We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
W.R. Berkley (WRB) Q1 Earnings and Revenues Beat Estimates
Read MoreHide Full Article
W.R. Berkley Corporation’s (WRB - Free Report) first-quarter 2018 operating income of $1 per share beat the Zacks Consensus Estimate of 89 cents by 12.4%. Also, the bottom line surged 42.9% year over year.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
The company witnessed improved revenues attributable to higher premiums as well as increase in net investment income. Also, expenses slightly declined in the reported quarter.
Including net realized and unrealized pre-tax gains, net income improved 35.4% from the year-ago quarter to $1.30 per share.
Behind the Headlines
W.R. Berkley’s net premiums written for the quarter under review were $1.7 billion, up 1.1% year over year. Higher premiums written at the Insurance segment resulted in the upside. However, lower premiums written at the Reinsurance segment partially offset this improvement.
Operating revenues came in at $1.8 billion, up 1.1% year over year, mainly owing to higher net premiums earned and improved net investment income. Moreover, the top line beat the Zacks Consensus Estimate by 1.2%.
Investment income rose 17.2% year over year to $174.5 million.
Total expenses dipped 0.3% to $1.7 billion, primarily on lower loss and loss expenses.
Catastrophe loss totaled $7 million in the quarter. Consolidated combined ratio (a measure of underwriting profitability) came in at 94.6%, improving 110 basis points (bps) from the prior-year quarter.
Segment Details
Net premiums written in the Insurance segment grew 3.3% year over year to $1.5 billion in the quarter. This increase was attributable to higher premiums written under other liability, short-tail lines, commercial automobile and professional liability. Combined ratio in this segment improved 40 bps year over year to 93.4%.
Net premiums written in the Reinsurance segment decreased 19.9% year over year to $122.3 million due to substantially lower premiums written under property and casualty reinsurance. Combined ratio improved 550 bps to 107.4%.
Financial Update
W.R. Berkley exited the first quarter with total assets worth $24.6 billion, up 1.2% from the year-end 2017.
Book value per share inched up 0.7% from the year-end 2017 to $44.85 as of Mar 31, 2018.
Cash flow from operations came in at (20.0 million), comparing unfavorably with $75.5 million from the year-ago quarter.
The company’s return on equity improved 250 bps to 12.3%.
Share Repurchase Update
In the reported quarter, the company bought back 0.1 million shares for $6.8 million.
Among other players from the insurance industry, which have already reported first-quarter earnings, the bottom line of The Progressive Corporation (PGR - Free Report) , MGIC Investment Corporation (MTG - Free Report) and RLI Corp. (RLI - Free Report) surpassed the respective Zacks Consensus Estimate.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
W.R. Berkley (WRB) Q1 Earnings and Revenues Beat Estimates
W.R. Berkley Corporation’s (WRB - Free Report) first-quarter 2018 operating income of $1 per share beat the Zacks Consensus Estimate of 89 cents by 12.4%. Also, the bottom line surged 42.9% year over year.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
W.R. Berkley Corporation Price, Consensus and EPS Surprise | W.R. Berkley Corporation Quote
The company witnessed improved revenues attributable to higher premiums as well as increase in net investment income. Also, expenses slightly declined in the reported quarter.
Including net realized and unrealized pre-tax gains, net income improved 35.4% from the year-ago quarter to $1.30 per share.
Behind the Headlines
W.R. Berkley’s net premiums written for the quarter under review were $1.7 billion, up 1.1% year over year. Higher premiums written at the Insurance segment resulted in the upside. However, lower premiums written at the Reinsurance segment partially offset this improvement.
Operating revenues came in at $1.8 billion, up 1.1% year over year, mainly owing to higher net premiums earned and improved net investment income. Moreover, the top line beat the Zacks Consensus Estimate by 1.2%.
Investment income rose 17.2% year over year to $174.5 million.
Total expenses dipped 0.3% to $1.7 billion, primarily on lower loss and loss expenses.
Catastrophe loss totaled $7 million in the quarter. Consolidated combined ratio (a measure of underwriting profitability) came in at 94.6%, improving 110 basis points (bps) from the prior-year quarter.
Segment Details
Net premiums written in the Insurance segment grew 3.3% year over year to $1.5 billion in the quarter. This increase was attributable to higher premiums written under other liability, short-tail lines, commercial automobile and professional liability. Combined ratio in this segment improved 40 bps year over year to 93.4%.
Net premiums written in the Reinsurance segment decreased 19.9% year over year to $122.3 million due to substantially lower premiums written under property and casualty reinsurance. Combined ratio improved 550 bps to 107.4%.
Financial Update
W.R. Berkley exited the first quarter with total assets worth $24.6 billion, up 1.2% from the year-end 2017.
Book value per share inched up 0.7% from the year-end 2017 to $44.85 as of Mar 31, 2018.
Cash flow from operations came in at (20.0 million), comparing unfavorably with $75.5 million from the year-ago quarter.
The company’s return on equity improved 250 bps to 12.3%.
Share Repurchase Update
In the reported quarter, the company bought back 0.1 million shares for $6.8 million.
Zacks Rank
W.R. Berkley carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the insurance industry, which have already reported first-quarter earnings, the bottom line of The Progressive Corporation (PGR - Free Report) , MGIC Investment Corporation (MTG - Free Report) and RLI Corp. (RLI - Free Report) surpassed the respective Zacks Consensus Estimate.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>