Monday, Insurance holding company W.R. Berkley Corp. (WRB) reported a loss in the first quarter compared to profit in the corresponding quarter last year, reflecting lower premiums earned as well as losses from unrealized investment and currency translation.
The Greenwich, Connecticut-based company reported a net loss attributable to common shareholders for the first quarter of $20.35 million or $0.13 per share, compared to net income attributable to common shareholders of $188.44 million or $1.03 per share in the year-ago quarter.
On average, thirteen analysts polled by Thomson Reuters expected the company to earn $0.37 per share for the quarter. Analysts' estimates typically exclude special items.
Premiums earned for the quarter decreased to $979.21 million from $1.12 billion in the earlier year. Net premiums written were $1.02 billion, compared to $1.16 billion last year.
Net operating income for the period was down to $42 million or $0.25 per share from $153 million or $0.83 per share in the prior year.
Total revenues for the quarter decreased to $963.62 million from $1.38 billion in the prior-year quarter. Five analysts had a revenue consensus of $1.11 billion for the first quarter.
W. R. Berkley has five segments - Specialty, Regional, Alternative Markets, Reinsurance, and International. Segment-wise, Specialty net premiums written declined to $322.56 million from $397.79 million a year ago, while Regional net premiums written were $282.04 million, compared to $323.58 million in the previous year. Alternative Markets posted $225.72 million of net premiums written, in comparison with $238.04 million in the prior year.
Net investment income was $138.22 million, down from $138.77 million in the prior year.
Total expenses eased to $1.02 billion from $1.11 billion in the preceding year.
William Berkley, chairman and chief executive officer commented, "We are beginning to see greater contributions from our start-up ventures and anticipate they will provide a significant benefit to earnings by the first quarter of 2010. The combination of our start-ups and an improving cycle will substantially increase our momentum."
WRB closed Monday's regular trading session at $22.48, down $0.58 or 2.52% on a volume of 1.61 million shares.
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