W.R. Berkley (NYSE:WRB) executives said 2025 ended with record quarterly and full-year results, driven by strong underwriting income, higher net investment income from the core portfolio, and continued capital returns, while also pointing to increasingly competitive conditions in parts of the insurance and reinsurance markets heading into 2026.
Record fourth-quarter operating earnings and underwriting income
In prepared remarks, CFO Rich Baio said the company generated record quarterly operating earnings of $450 million, or $1.13 per share, up 9.5% from the prior year. Net income was also $450 million, or $1.13 per share, producing a 21.4% return on beginning-of-year equity.
The expense ratio improved to 28.2%, which management said reflected record net premiums earned of $3.2 billion, operational efficiencies tied to technology and business process outsourcing, and a non-recurring benefit related to commission accruals. In Q&A, Baio sized that non-recurring benefit at about 30 basis points on the expense ratio. Management said it expects the expense ratio to remain “comfortably below 30%” in 2026, barring a meaningful market change, while also signaling increased technology and data-related investment.
For the quarter, the current accident-year loss ratio excluding catastrophes was 59.7%. The current accident-year combined ratio excluding catastrophes was 87.9%, and the calendar-year combined ratio was 89.4%. By segment, the insurance business posted a current accident-year loss ratio excluding catastrophes of 60.6%, while the reinsurance and monoline excess segment reported 53.9%, producing a current accident-year combined ratio excluding catastrophes of 83%.
Investment income tailwinds and portfolio positioning
Baio said invested assets rose 11.4% in 2025 to a record $33.2 billion, supported by strong operating cash flow of nearly $1 billion in the quarter and $3.6 billion for the year.
Fixed maturity investment income increased 13.3% quarter over quarter to $346 million, which management linked to higher reinvestment rates as securities rolled off at lower book yields. Offsetting some of that strength were $32 million of investment fund losses in the quarter, resulting in overall pre-tax net investment income of $338 million. On the call, management said the investment fund volatility was “primarily driven by one fund,” describing the outcome as disappointing and adding that it does not expect that to be the norm going forward.
The company’s investment portfolio credit quality was described as “very strong” at AA-, and fixed maturity duration including cash and equivalents increased to 3.0 years from 2.6 years at year-end 2024. Rob Berkley added that “neutral” duration for the company is closer to just under four years when compared with the average life of loss reserves, implying room to extend duration further.
Capital return and balance sheet flexibility
Management emphasized continued capital returns. In the fourth quarter, W.R. Berkley returned $608 million to investors, including $412 million through special and regular dividends and $196 million of share repurchases. Total capital returned during 2025 was $971 million.
Baio said that in addition to returning more than 10% of stockholders’ equity, the company grew stockholders’ equity by 15.6% in 2025. Financial leverage was described as “historically low” at 22.6%, with the next scheduled debt maturity in 2037.
In response to questions about the pace of buybacks, Bill Berkley said the company continuously evaluates uses for excess capital, calling shares attractive given the company’s stated view that it is generating “20%+” returns on capital. He said the mix between repurchases and special dividends is judgment-based and will evolve with opportunities, while also noting the company has become more financially conservative, moving from roughly 35% debt-to-equity historically to the current level.
Market conditions: pressure points in auto, property, and reinsurance
Rob Berkley offered extensive market commentary, highlighting several areas where he sees increased competitive pressure. He said auto liability “continues to be a challenge,” adding that earlier “green shoots” in 2025 proved to be “a mirage” and expressing hope that the market finds a bottom toward the end of 2026. He later noted the company is shrinking auto liability exposure, calling it a leading example of a line where pricing does not make sense.
In large account property, particularly shared and layered programs, Berkley described conditions as a “feeding frenzy,” pointing to London and Lloyd’s as “the hotspot.” On property reinsurance, he provided a specific January 1 renewal data point: the company’s main property catastrophe treaty saw a 19% risk-adjusted rate decrease. He said that dynamic could “waterfall” into broader market competition and suggested early signs that competitiveness in property catastrophe is spilling into casualty as some market participants seek premium to meet targets.
In professional lines, he cited D&O as a continuing challenge and added architects and engineers (A&E) as another pressured area. He also highlighted brighter spots, including opportunities for “meaningful rate” in the smaller end of casualty and in excess and umbrella, as well as opportunities in E&S and parts of the standard market.
Berkley also pointed to growth opportunities in medical stop-loss within accident and health and said Berkley One, its private client business, continues to have room to grow. On workers’ compensation, he said conditions are not rosy but cited early signs that California participants may be “starting to come to grips with reality,” with indications of “a backbone reemerging.” Management linked some fourth-quarter workers’ comp movement to exposure decisions and timing of renewals at certain operations.
On premium growth, Berkley cautioned against extrapolating fourth-quarter trends, noting October and November were “flat-ish,” while gross written premium in December was up 7% and early January indicators were described as encouraging. He said the company is not feeling the same across-the-board pressure to keep pushing rate, though it remains focused on protecting margins. He also told analysts that insurance operations could do better than the fourth quarter pace, while reinsurance may become more challenging more quickly.
Executives repeatedly returned to technology and AI as both an operational and underwriting issue. Berkley said the company is already using tools to improve underwriting intake efficiency and prioritization, and that technology investments are ongoing rather than “one and done,” with benefits expected to begin showing up in 2027 and scaling thereafter.
For the full year, management summarized record results across key metrics, including $15.1 billion of gross premiums written, $12.7 billion of net premiums written, $1.2 billion of underwriting income, $1.4 billion of net investment income, $1.7 billion of operating income, and $1.8 billion of net income, along with book value per share growth (before and after dividends and repurchases) of 26.7% and 16.4%, respectively.
About W.R. Berkley (NYSE:WRB)
W. R. Berkley Corporation (NYSE: WRB) is a publicly traded insurance holding company that underwrites and sells commercial property and casualty insurance, specialty insurance products, and reinsurance. Headquartered in Greenwich, Connecticut, the company operates a portfolio of underwriting businesses that focus on niche and specialty commercial risks, offering coverage tailored to industries such as transportation, construction, professional services and other commercial lines.
The company’s product mix includes primary and excess casualty, property, professional liability, environmental and other specialty lines, together with treaty and facultative reinsurance solutions.
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