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Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2017
Condensed Financial Information Disclosure [Abstract]  
Schedule II - Condensed Financial Information of Registrant
Schedule II
W. R. Berkley Corporation
Condensed Financial Information of Registrant
Balance Sheets (Parent Company)


 
December 31,
(In thousands)
2019
 
2018
Assets:
 

 
 

Cash and cash equivalents
$
389,801

 
$
83,950

Fixed maturity securities available for sale at fair value (cost $718,642 and $1,317,058 at December 31, 2019 and 2018, respectively)
723,959

 
1,307,347

Loans receivable
55,794

 
51,544

Equity securities, at fair value (cost $3,430 in 2019 and $3,430 in 2018)
3,430

 
3,430

Investment in subsidiaries
7,623,639

 
6,786,999

Current federal income taxes
18,857

 
9,068

Deferred federal income taxes
—

 
66,995

Property, furniture and equipment at cost, less accumulated depreciation
12,323

 
13,391

Other assets
13,294

 
12,340

Total assets
$
8,841,097

 
$
8,335,064

Liabilities and stockholders’ equity:
 

 
 
Liabilities:
 

 
 
Due to subsidiaries
$
107,245

 
$
116,125

Other liabilities
118,593

 
115,562

Deferred federal income taxes
22,846

 
—

Subordinated debentures
1,198,704

 
907,491

Senior notes
1,318,770

 
1,758,035

Total liabilities
2,766,158

 
2,897,213

Stockholders’ equity:
 

 
 
Preferred stock
—

 
—

Common stock
70,535

 
70,535

Additional paid-in capital
1,056,042

 
1,039,633

Retained earnings (including accumulated undistributed net income of subsidiaries of $5,564,980 and $5,068,139 at December 31, 2019 and 2018, respectively)
7,932,372

 
7,558,619

Accumulated other comprehensive income
(257,299
)
 
(510,470
)
Treasury stock, at cost
(2,726,711
)
 
(2,720,466
)
Total stockholders’ equity
6,074,939

 
5,437,851

Total liabilities and stockholders’ equity
$
8,841,097

 
$
8,335,064

________________
See Report of Independent Registered Public Accounting Firm and note to condensed financial information.

Schedule II, Continued

W. R. Berkley Corporation
Condensed Financial Information of Registrant, Continued
Statements of Income (Parent Company)

 
Year Ended December 31,
(In thousands)
2019
 
2018
 
2017
Management fees and investment income including dividends from subsidiaries of$416,027, $639,477, and $694,462 for the years ended December 31, 2019, 2018 and 2017, respectively
$
470,773

 
$
697,687

 
$
738,923

Net investment gains (losses)
850

 
(1,685
)
 
(4,286
)
Other income
117

 
530

 
805

  Total revenues
471,740

 
696,532

 
735,442

Operating costs and expense
204,812

 
191,873

 
182,145

Interest expense
148,282

 
155,082

 
146,929

Income before federal income taxes
118,646

 
349,577

 
406,368

Federal income taxes:
 

 
 

 
 

Federal income taxes provided by subsidiaries on a separate return basis
207,647

 
409,439

 
115,597

Federal income tax expense on a consolidated return basis
(141,190
)
 
(113,138
)
 
(195,261
)
  Net federal income tax expense (benefit)
66,457

 
296,301

 
(79,664
)
Income before undistributed equity in net income of subsidiaries
185,103

 
645,878

 
326,704

Equity in undistributed net income (loss) of subsidiaries
496,841

 
(5,129
)
 
222,390

  Net income
$
681,944

 
$
640,749

 
$
549,094

________________
See Report of Independent Registered Public Accounting Firm and note to condensed financial information.
Schedule II, Continued

W. R. Berkley Corporation
Condensed Financial Information of Registrant, Continued
Statements of Cash Flows (Parent Company)

 
Year Ended December 31,
(In thousands)
2019
 
2018
 
2017
Cash flows from operating activities:
 

 
 

 
 

Net income
$
681,944

 
$
640,749

 
$
549,094

Adjustments to reconcile net income to net cash from operating activities:
 
 
 
 
 
Net investment (gains) losses
(850
)
 
1,685

 
4,286

Depreciation and amortization
7,058

 
9,441

 
2,039

Equity in undistributed earnings of subsidiaries
(496,841
)
 
5,129

 
(222,390
)
Tax payments received from subsidiaries
192,407

 
282,084

 
98,313

Federal income taxes provided by subsidiaries on a separate return basis
(207,646
)
 
(409,439
)
 
(115,597
)
Stock incentive plans
28,389

 
28,531

 
38,075

Change in:
 
 
 
 
 
Federal income taxes
11,841

 
(77,415
)
 
2,711

Other assets
(5,343
)
 
1,348

 
(877
)
Other liabilities
11,866

 
109,016

 
18,661

Accrued investment income
4,395

 
(2,870
)
 
(2,818
)
Net cash from operating activities
227,220

 
588,259

 
371,497

Cash from (used) in investing activities:
 

 
 

 
 

Proceeds from sales of fixed maturity securities
619,334

 
668,447

 
849,330

Proceeds from maturities and prepayments of fixed maturity securities
435,473

 
255,528

 
316,611

Cost of purchases of fixed maturity securities
(459,418
)
 
(1,188,821
)
 
(1,329,379
)
Change in loans receivable
(4,250
)
 
1,475

 
(29,600
)
Investments in and advances to subsidiaries, net
(36,170
)
 
(184,597
)
 
(21,139
)
Change in balance due to security broker
245

 
—

 
—

Net additions to real estate, furniture & equipment
(112
)
 
(264
)
 
(1,055
)
Other, net
142

 
—

 
—

Net cash from (used in) investing activities
555,244

 
(448,232
)
 
(215,232
)
Cash used in financing activities:
 

 
 

 
 

Net proceeds from issuance of senior notes
290,454

 
178,562

 
—

Repayment of senior notes
(440,651
)
 
—

 
—

Purchase of common treasury shares
(18,225
)
 
(24,750
)
 
(47,807
)
Cash dividends to common stockholders
(308,191
)
 
(254,951
)
 
(188,199
)
Net cash used in financing activities
(476,613
)
 
(101,139
)
 
(236,006
)
Net increase (decrease) in cash and cash equivalents
305,851

 
38,888

 
(79,741
)
Cash and cash equivalents at beginning of year
83,950

 
45,062

 
124,803

Cash and cash equivalents at end of year
$
389,801

 
$
83,950

 
$
45,062

________________
See Report of Independent Registered Public Accounting Firm and note to condensed financial information.
W. R. Berkley Corporation
Condensed Financial Information of Registrant, Continued
December 31, 2019
Note to Condensed Financial Information (Parent Company)
The accompanying condensed financial information should be read in conjunction with the notes to consolidated financial statements included elsewhere herein. Reclassifications have been made in the 2018 and 2017 financial statements as originally reported to conform them to the presentation of the 2019 financial statements.
The Company files a consolidated federal tax return with the results of its domestic insurance subsidiaries included on a statutory basis. Under present Company policy, federal income taxes payable by subsidiary companies on a separate-return basis are paid to W. R. Berkley Corporation, and the Company pays the tax due on a consolidated return basis.