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W.R. Berkley Corporation WRB is slated to report first-quarter 2025 earnings on April 21, after market close. The insurer delivered an earnings surprise in each of the last four reported quarters.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Factors to Consider
Gross premiums written in the Insurance segment are likely to have benefited from the well-performing other liability, short-tail lines and commercial auto. We expect the metric to be $3 billion, indicating an increase of 5.5% from the year-ago reported number.
Reinsurance & Monoline Excess segment’s gross premiums written are expected to have improved, banking on well-performing monoline excess and property reinsurance. We expect the metric to be $452 million, suggesting a rise of 2.4% from the year-ago reported number.
The Zacks Consensus Estimate for first-quarter 2025 premiums earned is pegged at $2.98 billion, indicating an increase of 8% from the year-ago reported quarter. Our estimate for the metric is pegged at $2.84 billion, indicating a 2.9% upside from the year-ago reported number.
Improving cash flows and an increase in fixed-maturity income from a growing portfolio with higher yields are likely to have aided net investment income. The Zacks Consensus Estimate for first-quarter 2025 net investment income is pegged at $346 million, indicating an increase of 8.1% from the year-ago reported quarter. We estimate the metric to be $380.4 million, indicating an increase of 18.9% from the year-ago reported number.
Improvement in premiums, coupled with higher investment income, is likely to have aided revenues in the to-be-reported quarter. The Zacks Consensus Estimate is pegged at $3.48 billion, indicating an upside of 7.5% from the year-ago reported figure.
Higher losses and loss expenses, expenses from non-insurance business, higher investment in technology and data and analytics, as well as new startup operating unit expenses, are likely to have increased expenses. We expect total expenses to increase 4.7% to $2.8 billion.
Improvements in net premiums earned and initiatives driving technological and operational efficiencies throughout the business are likely to have contributed to the improved expense ratio. We estimate the metric to be 29.3 in the to-be-reported quarter.
Underwriting profitability is likely to have benefited from prudent pricing and increased exposure. However, catastrophe losses relating to the recent California wildfires are likely to have weighed on the improvement. The Zacks Consensus Estimate for the combined ratio is pegged at 91, while our estimate is pegged at 89.2.
Continued share buybacks are likely to have provided additional support to the bottom line. The Zacks Consensus Estimate for earnings per share is pegged at $1.01, indicating a 2.8% decrease from the year-ago quarter’s reported number.