Beazley's Shares Hit Record After Insurer's Profit Beat, Limited LA Wildfire Losses

Beazley PLC, a leading Lloyd's of London insurer, has seen its shares hit a record high following the announcement of its 2024 financial results and the limited impact of the Los Angeles wildfires on its operations. The company reported a record profit before tax of $1.4 billion, a 13% increase from the previous year, driven by strong premium growth and improved underwriting profitability.

Beazley's gross insurance written premiums grew by 10% to $6.2 billion, while net insurance written premiums also increased by 10% to $5.2 billion. The company's undiscounted combined ratio improved to 79%, compared to 74% in 2023, with a discounted combined ratio of 75%. Despite the slightly higher loss ratio, Beazley guided for mid-single-digit growth in gross insurance written premiums in 2025 and expected an undiscounted combined ratio in the mid-80s range.



The company's CEO, Adrian Cox, attributed Beazley's robust performance to its "strength of expertise" and ability to take advantage of growth opportunities in an evolving market. Beazley's share price has been trading at a premium to its 52-week low, indicating strong investor interest. As of 2024-08-08, the stock was trading at 724.00p, a 13.66% increase from its 52-week low of 493.80p.



Beazley's share buyback program and increased ordinary dividend are likely to have a positive impact on investor sentiment and the company's stock price. The company announced a $500 million share buyback program and a 76% rise in its ordinary dividend to 25p per share. These moves signal confidence in the company's financial health and future prospects, making the stock more attractive to investors.

In conclusion, Beazley's strong financial performance, driven by premium growth and improved underwriting profitability, coupled with the limited impact of the Los Angeles wildfires, has contributed to the company's share price hitting a record high. The company's share buyback program and increased ordinary dividend are likely to further boost investor sentiment and the stock price. As Beazley continues to demonstrate its expertise and adapt to an evolving market, investors can expect the company to maintain its strong financial performance and growth prospects.

Ask Aime: What is the impact of Beazley's record high share price due to its strong financial performance?