Rate increases are a big factor behind W.R. Berkley Corp.’s mostly stellar Q2, with the insurer and reinsurer reporting a robust jump in net income, net investment income and premiums written.

Another good result: W.R. Berkley’s insurance combined ratio dipped a bit. On the other hand, its reinsurance/monoline combined ratio rose by a few points.

Net income for the 2019 second quarter hit $217 million, or $1.12 per share, compared to $180 million or $0.93 per share in the 2018 second quarter. Gross premiums written landed at $2 billion for the quarter, compared to more than $1.9 billion the year before. Net premiums written grew by 7.3 percent during the quarter, surpassing $1.7 billion, versus $1.6 billion in the 2018 second quarter.

Among other gains, W.R. Berkley said its net investment income jumped 22.5 percent, and average rate increases excluding workers compensation were more than 5 percent.

W.R. Berkley said that its insurance combined ratio was 93.8, down from 95.3 in the same, year-ago period. Its reinsurance/monoline combined ratio hit 95.2, up from 91.4 a year ago.

Net investment income surpassed $188.3 million, compared to nearly $154 million in Q2 2018.

Other results, broken down further:

  • Insurance net premiums written reached $1.6 billion in the 2019 second quarter, compared to $1.5 billion in the 2018 second quarter.
  • Reinsurance net premiums written reached $168.9 million during the quarter, compared to $132.7 million in the 2018 second quarter.
  • Workers compensation net premiums written hit $340.4 million in Q1 2019, down from $355 million in the 2018 second quarter.
  • Commercial auto net premiums reached $198.7 million during the quarter, up from $185.8 millino a year ago.

Source: W.R. Berkley Corp.