EX-99.1 2 wrb63020258-kex991.htm EX-99.1 Document

NEWS
RELEASE
W. R. Berkley Corporation
475 Steamboat Road
Greenwich, Connecticut 06830
(203) 629-3000
             
FOR IMMEDIATE RELEASE     CONTACT:    Karen A. Horvath
Vice President - External
Financial Communications
(203) 629-3000


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 QuarterSix Months
2025202420252024
Gross premiums written$3,977,769 $3,717,772 $7,661,708 $7,080,528 
Net premiums written3,351,439 3,126,779 6,484,742 5,978,070 
Net income to common stockholders401,288 371,909 818,860 814,380 
Net income per diluted share1.00 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 QuarterSix Months
2025202420252024
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 earned3,098,185 2,846,415 6,110,566 5,610,762 
  Net investment income379,303 372,129 739,595 691,967 
  Net investment gains (losses):
  Net realized and unrealized gains (losses) on investments30,533 (60,306)46,244 (48,803)
   Change in allowance for credit losses on investments440 1,794 1,084 16,070 
  Net investment gains (losses)30,973 (58,512)47,328 (32,733)
  Revenues from non-insurance businesses128,839 125,705 257,748 246,696 
  Insurance service fees32,757 27,597 61,686 52,917 
  Other income751 698 1,284 1,196 
       Total Revenues3,670,808 3,314,032 7,218,207 6,570,805 
Expenses:
   Loss and loss expenses1,955,424 1,780,596 3,856,216 3,444,374 
   Other operating costs and expenses1,039,307 892,935 1,989,217 1,761,524 
   Expenses from non-insurance businesses122,437 121,120 248,801 239,727 
   Interest expense31,777 31,708 63,504 63,436 
     Total expenses3,148,945 2,826,359 6,157,738 5,509,061 
     Income before income tax521,863 487,673 1,060,469 1,061,744 
   Income tax expense(121,155)(115,788)(242,411)(247,824)
     Net Income before noncontrolling interests400,708 371,885 818,058 813,920 
   Noncontrolling interest580 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):
 Basic397,016 400,273 396,972 401,295 
 Diluted400,368 403,737 400,098 404,679 


(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 QuarterSix Months
2025202420252024
Insurance:
   Gross premiums written$3,606,887 $3,360,850 $6,823,840 $6,281,900 
   Net premiums written3,013,703 2,810,448 5,708,158 5,256,163 
   Net premiums earned2,728,784 2,484,569 5,371,291 4,883,338 
   Pre-tax income512,672 490,053 1,022,177 968,202 
   Loss ratio63.8 %64.0 %63.9 %62.9 %
   Expense ratio28.3 %28.4 %28.0 %28.4 %
   GAAP Combined ratio92.1 %92.4 %91.9 %91.3 %
Reinsurance & Monoline Excess:
   Gross premiums written$370,882 $356,922 $837,868 $798,628 
   Net premiums written337,736 316,331 776,584 721,907 
   Net premiums earned369,401 361,846 739,275 727,424 
   Pre-tax income127,299 124,449 247,679 252,074 
   Loss ratio57.7 %52.8 %57.7 %51.3 %
   Expense ratio29.7 %29.0 %28.7 %29.4 %
   GAAP Combined ratio87.4 %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 written3,351,439 3,126,779 6,484,742 5,978,070 
   Net premiums earned3,098,185 2,846,415 6,110,566 5,610,762 
   Pre-tax income 521,863 487,673 1,060,469 1,061,744 
   Loss ratio63.1 %62.6 %63.1 %61.4 %
   Expense ratio28.5 %28.5 %28.2 %28.6 %
   GAAP Combined ratio91.6 %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
2025202420252024
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 
   Auto448,678 408,178 837,832 756,760 
   Workers' compensation340,891 332,432 681,498 637,064 
   Professional liability298,848 295,061 555,085 539,606 
     Total Insurance3,013,703 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 Excess337,736 316,331 776,584 721,907 
          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 Excess21,603 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 funds27,268 25,476 54,291 (3,873)
   Arbitrage trading account23,672 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 securities63,630 (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 expenses24,287 23,084 47,534 44,523 
   Net foreign currency losses (gains)55,396 (10,118)74,774 (23,295)
   Other costs and expenses77,525 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, 2025December 31,
2024
Net invested assets (1)$31,577,384 $29,780,638 
Total assets42,658,057 40,448,635 
Reserves for losses and loss expenses21,496,123 20,368,030 
Senior notes and other debt1,831,638 1,831,158 
Subordinated debentures1,010,168 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 ValuePercent of Total
Fixed maturity securities:
   United States government and government agencies$3,101,062 9.8 %
   State and municipal:
        Special revenue1,353,385 4.3 %
        State general obligation284,130 0.9 %
        Local general obligation275,378 0.9 %
        Corporate backed184,200 0.6 %
        Pre-refunded77,477 0.2 %
            Total state and municipal2,174,570 6.9 %
   Mortgage-backed securities:
        Agency3,787,350 12.0 %
        Commercial359,500 1.1 %
        Residential - Prime181,086 0.6 %
        Residential - Alt A1,723 0.0 %
            Total mortgage-backed securities4,329,659 13.7 %
   Asset-backed securities3,853,435 12.2 %
   Corporate:
        Industrial3,672,546 11.6 %
        Financial3,452,175 11.0 %
        Utilities1,151,418 3.6 %
        Other482,637 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 stocks719,570 2.3 %
   Preferred stocks542,622 1.7 %
            Total equity securities available for sale1,262,192 4.0 %
Cash and cash equivalents (2)2,076,351 6.6 %
Investment funds1,492,258 4.7 %
Real estate1,294,505 4.1 %
Arbitrage trading account1,034,557 3.3 %
Loans receivable324,365 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.