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.
First Lloyd's results in reporting season very impressive despite Chilean earthquake and Deepwater Horizon
Shares still trade below NAV and 5.1 PER is below 6.1% yield
Fair value per share seen at 147p versus current 123p mark
Impressive and conservatively stated results for 2009
Strong yield support at over 6%
Forward PER of only 4.5x for this year looks too low
Beazley has accompanied a fairly impressive set of results – IFRS profits of £87m in a year that Swiss Re reckons was the second most expensive year ever for insurers of natural catastrophes – with a Rights issue to raise £150m. This is to help expand its business, partly by acquisition, at a time when returns are expected to be much above average and to enhance earnings per share.
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