Significant Capacity Purchase

Beazley Group PLC
30 September 2004


Beazley Group Plc

30 September 2004


             Significant Capacity Purchase for 2005 Year of Account


Beazley Group plc ('Beazley'), one of the Lloyd's market leaders, is pleased to
announce that through the Lloyd's auction process it has been successful in
purchasing additional 2005 capacity of £109m on Syndicate 623 at a total cost of
£1m (equivalent to an average price of 0.9p per £1 of capacity).


The capacity of the managed syndicates is intended to remain at £741m for the
2005 year. As a result of this purchase, Beazley's ownership of its managed
syndicates will increase from 54% in 2004 to approximately 69% for the 2005 year
of account.


Beazley are investigating options for providing the necessary solvency capital
required by Lloyd's to support the acquired underwriting capacity. Such options
include utilising the £70m bank facility arranged through Lloyds TSB earlier
this year, and may also include arranging support from reinsurance providers and
/ or the raising of subordinated debt or equity capital.


In its recent interim results for the six months ended 30 June 2004, Beazley
reported a combined ratio on its managed syndicates of 85%, 2% year-on-year
renewal rate increases and profit before tax of £22.2m. The Group also announced
the formation of Beazley USA Services Inc. to enhance access to attractive lines
of business in the US.


Commenting on the capacity purchase Andrew Beazley, Chief Executive, said:

'I am delighted that the Group has grasped this excellent opportunity to
substantially increase the owned portfolio on attractive terms. This increases
shareholders' participation in the strong performance of our managed syndicates
providing future prospects for earnings growth whilst we continue to maintain
rating discipline.'


For further information, please contact:


Beazley Group plc

Andrew Beazley                              Tel: [phone]

Andrew Horton

Nicholas Furlonge


Finsbury                                    Tel: [phone]

Melanie Gerlis

Nicola Hobday






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