W.R. Berkley 3Q Profit Up 27%
NU Online News Service, Oct. 27, 1:58 p.m. EDT?W. R. Berkley Corporation reported third-quarter net income of $97 million, a 27 percent increase from $76 million during the year-ago period, as the premium growth and higher investment income compensated for hurricane losses.[@@]
The Greenwich, Conn.-based company said its pre-tax losses attributable to Hurricanes Charley, Frances, Ivan and Jeanne were $32 million. But making up for these losses were higher net premiums written of $1.059 billion, an increase of 13 percent compared $939 million during the third quarter of 2003.
The underwriting profitability and quarterly combined ratio were almost unchanged even including the hurricane losses?91.9 percent compared with 91.7 percent during the year-ago period.
Investment income for the third quarter also improved, up 39 percent to $72 million compared to the year-ago period. Total expenses for W. R. Berkley for the third quarter?losses and loss expenses and other operating costs?were around $1 billion, up from $808 million one year ago.
"The company achieved record third-quarter operating results in spite of the unusually high level of storms and resulting decline in the industry's profitability," said W. R. Berkley Chairman and Chief Executive William Berkley. "Prices are generally increasing at a level above loss cost inflation, and in most areas of the business our returns continue to be comfortably above our targets."
Mr. Berkley acknowledged that the company's ability to increase prices is "becoming a greater challenge." But, he added, "We expect to continue to deliver outstanding returns for the foreseeable future."
W. R. Berkley Corporation is an insurance holding company that operates in five segments of the property-casualty insurance business: specialty insurance, regional property casualty insurance, alternative markets, reinsurance and international.
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