An absence of catastrophic events supported yet another strong underwriting result at Lloyd’s insurer Beazley (BEZ). Its combined ratio (of claims to premiums) at the half-year stage remained virtually unchanged year-on-year at an impressively profitable 90 per cent.
But premium rates are under pressure. An influx of new capital into the reinsurance market, for instance, depressed Beazley’s reinsurance premium rates by a hefty 20 percentage points in the half, while its marine account saw rates fall seven percentage points. Elsewhere, the pressure isn’t quite so severe. In fact, the group’s specialty lines account - its largest operation - delivered a two percentage-point rate rise in the half, and average rates dipped by a fairly modest two percentage points across the book.