Beazley has suffered a £19.3m fall in its profit before tax, from £35.4m in 2004 to £16.1m in 2005.
The listed insurer attributed the results to the unprecedented hurricane activity, with Katrina, Wilma and Rita having a combined negative effect of £60m on the group's bottom line.
The group's combined ratio declined from 89% to 105%.
Beazley's gross written premiums increased by 39% to £558m, while net written premiums rose by 29% to £425.8m. Beazley shareholders will receive a final dividend of 2.5p, making a total dividend for the year of 4p, compared with just 1p in 2004.
Beazley's chief executive, Andrew Beazley, said that 2005 was “the most costly year in history for the insurance industry. The scale of the losses has tested both the market and the strength of our business”.
However, he remains bullish: “Following the impact of the hurricane season, we have seen the rating environment improve across the commercial property, offshore energy and reinsurance lines of business. Our US expansion plans have been vigorously pursued and these operations will continue to provide further growth opportunities.”
