W. R. Berkley (WRB) 8-K Results of Operations and Financial Condition

Exhibit 99.1

W. R. Berkley Corporation
475 Steamboat Road
Greenwich, Connecticut 06830
(203) 629-3000 NEWS
RELEASE

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 21%; Book Value per Share Increased 7%

     Greenwich, CT, July 27, 2009 — W. R. Berkley Corporation (NYSE: WRB)today reported net income for the second quarter of 2009 of $97 million, or 59 cents per share, compared with $80 million, or 46 cents per share, for the second quarter of 2008. Operating income for the second quarter of 2009 was $100 million, or 60 cents per share, compared with $139 million, or 80 cents per share, for the corresponding quarter of 2008. Operating income is a non-GAAP financial measure defined by the Company as net income excluding income or losses from investment funds and net investment gains or losses.

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

	Second Quarter				Six Months
	2009		2008		2009		2008
Gross premiums written	$	1,054,577	$	1,114,810	$	2,202,819	$	2,399,983
Net premiums written		908,912		991,549		1,932,384		2,149,114
Net income		97,387		80,257		77,041		268,695
Net income per diluted share		0.59		0.46		0.46		1.50
Operating income		99,930		139,133		217,226		288,737
Operating income per diluted share		0.60		0.80		1.30		1.62

W. R. Berkley Corporation Page 2

     Second quarter highlights included:

• GAAP combined ratio was 95.3%.

• Paid loss ratio was 59.7%.

• Book value per share increased by 7% to $20.56.

• Cash flow from operations (before cash transferred to investment trading account) was $189 million.

     Commenting on the Company’s activities, William R. Berkley, chairman and chief executive officer, said: “We were pleased with our quarterly results. The slightly higher combined ratio compared with the first quarter’s was entirely due to increased storm activity.

     “The market value of our investment portfolio improved, and liquidity remains strong. While inflation is likely to be a significant intermediate and long-term concern, we do not consider it to be a near-term issue. We have extended the portfolio duration slightly; however, it is still approximately one year shorter than the duration of our liabilities. The Company’s cash flow remains strong and we continue to focus our investment portfolio on securities rated “A” or better.

     “From an operating point of view, we generally believe that the insurance cycle is bottoming out and see early signs of improving conditions. Our greatest competition continues to come from national carriers that aggressively focus on large accounts and market share. In addition, new entrants in the specialty lines are behaving in an undisciplined manner in an effort to establish a market presence.

     “We continue to believe that our Company will meet or exceed our risk adjusted return objectives over 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 28, 2009 at 8:30 a.m. eastern time. The conference call will be webcast live on the Company’s website at www.wrberkley.com, and related charts will be posted there prior to the call. 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 2009 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 potential impact of the current conditions in the financial markets and the ongoing economic downturn on our results and financial condition, particularly if such conditions continue; the potential impact of current legislative, regulatory, accounting and other initiatives taken or which may be taken in response to the current conditions in the financial markets and the ongoing economic downturn; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, merger arbitrage and private equity investments; 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 significant and increasing 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 Programs Reauthorization Act of 2007; the ability of our reinsurers to pay reinsurance recoverables owed to us; the impact of current conditions in the financial markets and the ongoing economic downturn on our ability to raise debt or equity capital if needed; foreign currency and political risks relating to our international operations; other 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 or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; 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 and uncertainties could cause our actual results for the year 2009 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our 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
	2009			2008			2009			2008
Revenues:
Net premiums written	$	908,912		$	991,549		$	1,932,384		$	2,149,114
Change in unearned premiums		42,260			83,162			(2,004	)		49,906
Net premiums earned		951,172			1,074,711			1,930,380			2,199,020
Net investment income		132,135			162,333			270,351			301,104
Losses from investment funds		(37,821	)		(8,394	)		(152,895	)		(2,668	)
Insurance service fees		25,257			24,761			51,840			51,873
Net investment gains (losses):
Net realized gains on sales of investments		49,224			161			62,616			72,866
Other-than-temporary investment impairments		(23,932	)		(82,324	)		(134,132	)		(101,003	)
Less investment impairments recognized in other comprehensive income		8,604			—			8,604			—
Net investment gains (losses)		33,896			(82,163	)		(62,912	)		(28,137	)
Revenues from wholly-owned investees		49,942			27,131			80,845			52,019
Other income		517			760			1,110			1,132
Total revenues		1,155,098			1,199,139			2,118,719			2,574,343
Expenses:
Losses and loss expenses		597,267			679,703			1,207,712			1,362,744
Other operating costs and expenses		365,514			376,249			722,861			756,422
Expenses from wholly-owned investees		46,791			26,343			76,745			51,278
Interest expense		20,213			21,396			40,437			44,140
Total expenses		1,029,785			1,103,691			2,047,755			2,214,584
Income before income taxes		125,313			95,448			70,964			359,759
Income tax (expense) benefit		(27,881	)		(15,173	)		6,184			(90,879	)
Net income before noncontrolling interests		97,432			80,275			77,148			268,880
Noncontrolling interests		(45	)		(18	)		(107	)		(185	)
Net income to common shareholders	$	97,387		$	80,257		$	77,041		$	268,695
Net income per share:
Basic	$	0.61		$	0.48		$	0.48		$	1.56
Diluted	$	0.59		$	0.46		$	0.46		$	1.50
Average shares outstanding:
Basic		160,008			167,172			160,546			171,935
Diluted		166,226			173,684			166,716			178,723

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

	Second Quarter						Six Months
	2009			2008			2009			2008
Specialty:
Gross premiums written	$	394,889		$	406,580		$	759,783		$	834,722
Net premiums written		338,683			375,939			661,240			773,726
Premiums earned		346,052			409,417			703,980			838,753
Pre-tax income		65,920			108,729			93,664			221,515
Loss ratio		60.0	%		58.8	%		61.4	%		58.4	%
Expense ratio		29.8	%		28.3	%		30.3	%		27.9	%
GAAP combined ratio		89.8	%		87.1	%		91.7	%		86.3	%
Regional (2):
Gross premiums written	$	317,445		$	361,633		$	640,246		$	734,628
Net premiums written		277,730			315,288			559,765			638,864
Premiums earned		281,903			309,424			567,519			620,693
Pre-tax income		11,677			25,275			30,042			63,079
Loss ratio		66.6	%		67.6	%		63.8	%		65.6	%
Expense ratio		34.2	%		31.9	%		33.6	%		31.5	%
GAAP combined ratio		100.8	%		99.5	%		97.4	%		97.1	%
Alternative Markets:
Gross premiums written	$	113,960		$	121,161		$	362,834		$	389,245
Net premiums written		99,486			100,776			325,201			338,813
Premiums earned		151,309			155,885			303,302			311,094
Pre-tax income		36,961			52,698			67,395			113,680
Loss ratio		66.4	%		64.1	%		64.3	%		60.8	%
Expense ratio		25.7	%		23.3	%		24.9	%		23.5	%
GAAP combined ratio		92.1	%		87.4	%		89.2	%		84.3	%
Reinsurance:
Gross premiums written	$	116,217		$	126,583		$	224,073		$	263,048
Net premiums written		107,055			118,946			207,888			248,592
Premiums earned		94,257			131,767			199,880			284,201
Pre-tax income		21,228			33,644			24,227			66,933
Loss ratio		56.4	%		65.7	%		60.1	%		64.8	%
Expense ratio		42.9	%		34.5	%		39.1	%		34.6	%
GAAP combined ratio		99.3	%		100.2	%		99.2	%		99.4	%
International:
Gross premiums written	$	112,066		$	98,853		$	215,883		$	178,340
Net premiums written		85,958			80,600			178,290			149,119
Premiums earned		77,651			68,218			155,699			144,279
Pre-tax income		720			7,279			6,888			17,925
Loss ratio		61.9	%		63.5	%		63.0	%		63.8	%
Expense ratio		38.8	%		40.3	%		38.2	%		38.3	%
GAAP combined ratio		100.7	%		103.8	%		101.2	%		102.1	%

(Continued)

W. R. Berkley Corporation Page 6

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

	Second Quarter						Six Months
	2009			2008			2009			2008
Corporate and Eliminations:
Net investment gains (losses)	$	33,896		$	(82,163	)	$	(62,912	)	$	(28,137	)
Interest expense		(20,213	)		(21,396	)		(40,437	)		(44,140	)
Other revenues and expenses (3)		(24,876	)		(28,618	)		(47,903	)		(51,096	)
Pre-tax loss		(11,193	)		(132,177	)		(151,252	)		(123,373	)
Total:
Gross premiums written	$	1,054,577		$	1,114,810		$	2,202,819		$	2,399,983
Net premiums written		908,912			991,549			1,932,384			2,149,114
Premiums earned		951,172			1,074,711			1,930,380			2,199,020
Pre-tax income		125,313			95,448			70,964			359,759
Loss ratio		62.8	%		63.2	%		62.6	%		62.0	%
Expense ratio		32.5	%		30.1	%		32.0	%		29.9	%
GAAP combined ratio		95.3	%		93.3	%		94.6	%		91.9	%

(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. GAAP combined ratio is the sum of the loss ratio and the expense ratio.
(2)	For the second quarters of 2009 and 2008, weather-related losses for the regional segment were $28 million and $31 million, respectively. For the first six months of 2009 and 2008, weather-related losses for the regional segment were $36 million and $45 million, respectively.
(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 Page 7

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

	June 30,		December 31,
	2009		2008
Net invested assets (1)	$	12,824,421	$	12,522,360
Total assets		16,656,495		16,121,158
Reserves for losses and loss expenses		9,084,003		8,999,596
Senior notes and other debt		1,022,732		1,021,869
Junior subordinated debentures		249,691		249,584
Total equity (2) (3)		3,295,699		3,051,680
Common stockholder’s equity (4)		3,290,272		3,046,319
Common shares outstanding (4)		160,037		161,467
Common stockholders’ equity per share		20.56		18.87

(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)	The Company adopted FASB Statement 160 (“FAS 160”), “Non-controlling Interests in Consolidated Financial Statements” effective January 1, 2009. FAS 160 requires that noncontrolling (minority) interests in a subsidiary be reported as equity in the consolidated financial statements. The presentation requirements of FAS 160 were applied retrospectively to the 2008 financial statements. The effect of the adoption of FAS 160 was to increase total equity as of December 31, 2008 by $5 million.
(3)	After-tax unrealized investment gains were $31 million at June 30, 2009, compared with unrealized investment losses of $142 million at December 31, 2008. Unrealized currency translation losses were $43 million and $72 million as of June 30, 2009 and December 31, 2008, respectively.
(4)	During the first six months of 2009, the Company repurchased 1.6 million shares of its common stock for $32 million.

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Supplemental Information
(Amounts in thousands)

	Second Quarter						Six Months
	2009			2008			2009			2008
Reconciliation of operating income to net income:
Operating income (1)	$	99,930		$	139,133		$	217,226		$	288,737
Net after-tax investment gains (losses)		22,041			(53,420	)		(40,803	)		(18,308	)
Net after-tax losses from investment funds		(24,584	)		(5,456	)		(99,382	)		(1,734	)
Net income	$	97,387		$	80,257		$	77,041		$	268,695
Return on equity:
Net income (2)		12.8	%		8.9	%		5.1	%		15.0	%
Operating income (2)		13.1	%		15.5	%		14.3	%		16.1	%
Cash flow:
Cash flow from operations before cash transfers to/from trading account (3)	$	189,208		$	144,491		$	280,768		$	357,851
Trading account transfers		(220,000	)		50,000			(290,000	)		50,000
Cash flow (used in) from operations	$	(30,792	)	$	194,491		$	(9,232	)	$	407,851

(1)	Operating income is a non-GAAP financial measure defined by the Company as net income excluding income or losses from investment funds and net investment gains or losses. The Company refined its definition of operating income beginning with the second quarter of 2009. Management believes that excluding income or losses from investment funds and net investment gains or 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 from operations before cash transfers to/from trading account 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.