NU Online News Service, Oct. 27, 10:35 a.m. EDT
W. R. Berkley Corp. says its third-quarter net income was down 18.1 percent to $77 million, from $94 million during the same period a year ago.
Catastrophe losses were $51 million during the third quarter compared to $22 million during the same time in 2010.
Net income for the first nine months is down 14 percent to about $276.9 million. For the first nine months of 2011 and 2010, catastrophe losses were $139 million and $75 million respectively, the commercial insurer says.
Looking past the catastrophes, Chief Executive Officer William R. Berkley says, "The visibility of a cycle change is even more evident."
Prices during the quarter were up 3 percent from a year ago.
"We believe that price increases and premium-volume growth will continue," adds Berkley in a statement.
Excess capital in the market has never driven a market turn, it has "merely added impetus or restraint," he says. "Given the current interest rate environment, the industry needs significant price increases in nearly all lines of business in order to achieve even minimally adequate returns."
Net premiums written increased 14 percent during the third quarter.
W.R. Berkley's third-quarter combined ratio was 99.1 compared to 95.4 for the 2010 third quarter.
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