What's in the Cards for W.R. Berkley This Earnings Season?

Core Viewpoint - W.R. Berkley Corporation (WRB) is expected to report fourth-quarter 2024 earnings on January 27, with a history of earnings surprises in the last four quarters [1] Group 1: Earnings and Revenue Expectations - Gross premiums written in the Insurance segment are anticipated to reach $3.3 billion, reflecting a 2.3$349.8 million, up 5.8% year-over-year [3] - The Zacks Consensus Estimate for fourth-quarter 2024 premiums earned is $2.97 billion, while the company's estimate is$2.92 billion, indicating a 7.4% increase from the prior year [3] - Total revenues are expected to rise to $3.5 billion, representing a 9.1$323.8 million, showing a significant increase of 27.9% from the previous year, driven by improved cash flows and higher yields [4] - Total expenses are projected to increase by 10.9% to $3 billion, influenced by higher losses, non-insurance business expenses, and investments in technology [6] Group 3: Profitability and Ratios - The combined ratio is expected to remain at 91, benefiting from prudent pricing and increased exposure, despite a deterioration of 19 basis points in the expense ratio [7] - Continued share buybacks are likely to support the bottom line, with the Zacks Consensus Estimate for earnings per share at 94 cents, a decrease of 3.1% from the previous year [8] Group 4: Earnings Prediction Model - The current Earnings ESP for W.R. Berkley is -1.77%, indicating that the Most Accurate Estimate of 92 cents is lower than the Zacks Consensus Estimate of 94 cents [10] - W.R. Berkley holds a Zacks Rank of 3, suggesting a neutral outlook for earnings performance [10]