Joshua Shanker, an analyst from Bank of America Securities, reiterated the Hold rating on W. R. Berkley Corporation. The associated price target was lowered to $74.00.
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Joshua Shanker has given his Hold rating due to a combination of factors impacting W. R. Berkley Corporation’s recent performance. The company’s third-quarter earnings per share (EPS) slightly missed expectations, coming in at $1.10 compared to the anticipated $1.11. This shortfall was influenced by higher catastrophe losses and lower income from alternative investments, which offset the benefits of reduced non-underwriting operating expenses.
Additionally, the company’s insurance segment underperformed in terms of net premium written growth, which was below estimates due to increased competition in certain lines. While the reinsurance segment showed healthier growth, the overall underwriting ratios were slightly higher than forecasted, indicating increased expenses and losses. These factors, combined with a limited upside to the price objective of $74, led to the Hold rating as the potential for significant stock price appreciation appears constrained.
In another report released on October 8, Wells Fargo also maintained a Hold rating on the stock with a $69.00 price target.