LONDON (ShareCast) - (Sharecast News) - Global insurer Beazley forecast an underwriting loss for the year and set aside $80m to pay out catastrophe claims, adding that gross written premiums rose 16% in the year to date driven by rate increases across all divisions.
The company said it now expected a full-year combined ratio of around 110% versus the 100% forecast in July. A level below 100% indicates an underwriting profit.

"Our initial estimate of the costs of the third quarter catastrophe events including hurricanes Laura and Sally and the wildfires in California is approximately $80m net of reinsurance and reinstatement premiums," Beazley said.

The company on Friday said premiums for the nine months to September 30 came in at $2.5bn, compared with £2.19bn a year earlier.

Investment returns plunged to $124m at September 30 from $215m a year earlier as Beazley noted that US Sovereign bond yields remain "very low, such that our high quality fixed income assets are not likely to contribute materially to returns in the near future".

"Our investment strategy remains cautious in view of continuing uncertainty in the economic outlook."

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