FTSE 100 Beazley profit plunges as war roils insurance market
FTSE 100 insurer Beazley said war and rising global risks were hitting the insurance market as it revealed that its profit more than halved in the first half of 2026.
The insurer reported a pre-tax profit of $237.7m (£176.6m) for the first half of 2026, a 53 per cent fall from the $502.5m reported in the same period last year. Insurance written premiums dropped by four per cent to $3.05bn (£2.27bn).
Chief executive Adrian Cox said conditions in the specialty insurance market were softening “rapidly” as the impact of war in the Middle East and growing cyber risks led to larger payouts to customers.
“In these conditions, our robust approach to disciplined underwriting sees us continue to focus on prudent risk selection and to de-risk in areas that have become unprofitable,” he said.
The board warned that excess competition in the cyber market, especially in North America, was driving rates down to levels that no longer accurately reflect the escalating risks posed by AI and geopolitical volatility.
The US cyber market, which accounted for 9 per cent of Beazley’s portfolio, was being scaled back, and the insurer was pivoting into Bermuda instead. The offshore island is the world leader in insurance-linked securities (ILS) and is also one of the leading jurisdictions for captive insurance. The insurer reported in March that it is focused on “acting decisively in areas of structural opportunity” as it prepares to pivot to Bermuda, aiming to reach $400 million in written premiums by 2030.
Zurich acquisition looms
The half-year results come after the Lloyd’s of London underwriter agreed in February to be acquired by Zurich in a landmark £8bn deal.
The offer proposed by Zurich had a total value of 1,335 pence per share, composed of a 1,310p cash payment from Zurich and a permitted dividend of up to 25p to be paid by Beazley to its shareholders. The deal, which is expected to close before the end of the year, will put an end to Beazley’s presence on the London Stock Exchange.
However, its bottom line was impacted by $33.6m (£24.9m) in direct costs related to the Zurich transaction, with an additional $56m in contingent expenses noted upon successful completion.