'Good Trading Performance' Brings 45% Rise in Beazley's Nine-Month Premiums

Pointing to "a good trading performance," Lloyd's insurer Beazley plc reported a 45% increase in gross premiums written in the first nine months of 2009 to 861.9 million pounds (964.4 million euros) from 595.4 million pounds in the same period in 2008.

The premium increase "was driven by the effect of acquisitions, organic growth and the devaluation of sterling against the U.S. dollar," Beazley said in a statement.

Investments and cash rose 31% to 2.23 billion pounds from 1.7 billion pounds. Beazley said it is on target for a combined ratio of 90 in 2009. Investment return rose to 2.8% on an annualized basis, up from a loss of 1.1%. This translated into investment income of 44.5 million pounds, up from a loss of 13 million pounds.

The past year has been one "of growth for Beazley at a time of improving premium rates," Chief Executive Officer Andrew Horton said in a statement.

The increase in premiums was supported by capital raised at the beginning of 2009, Horton said.

"The global economic crisis has continued to impact our business lines particularly in the political risk account," Horton said. "However our recession planning has proved robust, and we are well placed to capitalize on growth opportunities."

Lines involving catastrophe exposures have seen the most market premium rate increases, Beazley said, noting "intense" competition in some casualty business and its own determination to maintain discipline on price.

A good claims experience in reinsurance and marine has cleared the release of reserves, Beazley said. But there has been a rise in political risk and contingency claims, the group said, pointing to the problems of the wider economy. A move of assets into government bonds and securities has lessened investment risk, Beazley said.

Premiums written locally in the United States rose 38% to $274.9 million from $199 million.

Attempts to reach Beazley were not immediately successful.