Beazley Maintains Guidance Despite Global IT Glitch Impact

Insurer Beazley announced on Tuesday that it would not adjust its guidance following a global IT glitch that impacted an estimated 8.5 million Windows-operated devices. The incident disrupted transport systems and affected financial markets.

Company Statement:

Beazley addressed the situation in a statement: “Given the unprecedented nature of this event and Beazley’s position as a leading cyber insurer, the company has elected to provide an update on its position in relation to the outage.”

Based on current information, the company confirmed that the IT glitch would not alter its undiscounted combined ratio guidance of low-80s for the full year.

Upcoming Updates:

Beazley will update the market on its first-half performance on August 8 and provide any further relevant information about the incident.

Despite the global IT glitch, Beazley’s shares, which have risen by around 25% year-to-date, closed down 3.3% on Friday due to concerns about potential surges in business interruption claims.

Nature of the Glitch:

CrowdStrike Holdings, the cybersecurity firm involved in the incident, clarified that the issues were caused by a faulty systems update rather than a malicious attack.

This information may alleviate concerns about the potential impact on Beazley’s insurance claims.

Financial Impact:

Beazley’s cyber insurance book represented around one-fifth of its gross premiums for the 2023 fiscal year. Analysts from Jefferies noted “limited risk” to the company’s special capital returns in 2024 and have projected a $400 million buyback for the year.