W R Berkley Corporation delivered a solid QQ3 2024 performance, underscoring resilience in its commercial property & casualty (P&C) underwriting and a robust cash engine. Revenue rose 12.2% year-over-year to $3.40 billion, supported by a diversified portfolio across Insurance and Reinsurance segments, and a meaningful contribution from rate adequacy in several lines of business. Net income of $365.6 million and earnings per share of $0.92 reflect stable profitability amid a competitive pricing backdrop, with a margin profile that remains solid for a diversified P&C writer.
Key Performance Indicators
Revenue
Increasing
3.40B
QoQ: 2.61% | YoY: 12.20%
Gross Profit
Increasing
717.26M
21.09% margin
QoQ: 2.71% | YoY: 14.54%
Operating Income
Increasing
474.45M
QoQ: -2.71% | YoY: 12.98%
Net Income
Increasing
365.63M
QoQ: -1.69% | YoY: 9.61%
EPS
Increasing
0.92
QoQ: -1.08% | YoY: 10.84%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $3.400B, up YoY 12.20% and QoQ 2.61%; Gross profit: $717.3M, gross margin 21.09%; Operating income: $474.4M, operating margin 13.95%; Net income: $365.6M, net margin 10.75%; EBITDA: $494.2M; EPS: $0.92 (diluted $0.91); Cash from operations: $1.241B; Free cash flow: $1.228B; Net debt: $1.264B; Long-term debt: $2.837B; Total assets: $40.360B; Total equity: $8.426B; ROE: 4.34%; ROA: 1.01%; Interest coverage: 16.73x; Dividend payout ratio: 34.4%; Dividend yield: 0.56%; Price to book: 2.65x; P/E: 15.26x; Cash and short-term investments: $24.193B.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.40B
12.20%
2.61%
Gross Profit
717.26M
14.54%
2.71%
Operating Income
474.45M
12.98%
-2.71%
Net Income
365.63M
9.61%
-1.69%
EPS
0.92
10.84%
-1.08%
Key Financial Ratios
Gross Profit Margin
Weak
1.00%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Good
15.70%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Good
10.80%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Weak
1.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
4.34%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.43
Current ratio below safe levels, potential liquidity risk
Debt to Equity
Moderate
0.34
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Fair Value
15.26x
P/E ratio in line with market averages
Price to Book
Fair Value
2.65x
Price-to-book ratio reasonable for profitable companies
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