WR Berkley has reported a 4.7% drop in profit for the six months to June 30, amid lower investment returns.

However, Chairman and CEO Bill Berkley says rates on renewal were up in the second quarter.

The company recorded a $US232.57 million ($250.8 million) profit for the six months, while second-quarter profit was up 6.5% to $US115.96 million ($125.05 million) on the corresponding period last year.

Mr Berkley says the second-quarter improvement is due to higher underwriting margins and a declining expense ratio.

“We expect our returns to increase as our earned premium reflects the recently improved pricing levels,” he said.

The combined ratio for the second quarter was 96.6%, and average rates on renewed policies were up 6.5%.

Second-quarter gross written premium grew to $US1.62 billion ($1.75 billion) from $US1.43 billion ($1.54 billion).

Mr Berkley predicts yields will remain under pressure, but says the company expects to benefit from capital gains for the rest of the year.