Return on Equity of 21.2%;
Net Income Grew 23.4% to $515.2 Million and Operating Income Grew 22.5% to a Record $514.3 Million
W. R. Berkley Corporation (NYSE:WRB) today reported its first quarter 2026 results.
Summary Financial Data (Amounts in thousands, except per share data) |
|||||||
|
First Quarter |
||||||
|
2026 |
|
2025 |
||||
|
|
|
|
||||
Gross premiums written |
$ |
3,785,766 |
|
|
$ |
3,683,939 |
|
Net premiums written |
|
3,174,345 |
|
|
|
3,133,302 |
|
|
|
|
|
||||
Net income to common stockholders |
|
515,216 |
|
|
|
417,571 |
|
Net income per diluted share |
|
1.31 |
|
|
|
1.04 |
|
|
|
|
|
||||
Operating income (1) |
|
514,257 |
|
|
|
419,956 |
|
Operating income per diluted share (1) |
|
1.30 |
|
|
|
1.05 |
|
|
|
|
|
||||
Return on equity (2) |
|
21.2 |
% |
|
|
19.9 |
% |
Operating return on equity (1) (2) |
|
21.2 |
% |
|
|
20.0 |
% |
(1) |
Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and related expenses and after-tax net foreign currency gains (losses). The Company's 2025 financial information has been restated to exclude after-tax net foreign currency gains (losses) from operating income to conform with this presentation. |
|
(2) |
Return on equity and operating return on equity represent net income and operating income, respectively, expressed on an annualized basis as a percentage of beginning of year common stockholders' equity. |
First quarter highlights included:
- Return on equity of 21.2%.
- Net income and operating income grew to $515.2 million and a record $514.3 million, respectively.
- Net investment income grew 12.2% to a record of $404.3 million.
- The current accident year combined ratio before catastrophe losses of 2.4 loss ratio points was 88.3%, and the reported combined ratio was 90.7%.
- Average rate increases excluding workers' compensation were approximately 7.2%.
- Total capital returned to shareholders was $336.1 million, consisting of $302.4 million of share repurchases and $33.7 million of regular dividends.
Management commented:
The Company continued to deliver outstanding results in the first quarter of 2026 with an annualized 21.2% return on beginning‑of‑year stockholders' equity, reflecting ongoing growth in underwriting and investment income. We returned total capital of $336 million in the quarter through regular dividends and share repurchases.
Our 88.3% accident year combined ratio excluding catastrophe losses demonstrated the stability of underwriting earnings generated through our diversified operating model. We are growing our business where pricing, terms, and conditions support attractive risk adjusted returns. Our teams continue to execute across a wide range of market conditions, with gross and net premiums written in the insurance segment increasing by 4.5% and 3.2%, respectively.
Net investment income grew by 12.2%, driven by a higher level of invested assets from continued strong operating cash flow, improved portfolio yields, and strong investment fund income, enhancing overall profitability. The credit quality of the fixed-maturity portfolio remains high with an average rating of AA- and a 3.1 year duration.
Our balance sheet remains a source of strength, and we prioritized effective capital management in the first quarter by repurchasing nearly 4.5 million shares. Our disciplined focus on long-term risk-adjusted return continues to drive superior performance across market cycles and create long term value for our shareholders. We remain confident in our ability to exceed our 15% target after‑tax return on equity for the foreseeable future.
Webcast Conference Call
The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on April 21, 2026, at 5:00 p.m. eastern time. The conference call will be webcast live on the Company's website at https://ir.berkley.com/events-and-presentations/default.aspx. Please log on early to register. A replay of the webcast will be available on the Company's website approximately two hours after the end of the conference call. Additional financial information can be found on the Company's website at https://ir.berkley.com/investor-relations/financial-information/quarterly-results/default.aspx.
About W. R. Berkley Corporation
Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty business: Insurance and Reinsurance & Monoline Excess.
Forward Looking Information
This is a "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2026 and beyond, are based upon the Company's historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition, including new entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, foreign government bonds, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts, including claims for cyber security-related risks; the increasing use of artificial intelligence technologies by us or third-parties on which we rely could expose us to technological, security, legal, and other risks; natural and man-made catastrophic losses, including as a result of terrorist activities or the ongoing conflict with Iran; the risk of future pandemics, as well as the continuing effects of the COVID-19 pandemic; the impact of climate-related risks, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, interest rates, the impact of tariffs and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response to such conditions, on our results and financial condition; foreign currency and political risks relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019; the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; cyber security breaches of our information technology systems and the information technology systems of our vendors and other third parties, or related processes and systems; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2026 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
Consolidated Financial Summary (Amounts in thousands, except per share data) |
|||||||
|
First Quarter |
||||||
|
2026 |
|
2025 |
||||
Revenues: |
|
|
|
||||
Net premiums written |
$ |
3,174,345 |
|
|
$ |
3,133,302 |
|
Change in unearned premiums |
|
(59,173 |
) |
|
|
(120,921 |
) |
Net premiums earned |
|
3,115,172 |
|
|
|
3,012,381 |
|
Net investment income |
|
404,333 |
|
|
|
360,292 |
|
Net investment (losses) gains: |
|
|
|
||||
Net realized and unrealized (losses) gains on investments |
|
(15,629 |
) |
|
|
15,711 |
|
Change in allowance for credit losses on investments |
|
(146 |
) |
|
|
644 |
|
Net investment (losses) gains |
|
(15,775 |
) |
|
|
16,355 |
|
Revenues from non-insurance businesses |
|
156,551 |
|
|
|
128,909 |
|
Insurance service fees |
|
28,230 |
|
|
|
28,929 |
|
Other Income |
|
1,823 |
|
|
|
533 |
|
Total Revenues |
|
3,690,334 |
|
|
|
3,547,399 |
|
Expenses: |
|
|
|
||||
Loss and loss expenses |
|
1,936,025 |
|
|
|
1,900,792 |
|
Other operating costs and expenses |
|
970,660 |
|
|
|
949,910 |
|
Expenses from non-insurance businesses |
|
135,842 |
|
|
|
126,364 |
|
Interest expense |
|
31,709 |
|
|
|
31,727 |
|
Total expenses |
|
3,074,236 |
|
|
|
3,008,793 |
|
Income before income tax |
|
616,098 |
|
|
|
538,606 |
|
Income tax expense |
|
(100,523 |
) |
|
|
(121,257 |
) |
Net Income before noncontrolling interests |
|
515,575 |
|
|
|
417,349 |
|
Noncontrolling interest |
|
(359 |
) |
|
|
222 |
|
Net income to common stockholders |
$ |
515,216 |
|
|
$ |
417,571 |
|
|
|
|
|
||||
Net income per share: |
|
|
|
||||
Basic |
$ |
1.31 |
|
|
$ |
1.05 |
|
Diluted |
$ |
1.31 |
|
|
$ |
1.04 |
|
|
|
|
|
||||
Average shares outstanding (1): |
|
|
|
||||
Basic |
|
392,264 |
|
|
|
396,929 |
|
Diluted |
|
394,779 |
|
|
|
399,825 |
|
(1) |
Basic shares outstanding consist of the weighted average number of common shares outstanding during the period (including shares held in a grantor trust). Diluted shares outstanding consist of the weighted average number of basic and common equivalent shares outstanding during the period. |
Business Segment Operating Results (Amounts in thousands, except ratios) (1) |
|||||||
|
First Quarter |
||||||
|
2026 |
|
2025 |
||||
Insurance: |
|
|
|
||||
Gross premiums written |
$ |
3,361,567 |
|
|
$ |
3,216,952 |
|
Net premiums written |
|
2,779,717 |
|
|
|
2,694,455 |
|
Net premiums earned |
|
2,765,492 |
|
|
|
2,642,507 |
|
Pre-tax income |
|
524,663 |
|
|
|
509,505 |
|
Loss ratio |
|
63.9 |
% |
|
|
63.9 |
% |
Expense ratio |
|
28.3 |
% |
|
|
27.8 |
% |
GAAP Combined ratio |
|
92.2 |
% |
|
|
91.7 |
% |
|
|
|
|
||||
Reinsurance & Monoline Excess: |
|
|
|
||||
Gross premiums written |
$ |
424,199 |
|
|
$ |
466,987 |
|
Net premiums written |
|
394,628 |
|
|
|
438,847 |
|
Net premiums earned |
|
349,680 |
|
|
|
369,874 |
|
Pre-tax income |
|
142,706 |
|
|
|
120,380 |
|
Loss ratio |
|
48.3 |
% |
|
|
57.7 |
% |
Expense ratio |
|
30.3 |
% |
|
|
27.7 |
% |
GAAP Combined ratio |
|
78.6 |
% |
|
|
85.4 |
% |
|
|
|
|
||||
Corporate and Eliminations: |
|
|
|
||||
Net investment (losses) gains |
$ |
(15,775 |
) |
|
$ |
16,355 |
|
Interest expense |
|
(31,709 |
) |
|
|
(31,727 |
) |
Other expenses |
|
(3,787 |
) |
|
|
(75,907 |
) |
Pre-tax loss |
|
(51,271 |
) |
|
|
(91,279 |
) |
|
|
|
|
||||
Consolidated: |
|
|
|
||||
Gross premiums written |
$ |
3,785,766 |
|
|
$ |
3,683,939 |
|
Net premiums written |
|
3,174,345 |
|
|
$ |
3,133,302 |
|
Net premiums earned |
|
3,115,172 |
|
|
$ |
3,012,381 |
|
Pre-tax income |
|
616,098 |
|
|
|
538,606 |
|
Loss ratio |
|
62.1 |
% |
|
|
63.1 |
% |
Expense ratio |
|
28.6 |
% |
|
|
27.8 |
% |
GAAP Combined ratio |
|
90.7 |
% |
|
|
90.9 |
% |
(1) |
Loss ratio is losses and loss expenses incurred expressed as a percentage of premiums earned. Expense ratio is underwriting expenses expressed as a percentage of premiums earned. GAAP combined ratio is the sum of the loss ratio and the expense ratio. |
Supplemental Information (Amounts in thousands) |
|||||||
|
First Quarter |
||||||
|
2026 |
|
2025 |
||||
Net premiums written: |
|
|
|
||||
Other liability |
$ |
1,119,418 |
|
|
$ |
1,108,264 |
|
Short-tail lines (1) |
|
630,989 |
|
|
|
600,192 |
|
Auto |
|
417,811 |
|
|
|
389,154 |
|
Workers' compensation |
|
329,018 |
|
|
|
340,607 |
|
Professional liability |
|
282,481 |
|
|
|
256,238 |
|
Total Insurance |
|
2,779,717 |
|
|
|
2,694,455 |
|
Casualty (2) |
|
157,985 |
|
|
|
186,790 |
|
Monoline excess |
|
127,630 |
|
|
|
119,900 |
|
Property (2) |
|
109,013 |
|
|
|
132,157 |
|
Total Reinsurance & Monoline Excess |
|
394,628 |
|
|
|
438,847 |
|
Total |
$ |
3,174,345 |
|
|
$ |
3,133,302 |
|
|
|
|
|
||||
Current accident year losses from catastrophes: |
|||||||
Insurance |
$ |
75,476 |
|
|
$ |
70,617 |
|
Reinsurance & Monoline Excess |
|
202 |
|
|
|
40,491 |
|
Total |
$ |
75,678 |
|
|
$ |
111,108 |
|
|
|
|
|
||||
Net Investment income: |
|
|
|
||||
Core portfolio (3) |
$ |
354,491 |
|
|
$ |
316,940 |
|
Investment funds |
|
39,529 |
|
|
|
27,023 |
|
Arbitrage trading account |
|
10,313 |
|
|
|
16,329 |
|
Total |
$ |
404,333 |
|
|
$ |
360,292 |
|
|
|
|
|
||||
Net realized and unrealized (losses) gains on investments: |
|
|
|
||||
Net realized losses on investments |
$ |
(11,135 |
) |
|
$ |
(4,235 |
) |
Change in unrealized (losses) gains on equity securities |
|
(4,494 |
) |
|
|
19,946 |
|
Total |
$ |
(15,629 |
) |
|
$ |
15,711 |
|
|
|
|
|
||||
Other operating costs and expenses: |
|
|
|
||||
Policy acquisition and insurance operating expenses |
$ |
889,185 |
|
|
$ |
838,246 |
|
Insurance service expenses |
|
23,166 |
|
|
|
23,246 |
|
Net foreign currency (gains) losses |
|
(17,011 |
) |
|
|
19,378 |
|
Other costs and expenses |
|
75,320 |
|
|
|
69,040 |
|
Total |
$ |
970,660 |
|
|
$ |
949,910 |
|
|
|
|
|
||||
Cash flow from operations |
$ |
667,857 |
|
|
$ |
743,817 |
|
|
|
|
|
||||
Reconciliation of net income to operating income: |
|
|
|
||||
Net income |
$ |
515,216 |
|
|
$ |
417,571 |
|
Pre-tax investment losses (gains), net of related expenses |
|
15,775 |
|
|
|
(16,355 |
) |
Pre- tax net foreign currency (gains) losses |
|
(17,011 |
) |
|
|
19,378 |
|
Income tax expense |
|
277 |
|
|
|
(638 |
) |
Operating income after-tax (4) |
$ |
514,257 |
|
|
$ |
419,956 |
|
(1) |
Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery, high net worth homeowners and other lines. |
|
(2) |
Includes reinsurance casualty and property and certain program management business. |
|
(3) |
Core portfolio includes fixed maturity securities, equity securities, cash and cash equivalents, real estate and loans receivable. |
|
(4) |
Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and after tax net foreign currency gains (losses). Net investment gains (losses) are computed net of related expenses, including performance-based compensatory costs associated with realized investment gains. The Company's 2025 financial information has been restated to exclude after-tax net foreign currency gains (losses) from operating income to conform with this presentation. Management believes this measurement provides a useful indicator of trends in the Company's underlying operations.
|
Selected Balance Sheet Information (Amounts in thousands, except per share data) |
|||||
|
March 31,
|
|
December 31,
|
||
|
|
|
|
||
Net invested assets (1) |
$ |
33,418,412 |
|
$ |
33,173,381 |
Total assets |
|
44,315,553 |
|
|
43,926,843 |
Reserves for losses and loss expenses |
|
22,616,260 |
|
|
22,207,773 |
Senior notes and other debt |
|
1,830,328 |
|
|
1,829,198 |
Subordinated debentures |
|
1,010,707 |
|
|
1,010,527 |
Common stockholders' equity (2) |
|
9,739,550 |
|
|
9,700,818 |
Common stock outstanding (3) |
|
372,700 |
|
|
377,156 |
Book value per share (4) |
|
26.13 |
|
|
25.72 |
Tangible book value per share (4) |
|
25.52 |
|
|
25.11 |
(1) |
Net invested assets include investments, cash and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases. |
|
(2) |
As of March 31, 2026, reflected in common stockholders' equity are after-tax unrealized investment losses of $270 million and unrealized currency translation losses of $331 million. As of December 31, 2025, reflected in common stockholders' equity are after-tax unrealized investment losses of $125 million and unrealized currency translation losses of $326 million. |
|
(3) |
During the three months ended March 31, 2026, the Company repurchased 4,471,634 shares of its common stock for $302 million. The number of shares of common stock outstanding excludes shares held in a grantor trust. |
|
(4) |
Book value per share is total common stockholders' equity divided by the number of common shares outstanding. Tangible book value per share is total common stockholders' equity excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding. |
Investment Portfolio March 31, 2026 (Amounts in thousands, except percentages) |
|||||
|
Carrying Value |
|
Percent of Total |
||
Fixed maturity securities: |
|
|
|
||
United States government and government agencies |
$ |
4,383,573 |
|
13.1 |
% |
State and municipal: |
|
|
|
||
Special revenue |
|
1,108,270 |
|
3.3 |
% |
State general obligation |
|
229,479 |
|
0.7 |
% |
Local general obligation |
|
211,435 |
|
0.6 |
% |
Corporate backed |
|
157,193 |
|
0.5 |
% |
Pre-refunded |
|
74,612 |
|
0.2 |
% |
Total state and municipal |
|
1,780,989 |
|
5.3 |
% |
Mortgage-backed securities: |
|
|
|
||
Agency |
|
4,299,948 |
|
12.9 |
% |
Commercial |
|
221,983 |
|
0.7 |
% |
Residential - Prime |
|
198,589 |
|
0.6 |
% |
Residential - Alt A |
|
1,281 |
|
0.0 |
% |
Total mortgage-backed securities |
|
4,721,801 |
|
14.2 |
% |
Asset-backed securities |
|
3,868,945 |
|
11.6 |
% |
Corporate: |
|
|
|
||
Financial |
|
3,534,559 |
|
10.6 |
% |
Industrial |
|
3,511,729 |
|
10.5 |
% |
Utilities |
|
1,519,659 |
|
4.5 |
% |
Other |
|
210,223 |
|
0.6 |
% |
Total corporate |
|
8,776,170 |
|
26.2 |
% |
Foreign government |
|
1,976,931 |
|
5.9 |
% |
Total fixed maturity securities (1) |
|
25,508,409 |
|
76.3 |
% |
Equity securities available for sale: |
|
|
|
||
Common stocks |
|
849,670 |
|
2.5 |
% |
Preferred stocks |
|
619,981 |
|
1.9 |
% |
Total equity securities available for sale |
|
1,469,651 |
|
4.4 |
% |
Cash and cash equivalents (2) |
|
2,132,557 |
|
6.4 |
% |
Investment funds |
|
1,398,022 |
|
4.2 |
% |
Real estate |
|
1,303,741 |
|
3.9 |
% |
Arbitrage trading account |
|
1,164,872 |
|
3.5 |
% |
Loans receivable |
|
441,160 |
|
1.3 |
% |
Net invested assets |
$ |
33,418,412 |
|
100.0 |
% |
(1) |
Total fixed maturity securities had an average rating of AA- and an average duration of 3.1 years, including cash and cash equivalents. |
|
(2) |
Cash and cash equivalents includes trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260421532909/en/
Karen A. Horvath
Vice President - External
Financial Communications
(203) 629-3000