Beazley 2010 pre-tax profit up 59%

Lloyd's insurer Beazley made a profit before tax of $250.8m for the full 2010 year, up 59% on the $158.9m it made in 2009.

Excluding the exceptional foreign exchange gain Beazley made during the year, the profit was $217.1m and return on equity was 18.7%.

The insurer also increased its combined ratio by two points to 88% in 2010 from 90% in 2009. It made $144.6m of prior-year reserve releases during the year, up from $105.5m in 2009.

“Our 25th year in business was distinguished by excellent profits and an enhanced underwriting result in the teeth of worsening market conditions," said Beazley chief executive Andrew Horton in a statement.

The improved result came despite a 57% slump in investment income to $37.5m from $88.1m. Gross written premium also fell slightly to $1.74bn from $1.75bn.

Beazley has increased its loss estimate for the New Zealand earthquake to $35m from an initial estimate of $15m to $30m. The new figure is based on a market-wide loss of $3bn to $5bn. Beazley's loss estimate for the Cghilean earthquake remains in the range of $55m to $75m.