Earnings call transcript: W. R. Berkley tops EPS in Q3 2026 but misses revenue

W. R. Berkley reported Q3 2026 operating earnings of $1.17 per share, surpassing Wall Street's estimate of $1.15, while revenue totaled $3.74 billion, falling short of the $3.82 billion forecast. Shares declined by 1.78% in regular trading and an additional 1.69% after hours, indicating investors were more focused on the sales shortfall than the modest profit increase.

Operating earnings climbed to $456 million, or $1.17 per share, driven by robust underwriting and investment results. Revenue lagged expectations by approximately 2.1%, despite underwriting profit reaching a quarterly record. The company's annualized operating return on equity reached 18.8% for the quarter and over 20% year-to-date.

Net investment income expanded as higher interest rates enhanced returns on the portfolio. Management anticipates continued mid-single-digit growth in the insurance business, while reinsurance is projected to decline. The insurance segment showed strength with gross premiums written increasing 4.9% to a quarterly record of $3.6 billion and net premiums written rising 3.2% to a record $2.9 billion.

Reinsurance and monoline excess remained profitable but are being reduced due to competitive pressures. Despite a strong operating quarter, the mixed results of a modest profit beat and a revenue miss resulted in muted market response.