Insurance specialist reported PBT up 3%, return on equity of 18%, and a 10p special divi
Companies: Beazley Plc
Shares in Beazley Plc rose 9% on Friday after the insurance specialist reported strong end of year trading figures, with pre-tax profit up 3% to $293.2m, return on equity of 18%, and a second interim dividend and special dividend totally 17p.
Beazley, the parent company of several specialist insurance businesses underwrote gross premiums worldwide of $2.2bn in 2016, a 6% increase on the previous year:
“Against a background of continued sharply falling premium rates for most large risk business, Beazley delivered a very strong performance in 2016, generating a return on average shareholders' equity of 18% (2015: 19%) and premium growth of 6%.”
Beazley's Board also announced it was paying a second interim dividend of 7p/share and a special divi of 10p/share. Combined with the first interim divi of 3.5p, this means the total dividend declared for 2016 is 20.5p.
CEO Andrew Horton said Beazley's performance had been good across the company in 2016, with increased profits driven by higher investment returns:
"...which generated a combined ratio of 89% in 2016 despite highly competitive conditions in many of our markets. Overall premium growth doubled to 6% and we were able to develop a number of growth opportunities, particularly in the US, that enabled us to offset areas where market conditions dictated that we cut back."
Beazley shares jumped 9% early on Friday.
