W.R. Berkley Gears Up to Report Q2 Earnings: What's in the Cards?

W.R. Berkley Corporation WRB is expected to register an improvement in its top line but a decline in its bottom line when it reports second-quarter 2025 results on July 21, after market close.

The Zacks Consensus Estimate for WRB’s second-quarter revenues is pegged at $3.45 billion, indicating 2.4% growth from the year-ago reported figure. The consensus estimate for earnings is pegged at $1.03 per share. The Zacks Consensus Estimate for WRB’s second-quarter earnings has moved down 2.8% in the past 30 days. The estimate suggests a year-over-year decrease of 0.9%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for W.R. Berkley this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below:

Earnings ESP: W.R. Berkley has an Earnings ESP of -1.20%. This is because the Most Accurate Estimate of $1.02 is pegged lower than the Zacks Consensus Estimate of $1.03. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. 

W.R. Berkley Corporation Price and EPS Surprise

W.R. Berkley Corporation price-eps-surprise | W.R. Berkley Corporation Quote

Zacks Rank: W.R. Berkley currently carries a Zacks Rank #3.  

Factors to Consider

Gross premiums written in the Insurance segment are likely to have benefited from the well-performing other liability, short-tail lines, professional liability, workers' compensation and commercial auto. We expect the metric to be $3.5 billion, indicating an increase of 6.2% from the year-ago reported number.

Reinsurance & Monoline Excess segment’s gross premiums written are expected to have improved, banking on well-performing monoline excess and property reinsurance. We expect the metric to be $412.9 million, suggesting a rise of 15.7% from the year-ago reported number.  

The Zacks Consensus Estimate for second-quarter 2025 premiums earned is pegged at $3 billion, indicating an increase of 7.8% from the year-ago reported quarter. Our estimate for the metric is pegged at $3 billion, indicating a 7.3% upside from the year-ago reported number.

The rise in income from investment funds, primarily due to transportation funds and financial services funds, and an increase in real estate are likely to have aided net investment income. The Zacks Consensus Estimate for second-quarter 2025 net investment income is pegged at $358 million, indicating a decrease of 3.7% from the year-ago reported quarter. We estimate the metric to be $358.4 million.

Improvement in premiums, coupled with higher investment income, is likely to have aided the top line in the to-be-reported quarter. 

Higher losses and loss expenses, other operating costs and expenses, and expenses from non-insurance businesses are likely to have increased costs. We expect total expenses to increase 7.6% to $3 billion.

Growth in net premiums earned and a non-recurring benefit associated with compensation costs are likely to have contributed to the improved expense ratio. We estimate the metric to be 27.58 in the to-be-reported quarter. 

Better pricing and increased exposure, coupled with prudent underwriting, are expected to have aided underwriting profitability, which, in turn, is likely to have led to an improvement in the combined ratio. The Zacks Consensus Estimate and our estimate for the combined ratio are both pegged at 91.

Continued share buybacks are likely to have provided additional support to the bottom line.

Stocks to Consider

Here are three P&C insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Chubb Limited CB has an Earnings ESP of +1.11% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $5.85, indicating a year-over-year increase of 8.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

CB’s earnings beat estimates in each of the last four reported quarters. 

Kinsale Capital Group, Inc. KNSL has an Earnings ESP of +1.03% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.41, indicating a year-over-year increase of 17.6%. 

KNSL’s earnings beat estimates in each of the last four reported quarters.

RenaissanceRe Holdings Ltd. RNR has an Earnings ESP of +2.76% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $9.98, indicating a year-over-year decrease of 19.5%. 

RNR’s earnings beat estimates in three of the last four reported quarters and missed in one. 

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This article originally published on Zacks Investment Research (zacks.com).

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