W. R. Berkley Corporation (WRB) AI Stock Analysis

• Market Cap: $26.54B
• Dividend Yield: 2.26%
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.35
• Revenue Growth: 11.41%
• EPS Growth: 15.32%
• Country: US
• Employees: 8,606
• Sector: Financial
• Sector Strength: 71
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.05
• Shares Outstanding: 379,292,800
• 10 Day Avg. Volume: 1,864,434
• 30 Day Avg. Volume: 2,158,141
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 10.40
• Enterprise Value/Ebitda: 14.41
• 1Y Price Target: $73.42
• Price Target Upside: 4.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 82 Outperform
• Price Target: $80.00 ▲(14.27% Upside)

W. R. Berkley Corporation's overall stock score reflects strong financial performance, effective earnings call outcomes, and reasonable valuation metrics. The company's robust profitability, debt-free balance sheet, and strategic growth initiatives are significant strengths. Technical analysis presents a mixed outlook, but the company's strong fundamentals and effective capital management provide a solid investment case.

Positive Factors

Investment Income

Net investment income of $379 million is above the consensus expectation of $356 million.

Operational Efficiency

The expense ratio was 27.8%, below the expected 28.6%, indicating cost efficiency.

Strategic Investment

Japanese insurer Mitsui Sumitomo entered into an agreement with WR Berkley to acquire a 15% stake in the company from third parties, which could signal confidence in WRB's operations.

Negative Factors

Earnings Pressure

The low likelihood but high severity issue of WRB's estimated peer-low Other Liability Occurrence reserve position could place material incremental pressure on near-term earnings.

Reserve Deficiency

The estimated Other Liability Occurrence reserve deficiency has weakened for WRB, placing it most at risk compared to peers.

Valuation Concerns

WRB shares are downgraded to Neutral due to current valuation levels creating a less favorable risk/reward skew.

W. R. Berkley Corporation Business Overview & Revenue Model

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.

How the Company Makes Money

W. R. Berkley Corporation generates revenue primarily through the underwriting of insurance premiums, which are collected from policyholders in exchange for coverage against various risks. Key revenue streams include premiums from commercial lines insurance, where the company assesses risks and sets prices accordingly. Additionally, WRB earns investment income from its portfolio of investments, which includes equities, fixed income securities, and real estate investments. Significant partnerships with brokers and agents enhance its distribution capabilities, while a focus on specialized insurance products allows the company to maximize profitability in niche markets. The company's disciplined underwriting approach and risk management strategies also contribute to its overall financial performance.

W. R. Berkley Corporation Financial Statement Overview

Summary

W. R. Berkley Corporation exhibits strong income statement metrics with high profitability and growth. The balance sheet is robust with a debt-free position and strong equity returns. Cash flow is solid with effective cash generation, although free cash flow growth has declined slightly. The overall financial health is excellent with sustainable growth and profitability trends.

Income Statement

W. R. Berkley Corporation exhibits strong income statement metrics with a remarkable gross profit margin of 86.40% in TTM, indicating efficient cost management. The net profit margin remains healthy at 12.39%. Revenue growth is robust with a TTM increase of 2.51% over the previous year and a notable 47.22% increase from 2021 to 2022. The company's EBIT and EBITDA margins for TTM are solid at 33.96% and 12.36%, respectively, highlighting operational efficiency. The income statement demonstrates excellent profitability and growth, with minimal weaknesses observed.

Balance Sheet

The balance sheet of W. R. Berkley Corporation is strong, with a debt-to-equity ratio of 0.00 in TTM, indicating a debt-free position, which is rare and advantageous for stability. The return on equity (ROE) is commendable at 18.63% for TTM, reflecting effective use of equity capital. The equity ratio improved to 22.48% in TTM, showing a solid equity base. While the balance sheet is robust, the absence of debt may limit leverage opportunities for expansion.

Cash Flow

The cash flow statement reveals a strong performance, with an operating cash flow to net income ratio of 1.66 in TTM, indicating effective cash generation relative to net income. Free cash flow shows a slight decline in growth with a reduction of 21.23% in TTM compared to the previous year, but remains positive at $2.82 billion. The free cash flow to net income ratio stands at 1.63 in TTM, showcasing strong cash conversion. Overall, cash flow metrics are robust, with minor weaknesses in free cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.64B	12.14B	11.17B	9.46B	8.10B
Gross Profit	3.12B	2.72B	2.44B	2.02B	1.35B
EBITDA	2.22B	1.86B	1.91B	1.56B	990.40M
Net Income	1.76B	1.38B	1.38B	1.02B	530.67M
Balance Sheet
Total Assets	40.57B	32.91B	33.88B	32.10B	34.93B
Cash, Cash Equivalents and Short-Term Investments	24.33B	317.62M	18.99B	2.51B	3.00B
Total Debt	2.84B	2.84B	2.84B	3.27B	2.73B
Total Liabilities	32.16B	25.44B	27.11B	25.43B	28.61B
Stockholders Equity	8.40B	7.46B	6.75B	6.65B	6.31B
Cash Flow
Free Cash Flow	3.57B	2.88B	2.52B	2.12B	1.58B
Operating Cash Flow	3.68B	2.93B	2.57B	2.18B	1.62B
Investing Cash Flow	-2.18B	-1.96B	-1.89B	-2.99B	119.70M
Financing Cash Flow	-852.49M	-1.06B	-771.99M	5.83M	-397.84M

W. R. Berkley Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 70.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRB, the sentiment is Positive. The current price of 70.01 is above the 20-day moving average (MA) of 69.13, below the 50-day MA of 70.83, and above the 200-day MA of 64.94, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 68.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WRB.

W. R. Berkley Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRB	82 Outperform	$26.54B	15.92	20.63%	2.26%	11.41%	15.32%
CINF	77 Outperform	$23.44B	13.00	13.44%	2.22%	9.64%	-15.08%
CNA	74 Outperform	$12.86B	14.77	8.54%	8.00%	6.12%	-31.43%
AFG	73 Outperform	$10.71B	14.08	17.17%	7.03%	3.35%	-14.16%
Sector *	68 Neutral	$17.46B	11.65	10.44%	3.86%	10.36%	1.15%
L	66 Neutral	$19.43B	14.89	7.96%	0.27%	8.27%	-7.92%
MKL	66 Neutral	$24.10B	11.42	13.23%	―	1.66%	8.51%

W. R. Berkley Corporation Corporate Events

W. R. Berkley Holds Annual Stockholders Meeting Decisions

On June 11, 2025, W. R. Berkley Corporation held its Annual Meeting of Stockholders, where several key decisions were made. These included the election of four directors with staggered terms, approval of an amendment to increase authorized common stock shares, a non-binding advisory vote on executive compensation, ratification of KPMG LLP as the independent auditor for 2025, and a stockholder proposal on director election resignation governance policy. The outcomes of these decisions reflect the company’s strategic direction and governance priorities, impacting its operational and financial structure.

The most recent analyst rating on (WRB) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on W. R. Berkley Corporation stock, see the WRB Stock Forecast page.