W.R. Berkley Corporation Delivers Record-Breaking 2024 Q4 Earnings with Strong Underwriting Results and Investment Growth
W.R. Berkley Corporation, a leading global insurance company, has announced record-breaking earnings for the fourth quarter of 2024. In a conference call held on January 27, 2025, the company's executives highlighted the key drivers behind this impressive performance.
The full year 2024 closed out with record top-line and bottom-line results, yielding a return on equity of 23.6% and operating return on equity of 22.4%. The fourth quarter saw a 15.5% increase in operating earnings to $453 million or $1.13 per share, with an operating return on equity of 24.3%.
Richard Baio, Chief Financial Officer, attributed the company's success to strong underwriting results combined with growth in its core investment portfolio. The current accident year combined ratio before cat losses of 2.6 loss ratio points was 87.7%, consistent with the full year 2024.
The calendar year combined ratio was 90.2% resulting in $294 million of underwriting income, bringing the full year 2024 to 90.3%. The prior year development was favorable by $1.6 million in the quarter. Drilling down further into the component parts, the current accident year loss ratio ex cat was 59.2%, which ticked up slightly from the prior year due to business mix and remains flat to the full year's 2024 and 2023.
Cat losses increased over the prior year, primarily due to Hurricane Milton, driving the increase quarter-over-quarter of 1.4 loss ratio points. The expense ratio of 28.4% was flat to the prior year quarter, continuing to benefit from record net premiums earned of more than $3 billion and initiatives driving technological and operational efficiencies throughout the business.
The full year 2024 marked another record year on top line, with gross premiums written growing 9.6% to $13.7 billion, while net premiums written grew 9.3%. In the fourth quarter, the Insurance segment's net premiums written increased 9.9% and exceeded $2.6 billion, with growth in all lines of business.
The Reinsurance & Monoline Excess segment grew in property and monoline excess, with a decrease in casualty due to the competitive pricing environment. Moving on to investments, the core portfolio increased 9.4% to $313 million, driven by higher new money rates compared to roll-off book yields and growth in the size of the investment portfolio.
The company's executives expressed their concern for those impacted by recent events such as horrific fires in California and hurricanes throughout 2024, highlighting the industry's value to society. As W.R. Berkley Corporation continues to deliver strong results, it is clear that the company remains committed to its core values and dedication to serving its customers and stakeholders.