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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000950123-03-009001.txt : 20030806
<SEC-HEADER>0000950123-03-009001.hdr.sgml : 20030806
<ACCEPTANCE-DATETIME>20030806112018
ACCESSION NUMBER:		0000950123-03-009001
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		7
CONFORMED PERIOD OF REPORT:	20030630
FILED AS OF DATE:		20030806

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BERKLEY W R CORP
		CENTRAL INDEX KEY:			0000011544
		STANDARD INDUSTRIAL CLASSIFICATION:	FIRE, MARINE & CASUALTY INSURANCE [6331]
		IRS NUMBER:				221867895
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15202
		FILM NUMBER:		03825367

	BUSINESS ADDRESS:	
		STREET 1:		475 STEAMBOAT ROAD
		STREET 2:		.
		CITY:			GREENWICH
		STATE:			CT
		ZIP:			06830
		BUSINESS PHONE:		2036293000

	MAIL ADDRESS:	
		STREET 1:		475 STEAMBOAT ROAD
		STREET 2:		.
		CITY:			GREENWICH
		STATE:			CT
		ZIP:			06830
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>y89010e10vq.txt
<DESCRIPTION>FORM 10-Q
<TEXT>
<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    Form 10-Q

(Mark one)
[X]                  QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the Quarterly Period Ended June 30, 2003

                                       or

[ ]        Transition Report Pursuant to Section 13 or 15(d) of the Securities
                             Exchange Act of 1934.

                  For the Transition Period from ____ to ____.

                          Commission File Number 0-7849

                            W. R. BERKLEY CORPORATION
              ----------------------------------------------------
             (Exact name of registrant as specified in its charter)

                Delaware                                    22-1867895
    ---------------------------------------------------------------------
    (State or other jurisdiction of                     (I.R.S. Employer
    incorporation or organization)                     Identification No.)

       475 Steamboat Road, Greenwich, Connecticut                06830
    ---------------------------------------------------------------------
     (Address of principal executive offices)                  (Zip Code)

                                 (203) 629-3000
     ----------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                      None
     -----------------------------------------------------------------------
               Former name, former address and former fiscal year,
                          if changed since last report.

Indicate by check mark whether the registrant (1) filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days.

Yes [X]    No [ ]

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).

Yes [X]    No [ ]

Number of shares of common stock, $.20 par value, outstanding as of August 1,
2003: 55,427,393

<PAGE>

                         Part I - FINANCIAL INFORMATION

ITEM 1. Financial Statements

                   W. R. Berkley Corporation and Subsidiaries
                           Consolidated Balance Sheets
                             (dollars in thousands)

<TABLE>
<CAPTION>
                                                                                                       June 30,        December 31,
                                                                                                         2003             2002
                                                                                                     ------------      ------------
                                                                                                      (Unaudited)
<S>                                                                                                  <C>               <C>
Assets
Investments:
  Cash and cash equivalents                                                                          $  1,099,232      $    594,183
  Fixed maturity securities                                                                             3,721,275         3,511,522
  Equity securities available for sale                                                                    305,874           205,372
  Equity securities trading account                                                                       238,085           165,642
  Other investments                                                                                        89,377            45,187
                                                                                                     ------------      ------------
      Total investments                                                                                 5,453,843         4,521,906
                                                                                                     ------------      ------------
Premiums and fees receivable                                                                              987,712           822,060
Due from reinsurers                                                                                       782,687           734,687
Accrued investment income                                                                                  45,765            46,334
Prepaid reinsurance premiums                                                                              238,198           164,284
Deferred policy acquisition costs                                                                         370,653           308,200
Real estate, furniture & equipment at cost, less accumulated depreciation                                 140,027           135,488
Deferred federal and foreign income taxes                                                                  10,003            20,585
Goodwill                                                                                                   59,021            59,021
Trading account receivable from brokers and clearing organizations                                        153,413           177,309
Other assets                                                                                               62,935            41,449
                                                                                                     ------------      ------------
      Total assets                                                                                   $  8,304,257      $  7,031,323
                                                                                                     ============      ============

Liabilities and Stockholders' Equity
Liabilities:
  Reserves for losses and loss expenses                                                              $  3,633,849      $  3,167,925
  Unearned premiums                                                                                     1,725,064         1,390,246
  Due to reinsurers                                                                                       190,046           184,912
  Trading securities sold but not yet purchased                                                            77,967            36,115
  Policyholders' account balances                                                                          48,847            42,707
  Due to brokers and clearing organizations                                                                68,060                --
  Other liabilities                                                                                       320,995           294,334
  Debt                                                                                                    499,377           362,985
  Trust preferred securities                                                                              193,316           198,251
                                                                                                     ------------      ------------
      Total liabilities                                                                                 6,757,521         5,677,475
                                                                                                     ------------      ------------

Minority interest                                                                                          21,490            18,649
Stockholders' equity:
  Preferred stock, par value $.10 per share:
    Authorized 5,000,000 shares; issued and outstanding - none                                                 --                --
  Common stock, par value $.20 per share:
   Authorized 150,000,000 shares, issued and outstanding,
     net of treasury shares, 55,404,998 and 55,223,448 shares                                              13,934            13,934
  Additional paid-in capital                                                                              824,222           823,190
  Retained earnings                                                                                       781,904           623,651
  Accumulated other comprehensive income                                                                  131,725           104,603
  Treasury stock, at cost, 14,264,552 and 14,446,102 shares                                              (226,539)         (230,179)
                                                                                                     ------------      ------------
      Total stockholders' equity                                                                        1,525,246         1,335,199
                                                                                                     ------------      ------------
      Total liabilities and stockholders' equity                                                     $  8,304,257      $  7,031,323
                                                                                                     ============      ============
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       2

<PAGE>

                   W. R. Berkley Corporation and Subsidiaries
                      Consolidated Statements of Operations
                                   (Unaudited)
                  (dollars in thousands, except per share data)

<TABLE>
<CAPTION>
                                                          For the Three Months           For the Six Months
                                                              Ended June 30,                Ended June 30,
                                                       --------------------------    --------------------------
                                                          2003            2002          2003           2002
                                                       -----------    -----------    -----------    -----------
<S>                                                    <C>            <C>            <C>            <C>
Revenues:
  Net premiums written                                 $   875,457    $   601,095    $ 1,767,516    $ 1,235,088
  Change in unearned premiums, net                         (68,989)       (88,407)      (260,922)      (243,934)
                                                       -----------    -----------    -----------    -----------
    Premiums earned                                        806,468        512,688      1,506,594        991,154
  Net investment income                                     50,421         44,564        102,181         88,716
  Service fees                                              25,910         20,924         51,379         41,117
  Realized investment gains (losses)                        43,673         (8,383)        58,277         (3,424)
  Foreign currency gains (losses)                               44            (66)        (1,194)           (62)
  Other income                                                 441            208          1,133            320
                                                       -----------    -----------    -----------    -----------
    Total revenues                                         926,957        569,935      1,718,370      1,117,821
                                                       -----------    -----------    -----------    -----------
Expenses:
  Losses and loss expenses                                 514,157        336,515        958,043        647,116
  Other operating expenses                                 258,160        184,883        489,013        360,326
  Interest expense                                          13,273         11,330         25,368         22,465
                                                       -----------    -----------    -----------    -----------
    Total expenses                                         785,590        532,728      1,472,424      1,029,907
                                                       -----------    -----------    -----------    -----------

    Income before income taxes and minority interest       141,367         37,207        245,946         87,914

Income tax expense                                         (44,230)       (15,563)       (77,216)       (31,785)
Minority interest                                           (1,297)         5,730         (1,187)         5,641
                                                       -----------    -----------    -----------    -----------

    Net income                                         $    95,840    $    27,374    $   167,543    $    61,770
                                                       ===========    ===========    ===========    ===========

Net income per share:
  Basic                                                $      1.73    $      0.55    $      3.03    $      1.23
                                                       ===========    ===========    ===========    ===========
  Diluted                                              $      1.65    $      0.52    $      2.90    $      1.18
                                                       ===========    ===========    ===========    ===========
Average shares outstanding:
  Basic                                                $    55,343    $    50,125    $    55,296    $    50,020
                                                       ===========    ===========    ===========    ===========
  Diluted                                              $    58,035    $    52,399    $    57,774    $    52,304
                                                       ===========    ===========    ===========    ===========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       3

<PAGE>

                   W. R. Berkley Corporation and Subsidiaries
                 Consolidated Statements of Stockholders' Equity
                             (Dollars in thousands)

<TABLE>
<CAPTION>
                                                 Six Months ended        Year Ended
                                                   June 30, 2003      December 31, 2002
                                                 ----------------     -----------------
                                                    (Unaudited)
<S>                                              <C>                  <C>
Common stock:
    Beginning of period                             $  13,934             $  12,991
    Issuance of common stock                               --                   943
                                                    ---------             ---------
    End of period                                   $  13,934             $  13,934
                                                    =========             =========

Additional paid in capital:
    Beginning of period                             $ 823,190             $ 654,936
    Issuance of common stock                              393               168,254
    Restricted stock units earned                         639                    --
                                                    ---------             ---------
    End of period                                   $ 824,222             $ 823,190
                                                    =========             =========

Retained earnings:
    Beginning of period                             $ 623,651             $ 467,185
    Net income                                        167,543               175,045
    Elimination of international reporting lag         (1,776)                   --
    Dividends to stockholders'                         (7,514)              (18,579)
                                                    ---------             ---------
    End of period                                   $ 781,904             $ 623,651
                                                    =========             =========

Accumulated other comprehensive income:

    Unrealized investment gains:
       Beginning of period                          $ 114,664             $  41,731
       Net change in period                            33,876                72,933
                                                    ---------             ---------
       End of period                                  148,540               114,664
                                                    ---------             ---------

    Currency translation adjustments:
       Beginning of period                            (10,061)               (4,391)
       Net change in period                            (6,754)               (5,670)
                                                    ---------             ---------
       End of period                                  (16,815)              (10,061)
                                                    ---------             ---------

    Total accumulated other comprehensive income    $ 131,725             $ 104,603
                                                    =========             =========

Treasury stock:
    Beginning of period                             $(230,179)            $(240,857)
    Issuance under stock option plan                    3,640                10,749
    Purchase of common stock                               --                   (71)
                                                    ---------             ---------
    End of period                                   $(226,539)            $(230,179)
                                                    =========             =========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       4

<PAGE>

                   W. R. Berkley Corporation and Subsidiaries
                      Consolidated Statements of Cash Flows
                                   (Unaudited)
                             (dollars in thousands)

<TABLE>
<CAPTION>
                                                                                      For the Six Months
                                                                                         Ended June 30,
                                                                                  --------------------------
                                                                                     2003            2002
                                                                                  -----------    -----------
<S>                                                                               <C>            <C>
Cash flows provided by operating activities:
  Net income                                                                      $   167,543    $    61,770
  Adjustments to reconcile net income to cash
     flows provided by operating activities:
    Minority interest                                                                   1,187         (5,641)
    Change in reserves for losses
      and loss expenses, net                                                          429,198        120,071
    Depreciation and amortization                                                      11,032          8,840
    Change in unearned premiums and
      prepaid reinsurance premiums                                                    260,904        236,037
    Change in premiums and fees receivable                                           (165,652)      (156,261)
    Change in federal and foreign income taxes                                         11,096         28,336
    Change in deferred policy acquisition cost                                        (62,453)       (33,158)
    Realized investment and foreign currency (gains) losses                           (57,083)         3,486
    Other, net                                                                            647        (24,026)
                                                                                  -----------    -----------
      Net cash flows provided by operating activities
            before trading account                                                    596,419        239,454
Change in trading account securities                                                   (6,695)       173,288
                                                                                  -----------    -----------
      Net cash flows provided by operating activities                                 589,724        412,742
                                                                                  -----------    -----------

Cash flows used in investing activities:
  Proceeds from sales, excluding trading account:
     Fixed maturity securities                                                        661,975        374,818
     Equity securities                                                                 35,036         13,282
     Maturities and prepayments of fixed maturity securities                          284,163        119,401
  Cost of purchases, excluding trading account:
     Fixed maturity securities                                                     (1,059,270)    (1,026,010)
     Equity securities                                                               (120,210)       (94,477)
     Other invested securities                                                        (41,097)        46,386
  Change in balances due to/from security brokers                                      51,315        (15,672)
  Net additions to real estate, furniture and equipment                               (14,568)        (2,066)
  Other, net                                                                               --         (6,604)
                                                                                  -----------    -----------
     Net cash flows used in investing activities                                     (202,656)      (590,942)
                                                                                  -----------    -----------
Cash flows provided by financing activities:
  Net proceeds from issuance of debt                                                  196,840             --
  Repayment and repurchase of debt and trust preferred securities                     (65,750)        (8,000)
  Cash dividends                                                                      (10,472)        (8,571)
  Net proceeds from stock options exercised                                             4,672          6,534
  Other, net                                                                           (7,309)        21,161
                                                                                  -----------    -----------

    Net cash flows provided by financing activities                                   117,981         11,124
                                                                                  -----------    -----------

    Net increase (decrease) in cash and cash equivalents                              505,049       (167,076)
Cash and cash equivalents at beginning of year                                        594,183        534,086
                                                                                  -----------    -----------
    Cash and cash equivalents at end of period                                    $ 1,099,232    $   367,010
                                                                                  ===========    ===========

Supplemental disclosure of cash flow information:

  Interest paid                                                                   $    21,132    $    22,725
                                                                                  ===========    ===========
  Federal income taxes paid, net                                                  $    65,909    $     3,448
                                                                                  ===========    ===========
</TABLE>

          See accompanying notes to consolidated financial statements.

                                       5

<PAGE>

                   W. R. Berkley Corporation and Subsidiaries
              Notes to Unaudited Consolidated Financial Statements
                                  June 30, 2003

1.       GENERAL

         The accompanying consolidated financial statements should be read in
conjunction with the following notes and with the Notes to Consolidated
Financial Statements included in the Company's Annual Report on Form 10-K for
the year ended December 31, 2002. Reclassifications have been made in the 2002
financial statements as originally reported to conform them to the presentation
of the 2003 financial statements.

         In the fourth quarter of 2002, the Company modified the presentation of
reinsurance assumed from Lloyd's syndicates to reflect the Company's share of
the reinsurance and brokerage costs paid by the syndicates. Previously, these
amounts were netted against assumed premiums. Premiums and expenses for the
first three quarters of 2002 were reclassified to conform with this
presentation. There was no effect from this change on net income or net income
per share.

         The federal and foreign income tax provision has been computed based on
the Company's estimated annual effective tax rate, which differs from the
federal income tax rate of 35% principally because of tax-exempt investment
income.

         Basic earnings per share data is based upon the weighted average number
of shares outstanding during the period. Diluted earnings per share data
reflects the potential dilution that would occur if options granted under
employee stock-based compensation plans were exercised and restricted stock
units earned were delivered.

         In the opinion of management, the financial information reflects all
adjustments which are necessary for a fair presentation of financial position
and results of operations for the interim periods. Seasonal weather variations
affect the severity and frequency of losses sustained by the insurance and
reinsurance subsidiaries. Although the effect on the Company's business of such
natural catastrophes as tornadoes, hurricanes, hailstorms and earthquakes is
mitigated by reinsurance, they nevertheless can have a significant impact on the
results of any one or more reporting periods.

2.       COMPREHENSIVE INCOME

         The following is a reconciliation of comprehensive income (dollars in
thousands):

<TABLE>
<CAPTION>
                                                                For the Three Months       For the Six Months
                                                                   Ended June 30,             Ended June 30,
                                                               ----------------------    ----------------------
                                                                 2003         2002          2003        2002
                                                               ---------    ---------    ---------    ---------
<S>                                                            <C>          <C>          <C>          <C>
Net income                                                     $  95,840    $  27,374    $ 167,543    $  61,770

Other comprehensive income:
    Unrealized holding gains (losses) on investments, net of
       taxes                                                      10,755       38,038       (3,278)      17,277
    Reclassification for realized gains included in net
       income, net of taxes                                       28,287       (4,103)      37,154         (877)
                                                               ---------    ---------    ---------    ---------

       Unrealized investment gains, net of taxes                  39,042       33,935       33,876       16,400
    Currency translation adjustments, net of
       taxes                                                      (4,656)       5,029       (6,754)       5,001
                                                               ---------    ---------    ---------    ---------
       Other comprehensive income                                 34,386       38,964       27,122       21,401
                                                               ---------    ---------    ---------    ---------

       Comprehensive income                                    $ 130,226    $  66,338    $ 194,665    $  83,171
                                                               =========    =========    =========    =========
</TABLE>

                                       6

<PAGE>

                   W. R. Berkley Corporation and Subsidiaries
        Notes to Unaudited Consolidated Financial Statements (Continued)
                                  June 30, 2003

3.       STOCK-BASED COMPENSATION

         During the first quarter of 2003, the Company adopted the fair value
recognition provisions of FASB Statement No. 123, Accounting for Stock-Based
Compensation, effective as of January 1, 2003. Under the prospective method of
adoption selected by the Company, the fair value recognition provisions of FASB
123 are applied to all employee awards granted, modified or settled after
January 1, 2003. The following table illustrates the effect on net income and
earnings per share as if the fair value based method had been applied to all
outstanding and unvested awards in each period (dollars in thousands, except per
share data).

<TABLE>
<CAPTION>
                                                 For the Three Months         For the Six Months
                                                    Ended June 30,               Ended June 30,
                                              -------------------------   --------------------------
                                                 2003          2002          2003           2002
                                              -----------   -----------   -----------    -----------
<S>                                           <C>           <C>           <C>            <C>
Net income, as reported                       $    95,840   $    27,374   $   167,543    $    61,770

Add: Stock-based compensation expense
included in reported net income, net of tax            10            --            12             --


Deduct: Total stock-based employee
compensation expense under fair value based
method for all awards, net of tax
                                                   (1,196)       (1,133)       (2,390)        (2,267)
                                              -----------   -----------   -----------    -----------

Pro forma net income                          $    94,654   $    26,241   $   165,165    $    59,503
                                              ===========   ===========   ===========    ===========

Earnings per share:
  Basic - as reported                         $      1.73   $      0.55   $      3.03    $      1.23
  Basic - pro forma                           $      1.71   $      0.52   $      2.99    $      1.19

  Diluted - as reported                       $      1.65   $      0.52   $      2.90    $      1.18
  Diluted - pro forma                         $      1.63   $      0.50   $      2.86    $      1.14
</TABLE>

         On April 4, 2003, 300,000 Restricted Stock Units (RSU) were awarded to
officers of the Company and its subsidiaries. Each RSU represents the right to
receive one share of common stock, conditioned on the employee's satisfying
certain requirements outlined in the award agreement. The RSU's vest after five
years of continuous employment. The Company determines the cost of the RSU's
awarded based on the market value of the stock at the time of the award. The
cost is recognized as compensation expense as the units are earned over the
vesting period. The Company recognized compensation expense related to RSU's of
$639,000 in the second quarter of 2003. The remaining unearned compensation for
outstanding RSU's was $12,141,000 as of June 30, 2003.

                                       7

<PAGE>

                   W. R. Berkley Corporation and Subsidiaries
        Notes to Unaudited Consolidated Financial Statements (Continued)
                                  June 30, 2003

4.       INVESTMENTS

         The cost, fair value and carrying value of fixed maturity securities
and equity securities available for sale are as follows (dollars in thousands):

<TABLE>
<CAPTION>
                                                              Gross        Gross
                                                            Unrealized   Unrealized       Fair       Carrying
                                                Cost (a)       Gain         Loss          Value        Value
                                               ----------   ----------   ----------    ----------   ----------
<S>                                            <C>          <C>          <C>           <C>          <C>
June 30, 2003
Fixed maturity securities:
  Held to maturity                             $  190,133   $   21,938   $      (83)   $  211,988   $  190,133
  Available for sale                            3,320,183      215,139       (4,180)    3,531,142    3,531,142
                                               ----------   ----------   ----------    ----------   ----------
         Total                                 $3,510,316   $  237,077   $   (4,263)   $3,743,130   $3,721,275
                                               ==========   ==========   ==========    ==========   ==========

Equity securities available
  for sale                                     $  287,778   $   21,414   $   (3,318)   $  305,874   $  305,874

December 31, 2002
Fixed maturity securities:
  Held to maturity                             $  205,856   $   21,861   $     (107)   $  227,610   $  205,856
  Available for sale                            3,129,993      184,751       (9,078)    3,305,666    3,305,666
                                               ----------   ----------   ----------    ----------   ----------
         Total                                 $3,335,849   $  206,612   $   (9,185)   $3,533,276   $3,511,522
                                               ==========   ==========   ==========    ==========   ==========

Equity securities available
  for sale                                     $  203,388   $    8,232   $   (6,248)   $  205,372   $  205,372
</TABLE>

(a) Adjusted as necessary for amortization of premium or discount

5.       REINSURANCE CEDED

         The Company reinsures a portion of its exposures principally to reduce
its net liability on individual risks and to protect against catastrophic
losses. The following amounts arising under reinsurance ceded contracts have
been deducted in arriving at the amounts reflected in the statement of
operations (dollars in thousands):

<TABLE>
<CAPTION>
                                     For the Three Months    For the Six Months
                                        Ended June 30,         Ended June 30,
                                     --------------------   -------------------
                                        2003       2002       2003       2002
                                     ---------   --------   --------   --------
<S>                                  <C>         <C>        <C>        <C>
Ceded premiums earned:
  Aggregate reinsurance agreement:
    Individual losses                $  31,362   $ 23,496   $ 59,769   $ 39,172
    Aggregate losses                     5,000      6,250     10,000     12,500
                                     ---------   --------   --------   --------
    Total                               36,362     29,746     69,769     51,672
                                     ---------   --------   --------   --------
  Other reinsurance contracts           84,119     76,344    181,760    149,977
                                     ---------   --------   --------   --------
     Total                           $1120,481   $106,090   $251,529   $201,649
                                     =========   ========   ========   ========

Ceded losses incurred:
  Aggregate reinsurance agreement:
    Individual losses                $  26,528   $ 13,623   $ 46,929   $ 21,977
    Aggregate losses                     9,000     11,250     18,000     22,500
                                     ---------   --------   --------   --------
    Total                               35,528     24,873     64,929     44,477
                                     ---------   --------   --------   --------
  Other reinsurance contracts           52,181     38,398    103,155     80,364
                                     ---------   --------   --------   --------
    Total                            $  87,709   $ 63,271   $168,084   $124,841
                                     =========   ========   ========   ========
</TABLE>

                                       8

<PAGE>

                   W. R. Berkley Corporation and Subsidiaries
        Notes to Unaudited Consolidated Financial Statements (Continued)
                                  June 30, 2003

5.       REINSURANCE CEDED (continued)

         Effective January 1, 2001, the Company entered into a multi-year
aggregate reinsurance agreement that provides two types of reinsurance coverage.
The first type of coverage provides protection for individual losses on an
excess of loss or quota share basis, as specified for each class of business
covered by the agreement. The second type of coverage provides aggregate
accident year protection for the Company's reinsurance segment for loss and loss
adjustment expenses incurred above a certain level. Loss recoveries are subject
to annual limits and an aggregate limit over the contract period. The agreement
contains a profit sharing provision under which the Company can recover a
portion of premiums paid to the reinsurer if certain profit conditions are met.
Based on its estimate of expected profits under the contract, the Company
accrued return premiums of $18 million and $23 million for the second quarter
and first six months of 2003, respectively.

         Certain of the Company's reinsurance agreements, including the
aggregate reinsurance agreement, are structured on a funds held basis, whereby
the Company retains some or all of the ceded premiums in a separate account that
is used to fund ceded losses as they become due from the reinsurance company.
Interest is credited to reinsurers for funds held on their behalf at rates
ranging from 7.0% to 8.9% of the account balances, as defined under the
agreements. Interest credited to reinsurers, which is reported as a reduction of
net investment income, was $9 million and $16 million for the second quarter and
first six months of 2003, respectively, and $5 million and $9 million for the
corresponding 2002 periods. As of June 30, 2003 and December 31, 2002, funds
held by the Company under the aggregate reinsurance agreement exceeded the
amount recoverable from the reinsurer for losses and loss adjustment expenses.

6.       INDUSTRY SEGMENTS

         The Company's operations are presently conducted through five segments
of the insurance business: specialty lines of insurance; alternative markets;
reinsurance; regional property casualty insurance; and international. The
specialty segment's business is principally within the excess and surplus lines,
professional liability, commercial transportation and surety markets. The
Company's alternative markets segment offers workers' compensation insurance on
an excess and primary basis and provides fee-based services to help clients
develop and administer self-insurance programs. The Company's reinsurance
segment specializes in underwriting property casualty reinsurance on both a
treaty and facultative basis. The regional property casualty insurance segment
provides commercial property casualty insurance products. The international
segment offers personal and commercial property casualty insurance in Argentina
and savings and life products in the Philippines. During 2001, the Company
discontinued its regional personal lines business and the alternative markets
division of its reinsurance segment. These discontinued businesses are reported
collectively as a separate business segment.

         The accounting policies of the segments are the same as those described
in the summary of significant accounting policies included in the Company's
Annual Report on Form 10-K for the year ended December 31, 2002. Realized
investment and foreign currency gains and losses are not allocated to segments.
Income tax expense and benefits are calculated based upon the Company's overall
effective tax rate. Summary financial information about the Company's operating
segments is presented in the following table. Income (loss) before income taxes
by segment consists of revenues less expenses related to the respective
segment's operations, including allocated investment income. Identifiable assets
by segment are those assets used in or allocated to the operation of each
segment.

                                       9
<PAGE>

                   W. R. Berkley Corporation and Subsidiaries
        Notes to Unaudited Consolidated Financial Statements (Continued)
                                  June 30, 2003

6.       INDUSTRY SEGMENTS (continued)

<TABLE>
<CAPTION>
                                                                Revenues
                                            -----------------------------------------------
                                             Earned     Investment                               Pre-Tax       Net
         (dollars in thousands)             Premiums      Income        Other        Total        Income      Income
                                            ---------   ----------    ---------    ---------    ---------    ---------
<S>                                         <C>         <C>           <C>          <C>          <C>          <C>
For the three months ended June 30, 2003:
  Specialty                                 $ 271,333   $   15,935      $    --    $ 287,268    $  54,756    $  36,897
  Alternative Markets                         106,282        9,536       25,910      141,728       22,415       14,735
  Reinsurance                                 196,632       12,744           --      209,376       10,460        7,237
  Regional                                    214,089       10,873           --      224,962       34,071       22,380
  International                                18,132        1,662           --       19,794        1,767          943
  Discontinued Business                            --           --           --           --           --           --
  Corporate and
    eliminations                                   --         (329)         441          112      (25,819)     (14,639)
  Realized gains                                   --           --       43,717       43,717       43,717       28,287
                                            ---------   ----------    ---------    ---------    ---------    ---------
  Consolidated                              $ 806,468   $   50,421    $  70,068    $ 926,957    $ 141,367    $  95,840
                                            =========   ==========    =========    =========    =========    =========

For the three months ended June 30, 2002:
  Specialty (1)                             $ 174,053   $   12,316      $    --    $ 186,369    $  35,496    $  22,532
  Alternative Markets                          51,487        9,207       20,816       81,510       13,749        9,380
  Reinsurance (1)                              82,259       10,502           (2)      92,759        2,635        4,115
  Regional                                    172,062       11,186           --      183,248       18,565        9,334
  International                                20,206          711           (4)      20,913         (800)      (1,104)
  Discontinued Business                        12,621        1,147           --       13,768       (4,600)      (2,990)
  Corporate and
    eliminations                                   --         (505)         322         (183)     (19,389)      (9,790)
  Realized gains                                   --           --       (8,449)      (8,449)      (8,449)      (4,103)
                                            ---------   ----------    ---------    ---------    ---------    ---------
  Consolidated                              $ 512,688   $   44,564    $  12,683    $ 569,935    $  37,207    $  27,374
                                            =========   ==========    =========    =========    =========    =========
</TABLE>

<TABLE>
<CAPTION>
                                                                 Revenues
                                          -------------------------------------------------------
                                            Earned      Investment                                     Pre-Tax          Net
         (dollars in thousands)            Premiums       Income          Other          Total         Income         Income
                                          -----------   -----------    -----------    -----------    -----------    -----------
<S>                                       <C>           <C>            <C>            <C>            <C>            <C>
For the six months ended June 30, 2003:
  Specialty                               $   512,960   $    32,129    $        --    $   545,089    $   103,297    $    68,352
  Alternative Markets                         189,256        19,063         51,379        259,698         44,364         29,480
  Reinsurance                                 359,109        26,218             --        385,327         20,129         13,961
  Regional                                    412,294        22,152             --        434,446         66,266         43,843
  International                                32,975         3,081             --         36,056          3,002          1,570
  Discontinued Business                            --            --             --             --             --             --
  Corporate and
    eliminations                                   --          (462)         1,133            671        (48,195)       (26,817)
  Realized gains                                   --            --         57,083         57,083         57,083         37,154
                                          -----------   -----------    -----------    -----------    -----------    -----------
  Consolidated                            $ 1,506,594   $   102,181    $   109,595    $ 1,718,370    $   245,946    $   167,543
                                          ===========   ===========    ===========    ===========    ===========    ===========

For the six months ended June 30, 2002:
  Specialty (1)                           $   324,475   $    24,426    $        --    $   348,901    $    55,875    $    36,245
  Alternative Markets                          96,824        17,961         40,842        155,627         27,981         18,865
  Reinsurance (1)                             146,838        20,684             (4)       167,518         10,826         10,357
  Regional                                    328,643        21,207             --        349,850         41,000         24,490
  International                                59,390         2,163             --         61,553           (534)        (1,340)
  Discontinued Business                        34,984         3,016             --         38,000         (4,654)        (3,025)
  Corporate and
    eliminations                                   --          (741)           599           (142)       (39,094)       (22,945)
  Realized gains                                   --            --         (3,486)        (3,486)        (3,486)          (877)
                                          -----------   -----------    -----------    -----------    -----------    -----------
  Consolidated                            $   991,154   $    88,716    $    37,951    $ 1,117,821    $    87,914    $    61,770
                                          ===========   ===========    ===========    ===========    ===========    ===========
</TABLE>

(1)      During the first quarter of 2003, management responsibility and
         financial reporting for Vela Insurance Services, Inc., an excess and
         surplus lines underwriting manager, were transferred from the
         reinsurance segment to the specialty segment. Segment results for the
         prior period were restated to reflect this change.

                                       10

<PAGE>

                   W. R. Berkley Corporation and Subsidiaries
        Notes to Unaudited Consolidated Financial Statements (Continued)
                                  June 30, 2003

6.       INDUSTRY SEGMENTS (continued)

         Identifiable assets by segment are as follows (dollars in thousands):

<TABLE>
<CAPTION>
                                    June 30,      December 31,
                                      2003            2002
                                   -----------    ------------
<S>                                <C>            <C>
Specialty                          $ 2,687,765    $  2,271,105
Alternative Markets                  1,335,346       1,197,977
Reinsurance                          2,909,861       2,431,429
Regional                             1,895,334       1,590,913
International                          146,756         126,528
Discontinued Business                   99,086         162,754
Corporate other and eliminations      (769,891)       (749,383)
                                   -----------    ------------
Consolidated                       $ 8,304,257    $  7,031,323
                                   ===========    ============
</TABLE>

7.       DEBT

         In February 2003, the Company issued $200 million aggregate principal
amount of 5.875% senior notes due February 2013. The notes were issued at 99.07%
of their face value amount and the net proceeds after expenses were
$196,840,000.

         During, the first quarter of 2003, the Company repaid $35,793,000 of
6.5% senior subordinated notes and $25,000,000 of 6.71% senior notes upon their
respective maturities.

8.       COMMITMENTS, LITIGATION AND CONTINGENT LIABILITIES

         A subsidiary of the Company has a pending arbitration proceeding
pertaining to the interpretation of the contract terms in two reinsurance
agreements. The reinsurer's interpretation of the contract terms would reduce
the amount recoverable from the reinsurer by approximately $49 million as of
June 30, 2003. Although the ultimate outcome of this matter cannot be
determined, management believes that the Company's interpretation of these
agreements is correct and is vigorously pursuing this matter in arbitration.

         There is a pending arbitration pertaining to reinsurance contract
coverage issues where a subsidiary of the Company is the assuming reinsurer.
Based on currently available information, the Company believes that the
resolution of this pending arbitration will not have a material effect on its
financial condition or results of operations. However, if this arbitration is
decided adversely to the Company, the Company's potential exposure, in excess of
the amount reserved, is up to $9 million, after tax.

         The Company's subsidiaries are subject to other disputes, including
litigation and arbitration, arising in the ordinary course of their insurance
and reinsurance businesses. The Company's estimates of the costs of settling
such matters are reflected in its aggregate reserves for losses and loss
expenses, and the Company does not believe that the ultimate outcome of such
matters, individually or in the aggregate, will have a material adverse effect
on its financial condition or results of operations.

                                       11

<PAGE>

                   W. R. Berkley Corporation and Subsidiaries
        Notes to Unaudited Consolidated Financial Statements (Continued)
                                  June 30, 2003

9.       ACCOUNTING CHANGES

         The Company adopted Financial Accounting Standards Board Interpretation
No. 46, Consolidation of Variable Interest Entities, which clarifies controlling
interest. The adoption of Interpretation 46 did not have any impact on the
Company's results of operations or financial condition.

         In May 2003, the FASB issued Statement No. 150, Accounting for Certain
Financial Instruments with Characteristics of both Liability and Equity. This
Statement establishes standards for how an issuer classifies and measures
certain financial instruments with characteristics of both liabilities and
equity. One requirement under the Statement is that trust preferred securities
to be presented as liabilities. The Company elected to adopt Statement 150 in
the second quarter of 2003, and accordingly, trust preferred securities have
been reclassified to liabilities in the accompanying consolidated balance sheet.
There was no impact from the adoption of Statement 150 on the consolidated
statement of operations.

10.      SUBSEQUENT EVENT

         In August 2003, the Company's board of directors approved a 3-for-2
common stock split to be paid in the form of a common stock dividend on August
27, 2003 to holders of record on August 18, 2003. The per share information in
this 10-Q has not been adjusted to reflect this stock split.

         During July 2003 the Company contributed approximately $107 million for
an 80% interest in a newly formed U.K. insurance company, W. R. Berkley
Insurance (Europe), Limited. The remaining 20% of W. R. Berkley Insurance
(Europe), Limited is owned by Kiln plc.

11.      SAFE HARBOR STATEMENT

         This is a "Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995. Any forward-looking statements contained herein,
including statements related to our outlook for the industry and for our
performance for the year 2003 and beyond, are based upon the Company's
historical performance and on current plans, estimates and expectations. The
inclusion of this forward-looking information should not be regarded as a
representation by us or any other person that the future plans, estimates or
expectations contemplated by us will be achieved. They are subject to various
risks and uncertainties, including but not limited to, the cyclical nature of
the property casualty industry, the long-tail and potentially volatile nature of
the reinsurance business, product demand and pricing, claims development and the
process of estimating reserves, the uncertain nature of damage theories and loss
amounts, the ultimate results of the various pending legal and arbitration
proceedings, the increased level of our retention, natural and man-made
catastrophic losses, including as a result of terrorist activities, the impact
of competition, the availability of reinsurance, the ability of our reinsurers
to pay reinsurance recoverables owed to us, investment results and potential
impairment of invested assets, exchange rate and political risks, legislative
and regulatory developments, changes in the ratings assigned to us by ratings
agencies, our exposure for terrorist acts, the availability of dividends from
our insurance company subsidiaries, our successful integration of acquired
companies or investment in new insurance ventures, our ability to attract and
retain qualified employees, and other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission. These risks could
cause actual results of the industry or our actual results for the year 2003 and
beyond to differ materially from those expressed in any forward-looking
statement made by or on behalf of the Company. Forward-looking statements speak
only as of the date on which they are made.

                                       12

<PAGE>

Item 2.

                Management's Discussion and Analysis of Financial
                       Condition and Results of Operations

CRITICAL ACCOUNTING POLICIES

         The notes to the Company's financial statements, included in the
Company's Annual Report on Form 10-K for the year ended December 31, 2002,
discuss its significant accounting policies. Management considers certain of
these policies to be critical to the portrayal of the Company's financial
condition and results since they require management to establish estimates based
on complex and subjective judgments, often including the interplay of specific
uncertainties with related accounting measurements.

RESERVES FOR LOSSES AND LOSS EXPENSES The Company maintains reserves for losses
and loss expenses to cover its estimated liability for unpaid claims, including
legal and other fees, as well as a portion of its general expenses, for reported
and unreported claims incurred as of the end of each accounting period. Reserves
do not represent an exact calculation of liability. Rather, reserves represent
an estimate of what management expects the ultimate settlement and
administration of claims will cost. These estimates, which generally involve
actuarial projections, are based on management's assessment of facts and
circumstances then known, as well as estimates of future trends in claims
severity and frequency, judicial theories of liability and other factors,
including the actions of third parties which are beyond the Company's control.
The variables described above are affected by both internal and external events,
such as changes in claims handling procedures, inflation, judicial and
litigation trends and legislative changes. Additionally, there may be a
significant delay between the occurrence of the insured event and the time it is
reported to the Company.

         The inherent uncertainties of estimating reserves are greater for
certain types of liabilities, where the various considerations affecting these
types of claims are subject to change and long periods of time may elapse before
a definitive determination of liability is made. Reserve estimates are
continually refined in an ongoing process as experience develops and further
claims are reported and settled. Adjustments to reserves are reflected in the
results of the periods in which such estimates are changed. Because setting
reserves is inherently uncertain, the Company cannot assure that its current
reserves will prove adequate in light of subsequent events. Should the Company
need to increase its reserves, its net income for the period will decrease by a
corresponding amount.

RESULTS OF OPERATIONS FOR THE FIRST SIX MONTHS OF 2003 COMPARED TO THE FIRST SIX
MONTHS OF 2002

         The Company reported net income of $168 million, or $2.90 per share,
for the six months ended June 30, 2003 compared with $62 million, or $1.18 per
share, for the corresponding 2002 period. Following are the components of net
income for the six months ended June 30, 2003 and 2002 (dollars in thousands):

<TABLE>
<CAPTION>
                                                             2003        2002
                                                          ---------    ---------
<S>                                                       <C>          <C>
Underwriting income (1)                                   $ 125,211    $  36,072
Insurance services                                           10,651        6,984
Net investment income                                       102,181       88,716
Interest and other expenses                                 (49,180)     (40,372)
Realized investment and foreign currency gains (losses)      57,083       (3,486)
Income taxes and minority interest                          (78,403)     (26,144)
                                                          ---------    ---------
  Net income                                              $ 167,543    $  61,770
                                                          =========    =========
</TABLE>

(1) Represents premiums earned less loss, loss expenses and underwriting
    expenses incurred.

                                       13

<PAGE>

UNDERWRITING Following is a summary of underwriting results for the six months
ended June 30, 2003 and 2002 (dollars in thousands):

<TABLE>
<CAPTION>
                           2003            2002          % Change
                         ----------    -------------     --------
<S>                      <C>           <C>               <C>
Gross premiums written   $2,073,968    $   1,505,211        38%
Net premiums written      1,767,516        1,235,088        43%
Premiums earned           1,506,594          991,154        52%
Underwriting income         125,211           36,072
Loss ratio (1)                 63.6%            65.3%
Expense ratio (2)              28.1%            31.1%
Combined ratio                 91.7%            96.4%
</TABLE>

(1) Represents losses and loss expenses incurred expressed as a percentage of
    premiums earned.

(2) Represents underwriting expenses expressed as a percentage of premiums
    earned.

         The Company's operations are presently conducted through five segments:
specialty lines of insurance, alternative markets, reinsurance, regional
property casualty insurance, and international. In addition, the Company reports
the run-off of its discontinued personal lines and alternative markets
reinsurance business as a separate business segment.

         During the first quarter of 2003, management responsibility and
financial reporting for Vela Insurance Services, Inc., an excess and surplus
lines underwriting manager, were transferred from the reinsurance segment to the
specialty segment. Segment result for the prior period were restated to reflect
this change. Additional information for the business segments follows.

SPECIALTY The specialty segment provides insurance products and services
principally to the excess and surplus lines, professional liability, commercial
transportation and surety markets. Following is a summary of underwriting
results for the specialty segment for the six months ended June 30, 2003 and
2002 (dollars in thousands):

<TABLE>
<CAPTION>
                            2003        2002         % Change
                         ---------   ----------      --------
<S>                      <C>         <C>             <C>
Gross premiums written   $ 670,242   $  470,931         42%
Net premiums written       607,784      412,193         47%
Premiums earned            512,960      324,475         58%
Underwriting income         71,168       31,449
Loss ratio                    61.6%        62.3%
Expense ratio                 24.5%        28.0%
Combined ratio                86.1%        90.3%
</TABLE>

         Net premiums written in 2003 increased by 47% compared with 2002 as a
result of higher prices as well as new business. Net premiums written increased
45% for the Company's three excess and surplus lines companies, 52% for
commercial transportation business and 39% for Monitor Liability Managers, Inc.,
which specializes in directors' and officers' and lawyers professional liability
business. Net premiums written in 2003 also include $14 million from the
Company's new underwriting unit, Berkley Medical Excess Underwriters, LLC.

         The 2003 loss ratio decreased by 0.7 percentage points to 61.6%. The
improvement was primarily a result of higher prices and more favorable terms and
conditions for current business, partially offset by prior year reserve
development. The 2003 expense ratio decreased by 3.5 percentage points to 24.5%
as a result of a 58% increase in earned premiums with no significant increase in
expenses other than commissions and premium taxes.

                                       14

<PAGE>

ALTERNATIVE MARKETS The alternative markets segment offers workers' compensation
insurance on an excess and primary basis and provides fee-based services to help
clients develop and administer self-insurance programs. Following is a summary
of underwriting results for the alternative markets segment for the six months
ended June 30, 2003 and 2002 (dollars in thousands):

<TABLE>
<CAPTION>
                                          2003          2002          % Change
                                          ----          ----          --------
<S>                                    <C>           <C>              <C>
Gross premiums written                 $ 271,677     $ 146,040            86%
Net premiums written                     227,905       126,637            80%
Premiums earned                          189,256        96,824            95%
Underwriting income                       14,650         3,040
Loss ratio                                  67.7%         67.5%
Expense ratio                               24.5%         29.4%
Combined ratio                              92.2%         96.9%
</TABLE>

         Net premiums written in 2003 increased by 80% compared with 2002. The
increase reflects higher prices as well as an increase in policies-in-force for
both primary and excess workers' compensation business. The expense ratio
decreased by 4.9 percentage points to 24.5% due to a 95% increase in premiums
earned with no significant increase in expenses other than commissions and
premium taxes.

         Following is a summary of insurance services results for the
alternative markets segment for the six months ended June 30, 2003 and 2002
(dollars in thousands):

<TABLE>
<CAPTION>
                                            2003          2002         % Change
                                            ----          ----         --------
<S>                                      <C>            <C>            <C>
Service revenues                         $ 51,379       $ 40,842          26%
Service expenses                          (40,728)       (33,858)         20%
                                         --------       --------
Service income before taxes              $ 10,651       $  6,984          53%
                                         ========       ========
</TABLE>

         Service revenues in 2003 increased 26% compared with 2002 primarily as
a result of an increase in service fees for managing assigned risk plans in ten
states. Service income before taxes increased 53% compared with 2002 due to
revenues increasing at a greater rate than expenses.

REINSURANCE The Company's reinsurance segment specializes in underwriting
property, casualty and surety reinsurance on both a treaty and facultative
basis. Following is a summary of underwriting results for the reinsurance
segment for the six months ended June 30, 2003 and 2002 (dollars in thousands):

<TABLE>
<CAPTION>
                                          2003          2002          % Change
                                          ----          ----          --------
<S>                                    <C>           <C>              <C>
Gross premiums written                 $ 505,754     $ 342,732            48%
Net premiums written                     421,876       264,699            59%
Premiums earned                          359,109       146,838           145%
Underwriting loss                         (6,044)       (8,691)
Loss ratio                                  71.6%         72.5%
Expense ratio                               30.1%         33.4%
Combined ratio                             101.7%        105.9%
</TABLE>

         Net premiums written in 2003 increased by 59% compared with 2002 as a
result of higher prices and new business. Net premiums written increased 102% to
$117 million for facultative reinsurance, 32% to $114 million for Lloyd's
reinsurance, 49% to $135 million for standard treaty business and 91% to $56
million for the other reinsurance units, Berkley Capital Underwriters, LLC and
Berkley Underwriting Partners, LLC. Net premiums written in 2003 also include
$21 million from the Company's new direct facultative underwriting unit, B F Re
Underwriters, LLC. Premiums earned in 2003 increased 145% compared with 2002,
primarily as a result of substantial growth in net written premiums during 2002.

         The 2003 loss ratio decreased 0.9 percentage points to 71.6%. The
decrease reflects the improved results for the current accident year as a result
of higher prices for both treaty and facultative risks which was offset by the
impact of reserve development on prior years. The 2003 and 2002 underwriting
results also reflect loss recoveries under the Company's aggregate reinsurance
agreement. (See Note 7 of "Notes to Consolidated Financial Statements".) The
2003

                                       15

<PAGE>

expense ratio decreased 3.3 percentage points to 30.1% primarily as a result of
a shift in the mix of business and increased volume.

REGIONAL The regional property casualty insurance segment principally provides
commercial property casualty insurance products. Following is a summary of
underwriting results for the regional segment for the six months ended June 30,
2003 and 2002 (dollars in thousands):

<TABLE>
<CAPTION>
                           2003         2002        % Change
                           ----         ----        --------
<S>                      <C>        <C>             <C>
Gross premiums written   $589,829   $ 475,005          24%
Net premiums written      475,979     376,358          26%
Premiums earned           412,294     328,643          25%
Underwriting income        44,114      19,793
Loss ratio                   58.1%       62.5%
Expense ratio                31.2%       31.5%
Combined ratio               89.3%       94.0%
</TABLE>

         Net premiums written in 2003 increased by 26.0% compared with 2002. The
increase reflects higher prices across all four regional units. The 2003 loss
ratio decreased by 4.4 percentage points to 58.1% primarily as a result of
higher prices in 2002 and 2003. Weather-related losses for the regional segment
were $21 million in 2003 compared with $22 million in 2002.

INTERNATIONAL The international segment offers personal and commercial property
casualty insurance in Argentina and savings and life products in the
Philippines. Following is a summary of underwriting results for the
international segment for the six months ended June 30, 2003 and 2002 (dollars
in thousands):

<TABLE>
<CAPTION>
                               2003         2002        % Change
                               ----         ----        --------
<S>                         <C>          <C>            <C>
Gross premiums written      $  36,466    $ 60,191          -39%
Net premiums written           33,972      52,256          -35%
Premiums earned                32,975      59,390          -44%
Underwriting income (loss)      1,323      (1,849)
Loss ratio                       52.4%       58.7%
Expense ratio                    43.6%       44.4%
Combined ratio                   96.0%      103.1%
</TABLE>

         Net premiums written in 2003 decreased by 35% compared with 2002. The
decrease was the result of the withdrawal from life insurance business in
Argentina and of lower exchange rates for the Argentine peso in 2003. The
combined ratio decreased 7.1 percentage points to 96.0% as a result of a
reduction in costs relating to the withdrawal from life insurance business in
Argentina and of improvement in underwriting results for the Argentine property
casualty business.

DISCONTINUED The discontinued segment consists of regional personal lines and
the alternative markets reinsurance, which were discontinued in 2001. Following
is a summary of underwriting results for the discontinued segment for the six
months ended June 30, 2003 and 2002 (dollars in thousands):

<TABLE>
<CAPTION>
                          2003      2002
                          ----      ----
<S>                      <C>     <C>
Gross premiums written   $  --   $ 10,312
Net premiums written        --      2,945
Premiums earned             --     34,984
Underwriting loss           --     (7,670)
</TABLE>

         The personal lines and alternative markets reinsurance business were
discontinued in 2001 and there was no activity in the first six months of 2003.

                                       16

<PAGE>

NET INVESTMENT INCOME Following is a summary of investment activity for the six
months ended June 30, 2003 and 2002 (dollars in thousands):

<TABLE>
<CAPTION>
                                      2003            2002         % Change
                                      ----            ----         --------
<S>                               <C>            <C>               <C>
Net investment income             $   102,181    $    88,716           15%
Average invested assets             4,867,379      3,664,756           33%
Annualized effective yield (1)            4.9%           5.4%
Realized investment and foreign
 Currency gains (losses)               57,083         (3,486)
Change in unrealized gains             51,499         15,008
</TABLE>

(1) Represents net investment income (before interest in funds held) expressed
    as a percentage of average invested assets.

         Net investment income in 2003 increased 15% compared with 2002. Average
invested assets increased 33% compared with 2002 as a result of cash flow from
operations and of the proceeds from a secondary stock offering in 2002 and a
debt offering in 2003. The average yield on investments was 4.9% in 2003
compared with 5.4% in 2002. The lower yield in 2003 reflects the decrease in
general interest rate levels as well as an increase in the portion of the
portfolio invested in cash and cash equivalents and municipal securities.

         The carrying value of the Company's investment portfolio as of June 30,
2003 and June 30, 2002 is as follows (dollars in thousands):

<TABLE>
<CAPTION>
                                         June 30,     December 31,
                                          2003           2002
                                       -----------    -----------
<S>                                    <C>            <C>
Cash and cash equivalents              $ 1,099,232    $   594,183
Fixed maturities                         3,721,275      3,511,522
Equity securities available for sale       305,874        205,372
Trading account(1)                         313,531        306,836
Other investments                           89,377         45,187
Due to brokers and clearing
  organizations                            (59,678)            --
                                       -----------    -----------
      Total                            $ 5,469,611    $ 4,663,100
                                       ===========    ===========
</TABLE>

(1) Represents trading account equity securities plus trading account
    receivables from brokers and clearing organizations less trading
    account equity securities sold but not yet purchased.

         At June 30, 2003, as compared with December 31, 2002, the fixed
maturity portfolio mix was as follows: U.S. Government securities were 15% (20%
in 2002); state and municipal securities were 43% (29% in 2002); corporate
securities were 11% (19% in 2002); mortgage-backed securities were 26% (27% in
2002); foreign bonds were 5% in 2003 and 2002.

INTEREST AND OTHER EXPENSES Interest and other expenses represents interest
expense, corporate expenses and other miscellaneous income and expenses.
Interest and other expenses were $49 million in 2003 compared with $40 million
in 2002. The increase reflects higher general and administrative expenses and an
increase in interest expense of $3 million as a result of a $200 million debt
offering in February 2003.

REALIZED GAINS Realized investment and foreign currency gains of $57.1 million
resulted primarily from the sale of fixed income securities in order to decrease
the duration of the portfolio and to increase the portion of the portfolio
invested in municipal securities.

INCOME TAXES AND MINORITY INTEREST The effective income tax rate was 31% in 2003
and 36% in 2002. The effective tax rate differs from the federal income tax rate
of 35% primarily because of tax-exempt investment income. Minority interest
represents the portion of the Company's international operations held by outside
investors.

                                       17

<PAGE>

OPERATING RESULTS FOR THE SECOND QUARTER OF 2003 COMPARED TO THE SECOND QUARTER
OF 2002

         The Company reported net income of $96 million, or $1.65 per share, for
the three months ended June 30, 2003 compared with $27 million, or $.52 per
share, for the corresponding 2002 period. Following are the components of net
income for the three months ended June 30, 2003 and 2002 (dollars in thousands):

<TABLE>
<CAPTION>
                                                            2003        2002
                                                            ----        ----
<S>                                                       <C>         <C>
Underwriting income                                       $ 68,133    $ 17,431
Insurance services                                           4,999       3,534
Net investment income                                       50,421      44,564
Interest and other expenses                                (25,903)    (19,873)
Realized investment and foreign currency gains (losses)     43,717      (8,449)
Income taxes and minority interest                         (45,527)     (9,833)
                                                          --------    --------
  Net income                                              $ 95,840    $ 27,374
                                                          ========    ========
</TABLE>

UNDERWRITING Following is a summary of underwriting results for the three months
ended June 30, 2003 and 2002 (dollars in thousands):

<TABLE>
<CAPTION>
                            2003          2002          % Change
                            ----          ----          --------
<S>                      <C>           <C>              <C>
SPECIALTY
Gross premiums written   $ 348,936     $ 252,995            38%
Net premiums written       321,083       219,764            46%
Premiums earned            271,333       174,053            56%
Underwriting income         38,821        23,182
Loss ratio                    61.5%         58.9%
Expense ratio                 24.1%         27.8%
Combined ratio                85.6%         86.7%

ALTERNATIVE MARKETS
Gross premiums written   $ 101,496     $  47,867           112%
Net premiums written        90,723        42,057           116%
Premiums earned            106,282        51,487           106%
Underwriting income          7,880         1,008
Loss ratio                    68.1%         68.1%
Expense ratio                 24.5%         30.0%
Combined ratio                92.6%         98.1%

REINSURANCE
Gross premiums written   $ 243,362     $ 175,789            38%
Net premiums written       207,077       135,410            53%
Premiums earned            196,632        82,259           139%
Underwriting loss           (2,284)       (7,284)
Loss ratio                    71.3%         74.9%
Expense ratio                 29.8%         34.0%
Combined ratio               101.1%        108.9%

REGIONAL
Gross premiums written   $ 293,971     $ 236,686            24%
Net premiums written       238,225       192,655            24%
Premiums earned            214,089       172,062            24%
Underwriting income         23,198         7,377
Loss ratio                    58.2%         64.3%
Expense ratio                 31.0%         31.4%
Combined ratio                89.2%         95.7%
</TABLE>

                                       18

<PAGE>

<TABLE>
<CAPTION>
                                  2003          2002          % Change
                               ----------   ------------      --------
<S>                            <C>          <C>               <C>
INTERNATIONAL
Gross premiums written         $   19,730   $     13,973          41%
Net premiums written               18,349         11,706          57%
Premiums earned                    18,132         20,206         -10%
Underwriting income (loss)            518         (1,105)
Loss ratio                           55.1%          56.0%
Expense ratio                        42.1%          49.5%
Combined ratio                       97.2%         105.5%

DISCONTINUED
Gross premiums written         $       --   $      1,693
Net premiums written                   --           (497)
Premiums earned                        --         12,621
Underwriting loss                      --         (5,747)

TOTAL
Gross premiums written         $1,007,495   $    729,003          38%
Net premiums written              875,457        601,095          46%
Premiums earned                   806,468        512,688          57%
Underwriting income                68,133         17,431
Loss ratio                           63.8%          65.6%
Expense ratio                        27.8%          31.0%
Combined ratio                       91.6%          96.6%
</TABLE>

         Net premiums written in 2003 increased 46% as a result of price
increases and new business as discussed above. The 2003 loss ratio decreased by
1.8 percentage points to 63.8% as a result of higher prices and more favorable
terms and conditions for current business as discussed above. The 2003 expense
ratio decreased 3.2 percentage points to 27.8% as a result of a 57% increase in
earned premiums compared with a 41% increase in underwriting expenses.

NET INVESTMENT INCOME Following is a summary of investment activity for the
three months ended June 30, 2003 and 2002 (dollars in thousands):

<TABLE>
<CAPTION>
                                     2003           2002          % Change
                                  -----------    -----------     ---------
<S>                               <C>            <C>             <C>
Net investment income             $    50,421    $    44,564         13%
Average invested assets             5,055,899      3,736,254         35%
Annualized effective yield                4.7%           5.4%
Realized investment and foreign
 Currency gains (losses)               43,717         (8,449)
</TABLE>

         Net investment income in 2003 increased 13% compared with 2002. Average
invested assets increased 35% compared with 2002 as a result of cash flow from
operations and of the proceeds from a secondary stock offering in 2002 and a
debt offering in 2003. The average yield on investments was 4.7% in 2003
compared with 5.4% in 2002. The lower yield in 2003 reflects the decrease in
general interest rate levels as well as an increase in the portion of the
portfolio invested in cash and cash equivalents and municipal securities.

INTEREST AND OTHER EXPENSES Interest and other expenses represents interest
expense, corporate expenses and other miscellaneous income and expenses.
Interest and other expenses were $26 million in 2003 compared with $20 million
in 2002. The increase reflects higher general and administrative expenses and an
increase in interest expense as a result of a $200 million debt offering in
February 2003.

REALIZED GAINS Realized investment and foreign currency gains of $43.7 million
resulted primarily from the sale of fixed income securities in order to decrease
the duration of the portfolio and to increase the portion of the portfolio
invested in municipal securities.

                                       19

<PAGE>

INCOME TAXES AND MINORITY INTEREST The effective income tax rate was 31% in 2003
and 42% in 2002. The effective tax rate differs from the federal income tax rate
of 35% primarily because of tax-exempt investment income. Minority interest
represents the portion of the Company's international operations held by outside
investors.

FINANCING ACTIVITY

         In February 2003, the Company issued $200 million aggregate principal
amount of 5.875% senior notes due February 2013. The notes were issued at 99.07%
of their face value amount and the net proceeds after expenses were
$196,840,000.

         During the first quarter of 2003, the Company repaid $35,793,000 of
6.5% senior subordinated notes and $25,000,000 of 6.71% senior notes upon their
respective maturities. During the second quarter of 2003, the company purchased
$4,957,000 (carrying value) of its trust preferred securities.

         At June 30, 2003, the Company's outstanding debt was $505 million (face
amount). The maturities of the debt are $40 million in 2005, $100 million in
2006, $89 million in 2008, $200 million in 2013 and $76 million in 2022. The
Company also has $195 million (face amount) of trust preferred securities that
mature in 2045.

         At June 30, 2003, stockholders' equity was $1,525 million and total
capitalization (stockholders' equity, debt and trust preferred securities) was
$2,218 million. The percentage of the Company's capital attributable to debt and
trust preferred securities was 31% at June 30, 2003 compared with 30% at
December 31, 2002.

         For background information concerning the Company's Liquidity and
Capital Resources, see the Company's Annual Report on Form 10-K for the year
ended December 31, 2002.

                                       20

<PAGE>

Item 3.  Quantitative and Qualitative Disclosure About Market Risk

         The Company's market risk generally represents the risk of gain or loss
that may result from the potential change in the fair value of the Company's
investment portfolio as a result of fluctuations in prices, interest rates and
currency exchange rates. The Company attempts to manage its interest rate risk
by maintaining an appropriate relationship between the average duration of the
investment portfolio and the approximate duration of its liabilities, i.e.,
policy claims and debt obligations.

         The duration of the investment portfolio declined from approximately
4.8 years at December 31, 2002 to 4.5 years at June 30, 2003. The overall market
risk relating to the Company's portfolio has remained similar to the risk at
December 31, 2002.

Item 4.  Controls and Procedures

         The Company's management, including its Chief Executive Officer and
Chief Financial Officer, have conducted an evaluation of the effectiveness of
the Company's disclosure controls and procedures pursuant to Securities Exchange
Act Rule 13a-14 as of the end of the period covered by this quarterly report.
Based on that evaluation, the Chief Executive Officer and Chief Financial
Officer concluded that the Company has in place appropriate controls and
procedures designed to ensure that information required to be disclosed by the
Company in the reports it files or submits under the Securities Exchange Act and
the rules thereunder, is recorded, processed, summarized and reported within the
time periods specified in the Commission's rules and forms. There have been no
significant changes in internal controls, or in factors that could significantly
affect internal controls, subsequent to the date the Chief Executive Officer and
Chief Financial Officer completed their evaluation.

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

         A subsidiary of the Company has a pending arbitration proceeding
pertaining to the interpretation of the contract terms in two reinsurance
agreements. The reinsurer's interpretation of the contract terms would reduce
the amount recoverable from the reinsurer by approximately $49 million as of
June 30, 2003. Although the ultimate outcome of this matter cannot be
determined, management believes that the Company's interpretation of these
agreements is correct and is vigorously pursuing this matter in arbitration.

         There is a pending arbitration pertaining to reinsurance contract
coverage issues where a subsidiary of the Company is the assuming reinsurer.
Based on currently available information, the Company believes that the
resolution of this pending arbitration will not have a material effect on its
financial condition or results of operations. However, if this arbitration is
decided adversely to the Company, the Company's potential exposure, in excess of
the amount reserved, is up to $9 million, after tax.

         The Company's subsidiaries are subject to other disputes, including
litigation and arbitration, arising in the ordinary course of their insurance
and reinsurance businesses. The Company's estimates of the costs of settling
such matters are reflected in its aggregate reserves for losses and loss
expenses, and the Company does not believe that the ultimate outcome of such
matters, individually or in the aggregate, will have a material adverse effect
on its financial condition or results of operations.

                                       21

<PAGE>

Item 2.  Changes in Securities and Use of Proceeds

         On April 4, 2003, 300,000 Restricted Stock Units (RSU) were awarded to
officers of the Company and its subsidiaries. Each RSU represents the right to
receive one share of common stock, conditioned on the employee's satisfying
certain requirements outlined in the award agreement. The RSU's vest after five
years of continuous employment. The shares were not registered under the
Securities Act of 1933 in reliance on the exemption provided in Section 4(2)
thereof for transactions not involving a public offering.

         On May 20, 2003, the Company issued 158 shares of its Common Stock to
each of its nine directors (1,422 shares in the aggregate). The shares were
issued as a portion of annual director's fees pursuant to the Company's 1997
Director Stock Plan. The shares were not registered under the Securities Act of
1933 in reliance on the exemption provided in Section 4(2) thereof for
transactions not involving a public offering.

Item 4.  Submission of Matters to a Vote of Security Holders

         The Company held its Annual Meeting of Stockholders on May 20, 2003.
The meeting involved the election of directors for a term to expire at the
Annual Meeting of Stockholders to be held in the year 2006, the approval of an
amendment and restatement of the W. R. Berkley Corporation 1992 Stock Option
Plan in the form of the W. R. Berkley Corporation 2003 Stock Incentive Plan, the
approval of an amendment to the Company's Restated Certificate of Incorporation
to increase the authorized number of shares of common stock from 80,000,000 to
150,000,000, and the ratification of the appointment of independent auditors for
the year 2003. The directors elected and the results of the voting are as
follows:

         (i)      Election of Directors:

<TABLE>
<CAPTION>
     Nominee         Votes For    Votes Withheld
- ------------------   ----------   --------------
<S>                  <C>          <C>
William R. Berkley   40,687,706     10,773,284

George G. Daly       50,618,870        842,120

Philip J. Ablove     39,734,322     11,726,668
</TABLE>

         (ii)     Approval of the amendment and restatement of the W. R. Berkley
                  Corporation 1992 Stock Option Plan in the form of the W. R.
                  Berkley Corporation 2003 Stock Incentive Plan:

<TABLE>
<CAPTION>
Votes For         Votes Against             Votes Abstained
- ----------        -------------             ---------------
<S>               <C>                       <C>
44,374,797          7,025,148                    61,045
</TABLE>

         (iii)    Approval of the amendment to the Company's Restated
                  Certificate of Incorporation to increase the authorized number
                  of shares of common stock from 80,000,000 to 150,000,000:

<TABLE>
<CAPTION>
Votes For         Votes Against             Votes Abstained
- ----------        -------------             ---------------
<S>               <C>                       <C>
49,833,479          1,567,056                    60,455
</TABLE>

         (iv)     Ratification of Auditors:

<TABLE>
<CAPTION>
Votes For         Votes Against             Votes Abstained
- ----------        -------------             ---------------
<S>               <C>                       <C>
50,953,779           471,123                     36,088
</TABLE>

                                       22

<PAGE>

Item 6. Exhibits and Reports on Form 8-K

         (a)      Exhibits

         Number

         (3.1)    The Company's Restated Certificate of Incorporation, as
                  amended through May 19, 2003.

         (3.2)    Amendment, dated May 20, 2003, to the Company's Restated
                  Certificate of Incorporation, as amended.

         (10.1)   W. R. Berkley 2003 Stock Incentive Plan (incorporated by
                  reference to Annex A from the Company's Proxy Statement for
                  the Annual Meeting of Stockholders held on May 20, 2003).

         (10.2)   Form of Restricted Stock Unit Agreement.

         (31.1)   Certification of the Chief Executive Officer pursuant to
                  Section 302 of the Sarbanes-Oxley Act of 2002.

         (31.2)   Certification of the Chief Financial Officer pursuant to
                  Section 302 of the Sarbanes-Oxley Act of 2002.

         (32.1)   Certification of the Chief Executive Officer and Chief
                  Financial Officer pursuant to 18 U.S.C. Section 1350, as
                  adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                  2002.

         (b)      Reports on Form 8-K

         During the quarter ended June 30, 2003, the Company filed the following
Report on Form 8-K:

         Report dated April 25, 2003 with respect to the press release relating
to the announcement of the Company's results of operations for the first quarter
of 2003 (under item 9, for information required by item 12, of Form 8-K).

                                       23

<PAGE>

SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.

                           W. R. BERKLEY CORPORATION

Date: August 6, 2003       /s/ WILLIAM R. BERKLEY
                           ------------------------------
                           William R. Berkley
                           Chairman of the Board and
                           Chief Executive Officer

Date: August 6, 2003       /s/ EUGENE G. BALLARD
                           ------------------------------
                           Eugene G. Ballard
                           Senior Vice President,
                           Chief Financial Officer
                           and Treasurer

                                       24

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>3
<FILENAME>y89010exv3w1.txt
<DESCRIPTION>RESTATED CERTIFICATE OF INCORPORATION
<TEXT>
<PAGE>
EXHIBIT 3.1

                      RESTATED CERTIFICATE OF INCORPORATION

                                       OF

                             FINEVEST SERVICES, INC.

                  FINEVEST SERVICES, INC., a corporation organized and existing
under the laws of the State of Delaware, hereby certifies as follows:

                  1. The name of the corporation is Finevest Services, Inc. and
the name under which the corporation was originally incorporated is Automated
Financial Management, Inc. The date of filing its original Certificate of
Incorporation with the Secretary of State was January 20, 1970.

                  2. This Restated Certificate of Incorporation restates and
integrates and further amends the Certificate of Incorporation of this
corporation by changing the name of the corporation to "W. R. Berkley
Corporation," by deleting certain clauses of Article Third relating to purposes
and objects of the corporation, by decreasing the number of shares which the
corporation is authorized to issue and increasing the par value per share, by
adding a proviso to Article SEVENTH (1) and Article SEVENTH (2)(a), by changing
the requirements for removal of directors, by adding a new Article with respect
to shareholder voting rights and by changing certain requirements with respect
to amendments.

                  3. The text of the Certificate of Incorporation as amended or
supplemented heretofore is further amended hereby to read as herein set forth in
full.

                  "FIRST: The name of the corporation (hereinafter called the
"Corporation") is W. R. BERKLEY CORPORATION.

<PAGE>

                  SECOND: The respective names of the County and of the City
within the County in which the registered office of the Corporation is to be
located in the State of Delaware are the County of New Castle and the City of
Wilmington. The name of the registered agent of the Corporation is The
Corporation Trust Company. The street and number of said registered office and
the address by street and number of said registered agent is 100 West Tenth
Street, Wilmington, Delaware.

                  THIRD: The nature of the business of the Corporation and the
objects or purposes to be transacted, promoted or carried on by it are as
follows:

                           To engage in any lawful act or activity for which
                           corporations may be organized under the General
                           Corporation Law of Delaware.

                  FOURTH: The total number of shares of stock which the
Corporation shall have authority to issue is FIVE MILLION (5,000,000) and the
par value of each such share is Twenty Cents ($.20) amounting in the aggregate
to ONE MILLION DOLLARS ($1,000,000).

                  The designation and the powers, preferences and rights, and
the qualifications, limitations or restrictions thereof are as follows:

                           (a)      The stock of the Corporation shall be of one
                                    class and shall be denominated "Common
                                    Stock".

                           (b)      Each share of Common Stock shall be entitled
                                    to one vote.

                  FIFTH: The Corporation is to have perpetual existence.

                  SIXTH: The private property of the stockholders of the
Corporation shall not be subject to the payment of corporate debts to any extent
whatever.

                                      -2-

<PAGE>

                  SEVENTH: For the management of the business and for the
conduct of the affairs of the Corporation, and in further definition, limitation
and regulation of the powers of the Corporation and of its directors and
stockholders, it is further provided:

                           1. The number of directors of the Corporation shall
                  be as specified in the By-Laws of the Corporation but such
                  number may from time to time be increased or decreased in such
                  manner as may be prescribed by the By-Laws, subject to the
                  requirements of Article TENTH of this Certificate of
                  Incorporation. The election of directors need not be by
                  ballot.

                           2. In furtherance and not in limitation of the powers
                  conferred by the laws of the State of Delaware, the Board of
                  Directors is expressly authorized and empowered:

                                    (a) To make, alter, amend and repeal
                           By-Laws, subject to the power of the stockholders to
                           alter or repeal the By-Laws made by the Board of
                           Directors and subject to the requirements of Article
                           TENTH of this Certificate of Incorporation.

                                    (b) Subject to the applicable provisions of
                           the By-Laws then in effect, to determine, from time
                           to time, whether and to what extent and at what times
                           and places and under what conditions and regulations
                           the accounts and books of the Corporation, or any of
                           them, shall be open to the inspection of the
                           stockholders, and no stockholder shall have any right
                           to inspect any account or book or document of the
                           Corporation, except as conferred by the laws of the
                           State of Delaware, unless and until authorized so to
                           do by resolution of the Board of Directors or of the
                           stockholders of the Corporation.

                                    (c) Without the assent or vote of the
                           stockholders, to authorize and issue obligations of
                           the Corporation, secured or unsecured, to include
                           therein such provisions as to redeemability,
                           convertibility or otherwise, as the Board of
                           Directors, in its sole discretion, may determine, and
                           to authorize the mortgaging or pledging, as security
                           therefor, of any property of the Corporation, real or
                           personal, including after-acquired property.

                                    (d) To determine whether any, and, if any,
                           what part, of the net profits of the Corporation or
                           of its net assets in excess of its capital shall be
                           declared in dividends and paid to the stockholders,
                           and to direct and determine the use and disposition
                           of any such net profits or such net assets in excess
                           of capital.

                                      -3-

<PAGE>

                                    (e) To fix from time to time the amount of
                           profits of the Corporation to be reserved as working
                           capital or for any other lawful purpose.

                                    (f) To establish bonus, profit-sharing or
                           other types of incentive or compensation plans for
                           the employees (including officers and directors) of
                           the Corporation and to fix the amount of profits to
                           be distributed or shared and to determine the persons
                           to participate in any such plans and the amounts of
                           their respective participations.

                                    (g) By resolution passed by a majority of
                           the whole Board to designate one or more committees
                           to consist of two or more directors of the
                           Corporation which, to the extent provided in the
                           resolution or in the By-Laws of the Corporation
                           shall have and may exercise the powers of the Board
                           of Directors in the management of the business and
                           affairs of the Corporation and may authorize the seal
                           of the Corporation to be affixed to all papers which
                           may require it, such committee or committees to have
                           such name or names as may be stated in the By-Laws of
                           the Corporation or as determined from time to time by
                           resolution adopted by the Board of Directors. In
                           addition to the powers and authorities hereinbefore
                           or by statute expressly conferred upon it, the Board
                           of Directors may exercise all such powers and do all
                           such other acts and things as may be exercised or
                           done by the Corporation, subject, nevertheless, to
                           the provisions of the laws of the State of Delaware,
                           of the Certificate of Incorporation and of the
                           By-Laws of the Corporation.

                           3. Any director or any officer elected or appointed
                  by the stockholders or by the Board of Directors may be
                  removed at any time for cause by the majority vote of the
                  members of the Board then in office, or, with or without
                  cause, by the vote or consent of the holders of at least
                  four-fifths (80%) of the outstanding stock of the Corporation
                  entitled to vote for the election of directors.

                           4. No contract or other transaction between the
                  Corporation and any other corporation and no other act of the
                  Corporation shall, in the absence of fraud, in any way be
                  affected or invalidated by the fact that any of the directors
                  of the Corporation are pecuniarily or otherwise interested in,
                  or are directors or officers of, such other corporation. Any
                  director of the Corporation individually or any firm or
                  association of which any director may be a member, may be a
                  party to, or may be pecuniarily or otherwise interested in any
                  contract or transaction of the Corporation, provided that the
                  fact that be individually or such firm or association is so
                  interested shall be disclosed or

                                      -4-

<PAGE>

                  shall have been known to the Board of Directors or a majority
                  of such members thereof as shall be present at any meeting of
                  the Board of Directors at which action upon any such contract
                  or transaction shall be taken. Any director of the Corporation
                  who is also a director or officer of such other corporation or
                  who is so interested may be counted in determining the
                  existence of a quorum at any meeting of the Board of Directors
                  which shall authorize any such contract or transaction, with
                  like force and effect as if he were not such director or
                  officer of such other corporation or not so interested. Any
                  director of the Corporation may vote upon any contract or
                  other transaction between the Corporation and any subsidiary
                  or affiliated corporation without regard to the fact that he
                  is also a director of such subsidiary or affiliated
                  corporation.

                           Any contract, transaction or act of the Corporation
                  or of the directors, which shall be ratified by a majority of
                  a quorum of the stockholders of the Corporation at any annual
                  meeting, or at any special meeting called for such purpose,
                  shall, insofar as permitted by law or by the Certificate of
                  Incorporation of the Corporation, be as valid and as binding
                  as though ratified by every stockholder of the Corporation;
                  provided, however, that any failure of the stockholders to
                  approve or ratify any such contract, transaction or act, when
                  and if submitted, shall not be deemed in any way to invalidate
                  the same or deprive the Corporation, its directors, officers
                  or employees, of its or their right to proceed with such
                  contract, transaction or act.

                           5. Subject to any limitation in the By-Laws, the
                  members of the Board of Directors shall be entitled to
                  reasonable fees, salaries or other compensation for their
                  services and to reimbursement for their expenses as such
                  members. Nothing contained herein shall preclude any director
                  from serving the Corporation, or any subsidiary or affiliated
                  corporation, in any other capacity and receiving proper
                  compensation therefor.

                           6. If the By-Laws so provide, the stockholders and
                  Board of Directors of the Corporation shall have power to hold
                  their meetings, to have an office or offices and to keep the
                  books of the Corporation, subject to the provisions of the
                  laws of Delaware, outside of said State at such place or
                  places as may from time to time be designated by them.

                                       -5-

<PAGE>

                  EIGHTH: Whenever a compromise or arrangement is proposed
between this Corporation and its creditors or any class of them and/or between
this Corporation and its stockholders or any class of them, any court of
equitable jurisdiction within the State of Delaware may, on the application in a
summary way of this Corporation or of any creditor or stockholder thereof, or on
the application of any receiver or receivers appointed for this Corporation
under the provisions of Section 291 of Title 8 of the Delaware Code, or on the
application of trustees in dissolution or of any receiver or receivers appointed
for this Corporation under the provisions of Section 279 of Title 8 of the
Delaware Code, order a meeting of the creditors or class of creditors, and/or of
the stockholders or class of stockholders of this corporation, as the case may
be, to be summoned in such manner as the said court directs.

                  If a majority in number representing three-fourths in value
of the creditors or class of creditors, and/or of the stockholders or class of
stockholders of this Corporation, as the case may be, agree to any compromise or
arrangement and to any reorganization of this Corporation as a consequence of
such compromise or arrangement, the said compromise or arrangement and the said
reorganization shall, if sanctioned by the court to which the said application
has been made, be binding on all the creditors or class of creditors and/or on
all the stockholders or class of stockholders of this Corporation, as the case
may be, and also on this Corporation.

                  NINTH: No dividend shall be declared or paid which shall
impair the capital of the Corporation nor shall any distribution of assets be
made to any holder of the Corporation's

                                      -6-

<PAGE>

capital stock unless the value of the assets of the Corporation remaining after
such payment or distribution is at least equal to the aggregate of its debts and
liabilities, including capital. A director shall be fully protected in relying
in good faith upon the books of account of the Corporation or statements
prepared by any of its officials as to the value and amount of the assets,
liabilities and/or net profits of the Corporation, or any other facts pertinent
to the existence and amount of surplus or other funds from which dividends might
properly be declared and paid.

                  TENTH: 1. Except as set forth in Paragraph 4 of this Article
TENTH, the affirmative vote or consent of the holders of four-fifths (80%) of
the stock of the Corporation entitled to vote in elections of directors shall be
required to authorize any of the following transactions:

                  (a) merger or consolidation of the Corporation into any other
         corporation; or

                  (b) sale, lease, exchange, mortgage or other disposition of
         all or any substantial part of the assets of the Corporation to any
         other corporation, person or other entity; or

                  (c) sale or lease by any other corporation, person or entity
         to the Corporation or any subsidiary thereof of any securities or
         assets (except assets having any aggregate fair market value of less
         than $4,000,000) in exchange for voting securities (or securities
         convertible into voting securities, or options, warrants, or rights to
         purchase voting securities) of the Corporation or any subsidiary
         thereof

if, as of the record date for the determination of stockholders entitled to
notice thereof and to vote thereon or consent thereto, such other corporation,
person or entity is, or has been at any time within the preceding two years, the
beneficial owner directly

                                      -7-

<PAGE>

or indirectly of 5% or more of the outstanding shares of stock of the
Corporation entitled to vote in elections of directors. Such affirmative vote or
consent shall be in addition to the vote or consent of the holders of the stock
of the Corporation otherwise required by law or any agreement between the
Corporation and any national securities exchange.

                  2. For purposes of this Article TENTH any corporation, person
or other entity shall be deemed to be the beneficial owner of any shares of
stock of the Corporation,

                  (a) which it owns directly, whether or not of record; or

                  (b) which it has the right to acquire pursuant to any
         agreement or understanding or upon exercise of conversion rights,
         warrants or options or otherwise; or

                  (c) which are beneficially owned, directly or indirectly
         (including shares deemed to be owned through application of clause (b)
         above) by any "affiliate" or "associate" as those terms are defined in
         Rule 12b-2 of the General Rules and Regulations under the Securities
         Exchange Act of 1934 as in effect on April 1, 1973; or

                  (d) which are beneficially owned, directly or indirectly
         (including shares deemed owned through application of clause (b) above)
         by any other corporation, person or entity with which it or its
         "affiliate" or "associate" has any agreement or arrangement or
         understanding for the purpose of acquiring, holding, voting or
         disposing stock of the Corporation.

                  For the purposes of this Article TENTH, the outstanding shares
of any class of stock of the Corporation shall include shares deemed owned
through the application of clauses 2 (b) (c) and (d) above, but shall not
include any other shares which may be issuable pursuant to any agreement or upon
exercise of conversion rights, warrants, options or otherwise.

                                      -8-

<PAGE>

                  3. The Board of Directors shall have the power and duty to
determine for the purposes of this Article TENTH on the basis of information
known to the Corporation, whether:

                  (a) such other corporation, person or other entity
         beneficially owns more than 5% of the outstanding shares of stock of
         the Corporation entitled to vote in elections of directors,

                  (b) a corporation, person, or entity is an "affiliate" or
         "associate" of another,

                  (c) the assets being acquired by the Corporation, or any
         subsidiary thereof, have an aggregate fair market value of less than
         $4,000,000, and

                  (d) the memorandum of understanding referred to in Paragraph 4
         below is substantially consistent with the transaction covered thereby.

Any such determination shall be conclusive and binding for all purposes of this
Article TENTH.

                  4. The provisions of this Article TENTH shall not apply to,

                  (a) any merger or similar transaction with any corporation if
         the Board of Directors of the Corporation has approved a memorandum of
         understanding with such other corporation with respect to such
         transaction prior to the time that such other corporation shall have
         become a beneficial owner of more than 5% of the outstanding shares of
         stock of the Corporation entitled to vote in elections of directors; or

                  (b) any merger or consolidation of the Corporation with, or
         any sale or lease to the Corporation or any subsidiary thereof of any
         of the assets of, any corporation of which a majority of the
         outstanding shares of all classes of stock entitled to vote in
         elections of directors is owned of record or beneficially by the
         Corporation and its subsidiaries.

                  ELEVENTH: 1. From time to time any of the provisions of this
Certificate of Incorporation may be amended, altered or repealed, and other
provisions authorized by the laws of the State of Delaware at the time in force
may be added or inserted in the manner and at the time prescribed by said laws,
and all rights at any time conferred upon the stockholders of the Corporation by
this Certificate of Incorporation are granted subject to the provisions of this
Article ELEVENTH.

                                      -9-

<PAGE>

                  2. Notwithstanding the foregoing Paragraph 1 or any other
provision of this Certificate of Incorporation or of the By-Laws of the
Corporation (and in addition to any other vote that may be required by statute)
the vote of the holders of four-fifths (80%) of all holders of the stock of the
Corporation entitled to vote for the election of directors shall be required to
amend, alter, change or repeal Articles SEVENTH, TENTH or ELEVENTH of this
Certificate of Incorporation or Article III, Sections 1 or 2 of the By-laws of
this Corporation."

                  4. This Restated Certificate of Incorporation was duly adopted
by written consent of the stockholders in accordance with the applicable
provisions of Sections 228, 242 and 245, of the General Corporation Law of the
State of Delaware and written notice of the adoption of this Restated
Certificate of Incorporation has been given as provided by Section 228 of the
General Corporation Law of the State of Delaware to every stockholder entitled
to such notice.

                  5. That the capital of said corporation will not be reduced
under or by reason of any amendment in this Restated Certificate of
Incorporation.

                  IN WITNESS WHEREOF, said Finevest Services, Inc. has caused
this certificate to be signed by William R. Berkley its President, and attested
by David C. Campbell, its Secretary, this 4th day of May, 1973.

                                                 FINEVEST SERVICES, INC.

                                                 By /s/ William R. Berkley
                                                    -----------------------
                                                     President

ATTEST:

By /s/ David C. Campbell
   ----------------------
   Secretary

<PAGE>

STATE OF NEW YORK )
                              :    ss.:
COUNTY OF NEW YORK)

                  WILLIAM R. BERKLEY, being duly sworn, deposes and says that he
is the person who signed the foregoing Restated Certificate of Incorporation;
that he signed said Certificate in the capacity set beneath his signature
thereon; that he has read the foregoing Restated Certificate of Incorporation
and knows the contents thereof; and that the statements contained therein are
true.

                                                     /s/ William R. Berkley
                                                     -----------------------
                                                     William R. Berkley

Subscribed and sworn to
before me on May 4th, 1973.

/s/ Richard Katz
- -----------------
Notary Public

                                              RICHARD KATZ
                                    NOTARY PUBLIC, STATE OF NEW YORK
                                             NO. 31-7176990
                                      QUALIFIED IN NEW YORK COUNTY
                                   COMMISSION EXPIRES MARCH 30, 1974

(Seal)

<PAGE>

                            CERTIFICATE OF AMENDMENT

                                       OF

                      RESTATED CERTIFICATE OF INCORPORATION

                                       OF

                            W. R. BERKLEY CORPORATION

         The undersigned, being the Chairman of W. R. BERKLEY CORPORATION, a
corporation existing under the laws of the State of Delaware, does hereby
certify:

         FIRST: That Article FOURTH of the Restated Certificate of Incorporation
of said corporation be and it hereby is amended to read as follows:

                  FOURTH: The aggregate number of shares of capital stock of all
classes which the Corporation shall have authority to issue is ten million
(10,000,000) shares, of which nine million (9,000,000) shares are to be Common
Stock of the par value of twenty cents ($.20) each, and one million (1,000,000)
shares are to be Preferred Stock of the par value of ten cents ($.10) each.

                  The classes of Preferred Stock and Common Stock shall have the
following respective terms:

                                PREFERRED STOCK

                  1. The Preferred Stock may be issued from time to time in one
or more series, each such series to have such

<PAGE>

distinctive designation or title as may be fixed by the Board of Directors prior
to the issuance of any shares thereof. Each such series may differ from every
other series already outstanding in such respects as may be determined from time
to time by the Board of Directors prior to the issuance of any shares thereof,
including but not limited to the following:

                  (a) The rate of dividend, if any, which the Preferred Stock of
         any such series shall be entitled to receive, whether the dividends of
         such series shall be cumulative or non--cumulative and, if such
         dividends shall be cumulative, the date from which they shall be
         cumulative.

                  (b) The right or obligation, if any, of the Corporation to
         redeem shares of Preferred Stock of any series and the amount per share
         which the Preferred Stock of any such series shall be entitled to
         receive in case of the redemption thereof, and the right of the
         Corporation, if any, to reissue any such shares after the same shall
         have been redeemed.

                  (c) The amount per share which the Preferred Stock of any such
         series shall be entitled to receive in case of the voluntary
         liquidation, dissolution or winding up of the Corporation, or in case
         of the involuntary liquidation, dissolution or winding up of the
         Corporation.

                                      -2-

<PAGE>

                  (d) The right, if any, of the holders of Preferred Stock of
         any such series to convert the same into other classes of stock, and
         the terms and conditions of such conversion.

                  (e) The voting power, if any, of the holders of Preferred
         Stock of any series, and the terms and conditions under which they may
         exercise such voting power.

                  (f) The terms of the sinking fund or fund of a similar nature,
         if any, to be provided for the Preferred Stock of any such series.

                  (g) Such other preferences and relative participating,
         optional or other special rights, and the qualifications, limitations
         or restrictions thereof, which are fixed by resolution or resolutions
         of the Board of Directors (the "Authorization Resolutions") providing
         for the issuance of the Preferred Stock of any such series.

                  The description and terms of the Preferred Stock of each
series in respect of the foregoing particulars shall be fixed and determined by
the Board of Directors by appropriate resolution or resolutions at or prior to
the time of the authorization of the issue of the original shares of each such
series.

                                      -3-

<PAGE>

                  2. In case the stated dividends (to the extent then payable)
and the amounts payable on liquidation, dissolution or winding up of the
Corporation are not paid in full, the shareholders of all series of the
Preferred Stock shall share in the payment of dividends, including
accumulations, if any, and in any distribution of assets other than by way of
dividends, in accordance with and to the extent permitted by the preferences
fixed by the Authorization Resolutions of all series of Preferred Stock then
outstanding.

                  3. The holders of the Preferred Stock shall be entitled to
receive, when and as declared by the Board of Directors, out of funds legally
available therefor, preferential dividends in cash at the annual rate fixed for
each particular series. The holders of the Preferred Stock of each series shall
be entitled to receive any additional dividends thereon as may be specified in
the Authorization Resolutions of such series.

                  4. So long as any of the Preferred Stock remains outstanding,
in no event shall any dividend whatever, whether in cash or other property
(other than in shares of Common Stock), be paid or declared on the Common Stock
by the Corporation unless (a) the full dividends of the Preferred Stock for all
past dividend periods from the respective date or dates on which they become
cumulative shall have been paid and the full dividend thereon for the then
current dividend period shall have been paid or declared and a sum set apart
sufficient

                                      -4-

<PAGE>

for the payment thereof, and (b) if at any time the Corporation is obligated to
retire or redeem shares of any series of the Preferred Stock pursuant to a
sinking fund or a fund of a similar nature or otherwise, all arrears, if any, in
respect of the retirement or redemption of the Preferred Stock of all such
series shall have been made good. Subject to the foregoing provisions, such
dividends (payable in cash, stock or otherwise) as may be determined by the
Board of Directors may be declared and paid on the Common Stock in accordance
with paragraph 7 of this Article FOURTH from time to time out of the remaining
funds of the Corporation legally available therefor, and the Preferred Stock
shall not, unless otherwise permitted by the Authorization Resolutions of such
series, be entitled to participate in any such dividend, whether payable in
cash, stock or otherwise. No limitations, conditions or restrictions whatever
are imposed by the provisions of this paragraph 4 upon the purchase or
redemption or other acquisitions by the Corporation of any class or classes of
any capital stock or other securities of the Corporation.

                  5. In the event of any liquidation, dissolution or winding up
of the Corporation, whether voluntary or involuntary, before any distribution or
payment shall be made to the holders of the Common Stock, the holders of the
Preferred Stock of each series shall be entitled to be paid in cash the
applicable liquidation price per share determined the manner, or in the amount,
fixed at the time of the original

                                      -5-

<PAGE>

authorization of issuance of shares of such respective series, together with a
sum, in the case of each share of the Preferred Stock, computed at the annual
dividend rate for the series of which the particular share is a part from the
date on which dividends on such share became cumulative to the date fixed for
such distribution or payment less the aggregate amount of all dividends
theretofore and on such distribution or payment date paid thereon. If such
payment shall have been made in full to the holders of the Preferred Stock, the
remaining assets and funds of the Corporation shall be distributed among the
holders of the Common Stock and the holders of the Preferred Stock of each
series, if any, entitled to participate in the remaining assets and funds of the
Corporation in accordance with the terms fixed in the Authorization Resolutions
of such series.

                  6. Notice of every redemption of Preferred Stock at the option
of the Board of Directors shall be mailed at least 30 days in advance of the
date determined by the Board of Directors for such redemption (herein called the
"redemption date") to each holder of shares so to be redeemed at his address as
the same shall appear on the books of the Corporation as of the date of mailing
such notice. Such notice shall state the redemption date and the number of
shares to be redeemed. The holder or holders of the shares of such stock to be
redeemed shall deliver the certificate or certificates representing such shares,
properly endorsed for transfer, to

                                      -6-

<PAGE>

the Corporation at its principal place of business on the redemption date,
against payment therefor. Any Federal or State documentary stamp tax payable on
the transfer to the Corporation of the shares to be redeemed shall be paid by
the Corporation. The shares of such stock to be redeemed shall be selected in
such manner as the Board of Directors may determine, it being expressly
understood that any such redemption need not be ratable among the holders of any
class or classes of the Corporation's capital stock and may be limited to all or
part of the shares of one or more classes of the stock held by one or more
holders of stock. The Board of Directors shall have full power and authority,
subject to the limitations and provisions herein contained, to prescribe the
terms and conditions upon which such stock shall be redeemed from time to time.
If any notice of redemption shall have been given as aforesaid, and if on or
before the redemption date the funds necessary for such redemption shall have
been set aside by the Corporation, separate and part from its other funds, in
trust for the pro rata benefit of the holder or holders of the shares so called
for redemption, then, from and after the redemption date, notwithstanding that
any certificates for shares of stock so called for redemption shall not have
been surrendered for cancellation, the shares represented thereby shall not be
deemed outstanding, the right to receive any dividends thereon shall cease to
accrue from and after the redemption date and all rights of the holder or
holders of the shares so called for redemption shall forthwith, after the

                                      -7-

<PAGE>

redemption date, cease and terminate, excepting only the right to receive the
amount payable in respect of such redemption but without interest. Any moneys so
set aside by the Corporation and unclaimed at the end of six years from the
redemption date shall, to the extent permitted by applicable law, revert to the
general funds of the Corporation after which reversion such funds shall become
contributions to the capital of the Corporation and the holder or holders of
such shares shall have no further claim or right to such funds.

                                  COMMON STOCK

                  7. Except as otherwise required by law and except as expressly
provided in this Certificate of Incorporation or in any resolution or
resolutions adopted by the Board of Directors pursuant to authority expressly
vested in it by the foregoing provisions of this Article FOURTH with respect to
the Preferred Stock, the holders of the Common Stock (i) shall have the
exclusive voting rights for the election of directors and for all other
purposes, each holder of Common Stock being entitled to one vote for each share
thereof held by such holder except as otherwise required by law, and (ii) shall
be entitled to receive dividends declared payable in such property or shares of
the capital stock of the Corporation when and as declared by the Board of
Directors.

                                      -8-

<PAGE>

         SECOND: That the amendment was duly adopted in accordance with the
provisions of Section 242 of the General Corporation Law of the State of
Delaware.

         IN WITNESS WHEREOF, I have signed this certificate this 14th day of
August, 1984.

                                                 /s/ William R. Berkley
                                                 ----------------------------
                                                 William R. Berkley, Chairman

Attest:

/s/ Robert V. Mendelsohn
- -------------------------------
Robert V. Mendelsohn, Secretary

                                      -9-

<PAGE>

                            CERTIFICATE OF AMENDMENT

                                       OF

                      RESTATED CERTIFICATE OF INCORPORATION

                                       OF

                            W. R. BERKLEY CORPORATION

         The undersigned, being the Chairman of W. R. BERKLEY CORPORATION, a
corporation existing under the laws of the State of Delaware, hereby certifies
that:

         1. The first paragraph of Article FOURTH of the Restated Certificate of
Incorporation of said corporation be and it hereby is amended to read as
follows:

         FOURTH: The aggregate number of shares of capital stock of all classes
which the Corporation shall have authority to issue is forty-five million
(45,000,000) shares, of which forty million (40,000,000) shares are to be Common
Stock of the par value of twenty cents ($.20) each, and five million (5,000,000)
shares are to be Preferred Stock of the par value of ten cents ($.l0) each.

         2. The amendment was duly adopted in accordance with the provisions of
Section 242 of the General Corporation Law of the State of Delaware.

         IN WITNESS WHEREOF, I have signed this certificate this 16th day of
May, 1986.

                                          /s/ William R. Berkley
                                          -------------------------------
                                              William R. Berkley, Chairman

Attest:

/s/ Brian C. Kelly
- -------------------------
Brian C. Kelly, Secretary

<PAGE>

                            CERTIFICATE OF AMENDMENT

                                       OF

                      RESTATED CERTIFICATE OF INCORPORATION

                                       OF

                            W. R. BERKLEY CORPORATION

         The undersigned, being the Chairman of W. R. BERKLEY CORPORATION, a
corporation existing under the laws of the State of Delaware, hereby certifies
that:

         1. A new Article TWELFTH be and it hereby is added to the Restated
Certificate of Incorporation of said corporation, to read as follows:

                  TWELFTH: 1. A director of the Corporation shall not be
personally liable to the Corporation or its stockholders for monetary damages
for breach of fiduciary duty as a director, except for liability (i) for any
breach of the director's duty of loyalty to the Corporation or its stockholders,
(ii) for acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law, (iii) under Section 174 of the
Delaware General Corporation Law, or (iv) for any transaction from which the
director derived any improper personal benefit. If the Delaware General
Corporation Law is amended after approval by the stockholders of this Article to
authorize corporate action further eliminating or limiting the personal
liability of directors, then the liability of a director of the Corporation
shall be eliminated or limited to the fullest extent permitted by the Delaware
General Corporation Law, as so amended.

<PAGE>

         2. Right to Indemnification. Each person who is made a party or is
threatened to be made a party to or is otherwise involved in any action, suit or
proceeding, whether civil, criminal, administrative or investigative
(hereinafter a "proceeding"), by reason of the fact that he is or was serving as
a director, officer or employee of the Corporation (or is or was serving at the
request of the Corporation in a similar capacity with another entity, including
employee benefit plans) (hereinafter an "indemnitee"), shall be indemnified and
held harmless by the Corporation to the fullest extent authorized by the
Delaware General Corporation Law, as in effect. This indemnification will cover
all expense, liability and loss (including attorneys' fees, judgements, fines,
ERISA excise taxes or penalties and settlement amounts) reasonably incurred by
the indemnitee in connection with a proceeding. Such indemnification shall
continue as to an indemnitee who has ceased to be a director, officer, employee
or agent and shall continue to the benefit of the indemnitee's heirs, executors
and administrators. Except as provided in paragraph (b) hereof with respect to
proceedings to enforce rights to indemnification, the Corporation shall
indemnify any such indemnitee only if such proceeding was authorized by the
Board of Directors of the Corporation. The right to indemnification conferred by
this Section shall be a contract right and shall include the right to be paid by
the Corporation the expenses incurred in defending any such proceeding in
advance of its final disposition (hereinafter an

                                      -2-

<PAGE>

"advancement of expenses"). If the Delaware General Corporation Law requires, an
advancement of expenses incurred by an indemnitee in his capacity as a director
or officer shall be made only upon delivery to the Corporation of an undertaking
by such indemnitee to repay all amounts so advanced if it is ultimately
determined by final judicial decision that such indemnitee is not entitled to be
indemnified for such expenses under this Section or otherwise (hereinafter an
"undertaking").

         (b) Right of Indemnitee to Bring Suit. If a claim under paragraph (a)
of this Section is not paid in full by the Corporation within ninety days after
receipt of a written claim, the indemnitee may bring suit against the
Corporation to recover the unpaid amount. (In the case of a claim for
advancement of expenses, the applicable period will be twenty days.) If
successful in any such suit, the indemnitee will also be entitled to be paid the
expense of prosecuting such suit. In any suit brought by the indemnitee to
enforce a right to indemnification hereunder (but not in a suit brought by the
indemnitee to enforce a right to an advancement of expenses) it shall be a
defense that the indemnitee has not met the applicable standard of conduct under
the Delaware General Corporation Law. In any suit by the Corporation to recover
an advancement of expenses pursuant to the terms of an undertaking, it shall be
entitled to recover such expenses upon a final adjudication that the indemnitee
has not met the

                                      -3-

<PAGE>

applicable standard of conduct set forth in the Delaware General Corporation
Law. Neither the failure of the Board of Directors of the Corporation to
determine prior to the commencement of such suit that the indemnitee has met the
applicable standard of conduct for indemnification set forth in the Delaware
General Corporation Law, nor an actual determination by the Board of Directors
of the Corporation that the indemnitee has not met such applicable standard of
conduct, shall create a presumption that the indemnitee has not met the
applicable standard of conduct or, in the case of such a suit brought by the
indemnitee, be a defense to such suit. In any suit brought by the indemnitee to
enforce a right hereunder, or by the Corporation to recover an advancement of
expenses pursuant to the terms of an undertaking, the burden of proving that the
indemnitee is not entitled to be indemnified or to such advancement of expenses
under this Section or otherwise shall be on the Corporation.

         (c) Non-Exclusivity of Rights. The rights to indemnification and to the
advancement of expenses conferred in this Section will not be exclusive of any
other right which any person may have or hereafter acquire under any statute,
this Restated Certificate of Incorporation, by-law, agreement, vote of
stockholders or disinterested directors or otherwise.

         (d) Insurance. The Corporation may maintain insurance, at its expense,
to protect itself and any director, officer,

                                      -4-

<PAGE>

employee or agent of the Corporation or other entity against any expense,
liability or loss, whether or not the Corporation would have the power to
indemnify such person under the Delaware General Corporation Law.

         (e) Indemnification of Agents of the Corporation. The Corporation may,
if authorized by the Board of Directors, grant rights to indemnification and to
the advancement of expenses to any agent of the Corporation to the same extent
as for directors, officers and employees of the Corporation.

         2. The amendment was duly adopted in accordance with the provisions of
Section 242 of the General Corporation Law of the State of Delaware.

         IN WITNESS WHEREOF, I have signed this certificate this 15th day of
May, 1987.

                                            /s/ William R. Berkley
                                            ------------------------------
                                                William R. Berkley, Chairman

Attest:

/s/ Brian C. Kelly
- -------------------------
Brian C. Kelly, Secretary

                                      -5-

<PAGE>

                    CERTIFICATE OF DESIGNATIONS, PREFERENCES
                    AND RELATIVE, PARTICIPATING, OPTIONAL AND
                        OTHER SPECIAL RIGHTS OF PREFERRED
                      STOCK AND QUALIFICATIONS, LIMITATIONS
                            AND RESTRICTIONS THEREOF

                                       OF

              7 3/8% SERIES A CUMULATIVE REDEEMABLE PREFERRED STOCK

                                       OF

                            W. R. BERKLEY CORPORATION

                         Pursuant to Section 151 of the
                General Corporation Law of the State Of Delaware

                  W. R. Berkley Corporation, a Delaware corporation (the
"Company"), certifies that pursuant to the authority contained in Article IV of
its Restated Certificate of Incorporation (the "Certificate of Incorporation")
and in accordance with the provisions of Section 151 of the General Corporation
Law of the State of Delaware, the Board of Directors of the Company by unanimous
written consents dated July 7, 1993 and January 14, 1994, adopted the following
resolution which resolution remains in full force and effect on the date hereof:

                  RESOLVED, that there is hereby established the following
series of authorized preferred stock having a par value of $.10 per share, which
shall be designated as "7 3/8% Series A Cumulative Redeemable Preferred Stock"
(the "Series A Preferred Stock") and which shall consist of 1,150,000 shares
having the following voting powers, preferences and relative, participating,
optional and other special rights, and qualifications, limitations and
restrictions thereof:

                  1. Certain Definitions.

                  Unless the context otherwise requires, the terms defined in
this paragraph 1 shall have, for all purposes of this resolution, the meanings
herein specified (with terms defined in the singular having comparable meanings
when used in the plural).

                  Business Day. The term "Business Day" shall mean any day,
other than a Saturday or Sunday, that is neither a legal holiday nor a day on
which banking institutions in New York City are authorized or required by law,
regulation or executive order to close.

<PAGE>

                  Common Stock. The term "Common Stock" shall mean the common
stock, par value $.20 per share, of the Company.

                  Dividend Payment Date. The term "Dividend Payment Date" shall
have the meaning set forth in subparagraph (b) of paragraph 2 below.

                  Dividend Period. The term "Dividend Period" shall mean the
period from, and including, the Initial Issue Date to, but not including, the
first Dividend Payment Date and thereafter, each quarterly period from, and
including, the Dividend Payment Date to, but not including, the next Dividend
Payment Date.

                  Initial Issue Date. The term "Initial Issue Date" shall mean
the date that shares of Series A Preferred Stock are first issued by the
Company.

                  Liquidation Preference. The term "Liquidation Preference"
shall mean $150 per share.

                  Record Date. The term "Record Date" shall mean the date
designated by the Board of Directors of the Company at the time a dividend is
declared; provided, however, that such Record Date shall be the first day of the
calendar month in which the applicable Dividend Payment Date falls or such other
date designated by the Board of Directors for the payment of dividends that is
not more than thirty (30) days nor less than ten (10) days prior to such
Dividend Payment Date.

                  Redemption Date. The term "Redemption Date" shall have the
meaning set forth in subparagraph (b) of paragraph 4 below.

                  Redemption Price. The term "Redemption Price" shall mean a
price per share equal to $150 together with accrued and unpaid dividends, if
any, thereon to the Redemption Date.

                  2. Dividends.

                  (a) The record holders of Series A Preferred Stock shall be
entitled to receive dividends, when and as declared by the Board of Directors of
the Company, out of funds legally available for payment of dividends. Such
dividends shall be payable by the Company in cash at the rate of 7 3/8% percent
per annum of the Liquidation Preference (equivalent to $11.0625 per share of
Series A Preferred Stock).

                  (b) Dividends on shares of Series A Preferred Stock shall
accrue and be cumulative from the Initial Issue Date. Dividends shall be payable
quarterly in arrears when and as declared by the Board of Directors of the
Company on January 15, April 15, July 15 and October 15 of each year (each, a
"Dividend

                                       2

<PAGE>

Payment Date"), commencing on April 15, 1994. If any Dividend Payment Date
occurs on a day that is not a Business Day, any accrued dividends otherwise
payable on such Dividend Payment Date shall be paid on the next succeeding
Business Day. The amount of dividends payable on Series A Preferred Stock for
each full Dividend Period shall be computed by dividing by four (4) the annual
dividend rate set forth in subparagraph 2(a) above. Dividends payable in respect
of any Dividend Period which is less than a full Dividend Period in length will
be computed on the basis of a 360-day year consisting of twelve 30-day months.
Dividends shall be paid to the holders of record of the Series A Preferred Stock
as their names shall appear on the stock transfer records of the Company at the
close of business on the Record Date for such dividend. Dividends in respect of
any past Dividend Periods that are in arrears may be declared and paid at any
time to holders of record on the Record Date therefor. Any dividend payment made
on shares of Series A Preferred Stock shall be first credited against the
earliest accrued but unpaid dividend due which remains payable.

                  (c) If any shares of Series A Preferred Stock are outstanding,
no full dividends shall be declared or paid or set apart for payment on any
series of preferred stock ranking junior to or on a parity with the Series A
Preferred Stock as to dividends for any period unless full cumulative dividends
have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for such payment on the Series A
Preferred Stock for all past Dividend Periods and the then current Dividend
Period. When dividends are not paid in full (or a sum sufficient for such full
payment is not so set apart) upon the shares of the Series A Preferred Stock and
the shares of any series of preferred stock ranking on a parity as to dividends
with the Series A Preferred Stock, all dividends declared upon the shares of the
Series A Preferred Stock and any other such series of preferred stock shall be
declared pro rata so that the amount of dividends declared per share on the
Series A Preferred Stock and such other series of preferred stock shall in all
cases bear to each other the same ratio that accrued dividends per share on the
shares of the Series A Preferred Stock and such other series of preferred stock
bear to each other. No interest, or sum of money in lieu of interest, shall be
payable in respect of any dividend payment or payments on the Series A Preferred
Stock which may be in arrears.

                  (d) Except as provided in subparagraph 2(c), unless full
cumulative dividends on the Series A Preferred Stock have been or
contemporaneously are declared and paid or declared and a sum sufficient for the
payment thereof set apart for payment for all past Dividend Periods and the then
current Dividend Period, no dividends (other than in Common Stock or other
capital stock of the Company ranking junior to the Series A Preferred Stock as

                                       3

<PAGE>

to dividends and upon liquidation, dissolution or winding up) shall be declared
or paid or set aside for payment or other distribution shall be declared or made
upon the Common Stock or the capital stock of the Company ranking junior to or
on a parity with the Series A Preferred Stock as to dividends or upon
liquidation, dissolution or winding up, nor shall the Common Stock or other
capital stock of the Company ranking junior to or on a parity with the Series A
Preferred Stock as to dividends or upon liquidation, dissolution or winding up
be redeemed, purchased or otherwise acquired for any consideration (or any
moneys be paid to or made available for a sinking fund for the redemption of any
shares of any such stock) by the Company or any subsidiary of the Company
(except by conversion into or exchange for other capital stock of the Company
ranking junior to the Series A Preferred Stock as to dividends and upon
liquidation, dissolution or winding up).

                  (e) Notwithstanding anything contained herein to the contrary,
no dividends on shares of Series A Preferred Stock shall be declared by the
Board of Directors of the Company or paid or set apart for payment by the
Company at such time as the terms and provisions of any agreement of the
Company, including any agreement relating to its indebtedness, prohibits such
declaration, payment or setting apart for payment or provides that such
declaration, payment or setting apart for payment would constitute a breach
thereof or a default thereunder, or if such declaration or payment shall be
restricted or prohibited by law.

                  (f) Notwithstanding anything contained herein to the contrary,
dividends on the Series A Preferred Stock, if not paid on the applicable
Dividend Payment Date, will accrue whether or not dividends are declared for
such Dividend Payment Date, whether or not the Company has earnings and whether
or not there are funds legally available for the payment of such dividends.

                  3. Distributions Upon Liquidation, Dissolution or Winding Up.

                  (a) Upon any voluntary or involuntary liquidation, dissolution
or winding up of the affairs of the Company, subject to the prior preferences
and other rights of any capital stock of the Company ranking prior to the Series
A Preferred Stock with respect to the distribution of assets upon liquidation,
dissolution or winding up which shall have been issued in accordance with the
provisions of subparagraph 5(a), but before any distribution or payment shall be
made to the holders of capital stock ranking junior to the Series A Preferred
Stock in the distribution of assets upon any liquidation, dissolution or winding
up of the Company, the holders of Series A Preferred Stock shall be entitled to
receive out of the assets of the Company legally available for distribution to
its stockholders

                                       4

<PAGE>

liquidating distributions in cash or property at its fair market value as
determined by the Board of Directors of the Company in the amount of the
Liquidation Preference per share plus an amount equal to all dividends accrued
and unpaid thereon to the date of such liquidation, dissolution or winding up.
After payment of the full amount of liquidating distributions to which they are
entitled, the holders of Series A Preferred Stock will have no right or claim to
any of the remaining assets of the Company and shall not be entitled to any
other distribution in the event of liquidation, dissolution or winding up of the
affairs of the Company.

                  (b) In the event that, upon any such voluntary or involuntary
liquidation, dissolution or winding up the legally available assets of the
Company are insufficient to pay the amount of the Liquidation Preference per
share plus an amount equal to all dividends accrued and unpaid on the Series A
Preferred Stock and the corresponding amounts payable on all shares of capital
stock ranking on a parity with the Series A Preferred Stock in the distribution
of assets upon liquidation, dissolution or winding up, then the holders of the
Series A Preferred Stock and all other such capital stock shall share ratably in
any such distribution of assets in proportion to the full liquidating
distributions to which they would otherwise be respectively entitled. Neither
the consolidation or merger of the Company into or with another corporation or
corporations nor the sale, lease, transfer or conveyance of all or substantially
all of the assets of the Company to another corporation or any other entity
shall be deemed a liquidation, dissolution or winding up of the affairs of the
Company within the meaning of this paragraph 3.

                  4. Redemption by the Company.

                  (a) The Series A Preferred Stock may be redeemed, in whole or
from time to time in part, at any time after January 24, 1999 at the option of
the Company at the Redemption Price.

                  (b) Each date fixed for redemption pursuant to subparagraph
4(a) above is called a "Redemption Date". If the Redemption Date is after a
Record Date and before the related Dividend Payment Date, the dividend payable
on such Dividend Payment Date shall be paid to the holder in whose name the
Series A Preferred Stock to be redeemed is registered at the close of business
on such Record Date notwithstanding the redemption thereof between such Record
Date and the related Dividend Payment Date or the Company's default in the
payment of the dividend due.

                  (c) In case of redemption of less than all shares of Series A
Preferred Stock at the time outstanding, the shares to be redeemed shall be
selected pro rata from the holders of record

                                       5

<PAGE>

of such shares in proportion to the number of shares held by such holders (with
adjustments to avoid redemption of fractional shares) or by lot in a manner
determined by the Company.

                  (d) Notice of any redemption will be given by publication in a
newspaper of general circulation in the City of New York, such publication to be
made once a week for two successive weeks commencing not less than 30 nor more
than 60 days prior to the Redemption Date. A similar notice will be mailed by
the Company, postage prepaid, not less than 30 nor more than 60 days prior to
the Redemption Date, addressed to the respective holders of record of the Series
A Preferred Stock to be redeemed at their respective addresses as they appear on
the stock transfer records of the Company. No failure to give such notice or any
defect therein or in the mailing thereof shall affect the validity of the
proceedings for the redemption of any shares of Series A Preferred Stock except
as to the holder or holders to whom the Company has failed to give notice or to
whom notice was defective. In addition to any information required by law or by
the applicable rules of any exchange upon which Series A Preferred Stock (or any
interests therein) may be listed, admitted to trading or included for quotation,
such notice shall state: (i) the Redemption Date; (ii) the Redemption Price;
(iii) the number of shares of Series A Preferred Stock to be redeemed and, if
less than all shares held by such holder are to be redeemed, the number of such
shares to be redeemed; (iv) the place or places where certificates for such
shares are to be surrendered for payment of the Redemption Price; and (v) that
dividends on the shares to be redeemed will cease to accrue on the Redemption
Date.

                  (e) If notice has been mailed in accordance with subparagraph
4(d) above and provided that on or before the Redemption Date specified in such
notice all funds necessary for such redemption shall have been set aside by the
Company in accordance with the provisions of subparagraph (f) below, separate
and apart from its other funds in trust for the pro rata benefit of the holders
of the shares so called for redemption, so as to be, and to continue to be
available therefor, then, from and after the Redemption Date, dividends on the
shares of the Series A Preferred Stock so called for redemption shall cease to
accrue, and said shares shall no longer be deemed to be outstanding and shall
not have the status of shares of Series A Preferred Stock, and all rights of the
holders thereof as shareholders of the Company (except the right to receive from
the Company the Redemption Price) shall cease. Upon surrender, in accordance
with said notice, of the certificates for any shares so redeemed (properly
endorsed or signed for transfer, if the Company shall so require and the notice
shall so state), such shares shall be redeemed by the Company at the Redemption
Price. In case fewer than all the shares represented by any such

                                       6

<PAGE>

certificate are redeemed, a new certificate or certificates shall be issued
representing the unredeemed shares without cost to the holder thereof.

         (f) Any funds deposited with a bank or trust company for the purpose of
redeeming Series A Preferred Stock shall be irrevocable except that:

                           (i) the Company shall be entitled to receive from
                           such bank or trust company the interest or other
                           earnings, if any, earned on any money so deposited in
                           trust, and the holders of any shares redeemed shall
                           have no claim to such interest or other earnings; and

                           (ii) any balance of monies so deposited by the
                           Company and unclaimed by the holders of the Series A
                           Preferred Stock entitled thereto at the expiration of
                           two (2) years from the applicable Redemption Date
                           shall be repaid, together with any interest or other
                           earnings earned thereon, to the Company, and after
                           any such repayment, the holders of the shares
                           entitled to the funds so repaid to the Company shall
                           look only to the Company for payment of the
                           Redemption Price without interest or other earnings.

         (g) No Series A Preferred Stock may be redeemed except with funds
legally available for the payment of the Redemption Price.

         (h) Unless full cumulative dividends on all shares of Series A
Preferred Stock shall have been or contemporaneously are declared and paid or
declared and a sum sufficient for the payment thereof set apart for payment for
all past Dividend Periods and the then current Dividend Period, no shares of any
Series A Preferred Stock shall be redeemed unless all outstanding shares of
Series A Preferred Stock are simultaneously redeemed; provided, however, that
the foregoing shall not prevent the purchase or acquisition of shares of Series
A Preferred Stock pursuant to a purchase or exchange offer made on the same
terms to holders of all outstanding shares of Series A Preferred Stock, and,
unless full cumulative dividends on all outstanding shares of Series A Preferred
Stock have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for payment for all past Dividend
Periods and the then current Dividend Period, the Company shall not purchase or
otherwise acquire directly or indirectly any shares of Series A Preferred Stock
(except by conversion into or exchange for capital stock of the Company ranking
junior to the Series A Preferred Stock as to dividends and upon liquidation,
dissolution or winding up).

                                       7

<PAGE>

                  (i) All shares of Series A Preferred Stock redeemed pursuant
to this paragraph 4 shall be retired and shall be restored to the status of
authorized and unissued shares of preferred stock, without designation as to
series and may thereafter be reissued as shares of any series of preferred
stock.

                  5. Voting Rights.

                  (a) The holders of record of shares of Series A Preferred
Stock shall not be entitled to any voting rights except as hereinafter provided
in this paragraph 5 or as otherwise provided by law. The Company shall not,
without the affirmative vote or consent of the holders of at least two-thirds of
the shares of the Series A Preferred Stock outstanding at the time, given in
person or by proxy, at a meeting (such Series A Preferred Stock voting
separately as a class), (i) authorize, create or issue, or increase the
authorized or issued amount of, any class or series of capital stock ranking
prior to the Series A Preferred Stock with respect to the payment of dividends
or distribution of assets upon liquidation, dissolution or winding up, or
reclassify any authorized capital stock into shares of such prior-ranking stock,
or authorize, create or issue any obligation or security convertible into,
exchangeable for or evidencing the right to purchase any such prior-ranking
stock; or (ii) amend, alter or repeal the provisions of the Certificate of
Incorporation or this Certificate of Designations, Preferences and Relative,
Participating, Optional and Other Special Rights of Preferred Stock and
Qualifications, Limitations and Restrictions Thereof for the Series A Preferred
Stock ("Certificate of Designations"), whether by merger, consolidation or
otherwise, so as to materially and adversely affect any right, preference,
privilege or voting power of the Series A Preferred Stock or the holders
thereof; provided, however, that any increase in the amount of the authorized
preferred stock or any outstanding series of preferred stock or any other
capital stock of the Company, or the creation and issuance of any other series
of preferred stock or of any other capital stock of the Company, in each case
ranking on a parity with or junior to the Series A Preferred Stock with respect
to the payment of dividends or the distribution of assets upon liquidation,
dissolution or winding up, shall not be deemed to materially and adversely
affect such rights, preferences, privileges or voting powers.

                  (b) If and whenever dividends payable on Series A Preferred
Stock shall be in arrears for six (6) or more consecutive Dividend Periods, then
the holders of Series A Preferred Stock, voting separately as a class (with such
other series as provided in subparagraph 5(f) below), shall be entitled at the
next annual meeting of the stockholders or at any special meeting to elect two
(2) additional directors. Upon election,

                                       8

<PAGE>

such directors shall become additional directors of the Company and the
authorized number of directors of the Company shall thereupon be automatically
increased by such number of directors.

                  (c) Whenever the voting right referred to in subparagraph 5(b)
shall have vested, such right may be exercised initially either at a special
meeting of the holders of Series A Preferred Stock, called as hereinafter
provided, or at any annual meeting of stockholders held for the purpose of
electing directors, and thereafter at such annual meetings of the holders of
Series A Preferred Stock. Such right of the holders of Series A Preferred Stock
to elect directors may be exercised until all dividends to which the holders of
Series A Preferred Stock shall have been entitled for all previous Dividend
Periods and the current Dividend Period shall have been paid in full or declared
and a sum of money sufficient for the payment thereof set aside for payment, at
which time the right of the holders of Series A Preferred Stock to elect such
number of directors shall cease, the term of such directors previously elected
shall, upon the resignation thereof, thereupon terminate, and the authorized
number of directors of the Company shall thereupon return to the number of
authorized directors otherwise in effect, but subject always to the same
provisions for the renewal and divestment of such special voting rights in the
case of any such future dividend default or defaults.

                  (d) At any time when such voting right shall have vested in
the holders of Series A Preferred Stock and if such right shall not already have
been initially exercised, a proper officer of the Company shall, upon the
written request of any holder of record of Series A Preferred Stock then
outstanding, addressed to the Secretary of the Company, call a special meeting
of holders of Series A Preferred Stock. Such meeting shall be held at the
earliest practicable date upon the notice required for annual meetings of
stockholders at the place for holding annual meetings of stockholders of the
Company or, if none, at a place designated by the Secretary of the Company. If
such meeting shall not be called by the proper officers of the Company within
thirty (30) days after the personal service of such written request upon the
Secretary of the Company, or within thirty (30) days after mailing the same
within the United States, by registered mail, addressed to the Secretary of the
Company at its principal office (such mailing to be evidenced by the registry
receipt issued by the postal authorities), then the holders of record of ten
percent (10%) of the shares of Series A Preferred Stock then outstanding may
designate in writing a holder of Series A Preferred Stock to call such meeting
at the expense of the Company, and such meeting may be called by such person so
designated upon the notice required for annual meetings of stockholders and
shall be held at the place for holding annual meetings of the Company or, if
none, at a place designated by

                                       9

<PAGE>

such holder. Any holder of Series A Preferred Stock that would be entitled to
vote at such meeting shall have access to the stock books of the Company for the
purpose of causing a meeting of stockholders to be called pursuant to the
provisions of this paragraph. Notwithstanding the provisions of this paragraph,
however, no such special meeting shall be called if any such request is received
less than 90 days before the date fixed for the next ensuing annual or special
meeting of stockholders.

                  (e) If the directors so elected by the holders of Series A
Preferred Stock shall cease to serve as a director before his term shall expire,
the holders of Series A Preferred Stock then outstanding may, at a special
meeting of the holders called as provided above, elect a successor to hold
office for the unexpired term of the director whose place shall be vacant.

                  (f) If at any time when the holders of Series A Preferred
Stock are entitled to elect directors pursuant to the foregoing provisions of
this paragraph 5 the holders of any one or more additional series of preferred
stock are entitled to elect directors by reason of any default or event
specified in the Certificate of Incorporation, as in effect at the time, or in
the Certificate of Designations for such series, and if the terms for such other
additional series so permit, then the voting rights of the two or more series
then entitled to vote shall be combined (with each series having a number of
votes proportional to the aggregate liquidation preference of its outstanding
shares). In such case, the holders of Series A Preferred Stock and of all such
other series then entitled so to vote, voting as a class, shall elect such
directors. If the holders of any such other series have elected such directors
prior to the happening of the default or event permitting the holders of Series
A Preferred Stock to elect directors, or prior to a written request for the
holding of a special meeting being received by the Secretary of the Company as
elsewhere required in subparagraph 5(d) above, then a new election shall be held
with all such other series of preferred stock and the Series A Preferred Stock
voting together as a single class for such directors, resulting in the
termination of the term of such previously elected directors upon the election
of such new directors. If the holders of any such other series are entitled to
elect in excess of two directors, the Series A Preferred Stock shall not
participate in the election of more than two such directors, and those directors
whose terms first expire shall be deemed to be the directors elected by the
holders of Series A Preferred Stock; provided that if at the expiration of such
terms the holders of Series A Preferred Stock are entitled to vote in the
election of directors pursuant to the provisions of this paragraph 5, then the
Secretary of the Company shall call a meeting (which meeting may be the annual
meeting or special meeting of stockholders referred to in subparagraph 5(c)
above) of holders of Series A Preferred

                                       10

<PAGE>

Stock for the purpose of electing replacement directors (in accordance with the
provisions of this paragraph 5) to be held at or prior to the time of expiration
of the expiring terms referred to above.

                  (g) In any matter in which the Series A Preferred Stock may
vote (as expressly provided herein or as may be required by law), each share of
Series A Preferred stock shall be entitled to one (1) vote, any portion of which
may be directed separately by the holder thereof (or by any proxy or proxies of
such holder). With respect to each share of Series A Preferred Stock, the holder
thereof may designate up to six (6) proxies, with each such proxy having the
right to vote one-sixth of a share of Series A Preferred Stock).

                  6. Exclusion of Other Rights.

                  Except as may otherwise be required by law, the shares of
Series A Preferred Stock shall not have any voting powers, preferences and
relative, participating, optional or other special rights, other than those
specifically set forth in this Certificate of Designations (as such Certificate
of Designations may be amended from time to time) and in the Certificate of
Incorporation. The shares of Series A Preferred Stock shall have no preemptive
or subscription rights.

                  7. Headings of Subdivisions.

                  The headings of the various subdivisions hereof are for
convenience of reference only and shall not affect the interpretation of any of
the provisions hereof.

                  8. Severability of Provisions.

                  If any voting powers, preferences and relative, participating,
optional and other special rights of the Series A Preferred Stock and
qualifications, limitations and restrictions thereof set forth in this
Certificate of Designations (as such Certificate of Designations may be amended
from time to time) is invalid, unlawful or incapable of being enforced by reason
of any rule of law or public policy, all other voting powers, preferences and
relative, participating, optional and other special rights of Series A Preferred
Stock and qualifications, limitations and restrictions thereof set forth in this
Certificate of Designations (as so amended) which can be given effect without
the invalid, unlawful or unenforceable voting powers, preferences and relative,
participating, optional and other special rights of Series A Preferred Stock and
qualifications, limitations and restrictions thereof shall, nevertheless, remain
in full force and effect, and no voting powers, preferences and relative,
participating, optional or

                                       11

<PAGE>

other special rights of Series A Preferred Stock and qualifications, limitations
and restrictions thereof herein set forth shall be deemed dependent upon any
other such voting powers, preferences and relative, participating, optional or
other special rights of Series A Preferred Stock and qualifications, limitations
and restrictions thereof unless so expressed herein.

                  IN WITNESS WHEREOF, the Corporation has caused this
certificate to be duly executed by its Senior Vice President, General Counsel
and Secretary and attested by its Assistant Secretary, this 21st day of January,
l994.

                                            W. R. BERKLEY CORPORATION

                                            By: /s/ Robert S. Gorin
                                                -------------------------
                                                Robert S. Gorin
                                                Senior Vice President,
                                                General Counsel and
                                                Secretary

ATTEST:

By: /s/ Ira S. Lederman
    --------------------
    Ira S. Lederman
    Assistant Secretary

                                       12

<PAGE>

                    CERTIFICATE OF DESIGNATIONS, PREFERENCES
                    AND RELATIVE, PARTICIPATING, OPTIONAL AND
                        OTHER SPECIAL RIGHTS OF PREFERRED
                      STOCK AND QUALIFICATIONS, LIMITATIONS
                            AND RESTRICTIONS THEREOF

                                       OF

                 SERIES B CUMULATIVE REDEEMABLE PREFERRED STOCK

                                       OF

                            W. R. BERKLEY CORPORATION

                         Pursuant to Section 151 of the
                General Corporation Law of the State of Delaware

                  W. R. Berkley Corporation, a Delaware corporation (the
"Company"), certifies that pursuant to the authority contained in Article IV of
its Restated Certificate of Incorporation (the "Certificate of Incorporation")
and in accordance with the provisions of Section 151 of the General Corporation
Law of the State of Delaware, the Board of Directors of the Company at a meeting
held on July 14, 1995, adopted the following resolution which resolution remains
in full force and effect on the date hereof:

                  RESOLVED, that there is hereby established the following
series of authorized preferred stock having a par value of $.10 per share, which
shall be designated as "Series B Cumulative Redeemable Preferred Stock" (the
"Series B Preferred Stock") and which shall consist of 458,667 shares having the
following voting powers, preferences and relative, participating, optional and
other special rights, and qualifications, limitations and restrictions thereof:

                  1. Certain Definitions.

                  Unless the context otherwise requires, the terms defined in
this paragraph 1 shall have, for all purposes of this resolution, the meanings
herein specified (with terms defined in the singular having comparable meanings
when used in the plural).

                  Affiliate. The term "Affiliate" shall have the meaning
specified in Rule 12b-2 under the Securities Exchange Act of 1934.

                  Business Day. The term "Business Day" shall mean any day,
other than a Saturday or Sunday, that is neither a legal

<PAGE>

holiday nor a day on which banking institutions in New York City are authorized
or required by law, regulation or executive order to close.

                  Common Stock. The term "Common Stock" shall mean the common
stock, par value $.20 per share, of the Company.

                  Dividend Payment Date. The term "Dividend Payment Date" shall
have the meaning set forth in subparagraph (b) of paragraph 2 below.

                  Dividend Period. The term "Dividend Period" shall mean the
period from, and including, the Initial Issue Date to, but not including, the
first Dividend Payment Date and thereafter, each quarterly period from, and
including, the Dividend Payment Date to, but not including, the next Dividend
Payment Date.

                  Initial Issue Date. The term "Initial Issue Date" shall mean
the date that shares of Series B Preferred Stock are first issued by the
Company.

                  Investment Banking Firm. The term "Investment Banking Firm"
shall mean a nationally recognized investment banking firm selected by the
Company.

                  Liquidation Preference. The term "Liquidation Preference"
shall mean $150 per share.

                  Market Rate. The term "Market Rate" shall mean a percentage
rate per annum of the Liquidation Preference selected by the Investment Banking
Firm pursuant to subsection (a) of paragraph 2 below.

                  Record Date. The term "Record Date" shall mean the date
designated by the Board of Directors of the Company at the time a dividend is
declared; provided, however, that such Record Date shall be the first day of the
calendar month in which the applicable Dividend Payment Date falls or such other
date designated by the Board of Directors for the payment of dividends that is
not more than thirty (30) days nor less than ten (10) days prior to such
Dividend Payment Date.

                  Redemption Date. The term "Redemption Date" shall have the
meaning set forth in subparagraph (b) of paragraph 4 below.

                  Redemption Price. The term "Redemption Price" shall mean a
price per share equal to $150 together with accrued and unpaid dividends, if
any, thereon to the Redemption Date.

                  Registration Rights Agreement. The term "Registration Rights
Agreement" shall mean the Registration Rights Agreement, dated as of December
28, 1995, between the Company and General Re Corporation, as the same may be
amended from time to time.

                                       2

<PAGE>

                  2. Dividends.

                  (a) The record holders of Series B Preferred Stock shall be
entitled to receive dividends, when and as declared by the Board of Directors of
the Company, out of funds legally available for payment of dividends. Such
dividends shall be payable by the Company in cash at the following percent per
annum of the Liquidation Preference for the Dividend Periods indicated:

<TABLE>
<CAPTION>
  Percent                                        Dividend Period
- ------------                   ----------------------------------------------------
<S>                            <C>
    0%                         From Initial Issue Date to first Dividend
                               Payment Date

    2%                         From first Dividend Payment Date to second
                               Dividend Payment Date

    4%                         From second Dividend Payment Date to third
                               Dividend Payment Date

    6%                         From third Dividend Payment Date to establishment of
                               the Market Rate as specified in this Section 2(a)
</TABLE>

If Series B Preferred Stock is proposed to be included in a registration
statement to be filed by the Company pursuant to the Registration Rights
Agreement by a notice delivered to the Company in accordance with the terms
thereof, then the dividend rate for the Series B Preferred Stock (to be
effective for Dividend Periods or portions thereof terminating immediately
subsequent to any sale of Series B Preferred Stock pursuant any such
registration statement) shall be the rate (the "Market Rate") determined by the
Investment Banking Firm which shall cause the Series B Preferred Stock to trade
at a price equal to 100% of the Liquidation Preference on the effective date of
any such registration statement. In the event that no shares of Series B
Preferred Stock are sold pursuant to any such registration statement by the
180th day after the date of receipt by the Company of the notice hereinbefore
referred to, the dividend rate for the Series B Preferred Stock shall be the
rate as determined by the Investment Banking Firm that would cause the Series B
Preferred Stock trading at its Liquidation Preference to yield an amount equal
to the yield on the Company's 7 3/8% Series A Cumulative Redeemable Preferred
Stock trading at its liquidation preference on such 180th day.

                  (b) Dividends on shares of Series B Preferred Stock shall
accrue and be cumulative from the Initial Issue Date. Dividends shall be payable
quarterly in arrears when and as declared by the Board of Directors of the
Company on January 15, April 15, July 15, and October 15, of each year (each, a
"Dividend Payment Date"), commencing on January 15, 1996. If any

                                       3

<PAGE>

Dividend Payment Date occurs on a day that is not a Business Day, any accrued
dividends otherwise payable on such Dividend Payment Date shall be paid on the
next succeeding Business Day. Dividends payable in respect of any Dividend
Period which is less than a full Dividend Period in length will be computed on
the basis of a 360-day year consisting of twelve 30-day months. Dividends shall
be paid to the holders of record of the Series B Preferred Stock as their names
shall appear on the stock transfer records of the Company at the close of
business on the Record Date for such dividend. Dividends in respect of any past
Dividend Periods that are in arrears may be declared and paid at any time to
holders of record on the Record Date therefor. Any dividend payment made on
shares of Series B Preferred Stock shall be first credited against the earliest
accrued but unpaid dividend due which remains payable.

                  (c) If any shares of Series B Preferred Stock are outstanding,
no full dividends shall be declared or paid or set apart for payment on any
series of preferred stock ranking junior to or on a parity with the Series B
Preferred Stock as to dividends for any period unless full cumulative dividends
have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for such payment on the Series B
Preferred Stock for all past Dividend Periods and the then current Dividend
Period. When dividends are not paid in full (or a sum sufficient for such full
payment is not so set apart) upon the shares of the Series B Preferred Stock and
the shares of any series of preferred stock ranking on a parity as to dividends
with the Series B Preferred Stock, all dividends declared upon the shares of the
Series B Preferred Stock and any other such series of preferred stock shall be
declared pro rata so that the amount of dividends declared per share on the
Series B Preferred Stock and such other series of preferred stock shall in all
cases bear to each other the same ratio that accrued dividends per share on the
shares of the Series B Preferred Stock and such other series of preferred stock
bear to each other. No interest, or sum of money in lieu of interest, shall be
payable in respect of any dividend payment or payments on the Series B Preferred
Stock which may be in arrears.

                  (d) Except as provided in subparagraph 2(c), unless full
cumulative dividends on the Series B Preferred Stock have been or
contemporaneously are declared and paid or declared and a sum sufficient for the
payment thereof set apart for payment for all past Dividend Periods and the then
current Dividend Period, no dividends (other than in Common Stock or other
capital stock of the Company ranking junior to the Series B Preferred Stock as
to dividends and upon liquidation, dissolution or winding up) shall be declared
or paid or set aside for payment or no other distribution shall be declared or
made upon the Common Stock or the capital stock of the Company ranking junior to
or on a parity with the Series B Preferred Stock as to dividends or upon
liquidation, dissolution or winding up, nor shall the Common Stock or other
capital stock of the Company ranking junior to or

                                       4

<PAGE>

on a parity with the Series B Preferred Stock as to dividends or upon
liquidation, dissolution or winding up be redeemed, purchased or otherwise
acquired for any consideration (or any moneys be paid to or made available for a
sinking fund for the redemption of any shares of any such stock) by the Company
or any subsidiary of the Company (except by conversion into or exchange for
other capital stock of the Company ranking junior to the Series B Preferred
Stock as to dividends and upon liquidation, dissolution or winding up).

                  (e) Notwithstanding anything contained herein to the contrary,
no dividends on shares of Series B Preferred Stock shall be declared by the
Board of Directors of the Company or paid or set apart for payment by the
Company at such time as the terms and provisions of any agreement of the
Company, including any agreement relating to its indebtedness, prohibits such
declaration, payment or setting apart for payment or provides that such
declaration, payment or setting apart for payment would constitute a breach
thereof or a default thereunder, or if such declaration or payment shall be
restricted or prohibited by law.

                  (f) Notwithstanding anything contained herein to the contrary,
dividends on the Series B Preferred Stock, if not paid on the applicable
Dividend Payment Date, will accrue whether or not dividends are declared for
such Dividend Payment Date, whether or not the Company has earnings and whether
or not there are funds legally available for the payment of such dividends.

                  (g) The Series B Preferred Stock shall rank on a parity as to
dividends or upon liquidation, dissolution or winding up with the Company's
7-3/8% Series A Cumulative Redeemable Preferred Stock.

                  3. Distributions Upon Liquidation, Dissolution or Winding Up.

                  (a) Upon any voluntary or involuntary liquidation, dissolution
or winding up of the affairs of the Company, subject to the prior preferences
and other rights of any capital stock of the Company ranking prior to the Series
B Preferred Stock with respect to the distribution of assets upon liquidation,
dissolution or winding up which shall have been issued in accordance with the
provisions of subparagraph 5(a), but before any distribution or payment shall be
made to the holders of capital stock ranking junior to the Series B Preferred
Stock in the distribution of assets upon any liquidation, dissolution or winding
up of the Company, the holders of Series B Preferred Stock shall be entitled to
receive out of the assets of the Company legally available for distribution to
its stockholders liquidating distributions in cash or property at its fair
market value as determined by the Board of Directors of the Company in the
amount of the Liquidation Preference per share plus an amount equal to all
dividends accrued and unpaid thereon to the date of such liquidation,
dissolution or winding up. After payment of

                                       5

<PAGE>

the full amount of liquidating distributions to which they are entitled, the
holders of Series B Preferred Stock will have no right or claim to any of the
remaining assets of the Company and shall not be entitled to any other
distribution in the event of liquidation, dissolution or winding up of the
affairs of the Company.

                  (b) In the event that, upon any such voluntary or involuntary
liquidation, dissolution or winding up, the legally available assets of the
Company are insufficient to pay the amount of the Liquidation Preference per
share plus an amount equal to all dividends accrued and unpaid on the Series B
Preferred Stock and the corresponding amounts payable on all shares of capital
stock ranking on a parity with the Series B Preferred Stock in the distribution
of assets upon liquidation, dissolution or winding up, then the holders of the
Series B Preferred Stock and all other such capital stock shall share ratably in
any such distribution of assets in proportion to the full liquidating
distributions to which they would otherwise be respectively entitled. Neither
the consolidation or merger of the Company into or with another corporation or
corporations nor the sale, lease, transfer or conveyance of all or substantially
all of the assets of the Company to another corporation or any other entity
shall be deemed a liquidation, dissolution or winding up of the affairs of the
Company within the meaning of this paragraph 3.

                  4. Redemption by the Company.

                  (a) The Series B Preferred Stock may be redeemed, in whole or
from time to time in part, at the option of the Company at the Redemption Price
on any Dividend Payment Date; provided, however, that subsequent to any sale of
Preferred Stock pursuant to a Registration Statement filed by the Company
pursuant to the Registration Rights Agreement, the Series B Preferred Stock may
be redeemed, in whole or from time to time in part, at any time subsequent to
the fifth anniversary of any such sale, at the option of the Company at the
Redemption Price on any Dividend Payment Date.

                  (b) Each date fixed for redemption pursuant to subparagraph
4(a) above is called a "Redemption Date".

                  (c) In case of redemption of less than all shares of Series B
Preferred Stock at the time outstanding, the shares to be redeemed shall be
selected pro rata from the holders of record of such shares in proportion to the
number of shares held by such holders (with adjustments to avoid redemption of
fractional shares) or by lot in a manner determined by the Company.

                  (d) Notice of any redemption will be mailed by the Company,
postage prepaid, not less than 30 nor more than 60 days prior to the Redemption
Date, addressed to the respective holders of record of the Series B Preferred
Stock to be redeemed at their

                                       6

<PAGE>

respective addresses as they appear on the stock transfer records of the
Company. No failure to give such notice or any defect therein or in the mailing
thereof shall affect the validity of the proceedings for the redemption of any
shares of Series B Preferred Stock except as to the holder or holders to whom
the Company has failed to give notice or to whom notice was defective. In
addition to any information required by law or by the applicable rules of any
exchange upon which Series B Preferred Stock (or any interests therein) may be
listed, admitted to trading or included for quotation, such notice shall state:
(i) the Redemption Date; (ii) the Redemption Price; (iii) the number of shares
of Series B Preferred Stock to be redeemed and, if less than all shares held by
such holder are to be redeemed, the number of such shares to be redeemed; (iv)
the place or places where certificates for such shares are to be surrendered for
payment of the Redemption Price; and (v) that dividends on the shares to be
redeemed will cease to accrue on the Redemption Date.

                  (e) If notice has been mailed in accordance with subparagraph
4(d) above and provided that on or before the Redemption Date specified in such
notice all funds necessary for such redemption shall have been set aside by the
Company in accordance with the provisions of subparagraph (f) below, separate
and apart from its other funds in trust for the pro rata benefit of the holders
of the shares so called for redemption, so as to be, and to continue to be
available therefor, then, from and after the Redemption Date, dividends on the
shares of the Series B Preferred Stock so called for redemption shall cease to
accrue, and said shares shall no longer be deemed to be outstanding and shall
not have the status of shares of Series B Preferred Stock, and all rights of the
holders thereof as shareholders of the Company (except the right to receive from
the Company the Redemption Price) shall cease. Upon surrender, in accordance
with said notice, of the certificates for any shares so redeemed (properly
endorsed or assigned for transfer, if the Company shall so require and the
notice shall so state), such shares shall be redeemed by the Company at the
Redemption Price. In case fewer than all the shares represented by any such
certificate are redeemed, a new certificate or certificates shall be issued
representing the unredeemed shares without cost to the holder thereof.

                  (f) Any funds deposited with a bank or trust company for the
purpose of redeeming Series B Preferred Stock shall be irrevocable except that:

                           (i) the Company shall be entitled to receive from
                  such bank or trust company the interest or other earnings, if
                  any, earned on any money so deposited in trust, and the
                  holders of any shares redeemed shall have no claim to such
                  interest or other earnings; and

                                       7

<PAGE>

                           (ii) any balance of monies so deposited by the
                  Company and unclaimed by the holders of the Series B Preferred
                  Stock entitled thereto at the expiration of two (2) years from
                  the applicable Redemption Date shall be repaid, together with
                  any interest or other earnings earned thereon, to the Company,
                  and after any such repayment, the holders of the shares
                  entitled to the funds so repaid to the Company shall look only
                  to the Company for payment of the Redemption Price without
                  interest or other earnings.

                  (g) No Series B Preferred Stock may be redeemed except with
funds legally available for the payment of the Redemption Price.

                  (h) Unless full cumulative dividends on all shares of Series B
Preferred Stock shall have been or contemporaneously are declared and paid or
declared and a sum sufficient for the payment thereof set apart for payment for
all past Dividend Periods and the then current Dividend Period, no shares of any
Series B Preferred Stock shall be redeemed unless all outstanding shares of
Series B Preferred Stock are simultaneously redeemed; provided, however, that
the foregoing shall not prevent the purchase or acquisition of shares of Series
B Preferred Stock pursuant to a purchase or exchange offer made on the same
terms to holders of all outstanding shares of Series B Preferred Stock, and,
unless full cumulative dividends on all outstanding shares of Series B Preferred
Stock have been or contemporaneously are declared and paid or declared and a sum
sufficient for the payment thereof set apart for payment for all past Dividend
Periods and the then current Dividend Period, the Company shall not purchase or
otherwise acquire directly or indirectly any shares of Series B Preferred Stock
(except by conversion into or exchange for capital stock of the Company ranking
junior to the Series B Preferred Stock as to dividends and upon liquidation,
dissolution or winding up).

                  (i) All shares of Series B Preferred Stock redeemed pursuant
to this paragraph 4 shall be retired and shall be restored to the status of
authorized and unissued shares of preferred stock, without designation as to
series and may thereafter be reissued as shares of any series of preferred stock
other than Series B Preferred Stock.

                  5. Voting Rights.

                  (a) The holders of record of shares of Series B Preferred
Stock shall not be entitled to any voting rights except as hereinafter provided
in this paragraph 5 or as otherwise provided by law. The Company shall not,
without the affirmative vote or consent of the holders of at least two-thirds of
the shares of the Series B Preferred Stock outstanding at the time, given in
person or by proxy, at a meeting (such Series B Preferred Stock voting
separately as a class), (i) increase the

                                       8

<PAGE>

authorized or issued amount of Series B Preferred Stock; (ii) authorize, create
or issue, or increase the authorized or issued amount of, any class or series of
capital stock ranking prior to the Series B Preferred Stock with respect to the
payment of dividends or distribution of assets upon liquidation, dissolution or
winding up, or reclassify any authorized capital stock into shares of such
prior-ranking stock, or authorize, create or issue any obligation or security
convertible into, exchangeable for or evidencing the right to purchase any such
prior-ranking stock; or (iii) amend, alter or repeal the provisions of the
Certificate of Incorporation or this Certificate of Designations, Preferences
and Relative, Participating, Optional and Other Special Rights of Preferred
Stock and Qualifications, Limitations and Restrictions Thereof for the Series B
Preferred Stock ("Certificate of Designations"), whether by merger,
consolidation or otherwise, so as to materially and adversely affect any right,
preference, privilege or voting power of the Series B Preferred Stock or the
holders thereof; provided, however, that any increase in the amount of the
authorized preferred stock (other than the Series B Preferred Stock) or any
outstanding series of preferred stock or any other capital stock of the Company,
or the creation and issuance of any other series of preferred stock or of any
other capital stock of the Company, in each case ranking on a parity with or
junior to the Series B Preferred Stock with respect to the payment of dividends
or the distribution of assets upon liquidation, dissolution or winding up, shall
not be deemed to materially and adversely affect such rights, preferences,
privileges or voting powers.

                  (b) If and whenever dividends payable on Series B Preferred
Stock shall be in arrears for six (6) or more consecutive Dividend Periods, then
the holders of Series B Preferred Stock, voting separately as a class (with such
other series as provided in subparagraph 5 (f) below), shall be entitled at the
next annual meeting of the stockholders or at any special meeting to elect two
(2) additional directors. Upon election, such directors shall become additional
directors of the Company and the authorized number of directors of the Company
shall thereupon be automatically increased by such number of directors.

                  (c) Whenever the voting right referred to in subparagraph 5(b)
shall have vested, such right may be exercised initially either at a special
meeting of the holders of Series B Preferred Stock, called as hereinafter
provided, or at any annual meeting of stockholders held for the purpose of
electing directors, and thereafter at such annual meetings of the holders of
Series B Preferred Stock. Such right of the holders of Series B Preferred Stock
to elect directors may be exercised until all dividends to which the holders of
Series B Preferred Stock shall have been entitled for all previous Dividend
Periods and the current Dividend Period shall have been paid in full or declared
and a sum of money sufficient for the payment thereof set aside for payment, at
which time the right of the holders of Series B Preferred Stock to elect such
number of directors shall cease,

                                       9

<PAGE>

the term of such directors previously elected shall, upon the resignation
thereof, thereupon terminate, and the authorized number of directors of the
Company shall thereupon return to the number of authorized directors otherwise
in effect, but subject always to the same provisions for the renewal and
divestment of such special voting rights in the case of any such future dividend
default or defaults.

                  (d) At any time when such voting right shall have vested in
the holders of Series B Preferred Stock and if such right shall not already have
been initially exercised, a proper officer of the Company shall, upon the
written request of any holder of record of Series B Preferred Stock then
outstanding, addressed to the Secretary of the Company, call a special meeting
of holders of Series B Preferred Stock. Such meeting shall be held at the
earliest practicable date upon the notice required for annual meetings of
stockholders at the place for holding annual meetings of stockholders of the
Company or, if none, at a place designated by the Secretary of the Company. If
such meeting shall not be called by the proper officers of the Company within
thirty (30) days after the personal service of such written request upon the
Secretary of the Company, or within thirty (30) days after mailing the same
within the United States, by registered mail, addressed to the Secretary of the
Company at its principal office (such mailing to be evidenced by the registry
receipt issued by the postal authorities), then the holders of record of ten
percent (10%) of the shares of Series B Preferred Stock then outstanding may
designate in writing a holder of Series B Preferred Stock to call such meeting
at the expense of the Company, and such meeting may be called by such person so
designated upon the notice required for annual meetings of stockholders and
shall be held at the place for holding annual meetings of the Company or, if
none, at a place designated by such holder. Any holder of Series B Preferred
Stock that would be entitled to vote at such meeting shall have access to the
stock books of the Company for the purpose of causing a meeting of stockholders
to be called pursuant to the provisions of this paragraph. Notwithstanding the
provisions of this paragraph, however, no such special meeting shall be called
if any such request is received less than 90 days before the date fixed for the
next ensuing annual or special meeting of stockholders.

                  (e) If a director so elected by the holders of Series B
Preferred Stock shall cease to serve as a director before his term shall expire,
the holders of Series B Preferred Stock then outstanding may, at a special
meeting of the holders called as provided above, elect a successor to hold
office for the unexpired term of the director whose place shall be vacant.

                  (f) If at any time when the holders of Series B Preferred
Stock are entitled to elect directors pursuant to the foregoing provisions of
this paragraph 5 the holders of any one or more additional series of preferred
stock are entitled to elect directors by reason of any default or event
specified in

                                       10

<PAGE>

the Certificate of Incorporation, as in effect at the time, or in the
Certificate of Designations for such series, and if the terms for such other
additional series so permit, then the voting rights of the two or more series
then entitled to vote shall be combined (with each series having a number of
votes proportional to the aggregate liquidation preference of its outstanding
shares). In such case, the holders of Series B Preferred Stock and of all such
other series then entitled so to vote, voting as a class, shall elect such
directors. If the holders of any such other series have elected such directors
prior to the happening of the default or event permitting the holders of Series
B Preferred Stock to elect directors, or prior to a written request for the
holding of a special meeting being received by the Secretary of the Company as
elsewhere required in subparagraph 5(d) above, then a new election shall be held
with all such other series of preferred stock and the Series B Preferred Stock
voting together as a single class for such directors, resulting in the
termination of the term of such previously elected directors upon the election
of such new directors. If the holders of any such other series are entitled to
elect in excess of two directors, the Series B Preferred Stock shall not
participate in the election of more than two such directors, and those directors
whose terms first expire shall be deemed to be the directors elected by the
holders of Series B Preferred Stock; provided that if at the expiration of such
terms the holders of Series B Preferred Stock are entitled to vote in the
election of directors pursuant to the provisions of this paragraph 5, then the
Secretary of the Company shall call a meeting (which meeting may be the annual
meeting or special meeting of stockholders referred to in subparagraph 5(c)
above) of holders of Series B Preferred Stock for the purpose of electing
replacement directors (in accordance with the provisions of this paragraph 5) to
be held at or prior to the time of expiration of the expiring terms referred to
above.

                  (g) In any matter in which the Series B Preferred Stock may
vote (as expressly provided herein or as may be required by law), each share of
Series B Preferred Stock shall be entitled to one (1) vote, any portion of which
may be directed separately by the holder thereof (or by any proxy or proxies of
such holder).

                  6. Exclusion of Other Rights.

                  Except as may otherwise be required by law, the shares of
Series B Preferred Stock shall not have any voting powers, preferences and
relative, participating, optional or other special rights, other than those
specifically set forth in this Certificate of Designations (as such Certificate
of Designations may be amended from time to time) and in the Certificate of
Incorporation. The shares of Series B Preferred Stock shall have no preemptive
or subscription rights.

                                       11

<PAGE>

                  7. Headings of Subdivisions.

                  The headings of the various subdivisions hereof are for
convenience of reference only and shall not affect the interpretation of any of
the provisions hereof.

                  8. Severability of Provisions.

                  If any voting powers, preferences and relative, participating,
optional and other special rights of the Series B Preferred Stock and
qualifications, limitations and restrictions thereof set forth in this
Certificate of Designations (as such Certificate of Designations may be amended
from time to time) is invalid, unlawful or incapable of being enforced by reason
of any rule of law or public policy, all other voting powers, preferences and
relative, participating, optional and other special rights of Series B Preferred
Stock and qualifications, limitations and restrictions thereof set forth in this
Certificate of Designations (as so amended) which can be given effect without
the invalid, unlawful or unenforceable voting powers, preferences and relative,
participating, optional and other special rights of Series B Preferred Stock and
qualifications, limitations and restrictions thereof shall, nevertheless, remain
in full force and effect, and no voting powers, preferences and relative,
participating, optional or other special rights of Series B Preferred Stock and
qualifications, limitations and restrictions thereof herein set forth shall be
deemed dependent upon any other such voting powers, preferences and relative,
participating, optional or other special rights of Series B Preferred Stock and
qualifications, limitations and restrictions thereof unless so expressed herein.

                  9. Restrictions on Transfer. Until such time as shares of
Series B Preferred Stock are sold pursuant to a registration statement filed by
the Company pursuant to the Registration Rights Agreement, shares of Series B
Preferred Stock may only be transferred to an Affiliate of General Re
Corporation. Any transfer in violation of this Section 9 shall be null and void.

                                       12

<PAGE>

                  IN WITNESS WHEREOF, the Corporation has caused this
certificate to be duly executed by its Chairman of the Board, Chief Executive
Officer and President and attested by its Secretary, this 21st day of December,
1995.

                                            W. R. BERKLEY CORPORATION

                                            By: /s/ William R. Berkley
                                                ----------------------------
                                                William R. Berkley
                                                Chairman of the Board,
                                                Chief Executive Officer and
                                                President

ATTEST:

By: /s/ Robert S. Gorin
    ---------------------
    Robert S. Gorin
    Secretary

                                       13

<PAGE>

                            CERTIFICATE OF AMENDMENT

                                       OF

                      RESTATED CERTIFICATE OF INCORPORATION

                                       OF

                            W. R. BERKLEY CORPORATION

                  The undersigned, being the Chairman of W. R. BERKLEY
CORPORATION, a corporation existing under the laws of the State of Delaware,
hereby certifies that:

                  1. The first paragraph of Article FOURTH of the Restated
Certificate of Incorporation of said corporation be and it hereby is amended to
read as follows:

                  FOURTH: The aggregate number of shares of capital stock of all
classes which the Corporation shall have authority to issue is eighty-five
million (85,000,000) shares, of which eighty million (80,000,000) shares are to
be Common Stock of the par value of twenty cents ($.20) each, and five million
(5,000,000) shares are to be Preferred Stock of the par value of ten cents
($.l0) each.

                  2. The amendment was duly adopted in accordance with the
provisions of Section 242 of the General Corporation Law of the State of
Delaware.

                  IN WITNESS WHEREOF, I have signed this certificate this 12th
day of May, 1998.

                                                 /s/ William R. Berkley
                                                 ----------------------------
                                                 William R. Berkley, Chairman
Attest:

/s/ Ira S. Lederman
- ------------------------------------
Ira S. Lederman, Assistant Secretary

<PAGE>

                   CERTIFICATE OF DESIGNATION, PREFERENCES AND
             RIGHTS OF SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

                                       of

                            W. R. BERKLEY CORPORATION

             Pursuant to Section 151 of the General Corporation Law
                            of the State of Delaware

                  We, William R. Berkley, Chairman of the Board, and Cornelius
T. Finnegan III, Secretary, of W. R. Berkley Corporation, a corporation
organized and existing under the General Corporation Law of the State of
Delaware, in accordance with the provisions of Section 103 thereof, DO HEREBY
CERTIFY:

                  That pursuant to the authority conferred upon the Board of
Directors by the Restated Certificate of Incorporation, as amended, of the said
Corporation, the said Board of Directors on May 11, 1999, adopted the following
resolution creating a series of 40,000 shares of Preferred Stock designated as
Series A Junior Participating Preferred Stock:

                  RESOLVED, that pursuant to the authority vested in the Board
of Directors of this Corporation in accordance with the provisions of its
Restated Certificate of Incorporation, as amended, a series of Preferred Stock
of the Corporation be and it hereby is created, and that the designation and
amount thereof and the voting powers, preferences and relative, participating,
optional and other special rights of the shares of such series, and the
qualifications, limitations and restrictions thereof are as follows:

                  Section 1. Designation and Amount. The shares of such series
shall be designated as "Series A Junior Participating Preferred Stock" and the
number of shares constituting such series shall be 40,000.

                  Section 2. Dividends and Distributions.

                  (A)      Subject to the prior and superior rights of the
holders of any shares of any series of Preferred Stock ranking prior and
superior to the shares of Series A Junior Participating Preferred Stock with
respect to dividends, the holders of shares of Series A Junior Participating
Preferred Stock shall be entitled to receive, when, as and if declared by the
Board of Directors out of funds legally available for the purpose, quarterly
dividends payable in cash on the first day of January, April, July and October
in each year (each such date being referred to herein as a "Quarterly Dividend
Payment Date"), commencing on the first Quarterly Dividend Payment Date after
the first issuance of a share or fraction of a share of Series A

<PAGE>

Junior Participating Preferred Stock, in an amount per share (rounded to the
nearest cent) equal to the greater of (a) $10 or (b) subject to the provision
for adjustment hereinafter set forth, 1000 times the aggregate per share amount
of all cash dividends, and 1000 times the aggregate per share amount (payable in
kind) of all non-cash dividends or other distributions other than a dividend
payable in shares of Common Stock or a subdivision of the outstanding shares of
Common Stock (by reclassification or otherwise), declared on the Common Stock,
par value $.20 per share, of the Corporation (the "Common Stock") since the
immediately preceding Quarterly Dividend Payment Date, or, with respect to the
first Quarterly Dividend Payment Date, since the first issuance of any share or
fraction of a share of Series A Junior Participating Preferred Stock. In the
event the Corporation shall at any time after May 11, 1999 (the "Rights
Declaration Date") (i) declare any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the
outstanding Common Stock into a smaller number of shares, then in each such case
the amount to which holders of shares of Series A Junior Participating Preferred
Stock were entitled immediately prior to such event under clause (b) of the
preceding sentence shall be adjusted by multiplying such amount by a fraction
the numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

                  (B)      The Corporation shall declare a dividend or
distribution on the Series A Junior Participating Preferred Stock as provided in
paragraph (A) above immediately after it declares a dividend or distribution on
the Common Stock (other than a dividend payable in shares of Common Stock);
provided, however, that, in the event no dividend or distribution shall have
been declared on the Common Stock during the period between any Quarterly
Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a
dividend of $10 per share on the Series A Junior Participating Preferred Stock
shall nevertheless be payable on such subsequent Quarterly Dividend Payment
Date.

                  (C)      Dividends shall begin to accrue and be cumulative on
outstanding shares of Series A Junior Participating Preferred Stock from the
Quarterly Dividend Payment Date next preceding the date of issue of such shares
of Series A Junior Participating Preferred Stock, unless the date of issue of
such shares is prior to the record date for the first Quarterly Dividend Payment
Date, in which case dividends on such shares shall begin to accrue from the date
of issue of such shares, or unless the date of issue is a Quarterly Dividend
Payment Date or is a date after the record date for the determination of holders
of shares of Series A Junior Participating Preferred Stock entitled to receive a
quarterly dividend and before such Quarterly Dividend Payment Date, in either of
which events such dividends shall begin to accrue and be cumulative from such
Quarterly Dividend Payment

                                      -2-

<PAGE>

Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on
the shares of Series A Junior Participating Preferred Stock in an amount less
than the total amount of such dividends at the time accrued and payable on such
shares shall be allocated pro rata on a share-by-share basis among all such
shares at the time outstanding. The Board of Directors may fix a record date for
the determination of holders of shares of Series A Junior Participating
Preferred Stock entitled to receive payment of a dividend or distribution
declared thereon, which record date shall be no more than thirty (30) days prior
to the date fixed for the payment thereof.

                  Section 3. Voting Rights. The holders of shares of Series A
Junior Participating Preferred Stock shall have the following voting rights:

                  (A)      Subject to the provision for adjustment hereinafter
set forth, each share of Series A Junior Participating Preferred Stock shall
entitle the holder thereof to 1000 votes on all matters submitted to a vote of
the stockholders of the Corporation. In the event the Corporation shall at any
time after the Rights Declaration Date (i) declare any dividend on Common Stock
payable in shares of Common Stock, (ii) subdivide the outstanding Common Stock,
or (iii) combine the outstanding Common Stock into a smaller number of shares,
then in each such case the number of votes per share to which holders of shares
of Series A Junior Participating Preferred Stock were entitled immediately prior
to such event shall be adjusted by multiplying such number by a fraction the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.

                  (B)      Except as otherwise provided herein or by law, the
holders of shares of Series A Junior Participating Preferred Stock and the
holders of shares of Common Stock shall vote together as one class on all
matters submitted to a vote of stockholders of the Corporation.

                  (C)      (i) If at any time dividends on any Series A Junior
Participating Preferred Stock shall be in arrears in an amount equal to six (6)
quarterly dividends thereon, the occurrence of such contingency shall mark the
beginning of a period (herein called a "default period") which shall extend
until such time when all accrued and unpaid dividends for all previous quarterly
dividend periods and for the current quarterly dividend period on all shares of
Series A Junior Participating Preferred Stock then outstanding shall have been
declared and paid or set apart for payment. During each default period, all
holders of Preferred Stock (including holders of the Series A Junior
Participating Preferred Stock) with dividends in arrears in an amount equal to
six (6) quarterly dividends thereon, voting as a class, irrespective of series,
shall have the right to elect two (2) Directors.

                                      -3-

<PAGE>

                           (ii) During any default period, such voting right of
the holders of Series A Junior Participating Preferred Stock may be exercised
initially at a special meeting called pursuant to subparagraph (iii) of this
Section 3(C) or at any annual meeting of stockholders, and thereafter at annual
meetings of stockholders, provided that neither such voting right nor the right
of the holders of any other series of Preferred Stock, if any, to increase, in
certain cases, the authorized number of Directors shall be exercised unless the
holders of ten percent (10%) in number of shares of Preferred Stock outstanding
shall be present in person or by proxy. The absence of a quorum of the holders
of Common Stock shall not affect the exercise by the holders of Preferred Stock
of such voting right. At any meeting at which the holders of Preferred Stock
shall exercise such voting right initially during an existing default period,
they shall have the right, voting as a class, to elect Directors to fill such
vacancies, if any, in the Board of Directors as may then exist up to two (2)
Directors or, if such right is exercised at an annual meeting, to elect two (2)
Directors. If the number which may be so elected at any special meeting does not
amount to the required number, the holders of the Preferred Stock shall have the
right to make such increase in the number of Directors as shall be necessary to
permit the election by them of the required number. After the holders of the
Preferred Stock shall have exercised their right to elect Directors in any
default period and during the continuance of such period, the number of
Directors shall not be increased or decreased except by vote of the holders of
Preferred Stock as herein provided or pursuant to the rights of any equity
securities ranking senior to or pari passu with the Series A Junior
Participating Preferred Stock.

                           (iii) Unless the holders of Preferred Stock shall,
during an existing default period, have previously exercised their right to
elect Directors, the Board of Directors may order, or any stockholder or
stockholders owning in the aggregate not less than ten percent (10%) of the
total number of shares of Preferred Stock outstanding, irrespective of series,
may request, the calling of a special meeting of the holders of Preferred Stock,
which meeting shall thereupon be called by the President, a Vice-President or
the Secretary of the Corporation. Notice of such meeting and of any annual
meeting at which holders of Preferred Stock are entitled to vote pursuant to
this paragraph (C) (iii) shall be given to each holder of record of Preferred
Stock by mailing a copy of such notice to him at his last address as the same
appears on the books of the Corporation. Such meeting shall be called for a time
not earlier than twenty (20) days and not later than sixty (60) days after such
order or request or in default of the calling of such meeting within sixty (60)
days after such order or request, such meeting may be called on similar notice
by any stockholder or stockholders owning in the aggregate not less than ten
percent (10%) of the total number of shares of Preferred Stock outstanding.
Notwithstanding the provisions of this paragraph (C)(iii), no such special
meeting shall be called during the period within sixty (60) days

                                      -4-

<PAGE>

immediately preceding the date fixed for the next annual meeting of the
stockholders.

                  (iv) In any default period, the holders of Common Stock, and
other classes of stock of the Corporation if applicable, shall continue to be
entitled to elect the whole number of Directors until the holders of Preferred
Stock shall have exercised their right to elect two (2) Directors voting as a
class, after the exercise of which right (x) the Directors so elected by the
holders of Preferred Stock shall continue in office until their successors shall
have been elected by such holders or until the expiration of the default period,
and (y) any vacancy in the Board of Directors may (except as provided in
paragraph (C) (ii) of this Section 3) be filled by vote of a majority of the
remaining Directors theretofore elected by the holders of the class of stock
which elected the Director whose office shall have become vacant. References in
this paragraph (C) to Directors elected by the holders of a particular class of
stock shall include Directors elected by such Directors to fill vacancies as
provided in clause (y) of the foregoing sentence.

                  (v) Immediately upon the expiration of a default period, (x)
the right of the holders of Preferred Stock as a class to elect Directors shall
cease, (y) the term of any Directors elected by the holders of Preferred Stock
as a class shall terminate, and (z) the number of Directors shall be such number
as may be provided for in the certificate of incorporation or by-laws
irrespective of any increase made pursuant to the provisions of paragraph (C)
(ii) of this Section 3 (such number being subject, however, to change thereafter
in any manner provided by law or in the certificate of incorporation or
by-laws). Any vacancies in the Board of Directors effected by the provisions of
clauses (y) and (z) in the preceding sentence may be filled by a majority of the
remaining Directors.

                  (D)      Except as set forth herein, holders of Series A
Junior Participating Preferred Stock shall have no special voting rights and
their consent shall not be required (except to the extent they are entitled to
vote with holders of Common Stock as set forth herein) for taking any corporate
action.

Section 4. Certain Restrictions.

                  (A)      Whenever quarterly dividends or other dividends or
distributions payable on the Series A Junior Participating Preferred Stock as
provided in Section 2 are in arrears, thereafter and until all accrued and
unpaid dividends and distributions, whether or not declared, on shares of Series
A Junior Participating Preferred Stock outstanding shall have been paid in full,
the Corporation shall not:

                  (i) declare or pay dividends on, make any other distributions
                  on, or redeem or purchase or otherwise acquire for
                  consideration any shares of stock

                                      -5-

<PAGE>

                  ranking junior (either as to dividends or upon liquidation,
                  dissolution or winding up) to the Series A Junior
                  Participating Preferred Stock;

                  (ii) declare or pay dividends on or make any other
                  distributions on any shares of stock ranking on a parity
                  (either as to dividends or upon liquidation, dissolution or
                  winding up) with the Series A Junior Participating Preferred
                  Stock, except dividends paid ratably on the Series A Junior
                  Participating Preferred Stock and all such parity stock on
                  which dividends are payable or in arrears in proportion to the
                  total amounts to which the holders of all such shares are then
                  entitled;

                  (iii) redeem or purchase or otherwise acquire for
                  consideration shares of any stock ranking on a parity (either
                  as to dividends or upon liquidation, dissolution or winding
                  up) with the Series A Junior Participating Preferred Stock,
                  provided that the Corporation may at any time redeem, purchase
                  or otherwise acquire shares of any such parity stock in
                  exchange for shares of any stock of the Corporation ranking
                  junior (either as to dividends or upon dissolution,
                  liquidation or winding up) to the Series A Junior
                  Participating Preferred Stock; or

                  (iv) purchase or otherwise acquire for consideration any
                  shares of Series A Junior Participating Preferred Stock, or
                  any shares of stock ranking on a parity with the Series A
                  Junior Participating Preferred Stock, except in accordance
                  with a purchase offer made in writing or by publication (as
                  determined by the Board of Directors) to all holders of such
                  shares upon such terms as the Board of Directors, after
                  consideration of the respective annual dividend rates and
                  other relative rights and preferences of the respective series
                  and classes, shall determine in good faith will result in fair
                  and equitable treatment among the respective series or
                  classes.

         (B)      The Corporation shall not permit any subsidiary of the
Corporation to purchase or otherwise acquire for consideration any shares of
stock of the Corporation unless the Corporation could, under paragraph (A) of
this Section 4, purchase or otherwise acquire such shares at such time and in
such manner.

         Section 5. Reacquired Shares. Any shares of Series A Junior
Participating Preferred Stock purchased or otherwise acquired by the Corporation
in any manner whatsoever shall be retired and cancelled promptly after the
acquisition thereof. All such shares shall upon their cancellation become
authorized

                                      -6-

<PAGE>

but unissued shares of Preferred Stock and may be reissued as part of a new
series of Preferred Stock to be created by resolution or resolutions of the
Board of Directors, subject to the conditions and restrictions on issuance set
forth herein.

                  Section 6. Liquidation, Dissolution or Winding Up.

(A)      Upon any liquidation (voluntary or otherwise), dissolution or winding
up of the Corporation, no distribution shall be made to the holders of shares of
stock ranking junior (either as to dividends or upon liquidation, dissolution or
winding up) to the Series A Junior Participating Preferred Stock unless, prior
thereto, the holders of shares of Series A Junior Participating Preferred Stock
shall have received $10 per share, plus an amount equal to accrued and unpaid
dividends and distributions thereon, whether or not declared, to the date of
such payment (the "Series A Liquidation Preference"). Following the payment of
the full amount of the Series A Liquidation Preference, no additional
distributions shall be made to the holders of shares of Series A Junior
Participating Preferred Stock unless, prior thereto, the holders of shares of
Common Stock shall have received an amount per share (the "Common Adjustment")
equal to the quotient obtained by dividing (i) the Series A Liquidation
Preference by (ii) 1000 (as appropriately adjusted as set forth in subparagraph
C below to reflect such events as stock splits, stock dividends and
recapitalizations with respect to the Common Stock) (such number in clause (ii),
the "Adjustment Number"). Following the payment of the full amount of the Series
A Liquidation Preference and the Common Adjustment in respect of all outstanding
shares of Series A Junior Participating Preferred Stock and Common Stock,
respectively, holders of Series A Junior Participating Preferred Stock and
holders of shares of Common Stock shall receive their ratable and proportionate
share of the remaining assets to be distributed in the ratio of 1000 (as
appropriately adjusted as set forth in subparagraph C below to reflect such
events as stock splits, stock dividends and recapitalizations with respect to
the Common Stock) to 1 with respect to such Preferred Stock and Common Stock, on
a per share basis, respectively.

                  (B)      In the event, however, that there are not sufficient
assets available to permit payment in full of the Series A Liquidation
Preference and the liquidation preferences of all other series of preferred
stock, if any, which rank on a parity with the Series A Junior Participating
Preferred Stock, then such remaining assets shall be distributed ratably to the
holders of such parity shares in proportion to their respective liquidation
preferences. In the event, however, that there are not sufficient assets
available to permit payment in full of the Common Adjustment, then such
remaining assets shall be distributed ratably to the holders of Common Stock.

                  (C)      In the event the Corporation shall at any time after
the Rights Declaration Date (i) declare any dividend on Common Stock payable in
shares of Common Stock, (ii) subdivide the outstanding Common Stock, or (iii)
combine the outstanding

                                      -7-

<PAGE>

Common Stock into a smaller number of shares, then in each such case the
Adjustment Number in effect immediately prior to such event shall be adjusted by
multiplying such Adjustment Number by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

                  Section 7. Consolidation, Merger, etc. In case the Corporation
shall enter into any consolidation, merger, combination or other transaction in
which the shares of Common Stock are exchanged for or changed into other stock
or securities, cash and/or any other property, then in any such case the shares
of Series A Junior Participating Preferred Stock shall at the same time be
similarly exchanged or changed in an amount per share (subject to the provision
for adjustment hereinafter set forth) equal to 1000 times the aggregate amount
of stock, securities, cash and/or any other property (payable in kind), as the
case may be, into which or for which each share of Common Stock is changed or
exchanged. In the event the Corporation shall at any time after the Rights
Declaration Date (i) declare any dividend on Common Stock payable in shares of
Common Stock, (ii) subdivide the outstanding Common Stock, or (iii) combine the
outstanding Common Stock into a smaller number of shares, then in each such case
the amount set forth in the preceding sentence with respect to the exchange or
change of shares of Series A Junior Participating Preferred Stock shall be
adjusted by multiplying such amount by a fraction the numerator of which is the
number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

                  Section 8. No Redemption. The shares of Series A Junior
Participating Preferred Stock shall not be redeemable.

                  Section 9. Ranking. The Series A Junior Participating
Preferred Stock shall rank junior to all other series of the Corporation's
Preferred Stock as to the payment of dividends and the distribution of assets,
unless the terms of any such series shall provide otherwise.

                  Section 10. Amendment. The Restated Certificate of
Incorporation, as amended, of the Corporation shall not be further amended in
any manner which would materially alter or change the powers, preferences or
special rights of the Series A Junior Participating Preferred Stock so as to
affect them adversely without the affirmative vote of the holders of a majority
or more of the outstanding shares of Series A Junior Participating Preferred
Stock, voting separately as a class.

                  Section 11. Fractional Shares. Series A Junior Participating
Preferred Stock may be issued in fractions of a share which shall entitle the
holder, in proportion to such

                                      -8-

<PAGE>

holder's fractional shares, to exercise voting rights, receive dividends,
participate in distributions and to have the benefit of all other rights of
holders of Series A Junior Participating Preferred Stock.

                                      -9-

<PAGE>

                  IN WITNESS WHEREOF, we have executed and subscribed this
Certificate and do affirm the foregoing as true under the penalties of perjury
this 11th day of May, 1999.

                                         /s/ William R. Berkley
                                         ----------------------
                                         William R. Berkley
                                         Chairman of the Board

                                         /s/ Cornelius T. Finnegan III
                                         -----------------------------
                                         Secretary

                                      -10-

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.2
<SEQUENCE>4
<FILENAME>y89010exv3w2.txt
<DESCRIPTION>AMENDMENT TO THE COMPANY'S RESTATED CERTIFICATE
<TEXT>
<PAGE>
EXHIBIT 3.2

                            CERTIFICATE OF AMENDMENT
                                       OF
                      RESTATED CERTIFICATE OF INCORPORATION
                                       OF
                            W. R. BERKLEY CORPORATION

                  The undersigned, being the Chairman of the Board and Chief
Executive Officer of W. R. BERKLEY CORPORATION, a corporation existing under the
laws of the State of Delaware, hereby certifies that:

         1.       The first paragraph of Article Fourth of the Restated
Certificate of Incorporation of said corporation be and it hereby is amended to
read as follows:

         FOURTH: The aggregate number of shares of capital stock of all classes
which the Corporation shall have authority to issue is one hundred fifty-five
million (155,000,000) shares, of which one hundred fifty million (150,000,000)
shares are to be Common Stock of the par value of twenty cents ($.20) each, and
five million (5,000,000) shares are to be Preferred Stock of the par value of
ten cents ($.10) each.

         2.       The amendment was duly adopted in accordance with the
provisions of Section 242 of the General Corporation Law of the State of
Delaware.

                  IN WITNESS WHEREOF, I have signed this certificate this 20th
day of May, 2003.

                                  /s/ William R. Berkley
                                  ------------------------
                                  William R. Berkley
                                  Chairman of the Board and
                                  Chief Executive Officer

Attest:

/s/  Ira S. Lederman
- --------------------------
Ira S. Lederman, Secretary


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>5
<FILENAME>y89010exv10w2.txt
<DESCRIPTION>FORM OF RESTRICTED STOCK UNIT AGREEMENT
<TEXT>
<PAGE>

EXHIBIT 10.2

                              RESTRICTED STOCK UNIT
                                    AGREEMENT

                  THIS AGREEMENT, dated as of April 4, 2003, by and between W.
R. BERKLEY CORPORATION, a Delaware corporation (the "Company"), and
_____________________________ (the "Grantee").

                              W I T N E S S E T H:

                  WHEREAS, the Grantee is an employee of the Company or
subsidiary thereof (an "Employee"), and the Company wishes to grant the Grantee
a notional interest in shares of the Company's common stock, par value $0.20 per
share (the "Stock"), subject to certain restrictions (the "Restricted Stock
Units"), on the terms and conditions set forth herein; and

                  WHEREAS, through the grant of these Restricted Stock Units,
the Company hopes to incentivise and retain the services of Grantee and
encourage stock ownership by Grantee in order to give Grantee a proprietary
interest in the Company's success and align Grantee's interest with those of the
stockholders of the Company.

                  NOW, THEREFORE, in consideration of the covenants and
agreements herein contained, the parties hereto hereby agree as follows:

         SECTION 1. GRANT OF RESTRICTED STOCK UNITS. As of the date hereof, the
Company hereby grants to the Grantee ________ Restricted Stock Units. Each
Restricted Stock Unit shall represent the right to receive one share of Stock
subject to the terms and conditions set forth herein.

         SECTION 2. NON-TRANSFERABILITY. Except as specifically consented to by
the Compensation and Stock Option Committee (the "Committee") of the Board of
Directors of the Company (the "Board"), the Grantee may not sell, transfer,
pledge, or otherwise encumber or dispose of the Restricted Stock Units other
than by will or the laws of descent and distribution.

         SECTION 3. VESTING; FORFEITURE.

                  (a)      The Restricted Stock Units granted hereunder shall
vest (subject to forfeiture, as set forth in Section 3(d) below) on the fifth
anniversary of the date hereof, provided the Grantee has remained an Employee
from the date hereof through such fifth anniversary. In the event that Grantee's
employment with the Company is terminated on account of death, Disability or
Retirement (each, as defined below), a pro-rata portion of the Restricted Stock
Units shall vest (subject to forfeiture, as set forth in Section 3(d) below)
immediately upon such termination. The number of Restricted Stock Units that
will vest upon termination on account of death, Disability or Retirement shall
be the total number of Restricted Stock Units granted hereunder multiplied by a
fraction, the numerator of which is the number of days the Grantee served as an
Employee from the date of this Agreement to the date of such termination and the
denominator of which is one thousand eight hundred twenty five (1,825).
Notwithstanding the vesting schedule set forth above, the Committee shall have
absolute discretion to accelerate the vesting (subject to forfeiture, as set
forth in Section 3(d) below) of the Restricted Stock Units at any time and for
any reason.

                  (b)      In the event that Grantee's employment with the
Company is terminated for any reason, all unvested Restricted Stock Units
(except for those that vest immediately upon death, Disability or Retirement)
shall be forfeited, and the Grantee shall have no further rights with respect to
such Restricted Stock Units.

<PAGE>

                  (c)      For purposes of this Agreement, the Grantee's
employment will be deemed to have terminated on account of a Disability if such
employment has terminated on account of the total and permanent disability of
the Grantee, as determined by the Committee in its sole discretion. For purposes
of this Agreement, the Grantee's employment will be deemed to have terminated on
account of Grantee's Retirement if such employment is terminated and thereafter
Grantee either retires from gainful employment or becomes employed outside of
the property/casualty insurance or reinsurance industry.

                  (d)      The Grantee agrees not to engage in a Competitive
Action (as defined below) from the date hereof through the first anniversary of
the date of Grantee's termination of employment with the Company. If on or prior
to the Settlement Date (as defined below), the Grantee engages in a Competitive
Action or enters into, or has entered into, an agreement (written, oral or
otherwise) to engage in Competitive Action, all of the Restricted Stock Units
shall be immediately forfeited, and the Grantee shall have no further rights
with respect to such Restricted Stock Units. In the event that the Grantee
engages in a Competitive Action or enters into, or has entered into, an
agreement (written, oral or otherwise) to engage in Competitive Action after the
Settlement Date but on or prior to the first anniversary of the Grantee's
termination of employment with the Company, the Grantee shall pay to the
Company, upon demand by the Company, an amount equal to (i) the value, as of the
Settlement Date, of the number of shares of Stock delivered to the Grantee in
respect of Restricted Stock Units, (ii) the amount paid to the Grantee on the
Settlement Date in respect of Dividend Equivalents (as defined below) and
interest thereon and (iii) the value of all dividends paid to the Grantee in
respect of the shares of Stock delivered to the Grantee on the Settlement Date.
The Grantee may satisfy the payment obligation to the Company under (i) above by
returning the shares delivered to the Grantee on the Settlement Date.

                  (e)      For purposes of this Agreement, the Grantee will be
deemed to engage in a "Competitive Action" if, either directly or indirectly,
and whether as an employee, consultant, independent contractor, partner, joint
venturer or otherwise, the Grantee (i) in any geographical area where the
Company is engaged in business, engages in any business activities which are
competitive, to any material extent, with any type or kind of business
activities conducted by the Company in such area, (ii) on behalf of any person
or entity engaged in business activities competitive with the business
activities of the Company, solicits or induces, or in any manner attempts to
solicit or induce, any person employed by, or as an agent of, the Company to
terminate such person's employment or agency relationship, as the case may be,
with the Company, (iii) diverts, or attempts to divert, any person, concern or
entity from doing business with the Company or attempts to induce any such
person, concern or entity to cease being a customer of the Company or (iv) makes
use of, or attempts to make use of, the Company's property or proprietary
information, other than in the course of the performance of services to the
Company or at the direction of the Company. The determination as to whether the
Grantee has engaged in a Competitive Action (as defined herein) shall be made by
the Committee in its sole and absolute discretion. The Committee's exercise or
nonexercise of such discretion with respect to any particular event or
occurrence by or with respect to the Grantee or any other recipient of
restricted stock units shall not in any way reduce or eliminate the authority of
the Committee to (i) determine that any event or occurrence by or with respect
to the Grantee constitutes engaging in a Competitive Action or (ii) determine
the related Competitive Action date.

         SECTION 4. DELIVERY AND POSSESSION OF SHARE CERTIFICATES. Ninety (90)
days following the Grantee's termination of employment for any reason, or such
earlier date as determined by the Committee in its sole discretion (the
"Settlement Date"), provided the Grantee has not engaged in, or entered into an
agreement (written, oral or otherwise) to engage in, Competitive Action, the
Company shall deliver to the Grantee (or the Grantee's estate in the event of
death) a certificate or certificates representing the number of shares of Stock
equal to the number of vested Restricted

                                      - 2 -

<PAGE>

Stock Units (if any) as of the date of such termination and Grantee shall take
possession thereof. Settlement of the Restricted Stock Units shall be made
exclusively from treasury shares held by the Company. Notwithstanding anything
herein to the contrary, in the event of a Change of Control (as defined below),
the Restricted Stock Units shall immediately become fully vested and no longer
subject to forfeiture and the Company shall immediately deliver to the Grantee
(or the Grantee's estate in the event of death) a certificate or certificates
representing the number of shares of Stock equal to the number of vested
Restricted Stock Units.

         SECTION 5. DIVIDENDS AND DIVIDEND EQUIVALENTS. No dividends or dividend
equivalents shall accrue or be paid with respect to any outstanding unvested
Restricted Stock Units. With respect to each vested Restricted Stock Unit, an
amount equal to any cash dividends paid by the Company in respect of a share of
Stock shall be accrued for the account of the Grantee at the time any such
dividends are paid to stockholders (the "Dividend Equivalents"). The Dividend
Equivalents shall be subject to forfeiture to the same extent that the
corresponding Restricted Stock Units are subject to forfeiture. On the
Settlement Date, an amount equal to the Dividend Equivalents accrued for the
account of the Grantee (plus any interest accrued with respect to such Dividend
Equivalents) shall be paid to the Grantee in cash. Accrued Dividend Equivalents
shall be credited with interest, compounded quarterly. The interest rate will be
the prime rate in effect from time to time as reported in the Wall Street
Journal or as established by the Committee prior to the beginning of each year.

         SECTION 6. COMPANY; GRANTEE.

                  (a)      The term "Company" as used in Section 3 or otherwise
in this Agreement with reference to the Grantee's employment shall include the
Company and its subsidiaries. The term "subsidiary" as used in this Agreement
shall mean any subsidiary of the Company as defined in Section 424(f) of the
Internal Revenue Code of 1986, as amended.

                  (b)      Whenever the word "Grantee" is used in any provision
of this Agreement under circumstances where the provision should logically be
construed to apply to the executors, the administrators, or the person or
persons to whom the Restricted Stock Units may be transferred by will or by the
laws of descent and distribution, the word "Grantee" shall be deemed to include
such person or persons.

         SECTION 7. COMPLIANCE WITH LAW. The securities granted hereunder have
not been registered under the Securities Act of 1933 (as now in effect or as
hereafter amended) (the "Securities Act"). The Grantee hereby confirms that the
Grantee has been informed that any shares of Stock acquired hereunder are
restricted securities under the Securities Act and may not be resold or
transferred unless the Stock is first registered under the Federal securities
laws or unless an exemption from registration is available. The Company shall in
no event be obliged to register any securities pursuant to the Securities Act or
to take any other affirmative action in order to cause the issuance or transfer
of shares acquired pursuant to this Agreement to comply with any law or
regulation of any governmental authority.

         SECTION 8. NOTICE. Every notice or other communication relating to this
Agreement shall be in writing, and shall be mailed to or delivered to the party
for whom it is intended at such address as may from time to time be designated
by it in a notice mailed or delivered to the other party as herein provided,
provided that, unless and until some other address be so designated, all notices
or communications by the Grantee to the Company shall be mailed or delivered to
the Company at its principal executive office, and all notices or communications
by the Company to the Grantee may be given to the Grantee personally or may be
mailed to Grantee at the Grantee's last known address, as reflected in the
Company's records.

                                      - 3 -

<PAGE>

         SECTION 9. CHANGES IN CAPITAL STRUCTURE.

                  (a)      The aggregate number of Restricted Stock Units
granted hereunder shall be automatically appropriately adjusted for any increase
or decrease in the number of outstanding shares of stock resulting from a stock
split or other subdivision or consolidation of shares of Stock or for other
capital adjustments or payments of stock dividends or stock distributions or
other increases or decreases in the outstanding shares of Stock without receipt
of consideration by the Company. Any such adjustment shall be conclusively
determined by the Board.

                  (b)      In the event of any change in the outstanding shares
of Stock by reason of any recapitalization, merger, consolidation, spin-off,
combination or exchange of shares or other corporate change, or any
distributions to common stockholders other than cash dividends, the Board shall
make such substitution or adjustment, if any, as it deems to be equitable, as to
the number or kind of shares of Stock or other securities issued pursuant to
this Agreement.

                  (c)      The existence of this Agreement will not affect in
any way the right or power of the Company or its stockholders to make or
authorize any of the following:

                           (i)      any adjustments, recapitalization,
         reorganizations or other changes in the Company's capital structure or
         its business;

                           (ii)     any merger or consolidation of the Company;

                           (iii)    any issue of stock or of options, warrants
         or rights to purchase stock or of bonds, debentures, preferred to prior
         preference stocks ahead of or affecting the Stock or the rights thereof
         or convertible into or exchangeable for Stock;

                           (iv)     the dissolution or liquidation of the
         Company;

                           (v)      any sale or transfer of all or any part of
         its assets or business; or

                           (vi)     any other corporate act or proceeding.

         SECTION 10. CHANGE OF CONTROL. For purposes of this Agreement, a
"Change of Control" shall mean:

                  (a)      The acquisition by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act")) (a "Person") of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of either (i) the then outstanding shares of Stock (the
"Outstanding Company Stock") or (ii) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the "Outstanding Company Voting Securities"); provided,
however, that for purposes of this subsection (a), the following acquisitions
shall not constitute a Change of Control: (i) any acquisition directly from the
Company, (ii) any acquisition by the Company, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company,
(iv) any acquisition by William R. Berkley or any entity directly or indirectly
controlled by William R. Berkley, (v) any acquisition by any corporation
pursuant to a transaction which complies with clauses (i), (ii), and (iii) of
subsection (c) of this Section 10 or (vi) any acquisition that is approved in
advance by the Board at a time when the Incumbent Board (as hereinafter defined)
constitutes at least a majority of the Board (an "Approved Acquisition"); or

                                      - 4 -

<PAGE>

                  (b)      Individuals who, as of the date hereof, constitute
the Board (the "Incumbent Board") cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company's stockholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

                  (c)      Consummation of the sale or reorganization of the
Company or the consolidation or merger of the Company with another corporation,
or the sale or exchange of all or substantially all of the assets of the Company
(a "Corporate Event"), unless following such Corporate Event, (i) all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Stock and Outstanding Company
Voting Securities immediately prior to such Corporate Event beneficially own,
directly or indirectly, more than 50% of, respectively, the then outstanding
shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as
the case may be, of the corporation resulting from such Corporate Event
(including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company's assets
either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Corporate Event, of
the Outstanding Company Stock and Outstanding Company Voting Securities, as the
case may be, (ii) no Person other than (1) William R. Berkley or any entity
directly or indirectly controlled by William R. Berkley, (2) any corporation
resulting from such Corporate Event, or (3) any employee benefit plan (or
related trust) of the Company or such corporation resulting from such Corporate
Event, beneficially owns, directly or indirectly, 20% or more of, respectively,
the then outstanding shares of common stock of the corporation resulting from
such Corporate Event or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership existed
prior to the Corporate Event, or was acquired pursuant to an Approved
Acquisition and (iii) at least a majority of the members of the board of
directors of the corporation resulting from such Corporate Event were members of
the Incumbent Board at the time of the execution of the initial agreement, or of
the action of the Board, providing for such Corporate Event; or

                  (d)      Approval by the stockholders of the Company of a
complete liquidation or dissolution of the Company.

         SECTION 11. WITHHOLDING. At the time of vesting and/or settlement of
the Restricted Stock Units, as appropriate, the Committee shall require the
Grantee to pay to the Company an amount sufficient to pay all federal, state and
local withholding taxes applicable, in the Committee's judgment, to the
settlement of the Restricted Stock Units, and the Grantee's right to vesting
and/or settlement, as appropriate, shall be contingent upon such payment. Such
payment to the Company may be effected through (a) payment by the recipient to
the Company of the aggregate withholding taxes in cash or cash equivalents; (b)
at the discretion of the Committee, the Company's withholding from the number of
shares of Stock that would otherwise be delivered to the Grantee upon settlement
of the Restricted Stock Units, a number of shares of Stock with an aggregate
fair market value on the date of settlement (as determined by the Committee)
equal to the aggregate amount of withholding taxes; or (c) at the discretion of
the Committee, any combination of these two methods.

                                      - 5 -

<PAGE>

         SECTION 12. AGREEMENT TO ARBITRATE. Any controversy or claims between
the parties arising out of or related to this Agreement shall be submitted to
binding arbitration before the American Arbitration Association in the greater
New York metropolitan area and judgment upon the award rendered as a result of
such arbitration shall be final and binding and may be entered in any court
having competent jurisdiction. Any such arbitration shall be conducted by a
panel of three arbitrators under the "baseball arbitration" methodology. As
such, each party shall submit to the arbitrator and exchange with each other in
advance of the arbitration hearing their last best offers for settlement of the
controversy or claim under the Agreement. The arbitrators shall be limited to
ruling in favor of one or the other parties.

         SECTION 13. NO RIGHT TO CONTINUED SERVICE. This Agreement does not
confer upon the Grantee any right to continue as an Employee of the Company, nor
shall it interfere in any way with the right of the Company to terminate
Grantee's employment at any time for any reason.

         SECTION 14. BINDING EFFECT. This Agreement shall be binding upon the
heirs, executors, administrators and successors of the parties hereto.

         SECTION 15. GOVERNING LAW. This Agreement shall be construed and
interpreted in accordance with the laws of the State of Delaware, without regard
to the principles of conflicts of law thereof.

         SECTION 16. SIGNATURE IN COUNTERPARTS. This Agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument.

                                      * * *

                  THIS AGREEMENT CONTAINS AN ARBITRATION CLAUSE IN SECTION 12.

                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the day and year first above written.

                                     W. R. BERKLEY CORPORATION

                                     By: ___________________________
                                         Name:
                                         Title:

                                     __________________________________

                                      - 6 -

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>6
<FILENAME>y89010exv31w1.txt
<DESCRIPTION>302 CERTIFICATION: CEO
<TEXT>
<PAGE>
EXHIBIT 31.1

                                 CERTIFICATIONS

I, William R. Berkley, Chairman of the Board and Chief Executive Officer of W.
R. Berkley Corporation (the "registrant"), certify that:

         1.       I have reviewed this quarterly report on Form 10-Q of the
                  registrant;

         2.       Based on my knowledge, this report does not contain any untrue
                  statement of a material fact or omit to state a material fact
                  necessary to make the statements made, in light of the
                  circumstances under which such statements were made, not
                  misleading with respect to the period covered by this report;

         3.       Based on my knowledge, the financial statements, and other
                  financial information included in this report, fairly present
                  in all material respects the financial condition, results of
                  operations and cash flows of the registrant as of, and for,
                  the periods presented in this report;

         4.       The registrant's other certifying officer(s) and I are
                  responsible for establishing and maintaining disclosure
                  controls and procedures (as defined in Exchange Act Rules
                  13a-15(e) and 15d-15(e)) for the registrant and have:

                           a)       Designed such disclosure controls and
                                    procedures, or caused such disclosure
                                    controls and procedures to be designed under
                                    our supervision, to ensure that material
                                    information relating to the registrant,
                                    including its consolidated subsidiaries, is
                                    made known to us by others within those
                                    entities, particularly during the period in
                                    which this report is being prepared;

                           b)       Evaluated the effectiveness of the
                                    registrant's disclosure controls and
                                    procedures and presented in this report our
                                    conclusions about the effectiveness of the
                                    disclosure controls and procedures, as of
                                    the end of the period covered by this report
                                    based on such evaluation; and

                           c)       Disclosed in this report any change in the
                                    registrant's internal control over financial
                                    reporting that occurred during the
                                    registrant's most recent fiscal quarter that
                                    has materially affected, or is reasonably
                                    likely to materially affect, the
                                    registrant's internal control over financial
                                    reporting; and

         5.       The registrant's other certifying officer(s) and I have
                  disclosed, based on our most recent evaluation of internal
                  control over financial reporting, to the registrant's auditors
                  and the audit committee of the registrant's board of directors
                  (or persons performing the equivalent functions):

                           a)       All significant deficiencies and material
                                    weaknesses in the design or operation of
                                    internal control over financial reporting
                                    which are reasonably likely to adversely
                                    affect the registrant's ability to record,
                                    process, summarize and report financial
                                    information; and

                           b)       Any fraud, whether or not material, that
                                    involves management or other employees who
                                    have a significant role in the registrant's
                                    internal control over financial reporting.

Date: August 6, 2003

                                    /s/ WILLIAM R. BERKLEY
                                    --------------------------
                                    William R. Berkley
                                    Chairman of the Board and
                                    Chief Executive Officer


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>7
<FILENAME>y89010exv31w2.txt
<DESCRIPTION>302 CERTIFICATION: CFO
<TEXT>
<PAGE>

EXHIBIT 31.2

                                 CERTIFICATIONS

I, Eugene G. Ballard, Senior Vice President, Chief Financial Officer and
Treasurer of W. R. Berkley Corporation (the "registrant"), certify that:

         1.       I have reviewed this quarterly report on Form 10-Q of the
                  registrant;

         2.       Based on my knowledge, this report does not contain any untrue
                  statement of a material fact or omit to state a material fact
                  necessary to make the statements made, in light of the
                  circumstances under which such statements were made, not
                  misleading with respect to the period covered by this report;

         3.       Based on my knowledge, the financial statements, and other
                  financial information included in this report, fairly present
                  in all material respects the financial condition, results of
                  operations and cash flows of the registrant as of, and for,
                  the periods presented in this report;

         4.       The registrant's other certifying officer(s) and I are
                  responsible for establishing and maintaining disclosure
                  controls and procedures (as defined in Exchange Act Rules
                  13a-15(e) and 15d-15(e)) for the registrant and have:

                           a)       Designed such disclosure controls and
                                    procedures, or caused such disclosure
                                    controls and procedures to be designed under
                                    our supervision, to ensure that material
                                    information relating to the registrant,
                                    including its consolidated subsidiaries, is
                                    made known to us by others within those
                                    entities, particularly during the period in
                                    which this report is being prepared;

                           b)       Evaluated the effectiveness of the
                                    registrant's disclosure controls and
                                    procedures and presented in this report our
                                    conclusions about the effectiveness of the
                                    disclosure controls and procedures, as of
                                    the end of the period covered by this report
                                    based on such evaluation; and

                           c)       Disclosed in this report any change in the
                                    registrant's internal control over financial
                                    reporting that occurred during the
                                    registrant's most recent fiscal quarter that
                                    has materially affected, or is reasonably
                                    likely to materially affect, the
                                    registrant's internal control over financial
                                    reporting; and

         5.       The registrant's other certifying officer(s) and I have
                  disclosed, based on our most recent evaluation of internal
                  control over financial reporting, to the registrant's auditors
                  and the audit committee of the registrant's board of directors
                  (or persons performing the equivalent functions):

                           a)       All significant deficiencies and material
                                    weaknesses in the design or operation of
                                    internal control over financial reporting
                                    which are reasonably likely to adversely
                                    affect the registrant's ability to record,
                                    process, summarize and report financial
                                    information; and

                           b)       Any fraud, whether or not material, that
                                    involves management or other employees who
                                    have a significant role in the registrant's
                                    internal control over financial reporting.

Date: August 6, 2003

                                        /s/ EUGENE G. BALLARD
                                        -----------------------------
                                        Senior Vice President,
                                        Chief Financial Officer and
                                        Treasurer


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>8
<FILENAME>y89010exv32w1.txt
<DESCRIPTION>906 CERTIFICATION: CEO AND CFO
<TEXT>
<PAGE>

EXHIBIT 32.1

                            CERTIFICATION PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of W. R. Berkley Corporation (the
"Company") on Form 10-Q for the period ended June 30, 2003 as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), we,
William R. Berkley, Chairman of the Board and Chief Executive Officer of the
Company, and Eugene G. Ballard, Senior Vice President, Chief Financial Officer
and Treasurer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted
pursuant to ss.906 of the Sarbanes-Oxley Act of 2002, that:

         (1)      The Report fully complies with the requirements of section
                  13(a) or 15(d) of the Securities Exchange Act of 1934; and

         (2)      The information contained in the Report fairly presents, in
                  all material respects, the financial condition and results of
                  operations of the Company.

/s/ WILLIAM R. BERKLEY
- ------------------------------

William R. Berkley
Chairman of the Board and Chief Executive Officer

/s/ EUGENE G. BALLARD
- -----------------------------

Eugene G. Ballard
Senior Vice President - Chief Financial Officer and Treasurer

August 6, 2003

A signed original of this written statement required by Section 906 has been
provided to W. R. Berkley Corporation (the "Company") and will be retained by
the Company and furnished to the Securities and Exchange Commission or its staff
upon request.

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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