W R Berkley profit rises on boost from investments, underwriting

W. R. Berkley

22/07/2024 21:58

July 22 (Reuters) - W R Berkley  WRB.N  reported a rise
of about 4% in second-quarter profit on Monday, helped by robust
returns on the commercial insurer's investment portfolio and
strong underwriting.
    Elevated interest rates have boosted the payouts on bonds,
which make up a major chunk of investments at insurers, while an
equity rally fueled by hopes of a soft landing for the economy
has also lifted gains from their stock portfolios.    
    The company's net investment income rose 51.8% to a
quarterly record of $372.1 million. 
    Net premiums written also grew 11.2% to a quarterly record
of $3.13 billion, bolstered by higher demand as economic
resilience encourages businesses to spend money on insurance
policies.
    Last week, industry bellwether Travelers  TRV.N  also
reported better-than-expected quarterly profit.
    Greenwich, Connecticut-based W R Berkley'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.
    Its profit was $371.9 million, or 92 cents per share, for
the three months ended June 30, compared with $356.3 million, or
87 cents per share, last year.
    The company reported a combined ratio of 91.1%, compared
with 89.6% a year earlier. A ratio below 100% shows that an
insurer earned more in premiums than it paid out in claims.
    Shares rose 1.9% after the closing bell. As of Monday's
close, they had risen 10.6% so far this year.

 (Reporting by Niket Nishant and Arasu Kannagi Basil in
Bengaluru; Editing by Devika Syamnath)
 ((Niket.Nishant@thomsonreuters.com;))