NYSE:WRB

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.

Rewards

Earnings grew by 4.8% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -3.4% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Solid track record 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: WRB has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.8%

WRB

0.8%

US Insurance

0.8%

US Market


1 Year Return

39.7%

WRB

24.3%

US Insurance

22.0%

US Market

Return vs Industry: WRB exceeded the US Insurance industry which returned 24.3% over the past year.

Return vs Market: WRB exceeded the US Market which returned 22% over the past year.


Shareholder returns

WRBIndustryMarket
7 Day-0.8%0.8%0.8%
30 Day2.5%1.1%1.7%
90 Day-1.9%1.0%5.2%
1 Year43.2%39.7%27.3%24.3%24.7%22.0%
3 Year71.1%58.8%33.8%23.5%46.9%37.3%
5 Year130.6%106.5%64.1%44.5%65.5%47.3%

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

Valuation

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

19.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WRB ($69.56) is trading above our estimate of fair value ($66.23)

Significantly Below Fair Value: WRB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WRB is poor value based on its PE Ratio (19.1x) compared to the Insurance industry average (16.7x).

PE vs Market: WRB is poor value based on its PE Ratio (19.1x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: WRB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: WRB is overvalued based on its PB Ratio (2.1x) compared to the US Insurance industry average (1.2x).


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?

-3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRB's earnings are forecast to decline over the next 3 years (-3.4% per year).

Earnings vs Market: WRB's earnings are forecast to decline over the next 3 years (-3.4% per year).

High Growth Earnings: WRB's earnings are forecast to decline over the next 3 years.

Revenue vs Market: WRB's revenue (3.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: WRB's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WRB's Return on Equity is forecast to be low in 3 years time (9.3%).


Next Steps

Past Performance

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

3.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRB has high quality earnings.

Growing Profit Margin: WRB's current net profit margins (8.8%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: WRB's earnings have grown by 3.5% per year over the past 5 years.

Accelerating Growth: WRB's earnings growth over the past year (4.8%) exceeds its 5-year average (3.5% per year).

Earnings vs Industry: WRB earnings growth over the past year (4.8%) exceeded the Insurance industry -11.3%.


Return on Equity

High ROE: WRB's Return on Equity (11.5%) 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: WRB has a low level of unsold assets or inventory.

Debt Coverage by Assets: WRB's debt is covered by short term assets (assets are 2.8x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

1.83%

Current Dividend Yield


Dividend Yield vs Market

company1.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: WRB's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: WRB's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.6%), WRB's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WRB's dividends in 3 years are forecast to be well covered by earnings (20% payout ratio).


Next Steps

Management

What is the CEO of W. R. Berkley's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Rob Berkley (46yo)

4.2yrs

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 serves as the Presid ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD11.85M) is about average for companies of similar size in the US market ($USD10.94M).

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


Management Age and Tenure

4.9yrs

Average Tenure

59yo

Average Age

Experienced Management: WRB's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

18.9yrs

Average Tenure

67yo

Average Age

Experienced Board: WRB's board of directors are seasoned and experienced ( 18.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$5,128,66221 Jun 19
Mark Brockbank
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares77,000
Max PriceUS$66.61

Ownership Breakdown

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


Management Team

  • Wm. Berkley (74yo)

    Executive Chairman of the Board

    • Tenure: 52.6yrs
    • Compensation: US$12.33m
  • Ira Lederman (65yo)

    Executive VP & Secretary

    • Tenure: 22.9yrs
    • Compensation: US$2.26m
  • Jim Shiel (59yo)

    Executive Vice President of Investments

    • Tenure: 4.5yrs
    • Compensation: US$2.26m
  • Philip Welt (59yo)

    Executive VP & General Counsel

    • Tenure: 0.9yrs
  • Rob Berkley (46yo)

    President

    • Tenure: 4.2yrs
    • Compensation: US$11.85m
  • Karen Horvath

    Vice President of External Financial Communications

    • Tenure: 4.9yrs
  • Scott Mansolillo

    SVP & Chief Compliance Officer

    • Tenure: 7.7yrs
  • Richard Baio (50yo)

    Executive VP

    • Tenure: 3.6yrs
    • Compensation: US$1.88m
  • Lucille Sgaglione (69yo)

    Executive Vice President

    • Tenure: 9.6yrs
    • Compensation: US$2.14m
  • Terrence Walker

    Senior VP & Chief Information Officer

    • Tenure: 0yrs

Board Members

  • Wm. Berkley (74yo)

    Executive Chairman of the Board

    • Tenure: 52.6yrs
    • Compensation: US$12.33m
  • Mark Brockbank (67yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$300.01k
  • Jack Nusbaum (78yo)

    Independent Director

    • Tenure: 52.6yrs
    • Compensation: US$291.51k
  • Mark Shapiro (75yo)

    Independent Director

    • Tenure: 45.6yrs
    • Compensation: US$341.51k
  • Ronald Blaylock (59yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$300.51k
  • Rob Berkley (46yo)

    President

    • Tenure: 4.2yrs
    • Compensation: US$11.85m
  • María Ferré Rangel (55yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$304.51k
  • Mary Farrell (70yo)

    Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$336.51k
  • Collin Suttie

    Chairman of Berkley Healthcare

    • Tenure: 0.08yrs
  • Christopher Augostini (54yo)

    Independent Director

    • Tenure: 7.6yrs
    • Compensation: US$305.01k

Company Information

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


Key Information

  • Name: W. R. Berkley Corporation
  • Ticker: WRB
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$12.776b
  • Shares outstanding: 183.67m
  • 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

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 Ins ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 23:32
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.