Beazley on lookout for acquisitions

Lloyd’s of London insurer Beazley yesterday reported a 60 per cent profit rise, helped by currency fluctuations, and said it remained on the lookout for takeovers after failing to buy rival Hardy last year.

By The Newsroom

Published 9th Feb 2011, 06:00 BST

Beazley chief executive Andrew Horton said the company saw acquisition opportunities in 2011 as persistently weak insurance prices put pressure on rivals.

“Some companies may struggle with their profitability in 2011, and there may be opportunities to acquire,” he said.

Mr Horton also said Beazley, which moved to Dublin for tax purposes in 2009, planned to stay put as there was no sign that Ireland’s bailout by the EU in November would lead to higher corporate taxes.

“The political pressures in Europe have not forced them to change that. Our intention is to continue as we are with Ireland as our tax domicile,” he said.

Beazley’s pre-tax profit for 2010 was $250.8m, up from $158.1m the previous year. The increase was driven by a foreign exchange gain of $33.7m as well as lower costs, offsetting a 57 per cent drop in investment income as the company prioritised low-risk assets.

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