W.R. Berkley posts lower Q1 net income but revenue increases (2025)

Insurance News

By Josh Recamara

W. R. Berkley Corporation reported net income of $417.6 million for the first quarter of 2025, compared to $442.5 million in the same period last year. Earnings per diluted share were $1.04, down from $1.09 a year earlier.

Operating income for the quarter was $404.7 million, or $1.01 per diluted share, compared to $423.3 million, or $1.04 per share, in the first quarter of 2024.

Gross premiums written totaled $3.68 billion, up from $3.36 billion in the prior-year period. Net premiums written increased to $3.13 billion from $2.85 billion. The company attributed the growth to market conditions in several lines of business within its Insurance segment.

Return on equity was reported at 19.9 percent, while operating return on equity was 19.3 percent. These figures are based on annualized net income and operating income as a percentage of beginning-of-year common stockholders’ equity.

The combined ratio for the quarter was 90.9 percent, which included 3.7 percentage points from catastrophe losses amounting to $111.1 million. Excluding catastrophe losses, the current accident year combined ratio was 87.2 percent.

The company reported an average rate increase of 8.3 percent across its portfolio, excluding workers’ compensation. Net investment income rose to $360.3 million from $319.8 million a year earlier. The increase was attributed to higher reinvestment rates and improved investment fund income. Net invested assets reached $30.7 billion by the end of the quarter.

Book value per share rose by 7.1 percent during the quarter, before accounting for dividends and share repurchases.

In a statement, the company said it delivered a 19.9 percent annualized return on beginning-of-year equity, despite what it described as significant catastrophe activity across the industry. Management noted that the combined ratio reflected the company’s approach to underwriting and managing volatility in pursuit of risk-adjusted returns.

The increase in investment income was linked to broader market conditions and the company’s fixed-income portfolio growth, which was supported by continued strength in operating cash flow. Management also cited the ability to scale individual businesses based on market conditions as a factor in supporting its strategy.

Total revenue for the quarter was $3.55 billion, compared to $3.26 billion a year earlier. Net premiums earned were $3.01 billion, while net investment gains totaled $16.4 million. Revenue from non-insurance businesses came to $128.9 million. Insurance service fees amounted to $28.9 million, and other income was $0.5 million.

Total expenses rose to $3.01 billion from $2.68 billion in the prior-year quarter. Loss and loss adjustment expenses were $1.90 billion, while operating costs were $949.9 million. Expenses from non-insurance operations totaled $126.4 million, and interest expense remained steady at $31.7 million.

Income before taxes was $538.6 million, down from $574.1 million a year ago. After accounting for $121.3 million in income tax and $222,000 in noncontrolling interests, net income attributable to common shareholders was $417.6 million. The company reported 399.8 million diluted shares outstanding for the quarter, compared to 405.8 million in the same period last year.