Lloyd's of London insurance group Beazley has disclosed a steep decline in profits for the first half of 2025, attributed to elevated losses from significant catastrophic events.
Beazley posted pre-tax profits of $502.5m (£371.9m) for the six months to 30 June 2025, marking a fall from the $728.9m recorded in the corresponding period of 2024, as reported by .
The specialist insurer revealed a two per cent rise in insurance written premiums, climbing to $3.2bn. During the opening half of the previous year, expansion reached 6.9 per cent.
The firm's undiscounted combined ratio, a crucial indicator of underwriting performance, registered 84.9 per cent, against 80.7 per cent in the comparative period. Beazley achieved an annualised return on equity of 18.2 per cent.
Beazley disclosed earnings per share for the timeframe of 52.5p and net asset per share of 560p, representing an 11 per cent year-on-year increase.
The business observed substantial rate softening throughout the initial six months, particularly within cyber and property sectors, where rates declined 6.8 per cent and seven per cent respectively. Portfolio-wide, rates dropped 3.9 per cent.
Notwithstanding the gentler pricing climate, Beazley observed: "The claims environment is active in respect to both frequency and severity, and uncertainty is elevated.
"We have seen climate related natural catastrophes such as the wildfires in California, alongside heightened cyber threats including a wave of ransomware attacks which particularly impacted retailers in the º£½ÇÊÓƵ and Europe in the first half of 2025," it added.
Despite a challenging loss environment and declining rates, the group reported an undiscounted combined ratio of 76.1 per cent for the first half of the year, a decrease from 80.8 per cent in the first half of 2024.
Beazley's outlook
On the investment side, the portfolio yielded a return of 2.7 per cent in the first half, bolstered by higher fixed income yields, allocations to investment-grade and high-yield credit, and collateralised loan obligations.
The firm reiterated its annual combined ratio target in the mid-80s and revised down its growth forecast.
The company has bought back $235m of the $500m share repurchase allocation announced at the start of March.
Adrian Cox, CEO of Beazley, commented: "We are very proud of our overall performance. A growth of two per cent reflects our disciplined approach and is fully aligned with our strategy of prioritising rate adequacy and long-term profitability over short-term income."
"This commitment to delivering strong profit through the market cycle is demonstrated by our 84.9 per cent undiscounted combined ratio."
"Our depth of experience in operating within a cyclical environment means we know when to take risk, and when to pull back."
"This phase is no exception. As ever we are focused on accessing the right opportunities, backed by the strength of our people, platforms and product set, all of which underpin our ability to adapt with confidence during periods of elevated uncertainty."
