Earnings

The broader US commercial marketplace is competitive, with many admitted carriers writing coverage through different distribution channels.

Growth and margin expansion will become increasingly challenging to achieve amid moderating rates, a slowing economic recovery and rising expenses.

The firm’s margin expansion – despite rates tapering in some lines, including excess casualty – offset Ida losses during Q3.

“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.