W.R. Berkley Corporation (NYSE:WRB) Q3 2020 Earnings Conference Call - Final Transcript
Oct 20, 2020 • 05:00 pm ET
W. Robert Berkley, Jr.
think it is appropriate and manageable cost. It is our view at some point in the not too distant future, though not tomorrow, you will see likely interest rates began to move up. And at that moment in time those that reach too far out on the yield curve, you will likely see a reduction in book value because of the leverage that exists in the slight movements and interest rates moving up on the value of those bonds.
No different than what we've done with the alternative portfolio. There are certain investments that we have made that have not given us great investment returns from an operating perspective. But it is our view that we are focused on total risk adjusted return for our shareholders and because of our long-term view, we are willing to forego some ordinary regular investment income in order to create that additional value.
When we look out at the marketplace, again from our perspective, there is a lot of runway once again in front of us. We are encouraged by where the market is, and even more so where it is going. And from our perspective, the circumstance that we see today and expect tomorrow will only benefit more with a recovering economy, which we anticipate will hopefully be the case over the coming quarters.
So let me pause there, and David, if we could please open it up for questions.