Key facts
- Beazley's pre-tax profit fell 53% to $237.7m in the first half of 2026.
- Written premiums decreased by 4% to $3.05bn.
- War in the Middle East and growing cyber risks are increasing payouts.
- Beazley is reducing its US cyber market exposure and shifting focus to Bermuda.
- The company is set to be acquired by Zurich for £8bn.
FTSE 100 insurer Beazley announced a significant drop in profits for the first half of 2026, with pre-tax profit falling 53% to $237.7 million compared to $502.5 million in the same period last year. The company attributed this decline to the impact of war and rising global risks on the insurance market, leading to increased payouts to customers. Insurance written premiums also saw a 4% decrease, reaching $3.05 billion.
Chief executive Adrian Cox stated that conditions in the specialty insurance market are softening rapidly, driven by geopolitical volatility and escalating cyber risks. He emphasized Beazley's disciplined underwriting approach, focusing on prudent risk selection and de-risking in unprofitable areas. The board specifically warned about excessive competition in the North American cyber market, which is driving down rates to levels that do not adequately reflect the growing risks associated with AI and geopolitical instability.
In response to these market conditions, Beazley is scaling back its presence in the US cyber market, which constituted 9% of its portfolio, and is pivoting towards Bermuda. The insurer aims to achieve $400 million in written premiums in Bermuda by 2030, focusing on areas of structural opportunity.
These results follow Beazley's agreement in February to be acquired by Zurich for £8 billion. The offer values Beazley at 1,335 pence per share, comprising a 1,310p cash payment and a potential 25p dividend. The deal, expected to close by year-end, will delist Beazley from the London Stock Exchange. The company reported $33.6 million in direct costs associated with the Zurich transaction, with an additional $56 million in contingent expenses.