US insurer WR Berkley has reported an 8% increase in second-quarter profit, while flagging a more competitive reinsurance market and “extraordinary” growth in underwriting agencies. 

Net income totalled $US401.29 million ($606.5 million) and gross written premium was $US3.9 billion ($5.9 billion), up 7% on the same quarter last year. 

The company attributes the result to underwriting gains and improved investment income, while noting industry catastrophe losses were above average. 

President and CEO Bill Berkley says property is becoming more competitive, fuelled by a reinsurance market willing to provide capacity at a lower rate. 

Underwriting agencies are also more active, amid a mismatch between “those with the pen and those with the capital”. 

Mr Berkley says much agency market growth has been generated by new entrants that lack expertise, supported by reinsurance capacity with an “unquenchable thirst for growth without necessarily having their finger fully on the pulse. We’ll have to see how this plays out.”