WR Berkley enjoys leap in 2014 profits
US insurer WR Berkley posted solid growth in 2014 and a big increase in profits compared with the year before.
The company’s gross written premiums increased to $7 billion compared with $6.5 billion a year earlier. Its net profit increased to $648 million compared with $499.9 million a year earlier. The company posted a return on equity of 15 percent for the year, a big jump on the 11.6 percent it posted the year before.
William Berkley, chairman and chief executive officer, of WR Berkley said: “We were pleased to have achieved our targeted return on equity of 15 percent for the full year, as strong underwriting performance and expense management resulted in an improved combined ratio.
“While our core investment income remained under pressure, we were able to find investment opportunities which, in part, offset declining yields. Our investment funds earned 12.7 percent for 2014, although the fourth quarter was disappointing. The overall portfolio generated over $255 million of realised gains for the year. We expect both investment funds and realized gains to create substantial income going forward, despite their quarterly volatility.
“Our decentralised structure and long history of strategic cycle management have enabled us to create significant value for our shareholders by delivering superior returns over an extended period of time.
"As we move into 2015, our focus remains on growing the best performing areas of our business with improved underwriting results, overall investment returns, and capital management. We are optimistic that 2015 will be an excellent year."
