W. R. Berkley Corporation Reports Second Quarter Results

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.

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.

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.

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