Yesterday, WR Berkley reported second-quarter earnings, posting an underwriting profit in spite of elevated catastrophes and significant losses from Covid-19.
The carrier’s May results continued to display the multiple moving pieces resulting from the Covid-19 crisis, with loss ratios low but appearing to be heading back up, but elevated expense offsets.
May CPI data included another downward spike in auto price inflation driven by declines in accident frequency, with countrywide lockdowns related to Covid-19 leading to rebates.
As fundraising accelerates, we believe that capital formation coming in the front door as equity capital must be viewed in the context of alternative capital leaving through the back.
