At the same time,
The downgrade of the ratings of Beazley,
Beazley has a good performance record, supported by strong reserving practices, and is expected to continue to benefit from internal capital generation. In addition, financial flexibility is strong, due in part to relatively low debt leverage and good interest expense coverage. However, the group is expected to continue to follow an active capital management strategy and, taking into account the quality of capital,
Beazley underwrites primarily within the Lloyd's market, with only 2 percent of net written premium in 2011 written outside the Lloyd's market. Syndicates 2623, 623, 3623 and 3622 are managed by
Beazley has a track record of good and stable underwriting performance, as demonstrated by an average combined ratio of 91 percent for the period 2009-2012. Its well-balanced underwriting portfolio, which includes a large casualty account, has contributed to its stable results record. The combined ratio for 2012 was 88 percent, and a similar ratio is expected for 2013, in line with the long-term performance of the group. Investment income has been positive but modest since 2008, reflecting the low interest rate environment.
The group has a strong business profile in the Lloyd's market through syndicates 2623 and 623 in particular, reflected in good leadership positions in key lines. A well-diversified portfolio of professional indemnity, property, reinsurance, marine and political risk and contingency business is underwritten. In addition, life, accident and health business is written through syndicates 3623 and 3622.