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

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WRB

W. R. Berkley Corporation

(NYSE:WRB)

Rating:84Outperform
Price Target:
$80.00
▲(16.26%Upside)
W. R. Berkley Corporation's overall stock score is driven by excellent financial performance and strong earnings call outcomes, which emphasize robust profitability and strategic growth. Although technical indicators suggest potential short-term bearish momentum, the fair valuation and attractive dividend yield provide a balanced long-term perspective.
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 Losses
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.
Valuation Concerns
Despite being in a strong position to benefit from strong casualty pricing increases, WRB shares are downgraded to Neutral due to current valuation levels creating a less favorable risk/reward skew.

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 makes money primarily through underwriting and investment income. The company generates revenue by collecting premiums from policyholders in exchange for providing insurance coverage. This includes a diverse array of products such as liability, workers' compensation, and professional indemnity insurance. Additionally, WRB earns income through the strategic investment of premiums collected, focusing on a diversified portfolio to optimize returns. The company's decentralized operating structure allows each of its business units to focus on specific niches, optimizing underwriting performance and risk management. Significant partnerships with brokers and agents facilitate access to a broad client base, further enhancing premium income and market reach.

W. R. Berkley Corporation Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q2-2025)
|
% Change Since: 1.49%|
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted a strong financial performance with record net premiums and investment income growth. However, there were concerns regarding catastrophe losses, foreign currency losses, and increased competition in the property reinsurance market. The company expressed caution regarding the MGA market's growth fueled by inexperienced entrants. Despite these challenges, the company's capital management remains effective, supporting a positive outlook.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Net income per diluted share increased 8.7% over the prior year to $1 per share, with an annualized return on beginning of year equity of 19.1%.
Record Net Premiums
Net premiums earned reached a quarterly record of $3.1 billion, with net premiums written increasing to a record $3.4 billion in the quarter.
Investment Income Growth
Record net investment income of $379 million, with fixed maturity securities improving 16.5% year-over-year.
Stockholders' Equity Growth
Stockholders' equity increased by more than $380 million or 4.3% over the first quarter of 2025 to a record $9.3 billion.
Effective Capital Management
Paid ordinary and special dividends of $224 million, with growth in book value per share before dividends at 6.8% in the quarter and 14.3% year-to-date.
Negative Updates
Catastrophe Losses
Cat losses were $99 million in the second quarter of 2025 compared with $90 million in the prior year's quarter.
Foreign Currency Losses
Foreign currency losses in the quarter of $55 million related to the weakening U.S. dollar relative to most other currencies.
Challenges in Property Reinsurance Market
The property reinsurance market is becoming more competitive, impacting pricing and capacity.
Concerns Over MGA Market
Growth in the MGA space is driven by new entrants lacking expertise, and supported by reinsurance capacity without adequate oversight.
Company Guidance
In their second quarter 2025 earnings call, W. R. Berkley Corporation provided comprehensive guidance on their financial performance and strategic outlook. The company reported a net income per diluted share of $1, marking an 8.7% increase over the previous year, and an annualized return on beginning of year equity of 19.1%. Operating earnings were $420 million, or $1.05 per share, yielding a 20% annualized return. The combined ratio before catastrophe losses was 88.4%, with a current accident year loss ratio of 59.9% and an expense ratio of 28.5%. Catastrophe losses were $99 million, consistent with the prior year's impact despite an increased dollar amount due to growth in the property book. Net premiums written reached a record $3.4 billion, supporting an impressive underwriting income of $261 million. The investment portfolio also performed well, with net investment income hitting $379 million, driven by strong results from sectors like transportation and financial services, and a book yield increase to 4.7%. The effective tax rate stood at 23.2%, while stockholders' equity rose by $380 million to $9.3 billion. The company's balance sheet remains robust with cash and cash equivalents exceeding $2 billion and a financial leverage of 23.4%. The leadership expressed confidence in their strategy to maintain high risk-adjusted returns and continue growing earnings, despite acknowledging challenges like social inflation, macroeconomic factors, and industry cyclicality.

W. R. Berkley Corporation Financial Statement Overview

Summary
W. R. Berkley Corporation exhibits strong income statement metrics with high profitability and growth. The balance sheet is robust with a debt-free position and strong equity returns. Cash flow is solid with effective cash generation, although free cash flow growth has declined slightly. The overall financial health is excellent with sustainable growth and profitability trends.
Income Statement
92
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
85
Very 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
88
Very 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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.64B12.14B11.17B9.46B8.10B
Gross Profit3.12B2.72B2.44B2.02B1.35B
EBITDA2.22B1.86B1.91B1.56B990.40M
Net Income1.76B1.38B1.38B1.02B530.67M
Balance Sheet
Total Assets40.57B32.91B33.88B32.10B34.93B
Cash, Cash Equivalents and Short-Term Investments24.33B317.62M18.99B2.51B3.00B
Total Debt2.84B2.84B2.84B3.27B2.73B
Total Liabilities32.16B25.44B27.11B25.43B28.61B
Stockholders Equity8.40B7.46B6.75B6.65B6.31B
Cash Flow
Free Cash Flow3.57B2.88B2.52B2.12B1.58B
Operating Cash Flow3.68B2.93B2.57B2.18B1.62B
Investing Cash Flow-2.18B-1.96B-1.89B-2.99B119.70M
Financing Cash Flow-852.49M-1.06B-771.99M5.83M-397.84M

W. R. Berkley Corporation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price68.81
Price Trends
50DMA
71.28
Negative
100DMA
69.58
Negative
200DMA
64.47
Positive
Market Momentum
MACD
-0.75
Negative
RSI
44.66
Neutral
STOCH
74.92
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 68.81 is below the 20-day moving average (MA) of 68.96, below the 50-day MA of 71.28, and above the 200-day MA of 64.47, indicating a neutral trend. The MACD of -0.75 indicates Negative momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of 74.92 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 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 (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
84
Outperform
$26.10B15.6720.63%2.30%11.40%15.32%
77
Outperform
$23.07B12.8013.44%2.28%9.64%-15.08%
73
Outperform
$25.60B14.7913.23%1.66%8.51%
68
Neutral
$12.04B13.558.98%8.57%6.34%-28.19%
67
Neutral
$17.78B11.609.11%3.88%10.92%-3.96%
66
Neutral
$10.43B13.1218.51%7.37%3.76%-9.12%
66
Neutral
$19.11B14.977.95%0.28%9.02%-9.73%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WRB
W. R. Berkley Corporation
68.81
15.37
28.76%
AFG
American Financial Group
124.90
4.69
3.90%
CINF
Cincinnati Financial
147.51
20.60
16.23%
CNA
CNA Financial
44.33
-1.09
-2.40%
L
Loews
90.54
11.57
14.65%
MKL
Markel
2,008.29
441.91
28.21%

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.

The most recent analyst rating on (WRB) stock is a Hold with a $69.00 price target. To see the full list of analyst forecasts on W. R. Berkley Corporation stock, see the WRB Stock Forecast page.

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: Jul 23, 2025