Evercore ISI Downgrades W.R. Berkley on Margin and Growth Headwinds

Evercore ISI downgraded W.R. Berkley (NYSE: WRB) to Underperform from In Line and lowered its price target to $69.00 from $70.00. Shares fell more than 1% in pre-market trading on Wednesday.
The firm said it saw approximately 4% downside to consensus EPS estimates for 2026–2027, driven by margin pressure and slowing top-line growth. Evercore cited rising loss ratios as Berkley embedded greater conservatism in loss picks, as well as slower growth across liability lines, including E&S small liability and workers’ compensation, where growth was expected to moderate following strong 2025 employment trends.
The analyst also continued to flag reserve concerns, noting that Berkley had recorded $485 million of adverse development on accident years 2022 and prior through the third quarter of 2025, partially offset by favorable development in more recent years. While Evercore did not expect net adverse prior-year development in 2026, it believed ongoing conservative reserving would pressure current-year loss ratios, leading to EPS misses and negative estimate revisions. The firm added that maintaining rate discipline amid pressure in certain casualty lines could also result in volume sacrifices and top-line shortfalls.