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Mar 31, 2021
W. R. Berkley Q1 2021 Earnings Report
W. R. Berkley Corporation reported a strong first quarter with premium growth and a solid combined ratio, leading to a 14.5% return on equity.
Key Takeaways
W. R. Berkley Corporation reported a strong first quarter with gross premiums written growing by 11.4% and a return on equity of 14.5%. The company's combined ratio was 90.1%, and operating income was $201.8 million.
Return on equity of 14.5%.
Gross and net premiums written increased 11.4% and 11.1%, respectively.
The reported combined ratio was 90.1%. The accident year combined ratio before catastrophe losses was 88.4%.
Record quarterly underwriting income of $182.6 million.
W. R. Berkley
W. R. Berkley
Forward Guidance
The Company anticipates that rate increases will continue for the foreseeable future, driven by social inflation and above-average industry catastrophe losses. They expect their combined ratio to improve as rate increases exceed loss cost trends, and their total return investment strategy will continue to generate attractive returns for shareholders.
Positive Outlook
- Rate increases are expected to continue.
- Combined ratio is expected to improve.
- Total return investment strategy is expected to generate attractive returns.
- Decentralized model allows quick emphasis on market sectors with best risk-adjusted returns.
- The company expects to greatly benefit from the current opportunity, which should lead to exceptional results.
Challenges Ahead
- Persistent social inflation.
- Above-average industry catastrophe losses.
- Defensive position in fixed-maturity securities due to rising interest rates.
- Potential risks associated with transitioning markets.
- Uncertainties related to economic expansion.