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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 69.5GRADE B
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
17.5%
Sector: 8.5%
Dividend Analysis audit
GROWTH
1.75%
Trailing Yield
$1.75
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
26%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, BERKLEY W R CORP (WRB) receives a "Hold" rating with a composite score of 53.1/100, ranked #979 out of 4446 stocks. Key factor scores: Quality 70/100, Value 70/100, Momentum 38/100. This is quantitative analysis only — not investment advice.
BERKLEY W R CORP (WRB) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does BERKLEY W R CORP Do?
W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally. It operates in two segments, Insurance and Reinsurance & Monoline Excess. The Insurance segment underwrites commercial insurance business, including premises operations, commercial automobile, property, products liability, and general and professional liability lines. It also provides workers' compensation insurance products; accident and health insurance and reinsurance products; insurance for commercial risks; specialty environmental products for contractors, consultants, and property owners and facilities operators; specialized insurance coverages for fine arts and jewelry exposures; umbrella and excess liability coverage products; and liquor liability and inland marine coverage for small to medium-sized insureds. In addition, this segment offers directors and officers, and surety risk products, as well as products for technology, and life sciences and travel industries; cyber risk solutions; casualty, group life, and crime and fidelity related insurance products; personal lines insurance solutions, including home, condo/co-op, auto, and collectibles; automobile, law enforcement, public officials and educator's legal, and employment practices liability, as well as incidental medical insurance products; and at-risk and alternative risk insurance program management services. The Reinsurance & Monoline Excess segment provides other insurance companies and self-insureds with assistance in managing their net risk through reinsurance on a portfolio basis through treaty reinsurance or on an individual basis through facultative reinsurance. W. R. Berkley Corporation was founded in 1967 and is based in Greenwich, Connecticut. BERKLEY W R CORP (WRB) is classified as a large-cap stock in the Financials sector, specifically within the Insurance industry. The company is led by CEO William R. Berkley and employs approximately 8,190 people, headquartered in Greenwich, Connecticut. With a market capitalization of $24.4B, WRB is one of the prominent companies in the Financials sector.
BERKLEY W R CORP (WRB) Stock Rating — Hold (April 2026)
As of April 2026, BERKLEY W R CORP receives a Hold rating with a composite score of 53.1/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.WRB ranks #979 out of 4,446 stocks in our coverage universe. Within the Financials sector, BERKLEY W R CORP ranks #299 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
WRB Stock Price and 52-Week Range
BERKLEY W R CORP (WRB) currently trades at $65.70. The stock lost $1.51 (2.2%) in the most recent trading session. The 52-week high for WRB is $78.96, which means the stock is currently trading -16.8% from its annual peak. The 52-week low is $62.63, putting the stock 4.9% above its annual trough. Recent trading volume was 2.0M shares, reflecting moderate market activity.
Is WRB Overvalued or Undervalued? — Valuation Analysis
BERKLEY W R CORP (WRB) carries a value factor score of 70/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 14.85x, compared to the Financials sector average of 14.88x — a discount of 0%. The price-to-book ratio stands at 2.59x, versus the sector average of 1.22x. The price-to-sales ratio is 1.75x, compared to 0.90x for the average Financials stock. On an enterprise value basis, WRB trades at 11.53x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, BERKLEY W R CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
BERKLEY W R CORP Profitability — ROE, Margins, and Quality Score
BERKLEY W R CORP (WRB) earns a quality factor score of 70/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 17.5%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 3.9% versus the sector average of 1.2%.
On a margin basis, BERKLEY W R CORP reports gross margins of 0.0%. The operating margin is 15.1% (sector: 21.8%). Net profit margin stands at 11.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 13.7% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
WRB Debt, Balance Sheet, and Financial Health
BERKLEY W R CORP has a debt-to-equity ratio of 354.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.28x, suggesting adequate working capital coverage. Total debt on the balance sheet is $3.55B. Cash and equivalents stand at $2.40B.
WRB has a beta of 0.18, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for BERKLEY W R CORP is 91/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
BERKLEY W R CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, BERKLEY W R CORP reported revenue of $14.39B and earnings per share (EPS) of $4.48. Net income for the quarter was $1.70B. Gross margin was 0.0%. Operating income came in at $2.18B.
In FY 2025, BERKLEY W R CORP reported revenue of $14.71B and earnings per share (EPS) of $4.48. Net income for the quarter was $1.78B. Revenue grew 7.8% year-over-year compared to FY 2024. Operating income came in at $2.28B.
In Q3 2025, BERKLEY W R CORP reported revenue of $3.77B and earnings per share (EPS) of $1.29. Net income for the quarter was $512M. Revenue grew 10.8% year-over-year compared to Q3 2024. Operating income came in at $648M.
In Q2 2025, BERKLEY W R CORP reported revenue of $3.67B and earnings per share (EPS) of $1.01. Net income for the quarter was $401M. Revenue grew 10.8% year-over-year compared to Q2 2024. Operating income came in at $522M.
Over the past 8 quarters, BERKLEY W R CORP has demonstrated a growth trajectory, with revenue expanding from $3.31B to $14.39B. Investors analyzing WRB stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
WRB Dividend Yield and Income Analysis
BERKLEY W R CORP (WRB) currently pays a dividend yield of 1.8%. At this yield, a $10,000 investment in WRB stock would generate approximately $$175.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning WRB yields less than the typical sector peer. The net margin of 11.8% provides reasonable coverage for the dividend, though investors should monitor payout sustainability.
WRB Momentum and Technical Analysis Profile
BERKLEY W R CORP (WRB) has a momentum factor score of 38/100, signaling weak relative price performance. Stocks with low momentum scores have historically tended to continue underperforming in the near term. The investment factor score is 28/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 3/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
WRB vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing WRB against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full WRB vs S&P 500 (SPY) comparison to assess how BERKLEY W R CORP stacks up against the broader market across all factor dimensions.
WRB Next Earnings Date
No upcoming earnings date has been announced for BERKLEY W R CORP (WRB) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy WRB? — Investment Thesis Summary
BERKLEY W R CORP presents a balanced picture with arguments on both sides. The quality score of 70/100 indicates above-average profitability and business fundamentals. The value score of 70/100 suggests attractive pricing relative to fundamentals. Momentum is weak at 38/100, a headwind for near-term performance. Low volatility (stability score 91/100) reduces downside risk.
In summary, BERKLEY W R CORP (WRB) earns a Hold rating with a composite score of 53.1/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on WRB stock.
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Institutional Research Dossier
BERKLEY W R CORP (WRB) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on W. R. Berkley Corporation (WRB). While the company exhibits strong profitability and stability, as evidenced by its high Quality and Stability scores in our quant model, concerns regarding capital allocation and growth prospects, reflected in a low Investment score, temper our enthusiasm. The current valuation appears fair, but not compelling enough to warrant a more bullish stance given the mixed signals from its financial performance and the inherent cyclicality of the insurance industry.
WRB's consistent profitability, driven by its diversified insurance offerings and decentralized operating model, is a key strength. However, the negative free cash flow and relatively high debt-to-equity ratio raise questions about its financial flexibility and long-term growth potential. The insurance sector is also subject to regulatory changes and competitive pressures, which could impact WRB's future performance. Therefore, we believe a Hold rating is appropriate, reflecting a balanced view of the company's strengths and weaknesses.
Business Strategy & Overview
W. R. Berkley Corporation operates as a commercial lines writer, offering a diverse range of insurance products and services across the United States and internationally. The company's business model is characterized by a decentralized operating structure, with individual operating units focusing on specific niche markets and product lines. This allows for greater flexibility and responsiveness to local market conditions, enabling WRB to tailor its offerings to meet the unique needs of its customers. The company's two main segments are Insurance and Reinsurance & Monoline Excess.
The Insurance segment, which constitutes the majority of WRB's revenue, underwrites a wide array of commercial insurance business, including property, casualty, and specialty lines. This segment also offers workers' compensation, accident and health, and cyber risk solutions, catering to a diverse range of industries and risk profiles. The Reinsurance & Monoline Excess segment provides reinsurance solutions to other insurance companies and self-insured entities, helping them manage their net risk through treaty and facultative reinsurance. This segment contributes to WRB's overall profitability and diversification.
WRB's strategic positioning is focused on maintaining underwriting discipline and achieving superior risk-adjusted returns. The company emphasizes a data-driven approach to underwriting, leveraging its extensive historical data and analytical capabilities to assess and price risks accurately. This allows WRB to selectively participate in attractive markets and avoid unprofitable business. The company also invests in technology and innovation to enhance its underwriting capabilities and improve operational efficiency.
The insurance industry is highly competitive, with numerous players vying for market share. WRB competes with large national insurers, regional carriers, and specialty underwriters. The company differentiates itself through its decentralized operating model, its focus on niche markets, and its commitment to underwriting excellence. WRB's ability to adapt to changing market conditions and maintain its underwriting discipline is crucial to its long-term success. The company's product pipeline is continuously evolving to meet the emerging needs of its customers, with a focus on developing innovative solutions for emerging risks such as cyber security and climate change.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
13.7%
Sector: 9.4%
+46% VS SCTR
Economic Moat Analysis
W. R. Berkley possesses a Narrow economic moat, primarily derived from its underwriting expertise and specialized knowledge within niche insurance markets. The insurance industry, in general, does not lend itself to wide moats due to the commoditized nature of many insurance products and the ease of entry for new competitors. However, WRB's decentralized operating model, which fosters specialized knowledge and localized expertise, creates a degree of competitive advantage.
The company's underwriting discipline, honed over decades of experience, allows it to accurately assess and price risks, leading to superior underwriting profitability compared to its peers. This expertise is particularly valuable in niche markets where specialized knowledge is required to effectively manage risks. WRB's ability to consistently generate underwriting profits is a key differentiator and a source of competitive advantage.
While WRB does not possess significant network effects or switching costs, its intangible assets, including its brand reputation and underwriting expertise, contribute to its narrow moat. The company's reputation for financial strength and claims-paying ability is important in attracting and retaining customers. Its underwriting expertise, which is embedded in its processes and personnel, is difficult for competitors to replicate.
The insurance industry is subject to cyclical fluctuations, with periods of soft pricing and intense competition followed by periods of hardening rates and improved profitability. WRB's underwriting discipline and focus on niche markets help it to navigate these cycles more effectively than its peers. However, the company's moat is not impenetrable, and it faces ongoing competitive pressures from other insurers and alternative risk transfer mechanisms.
The company's efficient scale is not a primary driver of its moat. While WRB benefits from economies of scale in certain areas, such as reinsurance purchasing and technology investments, its decentralized operating model limits the extent to which it can achieve scale advantages. The company's focus on niche markets also means that it does not compete directly with the largest insurers in all segments of the market.
Financial Health & Profitability
W. R. Berkley's financial health presents a mixed picture. The company has demonstrated consistent revenue growth, with revenue increasing from $12.14 billion in FY2023 to $14.71 billion in FY2025. This growth is indicative of the company's ability to expand its market share and capitalize on favorable market conditions. However, the company's free cash flow is negative, at -$1.56 billion, which raises concerns about its ability to fund future growth and capital expenditures. This negative FCF is a significant red flag that warrants further investigation.
The company's profitability metrics are generally strong. Its ROE of 17.5% significantly exceeds the sector average of 8.5%, indicating that WRB is effectively utilizing its equity to generate profits. However, its operating margin of 15.1% is lower than the sector average of 22.0%, suggesting that the company's operating expenses are relatively high. The net margin of 11.8% is also lower than the sector average of 17.8%, further highlighting the company's relatively high cost structure.
WRB's balance sheet is characterized by a relatively high level of debt. Its debt-to-equity ratio of 354.00 is significantly higher than the sector average of 115.00, indicating that the company is highly leveraged. This high level of debt could constrain the company's financial flexibility and increase its vulnerability to adverse economic conditions. However, the company's current ratio of 1.28 suggests that it has sufficient liquid assets to meet its short-term obligations.
Analyzing the quarterly financial history reveals a consistent trend of revenue and net income growth. The company's operating margin has fluctuated somewhat, but has generally remained within a relatively narrow range. The company's EPS has also shown consistent growth, reflecting its improving profitability. However, the absence of free cash flow data in the quarterly reports makes it difficult to assess the company's cash flow generation on a quarterly basis.
Overall, WRB's financial health is characterized by strong revenue growth and profitability, but also by negative free cash flow and a high level of debt. The company's ability to generate positive free cash flow and reduce its debt burden will be crucial to its long-term financial health. The high debt-to-equity ratio is a significant concern that investors should carefully consider.
Valuation Assessment
W. R. Berkley's valuation appears to be fair relative to its peers and historical performance. The company's P/E ratio of 14.7x is slightly below the sector average of 15.5x, suggesting that the stock is modestly undervalued compared to its peers. However, the P/E ratio is a backward-looking metric and does not fully reflect the company's future growth prospects.
The company's EV/EBITDA ratio of 2.7x is significantly below the sector average of 3.5x, indicating that the stock is undervalued on an enterprise value basis. This suggests that the market is not fully appreciating the company's earnings potential. However, the EV/EBITDA ratio does not take into account the company's high level of debt, which could be a factor in the market's valuation.
The absence of free cash flow data makes it difficult to assess the company's valuation using a free cash flow yield. However, the company's negative free cash flow suggests that its free cash flow yield is negative, which is a cause for concern. A negative free cash flow yield indicates that the company is not generating enough cash to cover its capital expenditures and debt obligations.
Compared to its historical performance, WRB's current valuation is in line with its historical averages. The company's P/E ratio has historically traded within a range of 10x to 20x, and its EV/EBITDA ratio has historically traded within a range of 2x to 4x. This suggests that the stock is not significantly overvalued or undervalued relative to its historical performance.
Overall, WRB's valuation appears to be fair, but not compelling. The stock is modestly undervalued compared to its peers, but its negative free cash flow and high level of debt are causes for concern. The company's future growth prospects and ability to generate positive free cash flow will be key factors in determining its future valuation. The current valuation does not offer a significant margin of safety, which is why we maintain a Hold rating.
Risk & Uncertainty
W. R. Berkley faces several specific risks and uncertainties that could impact its future performance. One of the most significant risks is the cyclical nature of the insurance industry. Insurance rates and profitability tend to fluctuate over time, with periods of soft pricing and intense competition followed by periods of hardening rates and improved profitability. A prolonged period of soft pricing could negatively impact WRB's underwriting profitability and revenue growth.
Another risk is the potential for increased competition from other insurers and alternative risk transfer mechanisms. The insurance industry is highly competitive, with numerous players vying for market share. New entrants and innovative technologies could disrupt the industry and erode WRB's competitive advantage. The rise of alternative risk transfer mechanisms, such as insurance-linked securities and captive insurance companies, could also reduce demand for traditional insurance products.
Regulatory changes and compliance costs also pose a risk to WRB's business. The insurance industry is heavily regulated, and changes in regulations could increase the company's compliance costs and restrict its ability to operate in certain markets. The company is also subject to ongoing regulatory scrutiny, which could result in fines, penalties, and other adverse consequences.
The company's high level of debt is another significant risk. A high debt burden could constrain the company's financial flexibility and increase its vulnerability to adverse economic conditions. Rising interest rates could also increase the company's debt service costs and reduce its profitability. The negative free cash flow further exacerbates this risk, as it limits the company's ability to deleverage.
Finally, catastrophic events, such as hurricanes, earthquakes, and wildfires, could result in significant losses for WRB. The company's exposure to catastrophic events varies depending on its geographic footprint and the types of insurance products it offers. A major catastrophic event could negatively impact the company's earnings and capital position.
Bulls Say / Bears Say
The Bull Case
BULL VIEWWRB's decentralized operating model allows for nimbleness and specialization, leading to superior underwriting results and outperformance in niche markets.
BULL VIEWThe company's consistent revenue growth and high ROE demonstrate its ability to effectively manage risk and generate attractive returns for shareholders.
BULL VIEWWRB's strong balance sheet and conservative investment strategy provide a buffer against adverse market conditions and support its long-term growth prospects.
The Bear Case
BEAR VIEWWRB's negative free cash flow and high debt-to-equity ratio raise concerns about its financial flexibility and long-term sustainability.
BEAR VIEWThe cyclical nature of the insurance industry and increasing competition could negatively impact WRB's underwriting profitability and revenue growth.
BEAR VIEWWRB's relatively low operating margin compared to the sector average suggests that it is not as efficient as its peers and may struggle to maintain profitability in a challenging environment.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score WRB and 4,400+ other equities.
BERKLEY W R CORP exhibits a 115% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
3.9%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
15.1%
Sector: 21.8%
Net Margin
Bottom-line profitability
11.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta-29%
Income Projection audit
A $10,000 investment would generate approximately $175 annually in dividends at the current trailing rate.
