LSE:0HMZ

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Proven track record second-rate 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: 0HMZ has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

0HMZ

-10.5%

GB Insurance

-8.6%

GB Market


1 Year Return

n/a

0HMZ

-11.4%

GB Insurance

-1.3%

GB Market

Return vs Industry: Insufficient data to determine how 0HMZ performed against the UK Insurance industry.

Return vs Market: Insufficient data to determine how 0HMZ performed against the UK Market.


Shareholder returns

0HMZIndustryMarket
7 Day-2.9%-10.5%-8.6%
30 Day8.1%-6.7%-8.4%
90 Dayn/a-4.1%-5.3%
1 Yearn/a-1.4%-11.4%4.0%-1.3%
3 Yearn/a5.6%-13.1%7.6%-6.1%
5 Yearn/a15.1%-14.5%23.4%-4.8%

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?

13.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0HMZ ($77.36) is trading below our estimate of fair value ($86.29)

Significantly Below Fair Value: 0HMZ is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 0HMZ is poor value based on its PE Ratio (19.6x) compared to the Insurance industry average (13.5x).

PE vs Market: 0HMZ is poor value based on its PE Ratio (19.6x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: 0HMZ is poor value based on its PEG Ratio (4.6x)


Price to Book Ratio

PB vs Industry: 0HMZ is overvalued based on its PB Ratio (2.1x) compared to the GB Insurance industry average (1.7x).


Next Steps

Future Growth

How is W. R. Berkley forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0HMZ's forecast earnings growth (4.2% per year) is above the savings rate (0.5%).

Earnings vs Market: 0HMZ's earnings (4.2% per year) are forecast to grow slower than the UK market (13.2% per year).

High Growth Earnings: 0HMZ's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0HMZ's revenue (0.3% per year) is forecast to grow slower than the UK market (3.8% per year).

High Growth Revenue: 0HMZ's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0HMZ's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

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

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0HMZ has high quality earnings.

Growing Profit Margin: 0HMZ's current net profit margins (8.6%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: 0HMZ's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: 0HMZ's earnings growth over the past year (6.4%) exceeds its 5-year average (5% per year).

Earnings vs Industry: 0HMZ earnings growth over the past year (6.4%) underperformed the Insurance industry 23.4%.


Return on Equity

High ROE: 0HMZ's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is W. R. Berkley's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0HMZ has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0HMZ's debt is covered by short term assets (assets are 2.6x debt).


Financial Institutions Analysis

Asset Level: 0HMZ's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0HMZ has a sufficient allowance for bad loans.

Low Risk Liabilities: 0HMZ reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0HMZ has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0HMZ has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0HMZ has an appropriate level of bad loans.


Next Steps

Dividend

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

2.52%

Current Dividend Yield


Upcoming Dividend Payment

Purchase W. R. Berkley before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%1.9%markettop25%5.4%industryaverage5.3%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: 0HMZ's dividend (2.41%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: 0HMZ's dividend (2.41%) is low compared to the top 25% of dividend payers in the UK market (5.4%).


Stability and Growth of Payments

Stable Dividend: 0HMZ's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0HMZ's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12%), 0HMZ's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 0HMZ's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Rob Berkley (46yo)

4.3yrs

Tenure

US$11,852,861

Compensation

Mr. W. 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 President  ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD11.85M) is above average for companies of similar size in the UK market ($USD4.65M).

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 Board52.8yrsUS$12.33m18.98% $2.4b
William Berkley
President4.3yrsUS$11.85m0.65% $83.7m
Richard Baio
Executive VP3.8yrsUS$1.88m0.0047% $607.2k
James Shiel
Executive Vice President of Investments4.7yrsUS$2.26m0.10% $12.9m
Ira Lederman
Executive VP & Secretary23.1yrsUS$2.26m0.13% $16.8m
Lucille Sgaglione
Executive Vice President9.8yrsUS$2.14m0.0018% $229.8k
Terrence Walker
Senior VP & Chief Information Officer0yrsno datano data
Karen Horvath
Vice President of External Financial Communications5.1yrsno datano data
Philip Welt
Executive VP & General Counsel1.1yrsno data0.023% $2.9m
Scott Mansolillo
SVP & Chief Compliance Officer7.8yrsno datano data

5.1yrs

Average Tenure

59yo

Average Age

Experienced Management: 0HMZ's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Berkley
Executive Chairman of the Board52.8yrsUS$12.33m18.98% $2.4b
William Berkley
President4.3yrsUS$11.85m0.65% $83.7m
Mark Brockbank
Independent Director19.1yrsUS$300.01k0.48% $61.3m
Jack Nusbaum
Independent Director52.8yrsUS$291.51k0.080% $10.2m
Mark Shapiro
Independent Director45.8yrsUS$341.51k0.046% $5.9m
Ronald Blaylock
Independent Director19.1yrsUS$300.51k0.028% $3.6m
María Ferré Rangel
Independent Director2.8yrsUS$304.51k0.0063% $810.1k
Mary Farrell
Independent Director13.9yrsUS$336.51k0.031% $4.0m
Collin Suttie
Chairman of Berkley Healthcare0.3yrsno datano data
Christopher Augostini
Independent Director7.8yrsUS$305.01k0.019% $2.4m

19.1yrs

Average Tenure

67yo

Average Age

Experienced Board: 0HMZ's board of directors are seasoned and experienced ( 19.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 0HMZ 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: 0HMZ
  • Exchange: LSE
  • Founded: 1967
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$12.838b
  • Shares outstanding: 183.42m
  • 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
WR1BRSE (Berne Stock Exchange)YesCommon StockCHCHFOct 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. 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, as well as coverages for technology, ambulatory surgery centers, chiropractors, and concierge physicians; accident and health insurance and reinsurance products; insurance for commercial risks; pollution liability and coverages to contractors, consultants, and 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-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 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 Analysis2020/02/28 22:25
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
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.