Why Is W.R. Berkley (WRB) Up 5.9% Since Last Earnings Report?

Core Viewpoint - W.R. Berkley Corporation has shown strong performance in its recent earnings report, with significant increases in operating income and revenues, driven by higher premiums and improved net investment income, despite facing challenges from increased catastrophe losses and expenses [2][3][4]. Financial Performance - The fourth-quarter 2024 operating income was $1.13 per share, exceeding the Zacks Consensus Estimate by 20.2%, and improved 17.7% year over year [2]. - Net premiums written reached $2.9 billion, an 8% increase year over year, although it fell short of the $3 billion estimate [3]. - Operating revenues totaled $3.5 billion, up 9.2% year over year, surpassing the consensus estimate by 4.2% [3]. - Net investment income grew 1.3% to $317.4 million, driven by strong contributions from net unrealized gains, but was below the estimate of $399.5 million [4]. - Total expenses increased 8% to $2.9 billion, primarily due to higher losses and loss expenses [4]. Catastrophe Losses and Ratios - Catastrophe losses for the quarter were $79.6 million, significantly higher than the $32 million from the previous year [5]. - The consolidated combined ratio deteriorated by 180 basis points year over year to 90.2, slightly better than the Zacks Consensus Estimate of 91 [5]. Segment Performance - The Insurance segment saw net premiums written increase by 9.8% year over year to $2.6 billion, although it was below the estimate of $2.7 billion [6]. - The Reinsurance & Monoline Excess segment experienced a 5.5% decrease in net premiums written to $316 million, also falling short of the estimate [7]. Full-Year Highlights - For the full year, operating income was $4.14 per share, beating the Zacks Consensus Estimate by 4.8%, and improved 26.2% year over year [8]. - Operating revenues for the year were $13.52 billion, an 11.7% increase year over year, aligning with the consensus estimate [8]. - Net investment income reached a record $1.3 billion, up 26.6% year over year [9]. Financial Update - As of the end of 2024, total assets were valued at $40.6 billion, a 9% increase from the end of 2023 [11]. - Book value per share increased by 14% to $22.09 [11]. - Cash flow from operations was $3.7 billion, reflecting a 25.6% year-over-year increase [11]. Capital Deployment - The company returned $287.8 million to shareholders, which included $67.4 million in share repurchases and $190 million in special dividends [12]. Outlook - W.R. Berkley holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return from the stock in the upcoming months [15].