W. R. Berkley, the Greenwich, Connecticut-based commercial insurer, reported a rise in operating income for the fourth quarter ending December 31, citing steady underwriting performance alongside stronger returns from its investment portfolio.
The company recorded operating income of $449.6 million, or $1.13 per share, for the quarter, compared with $410.4 million, or $1.02 per share, in the same period a year earlier. Net investment income for the commercial lines insurer totaled $338.2 million, up from $317.4 million a year ago. Net written premiums increased 2.1% to $3.0 billion for the quarter.
Berkley reported a combined ratio of 89.4% for the quarter, an improvement from 90.2% in the year-ago period. A combined ratio below 100% indicates the insurer collected more in premiums than it paid out in claims.
Company shares rose 1.6% in trading after the bell. The stock has gained a little over 22% in 2025, outperforming broader market indices during that period.
The firm’s results arrive as businesses continue to spend on insurance even while curbing other expenditures, with buyers placing a priority on protection against risks. The environment for that demand includes rising tariff uncertainty, geopolitical tensions and an increase in climate-related catastrophes, which have prompted companies to maintain or expand insurance coverage.
Commercial carriers have supported this resilience by adapting rapidly to shifts in the insurance market cycle and managing through inflationary pressures, moves that have contributed to a stabilization in underwriting performance, according to a recent industry report referenced by the company.
Context on financial drivers
- Net written premiums: up 2.1% to $3.0 billion in the quarter.
- Net investment income: $338.2 million versus $317.4 million a year earlier.
- Operating income: $449.6 million, or $1.13 per share, compared with $410.4 million, or $1.02 per share, in the prior year period.
- Combined ratio: improved to 89.4% from 90.2% year-over-year.
The company’s performance mirrors broader industry trends in which insurers have seen improved investment portfolios following a strong quarter for markets, noted company commentary that linked investor optimism about the economy and expectations of Federal Reserve rate cuts to better returns for insurers’ investment holdings.
Other major property and casualty carriers have reported similar patterns, with stronger underwriting outcomes and higher investment returns in recent reporting periods.
Summary
W. R. Berkley’s fourth-quarter results were bolstered by modest premium growth, higher investment income and a tighter combined ratio, producing higher operating income and supporting a gain in the company’s stock price in after-hours trading.