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In the wake of the world’s largest global IT outage, caused by a faulty software update from cybersecurity firm CrowdStrike, specialist insurer Beazley is expecting further business opportunities in cyber risk insurance.
Adrian Cox, chief executive of the FTSE 100-listed company, said the CrowdStrike incident had tested Beazley’s approach to underwriting cyber risks, but he said it had proven highly resilient.
Beazley led the FTSE 100 in gains, rising 10.8 per cent, or 68.5 pence, to 705.5 pence, as the company, which manages six Lloyd’s of London syndicates, reported record first-half profits as written insurance premiums rose 6.9 per cent.
Following a strong first-half performance, Beazley’s boss said the company sees cyber risk opportunities in the remainder of the year and is confident of meeting its guidance for high single-digit annual growth.
Beazley chief executive Adrian Cox said the CrowdStrike outage had tested Beazley’s approach to cyber risk underwriting, but he said it had proven highly resilient.
Global markets were volatile as fears of a US recession rose and fell. The FTSE 100 index fell 0.3 percent, or 21.91 points, to 8,144.97, and the FTSE 250 lost 0.3 percent, or 67.45 points, to 20,508.58.
Weakness in heavyweight commodity stocks was a drag, and dollar gainers were under pressure.
Among oil stocks, BP fell 1.4 percent, or 6 pence, to 431.25 pence, hit by a downgrade from buy to hold by analysts at HSBC.
Gold prices fell further from record highs, prompting precious metals mining companies to retreat.
Among them, Endeavour Mining added 0.1 per cent, or 1p, to 1,553p, hurt by a cut in its target price by analysts at Berenberg.
Returning to the day’s results, generic drugs firm Hikma Pharmaceuticals rose 8.3 percent, or 152 pence, to 1,992 pence, while raising its full-year guidance after first-half profits jumped 43 percent.
Action Observation – TI Fluid
Shares in TI Fluid Systems rose after it raised its interim dividend by 4.3 percent and reiterated its full-year guidance.
The automotive components maker reported a rise in half-year profit to £61.2m, beating market expectations, even as revenue fell 1.4 per cent on a constant currency basis.
First-half bookings rose 11 per cent to £1.29 billion, including £517 million in electric vehicle purchases.
Shares rose 13.6 percent, or 15.2 pence, to 127.2 pence.
But Spirax Group fell 7.5 per cent, or 635 pence, to 7,900 pence as the maker of industrial and commercial steam systems saw its first-half results fall short of market expectations, although the FTSE 100-listed firm said it expected the second half to be stronger.
Away from large caps, construction company Morgan Sindall gained 7 per cent, or 195 pence, to 2,970 pence as its full-year performance was on track to be slightly better than earlier expectations after a record first-half performance.
Electronics component maker TT Electronics gained 3.2 percent, or 4.5 pence, to 143.5 pence after raising its interim dividend even as first-half profit and revenue declined.
Mears Group added 4 percent, or 13.5 pence, to 353.5 pence as the social housing and maintenance services company saw its first-half profits rise 44 percent while revenues rose 10 percent.
Meanwhile, former Mears boss Bob Holt has taken the first step toward creating a new powerhouse in energy services through the Earnz corporation, of which he is chairman.
The company has acquired mechanical engineering services firm Cosgrove & Drew and South West Heating Services for a total of £3.11m and announced a new share placement to raise £4m to fund the deals and provide additional working capital.
The placement shares were trading at 7.5 pence each. Earnz shares were flat at 8.25 pence.
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