W.R. Berkley Corporation WRB is expected to register an improvement in both top and bottom lines when it reports first-quarter 2026 results on April 21, after market close.
The Zacks Consensus Estimate for WRB’s first-quarter revenues is pegged at $3.72 billion, indicating 5.2% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $1.13 per share. The Zacks Consensus Estimate for WRB’s first-quarter earnings has moved down 0.8% in the past 30 days. The estimate suggests a year-over-year increase of 11.8%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for W.R. Berkley this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold). This is not the case, as you can see below:
Earnings ESP: W.R. Berkley has an Earnings ESP of -3.10%. This is because the Most Accurate Estimate of $1.10 is pegged higher than the Zacks Consensus Estimate of $1.13. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
W.R. Berkley Corporation Price and EPS Surprise
W.R. Berkley Corporation price-eps-surprise | W.R. Berkley Corporation Quote
Zacks Rank: W.R. Berkley currently carries a Zacks Rank #3 (Hold).
Factors to Consider
Gross premiums written in the Insurance segment are likely to have benefited from the well-performing other liability, short-tail lines, professional liability, workers' compensation and commercial auto. We expect the metric to be $3.4 billion, indicating an increase of 5% from the year-ago reported number.
The Reinsurance & Monoline Excess segment’s gross premiums written are expected to have improved, banking on well-performing monoline excess and property reinsurance. We expect the metric to be $$494.2 million, suggesting a rise of 5.8% from the year-ago reported number.
The Zacks Consensus Estimate for first-quarter 2026 premiums earned is pegged at $3.2 billion, indicating an increase of 6% from the year-ago reported quarter. Our estimate for the metric is pegged at $3.2 billion, indicating a 5% upside from the year-ago reported number.
The increase in income from fixed-maturity securities, investment funds, arbitrage trading accounts, real estate and equity securities is likely to have aided net investment income. The Zacks Consensus Estimate for first-quarter 2026 net investment income is pegged at $389 million, indicating an increase of 8% from the year-ago reported quarter. Our estimate for the metric is pegged at $387 million, indicating a 7.4% upside from the year-ago reported number.
Improvement in premiums, coupled with higher investment income, is likely to have aided the top line in the to-be-reported quarter.
Higher losses and loss expenses, other operating costs and expenses, and expenses from non-insurance businesses are likely to increase costs. We expect total expenses to increase 4.5% to $3.1 billion.
Higher net premiums earned, as well as operational efficiencies arising from investments in technology, business process outsourcing, and a non-recurring benefit for commission-related accruals, are likely to have contributed to the improved expense ratio. We estimate the metric to be 28.31 in the to-be-reported quarter.
Better pricing and increased exposure, coupled with prudent underwriting, are expected to have aided underwriting profitability, which, in turn, is likely to have led to an improvement in the combined ratio. The Zacks Consensus Estimate was 91, while our estimate for the combined ratio is pegged at 90.73.
Continued share buybacks are likely to have provided additional support to the bottom line.
Stocks to Consider
Here are three P&C insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Arch Capital Group Ltd. ACGL has an Earnings ESP of +0.97% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $2.46, indicating a year-over-year increase of 59.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACGL’s earnings beat estimates in each of the last four reported quarters.
RenaissanceRe Holdings Ltd. RNR has an Earnings ESP of +4.62% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $11.36, indicating a year-over-year increase of 862.42%.
RNR’s earnings beat estimates in three of the last four reported quarters and missed in one.
The Allstate Corporation ALL has an Earnings ESP of +2.64% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $7.80, indicating a year-over-year increase of 120.9%.
ALL’s earnings beat estimates in each of the last four reported quarters.
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W.R. Berkley Corporation (WRB): Free Stock Analysis Report
RenaissanceRe Holdings Ltd. (RNR): Free Stock Analysis Report
The Allstate Corporation (ALL): Free Stock Analysis Report
Arch Capital Group Ltd. (ACGL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).