Loading blog posts...
August 4, 2025 • 4 min read
W. R. Berkley Corp., a prominent player in the property and casualty (P&C) insurance market, recently released its financial results for the second quarter of 2025. For anyone interested in the health of the insurance industry, these filings provide a detailed look under the hood. We've dug into the company's latest 10-Q report to break down its performance and see what the numbers tell us about its current standing and trajectory.
Let's start with a high-level view of how W. R. Berkley generates its revenue and where the money goes. The following flow diagram illustrates the company's income statement for the first six months of 2025.
Please log in to view diagrams.
A core indicator of an insurer's growth is its premium volume. Here, W. R. Berkley (NYSE: WRB) shows continued strength. For the first six months of 2025, the company reported net premiums written of $6.5 billion, a healthy increase from $6.0 billion in the same period last year. Consequently, net premiums earned—the portion of premiums recognized as revenue during the period—grew to $6.1 billion from $5.6 billion.
This top-line growth translated into a slight increase in the bottom line. Net income attributable to common stockholders for the first half of the year came in at $818.9 million, or $2.05 per diluted share, compared to $814.4 million, or $2.01 per diluted share, in the first half of 2024.
W. R. Berkley operates through two primary segments: Insurance and Reinsurance & Monoline Excess.
Insurance: This is the company's largest segment, providing a range of commercial insurance lines like "other liability" and "professional liability." It demonstrated robust growth, with gross premiums written increasing to $6.8 billion for the half-year from $6.3 billion in 2024. Its underwriting profitability remained solid, with a GAAP combined ratio of 91.9%.
A quick primer on the combined ratio: This is a key P&C insurance metric calculated by adding the loss ratio and the expense ratio. A ratio below 100% signifies an underwriting profit, meaning the insurer is making more from premiums than it's paying out in claims and expenses.
Reinsurance & Monoline Excess: This segment, which provides reinsurance to other insurers and writes excess casualty coverage, also grew, though its profitability saw some pressure. Its combined ratio increased to 86.4% from 80.7% a year ago. The main driver was a higher loss ratio, which jumped to 57.7% from 51.3%, indicating a rise in claim costs relative to premiums earned in this part of the business.
Like all insurers, W. R. Berkley earns a significant portion of its income by investing the "float"—premiums it holds before paying claims. The company's total investment portfolio grew to $29.5 billion as of June 30, 2025, up from $27.9 billion at the end of 2024.
The portfolio's performance was a key story in the first half of the year:
W. R. Berkley's Q2 results paint a picture of a company successfully expanding its business and navigating a complex market. The strong growth in premiums is a clear positive, demonstrating its ability to capitalize on favorable pricing conditions.
However, the rising loss ratio in the Reinsurance & Monoline Excess segment warrants attention, as it highlights the persistent challenge of claims inflation across the industry. The company's strong investment results provided a crucial boost to its bottom line, offsetting some of the pressure on underwriting margins. Overall, W. R. Berkley continues to demonstrate its resilience, balancing growth ambitions with the disciplined underwriting and investment management required to succeed in the dynamic world of insurance.
Last updated: August 4, 2025