Greenwich, CT – W. R. Berkley Corporation (NYSE: WRB) recently reported its third quarter 2023 results.
Third quarter highlights included:
- Operating return on equity and return on equity of 21.7% and 19.8%, respectively.
- Record net investment income of $270.9 million driven by 59.3% increase in the core portfolio.
- The current accident year combined ratio before catastrophe losses of 2.3 loss ratio points was 87.9%.
- The reported combined ratio was 90.2%, including current accident year catastrophe losses of $61.5 million.
- Record net premiums written grew 10.5% to $2.8 billion.
- Underwriting income and net income grew 34.7% and 45.7% to $258.7 million and $333.6 million, respectively.
- Average rate increases excluding workers’ compensation were approximately 8.5%.
- Total capital returned to shareholders was $160.3 million, consisting of $129.0 million of special dividends, $28.4 million of regular dividends, and $2.9 million of share repurchases.
The Company commented:
Strong underwriting profits and record quarterly net investment income drove the Company’s exceptional annualized operating return on equity of 21.7% in the third quarter of 2023.
Net premiums written grew 10.5% in the quarter. Market segments, territories and lines of business continue to move independently of one another. Accordingly, we are expanding in areas that are likely to provide attractive risk-adjusted profitability. Overall rate increases excluding workers’ compensation remained strong at 8.5%.
The higher interest rate environment contributed to a meaningful year-over-year increase in investment income. We anticipate this trend will continue as we benefit from record operating cash flows and reinvest at higher interest rates. Simultaneously, the short duration and high quality of our fixed-maturity portfolio have enabled us to grow book value even as interest rates have risen.
Our focus on total risk-adjusted return, decentralized operations, and entrepreneurial culture, coupled with effective capital management, has enabled us to continue to create value for our shareholders. We remain well positioned for continued success and very optimistic about the remainder of 2023 and the foreseeable future.
The complete results release is available here: W. R. Berkley Corporation Reports Third Quarter Results
Source: WR Berkley