Compared to Estimates, W.R. Berkley (WRB) Q2 Earnings: A Look at Key Metrics

Core Insights - W.R. Berkley reported a revenue of $3.37 billion for the quarter ended June 2024, marking a year-over-year increase of 14.8% and an EPS of $1.04, up from $0.76 a year ago, with both figures exceeding analyst expectations [3] Financial Performance - Revenue: $3.37 billion, a year-over-year increase of 14.8%, and a surprise of +2.26% over the Zacks Consensus Estimate of $3.3 billion [3] - EPS: $1.04, compared to the consensus estimate of $0.92, resulting in an EPS surprise of +13.04% [3] - Combined Ratio: 91.1%, slightly above the average estimate of 91% [4] - Expense Ratio: 28.5%, better than the average estimate of 29.1% [4] - Loss Ratio (Insurance Segment): 64%, compared to the average estimate of 62% [4] - Revenues from non-insurance businesses: $125.71 million, exceeding the average estimate of $122.91 million, with a year-over-year change of +10.4% [4] - Net premiums earned: $2.85 billion, above the average estimate of $2.83 billion, reflecting a year-over-year change of +11.5% [4] - Net investment income: $372.13 million, surpassing the average estimate of $331.12 million, with a year-over-year increase of +51.8% [4] - Net realized gains on investment sales: -$60.31 million, significantly below the average estimate of $19.65 million, representing a year-over-year change of -187.9% [4] - Insurance service fees: $27.60 million, exceeding the average estimate of $26.24 million, with a year-over-year change of +8.4% [4] - Net premiums earned (Reinsurance & Monoline Excess): $361.85 million, above the average estimate of $328.65 million, reflecting a year-over-year change of +18.1% [4] - Other income: $0.70 million, compared to the average estimate of $0.18 million [4] - Net premiums earned (Insurance): $2.48 billion, slightly above the average estimate of $2.47 billion, with a year-over-year change of +10.6% [4] Stock Performance - W.R. Berkley shares have returned -4% over the past month, while the Zacks S&P 500 composite has changed by +0.4% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]