W. R. Berkley Corporation has reported that Q3 underwriting income and net income grew 34.7% and 45.7% to $258.7 million and $333.6 million, respectively, while net investment income in the quarter stood at $270.9 million, driven by a 59.3% increase in the core portfolio.
The firm also disclosed a Q3 operating return on equity and return on equity of 21.7% and 19.8%, respectively.
The current accident year combined ratio before catastrophe losses of 2.3 loss ratio points was 87.9%, while the reported combined ratio was 90.2%, including current accident year catastrophe losses of $61.5 million.
Boasting another record, W. R. Berkley said its net premiums written grew 10.5% to $2.8 billion.
Meanwhile, total capital returned to shareholders was $160.3 million, consisting of $129.0 million of special dividends, $28.4 million of regular dividends, and $2.9 million of share repurchases.
W. R. Berkley said in a statement, “Strong underwriting profits and record quarterly net investment income drove the Company’s exceptional annualized operating return on equity of 21.7% in the third quarter of 2023.
“Net premiums written grew 10.5% in the quarter. Market segments, territories and lines of business continue to move independently of one another. Accordingly, we are expanding in areas that are likely to provide attractive risk-adjusted profitability. Overall rate increases excluding workers’ compensation remained strong at 8.5%.”
The firm continued, “The higher interest rate environment contributed to a meaningful year-over-year increase in investment income. We anticipate this trend will continue as we benefit from record operating cash flows and reinvest at higher interest rates.
“Simultaneously, the short duration and high quality of our fixed-maturity portfolio have enabled us to grow book value even as interest rates have risen.
“Our focus on total risk-adjusted return, decentralized operations, and entrepreneurial culture, coupled with effective capital management, has enabled us to continue to create value for our shareholders. We remain well positioned for continued success and very optimistic about the remainder of 2023 and the foreseeable future.”
