| Consolidated statement of profit or loss for the year ended 31 December 2022 | Notes | 2022 $m |
2021 $m |
|---|---|---|---|
| Gross premiums written | 3 | 5,268.70 | 4,618.90 |
| Written premiums ceded to reinsurers | -1,392.50 | -1,106.50 | |
| Net premiums written | 3 | 3,876.20 | 3,512.40 |
| Change in gross provision for unearned premiums | -507.3 | -545 | |
| Reinsurers’ share of change in the provision for unearned premiums | 245.3 | 179.9 | |
| Change in net provision for unearned premiums | -262 | -365.1 | |
| Net earned premiums | 3 | 3,614.20 | 3,147.30 |
| Net investment (loss)/income | 4 | -179.7 | 116.4 |
| Other income | 5 | 32.1 | 28.2 |
| Gain from sale of business | – | 54.4 | |
| -147.6 | 199 | ||
| Revenue | 3,466.60 | 3,346.30 | |
| Insurance claims | 3,046.30 | 2,734.30 | |
| Insurance claims recoverable from reinsurers | -1,089.90 | -908.1 | |
| Net insurance claims | 3 | 1,956.40 | 1,826.20 |
| Expenses for the acquisition of insurance contracts | 3 | 952.1 | 821.8 |
| Administrative expenses | 3 | 303.7 | 283 |
| Foreign exchange loss | 3 | 24 | 7.2 |
| Operating expenses | 1,279.80 | 1,112.00 | |
| Expenses | 3 | 3,236.20 | 2,938.20 |
| Results of operating activities | 230.4 | 408.1 | |
| Finance costs | 8 | -39.4 | -38.9 |
| Profit before income tax | 191 | 369.2 | |
| Income tax expense | 9 | -30.2 | -60.5 |
| Profit for the year attributable to equity shareholders | 160.8 | 308.7 | |
| Earnings per share (cents per share): | 10 | 26.3 | 50.9 |
| Basic | |||
| Diluted | 10 | 25.9 | 50.3 |
| Earnings per share (pence per share): | 10 | 21.1 | 37 |
| Basic | |||
| Diluted | 10 | 20.8 | 36.5 |
| Statements of financial position as at 31 December 2022 | 2022 | 2021 | |||
|---|---|---|---|---|---|
| Notes | Group $m |
Company $m |
Group $m |
Company $m |
|
| Assets | |||||
| Intangible assets | 12 | 128.8 | – | 123.5 | – |
| Plant and equipment | 13 | 14.9 | – | 19.2 | – |
| Right of use assets | 29 | 60.5 | – | 75.5 | – |
| Deferred tax asset | 28 | 35.2 | – | 16.3 | – |
| Investment in subsidiaries | 31 | – | 724.6 | – | 724.6 |
| Investment in associates | 14 | 0.4 | – | 0.6 | – |
| Deferred acquisition costs | 15 | 550.1 | – | 477.8 | – |
| Retirement benefit asset | 27 | 4.6 | – | 18.1 | – |
| Reinsurance assets | 19, 24 | 3,286.60 | – | 2,386.40 | – |
| Financial assets at fair value | 16, 17 | 8,345.60 | – | 7,283.50 | – |
| Insurance receivables | 18 | 1,811.70 | – | 1,696.10 | – |
| Other receivables | 30 | 196.4 | 919.1 | 106.7 | 315 |
| Current income tax asset | 11.7 | 0.3 | 11.9 | 0.7 | |
| Cash and cash equivalents | 20 | 652.5 | 3.4 | 591.8 | 0.3 |
| Total assets | 15,099.00 | 1,647.40 | 12,807.40 | 1,040.60 | |
| Equity | |||||
| Share capital | 21 | 46.6 | 46.6 | 42.9 | 42.9 |
| Share premium | 9.7 | 9.7 | 5.3 | 5.3 | |
| Merger reserve | – | 55.4 | – | 55.4 | |
| Foreign currency translation reserve | -109.4 | 0.7 | -97.2 | 0.7 | |
| Other reserves | 22 | -7.6 | -14.3 | -4 | -7.6 |
| Retained earnings | 2,634.20 | 1,545.10 | 2,183.80 | 943.2 | |
| Total equity | 2,573.50 | 1,643.20 | 2,130.80 | 1,039.90 | |
| Liabilities | |||||
| Insurance liabilities | 24 | 10,354.20 | – | 8,871.80 | – |
| Financial liabilities | 16, 17, 25 | 562.5 | – | 554.7 | – |
| Lease liabilities | 29 | 72.7 | – | 84.3 | – |
| Current income tax liability | 8.6 | – | 24.5 | – | |
| Other payables | 26 | 1,527.50 | 4.2 | 1,141.30 | 0.7 |
| Total liabilities | 12,525.50 | 4.2 | 10,676.60 | 0.7 | |
| Total equity and liabilities | 15,099.00 | 1,647.40 | 12,807.40 | 1,040.60 | |
No income statement is presented for the parent company as permitted by Section 408 of the Companies Act 2006. The profit after tax of the parent company for the period was $303.6m (2021: $37.2m).
The notes form part of these financial statements.
| Statements of financial position as at 31 December 2022 | 2022 | 2021 | |||
|---|---|---|---|---|---|
| Notes | Group $m |
Company $m |
Group $m |
Company $m |
|
| Cash flow from operating activities | |||||
| Profit before income tax | 191 | 303.3 | 369.2 | 36.4 | |
| Adjustments for: | |||||
| Amortisation of intangibles | 12 | 14.3 | – | 20.5 | – |
| Equity settled share based compensation | 22 | 15.7 | 15.7 | 11 | 11 |
| Net fair value loss/(gain) on financial assets | 4 | 274.4 | – | -45.8 | – |
| Depreciation of plant and equipment | 13 | 3.3 | – | 4.9 | – |
| Depreciation of right of use assets | 29 | 12.3 | – | 15 | – |
| Impairment/(write back) of reinsurance assets recognised | 2 | 17.8 | – | -3.3 | – |
| Increase/(decrease) in insurance and other payables | 1,868.60 | 3.5 | 1,900.80 | -3.1 | |
| (Increase) in insurance, reinsurance and other receivables | -1,105.50 | -3.4 | -950.1 | -47.1 | |
| (Increase) in deferred acquisition costs | -72.3 | – | -92.9 | – | |
| Interest and dividends received on investments | 4 | -101.1 | -305 | -76.5 | -40 |
| Finance costs | 8 | 39.4 | 4.8 | 38.9 | 3.6 |
| Income tax paid | -61.1 | – | -22.2 | – | |
| Net cash from/(used in) operating activities | 1,096.80 | 18.9 | 1,169.50 | -39.2 | |
| Cash flow from investing activities | |||||
| Purchase of plant and equipment | 13 | -1 | – | -4.5 | – |
| Expenditure on software development and other intangible assets | 12 | -22.7 | – | -17.7 | – |
| Purchase of investments | -6,645.40 | – | -7,979.10 | – | |
| Proceeds from sale of investments | 5,325.30 | – | 7,037.10 | – | |
| Proceeds from sale of business | – | – | 54.4 | – | |
| Loan to subsidiary | – | -600.7 | – | – | |
| Interest and dividends received | 4 | 94.2 | 305 | 70.6 | 40 |
| Net cash (used in)/from investing activities | -1,249.60 | -295.7 | -839.2 | 40 | |
| Cash flow from financing activities | |||||
| Acquisition of own shares in trust | 22 | -17.8 | -17.8 | – | – |
| Payment of lease liabilities | 29 | -11.6 | – | -12.8 | – |
| Equity raise | 21 | 404.4 | 404.4 | – | – |
| Finance costs | 8 | -36.3 | -4.8 | -35.2 | -3.6 |
| Dividend paid | -103 | -103 | – | – | |
| Net cash from/(used in) financing activities | 235.7 | 278.8 | -48 | -3.6 | |
| Net increase/(decrease) in cash and cash equivalents | 82.9 | 2 | 282.3 | -2.8 | |
| Cash and cash equivalents at beginning of year | 591.8 | 0.3 | 309.5 | 0.9 | |
| Effect of exchange rate changes on cash and cash equivalents | -22.2 | 1.1 | – | 2.2 | |
| Cash and cash equivalents at end of year | 20 | 652.5 | 3.4 | 591.8 | 0.3 |
The notes form part of these financial statements.
| Notes | Share capital $m |
Share premium $m |
Foreign currency translation reserve $m |
Other earnings $m |
Retained $m |
Total $m |
|
|---|---|---|---|---|---|---|---|
| Group | |||||||
| Balance at 1 January 2021 | 42.9 | 5.3 | -91.3 | -9.4 | 1,862.00 | 1,809.50 | |
| Total comprehensive (loss) / income recognised | – | – | -5.9 | – | 319.9 | 314 | |
| Equity settled share based payments | 22 | – | – | – | 11 | – | 11 |
| Tax on share option vestings | 9 | – | – | – | -3.9 | – | -3.9 |
| Transfer of shares to employees | 22 | – | – | – | -1.7 | 1.9 | 0.2 |
| Balance at 31 December 2021 | 42.9 | 5.3 | -97.2 | -4 | 2,183.80 | 2,130.80 | |
| Balance at 1 January 2022 | 42.9 | 5.3 | -97.2 | -4 | 2,183.80 | 2,130.80 | |
| Total comprehensive (loss) / income recognised | – | – | -12.2 | – | 151 | 138.8 | |
| Dividends paid | 11 | – | – | – | – | -103 | -103 |
| Issue of shares | 21 | 0.1 | 0.8 | – | – | – | 0.9 |
| Equity raise1 | 21 | 3.6 | 3.6 | – | 397.2 | – | 404.4 |
| Transfer of merger reserve to retained earnings1 | 21 | – | – | – | -397.2 | 397.2 | – |
| Equity settled share based payments | 22 | – | – | – | 15.7 | – | 15.7 |
| Acquisition of own shares held in trust | 22 | – | – | – | -17.8 | – | -17.8 |
| Tax on share option vestings | 9 | – | – | – | 3.1 | 0.6 | 3.7 |
| Transfer of shares to employees | 22 | – | – | – | -4.6 | 4.6 | – |
| Balance at 31 December 2022 | 46.6 | 9.7 | -109.4 | -7.6 | 2,634.20 | 2,573.50 |
1 In November 2022, the Company issued 60,959,017 new ordinary shares of 5 pence each, comprising the ‘Placing Shares’, the ‘Retail Offer Shares’ and the ‘Subscription Shares’. No share premium was recorded in relation to the Placing Shares as merger relief under the Companies Act was available. The premium over the nominal value of these shares was credited to a merger reserve and subsequently recognised in retained earnings as it was deemed to be distributable. Refer to Note 21 for further details.
The notes form part of these financial statements.
| Rated Entity | A.M.Best | Fitch | Standard & Poor's | |||
|---|---|---|---|---|---|---|
| Type of Rating | Rating | Type of Rating | Rating | Type of Rating | Rating | |
| Syndicate 623/2623/3622/3623 | Best Syndicate Rating | A Excellent "Positive Outlook" | ||||
| Financial Size Category | Class XV $2bn+ | |||||
| Lloyd’s Market Rating (which applies to all Beazley managed syndicates) | Lloyd's Market Rating | A Excellent "Positive Outlook" | Lloyd's Market Rating | AA- Very Strong "Stable Outlook" | Lloyd's Market Rating | AA- Very Strong "Stable Outlook" |
| Financial Size Category | Class XV $2bn+ | Issuer Default Rating | A+ "Stable Outlook" | |||
| Beazley Insurance dac (formerly known as Beazley Re Designated Activity Company) | Financial Strength Rating | A Excellent "Stable Outlook" | Financial Strength Rating | A+ "Stable Outlook" | ||
| Financial Size Category | Class XV $2bn+ | Issuer Default Rating | A "Stable Outlook" | |||
| Beazley Insurance Company, Inc. | Financial Strength Rating | A Excellent "Stable Outlook" | ||||
| Financial Size Category | Class XV $2bn+ | |||||
| Beazley America Insurance Company, Inc. | Financial Strength Rating | A Excellent "Stable Outlook" | ||||
| Financial Size Category | Class XV $2bn+ | |||||
| Beazley Excess and Surplus Insurance, Inc. | Financial Strength Rating | A Excellent "Stable Outlook" | ||||
| Financial Size Category | Class XV $2bn+ |