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W.R. Berkley (WRB) Reports Q1 Earnings: What Key Metrics Have to Say

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For the quarter ended March 2024, W.R. Berkley (WRB - Free Report) reported revenue of $3.23 billion, up 12.5% over the same period last year. EPS came in at $1.56, compared to $1.00 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $3.23 billion, representing a surprise of +0.18%. The company delivered an EPS surprise of +6.85%, with the consensus EPS estimate being $1.46.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how W.R. Berkley performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Combined Ratio - Total: 88.8% versus the four-analyst average estimate of 90%.
  • Expense Ratio: 28.6% versus the four-analyst average estimate of 28.7%.
  • Loss Ratio - Insurance Segment (Underwriting Ratios): 60.2% versus the four-analyst average estimate of 61.4%.
  • Net investment income: $319.84 million versus the four-analyst average estimate of $305.38 million. The reported number represents a year-over-year change of +43.2%.
  • Net premiums earned: $2.76 billion compared to the $2.75 billion average estimate based on four analysts. The reported number represents a change of +11% year over year.
  • Revenues from non-insurance businesses: $120.99 million versus $130.25 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2.6% change.
  • Net investment gains (losses)- Net realized gains on investment sales: $11.50 million compared to the $33.87 million average estimate based on three analysts. The reported number represents a change of -49.1% year over year.
  • Other income (loss): $0.50 million compared to the $0.12 million average estimate based on three analysts. The reported number represents a change of +363.6% year over year.
  • Insurance service fees: $25.32 million versus the three-analyst average estimate of $32.63 million. The reported number represents a year-over-year change of -22.9%.
  • Net premiums earned- Reinsurance: $365.58 million versus $318.10 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +18.1% change.
  • Net premiums earned- Insurance: $2.40 billion compared to the $2.40 billion average estimate based on two analysts. The reported number represents a change of +9.9% year over year.
View all Key Company Metrics for W.R. Berkley here>>>

Shares of W.R. Berkley have returned -3.8% over the past month versus the Zacks S&P 500 composite's -4.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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