W.R. Berkley Q4 pre-tax underwriting income up 14.9%

Overview

• Insurance holding company reported Q4 pre-tax underwriting income grew 14.9% to record $338 million

• Operating income for Q4 grew 9.5% to record $450 million

• Company returned $608.3 million to shareholders via dividends and share repurchases

Outlook

• W.R. Berkley expects excellent margins and select opportunities to persist in 2026

• Investment income positioned for growth with new-money rates above book yield

• Company confident of exceeding 15% after-tax return on beginning equity

Result Drivers

• UNDERWRITING INCOME - Record pre-tax underwriting income grew 14.9% to $338 mln, contributing to strong quarterly results

• INVESTMENT INCOME - Fixed-maturity investment income grew 13.3% in Q4, supporting overall financial performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "hold"

• Wall Street's median 12-month price target for W R Berkley Corp is $71.00, about 5.8% above its January 23 closing price of $67.12

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBwc3ZPHha

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