Re/insurance holding company W. R. Berkley Corporation has reported a nearly twofold increase in net income over 2021, which totaled $1.02 billion for the year, compared with $530.7 million in 2020.
Operating income for the year similarly more than double from $438.3 million to $951.9 million.
For the Q4 period, net income was actually slightly down on the 2020 figure, at $294.4 million, compared with $312.2 million previously, but operating income still increased from $173.0 to $284.3 million.
W. R. Berkley also reported record underwriting income of $260.9 million for the quarter and $845.3 million for the year, alongside net premium growth of 26.6% and 22.0% for the respective periods.
The reported combined ratio for Q4 was 88.2%, including catastrophe losses of $48.5 million, up slightly from $42.4 million for the same period last year. Cat losses for the full-year were $202.0 million, versus $339.8 million in 2020.
Investment income shrank from $181.0 million to $165.0 million for the quarter but increased from $583.8 million to $671.6 million for the year.
“The Company had another outstanding quarter, which together with strong performance in the first nine months of 2021, led to a record year on many fronts, despite catastrophe losses and continuing low interest rates. The fourth quarter was highlighted by more than 26% growth in net premiums written and an 18.7% annualized return on equity,” W. R. Berkley said in commentary.
Robust premium growth was driven by continued strong rate increases in nearly all lines of business combined with higher exposure growth. Record underwriting income in the quarter reflected year-over-year margin improvement and a further reduction in the expense ratio,” it continued.
“We anticipate that the factors fueling the Company’s growth should remain in place for the foreseeable future and that compounding rate increases in excess of loss trend will further contribute to underwriting profits as premiums are fully earned.”
“Our underwriting and investment portfolios are well-positioned for the anticipated inflationary environment. The Company is performing exceptionally well and we look forward to another great year in 2022.
