W.R. Berkley Corporation (WRB)

W.R. Berkley insures unusual risks through several dozen independently run units.

The structure is unusual: instead of one insurer, many small ones, each with its own market, its own underwriter and the right to decide independently whether to take a risk. The centre supplies capital, reinsurance and discipline but does not dictate whom to insure. That allows operating where a standard rate table does not apply.

Specialty insurance is more profitable than the mass market precisely because expertise sets the price. The company is known for cutting volume when rates fall below what is sensible — growth here is not an end in itself. Risks: litigation trends, natural catastrophes and reserve adequacy. The company pays dividends, including irregular special payments.