WR Berkley Corp

Latest Results (17.12.2024):

Net Income Growth

WR Berkley Corp reported a record net income for the third quarter of 2024, reaching $366 million, which marks an increase of almost 10% compared to the previous year. This growth contributed to a nine-month record net income of approximately $1.2 billion. The company attributes this success to strong underwriting and investment income, which bolstered their operating earnings to $374 million, or $0.93 per share.

Underwriting Performance

Despite facing above-average catastrophic activity, WR Berkley Corp maintained a stable earnings performance in Q3 2024. The calendar year combined ratio was reported at 90.9%, including 3.3 loss ratio points from several catastrophic events. The company's careful underwriting discipline allowed them to achieve an accident year combined ratio, excluding catastrophes, of 87.6%.

Premiums and Investment Income

WR Berkley Corp's net premiums written exceeded $3 billion for the second consecutive quarter, contributing to a 10.8% increase in net premiums earned over the prior year. Additionally, pretax net investment income rose by 20% to $324 million, driven by growth in fixed maturity securities and other investment strategies.

Dividends and Shareholder Returns

In Q3 2024, WR Berkley Corp returned a total of $138 million to shareholders, which included $95 million in special dividends, $31 million in regular dividends, and $12.5 million in share repurchases at an average price of $52.30 per share. The company's stockholders' equity surpassed $8.4 billion for the first time, supported by strong earnings and improvements in after-tax unrealized investment losses.

Financial Outlook

WR Berkley Corp remains optimistic about future growth, supported by record operating cash flow of $1.25 billion in the quarter and a year-to-date cash flow of nearly $2.9 billion. The company continues to invest in business efficiencies and new startup operating units, expecting these initiatives to enhance their expense ratio and drive further investment income growth.