WR Berkley Q3 2024 net income jumps to $365.6 million

WR Berkley Corporation has announced its third-quarter financial results for 2024, reporting growth across key metrics.

The company reported gross premiums written of $3.63 billion in Q3 2024, up from $3.35 billion in the same quarter of 2023. For the first nine months of 2024, gross premiums written totaled $10.71 billion, an increase from $9.74 billion in 2023.

Net premiums written for the quarter were $3.06 billion, up from $2.85 billion in the prior year. Year-to-date net premiums written reached $9.04 billion, compared to $8.23 billion for the same period in 2023.

Net income available to common stockholders was $365.6 million for the third quarter, an increase from $333.6 million in Q3 2023. For the first nine months of 2024, net income reached $1.18 billion, up from $984 million in 2023.

Net income per diluted share was $0.91 for the quarter, compared to $0.82 last year, while the year-to-date figure was $2.92, up from $2.39 in 2023.

Operating income for Q3 2024 was $373.7 million, up from $366.6 million in the same quarter of 2023. Operating income for the first nine months of 2024 reached $1.22 billion, compared to $952.9 million in 2023. Operating income per diluted share was $0.93 for the quarter, compared to $0.90 last year, while the year-to-date figure was $3.01, up from $2.32 in 2023.

The company’s return on equity for Q3 2024 was 19.6%, down slightly from 19.8% in Q3 2023. The operating return on equity was 20.0%, compared to 21.7% in the prior year. Year-to-date return on equity was 21.1%, up from 19.4% in 2023, while the operating return on equity was 21.7%, up from 18.8%.

Highlights from the third quarter included net investment income growth of 19.5% to $323.8 million, compared to the same quarter last year. The current accident year combined ratio, before catastrophe losses, was 87.6%, while the reported combined ratio was 90.9%. Average rate increases, excluding workers’ compensation, were around 8.4%.

The company also noted that book value per share grew by 10% before dividends and share repurchases. During the quarter, a total of $138.3 million was returned to shareholders, which included $95.3 million in special dividends, $30.5 million in regular dividends, and $12.5 million in share repurchases. Operating cash flow reached a record $1.2 billion, a 15.2% increase from the prior year.

WR Berkley comments on its latest financial results

In a statement, the company attributed its strong third-quarter performance to continued underwriting margins and rising investment income, contributing to a 19.6% annualized return on beginning-of-year common stockholders’ equity.

The company emphasized its strategy of disciplined growth, focusing on business expected to meet or exceed targeted risk-adjusted returns while managing rate adequacy, loss trends, and exposure.

The 90.9% calendar year combined ratio reflected below-average volatility, despite the occurrence of several severe market-wide events.

WR Berkley highlighted that its investment income growth was driven by an increase in fixed-maturity income, with the company expecting the new money rate to remain higher than the current yield on its US fixed-maturity securities. The company also reported continued strong cash flow, positioning it for further investment income growth.

The company noted that its ability to navigate varying underwriting and investment environments has resulted in strong returns on equity and below-average volatility, creating significant shareholder value. It expects to continue delivering strong risk-adjusted returns through the remainder of 2024.

What are your thoughts on this story? Please feel free to share your comments below.