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 Corporation’s (WRB - Free Report) third-quarter 2018 operating income of $1.13 per share beat the Zacks Consensus Estimate of 83 cents by 36.1%. Also, the bottom line skyrocketed 213.9% year over year.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
The company witnessed improved revenues, attributable to higher premiums, a favorable underwriting performance as well as an increase in net investment income. Also, expenses slightly declined in the reported quarter.
Including net realized and unrealized pre-tax gains, net income remained unchanged from the year-ago quarter to $1.26 per share.
Behind the Headlines
W.R. Berkley’s net premiums written for the quarter under review were $1.6 billion, up 3.4% year over year. Higher premiums written at the Insurance segment primarily contributed to this upside. However, lower premiums written at the Reinsurance segment partially offset the improvement.
Operating revenues came in at $1.92 billion, up 3.7% year over year, mainly owing to higher net premiums earned and an improved net investment income. Moreover, the top line beat the Zacks Consensus Estimate by 7.5%.
Investment income surged 30.6% year over year to $186.1 million, driven by solid results in investment funds, an increase in the yield on fixed maturity securities as well as a higher base of invested assets.
Total expenses declined 4.2% to $1.7 billion, primarily on lower losses plus loss expenses and other operating costs as well as expenses.
Catastrophe loss totaled $39 million in the reported period. Consolidated combined ratio (a measure of underwriting profitability) came in at 95.9%, improving 510 basis points (bps) from the prior-year period.
Segment Details
Net premiums written at the Insurance segment grew 5.1% year over year to $1.5 billion in the quarter under consideration. This increase was attributable to higher premiums written under other liability, workers’ compensation, short-tail lines as well as commercial automobile. Combined ratio in this segment improved 70 bps year over year to 94.9%.
Net premiums written in the Reinsurance segment decreased 13.9% year over year to $119.4 million due to substantially lower premiums written under casualty as well as property reinsurance. Combined ratio improved 4570 bps to 107.9%.
Financial Update
W.R. Berkley exited the third quarter with total assets worth $24.9 billion, up 2.3% from the year-end 2017.
Book value per share remained unchanged at $44.53 as of Sep 30, 2018 from the level as of Dec 31, 2017.
Cash flow from operations for the quarter under discussion totaled $223.2 million, down 24.9% from the prior-year period.
The company’s return on equity deteriorated 80 bps to 12.0%.
Share Repurchase Update
In the reported quarter, the company did not buy back any shares of its common stock. Hence, during the first nine months of 2018, the company repurchased 0.1 million shares for $6.8 million.
In the quarter under review, the company returned capital worth $79 million to shareholders, which comprised $61 million as special dividends.
Among other players from the insurance industry having reported third-quarter earnings so far, the bottom line of The Progressive Corp. (PGR - Free Report) and MGIC Investment Corp. (MTG - Free Report) outpaced the respective Zacks Consensus Estimate while RLI Corp.’s (RLI - Free Report) metric missed.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
W.R. Berkley (WRB) Q3 Earnings & Revenues Top, Rise Y/Y
W.R. Berkley Corporation’s (WRB - Free Report) third-quarter 2018 operating income of $1.13 per share beat the Zacks Consensus Estimate of 83 cents by 36.1%. Also, the bottom line skyrocketed 213.9% 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, a favorable underwriting performance as well as an increase in net investment income. Also, expenses slightly declined in the reported quarter.
Including net realized and unrealized pre-tax gains, net income remained unchanged from the year-ago quarter to $1.26 per share.
Behind the Headlines
W.R. Berkley’s net premiums written for the quarter under review were $1.6 billion, up 3.4% year over year. Higher premiums written at the Insurance segment primarily contributed to this upside. However, lower premiums written at the Reinsurance segment partially offset the improvement.
Operating revenues came in at $1.92 billion, up 3.7% year over year, mainly owing to higher net premiums earned and an improved net investment income. Moreover, the top line beat the Zacks Consensus Estimate by 7.5%.
Investment income surged 30.6% year over year to $186.1 million, driven by solid results in investment funds, an increase in the yield on fixed maturity securities as well as a higher base of invested assets.
Total expenses declined 4.2% to $1.7 billion, primarily on lower losses plus loss expenses and other operating costs as well as expenses.
Catastrophe loss totaled $39 million in the reported period. Consolidated combined ratio (a measure of underwriting profitability) came in at 95.9%, improving 510 basis points (bps) from the prior-year period.
Segment Details
Net premiums written at the Insurance segment grew 5.1% year over year to $1.5 billion in the quarter under consideration. This increase was attributable to higher premiums written under other liability, workers’ compensation, short-tail lines as well as commercial automobile. Combined ratio in this segment improved 70 bps year over year to 94.9%.
Net premiums written in the Reinsurance segment decreased 13.9% year over year to $119.4 million due to substantially lower premiums written under casualty as well as property reinsurance. Combined ratio improved 4570 bps to 107.9%.
Financial Update
W.R. Berkley exited the third quarter with total assets worth $24.9 billion, up 2.3% from the year-end 2017.
Book value per share remained unchanged at $44.53 as of Sep 30, 2018 from the level as of Dec 31, 2017.
Cash flow from operations for the quarter under discussion totaled $223.2 million, down 24.9% from the prior-year period.
The company’s return on equity deteriorated 80 bps to 12.0%.
Share Repurchase Update
In the reported quarter, the company did not buy back any shares of its common stock. Hence, during the first nine months of 2018, the company repurchased 0.1 million shares for $6.8 million.
In the quarter under review, the company returned capital worth $79 million to shareholders, which comprised $61 million as special dividends.
Zacks Rank
W.R. Berkley carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Among other players from the insurance industry having reported third-quarter earnings so far, the bottom line of The Progressive Corp. (PGR - Free Report) and MGIC Investment Corp. (MTG - Free Report) outpaced the respective Zacks Consensus Estimate while RLI Corp.’s (RLI - Free Report) metric missed.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>