W. R. Berkley Corporation has released its Q2 results, reporting that net income doubled to $356.3 million compared to the same quarter last year, with a return on equity and operating return on equity of 21.1% and 18.4%, respectively.
The firm has also boasted “record” gross and net premiums written, which grew 9.3% and 8.7% to $3.3 billion and $2.8 billion, respectively.
Gross premiums written for the first six months of 2023 now stand at $6.4 billion, up from $5.9 billion compared to the same period last year.
Elsewhere, net income for the first six months of 2023 was down at $650.4 million, while operating income in Q2 also dropped slightly to $311 million from $313 million.
However, W. R. Berkley disclosed a “record” net investment income of $245.2 million, which it says was driven by a core portfolio increase of 71.6%.
Average rate increases excluding workers’ compensation were approximately 8.2%.
The current accident year combined ratio before catastrophe losses of 2.1 loss ratio points was 87.6%.
W. R. Berkley’s reported combined ratio was 89.6%, including current accident year catastrophe losses of $53.5 million.
Total capital returned to shareholders was $320.8 million, consisting of $292.5 million of share repurchases and $28.3 million of regular dividends.
In a written statement, W. R. Berkley said, “The Company reported excellent results for the second quarter of 2023, with an annualized return on equity of 21.1%.
“As anticipated, growth in premiums written accelerated compared to the first quarter of 2023, setting premium on pace for another record year. We continue to selectively expand in areas that we anticipate will meet or exceed our targeted risk-adjusted return, as distinct market segments and lines of business move independently.
“We maintained our rate momentum and reported a strong combined ratio, though the industry experienced another quarter of elevated natural catastrophe losses.”
The firm continued, “Net investment income grew 42.9% during the quarter as an increasingly greater portion of our fixed-maturity portfolio was (re)invested at higher interest rates.
“The short duration and high quality of our fixed-maturity portfolio has enabled us to simultaneously benefit from improved yields and grow book value as interest rates have risen. In addition, during the quarter, our investment results continued to benefit from our total return approach.
“The Company’s focus on risk-adjusted return in all aspects of our business continues to generate superior results for our shareholders.
“Having a decentralized model allows us to navigate risks and embrace opportunities in a wide range of economic and operating environments.
“We have positive momentum as we head into the second half of the year and are very optimistic about the remainder of 2023 and beyond.”
