The use of the word "beloved" shows that there was a relationship of respect and admiration between the people and their leader.
The leader we are referring to is Beowulf, who ruled the Geats admirably. He is described as a fair, protective, ethical, and loyal leader. This made the people admire him intensely and have a great feeling of affection for him.
Beowulf also loved his people and so he acted correctly, leaving the people with a satisfying life and proud of the way he ruled.
The mutual respect between the leader and the people made the region prosper and Beowulf's fame spread across the world.
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