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Valued at a market cap of $22.1 billion, W. R. Berkley Corporation (WRB) is a prominent player in the insurance and reinsurance industry. Headquartered in Greenwich, Connecticut, the company operates through a range of specialized insurance businesses, offering property and casualty insurance, reinsurance, and risk management solutions. The company is set to release its Q4 earnings on Wednesday, Jan. 22.
Ahead of the event, analysts expect W. R. Berkley will report a profit of $0.95 per share, down 2.1% from $0.97 per share in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $0.93 per share for the last reported quarter surpassed the consensus estimate by 1.1%. W.R. Berkley's earnings beat was driven by strong underwriting and investment income.
For fiscal 2024, analysts expect W.R. Berkley to report EPS of $3.95, up 20.4% from $3.28 in fiscal 2023. Looking ahead, the company’s bottom line is projected to surge 9.6% year over year to $4.33 per share in fiscal 2025.
WRB stock has rallied 20.6% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 23.7% gains and the Financial Select Sector SPDR Fund’s (XLF) 27.7% returns during the same period.
W. R. Berkley's slight underperformance may stem from underwriting challenges, higher-than-expected claims, or exposure to catastrophic losses. Additionally, competitive pressures, lower investment returns, or broader economic factors such as inflation could have impacted its profitability.
The company's shares dropped 4.1% following its mixed Q3 earnings report on Oct. 21. Its revenue grew 12.2% year over year to $3.4 billion narrowly missing consensus expectations. Net investment income increased by 19.5% annually to $323.8 million.
The consensus opinion on WRB stock is moderately bullish, with an overall “Moderate Buy” rating. Of the 16 analysts covering the stock, eight advise a “Strong Buy” rating, seven suggest a “Hold,” and one indicates a “Strong Sell.”
WRB's average analyst price target is $65.14, indicating a potential upside of 12.3% from the current levels.
