Key Takeaways Fed cut rates by 25 bps to 4-4.25%, its first reduction since Dec 2024, with two more cuts expected in 2025.Global commercial insurance rates fell 4% in Q2 2025. Heavy investments in blockchain, telematics, and insurtech boost efficiency and long-term profitability. The Zacks Property and Casualty Insurance industry is placed within the top 17% of the 245 Zacks industries. It currently carries a Zack Industry Rank #42. The insurers remain well-poised for growth, riding on better pricing, prude ...

  W. R. Berkley Corporation (WRB), headquartered in Greenwich, Connecticut, is an insurance holding company that operates as a commercial line writer. Valued at $27.1 billion by market cap, the company offers property casualty insurance and reinsurance products. More News from Barchart Companies worth $10 billion or more are generally described as “large-cap stocks,” and WRB perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within t ...

GREENWICH, Conn.--(BUSINESS WIRE)--W. R. Berkley Corporation (NYSE: WRB) announced today that its Board of Directors has declared a regular quarterly cash dividend on its common stock of 9 cents per share to be paid on September 30, 2025 to stockholders of record at the close of business on September 22, 2025. Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates two segments of the propert. ...

Key Takeaways WRB focuses on commercial lines, including excess & surplus, admitted, and specialty personal lines. WRB's growth drivers include diversification, reserving discipline, and alternative asset investments.WRB's dividend yield of 0.5% exceeds the industry average of 0.2%. Shares of W.R. Berkley Corporation (WRB) have gained 26.6% in the past year, outperforming its industry, the Finance sector, and the Zacks S&P 500 composite’s growth of 7.6%, 18.5% and 18.9%, respectively. W.R. Berkley has outpe ...

Core Viewpoint - W.R. Berkley Corporation has shown positive performance in its recent earnings report, with operating income surpassing estimates, but there are signs of downward trends in estimates and scores indicating potential challenges ahead [2][11][12]. Financial Performance - The second-quarter 2025 operating income was $1.05 per share, exceeding the Zacks Consensus Estimate of $1.03 per share, marking a 1% year-over-year increase [2]. - Net premiums written reached $3.4 billion, reflecting a 9.9% year-over-year growth, although it fell short of the estimated $3.6 billion [3]. - Operating revenues totaled $3.6 billion, up 7.9% year over year, beating the consensus estimate by 1.8% [3]. - Net investment income grew by 1.9% to $379.3 million, driven by higher yields on the domestic fixed-maturity portfolio [4]. - Total expenses increased by 11.4% to $3.1 billion, primarily due to higher losses and loss expenses [5]. Underwriting and Loss Ratios - The loss ratio deteriorated by 50 basis points to 63.1, while the expense ratio remained flat at 28.3 [5]. - Catastrophe losses amounted to $99.2 million, higher than the $89.7 million from the previous year [5]. - The consolidated combined ratio, a measure of underwriting profitability, worsened by 50 basis points to 92.1 [5]. Segment Performance - The Insurance segment's net premiums written increased by 7.2% year over year to $3 billion, driven by higher premiums across various lines [6]. - The Reinsurance & Monoline Excess segment saw a 6.8% year-over-year increase in net premiums written to $337.7 million, although it was below the estimated $367.1 million [7]. Financial Position - As of June 30, 2025, total assets were valued at $42.7 billion, a 5.5% increase from year-end 2024 [8]. - Book value per share rose by 6.8% to $24.50 [8]. - Cash flow from operations for the first half of 2025 was $1.5 billion, down 11.1% year over year [9]. Market Outlook - There has been a downward trend in estimates for W.R. Berkley, with a Zacks Rank of 3 (Hold) indicating expectations for an in-line return in the coming months [11][13]. - The company currently holds a subpar Growth Score of D and a Momentum Score of F, with an aggregate VGM Score of F [12]. Industry Comparison - W.R. Berkley is part of the Zacks Insurance - Property and Casualty industry, where Travelers reported a revenue increase of 6.7% year over year, indicating competitive performance within the sector [14].

Core Insights - W.R. Berkley Corporation (WRB) shares have increased by 23.6% over the past year, outperforming the Finance sector and the Zacks S&P 500 composite, which grew by 20.4% and 20.3% respectively [1] - The company has a market capitalization of $26.78 billion and an average trading volume of 1.8 million shares over the last three months [1] Valuation - WRB shares are trading at a price-to-book value of 2.88X, which is above the industry average of 1.42X, indicating a premium valuation [2] - Other insurers like Arch Capital Group Ltd., The Travelers Companies, Inc., and Cincinnati Financial Corporation are also trading at a premium to the industry [2] Technical Analysis - WRB shares closed at $70.63, close to its 52-week high of $76.38, indicating strong investor confidence [3] - The stock is trading above the 200-day simple moving average (SMA) of $65.40, suggesting solid upward momentum [3] Business Focus and Growth Drivers - WRB focuses on commercial lines, including excess & surplus, admitted, and specialty personal lines, which are key growth areas [6][11] - The company is expected to see a year-over-year earnings per share increase of 2.1% in 2025, with revenues projected to reach $14.60 billion, reflecting an 8% improvement [7] - Earnings have grown by 27.8% over the past five years, outperforming the industry average of 20.9% [8] Financial Performance - Return on equity for the trailing 12 months stands at 18.8%, significantly higher than the industry average of 7.6% [9] - Return on invested capital (ROIC) has been increasing, currently at 8.8%, compared to the industry average of 5.8% [10] Strategic Expansion - WRB is expanding selectively in attractive global markets, including the UK, Continental Europe, South America, Canada, Scandinavia, Asia, and Australia [13] - The company has maintained over 60 consecutive quarters of favorable reserve development due to prudent underwriting practices [13] Dividend and Cash Flow - WRB has a dividend yield of 0.5%, which is above the industry average of 0.2%, making it appealing for yield-seeking investors [6][16] - The company has consistently increased dividends since 2005 and has also engaged in share buybacks [16]

Part I — FINANCIAL INFORMATION This section presents the unaudited consolidated financial statements, including balance sheets, income statements, and cash flows, with detailed accounting notes [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Provides consolidated financial statements, including balance sheets, income statements, and cash flows, with extensive notes on accounting policies [Consolidated Balance Sheets](index=4&type=section&id=W.%20R.%20BERKLEY%20CORPORATION%20AND%20SUBSIDIARIES%20CONSOLIDATED%20BALANCE%20SHEETS) Presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Consolidated Balance Sheet Highlights (In thousands) | Item | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Total assets | $42,658,057 | $40,448,635 | | Total liabilities | $33,353,249 | $32,041,196 | | Total equity | $9,304,808 | $8,407,439 | | Reserves for losses and loss expenses | $21,496,123 | $20,368,030 | | Unearned premiums | $6,818,407 | $6,375,112 | [Consolidated Statements of Income](index=6&type=section&id=W.%20R.%20BERKLEY%20CORPORATION%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20%28UNAUDITED%29) Details the company's revenues, expenses, and net income for the reported periods Consolidated Statements of Income Highlights (In thousands, except per share data) | Item | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net premiums earned | $3,098,185 | $2,846,415 | $6,110,566 | $5,610,762 | | Net investment income | $379,303 | $372,129 | $739,595 | $691,967 | | Net investment gains (losses) | $30,973 | $(58,512) | $47,328 | $(32,733) | | Total revenues | $3,670,808 | $3,314,032 | $7,218,207 | $6,570,805 | | Total operating costs and expenses | $3,148,945 | $2,826,359 | $6,157,738 | $5,509,061 | | Net income to common stockholders | $401,288 | $371,909 | $818,860 | $814,380 | | Basic EPS | $1.01 | $0.93 | $2.06 | $2.03 | | Diluted EPS | $1.00 | $0.92 | $2.05 | $2.01 | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=W.%20R.%20BERKLEY%20CORPORATION%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20%28UNAUDITED%29) Reports net income and other comprehensive income items, reflecting changes in equity not from transactions with owners Consolidated Statements of Comprehensive Income Highlights (In thousands) | Item | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net income before noncontrolling interests | $400,708 | $371,885 | $818,058 | $813,920 | | Change in unrealized currency translation adjustments | $69,418 | $3,227 | $93,348 | $(24,343) | | Change in unrealized investment gains (losses), net of taxes | $120,265 | $(13,338) | $268,538 | $(83,460) | | Other comprehensive income (loss) | $189,683 | $(10,111) | $361,886 | $(107,803) | | Comprehensive income to common stockholders | $590,971 | $361,797 | $1,180,747 | $706,576 | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=W.%20R.%20BERKLEY%20CORPORATION%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY%20%28UNAUDITED%29) Outlines changes in stockholders' equity, including retained earnings, net income, dividends, and treasury stock Consolidated Statements of Stockholders' Equity Highlights (In thousands) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Retained earnings, beginning of period | $12,265,070 | $11,040,908 | | Net income to common stockholders | $818,860 | $814,380 | | Dividends paid | $(254,175) | $(185,721) | | Accumulated other comprehensive loss, end of period | $(572,384) | $(1,033,640) | | Treasury stock, end of period | $(4,126,967) | $(4,007,742) | [Consolidated Statements of Cash Flows](index=9&type=section&id=W.%20R.%20BERKLEY%20CORPORATION%20AND%20SUBSIDIARIES%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20%28UNAUDITED%29) Summarizes cash inflows and outflows from operating, investing, and financing activities for the reported periods Consolidated Statements of Cash Flows Highlights (In thousands) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Net cash from operating activities | $1,447,624 | $1,627,565 | | Net cash used in investing activities | $(1,158,631) | $(992,305) | | Net cash used in financing activities | $(313,124) | $(408,121) | | Net change in cash and cash equivalents | $9,782 | $217,075 | | Cash and cash equivalents at end of period | $1,984,529 | $1,580,270 | [Notes to Interim Consolidated Financial Statements](index=10&type=section&id=W.%20R.%20Berkley%20Corporation%20and%20Subsidiaries%20NOTES%20TO%20INTERIM%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20%28UNAUDITED%29) Provides detailed explanations of accounting policies, estimates, and specific financial line items in the interim statements [(1) General](index=10&type=section&id=%281%29%20General) Outlines the basis of financial statement preparation and the effective income tax rate considerations - The financial statements are unaudited and prepared under U.S. GAAP for interim reporting, including normal recurring adjustments and management estimates[22](index=22&type=chunk)[23](index=23&type=chunk) - The effective income tax rate is higher than the federal rate of **21%** due to geographical earnings mix and state taxes, partially offset by tax-exempt investment income[24](index=24&type=chunk) [(2) Per Share Data](index=10&type=section&id=%282%29%20Per%20Share%20Data) Explains the calculation of basic and diluted earnings per share and related share counts - Basic EPS is calculated by dividing net income by weighted average common shares outstanding, including shares in a grantor trust for vested RSUs[25](index=25&type=chunk) Weighted Average Common Shares (In thousands) | Type | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :--- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic | 397,016 | 400,273 | 396,972 | 401,295 | | Diluted | 400,368 | 403,737 | 400,098 | 404,679 | [(3) Recent Accounting Pronouncements and Accounting Policies](index=10&type=section&id=%283%29%20Recent%20Accounting%20Pronouncements%20and%20Accounting%20Policies) Discusses the impact of new accounting standards and the company's accounting policies - All accounting standards effective in **2025** had no material impact on the Company[27](index=27&type=chunk) - New guidance (ASU **2023-09**) on income tax disclosures, primarily related to rate reconciliation and taxes paid, is effective for annual periods beginning after December **15**, **2024**[29](index=29&type=chunk) [(4) Consolidated Statements of Comprehensive Income (Loss)](index=12&type=section&id=%284%29%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) Details changes in accumulated other comprehensive income (loss) for the reported periods Changes in Accumulated Other Comprehensive Income (Loss) (AOCI) (In thousands) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | | AOCI, Beginning of period | $(934,269) | $(925,838) | | Other comprehensive income (loss) | $361,886 | $(107,803) | | AOCI, End of period | $(572,384) | $(1,033,640) | [(5) Statements of Cash Flows](index=13&type=section&id=%285%29%20Statements%20of%20Cash%20Flows) Provides additional details on cash payments for interest and income taxes Cash Payments (In thousands) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------- | :--------------------------- | :--------------------------- | | Interest payments | $63,228 | $63,051 | | Income tax payments | $164,260 | $165,739 | [(6) Investments in Fixed Maturity Securities](index=14&type=section&id=%286%29%20Investments%20in%20Fixed%20Maturity%20Securities) Presents the carrying value and credit loss allowances for fixed maturity securities Fixed Maturity Securities (In thousands) | Item | June 30, 2025 (Carrying Value) | December 31, 2024 (Carrying Value) | | :----------------------------------- | :------------------------------- | :------------------------------- | | Total held to maturity | $30,051 | $44,412 | | Total available for sale | $24,063,105 | $22,353,453 | | Total investments in fixed maturity securities | $24,093,156 | $22,397,865 | | Allowance for expected credit losses (June 30, 2025) | $332 | | | Allowance for expected credit losses (December 31, 2024) | | $671 | - The allowance for expected credit losses for available-for-sale securities decreased in H1 **2025** due to improved pricing of mortgage-backed securities[41](index=41&type=chunk) [(7) Investments in Equity Securities](index=17&type=section&id=%287%29%20Investments%20in%20Equity%20Securities) Details the fair value of the company's equity securities portfolio Equity Securities (In thousands) | Item | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :------------------- | :--------------------------- | :--------------------------- | | Common stocks | $719,570 | $760,167 | | Preferred stocks | $542,622 | $443,621 | | Total equity securities | $1,262,192 | $1,203,788 | [(8) Arbitrage Trading Account](index=17&type=section&id=%288%29%20Arbitrage%20Trading%20Account) Describes the fair value and risk mitigation strategies for the arbitrage trading account - The arbitrage trading account's fair value was **$1,035 million** at June **30**, **2025**, down from **$1,123 million** at December **31**, **2024**[46](index=46&type=chunk) - The company uses put and call options to mitigate market risk in the merger arbitrage trading account, with long option contracts at **$5 million** and short option contracts at **$31 million** fair value as of June **30**, **2025**[47](index=47&type=chunk) [(9) Net Investment Income](index=17&type=section&id=%289%29%20Net%20Investment%20Income) Breaks down net investment income by source, including fixed maturity securities and investment funds Net Investment Income (In thousands) | Source | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Fixed maturity securities, etc. | $322,518 | $324,136 | $636,306 | $659,384 | | Investment funds | $27,268 | $25,476 | $54,291 | $(3,873) | | Arbitrage trading account | $23,672 | $16,682 | $40,001 | $34,693 | | Equity securities | $12,485 | $12,386 | $23,126 | $23,721 | | Real estate | $(4,092) | $(3,705) | $(8,109) | $(16,868) | | Gross investment income | $381,851 | $374,975 | $745,615 | $697,057 | | Net investment income | $379,303 | $372,129 | $739,595 | $691,967 | [(10) Investment Funds](index=18&type=section&id=%2810%29%20Investment%20Funds) Details the carrying value of investment funds by category and related transactions - The Company is not the primary beneficiary of its investment funds and accounts for them using the equity method[49](index=49&type=chunk) Investment Funds Carrying Value (In thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------- | :-------------- | :---------------- | | Financial services | $434,518 | $430,163 | | Transportation | $276,904 | $286,426 | | Real Estate | $181,509 | $178,685 | | Infrastructure | $161,019 | $151,560 | | Energy | $42,193 | $42,776 | | Other funds | $396,115 | $378,636 | | Total | $1,492,258 | $1,468,246 | - The Company ceded approximately **$362 million** in written premiums to Lifson Re (a minority investment in financial services funds) in H1 **2025**, up from **$206 million** in H1 **2024**[51](index=51&type=chunk) [(11) Real Estate](index=18&type=section&id=%2811%29%20Real%20Estate) Presents the carrying value of real estate investments and projected rental income Real Estate Investments (In thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Properties in operation | $1,066,361 | $1,063,687 | | Properties under development | $228,144 | $227,768 | | Total | $1,294,505 | $1,291,455 | - Future minimum rental income from operating leases is projected to be **$17.99 million** in **2025**, **$37.37 million** in **2026**, and **$411.07 million** thereafter[54](index=54&type=chunk) [(12) Loans Receivable](index=19&type=section&id=%2812%29%20Loans%20Receivable) Details the amortized cost and credit loss allowances for loans receivable Loans Receivable (In thousands) | Category | June 30, 2025 (Amortized Cost) | December 31, 2024 (Amortized Cost) | | :------------------- | :------------------------------- | :------------------------------- | | Real estate loans | $320,309 | $402,382 | | Commercial loans | $4,056 | $3,071 | | Total | $324,365 | $405,453 | - The allowance for expected credit losses for loans receivable decreased in H1 **2025** due to the redemption of one loan and a decrease in the weighted average life of the remaining portfolio[56](index=56&type=chunk) [(13) Net Investment Gains](index=22&type=section&id=%2813%29%20Net%20Investment%20Gains) Summarizes net realized and unrealized investment gains and losses, including credit loss changes Net Investment Gains (Losses) (In thousands) | Item | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net realized and unrealized gains (losses) on investments | $30,533 | $(60,306) | $46,244 | $(48,803) | | Change in allowance for expected credit losses on investments | $440 | $1,794 | $1,084 | $16,070 | | Net investment gains (losses) | $30,973 | $(58,512) | $47,328 | $(32,733) | | After-tax net investment gains (losses) | $24,288 | $(46,111) | $37,115 | $(26,964) | [(14) Fixed Maturity Securities in an Unrealized Loss Position](index=23&type=section&id=%2814%29%20Fixed%20Maturity%20Securities%20in%20an%20Unrealized%20Loss%20Position) Analyzes fixed maturity securities with unrealized losses, assessing their credit quality and recovery expectations Fixed Maturity Securities in Unrealized Loss Position (In thousands) | Item | June 30, 2025 (Fair Value) | June 30, 2025 (Gross Unrealized Losses) | December 31, 2024 (Fair Value) | December 31, 2024 (Gross Unrealized Losses) | | :----------------------------------- | :--------------------------- | :------------------------------- | :--------------------------- | :------------------------------- | | Total fixed maturity securities | $8,826,857 | $521,660 | $12,547,868 | $708,728 | - Substantially all securities in an unrealized loss position are investment grade, except for foreign government securities, where a significant portion of the loss is due to currency exchange rates[63](index=63&type=chunk) - The company believes unrealized losses are primarily due to temporary market and sector-related factors, not issuer-specific credit issues, and expects issuers to meet contractual obligations[65](index=65&type=chunk) [(15) Fair Value Measurements](index=24&type=section&id=%2815%29%20Fair%20Value%20Measurements) Explains the categorization of fair value measurements and provides a breakdown of assets by fair value level - Fair value measurements are categorized into Level **1** (quoted prices in active markets), Level **2** (observable inputs other than quoted prices), and Level **3** (unobservable inputs)[66](index=66&type=chunk)[67](index=67&type=chunk) - Substantially all fixed maturity securities are priced by independent pricing services based on observable market data and classified as Level **2**[68](index=68&type=chunk)[168](index=168&type=chunk) Assets Measured at Fair Value (In thousands) | Item | June 30, 2025 (Total) | June 30, 2025 (Level 1) | June 30, 2025 (Level 2) | June 30, 2025 (Level 3) | | :----------------------------------- | :-------------------- | :-------------------- | :-------------------- | :-------------------- | | Total fixed maturity securities available for sale | $24,063,105 | $0 | $24,043,129 | $19,976 | | Total equity securities | $1,262,192 | $716,561 | $534,806 | $10,825 | | Arbitrage trading account | $1,034,557 | $905,421 | $125,391 | $3,745 | | Total | $26,359,854 | $1,621,982 | $24,703,326 | $34,546 | [(16) Reserves for Loss and Loss Expenses](index=27&type=section&id=%2816%29%20Reserves%20for%20Loss%20and%20Loss%20Expenses) Discusses the estimation of loss reserves, key actuarial assumptions, and prior year development - Loss reserves are management's best estimates based on actuarial techniques (e.g., paid/incurred loss development, Bornhuetter-Ferguson) and qualitative factors like re-underwriting initiatives and business mix changes[75](index=75&type=chunk)[76](index=76&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - Key assumptions include expected loss ratios, loss cost inflation, and reported/paid loss emergence patterns, with greater uncertainty for long-tail lines and assumed reinsurance[77](index=77&type=chunk)[79](index=79&type=chunk)[135](index=135&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk) Net Reserves for Losses and Loss Expenses (In thousands) | Item | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Insurance segment | $14,815,570 | $13,881,574 | | Reinsurance & Monoline Excess segment | $3,402,454 | $3,285,067 | | Total Net reserves | $18,218,024 | $17,166,641 | | Total Gross reserves | $21,496,123 | $20,368,030 | - For H1 **2025**, **favorable prior year development** (net of premiums) was **$1 million**, with **$20 million** favorable for Reinsurance & Monoline Excess (assumed property) largely offset by **$19 million adverse** for Insurance (other liability, commercial auto liability due to social inflation)[84](index=84&type=chunk)[85](index=85&type=chunk)[87](index=87&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[149](index=149&type=chunk) [(17) Fair Value of Financial Instruments](index=29&type=section&id=%2817%29%20Fair%20Value%20of%20Financial%20Instruments) Presents the carrying and fair values of various financial instruments, including debt and debentures Fair Value of Financial Instruments (In thousands) | Item | June 30, 2025 (Carrying Value) | June 30, 2025 (Fair Value) | December 31, 2024 (Carrying Value) | December 31, 2024 (Fair Value) | | :----------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Fixed maturity securities | $24,093,156 | $24,094,270 | $22,397,865 | $22,399,426 | | Equity securities | $1,262,192 | $1,262,192 | $1,203,788 | $1,203,788 | | Loans receivable | $324,365 | $324,699 | $405,453 | $405,248 | | Senior notes and other debt | $1,831,638 | $1,438,943 | $1,831,158 | $1,425,852 | | Subordinated debentures | $1,010,168 | $766,884 | $1,009,808 | $805,864 | - Fair values for loans receivable, senior notes, and subordinated debentures are estimated using current institutional purchaser yield requirements or spreads for similar securities, classified as Level **2** inputs[93](index=93&type=chunk) [(18) Premiums and Reinsurance Related Information](index=30&type=section&id=%2818%29%20Premiums%20and%20Reinsurance%20Related%20Information) Details net premiums written and earned, ceded losses, and credit loss allowances for reinsurance receivables Premiums and Reinsurance (In thousands) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Total net premiums written | $6,484,742 | $5,978,070 | | Total net premiums earned | $6,110,566 | $5,610,762 | | Ceded losses and loss expenses incurred | $669,175 | $633,194 | | Ceded commissions earned | $275,523 | $244,701 | - Allowance for expected credit losses on premiums and fees receivable decreased from **$39.88 million** to **$38.96 million** in H1 **2025**[94](index=94&type=chunk) - Allowance for expected credit losses associated with due from reinsurers decreased from **$8.35 million** to **$6.95 million** in H1 **2025**[95](index=95&type=chunk) [(19) Restricted Stock Units](index=31&type=section&id=%2819%29%20Restricted%20Stock%20Units) Describes the vesting and expense recognition for restricted stock units issued - RSUs generally vest three to five years from the award date and are expensed pro-ratably over the vesting period[97](index=97&type=chunk) Restricted Stock Units (RSUs) Issued | Year | Units (in thousands) | Fair Value (in thousands) | | :--- | :------------------- | :------------------------ | | 2025 | 20,995 | $1,235 | | 2024 | 2,277 | $125 | [(20) Litigation and Contingent Liabilities](index=31&type=section&id=%2820%29%20Litigation%20and%20Contingent%20Liabilities) Outlines ongoing legal disputes and contingent liabilities, primarily related to insurance claims - The company is subject to disputes and litigation in the ordinary course of business, generally related to insurance and reinsurance claims[98](index=98&type=chunk) - A subsidiary filed a lawsuit to recover over **$90 million** from reinsurers for event cancellation losses, with a positive resolution expected and no material impact on financial condition[99](index=99&type=chunk) [(21) Leases](index=31&type=section&id=%2821%29%20Leases) Details the company's operating lease assets, liabilities, and associated costs - The company recognizes right-of-use assets and lease liabilities for operating leases over **12 months**, primarily for office space[100](index=100&type=chunk)[102](index=102&type=chunk) Lease Information (In thousands) | Item | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | | Lease cost | $25,998 | $22,403 | | Right-of-use assets (June 30, 2025) | $210,884 | | | Lease liabilities (June 30, 2025) | $249,189 | | | Weighted-average remaining lease term (June 30, 2025) | 7.3 years | | | Weighted-average discount rate (June 30, 2025) | 5.82% | | [(22) Business Segments](index=33&type=section&id=%2822%29%20Business%20Segments) Provides financial performance and net premiums earned for the company's Insurance and Reinsurance segments - The company operates in two main segments: Insurance (commercial, excess & surplus, specialty personal lines globally) and Reinsurance & Monoline Excess (facultative and treaty reinsurance, excess risk retention)[105](index=105&type=chunk)[109](index=109&type=chunk) Segment Pre-Tax Income (Loss) (In thousands) | Segment | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------- | :--------------------------- | :--------------------------- | | Insurance | $1,022,177 | $968,202 | | Reinsurance & Monoline Excess | $247,679 | $252,074 | | Corporate, other and eliminations | $(256,715) | $(125,799) | | Net investment gains (losses) | $47,328 | $(32,733) | | Total | $1,060,469 | $1,061,744 | Net Premiums Earned by Major Line of Business (In thousands) | Line of Business | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :----------------------------------- | :--------------------------- | :--------------------------- | | **Insurance:** | | | | Other liability | $2,177,060 | $1,969,247 | | Short-tail lines | $1,216,096 | $1,049,606 | | Auto | $795,581 | $715,593 | | Workers' compensation | $629,910 | $612,060 | | Professional liability | $552,644 | $536,832 | | **Reinsurance & Monoline Excess:** | | | | Casualty | $366,670 | $396,924 | | Property | $233,979 | $199,638 | | Monoline excess | $138,626 | $130,862 | | **Total** | $6,110,566 | $5,610,762 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition, operational results, key profitability drivers, and critical accounting estimates for recent periods [Overview](index=37&type=section&id=Overview) Provides an overview of the company's business model, profitability drivers, and strategic approach to market opportunities - W. R. Berkley Corporation is a decentralized insurance holding company specializing in commercial lines and reinsurance globally[121](index=121&type=chunk) - Profitability is driven by adequate premium rates (influenced by claim severity/frequency, disasters, regulations, economic inflation) and investment income (primarily from fixed maturity securities, also equity, arbitrage, funds, loans, real estate)[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk) - The company's strategy includes forming new operating units to capitalize on business opportunities in various sectors and international markets[122](index=122&type=chunk) [Critical Accounting Estimates](index=37&type=section&id=Critical%20Accounting%20Estimates) Highlights key accounting estimates, particularly loss reserves and credit loss allowances, and the methodologies used for their determination - Reserves for losses and loss expenses are critical estimates, involving complex and subjective judgments due to the time lag between loss occurrence and payment, and are subject to revision[128](index=128&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - The company uses various actuarial techniques (e.g., paid/incurred loss development, Bornhuetter-Ferguson) and qualitative factors to estimate loss reserves, with key assumptions including expected loss ratios, loss cost inflation, and emergence patterns[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) - Allowance for expected credit losses on fixed maturity securities and loans receivable is estimated using a third-party model based on collateral performance under various economic and default scenarios[159](index=159&type=chunk)[160](index=160&type=chunk) [Results of Operations for the Six Months Ended June 30, 2025 and 2024](index=45&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Analyzes the company's consolidated financial performance for the six-month periods, including key revenue, expense, and profitability metrics Consolidated Financial Performance (6 Months Ended June 30) | Item | 2025 | 2024 | Change (YoY) | | :----------------------------------- | :----------- | :----------- | :----------- | | Net income to common stockholders | $818,860 | $814,380 | +$4,480 | | Diluted EPS | $2.05 | $2.01 | +$0.04 | | Gross premiums written | $7,661,708 | $7,080,528 | +8.2% | | Net premiums written | $6,484,742 | $5,978,070 | +8.5% | | Net premiums earned | $6,110,566 | $5,610,762 | +8.9% | | GAAP combined ratio | 91.3% | 90.0% | +1.3 pts | | Net investment income | $739,595 | $691,967 | +6.9% | | Net realized and unrealized gains (losses) on investments | $46,244 | $(48,803) | +$95,047 | | Catastrophe losses (net of reinsurance) | $210,000 | $120,000 | +$90,000 | | Favorable prior year reserve development (net of premium offsets) | $1,000 | $2,000 | -$1,000 | | Effective income tax rate | 22.9% | 23.3% | -0.4 pts | - The increase in net income was primarily driven by higher net investment gains (mainly unrealized gains on equity securities) and net investment income, partially offset by increased foreign currency losses and higher catastrophe losses[174](index=174&type=chunk) - Average renewal premium rates for insurance and facultative reinsurance increased by **7.0%** (**7.9%** excluding workers' compensation) in **2025**[176](index=176&type=chunk) [Results of Operations for the Three Months Ended June 30, 2025 and 2024](index=50&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) Analyzes the company's consolidated financial performance for the three-month periods, including key revenue, expense, and profitability metrics Consolidated Financial Performance (3 Months Ended June 30) | Item | 2025 | 2024 | Change (YoY) | | :----------------------------------- | :----------- | :----------- | :----------- | | Net income to common stockholders | $401,288 | $371,909 | +$29,379 | | Diluted EPS | $1.00 | $0.92 | +$0.08 | | Gross premiums written | $3,977,769 | $3,717,772 | +7.0% | | Net premiums written | $3,351,439 | $3,126,779 | +7.2% | | Net premiums earned | $3,098,185 | $2,846,415 | +8.8% | | GAAP combined ratio | 91.6% | 91.1% | +0.5 pts | | Net investment income | $379,303 | $372,129 | +1.9% | | Net realized and unrealized gains (losses) on investments | $30,533 | $(60,306) | +$90,839 | | Catastrophe losses (net of reinsurance) | $99,000 | $90,000 | +$9,000 | | Favorable prior year reserve development (net of premium offsets) | $1,000 | $1,000 | No change | | Effective income tax rate | 23.2% | 23.7% | -0.5 pts | - The increase in net income was primarily due to higher net investment gains (mainly unrealized gains on equity securities) and net investment income, partially offset by increased foreign currency losses[195](index=195&type=chunk) - Average renewal premium rates for insurance and facultative reinsurance increased by **6.7%** (**7.6%** excluding workers' compensation) in **2025**[196](index=196&type=chunk) [Investments](index=54&type=section&id=Investments) Details the company's investment strategy, portfolio composition, and management of interest rate risk - The company's investment strategy focuses on maintaining liquidity, matching asset and liability durations, and maximizing total return across fixed maturity securities, equity securities, investment funds, real estate, arbitrage trading, and loans receivable[215](index=215&type=chunk)[216](index=216&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[226](index=226&type=chunk) Investment Portfolio Composition (June 30, 2025, In thousands) | Asset Class | Carrying Value | Percent of Total | | :----------------------------------- | :------------- | :--------------- | | Fixed maturity securities | $24,093,156 | 76.3% | | Equity securities | $1,262,192 | 4.0% | | Cash and cash equivalents | $2,076,351 | 6.6% | | Investment funds | $1,492,258 | 4.7% | | Real estate | $1,294,505 | 4.1% | | Arbitrage trading account | $1,034,557 | 3.3% | | Loans receivable | $324,365 | 1.0% | | **Total investments** | **$31,577,384** | **100.0%** | - The effective duration of the fixed maturity portfolio was **2.8 years** at June **30**, **2025**, up from **2.6 years** at December **31**, **2024**, reflecting efforts to manage interest rate risk[216](index=216&type=chunk)[226](index=226&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's cash flow, investment liquidity, capital structure, and share repurchase activities - Cash flow from operating activities decreased to **$1,448 million** in H1 **2025** from **$1,628 million** in H1 **2024**, primarily due to increased loss payments offset by higher premium receipts[228](index=228&type=chunk) - The investment portfolio is highly liquid, with approximately **83%** in cash, cash equivalents, and marketable fixed maturity securities as of June **30**, **2025**, ensuring funds for claim payments[229](index=229&type=chunk) Debt and Equity Highlights (In millions) | Item | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :------------ | :---------------- | | Total common stockholders' equity | $9,300 | $8,400 | | Common shares outstanding | 379,385,332 | 380,066,070 | | Total capitalization (equity, debt, subordinated debentures) | $12,100 | $11,200 | | Percentage of capital from senior notes, subordinated debentures, and other debt | 23% | 25% | - The company repurchased **850,000** common shares for **$49 million** during H1 **2025**[232](index=232&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) Refers to market risk disclosures, including credit quality, interest rates, and currency risk, detailed in the Investments section - Market risk disclosures, including those related to credit quality, interest rates, and currency risk, are detailed in the "Investments - Market Risk" section of the MD&A[235](index=235&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and the absence of material changes in internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June **30**, **2025**[236](index=236&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June **30**, **2025**[237](index=237&type=chunk) PART II — OTHER INFORMATION Provides additional information not covered in Part I, including legal proceedings, risk factors, and exhibits [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note **20** for details on legal proceedings, primarily related to insurance and reinsurance claims - Legal proceedings information is detailed in Note **20** to the interim consolidated financial statements[238](index=238&type=chunk) [Item 1A. Risk Factors](index=57&type=section&id=Item%201A.%20Risk%20Factors) States that no material changes to previously disclosed risk factors have occurred since the last annual report - No material changes to risk factors have occurred since the Annual Report on Form **10-K** for FY**2024**[239](index=239&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports no share repurchases during the quarter and the unchanged authorized repurchase amount - The company did not repurchase any shares during the three months ended June **30**, **2025**[240](index=240&type=chunk) - The number of shares authorized for repurchase remained at **13,308,928**[240](index=240&type=chunk) [Item 5. Other Information](index=57&type=section&id=Item%205.%20Other%20Information) States that no directors or officers adopted, modified, or terminated Rule **10b5-1** or non-Rule **10b5-1** trading arrangements - No directors or officers adopted, modified, or terminated Rule **10b5-1** or non-Rule **10b5-1** trading arrangements during Q2 **2025**[241](index=241&type=chunk) [Item 6. Exhibits](index=58&type=section&id=Item%206.%20Exhibits) Lists the exhibits filed with the Form **10-Q**, including corporate documents and certifications - Exhibits include the Company's Restated Certificate of Incorporation and certifications from the CEO and CFO[242](index=242&type=chunk) SIGNATURES Contains the signatures of the President, CEO, and CFO, certifying the report's filing - The report is signed by W. Robert Berkley, Jr., President and Chief Executive Officer, and Richard M. Baio, Executive Vice President - Chief Financial Officer[245](index=245&type=chunk)

Core Viewpoint - W.R. Berkley (NYSE: WRB) has shown strong performance over the past year, with a 31% increase in stock value, but has recently experienced a 10% decline from its peak, indicating potential investment opportunities due to strong operating results and strategic investments [1] Group 1 - The stock of W.R. Berkley has added 31% over the past year [1] - The stock has lost approximately 10% from its recent high [1] - There is a suggestion that good news from strong operating results and strategic investments could present a favorable investment opportunity [1]

Core Insights - W.R. Berkley Corporation's second-quarter 2025 operating income was $1.05 per share, surpassing the Zacks Consensus Estimate of $1.03 per share, with a year-over-year increase of approximately 1% [1][8] - The company experienced higher underwriting gains and improved investment income despite facing above-average industry catastrophe losses during the quarter [1] Premiums and Revenue - Net premiums written reached $3.4 billion, reflecting a year-over-year increase of 9.9%, although this was below the estimated $3.6 billion [2] - Operating revenues totaled $3.6 billion, up 7.9% year over year, driven by higher net premiums earned and improved net investment income, exceeding the consensus estimate by 1.8% [2] Investment Income - Net investment income grew by 1.9% to $379.3 million, attributed to higher yields on an expanding domestic fixed-maturity portfolio, surpassing both the estimate of $358.5 million and the Zacks Consensus Estimate of $358 million [3] Expenses and Loss Ratios - Total expenses increased by 11.4% to $3.1 billion, primarily due to higher losses and loss expenses, exceeding the estimate of $3 billion [4] - The loss ratio deteriorated by 50 basis points to 63.1, while the expense ratio remained flat at 28.3 [4] - Catastrophe losses amounted to $99.2 million, higher than the $89.7 million from the previous year, contributing to a consolidated combined ratio of 92.1, which deteriorated by 50 basis points year over year [4][8] Segment Performance - In the Insurance segment, net premiums written increased by 7.2% year over year to $3 billion, driven by higher premiums from various lines [5] - The combined ratio for the Insurance segment deteriorated by 30 basis points to 92.1, slightly better than the Zacks Consensus Estimate of 93 [5] - The Reinsurance & Monoline Excess segment saw net premiums written rise by 6.8% year over year to $337.7 million, although this was below the estimate of $367.1 million, with a combined ratio deteriorating by 630 basis points to 87 [6] Financial Position - As of June 30, 2025, W.R. Berkley had total assets of $42.7 billion, a 5.5% increase from year-end 2024, with senior notes and other debt remaining flat at $1.8 billion [7] - Book value per share increased by 6.8% from the end of 2024 to $24.50 [7] Cash Flow and Shareholder Returns - Cash flow from operations for the first half of 2025 was $1.5 billion, down 11.1% year over year [9] - The company returned $223.8 million to shareholders, which included $189.7 million in special dividends and $34.1 million in ordinary dividends [9]

Core Insights - W.R. Berkley reported $3.64 billion in revenue for Q2 2025, a year-over-year increase of 7.9% and exceeding the Zacks Consensus Estimate of $3.57 billion by 1.83% [1] - The company's EPS for the same period was $1.05, slightly up from $1.04 a year ago, and also surpassed the consensus estimate of $1.03 by 1.94% [1] Financial Performance Metrics - The total expense ratio was reported at 28.5%, slightly above the average estimate of 28.4% [4] - The total loss ratio was 63.1%, matching the average estimate [4] - The combined ratio was 91.6%, slightly higher than the average estimate of 91.4% [4] - Net investment income reached $379.3 million, exceeding the average estimate of $358.42 million, representing a year-over-year increase of 1.9% [4] - Revenues from non-insurance businesses were $128.84 million, slightly below the average estimate of $131.58 million, but still reflecting a year-over-year increase of 2.5% [4] - Net premiums earned totaled $3.1 billion, surpassing the average estimate of $3.07 billion, with a year-over-year change of 8.9% [4] - Insurance service fees were reported at $32.76 million, exceeding the average estimate of $28.05 million, marking an 18.7% year-over-year increase [4] - Net premiums earned in the reinsurance and monoline excess segment were $369.4 million, below the average estimate of $384.7 million, with a year-over-year change of 2.1% [4] - Net premiums earned in the insurance segment reached $2.73 billion, exceeding the average estimate of $2.67 billion, reflecting a 9.8% year-over-year increase [4] - Net realized gains on investment sales were reported at $30.53 million, significantly better than the estimated loss of $39.15 million, representing a -150.6% change year-over-year [4] - Other income was reported at $0.75 million, above the average estimate of $0.66 million, with a year-over-year increase of 7.6% [4] Stock Performance - W.R. Berkley shares have returned -6.8% over the past month, contrasting with the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]