A month has gone by since the last earnings report for W.R. Berkley (WRB). Shares have added about 3.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, 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 the most recent earnings report in order to get a better handle on the important drivers.
W.R. Berkley Q3 Earnings, Revenues Top on Solid Underwriting
W.R. Berkley Corporation's third-quarter 2025 operating income of $1.10 per share beat the Zacks Consensus Estimate of $1.03 per share by 2.8%. The bottom line increased 18.3% year over year. The insurer benefited from continued strength in both underwriting and investment income.
Behind the Headlines
W.R. Berkley’s net premiums written were $3.4 billion, up 5.5% year over year. Our estimate was $3.3 billion.
Net investment income grew 8.5% to $351.2 million, reflecting higher yields on an expanding fixed-maturity portfolio. The strength of operating cash flow continued to drive growth in net investable assets. Its current new money rates remained comfortably above average book yield, positioning WRB well for further investment income growth. Our estimate for investment income was $352.4 million. The Zacks Consensus Estimate was pegged at $364.9 million.
Operating revenues came in at $3.6 billion, up 8.2% year over year, on the back of higher net premiums earned, improved net investment income and higher insurance service fees. The top line beat the consensus estimate by 0.4%.
Total expenses increased 6.6% to $3.1 billion due to higher losses and loss expenses, operating costs, interest expense and expenses from non-insurance businesses. Our estimate was $3.1 billion. The loss ratio deteriorated 80 basis points (bps) to 63.9, while the expense ratio remained flat year over year at 28.4.
Catastrophe losses of $78.5 million in the quarter were narrower than $97.8 million incurred in the year-ago quarter. The consolidated combined ratio (a measure of underwriting profitability) remained flat year over year at 90.9. The Zacks Consensus Estimate was pegged at 89.6.
Segment Details
Net premiums written at the Insurance segment increased 5.1% year over year to $2.8 billion in the quarter, primarily due to higher premiums from other liability, short-tail lines, auto, workers' compensation and professional liability. Our estimate was $2.9 billion.
The combined ratio deteriorated 80 bps to 92.3. The Zacks Consensus Estimate was 88.9. Our estimate was 90.8.
Net premiums written in the Reinsurance & Monoline Excess segment increased 8.6% year over year to $417.1 million on higher premiums at Casualty, Property and Monoline excess. Our estimate was $425 million. The combined ratio improved 560 bps to 87. The Zacks Consensus Estimate was pegged at 89.3, whereas our estimate was 92.3.
Financial Update
W.R. Berkley exited the third quarter of 2025 with total assets worth $43.7 billion, up 8.1% from year-end 2024. Senior notes and other debt moved down 0.1% from 2024 end levels to $1.8 billion. Book value per share increased 16.7% from 2024 end level to $25.79 as of Sept, 30, 2025. Cash flow from operations was $1.1 billion in the third quarter of 2025, down 8.1% year over year. Operating return on equity contracted 10 bps to 21%. WRB bought back shares worth $24.6 million in the reported quarter.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
Currently, W.R. Berkley has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, W.R. Berkley has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
W.R. Berkley belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, Travelers (TRV), has gained 6.5% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Travelers reported revenues of $12.44 billion in the last reported quarter, representing a year-over-year change of +5%. EPS of $8.14 for the same period compares with $5.24 a year ago.
Travelers is expected to post earnings of $8.34 per share for the current quarter, representing a year-over-year change of -8.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.
Travelers has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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W.R. Berkley Corporation (WRB): Free Stock Analysis Report The Travelers Companies, Inc. (TRV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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