WRB - W. R. Berkley: Good Global Insurer Needs A Better Price
2024-03-28 12:23:45 ET
Summary
- W. R. Berkley is a holding group consisting of 60 individual insurance companies that provide specialty insurance products globally.
- The company has a strong balance sheet with assets of $37.2 billion and reserves for potential claims well-covered by assets.
- Management plans to allocate capital through reinvestment in existing businesses, starting new businesses or acquisitions, and continuing buybacks and dividends.
- While WRB's execution has been strong, it's also trading at a historically unattractive premium to tangible book value.
W. R. Berkley ( WRB ) is another insurance company I felt like covering. While not a bad business, it does differ in some ways from your typical insurance play, and I suspect the current price won't be attractive for the long-term investor, given its peculiarities. As usual, I'll talk about its numbers and plans of management going forward and explain why it's just a Hold for now.
Business Model
Berkley is a holding group that consists of 60 individual companies, which operate in dozens of countries (it does not appear to provide its business concentration by geography). Through its holdings, it provides specialty insurance products (of property-casualty) to commercial lines....
W. R. Berkley: Good Global Insurer, Needs A Better Price