W.R. Berkley CorporationWRB

Morningstar Rating

Stock Research and Analysis

by Drew Woodbury

W.R. Berkley owns a collection of specialized insurance companies. Its decentralized operating structure of specialty insurance businesses are designed to address specific risks where the company has an underwriting advantage. This structure, along Read more

Bulls Say

The company's decentralized operating structure allows Berkley to develop expertise in a number of profitable niche fields.

Berkley has demonstrated the foresight to enter and exit insurance lines as market opportunities wax and wane.

With very minimal exposure to catastrophe risks, Berkley's results are likely to be less volatile than some of the firm's peers'.

If price improvements in the property-casualty insurance markets materialize, Berkley's returns could improve. Read more

Bears Say

Given his importance to the culture and dynamics of the firm, succession for William Berkley may have a negative impact on the company's results. He is now in his mid-60s.

The company has suffered write-downs in its investment portfolio because of Fannie Mae FNM and Freddie Mac FRE preferred shares and its investment funds. Future losses are possible and difficult to estimate with precision.

Berkley needs to manage the ebbs and flows of the cyclical insurance market. Read more

Strategy

W.R. Berkley targets insurance lines where it believes pricing is the most advantageous and has shown its willingness to exit less profitable lines. It is willing to underwrite risks it deems justified Read more

Management

William Berkley has been chairman and CEO of the company that bears his name since its formation in 1967. Berkley is firmly in control, but he views his position as an owner of the company rather than an executive. At the end of 2008, he held more than Read more

Profile

W.R. Berkley is an insurance holding company with a host of subsidiaries that primarily write commercial casualty insurance. The firm specializes in niche products that Read more

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