Third Quarter 2026
Filed Oct 19, 2026W. R. Berkley Corporation Reports Third Quarter 2026 Results Return on Equity of 18.4% and Operating Return on Equity of 18.8%; Pre-Tax Underwriting Income for the Insurance Segment Grew 10.6%; Quarterly Net Investment Income Grew to $383.5 Million Driven by Core Portfolio Increase of 12.0%
Third-quarter operating income and operating income per diluted share increased year over year, underwriting profitability remained strong, and net investment income increased. Reported net income declined as the company recorded net investment losses compared with net investment gains in the prior-year quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter 2026 gross premiums writtenGAAP | $3.95B | – | – |
| Third Quarter 2026 net premiums writtenGAAP | $3.27B | – | – |
| Third Quarter 2026 net premiums earnedGAAP | $3.21B | – | – |
| Third Quarter 2026 total revenuesGAAP | 3.74B | – | – |
| Third Quarter 2026 net investment incomeGAAP | 383.5M | – | – |
| Third Quarter 2026 net investment losses gainsGAAP | −18.30M | – | – |
| Third Quarter 2026 income before income taxGAAP | 574.3M | – | – |
| Third Quarter 2026 net income to common stockholdersGAAP | $446.0M | – | – |
| Third Quarter 2026 net income per diluted shareGAAP | $ 1.14 | – | – |
| Third Quarter 2026 net income per basic shareGAAP | $ 1.15 | – | – |
| Third Quarter 2026 operating incomenon-GAAP | 456.5M | – | – |
| Third Quarter 2026 operating income per diluted sharenon-GAAP | $ 1.17 | – | 6.4% |
| Third Quarter 2026 return on equityGAAP | 18.4 % | – | – |
| Third Quarter 2026 operating return on equitynon-GAAP | 18.8 % | – | – |
| Third Quarter 2026 consolidated loss ratioGAAP | 62.2 % | – | – |
| Third Quarter 2026 consolidated expense ratioGAAP | 28.6 % | – | – |
| Third Quarter 2026 consolidated GAAP combined ratioGAAP | 90.8 % | – | – |
| Third Quarter 2026 current accident year combined ratio before catastrophe lossesother | 88.1% | – | – |
| Third Quarter 2026 current accident year catastrophe lossesGAAP | $85.93M | – | – |
| Third Quarter 2026 cash flow from operationsGAAP | $731.3M | – | – |
| Nine Months 2026 gross premiums writtenGAAP | $11.88B | – | – |
| Nine Months 2026 net premiums writtenGAAP | $9.87B | – | – |
| Nine Months 2026 net premiums earnedGAAP | $9.52B | – | – |
| Nine Months 2026 total revenuesGAAP | 11.15B | – | – |
| Nine Months 2026 net investment incomeGAAP | 1.21B | – | – |
| Nine Months 2026 net investment losses gainsGAAP | −89.27M | – | – |
| Nine Months 2026 income before income taxGAAP | 1.77B | – | – |
| Nine Months 2026 net income to common stockholdersGAAP | $1.41B | – | – |
| Nine Months 2026 net income per diluted shareGAAP | $ 3.60 | – | – |
| Nine Months 2026 operating incomenon-GAAP | 1.47B | – | – |
| Nine Months 2026 operating income per diluted sharenon-GAAP | $ 3.73 | – | – |
| Nine Months 2026 return on equityGAAP | 19.4 % | – | – |
| Nine Months 2026 operating return on equitynon-GAAP | 20.2 % | – | – |
| Nine Months 2026 consolidated GAAP combined ratioGAAP | 90.5 % | – | – |
| Nine Months 2026 cash flow from operationsGAAP | $2.20B | – | – |
| Third Quarter 2026 core portfolio net investment incomeother | $369.1M | – | 12.0% |
| Third Quarter 2026 fixed-maturity securities incomeother | . | – | 10.3% |
| September 30, 2026 net invested assetsGAAP | $33.95B | – | – |
| September 30, 2026 total assetsGAAP | 45.68B | – | – |
| September 30, 2026 reserves for losses and loss expensesGAAP | 23.61B | – | – |
| September 30, 2026 senior notes and other debtGAAP | 1.83B | – | – |
| September 30, 2026 subordinated debenturesGAAP | 1.01B | – | – |
| September 30, 2026 common stockholders' equityGAAP | 9.61B | – | – |
| September 30, 2026 book value per shareGAAP | 25.87 | – | – |
| September 30, 2026 tangible book value per shareGAAP | 25.27 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Insurance, Third Quarter 2026 net premiums earnedGross premiums written were $ 3,560,309 (Amounts in thousands) and net premiums written were 2,899,016 (Amounts in thousands). The release stated Insurance segment gross and net premiums written grew 4.9% and 3.2%, respectively. | 2.86B | – | – |
| Reinsurance & Monoline Excess, Third Quarter 2026 net premiums earnedGross premiums written were $ 391,479 (Amounts in thousands) and net premiums written were 368,586 (Amounts in thousands). | 351.7M | – | – |
| Insurance, Nine Months 2026 net premiums earnedGross premiums written were $ 10,724,644 (Amounts in thousands) and net premiums written were 8,802,716 (Amounts in thousands). | 8.45B | – | – |
| Reinsurance & Monoline Excess, Nine Months 2026 net premiums earnedGross premiums written were $ 1,156,910 (Amounts in thousands) and net premiums written were 1,069,466 (Amounts in thousands). | 1.06B | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- During the nine months ended September 30, 2026, the Company repurchased 6,465,878 shares of its common stock for $435.1 million.
- During the three months ended September 30, 2026, the Company repurchased 309,508 shares of its common stock for $21.1 million.
- The Company returned a total of $728.6 million to shareholders year-to-date, which includes $435.1 million of share repurchases.
What drove it
- Pre-tax underwriting income for the Insurance segment grew 10.6% to $237.7 million.
- Quarterly net investment income grew to $383.5 million, driven by a core portfolio increase of 12.0%.
- Average rate increases excluding workers' compensation were approximately 4.0%.
- The current accident year combined ratio before catastrophe losses of 2.7 loss ratio points was 88.1%.
- Income from fixed-maturity securities increased 10.3% over the corresponding period a year ago.
- The total fixed-maturity securities portfolio had an average rating of AA- and an average duration of 3.3 years, including cash and cash equivalents and arbitrage trading account.
Concerns
- Third-quarter net income to common stockholders was $ 446,005 (Amounts in thousands), compared with $ 511,032 (Amounts in thousands) in the prior-year quarter.
- Third-quarter net investment losses were (18,305) (Amounts in thousands), compared with net investment gains of 78,960 (Amounts in thousands) in the prior-year quarter.
- Reinsurance & Monoline Excess third-quarter gross premiums written were $ 391,479 (Amounts in thousands), compared with $ 443,233 (Amounts in thousands) in the prior-year quarter.
- Reinsurance & Monoline Excess third-quarter GAAP combined ratio was 83.4 %, compared with 81.1 % in the prior-year quarter.
- Nine-month cash flow from operations was $ 2,199,237 (Amounts in thousands), compared with $ 2,587,484 (Amounts in thousands) in the prior-year period.
What to watch
- Average rate increases excluding workers' compensation of approximately 4.0%.
- The Insurance segment's current accident year combined ratio before catastrophe losses of 88.1% and catastrophe-loss experience.
- Net investment income contribution from the core portfolio and fixed-maturity securities.
- Reinsurance & Monoline Excess premium trends and underwriting ratios.
- The effect of after-tax unrealized investment losses of $928 million reflected in common stockholders' equity as of September 30, 2026.
Balance sheet and cash flow
- Cash flow from operations was $ 731,333 (Amounts in thousands) in the third quarter of 2026, compared with $ 1,139,860 (Amounts in thousands) in the third quarter of 2025.
- Cash flow from operations was $ 2,199,237 (Amounts in thousands) in the nine months of 2026, compared with $ 2,587,484 (Amounts in thousands) in the nine months of 2025.
- Net invested assets were $ 33,952,861 (Amounts in thousands) at September 30, 2026, compared with $ 33,173,381 (Amounts in thousands) at December 31, 2025.
- Cash and cash equivalents were $ 2,038,618 (Amounts in thousands), or 6.0 % of net invested assets, at September 30, 2026.
- Senior notes and other debt were 1,827,874 (Amounts in thousands) and subordinated debentures were 1,011,066 (Amounts in thousands) at September 30, 2026.
- After-tax unrealized investment losses reflected in common stockholders' equity were $928 million as of September 30, 2026, compared with $125 million as of December 31, 2025.
Analysis
W. R. Berkley reported third-quarter operating income of 456,541 (Amounts in thousands), compared with 440,198 (Amounts in thousands) a year earlier. Operating income per diluted share was $ 1.17, compared with $ 1.10, and the release stated that per-share operating income grew 6.4%. GAAP net income to common stockholders was $ 446,005 (Amounts in thousands), compared with $ 511,032 (Amounts in thousands), as third-quarter net investment losses of (18,305) (Amounts in thousands) contrasted with net investment gains of 78,960 (Amounts in thousands) in the prior-year quarter.
Underwriting remained profitable. The consolidated GAAP combined ratio was 90.8 %, versus 90.9 % a year earlier, while the current accident year combined ratio before catastrophe losses was 88.1%. The Insurance segment generated gross premiums written of $ 3,560,309 (Amounts in thousands), and the company stated that its gross and net premiums written grew 4.9% and 3.2%, respectively. Insurance pre-tax underwriting income grew 10.6% to $237.7 million. By contrast, Reinsurance & Monoline Excess gross premiums written were $ 391,479 (Amounts in thousands), below $ 443,233 (Amounts in thousands) in the prior-year quarter, and its GAAP combined ratio was 83.4 %, versus 81.1 %.
Investment income provided a material earnings contribution. Net investment income was 383,537 (Amounts in thousands), compared with 351,238 (Amounts in thousands), with core portfolio income of $ 369,122 (Amounts in thousands) compared with $ 329,508 (Amounts in thousands). The release attributed the result to a 12.0% core portfolio increase and said fixed-maturity securities income increased 10.3%. At September 30, 2026, net invested assets were $ 33,952,861 (Amounts in thousands), and total fixed-maturity securities had an average rating of AA- and an average duration of 3.3 years, including cash and cash equivalents and arbitrage trading account.
Capital return remained substantial, with $728.6 million returned to shareholders year-to-date, including $435.1 million of repurchases. The company repurchased 6,465,878 shares for $435.1 million during the nine months ended September 30, 2026. Common stockholders' equity was 9,610,213 (Amounts in thousands), versus 9,700,818 (Amounts in thousands) at December 31, 2025, while after-tax unrealized investment losses reflected in equity were $928 million at September 30, 2026. No quantitative forward earnings, premium, margin, expense, or capital-management guidance was provided in the release.
Management, verbatim
The Company delivered another excellent quarter, generating an annualized 18.8% operating return on beginning-of-year stockholders’ equity. These results demonstrate the continuing strength in how we manage our specialty insurance underwriting, as well as our investment portfolio.
W. Robert Berkley, Jr., chairman, chief executive officer, and president
Our underwriting results have consistently been outstanding due to our unwavering commitment to rate adequacy and attention to terms and conditions.
W. Robert Berkley, Jr., chairman, chief executive officer, and president
Our disciplined approach to capital management remains unchanged. We returned a total of $728.6 million to shareholders year-to-date, which includes $435.1 million of share repurchases, while preserving substantial flexibility to support future opportunities.
W. Robert Berkley, Jr., chairman, chief executive officer, and president
Not in the filing
stated, not guessed- Quantitative forward guidance
- Previous-release outlook and prior-guidance comparison
- Free cash flow
- Dividend amount or dividend declaration
- Third-quarter and nine-month free cash flow
- Gross margin
- Tax rate
- Prior-quarter comparisons for reported income statement and operating metrics
- A reported dollar value for third-quarter fixed-maturity securities income
- Segment revenue as separately labeled revenue
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.