W.R. Berkley Reports Slight Price Increases in Q1

Prices were up in nearly all segments at W.R. Berkley Corp. in the first quarter while overall net written premiums grew 10 percent.

Net income for the quarter was $116 million, or 79 cents per share, compared to $119 million, or 74 cents, in the first quarter 2010. Operating income for the quarter was $98 million, or 66 cents per share, down from $115 million or 72 cents per share a year ago.

The combined ratio was 96.3 percent, while the renewal retention rate was close to 80 percent in the quarter, according to the company.

The company’s average price increase was about one percent, which William R. Berkley, chairman and CEO of the Connecticut-based company, said was the first time in 17 quarters that has happened. He said growth came mainly on international accounts and select specialty markets.

Berkley said there are increasing, albeit gradual, signs of a turn in the cycle.

“Recent events as well as revisions to catastrophe modeling tools are changing the way people view catastrophe exposures. We are beginning to see material rate increases not just limited to catastrophe business, but also in a number of other lines of business,” the CEO said.

He said his company has selectively increased the non-casualty component of its business mix and is pleased with the expansion of its non-U.S. business.

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