WR Berkley says first-quarter net profit dropped 14% as investment income declined.

Net income for the three months to March 31 fell to $US116.62 million ($113.16 million) from $US135.32 million ($131.31 million) in the corresponding period last year.

Investment income dropped to $US135.93 million ($131.90 million) from $US157.62 million ($152.95 million).

“Our management team recognises that to achieve adequate returns in the current low interest rate environment, increased underwriting margins are required,” Chairman and CEO Bill Berkley said. “We believe this is attainable.”

Gross written premium for the quarter grew to $US1.63 billion ($1.58 billion) from $US1.4 billion ($1.36 billion).

The company predicts the underwriting environment will create opportunities, with prices continuing to increase faster than loss costs.

“We are optimistic that our business will continue to improve and 2013 will be an excellent year,” Mr Berkley said.