In news on major UK stocks, FTSE 100-listed Beazley PLC (GB:BEZ) pleasantly surprised investors with a minor trading update, leading to an 8.9% increase in its shares yesterday. According to the company’s revised projection for the full year of Fiscal 2023, its undiscounted combined ratio has improved to the mid-70s from the low-80s.
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It’s important to note that the undiscounted combined ratio measures the profitability of an insurance company. A value below 100 implies underwriting profitability; the lower the ratio, the better it is.
Beazley PLC is a British multinational specialty insurance company with operations across Europe, the U.S., and Asia.
More Details About the Update
In addition to providing updated guidance, Beazley impressed investors by announcing an additional capital return opportunity worth $300 million. This amount will be in addition to the ordinary cash dividend that shareholders will receive for Fiscal 2023, Beazley said.
The company is scheduled to report its annual results on March 7, 2024. At that time, it will disclose more information regarding the methodology and the exact amount of the increased return.
Is Beazley Stock a Good Buy?
Following the short trading update, Jefferies analyst James Pearse believes that a part of the improved claims experience will be recurrent and not just a one-off gain from “lower catastrophe losses,” backed by solid premium pricing.
Also, a J.P. Morgan analyst was impressed by Beazley’s ability to exceed expectations, especially after witnessing sluggish growth in the previous year.
On TipRanks, BEZ stock commands a Strong Buy consensus rating based on five Buys and one Hold rating. The Beazley PLC share price target of 784.67p implies 23.6% upside potential from current levels.
