Berkley profit jumps 45.7% in Q3
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W.R. Berkley Corp. reported a 45.7% increase in net income for the third quarter on Monday, to $333.6 million.
The Greenwich, Connecticut-based insurer posted a 10.5% increase in premiums written, to $2.85 billion.
The combined ratio for the quarter improved to 90.2% from 92.1%.
The current accident year losses from catastrophes, including COVID-19-related losses, decreased 34.7%, to $61.5 million. This compares with a 7.5% decrease in the second quarter.
“Our underwriting results of a combined (ratio) of 90 during a period that had meaningful cat activity is really exceptional,” President and CEO Rob Berkley said during the quarterly analysts earning call.
Discussing workers comp, Mr. Berkley said, “One needs to be very mindful of medical cost trends. We went through a period of time where it was pretty benign. We think that is shifting very quickly,” and will increasingly become the focus “for a broader audience over the coming quarters.”
In addition, the benefits related to COVID and frequency that were followed by a tight labor market “have run their course” while wage inflation is slowing.
Discussing cyber, Mr. Berkley said, “It is going to be interesting to see what type of pressure the reinsurance marketplace brings to bear.”
Directors and officers liability insurance “continues to be very, very competitive,” while other segments of the professional liability insurance market are, to varying degrees, “pretty challenging.” A profit can still be made from the business, but there is a need to be careful, he said.
