W. R. Berkley(WRB) - 2024 Q4 - Annual Report

Premiums and Revenue - Net premiums written for 2024 reached $11,972.1 million, a 9.3% increase from $10,954.5 million in 2023[20] - The Insurance segment accounted for 88.1% of total net premiums written in 2024, up from 87.3% in 2023[20] - Reinsurance & Monoline Excess segment contributed 11.9% to total net premiums written in 2024, slightly down from 12.7% in 2023[20] - Insurance segment revenue increased to $11,181,501 thousand in 2024 from $9,827,866 thousand in 2023, representing a growth of 13.7%[84] - Reinsurance & Monoline Excess segment revenue rose to $1,696,905 thousand in 2024, up from $1,615,277 thousand in 2023, marking a growth of 5.0%[84] - The total revenue for the company reached $13,638,752 thousand in 2024, compared to $12,142,938 thousand in 2023, reflecting an increase of 12.3%[84] Claims and Reserves - Claims occurring during the current year amounted to $7,083,999 thousand in 2024, up from $6,311,780 thousand in 2023, representing an increase of about 12.2%[100] - Total net payments for claims in 2024 were $5,484,430 thousand, compared to $4,981,610 thousand in 2023, indicating an increase of approximately 10.1%[100] - The gross reserves at the end of 2024 were $20,368,030 thousand, compared to $18,739,652 thousand in 2023, marking an increase of about 8.7%[102] - The company discounted its workers' compensation reserves amounting to $1,358 million as of December 31, 2024, compared to $1,352 million in 2023, showing stability in reserve management[95] - The company's net reserves for environmental and asbestos claims were $16 million and $17 million as of December 31, 2024 and 2023, respectively[99] Market Presence and Operations - The company operates in 87 countries worldwide, with branches or offices in 40 cities outside the United States[29] - A total of 51 out of 58 businesses were developed internally, while 7 were added through acquisitions[19] - The company has 33 subsidiaries rated A+ by A.M. Best, indicating strong financial strength[20] - The company is focused on expanding its market presence and enhancing profitability through tailored insurance coverages and risk management solutions[34] Financial Strength and Ratings - The financial strength ratings from S&P, Moody's, and Fitch for the company's subsidiaries are A+, A1, and AA- respectively[21] - As of December 31, 2024, the RBC of each domestic insurance subsidiary was above the calculated RBC target level, indicating strong financial health[119] Business Segments and Products - Berkley Insurance Company has a diverse portfolio, including commercial general liability, professional liability, and niche products for industries like technology and life sciences[36] - Berkley Cyber Risk Solutions continues to adapt its offerings to address evolving cybersecurity vulnerabilities, providing specialty commercial cyber insurance globally[38] - Berkley Environmental underwrites specialty environmental products for contractors and property owners, focusing on casualty and environmental risks[40] - Berkley Healthcare provides customized insurance solutions for healthcare providers, including a wide range of medical professional coverages[43] - Berkley Latinoamérica provides a variety of insurance products including property, casualty, and workers' compensation across multiple countries in Latin America[46] Regulatory Environment - The company is subject to various state regulations, including the California Consumer Privacy Act, which may increase operational costs[113] - The NAIC adopted the Model Bulletin on the Use of Artificial Intelligence Systems by Insurers in December 2023, which may impact future operations[116] - The company must comply with the EU General Data Protection Regulation (GDPR) and the U.K. GDPR, which impose significant compliance obligations and potential fines for non-compliance[148] - The NAIC adopted a new standard for climate-related risk reporting for insurers with over $100 million in U.S. direct premium as part of its annual Climate Risk Disclosure Survey[129] Employee and Corporate Culture - The company employs 8,606 individuals as of January 15, 2025, with 8,474 employed by subsidiaries[159] - The company is committed to a performance culture, focusing on diversity, inclusion, and employee well-being through robust health and wellness programs[160] - The company has a "pay for performance" philosophy that aligns employee incentives with risk and performance frameworks[162] Competition and Market Dynamics - The company faces strong competition in the property casualty insurance and reinsurance sectors from both domestic and foreign entities, including well-capitalized new entrants[158] - Future performance is subject to various risks, including competition, claims development, and economic conditions[16]