Financial Data and Key Metrics Changes - The company reported record quarterly operating earnings of $450 million, or $1.13 per share, representing a 9.5% increase over the prior year, with a 21.4% return on beginning of year equity [16] - Net income for the quarter was also $450 million, resulting in a 21.4% return on beginning of year equity [16] - The expense ratio improved to 28.2%, driven by record net premiums earned of $3.2 billion and operational efficiencies [17] - Strong operating cash flows of nearly $1 billion for the quarter contributed to an increase in invested assets, which grew 11.4% during 2025 to $33.2 billion [18] Business Line Data and Key Metrics Changes - The current accident year loss ratio, excluding catastrophe losses, was 59.7%, slightly better than the previous two quarters [17] - The reinsurance and monoline excess segment reported a current accident year loss ratio of 53.9%, resulting in a strong combined ratio of 83% [18] - The company experienced record top line gross and net premiums written of $15.1 billion and $12.7 billion, respectively, for the full year [23] Market Data and Key Metrics Changes - The auto liability market continues to be a challenge, with expectations that it may find a bottom by the end of 2026 [10] - The property reinsurance market is experiencing significant competition, with a risk-adjusted rate decrease of 19% noted [11] - The casualty market, particularly in smaller accounts and excess and umbrella markets, is showing opportunities for meaningful rate increases [14] Company Strategy and Development Direction - The company is focusing on technology adoption, particularly AI, to enhance operational efficiency and underwriting processes [8] - There is an emphasis on understanding customer behavior changes, with a shift towards self-service models and convenience over price [9] - The company is committed to maintaining a disciplined approach to capital management, returning $608 million to investors in Q4 [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to adapt to changing market conditions and technology advancements [7] - There are early signs of improvement in the workers' compensation market, particularly in California [15] - The company anticipates continued growth in 2026, particularly in the insurance business, while remaining cautious about the reinsurance market [121] Other Important Information - The effective tax rate for Q4 was 20.5%, benefiting from lower rates related to foreign earnings [20] - The company returned a total of $971 million to investors for the year, exceeding 10% of stockholders' equity [22] Q&A Session Summary Question: Premium growth expectations for 2026 - Management expects insurance activities to likely perform better than Q4, with a cautious outlook on reinsurance [35] Question: Expense ratio and investment year guidance - Significant investments in technology and AI are expected in 2026, with benefits anticipated in 2027 [37] Question: Medical inflation impact on workers' compensation - Medical costs in workers' compensation are expected to rise, with claims activity previously suppressed [44] Question: Pricing trends in casualty lines - Auto liability is being reduced in exposure due to unfavorable pricing trends, while other lines are being monitored [62] Question: Technology investments and efficiency - Investments in technology are aimed at improving efficiency and competitiveness, with potential savings being passed on to customers [91] Question: Impact of competition on premium growth - Management cautioned against overreacting to short-term premium growth fluctuations, noting potential for recovery [107]

W. R. Berkley (NYSE:WRB) Q4 2025 Earnings call January 26, 2026 05:00 PM ET Speaker12Ladies and gentlemen, thank you for joining us, and welcome to the W. R. Berkley Corporation fourth quarter and full year 2025 earnings call. This conference call is being recorded. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. The ...