NYSE$WRB

W R Berkley Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

W. R. Berkley Corporation reported fourth quarter results with net premiums written growing by 26.6% and a return on equity of 18.7%.

W. R. Berkley Corporation reported a strong fourth quarter and full year in 2021, marked by significant growth in net premiums written and a high return on equity. The company's performance was driven by robust premium growth, strong rate increases, and improved underwriting margins.

  • Return on equity was 18.7%.
  • Record quarterly underwriting income reached $260.9 million.
  • Net premiums written increased by 26.6%.
  • The reported combined ratio was 88.2%, including catastrophe losses of $48.5 million.

Headline financials

Total Revenue

$2.58B

Previous: $2.31B+11.5%
EPS (adj)

$0.68

Previous: $0.41+65.9%
GAAP Combined ratio

88.2%

No prior period
Return on equity

18.7%

Previous: 20.6%-9.2%
Net Income

$294M

Previous: $312M-5.7%
Operating Income

$284M

Previous: $173M+64.3%
Gross Profit

-$14.5M

Previous: $399M-103.6%
Cash & Equivalents

$1.57B

Previous: $2.89B-45.7%
Total Assets

$32B

Previous: $28.6B+12.0%
Stock-Based Comp

$10.2M

Previous: $11.8M-13.7%

Revenue & EPS history

W. R. Berkley · Revenue · Quarterly

$2.58B

Q4 2021+11.5%vs Q4 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 the factors fueling the Company’s growth should remain in place for the foreseeable future and that compounding rate increases in excess of loss trend will further contribute to underwriting profits as premiums are fully earned. The Company is performing exceptionally well and we look forward to another great year in 2022.

Tailwinds

  • Continued strong rate increases in nearly all lines of business.
  • Higher exposure growth.
  • Year-over-year margin improvement.
  • Further reduction in the expense ratio.
  • Well-positioned underwriting and investment portfolios for the anticipated inflationary environment.

Headwinds

  • Catastrophe losses
  • Continuing low interest rates.
  • Cyclical nature of the property casualty industry
  • Impact of significant competition
  • Long-tail and potentially volatile nature of the insurance and reinsurance business

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 2021

Historical avgQ4 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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