01—Abstract
Summary
Summary of the 10-Q filed November 2, 2026. Cited figures are marked; the original filing is the authoritative source.
W.
R. Berkley Corporation reported net income to common stockholders of $446.0 milliona for the third quarter of 2026, compared with $511.0 million in the third quarter of 2025, and $1.41 billion for the nine months ended September 30, 2026, versus $1.33 billion a year earlier. Diluted EPS was $1.14 for the quarter (versus $1.28) and $3.60 for the nine months (versus $3.32).
Total revenues for the nine months were $11.15 billionb, and net premiums written were $9.87 billion, with the consolidated GAAP combined ratio at 90.5% for the nine months (91.1% in 2025). The quarterly decline was driven mainly by a $76 million after-tax increase in net investment losses, primarily from lower unrealized gains on equity securities, partially offset by higher net investment income, which rose to $383.5 million for the quarter from $351.2 million. Balance sheet and capital activity show total assets of $45.68 billion and stockholders' equity of $9.61 billion at September 30, 2026, down from $9.70 billion at year-end 2025.
Accumulated other comprehensive loss widened to $1.25 billionc from $451 million, reflecting a $803 million after-tax change in unrealized investment losses for the nine months. The company repurchased 6,465,878 shares for $435 million in the nine months and paid $293 million in dividends. Operating cash flow was $2.20 billion for the nine months, down from $2.59 billion, which the filing attributes to increased loss and loss expense payments and income tax payments.
The filing also notes a tax benefit from the repeal of undiscounted property-casualty loss deductions under Internal Revenue Code Section 847, which lowered the nine-month effective tax rate to 19.8% from 22.2%. Net favorable prior year reserve development was $4 milliond for the nine months, with adverse development of $22 million in the Insurance segment offset by $26 million of favorable development in Reinsurance & Monoline Excess.
02—Key points
Key Highlights
- Q3 2026 net income to common stockholders was $446.0 million ($1.14 diluted EPS), down from $511.0 million ($1.28) in Q3 2025, mainly due to an after-tax increase in net investment losses of $76 million.
- Nine-month net income to common stockholders rose to $1.41 billion ($3.60 diluted EPS) from $1.33 billion ($3.32), helped by higher net investment income of $1.21 billion, up from $1.09 billion.
- Consolidated GAAP combined ratio improved to 90.5% for the nine months from 91.1%, with the Reinsurance & Monoline Excess segment at 80.4% versus 84.6%.
- Gross premiums written rose 3% to $11.88 billion for the nine months, while average renewal premium rates for insurance and facultative reinsurance increased 4.5%.
- Accumulated other comprehensive loss grew to $1.25 billion from $451 million at year-end 2025, driven by unrealized investment losses, and total stockholders' equity fell to $9.61 billion.
- The company repurchased $435 million of common stock and paid $293 million in dividends in the nine months, while holding $2.11 billion in cash and cash equivalents.
- Net reserves for losses and loss expenses reached $20.09 billion, and the filing reports adverse prior year development of $22 million in the Insurance segment, offset by favorable development in Reinsurance & Monoline Excess.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 2, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $3.74B$3.77B | −0.8% |
| Interest Expense | $31.61M$31.76M | −0.5% |
| Net Income | $446.00M$511.03M | −12.7% |
| EPS (Basic) | $1.15$1.29 | −10.9% |
| EPS (Diluted) | $1.14$1.28 | −10.9% |
| Shares Outstanding (Basic) | 388.75M397.22M | −2.1% |
| Shares Outstanding (Diluted) | 391.34M400.20M | −2.2% |
05—Questions
Frequently Asked Questions
Why did net income decline in the third quarter of 2026 even though net investment income rose?
Net income to common stockholders fell to $446.0 million from $511.0 million. The filing attributes the $65 million decrease primarily to an after-tax increase in net investment losses of $76 million, mainly from a change in unrealized gains on equity securities. Net investment income rose to $383.5 million from $351.2 million, partially offsetting this decline.
How did the company's equity and balance sheet change during the first nine months of 2026?
Total stockholders' equity decreased to $9.61 billion at September 30, 2026 from $9.70 billion at December 31, 2025. The main drivers in the filing include share repurchases of $435 million, dividends of $293 million, and a larger accumulated other comprehensive loss of $1.25 billion, which reflects a $803 million after-tax change in unrealized investment losses. Retained earnings increased to $14.46 billion.
What drove the lower effective tax rate in the first nine months of 2026?
The effective income tax rate was 19.8% for the nine months ended September 30, 2026, compared with 22.2% a year earlier. The filing states this was primarily due to the repeal of undiscounted property-casualty loss deductions and special estimated payments formerly available under Internal Revenue Code Section 847, partially offset by deferred tax charges in the United Kingdom.
Why did operating cash flow decline in the first nine months of 2026?
Net cash from operating activities decreased to $2.20 billion from $2.59 billion. The filing attributes this primarily to increased loss and loss expense payments and income tax payments, partially offset by increased premium receipts. Income tax payments were $413 million for the nine months, compared with $247 million a year earlier.
How are the company's reserves developing and what is the outlook for prior-year claims?
Net reserves for losses and loss expenses were $20.09 billion at September 30, 2026. Net favorable prior year development was $4 million for the nine months, comprising $22 million of adverse development in the Insurance segment, driven by other liability and auto liability, and $26 million of favorable development in Reinsurance & Monoline Excess. The filing notes that auto-related claims are being affected by social inflation.
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