(Reuters) – Beazley PLC, London's first Lloyd insurer, reported the results this year, changing its mind on Brexit on Thursday, saying that Britain's departure from the EU would not pose any insurmountable challenges.
Beazley shares increased by 5%, peaking London's mid cap index after the results showed a smaller hit to 2018 profit from hurricane, typhoon, and wilderness requirements than investors feared.
The company, part of the world's oldest insurance market, warned in July last year that a "hard" Brexit could prove very expensive to the insurance sector and said it was necessary to move.
On Thursday, Andrew Horton, Beazley's chief executive, told us that over 60% of revenue comes from the United Kingdom and would not be affected by Brexit, and that it could now sign business through a Brussels subsidiary of Lloyd's. .
"We feel well placed for almost any kind of Brexit," he said.
The insider reported a 1
Rising interest rates last year in the United States damaged investment returns because the market value of the company's bonds decreased. Beazley's bond portfolio was worth $ 3.5 billion in July.
The United States Federal Reserve, however, last month, stated that its three-year impetus for tight monetary policy could end bond prices.
"2018 was not Good for us, but now that it has happened, we get higher interest rates," says Finance Manager Martin Bride.
The company said it saw opportunities to raise its premium rates with high single percentages after reporting $ 105 million in costs from last year's hurricanes and typhoons and $ 40 million in claims made by California wildfires.
Beazley said that 2018 was just "a little less eventful" after 2017, when the industry made record-breaking losses of over $ 135 billion from hurricanes, earthquakes and wildfires.
It reported a combined ratio, a measure of profitability for insurance guarantees, of 98% for 2018 compared to 99% last year. A level below 100% indicates an insurance profit.