W.R. Berkley Q1 Earnings Meet Estimates, Revenues Beat

Core Insights - W.R. Berkley Corporation's first-quarter 2025 operating income was $1.01 per share, matching the Zacks Consensus Estimate, but reflecting a 2.9% decline year over year due to higher catastrophe losses, partially offset by increased premiums and improved net investment income [1] Financial Performance - Net premiums written reached $3.1 billion, a 9.9% increase year over year, exceeding the estimate of $3 billion [1] - Operating revenues were $3.5 billion, up 9.3% year over year, surpassing the consensus estimate by 2.2% [2] - Net investment income grew 12.6% to $360.3 million, although it was below the estimate of $380.4 million [3] - Total expenses rose 12.2% to $3 billion, driven by higher losses and loss expenses, exceeding the estimate of $2.8 billion [4] - Catastrophe losses amounted to $111.1 million, significantly higher than $30 million in the prior year, contributing to a deterioration in the consolidated combined ratio to 90.9 [5] Segment Analysis - In the Insurance segment, net premiums written increased 10.2% year over year to $2.7 billion, higher than the estimate of $2.6 billion, with a combined ratio of 91.7 [6] - The Reinsurance & Monoline Excess segment saw net premiums written rise 8.2% year over year to $438.8 million, also exceeding the estimate of $415.7 million, with a combined ratio of 85.4 [7] Financial Position - As of the end of the first quarter of 2025, total assets were $41.3 billion, a 2.2% increase from year-end 2024 [8] - Book value per share increased 6.4% to $23.50, while cash flow from operations was $743.8 million, down 0.3% year over year [8] - The operating return on equity contracted 340 basis points to 19.3% [8] Shareholder Returns - W.R. Berkley returned $49.2 million through share buybacks in the first quarter of 2025 [9]