WR Berkley says third-quarter earnings grew 36% to $US136.97 million ($141.81 million) as revenues increased.

Gross written premium (GWP) gained to $US1.67 billion ($1.73 billion) from $US1.49 billion ($1.54 billion) in the corresponding period last year.

“Given current interest rates, we are focusing on improving underwriting margins by continuing to increase our rates and reducing our expense ratio,” Chairman and CEO Bill Berkley said.

Average rates on renewed policies increased by 6.4% in the September quarter.

Gains in the non-fixed-income portfolio were driven by equity securities, and the company is optimistic overall investment returns will improve over the next 18 months, Mr Berkley says.

The combined ratio moved to 93.9% from 95.8%, aided by an improved loss ratio.

He says some insurers have moved into the specialty arena without understanding the risks they will assume.

“Now a number of these overly aggressive competitors are starting to pay the price for their lack of underwriting discipline. Price alone will not solve their problems. This will create further opportunities.”

For the nine months to September 30, WR Berkley’s net income grew to $US369.55 million ($382.61 million) from $US345.1 million ($357.30 million) and GWP gained to $US4.92 billion ($5.09 billion) from $US4.33 billion ($4.48 billion).