Net Income Increased 39.8% to $511.0 Million;
Return on Equity of 24.3% and Operating Return on Equity of 21.0%
W. R.Berkley Corporation (NYSE: WRB)today reported its third quarter 2025 results.
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Summary Financial Data(Amounts in thousands, except per share data) Third Quarter Nine Months 2025 2024 2025 2024Gross premiums written $ 3,836,256 $ 3,633,278 $ 11,497,964 $ 10,713,806Net premiums written 3,226,930 3,057,276 9,711,672 9,035,346Net income to common stockholders 511,032 365,634 1,329,892 1,180,014Net income per diluted share 1.28 0.91 3.32 2.92Operating income (1) 440,198 393,003 1,280,364 1,216,061Operating income per diluted share (1) 1.10 0.98 3.20 3.01Return on equity (2) 24.3% 19.6% 21.1% 21.1%Operating return on equity (1) (2) 21.0% 21.1% 20.3% 21.7%
(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 the second quarter of 2025, 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.
Third quarter highlights included:
— Return on equity of 24.3% and operating return on equity of 21.0%.
— Net income grew 39.8% to $511.0 million.
— Average rate increases excluding workers' compensation were approximately 7.6%.
— Gross and net premiums written grew to $3.8 billion and $3.2 billion, respectively.
— The current accident year combined ratio before catastrophe losses of 2.5 loss ratio points was 88.4%.
— The reported combined ratio was 90.9%, including current accident year catastrophe losses of $78.5 million.
— Net investment income of $351.2 million driven by core portfolio increase of 9.4%.
— Book value per share grew 5.8%, before dividends and share repurchases.
— Record common stockholders' equity of $9.8 billion.
Management commented:
The Company delivered strong third quarter results highlighted by a 24.3% return on beginning of year shareholders' equity, reflecting continued strength in both underwriting and investment income. Book value per share increased 5.8%, before dividends and share repurchases.
Our decentralized structure and focus on specialty niche markets continue to differentiate us, enabling growth while maintaining rate adequacy and underwriting discipline. This approach resulted in another strong quarterly combined ratio of 90.9%.
Fixed-maturity investment income increased 9.8% over the corresponding period of 2024. The Company's new money rate continues to exceed the book yield of our fixed-maturity securities. The strength of our operating cash flow continues to grow our investable assets and will continue to make a positive contribution to investment income.
Our disciplined underwriting, anchored in our focus on long-term risk-adjusted return, continues to drive superior performance across market cycles. We believe the Company remains well-positioned to create exceptional value for our shareholders throughout the remainder of 2025 and beyond.
Webcast Conference Call
The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on October 20, 2025, at 5:00 p.m. eastern time. The conference call will be webcast live on the Company's website athttps://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 2025 and beyond, are based upon the Company's historical performance and on current plans, estimates and expectations. Forward-looking statements are generally, although not always, identified by words such as “may,” “should,” “expects,” “provides,” “anticipates,” “assumes,” “can,” “will,” “meets,” “could,” “likely,” “intends,” “might,” “predicts,” “seeks,” “would,” “believes,” “estimates,” “plans,” “continues,” or similar expressions. 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 a prolonged U.S. government shutdown on macroeconomic conditions; 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.
Consolidated Financial Summary(Amounts in thousands, except per share data) Third Quarter Nine Months 2025 2024 2025 2024Revenues:Net premiums written $ 3,226,930 $ 3,057,276 $ 9,711,672 $ 9,035,346Change in net unearned premiums (70,548) (130,453) (444,724) (497,761)Net premiums earned 3,156,382 2,926,823 9,266,948 8,537,585Net investment income 351,238 323,756 1,090,833 1,015,723Net investment gains (losses):Net realized and unrealized gains (losses) on investments 78,800 (23,362) 125,044 (72,165)Change in allowance for credit losses on investments 160 15,276 1,244 31,347Net investment gains (losses) 78,960 (8,086) 126,288 (40,818)Revenues from non-insurance businesses 150,335 128,610 408,083 375,307Insurance service fees 30,924 28,666 92,610 81,583Other income 397 610 1,681 1,804Total Revenues 3,768,236 3,400,379 10,986,443 9,971,184Expenses:Loss and loss expenses 1,968,857 1,825,960 5,825,073 5,270,334Other operating costs and expenses 975,333 943,365 2,964,550 2,704,890Expenses from non-insurance businesses 144,176 124,885 392,976 364,612Interest expense 31,760 31,720 95,265 95,156Total expenses 3,120,126 2,925,930 9,277,864 8,434,992Income before income tax 648,110 474,449 1,708,579 1,536,192Income tax expense (136,141) (109,135) (378,551) (356,958)Net Income before noncontrolling interests 511,969 365,314 1,330,028 1,179,234Noncontrolling interest (937) 320 (136) 780Net income to common stockholders $ 511,032 $ 365,634 $ 1,329,892 $ 1,180,014Net income per share:Basic $ 1.29 $ 0.92 $ 3.35 $ 2.95Diluted $ 1.28 $ 0.91 $ 3.32 $ 2.92Average shares outstanding (1):Basic 397,220 398,338 397,056 400,302Diluted 400,204 401,817 400,306 404,053
(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) Third Quarter Nine Months 2025 2024 2025 2024Insurance:Gross premiums written $ 3,393,023 $ 3,219,128 $ 10,216,863 $ 9,501,027Net premiums written 2,809,743 2,673,275 8,517,901 7,929,439Net premiums earned 2,773,009 2,564,490 8,144,300 7,447,828Pre-tax income 474,538 469,421 1,496,715 1,437,623Loss ratio 63.9% 63.1% 63.9% 63.0%Expense ratio 28.4% 28.4% 28.1% 28.4%GAAP Combined ratio 92.3% 91.5% 92.0% 91.4%Reinsurance & Monoline Excess:Gross premiums written $ 443,233 $ 414,150 $ 1,281,101 $ 1,212,779Net premiums written 417,187 384,001 1,193,771 1,105,907Net premiums earned 383,373 362,333 1,122,648 1,089,757Pre-tax income 144,008 105,225 391,687 357,299Loss ratio 51.3% 57.0% 55.5% 53.2%Expense ratio 29.8% 29.7% 29.1% 29.5%GAAP Combined ratio 81.1% 86.7% 84.6% 82.7%Corporate and Eliminations:Net investment gains (losses) $ 78,960 $ (8,086) $ 126,288 $ (40,818)Interest expense (31,760) (31,720) (95,265) (95,156)Other expenses (17,636) (60,391) (210,846) (122,756)Pre-tax income (loss) 29,564 (100,197) (179,823) (258,730)Consolidated:Gross premiums written $ 3,836,256 $ 3,633,278 $ 11,497,964 $ 10,713,806Net premiums written 3,226,930 3,057,276 9,711,672 9,035,346Net premiums earned 3,156,382 2,926,823 9,266,948 8,537,585Pre-tax income 648,110 474,449 1,708,579 1,536,192Loss ratio 62.4% 62.4% 62.9% 61.7%Expense ratio 28.5% 28.5% 28.2% 28.6%GAAP Combined ratio 90.9% 90.9% 91.1% 90.3%
(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) Third Quarter Nine Months 2025 2024 2025 2024Net premiums written:Other liability $ 1,092,550 $ 1,066,005 $ 3,419,802 $ 3,213,296Short-tail lines (1) 663,017 592,913 1,969,507 1,768,355Auto 416,956 413,260 1,254,788 1,170,020Workers' compensation 330,181 302,179 1,011,679 939,243Professional liability 307,039 298,918 862,125 838,525Total Insurance 2,809,743 2,673,275 8,517,901 7,929,439Casualty (2) 192,694 189,386 568,412 567,522Property (2) 119,671 106,106 367,755 306,925Monoline excess 104,822 88,509 257,604 231,460Total Reinsurance & Monoline Excess 417,187 384,001 1,193,771 1,105,907Total $ 3,226,930 $ 3,057,276 $ 9,711,672 $ 9,035,346Current accident year losses from catastrophes:Insurance $ 69,826 $ 76,848 $ 218,073 $ 190,931Reinsurance & Monoline Excess 8,691 20,970 70,785 27,073Total $ 78,517 $ 97,818 $ 288,858 $ 218,004Net Investment income:Core portfolio (3) $ 329,508 $ 301,146 $ 974,811 $ 962,293Investment funds 5,421 4,741 59,713 868Arbitrage trading account 16,309 17,869 56,309 52,562Total $ 351,238 $ 323,756 $ 1,090,833 $ 1,015,723Net realized and unrealized gains (losses) on investments:Net realized gains (losses) on investments $ 69,210 $ (21,825) $ 31,877 $ (29,723)Change in unrealized gains (losses) on equity securities 9,590 (1,537) 93,167 (42,442)Total $ 78,800 $ (23,362) $ 125,044 $ (72,165)Other operating costs and expenses:Policy acquisition and insurance operating expenses $ 900,312 $ 835,376 $ 2,620,657 $ 2,438,905Insurance service expenses 22,711 21,786 70,245 66,309Net foreign currency (gains) losses (12,009) 24,619 62,765 1,324Other costs and expenses 64,319 61,584 210,883 198,352Total $ 975,333 $ 943,365 $ 2,964,550 $ 2,704,890Cash flow from operations $ 1,139,860 $ 1,240,770 $ 2,587,484 $ 2,868,335Reconciliation of net income to operating income (4):Net income $ 511,032 $ 365,634 $ 1,329,892 $ 1,180,014Pre-tax investment (gains) losses, net of related expenses (78,305) 8,086 (125,985) 40,818Pre-tax net foreign currency (gains) losses (12,009) 24,619 62,765 1,324Income tax expense (benefit) 19,480 (5,336) 13,692 (6,095)Operating income after-tax $ 440,198 $ 393,003 $ 1,280,364 $ 1,216,061
(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 the second quarter of 2025, 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.
Selected Balance Sheet Information(Amounts in thousands, except per share data) September 30, December 31, 2025 2024Net invested assets (1) $ 32,815,947 $ 29,780,638Total assets 43,715,217 40,448,635Reserves for losses and loss expenses 21,757,035 20,368,030Senior notes and other debt 1,829,511 1,831,158Subordinated debentures 1,010,347 1,009,808Common stockholders' equity (2) 9,798,892 8,395,111Common stock outstanding (3) 379,877 380,066Book value per share (4) 25.79 22.09Tangible book value per share (4) 25.18 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 September 30, 2025, reflected in common stockholders' equity are after-tax unrealized investment losses of $177 million and unrealized currency translation losses of $329 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 nine months ended September 30, 2025, the Company repurchased 1,200,000 shares of its common stock for $73.8 million. During the three months ended September 30, 2025, the Company repurchased 350,000 shares of its common stock for $24.6 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 PortfolioSeptember 30, 2025(Amounts in thousands, except percentages) Carrying Value Percent of TotalFixed maturity securities:United States government and government agencies $ 3,478,237 10.6%State and municipal:Special revenue 1,258,705 3.8%State general obligation 261,797 0.8%Local general obligation 225,190 0.7%Corporate backed 181,492 0.6%Pre-refunded 75,319 0.2%Total state and municipal 2,002,503 6.1%Mortgage-backed securities:Agency 4,450,198 13.6%Commercial 331,629 0.9%Residential – Prime 188,034 0.6%Residential – Alt A 1,538 0.0%Total mortgage-backed securities 4,971,399 15.1%Asset-backed securities 3,831,174 11.7%Corporate:Industrial 3,705,998 11.3%Financial 3,544,403 10.8%Utilities 1,252,731 3.8%Other 237,640 0.7%Total corporate 8,740,772 26.6%Foreign government 1,923,864 5.9%Total fixed maturity securities (1) 24,947,949 76.0%Equity securities available for sale:Common stocks 721,950 2.2%Preferred stocks 660,482 2.0%Total equity securities available for sale 1,382,432 4.2%Cash and cash equivalents (2) 2,352,117 7.1%Investment funds 1,430,991 4.4%Real estate 1,305,299 4.0%Arbitrage trading account 1,070,304 3.3%Loans receivable 326,855 1.0%Net invested assets $ 32,815,947 100.0%
(1) Total fixed maturity securities had an average rating of AA- and an average duration of 2.9 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.
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SOURCE W.R. BERKLEY CORPORATION
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