Beazley reports ‘benign’ Q1 claims activity as GWP rises 9%

Lloyd’s insurer Beazley wrote gross premiums of $465m (£288m) in the first quarter of 2012, up 9% on the $426m it wrote in the same period last year.

The only line where gross written premium reduced was reinsurance (see below).

The company achieved rate increases of 2% on renewal business in the quarter, compared with a 1% drop in the same quarter last year.

Beazley also reported an improvement in annualised investment return to 1.9% of invested assets (Q1 2011: 0.9%).

“The first quarter of the year has seen a number of positive developments, with premium volume and rates up in line with our business plan,“ Beazley chief executive Andrew Horton said in a statement. “After the exceptional events of 2011 – for which our original loss estimates remain unchanged – claims activity has been benign.”

Beazley launched new products in the healthcare, directors and officers (D&O) and technology classes of business. These include Beazley Breach Response for small businesses and Beazley Global Breach Solutions both of which provide coverage for data breaches. The company also launched Beazley Bridge, which provides international D&O cover for US domiciled businesses.

In addition to its results, Beazley also announced its intention to buy back £35m of its own outstanding £150m of subordinated bonds. The bonds are due to mature in 2026.

Beazley said its $225m letter of credit facility remains undrawn and that the company has maintained its target capital buffer during the quarter.