Beazley Q3 growth slows again, but 2026 outlook bolstered by $500m commitment to Bermuda build-out
Global re/insurer Beazley is allocating $500 million to expand its new Bermuda platform as it positions for growth in 2026 and beyond.
Establishing a presence on the island will support its expansion into insurance-linked securities, cat bonds and other forms of risk transfer, the company said.
Adrian Cox (pictured), CEO, said: “Alongside robust underwriting discipline, we have been working on a number of initiatives. A key piece of this work is our new platform in Bermuda, which will support our expansion into the alternative risk transfer market. This will allow us to drive growth whilst maintaining margin by using our existing expertise to take advantage of new and evolving opportunities.”
Announcing its third-quarter results, Beazley shed cyber while retaining growth in property despite a dramatic downturn in rate but said margin gain was notable, enough to improve the full-year forecast.
“Market conditions are evolving at pace across several of our lines and we’ve maintained the same disciplined approach we set out at the half year,” Cox said.
An improved margin outlook comes at a cost: “As we continue to prioritise profitability over volume,” Cox said, “growth is running at the low end of our guidance and below the level we delivered in the first half.”
Written premiums fell by 1.3% year on year in the third quarter, calculations between 9M and 6M earnings releases suggested, pulling the 9M year-to-date growth down to a mere 1%.
The ongoing slowdown has put paid to a string of forecasts: Beazley had seen 2025 premium growth mid-single digit just six months ago, then low to mid-single digit three months ago, on the way to another revision for flat to low single digits as of today.
Written premiums in cyber, already down in H1 to nearly match rate erosion, showed Beazley outright shedding volumes by Q3. Written premium fell by 12.3% YoY in Q3 even as the rate trend improved fractionally from levels in H1, calculations suggested.
Beazley said it had defended prices at the July 1 renewals, but the market in America remains “very competitive” and growth is “challenging”. Europe is delivering “stronger pricing and greater scope for new business,” putting that book ahead of plan.
Property grew 4.5% in Q3 in written premium, an acceleration from 1.7% H1 growth, even as rate hit a cliff. Rates in the segment that had been still been up 3.1% YoY after H1 were down 7% YoY in the first 9M.
“The flexibility provided by our three-platform model has allowed us to focus growth efforts where rates are most adequate,” management said of continued growth in the segment.
Elsewhere, premium growth was muted in Beazley's number two division (behind property) of specialty, up 0.5% YoY in Q3 and 3.3% for the first nine months with renewal rate growth holding steady at 1%. Gains from increased capital market activity offset de-risking in lines exposed to healthcare social inflation, management said.
Premiums slipped Q3 in marine-aviation-political risks (MAP), but remain the year-to-date growth stalwart, up 6.1% despite mild softening. Management said rates look “strong in several areas across the book” and performance should hold in Q4.
The infant segment of digital, Beazley's catch-all offer for SMEs, accelerated in Q3 to a 7.3% YoY premium growth pace, calculations suggested, cutting the 9M YoY decline to 2.1%.
Management does not provide underwriting margin in its Q1 and Q3 trading statement, but did clearly suggest strength.
Natural catastrophe claims were said to be “well within the margins” following a below average hurricane season. Attritional claims returned to a “more normalised level” amid a “very active claims environment” following subdued levels H1.
Guidance for the FY2025 undiscounted combined ratio was tightened to "low 80s" from the mid-80s forecast that had held through the mid-year.
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