W. R. Berkley Corporation (WRB) shares are trading at a premium to the Zacks Property and Casualty Insurance industry. Its price-to-book value of 2.77X is higher than the industry average of 1.56X.WRB, one of the nation’s largest commercial lines property casualty insurance providers, has a market capitalization of $23.2 billion. The average volume of shares traded in the last three months was 1.8 million. Image Source: Zacks Investment ResearchOther insurers, such as Arch Capital Group (ACGL) , CNA Financi ...

Shares of WR Berkley Corp WRB have gained more than 7% over the past month after the company reported in late October upbeat third-quarter earnings.The company is poised to benefit from continued strong casualty pricing increases well into 2025, according to Goldman Sachs.Analyst Robert Cox upgraded the rating for WR Berkley from Neutral to Buy, while keeping the price target at $69.The Thesis: The company is likely to continue earning insurance pricing higher than the claim cost trend, resulting in margin ...

It has been about a month since the last earnings report for W.R. Berkley (WRB) . Shares have added about 2.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is W.R. Berkley due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. W.R. Berkley's Q3 Earnings Surpass Estimates ...

Company Performance - W.R. Berkley (WRB) shares have increased by 15.8% over the past six months, outperforming the industry growth of 12.5% and the S&P 500 index return of 14.7% [1][2] - The stock is currently priced at $60.42, slightly below its 52-week high of $61.96, with a market capitalization of $23.02 billion and an average trading volume of 1.77 million shares over the last three months [1][2] Financial Metrics - The Zacks Consensus Estimate projects a 20.7% year-over-year increase in WRB's earnings per share for 2024, with revenues expected to reach $13.56 billion, reflecting a 12% year-over-year improvement [5] - Earnings have grown by 24.3% over the past five years, surpassing the industry average of 11.4%, with a long-term earnings growth rate expected at 12.7% [6] Growth Drivers - The company's growth is attributed to higher premiums, lower claims frequency in certain business lines, effective capital deployment, and sufficient liquidity [2][9] - The insurance business is well-positioned for growth due to increased premiums from various lines, including workers' compensation and commercial automobile [7][8] Investment Strategy - WRB has a solid balance sheet with strong cash flows, enabling effective capital deployment through share repurchases and dividend increases [11][12] - The company approved a 9.1% increase in its quarterly dividend in June 2024, continuing a trend of annual increases since 2005 [12] Market Position - WRB is recognized as one of the largest commercial line property and casualty insurance providers, with a favorable VGM Score of B, indicating attractive value, growth, and momentum [3][9] - The stock is trading above its 50-day and 200-day simple moving averages, suggesting solid upward momentum [4]

Shares of W. R. Berkley (NYSE: WRB ) have been a solid performer over the past year, gaining about 27%. However, shares have declined about 7% from their recent high after reporting in-line Q3 results, as its elevated valuation left limited room for error. I last coveredOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question ...

W. R. Berkley Corporation WRB reported better-than-expected earnings for its third quarter on Monday.The company posted quarterly earnings of 93 cents per share which beat the analyst consensus estimate of 92 cents per share. The company reported quarterly sales of $3.400 billion which missed the analyst consensus estimate of $3.444 billion.WR Berkley shares fell 4.7% to trade at $58.14 on Tuesday.These analysts made changes to their price targets on WR Berkley following earnings announcement.Evercore ISI G ...

W.R. Berkley Corporation’s (WRB) third-quarter 2024 operating income of 93 cents per share beat the Zacks Consensus Estimate by 1.1%. The bottom line improved 3.3% year over year.The insurer benefited from continued strong underwriting and investment income.Behind the HeadlinesW.R. Berkley’s net premiums written were a record $3.1 billion, up 7.3% year over year. Our estimate was also $3.1 billion.Operating revenues came in at $3.4 billion, up 10.9% year over year, on the back of higher net premiums earned ...

Financial Data and Key Metrics Changes - The company reported a record third quarter net income of $366 million, an increase of almost 10% year-over-year, contributing to a nine-month record net income of approximately $1.2 billion [8] - Return on equity was strong at 20% for the quarter and over 21% year-to-date [8] - The calendar year combined ratio was 90.9%, including 3.3 loss ratio points from catastrophic events, and 87.6% on an accident year ex-CAT basis [9] - Stockholders' equity surpassed $8 billion for the first time, reaching over $8.4 billion, driven by strong earnings and improvements in after-tax unrealized investment losses [13] Business Line Data and Key Metrics Changes - Net premiums written exceeded $3 billion for the second consecutive quarter, with net premiums earned increasing by 10.8% year-over-year [9] - Current accident year underwriting income, excluding CATs, rose 13.4% to $362 million pre-tax [10] - The expense ratio increased by 20 basis points to 28.5%, attributed to changes in business mix and reinsurance structures [10] Market Data and Key Metrics Changes - The company noted a significant amount of natural catastrophe activity impacting the insurance industry, particularly in the fourth quarter [4] - The growth in the specialty space, particularly the excess and surplus (E&S) market, was highlighted as a key opportunity due to challenges in the standard market [6][7] Company Strategy and Development Direction - The company is focused on maintaining underwriting discipline while capitalizing on opportunities in the non-admitted market, particularly in the E&S space [6][7] - Investments in technology and data are ongoing to drive efficiencies and improve customer experience, despite the associated costs [16] - The company aims to grow at an annual rate of 10% to 15%, with expectations of exceeding this in some quarters [28][57] Management's Comments on Operating Environment and Future Outlook - Management expressed awareness of the challenges posed by climate change and social inflation, which are impacting loss cost trends in the insurance industry [6] - The company anticipates continued improvement in underwriting margins due to rate increases that are expected to keep pace with trends [22][57] - The effective tax rate for the quarter was 23%, with expectations for the fourth quarter to remain in the high 23% to 24% range [12][47] Other Important Information - The company reported record operating cash flow of $1.25 billion for the quarter, contributing to a year-to-date cash flow of almost $2.9 billion [12] - Foreign currency losses of $25 million were noted due to the weakening of the US dollar against other currencies [12] Q&A Session Summary Question: Any movement within insurance versus reinsurance in terms of prior year reserve development? - Management indicated negligible movement, with $3 million favorable on insurance and $2 million adverse on reinsurance [24][25] Question: What went on within the premiums within insurance ex-workers' comp in the quarter? - Management noted that the auto-lines and excess/umbrella lines were significantly impacted, with expectations of the market catching up to their pricing strategies [26][27] Question: What is the outlook for premium growth? - Management believes the company can achieve 10% to 15% growth annually, with potential fluctuations in quarterly performance [28][57] Question: Any thoughts on the loss trend in insurance today? - Management stated that they are focused on maintaining rate adequacy and are currently exceeding trend levels [30][31] Question: How is the company positioned regarding the recent hurricanes? - Management indicated it is too early to assess the market's pricing reaction, but they are monitoring the situation closely [33][34] Question: What is the company's view on capital and share buybacks? - Management confirmed a comfortable surplus of capital and indicated a willingness to return capital to shareholders while maintaining a strong balance sheet [60][61]

Core Insights - W.R. Berkley reported revenue of $3.41 billion for Q3 2024, reflecting a year-over-year increase of 10.9% [1] - The company's EPS for the quarter was $0.93, up from $0.90 in the same quarter last year, with a positive surprise of +1.09% compared to the consensus estimate [1] Financial Performance Metrics - Combined Ratio: 90.9%, better than the average estimate of 92% [1] - Expense Ratio: 28.5%, lower than the average estimate of 29.1% [1] - Loss Ratio (Insurance Segment): 63.1%, slightly above the average estimate of 62.9% [1] - Total Loss Ratio: 62.4%, compared to the average estimate of 63% [1] - Net Investment Income: $323.76 million, below the average estimate of $343.06 million, but a year-over-year increase of +19.5% [1] - Revenues from Non-Insurance Businesses: $128.61 million, lower than the estimated $143.38 million, representing a year-over-year decrease of -6.2% [1] - Net Premiums Earned: $2.93 billion, slightly above the average estimate of $2.92 billion, with a year-over-year increase of +10.8% [1] - Other Income: $0.61 million, exceeding the average estimate of $0.35 million, with a significant year-over-year increase of +376.6% [1] - Insurance Service Fees: $28.67 million, above the average estimate of $24.67 million, reflecting a year-over-year increase of +24.8% [1] - Net Realized Gains on Investment Sales: -$23.36 million, significantly below the average estimate of $15.39 million, with a year-over-year decline of -42.8% [1] - Net Premiums Earned (Reinsurance & Monoline Excess): $362.33 million, exceeding the average estimate of $331.14 million, with a year-over-year increase of +12.4% [1] - Net Premiums Earned (Insurance): $2.56 billion, slightly below the average estimate of $2.57 billion, with a year-over-year increase of +10.6% [1] Stock Performance - W.R. Berkley shares have returned +6.6% over the past month, outperforming the Zacks S&P 500 composite's +4.5% change [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [2]

W.R. Berkley (WRB) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.92 per share. This compares to earnings of $0.90 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.09%. A quarter ago, it was expected that this insurance company would post earnings of $0.92 per share when it actually produced earnings of $1.04, delivering a surprise of 13.04%.Over the last four quarters, the com ...