Beazley Plc - Results 2014

1. Generic title white
Results for the year ended 31 December 2014
Thursday, 5 February 2015

2. Disclaimer notice
2
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.

3. Contents
Overview of 2014 4-8
Financials
Performance 10
Investments 11-12
Reserves 13-14
Capital 15-16
Underwriting review 17-21
Our vision and strategy 22
Outlook for 2015 23
Appendix 25-35
3
Pages

4. Generic title white
Overview of 2014

5. Strong performance in a competitive market
• Profit before income tax of $261.9m (2013: $313.3m)
• Return on equity of 17% (2013: 21%)
• Gross premiums written increased by 3% to $2,021.8m (2013: $1,970.2m)
• Combined ratio of 89% (2013: 84%)
• Rate reduction of 2% on renewal portfolio (2013: increase of 1%)
• Prior year reserve releases of $158.1m (2013: $218.0m)
• Net investment income of $83.0m (2013: $43.3m)
• Second interim dividend of 6.2p (2013: 5.9p) taking full year dividend to 9.3p (2013:
Full year 8.8p). Special dividend of 11.8p (2013: 16.1p)
5

6. • Combined ratio of 89% in line with our long term average
• Growth in gross premiums written of 3% to $2,021.8m
 US platform generated premiums in excess of $0.5bn for the first time
 Specialty lines, our largest division, achieved growth of 8%
• Investment in:
 People – success in recruiting and retaining the best quality talent
 Products
 Infrastructure to enhance ease of doing business
 Geographies - opened offices in Dubai and Dallas
• Active capital management continues
• Investment team is strengthened and insourced
Continued progress with our strategic initiatives
6

7. Cover
7
1,741.6 1,712.5
1,895.9 1,970.2 2,021.8
0
500
1000
1500
2000
2500
2010 2011 2012 2013 2014
Gross premiums written ($m)
19%
6%
19%
21%
17%
0%
5%
10%
15%
20%
25%
2010 2011 2012 2013 2014
Return on equity (%)
Sustained high performance
7.5 7.9 8.3 8.8 9.3
2.5
8.4
16.1
11.8
0
5
10
15
20
25
30
2010 2011 2012 2013 2014
Dividends per share (p)
Special Interim and second interim
52%
62%
53%
45% 49%
36%
37%
38%
39%
40%
88%
99%
91%
84% 89%
0%
25%
50%
75%
100%
125%
2010 2011 2012 2013 2014
Combined ratio (%)
Expense ratio Claims ratio

8. Excellent total shareholder return (TSR) and NAV growth
8
Shareholderreturn(%)
0%
25%
50%
75%
100%
125%
150%
175%
200%
225%
250%
275%
300%
325%
31 December 2009 31 December 2010 31 December 2011 31 December 2012 31 December 2013 31 December 2014
NAV target range
(RFR +10% p.a. to
RFR +15% p.a.)
NAV growth
(Including dividends)
TSR growth
(1 month average)

9. Generic title white
Financials

10. Strong performance across all metrics
Year ended
31 December 2014
Year ended
31 December 2013
% Increase /
(Decrease)
Gross premiums written ($m) 2,021.8 1,970.2 3%
Net premiums written ($m) 1,732.7 1,676.5 3%
Net earned premiums ($m) 1,658.9 1,590.5 4%
Profit before income tax ($m) 261.9 313.3 (16%)
Earnings per share (pence) 26.1 33.6
Dividend per share (pence) 9.3 8.8
Special dividend (pence) 11.8 16.1
Net assets per share (pence) 170.3 160.6
Net tangible assets per share (pence) 158.3 149.6
10

11. Portfolio delivered 1.9% annualised return
11
Investmentreturn($m)
AnnualisedInvestmentReturn
8.5
22.5
36.1
46.829.0
16.8
46.5
43.3
36.2
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
0
10
20
30
40
50
60
70
80
90
100
2010 2011 2012 2013 2014
1st half 2nd half Return

12. Minor changes to portfolio mix
12
31 December 2014 31 December 2013
Government,
Quasi
Government &
& Supranational,
41.6%
Investment Grade Credit,
33.5%
Other Credit,
1.8%
Syndicated Bank
Loans, 2.3%
Equity linked
funds, 3.3%
Hedge funds/uncorrelated
strategies, 8.3%
Illiquid credit assets, 1.0%
Cash and Cash
Equivalents, 8.2%
Government,
Quasi
Government &
Supranational,
42.8%
Investment Grade Credit,
34.8%
Other
Credit, 2.1%
Equity linked
funds, 3.2%
Hedge funds/uncorrelated
strategies, 8.4%
Illiquid credit assets, 0.1%
Cash and Cash
Equivalents, 8.6%

13. Continued prior year reserve releases
13
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
-15
0
15
30
45
60
75
90
105
120
135
150
165
180
195
210
225
2010 2011 2012 2013 2014
Specialty lines Political risks and contingency Life accident and health Marine Property Reinsurance % of NEP
Reservereleases($m)

14. Whole account reserve strength within our target range
14
Aboveactuarialestimate(%)
6.1%
6.7%
6.4%
6.7%
7.5% 7.4%
8.2%
7.9%
7.4%
6.9%
8.2%
7.1%
0%
5%
10%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

15. Capital management discipline continues
• We have returned capital of $711.6m in the past 6 years
• This represents 112% of our 2009 post rights-issue market capitalisation
15
Fundsreturnedtoshareholders($m)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
120%
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
2009 2010 2011 2012 2013 2014
Percentageofmarketcapitalisationat2009rightsissue
Interim and final dividends Special dividend Share buybacks % of market capital

16. Updated capital position remains strong
16
Year ended
31 December 2014
$m
Year ended
31 December 2013
$m
Lloyd’s economic capital requirement (ECR) 1,359.0 1,321.8
Capital for US insurance company 107.7 107.7
1,466.7 1,429.5
• Group capital requirement:
• Our funding is made up of our own equity (on a Solvency II basis) plus $256.3m of debt
and an undrawn banking facility of $225.0m.
• At 31 December 2014 we have surplus capital of 30% of ECR, including Solvency II
adjustments.
• We will be paying a special dividend of 11.8p, reducing the surplus to 20% which is
within our current target range of 15% to 25% of ECR.

17. Generic title white
Underwriting review

18. Underwriting review – 2014 achievements
18
• Combined ratio of 89%
• 3% growth achieved on gross premiums written in 2014
 19% growth in locally underwritten US premiums to $537.0m
• 2014 rate reduction on renewals 2%
• Favourable claims experience including lower than average catastrophe activity
• We continue to reserve consistently, maintaining our surplus over actuarial estimate
between 5-10%

19. Underwriting review
Year Ended
31 December 2014
Year Ended
31 December 2013
Gross premiums written ($m) 2,021.8 1,970.2
Net premiums written ($m) 1,732.7 1,676.5
Net earned premiums ($m) 1,658.9 1,590.5
Expense ratio 40% 39%
Claims ratio 49% 45%
Combined ratio 89% 84%
Rate change on renewals (2%) 1%
19

20. 20
Cumulative rate changes since 2008Ratechange(%)
90%
95%
100%
105%
110%
115%
120%
2008 2009 2010 2011 2012 2013 2014
All divisions

21. Cumulative rate changes since 2008Ratechange(%)
90%
95%
100%
105%
110%
115%
120%
2008 2009 2010 2011 2012 2013 2014
Life, accident & health All divisions
20

22. Cumulative rate changes since 2008Ratechange(%)
90%
95%
100%
105%
110%
115%
120%
2008 2009 2010 2011 2012 2013 2014
Life, accident & health Marine Political risks & contingency Property Reinsurance All divisions
20

23. Cumulative rate changes since 2008Ratechange(%)
90%
95%
100%
105%
110%
115%
120%
2008 2009 2010 2011 2012 2013 2014
Life, accident & health Marine Political risks & contingency Property Specialty Lines Reinsurance All divisions
20

24. 2015 underwriting outlook
21
• Rating trends expected to continue
 Increasing competition in large risk market
 Positive effect of US and UK economic growth
• Continued opportunities for moderate growth
 Specialist SME products
 US strategy: target growth by offering more products in our major US offices
 Green shoots: transaction liability, US LAH, environmental
 Investing in talent who bring new expertise and new relationships

25. Our strategy is directed towards the achievement of our vision – to become,
and be recognised as, the highest performing specialist insurer – and
comprises:
• Prudent capital allocation to achieve a well diversified portfolio that is resistant
to shocks in any individual line of business
• The creation of an environment in which talented individuals with
entrepreneurial spirit can build successful business
• The ability to scale our operations to ensure that client and broker service keeps
pace, and wherever possible improves, as the company grows
• Consistent investment in product innovations to improve our clients’ risk transfer
Our vision and strategy
22

26. Outlook for 2015
• Diversified and well balanced portfolio allowing flexibility in a competitive market
• Difficult market for premium growth - US platform increasingly valuable
• Rating environment to remain challenging
• Further investment in people and products
• Continue to grow organically
23

27. Questions?
Any questions?

28. Generic title white
Appendix

29. Specialty lines incurred claims remain in line with expectations
Net ultimate premium $m
26
74%
115%
89%
62%
48%
45%
48% 51%
71%
70%
62% 60%
52%
28%
15%
79 110 54 93 268 320 339 351 428 462 424 441 432 444 479
0%
20%
40%
60%
80%
100%
120%
140%
1993-
1996
1997-
2000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
6 to latest 6
5 4
3 2
ULR
Net incurred loss ratio at each development year
Netincurredlossratio(%)

30. US gross premium over 10 years
27
0
100
200
300
400
500
600
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Architects and Engineers professional indemnity Technology, Media and Business Services
Other specialty lines Property
PCG, Marine & Accident and Health
USgrosspremiums($m)

31. Cumulative rate changes since 2001
28
50%
100%
150%
200%
250%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Life, accident & health Marine Political risks & contingency Property
Reinsurance Specialty lines All divisions
Cumulativeratechange(%)

32. 29
Portfolio management achieves consistent combined ratio through market cycles
40
60
80
100
120
140
160
2010 2011 2012 2013 2014
Combinedratio(%)

33. Life accident & health
• 32% increase in gross premiums
written
• Positive rate change, mainly in
Australian business
Year ended 31 December
2014 2013
Gross premiums written ($m) 132.2 100.3
Net premiums written ($m) 113.7 96.1
Net earned premiums ($m) 103.0 95.4
Claims ratio 60% 74%
Rate change on renewals 9% (1%)
Percentage of business led 68% 73%
30

34. Marine
• 3% increase in gross premium written
• Combined ratio of 78% (2013: 72%)
• Prior year reserve releases of $40.2m
(2013: $47.3m)
Year ended 31 December
2014 2013
Gross premiums written ($m) 325.2 315.9
Net premiums written ($m) 289.9 282.1
Net earned premiums ($m) 282.6 264.4
Claims ratio 38% 34%
Rate change on renewals (6%) (5%)
Percentage of business led 43% 44%
31

35. Political risks and contingency
Year ended 31 December
2014 2013
Gross premiums written ($m) 123.2 131.2
Net premiums written ($m) 101.2 110.1
Net earned premiums ($m) 96.9 98.6
Claims ratio 27% 5%
Rate change on renewals (2%) (1%)
Percentage of business led 70% 69%
32
• Combined ratio of 78% (2013: 50%)
• Dubai office opened

36. Property
Year ended 31 December
2014 2013
Gross premiums written ($m) 344.7 371.4
Net premiums written ($m) 297.6 308.7
Net earned premiums ($m) 287.9 302.6
Claims ratio 42% 40%
Rate change on renewals (1%) 3%
Percentage of business led 75% 74%
33
• Combined ratio consistent at 86%
(2013: 84%)
• Focus on smaller risks
• Continued positive contribution to
group’s profitability

37. Reinsurance
• Combined ratio of 69% (2013: 49%)
• Significant rate pressure
Year ended 31 December
2014 2013
Gross premiums written ($m) 200.8 221.6
Net premiums written ($m) 153.8 171.5
Net earned premiums ($m) 160.1 165.3
Claims ratio 37% 18%
Rate change on renewals (10%) (3%)
Percentage of business led 39% 38%
34

38. Specialty lines
• 8% increase in gross premiums written
• Combined ratio of 98% (2013: 97%)
• Contribution to group profit of $71.8m
(2013: $53.2m)
• Prior year reserve releases $29.7m
(2013: $46.6m)
Year ended 31 December
2014 2013
Gross premiums written ($m) 895.7 829.8
Net premiums written ($m) 776.5 708.0
Net earned premiums ($m) 728.5 664.2
Claims ratio 61% 61%
Rate change on renewals - 3%
Percentage of business led 96% 96%
35