Insurer W.R. Berkley reported a net loss of $28 million for the third quarter of this year, continuing a trend among insurers seeing losses from the combination of catastrophe claims and investments going south.
The company's net loss was a $208 million turnaround from last year, when net income of $180 million was reported. The loss per share stood at 17 cents, compared to net income of 93 cents last year. Revenues decreased 25 percent, or $352 million, to $1.06 billion.
The combined ratio for the quarter increased 7.7 points to 96.2.
For the first nine months, the company reported net income of $241 million, down 57 percent–or $319 million–compared to $560 million last year. Earnings per share stood at $1.37, off $1.44 a share. The combined ratio rose 5.3 points to 93.2.
Revenues over the first nine months dropped 13 percentto $3.63 billion, down $524 million from $4.15 billion last year.
Weather-related losses–including from Hurricanes Ike, Gustav and Dolly, as well as an unusually high number of wind and hail storms in the Midwest–totaled $62 million in the quarter. The losses are net of reinsurance, and include reinstatement premiums and estimated assessments from the Texas Windstorm Insurance Association.
The company also reported realized investment losses of $220 million for the quarter, compared to an $812 million gain last year.
For the first nine months, realized investment losses stand at $248 million, compared to $13 million last year.
"Challenges stemming from the global investment environment and an unusual number of natural disasters had an adverse impact on third-quarter profits," William R. Berkley, chairman and chief executive officer, said in a statement.
"Still, we remain very well positioned to take advantage of what we see as an improving property-casualty insurance marketplace," he added. "This quarter showed a modest reduction in the rate of price changes, as year-over-year price declines were less this quarter than in the previous quarter. While we have yet to see price increases, we believe the tide is showing signs of turning."
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