W. R. Berkley Corporation has reported strong financial results for the first quarter of 2024. The company's net income to common stockholders increased by 50.4% to $442 million, with a corresponding rise in net income per diluted share to $1.64 from $1.06 in the same period last year. Operating income also saw a substantial increase of 53.4% to a record $423 million, resulting in an operating income per diluted share of $1.56, up from $1.00 in the first quarter of 2023.
The return on equity for the company surged to 23.7% from 17.4% in the prior year, while the operating return on equity reached 22.7%, up from 16.4% in the same period. This demonstrates the company's improved profitability and efficiency in utilizing its shareholders' equity.
Several key financial metrics also showed significant growth. Gross premiums written for the first quarter of 2024 amounted to $3.36 billion, up from $3.05 billion in the first quarter of 2023. Net premiums written increased to $2.85 billion from $2.57 billion in the same period, reflecting a growth of 10.7%.
Additionally, the company achieved a 43.2% increase in net investment income, reaching a record $319.8 million in the first quarter of 2024, indicating strong performance in its investment activities.
W. R. Berkley Corporation also demonstrated robust underwriting performance, with pre-tax underwriting income growing by 31.8% to $309.0 million. The company's average rate increases, excluding workers' compensation, were approximately 7.8%, further contributing to its underwriting profitability.
Moreover, the company's operating cash flow increased by an impressive 67.6% to $746.2 million, highlighting its ability to generate substantial cash from its core operations.
As a result of these announcements, the company's shares have moved -4.1% on the market, and are now trading at a price of $80.02. For the full picture, make sure to review W. R. Berkley's 8-K report.
