For insurers with a strong underwriting history and sound reserves, this period of rising insurance premiums (a "hard" market) is a great opportunity to write business that should be profitable for years to come. Likewise, insurers with low portfolio durations will soon have the opportunity to leverage higher rates.
W. R. Berkley (WRB) has all of that and more, including a strong track record in alternative investments and meaningful opportunities to grow their specialty and excess & surplus lines even as rate increases ease off. While Berkley shares are almost never conventionally cheap, and I do see some risk of sector-wide compression in multiples as premiums normalize, the total return potential isn't bad today, and this is at least worth a spot on a watchlist.
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