(CTN News) – It has been a difficult year for Beazley (LON: BEZ) shares as they have not outperformed the market.
Over the last 12 months, the stock has lost over 15% of its value, while other companies, such as Aviva and Legal & General, have lost over 7.25% and 10.25%, respectively.
As a whole, these shares have lagged behind the FTSE 100 index in terms of performance.
The growth continues
There are a number of companies that provide insurance services in the UK and other countries, including Beazley. In addition to aviation services, the company also provides contingency, cyber, healthcare, and international management liability services, among others.
During the past few years, Beazley has experienced a growth in its business. During 2021, it was more than $4.6 billion in gross premiums written, but in 2022, it was more than $5.26 billion.
According to the company’s financial report, its net premiums written increased by 4% to $3.87 billion, while revenue increased by 4% to $3.46 billion. Its profit after tax dropped from over $308 million to $160 million in less than a year.
According to recent trading statements, the company’s gross premiums grew by 12% to more than $1.37 billion in the last trading period. It is reported that net premiums have increased by 24% to more than $1.06 billion, while renewal rates have increased by 10%.
A net income of $104 million was earned as a result of its investments.
As a result of property risks, digital risks, and cyber risks, Beazley’s revenue grew.
Nevertheless, the growth in specialty risks and MAP risks was offset by slower growth in other divisions.
Beazley has recently been upgraded by AM Best. According to the company, the long-term issuer credit rating outlook has been raised from stable to positive.
As well, the company’s Lloyd’s syndicates have been affirmed as creditworthy.
The price of Beazley’s stock is considered bullish by analysts. Berenberg analysts reaffirmed their view that 880p is the target price for the year last week. Similarly, JP Morgan, Morgan Stanley, Numis, and Jefferies analysts have reiterated their bullish outlooks.
Forecast of Beazley’s share price for the next few months
As can be seen from the daily chart, the BEZ stock price has been in a bearish trend for the past few months. As a result, the share price of the company has dropped from a high of 680p to a low of 560p overall.
Additionally, it has formed what is known as a death cross, which is formed when the 50-day and 200-day exponential moving averages (EMAs) cross over each other.
While analysts are bullish on the stock in the short term, the death cross pattern suggests that a bearish breakout may occur in the near future.
There will be a confirmation of the breakout if the price moves below the support at 554p at the end of this month. It is expected that if this happens, the next level that needs to be watched will be at 504p (the low from March 20th).