Beazley plc (LON:BEZ) has upgraded its 2025 combined ratio outlook to the low 80s, citing continued focus on underwriting discipline despite slower premium growth. This guidance was issued in a trading statement covering the nine months to 30 September 2025.
Insurance written premiums rose by 1% year-on-year to $4,670 million, while net insurance written premiums increased by 4% to $3,927 million. Renewal premium rates declined by 4%, compared with flat movement at the same point last year. Investment income reached $458 million, delivering a return of 3.9%, down from $513 million or 4.7% in the prior period.
Insurance written premium growth is expected to remain flat to low single digits for the full year. A key development during the period was the planned deployment of $500 million in capital to support the creation of a new platform in Bermuda, subject to regulatory approval, aimed at facilitating growth from 2026 onwards.
Chief Executive Officer Adrian Cox stated that market conditions continue to evolve rapidly across several lines, and the company remains committed to a disciplined underwriting approach. He noted that while this has led to slower growth, it supports improved profitability and underpins the upgraded combined ratio guidance. Cox added that the new Bermuda platform would enable Beazley to enter the alternative risk transfer market, supporting margin-led growth by leveraging existing expertise.
By division, Cyber Risks premiums fell 8% to $848 million due to ongoing rate reductions in North America, despite increasing ransomware claim activity. Rates were held flat at 1 July renewals, and cumulative pricing trends began to improve in the third quarter. Beazley reported stronger performance in its European cyber portfolio and expects continued international growth in underpenetrated markets.
MAP Risks achieved the strongest premium growth of 6% to $763 million, supported by sustained demand and strong rates across several product lines. The division, primarily underwritten through the Lloyd’s platform, is expected to maintain momentum into the fourth quarter.
Property Risks premiums grew by 2% to $1,436 million, with competitive market conditions continuing. The firm’s multi-platform model allowed for selective growth in areas with adequate pricing.
Specialty Risks premiums rose 3% to $1,437 million. Growth slowed compared to earlier in the year due to competitive conditions, particularly in directors and officers (D&O) insurance. However, increased capital markets activity led to outperformance in the M&A book, partially offsetting pressure in healthcare lines.
Natural catastrophe claims remained within expectations following a below-average hurricane season. Attritional claims normalised in the third quarter after a better-than-expected first half.
The company’s investment portfolio totalled $11.7 billion, up 2% from $11.4 billion in the prior year. Allocation remained largely stable, with 88.3% in the core portfolio and 11.7% in capital growth assets. Fixed income investments delivered a 4.0% average yield with a duration of 1.7 years.
The insurance finance expense stood at $169 million for the nine months. A change in financial assumptions provided income, which was more than offset by the impact of falling yield curves and the unwind of discounting credit.
Beazley reiterated its commitment to capital discipline and returning excess capital to shareholders, as demonstrated through its share buyback programmes in 2024 and 2025. The group’s year-end capital position will be reported with its full-year results.
