W.R. Berkley Corp reported a nearly 24 percent increase in net premiums written during the 2021 third quarter. As well, average rate increases surpassed 10 percent for nearly every line except workers compensation.
The Connecticut-based specialty insurer and reinsurer generated nearly $261.3 million in net income through the quarter, or $1.40 per diluted share. That compares to almost $151.7 million a year ago, or $0.81 per diluted share.
W.R. Berkley said that “robust” rate increases should continue “for the foreseeable future. Additionally, the strong commercial property/casualty pricing environment should create more opportunities “to write business at attractive underwriting margins,” the company said. Another continued growth driver: the greater focus distribution partners and clients are placing on stable markets such as specialty and E&S lines that have “balance sheet strength and expertise.”
Q3 result highlights:
- Consolidated gross premiums written reached above $2.8 billion, compared to $2.26 billion in the same, year-ago quarter.
- Consolidated net premiums written surpassed $2.3 billion during the quarter, compared to just under $1.9 billion in the 2020 third quarter
- Consolidated net investment income came in above $179.8 million, versus ore than $142.6 million in Q3 2020.
- Broken down further, Berkley’s insurance arm produced more than $2.4 billion in gross premiums written, versus just under $2 billion the previous year. It generated $2 billion in net premiums written, compared to $1.6 billion in Q3 2020.
- W.R. Berkley’s insurance combined ratio was 89.3, better than the still-good 94.1 produced last year. Its reinsurance combed ratio hit 98.4, a decline from 90.3 a year ago.
- Berkley’s reinsurance gross premiums written hit $340.7 million, up from $280.7 million in Q3 2020. Reinsurance net premiums written came in at $317.9 million, compared to $251 million last year.
Sources: W.R. Berkley Corp.