W.R. Berkley (WRB) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended September 2023, W.R. Berkley (WRB) reported revenue of $3.07 billion, up 10.1% over the same period last year. EPS came in at $1.35, compared to $1.01 in the year-ago quarter.
The reported revenue represents a surprise of +1.39% over the Zacks Consensus Estimate of $3.03 billion. With the consensus EPS estimate being $1.14, the EPS surprise was +18.42%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how W.R. Berkley performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Loss Ratio - Insurance Segment (Underwriting Ratios): 62.6% versus 63.7% estimated by three analysts on average.
Combined Ratio - Total: 90.2% compared to the 92.2% average estimate based on three analysts.
Expense Ratio: 28.3% versus the three-analyst average estimate of 28.5%.
Net premiums earned: $2.64 billion versus the three-analyst average estimate of $2.62 billion. The reported number represents a year-over-year change of +8.2%.
Net investment income: $270.94 million versus $255.72 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +33.6% change.
Revenues from non-insurance businesses: $137.12 million versus the three-analyst average estimate of $140.36 million. The reported number represents a year-over-year change of +15.2%.
Net premiums earned- Reinsurance: $322.48 million versus $319.47 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +3.1% change.
Net investment gains (losses)- Net realized gains on investment sales: -$40.86 million versus the two-analyst average estimate of -$53.06 million. The reported number represents a year-over-year change of -38.4%.
Other income (loss): $0.13 million versus the two-analyst average estimate of $0.40 million. The reported number represents a year-over-year change of +60%.
Net premiums earned- Insurance: $2.32 billion versus the two-analyst average estimate of $2.30 billion. The reported number represents a year-over-year change of +8.9%.
Insurance service fees: $22.96 million versus the two-analyst average estimate of $30.34 million. The reported number represents a year-over-year change of -17.8%.
View all Key Company Metrics for W.R. Berkley here>>>
Shares of W.R. Berkley have returned -2.5% over the past month versus the Zacks S&P 500 composite's -4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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