July 23 (Reuters) - Insurer Beazley Plc reported a 27 percent slide in first-half profit due to reduced investment income and the impact of foreign exchange losses.
The Dublin-based company, which offers marine, casualty and property insurance and reinsurance, said it expects higher interest rates to boost its investment yield by 2 percent in the second half.
“Investment returns were down due to mark to market losses in our fixed income holdings caused by rising interest rates. Looking forward, however, higher interest rates promise enhanced investment returns,” Chief Executive Andrew Horton said in a statement.
Beazley’s pre-income tax profit declined to $82.3 million in the six months to June, from $112.9 million a year earlier.
Investment return fell about 99 percent to $300,000, while Beazley’s net earned premiums rose 8 percent to $758.8 million.