W. R. Berkley Corporation Reports First Quarter Results

Business Wire
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In This Article:

Net Income Increased 50.4% to $442 Million and Operating Income Increased 53.4% to a Record $423 Million; Return on Equity of 23.7% and Operating Return on Equity of 22.7%

GREENWICH, Conn., April 23, 2024--(BUSINESS WIRE)--W. R. Berkley Corporation (NYSE: WRB) today reported its first quarter 2024 results.

Summary Financial Data

(Amounts in thousands, except per share data)

 

 

First Quarter

 

2024

 

2023

 

 

 

 

Gross premiums written

$

3,362,755

 

 

$

3,049,317

 

Net premiums written

 

2,851,291

 

 

 

2,574,824

 

 

 

 

 

Net income to common stockholders

 

442,471

 

 

 

294,126

 

Net income per diluted share

 

1.64

 

 

 

1.06

 

 

 

 

 

Operating income (1)

 

423,324

 

 

 

275,966

 

Operating income per diluted share

 

1.56

 

 

 

1.00

 

 

 

 

 

Return on equity (2)

 

23.7

%

 

 

17.4

%

Operating return on equity (1) (2)

 

22.7

%

 

 

16.4

%

(1)

Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains and related expenses.

(2)

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.

First quarter highlights included:

  • Return on equity and operating return on equity of 23.7% and 22.7%, respectively.

  • Net investment income grew 43.2% to a record $319.8 million.

  • Record net premiums written grew 10.7% to $2.9 billion.

  • The current accident year combined ratio before catastrophe losses of 1.1 loss ratio points was 87.7%.

  • The reported combined ratio was 88.8%, including current accident year catastrophe losses of $30.5 million.

  • Pre-tax underwriting income grew 31.8% to $309.0 million.

  • Average rate increases excluding workers' compensation were approximately 7.8%.

  • Operating cash flow increased 67.6% to $746.2 million.

The Company commented:

The Company continued to have very strong results in the first quarter 2024, with a 23.7% annualized return on beginning of year common stockholders’ equity.

Growth in first quarter net premiums written accelerated year over year to 10.7%, as market conditions remained favorable in many areas of our business. Our combined ratio was 88.8% even as we continued our prudent view of loss trends. Our flexibility to expand or contract each of our businesses according to specific market conditions continues to be a competitive advantage.

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