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Dec 31, 2020

W. R. Berkley Q4 2020 Earnings Report

W. R. Berkley Corporation reported strong Q4 2020 results with record net income and a return on equity of 20.6%.

Key Takeaways

W. R. Berkley Corporation reported an outstanding fourth quarter, achieving a record net income of $312.2 million and a return on equity of 20.6%. Gross premiums written grew by 9.3%. The company's combined ratio was 90.9%, and underwriting income increased by 44.2% to $165.4 million.

Net income reached an all-time record of $312.2 million.

Return on equity was 20.6%.

Gross and net premiums written increased by 9.3% and 8.2%, respectively.

Underwriting income increased 44.2% to $165.4 million.

Total Revenue
$2.31B
Previous year: $1.98B
+17.0%
EPS
$0.41
Previous year: $0.27
+51.9%
Gross Profit
$399M
Previous year: -$384M
-203.9%
Cash and Equivalents
$2.89B
Previous year: $1.38B
+108.8%
Total Assets
$28.6B
Previous year: $26.6B
+7.4%

W. R. Berkley

W. R. Berkley

Forward Guidance

The Company expects that 2021 will provide opportunities for margin improvement, with no signs of rate increases moderating.

Positive Outlook

  • Rate increases continued to accelerate throughout the year.
  • Total return investment strategy delivered strong performance.
  • Net investment income grew 32%.
  • Company delivered a superior risk-adjusted return.
  • No signs of rate increases moderating.

Challenges Ahead

  • Global pandemic continues.
  • Frequent catastrophe losses continue.
  • Social inflation continues.
  • Low interest rates continue.
  • Industry’s need for disciplined underwriting and additional rate continues.