Net premiums written increased 15 percent, or $142 million, going from $963 million to $1.11 billion. Total revenues in the quarter grew 19 percent, or $188 million, from $995 million to $1.2 billion. Net investment income grew 46 percent, or $26.1 million, from $56.2 million to $82.3 million.

William R. Berkley, chairman and chief executive officer for the Greenwich, Conn.-based insurer, said in a statement, "We continue to be optimistic about the environment and expect relative price stability in most parts of our marketplace."

He said the company finds, "There is pressure on prices in some areas, but the overall business continues to look excellent. We expect to continue to enjoy moderate growth and we are confident that 2005 will result in after-tax returns exceeding 20 percent."

Full-year net income for 2004 increased by 30 percent, or $101 million, from $337 million, or $3.87 a share in 2003, to more than $438 million, or $4.97 a share. Total revenues increased 24 percent, or $882 million, going from $3.6 billion to $4.5 billion.

Net premiums written for 2004 increased 16 percent, or $596 million, going from $3.7 billion in 2003 to $4.3 billion. Net investment income rose 39 percent, or more than $81 million, from $210 million to $291 million.

The combined ratio for 2004 improved by one point, dropping from 90.4 in 2003. For the quarter, the combined ratio dropped .6 percentage points from 90.5 to 89.9.

The company reported weather-related losses of $2 million in the fourth quarter of 2004, compared to $3 million for the same period in 2003. Full-year 2004 losses stood at $60 million compared to $38 million in 2003.

Of the four operating segments, all reported combined ratios under 100 for the year. However, in the fourth quarter, Berkley's International segment reported a 2.3 point erosion in combined ratio, going from 104.3 in 2003 to 106.6 percent. For the year, the segment reported a combined ratio of 97.2 compared to 96.7 percent in 2003.