W.R. Berkley Earnings: Holding Steady Amid Industry Tailwinds

Narrow-moat W.R. Berkley produced another strong quarter as it continues to benefit from favorable industry pricing and higher interest rates. The annualized return on equity of 20% is well above the company’s historical average but in line with recent results. We will maintain our $49 fair value estimate and see the shares as overvalued. While we appreciate the favorable near-term outlook, we see insurance as an inherently mean-reverting industry and think the market is overly focused on the tailwinds that W.R. Berkley and its peers are currently enjoying.