-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ANpj+gnLi8bc58AVAoo1yp+lVqe6q8JxQThrQeUVkzfygszNhBy9vYBKc69e1YBj nu/vH2hKKDagJmyaibZnOw== 0000914039-98-000326.txt : 19980814 0000914039-98-000326.hdr.sgml : 19980814 ACCESSION NUMBER: 0000914039-98-000326 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980813 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BERKLEY W R CORP CENTRAL INDEX KEY: 0000011544 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 221867895 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-07849 FILM NUMBER: 98685451 BUSINESS ADDRESS: STREET 1: 165 MASON ST STREET 2: P O BOX 2518 CITY: GREENWICH STATE: CT ZIP: 06836-2518 BUSINESS PHONE: 2036293000 MAIL ADDRESS: STREET 1: 165 MASON ST STREET 2: PO BOX 2518 CITY: GREENWICH STATE: CT ZIP: 06836-2518 10-Q 1 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark one) /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period. . . . . . . . June 30, 1998 or / / Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the Transition Period from ____ to ____. Commission File Number 0-7849 W. R. BERKLEY CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 22-1867895 - -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 165 Mason Street, Greenwich, Connecticut 06836-2518 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (203) 629-3000 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) None - -------------------------------------------------------------------------------- Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes /X/ No / / Number of shares of common stock, $.20 par value, outstanding as of August 3, 1998: 28,208,175. 2 W. R. Berkley Corporation and Subsidiaries Consolidated Balance Sheets (Dollars in thousands)
June 30, December 31, 1998 1997 ----------- ----------- (Unaudited) Assets Investments: Invested cash $ 536,854 $ 417,967 Fixed maturity securities: Held to maturity, at cost (fair value $186,690 and $194,919) 174,065 182,172 Available for sale at fair value (cost $2,154,402 and $2,240,901) 2,237,115 2,322,971 Equity securities, at fair value: Available for sale (cost $69,758 and $76,134) 77,202 86,243 Trading account (cost $419,152 and $301,136) 425,434 311,969 Cash 17,393 21,669 Premiums and fees receivable 387,975 331,774 Due from reinsurers 476,247 432,516 Accrued investment income 36,655 36,930 Prepaid reinsurance premiums 83,161 72,148 Deferred policy acquisition costs 161,972 145,737 Real estate, furniture & equipment at cost, less accumulated depreciation 135,054 126,831 Excess of cost over net assets acquired 72,047 73,142 Other assets 37,011 37,215 ----------- ----------- $ 4,858,185 $ 4,599,284 =========== =========== Liabilities, Reserves, Debt and Stockholders' Equity Liabilities and reserves: Reserves for losses and loss expenses $ 2,011,465 $ 1,909,688 Unearned premiums 652,437 589,384 Due to reinsurers 113,363 95,140 Deferred Federal income taxes 20,421 32,887 Trading securities sold but not yet purchased at fair value (proceeds $312,786 and $162,360) 309,819 159,456 Other liabilities 218,356 242,721 ----------- ----------- 3,325,861 3,029,276 ----------- ----------- Long-term debt 386,279 390,415 ----------- ----------- Company-obligated mandatorily redeemable capital securities of a subsidiary trust holding solely 8.197% junior subordinated debentures of the Corporation due December 15, 2045 207,966 207,944 Minority interest 24,017 24,357 ----------- ----------- Stockholders' equity: Preferred stock, par value $.10 per share: Authorized 5,000,000 shares: 7 3/8% Series A Cumulative Redeemable Preferred Stock 653,952 shares issued and outstanding 65 65 Common stock, par value $.20 per share: Authorized 80,000,000 shares, issued and outstanding, net of treasury shares, 28,206,950 and 29,568,335 shares 7,281 7,281 Additional paid-in capital 429,328 428,760 Retained earnings 601,847 569,160 Accumulated other comprehensive income 56,278 58,206 Treasury stock, at cost, 8,197,117 and 6,835,510 shares (180,737) (116,180) ----------- ----------- 914,062 947,292 ----------- ----------- $ 4,858,185 $ 4,599,284 =========== ===========
See accompanying notes to consolidated financial statements. 1 3 W. R. Berkley Corporation and Subsidiaries Consolidated Statements of Operations (Unaudited) (Amounts in thousands except per share data)
For the Three Months For the Six Months Ended June 30, Ended June 30, --------------------------- --------------------------- 1998 1997 1998 1997 --------- --------- --------- --------- Revenues: Net premiums written $ 339,826 $ 300,759 $ 673,658 $ 584,769 Increase in net unearned premiums (20,838) (28,843) (52,037) (55,569) --------- --------- --------- --------- Premiums earned 318,988 271,916 621,621 529,200 Net investment income 52,384 47,587 108,778 92,418 Management fees and commission income 17,775 17,890 36,363 35,420 Realized gains (losses) on investments 7,090 (2,146) 10,507 7,194 Other income 673 679 2,916 1,516 --------- --------- --------- --------- Total revenues 396,910 335,926 780,185 665,748 Operating costs and expenses: Losses and loss expenses (217,578) (181,267) (422,780) (350,860) Other operating costs and expenses (139,043) (116,498) (272,223) (226,511) Interest expense (12,158) (12,237) (24,331) (24,455) --------- --------- --------- --------- Income before income taxes and minority interest 28,131 25,924 60,851 63,922 Federal income tax expense (6,503) (5,564) (13,700) (15,359) --------- --------- --------- --------- Income before minority interest 21,628 20,360 47,151 48,563 Minority interest 1,115 273 1,265 614 --------- --------- --------- --------- Net income before preferred dividends 22,743 20,633 48,416 49,177 Preferred dividends (1,887) (2,008) (3,774) (4,125) --------- --------- --------- --------- Net income before extraordinary loss 20,856 18,625 44,642 45,052 Extraordinary loss on early extinguishment of long-term debt (net of taxes of $1,390 and $2,701) (2,582) -- (5,017) -- --------- --------- --------- --------- Net income attributable to common stockholders $ 18,274 $ 18,625 $ 39,625 $ 45,052 ========= ========= ========= ========= Earning per share: Basic: Net income before extraordinary loss $ .73 $ .63 $ 1.54 $ 1.53 Extraordinary loss on early extinguishment of long-term debt (.09) -- (.17) -- --------- --------- --------- --------- Net income attributable to common stockholders $ .64 $ .63 $ 1.37 $ 1.53 ========= ========= ========= ========= Diluted: Net income before extraordinary loss $ .70 $ .62 $ 1.48 $ 1.50 Extraordinary loss on early extinguishment of long-term debt (.09) -- (.17) -- --------- --------- --------- --------- Net income attributable to common stockholders $ .61 $ .62 $ 1.31 $ 1.50 ========= ========= ========= ========= Average shares outstanding: Basic 28,469 29,480 29,024 29,471 ========= ========= ========= ========= Diluted 29,734 30,025 30,271 30,018 ========= ========= ========= =========
See accompanying notes to consolidated financial statements. 2 4 W. R. Berkley Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited) (Dollars in thousands)
For the Six Months Ended June 30, --------------------------- 1998 1997 --------- --------- Cash flows from operating activities: Net income before preferred dividends and extraordinary items $ 48,416 $ 49,177 Adjustments to reconcile net income to cash flows from operating activities: Minority interest (1,264) (614) Increase in reserves for losses and loss expenses, net of due to/from reinsurers 76,269 54,587 Depreciation and amortization 12,423 2,396 Change in unearned premiums and prepaid reinsurance premiums 52,040 55,569 Increase in premiums and fees receivable (77,376) (66,704) Change in Federal income taxes (2,132) (5,916) Change in deferred acquisition cost (16,235) (17,535) Realized gains on investments (10,507) (7,194) Other, net (25,815) 6,266 --------- --------- Net cash flows from operating activities before trading account sales 55,819 70,032 Trading account sales, net 92,454 2,305 --------- --------- Net cash flows from operating activities 148,273 72,337 --------- --------- Cash flows from (used in) investing activities: Proceeds from sales, excluding trading account: Fixed maturity securities available for sale 384,936 279,303 Equity securities 23,538 24,398 Proceeds from maturities and prepayments of fixed maturity securities 86,456 57,094 Cost of purchases, excluding trading account: Fixed maturity securities available for sale (418,935) (419,201) Equity securities (13,871) (20,475) Change in balances due to/from security brokers 6,128 17,569 Net additions to real estate, furniture & equipment (15,623) (7,770) Other, net (290) (10,259) --------- --------- Net cash flows from (used in) investing activities 52,339 (79,341) --------- --------- Cash flows used in financing activities: Net proceeds from issuance of long-term debt 39,834 -- Purchase of treasury shares (66,044) -- Retirement of long-term debt (49,104) -- Cash dividends to common stockholders (6,803) (5,502) Cash dividends to preferred stockholders (3,658) (4,923) Repurchase of preferred stock -- (33,785) Other, net (226) 10,987 --------- --------- Net cash flows used in financing activities (86,001) (33,223) --------- --------- Net increase (decrease) in cash and invested cash 114,611 (40,227) Cash and invested cash at beginning of year 439,636 346,485 --------- --------- Cash and invested cash at end of period $ 554,247 $ 306,258 ========= ========= Supplemental disclosure of cash flow information: Interest paid $ 23,855 $ 22,855 ========= ========= Federal income taxes paid, net $ 15,825 $ 20,883 ========= =========
See accompanying notes to consolidated financial statements. 3 5 W. R. Berkley Corporation and Subsidiaries Notes to Consolidated Financial Statements June 30, 1998 (Unaudited) The accompanying consolidated financial statements should be read in conjunction with the following notes and with the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 1997. A. FEDERAL INCOME TAXES The Federal income tax provision has been computed based on the Company's estimated annual effective tax rate, which differs from the Federal income tax rate of 35% principally because of tax-exempt investment income. B. REINSURANCE CEDED The amounts of ceded reinsurance included in the statements of operations are as follows (amounts in thousands):
For the Three Months For the Six Months Ended June 30, Ended June 30, ---------------------- ------------------------ 1998 1997 1998 1997 ------- ------- -------- -------- Ceded premiums written $67,616 $65,441 $132,998 $120,520 ======= ======= ======== ======== Ceded premiums earned $63,965 $59,286 $125,870 $113,964 ======= ======= ======== ======== Ceded losses and loss expenses $41,620 $38,768 $ 94,825 $ 64,013 ======= ======= ======== ========
C. PER SHARE DATA Basic per share data is based upon the weighted average number of shares outstanding during the year. Diluted per share data reflects the potential dilution that would occur if employee stock based compensation plans were exercised. 4 6 D. Comprehensive Income In June 1997, the Financial Accounting Standard Board issued statement No. 130, "Reporting Comprehensive Income", which requires enterprises to disclose comprehensive income and its components. The differences between comprehensive income and net income are unrealized foreign exchange gains (losses) as well as unrealized gains (losses) on securities. The following is a reconciliation of comprehensive income (amounts in thousands):
For the three months For the six months Ended June 30, Ended June 30, 1998 1997 1998 1997 -------- -------- -------- -------- Net income attributable to common stockholders $ 18,274 $ 18,625 $ 39,625 $ 45,052 -------- -------- -------- -------- Other comprehensive income: Unrealized holding gains(losses)on investment securities arising during the period (4,344) 27,598 (7,991) 5,951 Less: Reclassification adjustment for gains (losses) included in net income, net of tax 4,609 (1,395) 6,830 4,676 -------- -------- -------- -------- Net change in unrealized gains during the period 265 26,203 (1,161) (1,275) Change in unrealized foreign exchange gains (losses) 225 -- (766) -- -------- -------- -------- -------- Other comprehensive income 490 26,203 (1,927) (1,275) -------- -------- -------- -------- Comprehensive income $ 18,764 $ 44,828 $ 37,698 $ 43,777 ======== ======== ======== ========
E. STOCK OPTION PLAN The Company adopted the W.R. Berkley Corporation 1992 Stock Option Plan ("the Stock Option Plan") under which 2,625,000 shares of Common Stock were reserved for issuance. In May 1997, the Corporation restated the Stock Option Plan to increase the number of shares of Common Stock authorized for issuance under the Stock Option Plan from 2,625,000 to 7,125,000. In May 1998, the Corporation issued 1,009,875 options to management of the corporation and its subsidiaries. Pursuant to the Plan, options may be granted at prices determined by the Board of Directors but not less than fair market value on the date of grant. To date, options have been granted with an exercise price equal to the average of the high and low market price on the date of grant. The following table summarizes option information, including options granted under both the 1992 and prior plans:
For the period from For the period from January 1, 1998 to January 1, 1997 to June 30, 1998 December 31, 1997 ----------------------------- ---------------------------- Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price ------ ----- ------ ----- Outstanding at beginning of period 3,218,762 29.52 2,491,222 $26.03 Granted 1,012,875 47.37 1,154,354 34.68 Exercised 87,491 23.49 280,498 20.87 Canceled 8,739 28.73 146,316 27.42 --------- ----- --------- ----- Outstanding at end of period 4,135,407 34.02 3,218,762 22.66 ========= ===== ========= ===== Options exercisable at end of period 659,095 558,210 ========= ========= Options available for future grant 2,888,303 3,892,439 ========= =========
5 7 E. STOCK OPTION PLAN (Continued) In accordance with FAS 123 the fair value of the options granted is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions for 1998 and 1997, respectively: (a) dividend yield of 1%, (b) expected volatility of 20%, (c) risk free interest rate of 5.81% and 6.70% (d) expected life of 7.5 years. The weighted average fair value of options granted during the period were $15.16 and $12.97 for the six months ended June 30, 1998 and for the year ended December 31, 1997, respectively. Had compensation costs for the Company's 1998 and 1997 grants been determined under the cost recognition alternative of FAS 123, the effect on the Company's net income and net income attributable to common shareholders would have been:
For the Six For the Six Months Ended Months Ended June 30, 1998 June 30, 1997 ------------- ------------- As reported: Net Income before preferred dividends $48,416 $49,177 ======= ======= Net Income attributable to Common Shareholders $39,625 $45,052 ======= ======= Pro forma: Net Income before preferred dividends $47,017 $48,337 ======= ======= Net Income attributable to Common Shareholders $38,226 $44,412 ======= =======
F. RECENT ACCOUNTING PRONOUNCEMENTS In June 1998, Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities", was issued and established standards for accounting and reporting of derivative instruments and hedging activities. The statement is effective for all fiscal quarters of fiscal years beginning after June 15, 1999. The Company is currently evaluating the requirements but does not expect this statement to have a material impact on it's financial position or results of operation. G. OTHER MATTERS Reclassifications have been made in the 1997 financial statements as originally reported to conform them to the presentation of the 1998 financial statements. In the opinion of management, the summarized financial information reflects all adjustments, which are necessary for a fair presentation of financial position and results of operations for the interim periods. The Company's results of operations are affected by seasonal weather variations. Accordingly, results reflected for any interim period are not necessarily indicative of those to be expected for the entire year. 6 8 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Net income attributable to common stockholders ("net income") was $18.3 million, ($.61 diluted per share) for the second quarter of 1998, in comparison with $18.6 million, ($.62 diluted per share), for the 1997 period. Net income was $39.6 million, ($1.31 diluted per share) for the six months of 1998, in comparison with $45.1 million, ($1.50 diluted per share) for the 1997 period. Operating income, which we define as net income before realized investment gains (losses) and extraordinary items, was $16.2 million, ($.55 diluted per share), in the second quarter of 1998 in comparison with $20.0 million, ($.67 diluted per share), earned in the corresponding 1997 period. Operating income was $37.8 million, ($1.25 diluted per share), in the six months of 1998, in comparison with $40.4 million, ($1.35 diluted per share), earned in the corresponding 1997 period. Second quarter net income included capital gains, net of taxes, of $4.6 million, or $.15 per share diluted, compared with capital losses of $1.4 million, or $.05 per share diluted, for the same period last year. For the first six months of 1998 capital gains were $6.8 million or $.23 per share diluted compared with $4.7 million or $.15 per share diluted recorded during the corresponding 1997 period. The Company also reported an extraordinary loss of $2.6 million and $5.0 million for the second quarter and first six months of 1998, respectively, related to the repurchase and retirement of $34.7 million (face amount) of long-term debt. There were no comparable extraordinary items in 1997. Operating Results for the Six months of 1998 As compared to the Six months of 1997 Net premiums written during the first six months of 1998 increased by 15% to $673.7 million from $584.8 million written in the comparable 1997 period. Net premiums written by the regional segment increased by $31.2 million or 10%, approximately half of this increase was due to Continental Western; the balance of the increase was generated by several of the regional units. Specialty net premiums written increased by $17.1 million or 16% due to increases in the commercial transportation and excess and surplus sectors. Net premiums written by the reinsurance operations increased by $21.4 million or 20% mainly due to an increase in prorata treaty volume. Alternative Markets net premiums written increased $1.6 million or 3% due to the commencement of operations of Key Risk Insurance Company (which underwrote business previously managed on behalf of a self-insurance association). This increase more than offset a decline in premiums written by Midwest Employers Casualty Company. International net premiums written increased $17.6 million or 95% primarily due to a 1997 acquisition. For the six months ended June 30, 1998, pre-tax investment income increased by 18% to $108.8 million. This increase was primarily due to higher earnings in our trading portfolio. In addition, an increase in average investable assets due to cash flow from operations contributed to the growth in investment income. These increases more than offset the reinvestment of funds at lower yields. (See "Liquidity and Capital Resources"). Management fees and commission income ("Management fees") consist primarily of revenues earned by the Alternative Markets segment. During the six months of 1998, management fees increased 3% from the comparable 1997 amount, principally due to the addition of a significant new account. Realized gains increased to $10.5 million from $7.2 million earned in the comparable 1997 period. Realized gains on fixed income securities result primarily from the Company's strategy of maintaining an appropriate balance between the duration of its fixed income portfolio and the duration of its liabilities; realized gains on equity securities arise primarily as a result of a variety of factors which influence the Company's valuation criteria. The majority of the 1998 realized gains were attributable to the sale of fixed maturity securities while the majority of the 1997 realized gains resulted from the sale of equity securities. 7 9 The combined ratio (on a statutory basis) of the Company's insurance operations increased to 102.5% for the six months ended June 30, 1998 from 100.2% in the comparable 1997 period due to increases in the consolidated loss ratio and expense ratio. The consolidated loss ratio (losses and loss expenses incurred expressed as a percentage of premiums earned) increased to 67.8% in 1998 from 66.4% in 1997 due to an increase in weather related losses as well as an increase in current year experience due to the effects of increased rate competition. These factors more than offset a reduction in losses incurred from significant reserve releases due to better than expected experience on business written in prior years. Other operating costs and expenses, which consist of the expenses of the Company's operating units as well as the Company's corporate and investment expenses, increased by 20% to $272.2 million. The increase in other operating costs and expenses is primarily due to substantial growth in premium volume which in turn results in an increase in underwriting expenses. The consolidated expense ratio (underwriting expenses expressed as a percentage of premiums written) increased slightly to 34.3% from 33.4%. This increase resulted from a higher growth rate in international operations, which operate at a higher expense ratio than domestic operations. Federal income tax expense in 1998 was $13.7 million (23% effective rate) as compared to a $15.4 million (24% effective rate) for the comparable 1997 period. The decrease in the effective tax rate in 1998 is due primarily to an increase in the percentage of pre-tax income that is tax-exempt. (See "Liquidity and Capital Resources"). Operating Results for the Second Quarter of 1998 as Compared to the Second Quarter of 1997 For the second quarter of 1998 as compared to the corresponding 1997 period, net premiums written increased 13%; net investment income increased 10%; and management fees and commission income decreased 1%, all for the reasons discussed above. The combined ratio (on a statutory basis) of the Company's insurance operations increased to 102.6% for the three months ended June 30, 1998 from 100.4% in the comparable 1997 period due to an increase in the consolidated loss ratio and an increase in the consolidated expense ratio. The consolidated loss ratio (losses and loss expenses incurred expressed as a percentage of premiums earned) increased to 67.8% in 1998 from 66.6% in 1997 for the reasons discussed above. Other operating costs and expenses increased 19% to $139.0 million for the three months ended June 30, 1998 and the consolidated expense ratio of the Company's insurance operations (underwriting expenses expressed as a percentage of premiums written) increased to 34.3% for the 1998 period from 33.4% for the comparable 1997, for the reasons discussed above. Liquidity and Capital Resources Cash flow from operating activities before trading account sales, was $55.8 million for the first six months of 1998 compared with $70.0 million for the same period in 1997. The lower level of cash flow was due to the effects of a higher combined ratio. The net investment portfolio, on a cost basis, decreased by $54.0 million to $2,976.3 million at June 30, 1998 from $3,030.3 million at December 31, 1997 as the purchase of treasury stock and the retirement of debt more than offset cash flow from operations. The composition of the Company's net investment portfolio distribution at June 30, 1998 as compared with December 31, 1997 was: tax-exempt securities remained at 34%; U.S. Government securities and cash equivalents (excluding trading cash) remained at 23%; corporate bonds remained at 15%; mortgage-backed securities decreased to 16% from 17%; the net trading account investments increased to 10% from 8%; and equity securities represented the balance. 8 10 In February 1998 the Company repurchased $16.3 million face value of its 9.875% and 8.7% senior notes and debentures for $19.7 million and issued $20.2 of short-term debt to finance these purchases. In April 1998 the Company repurchased an additional $18.4 million of its 9.875% and 8.7% senior debentures for $22.1 million. In April 1998 the Company issued $40 million face value 6.375% medium-term notes due April 15, 2005. The proceeds from the issuance of the medium-term notes were used to repay the short-term debt issued in connection with the repurchased debentures. In addition, a portion of the proceeds from the medium-term notes was used to retire $10 million face value of its 8.95% senior notes, which matured on May 20, 1998. For the first six months of 1998 the Company purchased 1,450,226 shares of its Common Stock leaving a balance of 1,983,074 shares available for repurchase under its current authorization. For the first six months of 1998, Stockholders' Equity decreased by approximately $33.2 million. The decrease in Stockholders' Equity is attributable to the repurchase of Common Stock, which was partially offset by an increase in Retained Earnings. Accordingly, the Company's total capitalization decreased to $1,508.2 million at June 30, 1998 and the percentage of the Company's capital attributable to debt remained at 26%. For background information concerning a further discussion of the Company's Liquidity and Capital Resources, see the Company's Annual Report on Form 10-K. Item 5. Other Information None Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits None (b) Reports on Form 8-K None 9 11 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. W. R. BERKLEY CORPORATION WILLIAM R. BERKLEY -------------------------- William R. Berkley Chairman of the Board and Chief Executive Officer ANTHONY J. DEL TUFO -------------------------- Anthony J. Del Tufo Senior Vice President, Chief Financial Officer and Treasurer 10 EX-27 2 EX-27
7 1,000 U.S. DOLLARS 6-MOS DEC-31-1998 JAN-01-1998 JUN-30-1998 1 2,237,115 174,065 186,690 502,637 0 0 2,913,817 554,247 0 161,972 4,858,185 2,011,465 652,437 0 0 594,245 0 65 7,281 906,716 4,858,185 621,621 108,778 10,507 2,916 422,780 0 0 60,851 13,700 44,642 0 (5,017) 0 39,625 1.37 1.31 0 0 0 0 0 0 0
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