Commission File Number |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
None | ||||||||
Former name, former address and former fiscal year, if changed since last report. |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
By: | /s/ Richard M. Baio | |||||||
Name: | Richard M. Baio | |||||||
Title: | Executive Vice President | |||||||
Chief Financial Officer | ||||||||
NEWS RELEASE | |||||||||||
W. R. Berkley Corporation 475 Steamboat Road Greenwich, Connecticut 06830 (203) 629-3000 | |||||||||||
First Quarter | ||||||||||||||
2021 | 2020 | |||||||||||||
Gross premiums written | $ | 2,484,712 | $ | 2,231,372 | ||||||||||
Net premiums written | 2,050,038 | 1,845,846 | ||||||||||||
Net income (loss) to common stockholders | 229,525 | (4,418) | ||||||||||||
Net income (loss) per diluted share | 1.23 | (0.02) | ||||||||||||
Operating income (1) | 201,780 | 132,623 | ||||||||||||
Operating income per diluted share | 1.08 | 0.69 | ||||||||||||
Return on equity (2) | 14.5 | % | (0.3) | % |
First Quarter | ||||||||||||||
2021 | 2020 | |||||||||||||
Revenues: | ||||||||||||||
Net premiums written | $ | 2,050,038 | $ | 1,845,846 | ||||||||||
Change in unearned premiums | (200,082) | (154,428) | ||||||||||||
Net premiums earned | 1,849,956 | 1,691,418 | ||||||||||||
Net investment income | 158,577 | 174,763 | ||||||||||||
Net investment gains (losses): | ||||||||||||||
Net realized and unrealized gains (losses) on investments | 51,759 | (143,285) | ||||||||||||
Change in allowance for credit losses on investments | (16,920) | (33,889) | ||||||||||||
Net investment gains (losses) | 34,839 | (177,174) | ||||||||||||
Revenues from non-insurance businesses | 87,430 | 93,729 | ||||||||||||
Insurance service fees | 25,808 | 25,751 | ||||||||||||
Other income | 259 | 2,123 | ||||||||||||
Total revenues | 2,156,869 | 1,810,610 | ||||||||||||
Expenses: | ||||||||||||||
Losses and loss expenses | 1,121,592 | 1,107,253 | ||||||||||||
Other operating costs and expenses | 616,268 | 578,334 | ||||||||||||
Expenses from non-insurance businesses | 86,290 | 94,757 | ||||||||||||
Interest expense | 36,651 | 36,734 | ||||||||||||
Total expenses | 1,860,801 | 1,817,078 | ||||||||||||
Income (loss) before income taxes | 296,068 | (6,468) | ||||||||||||
Income tax (expense) benefit | (64,352) | 2,942 | ||||||||||||
Net income (loss) before noncontrolling interests | 231,716 | (3,526) | ||||||||||||
Noncontrolling interests | (2,191) | (892) | ||||||||||||
Net income (loss) to common stockholders | $ | 229,525 | $ | (4,418) | ||||||||||
Net income (loss) per share: | ||||||||||||||
Basic | $ | 1.24 | $ | (0.02) | ||||||||||
Diluted | $ | 1.23 | $ | (0.02) | ||||||||||
Average shares outstanding (1): | ||||||||||||||
Basic | 185,195 | 190,287 | ||||||||||||
Diluted (2) | 186,830 | 190,287 |
First Quarter | ||||||||||||||
2021 | 2020 | |||||||||||||
Insurance: | ||||||||||||||
Gross premiums written | $ | 2,140,013 | $ | 1,941,809 | ||||||||||
Net premiums written | 1,739,824 | 1,583,318 | ||||||||||||
Premiums earned | 1,604,979 | 1,484,955 | ||||||||||||
Pre-tax income | 257,109 | 175,947 | ||||||||||||
Loss ratio | 61.3% | 65.1% | ||||||||||||
Expense ratio | 29.3% | 31.3% | ||||||||||||
GAAP combined ratio | 90.6% | 96.4% | ||||||||||||
Reinsurance & Monoline Excess: | ||||||||||||||
Gross premiums written | $ | 344,699 | $ | 289,563 | ||||||||||
Net premiums written | 310,214 | 262,528 | ||||||||||||
Premiums earned | 244,977 | 206,463 | ||||||||||||
Pre-tax income | 68,649 | 36,514 | ||||||||||||
Loss ratio | 56.5% | 68.3% | ||||||||||||
Expense ratio | 30.9% | 32.3% | ||||||||||||
GAAP combined ratio | 87.4% | 100.6% | ||||||||||||
Corporate and Eliminations: | ||||||||||||||
Net investment gains (losses) | $ | 34,839 | $ | (177,174) | ||||||||||
Interest expense | (36,651) | (36,734) | ||||||||||||
Other revenues and expenses | (27,878) | (5,021) | ||||||||||||
Pre-tax loss | (29,690) | (218,929) | ||||||||||||
Consolidated: | ||||||||||||||
Gross premiums written | $ | 2,484,712 | $ | 2,231,372 | ||||||||||
Net premiums written | 2,050,038 | 1,845,846 | ||||||||||||
Premiums earned | 1,849,956 | 1,691,418 | ||||||||||||
Pre-tax income (loss) | 296,068 | (6,468) | ||||||||||||
Loss ratio | 60.6% | 65.5% | ||||||||||||
Expense ratio | 29.5% | 31.4% | ||||||||||||
GAAP combined ratio | 90.1% | 96.9% |
First Quarter | ||||||||||||||
2021 | 2020 | |||||||||||||
Net premiums written: | ||||||||||||||
Other liability | $ | 657,779 | $ | 581,644 | ||||||||||
Short-tail lines (1) | 325,051 | 307,889 | ||||||||||||
Workers' compensation | 286,724 | 327,286 | ||||||||||||
Commercial automobile | 248,567 | 205,427 | ||||||||||||
Professional liability | 221,703 | 161,072 | ||||||||||||
Total Insurance | 1,739,824 | 1,583,318 | ||||||||||||
Casualty reinsurance | 174,864 | 143,461 | ||||||||||||
Monoline excess | 85,509 | 75,267 | ||||||||||||
Property reinsurance | 49,841 | 43,800 | ||||||||||||
Total Reinsurance & Monoline Excess | 310,214 | 262,528 | ||||||||||||
Total | $ | 2,050,038 | $ | 1,845,846 | ||||||||||
Current accident year losses from catastrophes (including COVID-19 related losses): | ||||||||||||||
Insurance | $ | 32,829 | $ | 56,580 | ||||||||||
Reinsurance & Monoline Excess | 3,000 | 22,193 | ||||||||||||
Total | $ | 35,829 | $ | 78,773 | ||||||||||
Net investment income: | ||||||||||||||
Core portfolio (2) | $ | 100,568 | $ | 133,048 | ||||||||||
Investment funds | 38,935 | 40,577 | ||||||||||||
Arbitrage trading account | 19,074 | 1,138 | ||||||||||||
Total | $ | 158,577 | $ | 174,763 | ||||||||||
Net realized and unrealized gains (losses) on investments: | ||||||||||||||
Net realized gains on investments | $ | 76,094 | $ | 11,182 | ||||||||||
Change in unrealized gains (losses) on equity securities | (24,335) | (154,467) | ||||||||||||
Total | $ | 51,759 | $ | (143,285) | ||||||||||
Other operating costs and expenses: | ||||||||||||||
Policy acquisition and insurance operating expenses | $ | 545,750 | $ | 531,924 | ||||||||||
Insurance service expenses | 20,786 | 22,573 | ||||||||||||
Net foreign currency gains | (5,594) | (21,541) | ||||||||||||
Debt extinguishment costs | 3,617 | — | ||||||||||||
Other costs and expenses | 51,709 | 45,378 | ||||||||||||
Total | $ | 616,268 | $ | 578,334 | ||||||||||
Cash flow from operations | $ | 310,990 | $ | 152,570 | ||||||||||
Reconciliation of net income (loss) to operating income: | ||||||||||||||
Net income | $ | 229,525 | $ | (4,418) | ||||||||||
Pre-tax investment (gains) losses, net of related expenses | (33,302) | 177,592 | ||||||||||||
Income tax expense (benefit) | 5,557 | (40,551) | ||||||||||||
Operating income after-tax (3) | $ | 201,780 | $ | 132,623 |
March 31, 2021 | December 31, 2020 | ||||||||||
Net invested assets (1) | $ | 22,155,935 | $ | 21,370,503 | |||||||
Total assets | 29,791,274 | 28,571,965 | |||||||||
Reserves for losses and loss expenses | 14,080,528 | 13,784,430 | |||||||||
Senior notes and other debt | 2,021,142 | 1,623,025 | |||||||||
Subordinated debentures | 1,289,272 | 1,102,309 | |||||||||
Common stockholders’ equity (2) | 6,414,600 | 6,310,802 | |||||||||
Common stock outstanding (3) | 177,373 | 177,825 | |||||||||
Book value per share (4) | 36.16 | 35.49 | |||||||||
Tangible book value per share (4) | 34.90 | 34.22 |
Carrying Value | Percent of Total | |||||||||||||
Fixed maturity securities: | ||||||||||||||
United States government and government agencies | $ | 555,714 | 2.5 | % | ||||||||||
State and municipal: | ||||||||||||||
Special revenue | $ | 2,206,460 | 10.0 | % | ||||||||||
State general obligation | 469,681 | 2.1 | % | |||||||||||
Local general obligation | 467,053 | 2.1 | % | |||||||||||
Pre-refunded | 254,040 | 1.1 | % | |||||||||||
Corporate backed | 172,339 | 0.8 | % | |||||||||||
Total state and municipal | 3,569,573 | 16.1 | % | |||||||||||
Mortgage-backed securities: | ||||||||||||||
Agency | 747,559 | 3.4 | % | |||||||||||
Commercial | 179,286 | 0.8 | % | |||||||||||
Residential - Prime | 147,220 | 0.7 | % | |||||||||||
Residential - Alt A | 8,060 | — | % | |||||||||||
Total mortgage-backed securities | 1,082,125 | 4.9 | % | |||||||||||
Asset-backed securities | 3,944,638 | 17.8 | % | |||||||||||
Corporate: | ||||||||||||||
Industrial | 3,060,663 | 13.8 | % | |||||||||||
Financial | 1,564,369 | 7.1 | % | |||||||||||
Utilities | 439,329 | 2.0 | % | |||||||||||
Other | 153,828 | 0.7 | % | |||||||||||
Total corporate | 5,218,189 | 23.6 | % | |||||||||||
Foreign government | 1,029,879 | 4.6 | % | |||||||||||
Total fixed maturity securities (1) | 15,400,118 | 69.5 | % | |||||||||||
Equity securities available for sale: | ||||||||||||||
Common stocks | 392,163 | 1.8 | % | |||||||||||
Preferred stocks | 229,466 | 1.0 | % | |||||||||||
Total equity securities available for sale | 621,629 | 2.8 | % | |||||||||||
Cash and cash equivalents (2) | 2,123,154 | 9.6 | % | |||||||||||
Real estate | 1,961,212 | 8.9 | % | |||||||||||
Investment funds (3) | 1,358,205 | 6.1 | % | |||||||||||
Arbitrage trading account | 614,721 | 2.8 | % | |||||||||||
Loans receivable | 76,896 | 0.3 | % | |||||||||||
Net invested assets | $ | 22,155,935 | 100.0 | % |
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