ACGL - W. R. Berkley Leveraging A Hard Market To Refuel For Growth
- W. R. Berkley is taking advantage of hard markets across most of its business to write growing amounts of business, with premium growth well in excess of rates.
- Looking at the paid/incurred ratio and other recent trends, it looks like the company is being relatively conservative with reserving - a positive for future earnings.
- I see some risk of mean reversion in the company's alternative investments portfolio, but higher rates should boost returns from the low-duration fixed income portfolio.
- W. R. Berkley seldom ever looks conventionally cheap, but the shares don't look out of line with long-term core earnings-based value and are worth watching for a pullback.
For further details see:
W. R. Berkley Leveraging A Hard Market To Refuel For Growth