W.R. Berkley Corp. sold off one of its real estate investments – a New York City office complex – at the end of 2020. The sale generated a $105 million pre-tax net gain, according to the commercial lines specialty insurer and reinsurer.
Berkley said the transaction would be counted in the 2020 fourth quarter, along with an approximately $52 million pre-tax increase in stockholders equity as a result of the accounting treatment required by the transaction’s structure.
With the COVID-19 pandemic, insurers and other corporations have actively explored reducing their corporate footprint. That’s not the case here. A spokesperson clarified the complex was an investment property only.
Berkley explained in the sale announcement that the sale is part of its “long-term strategy of investing for total return” so it can generate “superior long-term value” for shareholders even with the current low interest rate environment.
The company is scheduled to disclose its 2020 fourth quarter earnings on Jan. 26.
Source: W.R. Berkley