Net Premiums Written Increased to a Record $3.4 Billion; Return on Equity of 19.1% and Operating Return on Equity of 20.0%

W. R. Berkley Corporation (NYSE:WRB) today reported its second quarter 2025 results.

Summary Financial Data (Amounts in thousands, except per share data)

	Second Quarter						Six Months
		2025			2024			2025			2024

Gross premiums written	$	3,977,769		$	3,717,772		$	7,661,708		$	7,080,528
Net premiums written		3,351,439			3,126,779			6,484,742			5,978,070

Net income to common stockholders		401,288			371,909			818,860			814,380
Net income per diluted share		1.00			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.

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.

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.

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.

Consolidated Financial Summary (Amounts in thousands, except per share data)

	Second Quarter						Six Months
		2025			2024			2025			2024
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 earned		3,098,185			2,846,415			6,110,566			5,610,762
Net investment income		379,303			372,129			739,595			691,967
Net investment gains (losses):
Net realized and unrealized gains (losses) on investments		30,533			(60,306	)		46,244			(48,803	)
Change in allowance for credit losses on investments		440			1,794			1,084			16,070
Net investment gains (losses)		30,973			(58,512	)		47,328			(32,733	)
Revenues from non-insurance businesses		128,839			125,705			257,748			246,696
Insurance service fees		32,757			27,597			61,686			52,917
Other income		751			698			1,284			1,196
Total Revenues		3,670,808			3,314,032			7,218,207			6,570,805
Expenses:
Loss and loss expenses		1,955,424			1,780,596			3,856,216			3,444,374
Other operating costs and expenses		1,039,307			892,935			1,989,217			1,761,524
Expenses from non-insurance businesses		122,437			121,120			248,801			239,727
Interest expense		31,777			31,708			63,504			63,436
Total expenses		3,148,945			2,826,359			6,157,738			5,509,061
Income before income tax		521,863			487,673			1,060,469			1,061,744
Income tax expense		(121,155	)		(115,788	)		(242,411	)		(247,824	)
Net Income before noncontrolling interests		400,708			371,885			818,058			813,920
Noncontrolling interest		580			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):
Basic		397,016			400,273			396,972			401,295
Diluted		400,368			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.

Business Segment Operating Results (Amounts in thousands, except ratios) (1)

	Second Quarter						Six Months
		2025			2024			2025			2024
Insurance:
Gross premiums written	$	3,606,887		$	3,360,850		$	6,823,840		$	6,281,900
Net premiums written		3,013,703			2,810,448			5,708,158			5,256,163
Net premiums earned		2,728,784			2,484,569			5,371,291			4,883,338
Pre-tax income		512,672			490,053			1,022,177			968,202
Loss ratio		63.8	%		64.0	%		63.9	%		62.9	%
Expense ratio		28.3	%		28.4	%		28.0	%		28.4	%
GAAP Combined ratio		92.1	%		92.4	%		91.9	%		91.3	%

Reinsurance & Monoline Excess:
Gross premiums written	$	370,882		$	356,922		$	837,868		$	798,628
Net premiums written		337,736			316,331			776,584			721,907
Net premiums earned		369,401			361,846			739,275			727,424
Pre-tax income		127,299			124,449			247,679			252,074
Loss ratio		57.7	%		52.8	%		57.7	%		51.3	%
Expense ratio		29.7	%		29.0	%		28.7	%		29.4	%
GAAP Combined ratio		87.4	%		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 written		3,351,439			3,126,779			6,484,742			5,978,070
Net premiums earned		3,098,185			2,846,415			6,110,566			5,610,762
Pre-tax income		521,863			487,673			1,060,469			1,061,744
Loss ratio		63.1	%		62.6	%		63.1	%		61.4	%
Expense ratio		28.5	%		28.5	%		28.2	%		28.6	%
GAAP Combined ratio		91.6	%		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.

Supplemental Information (Amounts in thousands)

	Second Quarter						Six Months
		2025			2024			2025			2024
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
Auto		448,678			408,178			837,832			756,760
Workers' compensation		340,891			332,432			681,498			637,064
Professional liability		298,848			295,061			555,085			539,606
Total Insurance		3,013,703			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 Excess		337,736			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 Excess		21,603			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 funds		27,268			25,476			54,291			(3,873	)
Arbitrage trading account		23,672			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 securities		63,630			(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 expenses		24,287			23,084			47,534			44,523
Net foreign currency losses (gains)		55,396			(10,118	)		74,774			(23,295	)
Other costs and expenses		77,525			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.

Selected Balance Sheet Information (Amounts in thousands, except per share data)

	June 30, 2025		December 31, 2024

Net invested assets (1)	$	31,577,384	$	29,780,638
Total assets		42,658,057		40,448,635
Reserves for losses and loss expenses		21,496,123		20,368,030
Senior notes and other debt		1,831,638		1,831,158
Subordinated debentures		1,010,168		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.

Investment Portfolio June 30, 2025 (Amounts in thousands, except percentages)

	Carrying Value		Percent of Total
Fixed maturity securities:
United States government and government agencies	$	3,101,062	9.8	%
State and municipal:
Special revenue		1,353,385	4.3	%
State general obligation		284,130	0.9	%
Local general obligation		275,378	0.9	%
Corporate backed		184,200	0.6	%
Pre-refunded		77,477	0.2	%
Total state and municipal		2,174,570	6.9	%
Mortgage-backed securities:
Agency		3,787,350	12.0	%
Commercial		359,500	1.1	%
Residential - Prime		181,086	0.6	%
Residential - Alt A		1,723	0.0	%
Total mortgage-backed securities		4,329,659	13.7	%
Asset-backed securities		3,853,435	12.2	%
Corporate:
Industrial		3,672,546	11.6	%
Financial		3,452,175	11.0	%
Utilities		1,151,418	3.6	%
Other		482,637	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 stocks		719,570	2.3	%
Preferred stocks		542,622	1.7	%
Total equity securities available for sale		1,262,192	4.0	%
Cash and cash equivalents (2)		2,076,351	6.6	%
Investment funds		1,492,258	4.7	%
Real estate		1,294,505	4.1	%
Arbitrage trading account		1,034,557	3.3	%
Loans receivable		324,365	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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250721413001/en/

Karen A. Horvath

Vice President - External

Financial Communications

(203) 629-3000

W. R. Berkley Corporation Reports Second Quarter 2025 Results