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16 hours ago
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W.R. Berkley Q2 Earnings and Revenues Surpass Estimates
W.R. Berkley Corporation's WRB second-quarter 2025 operating income of $1.05 per share beat the Zacks Consensus Estimate of $1.03 per share. The bottom line increased about 1% year over year. The insurer benefited from higher underwriting gains and improved investment income, notwithstanding above-average industry catastrophe losses during the quarter. Behind the Headlines W.R. Berkley's net premiums written were $3.4 billion, up 9.9% year over year. The figure was lower than our estimate of $3.6 revenues came in at $3.6 billion, up 7.9% year over year, on the back of higher net premiums earned as well as improved net investment income, higher insurance service fees and other income. The top line beat the consensus estimate by 1.8%. W.R. Berkley Corporation Price, Consensus and EPS Surprise W.R. Berkley Corporation price-consensus-eps-surprise-chart | W.R. Berkley Corporation Quote Net investment income grew 1.9% to $379.3 million, reflecting higher yields on expanding domestic fixed-maturity portfolio. The strength of operating cash flow continues to drive growth in net investable assets. Its current new money rates remain comfortably above average book yield, positioning WRB well for further investment income growth. Our estimate was $358.5 million. The Zacks Consensus Estimate was pegged at $358 million. Total expenses increased 11.4% to $3.1 billion due to higher losses and loss expenses. Our estimate was $3 billion. The loss ratio deteriorated 50 basis points (bps) to 63.1, while the expense ratio remained flat year over year at losses of $99.2 million in the quarter were wider than $89.7 million incurred in the year-ago quarter. The consolidated combined ratio (a measure of underwriting profitability) deteriorated 50 bps year over year to 92.1. The Zacks Consensus Estimate was 91. Segment Details Net premiums written at the Insurance segment increased 7.2% year over year to $3 billion in the quarter, primarily due to higher premiums from other liability, short-tail lines, auto, workers' compensation and professional liability. Our estimate was $3 billion. The combined ratio deteriorated 30 bps to 92.1. The Zacks Consensus Estimate was 93. Our estimate was premiums written in the Reinsurance & Monoline Excess segment increased 6.8% year over year to $337.7 million due to higher premiums at Casualty, Property and Monoline excess. The figure was lower than our estimate of $367.1 million. The combined ratio deteriorated 630 bps to 87. The Zacks Consensus Estimate was 81. Our estimate was 78.9. Financial Update W.R. Berkley exited the second quarter of 2025 with total assets worth $42.7 billion, up 5.5% from year-end 2024. Senior notes and other debt remained flat from 2024 end levels at $1.8 value per share increased 6.8% from 2024 end level to $24.50 as of June 30, flow from operations was $1.5 billion in the first half of 2025, down 11.1% year over return on equity contracted 200 bps to 20%.WRB returned $223.8 million to shareholders, consisting of $189.7 million of special dividends and $34.1 million of ordinary dividends. WRB's Zacks Rank WRB currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Performance of Other Insurers The Travelers Companies TRV reported second-quarter 2025 core income of $6.51 per share, which beat the Zacks Consensus Estimate by 83.8%. Total revenues increased 6.7% from the year-ago quarter to $12.1 billion, primarily driven by higher premiums, improved net investment income, higher fee income and other revenues. The top-line figure, however, missed the Zacks Consensus Estimate by 0.7%.Net written premiums increased 4% year over year to a record $11.5 billion, driven by strong growth across all three segments. The figure was higher than our estimate of $10.9 billion. Travelers witnessed an underwriting profit of $1 billion against a loss of $65 million incurred in the year-ago quarter. The consolidated underlying combined ratio of 84.7 improved 300 bps year over year. The combined ratio improved 990 bps year over year to 90.3 due to lower catastrophe losses, an improvement in the underlying combined ratio and higher net favorable prior year reserve development. The Zacks Consensus Estimate was pegged at Progressive Corporation's PGR second-quarter 2025 earnings per share of $4.88 beat the Zacks Consensus Estimate by 10.1%. The bottom line increased 84.1% year over year. Net premiums written were $20 billion in the quarter, up 12% from $17.9 billion a year ago. Net premiums earned grew 18% to $20.3 billion. The reported figure surpassed the Zacks Consensus Estimate of $20.1 billion. Operating revenues increased 19.5% year over year to $42.2 billion, driven by 19% higher net premiums earned, a 29.3% increase in net investment income, an 18.9% rise in fees and 28% higher service Corp. RLI reported second-quarter 2025 operating earnings of 84 cents share, beating the Zacks Consensus Estimate by 12%. The bottom line, however, decreased 2.3% from the prior-year quarter. Operating revenues for the reported quarter were $441 million, up 6.9% year over year, driven by 6% higher net premiums earned and 16% higher net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%.Underwriting income of $62.2 million decreased 11.14% year over year. The combined ratio deteriorated 300 bps year over year to 84.5. The Zacks Consensus Estimate for the metric was pegged at 88, while our estimate was 42.9. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report RLI Corp. (RLI) : Free Stock Analysis Report The Travelers Companies, Inc. (TRV) : Free Stock Analysis Report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report The Progressive Corporation (PGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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a day ago
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WR Berkley Corp (WRB) Q2 2025 Earnings Call Highlights: Record Premiums and Investment Income ...
Net Income per Diluted Share: Increased 8.7% to $1 per share or $401 million. Annualized Return on Equity: 19.1%. Operating Earnings: $420 million or $1.05 per share, with a 20% annualized return on equity. Combined Ratio: Current accident year combined ratio before cat losses was 88.4%; calendar year combined ratio was 91.6%. Underwriting Income: $261 million. Catastrophe Losses: $99 million in Q2 2025. Net Premiums Earned: Record $3.1 billion. Net Premiums Written: Record $3.4 billion. Net Investment Income: Record $379 million. Investment Income from Fixed Maturity Securities: Improved 16.5% year over year. Effective Tax Rate: 23.2%. Stockholders' Equity: Increased by $380 million to $9.3 billion. Cash and Cash Equivalents: More than $2 billion. Financial Leverage: 23.4%. Growth in Book Value per Share: 6.8% in the quarter and 14.3% year-to-date. Release Date: July 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points WR Berkley Corp (NYSE:WRB) reported a strong performance in both underwriting income and net investment income for the second quarter of 2025. Net income per diluted share increased by 8.7% over the prior year, reaching $1 per share, with an annualized return on beginning of year equity of 19.1%. Operating earnings were $420 million or $1.05 per share, yielding an annualized return on beginning of year equity of 20%. Net premiums written increased to a record $3.4 billion in the quarter, with growth in all lines of business in both segments. Record net investment income of $379 million was achieved, benefiting from ongoing growth in invested assets and favorable new money rates on fixed maturity securities. Negative Points Catastrophe losses were $99 million in the second quarter of 2025, slightly higher than the $90 million reported in the prior year's quarter. The property insurance market is becoming more competitive, particularly for larger accounts, which may impact future growth. Foreign currency losses amounted to $55 million in the quarter due to the weakening US dollar relative to other currencies. The effective tax rate was 23.2%, exceeding the US statutory rate due to taxes on foreign earnings at higher rates and state income taxes. The reinsurance marketplace is showing signs of eroding discipline, particularly in casualty lines, which could affect future profitability. Q & A Highlights Q: Just first question on growth, just thinking about the growth potential here. I know it was a tougher quarter with the property pricing deceleration, but just curious if you all still view this as sort of a 10% to 15% growth environment? Or has the last few quarters changed that? A: Look, I think we had come out with that band if you will, probably, I don't know, call it, 18 months ago, maybe 24 months ago, if you're asking my best guesstimate at this stage in spite of the number that we saw in this quarter, my view is that it's probably somewhere between 8% and 12% would be my guess as opposed to 10% to 15%. - W. Robert Berkley, Jr., President, CEO & Director Q: You mentioned tariffs and labor costs in your opening remarks. And I just wanted to understand if you're actually seeing anything coming through if that's more of like a forward-looking statement. And obviously, it's the wider range out? A: It is a forward-looking statement. We are not seeing it in any noteworthy way in our loss activity right now. At the same time, we are conscious of the fact that, that concept of timing that I referenced in conjunction with the point that you're flagging. And we want to make sure that we're not caught flat-footed. - W. Robert Berkley, Jr., President, CEO & Director Q: My first question is actually on capital. You guys didn't buy back any shares in the quarter. Just wondering what drove that decision? A: Look, ultimately, Elyse, when the day is all done, as we've shared with you and others in the past, we have a view as to how much capital we have and what type of surplus we have at any moment in time. We have a view as to what we see is opportunities potentially before us and want to make sure that we have a surplus of gas in the tank. - W. Robert Berkley, Jr., President, CEO & Director Q: Rob, on the 15% Mitsui stake, any update on the time frame and timeline there? A: I know no more than anybody else or at least anybody else who bothered to read the SEC filings. Again, I think as I don't know if we share it or not, if we didn't, I said that we, by design, have not been privy to sort of where they stand in their process because in no way, shape or form, perhaps back to one of Elyse's points, we don't want to be encumbered or restricted in any way and our ability to repurchase stock. - W. Robert Berkley, Jr., President, CEO & Director Q: Rob, you mentioned in the write-up rate increases were 7.6% ex workers' comp. And I know that you're kind of writing a more specialized, higher risk line. So I was just kind of curious, how is the workers' comp pricing doing in that arena? A: Well, thanks for the question, Andrew. The answer is that I think what you perhaps are referring to is some of the higher hazard stuff where we see growth opportunities from time to time, we saw, particularly in the first quarter. It was still there in the second quarter, but perhaps not to the same degree. - W. Robert Berkley, Jr., President, CEO & Director For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
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a day ago
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WR Berkley Corp (WRB) Q2 2025 Earnings Call Highlights: Record Premiums and Investment Income ...
Net Income per Diluted Share: Increased 8.7% to $1 per share or $401 million. Annualized Return on Equity: 19.1%. Operating Earnings: $420 million or $1.05 per share, with a 20% annualized return on equity. Combined Ratio: Current accident year combined ratio before cat losses was 88.4%; calendar year combined ratio was 91.6%. Underwriting Income: $261 million. Catastrophe Losses: $99 million in Q2 2025. Net Premiums Earned: Record $3.1 billion. Net Premiums Written: Record $3.4 billion. Net Investment Income: Record $379 million. Investment Income from Fixed Maturity Securities: Improved 16.5% year over year. Effective Tax Rate: 23.2%. Stockholders' Equity: Increased by $380 million to $9.3 billion. Cash and Cash Equivalents: More than $2 billion. Financial Leverage: 23.4%. Growth in Book Value per Share: 6.8% in the quarter and 14.3% year-to-date. Release Date: July 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points WR Berkley Corp (NYSE:WRB) reported a strong performance in both underwriting income and net investment income for the second quarter of 2025. Net income per diluted share increased by 8.7% over the prior year, reaching $1 per share, with an annualized return on beginning of year equity of 19.1%. Operating earnings were $420 million or $1.05 per share, yielding an annualized return on beginning of year equity of 20%. Net premiums written increased to a record $3.4 billion in the quarter, with growth in all lines of business in both segments. Record net investment income of $379 million was achieved, benefiting from ongoing growth in invested assets and favorable new money rates on fixed maturity securities. Negative Points Catastrophe losses were $99 million in the second quarter of 2025, slightly higher than the $90 million reported in the prior year's quarter. The property insurance market is becoming more competitive, particularly for larger accounts, which may impact future growth. Foreign currency losses amounted to $55 million in the quarter due to the weakening US dollar relative to other currencies. The effective tax rate was 23.2%, exceeding the US statutory rate due to taxes on foreign earnings at higher rates and state income taxes. The reinsurance marketplace is showing signs of eroding discipline, particularly in casualty lines, which could affect future profitability. Q & A Highlights Q: Just first question on growth, just thinking about the growth potential here. I know it was a tougher quarter with the property pricing deceleration, but just curious if you all still view this as sort of a 10% to 15% growth environment? Or has the last few quarters changed that? A: Look, I think we had come out with that band if you will, probably, I don't know, call it, 18 months ago, maybe 24 months ago, if you're asking my best guesstimate at this stage in spite of the number that we saw in this quarter, my view is that it's probably somewhere between 8% and 12% would be my guess as opposed to 10% to 15%. - W. Robert Berkley, Jr., President, CEO & Director Q: You mentioned tariffs and labor costs in your opening remarks. And I just wanted to understand if you're actually seeing anything coming through if that's more of like a forward-looking statement. And obviously, it's the wider range out? A: It is a forward-looking statement. We are not seeing it in any noteworthy way in our loss activity right now. At the same time, we are conscious of the fact that, that concept of timing that I referenced in conjunction with the point that you're flagging. And we want to make sure that we're not caught flat-footed. - W. Robert Berkley, Jr., President, CEO & Director Q: My first question is actually on capital. You guys didn't buy back any shares in the quarter. Just wondering what drove that decision? A: Look, ultimately, Elyse, when the day is all done, as we've shared with you and others in the past, we have a view as to how much capital we have and what type of surplus we have at any moment in time. We have a view as to what we see is opportunities potentially before us and want to make sure that we have a surplus of gas in the tank. - W. Robert Berkley, Jr., President, CEO & Director Q: Rob, on the 15% Mitsui stake, any update on the time frame and timeline there? A: I know no more than anybody else or at least anybody else who bothered to read the SEC filings. Again, I think as I don't know if we share it or not, if we didn't, I said that we, by design, have not been privy to sort of where they stand in their process because in no way, shape or form, perhaps back to one of Elyse's points, we don't want to be encumbered or restricted in any way and our ability to repurchase stock. - W. Robert Berkley, Jr., President, CEO & Director Q: Rob, you mentioned in the write-up rate increases were 7.6% ex workers' comp. And I know that you're kind of writing a more specialized, higher risk line. So I was just kind of curious, how is the workers' comp pricing doing in that arena? A: Well, thanks for the question, Andrew. The answer is that I think what you perhaps are referring to is some of the higher hazard stuff where we see growth opportunities from time to time, we saw, particularly in the first quarter. It was still there in the second quarter, but perhaps not to the same degree. - W. Robert Berkley, Jr., President, CEO & Director For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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6 days ago
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Sterling Structural Launches CLTimber Bay System for Industrial and Commercial Buildings
Prefabricated mass timber solution delivers sustainable, high-performance warehouses, data centers and "big box" facilities with faster construction timelines and reduced embodied carbon Sterling Structural Launches CLTimber Bay System for Industrial and Commercial Buildings PHOENIX, Ill., July 17, 2025 (GLOBE NEWSWIRE) -- Sterling Structural, a leading manufacturer of cost-effective, pre-fabricated mass timber and hybrid structural systems in North America, today announced the launch of its CLTimber Bay System, a comprehensive building solution specifically designed for industrial and commercial projects including warehouses, data centers, and large-scale retail facilities. The CLTimber Bay System combines the environmental benefits of mass timber with the speed and efficiency of a pre-engineered solution. Building on Sterling's expertise in delivering large-scale industrial projects, the system addresses the growing demand for sustainable industrial and commercial buildings as corporate real estate priorities shift toward smarter building systems that support both people and the planet. "As the industrial and commercial sectors evolve, developers are prioritizing building systems that deliver both environmental performance and construction efficiency," said Michaela Harms, Vice President of Mass Timber at Sterling Structural. "Our CLTimber Bay System responds to this shift by providing a sustainable and turnkey mass timber solution that's optimized for performance, flexibility, and constructability—delivering on site, on time, and on budget." Unlike traditional mass timber suppliers, Sterling Structural provides a complete, fully engineered building solution that includes structural design, CLT supply, structural steel, connection hardware, and installation through its trusted network of partners. This integrated approach streamlines procurement, reduces job site coordination, and keeps projects on track with domestically sourced and manufactured materials that are reliably delivered to the project site. Key features of the CLTimber Bay System include: Accelerated Construction: Prefabricated panels can be installed with factory-applied Weather Resistant Barrier (WRB) to fast-track envelope completion; Simplified Installation: CLT provides a continuous structural surface, making attachment of racking, mechanical systems, or tenant improvements straightforward without additional blocking or costly field coordination; Flexible Design: Optimized grids support future adaptability for evolving industrial and commercial needs; Environmental Performance: Dramatically reduced embodied carbon compared to traditional tilt-wall construction using 100% domestically grown, regenerative timber. Sterling Structural and its complementary product, engineering and installation partners provide comprehensive environmental product data, material weight analyses, logistics benefits, and schedule advantages over traditional tilt-wall construction. The system supports developers seeking U.S.-based supply and measurable sustainability outcomes while maintaining construction efficiency and cost-effectiveness. Sterling's TerraLam® structural product line provides a competitively priced, mass timber panel that is designed for seamless integration into wall, floor, and roof applications. Sterling Structural serves as a one-stop shop for mass timber or a hybrid structural shell. Its panels are certified to the PRG 320 performance standard by the International Code Council and have an Environmental Product Declaration (EPD) third-party verified by EPD Hub. About Sterling StructuralSterling Structural is a division within Sterling Solutions, America's leading manufacturer of sustainably-sourced, domestically-produced, high-quality and cost-effective Cross Laminated Timber (CLT) mats, panels and systems. Our TerraLam® structural product line provides a competitively priced, mass timber panel that is designed for seamless integration into wall, floor, and roof applications. Sterling Structural serves as a one-stop shop for mass timber or a hybrid structural shell. Our panels are certified to the PRG 320 performance standard by the International Code Council and have an Environmental Product Declaration (EPD) third-party verified by EPD Hub. Sterling has manufacturing facilities in Phoenix, Ill., and Lufkin, Tex., with an annual production capacity of 700,000 cubic meters. More information is available at A photo accompanying this announcement is available at CONTACT: Media Contact John Williams, Scoville PR for Sterling +1-206-660-5503, jwilliams@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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14-07-2025
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Earnings Preview: W.R. Berkley (WRB) Q2 Earnings Expected to Decline
Wall Street expects a year-over-year decline in earnings on higher revenues when W.R. Berkley (WRB) reports results for the quarter ended June 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 21. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This insurance company is expected to post quarterly earnings of $1.03 per share in its upcoming report, which represents a year-over-year change of -1%. Revenues are expected to be $3.58 billion, up 6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.47% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For W.R. Berkley, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.46%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that W.R. Berkley will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that W.R. Berkley would post earnings of $1.01 per share when it actually produced earnings of $1.01, delivering no surprise. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. W.R. Berkley doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Insurance - Property and Casualty industry, Selective Insurance (SIGI), is soon expected to post earnings of $1.55 per share for the quarter ended June 2025. This estimate indicates a year-over-year change of +240.9%. Revenues for the quarter are expected to be $1.31 billion, up 9.7% from the year-ago quarter. The consensus EPS estimate for Selective Insurance has remained unchanged over the last 30 days. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.94%. When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Selective Insurance will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report W.R. Berkley Corporation (WRB) : Free Stock Analysis Report Selective Insurance Group, Inc. (SIGI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
