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

• Market Cap: $27.19B
• Dividend Yield: 2.2%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.35
• Revenue Growth: 11.41%
• EPS Growth: 15.32%
• Country: US
• Employees: 8,606
• Sector: Financial
• Sector Strength: 78
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.05
• Shares Outstanding: 379,292,800
• 10 Day Avg. Volume: 1,435,863
• 30 Day Avg. Volume: 1,920,241
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 2.33
• Enterprise Value/Gross Profit: 10.40
• Enterprise Value/Ebitda: 14.41
• 1Y Price Target: $72.50
• Price Target Upside: 0.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 83 Outperform
• Price Target: $82.00 ▲(13.92% Upside)

W. R. Berkley Corporation's overall stock score is driven by its strong financial performance and positive earnings call, highlighting robust profitability and growth. Technical analysis and valuation provide additional support, although potential overbought conditions and competitive challenges in the property market are noted.

Positive Factors

Cost Efficiency

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

Investment Income

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

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

CAT Loss Ratio

The 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 Deficiency

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

W. R. Berkley Corporation Business Overview & Revenue Model

Company Description

W. R. Berkley Corporation (WRB) is a leading commercial lines property and casualty insurance holding company based in the United States. Founded in 1967, WRB operates through several subsidiaries, providing a diverse range of insurance products and services, including general liability, workers' compensation, and specialty insurance solutions. The company serves various sectors, including construction, transportation, and healthcare, leveraging its expertise to meet the unique needs of its clients while emphasizing risk management and underwriting excellence.

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 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.93B	13.64B	12.14B	11.17B	9.46B	8.10B
Gross Profit	3.13B	3.12B	2.72B	2.44B	2.02B	1.35B
EBITDA	2.26B	2.22B	1.86B	1.91B	1.56B	990.40M
Net Income	1.73B	1.76B	1.38B	1.38B	1.02B	530.67M
Balance Sheet
Total Assets	41.35B	40.57B	32.91B	33.88B	32.10B	34.93B
Cash, Cash Equivalents and Short-Term Investments	25.30B	24.33B	21.49B	18.99B	18.17B	16.53B
Total Debt	2.84B	2.84B	2.84B	2.84B	3.27B	2.73B
Total Liabilities	32.42B	32.16B	25.44B	27.11B	25.43B	28.61B
Stockholders Equity	8.91B	8.40B	7.46B	6.75B	6.65B	6.31B
Cash Flow
Free Cash Flow	3.61B	3.57B	2.88B	2.52B	2.12B	1.58B
Operating Cash Flow	3.68B	3.68B	2.93B	2.57B	2.18B	1.62B
Investing Cash Flow	-2.20B	-2.18B	-1.96B	-1.89B	-2.99B	119.70M
Financing Cash Flow	-904.19M	-852.49M	-1.06B	-771.99M	5.83M	-397.84M

W. R. Berkley Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.98
• 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 71.98 is above the 20-day moving average (MA) of 71.16, above the 50-day MA of 70.46, and above the 200-day MA of 65.91, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 57.22 is Neutral, neither overbought nor oversold. The STOCH value of 44.66 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	83 Outperform	$27.19B	16.38	20.63%	2.20%	11.41%	15.32%
KNSL	78 Outperform	$10.66B	23.88	29.98%	0.14%	21.51%	20.03%
CINF	78 Outperform	$24.02B	13.27	13.44%	2.20%	9.64%	-15.08%
AFG	73 Outperform	$11.33B	14.91	17.17%	6.72%	3.35%	-14.16%
MKL	73 Outperform	$24.79B	11.68	13.23%	―	1.66%	8.51%
Sector *	68 Neutral	$17.95B	11.54	10.27%	3.74%	9.64%	1.17%
CNA	68 Neutral	$13.41B	15.22	8.54%	7.80%	6.12%	-31.43%

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.