- Insurance company Beazley swung to an annual loss following a deterioration in its combined ratio amid a wave of Covid-19 related claims.

For the year ended 31 December, the company reported a pre-tax loss of $50.4 million, compared with a profit of $267.7 million year-on-year, while premiums grew 19% to $3,563.8 million.

The loss was driven by a combined ratio that deteriorated to 109% from 100%, impacted by the volume of COVID-19 related claims.

Booked first-party losses related to COVID-19 had reached $340 million by year end.

The company said its underwriting action over the previous year in anticipation of a future recession, would mitigate the impact in its longer tail liability classes, where claims were expected to materialise from 2021 onwards.

Looking ahead, the company forecast the combined ratio to deteriorate further, expecting to deliver a low-90s combined ratio for 2021 'assuming average claims experience.'

Story provided by