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

• Market Cap: $27.25B
• Dividend Yield: 1.88%
• Average Volume (3M): 2.20M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.29
• Revenue Growth: 11.08%
• EPS Growth: 22.01%
• Country: US
• Employees: 8,606
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.13
• Shares Outstanding: 380,021,180
• 10 Day Avg. Volume: 1,861,644
• 30 Day Avg. Volume: 2,198,740
• PEG Ratio: 7.63
• Price to Book (P/B): 2.84
• Price to Sales (P/S): 1.89
• P/FCF Ratio: 8.15
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.88
• Enterprise Value/Gross Profit: 9.47
• Enterprise Value/Ebitda: 11.63
• 1Y Price Target: $69.62
• Price Target Upside: -2.90% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): 4.56
• Revenue Forecast (FY): $13.02B

• Rating: 81 Outperform
• Price Target: $83.00 ▲(15.76% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by strong financial performance (growth, profitability, improving leverage, and excellent cash generation). The earnings call reinforces this with record results and disciplined expense/capital management, while competitive underwriting conditions and planned higher spending temper upside. Technicals are supportive but not strongly overextended, and valuation/dividend are reasonable.

Positive Factors

Cash generation

WRB’s free cash flow tracking ~95% of net income and strong operating cash flow ($3.6B FY) show durable cash conversion. This sustains dividends, opportunistic buybacks, reinvestment, and underwriting capacity through underwriting cycles, supporting long‑term financial flexibility.

Conservative balance sheet

Improving, conservative leverage (debt/equity falling) and low financial leverage provide loss absorption and capital flexibility. This supports underwriting discipline, capacity to absorb catastrophe volatility and sustained capital returns without compromising solvency over multi‑quarter horizons.

Underwriting and revenue momentum

Accelerating premium growth and record underwriting income reflect effective niche focus and pricing execution. Combined ratios near historical good levels and expanded premium base enhance scale, diversification and the ability to maintain underwriting profitability across business cycles.

Negative Factors

Auto liability weakness

Persistent weakness in auto liability is structural for many insurers: sustained severity and adverse loss trends can erode underwriting margins and force portfolio retrenchment. Shrinking exposure reduces growth and may require higher pricing or reserves to restore long‑term margin adequacy.

Property/cat reinsurance rate compression

Sharp treaty rate declines (‑19%) signal intense competition in property/cat reinsurance. That pressure can compress margins, force greater underwriting selectivity, and spill into casualty pricing as carriers chase premium, posing multi‑quarter headwinds to underwriting profitability.

Near‑term tech/AI spending

Planned material investments in technology/data/AI will raise expense and capital allocation in the near term, pressuring reported expense ratios and free cash flow availability. While strategic, these costs can temper near‑term margin expansion and capital returns before benefits materialize.

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. The company writes policies across various lines of business, including general liability, workers' compensation, and property insurance, which contribute significantly to its revenue streams. Additionally, WRB earns income from investment activities, as it invests the premiums collected before claims are paid out. This investment income is a critical component of its overall profitability. The company also benefits from a disciplined underwriting approach, aiming to achieve favorable loss ratios and underwriting profitability. Strategic partnerships with brokers and agents enhance its market reach, while its focus on niche markets allows for premium pricing and better risk management, ultimately contributing to its earnings.

W. R. Berkley Corporation Financial Statement Overview

Summary

Strong financial quality overall: rapid revenue growth into 2025, durable profitability, improving/conservative leverage, and excellent cash conversion (FCF ~95% of net income in 2025). Main offsets are margin compression in 2025 vs. 2024 and a sharp reported total-asset change that reduces comparability.

Income Statement

Revenue has expanded strongly over the last several years, accelerating into 2025 (up ~35% vs. 2024) after steady growth from 2021–2024. Profitability is consistently solid for the period, with net margin generally in the low-teens (about 12.1% in 2025) and operating profitability holding up well. The main weakness is some margin compression in 2025 versus 2024 (both gross and net margins stepped down), indicating faster growth came with some giveback in profitability.

Balance Sheet

Leverage looks conservative and improving: debt relative to equity declined over time (from ~0.49 in 2021 to ~0.29 in 2025), supporting balance-sheet flexibility. Returns to shareholders are strong, with return on equity consistently healthy (about 18% in 2025). The key watch-out is the notable drop in reported total assets in 2025 versus prior years, which stands out as a potential mix/scale change that reduces balance-sheet comparability year to year based on the provided data.

Cash Flow

Cash generation is a clear strength: operating cash flow is consistently high and free cash flow closely tracks earnings (free cash flow running at ~95% of net income in 2025). Free cash flow also shows robust momentum, with strong growth in 2025 versus 2024. A limitation in the dataset is that the provided operating cash flow coverage figure is listed as 0.0 each year, so cash coverage of obligations can’t be assessed from the available metrics.

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	12.89B	40.57B	37.20B	33.86B	32.10B
Cash, Cash Equivalents and Short-Term Investments	2.49B	24.33B	21.49B	18.99B	18.17B
Total Debt	2.84B	2.84B	2.84B	2.84B	3.27B
Total Liabilities	-9.81B	32.16B	29.73B	27.09B	25.42B
Stockholders Equity	9.81B	8.40B	7.46B	6.75B	6.65B
Cash Flow
Free Cash Flow	3.41B	3.57B	2.88B	2.52B	2.12B
Operating Cash Flow	3.58B	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

• Technical Analysis Sentiment: Positive
• Last Price: 71.70
• 50DMA: Positive
• 100DMA: Positive
• 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 71.7 is above the 20-day moving average (MA) of 70.44, above the 50-day MA of 69.52, and above the 200-day MA of 70.94, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 59.02 is Neutral, neither overbought nor oversold. The STOCH value of 69.14 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	81 Outperform	$27.25B	16.11	19.67%	1.88%	11.08%	22.01%
KNSL	78 Outperform	$9.02B	18.00	29.25%	0.17%	18.13%	15.69%
CINF	77 Outperform	$25.52B	10.81	16.04%	2.10%	-0.63%	-30.68%
AFG	74 Outperform	$11.08B	13.19	18.13%	6.71%	―	-10.75%
MKL	74 Outperform	$26.06B	12.25	―	―	-6.96%	-26.28%
CNA	71 Outperform	$13.00B	10.24	9.03%	8.03%	5.41%	-23.52%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

W. R. Berkley Corporation Corporate Events

Mitsui Sumitomo Acquires Stake in W. R. Berkley

On December 5, 2025, W. R. Berkley Corporation announced that Mitsui Sumitomo Insurance Co., Ltd. (MSI) has acquired beneficial ownership of at least 12.5% of the company’s outstanding common stock through agreements with the Berkley family. MSI’s shares will be voted according to the Berkley family’s recommendations, with the investment expected to be completed in the first quarter of 2026. This acquisition signifies a strategic partnership and potential influence on the company’s governance, highlighting MSI’s interest in expanding its presence in the U.S. insurance market.

The most recent analyst rating on (WRB) stock is a Sell with a $64.00 price target. To see the full list of analyst forecasts on W. R. Berkley Corporation stock, see the WRB Stock Forecast page.