UPDATE: Goldman Sachs Downgrades WR Berkley to Sell; Valuation Rich Compared to Peers

Goldman Sachs reduced its rating on WR Berkley

to Sell with a $35 price target. Goldman Sachs noted, "We are adding shares of WRB to the Americas Sell list and see downside of 7% from current levels to our price target of $35. We believe that WRB's peer-high valuation multiple of 1.2X book value is relatively expensive when compared to peers that are trading at an average of 1.0X book value, given that its return on equity is near the peer average. We also believe that WRB is more exposed to low interest rates in the form of reinvestment risk than peers given its high portfolio leverage and long investment duration. WR Berkley closed at $37.40 on Monday.