NYSE$WRB

W R Berkley Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

W. R. Berkley Corporation reported an outstanding third quarter with a 72.3% increase in net income and a return on equity of 16.6%.

W. R. Berkley Corporation reported a strong third quarter, with a 72.3% increase in net income and a 16.6% return on equity. The company saw growth in net premiums written and underwriting income, driven by robust rate increases and a strong commercial property and casualty pricing environment. Investment income also grew, contributing to the company's overall positive performance.

  • Return on equity of 16.6%.
  • Net premiums written increased 23.7%.
  • The current accident year combined ratio before catastrophe losses of 3.5 loss ratio points was 86.9%.
  • The reported combined ratio was 90.4%, including catastrophe losses of $73.8 million.

Headline financials

Total Revenue

$2.42B

Previous: $2.04B+18.8%
EPS (adj)

$0.59

Previous: $0.29+103.4%
Return on equity

16.6%

Previous: 10.0%+66.0%
Free Cash Flow

$261M

Previous: $109M+139.1%
Net Income

$261M

Previous: $152M+72.3%
Operating Income

-$966M

Previous: -$905M-6.7%
Gross Profit

$332M

Previous: $206M+61.0%
Cash & Equivalents

$2.07B

Previous: $2.75B-24.6%
Total Assets

$31.5B

Previous: $28.2B+11.8%
Stock-Based Comp

$13.4M

Previous: $12.1M+10.3%

Revenue & EPS history

W. R. Berkley · Revenue · Quarterly

$2.42B

Q3 2021+18.8%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

W. R. Berkley · $2.08B total across 2 segments · Q3 2021

  • Insurance
    $1.82B
  • Reinsurance & Monoline Excess
    $262M

Forward guidance

Overall rate increases remained robust in nearly all lines of business, and we expect this to continue for the foreseeable future. We see expanding opportunities to write business at attractive underwriting margins, given the strong commercial property and casualty pricing environment.

Tailwinds

  • Expanding opportunities to write business at attractive underwriting margins.
  • Strong commercial property and casualty pricing environment.
  • Increasing focus on stable markets with balance sheet strength and expertise.
  • Expect that exposure growth and compounding rate achievement will contribute to additional underwriting profits.
  • Investment funds delivered another strong performance.

Headwinds

  • Significant industry catastrophe losses.
  • Low interest rates.
  • Uncertainties related to emerging claim and coverage issues.
  • Potential difficulties with technology and/or cyber security issues.
  • Impact of climate change, which may alter the frequency and increase the severity of catastrophe events

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 Q3 2021

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro