Attacks Cause W.R. Berkley to Post 3Q Loss, Will Discontinue Some Lines

October 26, 2001

W.R. Berkley Corp. announced that the effects of after tax losses of $23 million related to the attacks of Sept. 11 had caused it to post a net loss for the 3rd quarter of $47.2 million. The Greenwich Conn.-based company also announced that it was withdrawing from two lines of business.

Berkley’s gross pre-tax loss from Sept. 11 is around $35 million after reinsurance recoveries, and although it reported that operating income for the first nine months rose to $38 million, compared with $25 million in 2000, it still posted a net loss for the period of $27 million. While net investment income was down, Berkley reported a healthy 31 percent increase in net premiums written during the 3rd quarter to $418 million.

The company also announced that it plans to withdraw “from the personal lines business, both homeowners and private passenger automobile.” It will stop writing new policies immediately, and will not renew existing policies, subject to regulatory requirements. It also said that it was “discontinuing the alternative market division of its reinsurance business.” After tax- loss related to the discontinued businesses was around $40 million, said the announcement.

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