01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
W.
R. Berkley Corporation reported first-quarter 2026 net income to common stockholders of $515.2 milliona, or $1.31 per diluted share, compared with $417.6 million, or $1.04 per diluted share, in the first quarter of 2025. Total revenues rose to $3.69 billion from $3.55 billion.
Net premiums earned increased to $3.12 billionb from $3.01 billion, and net investment income grew to $404.3 million from $360.3 million. The consolidated GAAP combined ratio was 90.7% compared with 90.9% a year earlier, with the Insurance segment at 92.2% and Reinsurance & Monoline Excess at 78.6%. The company attributed the earnings increase mainly to higher net investment income, a lower tax expense driven by the repeal of certain undiscounted property-casualty loss deductions, a favorable foreign currency result, and higher non-insurance profits, partially offset by net investment losses.
Gross premiums written were $3.79 billionc, up 3%, with the Insurance segment up 5% and Reinsurance & Monoline Excess down 9%. Average renewal premium rates for insurance and facultative reinsurance rose 6.6%, or 7.2% excluding workers' compensation. Management reported adverse prior-year reserve development of $8 million in the Insurance segment, largely offset by $9 million of favorable development in Reinsurance & Monoline Excess, with adverse other liability development driven by umbrella and excess liability claims tied in part to auto exposures and social inflation.
On the balance sheet, total assets reached $44.32 billiond and total stockholders' equity was $9.74 billion at March 31, 2026. The company repurchased 4,471,634 shares for $302 million during the quarter and paid $0.09 per share in dividends. In April 2026, a court issued a judgment principally resolving a lawsuit by a subsidiary against certain reinsurers in the subsidiary's favor, with the award amount to be determined by the court.
02—Key points
Key Highlights
- Net income to common stockholders rose to $515.2 million ($1.31 per diluted share) from $417.6 million ($1.04 per diluted share) in Q1 2025.
- Net premiums earned grew to $3.12 billion from $3.01 billion, and gross premiums written rose 3% to $3.79 billion.
- Net investment income increased to $404.3 million from $360.3 million, with the average annualized yield on fixed maturity securities at 4.9% in both periods.
- Consolidated GAAP combined ratio was 90.7% versus 90.9% in the prior-year quarter; Reinsurance & Monoline Excess improved to 78.6% from 85.4%.
- Income tax expense fell to $100.5 million from $121.3 million, with the effective tax rate at 16.3% versus 22.5%, reflecting the repeal of Section 847 benefits partially offset by UK deferred tax charges.
- The company repurchased 4,471,634 shares for $302 million in the quarter, and the repurchase authorization was increased to 25,000,000 shares on January 8, 2026.
- Net realized and unrealized investment losses of $15.8 million compared with net gains of $16.4 million in 2025, mainly from equity securities and real estate.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $3.69B$3.55B | +4.0% |
| Interest Expense | $31.71M$31.73M | −0.1% |
| Net Income | $515.22M$417.57M | +23.4% |
| EPS (Basic) | $1.31$1.05 | +24.8% |
| EPS (Diluted) | $1.31$1.04 | +26.0% |
| Shares Outstanding (Basic) | 392.26M396.93M | −1.2% |
| Shares Outstanding (Diluted) | 394.78M399.82M | −1.3% |
05—Questions
Frequently Asked Questions
What drove the increase in net income this quarter?
The filing attributes the $97 million increase mainly to an after-tax increase of $37 million in net investment income, a $33 million decrease in tax expense, a $30 million after-tax increase in foreign currency gains, a $15 million after-tax increase in non-insurance business profits, and a $14 million after-tax increase in underwriting income. These were partially offset by a $27 million after-tax increase in net investment losses, mainly from equity securities.
How did underwriting performance change by segment?
The consolidated loss ratio improved to 62.1% from 63.1%, while the expense ratio rose to 28.6% from 27.8%, leaving the consolidated GAAP combined ratio at 90.7% versus 90.9%. The Insurance segment's combined ratio rose to 92.2% from 91.7%, while Reinsurance & Monoline Excess improved to 78.6% from 85.4%.
What reserve development did the company report?
Net favorable prior-year development was $1 million after premium offsets. Within that, the Insurance segment had $8 million of adverse development, driven mainly by other liability claims tied to umbrella and excess liability and auto exposures, and Reinsurance & Monoline Excess had $9 million of favorable development, mainly in non-proportional assumed property.
How much did the company return to shareholders and what is its equity position?
The company paid $33.7 million in cash dividends and repurchased $302 million of common stock during the quarter. Total stockholders' equity was $9.74 billion at March 31, 2026, and stockholders' equity per outstanding share was $26.13.
Were there any notable legal or regulatory developments?
On April 23, 2026, a court issued a judgment principally resolving in favor of a subsidiary its lawsuit against certain reinsurers, which was filed December 22, 2023, to recover in excess of $90 million in losses. The amount of the award will be determined by the court, and the company believes the award will not be material to its financial condition.
06—Continue