W. R. Berkley Corporation Reports Second Quarter 2025 Results
Net Premiums Written Increased to a Record $3.4 Billion;
Return on Equity of 19.1% and Operating Return on Equity of 20.0%
Greenwich, CT, July 21, 2025 - W. R. Berkley Corporation (NYSE: WRB) today reported its second quarter 2025 results.
Summary Financial Data
(Amounts in thousands, except per share data)
Second Quarter
Six Months
2025
2024
2025
2024
Gross premiums written
$
3,977,769
$
3,717,772
$
7,661,708
$
7,080,528
Net premiums written
3,351,439
3,126,779
6,484,742
5,978,070
Net income to common stockholders
401,288
371,909
818,860
814,380
Net income per diluted share
1.00
0.92
2.05
2.01
Operating income (1)
420,486
410,171
840,442
823,058
Operating income per diluted share (1)
1.05
1.02
2.10
2.03
Return on equity (2)
19.1
%
20.0
%
19.5
%
21.8
%
Operating return on equity (1) (2)
20.0
%
22.0
%
20.0
%
22.1
%
(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). Commencing with this quarter, the Company’s 2024 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.
W. R. Berkley Corporation 2
Second quarter highlights included:
•Return on equity of 19.1% and operating return on equity of 20.0%.
•Record net premiums written grew to $3.4 billion.
•The current accident year combined ratio before catastrophe losses of 3.2 loss ratio points was 88.4%.
•The reported combined ratio was 91.6%, including current accident year catastrophe losses of $99.2 million.
•Average rate increases excluding workers' compensation were approximately 7.6%.
•Record net investment income of $379.3 million.
•Book value per share grew 6.8% in the quarter, before dividends.
•Total capital returned to shareholders was $223.8 million, consisting of $189.7 million of special dividends and $34.1 million of ordinary dividends.
•Record common stockholders' equity of $9.3 billion.
The Company commented:
Our strong performance continued into the second quarter of 2025, with an annualized return on beginning-of-year common stockholders' equity of 19.1%. Net income grew year-over-year, driven by higher underwriting gains and improved investment income, notwithstanding above-average industry catastrophe losses during the quarter. Book value per share grew 6.8%, before $223.8 million of capital returned to shareholders through special and ordinary dividends.
Our focus on business with the highest margin potential resulted in record quarterly net premiums written of $3.4 billion. Net investment income rose both year-over-year and sequentially to a quarterly record, fueled by higher yields on our expanding domestic fixed-maturity portfolio. The strength of our operating cash flow continues to drive growth in net investable assets, and our current new money rates remain comfortably above our average book yield, positioning us well for further investment income growth.
We continue to carefully manage the underwriting cycle in each market served by our specialized businesses. This disciplined approach has supported superior long-term, risk-adjusted returns and consistently lower volatility over decades. We remain confident in our ability to deliver exceptional value to shareholders throughout the remainder of 2025 and well into the future.
W. R. Berkley Corporation 3
Webcast Conference Call
The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on July 21, 2025, 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.
W. R. Berkley Corporation 4
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 2025 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 governmental 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 cybersecurity-related risks; natural and man-made catastrophic losses, including as a result of terrorist activities; the impact of climate change, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, the risk of recession, changing 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, on our results and financial condition; cyber security breaches of our information technology systems and the information technology systems of our vendors and other third parties; the use of artificial intelligence technologies by us or third-parties on which we rely could expose us to technological, security, legal, and other risks; the risk of future pandemics, as well as continuing effects of the COVID-19 pandemic; 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; 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 2025 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.
# # #
W. R. Berkley Corporation 5
Consolidated Financial Summary
(Amounts in thousands, except per share data)
Second Quarter
Six Months
2025
2024
2025
2024
Revenues:
Net premiums written
$
3,351,439
$
3,126,779
$
6,484,742
$
5,978,070
Change in net unearned premiums
(253,254)
(280,364)
(374,176)
(367,308)
Net premiums earned
3,098,185
2,846,415
6,110,566
5,610,762
Net investment income
379,303
372,129
739,595
691,967
Net investment gains (losses):
Net realized and unrealized gains (losses) on investments
30,533
(60,306)
46,244
(48,803)
Change in allowance for credit losses on investments
440
1,794
1,084
16,070
Net investment gains (losses)
30,973
(58,512)
47,328
(32,733)
Revenues from non-insurance businesses
128,839
125,705
257,748
246,696
Insurance service fees
32,757
27,597
61,686
52,917
Other income
751
698
1,284
1,196
Total Revenues
3,670,808
3,314,032
7,218,207
6,570,805
Expenses:
Loss and loss expenses
1,955,424
1,780,596
3,856,216
3,444,374
Other operating costs and expenses
1,039,307
892,935
1,989,217
1,761,524
Expenses from non-insurance businesses
122,437
121,120
248,801
239,727
Interest expense
31,777
31,708
63,504
63,436
Total expenses
3,148,945
2,826,359
6,157,738
5,509,061
Income before income tax
521,863
487,673
1,060,469
1,061,744
Income tax expense
(121,155)
(115,788)
(242,411)
(247,824)
Net Income before noncontrolling interests
400,708
371,885
818,058
813,920
Noncontrolling interest
580
24
802
460
Net income to common stockholders
$
401,288
$
371,909
$
818,860
$
814,380
Net income per share:
Basic
$
1.01
$
0.93
$
2.06
$
2.03
Diluted
$
1.00
$
0.92
$
2.05
$
2.01
Average shares outstanding (1):
Basic
397,016
400,273
396,972
401,295
Diluted
400,368
403,737
400,098
404,679
(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.
W. R. Berkley Corporation 6
Business Segment Operating Results
(Amounts in thousands, except ratios) (1)
Second Quarter
Six Months
2025
2024
2025
2024
Insurance:
Gross premiums written
$
3,606,887
$
3,360,850
$
6,823,840
$
6,281,900
Net premiums written
3,013,703
2,810,448
5,708,158
5,256,163
Net premiums earned
2,728,784
2,484,569
5,371,291
4,883,338
Pre-tax income
512,672
490,053
1,022,177
968,202
Loss ratio
63.8
%
64.0
%
63.9
%
62.9
%
Expense ratio
28.3
%
28.4
%
28.0
%
28.4
%
GAAP Combined ratio
92.1
%
92.4
%
91.9
%
91.3
%
Reinsurance & Monoline Excess:
Gross premiums written
$
370,882
$
356,922
$
837,868
$
798,628
Net premiums written
337,736
316,331
776,584
721,907
Net premiums earned
369,401
361,846
739,275
727,424
Pre-tax income
127,299
124,449
247,679
252,074
Loss ratio
57.7
%
52.8
%
57.7
%
51.3
%
Expense ratio
29.7
%
29.0
%
28.7
%
29.4
%
GAAP Combined ratio
87.4
%
81.8
%
86.4
%
80.7
%
Corporate and Eliminations:
Net investment gains (losses)
$
30,973
$
(58,512)
$
47,328
$
(32,733)
Interest expense
(31,777)
(31,708)
(63,504)
(63,436)
Other expenses
(117,304)
(36,609)
(193,211)
(62,363)
Pre-tax loss
(118,108)
(126,829)
(209,387)
(158,532)
Consolidated:
Gross premiums written
$
3,977,769
$
3,717,772
$
7,661,708
$
7,080,528
Net premiums written
3,351,439
3,126,779
6,484,742
5,978,070
Net premiums earned
3,098,185
2,846,415
6,110,566
5,610,762
Pre-tax income
521,863
487,673
1,060,469
1,061,744
Loss ratio
63.1
%
62.6
%
63.1
%
61.4
%
Expense ratio
28.5
%
28.5
%
28.2
%
28.6
%
GAAP Combined ratio
91.6
%
91.1
%
91.3
%
90.0
%
(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.
W. R. Berkley Corporation 7
Supplemental Information
(Amounts in thousands)
Second Quarter
Six Months
2025
2024
2025
2024
Net premiums written:
Other liability
$
1,218,988
$
1,131,676
$
2,327,253
$
2,147,291
Short-tail lines (1)
706,298
643,101
1,306,490
1,175,442
Auto
448,678
408,178
837,832
756,760
Workers' compensation
340,891
332,432
681,498
637,064
Professional liability
298,848
295,061
555,085
539,606
Total Insurance
3,013,703
2,810,448
5,708,158
5,256,163
Casualty (2)
188,929
188,117
375,718
378,136
Property (2)
115,926
102,158
248,084
200,820
Monoline excess
32,881
26,056
152,782
142,951
Total Reinsurance & Monoline Excess
337,736
316,331
776,584
721,907
Total
$
3,351,439
$
3,126,779
$
6,484,742
$
5,978,070
Current accident year losses from catastrophes:
Insurance
$
77,631
$
86,632
$
148,248
$
114,082
Reinsurance & Monoline Excess
21,603
3,047
62,094
6,103
Total
$
99,234
$
89,679
$
210,342
$
120,185
Net Investment income:
Core portfolio (3)
$
328,363
$
329,971
$
645,303
$
661,147
Investment funds
27,268
25,476
54,291
(3,873)
Arbitrage trading account
23,672
16,682
40,001
34,693
Total
$
379,303
$
372,129
$
739,595
$
691,967
Net realized and unrealized gains (losses) on investments:
Net realized (losses) gains on investments
$
(33,097)
$
6,411
$
(37,333)
$
(7,898)
Change in unrealized gains (losses) on equity securities
63,630
(66,717)
83,577
(40,905)
Total
$
30,533
$
(60,306)
$
46,244
$
(48,803)
Other operating costs and expenses:
Policy acquisition and insurance operating expenses
$
882,099
$
811,997
$
1,720,345
$
1,603,529
Insurance service expenses
24,287
23,084
47,534
44,523
Net foreign currency losses (gains)
55,396
(10,118)
74,774
(23,295)
Other costs and expenses
77,525
67,972
146,564
136,767
Total
$
1,039,307
$
892,935
$
1,989,217
$
1,761,524
Cash flow from operations
$
703,806
$
881,330
$
1,447,624
$
1,627,565
Reconciliation of net income to operating income (4):
Net income
$
401,288
$
371,909
$
818,860
$
814,380
Pre-tax investment (gains) losses, net of related expenses
(30,973)
58,631
(47,328)
32,733
Pre-tax net foreign currency losses (gains)
55,396
(10,118)
74,774
(23,295)
Income tax benefit
(5,225)
(10,251)
(5,864)
(760)
Operating income after-tax
$
420,486
$
410,171
$
840,442
$
823,058
(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. Commencing with this quarter, the Company’s 2024 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.
W. R. Berkley Corporation 8
Selected Balance Sheet Information
(Amounts in thousands, except per share data)
June 30, 2025
December 31, 2024
Net invested assets (1)
$
31,577,384
$
29,780,638
Total assets
42,658,057
40,448,635
Reserves for losses and loss expenses
21,496,123
20,368,030
Senior notes and other debt
1,831,638
1,831,158
Subordinated debentures
1,010,168
1,009,808
Common stockholders' equity (2)
9,294,537
8,395,111
Common stock outstanding (3)
379,385
380,066
Book value per share (4)
24.50
22.09
Tangible book value per share (4)
23.88
21.46
(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 June 30, 2025, reflected in common stockholders' equity are after-tax unrealized investment losses of $249 million and unrealized currency translation losses of $324 million. As of December 31, 2024, reflected in common stockholders' equity are after-tax unrealized investment losses of $517 million and unrealized currency translation losses of $417 million.
(3)During the six months ended June 30, 2025, the Company repurchased 850,000 shares of its common stock for $49.2 million. During the three months ended June 30, 2025, the Company did not repurchase any shares of its common stock. 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.
W. R. Berkley Corporation 9
Investment Portfolio
June 30, 2025
(Amounts in thousands, except percentages)
Carrying Value
Percent of Total
Fixed maturity securities:
United States government and government agencies
$
3,101,062
9.8
%
State and municipal:
Special revenue
1,353,385
4.3
%
State general obligation
284,130
0.9
%
Local general obligation
275,378
0.9
%
Corporate backed
184,200
0.6
%
Pre-refunded
77,477
0.2
%
Total state and municipal
2,174,570
6.9
%
Mortgage-backed securities:
Agency
3,787,350
12.0
%
Commercial
359,500
1.1
%
Residential - Prime
181,086
0.6
%
Residential - Alt A
1,723
0.0
%
Total mortgage-backed securities
4,329,659
13.7
%
Asset-backed securities
3,853,435
12.2
%
Corporate:
Industrial
3,672,546
11.6
%
Financial
3,452,175
11.0
%
Utilities
1,151,418
3.6
%
Other
482,637
1.5
%
Total corporate
8,758,776
27.7
%
Foreign government
1,875,654
6.0
%
Total fixed maturity securities (1)
24,093,156
76.3
%
Equity securities available for sale:
Common stocks
719,570
2.3
%
Preferred stocks
542,622
1.7
%
Total equity securities available for sale
1,262,192
4.0
%
Cash and cash equivalents (2)
2,076,351
6.6
%
Investment funds
1,492,258
4.7
%
Real estate
1,294,505
4.1
%
Arbitrage trading account
1,034,557
3.3
%
Loans receivable
324,365
1.0
%
Net invested assets
$
31,577,384
100.0
%
(1)Total fixed maturity securities had an average rating of AA- and an average duration of 2.8 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.