Jan 26 (Reuters) - Commercial insurer W. R. Berkley WRB.N reported a rise in fourth-quarter operating profit on Monday, helped by steady underwriting performance and gains from its investment portfolio.
Insurance spending has held firm even as companies cut back elsewhere, with buyers prioritizing protection against risks amid a backdrop of rising tariff uncertainty, geopolitical tensions and mounting climate-related catastrophes.
Commercial carriers have helped sustain that resilience by adjusting swiftly to market-cycle shifts and navigating inflationary pressures, moves that have contributed to stabilizing underwriting performance, according to a report by McKinsey & Company.
The Greenwich, Connecticut-based insurer's net written premiums rose 2.1% to $3 billion in the quarter.
Property and casualty insurance giant Travelers TRV.N also reported strong results last week, with stronger underwriting performance and higher investment returns.
Shares of W. R. Berkley were up 1.6% in trading after the bell. The stock gained a little over 22% in 2025, outperforming the broader markets.
A strong quarter for the markets, driven by investors' optimism regarding the economy amid the Federal Reserve's rate cuts, improved the investment portfolios of major insurers.
Net investment income for the commercial lines insurer came in at $338.2 million in the fourth quarter, up from $317.4 million last year.
W. R. Berkley reported an operating income of $449.6 million, or $1.13 per share, for the quarter ended December 31. That compares with $410.4 million, or $1.02 per share, last year.
The company reported a combined ratio of 89.4% for the quarter, down from 90.2% in the year-ago period. A ratio below 100% shows that an insurer earned more in premiums than it paid out in claims.
(Reporting by Pritam Biswas in Bengaluru; Editing by Alan Barona)
((Pritam.Biswas@thomsonreuters.com))