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W. R. Berkley Corporation
(NYSE:WRB)
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Rating:80Outperform
Price Target:
$85.00
▲(23.78% Upside)
Action:Reiterated
Date:10/20/26
WRB scores well primarily on financial performance—accelerating growth, strong returns, and high-quality cash generation—supported by a positive technical setup with price above major moving averages and a positive MACD. Valuation is reasonable (mid-teens P/E with a ~2.5% yield). The earnings call was constructive but includes notable watch-items, particularly shrinking reinsurance exposure, property-market pressure, and commercial auto reserve uncertainty.
Positive Factors
Underwriting profitability
A sub-90% accident-year combined ratio excluding catastrophes indicates disciplined pricing, risk selection, and expense control. Record underwriting profit provides evidence that WRB’s specialty insurance model is generating durable operating earnings before investment income and can support continued capital deployment.
Negative Factors
Reinsurance contraction
A planned multi-year reduction in reinsurance exposure creates a persistent headwind for premium volume and limits that segment’s contribution to growth. Although the decision reflects unfavorable market conditions, shrinking participation may reduce diversification and require other insurance businesses to carry more growth responsibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Underwriting profitability
A sub-90% accident-year combined ratio excluding catastrophes indicates disciplined pricing, risk selection, and expense control. Record underwriting profit provides evidence that WRB’s specialty insurance model is generating durable operating earnings before investment income and can support continued capital deployment.
Read all positive factors
W. R. Berkley Corporation Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Reports pre‑tax profit generated by each business unit, highlighting which segments drive overall earnings and which drag on results. Watching segment-level earnings helps investors see how underwriting performance, investment returns, and expense allocation combine to affect Berkley’s bottom line.
Reports pre‑tax profit generated by each business unit, highlighting which segments drive overall earnings and which drag on results. Watching segment-level earnings helps investors see how underwriting performance, investment returns, and expense allocation combine to affect Berkley’s bottom line.
Data provided by:
The Fly
The FlyW. R. Berkley Corporation (WRB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.16B
Dividend Yield2.53%
Average Volume (3M)3.34M
Price to Earnings (P/E)15.7
Beta (1Y)0.22
Revenue Growth1.45%
EPS Growth-0.85%
CountryUS
Employees8,804
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)4.89
Shares Outstanding371,227,540
10 Day Avg. Volume2,411,867
30 Day Avg. Volume3,339,354
Financial Highlights & Ratios
PEG Ratio7.63
Price to Book (P/B)2.87
Price to Sales (P/S)1.89
P/FCF Ratio8.02
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue1.63
Enterprise Value/Gross Profit3.62
Enterprise Value/Ebitda11.76
Forecast
1Y Price Target
$70.23Price Target Upside2.27% Upside
Rating ConsensusHold
Number of Analyst Covering13
EPS Forecast (FY)4.95
Revenue Forecast (FY)$15.05B
W. R. Berkley Corporation Business Overview & Revenue Model
Company Description
W. R. Berkley Corporation functions as an insurance holding company, primarily underwriting commercial policies across the United States and globally. Its extensive operations are divided into two principal divisions: Insurance, and Reinsurance & ...
How the Company Makes Money
W. R. Berkley primarily makes money through (1) underwriting income from its insurance and reinsurance operations and (2) investment income generated from investing its insurance “float” (premiums collected before claims are paid).
1) Underwritin...
W. R. Berkley Corporation Earnings Call Summary
Earnings Call Date:Oct 19, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was broadly positive, supported by record underwriting profit, strong operating earnings, an 18.8% quarterly annualized operating ROE, improved loss ratios, growth in the Insurance segment, higher investment income, and technology-enabled efficiency gains. Management also expressed confidence in insurance growth, capital flexibility, and the portfolio's ability to benefit from higher reinvestment yields. The main challenges were declining reinsurance premiums, competitive and deteriorating reinsurance and property market conditions, commercial auto reserve pressure, uneven investment-fund income, lower cash flow, and uncertainty around loss trends and emerging AI-related exposures. Highlights significantly outweighed the lowlights.Positive Updates
Strong Quarterly Earnings and Return on Equity
Third-quarter operating earnings were $456 million, or $1.17 per share. Underwriting and investment performance contributed to an annualized operating return on equity of 18.8% for the quarter and more than 20% year-to-date.
Negative Updates
Reinsurance Premium Decline and Competitive Market Conditions
The Reinsurance & Monoline Excess segment's net premiums written declined 11.6% to $369 million, driven by casualty and, to a lesser extent, property. Management said it is dissatisfied with market conditions in casualty reinsurance and property, and expects the reinsurance business to continue shrinking at a rate of between 10% and 20% for the foreseeable future.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Quarterly Earnings and Return on Equity
Third-quarter operating earnings were $456 million, or $1.17 per share. Underwriting and investment performance contributed to an annualized operating return on equity of 18.8% for the quarter and more than 20% year-to-date.
Read all positive updates
Company Guidance
Management said the insurance business is expected to continue to grow “all in, barring the unforeseen event, at mid-single digits or better,” while the reinsurance business is “likely going to continue to shrink for the foreseeable at 10% rate, somewhere between 10% and 20%.” Investment funds are expected to generate “between $10 million to $20 million” each quarter, while the later expectation was “sort of $10 million to $15 million a quarter”; the domestic fixed income portfolio was “just inside of $24 billion,” with a book yield of “about 4.7 or so percent” and a new money rate “probably between 80 and 100 basis points above that.” Management said duration would continue to be nudged out from 3.3 years, with the life of loss reserves “just a hair inside of 4 years,” and said technology will help mitigate the expense ratio from ticking up, although “it does not mean it won't move up.”W. R. Berkley Corporation Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
78
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.01B | 14.71B | 13.64B | 12.14B | 11.17B | 9.46B |
| Gross Profit | 8.08B | 2.91B | 3.12B | 2.72B | 2.44B | 2.02B |
| EBITDA | 2.49B | 2.37B | 2.22B | 1.86B | 1.91B | 1.56B |
| Net Income | 1.93B | 1.78B | 1.76B | 1.38B | 1.38B | 1.02B |
Balance Sheet | ||||||
| Total Assets | 45.68B | 44.07B | 40.57B | 37.20B | 33.86B | 32.09B |
| Cash, Cash Equivalents and Short-Term Investments | 29.78B | 28.78B | 25.45B | 22.43B | 19.93B | 19.35B |
| Total Debt | 2.84B | 2.84B | 2.84B | 2.84B | 2.84B | 3.27B |
| Total Liabilities | 35.46B | 34.36B | 32.16B | 29.73B | 27.09B | 25.42B |
| Stockholders Equity | 10.20B | 9.70B | 8.40B | 7.46B | 6.75B | 6.65B |
Cash Flow | ||||||
| Free Cash Flow | 3.50B | 3.47B | 3.57B | 2.88B | 2.52B | 2.12B |
| Operating Cash Flow | 3.62B | 3.64B | 3.68B | 2.93B | 2.57B | 2.18B |
| Investing Cash Flow | -1.82B | -2.03B | -2.18B | -1.96B | -1.89B | -2.99B |
| Financing Cash Flow | -1.18B | -1.03B | -852.49M | -1.06B | -771.99M | 5.83M |
W. R. Berkley Corporation Technical Analysis
Positive
68.67
Price Trends
70.06
Positive
70.20
Positive
68.65
Positive
Market Momentum
1.47
Negative
68.52
Neutral
69.63
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 68.67 is below the 20-day moving average (MA) of 71.40, below the 50-day MA of 70.06, and above the 200-day MA of 68.65, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 68.52 is Neutral, neither overbought nor oversold. The STOCH value of 69.63 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 Risk Analysis
W. R. Berkley Corporation disclosed 32 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $136.94B | 12.33 | 15.06% | 1.12% | 5.77% | ― | |
83 Outperform | $8.47B | 15.21 | 29.06% | 0.24% | 15.82% | 28.42% | |
80 Outperform | $27.16B | 15.65 | 25.14% | 2.53% | 1.45% | -0.85% | |
78 Outperform | $81.76B | 10.30 | 26.24% | 1.18% | 1.07% | 50.02% | |
74 Outperform | $13.10B | 10.60 | 11.99% | 8.07% | 3.41% | 41.13% | |
73 Outperform | $23.34B | 10.25 | 12.39% | ― | 0.86% | 8.75% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
WRB
W. R. Berkley Corporation
75.55
2.35
3.21%
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TRV
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KNSL
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390.64
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-13.57%
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.