W. R. Berkley 5.70% Sb Db 2058 Stock Earnings Reports

W.R. Berkley reported an excellent Q3 2025: net income of $511 million ($1.28/share) and operating income of $440 million ($1.10/share). Return on beginning-of-year equity was strong (24.3% GAAP; 21% operating). Underwriting results improved: pretax underwriting income rose 8.2% to $287 million, calendar-year combined ratio was 90.9% and current accident-year combined ratio ex-cat was 88.4%. Net premiums earned/written set records (NPE > $3.2 billion; gross NPW $3.8B, net $3.2B) with net premium growth across lines. The expense ratio benefited from scale and technology (quarterly expense ratio ~28.5%). Investment income grew meaningfully (pretax quarterly net investment income $351 million; core portfolio up ~9.4% Q/Q; domestic book yield ~4.6% and new-money ~5%), with portfolio duration ~2.9 years and high credit quality (AA-). Capital metrics are robust: shareholders' equity $9.8 billion (up 16.7% YTD), after-tax unrealized losses down to $177 million, financial leverage ~22.5% (historic low), strong operating cash flow (~$2.6 billion YTD), and ongoing capital return (ordinary + special dividends and share repurchases of $362 million YTD). Management stressed disciplined underwriting and rate adequacy — willing to shrink business rather than give up margins — while remaining opportunistic to deploy capital selectively. Market commentary: reinsurance/property cat pricing has softened (bloom off the rose), E&S property is under pressure, liability markets are mixed (D&O erosion slowing; HPL strong), commercial auto and umbrella lines are choppy and a focus due to social-inflation exposure. Strategic highlights: Berkley One (personal/homeowners/private client) is performing well (~>$0.5B), specialty workers’ comp growth (not Main Street comp), and the company emphasizes smaller, specialty-focused accounts (85–90% of policies with limits ≤ $2.5M). Management expects continued runway in investment income and ample capital flexibility (dividends, buybacks), but cautions on cyclicality and potential further pressure at upcoming renewals (notably 1/1 reinsurance renewals).