W. R. Berkley Corporation Reports Fourth Quarter and Full Year 2025 Results
GREENWICH, Conn.--( BUSINESS WIRE)--W. R. Berkley Corporation (NYSE: WRB) today reported its fourth quarter and full year 2025 results.
Summary Financial Data
(Amounts in thousands, except per share data)
Fourth Quarter
Twelve Months
2025
2024
2025
2024
Gross premiums written
$
3,607,105
$
3,497,284
$
15,105,069
$
14,211,090
Net premiums written
2,999,655
2,936,750
12,711,327
11,972,096
Net income to common stockholders
449,511
576,101
1,779,403
1,756,115
Net income per diluted share
1.13
1.44
4.45
4.36
Operating income (1)
449,574
410,437
1,729,408
1,626,497
Operating income per diluted share (1)
1.13
1.02
4.33
4.03
Return on equity (2)
21.4
%
30.9
%
21.2
%
23.6
%
Operating return on equity (1) (2)
21.4
%
22.0
%
20.6
%
21.8
%
(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 the second quarter of 2025, 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.
Fourth quarter highlights included:
Full year highlights included:
Management commented:
The fourth quarter marked another period of strong results, with a 21.4% return on beginning‑of‑year stockholders’ equity that culminated in a 21.2% return for the full year. The Company's performance reflected record underwriting income and net income for the fifth consecutive year, and record investment income for the fourth. Book value per share rose 5.2% in the quarter and 26.7% for the year, before returning $608 million and $971 million to stockholders, respectively, through dividends and share repurchases.
Full‑year net premiums written increased to a record $12.7 billion. Our focus on profitable growth by maintaining rate adequacy and underwriting discipline resulted in strong combined ratios of 89.4% for the quarter and 90.7% for the year. We expect that the margins available to us will continue to be excellent, with select areas of opportunity persisting in 2026.
Fixed‑maturity investment income grew 13.3% in the quarter. Investment income is positioned for continued growth with new-money rates above book yield and robust operating cash flows.
In the current environment, effective capital management is an important part of our responsibility. In 2025, we repurchased over four million shares, including 2.9 million in the fourth quarter, and paid the largest special dividends in our history. Our priority remains long-term value creation, and we will continue to return excess capital to shareholders in a disciplined and thoughtful manner as strong earnings rapidly generate additional excess capital.
Our focus on long-term risk-adjusted return continues to drive superior performance across market cycles. We remain confident in our ability to exceed our 15% after‑tax return on beginning equity.
Webcast Conference Call
The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on January 26, 2026, 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. Forward-looking statements are generally, although not always, identified by words such as "may," "should," "expects," "provides," "anticipates," "assumes," "can," "will," "meets," "could," "likely," "intends," "might," "predicts," "seeks," "would," "believes," "estimates," "plans," "continues," or similar expressions. 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 2026 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)
Fourth Quarter
Twelve Months
2025
2024
2025
2024
Revenues:
Net premiums written
$
2,999,655
$
2,936,750
$
12,711,327
$
11,972,096
Change in net unearned premiums
180,335
74,151
(264,389
)
(423,611
)
Net premiums earned
3,179,990
3,010,901
12,446,938
11,548,485
Net investment income
338,234
317,438
1,429,067
1,333,161
Net investment gains:
Net realized and unrealized gains on investments
5,625
151,903
130,670
79,738
Change in allowance for credit losses on investments
306
6,623
1,550
37,970
Net investment gains
5,931
158,526
132,220
117,708
Revenues from non-insurance businesses
169,337
152,706
577,420
528,012
Insurance service fees
25,901
27,352
118,511
108,935
Other income
2,020
645
3,700
2,451
Total Revenues
3,721,413
3,667,568
14,707,856
13,638,752
Expenses:
Loss and loss expenses
1,946,584
1,861,261
7,771,657
7,131,595
Other operating costs and expenses
1,012,284
897,416
3,976,834
3,602,306
Expenses from non-insurance businesses
158,954
148,839
551,930
513,451
Interest expense
31,627
31,751
126,892
126,907
Total expenses
3,149,449
2,939,267
12,427,313
11,374,259
Income before income tax
571,964
728,301
2,280,543
2,264,493
Income tax expense
(117,213
)
(152,958
)
(495,764
)
(509,916
)
Net Income before noncontrolling interests
454,751
575,343
1,784,779
1,754,577
Noncontrolling interest
(5,240
)
758
(5,376
)
1,538
Net income to common stockholders
$
449,511
$
576,101
$
1,779,403
$
1,756,115
Net income per share:
Basic
$
1.13
$
1.45
$
4.48
$
4.39
Diluted
$
1.13
$
1.44
$
4.45
$
4.36
Average shares outstanding (1):
Basic
396,707
398,042
396,968
399,734
Diluted
399,135
400,888
399,861
403,224
(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)
Fourth Quarter
Twelve Months
2025
2024
2025
2024
Insurance:
Gross premiums written
$
3,248,634
$
3,161,104
$
13,465,496
$
12,662,132
Net premiums written
2,665,812
2,620,112
11,183,713
10,549,550
Net premiums earned
2,791,728
2,638,481
10,936,028
10,086,308
Pre-tax income
530,530
504,460
2,027,244
1,942,083
Loss ratio
62.5
%
62.2
%
63.5
%
62.8
%
Expense ratio
28.1
%
28.3
%
28.2
%
28.4
%
GAAP Combined ratio
90.6
%
90.5
%
91.7
%
91.2
%
Reinsurance & Monoline Excess:
Gross premiums written
$
358,471
$
336,180
$
1,639,573
$
1,548,958
Net premiums written
333,843
316,638
1,527,614
1,422,546
Net premiums earned
388,262
372,420
1,510,910
1,462,177
Pre-tax income
125,852
109,296
517,538
466,595
Loss ratio
51.9
%
58.9
%
54.6
%
54.7
%
Expense ratio
29.1
%
29.5
%
29.1
%
29.4
%
GAAP Combined ratio
81.0
%
88.4
%
83.7
%
84.1
%
Corporate and Eliminations:
Net investment gains
$
5,931
$
158,526
$
132,220
$
117,708
Interest expense
(31,627
)
(31,751
)
(126,892
)
(126,907
)
Other expenses
(58,722
)
(12,230
)
(269,567
)
(134,986
)
Pre-tax (loss) income
(84,418
)
114,545
(264,239
)
(144,185
)
Consolidated:
Gross premiums written
$
3,607,105
$
3,497,284
$
15,105,069
$
14,211,090
Net premiums written
2,999,655
2,936,750
12,711,327
11,972,096
Net premiums earned
3,179,990
3,010,901
12,446,938
11,548,485
Pre-tax income
571,964
728,301
2,280,543
2,264,493
Loss ratio
61.2
%
61.8
%
62.4
%
61.8
%
Expense ratio
28.2
%
28.4
%
28.3
%
28.5
%
GAAP Combined ratio
89.4
%
90.2
%
90.7
%
90.3
%
(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)
Fourth Quarter
Twelve Months
2025
2024
2025
2024
Net premiums written:
Other liability
$
1,081,738
$
1,063,789
$
4,501,540
$
4,277,085
Short-tail lines (1)
612,648
581,260
2,582,155
2,349,615
Auto
399,979
384,279
1,654,767
1,554,299
Workers' compensation
271,394
304,431
1,283,073
1,243,674
Professional liability
300,053
286,353
1,162,178
1,124,877
Total Insurance
2,665,812
2,620,112
11,183,713
10,549,550
Casualty (2)
171,640
170,720
740,052
738,242
Property (2)
117,665
105,735
485,420
412,661
Monoline excess
44,538
40,183
302,142
271,643
Total Reinsurance & Monoline Excess
333,843
316,638
1,527,614
1,422,546
Total
$
2,999,655
$
2,936,750
$
12,711,327
$
11,972,096
Current accident year losses from catastrophes:
Insurance
$
42,218
$
35,645
$
260,290
$
226,576
Reinsurance & Monoline Excess
5,353
43,973
76,139
71,046
Total
$
47,571
$
79,618
$
336,429
$
297,622
Net Investment income:
Core portfolio (3)
$
352,267
$
312,785
$
1,327,078
$
1,275,079
Investment funds
(32,131
)
(12,358
)
27,582
(11,491
)
Arbitrage trading account
18,098
17,011
74,407
69,573
Total
$
338,234
$
317,438
$
1,429,067
$
1,333,161
Net realized and unrealized gains on investments:
Net realized gains (losses) on investments
$
2,455
$
(11,339
)
$
34,333
$
(41,061
)
Change in unrealized gains on equity securities
3,170
163,242
96,337
120,799
Total
$
5,625
$
151,903
$
130,670
$
79,738
Other operating costs and expenses:
Policy acquisition and insurance operating expenses
$
895,867
$
855,997
$
3,516,524
$
3,294,902
Insurance service expenses
24,129
24,331
94,374
90,640
Net foreign currency losses (gains)
5,241
(53,699
)
68,006
(52,376
)
Other costs and expenses
87,047
70,787
297,930
269,140
Total
$
1,012,284
$
897,416
$
3,976,834
$
3,602,306
Cash flow from operations
$
995,132
$
810,033
$
3,582,616
$
3,678,368
Reconciliation of net income to operating income:
Net income
$
449,511
$
576,101
$
1,779,403
$
1,756,115
Pre-tax investment gains, net of related expenses
(5,231
)
(158,526
)
(131,890
)
(117,708
)
Pre-tax net foreign currency losses (gains)
5,241
(53,699
)
68,006
(52,376
)
Income tax expense
53
46,561
13,889
40,466
Operating income after-tax (4)
$
449,574
$
410,437
$
1,729,408
$
1,626,497
(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 the second quarter of 2025, 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)
December 31,
2025
December 31,
2024
Net invested assets (1)
$
33,173,381
$
29,780,638
Total assets
44,071,071
40,567,268
Reserves for losses and loss expenses
22,207,773
20,368,030
Senior notes and other debt
1,829,198
1,831,158
Subordinated debentures
1,010,527
1,009,808
Common stockholders' equity (2)
9,700,818
8,395,111
Common stock outstanding (3)
377,156
380,066
Book value per share (4)
25.72
22.09
Tangible book value per share (4)
25.11
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, net of related liabilities.
(2)
As of December 31, 2025, reflected in common stockholders' equity are after-tax unrealized investment losses of $125 million and unrealized currency translation losses of $326 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 year ended December 31, 2025, the Company repurchased 4,069,026 shares of its common stock for $270.2 million. During the three months ended December 31, 2025, the Company repurchased 2,869,026 shares of its common stock for $196.4 million. 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
December 31, 2025
(Amounts in thousands, except percentages)
Carrying Value
Percent of Total
Fixed maturity securities:
United States government and government agencies
$
3,998,038
12.0
%
State and municipal:
Special revenue
1,184,446
3.6
%
State general obligation
231,928
0.7
%
Local general obligation
216,429
0.7
%
Corporate backed
158,375
0.5
%
Pre-refunded
74,784
0.2
%
Total state and municipal
1,865,962
5.7
%
Mortgage-backed securities:
Agency
4,332,523
13.1
%
Commercial
285,170
0.9
%
Residential - Prime
191,201
0.5
%
Residential - Alt A
1,422
0.0
%
Total mortgage-backed securities
4,810,316
14.5
%
Asset-backed securities
3,810,346
11.5
%
Corporate:
Industrial
3,648,534
11.0
%
Financial
3,483,068
10.5
%
Utilities
1,314,221
3.9
%
Other
241,588
0.7
%
Total corporate
8,687,411
26.1
%
Foreign government
1,875,589
5.6
%
Total fixed maturity securities (1)
25,047,662
75.4
%
Equity securities available for sale:
Common stocks
742,113
2.2
%
Preferred stocks
616,088
1.9
%
Total equity securities available for sale
1,358,201
4.1
%
Cash and cash equivalents (2)
2,485,952
7.5
%
Investment funds
1,361,802
4.1
%
Real estate
1,279,748
3.9
%
Arbitrage trading account
1,221,103
3.7
%
Loans receivable
418,913
1.3
%
Net invested assets
$
33,173,381
100.0
%
(1)
Total fixed maturity securities had an average rating of AA- and an average duration of 3.0 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.