W R Berkley Reports Strong Q3 Profit

(Reuters) – Commercial insurer W R Berkley reported a nearly 10% rise in third-quarter profit, driven by robust returns in its investment portfolio.

Insurers benefit in a higher interest rate environment since a significant portion of their investments is in bonds, leading to increased interest payouts. Additionally, equity markets have rallied due to rate cuts and easing recession concerns, helping insurers achieve higher returns on their investments.

The company's net investment income jumped 19.5% to $323.8 million, compared to the 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 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% indicates that an insurer earned more in premiums than it paid out in claims.