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Mar 31, 2020

W. R. Berkley Q1 2020 Earnings Report

W. R. Berkley Corporation reported a net loss for Q1 2020, impacted by the COVID-19 pandemic, but operating fundamentals remained strong with net premiums written growing at their fastest rate in five years.

Key Takeaways

W. R. Berkley Corporation reported a net loss of $4.418 million for the first quarter of 2020, compared to a net income of $180.722 million in the same period of 2019. The global COVID-19 pandemic had an adverse impact on first-quarter net income. However, operating income remained strong at $132.623 million, and net premiums written grew at their fastest rate in five years.

Net premiums written increased 8.0%.

Average rate increases excluding workers' compensation were approximately 12%.

The accident year combined ratio excluding catastrophe losses was 91.9%, while the reported combined ratio was 96.9%.

Total capital returned to shareholders was $223 million, including $203 million of share repurchases and $20 million of ordinary dividends.

Total Revenue
$1.81B
Previous year: $1.94B
-6.5%
EPS
$0.31
Previous year: $0.42
-26.2%
Gross Premiums Written
$2.23B
Previous year: $2.05B
+9.0%
Net Premiums Written
$1.85B
Previous year: $1.71B
+8.0%
Accident year combined ratio
91.9%
Gross Profit
$1.25B
Previous year: $1.36B
-7.5%
Cash and Equivalents
$1.1B
Previous year: $937M
+16.9%
Total Assets
$26.1B
Previous year: $25.6B
+2.0%

W. R. Berkley

W. R. Berkley

Forward Guidance

The balance of 2020 will have many challenges, yet our commitments to honoring our contractual obligations to our customers and delivering superior long-term risk-adjusted returns to our shareholders remain unwavering. Although the financial markets remain turbulent and the economy will take some time to restart, our Company is well positioned from the perspectives of risk and cycle management as well as financial strength and flexibility.