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

• Market Cap: $29.52B
• Dividend Yield: 1.72%
• Average Volume (3M): 3.10M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.26
• Revenue Growth: 11.08%
• EPS Growth: 22.01%
• Country: US
• Employees: 8,606
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.10
• Shares Outstanding: 380,021,180
• 10 Day Avg. Volume: 2,119,134
• 30 Day Avg. Volume: 3,095,183
• PEG Ratio: 0.46
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 1.72
• P/FCF Ratio: 6.55
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 2.30
• Enterprise Value/Gross Profit: 10.98
• Enterprise Value/Ebitda: 13.36
• 1Y Price Target: $74.18
• Price Target Upside: -4.52% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): 4.31
• Revenue Forecast (FY): $13.09B

• Rating: 79 Outperform
• Price Target: $88.00 ▲(13.27% Upside)

W. R. Berkley Corporation's strong financial performance and positive earnings call sentiment are the most significant factors contributing to the score. The technical analysis supports a bullish outlook, while the valuation is fair. Despite some market challenges, the company's robust growth and financial health position it well in the industry.

Positive Factors

Strong Financial Performance

A high return on equity indicates effective management and strong profitability, suggesting the company is using its capital efficiently to generate profits.

Investment Income Growth

Growth in investment income enhances overall profitability and provides a stable revenue stream, supporting long-term financial health.

Decentralized Structure and Niche Focus

A decentralized structure and niche market focus allow for flexibility and targeted growth, enhancing competitive advantage and market position.

Negative Factors

Commercial Auto Market Volatility

Volatility in the commercial auto market can lead to unpredictable financial results and may require adjustments in risk management strategies.

Eroding Property Cat Market

A weakening property cat market can pressure margins and profitability, potentially impacting the company's long-term financial performance.

Pressure on E&S Property Market

Pressure in the E&S property market may limit growth opportunities and affect the company's ability to maintain its competitive edge in this segment.

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

W. R. Berkley Corporation exhibits strong financial health with consistent revenue growth, solid profitability, and efficient operations. The balance sheet is stable with manageable leverage, and cash flow generation is robust despite recent challenges in free cash flow growth. Overall, the company is well-positioned in the insurance industry, with opportunities to enhance cash flow management.

Income Statement

W. R. Berkley Corporation shows strong revenue growth with a TTM revenue increase of 2.56% and consistent profitability. The gross profit margin remains stable, and the net profit margin is healthy at 12.32%. EBIT and EBITDA margins are robust, indicating efficient operations. The company has demonstrated consistent revenue growth over the years, reflecting a positive trajectory.

Balance Sheet

The balance sheet is solid with a manageable debt-to-equity ratio of 0.31, showing prudent financial leverage. Return on equity is strong at 20.10%, indicating effective use of equity capital. The equity ratio suggests a stable financial structure, although there is room for improvement in reducing debt further.

Cash Flow

Cash flow performance is stable, with a high operating cash flow to net income ratio of 5.43, indicating strong cash generation relative to earnings. However, the free cash flow growth rate is negative at -4.82%, suggesting potential challenges in cash flow management. The free cash flow to net income ratio remains healthy, reflecting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.65B	13.64B	12.14B	11.17B	9.46B	8.10B
Gross Profit	3.07B	3.12B	2.72B	2.44B	2.02B	1.35B
EBITDA	2.53B	2.22B	1.86B	1.91B	1.56B	990.40M
Net Income	1.91B	1.76B	1.38B	1.38B	1.02B	530.67M
Balance Sheet
Total Assets	43.72B	40.57B	37.20B	33.86B	32.10B	28.61B
Cash, Cash Equivalents and Short-Term Investments	27.32B	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	33.91B	32.16B	29.73B	27.09B	25.43B	22.28B
Stockholders Equity	9.80B	8.40B	7.46B	6.75B	6.65B	6.31B
Cash Flow
Free Cash Flow	3.33B	3.57B	2.88B	2.52B	2.12B	1.58B
Operating Cash Flow	3.40B	3.68B	2.93B	2.57B	2.18B	1.62B
Investing Cash Flow	-1.87B	-2.18B	-1.96B	-1.89B	-2.99B	119.70M
Financing Cash Flow	-698.93M	-852.49M	-1.06B	-771.99M	5.83M	-397.84M

W. R. Berkley Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.69
• 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 77.69 is above the 20-day moving average (MA) of 76.09, above the 50-day MA of 75.62, and above the 200-day MA of 70.71, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 60.70 is Neutral, neither overbought nor oversold. The STOCH value of 54.66 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
MKL	82 Outperform	$26.23B	13.02	11.86%	―	-6.96%	-26.28%
CINF	81 Outperform	$26.29B	12.54	14.53%	2.12%	-0.63%	-30.68%
WRB	79 Outperform	$29.52B	16.32	20.92%	1.72%	11.08%	22.01%
CNA	79 Outperform	$12.00B	12.12	9.03%	8.21%	5.41%	-23.52%
KNSL	74 Outperform	$8.95B	18.92	28.73%	0.18%	18.13%	15.69%
AFG	73 Outperform	$11.49B	14.44	16.91%	6.76%	―	-10.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

W. R. Berkley Corporation Corporate Events

W.R. Berkley Reports Strong Q3 Earnings Amid Market Challenges

The recent earnings call for W.R. Berkley Corporation painted a largely positive picture, highlighting robust financial performance and significant growth across various metrics. The company reported impressive gains in return on equity, net income, and investment income, alongside record stockholders’ equity and top line growth. Despite facing challenges in the commercial auto market, property cat market, and the excess and surplus property market, the overall sentiment was optimistic, driven by strong financial results and growth.

W. R. Berkley Reports Strong Q3 2025 Results

W. R. Berkley Corporation is a prominent insurance holding company specializing in commercial lines, operating globally in the property casualty sector with a focus on insurance and reinsurance. In its third quarter of 2025, the company reported a significant increase in net income by 39.8% to $511 million, alongside a robust return on equity of 24.3%. The company’s gross and net premiums written saw growth, reaching $3.8 billion and $3.2 billion, respectively. Notably, the company achieved a combined ratio of 90.9%, which includes catastrophe losses, while maintaining strong investment income growth of 9.4%. The company also reported a record common stockholders’ equity of $9.8 billion, reflecting a 5.8% increase in book value per share before dividends and repurchases. Looking forward, W. R. Berkley Corporation remains optimistic about its ability to generate exceptional shareholder value through its disciplined underwriting and strategic focus on niche markets, positioning itself well for continued success in 2025 and beyond.