Disciplined underwriting to deliver strong profit of $502.5m in first half of 2025

 

London, 13 August 2025

 

Beazley plc results for period ended 30 June 2025

 

•    Profit before tax $502.5m (2024HY: $728.9m)

•    Insurance written premiums increased to $3,187.1m (2024HY: $3,123.3m)

•    Undiscounted combined ratio of 84.9% (2024HY: 80.7%)

•    Return on equity (annualised) of 18.2% (2024HY: 28.4%)

•    FY guidance of undiscounted COR remains at mid-80s

•    FY premium growth guidance updated to low-to-mid single digits

 

 

 

 

 

Adrian Cox, CEO of Beazley, said:

 

"We are very proud of our overall performance. Growth of 2.0% reflects our disciplined approach and is fully aligned with our strategy of prioritising rate adequacy and long-term profitability over short-term income. This commitment to delivering strong profit through the market cycle is demonstrated by our 84.9% undiscounted combined ratio.

 

Our depth of experience in operating within a cyclical environment means we know when to take risk, and when to pull back. This phase is no exception. As ever we are focused on accessing the right opportunities, backed by the strength of our people, platforms and product set, all of which underpin our ability to adapt with confidence during periods of elevated uncertainty."

A webcast will be held at 09:00am BST on Wednesday, 13 August 2025.

 

Webcast Link:

 

https://brrmedia.news/BEZ_HY25

 

ENDS

 

For further information:

 

Investors and analysts

 

Sarah Booth

+44 (0) 207 6747582

 

Media

 

Sam Whiteley

+44 (0) 207 6747484

 

Note to editors:

Beazley plc (BEZ.L), is the parent company of specialist insurance businesses with operations in Europe, North America, Latin America, and Asia. Beazley manages seven Lloyd's syndicates and, in 2024, underwrote gross premiums worldwide of $6,164.1million. All Lloyd's syndicates are rated A by A.M. Best.

Beazley's underwriters in the United States focus on writing a range of specialist insurance products. In the admitted market, coverage is provided by Beazley Insurance Company, Inc., an A.M. Best A rated carrier licensed in all 50 states and its subsidiary, Beazley America Insurance Company, Inc. In the surplus lines market, coverage is provided by the Beazley syndicates at Lloyd's, and from 1 January 2024, also from Beazley Excess and Surplus Insurance, Inc.

Beazley's European insurance company, Beazley Insurance dac, is regulated by the Central Bank of Ireland and is A rated by A.M. Best and A+ by Fitch.

Beazley is a market leader in many of its chosen lines, which include Professional Indemnity, Cyber Liability, Property, Marine, Reinsurance, Accident and Life, and Political Risks and Contingency business.

For more information please go to: www.beazley.com

 

 

Interim results statement

 

Beazley delivered a strong profit before tax of $502.5m in the first half of 2025 (30 June 2024: $728.9m). This performance reflects our continued ability to navigate complex market conditions with discipline and agility. We achieved an insurance service result of $493.7m (30 June 2024: $558.0m), resulting in a discounted combined ratio of 80.3% (30 June 2024: 76.7%) and an undiscounted combined ratio of 84.9% (30 June 2024: 80.7%). Our investment team achieved impressive results, generating $308.5m (30 June 2024: $251.7m), equivalent to an annualised return of 5.4% (30 June 2024: 4.8%). Insurance written premium growth was 2.0% across our business (30 June 2024: 6.9%). We are pleased to report an annualised return on equity of 18.2% (30 June 2024: 28.4%).

 

 

Expert management of the market cycle

At Beazley, we continue to apply robust underwriting discipline and adapt dynamically to evolving market conditions across our portfolio. Our diversified product offering and distribution strategy gives us the flexibility to remain selective and focused on long-term profitability, even when pricing conditions are more competitive.

 

During the prolonged soft market between 2010 and 2018, rate momentum was limited and market-wide growth opportunities were scarce. Even then, our approach was one of discipline, choosing not to pursue unprofitable growth. Instead, we leaned into the future by identifying the opportunity and investing early in cyber, a class that has since become an increasingly important and complex area of specialty insurance. That foresight reflects the same judgement we continue to apply today.

 

In contrast to the previous softer cycle, there is a fundamental difference in today's environment; the claims environment is active in respect to both frequency and severity, and uncertainty is elevated. We have seen climate related natural catastrophes such as the wildfires in California, alongside heightened cyber threats including a wave of ransomware attacks which particularly impacted retailers in the UK and Europe in the first half of 2025. This has been further compounded by the continued rise of social inflation in North America, which is driving greater complexity and cost across multiple lines in the specialty insurance sector. In this context, rate discipline is essential.

 

We believe this reinforces the value of our approach: staying resolutely focused on profitability, underpinned by deep underwriting expertise. Our ability to grow selectively in order to maintain our strong performance, particularly during more competitive points of the cycle, is reflected in our Property Risks undiscounted combined ratio of 76.1% in the first half of the year (30 June 2024: 80.8%). Achieving such a strong result during a half-year period which had the second highest market-wide losses on record, reinforces our confidence in the long-term trajectory of the business whilst demonstrating our expertise and commitment to managing our aggregate in this increasingly complex area of risk.

 

Growth in recent years has been exceptionally strong, supported by a combination of increased exposure and significant rate momentum across many of our lines. These conditions were dislocated and temporary.

 

Premium growth in the first half of 2025 was 2.0% (30 June 2024: 6.9%). Whilst below prior guidance, this is reflective of our deliberate prioritisation of rate adequacy and disciplined underwriting and this evolution is entirely consistent with the nature of the insurance cycle. It is both familiar and something we know how to manage well. Our product selection strategy and prudence in reserves allows us to maintain the consistency of our financial performance, irrespective of where we are in the cycle.

 

With a diversified portfolio of over fifty products across four core divisions, and wide geographical reach through our platforms in North America and Europe as well as the global wholesale market via our Lloyd's platform, we are well-positioned to make strategic choices that support strong long-term performance and position us well for the future.

 

 

Demand for insurance drives long-term opportunity

The world is facing an increasing lack of predictability, including climate risk, geopolitical uncertainty and cyber threats. However, current insurance conditions with strong supply and elevated competition means we are in a softening market. Nevertheless, long-term demand for insurance continues to grow as businesses seek protection in an ever more complex and fast-paced risk environment.

 

Cyber insurance continues to structurally grow as demand is fuelled by visible evidence of the need for cover against the ever changing cyber threat environment. The market is not fully mature yet, and although the awareness has increased and many companies understand the importance of being protected, there are still a large number of businesses that do not yet have sufficient cyber security or insurance protection.

 

We have a strong value proposition with our Full Spectrum offering, helping organisations to build resilience by integrating proactive cyber security and intelligence from Beazley Security with "always on" monitoring as well as traditional insurance indemnification and claims management. We see a huge potential to leverage this capability to support the long-term structural growth opportunities.

 

January's wildfires in California or the flooding in Texas in July exemplify the impact of natural catastrophes. We believe that most risks are insurable in the commercial market at a sustainable price and with clear terms and conditions. We continue to invest in our property underwriting, claims and climate risk management infrastructure to support our clients. The addition of parametric expertise offers the potential of new solutions to underwriting complex property risks.

 

Parametric insurance is an important tool utilised by Humanity Insured, of which we are a founding partner. Its role is to help communities in the developing world that are on the frontline of climate change to access insurance cover to protect their livelihoods. It is a strong example of how innovation in insurance can deliver social good.

 

Innovation is always at the heart of what we do and by building out specialist products that offer a protective barrier for gaps in insurance cover, we are bringing new cover to the market and offering solutions to an increasingly complex risk landscape.

 

The energy transition is under constant development and is bringing many opportunities driven by innovation, and we continue to lean in, building out our Renewables team, with new underwriters having joined in Europe in the first half of 2025. We are looking to the future and were proud co-hosts of the Sustainable Markets Initiative at Lloyd's in June to consider commercial implementation of fusion energy projects, including the role insurance can play in the development of this exciting technology.

 

 

Underwriting performance

Cyber Risks

Growth in Europe was an ongoing focus as this area of the cyber book provided the best risk reward dynamics in the first half of the year. We have been anticipating a stabilisation of the rate environment given the continued increase in frequency and severity of claims within the wider market and began to see early signs of this at 1 July 2025 cyber renewals. Leveraging the expertise of Beazley Security and our Full Spectrum Cyber capabilities to protect our clients, coupled with our strong capital position gives us the ability to react quickly to the evolving conditions in the cyber insurance market.

 

Digital Risks

Our specialist small business offering, focused on cyber and technology business, predominantly located in North America, is experiencing the same rating dynamics as our wider cyber business. The digitisation of our business is evolving, and our focus is to ensure that we develop a technology stack that can be rolled out across our products, coupled with the ability to increase automation within each business area to improve efficiency for our brokers and clients.

 

Marine, Accident and Political (MAP) Risks

We see continued strong demand for our products in MAP Risks to meet the needs of businesses as they manage this challenging risk landscape. Strategic investment in our Renewables team, including the recent appointment of underwriting talent in Madrid, to develop our onshore capabilities, positions us well for future growth.

We are seeing positive growth in our contingency business with demand for events cover continuing to increase. Ongoing global uncertainty means we are also seeing an uptick in demand for our specialist terrorism insurance solutions.

 

Property Risks

We remain focused on disciplined underwriting in property, where market conditions remain complex. Despite a high loss environment in the first half of the year, our profitability has been supported by targeted underwriting, pricing, and exposure management controls across perils.

We've continued to refine our underwriting approach, concentrating on complex risks where we see strong margins. Enhanced analytics, underwriting discipline and deploying aggregate controls to better manage catastrophe risk have enabled us to control our exposure more effectively. In recent years, this has included increasing attachment points to reduce exposure to severe connective storm events and reducing our appetite in high-risk regions such as California.

As part of our commitment to managing tail risk and safeguarding the balance sheet, we secured additional property excess of loss reinsurance during the first half of the year. This reflects the fact that our exposure is becoming increasingly complex and volatile, and as it grows, so too does the need for robust reinsurance protection.

As cumulative rates peaked at the end of 2024, a combination of benign attritional experience and growing market capacity has led to rate pressure, with decreases in some areas exceeding broader market trends.

We remain excited about the long term opportunities in property and have further added to our team with new leadership in North America and Europe as well as the previously mentioned build-out of specialist parametric capabilities.

 

Specialty Risks

Boardrooms remained at the forefront of litigation in the first half of the year, as the business impacts of cyber attacks, AI adoption, and other emerging challenges demanded careful management and communication. We remain committed to supporting our brokers and clients with specialist Director & Officers (D&O) solutions, even as competitive market conditions persist.

Beyond our core specialist liability offerings, our niche solutions, such as Safeguard and environmental liability, continue to experience strong, demand-led growth, helping clients bridge coverage gaps in new and evolving risk areas.

We continue to carefully monitor the impact of social inflation, remaining cautious, prioritising rate adequacy, and staying alert to emerging litigation trends.

 

 

Beazley has a consistent reserving philosophy, with initial reserves being set to include a risk adjustment that may be released over time as and when any uncertainty reduces. We maintain a preferred confidence level range of between the 80th and 90th percentile. This metric gives an indication about where the reserves sit compared with the best estimate and the capital requirement. Prior year reserve development, in aggregate, has not materially impacted the half-year results.

 

As at 30 June 2025, our reserve confidence level was at the 85th percentile (30 June 2024: 88th percentile; 31 December 2024: 84th percentile), which is in the middle of our preferred confidence level range.

 

 

Insurance written premiums / Net insurance written premiums

 

 

Rate change

 

 

Expenses

The expense ratio, which under IFRS 17 includes only expenses directly attributed to insurance activities, increased to 33.6% for the first half of the year (30 June 2024: 31.6%). Non-directly attributable expenses which sit outside of the insurance result were $224.7m (30 June 2024: $160.4m). Total expenses for the first six months of the year were $1,067.7m (30 June 2024: $918.0m).

 

There have been increased expenses in the first half of the year, primarily due to higher long-term incentive costs. The Company's strong performance over the past three years has led to an increase in performance related reward, with the associated expense recognised earlier in the year compared to the prior period. In addition, we remain committed to driving scalability and long-term efficiencies, continuing to invest in our technology and data capabilities.

 

 

Investments

The investment portfolio delivered a return of $308.5m, or 2.7% in the first half of 2025 (30 June 2024: $251.7m, or 2.4% ). The elevated starting point for fixed income yields supported higher portfolio income, while a decline in US treasury yields during the period contributed positively to mark to market performance.

 

Our allocations to investment-grade and high-yield credit added value, and we increased exposure to collateralised loan obligations to take advantage of attractive credit spreads, which also generated positive returns.

 

The capital growth portfolio performed well, returning 2.0%, driven by increased exposure to equities and hedge funds. While we reduced exposure during a period of heightened macroeconomic and geopolitical risk, we subsequently reintroduced exposure as conditions evolved.

 

The yield of our fixed income investments is 4.1% with a duration of 1.6 years. We see opportunities to enhance returns by increasing exposure to investment-grade credit focused on short-dated, high-quality and liquid securities. We remain focused on matching liability risk exposures with high-quality fixed income, and taking advantage where we see opportunities to generate incremental returns across the broad investment universe in the capital growth portfolio.

 

Investment by asset type

The table below details the breakdown of our portfolio by asset class:

 

Investment performance

 

Interest rate sensitivity

The Group has conducted a sensitivity analysis of its financial assets (specifically debt and fixed income holdings) and its (re)insurance contract liabilities (being the net of reinsurance contract assets and insurance contract liabilities) to estimate the immediate impact of the movement in interest rates on profit after tax/equity for the period:

 

	Net insurance contract liabilities
	30 June 2025	31 December 2024
	$m	$m
Shift in yield (basis points)
150 basis point increase	147.4	123.4
100 basis point increase	99.5	83.2
50 basis point increase	50.3	42.1
50 basis point decrease	(51.6)	(43.2)
100 basis point decrease	(104.6)	(87.5)
150 basis point decrease	(158.9)	(133.0)

 

Capital

When deciding on the appropriate level of capital, we consider several criteria: firstly, we aim to maintain a solvency ratio in excess of 170% of solvency capital requirement (SCR). To this minimum requirement, we add capital to absorb volatility to ensure financial resilience should a 1-in-250 event occur as well as assessing the impact of interest rate movements. Finally, we consider the opportunities for growth, which encompass the business plan for the following year as well as the medium-term opportunities which may arise in the subsequent one to two years. Should any surplus capital remain after taking these factors into account, we will return this to our shareholders.

As at 31 December 2024, our Solvency II coverage ratio post-dividend and share buyback was 264%. Our capital requirement is calculated annually at each year end. The half-year position represents the additional own funds, generated in the first half of the year, to produce an estimated Solvency II ratio of 287% at 30 June 2025. This figure includes the total share buyback completed to date as well as the remaining amount of the share buyback of $500.0m which we announced on 4 March. As at 30 June, we have bought back $235.3m worth of shares through this programme.

 

 

Scenario sensitivity analysis

The table below shows the impact on the Group's estimated Solvency II ratio in the event of the following scenarios as at 30 June 2025.

 

* Based on cyber probabilistic model

** This considers the impact on the SCR in isolation to the impact on eligible own funds

 

At the end of the year, our capital requirements will be recalculated to reflect the business plan for 2026 as well as own fund generation in the second half of the year. When considered together, these factors are expected to increase our capital requirements, which will result in a decreased Solvency II ratio at 31 December 2025 when compared with 30 June 2025.

 

We are committed to deploying our capital in support of generating the best return for our shareholders. Where organic growth opportunities are limited, we explore other ways to put our capital to work which enhance and support long term value and supports structural growth.

 

 

Outlook

We are ambitious and energised about the six months ahead, and whilst reducing our growth guidance to low-to-mid single digits, reflecting current market conditions, we are pleased to maintain our undiscounted combined ratio guidance of mid-80s for the full year.

 

The first half of 2025 confirms that geopolitical uncertainty remains, technology is transforming business and the effects of climate change are ever present, all of which are creating new risks and decreasing predictability. Specialty insurance companies have an important contribution to make during this time of transition and change and our focus remains on how we can support growth by utilising our powerful expertise, managing the market cycle as pricing conditions normalise.

 

Just as our approach to underwriting needs to evolve with the external environment, we want to ensure that our business model has the flexibility to adapt to a changing risk environment. We are therefore looking at new ways to enhance our diversified platform and product set, such as additions to optimise our platform strategy, or by adding relevant capabilities which support our diversified product offering. We intend to update the market further on our plans at our Capital Markets Day in Q4.

 

Adrian Cox

 

 

Condensed consolidated statement of profit or loss for the six months ended 30 June 2025

 

 

 

Condensed consolidated statement of comprehensive income for the six months ended 30 June 2025

 

 

 

Condensed consolidated statement of changes in equity for the six months ended 30 June 2025

 

 

Condensed consolidated statement of financial position as at 30 June 2025

 

Condensed consolidated statement of cash flows for the six months ended 30 June 2025

1 Other non-cash items includes amounts relating to depreciation, amortisation and foreign exchange differences.

 

 

1 Statement of accounting policies

Beazley plc (registered number 09763575) is a public limited company incorporated in England and Wales. The condensed consolidated interim financial statements of Beazley plc ("the Group") for the six months ended 30 June 2025 comprise the parent company, its subsidiaries and the Group's interest in associates. These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, the UK-adopted International Accounting Standard, and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

 

With the exception of the amended standard outlined below, the accounting policies and methods of computation applied by management in preparing the condensed consolidated interim financial statements are the same as those applied to the consolidated financial statements as at and for the year to 31 December 2024. Note, that whilst the performance of individual business lines may be seasonal, particularly with respect to exposure to insurance losses, the Group does not consider its overall result to be impacted by seasonality.

 

The information in these interim condensed consolidated financial statements is unaudited and does not constitute annual accounts within the meaning of Section 434 of the Companies Act 2006. The External Auditor's report on the Group's Annual Report and Accounts for the year to 31 December 2024 was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not include a statement under section 498 (2) or (3) of the Companies Act 2006.

 

The preparation of condensed consolidated interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements and key sources of estimation uncertainty were the same as those applied to the consolidated financial statements as at and for the year to 31 December 2024.

 

a New and amended standards and interpretations

In these condensed consolidated financial statements, the Group has applied amendments to International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and endorsed by the UK Endorsement Board (UKEB) that are mandatorily effective for accounting periods that begin on or after 1 January 2025. The new effective amendments are:

•     Amendments to IAS 21 - Lack of Exchangeability.

 

This amendment issued by the IASB and endorsed by the UKEB has not had a material impact on the Group. The Group has not early adopted any other standard or amendment that has been issued but is not yet effective.

 

b Principal risks and uncertainties

The Group's principal risks and uncertainties are outlined in the risk management and compliance section of the Group's Annual Report and Accounts 2024 (pages 76 to 81). These are insurance, market, credit, group, liquidity, regulatory and legal, operational, and strategic risk. The Group's exposure to and management of these risks has not changed since the last reporting date.

 

Additionally, further discussion of climate change risk and how it interacts with the principal risks and uncertainties is discussed in the Task Force on Climate-Related Financial Disclosures section of Group's Annual Report and Accounts 2024 (pages 32 to 61).

 

c Going concern

The Board has reviewed the Group's current and forecast solvency and liquidity positions for the 12 months from the date that the financial statements are authorised for issue. No material uncertainty in relation to going concern has been identified. In addition, as verified by the most recent regulatory submission, the Group's capital ratios and its total capital resources are comfortably in excess of regulatory solvency requirements.

 

Based on the going concern assessment performed, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence over a period of 12 months from the date of this report being authorised for issue, and therefore believe that the Group is well placed to manage its business risks successfully. Accordingly, the condensed consolidated financial statements of Beazley plc have been prepared on a going concern basis.

 

 

2 Segmental reporting

 

The Group's reporting segments and the basis of measurement of its segmental profit or loss are consistent with those applied in the consolidated financial statements for the year ended 31 December 2024. Information on the underwriting performance of each segment in the period has been included below.

 

Cyber Risks

Insurance revenue grew by 4.2% year-on-year, supported by sustained insurance written premium growth throughout 2024. Despite an increasingly complex threat landscape, Cyber Risks delivered a strong performance, achieving a discounted combined ratio of 78.8%. Reinsurance premium allocation rose by 99.3% year-on-year reflecting the earning through of catastrophe cover purchased in the second half of 2024. The expense ratio also rose, primarily due to an increase in performance related rewards.

 

Digital

Digital performed strongly in the first half of the year, delivering a discounted combined ratio of 64.1%. This result was primarily driven by a strong claims ratio of 26.2%.

 

MAP Risks

Insurance revenue has increased by 11.9% year on year, as we continue to see a strong demand for our product set given the uncertain geopolitical environment. MAP delivered a combined ratio of 79.3%. Although an increase compared to 2024, the segment continues to deliver strong profitability demonstrating the continued rate adequacy.

 

Property Risks

Property Risks continued to perform well, delivering a combined ratio of 74.2% despite the impact of Californian wildfires in the first half of the year. This was driven by an overall reduction of 7.9 percentage points in the claims ratio year-on-year. The expense ratio rose from 34.7% to 38.1% year on year, primarily due to an increase in performance related rewards.

 

Specialty Risks

Insurance revenue grew by 6.5% year on year. We continue to carefully monitor the impact of social inflation, remaining cautious, prioritising rate adequacy, and staying alert to emerging litigation trends. The claims ratio has reduced by 1.8 percentage points compared to 30 June 2024. Offsetting this benefit was a 1.0 percentage point increase in the expense ratio, leading to a broadly flat combined ratio year on year.

 

 

 

 

 

 

 

3 Insurance revenue

 

Insurance revenue represents the total changes in the liability for remaining coverage that relate to services for which the Group expects to receive consideration. This includes the difference between the claims and other expenses expected at the beginning of the year versus those actually incurred (per Note 4), after the loss component allocation.

 

 

 

4 Insurance service expenses

 

The table below shows the insurance service expenses recognised on groups of insurance contracts issued by the Group. These are recognised in the statement of profit or loss as they are incurred.

 

 

 

5 Net expenses from reinsurance contracts held

 

The table below shows the net expenses from reinsurance contracts held, comprised of the allocation of reinsurance premium and amounts recoverable from reinsurers for incurred claims.

 

 

 

6 Net financial result

 

Finance income/expense from insurance contracts issued and reinsurance contracts held represents the interest accreted and the effect of changes in discount rates and other financial assumptions. The net financial result comprises the Group's net investment income and its net insurance finance income/expense.

 

Investment income by category of financial asset

The tables below show the Group's investment income, split by category of financial asset. 'Other financial assets' includes Cash and cash equivalents and Derivative financial assets.

 

 

 

 

 

7 Other income

 

•     Income from third-party syndicates primarily relates to managing agent fees and commissions received from non-Group syndicates by Group service companies writing business on their behalf.

•     Managing agent profit commissions are amounts paid by third-party syndicates to their managing agent, Beazley Furlonge Limited. The commissions represent a fixed percentage on profit by underlying year of account.

•     Cyber services income represents the revenue generated from the Group's cyber risk management services.

 

 

8 Operating expenses

¹ Presented net of recharges to third-party syndicates.

 

 

9 Finance costs

 

 

10 Tax expense

	6 months ended 30 June 2025	6 months ended 30 June 2024	Year to 31 December 2024
	$m	$m	$m
Current tax expense	123.0	152.7	219.3
Prior year adjustment	(10.5)	8.5	14.2
Pillar Two tax expense	4.6	8.7	13.1
Current tax expense	117.1	169.9	246.6
Origination and reversal of temporary differences	(30.8)	(13.8)	50.8
Prior year adjustments	(4.1)	1.2	(4.2)
Deferred tax (credit)/expense	(34.9)	(12.6)	46.6
Tax expense	82.2	157.3	293.2

	6 months ended 30 June 2025	6 months ended 30 June 2024	Year to 31 December 2024
	$m	$m	$m
Deferred tax asset	217.9	105.9	191.8
Deferred tax liability	(376.9)	(245.6)	(387.2)
Net deferred tax liability	(159.0)	(139.7)	(195.4)

 

 

Effective tax rate

Tax for the period to 30 June 2025 has been charged at a rate of 16.4% (30 June 2024: 21.6%; 31 December 2024: 20.6%). For the current year, this represents the best estimate of the average effective tax rate expected for the full year, applied to the pre‑tax income of the six-month period. The effective tax rate is lower than in 2024 primarily due to a prior year adjustment following a change in estimate of foreign tax credits receivable.

Global minimum tax rate (Pillar Two)

The Group incurs additional tax in Ireland above the statutory corporation tax rate of 12.5% as a result of the qualified domestic minimum top-up tax enacted by the Irish Government which applies a 15% minimum tax rate to in-scope companies. The expected amount payable is included in the table above. The Group expects any top-up tax payable in other jurisdictions in which it operates to be immaterial.

 

The Group has applied the temporary mandatory exemption from accounting for deferred taxes under the Pillar Two rules. Therefore, no deferred taxes have been recognised by the Group in relation to the Pillar Two rules.

 

 

11 Earnings per share

 

Basic earnings per share is calculated by dividing profit after tax by the weighted average number of shares in issue. Diluted earnings per share is calculated by dividing profit after tax by the adjusted weighted average number of shares in issue. This assumes conversion of dilutive potential ordinary shares, being shares from equity settled employee compensation schemes. Note that both calculations exclude the shares held in the Employee Share Options Plan of 7.4m as at 30 June 2025 (30 June 2024: 8.8m; 31 December 2024: 9.1m) until such time as they vest unconditionally with the employees.

 

When calculating the weighted average number of shares in issue over the reporting period, the purchases under the share buyback scheme (see Note 15) were considered on a daily basis. The overall effect of the buyback was a reduction by 7.5m in the average number of shares on both a basic and diluted basis, offset by the issuance of 2.6m shares relating to employee share schemes and the Beazley employee benefit trust on a basic basis (2.9m diluted).

 

Further details of equity compensation plans can be found in the Group's Annual Report and Accounts 2024. Refer to Note 23 on page 220 and the Directors' remuneration report on pages 135 to 157.

 

 

12 Dividends per share

 

No dividend has been declared in respect of the six months ended 30 June 2025 (6 months ended 30 June 2024: nil).

 

A dividend of 25.0p per ordinary share was paid to eligible shareholders on 2 May 2025 in respect of the year ended 31 December 2024.

 

 

13 Financial assets and liabilities

 

Financial assets - carrying values

Set out below are the carrying values of the Group's Financial assets at fair value per the statement of financial position. These amounts exclude Cash and cash equivalents and Other receivables which are carried at amortised cost and presented separately.

 

 

The fair value of these assets at 30 June 2025 excludes an unfunded commitment of $32.0m (30 June 2024: $30.2m 31 December 2024: $33.6m).

 

Financial liabilities - carrying values

Set out below are the carrying values of the Group's Financial liabilities per the statement of financial position. These amounts exclude Lease liabilities and Other payables which are carried at amortised cost and presented separately.

 

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy described as follows. If the inputs used to measure the fair value of an asset or a liability could be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

 

Fair value is the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the measurement date. Fair value is a market-based measure and in the absence of observable market prices in an active market, it is measured using the assumptions that market participants would use when pricing the asset or liability.

 

The best evidence of the fair value of a financial instrument at initial recognition is the transaction price, i.e. the fair value of the consideration given or received, unless the fair value of that instrument is evidenced by comparison with other observable current market transactions in the same instrument (i.e. without modification or repackaging) or based on a valuation technique whose variables include only data from observable markets. When the transaction price provides the best evidence of fair value at initial recognition, the financial instrument is initially measured at the transaction price and any difference between this price and the value initially obtained from a valuation model is subsequently recognised in profit or loss depending on the individual facts and circumstances of the transaction but before the valuation is supported wholly by observable market data or the transaction is closed out.

 

Level 1 - Valuations based on quoted prices in active markets for identical instruments. An active market is a market in which transactions for the instrument occur with sufficient frequency and volume on an ongoing basis such that quoted prices reflect prices at which an orderly transaction would take place between market participants at the measurement date.

 

Level 2 - Valuations based on quoted prices in markets that are not active, or based on pricing models for which significant inputs can be corroborated by observable market data, directly or indirectly (e.g. interest rates and exchange rates). Level 2 inputs include:

•     Quoted prices for similar assets and liabilities in active markets;

•     Quoted prices for identical or similar assets and liabilities in markets that are not active, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly;

•     Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves observable at commonly quoted intervals, implied volatilities and credit spreads); and

•     Market corroborated inputs.

Included within level 2 are government bonds and treasury bills, equity funds and corporate bonds which are not actively traded, hedge funds, collateralised loan obligations and senior secured loans.

 

Level 3 - Valuations based on inputs that are unobservable or for which there is limited market activity against which to measure fair value. The availability of financial data can vary for different financial assets and is affected by a wide variety of factors, including the type of financial instrument, whether it is new and not yet established in the marketplace, and other characteristics specific to each transaction. To the extent that valuation is based on models or inputs that are unobservable in the market, the determination of fair value requires more judgement. Accordingly the degree of judgement exercised by management in determining fair value is greatest for instruments classified in level 3. The Group uses prices and inputs that are current as of the measurement date for valuation of these instruments.

 

a) For the Group's level 2 government-issued bonds and corporate bonds, prices are derived from Bloomberg. On a monthly basis, these are validated against both internal sources and prices provided by our administrator.

 

b) For the Group's level 2 collateralised loan obligations, our fund administrator provides daily pricing derived from a market‑accepted theoretical model using data sourced from Bloomberg/Reuters as inputs. On a monthly basis, prices from our administrator are validated against those provided by our custodians. These are also checked internally for consistency.

 

c) For our hedge funds, the pricing and valuation of each fund is undertaken by administrators in accordance with each underlying fund's valuation policy. Individual fund prices are communicated by the administrators to all investors via the monthly investor statements. The fair value of the hedge fund portfolios are calculated by reference to the underlying net asset values of each of the individual funds. Our hedge funds are managed by Falcon Money Management Holdings Limited, an associate of the Group.

 

d) Subordinated debt fair values are based on quoted market prices and exclude accrued interest payable.

 

Valuation approach - level 3 instruments

a) Our illiquid fund investments are generally closed-ended limited partnerships or open-ended funds. The Group relies on a third party fund manager to manage these investments and provide valuations. Note that while the funds report with full transparency on their underlying investments, the investments themselves are predominantly in private and unquoted instruments. The valuation techniques used by the fund managers to establish the fair values therefore require a degree of estimation. For example, these may incorporate discounted cash flow models or a more market-based approach, whilst the main inputs might include discount rates, fundamental pricing multiples, recent transaction prices, or comparable market information to create a benchmark multiple.

 

b) Syndicate loans are non-tradeable instruments provided by our Group syndicates to the Central Fund at Lloyd's in respect of the 2020 and 2019 underwriting years. The 2019 loan was repaid by Lloyd's in the first half of 2024, and a tranche of the 2020 loan was repaid by Lloyd's in June 2025. We expect all loans to be repaid by 31 December 2025.

 

These loans are valued internally using discounted cash flow models provided by Lloyd's to the market, designed to appropriately reflect the credit and illiquidity risk of the instruments. Valuation outputs are then validated using a control model, with the following inputs and assumptions. Note that these internally valued instruments are deemed by management to be inherently more subjective than external valuations.

•     Cash flows are comprised of the notional cost of the loans, annual interest income, and the final repayment of the loans at the end of the five-year term. The interest rate applied to the remaining tranche of syndicate loans is 3.3% (30 June 2024: weighted average 3.7%; 31 December 2024: weighted average 3.8%).

•     The discount rate applied to the remaining tranche of syndicate loans is 7.9% (30 June 2024: weighted average 9.2%; 31 December 2024: weighted average 8.3%). This is calculated using a combination of the long-term treasury bond risk‑free rate, the industry/geographic average regression beta and a selected risk premium.

 

c) Certain collateralised loan obligation securities are classified within level 3. These represent instruments which were issued late in the period and are priced at par, predominantly as these had not settled at the balance sheet date. As this is deemed to be an unobservable input these are classified within level 3. These instruments move into level 2 as they begin to be priced by our pricing vendors using models with observable market inputs.

 

A 10% decrease in the fair value of the Group's level 3 financial assets would result in a reduction of $16.2m in profit after tax/equity for the period (30 June 2024: reduction of $18.9m; 31 December 2024: reduction of $23.0m).

 

There were no changes in the valuation techniques during the year compared to those described in the Group's 2024 Annual Report and Accounts.

 

The following tables show the fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. The fair value of the Group's subordinated debt excludes any accrued interest to allow comparability with the carrying value in the Group's financial statements. The Group's cash and cash equivalents, other receivables, lease liabilities and other payables have been excluded from these tables. These instruments are measured at amortised cost and their carrying values are deemed to be reasonable approximations of fair values at the reporting date.

 

 

13d Transfers

The Group determines whether transfers have occurred between levels in the fair value hierarchy by assessing categorisation at the end of the reporting period. The following transfers between levels 1 & 2 for the period ended 30 June 2025 reflect the level of trading activities including frequency and volume derived from market data obtained from an independent external valuation tool.

 

The below transfers between level 3 & 2 for the period ended 30 June 2025 represent the collateralised loan obligations which were issued in late 2024 and had not settled at the balance sheet date. As such, they were classified as level 3 at 31 December 2024 and have moved to level 2 as at 30 June 2025 as our pricing vendors have begun to use models with observable market inputs to price these securities.

 

 

There were no transfers into or out of level 3 in the six months ended 30 June 2024 or year ended 31 December 2024.

 

The values shown in the transfer tables above are translated using foreign exchange rates as at 30 June 2025.

 

The table below shows a reconciliation from opening to closing of the Group's level 3 investments. All realised and unrealised gains/(losses) are recognised through Net investment income in the statement of profit or loss (refer to Note 6).

 

 

The tables below show the credit ratings of the Group's financial assets at fair value and cash and cash equivalents. Credit ratings are determined by taking the average of the ratings sourced from three major agencies (A.M. Best, Moody's and Standard & Poor's). Financial investments falling within the unrated category are those for which there is no readily available market data to allow classification within the respective tiers.

 

 

*We have re-presented the above disclosure compared to what was included in Note 29 of the 2024 Annual Report and Accounts to give further detail on the credit profile of our investments. As a result of this change, we have restated $100.1m of fixed and floating rate debt securities that were previously disclosed as unrated. These are now disclosed as AAA rated Government-issued debt securities.

 

 

14 Insurance and reinsurance contract assets and liabilities

 

 

i) Insurance contracts issued

The table below sets out the estimated present value of future cash flows, the risk adjustment for non-financial risk and the contractual service margin (CSM) for insurance contracts issued.

 

 

ii) Reinsurance contracts held

 

 

i) Insurance contracts issued

The table below analyses insurance contract assets and liabilities between the liability for remaining coverage (LRC) and the liability for incurred claims (LIC) for insurance contracts issued.

 

 

ii) Reinsurance contracts held

 

 

The tables below show when the Group expects to release the closing CSM to the profit or loss, in appropriate future time bands which are based on calendar years (i.e. 1 January to 31 December). They are presented for both insurance contracts issued and reinsurance contracts held.

 

 

 

14d Changes in accounting estimates

Insurance and reinsurance contract assets and liabilities included within the Group's statement of financial position are made up of multiple components. The LRC includes an element of the present value of future cash flows, a risk adjustment for non‑financial risk and the CSM. The LIC includes the remainder of the present value of future cash flows and a risk adjustment for non-financial risk. For portfolios of issued insurance contracts that are onerous, a loss component is included within the LRC and recognised in profit or loss upon initial recognition. No loss component is recorded for reinsurance contracts held.

 

The present value of future cash flows is sensitive to changes in accounting estimates, in particular the estimation of future cash flows which are made on a best estimate basis, and discount rates. As estimates of premiums, expenses and claims change, this is reflected within the present value of future cash flows, in addition to the incorporation of cash flows relating to new business and crystallisation of expected cash flows relating to in-force business. The risk adjustment changes as amounts are released from in-force business, offset by the recognition of new business and any changes to the cost of capital applied. For an explanation of how amounts have moved in the year as a result of changes in cash flows and amounts recognised in profit or loss, refer to Note 2.

 

Future cash flows

The Group has estimated the amount, timing and probability of future cash flows. Estimates are formed by applying assumptions about past events, current conditions and forecasts of future conditions. These have been outlined below:

•     Future expected premium cash flows are based on data entered into underwriting systems. These have a level of estimate embedded for certain contracts, with payment/settlement patterns used to determine timing.

•     Gross and reinsured claims payments are determined using an approach whereby cash flows are set at a Year of Account (YoA) and reserving class level based on the latest quarterly reserving exercise.

•     Expenses are deemed to be within the contract boundary, and therefore included in the cash flows, when these are directly attributable to fulfilling insurance contracts.

•     Lapses/cancellations are projected by applying assumptions determined through statistical measures based on the Group's experience. These vary by product type, policy duration and sales trends.

 

Discount rates

The discount rates applied to expected future cash flows in measuring insurance contract liabilities have been determined using the bottom-up approach. This method takes the risk-free rates and adjusts for an illiquidity premium.

•     Risk-free rates are derived using government yield curves denominated in the same currency as the product being measured, which are sourced from Moody's. These are based on quarter-start and quarter-end rates.

•     The Group's illiquidity premium is also sourced from Moody's and adjusted to reflect the Group's own asset portfolio. This represents the differences in the liquidity characteristics between the financial assets used to derive the risk-free yield and the insurance contract liability characteristics. The illiquidity premium applied by management is a flat percentage which varies by currency. For the USD discount rate, which is the dominant currency of the Group, as at 30 June 2025 this was 0.4% (31 December 2024: 0.3%; 30 June 2024: 0.3%).

 

 

 

 

Risk adjustment

Estimation of the risk adjustment for non-financial risk is based on various inputs and assumptions, particularly relating to non-financial risk components of the solvency capital requirement from the Solvency II internal model, which captures all material exposure elements for the Group. IFRS 17 does not prescribe a specific methodology for the calculation of the risk adjustment for non-financial risk, and the Group has elected to use a cost of capital approach. This is determined by comparing the required return by each class of business within the internal model. Our overall cross-cycle return on capital target is 15%. Projected capital amounts are derived from the annual business plan, with adjustments made to factor in emerging risks and uncertainties. The risk adjustment therefore differs between portfolios depending on the inherent risk associated with each.

 

Diversification is considered between business types (to allow for negative/positive correlation between risks) and between years (to allow for the different kind of risk written across years).

 

The risk adjustment calculations as defined above are performed on a net basis, and the resulting risk adjustment percentage is then applied separately to insurance contracts issued and reinsurance contracts held.

 

The reserve confidence level determined by the actuarial department is considered as part of a quarterly reserve review exercise. These meetings are attended by senior management, senior underwriters, and representatives from actuarial, claims and finance. The reserve confidence level was deemed to be at the 85th percentile at 30 June 2025 as per output from the latest governed reserve review (30 June 2024: 88th percentile; 31 December 2024: 84th percentile) at the balance sheet date. This is in line with the preference that the Group maintains a reserve confidence level in the 80th to 90th percentile range.

 

 

15 Other reserves

 

On 4 March 2025, Beazley plc announced to the market its intention to return up to $500.0m of surplus capital to its shareholders through a share repurchase programme running to 28 February 2026. Purchases began on 5 March 2025 and at the balance sheet date, 19.7m ordinary shares had been purchased for a total consideration of $235.3m. Of these, 0.4m or $4.8m were held as treasury shares at the balance sheet date and were cancelled by 2 July 2025. At 30 June 2025, there were 622.2m ordinary shares in issue.

 

The purchase price of shares, plus directly attributable transaction costs of $1.5m (such as stamp duty, commissions, legal costs and registrar fees), are recognised through retained earnings. On their cancellation, the nominal value of the ordinary shares is deducted from share capital and the equivalent amount is recognised within the capital redemption reserve.

 

 

16 Related party transactions

 

Aside from the changes noted below, the related-party transactions of the Group are consistent in nature and scope with those disclosed in Note 31 of the Group's Annual Report and Accounts for the year ended 31 December 2024.

•     From 1 January 2025, several of the Group's insurance carriers entered into a quota share reinsurance agreement on certain lines of Cyber business with syndicate 6107, a syndicate managed by the Group's Lloyd's managing agent, Beazley Furlonge Limited, whose capital is provided entirely by third parties.

•     During the period, the Group's European insurance carrier, Beazley Insurance dac, entered into agreements to cede portions of specific classes of business to syndicate 5623, a syndicate managed by Beazley Furlonge Limited.

•     For the 2025 YoA, the Group is providing 25.0% capacity to syndicate 5623 (2024 YoA: 20.0%).

•     For the 2025 YoA, Beazley Staff Underwriting Limited is providing 5.4% of capacity to syndicate 623 (2024 YoA: 9.5%). This is a result of a reallocation of capacity between corporate members in the Group, and is offset by an increase in the percentage of premium written by syndicate 2623 (wholly Group capital) in parallel with syndicate 623.

 

 

17 Contingencies

On 30 May 2025, the Group renewed its syndicated short-term banking facility under which $450.0m may be utilised as letters of credit (LOC) placed as funds at Lloyd's (FAL) to provide capital support for the Group's underwriting at Lloyd's. Under the renewal terms, the cost of the facility is based on a commitment fee of 0.4725% per annum for any undrawn amounts; any amounts drawn as LOC are charged at a margin of 1.10% per annum. Any amounts drawn as cash are charged at a margin of 1.35% per annum above a reference rate. As at 30 June 2025, $225.0m (30 June 2024: $225.0m; 31 December 2024: $225.0m) has been issued as LOC and is being utilised to support FAL requirements. No amounts have been drawn as cash (30 June 2024: $nil; 31 December 2024: $nil).

 

18 Subsequent events

From 1 July 2025 until the approval of these interim financial statements on 12 August 2025, Beazley plc purchased 6.0m of its ordinary shares for a consideration of $72.3m pursuant to the Share Buyback programme announced on 4 March 2025. Of these shares, 5.6m were cancelled by 12 August 2025. The remaining 0.4m are held in treasury and will be cancelled in due course.

 

 

Alternative performance measures ("APMs")

 

Beazley plc uses APMs to help explain its financial performance and position. These measures are not defined under IFRS. The Group is of the view that the use of these measures enhances the usefulness of our financial reporting and allows for improved comparison with industry peers. We previously included as an APM the "CSM sustainability index", calculated as the closing CSM divided by the opening CSM. We have decided to discontinue the disclosure of this APM as we do not consider this provides useful information in assessing the Group's financial performance.

 

Information on APMs used by the Group is set out below. Unless otherwise stated, amounts are disclosed in millions of dollars ($m).

 

Insurance written premiums & net insurance written premiums

Insurance written premiums ($m) is calculated by deducting the reinstatement premiums and profit commissions from the gross premiums written. Net insurance written premiums ($m) is calculated by adding insurance ceded premiums to this result. These APMs represent management's view of premiums written in each period. The primary difference between insurance written premiums and insurance revenue relates to the deferral and earning of income over the period in which coverage is provided.

 

 

 

 

Claims, expense & combined ratios

Claims ratio (%) is calculated as insurance service expenses less directly attributable expenses, net of reinsurance recoveries, divided by insurance revenue net of reinsurance ceded revenue. Expense ratio (%) is calculated as the sum of insurance acquisition cash flows amortisation and other directly attributable expenses, divided by insurance revenue net of reinsurance ceded revenue. Combined ratio (%) is calculated as insurance service expenses net of reinsurance recoveries, divided by the insurance revenue net of reinsurance ceded revenue. This is also the sum of the claims and expense ratios. The combined ratio below is shown with and without the impact of discounting.

 

¹ Directly attributable expenses are comprised of insurance acquisition cash flows amortisation and other directly attributable expenses within Insurance service expenses, combined with other incurred directly attributable expenses within Amounts recoverable from reinsurers for incurred claims per Note 2.

 

Net assets per share & net tangible assets per share

Net assets per share is the ratio (in pence and cents) calculated by dividing the net assets or total equity of the Group by the number of shares in issue at the end of the period, excluding those held by the employee benefits trust. Net tangible assets per share excludes intangible assets from net assets in the above calculation.

 

 

Return on equity

Return on equity (%) is calculated by dividing the consolidated profit after tax by the average equity for the period, calculated as the average of the opening and closing equity positions.

 

Investment return

Investment return (%) is calculated by dividing the net investment income by the average financial assets at fair value and cash and cash equivalents held by the Group over the period.