Shares in insurer Beazley (BEZ) drifted 2.2% to 487p despite the firm announcing better than expected full year results.
Profit before tax was $369.2 million for the full year 2021, representing a 19% beat versus market expectations. The dividend of 12.9p was 11.2% ahead of consensus.
Beazley, which provides casualty and property, cyber and political risk insurance, had a combined ratio, a key metric of profitability, of 93% compared to 109% a year earlier. A figure below 100% indicates an underwriting profit.
CYBER ADVANTAGE
Beazley has benefited from exposure to cyber insurance, the most exciting growth opportunity in the market. Cyber attacks are becoming an increasing concern amongst corporates with management becoming increasingly aware that insurance cover is inadequate.
Beazley has the greatest exposure to cyber insurance amongst global listed insurers, accounting for 15% of gross written premiums.
Beazley Breach Response, the group’s signature product, protects clients from malware, ransomware and other cyber threats and has provided Beazley with a first mover advantage in the sector.
NUMIS VIEW
According to Numis analyst Nick Johnson, ‘We think these are impressive results that should be positive for sentiment?Beazley remains our top pick in the sector’.
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