Beazley, the specialty insurer, announced on Monday that it has restated its financial information for 2022 following the adoption of the new accounting standard IFRS 17. The company experienced a significant increase in pretax profit as a result.
Under the new standard, Beazley’s pretax profit for the year 2022 now stands at $547 million, compared to $191 million under the previous IFRS 4 standard. This dramatic rise in profit reflects the positive impact of adopting IFRS 17.
Furthermore, earnings per share for the year saw a significant boost, reaching 60.1 pence. This indicates a favorable performance for Beazley in terms of profitability and shareholder returns.
Although gross premiums written slightly decreased to $5.267 billion for the year 2022, compared to $5.269 billion under IFRS 4, this change can be attributed to adjustments made in accordance with the new accounting standard. It is important to note that the restatement of financial information aligns with Beazley’s commitment to transparency and accurate reporting.
One important metric for the insurance industry is the return on equity (ROE). Beazley saw a remarkable increase in ROE, rising from 7% to 18% in 2022 under the new standard. This improvement suggests that the company has effectively utilized its equity and generated higher returns for its shareholders.
Additionally, Beazley’s combined ratio, a key measure of financial health, experienced a meaningful reduction of 10 points to 79% for 2022. This improvement can be attributed to the removal of non-directly attributable expenses and the implementation of cash flow discounting. These adjustments have contributed to the overall financial stability and efficiency of the company.
In conclusion, Beazley’s adoption of IFRS 17 has had a positive impact on its financial performance for the year 2022. The restated figures not only indicate a significant rise in pretax profit but also demonstrate improved metrics such as earnings per share, return on equity, and combined ratio. These results exemplify Beazley’s dedication to maintaining financial excellence and providing accurate and transparent financial reporting.