W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writers worldwide. It operates in two segments, Insurance and Reinsurance & Monoline Excess. The Insurance segment underwrites commercial insurance business, including excess and surplus lines, admitted lines, and specialty personal lines. This segment also provides accident and health insurance and reinsurance products; insurance for commercial risks; casualty and specialty environmental products; specialized insurance coverages for fine arts and jewelry exposures; excess liability and inland marine coverage for small to medium-sized insureds; and commercial general liability, umbrella, professional liability, directors and officers, commercial property, and surety products, as well as products for technology, and life sciences and travel industries. In addition, this segment offers cyber risk solutions; crime and fidelity insurance products; medical professional coverages; workers' compensation insurance products; general insurance; personal lines insurance solutions, including home, condo/co-op, auto, and collectibles; automobile, law enforcement, public officials and educator's legal, and employment practices liability, as well as incidental medical and property and crime insurance products; at-risk and alternative risk insurance program management services; professional liability; energy and marine risks; and provides insurance products to the Lloyd's marketplace. The Reinsurance & Monoline Excess segment provides treaty and facultative reinsurance solutions; property and casualty reinsurance; facultative reinsurance products include automatic, semi-automatic and individual risk assumed reinsurance; and turnkey products such as cyber, employment practices liability insurance, liquor liability insurance and violent events. The company was founded in 1967 and is headquartered in Greenwich, Connecticut.

W.R. Berkley’s strong profitability is paired with a notable valuation premium, and that is precisely what makes the outlook more cautious. The company trades at a P/E of 14.16, which is above the industry median, while its P/B of 2.55 looks especially expensive—more than twice the industry level—so the market is already pricing in a high-quality business. At the same time, P/S and P/FCF are below the median, which partially softens the picture and suggests that, on revenue and cash flow, the valuation does not look extreme. Capital quality and returns on capital are indeed strong: ROE of 19.72%, ROA of 4.34%, ROI of 15.28%, and return on tangible equity of 20.10% are significantly above the industry, which supports a premium multiple. However, profitability margins are weaker than the industry’s: net margin, operating margin, and gross margin are below median levels, which limits the potential for further valuation expansion. Year-over-year trends are generally stable, but not accelerating: revenue, earnings, and assets are growing moderately, without a sharp improvement in growth rates. Leverage looks comfortable on a debt/equity basis, but current and quick ratios are very weak, which for an insurance business requires attention to the structure of current assets and liabilities. Dividend yield is low and is not the main driver of the investment case, so it does little to support a rerating. Overall, the balance sheet is stable: equity and assets are growing, debt is barely changing, and the cash position looks acceptable. But the combination of a high price-to-book ratio, weak liquidity, and margins below the industry does not allow for an aggressive increase in the target valuation. As a result, the fundamentals support a moderately cautious view: the business is high-quality and profitable, but the current market valuation already reflects a significant portion of these strengths.

W.R. Berkley Corporation

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

The business quality and return on capital are high, but the premium to book value and weak liquidity limit rerating potential.

W.R. Berkley (WRB) reported $3.76 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 1.8%. EPS of $1.17 for the same period compares to $1.10 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.8 billion, representing a surprise of -1.19%. The company delivered an EPS surprise of +2.63%, with the consensus EPS estimate being $1.14.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how W.R. Berkley performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Loss ratio - Total: 62.2% compared to the 63.3% average estimate based on three analysts.
Expense Ratio - Total: 28.6% versus 28.7% estimated by three analysts on average.
Combined Ratio - Total: 90.8% compared to the 92.1% average estimate based on three analysts.
Loss ratio - Reinsurance & Monoline Excess: 53.2% versus 58.6% estimated by two analysts on average.
Expense ratio - Reinsurance & Monoline Excess: 30.2% versus the two-analyst average estimate of 30.2%.
Revenues from non-insurance businesses: $130.82 million versus $156.77 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -13% change.
Insurance service fees: $28.62 million versus $32.2 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -7.5% change.
Net premiums earned: $3.21 billion versus the three-analyst average estimate of $3.21 billion. The reported number represents a year-over-year change of +1.8%.
Net investment income: $383.54 million versus $400.02 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +9.2% change.
Net premiums earned- Reinsurance & Monoline Excess: $351.72 million versus the two-analyst average estimate of $365.38 million. The reported number represents a year-over-year change of -8.3%.
Other income (loss): $0.54 million versus the two-analyst average estimate of $0.84 million. The reported number represents a year-over-year change of +35%.
Net premiums earned- Insurance: $2.86 billion versus the two-analyst average estimate of $2.84 billion. The reported number represents a year-over-year change of +3.2%.
Shares of W.R. Berkley have returned +7.8% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
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 (WRB) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Shares of Arch Capital Group Ltd. ACGL have lost 2.6% in the past three months, underperforming its industry’s appreciation of 0.3%.
The decline was due to investor concerns over softer property pricing, weaker premium growth, reinsurance competition and higher catastrophe exposure, raising concerns about future underwriting margins and earnings growth.
Shares of some other players like The Progressive Corporation PGR and W.R. Berkley Corporation WRB have lost 9.9% and 5.6%, respectively, while NMI Holdings Inc. NMIH has gained 2.3% in the past three months.
3-Month Price Performance: ACGL, WRB, PGR, NMIH & Industry
Image Source: Zacks Investment Research
ACGL's Average Target Price Suggests Upside
Based on short-term price targets offered by 20 analysts, the Zacks average price target is $111.33 per share. The average suggests a potential 17% upside from the last closing price.
ACGL’s Valuation
Based on the trailing 12-month price-to-book ratio, Arch Capital is currently trading at 1.40X, below its industry average of 1.42X. The insurer has a Value Score of B.
Image Source: Zacks Investment Research
Return on Equity of ACGL
Arch Capital’s trailing 12-month return on equity is 17.1%, ahead of the industry average of 7.5%, reflecting how effectively a company is utilizing its shareholders’ equity.
Key Points to Note for ACGL Stock
Arch Capital delivered strong underwriting results across its Insurance, Reinsurance and Mortgage segments, reporting an overall accident-year combined ratio, excluding catastrophes, of 82.5% in the second quarter of 2026. Management remains constructive on casualty insurance and selected casualty reinsurance opportunities, supported by firm North American casualty pricing. Casualty-focused insurance lines, including excess and surplus casualty, construction and national accounts, continued to achieve rate increases, supporting underwriting profitability and growth prospects.
ACGL’s investment income remains a key earnings driver, supported by a growing fixed-income portfolio and higher returns from non-fixed-income assets. As of June 30, 2026, investable assets increased to $49.5 billion from $47.4 billion at 2025-end, while pre-tax net investment income rose to $417 million in the second quarter from $405 million a year earlier. Continued cash generation and reinvestment should support investment income, earnings and book value growth.
Arch Capital is increasingly using third-party capital as part of its broader risk-management strategy. In the second quarter of 2026, reinsurance business generated $410 million of underwriting income, with a 77.5% combined ratio. Profitable underwriting gives Arch Capital greater flexibility to deploy third-party capacity without relying solely on its own balance sheet. As alternative capital expands, Arch Capital's ability to combine its underwriting expertise with third-party capacity could help it manage capital more efficiently while maintaining attractive returns.
Arch Capital continues to strengthen its competitive position through strategic acquisitions and targeted investments. The MidCorp and Entertainment acquisitions expand its U.S. middle-market presence, while investments in local teams support growth opportunities. Its European expansion through Arch Insurance Company (Europe) Limited further enhances diversification and market reach.
Arch Capital’s strong capital generation supports shareholder returns as underwriting opportunities soften. Book value per share rose 2.8% to $68.04, while net cash provided by operating activities increased 17.6% year over year to $1.32 billion in the second quarter of 2026. The company repurchased $1.2 billion of shares in the second quarter, taking the first-half tally to $1.92 billion. Management views buybacks as an accretive use of excess capital at current prices, supporting value creation through the softening cycle.
ACGL Growth Projection
The Zacks Consensus Estimate for Arch Capital’s 2026 earnings per share (EPS) indicates a year-over-year decrease of 4.1%. The consensus estimate for revenues is pegged at $17.70 billion, implying a year-over-year decrease of 5.8%. The Zacks Consensus Estimate for Arch Capital’s 2027 EPS and revenues indicates a year-over-year increase of 3.9% and 0.2%, respectively, from the corresponding 2026 estimates.
ACGL’s earnings grew 30% in the last five years, better than the industry average of 22.7 %.
Muted Analyst Sentiment for ACGL
The Zacks Consensus Estimate for 2026 and 2027 earnings estimates remain unchanged over the past 30 days.
Risks for ACGL
Arch Capital faces a softer property market and rising competition in reinsurance as more companies enter the market. Lower property pricing, client retention, non-renewals and reduced writings led to a 10.4% decline in reinsurance net premiums written and a 6.9% drop in consolidated net premiums written in the second quarter of 2026. Further rate pressure and competition could limit premium growth and reduce returns.
ACGL remains exposed to catastrophe and geopolitical risks. Second-quarter 2026 catastrophe losses of $201 million pushed the combined ratio to 98.5% and reduced underwriting income to $27 million. Further major events could pressure earnings and book value growth.
End Notes
Arch Capital benefits from strong underwriting, higher investment income, growing third-party capital, strategic acquisitions and solid capital. However, softer property pricing, increased competition and catastrophe risks remain headwinds.
Coupled with the cheap valuation, diversified earnings and favorable return on equity, it is wise to retain this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This innovative software-as-a-service firm upped its user base +22% year over year. That rate is increasing and margins are expanding as AI efficiencies take effect. Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
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

Arch Capital Lags Industry, Trades at a Discount: Time to Hold or Exit?

RLI Corp. RLI shares have risen 6.2% over the past three months, outperforming the industry's 1.4% growth. The Finance sector and the Zacks S&P 500 index have returned 3% and 5.2%, respectively, in the same time frame.
RLI has outperformed its peers, including Arch Capital Group Ltd. ACGL, W.R. Berkley Corporation WRB and Cincinnati Financial Corporation CINF. Shares of ACGL have gained 0.01%, while WRB and CINF shares have lost 2.7% and 7.1%, respectively, over the past three months.
With a market capitalization of $5.34 billion, the average trading volume over the last three months was 0.8 million shares.
RLI’s Growth Projection Encourages
The Zacks Consensus Estimate for RLI’s 2026 revenues is pegged at $1.86 billion, implying a year-over-year improvement of 4.8%.
The consensus estimate for 2027 revenues indicates an increase of 1.5% from the corresponding 2026 estimates.
RLI surpassed earnings estimates in three of the last four quarters and missed in one, delivering an average surprise of 18.03%.
RLI’s Favorable Return on Capital
RLI’s return on equity (ROE) has also been improving over the last few quarters, reflecting its efficiency in utilizing shareholders’ funds. The trailing 12-month ROE was 17.6%, which compared favorably with the industry average of 7.5%.
Average Target Price for RLI Suggests Upside
Based on short-term price targets offered by five analysts, the Zacks average price target is $63.80 per share. The average suggests a potential 9.75% upside from the last closing price.
Factors Acting in Favor of RLI
RLI continues to benefit from disciplined underwriting, rising investment income, strong capital and shareholder-friendly capital allocation. These strengths should help the specialty property and casualty insurer navigate moderating market pricing while preserving profitability.
RLI delivered its 30th consecutive year of underwriting profit in 2025. In the second quarter of 2026, the company generated $59.9 million of underwriting income, with an 85.6 combined ratio. Results benefited from $35.1 million of favorable prior-year reserve development.
Casualty growth remains focused on personal umbrella and transportation, where RLI is combining rate increases with targeted geographic and account selection. Property and surety also remained profitable despite softer market conditions. Its decentralized underwriting model, specialized expertise, reinsurance protection and willingness to exit inadequately priced business should help sustain underwriting margins through market cycles.
Investment income remains an important earnings contributor. Net investment income rose 16% year over year to $88.4 million in the first half of 2026. Fixed-income purchase yields averaged 4.9%, approximately 60 basis points above the current book yield, supporting further improvement as securities mature and are reinvested. A growing asset base and favorable reinvestment yields should support investment income if rates remain elevated.
RLI’s investments in underwriting systems, automation and digital capabilities complement its experienced underwriting teams. Transportation loss-control services using telematics, driver training and equipment data further strengthen risk selection and producer relationships.
RLI has increased its regular dividend for 51 consecutive years and paid dividends for 200 consecutive quarters. It paid a $2 special dividend in June 2026 and authorized a $250 million share repurchase program. More than $1.3 billion has been returned through dividends and buybacks over the past five years.
End Notes
RLI’s disciplined underwriting, improving investment income, strong capitalization and consistent capital returns provide a solid foundation for durable profitability as P&C market conditions evolve.
Its solid growth projections, higher target price and favorable return on capital should continue to benefit RLI over the long term. It is, therefore, wise to hold on to this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
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
This article originally published on Zacks Investment Research (zacks.com).

RLI Rises 6.2% in 3 Months: Time to Hold or Fold the Stock?

Looking at the universe of stocks we cover at Dividend Channel, on 9/21/26, Berkley Corp (Symbol: WRB) will trade ex-dividend, for its quarterly dividend of $0.10, payable on 9/30/26. As a percentage of WRB's recent stock price of $69.29, this dividend works out to approximately 0.14%.
In general, dividends are not always predictable; but looking at the history above can help in judging whether the most recent dividend from WRB is likely to continue, and whether the current estimated yield of 0.58% on annualized basis is a reasonable expectation of annual yield going forward. The chart below shows the one year performance of WRB shares, versus its 200 day moving average:
Looking at the chart above, WRB's low point in its 52 week range is $62.8725 per share, with $78.96 as the 52 week high point — that compares with a last trade of $69.41.
According to the ETF Finder at ETF Channel, WRB makes up 6.56% of the AGF U.S. Market Neutral Anti-Beta Fund ETF (Symbol: BTAL) which is trading lower by about 1% on the day Friday. (see other ETFs holding WRB).
According to Preferred Stock Channel, there are 5 series of preferred stock that are senior to WRB — find out what they are ».
In Friday trading, Berkley Corp shares are currently down about 1.2% on the day.
Click here to learn which S.A.F.E. dividend stocks also have preferred shares that should be on your radar screen »
Further WRB Research:

Berkley About To Put More Money In Your Pocket (WRB)

Key Points
American Express is a major Berkshire holding, although the stock has recently underperformed.
Chubb's strong underwriting and book value gains keep it well-positioned to continue climbing.
Moody's has a significant economic moat and strong growth track record.
Warren Buffett retired as chief executive officer of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) at the end of 2025, but he still remains chairman of the holding company. Moreover, since taking over as CEO at the start of 2026, Greg Abel has largely kept Berkshire's investing strategy the same as his predecessor.
Although Abel jettisoned positions in financial stocks such as Mastercard and Visa, Berkshire continues to hold large stakes in numerous other financial services companies. In fact, there may be as much opportunity, if not more, with some of these companies today as there is with Berkshire itself.
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Three Berkshire holdings worth mentioning are American Express (NYSE: AXP), Chubb (NYSE: CB), and Moody's (NYSE: MCO).
1. American Express benefits from robust spending by affluent customers
American Express was one of the early Buffett investments. Back in 1964, Buffett's investment funds made a big contrarian wager on the company following its involvement in the "Salad Oil Scandal." However, it wasn't until the 1990s that the stock, commonly known as Amex, became part of the Berkshire stock portfolio.
Berkshire has held on to it since then, with its 22.5% stake in the payments and financial services company accounting for about 13.5% of the overall portfolio. In recent years, the shares have performed well, doubling in price since 2021, but the mixed recent performance may have many investors thinking twice about buying right now.
However, this recent turbulence may work in your favor if you have a long investing time horizon. Even as the company, which profits from both its closed-loop payments network and fee revenue on its famed payment cards, continues to benefit from robust spending by high-income households, investors reacted negatively to Amex's latest quarterly earnings release in July. While earnings of $4.53 per share came in ahead of forecasts, a slight shift in revenue mix and lukewarm outlook led to post-earnings weakness.
Considering some green shoots, such as CEO Stephen Squeri's post-earnings commentary regarding successful membership growth among young and affluent spenders, the market's recent reaction could prove overblown in hindsight. While not necessarily "cheap" at about 16 times forward earnings, the shares could rise in tandem with improved results. In the recent past, the stock, thanks to its affluent, spending-driven growth, has traded at well above 20 times earnings.
2. Chubb keeps climbing on underwriting gains
Compared to American Express, Chubb is a more recent Berkshire holding, with the position first disclosed in 2024. Then again, Berkshire is hardly a stranger to the industry. Since Buffett took control of Berkshire in the 1960s, this former textile company has made numerous investments in insurance stocks. It's acquired so many insurance companies outright that many classify it as an insurance company rather than as a conglomerate or holding company.
It's unclear whether Berkshire ultimately plans to buy this property and casualty (P&C) insurer outright. For the time being, however, it owns 8.9% of Chubb's shares outstanding. The position represents about 3.2% of Berkshire's stock portfolio. So, what's the big potential opportunity with Chubb shares? Over the past year, the stock has surged by nearly 25%.
Berkshire bought in because of Chubb's economic moat in specialty insurance and its higher-than-average underwriting margins. Based on the latest financial results, the bull case for Chubb still stands. During Q2 2026, Chubb reported 18.2% growth in core operating income year over year, with book value and tangible book value increasing by 12.3% and 17.1%, respectively, year over year.
Chubb currently trades for less than 12 times forward earnings. As other P&C insurers well-respected for underwriting strength, like WR Berkley and Markel Group, trade at even higher forward multiples, don't rule out the potential for Chubb to catch up.
3. A deep moat remains for Moody's
Moody's is one of just a handful of Wall Street credit raters. Due to this oligopoly, companies like this one have a deep economic moat because corporations and governments issuing debt must obtain credit ratings for institutional investors to buy the securities.
It's not surprising that Moody's became a major Berkshire holding back in the early 2000s. Currently, Berkshire owns a 14.2% stake in Moody's, an $11.5 billion position that accounts for 3.2% of its overall stock portfolio. If you're looking at Moody's shares for the first time today, they may seem a bit pricey. This financial services stock trades for about 24 times forward earnings.
Yet while that represents a premium to other credit rating stocks, like S&P Global, which trades for only 20 times forward earnings, keep in mind that S&P Global is far more diversified, with lower-margin, weaker-moat segments like Market Intelligence, where it competes with multiple financial data providers.
For Moody's, as long as its core business keeps knocking it out of the park, with 15% annualized sales growth, operating margins nearing 50%, as well as adjusted earnings and operating cash flow growth exceeding 30%, the stock remains well positioned to sustain and increase its premium valuation.
Should you buy stock in American Express right now?
Before you buy stock in American Express, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and American Express wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $412,074!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,314,319!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 18, 2026.
American Express is an advertising partner of Motley Fool Money. Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Express, Berkshire Hathaway, Markel Group, Mastercard, Moody's, S&P Global, Visa, and W. R. Berkley. The Motley Fool has a disclosure policy.

3 Financial Stocks Berkshire Hathaway Owns That I'd Buy Before Buying Berkshire Itself

Shares of W.R. Berkley Corporation WRB are trading at a premium compared with the industry. Its trailing 12-month price-to-book value of 2.64X is higher than the industry average of 1.44X, but lower than the Finance sector’s 4.39X and the Zacks S&P 500 composite’s 8.16X. However, the insurer has a Value Score of B.
W. R. Berkley’s premium growth, international expansion, technology investments and strong capital position support diversified operations and growth. Earnings delivered a compound annual growth rate (CAGR) of 22.5% over the past five years, while WRB beat earnings estimates in three of the trailing four quarters, with an average of 8.4%.
Image Source: Zacks Investment Research
Shares of other P&C insurers, such as The Allstate Corporation ALL, RLI Corp. RLI, and The Progressive Corporation PGR, are also trading at multiples above the industry average.
WRB’s Price Performance
WRB shares have declined 4% against the industry’s growth of 4.4% in a year.
Shares of other insurers like ALL have gained 31%, while RLI and PGR have lost 8.3% and 11.4%, respectively, in a year.
1-Year Price Performance: WRB, RLI, ALL, PGR & Industry
Image Source: Zacks Investment Research
WRB’s Encouraging Growth Projection
The Zacks Consensus Estimate for W.R. Berkley’s 2026 earnings per share (EPS) indicates a year-over-year increase of 12.5%. The consensus estimate for revenues is pegged at $15.1 billion, implying a year-over-year improvement of 3.3%.
The consensus estimate for 2027 EPS indicates a decrease of 0.5%, while revenues suggest an improvement of 3.1% from the corresponding 2026 estimates.
The expected long-term earnings growth is pegged at 8.3%.
Optimistic Analyst Sentiment on WRB
The Zacks Consensus Estimate for 2026 and 2027 has moved 0.8% and 0.4% north, respectively, in the last 30 days.
Efficient Use of Shareholder Capital
Return on equity for the trailing 12 months was 19.4%, which compared favorably with the industry’s 7.5%. This reflects its efficiency in utilizing shareholders’ funds.
Factors Acting in Favor of WRB Stock
W. R. Berkley continues to benefit from disciplined underwriting and prudent risk selection. Pretax underwriting income reached $318 million in the second quarter, while the current accident-year combined ratio, excluding catastrophes, was 88.1%, reflecting healthy margins despite moderating pricing. Strong cost discipline, reflected in the second-quarter expense ratio of 28.5%, which was better than management’s expectation, should support margins and overall underwriting profitability.
Record net investment income is providing an additional earnings tailwind. In the second quarter of 2026, pre-tax net investment income reached a record $419 million, while the core portfolio income increased 13% year over year to $371 million. Record net invested assets and higher new money rates on a growing fixed maturity portfolio, along with strong operating cash flows, are driving net investment income.
W. R. Berkley continues to benefit from its diversified specialty insurance platform. Its broad portfolio spans liability, commercial, auto, professional liability and workers’ compensation, while its reinsurance business provides additional diversification. International expansion across Asia-Pacific, South America and Mexico has further strengthened its geographic reach. This strategy has supported an 8.8% CAGR in insurance premiums written from 2018 to 2025, with gross and net premiums reaching record levels in 2025.
WRB continues to see favorable growth opportunities across casualty, accident and health (A&H) and private-client personal lines. Management remains confident in its ability to deploy capital toward areas offering attractive risk-adjusted returns, while the broader casualty market continues to provide opportunities for profitable growth.
The insurer is leveraging AI across underwriting, claims, risk assessment, customer service, fraud detection and marketing. Early implementations have improved underwriting efficiency by more than 20%, supporting operating leverage. Management expects further productivity gains as AI adoption expands.
W.R. Berkley maintains a solid balance sheet with sufficient liquidity and strong cash flows. As of June 30, 2026, the company had cash and cash equivalents of nearly $2.4 billion. The company returned $334 million through dividends and share repurchases in the second quarter of 2026, while capital returned over the preceding 12 months exceeded $1.3 billion.
Risks for WRB
WRB’s expanding international operations expose it to increased political, legal, regulatory and economic risks, including foreign currency and credit risk, which could have an adverse effect on its results of operations and financial condition.
Intense competition across the insurance and reinsurance markets remains a key headwind. It can affect the profitability of existing and new businesses.
Conclusion
W. R. Berkley’s underwriting discipline, premium growth, international expansion, higher investment income, technology investments and consistent cash flow support diversified operations and long-term growth. Solid capital returns, higher ROE and optimistic analyst sentiment are other positives.
However, premium valuation, stiff competition and exposure to foreign currency and credit risk are the risks. We prefer to stay cautious on this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
Of course, all our elite picks aren't winners, but this one could far surpass earlier Zacks' Stocks Set to Double like D-Wave Quantum, which shot up +680.1%.
Free: See Our Top Stock And 4 Runners Up
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
This article originally published on Zacks Investment Research (zacks.com).

WRB's Solid Growth Comes With a Premium Valuation - Hold or Buy?

The board of directors of AbbVie declared a quarterly cash dividend of $1.73 per share. The cash dividend is payable November 16, 2026, to stockholders of record at the close of business on October 15, 2026. Since the company's inception in 2013, AbbVie has increased its dividend by more than 330 percent. AbbVie is a member of the S&P Dividend Aristocrats Index, which tracks companies that have annually increased their dividend for at least 25 consecutive years.
The Meta Platforms, board of directors today declared a quarterly cash dividend of $0.525 per share of the company's outstanding Class A common stock and Class B common stock, payable on September 28, 2026 to stockholders of record as of the close of business on September 21, 2026.
W. R. Berkley announced today that its Board of Directors has declared a regular quarterly cash dividend on its common stock of 10 cents per share to be paid on September 30, 2026 to stockholders of record at the close of business on September 21, 2026.
Granite announced that its Board of Directors has declared a quarterly cash dividend of $0.13 per common share. The dividend is payable on October 15, 2026, to all shareholders of record at the close of business on September 30, 2026.
Applied Materials announced that its Board of Directors has approved a quarterly cash dividend of $0.53 per share payable on the company's common stock. The dividend is payable on Dec. 10, 2026 to shareholders of record as of Nov. 19, 2026. The cash dividend is a key component of Applied's capital allocation strategy. In March 2026, Applied announced a 15-percent increase in the quarterly dividend per share, from $0.46 to $0.53, marking nine consecutive years of dividend increases. With that increase, Applied has grown its dividend per share at a compound annual growth rate of 18 percent over the past decade.

Daily Dividend Report: ABBV,META,WRB,GVA,AMAT

Shares of Chubb Limited CB are trading at a premium compared with the industry. Its trailing 12-month price-to-book value of 1.62X is higher than the industry average of 1.43X. However, it currently carries a Value Score of B.
The premium valuation reflects investors' confidence in Chubb's strong profitability, underwriting discipline and growth prospects. However, the higher multiple raises the question of whether the company's fundamentals are strong enough to justify the premium.
Image Source: Zacks Investment Research
Shares of some of its peers, like The Travelers Companies, Inc. TRV, W.R. Berkley Corporation WRB and The Progressive Corporation PGR, are trading at a multiple higher than the industry average.
CB’s Strong Return on Equity
Return on equity (ROE) for the trailing 12 months was 14.5%, significantly above the industry's 7.5%. Core operating return on tangible equity was 21.2% in the second quarter of 2026. Moreover, ROE has remained around 14% over the past three and five years, reflecting the company's consistent ability to generate returns from shareholders' funds.
CB Is an Outperformer
Chubb shares have gained 21.3% in the past year, outperforming the industry’s growth of 0.8%.
Shares of other insurers, including TRV, have gained 31.1%, while PGR and WRB have lost 11.1% and 6.5%, respectively, in the past year.
1-Year Price Performance: CB, TRV, WRB, PGR & Industry
Image Source: Zacks Investment Research
CB’s Growth Projection Encourages
The Zacks Consensus Estimate for Chubb’s 2026 earnings per share (EPS) indicates a year-over-year increase of 10.3%. The consensus estimate for revenues is pegged at $64.34 billion, implying a year-over-year improvement of 7.3%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 5.6% and 4.1%, respectively, from the corresponding 2026 estimates. The expected long-term earnings growth is pegged at 7.7%.
Optimist Analyst Sentiment on CB
The company has witnessed 13 upward earnings estimate revisions for 2026 over the past 60 days, against no movement in the opposite direction. For 2027, it has witnessed five upward revisions against one downward movement. Thus, the Zacks Consensus Estimate for 2026 and 2027 earnings have moved up 2.7% and 0.2%, respectively, over the same time frame.
Image Source: Zacks Investment Research
Factors That Benefit CB Stock
Chubb's underwriting operations remain a major earnings driver. The company prioritizes profitability over premium growth by exiting inadequately priced business, particularly in large-account property insurance. P&C underwriting income increased 18.8% year over year to $1.94 billion in the second quarter of 2026, while the combined ratio improved to 83.8% from 85.6% in the prior-year quarter, reflecting strong underwriting profitability.
Chubb continues to benefit from broad-based premium growth across its businesses, supported by strong performance in its middle-market and international commercial businesses. Middle-market and small commercial premiums increased 8.9% in the second quarter, while overseas commercial insurance premiums rose 8.8%.
CB pursues strategic mergers and acquisitions to diversify its portfolio, add capabilities and synergies, and expand its geographic footprint. Acquisitions, including Catalyst Aviation Insurance and Liberty Mutual's operations in Thailand and Vietnam, have strengthened its product offerings, distribution network and presence in key international markets. Continued investments in AI, digital capabilities and distribution, along with strong broker relationships, are driving new business growth and improve renewal rates.
Higher investment income, supported by the company's fixed-income and alternative asset portfolios, provides an additional source of earnings growth alongside underwriting operations. Adjusted net investment income reached a record $1.88 billion in the second quarter of 2026, up 11.4% year over year.
Chubb's strong cash generation supports shareholder returns and continued capital deployment. The company returned $1.37 billion to shareholders in the second quarter of 2026 through dividends and share repurchases, bringing total capital returned in the first six months to $2.90 billion.
Chubb continues to generate strong growth in book value. As of 30 June 2026, tangible book value per share rose 17.1% to $131.93. The continued growth in book value and tangible book value reflects the company's strong earnings generation and supports the case for its valuation.
Risks for CB
Chubb remains exposed to catastrophe losses from hurricanes, wildfires, earthquakes and other severe events, which induce volatility in underwriting profitability and affect the combined ratio. Pretax catastrophe losses totaled $475 million in the second quarter of 2026.
Softening commercial insurance pricing remains a headwind for Chubb, as continued rate declines could weigh on premium growth and profitability.
Conclusion
Chubb is positioned to deliver continued earnings and book-value growth through strong underwriting profitability, middle-market and overseas commercial expansion, higher investment income and disciplined capital management. Favorable estimates, optimistic analyst sentiment and higher ROE are other positives. A VGM Score of A instils confidence.
While the premium valuation appears justified by Chubb's profitability and growth profile, continued earnings growth and underwriting discipline will be important to sustain the higher multiple. Catastrophe losses and softer commercial pricing remain risks. It is wise to retain this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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
This article originally published on Zacks Investment Research (zacks.com).

CB Stock Trades at 1.62x Book Value: Is the Valuation Worth It?

Chubb Limited CB is benefiting from strong commercial insurance growth in its middle-market and international businesses, helping offset pressure in large-account property.
Chubb’s P&C net premiums written increased 3% year over year to $12.8 billion in the second quarter. Excluding large-account and E&S property, P&C premiums grew 6.3%, highlighting stronger underlying growth.
Within North America Commercial P&C, middle-market and small commercial business remained a key growth driver. In the second quarter of 2026, net premiums written in this business increased 8.9% year over year to $2.3 billion. Its agency reach, product breadth and technology-enabled access to smaller distributors create a structural advantage in an underpenetrated market. In contrast, net premiums written in major accounts and specialty declined 9%, primarily due to underwriting actions in property. Excluding large-account and E&S property, this business increased 0.4%
Chubb’s strategy of reducing exposure to less attractive property risks while expanding in middle-market and small commercial business could support more sustainable growth. The insurer’s diversified portfolio also provides an advantage as pricing conditions moderate across parts of the commercial market. In the second quarter of 2026, overseas commercial P&C premiums rose 8.8%.
CB’s P&C underwriting income rose 18.8%, and the combined ratio improved to 83.8% in the second quarter. Strong underwriting performance continues to support earnings.
Chubb continues to invest in middle-market and small commercial businesses through broader distribution, industry-specific underwriting, digital capabilities and localized service. Its strong middle-market and overseas commercial growth, combined with disciplined underwriting, should help it navigate softer market conditions while maintaining profitable growth.
What About Its Peers?
W.R. Berkley Corporation WRB continues to benefit from its strong presence in commercial and specialty insurance. In the second quarter of 2026, pre-tax underwriting income increased 21.8% to $317.5 million, and the reported combined ratio improved to 90%. WRB is focusing on disciplined underwriting and selective growth as competition increases across parts of the commercial market.
Travelers Companies TRV is also benefiting from continued demand across its commercial businesses, particularly in the middle-market segment. Strong new business activity and disciplined pricing are supporting growth, while its diversified commercial portfolio provides resilience as insurance pricing moderates.
Chubb s’ Price Performance
Shares of Chubb have gained 22.4% in the past year, outperforming the industry’s growth of 1.4%.
Image Source: Zacks Investment Research
CB’s Premium Valuation
Shares of CB are trading at a premium compared with the industry. Its trailing 12-month price-to-book value of 1.62X is higher than the industry average of 1.42X.
Image Source: Zacks Investment Research
CB’s Growth Projection
The Zacks Consensus Estimate for Chubb’s 2026 earnings per share (EPS) indicates a year-over-year increase of 10.3%.
The consensus estimate for revenues is pegged at $64.37 billion, implying a year-over-year improvement of 7.3%.
The consensus estimate for 2027 EPS and revenues indicates an increase of 5.6% and 4.1%, respectively, from the corresponding 2026 estimates.
The Zacks Consensus Estimate for 2026 and 2027 earnings has moved up 0.3% and 0.5%, respectively, over the past 30 days.
Image Source: Zacks Investment Research
CB stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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

Chubb's Middle-Market, Overseas Operations Boost Commercial Growth

Radian Group Inc. RDN is facing pressure from softer specialty-insurance pricing as the market shifts from a hard pricing environment toward greater competition. This is increasingly important following its acquisition of Inigo, which has significantly expanded the company's exposure to specialty insurance and reinsurance.
Radian acquired Inigo on Feb. 2, 2026, making Specialty a major contributor to its earnings profile. In the second quarter, the segment generated $504 million of gross premiums written, including $229 million from insurance and $275 million from reinsurance. As Specialty becomes a larger component of RDN's results, changes in pricing and underwriting margins are likely to have a greater impact on consolidated earnings.
Nevertheless, Radian appears capable of mitigating some pressure from softer specialty pricing through disciplined underwriting. Rather than prioritizing premium growth, management is emphasizing risk-adjusted profitability and selective capital deployment. Inigo is focusing on business that offers adequate pricing and expected returns, particularly as competition increases in property insurance and reinsurance. This approach allows RDN to reduce exposure to inadequately priced risks rather than pursue volume at the expense of profitability.
Inigo's established underwriting capabilities should further support this strategy. Its expertise on specialized markets, risk selection and underwriting analytics can help RDN maintain profitability even as pricing becomes less favorable. However, greater underwriting discipline could come at the expense of premium growth if the company chooses to avoid business that does not meet its return requirements.
Overall, RDN can likely mitigate, but not fully offset, the impact of softer specialty pricing. Selective underwriting, strong risk analytics, portfolio diversification and capital discipline should help cushion margin pressure. At the same time, the mortgage-insurance business provides an important source of earnings stability and capital generation, giving RDN greater flexibility to manage the specialty cycle while investing in attractive opportunities and returning capital to shareholders.
What About Its Peers?
W.R. Berkley Corporation WRB is probably the best example of how an insurer can maintain profitability during a moderating pricing environment by prioritizing risk-adjusted returns over premium growth. Management explicitly said it focuses on business that offers appropriate risk-adjusted returns and favorable pricing.
RLI Corp. RLI is particularly useful because it operates heavily in specialty markets. Its second-quarter combined ratio of 85.6% demonstrates that specialized underwriting and niche expertise can protect margins even as market conditions become more competitive.
RDN’s Price Performance
Shares of RDN have gained 3.4% over the past year compared with the industry’s growth of 7.5%.
Image Source: Zacks Investment Research
RDN’s Undervaluation
The stock is undervalued compared with its industry. Its forward price-to-book value of 0.99X is lower than the industry average of 2.67X. It carries a Value Score of A.
Image Source: Zacks Investment Research
Estimate Movement for RDN
The Zacks Consensus Estimate for RDN’s third-quarter and fourth-quarter 2026 EPS has moved down 2.9% and 3.6%, respectively, over the past 30 days. The same for the full-year 2026 and 2027 EPS has moved down 6% and 4%, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimate for RDN’s 2026 and 2027 EPS and revenues indicates a year-over-year increase.
RDN stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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
This article originally published on Zacks Investment Research (zacks.com).

W.R. Berkley Corporation

Trend

Trend Class

Trend Power

Pattern

EMA

EMA-20

EMA-50

EMA-100

EMA-20

EMA-50

EMA-100

Oscillators

Stochastic

RSI

MACD

Candle pattern type