Beazley
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The carrier predicts 2020 underwriting profitability and below-average reserve releases.
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(Re)insurance executives gathered in EC3 this week for the Insider London conference.
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Delegates were told that the industry needs to adapt to the changing global outlook.
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The Beazley chief says social inflation is not a new phenomenon.
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The equity research firm said Beazley and Hiscox would be challenged by their casualty exposure.
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The decision does not affect the carrier’s main London market marine offering.
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The reinsurance partnership would support the expansion of Beazley’s fast-growing affirmative cyber book.
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Hiscox outpaces the FTSE 100, while Lancashire and Beazley fail to match the FTSE 250 growth.
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Kamran Hossain rates the stock “outperform” rather than a “top pick”.
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The partnership, which offered a $100mn line size, will no longer accept new business.
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Analyst Philip Kett says the carrier has already recognised a large amount of required reserving linked to its US casualty book.
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Canaccord Genuity now expects Beazley’s earnings to be 25 percent lower than its previous forecast this year.
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