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W.R. Berkley Q3 Earnings, Revenues Top on Solid Underwriting
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Key Takeaways
W.R. Berkley's Q3 operating income rose 18.3% year over year to $1.10 per share.
Revenues grew 8.2% to $3.6 billion, fueled by higher premiums and investment income.
Net premiums written climbed 5.5% to $3.4 billion, driven by strength across key lines.
W.R. Berkley Corporation's (WRB - Free Report) 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%.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
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.
The Progressive Corporation’s (PGR - Free Report) third-quarter 2025 earnings per share of $4.05 missed the Zacks Consensus Estimate by 20.3%. Operating revenues of $22.2 billion missed the Zacks Consensus Estimate by 0.6%. However, the bottom line increased 13.1% year over year while the top line increased 12.7%.
Net premiums written were $21.3 billion in the quarter, up 10% from $19.5 billion a year ago. Net premiums earned grew 14% to $20.8 billion. The reported figure missed the Zacks Consensus Estimate of $21.1 billion.
The Travelers Companies (TRV - Free Report) reported third-quarter 2025 core income of $8.14 per share, which beat the Zacks Consensus Estimate by 35.4%. The bottom line increased 55% year over year. Travelers’ total revenues increased 5% from the year-ago quarter to $12.44 billion, primarily driven by higher premiums, net investment income, fee income, and other revenues. The top-line figure beat the Zacks Consensus Estimate by 0.7%.
Net written premiums increased 1% year over year to a record $11.47 billion. The underwriting gain doubled year over year to $1.4 billion. The consolidated underlying combined ratio of 83.9 improved 170 bps year over year. The combined ratio improved 590 bps year over year to 87.3 due to lower catastrophe losses and an improvement in the underlying combined ratio, partially offset by lower net favorable prior year reserve development.
RLI Corp. (RLI - Free Report) reported third-quarter 2025 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 33.9%. The bottom line increased 27.7% from the prior-year quarter. Operating revenues in the reported quarter were $449 million, up 5.3% year over year, driven by 4.7% higher net premiums earned and 12.5% higher net investment income. The top line beat the Zacks Consensus Estimate by 0.5%.
Underwriting income of $60.5 million increased 48.6% year over year. The combined ratio improved 450 basis points (bps) year over year to 85.1. Our estimate was 97.8.
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W.R. Berkley Q3 Earnings, Revenues Top on Solid Underwriting
Key Takeaways
W.R. Berkley Corporation's (WRB - Free Report) 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%.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
W.R. Berkley Corporation price-consensus-eps-surprise-chart | W.R. Berkley Corporation Quote
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.
Zacks Rank
WRB currently carries 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 Progressive Corporation’s (PGR - Free Report) third-quarter 2025 earnings per share of $4.05 missed the Zacks Consensus Estimate by 20.3%. Operating revenues of $22.2 billion missed the Zacks Consensus Estimate by 0.6%. However, the bottom line increased 13.1% year over year while the top line increased 12.7%.
Net premiums written were $21.3 billion in the quarter, up 10% from $19.5 billion a year ago. Net premiums earned grew 14% to $20.8 billion. The reported figure missed the Zacks Consensus Estimate of $21.1 billion.
The Travelers Companies (TRV - Free Report) reported third-quarter 2025 core income of $8.14 per share, which beat the Zacks Consensus Estimate by 35.4%. The bottom line increased 55% year over year. Travelers’ total revenues increased 5% from the year-ago quarter to $12.44 billion, primarily driven by higher premiums, net investment income, fee income, and other revenues. The top-line figure beat the Zacks Consensus Estimate by 0.7%.
Net written premiums increased 1% year over year to a record $11.47 billion. The underwriting gain doubled year over year to $1.4 billion. The consolidated underlying combined ratio of 83.9 improved 170 bps year over year. The combined ratio improved 590 bps year over year to 87.3 due to lower catastrophe losses and an improvement in the underlying combined ratio, partially offset by lower net favorable prior year reserve development.
RLI Corp. (RLI - Free Report) reported third-quarter 2025 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate by 33.9%. The bottom line increased 27.7% from the prior-year quarter. Operating revenues in the reported quarter were $449 million, up 5.3% year over year, driven by 4.7% higher net premiums earned and 12.5% higher net investment income. The top line beat the Zacks Consensus Estimate by 0.5%.
Underwriting income of $60.5 million increased 48.6% year over year. The combined ratio improved 450 basis points (bps) year over year to 85.1. Our estimate was 97.8.