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Beazley
Beazley is a high-quality non-life insurer, operating through two Lloyd’s syndicates and an “admitted lines” US Insurance company. It has an exceptional track record for underwriting having provided the Names on its syndicate with a profit on every closed year of account since it started.
Results: resilient underwriting, disappointing investment returns
Strong USA growth vs decline in Lloyd’s premiums
Well placed at this point of premium cycle
Despite soft premium rates outlook fair value still 160p / share
Impressive results continue
Beazley’s results were predictably good with pre-tax profits of £138.5m,nearly 1% above my July forecast and 12% ahead of the “consensus”. Profit before tax and the IFRS forex adjustment rose by 35% (pre-tax was up 60%), stated earnings per share by 68% and dividends (including a 4p special dividend) by 108%.
Doubled profits - Beazley beats expectations
Excellent underwriting performance
Growth in USA accelerating
Investment income a sound foundation for future profits
Prospect of return of surplus capital
Beazley; Impressive results but more to go for
- Rapid growth continues
- Firm premium rates and a benign claims environment
- Beazley US now reaching critical mass
Beazley; profit upgrades and strategically well placed
- Consistently profitable Lloyd's insurer
- Showing rapid growth and excellent return on capital
- Upgrading of our 2006 and 2007 forecasts
- Short term fair value seen at 169p/share; medium term target 210p
- Current price 146p
