Revenue and Margins
- Q4 2024 revenue: USD 3.6676 billion; YoY growth: 13.85%; QoQ growth: 7.86% (Q3 2024 revenue: USD 3.4004 billion).
- Gross profit: USD 925.979 million; gross margin: 25.25% (YoY margin expansion supported by favorable mix and pricing).
- Operating income: USD 728.301 million; operating margin: 19.86% (YoY margin up ~? percentage points; QoQ up meaningfully).
- Net income: USD 576.101 million; net margin: 15.71%.
- EPS (diluted): USD 1.44; EPS (basic): USD 1.45; Weighted-average shares dil. ~400.9 million.
Profitability and Efficiency
- EBITDA: USD 746.407 million; EBITDA margin: 20.35% (EBITDA/Revenue).
- Interest expense: USD 31.751 million; tax expense: USD 152.958 million; effective tax rate: 21.0%.
Cash Flow and Capital Allocation
- CFO: USD 810.033 million; Free cash flow: USD 796.08 million.
- Cash at period end: USD 1.9747 billion; Cash at beginning: USD 1.5732 billion; Net change in cash: USD 401.509 million.
- Dividends paid: USD 220.439 million; Share repurchases: USD 67.412 million (net).
- investments: Short-term investments: USD 22.353 billion; Total cash and short-term investments: USD 24.328 billion.
Balance Sheet and Leverage
- Total assets: USD 40.567 billion; Total liabilities: USD 32.1598 billion; Total stockholders’ equity: USD 8.395 billion.
- Long-term debt: USD 2.841 billion; Net debt: USD 0.866 billion; Debt capacity metrics show a conservative leverage profile (long-term debt to capitalization ~25.2%, total debt to capitalization ~26.7%).
- Liquidity and capital adequacy remain strong, underpinned by substantial cash and investment holdings and solid interest coverage (~22.3x).
Valuation and Relative Positioning
- Price metrics (as indicated in the provided ratios): P/E ~10.18x, P/B ~2.80x, P/S ~6.40x, dividend yield ~0.94%. These levels imply a defensively valued insurer with quality earnings relative to peers.
- Net income growth YoY ~45%, EPS growth YoY ~~48%, and ROE ~6.86% reflect a constructive earnings mix and capital discipline.
Key takeaways for investors: Berkley’s Q4 2024 results underscore a lean, capital-light underwriting model complemented by a durable investment portfolio and strong operating cash flow. The stock’s valuation appears attractive versus many peers, given the quality of earnings, balance sheet strength, and a disciplined capital return program. The main sensitivity remains the investment portfolio’s market exposure and the insurance cycle’s impact on pricing and reserve adequacy.