Slide 1: Analyst Seminar
Generic title white Analyst Seminar Wednesday, 30 May 2018
Slide 2: Agenda
Agenda Introduction – Andrew Horton (Chief Executive Officer) Year to date trading update – Neil Maidment (Chief Underwriting Officer) Progress on Specialty Lines International – Gerard Bloom (Head of International Financial Lines) Outlook and management changes – Andrew Horton (Chief Executive Offi
Slide 3: Year To Date Trading Update
Year To Date Trading Update Neil Maidment
Slide 4: Progress against our 2018 plan
Progress against our 2018 plan • We have seen more positive conditions in a number of lines • We are growing in 2018 • Locally underwritten US premium across SL, property and marine • Cyber demand continues to increase and GDPR comes to Europe • SL international business • Rates have increased in sh
Slide 5: US premium by product area
US premium by product area 4% 15% 18% SL - Professions SL - Healthcare 12% SL - Management Liability SL - TMB SL - Private Enterprise 14% 10% Property Marine & PAC 27% 5
Slide 6: Progress against our 2018 plan: Cyber
Progress against our 2018 plan: Cyber • US: demand for Beazley Breach response continues • Large risk: continuing to develop Vector, our joint venture with Munich Re • International: awareness is growing and we are providing information services as well as insurance solutions 6
Slide 7: Cumulative rate changes since 2008
Cumulative rate changes since 2008 - short tail catastrophe rates rising 120% 115% 110% 105% Rate change (%) 100% 95% 90% 85% 80% 75% 70% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Underwriting Year Marine Property Specialty Lines Reinsurance All divisions PAC 7
Slide 8: Progress on Specialty Lines International
Progress on Specialty Lines International Gerard Bloom
Slide 9: Vision: a $500m+ business opportunity
Vision To become and be recognised as the highest performing international specialty lines insurer We are deploying Beazley’s standard model of empowered and highly expert teams, and in addition we will seek: • To be regarded as an innovative and expert insurer for complex specialist risks providing
Slide 10: Specialty lines international presence
Specialty lines international presence • London • Paris • Singapore • Toronto • Birmingham • Munich • Miami • Montreal • Barcelona • Vancouver Birmingham, London Montreal Paris Munich Barcelona Vancouver (Europe hub) Toronto (Canada hub) Miami (Latam hub) Singapore (Asia hub) 10
Slide 11: Specialty lines international
Specialty lines international • Product Focus: • Platforms: • Lloyd’s of London: UK, Continental Europe, • Cyber Canada, Latam, Asia • Management Liability • Beazley Insurance dac: UK, Continental Europe • Financial Institutions • Healthcare • Miscellaneous & specialist professional liability • E-tr
Slide 12: Our path
Our path Speciality Lines International Beazley Approach, Specialist Products, Expert Underwriting • Providing the specialist products demanded by clients operating in a changing world • Leveraging our specialist knowledge aligned with expert underwriting and claims handling • Expanding our distribu
Slide 13: Outlook and Management Changes
Outlook and Management Changes Andrew Horton
Slide 14: Management changes
Management changes • Neil Maidment retiring after 10 years as CUO, Adrian Cox appointed as CUO from 01.01.2019 o Adrian Cox has led Specialty Lines since 2008, he also chaired our US Management Committee between 2014 and 2016 from Chicago • Specialty Lines growing into two divisions o Specialty led
Slide 15: Investment income
Investment income • Year to date investment return is minimal. Though with interest rates likely to continue to increase across the year the prospect is good for the future US govt. yields 3.5 3 2.5 Yield, % 2 1.5 1 0.5 0 2yr US govt. yield 5yr US govt. yield 15
Slide 16: Outlook for 2018
Outlook for 2018 • Premium rate increases likely to be sustained in short tail catastrophe exposed lines • Continue to find opportunities for double digit growth led by our specialty lines and catastrophe related businesses • SL International to grow significantly on both Lloyd’s and company paper •
Slide 17: Questions?
Questions? Any Questions?