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| 8-K - 8-K 2Q20 COVER EARNINGS RELEASE - BERKLEY W R CORP | wrb-20200721.htm |
| NEWS RELEASE | |||||||||||
W. R. Berkley Corporation 475 Steamboat Road Greenwich, Connecticut 06830 (203) 629-3000 | |||||||||||
FOR IMMEDIATE RELEASE CONTACT: Karen A. Horvath
Vice President - External
Financial Communications
(203) 629-3000
W. R. BERKLEY CORPORATION REPORTS SECOND QUARTER RESULTS
Gross Premiums Written Grew to $2.132 Billion; Book Value Per Share Grew 7.7%, Before Dividends and Share Repurchases
Greenwich, CT, July 21, 2020 - W. R. Berkley Corporation (NYSE: WRB) today reported its second quarter 2020 results.
Summary Financial Data
(Amounts in thousands, except per share data)
| Second Quarter | Six Months | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| Gross premiums written | $ | 2,132,246 | $ | 2,089,861 | $ | 4,363,618 | $ | 4,136,090 | ||||||||||||||||||
| Net premiums written | 1,739,818 | 1,743,464 | 3,585,664 | 3,453,065 | ||||||||||||||||||||||
| Net income to common stockholders | 71,260 | 216,709 | 66,842 | 397,431 | ||||||||||||||||||||||
| Net income per diluted share | 0.38 | 1.12 | 0.35 | 2.06 | ||||||||||||||||||||||
| Operating income (1) | 11,552 | 158,798 | 144,064 | 287,773 | ||||||||||||||||||||||
| Operating income per diluted share | 0.06 | 0.82 | 0.76 | 1.49 | ||||||||||||||||||||||
| Return on equity (2) | 4.7 | % | 15.9 | % | 2.2 | % | 14.6 | % | ||||||||||||||||||
(1)Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and related expenses.
(2)Return on equity represents net income expressed on an annualized basis as a percentage of beginning of year stockholders’ equity.
W. R. Berkley Corporation 2
Second quarter highlights included:
•Average rate increases excluding workers' compensation were approximately 13.0%.
•The accident year combined ratio before catastrophe losses was 90.2%. The reported combined ratio was 98.7%.
•Catastrophes added 8.7 loss ratio points to the reported combined ratio, including 5.1 loss ratio points for COVID-19 related losses.
•Book value per share grew 7.7%, before dividends and share repurchases.
•Total capital returned to stockholders was $117 million, including $96 million of share repurchases and $21 million of ordinary dividends.
•Cash and liquid investments of more than $1.5 billion at the holding company.
The Company commented:
The second quarter of 2020 was most notably characterized by the COVID-19 pandemic and its impact on the U.S. and global economies. As previously announced, the Company incurred $85 million of net COVID-19 related losses during the period. The losses reflect newly available information and legal and regulatory developments that arose during the quarter. The total represents our best estimate of ultimate losses based on currently available information. Total catastrophe losses also included $20 million for losses related to civil unrest and $40 million primarily attributable to severe weather-related events in the U.S. Notwithstanding, inclusive of all these events, the Company reported a 98.7% combined ratio.
In spite of the current challenges, positive rate momentum persisted. The primary impetus for this continued momentum is the growing industry concern over the low interest rate environment and social inflation, which has shown no signs of abating. We believe that the current environment has heightened risk awareness and further reinforced this trend. Average rate increases excluding workers' compensation in the second quarter of 2020 of approximately 13% mitigated the top-line impact of the shrinking economy. Consequently, gross premiums written grew despite the current economic environment. While re-opening the global economy is unlikely to be a smooth process, we anticipate that it will have a meaningful favorable impact on our future growth.
Net investment income was adversely impacted by a $58 million loss from investment funds, which are reported on a one-quarter lag. The loss was driven by the first quarter downturn in the financial markets resulting from the COVID-19 related economic shutdown. We continue to manage our portfolio for total return in light of low interest rates and maintain a conservative fixed-maturity portfolio with an average rating of AA- and a duration of 2.4 years. Given the uncertainty in the financial markets and the economy, we have taken a defensive position to enhance our liquidity by investing in high-quality shorter-term assets, including cash and cash equivalents.
The first half of 2020 has been highly unusual in many regards. Our Company has performed relatively well and our people have demonstrated tremendous resiliency. Much remains unknown as we move into the second half of the year, yet often the best opportunities for the market to correct itself and provide an appropriate risk-adjusted return arise from periods of the greatest uncertainty. We see this as one of those moments, and we are well positioned to realize these opportunities as the economy improves.
W. R. Berkley Corporation 3
Webcast Conference Call
The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on July 21, 2020, at 5:00 p.m. eastern time. The conference call will be webcast live on the Company's website at https://ir.berkley.com/news-and-events/events-and-presentations/default.aspx. Please log on at least ten minutes early to register and download and install any necessary software. A replay of the webcast will be available on the Company's website approximately two hours after the end of the conference call. Additional financial information can be found on the Company's website at https://ir.berkley.com/investor-relations/financial-information/annual-reports/default.aspx.
About W. R. Berkley Corporation
Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty business: Insurance and Reinsurance & Monoline Excess.
W. R. Berkley Corporation 4
Forward Looking Information
This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2020 and beyond, are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the ongoing COVID-19 pandemic, including the related impact on the U.S. and global economies; the cyclical nature of the property casualty industry; the impact of significant competition, including new alternative entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts; natural and man-made catastrophic losses, including as a result of terrorist activities, epidemics or pandemics, such as COVID-19; the impact of climate change, which may increase the frequency and severity of catastrophe events; general economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response, on our results and financial condition; foreign currency and political risks (including those associated with the United Kingdom's withdrawal from the European Union, or "Brexit") relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2015; the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; potential difficulties with technology and/or cyber security issues; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2020 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
# # #
W. R. Berkley Corporation 5
Consolidated Financial Summary
(Amounts in thousands, except per share data)
| Second Quarter | Six Months | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Net premiums written | $ | 1,739,818 | $ | 1,743,464 | $ | 3,585,664 | $ | 3,453,065 | ||||||||||||||||||
| Change in unearned premiums | (62,903) | (96,623) | (217,331) | (213,368) | ||||||||||||||||||||||
| Net premiums earned | 1,676,915 | 1,646,841 | 3,368,333 | 3,239,697 | ||||||||||||||||||||||
| Net investment income | 85,431 | 188,333 | 260,194 | 346,587 | ||||||||||||||||||||||
| Net investment gains (losses): | ||||||||||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | 61,653 | 73,574 | (81,632) | 142,226 | ||||||||||||||||||||||
| Change in allowance for credit losses on investments (1) | 16,232 | — | (17,657) | — | ||||||||||||||||||||||
| Net investment gains (losses) | 77,885 | 73,574 | (99,289) | 142,226 | ||||||||||||||||||||||
| Revenues from non-insurance businesses | 75,742 | 89,297 | 169,471 | 181,124 | ||||||||||||||||||||||
| Insurance service fees | 19,870 | 22,446 | 45,621 | 47,759 | ||||||||||||||||||||||
| Other income | 183 | 2,893 | 2,305 | 3,013 | ||||||||||||||||||||||
| Total revenues | 1,936,026 | 2,023,384 | 3,746,635 | 3,960,406 | ||||||||||||||||||||||
| Expenses: | ||||||||||||||||||||||||||
| Losses and loss expenses | 1,135,126 | 1,028,830 | 2,242,379 | 2,017,479 | ||||||||||||||||||||||
| Other operating costs and expenses | 580,840 | 591,828 | 1,159,173 | 1,179,916 | ||||||||||||||||||||||
| Expenses from non-insurance businesses | 76,238 | 88,272 | 170,996 | 178,397 | ||||||||||||||||||||||
| Interest expense | 38,373 | 40,718 | 75,105 | 81,439 | ||||||||||||||||||||||
| Total expenses | 1,830,577 | 1,749,648 | 3,647,653 | 3,457,231 | ||||||||||||||||||||||
| Income before income taxes | 105,449 | 273,736 | 98,982 | 503,175 | ||||||||||||||||||||||
| Income tax expense | (33,793) | (56,309) | (30,852) | (104,134) | ||||||||||||||||||||||
| Net income before noncontrolling interests | 71,656 | 217,427 | 68,130 | 399,041 | ||||||||||||||||||||||
| Noncontrolling interests | (396) | (718) | (1,288) | (1,610) | ||||||||||||||||||||||
| Net income to common stockholders | $ | 71,260 | $ | 216,709 | $ | 66,842 | $ | 397,431 | ||||||||||||||||||
| Net income per share: | ||||||||||||||||||||||||||
| Basic | $ | 0.38 | $ | 1.14 | $ | 0.36 | $ | 2.09 | ||||||||||||||||||
| Diluted | $ | 0.38 | $ | 1.12 | $ | 0.35 | $ | 2.06 | ||||||||||||||||||
Average shares outstanding (2): | ||||||||||||||||||||||||||
| Basic | 185,979 | 190,512 | 188,133 | 190,456 | ||||||||||||||||||||||
| Diluted | 187,862 | 193,059 | 190,078 | 192,804 | ||||||||||||||||||||||
(1)The inclusion of the allowance for credit losses on investments commenced January 1, 2020 due to the adoption of ASU 2016-13.
(2)Basic shares outstanding consist of the weighted average number of common shares outstanding during the period (including shares held in a grantor trust). Diluted shares outstanding consist of the weighted average number of basic and common equivalent shares outstanding during the period.
W. R. Berkley Corporation 6
Business Segment Operating Results
(Amounts in thousands, except ratios) (1)
| Second Quarter | Six Months | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| Insurance: | ||||||||||||||||||||||||||
| Gross premiums written | $ | 1,917,702 | $ | 1,905,367 | $ | 3,859,511 | $ | 3,715,850 | ||||||||||||||||||
| Net premiums written | 1,543,157 | 1,574,585 | 3,126,475 | 3,071,964 | ||||||||||||||||||||||
| Premiums earned | 1,465,044 | 1,475,184 | 2,949,999 | 2,902,218 | ||||||||||||||||||||||
| Pre-tax income | 76,546 | 225,871 | 252,493 | 410,387 | ||||||||||||||||||||||
| Loss ratio | 67.0 | % | 62.9 | % | 66.1 | % | 62.5 | % | ||||||||||||||||||
| Expense ratio | 30.7 | % | 30.9 | % | 31.0 | % | 31.4 | % | ||||||||||||||||||
| GAAP combined ratio | 97.7 | % | 93.8 | % | 97.1 | % | 93.9 | % | ||||||||||||||||||
| Reinsurance & Monoline Excess: | ||||||||||||||||||||||||||
| Gross premiums written | $ | 214,544 | $ | 184,494 | $ | 504,107 | $ | 420,240 | ||||||||||||||||||
| Net premiums written | 196,661 | 168,879 | 459,189 | 381,101 | ||||||||||||||||||||||
| Premiums earned | 211,871 | 171,657 | 418,334 | 337,479 | ||||||||||||||||||||||
| Pre-tax income | 12,566 | 52,635 | 49,080 | 97,490 | ||||||||||||||||||||||
| Loss ratio | 72.2 | % | 59.2 | % | 70.3 | % | 60.0 | % | ||||||||||||||||||
| Expense ratio | 32.9 | % | 36.0 | % | 32.6 | % | 36.0 | % | ||||||||||||||||||
| GAAP combined ratio | 105.1 | % | 95.2 | % | 102.9 | % | 96.0 | % | ||||||||||||||||||
| Corporate and Eliminations: | ||||||||||||||||||||||||||
| Net investment gains (losses) | $ | 77,885 | $ | 73,574 | $ | (99,289) | $ | 142,226 | ||||||||||||||||||
| Interest expense | (38,373) | (40,718) | (75,105) | (81,439) | ||||||||||||||||||||||
| Other revenues and expenses | (23,175) | (37,626) | (28,197) | (65,489) | ||||||||||||||||||||||
| Pre-tax income (loss) | 16,337 | (4,770) | (202,591) | (4,702) | ||||||||||||||||||||||
| Consolidated: | ||||||||||||||||||||||||||
| Gross premiums written | $ | 2,132,246 | $ | 2,089,861 | $ | 4,363,618 | $ | 4,136,090 | ||||||||||||||||||
| Net premiums written | 1,739,818 | 1,743,464 | 3,585,664 | 3,453,065 | ||||||||||||||||||||||
| Premiums earned | 1,676,915 | 1,646,841 | 3,368,333 | 3,239,697 | ||||||||||||||||||||||
| Pre-tax income | 105,449 | 273,736 | 98,982 | 503,175 | ||||||||||||||||||||||
| Loss ratio | 67.7 | % | 62.4 | % | 66.6 | % | 62.2 | % | ||||||||||||||||||
| Expense ratio | 31.0 | % | 31.5 | % | 31.2 | % | 31.9 | % | ||||||||||||||||||
| GAAP combined ratio | 98.7 | % | 93.9 | % | 97.8 | % | 94.1 | % | ||||||||||||||||||
(1)Loss ratio is losses and loss expenses incurred expressed as a percentage of premiums earned. Expense ratio is underwriting expenses expressed as a percentage of premiums earned. GAAP combined ratio is the sum of the loss ratio and the expense ratio.
W. R. Berkley Corporation 7
Supplemental Information
(Amounts in thousands)
| Second Quarter | Six Months | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| Net premiums written: | ||||||||||||||||||||||||||
| Other liability | $ | 559,727 | $ | 546,861 | $ | 1,141,371 | $ | 1,053,811 | ||||||||||||||||||
| Short-tail lines (1) | 323,164 | 337,611 | 631,053 | 616,447 | ||||||||||||||||||||||
| Workers' compensation | 273,036 | 340,430 | 600,322 | 694,617 | ||||||||||||||||||||||
| Commercial automobile | 213,063 | 198,728 | 418,490 | 411,683 | ||||||||||||||||||||||
| Professional liability | 174,167 | 150,955 | 335,239 | 295,406 | ||||||||||||||||||||||
| Total Insurance | 1,543,157 | 1,574,585 | 3,126,475 | 3,071,964 | ||||||||||||||||||||||
| Casualty reinsurance | 132,927 | 106,690 | 276,388 | 211,206 | ||||||||||||||||||||||
| Monoline excess | 19,571 | 23,929 | 94,838 | 91,721 | ||||||||||||||||||||||
| Property reinsurance | 44,163 | 38,260 | 87,963 | 78,174 | ||||||||||||||||||||||
| Total Reinsurance & Monoline Excess | 196,661 | 168,879 | 459,189 | 381,101 | ||||||||||||||||||||||
| Total | $ | 1,739,818 | $ | 1,743,464 | $ | 3,585,664 | $ | 3,453,065 | ||||||||||||||||||
| Losses from catastrophes (including COVID-19 related losses): | ||||||||||||||||||||||||||
| Insurance | $ | 114,038 | $ | 25,446 | $ | 170,619 | $ | 38,064 | ||||||||||||||||||
| Reinsurance & Monoline Excess | 31,822 | 57 | 54,015 | 99 | ||||||||||||||||||||||
| Total | $ | 145,860 | $ | 25,503 | $ | 224,634 | $ | 38,163 | ||||||||||||||||||
| Net investment income: | ||||||||||||||||||||||||||
| Core portfolio (2) | $ | 111,679 | $ | 134,294 | $ | 244,727 | $ | 270,552 | ||||||||||||||||||
| Investment funds | (57,552) | 46,840 | (16,975) | 58,251 | ||||||||||||||||||||||
| Arbitrage trading account | 31,304 | 7,199 | 32,442 | 17,784 | ||||||||||||||||||||||
| Total | $ | 85,431 | $ | 188,333 | $ | 260,194 | $ | 346,587 | ||||||||||||||||||
| Net realized and unrealized gains (losses) on investments: | ||||||||||||||||||||||||||
| Net realized (losses) gains on investments | $ | (261) | $ | 4,156 | $ | 10,921 | $ | 30,730 | ||||||||||||||||||
| Change in unrealized gains (losses) on equity securities | 61,914 | 69,418 | (92,553) | 111,496 | ||||||||||||||||||||||
| Total | $ | 61,653 | $ | 73,574 | $ | (81,632) | $ | 142,226 | ||||||||||||||||||
| Other operating costs and expenses: | ||||||||||||||||||||||||||
| Policy acquisition and insurance operating expenses | $ | 519,234 | $ | 518,160 | $ | 1,051,158 | $ | 1,031,951 | ||||||||||||||||||
| Insurance service expenses | 20,423 | 25,386 | 42,995 | 51,343 | ||||||||||||||||||||||
| Net foreign currency (gains) losses | (7,382) | 470 | (28,923) | (6,494) | ||||||||||||||||||||||
| Other costs and expenses | 48,565 | 47,812 | 93,943 | 103,116 | ||||||||||||||||||||||
| Total | $ | 580,840 | $ | 591,828 | $ | 1,159,173 | $ | 1,179,916 | ||||||||||||||||||
| Cash flow from operations | $ | 427,282 | $ | 324,316 | $ | 579,851 | $ | 402,646 | ||||||||||||||||||
| Reconciliation of net income to operating income: | ||||||||||||||||||||||||||
| Net income | $ | 71,260 | $ | 216,709 | $ | 66,842 | $ | 397,431 | ||||||||||||||||||
| Pre-tax investment (gains) losses, net of related expenses | (77,785) | (73,375) | 99,807 | (139,245) | ||||||||||||||||||||||
| Income tax expense (benefit) | 18,077 | 15,464 | (22,585) | 29,587 | ||||||||||||||||||||||
| Operating income after-tax (3) | $ | 11,552 | $ | 158,798 | $ | 144,064 | $ | 287,773 | ||||||||||||||||||
(1)Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines.
(2)Core portfolio includes fixed maturity securities, equity securities, cash and cash equivalents, real estate and loans receivable.
(3)Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses). Net investment gains (losses) are computed net of related expenses, including performance-based compensatory costs associated with realized investment gains. Management believes this measurement provides a useful indicator of trends in the Company’s underlying operations.
W. R. Berkley Corporation 8
Selected Balance Sheet Information
(Amounts in thousands, except per share data)
| June 30, 2020 | December 31, 2019 | ||||||||||
| Net invested assets (1) | $ | 20,202,785 | $ | 19,856,776 | |||||||
| Total assets | 27,322,349 | 26,630,030 | |||||||||
| Reserves for losses and loss expenses | 13,088,904 | 12,583,249 | |||||||||
| Senior notes and other debt | 1,725,449 | 1,427,575 | |||||||||
| Subordinated debentures | 1,199,198 | 1,198,704 | |||||||||
| Common stockholders’ equity (2) | 5,801,116 | 6,074,939 | |||||||||
| Common stock outstanding (3) | 177,931 | 183,412 | |||||||||
| Book value per share (4) | 32.60 | 33.12 | |||||||||
| Tangible book value per share (4) | 31.33 | 31.87 | |||||||||
(1)Net invested assets include investments, cash and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases, net of related liabilities.
(2)As of June 30, 2020, reflected in common stockholders' equity are after-tax unrealized investment gains of $209 million and unrealized currency translation losses of $459 million. As of December 31, 2019, after-tax unrealized investment gains were $125 million and unrealized currency translation losses were $382 million.
(3)During the three months ended June 30, 2020, the Company repurchased 1,953,344 shares of its common stock for $96 million. During the six months ended June 30, 2020, the Company repurchased 5,604,103 shares of its common stock for $299 million. The number of shares of common stock outstanding excludes shares held in a grantor trust.
(4)Book value per share is total common stockholders’ equity divided by the number of common shares outstanding. Tangible book value per share is total common stockholders’ equity excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding.
W. R. Berkley Corporation 9
Investment Portfolio
June 30, 2020
(Amounts in thousands)
| Carrying Value | Percent of Total | |||||||||||||
| Fixed maturity securities: | ||||||||||||||
| United States government and government agencies | $ | 693,767 | 3.4 | % | ||||||||||
| State and municipal: | ||||||||||||||
| Special revenue | $ | 2,253,542 | 11.2 | % | ||||||||||
| Local general obligation | 441,919 | 2.2 | % | |||||||||||
| State general obligation | 421,765 | 2.1 | % | |||||||||||
| Pre-refunded | 325,431 | 1.6 | % | |||||||||||
| Corporate backed | 232,730 | 1.2 | % | |||||||||||
| Total state and municipal | 3,675,387 | 18.2 | % | |||||||||||
| Mortgage-backed securities: | ||||||||||||||
| Agency | 622,965 | 3.1 | % | |||||||||||
| Residential - Prime | 319,371 | 1.6 | % | |||||||||||
| Commercial | 217,558 | 1.1 | % | |||||||||||
| Residential - Alt A | 9,336 | — | % | |||||||||||
| Total mortgage-backed securities | 1,169,230 | 5.8 | % | |||||||||||
| Asset-backed securities | 3,098,198 | 15.3 | % | |||||||||||
| Corporate: | ||||||||||||||
| Industrial | 1,999,122 | 9.9 | % | |||||||||||
| Financial | 1,431,704 | 7.1 | % | |||||||||||
| Utilities | 322,715 | 1.6 | % | |||||||||||
| Other | 19,040 | 0.1 | % | |||||||||||
| Total corporate | 3,772,581 | 18.7 | % | |||||||||||
| Foreign government | 871,922 | 4.3 | % | |||||||||||
| Total fixed maturity securities (1) | 13,281,085 | 65.7 | % | |||||||||||
| Equity securities available for sale: | ||||||||||||||
| Preferred stocks | 245,297 | 1.2 | % | |||||||||||
| Common stocks | 116,968 | 0.6 | % | |||||||||||
| Total equity securities available for sale | 362,265 | 1.8 | % | |||||||||||
| Cash and cash equivalents (2) | 2,665,235 | 13.2 | % | |||||||||||
| Real estate | 2,072,772 | 10.3 | % | |||||||||||
| Investment funds (3) | 1,158,344 | 5.7 | % | |||||||||||
| Arbitrage trading account | 580,950 | 2.9 | % | |||||||||||
| Loans receivable | 82,134 | 0.4 | % | |||||||||||
| Net invested assets | $ | 20,202,785 | 100.0 | % | ||||||||||
(1)Total fixed maturity securities had an average rating of AA- and an average duration of 2.4 years, including cash and cash equivalents.
(2)Cash and cash equivalents includes trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.
(3)Investment funds are net of related liabilities of $0.9 million.