W. R. Berkley Corporation Reports Third Quarter Results
W. R. Berkley (NYSE: WRB) reported record third quarter results for 2024, with net income increasing to $366 million. Key highlights include:
- Return on equity of 19.6% and operating return on equity of 20.0%
- Net investment income grew 19.5% to $323.8 million compared to the prior year
- Combined ratio of 90.9%, with catastrophe losses contributing 3.3 loss ratio points
- Average rate increases excluding workers' compensation were approximately 8.4%
- Book value per share grew 10.0%, before dividends and share repurchases
- Total capital returned to shareholders was $138.3 million
- Record operating cash flow increased 15.2% to $1.2 billion
The company attributes its success to strong underwriting margins, increasing investment income, and a flexible approach to market risks and opportunities.
W. R. Berkley (NYSE: WRB) ha riportato risultati record per il terzo trimestre del 2024, con un reddito netto aumentato a 366 milioni di dollari. I punti salienti includono:
- Ritorno sul capitale del 19,6% e ritorno operativo sul capitale del 20,0%
- Reddito netto da investimenti aumentato del 19,5% a 323,8 milioni di dollari rispetto all'anno precedente
- Rapporto combinato del 90,9%, con perdite da catastrofi che contribuiscono con 3,3 punti al rapporto di perdite
- Aumenti medi delle tariffe esclusa la copertura per infortuni sul lavoro, circa 8,4%
- Valore contabile per azione aumentato del 10,0%, prima dei dividendi e del riacquisto di azioni
- Capitale totale restituito agli azionisti pari a 138,3 milioni di dollari
- Flussi di cassa operativi record aumentati del 15,2% a 1,2 miliardi di dollari
L'azienda attribuisce il suo successo a margini di sottoscrizione solidi, un incremento del reddito da investimenti e un approccio flessibile ai rischi e alle opportunità di mercato.
W. R. Berkley (NYSE: WRB) reportó resultados récord para el tercer trimestre de 2024, con un ingreso neto que aumentó a 366 millones de dólares. Los aspectos destacados incluyen:
- Retorno sobre el capital del 19,6% y retorno operativo sobre el capital del 20,0%
- Ingreso neto por inversiones creció un 19,5% a 323,8 millones de dólares en comparación con el año anterior
- Ratio combinado del 90,9%, con pérdidas por catástrofes que contribuyen con 3,3 puntos al ratio de pérdidas
- Aumentos de tarifas promedio excluyendo la compensación de trabajadores, aproximadamente 8,4%
- Valor contable por acción creció un 10,0%, antes de dividendos y recompra de acciones
- Capital total devuelto a los accionistas fue de 138,3 millones de dólares
- Flujo de caja operativo récord aumentó un 15,2% a 1,2 mil millones de dólares
La compañía atribuye su éxito a márgenes de suscripción sólidos, incremento de ingresos por inversiones y un enfoque flexible ante riesgos y oportunidades del mercado.
W. R. Berkley (NYSE: WRB)는 2024년 3분기 역대 최고 실적을 보고하며, 순이익이 3억 6천 6백만 달러로 증가했습니다. 주요 하이라이트는 다음과 같습니다:
- 자기자본이익률 19.6% 및 운영자본이익률 20.0%
- 순투자수익이 전년 대비 19.5% 증가하여 3억 2천 3백 8십만 달러에 달했습니다.
- 결합 비율 90.9%, 자연재해 손실이 3.3포인트에 기여했습니다.
- 평균 요율 인상은 산재 제외 약 8.4%였습니다.
- 주당 장부가치가 배당금 및 자사주 매입 전 10.0% 증가했습니다.
- 주주들에게 반환된 총 자본이 1억 3천 8백 30만 달러였습니다.
- 기록적인 운영 현금 흐름이 15.2% 증가하여 12억 달러에 달했습니다.
회사는 강력한 언더라이팅 마진, 증가하는 투자 수익 및 시장 위험과 기회에 대한 유연한 접근을 통해 성공을 거두었다고 설명했습니다.
W. R. Berkley (NYSE: WRB) a annoncé des résultats records pour le troisième trimestre de 2024, avec un revenu net en hausse à 366 millions de dollars. Les points clés incluent :
- Rendement des capitaux propres de 19,6 % et rendement opérationnel des capitaux propres de 20,0 %
- Revenu net d'investissement en hausse de 19,5 % à 323,8 millions de dollars par rapport à l'année précédente
- Ratio combiné de 90,9 %, avec des pertes liées aux catastrophes contribuant pour 3,3 points au ratio de pertes
- Augmentations de tarif moyennes hors indemnisation des travailleurs d'environ 8,4 %
- Valeur comptable par action en hausse de 10,0 %, avant dividendes et rachats d'actions
- Capital total retourné aux actionnaires de 138,3 millions de dollars
- Flux de trésorerie opérationnel record en hausse de 15,2 % à 1,2 milliard de dollars
L'entreprise attribue son succès à des marges de souscription solides, une augmentation des revenus d'investissement et une approche flexible face aux risques et opportunités du marché.
W. R. Berkley (NYSE: WRB) hat Rekordergebnisse für das dritte Quartal 2024 gemeldet, mit einem Nettogewinn von 366 Millionen Dollar. Die wichtigsten Punkte sind:
- Eigenkapitalrendite von 19,6% und operative Eigenkapitalrendite von 20,0%
- Nettoprofite aus Investitionen stiegen um 19,5% auf 323,8 Millionen Dollar im Vergleich zum Vorjahr
- Kombinierter Satz von 90,9%, wobei Katastrophenverluste 3,3 Verlustpunkte beitrugen
- Durchschnittliche Tarifsteigerungen ohne Arbeitnehmerentschädigung betrugen etwa 8,4%
- Buchwert pro Aktie stieg um 10,0%, vor Dividenden und Aktienrückkäufen
- Insgesamt an die Aktionäre zurückgegebener Kapitalbetrag betrug 138,3 Millionen Dollar
- Rekord betriebener Cashflow stieg um 15,2% auf 1,2 Milliarden Dollar
Das Unternehmen führt seinen Erfolg auf starke Underwriting-Margen, steigende Investitionserträge und einen flexiblen Ansatz bei Markt-Risiken und -Chancen zurück.
- Record third quarter net income of $366 million
- Return on equity of 19.6% and operating return on equity of 20.0%
- Net investment income grew 19.5% to $323.8 million
- Combined ratio of 90.9%, demonstrating below average volatility
- Average rate increases of 8.4% excluding workers' compensation
- Book value per share grew 10.0% before dividends and share repurchases
- Record operating cash flow increased 15.2% to $1.2 billion
- $138.3 million returned to shareholders through dividends and share repurchases
- 3.3 loss ratio points attributed to catastrophe losses
Insights
W.R. Berkley's Q3 2024 results demonstrate strong financial performance and operational efficiency. The company reported a 19.6% return on equity and a 20.0% operating return on equity, indicating effective capital management. Net income increased to a record
Net investment income grew impressively by
The company's strong cash flow, which increased
W.R. Berkley's Q3 results underscore its robust position in the commercial lines insurance market. The 90.9% combined ratio is particularly impressive, showcasing the company's underwriting prowess amidst a challenging catastrophe environment. This performance outpaces many peers and reflects W.R. Berkley's risk management acumen.
The
W.R. Berkley's decentralized structure appears to be a competitive advantage, allowing for agility in responding to market opportunities. This approach, combined with the company's focus on risk-adjusted returns, positions it well to capitalize on emerging trends in the commercial insurance space. The continued growth in net investment income also provides a buffer against potential underwriting volatility, enhancing overall financial stability.
Return on Equity of
Record Third Quarter Net Income Increased to
Summary Financial Data (Amounts in thousands, except per share data) |
|||||||||||||||
|
Third Quarter |
|
Nine Months |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Gross premiums written |
$ |
3,633,278 |
|
|
$ |
3,353,205 |
|
|
$ |
10,713,806 |
|
|
$ |
9,739,296 |
|
Net premiums written |
|
3,057,276 |
|
|
|
2,848,459 |
|
|
|
9,035,346 |
|
|
|
8,234,799 |
|
|
|
|
|
|
|
|
|
||||||||
Net income to common stockholders |
|
365,634 |
|
|
|
333,586 |
|
|
|
1,180,014 |
|
|
|
984,020 |
|
Net income per diluted share (1) |
|
0.91 |
|
|
|
0.82 |
|
|
|
2.92 |
|
|
|
2.39 |
|
|
|
|
|
|
|
|
|
||||||||
Operating income (2) |
|
373,677 |
|
|
|
366,608 |
|
|
|
1,215,022 |
|
|
|
952,868 |
|
Operating income per diluted share (1) |
|
0.93 |
|
|
|
0.90 |
|
|
|
3.01 |
|
|
|
2.32 |
|
|
|
|
|
|
|
|
|
||||||||
Return on equity (3) |
|
19.6 |
% |
|
|
19.8 |
% |
|
|
21.1 |
% |
|
|
19.4 |
% |
Operating return on equity (2) (3) |
|
20.0 |
% |
|
|
21.7 |
% |
|
|
21.7 |
% |
|
|
18.8 |
% |
(1) |
The 2024 per share amounts have been adjusted to reflect the 3-for-2 common stock split effected on July 10, 2024, and the 2023 per share amounts were restated for comparative purposes to reflect such common stock split. |
|
(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. |
Third quarter highlights included:
-
Return on equity and operating return on equity of
19.6% and20.0% , respectively. -
Net investment income grew
19.5% to compared to the prior year.$323.8 million -
The current accident year combined ratio before catastrophe losses of 3.3 loss ratio points was
87.6% , and the reported combined ratio was90.9% . -
Average rate increases excluding workers' compensation were approximately
8.4% . -
Book value per share grew
10.0% , before dividends and share repurchases. -
Total capital returned to shareholders was
, consisting of$138.3 million of special dividends,$95.3 million of regular dividends and$30.5 million of share repurchases.$12.5 million -
Record operating cash flow increased
15.2% to .$1.2 billion
The Company commented:
The Company reported record third quarter net income in 2024. Continued strong underwriting margins and increasing investment income drove our
We continue to grow thoughtfully by focusing on business we expect to achieve or exceed our targeted risk-adjusted return, being ever mindful of rate adequacy, loss trend, and exposure management. Our
Net investment income increased
Our success in navigating a wide variety of underwriting and investment environments has resulted in best-in-class returns on equity and below-average volatility that has generated significant shareholder value over many years. Fueled by knowledge and expertise, our decentralized structure allows us to take a flexible, proactive, and innovative approach to whatever risks and opportunities the market may present. We expect to continue to deliver outstanding risk-adjusted returns to our shareholders for the remainder of 2024 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 October 21, 2024, 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
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 2024 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 2024 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) |
|||||||||||||||
|
Third Quarter |
|
Nine Months |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues: |
|
|
|
|
|
|
|
||||||||
Net premiums written |
$ |
3,057,276 |
|
|
$ |
2,848,459 |
|
|
$ |
9,035,346 |
|
|
$ |
8,234,799 |
|
Change in unearned premiums |
|
(130,453 |
) |
|
|
(206,545 |
) |
|
|
(497,761 |
) |
|
|
(548,726 |
) |
Net premiums earned |
|
2,926,823 |
|
|
|
2,641,914 |
|
|
|
8,537,585 |
|
|
|
7,686,073 |
|
Net investment income |
|
323,756 |
|
|
|
270,944 |
|
|
|
1,015,723 |
|
|
|
739,494 |
|
Net investment (losses) gains: |
|
|
|
|
|
|
|
||||||||
Net realized and unrealized (losses) gains on investments |
|
(23,362 |
) |
|
|
(40,855 |
) |
|
|
(72,165 |
) |
|
|
50,403 |
|
Change in allowance for credit losses on investments |
|
15,276 |
|
|
|
(1,571 |
) |
|
|
31,347 |
|
|
|
(11,164 |
) |
Net investment (losses) gains |
|
(8,086 |
) |
|
|
(42,426 |
) |
|
|
(40,818 |
) |
|
|
39,239 |
|
Revenues from non-insurance businesses |
|
128,610 |
|
|
|
137,116 |
|
|
|
375,307 |
|
|
|
375,225 |
|
Insurance service fees |
|
28,666 |
|
|
|
22,962 |
|
|
|
81,583 |
|
|
|
81,290 |
|
Other income |
|
610 |
|
|
|
128 |
|
|
|
1,804 |
|
|
|
235 |
|
Total Revenues |
|
3,400,379 |
|
|
|
3,030,638 |
|
|
|
9,971,184 |
|
|
|
8,921,556 |
|
Expenses: |
|
|
|
|
|
|
|
||||||||
Loss and loss expenses |
|
1,825,960 |
|
|
|
1,636,193 |
|
|
|
5,270,334 |
|
|
|
4,744,602 |
|
Other operating costs and expenses |
|
943,365 |
|
|
|
808,669 |
|
|
|
2,704,890 |
|
|
|
2,457,925 |
|
Expenses from non-insurance businesses |
|
124,885 |
|
|
|
133,939 |
|
|
|
364,612 |
|
|
|
370,244 |
|
Interest expense |
|
31,720 |
|
|
|
31,888 |
|
|
|
95,156 |
|
|
|
95,580 |
|
Total expenses |
|
2,925,930 |
|
|
|
2,610,689 |
|
|
|
8,434,992 |
|
|
|
7,668,351 |
|
Income before income tax |
|
474,449 |
|
|
|
419,949 |
|
|
|
1,536,192 |
|
|
|
1,253,205 |
|
Income tax expense |
|
(109,135 |
) |
|
|
(86,519 |
) |
|
|
(356,958 |
) |
|
|
(268,322 |
) |
Net Income before noncontrolling interests |
|
365,314 |
|
|
|
333,430 |
|
|
|
1,179,234 |
|
|
|
984,883 |
|
Noncontrolling interest |
|
320 |
|
|
|
156 |
|
|
|
780 |
|
|
|
(863 |
) |
Net income to common stockholders |
$ |
365,634 |
|
|
$ |
333,586 |
|
|
$ |
1,180,014 |
|
|
$ |
984,020 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per share (1): |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.92 |
|
|
$ |
0.83 |
|
|
$ |
2.95 |
|
|
$ |
2.41 |
|
Diluted |
$ |
0.91 |
|
|
$ |
0.82 |
|
|
$ |
2.92 |
|
|
$ |
2.39 |
|
|
|
|
|
|
|
|
|
||||||||
Average shares outstanding (1) (2): |
|
|
|
|
|
|
|
||||||||
Basic |
|
398,338 |
|
|
|
403,787 |
|
|
|
400,302 |
|
|
|
407,484 |
|
Diluted |
|
401,817 |
|
|
|
407,158 |
|
|
|
404,053 |
|
|
|
411,219 |
|
(1) |
The 2024 per share amounts have been adjusted to reflect the 3-for-2 common stock split effected on July 10, 2024, and the 2023 per share amounts were restated for comparative purposes to reflect such common stock split. |
|
(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) |
|||||||||||||||
|
Third Quarter |
|
Nine Months |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Insurance: |
|
|
|
|
|
|
|||||||||
Gross premiums written |
$ |
3,219,128 |
|
|
$ |
2,965,787 |
|
|
$ |
9,501,027 |
|
$ |
8,586,193 |
|
|
Net premiums written |
|
2,673,275 |
|
|
|
2,484,626 |
|
|
|
7,929,439 |
|
|
7,175,904 |
|
|
Net premiums earned |
|
2,564,490 |
|
|
|
2,291,917 |
|
|
|
7,447,828 |
|
|
6,650,027 |
|
|
Pre-tax income |
|
469,421 |
|
|
|
410,909 |
|
|
|
1,437,623 |
|
|
1,149,886 |
|
|
Loss ratio |
|
63.1 |
% |
|
|
62.8 |
% |
|
|
63.0 |
% |
|
62.8 |
% |
|
Expense ratio |
|
28.4 |
% |
|
|
28.2 |
% |
|
|
28.4 |
% |
|
28.2 |
% |
|
GAAP Combined ratio |
|
91.5 |
% |
|
|
91.0 |
% |
|
|
91.4 |
% |
|
91.0 |
% |
|
|
|
|
|
|
|
|
|||||||||
Reinsurance & Monoline Excess: |
|
|
|
|
|
|
|||||||||
Gross premiums written |
$ |
414,150 |
|
|
$ |
387,418 |
|
|
$ |
1,212,779 |
|
$ |
1,153,103 |
|
|
Net premiums written |
|
384,001 |
|
|
|
363,833 |
|
|
|
1,105,907 |
|
|
1,058,895 |
|
|
Net premiums earned |
|
362,333 |
|
|
|
349,997 |
|
|
|
1,089,757 |
|
|
1,036,046 |
|
|
Pre-tax income |
|
105,225 |
|
|
|
110,442 |
|
|
|
357,299 |
|
|
317,146 |
|
|
Loss ratio |
|
57.0 |
% |
|
|
56.5 |
% |
|
|
53.2 |
% |
|
54.8 |
% |
|
Expense ratio |
|
29.7 |
% |
|
|
28.8 |
% |
|
|
29.5 |
% |
|
29.6 |
% |
|
GAAP Combined ratio |
|
86.7 |
% |
|
|
85.3 |
% |
|
|
82.7 |
% |
|
84.4 |
% |
|
|
|
|
|
|
|
|
|||||||||
Corporate and Eliminations: |
|
|
|
|
|
|
|||||||||
Net investment (losses) gains |
$ |
(8,086 |
) |
|
$ |
(42,426 |
) |
|
$ |
(40,818 |
) |
$ |
39,239 |
|
|
Interest expense |
|
(31,720 |
) |
|
|
(31,888 |
) |
|
|
(95,156 |
) |
|
(95,580 |
) |
|
Other expenses |
|
(60,391 |
) |
|
|
(27,088 |
) |
|
|
(122,756 |
) |
|
(157,486 |
) |
|
Pre-tax loss |
|
(100,197 |
) |
|
|
(101,402 |
) |
|
|
(258,730 |
) |
|
(213,827 |
) |
|
|
|
|
|
|
|
|
|||||||||
Consolidated: |
|
|
|
|
|
|
|||||||||
Gross premiums written |
$ |
3,633,278 |
|
|
$ |
3,353,205 |
|
|
$ |
10,713,806 |
|
$ |
9,739,296 |
|
|
Net premiums written |
|
3,057,276 |
|
|
|
2,848,459 |
|
|
|
9,035,346 |
|
|
8,234,799 |
|
|
Net premiums earned |
|
2,926,823 |
|
|
|
2,641,914 |
|
|
|
8,537,585 |
|
|
7,686,073 |
|
|
Pre-tax income |
|
474,449 |
|
|
|
419,949 |
|
|
|
1,536,192 |
|
|
1,253,205 |
|
|
Loss ratio |
|
62.4 |
% |
|
|
61.9 |
% |
|
|
61.7 |
% |
|
61.7 |
% |
|
Expense ratio |
|
28.5 |
% |
|
|
28.3 |
% |
|
|
28.6 |
% |
|
28.4 |
% |
|
GAAP Combined ratio |
|
90.9 |
% |
|
|
90.2 |
% |
|
|
90.3 |
% |
|
90.1 |
% |
(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) |
|||||||||||||||
|
Third Quarter |
|
Nine Months |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net premiums written: |
|
|
|
|
|
|
|
||||||||
Other liability |
$ |
1,066,005 |
|
|
$ |
978,193 |
|
|
$ |
3,213,296 |
|
|
$ |
2,867,172 |
|
Short-tail lines (1) |
|
592,913 |
|
|
|
534,567 |
|
|
|
1,768,355 |
|
|
|
1,519,345 |
|
Auto |
|
413,260 |
|
|
|
383,730 |
|
|
|
1,170,020 |
|
|
|
1,030,172 |
|
Workers' compensation |
|
302,179 |
|
|
|
302,701 |
|
|
|
939,243 |
|
|
|
937,854 |
|
Professional liability |
|
298,918 |
|
|
|
285,435 |
|
|
|
838,525 |
|
|
|
821,361 |
|
Total Insurance |
|
2,673,275 |
|
|
|
2,484,626 |
|
|
|
7,929,439 |
|
|
|
7,175,904 |
|
Casualty (2) |
|
189,386 |
|
|
|
188,445 |
|
|
|
567,522 |
|
|
|
589,706 |
|
Property (2) |
|
106,106 |
|
|
|
92,171 |
|
|
|
306,925 |
|
|
|
256,350 |
|
Monoline excess |
|
88,509 |
|
|
|
83,217 |
|
|
|
231,460 |
|
|
|
212,839 |
|
Total Reinsurance & Monoline Excess |
|
384,001 |
|
|
|
363,833 |
|
|
|
1,105,907 |
|
|
|
1,058,895 |
|
Total |
$ |
3,057,276 |
|
|
$ |
2,848,459 |
|
|
$ |
9,035,346 |
|
|
$ |
8,234,799 |
|
|
|
|
|
|
|
|
|
||||||||
Current accident year losses from catastrophes: |
|
|
|
|
|||||||||||
Insurance |
$ |
76,848 |
|
|
$ |
46,160 |
|
|
$ |
190,931 |
|
|
$ |
139,409 |
|
Reinsurance & Monoline Excess |
|
20,970 |
|
|
|
15,369 |
|
|
|
27,073 |
|
|
|
23,536 |
|
Total |
$ |
97,818 |
|
|
$ |
61,529 |
|
|
$ |
218,004 |
|
|
$ |
162,945 |
|
|
|
|
|
|
|
|
|
||||||||
Net Investment income: |
|
|
|
|
|
|
|
||||||||
Core portfolio (3) |
$ |
301,146 |
|
|
$ |
248,618 |
|
|
$ |
962,293 |
|
|
$ |
680,883 |
|
Investment funds |
|
4,741 |
|
|
|
4,450 |
|
|
|
868 |
|
|
|
5,443 |
|
Arbitrage trading account |
|
17,869 |
|
|
|
17,876 |
|
|
|
52,562 |
|
|
|
53,168 |
|
Total |
$ |
323,756 |
|
|
$ |
270,944 |
|
|
$ |
1,015,723 |
|
|
$ |
739,494 |
|
|
|
|
|
|
|
|
|
||||||||
Net realized and unrealized (losses) gains on investments: |
|
|
|
|
|
|
|
||||||||
Net realized (losses) gains on investments |
$ |
(21,825 |
) |
|
$ |
(21,796 |
) |
|
$ |
(29,723 |
) |
|
$ |
4,798 |
|
Change in unrealized (losses) gains on equity securities |
|
(1,537 |
) |
|
|
(19,059 |
) |
|
|
(42,442 |
) |
|
|
45,605 |
|
Total |
$ |
(23,362 |
) |
|
$ |
(40,855 |
) |
|
$ |
(72,165 |
) |
|
$ |
50,403 |
|
|
|
|
|
|
|
|
|
||||||||
Other operating costs and expenses: |
|
|
|
|
|
|
|
||||||||
Policy acquisition and insurance operating expenses |
$ |
835,376 |
|
|
$ |
747,007 |
|
|
$ |
2,438,905 |
|
|
$ |
2,183,517 |
|
Insurance service expenses |
|
21,786 |
|
|
|
21,225 |
|
|
|
66,309 |
|
|
|
70,336 |
|
Net foreign currency losses (gains) |
|
24,619 |
|
|
|
(22,498 |
) |
|
|
1,324 |
|
|
|
(1,777 |
) |
Other costs and expenses |
|
61,584 |
|
|
|
62,935 |
|
|
|
198,352 |
|
|
|
205,849 |
|
Total |
$ |
943,365 |
|
|
$ |
808,669 |
|
|
$ |
2,704,890 |
|
|
$ |
2,457,925 |
|
|
|
|
|
|
|
|
|
||||||||
Cash flow from operations |
$ |
1,240,770 |
|
|
$ |
1,077,093 |
|
|
$ |
2,868,335 |
|
|
$ |
2,231,162 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income to operating income: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
365,634 |
|
|
$ |
333,586 |
|
|
$ |
1,180,014 |
|
|
$ |
984,020 |
|
Pre-tax investment losses (gains), net of related expenses |
|
8,086 |
|
|
|
42,426 |
|
|
|
40,818 |
|
|
|
(39,170 |
) |
Income tax (benefit) expense |
|
(43 |
) |
|
|
(9,404 |
) |
|
|
(5,810 |
) |
|
|
8,018 |
|
Operating income after-tax (4) |
$ |
373,677 |
|
|
$ |
366,608 |
|
|
$ |
1,215,022 |
|
|
$ |
952,868 |
|
(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) |
|||||
|
September 30, 2024 |
|
December 31, 2023 |
||
|
|
|
|
||
Net invested assets (1) |
$ |
29,689,477 |
|
$ |
26,973,703 |
Total assets |
|
40,359,298 |
|
|
37,111,830 |
Reserves for losses and loss expenses |
|
20,155,310 |
|
|
18,739,652 |
Senior notes and other debt |
|
1,827,788 |
|
|
1,827,951 |
Subordinated debentures |
|
1,009,629 |
|
|
1,009,090 |
Common stockholders' equity (2) |
|
8,426,264 |
|
|
7,455,431 |
Common stock outstanding (3) (4) |
|
381,190 |
|
|
384,817 |
Book value per share (4) (5) |
|
22.11 |
|
|
19.37 |
Tangible book value per share (4) (5) |
|
21.47 |
|
|
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 September 30, 2024, reflected in common stockholders' equity are after-tax unrealized investment losses of |
|
(3) |
During the nine months ended September 30, 2024, the Company repurchased 4,537,130 shares of its common stock for |
|
(4) |
The 2024 per share amounts have been adjusted to reflect the 3-for-2 common stock split effected on July 10, 2024, and the 2023 per share amounts were restated for comparative purposes to reflect such common stock split. |
|
(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 September 30, 2024 (Amounts in thousands, except percentages) |
|||||
|
Carrying Value |
|
Percent of Total |
||
Fixed maturity securities: |
|
|
|
||
|
$ |
2,070,985 |
|
7.0 |
% |
State and municipal: |
|
|
|
||
Special revenue |
|
1,689,758 |
|
5.7 |
% |
State general obligation |
|
311,953 |
|
1.0 |
% |
Local general obligation |
|
304,114 |
|
1.0 |
% |
Corporate backed |
|
165,155 |
|
0.6 |
% |
Pre-refunded |
|
86,853 |
|
0.3 |
% |
Total state and municipal |
|
2,557,833 |
|
8.6 |
% |
Mortgage-backed securities: |
|
|
|
||
Agency |
|
2,424,228 |
|
8.2 |
% |
Commercial |
|
600,881 |
|
2.0 |
% |
Residential - Prime |
|
212,909 |
|
0.7 |
% |
Residential - Alt A |
|
2,352 |
|
0.0 |
% |
Total mortgage-backed securities |
|
3,240,370 |
|
10.9 |
% |
Asset-backed securities |
|
4,107,321 |
|
13.8 |
% |
Corporate: |
|
|
|
||
Industrial |
|
3,954,408 |
|
13.3 |
% |
Financial |
|
3,348,562 |
|
11.3 |
% |
Utilities |
|
774,398 |
|
2.6 |
% |
Other |
|
775,396 |
|
2.6 |
% |
Total corporate |
|
8,852,764 |
|
29.8 |
% |
Foreign government |
|
1,834,605 |
|
6.2 |
% |
Total fixed maturity securities (1) |
|
22,663,878 |
|
76.3 |
% |
Equity securities available for sale: |
|
|
|
||
Common stocks |
|
701,667 |
|
2.3 |
% |
Preferred stocks |
|
346,459 |
|
1.2 |
% |
Total equity securities available for sale |
|
1,048,126 |
|
3.5 |
% |
Cash and cash equivalents (2) |
|
1,861,981 |
|
6.3 |
% |
Investment funds |
|
1,607,381 |
|
5.4 |
% |
Real estate |
|
1,297,314 |
|
4.4 |
% |
Arbitrage trading account |
|
820,928 |
|
2.8 |
% |
Loans receivable |
|
389,869 |
|
1.3 |
% |
Net invested assets |
$ |
29,689,477 |
|
100.0 |
% |
(1) |
Total fixed maturity securities had an average rating of AA- and an average duration of 2.4 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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241021586786/en/
Karen A. Horvath
Vice President - External
Financial Communications
(203) 629-3000
Source: W. R. Berkley Corporation
FAQ
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