Beazley slumps as premium growth outlook weakens further

(Sharecast News) - Shares in insurance giant Beazley tumbled on Tuesday after it cut its premium growth guidance for 2025, warning that gross income written premium growth was now expected to be flat to low single digits. The FTSE 100 group had previously guided for mid‑single digit growth in April, before trimming that to low‑to‑mid single digits in its half‑year results in August, with the latest downgrade marking a further step down in expectations.

Beazley said the revision reflected competitive pressures and softer renewal rates, alongside weakness in its Cyber Risks division, where premiums in North America fell 8% and rates declined 6%. Specialty Risks also saw slower demand, particularly in directors' and officers' and healthcare lines.

Investment income slipped to 3.9% to $458m, while attritional claims normalised in the third quarter after a quieter first half. Gross written premiums rose just 1% in the nine months to 30 September, with net premiums up 4%, while renewal rates fell 4%, compared with flat pricing a year earlier.

Despite the weaker growth backdrop, Beazley upgraded its combined ratio guidance to the low 80s, citing benign catastrophe activity and continued underwriting discipline. The group also highlighted capital deployment plans, including $500m for a new Bermuda platform to expand into alternative risk transfer markets from 2026.

As of 1255 GMT, Beazley shares had slumped 8.82% to 784.17p.

Reporting by Iain Gilbert at Sharecast.com