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Beazley PLC (GB:BEZ)
LSE:BEZ
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Beazley
(LSE:BEZ)
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Rating:78Outperform
Price Target:
957.00p
▲(13.66% Upside)
Beazley's strong financial performance and positive earnings call are the most significant factors driving the score. The company's solid cash flow and strategic management provide stability and growth potential. Technical indicators suggest caution, but the valuation remains attractive.
Beazley (BEZ) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£5.03B
Dividend Yield2.97%
Average Volume (3M)3.33M
Price to Earnings (P/E)7.0
Beta (1Y)0.80
Revenue Growth6.00%
EPS Growth-24.29%
CountryUK
Employees2,419
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)0.49
Shares Outstanding606,866,760
10 Day Avg. Volume3,059,776
30 Day Avg. Volume3,330,111
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)1.49
Price to Sales (P/S)1.16
P/FCF Ratio12.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,013.50Price Target Upside20.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Beazley Business Overview & Revenue Model
Company DescriptionBeazley plc provides risk insurance and reinsurance solutions in the United States, Europe, and internationally. Its Cyber & Executive Risk segment underwrites management liabilities, such as employment practices risks and directors and officers, cyber and technology, and media and business services. The company's Marine segment underwrites various marine classes, including hull, energy, cargo and specie, piracy, satellite, aviation, kidnap and ransom, and war risks. Its Market Facilities segment underwrites portfolios of businesses. The company's Political, Accident & Contingency segment underwrites terrorism, political violence, expropriation, and credit risks, as well as contingency and risks associated with contract frustration. This segment also underwrites life, health, personal accident, sports, and income protection risks. Its Property segment provides commercial and homeowners' insurance. The company's Reinsurance segment specializes in writing property catastrophe, property per risk, casualty clash, aggregate excess of loss, and pro-rata businesses. Its Specialty Lines segment underwrites a portfolio of businesses comprising architects and engineers, healthcare, lawyers and environmental liability, market facilities business, and international financial institutions. The company was founded in 1986 and is based in London, the United Kingdom.
How the Company Makes MoneyBeazley generates revenue primarily through the underwriting of insurance policies and reinsurance contracts. The main revenue stream comes from the collection of premiums from policyholders, which are set based on risk assessments and market conditions. The company also earns investment income by managing the funds accumulated from premiums until claims are paid out. Additionally, Beazley has strategic partnerships with brokers and agents, which enhance its distribution capabilities and market reach. Factors contributing to its earnings include its reputation for underwriting expertise, its ability to identify and capitalize on emerging risks, and its strong capital management practices.
Beazley Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a strong financial performance with significant profit and investment returns. However, challenges in growth rates and competitive market conditions, particularly in cyber, were noted. Despite these challenges, the company's strategic management of its portfolio and investments provides a positive outlook.Q2-2025 Updates
Positive Updates
Strong Profit Performance
Generated a profit of $503 million, significantly above consensus, with an annualized return on equity of over 18% and a combined ratio of just under 85%.
Investment Portfolio Success
Achieved an investment profit of just over $300 million, equivalent to a 5.4% annualized return, despite a volatile investment environment.
MAP Division Growth
The fastest-growing division is MAP, driven by rising demand for products such as contingency, political risks, terrorism, and war, reflecting high levels of geopolitical risk.
Cyber Portfolio Management
Cyber combined ratio stands at 82.3%, reflecting strong performance from reduced frequency and severity of claims despite competitive market conditions.
Negative Updates
Slow Growth Rate
Reported a modest growth of 2% in the first half, below the expected mid-single-digit growth, due to increased competition and deliberate product selection.
Cyber Market Challenges
Faced a challenging rate environment in the North American cyber market, with intense competition and elevated claims activity affecting growth.
Expense Ratio Increase
IFRS 17 expense ratio increased due to variable incentive awards and continued investments in technology for long-term efficiencies.
Company Guidance
In the 2025 Interim Results Presentation, Beazley provided guidance on various metrics, reflecting a robust financial performance, despite a challenging market environment. The company reported a profit of $503 million, with an annualized return on equity exceeding 18% and a combined ratio of 84.9%. This strong result is attributed to effective underwriting and claims management, particularly in the face of increased large and catastrophic losses. While the company experienced a modest growth of 2% in the first half of the year due to competitive market conditions, it expects mid-single-digit growth for the full year, focusing on sectors with adequate rates and favorable risk-reward dynamics. Investment performance was also strong, with a return of 2.7% in the first half, contributing to a significant investment profit of over $300 million. Beazley maintained a robust Solvency II ratio of 287%, including a $500 million share buyback, and is on track to complete a $700 million capital return program by year-end. The company expects continued underwriting discipline and market opportunities to support future growth and profitability.Beazley Financial Statement Overview
Summary
Beazley exhibits strong revenue growth and a solid financial position, marked by significantly increased equity and well-managed debt levels. While profitability metrics have shown some fluctuations, cash flows have remained robust, underpinning the company's financial health.Income Statement
Beazley has demonstrated strong revenue growth over the past years, with a notable increase from 2019 to 2023, peaking at 5,099.5 million in 2023. The gross profit margins are robust given that gross profit equals total revenue. However, the net profit margin showed fluctuation, particularly with a negative margin in 2020. The EBIT and EBITDA margins indicate some operational challenges, as seen in 2024 with both at zero. Overall, the company is showing strong top-line growth, but profitability metrics display some volatility.78
Positive
Balance Sheet
Beazley's balance sheet reflects a stable financial position with a healthy increase in stockholders' equity from 1,625.3 million in 2019 to 4,606.8 million in 2024. The debt-to-equity ratio has been well-managed, staying relatively low over the years, indicating prudent use of leverage. The equity ratio has improved significantly, suggesting a stronger capital base and reduced financial risk.82
Very Positive
Cash Flow
The company's cash flow performance is impressive, with consistent free cash flow generation and growth over the years. The operating cash flow to net income ratio is strong, reflecting effective conversion of earnings into cash. Despite fluctuations in net income, the company has maintained positive free cash flows, highlighting operational efficiency and strong cash management.85
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.01B | 5.91B | 5.10B | 3.47B | 3.29B | 2.91B |
| Gross Profit | 5.91B | 5.91B | 584.70M | 3.47B | 3.29B | 2.91B |
| EBITDA | 1.45B | 1.42B | -374.60M | 613.90M | 409.60M | 0.00 |
| Net Income | 979.00M | 1.13B | 1.03B | 483.30M | 308.70M | -46.10M |
Balance Sheet | ||||||
| Total Assets | 15.83B | 15.42B | 13.67B | 15.10B | 12.81B | 10.59B |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 882.10M | 593.30M | 652.50M | 591.80M | 309.50M |
| Total Debt | 548.90M | 615.60M | 624.90M | 620.70M | 631.90M | 637.20M |
| Total Liabilities | 11.18B | 10.81B | 9.78B | 12.53B | 10.68B | 8.78B |
| Stockholders Equity | 4.65B | 4.61B | 3.88B | 2.57B | 2.13B | 1.81B |
Cash Flow | ||||||
| Free Cash Flow | 644.80M | 572.10M | 338.00M | 1.10B | 1.17B | 463.90M |
| Operating Cash Flow | 704.10M | 634.90M | 393.20M | 1.10B | 1.17B | 476.80M |
| Investing Cash Flow | -50.50M | -62.80M | -55.20M | -1.25B | -839.20M | -611.90M |
| Financing Cash Flow | -658.80M | -515.60M | -190.80M | 235.70M | -48.00M | 177.80M |
Beazley Technical Analysis
Neutral
842.00
Price Trends
843.40
Negative
881.63
Negative
859.65
Negative
Market Momentum
2.30
Negative
59.95
Neutral
86.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BEZ, the sentiment is Neutral. The current price of 842 is above the 20-day moving average (MA) of 803.85, below the 50-day MA of 843.40, and below the 200-day MA of 859.65, indicating a neutral trend. The MACD of 2.30 indicates Negative momentum. The RSI at 59.95 is Neutral, neither overbought nor oversold. The STOCH value of 86.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BEZ.
Beazley Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | 1.61B | 8.93 | 21.52% | 11.51% | 8.78% | -38.83% | |
78 Outperform | £5.03B | 7.00 | 22.59% | 2.97% | 6.00% | -24.29% | |
78 Outperform | 10.08B | 12.19 | 48.41% | 5.84% | 22.62% | 106.27% | |
71 Outperform | 4.42B | 9.76 | 17.00% | 2.08% | 1.12% | -18.14% | |
65 Neutral | 344.80M | 8.80 | 0.00% | 4.42% | 7.77% | 35.65% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
GB:BEZ
Beazley
842.00
100.24
13.51%
GB:ADM
Admiral
3,230.00
634.54
24.45%
GB:DLG
Direct Line Insurance
304.80
129.73
74.10%
GB:LRE
Lancashire Holdings
660.00
75.31
12.88%
HCXLF
Hiscox
17.86
2.82
18.75%
GB:SBRE
Sabre Insurance Group plc
141.00
10.86
8.34%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.