Beazley PLC on Monday provided restated results for 2022, ahead its half-year earnings for 2023, due in early September.

Like its insurance industry peers, London-based Beazley will be reporting results starting in 2023 under IFRS 17, rather than IFRS 4. Going into effect from January 1 this year, the new accounting introduces the concepts of contractual service margin and risk adjustment.

CSM is related to profit recognition and timing, while risk adjustment is more focused on the certainty surrounding the amount and timing of cash flows from insurance contracts.

The change affects the timing of profit recognition, compared to IFRS 4.

‘The main changes are due to the introduction of discounting on insurance cashflows and an updated approach to both directly attributable expenses and reserving,’ Beazley explained.

Beazley said pretax profit would have been $547 million in 2022 under IFRS 17, up from $356 million under IFRS 4. For the first half of last year, it would have been $362 million, revised up from $22 million.

Net asset value per share would have been 360.8 pence per share on December 31 under IFRS 17, up from 315.6p under IFRS 4, and 313.4p on June 30, 2022, up from 274.9p.

Beazley’s combined ratio for 2022 is improved to 79% by IFRS 17 from 89% under IFRS 4. A ratio of less than 100% means profit on underwriting, so the lower the better. Beazley said the improvement was due to ‘the removal of non-directly attributable expenses and the introduction of discounting of cashflows’.

Beazley is scheduled to report its interim results for 2023 on September 7.

Shares were down 0.2% at 552.50p early Monday in London.

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