W. R. Berkley First-Quarter Profit Doubles

W. R. Berkley First-Quarter Profit Doubles

NU Online News Service, April 25, 3:55 p.m. EDT?W. R. Berkley Corporation reported today that first-quarter net profit grew more than 100 percent to $72 million, or $1.25 per share, with a strong improvement in net premiums written.

In the corresponding period last year, the insurer posted a net income of $34 million, or 66 cents based on a per-share basis.

The Greenwich, Conn.-based insurer reported that its first-quarter net premiums written went up 41 percent to $892 million, compared to 2001 when the company posted $634 million in premiums.

The improvement for net premiums written for specialty insurance and facultative reinsurance was especially strong, increasing by 49 percent and 118 percent, respectively, compared to the same period one year ago. Combined ratio dropped by 4.3 percent to 91.8, the company said.

William R. Berkley, chairman and chief executive officer for W. R. Berkley, said that all units of the property-casualty business generated underwriting profits except for treaty reinsurance, which is still seeing loss development from prior years.

Mr. Berkley added that prices are still moving up, although the pace of those increases has moderated somewhat. Price increases this year were over 12 percent for regional business, more than 25 percent for specialty business and more than 30 percent for reinsurance business.

In light of this ongoing price increase, the company expects a continued improvement in underwriting profitability, Mr. Berkley said.

W. R. Berkley's subsidiaries--including Acadia Insurance, Continental Western Insurance, Union Standard Insurance, and Firemen's Insurance--offer personal and commercial lines such as automobile, homeowners, and small business insurance. In 2002, it posted a net income of $175 million with revenues reaching $2.56 billion.