Shares in Lloyds of London insurer Beazley (BEZ) fell sharply last week, eradicating their gains for the year, after the firm guided down expectations for premium growth from mid-single-digits to low-single-digits due to concern over market conditions.

Despite posting better-than-expected earnings for the six months to June, the FTSE 100 firm reported just a 2% increase in written premiums which it said reflected its disciplined approach and was ‘fully aligned with our strategy of prioritising rate adequacy and long-term profitability over short-term income’.

‘The first half of 2025 confirms geopolitical uncertainty remains, technology is transforming business, and the effects of climate change are ever present, all of which are creating new risks and decreasing predictability,’ commented chief executive Adrian Cox.

‘Specialty insurance companies have an important contribution to make during this time of transition and our focus remains on how we can support growth by utilising our powerful expertise, managing the market cycle as pricing conditions normalise,’ added Cox.

Jefferies’ analyst Philip Kett suggested Beazley’s results were ‘perhaps a precursor of what lies ahead more broadly’.

‘On the one hand, investors have been delivered a strong underwriting result which beat consensus. On the other, softening rates have prompted revenue to miss, and management’s prudent cycle management has led them to reduce revenue guidance.’ 

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