W. R. Berkley (WRB) 8-K W. R. Berkley Corporation Reports Second Quarter Results Net Income Up 15% to $191 Million

EXHIBIT 99.1

W. R. Berkley Corporation	NEWS
475 Steamboat Road	RELEASE
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 SECOND QUARTER RESULTS
NET INCOME UP 15% TO $191 MILLION

     Greenwich, CT, July 23, 2007 — W. R. Berkley Corporation (NYSE: BER)today reported net income for the second quarter of 2007 of $191 million, or 93 cents per share, a 15% increase from $165 million, or 82 cents per share, for the second quarter of 2006. Net operating income for the second quarter of 2007 increased 13% to $187 million, or 92 cents per share, compared with $166 million, or 82 cents per share, for the corresponding quarter of 2006. Net operating income is a non-GAAP financial measure defined by the Company as net income excluding realized investment gains and losses.

Summary Financial Data
(Amounts in thousands, except per share data)

	Second Quarter				Six Months
	2007		2006		2007		2006
Gross premiums written	$	1,265,679	$	1,341,347	$	2,649,041	$	2,752,182
Net premiums written		1,136,764		1,217,985		2,391,536		2,496,516
Net income		190,633		165,452		379,059		327,154
Net income per diluted share		0.93		0.82		1.86		1.62
Net operating income		187,216		165,986		370,846		325,935
Net operating income per diluted share		0.92		0.82		1.82		1.61

W. R. Berkley Corporation Page 2

Second quarter highlights included:

• Return on equity was 22.9% on an annualized basis.

• GAAP combined ratio was 87.9%.

• Net investment income grew 16% to $169 million.

• Paid loss ratio was 42%.

     Commenting on the Company’s activities, William R. Berkley, chairman and chief executive officer, said: “We’ve completed another excellent quarter. Our underwriting results continue to be strong. The strength of our balance sheet is outstanding and our assets have not been adversely impacted by the various uncertainties in the current environment.

     “Investment income increased as a result of our growing asset base and higher interest rates. While we have a significant portfolio of mortgage backed securities, they contain virtually no sub-prime element. Our direct real estate participation continues to perform well as has our portfolio of equity investments. There are a significant number of capital gains embedded in our portfolio that should become realized over the next several years.

     “The insurance pricing environment is continuing its downward trend with modest acceleration. On average, year over year prices were down approximately five percent for the quarter. While it takes five quarters for these prices to be fully reflected in our financial statements, it is very likely that over time our underwriting profitability will decline. There are still some attractive opportunities but they are fewer and harder to find.

     “We continue to manage our capital and expect to deliver an after tax return in excess of twenty percent again this year. We believe that our Company has the ability to deliver outstanding returns for our shareholders throughout the cycle,” Mr. Berkley concluded.

W. R. Berkley Corporation Page 3

Webcast Conference Call

     The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on Tuesday, July 24, 2007 at 9:00 a.m. eastern time. The conference call will be webcast live on the Company’s website at www.wrberkley.com. A recording of the call 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 2007 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 long-tail and potentially volatile nature of the insurance and reinsurance business, product demand and pricing, claims development and the process of estimating reserves, the uncertain nature of damage theories and loss amounts, natural and man-made catastrophic losses, including as a result of terrorist activities, the impact of competition, the success of our new ventures or acquisitions and the availability of other opportunities, the availability of reinsurance, exposure as to coverage for terrorist acts, our retention under The Terrorism Risk Insurance Act of 2002, as amended (“TRIA”), and the potential expiration of TRIA, the ability of our reinsurers to pay reinsurance recoverables owed to us, investment risks, including those of our portfolio of fixed income securities and investments in equity securities, including merger arbitrage investments, exchange rate and political risks relating to our international operations, legislative and regulatory developments, including those related to alleged anti-competitive or other improper business practices in the insurance industry, changes in the ratings assigned to us by ratings agencies, the availability of dividends from our insurance company subsidiaries, our ability to successfully acquire and integrate companies and invest in new insurance ventures, our ability to attract and retain qualified employees, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These risks could cause actual results of the industry or our actual results for the year 2007 and beyond to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. Any projections of growth in the Company’s net premiums written and management fees would not necessarily result in commensurate levels of underwriting and operating profits. 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 Page 4

Consolidated Financial Summary
(Amounts in thousands, except per share data)

	Second Quarter						Six Months
	2007			2006			2007			2006
Revenues:
Net premiums written	$	1,136,764		$	1,217,985		$	2,391,536		$	2,496,516
Change in unearned premiums		34,876			(31,305	)		(64,963	)		(163,459	)
Premiums earned		1,171,640			1,186,680			2,326,573			2,333,057
Net investment income		168,943			145,067			334,364			276,564
Service fees		25,343			26,966			51,336			53,560
Realized investment gains (losses)		5,280			(673	)		12,670			2,002
Other income		15,377			306			20,661			697
Total revenues		1,386,583			1,358,346			2,745,604			2,665,880
Expenses:
Losses and loss expenses		703,669			742,110			1,388,816			1,443,308
Other operating expenses		389,791			358,926			775,022			714,580
Interest expense		22,700			23,272			43,400			46,741
Total expenses		1,116,160			1,124,308			2,207,238			2,204,629
Income before income taxes and minority interest		270,423			234,038			538,366			461,251
Income tax expense		(79,376	)		(67,883	)		(158,511	)		(132,806	)
Minority interest		(414	)		(703	)		(796	)		(1,291	)
Net income	$	190,633		$	165,452		$	379,059		$	327,154
Net income per share:
Basic	$	0.98		$	0.86		$	1.96		$	1.70
Diluted	$	0.93		$	0.82		$	1.86		$	1.62
Average shares outstanding:
Basic		194,345			192,337			193,775			192,041
Diluted		203,922			202,450			203,930			202,450

W. R. Berkley Corporation Page 5

Operating Results by Segment
(Amounts in thousands, except ratios (1))

	Second Quarter						Six Months
	2007			2006			2007			2006
Specialty:
Gross premiums written	$	480,674		$	521,825		$	938,526		$	996,126
Net premiums written		452,610			496,017			886,585			943,580
Premiums earned		442,110			443,212			885,565			861,457
Pre-tax income		136,843			112,732			264,555			219,218
Loss ratio		55.7	%		60.7	%		56.9	%		60.3	%
Expense ratio		26.4	%		25.0	%		26.2	%		25.2	%
GAAP combined ratio		82.1	%		85.7	%		83.1	%		85.5	%
Regional (2):
Gross premiums written	$	371,879		$	372,481		$	749,297		$	737,147
Net premiums written		330,057			322,910			655,430			634,291
Premiums earned		309,812			299,613			614,179			589,575
Pre-tax income		51,903			43,930			107,224			98,560
Loss ratio		60.1	%		62.0	%		59.3	%		59.4	%
Expense ratio		31.0	%		30.2	%		31.0	%		30.6	%
GAAP combined ratio		91.1	%		92.2	%		90.3	%		90.0	%
Alternative Markets:
Gross premiums written	$	123,906		$	123,843		$	404,334		$	397,291
Net premiums written		100,808			102,709			351,331			341,131
Premiums earned		159,266			162,028			321,930			324,769
Pre-tax income		63,592			74,520			131,310			141,642
Loss ratio		57.2	%		51.8	%		56.7	%		53.6	%
Expense ratio		24.2	%		23.1	%		23.4	%		22.2	%
GAAP combined ratio		81.4	%		74.9	%		80.1	%		75.8	%
Reinsurance:
Gross premiums written	$	210,053		$	258,628		$	415,235		$	505,661
Net premiums written		190,705			242,957			381,566			478,766
Premiums earned		196,986			226,307			382,264			451,549
Pre-tax income		45,892			34,037			92,299			64,096
Loss ratio		70.2	%		74.5	%		67.5	%		73.6	%
Expense ratio		26.9	%		25.1	%		29.5	%		26.3	%
GAAP combined ratio		97.1	%		99.6	%		97.0	%		99.9	%
International:
Gross premiums written	$	79,167		$	64,570		$	141,649		$	115,957
Net premiums written		62,584			53,392			116,624			98,748
Premiums earned		63,466			55,520			122,635			105,707
Pre-tax income		7,900			10,820			15,271			16,732
Loss ratio		65.8	%		62.4	%		65.5	%		64.0	%
Expense ratio		33.3	%		30.1	%		32.5	%		31.7	%
GAAP combined ratio		99.1	%		92.5	%		98.0	%		95.7	%

(Continued)

W. R. Berkley Corporation Page 6

Operating Results by Segment (continued)
(Amounts in thousands, except ratios (1))

	Second Quarter						Six Months
	2007			2006			2007			2006
Corporate and Eliminations:
Realized investment gains (losses)	$	5,280		$	(673	)	$	12,670		$	2,002
Interest and other, net		(40,987	)		(41,328	)		(84,963	)		(80,999	)
Pre-tax loss		(35,707	)		(42,001	)		(72,293	)		(78,997	)
Total:
Gross premiums written	$	1,265,679		$	1,341,347		$	2,649,041		$	2,752,182
Net premiums written		1,136,764			1,217,985			2,391,536			2,496,516
Premiums earned		1,171,640			1,186,680			2,326,573			2,333,057
Pre-tax income		270,423			234,038			538,366			461,251
Loss ratio		60.1	%		62.5	%		59.7	%		61.9	%
Expense ratio		27.8	%		26.4	%		28.0	%		26.7	%
GAAP combined ratio		87.9	%		88.9	%		87.7	%		88.6	%

(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. Underwriting expenses do not include expenses related to insurance services or unallocated corporate expenses. For the international segment, the loss and expense ratios do not include life insurance business. GAAP combined ratio is the sum of the loss ratio and the expense ratio.

(2)

For the second quarters of 2007 and 2006, weather-related losses were $16 million and $20 million, respectively. For the first six months of 2007 and 2006, weather-related losses were $22 million and $25 million, respectively.

W. R. Berkley Corporation Page 7                

Selected Balance Sheet Information
(Amounts in thousands, except per share data)

	June 30,		December 31,
	2007		2006
Net invested assets (1)	$	12,656,927	$	12,012,298
Total assets		16,626,837		15,656,489
Reserves for losses and loss expenses		8,207,877		7,784,269
Senior notes and other debt		1,121,653		869,l87
Junior subordinated debentures		242,056		241,953
Stockholders’ equity (2)		3,571,177		3,335,159
Shares outstanding		192,876		192,772
Stockholders’ equity per share		18.52		17.30

(1)	Net invested assets include investments, cash investments and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.
(2)	Stockholders’ equity includes after-tax unrealized gains from investments and currency translation adjustments of $46 million and $126 million as of June 30, 2007 and December 31, 2006, respectively.

W. R. Berkley Corporation Page 8

Supplemental Information
(Amounts in thousands)

	Second Quarter						Six Months
	2007			2006			2007			2006
Reconciliation of net operating income to net income:
Net operating income (1)	$	187,216		$	165,986		$	370,846		$	325,935
Realized investment gains (losses), net of taxes		3,417			(534	)		8,213			1,219
Net income	$	190,633		$	165,452		$	379,059		$	327,154
Return on equity:
Net Income (2)		22.9	%		25.8	%		22.7	%		25.5	%
Net operating income (2)		22.5	%		25.9	%		22.2	%		25.4	%
Cash flow:
Cash flow from operations before cash transfers to/from trading account (3)	$	279,993		$	341,364		$	637,214		$	777,530
Trading account transfers		—			(25,000	)		—			(225,000	)
Cash flow from operations	$	279,993		$	316,364		$	637,214		$	552,530

(1)	Net operating income is a non-GAAP financial measure defined by the Company as net income excluding realized investment gains and losses. Management believes that excluding realized investment gains and losses, which result primarily from changes in general economic conditions, provides a useful indicator of trends in the Company’s underlying operations.
(2)	Return on equity represents net income and net operating income expressed on an annualized basis as a percentage of beginning of year stockholders’ equity.
(3)	Cash flow before trading account transfers is a non-GAAP financial measure that excludes cash contributions to and withdrawals from the arbitrage trading account. Management believes that cash transfers to and withdrawals from the arbitrage trading account are the result of changes in investment allocations and that excluding such transfers provides a useful measure of the Company’s cash flow. Reclassifications have been made to the 2006 cash flow amounts to conform with the presentation in 2007.