W. R. Berkley Corporation (NYSE: BER) today reported net income for
the second quarter of 2007 of $191 million, or 93 cents per share,
a 15% increase from $165 million, or 82 cents per share, for the
second quarter of 2006. Net operating income for the second quarter
of 2007 increased 13% to $187 million, or 92 cents per share,
compared with $166 million, or 82 cents per share, for the
corresponding quarter of 2006. Net operating income is a non-GAAP
financial measure defined by the Company as net income excluding
realized investment gains and losses. Summary Financial Data
(Amounts in thousands, except per share data) � Second Quarter Six
Months 2007 2006 2007 2006 � Gross premiums written $ 1,265,679 $
1,341,347 $ 2,649,041 $ 2,752,182 Net premiums written 1,136,764
1,217,985 2,391,536 2,496,516 � Net income 190,633 165,452 379,059
327,154 Net income per diluted share 0.93 0.82 1.86 1.62 � Net
operating income 187,216 165,986 370,846 325,935 Net operating
income per diluted share 0.92 0.82 1.82 1.61 Second quarter
highlights included: Return on equity was 22.9% on an annualized
basis. GAAP combined ratio was 87.9%. Net investment income grew
16% to $169 million. Paid loss ratio was 42%. Commenting on the
Company�s activities, William R. Berkley, chairman and chief
executive officer, said: �We've completed another excellent
quarter. Our underwriting results continue to be strong. The
strength of our balance sheet is outstanding and our assets have
not been adversely impacted by the various uncertainties in the
current environment. �Investment income increased as a result of
our growing asset base and higher interest rates. While we have a
significant portfolio of mortgage backed securities, they contain
virtually no sub-prime element. Our direct real estate
participation continues to perform well as has our portfolio of
equity investments. There are a significant number of capital gains
embedded in our portfolio that should become realized over the next
several years. �The insurance pricing environment is continuing its
downward trend with modest acceleration. On average, year over year
prices were down approximately five percent for the quarter. While
it takes five quarters for these prices to be fully reflected in
our financial statements, it is very likely that over time our
underwriting profitability will decline. There are still some
attractive opportunities but they are fewer and harder to find. �We
continue to manage our capital and expect to deliver an after tax
return in excess of twenty percent again this year. We believe that
our Company has the ability to deliver outstanding returns for our
shareholders throughout the cycle,� Mr. Berkley concluded. Webcast
Conference Call The Company will hold its quarterly conference call
with analysts and investors to discuss its earnings and other
information on Tuesday, July 24, 2007 at 9:00 a.m. eastern time.
The conference call will be webcast live on the Company's website
at www.wrberkley.com. A recording of the call will be available on
the Company's website approximately two hours after the end of the
conference call. About W. R. Berkley Corporation Founded in 1967,
W. R. Berkley Corporation is an insurance holding company that is
among the largest commercial lines writers in the United States and
operates in five segments of the property casualty insurance
business: specialty insurance, regional property casualty
insurance, alternative markets, reinsurance and international.
Forward Looking Information This is a �Safe Harbor� Statement under
the Private Securities Litigation Reform Act of 1995. Any
forward-looking statements contained herein, including statements
related to our outlook for the industry and for our performance for
the year 2007 and beyond, are based upon the Company�s historical
performance and on current plans, estimates and expectations. The
inclusion of this forward-looking information should not be
regarded as a representation by us or any other person that the
future plans, estimates or expectations contemplated by us will be
achieved. They are subject to various risks and uncertainties,
including but not limited to, the cyclical nature of the property
casualty industry, the long-tail and potentially volatile nature of
the insurance and reinsurance business, product demand and pricing,
claims development and the process of estimating reserves, the
uncertain nature of damage theories and loss amounts, natural and
man-made catastrophic losses, including as a result of terrorist
activities, the impact of competition, the success of our new
ventures or acquisitions and the availability of other
opportunities, the availability of reinsurance, exposure as to
coverage for terrorist acts, our retention under The Terrorism Risk
Insurance Act of 2002, as amended (�TRIA�), and the potential
expiration of TRIA, the ability of our reinsurers to pay
reinsurance recoverables owed to us, investment risks, including
those of our portfolio of fixed income securities and investments
in equity securities, including merger arbitrage investments,
exchange rate and political risks relating to our international
operations, legislative and regulatory developments, including
those related to alleged anti-competitive or other improper
business practices in the insurance industry, changes in the
ratings assigned to us by ratings agencies, the availability of
dividends from our insurance company subsidiaries, our ability to
successfully acquire and integrate companies and invest in new
insurance ventures, our ability to attract and retain qualified
employees, and other risks detailed from time to time in the
Company�s filings with the Securities and Exchange Commission.
These risks could cause actual results of the industry or our
actual results for the year 2007 and beyond to differ materially
from those expressed in any forward-looking statement made by or on
behalf of the Company. Any projections of growth in the Company�s
net premiums written and management fees would not necessarily
result in commensurate levels of underwriting and operating
profits. Forward-looking statements speak only as of the date on
which they are made, and the Company undertakes no obligation to
update publicly or revise any forward-looking statement, whether as
a result of new information, future developments or otherwise.
Consolidated Financial Summary (Amounts in thousands, except per
share data) � � Second Quarter Six Months 2007 2006 2007 2006
Revenues: Net premiums written $ 1,136,764 $ 1,217,985 $ 2,391,536
$ 2,496,516 Change in unearned premiums � 34,876 � (31,305) �
(64,963) � (163,459) Premiums earned 1,171,640 1,186,680 2,326,573
2,333,057 Net investment income 168,943 145,067 334,364 276,564
Service fees 25,343 26,966 51,336 53,560 Realized investment gains
(losses) 5,280 (673) 12,670 2,002 Other income � 15,377 � 306 �
20,661 � 697 Total revenues � 1,386,583 � 1,358,346 � 2,745,604 �
2,665,880 � Expenses: Losses and loss expenses 703,669 742,110
1,388,816 1,443,308 Other operating expenses 389,791 358,926
775,022 714,580 Interest expense � 22,700 � 23,272 � 43,400 �
46,741 Total expenses � 1,116,160 � 1,124,308 � 2,207,238 �
2,204,629 � Income before income taxes and minority interest
270,423 234,038 538,366 461,251 � Income tax expense (79,376)
(67,883) (158,511) (132,806) Minority interest � (414) � (703) �
(796) � (1,291) Net income $ 190,633 $ 165,452 $ 379,059 $ 327,154
� Net income per share: Basic $ 0.98 $ 0.86 $ 1.96 $ 1.70 Diluted $
0.93 $ 0.82 $ 1.86 $ 1.62 � Average shares outstanding: Basic
194,345 192,337 193,775 192,041 Diluted 203,922 202,450 203,930
202,450 Operating Results by Segment (Amounts in thousands, except
ratios (1)) � Second Quarter Six Months 2007 2006 2007 2006
Specialty: Gross premiums written $ 480,674 $ 521,825 $ 938,526 $
996,126 Net premiums written 452,610 496,017 886,585 943,580
Premiums earned 442,110 443,212 885,565 861,457 Pre-tax income
136,843 112,732 264,555 219,218 Loss ratio 55.7% 60.7% 56.9% 60.3%
Expense ratio 26.4% 25.0% 26.2% 25.2% GAAP combined ratio 82.1%
85.7% 83.1% 85.5% � Regional (2): Gross premiums written $ 371,879
$ 372,481 $ 749,297 $ 737,147 Net premiums written 330,057 322,910
655,430 634,291 Premiums earned 309,812 299,613 614,179 589,575
Pre-tax income 51,903 43,930 107,224 98,560 Loss ratio 60.1% 62.0%
59.3% 59.4% Expense ratio 31.0% 30.2% 31.0% 30.6% GAAP combined
ratio 91.1% 92.2% 90.3% 90.0% � Alternative Markets: Gross premiums
written $ 123,906 $ 123,843 $ 404,334 $ 397,291 Net premiums
written 100,808 102,709 351,331 341,131 Premiums earned 159,266
162,028 321,930 324,769 Pre-tax income 63,592 74,520 131,310
141,642 Loss ratio 57.2% 51.8% 56.7% 53.6% Expense ratio 24.2%
23.1% 23.4% 22.2% GAAP combined ratio 81.4% 74.9% 80.1% 75.8% �
Reinsurance: Gross premiums written $ 210,053 $ 258,628 $ 415,235 $
505,661 Net premiums written 190,705 242,957 381,566 478,766
Premiums earned 196,986 226,307 382,264 451,549 Pre-tax income
45,892 34,037 92,299 64,096 Loss ratio 70.2% 74.5% 67.5% 73.6%
Expense ratio 26.9% 25.1% 29.5% 26.3% GAAP combined ratio 97.1%
99.6% 97.0% 99.9% � International: Gross premiums written $ 79,167
$ 64,570 $ 141,649 $ 115,957 Net premiums written 62,584 53,392
116,624 98,748 Premiums earned 63,466 55,520 122,635 105,707
Pre-tax income 7,900 10,820 15,271 16,732 Loss ratio 65.8% 62.4%
65.5% 64.0% Expense ratio 33.3% 30.1% 32.5% 31.7% GAAP combined
ratio 99.1% 92.5% 98.0% 95.7% Operating Results by Segment
(continued) (Amounts in thousands, except ratios (1)) � Second
Quarter Six Months � 2007 � 2006 � 2007 � 2006 Corporate and
Eliminations: Realized investment gains (losses) $ 5,280 $ (673) $
12,670 $ 2,002 Interest and other, net (40,987) (41,328) (84,963)
(80,999) Pre-tax loss (35,707) (42,001) (72,293) (78,997) � Total:
Gross premiums written $ 1,265,679 $ 1,341,347 $ 2,649,041 $
2,752,182 Net premiums written 1,136,764 1,217,985 2,391,536
2,496,516 Premiums earned 1,171,640 1,186,680 2,326,573 2,333,057
Pre-tax income 270,423 234,038 538,366 461,251 Loss ratio 60.1%
62.5% 59.7% 61.9% Expense ratio 27.8% 26.4% 28.0% 26.7% GAAP
combined ratio 87.9% 88.9% 87.7% 88.6% (1) Loss ratio is losses and
loss expenses incurred expressed as a percentage of premiums
earned. Expense ratio is underwriting expenses expressed as a
percentage of premiums earned. Underwriting expenses do not include
expenses related to insurance services or unallocated corporate
expenses. For the international segment, the loss and expense
ratios do not include life insurance business. GAAP combined ratio
is the sum of the loss ratio and the expense ratio. (2) For the
second quarters of 2007 and 2006, weather-related losses were $16
million and $20 million, respectively. For the first six months of
2007 and 2006, weather-related losses were $22 million and $25
million, respectively. Selected Balance Sheet Information (Amounts
in thousands, except per share data) � June 30, December 31, 2007
2006 � Net invested assets (1) $ 12,656,927 $ 12,012,298 Total
assets 16,626,837 15,656,489 Reserves for losses and loss expenses
8,207,877 7,784,269 Senior notes and other debt 1,121,653 869,187
Junior subordinated debentures 242,056 241,953 Stockholders� equity
(2) 3,571,177 3,335,159 Shares outstanding 192,876 192,772
Stockholders� equity per share 18.52 17.30 (1) Net invested assets
include investments, cash investments and cash equivalents, trading
accounts receivable from brokers and clearing organizations,
trading account securities sold but not yet purchased and unsettled
purchases. (2) Stockholders' equity includes after-tax unrealized
gains from investments and currency translation adjustments of $46
million and $126 million as of June 30, 2007 and December 31, 2006,
respectively. Supplemental Information (Amounts in thousands) �
Second Quarter Six Months Reconciliation of net operating income to
net income: 2007 2006 2007 2006 � Net operating income (1) $
187,216 $ 165,986 $ 370,846 $ 325,935 Realized investment gains
(losses), net of taxes � 3,417 � (534) � 8,213 � 1,219 � Net income
$ 190,633 $ 165,452 $ 379,059 $ 327,154 Return on equity: � Net
Income (2) 22.9% 25.8% 22.7% 25.5% � Net operating income (2) 22.5%
25.9% 22.2% 25.4% Cash flow: � � � � Cash flow from operations
before cash transfers to/from trading account (3) $ 279,993 $
341,364 $ 637,214 $ 777,530 � Trading account transfers � - �
(25,000) � - � (225,000) � Cash flow from operations $ 279,993 $
316,364 $ 637,214 $ 552,530 (1) Net operating income is a non-GAAP
financial measure defined by the Company as net income excluding
realized investment gains and losses. Management believes that
excluding realized investment gains and losses, which result
primarily from changes in general economic conditions, provides a
useful indicator of trends in the Company's underlying operations.
(2) Return on equity represents net income and net operating income
expressed on an annualized basis as a percentage of beginning of
year stockholders' equity. (3) Cash flow before trading account
transfers is a non-GAAP financial measure that excludes cash
contributions to and withdrawals from the arbitrage trading
account. Management believes that cash transfers to and withdrawals
from the arbitrage trading account are the result of changes in
investment allocations and that excluding such transfers provides a
useful measure of the Company's cash flow. Reclassifications have
been made to the 2006 cash flow amounts to conform with the
presentation in 2007.
W.R. Berkley (NYSE:BER)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
W.R. Berkley (NYSE:BER)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024