W.R. Berkley’s Reinsurance Results Falter

W.R. Berkley Corp. ended 2018 with a decline in net income and worsening reinsurance combined ratio due to higher catastrophe loss expenses. At the same time, insurance premiums and investment income grew.

The Connecticut-based insurer and reinsurer booked more than $132.3 million in net income during the 2018 fourth quarter, down from $154.6 million in the 2017 fourth quarter.

Catastrophe losses reached $45.5 million in Q4 2018, up from $17.7 million over the same period last year. The overall combined ratio for Q4 2018 was 95.9 compared to 94.9 a year ago. While Berkley’s insurance arm did well, its reinsurance division struggled.

Consolidated gross premiums written surpassed $1.8 billion for the quarter, up from $1.78 billion over the same period a year ago. Net premiums written were $1.5 billion compared to nearly $1.48 billion in Q4 2017.

Net investment income surpassed $159.8 million, up from $149.2 million over the same year-ago period.

Here are result highlights for the quarter and year, by segment:

Source: W.R. Berkley