W.R. Berkley’s 2016 fourth quarter was a productive one despite higher catastrophe losses, with soaring investment income and a steady increase in premiums.

The insurer reported nearly $153 million in net income, or $1.20 per diluted share, up from $109.7 million, or $0.85 per diluted share over the same period a year ago.

W.R. Berkley’s reinsurance combined ratio hit 103.4 for the quarter, a worsening result compared to 96.5 in the 2015 fourth quarter. Berkley noted that its underwriting results were impacted by “above average catastrophe activity including Hurricane Matthew and the Tennessee wildfires. But the related losses were within the company’s expectations.

The insurance combined ratio, on the other hand, was a much healthier 93.9, compared to 92.7 a year ago.

As far as W.R. Berkley’s consolidated results, net premiums written nearly hit $1.51 billion, versus $1.499 billion in the 2015 fourth quarter. Net premiums earned were $1.6 billion, up from $1.54 billion over the same period last year.

Investment income came in at $159.3 million, compared to $127.6 million in the 2015 fourth quarter. That’s a gain of 24.8 percent. Net realized investment gains surpassed $77.6 million in Q4, compared to $12.6 million over the same period last year.

Berkley cited a number of highlights during Q4, including the launch of Berkley Cyber Risk Solutions and Berkley Transactional.

Here are highlights of Berkley’s consolidated 2016 annual results:

  • Gross premiums written came in above $7.2 billion, compared to just under $6.2 billion in 2015.
  • Net premiums written were $6.4 billion, up from $6.19 billion in 2015.
  • Net income was just under $602 billion, or $4.68 per share, up from $503.7 billion, or $3.87 per share over the same period last year.
  • The consolidated combined ratio was 94.3 in 2016, compared to 93.7 in 2015.

 

Source: W.R. Berkley Corp.