W.R. Berkley posts record $4.1bn in Q2 as underwriting improves

Pre-tax underwriting income rose 21.8% and the reinsurance segment's combined ratio improved sharply to 79.3%
W.R. Berkley posts record $4.1bn in Q2 as underwriting improves
INSURANCE NEWS
By Mark Rosanes
Jul 21, 2026

W.R. Berkley Corporation reported record premium volume and stronger underwriting margins in Q2 2026, as insurance lines offset a reinsurance decline. Gross premiums written reached $4.1 billion, up from $3.98 billion a year earlier, and the consolidated combined ratio improved to 90.0% from 91.6%.

Pre-tax underwriting income rose 21.8% to $317.5 million. The current accident year combined ratio before catastrophe losses came in at 88.1%, with catastrophe losses adding 2.0 loss ratio points.

Net income to common stockholders grew 12.7% to $452.3 million, or $1.15 per diluted share. Operating income rose 18.2% to $497.1 million, or $1.27 per diluted share.

Chairman, CEO, and president W. Robert Berkley, Jr. said the company focused on "business that offers appropriate risk-adjusted returns and favorable pricing" and called cycle management a "hallmark" of the company's approach. He said fixed-maturity reinvestment rates continue to exceed the portfolio's annual book yield.

Insurance segment holds ground

The insurance segment reported gross premiums written of $3.8 billion, up 5.4% from $3.61 billion, and net premiums written of $3.1 billion, up 3.7%. The segment's GAAP combined ratio improved to 91.4% from 92.1%, with the loss ratio tightening to 63.1% from 63.8%.

Professional liability net premiums written rose 11.6% to $333.4 million from $298.8 million. That growth came as US financial and professional lines rates fell 2% in Q1 2026, according to Marsh's Global Insurance Market Index.

Other liability remained the largest Insurance segment line at $1.25 billion in net premiums written. Workers' compensation held at $346.9 million, while auto grew to $461.9 million from $448.7 million.

Catastrophe losses in the insurance segment fell to $59.8 million from $77.6 million in Q2 2025.

Reinsurance segment's combined ratio improves sharply

The reinsurance and monoline excess segment's GAAP combined ratio improved to 79.3% from 87.4% in Q2 2025. Catastrophe losses in the segment fell to $2.6 million from $21.6 million a year earlier.

Gross premiums written for the segment fell to $341.2 million from $370.9 million. Net premiums written declined to $306.3 million from $337.7 million, with reinsurance casualty falling to $162.9 million from $188.9 million.

Investment income reaches record

Net investment income rose 10.4% to a record $418.7 million for the quarter. The core portfolio contributed $370.9 million, up from $328.4 million in Q2 2025.

The fixed-maturity portfolio carried an average credit rating of AA- and a duration of 3.2 years at June 30, 2026. Net invested assets stood at $34.2 billion at quarter-end, up from $33.2 billion at December 31, 2025.

Capital and balance sheet

W.R. Berkley returned $334.1 million to shareholders in Q2. That total comprised $185.5 million in special dividends, $111.5 million in share repurchases, and $37.1 million in regular dividends.

The company repurchased 1.68 million shares in the quarter and 6.16 million shares in the first half of 2026 for $413.9 million. Book value per share rose to $26.50 at June 30, 2026, from $25.72 at December 31, 2025.

Operating return on equity for the quarter was 20.5%, up from 20.0% in Q2 2025. Return on equity was 18.6%.

For the six months ended June 30, gross premiums written reached $7.93 billion. Net income totaled $967.5 million and operating income came in at $1.01 billion. Cash flow from operations was $1.47 billion for the first half of the year.

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