Insurance holding company W. R. Berkley Corporation generated record net premiums written (NPW) of more than $3.1 billion in the second quarter of 2024, as net investment income increased by almost 52% to a new record.
As NPW grew more than 11% year-on-year, the firm’s gross premium written (GPW) increased from $3.3 billion to $3.7 billion in Q2 2024, as the company took advantage of favourable market conditions in many areas of its business.
For H1 2024, GPW rose from $6.4 billion to $7.1 billion, and NPW increased from $5.4 billion to almost $6 billion.
The firm has disclosed a reported combined ratio of 91.1% for the quarter, and a current accident year combined ratio before catastrophe losses of 3.2 loss ratio points of 88%.
The company’s return on equity was 20% for Q2 2024, compared to 21.1% in the comparative quarter. The operating return on equity grew to 22.4% from 18.4% in Q2 2023.
Supporting the solid underwriting performance, W.R. Berkley generated record net investment income of $372.1 million.
All in all, the insurer has reported net income of $372 million for the second quarter of 2024, up from $356 million a year earlier, as operating income rose from $311 million to $418 million. For the first half of the year, net income rose from $650 million to $814 million, while operating income moved from $587 million to $841 million.
W. R. Berkley commented on the results, “Continued strong underwriting and investment income drove our 20.0% annualized return on beginning of year common stockholders’ equity in the second quarter. Market conditions remained favorable in many areas of our business, fueling growth in net premiums written of 11.2%. Our combined ratio was 91.1% inclusive of 3.2 loss ratio points of catastrophe losses.
“Net investment income increased 51.8% over the prior year second quarter, driven by an increase in fixed-maturity income from a growing portfolio with higher yields. We anticipate that the Company’s new money rate will remain higher than the current yield of our fixed-maturity securities for the foreseeable future. Coupled with our increasing investment portfolio from continuing record cash flow, we remain well-positioned for further investment income growth.
“Our decentralized structure and consistent focus on long-term risk-adjusted return allow us to effectively operate in a rapidly-changing environment. We continue to believe that expertise matters in both underwriting and investing. The Company expects to continue to deliver outstanding returns to our shareholders for the remainder of 2024 and beyond.”
