Beazley records investment return of $27m for Q1 2021

Written by Adam Cadle

13/05/2021

Beazley has recorded an investment return of $27m for Q1 2021 compared to a loss of $55m in the same period last year.

The insurer said: “This was a difficult period for fixed income assets, as rising yields generated losses on these exposures. We reduced the duration of our portfolio in the first quarter, which has helped to protect asset values.

“Equities have performed well and we were able to benefit by adding to our exposures during the period,” it added. “Our hedge fund portfolio also generated a good return, helping us achieve a positive, though modest, overall return in the quarter. We expect investment returns to remain low in the near term.”

Bealzey’s fixed income portfolio yield was 0.7% at 31 March 2021 (31 December 2020: 0.6%) and the duration of the portfolio was 15 years (31 December 2020: 1.8 years).

The insurer said it remains within its preferred capital surplus range of 15-25% above the Lloyd’s economic capital requirement (ECR), allowing sufficient flexibility to take advantage of the favourable market conditions.

Gross premiums written increased by 16% to $971m (Q1 2020: $840m).

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