W.R. Berkley Corporation, a re/insurance holding firm, revealed its Q1 of 2023 and it is observed that its net investment income increased by over 29% as a growing share of its fixed-maturity portfolio was (re)invested at higher interest rates.
Given the inverted yield curve and market volatility, the business writes, “We maintained the short duration and high quality of our fixed-maturity portfolio.”
In the first quarter, W.R. Berkley had a yearly return on equity of 17.4% and an increase in book value per share of 7.2%, excluding dividends and share repurchases.
In the first quarter of 2023, gross premiums written totaled $3.05 billion, up from $2.86 billion in the same quarter of 2022. In addition, net premiums written rose to $2.57 billion from $2.41 billion in the same quarter the previous year.
In contrast to the $590.6 million in Q1 2022, the net income made available to ordinary shareholders was $294.1 million. Operating income decreased somewhat from $306.9 million in 2022 to $276 million. The first quarter of 2023 saw a pre-tax underwriting income of $234.4 million.
Prior to catastrophe losses of 1.9 loss ratio points, W.R. Berkley’s current accident year combined ratio was 87.7%.
The company’s reported combined ratio was 90.6%, which included catastrophe losses from the current accident year of $47.9 million and those from the prior year’s development, which were mostly caused by property catastrophe losses of about $24 million.
$132.3 million in special dividends, $26.3 million in regular dividends, and $135 million in share repurchases made up the $293.8 million in total capital given to shareholders in the first quarter.
“The business continued to grow in areas that we anticipate will meet or exceed our targeted risk-adjusted return,” W.R. Berkley stated in a written statement.
Even while there is more evidence that different market segments and lines of business are not growing at the same pace, our structure and discipline allow us to capitalize on and manage each of these phases to maximize profitability while keeping a careful eye on loss trends.
As we strategically grow our business, “we continue to carefully evaluate the available opportunities to deploy capital.” The Company continues to focus on risk-adjusted returns in all aspects of its business. Over the years, this discipline has helped us manage risks and seize opportunities to produce better outcomes for our shareholders. Regarding the prospects we anticipate for 2023 and beyond, we remain optimistic. The company said.
