CAT LossesThe company saw higher than expected CAT loss ratio of 2.7% vs consensus of 2.4% in the Insurance segment, with a total CAT loss ratio of 3.7% higher than consensus expectations of 3.2%.
Reserve DeficiencyThe estimated Other Liability Occurrence reserve deficiency has weakened for WRB, placing it most at risk compared to peers.
Valuation ConcernsDespite being in a strong position to benefit from strong casualty pricing increases, WRB shares are downgraded to Neutral due to current valuation levels creating a less favorable risk/reward skew.