| Beazley plc (GB00BYQ0JC66) | |||
9,10 GBXStand (close): 04.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 04.04.25 09:39:12 | Those who invested in Beazley (LON:BEZ) five years ago are up 152% |  |
| The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, you can make far more than 100% on a really good stock. For example, the Beazley plc (LON:BEZ) share price has soared 128% in the last half decade. Most would be very happy with that. On top of that, the share price is up 14% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Beazley achieved compound earnings per share (EPS) growth of 32% per year. The EPS growth is more impressive than the yearly share price gain of 18% over the same period. So it seems the market isn't so enthusiastic about the stock these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 6.70. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).LSE:BEZ Earnings Per Share Growth April 4th 2025 We know that Beazley has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our freereport on how its financial position has changed over time . What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Beazley's TSR for the last 5 years was 152%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! Story Continues A Different Perspective It's good to see that Beazley has rewarded shareholders with a total shareholder return of 44% in the last twelve months. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 20%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Beazley (1 is a bit concerning!) that you should be aware of before investing here. Of course Beazley may not be the best stock to buy. So you may wish to see this freecollection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 08.03.25 08:29:22 | Beazley's (LON:BEZ) Shareholders Will Receive A Bigger Dividend Than Last Year |  |
| Beazley plc's (LON:BEZ) dividend will be increasing from last year's payment of the same period to $0.25 on 2nd of May. Even though the dividend went up, the yield is still quite low at only 2.8%. Check out our latest analysis for Beazley Beazley's Payment Could Potentially Have Solid Earnings Coverage Even a low dividend yield can be attractive if it is sustained for years on end. However, prior to this announcement, Beazley's dividend was comfortably covered by both cash flow and earnings. This means that most of its earnings are being retained to grow the business. EPS is set to fall by 17.8% over the next 12 months. If the dividend continues along recent trends, we estimate the payout ratio could be 17%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future.LSE:BEZ Historic Dividend March 8th 2025 Dividend Volatility The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the annual payment back then was $0.413, compared to the most recent full-year payment of $0.32. This works out to be a decline of approximately 2.5% per year over that time. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems. The Dividend Looks Likely To Grow With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Beazley has impressed us by growing EPS at 32% per year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock. We Really Like Beazley's Dividend Overall, a dividend increase is always good, and we think that Beazley is a strong income stock thanks to its track record and growing earnings. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. We should point out that the earnings are expected to fall over the next 12 months, which won't be a problem if this doesn't become a trend, but could cause some turbulence in the next year. Taking this all into consideration, this looks like it could be a good dividend opportunity. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. To that end, Beazley has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 07.03.25 05:26:02 | Beazley Full Year 2024 Earnings: Beats Expectations | |
| Beazley (LON:BEZ) Full Year 2024 Results Key Financial Results Revenue: US$5.54b (up 8.6% from FY 2023). Net income: US$1.13b (up 10% from FY 2023). Profit margin: 20% (in line with FY 2023). EPS: US$1.75 (up from US$1.55 in FY 2023).LSE:BEZ Revenue and Expenses Breakdown March 7th 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Beazley Revenues and Earnings Beat Expectations Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 9.8%. The primary driver behind last 12 months revenue was the Specialty Risks segment contributing a total revenue of US$1.92b (35% of total revenue). Notably, cost of sales worth US$3.68b amounted to 66% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$388.6m (53% of total expenses). Explore how BEZ's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 8.9% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Insurance industry in the United Kingdom. Performance of the British Insurance industry. The company's shares are up 4.3% from a week ago. Risk Analysis You still need to take note of risks, for example - Beazley has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 05.03.25 07:03:05 | Beazley PLC (BZLYF) (FY 2024) Earnings Call Highlights: Record Profits and Strategic Growth ... | |
| Profit Before Tax: Record profits of just over $1.4 billion. Shareholder Returns: $700 million returned to shareholders through increased dividends and a $500 million share buyback program. Combined Ratio: Undiscounted combined ratio of 79%. Insurance Written Premium Growth: 10% year-on-year growth, with 8.5% excluding recategorization impacts. Property Insurance Written Premium: 26% increase following last year's 64% growth. Return on Equity: Average of 17.7% over the last five years and just over 15% over the last ten years. Dividend Increase: Ordinary dividend increased to 25p. Investment Return: $574.4 million, a 5.2% return, the highest-ever absolute contribution. Reserve Releases: $144.5 million in reserve releases, representing 2.9% of net insurance revenue. Solvency Capital Ratio: 302% gross of any distributions, 264% net after distributions. Warning! GuruFocus has detected 5 Warning Signs with BZLYF. Release Date: March 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Beazley PLC (BZLYF) reported record profits for the second consecutive year, with profits exceeding $1.4 billion. The company announced a significant return to shareholders, including a $700 million distribution through increased dividends and a $500 million share buyback program. Beazley PLC (BZLYF) achieved a combined ratio of 79%, within their guidance of around 80%, demonstrating strong underwriting and claims handling capabilities. The company experienced a 10% year-on-year growth, driven by a 26% increase in property insurance written premiums. Beazley PLC (BZLYF) successfully launched Quantum, a consortium allowing deployment of a $100 million primary line size, well-received in the marketplace. Negative Points The company faced challenges with a more normalized attritional loss ratio and an active hurricane season impacting results. There was a slight rate decrease in the second half of the year, making growth more difficult in a competitive market. The specialty risks segment was impacted by social inflation and a competitive rate environment, requiring active cycle management. The company had to strengthen reserves for MAP due to geopolitical uncertainties, impacting financial results. Beazley PLC (BZLYF) anticipates a mid-80s combined ratio for 2025, reflecting expected market softening and provision for recent wildfires. Q & A Highlights Q: Can you explain the rationale behind the combined ratio guidance for 2025, given the previous year's performance and current market conditions? A: Adrian Cox, CEO, explained that the guidance for a mid-80s combined ratio reflects the impact of the LA wildfires and expected market softening. The previous year's low 80s guidance was adjusted to account for these factors, maintaining a consistent logic in their projections. Story Continues Q: With a strong capital position, how do you plan to manage capital returns if market conditions stabilize? A: Barbara Jensen, CFO, stated that the current capital return strategy includes a $500 million share buyback and rebasing the ordinary dividend to 25p. They will assess market conditions at the end of 2025 to determine further capital returns, retaining flexibility in their approach. Q: How has Beazley managed to avoid significant losses from the recent wildfires compared to peers? A: Paul Bantick, CUO, highlighted that Beazley's property team has focused on underwriting adjustments since 2017, reducing exposure to high-risk areas and infrastructure. This strategic focus on secondary perils and portfolio adjustments has minimized their wildfire losses. Q: What are the growth prospects for Beazley's E&S market, and how does it compare to the group's overall growth? A: Adrian Cox, CEO, noted that the E&S market in North America is expected to grow faster than the admitted business. Despite market flattening, submissions to the E&S market continue to rise, driven by the need for underwriting flexibility in changing risk environments. Q: Can you provide insights into Beazley's reinsurance strategy and any changes for 2025? A: Adrian Cox, CEO, mentioned that Beazley is renewing its main cat treaty and plans to buy more on the property insurance program. The reinsurance market's pricing is crucial, as a well-priced market supports healthy insurance practices. The renewal process is proceeding as planned. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
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| 04.03.25 09:45:35 | Beazley's shares hit record after insurer's profit beat, limited LA wildfire losses | |
| By Yamini Kalia (Reuters) - British insurer Beazley's (BEZ.L) shares hit a record high on Tuesday after it beat annual pretax profit expectations and estimated its losses from the Los Angeles wildfires would be much lower than its peers. Lloyd's of London insurer also launched a $500 million share buyback. Last year was tough for insurers as large-scale hurricanes in the United States weighed on earnings, while devastating Los Angeles wildfires kicked off 2025 on a sour note. CEO Adrian Cox told Reuters he does not expect the impact from the wildfires to affect Beazley much, but said the rising dangers of climate change will put pressure on the industry and insurers will need to be "very careful" about how they underwrite that. Beazley on Tuesday gave an initial estimate of an $80 million impact from the California wildfires, well below peers which have estimated hits of $100 million-$170 million, including Lancashire, which expects up to $165 million in losses from the destruction to LA. Shares of Beazley rose as much as 3.2% to an all-time high of 923 pence. Analysts estimate insured losses from the wildfires could reach as high as $20 billion, potentially making it the costliest disaster in California's history. Insurers, however, have also profited from higher premiums over the past few years due to inflation and losses stemming from the pandemic, wars and natural disasters, although prices declined in the latter half of 2024. "Our central estimation is that they will go down a little bit again this year," CEO Cox told Reuters. Beazley reported profit before tax of $1.42 billion in the year ended December 2024, up 13% from a year earlier and 9% ahead of consensus, according to Panmure Liberum. (Reporting by Yamini Kalia in Bengaluru; Editing by Eileen Soreng and Susan Fenton) View Comments |
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| 17.02.25 09:09:06 | Here's Why We Think Beazley (LON:BEZ) Might Deserve Your Attention Today | |
| For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Beazley (LON:BEZ). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Beazley with the means to add long-term value to shareholders. Check out our latest analysis for Beazley Beazley's Improving Profits Over the last three years, Beazley has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. So it would be better to isolate the growth rate over the last year for our analysis. Outstandingly, Beazley's EPS shot from US$0.74 to US$2.09, over the last year. It's not often a company can achieve year-on-year growth of 183%. One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. It's noted that Beazley's revenue from operations was lower than its revenue in the last twelve months, so that could distort our analysis of its margins. Beazley shareholders can take confidence from the fact that EBIT margins are up from 19% to 37%, and revenue is growing. Ticking those two boxes is a good sign of growth, in our book. You can take a look at the company's revenue and earnings growth trend, in the chart below. Click on the chart to see the exact numbers.LSE:BEZ Earnings and Revenue History February 17th 2025 Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Beazley. Are Beazley Insiders Aligned With All Shareholders? It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. That's because insider buying often indicates that those closest to the company have confidence that the share price will perform well. However, small purchases are not always indicative of conviction, and insiders don't always get it right. Story Continues The good news for Beazley shareholders is that no insiders reported selling shares in the last year. With that in mind, it's heartening that Anthony Reizenstein, the Independent Non-Executive Director of the company, paid US$37k for shares at around US$7.36 each. Purchases like this can help the investors understand the views of the management team; in which case they see some potential in Beazley. The good news, alongside the insider buying, for Beazley bulls is that insiders (collectively) have a meaningful investment in the stock. As a matter of fact, their holding is valued at US$13m. That shows significant buy-in, and may indicate conviction in the business strategy. While their ownership only accounts for 0.2%, this is still a considerable amount at stake to encourage the business to maintain a strategy that will deliver value to shareholders. Is Beazley Worth Keeping An Eye On? Beazley's earnings have taken off in quite an impressive fashion. To sweeten the deal, insiders have significant skin in the game with one even acquiring more. This quick rundown suggests that the business may be of good quality, and also at an inflection point, so maybe Beazley deserves timely attention. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Beazley that you should be aware of. Keen growth investors love to see insider activity. Thankfully, Beazley isn't the only one. You can see a a curated list of British companies which have exhibited consistent growth accompanied by high insider ownership. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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| 24.12.24 06:00:38 | FTSE 100 best performing stocks of 2024 | |
| A number of FTSE 100 (^FTSE) stocks have delivered standout returns this year, buoyed by different factors, which has driven the wider UK market higher. The UK's blue-chip index is up 5% year-to-date, reaching an all-time high close of 8,445.80 points in May. The Labour party's landslide victory in July's general election and the Bank of England starting to cut interest rates have both helped boost UK stocks. However, certain macro economic events have also weighed on the UK market, including Labour's first budget in more than 14 years, with concern about the impact of tax rises on businesses. The rise in the FTSE 100 is still well behind the 24% delivered by the S&P 500 (^GSPC), though there are a number of UK blue-chip stocks that have beaten that performance on an individual basis. Dan Coatsworth, investment analyst at AJ Bell (AJB.L), highlighted that 18 stocks in the FTSE 100 had delivered a total return in excess of 30%, while some 48 stocks had produced a double-digit return. "The UK stock market doesn’t deserve its unloved reputation," he said. "While it may lack the glitz and glamour of the US market, it’s still full of interesting companies offering steady earnings growth." "Fundamentally, the FTSE 100 can help provide ballast to an ISA or pension portfolio, particularly as the index has a rich source of dividends and a good mix of cyclical and defensive companies," Coatsworth added. Here are the top performing FTSE 100 stocks this year based on their total return, which includes share price performance and dividends, running to market close on 6 December, according to data from AJ Bell. NatWest (NWG.L) Bank NatWest has generated a total return of 99% year-to-date, following a strong run of results. Most recently, NatWest reported a 25% jump in profits in the third quarter to £1.67bn ($2.09bn), beating expectations of this figure coming in less than £1.5bn. NatWest also upgraded its income outlook for the year to £14.4bn, up from £14bn and raised its return on tangible equity target from 14% to 15%. The surge in profits was driven by net interest income — the difference what banks earns on loans and pays out on customer deposits and a key profit driver for retail banks — which came in at a better-than-expected £2.9bn. Stocks: Create your watchlist and portfolio In November, NatWest also announced that it had bought back £1bn of its shares from the UK government, meaning that the Treasury's stake in the bank fell to around 11.4% from 14.2%. Following bailouts in the financial crisis, the government at one point had an 84% stake in the bank, which was previously known as the Royal Bank of Scotland. Story Continues Coatsworth said: "A major share overhang was lifted as the government accelerated the sale of what was a large stake in the business following a bailout in the global financial crisis." "A decade ago, everyone was talking about challenger banks eating the legacy players’ lunch, yet NatWest is one of the big banks to have shaken off this competition," he said. “For a sector that is often mired in mis-selling scandals and the ever-increasing weight of regulation, it feels as if NatWest has shown that banks are still capable of doing well."Modern Rolls Royce luxury car parked outside the Chanel store on Bond Street on 1st December 2024 in London, United Kingdom. Bond Street is one of the principal streets in the West End shopping district and is very upmarket. It has been a fashionable shopping street since the 18th century. The rich and wealthy shop here mostly for high end fashion and jewellery. (photo by Mike Kemp/In Pictures via Getty Images)·Mike Kemp via Getty Images Rolls-Royce (RR.L) Another top performer in the FTSE 100 this year was Rolls-Royce, which has delivered a total return of 96%. Despite a challenging supply chain environment, Rolls-Royce CEO Tufan Erginbilgic said in a trading update in November that continued good performance provided further confidence that the company would deliver on its 2024 guidance. The engineering company maintained full-year guidance of generating underlying operating profit of between £2.1bn and £2.3bn, as well as free cash flow of between £2.1bn and £2.2bn. Read more: Will gold prices rise in 2025 and how can you invest? Susannah Streeter, head of money and markets at Hargreaves Lansdown (HL.L), said that Rolls-Royce was "benefitting from travellers refound desire for long-haul trips — as it produces and services aeroplane engines for bigger planes flying international routes." "The number of hours those aircraft stay in the sky has been rising, back above 2019 levels." Meanwhile, she said that Erginbilgic was "delivering on his promise to transform Rolls into a leaner, more focused company, and its already translating into lower debt levels and higher margins." Rolls-Royce also announced in its half-year results in August that it was reinstating its dividend for its full-year results, starting with a 30% pay-out ratio of underlying profit after tax, which would be paid in 2025. DS Smith (SMDS.L) A driver of DS Smith's share price performance this year has been its merger with the US-based International Paper Company (IP). The stock has generated a total return of 88%. "Although the paper and packaging market hasn’t recently been a very clement place to be with lower industry prices hitting profits, it posted a decent set of half year results," said Streeter. While DS Smith's first-half adjusted operating profit of £221m was 39% lower year-on-year, it said this was in line with the company's expectations, "despite ongoing challenging market conditions". The firm also declared an interim dividend of 6.2p per share, which was 3% higher than in the previous year. Read more: Top trending global stocks of 2024 Streeter said that DS Smith had made "significantly higher cost-savings than investors expected, and there is further opportunity for efficiency gains." "The group is a key supplier of cardboard boxes to the e-commerce and consumer goods sectors, and it has exposure to attractive end markets, especially with the shift away from plastic packaging," she added. DS Smith said in its recent results that it expected to its merger with International Paper Company to complete in the first quarter of 2025. International Consolidated Airlines Group (IAG.L) British Airways-owner IAG is another company benefitting from the delayed recovery in the travel sector post-pandemic. IAG logged a strong third quarter, with revenue climbing nearly 8% to €9.3bn (£7.7bn) and operating profits rising to €2.01bn, up 15% on the previous year. The company also announced a €350 stock buyback, which is when firms repurchase their shares and distribute the funds back to investors. Streeter said: "British Airways owner IAG has been gliding higher as the company carried more passengers on flights that have been increasingly full." Read more: Stocks that are trending today She said that the "upswing in capacity just as costs fall due efficiency savings and lower fuel prices has translated" into that surge in profits in the third quarter, which beat market estimates." "There might have been continued pressure on consumers’ incomes, but it appears people are ringfencing available budgets to spend on short trips and holidays abroad, with pent-up demand for travel showing little sign of abating just yet," she added. "Squeezing more passengers onto each flight increases profitability and has been part of recipe for success." As a result, the stock has delivered a total return of 85% this year.NEW YORK - NEW YORK - JUNE 6 : General view of the Barclays Headquarters on June 6, 2023 in New York City. Barclays bank has started the sales process for a portfolio of loans to individuals, also including non-performing mortgages and high risk loans in Swiss francs. (Photo by Eduardo Munoz Alvarez/VIEWpress/Getty Images)·VIEW press via Getty Images Barclays (BARC.L) Another bank on the list is Barclays, with a total return of 79% this year and shares trading at their highest point since 2015. Shares soared in October after the bank reported a 23% increase in attributable profits — which are owed to shareholders — to nearly £1.6bn in the third quarter. This beat consensus forecasts of nearly £1.3bn, according to figures provided by the bank. In addition, the bank announced a share buyback of up to £750m and a half-year dividend of 2.9p per share. Read more: What are share buybacks? Deutsche Bank (DBK.DE) recently highlighted Barclays as one of its top stock picks in the European banking sector going into 2025. Analysts said sizeable revenues outside of its net interest income including from asset and wealth management, as well as investment banking. In its third quarter results, Barclays said that total income across the business was up 5% year-on-year to £6.5bn, with the most growth seen in its investment banking division, where income had increased 6% to nearly £2.9bn. Deutsche Bank's analysts highlighted Barclays as a bank benefitting from merger and acquisitions activity in the sector, alluding to its recently completed purchase of Tesco's (TSCO.L) retail banking business. Beazley (BEZ.L) Shares in insurance firm Beazley hit an all-time high earlier in December of 840p per share, with the company having continued to deliver strong performance. In a recent trading update, Beazley said it was on track to achieve its full-year guidance. The insurer said insurance written premiums had risen 7% year-on-year in the third quarter to $4.6bn (£3.7bn). Adrian Cox, CEO of Beazley, said the business had continued to navigate a "volatile claims environment" this year. Read more: Stocks to watch in European luxury and retail in 2025, according to Deutsche Bank "Our commitment to disciplined underwriting and our risk selection expertise mean that, despite an active hurricane season and a global cyber event, we expect to deliver an undiscounted combined ratio of around 80% for the full year, consistent with our guidance at our interim results in August," he said. Shares rallied in February after the insurer announced that in addition to an ordinary dividend for 2023, shareholders would receive a further $300m in returned capital. Beazley has generated a total return of nearly 61% year-to-date. Hargreaves Lansdown (HL.L) A takeover deal sent shares in the UK's largest investment platform Hargreaves Lansdown higher this year, with a total return of 56%. The stock jumped in May when the company shared that it rejected an initial bid from a consortium made up of private equity investors, including CVC Capital Partners and Abu Dhabi's sovereign wealth fund. Read more: Global chip stocks to consider as investments beyond Nvidia Hargreaves then agreed to £5.4bn offer from the consortium in August, with shareholders having voted in favour of the acquisition in October. The platform said it expects the takeover to complete in the first quarter of 2025. In terms of company performance, Hargreaves said in a trading update at the end of October that it had seen net new client growth of 18,000 in its fiscal first quarter, versus 8,000 in the same period last year. Assets under administration had also grown to £157.3bn, with net new business contributing £500m. 3i Group (III.L) Private equity investment trust 3i Group, which invests in a wide range of sectors, has delivered a total return of 56% year-to-date. Companies in its portfolio include Audley Travel, which specialises in tailor-made holidays, and the European Bakery Group, which makes home bake-off bread and snack products. A major contributor to 3i's performance in the first half was Action, which is a non-food discounter founded in the Netherlands with more than 2,750 stores across Europe. Read more: Funds for investors to watch in 2025 Simon Borrows, CEO of 3i, said: "With a strong business and financial model and significant white space to expand into, we believe [Action] will continue to do so for many years to come. "In addition, the leading companies in our portfolio are performing strongly and a number of the portfolio companies that were adversely impacted by challenges in 2023 are beginning to turn the corner and see improved trading."Pedestrians walk past the British multinational banking and financial services company Standard Chartered branch in Hong Kong.·SOPA Images, SOPA Images Limited Standard Chartered (STAN.L) Investors cheered Standard Chartered's announcement of a record $1.5bn share buyback in July. Shares in the Asia-focused bank have continued to rise since then, with the stock trading at a nine-year high and generating a total return of 50% this year. Operating income was up 11% in the third quarter to $4.9bn, with the net interest income rising 9% to $3.6bn. Read more: FTSE 100 and European-listed stocks to own in 2025, according to Barclays Standard Chartered raised its income outlook once again for the full-year, guiding to an increase in operating income towards 10%. The bank also said that it was increasing its shareholder distribution target from at least $5bn to at least $8bn from 2024 to 2026. LSE - Delayed Quote•USD (STAN.L) Follow View Quote Details 1,056.50 - +(3.33%) At close: January 15 at 5:31:06 PM GMT Advanced Chart Imperial Brands (IMB.L) Despite increasing push back on the sector, tobacco giant Imperial Brands has continued to be a top performer in the FTSE 100 this year, with a total return of nearly 50%. The company's annual profits came in ahead of expectations, with the company seeing strong revenue growth from next generation products, such as vapes Imperial Brands logged adjusted net revenue of nearly £8.2bn across tobacco and next generation products, with 26% sales growth in the latter business segment. Read more: What can we expect for pensions in 2025? Imperial Brands reported that adjusted operating profits had risen nearly 5% on a constant currency basis to £3.9bn for the year ended 30 September, while adjusted earnings per share were up 11% to £2.97. In a Deutsche Bank note published on 21 November, a couple of days after Imperial's results were released, analyst Damian McNeela kept a buy rating on the stock. "The company has set a March 2025 date for a CMD (capital markets day) to unveil its next five-year plan," he said. "We think the business has been well served by the focus on consumers, data and shareholder returns and expect these priorities to form the basis of the strategy for the next five years." Overall, Hargreaves Lansdown's Streeter said that as "conditions for UK banks look more promising, investors have reacted by snapping up shares in big lenders." Pent-up demand for travel has also buoyed the performance of certain stocks. Meanwhile, takeover news has been another key theme among the top performers. Read more: Top trending global stocks of 2024 Will gold prices rise in 2025 and how can you invest? What will the UK housing market look like in 2025? Download the Yahoo Finance app, available for Apple and Android. View Comments |
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| 09.10.24 21:27:25 | Beazley PLC (BZLYF) (Q2 2024) Earnings Call Highlights: Record Profits and Strategic Growth ... | |
| Profit Before Tax: $729 million, a record half-year profit. Insurance Service Result: $558 million, up from $342 million last year. Investment Income: $252 million, up from $144 million last year. Combined Ratio: 81%, improved from 88% last year. Gross Premium Growth: 7%, in line with guidance. Property Growth: 25% increase. Cyber Combined Ratio: 73%. Total Expense Ratio: Improved from 41% to 38%. Investment Portfolio: $10.7 billion, with a 4.8% annualized return. Group Solvency Ratio: 245%. Cash and Fixed Income Securities: 82% of the investment portfolio. Warning! GuruFocus has detected 4 Warning Signs with BZLYF. Release Date: August 08, 2024 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Beazley PLC (BZLYF) reported a record half-year profit before tax of $729 million, driven by strong underwriting and investment performance. The company's combined ratio improved significantly to 81% from 88% the previous year, indicating better operational efficiency. Investment income increased by 75% year-over-year, reaching $252 million, with a diverse asset portfolio yielding strong returns. The property division experienced robust growth of 25%, capitalizing on opportunities in the complex property insurance and reinsurance markets. Beazley PLC (BZLYF) successfully launched a new E&S carrier in the US, with strong performance and a strategic transition of business from Lloyd's paper. Negative Points The cyber insurance market remains competitive, with rates down 6%, and potential challenges in maintaining growth if rates continue to fall. Specialty lines experienced a slight contraction, with a combined ratio increase due to reinsurance adjustments and exposure to social inflation. The company faces a dynamic market environment, making it challenging to predict growth opportunities for 2025 and beyond. Despite strong capital management, the solvency ratio of 245% may face pressure if significant growth opportunities arise, requiring careful capital allocation. The impact of IFRS 17 on financial reporting introduces complexities, particularly in understanding the effects of changes in financial assumptions and cash flow timing. Q & A Highlights Q: Why hasn't Beazley adjusted its expectations for attritional losses despite lower-than-expected claims? A: Adrian Cox, CEO, explained that while Beazley has outperformed in terms of loss perspective, particularly on the catastrophe side, the company is cautious due to the current claims environment where large losses are still occurring globally. Therefore, they have maintained their original guidance for the second half of the year, adjusting the overall guidance to around 80% due to better-than-expected catastrophe performance in the first half. Q: Can you provide insights on the reserve development seen in H1 and any extraordinary factors contributing to the results? A: Barbara Plucnar Jensen, CFO, noted that Beazley is comfortably within its preferred reserve range, and while specific splits will be provided at year-end, the MAP line has seen good releases due to fewer claims. Adrian Cox added that there was nothing extraordinary to highlight qualitatively. Q: How does Beazley view the current cyber insurance market, and what are the implications of recent systemic events like CrowdStrike? A: Adrian Cox stated that Beazley remains comfortable with current pricing levels, with a combined ratio of 73% for cyber. He expressed optimism about the market, noting that systemic events like CrowdStrike highlight the value of insurance and could lead to increased demand. The company is focused on primary and low excess layers, which limits its exposure to large losses. Q: What is the impact of the recent reinsurance adjustments on Beazley's specialty risk performance? A: Adrian Cox explained that the biggest driver for the jump in the combined ratio was a reinsurance adjustment, which involved paying more and adjusting attachment points. Specialty risks continue to face challenges, particularly in areas exposed to social inflation, but there are also areas performing well. Q: How does Beazley plan to manage its capital given the strong solvency ratio and potential growth opportunities? A: Adrian Cox emphasized that capital management depends on growth prospects for 2025 and beyond. The company aims to maintain a solvency ratio above 170% and will assess growth opportunities before deciding on capital distribution. The dynamic market conditions make it challenging to predict future capital needs. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View comments |
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| 07.10.24 06:48:33 | Investors in Beazley (LON:BEZ) have seen stellar returns of 116% over the past three years | |
| It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But when you pick a company that is really flourishing, you can make more than 100%. For instance the Beazley plc (LON:BEZ) share price is 101% higher than it was three years ago. That sort of return is as solid as granite. Also pleasing for shareholders was the 12% gain in the last three months. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. Check out our latest analysis for Beazley To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Beazley was able to grow its EPS at 126% per year over three years, sending the share price higher. This EPS growth is higher than the 26% average annual increase in the share price. So it seems investors have become more cautious about the company, over time. This cautious sentiment is reflected in its (fairly low) P/E ratio of 4.81. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). earnings-per-share-growth We know that Beazley has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our freereport on how its financial position has changed over time. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Beazley's TSR for the last 3 years was 116%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective We're pleased to report that Beazley shareholders have received a total shareholder return of 45% over one year. Of course, that includes the dividend. That's better than the annualised return of 6% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Beazley has 1 warning sign we think you should be aware of. Story continues Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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| 09.09.24 12:41:28 | Does Beazley (LON:BEZ) Deserve A Spot On Your Watchlist? | |
| It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up. In contrast to all that, many investors prefer to focus on companies like Beazley (LON:BEZ), which has not only revenues, but also profits. Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Beazley with the means to add long-term value to shareholders. See our latest analysis for Beazley How Fast Is Beazley Growing Its Earnings Per Share? In the last three years Beazley's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. So it would be better to isolate the growth rate over the last year for our analysis. Outstandingly, Beazley's EPS shot from US$0.74 to US$2.08, over the last year. It's a rarity to see 182% year-on-year growth like that. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. Our analysis has highlighted that Beazley's revenue from operations did not account for all of their revenue in the previous 12 months, so our analysis of its margins might not accurately reflect the underlying business. The good news is that Beazley is growing revenues, and EBIT margins improved by 17.4 percentage points to 37%, over the last year. Ticking those two boxes is a good sign of growth, in our book. In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers. earnings-and-revenue-history In investing, as in life, the future matters more than the past. So why not check out this freeinteractive visualization of Beazley's forecast profits? Are Beazley Insiders Aligned With All Shareholders? Owing to the size of Beazley, we wouldn't expect insiders to hold a significant proportion of the company. But thanks to their investment in the company, it's pleasing to see that there are still incentives to align their actions with the shareholders. Indeed, they hold US$12m worth of its stock. That shows significant buy-in, and may indicate conviction in the business strategy. Despite being just 0.2% of the company, the value of that investment is enough to show insiders have plenty riding on the venture. Story continues Does Beazley Deserve A Spot On Your Watchlist? Beazley's earnings per share growth have been climbing higher at an appreciable rate. That sort of growth is nothing short of eye-catching, and the large investment held by insiders should certainly brighten the view of the company. The hope is, of course, that the strong growth marks a fundamental improvement in the business economics. Based on the sum of its parts, we definitely think its worth watching Beazley very closely. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Beazley that you should be aware of. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in GB with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View comments |
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