Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Beazley full year on target as natural disaster claims in margin
A nine month trading update form insurers Beazley LON:BEZ has flagged that gross written premiums for the period are up by 22% and whilst mark to market investment losses have been accrued due to rising bond yields, this also means that significant increases in future investment returns will be seen. Claims arising from natural catastrophes have been within the margins held and full year guidance remains unchanged.
#2. Strong value proposition to help The Works over difficult Christmas
The Works LON:WRKS has issued a half year trading update for the 26 weeks to 30th October. The company was impacted by a cybersecurity attack back in May which caused some short term operational issues but like for like sales over the period were up by 0.6%. The company is mindful of the challenges that many consumers are facing right now but believes that its value proposition will put it in a strong place over the critical Christmas period.
#3. Pennon to pay customers not to use water
Pennon LON:PNN, the owners of South West Water, have announced a first of its kind initiative to encourage consumers in Cornwall to cut water usage. If levels in a local reservoir can return to 30% of normal by the end of the year, each customer will receive a £30 rebate. Triggering this would see the company take a £10m hit, although the consequent reduction in demand would lower some marginal costs. This is the first time such a scheme has been run and from a societal viewpoint the performance here will be worth watching. Although missing from the note, the reservoir in question is only 16% full right now, so significant rainfall as well as reduced water usage will arguably be necessary to see any payout being made.
