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Insurer Beazley sets aside $125 million for natural disaster claims

By Reuters

– Beazley Plc has set aside $125 million to account for claims related to natural disasters, including Hurricane Ida and the European floods, the British insurer said on Friday.

The London-listed company, which provides casualty and property, cyber and political risk insurance, said it now expects combined ratio – a key measure of an insurer’s profitability – to be in the mid-90s for the year. A ratio below 100 indicates an underwriting profit.

The Lloyd’s of London insurer said gross written premiums jumped 29% to $3.27 billion for the nine months to September from a year earlier, with rates within the cyber and executive risk division surging 48%.

“I remain excited about the opportunity in the cyber market,” Beazley Chief Executive Officer Adrian Cox said in a statement. The company has been investing heavily in its cyber infrastructure.

“The momentum from the first half has persisted into the second with rate rises and premium growth that have exceeded our expectations.”

Shares in Beazley were up 2.4% at 405.8 pence by 0834 GMT.

Beazley’s rivals Lancashire and Hiscox have also posted strong premiums written this year, as British insurers get a boost from a steady improvement in rates.