LSE:BEZ

Stock Analysis Report

Executive Summary

Beazley plc provides risk insurance and reinsurance solutions in the United States, Europe, and internationally.


Snowflake Analysis

Undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Beazley's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BEZ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

BEZ

22.7%

GB Insurance

10.0%

GB Market


1 Year Return

-26.7%

BEZ

-29.4%

GB Insurance

-23.0%

GB Market

Return vs Industry: BEZ exceeded the UK Insurance industry which returned -29.4% over the past year.

Return vs Market: BEZ underperformed the UK Market which returned -23% over the past year.


Shareholder returns

BEZIndustryMarket
7 Day-2.3%22.7%10.0%
30 Day-27.9%-19.2%-17.6%
90 Day-30.7%-28.9%-27.3%
1 Year-25.1%-26.7%-21.6%-29.4%-18.9%-23.0%
3 Year-3.7%-9.7%-18.8%-33.3%-12.9%-24.2%
5 Year58.9%31.1%-10.6%-33.4%1.6%-21.8%

Price Volatility Vs. Market

How volatile is Beazley's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Beazley undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BEZ (£3.85) is trading below our estimate of fair value (£8.78)

Significantly Below Fair Value: BEZ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BEZ is good value based on its PE Ratio (10.7x) compared to the Insurance industry average (12.9x).

PE vs Market: BEZ is good value based on its PE Ratio (10.7x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: BEZ is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: BEZ is overvalued based on its PB Ratio (1.5x) compared to the GB Insurance industry average (1.3x).


Next Steps

Future Growth

How is Beazley forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

12.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEZ's forecast earnings growth (12.1% per year) is above the savings rate (0.5%).

Earnings vs Market: BEZ's earnings (12.1% per year) are forecast to grow slower than the UK market (15.5% per year).

High Growth Earnings: BEZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: BEZ's revenue (11.3% per year) is forecast to grow faster than the UK market (2.3% per year).

High Growth Revenue: BEZ's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BEZ's Return on Equity is forecast to be low in 3 years time (17%).


Next Steps

Past Performance

How has Beazley performed over the past 5 years?

-14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BEZ has high quality earnings.

Growing Profit Margin: BEZ's current net profit margins (8.9%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: BEZ's earnings have declined by -14.4% per year over the past 5 years.

Accelerating Growth: BEZ's earnings growth over the past year (243.3%) exceeds its 5-year average (-14.4% per year).

Earnings vs Industry: BEZ earnings growth over the past year (243.3%) exceeded the Insurance industry 4.5%.


Return on Equity

High ROE: BEZ's Return on Equity (14.4%) is considered low.


Next Steps

Financial Health

How is Beazley's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BEZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: BEZ's debt is covered by short term assets (assets are 15x debt).


Financial Institutions Analysis

Asset Level: BEZ's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BEZ has a sufficient allowance for bad loans.

Low Risk Liabilities: BEZ reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BEZ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BEZ has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BEZ has an appropriate level of bad loans.


Next Steps

Dividend

What is Beazley's current dividend yield, its reliability and sustainability?

2.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BEZ's dividend (2.95%) is higher than the bottom 25% of dividend payers in the UK market (2.69%).

High Dividend: BEZ's dividend (2.95%) is low compared to the top 25% of dividend payers in the UK market (7.48%).


Stability and Growth of Payments

Stable Dividend: BEZ's dividend payments have been volatile in the past 10 years.

Growing Dividend: BEZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.5%), BEZ's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BEZ's dividends in 3 years are forecast to be well covered by earnings (32% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

David Horton (56yo)

11.42s

Tenure

US$2,193,726

Compensation

Mr. David Andrew Horton serves as Director of Lloyd's Syndicate - 6107. He joined Beazley in June 2003 as finance director. Mr. Horton serves as Chief Executive Officer and Director at Lloyd's Syndicate -  ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD2.72M) is about average for companies of similar size in the UK market ($USD2.45M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Horton
CEO & Executive Director 11.42yrsUS$2.19m0.33% $6.8m
Sally Lake
Group Finance Director & Executive Director0.83yrUS$804.03kno data
Ian Fantozzi
Chief Operating Officer8.67yrsno datano data
Stuart Simpson
Chief Investment Officerno datano datano data
Katia Mullier
Senior Compliance Officer0.25yrno datano data
Lou Layton
Head of Broker Relations & Marketingno datano datano data
Rachel Turk
Head of Corporate Development0.42yrno datano data
Pippa Vowles
Head of Talent Management1.67yrsno datano data
W. Flynn
Head of Broker Relations - USno datano datano data
Andrew Pryde
Chief Risk Officer9.17yrsno datano data

1.7yrs

Average Tenure

44yo

Average Age

Experienced Management: BEZ's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Horton
CEO & Executive Director 11.42yrsUS$2.19m0.33% $6.8m
Sally Lake
Group Finance Director & Executive Director0.83yrUS$804.03kno data
David Roberts
Independent Chairman2yrsUS$257.50k0.0097% $195.5k
Robert Stuchbery
Independent Non-Executive Director3.58yrsUS$89.50k0.012% $240.9k
John Likierman
Independent Non-Executive Director5yrsUS$78.50k0.0019% $38.5k
John Sauerland
Independent Non-Executive Director3.83yrsUS$69.77k0.0057% $115.7k
Anthony Reizenstein
Independent Non-Executive Director0.83yrUS$71.35k0.0019% $38.5k
Catherine Woods
Independent Non-Executive Director4.17yrsUS$80.13k0.0057% $115.7k
Adrian Cox
Former Director9.25yrsUS$1.65m0.16% $3.3m
Christine LaSala
Senior Independent Non-Executive Director1yrUS$78.31k0.0076% $154.2k

3.7yrs

Average Tenure

57yo

Average Age

Experienced Board: BEZ's board of directors are considered experienced (3.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BEZ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Beazley plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beazley plc
  • Ticker: BEZ
  • Exchange: LSE
  • Founded: 1986
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: UK£2.026b
  • Shares outstanding: 525.70m
  • Website: https://www.beazley.com

Number of Employees


Location

  • Beazley plc
  • Plantation Place South
  • 60 Great Tower Street
  • London
  • Greater London
  • EC3R 5AD
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BZLY.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDDec 2002
BEZLSE (London Stock Exchange)YesNew Ordinary SharesGBGBPDec 2002
2D7DB (Deutsche Boerse AG)YesNew Ordinary SharesDEEURDec 2002
BEZLBATS-CHIXE (BATS 'Chi-X Europe')YesNew Ordinary SharesGBGBPDec 2002
BEZ NBMV (Bolsa Mexicana de Valores)YesNew Ordinary SharesMXMXNDec 2002

Biography

Beazley plc provides risk insurance and reinsurance solutions in the United States, Europe, and internationally. The company's Marine segment underwrites various marine classes, including hull, energy, cargo and specie, piracy, satellite, aviation, kidnap and ransom, and war risks. Its Political, Accident & Contingency segment underwrites terrorism, political violence, expropriation, and credit risks, as well as contingency and risks associated with contract frustration. This segment also underwrites life, health, personal accident, sports, and income protection risks. The company's Property segment provides commercial, homeowners’, and construction and engineering property insurance. Its Reinsurance segment specializes in writing property catastrophe, property per risk, casualty clash, aggregate excess of loss, and pro-rata businesses. The company's Specialty Lines segment underwrites architects and engineers, healthcare, lawyers and environmental liability, market facilities business, and international financial institutions. Its Cyber & Executive Risk segment provides cyber and management liability services. The company was founded in 1986 and is based in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:20
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.