Property and casualty re/insurer W. R. Berkley Corporation has reported a Q4 2023 combined ratio of 88.4%, including current accident year catastrophe losses of $32 million, as the company’s pre-tax underwriting income grew more than 8% to a record $315.9 million.
The firm achieved a record-setting year in 2023, achieving a 23.6% annualized return on beginning equity in Q4 2023.
Gross premiums written (GPW) rose from $2.9 billion in Q4 2022 to more than $3.2 billion in Q4 2023, while net premiums written (NPW) jumped 12% year-on-year to $2.7 billion.
The firm attributes the growth to the deployment of capital in areas of the business that it expects to achieve or exceed its targeted risk-adjusted return on equity.
W. R. Berkley also saw record net investment income of $313.3 million in Q4 2023, driven by 52.9% increase in the core portfolio.
Net income for the quarter reached $397.3 million, so up slightly on the $382.2 million seen a year earlier, as operating income increased from $323.3 million to $391.7 million.
The full-year 2023 results reported by the company show an increase in gross and net premiums written of 8.9% and 9.5% to records of $13 billion and $11 billion, respectively.
Record annual pre-tax underwriting income totalled $1.1 billion.
On the asset side of the balance sheet, net investment income grew 35.1% to a record $1.1 billion in 2023, and operating cash flow increased 14% to a record $2.9 billion.
“Our Company performed exceptionally well during 2023, and we anticipate 2024 will continue to be rewarding for our shareholders. We view the current property and casualty insurance and investment environments as favorable to our business model. We are confident that we will continue to deliver superior long-term risk-adjusted returns and increase value to shareholders in 2024 and beyond,” said the company.
