* H1 cash profit $287 mln vs $343 mln
* Sees FY GWP $13.7-$14.1 bln vs pvs guidance of $14.2-$14.6
* Shares slump over 11 pct to a 1-1/2 mth low (Adds shares, guidance, CEO quote)
SYDNEY, Aug 17 (Reuters) - QBE Insurance Group QBE.AX , Australia's No.1 insurer by premium income, posted a 39 percent drop in first-half cash profit after higher claims, and cut its full-year guidance, sending its shares down more than 10 percent.
The insurer, which generates almost three-quarters of its premiums abroad, has been taking steps to boost earnings and reinstate investor confidence after years of underperformance. a negative or low interest rate environment globally, a China-led slowdown in Asia and continued weaknesses in some North American and Australian market segments are weighing on earnings growth.
"We are responding decisively with price increases, revised terms and conditions and other portfolio adjustments, and remain confident that these actions will benefit the claims ratio in 2017," CEO John Neal said in a statement.
Its shares slumped as much as 11.5 percent in early trading to its lowest since June 28. At 0054 GMT, they were down 9.3 percent. QBE shares have underperformed the benchmark index this year, falling over 19 percent compared with a 4 percent gain in S&P/ASX 200 .AXJO .
On Wednesday, QBE said cash profit fell to $287 million in the six months to June 30 compared with $471 million a year ago and analysts' forecasts of $343 million. The insurer lifted its interim dividend by 5 percent to 21 Australian cents a share.
Gross written premium slipped 6.7 percent to $8.1 billion, forcing the Sydney-based company to lower its full-year target to between $13.7 billion and $14.1 billion from $14.2 billion to $14.6 billion previously.
($1 = 1.2999 Australian dollars)