WRB 10-K & 10-Q changes, risk factors and insider trading
Berkley W R Corp. (also WRB-PE, WRB-PF, WRB-PG, WRB-PH) · NYSE · Fire, Marine & Casualty Insurance · CIK 11544 · All filings on SEC.gov
At a glance
What changed in the latest 10-K
Risk Factors
New heading “Adverse economic factors, including recessions, inflation, periods of high unemployment, the impact of tariffs or lower economic activity could result in the sale of fewer policies than expected or an increase in frequency or severity of claims and premium defaults or both, which, in turn, could affect our growth and profitability.”
New heading “Given the inherent uncertainty of models, the usefulness of such models as a tool to evaluate risk is subject to a high degree of uncertainty that could result in actual losses that are materially different than our estimates. A deviation from our loss estimates may adversely impact, perhaps significantly, our financial results.”
New heading “Our employees could take excessive risks, which could negatively affect our financial condition and business.”
Largest changes
“Adverse economic factors, including recessions, inflation, periods of high unemployment, the impact of tariffs or lower economic activity could result in the sale of fewer policies than expected or an increase in frequency or severity of claims and premium defaults or both, which, in turn, could affect our growth and profitability.”see in full comparison
“In addition, AI technologies may be misused, and that risk is increased by the relative newness of the technology, the speed at which it is being adopted, and ongoing uncertainty with respect to the laws, regulations, and standards governing its development and deployment federally, across states, and internationally. Such misuse, and a realization of the previously mentioned risks, could negatively impact our reputation, financial condition and results of operations, the demand for our products and services, otherwise cause competitive harm, and/or draw adverse legal and regulatory scrutiny. …”see in full comparison
Products or services offered that develop orsee in full comparisonadoptemploy artificial intelligence (“AI”) technologies, including generative AI and machine learning, offer potential benefits (e.g.,with respect toefficiency) but likewise may raise technological, security, legal and other risks and challenges that may adversely affect our operations, business, or reputation. Such risks include the misuse, inadvertent or otherwise, of personal data or other sensitive, confidential or proprietary information; flaws in our models or training datasets resulting in biased, inaccurate or unanticipated outcomes; ethical considerations regarding the use and deployment of AI technologies; potential infringement of third-party intellectual property rights or the dilution of our intellectual property; and our ability to implement appropriate governance controls to ensure the ongoing, safe deployment of AI systems. As we make significant investments in AI and related technology and increasingly rely on the use of AI by third parties, we may not achieve the expected operational and other benefits, or such benefits may take longer than anticipated, and our competitors may adopt AI technologiesmaymorebeeffectivelymisused,orandefficientlythatthanriskweis increased by the relative newness of the technology, the speed atdo, whichitmayisadverselybeing adopted, and ongoing uncertainty with respect to the laws, regulations, and standards governing its development and deployment federally, across states, and internationally. Such misuse, and a realization of the previously mentioned risks, could negatively impactaffect ourreputation,marketfinancial conditionposition and results ofoperations, the demand for our products and services, otherwise cause competitive harm, and/or draw adverse legal and regulatory scrutiny. Moreover, because some AI technologies are relatively new, such as generative AI, many of the potential risks regarding their use are currently unknown.operations.
“Numerous factors, such as business revenue, economic conditions, the impact of tariffs, the volatility and strength of the capital markets and inflation can affect the business and economic environment. These same factors affect our ability to generate revenue and profits. In an economic downturn that is characterized by higher unemployment, declining spending and reduced corporate revenues, the demand for insurance products is generally adversely affected, which directly affects our premium levels and profitability. …”see in full comparison
“Given the inherent uncertainty of models, the usefulness of such models as a tool to evaluate risk is subject to a high degree of uncertainty that could result in actual losses that are materially different than our estimates. A deviation from our loss estimates may adversely impact, perhaps significantly, our financial results.”see in full comparison
“Our employees could take excessive risks, which could negatively affect our financial condition and business.”see in full comparison
Full comparison: every changed paragraph (40)
The demand for insurance is influenced primarily by general economic conditions, including the impact of tariffs, while the supply of insurance is often directly related to available capacity based on the perceived profitability of the business. The adequacy of premium rates is affected mainly by the severity and frequency of claims, which are influenced by many factors, including natural disasters and other catastrophic events, regulatory measures and court decisions that define and expand the extent of coverage, and the effects of economic and social inflation on the amount of claims payments due for injuries or losses. In addition, investment rates of return impact rate adequacy. These factors can have a significant impact on ultimate profitability because a property casualty insurance policy is priced before its costs are known as premiums usually are determined long before claims are reported. These factors could produce results that would have a negative impact on our results of operations and financial condition.
The uncertainty of an insurer’s ultimate loss costs, and fluctuating competitive conditions, result in alternating periods of “hard” markets (more profitable for insurers) and “soft” markets (less profitable for insurers). In recent years, improvement (or deterioration) in various lines of property casualty insurance has become less uniform in its cyclicality, with changes frequently happening at different rates, and even at times in different directions. OverRecently, the past several years, premiuminsurance rates have increasedgenerally moderated for mostmany lines of business, whileparticularly theyfor haveproperty decreasedlines, which in others,some mostinstances notablyare experiencing rate decreases. Rates for workers' compensation and certain professional liability lines of business.business continue to decrease.
We compete with a large number of other companies in our selected lines of business. We compete, and will continue to compete, with major U.S. and non-U.S. insurers and reinsurers, other regional companies, as well as mutual companies, specialty insurance companies, underwriting agencies, diversified financial services companies and insurtech companies. Competitiveness in our businesses is based on many factors, including premium charges, ratings assigned by independent rating agencies, commissions paid to producers, the perceived financial strength of the company, other terms and conditions offered, services provided, ease of doing business, speed of claims payment and reputation and experience in the lines to be written. Periods of insurance industry consolidation may further increase competition in some parts of our business and may cause our insurance subsidiaries to incur greater customer retention and acquisition expenses, affecting the profitability of existing and new business. At times, we have facedface significant competition in our business as a result of existing insurers seeking to gain or maintain market share as well as new entrants and capital providers.
Some of our competitors, particularly in the reinsurance business, have greater financial and/or marketing resources than we do. These competitors within the reinsurance market include Swiss Re, Munich Re, Berkshire Hathaway and PartnerHannover Re. We expect that perceivedPerceived financial strength, in particular, will become moreis important as customers seek high quality reinsurers.
Recently, insurance pricesrate increases have generally increasedmoderated for mostmany lines of business, excludingparticularly for property lines, which in some instances are experiencing rate decreases. Rates for workers' compensation and certain professional liability lines of business.business However,continue lossto decrease. Loss costs havecontinue alsoto increasedincrease, andprincipally thedue durationto andcontinued magnitudesocial ofinflation. the improved pricing environment remains uncertain. Despite higher interest rates, currentCurrent price levels for certain lines of business may remain below the prices required for us to achieve our long-term return objectives. We expect to continue to face strong competition in our business.
The COVID-19 pandemic, including the related impact on the U.S. and global economies, materially and adversely affected our results of operations. New or emerging pandemics, whether related to COVID-19 or otherwise, may materially and adversely affect our results of operations, financial position and liquidity, including the following:
Changing climate conditions may alter the frequency and increase the severity of catastrophic events and thereby adversely affect our financial condition and results.results of operations.
In recent years, changing weather patterns and climatic conditions, such as global warming, appear to have contributed to the unpredictability, frequency and severity of natural disasters and created additional uncertainty as to future trends and exposures. There is a scientific consensus that global warming and other climate change are altering the frequency, severity and peril characteristics of catastrophic weather events, such as hurricanes, windstorms, floods, wildfires and other natural disasters. Such changes make it more difficult for us to predict and model catastrophic events, reducing our ability to accurately price our exposure to such events and mitigate our risks. Any increase in the frequency or severity of natural disasters may adversely affect our financial condition and results.results of operations.
We, as a primary insurer, may have significant exposure forto terrorist acts.
To the extent an act of terrorism, whether a domestic or foreign act, is certified by the Secretary of Treasury, we may be covered under the Terrorism Risk Insurance Program Reauthorization Act of 2019 (“TRIPRA”), for up to 80% of our covered losses for certain property/casualty lines of insurance. However, any such coverage would be subject to a mandatory deductible based on 20% of earned premium for the prior year for the covered lines of commercial property and casualty insurance. Based on our 20242025 earned premiums, our aggregate deductible under TRIPRA during 20252026 is approximately $1,663$1,835 million. In addition, the coverage provided under TRIPRA does not apply to reinsurance that we write. To the extent that our reinsurers have excluded coverage for certain terrorist acts or have priced this coverage at rates that make purchasing such coverage economically infeasible, we may not have reinsurance protection and could be exposed to potentialpotentially significant losses as a result of any acts of terrorism.
State regulation is the primary form of regulation of insurance and reinsurance in the United States, although Congress has considered various proposals regarding federal regulation of insurance, in addition to the changes brought about by the Dodd-Frank Act, such as proposals for the creation of an optional federal charter for insurance companies. We may be subject to potentially increased federal oversight as a financial institution. In addition, the newcurrent U.S. administration and the volatile political environment increases the chance of other federal legislative and regulatory changes that could affect us in ways we cannot predict.
With respect to international measures, Solvency II, the EU regime concerning the capital adequacy, risk management and regulatory reporting for insurers and reinsurers may affect our insurance businesses. As described in “International Regulation” above, the EU has recentlyadopted amendedamendments to certain provisions in Solvency II, which EU member states willare implementin the process of implementing in their domestic regulation over the2025 nextand two years.2026. In addition, despite the waiver of the Solvency II group capital requirements we received, any changes in the application of Solvency II (or any further amendments to Solvency II itself) may have the effect of increasing the capital requirements of our EU domiciled insurers. Additionally, our capital requirements and compliance requirements may be adversely affected if the European Commission does not deem the insurance regulatory regimes of the jurisdictions outside the EU in which we have insurance or reinsurance companies domiciled to be “equivalent” to Solvency II.
Similar considerations apply to our U.K. subsidiaries, which are now subject to a separate U.K. prudential regime that derives from Solvency II. However, the two regimes, and their respective requirements, have beguncontinue to diverge due to both the EU’s recent amendments to Solvency II described above and the reforms to the U.K.’s domestic prudential regime (please see “International Regulation” above for more information). We therefore may be required to utilize additional resources to ensure compliance with the different rules in each regime.
Adverse economic factors, including recessions, inflation, periods of high unemployment, the impact of tariffs or lower economic activity could result in the sale of fewer policies than expected or an increase in frequency or severity of claims and premium defaults or both, which, in turn, could affect our growth and profitability.
Numerous factors, such as business revenue, economic conditions, the impact of tariffs, the volatility and strength of the capital markets and inflation can affect the business and economic environment. These same factors affect our ability to generate revenue and profits. In an economic downturn that is characterized by higher unemployment, declining spending and reduced corporate revenues, the demand for insurance products is generally adversely affected, which directly affects our premium levels and profitability. Negative economic factors may also affect our ability to receive the appropriate rate for the risk we insure with our policyholders and may adversely affect the number of policies we can write, including with respect to our opportunities to underwrite profitable business. In an economic downturn, customers may have less need for insurance coverage, cancel existing insurance policies, modify their coverage or not renew the policies they hold. Existing policyholders may exaggerate or even falsify claims to obtain higher claims payments. These outcomes would reduce our underwriting profit to the extent these factors are not reflected in the rates we charge.
We face additional risks as a result of our international operations which could have an adverse effect on our results of operations and financial condition including: burdens and costs of compliance with a variety of foreign laws and regulations and the associated risk and costs of non-compliance; exposure to undeveloped or evolving legal systems, which may result in unpredictable or inconsistent application of laws and regulations; exposure to commercial, political, legal or regulatory corruption; political, economic or other instability in countries in which we conduct business, including possible terrorist acts; the imposition of existing or future tariffs, trade barriers or other protectionist laws or business practices that favor local competition, increased costs and adverse effects on our business; changes to visa or immigration policies; diminished ability to enforce our contractual rights; potential increased risk of data breaches; differences in cultural environments; sociopolitical instability; social, political or economic instability resulting from climate change; changes in regulatory requirements, including changes in regulatory treatment of certain products or services; exposure to local economic conditions and its impact on our clients’ performance and creditworthiness; and restrictions on the repatriation of non-U.S. investments and earnings.
Given the inherent uncertainty of models, the usefulness of such models as a tool to evaluate risk is subject to a high degree of uncertainty that could result in actual losses that are materially different than our estimates. A deviation from our loss estimates may adversely impact, perhaps significantly, our financial results.
Our approach to risk management relies on subjective variables that entail significant uncertainties. For example, we consider estimates of probability of exceedance and deterministic scenarios for certain events that are generated by computer-run models. In addition, we use historical data and scenarios, among other factors, to analyze and manage credit and interest rate risks in our investment portfolio. It is possible that actual events could give rise to losses materially different to those estimated by these models.
Small changes in assumptions, which depend heavily on our judgment and foresight, can have a significant impact on the modeled outputs. For example, catastrophe models that simulate loss estimates based on a set of assumptions are important tools used to estimate our exceedance probability curves. These assumptions address a number of factors that impact loss potential including, but not limited to, the characteristics of a given natural catastrophe event; the increase in claim costs resulting from limited supply of labor and materials needed for repairs following a catastrophe event (demand surge); the types, function, location and characteristics of exposed risks; susceptibility of exposed risks to damage from an event with specific characteristics; and the financial and contractual provisions of the (re)insurance contracts that cover losses arising from an event. We run many model simulations in order to understand the impact of these assumptions on a catastrophe’s loss potential.
Furthermore, there are risks associated with catastrophe events, which are either poorly represented or not represented at all by catastrophe models. Each modeling assumption or un-modeled risk introduces uncertainty into estimated modeled losses that management must consider. These uncertainties can include, but are not limited to, the following:
•The models do not address all the possible hazard characteristics of a catastrophe peril (e.g. the precise path and wind speed of a hurricane);
•The models may not accurately reflect the true frequency of events;
•The models may not accurately reflect a risk's vulnerability or susceptibility to damage for a given event characteristic;
•The models may not accurately represent loss potential to insurance or reinsurance contract coverage limits, terms and conditions; and
•The models may not accurately reflect the impact on the economy of the area affected or the financial, judicial, political, or regulatory impact on insurance claim payments during or following a catastrophe event.
As a result of these factors and contingencies, our reliance on assumptions and data used to estimate exceedance probability curves and modeled scenario losses is subject to a high degree of uncertainty that could result in actual losses that are materially different from our modeled estimates and our financial results could be adversely affected.
Our employees could take excessive risks, which could negatively affect our financial condition and business.
As an insurance enterprise, we are in the business of binding certain risks. The employees who conduct our business, including executive officers and other members of management, underwriters, product managers and other employees, do so in part by making decisions and choices that involve exposing us to risk. These include decisions such as setting underwriting guidelines and standards, product design and pricing, determining which business opportunities to pursue and other decisions. We endeavor, in the design and implementation of our compensation programs and practices, to avoid giving our employees incentives to take excessive risks. Employees may, however, take such risks regardless of the structure of our compensation programs and practices. Similarly, although we employ controls and procedures designed to monitor employees’ business decisions and prevent them from taking excessive risks, these controls and procedures may not be effective. If our employees take excessive risks, the impact of those risks could have a material adverse effect on our financial condition and business operations.
Our business is highly dependent upon our employees' ability to perform necessary business functions in an efficient and uninterrupted fashion. A shutdown of, or inability to access, one or more of our facilities, a power outage or a failure of one or more of our information technology, telecommunicationstelecommunications, other computer systems, or other computercritical systemsinfrastructure could significantly impair our employees' ability to perform such functions on a timely basis. In the event of a disaster such as a natural catastrophe, terrorist attack or industrial accident, physical or electronic security breaches, such as breaches by computer hackers, the infection of our systems by a malicious computer virus, denial of service attack, or other cybersecurity incident, our systems could be inaccessible for an extended period of time. In addition, because our information technology and telecommunications systems interface with and depend on third-party systems and infrastructure beyond our control, we could experience service denials or failures of controls if demand for our service exceeds capacity or a third-party system or infrastructure fails or experiences an interruption. If our business continuity plans or system security does not sufficiently address such a business interruption, system failure or service denial, our ability to write and process new and renewal business, provide customer service, pay claims in a timely manner or perform other necessary business functions could be significantly impaired and our business and results of operations could be harmed.
Although we have taken reasonable steps intended to protect our data and information technology systemssystems, and to mitigate thepotential risk of harm caused by cybersecurity incidents or breaches, no safeguards are perfect and any failure of these safeguards could cause a substantial disruption of our business operations, which could result in service interruptions, data security compromises, regulatory action, and other similar operational and legal issues, as well as substantial remediation and other costs. Our operations rely on the secure processing, storage and transmission of confidential and other sensitive information, including personal information, in our computer systems and networks. Cybersecurity breaches, including physical or electronic break-ins, computer viruses, malware, attacks by hackers, ransomware attacks, phishing attacks, supply chain attacks, breaches due to employee error or misconduct and other similar breaches can create system disruptions, shutdowns or unauthorized access to, or disclosure of, information maintained in our information technology systems and in the information technology systems of our vendors and other third parties.parties on which we rely.
We have in the past experienced cybersecurity incidents affecting our information technology systems as well as the information technology systems of our vendors and other third parties, but, to our knowledge, we have not experienced any material cybersecurity breaches. We expect cybersecurity threats to continue to occur in the future and we are constantly managingresponding effortsto these threats to infiltrate and compromise our systems and data. Our electronic transmission of personal, confidential and proprietary information to third parties with whom we have business relationships and our outsourcing of certain technology and business process functions to third parties may expose us to enhanced risk related to data security. While we have implemented secure data transmission capabilities with these third-party vendors and others with whom we do business, such capabilities may not function as intended and our vendors and third parties could still suffer data breaches that could result in the exposure of sensitive data and the infiltration of our computer systems. Our failure to effectively protect sensitive personal and/or proprietary information, whether owing to breaches of our own systems or those of our vendors and other third parties, could result in significant monetary and reputational damages, material adverse effects to our financial condition, costly litigation, or other regulatory enforcement actions. These increased risks, and expanding regulatory requirements regarding data security, including required compliance with applicable privacy and data protection laws (e.g., the GDPR, CCPA, and other state-specific privacy statutes and regulations), could expose us to data loss, monetary and reputational damages and significant increases in compliance costs. As a result, our ability to conduct our business could be materially and adversely affected.
UseOur increasing investment in and use of artificial intelligence technologies or their use by us or third-parties on which we rely could expose us to technological, security, legal, and other risks.
Products or services offered that develop or adoptemploy artificial intelligence (“AI”) technologies, including generative AI and machine learning, offer potential benefits (e.g., with respect to efficiency) but likewise may raise technological, security, legal and other risks and challenges that may adversely affect our operations, business, or reputation. Such risks include the misuse, inadvertent or otherwise, of personal data or other sensitive, confidential or proprietary information; flaws in our models or training datasets resulting in biased, inaccurate or unanticipated outcomes; ethical considerations regarding the use and deployment of AI technologies; potential infringement of third-party intellectual property rights or the dilution of our intellectual property; and our ability to implement appropriate governance controls to ensure the ongoing, safe deployment of AI systems. As we make significant investments in AI and related technology and increasingly rely on the use of AI by third parties, we may not achieve the expected operational and other benefits, or such benefits may take longer than anticipated, and our competitors may adopt AI technologies maymore beeffectively misused,or andefficiently thatthan riskwe is increased by the relative newness of the technology, the speed atdo, which itmay isadversely being adopted, and ongoing uncertainty with respect to the laws, regulations, and standards governing its development and deployment federally, across states, and internationally. Such misuse, and a realization of the previously mentioned risks, could negatively impactaffect our reputation,market financial conditionposition and results of operations, the demand for our products and services, otherwise cause competitive harm, and/or draw adverse legal and regulatory scrutiny. Moreover, because some AI technologies are relatively new, such as generative AI, many of the potential risks regarding their use are currently unknown.operations.
In addition, AI technologies may be misused, and that risk is increased by the relative newness of the technology, the speed at which it is being adopted, and ongoing uncertainty with respect to the laws, regulations, and standards governing its development and deployment federally, across states, and internationally. Such misuse, and a realization of the previously mentioned risks, could negatively impact our reputation, financial condition and results of operations, the demand for our products and services, otherwise cause competitive harm, and/or draw adverse legal and regulatory scrutiny. Moreover, because some AI technologies such as generative AI are relatively new and rapidly evolving, many of the potential risks regarding their use are currently unknown. Our investment in and use of AI technologies and the introduction of new products and services may also expose us to new or enhanced risks, particularly in areas where we have less experience or our existing internal control systems may be insufficient, which could require us to make substantial expenditures or subject us to legal liability, heightened regulatory scrutiny and brand or reputational harm.
Although the historical rates of default on state and municipal securities have been relatively low, our state and municipal fixed maturity securities could be subject to a higher risk of default or impairment due to declining municipal tax bases and revenue.revenue, particularly in the event of a recession. Many states and municipalities operate under deficits or projected deficits, the severity and duration of which could have an adverse impact on both the valuation of our state and municipal fixed maturity securities and the issuer's ability to perform its obligations thereunder. Additionally, our investments are subject to losses as a result of a general decrease in commercial and economic activity for an industry sector in which we invest, as well as risks inherent in particular securities. Similarly, our investments in foreign government fixed maturity securities expose us to currency risk, in addition to the underlying credit, interest rate and other risks.
Certain provisions in our organizational and other documents (such as voting and other arrangements with Mitsui Sumitomo Insurance Co., Ltd.) may have the effect of hindering, delaying or preventing third party takeovers and thus may prevent our stockholders from receiving premium prices for their shares in an unsolicited takeover or make it more difficult for third parties to replace our current management.
•our classified board of directors and the ability of our board to increase its size and to appoint directors to fill newly created directorships; and
•the requirement that the holders of 80% of our shares must approve mergers and other transactions between us and the holder of 5% or more of our shares, unless the transaction was approved by our board of directors prior to such holder's acquisition of 5% of our shares; andshares.
In addition, Mitsui Sumitomo Insurance Co., Ltd. ("MSI"), which owns approximately 14.7% of our common stock as of February 23, 2026, has entered into voting and other arrangements with members of the Berkley family, such that the Berkley family can, subject to certain exceptions, determine the voting of the Company shares held by MSI, including with respect to an extraordinary transaction, other than one expected to result in a business combination that would give rise to a significant, direct and irresolvable conflict of interest for MSI.
•the need for advance notice in order to raise business or make nominations at stockholders' meetings.
Management's Discussion & Analysis (MD&A)
New heading “Favorable prior year development (net of additional and return premiums) was $3 million in 2025.”
New heading “Results of Operations for the Years Ended December 31, 2025 and 2024”
Removed heading “Unfavorable prior year development (net of additional and return premiums) was $36 million in 2022.”
Removed heading “Results of Operations for the Years Ended December 31, 2023 and 2022”
Largest changes
“The Company reported net income of $1,756 million in 2024 and $1,381 million in 2023. The $375 million increase in net income reflected an after-tax increase in net investment income of $217 million primarily due to higher interest rates, a larger fixed maturity securities portfolio and investment income associated with our Argentine inflation-linked securities, an after-tax increase in foreign currency gains of $65 million mainly due to strengthening of the U.S. …”see in full comparison
“The adverse other liability development was driven mainly by umbrella and excess liability claims, and to a lesser degree from the Company’s primary surplus lines casualty business. The umbrella and excess liability development included a significant component stemming from underlying auto exposures. The other liability development was concentrated in accident years 2017 through 2022. The adverse auto liability development was concentrated in accident years 2021 through 2023. …”see in full comparison
“The unfavorable development on the 2015 through 2019 accident years was concentrated in the general liability and professional liability, including medical professional, lines of business, as well as auto liability. The development was driven by a larger than expected number of large losses reported. The Company believes social inflation is contributing to an increase in the frequency of large losses for these accident years. …”see in full comparison
“Net investment income increased 27% to $1,333 million in 2024 from $1,053 million in 2023 due primarily to a $331 million increase in income from fixed maturity securities mainly driven by higher interest rates, a larger fixed maturity securities portfolio and investment income associated with our Argentine inflation-linked securities (see below for further discussion), partially offset by a $28 million decrease in income from investment funds primarily due to financial service funds, a $12 million decrease in real estate, a $7 million decrease from equity securities and a $4 million increase …”see in full comparison
“Unfavorable prior year development (net of additional and return premiums) was $36 million in 2022.”see in full comparison
“Favorable prior year development (net of additional and return premiums) was $3 million in 2025.”see in full comparison
Full comparison: every changed paragraph (97)
W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property and casualty business: Insurance and Reinsurance & Monoline Excess. Our decentralized structure provides us with the flexibility to respond quickly and efficiently to local or specific market conditions and to pursue specialty business niches. It also allows us to be closer to our customers in order to better understand their individual needs and risk characteristics. While providing our business unitsbusinesses with certain operating autonomy, our structure allows us to capitalize on the benefits of economies of scale through centralized capital, investment, reinsurance, enterprise risk management, and actuarial, financial and corporate compliance support. The Company’s primary sources of revenues and earnings are its insurance operations and its investments.
Commencing with the first quarter of 2024, the Company reclassified a program management business from the Insurance segment to the Reinsurance & Monoline Excess segment. The reclassified business is a program management business offering support on a nationwide basis for commercial casualty and property program administrators. Reclassifications have been made to the Company's 2023 and 2022 financial information to conform with this presentation.
On June 12, 2024, the Company announced that its Board of Directors approved a 3-for-2 common stock split which was paid in the form of a stock dividend to holders of record as of June 24, 2024. The additional shares were issued on July 10, 2024. Shares outstanding and per share amounts in this Form 10-K reflect such 3-for-2 common stock split.
The following presents a discussion of accounting policies and estimates relating to reserves for losses and loss expenses, assumed reinsurance premiumspremiums, allowance for expected credit losses and other-than-temporaryfair impairmentsvalue ofmeasurements on investments. Management believes these policies and estimates are the most critical to its operations and require the most difficult, subjective and complex judgments.
Favorable prior year development (net of additional and return premiums) was $3 million in 2025.
Insurance – Reserves for the Insurance segment developed unfavorably by $44 million in 2025 (net of additional and return premiums). The adverse development was driven by the other liability and auto liability lines of business, and was partially offset by favorable development for short tail lines of business, auto physical damage, professional liability and workers’ compensation.
The adverse other liability development was driven mainly by umbrella and excess liability claims, and to a lesser degree from the Company’s primary surplus lines casualty business. The umbrella and excess liability development included a significant component stemming from underlying auto exposures. The other liability development was concentrated in accident years 2017 through 2022. The adverse auto liability development was concentrated in accident years 2021 through 2023. The Company believes that auto-related claims are being particularly impacted by social inflation, which is contributing to an increase in the frequency of large losses beyond expectations. An increase in the frequency of litigated claims is also driving up both indemnity and loss adjustment expense in these lines of business beyond expectations. Social inflation can include higher settlement demands from plaintiffs, use of tactics such as litigation funding by the plaintiffs’ bar, negative public sentiment towards large businesses and corporations, and erosion of tort reforms, among others.
The favorable development for both short tail lines of business and auto physical damage related to the 2024 accident year, and resulted from favorable settlements of both catastrophe and non-catastrophe property claims below our expectations. The favorable professional liability development related mainly to accident years 2022 and 2023, and was driven by lower reported claim frequency and incurred losses than expected. The favorable workers’ compensation development was mainly related to accident years 2023 and 2024, and resulted from a continuation of favorable reported claim frequency below expectations, although the magnitude of the favorable development in this line has moderated from levels seen in previous years.
Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed favorably by $47 million in 2025 (net of additional and return premiums). The favorable development was driven mainly by property and workers’ compensation business, and was partially offset by adverse development in casualty reinsurance assumed. Similar to the Insurance segment, the favorable property development related primarily to the 2024 accident year and resulted from favorable claims settlements below our expectations. The favorable workers’ compensation development was driven by continued lower claim frequency and reported losses relative to expectations, and was spread across many prior accident years, mainly 2017 through 2024. The unfavorable development for casualty reinsurance was concentrated mainly in accident years 2019 through 2023 and was associated primarily with non-proportional assumed reinsurance.
The ultimate net impact of COVID-19 on the Company's reserves remains uncertain. As of December 31, 2024, the Company had recognized losses for COVID-19-related claims activity, net of reinsurance, of approximately $381 million, of which $326 million relates to the Insurance segment and $55 million relates to the Reinsurance & Monoline Excess segment. Such $381 million of COVID-19-related losses included $379 million of reported losses and $2 million of IBNR.
Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed favorably by $12 million in 2024 (net of additional and return premiums). The favorable development was driven mainly by excess workers’ compensation business, partially offset by adverse development in the non-proportional reinsurance assumed liability line of business. The favorable excess workers’ compensation development was driven by continued lower claim frequency and reported losses relative to expectations, and to favorable claim settlements spread across many prior accident years. The unfavorable development for non-proportional reinsurance was concentrated mainly in accident years 2015 through 2019 and was associated primarily with our U.S. and U.K. excess general liability reinsurance businesses, including coverage for cedants insuring construction projects.
Insurance – Reserves for the Insurance segment developed unfavorably by $21 million in 2023 (net of additional and return premiums). The unfavorable development for the segment was concentrated in the early part of the year. A key driver of the unfavorable development early in 2023 was property catastrophe losses related to 2022 events which were still being adjusted and settled during the early part of 2023. In particular, losses related to U.S. winter storms which occurred during the month of December 2022 were a significant contributor to the development, as information gathering and evaluation of many of these claims were still ongoing into the new year.
Unfavorable prior year development (net of additional and return premiums) was $36 million in 2022.
Insurance – Reserves for the Insurance segment developed unfavorably by $41 million in 2022 (net of additional and return premiums). The unfavorable development in the segment primarily related to COVID-19 losses at two businesses. These businesses wrote policies providing coverage for event cancellation and film production delay which were heavily impacted by losses directly caused by the COVID-19 pandemic. Most of this COVID-19 related unfavorable development emerged during the third quarter as a result of settlements of claims at values higher than our expectations. However, the Company believes that as a result of these settlements the remaining level of uncertainty around the ultimate value of its known COVID-19 claims has been significantly reduced.
The unfavorable development mentioned above also includes favorable prior year development for the Insurance segment primarily attributable to the 2020 and 2021 accident years and unfavorable development on the 2015 through 2019 accident years. The favorable development on the 2020 and 2021 accident years was concentrated in certain casualty lines of business including general liability, professional liability, and workers’ compensation. The Company experienced lower reported claim frequency in these lines of business during 2020 and 2021 relative to historical averages, and continued to experience lower reported incurred losses relative to its expectations for these accident years as they developed during 2022. These trends began in 2020 and we believe were caused by the impacts of the COVID-19 pandemic, including for example, lockdowns, reduced driving/traffic and increased work from home. Due to the uncertainty regarding the ultimate impacts of the pandemic on accident years 2020 and 2021 incurred losses, the Company was cautious in reacting to these lower trends in setting and updating its loss ratio estimates for these years. As these accident years have continued to mature, the Company has continued to recognize some of the favorable reported experience in its ultimate loss estimates made during 2022.
The unfavorable development on the 2015 through 2019 accident years was concentrated in the general liability and professional liability, including medical professional, lines of business, as well as auto liability. The development was driven by a larger than expected number of large losses reported. The Company believes social inflation is contributing to an increase in the frequency of large losses for these accident years. Social inflation can include higher settlement demands from plaintiffs, use of tactics such as litigation funding by the plaintiffs’ bar, negative public sentiment towards large businesses and corporations, and erosion of tort reforms, among others.
Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed favorably by $5 million in 2022 (net of additional and return premiums). The overall favorable development for the segment was driven mainly by favorable development in excess workers compensation, substantially offset by unfavorable development in the professional liability, non-proportional reinsurance assumed liability, and commercial auto liability lines of business. The favorable excess workers’ compensation development was spread across most prior accident years, including 2012 and prior years, and was driven by a review of the Company’s claim reporting patterns as well as a number of favorable claim settlements relative to expectations. The unfavorable professional liability and non-proportional reinsurance assumed liability development was concentrated mainly in accident years 2016 through 2018 and was associated primarily with our U.S. assumed reinsurance business and related to accounts insuring construction projects and professional liability exposures. The unfavorable development for commercial auto liability was concentrated in the 2021 accident year and related to commercial auto program business.
As of December 31, 2024,2025, the Company has recorded an allowance for expected credit losses on fixed maturity securities of $0.7$0.1 million. The Company has evaluated the remaining fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due.
Results of Operations for the Years Ended December 31, 2025 and 2024
Following is a summary of gross and net premiums written, net premiums earned, loss ratios (losses and loss expenses incurred expressed as a percentage of net premiums earned), expense ratios (policy acquisition and insurance operating expenses expressed as a percentage of net premiums earned) and GAAP combined ratios (sum of loss ratio and expense ratio) for each of our business segments for the years ended December 31, 2025 and 2024. The GAAP combined ratio represents a measure of underwriting profitability, excluding investment income. A GAAP combined ratio in excess of 100 indicates an underwriting loss; a number below 100 indicates an underwriting profit.
Net Income to Common Stockholders. The following table presents the Company’s net income to common stockholders and net income per diluted share for the years ended December 31, 2025 and 2024.
The Company reported net income of $1,779 million in 2025 and $1,756 million in 2024. The $23 million increase in net income reflected an after-tax increase in net investment income of $75 million primarily due to a larger fixed maturity securities portfolio and increased investment income from investment funds, an after-tax increase in underwriting income of $29 million mainly due to growth in premium rates, a reduction of $18 million in tax expense due to a change in the effective tax rate, an after-tax increase in net investment gains of $11 million, an after-tax increase in profits from non-insurance businesses of $8 million and an after-tax increase in profit from insurance service businesses of $5 million, partially offset by an after-tax increase in foreign currency losses of $94 million due to the U.S. dollar weakening against other major currencies in 2025, an after-tax increase in corporate expenses of $22 million and an after-tax decrease in income of $7 million related to minority interests. The number of weighted average diluted shares decreased 3.4 million for 2025 compared to 2024, mainly reflecting shares repurchased in 2025 and 2024.
Premiums. Gross premiums written were $15,105 million in 2025, an increase of 6% from $14,211 million in 2024. The increase was due to the growth in the Insurance segment of $803 million and in the Reinsurance & Monoline Excess segment of $91 million. Approximately 81% of premiums expiring in 2025 and 2024 were renewed.
Average renewal premium rates (per unit of exposure) for insurance and facultative reinsurance increased 6.7% in 2025 and 6.9% in 2024. Average renewal premium rates (per unit of exposure) for insurance and facultative reinsurance excluding workers' compensation increased 7.6% in 2025 and 7.9% in 2024.
A summary of gross premiums written in 2025 compared with 2024 by line of business within each business segment follows:
•Insurance gross premiums increased 6% to $13,465 million in 2025 from $12,662 million in 2024. Gross premiums increased $365 million (11%) for short-tail lines, $264 million (5%) for other liability, $110 million (7%) for auto, $44 million (3%) for workers' compensation and $20 million (1%) for professional liability.
•Reinsurance & Monoline Excess gross premiums increased 6% to $1,640 million in 2025 from $1,549 million in 2024. Gross premiums written increased $63 million (13%) for property lines and $28 million (9%) for monoline excess, partially offset by a reduction of $0.2 million (less than 1%) for casualty lines.
Net premiums written were $12,711 million in 2025, an increase of 6% from $11,972 million in 2024. Ceded reinsurance premiums as a percentage of gross written premiums was 16% in both 2025 and 2024.
Premiums earned increased 8% to $12,447 million in 2025 from $11,548 million in 2024. Insurance premiums (including the impact of rate changes) are generally earned evenly over the policy term, and accordingly recent rate increases will be earned over the upcoming quarters. Premiums earned in 2025 are related to business written during both 2025 and 2024. Audit premiums were $333 million in 2025 compared with $350 million in 2024.
Net Investment Income. Following is a summary of net investment income (loss) for the years ended December 31, 2025 and 2024:
Net investment income increased 7% to $1,429 million in 2025 from $1,333 million in 2024 due primarily to a $47 million increase in income from fixed maturity securities mainly driven by a larger fixed maturity securities portfolio, a $39 million increase in income from investment funds primarily due to transportation funds and financial services funds, a $5 million increase in arbitrage trading account, a $5 million increase in real estate and a $1 million increase from equity securities, partially offset by a $1 million increase in investment expenses. Investment funds are reported on a one quarter lag. The average annualized yield for fixed maturity securities was 4.9% in 2025 and 5.3% in 2024. The average annualized yield for fixed maturity securities excluding Argentine inflation-linked securities was 4.7% in 2025 and 4.5% in 2024. The effective duration of the fixed maturity portfolio was 3.0 years at December 31, 2025 and 2.6 years at December 31, 2024. Average invested assets, at cost (including cash and cash equivalents), were $31.6 billion in 2025, up 9% from $28.9 billion in 2024.
Insurance Service Fees. The Company earns fees from an insurance distribution business, a third-party administrator, and as a servicing carrier of workers' compensation assigned risk plans for certain states. Insurance service fees increased to $119 million in 2025 from $109 million in 2024, mainly due to organic growth within the business.
Net Realized and Unrealized Gains on Investments. The Company buys and sells securities and other investment assets on a regular basis in order to maximize its total return on investments. Decisions to sell securities and other investment assets are based on management’s view of the underlying fundamentals of specific investments as well as management’s expectations regarding interest rates, credit spreads, currency values and general economic conditions. Net realized and unrealized gains on investments were $131 million in 2025 compared with $80 million in 2024. The gains of $131 million in 2025 reflected an increase in unrealized gains on equity securities of $97 million and net realized gains on investments of $34 million. The gains of $80 million in 2024 reflected an increase in unrealized gains on equity securities of $121 million, partially offset by net realized losses on investments of $41 million.
Change in Allowance for Expected Credit Losses on Investments. Based on credit factors, the allowance for expected credit losses is increased or decreased depending on the percentage of unrealized loss relative to amortized cost by security, changes in rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. The pre-tax change in allowance for expected credit losses on investments reflected in net investment gains, decreased by $2 million ($1 million after-tax) in 2025 reflecting improved pricing related to fixed maturity securities and the redemption of one loan in the loan receivable portfolio, and $38 million ($30 million after-tax) in 2024 due to improved pricing associated with foreign government securities and corporate securities.
Revenues from Non-Insurance Businesses. Revenues from non-insurance businesses were derived from businesses engaged in the distribution of promotional merchandise, world-wide textile solutions, and aviation-related businesses that provide services to aviation markets, including (i) the distribution, manufacturing, repair and overhaul of aircraft parts and components, (ii) the sale of new and used aircraft, and (iii) avionics, fuel, maintenance, storage and charter services. Revenues from non-insurance businesses increased to $577 million in 2025 from $528 million in 2024 mainly due to the aviation-related business, partially offset by a reduction in promotional merchandise.
Losses and Loss Expenses. Losses and loss expenses increased to $7,772 million in 2025 from $7,132 million in 2024. The consolidated loss ratio was 62.4% in 2025 and 61.8% in 2024. Catastrophe losses, net of reinsurance recoveries, were $336 million in 2025, with the largest contributors being California wildfire losses and frequency of severe storms, and $298 million in 2024, driven by heightened frequency of severe catastrophe events, with Hurricanes Helene and Milton having the largest impacts. Favorable prior year reserve development (net of premium offsets) was $3 million in 2025 and $4 million in 2024 (refer to Note 13 of our consolidated financial statements for more detail). The loss ratio excluding catastrophe losses and prior year reserve development increased 0.6 points to 59.8% in 2025 from 59.2% in 2024.
A summary of loss ratios in 2025 compared with 2024 by business segment follows:
•Insurance - The loss ratio was 63.5% in 2025 and 62.8% in 2024. Catastrophe losses were $260 million in 2025 compared with $227 million in 2024. Adverse prior year reserve development was $44 million in 2025 and $8 million in 2024. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.2 points to 60.7% in 2025 from 60.5% in 2024.
•Reinsurance & Monoline Excess - The loss ratio was 54.6% in 2025 and 54.7% in 2024. Catastrophe losses were $76 million in 2025 compared with $71 million in 2024. Favorable prior year reserve development was $47 million in 2025 and $12 million in 2024. The loss ratio excluding catastrophe losses and prior year reserve development increased 2.1 points to 52.7% in 2025 from 50.6% in 2024.
Policy acquisition and insurance operating expenses are comprised of commissions paid to agents and brokers, premium taxes and other assessments and internal underwriting costs. Policy acquisition and insurance operating expenses increased 7% and net premiums earned increased 8% from 2024. The expense ratio (policy acquisition and insurance operating expenses expressed as a percentage of net premiums earned) decreased by 0.2 points to 28.3% in 2025 from 28.5% in 2024.
Service expenses, which represent the costs associated with the fee-based businesses, were $94 million in 2025 and $91 million in 2024.
Net foreign currency losses (gains) result from transactions denominated in a currency other than a businesses’ functional currency. Net foreign currency losses were $68 million in 2025 compared to gains of $52 million in 2024, primarily due to the U.S. dollar weakening against other major currencies in 2025.
Other costs and expenses represent general and administrative expenses of the parent company and other expenses not allocated to business segments, including the cost of certain long-term incentive plans and new business ventures. Other costs and expenses increased to $298 million in 2025 from $269 million in 2024, primarily due to higher compensation-related costs and new start-up operating unit expenses in 2025.
Expenses from Non-Insurance Businesses. Expenses from non-insurance businesses represent costs associated with businesses engaged in the distribution of promotional merchandise, world-wide textile solutions, and aviation-related businesses that include (i) cost of goods sold related to aircraft and products sold and services provided and (ii) general and administrative expenses. Expenses from non-insurance businesses increased to $552 million in 2025 from $513 million in 2024 mainly due to the aviation-related business, partially offset by a reduction in promotional merchandise.
Interest Expense. Interest expense was $127 million in both 2025 and 2024.
Income Taxes. The effective income tax rate was 21.7% in 2025 and 22.5% in 2024. The lower effective income tax rate for the year, as compared to 2024, was primarily due to an improved geographical mix of earnings and larger benefits attributable to equity-based compensation. See Note 16 of the Consolidated Financial Statements for a reconciliation of the income tax expense and the amounts computed by applying the Federal income tax rate of 21%.
The Company has not provided U.S. deferred income taxes on the undistributed earnings of approximately $585 million of its non-U.S. subsidiaries since these earnings are intended to be permanently reinvested in the non-U.S. subsidiaries. In the future, if such earnings were distributed, the Company projects that the incremental tax, if any, will be immaterial.
For years beginning after December 31, 2025, certain U.S. tax rates applied to international business will change. Specifically, increases to the Global Intangible Low Taxed Income and the Base Erosion and Anti-Abuse Tax rates will take effect but we do not expect this to have a meaningful impact on tax expenses. We are monitoring legislative developments and will continue to assess the potential financial implications.
Pursuant to the Inflation Reduction Act of 2022, a corporate alternative minimum tax on certain corporations was introduced. The tax is applicable for taxable years beginning after December 31, 2022 and imposes a 15% minimum tax on a corporation’s applicable financial statement income. While we were not subject to this tax in 2025, we continue to evaluate the overall impact of this tax legislation on our operations and U.S. federal income tax position. In addition, a 1% excise tax is now imposed on the value of corporate share repurchases, net of common share issuances. The tax is included in the cost of treasury stock acquired and was not material for 2025.
Further, the Company is monitoring the impact of the implementation of a global minimum tax rate of 15%, also known as Pillar Two, as introduced by the Organization for Economic Co-operation and Development (the "OECD"), which applied in some countries commencing in 2024. The 2025 impact on the Company was not material, as the Company mainly operates in jurisdictions with a statutory tax rate above 15%. We will continue to evaluate this tax legislation given the recent release of administrative guidance applicable to U.S. multinationals issued by the OECD.
The Bermuda Corporate Income Tax Act 2023 introduced an income tax based on a statutory tax rate of 15% on Bermuda businesses, subject to reductions for foreign tax credits effective for fiscal years beginning on or after January 1, 2025. The legislation did not have a material impact on our income tax position.
Following is a summary of gross and net premiums written, net premiums earned, loss ratios (losses and loss expenses incurred expressed as a percentage of net premiums earned), expense ratios (policy acquisition and insurance operating expenses expressed as a percentage of net premiums earned) and GAAP combined ratios (sum of loss ratio and expense ratio) for each of our business segments for the years ended December 31, 2024 and 2023. The GAAP combined ratio represents a measure of underwriting profitability, excluding investment income. A GAAP combined ratio in excess of 100 indicates an underwriting loss; a number below 100 indicates an underwriting profit.
Net Income to Common Stockholders. The following table presents the Company’s net income to common stockholders and net income per diluted share for the years ended December 31, 2024 and 2023.
The Company reported net income of $1,756 million in 2024 and $1,381 million in 2023. The $375 million increase in net income reflected an after-tax increase in net investment income of $217 million primarily due to higher interest rates, a larger fixed maturity securities portfolio and investment income associated with our Argentine inflation-linked securities, an after-tax increase in foreign currency gains of $65 million mainly due to strengthening of the U.S. dollar against other currencies in 2024, an after-tax increase in net investment gains of $55 million due to change in market value of equity securities and impairment loss recognized on a real estate investment in 2023, an after-tax increase in underwriting income of $37 million mainly due to growth in premium rates, an after-tax reduction in corporate expenses of $15 million, an after-tax increase of $4 million in noncontrolling interests, an after-tax increase in profits from non-insurance businesses of $3 million and an after-tax increase in profit from insurance service businesses of $3 million, partially offset by an increase of $24 million in tax expense due to a change in the effective tax rate. The number of weighted average diluted shares decreased by 6.7 million for 2024 compared to 2023, mainly reflecting shares repurchased in 2024.
Premiums. Gross premiums written were $14,211 million in 2024, an increase of 10% from $12,972 million in 2023. The increase was due to the growth in the Insurance segment of $1,201 million and in the Reinsurance & Monoline Excess segment of $38 million. Approximately 81% of premiums expiring in 2024 and 2023 were renewed.
Average renewal premium rates (per unit of exposure) for insurance and facultative reinsurance increased 6.9% in 2024 and 7.1% in 2023. Average renewal premium rates (per unit of exposure) for insurance and facultative reinsurance excluding workers' compensation increased 7.9% in 2024 and 8.1% in 2023.
A summary of gross premiums written in 2024 compared with 2023 by line of business within each business segment follows:
•Insurance gross premiums increased 10% to $12,662 million in 2024 from $11,461 million in 2023. Gross premiums increased $509 million (11%) for other liability, $476 million (17%) for short-tail lines, $179 million (12%) for auto, $21 million (1%) for professional liability and $16 million (1%) for workers' compensation.
•Reinsurance & Monoline Excess gross premiums increased 3% to $1,549 million in 2024 from $1,511 million in 2023. Gross premiums written increased $68 million (16%) for property lines and $28 million (10%) for monoline excess, partially offset by a reduction of $58 million (7%) for casualty lines.
Net premiums written were $11,972 million in 2024, an increase of 9% from $10,954 million in 2023. Ceded reinsurance premiums as a percentage of gross written premiums were 16% in both 2024 and 2023.
What changed in the latest 10-Q
Risk Factors
There have been no material changes from the risk factors previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
No wording changes found in this section.
Full comparison: every changed paragraph (0)
Management's Discussion & Analysis (MD&A)
New heading “Results of Operations for the Three Months Ended June 30, 2026 and 2025”
New heading “Business Segment Results”
Largest changes
“Results of Operations for the Three Months Ended June 30, 2026 and 2025”see in full comparison
“Net Realized and Unrealized Gains (Losses) on Investments. The Company buys and sells securities and other investment assets on a regular basis in order to maximize its total return on investments. Decisions to sell securities and other investment assets are based on management’s view of the underlying fundamentals of specific investments as well as management’s expectations regarding interest rates, credit spreads, currency values and general economic conditions. Net realized and unrealized losses on investments were $55 million in 2026 compared with gains of $31 million in 2025. …”see in full comparison
“The Company reported net income to common stockholders of $452 million in 2026 compared to $401 million in 2025. The $51 million increase in net income was primarily due to an after-tax increase in underwriting income of $45 million due to lower catastrophe losses in 2026, an after-tax decrease in foreign currency losses of $42 million due to the U.S. …”see in full comparison
“Net investment income increased 10% to $419 million in 2026 from $379 million in 2025 due primarily to a $38 million increase in income from fixed maturity securities mainly driven by a larger fixed maturity securities portfolio, a $6 million increase in equity securities, a $2 million increase in income from investment funds and a $1 million decrease in loss from real estate, partially offset by a $5 million decrease in arbitrage trading account and a $2 million increase in investment expenses. Investment funds are reported on a one quarter lag. …”see in full comparison
The adverse other liability development was driven mainly by umbrella and excess liability claims, and to a lesser extent from the Company’s primary surplus lines casualty business. The other liability development was concentrated in accident years 2019 through 2023. The umbrella and excess liability development included a significant component stemming from underlying auto exposures. The Company believes thatsee in full comparisonauto relatedauto-related claims are being particularly impacted by socialinflation.inflation, which is contributing to an increase in the frequency of large losses beyond expectations. An increase in the frequency of litigated claims is also driving up both indemnity and loss adjustment expense costs in these lines of business beyond expectations.
Full comparison: every changed paragraph (83)
Our net reserves for losses and loss expenses of approximately $19$20 billion as of MarchJune 31,30, 2026 relate to multiple accident years. Therefore, the impact of changes in frequency or severity for more than one accident year could be higher or lower than the amounts reflected above. The impact of such changes would likely be manifested gradually over the course of many years, as the magnitude of the changes became evident.
Approximately $3.4 billion, or 17.6%,17.3%, of the Company’s net loss reserves as of MarchJune 31,30, 2026 relate to the Reinsurance & Monoline Excess segment. There is a higher degree of uncertainty and greater variability regarding estimates of excess workers' compensation and assumed reinsurance loss reserves, which predominantly comprise these reserves. In the case of excess workers’ compensation, our policies generally attach at $1 million or higher. The claims which reach our layer therefore tend to involve the most serious injuries and many remain open for the lifetime of the claimant, which extends the claim settlement tail. These claims also occur less frequently but tend to be larger than primary claims, which increases claim variability. In the case of assumed reinsurancereinsurance, our loss reserve estimates are based, in part, upon information received from ceding companies. If information received from ceding companies is not timely or correct, the Company’s estimate of ultimate losses may not be accurate. Furthermore, due to delayed reporting of claim information by ceding companies, the claim settlement tail for assumed reinsurance is also extended. Management considers the impact of delayed reporting and the extended tail in its selection of loss development factors for these lines of business.
___________ (1) Reserves for workers’ compensation and Reinsurance & Monoline Excess are net of an aggregate net discount of $425$434 million and $420 million as of MarchJune 31,30, 2026 and December 31, 2025, respectively.
Net prior year development (i.e., the sum of prior year reserve changes and prior year earned premiums changes) for the threesix months ended MarchJune 31,30, 2026 and 2025 are as follows:
During the threesix months ended MarchJune 31,30, 2026, favorable prior year development (net of additional and return premiums) of $1$3 million included $9$10 million of favorable prior year development for the Reinsurance & Monoline Excess segment partially offset by $8$7 million of adverse prior year development for the Insurance segment.
For the Insurance segment, the development during the firstsix quartermonths of 2026 resulted primarily from favorable development for short-tailshort linestail-lines of business which was offset by adverse development for other liability and auto liability. The favorable development for short-tail lines of business during the six months of 2026 related to the 2025 accident yearyear, and resulted from favorable settlements of both catastrophe and non-catastrophe property claims below our expectations. In addition, auto physical damage experienced favorable prior year development during the first quarter of 2026, also related to favorable claim settlements from the 2025 accident year below our expectations.
The adverse other liability development was driven mainly by umbrella and excess liability claims, and to a lesser extent from the Company’s primary surplus lines casualty business. The other liability development was concentrated in accident years 2019 through 2023. The umbrella and excess liability development included a significant component stemming from underlying auto exposures. The Company believes that auto relatedauto-related claims are being particularly impacted by social inflation.inflation, which is contributing to an increase in the frequency of large losses beyond expectations. An increase in the frequency of litigated claims is also driving up both indemnity and loss adjustment expense costs in these lines of business beyond expectations.
For the Reinsurance & Monoline Excess segment, the favorable development during the firstsix quartermonths of 2026 was driven mainly by favorable development in non-proportional reinsurance assumed property, partially offset by adverse development in the non-proportional reinsurance assumed liability line of business. Similarly to the Insurance segment, the favorable property reinsurance development was driven by favorable claim settlements, below our expectations, related to the 2025 accident year. The unfavorable development for non-proportional reinsurance assumed liability was associated primarily with our U.S. assumed reinsurance businesses, and was concentrated mainly in accident years 20192020 through 2023.
During the threesix months ended MarchJune 31,30, 2025, favorable prior year development (net of additional and return premiums) of $1 million included $12$20 million of favorable prior year development for the Reinsurance & Monoline Excess segment largely offset by $11$19 million of adverse prior year development for the Insurance segment.
For the Insurance segment, the adverse development during the first quarterhalf of 2025 was driven primarily by excess other liability,liability includingand umbrella,commercial auto liability and was partially offset by favorable development for short-tailshort tail lines of business, including commercial property and commercial auto physical damage. The adverse excess other liability, including umbrella,liability development was concentrateddriven inprimarily accidentby yearsumbrella 2018and throughother 2022,claims attaching excess of primary policy limits and included a significant component stemming from underlying auto exposures. A secondary driver of the other liability development related to the Company’s excess and surplus lines casualty business. The other liability development was concentrated in accident years 2017 through 2022. The adverse commercial auto liability development was concentrated in accident years 2021 and 2022. The Company believes that auto-related claims are being particularly impacted by social inflation, which is contributing to an increase in the frequency of large losses beyond expectations. Social inflation can include higher settlement demands from plaintiffs, use of tactics such as litigation funding by the plaintiffs’ bar, negative public sentiment towards large businesses and corporations, and erosion of tort reforms, among others. The favorable development for short-tail property lines of business during the first quarter of 2025 related to the 2024 accident year, and resulted from favorable settlements of both catastrophe and non-catastrophe claims below our expectations.
The favorable development for short tail property lines of business during the first half of 2025 related to the 2024 accident year, and resulted from favorable settlements of both catastrophe and non-catastrophe claims below our expectations.
For the Reinsurance & Monoline Excess segment, the favorable development during the first quarterhalf of 2025 was driven mainly by favorable development in non-proportional reinsurance assumed property, partially offset by adverse development in the non-proportional reinsurancefor assumed liability line of business.property. Similar to the Insurance segment, the favorable property reinsurance development was driven by favorable claim settlements, below our expectations, related mainly to the 2024 accident year. The unfavorable development for non-proportional reinsurance assumed liability was associated primarily with our U.S. assumed reinsurance businesses, and was concentrated mainly in accident years 2018 through 2021.
Reserve Discount. The Company discounts its liabilities for certain workers’ compensation reserves. The amount of workers’ compensation reserves that were discounted was $1,412$1,436 million and $1,400 million at MarchJune 31,30, 2026 and December 31, 2025, respectively. The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $425$434 million and $420 million at MarchJune 31,30, 2026 and December 31, 2025, respectively. At MarchJune 31,30, 2026, discount rates by year ranged from 0.7% to 6.5%, with a weighted average discount rate of 3.6%.
Substantially all of the workers’ compensation discount (97% of total discounted reserves at MarchJune 31,30, 2026) relates to excess workers’ compensation reserves. In order to properly match loss expenses with income earned on investment securities supporting the liabilities, reserves for excess workers’ compensation business are discounted using risk-free discount rates determined by reference to the U.S. Treasury yield curve. These rates are determined annually based on the weighted average rate for the period. Once established, no adjustments are made to the discount rate for that period, and any increases or decreases in loss reserves in subsequent years are discounted at the same rate, without regard to when any such adjustments are recognized. The expected loss and loss expense payout patterns subject to discounting are derived from the Company’s loss payout experience.
The Company also discounts reserves for certain other long-duration workers’ compensation reserves (representing approximately 3% of total discounted reserves at MarchJune 31,30, 2026), including reserves for quota share reinsurance and reserves related to losses regarding occupational lung disease. These reserves are discounted at statutory rates permitted by the Department of Insurance of the State of Delaware.
Assumed Reinsurance Premiums. The Company estimates the amount of assumed reinsurance premiums that it will receive under treaty reinsurance agreements at the inception of the contracts. These premium estimates are revised as the actual amount of assumed premiums is reported to the Company by the ceding companies. As estimates of assumed premiums are made or revised, the related amount of earned premiums, commissions and incurred losses associated with those premiums are recorded. Estimated assumed premiums receivable were approximately $55$48 million at MarchJune 31,30, 2026 and $54 million at December 31, 2025. The assumed premium estimates are based upon terms set forth in reinsurance agreements, information received from ceding companies during the underwriting and negotiation of agreements, reports received from ceding companies and discussions and correspondence with reinsurance intermediaries. The Company also considers its own view of market conditions, economic trends and experience with similar lines of business. These premium estimates represent management’s best estimate of the ultimate amount of premiums to be received under its assumed reinsurance agreements.
A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at MarchJune 31,30, 2026 is presented in the table below:
As of MarchJune 31,30, 2026, the Company recorded an allowance for expected credit losses on fixed maturity securities of $0.3$0.4 million. The Company has evaluated the remaining fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due.
Loans Receivable – For loans receivable, the Company estimates an allowance for expected credit losses based on relevant information about past events, including historical loss experience, current conditions and forecasts that affect the expected collectability of the amortized cost of the financial asset. The allowance for expected credit losses is presented as a reduction to amortized cost of the financial asset in the consolidated balance sheet and changes to the estimate for expected credit losses are recognized through net investment gains (losses). Loans receivable are reported net of an allowance for expected credit losses of $0.1 millionnone and $0.2 million as of MarchJune 31,30, 2026 and December 31, 2025, respectively.
The following is a summary of pricing sources for the Company's fixed maturity securities available for sale as of MarchJune 31,30, 2026:
Results of Operations for the ThreeSix Months Ended MarchJune 31,30, 2026 and 2025
Following is a summary of gross and net premiums written, net premiums earned, loss ratios (losses and loss expenses incurred expressed as a percentage of net premiums earned), expense ratios (underwriting expenses expressed as a percentage of net premiums earned) and GAAP combined ratios (sum of loss ratio and expense ratio) for each of our business segments for the threesix months ended MarchJune 31,30, 2026 and 2025. The GAAP combined ratio represents a measure of underwriting profitability, excluding investment income. A GAAP combined ratio in excess of 100 indicates an underwriting loss; a number below 100 indicates an underwriting profit.
Net Income to Common Stockholders. The following table presents the Company’s net income to common stockholders and net income per diluted share for the threesix months ended MarchJune 31,30, 2026 and 2025:
The Company reported net income to common stockholders of $515$967 million in 2026 compared to $418$819 million in 2025. The $97$148 million increase in net income was primarily due to an after-tax increase in foreign currency gains of $37$73 million due to the U.S. dollar strengthening against other major currencies in 2026, an after-tax increase of $68 million in net investment income primarily due to a larger fixed maturity securities portfolio and increased investment income from investment funds, an after-tax increase in underwriting income of $60 million mainly due to lower catastrophe losses in 2026, a $33$43 million decrease in tax expense due to the repeal of undiscounted property-casualty loss deductions and special estimated payments formerly available under Internal Revenue Code Section 847, partially offset by deferred tax charges in the United Kingdom during the quarter, an after-tax increase in foreign currency gains of $30 million due to the U.S. dollar strengthening against other major currencies in 2026,and an after-tax increase in profits from non-insurance businesses of $15 million and an after-tax increase in underwriting income of $14$19 million, partially offset by an after-tax increase in net investment losses of $27$96 million mainly due to a change in unrealized lossesgains on equity securities, an after-tax increase in corporate expenses of $4$14 million, an after-tax decrease of $3 million in profit from insurance service businesses and an after-tax decrease in income of $1$2 million related to minority interest. The number of weighted average diluted shares decreased 5.06.8 million for 2026 compared to 2025, mainly reflecting shares repurchased in 2026 and 2025.
Premiums. Gross premiums written were $3,786$7,930 million in 2026, an increase of 3%3.5% from $3,684$7,662 million in 2025. The increase was due to a $145$341 million increase in the Insurance segment, partially offset by a $43$73 million decrease in the Reinsurance & Monoline Excess segment. Approximately 81% of premiums expiring in 20262026, and 80% of premiums expiring in 2025 were renewed.
•Insurance - gross premiums increased 5% to $3,362$7,165 million in 2026 from $3,217$6,824 million in 2025. Gross premiums increased $75$171 million (9%) for short-tail lines, $31$71 million (2%) for other liability, $25 million (6%) for auto, and $24 million (7%10%) for professional liability, $68 million (3%) for other liability and $34 million (4%) for auto, partially offset by a reduction of $10$3 million (3%1%) for workers' compensation.
Net premiums written were $3,174$6,605 million in 2026, an increase of 1%2% from $3,133$6,485 million in 2025. Ceded reinsurance premiums as a percentage of gross written premiums waswere 16%17% and 15% in 2026 and 2025, respectively.
Net Investment Income. Following is a summary of net investment income for the threesix months ended MarchJune 31,30, 2026 and 2025:
Net investment income increased 12%11% to $404$823 million in 2026 from $360$740 million in 2025 due primarily to a $33$71 million increase in income from fixed maturity securities mainly driven by a larger fixed maturity securities portfolio, a $13$14 million increase in income from investment funds primarily due to energy funds and real estate funds and aan $5$11 million increase in equity securities, partially offset by aan $6$11 million decrease in arbitrage trading account andaccount, a $1 million decrease in real estate.estate and a $1 million increase in investment expenses. Investment funds are reported on a one quarter lag. The average annualized yield for fixed maturity securities was 4.9%5.0% in both 2026 and 4.9% in 2025. The effective duration of the fixed maturity portfolio was 3.13.2 years at MarchJune 31,30, 2026 and 3.0 years at December 31, 2025. Average invested assets, at cost (including cash and cash equivalents), were $33.2$33.5 billion in 2026, up 9%8% from $30.5$30.9 billion in 2025.
Net Realized and Unrealized Gains (Losses) on Investments. The Company buys and sells securities and other investment assets on a regular basis in order to maximize its total return on investments. Decisions to sell securities and other investment assets are based on management’s view of the underlying fundamentals of specific investments as well as management’s expectations regarding interest rates, credit spreads, currency values and general economic conditions. Net realized and unrealized losses on investments were $16$71 million in 2026 compared with gains of $16$46 million in 2025. The losses of $16$71 million in 2026 reflected net realized losses on investments of $11$48 million and ana increasedecrease in unrealized lossesgains on equity securities of $5$23 million. The gains of $16$46 million in 2025 reflected an increase in unrealized gains on equity securities of $20$83 million, partially offset by net realized losses on investments of $4$37 million.
Change in Allowance for Expected Credit Losses on Investments. Based on credit factors, the allowance for expected credit losses is increased or decreased depending on the percentage of unrealized loss relative to amortized cost by security, changes in rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. The pre-tax change in allowance for expected credit losses on investments, which are reflected in net investment gains (losses), increased by $0.1$0.2 million ($0.1$0.2 million after-tax) in 2026 due to a decrease in fair value of one investment in fixed maturity securities, and decreased by $0.6$1 million ($0.5$0.8 million after-tax) in 2025 due toreflecting improved pricing related to fixed maturity securities.securities and the redemption of one loan in the loan receivable portfolio.
Revenues from Non-Insurance Businesses. Revenues from non-insurance businesses were derived from businesses engaged in the distribution of promotional merchandise, world-wide textile solutions and aviation-related businesses that provide services to aviation markets, including (i) the distribution, manufacturing, repair and overhaul of aircraft parts and components, (ii) the sale of new and used aircraft, and (iii) avionics, fuel, maintenance, storage and charter services. Revenues from non-insurance businesses were $157$291 million in 2026 and $129$258 million in 2025. The increase mainly relates to aviation-related business due to plane sales, partially offset by the reduction in commercial and residential textile business and promotional merchandise business.
Losses and Loss Expenses. Losses and loss expenses increased to $1,936$3,897 million in 2026 from $1,901$3,856 million in 2025. The consolidated loss ratio was 62.1%61.8% in 2026 and 63.1% in 2025. Catastrophe losses, net of reinsurance recoveries, were $76$138 million in 2026 primarily related to winter storms, compared to $111$210 million in 2025 mainlywith duethe tolargest contributors being California wildfire losses.losses and frequency of severe storms. Favorable prior year reserve development (net of premium offsets) was $3 million in 2026 and $1 million in both 2026 and 2025. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.3 points towas 59.7% in both 2026 from 59.4% inand 2025.
•Insurance - The loss ratio was 63.9%63.5% in 2026 and 63.9% in 2025. Catastrophe losses were $75$135 million in 2026 compared with $71$148 million in 2025. Adverse prior year reserve development was $8$7 million in 2026 and $11$19 million in 2025. The loss ratio excluding catastrophe losses and prior year reserve development increased 0.10.2 points to 60.9% in 2026 from 60.8%60.7% in 2025.
•Reinsurance & Monoline Excess - The loss ratio was 48.3%48.8% in 2026 and 57.7% in 2025. Catastrophe losses were $0.2$3 million in 2026 and $40$62 million in 2025. Favorable prior year reserve development was $9$10 million in 2026 and $12$20 million in 2025. The loss ratio excluding catastrophe losses and prior year reserve development increaseddecreased 1.12.3 points to 51.1%49.8% in 2026 from 50.0%52.1% in 2025.
Other Operating Costs and Expenses. Following is a summary of other operating costs and expenses for the threesix months ended MarchJune 31,30, 2026 and 2025:
Insurance service expenses, which represent the costs associated with the fee-based businesses, were $23$49 million in both 2026 and $48 million in 2025.
Expenses from Non-Insurance Businesses. Expenses from non-insurance businesses represent costs associated with businesses engaged in the distribution of promotional merchandise, world-wide textile solutions and aviation-related businesses that include (i) cost of goods sold related to aircraft and products sold and services provided, and (ii) general and administrative expenses. Expenses from non-insurance businesses were $136$259 million in 2026 compared to $126$249 million in 2025. The increase mainly relates to aviation-related business, partially offset by the reduction in commercial and residential textile business and promotional merchandise business.
Interest Expense. Interest expense was $32$63 million in both 2026 and in 2025.
Income Taxes. The effective income tax rate was 16.3%18.8% and 22.5%22.9% for the threesix months ended MarchJune 31,30, 2026 and 2025, respectively. The lower effective income tax rate for the threesix months ended MarchJune 31,30, 2026, as compared to the earlier period, was primarily due to the impact of the repeal of undiscounted property-casualty loss deductions and special estimated payments formerly available under Internal Revenue Code Section 847, partially offset by deferred tax charges in the United Kingdom.
In the United States, on July 4, 2025, the budget reconciliation package known as the “One Big Beautiful Bill Act” was signed into law. Changes resulting from the tax provisions thereunder did not have a material impact on the Company’s results from operations.
Results of Operations for the Three Months Ended June 30, 2026 and 2025
Business Segment Results
Following is a summary of gross and net premiums written, net premiums earned, loss ratios (losses and loss expenses incurred expressed as a percentage of net premiums earned), expense ratios (underwriting expenses expressed as a percentage of net premiums earned) and GAAP combined ratios (sum of loss ratio and expense ratio) for each of our business segments for the three months ended June 30, 2026 and 2025. The GAAP combined ratio represents a measure of underwriting profitability, excluding investment income. A GAAP combined ratio in excess of 100 indicates an underwriting loss; a number below 100 indicates an underwriting profit.
Net Income to Common Stockholders. The following table presents the Company’s net income to common stockholders and net income per diluted share for the three months ended June 30, 2026 and 2025:
The Company reported net income to common stockholders of $452 million in 2026 compared to $401 million in 2025. The $51 million increase in net income was primarily due to an after-tax increase in underwriting income of $45 million due to lower catastrophe losses in 2026, an after-tax decrease in foreign currency losses of $42 million due to the U.S. dollar weakening against other major currencies in 2026 to a lesser degree, an after-tax increase of $31 million in net investment income primarily due to a larger fixed maturity securities portfolio, a $10 million decrease in tax expense due to a change in the effective tax rate and an after-tax increase in profits from non-insurance businesses of $4 million, partially offset by an after-tax increase in net investment losses of $68 million mainly due to change in unrealized gains on equity securities, an after-tax increase in corporate expenses of $10 million and an after-tax decrease of $3 million in profit from insurance service businesses. The number of weighted average diluted shares decreased 8.6 million for 2026 compared to 2025, mainly reflecting shares repurchased in 2026 and 2025.
Premiums. Gross premiums written were $4,144 million in 2026, an increase of 4% from $3,978 million in 2025. The increase was due to a $196 million increase in the Insurance segment, partially offset by a $30 million decrease in the Reinsurance & Monoline Excess segment. Approximately 81% of premiums expiring in 2026, and 80% of premiums expiring in 2025 were renewed.
Average renewal premium rates (per unit of exposure) for insurance and facultative reinsurance increased 3.5% in 2026 and increased 3.8% excluding workers' compensation.
A summary of gross premiums written in 2026 compared with 2025 by line of business within each business segment follows:
•Insurance - gross premiums increased 5% to $3,803 million in 2026 from $3,607 million in 2025. Gross premiums increased $96 million (10%) for short-tail lines, $47 million (12%) for professional liability, $37 million (3%) for other liability, $10 million (2%) for auto and $6 million (2%) for workers' compensation.
•Reinsurance & Monoline Excess - gross premiums decreased by 8% to $341 million in 2026 from $371 million in 2025. Gross premiums decreased $25 million (13%) for casualty and $6 million (4%) for property, partially offset by an increase of $1 million (3%) for monoline excess.
Net premiums written were $3,430 million in 2026, an increase of 2.4% from $3,351 million in 2025. Ceded reinsurance premiums as a percentage of gross written premiums was 17% and 16% in 2026 and 2025, respectively.
Premiums earned increased 3% to $3,187 million in 2026 from $3,098 million in 2025. Insurance premiums (including the impact of rate changes) are generally earned evenly over the policy term, and accordingly, recent rate increases will be earned over the upcoming quarters. Premiums earned in 2026 are related to business written during both 2026 and 2025. Audit premiums were $65 million in 2026 compared with $86 million in 2025.
Net Investment Income. Following is a summary of net investment income for the three months ended June 30, 2026 and 2025:
Net investment income increased 10% to $419 million in 2026 from $379 million in 2025 due primarily to a $38 million increase in income from fixed maturity securities mainly driven by a larger fixed maturity securities portfolio, a $6 million increase in equity securities, a $2 million increase in income from investment funds and a $1 million decrease in loss from real estate, partially offset by a $5 million decrease in arbitrage trading account and a $2 million increase in investment expenses. Investment funds are reported on a one quarter lag. The average annualized yield for fixed maturity securities was 5.0% in 2026 and 4.9% in 2025. The effective duration of the fixed maturity portfolio was 3.2 years at June 30, 2026 and 3.0 years at December 31, 2025. Average invested assets, at cost (including cash and cash equivalents), were $33.8 billion in 2026, up 8% from $31.2 billion in 2025.
Insurance Service Fees. The Company earns fees from an insurance distribution business, a third-party administrator and as a servicing carrier of workers' compensation assigned risk plans for certain states. Insurance service fees were $31 million in 2026 compared to $33 million in 2025.
Net Realized and Unrealized Gains (Losses) on Investments. The Company buys and sells securities and other investment assets on a regular basis in order to maximize its total return on investments. Decisions to sell securities and other investment assets are based on management’s view of the underlying fundamentals of specific investments as well as management’s expectations regarding interest rates, credit spreads, currency values and general economic conditions. Net realized and unrealized losses on investments were $55 million in 2026 compared with gains of $31 million in 2025. The losses of $55 million in 2026 reflected net realized losses on investments of $37 million and a decrease in unrealized gains on equity securities of $18 million. The gains of $31 million in 2025 reflected an increase in unrealized gains on equity securities of $64 million, partially offset by net realized losses on investments of $33 million.
Change in Allowance for Expected Credit Losses on Investments. Based on credit factors, the allowance for expected credit losses is increased or decreased depending on the percentage of unrealized loss relative to amortized cost by security, changes in rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. The pre-tax change in allowance for expected credit losses on investments, which are reflected in net investment gains (losses), increased by $59 thousand ($47 thousand after-tax) in 2026, and decreased by $0.4 million ($0.3 million after-tax) in 2025.
Revenues from Non-Insurance Businesses. Revenues from non-insurance businesses were derived from businesses engaged in the distribution of promotional merchandise, world-wide textile solutions and aviation-related businesses that provide services to aviation markets, including (i) the distribution, manufacturing, repair and overhaul of aircraft parts and components, (ii) the sale of new and used aircraft, and (iii) avionics, fuel, maintenance, storage and charter services. Revenues from non-insurance businesses were $134 million in 2026 and $129 million in 2025. The increase mainly relates to aviation-related business, partially offset by the reduction in commercial and residential textile business and promotional merchandise business.
Losses and Loss Expenses. Losses and loss expenses increased to $1,961 million in 2026 from $1,955 million in 2025. The consolidated loss ratio was 61.5% in 2026 and 63.1% in 2025. Catastrophe losses, net of reinsurance recoveries, were $62 million in 2026, compared to $99 million in 2025 driven by frequency of severe storms. Favorable prior year reserve development (net of premium offsets) was $1 million in both 2026 and 2025. The loss ratio excluding catastrophe losses and prior year reserve development decreased 0.3 points to 59.6% in 2026 from 59.9% in 2025.
WRB insider buying and selling (Form 4)
Since 2026-04-11, insiders reported open-market purchases in 0 Form 4 filings and open-market sales in 0 filings. Totals add up every open-market (code P and S) line in those filings, using the prices reported in the filings. Awards, option exercises, tax withholding and gifts are listed below but not counted.
| Trade date | Insider | Transaction | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-08-03 | Welt Philip S |
Grant/award | 14,086 | — | — |
| 2026-08-03 | Welt Philip S |
Shares withheld for tax | 592 | $72.29 | $42.8K |
| 2026-08-03 | Baio Richard Mark |
Shares withheld for tax | 650 | $72.29 | $47.0K |
| 2026-08-03 | Baio Richard Mark |
Grant/award | 14,086 | — | — |
| 2026-08-03 | Berkley William R Jr |
Grant/award | 98,593 | — | — |
| 2026-08-03 | Berkley William R Jr |
Shares withheld for tax | 4,139 | $72.29 | $299.2K |
| 2026-08-03 | Shiel James G |
Grant/award | 14,086 | — | — |
| 2026-08-03 | Shiel James G |
Shares withheld for tax | 650 | $72.29 | $47.0K |
| 2026-06-03 | Berkley William R |
Grant/award | 3,090 | — | — |
| 2026-06-03 | Ferre Maria Luisa |
Grant/award | 3,090 | — | — |
| 2026-06-03 | Mattson Marie Angela |
Grant/award | 3,090 | — | — |
| 2026-06-03 | Berkley William R Jr |
Grant/award | 3,090 | — | — |
| 2026-06-03 | Mosley Daniel Lynn |
Grant/award | 3,090 | — | — |
| 2026-06-03 | Farrell Mary C |
Grant/award | 3,090 | — | — |
| 2026-06-03 | Rusbuldt Robert Alan |
Grant/award | 3,090 | — | — |
| 2026-06-03 | Augostini Christopher L |
Grant/award | 3,090 | — | — |
| 2026-06-03 | Blaylock Ronald E |
Grant/award | 3,090 | — | — |
| 2026-06-03 | Talisman Jonathan |
Grant/award | 3,090 | — | — |
Well-known investors holding WRB (13F)
| Investor | Quarter | Shares | Reported value | % of their 13F | Change vs prior quarter |
|---|---|---|---|---|---|
| AQR Capital Management (Cliff Asness) | 2026-06-30 | 3,680,160 | $259.6M | 0.09% | Added 99% |
| Two Sigma Investments | 2026-06-30 | 2,013,358 | $142.0M | 0.11% | Added 638% |
| Citadel Advisors (Ken Griffin) | 2026-06-30 | 1,475,954 | $104.1M | 0.06% | Added 6% |
| Millennium Management (Israel Englander) | 2026-06-30 | 936,192 | $66.0M | 0.04% | Added 104% |
| D. E. Shaw & Co. | 2026-06-30 | 290,364 | $20.5M | 0.01% | Added 45% |
| Gotham Asset Management (Joel Greenblatt) | 2026-06-30 | 206,717 | $14.6M | 0.03% | Added 24% |
| Markel Group (Tom Gayner) | 2026-06-30 | 60,750 | $4.3M | 0.03% | No change |
| Bridgewater Associates | 2026-06-30 | 13,499 | $952.1K | 0.0% | New position |