Beazley sets aside $125 million for natural disaster claims

(Reuters) — Beazley PLC has set aside $125 million to account for claims related to natural disasters, including Hurricane Ida and the European floods, the British insurer said Friday.

The London-listed company, which provides property/casualty, cyber and political risk insurance, said it now expects its combined ratio — a key measure of an insurer's profitability — to be in the mid-90s for the year. A ratio below 100 indicates an underwriting profit.

The Lloyd's of London insurer said gross written premiums jumped 29% to $3.27 billion for the nine months through September from the year-earlier period, with rates within the cyber and executive risk division surging 48%.

“I remain excited about the opportunity in the cyber market,” Beazley CEO Adrian Cox said in a statement. “The momentum from the first half has persisted into the second with rate rises and premium growth that have exceeded our expectations.”

Shares in Beazley were up 2.4% at 405.8 pence by 0834 GMT.

Beazley's rivals Lancashire and Hiscox have also posted strong premiums written this year, as British insurers get a boost from a steady improvement in rates.