W. R. Berkley Corporation reported record third quarter 2024 net income to common stockholders of $365.6 million, an increase from $333.6 million in the prior year's third quarter. Diluted net income per share also rose to $0.91, up from $0.82 in the third quarter of 2023, reflecting strong overall profitability. Operating income for the quarter increased to $373.7 million, or $0.93 per diluted share, compared to $366.6 million, or $0.90 per diluted share, in the same period last year.
The company achieved robust growth in premiums, with gross premiums written reaching $3.63 billion, up from $3.35 billion in Q3 2023. Net premiums written also saw an increase to $3.06 billion, compared to $2.85 billion in the third quarter of 2023. Underwriting results remained strong, with a GAAP combined ratio of 90.9%, which included 3.3 loss ratio points from catastrophe losses.
Investment income continued to be a significant contributor, with net investment income increasing by 19.5% to $323.8 million over the prior year's third quarter. This growth was primarily driven by an increase in fixed-maturity income. The company's operating cash flow was robust at $1.24 billion, contributing to a record year-to-date cash flow of approximately $2.9 billion.
W. R. Berkley's financial position strengthened further, with stockholders' equity surpassing $8 billion for the first time to reach $8.4 billion. The financial leverage ratio stood at 25.2%, marking its lowest level in almost two decades. The company also returned approximately $138 million in capital to shareholders year-to-date through special dividends, regular dividends, and share repurchases.
Management anticipates continued growth in investment income, as new money rates are expected to remain above the current yield of its U.S. fixed-maturity securities. This, coupled with increasing invested assets from record cash flow, positions the company for ongoing success for the remainder of 2024 and beyond.
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