W. R. Berkley Corporation Reports Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

W. R. Berkley (NYSE: WRB) reported strong fourth quarter and full year 2024 results, with notable financial achievements. Q4 highlights include a 30.9% return on equity and net income increase of 45.0% to $576 million. The company achieved record operating income of $453 million, up 15.5%.

Full year 2024 performance showed remarkable growth with record annual pre-tax underwriting income of $1.1 billion and net income of $1.8 billion. Gross premiums written increased 9.6% to $14.2 billion, while net investment income grew 26.6% to $1.3 billion. Book value per share grew 23.5% before distributions.

The company returned significant capital to shareholders, totaling $835.6 million through special dividends ($412.3M), share repurchases ($303.7M), and regular dividends ($119.6M). The calendar year combined ratio of 90.2% demonstrated effective volatility management, with average rate increases excluding workers' compensation at approximately 7.9%.

Positive

• Q4 net income increased 45.0% to $576 million
• Record annual pre-tax underwriting income of $1.1 billion
• Net investment income grew 26.6% to record $1.3 billion
• Book value per share grew 23.5%
• Operating cash flow increased 25.6% to record $3.7 billion
• Strong combined ratio of 90.2%
• Gross premiums written grew 9.6% to record $14.2 billion

Negative

• None.

Insights

Financial Analyst

W.R. Berkley's Q4 and full-year 2024 results showcase exceptional operational excellence and strategic execution. The standout 30.9% Q4 ROE demonstrates the company's ability to generate superior returns in a competitive market. Three key aspects deserve attention:

Underwriting Excellence: The 90.2% combined ratio, coupled with 7.7% rate increases (excluding workers' compensation), indicates strong pricing power and disciplined risk selection. This performance is particularly impressive given the industry's challenging catastrophe loss environment, with catastrophe losses contributing only 2.6 points to the loss ratio.

Investment Strategy: The 26.6% growth in investment income to $1.3 billion reflects astute portfolio positioning. Current reinvestment rates exceeding the annual book yield suggest continued momentum in investment earnings for 2025, supported by the record $3.7 billion operating cash flow.

Capital Management: The company's balanced approach to capital deployment is evident in the return of $835.6 million to shareholders through dividends and share repurchases, while maintaining strong operational flexibility. The 23.5% growth in book value per share before capital returns demonstrates effective value creation.

The decentralized operating model proves particularly advantageous in the current market environment, allowing nimble responses to varying market conditions across business lines. This structural advantage, combined with robust rate adequacy and strong investment performance, positions WRB favorably for continued outperformance in 2025.

Fourth Quarter Return on Equity of 30.9% and Operating Return on Equity of 24.3%;

Quarterly Net Income and Record Operating Income Increased 45.0% and 15.5% to $576 Million and $453 Million;

Record Annual Pre-Tax Underwriting Income of $1.1 Billion and Net Income of $1.8 Billion

GREENWICH, Conn.--(BUSINESS WIRE)-- W. R. Berkley Corporation (NYSE: WRB) today reported its fourth quarter and full year 2024 results.

Summary Financial Data (Amounts in thousands, except per share data)
	Fourth Quarter								Twelve Months
		2024				2023				2024				2023
Gross premiums written	$	3,497,284			$	3,232,710			$	14,211,090			$	12,972,006
Net premiums written		2,936,750				2,719,668				11,972,096				10,954,467
Net income to common stockholders		576,101				397,340				1,756,115				1,381,359
Net income per diluted share (1)		1.44				0.98				4.36				3.37
Operating income (2)		452,591				391,753				1,667,612				1,344,567
Operating income per diluted share (1)		1.13				0.96				4.14				3.28
Return on equity (3)		30.9	%			23.6	%			23.6	%			20.5	%
Operating return on equity (2) (3)		24.3	%			23.2	%			22.4	%			19.9	%

(1)		The 2023 per share amounts were restated for comparative purposes to reflect the 3-for-2 common stock split effected on July 10, 2024.
(2)		Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and related expenses.
(3)		Return on equity and operating return on equity represent net income and operating income, respectively, expressed on an annualized basis as a percentage of beginning of year common stockholders’ equity.

Fourth quarter highlights included:

• Return on equity and operating return on equity of 30.9% and 24.3%, respectively.
• Net income increased 45.0% to $576 million and operating income increased 15.5% to a record $453 million.
• The current accident year combined ratio before catastrophe losses of 2.6 loss ratio points was 87.7%, and the reported combined ratio was 90.2%.
• Average rate increases excluding workers' compensation were approximately 7.7%.
• Operating cash flow increased 16.0% to $810.0 million.
• Total capital returned to shareholders was $287.8 million, consisting of $190.0 million of special dividends, $67.4 million of share repurchases and $30.4 million of regular dividends.

Full year highlights included:

• Return on equity and operating return on equity of 23.6% and 22.4%, respectively.
• Book value per share grew 23.5%, before dividends and share repurchases.
• Record annual pre-tax underwriting income of $1.1 billion and net income of $1.8 billion.
• Gross and net premiums written grew 9.6% and 9.3% to records of $14.2 billion and $12.0 billion, respectively.
• Average rate increases excluding workers' compensation were approximately 7.9%.
• Net investment income grew 26.6% to a record of $1.3 billion.
• Operating cash flow increased 25.6% to a record of $3.7 billion.
• Total capital returned to shareholders was $835.6 million, consisting of $412.3 million of special dividends, $303.7 million of share repurchases and $119.6 million of regular dividends.

The Company commented:

The Company once again set new financial records in 2024. Full year results were highlighted by record net income, with outstanding underwriting performance and net investment income, culminating in a 23.6% return on beginning of year equity. Growth in book value per share was 23.5%, before $836 million of capital returned to shareholders through special and ordinary dividends and share repurchases.

In the fourth quarter, we delivered an outstanding 30.9% annualized return on beginning of year equity. Our thoughtful growth strategy remains focused on achieving superior long-term risk-adjusted returns. Our decentralized structure remains a key competitive advantage, enabling us to effectively manage risks and capitalize on opportunities in a market where business lines increasingly operate independently. Our calendar year combined ratio of 90.2% once again demonstrated our focus on managing volatility.

We positioned our investment portfolio well for changes in the environment, which resulted in robust growth in net investment income from our fixed-maturity portfolio and a strong contribution to total return from net unrealized gains on our equity portfolio. Current reinvestment rates continue to exceed our annual book yield, and our invested assets have increased from record operating cash flow, positioning us for further investment income growth in 2025.

The Company excelled by most business measures in 2024, and we anticipate ongoing success for our shareholders in 2025. The current property and casualty (re)insurance and investment environments remain favorable to our business model. We are confident in our ability to deliver superior long-term risk-adjusted returns and enhanced shareholder value in 2025 and beyond.

Webcast Conference Call

The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on January 27, 2025, at 5:00 p.m. eastern time. The conference call will be webcast live on the Company's website at https://ir.berkley.com/events-and-presentations/default.aspx. Please log on early to register. A replay of the webcast will be available on the Company's website approximately two hours after the end of the conference call. Additional financial information can be found on the Company's website at https://ir.berkley.com/investor-relations/financial-information/quarterly-results/default.aspx.

About W. R. Berkley Corporation

Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty business: Insurance and Reinsurance & Monoline Excess.

Forward Looking Information

This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2025 and beyond, are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition, including new entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts, including claims for cyber security-related risks; natural and man-made catastrophic losses, including as a result of terrorist activities; the ongoing effects of the COVID-19 pandemic, or other epidemics and pandemics; the impact of climate change, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response to such conditions, on our results and financial condition; foreign currency and political risks relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019; the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; cyber security breaches of our information technology systems and the information technology systems of our vendors and other third parties, or related processes and systems; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2025 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Consolidated Financial Summary (Amounts in thousands, except per share data)
	Fourth Quarter								Twelve Months
		2024				2023				2024				2023
Revenues:
Net premiums written	$	2,936,750			$	2,719,668			$	11,972,096			$	10,954,467
Change in net unearned premiums		74,151				(5,054	)			(423,611	)			(553,780	)
Net premiums earned		3,010,901				2,714,614				11,548,485				10,400,687
Net investment income		317,438				313,341				1,333,161				1,052,835
Net investment gains:
Net realized and unrealized gains (losses) on investments		151,903				(2,862	)			79,738				47,540
Change in allowance for credit losses on investments		6,623				10,666				37,970				(498	)
Net investment gains		158,526				7,804				117,708				47,042
Revenues from non-insurance businesses		152,706				160,283				528,012				535,508
Insurance service fees		27,352				25,194				108,935				106,485
Other income		645				146				2,451				381
Total Revenues		3,667,568				3,221,382				13,638,752				12,142,938
Expenses:
Loss and loss expenses		1,861,261				1,627,540				7,131,595				6,372,142
Other operating costs and expenses		897,416				906,011				3,602,306				3,363,936
Expenses from non-insurance businesses		148,839				154,754				513,451				524,998
Interest expense		31,751				31,879				126,907				127,459
Total expenses		2,939,267				2,720,184				11,374,259				10,388,535
Income before income tax		728,301				501,198				2,264,493				1,754,403
Income tax expense		(152,958	)			(102,234	)			(509,916	)			(370,557	)
Net Income before noncontrolling interests		575,343				398,964				1,754,577				1,383,846
Noncontrolling interest		758				(1,624	)			1,538				(2,487	)
Net income to common stockholders	$	576,101			$	397,340			$	1,756,115			$	1,381,359
Net income per share (1):
Basic	$	1.45			$	0.98			$	4.39			$	3.40
Diluted	$	1.44			$	0.98			$	4.36			$	3.37
Average shares outstanding (1) (2):
Basic		398,042				403,580				399,734				406,500
Diluted		400,888				406,523				403,224				409,948

(1)		The 2023 per share amounts were restated for comparative purposes to reflect the 3-for-2 common stock split effected on July 10, 2024.
(2)		Basic shares outstanding consist of the weighted average number of common shares outstanding during the period (including shares held in a grantor trust). Diluted shares outstanding consist of the weighted average number of basic and common equivalent shares outstanding during the period.

Business Segment Operating Results (Amounts in thousands, except ratios) (1) (2)
	Fourth Quarter								Twelve Months
		2024				2023				2024			2023
Insurance:
Gross premiums written	$	3,161,104			$	2,874,901			$	12,662,132		$	11,461,094
Net premiums written		2,620,112				2,384,629				10,549,550			9,560,533
Net premiums earned		2,638,481				2,357,349				10,086,308			9,007,376
Pre-tax income		504,460				480,031				1,942,083			1,629,918
Loss ratio		62.2	%			61.0	%			62.8	%		62.3	%
Expense ratio		28.3	%			28.4	%			28.4	%		28.3	%
GAAP Combined ratio		90.5	%			89.4	%			91.2	%		90.6	%
Reinsurance & Monoline Excess:
Gross premiums written	$	336,180			$	357,809			$	1,548,958		$	1,510,912
Net premiums written		316,638				335,039				1,422,546			1,393,934
Net premiums earned		372,420				357,265				1,462,177			1,393,311
Pre-tax income		109,296				132,140				466,595			449,285
Loss ratio		58.9	%			53.0	%			54.7	%		54.3	%
Expense ratio		29.5	%			28.5	%			29.4	%		29.4	%
GAAP Combined ratio		88.4	%			81.5	%			84.1	%		83.7	%
Corporate and Eliminations:
Net investment gains	$	158,526			$	7,804			$	117,708		$	47,042
Interest expense		(31,751	)			(31,879	)			(126,907	)		(127,459	)
Other expenses		(12,230	)			(86,898	)			(134,986	)		(244,383	)
Pre-tax income (loss)		114,545				(110,973	)			(144,185	)		(324,800	)
Consolidated:
Gross premiums written	$	3,497,284			$	3,232,710			$	14,211,090		$	12,972,006
Net premiums written		2,936,750				2,719,668				11,972,096			10,954,467
Net premiums earned		3,010,901				2,714,614				11,548,485			10,400,687
Pre-tax income		728,301				501,198				2,264,493			1,754,403
Loss ratio		61.8	%			60.0	%			61.8	%		61.3	%
Expense ratio		28.4	%			28.4	%			28.5	%		28.4	%
GAAP Combined ratio		90.2	%			88.4	%			90.3	%		89.7	%

(1)		Loss ratio is losses and loss expenses incurred expressed as a percentage of premiums earned. Expense ratio is underwriting expenses expressed as a percentage of premiums earned. GAAP combined ratio is the sum of the loss ratio and the expense ratio.
(2)		Commencing with the first quarter of 2024, the Company reclassified a program management business from the Insurance segment to the Reinsurance & Monoline Excess segment. The reclassified business is a program management business offering support on a nationwide basis for commercial casualty and property program administrators. Reclassifications have been made to the Company's 2023 financial information to conform with this presentation.

Supplemental Information (Amounts in thousands)
	Fourth Quarter								Twelve Months
		2024				2023				2024				2023
Net premiums written:
Other liability	$	1,063,789			$	970,672			$	4,277,085			$	3,837,844
Short-tail lines (1)		581,260				505,975				2,349,615				2,025,320
Auto		384,279				348,253				1,554,299				1,378,425
Workers' compensation		304,431				290,203				1,243,674				1,228,058
Professional liability		286,353				269,526				1,124,877				1,090,886
Total Insurance		2,620,112				2,384,629				10,549,550				9,560,533
Casualty (2)		170,720				201,679				738,242				791,385
Property (2)		105,735				98,074				412,660				354,424
Monoline excess		40,183				35,286				271,643				248,125
Total Reinsurance & Monoline Excess		316,638				335,039				1,422,546				1,393,934
Total	$	2,936,750			$	2,719,668			$	11,972,096			$	10,954,467
Current accident year losses from catastrophes:
Insurance	$	35,645			$	20,440			$	226,576			$	159,848
Reinsurance & Monoline Excess		43,973				11,577				71,046				35,114
Total	$	79,618			$	32,017			$	297,622			$	194,962
Net Investment income:
Core portfolio (3)	$	312,785			$	285,841			$	1,275,079			$	966,723
Investment funds		(12,358	)			11,300				(11,491	)			16,743
Arbitrage trading account		17,011				16,200				69,573				69,369
Total	$	317,438			$	313,341			$	1,333,161			$	1,052,835
Net realized and unrealized gains (losses) on investments:
Net realized losses on investments	$	(11,339	)		$	(27,705	)		$	(41,061	)		$	(22,908	)
Change in unrealized gains on equity securities		163,242				24,843				120,799				70,448
Total	$	151,903			$	(2,862	)		$	79,738			$	47,540
Other operating costs and expenses:
Policy acquisition and insurance operating expenses	$	855,997			$	771,170			$	3,294,902			$	2,954,686
Insurance service expenses		24,331				21,379				90,640				91,714
Net foreign currency (gains) losses		(53,699	)			33,577				(52,376	)			31,799
Other costs and expenses		70,787				79,885				269,140				285,737
Total	$	897,416			$	906,011			$	3,602,306			$	3,363,936
Cash flow from operations	$	810,033			$	698,076			$	3,678,368			$	2,929,238
Reconciliation of net income to operating income:
Net income	$	576,101			$	397,340			$	1,756,115			$	1,381,359
Pre-tax investment gains, net of related expenses		(158,526	)			(7,804	)			(117,708	)			(47,042	)
Income tax expense		35,016				2,217				29,205				10,250
Operating income after-tax (4)	$	452,591			$	391,753			$	1,667,612			$	1,344,567

(1)		Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery, high net worth homeowners and other lines.
(2)		Includes reinsurance casualty and property and certain program management business.
(3)		Core portfolio includes fixed maturity securities, equity securities, cash and cash equivalents, real estate and loans receivable.
(4)		Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses). Net investment gains (losses) are computed net of related expenses, including performance-based compensatory costs associated with realized investment gains. Management believes this measurement provides a useful indicator of trends in the Company’s underlying operations.

Selected Balance Sheet Information (Amounts in thousands, except per share data)
	December 31, 2024			December 31, 2023
Net invested assets (1)	$	29,780,638		$	26,973,703
Total assets		40,567,268			37,202,015
Reserves for losses and loss expenses		20,368,030			18,739,652
Senior notes and other debt		1,831,158			1,827,951
Subordinated debentures		1,009,808			1,009,090
Common stockholders' equity (2)		8,395,111			7,455,431
Common stock outstanding (3) (4)		380,066			384,817
Book value per share (4) (5)		22.09			19.37
Tangible book value per share (4) (5)		21.46			18.72

(1)		Net invested assets include investments, cash and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases, net of related liabilities.
(2)		As of December 31, 2024, reflected in common stockholders' equity are after-tax unrealized investment losses of $517 million and unrealized currency translation losses of $417 million. As of December 31, 2023, reflected in common stockholders' equity are after-tax unrealized investment losses of $586 million and unrealized currency translation losses of $340 million.
(3)		During the year ended December 31, 2024, the Company repurchased 5,702,996 shares of its common stock for $303.7 million. During the three months ended December 31, 2024, the Company repurchased 1,165,867 shares of its common stock for $67.4 million. The number of shares of common stock outstanding excludes shares held in a grantor trust.
(4)		The 2023 per share amounts were restated for comparative purposes to reflect the 3-for-2 common stock split effected on July 10, 2024.
(5)		Book value per share is total common stockholders’ equity divided by the number of common shares outstanding. Tangible book value per share is total common stockholders’ equity excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding.

Investment Portfolio December 31, 2024 (Amounts in thousands, except percentages)
	Carrying Value			Percent of Total
Fixed maturity securities:
United States government and government agencies	$	2,235,341		7.5	%
State and municipal:
Special revenue		1,517,708		5.1	%
State general obligation		307,514		1.0	%
Local general obligation		272,376		0.9	%
Corporate backed		153,574		0.5	%
Pre-refunded		85,592		0.3	%
Total state and municipal		2,336,764		7.8	%
Mortgage-backed securities:
Agency		3,045,639		10.2	%
Commercial		532,282		1.8	%
Residential - Prime		187,806		0.6	%
Residential - Alt A		2,055		0.0	%
Total mortgage-backed securities		3,767,782		12.6	%
Asset-backed securities		3,885,012		13.0	%
Corporate:
Industrial		3,667,199		12.3	%
Financial		3,320,513		11.2	%
Utilities		778,694		2.6	%
Other		651,235		2.2	%
Total corporate		8,417,641		28.3	%
Foreign government		1,755,325		5.9	%
Total fixed maturity securities (1)		22,397,865		75.1	%
Equity securities available for sale:
Common stocks		760,167		2.6	%
Preferred stocks		443,621		1.5	%
Total equity securities available for sale		1,203,788		4.1	%
Cash and cash equivalents (2)		1,891,232		6.4	%
Investment funds		1,468,246		4.9	%
Real estate		1,291,455		4.3	%
Arbitrage trading account		1,122,599		3.8	%
Loans receivable		405,453		1.4	%
Net invested assets	$	29,780,638		100.0	%

(1)		Total fixed maturity securities had an average rating of AA- and an average duration of 2.6 years, including cash and cash equivalents.
(2)		Cash and cash equivalents includes trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.

 

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W. R. Berkley Corporation

Karen A. Horvath

Vice President - External

Financial Communications

(203) 629-3000

Source: W. R. Berkley Corporation

FAQ

What was WRB's return on equity in Q4 2024?

W. R. Berkley reported a return on equity of 30.9% in the fourth quarter of 2024.

How much capital did WRB return to shareholders in 2024?

WRB returned $835.6 million to shareholders in 2024, consisting of $412.3 million in special dividends, $303.7 million in share repurchases, and $119.6 million in regular dividends.

What was WRB's net premium written growth in 2024?

WRB's net premiums written grew 9.3% to $12.0 billion in 2024.

What was WRB's combined ratio for calendar year 2024?

WRB achieved a combined ratio of 90.2% for calendar year 2024.

How much did WRB's net investment income grow in 2024?

WRB's net investment income grew 26.6% to a record of $1.3 billion in 2024.