Analyst Note| Brett Horn, CFA |
W.R. Berkley reported a strong third quarter, with an annualized return on equity of 17% supporting our narrow moat rating for the company. While a harder pricing market is lifting results for most commercial property and casualty operators, we believe relatively disciplined franchises such as W.R. Berkley will benefit disproportionally. Additionally, management’s relative aversion to catastrophe loss exposure is paying dividends. The company is tracking a bit ahead of our full-year expectations, but the difference is not enough to materially affect our $68 fair value estimate, which we will maintain.