Beazley share price death cross pattern points to more woes

Beazley (LON: BEZ) share price has underperformed the market this year. The stock has dropped by more than 15% this year while companies like Aviva and Legal & General have slipped by over 7.25% and 10.25%. All these shares have lagged the FTSE 100 index.

Beazley vs Aviva, Legal & General, FTSE 100

Growth continuing

Beazley is a leading company that provides insurance services in the UK and other countries. It provides services like aviation, contingency, cyber, healthcare, and international management liability among others.

Beazley has seen its business grow in the past few years. Its gross premiums written jumped from over $4.6 billion in 2021 to over $5.26 billion. The company’s net premiums written jumped to $3.87 billion while revenue soared by 4% to $3.46 billion. Its profit after dropped from over $308 million to $160 million.

The most recent trading statement revealed that its gross premiums jumped by 12% to over $1.37 billion. Net premiums jumped to 24% to more than $1.06 billion while premium rates on renewal business jumped by 10%. Its net income from investments rose to $104 million.

Beazley’s revenue growth was driven by property risks, digital, and cyber risks. This growth was offset by slowing growth in divisions in specialty risks and MAP risks.

The most recent Beazley news was an upgrade from AM Best. In a statement, the company raised the long-term issuer credit rating (ICR) outlook from stable to positive. It also affirmed credit rating of the company’s Lloyd’s syndicates.

Analysts are bullish about Beazley’s stock price. Last week, analysts at Berenberg reiterated their outlook to 880p. Similarly, analysts at JP Morgan, Morgan Stanley, Numis, and Jefferies have reiterated their bullish views.

Beazley chart by TradingView

The daily chart shows that the BEZ stock price has been in a bearish trend in the past few months. In all, the shares have dropped from a high of 680p to a low of 560p. It has also formed a death cross, which happens when the 50-day and 200-day exponential moving averages (EMA).

Therefore, while analysts are bullish on the stock, the death cross pattern points to a bearish breakout in the coming days. The breakout will be confirmed if the price moves below the support at 554p. If this happens, the next level to watch will be at 504p (March 20th low).