Global insurer WR Berkley has posted a third-quarter income fall of 18% compared with the third quarter last year, dropping from $US93.6 million ($87.3 million) to $US77.3 million ($72.1 million).

Chairman and CEO Bill Berkley says the company is pleased with the results given the level of catastrophe activity, the difficult economic environment and historically low interest rates.

“We are confident that our results will benefit from the improving market conditions as well as our focus on optimising risk-adjusted returns and increasing book value for our shareholders,” he said.

Zurich-based Ace posted a $US31 million ($29 million) loss compared with a $US675 million ($630 million) profit in the corresponding period last year, but its after-tax operating income was up 10% to $US759 million ($708 million), a new record for the company.

The loss was caused by a charge related to variable-annuity reinsurance that cost $US660 million ($617 million), with Chairman Evan Greenberg also blaming “an historic drop in interest rates – the lowest level in over 100 years – and an equity market correction driven by Federal Reserve action and a flight to safety by investors”.

Despite the very difficult financial market, “all principal businesses performed well”.

He says the company is well placed for a profitable last quarter.

Bermuda-based (re)insurer Arch Capital Group saw its net income increased 14.2% to around $US169 million ($157.6 million) for the third quarter, but its catastrophe-related losses were up 146.3% to $US59.6 million ($55.6 million) over the third quarter last year.

Chairman Constantine Iordanou said Arch’s third-quarter result was “satisfactory when we take into consideration the difficult market conditions that we operate in”.