Beazley PLC (GB:BEZ)
LSE:BEZ
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Beazley
(LSE:BEZ)
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Rating:80Outperform
Price Target:
1,481.00 p
▲(16.80% Upside)
Action:ReiteratedDate:03/06/26
Overall strength is driven primarily by solid fundamentals (growth, profitability, improving leverage) and supportive earnings-call guidance highlighting strong underwriting results and capital returns. Valuation is attractive on a low P/E, while technicals are positive but tempered by overbought momentum signals.
Positive Factors
Underwriting Profitability
Beazley's $503m profit, >18% ROE and sub-85% combined ratio reflect durable underwriting discipline in specialty lines. Sustained underwriting profitability supports reserve strength and recurring capital returns, anchoring earnings even when investment returns fluctuate.
Negative Factors
Earnings Volatility
Earnings and profitability have swung materially across years, including negative EBITDA in 2023 and a loss in 2020. Such cycle-driven volatility complicates forecasting, capital planning and makes medium-term return predictability dependent on timing of claims and pricing cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Underwriting Profitability
Beazley's $503m profit, >18% ROE and sub-85% combined ratio reflect durable underwriting discipline in specialty lines. Sustained underwriting profitability supports reserve strength and recurring capital returns, anchoring earnings even when investment returns fluctuate.
Read all positive factors
Beazley (BEZ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£7.47B
Dividend Yield2.99%
Average Volume (3M)2.71M
Price to Earnings (P/E)7.3
Beta (1Y)0.54
Revenue Growth6.00%
EPS Growth-24.29%
CountryUK
Employees2,419
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.61
Shares Outstanding599,509,900
10 Day Avg. Volume2,391,670
30 Day Avg. Volume2,708,941
Financial Highlights & Ratios
PEG Ratio-0.77
Price to Book (P/B)1.40
Price to Sales (P/S)1.00
P/FCF Ratio7.15
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,264.17Price Target Upside-0.30% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)1.4
Revenue Forecast (FY)£6.20B
Beazley Business Overview & Revenue Model
Company Description
Beazley plc provides risk insurance and reinsurance solutions in the United States, Europe, and internationally. Its Cyber & Executive Risk segment underwrites management liabilities, such as employment practices risks and directors and officers, ...
How the Company Makes Money
Beazley generates revenue primarily through the underwriting of insurance policies and reinsurance contracts. The main revenue stream comes from the collection of premiums from policyholders, which are set based on risk assessments and market cond...
Beazley Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a strong financial performance with significant profit and investment returns. However, challenges in growth rates and competitive market conditions, particularly in cyber, were noted. Despite these challenges, the company's strategic management of its portfolio and investments provides a positive outlook.Positive Updates
Strong Profit Performance
Generated a profit of $503 million, significantly above consensus, with an annualized return on equity of over 18% and a combined ratio of just under 85%.
Negative Updates
Slow Growth Rate
Reported a modest growth of 2% in the first half, below the expected mid-single-digit growth, due to increased competition and deliberate product selection.
Read all updates
Q2-2025 Updates
Positive
Negative
Strong Profit Performance
Generated a profit of $503 million, significantly above consensus, with an annualized return on equity of over 18% and a combined ratio of just under 85%.
Read all positive updates
Company Guidance
In the 2025 Interim Results Presentation, Beazley provided guidance on various metrics, reflecting a robust financial performance, despite a challenging market environment. The company reported a profit of $503 million, with an annualized return on equity exceeding 18% and a combined ratio of 84.9%. This strong result is attributed to effective underwriting and claims management, particularly in the face of increased large and catastrophic losses. While the company experienced a modest growth of 2% in the first half of the year due to competitive market conditions, it expects mid-single-digit growth for the full year, focusing on sectors with adequate rates and favorable risk-reward dynamics. Investment performance was also strong, with a return of 2.7% in the first half, contributing to a significant investment profit of over $300 million. Beazley maintained a robust Solvency II ratio of 287%, including a $500 million share buyback, and is on track to complete a $700 million capital return program by year-end. The company expects continued underwriting discipline and market opportunities to support future growth and profitability.Beazley Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.87B | 5.91B | 5.10B | 3.47B | 3.29B |
| Gross Profit | 6.87B | 5.91B | 584.70M | 3.47B | 3.29B |
| EBITDA | 1.21B | 1.42B | -374.60M | 613.90M | 409.60M |
| Net Income | 932.56M | 1.13B | 1.03B | 483.30M | 308.70M |
Balance Sheet | |||||
| Total Assets | 16.20B | 15.42B | 13.67B | 15.10B | 12.81B |
| Cash, Cash Equivalents and Short-Term Investments | 1.37B | 882.10M | 593.30M | 652.50M | 591.80M |
| Total Debt | 626.93M | 615.60M | 624.90M | 620.70M | 631.90M |
| Total Liabilities | 11.33B | 10.81B | 9.78B | 12.53B | 10.68B |
| Stockholders Equity | 4.87B | 4.61B | 3.88B | 2.57B | 2.13B |
Cash Flow | |||||
| Free Cash Flow | 957.07M | 572.10M | 338.00M | 1.10B | 1.17B |
| Operating Cash Flow | 970.75M | 634.90M | 393.20M | 1.10B | 1.17B |
| Investing Cash Flow | 264.54M | -62.80M | -55.20M | -1.25B | -839.20M |
| Financing Cash Flow | -774.92M | -515.60M | -190.80M | 235.70M | -48.00M |
Beazley Technical Analysis
Positive
1268.00
Price Trends
1209.02
Positive
1012.90
Positive
936.14
Positive
Market Momentum
21.81
Positive
76.58
Negative
8.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BEZ, the sentiment is Positive. The current price of 1268 is above the 20-day moving average (MA) of 1264.69, above the 50-day MA of 1209.02, and above the 200-day MA of 936.14, indicating a bullish trend. The MACD of 21.81 indicates Positive momentum. The RSI at 76.58 is Negative, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BEZ.
Beazley Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | £7.47B | 7.34 | 22.59% | 2.99% | 6.00% | -24.29% | |
78 Outperform | £9.37B | 12.89 | 51.59% | 7.42% | 22.62% | 106.27% | |
75 Outperform | £4.88B | 10.38 | 15.63% | 1.93% | 1.12% | -18.14% | |
75 Outperform | £374.25M | 8.52 | 11.29% | 4.89% | 7.77% | 35.65% | |
74 Outperform | £1.42B | 6.98 | 15.28% | 11.03% | 8.78% | -38.83% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | £138.34M | 9.54 | 10.08% | 2.90% | ― | ― |
* Financial Sector Average
GB:BEZ
Beazley
1,268.00
358.94
39.48%
GB:ADM
Admiral
3,060.00
403.00
15.17%
GB:HUW
Helios Underwriting
202.00
3.55
1.79%
GB:LRE
Lancashire Holdings
580.00
98.01
20.33%
GB:HSX
Hiscox
1,510.00
365.75
31.96%
GB:SBRE
Sabre Insurance Group plc
153.20
36.92
31.76%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.