WR Berkley highlights hardening pricing as it posts bullish 2019 results

Re/insurer WR Berkley has said that its full year 2019 results indicate a reviving market. The company reported an improved combined ratio as compared with 2018 and said that a hardening pricing environment promises opportunities for meaningful growth.

The company’s gross written premiums were $8.2 billion in 2019, versus $7.7 billion in 2018. It made a net profit of $682 million compared with £641 million the year before. Its combined ratio for 2019 was 93.8 percent, as compared to 95.3 percent in 2018.

The company commented: “We were pleased to see further compelling evidence of an improving market in the fourth quarter of 2019. Rate increases accelerated, which is the natural progression in a hardening market, to approximately nine percent excluding workers’ compensation. As rate increases remain robust, we expect continued opportunities to grow the top line.

“Our objective remains the creation of book value for our shareholders through an appropriate risk-adjusted return on equity. We focus on our investment portfolio’s total return and consciously accept a degree of variability in our alternative investment performance. Although the fourth quarter was challenging for our alternative investments, it is our belief that they will continue to produce above-average long-term returns and remain a core part of our investment strategy.

“Our book value per share grew at a rate of 17.3 percent for the full year, before the return of over $326 million to shareholders through special and ordinary dividends and share repurchases. We believe the market is at a point where those companies that have appropriately managed their businesses through the cycle will be able to grow meaningfully in this improving pricing environment. As we look to 2020, we are confident that our company is well positioned to continue to deliver superior value to our shareholders.”