Property casualty insurer W. R. Berkley (NYSE: WRB) fell short of the markets revenue expectations in Q4 CY2025 as sales only rose 1.5% year on year to $3.72 billion. Its non-GAAP profit of $1.13 per share was in line with analysts’ consensus estimates.
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W. R. Berkley (WRB) Q4 CY2025 Highlights:
- Net Premiums Earned: $3.18 billion vs analyst estimates of $3.19 billion (5.6% year-on-year growth, in line)
- Revenue: $3.72 billion vs analyst estimates of $3.75 billion (1.5% year-on-year growth, 0.8% miss)
- Combined Ratio: 89.4% vs analyst estimates of 90.3% (94.3 basis point beat)
- Adjusted EPS: $1.13 vs analyst estimates of $1.12 (in line)
- Book Value per Share: $25.72 vs analyst estimates of $27.51 (16.4% year-on-year growth, 6.5% miss)
- Market Capitalization: $25.51 billion
Company Overview
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
Revenue Growth
Insurance companies generate revenue three ways. The first is the core insurance business itself, represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected but not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from policy administration, annuities, and other value-added services. Thankfully, W. R. Berkley’s 12.7% annualized revenue growth over the last five years was excellent. Its growth surpassed the average insurance company and shows its offerings resonate with customers, a great starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. W. R. Berkley’s annualized revenue growth of 10.1% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, W. R. Berkley’s revenue grew by 1.5% year on year to $3.72 billion, falling short of Wall Street’s estimates.
Net premiums earned made up 85.2% of the company’s total revenue during the last five years, meaning W. R. Berkley barely relies on non-insurance activities to drive its overall growth.
While insurers generate revenue from multiple sources, investors view net premiums earned as the cornerstone - its direct link to core operations stands in sharp contrast to the unpredictability of investment returns and fees.
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Book Value Per Share (BVPS)
Insurers are balance sheet businesses, collecting premiums upfront and paying out claims over time. Premiums collected but not yet paid out, often referred to as the float, are invested and create an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.
We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.
W. R. Berkley’s BVPS grew at a solid 10.3% annual clip over the last five years. BVPS growth has also accelerated recently, growing by 15.2% annually over the last two years from $19.37 to $25.72 per share.
Over the next 12 months, Consensus estimates call for W. R. Berkley’s BVPS to grow by 20% to $27.51, elite growth rate.
Key Takeaways from W. R. Berkley’s Q4 Results
We struggled to find many positives in these results. Its book value per share missed and its EPS was in line with Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $67.58 immediately after reporting.
Should you buy the stock or not? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
