W. R. Berkley Corporation Reports Third Quarter Results

W. R. Berkley Corporation, an insurance holding company founded in 1967, has released its third quarter 2024 results. The company, which is among the largest commercial lines writers in the United States, operates worldwide in two segments of the property casualty business: Insurance and Reinsurance & Monoline Excess.

Financial Highlights

For the third quarter of 2024, W. R. Berkley Corporation reported a net income of $366 million, marking an increase from $334 million in the same period last year. The return on equity (ROE) stood at 19.6%, while the operating return on equity was 20.0%. The company also achieved a record net investment income of $324 million, a 19.5% increase compared to the prior year.

Business and Operational Highlights

The company saw gross premiums written rise to $3.63 billion, up from $3.35 billion in the third quarter of 2023. Net premiums written also increased to $3.06 billion from $2.85 billion. The combined ratio for the current accident year before catastrophe losses was 87.6%, and the reported combined ratio was 90.9%. Additionally, average rate increases excluding workers' compensation were approximately 8.4%.

Strategic Initiatives and Corporate Developments

W. R. Berkley Corporation returned a total of $138.3 million to shareholders, consisting of $95.3 million in special dividends, $30.5 million in regular dividends, and $12.5 million in share repurchases. The company also reported a 10.0% growth in book value per share before dividends and share repurchases.

Management's Perspective

The company's leadership highlighted the strong underwriting margins and increasing investment income as key drivers of the 19.6% annualized return on beginning of year common stockholders’ equity. They emphasized the company's focus on achieving targeted risk-adjusted returns and maintaining rate adequacy, loss trend, and exposure management. The decentralized structure of the company allows for a flexible, proactive, and innovative approach to market risks and opportunities.

Future Outlook

Looking ahead, W. R. Berkley Corporation expects to continue delivering outstanding risk-adjusted returns to shareholders for the remainder of 2024 and beyond. The company anticipates that its new money rate will remain above the current yield of its U.S. fixed-maturity securities, despite recent and expected decreases in short-term rates.

SEC Filing: BERKLEY W R CORP [ WRB ] - 8-K - Oct. 21, 2024