NYSE:WRB

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. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: WRB's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-4.9%

WRB

-1.0%

US Insurance

-0.5%

US Market


1 Year Return

-3.7%

WRB

-6.3%

US Insurance

18.3%

US Market

Return vs Industry: WRB exceeded the US Insurance industry which returned -6.2% over the past year.

Return vs Market: WRB underperformed the US Market which returned 19.1% over the past year.


Shareholder returns

WRBIndustryMarket
7 Day-4.9%-1.0%-0.5%
30 Day-0.4%6.5%3.6%
90 Day6.3%9.0%5.6%
1 Year-3.1%-3.7%-3.8%-6.3%21.0%18.3%
3 Year58.7%48.4%10.5%2.4%45.2%35.6%
5 Year96.3%76.4%45.7%27.5%89.8%68.8%

Long-Term 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?

36.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WRB ($65.48) is trading above our estimate of fair value ($51.58)

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 (36.5x) compared to the US Insurance industry average (14x).

PE vs Market: WRB is poor value based on its PE Ratio (36.5x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: WRB is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: WRB is overvalued based on its PB Ratio (1.9x) compared to the US Insurance industry average (0.9x).


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?

25.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WRB's forecast earnings growth (25% per year) is above the savings rate (2.2%).

Earnings vs Market: WRB's earnings (25% per year) are forecast to grow faster than the US market (21.9% per year).

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

Revenue vs Market: WRB's revenue (5.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: WRB's revenue (5.8% 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 (13.5%).


Next Steps

Past Performance

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

0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WRB has high quality earnings.

Growing Profit Margin: WRB's current net profit margins (4.4%) are lower than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: WRB's earnings have grown by 0.1% per year over the past 5 years.

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

Earnings vs Industry: WRB had negative earnings growth (-51.4%) over the past year, making it difficult to compare to the Insurance industry average (5.9%).


Return on Equity

High ROE: WRB's Return on Equity (5.6%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: WRB's short term assets ($8.7B) do not cover its short term liabilities ($18.0B).

Long Term Liabilities: WRB's short term assets ($8.7B) exceed its long term liabilities ($4.2B).


Debt to Equity History and Analysis

Debt Level: WRB's debt to equity ratio (50.9%) is considered high.

Reducing Debt: WRB's debt to equity ratio has increased from 47.2% to 50.9% over the past 5 years.

Debt Coverage: WRB's debt is well covered by operating cash flow (48.3%).

Interest Coverage: WRB's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

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

0.73%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: WRB's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: WRB's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (4.2%).


Stability and Growth of Payments

Stable Dividend: WRB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: WRB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WRB is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

8.0yrs

Average management tenure


CEO

Rob Berkley (47 yo)

5.08yrs

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 the P...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD11.02M) is about average for companies of similar size in the US market ($USD11.00M).

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 Board53.5yrsUS$11.29m19.54%
$ 2.3b
William Berkley
President5.08yrsUS$11.02m0.67%
$ 78.6m
Richard Baio
Executive VP4.5yrsUS$1.99m0.037%
$ 4.3m
James Shiel
Executive Vice President of Investments5.42yrsUS$2.13m0.090%
$ 10.5m
Lucille Sgaglione
Executive Vice President10.5yrsUS$2.07m0.0019%
$ 221.7k
Philip Welt
Executive VP1.83yrsno data0.024%
$ 2.8m
Scott Mansolillo
SVP & Chief Compliance Officer8.58yrsno datano data
Jonathan Levine
VP & Chief Marketing Officer7.33yrsno datano data
Carol LaPunzina
Senior Vice President of Human Resources11.17yrsno datano data
Edward Linekin
Senior Vice President of Investments2.83yrsno datano data
Robert Hewitt
Executive Vice President18.83yrsno datano data
Robert Gosselink
Senior Vice President of Insurance Risk Management17.08yrsno datano data

8.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: WRB's management team is seasoned and experienced (8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Berkley
Executive Chairman of the Board53.5yrsUS$11.29m19.54%
$ 2.3b
William Berkley
President5.08yrsUS$11.02m0.67%
$ 78.6m
Mark Brockbank
Independent Director19.83yrsUS$300.54k0.49%
$ 57.6m
Jack Nusbaum
Independent Director53.5yrsUS$291.54k0.084%
$ 9.8m
Mark Shapiro
Independent Director46.5yrsUS$340.54k0.050%
$ 5.8m
Ronald Blaylock
Independent Director19.83yrsUS$299.04k0.031%
$ 3.6m
María Ferré Rangel
Independent Director3.5yrsUS$305.54k0.0084%
$ 986.1k
Mary Farrell
Independent Director14.67yrsUS$335.54k0.034%
$ 3.9m
Leigh Pusey
Independent Director2.5yrsUS$300.54k0.0059%
$ 692.0k
Collin Suttie
Chairman of Berkley Healthcare1yrno datano data
Christopher Augostini
Independent Director8.5yrsUS$305.54k0.021%
$ 2.5m
William Johnston
Chairman of Berkley Luxury Group0.75yrno datano data

17.3yrs

Average Tenure

64yo

Average Age

Experienced Board: WRB's board of directors are seasoned and experienced ( 17.3 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: WRB
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$11.670b
  • Shares outstanding: 178.22m
  • 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
W1RB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COM NPVBRBRLOct 2020

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 & Monoli...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/22 23:49
End of Day Share Price2020/11/20 00:00
Earnings2020/09/30
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.