WR Berkley Corp. reported on Monday a net profit of $228.8 million for the third quarter, down 12.4% from the same period last year.
The Greenwich, Conn.-based insurer said after markets closed that net premiums for the quarter rose 10.8% to $2.58 billion.
The total cost percentage for the quarter was 92.1%, compared to 90.4% in the third quarter of last year.
“The main driver in the quarter was Hurricane Ian,” Richard Baio, executive vice president and chief financial officer, said in a call with analysts.
Rob Berkley, president and CEO, said on the call, “The overall marketplace remains very interesting from our perspective. There are pockets of the market that are still extremely attractive”; and others where the competition is surprising.
Although “the market is still as cyclical as ever,” “different product lines march to the beat of their own drum, which translates to different points in the cycle at any given time” although the surplus and excess row space “remain very attractive.”
He said the company was considering becoming more active in the property catastrophe reinsurance market, but only if interest rates continue to rise to a high enough level, and that this is unlikely to be for more than a year or two.
“We’re paying close attention” to the market “not only as a buyer, but potentially as a meaningful seller, but only if the revenue is sufficient,” he said. “We’re not shy about leaning into it if we think it makes sense” from a risk-adjusted perspective, he said.