Earnings
W.R. Berkley profit falls 13% even as underwriting holds steady
The specialty insurer's net income dropped to $446 million, though operating earnings per share rose and the combined ratio stayed near 91%.
HedgeWeekly News Desk ·
W.R. Berkley said on Monday that third-quarter net income to common shareholders fell to $446.0 million, or $1.14 per diluted share, from $511.0 million, or $1.28, a year earlier. Shares slipped about 2.4% in after-hours trading.
The underlying business looked firmer than the headline. Operating income rose to $1.17 per share from $1.10, and the consolidated combined ratio was 90.8%, little changed from 90.9%. Excluding catastrophes, the current accident-year combined ratio was 88.1%. Catastrophe losses rose to $85.9 million from $78.5 million.
Growth was modest. Consolidated net premiums written rose about 1% to $3.27 billion, with the insurance segment up 3.2%. Net investment income climbed to $383.5 million from $351.2 million. Annualised return on equity fell to 18.4% from 24.3%.
Book value per share was $25.87 at the end of September. The company bought back $21.1 million of stock in the quarter and has returned $728.6 million to shareholders so far this year.