NYSE$WRB

W R Berkley Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

W. R. Berkley Corporation reported strong Q4 2020 results with record net income and a return on equity of 20.6%.

W. R. Berkley Corporation reported an outstanding fourth quarter, achieving a record net income of $312.2 million and a return on equity of 20.6%. Gross premiums written grew by 9.3%. The company's combined ratio was 90.9%, and underwriting income increased by 44.2% to $165.4 million.

  • Net income reached an all-time record of $312.2 million.
  • Return on equity was 20.6%.
  • Gross and net premiums written increased by 9.3% and 8.2%, respectively.
  • Underwriting income increased 44.2% to $165.4 million.

Headline financials

Total Revenue

$2.31B

Previous: $1.98B+17.0%
EPS (adj)

$0.41

Previous: $0.27+51.9%
Return on equity

20.6%

No prior period
Average rate increases excluding workers' compensation

15.4%

No prior period
Net Income

$312M

Previous: $119M+161.6%
Operating Income

$173M

Previous: $147M+17.9%
Gross Profit

$399M

Previous: -$384M+203.9%
Cash & Equivalents

$2.89B

Previous: $1.38B+108.8%
Total Assets

$28.6B

Previous: $26.6B+7.4%
Stock-Based Comp

$11.8M

Previous: $10.8M+9.1%

Revenue & EPS history

W. R. Berkley · Revenue · Quarterly

$2.31B

Q4 2020+17%vs Q4 2019
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 expects that 2021 will provide opportunities for margin improvement, with no signs of rate increases moderating.

Tailwinds

  • Rate increases continued to accelerate throughout the year.
  • Total return investment strategy delivered strong performance.
  • Net investment income grew 32%.
  • Company delivered a superior risk-adjusted return.
  • No signs of rate increases moderating.

Headwinds

  • Global pandemic continues.
  • Frequent catastrophe losses continue.
  • Social inflation continues.
  • Low interest rates continue.
  • Industry’s need for disciplined underwriting and additional rate continues.

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 Q4 2020

Historical avgQ4 2020

+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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