1. Generic title white
Results for the year ended 31 December 2013
Thursday, 6 February 2014

2. Disclaimer notice
Certain statements made in this presentation, both oral and written, are or may constitute “forward looking statements”
with respect to the operation, performance and financial condition of the Company and/or the Group. These forward
looking statements are not based on historical facts but rather reflect current beliefs and expectations regarding future
events and results. Such forward looking statements can be identified from words such as “anticipates”, “may”, “will”,
“believes”, “expects”, “intends”, “could”, “should”, “estimates”, “predict” and similar expressions in such statements or the
negative thereof or other variations thereof or comparable terminology. These forward looking statements appear in a
number of places throughout this document and involve significant inherent risks, uncertainties and other factors, known or
unknown, which may cause the actual results, performance or achievements of the Company, or industry results, to be
materially different from any future results, performance or achievements expressed or implied by such forward looking
statements. Given these uncertainties, such forward looking statements should not be read as guarantees of future
performance or results and no undue reliance should be placed on such forward looking statements. A number of factors
could cause actual results to differ materially from the results discussed in these forward-looking statements.
The information and opinions contained in this presentation, including any forward looking statements, are provided, and
reflect knowledge and information available, as at the date of this presentation and are subject to change without
notice. There is no intention, nor is any duty or obligation assumed by the Company, the Group or the Directors to
supplement, amend, update or revise any of the information, including any forward looking statements, contained in this
presentation.
All subsequent written and oral forward-looking statements attributable to the Company and/or the Group or to persons
acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained
elsewhere in this document.
2

3. Contents
Pages
Overview of 2013
4-8
Financials
Performance
Investments
Reserves
Capital
10
11-12
13-14
15-16
Underwriting review
17-21
Our vision
22
Outlook
23
Appendix
25-35
3

4. Generic title white
Overview of 2013

5. Exceptional underwriting result
• Profit before income tax of $313.3m (2012: $251.2m)
• Return on equity of 21% (2012: 19%)
• Gross written premiums increased by 4% to $1,970.2m (2012: $1,895.9m)
• Combined ratio of 84% (2012: 91%)
• Rate increase on renewal portfolio of 1% (2012: 3%)
• Prior year reserve releases of $218.0m (2012: $126.0m)
• Net investment income of $43.3m (2012: $82.6m)
• Second interim dividend of 5.9p taking full year dividend to 8.8p (2012: Full year 8.3p).
Special dividend of 16.1p (2012: 8.4p)
5

6. Sustained high performance
Cover
Gross premiums written ($m)
2500
Combined ratio (%)
125%
99%
2000
100%
1500
75%
1000
90%
91%
88%
84%
37%
50%
1,751.3
1,741.6
1,712.5
1,895.9
1,970.2
500
2009
2010
2011
2012
2013
38%
36%
55%
39%
62%
52%
2009
25%
0
35%
2010
Dividends per share (p)
2011
2013
Combined ratio
25%
20.0
20%
16.1
15.0
15%
8.4
10.0
5.0
Claims ratio
2012
Return on equity (%)
30%
25.0
45%
0%
Expense ratio
30.0
53%
10%
2.5
7.0
7.5
7.9
8.3
8.8
2009
2010
2011
2012
2013
24%
19%
19%
21%
5%
6%
0%
0.0
Special
2009
2010
2011
2012
2013
Interim and final
6

7. A year of significant achievement
• Record low combined ratio of 84%, with 90% average over the last 5 years
• Rate increases were achieved in specialty lines (3%) and property (3%)
• Continuing investments in:
• People
• Products – 2013: Aviation and growth of Beazley Breach Response
2014: Satellite
• Geography – offices in Dallas, Miami, Dubai and Rio de Janeiro
• Continue to deliver excellent claims service - we have won two industry awards
• NAV growth achieved consistently over the last four years and active capital
management has continued
7

8. Excellent total shareholder return (TSR) and NAV growth
250%
225%
200%
175%
150%
125%
100%
75%
50%
25%
0%
31 December 2009
31 December 2010
NAV target range
(RFR +10% p.a. to
RFR +15% p.a.)
31 December 2011
NAV growth
(Including dividends)
31 December 2012
31 December 2013
TSR growth
(1 month average)
8

9. Generic title white
Financials

10. Strong performance across all metrics
Year ended 31 Dec 2013
Year ended 31 Dec 2012
% increase
Gross premiums written ($m)
1,970.2
1,895.9
4%
Net premiums written ($m)
1,676.5
1,542.7
9%
Net earned premiums ($m)
1,590.5
1,478.5
8%
Profit before income tax ($m)
313.3
251.2
25%
Earnings per share
33.6p
26.7p
Dividend per share
8.8p
8.3p
16.1p
8.4p
Net assets per share (pence)
160.6p
147.5p
Net tangible assets per share (pence)
149.6p
133.4p
Special dividend
10

11. Portfolio delivered 1.0% in the second half as expected
100.0
7.0%
90.0
70.0
6.0%
46.9
($m)
Investment Return
5.0%
60.0
46.5
4.0%
50.0
40.0
3.0%
16.8
30.0
2.0%
20.0
43.5
29.0
Annualised Investment Return
80.0
43.3
36.1
1.0%
10.0
22.5
8.5
0.0
0.0%
2009
2010
2011
2nd half
1st half
2012
2013
Return
11

12. Portfolio mix remains stable
Dec-13
Other Credit,
2.1%
Capital Growth
Assets, 11.7%
Investment
Grade Credit,
30.5%
Dec-12
Cash and Cash
Equivalents,
8.7%
Fixed Income:
Sovereign and
Supranational,
47.0%
Other Credit,
1.7%
Capital Growth
Assets, 9.7%
Cash and
Cash
Equivalents,
7.3%
Fixed Income:
Sovereign and
Supranational,
56.2%
12

13. Strong prior year reserve releases
15.0%
225
14.0%
210
13.0%
195
12.0%
180
11.0%
165
10.0%
150
9.0%
($m)
135
120
8.0%
105
7.0%
90
6.0%
75
5.0%
60
4.0%
45
3.0%
30
2.0%
15
1.0%
0
0.0%
-15
2009
Specialty lines
2010
Political risks and contingency
2011
Life accident and health
2012
Marine
Property
2013
Reinsurance
-1.0%
% of NEP
13

14. Whole account reserve strength within our target range
% above actuarial estimate
Preferred upper end
8.2%
7.5%
6.7%
6.1%
2003
2004
6.4%
2005
8.2%
7.9%
7.4%
7.4%
6.9%
6.7%
2006
2007
2008
2009
2010
2011
2012
2013
Financial year
14

15. Capital management discipline is maintained
•
We have returned capital of $579.7m in the past 5 years
•
This represents 87% of our post 2009 rights-issue market capitalisation
100%
600
90%
500
80%
450
70%
($m)
400
350
60%
300
50%
250
40%
200
30%
150
20%
100
10%
50
0
2009
2010
Interim and final dividends
2011
Special dividend
2012
Share buybacks
2013
Percentage of market capitalisation at 2009 rights issue
5 year capital return track record
550
0%
% of market capital (03/04/2009)
15

16. Strong capital position
Sources of funds
Year ended 31 Dec 2013
Year ended 31 Dec 2012
Shareholders funds ($m)
1,338.7
1,204.5
Subordinated debt ($m)
145.0
184.3
Retail bond ($m)
124.5
122.3
1,608.2
1,511.1
Lloyd’s underwriting ($m)
935.4
876.0
US Insurance Company ($m)
107.7
107.7
1,043.1
983.7
565.1
527.4
(248.4)
(267.1)
Available surplus ($m)
316.7
260.3
Un-utilised banking facility ($m)
225.0
225.0
Total Sources of Funds
Uses of funds
Surplus ($m)
Unavailable surplus ($m)
16

17. Generic title white
Underwriting review

18. Underwriting review – 2013 achievements
• Combined ratio of 84% in line with earlier guidance
• Gross premiums written achieved 4% growth in 2013
• 2013 rate increase on renewals of 1%
• Favourable claims experience including lower than average catastrophe activity
• We continue to reserve consistently, maintaining our surplus over actuarial estimate
between 5-10%
18

19. Underwriting review
Year Ended 31 Dec 2013
Year Ended 31 Dec 2012
Gross premiums written ($m)
1,970.2
1,895.9
Net premiums written ($m)
1,676.5
1,542.7
Net earned premiums ($m)
1,590.5
1,478.5
Expenses ratio
39%
38%
Claims ratio
45%
53%
Combined ratio
84%
91%
1%
3%
Rate change on renewals
19

20. Cumulative rate changes since 2001
250%
200%
Rate Change
150%
100%
50%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Underwriting Year
Life, accident & health
Marine
Political risks & contingency
Property
Reinsurance
Specialty lines
All divisions
20

21. Underwriting review – 2014 plans
• Increasing competitive headwinds in catastrophe-driven, short tail lines
• Specialty lines continues to enjoy a more favourable rating environment
• Continued opportunities for moderate growth:
• Marine division – marine liability, aviation, satellite
• Property division – smaller risks
• Political & contingency division – political risks
• Specialty lines – employment practices liability, cyber
21

22. Growing through
Lloyd’s
Europe
Innovation and
Product Development
Broker Relations
Asia Pacific
Managing for
Performance
US
Our vision and strategic priorities
To become, and be recognised as,
the highest performing
specialist insurer
22

23. The outlook for 2014
• Well positioned in a changing and increasingly competitive market place
• We expect an annualised 2% investment yield going forward
• Premium growth of 5-10% is planned in 2014
• We continue to identify opportunities for profitable growth
23

24. Questions?
Any questions?

25. Generic title white
Appendix

26. Specialty lines incurred claims remain in line with expectations
Net incurred loss ratio at each development year
140%
Development Year
6
5
120%
4
114%
3
2
ULR
Net incurred loss ratio
100%
85%
80%
74%
62%
57%
60%
65%
53%
41%
42%
41%
52%
45%
38%
40%
20%
12%
0%
19931996
19972000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
426
459
414
443
429
452
Underwriting Year
Net ultimate premium $m
81
110
53
92
269
323
340
348
26

27. Locally underwritten US business grows 17% to $451.8m
170
GWP by major product category
160
150
140
130
120
110
($m)
100
90
80
70
60
50
40
30
20
10
0
2009
2010
Architects and Engineers professional indemnity
2011
Technology, Media & Business Services
2012
2013
Other specialty lines
Property
27

28. Zoom on rate changes since 2008
120%
115%
Rate Change
110%
105%
100%
95%
90%
2008
2009
2010
2011
2012
2013
Underwriting Year
Life, accident & health
Specialty lines
Marine
Reinsurance
Political risks & contingency
All divisions
Property
28

29. Portfolio management achieves consistent combined ratio through market cycles
160
140
120
100
80
60
40
2009
2010
2011
2012
2013
Year
29

30. Life accident & health
Year ended 31 December
2013
2012
100.3
94.4
Net premiums written ($m)
96.1
75.3
Net earned premiums ($m)
95.4
80.3
Claims ratio
74%
58%
(1%)
-
73%
73%
Gross premiums written ($m)
Rate change on renewals
Percentage of business led
•
6% increase in gross premiums
•
Losses in Australian business, although
renewal secured at significant rate
increase
30

31. Marine
Year ended 31 December
2013
2012
Gross premiums written ($m)
315.9
311.2
Net premiums written ($m)
282.1
283.1
Net earned premiums ($m)
264.4
279.6
Rate change on renewals
Percentage of business led
34%
42%
(5%)
•
Combined ratio of 72% continues
recent outstanding performance
Prior year reserve releases of $47.3m
(2012: $27.7m)
-
44%
Gross premiums increased by 2%
•
Claims ratio
•
48%
31

32. Political risks and contingency
Year ended 31 December
2013
2012
Gross premiums written ($m)
131.2
116.6
Net premiums written ($m)
110.1
102.3
Net earned premiums ($m)
98.6
98.1
Rate change on renewals
Percentage of business led
5%
12%
(1%)
•
Combined ratio 50% (2012: 52%)
Strong prior year reserve release of
$39.4m (2012: $33.1m)
(1%)
69%
Growth in gross premiums of 13% due
to development in our political books
•
Claims ratio
•
64%
32

33. Property
Year ended 31 December
2013
2012
Gross premiums written ($m)
371.4
376.7
Net premiums written ($m)
308.7
275.7
Net earned premiums ($m)
302.6
266.4
Rate change on renewals
Percentage of business led
6%
74%
Combined ratio of 84% (2012: 101%)
53%
3%
Rate change on renewals of 3%
•
40%
Increase in net premiums of 12% with
improved contribution to group result
of $65m
•
Claims ratio
•
73%
33

34. Reinsurance
Year ended 31 December
2013
2012
Gross premiums written ($m)
221.6
188.6
Net premiums written ($m)
171.5
146.7
Net earned premiums ($m)
165.3
139.0
Rate change on renewals
Percentage of business led
18%
5%
38%
Combined ratio of 49% (2012: 92%)
63%
(3%)
Increase in gross premiums of 17% in
spite of rate decreases on renewals of
(3%)
•
Claims ratio
•
37%
34

35. Specialty lines
Year ended 31 December
2013
2012
Gross premiums written ($m)
829.8
808.4
Net premiums written ($m)
708.0
659.6
Net earned premiums ($m)
664.2
615.1
61%
61%
3%
3%
96%
96%
Claims ratio
Rate change on renewals
Percentage of business led
•
Positive rate change on renewals
•
3% increase in gross premiums written
•
Prior year reserve releases of $46.6m
(2012: $51.5m)
35