Title : Interim Report 2023

Beazley plc | Interim Report 2023

We live in a world facing new levels of known risks and complex, novel risks. We believe the role and responsibility of a leading sustainable specialist insurer is to equip and support its clients

with ways to mitigate these risks so that their businesses can thrive.

Fear of risk limits creativity and stifles progress. The services and products that we provide deliver peace of mind. But more than this, our purpose at Beazley is to inspire our clients and people with the confidence and freedom to explore, create and build - to enable people and businesses to thrive. Our clients want to live and work freely and fully, knowing they are benefiting from the most advanced thinking in the insurance market.

We are passionate about bringing innovative and progressive thinking to the challenges of the insurance market. We have deep experience, and our approach is bold and non-conformist. We choose to be different and are not afraid to challenge the status quo in order to bring better and more enabling solutions to the market. We harness an enviable bench of expert solvers, intuitive tech-driven solutions and the hunger to go beyond expectations in everything we do. We expect our people to do the right thing in all situations - to act with integrity, respect and empathy.

1. About Beazley

1. Highlights
2. Key performance indicators
3. Interim results statement

1. Performance by division

1. Spotlight on capital CEO Q&A
2. Condensed consolidated statement of profit or loss

1. Condensed consolidated statement of comprehensive income
2. Condensed consolidated statement of changes in equity
3. Condensed consolidated statement of financial position
4. Condensed consolidated statement of cash flows
5. Notes to the condensed consolidated interim financial statements

1. Responsibility statement of the Directors in respect of the interim report
2. Independent review report to Beazley plc
3. Alternative performance measures

52 Company information

At Beazley we are driven by enabling potential in our clients and our people, contributing to a brighter and more sustainable world.

About Beazley

Beazley plc is the parent company of our specialist insurance business with operations in Europe, the US, Canada, Latin America and Asia. Beazley is a proud participant in the Lloyd's market, one of the largest and oldest insurance markets in the world. Through the Lloyd's broker network and the market's trading licences, we are able to access a wide range of insurance and reinsurance business from around the world. Many of the lines of business we underwrite, such as Marine, Political Risks and Contingency, were pioneered at Lloyd's.

Beazley manages seven Lloyd's syndicates: syndicates 2623 and 623 underwrite a broad range of insurance and reinsurance business worldwide; syndicate 3622 is a dedicated life syndicate; syndicate 3623 previously wrote personal accident and facilities business; syndicate 6107 is a special purpose syndicate which writes reinsurance business; syndicate 5623 writes facilities business; and syndicate 4321 is a Lloyd's syndicate in a box, which

focuses on writing business on a consortium basis led by syndicate 2623/623 based on ESG scores of insureds.

We also underwrite business directly in the US-admitted market through Beazley Insurance Company, Inc. ("BICI"), an admitted carrier licensed to write in all 50 states, and Beazley America Insurance Company, Inc. ("BAIC"), an admitted carrier licensed to write in 49 states.

Our European insurance company, Beazley Insurance dac ("BIdac") underwrites business throughout the European Economic Area, the United Kingdom and Switzerland. BIdac is licensed to write direct business through its branches in the UK, France, Germany, Spain and Switzerland. BIdac also acts as an internal reinsurer for a portion of the Group syndicates' business.

Further information about us is available at:

www.beazley.com

Highlights

	6 months ended	6 months ended	Year to
	30 June	30 June	31 December
	2023	20221	20221
Insurance written premiums ($m)	2,921.1	2,574.3	5,246.3
Net insurance written premiums ($m)	2,349.6	1,808.2	3,772.4
Insurance service result ($m)	342.2	540.6	822.9
Profit before tax ($m)	366.4	364.9	584.0
Claims ratio	49%	39%	47%
Expense ratio	35%	32%	32%
Combined ratio	84%	71%	79%
Basic earnings per share (cents)	42.8	48.7	79.0
Net assets per share (cents)	470.8	389.6	444.1
Net tangible assets per share (cents)	450.5	370.0	424.7
Basic earnings per share (pence)	34.9	37.1	63.4
Net assets per share (pence)	376.6	319.5	364.2
Net tangible assets per share (pence)	360.4	303.4	348.3
Return on equity (annualised)	18%	26%	19%
Premium renewal rate change	5%	18%	14%
Investment return (annualised)	3.0%	(5.0)%	(2.1)%

• As a result of the adoption of IFRS 17, comparative information has been restated for the 6 months ended 30 June 2022 and year to 31 December 2022. This applies to income statement figures in addition to net assets (total equity).

The Beazley Group ("the Group") uses alternative performance measures ("APMs") to help explain its financial performance and position. The Group views some of the information contained above (in addition to its key performance indicators) to be APMs. Further information on these can be found on pages 49 to 51.

www.beazley.com

Beazley | Interim report 2023

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Key performance indicators

Financial1

	Earnings per share (c)
90	2023
80
70	79.0
60
50
40	48.7
30	42.8
20
10
0

FY HY HY 2022 2022 2023

Return on equity (annualised) (%)

25

262023

20

15	19	18

10

5

0

-5

FY HY HY 2022 2022 2023

	Net assets per share (c)	Insurance written premiums
450	19.4		20.3			($m)
		450.5	2023
400	424.7	19.6
350			7,000
	370.0
300			6,000
250
			5,000
200				5,246.3
			4,000
150
			3,000
100
			2,000			2,921.1
50					2,574.3
			1,000
0
			0
	FY	HY	HY
		FY 2022	HY 2022	HY 2023
	2022	2022	2023
	Tangible	Intangible

Combined ratio (%)

120				2023
100	79		84
71
80
60
40	47	39	49
20	32	32	35
0
	FY	HY	HY
	2022	2022	2023

Expense ratio

Claims ratio

• As a result of the adoption of IFRS 17, comparative information has been restated for the 6 months ended 30 June 2022 and year to 31 December 2022. This applies to income statement figures in addition to net assets (total equity).

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Beazley | Interim report 2023

www.beazley.com

Interim results statement

2023 marks the first year of reporting under IFRS 17 and under the new standard, Beazley delivered a profit before tax of $366.4m for the first half of 2023 (30 June 2022: $364.9m). This included an insurance service result of $342.2m (30 June 2022: $540.6m), resulting in a discounted combined ratio of 84% (30 June 2022: 71%) and an undiscounted combined ratio of 88%

(30 June 2022: 74%). Our investment team achieved a strong investment result of $143.9m (30 June 2022: loss of $193.0m) or 3.0% annualised (30 June 2022: loss of 5.0%). In Property, Insurance written premiums grew by 65% to $805.2m, alongside ongoing growth in Cyber which saw insurance written premiums increase by 14%. We have also achieved this growth at returns exceeding our long-term targets, with an annualised return on equity

of 18% (30 June 2022: 26%).

2023 has been a moment of opportunity for Beazley allowing us to demonstrate the success of our diversified strategy, and our ability to adapt and effectively allocate capital to the best growth and return opportunities as the underwriting price cycle changes.

www.beazley.com

So far this year, this has seen us lean into the significant upswing in the property market with premiums up 65%, with stronger than expected growth seen in the direct property market, while reinsurance performed very positively, as expected. We continue to grow our cyber business, with a growth rate of 14%, even as the cyber war wordings issue has created unsettled market dynamics, in particular we are pleased with the growth we are generating internationally. Equally importantly, we have maintained our position in our key liability businesses within Specialty Risks despite the highly competitive market conditions in certain lines that we have highlighted since late 2022. Our MAP Risks division continued to deliver as expected with gross growth being curtailed as planned due to our portfolio underwriting no longer needing to be fronted by the Group as syndicate 5623 became a standalone syndicate.

It is at moments like these, when the economic situation is unpredictable and technology is asking challenging questions of us, that the strength and benefits of our diversified platform, product and geography strategy comes to the fore. In May 2023, we added a US domestic Excess & Surplus lines carrier to our North American platform. Subject to obtaining approvals, we will begin underwriting excess and surplus lines insurance originating from the US in 2024 in addition to transferring to it similar business already written within our managed syndicates. We expect approximately $600m of premiums by the end of 2024 with a further $1.38bn by the end of 2026.

Combining this environment with our diversified product and tri-platform strategy, and the increased awareness of, and demand for, our underwriting and claims expertise, allows me to remain confident in our ability to deliver high

Beazley | Interim report 2023

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