Beazley's first-half profit hurt by rising U.S. interest rates

(Reuters) - Lloyd's of London insurer Beazley Plc (BEZG.L) reported a 64 percent fall in its first-half pretax profit on Friday, as its investment returns were hurt by the impact of rising U.S. interest rates on its bond portfolio.

Gross premiums written, however, rose 15 percent to $1.32 billion (1.01 billion pounds), helped by Beazley's property division, where rates have risen sharply after the heavy catastrophe losses suffered by insurers and reinsurers last year.

Separately, Beazley also said Finance Director Martin Bride would retire in the second quarter of 2019.

"Although growth of 14.7% is a clear indicator that the group remains on track with its growth ambitions, the news that FD Martin Bride will retire in 2Q 2019 is a potential disappointment for shareholders," Jefferies analysts said.

Insurance industry premiums, pressured by tough competition, are now rising after the industry faced record bills from hurricanes, earthquakes and wildfire of over $135 billion last year.

All five of Beazley's underwriting divisions reported growth in written premiums, with a 25 percent jump to $243.4 million in the property business.

The underwriter, which provides marine, casualty and property insurance and reinsurance, said its pretax profit fell to $57.5 million, for the six months ended June, from $158.7 million a year earlier.

Beazley's combined ratio deteriorated to 95 percent in the period from 90 percent in the previous year. A ratio below 100 percent means an insurer earns more in premiums than it pays out in claims.

Beazley stuck to its forecast and expects double-digit premium growth in percentage terms in 2018 and a combined ratio in the low-to-mid nineties.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amrutha Gayathri)