Lloyd's of London insurer Beazley today boasted best-ever first-half results as the cost of buying protection against natural disasters such as hurricanes soared.

Profits rose from £46 million to £69.9 million in the first six months of the year. However, after a charge relating to currency fluctuations, they fell 55% to £20.1 million.

Beazley jacked up its prices by an average of 5% during the first half, driven by higher rates for catastrophe insurance following last year's severe hurricane season.

Rates for oil explorers were up 35% in the Gulf of Mexico while commercial property rates in the US were up 13%.

“Hurricanes Ike and Gustav in the US, along with other natural catastrophes, served as a timely reminder of the important role insurance plays,” said chief executive Andrew Horton.

Beazley, known for its expertise in property insurance, is increasing its exposure to catastrophes such as storms and earthquakes to take advantage of improving returns.

The devastation caused by last year's hurricanes cost the insurance industry worldwide about $25 billion (£15.1 billion) in claims, leading to the price hikes.

Beazley's marine division has also benefited from the heightened risk posed by piracy and insurgency in the Gulf of Yemen, Nigeria and the Middle East.