W. R. Berkley (WRB) 8-K W. R. Berkley Corporation Reports Fourth Quarter Results

	NEWS RELEASE
W. R. Berkley Corporation 475 Steamboat Road Greenwich, Connecticut 06830 (203) 629-3000
FOR IMMEDIATE RELEASE	CONTACT:	Karen A. Horvath
		Vice President - External
		Financial Communications
		(203) 629-3000

W. R. BERKLEY CORPORATION REPORTS FOURTH QUARTER RESULTS

Net Income Up 41%, Return on Equity 16.7%

Greenwich, CT, January 28, 2013 -- W. R. Berkley Corporation (NYSE: WRB) today reported net income for the fourth quarter of 2012 of $165 million, or $1.17 per share, compared with $117 million, or 82 cents per share, for the fourth quarter of 2011.

Summary Financial Data

(Amounts in thousands, except per share data)

	Fourth Quarter				Full Year
	2012		2011		2012		2011
Gross premiums written	$	1,452,709	$	1,255,879	$	5,779,879	$	5,077,313
Net premiums written	1,228,135		1,090,511		4,898,539		4,357,368
Net income	165,489		117,027		510,592		391,211
Net income per diluted share	1.17		0.82		3.56		2.69
Operating income (1)	90,430		82,290		373,790		309,564
Operating income per diluted share	0.64		0.58		2.61		2.13

(1) Operating income is a non-GAAP financial measure defined by the Company as net income excluding net investment gains and losses.

W. R. Berkley Corporation     Page2

Fourth quarter highlights included:

• Return on equity of 16.7%.

• Average rates on renewed policies increased 6.5%.

• GAAP combined ratio was 98.1%.

• Net premiums written increased 12.6%.

• Net investment income up 30% to $152 million.

• Special dividend of $1.00 per share of common stock paid in December 2012.

Commenting on the Company's performance, William R. Berkley, chairman and chief executive officer, said: "We are very pleased with the Company's fourth quarter performance. Our core underwriting results continued to improve as prices increased on renewal business for the third successive year and loss cost inflation continued at modest levels. The impact of Storm Sandy was mitigated by strategic reinsurance purchases, and our fourth quarter combined ratio was only slightly higher than the prior year.

"Our gross written premiums increased almost 16%. We continue to retain pricing power in most areas of the business, and our renewal retention remains satisfactory. We expect to have improved margins as higher prices are reflected in our earned premiums.

"As we have commented in the past, our investment income benefits from particular investment opportunities that produce better than market returns. We realized gains from both our private equity investments and our common stock portfolio, which contributed to our return on equity of just under 17% for the quarter. These types of investments are part of our normal strategy, and we expect additional realized gains to be achieved in the coming year.

"We paid a $1.00 per share special dividend in December, prior to the change in Federal tax laws. Together with our regular dividend, we distributed almost all of our fourth quarter earnings to our shareholders. We are increasingly optimistic about our ability to increase prices and deliver improving returns," Mr. Berkley concluded.

W. R. Berkley Corporation     Page3

Webcast Conference Call

The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on Tuesday, January 29, 2013, at 9:00 a.m. eastern time. The conference call will be webcast live on the Company's website at www.wrberkley.com. A replay of the webcast will be available on the Company's website approximately two hours after the end of the conference call.

About W. R. Berkley Corporation

Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates in five segments of the property casualty insurance business: specialty insurance, regional property casualty insurance, alternative markets, reinsurance and international.

Forward Looking Information

This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2013 and beyond, are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable, investment funds, real estate, merger arbitrage and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts; natural and man-made catastrophic losses, including as a result of terrorist activities; general economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response to it, on our results and financial condition; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Act of 2002, as amended; the ability of our reinsurers to pay reinsurance recoverables owed to us; foreign currency and political risks relating to our international operations; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; our ability to attract and retain key personnel and qualified employees; potential difficulties with technology and/or data security; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2013 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

# # #

W. R. Berkley Corporation     Page4

Consolidated Financial Summary

(Amounts in thousands, except per share data)

	Fourth Quarter						Full Year
	2012			2011			2012			2011
Revenues:
Net premiums written	$	1,228,135		$	1,090,511		$	4,898,539		$	4,357,368
Change in unearned premiums	11,840			14,792			(225,023		)	(196,501		)
Net premiums earned	1,239,975			1,105,303			4,673,516			4,160,867
Net investment income	151,875			117,090			586,763			526,351
Insurance service fees	26,012			23,356			103,133			92,843
Net investment gains:
Net realized gains on investment sales	116,462			52,069			201,451			125,881
Change in valuation allowance, net of other-than-temporary impairments	—			—			9,014			(400		)
Net investment gains	116,462			52,069			210,465			125,481
Revenues from wholly-owned investees	73,917			72,735			247,113			248,678
Other income	360			400			2,564			1,764
Total revenues	1,608,601			1,370,953			5,823,554			5,155,984
Expenses:
Losses and loss expenses	801,173			693,014			2,948,479			2,658,365
Other operating costs and expenses	467,599			429,590			1,799,623			1,626,526
Expenses from wholly-owned investees	74,784			71,436			247,222			245,495
Interest expense	32,552			28,195			126,302			112,512
Total expenses	1,376,108			1,222,235			5,121,626			4,642,898
Income before income taxes	232,493			148,718			701,928			513,086
Income tax expense	(66,994		)	(31,663		)	(191,285		)	(121,945		)
Net income before noncontrolling interests	165,499			117,055			510,643			391,141
Noncontrolling interests	(10		)	(28		)	(51		)	70
Net income to common stockholders	$	165,489		$	117,027		$	510,592		$	391,211
Net income per share:
Basic	$	1.22		$	0.85		$	3.72		$	2.80
Diluted	$	1.17		$	0.82		$	3.56		$	2.69
Average shares outstanding:
Basic	135,861			137,174			137,097			139,688
Diluted	141,654			143,016			143,315			145,672

W. R. Berkley Corporation     Page5

Operating Results by Segment

(Amounts in thousands, except ratios (1) (2))

	Fourth Quarter						Full Year
	2012			2011			2012			2011
Specialty:
Gross premiums written	$	544,928		$	474,205		$	2,071,193		$	1,818,344
Net premiums written	452,131			408,425			1,747,687			1,554,516
Premiums earned	431,054			395,181			1,646,471			1,442,748
Pre-tax income	57,283			53,324			261,856			290,937
Loss ratio	65.4		%	63.8		%	62.8		%	59.4		%
Expense ratio	32.6		%	32.0		%	32.7		%	32.6		%
GAAP combined ratio	98.0		%	95.8		%	95.5		%	92.0		%
Regional:
Gross premiums written	$	292,360		$	268,138		$	1,218,602		$	1,149,362
Net premiums written	266,303			247,127			1,119,274			1,064,507
Premiums earned	281,145			270,552			1,090,217			1,065,975
Pre-tax income	43,000			33,299			122,211			30,529
Loss ratio	56.2		%	57.9		%	59.6		%	68.0		%
Expense ratio	36.2		%	35.6		%	36.5		%	36.1		%
GAAP combined ratio	92.4		%	93.5		%	96.1		%	104.1		%
Alternative Markets:
Gross premiums written	$	206,727		$	171,094		$	971,370		$	827,156
Net premiums written	146,855			121,980			702,922			619,097
Premiums earned	174,185			158,402			680,334			612,558
Pre-tax income	53,344			29,653			194,433			145,660
Loss ratio	68.5		%	73.3		%	71.4		%	72.3		%
Expense ratio	26.2		%	26.5		%	25.9		%	26.7		%
GAAP combined ratio	94.7		%	99.8		%	97.3		%	99.0		%
Reinsurance:
Gross premiums written	$	134,805		$	115,474		$	508,717		$	453,170
Net premiums written	127,891			110,805			477,252			430,329
Premiums earned	119,487			110,788			446,939			426,008
Pre-tax income	18,526			16,368			93,268			83,150
Loss ratio	68.1		%	63.4		%	60.5		%	61.6		%
Expense ratio	38.2		%	39.7		%	40.1		%	40.5		%
GAAP combined ratio	106.3		%	103.1		%	100.6		%	102.1		%
International:
Gross premiums written	$	273,889		$	226,968		$	1,009,997		$	829,281
Net premiums written	234,955			202,174			851,404			688,919
Premiums earned	234,104			170,380			809,555			613,578
Pre-tax income	11,376			11,613			62,061			39,033
Loss ratio	68.6		%	57.5		%	62.9		%	60.5		%
Expense ratio	34.8		%	41.1		%	37.2		%	40.2		%
GAAP combined ratio	103.4		%	98.6		%	100.1		%	100.7		%

W. R. Berkley Corporation     Page6

Operating Results by Segment (Continued)

(Amounts in thousands, except ratios (1)(2))

	Fourth Quarter						Full Year
	2012			2011			2012			2011
Corporate and Eliminations:
Net investment gains	$	116,462		$	52,069		$	210,465		$	125,481
Interest expense	(32,552		)	(28,195		)	(126,302		)	(112,512		)
Other revenues and expenses (3)	(34,946		)	(19,413		)	(116,064		)	(89,192		)
Pre-tax income (loss)	48,964			4,461			(31,901		)	(76,223		)
Consolidated:
Gross premiums written	$	1,452,709		$	1,255,879		$	5,779,879		$	5,077,313
Net premiums written	1,228,135			1,090,511			4,898,539			4,357,368
Premiums earned	1,239,975			1,105,303			4,673,516			4,160,867
Pre-tax income	232,493			148,718			701,928			513,086
Loss ratio	64.6		%	62.7		%	63.1		%	63.9		%
Expense ratio	33.5		%	34.3		%	34.1		%	34.6		%
GAAP combined ratio	98.1		%	97.0		%	97.2		%	98.5		%

(1) Loss ratio is losses and loss expenses incurred expressed as a percentage of premiums earned. Expense ratio is underwriting expenses expressed as a percentage of premiums earned. GAAP combined ratio is the sum of loss ratio and expense ratio.

(2) Losses attributable to Storm Sandy, net of reinsurance recoveries and reinstatement premiums, were $40 million in the fourth quarter of 2012. Total losses from catastrophes were as follows (in thousands):

	Fourth Quarter					Full Year
	2012		2011			2012		2011
Specialty	$	6,560	$	1,702		$	18,213	$	17,316
Regional	624		(268		)	24,373		84,856
Alternative Markets	33		589			631		2,134
Reinsurance	19,811		6,294			20,691		23,973
International	13,786		6,232			16,290		25,086
Total	$	40,814	$	14,549		$	80,198	$	153,365

(3) Other revenues and expenses include corporate investment income, expenses not allocated to the business segments and revenues and expenses from investments in wholly-owned, non-insurance subsidiaries that are consolidated for financial reporting purposes.

W. R. Berkley Corporation     Page7

Selected Balance Sheet Information

(Amounts in thousands, except per share data)

	December 31, 2012		December 31, 2011
Net invested assets (1)	$	15,681,803	$	14,559,781
Total assets	20,155,896		18,403,873
Reserves for losses and loss expenses	9,751,086		9,337,134
Senior notes and other debt	1,871,535		1,500,503
Junior subordinated debentures	243,206		242,997
Common stockholders’ equity (2) (3) (4)	4,306,217		3,953,356
Common stock outstanding (3) (4)	136,018		137,520
Book value per share (4) (5)	31.66		28.75
Tangible book value per share (4) (5)	30.95		28.04

(1) Net invested assets include investments, cash and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.

(2) After-tax unrealized investment gains were $518 million and $430 million as of December 31, 2012 and 2011, respectively. Unrealized currency translation losses were $37 million and $61 million as of December 31, 2012 and 2011, respectively.

(3) During the fourth quarter of 2012, the Company repurchased 170,300 shares of its common stock at an average cost of $37.00 per share. During 2012, the Company repurchased 3.4 million shares of its common stock at an average cost of $37.24 per share and an aggregate cost of $128 million.

(4) The Financial Accounting Standards Board has issued new guidance regarding the treatment of costs associated with acquiring or renewing insurance contracts. This guidance modifies the definition of the types of costs that can be capitalized and specifies that the costs must be directly related to the successful acquisition of a new or renewed insurance contract. We adopted this guidance effective January 1, 2012 and retrospectively adjusted our previously issued financial statements (including the applicable 2011 information contained herein). The effect of adopting this guidance retrospectively was to decrease deferred acquisition costs by $84 million, common stockholders' equity by $55 million and book value per share by 40 cents as of December 31, 2011. The guidance also resulted in minor changes to other operating costs and expenses and expense ratios.

(5) Book value per share is total common stockholders’ equity divided by the number of common shares outstanding. Tangible book value per share is total common stockholders’ equity excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding.

W. R. Berkley Corporation     Page8

Supplemental Information

(Amounts in thousands)

	Fourth Quarter						Full Year
	2012			2011			2012			2011
Reconciliation of operating income to net income:
Operating income (1)	$	90,430		$	82,290		$	373,790		$	309,564
Investment gains, net of tax	75,059			34,737			136,802			81,647
Net income	$	165,489		$	117,027		$	510,592		$	391,211
Return on equity (2)	16.7		%	12.8		%	12.9		%	10.7		%
Cash flow from operations	$	222,108		$	185,036		$	675,457		$	670,279
Other operating costs and expenses:
Underwriting expenses	$	415,126		$	378,644		$	1,592,746		$	1,438,129
Service expenses	20,990			19,467			84,986			75,231
Net foreign currency (gains) losses	(3,219		)	287			(6,092		)	(1,884		)
Other costs and expenses	34,702			31,192			127,983			115,050
Total	$	467,599		$	429,590		$	1,799,623		$	1,626,526

(1) Operating income is a non-GAAP financial measure defined by the Company as net income excluding net investment gains and losses. Management believes that excluding net investment gains and losses, which are often discretionary and frequently relate to economic factors, provides a useful indicator of trends in the Company’s underlying operations.

(2) Return on equity represents net income expressed on an annualized basis as a percentage of beginning of year common stockholders’ equity.

W. R. Berkley Corporation     Page9

Investment Portfolio

December 31, 2012

(Amounts in thousands)

	Carrying Value		Percent of Total
Fixed maturity securities:
United States government and government agencies	$	898,463	5.7	%
State and municipal:
Special revenue	2,243,455		14.3	%
Pre-refunded	917,207		5.8	%
State general obligation	888,498		5.7	%
Local general obligation	399,783		2.5	%
Corporate backed	384,766		2.5	%
Total state and municipal	4,833,709		30.8	%
Mortgage-backed securities:
Agency	1,110,385		7.1	%
Commercial	273,568		1.7	%
Residential - Prime	236,372		1.5	%
Residential - Alt A	128,136		0.8	%
Total mortgage-backed securities	1,748,461		11.1	%
Corporate:
Industrial	1,590,816		10.2	%
Financial	799,602		5.1	%
Asset-backed	596,428		3.8	%
Utilities	235,409		1.5	%
Other	129,461		0.8	%
Total corporate	3,351,716		21.4	%
Foreign	1,111,607		7.1	%
Total fixed maturity securities (1)	11,943,956		76.1	%
Equity securities available for sale:
Common stocks	282,066		1.8	%
Preferred stocks	93,956		0.6	%
Total equity securities available for sale	376,022		2.4	%
Cash and cash equivalents (2)	1,245,505		7.9	%
Investment funds (2)	778,547		5.0	%
Real estate	606,735		3.9	%
Loans receivable	401,961		2.6	%
Arbitrage trading account	329,077		2.1	%
Net invested assets	$	15,681,803	100.0	%

(1)Total fixed maturity securities had an average rating of AA- and an average duration of 3.4 years.

(2) Cash and cash equivalents includes trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases. Investment funds are net of related liabilities of $31 million.

W. R. Berkley Corporation     Page10

Foreign Fixed Maturity Securities

December 31, 2012

(Amounts in thousands)

	Government		Corporate		Total
Australia	$	230,308	$	114,000	$	344,308
Canada	129,822		50,681		180,503
United Kingdom	142,036		33,668		175,704
Argentina	125,396		30,750		156,146
Germany	90,748		—		90,748
Brazil	51,752		—		51,752
Norway	38,625		—		38,625
Supranational (1)	37,013		—		37,013
Netherlands	—		14,427		14,427
Switzerland	—		11,403		11,403
Singapore	6,985		—		6,985
Uruguay	3,576		—		3,576
New Zealand	417		—		417
Total	$	856,678	$	254,929	$	1,111,607

(1) Supranational represents investments in the North American Development Bank, European Investment Bank and Inter-American Development Bank.