Beazley plc results for six months ended 30 June 2013
• Profit before income tax of $82.3m (2012: $112.9m)
• Gross premiums written increased by 5% to $1,066.7m (2012: $1,013.1m)
• Combined ratio of 89% (2012: 91%)
• Rate change on renewal business of 1% (2012: 3%)
• Prior year reserve releases of $60.8m (2012: $47.6m)
• Investment return of $0.3m (2012: $36.1m)
• Annualised return on equity of 12% (2012: 18%)
• Interim dividend up 7% to 2.9p (2012: 2.7p)
Andrew Horton, Chief Executive Officer, said:
"Beazley delivered a strong underwriting result in the first half of the year. Gross premiums written grew by 5% and we achieved a combined ratio of 89% despite increasing competition in a number of classes of business. Investment returns were down due to mark to market losses in our fixed income holdings caused by rising interest rates. Looking forward, however, higher interest rates promise enhanced investment returns."
The board has declared a first interim dividend of 2.9 pence (2012: 2.7 pence), in line with our strategy of delivering 5-10% dividend growth. This will be paid on 30 August 2013 to shareholders on the register at 5.00pm on 2 August 2013.