How did W. R. Berkley perform in the second quarter of 2024?

The company reported net income to common stockholders of $371.9 million, or $0.92 per diluted share, compared with $356.3 million, or $0.87 per diluted share, in the second quarter of 2023. Operating income, which excludes after-tax net investment gains and losses, was $418.1 million, or $1.04 per diluted share. Return on equity was 20.0% and operating return on equity was 22.4%.

What drove the change in net investment income?

Net investment income rose 51.8% to a record $372.1 million. The press release attributes the increase to higher fixed-maturity income from a growing portfolio with higher yields, and management expects its new money rate to remain above the current yield of its fixed-maturity securities for the foreseeable future.

How did underwriting performance look?

Net premiums written grew 11.2% to a record $3.13 billion. The GAAP combined ratio was 91.1%, compared with 89.6% a year earlier, and included 3.2 loss ratio points of catastrophe losses. Average rate increases excluding workers' compensation were approximately 8.3%.

How much capital did the company return to shareholders?

Total capital returned was $381.3 million, consisting of $223.8 million of share repurchases, $127.0 million of special dividends and $30.5 million of regular dividends. The company repurchased 4,298,510 shares during the period.

What was the effect of the stock split?

The company effected a 3-for-2 common stock split on July 10, 2024. Per-share amounts for 2024 in the filing are adjusted for the split, and 2023 per-share amounts were restated for comparability.

W. R. Berkley 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed July 22, 2024. Cited figures are marked; the original filing is the authoritative source.

W.

R. Berkley Corporation filed this Form 8-K under Item 2.02 (Results of Operations and Financial Condition) to furnish its press release, dated July 22, 2024, announcing results for the second quarter of 2024. The company reported net income to common stockholders of $371.9 million^a, or $0.92 per diluted share, for the quarter, versus $356.3 million, or $0.87 per diluted share, a year earlier.

Operating income, a non-GAAP measure defined as net income excluding after-tax net investment gains and losses, was $418.1 million^b, or $1.04 per diluted share. Return on equity was 20.0% and operating return on equity was 22.4% for the quarter. All per-share figures are adjusted for the 3-for-2 common stock split effected on July 10, 2024.

Underwriting results were solid. Gross premiums written rose to $3.72 billion and net premiums written to $3.13 billion^c, with the company describing the latter as a record. The GAAP combined ratio was 91.1%, including 3.2 loss ratio points of catastrophe losses, compared with 89.6% a year earlier.

Net investment income reached a record $372.1 million^d, up from $245.2 million. Net investment losses of $58.5 million, driven by unrealized losses on equity securities, partially offset that income in the quarter. Capital returns were significant.

The company repurchased $223.8 million of common stock and paid $127.0 million in special dividends and $30.5 million in regular dividends, for total capital returned of $381.3 million. Book value per share, adjusted for the split, was $20.42 at June 30, 2024, up from $19.37 at December 31, 2023. The filing itself incorporates the press release as Exhibit 99.1 and states that the information is furnished rather than filed.

02—Key points

Key Highlights

Net income to common stockholders of $371.9 million ($0.92 per diluted share) in Q2 2024, up from $356.3 million ($0.87) in Q2 2023.
Operating income of $418.1 million ($1.04 per diluted share), up from $310.9 million ($0.76), excluding after-tax net investment losses.
Record net investment income of $372.1 million, up from $245.2 million in the prior-year quarter.
Record net premiums written of $3.13 billion; gross premiums written of $3.72 billion.
GAAP combined ratio of 91.1% versus 89.6% a year earlier, including 3.2 loss ratio points of catastrophe losses.
Total capital returned to shareholders of $381.3 million, including $223.8 million in share repurchases and $157.5 million in dividends.
Book value per share of $20.42 at June 30, 2024, versus $19.37 at December 31, 2023, reflecting the 3-for-2 stock split.

03—Questions

Frequently Asked Questions

How did W. R. Berkley perform in the second quarter of 2024?
The company reported net income to common stockholders of $371.9 million, or $0.92 per diluted share, compared with $356.3 million, or $0.87 per diluted share, in the second quarter of 2023. Operating income, which excludes after-tax net investment gains and losses, was $418.1 million, or $1.04 per diluted share. Return on equity was 20.0% and operating return on equity was 22.4%.
What drove the change in net investment income?
Net investment income rose 51.8% to a record $372.1 million. The press release attributes the increase to higher fixed-maturity income from a growing portfolio with higher yields, and management expects its new money rate to remain above the current yield of its fixed-maturity securities for the foreseeable future.
How did underwriting performance look?
Net premiums written grew 11.2% to a record $3.13 billion. The GAAP combined ratio was 91.1%, compared with 89.6% a year earlier, and included 3.2 loss ratio points of catastrophe losses. Average rate increases excluding workers' compensation were approximately 8.3%.
How much capital did the company return to shareholders?
Total capital returned was $381.3 million, consisting of $223.8 million of share repurchases, $127.0 million of special dividends and $30.5 million of regular dividends. The company repurchased 4,298,510 shares during the period.
What was the effect of the stock split?
The company effected a 3-for-2 common stock split on July 10, 2024. Per-share amounts for 2024 in the filing are adjusted for the split, and 2023 per-share amounts were restated for comparability.

04—Continue

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