Greenwich property-casualty insurer W. R. Berkley Corp. boosted third-quarter profits by a third, the beneficiary of a recurring underwriting cycle in which insurers now must pump up clients’ premiums to replace woeful investment returns.
For three months ended Sept. 30, W.R. Berkley said it netted $101 million, or 71 cents a diluted share, up 32 percent from $76 million, or 53 cents a share, netted the same period last year.
Chairman and CEO William R. “Bill’’ Berkley was unabashed in his reasoning for his firm’s steep profit climb.
“It is clear, as we enter the second year of significant rate increases, that the cyclical change is no longer hypothetical,’’ Bill Berkley said in a statement. “… The consequence of declining fixed income yields has increased the need for meaningful improvement in underwriting margin. We anticipate continued price increases over the next 12 months.’’
The insurer said the average premium hike was 7 percent in the quarter.
Meantime, W.R. Berkley said it spent $73 million, or an average $37.05 a share, to buy back two million shares of its common stock in the three-month period.
