W. R. Berkley Corporation Reports First Quarter 2026 Results

W. R. Berkley Corporation Reports First Quarter 2026 Results Return on Equity of 21.2%; Net Income Grew 23.4% to $515.2 Million and Operating Income Grew 22.5% to a Record $514.3 Million W. R. Berkley Corporation (NYSE: WRB) today reported its first quarter 2026 results. Summary Financial Data (Amounts in thousands, except per share data) First Quarter 2026 2025 Gross premiums written $ 3,785,766 $ 3,683,939 Net premiums written 3,174,345 3,133,302 Net income to common stockholders 515,216 417,571 Net income per diluted share 1.31 1.04 Operating income (1) 514,257 419,956 Operating income per diluted share (1) 1.30 1.05 Return on equity (2) 21.2 % 19.9 % Operating return on equity (1) (2) 21.2 % 20.0 % (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). The Company’s 2025 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. First quarter highlights included: Return on equity of 21.2%.Net income and operating income grew to $515.2 million and a record $514.3 million, respectively.Net investment income grew 12.2% to a record of $404.3 million.The current accident year combined ratio before catastrophe losses of 2.4 loss ratio points was 88.3%, and the reported combined ratio was 90.7%.Average rate increases excluding workers' compensation were approximately 7.2%.Total capital returned to shareholders was $336.1 million, consisting of $302.4 million of share repurchases and $33.7 million of regular dividends. Management commented: The Company continued to deliver outstanding results in the first quarter of 2026 with an annualized 21.2% return on beginning‑of‑year stockholders’ equity, reflecting ongoing growth in underwriting and investment income. We returned total capital of $336 million in the quarter through regular dividends and share repurchases. Our 88.3% accident year combined ratio excluding catastrophe losses demonstrated the stability of underwriting earnings generated through our diversified operating model. We are growing our business where pricing, terms, and conditions support attractive risk adjusted returns. Our teams continue to execute across a wide range of market conditions, with gross and net premiums written in the insurance segment increasing by 4.5% and 3.2%, respectively. Net investment income grew by 12.2%, driven by a higher level of invested assets from continued strong operating cash flow, improved portfolio yields, and strong investment fund income, enhancing overall profitability. The credit quality of the fixed-maturity portfolio remains high with an average rating of AA- and a 3.1 year duration. Our balance sheet remains a source of strength, and we prioritized effective capital management in the first quarter by repurchasing nearly 4.5 million shares. Our disciplined focus on long-term risk-adjusted return continues to drive superior performance across market cycles and create long term value for our shareholders. We remain confident in our ability to exceed our 15% target after‑tax return on equity for the foreseeable future. Webcast Conference Call The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on April 21, 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 2026 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 government 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 cyber security-related risks; the increasing use of artificial intelligence technologies by us or third-parties on which we rely could expose us to technological, security, legal, and other risks; natural and man-made catastrophic losses, including as a result of terrorist activities or the ongoing conflict with Iran; the risk of future pandemics, as well as the continuing effects of the COVID-19 pandemic; the impact of climate-related risks, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, 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 to such conditions, on our results and financial condition; 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; cyber security breaches of our information technology systems and the information technology systems of our vendors and other third parties, or related processes and systems; 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) First Quarter 2026 2025 Revenues: Net premiums written $ 3,174,345 $ 3,133,302 Change in unearned premiums (59,173 ) (120,921 ) Net premiums earned 3,115,172 3,012,381 Net investment income 404,333 360,292 Net investment (losses) gains: Net realized and unrealized (losses) gains on investments (15,629 ) 15,711 Change in allowance for credit losses on investments (146 ) 644 Net investment (losses) gains (15,775 ) 16,355 Revenues from non-insurance businesses 156,551 128,909 Insurance service fees 28,230 28,929 Other Income 1,823 533 Total Revenues 3,690,334 3,547,399 Expenses: Loss and loss expenses 1,936,025 1,900,792 Other operating costs and expenses 970,660 949,910 Expenses from non-insurance businesses 135,842 126,364 Interest expense 31,709 31,727 Total expenses 3,074,236 3,008,793 Income before income tax 616,098 538,606 Income tax expense (100,523 ) (121,257 ) Net Income before noncontrolling interests 515,575 417,349 Noncontrolling interest (359 ) 222 Net income to common stockholders $ 515,216 $ 417,571 Net income per share: Basic $ 1.31 $ 1.05 Diluted $ 1.31 $ 1.04 Average shares outstanding (1): Basic 392,264 396,929 Diluted 394,779 399,825 (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) First Quarter 2026 2025 Insurance: Gross premiums written $ 3,361,567 $ 3,216,952 Net premiums written 2,779,717 2,694,455 Net premiums earned 2,765,492 2,642,507 Pre-tax income 524,663 509,505 Loss ratio 63.9 % 63.9 % Expense ratio 28.3 % 27.8 % GAAP Combined ratio 92.2 % 91.7 % Reinsurance & Monoline Excess: Gross premiums written $ 424,199 $ 466,987 Net premiums written 394,628 438,847 Net premiums earned 349,680 369,874 Pre-tax income 142,706 120,380 Loss ratio 48.3 % 57.7 % Expense ratio 30.3 % 27.7 % GAAP Combined ratio 78.6 % 85.4 % Corporate and Eliminations: Net investment (losses) gains $ (15,775 ) $ 16,355 Interest expense (31,709 ) (31,727 ) Other expenses (3,787 ) (75,907 ) Pre-tax loss (51,271 ) (91,279 ) Consolidated: Gross premiums written $ 3,785,766 $ 3,683,939 Net premiums written 3,174,345 $ 3,133,302 Net premiums earned 3,115,172 $ 3,012,381 Pre-tax income 616,098 538,606 Loss ratio 62.1 % 63.1 % Expense ratio 28.6 % 27.8 % GAAP Combined ratio 90.7 % 90.9 % (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) First Quarter 2026 2025 Net premiums written: Other liability $ 1,119,418 $ 1,108,264 Short-tail lines (1) 630,989 600,192 Auto 417,811 389,154 Workers' compensation 329,018 340,607 Professional liability 282,481 256,238 Total Insurance 2,779,717 2,694,455 Casualty (2) 157,985 186,790 Monoline excess 127,630 119,900 Property (2) 109,013 132,157 Total Reinsurance & Monoline Excess 394,628 438,847 Total $ 3,174,345 $ 3,133,302 Current accident year losses from catastrophes: Insurance $ 75,476 $ 70,617 Reinsurance & Monoline Excess 202 40,491 Total $ 75,678 $ 111,108 Net Investment income: Core portfolio (3) $ 354,491 $ 316,940 Investment funds 39,529 27,023 Arbitrage trading account 10,313 16,329 Total $ 404,333 $ 360,292 Net realized and unrealized (losses) gains on investments: Net realized losses on investments $ (11,135 ) $ (4,235 ) Change in unrealized (losses) gains on equity securities (4,494 ) 19,946 Total $ (15,629 ) $ 15,711 Other operating costs and expenses: Policy acquisition and insurance operating expenses $ 889,185 $ 838,246 Insurance service expenses 23,166 23,246 Net foreign currency (gains) losses (17,011 ) 19,378 Other costs and expenses 75,320 69,040 Total $ 970,660 $ 949,910 Cash flow from operations $ 667,857 $ 743,817 Reconciliation of net income to operating income: Net income $ 515,216 $ 417,571 Pre-tax investment losses (gains), net of related expenses 15,775 (16,355 ) Pre- tax net foreign currency (gains) losses (17,011 ) 19,378 Income tax expense 277 (638 ) Operating income after-tax (4) $ 514,257 $ 419,956 (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. The Company’s 2025 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) March 31, 2026 December 31, 2025 Net invested assets (1) $ 33,418,412 $ 33,173,381 Total assets 44,315,553 43,926,843 Reserves for losses and loss expenses 22,616,260 22,207,773 Senior notes and other debt 1,830,328 1,829,198 Subordinated debentures 1,010,707 1,010,527 Common stockholders' equity (2) 9,739,550 9,700,818 Common stock outstanding (3) 372,700 377,156 Book value per share (4) 26.13 25.72 Tangible book value per share (4) 25.52 25.11 (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 March 31, 2026, reflected in common stockholders' equity are after-tax unrealized investment losses of $270 million and unrealized currency translation losses of $331 million. 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. (3) During the three months ended March 31, 2026, the Company repurchased 4,471,634 shares of its common stock for $302 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 March 31, 2026 (Amounts in thousands, except percentages) Carrying Value Percent of Total Fixed maturity securities: United States government and government agencies $ 4,383,573 13.1 % State and municipal: Special revenue 1,108,270 3.3 % State general obligation 229,479 0.7 % Local general obligation 211,435 0.6 % Corporate backed 157,193 0.5 % Pre-refunded 74,612 0.2 % Total state and municipal 1,780,989 5.3 % Mortgage-backed securities: Agency 4,299,948 12.9 % Commercial 221,983 0.7 % Residential - Prime 198,589 0.6 % Residential - Alt A 1,281 0.0 % Total mortgage-backed securities 4,721,801 14.2 % Asset-backed securities 3,868,945 11.6 % Corporate: Financial 3,534,559 10.6 % Industrial 3,511,729 10.5 % Utilities 1,519,659 4.5 % Other 210,223 0.6 % Total corporate 8,776,170 26.2 % Foreign government 1,976,931 5.9 % Total fixed maturity securities (1) 25,508,409 76.3 % Equity securities available for sale: Common stocks 849,670 2.5 % Preferred stocks 619,981 1.9 % Total equity securities available for sale 1,469,651 4.4 % Cash and cash equivalents (2) 2,132,557 6.4 % Investment funds 1,398,022 4.2 % Real estate 1,303,741 3.9 % Arbitrage trading account 1,164,872 3.5 % Loans receivable 441,160 1.3 % Net invested assets $ 33,418,412 100.0 % (1) Total fixed maturity securities had an average rating of AA- and an average duration of 3.1 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. Karen A. Horvath Vice President - External Financial Communications (203) 629-3000 Source: W. R. Berkley Corporation