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

Net income to common stockholders was $576.1 million, or $1.44 per diluted share, up from $397.3 million, or $0.98 per diluted share, a year earlier. Operating income was a record $452.6 million, or $1.13 per diluted share. Fourth-quarter gross premiums written were $3.50 billion, and the reported combined ratio was 90.2%.

What was the company's full-year 2024 profitability?

Full-year net income to common stockholders was $1.76 billion, or $4.36 per diluted share, compared with $1.38 billion, or $3.37 per diluted share, in 2023. Operating income was $1.67 billion, or $4.14 per diluted share. Return on equity was 23.6% and operating return on equity was 22.4%.

How much capital did the company return to shareholders?

The company returned $835.6 million to shareholders in 2024, consisting of $412.3 million of special dividends, $303.7 million of share repurchases and $119.6 million of regular dividends. In the fourth quarter alone, it returned $287.8 million, including $190.0 million of special dividends.

How did the investment portfolio contribute to results?

Net investment income rose 26.6% to a record $1.3 billion for the year, driven by the core portfolio, which generated $1.28 billion. Net investment gains were $117.7 million for the year. Total net invested assets were $29.78 billion at December 31, 2024, with fixed maturity securities at 75.1% of the total and an average rating of AA-.

What did management say about the outlook for 2025?

Management stated that the current property and casualty (re)insurance and investment environments remain favorable to its business model and that it anticipates ongoing success in 2025. It also noted that current reinvestment rates exceed its annual book yield, which it expects to support further investment income growth in 2025. The filing notes that actual results could differ materially from these expectations.

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

01—Abstract

Summary

Summary of the 8-K filed January 27, 2025. Cited figures are marked; the original filing is the authoritative source.

R. Berkley Corporation reported fourth quarter and full year 2024 results in a press release dated January 27, 2025, furnished as Exhibit 99.1 to this Form 8-K under Item 2.02. For the fourth quarter, net income to common stockholders was $576.1 million^a, up 45.0% from $397.3 million, and operating income was a record $452.6 million, up 15.5%.

Return on equity was 30.9% and operating return on equity was 24.3%. The calendar-year combined ratio was 90.2% for the quarter, and gross premiums written reached $3.50 billion^b for the quarter. For full year 2024, the company reported record net income of $1.76 billion, record pre-tax underwriting income of $1.1 billion, and record gross and net premiums written of $14.2 billion and $12.0 billion, respectively, with growth of 9.6% and 9.3%.

Return on equity was 23.6% and operating return on equity was 22.4%. Book value per share grew 23.5% before dividends and share repurchases, and net investment income rose 26.6% to a record $1.3 billion^c. Total capital returned to shareholders was $835.6 million, including $412.3 million of special dividends.

At December 31, 2024, book value per share was $22.09^d, up from $19.37, and total assets were $40.57 billion. Management stated that the property and casualty environment remains favorable and expects continued success in 2025, while the filing includes customary forward-looking statement cautions.

02—Key points

Key Highlights

Record full-year 2024 net income of $1.76 billion (diluted EPS $4.36) and record pre-tax underwriting income of $1.1 billion.
Fourth-quarter net income rose 45.0% to $576.1 million; operating income rose 15.5% to a record $452.6 million.
Fourth-quarter return on equity of 30.9% and operating return on equity of 24.3%; full-year ROE of 23.6%.
Full-year gross premiums written grew 9.6% to $14.2 billion; net premiums written grew 9.3% to $12.0 billion.
Average rate increases excluding workers' compensation were approximately 7.9% for the full year and 7.7% for the fourth quarter.
Net investment income grew 26.6% to a record $1.3 billion for 2024; full-year operating cash flow was a record $3.7 billion.
Capital returned to shareholders totaled $835.6 million in 2024, including $412.3 million of special dividends and $303.7 million of share repurchases; book value per share was $22.09 at year-end.

03—Questions

Frequently Asked Questions

How did W. R. Berkley perform in the fourth quarter of 2024?
Net income to common stockholders was $576.1 million, or $1.44 per diluted share, up from $397.3 million, or $0.98 per diluted share, a year earlier. Operating income was a record $452.6 million, or $1.13 per diluted share. Fourth-quarter gross premiums written were $3.50 billion, and the reported combined ratio was 90.2%.
What was the company's full-year 2024 profitability?
Full-year net income to common stockholders was $1.76 billion, or $4.36 per diluted share, compared with $1.38 billion, or $3.37 per diluted share, in 2023. Operating income was $1.67 billion, or $4.14 per diluted share. Return on equity was 23.6% and operating return on equity was 22.4%.
How much capital did the company return to shareholders?
The company returned $835.6 million to shareholders in 2024, consisting of $412.3 million of special dividends, $303.7 million of share repurchases and $119.6 million of regular dividends. In the fourth quarter alone, it returned $287.8 million, including $190.0 million of special dividends.
How did the investment portfolio contribute to results?
Net investment income rose 26.6% to a record $1.3 billion for the year, driven by the core portfolio, which generated $1.28 billion. Net investment gains were $117.7 million for the year. Total net invested assets were $29.78 billion at December 31, 2024, with fixed maturity securities at 75.1% of the total and an average rating of AA-.
What did management say about the outlook for 2025?
Management stated that the current property and casualty (re)insurance and investment environments remain favorable to its business model and that it anticipates ongoing success in 2025. It also noted that current reinvestment rates exceed its annual book yield, which it expects to support further investment income growth in 2025. The filing notes that actual results could differ materially from these expectations.

04—Continue

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