Beazley made the announcement alongside reporting its Q3 results
Beazley announced today that it will cease underwriting in construction and engineering.
The announcement was made alongside reporting its results for Q3, where it reported double-digit growth.
Explaining the decision to exit the key bussiness line, a statement read: “This business accounted for approximately 10% of our property division’s premiums in 2017. After careful analysis, we concluded it was unlikely to satisfy our cross-cycle profitability requirements in the foreseeable future.”
The news follows Barbican syndicate 1955 revealing it will be exiting multple lines in its 2019 business plan, including property insurance.
In releasing its results, Beazley confirmed Lloyd’s had approved its business plan for its Lloyd’s syndicates for 2019, together with the accompanying capital requirements. Beazley said it expects to have surplus capital (on a Solvency II basis) of 23% of the projected year end ECR.
The specialist insurer confirmed that GWP reached $1,958m for the period ending 30 September 2018, an increase of 11% compared to last year which was $1,762m.
Andrew Horton, chief executive, said: “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.
“Geographically, the main engine of our premium growth continues to be the US market, where we saw premiums rise 18% relative to the first nine months of last year. We expect this positive momentum to continue and are aiming to deliver high single digit growth for the group again in 2019.”
Its financial results demonstrated that growth has been achieved across all division, with significant increase across specialty lines in the US.
Specialty lines peaked at $1,026m, a rise from $925m.
Property jumped 11% from $281m to $340m. Marine increased by 2% from $205m to $221m and political, accident and contingency increased by 2% from $175m to $183m.
Reinsurance jumped up 6% from $176m to $188m.
Beazley mentioned that it continues to invest in growth and has launched a new SL international product in a range of European countries. It is also working with Lloyd’s to ensure a smooth transition for customers in all Brexit outcomes.
It said it continues actively underwriting and growing its architects & engineers and construction professional liability lines on a global basis.