Storm Losses Erode W.R. Berkley Net Income in Q2

Insurance holding company W. R. Berkley Corp. reported net income for the second quarter of $80 million, compared to $191 million for the second quarter of 2007.

Second quarter results showed the combined ratio was 93.2% and the paid loss ratio was 52.8%. For the first six months, the combined ratio is 86.3%; last year for the same period it was 83.1%.

For the second quarters of 2008 and 2007, weather-related losses for the regional segment were $31 million and $16 million, respectively. For the first six months of 2008 and 2007, weather-related losses for the regional segment were $45 million and $22 million, respectively.

Gross written premiums totaled $1.11 billion for the second quarter compared to $1.26 billion for the second quarter last year. Through six months, premiums written were $2.39 billion; last year after six months the company had written $2.64 billion.

Commenting on the company’s activities, William R. Berkley, chairman and chief executive officer, said the company’s “underwriting margins were compressed as a consequence of the more competitive environment and the impact of storm losses which were $15 million more than the prior year period.”

The company will hold its quarterly conference call on Thursday, July 24, 2008 at 8:30 a.m. eastern time. The conference call will be webcast live on the company’s website at www.wrberkley.com.

Source: W.R. Berkley
www.wrberkley.com

Topics Profit Loss Windstorm