W.R. Berkley makes money by underwriting insurance and reinsurance policies through its two segments: Insurance and Reinsurance & Monoline Excess.

  • In the Insurance segment (88.1% of Revenue), it sells commercial lines coverage to businesses - like liability, workers’ comp, and property - earning premiums and aiming to pay out less in claims than it collects.
  • In the Reinsurance & Monoline Excess segment (11.9% of Revenue), it takes on risks from other insurers for a fee, often in specialty or high-limit areas. Profits come from disciplined underwriting (writing more premiums than it pays in claims) and investing the float - premium money held before claims are paid.

W.R. Berkley is still run by the family that founded it - Bill Berkley remains deeply involved, while his son Rob serves as CEO. The company oversees nearly 60 insurance businesses, each operating with a high degree of independence but within clear risk and return guidelines set by the top. William Berkley remains the largest shareholder with around 20.67% ownership. The biggest institutional holders include Vanguard (9.5%), BlackRock (5.1%), Eaton Vance (4.1%), and State Street (3.9%).

Over the years, W.R. Berkley has strengthened its product and service portfolio and extended its global reach. In 2024, its top three contributors to gross premiums were Admiral Insurance (7.3%), W/R/B Underwriting (4.1%), and Berkley One (3.7%). Admiral focuses on hard-to-place commercial risks in the excess and surplus market, distributing exclusively through wholesale brokers. W/R/B Underwriting operates within the Lloyd’s market, offering specialist coverages like property and professional indemnity. Berkley One targets high-net-worth clients with tailored personal insurance for homes, autos, fine art, and more.

W.R. Berkley operates in the P&C industry - a market that stays essential even when the economy slows. After a few years of high inflation and rising interest rates, the industry continues to benefit from solid underwriting conditions and steady demand. W.R. Berkley benefits from businesses who still need insurance to operate, whether it’s for property, liability, or more specialized risks like cyber threats or environmental exposure.

W.R. Berkley competes with larger firms like Chubb, Travelers, and AIG, as well as niche players like Markel, but Berkley maintains strong underwriting margins by focusing on specialty lines and giving local teams autonomy to price risk. Its decentralized model offers speed and flexibility that larger, centralized insurers often lack. In reinsurance, it faces pressure from global giants like Swiss Re, Munich Re, Berkshire Hathaway, Partner Re and others.

Since 2016, W.R. Berkley’s revenue has climbed from $6.29 billion to $10.4 billion and is projected to reach roughly $14 billion by 2027. Net income followed suit, rising from $601 million to $1.7 billion in 2024 - an annual growth rate of about 12 percent. Profitability is solid: the EBITDA margin improved to 19.2 percent in 2024 (up from 17.9 percent in 2023), while operating and net margins reached 20.7% and 15.2%, respectively.

Leverage remains modest at 1.16x net debt-to-EBITDA, even after edging up from 0.25x a year earlier. Capital spending totaled $105 million, yet free cash flow hit $3.3 billion - up 17% YoY and compounding at roughly 14% since 2020. The company has paid a dividend every year since 1978 and grown it at an 11 % CAGR from 2006 to 2024 (excluding specials), making Berkley an appealing pick for income-focused investors seeking steady, rising payouts.

W.R. Berkley posted strong Q1 2025 results, with net premiums written reaching a record $3.1 billion, up 10% YoY. Despite $111 million in catastrophe losses, the combined ratio held at a solid 90.9%, with the underlying accident year ratio at 87.2%. ROE came in at 19.9%, supported by continued underwriting discipline and favorable pricing - rate increases averaged 8.3% excluding workers' comp. Investment income rose 12.6% to $360 million, driven by higher reinvestment yields and growing investable assets, which hit a record $30.7 billion. Book value per share rose 7.1% in the quarter, reflecting strong capital generation and operating momentum.

The group is currently trading at a P/E ratio of 13.4x, below its 10-year average of 16x, while its 2024 price-to-book ratio stands at 2.65x, above the long-term average of 2.0x. At the same time, EPS grew by 32.1% between 2023 and 2024, rising from $3.30 to $4.36, with projections pointing to $5.40 by 2027.

W.R. Berkley is well-positioned to benefit from long-term growth in commercial insurance, supported by rising regulatory demands, evolving risk exposures, and steady economic activity. Its focus on specialty lines, geographic reach, and disciplined underwriting give it an edge in capturing emerging opportunities while managing volatility. Though the market may face pricing pressure and growing competition, Berkley’s strong financials, operational flexibility, and track record of profitability across cycles make it a resilient and attractive player in the property and casualty space.