- W. R. Berkley posted very strong fourth quarter results, with good cost discipline and low losses leveraging a small NWP beat into a 25% after-tax operating income beat.
- The company has seen rate hikes (excluding workers comp) accelerate to the mid-teens, and the company is actively growing specialty lines like commercial auto and professional liability.
- High rates are being supported by reserve deficiencies at other underwriters, loss inflation, and low interest rates; WRB is less exposed here but still benefiting from the rate momentum.
- W. R. Berkley deserves a premium multiple, but today's valuation already gives the stock a generous premium relative to historical norms.
For further details see:
W. R. Berkley Reaping The Rewards Of Other Insurers' Mistakes