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Will W.R. Berkley Pull Off a Surprise This Earnings Season?

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Key Takeaways

  • Ongoing share buybacks are expected to further enhance earnings per share and shareholder value.
  • Robust pricing, retention, and exposure gains are expected to enhance premiums earned.
  • Net investment income should gain from solid operating cash flow, higher yields on fixed maturity securities.

W.R. Berkley Corporation (WRB - Free Report) is expected to register an improvement in its top and bottom lines when it reports third-quarter 2025 results on Oct. 20, after market close.

The Zacks Consensus Estimate for WRB’s third-quarter revenues is pegged at $3.67 billion, indicating 7.7% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $1.07 per share. The Zacks Consensus Estimate for WRB’s second-quarter earnings has moved up 2.8% in the past 30 days. The estimate suggests a year-over-year increase of 15%.

What the Zacks Model Unveils

Our proven model conclusively predicts an earnings beat for W.R. Berkley this time around. The right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here.

Earnings ESP: W.R. Berkley has an Earnings ESP of +1.62%. This is because the Most Accurate Estimate of $1.08 is pegged higher than the Zacks Consensus Estimate of $1.07. 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 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 9.8% from the year-ago reported number.

The 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 $425 million, suggesting a rise of 2.6% from the year-ago reported number.  

The Zacks Consensus Estimate for second-quarter 2025 premiums earned is pegged at $3.1 billion, indicating an increase of 7.5% from the year-ago reported quarter. Our estimate for the metric is pegged at $3.1 billion, indicating a 7.7% upside from the year-ago reported number.

The ongoing growth in the invested assets from strong operating cash flow and new money rates on fixed maturity securities that remain comfortably above average book yield is likely to have aided net investment income. The Zacks Consensus Estimate for third-quarter 2025 net investment income is pegged at $366 million, indicating an increase of 13% from the year-ago reported quarter. Our estimate for the metric is pegged at $352.4 million, indicating an 8.8% upside from the year-ago reported number.

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 7.5% to $3.1 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 28.54 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 90.98.

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

Other 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:

Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +7.19% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $2.01, indicating a year-over-year increase of 1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Kinsale Capital Group, Inc. (KNSL - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $4.74, indicating a year-over-year increase of 12.8%.

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

RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +20.77% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $7.87, indicating a year-over-year decrease of 23%.

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

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