Greenwich, CT – W. R. Berkley Corporation (NYSE: WRB) recently reported its first quarter 2023 results.
First quarter highlights included:
- Return on equity of 17.4%.
- Book value per share grew 7.2% prior to dividends and share repurchases.
- Net investment income grew 28.8% to $223.4 million.
- Average rate increases excluding workers’ compensation were approximately 8.3%.
- Pre-tax underwriting income of $234.4 million.
- The current accident year combined ratio before catastrophe losses of 1.9 loss ratio points was 87.7%.
- The reported combined ratio was 90.6%, including current accident year catastrophe losses of $47.9 million and prior year development principally from property catastrophe losses of approximately $24 million.
- Total capital returned to shareholders was $293.8 million, consisting of $132.3 million of special dividends, $26.3 million of regular dividends and $135.2 million of share repurchases.
The Company commented:
The Company reported strong results for the first quarter of 2023, with continued strong underwriting performance and significant growth in investment income. The annualized return on equity was 17.4% and growth in book value per share, prior to dividends and share repurchases, was 7.2%.
The business continued to grow in areas that we anticipate will meet or exceed our targeted risk-adjusted return. While there is greater evidence that market segments and lines of business are not all moving in lock-step, our structure and discipline enable us to execute on and manage each of these cycles to optimize profitability, even as we maintain a prudent view of loss trends. We continue to carefully evaluate the available opportunities to deploy capital as we selectively expand our business.
Net investment income grew almost 29% during the quarter as an increasingly greater portion of the fixed-maturity portfolio was (re)invested at higher interest rates. We maintained the short duration and high quality of our fixed-maturity portfolio, given the inverted yield curve and market volatility.
The Company continues to focus on risk-adjusted return in all aspects of its business. Over time, this discipline has allowed us to navigate risks and embrace opportunities to deliver superior results for our shareholders. We remain encouraged about the opportunities that we see in 2023 and beyond.
The complete results release is available here: W. R. Berkley CorporationFirst Quarter 2023 Results
Source: BusinessWire