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W. R. Berkley Corporation
(NYSE:WRB)
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Rating:78Outperform
Price Target:
$83.00
▲(9.99% Upside)
Action:Reiterated
Date:08/01/26
WRB scores well primarily on financial performance—strong growth, high returns, improving leverage, and robust free cash flow conversion. The earnings call reinforces operational strength and shareholder returns, while valuation is supportive. The score is tempered by only moderately positive price trend signals (limited momentum data) and mixed corporate-event risk, particularly leadership transition uncertainty alongside improved liquidity.
Positive Factors
Cash generation and FCF conversion
Sustained high operating cash flow and near-1.0 free cash flow conversion indicate durable earnings quality and internal funding capacity. This supports consistent capital returns, reinvestment in underwriting and tech, and resilience through underwriting cycles without relying on external financing.
Negative Factors
Heightened reinsurance competition
Sustained intensifying competition in property and casualty reinsurance can compress pricing and margins over multiple renewals. For a specialty insurer, prolonged rate pressure in reinsurance markets reduces underwriting leverage, forces tighter selection, and can limit growth in higher-return segments.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation and FCF conversion
Sustained high operating cash flow and near-1.0 free cash flow conversion indicate durable earnings quality and internal funding capacity. This supports consistent capital returns, reinvestment in underwriting and tech, and resilience through underwriting cycles without relying on external financing.
Read all positive factors
W. R. Berkley Corporation Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Reports pre‑tax profit generated by each business unit, highlighting which segments drive overall earnings and which drag on results. Watching segment-level earnings helps investors see how underwriting performance, investment returns, and expense allocation combine to affect Berkley’s bottom line.
Reports pre‑tax profit generated by each business unit, highlighting which segments drive overall earnings and which drag on results. Watching segment-level earnings helps investors see how underwriting performance, investment returns, and expense allocation combine to affect Berkley’s bottom line.
Data provided by:
The Fly
The FlyW. R. Berkley Corporation (WRB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.00B
Dividend Yield2.54%
Average Volume (3M)2.01M
Price to Earnings (P/E)14.8
Beta (1Y)0.24
Revenue Growth4.27%
EPS Growth10.55%
CountryUS
Employees8,804
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.89
Shares Outstanding372,276,730
10 Day Avg. Volume2,312,442
30 Day Avg. Volume2,008,114
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$72.55Price Target Upside-3.86% Downside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)4.83
Revenue Forecast (FY)$14.69B
W. R. Berkley Corporation Business Overview & Revenue Model
Company Description
W. R. Berkley Corporation functions as an insurance holding company, primarily underwriting commercial policies across the United States and globally. Its extensive operations are divided into two principal divisions: Insurance, and Reinsurance & ...
How the Company Makes Money
WRB primarily makes money through its insurance and reinsurance operations and the investment of its insurance float. (1) Underwriting income: The company collects premiums for insurance and reinsurance policies and aims to generate profit when ea...
W. R. Berkley Corporation Earnings Call Summary
Earnings Call Date:Jul 20, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call emphasized strong financial performance: double-digit operating EPS growth, record investment income, robust cash flow, record gross and net premiums written, and substantial capital returns and balance sheet strength. These positives coexist with notable market headwinds — heightened competition in reinsurance and monoline excess, concerns about MGUs and delegated authority, aggressive rate cuts in certain casualty niches (20%–30% cited), and potential modest expense increases tied to strategic investments. Management struck a constructive tone, highlighting disciplined underwriting, targeted growth where margins are attractive, and continued investment in productivity (AI/automation). On balance, the favorable operating and investment results and capital returns outweigh the market-structure and competitive challenges discussed.Positive Updates
Operating Earnings Growth
Operating earnings per diluted share grew 21% year-over-year to $1.27 (or $497 million), producing an annualized return on beginning-of-year equity of 20.5%.
Negative Updates
Heightened Competition in Reinsurance and Monoline Excess
Reinsurance and Monoline Excess experienced heightened competition in both property and casualty lines, driving net premiums written down to $36 million and pressuring returns in that segment.
Read all updates
Q2-2026 Updates
Positive
Negative
Operating Earnings Growth
Operating earnings per diluted share grew 21% year-over-year to $1.27 (or $497 million), producing an annualized return on beginning-of-year equity of 20.5%.
Read all positive updates
Company Guidance
Management's guidance emphasized keeping the expense ratio at "30 or better" (Q2: 28.5%), continuing opportunistic capital returns (Q2 total returned $334M — $223M dividends, $111M buybacks — and >$1.3B over the prior 12 months, ~14% of equity) with no predetermined quarterly target, and growing net invested assets (currently $34.2B) driven by strong operating cash flow ($800M in Q2, up from $700M year‑ago) and a new‑money rate starting around 5% vs. a domestic book yield of 4.8% (implying investment income upside); they noted portfolio duration of 3.2 years (reserve average life ~3.9 years) with flexibility to adjust, an effective tax rate of 21.4% (vs. a normalized ~23% +/-), renewal retention ~80%, a quarterly rate‑increase ex‑comp of 3.8%, AI underwriting workbench efficiency gains of 20%+, and results (operating EPS $1.27, +21%; core investment income +13% to $371M) that management says support continued attractive returns.W. R. Berkley Corporation Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.01B | 14.71B | 13.64B | 12.14B | 11.17B | 9.46B |
| Gross Profit | 8.08B | 2.91B | 3.12B | 2.72B | 2.44B | 2.02B |
| EBITDA | 2.51B | 2.37B | 2.22B | 1.86B | 1.91B | 1.56B |
| Net Income | 1.93B | 1.78B | 1.76B | 1.38B | 1.38B | 1.02B |
Balance Sheet | ||||||
| Total Assets | 45.68B | 44.07B | 40.57B | 37.20B | 33.86B | 32.09B |
| Cash, Cash Equivalents and Short-Term Investments | 29.78B | 28.78B | 25.45B | 22.43B | 19.93B | 19.35B |
| Total Debt | 2.84B | 2.84B | 2.84B | 2.84B | 2.84B | 3.27B |
| Total Liabilities | 35.46B | 34.36B | 32.16B | 29.73B | 27.09B | 25.42B |
| Stockholders Equity | 10.20B | 9.70B | 8.40B | 7.46B | 6.75B | 6.65B |
Cash Flow | ||||||
| Free Cash Flow | 3.50B | 3.47B | 3.57B | 2.88B | 2.52B | 2.12B |
| Operating Cash Flow | 3.62B | 3.64B | 3.68B | 2.93B | 2.57B | 2.18B |
| Investing Cash Flow | -1.82B | -2.03B | -2.18B | -1.96B | -1.89B | -2.99B |
| Financing Cash Flow | -1.18B | -1.03B | -852.49M | -1.06B | -771.99M | 5.83M |
W. R. Berkley Corporation Technical Analysis
Positive
75.46
Price Trends
69.69
Positive
67.85
Positive
69.02
Positive
Market Momentum
0.89
Positive
47.22
Neutral
12.47
Positive
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 75.46 is above the 20-day moving average (MA) of 72.78, above the 50-day MA of 69.69, and above the 200-day MA of 69.02, indicating a neutral trend. The MACD of 0.89 indicates Positive momentum. The RSI at 47.22 is Neutral, neither overbought nor oversold. The STOCH value of 12.47 is Positive, 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 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 | $27.27B | 8.35 | 20.89% | 1.98% | 19.55% | 84.05% | |
79 Outperform | $8.12B | 14.39 | 29.06% | 0.24% | 15.82% | 28.42% | |
78 Outperform | $27.00B | 14.83 | 19.55% | 2.44% | 4.27% | 10.55% | |
76 Outperform | $11.77B | 13.48 | 18.76% | 4.88% | -1.65% | 10.67% | |
75 Outperform | $23.32B | 10.31 | 16.09% | ― | 0.86% | 8.75% | |
74 Outperform | $14.19B | 11.71 | 11.99% | 7.23% | 4.05% | 35.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
WRB
W. R. Berkley Corporation
71.39
3.22
4.72%
AFG
American Financial Group
140.60
22.56
19.11%
CINF
Cincinnati Financial
179.42
32.29
21.94%
CNA
CNA Financial
52.96
10.03
23.37%
MKL
Markel
1,887.65
-50.93
-2.63%
KNSL
Kinsale Capital Group
362.82
-80.36
-18.13%
W. R. Berkley Corporation Corporate Events
Executive/Board Changes
W. R. Berkley Announces Executive Leadership Transition Plan
Neutral
Jun 26, 2026
W. R. Berkley Corporation announced that Executive Vice President Lucille Sgaglione has informed the company she will resign from her position effective June 30, 2026. After stepping down as an executive officer, she will remain with the company o...
Business Operations and StrategyPrivate Placements and Financing
W. R. Berkley Extends Revolving Credit Facility Maturity
Positive
Jun 11, 2026
On June 9, 2026, W. R. Berkley Corporation amended its existing credit agreement, originally dated April 1, 2022, with a syndicate of lenders and Bank of America, N.A. serving as administrative agent. The amendment extends the maturity date of the...
Business Operations and StrategyExecutive/Board Changes
W. R. Berkley Announces Leadership Transition After Founder’s Passing
Negative
Jun 10, 2026
On June 9, 2026, W. R. Berkley Corporation announced that its founder and Executive Chairman, William R. Berkley, had passed away at the age of 80, marking the end of a nearly six-decade leadership legacy that transformed the firm into a Fortune 5...
Executive/Board ChangesShareholder Meetings
W. R. Berkley Shareholders Back Directors, Pay and Auditor
Positive
Jun 5, 2026
On June 3, 2026, W. R. Berkley Corporation held its Annual Meeting of Stockholders, where shareholders elected five directors to staggered terms expiring between 2027 and 2029, including W. Robert Berkley, Jr., Andrew J. Carrier, María Luisa ...
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.