W. R. Berkley Corporation (WRB)
NYSE:WRB
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W. R. Berkley Corporation
(NYSE:WRB)
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Rating:76Outperform
Price Target:
$74.00
▲(10.73% Upside)
Action:ReiteratedDate:04/22/26
Strong financial performance and a constructive earnings-call backdrop (record investment income, strong underwriting results, solid cash flow, and capital returns) drive the score. The main constraint is weak technical momentum with the stock trading below key moving averages and negative MACD, while valuation appears reasonable rather than outright cheap.
Positive Factors
Cash generation
Consistently strong operating cash flow ($668M reported) and free cash flow roughly matching net income (~95% in 2025) indicate excellent cash conversion. Durable cash generation funds underwriting volatility, supports reinvestment, funds capital returns, and preserves strategic optionality over cycles.
Negative Factors
Competitive pressure in reinsurance/property
Management warns of accelerating competition in property and reinsurance as capacity increases and national carriers broaden appetite. Structural pricing pressure can persist for multiple quarters, compressing underwriting margins and forcing tougher selection or constrained growth in affected specialty lines.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistently strong operating cash flow ($668M reported) and free cash flow roughly matching net income (~95% in 2025) indicate excellent cash conversion. Durable cash generation funds underwriting volatility, supports reinvestment, funds capital returns, and preserves strategic optionality over cycles.
Read all positive factors
W. R. Berkley Corporation (WRB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.11B
Dividend Yield1.88%
Average Volume (3M)2.02M
Price to Earnings (P/E)12.6
Beta (1Y)0.36
Revenue Growth6.60%
EPS Growth9.14%
CountryUS
Employees8,606
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.30
Shares Outstanding390,018,980
10 Day Avg. Volume1,724,230
30 Day Avg. Volume2,022,507
Financial Highlights & Ratios
PEG Ratio7.63
Price to Book (P/B)2.87
Price to Sales (P/S)1.89
P/FCF Ratio8.02
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.78
Enterprise Value/Gross Profit8.96
Enterprise Value/Ebitda11.01
Forecast
1Y Price Target
$69.23Price Target Upside3.59% Upside
Rating ConsensusHold
Number of Analyst Covering14
EPS Forecast (FY)4.65
Revenue Forecast (FY)$13.02B
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 co...
How the Company Makes Money
WRB makes money primarily through (1) underwriting income and (2) investment income generated from investing insurance float, with additional contributions from fees in certain insurance-related services.
1) Underwriting (insurance and reinsuranc...
W. R. Berkley Corporation Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 27, 2026
Earnings Call Sentiment Positive
The earnings call was broadly positive: the company delivered record investment income, strong underwriting profits, high ROE (21.2%), premium growth in the insurance segment, robust operating cash flow ($668M), active capital return ($302M buybacks), and a strong balance sheet with low leverage (~22.6%). Offsetting items include intensified competition—especially in property/reinsurance—a shrinking reinsurance book, persistent concerns in auto and certain workers' compensation jurisdictions (California), and the fact that the low effective tax rate was a one-time benefit expected to normalize. Management emphasized disciplined cycle management and underwriting discipline while noting selective shifts toward growth where margins permit. Overall, the positive operational and financial metrics outweigh the highlighted market challenges.Positive Updates
Record Net Investment Income
Net investment income reached a record $404 million, up 12.2% year-over-year, driven by core portfolio growth of 11.8% to $354 million and investment fund income rising 46.3% to $40 million (reported with one-quarter lag).
Negative Updates
Heightened Market Competition, Especially in Property/Reinsurance
Management warned of accelerating competition in the reinsurance market—particularly property and catastrophe capacity—and noted national carriers are broadening appetite, increasing pricing pressure in certain pockets.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Net Investment Income
Net investment income reached a record $404 million, up 12.2% year-over-year, driven by core portfolio growth of 11.8% to $354 million and investment fund income rising 46.3% to $40 million (reported with one-quarter lag).
Read all positive updates
Company Guidance
Management's guidance emphasized disciplined cycle management and capital flexibility: they expect the 2026 expense ratio to be comfortably below 30% and Q1's tax benefit (16.3%) to be nonrecurring with the effective tax rate reverting to a normalized ~23% for the remainder of the year; investment-fund income normally averages $10–20M/quarter (Q1 was $40M), net investment income was a record $404M (core $354M, +11.8%), book yield ~4.7% vs new-money >5%, duration 3.1 years (reserve average life ~4 years) and invested assets ≈$28B (≈$25.5B ex-cash), with operating cash flow of $668M. Capital return remains a priority—Q1 repurchases were ~4.5M shares for $302M and dividends were $34M, shareholders' equity ≈$9.75B and financial leverage ≈22.6%—leaving room to repurchase shares or pay special dividends or deploy capital opportunistically. On underwriting they reiterated discipline: Q1 current accident-year combined ratio ex-cats 88.3% (calendar 90.7%), loss ratio ex-cats 59.7% (insurance 60.9%, reinsurance/monoline 51.1%), Q1 expense ratio 28.6%, renewal retention ~80% (78.5–81.5%) and rate ~+7.2% ex commissions, while noting they may modestly shift from strict rate-taking toward targeted growth in attractive pockets.W. R. Berkley Corporation Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
90
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.71B | 13.64B | 12.14B | 11.17B | 9.46B |
| Gross Profit | 2.91B | 3.12B | 2.72B | 2.44B | 2.02B |
| EBITDA | 2.37B | 2.22B | 1.86B | 1.91B | 1.56B |
| Net Income | 1.78B | 1.76B | 1.38B | 1.38B | 1.02B |
Balance Sheet | |||||
| Total Assets | 44.07B | 40.57B | 37.20B | 33.86B | 32.09B |
| Cash, Cash Equivalents and Short-Term Investments | 28.78B | 25.45B | 22.43B | 19.93B | 19.35B |
| Total Debt | 2.84B | 2.84B | 2.84B | 2.84B | 3.27B |
| Total Liabilities | 34.36B | 32.16B | 29.73B | 27.09B | 25.42B |
| Stockholders Equity | 9.70B | 8.40B | 7.46B | 6.75B | 6.65B |
Cash Flow | |||||
| Free Cash Flow | 3.47B | 3.57B | 2.88B | 2.52B | 2.12B |
| Operating Cash Flow | 3.64B | 3.68B | 2.93B | 2.57B | 2.18B |
| Investing Cash Flow | -2.03B | -2.18B | -1.96B | -1.89B | -2.99B |
| Financing Cash Flow | -1.03B | -852.49M | -1.06B | -771.99M | 5.83M |
W. R. Berkley Corporation Technical Analysis
Neutral
66.83
Price Trends
68.43
Negative
68.98
Negative
70.23
Negative
Market Momentum
-0.43
Negative
49.71
Neutral
42.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRB, the sentiment is Neutral. The current price of 66.83 is above the 20-day moving average (MA) of 65.99, below the 50-day MA of 68.43, and below the 200-day MA of 70.23, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 42.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WRB.
W. R. Berkley Corporation Risk Analysis
W. R. Berkley Corporation disclosed 32 risk factors in its most recent earnings report. W. R. Berkley Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
W. R. Berkley Corporation Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $25.25B | 22.22 | 16.13% | 2.10% | 11.41% | 4.67% | |
78 Outperform | $7.63B | 17.44 | 28.05% | 0.17% | 17.08% | 30.47% | |
76 Outperform | $26.11B | 12.62 | 26.08% | 1.88% | 6.60% | 9.14% | |
74 Outperform | $10.75B | 13.60 | 18.25% | 6.71% | -1.80% | -4.66% | |
72 Outperform | $12.90B | 10.13 | 11.65% | 8.03% | 5.04% | 33.43% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $22.01B | ― | 11.85% | ― | 2.96% | 1.82% |
* Financial Sector Average
WRB
W. R. Berkley Corporation
66.95
-2.87
-4.12%
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7.50%
MKL
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1,759.21
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KNSL
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331.03
-103.42
-23.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.