Earnings

“We think about volatility as a component of risk,” Berkley said. “Clearly, the industry is feeling the challenges that come along with cat activity.”

Catastrophe losses cost the company $73mn – in line with a year ago – and underlying margins at the Greenwich-based carrier also improved.

Despite four major storms striking the US, Heritage sees Q3 cat losses decline by 35%.

The broker revealed continued pricing momentum, with cyber conditions fuelling 32% rate rises in financial and professional lines.

The carrier also signalled unfavourable reserve developments linked to asbestos and environmental exposures.

The broker has reported consecutive quarters of huge growth following a hit during the pandemic.

GWP at the carrier grew 18%, a slowdown from the 25% expansion in Q2, while underwriting profits were also boosted by stronger favorable prior-year development.

The company, soon to merge with Omnichannel’s SPAC, posted a gross profit of $8.0mn.

Capping the firm’s positive quarterly results, Travelers noted a strong but moderating rate in the business insurance segment in a positive read-through for commercial lines carriers.

The destruction of about 200,000 cars and a shortage of labor and auto parts have affected the company’s personal lines results.

Underwriting income fell, as catastrophe claims rose to $501mn from $397mn last year, and reserve development turned unfavorable.

If stagflation takes hold, there is scope for more rapid loss-cost inflation, reserve charges and growth challenges to come, the Inside P&C Research team writes.