W.R. Berkley stock price target lowered to $72 at KBW on combined ratio miss

Published 22/07/2025, 14:56
W.R. Berkley stock price target lowered to $72 at KBW on combined ratio miss

Investing.com - Keefe, Bruyette & Woods lowered its price target on W.R. Berkley (NYSE:WRB) to $72.00 from $74.00 on Tuesday, while maintaining a Market Perform rating on the insurance company’s stock.

The price target reduction follows W.R. Berkley’s recent quarterly results, which showed operating earnings per share of $1.05, beating the Street’s consensus estimate of $1.03 and KBW’s projection of $1.02.

The earnings beat was primarily driven by stronger-than-expected net investment income, insurance service income, and foreign exchange results, which are now excluded from operating income calculations.

These positive factors were offset by misses on the core loss ratio, catastrophe loss ratio, and expense ratio, with KBW specifically citing the core combined ratio miss as a key factor in its decision to lower the price target.

KBW reduced its 2025 earnings per share estimate for W.R. Berkley to $4.20 from $4.30, while maintaining its 2026 and 2027 estimates at $4.95 and $5.35 respectively, incorporating slower premium growth and higher core loss ratio assumptions.

In other recent news, W.R. Berkley Corporation reported its second-quarter earnings for 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $1.05, slightly higher than the projected $1.03. Revenue for the quarter was in line with forecasts, reaching $3.1 billion, which marks a record for net premiums earned. Despite this positive earnings report, investor concerns were noted, particularly regarding competitive pressures in the property market. These concerns were discussed during the company’s earnings call. The stock experienced a decline, but specific stock price movements are not a focus here. The company’s performance and market dynamics remain under scrutiny by investors and analysts alike.

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