(BER) - W.R. Berkley Corp - increased share repurchase authorization by 20 million shares

W.R. Berkley Corporation (BER) reported solid results for the third quarter and first nine months of the year in late October. On Nov 3, the Board of Directors increased the company's share repurchase authorization by 20 million shares and declared a quarterly cash dividend of four cents per share. BER’s return on equity nearly doubles that of the industry average—25% compared to 13%. Full Analysis W.R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates in five segments of the property casualty insurance business: specialty insurance, regional property casualty insurance, alternative markets, reinsurance and international. On Oct 25, BER reported third-quarter earnings per share of 86 cents per share. The result beat the Street’s estimate by three cents and soared past earnings in the prior-year period by 45.8%. Revenues increased 7.9% to $1.37 billion from $1.27 billion, while net premiums written rose 7.1% to $1.21 billion from $1.13 billion. BER is scheduled to release its fourth-quarter results on Feb 12. Chairman and CEO William R. Berkley stated, “Our company has continued to deliver excellent returns while growing in an increasingly competitive environment. Our expansion into new lines of business and the growth of our existing activities have enabled us to maintain a growth rate in excess of the industry.” For the first nine months of the year, profits ballooned 32.9% to $501.5 million, compared to $377.5 million for the first nine months of last year. Revenues climbed 10.4% to $4.03 billion from $3.65 billion, while net premiums written experienced a 7.5% increase to $3.71 billion from $3.45 billion. The company’s combined ratio for the quarter, a measure of profitability for insurance companies, was 88.5% compared to 92.1% for the same period in 2005. For the first nine months of the year, the combined ratio was 88.6% compared to 90.2% for the same period in 2005. A ratio less than 100% indicates that the company is turning an underwriting profit, while a ratio greater than 100% indicates one that is paying out more money in claims versus receiving via premiums. On Nov 3, the Board of Directors increased the company's share repurchase authorization by 20 million shares. At the time of the announcement, BER had approximately 2.6 million shares remaining that it could buy back under previously approved authorizations. The Board also declared a regular quarterly cash dividend of four cents per common share of stock. BER has a current dividend yield of 0.46% and a five-year average dividend yield of 0.70%. The company was named by Forbes to its Platinum 400 list, which identifies the best of the biggest publicly traded companies in America. Companies are selected after a thorough review of financial metrics, Wall Street forecasts, corporate governance ratings and other public information. BER’s return on equity, a common measure of profitability, nearly doubles that of the industry average—25% compared to 13%. BER is a Zacks #2 Rank (Buy) stock. Zacks #2 Rank stocks have generated an average annual return of 21.6% since 1988. Because the Zacks Rank has a market cap bias, Growth & Income investors may find a greater number of large-cap stocks by considering both Zacks #1 Rank (Strong Buy) and Zacks #2 Rank (Buy) stocks in their selection criteria. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home