Quarterly Pre-Tax Underwriting Income Grew 14.9% to a Record
W. R. Berkley Corporation said it generated record pre-tax underwriting income in the fourth quarter and for the full year 2025, as the commercial-lines carrier reported a 21.4% return on equity for the quarter and 21.2% for the year.
The company, which reports results in an Insurance segment and a Reinsurance & Monoline Excess segment, also said it returned $970.5 million to shareholders in 2025 through special and regular dividends plus share repurchases.
Fourth-quarter snapshot
Berkley said fourth-quarter 2025 results included:
- Return on equity: 21.4%.
- Pre-tax underwriting income: $338 million, up 14.9% (company record for the quarter).
- Operating income: $450 million, up 9.5% (company record).
- Combined ratio (reported): 89.4%; current accident-year combined ratio before catastrophe losses (1.5 loss ratio points) was 87.9%.
- Average rate increases (ex-workers’ comp): about 7.1%.
- Capital returned to shareholders: $608.3 million (special dividends $377.9 million, share repurchases $196.4 million, regular dividends $34.0 million).
On a GAAP basis, Berkley reported fourth-quarter net income to common stockholders of $449.5 million, or $1.13 per diluted share, and gross premiums written of $3.61 billion.
Full-year 2025 results
For 2025, Berkley reported:
- Return on equity: 21.2%. …
- Book value per share growth: 26.7%, before dividends and share repurchases.
- Gross premiums written / net premiums written: $15.1 billion / $12.7 billion (both records).
- Pre-tax underwriting income: $1.2 billion (record).
- Net investment income: up 7.2% to a record $1.4 billion.
- Capital returned to shareholders: $970.5 million (special dividends $567.6 million, share repurchases $270.2 million, regular dividends $132.7 million).
- Average rate increases (ex-workers’ comp): about 7.6%.
Berkley reported full-year net income to common stockholders of $1.78 billion (diluted EPS $4.45) and operating income of $1.73 billion (operating diluted EPS $4.33).
Underwriting results by segment
Berkley reported these GAAP combined ratios:
- Insurance segment: 90.6% in the fourth quarter and 91.7% for the year.
- Reinsurance & Monoline Excess segment: 81.0% in the fourth quarter and 83.7% for the year.
The company also broke out net premiums written across several major lines within its Insurance segment, including “Other liability,” “Short-tail lines,” “Auto,” “Workers’ compensation,” and “Professional liability.”
Insurer Returns Nearly $1.0 Billion to Shareholders
In prepared remarks, Berkley pointed to underwriting and investment results, book value growth, and capital management.
“The fourth quarter marked another period of strong results, with a 21.4% return on beginning-of-year stockholders’ equity that culminated in a 21.2% return for the full year. The Company’s performance reflected record underwriting income and net income for the fifth consecutive year, and record investment income for the fourth. Book value per-share rose 5.2% in the quarter and 26.7% for the year, before returning $608 million and $971 million to stockholders, respectively, through dividends and share repurchases.”
“Full‑year net premiums written increased to a record $12.7 billion. Our focus on profitable growth by maintaining rate adequacy and underwriting discipline resulted in strong combined ratios of 89.4% for the quarter and 90.7% for the year. We expect that the margins available to us will continue to be excellent, with select areas of opportunity persisting in 2026.”
“In 2025, we repurchased over four million shares, including 2.9 million in the fourth quarter, and paid the largest special dividends in our history. Our priority remains long-term value creation, and we will continue to return excess capital to shareholders in a disciplined and thoughtful manner as strong earnings rapidly generate additional excess capital.”
Balance sheet and investments
At year-end 2025, Berkley reported net invested assets of $33.17 billion, total assets of $44.07 billion, and reserves for losses and loss expenses of $22.21 billion.
The company reported book value per share of $25.72 (tangible book value per share $25.11) at Dec. 31, 2025, compared with $22.09 and $21.46, respectively, at Dec. 31, 2024.
Berkley’s investment-portfolio snapshot showed fixed-maturity securities of $25.05 billion (75.4% of net invested assets), and said the fixed-maturity portfolio had an average rating of AA- and an average duration of 3.0 years (including cash and cash equivalents).
