Berkley's Insurance Underwriting Growth Cools After a Hot Quarter

The Tip Desk · October 20, 2026 · 3 min read

Pre-tax underwriting income rose 10.6% to $237.7 million as net investment income reached $383.5 million.

W. R. Berkley Corporation (WRB), a Greenwich, Connecticut, insurance holding company, reported that Insurance segment pre-tax underwriting income rose 10.6% to $237.7 million in the third quarter of 2026, a slower year-over-year pace than the 21.8% increase recorded in the second quarter.

The specialty writer’s Insurance segment pre-tax income was $523.4 million. Gross premiums written in that segment were $3.56 billion, and net premiums written were $2.90 billion.

Consolidated net income to common stockholders was $446.0 million, or $1.14 a share, compared with $511.0 million, or $1.28 a share, a year earlier. Operating income, which excludes after-tax net investment gains or losses and related expenses, plus after-tax net foreign-currency gains or losses, was $456.5 million, or $1.17 a share. Annualized return on beginning-of-year common stockholders’ equity was 18.4%, and operating return on the same basis was 18.8%.

Gross premiums written were $3.95 billion, and net premiums written were $3.27 billion. Gross premiums written were below the record $4.14 billion in the second quarter.

The reported combined ratio was 90.8%. The current accident-year combined ratio before catastrophe losses of 2.7 loss-ratio points was 88.1%, matching the second-quarter accident-year figure. Average rate increases excluding workers’ compensation were approximately 4.0%, down from approximately 7.2% in the first quarter.

Chairman, chief executive officer and president W. Robert Berkley, Jr., said the company generated an annualized 18.8% operating return on beginning-of-year stockholders’ equity and pointed to the 88.1% accident-year combined ratio excluding catastrophe losses. He said the breadth of 60 specialty businesses allowed greater stability as product-line cycles decoupled.

Net investment income was $383.5 million, up from $351.2 million a year earlier. The core portfolio contributed $369.1 million, a 12.0% increase. Berkley said income from fixed-maturity securities increased 10.3% over the corresponding period a year ago and that reinvestment yields continue to exceed the portfolio’s book yield.

Net realized and unrealized investment results were a $17.5 million loss, versus a $78.8 million gain a year earlier. Operating income was higher than a year earlier even as GAAP earnings declined.

Reinsurance & Monoline Excess gross premiums written were $391.5 million, and net premiums written were $368.6 million. Segment pre-tax income was $133.3 million. The Insurance segment remained the larger of the two property-casualty reportable segments by gross premiums written.

Net invested assets were $33.95 billion at September 30, 2026. Fixed-maturity securities were $26.00 billion, or 76.6% of net invested assets, with an average rating of AA- and an average duration of 3.3 years including cash and the arbitrage trading account. Common stockholders’ equity was $9.61 billion, and book value per share was $25.87.

During the three months ended September 30, 2026, the company repurchased 309,508 shares for $21.1 million. Year-to-date capital returned was $728.6 million, including $435.1 million of share repurchases. Berkley said the company preserved flexibility to support future opportunities.

The company said it believes it remains well-positioned to continue delivering attractive long-term risk-adjusted returns.