W R Berkley posts higher profit on strong investment performance
Oct 21 (Reuters) -Commercial insurer W R Berkley WRB.N reported nearly a 10% rise in the third-quarter profithelped by strong returns in its investment portfolio.
Insurers benefit in a higher interest rate environment because a significant portion of their investments is in bonds, leading to increased interest payouts.
Additionally, equity markets has also been rallying due to rate cut and easing recession concerns, helped insurer achieve higher returns on its investments.
The company's net investment income jumped 19.5% to $323.8million, compared to same quarter last year.
Its profit for the quarter ended Sept. 30 was $365.6 million, or 91 cents per share, compared with $333.6 million, or 82 cents per share, last year.
Greenwich, Connecticut-based W R Berkley's saw its net premiums written increase by nearly 7.3% as businesses spent more on insurance policies amid easing recession concerns.
The company reported a combined ratio of 90.9%, compared with 90.2% a year earlier. A ratio below 100% shows that an insurer earned more in premiums than it paid out in claims.
Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Tasim Zahid
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