Reinsurance News

W.R. Berkley posts record underwriting income

26th April 2022 - Author: Matt Sheehan

Re/insurance holding company W. R. Berkley Corporation has posted record underwriting income of $274.4 million for the first quarter of the year.

BerkleyThe company’s net income similarly more than doubled from $229.5 million to $590.6 million, while operating income moved from $201.8 million to $306.9 million.

During Q1, net premiums written also grew by nearly 18% as the majority of W.R. Berkley’s businesses expanded, particularly in the E&S and specialty markets.

The firm said that rate increases remained above expected loss cost trends for the majority of its lines of business, while rate and exposure growth helped to improve itsloss and expense ratios.

The result was a combined ratio of  87.8%, including catastrophe losses of $28.8 million, or 1.3 loss ratio points.

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Additionally, W.R Berkley reported record quarterly net investment gain of $366.3 million, more than $300 million of which came from a pretax gain on the sale of a real estate investment in London.

Compared with the same period in 2021, investment income grew more than 9% as investment funds continued to outperform and fixed-maturity income benefited from higher yields, a trend that W.R. Berkley expects to accelerate as interest rates move higher.

“The Company reported exceptional results for the first quarter of 2022, due to another quarter of record underwriting results and continued strong investment income, including significant realized gains from the sale of investments,” W.R. Berkley stated alongside its results.

“We remain focused on our total risk-adjusted return strategy and expect relative market stability in most parts of our business,” it continued.

“Our underwriting and investment portfolios remain well-positioned for the inflationary environment. The Company is performing exceptionally well and we continue to be optimistic about our opportunities going forward.

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