LONDON (dpa-AFX) - Beazley plc (BEZ.L) reported that its profit before income tax declined by 55% to $76.4 million for year ended 31st December 2018 from $168.0 million, prior year, due to a decline in investment returns. Earnings per share was 12.8 cents compared to 24.4 cents. The company generated a return on average shareholders' equity of 5% compared to 9%.
Fiscal year revenue was $2.16 billion compared to $2.04 billion, prior year. Gross premiums written increased by 12% to $2.61 billion.
Andrew Horton, CEO, said: 'Beazley saw strong growth in 2018 with gross premiums written rising 12%. Our US business has been growing extremely well and we underwrote more than a billion dollars of premium locally for the first time in the US last year. Although market conditions were challenging, depressing our earnings, we entered 2019 with positive premium rate momentum and higher interest rates that should deliver stronger returns going forward.'
The board announced a second interim dividend of 7.8 pence per ordinary share, in line with its strategy of delivering 5-10% dividend growth. Together with the first interim dividend of 3.9 pence, this takes the total dividends declared for 2018 to 11.7 pence per ordinary share.
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