Latest news with #WRBerkleyCorp
Yahoo
3 days ago
- Business
- Yahoo
WR Berkley Corp (WRB) Q2 2025 Earnings Call Highlights: Record Premiums and Investment Income ...
Net Income per Diluted Share: Increased 8.7% to $1 per share or $401 million. Annualized Return on Equity: 19.1%. Operating Earnings: $420 million or $1.05 per share, with a 20% annualized return on equity. Combined Ratio: Current accident year combined ratio before cat losses was 88.4%; calendar year combined ratio was 91.6%. Underwriting Income: $261 million. Catastrophe Losses: $99 million in Q2 2025. Net Premiums Earned: Record $3.1 billion. Net Premiums Written: Record $3.4 billion. Net Investment Income: Record $379 million. Investment Income from Fixed Maturity Securities: Improved 16.5% year over year. Effective Tax Rate: 23.2%. Stockholders' Equity: Increased by $380 million to $9.3 billion. Cash and Cash Equivalents: More than $2 billion. Financial Leverage: 23.4%. Growth in Book Value per Share: 6.8% in the quarter and 14.3% year-to-date. Release Date: July 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points WR Berkley Corp (NYSE:WRB) reported a strong performance in both underwriting income and net investment income for the second quarter of 2025. Net income per diluted share increased by 8.7% over the prior year, reaching $1 per share, with an annualized return on beginning of year equity of 19.1%. Operating earnings were $420 million or $1.05 per share, yielding an annualized return on beginning of year equity of 20%. Net premiums written increased to a record $3.4 billion in the quarter, with growth in all lines of business in both segments. Record net investment income of $379 million was achieved, benefiting from ongoing growth in invested assets and favorable new money rates on fixed maturity securities. Negative Points Catastrophe losses were $99 million in the second quarter of 2025, slightly higher than the $90 million reported in the prior year's quarter. The property insurance market is becoming more competitive, particularly for larger accounts, which may impact future growth. Foreign currency losses amounted to $55 million in the quarter due to the weakening US dollar relative to other currencies. The effective tax rate was 23.2%, exceeding the US statutory rate due to taxes on foreign earnings at higher rates and state income taxes. The reinsurance marketplace is showing signs of eroding discipline, particularly in casualty lines, which could affect future profitability. Q & A Highlights Q: Just first question on growth, just thinking about the growth potential here. I know it was a tougher quarter with the property pricing deceleration, but just curious if you all still view this as sort of a 10% to 15% growth environment? Or has the last few quarters changed that? A: Look, I think we had come out with that band if you will, probably, I don't know, call it, 18 months ago, maybe 24 months ago, if you're asking my best guesstimate at this stage in spite of the number that we saw in this quarter, my view is that it's probably somewhere between 8% and 12% would be my guess as opposed to 10% to 15%. - W. Robert Berkley, Jr., President, CEO & Director Q: You mentioned tariffs and labor costs in your opening remarks. And I just wanted to understand if you're actually seeing anything coming through if that's more of like a forward-looking statement. And obviously, it's the wider range out? A: It is a forward-looking statement. We are not seeing it in any noteworthy way in our loss activity right now. At the same time, we are conscious of the fact that, that concept of timing that I referenced in conjunction with the point that you're flagging. And we want to make sure that we're not caught flat-footed. - W. Robert Berkley, Jr., President, CEO & Director Q: My first question is actually on capital. You guys didn't buy back any shares in the quarter. Just wondering what drove that decision? A: Look, ultimately, Elyse, when the day is all done, as we've shared with you and others in the past, we have a view as to how much capital we have and what type of surplus we have at any moment in time. We have a view as to what we see is opportunities potentially before us and want to make sure that we have a surplus of gas in the tank. - W. Robert Berkley, Jr., President, CEO & Director Q: Rob, on the 15% Mitsui stake, any update on the time frame and timeline there? A: I know no more than anybody else or at least anybody else who bothered to read the SEC filings. Again, I think as I don't know if we share it or not, if we didn't, I said that we, by design, have not been privy to sort of where they stand in their process because in no way, shape or form, perhaps back to one of Elyse's points, we don't want to be encumbered or restricted in any way and our ability to repurchase stock. - W. Robert Berkley, Jr., President, CEO & Director Q: Rob, you mentioned in the write-up rate increases were 7.6% ex workers' comp. And I know that you're kind of writing a more specialized, higher risk line. So I was just kind of curious, how is the workers' comp pricing doing in that arena? A: Well, thanks for the question, Andrew. The answer is that I think what you perhaps are referring to is some of the higher hazard stuff where we see growth opportunities from time to time, we saw, particularly in the first quarter. It was still there in the second quarter, but perhaps not to the same degree. - W. Robert Berkley, Jr., President, CEO & Director For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
WR Berkley Corp (WRB) Q2 2025 Earnings Call Highlights: Record Premiums and Investment Income ...
Net Income per Diluted Share: Increased 8.7% to $1 per share or $401 million. Annualized Return on Equity: 19.1%. Operating Earnings: $420 million or $1.05 per share, with a 20% annualized return on equity. Combined Ratio: Current accident year combined ratio before cat losses was 88.4%; calendar year combined ratio was 91.6%. Underwriting Income: $261 million. Catastrophe Losses: $99 million in Q2 2025. Net Premiums Earned: Record $3.1 billion. Net Premiums Written: Record $3.4 billion. Net Investment Income: Record $379 million. Investment Income from Fixed Maturity Securities: Improved 16.5% year over year. Effective Tax Rate: 23.2%. Stockholders' Equity: Increased by $380 million to $9.3 billion. Cash and Cash Equivalents: More than $2 billion. Financial Leverage: 23.4%. Growth in Book Value per Share: 6.8% in the quarter and 14.3% year-to-date. Release Date: July 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points WR Berkley Corp (NYSE:WRB) reported a strong performance in both underwriting income and net investment income for the second quarter of 2025. Net income per diluted share increased by 8.7% over the prior year, reaching $1 per share, with an annualized return on beginning of year equity of 19.1%. Operating earnings were $420 million or $1.05 per share, yielding an annualized return on beginning of year equity of 20%. Net premiums written increased to a record $3.4 billion in the quarter, with growth in all lines of business in both segments. Record net investment income of $379 million was achieved, benefiting from ongoing growth in invested assets and favorable new money rates on fixed maturity securities. Negative Points Catastrophe losses were $99 million in the second quarter of 2025, slightly higher than the $90 million reported in the prior year's quarter. The property insurance market is becoming more competitive, particularly for larger accounts, which may impact future growth. Foreign currency losses amounted to $55 million in the quarter due to the weakening US dollar relative to other currencies. The effective tax rate was 23.2%, exceeding the US statutory rate due to taxes on foreign earnings at higher rates and state income taxes. The reinsurance marketplace is showing signs of eroding discipline, particularly in casualty lines, which could affect future profitability. Q & A Highlights Q: Just first question on growth, just thinking about the growth potential here. I know it was a tougher quarter with the property pricing deceleration, but just curious if you all still view this as sort of a 10% to 15% growth environment? Or has the last few quarters changed that? A: Look, I think we had come out with that band if you will, probably, I don't know, call it, 18 months ago, maybe 24 months ago, if you're asking my best guesstimate at this stage in spite of the number that we saw in this quarter, my view is that it's probably somewhere between 8% and 12% would be my guess as opposed to 10% to 15%. - W. Robert Berkley, Jr., President, CEO & Director Q: You mentioned tariffs and labor costs in your opening remarks. And I just wanted to understand if you're actually seeing anything coming through if that's more of like a forward-looking statement. And obviously, it's the wider range out? A: It is a forward-looking statement. We are not seeing it in any noteworthy way in our loss activity right now. At the same time, we are conscious of the fact that, that concept of timing that I referenced in conjunction with the point that you're flagging. And we want to make sure that we're not caught flat-footed. - W. Robert Berkley, Jr., President, CEO & Director Q: My first question is actually on capital. You guys didn't buy back any shares in the quarter. Just wondering what drove that decision? A: Look, ultimately, Elyse, when the day is all done, as we've shared with you and others in the past, we have a view as to how much capital we have and what type of surplus we have at any moment in time. We have a view as to what we see is opportunities potentially before us and want to make sure that we have a surplus of gas in the tank. - W. Robert Berkley, Jr., President, CEO & Director Q: Rob, on the 15% Mitsui stake, any update on the time frame and timeline there? A: I know no more than anybody else or at least anybody else who bothered to read the SEC filings. Again, I think as I don't know if we share it or not, if we didn't, I said that we, by design, have not been privy to sort of where they stand in their process because in no way, shape or form, perhaps back to one of Elyse's points, we don't want to be encumbered or restricted in any way and our ability to repurchase stock. - W. Robert Berkley, Jr., President, CEO & Director Q: Rob, you mentioned in the write-up rate increases were 7.6% ex workers' comp. And I know that you're kind of writing a more specialized, higher risk line. So I was just kind of curious, how is the workers' comp pricing doing in that arena? A: Well, thanks for the question, Andrew. The answer is that I think what you perhaps are referring to is some of the higher hazard stuff where we see growth opportunities from time to time, we saw, particularly in the first quarter. It was still there in the second quarter, but perhaps not to the same degree. - W. Robert Berkley, Jr., President, CEO & Director For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-04-2025
- Business
- Yahoo
WR Berkley Corp (WRB) Q1 2025 Earnings Call Highlights: Strong Growth Amidst Challenges
Net Income: $418 million or $1.04 per share. Annualized Return on Equity: 19.9%. Operating Earnings: $405 million or $1.01 per share. Calendar Year Combined Ratio: 90.9%. Current Accident Year Combined Ratio (excluding cat losses): 87.2%. Catastrophe Losses: 3.7 loss ratio points or $111 million. Net Premiums Earned: $3 billion. Net Premiums Written: Over $3.1 billion. Insurance Segment Growth: 10.2% to $2.7 billion. Reinsurance & Monoline Excess Segment Growth: 8.2% to $439 million. Net Investment Income: Increased 12.6% to $360 million. Net Invested Assets: $30.7 billion. Operating Cash Flows: $744 million. Foreign Currency Losses: $19 million. Effective Tax Rate: 22.5%. Stockholders' Equity: Increased by more than $500 million to $8.9 billion. Book Value Per Share Growth: 7.1% in the quarter. Cash and Cash Equivalents: More than $1.9 billion. Financial Leverage: 24.2%. Warning! GuruFocus has detected 8 Warning Sign with GNTY. Release Date: April 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. WR Berkley Corp (NYSE:WRB) reported a strong first quarter with net income of $418 million, or $1.04 per share, and an annualized return on beginning of year equity of 19.9%. The company achieved record net premiums written of more than $3.1 billion, with the insurance segment growing by 10.2% and the Reinsurance & Monoline Excess segment by 8.2%. Net investment income increased by 12.6% to $360 million, driven by record net invested assets and higher new money rates. The company's balance sheet remains robust, with stockholders' equity increasing by more than $500 million to a record $8.9 billion. WR Berkley Corp (NYSE:WRB) maintained a strong credit quality with a portfolio rated AA minus and a low financial leverage of 24.2%. The company faced significant industry-wide catastrophic activity, particularly from the California wildfires, resulting in cat losses of $111 million. The current accident year loss ratio, excluding cats, increased by 30 basis points over the prior year due to business mix. Foreign currency losses amounted to $19 million due to the weakening US dollar. Professional liability and cyber insurance markets have become particularly competitive, impacting growth opportunities. The company is closely monitoring the impact of tariffs on loss costs, which could affect future pricing and profitability. Q: Can you elaborate on the growth in short-tail lines, particularly property and A&H? A: We continue to see opportunities in property lines and the A&H space. In property, we are pushing rates at a healthy pace, especially in risk and cat fronts, despite competition from Lloyds. Berkley One, our high net worth personal lines business, is also growing while taking healthy rates. Q: How should we view the reinsurance segment's performance, given the strong combined ratio despite cat losses? A: We are pleased with the reinsurance segment's performance and how it is positioned. While we can't predict the future with certainty, the portfolio is on firm ground, and we remain encouraged by its current and future potential. Q: Could you provide details on the reserve development in the insurance and reinsurance segments? A: In the insurance segment, there was an $11 million unfavorable prior year development, while the reinsurance and monoline access segment saw a $12 million favorable development. Q: How are tariffs impacting your business, particularly in property and high net worth homeowners? A: We are focused on the shorter tail lines like auto and property, but tariffs could also impact other lines like workers' compensation due to pharma costs. We are actively analyzing the situation to understand its implications on loss costs and rate needs. Q: What are your thoughts on the impact of social inflation and pricing adequacy in liability lines? A: We have been keeping up with social inflation, particularly in auto liability and umbrella lines. While we are encouraged by recent market discipline, we remain focused on rate adequacy and will adjust our growth strategy based on market conditions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
