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Dec 31, 2023

W. R. Berkley Q4 2023 Earnings Report

W. R. Berkley's fourth quarter return on equity was 23.6%. The company reported record net investment income and growth in net premiums written.

Key Takeaways

W. R. Berkley Corporation reported a strong fourth quarter in 2023, with a 23.6% annualized return on beginning equity. The quarter was marked by growth in net premiums written, record underwriting performance, and net investment income. Book value per share grew by 11.6% during the quarter, before capital returned to shareholders.

Return on equity of 23.6%.

Book value per share grew 11.6%, before dividends and share repurchases.

Record net investment income of $313.3 million driven by 52.9% increase in the core portfolio.

Net premiums written growth increased to 12.0%.

Total Revenue
$3.22B
Previous year: $3.01B
+6.9%
EPS
$0.97
Previous year: $0.77
+26.0%
GAAP combined ratio
88.4%
Previous year: 88.4%
+0.0%
Gross Profit
$2.28B
Previous year: $380M
+499.8%
Cash and Equivalents
$1.36B
Previous year: $1.69B
-19.2%
Total Assets
$37.2B
Previous year: $33.9B
+9.9%

W. R. Berkley

W. R. Berkley

Forward Guidance

W. R. Berkley anticipates 2024 will continue to be rewarding for its shareholders and views the current property and casualty insurance and investment environments as favorable to its business model. The company is confident that it will continue to deliver superior long-term risk-adjusted returns and increase value to shareholders in 2024 and beyond.

Positive Outlook

  • Company anticipates 2024 will continue to be rewarding for shareholders.
  • Current property and casualty insurance and investment environments are favorable to the business model.
  • Company is confident that it will continue to deliver superior long-term risk-adjusted returns.
  • Company expects to increase value to shareholders in 2024 and beyond.
  • Record operating cash flow positions the company well for future investment income growth.

Challenges Ahead

  • Cyclical nature of the property casualty industry
  • Impact of significant competition, including new entrants to the industry
  • Long-tail and potentially volatile nature of the insurance and reinsurance business
  • General economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets
  • Potential effect of legislative, regulatory, accounting or other initiatives taken in response to such conditions, on our results and financial condition