U.S. specialty lines drive Beazley premium growth

(Reuters) — Lloyd's of London insurer Beazley P.L.C. reported a 6% jump in gross written premiums, helped by strong growth in its U.S. specialty lines business.

Gross written premiums rose to $1.64 billion in the nine months ended Sept. 30, from $1.55 billion a year earlier.

The underwriter provides marine, casualty and property insurance and reinsurance. Its specialty lines business caters to the professional and management liability needs of mid-size and small organizations.

The specialty division, its largest, grew 19%, to write premiums of $748 million, the company said.

"This growth helped us offset the highly competitive market conditions for other lines," Beazley said in a statement Thursday.

Gross premiums for marine insurance fell 15% in the period, while life, accident and health fell 6%.

Premium rates on renewal for specialty lines also increased, up 2%, in the period, the insurer added.

Haitong Research retained its “buy” recommendation on the stock, citing the support from sectorwide mergers and acquisitions and the potential for a special dividend for the year ending December 2015.

"Beazley is, however, proving it can produce differentiated and profitable growth as a standalone company," Haitong Research said.

Shares in the company were down 1 percent, at 362.8 pence, in early trading Thursday on the London Stock Exchange. They have risen about 33 percent since the beginning of the year.