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The company recorded double-digit growth in earned income during the third quarter. -
Quarterly results show the first signs of slower organic growth, suggesting its middle-market focus may leave it more sensitive to rate moderation.
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Commercial P&C net written premiums were up 22% in the quarter, with P&C NWP growing by 16.9% to $9.9bn overall.
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James River stock tumbles, Brown & Brown slips, RenRe sees modest gains on Q3 results.
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The executive said social inflation, fraud, and other loss drivers have driven up the cost of storms, and contributed to model miss.
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The carrier expects losses of $5mn from Hurricane Ida net of reinsurance recoveries, and adverse development of $15.1mn in casualty reinsurance.
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Retail organic growth picked up to 8.3%, while consolidated Ebitdac margins expanded by almost 300bps, to 35.6%.
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The reinsurer grew GWP by 55% – to $1.77bn – helped by a surge in reinstatement premiums, but the company was weighed down by $727mn in net cat claims.
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The broader US commercial marketplace is competitive, with many admitted carriers writing coverage through different distribution channels.
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Growth and margin expansion will become increasingly challenging to achieve amid moderating rates, a slowing economic recovery and rising expenses.
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The firm’s margin expansion – despite rates tapering in some lines, including excess casualty – offset Ida losses during Q3.
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“We think about volatility as a component of risk,” Berkley said. “Clearly, the industry is feeling the challenges that come along with cat activity.”
