Discipline is slipping in casualty reinsurance, warns WR Berkley

Casualty reinsurance is showing signs of price inadequacy as discipline slips throughout the industry, the chief of US re/insurer  WR Berkley has warned.

“It seems that the reinsurance market struggles to have discipline across the board,” CEO Robert Berkley (pictured) told his company’s second quarter earnings call.

“Just as they are getting more discipline in the property space, it would seem that professional and liability space may not have the same discipline it had yesterday.”

Berkley appears to allocate capital in line with his headline views. The WR Berkley group, which admittedly writes only a small portion of its business in reinsurance lines, has spent the first half of 2023 cutting its casualty reinsurance exposure.

Net premiums written in casualty reinsurance in the second quarter were down 2.3% year on year, pulling the H1 tally lightly below prior year levels.

Property reinsurance, in turn, has enjoyed a renaissance at WR Berkley under the new hard market. Q2 net written premiums are up 63% year on year to bring the H1 tally to a 37% y/y gain.

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