Here's Why W.R. Berkley (WRB) Stock Is An Attractive Bet
Zacks Investment Research | Jan 12, 2020 09:11PM ET
W.R. Berkley (NYSE:WRB) is well-poised for growth, given its strong insurance business, growth in international business and prudent capital deployment.
The insurance business of the company has witnessed premium growth over the past years. In the first nine months of 2019, the insurance business earned 88.4% of net premium written, supported by several new start-up units in varied business lines. Better pricing also added to the top line of the company.
The emerging international business across United Kingdom, Continental Europe, South America, Canada, Scandinavia, Asia and Australia has been boosting premium growth over the years.
Banking on solid capital position, W.R. Berkley hikes dividend each year apart from paying out special dividend and buying back shares. In June 2019, the company approved a special dividend of 50 cents (the 10th straight special dividend) and 10% hike in regular dividend (the 14th consecutive dividend hike). Its dividend yield of 0.7% compares favorably with the industry average of 0.4%, making it an attractive pick for yield-seeking investors.
Estimates for W.R. Berkley have been revised upward over the past seven days, reflecting analysts’ confidence in the stock. The Zacks Consensus Estimate for 2020 earnings per share has moved 0.3% north in the said time frame.
The company has a decent earnings surprise history. It beat estimates in each of the trailing four quarters, with the average being 32.31%.
Shares of W.R. Berkley have rallied 39% in a year’s time, outperforming the Original post
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