Berkley Q4 profit rises on stronger underwriting, investment returns

(Reuters) — W.R. Berkley on Wednesday reported a rise in fourth-quarter profit, helped by higher premiums and a surge in investment income.

Heightened expectations of a soft landing have boosted sentiment among businesses and reduced uncertainty, encouraging them to ramp up their spending on insurance policies.

Berkley operates two segments — insurance and reinsurance & monoline excess. The insurance unit primarily caters to commercial clients and is the bigger business. Reinsurance & monoline excess provides insurance to other insurers to help them manage their risk.

Berkley’s net premiums written grew 12% from the year-earlier period to $2.72 billion. Net investment income surged 35.5% to hit a quarterly record of $313.3 million, driven by a 52.9% increase in its core portfolio.

Fourth-quarter net income to common stockholders rose to $397.34 million, or $1.47 per share, from $382.22 million, or $1.37 per share.

Shares of the company were broadly flat after the results were released. The stock fell marginally last year.