Since July 2020, the S&P 500 has delivered a total return of 96.5%. But one standout stock has nearly doubled the market - over the past five years, W. R. Berkley has surged 177% to $71.14 per share. Its momentum hasn’t stopped as it’s also gained 25.5% in the last six months, beating the S&P by 18%.
Following the strength, is WRB a buy right now? Or is the market overestimating its value? Find out in our full research report, it’s free.
Why Is W. R. Berkley a Good Business?
Founded in 1967 and operating through more than 50 specialized insurance units across the globe, W. R. Berkley (NYSE: WRB) underwrites commercial insurance and reinsurance through specialized subsidiaries serving industries from healthcare to construction to transportation.
1. Net Premiums Earned Skyrockets, Fueling Growth Opportunities
Markets consistently prioritize net premiums earned growth over investment and fee income, recognizing its superior quality as a core indicator of the company’s underwriting success and market penetration.
W. R. Berkley’s net premiums earned has grown at a 13.6% annualized rate over the last four years, better than the broader insurance industry.
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
W. R. Berkley’s EPS grew at an astounding 25.1% compounded annual growth rate over the last five years, higher than its 12.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Projected BVPS Growth Is Remarkable
The key to book value per share (BVPS) growth is an insurer’s ability to earn underwriting profits while generating strong returns on its float - Warren Buffet’s secret sauce.
Over the next 12 months, Consensus estimates call for W. R. Berkley’s BVPS to grow by 26.6% to $25.22, elite growth rate.
Final Judgment
These are just a few reasons why we think W. R. Berkley is a great business, and with its shares topping the market in recent months, the stock trades at 2.7× forward P/B (or $71.14 per share). Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
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