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Beazley PLC (GB:BEZ)
LSE:BEZ
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Beazley
(LSE:BEZ)
Rating:79Outperform
Price Target:―
Beazley (BEZ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£5.61B
Dividend Yield2.75%
Average Volume (3M)2.05M
Price to Earnings (P/E)6.7
Beta (1Y)0.91
Revenue Growth7.79%
EPS Growth9.99%
CountryUK
Employees2,419
SectorFinancial
Sector Strength82
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.59
Shares Outstanding621,628,600
10 Day Avg. Volume1,920,732
30 Day Avg. Volume2,045,263
Financial Highlights & Ratios
PEG Ratio-0.64
Price to Book (P/B)1.95
Price to Sales (P/S)0.00
P/FCF Ratio4.58
Enterprise Value/Market Cap0.65
Enterprise Value/Revenue0.22
Enterprise Value/Gross Profit3.58
Enterprise Value/Ebitda-3.54
Forecast
1Y Price Target
£1,070.00Price Target Upside17.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
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 makes money primarily through underwriting insurance policies and collecting premiums from clients. Its revenue streams include premiums earned from underwriting activities across various lines such as cyber insurance, healthcare liability, and specialty lines. The company also generates income through investment returns on the premiums it holds before paying out claims. Beazley partners with brokers and other intermediaries to distribute its insurance products, which helps it reach a broad client base. The company's profitability is influenced by its ability to accurately assess risk, manage claims efficiently, and maintain a balanced investment portfolio.
Beazley Earnings Call Summary
Earnings Call Date:Mar 04, 2025
(Q4-2024)
| % Change Since: 4.76%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call presented a predominantly positive outlook with record profits, strong combined ratios, and significant growth in key segments like property and cyber. However, it also highlighted challenges such as increased market competition, wildfire impacts, and ongoing cyber threats, which necessitate careful management.Q4-2024 Updates
Positive Updates
Record Profits for Second Consecutive Year
Achieved record profits of over $1.4 billion, allowing a $700 million return to shareholders through dividends and a share buyback program.
Strong Combined Ratio
Delivered an undiscounted combined ratio of 79%, within the provided guidance of around 80%.
Growth in Property Insurance
Property team led with a 26% increase in insurance written premium, following a 64% growth in the previous year.
Cyber Division Innovations
Sponsored new cyber Cat bonds and launched Quantum consortium, enabling a $100 million primary line size.
Investment Success
Investments delivered a strong return of $574.4 million, marking a 20% increase over the prior year.
Strong Capital Position
Finished the year with a solvency capital ratio of 302% before distributions, indicating a robust capital position.
Negative Updates
Challenging Market Conditions
Faced a more normalized attritional loss ratio in the second half of the year and an active hurricane season.
Market Competition
Increasing competition in the insurance market, making growth more challenging as insurers look to expand.
Wildfires Impact
Provided a provision for wildfires that occurred in the first quarter of the year, impacting the combined ratio.
Cyber Market Challenges
Faced systemic cyber events, and the market needs to deal with increased frequency and severity of cyber threats.
Specialty Risks Exposure
Specialty risks segment exposed to social inflation, requiring ongoing active management and cycle management.
Company Guidance
During the call on March 5, 2025, Adrian Cox highlighted the company's impressive financial performance for the fiscal year 2024. The company achieved record profits for the second consecutive year, amounting to over $1.4 billion, which facilitated a return of $700 million to shareholders through a 25p dividend increase and a $500 million share buyback program. The firm's undiscounted combined ratio stood at 79%, aligning with its mid-year guidance of around 80%. The company reported a 10% growth in insurance written premium, with significant contributions from its property team, which posted a 26% increase in insurance written premium. The Cyber division also saw substantial activities, including the sponsorship of new cyber catastrophe bonds and the launch of Quantum, a consortium allowing a $100 million primary line size. Over the last decade, the firm's average return on equity was reported as 15%, with a target of maintaining a cross-cycle return at this level. The company also communicated an increase in its dividend to 25p, aligning it with the trajectory of premium growth, while indicating potential moderation in future growth due to market conditions. The projected guidance for 2025 includes a mid-80s combined ratio, reflecting anticipated market softening and recent wildfire losses.Beazley Financial Statement Overview
Summary
Beazley exhibits strong revenue growth and a solid financial position, marked by significantly increased equity and well-managed debt levels. While profitability metrics have shown some fluctuations, cash flows have remained robust, underpinning the company's financial health. The consistent growth trajectory and effective cash management position Beazley well for future stability and potential expansion.Income Statement
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.78
Positive
Balance Sheet
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.82
Very Positive
Cash Flow
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.85
Very Positive
| 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
Neutral
910.00
Price Trends
919.49
Negative
891.95
Positive
831.83
Positive
Market Momentum
-2.43
Positive
43.66
Neutral
26.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BEZ, the sentiment is Neutral. The current price of 910 is below the 20-day moving average (MA) of 929.63, below the 50-day MA of 919.49, and above the 200-day MA of 831.83, indicating a neutral trend. The MACD of -2.43 indicates Positive momentum. The RSI at 43.66 is Neutral, neither overbought nor oversold. The STOCH value of 26.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BEZ.
Beazley Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | £5.61B | 6.68 | 26.32% | 2.75% | 7.79% | 9.99% | |
79 Outperform | £10.26B | 15.46 | 56.17% | 8.48% | 34.86% | 95.18% | |
77 Outperform | £1.43B | 5.61 | 21.23% | 6.13% | 14.46% | -2.98% | |
67 Neutral | $17.01B | 11.90 | 9.70% | 3.76% | 11.63% | -9.47% | |
66 Neutral | £3.96B | 27.14 | 5.97% | 2.44% | 26.11% | -29.43% | |
| $5.75B | 9.28 | 17.96% | 3.52% | ― | ― | ||
65 Neutral | £367.84M | 10.17 | 14.37% | 4.72% | 32.88% | 99.17% |
* Financial Sector Average
Performance Comparison
GB:BEZ
Beazley
910.00
244.56
36.75%
GB:ADM
Admiral
3,348.00
894.54
36.46%
GB:DLG
Direct Line Insurance
304.80
115.86
61.32%
GB:LRE
Lancashire Holdings
585.00
50.78
9.51%
HCXLF
Hiscox
17.00
0.57
3.47%
GB:SBRE
Sabre Insurance Group plc
144.00
8.10
5.96%
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.