Beazley plc (BEZ) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

good morning and welcome to beasley's 2025 q3 trading update if you would like to ask a question during today's call please signal by pressing star 1 on your telephone keypad i will now hand over to chief executive officer adrian cox please go ahead Thank you. Well, good morning everyone and welcome to Beazley's Q3 IMS. I will cover the key points of the quarter's performance and then move to questions. So our year-to-date growth is now at 1%, and the key drivers of this reduction have been in cyber and property. At the interim presentation in August, I said that in some important segments for us, and I was referring particularly to DNO cyber and property, markets were getting a lot less frothy, and this was anticipated to make it easier to grow in the second half. The evidence for this was that DNO rate reductions were beginning to ease after three years of very public softening, that we had successfully pushed for flat rates during the important North American July renewal season in cyber, which we believe is necessary given the increased levels of cyber crime and liability claims the market has experienced since 2023, and that property rate reductions had also eased following a very aggressive second quarter. However, that prediction did not come true. The DNR property markets are still very competitive. And despite the fact that we believe the US cyber market is now unprofitable, given that very active claims environment, it continues to soften. It is notable, I think, that premium growth in the E&S market as a whole has slowed. For example, E&S stamping premiums in California, Texas, Illinois and Florida were flat year on year in Q3, having been growing increasingly more slowly over the year. We therefore have reacted accordingly, maintaining our underwriting st...