W.R. Berkley Corporation (NYSE: WRB) Stock: Delivers Strong Q125 Results Despite Catastrophe Losses

TLDR

WRB reported Q1 net income of $418M or $1.04 per share. Net premiums written rose to $3.1B, driven by 10.2% growth in the insurance segment. Net investment income jumped 12.6% to $360M. Catastrophe losses totaled $111M from events like California wildfires. Book value per share rose 7.1%; earnings date set between July 21-25, 2025.

As of April 21, W.R. Berkley Corporation (NYSE: $WRB) closed at $67.33, down 2.14% for the day. The company released its Q1 2025 financials, reporting strong growth in core metrics despite industry challenges. Net income came in at $418 million, or $1.04 per share, with operating earnings of $405 million or $1.01 per share. Annualized return on equity stood at a robust 19.9%.

 

W.R. Berkley Corporation (NYSE: $WRB)

The earnings date for the next quarter is scheduled between July 21 and July 25, 2025.

Premium Growth and Underwriting Results

WRB recorded over $3.1 billion in net premiums written, a record high. The insurance segment rose by 10.2% to $2.7 billion, while the Reinsurance & Monoline Excess segment climbed 8.2% to $439 million.

Net premiums earned totaled $3 billion, matching analyst expectations and showing a 9% year-over-year increase. Net premiums earned for the insurance segment reached $2.64 billion, and for the reinsurance arm, $369.87 million.

The calendar year combined ratio was 90.9%, and the current accident year combined ratio, excluding catastrophe losses, came in at 87.2%. Loss ratio for the insurance segment was higher than anticipated at 63.9%, and total loss ratio was 63.1%.

Catastrophe Losses and Market Headwinds

WRB faced $111 million in catastrophe losses, largely due to California wildfires, contributing 3.7 points to the loss ratio. Competitive pressure in the professional liability and cyber insurance markets also weighed on growth.

Foreign currency headwinds resulted in a $19 million loss, linked to the weakening U.S. dollar. The firm is also monitoring tariff impacts on future pricing and claims.

Investment and Balance Sheet Strength

Net investment income grew by 12.6% year-over-year to $360 million, supported by higher rates and strong asset performance. Net investment gains on realized sales reached $15.71 million, up 36.6%. Total net invested assets were reported at $30.7 billion.

The firm’s balance sheet remains healthy with more than $1.9 billion in cash and equivalents and stockholders’ equity rising by over $500 million to $8.9 billion.

Book value per share grew 7.1% over the quarter, and operating cash flow came in at $744 million. The company’s financial leverage remains modest at 24.2%, and its credit quality is rated AA- with a stable outlook.

Conclusion

Despite rising catastrophe losses and increased competition in key segments, WRB delivered strong Q1 results that exceeded revenue expectations and held steady on EPS. Solid underwriting, premium growth, and investment gains reinforced its financial position, signaling resilience and strong capital management going into the second quarter of 2025.

 

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