W. R. Berkley Corporation is reporting net income for the second quarter of 2006 of $165 million, or 82 cents per share, a 23% increase from $134 million, or 67 cents per share, for the second quarter of 2005.
Net operating income for the second quarter of 2006 increased 27% to $166 million, or 82 cents per share, compared with $130 million, or 65 cents per share, for the corresponding quarter of 2005.
The company will host a live webcast to discuss its earnings on Wednesday, July 26, 2006 at 9:30 a.m. Eastern time.
Second quarter highlights included:
— Return on equity was 25.8% on an annualized basis.
— GAAP combined ratio was 88.9%.
— Net investment income grew 55% to $145 million.
— Net premiums written increased 7% to $1.2 billion.
— Paid loss ratio was 38.0%.
Commenting on the company’s activities, William R. Berkley, chairman and chief executive officer, said the company is on a good track and being patient about new ventures.
“Our business continues to perform extremely well with overall pricing levels down slightly but still adequate to allow for substantial underwriting profits. In spite of typical second quarter storm activity in our regional segment, we were able to deliver a return to shareholders in excess of 25%. While we expect results to vary within each segment, we continue to be confident that we will be able to deliver returns in excess of 20% at least through 2007,” he said.
“While we see new opportunities, they generally do not offer rational risk-adjusted returns — naive capital continues to abound. We expect to receive more significant contributions from our new ventures in the second half of the year, and we remain enthusiastic about our ability to deliver outstanding returns,” Berkley concluded.
The conference call will be webcast live on the company’s website at www.wrberkley.com. A recording of the call will be available on the company’s website approximately two hours after the end of the conference call.
Source: W. R. Berkley Corporation
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