Berkley Posts Record Third-Quarter Underwriting Profit of $296 Million as Net Income Falls
Key Facts
W. R. Berkley posted underwriting profit of $296 million in the third quarter of 2026, a result Chief Financial Officer Richard Baio described on the earnings call as "record third-quarter underwriting profit." The company had scheduled its earnings release for after the market close on Monday, October 19, 2026, according to its investor notice announcing the disclosure date. The record underwriting result coincided with a decline in net income attributable to common shareholders to $446,005 thousand, according to the earnings release filed with the U.S. Securities and Exchange Commission. Net income in the third quarter of 2025 was about $511,032 thousand, remaining above the current period's result despite the level of underwriting profit announced by management. Diluted earnings per share were $1.14 for the third quarter, according to the same release.
On operating performance, Berkley reported operating income of $456,541 thousand for the third quarter of 2026, exceeding net income attributable to common shareholders for the same period. The company classifies this income as a non-GAAP measure, alongside the net income result presented in its financial release. Operating earnings per share were $1.17, also exceeding reported diluted earnings per share for the quarter, according to the figures in the filing. Annualized return on equity, based on third-quarter performance, was 18.4%, according to the company statement. Annualized operating return on equity on the same basis was 18.8%, exceeding the return based on net income for the period.
In its insurance business, group net premiums written rose to $3,267,602 thousand in the third quarter of 2026, according to the earnings release the company filed with the U.S. Securities and Exchange Commission. The group had reported net premiums written of $3,226,930 thousand in the third quarter of 2025, putting group-wide premiums above their year-earlier level. Within the insurance segment, net premiums written grew 3.2% year on year, according to the segment breakdown in Berkley's quarterly earnings disclosure. On coverage pricing, the company said the average insurance rate increase was about 4.0% excluding workers' compensation. Premium growth at the group and insurance segment coincided with these rate increases during the period, alongside the underwriting profit management described as a record for the quarter.
The group's reported combined ratio was 90.8% in the third quarter of 2026, according to Berkley's statement, among the underwriting performance measures released with its financial results. The current accident-year combined ratio excluding catastrophes was 88.1%, according to the separate measure the company provided for the same period. Current accident-year catastrophe losses totaled $85,932 thousand, forming one component of the reported quarterly insurance results. On operations, the chief executive said the insurance submission intake process had become more efficient, according to remarks from the earnings call reported by The Motley Fool. Describing the extent of the improvement, he said the process had "become more than 20% more efficient," referring to the intake of submissions and work associated with issuing insurance quotes.
Alongside underwriting, Berkley's net investment income totaled $383,537 thousand in the third quarter of 2026, according to the earnings release filed with the U.S. Securities and Exchange Commission. The company said income from its core investment portfolio rose 12.0% from a year earlier, driving investment income growth during the quarter. The company's performance thus combined record underwriting profit for the period with an increase in core portfolio income, two aspects of the results management presented to investors. At the same time, net income attributable to common shareholders remained below its level in the corresponding quarter last year. Group premiums written moved in a different direction from net income, rising year on year during the period covered by the announcement.
Against the backdrop of the quarterly results, Berkley returned a total of $728.6 million in capital to shareholders during the first nine months of 2026, according to its financial release. That total covers the period from the start of the year through the end of the period covered by the company's announced third-quarter results. Berkley presented the capital return alongside profitability measures, return on equity and the performance of its insurance and investment businesses in its earnings disclosure. At the close of the earnings call, management indicated its next communication with investors would be in January, without specifying a day. According to the transcript published by The Motley Fool, management said, "We look forward to speaking with you all again sometime in January."