Beazley posts 19% rise in GWP for Q1

UK-based insurer Beazley has reported a 19% rise in gross written premiums for the first three months of 2010.

The insurer, reporting in US dollars for the first time, wrote $438.2m in gross premiums for the year to 31 March, up from $368.9m in the same period last year. Beazley said the growth had mainly been driven by acquisitions in its property and reinsurance lines of business.

The biggest increase in gross written premium was seen in Beazley’s property segment, which rose 59% to $83.1m in Q1. The company attributed this to the additional premiums written by the First State underwriting team that joined Beazley in Q2 2009.

The firm’s reinsurance segment’s gross written premiums were up 40% to $110.6m, and the marine division’s up 11% to $66m. Beazley attributed these increases to a rise in catastrophe risk appetite.

Beazley also reported that average rates across all lines decreased by 1%.

Despite the high-profile catastrophe losses suffered by the industry in Q1, Beazley said its claims costs continue to be in line with expectations. Its claims estimate for the Chile earthquake remains in the range of $55m to $75m based on market-wide losses in the range of $5bn to $8bn. The firm expects the losses to be covered by the reserves for the 2009 and 2010 underwriting years that are set aside to meet catastrophe claims.

Beazley estimates its net cost from the Deepwater Horizon oil rig explosion in the Gulf of Mexico is approximately $6m. The firm added that the outlook for the development of the 2009 underwriting year of the energy account and for 2010 reserve releases from the overall marine account remains strong.