Rising US rates weigh on Beazley returns

LLOYD’S of London insurer Beazley blamed rising interest rates and claim costs as it posted a 64pc fall in profits yesterday.

The business blamed the profit decline on an 80pc fall in investment returns over the last six months as a result of the “marked rise” in US interest rates, as well as an increase in claims costs.

The company also announced the retirement of Martin Bride, its finance director, next year. Shares in Beazley, which offers insurance cover for a range of risks including terrorism and kidnapping, fell 1.5pc to close at 549p.

Beazley said it had now paid out $238m (£182m) to businesses and communities affected by natural catastrophes last year, which tore through the US and Mexico.

The series of deadly weather events cost the sector millions and Beazley was forced to turn to retired staff members to help deal with the sudden high volume of claims.