This annual report summarizes the financial performance of W.R. Berkley Corporation in 2002. Key points include:
- Net income, total revenues, premiums written, and underwriting profit all reached record highs in 2002.
- All four domestic operating segments (specialty, alternative markets, reinsurance, and regional) contributed significantly to growth through higher premium volumes and earnings.
- The company benefited from industry trends of higher insurance prices, improved terms and conditions, and a contraction of overall industry capacity amidst widespread balance sheet problems facing competitors.
allstate Quarterly Investor Information 2003 4th Earnings Press Release finance7
Allstate reported strong financial results for Q4 2003 and full year 2003. Net income increased 71% for Q4 and 138.5% for the full year compared to the previous periods. Operating income also increased significantly. For Q4, property-liability underwriting income increased 272% due to higher premiums and continued favorable loss trends, partially offset by higher catastrophe losses. Allstate also increased its quarterly dividend by 22% and added $1 billion to its share repurchase program. The company expects continued momentum and profitability in 2004.
allstate Quarterly Investor Information 2003 2nd finance7
Allstate reported strong financial results for the second quarter of 2003, with net income increasing 70.9% compared to the second quarter of 2002. Operating income increased 32.2% driven by an improvement in Property-Liability Underwriting income. However, catastrophe losses also increased significantly. Overall results were positively impacted by higher premiums, continued improvement in auto and homeowners claim frequencies, and lower prior year reserve strengthening, despite higher catastrophes. Allstate increased its full year 2003 operating income guidance.
This document summarizes Fannie Mae's 2006 10-K investor report. It highlights that in 2006, Fannie Mae's net income decreased 39% to $3.5 billion due to higher administrative and credit-related expenses, despite a 7% increase in its mortgage book of business to $2.5 trillion. It also notes that while Fannie Mae continued to hit regulatory milestones like filing its 2005 10-K, its three business segments saw varying financial performances in 2006, with the Single-Family Credit Guaranty generating $2 billion in net income, down 22% from 2005, and the Capital Markets segment earning $1.7 billion, down 48% from the previous year. The summary emphasizes that F
allstate Quarterly Investor Information Earnings Press Release 2003 3rd finance7
Allstate reported strong financial results for the third quarter of 2003, with net income increasing 177% compared to the third quarter of 2002. Operating income also increased, driven by higher underwriting income in Property-Liability from increased premiums earned and favorable loss trends, partially offset by higher catastrophe losses. Premiums and deposits for Allstate Financial reached a record level. The company increased its guidance for full-year 2003 operating income per share.
This document is Gannett Co., Inc.'s 2005 annual report. It includes the company's financial summary for 2005, a letter to shareholders from the chairman and CEO, and information about the company's operations. The letter discusses leadership changes at Gannett in 2005, the company's financial performance for the year which saw increased revenues and operating cash flow despite challenges, and strategic acquisitions and investments made to expand Gannett's digital offerings and ability to reach audiences across multiple platforms.
Roger Goodell received $29.5 million in total compensation as NFL commissioner in 2011. To analyze if this amount was equitable or excessive, an expert peer group was constructed of large American companies with significant brand equity in the consumer discretionary sector, including media and entertainment firms. Benchmarking against CEO compensation data from these peer companies found that Goodell's compensation placed him between the 42nd and 59th percentiles for total cash compensation and total direct and indirect compensation, suggesting his pay was consistent with market rates for his position.
This document provides a summary of Fannie Mae's 2005 10-K investor report. It highlights that Fannie Mae saw increased net income of $6.3 billion in 2005, up 28% from 2004. Their single-family business saw revenue growth of 13% and net income growth of 15%. Their capital markets business generated $3 billion in net income, up 42% from 2004 levels. The summary also provides financial results and income statements for each of Fannie Mae's business segments for 2005 compared to 2004 and 2003.
allstate Quarterly Investor Information 2006 4th Earnings Press Releasefinance7
Allstate reported 2006 fourth quarter net income of $1.213 billion and operating income of $1.121 billion. Net income per share was $1.93 and operating income per share was $1.78. Catastrophe losses were $279 million for the quarter, down from $657 million in the prior year. The property-liability combined ratio was 85.7% for the quarter and 83.6% for the year, benefiting from lower catastrophe losses. Allstate will provide an outlook for the 2007 property-liability combined ratio excluding catastrophes of 84-86%.
allstate Quarterly Investor Information 2003 4th Earnings Press Release finance7
Allstate reported strong financial results for Q4 2003 and full year 2003. Net income increased 71% for Q4 and 138.5% for the full year compared to the previous periods. Operating income also increased significantly. For Q4, property-liability underwriting income increased 272% due to higher premiums and continued favorable loss trends, partially offset by higher catastrophe losses. Allstate also increased its quarterly dividend by 22% and added $1 billion to its share repurchase program. The company expects continued momentum and profitability in 2004.
allstate Quarterly Investor Information 2003 2nd finance7
Allstate reported strong financial results for the second quarter of 2003, with net income increasing 70.9% compared to the second quarter of 2002. Operating income increased 32.2% driven by an improvement in Property-Liability Underwriting income. However, catastrophe losses also increased significantly. Overall results were positively impacted by higher premiums, continued improvement in auto and homeowners claim frequencies, and lower prior year reserve strengthening, despite higher catastrophes. Allstate increased its full year 2003 operating income guidance.
This document summarizes Fannie Mae's 2006 10-K investor report. It highlights that in 2006, Fannie Mae's net income decreased 39% to $3.5 billion due to higher administrative and credit-related expenses, despite a 7% increase in its mortgage book of business to $2.5 trillion. It also notes that while Fannie Mae continued to hit regulatory milestones like filing its 2005 10-K, its three business segments saw varying financial performances in 2006, with the Single-Family Credit Guaranty generating $2 billion in net income, down 22% from 2005, and the Capital Markets segment earning $1.7 billion, down 48% from the previous year. The summary emphasizes that F
allstate Quarterly Investor Information Earnings Press Release 2003 3rd finance7
Allstate reported strong financial results for the third quarter of 2003, with net income increasing 177% compared to the third quarter of 2002. Operating income also increased, driven by higher underwriting income in Property-Liability from increased premiums earned and favorable loss trends, partially offset by higher catastrophe losses. Premiums and deposits for Allstate Financial reached a record level. The company increased its guidance for full-year 2003 operating income per share.
This document is Gannett Co., Inc.'s 2005 annual report. It includes the company's financial summary for 2005, a letter to shareholders from the chairman and CEO, and information about the company's operations. The letter discusses leadership changes at Gannett in 2005, the company's financial performance for the year which saw increased revenues and operating cash flow despite challenges, and strategic acquisitions and investments made to expand Gannett's digital offerings and ability to reach audiences across multiple platforms.
Roger Goodell received $29.5 million in total compensation as NFL commissioner in 2011. To analyze if this amount was equitable or excessive, an expert peer group was constructed of large American companies with significant brand equity in the consumer discretionary sector, including media and entertainment firms. Benchmarking against CEO compensation data from these peer companies found that Goodell's compensation placed him between the 42nd and 59th percentiles for total cash compensation and total direct and indirect compensation, suggesting his pay was consistent with market rates for his position.
This document provides a summary of Fannie Mae's 2005 10-K investor report. It highlights that Fannie Mae saw increased net income of $6.3 billion in 2005, up 28% from 2004. Their single-family business saw revenue growth of 13% and net income growth of 15%. Their capital markets business generated $3 billion in net income, up 42% from 2004 levels. The summary also provides financial results and income statements for each of Fannie Mae's business segments for 2005 compared to 2004 and 2003.
allstate Quarterly Investor Information 2006 4th Earnings Press Releasefinance7
Allstate reported 2006 fourth quarter net income of $1.213 billion and operating income of $1.121 billion. Net income per share was $1.93 and operating income per share was $1.78. Catastrophe losses were $279 million for the quarter, down from $657 million in the prior year. The property-liability combined ratio was 85.7% for the quarter and 83.6% for the year, benefiting from lower catastrophe losses. Allstate will provide an outlook for the 2007 property-liability combined ratio excluding catastrophes of 84-86%.
Restructuring Completed At American Capital And European Capital June 28 2010Monster12
The document summarizes a debt restructuring completed by American Capital and European Capital in June 2010. It involved paying down $1 billion in cash, and issuing $1.3 billion in new secured debt maturing in December 2013. The restructuring reduced total debt from $4.026 billion to $2.996 billion, and increased shareholders' equity from $2.526 billion to $2.814 billion. This improved the debt to equity ratio from 1.6x to 1.1x. The new debt structure provides flexibility to make new investments with proceeds from asset sales and capital raisings.
In the quarter ended December 31, 2002:
- Revenues increased 6% to $7.5 billion while net income decreased 41% to $256 million compared to the previous year.
- Earnings per share were $0.13, down from $0.21 in the prior year quarter, due to one-time charges including a $83 million write-off related to United Airlines.
- Excluding one-time items, earnings per share increased 13% to $0.17 from $0.15 in the prior year.
This document is a letter from the leadership of General Motors to its stockholders. It summarizes GM's financial performance in 2003, noting record revenue but unmet profit expectations. It identifies challenges like healthcare costs and foreign competition. However, it emphasizes GM's progress in areas like new vehicle development, global coordination, and brand differentiation. It outlines an optimistic outlook based on GM's strengths, and promises an onslaught of exciting new products to strengthen its position.
allstate Quarterly Investor Information 2002 4th finance7
Allstate reported their fourth quarter and full year 2002 results. Some key highlights:
- Q4 2002 net income was $447 million, up 69% from Q4 2001. Full year 2002 net income was $1.13 billion, down slightly from 2001.
- Q4 2002 operating income was $618 million, up 100% from Q4 2001. Full year 2002 operating income was $2.08 billion, up from $1.49 billion in 2001.
- Results were driven by increased premiums earned, improved loss frequencies, and increased investment income, partly offset by higher claims severities and catastrophe losses.
- For 2003, Allstate expects operating income per share of $3.20-$3
This document is a letter from GM's CEO to stockholders summarizing GM's performance in 2007. It discusses GM's continued efforts to transform the company through cost reductions, new vehicle launches, and addressing legacy costs. While adjusted earnings improved, GM reported a large loss due to a tax valuation allowance. The letter also outlines GM's strategies for growth in emerging markets and advanced propulsion technologies.
allstate Quarterly Investor Information 2001 4thfinance7
- Allstate reported lower operating income for Q4 2001 and full year 2001 compared to the same periods in 2000, due to increased loss costs, restructuring expenses, and lower investment income, partly offset by higher premiums.
- For Q4 2001, operating income was $309 million compared to $584 million in Q4 2000. For full year 2001, operating income was $1.49 billion compared to $2 billion in 2000.
- Allstate provided guidance for 2002 operating income per share of $2.50-$2.70, expecting improvement in results later in 2002 as pricing and underwriting actions take effect.
allstate Quarterly Investor Information 2005 3rd Earnings Press Release finance7
- Allstate reported a net loss of $1.55 billion for Q3 2005 due to $3.06 billion in after-tax catastrophe losses from hurricanes Katrina, Rita, Dennis, and Ophelia. Excluding catastrophes, underlying performance remained strong.
- Consolidated revenues increased $500 million to $8.94 billion for Q3 2005. Property-Liability premiums grew 2.9% but the combined ratio was 149.6% due to catastrophes. Allstate Financial operating income rose 3.3% to $156 million.
- Allstate updated 2005 annual operating income guidance to $2.35-2.50 per share due to Q3 catastrophe losses
American Express Company is a global provider of travel, financial, and network services. It was founded in 1850 and offers charge and credit cards, traveler's checks, financial planning, brokerage services, insurance, and investment products. As the world's largest travel agency, it offers travel services to individuals and corporations globally. It also provides banking services outside the US. In 1998, American Express continued growing its network services by adding new bank partners, expanded its financial services presence, and grew its international operations despite economic difficulties in some markets.
Ken Lewis, Chairman, President and CEO of Bank of America, presented at the Citigroup Financial Services Conference on January 31, 2007. The presentation highlighted opportunities for growth at Bank of America and summarized key financial metrics for 2006, including 10% revenue growth and 16% growth in net income compared to the previous year. Lewis also outlined the company's short-term outlook and strategies to continue achieving attractive earnings growth in a challenging environment.
The 2010 annual report for Northwestern Mutual summarizes the company's strong financial performance in 2010. Some key points include:
- Total surplus grew $3.4 billion to $17.6 billion and policyowner dividends approved for 2011 were nearly $4.9 billion.
- Total revenue was $23.1 billion and total assets were $180 billion, increases of 8% and 8% respectively from 2009.
- Northwestern Mutual maintained the best possible financial strength ratings from the four major rating agencies.
The report highlights how the company continued to deliver superior financial value to policyholders while keeping a strong focus on helping customers plan for long-term financial security even during a time of economic uncertainty.
This document is the 2009 annual report for Northwestern Mutual. It summarizes the company's financial results for 2009, highlighting that despite volatility in financial markets, Northwestern Mutual paid over $4.7 billion in policyholder dividends, an increase of 4% from 2008. The report also features interviews with several policyholders who felt financially secure during the economic downturn thanks to their policies and relationships with Northwestern Mutual financial representatives.
Capital Product Partners Fourth Quarter 2008 Earningsearningsreport
Capital Product Partners L.P. reported strong fourth quarter 2008 results with net income of $14.3 million and operating surplus of $17.4 million. They announced a non-recurring exceptional cash distribution of $1.05 per unit, returning profit sharing revenues earned in 2008. Despite a weak shipping market outlook, the company has long-term contracts with reputable counterparties and adequate financial reserves to weather uncertain market conditions.
The document provides an overview of financial statement analysis. It discusses the primary types of financial statements, including the balance sheet and income statement. It then analyzes the balance sheet and income statement of Basket Wonders, a sample company, to calculate and examine different types of ratios including liquidity, leverage, activity, and profitability ratios. These ratios are used to evaluate the financial performance and position of Basket Wonders compared to industry averages.
- Ball Corporation provides non-GAAP financial measures such as EBITDA and EBIT to evaluate pre-tax cash flows. For the 12 months ended December 31, 2008, EBITDA was $932.9 million and EBIT was $635.5 million.
- Ball management uses interest coverage and net debt to EBITDA ratios to monitor credit quality. Net interest for the period was $137.7 million.
- Free cash flow is used internally to evaluate operating results, plan stock buybacks, evaluate strategic investments, and evaluate debt capacity. Free cash flow in 2008 was approximately $321 million.
Black & Decker reported second quarter 2007 earnings of $1.75 per share, meeting expectations. Sales were flat at $1.7 billion compared to the previous year. Free cash flow for the first half of 2007 was $300 million, an increase of $120 million over the prior year. The company expects challenges in the US housing market and commodity inflation to continue impacting earnings comparisons and forecasts third quarter EPS of $1.40-$1.45.
Black & Decker reported first quarter 2007 earnings of $1.61 per diluted share, up from $1.45 per diluted share in the first quarter of 2006. Sales increased 3% to a record $1.6 billion due to acquisitions and foreign currency translation. Free cash flow also increased to a record $137 million for the quarter, up more than $115 million from the prior year. The company modestly increased its full-year earnings per share guidance to $6.35 to $6.60 per share and expects roughly flat sales and earnings per share of $1.70 to $1.75 in the second quarter.
This document provides an overview of Xcel Energy from their presentation at the Edison Electric Institute Financial Conference in October 2003. Key points include Xcel achieving several accomplishments in 2003 including settling with NRG creditors, maintaining investment grade ratings, and refinancing debt. Projections for 2004 include earnings of $1.15-1.25 per share assuming NRG emerges from bankruptcy. The presentation outlines Xcel's objectives, investments, regulatory strategy, and earnings drivers to emphasize the company as a low-risk, integrated utility with a total return of 7-8%.
Raytheon reported strong financial results for the fourth quarter and full year 2006. Quarterly sales increased 12% to $5.7 billion due to growth at Integrated Defense Systems, Missile Systems, and Network Centric Systems. Earnings per share from continuing operations increased 27% to $0.65 for the quarter. For the full year, sales increased 7% to $20.3 billion and earnings per share from continuing operations increased 37% to $2.46. Raytheon also provided guidance for 2007, forecasting earnings per share from continuing operations between $2.85 to $3.00 on sales between $21.4 to $21.9 billion.
The workshop will provide examples and strategies for the design of the experiential online education. Participants will explore what makes a great education experience and define the attributes that contribute to a great online learning experience.
The document summarizes Barrick Gold Corporation's presentation at the 2007 Merrill Lynch Annual Mining Conference in Toronto. It highlights Barrick's status as the world's largest unhedged gold producer, with gold reserves of over 33 million ounces. The presentation outlines Barrick's operational and financial performance in 2007, provides production and cost guidance for 2007, and discusses highlights and updates for major mining sites around the world, including Nevada, Yanacocha, Australia/New Zealand, Batu Hijau, Ghana, and development projects.
This presentation discusses Newmont Mining Corporation capitalizing on the gold bull market. Newmont is the only major US gold company and has gold assets in Nevada, Peru, Indonesia, Australia, and Ghana. In 2006, Newmont had equity gold sales of 5.9 million ounces. Newmont provides leverage to rising gold prices with no gold hedges. Guidance is given for 2007 production and costs at each region. Costs applicable to sales are expected to increase approximately 25% in 2007 due to increases in factors such as labor, fuel and consumables.
120 Days and Nights of STAGGERING + STAMMERINGMark Ingham
This document appears to be about a period of time from 2008 to 2014 where the author experienced stammering and staggering for 120 days and nights. It marks both an end and another beginning for the author during that timeframe in London, UK.
Restructuring Completed At American Capital And European Capital June 28 2010Monster12
The document summarizes a debt restructuring completed by American Capital and European Capital in June 2010. It involved paying down $1 billion in cash, and issuing $1.3 billion in new secured debt maturing in December 2013. The restructuring reduced total debt from $4.026 billion to $2.996 billion, and increased shareholders' equity from $2.526 billion to $2.814 billion. This improved the debt to equity ratio from 1.6x to 1.1x. The new debt structure provides flexibility to make new investments with proceeds from asset sales and capital raisings.
In the quarter ended December 31, 2002:
- Revenues increased 6% to $7.5 billion while net income decreased 41% to $256 million compared to the previous year.
- Earnings per share were $0.13, down from $0.21 in the prior year quarter, due to one-time charges including a $83 million write-off related to United Airlines.
- Excluding one-time items, earnings per share increased 13% to $0.17 from $0.15 in the prior year.
This document is a letter from the leadership of General Motors to its stockholders. It summarizes GM's financial performance in 2003, noting record revenue but unmet profit expectations. It identifies challenges like healthcare costs and foreign competition. However, it emphasizes GM's progress in areas like new vehicle development, global coordination, and brand differentiation. It outlines an optimistic outlook based on GM's strengths, and promises an onslaught of exciting new products to strengthen its position.
allstate Quarterly Investor Information 2002 4th finance7
Allstate reported their fourth quarter and full year 2002 results. Some key highlights:
- Q4 2002 net income was $447 million, up 69% from Q4 2001. Full year 2002 net income was $1.13 billion, down slightly from 2001.
- Q4 2002 operating income was $618 million, up 100% from Q4 2001. Full year 2002 operating income was $2.08 billion, up from $1.49 billion in 2001.
- Results were driven by increased premiums earned, improved loss frequencies, and increased investment income, partly offset by higher claims severities and catastrophe losses.
- For 2003, Allstate expects operating income per share of $3.20-$3
This document is a letter from GM's CEO to stockholders summarizing GM's performance in 2007. It discusses GM's continued efforts to transform the company through cost reductions, new vehicle launches, and addressing legacy costs. While adjusted earnings improved, GM reported a large loss due to a tax valuation allowance. The letter also outlines GM's strategies for growth in emerging markets and advanced propulsion technologies.
allstate Quarterly Investor Information 2001 4thfinance7
- Allstate reported lower operating income for Q4 2001 and full year 2001 compared to the same periods in 2000, due to increased loss costs, restructuring expenses, and lower investment income, partly offset by higher premiums.
- For Q4 2001, operating income was $309 million compared to $584 million in Q4 2000. For full year 2001, operating income was $1.49 billion compared to $2 billion in 2000.
- Allstate provided guidance for 2002 operating income per share of $2.50-$2.70, expecting improvement in results later in 2002 as pricing and underwriting actions take effect.
allstate Quarterly Investor Information 2005 3rd Earnings Press Release finance7
- Allstate reported a net loss of $1.55 billion for Q3 2005 due to $3.06 billion in after-tax catastrophe losses from hurricanes Katrina, Rita, Dennis, and Ophelia. Excluding catastrophes, underlying performance remained strong.
- Consolidated revenues increased $500 million to $8.94 billion for Q3 2005. Property-Liability premiums grew 2.9% but the combined ratio was 149.6% due to catastrophes. Allstate Financial operating income rose 3.3% to $156 million.
- Allstate updated 2005 annual operating income guidance to $2.35-2.50 per share due to Q3 catastrophe losses
American Express Company is a global provider of travel, financial, and network services. It was founded in 1850 and offers charge and credit cards, traveler's checks, financial planning, brokerage services, insurance, and investment products. As the world's largest travel agency, it offers travel services to individuals and corporations globally. It also provides banking services outside the US. In 1998, American Express continued growing its network services by adding new bank partners, expanded its financial services presence, and grew its international operations despite economic difficulties in some markets.
Ken Lewis, Chairman, President and CEO of Bank of America, presented at the Citigroup Financial Services Conference on January 31, 2007. The presentation highlighted opportunities for growth at Bank of America and summarized key financial metrics for 2006, including 10% revenue growth and 16% growth in net income compared to the previous year. Lewis also outlined the company's short-term outlook and strategies to continue achieving attractive earnings growth in a challenging environment.
The 2010 annual report for Northwestern Mutual summarizes the company's strong financial performance in 2010. Some key points include:
- Total surplus grew $3.4 billion to $17.6 billion and policyowner dividends approved for 2011 were nearly $4.9 billion.
- Total revenue was $23.1 billion and total assets were $180 billion, increases of 8% and 8% respectively from 2009.
- Northwestern Mutual maintained the best possible financial strength ratings from the four major rating agencies.
The report highlights how the company continued to deliver superior financial value to policyholders while keeping a strong focus on helping customers plan for long-term financial security even during a time of economic uncertainty.
This document is the 2009 annual report for Northwestern Mutual. It summarizes the company's financial results for 2009, highlighting that despite volatility in financial markets, Northwestern Mutual paid over $4.7 billion in policyholder dividends, an increase of 4% from 2008. The report also features interviews with several policyholders who felt financially secure during the economic downturn thanks to their policies and relationships with Northwestern Mutual financial representatives.
Capital Product Partners Fourth Quarter 2008 Earningsearningsreport
Capital Product Partners L.P. reported strong fourth quarter 2008 results with net income of $14.3 million and operating surplus of $17.4 million. They announced a non-recurring exceptional cash distribution of $1.05 per unit, returning profit sharing revenues earned in 2008. Despite a weak shipping market outlook, the company has long-term contracts with reputable counterparties and adequate financial reserves to weather uncertain market conditions.
The document provides an overview of financial statement analysis. It discusses the primary types of financial statements, including the balance sheet and income statement. It then analyzes the balance sheet and income statement of Basket Wonders, a sample company, to calculate and examine different types of ratios including liquidity, leverage, activity, and profitability ratios. These ratios are used to evaluate the financial performance and position of Basket Wonders compared to industry averages.
- Ball Corporation provides non-GAAP financial measures such as EBITDA and EBIT to evaluate pre-tax cash flows. For the 12 months ended December 31, 2008, EBITDA was $932.9 million and EBIT was $635.5 million.
- Ball management uses interest coverage and net debt to EBITDA ratios to monitor credit quality. Net interest for the period was $137.7 million.
- Free cash flow is used internally to evaluate operating results, plan stock buybacks, evaluate strategic investments, and evaluate debt capacity. Free cash flow in 2008 was approximately $321 million.
Black & Decker reported second quarter 2007 earnings of $1.75 per share, meeting expectations. Sales were flat at $1.7 billion compared to the previous year. Free cash flow for the first half of 2007 was $300 million, an increase of $120 million over the prior year. The company expects challenges in the US housing market and commodity inflation to continue impacting earnings comparisons and forecasts third quarter EPS of $1.40-$1.45.
Black & Decker reported first quarter 2007 earnings of $1.61 per diluted share, up from $1.45 per diluted share in the first quarter of 2006. Sales increased 3% to a record $1.6 billion due to acquisitions and foreign currency translation. Free cash flow also increased to a record $137 million for the quarter, up more than $115 million from the prior year. The company modestly increased its full-year earnings per share guidance to $6.35 to $6.60 per share and expects roughly flat sales and earnings per share of $1.70 to $1.75 in the second quarter.
This document provides an overview of Xcel Energy from their presentation at the Edison Electric Institute Financial Conference in October 2003. Key points include Xcel achieving several accomplishments in 2003 including settling with NRG creditors, maintaining investment grade ratings, and refinancing debt. Projections for 2004 include earnings of $1.15-1.25 per share assuming NRG emerges from bankruptcy. The presentation outlines Xcel's objectives, investments, regulatory strategy, and earnings drivers to emphasize the company as a low-risk, integrated utility with a total return of 7-8%.
Raytheon reported strong financial results for the fourth quarter and full year 2006. Quarterly sales increased 12% to $5.7 billion due to growth at Integrated Defense Systems, Missile Systems, and Network Centric Systems. Earnings per share from continuing operations increased 27% to $0.65 for the quarter. For the full year, sales increased 7% to $20.3 billion and earnings per share from continuing operations increased 37% to $2.46. Raytheon also provided guidance for 2007, forecasting earnings per share from continuing operations between $2.85 to $3.00 on sales between $21.4 to $21.9 billion.
The workshop will provide examples and strategies for the design of the experiential online education. Participants will explore what makes a great education experience and define the attributes that contribute to a great online learning experience.
The document summarizes Barrick Gold Corporation's presentation at the 2007 Merrill Lynch Annual Mining Conference in Toronto. It highlights Barrick's status as the world's largest unhedged gold producer, with gold reserves of over 33 million ounces. The presentation outlines Barrick's operational and financial performance in 2007, provides production and cost guidance for 2007, and discusses highlights and updates for major mining sites around the world, including Nevada, Yanacocha, Australia/New Zealand, Batu Hijau, Ghana, and development projects.
This presentation discusses Newmont Mining Corporation capitalizing on the gold bull market. Newmont is the only major US gold company and has gold assets in Nevada, Peru, Indonesia, Australia, and Ghana. In 2006, Newmont had equity gold sales of 5.9 million ounces. Newmont provides leverage to rising gold prices with no gold hedges. Guidance is given for 2007 production and costs at each region. Costs applicable to sales are expected to increase approximately 25% in 2007 due to increases in factors such as labor, fuel and consumables.
120 Days and Nights of STAGGERING + STAMMERINGMark Ingham
This document appears to be about a period of time from 2008 to 2014 where the author experienced stammering and staggering for 120 days and nights. It marks both an end and another beginning for the author during that timeframe in London, UK.
Haiku Deck is a presentation platform that allows users to create Haiku-style slideshows. The document encourages the reader to get started creating their own Haiku Deck presentation on SlideShare by providing a link to do so. It pitches the idea of making Haiku Deck presentations without providing many details about the platform itself.
This document is the 2007 annual report of W. R. Berkley Corporation, a commercial property and casualty insurance provider. The report summarizes the company's strong financial performance in 2007, with total revenues increasing 3% to $5.6 billion, net income reaching a new high of $3.78 per share and return on equity exceeding 22%. It provides an overview of the company's five business segments and decentralized operating structure. The report also highlights Berkley's long-term strategies of accountability, developing talent internally, proactively managing risk exposures, and maintaining a strong balance sheet.
The insurance industry has evolved over centuries from early forms of risk-sharing in ancient times to the modern insurance model that emerged in the late 19th century. The document outlines three eras of the insurance industry: Insurance 1.0 referred to analog insurance companies of the 20th century; Insurance 2.0 saw insurers adopt digital tools and the internet but still operate similar business models; Insurance 3.0 calls for insurers to fully embrace digital technologies and transform their business models to focus on customer needs in today's digital world. The industry now faces pressures to change as customer expectations have risen and new competitors have entered the market.
raytheonSmith Barney Citigroup 18th Annual Global Industrial Manufacturing Co...finance12
This document contains the presentation slides from Raytheon Company CFO Ed Pliner at the 18th Annual Global Industrial Manufacturing Conference on March 8, 2005. The presentation provides an overview of Raytheon, including that it is a $20 billion defense technology business leader. It outlines Raytheon's strategy of growing in core defense markets and leveraging domain expertise across sectors. Financial information is presented showing strong order growth, sales increases, debt reduction, and 2005 guidance forecasts.
The document discusses The Shaw Group's 2002 annual report. It describes how in 2002 Shaw significantly expanded its capabilities through the acquisition of The IT Group, adding environmental, infrastructure, and homeland security services. This made Shaw a stronger competitor able to handle more issues for more customers. The acquisition helped drive record financial results in 2002, with revenues increasing 106% to over $3.2 billion and net income up 61% to $98.4 million. Looking ahead, Shaw aims to continue growing in areas like power sector maintenance and environmental markets as well as expanding internationally, especially in China.
The annual report summarizes Corning's financial performance in 2002, a challenging year due to the downturn in the telecommunications industry. Corning reported a net loss of $1.3 billion on sales of $3.2 billion, down significantly from 2001. In response, Corning restructured operations, cutting costs and jobs to preserve its financial position. It aims to return to profitability in 2003 by focusing on growing its display glass, environmental, and semiconductor businesses within Corning Technologies. While telecommunications remains weak, Corning maintains its leadership in optical fiber and intends to benefit when the market rebounds.
allstate Quarterly Investor Information 2002 1stfinance7
The Allstate Corporation reported financial results for the first quarter of 2002, with net income of $426 million, down from $500 million in the same period the previous year. Operating income was $488 million compared to $552 million in 2001. While revenues grew slightly by 2.3%, increased loss costs and decreased investment income contributed to the decline in profits. The company remains on track to meet its full-year earnings guidance despite challenges from higher claims in areas like Texas and ongoing cost pressures.
VF Corporation reported financial results for 2000 that were mixed compared to 1999. Net sales reached a record $5.7 billion but operating income and net income declined from the previous year. Earnings per share were reduced by restructuring charges and a change in accounting policy. Throughout 2000, VF took actions to strengthen its brands and position the company for improved financial performance in 2001, including acquiring new brands, exiting unprofitable businesses, consolidating operations, and continuing its share repurchase program.
Caterpillar's 2003 annual report outlines steps to building a great company. It discusses (1) inventing revolutionary products like tracked machines that became Caterpillar tractors; (2) choosing distribution partners wisely, like the network of over 200 independent and family-owned dealers worldwide; and (3) continually innovating and anticipating customer needs through new technologies like ACERT engines and e-business solutions for dealers.
The Timken Company maintained profitability in 1999 despite weaknesses in many markets. The company achieved its third highest sales ever and reduced inventory days for the third consecutive year. Looking ahead, Timken is transforming its organization into a more global business with new leadership and a broader product portfolio to fuel growth and take advantage of improving business conditions in 2000.
Constellation Brands had strong financial performance in fiscal year 2003. Net sales increased 5% to $2.7 billion and net income grew 22% to $192 million. Earnings per share also increased 16% to $2.07. The company has a broad portfolio of over 200 wine, beer, and spirits brands that makes it unique among global beverage alcohol companies. Its acquisition of BRL Hardy in 2003 is expected to further accelerate sales and earnings growth going forward.
The document is W.R. Berkley Corporation's 2003 Annual Report. It summarizes the company's strong financial performance in 2003, including record net income of $337 million, return on equity of 25.3%, and growth in net premiums written and cash flow from operations. It highlights the company's decentralized business model, focus on risk-adjusted returns, and people-oriented strategy of developing talent internally. Financial data tables show key metrics from 1999-2003.
The document is P&G's 2000 annual report which summarizes the company's financial and operating performance for the fiscal year.
1) Net sales grew 5% to $39.9 billion while net earnings fell 6% to $3.5 billion due to higher costs from organizational changes and new investments. Core earnings excluding restructuring costs grew 2% to a record $4.2 billion.
2) The CEO acknowledges the year's challenges but expresses confidence that by focusing on big brands, innovation, customer partnerships, and cost control, P&G can restore balanced growth in sales and profits.
3) Looking forward, the new organizational structure aims to leverage P&G's strengths in understanding consumer needs
The document provides an overview of Bank of America's Global Corporate & Investment Banking division, including:
1) It combines the Global Business & Financial Services and Global Capital Markets & Investment Banking businesses.
2) For the first half of 2005, the combined business generated $10.2 billion in revenue.
3) The division aims to better serve clients through an integrated operating model and cross-selling opportunities across BofA.
Symantec's 2003 annual report summarizes the company's strong financial performance in fiscal year 2003. Revenues grew 31% to $1.4 billion, operating income grew to $342 million, and net income grew to $248 million. The company saw growth across all regions and segments, with the consumer segment growing 52% and accounting for 41% of revenues. Symantec continued investing in its business through acquisitions and investments in sales, marketing, and product development to maintain its leadership position in the internet security market.
- 2008 was a difficult year for Ameriprise Financial due to turmoil in the equity and credit markets that impacted client assets and fee revenue. The company reported a net loss of $38 million compared to a net income of $814 million in 2007.
- Despite the challenges, Ameriprise Financial maintained a solid balance sheet with $6.2 billion in cash and cash equivalents and $700 million in excess capital. The company continued supporting its advisors and clients through market volatility.
- In response to a money market fund breaking the dollar, Ameriprise Financial advanced affected clients $400 million to meet immediate cash needs and committed to mitigate losses in the impaired fund, demonstrating its dedication to clients.
- Net revenues for Ameriprise Financial declined to $6.97 billion in 2008 from $8.56 billion in 2007 due to lower fee revenue from declining client assets and reduced client activity in the weak market. The company reported a net loss of $38 million for 2008 compared to net income of $814 million in 2007.
- Despite the difficult market conditions, Ameriprise Financial's business remains sound due to its conservative risk management approach and strong balance sheet fundamentals including $34 billion in diversified assets, $6 billion in cash, and $0.7 billion in excess capital.
- The company continues to execute on its strategy focused on financial planning, serving clients through its network of over 12,000
- Net revenues for Ameriprise Financial declined to $6.97 billion in 2008 from $8.56 billion in 2007 due to declining markets and reduced client activity. The company reported a net loss of $38 million for 2008 compared to net income of $814 million in 2007.
- Despite the difficult market conditions, Ameriprise Financial's business remains sound due to its conservative risk management approach and strong balance sheet fundamentals including $34 billion in diversified assets, $6 billion in cash, and $700 million in excess capital.
- The company continues to execute its strategy focused on financial planning, serving clients through over 12,000 advisors, and growing while protecting assets over the long term.
- Net revenues for Ameriprise Financial declined to $6.97 billion in 2008 from $8.56 billion in 2007 due to declining markets and reduced client activity. The company reported a net loss of $38 million for 2008 compared to net income of $814 million in 2007.
- Despite significant market challenges, Ameriprise Financial's business remains strong due to its client-focused financial planning model, diversified business lines, and solid balance sheet fundamentals including $34 billion in diversified assets and $6 billion in cash.
- The company continues executing its long-term strategy and pursuing growth opportunities, while also reducing costs, with the goal of emerging from the economic downturn well-positioned for the
- Morgan Stanley reported first quarter net income of $905 million, a 7% increase from the same period the previous year. Diluted earnings per share were $0.82.
- Net revenues for the quarter were $5.5 billion, a 4% increase from the prior year period. The annualized return on average common equity was 16%.
- Institutional Securities net income increased 17% to $618 million compared to the first quarter of 2002, driven by record fixed income revenues.
This document provides an investor update from GMAC's CFO in June 2006. It discusses GMAC's business lines and financial performance. It also summarizes GM's plan to sell a 51% controlling stake in GMAC to a consortium led by Cerberus Capital Management. The sale aims to strengthen GMAC's capital base, improve its credit ratings and liquidity, while preserving its relationship with GM. It is expected to benefit both GMAC and GM over the long term.
Morgan Stanley Dean Witter reported record first quarter net income of $1.5 billion, up 49% from the previous year, with record net revenues of $7.4 billion. Earnings per share were up 52% to $1.34. The Securities division achieved net income of $1.24 billion, up 54%, driven by record results in equities trading, investment banking, and asset management. Asset Management reported a 48% increase in net income to $158 million, with record assets under management of $455 billion. Credit Services net income was up 15% to $142 million, with record transaction volumes and consumer loan balances.
1. Constellation Energy's 2003 annual report summarizes the company's performance and strategic vision.
2. The company grew significantly in 2003, with revenues reaching almost $10 billion and total shareholder return of 45%.
3. Constellation Energy serves over 8,000 megawatts of peak load in wholesale energy markets across North America and has expanded its customer base.
Western Digital's revenue in Q1 FY2005 was $824 million. 59% of revenue came from OEM customers, 35% from distributors, and 6% from retailers. Geographically, 40% of revenue was from the Americas, 30% from Europe, and 30% from Asia. Worldwide headcount increased to 20,760 employees. Total inventory was $144 million with inventory turns of 20 times.
Western Digital reported revenue of $955 million for Q2 FY2005, up 16% from Q2 FY2004. 58% of revenue came from OEM customers and 35% from distributors. Geographically, 38% of revenue was from the Americas, 32% from Europe, and 30% from Asia. Hard drive unit shipments increased by 16% to 16.2 million units while worldwide headcount grew slightly to 21,565. Total inventory fell to $118 million while inventory turns improved to 27 times.
Western Digital reported Q3 FY2005 revenue of $920 million, with 56% from OEM customers, 37% from distributors, and 7% from retail. Revenue was highest in Asia at 34% of the total, followed by Americas at 36% and Europe at 30%. The number of hard drive units shipped was 15.3 million, with worldwide headcount growing to 22,426. Inventory levels increased to $136 million, with inventory turns at 22.
Western Digital reported Q4 FY2005 revenue of $940 million. 57% of revenue came from OEM customers, 38% from distributors, and 5% from retail. 37% of revenue was from the Americas, 25% from Europe, and 37% from Asia. 48% of revenue came from the top 10 largest customers. Hard drive unit shipments reached 15.8 million for the quarter. Worldwide headcount increased to 23,161 employees. Inventory levels increased to $153 million with inventory turns at 20 times.
Western Digital's revenue in Q1 FY2006 was $1.01 billion, up from $824 million in Q1 FY2005. 55% of revenue came from OEM customers, 39% from distributors, and 6% from retail. Geographically, 36% of revenue was from the Americas, 29% from Europe, and 35% from Asia. Worldwide headcount increased to 24,211 from 20,760 in Q1 FY2005. Total inventory, net increased to $173 million from $144 million in Q1 FY2005.
Western Digital reported revenue of $1.117 billion for Q2 FY2006, up 11% from the same period last year. Approximately 56% of revenue came from OEM customers and 39% from distributors. Geographically, revenue declined in the Americas to 32% while rising in Europe to 34% and remaining flat in Asia at 34%. Inventory levels increased to $168 million but inventory turns improved to 21 turns.
Western Digital Corporation's Q3 FY2006 financial results show that hard drive unit shipments increased to 18.8 million, revenue was $1.129 billion with an average selling price of $60 per unit, and gross margin was 19.3%. Revenue was split 53% from OEMs, 40% from distributors, and 7% from retail, with the largest geographic regions being the Americas at 39%, Europe at 27%, and Asia at 34%. Cash flow from operations was $119 million.
Western Digital Corporation reported its financial results for the fourth quarter of fiscal year 2006, with total revenue of $1.086 billion. The average selling price of hard drives declined to $56 per unit from $60 in the previous quarter. Gross margin was 18.8% and cash flow from operations was $126 million. Worldwide headcount increased to 24,750 employees. Total inventory increased to $205 million while inventory turns declined to 17 turns.
Western Digital reported higher unit shipments and revenue in Q1 FY2007 compared to the same quarter last year. Revenue increased by $254 million to $1.264 billion due to a 22% increase in hard drive unit shipments. Gross margin declined slightly to 17.3% and revenue from OEM customers decreased to 52% of total revenue. Cash flow from operations was $128 million and inventory levels increased by $11 million from the previous quarter to $216 million.
Western Digital reported increased revenue and unit shipments in Q2 FY2007 compared to the same period last year. Revenue grew 28% to $1.428 billion while unit shipments increased 36% to 24.5 million units. Gross margin improved slightly to 17.9% and worldwide headcount grew 9% to over 27,000 employees. Inventories also increased due to higher finished goods and work in process levels.
Western Digital reported its Q3 FY2007 financial results. While unit shipments remained steady at 24.5 million, revenue declined slightly to $1.41 billion. Gross margins decreased to 15.8% due to pricing pressures. Cash flow from operations was $164 million. Inventory levels increased but inventory turns improved to 20 times.
Western Digital Corporation's Q4 FY2007 investor information summary shows that the company's hard drive unit shipments increased slightly compared to Q3 FY2007, but revenue and average selling price declined. Gross margin also decreased from the prior quarter. The company's largest customers - representing 48% of revenue - continued to be OEMs, distributors, and retailers. Cash flow from operations and inventory levels increased from Q3 FY2007.
Western Digital reported higher revenue and unit shipments in Q1 FY2008 compared to the same period last year. Revenue increased 40% to $1.77 billion driven by a 7% increase in average selling price and 29% more hard drive units shipped. Gross margin improved to 18.3% from 17.3% a year ago. Total inventory increased significantly to support future demand, leading to lower inventory turns. Capital expenditures also increased substantially to $163 million to expand production capacity.
Western Digital reported revenue of $2.2 billion for Q2 FY2008, a 25% increase from the previous quarter. Gross margins improved to 23.3% as average selling prices increased to $61 per hard drive unit. Inventory levels remained steady at $459 million while inventory turns improved to 15 times. Worldwide headcount grew modestly to 42,534 employees.
Western Digital Corporation provides a quarterly investor information summary including key metrics such as hard drive unit shipments, revenue, average selling prices, gross margins, revenue by channel and geography, cash flow from operations, inventory levels, and number of employees. For the third quarter of fiscal year 2008, the company shipped 34.5 million hard drive units, generated $2.11 billion in revenue, and had a gross margin of 22.6%.
Western Digital reported revenue of $1.993 billion in Q4 FY2008, down from $2.111 billion in the previous quarter. Their average hard drive selling price was $56 and gross margin was 21.3%. Over half of revenue came from OEM customers, while Asia accounted for 46% of geographic revenue. Total inventory was $456 million with inventory turns of 14 times.
Western Digital reported revenue of $2.1 billion for Q1 FY2009, up slightly from the previous year. Average selling prices for hard drives declined to $53 per unit from $56 in the previous quarter. Gross margins decreased to 20.1% as production costs increased. Revenue from Asia grew and now makes up 48% of total revenue, while the Americas saw a decline to 23% of revenue. The company's workforce grew to 51,409 employees worldwide.
Western Digital reported Q2 FY2009 revenue of $1.823 billion, down 15% from the previous year. Revenue from OEM customers was 57% of total, down from 48% the previous year. The Asia region accounted for 48% of revenue, up from 36% the previous year. Gross margin declined to 15.9% from 23.3% the previous year. Cash flow from operations was $300 million and days sales outstanding was 46 days.
Western Digital Corporation is a leading manufacturer of hard disk drives. In fiscal year 1995, the company achieved record revenues and earnings despite intense competition. It gained market share in hard drives, improved its financial position, and received an ISO 9001 quality certification. Looking forward, Western Digital is expanding its hard drive production capacity and entering new high-performance, high-capacity hard drive markets. It aims to take advantage of growth opportunities through investment in research and development.
Western Digital Corporation is a leading manufacturer of hard drives. In 1996, the company reported record revenues and unit shipments, gained market share, and introduced new enterprise hard drives. Despite significant investments, Western Digital remains debt-free with strong cash flow and financial position. The company expects continued growth in the hard drive market and is well-positioned with efficient operations and quality products to capitalize on opportunities.
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
The Universal Account Number (UAN) by EPFO centralizes multiple PF accounts, simplifying management for Indian employees. It streamlines PF transfers, withdrawals, and KYC updates, providing transparency and reducing employer dependency. Despite challenges like digital literacy and internet access, UAN is vital for financial empowerment and efficient provident fund management in today's digital age.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Unlock Your Potential with NCVT MIS.pptxcosmo-soil
The NCVT MIS Certificate, issued by the National Council for Vocational Training (NCVT), is a crucial credential for skill development in India. Recognized nationwide, it verifies vocational training across diverse trades, enhancing employment prospects, standardizing training quality, and promoting self-employment. This certification is integral to India's growing labor force, fostering skill development and economic growth.
2. TAB LE O F CO N TEN T S
4 Financial Highlights
5 Chairman’s Letter
12 Investments
15 Operating Segments
25 Financial Data
26 Management’s Discussion
and Analysis
34 Financial Statements
55 Operating Units
60 Officers and Directors
Cover: “Main Event” by Richard Luce
3. The Board of Directors and Senior Management of the Company have primary responsibility to
ensure the long-term success of the enterprise in varying economic climates.
Relative Stock Price Performance
®
2,000%
2,000%
W. R. Berkley Corporation vs. S&P 500 Percent Change
Past 20 Years 1,877%
1,500%
1,500%
1,000%
1,000%
500%
500%
459%
0%
0%
2/25/83 5/16/85 8/6/87 10/26/89 1/16/92 4/7/94 6/27/96 9/17/98 12/7/00 2/27/03
The Numbers Behind a Share of W. R. Berkley Corporation Stock
Each share of our common stock represents, in effect, a piece of the Company’s assets and
revenues. Here are some of the key numbers underlying each share of stock you own.
Dollars per share: As of December 31, 2002
• Investments $84.44
• Total assets $127.33
• Reserves for losses and loss expenses $58.14
• Stockholders’ equity $24.18
Dollars per share: For the year ended December 31, 2002
• Net premiums written $51.22
• Total revenues $48.49
• Income before income taxes $4.90
• Net income $3.31
4. W. R. Berkley Corporation:
We have the people, financial resources
and strategies to capitalize on opportunity
and deliver profitable growth.
Corporate Profile Stockholders’ Equity
Dollars in Millions
$1,335
W.R. Berkley Corporation is a property casualty insurance holding
company founded in 1967. We have grown rapidly and have $932
$861
consistently gained market share, with a clear focus on profitability, $681
$592
by adhering to an entrepreneurial philosophy that places decision-
making and accountability as close to the customer as possible. Each
of the 24 operating units in the Berkley group participates in a niche
1998 1999 2000 2001 2002
market requiring specialized knowledge about a product or territory.
Strategic Overview Net Premiums Written
Dollars in Billions
Berkley’s strategy is to build value for shareholders by deploying $2.7
capital in segments of the property casualty insurance business $1.9
$1.5
which offer the best opportunities and in which we can leverage our $1.3 $1.4
flexibility, responsiveness, expertise and strong relationships to
competitive advantage.
1998 1999 2000 2001 2002
Financial Highlights
Berkley enjoyed an excellent year in 2002. Results were driven by Investments
Market Value – Dollars in Billions
the effective execution of our strategy in a strong insurance market: $4.7
• Net premiums written increased 46% to a new high of $3.6
$3.2 $3.0 $3.1
$2.7 billion.
• Net income was a record $3.31 per share.
• Stockholders’ equity per share advanced 29% to $24.18.
• Return on stockholders’ equity was 18.5%.
1998 1999 2000 2001 2002
2
5. Premier Insurance Provider
Berkley at a Glance
SPECIALTY SEGMENT
The specialty segment underwrites complex and sophisticated risks, providing
coverage primarily to the excess and surplus lines, professional liability and com-
mercial transportation markets. 2002 Results: Total revenues were up 75% to
$773 million. Pre-tax operating income increased nearly 300% to $119 million.
ALTERNATIVE MARKETS SEGMENT
The alternative markets segment develops, insures and administers self-insurance
programs and other alternative risk transfer mechanisms for corporations, government
and non-profit entities, and other organizations, with a primary focus on workers’
compensation business. 2002 Results: Total revenues were up 55% to $362 million.
Pre-tax operating income increased 83% to $63 million.
REINSURANCE SEGMENT
The reinsurance segment provides property, casualty and surety reinsurance on both
a facultative and treaty basis. In addition, the Company has quota share reinsurance
agreements with several Lloyd’s syndicates. 2002 Results: Total revenues advanced
83% to $514 million. Pre-tax operating income was $32 million, compared with an
operating loss in 2001.
REGIONAL SEGMENT
The regional segment provides commercial lines property casualty coverages
to small and mid-sized businesses and government entities in 32 states.
2002 Results: Total revenues increased 23% to $757 million. Pre-tax operating
income was up 158% to $104 million.
INTERNATIONAL SEGMENT
The international segment has operations in Argentina and the Philippines.
2002 Results: Total revenues were down 24% to $104 million. The segment incurred
a pre-tax operating loss of $2 million, compared with an operating profit in 2001.
3
6. Financial Highlights
(Dollars in thousands, except per share data)
December 31, 2002 2001 2000 1999 1998
FOR THE YEAR ENDED
Total revenues $2,566,084 $1,941,797 $1,781,287 $1,673,668 $1,582,517
Net premiums written 2,710,490 1,858,096 1,506,244 1,427,719 1,346,254
Net investment income 187,875 195,021 210,448 190,316 202,420
Service fees 86,095 75,771 68,049 72,344 70,727
Net income (loss) attributable to common
stockholders 175,045 (91,546) 36,238 (37,060) 46,195
Earnings (loss) per common share:
Basic 3.44 (2.09) .94 (.96) 1.09
Diluted 3.31 (2.09) .93 (.96) 1.06
(1)
Return on common stockholders’ equity 18.5% (11.2%) 6.1% (4.9%) 5.4%
AT YEAR END
Total assets $7,031,323 $5,633,509 $5,022,070 $4,784,791 $4,983,431
(2)
Total investments 4,663,100 3,607,586 3,112,540 2,995,980 3,249,581
Stockholders’ equity 1,335,199 931,595 680,896 591,778 861,281
(3)
Total capitalization 1,896,435 1,500,359 1,249,223 1,184,696 1,463,713
Common shares outstanding (in thousands) 55,223 49,861 38,484 38,426 39,756
Common stockholders’ equity per share 24.18 18.68 17.69 15.40 19.20
(1) Represents net income expressed as a percentage of beginning of year stockholders’ equity, adjusted for stock transactions.
(2) Including trading account receivable from brokers and clearing organizations and trading account securities sold but not yet purchased.
(3) Represents the sum of stockholders’ equity, debt and trust preferred securities.
4 W. R. BERKLEY CORPORATION AND SUBSIDIARIES
7. TO OUR SHAREHOLDERS:
W.
R. Berkley Corporation had a record
year by all accounts. Net income,
total revenues, premiums written
and underwriting profit all reached new highs.
Our excellent results reflect the strategic deci-
sions we have made in recent years to consoli-
date operations and focus on our most profitable
lines of business. We benefited as well from
higher insurance prices and improved terms
and conditions.
At a time of opportunity in the marketplace,
the property casualty insurance industry’s over-
all capacity was constricted by widespread bal-
ance sheet problems. We managed these issues
more effectively than our competitors and, con-
sequently, were able to utilize our capital and
human resources to the fullest. Because of the WILLIAM R. BERKLEY
Chairman of the Board and Chief Executive Officer
positive impact of our strategic decisions, we
were able to take full advantage of the profitable
new business available to us in 2002. Our financial results reflect the Company’s success:
• Pretax income was a record $259 million.
• Net income was a record $175 million, or $3.31 per share.
• Net premiums written from continuing business advanced 62% to a new high of $2.7 billion as a
result of higher premium rates and a modest increase in policy count.
• Return on common stockholders’ equity was 18.5%, exceeding our 15% target.
• Cash flow from operations was $771 million, up from $210 million in 2001.
Our performance was strong across all business areas. All four of our domestic operating segments
contributed to the Company’s growth, delivering sharply higher premium volumes and operating earnings:
• The specialty segment increased its gross premiums written by 54%. Segment pre-tax operating
income nearly quadrupled.
5
8. C H A I R M A N ’ S L E T TER Continued
• The alternative markets segment posted a 106% increase in gross premiums written. Pre-tax operat-
ing income nearly doubled.
• In the reinsurance segment, gross premiums written more than doubled, led by a 144% increase in
gross premiums written for facultative reinsurance. The segment delivered solidly positive operating
earnings versus a loss in 2001.
• The regional segment increased its gross premiums written by 36%. Pre-tax operating income nearly
tripled, and the segment reduced its combined ratio to 91.5%.
Gross Premiums Written The international segment, by far the smallest of our five groups, had a difficult
Dollars in Billions
$3.2 year because of the economic crisis in Argentina. We are optimistic that operating
results in this segment will improve in 2003.
$2.2
$1.7 $1.8
$1.6
Price Increases and Underwriting Results
Insurance market conditions began to improve more than two years ago following an
extended period of aggressive industry price competition and declining rates. We
1998 1999 2000 2001 2002 began to increase rates ahead of many of our competitors, starting with price
increases in our commercial transportation business in the fourth quarter of 2000.
This first opportunity arose when several commercial transportation insurance carriers withdrew from the
business, allowing prices to move quite suddenly to an adequate level.
By 2001, nearly all segments of the property casualty insurance market were showing significant
price strengthening. Consequently, during that year we were able to effect substantial rate increases in
our specialty areas and somewhat more modest increases in our regional business. During 2002, as the
market continued to harden, we raised rates by even greater amounts. In addition to charging higher
rates, we have been able to modify policy terms and conditions to limit and better define our exposures,
thereby reducing our expected loss costs.
Prior to 2001, insurance prices had been falling by 6% to 7% a year for nearly a decade. Even with
recent price increases, it is likely the market will continue to strengthen during 2003 and into 2004.
Prices are only now nearing the levels of the late 1980s.
In many insurance lines, prices are still not high enough to generate adequate industry profit
margins. In fact, the industry lost money on underwriting in 2002, as reflected in an industry combined
ratio estimated at 106%. Any ratio above 100% represents an underwriting loss. Although underwriting
losses are typically offset by investment profits, current financial market conditions have changed the
economics of the industry considerably. Record low interest rates and falling equity prices have cut into
the industry’s investment returns, forcing many insurers to price risk more appropriately or face the
possibility of going out of business. A recent study suggested that the industry’s combined ratio must
6 W. R. BERKLEY CORPORATION AND SUBSIDIARIES
9. drop below 95% before overall industry profitability, including investment profits, reaches a minimum
satisfactory level.
Because of our strong balance sheet and strategic focus on niche markets, we have done extremely
well, outperforming the industry and generating an underwriting profit in 2002. Our GAAP combined
Each of our four
ratio for continuing operations was 94.6% in the year, down from 109.2% in 2001.
domestic segments
Our improved underwriting results not only contributed to 2002 earnings, but also provide a base
for future earnings growth. Each financial year is a blend of underwriting results from the current year
delivered sharply
and prior years. Since premiums are not fully earned until the fifth quarter after business is written in higher returns.
primary insurance lines and the tenth quarter in reinsurance lines, our 2002 underwriting performance
will continue to benefit earnings in 2003 and 2004. Similarly, the impact of our pricing in 2003 and
2004 will extend into subsequent years.
Contraction of Industry Capacity
Even as prices have risen, property casualty insurance industry capacity has declined in spite of
new entrants into the business, resulting in less competition and creating unusual opportunities for
a well-capitalized insurer like Berkley.
Although there was an excess of industry capacity chasing too little business four years ago, that sit-
uation has changed dramatically. As of the end of the third quarter of 2002, the
Total Revenues
latest period for which figures are available, the industry’s capital base had been Dollars in Billions
$2.6
reduced to $273 billion from a peak of $336 billion in June 1999. This $63 billion
$1.9
decrease signifies a substantial loss in industry underwriting capacity. In our $1.6 $1.7 $1.8
view, it is likely that the industry’s capital base is, in fact, currently overstated by
more than $50 billion because of inadequate loss reserves, making the prospective
loss of capacity even greater. Approximately one-half of the industry’s capital is
1998 1999 2000 2001 2002
related to commercial lines business. However, substantially more than one-half of
Specialty Reinsurance International
the decline in capital is related to commercial lines. Thus, the industry’s commer- Alternative Markets Regional Discontinued
cial lines capacity has suffered a disproportionate reduction.
Industry contraction has occurred because of significant problems on both the asset and liability
sides of many insurers’ balance sheets. On the asset side, the industry has incurred sizable investment
losses from bond defaults, including WorldCom and Enron, as well as from lower equity prices. On the
liability side, the industry faces asbestos liability problems and has paid huge losses from the World
Trade Center tragedy. In addition, the same corporate scandals that created asset problems — that is,
WorldCom, Enron and others — have resulted in a rash of directors’ and officers’ liability insurance
claims, hurting the liability side.
7
10. C H A I R M A N ’ S L E T TER Continued
We have avoided nearly all these problems — which is one reason why we are doing so well today.
We had minimal defaults on our fixed income holdings in 2002. We have limited exposure to asbestos
losses. We write directors’ and officers’ liability coverage for small-to-mid-sized companies, not for the
We had an large corporations that are generating the current rash of high-profile liability claims.
Equally important, we have protected our balance sheet through our cautious reserving practices.
excellent year,
At a time when industry capacity has decreased, the policyholders’ surplus of our consolidated insur-
generating record
ance subsidiaries increased to $1,275 million at the end of 2002 from $928 million a year earlier,
financial results. boosting our capacity to write well-priced new business. Although one can never be certain of the
appropriate amount of loss reserves, since they are based on estimated future claims, we believe
our reserves are adequate and are based on a prudent view of the world. The ratio of paid to incurred
claims is a key measure of how fully current reserves are being established. A lower ratio indicates
a stronger reserve position. In 2002, our paid-to-incurred ratio was 81%, far better than the
industry average.
Ultimately, trusting relationships are critical to success in any business, but especially so in the
insurance business. Agents, brokers and customers select a company based not only on price, but also
on their belief that the insurer will meet its obligations in an uncertain future. Our producers and cus-
tomers know that Berkley has the financial resources and integrity to perform in an appropriate manner
and deliver on our promises. Our companies regularly have maintained A or better A.M. Best Co. ratings
over the last 25 years. These ratings are a sign of strength and stability for our agents and policyholders
not only in good times, but even more importantly in difficult and uncertain times.
Positioning the Company for Profitable Growth
We had an under-
Since 1999, in addition to examining our reserves and adding to them in what we consider to be a
writing profit with
timely manner, we have addressed various other structural and financial matters in order to maintain the
a combined ratio financial integrity of our enterprise. These actions have included:
of 94.6%. • The consolidation of the regional business from ten units to four in 1999 to sharpen the segment’s
competitive focus, reduce expenses and gain scale;
• The restructuring of our reinsurance business in 2000 to refocus its competitive position and better
leverage our capital, and the repositioning of our treaty reinsurance business toward specialty-type
business written in the form of casualty excess of loss treaties;
• Our withdrawal from personal lines business in the regional segment beginning in 2001 because of
limited profit opportunities;
• The closing of the unprofitable alternative markets division of our reinsurance segment in 2001; and
• The expansion of our facultative reinsurance business, in which we have consistently earned
excellent returns.
8 W. R. BERKLEY CORPORATION AND SUBSIDIARIES
11. By acting on the issues before they became serious problems, we entered 2002 well positioned to
take advantage of an improving market. Moreover, through these actions, your Company today, more
than ever, is focused on niche markets in which we can apply our expertise to generate excellent finan-
cial results. In 2002, of our 22 domestic business units, all but two had an underwriting profit, the lone
exceptions being our treaty reinsurance and surety operations.
We were reasonably disciplined in the soft phase of the insurance market cycle, with the result that
our written premiums did not grow significantly. However, as market conditions have improved, we have
shifted into an expansive mode. We expect insurance
To take full advantage of current market opportunities and reduce our external reinsurance costs, for
prices to continue to
the past two years we have been retaining more premium and ceding less to reinsurers.
strengthen in 2003.
In addition, we have raised $483 million in equity capital through three public offerings since early
2001 and recently raised approximately $200 million in a senior debt offering. In doing so, we continue
to build a strong, well-structured balance sheet. We are investing this additional capital not only in
existing operations, but also in ventures in which our financial strength, reliability and expertise allow
us to develop new niche positions.
We also formed Berkley Medical Excess Underwriters, LLC to participate in the rapidly hardening
medical malpractice market. We believe that contractions and withdrawals by other medical malpractice
carriers have created an unusual opportunity to provide rational long-term capacity to a narrow seg-
ment of this market — that is, medical malpractice excess insurance and reinsurance coverage and
services to hospitals and hospital associations. This new unit spent 2002 building its organization
and establishing relationships with producers, and is expected to write significant busi-
Paid to Incurred Claims
ness in 2003. W. R. Berkley Versus Industry
In 2002, we purchased a 20.1% interest in Kiln plc, one of the leading managing 99% 101% 101% 103%
86% 91% 92%
84%
agencies in the Lloyd’s insurance market in London. We have had different business 83% 81%
relationships with Kiln since 1974. More recently, as we spent time examining the current
state of the London market, we saw an opportunity to enter into quota share reinsurance
contracts with two Lloyd’s syndicates managed by Kiln and with a syndicate managed by
MAP Capital Limited. Together, these arrangements gave us $171 million of net business 1998 1999 2000 2001 2002
2002 industry ratio is estimated
in 2002, mainly in short-tail classes of insurance.
We are forming a United Kingdom authorized insurance company to write domestic U. K. casualty
risks. It is anticipated that the company will commence operation in the third quarter of 2003. The
formation of the company is subject to certain approvals, including the approval of the U. K. Financial
Services Authority.
Late in the year, we formed B F Re Underwriters, LLC to underwrite casualty facultative insurance on
a direct basis. The new unit complements our existing unit, Facultative ReSources, Inc., which writes
coverage through intermediaries.
9
12. C H A I R M A N ’ S L E T TER Continued
Strengthening Management
We are fortunate to have outstanding people who are fully capable of optimizing our results.
In August 2002, Philip J. Ablove joined our Board of Directors, filling a vacancy. We welcome the
Our quota share experience and insight that he brings to the Company.
reinsurance We had several key management promotions since last year. W. Robert Berkley, Jr., a Senior Vice
contracts at President and Director, was named head of our specialty insurance operations. Fernando Correa Urquiza
Lloyd’s produced was promoted to President of Berkley International, LLC, our international joint venture. Edward A.
$171 million of net Thomas, who was a Senior Vice President, became a consultant to the Company. Kenneth R. Hopkins
became President and Chief Operating Officer of Berkley Risk Administrators Company, LLC, while
premiums written.
Mark C. Tansey, previously that unit’s President and Chief Executive Officer, became its Chairman and
continued as its Chief Executive Officer.
We are pleased that several experienced, talented individuals joined us in new ventures or opera-
tions. John S. Diem became President of Berkley Underwriting Partners, LLC. Daniel L. Avery joined us
as President of B F Re Underwriters, LLC. Robert D. Stone became Managing Director of our newly
formed private equity investment management subsidiary, with primary responsibility for developing this
private equity investment portfolio. Luie C. Dy Buncio joined us as Chief Executive Officer of our
Philippine operations. Stuart Wright will head our new United Kingdom insurance company.
Corporate Governance
Corporate governance is one of the central issues facing corporations and their shareholders. The pas-
sage of the Sarbanes-Oxley Act last summer imposed new federal standards on corporate directors and
managements. In our view, some of the arbitrary tensions created by Sarbanes-Oxley will not necessarily
Corporate result in improved corporate performance.
governance is However, corporate governance is not something new or trendy at Berkley. We have always been
not something clear in our philosophy and commitment in managing the Company for the benefit of shareholders with
new or trendy a high level of accountability. Outside independent directors have always constituted the majority of our
at Berkley. board, and we never have had more than two inside directors. The Audit and Compensation Committees
of the Board consist now, and have always consisted, exclusively of outside non-executive directors who
are independent. Executive compensation and the granting of options are linked to long-term perfor-
mance. Our Board recognizes that it has a fiduciary responsibility for the long-term viability of the
Company, not just for short-term results.
We believe we are responsible first and foremost to our owners. We are also responsible to other
constituents, including employees, customers and society. We are intent on having a corporation that
10 W. R. BERKLEY CORPORATION AND SUBSIDIARIES
13. reaches its maximum potential and, through its actions, maintains the trust of all its constituencies.
Outlook for 2003
We are enthusiastic about the Company’s prospects in 2003 and beyond. The current hardening cycle
of the property casualty insurance market has yet to show any signs of nearing an end. In our view,
insurance prices are likely to continue to increase throughout 2003 and well into 2004, reversing the
price erosion that occurred in the 1990s.
We believe Berkley is unusually well positioned to take advantage of the current strong market. At a
time when the ability of many property casualty insurers to write new business is being hurt by unre- We are enthusiastic
solved problems of the past, we believe we have an extraordinary opportunity to grow. We not only have about the Company’s
the capital, but also the people, relationships and reputation to build our business and prosper. prospects.
I wish to thank our employees, brokers and agents, who work as partners to serve our customers
and create value for our shareholders. I also wish to thank our shareholders for their patience during the
difficult years of the insurance industry cycle.
The teamwork and commitment of our people have enabled Berkley to become one of the most suc-
cessful, innovative and fastest growing property casualty insurance companies in America. We are commit-
ted to the continued delivery of outstanding results, with accountability and the highest ethical standards.
Sincerely,
William R. Berkley
Chairman of the Board and
Chief Executive Officer
March 20, 2003
11
14. INVESTMENTS
e manage our $4.7 billion investment portfolio with three major objectives: achieving favorable
W risk-adjusted returns; avoiding investment losses that might impair our ability to grow our insur-
ance business; and matching the duration of our fixed income portfolio to the duration of our
liabilities, including our policy claims and debt obligations. Meeting these objectives reinforces our ability
to underwrite insurance profitably.
Our risk-averse investment approach produced favorable returns during 2002 in spite of the worst credit
markets since the 1930’s crash. Our portfolio generated a book yield of 5.4% in 2002, and the unrealized
gain on the portfolio increased by over $100 million. These results compared with a decline of 22% for the
stock market as measured by the S&P 500 Index and the widespread losses incurred by investors owning
lower-grade bonds and more exotic securities.
Net investment income was $188 million in 2002, down from $195 million in 2001, due to the impact
FIXED INCOME PORTFOLIO DISTRIBUTION of falling interest rates. Our new money investment rate
was 5.25% on a tax-adjusted basis at year-end. Our chal-
lenge is to maximize our returns, while continuing to
18% 14% 25% 23% 16% 4% control risk, in the current period of historically low rates.
U.S. Government Cash and State and Mortgage-backed Corporate Foreign
and government cash municipal securities bonds Two Broad Investment Segments
bonds
agency equivalents
Our portfolio is comprised of two broad segments:
• $4,106 million invested in fixed income securities; and
• $557 million invested in alternative opportunities, including merger arbitrage, convertible securities
arbitrage and income-oriented real estate investment trusts.
We invest reserve-related monies in high-quality fixed income securities to support our ability to meet
our obligations to policyholders. Another critical goal is to maintain adequate liquidity, so that insurance
claims and other obligations can be met without having to sell investments at an inappropriate time.
Assets related to stockholder funds may be invested with a somewhat different approach that still
emphasizes liquidity and risk limitations, but also provides diversification and more favorable return charac-
teristics. A primary goal for these investments is to achieve strong returns with modest volatility. Since
stockholders’ equity is a key factor in the amount of premium we can write, its preservation is vital to our
ability to take advantage of opportunities in the insurance market.
Fixed Income Investments
We had another successful year in fixed income investing. We not only generated solidly positive returns,
but also avoided nearly all the highly publicized credit market losses in 2002 that stemmed from bankrupt-
cies and improprieties, including WorldCom, Adelphia and Tyco. We didn’t invest in these companies
because we couldn’t fully validate their business models and believed their accounting was extremely com-
plicated. Our fixed income write-offs in 2002 represented just 0.4% of the portfolio.
At year-end, our fixed income investments were allocated 32% to U.S. Government and government
agency securities and cash and cash equivalents, 25% to state and municipal securities, 23% to mortgage-
backed securities, 16% to corporate bonds, and 4% to foreign bonds. In late 2001 and early 2002, as the
12 W. R. BERKLEY CORPORATION AND SUBSIDIARIES
15. yield spreads between corporate bonds and
Treasuries became unusually narrow, we real-
located some assets out of corporate instru-
ments and into government-related securities.
Our resulting underweighting in corporates
benefited relative performance in 2002, when
corporates were the worst-performing sector of
the bond market.
Our overweighting in mortgage-backed
securities also contributed to results, since
these securities were among the market’s top
performers in the year. Although mortgage-
backed securities carry the likelihood that we
will be repaid ahead of maturity, that prospect
was better in 2002 than the risk on some cor-
porates of not being repaid at all.
PAUL J. HANCOCK EUGENE G. BALLARD
We allocate assets between taxable and Senior Vice President, Senior Vice President,
Chief Corporate Actuary Chief Financial Officer and Treasurer
tax-exempt securities based on their relative
ROBERT C. HEWITT JAMES G. SHIEL IRA S. LEDERMAN
yields and the Company’s anticipated tax Senior Vice President, Senior Vice President, Senior Vice President,
position. In the second half of the year, we Risk Management Investments General Counsel and Secretary
invested new monies primarily in tax-exempt
municipal securities, where we found the best combination of risk and tax-adjusted yield. As a result, we
increased our holdings of municipals to 25% of the fixed income portfolio at the end of 2002 from 20% at
the end of 2001.
We have a small position in the higher quality segment of the non-investment-grade corporate bond
market. Our goal is to earn higher returns without taking excessive risk. We increased this position to about
2% of the fixed income portfolio at year-end.
The weighted average credit rating of our fixed income portfolio was AA at the end of 2002. The dura-
tion of the fixed income portfolio was 4.8 years.
Alternative Investments
We seek alternative investments that offer attractive returns without undue risk and are countercyclical to
our investments in bonds, with low volatility. Our alternative investments are managed by outside experts.
During the year, we reduced our investment in merger arbitrage and increased our allocation to con-
vertible securities arbitrage and real estate investment trusts (REITs). Merger arbitrage has been a con-
sistently profitable investment for Berkley for more than a decade, but produced only modest returns in
2002 due to a paucity of merger and acquisition activity. We continue to have a small position in merger
arbitrage and believe that returns will improve when corporate merger activity picks up.
In 2003, we plan to allocate additional assets to real estate for diversity and also plan to begin
investing limited amounts in non-real estate private equity transactions.
13
16. THE STORY OF RISK
1792 B.C.
Insurance is vital to the smooth functioning of the U.S. and global
economies. By transferring and pooling risk, insurance makes it possi-
ble for businesses to continue in operation even in the face of fires,
storm damage, accidents, theft and other unexpected losses.
The Babylonians were among the first to recognize the concept of
insurance almost 4,000 years ago. To support the growth of trade, they
devised a system under which a lender who supplied capital for a ven-
ture would forgive the loan if the trader was robbed or his ship sank.
The trader paid an extra amount, or premium, for this protection, in
addition to paying interest. The lender, in collecting premiums from
many traders, was able to absorb the losses of the few.
Various forms of insurance were also employed by the Phoenicians,
Greeks and Romans. The use of insurance expanded rapidly in the sev-
enteenth and eighteenth centuries with the growth of British commerce.
Today, insurance is a major global industry. Earned premiums of U.S.
2002
property casualty insurance companies totaled well over $300 billion in
2002. As risk increases and becomes more complex, the opportunities
for a well-managed insurer such as Berkley are significant.
14 W. R. BERKLEY CORPORATION AND SUBSIDIARIES
17. OPERATING SEGMENTS
Balanced Participation in Five Segments
Each of Berkley’s five business segments — specialty, alternative markets, reinsurance, regional and international —
offers excellent prospects for profitable growth. Throughout the segments, we seek to capitalize on opportunities and max-
imize earnings and cash flow by applying our philosophy of decentralized management and entrepreneurship. Each indi-
vidual operating unit is led by a team of experienced insurance professionals who are close to their customers and run the
business as if it were their own. Operating unit management has the authority and responsibility to respond to opportuni-
ties in its given marketplace with an overall goal of maximizing returns. Compensation includes performance incentives
based on return on capital. Operating unit results are monitored closely at both the segment and holding company levels
to identify opportunities or problems quickly and take early action. In addition, capital, investment and reinsurance
management, technological planning and professional staff services are centralized in the holding company to capture
economies of scale. We form new operating units when we see an opportunity in the marketplace and are able to hire
people with the specialized knowledge and entrepreneurial skill to capitalize on that opportunity.
CONTRIBUTIONS TO REVENUES BY SEGMENT
2002 31% 14% 21% 30% 4%
2001 26% 14% 16% 36% 8%
Specialty Alternative Reinsurance Regional International
Markets
REVENUES BY SEGMENT DOLLARS IN MILLIONS
2002 $773 $362 $514 $757 $104
2001 $441 $234 $281 $615 $138
Specialty Alternative Reinsurance Regional International
Markets
15
18. SPECIALTY SEGMENT
O
ur specialty insurance operations increased their earnings by
nearly 300% in 2002, generating record pre-tax operating
income. These results were achieved by capitalizing on wide-
spread opportunities in a strong market. Revenues increased 75%,
reflecting significantly higher earned premiums on a combination of
higher average premium rates and an increased policy count. After
years of unfavorable market conditions resulting in substantial under-
writing losses throughout the industry, pricing as well as terms and
conditions have improved considerably over
SPECIALTY SEGMENT
DOLLARS IN MILLIONS the past two years.
2002 2001
We are leveraging the current favorable
Total assets $2,230 $1,580 W. ROBERT BERKLEY, JR.
market environment to increase the size and Senior Vice President
Total revenues 773 441
scope of our specialty operations. We are
Pre-tax operating income 119 30
doing so by allocating additional capital and management resources to our special-
GAAP combined ratio 90% 103%
ty niches at a time when some competitors, constrained by capital limitations, are
Return on equity 19% 8%
unable to grow. A key goal is to carve out leading positions that will produce supe-
Excludes realized investment gains and losses.
rior returns throughout the market cycle.
Our specialty units underwrite complex and sophisticated risks, providing coverage primarily to the
excess and surplus lines, professional liability and commercial transportation markets. Specialty insurance is
a prime example of our corporate strategy of emphasizing sectors of the property casualty insurance market
where we can apply expertise, flexibility and strong relationships to competitive advantage.
Increasingly, business is returning to the specialty marketplace as standard carriers narrow their risk
profiles and become less willing to underwrite risks that require specialized, tailored solutions. Our specialty
units have benefited from this trend and are employing their capital and skills to maximize this opportunity.
Operating Unit Results
Admiral Insurance Company, our largest specialty unit, provides excess and surplus lines coverage to medi-
um- and large-sized commercial risks that generally involve moderate to high degrees of risk. Admiral con-
centrates on commercial casualty, professional liability and commercial property lines of business produced
by wholesale brokers. It enjoyed an outstanding year in 2002, increasing its net premiums written by 57%
and achieving excellent profitability. Admiral has become a leader in the excess and surplus lines market-
place by capitalizing on its underwriting skills, customer relationships and A.M. Best rating of A+ (Superior).
Nautilus Insurance Company and its subsidiary, Great Divide Insurance Company, write small-to-
medium-sized commercial property and commercial casualty risks produced by a carefully chosen network
of general agents. Nautilus reported dramatic revenue and earnings growth in 2002, driven by broad premi-
um rate increases. Nautilus is seeing the
benefits of its technology initiatives that
have increased its productivity and made
it possible to deliver market-leading levels
of timely and responsive service to pro-
ducers and insureds.
JAMES S. CAREY J. MICHAEL FOLEY ARMIN W. BLUMBERG ALFRED SCHONBERGER
Admiral Insurance Company Berkley Medical Excess Carolina Casualty Clermont Specialty Managers, Ltd.
Underwriters, LLC Insurance Company
16 W. R. BERKLEY CORPORATION AND SUBSIDIARIES
19. Carolina Casualty Insurance Company specializes in transporta-
tion insurance for long-haul trucking and public automobile risks,
operating as an admitted carrier in all states. It continued to rebound
from the difficult market conditions of 1999-2000, increasing its
premiums written by 84% in 2002 and posting excellent operating
results. Carolina Casualty had dramatically cut back its business in DOUGLAS J. POWERS PAUL J. FLEMING THOMAS M. KUZMA
2000, recognizing that market conditions would not allow for prof- Monitor Liability Managers, Inc. Monitor Surety Managers, Inc. Nautilus Insurance Company
itable underwriting. Its disciplined approach of increasing prices, tightening policy terms and eliminating
unprofitable producers, taken well in advance of similar actions by many of its competitors, is now signifi-
cantly benefiting results.
Four of our specialty units, Monitor Liability Managers, Inc., Monitor Surety Managers, Inc., Clermont
Specialty Managers, Ltd., and Berkley Medical Excess Underwriters, LLC, underwrite and service specific
lines of business on behalf of various Berkley carriers.
Monitor Liability specializes in professional liability insurance, including directors’ and officers’ liability,
employment practices liability, lawyers’ professional liability, management liability, and non-profit directors’
and officers’ liability coverages. Monitor Liability avoided losses from recent corporate scandals and
increased its prices and tightened considerably its policy terms and conditions in the wake of industry
losses. It achieved outstanding revenue growth and strong earnings in 2002.
Monitor Surety writes contract bonds, court and fidicuary bonds, license and permit bonds, and public
official bonds, with a primary focus on providing surety bonds to mid-sized contractors. Monitor Surety was
the only Berkley specialty unit to experience a difficult year in 2002, posting unsatisfactory results because
of weak conditions in its market. It is cautiously optimistic about the prospects for the surety line market-
place in 2003 and believes its book of business will return to profitability.
Clermont writes package insurance programs for luxury condominium, cooperative and rental apartment
buildings and restaurants in the New York City metropolitan area. It improved its earnings and increased its
net written premiums by 54% in 2002, capitalizing on opportunities as many of its competitors scaled back
their underwriting activity following the events of September 11, 2001.
Berkley Medical Excess is our newest specialty unit,
DIRECT PREMIUM DISTRIBUTION
established at the end of 2001 to provide medical mal-
practice excess insurance and reinsurance coverage and
services to hospitals and hospital associations. Berkley
Medical Excess believes that an opportunity exists to 40% 16% 16% 7% 21%
build a long-term position in this line by providing mean- General Liability Professional Commercial Directors Other
ingful capacity based on rigorous exposure analysis and Liability Transportation & Officers
rational pricing. The unit spent the early months of 2002
assembling a multi-disciplined team of seasoned professionals and establishing sound procedures. It began
accepting business late in the year. The early response from its distribution channels and potential insureds
has been positive.
Specialty Segment Outlook
As of year-end 2002, increased pricing and controlled underwriting continued to be the dominant trends
throughout the specialty segment. While rates and policy terms will not improve indefinitely, we expect
another strong market in 2003.
17
20. ALTERNATIVE MARKETS SEGMENT
O
ur alternative markets segment enjoyed an outstanding
year, increasing its pre-tax operating income by 83%
and its revenues by 55%.
These results were achieved by capitalizing on strong
demand for both risk-bearing and fee-based services. As pri-
mary insurance markets have hardened and rates have
increased, more corporations and government entities have
turned to the alternative markets to control their costs. Market
conditions in 2002 were the best in
ALTERNATIVE MARKETS SEGMENT more than a decade, with the prospect
DOLLARS IN MILLIONS
2002 2001 of further improvement in 2003. H. RAYMOND LANKFORD
Senior Vice President
Total assets $1,198 $860 This segment provides:
Total revenues 362 234 • Workers’ compensation insurance on an excess basis for self-insureds and on a
Pre-tax operating income 63 34 primary basis for selected programs;
GAAP combined ratio 96% 109% • Bundled and unbundled fee-based services to help corporations, government and
Return on equity 21% 12% non-profit entities, and other organizations develop and administer self-insurance
Excludes realized investment gains and losses. programs and utilize other alternative means of financing or transferring risk; and
• Management of state workers’ compensation residual market mechanisms.
Our alternative markets units have worked hard to capitalize on current opportunities. Our excellent rep-
utation, gained from our success in serving clients and assisting them in reducing loss costs, is the lever
that enables us to compete effectively in this large, growing marketplace.
Growth in the fee-based portion of the segment in 2002 was achieved primarily through the acquisition
of new business. Growth in our risk-bearing workers’ compensation business was achieved through a combi-
nation of new business and increased pricing. Retention of business remained strong despite higher prices.
Operating Unit Results
Berkley Risk Administrators Company, LLC (BRAC), a third-party administrator and program manager,
posted record revenues and earnings in 2002. BRAC designs, implements and manages alternative risk
financing programs and self-insurance pools for businesses, governments, educational institutions, tribal
nations and non-profit entities, and provides administrative and claims services to insurance companies.
Excellent results in 2002 reflected growth in existing client business as well as significant new business.
Several major contracts were renewed in 2002 for multiple-year periods.
BRAC was formed in 1998 with the merger of Berkley Risk Services and Berkley Administrators.
Continuity of senior management has helped contribute to excellent client retention, and revenue has
increased over 70% since the merger.
One important component of BRAC’s revenue is the
administration of state workers’ compensation assigned risk
plans. During 2002, BRAC was awarded significant portions of
contracts in two new states commencing on January 1, 2003.
BRAC now administers all or portions of plans in nine states.
MARK C. TANSEY KENNETH R. HOPKINS MELODEE J. SAUNDERS
Berkley Risk Administrators Berkley Risk Administrators Midwest Employers
Company, LLC Company, LLC Casualty Company
18 W. R. BERKLEY CORPORATION AND SUBSIDIARIES
21. Record premium volume was recorded during 2002
REVENUE DISTRIBUTION BY LINE
in a non-profit social service program BRAC has admin-
istered and managed for many years. This program,
which previously generated fee income, is being shifted
to a risk-bearing basis. 77% 14% 9%
Midwest Employers Casualty Company (MECC) is an Workers’ Compensation, Voluntary Liability, Workers’
industry leader in providing excess workers’ compensa- Automobile Compensation,
& Property Assigned Risk
tion coverage to self-insured employers and groups above
their self-insured or retained limits. It enjoyed significant
growth in written premium and operating income in 2002 SOURCES OF REVENUE
in a favorable market environment. MECC is widely
known for providing unique and valuable risk-manage-
ment services to its clients. These services include pro- 59% 25% 11% 5%
prietary benchmarking tools, a dedicated client services Private & Public Entity Self-Insurance Risk Retention Residual Govern-
unit and proactive, value-added claim services. In addi- Groups, Associations Market ment
& Others Services Pools
tion, the company has developed an online educational
tool with job-specific safety training and self-insured program management courses to help clients achieve
best practice results in their self-insured programs.
Key Risk Management Services, Inc., develops and administers workers’ compensation programs for
insured clients through an affiliate, Key Risk Insurance Company, as well as for self-insured clients.
Revenues and operating income both rose strongly in 2002. Key Risk conducts business in North Carolina,
South Carolina and Georgia, and plans to expand into Virginia in early 2003.
The focus and expertise Key Risk has developed as a specialist in workers’ compensation, combined
with the synergy of serving insured and self-insured risks,
continues to set the company apart from its competition. A
substantial portion of its growth in 2002 stemmed from man-
aged care services, including medical and vocational case
management and utilization review.
Preferred Employers Insurance Company is our
JOE W. SYKES LINDA R. SMITH
California workers’ compensation subsidiary which was Key Risk Management Preferred Employers
Services, Inc. Insurance Company
founded in 1998. Significant premium was first written in
2000. Growth has been substantial since then as the California market has greatly strengthened. Preferred
Employers focuses on a specific market niche — providing workers’ compensation coverage to owner-man-
aged, small employers in California. It has been highly successful in capitalizing on opportunities in this
niche, nearly doubling its revenues in 2002 and strongly increasing its earnings through a combination of
new business and substantial price increases in both 2001 and 2002. The company anticipates continued
strong growth in 2003.
Alternative Markets Segment Outlook
We expect another outstanding year in 2003, as the hardening of the conventional insurance market contin-
ues to move business into the alternative markets. Our rate of revenue growth may slow somewhat following
an exceptional year in 2002. However, profitability and return on equity are expected to remain strong.
19
22. REINSURANCE SEGMENT
A
year ago, we said we anticipated “robust earnings
growth” in our reinsurance segment in 2002 following
a series of actions to refocus this business on its
best opportunities. In fact, results met expectations, as the
segment returned to profitability while increasing its total
revenues by 83%.
We benefited in 2002 not only from the best reinsurance
market conditions in more than a decade, but also from our
REINSURANCE SEGMENT strategic decision to withdraw from
DOLLARS IN MILLIONS commodity-type standard treaty
2002 2001
products and alternative markets
Total assets $2,548 $1,751
reinsurance because of inade- JAMES W. McCLEARY
Total revenues 514 281 Senior Vice President
quate returns.
Pre-tax operating income (loss) 32 (57)
Moving forward, we are highly focused on market sectors in which we can
GAAP combined ratio 103% 141%
apply our underwriting capabilities, entrepreneurial skills, ability to take significant
Return on equity 7% N/A
participations and strong customer relationships to competitive advantage. During
Excludes alternative markets reinsurance and realized investment gains
and losses. 2002, we substantially increased the size of our facultative business, building on
its consistently excellent performance in recent years, and restaffed personnel in our treaty business.
We believe we are poised for continued growth. We have a core group of reinsurance businesses with
strong competitive positions, providing an opportunity to build a larger, more profitable reinsurance opera-
tion in the years ahead.
Operating Unit Results
Berkley Insurance Company (BIC) is our primary reinsurance risk-bearing entity. Business is written on
behalf of BIC by various affiliated underwriting management units.
Our two companies in facultative reinsurance are Facultative ReSources, Inc., which writes business
through intermediaries, and B F Re Underwriters, LLC, formed in 2002 to write business on a direct basis.
These units, with distinct customer bases and marketing strategies, together enable us to provide nation-
wide underwriting services to clients across a broad spectrum of size, risk profiles and reinsurance rela-
tionships. Facultative ReSources’ affiliate, Vela Insurance Services, Inc., is an excess and surplus lines
specialty underwriting manager.
Our facultative units had an outstanding year in 2002, increasing their net premiums written by 113%
and achieving a return on equity in excess of 30%. Opportunities in the facultative area are currently very
strong because of an unusual confluence of events, includ-
ing the withdrawal of many competitors and the doubling,
even tripling in some cases, of prices in the past year and a
half. We believe we have ample capital to take advantage of
today’s favorable market conditions.
DANIEL L. AVERY TOM N. KELLOGG JOHN S. DIEM
B F Re Underwriters, LLC Berkley Capital Berkley Underwriting
Underwriters, LLC Partners, LLC
20 W. R. BERKLEY CORPORATION AND SUBSIDIARIES
23. Facultative ReSources has grown rapidly and is now the
number one or two market for every broker in its distribution
network. This unit is highly opportunistic, emphasizing lines
of business where pricing is attractive and exiting lines when
prices drop below satisfactory levels. Major areas of growth
in 2002 included contracting, long-haul trucking and work-
ROGER J. BASSI CRAIG N. JOHNSON RICHARD P. SHEMITIS
ers’ compensation reinsurance — all areas that had previ- Fidelity & Surety Reinsurance Signet Star Re, LLC Vela Insurance Services, Inc.
Managers, LLC
ously been dormant because of inadequate prices.
We formed B F Re Underwriters late in the year, hiring a skilled team of seasoned managers and spe-
cialists to staff the new unit. We expect B F Re to begin contributing to results in 2003.
Signet Star Re, LLC, is our specialty casualty treaty reinsurance provider. Results were essentially
break-even in 2002 as the unit emerged from a major downsizing in 2001, when it withdrew from com-
modity-type standard treaty reinsurance products. Signet Star Re improved its underwriting team in 2002
and has now shifted from a downsizing mode to a growth mode, emphasizing specialty-type business writ-
ten in the form of excess of loss treaties.
Fidelity and surety coverage is written through Fidelity & Surety Reinsurance Managers, LLC. This unit
had a difficult year due to continued inadequate surety market pricing. We are focusing on a limited number
of small fidelity and surety accounts until market conditions improve.
Berkley Underwriting Partners, LLC, formed in 2000, oversees managing general underwriters (MGU)
program business written through its affiliates, Gemini Insurance Company and StarNet Insurance
Company. Net premiums written increased to more than $50 million in 2002, the unit’s second full year of
operations. The dislocation of many MGU programs due to lost market and/or lost reinsurance support
provides additional opportunities for profitable growth.
Another unit, Berkley Capital Underwriters, LLC, became operational in February 2002. It offers a spe-
cialty reinsurance risk transfer product to insurance companies where capital constraint is the primary obsta-
cle to increasing their underwriting activities. This product takes the form of a risk quota share with various
adjustable features. The unit wrote $33 million of net premiums in its first year, in line with expectations.
In 2002, BIC acquired a 20.1% interest in Kiln plc, becoming its largest shareholder. Kiln’s operating
subsidiary, R J Kiln & Co. Ltd, is a leading agency in the
TOTAL BUSINESS BY UNIT
Lloyd’s of London insurance market. Effective January 1,
2002, we entered into quota share reinsurance contracts
with two Lloyd’s syndicates managed by Kiln as well as
with a syndicate managed by MAP Capital Limited. We 28% 21% 11% 8% 7% 25%
wrote $171 million of net reinsurance premiums through Treaty Facultative Vela Berkley Other* Lloyd’s
Under-
these contracts in 2002. writing
*Berkley Capital Underwriters, 5%; Fidelity & Surety, 2% Partners
Reinsurance Segment Outlook
We are optimistic about the outlook for the reinsurance segment in 2003 and beyond. We believe we
have the expertise, the capital and the reputation to continue to grow profitably and achieve a favorable
return on equity.
21
24. REGIONAL SEGMENT
O
ur regional segment had a banner year, posting a 158% increase in
pre-tax operating income. The regional group benefited not only
from strong market conditions, but also from strategic actions
taken in prior years to position the business for profitable growth.
These actions included the consolidation of the group in 1999 from
ten regional companies to four operating units, resulting in cost savings
and improved customer focus. In the wake of that consolidation, we have
reduced the segment’s costs in both absolute and relative terms each of
REGIONAL SEGMENT the past three years. Our expense ratio of 32%
DOLLARS IN MILLIONS in 2002 was down from 36% in 1999. While
2002 2001
expense savings are always welcome, our major
Total assets $1,591 $1,463
accomplishment was to improve our loss ratio to ROBERT P. COLE
Total revenues 757 615
59% in 2002 from 85% in 1999. The four entities Senior Vice President
Pre-tax operating income 104 40
are achieving superior results under the redesigned structure.
GAAP combined ratio 92% 102%
In addition, during the past three years, we have rewritten and re-priced our
Return on equity 20% 10%
business to eliminate unprofitable segments and tightened our risk selection
Excludes personal lines business and realized investment gains and losses.
methods. In 2002, as market conditions continued to strengthen, we implemented
another round of rate increases. As older business runs off the books, higher prices are taking full effect
on our results.
Equally important, 2002 saw the impact of our withdrawal from personal lines, which had accounted
for about one-fifth of the regional group’s annual premium revenue. We withdrew from these lines
because of their limited profit potential and the volatility of results. An additional benefit was our ability
to re-deploy our management and information technology resources to commercial lines.
The regional group is now dedicated exclusively to writing commercial lines, and is committed to
being an industry leader in serving the needs of small and
mid-sized businesses and governmental entities in the
32 states where we operate. Sharply higher segment earn-
ings in 2002 reflected significant improvements in our
commercial lines underwriting and pricing.
BILL C. THORNTON GEORGE C. WYNNE
Acadia Insurance Company Operating Philosophy and Business Unit Results
Berkley Mid Atlantic Group
Our philosophy, which has remained constant for over
35 years, is to manage the group on a decentralized basis, fostering an environment in which our regional
units are close to the communities they serve and are highly responsive to customers’ needs.
We expect the current hard market to continue through 2003 and beyond. Nonetheless, we believe it
is important to look ahead to the time when markets eventually change. Our four operating units are work-
ing on specifics to prepare for the next market cycle. While no one can guarantee immunity from pricing
fluctuations, we are developing strategies to deal with future market challenges in our business.
22 W. R. BERKLEY CORPORATION AND SUBSIDIARIES
25. Our four regional units are Acadia Insurance Company
in the Northeast, Continental Western Insurance Group in the
Midwest, Berkley Mid Atlantic Group on the East Coast and
Union Standard Insurance Group in the South and
Southwest. Acadia, Continental Western and Union Standard
all reported higher operating income in 2002, while Berkley BRADLEY S. KUSTER CRAIG W. SPARKS
Continental Western Union Standard
Mid Atlantic Group recorded lower year-over-year results. Insurance Company Insurance Company
All four units achieved underwriting profits for the year.
Acadia Insurance Company increased its premiums by 30%, generated excellent profits and contin-
ued to expand its markets. We formed Acadia 10 years ago as a one-state operation in Maine. Since then,
the company has developed businesses in New Hampshire and Massachusetts similar to its premium vol-
ume in Maine. It also writes business in Vermont and expanded during 2002 into Connecticut and central
and northern New York, with a focus in each case on underwriting discipline and profitability.
Continental Western is growing within the 14 Midwestern states where it primarily operates. Our with-
drawal from personal lines has been especially beneficial to Continental Western, since those lines repre-
sented only about 20% of Continental Western’s premium income versus over 40% of its weather-related
losses. After three years of addressing underwriting, pricing and operational issues, Continental Western
enjoyed the benefits of those efforts in 2002, producing excellent results.
Union Standard, which primarily operates in seven states, continued to serve its many small commercial
customers. At the same time, the unit began to change its business profile by writing larger accounts,
thereby increasing its average policy size.
Berkley Mid Atlantic experienced increased underwriting losses for part of 2002 following a very
strong year in 2001. The unit addressed these problems, and results improved throughout the fourth
quarter. It enters 2003 with the prospect of a significant earnings increase.
Regional Segment Outlook PERCENTAGE OF REGIONAL OPERATIONS DIRECT PREMIUMS BY STATE
In last year’s annual report, we said, “Today’s insurance WA NH
1% MT VT 7%
market provides some of the most exciting opportunities 1%
ND
MN
4% ME
8%
OR 1%
that we have seen in many years. We will not miss this 1%
ID
SD 4% WI
NY
2% 4% 1% MA
3%
market.” In fact, we did not miss it. We seized the opportu- 7%
NE IA PA 4% CT
5%
nity to achieve strong revenue and income growth. As CO
5% IL
MD
1%
MO 2% VA 1%
2003 begins, we remain enthusiastic about the prospects 3% KS
8% 3%
3%
of our regional group. To maximize future profits, we must NM OK AR TN 2%
NC 4%
TX 2% SC
adjust our thinking and set goals at levels that might have 1% 2% MS AL 1%
2% 1%
seemed unattainable in the past. We fully believe our 6%
regional companies will rise to this challenge as we con-
tinue to build a premier regional business serving the
needs of small to mid-market customers.
23
26. INTERNATIONAL SEGMENT
O
ur international business endured a major challenge in 2002 when
its largest operation, in Argentina, suffered the impact of that
country’s financial crisis. As a consequence, the segment incurred
an operating loss of $2 million.
Our operation in the Philippines performed reasonably well, as
invested assets and assets under administration grew more than 60%
despite a difficult economic environment.
INTERNATIONAL SEGMENT We conduct our international business
DOLLARS IN MILLIONS
2002 2001 through Berkley International, LLC, a joint ven-
Total assets $127 $209 ture with a subsidiary of The Northwestern
Total revenues 104 138 Mutual Life Insurance Company. We own 65%
Pre-tax operating income (loss) (2) 12 of the venture and manage it. FERNANDO CORREA URQUIZA
GAAP combined ratio 106% 102% President, Berkley International, LLC
Return on equity N/A 18% Argentina
Excludes realized investment and foreign currency gains and losses. Argentina’s economic difficulties in 2002 included a currency devaluation of more
than 70%, an effective default of the national debt and higher unemployment. We
were fortunate to have hedged our currency exposure and to have partially switched local investments into
U.S. Treasuries and other foreign assets before the crisis manifested itself. As a result, we significantly
reduced the impact of those changes on our companies.
Nonetheless, we did not escape unscathed. By year-end, the annualized U.S. dollar revenues of our
Argentine business had decreased by nearly two-thirds due to the devaluation of the Argentine peso. In addi-
tion, we faced the reality of operating all year in a very challenging economic and business environment.
To cope with the new reality, we consolidated our three operating companies and holding company into
one entity. Two of our businesses — commercial and personal lines property casualty insurance, and work-
ers’ compensation insurance — remain healthy and showed an underwriting profit during the last quarter of
2002. Our life insurance business suffered more severely. By the end of the year 2002, we managed to
reduce the obligations of our life company to its policyholders by more than 90%, and we anticipate that
this unit will remain essentially dormant for the foreseeable future.
The magnitude of the challenges in 2002 dramatically tested our operations and
our management team in Argentina. Our people worked hard and performed well.
We are cautiously optimistic that our Argentine operations will return to profitable
growth in 2003.
LUIE C. DY BUNCIO
Berkley International
EDUARDO I. LLOBET The Philippines
Berkley International
Philippines, Inc. Seguros S.A. Our Philippines business offers endowment policies to pre-fund educational plans
and retirement income, and also offers a number of traditional life insurance products and riders. It has
grown rapidly since being established in 1997 to become the third largest firm in its line of business.
Pre-tax operating income was $1.7 million in 2002 compared with $3.6 million in 2001.
International Segment Outlook
We expect operating earnings of the international segment to rebound in 2003, based on the prospect that
our Argentine operation will improve its results and our Philippine operation will continue its growth.
24 W. R. BERKLEY CORPORATION AND SUBSIDIARIES