We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
W.R. Berkley Q4 Earnings Miss Estimate, Revenues Up Y/Y
Read MoreHide Full Article
Key Takeaways
WRB's Q4 operating income missed estimates, but higher premiums and investment income supported results.
WRB delivered full-year EPS growth of 4.6%, with operating income beating expectations.
WRB saw record net investment income and higher premiums, driving revenue growth in 2025
W.R. Berkley Corporation’s(WRB - Free Report) 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.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
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.
The Travelers Companies, Inc. (TRV - Free Report) reported fourth-quarter 2025 core income of $11.13 per share, which beat the Zacks Consensus Estimate by 32% and improved 22% year over year. Travelers’ total revenues increased 3.2% from the year-ago quarter to $12.4 billion, primarily driven by higher premiums, net investment income, and other revenues. The top line beat the Zacks Consensus Estimate by 0.08%.
Net written premiums increased 1% year over year to a record $10.8 billion. Net investment income increased 10.3% year over year to $1 billion. The figure matched the Zacks Consensus Estimate. Travelers witnessed an underwriting gain of $1.7 billion, up 21.7% year over year. The consolidated underlying combined ratio of 82.2 improved 180 bps year over year.
RLI Corp.(RLI - Free Report) reported fourth-quarter 2025 operating earnings of 94 cents per share, which beat the Zacks Consensus Estimate by 23.6%. The bottom line increased 80.8% from the prior-year quarter’s level. Operating revenues for the reported quarter totaled $449 million, up 3% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Gross premiums written decreased 2.1% year over year to $463.2 million. This can be attributed to the low performance of the Property Segment. Our estimate was $505.2 million. Net investment income increased 9.2% year over year to $42.3 million. The Zacks Consensus Estimate was $42.9 million, while our estimate for the metric was pegged at $44.5 million. The investment portfolio’s total return was 1.5% in the quarter.
Brown & Brown, Inc.’s(BRO - Free Report) fourth-quarter 2025 adjusted earnings of 93 cents per share beat the Zacks Consensus Estimate by 2.1%. The bottom line increased 8.1% year over year.
Total revenues of $1.6 billion missed the Zacks Consensus Estimate by 2.1%. The top line improved 35.7% year over year. Adjusted EBITDAC was $529 million, up 35.6% year over year. EBITDAC margin remained unchanged year over year at 32.9%. Investment income and other income increased 17.3% year over year to $27 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
W.R. Berkley Q4 Earnings Miss Estimate, Revenues Up Y/Y
Key Takeaways
W.R. Berkley Corporation’s(WRB - Free Report) 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.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
W.R. Berkley Corporation price-consensus-eps-surprise-chart | W.R. Berkley Corporation Quote
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.
WRB’s Zacks Rank
W.R. Berkley currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
The Travelers Companies, Inc. (TRV - Free Report) reported fourth-quarter 2025 core income of $11.13 per share, which beat the Zacks Consensus Estimate by 32% and improved 22% year over year. Travelers’ total revenues increased 3.2% from the year-ago quarter to $12.4 billion, primarily driven by higher premiums, net investment income, and other revenues. The top line beat the Zacks Consensus Estimate by 0.08%.
Net written premiums increased 1% year over year to a record $10.8 billion. Net investment income increased 10.3% year over year to $1 billion. The figure matched the Zacks Consensus Estimate. Travelers witnessed an underwriting gain of $1.7 billion, up 21.7% year over year. The consolidated underlying combined ratio of 82.2 improved 180 bps year over year.
RLI Corp.(RLI - Free Report) reported fourth-quarter 2025 operating earnings of 94 cents per share, which beat the Zacks Consensus Estimate by 23.6%. The bottom line increased 80.8% from the prior-year quarter’s level. Operating revenues for the reported quarter totaled $449 million, up 3% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Gross premiums written decreased 2.1% year over year to $463.2 million. This can be attributed to the low performance of the Property Segment. Our estimate was $505.2 million. Net investment income increased 9.2% year over year to $42.3 million. The Zacks Consensus Estimate was $42.9 million, while our estimate for the metric was pegged at $44.5 million. The investment portfolio’s total return was 1.5% in the quarter.
Brown & Brown, Inc.’s(BRO - Free Report) fourth-quarter 2025 adjusted earnings of 93 cents per share beat the Zacks Consensus Estimate by 2.1%. The bottom line increased 8.1% year over year.
Total revenues of $1.6 billion missed the Zacks Consensus Estimate by 2.1%. The top line improved 35.7% year over year. Adjusted EBITDAC was $529 million, up 35.6% year over year. EBITDAC margin remained unchanged year over year at 32.9%. Investment income and other income increased 17.3% year over year to $27 million.