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1. Company Snapshot

1.a. Company Description

W.R.Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally.


It operates in two segments, Insurance and Reinsurance & Monoline Excess.The Insurance segment underwrites commercial insurance business, including premises operations, commercial automobile, property, products liability, and general and professional liability lines.It also provides workers' compensation insurance products; accident and health insurance and reinsurance products; insurance for commercial risks; specialty environmental products for contractors, consultants, and property owners and facilities operators; specialized insurance coverages for fine arts and jewelry exposures; umbrella and excess liability coverage products; and liquor liability and inland marine coverage for small to medium-sized insureds.


In addition, this segment offers directors and officers, and surety risk products, as well as products for technology, and life sciences and travel industries; cyber risk solutions; casualty, group life, and crime and fidelity related insurance products; personal lines insurance solutions, including home, condo/co-op, auto, and collectibles; automobile, law enforcement, public officials and educator's legal, and employment practices liability, as well as incidental medical insurance products; and at-risk and alternative risk insurance program management services.The Reinsurance & Monoline Excess segment provides other insurance companies and self-insureds with assistance in managing their net risk through reinsurance on a portfolio basis through treaty reinsurance or on an individual basis through facultative reinsurance.W.


R.Berkley Corporation was founded in 1967 and is based in Greenwich, Connecticut.

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1.b. Last Insights on WRB

W.R. Berkley's recent performance was negatively impacted by slowing growth, softening insurance market, and high valuation. Despite strong Q3 earnings, with net income up 12.6% YoY, growth concerns persist. Institutional investors, including America First Investment Advisors LLC and AXQ Capital LP, reduced their stakes by 6.7% and 75.1%, respectively. Conversely, Daiwa Securities Group Inc. increased its stake by 18.1%, and Caldwell Trust Co made a new investment. The company's dividend strategy, including a $1.00 special dividend, may support shareholder value.

1.c. Company Highlights

2. W.R. Berkley Corporation's Strong Q4 2025 Earnings

W.R. Berkley Corporation reported record quarterly operating earnings of $450 million, or $1.13 per share, with a 21.4% return on beginning of year equity. The company's net income was also $450 million, or $1.13 per share. Revenue growth was driven by continued rate improvement, lower catastrophe losses, and prudent expense management, with a record quarterly pretax underwriting income of $338 million, an improvement of 14.9% over the prior year. The actual EPS came in slightly below estimates of $1.14.

Publication Date: Feb -08

📋 Highlights
  • Record Operating Earnings:: Achieved $450M quarterly operating earnings ($1.13/share) with 21.4% ROE, matching net income figures.
  • Strong Underwriting Income:: Pretax underwriting income hit $338M, up 14.9% YoY, driven by rate improvements and lower losses.
  • Expense Efficiency:: Expense ratio improved to 28.2%, reflecting operational efficiencies and tech investments.
  • Capital Returns:: Generated $1B in quarterly operating cash flow ($3.6B annual) with plans for shareholder returns via buybacks/dividends.
  • Technology Investments:: Committed to AI/data investments in 2026-2027, aiming for scalability and value creation beyond cost savings.

Underwriting Performance

The company's underwriting performance was strong, with a record quarterly pretax underwriting income of $338 million. The expense ratio improved to 28.2%, driven by operational efficiencies and investments in technology. According to Rob Berkley, "the company is well-positioned to adapt to changes, with its scale, agility, and ability to experiment and innovate through 60 different incubators."

Business Outlook

The company's top-line growth was disappointing in October and November but showed encouraging signs in December, with a 7% increase in gross written premium. Rob Berkley cautioned against reading too much into the quarter's results, suggesting that the company is not feeling the same level of pressure to push for rate increases as in previous years. Analysts estimate next year's revenue growth at 4.8%.

Valuation

With a Price-to-Book Ratio (P/B) not available and a Return on Equity (ROE) of 25.41%, the company's valuation appears reasonable. The Dividend Yield is 2.63%, indicating a relatively stable return for shareholders. The company's strong underwriting performance is reflected in its Combined Ratio, although the exact figure is not provided.

Investment Portfolio

The company's investment portfolio remains strong, with a credit quality of AA- and a duration of around 4 years. Rob Berkley highlighted the company's ability to generate strong returns and its surplus of capital, which it can utilize in various ways, including returning excess capital to shareholders.

3. NewsRoom

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W. R. Berkley Corporation (WRB) Presents at Bank of America Financial Services Conference 2026 Transcript

Feb -11

Source: seekingalpha.com

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W. R. Berkley Corporation (WRB) Presents at UBS Financial Services Conference 2026 Transcript

Feb -10

Source: seekingalpha.com

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Jefferies Group Exits Vanguard Information Technology ETF, Impacting Portfolio by -8.06%

Feb -09

Source: gurufocus.com

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Five US Stocks See Over $185M in Insider Buying, with Soho House and WR Berkley Leading the Pack

Feb -09

Source: 247wallst.com

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Contrasting W.R. Berkley (NYSE:WRB) & First American Financial (NYSE:FAF)

Feb -09

Source: defenseworld.net

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Fairholme Focused Income Fund's Strategic Move: Significant Addition of CF Industries Holdings Inc

Feb -06

Source: gurufocus.com

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Sumitomo Insurance Co Mitsui Purchases 25,000 Shares of W.R. Berkley (NYSE:WRB) Stock

Feb -06

Source: defenseworld.net

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Sumitomo Insurance Co Mitsui Acquires 40,000 Shares of W.R. Berkley (NYSE:WRB) Stock

Feb -06

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.81%)

6. Segments

Insurance

Expected Growth: 4.78%

W.R. Berkley Corporation's 4.78% growth in insurance is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on underwriting discipline, risk management, and investment income also contribute to its growth. Furthermore, a strong capital position and effective cost management enable the company to invest in digital capabilities, enhancing its competitiveness.

Reinsurance & Monoline Excess

Expected Growth: 5.0%

W. R. Berkley Corporation's Reinsurance & Monoline Excess segment growth of 5.0% is driven by increasing demand for specialty insurance products, expansion into new markets, and strategic underwriting initiatives. Additionally, the company's strong capital position and disciplined risk management practices enable it to capitalize on profitable growth opportunities.

Corporate, Other and Eliminations

Expected Growth: 4.78%

Corporate segment growth driven by effective capital allocation and investment returns. Other segment growth fueled by expansion of fee-based services and strategic acquisitions. Eliminations growth attributed to increased intersegment transactions and reinsurance agreements, contributing to W. R. Berkley Corporation's overall 4.78% growth.

Reconciling Items

Expected Growth: 4.78%

W.R. Berkley's 4.78% growth is driven by a combination of factors, including a strong underwriting discipline, favorable reserve development, and a diversified portfolio of specialty insurance products. Additionally, the company's strategic investments in technology and data analytics have improved operational efficiency, enabling it to capitalize on emerging market opportunities.

7. Detailed Products

Commercial Insurance

W. R. Berkley Corporation offers a range of commercial insurance products, including property, casualty, and specialty insurance, to businesses of all sizes.

Professional Liability Insurance

The company provides professional liability insurance to professionals, such as doctors, lawyers, and accountants, to protect them from malpractice claims.

Workers' Compensation Insurance

W. R. Berkley Corporation offers workers' compensation insurance to employers to provide wage replacement and medical benefits to employees injured on the job.

Reinsurance

The company provides reinsurance to other insurance companies, helping them to manage their risk and increase their capacity to write new business.

Specialty Insurance

W. R. Berkley Corporation offers specialty insurance products, such as aviation, marine, and energy insurance, to businesses and individuals with unique risk exposures.

Personal Insurance

The company offers personal insurance products, including homeowners, auto, and umbrella insurance, to individuals and families.

8. W. R. Berkley Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for W. R. Berkley Corporation is moderate due to the presence of alternative insurance providers and financial institutions that offer similar products and services.

Bargaining Power Of Customers

The bargaining power of customers is low for W. R. Berkley Corporation as the company operates in a niche market with limited customer concentration, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for W. R. Berkley Corporation as the company relies on a diverse range of suppliers for its operations, but has some flexibility to negotiate prices and terms.

Threat Of New Entrants

The threat of new entrants is low for W. R. Berkley Corporation due to the high barriers to entry in the insurance industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high for W. R. Berkley Corporation due to the competitive nature of the insurance industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.92%
Debt Cost 5.29%
Equity Weight 72.08%
Equity Cost 6.92%
WACC 6.47%
Leverage 38.73%

11. Quality Control: W. R. Berkley Corporation passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
WR Berkley

A-Score: 7.2/10

Value: 6.0

Growth: 7.9

Quality: 6.4

Yield: 5.0

Momentum: 8.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
CNA Financial

A-Score: 7.0/10

Value: 7.6

Growth: 4.6

Quality: 5.6

Yield: 10.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Mercury General

A-Score: 6.7/10

Value: 6.9

Growth: 6.8

Quality: 6.7

Yield: 5.0

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
RLI

A-Score: 6.6/10

Value: 5.5

Growth: 6.9

Quality: 8.4

Yield: 8.0

Momentum: 1.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Markel

A-Score: 6.4/10

Value: 6.7

Growth: 7.2

Quality: 6.8

Yield: 0.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
Loews

A-Score: 6.1/10

Value: 6.3

Growth: 6.7

Quality: 5.3

Yield: 0.0

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

71.54$

Current Price

71.54$

Potential

-0.00%

Expected Cash-Flows