W. R. Berkley to report $105m gain from real estate investment sale

Written by Adam Cadle

04/01/2021

W. R. Berkley expects to report a realised pre-tax net gain of around $105m from the sale of one of its real estate investments, keeping with the company’s long-term strategy of investing for total return in order to continue delivering superior long-term value creation to shareholders despite a low interest rate environment.

The US insurance company said the sale of the office complex located in New York City will also lead to an approximate $52m pre-tax increase in stockholders’ equity as a result of the accounting treatment required by the transaction’s structure.

In a statement published on its website, the US insurer also announced the formation of Lifson Re, a special purpose insurer registered in Bermuda and licensed by the Bermuda Monetary Authority.

Lifson Re has been capitalised with more than $250m of equity from a small group of global investors with long-term investment horizons, including a minority participation by W. R. Berkley. The new company will participate alongside traditional reinsurers in a broad portfolio of property and casualty reinsurance treaties ceded by W. R. Berkley’s subsidiaries on a fully collateralised basis.

Lifson Re’s assets will be managed by an affiliate of W. R. Berkley.

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