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 net income reached $1.8 billion, with gross and net premiums written at $15.1 billion and $12.7 billion, respectively.

• Book value per share increased 26.7% for the year before dividends and buybacks, reaching $25.72 at year-end.

• Strong underwriting and investment income drove results, with consistent performance and disciplined 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

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

• Net investment income for Q4 was $338 million, with fixed maturity portfolio income up 13.3% quarter-over-quarter.

• Combined ratio ex cats for the quarter was 87.9%; calendar year combined ratio was 89.4%.

• 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.

• Book value per share grew 26.7% before and 16.4% after dividends and buybacks.

Outlook and guidance

• Expense ratio expected to remain comfortably below 30% in 2026, despite increased tech and AI investments.

• Annual effective tax rate projected at 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.

• Insurance segments expected to outperform Q4 growth in 2026; reinsurance faces more challenges.

• Benefits from tech investments anticipated to scale from 2027 onward.