Beazley : Annual report for the year ending 31 December 2022

Beazley plc | Annual report and accounts 2022

Insurance. Just different.

Preface to Beazley 2022 Annual Report and Accounts

A version of Beazley's Annual Report and Accounts for the year ended 31 December 2022 was originally approved by The Board on 1 March 2023 and Beazley announced its final results for the year ended 31 December 2022 on 2 March 2023. The final results reported an alternative performance measure of net assets per share that had been calculated using the weighted average of shares for the year. This alternative performance measure was used by Beazley to determine the LTIP awards for Adrian Cox and Sally Lake that were initially approved by the Remuneration Committee and included in the Directors Remuneration Report.

It had been intended that the alternative performance measure would be calculated using the number of shares at 31 December 2022, rather than using the weighted average of shares for the year. On 7 March 2023, Beazley published an RNS entitled 'Alternative performance measure correction NAVps', which provided updated information on the net asset value per share calculation. On 8 March 2023, Beazley published an RNS entitled 'Alternative performance measure correction NAVps - update', which provided updated information on the LTIP awards for Adrian Cox and Sally Lake once the Board had considered the updated net asset value per share calculation.

The Company, having taken advice, has determined that the annual report and accounts as initially approved by the Board on 1 March 2023 were neither sent or supplied to shareholders in accordance with the provisions of the Companies Act 2006, nor were such accounts as a matter of fact, laid before a general meeting of the Company or filed with Companies House. The Board therefore rescinded its approval of the version of the accounts that were approved on 1 March 2023 and, in their place, approved this version of the accounts as the 2022 Annual Report and Accounts on 12 March 2023. As a result, this final version of the 2022 Annual Report and Accounts reflects the updated figures set out in the RNSs published on 7 and 8 March 2023. Other than as described in those RNSs and the related changes, no changes have been made to the annual report and accounts as initially approved by The Board on 1 March 2023.

The Company acknowledges that a hyperlink was contained in the announcement of its final results to the version of the accounts that were approved on 1 March 2023 which appeared temporarily on the Company's website. No reliance should be placed on that document which was removed as soon as the error came to light.

The updated information announced by Beazley on 8 March 2023 (which is reflected on page 121 in this 2022 Annual Report and Accounts) is set out below:

				Fixed pay			Pay for performance
							Total annual	Long term
						Total fixed	incentives	Total	Total
£			Salary	Benefits	Pension	pay	bonus	(LTI)1	variable pay	remuneration
Adrian P	Revised	2022	525,250	19,760	65,656	610,666	787,875	106,663	894,538	1,505,204
Cox	Original	2022	525,250	19,760	65,656	610,666	787,875	245,127	1,033,002	1,643,668
	Adjustment	2022	0	0	0	0	0	-138,464	-138,464	-138,464
Sally M	Revised	2022	414,000	2,938	45,960	462,898	621,000	71,190	692,190	1,155,088
Lake	Original	2022	414,000	2,938	45,960	462,898	621,000	179,310	800,310	1,263,208
	Adjustment	2022	0	0	0	0	0	-108,120	-108,120	-108,120

1 The LTI figures for 2022 have been calculated using the average share price in the last three months of 2022 of 630.7p.

Strategic report

01 Highlights

1. Key performance indicators
2. Our purpose
3. Our business model

1. Statement of the Chair

1. Chief Executive Officer's statement

1. Chief Underwriting Officer's report

1. Performance by division

1. Responsible business

1. Task Force on Climate-Related Financial Disclosures (TCFD) 2022

1. Stakeholder engagement

1. Section 172 statement

1. Financial review
   58 Group performance
   63 Balance sheet management
   64 Capital structure

1. Risk management & compliance

Governance

73 Letter from our Chair

1. Statement of corporate governance

1. Board of Directors

1. Governance Framework

1. Shareholder engagement and investor relations
2. Board evaluation

1. Audit and Risk Committee

1. Nomination Committee

1. Remuneration Committee

1. Letter from the Chair of our Remuneration Committee

1. Directors' remuneration report

1. Statement of Directors' responsibilities
2. Directors' report

1. Independent auditor's report

Financial statements

1. Consolidated statement of profit or loss
2. Statement of comprehensive income
3. Statements of changes in equity

1. Statements of financial position
2. Statements of cash flows
3. Notes to the financial statements

1. Alternative performance measures

Highlights

Financial

Gross premiums written		Net premiums written		Net earned premiums
$5,268.7m		$3,876.2m		$3,614.2m
(2021: $4,618.9m)		(2021: $3,512.4m)		(2021: $3,147.3m)
Net investment (loss)/income		Cash and investments		Investment return
$(179.7)m		$8,998.1m	(2.1)%
(2021: $116.4m)		(2021: $7,875.3m)	(2021: 1.6%)
Rate increase on renewals		Profit before tax for the financial year
14%		$191.0m
(2021: 24%)		(2021: $369.2m)

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Beazley | Annual report 2022

01

Key performance indicators

Financial

Earnings per share (c)

60
50
			50.9
40		44.6
30
				26.3
20
10
13.0
0
		(8.0)
-10
2018	2019	2020	2021	2022

Dividends per share (p)

Net assets per share (c)

450
400			19.3
350			20.4
23.3	20.9	367.4
300
24.2		331.2

1. 286.3 278.0

1. 256.2

150

100

50

0

2018 2019 2020 2021 2022

Tangible Intangible

Return on equity (%)

	Gross premiums written
			($m)
						5,268.7
5000					4,618.9
4000				3,563.8
			3,003.9
3000		2,615.3
2000
1000
0
2018	2019	2020	2021	2022

Combined ratio (%)

15
	12.3	12.9	13.5
	11.7
10
5

20

15

10

1516

120
	100	109
98	93	89
100
80
60
59	62	73	58	54
40

0.0

5

7

5

20	39	38	36	35	35

0
2018	2019	2020	2021	2022
Interim and second interim	Special

0

-5

(3)

0
2018	2019	2020	2021	2022
Expense ratio	Claims ratio

2018 2019 2020 2021 2022

Average five year return on equity of 8%.

Our combined ratio has averaged 98% over five years.

The Group is of the view that some of the above metrics constitute alternative performance measures (APMs). Further information on our APMs can be found in the financial review on page 59.

Non-financial

Female representation in senior		People of Colour representation in		Overall carbon emissions
leadership roles		the workforce
43%	25%		5,283.0tCO2e
(2021: 38%)	(2021: 23%)		(2021: 2,228.5 tCO2e)
Employee engagement		Employee favourability
85%	80%
(2021: 86%)	(2021: 81%)

02

Beazley | Annual report 2022

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