W.R. Berkley Corporation operates as commercial lines writers primarily in the United States. The company operates in three segments: Insurance-Domestic, Insurance-International, and Reinsurance-Global. The company was founded in 1967 and is based in Greenwich, Connecticut.
WRB Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Berkley W R Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Berkley W R Corp ranked in the 57th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 69.5%. The most interesting components of our discounted cash flow analysis for Berkley W R Corp ended up being:
The company's balance sheet shows it gets 79% of its capital from equity, and 21% of its capital from debt. Notably, its equity weight is greater than 62.96% of US equities in the Financial Services sector yielding a positive free cash flow.
Berkley W R Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 21.19% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Berkley W R Corp? See BSIG, UIHC, CUII, MKL, and HNNA.
W. R. Berkley Corporation (NYSE: WRB) (the "Company") announced today that it priced an offering of $250 million aggregate principal amount of 4.25% Subordinated Debentures due 2060 (the "Debentures"). The offering is expected to close on September 21, 2020, subject to customary closing conditions. The Company intends to apply to list the Debentures on the New York Stock Exchange under the symbol "WRB PR G." If approved for listing, the Company expects trading of the Debentures on the New York Stock Exchange to commence within 30 days after they are first issued. The net proceeds of the offering will be used to redeem the remaining $150 million aggregate principal amount of 5.625% Subordinated Debentures due 2053, with the remaining balance for general corp...
W. R. Berkley Corporation (NYSE: WRB) today announced the appointment of David R. Lockhart as president of Carolina Casualty, a Berkley Company. He succeeds David A. Dunn, who will continue to support Mr. Lockhart and the Carolina Casualty team throughout the transition. Jason R. Lewis has been appointed president of Gemini Transportation Underwriters, a Berkley Company, succeeding Mr. Lockhart. The appointments are effective immediately.
AM Best has affirmed the Long-Term Issue Credit Rating (Long-Term IR) of "a-" on the $470 million 4% senior unsecured notes, due May 2050, issued by W. R. Berkley Corporation (WRB) (Greenwich, CT) [NYSE:WRB]. The company has announced it will be issuing an additional $170 million of senior unsecured notes under that offering, bringing the total to $470 million. The outlook of the Credit Rating (rating) is stable.
W.R. Berkley (WRB) has earned a good reputation, with long-term core earnings and book value growth trends well above the average, as well as a strong underwriting history. Even so, while I can understand a “flight to safety” preference for this more specialty-oriented insurer, it’s tough to reconcile the current...
Stephen Simpson, CFA on Seeking Alpha | September 2, 2020