Beazley reports premium jump, cuts construction business

(Reuters) – Beazley PLC reported an 11.1% rise in gross written premiums for the first nine months of 2018, helped by growth across all its divisions, and said it would report high single-digit growth in premiums for 2019.

However, the London-based insurer said it would stop underwriting construction and engineering business, a unit that accounted for about 10% of its property division’s premiums in 2017.

“After careful analysis, we concluded (construction and engineering business) was unlikely to satisfy our cross-cycle profitability requirements in the foreseeable future,” the company said.

Beazley estimated the initial cost of the recent Atlantic hurricanes and the typhoons in Asia to be around $105 million.

Although still substantial, the claims compared with a natural catastrophe bill between $200 million and $300 million from natural catastrophes in the second half of 2017.

“Our business continues to deliver double-digit premium growth and has been aided by higher rates in some classes following last year’s catastrophe losses,” said Andrew Horton, Beazley’s chief executive officer, in a statement.

The industry had faced record insurance losses of more than $135 billion from hurricanes, earthquakes and wildfires last year.

The company, which focuses on insurance lines such as data breach, management liability and healthcare, said gross written premiums rose to $1.96 billion for the nine months ended Sept. 30, from $1.76 billion a year earlier.

Beazley, which had warned in July that a “hard” Brexit could prove very expensive for Britain’s insurance sector, said on Thursday that it was working with Lloyd’s of London to ensure a smooth transition for its customers in all Brexit outcomes.