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W. R. Berkley Annual Report, Year Ended Dec 31, 1996

Filing Date
Filed March 25, 1997
Period End
December 31, 1996
In the record · 2016–202610-K1110-Q338-K96

WRB filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 96 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Mar ’18Mar ’18
  2. Leadership change8-K · Dec ’20Dec ’20
  3. Leadership change8-K · Dec ’22Dec ’22
  4. FY2024 annual report10-K · Feb ’25Feb ’25

01—Abstract

Summary

Summary of the 10-K filed March 25, 1997. Cited figures are marked; the original filing is the authoritative source.

W.

R. Berkley Corporation, a Delaware insurance holding company, reported net income attributable to common stockholders of $76.4 milliona, 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 millionb, 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 millionc 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 milliond 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.

02—Key points

Key Highlights

  1. Net income attributable to common stockholders rose to $76.4 million, or $3.84 per share, from $49.8 million, or $2.86 per share, in 1995.
  2. Net premiums written grew 22% to $1,052.5 million, with increases in all five insurance segments.
  3. Total revenues increased to $1,225.2 million from $1,021.9 million; net investment income rose to $164.5 million from $137.3 million.
  4. Consolidated statutory combined ratio improved modestly to 102.2% from 102.5%, with the consolidated loss ratio falling to 68.7% from 70.7%.
  5. Issued $210 million of 8.197% Company obligated mandatorily redeemable preferred securities in December 1996 and $100 million of 6.25% notes in January 1996.
  6. Stockholders' equity declined to $879.7 million from $929.8 million, reflecting preferred stock repurchases of $77.6 million and common treasury share purchases of $24.2 million.
  7. Total assets reached $4,073.3 million at December 31, 1996, up from $3,618.7 million.

03—Questions

Frequently Asked Questions

  1. How did W. R. Berkley's earnings change in 1996?

    Net income attributable to common stockholders was $76.4 million, or $3.84 per share, in 1996, up from $49.8 million, or $2.86 per share, in 1995. The 1996 results included after-tax realized investment gains of $5 million, or $.24 per share.

  2. Which business segment drove premium growth?

    Net premiums written grew 22% to $1,052.5 million. Regional insurance contributed $531.1 million, reinsurance $218.0 million, specialty $202.5 million, alternative markets $75.6 million (boosted by the November 1995 acquisition of Midwest Employers Casualty Company), and international $25.2 million.

  3. What new financing did the company complete in 1996?

    The company issued $100 million of 6.25% ten-year 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 retired the Series B Preferred Stock and funded repurchases of Series A Preferred Stock.

  4. How did stockholders' equity and dividends change?

    Stockholders' equity decreased to $879.7 million from $929.8 million, mainly due to preferred stock repurchases and common treasury share purchases, partly offset by net income. Book value per common share was $37.69, and cash dividends declared were $.52 per share in 1996 versus $.48 in 1995.

  5. Are there material environmental or litigation exposures?

    The 10-K states that known pollution and environmental claims have not had a material impact on operations. Net reserves for pollution and environmental claims were $35.2 million at December 31, 1996. The company reported no litigation expected to have a material adverse effect on its business.

04—Continue

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