Is W. R. Berkley Stock Outperforming the S&P 500?
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W. R. Berkley Corporation (WRB), headquartered in Greenwich, Connecticut, is an insurance holding company that operates as a commercial line writer. Valued at $27.1 billion by market cap, the company offers property casualty insurance and reinsurance products.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and WRB perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the insurance industry. W. R. Berkley stands out through its specialty focus and underwriting discipline, especially in the Excess & Surplus (E&S) insurance market, which gives it flexibility to price uniquely and avoid commoditization. Its decentralized structure, with over 50 niche insurance businesses each focused on specific products, industries, or regions, allows quick local decision-making and responsiveness to changing risk conditions.
WRB is currently trading 4.3% below its 52-week high of $76.38, achieved on Mar. 28. Over the past three months, WRB stock gained marginally, trailing the S&P 500 Index ($SPX), which has returned 10.3% over the same time frame.
However, the stock has shown an impressive long-term rally. Shares of WRB rose 24.9% on a YTD basis and climbed 25.8% over the past 52 weeks, outperforming $SPX’s YTD gains of 12.2% and 17.1% returns over the last year.
To confirm the bullish trend, WRB has been trading above its 200-day moving average over the past year, and has remained above its 50-day moving average since mid-August.
On July 21, W. R. Berkley posted stronger-than-expected Q2 results, and its shares rose 1.1% in the following trading session. Total revenue climbed 10.8% year-over-year to $3.7 billion, topping estimates by 1.8%, driven by robust premium growth that lifted net premiums written to a record $3.4 billion. Adjusted EPS increased 2.9% to $1.05, also edging past consensus expectations by 1.9%.
WRB’s rival, Cincinnati Financial Corporation (CINF) shares lagged behind the stock, with a 7.5% gain on a YTD basis and a 13.5% uptick over the past 52 weeks.
The stock has a consensus “Moderate Buy” rating from the 19 analysts covering it, and the mean price target of $73.75 indicates a marginal premium from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.