- Numis calls profit drop 'technicality'
- NAV per share jumps over a fifth
When you’re trading at 27 times earnings, investors expect a lot of growth. This might explain why shares in Beazley (BEZ) dropped 7 per cent in early trading after it posted a flat pre-tax profit and a drop in earnings per share.
The reaction looked a bit harsh, as perhaps shown by the fact the shares closed flat on the day. Numis blamed the insurer’s profit drag on "an IFRS 17 timing technicality, whereby the risk adjustment in reserves is front-loaded and premium income recognition is weighted to H2 to match risk profile seasonality". The broker said it expected Beazley to meet its full-year targets "assuming the property effect normalises at full-year as indicated”.