Beazley (BEZ) AI Stock Analysis

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Beazley

(LSE:BEZ)

Rating:74Outperform

Price Target:

896.00p

▲(14.07% Upside)

Beazley's overall stock score is driven by strong financial performance and positive earnings call insights, indicating robust profitability and strategic management. However, technical analysis suggests bearish momentum, which slightly offsets the positive outlook. The stock's undervaluation and attractive dividend yield further support its investment potential.

Beazley (BEZ) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap

£4.73B

Dividend Yield3.18%

Average Volume (3M)3.03M

Price to Earnings (P/E)6.6

Beta (1Y)0.87

Revenue Growth6.00%

EPS Growth-24.29%

CountryUK

Employees2,419

SectorFinancial

Sector Strength71

IndustryInsurance - Property & Casualty

Share Statistics

EPS (TTM)0.49

Shares Outstanding610,542,300

10 Day Avg. Volume2,482,619

30 Day Avg. Volume3,034,610

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

£1,013.50

Price Target Upside29.03% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

Beazley Business Overview & Revenue Model

Company DescriptionBeazley 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, cyber and technology, and media and business services. The company's Marine segment underwrites various marine classes, including hull, energy, cargo and specie, piracy, satellite, aviation, kidnap and ransom, and war risks. Its Market Facilities segment underwrites portfolios of businesses. The company's Political, Accident & Contingency segment underwrites terrorism, political violence, expropriation, and credit risks, as well as contingency and risks associated with contract frustration. This segment also underwrites life, health, personal accident, sports, and income protection risks. Its Property segment provides commercial and homeowners' insurance. The company's Reinsurance segment specializes in writing property catastrophe, property per risk, casualty clash, aggregate excess of loss, and pro-rata businesses. Its Specialty Lines segment underwrites a portfolio of businesses comprising architects and engineers, healthcare, lawyers and environmental liability, market facilities business, and international financial institutions. The company was founded in 1986 and is based in London, the United Kingdom.

How the Company Makes MoneyBeazley 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 conditions. The company also earns investment income by managing the funds accumulated from premiums until claims are paid out. Additionally, Beazley has strategic partnerships with brokers and agents, which enhance its distribution capabilities and market reach. Factors contributing to its earnings include its reputation for underwriting expertise, its ability to identify and capitalize on emerging risks, and its strong capital management practices.

Beazley Earnings Call Summary

Earnings Call Date:Aug 13, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Feb 05, 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.

Q2-2025 Updates

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%.

Investment Portfolio Success

Achieved an investment profit of just over $300 million, equivalent to a 5.4% annualized return, despite a volatile investment environment.

MAP Division Growth

The fastest-growing division is MAP, driven by rising demand for products such as contingency, political risks, terrorism, and war, reflecting high levels of geopolitical risk.

Cyber Portfolio Management

Cyber combined ratio stands at 82.3%, reflecting strong performance from reduced frequency and severity of claims despite competitive market conditions.

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.

Cyber Market Challenges

Faced a challenging rate environment in the North American cyber market, with intense competition and elevated claims activity affecting growth.

Expense Ratio Increase

IFRS 17 expense ratio increased due to variable incentive awards and continued investments in technology for long-term efficiencies.

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

Beazley demonstrates strong revenue growth and a solid financial position, with increased equity and well-managed debt. Profitability metrics show some volatility, but cash flows are robust, underpinning financial health and positioning the company well for future stability.

Income Statement

Positive

Beazley has demonstrated strong revenue growth over the past years, with a notable increase from 2019 to 2023, peaking at 5,099.5 million in 2023. The gross profit margins are robust given that gross profit equals total revenue. However, the net profit margin showed fluctuation, particularly with a negative margin in 2020. The EBIT and EBITDA margins indicate some operational challenges, as seen in 2024 with both at zero. Overall, the company is showing strong top-line growth, but profitability metrics display some volatility.

Balance Sheet

Very Positive

Beazley's balance sheet reflects a stable financial position with a healthy increase in stockholders' equity from 1,625.3 million in 2019 to 4,606.8 million in 2024. The debt-to-equity ratio has been well-managed, staying relatively low over the years, indicating prudent use of leverage. The equity ratio has improved significantly, suggesting a stronger capital base and reduced financial risk.

Cash Flow

Very Positive

The company's cash flow performance is impressive, with consistent free cash flow generation and growth over the years. The operating cash flow to net income ratio is strong, reflecting effective conversion of earnings into cash. Despite fluctuations in net income, the company has maintained positive free cash flows, highlighting operational efficiency and strong cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01B	5.10B	3.47B	3.29B	2.91B
Gross Profit	1.01B	584.70M	3.47B	3.29B	2.91B
EBITDA	1.42B	-374.60M	613.90M	409.60M	0.00
Net Income	1.13B	1.03B	483.30M	308.70M	-46.10M
Balance Sheet
Total Assets	15.42B	13.67B	15.10B	12.81B	10.59B
Cash, Cash Equivalents and Short-Term Investments	882.10M	593.30M	652.50M	591.80M	309.50M
Total Debt	615.60M	624.90M	620.70M	631.90M	637.20M
Total Liabilities	10.81B	9.78B	12.53B	10.68B	8.78B
Stockholders Equity	4.61B	3.88B	2.57B	2.13B	1.81B
Cash Flow
Free Cash Flow	572.10M	338.00M	1.10B	1.17B	463.90M
Operating Cash Flow	634.90M	393.20M	1.10B	1.17B	476.80M
Investing Cash Flow	-62.80M	-55.20M	-1.25B	-839.20M	-611.90M
Financing Cash Flow	-515.60M	-190.80M	235.70M	-48.00M	177.80M

Beazley Technical Analysis

Technical Analysis Sentiment

Negative

Last Price785.50

Price Trends

50DMA

864.61

Negative

100DMA

891.56

Negative

200DMA

856.04

Negative

Market Momentum

MACD

-27.23

Negative

RSI

36.98

Neutral

STOCH

49.84

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BEZ, the sentiment is Negative. The current price of 785.5 is below the 20-day moving average (MA) of 803.95, below the 50-day MA of 864.61, and below the 200-day MA of 856.04, indicating a bearish trend. The MACD of -27.23 indicates Negative momentum. The RSI at 36.98 is Neutral, neither overbought nor oversold. The STOCH value of 49.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BEZ.

Beazley Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADM	81 Outperform	£10.24B	12.38	65.36%	5.75%	22.62%	106.27%
LRE	77 Outperform	£1.44B	8.03	15.18%	12.83%	8.78%	-38.83%
BEZ	74 Outperform	£4.73B	6.57	22.59%	3.18%	6.00%	-24.29%
Sector *	68 Neutral	$17.81B	11.87	10.24%	3.74%	9.75%	1.30%
DLG	66 Neutral		―		―	26.11%	-29.43%
HCXLF	―	$5.81B	9.75	16.60%	2.69%	―	―
SBRE	65 Neutral	£343.17M	8.74	16.39%	4.50%	7.77%	35.65%

* Financial Sector Average

Performance Comparison

GB:BEZ

Beazley

785.50

37.91

5.07%

GB:ADM

Admiral

3,342.00

696.19

26.31%

GB:DLG

Direct Line Insurance

304.80

128.97

73.35%

GB:LRE

Lancashire Holdings

592.00

20.17

3.53%

HCXLF

Hiscox

17.10

2.21

14.84%

GB:SBRE

Sabre Insurance Group plc

140.00

5.54

4.12%

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.Date of analysis: Aug 19, 2025