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W.R. Berkley Q2 Earnings and Revenues Surpass Estimates
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Key Takeaways
WRB's Q2 operating income of $1.05 per share beat the consensus estimate of $1.03 and rose 1% year over year.
Improved net investment income and higher premiums drove a 7.9% revenue increase to $3.6 billion.
Q2 catastrophe losses rose to $99.2M, pushing the combined ratio up 50 bps year over year to 92.1.
W.R. Berkley Corporation's (WRB - Free Report) second-quarter 2025 operating income of $1.05 per share beat the Zacks Consensus Estimate of $1.03 per share. The bottom line increased about 1% year over year.
The insurer benefited from higher underwriting gains and improved investment income, notwithstanding above-average industry catastrophe losses during the quarter.
Behind the Headlines
W.R. Berkley’s net premiums written were $3.4 billion, up 9.9% year over year. The figure was lower than our estimate of $3.6 billion.
Operating revenues came in at $3.6 billion, up 7.9% year over year, on the back of higher net premiums earned as well as improved net investment income, higher insurance service fees and other income. The top line beat the consensus estimate by 1.8%.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
Net investment income grew 1.9% to $379.3 million, reflecting higher yields on expanding domestic fixed-maturity portfolio. The strength of operating cash flow continues to drive growth in net investable assets. Its current new money rates remain comfortably above average book yield, positioning WRB well for further investment income growth. Our estimate was $358.5 million. The Zacks Consensus Estimate was pegged at $358 million.
Total expenses increased 11.4% to $3.1 billion due to higher losses and loss expenses. Our estimate was $3 billion. The loss ratio deteriorated 50 basis points (bps) to 63.1, while the expense ratio remained flat year over year at 28.3.
Catastrophe losses of $99.2 million in the quarter were wider than $89.7 million incurred in the year-ago quarter. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 50 bps year over year to 92.1. The Zacks Consensus Estimate was 91.
Segment Details
Net premiums written at the Insurance segment increased 7.2% year over year to $3 billion in the quarter, primarily due to higher premiums from other liability, short-tail lines, auto, workers' compensation and professional liability. Our estimate was $3 billion.
The combined ratio deteriorated 30 bps to 92.1. The Zacks Consensus Estimate was 93. Our estimate was 93.1.
Net premiums written in the Reinsurance & Monoline Excess segment increased 6.8% year over year to $337.7 million due to higher premiums at Casualty, Property and Monoline excess. The figure was lower than our estimate of $367.1 million. The combined ratio deteriorated 630 bps to 87. The Zacks Consensus Estimate was 81. Our estimate was 78.9.
Financial Update
W.R. Berkley exited the second quarter of 2025 with total assets worth $42.7 billion, up 5.5% from year-end 2024. Senior notes and other debt remained flat from 2024 end levels at $1.8 billion.
Book value per share increased 6.8% from 2024 end level to $24.50 as of June 30, 2025.
Cash flow from operations was $1.5 billion in the first half of 2025, down 11.1% year over year.
Operating return on equity contracted 200 bps to 20%.
WRB returned $223.8 million to shareholders, consisting of $189.7 million of special dividends and $34.1 million of ordinary dividends.
The Travelers Companies (TRV - Free Report) reported second-quarter 2025 core income of $6.51 per share, which beat the Zacks Consensus Estimate by 83.8%. Total revenues increased 6.7% from the year-ago quarter to $12.1 billion, primarily driven by higher premiums, improved net investment income, higher fee income and other revenues. The top-line figure, however, missed the Zacks Consensus Estimate by 0.7%.
Net written premiums increased 4% year over year to a record $11.5 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $10.9 billion.
Travelers witnessed an underwriting profit of $1 billion against a loss of $65 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 84.7 improved 300 bps year over year. The combined ratio improved 990 bps year over year to 90.3 due to lower catastrophe losses, an improvement in the underlying combined ratio and higher net favorable prior year reserve development. The Zacks Consensus Estimate was pegged at 99.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2025 earnings per share of $4.88 beat the Zacks Consensus Estimate by 10.1%. The bottom line increased 84.1% year over year. Net premiums written were $20 billion in the quarter, up 12% from $17.9 billion a year ago.
Net premiums earned grew 18% to $20.3 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.1 billion. Operating revenues increased 19.5% year over year to $42.2 billion, driven by 19% higher net premiums earned, a 29.3% increase in net investment income, an 18.9% rise in fees and 28% higher service revenues.
RLI Corp. (RLI - Free Report) reported second-quarter 2025 operating earnings of 84 cents share, beating the Zacks Consensus Estimate by 12%. The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year, driven by 6% higher net premiums earned and 16% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%.
Underwriting income of $62.2 million decreased 11.14% year over year. The combined ratio deteriorated 300 bps year over year to 84.5. The Zacks Consensus Estimate for the metric was pegged at 88, while our estimate was 42.9.
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W.R. Berkley Q2 Earnings and Revenues Surpass Estimates
Key Takeaways
W.R. Berkley Corporation's (WRB - Free Report) second-quarter 2025 operating income of $1.05 per share beat the Zacks Consensus Estimate of $1.03 per share. The bottom line increased about 1% year over year.
The insurer benefited from higher underwriting gains and improved investment income, notwithstanding above-average industry catastrophe losses during the quarter.
Behind the Headlines
W.R. Berkley’s net premiums written were $3.4 billion, up 9.9% year over year. The figure was lower than our estimate of $3.6 billion.
Operating revenues came in at $3.6 billion, up 7.9% year over year, on the back of higher net premiums earned as well as improved net investment income, higher insurance service fees and other income. The top line beat the consensus estimate by 1.8%.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
W.R. Berkley Corporation price-consensus-eps-surprise-chart | W.R. Berkley Corporation Quote
Net investment income grew 1.9% to $379.3 million, reflecting higher yields on expanding domestic fixed-maturity portfolio. The strength of operating cash flow continues to drive growth in net investable assets. Its current new money rates remain comfortably above average book yield, positioning WRB well for further investment income growth. Our estimate was $358.5 million. The Zacks Consensus Estimate was pegged at $358 million.
Total expenses increased 11.4% to $3.1 billion due to higher losses and loss expenses. Our estimate was $3 billion. The loss ratio deteriorated 50 basis points (bps) to 63.1, while the expense ratio remained flat year over year at 28.3.
Catastrophe losses of $99.2 million in the quarter were wider than $89.7 million incurred in the year-ago quarter. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 50 bps year over year to 92.1. The Zacks Consensus Estimate was 91.
Segment Details
Net premiums written at the Insurance segment increased 7.2% year over year to $3 billion in the quarter, primarily due to higher premiums from other liability, short-tail lines, auto, workers' compensation and professional liability. Our estimate was $3 billion.
The combined ratio deteriorated 30 bps to 92.1. The Zacks Consensus Estimate was 93. Our estimate was 93.1.
Net premiums written in the Reinsurance & Monoline Excess segment increased 6.8% year over year to $337.7 million due to higher premiums at Casualty, Property and Monoline excess. The figure was lower than our estimate of $367.1 million. The combined ratio deteriorated 630 bps to 87. The Zacks Consensus Estimate was 81. Our estimate was 78.9.
Financial Update
W.R. Berkley exited the second quarter of 2025 with total assets worth $42.7 billion, up 5.5% from year-end 2024. Senior notes and other debt remained flat from 2024 end levels at $1.8 billion.
Book value per share increased 6.8% from 2024 end level to $24.50 as of June 30, 2025.
Cash flow from operations was $1.5 billion in the first half of 2025, down 11.1% year over year.
Operating return on equity contracted 200 bps to 20%.
WRB returned $223.8 million to shareholders, consisting of $189.7 million of special dividends and $34.1 million of ordinary dividends.
WRB’s Zacks Rank
WRB currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies (TRV - Free Report) reported second-quarter 2025 core income of $6.51 per share, which beat the Zacks Consensus Estimate by 83.8%. Total revenues increased 6.7% from the year-ago quarter to $12.1 billion, primarily driven by higher premiums, improved net investment income, higher fee income and other revenues. The top-line figure, however, missed the Zacks Consensus Estimate by 0.7%.
Net written premiums increased 4% year over year to a record $11.5 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $10.9 billion.
Travelers witnessed an underwriting profit of $1 billion against a loss of $65 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 84.7 improved 300 bps year over year. The combined ratio improved 990 bps year over year to 90.3 due to lower catastrophe losses, an improvement in the underlying combined ratio and higher net favorable prior year reserve development. The Zacks Consensus Estimate was pegged at 99.
The Progressive Corporation’s (PGR - Free Report) second-quarter 2025 earnings per share of $4.88 beat the Zacks Consensus Estimate by 10.1%. The bottom line increased 84.1% year over year. Net premiums written were $20 billion in the quarter, up 12% from $17.9 billion a year ago.
Net premiums earned grew 18% to $20.3 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.1 billion. Operating revenues increased 19.5% year over year to $42.2 billion, driven by 19% higher net premiums earned, a 29.3% increase in net investment income, an 18.9% rise in fees and 28% higher service revenues.
RLI Corp. (RLI - Free Report) reported second-quarter 2025 operating earnings of 84 cents share, beating the Zacks Consensus Estimate by 12%. The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year, driven by 6% higher net premiums earned and 16% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%.
Underwriting income of $62.2 million decreased 11.14% year over year. The combined ratio deteriorated 300 bps year over year to 84.5. The Zacks Consensus Estimate for the metric was pegged at 88, while our estimate was 42.9.