Insurance holding firm W. R. Berkley recorded an all-time record net income of $312.2 million in the fourth quarter of 2020, driven by a 9% growth in gross premiums written.
Net investment income grew 32%, despite a defensive position in fixed-maturity securities, where the company maintains a relatively short duration and a high level of liquidity.
The reported combined ratio for the quarter hit a 13 year low of 90.9%.
The accident year combined ratio before catastrophe losses was 88.8%.
Meanwhile, underwriting income increased 44.2% to $165.4 million.
Catastrophes added 2.3 loss ratio points to the reported combined ratio, including 1.5 loss ratio points for COVID-19 related losses.
“Our rate increases continued to accelerate throughout the year in connection with our efforts to stay ahead of current and expected loss trends,” the company said in an accompanying statement.
“The global pandemic, frequent catastrophe losses, social inflation and low interest rates continue to reinforce the industry’s need for disciplined underwriting and additional rate.
“The Company again delivered a superior risk-adjusted return, in a challenging environment. We see no signs of rate increases moderating and expect that 2021 will provide opportunities for margin improvement.”
