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W. R. Berkley Corporation (WRB)
NYSE:WRB
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W. R. Berkley Corporation
(NYSE:WRB)
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Select Model
Rating:73Outperform
Price Target:
$74.00
▲(5.38% Upside)
W. R. Berkley Corporation's overall stock score reflects strong financial performance and positive earnings call sentiment, which are the most significant factors. The technical analysis indicates bearish momentum, which is a concern, but the valuation is reasonable. The strategic corporate event adds a positive dimension to the company's future prospects.
Positive Factors
Strategic Partnership
The acquisition by Mitsui Sumitomo Insurance signifies a strategic partnership, potentially enhancing W. R. Berkley's market presence and governance.
Revenue Growth
Record growth in net premiums indicates strong demand for W. R. Berkley's insurance products, supporting long-term revenue expansion.
Investment Income Growth
Growth in investment income enhances profitability and provides a stable financial foundation, benefiting long-term financial health.
Negative Factors
Commercial Auto Market Volatility
Volatility in the commercial auto market poses risks to consistent underwriting profits, potentially impacting future earnings stability.
Eroding Property Cat Market
An eroding property cat market could pressure margins and profitability, challenging W. R. Berkley's ability to maintain its competitive edge.
Free Cash Flow Decline
Declining free cash flow growth may limit W. R. Berkley's ability to invest in growth opportunities, affecting long-term financial flexibility.
W. R. Berkley Corporation (WRB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.36B
Dividend Yield1.88%
Average Volume (3M)3.10M
Price to Earnings (P/E)14.6
Beta (1Y)0.27
Revenue Growth11.08%
EPS Growth22.01%
CountryUS
Employees8,606
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.10
Shares Outstanding380,021,180
10 Day Avg. Volume3,200,911
30 Day Avg. Volume3,102,423
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)2.79
Price to Sales (P/S)1.72
P/FCF Ratio6.55
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue1.91
Enterprise Value/Gross Profit9.12
Enterprise Value/Ebitda11.10
Forecast
1Y Price Target
$72.58Price Target Upside3.36% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)4.3
Revenue Forecast (FY)$13.09B
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 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 Earnings Call Summary
Earnings Call Date:Oct 20, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Positive
The earnings call for W.R. Berkley Corporation was largely positive, with strong financial performance, significant growth in return on equity, net income, and investment income. The company also reported record stockholders' equity and top line growth. However, challenges remain in the commercial auto market's volatility, eroding property cat market, and pressure on the excess and surplus property market. Despite these challenges, the overall sentiment leans positive due to the strong financial metrics and growth observed.Q3-2025 Updates
Positive Updates
Strong Return on Equity
The company achieved a return on beginning of year equity of 24.3%, reflecting an increase over the prior year's quarter of almost 40%.
Net Income Increase
Net income reached $511 million or $1.28 per share, with operating income increasing 12% over the same period to $440 million or $1.10 per share.
Growth in Investment Income
Pretax quarterly net investment income grew to $351 million, driven by an increase in the core portfolio of 9.4%.
Record Stockholders' Equity
Stockholders' equity reached a record of $9.8 billion, increasing 16.7% from the beginning of the year.
Top Line Growth
Quarterly net premiums earned reached a record of more than $3.2 billion, with net premiums written growing in all lines of business.
Negative Updates
Commercial Auto Market Volatility
The commercial auto market remains choppy, with inconsistent performance and exposure to social inflation.
Eroding Property Cat Market
The property cat market is eroding, with expectations of further softening at the 1/1 renewal.
Challenges in Casualty Lines
Adjustments in appetite based on legal environment, attachment points, and jurisdiction affecting casualty lines.
Pressure on E&S Property Market
Excess and surplus property market under pressure, particularly in property lines.
Company Guidance
During the W.R. Berkley Corporation Third Quarter 2025 Earnings Call, the company reported strong financial metrics. They achieved a return on beginning of year equity of 24.3%, a significant increase from the previous year, with net income reaching $511 million or $1.28 per share. Operating income rose by 12% to $440 million or $1.10 per share, yielding a 21% return on equity. The pretax quarterly underwriting income grew by 8.2% to $287 million, with a calendar year combined ratio of 90.9% and a current accident year combined ratio ex cat of 88.4%. Despite some challenges in the industry, the company reported a decline in cat losses to 2.5 loss ratio points, amounting to $79 million, compared to the previous year's 3.3 points or $98 million. W.R. Berkley saw record net premiums earned exceeding $3.2 billion, with gross and net premiums written at $3.8 billion and $3.2 billion, respectively. The company's pretax quarterly net investment income rose to $351 million, driven by a 9.4% increase in their core portfolio. The firm's financial position remained strong, with stockholders' equity reaching $9.8 billion and a financial leverage at historic low levels of 22.5%.W. R. Berkley Corporation Financial Statement Overview
Summary
W. R. Berkley Corporation demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is solid with manageable leverage, and cash flow generation remains robust despite recent declines in free cash flow growth. The company is well-positioned in the insurance industry, though it should monitor cost management to maintain margins.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.85
Very Positive
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.78
Positive
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.72
Positive
| 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
Neutral
70.22
Price Trends
72.51
Negative
72.15
Negative
70.28
Negative
Market Momentum
-1.19
Negative
47.77
Neutral
88.65
Negative
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 70.22 is below the 20-day moving average (MA) of 70.29, below the 50-day MA of 72.51, and below the 200-day MA of 70.28, indicating a bearish trend. The MACD of -1.19 indicates Negative momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 88.65 is Negative, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $27.32B | 13.66 | 11.86% | ― | -6.96% | -26.28% | |
79 Outperform | $12.84B | 12.96 | 9.03% | 8.10% | 5.41% | -23.52% | |
76 Outperform | $26.10B | 12.45 | 14.53% | 2.08% | -0.63% | -30.68% | |
75 Outperform | $9.29B | 19.62 | 28.73% | 0.17% | 18.13% | 15.69% | |
73 Outperform | $26.36B | 14.57 | 20.92% | 1.88% | 11.08% | 22.01% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $11.46B | 14.42 | 16.91% | 6.73% | ― | -10.75% |
* Financial Sector Average
WRB
W. R. Berkley Corporation
70.22
13.33
23.43%
AFG
American Financial Group
137.95
6.14
4.66%
CINF
Cincinnati Financial
166.96
27.28
19.53%
CNA
CNA Financial
47.83
2.87
6.38%
MKL
Markel
2,182.67
445.75
25.66%
KNSL
Kinsale Capital Group
399.44
-64.65
-13.93%
W. R. Berkley Corporation Corporate Events
M&A TransactionsBusiness Operations and Strategy
Mitsui Sumitomo Acquires Stake in W. R. Berkley
Positive
Dec 5, 2025
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.
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.