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WRB's Q3 operating earnings rose 6.4% to $1.17 per share, while revenues of $3.76 billion missed estimates.
Net premiums written jumped 1.3% to $3.27 billion, while investment income grew 9.2% to $383.5 million.
WRB's combined ratio improved to 90.8%, while catastrophe losses rose to $85.9 million from $78.5 million.
W.R. Berkley Corporation (WRB - Free Report) reported third-quarter 2026 operating income of $1.17 per share, which beat the Zacks Consensus Estimate by 2.63%. The bottom line increased 6.4% year over year. Operating revenues of $3.76 billion rose 1.8% year over year but missed the consensus estimate by 1.19%.
The insurer benefited from higher premiums and increased net investment income, partly offset by higher expenses and catastrophe losses. Net premiums earned jumped 1.8% year over year.
WRB's Q3 Performance Highlights
W.R. Berkley’s net premiums written increased 1.3% year over year to $3.27 billion, driven by growth in the Insurance segment. Net premiums earned rose to $3.21 billion from $3.16 billion in the year-ago quarter. Our estimate was pegged at $3.31 billion.
Net investment income grew 9.2% year over year to $383.5 million, supported by higher income from the core investment portfolio. Income from fixed-maturity securities increased 10.3%, while the core portfolio contributed $369.1 million, up 12% year over year. The Zacks Consensus Estimate was pegged at $398.2 million. Our estimate was pegged at $384.3 billion.
Total expenses jumped 1.4% year over year to $3.16 billion, reflecting higher loss and loss expenses and other operating costs, partly offset by lower expenses from non-insurance businesses. Our estimate was pegged at $3.25 billion.
The consolidated loss ratio improved 20 basis points (bps) year over year to 62.2%. Our estimate was pegged at 63.6%, while the Zacks Consensus Estimate was pegged at 63.6%.
The expense ratio deteriorated 10 bps to 28.6%. Our estimate was pegged at 29.2%, while the Zacks Consensus Estimate was pegged at 28.3%. The combined ratio, a measure of underwriting profitability, improved 10 bps to 90.8%. Our estimate was pegged at 92.8%, while the Zacks Consensus Estimate was pegged at 90.95%.
Catastrophe losses increased to $85.9 million from $78.5 million in the year-ago quarter. The current accident year combined ratio, excluding catastrophe losses, was 88.1%.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
Net premiums written at the Insurance segment increased 3.2% year over year to $2.9 billion in the quarter, in line with our estimate. Growth was primarily driven by higher premiums from other liability, auto, professional liability and short-tail lines.
Net premiums earned increased 3.2% to $2.86 billion. The Zacks Consensus Estimate was pegged at $2.9 billion. Our estimate was pegged at $2.83 billion.
Gross premiums written rose 4.9% to $3.56 billion, reflecting continued underwriting activity across the segment. Our estimate was pegged at $2.95 billion.
The segment's combined ratio improved 60 bps year over year to 91.7%. Our estimate was pegged at 93.4%, while the Zacks Consensus Estimate was pegged at 91.7%.
The loss ratio improved 60 bps to 63.3%. Our estimate was pegged at 64.5%, while the Zacks Consensus Estimate was pegged at 63.7%.
The expense ratio remained unchanged at 28.4%. Our estimate was pegged at 28.9%, while the Zacks Consensus Estimate was pegged at 28%.
Pre-tax income increased 10.3% year over year to $523.4 million. Pre-tax underwriting income grew 10.6% to $237.7 million, indicating improved underwriting profitability.
WRB's Reinsurance & Monoline Excess Results
Net premiums written in the Reinsurance & Monoline Excess segment decreased 11.7% year over year to $368.6 million. The decline reflected lower premiums in casualty and property reinsurance, partly offset by growth in monoline excess. Our estimate was pegged at $439.4 million.
Net premiums earned declined 8.3% year over year to $351.7 million, while gross premiums written decreased 11.7% to $391.5 million. Our estimate was pegged at $382.2 million. the Zacks Consensus Estimate was pegged at $367.1 million. The segment's combined ratio deteriorated 230 bps year over year to 83.4%. Our estimate was pegged at 88.1%, while the Zacks Consensus Estimate was pegged at 86.8%.
The loss ratio increased 190 bps to 53.2%, Our estimate was pegged at 56.9%, while the Zacks Consensus Estimate was pegged at 56.9%.
The expense ratio rose 40 bps to 30.2%. Our estimate was pegged at 31.3%, while the Zacks Consensus Estimate was pegged at 29.9%. Pre-tax income declined 7.5% year over year to $133.3 million, reflecting weaker segment profitability.
Berkley's Investment Portfolio Performance
The insurer's core investment portfolio continued to support investment income growth. Income from the arbitrage trading account declined to $12.3 million from $16.3 million, while investment fund income decreased to $2.1 million from $5.4 million.
Net investment losses totaled $18.3 million compared with investment gains of $79 million in the prior-year quarter. These losses weighed on GAAP net income, which declined 12.7% year over year to $446 million.
The company's fixed-maturity securities portfolio maintained an average credit rating of AA-. Management highlighted favorable reinvestment yields relative to the portfolio's existing book yield.
WRB's Financial Update
W.R. Berkley exited the third quarter of 2026 with total assets worth $45.68 billion compared with $43.93 billion at the 2025-end level.
Senior notes and other debt declined slightly from the 2025-end level to $1.83 billion. Book value per share increased 0.6% from the 2025-end level to $25.87.
Cash flow from operations was $731.3 million, down 35.8% year over year.
Operating return on equity declined 220 bps year over year to 18.8%, while return on equity decreased to 18.4% from 24.3%.
Berkley's Capital Deployment
W.R. Berkley repurchased approximately 309,508 common shares for $21.1 million during the third quarter of 2026, continuing its capital return activities.
During the first nine months of 2026, the insurer returned $728.6 million to shareholders, including $435.1 million through share repurchases. Management emphasized its disciplined capital allocation strategy, maintaining financial flexibility to support future opportunities while continuing to return capital to shareholders.
The Progressive Corporation’s (PGR - Free Report) third-quarter 2026 earnings per share of $4.60 beat the Zacks Consensus Estimate by 3.1%. The bottom line increased 13.6% year over year. Net premiums written were $22.3 billion in the quarter, up 4% from $21.4 billion a year ago. Combined ratio improved 80 basis points from the prior-year quarter’s level to 88.7. The Zacks Consensus Estimate was pegged at 89.4.
The Travelers Companies, Inc. (TRV - Free Report) reported third-quarter 2026 core earnings of $9.18 per share, which beat the Zacks Consensus Estimate of $7.07 by 29.8%. The bottom line increased 12.8% year over year. Revenues of $12.45 billion surpassed the consensus estimate of $12.40 billion by 0.4% and remained nearly flat year over year.
The combined ratio improved 50 basis points year over year to 86.8%, reflecting stronger reserve development, partially offset by higher catastrophe losses. The underlying combined ratio deteriorated 20 basis points to 84.1%, while underlying underwriting income reached $1.74 billion pre-tax. The Zacks Consensus Estimate for combined ratio was pegged at 92.
Upcoming Release
Chubb Limited (CB - Free Report) will report third-quarter 2026 results on Oct. 20, after market close. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $6.42, indicating a decrease of 14.3% from the year-ago quarter’s reported figure. CB’s earnings beat estimates in the last four quarters.
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W.R. Berkley Q3 Earnings Beat, Revenues Miss, Premiums Rise Y/Y
Key Takeaways
W.R. Berkley Corporation (WRB - Free Report) reported third-quarter 2026 operating income of $1.17 per share, which beat the Zacks Consensus Estimate by 2.63%. The bottom line increased 6.4% year over year. Operating revenues of $3.76 billion rose 1.8% year over year but missed the consensus estimate by 1.19%.
The insurer benefited from higher premiums and increased net investment income, partly offset by higher expenses and catastrophe losses. Net premiums earned jumped 1.8% year over year.
WRB's Q3 Performance Highlights
W.R. Berkley’s net premiums written increased 1.3% year over year to $3.27 billion, driven by growth in the Insurance segment. Net premiums earned rose to $3.21 billion from $3.16 billion in the year-ago quarter. Our estimate was pegged at $3.31 billion.
Net investment income grew 9.2% year over year to $383.5 million, supported by higher income from the core investment portfolio. Income from fixed-maturity securities increased 10.3%, while the core portfolio contributed $369.1 million, up 12% year over year. The Zacks Consensus Estimate was pegged at $398.2 million. Our estimate was pegged at $384.3 billion.
Total expenses jumped 1.4% year over year to $3.16 billion, reflecting higher loss and loss expenses and other operating costs, partly offset by lower expenses from non-insurance businesses. Our estimate was pegged at $3.25 billion.
The consolidated loss ratio improved 20 basis points (bps) year over year to 62.2%. Our estimate was pegged at 63.6%, while the Zacks Consensus Estimate was pegged at 63.6%.
The expense ratio deteriorated 10 bps to 28.6%. Our estimate was pegged at 29.2%, while the Zacks Consensus Estimate was pegged at 28.3%.
The combined ratio, a measure of underwriting profitability, improved 10 bps to 90.8%. Our estimate was pegged at 92.8%, while the Zacks Consensus Estimate was pegged at 90.95%.
Catastrophe losses increased to $85.9 million from $78.5 million in the year-ago quarter. The current accident year combined ratio, excluding catastrophe losses, was 88.1%.
W.R. Berkley Corporation Price, Consensus and EPS Surprise
W.R. Berkley Corporation price-consensus-eps-surprise-chart | W.R. Berkley Corporation Quote
Berkley's Insurance Segment Results
Net premiums written at the Insurance segment increased 3.2% year over year to $2.9 billion in the quarter, in line with our estimate. Growth was primarily driven by higher premiums from other liability, auto, professional liability and short-tail lines.
Net premiums earned increased 3.2% to $2.86 billion. The Zacks Consensus Estimate was pegged at $2.9 billion. Our estimate was pegged at $2.83 billion.
Gross premiums written rose 4.9% to $3.56 billion, reflecting continued underwriting activity across the segment. Our estimate was pegged at $2.95 billion.
The segment's combined ratio improved 60 bps year over year to 91.7%. Our estimate was pegged at 93.4%, while the Zacks Consensus Estimate was pegged at 91.7%.
The loss ratio improved 60 bps to 63.3%. Our estimate was pegged at 64.5%, while the Zacks Consensus Estimate was pegged at 63.7%.
The expense ratio remained unchanged at 28.4%. Our estimate was pegged at 28.9%, while the Zacks Consensus Estimate was pegged at 28%.
Pre-tax income increased 10.3% year over year to $523.4 million. Pre-tax underwriting income grew 10.6% to $237.7 million, indicating improved underwriting profitability.
WRB's Reinsurance & Monoline Excess Results
Net premiums written in the Reinsurance & Monoline Excess segment decreased 11.7% year over year to $368.6 million. The decline reflected lower premiums in casualty and property reinsurance, partly offset by growth in monoline excess. Our estimate was pegged at $439.4 million.
Net premiums earned declined 8.3% year over year to $351.7 million, while gross premiums written decreased 11.7% to $391.5 million. Our estimate was pegged at $382.2 million. the Zacks Consensus Estimate was pegged at $367.1 million.
The segment's combined ratio deteriorated 230 bps year over year to 83.4%. Our estimate was pegged at 88.1%, while the Zacks Consensus Estimate was pegged at 86.8%.
The loss ratio increased 190 bps to 53.2%, Our estimate was pegged at 56.9%, while the Zacks Consensus Estimate was pegged at 56.9%.
The expense ratio rose 40 bps to 30.2%. Our estimate was pegged at 31.3%, while the Zacks Consensus Estimate was pegged at 29.9%.
Pre-tax income declined 7.5% year over year to $133.3 million, reflecting weaker segment profitability.
Berkley's Investment Portfolio Performance
The insurer's core investment portfolio continued to support investment income growth. Income from the arbitrage trading account declined to $12.3 million from $16.3 million, while investment fund income decreased to $2.1 million from $5.4 million.
Net investment losses totaled $18.3 million compared with investment gains of $79 million in the prior-year quarter. These losses weighed on GAAP net income, which declined 12.7% year over year to $446 million.
The company's fixed-maturity securities portfolio maintained an average credit rating of AA-. Management highlighted favorable reinvestment yields relative to the portfolio's existing book yield.
WRB's Financial Update
W.R. Berkley exited the third quarter of 2026 with total assets worth $45.68 billion compared with $43.93 billion at the 2025-end level.
Senior notes and other debt declined slightly from the 2025-end level to $1.83 billion. Book value per share increased 0.6% from the 2025-end level to $25.87.
Cash flow from operations was $731.3 million, down 35.8% year over year.
Operating return on equity declined 220 bps year over year to 18.8%, while return on equity decreased to 18.4% from 24.3%.
Berkley's Capital Deployment
W.R. Berkley repurchased approximately 309,508 common shares for $21.1 million during the third quarter of 2026, continuing its capital return activities.
During the first nine months of 2026, the insurer returned $728.6 million to shareholders, including $435.1 million through share repurchases.
Management emphasized its disciplined capital allocation strategy, maintaining financial flexibility to support future opportunities while continuing to return capital to shareholders.
WRB’s Zacks Rank
W.R. Berkley 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 Progressive Corporation’s (PGR - Free Report) third-quarter 2026 earnings per share of $4.60 beat the Zacks Consensus Estimate by 3.1%. The bottom line increased 13.6% year over year. Net premiums written were $22.3 billion in the quarter, up 4% from $21.4 billion a year ago. Combined ratio improved 80 basis points from the prior-year quarter’s level to 88.7. The Zacks Consensus Estimate was pegged at 89.4.
The Travelers Companies, Inc. (TRV - Free Report) reported third-quarter 2026 core earnings of $9.18 per share, which beat the Zacks Consensus Estimate of $7.07 by 29.8%. The bottom line increased 12.8% year over year. Revenues of $12.45 billion surpassed the consensus estimate of $12.40 billion by 0.4% and remained nearly flat year over year.
The combined ratio improved 50 basis points year over year to 86.8%, reflecting stronger reserve development, partially offset by higher catastrophe losses. The underlying combined ratio deteriorated 20 basis points to 84.1%, while underlying underwriting income reached $1.74 billion pre-tax. The Zacks Consensus Estimate for combined ratio was pegged at 92.
Upcoming Release
Chubb Limited (CB - Free Report) will report third-quarter 2026 results on Oct. 20, after market close. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $6.42, indicating a decrease of 14.3% from the year-ago quarter’s reported figure. CB’s earnings beat estimates in the last four quarters.