Printer Friendly

W.R. BERKLEY CORPORATION ANNOUNCES FIRST QUARTER RESULTS OF OPERATIONS

 GREENWICH, Conn., April 30 /PRNewswire/ -- W.R. Berkley Corporation (NASDAQ: BKLY), an insurance holding company, today announced that in the first quarter of 1993, net income before the effect of a change in accounting principle was $13,362,000 ($.74 per share) in comparison with $14,196,000 ($.79 per share) recorded during the comparable 1992 period. After including the cumulative effect of a change in accounting principle resulting from the required adoption of FASB Statement 109, Accounting for Income Taxes, net income for the 1992 quarterly period was restated to $20,098,000 ($1.12 per share). The 1993 results do not include the cumulative effects of any changes in accounting principles.
 Operating income, which is net income before realized investment gains or losses, was $11,471,000 ($.64 per share) in the first quarter of 1993 and $13,539,000 ($.76 per share) during the comparable 1992 period.
 Net premiums written during the first quarter of 1993 increased by 5 percent to $107,776,000 from $102,289,000 written in the comparable 1992 period. Approximately two thirds of the increase was produced by three new business units which commenced operations during the latter half of 1992. In addition, premiums written by the company's regional insurance companies also increase, primarily as a result of growth in Texas where market conditions have remained favorable for profitable growth. Premium volume in the company's specialty operations declined slightly due to the highly competitive environment for these lines of business.
 William R. Berkley, chairman of the board and chief executive officer, noted that the first quarter operating results reflect the difficult operating conditions prevalent in the property casualty business. Mr. Berkley stated, "Although each of our operating segments continued to perform well relative to their competitors, our first quarter results were impacted by catastrophe losses as well as the effects of intense price competition and declining investment yields. The current competitive pricing environment is likely to result in the continuation of unsatisfactory returns for the balance of 1993. The financial condition of our industry indicates a need for higher price levels, but this seems to have gone unnoticed by many industry participants. However, we still see opportunities for profitable growth and we are pleased with the progress of our three new ventures, each of which has already achieved profitability."
 W.R. Berkley Corporation is a holding company which operates, through its subsidiaries, in three segments of the insurance business: regional property casualty insurance; specialty lines of insurance (including excess and surplus lines, commercial transportation and reinsurance); and insurance services operations (including management of alternative insurance market mechanisms).
 W. R. BERKLEY CORPORATION
 (Amounts in thousands, except per share data)
 Three months ended March 31 1993 1992
 Revenues:
 Net premiums written $107,776 $102,289
 Change in unearned premiums (5,290) 1,348
 Premiums earned 102,486 103,637
 Net investment income 21,646 23,696
 Management fees and
 commission income earned 13,812 13,644
 Realized gains on investments 2,866 996
 Other income 300 194
 Total revenues 141,110 142,167
 Operating costs and expenses:
 Losses and loss expenses (71,372) (73,233)
 Other operating costs and expenses (48,558) (46,435)
 Interest expense (5,143) (4,579)
 Income before Federal income
 taxes and cumulative effect
 of change in accounting principle 16,037 17,920
 Federal income tax provision (2,675) (3,724)
 Income before cumulative effect
 of change in accounting principle 13,362 14,196
 Cumulative effect of change in
 accounting principle (A) -- 5,902
 Net income 13,362 20,098
 Net income per share:
 Income before cumulative effect
 of change in accounting principle .74 .79
 Cumulative effect of change
 in accounting principle (A) -- .33
 Net income .74 1.12
 Average shares outstanding 18,026 17,910
 (A) During the fourth quarter of 1992, the company adopted SFAS 109, accounting for income taxes. In accordance with the provisions of this statement, the cumulative effect increased, by restatement, net income for the first quarter of 1992 by $5,902,000 ($.33 per share). In addition, net income for the first quarter of 1992 decreased, by restatement, $339,000 ($.02 per share) to reflect a change in the Federal income tax provision applicable to realized investment gains.
 W. R. BERKLEY CORPORATION
 Addendum No. 1 to Press Release Dated April 30, 1993
 Operating Statistics by Insurance Industry Segment
 (Amounts in thousands)
 Three months ended March 31 1993 1992
 Regional Property Casualty
 Insurance:
 Net premiums written $66,556 $60,791
 Total revenues 73,275 66,784
 Pre-tax operating income(A) 6,503 8,177
 Loss ratio 64.8 pct 62.7 pct
 Expense ratio 35.2 pct 34.2 pct
 Policyholders' dividend ratio 1.2 pct 1.0 pct
 Combined ratio (B) 101.2 pct 97.9 pct
 Specialty Lines:
 Net premiums written 41,220 41,498
 Total revenues 53,956 60,467
 Pre-tax operating income (A) 10,757 10,395
 Loss ratio 76.1 pct 80.9 pct
 Expense ratio 26.6 pct 25.9 pct
 Policyholders' dividend ratio -- --
 Combined ratio (B) 102.7 pct 106.8 pct
 Combined:
 Net premiums written $107,776 $102,289
 Total revenues 127,231 127,251
 Pre-tax operating income (A) 17,260 18,572
 Loss ratio 68.9 pct 70.4 pct
 Expense ratio 32.0 pct 30.9 pct
 Policyholders' dividend ratio .8 pct .6 pct
 Combined ratio (B) 101.7 pct 101.9pct
 (A) Pre-tax operating income represents earnings before the effects of realized gains or losses.
 (B) Based on statutory accounting practices.
 W. R. BERKLEY CORPORATION
 Addendum No. 2 To Press Release Dated April 30, 1993
 Supplementary Information
 (Amounts in thousands, except per share data)
 Three months ended March 31 1993 1992
 After-tax income amounts:
 Operating income $11,471 $13,539
 Realized investment gains 1,891 657
 Cumulative effect of change in
 accounting principle -- 5,902
 Net income 13,362 20,098
 After-tax per share income amounts:
 Operating income .64 .76
 Realized investment gains .10 .03
 Cumulative effect of change in
 accounting principle -- .33
 Net income .74 1.12
 BALANCE SHEET INFORMATION
 3/31/93 12/31/92
 Investments:
 Invested cash $ 169,681 $ 118,387
 Fixed maturity securities 1,284,868 1,245,201
 Equity securities 38,558 32,494
 Total investments 1,483,107 1,396,082
 Long-term debt 254,726 205,001
 Stockholders' equity 489,044 474,396
 Common shares outstanding 18,031 18,020
 Stockholders' equity per share 27.12 26.33
 W.R. BERKLEY CORPORATION
 Special Addendum to Press Release Dated March 4, 1993
 1992 Restatement of Results - Adoption of SFAS 109
 (amounts in thousands except per share data)
 Periods ended Three months Nine months
 3/31/92 6/30/92 9/30/92 9/30/92
 After-tax inc. amounts:
 Operating inc. $13,539 $11,829 $ 9,328 $34,696
 Realized gains on
 investments:
 As previously
 reported 996 852 549 2,397
 Restatement of federal
 inc. tax provision(A) (339) (289) (187) (815)
 Restated realized gains
 on investments 657 563 362 1,582
 Cumulative effects of
 change on account.
 principle(A) 5,902 -- -- 5,902
 Restated net inc. $20,098 $12,392 $ 9,690 $42,180
 After-tax inc. per
 share amounts:
 Operating income $ .76 $ .66 $ .52 $ 1.94
 Realized gains on
 investments:
 As previously
 reported .05 .05 .03 .13
 Restatement for federal
 inc. tax provision(A) (.02) (.02) (.01) (.05)
 Restated realized gains
 on investments .03 .03 .02 .08
 Cumulative effects of
 change on accounting
 principle(A) .33 -- -- .33
 Restated net income
 per share $ 1.12 $ .69 $ .54 $ 2.35
 (A) The company adopted SFAS 109 in the fourth quarter of 1992, effective Jan. 1, 1992. Accordingly, the first quarter results have been restated for the cumulative effect of this change in accounting principle. The provision for Federal income taxes, applicable to realized gains on investments, has also been restated for the first three quarters of 1992.
 -0- 4/30/93
 /CONTACT: John D. Vollaro, executive vice president of W.R. Berkley, 203-629-2880/
 (BKLY)


CO: W.R. Berkley Corporation ST: Connecticut IN: INS SU: ERN

LR-SO -- NY071 -- 3341 04/30/93 15:24 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 30, 1993
Words:1343
Previous Article:SAVE $500.00 ON A WAIKIKI VACATION WITH HILTON HAWAIIAN VILLAGE AND VISA
Next Article:UNITED MOBILE HOMES, INC. REPORTS FIRST QUARTER EARNINGS
Topics:


Related Articles
W. R. BERKLEY ANNOUNCES RESULTS OF OPERATIONS FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 1991
W.R. BERKLEY ANNOUNCES RESULTS OF OPERATIONS FOR THE QUARTER AND YEAR ENDED DEC. 31, 1991
W.R. BERKLEY ANNOUNCES RESULTS OF OPERATIONS FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF 1992
W. R. BERKLEY CORPORATION ANNOUNCES RESULTS OF OPERATIONS FOR THE FIRST NINE MONTHS AND THIRD QUARTER OF 1992
W. R. BERKLEY CORPORATION ANNOUNCES RESULTS OF OPERATIONS FOR THE QUARTER AND YEAR ENDED DEC. 31, 1992
W.R. BERKLEY INCREASES DIVIDEND
W.R. BERKLEY CORPORATION ANNOUNCES RESULTS OF OPERATIONS FOR SECOND QUARTER AND FIRST SIX MONTHS OF 1993
W. R. BERKLEY CORPORATION ANNOUNCES RESULTS OF OPERATIONS FOR THIRD QUARTER AND FIRST NINE MONTHS OF 1993
SIGNET STAR HOLDINGS EXPECTS EARTHQUAKE LOSSES
W. R. BERKLEY CORPORATION ANNOUNCES FIRST QUARTER RESULTS OF OPERATIONS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters