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Dec 31, 2019
W. R. Berkley Q4 2019 Earnings Report
W. R. Berkley reported growth in gross premiums and an improving market.
Key Takeaways
W. R. Berkley Corporation reported fourth quarter growth in gross premiums written of 10.1%. The company saw an improving market with rate increases accelerating to approximately 9% excluding workers’ compensation.
Gross and net premiums written increased 10.1% and 9.3%, respectively.
Average rate increases excluding workers' compensation were approximately 9%.
Underwriting income increased 71.1% to $114.7 million.
Total capital returned to shareholders was $176 million, including $158 million of ordinary and special dividends and $18 million of share repurchases.
Revenue by Segment
Forward Guidance
W. R. Berkley is confident that the Company is well positioned to continue to deliver superior value to its shareholders in 2020.
Positive Outlook
- Rate increases accelerated, which is the natural progression in a hardening market, to approximately 9% excluding workers’ compensation.
- Rate increases remain robust, we expect continued opportunities to grow the top line.
- Focus on investment portfolio’s total return.
- Belief that alternative investments will continue to produce above-average long-term returns and remain a core part of our investment strategy.
- The market is at a point where those companies that have appropriately managed their businesses through the cycle will be able to grow meaningfully in this improving pricing environment.
Challenges Ahead
- Fourth quarter was challenging for alternative investments.
- Cyclical nature of the property casualty industry.
- Impact of significant competition, including new alternative entrants to the industry.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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