Re/insurance holding company W.R. Berkley has announced the sale of one of its real estate investments – an office complex located in New York City.
The sale is expected to generate a realized pre-tax net gain of $105 million in the fourth quarter of 2020.
It will also result in a $52 million pre-tax increase in stockholders’ equity as a result of the accounting treatment required by the transaction’s structure, W.R. Berkley explained.
The company noted that the sale forms part of its long-term strategy of investing in the challenging low interest rate environment.
W.R. Berkley reported operating income of $121.1 million for the third-quarter of 2020 and a combined ratio of 93.7%, despite the impacts of catastrophe events in the period.
Regarding its investment portfolio, the company noted that it continues to actively manage market exposure by raising its allocation to high-quality short-term assets.
The firm intends to maintain this defensive position until the uncertainty in the financial markets and the economy starts to subside and the entry point is deemed more attractive.
