W. R. Berkley Premium Growth Accelerates as Underwriting Improves
The insurer’s combined ratio improved to 90.0% as catastrophe losses declined.
W. R. Berkley Corp. (WRB), the specialty insurer, reported record gross premiums written of $4.144 billion as growth accelerated in the second quarter. Gross premiums rose 4.2% from a year earlier, compared with 2.8% growth in the first quarter.
The stronger premium trajectory coincided with improved underwriting margins and lower catastrophe losses, though earnings declined from the first quarter’s records. Net premiums written increased 2.4% to $3.430 billion, accelerating from 1.3% growth in the prior quarter.
Revenue rose 1.2% from a year earlier to $3.716 billion. Net income increased 12.7% to $452.3 million, and diluted earnings rose to $1.15 a share from $1.00. Net income fell 12.2% sequentially, while earnings declined from $1.31 a share in the first quarter.
Pre-tax underwriting income rose 21.8% to $317.5 million. The combined ratio improved 1.6 percentage points from a year earlier, driven by a lower loss ratio, while catastrophe losses declined 37.2% to $62.4 million. The current-accident-year combined ratio excluding catastrophes improved to 88.1% from 88.4%.
Insurance remained the premium-growth engine, with gross premiums written rising 5.4% and net premiums increasing 3.7%. Professional-liability net premiums grew 11.6% to $333.4 million, outpacing the company’s other major insurance lines.
Reinsurance & Monoline Excess premiums declined, but the segment’s combined ratio improved 8.1 percentage points to 79.3%. Its pretax income rose 14.3% to $145.5 million as the loss ratio fell to 49.2%.
Record net investment income of $418.7 million supported operating income, which rose 18.2% to $497.1 million, or $1.27 a share. Net investment results swung to a $55.2 million loss from a $31.0 million gain a year earlier, widening the gap between operating and reported earnings.
Berkley returned $334.1 million to shareholders, nearly matching the first quarter’s total. The mix shifted to $185.5 million of special dividends and $111.5 million of repurchases, after the company spent $302.4 million on buybacks in the prior quarter.