W.R. Berkley Corp. reported net premium growth exceeding 27 percent and a combined ratio under 90 for the 2021 second quarter, positive results the commercial lines insurer and reinsurer attributed to rate adequacy and an improving economy.
Consolidated net premiums written during Q2 surpassed $2.2 billion, up from $1.7 billion in the 2020 second quarter. As well, the company booked net income of more than $237 million in Q2, or $1.27 per diluted share, versus $71.2 million, or $0.38 per diluted share a year ago.
Additionally, net investment income jumped nearly 97 percent to $169.2 million during the quarter.
W.R. Berkley’s consolidated combined ratio was 89.7 during the quarter, compared to 98.7 a year ago.
W.R. Berkley even produced gains for workers compensation, which produced average rate increases of just under 10 percent.
The company said that its rate increases continue to outpace loss costs, with new products also helping to achieve or exceed its targeted rate levels. During the quarter, W.R. Berkley focused on exposure growth and business expansion, and it said the strategy should help lead to additional underwriting profits down the line.
Here are additional Q2 result highlights:
- Insurance net premiums written landed just under $2 billion, versus more than $1.5 billion in the 2020 second quarter. The insurance combined ratio was 89.9 in Q2, compared to 97.7 a year ago.
- Insurance net premiums earned were more than $1.7 billion, up from more than $1.4 billion in the 2020 second quarter.
- Reinsurance and monoline excess net premiums written came in just under $239.4 million, compared to $214.5 million in the 2020 second quarter. The reinsurance combined ratio was 88.6, vastly improved from 105.1 in the 2020 second quarter.
- Reinsurance net premiums earned surpassed $244.4 million, compared to nearly $211.9 million last year.
- Current accident year insurance losses from catastrophes, including COVID-related losses, landed at $36.8 billion during the quarter, improved from $114 million in the 2020 second quarter. Reinsurance and monoline excess losses were just under $7.2 million, compared to $31.8 million a year ago.
Workers compensation, commercial auto, and casualty reinsurance all saw large premium increases. Professional liability was among the largest gainers, jumping to $287 million in net premiums written during Q2, versus $174.2 million the year before.
Source: W.R. Berkley