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AnalystLens

W. R. Berkley 8-K Report, Financial Results (Oct 21, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed October 21, 2024
Period End
October 21, 2024
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. Leadership change8-K · May ’16May ’16
  2. Material agreement8-K · Dec ’19Dec ’19
  3. Material agreement8-K · Apr ’22Apr ’22
  4. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed October 21, 2024. Cited figures are marked; the original filing is the authoritative source.

W.

R. Berkley Corporation reported third quarter 2024 results in a press release dated October 21, 2024, furnished as Exhibit 99.1. The company reported record third quarter net income of $365.6 milliona, or $0.91 per diluted share, compared with $333.6 million, or $0.82 per diluted share, in the prior-year quarter.

Return on equity was 19.6% and operating return on equity was 20.0% for the quarter. Gross premiums written rose to $3.63 billionb from $3.35 billion, and net premiums written rose to $3.06 billion from $2.85 billion. The GAAP combined ratio was 90.9%, compared with 90.2% a year earlier, and the current accident year combined ratio before catastrophe losses was 87.6%, including 3.3 loss ratio points of catastrophe losses.

Net investment income grew 19.5% to $323.8 millionc, and operating cash flow was a record $1.24 billion for the quarter. Book value per share was $22.11 at September 30, 2024, versus $19.37 at December 31, 2023, and the company returned $138.3 million to shareholders in the quarter, including $95.3 million of special dividends. Management stated that the company expects its new money rate to remain above the current yield of its U.S. fixed-maturity securities, despite expected declines in short-term rates.

The 3-for-2 common stock split effective July 10, 2024 is reflected in all per-share figures. The filing is furnished under Item 2.02 and is not deemed filed under Section 18 of the Exchange Act. It also includes a forward-looking statements safe harbor covering cyclical industry conditions, catastrophe losses, reserve estimation, investment risks, and reinsurance availability.

02—Key points

Key Highlights

  1. Record third quarter net income of $365.6 million ($0.91 per diluted share), up from $333.6 million ($0.82 per diluted share) a year earlier.
  2. Return on equity of 19.6% and operating return on equity of 20.0% for the quarter; nine-month operating return on equity was 21.7%.
  3. Gross premiums written increased to $3.63 billion from $3.35 billion; net premiums written increased to $3.06 billion from $2.85 billion.
  4. GAAP combined ratio of 90.9% versus 90.2% a year earlier; Insurance segment combined ratio was 91.5% and Reinsurance & Monoline Excess was 86.7%.
  5. Net investment income grew 19.5% to $323.8 million, driven by higher fixed-maturity income.
  6. Book value per share rose to $22.11 at September 30, 2024 from $19.37 at December 31, 2023; the company returned $138.3 million to shareholders in the quarter.
  7. Record operating cash flow of $1.24 billion for the quarter, compared with $1.08 billion a year earlier.

03—Questions

Frequently Asked Questions

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

    The company reported record third quarter net income of $365.6 million, or $0.91 per diluted share, up from $333.6 million, or $0.82 per diluted share, in the third quarter of 2023. Return on equity was 19.6% and operating return on equity was 20.0%.

  2. Did underwriting profitability change?

    The GAAP combined ratio was 90.9% for the third quarter of 2024, compared with 90.2% a year earlier. The loss ratio rose to 62.4% from 61.9%, and the expense ratio rose to 28.5% from 28.3%. The company stated that catastrophe losses were 3.3 loss ratio points in the quarter.

  3. What drove growth in investment income?

    Net investment income increased 19.5% to $323.8 million, driven by an increase in fixed-maturity income. Management expects its new money rate to remain above the current yield of its U.S. fixed-maturity securities, despite expected decreases in short-term rates.

  4. How much capital did the company return to shareholders?

    The company returned $138.3 million in the third quarter, consisting of $95.3 million of special dividends, $30.5 million of regular dividends, and $12.5 million of share repurchases.

  5. What do the adjusted per-share figures reflect?

    All 2024 and restated 2023 per-share amounts reflect the 3-for-2 common stock split effected on July 10, 2024.

04—Continue

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