W. R. Berkley (WRB) Q4 2025 earnings summary

Executive summary

• Achieved record quarterly operating earnings of $450 million ($1.13 per share), up 9.5% year-over-year, with a 21.4% return on beginning equity.

• Full-year 2025 saw record gross and net premiums written ($15.1B and $12.7B), underwriting income ($1.2B), net investment income ($1.4B), operating income ($1.7B), and net income ($1.8B).

• Book value per share grew 26.7% before and 16.4% after dividends and share repurchases, ending at $25.72.

• Consistent performance and strong capital position highlighted, with a focus on disciplined underwriting and capital management.

• Net income to common stockholders was $449.5 million for Q4 and $1.78 billion for the year; operating income set records at $450 million for Q4 and $1.73 billion for the year.

Financial highlights

• Gross premiums written grew to $3.61 billion in Q4 and $15.1 billion for the year; net premiums written reached $3.0 billion in Q4 and $12.7 billion for the year.

• Net investment income rose 7.2% year-over-year to $1.43 billion, with fixed-maturity investment income up 13.3% in Q4.

• Q4 pre-tax underwriting income reached $338 million, up 14.9% year-over-year.

• Combined ratio improved to 89.4% in Q4 and 90.7% for the year, reflecting strong underwriting discipline.

• Invested assets grew 11.4% to $33.2 billion in 2025.

Outlook and guidance

• Expense ratio expected to remain comfortably below 30% in 2026, barring major market changes.

• Continued meaningful investments in technology and AI planned for 2026 and 2027, with benefits expected to scale from 2027 onward.

• Annual effective tax rate projected at approximately 23% for 2026.

• Management expects continued excellent margins and select growth opportunities in 2026, with a focus on exceeding a 15% after-tax return on beginning equity.

• Investment income is positioned for further growth due to higher new-money rates and strong operating cash flows.