Shares in specialist insurance underwriter Beazley (BEZ) reached an all-time high at the beginning of August after the firm posted sharply higher half-year earnings and said it saw more business opportunities in underwriting cyber risk insurance.

The company, which manages six Lloyd’s of London syndicates, reported pre-tax profit of $729 million for the six months to June or almost double last year’s level as its combined ratio dropped to 77% from 84% (a combined ratio below 100% means the company makes a profit on underwriting, the lower the ratio the more profit it makes).

The firm admitted the recent global IT outage caused by a faulty software upgrade from cyber security firm Crowdstrike (CRWD:NASDAQ) had tested its risk controls and said they proved to be ‘highly resilient’.

Chief executive Adrian Cox commented: ‘Expertise in underwriting and active risk selection are key drivers of this strong result, even as the rating environment is moderating.’

Cox added: ‘We see opportunities in the remainder of the year and are confident in delivering on our high single-digit growth guidance.’ 

Jefferies’ insurance analyst James Pearce described Beazley as the gold-medal winner in terms of results.

‘Beazley was the stand-out performer among the UK specialty names, significantly exceeding earnings expectations as well as improving guidance.’ 

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