BERKLEY W R CORP
For the period ended Dec 31, 2023. Filed Feb 23, 2024.
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FY2023 · Filed Feb 23, 2024
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Schedule II — Condensed Financial Information of Registrant
Schedule II
Condensed Financial Information of Registrant
Balance Sheets (Parent Company)
| December 31, | |||
|---|---|---|---|
| (In thousands) · 2023 · 2022 | |||
| Assets: | |||
| Cash and cash equivalents | $128,434 | $103,522 | |
| Fixed maturity securities available for sale at fair value (cost $190,708 and $285,900 at December 31, 2023 and 2022, respectively) | 189,189 | 275,511 | |
| Loans receivable (net of allowance for expected credit losses of $1,146 and $559 at December 31, 2023 and 2022, respectively) | 91,304 | 109,793 | |
| Equity securities, at fair value (cost $3,430 in both 2023 and 2022) | 3,430 | 3,430 | |
| Investment in subsidiaries | 9,887,117 | 8,888,455 | |
| Current federal income taxes | — | 34,452 | |
| Deferred federal income taxes | 278,946 | 304,191 | |
| Property, furniture and equipment at cost, less accumulated depreciation | 10,382 | 11,356 | |
| Other assets | 44,186 | 39,741 | |
| Total assets | $10,632,988 | $9,770,451 | |
| Liabilities and stockholders’ equity: | |||
| Liabilities: | |||
| Due to subsidiaries | $178,676 | $53,029 | |
| Other liabilities | 166,399 | 139,150 | |
| Current federal income taxes | 1,721 | — | |
| Subordinated debentures | 1,009,090 | 1,008,371 | |
| Senior notes | 1,821,671 | 1,821,569 | |
| Total liabilities | 3,177,557 | 3,022,119 | |
| Stockholders’ equity: | |||
| Preferred stock | — | ||
| Common stock | 105,803 | 105,803 | |
| Additional paid-in capital | 1,017,691 | 997,534 | |
| Retained earnings (including accumulated undistributed net income of subsidiaries of $8,497,674 and $7,975,360 at December 31, 2023 and 2022, respectively) | 11,040,908 | 10,161,005 | |
| Accumulated other comprehensive loss | (925,838) | (1,264,581) | |
| Treasury stock, at cost | (3,783,133) | (3,251,429) | |
| Total stockholders’ equity | 7,455,431 | 6,748,332 | |
| Total liabilities and stockholders’ equity | $10,632,988 | $9,770,451 | |
Schedule II, Continued
Statements of Income (Parent Company)
| Year Ended December 31, | |||
|---|---|---|---|
| (In thousands) | 2023 | 2022 | 2021 |
| Management fees and investment income including dividends from subsidiaries of $1,261,166, $22,807, and $520,251 for the years ended December 31, 2023, 2022 and 2021, respectively | $1,325,997 | $32,585 | $548,512 |
| Net investment (losses) gains | (5,895) | 1,007 | 1,474 |
| Other income | 368 | 1,916 | 1,138 |
| Total revenues | 1,320,470 | 35,508 | 551,124 |
| Operating costs and expense | 272,750 | 192,175 | 214,995 |
| Interest expense | 126,397 | 129,633 | 144,837 |
| Income (loss) before federal income taxes | 921,323 | (286,300) | 191,292 |
| Federal income taxes: | |||
| Federal income taxes provided by subsidiaries on a separate return basis | 253,292 | 414,660 | 294,731 |
| Federal income tax expense on a consolidated return basis | (284,757) | (258,776) | (226,900) |
| Net federal income tax (expense) benefit | (31,465) | 155,884 | 67,831 |
| Income (loss) before undistributed equity in net income of subsidiaries | 889,858 | (130,416) | 259,123 |
| Equity in undistributed net income of subsidiaries | 491,501 | 1,511,478 | 763,367 |
| Net income | $1,381,359 | $1,381,062 | $1,022,490 |
Schedule II, Continued
Statements of Cash Flows (Parent Company)
| Year Ended December 31, | |||
|---|---|---|---|
| (In thousands) | 2023 | 2022 | 2021 |
| Cash flow from (used in) operating activities: | |||
| Net income | $1,381,359 | $1,381,062 | $1,022,490 |
| Adjustments to reconcile net income to net cash from operating activities: | |||
| Net investment losses (gains) | 5,895 | (1,007) | (1,474) |
| Depreciation and (accretion) amortization | (6,753) | 4,281 | 18,761 |
| Equity in undistributed earnings of subsidiaries | (491,501) | (1,511,478) | (763,367) |
| Tax payments received from subsidiaries | 373,504 | 321,682 | 328,851 |
| Federal income taxes provided by subsidiaries on a separate return basis | (253,291) | (414,660) | (294,731) |
| Stock incentive plans | 51,000 | 49,411 | 48,440 |
| Change in: | |||
| Federal income taxes | (15,793) | (40,746) | (22,017) |
| Other assets | (5,648) | 3,163 | (33,319) |
| Other liabilities | (88,954) | 87,100 | (11,758) |
| Accrued investment income | 1,200 | 890 | 755 |
| Net cash from (used in) operating activities | 951,018 | (120,302) | 292,631 |
| Cash from (used in) investing activities: | |||
| Proceeds from sales of fixed maturity securities | 748,825 | 543,549 | 402,046 |
| Proceeds from maturities and prepayments of fixed maturity securities | 82,075 | 83,134 | 654,134 |
| Cost of purchases of fixed maturity securities | (732,685) | (109,289) | (1,071,823) |
| Change in loans receivable | 17,843 | (16,249) | (18,227) |
| Investments in and advances to subsidiaries, net | 21,605 | (171,062) | (1,411) |
| Change in balance due to security broker | (38) | (10,289) | 10,487 |
| Net additions to real estate, furniture & equipment | (18) | (432) | (1,496) |
| Other, net | 290 | 368 | 95 |
| Net cash from (used in) investing activities | 137,897 | 319,730 | (26,195) |
| Cash (used in) from financing activities: | |||
| Net proceeds from issuance of senior notes | — | (914) | 1,029,579 |
| Repayment and redemption of debt | — | (426,503) | (400,000) |
| Purchase of common treasury shares | (537,163) | (94,140) | (122,426) |
| Cash dividends to common stockholders | (501,456) | (235,192) | (355,736) |
| Other, net | (25,384) | (23,194) | (30,776) |
| Net cash (used in) from financing activities | (1,064,003) | (779,943) | 120,641 |
| Net increase (decrease) in cash and cash equivalents | 24,912 | (580,515) | 387,077 |
| Cash and cash equivalents at beginning of year | 103,522 | 684,037 | 296,960 |
| Cash and cash equivalents at end of year | $128,434 | $103,522 | $684,037 |
December 31, 2023
Note to Condensed Financial Information (Parent Company)
The accompanying condensed financial information should be read in conjunction with the notes to consolidated financial statements included elsewhere herein. Reclassifications have been made in the 2022 and 2021 financial statements as originally reported to conform them to the presentation of the 2023 financial statements.
The Company files a consolidated federal income tax return with the results of its domestic insurance subsidiaries included on a statutory basis. Under present Company policy, federal income taxes payable by subsidiary companies on a separate-return basis are paid to W. R. Berkley Corporation, and the Company pays the tax due on a consolidated return basis.
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