NYSE$WRB

W R Berkley Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

W. R. Berkley Corporation reported a strong first quarter with premium growth and a solid combined ratio, leading to a 14.5% return on equity.

W. R. Berkley Corporation reported a strong first quarter with gross premiums written growing by 11.4% and a return on equity of 14.5%. The company's combined ratio was 90.1%, and operating income was $201.8 million.

  • Return on equity of 14.5%.
  • Gross and net premiums written increased 11.4% and 11.1%, respectively.
  • The reported combined ratio was 90.1%. The accident year combined ratio before catastrophe losses was 88.4%.
  • Record quarterly underwriting income of $182.6 million.

Headline financials

Total Revenue

$2.16B

Previous: $1.81B+19.1%
EPS (adj)

$0.48

Previous: $0.31+54.8%
Return on equity

14.5%

Previous: -0.3%+4933.3%
Free Cash Flow

$230M

Previous: -$28.7M+900.7%
Net Income

$230M

Previous: -$4.42M+5295.2%
Operating Income

-$824M

Previous: -$1.12B+26.1%
Gross Profit

$296M

Previous: -$6.47M+4677.4%
Cash & Equivalents

$2.12B

Previous: $1.1B+93.8%
Total Assets

$29.8B

Previous: $26.1B+14.2%
Stock-Based Comp

$11.8M

Previous: $11.7M+1.1%

Revenue & EPS history

W. R. Berkley · Revenue · Quarterly

$2.16B

Q1 2021+19.1%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

W. R. Berkley · $2.25B total across 2 segments · Q1 2022

  • Insurance
    $1.96B
  • Reinsurance & Monoline Excess
    $286M

Forward guidance

The Company anticipates that rate increases will continue for the foreseeable future, driven by social inflation and above-average industry catastrophe losses. They expect their combined ratio to improve as rate increases exceed loss cost trends, and their total return investment strategy will continue to generate attractive returns for shareholders.

Tailwinds

  • Rate increases are expected to continue.
  • Combined ratio is expected to improve.
  • Total return investment strategy is expected to generate attractive returns.
  • Decentralized model allows quick emphasis on market sectors with best risk-adjusted returns.
  • The company expects to greatly benefit from the current opportunity, which should lead to exceptional results.

Headwinds

  • Persistent social inflation.
  • Above-average industry catastrophe losses.
  • Defensive position in fixed-maturity securities due to rising interest rates.
  • Potential risks associated with transitioning markets.
  • Uncertainties related to economic expansion.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.1%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.8%

Avg return

30 days after

57%

39 / 69 earnings

Positive

+8.4%

Q4 2023

Best reaction

-8.5%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%+1.2%+3.3%
Q4 2025+0.4%+2.5%+7.0%
Q3 2025+2.2%+2.1%+5.2%
Q2 2025-1.1%+1.5%+3.2%
Q1 2025+5.2%+4.7%+7.2%
Q4 2024+3.2%+2.3%+6.7%
Q3 2024-4.5%-5.1%-0.5%
Q2 2024+1.3%+4.9%+11.8%
Q1 2024-6.7%-8.1%-5.5%
Q4 2023+8.4%+5.7%+11.1%
Q3 2023+5.5%+3.2%+12.3%
Q2 2023+1.6%+0.2%+2.2%
Q1 2023-8.5%-8.3%-8.2%
Q4 2022-3.1%-1.8%-7.1%
Q3 2022-3.2%+2.7%+4.2%
Q2 2022-1.6%-0.2%+6.2%
Q1 2022-1.0%-2.2%+1.5%
Q4 2021+2.8%+4.2%+10.7%
Q3 2021+4.8%+4.3%+2.3%
Q2 2021-2.2%-2.9%-0.2%
Q1 2021-0.3%+0.7%-2.8%
Q4 2020-6.7%-5.9%+5.6%
Q3 2020+6.4%+7.4%+9.2%
Q2 2020+0.8%+0.9%-5.1%
Q1 2020-7.2%-9.1%+0.9%
Q4 2019+1.6%+2.7%-2.2%
Q3 2019+1.3%-2.1%-4.4%
Q2 2019+3.1%+5.7%+9.3%
Q1 2019+4.6%+5.1%+6.5%
Q4 2018+2.6%+3.5%+11.4%
Q3 2018-0.5%+0.8%+6.2%
Q2 2018-0.5%+1.0%+4.0%
Q1 2018+1.9%+1.5%+2.9%
Q4 2017+1.8%+2.3%-5.3%
Q3 2017+0.4%-0.7%-5.2%
Q2 2017-3.0%-3.2%-6.0%
Q1 2017+0.3%-0.0%-0.1%
Q4 2016-0.3%+0.8%+5.5%
Q3 2016+2.3%+1.4%+9.9%
Q2 2016-0.4%-1.3%-1.0%
Q1 2016+1.9%
Q4 2015+0.5%
Q3 2015+2.3%
Q2 2015-2.8%
Q1 2015+0.3%
Q4 2014-2.4%
Q3 2014+3.4%
Q2 2014+0.5%
Q1 2014+2.8%
Q4 2013+0.7%
Q3 2013-1.7%
Q2 2013-3.5%
Q1 2013-0.7%
Q4 2012-1.0%
Q3 2012+1.9%
Q2 2012-2.1%
Q1 2012+0.7%
Q4 2011-0.7%
Q3 2011+2.0%
Q2 2011-7.5%
Q1 2010+1.2%
Q1 2011+3.1%
Q4 2010-0.9%
Q3 2010-3.2%
Q3 2009-3.2%
Q4 2009+0.6%
Q2 2010+0.6%
Q4 2008+0.6%
Q2 2009+0.6%

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