WR Berkley CEO: Losses From Tech Outage Expected to Be ‘Manageable’

W.R. Berkley CEO W. Robert Berkley, Jr. said the company does not see last week’s global network systems outage “being a material loss to the organization.”

“I would be surprised if we didn’t have any loss activity, but we certainly do not envision this being something of materiality or great consequence at this stage,” he told analysts during a call to discuss second-quarter earnings.

Berkley referenced the typical policy waiting period a network must be impaired before business interruption losses can be calculated in cyber insurance policies. So-called time deductibles are different for each policy, ranging anywhere from 4-24 hours.

Related: Trigger Warning: Cyber Policy Wordings to Impact Coverage for Tech Outage

Given how quickly many organizations appeared to “get back on their feet,” Berkley said losses from the CrowdStrike event will “prove to be manageable.”

“I think for many, perhaps it was a reminder or a wake-up call for the systemic exposure that exists around much of the technology that the world uses to operate,” he added.

Looking at earnings for the Greenwich, Connecticut-based commercial insurer, second quarter net premiums grew 11.2% to about $3.1 billion. This was the first time ever premiums reached the $3 billion mark for a quarter, according to Rich Baio, chief financial officer.

Second quarter net income increased to about $371.9 million compared to $356.3 million during the same period in 2023. Total accident-year catastrophe losses for the insurer were nearly $90 million compared to $53.5 million during the second quarter a year ago. The consolidated combined ratio for the period came in at 91.1, about 1.5 higher than 2023.

For the year thus far, W.R. Berkely booked a 25% increase in net income to $814,380. It’s combined ratio has remained steady compared to last year at 90.

Topics Profit Loss InsurTech Tech