Beazley shares rose sharply on Thursday after the group announced plans to dish out around $300million (£237million) extra to shareholders.
In a short stock market update, insurance and reinsurance group Beazley said it had enjoyed a ‘better than expected claims experience’ in the past year.
The Lloyd’s of London firm saw its shares jump 8.33 per cent or 48.50p to 630.50p on Thursday, topping the FTSE 100 rankings, having fallen over 6 per cent in the last year.
On the up: Beazley plans to dish out more cash to shareholders, it announced on Thursday
Beazley said guidance on its undiscounted combined ratio had improved from low-80s to mid-70s for 2023.
The undiscounted combined ratio is a profitability measure used by insurers. A ratio of below 100 indicated underwriting profitability.
The group said: ‘As well as an ordinary dividend, shareholders will receive an additional capital return in respect of 2023. This is expected to be around $300million.’
Further details of the additional returns for shareholders will be revealed on 7 March, when the company publishes its latest annual results. It is not yet known, for instance, whether a special dividend or share buyback will be on the cards.
Earlier this week, Beazley revealed it was developing a new cyber-risk management company.
The company has merged its own in-house cyber services team with its subsidiary and fellow cyber security business, Lodestone.
Alton Kizziah, chief executive of Beazley Security said: ‘Building cyber resilience is top of mind for business leaders and Beazley Security has been created to bring responsive cyber protections to the heart of the fight against ever-evolving threats.
‘I’m excited to lead an outstanding team of specialists committed to providing clients with confidence and peace of mind.’
Earlier this month, Beazley held the lowest market capitalisation among firms in the FTSE 100 index.
