W.R. Berkley Corp. almost doubled its net income for the second quarter, to $356.3 million.
This was a 98.7% increase from the $179.3 million reported for 2022’s second quarter.
The Greenwich, Connecticut-based insurer posted an 8.7% increase in premiums written, to $2.81 billion.
The combined ratio for the quarter worsened to 89.6% from 88.6%.
The current accident year losses from catastrophes, including COVID-19-related losses, decreased 7.5%, to $53.5 million. This compares with the 66% increase reported in first-quarter results.
It was “a very solid quarter,” President and CEO Rob Berkley said during the quarterly analysts earnings call.
Discussing individual lines, he said public company directors and officers liability insurance is “clearly a place where one needs to pause and tread carefully.”
“There’s nothing that we’re seeing now that would suggest it’s bottoming out, let alone pivoting,” he said.
Liability lines in the auto space, especially commercial auto, is challenging, he said. “The plaintiffs bar is very aggressive,” he said.
Property, he said, has “come into focus” in terms of what needs to happen with respect to catastrophe-exposed risks, he said, in reference to higher rates, and this seems to be spilling over into non-cat accounts.
Workers comp has returned to more traditional norms in terms of frequency, Mr. Berkley said. But medical inflation is a concern, with medical costs accounting for slightly more than half of every dollar associated with the sector.
“It’s our expectation that you’re going to see more medical inflation coming through to all players, including the workers comp space,” he said.
Discussing cyber, Mr. Berkley said the company has not been a major factor in the market. “We’re careful and selective and we’re conscious of how to manage the systemic exposure that comes along with that product line.
“But clearly, cyber has become a more competitive market. We have a view as to what an adequate rate is and appropriate terms and conditions and we will draw the line in the sand” and stay on the right side of it.
Mr. Berkley said the flow into the excess and surplus lines space from the standard markets “remains robust and we’re encouraged” as to what the balance of the year and beyond is likely to hold.
