What’s New: In Brief (February 24, 2010)

W.R. Berkley Corporation reported a net income of $309 million in 2009, an increase over the $281 million it reported in 2008.
The firm’s international operations reported a combined ratio of 100.1% for 2009, marking a slight decrease from 2008’s combined ratio of 100.6%.
The international operation’s net premiums written also improved from $311 million in 2008 to $375 million last year.
“As we maintain disciplined pricing, our existing book of business continues to modestly shrink,” said William R Berkley, chairman and CEO of W.R. Berkley. “It is still hard to find new business that is attractively priced in the current marketplace. However, we are beginning to see improving price trends in selected lines of business.”

A financial institution’s asset size should not be the primary determinant of systemic risk, reports The Property Casualty Insurers Association of America (PCI).
PCI commissioned NERA Economic Consulting to conduct a study to identify factors that contribute to systemic risk. The study comes as the US Senate mulls sweeping financial services regulatory reform measures.
The report, Problems with Reliance on Firm Size for Systemic Risk Determination, reached a number of conclusions that “should give lawmakers pause before they create a systemic risk calculation based solely on a firm’s size,” a PCI release said.
The findings included:
•    job losses and other economic inefficiencies;
•    consumer price increases for basic financial services; and
•    heightened systemic risk as a result of increased moral hazard.
Rather than focusing solely on firm size, “we need to instead focus on the standards governing a firm’s leverage, liquidity and transparency.”
The study’s findings also support the conclusion that property and casualty insurers did not contribute to the current financial crisis, PCI added