Beazley Reports Strong Q1 Results, Shares Up 5.58%

Beazley PLC (GB: BEZ) shares gained 5.85% on May 6 to close at GBp430.20, after the insurer delivered strong first-quarter results. Headquartered in London, Beazley provides risk insurance and reinsurance solutions in the United States, Europe, and internationally.

Q1 Numbers

Notably, gross written premiums (GWP) grew 27% year-over-year to $1.22 billion compared to $971 million in Q1 2021. The GWP growth reflects a combination of rate increases as well as additional exposure in a number of areas.

Moreover, premium rates on renewal business increased by 17%, with premium growth witnessed in most of its divisions. Meanwhile, the combined ratio, a key measure of profitability for insurers, is expected to remain around 90% for the full year.

However, the insurer reported an investment loss of $92 million, compared to a gain of $27 million in the year-ago quarter.

CEO’s Comments

Beazley CEO, Adrian Cox, stated, “We continue to monitor the situation closely and have assessed our potential exposures across our business. To date, we have seen a small number of claims with respect to the conflict, and we remain confident in our combined ratio guidance of around 90% for the full year.”

Wall Street’s Take

Following the Q1 results, J.P. Morgan reiterated a Buy rating on the stock with a price target of GBp670 (49.69% upside potential).

The rest of the Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on seven Buys and four Holds. The average Beazley stock forecast of GBp543.67 implies 21.46% upside potential to current levels.

Conclusion

Notably, shares of the specialty insurer have gained over 30% in the past year. Positively, the company stated that, driven by almost doubling rates in Cyber, “the year has started well” with higher gross premiums written.

An improved overall rating environment as well as stabilized rates bodes well for the stock in the coming times.

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