NYSE$WRB

W R Berkley Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

W. R. Berkley's fourth quarter return on equity was 23.6%. The company reported record net investment income and growth in net premiums written.

W. R. Berkley Corporation reported a strong fourth quarter in 2023, with a 23.6% annualized return on beginning equity. The quarter was marked by growth in net premiums written, record underwriting performance, and net investment income. Book value per share grew by 11.6% during the quarter, before capital returned to shareholders.

  • Return on equity of 23.6%.
  • Book value per share grew 11.6%, before dividends and share repurchases.
  • Record net investment income of $313.3 million driven by 52.9% increase in the core portfolio.
  • Net premiums written growth increased to 12.0%.

Headline financials

Total Revenue

$3.22B

Previous: $3.01B+6.9%
EPS (adj)

$0.97

Previous: $0.77+26.0%
GAAP Combined ratio

88.4%

Previous: 88.4%+0.0%
Return on equity

23.6%

Previous: 23.0%+2.6%
Operating return on equity

23.2%

No prior period
Net Income

$397M

Previous: $382M+4.0%
Operating Income

$392M

Previous: $323M+21.2%
Gross Profit

$2.28B

Previous: $380M+499.8%
Stock-Based Comp

$13.2M

Previous: $13.2M+0.3%

Revenue & EPS history

W. R. Berkley · Revenue · Quarterly

$3.22B

Q4 2023+6.9%vs Q4 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

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

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

Forward guidance

W. R. Berkley anticipates 2024 will continue to be rewarding for its shareholders and views the current property and casualty insurance and investment environments as favorable to its business model. The company is confident that it will continue to deliver superior long-term risk-adjusted returns and increase value to shareholders in 2024 and beyond.

Tailwinds

  • Company anticipates 2024 will continue to be rewarding for shareholders.
  • Current property and casualty insurance and investment environments are favorable to the business model.
  • Company is confident that it will continue to deliver superior long-term risk-adjusted returns.
  • Company expects to increase value to shareholders in 2024 and beyond.
  • Record operating cash flow positions the company well for future investment income growth.

Headwinds

  • Cyclical nature of the property casualty industry
  • Impact of significant competition, including new entrants to the industry
  • Long-tail and potentially volatile nature of the insurance and reinsurance business
  • General economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets
  • Potential effect of legislative, regulatory, accounting or other initiatives taken in response to such conditions, on our results and financial condition

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 2023

Historical avgQ4 2023

+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