WR Berkley has reported net income of $US108.97 million ($144.89 million) for the second quarter to June 30, down from $US123.04 million ($163.6 million) in the corresponding period last year.

The US-based commercial lines insurer remains upbeat despite the drop, which is attributed to higher expenses.

“Although the environment remains competitive, net premium written continued to grow as we target areas of the market that offer attractive margins,” WR Berkley says.

“We are pleased with our results for the second quarter, especially in light of significant industry-wide catastrophe activity, as well as global uncertainty that contributed to volatility in the financial markets.”

Second-quarter gross written premium increased to $US1.94 billion ($2.58 billion) from $US1.81 billion ($2.41 billion), and net written premium grew to $US1.64 billion ($2.18 billion) from $US1.54 billion ($2.05 billion).

Investment income improved to $US129.05 million ($171.58 million) from $US127.58 million ($169.62 million).

The combined operating ratio deteriorated to 94.9% from 94.2%.

For the half-year to June 30, net income fell to $US228.48 million ($303.75 million) from $US241.34 million ($320.86 million).