Statement of the Chair

We are a global company operating from 25 offices around the world. Through our wholesale platforms based in London, Miami and Singapore, we underwrite 53% of our Group premium. North America and European platforms contribute 40% and 7% respectively. In 2023, we further strengthened our global outreach with the appointment of Fred Kleiterp to lead our future strategic vision for Europe, plus the establishment of our onshore excess and surplus (E&S) carrier in the US, which commenced underwriting in January 2024.

We continue to manage the risk of a changing climate; harnessed to the real opportunities which energy transition will bring. I was pleased that we were able to present more detail on this at our Capital Markets’ Day in late November 2023.

Our focus is on how, by better understanding the underlying risks ourselves, we can support clients to adapt in ways that will not only reduce their business risks but will actively protect our environment from the worst impacts of climate change.

As a specialty insurer, our business adds most value where things are complex, volatile or changing. Evidence of our commercial prowess is seen in the fact that we lead 87% of the business that our firm underwrites. 

For instance, in the last 18 months the property insurance market has understood that inflationary pressures, demographics and climate change mean that as a class of insurance it should no longer be commoditised. Instead property insurance requires considerable underwriting skill; a reality that since the start of 2023 has been reflected in pricing; terms and conditions. This change has seen us lean into property with Property Risks premiums increasing 64% year on year. We are grateful to our shareholders who enabled us to seize this opportunity, by supporting our November 2022 capital raise.

We have built a global underwriting model which allows us to capitalise on opportunities or pause when markets become unprofitable. This protects both our strategic growth agenda and the interests of our clients. 

We have an innovative, disciplined, underwriting led approach to developing products to solve real world problems. We combine this with a 'claims ecosystem' that consistently wins praise. In 2023 we were also proud to win the Gracechurch award for claims excellence for the eighth time in a row.

This report marks the culmination of the first year of reporting under IFRS 17. The Board was kept fully informed of the progress of implementation throughout the year via regular updates and interactions through its Audit Committee. It was clear throughout, that it has been a challenging process and I would like to thank everyone across the business for their tireless efforts to ensure the successful introduction of the new accounting standard.

On 1 March 2024 we welcomed Carolyn Johnson as Chair of our growing US operations and to the Beazley Plc Board. Her appointment to the Board is designed to strengthen our corporate structure with diverse and industry experienced colleagues of her calibre.

Christine LaSala has signalled her intent to step down from the Board, where she is the Senior Independent Non-Executive Director, at the conclusion of the 2024 AGM. I would like to thank Christine for her valuable input into the Company and the Board over her tenure, perhaps most notably when she stepped up as Interim Chair for six months in late 2022.

Our 2023 interim results presentation in September set out in greater detail how we think about and plan our capital management. This was a clear statement of our intent to protect your company by maintaining a prudent capital surplus above 170% of the Solvency Capital Ratio. We will manage key underwriting risks’ exposure to equity (for example, natural catastrophe risk to a 1:250 event) and consideration of the prospects for profitable deployment of capital generated into the Company’s future. These considerations will be balanced versus appropriate returns of excess capital to shareholders.

With this approach to capital management in mind I am pleased to say that the Board has proposed an ordinary interim dividend of 14.2p for the full year, we are also pleased to announce a share buyback programme of up to $325m.

We are an ambitious company that will deliver what we promise. This is at the core of the Company's commit and deliver philosophy, based on living up to our values and is the source of our competitive advantage. It enables our clients to explore, create and build their businesses, whilst positioning Beazley for success as a leader in our market.

I want to thank our clients, brokers and shareholders for their support over the last 12 months. The strength of our financial result reflects intelligent navigation of the risky world in which we all live and ensures we are here to support our clients and brokers in the future. As a leading, global, sustainable, specialty insurer we are in the risk business, but as shown this year, with risk comes reward.