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

• Market Cap: $27.13B
• Dividend Yield: 1.87%
• Average Volume (3M): 2.65M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.34
• Revenue Growth: 11.07%
• EPS Growth: 22.01%
• Country: US
• Employees: 8,606
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Property & Casualty
• EPS (TTM): 1.10
• Shares Outstanding: 379,292,800
• 10 Day Avg. Volume: 3,928,513
• 30 Day Avg. Volume: 2,646,436
• 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: 1.23
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 10.79
• Enterprise Value/Ebitda: 14.31
• 1Y Price Target: $74.50
• Price Target Upside: 4.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 77 Outperform
• Price Target: $82.00 ▲(14.62% Upside)

W. R. Berkley Corporation's overall stock score reflects its strong financial performance and positive earnings call sentiment. The company's stable profitability and growth in key financial metrics are significant strengths. However, technical indicators suggest short-term bearish trends, and valuation is fair but not undervalued. The absence of notable corporate events further solidifies the focus on financial and earnings performance.

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, which are collected from policyholders in exchange for coverage against various risks. Key revenue streams include premiums from commercial lines insurance, where the company assesses risks and sets prices accordingly. Additionally, WRB earns investment income from its portfolio of investments, which includes equities, fixed income securities, and real estate investments. Significant partnerships with brokers and agents enhance its distribution capabilities, while a focus on specialized insurance products allows the company to maximize profitability in niche markets. The company's disciplined underwriting approach and risk management strategies also contribute to its overall financial performance.

W. R. Berkley Corporation Financial Statement Overview

Summary

W. R. Berkley Corporation demonstrates strong financial performance with high profitability and growth metrics. The income statement shows excellent margins and revenue growth, while the balance sheet is robust with a debt-free position. Cash flow is strong, although there is a minor weakness in free cash flow growth.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.29B	13.64B	12.14B	11.17B	9.46B	8.10B
Gross Profit	3.10B	3.12B	2.72B	2.44B	2.02B	1.35B
EBITDA	2.34B	2.22B	1.86B	1.91B	1.56B	990.40M
Net Income	1.76B	1.76B	1.38B	1.38B	1.02B	530.67M
Balance Sheet
Total Assets	42.66B	40.57B	32.91B	33.88B	32.10B	34.93B
Cash, Cash Equivalents and Short-Term Investments	31.49B	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	33.35B	32.16B	25.44B	27.11B	25.43B	28.61B
Stockholders Equity	9.29B	8.40B	7.46B	6.75B	6.65B	6.31B
Cash Flow
Free Cash Flow	3.43B	3.57B	2.88B	2.52B	2.12B	1.58B
Operating Cash Flow	3.50B	3.68B	2.93B	2.57B	2.18B	1.62B
Investing Cash Flow	-2.35B	-2.18B	-1.96B	-1.89B	-2.99B	119.70M
Financing Cash Flow	-757.49M	-852.49M	-1.06B	-771.99M	5.83M	-397.84M

W. R. Berkley Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WRB, the sentiment is Negative. The current price of 71.54 is below the 20-day moving average (MA) of 75.46, below the 50-day MA of 74.06, and above the 200-day MA of 69.01, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 35.45 is Neutral, neither overbought nor oversold. The STOCH value of 20.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WRB.

W. R. Berkley Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WRB	―	$27.13B	14.99	20.92%	1.87%	11.07%	22.01%
MKL	―	$24.44B	12.13	11.86%	―	-6.96%	-26.28%
CINF	―	$24.08B	11.30	14.53%	2.22%	-0.63%	-30.68%
KNSL	―	$9.26B	19.83	28.73%	0.17%	18.13%	15.69%
AFG	―	$10.93B	14.24	17.17%	7.08%	3.35%	-14.16%
CNA	―	$12.07B	13.69	8.54%	8.56%	6.12%	-31.43%
Sector *	―	$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.