W.R. Berkley Q2 Earnings and Revenues Surpass Estimates

Core Insights - W.R. Berkley Corporation's second-quarter 2025 operating income was $1.05 per share, surpassing the Zacks Consensus Estimate of $1.03 per share, with a year-over-year increase of approximately 1% [1][8] - The company experienced higher underwriting gains and improved investment income despite facing above-average industry catastrophe losses during the quarter [1] Premiums and Revenue - Net premiums written reached $3.4 billion, reflecting a year-over-year increase of 9.9%, although this was below the estimated $3.6 billion [2] - Operating revenues totaled $3.6 billion, up 7.9% year over year, driven by higher net premiums earned and improved net investment income, exceeding the consensus estimate by 1.8% [2] Investment Income - Net investment income grew by 1.9% to $379.3 million, attributed to higher yields on an expanding domestic fixed-maturity portfolio, surpassing both the estimate of $358.5 million and the Zacks Consensus Estimate of $358 million [3] Expenses and Loss Ratios - Total expenses increased by 11.4% to $3.1 billion, primarily due to higher losses and loss expenses, exceeding the estimate of $3 billion [4] - The loss ratio deteriorated by 50 basis points to 63.1, while the expense ratio remained flat at 28.3 [4] - Catastrophe losses amounted to $99.2 million, higher than the $89.7 million from the previous year, contributing to a consolidated combined ratio of 92.1, which deteriorated by 50 basis points year over year [4][8] Segment Performance - In the Insurance segment, net premiums written increased by 7.2% year over year to $3 billion, driven by higher premiums from various lines [5] - The combined ratio for the Insurance segment deteriorated by 30 basis points to 92.1, slightly better than the Zacks Consensus Estimate of 93 [5] - The Reinsurance & Monoline Excess segment saw net premiums written rise by 6.8% year over year to $337.7 million, although this was below the estimate of $367.1 million, with a combined ratio deteriorating by 630 basis points to 87 [6] Financial Position - As of June 30, 2025, W.R. Berkley had total assets of $42.7 billion, a 5.5% increase from year-end 2024, with senior notes and other debt remaining flat at $1.8 billion [7] - Book value per share increased by 6.8% from the end of 2024 to $24.50 [7] Cash Flow and Shareholder Returns - Cash flow from operations for the first half of 2025 was $1.5 billion, down 11.1% year over year [9] - The company returned $223.8 million to shareholders, which included $189.7 million in special dividends and $34.1 million in ordinary dividends [9]