A month has gone by since the last earnings report for W.R. Berkley (WRB). Shares have added about 6.5% 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? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for W.R. Berkley Corporation before we dive into how investors and analysts have reacted as of late.
W.R. Berkley Q4 Earnings Miss Estimate, Revenues Up Y/Y
W.R. Berkley Corporation’s fourth-quarter 2025 operating income of $1.13 per share missed the Zacks Consensus Estimate by 0.9%. The bottom line remained flat year over year. The insurer benefited from higher premiums and revenues from non-insurance businesses.
Behind the Headlines
W.R. Berkley’s net premiums written were about $3 billion, up 2.1% year over year. The figure was lower than our estimate as well as the Zacks Consensus Estimate of $3.2 billion. Operating revenues totalled $3.7 billion, up 5.9% year over year, driven by higher net premiums earned, improved net investment income, higher revenues from non-insurance businesses and increased other income. However, the top line missed the consensus estimate by 0.9%.
Net investment income grew 6.6% to $338.2 million, driven by strong contributions to total return from net unrealized gains on the equity portfolio. However, the figure fell short of our estimate of $362 million. The consensus estimate was $384 million.
Total expenses increased 7.2% to $3.1 billion, caused by higher losses and loss expenses, other operating costs and expenses, and expenses from non-insurance businesses. This was almost in line with our estimate of $3.2 billion. The loss ratio decreased 60 basis points (bps) to 61.2, while the expense ratio improved 20 bps year over year to 28.2.
Catastrophe losses of $47.6 million were lower than the $79.6 million incurred in the year-ago quarter. Pre-tax underwriting income grew 14.9% to $338 million.
The consolidated combined ratio (a measure of underwriting profitability) improved 80 basis points year over year to 89.4, missing the Zacks Consensus Estimate of 90.
Segment Details
Net premiums written at the Insurance segment increased 1.7% year over year to $2.7 billion in the quarter, primarily due to higher premiums from other liability, short-tail lines, auto and professional liability. The figure was lower than our estimate of $2.9 billion. The combined ratio deteriorated 10 basis points year over year to 90.6. Our estimate was 89.
Net premiums written in the Reinsurance & Monoline Excess segment increased 5.4% year over year to $333.8 million. The figure was higher than our estimate of $324.1 million. The combined ratio deteriorated 740 bps to 81, which matched the Zacks Consensus Estimate. Our estimate was 89.
Full-Year Highlights
Operating income of $4.33 per share beat the Zacks Consensus Estimate by 1.6%. The bottom line improved 4.6% year over year. Operating revenues amounted to $14.6 billion, up 7.8% year over year on the back of higher net premiums earned as well as improved net investment income and increased insurance service fees and other income as well as revenues from non-insurance businesses. The top line was in line with the consensus estimate.
Net investment income grew 7.2% year over year to a record $1.4 billion. W.R. Berkley’s net premiums written totaled $12.7 billion, up 6.2% year over year. The Zacks estimates was pegged at 12.9 billion. Pre-tax underwriting income was $1.2 billion. The consolidated combined ratio was 90.7, which deteriorated 40 bps year over year.
Financial Update
W.R. Berkley exited 2025 with total assets worth $44.1 billion compared with $40.6 billion a year ago. Senior notes and other debt slipped 0.1% from 2024-end levels to $1.8 billion. Book value per share increased 16.4% from 2024-end levels to $25.72 as of Dec. 31, 2025. Cash flow from operations was $3.6 billion in 2025, down 2.6% year over year. Operating return on equity in 2025 declined 120 basis points year over year to 20.6%.
Capital Deployment
Total capital returned to shareholders was $970.5 million, comprising $567.6 million in special dividends, $270.2 million in share repurchases and $132.7 million in regular dividends.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates review.
VGM Scores
Currently, W.R. Berkley has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
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 this revision indicates a downward shift. It's no surprise W.R. Berkley has a Zacks Rank #4 (Sell). We expect a below average 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 8.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Travelers reported revenues of $12.45 billion in the last reported quarter, representing a year-over-year change of +3.2%. EPS of $11.13 for the same period compares with $9.15 a year ago.
Travelers is expected to post earnings of $6.90 per share for the current quarter, representing a year-over-year change of +261.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
Travelers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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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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