WR Berkley shares could soar in 2009-Barron's

NEW YORK, Sept 28 (Reuters) - WR Berkley Corp (WRB.N) shares could soar in 2009 as the environment for insurance pricing improves and as it tries to win market share from American International Group Inc (AIG.N), Barron's said in its Sept. 29 edition.

Berkley's stock could reach the low to mid-30s in 2009, up from its close of $23.75 on Friday, as Wall Street begins to anticipate an improved environment for property and casualty insurers, perhaps in 2010, the weekly business newspaper said.

The Greenwich, Connecticut-based company may also be able to increase its 4 percent market share in excess and surplus lines, which involve specialized risks subject to less price regulation than auto, homeowner and commercial policies, the newspaper said. American International Group (AIG.N), which narrowly avoided collapse this month, has a 20 percent share.

Berkley's stock trades at less than eight times expected operating profit per share of $3.26 in 2008 and $3.34 in 2009, according to Reuters Estimates.

Barron's likened Berkley to Warren Buffett's Berkshire Hathaway Inc (BRKa.N) (BRKb.N), citing Chief Executive William Berkley's granting of considerable autonomy to the heads of his 34 insurance units, and linking most of their pay to their profits, not the companies.

It said Berkley's valuation is in line with those of larger property and casualty insurers such as Allstate Corp (ALL.N), Chubb Corp (CB.N) and Travelers Cos (TRV.N), though it traditionally trades at a premium. (Reporting by Jonathan Stempel; editing by Gary Crosse)