WR Berkley’s revenue, profit and gross written premium (GWP) all increased in the second quarter, in results Chairman and CEO William R Berkley describes as “satisfactory”.

The company’s total revenue increased 11.4% to $US1.42 billion ($1.38 billion) in second quarter 2012, compared with second quarter 2011.

GWP increased 14.9% to $US1.43 billion ($1.39 billion) and net written premium increased 12.6% to $US1.19 billion ($1.15 billion).

Net income increased 32.4% to $US108.8 million ($105.4 million).

“Overall, we have been able to deliver satisfactory after-tax returns on our capital, both because of our improving underwriting results and our stable investment income,” Mr Berkley said.

Operating income, or net income excluding net investment gains and losses, jumped 37% to $US93 million ($90 million).

The combined ratio was 98.2% and average rates on renewed policies increased 6%, according to the company.

“The economy is not as robust as we had anticipated; thus, the pace of price increases is not accelerating as fast as we had expected,” Mr Berkley said. “We still see pricing momentum throughout the balance of the year.

“Many companies are beginning to recognise their weakening loss reserve position, which will continue to put further upward pressure on the current pricing environment.”

Total losses from catastrophes fell 58.6% to $US26.2 million ($25.4 million).

In the reinsurance segment, GWP grew 13.8% to $US121.7 million ($117.9 million).

Mr Berkley says he continues to have a positive outlook for the second half of the year.