Item 15. (b) EXHIBITS
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Item 15. (b) EXHIBITS
| Number | |
| (3.1) | The Company’s Restated Certificate of Incorporation, as amended through May 10, 2004 (incorporated by reference to Exhibits 3.1 and 3.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on August 6, 2003). |
| (3.2) | Amendment, dated May 11, 2004, to the Company’s Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.2 of the Company’s Quarterly report on Form 10-Q (File No. 1-15202) filed with the Commission on August 5, 2004). |
| (3.3) | Amendment, dated May 16, 2006, to the Company’s Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on May 17, 2006). |
| (3.4) | Amended and Restated By-Laws (incorporated by reference to Exhibit 3 (ii) of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on August 5, 2015). |
| (4.1) | Indenture, dated as of February 14, 2003, between the Company and The Bank of New York, as trustee (incorporated by reference to Exhibit 4.1 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission of March 31, 2003). |
| (4.2) | Third Supplemental Indenture, dated as of August 24, 2004, between the Company and The Bank of New York, as Trustee, relating to $150,000,000 principal amount of the Company’s 6.150% Senior Notes due 2019, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.4 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on March 14, 2005). |
| (4.3) | Fifth Supplemental Indenture, dated as of February 9, 2007, between the Company and The Bank of New York, as Trustee, relating to $250,000,000 principal amount of the Company’s 6.25% Senior Notes due 2037, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.7 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on March 1, 2007). |
| (4.4) | Sixth Supplemental Indenture, dated as of September 14, 2009, between the Company and The Bank of New York Mellon, as Trustee, relating to $300,000,000 principal amount of the Company’s 7.375% Senior Notes due 2019, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.7 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on February 26, 2010). |
| (4.5) | Seventh Supplemental Indenture, dated as of September 16, 2010, between the Company and The Bank of New York Mellon, as Trustee, relating to $300,000,000 principal amount of the Company’s 5.375% Senior Notes due 2020, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on September 16, 2010). |
| (4.6) | Eighth Supplemental Indenture, dated as of March 16, 2012, between the Company and The Bank of New York Mellon, as Trustee, relating to $350,000,000 principal amount of the Company’s 4.625% Senior Notes due 2022, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on March 16, 2012). |
| (4.7) | Ninth Supplemental Indenture, dated as of August 6, 2014, between the Company and The Bank of New York Mellon, as Trustee, relating to $350,000,000 principal amount of the Company’s 4.75% Senior Notes due 2044, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on August 6, 2014). |
| (4.8) | Subordinated Indenture, dated as of May 2, 2013, between the Company and The Bank of New York Mellon, as Trustee (incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on May 2, 2013). |
| (4.90) | First Supplemental Indenture, dated as of May 2, 2013, between the Company and The Bank of New York Mellon, as Trustee, relating to $350,000,000 principal amount of the Company's 5.625% Subordinated Debentures due 2053, including the form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on May 2, 2013). |
| (4.10) | The instruments defining the rights of holders of the other long term debt securities of the Company are omitted pursuant to Section (b)(4)(iii)(A) of Item 601 of Regulation S-K. The Company agrees to furnish supplementally copies of these instruments to the Commission upon request. |
| (10.1) | W. R. Berkley Corporation 2003 Stock Incentive Plan (incorporated by reference to Annex A of the Company’s 2003 Proxy Statement (File No. 1-15202) filed with the Commission on April 14, 2003). |
| (10.2) | W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Annex A of the Company’s 2015 Proxy Statement (File No. 1-15202) filed with the Commission on April 20, 2015). |
| (10.3) | Form of 2014 Performance-Based Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 7, 2014). |
| (10.4) | Form of 2015 Performance-Based Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 9, 2015). |
| (10.5) | Form of Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 8, 2012). |
| (10.6) | Form of Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2003 Stock Incentive Plan (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on May 3, 2005). |
| (10.7) | Form of Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2003 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on August 6, 2010). |
| (10.8) | Form of Restricted Stock Unit Agreement for grant of April 4, 2003 (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on August 6, 2003). |
| (10.9) | W. R. Berkley Corporation Deferred Compensation Plan for Officers as amended and restated effective December 3, 2007 (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on December 19, 2007). |
| (10.10) | W. R. Berkley Corporation Deferred Compensation Plan for Directors as amended and restated effective December 3, 2007 (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on December 19, 2007). |
| (10.11) | W. R. Berkley Corporation 2007 Annual Incentive Compensation Plan (incorporated by reference to Annex A of the Company’s 2006 Proxy Statement (File No. 1-15202) filed with the Commission on April 18, 2006). |
| (10.12) | W. R. Berkley Corporation 2009 Long-Term Incentive Plan (incorporated by reference to Annex A of the Company’s 2009 Proxy Statement (File No. 1-15202) filed with the Commission on April 17, 2009). |
| (10.13) | Form of 2011 Performance Unit Award Agreement under the W. R. Berkley Corporation 2009 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.12 of the Company's Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on February 28, 2012). |
| (10.14) | W. R. Berkley Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Annex A of the Company’s 2014 Proxy Statement (File No. 1-15202) filed with the Commission on April 7, 2014). |
| (10.15) | Form of 2014 Performance Unit Award Agreement under the W. R. Berkley Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on May 12, 2014). |
| (10.16) | Form of 2015 Performance Unit Award Agreement under the W. R. Berkley Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on May 4, 2015). |
| (10.17) | W. R. Berkley Corporation 2009 Directors Stock Plan (incorporated by reference to Annex B of the Company’s 2015 Proxy Statement (File No. 1-15202) filed with the Commission on April 20, 2015). |
| (10.18) | Supplemental Benefits Agreement between William R. Berkley and the Company as amended and restated as of December 21, 2011 (incorporated by reference to Exhibit 10.14 of the Company's Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on February 28, 2012). |
| (10.19) | Form of Dividend Equivalent Rights Award Agreement Under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on August 7, 2015). |
| (14) | Code of Ethics for Senior Financial Officers (incorporated by reference to Exhibit 14 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on March 14, 2005). |
| (21) | Following is a list of the Company’s significant subsidiaries and other operating entities. Subsidiaries of subsidiaries are indented and the parent of each such corporation owns 100% of the outstanding voting securities of such corporation except as noted below. |
| Jurisdiction of Incorporation | Percentage owned by the Company (1) | ||
| Berkley International, LLC (2) | New York | 100 | % |
| Queen's Island Insurance Company, Ltd. | Bermuda | 100 | % |
| Signet Star Holdings, Inc. | Delaware | 100 | % |
| Berkley Insurance Company | Delaware | 100 | % |
| Admiral Insurance Company | Delaware | 100 | % |
| Admiral Indemnity Company | Delaware | 100 | % |
| Carolina Casualty Insurance Company | Iowa | 100 | % |
| Clermont Insurance Company | Iowa | 100 | % |
| Nautilus Insurance Company | Arizona | 100 | % |
| Berkley Assurance Company | Iowa | 100 | % |
| Berkley Life and Health Insurance Company | Iowa | 100 | % |
| Berkley London Holdings, Inc. | Delaware | 100 | % |
| W. R. Berkley London Holdings, Limited | United Kingdom | 100 | % |
| W. R. Berkley Insurance (Europe), Limited | United Kingdom | 100 | % |
| W. R. Berkley Europe AG | Liechtenstein | 100 | % |
| Berkley National Insurance Company | Iowa | 100 | % |
| Berkley Regional Insurance Company | Delaware | 100 | % |
| Acadia Insurance Company | New Hampshire | 100 | % |
| American Mining Insurance Company | Iowa | 100 | % |
| Berkley Regional Specialty Insurance Company | Delaware | 100 | % |
| Continental Western Insurance Company | Iowa | 100 | % |
| Firemen’s Insurance Company of Washington, D.C. | Delaware | 100 | % |
| Tri-State Insurance Company of Minnesota | Iowa | 100 | % |
| Union Insurance Company | Iowa | 100 | % |
| Gemini Insurance Company | Delaware | 100 | % |
| Great Divide Insurance Company | North Dakota | 100 | % |
| Key Risk Insurance Company | North Carolina | 100 | % |
| Midwest Employers Casualty Company | Delaware | 100 | % |
| Preferred Employers Casualty Company | California | 100 | % |
| Riverport Insurance Company | Iowa | 100 | % |
| StarNet Insurance Company | Delaware | 100 | % |
| (1) | W. R. Berkley Corporation is the ultimate parent. The subsidiary of a direct parent is indicated by an indentation, and its percentage ownership is as indicated in this column. |
| (2) | Berkley International, LLC is held by W. R. Berkley Corporation and its subsidiaries as follows: W. R. Berkley Corporation (2%), Berkley Regional Insurance Company (14%) and Berkley Insurance Company (84%). |
| (23) | Consent of Independent Registered Public Accounting Firm. | |
| (31.1) | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a). | |
| (31.2) | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/ 15d-14(a). | |
| (32.1) | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholders
W. R. Berkley Corporation:
Under date of February 22, 2016, we reported on the consolidated balance sheets of W. R. Berkley Corporation and subsidiaries as of December 31, 2015 and 2014, and the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for each of the years in the three-year period ended December 31, 2015, which are included in the Annual Report on Form 10-K for the year ended December 31, 2015. In connection with our audits of the aforementioned consolidated financial statements, we also audited the related consolidated financial statement schedules II through VI. These financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statement schedules based on our audits.
In our opinion, such financial statement schedules, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.
/S/ KPMG LLP
New York, New York
February 22, 2016
Schedule II
W. R. Berkley Corporation
Condensed Financial Information of Registrant
Balance Sheets (Parent Company)
| December 31, | |||||||
| (In thousands) | 2015 | 2014 | |||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 195,658 | $ | 90,693 | |||
| Fixed maturity securities available for sale at fair value (cost $201,256 and $272,283 at December 31, 2015 and 2014, respectively) | 201,738 | 273,773 | |||||
| Equity securities available for sale, at fair value (cost $3,430 in 2015 and $3,738 in 2014) | 3,430 | 3,738 | |||||
| Investment in subsidiaries | 6,454,065 | 6,693,731 | |||||
| Deferred Federal income taxes | 37,135 | — | |||||
| Current Federal income taxes | 51,512 | 62,882 | |||||
| Property, furniture and equipment at cost, less accumulated depreciation | 13,150 | 9,852 | |||||
| Other assets | 6,153 | 6,978 | |||||
| Total assets | $ | 6,962,841 | $ | 7,141,647 | |||
| Liabilities and stockholders’ equity | |||||||
| Liabilities: | |||||||
| Due to subsidiaries | $ | 143,669 | $ | 87,540 | |||
| Other liabilities | 115,737 | 162,648 | |||||
| Deferred Federal income taxes | — | 149 | |||||
| Subordinated debentures | 340,320 | 340,060 | |||||
| Senior notes | 1,762,869 | 1,961,305 | |||||
| Total liabilities | 2,362,595 | 2,551,702 | |||||
| Stockholders’ equity: | |||||||
| Preferred stock | — | — | |||||
| Common stock | 47,024 | 47,024 | |||||
| Additional paid-in capital | 1,005,455 | 991,512 | |||||
| Retained earnings (including accumulated undistributed net income of subsidiaries of $4,746,934 and $4,700,821 at December 31, 2015 and 2014, respectively) | 6,178,070 | 5,732,410 | |||||
| Accumulated other comprehensive income (loss) | (66,698 | ) | 183,550 | ||||
| Treasury stock, at cost | (2,563,605 | ) | (2,364,551 | ) | |||
| Total stockholders’ equity | 4,600,246 | 4,589,945 | |||||
| Total liabilities and stockholders’ equity | $ | 6,962,841 | $ | 7,141,647 |
See accompanying Report of Independent Registered Public Accounting Firm and note to condensed financial statements.
Schedule II, Continued
W. R. Berkley Corporation
Condensed Financial Information of Registrant, Continued
Statements of Income (Parent Company)
| Years Ended December 31, | |||||||||||
| (In thousands) | 2015 | 2014 | 2013 | ||||||||
| Management fees and investment income including dividends from subsidiaries of $642,421, $503,483, and $269,626 for the years ended December 31, 2015, 2014 and 2013, respectively | $ | 655,318 | $ | 515,775 | $ | 277,223 | |||||
| Net investment gains | 696 | 5,487 | 24,550 | ||||||||
| Other income | 348 | 450 | 223 | ||||||||
| Total revenues | 656,362 | 521,712 | 301,996 | ||||||||
| Operating costs and expense | 143,391 | 148,288 | 122,562 | ||||||||
| Interest expense | 128,248 | 125,352 | 120,066 | ||||||||
| Income before federal income taxes | 384,723 | 248,072 | 59,368 | ||||||||
| Federal income taxes: | |||||||||||
| Federal income taxes provided by subsidiaries on a separate return basis | 272,180 | 366,721 | 225,845 | ||||||||
| Federal income tax expense on a consolidated return basis | (199,322 | ) | (273,310 | ) | (154,928 | ) | |||||
| Net expense | 72,858 | 93,411 | 70,917 | ||||||||
| Income before undistributed equity in net income of subsidiaries | 457,581 | 341,483 | 130,285 | ||||||||
| Equity in undistributed net income of subsidiaries | 46,113 | 307,401 | 369,640 | ||||||||
| Net income | $ | 503,694 | $ | 648,884 | $ | 499,925 |
See accompanying Report of Independent Registered Public Accounting Firm and note to condensed financial statements.
Schedule II, Continued
W. R. Berkley Corporation
Condensed Financial Information of Registrant, Continued
Statements of Cash Flows (Parent Company)
| Years Ended December 31, | |||||||||||
| (In thousands) | 2015 | 2014 | 2013 | ||||||||
| Cash flows from (used in) from operating activities: | |||||||||||
| Net income | $ | 503,694 | $ | 648,884 | $ | 499,925 | |||||
| Adjustments to reconcile net income to net cash from operating activities: | |||||||||||
| Net investment gains | (696 | ) | (5,487 | ) | (24,550 | ) | |||||
| Depreciation and amortization | 2,693 | 2,916 | 10,397 | ||||||||
| Equity in undistributed earnings of subsidiaries | (46,113 | ) | (307,401 | ) | (369,640 | ) | |||||
| Tax payments received from subsidiaries | 311,482 | 462,809 | 77,305 | ||||||||
| Federal income taxes provided by subsidiaries on a separate return basis | (272,180 | ) | (366,721 | ) | (225,845 | ) | |||||
| Stock incentive plans | 29,725 | 28,068 | 23,784 | ||||||||
| Change in: | |||||||||||
| Federal income taxes | 51,772 | (15,239 | ) | 21,866 | |||||||
| Other assets | 301 | (364 | ) | (821 | ) | ||||||
| Other liabilities | (92,752 | ) | (39,780 | ) | (15,470 | ) | |||||
| Accrued investment income | 524 | (820 | ) | 967 | |||||||
| Net cash from (used in) operating activities | 488,450 | 406,865 | (2,082 | ) | |||||||
| Cash from (used in) investing activities: | |||||||||||
| Proceeds from sales of fixed maturity securities | 380,986 | 289,683 | 230,854 | ||||||||
| Proceeds from maturities and prepayments of fixed maturity securities | 123,639 | 103,646 | 68,918 | ||||||||
| Proceeds from sales of equity securities | 308 | 7,356 | 23,395 | ||||||||
| Cost of purchases of fixed maturity securities | (432,645 | ) | (605,768 | ) | (79,132 | ) | |||||
| Cost of purchases of equity securities | — | — | (4,668 | ) | |||||||
| Cost of acquired companies | — | (82,879 | ) | — | |||||||
| Investments in and advances to subsidiaries, net | 30,338 | 34,191 | (58,454 | ) | |||||||
| Change in balance due to security broker | — | (2,151 | ) | 6,918 | |||||||
| Net additions to real estate, furniture & equipment | (4,425 | ) | (1,615 | ) | (1,896 | ) | |||||
| Net cash from (used in) investing activities | 98,201 | (257,537 | ) | 185,935 | |||||||
| Cash from (used in) financing activities: | |||||||||||
| Net proceeds from issuance of senior notes | — | 344,472 | 339,627 | ||||||||
| Net proceeds from stock options exercised | — | — | 53 | ||||||||
| Repayment of senior notes | (200,000 | ) | — | (450,000 | ) | ||||||
| Purchase of common treasury shares | (223,652 | ) | (238,933 | ) | (166,473 | ) | |||||
| Cash dividends to common stockholders | (58,034 | ) | (181,489 | ) | (52,717 | ) | |||||
| Net cash from (used in) financing activities | (481,686 | ) | (75,950 | ) | (329,510 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 104,965 | 73,378 | (145,657 | ) | |||||||
| Cash and cash equivalents at beginning of year | 90,693 | 17,315 | 162,972 | ||||||||
| Cash and cash equivalents at end of year | $ | 195,658 | $ | 90,693 | $ | 17,315 |
See accompanying Report of Independent Registered Public Accounting Firm and note to condensed financial statements.
W. R. Berkley Corporation
Condensed Financial Information of Registrant,Continued
December 31, 2015
Note to Condensed Financial Statements (Parent Company)
The accompanying condensed financial statements should be read in conjunction with the notes to consolidated financial statements included elsewhere herein. Reclassifications have been made in the 2014 and 2013 financial statements as originally reported to conform them to the presentation of the 2015 financial statements.
The Company files a consolidated federal 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.
Schedule III
W. R. Berkley Corporation and Subsidiaries
Supplementary Insurance Information
December 31, 2015, 2014 and 2013
| (In thousands) | Deferred Policy Acquisition Cost | Reserve for Losses and Loss Expenses | Unearned Premiums | Net Premiums Earned | Net Investment Income | Loss and Loss Expenses | Amortization of Deferred Policy Acquisition Cost | Other Operating Cost and Expenses | Net Premiums Written | ||||||||||||||||||||||||||
| December 31, 2015 | |||||||||||||||||||||||||||||||||||
| Insurance-Domestic | $ | 367,977 | $ | 8,450,190 | $ | 2,529,931 | $ | 4,659,359 | $ | 358,935 | $ | 2,851,136 | $ | 760,020 | $ | 778,957 | $ | 4,812,830 | |||||||||||||||||
| Insurance-International | 62,687 | 798,116 | 324,530 | 772,141 | 51,522 | 449,147 | 169,962 | 152,629 | 778,567 | ||||||||||||||||||||||||||
| Reinsurance-Global | 82,464 | 1,420,844 | 282,672 | 609,109 | 74,226 | 355,987 | 172,510 | 59,986 | 598,118 | ||||||||||||||||||||||||||
| Corporate and adjustments | — | — | — | — | 27,962 | — | — | 195,686 | — | ||||||||||||||||||||||||||
| Total | $ | 513,128 | $ | 10,669,150 | $ | 3,137,133 | $ | 6,040,609 | $ | 512,645 | $ | 3,656,270 | $ | 1,102,492 | $ | 1,187,258 | $ | 6,189,515 | |||||||||||||||||
| December 31, 2014 | |||||||||||||||||||||||||||||||||||
| Insurance-Domestic | $ | 347,261 | $ | 8,000,863 | $ | 2,384,511 | $ | 4,271,933 | $ | 428,632 | $ | 2,571,010 | $ | 710,141 | $ | 729,958 | $ | 4,517,587 | |||||||||||||||||
| Insurance-International | 60,900 | 855,852 | 342,746 | 802,375 | 55,407 | 503,997 | 173,877 | 150,129 | 828,076 | ||||||||||||||||||||||||||
| Reinsurance-Global | 80,364 | 1,512,986 | 299,475 | 670,110 | 88,821 | 415,560 | 169,379 | 58,315 | 651,284 | ||||||||||||||||||||||||||
| Corporate and adjustments | — | — | — | — | 28,025 | — | — | 165,657 | — | ||||||||||||||||||||||||||
| Total | $ | 488,525 | $ | 10,369,701 | $ | 3,026,732 | $ | 5,744,418 | $ | 600,885 | $ | 3,490,567 | $ | 1,053,397 | $ | 1,104,059 | $ | 5,996,947 | |||||||||||||||||
| December 31, 2013 | |||||||||||||||||||||||||||||||||||
| Insurance-Domestic | $ | 306,464 | $ | 7,715,124 | $ | 2,107,768 | $ | 3,782,416 | $ | 404,280 | $ | 2,318,541 | $ | 651,524 | $ | 671,096 | $ | 3,994,387 | |||||||||||||||||
| Insurance-International | 60,751 | 672,009 | 317,691 | 723,151 | 47,039 | 429,900 | 152,843 | 124,497 | 756,185 | ||||||||||||||||||||||||||
| Reinsurance-Global | 84,886 | 1,693,808 | 355,978 | 720,970 | 89,090 | 448,583 | 186,703 | 64,567 | 749,601 | ||||||||||||||||||||||||||
| Corporate and adjustments | — | — | — | — | 3,882 | — | — | 149,454 | — | ||||||||||||||||||||||||||
| Total | $ | 452,101 | $ | 10,080,941 | $ | 2,781,437 | $ | 5,226,537 | $ | 544,291 | $ | 3,197,024 | $ | 991,070 | $ | 1,009,614 | $ | 5,500,173 |
See accompanying Report of Independent Registered Public Accounting Firm.
Schedule IV
W. R. Berkley Corporation and Subsidiaries
Reinsurance
Years ended December 31, 2015, 2014 and 2013
| Premiums Written | ||||||||||||||||||
| (In thousands, other than percentages) | Direct Amount | Ceded to Other Companies | Assumed from Other Companies | Net Amount | Percentage of Amount Assumed to Net | |||||||||||||
| Year ended December 31, 2015: | ||||||||||||||||||
| Insurance-Domestic | $ | 5,521,447 | $ | 871,358 | $ | 162,741 | $ | 4,812,830 | 3.4 | % | ||||||||
| Insurance-International | 874,359 | 144,737 | 48,945 | 778,567 | 6.3 | % | ||||||||||||
| Reinsurance-Global | 16,727 | 44,383 | 625,774 | 598,118 | 104.6 | % | ||||||||||||
| Total | $ | 6,412,533 | $ | 1,060,478 | $ | 837,460 | $ | 6,189,515 | 13.5 | % | ||||||||
| Year ended December 31, 2014: | ||||||||||||||||||
| Insurance-Domestic | $ | 5,214,849 | $ | 866,092 | $ | 168,830 | $ | 4,517,587 | 3.7 | % | ||||||||
| Insurance-International | 927,799 | 156,195 | 56,472 | 828,076 | 6.8 | % | ||||||||||||
| Reinsurance-Global | 42,594 | 43,604 | 652,294 | 651,284 | 100.2 | % | ||||||||||||
| Total | $ | 6,185,242 | $ | 1,065,891 | $ | 877,596 | $ | 5,996,947 | 14.6 | % | ||||||||
| Year ended December 31, 2013: | ||||||||||||||||||
| Insurance-Domestic | $ | 4,699,348 | $ | 809,368 | $ | 104,407 | $ | 3,994,387 | 2.6 | % | ||||||||
| Insurance-International | 887,027 | 142,591 | 11,749 | 756,185 | 1.6 | % | ||||||||||||
| Reinsurance-Global | 39,797 | 58,959 | 768,763 | 749,601 | 102.6 | % | ||||||||||||
| Total | $ | 5,626,172 | $ | 1,010,918 | $ | 884,919 | $ | 5,500,173 | 16.1 | % |
See accompanying Report of Independent Registered Public Accounting Firm.
Schedule V
W. R. Berkley Corporation and Subsidiaries
Valuation and Qualifying Accounts
Years ended December 31, 2015, 2014 and 2013
| (In thousands) | Opening Balance | Additions- Charged to Expense | Deduction- Amounts Written Off | Ending Balance | |||||||||||
| Year ended December 31, 2015: | |||||||||||||||
| Premiums and fees receivable | $ | 21,446 | $ | 6,281 | $ | (5,203 | ) | $ | 22,524 | ||||||
| Due from reinsurers | 1,144 | (24 | ) | (100 | ) | 1,020 | |||||||||
| Deferred federal and foreign income taxes | 1,335 | 2,702 | — | 4,037 | |||||||||||
| Loan loss reserves | 2,486 | (392 | ) | — | 2,094 | ||||||||||
| Total | $ | 26,411 | $ | 8,567 | $ | (5,303 | ) | $ | 29,675 | ||||||
| Year ended December 31, 2014: | |||||||||||||||
| Premiums and fees receivable | $ | 20,951 | $ | 5,944 | $ | (5,449 | ) | $ | 21,446 | ||||||
| Due from reinsurers | 1,385 | 301 | (542 | ) | 1,144 | ||||||||||
| Deferred federal and foreign income taxes | — | 1,335 | — | 1,335 | |||||||||||
| Loan loss reserves | 2,087 | 399 | — | 2,486 | |||||||||||
| Total | $ | 24,423 | $ | 7,979 | $ | (5,991 | ) | $ | 26,411 | ||||||
| Year ended December 31, 2013: | |||||||||||||||
| Premiums and fees receivable | $ | 22,919 | $ | 3,133 | $ | (5,101 | ) | $ | 20,951 | ||||||
| Due from reinsurers | 1,680 | 186 | (481 | ) | 1,385 | ||||||||||
| Loan loss reserves | 5,620 | 308 | (3,841 | ) | 2,087 | ||||||||||
| Total | $ | 30,219 | $ | 3,627 | $ | (9,423 | ) | $ | 24,423 |
See accompanying Report of Independent Registered Public Accounting Firm.
Schedule VI
W. R. Berkley Corporation and Subsidiaries
Supplementary Information Concerning Property-Casualty Insurance Operations
Years Ended December 31, 2015, 2014 and 2013
| (In thousands) | 2015 | 2014 | 2013 | ||||||||
| Deferred policy acquisition costs | $ | 513,128 | $ | 488,525 | $ | 452,101 | |||||
| Reserves for losses and loss expenses | 10,669,150 | 10,369,701 | 10,080,941 | ||||||||
| Unearned premium | 3,137,133 | 3,026,732 | 2,781,437 | ||||||||
| Net premiums earned | 6,040,609 | 5,744,418 | 5,226,537 | ||||||||
| Net investment income | 512,645 | 600,885 | 544,291 | ||||||||
| Losses and loss expenses incurred: | |||||||||||
| Current year | 3,653,561 | 3,495,825 | 3,221,393 | ||||||||
| Prior years | (46,713 | ) | (75,764 | ) | (78,810 | ) | |||||
| Loss reserve discount accretion | 49,422 | 70,506 | 54,441 | ||||||||
| Amortization of deferred policy acquisition costs | 1,102,492 | 1,053,397 | 991,070 | ||||||||
| Paid losses and loss expenses | 3,257,015 | 3,115,227 | 2,878,071 | ||||||||
| Net premiums written | 6,189,515 | 5,996,947 | 5,500,173 |
See accompanying Report of Independent Registered Public Accounting Firm.
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