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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.
W. R. Berkley
W. R. Berkley
W. R. Berkley Revenue by Segment
Revenue by Segment
Insurance Revenue
CapyFin.comReinsurance & Monoline Excess Revenue
CapyFin.com 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.
- Long-tail and potentially volatile nature of the insurance and reinsurance business.
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income