tiprankstipranks
Trending News
More News >
W. R. Berkley Corporation (WRB)
NYSE:WRB
Advertisement

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

Compare
355 Followers

Top Page

WRB

W. R. Berkley Corporation

(NYSE:WRB)

Select Model
Select Model
Select Model
Outperform 77 (OpenAI - 4o)
Rating:77Outperform
Price Target:
$82.00
▲(11.70% Upside)
W. R. Berkley Corporation's strong financial performance and positive earnings call are the most significant factors driving the score. Technical indicators support a positive trend, while valuation is fair. The company is well-positioned in the insurance industry, with opportunities for growth despite some market challenges.
Positive Factors
Revenue Growth
Record premiums indicate strong demand for WRB's insurance products, suggesting effective market penetration and a solid growth trajectory.
Investment Income
High investment income enhances WRB's financial stability, providing a buffer against underwriting losses and supporting long-term profitability.
Balance Sheet Health
Growth in equity strengthens WRB's financial foundation, offering greater resilience against market fluctuations and supporting future investments.
Negative Factors
Competitive Market
Increased competition in the property market could pressure WRB's margins, challenging its ability to maintain pricing power and profitability.
Foreign Currency Losses
Currency losses can erode profitability, highlighting the risk of international operations and the need for effective hedging strategies.
Labor and Tariff Concerns
Tariffs and labor cost changes could increase operational expenses, impacting WRB's cost structure and long-term financial performance.

W. R. Berkley Corporation (WRB) vs. SPDR S&P 500 ETF (SPY)

W. R. Berkley Corporation Business Overview & Revenue Model

Company DescriptionW. 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 MoneyW. 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 Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 20, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong overall performance with record financial results and growth in premiums and investment income. However, there are concerns about increased competition in the property market, foreign currency losses, and potential challenges from tariffs and labor costs. The sentiment is balanced with significant achievements and notable challenges.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Net income per diluted share increased by 8.7% to $1 per share, and operating earnings reached $420 million, yielding an annualized return on equity of 20%.
Record Premiums and Investment Income
Net premiums written increased to a record $3.4 billion with growth across all lines of business, and record net investment income of $379 million was reported with a 16.5% improvement in income from fixed maturity securities.
Growth in Stockholders' Equity
Stockholders' equity increased by more than $380 million or 4.3% over the first quarter of 2025 to a record $9.3 billion.
Resilient Underwriting Performance
The calendar year combined ratio was 91.6%, resulting in $261 million of underwriting income, with cat losses remaining relatively flat despite an increase in the dollar amount.
Negative Updates
Challenges in Property Market
The property insurance market is becoming more competitive, particularly for larger accounts, driven by a more competitive reinsurance marketplace and increased activity from the MGA market.
Foreign Currency Losses
The company experienced foreign currency losses of $55 million due to the weakening U.S. dollar.
Concerns Over Tariffs and Labor Costs
Potential threats from tariffs and labor market changes could impact future wage inflation and economic conditions.
Underperformance in Casualty Reinsurance Discipline
Disappointment was expressed in the lack of discipline in casualty lines within the reinsurance space, particularly regarding seeding commissions.
Company Guidance
In the second quarter of 2025, W. R. Berkley Corporation reported a strong performance with significant growth across various metrics. Net income per diluted share rose by 8.7% over the previous year to $1, or $401 million, with an annualized return on equity of 19.1%. Operating earnings, now excluding after-tax foreign currency gains and losses, were $420 million, or $1.05 per share, yielding a return on equity of 20%. The company's underwriting activities resulted in a combined ratio of 91.6%, leading to $261 million in underwriting income. Catastrophe losses amounted to $99 million, slightly up from $90 million in the previous year. Net premiums written hit a record $3.4 billion, while net investment income reached $379 million, driven by new money rates on fixed maturity securities. The effective tax rate for the quarter was 23.2%, and stockholders' equity increased by over $380 million to a record $9.3 billion. Despite fluctuations in the property and casualty space, the company remains optimistic about its investment and underwriting strategies, expecting continued earnings growth amid the evolving market dynamics.

W. R. Berkley Corporation Financial Statement Overview

Summary
W. R. Berkley Corporation demonstrates strong financial performance with high profitability and growth metrics. The income statement shows excellent margins and revenue growth, while the balance sheet is robust with a debt-free position. Cash flow is strong, although there is a minor weakness in free cash flow growth.
Income Statement
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.29B13.64B12.14B11.17B9.46B8.10B
Gross Profit3.10B3.12B2.72B2.44B2.02B1.35B
EBITDA2.34B2.22B1.86B1.91B1.56B990.40M
Net Income1.76B1.76B1.38B1.38B1.02B530.67M
Balance Sheet
Total Assets42.66B40.57B32.91B33.88B32.10B34.93B
Cash, Cash Equivalents and Short-Term Investments31.49B24.33B21.49B18.99B18.17B16.53B
Total Debt2.84B2.84B2.84B2.84B3.27B2.73B
Total Liabilities33.35B32.16B25.44B27.11B25.43B28.61B
Stockholders Equity9.29B8.40B7.46B6.75B6.65B6.31B
Cash Flow
Free Cash Flow3.43B3.57B2.88B2.52B2.12B1.58B
Operating Cash Flow3.50B3.68B2.93B2.57B2.18B1.62B
Investing Cash Flow-2.35B-2.18B-1.96B-1.89B-2.99B119.70M
Financing Cash Flow-757.49M-852.49M-1.06B-771.99M5.83M-397.84M

W. R. Berkley Corporation Technical Analysis

Technical Analysis Sentiment
Positive
Last Price73.41
Price Trends
50DMA
70.72
Positive
100DMA
71.42
Positive
200DMA
66.66
Positive
Market Momentum
MACD
0.60
Negative
RSI
58.47
Neutral
STOCH
73.75
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 73.41 is above the 20-day moving average (MA) of 72.29, above the 50-day MA of 70.72, and above the 200-day MA of 66.66, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 58.47 is Neutral, neither overbought nor oversold. The STOCH value of 73.75 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 Risk Analysis

W. R. Berkley Corporation disclosed 29 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
11.87B15.5016.92%6.47%3.35%-14.16%
78
Outperform
24.19B13.5412.73%2.21%9.64%-15.08%
77
Outperform
$27.84B16.7020.63%1.83%11.41%15.32%
74
Outperform
9.87B22.3827.96%0.16%21.51%20.03%
73
Outperform
24.33B11.5316.24%1.66%8.51%
66
Neutral
12.45B14.148.23%8.30%6.12%-31.43%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WRB
W. R. Berkley Corporation
73.41
17.89
32.22%
AFG
American Financial Group
142.30
15.44
12.17%
CINF
Cincinnati Financial
154.69
21.63
16.26%
CNA
CNA Financial
46.00
0.88
1.95%
MKL
Markel
1,923.06
350.90
22.32%
KNSL
Kinsale Capital Group
423.61
-25.19
-5.61%

W. R. Berkley Corporation Corporate Events

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
W. R. Berkley Holds Annual Stockholders Meeting Decisions
Neutral
Jun 13, 2025

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.

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.Date of analysis: Sep 09, 2025