Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

W. R. BERKLEY CORPORATION

(WRB)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

W R BERKLEY : REPORTS THIRD QUARTER RESULTS - Form 8-K

10/21/2021 | 04:24pm EST
W. R. BERKLEY CORPORATION REPORTS THIRD QUARTER RESULTS
Third Quarter Net Income Increased 72.3% and Return on Equity of 16.6%
Greenwich, CT, October 21, 2021 - W. R. Berkley Corporation (NYSE: WRB) today reported its third quarter 2021 results.

Summary Financial Data
(Amounts in thousands, except per share data)
Third Quarter Nine Months
2021 2020 2021 2020
Gross premiums written $ 2,787,499 $ 2,262,545 $ 7,933,446 $ 6,626,163
Net premiums written 2,325,138 1,879,316 6,587,357 5,464,980
Net income to common stockholders 261,297 151,678 728,060 218,520
Net income per diluted share 1.40 0.81 3.89 1.15
Operating income (1) 246,699 121,146 667,539 265,210
Operating income per diluted share 1.32 0.65 3.57 1.40
Return on equity (2) 16.6 % 10.0 % 15.4 % 4.8 %

(1)Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and related expenses.
(2)Return on equity represents net income expressed on an annualized basis as a percentage of beginning of year common stockholders' equity.


W. R. Berkley Corporation 2

Third quarter highlights included:
•Return on equity of 16.6%.
•Net premiums written increased 23.7%.
•The current accident year combined ratio before catastrophe losses of 3.5 loss ratio points was 86.9%.
•The reported combined ratio was 90.4%, including catastrophe losses of $73.8 million.
•Average rate increases excluding workers' compensation were approximately 10.1%.
•Net investment income increased 26.1% to $179.9 million.
•Operating income increased 103.6% to $246.7 million.
•Total capital returned to shareholders was $115.8 million, consisting of $92.7 million of share repurchases and $23.1 million of dividends.

The Company commented:
The Company had another outstanding quarter with 24% growth in net premiums written, a combined ratio of 90.4%, and an annualized return on equity of 16.6%. These results were achieved in spite of significant industry catastrophe losses and low interest rates.
Overall rate increases remained robust in nearly all lines of business, and we expect this to continue for the foreseeable future. We see expanding opportunities to write business at attractive underwriting margins, given the strong commercial property and casualty pricing environment. The increasing focus that distribution partners and clients are placing on stable markets with balance sheet strength and expertise, particularly in specialty and E&S lines, is also contributing to growth.
Underwriting income increased 80% in the quarter. We expect that exposure growth and compounding rate achievement will contribute to additional underwriting profits as premiums are fully earned. While we maintain a high-quality short-duration fixed-maturity portfolio, investment income grew 26% in the quarter as investment funds delivered another strong performance.
The Company is performing well as we remain focused on our total risk-adjusted return strategy. Opportunities like the current environment are infrequent in the property casualty insurance market, and we are striving to make the most of it.



W. R. Berkley Corporation 3
Webcast Conference Call
The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on October 21, 2021, at 5:00 p.m. eastern time. The conference call will be webcast live on the Company's website at https://ir.berkley.com/news-and-events/events-and-presentations/default.aspx. Please log on at least ten minutes early to register and download and install any necessary software. A replay of the webcast will be available on the Company's website approximately two hours after the end of the conference call. Additional financial information can be found on the Company's website at https://ir.berkley.com/investor-relations/financial-information/annual-reports/default.aspx.
About W. R. Berkley Corporation
Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty business: Insurance and Reinsurance & Monoline Excess.



W. R. Berkley Corporation 4
Forward Looking Information

This is a "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2021 and beyond, are based upon the Company's historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition, including new entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts, including claims for cybersecurity-related risks; natural and man-made catastrophic losses, including as a result of terrorist activities; the ongoing COVID-19 pandemic; the impact of climate change, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response, on our results and financial condition; foreign currency and political risks (including those associated with the United Kingdom's withdrawal from the European Union, or "Brexit") relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019; the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; potential difficulties with technology and/or cyber security issues; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2021 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

# # #



W. R. Berkley Corporation 5
Consolidated Financial Summary
(Amounts in thousands, except per share data)
Third Quarter Nine Months
2021 2020 2021 2020
Revenues:
Net premiums written $ 2,325,138 $ 1,879,316 $ 6,587,357 $ 5,464,980
Change in unearned premiums (244,120) (130,395) (684,759) (347,727)
Net premium earned 2,081,018 1,748,921 5,902,598 5,117,253
Net investment income 179,851 142,650 506,615 402,844
Net investment gains (losses):
Net realized and unrealized gains (losses) on investments 17,187 (7,772) 89,407 (89,404)
Change in allowance for credit losses on investments 2,314 46,750 (11,003) 29,093
Net investment gains (losses) 19,501 38,978 78,404 (60,311)
Revenues from non-insurance businesses 120,374 87,495 316,927 256,966
Insurance service fees 21,467 21,635 69,531 67,256
Other Income 2,072 140 3,163 2,446
Total Revenues 2,424,283 2,039,819 6,877,238 5,786,454
Expenses:
Loss and loss expenses 1,298,392 1,114,632 3,623,630 3,357,011
Other operating costs and expenses 643,045 593,969 1,907,020 1,753,142
Expenses from non-insurance businesses 115,465 85,036 308,453 256,032
Interest expense 35,100 39,768 109,846 114,874
Total expenses 2,092,002 1,833,405 5,948,949 5,481,059
Income before income tax 332,281 206,414 928,289 305,395
Income tax expense (64,963) (54,048) (191,577) (84,900)
Net Income before noncontrolling interests 267,318 152,366 736,712 220,495
Noncontrolling interest (6,021) (688) (8,652) (1,975)
Net income to common stockholders $ 261,297 $ 151,678 $ 728,060 $ 218,520
Net income per share:
Basic $ 1.41 $ 0.82 $ 3.93 $ 1.17
Diluted $ 1.40 $ 0.81 $ 3.89 $ 1.15
Average shares outstanding (1):
Basic 185,031 185,765 185,127 187,338
Diluted 186,742 187,717 187,060 189,515

(1)Basic shares outstanding consist of the weighted average number of common shares outstanding during the period (including shares held in a grantor trust). Diluted shares outstanding consist of the weighted average number of basic and common equivalent shares outstanding during the period.



W. R. Berkley Corporation 6
Business Segment Operating Results
(Amounts in thousands, except ratios) (1)
Third Quarter Nine Months
2021 2020 2021 2020
Insurance:
Gross premiums written $ 2,446,758 $ 1,981,816 $ 7,008,617 $ 5,841,328
Net premiums written 2,007,194 1,628,316 5,741,229 4,754,791
Net premiums earned 1,819,071 1,531,093 5,151,253 4,481,092
Pre-tax income 314,000 178,971 862,399 431,464
Loss ratio 61.4 % 64.4 % 61.4 % 65.5 %
Expense ratio 27.9 % 29.7 % 28.5 % 30.6 %
GAAP Combined ratio 89.3 % 94.1 % 89.9 % 96.1 %
Reinsurance & Monoline Excess:
Gross premiums written $ 340,740 $ 280,729 $ 924,829 $ 784,835
Net premiums written 317,945 251,000 846,128 710,189
Net premiums earned 261,947 217,828 751,345 636,161
Pre-tax income 52,742 61,532 196,185 110,611
Loss ratio 69.3 % 59.1 % 61.5 % 66.5 %
Expense ratio 29.1 % 31.2 % 30.1 % 32.1 %
GAAP Combined ratio 98.4 % 90.3 % 91.6 % 98.6 %
Corporate and Eliminations:
Net investment gains (losses) $ 19,501 $ 38,978 $ 78,404 $ (60,311)
Interest expense (35,100) (39,768) (109,846) (114,874)
Other revenues and expenses (18,862) (33,299) (98,853) (61,495)
Pre-tax loss (34,461) (34,089) (130,295) (236,680)
Consolidated:
Gross premiums written $ 2,787,499 $ 2,262,545 $ 7,933,446 $ 6,626,163
Net premiums written 2,325,138 1,879,316 6,587,357 5,464,980
Net premiums earned 2,081,018 1,748,921 5,902,598 5,117,253
Pre-tax income 332,281 206,414 928,289 305,395
Loss ratio 62.4 % 63.7 % 61.4 % 65.6 %
Expense ratio 28.0 % 30.0 % 28.7 % 30.8 %
GAAP Combined ratio 90.4 % 93.7 % 90.1 % 96.4 %

(1)Loss ratio is losses and loss expenses incurred expressed as a percentage of premiums earned. Expense ratio is underwriting expenses expressed as a percentage of premiums earned. GAAP combined ratio is the sum of the loss ratio and the expense ratio.



W. R. Berkley Corporation 7
Supplemental Information
(Amounts in thousands)
Third Quarter Nine Months
2021 2020 2021 2020
Net premiums written:
Other liability $ 760,515 $ 606,967 $ 2,138,816 $ 1,748,338
Short-tail lines (1) 373,427 343,888 1,090,257 974,941
Workers' compensation 277,490 257,629 879,852 857,951
Commercial automobile 295,132 230,352 822,903 648,842
Professional liability 300,629 189,480 809,401 524,719
Total Insurance 2,007,194 1,628,316 5,741,229 4,754,791
Casualty reinsurance 194,253 142,847 525,333 419,235
Monoline excess 75,504 59,267 184,676 154,105
Property reinsurance 48,189 48,886 136,118 136,849
Total Reinsurance & Monoline Excess 317,945 251,000 846,128 710,189
Total $ 2,325,138 $ 1,879,316 $ 6,587,357 $ 5,464,980
Current accident year losses from catastrophes (including COVID-19 related losses):
Insurance $ 39,230 $ 74,038 $ 108,863 $ 244,657
Reinsurance & Monoline Excess 34,560 (1,282) 44,722 52,733
Total $ 73,790 $ 72,756 $ 153,585 $ 297,390
Net Investment income:
Core portfolio (2) $ 103,372 $ 104,872 $ 306,901 $ 349,598
Investment funds 69,292 18,235 169,538 1,260
Arbitrage trading account 7,187 19,543 30,176 51,986
Total $ 179,851 $ 142,650 $ 506,615 $ 402,844
Net realized and unrealized gains (losses) on investments:
Net realized gains (losses) on investments $ 36,431 $ (38,466) $ 151,225 $ (27,545)
Change in unrealized (losses) gains on equity securities (19,244) 30,694 (61,818) (61,859)
Total $ 17,187 $ (7,772) $ 89,407 $ (89,404)
Other operating costs and expenses:
Policy acquisition and insurance operating expenses $ 583,065 $ 523,349 $ 1,694,548 $ 1,574,507
Insurance service expenses 21,243 21,034 63,817 64,029
Net foreign currency (gains) losses (12,497) 5,078 (19,216) (23,845)
Debt extinguishment costs - - 11,521 -
Other costs and expenses 51,234 44,508 156,350 138,451
Total $ 643,045 $ 593,969 $ 1,907,020 $ 1,753,142
Cash flow from operations $ 828,585 $ 557,094 $ 1,524,394 $ 1,136,945
Reconciliation of net income to operating income:
Net income $ 261,297 $ 151,678 $ 728,060 $ 218,520
Pre-tax investment (gains) losses, net of related expenses (18,820) (39,497) (75,393) 60,311
Income tax expense (benefit) 4,222 8,965 14,872 (13,621)
Operating income after-tax (3) $ 246,699 $ 121,146 $ 667,539 $ 265,210

(1)Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines.
(2)Core portfolio includes fixed maturity securities, equity securities, cash and cash equivalents, real estate and loans receivable.
(3)Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses). Net investment gains (losses) are computed net of related expenses, including performance-based compensatory costs associated with realized investment gains. Management believes this measurement provides a useful indicator of trends in the Company's underlying operations.


W. R. Berkley Corporation 8
Selected Balance Sheet Information
(Amounts in thousands, except per share data)
September 30, 2021 December 31, 2020
Net invested assets (1) $ 23,292,268 $ 21,370,503
Total assets 31,544,288 28,571,965
Reserves for losses and loss expenses 14,919,576 13,784,430
Senior notes and other debt 2,258,646 1,623,025
Subordinated debentures 1,007,472 1,102,309
Common stockholders' equity (2) 6,648,441 6,310,802
Common stock outstanding (3) 176,639 177,825
Book value per share (4) 37.64 35.49
Tangible book value per share (4) 36.39 34.22

(1)Net invested assets include investments, cash and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases, net of related liabilities.
(2)As of September 30, 2021, reflected in common stockholders' equity are after-tax unrealized investment gains of $187 million and unrealized currency translation losses of $378 million. As of December 31, 2020, after-tax unrealized investment gains were $290 million and unrealized currency translation losses were $352 million.
(3)During the nine months ended September 30, 2021, the Company repurchased 1,752,619 shares of its common stock for $122 million. During the three months ended September 30, 2021, the Company repurchased 1,287,556 shares of its common stock for $93 million. The number of shares of common stock outstanding excludes shares held in a grantor trust.
(4)Book value per share is total common stockholders' equity divided by the number of common shares outstanding. Tangible book value per share is total common stockholders' equity excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding.



W. R. Berkley Corporation 9
Investment Portfolio
September 30, 2021
(Amounts in thousands, except percentages)
Carrying Value Percent of Total
Fixed maturity securities:
United States government and government agencies $ 518,333 2.2 %
State and municipal:
Special revenue 2,110,271 9.1 %
State general obligation 447,320 1.9 %
Local general obligation 431,522 1.9 %
Pre-refunded 230,840 1.0 %
Corporate backed 177,916 0.7 %
Total state and municipal 3,397,869 14.6 %
Mortgage-backed securities:
Agency 681,798 2.9 %
Residential - Prime 159,826 0.7 %
Commercial 130,637 0.6 %
Residential - Alt A 6,326 0.0 %
Total mortgage-backed securities 978,587 4.2 %
Asset-backed securities 4,655,555 20.0 %
Corporate:
Industrial 3,132,362 13.5 %
Financial 1,699,840 7.3 %
Utilities 418,853 1.8 %
Other 173,009 0.7 %
Total corporate 5,424,064 23.3 %
Foreign government 1,098,727 4.7 %
Total fixed maturity securities (1) 16,073,135 69.0 %
Equity securities available for sale:
Common stocks 609,939 2.6 %
Preferred stocks 208,799 0.9 %
Total equity securities available for sale 818,738 3.5 %
Cash and cash equivalents (2) 2,182,020 9.4 %
Real estate 1,842,400 7.9 %
Investment funds (3) 1,400,140 6.0 %
Arbitrage trading account 860,339 3.7 %
Loans receivable 115,496 0.5 %
Net invested assets $ 23,292,268 100.0 %

(1)Total fixed maturity securities had an average rating of AA- and an average duration of 2.3 years, including cash and cash equivalents.
(2)Cash and cash equivalents includes trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.
(3)Investment funds are net of related liabilities of $0.8 million.

Disclaimer

W.R. Berkley Corporation published this content on 21 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2021 20:23:22 UTC.


ę Publicnow 2021
All news about W. R. BERKLEY CORPORATION
11/23WR Berkley Climbs After Goldman Sachs Starts Coverage With Buy Rating
MT
11/23Goldman Sachs Starts WR Berkley at Buy With $99 Price Target
MT
11/19WALL STREET STOCK EXCHANGE : Europe’s Covid wave weighs on indexes
11/19ANALYST RECOMMENDATIONS : American Software, Chubb, Jacobs, Range Resources, Willis Tower...
11/18Jefferies Initiates Coverage of W.R. Berkley With Hold Rating, $82 Price Target
MT
11/12BERKLEY W R CORP : Change in Directors or Principal Officers, Financial Statements and Exh..
AQ
11/05W. R. Berkley Corporation Declares Special and Regular Quarterly Cash Dividends
BU
11/05W. R. Berkley Corporation Declares Regular Quarterly Cash Dividend, Payable on December..
CI
11/05W. R. Berkley Corporation Declares Special Cash Dividend, Payable December 22, 2021
CI
11/04BERKLEY W R CORP Management's Discussion and Analysis of Financial Condition and Resul..
AQ
More news
Analyst Recommendations on W. R. BERKLEY CORPORATION
More recommendations
Financials (USD)
Sales 2021 8 029 M - -
Net income 2021 959 M - -
Net Debt 2021 - - -
P/E ratio 2021 15,5x
Yield 2021 2,03%
Capitalization 14 214 M 14 214 M -
Capi. / Sales 2021 1,77x
Capi. / Sales 2022 1,55x
Nbr of Employees 7 495
Free-Float 38,1%
Chart W. R. BERKLEY CORPORATION
Duration : Period :
W. R. Berkley Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends W. R. BERKLEY CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 11
Last Close Price 80,47 $
Average target price 88,27 $
Spread / Average Target 9,70%
EPS Revisions
Managers and Directors
William Robert Berkley President, Chief Executive Officer & Director
Richard Mark Baio Chief Financial Officer, Treasurer & EVP
William Robert Berkley Executive Chairman
Terrence Michael Walker Chief Information Officer
Scott Mansolillo Chief Compliance Officer & Senior Vice President
Sector and Competitors
1st jan.Capi. (M$)
W. R. BERKLEY CORPORATION21.15%14 214
AMERICAN INTERNATIONAL GROUP, INC.48.05%46 538
THE TRAVELERS COMPANIES9.47%37 802
TOKIO MARINE HOLDINGS, INC.12.51%35 921
THE ALLSTATE CORPORATION4.72%33 002
SAMPO OYJ23.72%26 634