Yahoo Finance Lloyd's of London insurer Beazley battered as finance boss retires
Shares in Lloyd's of London insurer Beazley plunged this morning after it posted a 64pc fall in profits and announced the departure of its finance head.
The London-based 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.
Shares in the company, which offers insurance cover for a range of risks including terrorism and kidnappings, fell 12pc on the back of the results.
Beazley said it has 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 volume of claims.
Beazley chief executive Andrew Horton said: "Following the catastrophes of 2017, we will experience below average reserve releases from prior years during 2018."
He added that the company had also picked EY as its new auditor, replacing KPMG following a tendering process.
The firm said in a separate statement that its finance director Martin Bride, who has been with the business since 2009, would retire next year and it was looking for a replacement.
