W.R. Berkley Posts $101M Q3 Profit

Commercial lines insurer W.R. Berkley Corp. reported $100.95 million net profit for its third quarter, up 32.1 percent from $76.41 million reported during the same period one year ago.

The Greenwich, Conn.-based insurer said on Oct. 22 that its results benefited from “significant rate increases” and positive trends in most lines of business. W.R. Berkley — one of the largest commercial lines writers in the country — said average rates on renewed policies increased 7.0 percent in the third quarter.

The earnings also got a boost from smaller catastrophe losses. The net premiums written for the quarter were $1.276 billion, up 13.3 percent compared to one year ago.

The GAAP combined ratio came in at 95.8 percent, improving from 99.3 percent one year ago. Losses from catastrophes were $8.75 million, down from the $51.15 million losses posted one year ago. Net investment income was $116 million, improving 1.7 percent from $114 million a year ago.

In his commentary, CEO William R. Berkley provided a bullish view on the rates momentum. “It is clear, as we enter the second year of significant rate increases, that the cyclical change is no longer hypothetical,” he said.

He said the consequence of declining fixed income yields has heightened the need for meaningful improvement in underwriting margin.

“We anticipate continued price increases over the next 12 months,” said Berkley.