2Q26 Results: Beat on CAT & NII; Balancing Rate & Growth

研报英文原文证据摘录

2Q26 Results: Beat on CAT & NII; Balancing Rate & Growth

USA | P&C Insurance/Insurtech

W. R. Berkley EquityJulyResearch21, 2026

ESTIMATE CHANGE2Q26 Results: Beat on CAT & NII; Balancing Rate

RATING HOLD& Growth

PRICE $72.73^

2Q26 Op EPS of $1.27 beat JEF/Cons $1.06/1.08 on NII, lower CAT and

stronger underlying LRs in Reinsurance (Insurance in line). Market conditions PRICE TARGET | % TO PT $70.00 | -4%

are competitive though attractive growth opportunities remain in certain liability 52W HIGH-LOW $78.96 - $62.87

lines in Insurance. A willingness to sacrifice rate in certain lines gives us more FLOAT (%) | ADV MM (USD) 60.8% | 153.24

confidence in MSD growth though we expect it to lead to higher underlying LRs MARKET CAP $27.1B

over time. Remain Hold rated. PT $70 (0% ETR). TICKER WRB ^Prior trading day's closing price unless otherwise

noted.

We increase our '26E EPS by 5% to $4.85 for the beat while our '27E/'28E EPS increase 1%/2%

to $4.85/$5.20. Our higher '27E/'28E estimates reflect stronger Insurance growth, increased

FY (Dec) CHANGE TO JEFe JEF vs CONS

buybacks, and NII.

2026 2027 2026 2027

Market conditions: Compared to 1Q26, management's market commentary was largely REV NM NM NM +1%

unchanged, though it appeared incrementally more willing to sacrifice some rate in exchange EPS +5% +1% +4% +1%

for growth where margins remain attractive. Notably Insurance renewal rate excluding workers'

compensation meaningfully decelerated 340bps QoQ to 3.8% (largest one quarter move in history), 2026 ($) Q1A Q2A Q3 Q4 FY

although the company stressed the slowdown was intentional and reflected efforts to optimize EPS 1.30 1.27 1.09 1.19 4.85

the balance between rate and growth. We estimate rate including WC to be ~3%, which remains PREV 1.06 1.06 1.18 4.60

above TRV's 1.9%.