Slide 1: Results for the year ended 31 December 2024
Results for the year ended st 31 December 2024 4th March 2025
Slide 2: Presenters: Adrian Cox, Barbara Plucnar Jensen, Paul Bantick
Adrian Cox Group Chief Executive Officer Barbara Plucnar Jensen Group Chief Financial Officer Paul Bantick Group Chief Underwriting Officer 2
Slide 3: Contents
Contents 05 Highlights Long-term sustainability 07 of financial performance 11 Our underwriting 23 Financial performance 33 Outlook 36 Appendix 3
Slide 4: Disclaimer notice
Disclaimer notice Certain statements made in this presentation, both oral and written, are or may constitute “forward looking statements” with respect to the operation, performance and financial condition of the Company and/or the Group. These forward-looking statements are not based on historical f
Slide 5: Highlights
Highlights 2024 4th March 2025
Slide 6: Highlights 2024 - Record profit second year in a row
Highlights 2024 - Record profit second year in a row Business resilience in Property delivered Market leading Strong growth from challenging claims continued growth initiatives in Cyber niche areas in environment of 26% Specialty Risk Record profit Undiscounted Gross Insurance $500m share of $1,424m
Slide 7: Long-term sustainability of financial performance
Long-term sustainability of financial performance 4th March 2025 7
Slide 8: Total shareholder returns v specialty peers
Total shareholder returns v specialty peers 350% 300% +287% 250% 200% +205% 150% 100% +76% 50% - 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 BEZ UK Peer Group Average US Peer Group Average Note: (1) UK peer group: Lancashire, Hiscox, Conduit, (2) Conduit TSR calculated from 01-Dec-20; dat
Slide 9: Cross cycle ROE – achieving target over 5 and 10 years
Cross cycle ROE – achieving target over 5 and 10 years 30% 30% • Cross cycle ROE 27% target of 15% 20% • 10 year average 19% 18% 16% 19% 15% ROE 15.5% 10% 15% • 5 year average 9% ROE 17.7% 0% 5% (3)% (10%) (20%) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Investment ROE Insurance ROE RoE (%) I
Slide 10: Dividend rebased – confidence in sustainability of performance
Dividend rebased – confidence in sustainability of performance 250% 200% 150% 100% 50% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Cumulative Premium Growth Cumulative Dividend Growth 10
Slide 11: Platform strength – ensuring access to risk
Platform strength – ensuring access to risk Europe North America Global Wholesale Via Lloyd’s Long term Multi decade Long-term growth typically Growth at same rate trajectory growth journey above market trend as the market 43% % premium share 8% 22% 78% 49% Admitted Excess and surplus Growth YE24 v
Slide 12: Our underwriting
Our underwriting 4th March 2025
Slide 13: Percentage of Gross Premium
100% Active cycle 90% management – 80% growth opportunities 70% Percentage of Gross Premium from diverse 60% Specialty Risks product suite Property Risks 50% MAP Risks 40% Digital Risks Cyber Risks 30% 20% 10% 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $2,080.9m $6,164.1m 13
Slide 14: Property Risks – underwriting excellence continues to deliver
Property Risks – underwriting excellence continues to deliver • Risk selection and robust underwriting approach IWP $1,703.2m (2023: $1,351.9m) proven under the test of a challenging loss year • Long-term opportunity as changing conditions Growth 26.0% (2023: 64.2%) lead to more complexity in US pro
Slide 15: Property Risks – platform split
Property Risks – platform split Europe North America Global Wholesale Via Lloyd’s 42% % premium share 2% 0% 100% 56% Admitted Excess and surplus Growth YE24 v YE23 (13)% 38% 20% 15
Slide 16: Growing property revenue – reducing secondary peril exposure
Growing property revenue – reducing secondary peril exposure Market Loss $12bn $35 – 50bn 1,400 9% 8% 1,200 7% 1,000 6% Loss Ratio % 800 5% $m 600 4% 3% 400 2% 200 1% 0 0% 2018 2024* Insurance revenue - Property Implied wildfire Loss Ratio - Property Market loss sources: munichre-natural-catastrophe
Slide 17: Cyber Risks – market leader, continued innovation, sustainable performance
Cyber Risks – market leader, continued innovation, sustainable performance • Global systemic events during 2024 providing a IWP $1,275.9m (2023: $1,184.3m) reminder of the value of cyber insurance • Alternative reinsurance products manage our Growth 7.7% (2023: 2.3%) tail risk plus creation of hedgi
Slide 18: Cyber Risks – platform split
Cyber Risks – platform split Europe North America Global Wholesale Via Lloyd’s 54% % premium share 16% 30% 20% 80% Admitted Excess and surplus Growth YE24 v YE23 24% 10% (3)% 18
Slide 19: Specialty Risks – niche classes deliver growth
Specialty Risks – niche classes deliver growth • Niche and new liability areas delivering strong IWP $1,988.1m (2023: $1,873.4m) growth – Safeguard, environmental liability, programmes business Growth 6.1% (2023: (2.3)%) • Financial markets showing signs of improving – this will increase demand acro
Slide 20: Specialty Risks – platform split
Specialty Risks – platform split Europe North America Global Wholesale Via Lloyd’s % premium 47% share 6% 35% 65% 47% Admitted Excess and surplus Growth YE24 v YE23 (7)% 16% 0% 20
Slide 21: MAP Risks – specialism delivers as demand-led growth continues
MAP Risks – specialism delivers as demand-led growth continues • Ongoing sustainable growth in specialist areas IWP $950.3m (2023: $964.3m) of expertise: marine, aviation and political risk • Innovation to meet growing demand for energy – Growth (1.5)%* (2023: (13.5)%) renewables, fusion, carbon cap
Slide 22: MAP Risks – platform split
MAP Risks – platform split Europe North America Global Wholesale Via Lloyd’s % premium 12% share 5% 66% 34% 83% Admitted Excess and surplus Growth YE24 v YE23 20% 13% (4)% 22
Slide 23: Financial performance
Financial performance 4th March 2025
Slide 24: Exceptionally strong result – record profit second year running
Exceptionally strong result – record profit second year running YE 2024 YE 2023 % movement Insurance written premium ($m) 6,164.1 5,601.4 10.0% Net insurance written premium ($m) 5,152.3 4,696.2 9.7% Net insurance revenue ($m) 4,913.2 4,315.1 Net insurance service expense ($m) (3,677.2) (3,064.1) In
Slide 25: Prudency in reserves – continued reserve releases
Prudency in reserves – continued reserve releases Prior Year Reserve Release (Net) • Reserve releases are 2.9% 200 2023 of Net Insurance Revenue 2024 • Reserve releases 150 predominantly driven by the release of the risk Release 100 adjustment and favourable attritional claims experience $m 50 0 Str
Slide 26: Consistent reserve strength – reserves remain within preferred range
Consistent reserve strength– reserves remain within preferred range • Reserves at year-end Reserve Percentile 2024 are at the 84th 92% percentile 90% 90% • Consistent maintenance 88% of reserves within our preferred reserve 86% Target confidence range of the Range 84% 80th to 90th percentile 82% 80%
Slide 27: Strong investment return of 5.2% - highest ever absolute contribution
Strong investment return of 5.2% - highest ever absolute contribution 600.0 6% 500.0 5% 400.0 322 4% 300.0 336 3% Investment Return 93 200.0 2% $m % 104 252 100.0 170 34 1% 13 144 84 83 0.0 0% 2019 2020 2021 2022 2023 2024 (100.0) (193) (1%) (200.0) (2%) (300.0) (3%) 1st Half 2nd Half Investment Ret
Slide 28: Diversified and growing portfolio drives delivery
Diversified and growing portfolio drives delivery 45.0% 42.6% Portfolio: $11.5bn 40.0% 37.3% (31 Dec 2023: $10.5bn) 34.1% 33.6% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 7.8% 7.7% 6.5% 5.8% 5.6% 4.7% 4.2% 5.0% 2.7% 3.0% 2.1% 1.5% 0.4% 0.4% 0.0% Sovereign Debt Investment Grade Debt Cash and Cash Hedge Fund
Slide 29: Insurance finance expense
Insurance finance expense Increase Decrease Total • $55.9m insurance finance expense 0.0 is split between: • $292.1m Discount unwind (50.0) 173.6 (Expense) (55.9) • Offset by (100.0) ⎻ $62.6m impact of updating yield curves (Income) (150.0) ⎻ $173.6m change in other financial assumptions (Income) (2
Slide 30: Beazley's approach to capital
Beazley’s approach to capital Capital strategy • Our ambition is to remain above SCR ratio of 170% • Our priority is to invest in sustainable, profitable growth in a balanced, well diversified business • We factor in growth for the year ahead and opportunities which may emerge in subsequent 1-2 year
Slide 31: Active capital utilisation - special returns, growth and flexibility
Active capital utilisation - special returns, growth and flexibility SCR Coverage ratio movements between 2023 Year End and 2024 Year End* 350% Post $325m share 51% 302% 300% buyback in respect of (11%) 264% 2023 32% (27%) 250% 219% 200% 150% 100% 50% 0% Change in SCR YE 24 (gross of capital Announc
Slide 32: Resilient capital position - able to withstand external shocks
Resilient capital position - able to withstand external shocks 300% 264% Solvency Ratio illustrative sensitivities • Coverage remains strong even with 236% 250% 233% 224% a simultaneous 221% 1 in 250 event and a 50bps decrease in 200% interest rates 150% (based on estimated Solvency Capital Ratio as
Slide 33: Outlook
Outlook 4th March 2025 33
Slide 34: Outlook - opportunity in 2025 and beyond
Outlook - opportunity in 2025 and beyond Continuing era of We have a diversified Property business Cyber will continue accelerating risk portfolio with the right will see long-term to see demand-led calls for underwriting people in the right growth – focus is growth, particularly and claims expertis
Slide 35: Questions
Questions 4th March 2025 35
Slide 36: Appendices
Appendices 4th March 2025
Slide 37: Beazley is successfully compounding value over time
Beazley is successfully compounding value over time 1100% 1050% NAV target range NAV growth 1000% (RFR +10% p.a. to (Including dividends) RFR +15% p.a.) 950% 900% 850% 800% 750% 700% 650% 600% 550% 500% 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% 31 December 31 December 31 December 31 December 31
Slide 38: Other key information
Other key information Discount rates & liability mean terms • Under IFRS 17 the assets and liabilities are discounted. A • Undiscounted mean terms in years as at YE24 are shown below. bottom-up approach is used to calculate the discount rates used, These are on an ultimate basis and include all clai