NU Online News Service, Oct. 28, 3:48 p.m.EDT

Insurer W.R. Berkley Corp. reported third-quarter net incomerose substantially from a loss for the period last year, and itschief executive predicted a 2010 insurance market upturn.

Greenwich, Conn.-based Berkley reported net income of $98million, or 59 cents per share, compared to net loss of $28million, or negative 17 cents per share, for the same period lastyear. Revenues for the period grew close to 8 percent, or $80million, to $1.14 billion for the third quarter.

For the first nine months net income was $175 million, off 27percent, or $66 million, from last year, resulting in a 32 centdrop per share to $1.05. Revenues were off 10 percent, or $374million, to $3.26 billion.

Investment income rose 15 percent, the combined ratio dropped1.1 points from the third quarter last year improving to 95, andthe operating return on equity was close to 15 percent.

In a statement, Berkley Chairman and Chief Executive OfficerWilliam R. Berkley said, "Our balanced approach to managing theinsurance cycle and our overall conservative risk management haveenabled us to meet our risk-adjusted return objectives, even as weapproach the bottom of the insurance cycle."

He continued, "Although the insurance cycle has not yet turned,for the quarter pricing on renewal business year over year is downless than one half percent, and our premium volume is down lessthan 3 percent. New business from our start-ups is, in part,offsetting premium declines from our established companies."

Reflecting on the general market, he said, "At current pricinglevels with existing low interest rates, we believe the industry isoperating at a net loss on an accident-year basis, and a turn inthe cycle is inevitable. We anticipate modest improvement in theeconomy and a turn in the insurance pricing environment in thefirst half of next year. We continue to believe that we will meetour objective of a return of 15 percent equity."