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Sep 30, 2021
W. R. Berkley Q3 2021 Earnings Report
W. R. Berkley Corporation reported an outstanding third quarter with a 72.3% increase in net income and a return on equity of 16.6%.
Key Takeaways
W. R. Berkley Corporation reported a strong third quarter, with a 72.3% increase in net income and a 16.6% return on equity. The company saw growth in net premiums written and underwriting income, driven by robust rate increases and a strong commercial property and casualty pricing environment. Investment income also grew, contributing to the company's overall positive performance.
Return on equity of 16.6%.
Net premiums written increased 23.7%.
The current accident year combined ratio before catastrophe losses of 3.5 loss ratio points was 86.9%.
The reported combined ratio was 90.4%, including catastrophe losses of $73.8 million.
W. R. Berkley
W. R. Berkley
W. R. Berkley Revenue by Segment
Revenue by Segment
Insurance Revenue
CapyFin.comReinsurance & Monoline Excess Revenue
CapyFin.com Forward Guidance
Overall rate increases remained robust in nearly all lines of business, and we expect this to continue for the foreseeable future. We see expanding opportunities to write business at attractive underwriting margins, given the strong commercial property and casualty pricing environment.
Positive Outlook
- Expanding opportunities to write business at attractive underwriting margins.
- Strong commercial property and casualty pricing environment.
- Increasing focus on stable markets with balance sheet strength and expertise.
- Expect that exposure growth and compounding rate achievement will contribute to additional underwriting profits.
- Investment funds delivered another strong performance.
Challenges Ahead
- Significant industry catastrophe losses.
- Low interest rates.
- Uncertainties related to emerging claim and coverage issues.
- Potential difficulties with technology and/or cyber security issues.
- Impact of climate change, which may alter the frequency and increase the severity of catastrophe events
Revenue & Expenses
Visualization of income flow from segment revenue to net income