Oct 19, 2026 earnings call — Quarterly results, underwriting and investment strength
Operating earnings were $456 million for the quarter, driven by record underwriting profit of $296 million and strong investment income.
Revenue $3.7B (est $3.8B) · EPS $1.17 (est $1.15)
Key quotes
"some of the activity that we are doing on the intake side is allowing us to become more efficient to the tune of 20% plus."
"I think it goes without saying it was another strong quarter for us, but that is not really where I wanted to focus my comments at the moment."
"Pretax net investment income increased to $384 million in the current quarter driven by growth in the core portfolio of 12%."
Analyst Q&A 11
loss trends and reinsurance pricing
Q (Rob Cox · Goldman Sachs): He asked for more detail on core loss ratio and early thoughts on design loss ratios for next year. He also asked about reinsurance ROEs and how to think about property rate adequacy.
A: Management said loss trends are easing in many lines but auto remains an exception and it is too early to declare victory. They noted non-cat property ran well and liability lines showed incremental comfort. On reinsurance, broad commentary expects rates to be off 10% to 20% and the company buys more reinsurance than it sells, so it has a hedge.
"So that is something, Robert, that we are taking into account." — William Robert Berkley
price vs growth and reserve drivers
Q (Elyse Greenspan · Wells Fargo): She asked whether their view on giving up price for growth has changed since last quarter. She also asked which lines or years drove reserve development in the quarter.
A: Management said their view on price versus growth has not changed; they analyze rate need by product and territory and see pockets that are attractive, with commercial property getting tougher and liability lines offering opportunity. They said the reserve development in the quarter was primarily driven by commercial auto in both primary and excess, with some impact into umbrella.
"Yeah. It was primarily a commercial auto both in the primary as well as excess and how that can bubble up to access an umbrella." — William Robert Berkley
capital returns and loss methodology impact
Q (Tracy Benguigui · Wolfe): She asked why capital returns were light and whether marks in the securities book affected deployment. She also asked how much the year-over-year loss ratio improvement was due to the new loss-picking methodology.
A: Management said the light capital return was a disciplined choice and they still hold a large amount of excess capital but will be thoughtful about returning it. They said the majority of the loss ratio improvement came from non-cat property performance and that the new methodology would not have a consequential impact—only incremental.
"The short answer is no. It would. It would not have a consequential impact." — William Robert Berkley
AI impact and casualty reinsurance
Q (Andrew Kligerman · TD Cowen): He asked how AI and robotics will affect workers' comp over time. He also asked why casualty reinsurance results were weak versus other liability in insurance.
A: Management said advancements in robotics, often driven by AI, are likely to impact the workforce over time and could have implications for workers' comp, though timing is uncertain. On casualty reinsurance, they said ceding commissions and pricing in the reinsurance market do not make economic sense for them, so they prefer opportunities on the insurance side where they are less of a commodity.
"I think undoubtedly is gonna have an impact on the workforce." — William Robert Berkley
loss ratio context and distribution plans
Q (Michael Zaremski · BMO): He asked whether the strong insurance loss ratio is sustainable and how higher interest rates affect pricing power and ROE targets. He also asked for an update on using MGAs/MGUs or alternative distribution.
A: Management said the CFO was being measured in commenting on improvements and that they feel well positioned given current rates and investment opportunities over time. They said MGAs/MGUs are not a cornerstone of distribution; alternative distribution exists but traditional channels remain important while they meet customers where they want to be served.
"So the MGA MGU thing, that is not a cornerstone of our distribution, though we do have some of that." — William Robert Berkley
AI liability wording and growth vs rate
Q (David Motemaden · Evercore): He asked how the company is thinking about liability from clients using AI, potential silent coverage, and whether they are seeing growth slow or planning further price easings to hit mid single-digit growth.
A: Management said they view AI as a real exposure and are actively addressing it with appropriate wordings and exclusions where needed; they are focused on identifying and getting paid for the exposure. On growth and rate, they said rate and growth are related and evolve with more data, and teams refine views as new information arrives.
"So long story short, we have a view that AI is a real exposure." — William Robert Berkley
portfolio marks and buybacks
Q (Joshua Shanker · BofA): He asked whether unrealized bond losses make the stock worth less and how marks affect their repurchase decisions and investing ambitions as rates move higher.
A: Management said their bond portfolio is high quality with short duration and they hold many securities to maturity, so they do not view unrealized marks as reducing intrinsic value; instead they see opportunity to reinvest cash at higher rates and may nudge out duration. They also said they can realize gains in other assets if needed.
"The, average quality is a strong double a minus." — William Robert Berkley
small account growth and cash flow drop
Q (Mark Hughes · Truist): He asked what’s driving growth in smaller accounts and what caused cash flow to fall this quarter.
A: Management said smaller account growth is driven by discipline on large accounts plus technology investments that let them turn quotes much faster, giving speed and responsiveness advantage in small accounts. For cash flow, they said a very large tax payment was a key driver and there were a few other one-time items.
"Because of the investments that have and continue to be made on the technology front, we are able to be more responsive than many of our peers in turning quotes around." — William Robert Berkley
efficiency gains and pricing decisions
Q (Brian Meredith · UBS): He asked where the claimed 20% efficiency gain will show up in results and whether higher Treasury yields change pricing targets or ROE guidance to units.
A: Management said the 20% efficiency improvement refers to being able to take in and quote about 20% more submissions, giving many more 'at bats' and enabling growth in small accounts. They said investment income and interest rates are part of pricing decisions but not the sole driver; they won’t blindly accept worse underwriting just because yields are higher.
"The comment that I was making and perhaps I should have been more specific is our ability to take in submissions and quote them is up by that 20%." — William Robert Berkley
expense ratio and timing of robot effects
Q (Katie Sakys · Autonomous): She asked if expense ratio will still rise this year or if tech cost saves may show early. She also asked the timeframe for robots/AI to affect workers' comp and whether any signs exist now.
A: Management said past tech investments will help mitigate expense ratio increases but will not guarantee it won’t tick up, and they are better positioned to control the ratio now than before. On robotics and workers' comp, they said change can be slow day-to-day but large over years; they think it is likely on the horizon but said they are not yet seeing specific examples among their clients.
"All things being equal, we are well. More well positioned to control it today and even more so tomorrow than we could yesterday." — William Robert Berkley
rates, inflation, and third-party reinsurance capital
Q (Meyer Shields · Keefe, Bruyette, & Woods): He asked whether higher interest rates should lead to higher non-casualty inflation and how third-party capital entering casualty reinsurance will play out.
A: Management said short-tail lines surprised them by showing little loss-cost inflation recently, but higher visibility of inflation is possible and market conditions already make commercial property less attractive. On third-party capital in casualty, they advised unpacking the models, understanding who provides the capital, control rights, commutation ability, and fine print before judging the risk transfer.
"I would encourage folks as they are while I appreciate the point and agree that there is more activity, I think 1 needs to unpack it and really read the fine print" — William Robert Berkley