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

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 FOURTH QUARTER RESULTS

Return on Equity of 12.7% and Increasing Written Premiums

Greenwich, CT, January 31, 2012 — W. R. Berkley Corporation (NYSE: WRB) today reported net income for the fourth quarter of 2011 of $118 million, or 82 cents per share, compared with $127 million, or 85 cents per share, for the fourth quarter of 2010.

Summary Financial Data

(Amounts in thousands, except per share data)

	Fourth Quarter				Full Year
	2011		2010		2011		2010
Gross premiums written	$	1,255,879	$	1,055,093	$	5,077,313	$	4,416,077
Net premiums written		1,090,511		918,916		4,357,368		3,850,926
Net income		117,926		126,851		394,803		449,287
Net income per diluted share		0.82		0.85		2.71		2.90
Operating income (1)		83,189		104,633		313,156		412,413
Operating income per diluted share		0.58		0.70		2.15		2.66

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

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Fourth quarter highlights included:

• Book value per share increased 14% on an annualized basis.

• Average renewal rates increased 4.2%.

• GAAP combined ratio was 96.8%.

• Net premiums written increased 19%.

Commenting on the Company’s performance, William R. Berkley, chairman and chief executive officer, said: “We are pleased with our results for the quarter, but more importantly, with how we have positioned our company for the period ahead. Premiums written for our core business are beginning to grow again, and the newer units are growing at an increasing pace. Average renewal rates were up 4.2% during the quarter with the upward pricing trend accelerating. Our operating units’ priority is to remain focused on price.

“Our balance sheet is one of our strengths. We continue to establish our reserves with a recognition of increasing loss cost trends and the possibility of inflation. Our results benefitted again this quarter from our underwriting strategy, which limits our exposure to large catastrophic events.

“Our investment portfolio, which has had more volatility in recent periods, continues to provide attractive overall returns. As interest rates declined, we shifted a portion of our fixed-income portfolio to an array of other investment alternatives, ranging from common stock to commercial real estate. We are beginning to see the benefits of this change. We continue to maintain the quality of our fixed income portfolio, but we are willing to forgo immediate liquidity for a portion of the portfolio to achieve improved returns. Thus, we maintain a substantial amount of short-term marketable securities, which provides more than adequate liquidity.

“Our confidence in the cyclical turn is becoming greater as time passes. We continue to see recognition by the industry of the need for further rate increases and greater underwriting discipline. We anticipate 2012 will be a better year, although it will primarily be recognized in the second half when the benefits of price increases will be realized. We are excited about the opportunities currently before us,” Mr. Berkley concluded.

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Webcast Conference Call

The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on February 1, 2012 at 9:30 a.m. eastern time. The conference call will be webcast live on the Company’s website atwww.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 2012 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; 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 impact of significant competition; 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 economic downturn, and the potential effect of any legislative, regulatory, accounting or other initiatives taken in response to it, on our results and financial condition; the 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 Programs Reauthorization Act of 2007; 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; 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; 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 2012 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.

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Consolidated Financial Summary

(Amounts in thousands, except per share data)

	Fourth Quarter						Full Year
	2011			2010			2011			2010
Revenues:
Net premiums written	$	1,090,511		$	918,916		$	4,357,368		$	3,850,926
Change in unearned premiums		14,792			70,680			(196,501	)		(15,344	)
Net premiums earned		1,105,303			989,596			4,160,867			3,835,582
Net investment income		117,090			138,090			526,351			530,525
Insurance service fees		23,356			21,355			92,843			85,405
Net investment gains:
Net realized gains on sales		52,069			39,431			125,881			65,786
Other-than-temporary impairments		—			(5,500	)		(400	)		(9,205	)
Net investment gains		52,069			33,931			125,481			56,581
Revenues from wholly-owned investees		72,735			47,966			248,678			214,454
Other income		400			404			1,764			1,522
Total revenues		1,370,953			1,231,342			5,155,984			4,724,069
Expenses:
Losses and loss expenses		693,014			591,512			2,658,365			2,309,867
Other operating costs and expenses		428,289			388,355			1,621,329			1,496,362
Expenses from wholly-owned investees		71,436			47,695			245,495			207,566
Interest expense		28,195			28,189			112,512			106,969
Total expenses		1,220,934			1,055,751			4,637,701			4,120,764
Income before income taxes		150,019			175,591			518,283			603,305
Income tax expense		(32,065	)		(48,699	)		(123,550	)		(153,739	)
Net income before noncontrolling interests		117,954			126,892			394,733			449,566
Noncontrolling interests		(28	)		(41	)		70			(279	)
Net income to common stockholders	$	117,926		$	126,851		$	394,803		$	449,287
Net income per share:
Basic	$	0.86		$	0.88		$	2.83		$	3.02
Diluted	$	0.82		$	0.85		$	2.71		$	2.90
Average shares outstanding:
Basic		137,174			143,400			139,688			148,752
Diluted		143,016			150,033			145,672			155,081

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Operating Results by Segment

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

	Fourth Quarter						Full Year
	2011			2010			2011			2010
Specialty:
Gross premiums written	$	474,205		$	394,640		$	1,818,344		$	1,525,856
Net premiums written		408,425			336,643			1,554,516			1,311,831
Premiums earned		395,181			332,668			1,442,748			1,288,373
Operating income		53,780			83,809			292,759			296,645
Loss ratio		63.8	%		56.3	%		59.4	%		58.3	%
Expense ratio		31.9	%		32.7	%		32.5	%		32.7	%
GAAP combined ratio		95.7	%		89.0	%		91.9	%		91.0	%
Regional:
Gross premiums written	$	268,138		$	270,774		$	1,149,362		$	1,160,136
Net premiums written		247,127			241,656			1,064,507			1,044,347
Premiums earned		270,552			268,535			1,065,975			1,066,922
Operating income		33,763			26,938			32,382			117,353
Loss ratio		57.9	%		60.9	%		68.0	%		60.7	%
Expense ratio		35.4	%		36.8	%		35.9	%		35.9	%
GAAP combined ratio		93.3	%		97.7	%		103.9	%		96.6	%��
Alternative Markets:
Gross premiums written	$	171,094		$	130,199		$	827,156		$	702,717
Net premiums written		121,980			102,480			619,097			582,045
Premiums earned		158,402			149,349			612,558			608,191
Operating income		29,745			40,044			146,030			178,607
Loss ratio		73.3	%		72.7	%		72.3	%		67.6	%
Expense ratio		26.5	%		24.9	%		26.7	%		25.6	%
GAAP combined ratio		99.8	%		97.6	%		99.0	%		93.2	%
Reinsurance:
Gross premiums written	$	115,474		$	101,497		$	453,170		$	425,297
Net premiums written		110,805			96,407			430,329			401,239
Premiums earned		110,788			111,040			426,008			419,356
Operating income		16,394			38,837			83,251			129,922
Loss ratio		63.4	%		50.3	%		61.6	%		52.5	%
Expense ratio		39.7	%		39.7	%		40.4	%		41.0	%
GAAP combined ratio		103.1	%		90.0	%		102.0	%		93.5	%
International:
Gross premiums written	$	226,968		$	157,983		$	829,281		$	602,071
Net premiums written		202,174			141,730			688,919			511,464
Premiums earned		170,380			128,004			613,578			452,740
Operating income		11,876			1,503			40,084			21,174
Loss ratio		57.5	%		59.4	%		60.5	%		61.8	%
Expense ratio		40.9	%		39.1	%		40.0	%		40.4	%
GAAP combined ratio		98.4	%		98.5	%		100.5	%		102.2	%

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Operating Results by Segment (Continued)

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

	Fourth Quarter						Full Year
	2011			2010			2011			2010
Corporate and Eliminations:
Net investment gains	$	52,069		$	33,931		$	125,481		$	56,581
Interest expense		(28,195	)		(28,189	)		(112,512	)		(106,969	)
Other revenues and expenses (3)		(19,413	)		(21,282	)		(89,192	)		(90,008	)
Pre-tax gain (loss)		4,461			(15,540	)		(76,223	)		(140,396	)
Consolidated:
Gross premiums written	$	1,255,879		$	1,055,093		$	5,077,313		$	4,416,077
Net premiums written		1,090,511			918,916			4,357,368			3,850,926
Premiums earned		1,105,303			989,596			4,160,867			3,835,582
Pre-tax income		150,019			175,591			518,283			603,305
Loss ratio		62.7	%		59.8	%		63.9	%		60.2	%
Expense ratio		34.1	%		34.3	%		34.4	%		34.3	%
GAAP combined ratio		96.8	%		94.1	%		98.3	%		94.5	%

(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. 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 fourth quarters of 2011 and 2010, catastrophe losses were $15 million and $6 million, respectively. For the full years of 2011 and 2010, catastrophe losses were $153 million and $81 million, respectively. These amounts are net of reinsurance coverage and reinstatement premiums.

(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.

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Selected Balance Sheet Information

(Amounts in thousands, except per share data)

	December 31, 2011		December 31, 2010
Net invested assets (1)	$	14,559,781	$	13,918,768
Total assets		18,487,731		17,528,547
Reserves for losses and loss expenses		9,337,134		9,016,549
Senior notes and other debt		1,500,503		1,500,419
Junior subordinated debentures		242,997		242,784
Common stockholders’ equity (2)(3)		4,008,426		3,702,876
Common stock outstanding (3)		137,520		141,010
Book value per share (4)		29.15		26.26
Tangible book value per share (4)		28.44		25.56

(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 $430 million and $335 million as of December 31, 2011 and 2010, respectively. Unrealized currency translation losses were $61 million and $42 million as of December 31, 2011 and 2010, respectively.

(3) During 2011, the Company repurchased 5.2 million shares of common stock at an average cost of $30.12 per share and an aggregate cost of $157 million.

(4) 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.

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Supplemental Information

(Amounts in thousands)

	Fourth Quarter						Full Year
	2011			2010			2011			2010
Reconciliation of operating income to net income:
Operating income (1)	$	83,189		$	104,633		$	313,156		$	412,413
Investment gains, net of tax		34,737			22,218			81,647			36,874
Net income	$	117,926		$	126,851		$	394,803		$	449,287
Return on equity (2)		12.7	%		14.1	%		10.7	%		12.5	%
Cash flow from operations	$	185,036		$	60,600		$	670,279		$	451,316
Other operating costs and expenses:
Underwriting expenses	$	377,343		$	338,941		$	1,432,932		$	1,314,483
Service expenses		19,467			17,930			75,231			72,372
Net foreign currency losses (gains)		287			7,753			(1,884	)		2,126
Other costs and expenses		31,192			23,731			115,050			107,381
Total	$	428,289		$	388,355		$	1,621,329		$	1,496,362

(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.

In 2011, the Company modified its definition of operating income to include income and losses from investment funds, which had previously been excluded. Operating income for prior periods has been modified to conform to this definition. For the fourth quarters of 2011 and 2010, income (losses) from investment funds were ($13 million) and $5 million, respectively. For the full years of 2011 and 2010, income (losses) from investment funds were $11 million and ($8 million), respectively.

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

W. R. Berkley Corporation   Page 9

Investment Portfolio

December 31, 2011

(Amounts in thousands)

	Carrying Value		Percent of Total
Fixed maturity securities:
United States government and government agencies	$	976,493		6.7	%
State and municipal:
Special revenue		2,150,746		14.8	%
Pre-refunded		1,334,500		9.2	%
State general obligation		975,576		6.7	%
Corporate backed		476,273		3.3	%
Local general obligation		460,329		3.2	%
Total state and municipal (1)		5,397,424		37.1	%
Mortgage-backed securities:
Agency		1,200,848		8.2	%
Residential – Prime		228,893		1.6	%
Residential – Alt A		82,186		0.6	%
Commercial		108,419		0.7	%
Total mortgage-backed securities		1,620,346		11.1	%
Corporate:
Industrial		1,232,553		8.5	%
Financial		573,495		3.9	%
Asset-backed		315,738		2.2	%
Utilities		193,423		1.3	%
Other		114,211		0.8	%
Total corporate		2,429,420		16.7	%
Foreign government and corporate securities		888,354		6.1	%
Total fixed maturity securities (1)		11,312,037		77.7	%
Equity securities available for sale:
Common stocks		319,982		2.2	%
Preferred stocks
Financial		66,469		0.5	%
Utilities		44,685		0.3	%
Real estate		12,303		0.1	%
Total equity securities available for sale		443,439		3.1	%
Cash and cash equivalents (2)		1,178,343		8.1	%
Investment funds (2)		564,551		3.9	%
Real estate		342,905		2.4	%
Arbitrage trading account		397,312		2.7	%
Loans receivable		263,187		1.8	%
Investment in arbitrage funds		58,007		0.4	%
Net invested assets	$	14,559,781		100.0	%

(1) Total fixed maturity securities had an average rating of AA– and an average duration of 3.6 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 $58 million.

W. R. Berkley Corporation Page 10

Foreign Fixed Maturity Securities

December 31, 2011

(Amounts in thousands)

	Government		Corporate		Total
Australia	$	143,767	$	81,527	$	225,294
United Kingdom		171,828		40,983		212,811
Germany		95,277		27,593		122,870
Canada		64,479		33,274		97,753
Argentina		64,312		—		64,312
Brazil		43,939		—		43,939
Supranational (1)		37,806		—		37,806
Switzerland		—		28,668		28,668
Norway		25,833		—		25,833
Finland		—		11,605		11,605
France		—		4,611		4,611
Singapore		4,609		—		4,609
Chile		3,672		—		3,672
Uruguay		3,155		—		3,155
New Zealand		1,416		—		1,416
Total	$	660,093	$	228,261	$	888,354

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