Beazley changes reporting currency
This article appears courtesy of Reactions.
Lloyd’s insurer Beazley is to change its reporting currency to US dollars from 2010 onwards.
The move is being done to reduce the volatility of future reported earnings because of foreign exchange, particularly foreign exchange on non-monetary assets which has greatlydistorted earnings for the industry in the past two years.
The decision follows Beazley's announcement in January 2010 that it will maintain underwriting capital in the currencies of written premiums, following its expansion into US through the acquisition of First State in early 2009.
Beazley joins Catlin and Lancashire as a dollar reporting company. Most companies in the market still report in sterling, including Amlin, Brit, Chaucer, Hardy, Hiscox, and Novae.