Piper Jaffray Gives Update On W.R Berkley Following Management Meetings; Raises PT To $36

In addition to commentary regarding the Japan earthquake, Piper Jaffray's meeting with WR Berkley WRB management on Friday yielded insight toward expectations for 2011 at the company as well as the industry. Given management commentary backed Piper's investment thesis and outlook on the industry, Piper reiterates its Overweight rating on shares of WR Berkley.

Under current conditions few commercial lines carriers making money. Management remains emphatic that fewer and fewer underwriters are making a buck in today's environment. Turmoil in the markets likely change or at least accelerate the current course of pricing within the property-casualty marketplace. More specifically, management spoke to the events of Friday - Japan's earthquake.

In addition, Piper Jaffray raises its target multiple on the shares to 1.3x from 1.2x forward book value, as it anticipates investors begin to bid up shares on speculation of a more favorable outlook on returns at WR Berkley. Its revised price target is now $36 from $33.

WRB closed Friday at $30.26