In a report released today, Bob Huang from Morgan Stanley maintained a Hold rating on W. R. Berkley Corporation (WRB – Research Report), with a price target of $65.00.
Bob Huang has given his Hold rating due to a combination of factors influencing W. R. Berkley Corporation’s stock. The company’s diversified business model is seen as a positive aspect, providing a buffer against potential reserve development issues. Despite pressures from social inflation, particularly in the Other Liability Occurrence lines, these challenges are considered manageable.
Favorable developments in the Workers Compensation line, driven by conservative claims frequency assumptions, have exceeded expectations and contribute positively to the overall reserve position. Concerns about future reserve charges due to social inflation are mitigated by the company’s conservative reserving approach, which provides a solid foundation for long-term stability. Overall, while there are pressures, the company’s strengths and management strategies justify a Hold rating.
In another report released on March 10, KBW also maintained a Hold rating on the stock with a $61.00 price target.