Greenwich, CT – W. R. Berkley Corporation (NYSE: WRB) recently reported its third quarter 2022 results.
Third quarter highlights included:
- Operating return on equity of 16.9%.
- Average rate increases excluding workers’ compensation were approximately 7.3%.
- Pre-tax underwriting income of $192.1 million.
- The current accident year combined ratio before catastrophe losses of 3.9 loss ratio points was 86.6%.
- The reported combined ratio was 92.1%, including catastrophe losses of $94.1 million.
- Net investment income for the core portfolio grew 51.0%, driving record quarterly net investment income.
- Operating income increased 14.2% to $281.8 million.
- Record gross premiums written grew 10.6% to $3.1 billion and net premiums written grew 10.8% to $2.6 billion.
The Company commented:
Results for the third quarter of 2022 were excellent, with strong underwriting performance and net investment income driving a 16.9% annualized operating return on beginning stockholders’ equity. Net premiums written grew 10.8%. The short duration and high quality of our fixed-maturity securities tempered the market value impact on the Company’s book value and allowed us to quickly invest more funds at higher interest rates and grow core net investment income by 51%.
Growth in net premiums written reflected the continuation of favorable market conditions for many of our products. After several years of compounding rate, the majority of our businesses are achieving or exceeding our target return on equity. As a result, we continue to expand our business, while maintaining our focus on rate adequacy in this inflationary environment.
We manage the business for lower relative volatility, which was again demonstrated in our results during another quarter of significant industry-wide catastrophe losses. We continue to evaluate the changing market conditions and the opportunities available to deploy capital where we believe adequate risk-adjusted returns can be achieved.
The uncertainties and challenges of today’s environment provide many opportunities. Our knowledge, expertise and experience allow us to navigate the risks and embrace opportunities in our underwriting and investing activities. The Company continues to perform exceptionally well, delivering superior long-term risk-adjusted returns and creating value for shareholders. We remain optimistic about the future.
The complete results release is available here: WR Berkley Corporation Third Quarter 2022 Results
Source: WR Berkley