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FINWIRES

Research Alert: Wrb Beats Q1 Eps But Premium Growth Slows Sharply, Raising Valuation Risk

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

WRB posted Q1 2026 operating EPS of $1.30 versus $1.05 a year ago, exceeding our $1.09 estimate and $1.14 consensus forecast. However, net written premium growth continued decelerating to just 1.3% from 9.9% in Q1 2025, raising concerns about WRB's ability to maintain above-peer top-line growth. We applaud WRB's facile underwriting model that allows capital allocation to the healthiest areas, but slowing premium trends could weigh on shares and imperil their premium valuation versus peers. Management expressed cautious optimism, noting margins "will continue to be excellent" while emphasizing effective capital management through 4.5M share repurchases in Q1. WRB's combined ratio improved modestly to 90.7% from 90.9%, with the Insurance segment deteriorating to 92.2% while Reinsurance improved to 78.6%. We note WRB's Q1 operating ROE of 21.2% remains well above the 15%-17% peer average, but challenging market conditions may prove difficult for sustaining premium growth rates.

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EMEA Oil Update: Crude Surges Above $100 as Hormuz Standoff Deepens

Crude futures climbed back above $100 per barrel on Thursday, marking a two-week high, as diplomatic efforts between the US and Iran collapsed.The Brent futures contract gained 1.3% to $103.25 per barrel. Murban closed at $103.12 on April 22 and was not trading as of the time of publishing this oil price update."Brent crude futures settled above $101 a barrel [on Wednesday], gaining 3.5% to $101.91, the highest in two weeks, amid conflicting reports about plans to reschedule peace talks between the US and Iran which have ultimately failed to materialize," Saxo Bank analysts said.Experts say that the market is now aggressively repricing for a prolonged supply crisis following the seizure of two tankers in the Strait of Hormuz by Iran and a Pentagon estimate suggesting it could take six months to clear mines from the waterway.The situation escalated further after US forces intercepted at least three Iranian-flagged vessels in Asian waters, before redirecting them from their respective positions, according to a Reuters report on Wednesday.Iranian Parliament Speaker Mohammad Bagher Ghalibaf reinforced the sense of deadlock, stating on X that reopening the Strait is "impossible" while the US maintains its naval blockade, which he labeled a "hostage-taking of the world's economy."As Brent convincingly breaks back above the $100 threshold, analysts from ING and Saxo Bank warn that the market is becoming "numb" to diplomatic noise and is instead bracing for long-term physical disruptions.However, this price spike is triggering demand destruction particularly in Europe.Rystad analysts report that European refiners are currently battling collapsing margins and a tightening crude supply, a combination that likely forces a reduction in fuel production as the Persian Gulf remains effectively throttled.With no resolution in sight, the industry expects further upside for prices even as high costs begin to erode global consumption.