DB:WR1

Stock Analysis Report

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Executive Summary

W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally.


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has W. R. Berkley's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WR1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

WR1

3.3%

DE Insurance

2.8%

DE Market


1 Year Return

-15.1%

WR1

-8.8%

DE Insurance

0.2%

DE Market

Return vs Industry: WR1 underperformed the German Insurance industry which returned -8.8% over the past year.

Return vs Market: WR1 underperformed the German Market which returned 0.2% over the past year.


Shareholder returns

WR1IndustryMarket
7 Day3.1%3.3%2.8%
30 Day-6.5%-4.9%-1.6%
90 Day1.4%18.6%22.0%
1 Year-13.6%-15.1%-3.7%-8.8%2.3%0.2%
3 Year33.3%24.5%28.9%12.2%3.4%-5.0%
5 Year68.3%50.7%66.4%32.0%11.4%-3.4%

Price Volatility Vs. Market

How volatile is W. R. Berkley's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is W. R. Berkley undervalued compared to its fair value and its price relative to the market?

3.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WR1 (€50.5) is trading below our estimate of fair value (€52.3)

Significantly Below Fair Value: WR1 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WR1 is poor value based on its PE Ratio (22x) compared to the Insurance industry average (10.4x).

PE vs Market: WR1 is poor value based on its PE Ratio (22x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: WR1 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: WR1 is overvalued based on its PB Ratio (1.9x) compared to the DE Insurance industry average (1x).


Next Steps

Future Growth

How is W. R. Berkley forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

25.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WR1's forecast earnings growth (25.6% per year) is above the savings rate (0.2%).

Earnings vs Market: WR1's earnings (25.6% per year) are forecast to grow faster than the German market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WR1's revenue (0.6% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: WR1's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WR1's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has W. R. Berkley performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WR1 has high quality earnings.

Growing Profit Margin: WR1's current net profit margins (6.4%) are lower than last year (8.5%).


Past Earnings Growth Analysis

Earnings Trend: WR1's earnings have grown by 4.6% per year over the past 5 years.

Accelerating Growth: WR1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WR1 had negative earnings growth (-24.2%) over the past year, making it difficult to compare to the Insurance industry average (10%).


Return on Equity

High ROE: WR1's Return on Equity (9%) is considered low.


Next Steps

Financial Health

How is W. R. Berkley's financial position?


Financial Position Analysis

Short Term Liabilities: WR1's short term assets ($6.8B) do not cover its short term liabilities ($17.0B).

Long Term Liabilities: WR1's short term assets ($6.8B) exceed its long term liabilities ($3.6B).


Debt to Equity History and Analysis

Debt Level: WR1's debt to equity ratio (47.5%) is considered high.

Reducing Debt: WR1's debt to equity ratio has reduced from 53.1% to 47.5% over the past 5 years.

Debt Coverage: WR1's debt is well covered by operating cash flow (46.3%).

Interest Coverage: WR1's interest payments on its debt are well covered by EBIT (4.8x coverage).


Balance Sheet


Next Steps

Dividend

What is W. R. Berkley current dividend yield, its reliability and sustainability?

2.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WR1's dividend (2.15%) is higher than the bottom 25% of dividend payers in the German market (1.26%).

High Dividend: WR1's dividend (2.15%) is low compared to the top 25% of dividend payers in the German market (3.83%).


Stability and Growth of Payments

Stable Dividend: WR1's dividend payments have been volatile in the past 10 years.

Growing Dividend: WR1's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.9%), WR1's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WR1's dividends in 3 years are forecast to be well covered by earnings (19.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Rob Berkley (47yo)

4.75yrs

Tenure

US$11,017,931

Compensation

Mr. William Robert Berkley Jr., also known as Rob, has been the President and Chief Executive Officer of W. R. Berkley Corporation since October 2015 and serves as its Director. Mr. Berkley served as Presi ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD11.02M) is above average for companies of similar size in the German market ($USD5.36M).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Berkley
Executive Chairman of the Board53.17yrsUS$11.29m19.48% $1.7b
William Berkley
President4.75yrsUS$11.02m0.67% $60.3m
Richard Baio
Executive VP4.17yrsUS$1.99m0.0059% $529.7k
James Shiel
Executive Vice President of Investments5.08yrsUS$2.13m0.090% $8.1m
Lucille Sgaglione
Executive Vice President10.17yrsUS$2.07m0.0066% $588.9k
Karen Horvath
Vice President of External Financial Communications5.5yrsno datano data
Philip Welt
Executive VP1.5yrsno data0.023% $2.1m
Scott Mansolillo
SVP & Chief Compliance Officer8.25yrsno datano data
Jonathan Levine
VP & Chief Marketing Officer7yrsno datano data
Carol LaPunzina
Senior Vice President of Human Resources10.83yrsno datano data

6.3yrs

Average Tenure

60yo

Average Age

Experienced Management: WR1's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Berkley
Executive Chairman of the Board53.17yrsUS$11.29m19.48% $1.7b
William Berkley
President4.75yrsUS$11.02m0.67% $60.3m
Mark Brockbank
Independent Director19.5yrsUS$300.54k0.49% $44.2m
Jack Nusbaum
Independent Director53.17yrsUS$291.54k0.084% $7.5m
Mark Shapiro
Independent Director46.17yrsUS$340.54k0.049% $4.4m
Ronald Blaylock
Independent Director19.5yrsUS$299.04k0.030% $2.7m
Mary Farrell
Independent Director14.33yrsUS$335.54k0.034% $3.0m
Collin Suttie
Chairman of Berkley Healthcare0.67yrno datano data
Christopher Augostini
Independent Director8.17yrsUS$305.54k0.021% $1.9m
William Johnston
Chairman of Berkley Luxury Group0.42yrno datano data

19.5yrs

Average Tenure

69.5yo

Average Age

Experienced Board: WR1's board of directors are seasoned and experienced ( 19.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

W. R. Berkley Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: W. R. Berkley Corporation
  • Ticker: WR1
  • Exchange: DB
  • Founded: 1967
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$10.093b
  • Listing Market Cap: US$8.977b
  • Shares outstanding: 178.72m
  • Website: https://www.berkley.com

Number of Employees


Location

  • W. R. Berkley Corporation
  • 475 Steamboat Road
  • Greenwich
  • Connecticut
  • 6830
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WRBNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 1973
WR1DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1973
0HMZLSE (London Stock Exchange)YesCommon StockGBUSDOct 1973
WRB *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 1973

Biography

W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally. It operates through two segments, Insurance and Reinsurance & Monoline Excess. The Insurance segment underwrites commercial insurance business, including premises operations, commercial automobile, property, products liability, and professional liability lines. It also provides workers’ compensation, property casualty, general liability, professional liability, and excess and umbrella coverage insurance products; accident and health insurance and reinsurance products; insurance for commercial risks; specialty environmental products for contractors, consultants, and property owners; and liquor liability and inland marine coverage for small to medium-sized insureds. In addition, this segment offers directors and officers, and surety risk products, as well as products for life sciences and travel industries; coverage for excess liability, construction wrap-ups, and completed operations; cyber risk solutions; casualty, group life, and crime and fidelity related insurance products; personal lines insurance solutions, including home, condo/co-op, and collectibles; automobile, law enforcement, public officials and educator's legal, and employment practices liability, as well as incidental medical insurance products; and at-risk and alternative risk insurance program management services. The Reinsurance & Monoline Excess segment provides other insurance companies and self-insureds with assistance in managing their net risk through reinsurance on a portfolio basis through treaty reinsurance or on an individual basis through facultative reinsurance. W. R. Berkley Corporation was founded in 1967 and is headquartered in Greenwich, Connecticut. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/06 21:24
End of Day Share Price2020/07/06 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.