1. W. R . BERKLEY CORPORATION | A N A LY S I S | 2003 ANNUAL REPORT

2. A N A LY S I S
Look at W. R. Berkley Corporation
carefully. Analyze our numbers.
You will find a high-quality balance
sheet, leading market positions
and outstanding operating results.
A N A LY S I S
2 Chairman’s Letter
Table of Contents
10 Investments
12 Segment Overview
14 Specialty Segment
16 Regional Segment
18 Alternative Markets Segment
20 Reinsurance Segment
22 International Segment
25 Financial Data
Cover: “Analysis” by Michael Theise

3. W. R . B E R K L E Y C O R P O R AT I O N AT A G L A N C E
CORPORATE PROFILE. W. R. Berkley Corporation, founded in 1967, is one of the nation’s premier
commercial lines property casualty insurance providers. Our strengths include skilled people, disciplined
underwriting and a strong balance sheet. Each of the Company’s operating units participates in a product
area or geographic territory where it applies its professional skills to meet customer needs. Operations
are decentralized to place decision-making and accountability in the hands of people who are close to the
customer. The management of the Company is focused on the long-term. We manage to optimize the risk-
adjusted returns across the entire enterprise. The effective execution of our strategy has produced one of
the best performance records in the insurance industry.
2.0 4.0 8
3.5 7
HOW W. R. BERKLEY CORPORATION IS DIFFERENT. The Company distinguishes itself in several ways:
ACCOUNTABILITY. The business is operated with an ownership perspective and a clear sense of fiduciary
1.5 3.0 6
responsibility to shareholders. 2.5 5
PEOPLE-ORIENTED STRATEGY. New businesses are started when opportunities are identified and, most impor-
1.0 2.0 4
tantly, when the right talent is found to lead a business. Of the Company’s 27 units, 19 were developed
internally and eight were acquired. 1.5 3
RESPONSIBLE FINANCIAL PRACTICES. Risk exposures are managed proactively. A strong balance sheet, including
0.5 1.0 2
a high-quality investment portfolio, ensures ample resources to grow the business1 profitably whenever there
0.5
are opportunities to do so.
RISK-ADJUSTED RETURNS. Management company-wide is focused on obtaining the best potential returns with
0.0 0.0 0
a real understanding of the amount of risk being assumed. Superior risk-adjusted returns are generated
over the insurance cycle.
TRANSPARENCY. Consistent and objective standards are used to measure performance – and, the same
standards are used regardless of the environment.
FINANCIAL HIGHLIGHTS. W. R. Berkley Corporation delivered record results in 2003:
• Return on stockholders’ equity rose to 25.3%, the highest in nearly three decades.
• Net income reached a new high of $3.87 per share, advancing 75% over 2002.
• Net premiums written increased 35% to $3.7 billion.
• Cash flow from operations advanced 47% to $1.4 billion.
The Company achieved these results by capitalizing on increasing insurance prices and improving terms
and conditions.
Stockholders’ Equity Net Premiums Written Investments
dollars in billions dollars in billions market value – dollars in billions
3.7
1.7
6.5
2.7
1.3
4.7
1.9 3.6
0.9
3.1
3.0
1.5
1.4
0.7
0.6
‘99 ‘00 ‘01 ‘02 ‘03 ‘99 ‘00 ‘01 ‘02 ‘03 ‘99 ‘00 ‘01 ‘02 ‘03

4. FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
Years ended December 31, 2003 2002 2001 2000 1999
Total revenues $ 3,630,108 $ 2,566,084 $ 1,941,797 $ 1,781,287 $ 1,673,668
Net premiums written 3,670,515 2,710,490 1,858,096 1,506,244 1,427,719
Net investment income 210,056 187,875 195,021 210,448 190,316
Service fees 101,715 86,095 75,771 68,049 72,344
Net income (loss) 337,220 175,045 (91,546) 36,238 (37,060)
Net income (loss) per common share:
Basic 4.06 2.29 (1.39) .63 (.64)
Diluted 3.87 2.21 (1.39) .62 (.64)
Return on common
stockholders’ equity 25.3% 18.4% (11.2%) 6.1% (4.9%)
At year end
Total assets $ 9,334,685 $ 7,031,323 $ 5,633,509 $ 5,022,070 $ 4,784,791
Total investments 6,480,713 4,663,100 3,607,586 3,112,540 2,995,980
Stockholders’ equity 1,682,562 1,335,199 931,595 680,896 591,778
Common shares outstanding
(in thousands) 83,538 82,835 74,792 57,726 57,639
Common stockholders’
equity per share 20.14 16.12 12.45 11.79 10.27
RELATIVE STOCK PRICE PERFORMANCE
W. R. Berkley vs. S&P 500 over the past 20 years
percentage change
2000%
2336%
1500%
1000%
629%
W. R . B E R K L E Y C O R P O R AT I O N 500%
S&P 500
0%
2/84 2/86 2/88 2/90 2/92 2/94 2/96 2/98 2/00 2/02 2/04

5. FIVE BUSINESS SEGMENTS
W. R. Berkley Corporation’s business segments had an excellent year, each producing
strong earnings growth.
The specialty units underwrite complex and sophisticated risks, including
SPECIALTY.
general, professional and product liability coverages as well as commercial transporta-
tion business, primarily on an excess and surplus lines basis.
2003 RESULTS: Total revenues increased 44% to $1.2 billion. Pre-tax income rose 48%
to $202 million.
The regional units, which are leaders in their local markets, write commer-
REGIONAL.
cial lines coverages for small and mid-sized business firms and governmental entities.
This segment also writes surety coverages.
2003 RESULTS: Total revenues advanced 23% to $924 million. Pre-tax income increased
47% to $153 million.
The alternative markets units develop and administer self-
ALTERNATIVE MARKETS.
insurance programs and other alternative risk transfer mechanisms, and also write
specialized workers’ compensation insurance. Workers’ compensation business is the
main focus of the segment.
2003 RESULTS: Total revenues advanced 53% to $551 million. Pre-tax income was $85
million, up 36%.
The reinsurance units write reinsurance on both a facultative and
REINSURANCE.
treaty basis. In addition, the Company writes business under quota share reinsurance
agreements with several Lloyd’s syndicates and participates in several specialty niches.
2003 RESULTS: Total revenues rose 84% to $813 million. Pre-tax income increased 300%
to $60 million.
The Company’s international joint venture operates in Argentina
INTERNATIONAL.
and Asia.
Total revenues declined 25% to $71 million, due mainly to the impact of
2003 RESULTS:
currency devaluation in Argentina. Segment pre-tax income was $3 million versus a
pre-tax loss of $2 million in 2002.

6. W. R. Berkley Corporation had a record year in 2003. Return on
stockholders’ equity, earnings, net premiums written and cash flow
from operations all increased strongly. While the Company’s 2003
performance was excellent, we expect 2004 to be significantly better.
TO OUR SHAREHOLDERS:
We achieved these results by effectively executing
our strategy and capitalizing on the strongest
property casualty insurance market conditions in
more than a decade. The Company performed
well by every measure in 2003:
• Return on equity increased to 25.3% from
18.4% in 2002.
• Earnings per share advanced 75% to $3.87.
• Net premiums written rose 35% to $3.7 billion.
Approximately three-quarters of the increase
came from higher prices and one-quarter from
increased policy counts.
• The Company’s GAAP combined ratio declined
to 91.4%, well below the industry average and
the Company’s lowest combined ratio in over
20 years, reflecting a higher underwriting profit.
• Cash flow from operations increased 47% to
$1.4 billion. Record cash flow helps drive the
growth of the Company’s investable assets,
2
which ultimately will result in more future
investment income.

7. William R. Berkley
Chairman of the Board and
Chief Executive Officer
Looking ahead, we continue to focus on gen-
Each of the Company’s five business segments –
erating the highest risk-adjusted returns. We will
specialty, regional, alternative markets, reinsurance
grow the Company opportunistically and seek
and international – contributed to sharply higher
out new business whenever market conditions
earnings in 2003.
allow us to do so. We work constantly to manage
Equally important was the growth of the
the entire enterprise, evaluating risk and remaining
Company’s investment portfolio to $6.5 billion
aware of uncertainty, always seeking the maxi-
at the end of 2003, up from $4.7 billion a year
mum potential returns from every opportunity.
earlier. Invested assets at the end of 2003 included
$1.4 billion of cash and cash equivalents, reflect-
The
ing our belief that interest rates will rise within the W. R. BERKLEY CORPORATION’S STRATEGY.
Company performed well in 2003 because man-
next year due to expanding federal budget deficits
agement made the right decisions to position the
and a modestly improving economy. We expect
business for profitable growth, and made these
the portfolio to generate more income in the next
decisions early. These decisions have allowed the
few years as interest rates rise and as we believe
Company to write more business at a time of
it appropriate to invest the Company’s funds at
outstanding industry profitability and, in doing
more attractive longer-term rates.
so, grow rapidly and generate returns better than
Looking back, the past three years have
those of our insurance industry peers. During
been an exceptional period for W. R. Berkley
2003, to support its growth, the Company raised
Corporation. As net premiums written have
3
additional capital and expanded several operating
advanced from $1.5 billion in 2000 to $3.7 billion
units while starting three new units.
in 2003, the Company has moved up the industry
Good management is not just a matter of pro-
ladder to become one of the 15 largest commer-
ducing higher earnings and better returns. Good
cial lines property casualty insurance writers in
management also requires a clear understanding
the United States.

8. of the factors behind those earnings. It requires a Company obtained price increases of 20% or
well-thought-out strategy and effective planning more during 2003, accompanied by significant
to deal with the opportunities and challenges on improvements in terms and conditions. The busi-
the horizon in order to continue to improve a ness written by the Company during the year
company’s performance. In addition, it requires a not only contributed to profits in 2003, but
constant understanding of, and focus on, the risks should contribute in 2004 as well.
inherent in a company’s day-to-day business, while The last previous “hard” insurance market
at the same time being conscious of the uncertain may offer some perspective on the industry’s out-
environment that is part of contemporary society. look today. The last hard market began in 1985,
The Company’s strategy, which has consis- and prices continued to increase until 1988. Even
tently produced some of the industry’s best results, though prices then plateaued, returns remained at
is based on a philosophy of decentralized opera- attractive levels through 1994.
tions that places decision-making as close to the As of the end of 2003, in the wake of two
customer as possible. Through this approach, years of sizable price increases, the market had
the Company is able to respond quickly to the recovered to approximately its 1990 price levels.
constant changes in its markets and take advan- With current pricing, we see the prospect of con-
tage of the opportunities afforded by those tinued excellent returns at least into 2006. Given
changes. We empower our managers and hold today’s market conditions, this is the time to access
them accountable. and write as much good business as possible.
Over the past 20 years, we have grown the W. R. Berkley Corporation’s strategic approach
Company’s book value by more than 1,400%. and its high-quality balance sheet have enabled us
The Company’s excellent business performance, to do just that. The Company has written more
not only in 2003 but over longer periods as well, business and grown profitably even as a number
is also reflected in the price of its common stock. of competitors have been constrained by unre-
W. R. Berkley Corporation’s stock price has solved past problems, including the inadequate
appreciated 2,336%, not including dividends, reserving of prior-year losses. According to a
during the past 20 years, well ahead of the recent report by Standard & Poor’s, the property
629% price appreciation of the Standard & casualty industry is under-reserved by approxi-
Poor’s 500 Index. mately $60 billion, impinging upon the ability
of some insurers to write new business.
WRITING PROFITABLE BUSINESS. Insurance industry Adequate reserves are key to maintaining a
market conditions were robust in 2003 for the strong balance sheet, which in turn enables a
second consecutive year. In many lines, the company to write more business. We address
4
reserving issues proactively and therefore believe
the Company is well positioned relative to the
industry. During 2003, as the Company wrote
more business, we increased our reserves to cover
the potential losses associated with that business.

9. W. R. Berkley Corporation’s strategy, which has consis-
tently produced some of the industry’s best results, is based
on a philosophy of decentralized operations that places
decision-making as close to the customer as possible.
By year-end, reserves were $4.2 billion, up 32% responsibilities of insurers and their insureds are
from $3.2 billion at the end of 2002. During under constant revision by the courts. Inflation in
that same period, the Company’s policy counts general, and medical costs in particular, continue
increased by only 7%. The Company’s paid-to- to push claims costs higher.
incurred-loss ratio decreased from 53% in 2002 These issues have a different impact on each
to 37% in 2003, remaining well below the insurance company. Successful companies know
industry average. A lower ratio indicates a posi- how to anticipate and deal with the inevitable
tive loss development trend. industry challenges and continually refine their
The Company has positioned itself favorably strategies to keep pace with evolving and not
in other ways as well. By exercising care in the always predictable markets. They know how
selection of reinsurers and insisting on adequate to choose the right business lines in which to
security, we have largely avoided the problem participate. They are able to minimize the impact
of uncollectible reinsurance, a major challenge of negative trends and events that are beyond
for some of our competitors in 2003. In addition, their control and optimize the opportunities
the Company has no material asbestos-related available to them when the market environment
liabilities, nor does it use derivatives or have is positive. Successful insurance companies are,
any “off-balance-sheet” financing. We strive most importantly, always looking ahead, assessing
to maintain maximum transparency in our risk and conscious of uncertainty.
financial statements. Since the Company’s founding, we have
During 2003, the Company issued $350 focused on identifying and participating in what
million of debt to support its increasing growth. we believe will be the most profitable areas of the
This additional capital, in combination with the business on a risk-adjusted basis, recognizing that
Company’s high-quality balance sheet, enabled doing so is critical to the Company’s success. The
us to write all the business we felt appropriate Company’s operating units take part in market
at attractive rates during 2003. We believe sectors that demand a high level of underwriting
W. R. Berkley Corporation has the financial skill and offer excellent opportunities for profit.
resources and experienced personnel to continue We generally avoid commodity-type business in
to write all the good business that will be avail- which competition is more intense and margins
able to us in 2004 in our market segments. are generally lower.
In all its markets, W. R. Berkley Corporation
CHOOSING THE BEST SECTORS. The insurance indus- is known as a high-quality insurer that has the
try is long-term in nature. Companies receive commitment, infrastructure and depth of financial
premiums in return for a contractual promise to resources to understand the needs of customers
5
pay future claims that are uncertain in their
timing and amount.
Industry challenges, such as natural disasters
and periods of inadequate pricing, are endemic
and are faced by all insurers. In addition, the

10. In recent years, we have taken a series of actions to
capitalize on opportunities while dealing with challenges
and deliberately refining where and how the Company
does business. Those actions are paying off today.
and meet its obligations to them. Our risk-bearing The Company’s regional group writes com-
companies have regularly maintained “A” or mercial lines for small and mid-sized businesses
better A.M. Best Co. ratings for more than 25 and governmental entities. This exclusive focus
years. Long-term relationships with brokers and on commercial lines has led to significant profit
agents allow the Company to compete effectively improvement, reflecting the impact of a favorable
with its largest peers. Even in today’s transaction- market environment in combination with the
obsessed world, successful agents and brokers group’s enhanced ability to service customers. In
recognize the importance of commitment. 2003, the regional segment generated $153 mil-
In managing the Company, we allocate capital lion of pre-tax income and had an 87.5% GAAP
to those insurance lines and those business units combined ratio, a remarkable performance.
where we see the best potential risk-adjusted We recently restructured the Company’s pri-
returns. We seek to apply the Company’s flexi- mary surety business by combining four separate
bility, responsiveness, expertise and strong rela- operations into one unit and placing that unit
tionships to competitive advantage in each of its within the regional segment as of 2004. The
market sectors. Our goal is to build value for new unit principally writes bonds for mid-sized
shareholders by outperforming the Company’s contractors. Although surety pricing has been
peers throughout the insurance market cycle. insufficient for the past several years, there has
recently been some improvement. We seek to
In recent years, we have taken capitalize on that improvement by maintaining a
STRATEGIC ACTIONS.
a series of actions to capitalize on opportunities strong, highly-focused surety operation with supe-
while dealing with challenges and deliberately rior underwriting and distribution capabilities.
refining where and how the Company does busi- The alternative markets segment continued its
ness. Those actions are paying off today. excellent growth with good profitability in 2003.
Since 2000, the Company has invested signifi- This segment is, in part, countercyclical to the
cantly in its specialty group, enabling the group other segments. Customers often turn to self-
to grow rapidly in a period which has presented insurance and other alternative markets when
great opportunity. The specialty group was the primary markets charge higher premiums
W. R. Berkley Corporation’s third largest segment for the same or reduced levels of coverage. The
just three years ago and is now the largest as well Company’s alternative markets units provide both
as the most profitable segment. The operating fee-based services and risk-bearing insurance to
units in this segment write complex and sophis- meet the full range of needs of our alternative
ticated coverages that are often tailored to the market customers. In addition, the Company has
customer’s particular needs. In 2003, the developed one of the nation’s leading capabilities
6
Company formed a new unit, Admiral Excess
Underwriters, to specialize in underwriting
excess casualty coverages, one of the few areas
of the specialty market in which we did not pre-
viously participate.

11. in managing state workers’ compensation residual other financial products in Hong Kong. It is
market mechanisms. In recent years, the Company exploring additional opportunities for profitable
has also leveraged its expertise to start new expansion in Asia and Latin America.
units, such as Preferred Employers Insurance
Company, which specializes in providing workers’ We continue to develop new
NEW VENTURES.
compensation coverage for small, owner-managed businesses as platforms to support the Company’s
businesses in California. Preferred has grown long-term growth. While not yet significant con-
rapidly during the past two years in response to tributors to results, these businesses offer excellent
the current favorable pricing environment, writing prospects for the future. Our financial results fully
$163 million of net premiums in 2003. The reflect the startup expenses of these ventures.
unit’s tight geographical and product focus In 2003, in addition to launching Admiral
enables it to respond quickly to changes in the Excess Underwriters, the Company formed
California legislative and claims environment. W. R. Berkley Insurance (Europe), Limited in
In the reinsurance segment, during the past London. The new unit is owned 80% by
two years we have expanded the Company’s W. R. Berkley Corporation. The unit is focused
facultative business and have withdrawn from initially on writing professional indemnity
what we perceive to be commodity-type lines in insurance. Late in the year, we formed Berkley
the treaty operations. Results have been dramatic. Risk Solutions, Inc., which provides insurance-
The facultative business, led by an extremely based as well as reinsurance-focused financial
experienced and disciplined management team, solutions for insurance companies and self-insured
wrote $286 million of net premiums in 2003 ver- entities in the U.S. and other markets.
sus $62 million in 2001. The reinsurance group did The Company’s other newer ventures
well in 2003 even though results were dampened continue to make good progress. B F Re
by the need to add to reserves for prior business Underwriters, LLC, which provides casualty
written in the treaty operation. Segment earnings facultative reinsurance on a direct basis, wrote
are expected to continue to improve as this adverse $56 million of net premiums in 2003, its first
development from prior years is eliminated. full year. Berkley Medical Excess Underwriters,
The Company’s international joint venture LLC, which provides rational capacity to the
is the smallest of the five segments. It returned medical malpractice insurance market, was
to profitability in 2003, overcoming challenging established at the end of 2001 and wrote $49
economic conditions in Argentina. The venture million of gross premiums in 2003.
also has operations in the Philippines and recently
began distributing savings, life insurance and MANAGEMENT TEAM. We have an unusual breadth
7
and depth of talented people at the corporate
level and throughout the Company’s operating
units. During the past two years, to support the
Company’s growth, we have been selectively
adding to staff in order to strengthen the

12. Company’s risk management capabilities and Favorable conditions in the Company’s
bring further depth to our overall management major lines are expected to continue. While the
team in strategic areas. overall level of rate increases is abating, the trend
Robert W. Gosselink joined the Company in remains positive as prices continue to rise more
2003 as Senior Vice President – Insurance Risk than “loss cost” inflation. As in the previous hard
Management. Jeffrey E. Vosburgh joined the cycle, we anticipate at least another two years of
Company as President of the newly-formed strong pricing, even if prices go up only modestly
Berkley Risk Solutions unit, and Stuart Wright on an inflation-adjusted basis from where they
came on board as Chief Executive Officer of the are today. The Company will continue to write
newly-formed London operation, W. R. Berkley all the good business it can in this environment.
Insurance (Europe). All three of these individuals W. R. Berkley Corporation’s excellent results –
are talented, experienced insurance industry exec- not only in 2003, but also over longer periods –
utives. We are pleased to welcome them and the speak to the dedication and skills of its people. I
skilled teams they have assembled. want to personally thank the Company’s employ-
Robert C. Hewitt, formerly Senior Vice ees, brokers, agents, customers and shareholders
President – Risk Management, was named for their support. W. R. Berkley Corporation’s
Senior Vice President – Alternative Markets, dedicated people worldwide remain committed to
succeeding H. Raymond Lankford, who retired meeting the needs of customers and, by doing so,
and continues as a consultant to the Company. generating superior returns for shareholders. It is
Kevin W. Nattrass, formerly Senior Vice the responsibility of management to evaluate these
President of Acadia Insurance Company, became returns not just in absolute dollars, but also on
President and Chief Operating Officer of Berkley a risk-adjusted basis. We believe the Company’s
Mid-Atlantic Group. 2003 results are even better when examined from
that perspective.
OUTLOOK. We are confident of another outstanding We are extremely pleased with the Company’s
year in 2004. The Company’s operations are con- performance in 2003. We have never been more
centrated in product lines that have experienced confident or excited about W. R. Berkley
some of the insurance industry’s largest price Corporation’s prospects for the future.
increases. Furthermore, W. R. Berkley Corporation
primarily writes casualty insurance, an area where Sincerely,
prices continue to increase.
William R. Berkley
Chairman of the Board and
Chief Executive Officer
March 30, 2004
8

13. INSPECTION
We keep the insurance market
under the microscope. In each
of our businesses, we constantly
search for opportunities that
offer superior rewards with risks
that can be properly evaluated.
INSPECTION
9

14. INVESTMENTS
Eugene G. Ballard
Senior Vice President
James G. Shiel
Chief Financial Officer and Treasuer
Senior Vice President
Investments
he portfolio increased significantly in 2003, totaling
T $6.5 billion at year-end, up from $4.7 billion at the
end of 2002. This increase primarily reflected the
investment of cash flow from operations as well as the
proceeds from two financings totaling $350 million,
in addition to market appreciation.
In 2003, the portfolio generated $210 million of
net investment income, up 12% from 2002 despite
The effective management of our investment assets is
the impact of low interest rates and the shortened
portfolio duration.
an integral part of our overall enterprise management.
The portfolio is managed conservatively to support
the Company’s ability to write insurance. We have three
The investment portfolio, which has more than doubled
main investment goals: achieve favorable risk-adjusted
in size during the past four years, is an important driver returns; avoid investment exposures that might impair
the Company’s ability to expand its insurance business;
of future earnings. and maintain the duration of the fixed income portfolio
within one year of the duration of the Company’s lia-
bilities, including policy claims and debt obligations.
FIXED INCOME INVESTMENTS. At year-end, the
portfolio was invested 88% in fixed income securities,
including cash and cash equivalents. Low interest rates
have created a challenging fixed income investment
10
environment. Our current view is that interest rates
will move higher within the next year due to various
trends, including expanding federal budget deficits
and a weak dollar. As a result, we have recently been
investing new monies primarily in short-term securities

15. Paul J. Hancock
Senior Vice President
Robert W. Gosselink Ira S. Lederman
Chief Corporate Actuary
Senior Vice President Senior Vice President
Insurance Risk Management General Counsel and Secretary
cash equivalents), 34% in municipal securities, 17% in
Fixed Income Portfolio Distribution
mortgage-backed securities, 9% in corporate bonds
Foreign Bonds U.S. Government and
Government Agency
(including a modest position in high-yield bonds) and 4%
in foreign bonds.
4%
9%
Corporate Bonds 11%
The weighted average credit rating of the fixed income
17% portfolio was “AA” at year-end, and the duration was 4.1
Cash and Cash
25%
years, approximately one year shorter than the duration
Equivalents
of the Company’s liabilities.
34%
ALTERNATIVE INVESTMENTS. The portfolio includes vari-
Mortgage-backed State and Municipal
ous alternative investments which offer opportunities for
Securities
more favorable returns while diversifying risk. These
investments, which are managed by outside professionals,
represented 12% of the overall portfolio at year-end.
to lessen the portfolio’s exposure to the impact of
Merger arbitrage has been a mainstay of the alternative
anticipated rate increases.
portfolio for more than 15 years. Although we have scaled
The Company had $1.4 billion of cash and cash
back the portfolio’s allocation to this area for the past two
equivalents at year-end. Although this cash position
years because of modest merger and acquisition activity,
affected the level of investment income in 2003, we
we are optimistic that the recent sharp increase in merger
believe the Company will be well rewarded in the long 120
activity will create renewed opportunities.
run when interest rates increase and we are able to 100
During the past two years, we have increased the
invest at more attractive yields. In the fall of 2003, the 80
portfolio’s investments in other income-producing areas
Company invested several hundred million dollars in 60
where we see attractive returns, including high dividend
intermediate-term municipal bonds when bond prices 11
40
common stocks, convertible securities arbitrage and real
declined temporarily and yields suddenly became espe- 20
estate investment trusts (REITs). In 2003, the portfolio
cially attractive. We remain alert to other opportunities 0
made its first direct investment of $50 million in commer-
to capture higher rates.
cial real estate. The total allocation to the real estate sector,
At year-end, the fixed income portfolio was invested
including REITs, was $254 million at year-end.
36% in U.S. Government securities (including cash and

16. 825.000 40
721.875 35
618.750
S E G M E N T O V E RV I E W
30
515.625 25
412.500 20
309.375 15
206.250 Each of our five business segments is comprised of individual operating units that serve a
10
market that is defined by geography, products or services, or types of customers. Our growth
103.125 5
is based on meeting the needs of customers, maintaining a high-quality balance sheet and
0.000 0
allocating capital to our best opportunities.
825.000
721.875
618.750
515.625
412.500
2003 Revenues versus Profits dollars in millions
309.375
206.250
202
Specialty Specialty
1,188
103.125
153
Regional Regional
924
0.000
Alternative Alternative 85
551
60
Reinsurance Reinsurance
813
71
International International 3
2003 Revenues 2003 Profits
2003 Revenues versus Profits percent
40
33
Specialty Specialty
26 30
Regional Regional
16 17
Alternative Alternative
23 12
Reinsurance Reinsurance
1
2
International International
2003 Revenues 2003 Profits
12

17. S T R AT E G Y
W. R. Berkley Corporation’s long-
term strategy of decentralized
operations helps drive results.
Each of our operating units is
empowered to identify and
respond quickly to customers’
needs.
STRATEGY
13

18. S P E C I A LT Y S E G M E N T
James S. Carey Thomas M. Kuzma
William F. Murray
Admiral Insurance Nautilus Insurance Company
Admiral Excess
Company
Underwriters Division
W. Robert Berkley, Jr.
Senior Vice President
he specialty insurance group is the Company’s OPERATING UNIT RESULTS. The segment has nine
T largest and most profitable segment. Total revenues specialty units, including two that were started in
increased 44% in 2003, while pre-tax income 2003, each serving a particular market.
rose 48% and return on equity increased to 25%. Admiral Insurance Company, one of the leading
These excellent results were driven by strong surplus lines carriers in the industry, specializes in
pricing as well as improved terms and conditions. underwriting difficult-to-place, moderate-to-high-
The Company’s specialty units underwrite complex risk classes that other carriers are unwilling or unable
and sophisticated third-party liability risks, mainly to consider. It has been consistently successful and
on an excess and surplus lines basis. These include enjoyed another outstanding year in 2003, increasing
general, professional and product liability coverages its net premiums written by 29%.
as well as commercial transportation business. In In 2003, Admiral formed a new division, Admiral
each of its lines, the specialty group emphasizes a Excess Underwriters, to specialize in underwriting
disciplined underwriting approach, expanding its excess casualty coverages, one of the few specialty
business when prices and terms and conditions are lines in which W. R. Berkley Corporation did not
most attractive. previously participate.
In 2003, as the standard markets continued to Nautilus Insurance Company, which continued
withdraw from writing what was traditionally con- to achieve significant growth, underwrites small-to-
sidered non-standard lines, the specialty group wrote medium sized commercial property and casualty risks,
more business and successfully capitalized on higher predominantly on an excess and surplus lines basis.
prices. The specialty insurance market, where our It increased its net premiums written by 49% and
skills give us a competitive advantage, represents a produced a 25% return on equity in 2003, capitaliz-
strong growth opportunity for W. R. Berkley ing on price increases as well as the ongoing flow of
Corporation in the current environment. Key to the business coming into the surplus lines market from
14
specialty group’s success, not only in 2003 but also the standard market.
going forward, are the intellectual capital of its peo- Carolina Casualty Insurance Company was an
ple, the substantial financial resources of the organi- outstanding performer, increasing its net premiums
zation and the group’s strong relationships with its written by 16% and generating one of the highest
distribution systems. returns on equity among W. R. Berkley Corporation’s

19. 2003 2002 Gross Written Premiums by Line
Segment Data Dollars in Millions
$3,128 $2,271
Total assets Other
1,188 827
Total revenues 19%
202 136
Pre-tax income
Directors & 6% 52% General Liability
88% 89%
GAAP combined ratio Officers
11%
25% 21%
Return on equity
12%
Excludes realized investment gains and loses.
Commercial
Transportation
Professional Liability
Richard P. Shemitis Alfred Schonberger Stuart Wright
Armin W. Blumberg Douglas J. Powers J. Michael Foley
Vela Insurance Clermont Specialty W. R. Berkley Insurance
Carolina Casualty Monitor Liability Berkley Medical Excess
Services, Inc. Managers, Ltd. (Europe), Limited
Insurance Company Managers, Inc. Underwriters, LLC
27 operating units. Carolina specializes in commercial Berkley Medical Excess Underwriters, LLC writes
transportation insurance, primarily involving long- medical malpractice excess insurance and reinsurance
haul trucking and public automobile risks. The for hospitals. The unit had a strong year, increasing its
company continues to work with its agents and gross premiums written to $49 million in 2003, its
brokers to position itself as a preferred commercial first full year of operation, and continues to establish
transportation market. its position as a market leader.
Vela Insurance Services, Inc. writes excess and In July 2003, W. R. Berkley Corporation
surplus lines with a primary focus on contractor and expanded its specialty operations to the United
product liability coverages. Vela increased its net Kingdom by forming W. R. Berkley Insurance
premiums written by 44% in 2003 and generated (Europe), Limited, which is owned 80% by
a 40% return on equity. W. R. Berkley Corporation and 20% by Kiln plc.
Monitor Liability Managers, Inc. writes directors The new company is initially writing professional
and officers, lawyers professional and employment indemnity insurance, with additional lines to be
practices lines. It continued to perform well in 2003, added. Net premiums written were $43 million in
delivering a 35% return on equity despite the con- the unit’s partial first year.
stantly evolving complexities of its line of business.
While most of the units in the specialty group SPECIALTY SEGMENT OUTLOOK. Specialty insurance
serve customers nationwide, Clermont Specialty markets have remained strong in the opening months
Managers, Ltd. has a specific geographic focus. of 2004, and we believe these favorable market
Clermont writes package insurance programs for conditions will continue. As a leader in specialty
residential condominium and co-op associations as insurance, we have the people, the capital and the
well as for upscale restaurants in the metropolitan distribution relationships to establish an even more
New York City area, where it has well-established significant presence in the market segments in which
15
relationships with its distributors. Clermont increased we participate.
its net premiums written by 28% in 2003 and contin-
ued to increase its profits.

20. REGIONAL SEGMENT
Kevin W. Nattrass
Bill Thornton Berkley Mid-Atlantic Group
Acadia Insurance Company
Robert P. Cole
Senior Vice President
T
he regional segment had an outstanding year, commercial lines units, withdrawing from personal
achieving a record 28% return on equity. The lines insurance, re-underwriting all our business to
segment has grown rapidly and has delivered improve pricing and tighten terms, and combining
excellent profitability since we took a series of actions, the Company’s various primary surety operations
beginning in 1999, to restructure the business and into a single unit. Because we restructured proactively,
focus on the best opportunities. the regional segment has been well positioned to
These actions, coupled with the segment’s ongoing capitalize on market opportunities. We have, at the
efforts to deliver superior service to customers and same time, been able to provide agents with the
excellent financial results to shareholders, enabled steady source of capacity they need even in a period
W. R. Berkley Corporation to become one of the best of mergers and withdrawals by many other regional
performers in the entire regional property casualty commercial lines carriers.
industry in 2003. The segment’s revenue increased
23% in 2003, reflecting higher prices in a strong OPERATING UNIT RESULTS. The four commercial lines
market as well as a modest increase in policy count. units – Acadia Insurance Company, Berkley Mid-
Pre-tax operating income advanced 47%. Atlantic Group, Continental Western Group and
The segment consists of four commercial lines Union Standard Insurance Group – serve small and
units as well as the Company’s primary surety unit. mid-sized business and governmental entities primarily
Operations are decentralized, placing decision-mak- in 32 states. Each is a multi-line company, offering
ing in the hands of people who are close to the cus- an array of commercial lines insurance products and
tomer. We believe the growing success of the loss control services through a select group of agents.
regional group reflects not only the skills of our peo- Acadia writes commercial business in Maine,
ple, but also the group’s focus on smaller and mid- New Hampshire, Vermont, Massachusetts,
sized commercial lines customers, its strong local Connecticut, and central and northern New York. In
16
presence in each of its markets, and the ability of addition to writing a full line of standard commercial
the operating units to identify and respond rapidly property casualty products, it writes specialty prod-
to customers’ needs. ucts for companies in the region, including lumber
Since 1999, we have realigned the segment by mills, timber haulers, and marine business. Acadia had
combining 10 regional units into the current four another standout year, achieving strong profitability,

21. 2003 2002 Gross Written Premiums by Unit
Segment Data Dollars in Millions
$1,993 $1,591
Total assets Union Standard
924 750
Total revenues 17%
153 104
Pre-tax income
29% Acadia
88% 92%
GAAP combined ratio
28% 20%
Return on equity
40% 14%
Excludes personal lines business and realized investment gains and loses.
Continental
Western
Berkley
Mid-Atlantic
Craig W. Sparks
Bradley S. Kuster Paul J. Fleming
Union Standard
Continental Western Group Monitor Surety Managers, Inc.
Insurance Group
joined the ranks of superior performers in the regional
36% growth in net premiums written and an 87%
GAAP combined ratio. Continuing its expansion, group. Union Standard registered strong revenue and
Acadia recently opened new branch offices in earnings improvement, and its combined ratio of 87%
Connecticut and upstate New York, firmly establishing was the best in the unit’s 28-year history. Union
itself as one of the premier commercial lines carriers Standard is streamlining the way it does business
in the Northeast. through investments in imaging technology and
Berkley Mid-Atlantic Group’s marketing territory improved workflow processes. These technologies
spans the Atlantic coast from Pennsylvania to South and processes will over time be adopted by the other
Carolina, including the District of Columbia. The regional units as appropriate.
unit reported solid results in 2003, increasing its net Contract bonds and court and commercial bonds
premiums written by 13%. With the recent strength- are written through Monitor Surety Managers, Inc.,
ening of its management team, we believe the unit is which has offices in the East, Midwest and South
poised for excellent results in 2004. and maintains a primary focus on providing surety
Continental Western, the largest of the regional bonds to mid-sized contractors. The unit wrote $13
companies, serves the insurance needs of business and million of net premiums in 2003, a sizable increase
farm owners and governmental entities throughout over 2002, and had a profitable year.
the Midwest and Pacific Northwest. It enjoyed another
outstanding year, achieving an 84% combined ratio REGIONAL SEGMENT OUTLOOK. The regional group has
together with strong profit and revenue growth. delivered excellent results each of the past two years
Continental Western offers a number of specialty and, in the process, has become one of the nation’s
products, including property casualty insurance pack- premier regional commercial lines carriers. During
ages for fire departments throughout the Midwest this period, the group has focused on improving its
and products covering farm equipment dealers, market position while remaining disciplined in its
17
grain elevators, municipalities and collector cars. It underwriting standards. We anticipate another year
attained good growth in each of these areas in 2003. of profitable growth in 2004 and remain dedicated
In the South, Union Standard writes business in to building an organization that can succeed in all
eight states from Alabama to New Mexico. The year market conditions.
was one of significant improvement for the unit, as it

22. A LT E R N AT I V E M A R K E T S S E G M E N T
Mark C. Tansey Melodee J. Saunders
Kenneth R. Hopkins Linda R. Smith
Berkley Risk Administrators Midwest Employers
Berkley Risk Administrators Preferred Employers
Company, LLC Casualty Company
Company, LLC Insurance Company
T
he alternative markets segment continued to build operations, the segment participated in the favorable
on its unique expertise in workers’ compensation pricing environment for traditional insurance products.
insurance, delivering its third consecutive year of
excellent results. Total revenues increased by 53% OPERATING UNIT RESULTS. Each alternative markets
over 2002 while pre-tax income advanced 36%. unit has a particular business focus, and each achieved
Return on equity reached 25%. superior returns in 2003.
We have built the alternative markets segment Berkley Risk Administrators Company, LLC
opportunistically over the past two decades, adding (BRAC) – a third-party administrator and program
new units when we have identified promising markets manager that designs, implements and manages alter-
in which we can hire talented people and apply our native risk financing programs and self-insurance
skills to competitive advantage. The segment currently pools – had an outstanding year, increasing its service
provides workers’ compensation insurance products fee revenues by 12% in 2003 and further improving
and fee-based insurance services through four major its net income.
areas of business: BRAC continued to expand its business of admin-
• Providing workers’ compensation insurance on an istering state workers’ compensation assigned risk
excess basis for group and individual self-insureds plans, a growth area, by successfully being awarded
and on a primary basis in selected states; contracts in three additional states in 2003. Equally
• Managing state workers’ compensation residual important, BRAC provides businesses, governments,
market mechanisms; educational institutions, tribal nations and non-profit
• Providing bundled and unbundled fee-based entities with various alternative market services. Over
services to help corporate, government, non-profit the last few years, BRAC has steadily expanded the
and other entities develop and administer self- geographic reach of its services and now has clients
insurance programs and utilize other alternative on the East and West coasts and in the Southwest
18
means of financing or transferring risk; and as well as in the Midwest, its traditional base. In
• Writing workers’ compensation insurance for small, 2002, the Company formed a risk-bearing company,
owner-managed businesses in California. Nonprofits Insurance Company, which gives BRAC
In 2003, the segment continued to capitalize further flexibility to provide insurance products and
on opportunities to grow its fee-based business by related fee-based services.
providing alternative mechanisms to help clients Midwest Employers Casualty Company (MECC)
control costs. In addition, through its risk-bearing increased its net premiums written by 42%, with

23. 2003 2002
Segment Data Dollars in Millions
$1,505 $1,198
Total assets
551 359
Total revenues
85 63
Pre-tax income
93% 96%
GAAP combined ratio
25% 21%
Return on equity
Excludes realized investment gains and loses.
Joe W. Sykes
Key Risk Insurance Company
Robert C. Hewitt
Senior Vice
President
strong earnings. A national provider of excess workers’ Revenues by Unit
compensation coverage to individual employers and Preferred Employers
groups above their self-insured or retained coverages, 23%
15%
Key Risk
MECC has a unique ability to identify desirable
workers’ compensation risks. Through its under-
writing and pricing process, the company gains an 23% Berkley Risk
39%
understanding of each risk’s historical and prospective
Midwest Employers
frequency and severity performance against its peers,
and then applies that knowledge to identify preferred
risks with the least propensity to cause loss. This
sophisticated information provides MECC with a
competitive advantage in that few if any competitors Georgia. Both units did well in 2003, increasing their
have similar capabilities. In 2004, MECC plans to net income and generating excellent returns on equity.
enter the large deductible area to complement its KRIC underwrites workers’ compensation products
other businesses. and recently created a healthcare division to capitalize
Preferred Employers Insurance Company has been on the favorable market conditions in this industry
very successful in providing workers’ compensation sector. KRMS is a fee-based service organization,
coverage for small business owners in the state of developing and administering workers’ compensation
California, writing $163 million of net premiums in programs for self-insureds and insurance carriers.
2003. Preferred commenced operations in 1998 on
a modest scale and has grown significantly during ALTERNATIVE MARKETS SEGMENT OUTLOOK. Based on
the past two years, generating superior returns in a current trends and market conditions, the alternative
favorable pricing environment. The unit continues to markets segment is well positioned for another year of
19
work with a select group of brokers who understand profitable growth in 2004. Our alternative markets
the firm’s philosophy and business objectives. units have not only grown their fee-for-service rev-
In the Southeast, Key Risk Insurance Company enues in the current hard market, but have also lever-
(KRIC) and its affiliate, Key Risk Management aged the current pricing environment to achieve solid
Services, Inc. (KRMS), provide workers’ compensa- returns in their risk-bearing operations. We anticipate
tion insurance products and services for employers continued growth in both areas in 2004, driving
in North Carolina, South Carolina, Virginia and another year of outstanding overall performance.

24. REINSURANCE SEGMENT
Tom N. Kellogg Roger J. Bassi
Daniel L. Avery Craig N. Johnson
Signet Star Re, LLC Fidelity & Surety Reinsurance
B F Re Underwriters, LLC Signet Star Re, LLC Managers, LLC
T he reinsurance segment quadrupled its pre-tax and conditions improved. Facultative ReSources,
income in 2003 with strong revenue growth in which writes business through intermediaries, took
both its facultative and treaty businesses. advantage of better pricing and improved terms and
Facultative net premiums written more than doubled conditions in workers’ compensation reinsurance to
over 2002. substantially increase its book of business in that area.
In reinsurance, as in the other segments, we suc- B F Re Underwriters, which we formed in late 2002
cessfully implemented our strategy of writing as much to write business primarily on a direct basis, generated
good business as possible in the current positive mar- $56 million of net premiums written in 2003, its first
ket environment. The reinsurance segment’s operating full year.
units not only capitalized on price increases and Overall, the segment’s facultative reinsurance net
improved terms and conditions in 2003, but also grew premiums written increased to $286 million in 2003
their certificate counts during the year. from $140 million in 2002. In more than doubling
The segment’s facultative operations performed their premiums, the facultative units capitalized on a
especially well, generating gross premiums that, for very strong market, as some competitors were forced
the first time, equaled those in the treaty business. to withdraw due to company-specific problems. While
We believe the Company’s Facultative ReSources, Inc. growing dramatically during the past two years, the
unit was the largest broker facultative reinsurance Company’s facultative units are prepared to cut back
market in the U.S. in 2003. as necessary when the market softens and fewer
opportunities are available.
OPERATING UNIT RESULTS. The segment utilizes The segment’s treaty reinsurance business is
the risk-bearing capabilities of Berkley Insurance managed by Signet Star Re, LLC, which also enjoyed
Company (BIC), which carries an A.M. Best Co. strong growth, increasing its net premiums written
rating of “A (Excellent)” and a Standard & Poor’s to $324 million in 2003 from $227 million in 2002.
20
rating of “A+ (Superior).” Business is written on During the past three years, we have re-engineered
behalf of BIC by various affiliated underwriting Signet Star Re by re-staffing the unit and developing
management units, which have a depth of under- a strong underwriting culture. These efforts are now
writing expertise and excellent distribution. paying off with significant improvement in results.
In the facultative area, Facultative ReSources, Inc. Most treaty reinsurers remained disciplined in
and B F Re Underwriters, LLC both had very good their underwriting during 2003 even though there
years, writing more business as prices and terms was ample industry capacity for well-priced business.

25. 2003 2002
Segment Data Dollars in Millions
$3,415 $2,431
Total assets
813 442
Total revenues
60 15
Pre-tax income
99% 107%
GAAP combined ratio
10% 4%
Return on equity
Excludes alternative markets reinsurance and realized investment gains and loses.
Jeffrey E. Vosburgh
John S. Diem Berkley Risk Solutions, Inc.
Berkley Underwriting
Partners, LLC
James W. McCleary
Senior Vice President and
President and
CEO of Facultative ReSources, Inc.
As a result of this market discipline, Signet Star Re was Gross Written Premiums by Unit
Lloyd’s
able to identify and capitalize on many opportuni-
ties. The unit’s business is focused primarily on
24%
excess of loss casualty coverages, where we see the 34% Signet Star Re
best profit potential. 8%
Berkley
As its name implies, Fidelity & Surety Reinsurance Underwriting
Partners 6%
Managers, LLC writes fidelity and surety coverage, 28%
although it is currently writing only limited amounts B F Re Facultative
ReSources
of business until weakness in the surety reinsurance
market is resolved.
Another of the reinsurance units, Berkley
Underwriting Partners, LLC (BUP), utilizes program REINSURANCE SEGMENT OUTLOOK. We anticipate
administrators to write specialty insurance products. another year of profitable growth in the reinsurance
It emphasizes small-to-medium sized opportunities segment even though the Company plans to write
where the administrator has unique product expertise less business through its quota share reinsurance
and BUP provides the centralized operating platform. agreements with Lloyd’s syndicates. Not only does the
This structure allows programs to thrive at levels reinsurance business written in 2003 have significant
which could not otherwise sustain the costs associated future profit embedded in it, but we also believe that
with being a standalone business entity. BUP’s busi- reinsurance prices will remain attractive. We foresee
ness model is exemplified by its equine underwriting many opportunities ahead and remain focused on
division, started in late 2003, which specializes in writing as much profitable business as possible in
livestock mortality. BUP provides the operating plat- the current strong market.
form for the new division and specialists provide the
21
program and product knowledge.
Berkley Risk Solutions, Inc., the newest unit in
the reinsurance group, was formed in late 2003. It
provides insurance-based and reinsurance-based
financial solutions to insurance companies and self-
insured entities not only in the United States but also
in other markets.

26. I N T E R N AT I O N A L S E G M E N T
Alan M. Rafe
Eduardo I. Llobet BI China, Limited
Berkley International
Seguros S.A.
Fernando Correa Urquiza
President of
Berkley International, LLC
he international segment returned to profitability ASIA. Our business in the Philippines specializes in
T in 2003, following a difficult year in 2002, and endowment policies to pre-fund educational expenses
increased its pre-tax income by $5 million. We and retirement income, as well as in traditional life
anticipate further profit improvement in 2004. insurance products. The business increased its assets
We conduct our international business through under management by 20% in 2003, outperforming
Berkley International, LLC, a joint venture with a competitors, and reduced its expenses, although earn-
subsidiary of The Northwestern Mutual Life ings were lower than in 2002. Through consistent
Insurance Company. W. R. Berkley Corporation growth since 1997, when the operation was started,
owns 65% of the venture and holds management we now hold approximately a 14% share of new
responsibility. Berkley International has operations business in the Philippines’ endowment pre-funding
in Argentina and Asia. market.
Late in the year, we formed an insurance agency
ARGENTINA. In Argentina, we positioned the business in Hong Kong to distribute life insurance products in
to perform well in 2003 by identifying and responding a manner similar to that used in the Philippines.
to critical issues early. The Argentine operation
returned to sound levels of profitability in 2003 even INTERNATIONAL SEGMENT OUTLOOK. We anticipate
though revenues declined due primarily to the impact profitable growth in both Argentina and the
of currency devaluation and the discontinuance of Philippines in 2004. Over time, we will seek new
the life insurance operations. opportunities in the property casualty insurance mar-
Berkley International’s property casualty opera- kets of selected countries in Latin America and Asia
tions in Argentina encompass both personal and that fit Berkley International’s approach and strategy.
commercial lines and benefited in 2003 from improve-
ment in the automobile insurance market. We shifted 2003 2002
Segment Data Dollars in Millions
22
the market focus of our workers’ compensation $153 $127
Total assets
business from larger to mid-sized companies, where 71 95
Total revenues
profit opportunities are greater at this time. 3 (2)
Pre-tax income (loss)
Through these and other actions, we again have 97% 106%
GAAP combined ratio
a healthy business in Argentina with good prospects 11% N/A
Return on equity
for profitable growth for 2004. Excludes realized investment and foreign currency gains and loses.

27. CONTENTS
Is the beaker half full or half supported by substantial financial
empty? Will insurance markets resources – have consistently
continue to strengthen or are delivered returns that are among
they nearing their peak? While the highest in the property casu-
market trends are important, it alty insurance industry.
is vital to analyze the contents
of the beaker. W. R. Berkley
Corporation’s contents – our
well-managed operating units,
CONTENTS
23

28. T O D AY & T O M O R R O W
We at W. R. Berkley Corporation
apply long-term, enterprise-wide
management to optimize risk-adjusted
returns. We have the expertise and
resources to maximize our strengths
in the present environment – and the
flexibility to anticipate, innovate and
24 respond to whatever opportunities
and challenges the future may hold.

29. W. R . BERKLEY CORPORATION | 2003 FINANCIAL DATA
25