Lloyd’s insurer gains from acting against cyber risks
THE surge in ransomware attacks giving company bosses sleepless nights is also testing the resolve of the insurance industry as it seeks to offset the huge financial risks.
Lloyd’s of London specialist Beazley today revealed some success with its approach after it introduced risk mitigation services as part of its cover, including the use of artificial intelligence and scanning tools to help identify threats before they cause havoc.
The strategy has so far helped to limit its exposure, while at the same time the FTSE 250-listed company has benefited from a hardening of industry rates in cyber insurance.
Beazley’s shares jumped 6% or 22p to 383p today as it revealed a 22% rise in gross written premiums to just over $2 billion, having seen rates strengthen across all its divisions.
Its performance also boosted hopes for the resumption of dividend payments after scrapping the pay-out amid last year’s pandemic-driven $50 million loss.
Beazley’s return to profitability in the first half of 2021 was one of the factors behind the FTSE 250 index continuing its strong run, rising another 249.78 points to 22,924.95.
Since falling sharply in Monday’s global sell-off, the mid-cap benchmark has rallied for four sessions thanks to a rebound for re-opening stocks and a series of earnings upgrades from Future, Morgan Sindall and Computacenter
among others. The FTSE 250 is now back within sight of its record level of just above 23,000 set earlier this month, adding to its outperformance compared with the FTSE 100.
The top flight was 51.44 points higher at 7,019.89, with Next among the frontrunners as investors continue to pile into the high street chain following this week’s earnings upgrade.
Shares were 2% or 152p higher at 8,172p, having started the week at 7,514p.