London headquartered specialty insurance and reinsurance firm Beazley has significantly expanded its property book of business in the first-quarter of 2023, reporting 56% gross premium growth for that segment of its underwriting portfolio.
Beazley had expressed a desire to grow into the harder reinsurance market environment and appears to have taken this opportunity in Q1.
The property book outgrew all others at Beazley, even the firm’s previous growth-leader of cyber risks, which only grew its gross premiums written by 24% during the period.
Adrian Cox, Chief Executive Officer, commented, “The first quarter saw us deliver good headline growth in line with our expectations, underpinned by growth in property, where we are taking advantage of the excellent and continuing market conditions.
“Our diversified business, together with our ability to adapt according to the underwriting pricing cycles, allow us to adjust as opportunities and challenges emerge.
“We are positive in terms of our outlook for the first half and are confident of delivering our full year guidance.”
Across the Beazley business, gross premiums written increased by 12%, but reflecting a desire to retain more business in the hard market and attractive underwriting conditions, Beazley’s net premiums grew by 24% in the quarter.
Across the business premium rates increased by 10% for Beazley in Q1 2023, which was actually a slower rate than a year earlier, when rates rose by 17% for the Beazley business.
However, rate increases in the fast-growing property insurance and reinsurance business rose by an impressive 29% for Beazley in Q1, underscoring the attractiveness of this segment and one of the key drivers for growth.
“We have taken advantage of the significant opportunity in the property (re)insurance market(s) which we had been anticipating,” the company reported, citing both exposure growth and high-double digit rate increases.
Finally, but also of note, Beazley reported that its third-party capital backed ‘smart tracker’ syndicate 5623 took a larger share of business from its MAP risks division, where marine, aviation, political risk and other similar lines sit.
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