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

• Market Cap: $26.67B
• Dividend Yield: 1.88%
• Average Volume (3M): 2.30M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.29
• Revenue Growth: 11.08%
• EPS Growth: 22.01%
• Country: US
• Employees: 8,606
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.13
• Shares Outstanding: 380,021,180
• 10 Day Avg. Volume: 2,916,150
• 30 Day Avg. Volume: 2,302,395
• 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: 1.02
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 8.81
• Enterprise Value/Ebitda: 10.76
• 1Y Price Target: $69.21
• Price Target Upside: -1.40% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): 4.57
• Revenue Forecast (FY): $13.02B

• Rating: 71 Outperform
• Price Target: $74.00 ▲(5.43% Upside)

Overall score is driven primarily by strong financial performance (profitability, ROE, manageable leverage) and a constructive earnings outlook with disciplined underwriting and capital returns. This is partially offset by weak technical momentum (below major moving averages and negative MACD). Valuation is supportive with a reasonable P/E and moderate dividend yield.

Positive Factors

Underwriting profitability & combined ratio

Sustained underwriting discipline produced record pretax underwriting income and sub-90% combined ratios, indicating durable margin advantage. This shows the firm can price, select and manage risk across niches, supporting steady underwriting profits through insurance cycles and protecting long-term ROE.

Cash generation and investment positioning

Robust operating cash flow and rising invested assets give durable funding for underwriting and capital returns. High cash generation lets the company reinvest maturing assets into higher yields, finance growth without excessive debt, and sustain shareholder distributions across market cycles.

Strategic partner stake and potential governance support

A sizable strategic stake from Mitsui Sumitomo creates a long-term commercial partner and potential governance alignment. This can deepen distribution access, provide reinsurance/market insights, and signal external confidence—strengthening capital stability and strategic optionality over multiple years.

Negative Factors

Prolonged auto liability weakness

Persistent deterioration in auto liability is structural, driven by severity, litigation and pricing gaps. Shrinking exposure protects near-term profitability but limits premium growth and diversification, forcing selective underwriting and potentially higher combined ratios in affected portfolios over several quarters.

Property/cat reinsurance rate compression

Sharp treaty rate declines reflect intense competition in property catastrophe reinsurance. Sustained price erosion reduces margin headroom for property/CAT business, pressures profitability, and can spill into casualty lines as insurers chase premium, requiring tighter underwriting to defend long-term returns.

Weakness in professional liability lines

Ongoing stress in D&O and architects & engineers coverage signals structural underwriting challenges and loss severity in specialty lines. These trends can necessitate higher reserves, reduce pricing leverage, and constrain growth unless remedied by stricter selection or higher rates, impacting multi-quarter earnings stability.

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

Strong profitability (net margin 13.01%, EBIT margin 17.49%) and solid balance sheet with moderate leverage (debt-to-equity 0.29) and strong ROE (20.94%). Cash flow is generally strong with high cash conversion (FCF to net income 98.01%), but recent FCF growth declined (-3.05% TTM) and gross margin has softened, indicating some pressure to monitor.

Income Statement

W. R. Berkley Corporation shows strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 2.58%. The company maintains healthy profitability with a net profit margin of 13.01% and an EBIT margin of 17.49%. However, the gross profit margin has slightly decreased compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.29, indicating moderate leverage. The return on equity is robust at 20.94%, showcasing effective use of equity capital. However, the equity ratio suggests a moderate reliance on debt financing.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -3.05% TTM, which could be a concern if it continues. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. The free cash flow to net income ratio remains high at 98.01%, reflecting efficient 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	2.52B	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	25.42B	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: 70.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 70.19 is above the 20-day moving average (MA) of 68.27, above the 50-day MA of 69.62, and below the 200-day MA of 70.94, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 58.03 is Neutral, neither overbought nor oversold. The STOCH value of 77.68 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	$25.90B	12.86	11.86%	―	-6.96%	-26.28%
CNA	79 Outperform	$13.40B	13.32	9.03%	8.03%	5.41%	-23.52%
CINF	76 Outperform	$26.36B	12.19	14.53%	2.10%	-0.63%	-30.68%
KNSL	75 Outperform	$9.51B	19.25	28.73%	0.17%	18.13%	15.69%
WRB	71 Outperform	$26.67B	15.55	19.67%	1.88%	11.08%	22.01%
AFG	69 Neutral	$10.52B	12.92	―	6.71%	―	-10.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

W. R. Berkley Corporation Corporate Events

Mitsui Sumitomo Acquires Stake in W. R. Berkley

On December 5, 2025, W. R. Berkley Corporation announced that Mitsui Sumitomo Insurance Co., Ltd. (MSI) has acquired beneficial ownership of at least 12.5% of the company’s outstanding common stock through agreements with the Berkley family. MSI’s shares will be voted according to the Berkley family’s recommendations, with the investment expected to be completed in the first quarter of 2026. This acquisition signifies a strategic partnership and potential influence on the company’s governance, highlighting MSI’s interest in expanding its presence in the U.S. insurance market.

The most recent analyst rating on (WRB) stock is a Sell with a $64.00 price target. To see the full list of analyst forecasts on W. R. Berkley Corporation stock, see the WRB Stock Forecast page.