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WRB · W. R. Berkley

32 filings

10-K

WRB 10-K Annual Reports

W. R. Berkley - 32 annual reports

Filing record · 2016–202610-K1110-Q338-K96

2025
W. R. Berkley Annual Report, Year Ended Dec 31, 2025
W. R. Berkley Corporation is an insurance holding company and one of the largest commercial lines writers in the United States, operating in two segments: Insurance and Reinsurance & Monoline Excess. For 2025, net income to common stockholders was $1,779 million ($4.45 per diluted share), up from $1,756 million in 2024. Total revenues rose to $14.71 billion from $13.64 billion, and gross premiums written grew 6% to $15.11 billion. The consolidated GAAP combined ratio was 90.7% in 2025 compared with 90.3% in 2024, with the Insurance segment at 91.7% and Reinsurance & Monoline Excess at 83.7%. Net investment income rose 7% to $1.43 billion, supported by a larger portfolio and a 4.5% earned yield. Balance sheet strength improved over the year. Total equity reached $9.71 billion and total assets $44.07 billion, with reserves for losses and loss expenses of $22.21 billion gross and $18.95 billion net. Shareholders received $700 million in dividends in 2025, including special dividends of $0.50 and $1.00 per share, and the company repurchased $270 million of stock. The filing notes that the lead insurer's statutory capital and surplus was $9.86 billion. Prior-year reserve development was nearly neutral, with $3 million net favorable in 2025, though the Insurance segment recorded $44 million of adverse development driven by other liability and auto liability lines, which the company attributes partly to social inflation. Key risks cited include cyclical pricing, with average renewal rate increases of 6.7% in 2025 and rates moderating or decreasing in some lines, competitive pressure from well-capitalized new entrants, reserve adequacy, catastrophe exposure (current accident year catastrophe losses of $336 million net in 2025), and climate change. Mitsui Sumitomo Insurance owns about 14.7% of common stock as of February 23, 2026, and the Berkley family controls the voting of those shares.
Feb 27, 2026
2024
W. R. Berkley Annual Report, Year Ended Dec 31, 2024
W. R. Berkley Corporation, an insurance holding company among the largest commercial lines writers in the United States, reported net income to common stockholders of $1,756,115 thousand ($1.76 billion) for 2024, compared with $1,381,359 thousand in 2023, and diluted EPS of $4.36 versus $3.37. Total revenues rose to $13.64 billion from $12.14 billion, and gross premiums written grew 10% to $14,211 million. The Insurance segment drove growth, with net premiums written of $10,549,550 thousand and a GAAP combined ratio of 91.2%, while Reinsurance & Monoline Excess posted a combined ratio of 84.1%. Consolidated combined ratio was 90.3% versus 89.7% in 2023, reflecting a higher expense ratio, and catastrophe losses net of reinsurance were $298 million in 2024 (Hurricanes Helene and Milton had the largest impacts). Net investment income increased 27% to $1,333 million, driven by higher interest rates, a larger fixed maturity portfolio, and $204 million of pre-tax investment income from Argentine inflation-linked securities that the company does not expect to continue at that level. Shareholders' equity reached $8.4 billion, with book value per outstanding share of $22.09. The company repurchased 5,702,996 shares for $304 million and paid total dividends of $532 million, including special dividends of $0.33, $0.25 and $0.50 per share. The company also effected a 3-for-2 stock split in July 2024. The filing shows net reserves for losses and loss expenses of $17.2 billion, with net prior year development favorable by $4 million in 2024 after adverse development of $19 million in 2023. The Insurance segment's adverse development was driven by commercial auto liability and other liability occurrence lines, attributed by management to social inflation. Maximum dividends payable without regulatory approval in 2025 are approximately $1.6 billion.
Feb 24, 2025
2023
W. R. Berkley Annual Report, Year Ended Dec 31, 2023
W. R. Berkley Corporation is an insurance holding company and one of the largest commercial lines writers in the United States, operating in two segments: Insurance and Reinsurance & Monoline Excess. In 2023 net premiums written rose to $10.95 billion from $10.00 billion in 2022, and net premiums earned reached $10.40 billion. The Insurance segment's GAAP combined ratio was 90.7% and the Reinsurance & Monoline Excess segment's was 82.1%, yielding a consolidated GAAP combined ratio of 89.7%, compared with 89.3% in 2022. Net income to common stockholders was $1.381 billion in both 2023 and 2022, while diluted earnings per share rose to $5.05 from $4.94, reflecting fewer weighted average diluted shares. Net investment income increased 35% to $1.05 billion, driven mainly by higher yields on fixed maturity securities (4.4% average annualized yield versus 2.9% in 2022) and a larger portfolio. Total investments were $26.64 billion at December 31, 2023, with 75.8% in fixed maturity securities, and the fixed maturity portfolio's effective duration was 2.4 years. Stockholders' equity reached $7.46 billion. The company repurchased shares for $537 million and paid $501 million in dividends, including special dividends of $0.50 per share in three quarters of 2023. The filing also flags risks that bear on investors: net unfavorable prior-year reserve development of $19 million in 2023, including adverse development in general liability and commercial auto liability for accident years 2016 through 2019 that management attributes partly to social inflation. Gross loss reserves were $18.74 billion, and the company had recorded about $384 million in COVID-19-related losses. Catastrophe losses net of reinsurance were $195 million in 2023. A subsidiary also filed a lawsuit in December 2023 against certain reinsurers to recover more than $90 million in event cancellation losses.
Feb 23, 2024
2022
W. R. Berkley Annual Report, Year Ended Dec 31, 2022
W. R. Berkley Corporation is an insurance holding company and one of the largest commercial lines writers in the United States, operating in two segments: Insurance and Reinsurance & Monoline Excess. In 2022, net premiums written rose to $10.00 billion from $8.86 billion in 2021, and net income to common stockholders increased to $1.38 billion ($4.94 per diluted share) from $1.02 billion ($3.66 per diluted share). The consolidated GAAP combined ratio improved to 89.3% from 89.6%, and the consolidated loss ratio was 61.3% versus 61.1% a year earlier. Net investment income rose to $779 million from $672 million, helped by rising interest rates and a larger fixed maturity portfolio, while a $251 million after-tax gain on the sale of a London office building boosted net investment gains. Gross premiums written grew 11% to $11.91 billion, with average renewal premium rates for insurance and facultative reinsurance up 6.4% in 2022 after 9.1% in 2021. Results were offset by unrealized investment losses: the change in unrealized investment losses was $1.25 billion pre-tax, which pushed accumulated other comprehensive loss to $1.26 billion and total common stockholders' equity to $6.75 billion at year-end. Book value per outstanding share was $25.51. Unfavorable prior-year reserve development of $36 million and COVID-19-related losses of approximately $341 million were also disclosed, with reserves for losses and loss expenses totaling $17.01 billion gross. Capital returns included regular quarterly dividends of $0.09 and $0.10 per share, special dividends of $0.50 per share in the second quarter of 2022, and a $0.50 special dividend declared in January 2023. The company repurchased 1,370,394 shares in 2022 for $94 million, and it had no borrowings under its $300 million revolving credit facility at year-end. Total debt carrying value was $2.84 billion.
Feb 24, 2023
2021
W. R. Berkley Annual Report, Year Ended Dec 31, 2021
W. R. Berkley Corporation is an insurance holding company and one of the largest commercial lines writers in the United States, operating in two segments: Insurance and Reinsurance & Monoline Excess. In 2021 net premiums written rose to $8.86 billion from $7.26 billion in 2020, gross premiums written reached $10.70 billion, and net income to common stockholders was $1.02 billion, or $5.48 per diluted share, versus $531 million ($2.81 per diluted share) in 2020. The consolidated GAAP combined ratio improved to 89.6% from 94.9%, with the loss ratio at 61.1% versus 64.5%, and the company cited higher premium rates and lower catastrophe losses ($202 million in 2021 versus $340 million in 2020). Average renewal premium rates for insurance and facultative reinsurance increased 9.1% in 2021. The balance sheet grew, with total assets of $32.09 billion and total common stockholders' equity of $6.65 billion, and book value per outstanding share of $37.63. Shareholder returns included regular quarterly dividends of $0.12 and $0.13 per share, special dividends of $0.50 and $1.00 per share, and total dividends of $356 million in 2021. Net reserves for losses and loss expenses increased to $12.85 billion, and the fixed maturity portfolio had an effective duration of 2.4 years. The company also reported unfavorable developments on the 2016 through 2019 accident years for the Insurance segment, offset by favorable development on the 2020 accident year, and noted ongoing COVID-19 uncertainty, including about $274 million of recognized COVID-19-related losses net of reinsurance. Subsequent to year end, the company agreed on February 23, 2022 to sell an office building in London known as "The Scalpel" for £718 million, with a pretax gain estimated at more than $300 million in the first quarter of 2022, subject to closing on March 7, 2022.
Feb 24, 2022
2020
W. R. Berkley Annual Report, Year Ended Dec 31, 2020
W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States, operating in two segments: Insurance and Reinsurance & Monoline Excess. For 2020, net premiums written were $7.26 billion, up from $6.86 billion in 2019, and gross premiums written rose 7% to $8.85 billion. Net income to common stockholders was $530.7 million, or $2.81 per diluted share, compared with $681.9 million, or $3.52 per diluted share, in 2019. The filing attributes the $151 million decline mainly to COVID-19-related and other catastrophe losses, lower net investment income from reduced fixed maturity yields, and a higher tax expense from a change in the effective tax rate, which rose to 24.4% from 19.8%. Underwriting results were mixed. The consolidated GAAP combined ratio worsened to 94.9% from 93.8%, driven by the Insurance segment, whose combined ratio rose to 95.2% from 93.5%, while the Reinsurance & Monoline Excess combined ratio improved to 93.1% from 96.5%. Catastrophe losses net of reinsurance were $340 million in 2020, including approximately $171 million of COVID-19-related losses, versus $90 million in 2019. Average renewal premium rates for insurance and facultative reinsurance increased 11.3% in 2020. Net investment income fell 10% to $584 million, and the fixed maturity portfolio's effective duration was 2.4 years at year-end. The balance sheet remained solid, with total stockholders' equity of $6.3 billion and book value per share of $35.49 at December 31, 2020. The company repurchased 6,363,301 shares for $346 million in 2020, paid $84 million in dividends, and issued $300 million of 4.125% subordinated debentures due 2061 in February 2021 after calling $110 million of 5.90% debentures. Cash flow from operations rose to $1.62 billion from $1.14 billion.
Feb 18, 2021
2019
W. R. Berkley Annual Report, Year Ended Dec 31, 2019
W. R. Berkley Corporation, an insurance holding company among the largest commercial lines writers in the United States, reported net income to common stockholders of $681.9 million in 2019, up from $640.7 million in 2018, and diluted EPS of $3.52 versus $3.33. Net premiums written grew to $6.86 billion from $6.43 billion, and gross premiums written rose 7% to $8.26 billion. The company operates two segments, Insurance and Reinsurance & Monoline Excess. The Insurance segment's GAAP combined ratio improved to 93.5% from 95.1%, while the Reinsurance & Monoline Excess combined ratio was 96.5% versus 96.8%. Consolidated combined ratio was 93.8% compared with 95.3% in 2018. Average renewal premium rates for insurance and facultative reinsurance rose 4.8% in 2019, and 6.9% excluding workers' compensation. Investment income declined to $645.6 million from $674.2 million, mainly because investment fund income fell, while the fixed maturity portfolio, which made up 72.6% of total investments, carried an effective duration of 2.8 years. Total revenues were $7.90 billion. Stockholders' equity reached $6.07 billion, or $33.12 per share, up from $29.72. Cash dividends declared rose to $1.73 per share from $1.39, including special dividends of $0.50 and $0.75. Gross reserves for losses and loss expenses were $12.58 billion, with net favorable prior-year development of $19 million. The filing also flags risks including Brexit (the U.K. formally left the EU on January 31, 2020, with a transition period ending December 31, 2020), catastrophe exposure ($90 million net catastrophe losses in 2019), reserve adequacy, competitive pricing pressure, and regulatory changes such as the NAIC group capital tool and the California Consumer Privacy Act. KPMG issued an unqualified opinion on the financial statements and on internal control over financial reporting.
Feb 20, 2020
2018
W. R. Berkley Annual Report, Year Ended Dec 31, 2018
W. R. Berkley Corporation is an insurance holding company and one of the largest commercial lines writers in the United States, operating in two segments: Insurance and Reinsurance. In 2018, net premiums written were $6.43 billion, up from $6.26 billion in 2017, and gross premiums written rose 3% to $7.70 billion. The Insurance segment produced a GAAP combined ratio of 94.3% and the Reinsurance segment 106.4%, for a consolidated combined ratio of 95.3% versus 96.7% in 2017. Net income to common stockholders was $640.7 million, or $5.00 per diluted share, compared with $549.1 million, or $4.26 per diluted share, in 2017. The filing attributes the increase mainly to higher after-tax net investment income, better underwriting income, and a lower tax expense from the reduced federal corporate tax rate, partly offset by lower after-tax net investment gains. The balance sheet remained substantial, with total assets of $24.90 billion, total investments of $17.72 billion, and common stockholders' equity of $5.44 billion, or $44.57 per share. Fixed maturity securities were $13.61 billion, or 73.5% of total investments including cash. Net reserves for losses and loss expenses were $10.25 billion, and the filing notes that favorable prior year development was $39 million in 2018. Senior notes and other debt totaled $1.88 billion, and subordinated debentures $907.5 million. Operating cash flow was $620.2 million in 2018, down from $710.9 million in 2017. Looking ahead, the Board approved a 3-for-2 common stock split on February 21, 2019, payable as a stock dividend with additional shares expected to be issued on April 2, 2019. The company also reported that dividends of $2.09 per share were declared in 2018, including three special dividends of $0.50 each, and that the maximum dividend its lead insurer can pay without regulatory approval in 2019 is approximately $1.1 billion.
Feb 22, 2019
2017
W. R. Berkley Annual Report, Year Ended Dec 31, 2017
W. R. Berkley Corporation is an insurance holding company and one of the largest commercial lines writers in the United States, operating in two property casualty segments: Insurance and Reinsurance. For 2017, net income to common stockholders was $549 million, or $4.26 per diluted share, compared with $602 million, or $4.68 per diluted share, in 2016. Total revenues rose to $7.68 billion from $7.65 billion. The filing attributes the decline in net income mainly to increased catastrophe losses from hurricanes Harvey, Irma and Maria, two earthquakes in Mexico and California wildfires, which totaled $184 million in 2017 versus $105 million in 2016. Net premiums written fell 3% to $6.26 billion, with the Reinsurance segment reporting a GAAP combined ratio of 117.6%, compared with 100.6% in 2016. The Insurance segment remained the core earnings driver, with a combined ratio of 94.5% and pre-tax income of $756 million, while Reinsurance posted a pre-tax loss of $15 million, reflecting catastrophe losses and $31 million of adverse prior-year reserve development tied to U.K. Ogden discount rate changes. Net favorable prior-year reserve development totaled $37 million. The Tax Cuts and Jobs Act produced a net 2017 tax benefit of $20.7 million, which the Company describes as provisional. Total assets were $24.30 billion and common stockholders' equity reached $5.41 billion, or $44.53 per share, up from $41.65 a year earlier. Capital management included $188 million of dividends to common stockholders in 2017, including $0.50 special dividends paid in July and December, and share repurchases of $48 million. Management reports that fixed maturity securities represented 73.6% of total investments, that the portfolio had an effective duration of 3.0 years, and that the Company's insurance subsidiaries face a 2018 dividend capacity without regulatory approval of approximately $699 million.
Feb 23, 2018
2016
W. R. Berkley Annual Report, Year Ended Dec 31, 2016
W. R. Berkley Corporation, an insurance holding company among the largest commercial lines writers in the United States, reported net income to common stockholders of $601.9 million, or $4.68 per diluted share, for 2016, compared with $503.7 million, or $3.87 per diluted share, in 2015. The filing attributes the increase mainly to higher after-tax net investment gains, net investment income and foreign currency gains, partially offset by lower underwriting income. Net premiums written rose 4% to $6.42 billion and net premiums earned rose 4% to $6.29 billion. The consolidated GAAP combined ratio was 94.3% in 2016 versus 93.7% in 2015, and net investment income increased 10% to $564 million, with a 3.4% annualized yield. The company operates in two segments: Insurance (89.9% of 2016 net premiums written) and Reinsurance (10.1%). Insurance's combined ratio was 93.6%, while Reinsurance's rose to 100.6% from 96.6%, driven by a higher expense ratio and loss ratio. Favorable prior-year reserve development was $59 million. Gross reserves for losses and loss expenses reached $11.20 billion, and total investments were $16.65 billion, of which fixed maturity securities were 75.6%. Shareholders' equity per share rose to $41.65 from $37.31. Capital and financing activity included $387 million of new subordinated debentures issued in 2016 (5.9% due 2056 and 5.75% due 2056), a $240 million increase in dividends paid to $184 million including special dividends of $0.50 per share in both the third and fourth quarters, and $132 million of share repurchases. The filing notes that catastrophe losses net of reinsurance were $105 million in 2016, and that management expects continued pricing pressure, as the rate of premium increase declined and accelerated its decline in 2016.
Feb 28, 2017
2015
W. R. Berkley Annual Report, Year Ended Dec 31, 2015
W. R. Berkley Corporation, an insurance holding company among the largest commercial lines writers in the United States, reported net income to common stockholders of $503.7 million in 2015, down from $648.9 million in 2014, and diluted EPS of $3.87 versus $4.86. The filing attributes the decline primarily to lower after-tax net investment gains ($106 million decrease) and lower after-tax net investment income ($60 million decrease), partially offset by a $14 million increase in after-tax underwriting income. Total revenues rose to $7.21 billion from $7.13 billion, and gross premiums written grew 3% to $7.25 billion, with net premiums earned up 5% to $6.04 billion. Underwriting profitability was steady. The consolidated GAAP combined ratio was 93.7% in 2015 versus 93.8% in 2014, with the Insurance-Domestic segment at 92.4%, Insurance-International at 99.6% and Reinsurance-Global at 96.6%. Net favorable prior-year reserve development was $63 million, compared with $85 million in 2014. Net investment income fell 15% to $513 million as income from energy-related investment funds declined, and the average annualized yield on fixed maturities slipped to 3.2% from 3.4%. Book value per share rose to $37.31 from $36.21, and the company repurchased $224 million of common stock while paying $58 million in dividends. The balance sheet remained large relative to equity: total assets were $21.73 billion, reserves for losses and loss expenses were $10.67 billion, and the fixed maturity portfolio was $12.44 billion, or 77.3% of total investments. The filing flags sensitivity to interest rates, catastrophe losses ($58 million in 2015), and reliance on dividends from insurance subsidiaries, of which up to $684 million can be paid in 2016 without regulatory approval.
Feb 22, 2016
2014
W. R. Berkley Annual Report, Year Ended Dec 31, 2014
W. R. Berkley Corporation, an insurance holding company among the largest commercial lines writers in the United States, reported net income to common stockholders of $648.9 million in 2014, up from $499.9 million in 2013, and diluted net income per share of $4.86 versus $3.55. Total revenues rose to $7.13 billion from $6.41 billion, and net premiums written reached $5.997 billion, up from $5.500 billion. The company operates three segments: Insurance-Domestic (75.3% of 2014 net premiums written), Insurance-International, and Reinsurance-Global. The consolidated GAAP combined ratio was 93.8% in 2014 compared with 95.1% in 2013, and favorable prior-year reserve development was $85 million. Profitability improvements were driven mainly by Insurance-Domestic, whose combined ratio improved to 91.8% from 94.0%, and by higher net investment gains of $254.9 million, including an $86 million gain on the sale of a London office building. Net investment income rose 10% to $601 million, aided by investment funds, though the fixed maturity yield declined to 3.4%. Insurance-International's combined ratio deteriorated to 102.8% from 98.4%, and Reinsurance-Global's premiums fell as gross written premiums declined 14%. The company's total investments were $15.6 billion, with 81.5% in fixed maturity securities, and stockholders' equity reached $4.59 billion, or $36.21 per share. Management highlighted that current market price levels for certain lines remain below the prices required to achieve long-term return objectives, and the company paid a $1.00 special dividend in December 2014. Risk factors cited include cyclical pricing, reserve adequacy, catastrophe exposure, and regulatory and rating-agency risks.
Feb 27, 2015
2013
W. R. Berkley Annual Report, Year Ended Dec 31, 2013
W. R. Berkley Corporation, an insurance holding company among the largest commercial lines writers in the United States, reported net income to common stockholders of $499.9 million in 2013, compared with $510.6 million in 2012, and diluted EPS of $3.55 versus $3.56. The decline was attributed primarily to lower after-tax net investment gains and net investment income, partly offset by higher after-tax underwriting income. Gross premiums written rose to $6.51 billion from $5.78 billion, and net premiums written reached $5.50 billion from $4.90 billion, reflecting rate increases and expanded exposures. Total revenues were $6.41 billion and the GAAP combined ratio improved to 95.1% from 97.2%. The company operates three segments: Insurance-Domestic (pre-tax income of $648.7 million, combined ratio 94.0%), Insurance-International (pre-tax income of $56.9 million, combined ratio 98.4%), and Reinsurance-Global (pre-tax income of $110.4 million, combined ratio 97.0%). Net investment income fell to $544.3 million from $586.8 million as fixed maturity yields declined, and the average duration of the fixed maturity portfolio was 3.3 years. Reserves for losses and loss expenses were $10.08 billion gross and $8.68 billion net, and the company recorded $98 million of favorable prior-year reserve development. Balance sheet items include total assets of $20.55 billion and common stockholders' equity of $4.34 billion, or $32.79 per outstanding share. The company issued $350 million of 5.625% subordinated debentures due 2053 and prepaid $250 million of 6.750% subordinated debentures, incurring a $7 million loss on early redemption. Cash dividends declared were $0.39 per share in 2013, compared with $1.35 in 2012, and the company repurchased 3,924,355 shares for $127 million during the year.
Feb 28, 2014
2012
W. R. Berkley Annual Report, Year Ended Dec 31, 2012
W. R. Berkley Corporation, an insurance holding company among the largest commercial lines writers in the United States, reported net income to common stockholders of $510.6 million ($3.56 diluted EPS) for 2012, up from $391.2 million ($2.69) in 2011. Total revenues rose to $5.82 billion from $5.16 billion, driven by net premiums written of $4.90 billion versus $4.36 billion in 2011. Gross premiums written were $5.78 billion, with growth attributed to rate increases and expanded exposures, and the Company noted that prices increased in 2012 but loss costs are also rising and some lines remain below the pricing needed to meet long-term return objectives. The consolidated GAAP combined ratio improved to 97.2% from 98.5%, with favorable prior-year reserve development of $103 million and catastrophe losses of $80 million. The company operates five segments: Specialty, Regional, Alternative Markets, Reinsurance and International. Net investment income rose to $586.8 million, supported by investment funds income, while net investment gains were $210.5 million. Total investments were $14.47 billion, with fixed maturity securities at $11.94 billion and a portfolio average duration of 3.4 years. Shareholders' equity reached $4.31 billion, or $31.66 per share, and the Company paid a special dividend of $1.00 per share in December 2012 alongside regular dividends, totaling $184 million in dividends paid during 2012. Key risks highlighted in the filing include cyclical industry pricing, competitive pressure, reserve adequacy, catastrophe exposure, reliance on reinsurers (about $1.45 billion due from reinsurers at year-end), and regulatory developments including the Dodd-Frank Act and Solvency II. The company also disclosed that its savings and loan holding company status is expected to end after the planned sale of InsurBanc's assets and deposits, with closing expected in the first half of 2013.
Feb 28, 2013
2011
W. R. Berkley Annual Report, Year Ended Dec 31, 2011
W. R. Berkley Corporation, an insurance holding company among the largest commercial lines writers in the United States, reported net income to common stockholders of $394.8 million for 2011, down from $449.3 million in 2010, and diluted EPS of $2.71 versus $2.90. The decline was attributed primarily to lower underwriting income, with catastrophe losses rising by $72 million and favorable prior-year reserve development decreasing by $52 million, partially offset by higher net investment gains. Net premiums written grew to $4.36 billion from $3.85 billion, and gross premiums written rose 15% to $5.08 billion, driven by Specialty and International growth. The consolidated GAAP combined ratio worsened to 98.3% from 94.5%, with the Regional segment deteriorating most sharply to 103.9%. Total revenues increased to $5.16 billion from $4.72 billion, and total common stockholders' equity reached $4.01 billion, or $29.15 per outstanding share, up from $26.26. Operating cash flow improved to $670 million from $451 million. The company stated that 26 of its 27 A.M. Best-rated insurance subsidiaries carry A+ (Superior) ratings, and that statutory dividends of approximately $417 million can be paid to the parent in 2012 without regulatory approval. The filing also notes a $542 million TRIA deductible for 2012 and an expected reduction in equity of $50 million to $60 million from new deferred acquisition cost guidance effective January 1, 2012. The filing describes a company in a mixed environment: prices rose modestly in 2011, but loss costs were also increasing, and management stated that current price levels for certain lines remain below the levels needed to achieve its return objectives. Investment income was stable at $526 million, with a portfolio averaging 3.6 years in duration and fixed maturities representing 84% of total investments.
Feb 28, 2012
2010
W. R. Berkley Annual Report, Year Ended Dec 31, 2010
W. R. Berkley Corporation is an insurance holding company and one of the largest commercial lines writers in the United States, operating in five segments: specialty, regional, alternative markets, reinsurance and international. For 2010, net premiums written were $3,850,926 thousand ($3.85 billion), up from $3,730,095 thousand in 2009, and net premiums earned were $3,835,582 thousand. Net income to common stockholders rose to $449,287 thousand ($2.90 per diluted share) from $309,057 thousand ($1.86 per diluted share) in 2009. The filing attributes the increase mainly to lower losses from investment funds ($8 million in 2010 versus $174 million in 2009) and lower other-than-temporary impairments ($9 million versus $143 million in 2009 as reported in MD&A). The consolidated GAAP combined ratio was 94.5% in 2010 compared with 94.2% in 2009, with the loss ratio improving to 60.2% from 61.4% on favorable prior-year reserve development of $234 million net of premium offsets. The international segment's combined ratio was 102.2%, and gross premiums written there rose 37% to $602 million. Stockholders' equity was $3,702,876 thousand at year-end, or $26.26 per share, and the company repurchased 17,017,479 shares in 2010 for $449 million. Management's 2010 Annual Report (Exhibit 13) is incorporated by reference for the full MD&A and financial statements, and the filing notes that current pricing for certain lines remains below levels needed to achieve return objectives. Key risks highlighted include the cyclical and competitive nature of the industry, reserve adequacy (gross loss reserves of about $9 billion), catastrophe exposure, investment market volatility (fixed maturity securities were about 86% of investments), ratings dependence, and limited dividend capacity from insurance subsidiaries, which can pay about $490 million without regulatory approval in 2011.
Feb 28, 2011
2009
W. R. Berkley Annual Report, Year Ended Dec 31, 2009
W. R. Berkley Corporation, a Delaware insurance holding company, reported net income to common stockholders of $309.1 million for 2009, compared with $281.1 million in 2008, and diluted EPS of $1.86 versus $1.62. The company describes itself as among the largest commercial lines writers in the United States, operating five segments: specialty, regional, alternative markets, reinsurance and international. Net premiums written declined to $3.73 billion in 2009 from $4.03 billion in 2008, and net premiums earned fell to $3.81 billion from $4.29 billion. The consolidated GAAP combined ratio was 94.2% in 2009 versus 93.1% in 2008, with the loss ratio improving to 61.4% from 62.7%. Results were helped by lower other-than-temporary impairments of $152 million, compared with $434 million in 2008, but were offset by $174 million of losses from investment funds, primarily real estate funds. Total investments were $13.05 billion at year-end 2009, with fixed maturity securities of $11.3 billion, about 87% of the investment portfolio. Stockholders' equity rose to $3.60 billion from $3.05 billion, and book value per share was $22.97 versus $18.87. The company repurchased 6,382,331 shares for $147 million in 2009, and the Board increased the repurchase authorization by 10,000,000 shares on February 8, 2010. Gross reserves for losses and loss expenses were $9.07 billion, and the company recorded favorable prior-year reserve development of $234 million before premium offsets ($190 million net). The filing notes that the company expects continued improvement in pricing in 2010, after competition and downward pricing pressure that began in 2004 and persisted through 2008. Management also cautions about catastrophe exposure, reliance on reinsurers for about $973 million of recoverables, ratings sensitivity, and the ongoing economic downturn's effect on investment values. Dividends from insurance subsidiaries are limited to approximately $384 million without regulatory approval in 2010.
Feb 26, 2010
2008
W. R. Berkley Annual Report, Year Ended Dec 31, 2008
W. R. Berkley Corporation, a Delaware insurance holding company, is among the largest commercial lines writers in the United States, operating in five segments: specialty, regional, alternative markets, reinsurance and international. In 2008 net premiums written fell to $4.03 billion from $4.58 billion in 2007, and net income dropped to $281.1 million, or $1.62 per diluted share, from $766.2 million, or $3.90 per diluted share. The filing attributes the decline primarily to realized investment losses of $356.9 million, including $433.6 million of other-than-temporary impairment provisions, along with lower underwriting profits and investment income. The consolidated combined ratio rose to 93.1% from 88.1%, with the loss ratio at 62.7% and the expense ratio at 30.4%. Net favorable prior-year reserve development was $195.7 million, and the company's gross loss reserves totaled $9.0 billion at year end. The filing describes a competitive pricing environment in which renewal prices declined roughly 5% and new business volume fell. Net investment income declined to $537.0 million from $634.4 million, reflecting lower arbitrage trading income and dividend deferrals on Fannie Mae and Freddie Mac preferred stock. Stockholders' equity declined to $3.05 billion, or $18.87 per share, from $3.59 billion, while the company repurchased 20,677,144 shares for $553 million during 2008. Management also disclosed a $111 million pre-tax fourth-quarter 2008 loss from investment funds that will be recorded in the first quarter of 2009. Investors should weigh the company's large share repurchases and dividend capacity, which the filing limits to approximately $392 million during 2009 without regulatory approval, against the impairment losses and the continuing softness in pricing. The filing states that 22 of 24 A.M. Best-rated insurance subsidiaries carry an A+ (Superior) rating.
Feb 27, 2009
2007
W. R. Berkley Annual Report, Year Ended Dec 31, 2007
W. R. Berkley Corporation, a Delaware insurance holding company, reported net income of $743.6 million for 2007, up from $699.5 million in 2006, with diluted earnings per share of $3.78 compared with $3.46. Total revenues were $5.55 billion and income before income taxes was $1.06 billion. The filing attributes the earnings increase to higher investment income from operating cash flow, with underwriting profits essentially unchanged as favorable prior-year reserve development offset a higher expected loss ratio for accident year 2007 and higher underwriting expenses. Net premiums written declined to $4.58 billion from $4.82 billion, and the company stated that price levels for renewal business fell approximately 5% in 2007 amid increased competition, a trend it expects to continue in 2008. The company operates in five segments: specialty, regional, alternative markets, reinsurance and international. Specialty was the largest by premium, with net premiums written of $1.70 billion, and recorded a combined ratio of 84.0%. Total stockholders' equity was $3.57 billion at year end, or $19.80 per share. Gross loss reserves reached $8.68 billion, and the company reported favorable prior-year loss reserve development of $106 million. Management repurchased 16,130,773 shares for $489 million during 2007, and the board authorized a 20,000,000-share repurchase program in November 2007. The filing states that the company's insurance subsidiaries can pay approximately $653 million in dividends during 2008 without regulatory approval. Total debt rose to $1.12 billion of senior notes and other debt after a $250 million 6.25% senior note issuance in February 2007. Management's discussion, financial statements and portions of the annual report are incorporated by reference from Exhibit 13.
Feb 29, 2008
2006
W. R. Berkley Annual Report, Year Ended Dec 31, 2006
W. R. Berkley Corporation, a Delaware insurance holding company, reported record results for 2006, with net income of $699.5 million, or $3.46 per diluted share, up from $544.9 million, or $2.72 per diluted share, in 2005. Net premiums written rose to $4.82 billion from $4.60 billion, and total revenues reached $5.39 billion. Income before income taxes was $988.6 million. The increase in net income reflected higher investment income, which rose to $586.2 million from $404.0 million, and higher underwriting profits. The consolidated loss ratio improved to 61.0% from 62.4%, and the combined ratio improved to 88.0% from 89.3%. Lower prior-year reserve development ($27 million in 2006 versus $187 million in 2005) and lower weather-related losses ($39 million versus $99 million) contributed to the improvement. Segment results were mixed. Specialty and alternative markets posted the strongest combined ratios at 84.1% and 75.6%, while regional property casualty deteriorated to a 90.3% combined ratio from 86.4%, and reinsurance was roughly break-even at 99.8% versus 104.2% in 2005. Gross premiums written grew about 4% to $5.3 billion. Stockholders' equity increased to $3.34 billion, or $17.30 per share, from $2.57 billion, and the company's investment portfolio totaled $11.11 billion at year-end, of which fixed income securities were about 82%. The filing also flags risks that investors should weigh. These include the cyclical nature of property casualty pricing, reserve adequacy uncertainty (gross loss reserves of $7.8 billion), catastrophe exposure, the expiration of federal terrorism reinsurance (TRIA) after December 31, 2007, and the dependence of the holding company on dividends from insurance subsidiaries, with approximately $603 million available for dividends without regulatory approval in 2007. In February 2007, the company issued $250 million of 6.25% senior notes due 2037.
Mar 1, 2007
2005
W. R. Berkley Annual Report, Year Ended Dec 31, 2005
W. R. Berkley Corporation, a Delaware insurance holding company, reports in its 2005 Form 10-K that it is among the largest commercial lines writers in the United States, operating in five segments: specialty, regional, alternative markets, reinsurance and international. Net premiums written rose to $4,604,574 thousand in 2005 from $4,266,361 thousand in 2004, and net income increased to $544,892 thousand, or $4.08 per diluted share, from $438,105 thousand, or $3.31 per diluted share. Total revenues were $4,996,839 thousand and the consolidated combined ratio was 89.3%, compared with 90.4% in 2004. The filing states that net investment income rose to $403,962 thousand from $291,295 thousand, reflecting a 28% increase in average invested assets. Reserves are a key focus for investors. Gross reserves for losses and loss expenses reached $6,711,760 thousand at December 31, 2005, up from $5,449,611 thousand. The company increased its estimates for claims occurring in prior years by $186,728 thousand in 2005, compared with $294,931 thousand in 2004, and the filing cites higher than expected losses on certain business written from 1998 to 2001. The filing also notes softening pricing, with renewal price levels declining approximately 1% in 2005, and states that a 3-for-2 stock split was approved on March 7, 2006, with shares expected to be issued April 4, 2006. Balance sheet and capital metrics show stockholders' equity of $2,567,077 thousand and total investments of $10,378,250 thousand at year-end 2005. Senior notes and other debt were $967,818 thousand and junior subordinated debentures were $450,634 thousand, with the company citing dependence on insurance subsidiary dividends, with approximately $311 million permitted to be paid without regulatory approval during 2006.
Mar 13, 2006
2004
W. R. Berkley Annual Report, Year Ended Dec 31, 2004
W. R. Berkley Corporation, an insurance holding company, reported net income of $438.1 million for 2004, up from $337.2 million in 2003, and diluted earnings per share of $4.97 versus $3.87. Total revenues rose to $4.51 billion from $3.63 billion, and net premiums written reached $4.27 billion, compared with $3.67 billion in 2003. The company attributed the improvement to higher underwriting profits and investment income, with the consolidated combined ratio improving to 90.4% from 91.4%. Gross premiums written were $4.7 billion, with price increases and new business as the main drivers, and the company noted growing price competition. The company operates five segments: specialty, regional, alternative markets, reinsurance and international. Total investments were $8.34 billion at year-end 2004, and stockholders' equity grew to $2.11 billion from $1.68 billion. Gross loss reserves stood at $5.45 billion, and the filing reports that the company increased estimates for prior-year claims by $295 million in 2004. Total debt, including junior subordinated debentures, was $1.02 billion at face value. The filing also flags risks investors should weigh: catastrophe and terrorism exposure, reliance on reinsurers, dependence on dividends from insurance subsidiaries (about $270 million could be paid without regulatory approval in 2005), and the possible expiration of TRIA at December 31, 2005. A New York State Attorney General investigation into producer compensation practices is ongoing, and the internal review found limited instances of inappropriate solicitation practices at one operating unit.
Mar 14, 2005
2003
W. R. Berkley Annual Report, Year Ended Dec 31, 2003
W. R. Berkley Corporation reported a strong 2003 for its fiscal year ended December 31, 2003. Net premiums written rose to $3.67 billion from $2.71 billion in 2002, and net income increased to $337.2 million ($3.87 per diluted share) from $175.0 million ($2.21 per diluted share). Total revenues were $3.63 billion, and the consolidated combined ratio improved to 91.4% from 95.4% in 2002, reflecting higher prices and improved terms and conditions. The company operates through five segments: specialty, alternative markets, reinsurance, regional, and international, with specialty and regional the largest contributors to pre-tax income. Reserve development was a key watch item. The company added $273 million to estimates for claims occurring in prior years in 2003, up from $174 million in 2002, driven mainly by casualty reinsurance written from 1998 to 2001, excess and surplus lines, professional liability, and workers' compensation. Gross reserves for losses and loss expenses reached $4.19 billion at year-end, and the filing notes that reserves may prove inadequate and could require further increases. Capital and liquidity grew during the year. Stockholders' equity rose to $1.68 billion from $1.34 billion, and the company issued $200 million of 5.875% senior notes due 2013 and $150 million of 5.125% senior notes due 2010. Debt totaled $659.2 million on the balance sheet, and operating cash flow was $1.40 billion. The filing also notes that the company's regulatory dividend capacity from insurance subsidiaries in 2004 is approximately $197 million.
Mar 12, 2004
2002-A
W. R. Berkley Annual Report (Amendment), Year Ended Dec 31, 2002
W. R. Berkley Corporation's Form 10-K/A (Amendment No. 1) for fiscal year ended December 31, 2002, filed April 4, 2003, was filed solely to delete an incomplete sentence in the risk factor captioned "As a property casualty insurer, we face losses from natural and man-made catastrophes" and to restate Item 1 in its entirety. The company is an insurance holding company operating in five property casualty segments: specialty, alternative markets, reinsurance, regional, and international. Net premiums written rose to $2.71 billion in 2002 from $1.86 billion in 2001, with specialty insurance ($861.7 million), reinsurance ($680.2 million), and regional ($776.6 million) as the largest contributors. Segment pre-tax income in 2002 was $130.5 million for specialty, $65.6 million for alternative markets, $39.3 million for reinsurance, $111.8 million for regional, and $7.7 million for international, against a discontinued business pre-tax loss of $10.7 million. The filing reports a total combined ratio of 95.4% for 2002, compared with 116.5% in 2001, with the loss ratio at 65.0% and the expense ratio at 30.4%. Net reserves for losses and loss adjustment expenses were $2.32 billion at December 31, 2002, up from $2.03 billion a year earlier. The filing also notes that investment income before expenses was $210.9 million on average investments of $3.88 billion, and that in the first quarter of 2003 the company issued $200 million of ten-year 5.875% senior notes and repaid $61 million of maturing debt. Management also disclosed plans to form a U.K. authorized insurance company expected to begin operating in the third quarter of 2003. The filing's risk factors emphasize cyclicality, reserve adequacy (including exposure to the World Trade Center attack, the Enron bankruptcy, and asbestos and environmental claims), increased retention levels, catastrophe exposure, reinsurance availability and counterparty risk, and dependence on dividends from insurance subsidiaries. The company's stated A.M. Best ratings are A (Excellent) for most domestic insurers and A+ (Superior) for Admiral Insurance Company.
Apr 4, 2003
2002
W. R. Berkley Annual Report, Year Ended Dec 31, 2002
W. R. Berkley Corporation, a Delaware insurance holding company, reported net income of $175.0 million, or $3.31 per diluted share, for 2002, compared with a net loss of $91.5 million, or $2.09 per share, in 2001. Net premiums written rose to $2.71 billion from $1.86 billion, and total revenues were $2.57 billion versus $1.94 billion. The combined ratio improved to 95.4% from 116.5% in 2001, with the loss ratio falling to 65.0% from 82.1%. Stockholders' equity increased to $1.34 billion, or $24.18 per share, from $931.6 million, aided by a secondary stock offering that netted $167 million in November 2002. The company operates in five property casualty segments (specialty, alternative markets, reinsurance, regional and international) plus a discontinued business segment comprising personal lines and alternative markets reinsurance exited in 2001. Specialty and reinsurance were the main drivers of growth: specialty net premiums written rose 63.4% and reinsurance rose 187.3%, while the discontinued segment's underwriting loss narrowed. Prior-year reserve increases of $173.7 million were recorded in 2002, principally in the reinsurance and specialty segments, and the filing states that known asbestos and environmental claims have not had a material impact on operations. The filing also highlights risks including cyclicality, reserve adequacy, increased retention levels, catastrophe and terrorism exposure, and Argentine economic disruption, which led the company to cease writing life insurance there in 2002. In the first quarter of 2003 the company issued $200 million of 5.875% senior notes due 2013, repaid $61 million of maturing debt, and announced plans to form a U.K. insurance company expected to begin operations in the third quarter of 2003.
Mar 31, 2003
2001
W. R. Berkley Annual Report, Year Ended Dec 31, 2001
W. R. Berkley Corporation reported a net loss of $91.5 million, or $3.14 per share, for 2001, compared with net income of $36.2 million, or $1.39 per share, for 2000. The loss was driven by an underwriting loss of $277.7 million, up from $122.6 million in 2000, and by an after-tax loss of $87 million from discontinued businesses (regional personal lines and the alternative markets reinsurance division). The company strengthened loss reserves by $135 million during 2001, recorded estimated World Trade Center losses of $35 million, and set up an $18 million reinsurance reserve for potential surety losses tied to Enron. The combined ratio rose to 116.5% from 108.2% in 2000, with the reinsurance segment at 141.2%. Gross premiums written rose 22% to $2.21 billion and net premiums written rose 23% to $1.86 billion. Growth came mainly from the specialty segment, where net premiums written increased 85%, and from the regional and international segments. Stockholders' equity rose to $931.6 million from $680.9 million, largely from a public stock offering and option exercises that brought in net proceeds of about $341 million, and book value per share was $28.03 versus $26.54. Net investment income fell to $195.0 million from $210.4 million as the yield dropped to 6.3% from 7.3%, reflecting lower merger arbitrage returns. The company also reduced the carrying value of Argentine public bonds by $18 million and said it expects a significant reduction in premiums and underwriting losses for the discontinued business segment in 2002. The company stopped writing business with large national surety exposures effective January 1, 2002, entered quota share reinsurance contracts with MAP Capital and two Lloyd's syndicates managed by Kiln, and announced the formation of Berkley Medical Excess Underwriters and Berkley Capital Underwriters. Management also said it expects reinsurance costs to rise in 2002 following the September 11 attacks.
Mar 28, 2002
2000
W. R. Berkley Annual Report, Year Ended Dec 31, 2000
W. R. Berkley Corporation's 2000 Form 10-K describes an insurance holding company operating in five property casualty segments: specialty insurance, alternative markets, reinsurance, regional insurance, and international. Net premiums written rose to $1,506.2 million in 2000 from $1,427.7 million in 1999, with regional premiums ($640.8 million) the largest segment at 42.5% of the total. Net income attributable to common stockholders was $36.2 million, or $1.39 per diluted share, compared with a net loss of $37.1 million, or $1.43 per diluted share, in 1999. The statutory combined ratio improved to 107.0% in 2000 from 112.2% in 1999, driven by lower loss and expense ratios, though the specialty and alternative markets segments deteriorated in the 2000 underwriting results. The filing highlights a shift in strategy and risk. The reinsurance unit restructured in 2000 to focus on specialty lines and excess-of-loss treaties, withdrew from Latin America and the Caribbean, and expects lower reinsurance premiums. Management also anticipates retaining more risk in 2001 by buying less reinsurance, which it says could make earnings more volatile. Standard & Poor's has held a negative outlook on the company since March 2000, and the filing states that a downgrade is possible. Stockholders' equity increased to $680.9 million at year-end 2000 from $591.8 million, and on March 6, 2001 the company issued 3,105,000 common shares for net proceeds of $122 million to strengthen its insurance subsidiaries. Investors should weigh the improved 2000 profitability against the company's reliance on fixed income investments, its exposure to merger arbitrage (about 14% of total investments), and the risks of reserve adequacy and catastrophe losses. Loss reserves were $2.53 billion at year-end 2000, and the filing discloses a cumulative undiscounted redundancy on the 1990 through 1999 reserve years but a deficiency for 1999 and 2000 reserve development.
Mar 23, 2001
1999
W. R. Berkley Annual Report, Year Ended Dec 31, 1999
W. R. Berkley Corporation reported a net loss attributable to common stockholders of $37 million, or $1.43 per diluted share, for 1999, compared with net income of $46 million, or $1.59 per diluted share, in 1998. The operating loss, defined as net loss before realized gains and losses, changes in accounting principle and extraordinary items, was $31 million in 1999, or $1.19 per diluted share, versus operating income of $35 million in 1998. Management attributed the deterioration primarily to higher loss reserves and the effects of competition on rate adequacy. The regional segment was the main drag: its combined ratio rose to 121.5% from 112.7%, driven by a $55 million fourth-quarter loss reserve adjustment and a $11.5 million restructuring charge taken in the first quarter. Top-line growth continued. Net premiums written rose 6% to $1.43 billion, led by reinsurance (up 15% to $309 million) and alternative markets (up 15% to $122 million), while regional premiums grew only 1%. Net investment income fell 6% to $190 million, reflecting a smaller invested asset base after share and preferred repurchases and a lower portfolio yield of approximately 6.5%. Consolidated stockholders' equity declined to $591.8 million from $861.3 million, mainly due to repurchases of common and preferred stock (about $120 million), a $99 million after-tax decline in unrealized investment gains, and the 1999 net loss. The company also disclosed a Year 2000 readiness effort that cost approximately $7 million through December 31, 1999 with no significant disruption, and a $150 million shelf registration with $35 million of short-term debt outstanding under a credit facility that must be extended by December 8, 2000. The filing notes that $25 million of senior notes mature on March 6, 2000, which management expects to fund through insurance subsidiary distributions and credit facility borrowings.
Mar 27, 2000
1998
W. R. Berkley Annual Report, Year Ended Dec 31, 1998
W. R. Berkley Corporation's 1998 Form 10-K reports that net income attributable to common stockholders declined to $46.2 million, or $1.59 per diluted share, from $91.2 million, or $3.02 per diluted share, in 1997. Management attributes the decline primarily to deterioration in underwriting results, driven by higher weather-related losses (weather losses of $58.8 million versus $32.8 million in 1997) and the effects of competition on rate adequacy. The consolidated statutory combined ratio rose to 106.6% from 101.2%, and the loss ratio increased to 71.2% from 66.4%. The regional insurance operations posted a loss before income taxes of $24.5 million in 1998, compared with pre-tax income of $47.6 million in 1997. Top-line growth remained strong: net premiums written rose 14% to $1.35 billion, with growth across all segments, including a 30% increase in reinsurance and a 79% increase in international operations. Net investment income was roughly flat at $202.4 million, and realized investment gains rose to $25.4 million. Stockholders' equity fell to $861.3 million from $947.3 million, reflecting $117.9 million of share repurchases. Book value per share was $28.80, versus $28.72 a year earlier. The company disclosed a planned restructuring of its ten regional insurance companies into four geographic groups, expected to be completed by the end of 1999, with a one-time after-tax charge of $9 million to $13 million in the first quarter of 1999. The Series A Preferred Stock was redeemed on January 25, 1999 at $150 per share. Management also reports that pollution and environmental claims have not had a material impact on operations, and that Year 2000 costs have been modest, at about $6 million expensed through 1998 with roughly $2 million more expected in 1999.
Mar 23, 1999
1997
W. R. Berkley Annual Report, Year Ended Dec 31, 1997
W. R. Berkley Corporation, a Delaware insurance holding company, reported net income attributable to common stockholders of $91.2 million, or $3.09 basic and $3.02 diluted per share, for 1997, compared with $76.4 million, or $2.56 basic, in 1996. Total revenues rose to $1,400.3 million from $1,225.2 million. Net premiums written grew 12% to $1,177.6 million, driven by growth in the regional, specialty, alternative markets, and international operations. Management's Discussion notes the consolidated combined ratio (statutory basis) improved to 101.2% from 102.2%, and the loss ratio fell to 66.4% from 68.7%. Stockholders' equity rose to $947.3 million, and total assets reached $4,599.3 million. The company operates across regional property casualty insurance, reinsurance (through Signet Star Holdings), specialty lines (including Admiral and Nautilus), alternative markets (including Midwest Employers Casualty), and international operations in Argentina and the Philippines. Management expects start-up losses in a new specialty operation and in its Philippine units during 1998, though it does not expect these to have a material adverse impact on results. The filing also highlights balance sheet actions during 1997, including repurchases of Series A Preferred Stock and a trust funded to redeem the remaining shares on January 25, 1999. Preferred dividends fell to $7.8 million from $13.9 million. The company reported that pollution and environmental net reserves were $33.1 million at year-end 1997, and that no significant year 2000 claims had arisen to date.
Mar 27, 1998
1996
W. R. Berkley Annual Report, Year Ended Dec 31, 1996
W. R. Berkley Corporation, a Delaware insurance holding company, reported net income attributable to common stockholders of $76.4 million, or $3.84 per share, for 1996, compared with $49.8 million, or $2.86 per share, in 1995. The company's 1996 results included after-tax realized investment gains of $5 million, or $.24 per share. Net premiums written grew 22% to $1,053 million, with growth across all segments: regional ($531 million), reinsurance ($218 million), specialty ($202 million), alternative markets ($76 million, including Midwest Employers Casualty Company acquired in November 1995), and international ($25 million). The consolidated combined ratio on a statutory basis improved slightly to 102.2% from 102.5%, and the company's total revenues rose to $1,225.2 million from $1,021.9 million. Balance sheet capitalization changed during 1996. The company issued $100 million of 6.25% notes in January 1996 and, in December 1996, issued $210 million of 8.197% Company obligated mandatorily redeemable preferred securities through the W.R. Berkley Capital Trust. Proceeds were used to retire the Series B Preferred Stock and to repurchase 252,273 shares of Series A Preferred Stock during December 1996 and January 1997. Stockholders' equity declined to $879.7 million from $929.8 million, and long-term debt rose to $390.1 million. Total assets were $4,073.3 million at year-end 1996, and the company reported a book value of $37.69 per common share. The company operates through regional, reinsurance, specialty, alternative markets, and international segments. The 10-K states that known pollution and environmental claims have not had a material impact on operations, and that no pending litigation is expected to have a material adverse effect. The company's common stock trades on NASDAQ under the symbol "BKLY"; quarterly cash dividends rose from $.12 to $.13 per share during 1996.
Mar 25, 1997
1995
W. R. Berkley Annual Report, Year Ended Dec 31, 1995
W. R. Berkley Corporation, a Delaware insurance holding company, reported net premiums written of $860.4 million for 1995, up from $717.9 million in 1994, with growth in all four segments: regional insurance, reinsurance (conducted through Signet Star Holdings, Inc.), specialty insurance, and alternative markets. Net income attributable to common stockholders was $49.8 million, or $2.86 per share, compared with $24.7 million, or $1.44 per share, in 1994. Results included after-tax realized investment gains of $6 million, or $.36 per share. The statutory combined ratio for the insurance operations improved to 102.5% from 105.0% in 1994, which the company attributed mainly to the Northridge Earthquake's effect on 1994 results. The balance sheet expanded significantly during 1995. Total assets were $3.62 billion and stockholders' equity rose to $929.8 million from $597.6 million, driven by a $145 million common stock offering and a $66 million preferred stock issuance. The company acquired Midwest Employers Casualty Company for $141.9 million in November 1995 and bought General Re's 40% interest in Signet Star Holdings on December 31, 1995. Reserves for losses and loss expenses fell to $1.66 billion from $2.07 billion, largely because of the sale of North Star Reinsurance Company, which reduced ceded reserves. The filing describes a company with a broad base of regional and specialty insurance subsidiaries and a growing alternative markets business. Investors would note the 1995 earnings recovery, the expansion of the balance sheet through acquisitions and equity issuance, and the January 1996 issuance of $100 million of 6.25% ten-year notes. The company also reported that its reserves for pollution and environmental claims were $30.8 million net at year-end 1995.
Mar 26, 1996