Insurer W R Berkley's profit jumps on robust underwriting, investment returns

W. R. Berkley

23/04/2024 14:05

April 23 (Reuters) - Commercial insurer W R Berkley
 WRB.N  said on Tuesday its first-quarter profit rose 50% due to
strong returns from its investments and a stronger underwriting
performance. 
    Higher interest rates have boosted insurers' earnings on
their debt securities portfolio, while their returns from equity
investments have also surged as stock market rallies on hopes of
a soft landing.
    Greenwich, Connecticut-based W R Berkley's net investment
income jumped 43% to $319.8 million in the first quarter, and
net premiums written grew nearly 11%, as businesses revived
spending on insurance policies due to easing concerns of a
recession. 
    The 57-year-old company's insurance division caters to
commercial clients in the United States and other international
markets, while its Reinsurance & Monoline Excess unit provides
coverage to other insurers to help them manage their risk.
    First-quarter profit for W R Berkley's common stockholders
rose to $442.5 million, or $1.64 per share, compared with $294.1
million or $1.06 per share a year earlier.
    Shares of the company rose marginally before the bell. As of
Monday's close, they had risen 18% this year. 
    The company reported a combined ratio of 88.8% compared with
90.6% a year earlier. A ratio below 100% shows that an insurer
earned more in premiums than it paid out in claims.

 (Reporting by Niket Nishant in Bengaluru; Editing by Shinjini
Ganguli)
 ((Niket.Nishant@thomsonreuters.com;))