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Investing.com -- Beazley shares fell more than 10% on Tuesday after the London-based insurer reported weaker-than-expected third-quarter premium growth and lowered its 2025 top-line outlook.
The company’s third-quarter written premiums totaled $1.48 billion, down 1.3% from a year earlier and 5% below Morgan Stanley estimates.
The brokerage described the performance as “top line growth disappointing.” It added that the quarterly print came in “materially below our expectations” because of shortfalls in Cyber and Marine, Accident and Political segments.
Beazley cut its 2025 premium growth guidance to flat to low single-digit growth, replacing a prior view that called for stronger expansion.
The brokerage said the company also raised its 2025 combined operating ratio guidance to the low 80s range from the mid-80s, noting that this “should be largely expected given a benign Q3 (and Q4-to-date) environment.”
Cyber insurance, one of the group’s largest businesses, recorded a 12% decline in premiums in the quarter.
The company said “competition in the US continues to be a challenge,” though it noted that “the European cyber book is a bright spot and should remain a source of strong growth.”
The analysts said the Marine, Accident and Political segment showed further top-line weakness, with growth slowing to 0.6% decline compared with 8.9% growth in the first half of the year.
Property Risks was the only business unit that exceeded expectations, coming in 2.5% above the forecast.
Beazley announced a $500 million capital investment to build a new Bermuda platform beginning in 2026.
The brokerage said the move supports a “drive into the alternative risk market,” though it added that the release contained “minimal details.” It also described the initiative as “a natural step for Beazley,” while stating that “$500m is a sizeable sum.”
Investment return for the quarter reached $150 million, above the $135 million Morgan Stanley expected but below the $261 million recorded a year earlier.
The company posted a negative $73 million in investment fund income and expenses. The core investment portfolio ended the period at $10.35 billion, and capital growth assets totaled $1.37 billion.
Morgan Stanley maintained an “overweight” rating on the insurer’s shares, with a 960p price target. Beazley closed at 860p on Nov. 24, within a 52-week range of 984p to 756p.