WR Berkley combined ratio deteriorates 50 bps to 91.6% in marginal Q2 earnings beat

By Chris Munro

July 21 - (The Insurer) - An increased loss ratio caused WR Berkley’s Q2 2025 combined ratio to deteriorate by 50 basis points to 91.6%, while the carrier’s operating income per diluted share of $1.05 for the period narrowly beat analysts’ consensus forecast.

The Greenwich, Connecticut-based company’s second quarter 2025 combined ratio comprised a 63.1% loss ratio and 28.5% expense ratio, compared with 62.6% and 28.5%, respectively, in the prior-year period.

Excluding the 3.2 points, or $99.2 million, of current accident year catastrophe losses WR Berkely suffered in Q2 2025, the company’s combined ratio was 88.4%.

WR Berkley ended the three months to June 30, 2025, with operating income per diluted share of $1.05, ahead of the $1.02 it booked in the prior-year period, and a narrow beat on the $1.02 that was the consensus forecast of 15 analysts, as compiled by S&P Capital IQ.

Operating income reached $420.5 million, compared with $410.2 million in 2024’s second quarter.

Gross premiums written increased 7.0% year on year to $3.98 billion, while net premiums written grew 7.2% to $3.35 billion.

Net investment increased by $7.1 million year on year to a record $379.3 million.

WR Berkley’s insurance combined ratio improved by 30 basis points year on year to 92.1%, while its GPW increased by 7.3% to $3.61 billion and its NPW grew 7.2% to $3.01 billion.

Its reinsurance and monoline excess business' combined ratio deteriorated by 5.6 points to 87.4%, with the increase driven by a 4.9 point rise in its loss ratio to 57.7%.

Reinsurance and monoline excess GPW was $370.9 million for 2025’s second quarter, compared with $356.9 million in the prior-year period. The unit’s NPW reached $337.7 million, up from Q2 2024’s $316.3 million.

“Our strong performance continued into the second quarter of 2025, with an annualized return on beginning-of-year common stockholders' equity of 19.1%,” the company said in a statement.

“Net income grew year over year, driven by higher underwriting gains and improved investment income, notwithstanding above-average industry catastrophe losses during the quarter.

“Book value per share grew 6.8%, before $223.8 million of capital returned to shareholders through special and ordinary dividends,” it added.

“We continue to carefully manage the underwriting cycle in each market served by our specialized businesses. This disciplined approach has supported superior long-term, risk-adjusted returns and consistently lower volatility over decades.

“We remain confident in our ability to deliver exceptional value to shareholders throughout the remainder of 2025 and well into the future,” WR Berkley continued.