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What changed in W. R. Berkley Corporation's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of W. R. Berkley Corporation's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+348 added−329 removedSource: 10-K (2026-02-27) vs 10-K (2025-02-24)

Top changes in W. R. Berkley Corporation's 2025 10-K

348 paragraphs added · 329 removed · 295 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

99 edited+17 added−10 removed162 unchanged
Biggest changeW / R / B Underwriting provides a broad range of insurance products to the Lloyd's marketplace, with a concentration in specialist classes of business including property, professional indemnity and financial lines. 10 The following table sets forth the percentage of gross premiums written by each Insurance business: Year Ended December 31, 2024 2023 2022 Acadia Insurance 5.4% 5.4% 5.3% Admiral Insurance 7.3 7.0 6.3 Berkley Accident and Health 5.9 5.4 5.2 Berkley Agribusiness 0.6 0.8 0.8 Berkley Alliance Managers 2.3 2.4 2.8 Berkley Aspire 1.3 1.2 1.0 Berkley Asset Protection 0.9 0.9 1.0 Berkley Canada 1.0 1.0 1.2 Berkley Construction Solutions 0.7 0.6 0.4 Berkley Custom Insurance 2.9 2.9 3.2 Berkley Cyber Risk Solutions 0.7 0.8 0.9 Berkley Enterprise Risk Solutions 0.2 0.1 — Berkley Entertainment 1.6 1.7 1.9 Berkley Environmental 7.3 6.7 5.7 Berkley Financial Specialists 0.6 0.6 0.6 Berkley Fire & Marine 0.8 0.9 0.8 Berkley Healthcare 1.2 1.5 1.8 Berkley Human Services 1.4 1.3 1.1 Berkley Industrial Comp 0.8 0.7 0.7 Berkley Insurance Asia 0.7 0.8 0.8 Berkley Insurance Australia 1.4 1.6 1.7 Berkley Latinoamérica 3.3 3.2 3.0 Berkley Life Sciences 0.5 0.5 0.5 Berkley Luxury Group 0.7 0.7 0.8 Berkley Management Protection 0.3 0.2 0.1 Berkley Mid-Atlantic Group 0.7 0.9 1.0 Berkley Net Underwriters 1.9 2.0 2.3 Berkley North Pacific 0.8 0.7 0.7 Berkley Offshore Underwriting Managers 1.4 1.5 1.5 Berkley Oil & Gas 1.8 3.0 3.5 Berkley One 3.7 2.6 1.8 Berkley Product Protection 0.4 0.3 0.3 Berkley Professional Liability 2.7 3.8 5.9 Berkley Public Entity 0.6 0.7 0.7 Berkley Risk 0.3 0.3 0.3 Berkley Select 1.8 1.9 1.8 Berkley Small Business Solutions 0.3 0.2 — Berkley Southeast 2.2 2.3 2.2 Berkley Southwest 1.1 1.3 1.5 Berkley Specialty Excess 0.6 0.2 — Berkley Surety 1.1 1.1 1.1 Berkley Technology Underwriters 0.6 0.6 0.6 Carolina Casualty 2.0 2.2 2.1 Continental Western Group 2.8 2.6 2.4 Gemini Transportation 2.8 3.0 3.1 Intrepid Direct 1.4 1.5 1.2 Key Risk 1.9 2.1 2.2 Nautilus Insurance Group 5.2 4.8 4.8 Preferred Employers Insurance 0.9 1.0 1.3 Vela Insurance Services 2.5 2.7 2.6 Verus Specialty Insurance 1.1 1.0 0.8 W R B Europe 1.2 1.1 1.1 W/R/B Underwriting 4.1 3.9 3.7 Other 2.3 1.8 1.9 Total 100.0% 100.0% 100.0% 11 The following table sets forth percentages of gross premiums written, by line, by our Insurance operations: Year Ended December 31, 2024 2023 2022 Other liability 39.0% 38.7% 37.5% Short-tail lines (1) 26.1 24.7 22.8 Auto 12.9 12.7 12.0 Professional liability 12.0 13.1 15.8 Workers' compensation 10.0 10.8 11.9 Total 100.0% 100.0% 100.0% ___________________ (1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery, high net worth homeowners and other lines.
Biggest changeIt primarily serves the construction, manufacturing, garage service and professional sectors through a selective wholesale broker network. 11 W R B Europe is comprised of specialist businesses offering a focused range of insurance products to markets in Continental Europe. 12 The following table sets forth the percentage of gross premiums written by each Insurance business: Year Ended December 31, 2025 2024 2023 Acadia Insurance 5.4% 5.4% 5.4% Admiral Insurance 7.9 7.3 7.0 Berkley Accident and Health 6.8 5.9 5.4 Berkley Agribusiness 0.5 0.6 0.8 Berkley Alliance Managers 2.2 2.3 2.4 Berkley Aspire 1.4 1.3 1.2 Berkley Asset Protection 0.9 0.9 0.9 Berkley Canada 1.0 1.0 1.0 Berkley Construction Solutions 0.8 0.7 0.6 Berkley Custom Insurance 2.8 2.9 2.9 Berkley Cyber Risk Solutions 0.6 0.7 0.8 Berkley Enterprise Risk Solutions 0.2 0.2 0.1 Berkley Entertainment 1.7 1.6 1.7 Berkley Environmental 7.6 7.3 6.7 Berkley Financial Specialists 0.6 0.6 0.6 Berkley Fire & Marine 0.8 0.8 0.9 Berkley Healthcare 1.1 1.2 1.5 Berkley Human Services 0.7 1.4 1.3 Berkley Industrial Comp 0.9 0.8 0.7 Berkley Insurance Asia 0.6 0.7 0.8 Berkley Insurance Australia 1.3 1.4 1.6 Berkley Latinoamérica 3.4 3.3 3.2 Berkley Life Sciences 0.6 0.5 0.5 Berkley Luxury Group 0.8 0.7 0.7 Berkley Management Protection 0.5 0.3 0.2 Berkley Mid-Atlantic Group 0.7 0.7 0.9 Berkley Net Underwriters 1.6 1.9 2.0 Berkley North Pacific 0.7 0.8 0.7 Berkley Offshore Underwriting Managers 1.3 1.4 1.5 Berkley Oil & Gas 1.6 1.8 3.0 Berkley One 4.8 3.7 2.6 Berkley Product Protection 0.4 0.4 0.3 Berkley Professional Liability 2.3 2.7 3.8 Berkley Public Entity 0.4 0.6 0.7 Berkley Risk 0.3 0.3 0.3 Berkley Select 1.7 1.8 1.9 Berkley Small Business Solutions 0.6 0.3 0.2 Berkley Southeast 1.9 2.2 2.3 Berkley Southwest 1.1 1.1 1.3 Berkley Specialty Excess 0.8 0.6 0.2 Berkley Specialty London 3.9 4.1 3.9 Berkley Surety 1.0 1.1 1.1 Berkley Technology Underwriters 0.5 0.6 0.6 Carolina Casualty 1.9 2.0 2.2 Continental Western Group 2.9 2.8 2.6 Gemini Transportation 2.5 2.8 3.0 Intrepid Direct 1.4 1.4 1.5 Key Risk 2.2 1.9 2.1 Nautilus Insurance Group 5.1 5.2 4.8 Preferred Employers Insurance 0.7 0.9 1.0 Vela Insurance Services 2.1 2.5 2.7 Verus Specialty Insurance 1.1 1.1 1.0 W R B Europe 1.3 1.2 1.1 Other 2.1 2.3 1.8 Total 100.0% 100.0% 100.0% 13 The following table sets forth percentages of gross premiums written, by line, by our Insurance operations: Year Ended December 31, 2025 2024 2023 Other liability 38.6% 39.0% 38.7% Short-tail lines (1) 27.3 26.1 24.7 Auto 12.9 12.9 12.7 Professional liability 11.4 12.0 13.1 Workers' compensation 9.8 10.0 10.8 Total 100.0% 100.0% 100.0% ___________________ (1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery, high net worth homeowners and other lines.
We are required to, at least annually, conduct an Own Risk and Solvency Assessment regarding the adequacy of our risk management framework and our current, and estimated projected future, solvency position. We must internally document the process and results of the assessment.
We are required, at least annually, to conduct an Own Risk and Solvency Assessment regarding the adequacy of our risk management framework and our current, and estimated projected future, solvency position. We must internally document the process and results of the assessment.
The Company's annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act and other reports filed by us or with respect to our securities by others are accessible free of charge through this website as soon as reasonably practicable after they have been electronically filed with or furnished to the SEC.
The Company's annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act and other reports filed by us or with respect to our securities by others are accessible free of charge through this website as soon as reasonably practicable after they have been electronically filed with or furnished to the SEC. 28
Under the new guidance, the FSOC is no longer required to conduct a cost-benefit analysis and an assessment of the likelihood of a non-bank financial company’s material financial distress before considering the designation of the company. The revised process could have the effect of simplifying and shortening FSOC’s procedures for designating certain financial companies as non-bank SIFIs.
Under the guidance, the FSOC is no longer required to conduct a cost-benefit analysis and an assessment of the likelihood of a non-bank financial company’s material financial distress before considering the designation of the company. The revised process could have the effect of simplifying and shortening FSOC’s procedures for designating certain financial companies as non-bank SIFIs.
In 2022, the NAIC adopted a new standard for insurance companies to report their climate-related risks as part of its annual Climate Risk Disclosure Survey, which applies to insurers that meet the reporting threshold of $100 million in U.S. direct premium and are licensed in one of the participating jurisdictions.
In 2022, the NAIC adopted a standard for insurance companies to report their climate-related risks as part of its annual Climate Risk Disclosure Survey, which applies to insurers that meet the reporting threshold of $100 million in U.S. direct premium and are licensed in one of the participating jurisdictions.
Berkley Latinoamérica provides property, casualty, auto, surety, group life and workers' compensation products and services in Argentina, Brazil, the Caribbean, Colombia, Mexico and Uruguay. 8 Berkley Life Sciences offers a comprehensive spectrum of property casualty products to the life sciences industry on a global basis, including both primary and excess product liability coverages.
Berkley Latinoamérica provides property, casualty, auto, surety, group life and workers' compensation products and services in Argentina, Brazil, the Caribbean, Colombia, Mexico and Uruguay. Berkley Life Sciences offers a comprehensive spectrum of property casualty products to the life sciences industry on a global basis, including both primary and excess product liability coverages.
The NAIC utilizes a Risk-Based Capital (“RBC”) formula that is designed to measure the adequacy of an insurer's statutory surplus in relation to the risks inherent in its business. The RBC formula develops a risk adjusted target level of adjusted statutory capital by applying certain factors to various asset, premium and reserve items.
Risk-Based Capital Requirements . The NAIC utilizes a Risk-Based Capital (“RBC”) formula that is designed to measure the adequacy of an insurer's statutory surplus in relation to the risks inherent in its business. The RBC formula develops a risk adjusted target level of adjusted statutory capital by applying certain factors to various asset, premium and reserve items.
Following the U.K.’s withdrawal from the EU, or Brexit, our Lloyd’s managing agency (and the U.K. branch of our Liechtenstein subsidiary) are now subject to a separate U.K. prudential regime, which derives from Solvency II but has recently begun to diverge from it.
Following the U.K.’s withdrawal from the EU, or Brexit, our Lloyd’s managing agency (and the U.K. branch of our Liechtenstein subsidiary) are now subject to a separate U.K. prudential regime, which derives from Solvency II but has begun to diverge from it.
Federal or state measures may be introduced to increase the oversight of surplus lines insurance in the future. Climate Change and Financial Risks . The NAIC and state insurance regulators continue to evaluate issues related to the management of climate risk.
Federal or state measures may be introduced to increase the oversight of surplus lines insurance in the future. 22 Climate Change and Financial Risks . The NAIC and state insurance regulators continue to evaluate issues related to the management of climate risk.
Our leadership programs cultivate the talent of our high-potential, strong-performing employees as we strive to deepen, enhance and diversify the Company’s leadership team. 24 We strive to align employee incentives with the risk and performance frameworks of the Company.
Our leadership programs cultivate the talent of our high-potential, strong-performing employees as we strive to deepen, enhance and diversify the Company’s leadership team. We strive to align employee incentives with the risk and performance frameworks of the Company.
We have received notice from Delaware, our lead state insurance regulator, that we are considered an IAIG. As an IAIG, we may be subject to international oversight coordinated by the Delaware Department of Insurance .
We have received notice from 25 Delaware, our lead state insurance regulator, that we are considered an IAIG. As an IAIG, we may be subject to international oversight coordinated by the Delaware Department of Insurance .
For example, an insurer should designate a board member or board committee, as well as a senior management function, to oversee the management of financial risks 20 associated with climate change.
For example, an insurer should designate a board member or board committee, as well as a senior management function, to oversee the management of financial risks associated with climate change.
The Dodd-Frank Act effected sweeping changes to financial services regulation in the United States, and created two new federal government bodies, the FIO and the Financial Stability Oversight Council (the “FSOC”).
The Dodd-Frank Act effected sweeping changes to financial services regulation in the United States, and created two federal government bodies, the FIO and the Financial Stability Oversight Council (the “FSOC”).
It has a diversified product and service portfolio serving a range of clients from small employers, health care organizations, and membership groups to Fortune 500 companies. 7 Berkley Agribusiness offers insurance for larger commercial risks across the United States involved in the supply, storage, handling, processing and distribution of commodities related to the agriculture and food industries.
It has a diversified product and service portfolio serving a range of clients from small employers, health care organizations, and membership groups to Fortune 500 companies. 8 Berkley Agribusiness offers insurance for larger commercial risks across the United States involved in the supply, storage, handling, processing and distribution of commodities related to the agriculture and food industries.
While there is no one “Berkley” way, each of our businesses has its own culture that embodies a shared set of values that define our enterprise. Our structure, with 58 distinct businesses, facilitates the prompt identification of and appropriate action with respect to addressing individual business or cultural issues arising within a business, without affecting the larger enterprise.
While there is no one “Berkley” way, each of our businesses has its own culture that embodies a shared set of values that define our enterprise. Our structure, with 60 distinct businesses, facilitates the prompt identification of and appropriate action with respect to addressing individual business or cultural issues arising within a business, without affecting the larger enterprise.
Our twenty-five insurance company subsidiaries rated by Fitch Ratings ("Fitch") have insurer financial strength ratings of AA- (the fourth highest rating out of twenty-seven possible ratings). 6 The following sections describe our reporting segments and their businesses in greater detail. These businesses underwrite on behalf of one or more affiliated insurance companies within the group.
Our twenty-five insurance company subsidiaries rated by Fitch Ratings ("Fitch") have insurer financial strength ratings of AA- (the fourth highest rating out of twenty-seven possible ratings). 7 The following sections describe our reporting segments and their businesses in greater detail. These businesses underwrite on behalf of one or more affiliated insurance companies within the group.
However, the Covered Agreements prohibit any EU supervisor or the PRA (as applicable) from exercising group- wide supervision at any level above the highest company organized in the country of that supervisor. We must also comply with the EU General Data Protection Regulation (EU) 2016/879) (“GDPR”), including EEA member state legislation implementing the GDPR.
However, the Covered Agreements prohibit any EU supervisor or the PRA (if applicable) from exercising group- wide supervision at any level above the highest company organized in the country of that supervisor. We must also comply with the EU General Data Protection Regulation (EU) 2016/879) (“GDPR”), including EEA member state legislation implementing the GDPR.
The Company also discounts reserves for certain other long-duration workers’ compensation reserves (representing approximately 3% of total discounted reserves at December 31, 2024), 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.
The Company also discounts reserves for certain other long-duration workers’ compensation reserves (representing approximately 3% of total discounted reserves at December 31, 2025), 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.
(2) Represents the pre-tax change in unrealized investment gains (losses) for available for sale securities recognized in stockholders' equity. For comparison, the following are the coupon returns for the Barclays U.S. Aggregate Bond Index and the dividend returns for the S&P 500 ® Index: Year Ended December 31, 2024 2023 2022 Barclays U.S.
(2) Represents the pre-tax change in unrealized investment gains (losses) for available for sale securities recognized in stockholders' equity. For comparison, the following are the coupon returns for the Barclays U.S. Aggregate Bond Index and the dividend returns for the S&P 500 ® Index: Year Ended December 31, 2025 2024 2023 Barclays U.S.
Although the loss reserves included in the Company’s financial statements represent management’s best estimates, setting reserves is inherently uncertain and the Company cannot provide assurance that its current reserves will prove adequate in light of subsequent events. 15 The Company discounts its liabilities for certain workers’ compensation reserves.
Although the loss reserves included in the Company’s financial statements represent management’s best estimates, setting reserves is inherently uncertain and the Company cannot provide assurance that its current reserves will prove adequate in light of subsequent events. 17 The Company discounts its liabilities for certain workers’ compensation reserves.
We have no customer that accounts for 10 percent or more of our consolidated revenues. Compliance by W. R.
We have no customer that accounts for 10 percent or more of our consolidated revenues. 27 Compliance by W. R.
The NAIC has adopted the Insurance Data Security Model Law (the “Cybersecurity Model Law”) for consideration by state legislatures, which establishes standards for data security, the investigation of cybersecurity events involving the unauthorized access to, or misuse of, certain nonpublic information, and reporting to insurance commissioners.
The NAIC has adopted the Insurance Data Security Model Law (the “Cybersecurity Model Law”) for consideration by state legislatures, which establishes standards for data security, the investigation of cybersecurity events involving the unauthorized access to, or misuse of, certain nonpublic information, and reporting to insurance commissioners regarding the same.
The revised process is based on the consideration of risk factors set forth in a new analytic framework, which describes how the FSOC intends to monitor a broad range of institutions and activities and respond to potential risks to U.S. financial stability.
The revised process is based on the consideration of risk factors set forth in an analytic framework, which describes how the FSOC intends to monitor a broad range of institutions and activities and respond to potential risks to U.S. financial stability.
Aggregate Bond Index 3.4 % 3.3 % 2.7 % S&P 500 ® Index 1.7 2.0 1.3 The percentages of the fixed maturity portfolio categorized by contractual maturity, based on fair value, on the dates indicated, are set forth below.
Aggregate Bond Index 3.9 % 3.4 % 3.3 % S&P 500 ® Index 1.5 1.7 2.0 The percentages of the fixed maturity portfolio categorized by contractual maturity, based on fair value, on the dates indicated, are set forth below.
At December 31, 2024, discount rates by year ranged from 0.7% to 6.5%, with a weighted average discount rate of 3.6%. Substantially all discounted workers’ compensation reserves (97% of total discounted reserves at December 31, 2024) are excess workers’ compensation reserves.
At December 31, 2025, discount rates by year ranged from 0.7% to 6.5%, with a weighted average discount rate of 3.6%. Substantially all discounted workers’ compensation reserves (97% of total discounted reserves at December 31, 2025) are excess workers’ compensation reserves.
The FIO can recommend that an insurer be designated as a non-bank SIFI, which would subject the company to Federal Reserve supervision and heightened prudential standards. There are currently no such non-bank SIFIs designated by the FSOC. In November 2023, the FSOC adopted final guidance that establishes a new process for designating certain financial companies as non-bank SIFIs.
The FIO can recommend that an insurer be designated as a non-bank SIFI, which would subject the company to Federal Reserve supervision and heightened prudential standards. There are currently no such non-bank SIFIs designated by the FSOC. In November 2023, the FSOC adopted final guidance that established a process for designating certain financial companies as non-bank SIFIs.
This regulation relates to such matters as the standards of solvency which must be met and maintained; the licensing of insurers and their agents; the nature of and limitations on investments; deposits of securities for the benefit of policyholders; approval of certain policy forms and premium rates; periodic examination of the affairs of insurance companies; annual and other reports required to be filed on the financial condition of insurers or for other purposes; establishment and maintenance of reserves for unearned premiums, loss expenses and losses; and requirements regarding numerous other matters.
This regulation relates to such matters as the standards of solvency which must be met and maintained; the licensing of insurers and their agents; the nature of and limitations on investments; deposits of securities for the benefit of policyholders; approval of certain policy forms and premium rates; periodic examination of the affairs of insurance companies; annual and other reports required to be filed on the financial condition of insurers or for other purposes; establishment and maintenance of reserves for unearned premiums, loss expenses and losses; regulating certain transactions with affiliates; and requirements regarding numerous other matters.
Of this number, our subsidiaries employed 8,474 individuals and the remaining individuals were employed at the parent company. We believe that our people are our greatest asset and that our corporate culture is the most important intangible driver of long-term value creation for our Company and the highest priority for pursuing long-term risk-adjusted returns and growth in stockholder value.
Of this number, our subsidiaries employed 8,678 individuals and the remaining individuals were employed at the parent company. 26 We believe that our people are our greatest asset and that our corporate culture is the most important intangible driver of long-term value creation for our Company and the highest priority for pursuing long-term risk-adjusted returns and growth in stockholder value.
Its products are distributed by a select group of independent retail agents and wholesale brokers. Berkley Insurance Asia underwrites specialty commercial insurance coverages to clients in North Asia and Southeast Asia through offices in Hong Kong, India, Shanghai and Singapore. Berkley Insurance Australia underwrites general insurance business in Australia, including professional indemnity insurance for companies of all sizes.
Its products are distributed by a select group of independent retail agents and wholesale brokers. 9 Berkley Insurance Asia underwrites specialty commercial insurance coverages to clients in Asia through offices in Hong Kong, India, Shanghai and Singapore. Berkley Insurance Australia underwrites general insurance business in Australia, including professional indemnity insurance for companies of all sizes.
The regulation’s goal is to impose increased individual rights and protections for all personal data located in or originating from the EU. The Data Protection Act 2018 and the U.K.
The regulation’s goal is to provide increased individual rights and protections for all personal data located in or originating from the EU. The Data Protection Act 2018 and the U.K.
Best reviews its ratings on a periodic basis, and its ratings of the Company's subsidiaries are therefore subject to change. Our twenty-three insurance company subsidiaries rated by Standard & Poor's (“S&P”) have financial strength ratings of A + (the fifth highest rating out of twenty-seven possible ratings).
Best reviews its ratings on a periodic basis, and its ratings of the Company's subsidiaries are therefore subject to change. Our twenty-three insurance company subsidiaries rated by Standard & Poor's (“S&P”) have financial strength ratings of AA- (the fourth highest rating out of twenty-seven possible ratings).
Berkley Management Protection offers a modular suite of management liability products for small and middle market companies through a bespoke and easy to use platform tailored to independent agents. The management liability coverages they provide include directors and officers, employment practices, fiduciary, cyber, crime and miscellaneous professional liability.
Berkley Management Protection offers a modular suite of management liability products for small and middle market companies through a bespoke and easy to use platform tailored to independent agents. The management liability coverages provided include directors and officers, employment practices, fiduciary, cyber, crime and miscellaneous professional liability.
The NAIC RBC Model Law provides for four incremental levels of regulatory attention for insurers whose surplus is below the calculated RBC target. These levels of attention range in severity from requiring the insurer to submit a plan for corrective action to actually placing the insurer under regulatory control.
The NAIC RBC Model Law provides for four incremental RBC levels of action or regulatory control for insurers whose surplus is below the associated RBC target. These RBC levels of attention range in severity from requiring the insurer to submit a plan for corrective action to actually placing the insurer under regulatory control.
Regulation Our U.S. insurance subsidiaries are principally regulated by their domiciliary state insurance departments and are subject to varying degrees of regulation and supervision in the other U.S. jurisdictions in which they do business. As of January 1, 2025, there are six domiciliary states related to our U.S. insurance subsidiaries. Overview .
Regulation Our U.S. insurance subsidiaries are principally regulated by their domiciliary state insurance departments and are subject to varying degrees of regulation and supervision in the other U.S. jurisdictions in which they do business. As of January 1, 2026, there are eight domiciliary states related to our U.S. insurance subsidiaries. Overview .
Further, an expanded supply of reinsurance capital may lower costs for insurers that rely on reinsurance and, as a consequence, those insurers may be able to price their products more competitively. Human Capital Resources As of January 15, 2025, we employed 8,606 individuals.
Further, an expanded supply of reinsurance capital may lower costs for insurers that rely on reinsurance and, as a consequence, those insurers may be able to price their products more competitively. Human Capital Resources As of January 15, 2026, we employed 8,804 individuals.
Our property casualty subsidiaries, other than our excess and surplus lines and reinsurance subsidiaries, must generally file all rates with the insurance department of each state in which they operate. Our excess and surplus lines and reinsurance subsidiaries generally operate free of rate and form regulation. 17 Holding Company Statutes .
Our property casualty subsidiaries, other than our excess and surplus lines and reinsurance subsidiaries, must generally file all rates and policy forms with the insurance department of each state in which they operate. Our excess and surplus lines and reinsurance subsidiaries generally operate free of rate and form regulation. 19 Holding Company Statutes .
The insurer's deductible is calculated as 20% of earned premium for the prior year for covered lines of commercial property and casualty insurance. Based on our 2024 earned premiums, our aggregate deductible under TRIPRA during 2025 will be approximately $1,663 million.
The insurer's deductible is calculated as 20% of earned premium for the prior year for covered lines of commercial property and casualty insurance. Based on our 2025 earned premiums, our aggregate deductible under TRIPRA during 2026 will be approximately $1,835 million.
The Company’s net reserves for losses and loss expenses relating to environmental and asbestos claims on policies written before adoption of the absolute exclusion was $16 million and $17 million at December 31, 2024 and 2023, respectively.
The Company’s net reserves for losses and loss expenses relating to environmental and asbestos claims on policies written before adoption of the absolute exclusion was $13 million and $16 million at December 31, 2025 and 2024, respectively.
(2) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years increased by $13 million in 2024, decreased by $13 million in 2023, and increased by $16 million in 2022.
(2) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years increased by $29 million in 2025, increased by $13 million in 2024, and decreased by $13 million in 2023.
GDPR are extraterritorial in that they apply to all businesses in the EU and the U.K. respectively, and any business outside the EU and the U.K. that offers services, or monitors the behavior of individuals, in the EU and/or U.K., and that processes the personal data of individuals in the EU and/or the U.K.
GDPR are extraterritorial in that they apply to all businesses in the EU and the U.K. respectively, and any business outside the EU and the U.K. that target services to, or monitors the behavior of individuals in, the EU and/or U.K., and that process the personal data of individuals in the EU and/or the U.K.
Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay certain obligations. 14 Year Ended December 31, 2024 2023 2022 1 year or less 7.7% 9.2% 8.7% Over 1 year through 5 years 40.5 46.2 47.2 Over 5 years through 10 years 17.4 21.2 23.4 Over 10 years 17.6 12.2 11.2 Mortgage-backed securities 16.8 11.2 9.5 Total 100.0% 100.0% 100.0% At each of December 31, 2024, 2023 and 2022, the fixed maturity portfolio, including cash and cash equivalents, had an effective duration of 2.6 years, 2.4 years and 2.4 years, respectively.
Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay certain obligations. 16 Year Ended December 31, 2025 2024 2023 1 year or less 6.9% 7.7% 9.2% Over 1 year through 5 years 32.2 40.5 46.2 Over 5 years through 10 years 15.3 17.4 21.2 Over 10 years 26.4 17.6 12.2 Mortgage-backed securities 19.2 16.8 11.2 Total 100.0% 100.0% 100.0% At each of December 31, 2025, 2024 and 2023, the fixed maturity portfolio, including cash and cash equivalents, had an effective duration of 3.0 years, 2.6 years and 2.4 years, respectively.
The Cybersecurity Model Law imposes significant regulatory burdens intended to protect the confidentiality, integrity and availability of information systems. The Cybersecurity Model Law, or a form thereof, has been adopted by several states, including three of our U.S. insurance subsidiaries’ domiciliary states.
The Cybersecurity Model Law imposes significant regulatory burdens intended to protect the confidentiality, integrity and availability of information systems. The Cybersecurity Model Law, or a form thereof, has been adopted by more than 25 states, including four of our U.S. insurance subsidiaries’ domiciliary states.
The amount of workers’ compensation reserves that were discounted was $1,358 million and $1,352 million at December 31, 2024 and 2023, respectively. The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $405 million and $390 million at December 31, 2024 and 2023, respectively.
The amount of workers’ compensation reserves that were discounted was $1,400 million and $1,358 million at December 31, 2025 and 2024, respectively. The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $420 million and $405 million at December 31, 2025 and 2024, respectively.
Our U.S. insurance subsidiaries are also subject to assessment by state guaranty funds in states where we transact admitted business when an insurer in a particular jurisdiction has been judicially declared insolvent and the insolvent company's available funds are insufficient to pay policyholders and claimants the amounts to which they are entitled.
Our U.S. insurance subsidiaries are also subject to assessment by state guaranty funds in states where we transact admitted business when an insurer in a particular jurisdiction has been judicially declared insolvent and the insolvent company's available funds are insufficient to pay policyholders and claimants the amounts to which they are entitled. 21 The protection afforded under a state's guaranty fund to policyholders of the insolvent insurer varies from state to state.
A number in excess of 100 indicates an underwriting loss; a number below 100 indicates an underwriting profit: Year Ended December 31, 2024 2023 2022 Insurance Loss ratio 62.8 % 62.3 % 61.4 % Expense ratio 28.4 28.3 27.7 Combined ratio 91.2 % 90.6 % 89.1 % Reinsurance & Monoline Excess Loss ratio 54.7 % 54.3 % 61.0 % Expense ratio 29.4 29.4 29.2 Combined ratio 84.1 % 83.7 % 90.2 % Total Loss ratio 61.8 % 61.3 % 61.3 % Expense ratio 28.5 28.4 28.0 Combined ratio 90.3 % 89.7 % 89.3 % Investments Investment results, before income taxes, were as follows: Year Ended December 31, (In thousands) 2024 2023 2022 Average investments, at cost (1) $ 28,942,819 $ 26,444,111 $ 24,438,112 Net investment income (1) $ 1,333,161 $ 1,052,835 $ 779,185 Percent earned on average investments (1) 4.6 % 3.9 % 3.2 % Net investment gains $ 117,708 $ 47,042 $ 202,397 Change in unrealized investment gains (losses) (2) $ 84,474 $ 392,903 $ (1,248,128) _______________________________________ (1) Includes investments, cash and cash equivalents, trading accounts receivable (payable) from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.
A number in excess of 100 indicates an underwriting loss; a number below 100 indicates an underwriting profit: Year Ended December 31, 2025 2024 2023 Insurance Loss ratio 63.5 % 62.8 % 62.3 % Expense ratio 28.2 28.4 28.3 Combined ratio 91.7 % 91.2 % 90.6 % Reinsurance & Monoline Excess Loss ratio 54.6 % 54.7 % 54.3 % Expense ratio 29.1 29.4 29.4 Combined ratio 83.7 % 84.1 % 83.7 % Total Loss ratio 62.4 % 61.8 % 61.3 % Expense ratio 28.3 28.5 28.4 Combined ratio 90.7 % 90.3 % 89.7 % Investments Investment results, before income taxes, were as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Average investments, at cost (1) $ 31,644,778 $ 28,942,819 $ 26,444,111 Net investment income (1) $ 1,429,067 $ 1,333,161 $ 1,052,835 Percent earned on average investments (1) 4.5 % 4.6 % 3.9 % Net investment gains $ 132,220 $ 117,708 $ 47,042 Change in unrealized investment gains (losses) (2) $ 497,765 $ 84,474 $ 392,903 _______________________________________ (1) Includes investments, cash and cash equivalents, trading accounts receivable (payable) from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.
Berkley Financial Specialists serves the insurance needs of companies predominantly in the financial services sector. Its Berkley Crime division provides crime and fidelity related insurance products for commercial organizations, financial sector businesses and governmental entities on a primary and excess basis. Its Financial Services segment provides management liability and fidelity products to financial institutions, insurance companies and asset management firms.
Its Berkley Crime division provides crime and fidelity related insurance products for commercial organizations, financial sector businesses and governmental entities on a primary and excess basis. Its Financial Services segment provides management liability and fidelity products to financial institutions, insurance companies and asset management firms.
Net premiums written, as reported based on United States generally accepted accounting principles (“GAAP”), for each of our reporting segments for each of the past three years were as follows: Year Ended December 31, (In thousands) 2024 2023 2022 Net premiums written: Insurance $ 10,549,550 $ 9,560,533 $ 8,609,028 Reinsurance & Monoline Excess 1,422,546 1,393,934 1,395,042 Total $ 11,972,096 $ 10,954,467 $ 10,004,070 Percentage of net premiums written: Insurance 88.1 % 87.3 % 86.1 % Reinsurance & Monoline Excess 11.9 12.7 13.9 Total 100.0 % 100.0 % 100.0 % Thirty-three of our insurance company subsidiaries are rated by A.M.
Net premiums written, as reported based on United States generally accepted accounting principles (“GAAP”), for each of our reporting segments for each of the past three years were as follows: Year Ended December 31, (In thousands) 2025 2024 2023 Net premiums written: Insurance $ 11,183,713 $ 10,549,550 $ 9,560,533 Reinsurance & Monoline Excess 1,527,614 1,422,546 1,393,934 Total $ 12,711,327 $ 11,972,096 $ 10,954,467 Percentage of net premiums written: Insurance 88.0 % 88.1 % 87.3 % Reinsurance & Monoline Excess 12.0 11.9 12.7 Total 100.0 % 100.0 % 100.0 % Thirty-three of our insurance company subsidiaries are rated by A.M.
The FIO also has authority to represent the United States in international insurance matters and is authorized to monitor the U.S. insurance industry and identify potential regulatory gaps that could contribute to systemic risk. The Dodd-Frank Act authorizes the Secretary of the Treasury and U.S.
The FIO also has authority to represent the United States in international insurance matters and is authorized to monitor the U.S. insurance industry and identify potential regulatory gaps that could contribute to systemic risk.
In December 2018, the U.S. Department of the Treasury and the Office of the U.S. Trade Representative entered into a covered agreement with the U.K. (the “U.K. Covered Agreement,” and together with the EU Covered Agreement, the “Covered Agreements”) in anticipation of the U.K.’s exit from the EU. The U.K.
Trade Representative entered into a covered agreement with the U.K. (the “U.K. Covered Agreement,” and together with the EU Covered Agreement, the “Covered Agreements”) in anticipation of the U.K.’s exit from the EU. The U.K.
The PRA/FCA’s Senior Managers and Certification Regime and analogous regulation in Liechtenstein further provide regulatory frameworks for standards of fitness and propriety, conduct and accountability for individuals in positions of responsibility at insurers. In addition, certain employees are individually registered at Lloyd’s.
The PRA/FCA’s Senior Managers and Certification Regime and analogous regulation in Liechtenstein further provide regulatory frameworks for standards of fitness and propriety, conduct and accountability for individuals in positions of responsibility at insurers.
It distributes its products through retail and wholesale agencies. 12 The following table sets forth the percentages of gross premiums written by each Reinsurance & Monoline Excess business: Year Ended December 31, 2024 2023 2022 Berkley Integrated Solutions 14.1% 16.2% 22.5% Berkley Re America 34.4 31.5 30.9 Berkley Re Asia Pacific 13.8 14.9 13.7 Berkley Re UK 9.9 10.6 11.3 Lloyd's Syndicate 2791 Participation 8.6 8.8 5.4 Midwest Employers Casualty 19.2 18.0 16.2 Total 100.0% 100.0% 100.0% The following table sets forth the percentages of gross premiums written, by line, by our Reinsurance & Monoline Excess operations: Year Ended December 31, 2024 2023 2022 Casualty 49.1% 54.1% 61.1% Property 31.6 27.9 22.7 Monoline Excess 19.3 18.0 16.2 Total 100.0% 100.0% 100.0% Results by Segment Summary financial information about our segments is presented on a GAAP basis in the following table: Year Ended December 31, (In thousands) 2024 2023 2022 Insurance Revenue $ 11,181,501 $ 9,827,866 $ 8,749,019 Income before income taxes 1,942,083 1,629,918 1,445,745 Reinsurance & Monoline Excess Revenue 1,696,905 1,615,277 1,590,113 Income before income taxes 466,595 449,285 326,440 Other (1) Revenue 760,346 699,795 827,367 Loss before income taxes (144,185) (324,800) (52,504) Total Revenue $ 13,638,752 $ 12,142,938 $ 11,166,499 Income before income taxes $ 2,264,493 $ 1,754,403 $ 1,719,681 _______________________________________ (1) Represents corporate revenues and expenses, net investment gains and losses, and revenues and expenses from non-insurance businesses that are consolidated for financial reporting purposes. 13 The table below represents summary underwriting ratios on a GAAP basis for our segments.
It distributes its products through retail and wholesale agencies. 14 The following table sets forth the percentages of gross premiums written by each Reinsurance & Monoline Excess business: Year Ended December 31, 2025 2024 2023 Berkley Integrated Solutions 15.2% 14.1% 16.2% Berkley Re America 33.2 34.4 31.5 Berkley Re Asia Pacific 11.9 13.8 14.9 Berkley Re UK 11.4 9.9 10.6 Lloyd's Syndicate 2791 Participation 8.3 8.6 8.8 Midwest Employers Casualty 20.0 19.2 18.0 Total 100.0% 100.0% 100.0% The following table sets forth the percentages of gross premiums written, by line, by our Reinsurance & Monoline Excess operations: Year Ended December 31, 2025 2024 2023 Casualty 46.3% 49.1% 54.1% Property 33.7 31.6 27.9 Monoline Excess 20.0 19.3 18.0 Total 100.0% 100.0% 100.0% Results by Segment Summary financial information about our segments is presented on a GAAP basis in the following table: Year Ended December 31, (In thousands) 2025 2024 2023 Insurance Revenue $ 12,095,601 $ 11,181,501 $ 9,827,866 Income before income taxes 2,027,244 1,942,083 1,629,918 Reinsurance & Monoline Excess Revenue 1,781,761 1,696,905 1,615,277 Income before income taxes 517,538 466,595 449,285 Other (1) Revenue 830,494 760,346 699,795 Loss before income taxes (264,239) (144,185) (324,800) Total Revenue $ 14,707,856 $ 13,638,752 $ 12,142,938 Income before income taxes $ 2,280,543 $ 2,264,493 $ 1,754,403 _______________________________________ (1) Represents corporate revenues and expenses, net investment gains and losses, and revenues and expenses from non-insurance businesses that are consolidated for financial reporting purposes. 15 The table below represents summary underwriting ratios on a GAAP basis for our segments.
It operates through independent agents in Arizona, Arkansas, New Mexico, Oklahoma and Texas. Berkley Specialty Excess provides excess and surplus lines coverages for hard-to-place risks involved in moderate to high degrees of hazard. It focuses on highly specialized risk exposures within specific industry verticals such as the environmental and energy industries.
Berkley Specialty Excess provides excess and surplus lines coverages for hard-to-place risks involved in moderate to high degrees of hazard. It focuses on highly specialized risk exposures within specific industry verticals such as the environmental and energy industries.
Berkley Fire & Marine offers a broad range of preferred inland marine and related property risks and services to customers throughout the United States. Products are distributed through independent agents and brokers. Berkley Healthcare underwrites customized, comprehensive insurance solutions for the full spectrum of healthcare providers. Through Berkley Healthcare Medical Professional, it offers a wide range of medical professional coverages.
Berkley Fire & Marine offers specialized insurance products and services for inland marine and related property risks, nationwide. These products are distributed through independent agents and brokers. Berkley Healthcare underwrites customized, comprehensive insurance solutions for the full spectrum of healthcare providers. Through Berkley Healthcare Medical Professional, it offers a wide range of medical professional coverages.
The RBC of each of our domestic insurance subsidiaries was above the calculated RBC target level as of December 31, 2024. Insurance Regulatory Information System. The NAIC also has developed a set of 13 financial ratios for property and casualty insurers referred to as the Insurance Regulatory Information System (“IRIS”).
The RBC of each of our domestic insurance subsidiaries exceeded any RBC action level as of December 31, 2025. Insurance Regulatory Information System. The NAIC also has developed a set of 13 financial ratios for property and casualty insurers referred to as the Insurance Regulatory Information System (“IRIS”).
The AI Bulletin may be adopted and issued by state regulators to licensed insurers. In addition to affirming that the use of artificial intelligence must comply with existing state law, the AI Bulletin sets forth regulators’ expectations on how insurers will develop, acquire and use artificial intelligence technologies including around the use of third-party data and models.
The AI Bulletin has been adopted and issued by approximately half of U.S. states. In addition to affirming that the use of artificial intelligence must comply with existing state law, the AI Bulletin sets forth regulators’ expectations on how insurers will develop, acquire and use artificial intelligence technologies including around the use of third-party data and models.
The NAIC amended its Credit for Reinsurance Model Law to satisfy the substantive and timing requirements of the Covered Agreements, which amendments have been enacted by all states. On September 30, 2023, the FIO reported that it did not recommend taking any preemption action as a result of inconsistency between the Covered Agreements and state credit for reinsurance laws.
The NAIC amended its Credit for Reinsurance Model Law to satisfy the substantive and timing requirements of the Covered Agreements, which amendments have been enacted by all states. However, the FIO did not take any preemption action as a result of inconsistency between the Covered Agreements and state credit for reinsurance laws.
Berkley Small Business Solutions offers commercial insurance products for small businesses through a modern technology platform that leverages data and analytics. Its initial product offering focuses on preferred risks in the non-fleet transportation market.
Berkley Select provides these insurance products on both an admitted and surplus lines basis. 10 Berkley Small Business Solutions offers commercial insurance products for small businesses through a modern technology platform that leverages data and analytics. Its initial product offering focuses on preferred risks in the non-fleet transportation market.
The NYDFS has adopted amendments to New York’s cybersecurity regulation, which require additional reporting, governance and oversight measures, and enhanced cybersecurity safeguards to be implemented. The amendments take effect in phases that began in 2023 and continue through 2025.
The NYDFS adopted amendments to New York’s cybersecurity regulation, that took effect in phases between November 2023 and November 2025, and which require additional reporting, governance and oversight measures, and enhanced cybersecurity safeguards to be implemented.
Under the Dodd-Frank Act, the FIO has preemption authority over state insurance laws that conflict with the Covered Agreements as of September 1, 2022, such as state credit for reinsurance laws that result in non-U.S. reinsurers subject to the Covered Agreements being treated less favorably than U.S. reinsurers.
Covered Agreement largely reflects the provisions of the EU Covered Agreement and incorporates the same timeframes within it. 23 Under the Dodd-Frank Act, the FIO has preemption authority over state insurance laws that conflict with the Covered Agreements as of September 1, 2022, such as state credit for reinsurance laws that result in non-U.S. reinsurers subject to the Covered Agreements being treated less favorably than U.S. reinsurers.
Of our 58 businesses, 51 have been organized and developed internally and seven have been added through acquisition.
Of our 60 businesses, 53 have been organized and developed internally and seven have been added through acquisition.
Berkley Professional Liability specializes in professional liability insurance for publicly-traded and private entities on a worldwide basis. Its liability coverages include directors and officers, errors and omissions, fiduciary, employment practices, and sponsored insurance agents' errors and omissions.
Berkley Professional Liability specializes in professional liability insurance for publicly-traded and private entities on a worldwide basis. Its liability coverages include directors and officers, errors and omissions, fiduciary, employment practices, and sponsored insurance agents' errors and omissions. Berkley Transactional, a division of Berkley Professional Liability, underwrites transactional insurance products, including representations and warranties insurance, and tax opinion insurance.
Pursuant to the Terrorism Risk Insurance Program Reauthorization Act of 2019 (“TRIPRA”), the program was extended until December 31, 2027. TRIPRA provides a federal backstop to all U.S. based property and casualty insurers for insurance related losses resulting from any act of terrorism on U.S. soil or against certain U.S. air carriers, vessels or foreign missions.
TRIPRA provides a federal backstop to all U.S. based property and casualty insurers for insurance related losses resulting from any act of terrorism on U.S. soil or against certain U.S. air carriers, vessels or foreign missions.
The protection afforded under a state's guaranty fund to policyholders of the insolvent insurer varies from state to state. Generally, all licensed property casualty insurers are considered to be members of the fund, and assessments are based upon their pro rata share of direct written premiums in that state.
Generally, all licensed property casualty insurers are considered to be members of the fund, and assessments are based upon their pro rata share of direct written premiums in that state.
Our insurance business throughout the EU and EEA is subject to “Solvency II,” an insurance regulatory regime governing, among other things, capital adequacy and risk management.
In addition, certain employees are individually registered at Lloyd’s. 24 Our insurance business throughout the EU and EEA is subject to “Solvency II,” an insurance regulatory regime governing, among other things, capital adequacy and risk management.
Berkley Cyber Risk Solutions focuses on insurance and risk management products that respond to the changing cyber security vulnerabilities of organizations around the world. It offers specialty commercial cyber insurance coverages on a worldwide basis to clients of all sizes. Berkley Enterprise Risk Solutions provides custom workers' compensation programs to large employers operating in a broad range of industries.
Berkley Cyber Risk Solutions focuses on insurance and risk management products that respond to the changing cyber security vulnerabilities of organizations around the world. It offers specialty commercial cyber insurance coverages on a worldwide basis to clients of all sizes.
A reconciliation between the reserves as of December 31, 2024 as reported in the accompanying consolidated GAAP financial statements and those reported on the basis of statutory accounting principles (“SAP”) in the Company’s U.S. regulatory filings is as follows: (In thousands) Net reserves reported in U.S. regulatory filings on a SAP basis $ 16,328,835 Reserves for non-U.S. companies 922,868 Loss reserve discounting (1) (92,921) Ceded reserves 3,201,389 Allowance for expected credit losses on due from reinsurers 7,859 Gross reserves reported in the consolidated GAAP financial statements $ 20,368,030 _________________________ (1) For statutory purposes, the Company discounts its workers’ compensation reinsurance reserves at 2.5% as prescribed or permitted by the Department of Insurance of the State of Delaware.
A reconciliation between the reserves as of December 31, 2025 as reported in the accompanying consolidated GAAP financial statements and those reported on the basis of statutory accounting principles (“SAP”) in the Company’s U.S. regulatory filings is as follows: (In thousands) Net reserves reported in U.S. regulatory filings on a SAP basis $ 17,994,572 Reserves for non-U.S. companies 1,055,260 Loss reserve discounting (1) (101,538) Ceded reserves 3,254,099 Allowance for expected credit losses on due from reinsurers 5,380 Gross reserves reported in the consolidated GAAP financial statements $ 22,207,773 _________________________ (1) For statutory purposes, the Company discounts its workers’ compensation reinsurance reserves at 2.5% as prescribed or permitted by the Department of Insurance of the State of Delaware.
Well-capitalized new entrants to the property and casualty insurance and reinsurance industries, or existing competitors that receive substantial infusions of capital, provide increasing competition, which may adversely impact our business and profitability.
These competitors include Swiss Re, Munich Re, Berkshire Hathaway, Hannover Re and others. Various institutional investors participate in the property and casualty insurance and reinsurance industries. Well-capitalized new entrants to the property and casualty insurance and reinsurance industries, or existing competitors that receive substantial infusions of capital, provide increasing competition, which may adversely impact our business and profitability.
The table below provides a reconciliation of the beginning of year and end of year property casualty reserves for the indicated years: (In thousands) 2024 2023 2022 Net reserves at beginning of year $ 15,661,820 $ 14,248,879 $ 12,848,362 Net provision for losses and loss expenses: Claims occurring during the current year (1) 7,083,999 6,311,780 5,774,713 Increase in estimates for claims occurring in prior years (2) 14,350 29,681 54,511 Loss reserve discount accretion 33,246 30,681 32,526 Total 7,131,595 6,372,142 5,861,750 Net payments for claims: Current year 1,278,585 1,217,078 1,068,577 Prior years 4,205,845 3,764,532 3,279,333 Total 5,484,430 4,981,610 4,347,910 Foreign currency translation (142,344) 22,409 (113,323) Net reserves at end of year 17,166,641 15,661,820 14,248,879 Ceded reserves at end of year 3,201,389 3,077,832 2,762,344 Gross reserves at end of year $ 20,368,030 $ 18,739,652 $ 17,011,223 Net change in premiums and losses occurring in prior years: Increase in estimates for claims occurring in prior years (2) $ (14,350) $ (29,681) $ (54,511) Retrospective premium adjustments for claims occurring in prior years (3) 18,782 10,782 18,106 Net premium and reserve development on prior years $ 4,432 $ (18,899) $ (36,405) ____________________________________ 16 (1) Claims occurring during the current year are net of loss reserve discounts of $49 million, $47 million and $35 million in 2024, 2023 and 2022, respectively.
The table below provides a reconciliation of the beginning of year and end of year property casualty reserves for the indicated years: (In thousands) 2025 2024 2023 Net reserves at beginning of year $ 17,166,641 $ 15,661,820 $ 14,248,879 Net provision for losses and loss expenses: Claims occurring during the current year (1) 7,702,638 7,083,999 6,311,780 Increase in estimates for claims occurring in prior years (2) 34,446 14,350 29,681 Loss reserve discount accretion 34,573 33,246 30,681 Total 7,771,657 7,131,595 6,372,142 Net payments for claims: Current year 1,375,478 1,278,585 1,217,078 Prior years 4,758,098 4,205,845 3,764,532 Total 6,133,576 5,484,430 4,981,610 Foreign currency translation 148,952 (142,344) 22,409 Net reserves at end of year 18,953,674 17,166,641 15,661,820 Ceded reserves at end of year 3,254,099 3,201,389 3,077,832 Gross reserves at end of year $ 22,207,773 $ 20,368,030 $ 18,739,652 Net change in premiums and losses occurring in prior years: Increase in estimates for claims occurring in prior years (2) $ (34,446) $ (14,350) $ (29,681) Retrospective premium adjustments for claims occurring in prior years (3) 37,692 18,782 10,782 Net premium and reserve development on prior years $ 3,246 $ 4,432 $ (18,899) ____________________________________ 18 (1) Claims occurring during the current year are net of loss reserve discounts of $56 million, $49 million and $47 million in 2025, 2024 and 2023, respectively.
It is expected that Colorado will further adopt governance and testing regulations for other lines of insurance. Similarly, in July 2024, the NYDFS issued Insurance Circular Letter 7 on the Use of Artificial Intelligence and External Consumer Data and Information Sources in Insurance Underwriting and Pricing, which applies to our insurance subsidiaries licensed in New York.
The Colorado Division of Insurance has indicated its intent to extend these regulations to other lines of insurance. Similarly, in July 2024, the NYDFS issued Insurance Circular Letter 7 on the Use of Artificial Intelligence and External Consumer Data and Information Sources in Insurance Underwriting and Pricing, which applies to our insurance subsidiaries licensed in New York.
The proposed amendments would expand the definition of nonpublic personal information; add consumer rights to request access, correction and deletion of nonpublic personal information; and add requirements for contracts with third-party service providers. The deadline to finalize the amendments was recently extended until December 31, 2025.
They would expand the definition of nonpublic personal information; add consumer rights to request access, correction and deletion of nonpublic personal information; and add requirements for contracts with third-party service providers.
EU member states have until the end of January 2027 to implement these amendments into their respective domestic legislation. 22 Solvency II provides for the supervision of group solvency.
Similarly, the EU’s legislative bodies have undertaken a review of Solvency II and have adopted revisions to the current Solvency II rules. EU member states have until the end of January 2027 to implement these amendments into their respective domestic legislation. Solvency II provides for the supervision of group solvency.
The NAIC and state insurance regulators are also focused on addressing unfair discrimination by insurers in the use of consumer data and technology, and certain states have passed laws or are considering action targeting unfair discrimination practices.
State insurance regulators are also focused on addressing unfair discrimination by insurers in the use of consumer data and technology.
The PRA will also perform separate, but comparable, supervision of group solvency under the U.K.’s own domestic prudential regime where a U.S. holding company is a parent of a subsidiary U.K. insurer or reinsurer. The Liechtenstein financial services regulator, the FMA, is the group supervisor for our European-regulated subsidiaries.
The PRA will also perform separate, but comparable, assessments of group solvency under the U.K.’s own domestic prudential regime in relation to a U.K. branch of a foreign insurer, including those of insurers that are regulated in the EEA. The Liechtenstein financial services regulator, the FMA, is the group supervisor for our European-regulated subsidiaries.
Insurers are therefore expected to reflect the consideration of the financial risks from climate change in their governance arrangements, including allocating responsibility for managing these risks to identified senior management and committees. 23 Insurers must also monitor and manage the financial risk posed by climate change as part of their risk management frameworks, which would involve scenario testing over a range of time horizons and reporting to the board on identified risks.
Insurers must also monitor and manage the financial risk posed by climate change as part of their risk management frameworks, which would involve scenario testing over a range of time horizons and reporting to the board on identified risks. Financial risks from climate change should also form part of insurers’ public regulatory disclosures.
Investments by our domestic insurance companies must comply with applicable laws and regulations which prescribe the kind, quality and concentration of investments. In general, these laws and regulations permit investments in federal, state and municipal obligations, corporate bonds, preferred and common equity securities, mortgage loans, real estate and certain other investments, subject to specified limits and certain other qualifications.
In general, these laws and regulations permit investments in federal, state and municipal obligations, corporate bonds, preferred and common equity securities, mortgage loans, real estate and certain other investments, subject to specified limits and certain other qualifications. Investments that do not comply with these limits and qualifications are deducted in our insurance subsidiaries' calculation of their statutory capital and surplus.
Additionally, the NAIC is developing amendments to update the Privacy of Consumer Financial and Health Information Regulation to reflect the extensive innovations in communications and technology since its adoption.
Additionally, the NAIC is drafting amendments to update its model Privacy of Consumer Financial and Health Information Regulation with a goal of adopting a revised model in 2026. Proposed updates reflect the extensive innovations in technology since the model regulation's initial adoption in 2020.
Trade Representative to enter into international agreements of mutual recognition regarding the prudential regulation of insurance or reinsurance. The U.S. and the European Union ("EU") signed such a covered agreement (the "EU Covered Agreement") in September 2017, which addresses three areas of prudential supervision: reinsurance, group supervision and the exchange of information between the U.S. and EU.
The U.S. and the European Union ("EU") signed such a covered agreement (the "EU Covered Agreement") in September 2017, which addresses three areas of prudential supervision: reinsurance, group supervision and the exchange of information between the U.S. and EU. In December 2018, the U.S. Department of the Treasury and the Office of the U.S.
In both general liability and professional lines, Admiral has a broad line of products to meet the needs of existing as well as emerging opportunities. The distribution of products is limited solely to wholesale brokers.
In both general liability and professional lines, Admiral has a broad line of products to meet the needs of existing as well as emerging opportunities. The distribution of products is limited to wholesale brokers. Berkley Accident and Health underwrites accident and health insurance and reinsurance products in four primary areas: medical stop loss, managed care, special risk and group captive.
We cannot currently predict the impact of these changes to the law or whether any other covered agreements will be successfully adopted, and cannot currently estimate the impact of these changes to the law and any such adopted covered agreements on our business, financial condition or operating results. 21 The Dodd-Frank Act authorizes the FSOC to designate an insurer as a “systemically important financial institution” or a “non-bank SIFI” if the insurer’s material financial distress could pose a systemic risk to the financial system or the nature or scale of its activities could pose a threat to U.S. financial stability.
The Dodd-Frank Act authorizes the FSOC to designate an insurer as a “systemically important financial institution” or a “non-bank SIFI” if the insurer’s material financial distress could pose a systemic risk to the financial system or the nature or scale of its activities could pose a threat to U.S. financial stability.
In November 2019, the International Association of Insurance Supervisors (“IAIS”), an international standard setter, adopted a global framework for the supervision of IAIGs, as discussed below under “International Regulation.” In December 2024, the IAIS adopted a risk-based, group-wide global insurance capital standard (“ICS”) applicable to IAIGs.
In November 2019, the International Association of Insurance Supervisors (“IAIS”), an international standard setter, adopted a global framework for the supervision of IAIGs, as discussed below under “International Regulation.” We received notice from the Delaware Department of Insurance in 2024 that we are considered an IAIG.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

63 edited+24 added−3 removed116 unchanged
Biggest changeRisks Relating to Our Investments A significant amount of our assets is invested in fixed maturity securities and is subject to market fluctuations. Our investment portfolio consists substantially of fixed maturity securities. As of December 31, 2024, our investment in fixed maturity securities was approximately $22.4 billion, or 75.0% of our total investment portfolio including cash and cash equivalents.
Biggest changeOur investment portfolio consists substantially of fixed maturity securities. As of December 31, 2025, our investment in fixed maturity securities was approximately $25.0 billion, or 75.3% of our total investment portfolio including cash and cash equivalents. As of that date, our portfolio of fixed maturity securities consisted of the following types of securities: U.S.
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: • Legislative and regulatory initiatives in response to pandemics may adversely affect us by, for example, retroactively mandating coverage for losses that our policies were not intended to cover. • A lthough the Company has estimated the potential COVID-19 impact to its contingency and event cancellation, workers’ compensation, and other lines of business under a number of possible scenarios, there remains uncertainty around COVID-19's ultimate impact on the Company and its related reserves . • Claims and coverage issues may emerge that extend coverage beyond our underwriting intent or increase the number and/or size of claims. • Our reinsurers may refuse to pay reinsurance recoverables due to uncertainty regarding reinsurance coverage for losses related to COVID-19 or any future pandemics.
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: • Legislative and regulatory initiatives in response to pandemics may adversely affect us by, for example, retroactively mandating coverage for losses that our policies were not intended to cover. • A lthough the Company has estimated the potential COVID-19 impact to its contingency and event cancellation, workers’ compensation, and other lines of business under a number of possible scenarios, there remains uncertainty around COVID-19's ultimate impact on the Company and its related reserves . 31 • Claims and coverage issues may emerge that extend coverage beyond our underwriting intent or increase the number and/or size of claims. • Our reinsurers may refuse to pay reinsurance recoverables due to uncertainty regarding reinsurance coverage for losses related to COVID-19 or any future pandemics.
Examples of emerging claims and coverage issues include, but are not limited to: • judicial expansion of policy coverage and a greater propensity to grant claimants more favorable amounts and the impact of new theories of liability; • plaintiffs targeting property and casualty insurers, including us, in purported class action litigation relating to claims-handling and other practices; • social inflation trends, including higher and more frequent claims, more favorable judgments and legislated increases; • medical developments that link health issues to particular causes, resulting in liability claims; • claims relating to unanticipated consequences of current or new technologies, including cyber security related risks; • claims relating to potentially changing climate conditions; and • increased claims due to third party funding of litigation.
Examples of emerging claims and coverage issues include, but are not limited to: 30 • judicial expansion of policy coverage and a greater propensity to grant claimants more favorable amounts and the impact of new theories of liability; • plaintiffs targeting property and casualty insurers, including us, in purported class action litigation relating to claims-handling and other practices; • social inflation trends, including higher and more frequent claims, more favorable judgments and legislated increases; • medical developments that link health issues to particular causes, resulting in liability claims; • claims relating to unanticipated consequences of current or new technologies, including cyber security related risks; • claims relating to potentially changing climate conditions; and • increased claims due to third party funding of litigation.
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 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.
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.
Our financial results could be adversely affected by acquired businesses not performing as projected, unforeseen liabilities, routine and unanticipated transaction-related charges, diversion of management time and resources to acquisition integration challenges or growth strategies, loss of key employees, challenges in integrating information technology systems of acquired companies with our own, amortization of expenses related to intangibles, charges 32 for impairment of long-term assets or goodwill and indemnification.
Our financial results could be adversely affected by acquired businesses not performing as projected, unforeseen liabilities, routine and unanticipated transaction-related charges, diversion of management time and resources to acquisition integration challenges or growth strategies, loss of key employees, challenges in integrating information technology systems of acquired companies with our own, amortization of expenses related to intangibles, charges for impairment of long-term assets or goodwill and indemnification.
This system of regulation, generally administered in the United States by a department of insurance in each state in which we do business, relates to, among other things: • standards of solvency, including risk-based capital measurements; • restrictions on the nature, quality and concentration of investments; • limitations on the amount of dividends, tax distributions, intercompany loans and other payments that can be made without prior regulatory approval; • requirements pertaining to certain methods of accounting; • evaluating enterprise risk to an insurer; • privacy, data protection, cybersecurity and artificial intelligence; • rate and form regulation pertaining to certain of our insurance businesses; • potential assessments for the provision of funds necessary for the settlement of covered claims under certain policies provided by impaired, insolvent or failed insurance companies; and 29 • involvement in the payment or adjudication of catastrophe or other claims beyond the terms of the policies.
This system of regulation, generally administered in the United States by a department of insurance in each state in which we do business, relates to, among other things: 32 • standards of solvency, including risk-based capital measurements; • restrictions on the nature, quality and concentration of investments; • limitations on the amount of dividends, tax distributions, intercompany loans and other payments that can be made without prior regulatory approval; • requirements pertaining to certain methods of accounting; • evaluating enterprise risk to an insurer; • privacy, data protection, cybersecurity and artificial intelligence; • rate and form regulation pertaining to certain of our insurance businesses; • potential assessments for the provision of funds necessary for the settlement of covered claims under certain policies provided by impaired, insolvent or failed insurance companies; and • involvement in the payment or adjudication of catastrophe or other claims beyond the terms of the policies.
In addition to those 25 described below, our businesses may also be adversely affected by risks and uncertainties not currently known to us or that we currently consider immaterial. Risks Relating to Our Industry Our results may fluctuate as a result of many factors, including cyclical changes in the insurance and reinsurance industry.
In addition to those described below, our businesses may also be adversely affected by risks and uncertainties not currently known to us or that we currently consider immaterial. Risks Relating to Our Industry Our results may fluctuate as a result of many factors, including cyclical changes in the insurance and reinsurance industry.
Changes in the value of the U.S. dollar relative to other currencies have had and could in the future have an adverse effect on our results of operations and financial condition. Our investments in non-U.S.-denominated assets are subject to fluctuations in non-U.S. securities and currency markets, and those markets can be volatile.
Changes in the value of the U.S. dollar relative to other currencies have had and could in the future have an adverse effect on our results of operations and financial condition. 34 Our investments in non-U.S.-denominated assets are subject to fluctuations in non-U.S. securities and currency markets, and those markets can be volatile.
We may be unable to maintain all required licenses and approvals and our business may not fully comply with the 30 wide variety of applicable laws and regulations or the relevant authority's interpretation of the laws and regulations. Also, some regulatory authorities have relatively broad discretion to grant, renew or revoke licenses and approvals.
We may be unable to maintain all required licenses and approvals and our business may not fully comply with the wide variety of applicable laws and regulations or the relevant authority's interpretation of the laws and regulations. Also, some regulatory authorities have relatively broad discretion to grant, renew or revoke licenses and approvals.
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.
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 37 condition, costly litigation, or other regulatory enforcement actions.
There may be certain asset classes that were in active markets with significant observable data that become illiquid 34 due to the then current financial environment. In such cases, the valuation of a greater number of our securities may require additional subjectivity and management judgment.
There may be certain asset classes that were in active markets with significant observable data that become illiquid due to the then current financial environment. In such cases, the valuation of a greater number of our securities may require additional subjectivity and management judgment.
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.
Additionally, our capital requirements and compliance requirements may be adversely affected if the European Commission does not deem the insurance 33 regulatory regimes of the jurisdictions outside the EU in which we have insurance or reinsurance companies domiciled to be “equivalent” to Solvency II.
This intense competition could cause the supply and/or demand for insurance or reinsurance to change, which affect our ability to price our products at attractive rates and retain existing business or write new products at adequate rates or on terms and conditions acceptable to us.
This intense competition could cause the supply and/or demand for insurance or reinsurance to change, which affect our ability to price our products at attractive rates and retain existing business or write new products at adequate rates or on terms 29 and conditions acceptable to us.
We also invest in real estate, financial services, energy, transportation and other investment funds. The values of these investments are subject to fluctuation based on changes in the economy and interest rates in general and the related asset valuations in particular.
We also invest in real estate, financial services, energy, transportation and other investment funds. The values of these investments are subject to fluctuation 39 based on changes in the economy and interest rates in general and the related asset valuations in particular.
These provisions may discourage potential acquisition proposals and may delay, deter or prevent a change in control of us through transactions, and in particular unsolicited transactions, that some or all of our stockholders might consider to be desirable.
These provisions may discourage potential acquisition proposals and may delay, deter or prevent a change in control of us through transactions, and in particular unsolicited transactions, that some or all of our stockholders might consider to be desirable. 41
We are subject to credit risk relating to our policyholders, independent agents and brokers. 31 In addition to exposure to credit risk related to our reinsurance recoverables and investment portfolio, we are exposed to credit risk in several other areas of our business, including credit risk relating to policyholders, independent agents and brokers.
We are subject to credit risk relating to our policyholders, independent agents and brokers. In addition to exposure to credit risk related to our reinsurance recoverables and investment portfolio, we are exposed to credit risk in several other areas of our business, including credit risk relating to policyholders, independent agents and brokers.
As of December 31, 2024, the amount due from our reinsurers was approximately $3,558 million, including amounts due from state funds and industry pools where it was intended that we would bear no risk. Certain of these amounts are secured by letters of credit or by funds held in trust on our behalf.
As of December 31, 2025, the amount due from our reinsurers was approximately $3,558 million, including amounts due from state funds and industry pools where it was intended that we would bear no risk. Certain of these amounts are secured by letters of credit or by funds held in trust on our behalf.
If conditions in the financial markets and the general economy are unfavorable, which may result from disruptions, uncertainty or volatility in the capital and credit markets, we may be unable to access debt or equity capital on acceptable terms if needed, which could have a negative impact on our ability to invest in our insurance company subsidiaries and/or to take advantage of opportunities to expand our business, such as the creation of new ventures and possible acquisitions, and inhibit our ability to refinance our existing indebtedness if we desire to do so, on terms acceptable to us.
Depending on conditions in the financial markets and the general economy, we may be unable to raise debt or equity capital if needed. 36 If conditions in the financial markets and the general economy are unfavorable, which may result from disruptions, uncertainty or volatility in the capital and credit markets, we may be unable to access debt or equity capital on acceptable terms if needed, which could have a negative impact on our ability to invest in our insurance company subsidiaries and/or to take advantage of opportunities to expand our business, such as the creation of new ventures and possible acquisitions, and inhibit our ability to refinance our existing indebtedness if we desire to do so, on terms acceptable to us.
Although we have taken steps intended to protect our data and information technology systems and mitigate the 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.
Although we have taken reasonable steps intended to protect our data and information technology systems, and to mitigate potential 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.
We may be subject to potentially increased federal oversight as a financial institution. In addition, the new 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.
We may be subject to potentially increased federal oversight as a financial institution. In addition, the current 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.
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, telecommunications or other computer systems could significantly impair our employees' ability to perform such functions on a timely basis.
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, telecommunications, other computer systems, or other critical infrastructure could significantly impair our employees' ability to perform such functions on a timely basis.
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 could be harmed.
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.
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 potential losses as a result of any acts of terrorism.
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 potentially significant losses as a result of any acts of terrorism.
At times, we have faced 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. Various types of investors seek to participate in the property and casualty insurance and reinsurance industries.
At times, we face 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. Various types of investors seek to participate in the property and casualty insurance and reinsurance industries.
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 33 development and deployment federally, across states, and internationally.
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.
However, the two regimes, and their respective requirements, have begun 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.
However, the two regimes, and their respective requirements, continue to diverge due to both the EU’s 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.
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.
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 on which we rely.
The payment of dividends by our insurance company subsidiaries is subject to regulatory restrictions and competitive pressures on maintaining financial strength ratings and will depend on the surplus and future earnings of these subsidiaries. During 2025, the maximum amount of dividends that can be paid without regulatory approval is approximately $1.6 billion.
The payment of dividends by our insurance company subsidiaries is subject to regulatory restrictions and competitive pressures on maintaining financial strength ratings and will depend on the surplus and future earnings of these subsidiaries. During 2026, the maximum amount of dividends that can be paid without regulatory approval is approximately $1.4 billion.
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 2024 earned premiums, our aggregate deductible under TRIPRA during 2025 is approximately $1,663 million.
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 2025 earned premiums, our aggregate deductible under TRIPRA during 2026 is approximately $1,835 million.
As a result, our ability to conduct our business could be materially and adversely affected. Use of artificial intelligence technologies by us or third-parties on which we rely could expose us to technological, security, legal, and other risks.
As a result, our ability to conduct our business could be materially and adversely affected. Our increasing investment in and use of artificial intelligence technologies or their use by third-parties on which we rely could expose us to technological, security, legal, and other risks.
The demand for insurance is influenced primarily by general economic conditions, while the supply of insurance is often directly related to available capacity based on the perceived profitability of the business.
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.
For example, current accident year catastrophe losses net of reinsurance recoveries were $298 million in 2024, $195 million in 2023, and $212 million in 2022. Similarly, man-made catastrophes can also have a material impact on our financial results.
For example, current accident year catastrophe losses net of reinsurance recoveries were $336 million in 2025, $298 million in 2024 and $195 million in 2023. Similarly, man-made catastrophes can also have a material impact on our financial results.
Best, Standard & Poor's, Moody's and Fitch. Our ratings are subject to periodic review, and we cannot assure you that we will be able to retain our current or any future ratings, especially given that rating agencies may change their criteria or increase capital requirements for various rating levels. If our ratings are reduced from their current levels by A.M.
Our ratings are subject to periodic review, and we cannot assure you that we will be able to retain our current or any future ratings, especially given that rating agencies may change their criteria or increase capital requirements for various rating levels. If our ratings are reduced from their current levels by A.M.
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.
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, particularly in the event of a recession.
Our merger arbitrage positions are exposed to the risk associated with the completion of announced deals, which are subject to regulatory as well as political and other risks. Real estate related investments, including directly owned, investment funds and loans receivable, were $1.9 billion, or 6.3% of our investment portfolio, including cash and cash equivalents, at December 31, 2024.
Our merger arbitrage positions are exposed to the risk associated with the completion of announced deals, which are subject to regulatory as well as political and other risks. Real estate related investments, including directly owned, investment funds and loans receivable, were $1.9 billion, or 5.7% of our investment portfolio, including cash and cash equivalents, at December 31, 2025.
Products or services offered that develop or adopt 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.
Products or services offered that develop or employ artificial intelligence (“AI”) technologies, including generative AI and machine learning, offer potential benefits (e.g., efficiency) but likewise may raise technological, security, legal and other risks and challenges that may adversely affect our operations, business, or reputation.
The fair value of fixed maturity securities generally decreases as interest rates rise. If a significant increase in interest rates were to occur, the fair value of our fixed maturity securities would be negatively impacted, while investment income earned from future investments in fixed maturity securities would be higher.
If a significant increase in interest rates were to occur, the fair value of our fixed maturity securities would be negatively impacted, while investment income earned from future investments in fixed maturity securities would be higher.
Our actual claims losses may exceed our reserves for claims, which may require us to establish additional reserves. Our gross reserves for losses and loss expenses were approximately $20.4 billion as of December 31, 2024. Our loss reserves reflect our best estimates of the cost of settling claims and related expenses with respect to insured events that have occurred.
Our actual claims losses may exceed our reserves for claims, which may require us to establish additional reserves. Our gross reserves for losses and loss expenses were approximately $22.2 billion as of December 31, 2025. Our loss reserves reflect our best estimates of the cost of settling claims and related expenses with respect to insured events that have occurred.
Indirect ownership includes ownership of the shares of our common stock. Thus, the insurance regulatory authorities of the states in which our insurance subsidiaries are domiciled are likely to apply these restrictions on acquisition of control to any proposed acquisition of our common stock.
Thus, the insurance regulatory authorities of the states in which our insurance subsidiaries are domiciled are likely to apply these restrictions on acquisition of control to any proposed acquisition of our common stock.
Pursuant to applicable laws and regulations, “control” over an insurer is generally presumed to exist if any person, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing 10% or more of 35 the voting securities of that insurer or any parent company of such insurer.
Pursuant to applicable laws and regulations, “control” over an insurer is generally presumed to exist if any person, directly or indirectly, owns, controls, holds the power to vote, or holds proxies representing 10% or more of the voting securities of that insurer or any parent company of such insurer. Indirect ownership includes ownership of the shares of our common stock.
We expect cybersecurity threats to continue to occur in the future and we are constantly managing efforts to infiltrate and compromise our systems and data.
We expect cybersecurity threats to continue to occur in the future and we are constantly responding to these threats to infiltrate and compromise our systems and data.
In addition, we may be unable to renew our reinsurance coverages or obtain other appropriate reinsurance covers with respect to pandemic-related exposures. • Reduced economic activity relating to potential pandemics is likely to decrease demand for our insurance products. • Disruptions in global financial markets due to future pandemics could cause us to incur investment losses. • Our operations could be disrupted if our senior management or a significant percentage of our workforce or of our agents, brokers, suppliers or other service providers are unable to continue to work because of illness, government directives or otherwise. 28 Changing climate conditions may alter the frequency and increase the severity of catastrophic events and thereby adversely affect our financial condition and results.
In addition, we may be unable to renew our reinsurance coverages or obtain other appropriate reinsurance covers with respect to pandemic-related exposures. • Reduced economic activity relating to potential pandemics is likely to decrease demand for our insurance products. • Disruptions in global financial markets due to future pandemics could cause us to incur investment losses. • Our operations could be disrupted if our senior management or a significant percentage of our workforce or of our agents, brokers, suppliers or other service providers are unable to continue to work because of illness, government directives or otherwise.
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. We, as a primary insurer, may have significant exposure for terrorist acts.
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 of operations.
In addition, we may be subject to negative publicity based on a failure or perceived failure to achieve various social responsibility initiatives and goals relating to diversity, equity and inclusion, and commitment to long-term sustainability we may announce from time to time, or based on an actual or perceived increase in related risks as a result of our or our industry’s business activities.
In addition, we may be subject to negative publicity based on a failure or perceived failure to achieve various social responsibility initiatives and goals relating to diversity, equity and inclusion, and commitment to long-term sustainability we may announce from time to time, or based on an actual or perceived increase in related risks as a result of our or our industry’s business activities. 38 Risks Relating to Our Investments A significant amount of our assets is invested in fixed maturity securities and is subject to market fluctuations.
Certain provisions in our organizational documents 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.
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.
These provisions include: • our classified board of directors and the ability of our board to increase its size and to appoint directors to fill newly created directorships; • 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; and • the need for advance notice in order to raise business or make nominations at stockholders' meetings.
These provisions include: • 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.
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.
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.
At December 31, 2024, our investment in these assets was approximately $5.5 billion, or 18.4%, of our investment portfolio, including cash and cash equivalents. Merger and arbitrage trading securities were $1.1 billion, or 3.8% of our investment portfolio, including cash and cash equivalents at December 31, 2024.
At December 31, 2025, our investment in these assets was approximately $5.6 billion, or 17.1%, of our investment portfolio, including cash and cash equivalents. Merger and arbitrage trading securities were $1.2 billion, or 3.7% of our investment portfolio, including cash and cash equivalents at December 31, 2025.
These competitors within the reinsurance market include Swiss Re, Munich Re, Berkshire Hathaway and Partner Re. We expect that perceived financial strength, in particular, will become more important as customers seek high quality reinsurers.
These competitors within the reinsurance market include Swiss Re, Munich Re, Berkshire Hathaway and Hannover Re. Perceived financial strength, in particular, is important as customers seek high quality reinsurers.
Best, Standard & Poor's, Moody's, and Fitch, and a decline in these ratings could affect our standing in the insurance industry and cause our sales and earnings to decrease. Ratings have become an increasingly important factor in establishing the competitive position of insurance companies. Certain of our insurance company subsidiaries are rated by A.M.
Ratings have become an increasingly important factor in establishing the competitive position of insurance companies. Certain of our insurance company subsidiaries are rated by A.M. Best, Standard & Poor's, Moody's and Fitch.
We face significant competitive pressures in our businesses, which can pressure premium rates in certain areas and could harm our ability to maintain or increase our profitability and premium volume in some parts of our business. We compete with a large number of other companies in our selected lines of business.
Rates for workers' compensation and certain professional liability lines of business continue to decrease. We face significant competitive pressures in our businesses, which can pressure premium rates in certain areas and could harm our ability to maintain or increase our profitability and premium volume in some parts of our business.
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.
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. Recently, insurance rates have generally moderated for many lines of business, particularly for property lines, which in some instances are experiencing rate decreases.
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.
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.
In cases where we receive letters of credit from banks as collateral and one of our counterparties is unable to honor its obligations, we are exposed to the credit risk of the banks that issued the letters of credit. We are rated by A.M.
In cases where we receive letters of credit from banks as collateral and one of our counterparties is unable to honor its obligations, we are exposed to the credit risk of the banks that issued the letters of credit. Our employees could take excessive risks, which could negatively affect our financial condition and business.
If we are unable to retain existing business or write new business at adequate rates or on terms and conditions acceptable to us, our results of operations could be materially and adversely affected. Recently, insurance prices have generally increased for most lines of business, excluding workers' compensation and certain professional liability lines of business.
If we are unable to retain existing business or write new business at adequate rates or on terms and conditions acceptable to us, our results of operations could be materially and adversely affected. Recently, insurance rate increases have generally moderated for many lines of business, particularly for property lines, which in some instances are experiencing rate decreases.
As a result, the full extent of liability under our insurance policies may not be known until many years after the policies are issued. 27 In addition, the potential passage of new legislation designed to expand the right to sue, to remove limitations on recovery, to extend the statutes of limitations or otherwise to repeal or weaken tort reforms could have an adverse impact on our business.
In addition, the potential passage of new legislation designed to expand the right to sue, to remove limitations on recovery, to extend the statutes of limitations or otherwise to repeal or weaken tort reforms could have an adverse impact on our business.
Our business is highly dependent on our ability to engage on a daily basis in a large number of insurance underwriting, claim processing and investment activities, many of which are highly complex.
We could be adversely affected if our controls to ensure compliance with guidelines, policies and legal and regulatory standards are not effective. Our business is highly dependent on our ability to engage on a daily basis in a large number of insurance underwriting, claim processing and investment activities, many of which are highly complex.
In some instances, these emerging issues may not become apparent for some time after we have issued the affected insurance policies.
In some instances, these emerging issues may not become apparent for some time after we have issued the affected insurance policies. As a result, the full extent of liability under our insurance policies may not be known until many years after the policies are issued.
As of that date, our portfolio of fixed maturity securities consisted of the following types of securities: U.S. Government securities (10.0%); state and municipal securities (10.5%); corporate securities (37.6%); asset-backed securities (17.3%); mortgage-backed securities (16.8%) and foreign government (7.8%). The fair value of these assets and the investment income from these assets fluctuate depending on general economic and market conditions.
Government securities (16.0%); state and municipal securities (7.4%); corporate securities (34.7%); asset-backed securities (15.2%); mortgage-backed securities (19.2%) and foreign government (7.5%). The fair value of these assets and the investment income from these assets fluctuate depending on general economic and market conditions. The fair value of fixed maturity securities generally decreases as interest rates rise.
However, loss costs have also increased and the duration and magnitude of the improved pricing environment remains uncertain. Despite higher interest rates, current price levels for certain lines of business 26 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.
Rates for workers' compensation and certain professional liability lines of business continue to decrease. Loss costs continue to increase, principally due to continued social inflation. Current 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.
A significant downgrade could result in a substantial loss of business as policyholders move to other companies with higher financial strength ratings. If market conditions cause reinsurance to be more costly or unavailable, we may be required to bear increased risks or reduce the level of our underwriting commitments.
If market conditions cause reinsurance to be more costly or unavailable, we may be required to bear increased risks or reduce the level of our underwriting commitments.
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 recently amended certain provisions in Solvency II, which EU member states will implement in their domestic regulation over the next two years.
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.
Moreover, because some AI technologies are relatively new, such as generative AI, many of the potential risks regarding their use are currently unknown. We could be adversely affected if our controls to ensure compliance with guidelines, policies and legal and regulatory standards are not effective.
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.
Removed
Over the past several years, premium rates have increased for most lines of business, while they have decreased in others, most notably workers' compensation and certain professional liability lines of business.
Added
Changing climate conditions may alter the frequency and increase the severity of catastrophic events and thereby adversely affect our financial condition and results of operations.
Removed
The COVID-19 pandemic, including the related impact on the U.S. and global economies, materially and adversely affected our results of operations.
Added
We, as a primary insurer, may have significant exposure to terrorist acts.
Removed
Depending on conditions in the financial markets and the general economy, we may be unable to raise debt or equity capital if needed.
Added
As described in “International Regulation” above, the EU has adopted amendments to certain provisions in Solvency II, which EU member states are in the process of implementing in their domestic regulation over 2025 and 2026.
Added
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.
Added
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.
Added
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.
Added
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.
Added
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.
Added
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.
Added
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.
Added
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.
Added
For example, catastrophe models that simulate loss estimates based on a set of assumptions are important tools used to estimate our exceedance probability curves.
Added
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.
Added
We run many model simulations in order to understand the impact of these assumptions on a catastrophe’s loss potential. 35 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.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Program’s security and risk policies and standards, implemented by either the Company or third party assessors or consultants, include: – information security management tools, such as firewalls, intrusion prevention and detection systems, anti-malware functionality, and access privilege controls; – vulnerability management, including penetration and control testing and vulnerability scans of information systems; 36 – incident monitoring, breach notification and escalation, including disaster recovery and incident response plans and resources; – risk based assessment of third party service providers; and – annual cybersecurity awareness training for employees and contractors.
Biggest changeThe Program’s security and risk policies and standards, implemented by either the Company or third party assessors or consultants, include: – information security management tools, such as firewalls, intrusion prevention and detection systems, anti-malware functionality, and access privilege controls; – vulnerability management, including penetration and control testing and vulnerability scans of information systems, and patching of systems when vulnerabilities have been identified; – incident monitoring, breach notification and escalation procedures, including disaster recovery and incident response plans and resources; – risk based assessment of third party service providers; and – annual cybersecurity awareness training for employees and contractors.
Collectively, the CISO and RISOs, along with their teams, in collaboration with the technology and business owners, implement the Program. Legal, Compliance, and Internal Audit functions also assess the Program’s adherence to regulatory requirements and internal controls.
Collectively, the CISO and RISOs, along with their teams, in collaboration with the technology and business owners, 42 implement the Program. Legal, Compliance, and Internal Audit functions also assess the Program’s adherence to regulatory requirements and internal controls.
The Program is modeled on the global standard for risk assessment, International Organization for Standardization 27001, and is guided by the six domains of cybersecurity established by the National Institute of Standards and Technology Cybersecurity Framework (i.e., govern, identify, protect, detect, respond, and recovery).
The Program is modeled on the global standard for information security management systems, International Organization for Standardization 27001, and is guided by the six domains of cybersecurity established by the National Institute of Standards and Technology Cybersecurity Framework (i.e., govern, identify, protect, detect, respond, and recovery).
The Program is designed to protect the confidentiality, integrity and availability of our information systems and assets that store, process, or transmit information.
The Program is designed to protect the confidentiality, integrity and availability of our information systems and assets that store, process, or transmit information, as well as the information processed thereon.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeRental expense for the Company's operations was approximately $45,718,000, $44,256,000 and $43,383,000 for 2024, 2023 and 2022, respectively. Future minimum lease payments, without provision for sublease income, are $48,822,000 in 2025, $41,861,000 in 2026 and $172,679,000 thereafter.
Biggest changeRental expense for the Company's operations was approximately $54,261,000, $45,718,000 and $44,256,000 for 2025, 2024 and 2023, respectively. Future minimum lease payments, without provision for sublease income, are $54,475,000 in 2026, $47,249,000 in 2027 and $220,860,000 thereafter.
ITEM 2. PROPERTIES W. R. Berkley Corporation and its subsidiaries own or lease office buildings or office space suitable to conduct their operations. At December 31, 2024, the Company had aggregate office space of 4,177,891 square feet, of which 1,051,681 were owned and 3,126,210 were leased.
ITEM 2. PROPERTIES W. R. Berkley Corporation and its subsidiaries own or lease office buildings or office space suitable to conduct their operations. At December 31, 2025, the Company had aggregate office space of 4,068,719 square feet, of which 1,093,057 were owned and 2,975,662 were leased.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeThe Company's estimates of the costs of settling such matters are reflected in its aggregate reserves for losses and loss expenses, and the Company does not believe that the ultimate outcome of such matters will have a material adverse effect on its financial condition or results of operations. 37 On December 22, 2023, one of the Company’s subsidiaries filed a lawsuit against certain reinsurers to recover in excess of $90 million in respect of certain losses paid to its policyholders under certain event cancellation and related insurance policies.
Biggest changeThe Company's estimates of the costs of settling such matters are reflected in its aggregate reserves for losses and loss expenses, and the Company does not believe that the ultimate outcome of such matters will have a material adverse effect on its financial condition or results of operations.
The Company believes its claims against the reinsurers are meritorious and expects a positive resolution to its lawsuit. While an adverse outcome is possible, the Company believes that the outcome, in any case, will not be material to the Company’s financial condition.
While an adverse outcome is possible, the Company believes that the outcome, in any case, will not be material to the Company’s financial condition.
Added
On December 22, 2023, one of the Company’s subsidiaries filed a lawsuit against certain reinsurers to recover in excess of $90 million in respect of certain losses paid to its policyholders under certain event cancellation and related insurance policies. The Company believes its claims against the reinsurers are meritorious and expects a positive resolution to its lawsuit.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeTotal Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that may yet be Purchased Under the Plans or Programs October 2024 715,920 $ 57.91 715,920 14,608,875 November 2024 449,947 57.69 449,947 14,158,928 December 2024 — — — 14,158,928 40
Biggest changeTotal Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that may yet be Purchased Under the Plans or Programs (1) October 2025 285,635 $ 70.99 285,635 12,673,293 November 2025 85,533 71.02 85,533 12,587,760 December 2025 2,497,858 68.07 2,497,858 10,089,902 (1) The Company's repurchase authorization was increased to 25,000,000 shares on January 8, 2026. 45
As of December 31, 2024 , the S&P 500® Property and Casualty Insurance Index consisted of The Allstate Corporation, Arch Capital Group Ltd. (added Nov. 2022), Chubb Limited, Cincinnati Financial Corporation, The Hartford Financial Services Group, Inc., Loews Corporation (CNA), The Progressive Corporation, The Travelers Companies, Inc., and W. R. Berkley Corporation. 2019 2020 2021 2022 2023 2024 W. R.
As of December 31, 2025 , the S&P 500® Property and Casualty Insurance Index consisted of The Allstate Corporation, Arch Capital Group Ltd. (added Nov. 2022), Chubb Limited, Cincinnati Financial Corporation, The Hartford Financial Services Group, Inc., Loews Corporation (CNA), The Progressive Corporation, The Travelers Companies, Inc., and W. R. Berkley Corporation. 2020 2021 2022 2023 2024 2025 W. R.
The approximate number of record holders of the common stock on February 13, 2025 was 327. 39 The chart below shows a comparison of 5 year cumulative total return. Comparison of 5 Year Cumulative Total Return Assumes initial investment of $100 on January 1, 2019, with dividends reinvested.
The approximate number of record holders of the common stock on February 23, 2026 was 312. 44 The chart below shows a comparison of 5 year cumulative total return. Comparison of 5 Year Cumulative Total Return Assumes initial investment of $100 on January 1, 2020, with dividends reinvested.
In 2024, the Board declared regular quarterly cash dividends of $0.07 per share in the first quarter and $0.08 per share in each of the remaining three quarters, as well as special dividends of $0.33 per share, $0.25 per share and $0.50 per share in the second, third, and fourth quarters, for a total of $532 million in aggregate dividends in 2024.
In 2025, the Board declared ordinary quarterly cash dividends of $0.08 per share in the first quarter and $0.09 per share in each of the remaining three quarters, as well as special dividends of $0.50 per share and $1.00 per share in the second and fourth quarters, respectively, for a total of $700 million in aggregate dividends in 2025.
Berkley Corporation Cum $ 100.00 96.85 123.32 165.10 165.50 210.49 S&P 500 Index - Total Returns Cum $ 100.00 118.38 152.33 124.65 157.48 196.49 S&P 500 Property and Casualty Insurance Index Cum $ 100.00 106.33 124.95 148.60 164.61 222.06 Set forth below is a summary of the shares repurchased by the Company during the fourth quarter of 2024 and the remaining number of shares authorized for purchase by the Company during such period.
Berkley Corporation Cum $ 100.00 127.33 170.47 170.88 217.34 267.30 S&P 500 Index - Total Returns Cum $ 100.00 128.68 105.30 133.03 165.98 195.63 S&P 500 Property and Casualty Insurance Index Cum $ 100.00 117.51 139.75 154.81 208.84 228.45 Set forth below is a summary of the shares repurchased by the Company during the fourth quarter of 2025 and the remaining number of shares authorized for purchase by the Company during such period.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe $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.
Biggest changeThe $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 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 favorable excess workers’ compensation development was driven by continued lower claim frequency and reported losses relative to expectations, and favorable claim settlements spread across many prior accident years.
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 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.
These claims also occur less frequently but tend to be larger than primary claims, which increases claim variability. In the case of assumed reinsurance 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.
These claims also occur less frequently but tend to be larger than primary claims, which increases claim variability. In the case of assumed reinsurance our 48 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.
However, management of the available for sale 55 portfolio is considered necessary to maintain an approximate matching of assets and liabilities as well as to adjust the portfolio as a result of changes in financial market conditions and tax considerations. The Company’s philosophy related to holding or selling fixed maturity securities is based on its objective of maximizing total return.
However, management of the available for sale portfolio is considered necessary to maintain an approximate matching of assets and liabilities as well as to adjust the portfolio as a result of changes in financial market conditions and tax considerations. The Company’s philosophy related to holding or selling fixed maturity securities is based on its objective of maximizing total return.
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. 45 Unfavorable prior year development (net of additional and return premiums) was $19 million in 2023.
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. Unfavorable prior year development (net of additional and return premiums) was $19 million in 2023.
Since these securities were priced based on observable data, they were classified as Level 2. 49 Cash flow model – If the above methodologies are not available, the Company prices securities using a discounted cash flow model based upon assumptions as to prevailing credit spreads, interest rates and interest rate volatility, time to maturity and subordination levels.
Since these securities were priced based on observable data, they were classified as Level 2. Cash flow model – If the above methodologies are not available, the Company prices securities using a discounted cash flow model based upon assumptions as to prevailing credit spreads, interest rates and interest rate volatility, time to maturity and subordination levels.
The Company does not retain underwriting risk, and credit risk is limited as ceded balances are jointly shared by all the pool members. 59 Off-Balance Sheet Arrangements An off-balance sheet arrangement is any transaction, agreement or other contractual arrangement involving an unconsolidated entity under which a company has (1) made guarantees, (2) a retained or contingent interest in transferred assets, (3) an obligation under derivative instruments classified as equity or (4) any obligation arising out of a material variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the Company, or that engages in leasing, hedging or research and development arrangements with the Company.
The Company does not retain underwriting risk, and credit risk is limited as ceded balances are jointly shared by all the pool members. 63 Off-Balance Sheet Arrangements An off-balance sheet arrangement is any transaction, agreement or other contractual arrangement involving an unconsolidated entity under which a company has (1) made guarantees, (2) a retained or contingent interest in transferred assets, (3) an obligation under derivative instruments classified as equity or (4) any obligation arising out of a material variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the Company, or that engages in leasing, hedging or research and development arrangements with the Company.
The unfavorable development for non-proportional reinsurance assumed liability and excess general liability was associated primarily with our U.S. assumed reinsurance business, and related to accounts reinsuring excess and umbrella business and construction projects. The adverse development was concentrated mainly in accident years 2017 through 2020.
The unfavorable development for non-proportional reinsurance assumed liability and excess general liability was associated primarily with our U.S. assumed reinsurance business, and related to accounts 51 reinsuring excess and umbrella business and construction projects. The adverse development was concentrated mainly in accident years 2017 through 2020.
Furthermore, due to 43 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.
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.
In making this assessment, the Company considers the extent to which fair value is less than amortized cost, changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among 47 other factors.
In making this assessment, the Company considers the extent to which fair value is less than amortized cost, changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors.
The Company believes that commercial auto-related claims are being particularly impacted by social inflation, which is contributing to an increase in the frequency of large losses beyond expectations.
The Company believes that commercial auto-related claims are being particularly 50 impacted by social inflation, which is contributing to an increase in the frequency of large losses beyond expectations.
Based on historical results and the prospects for future operations, management anticipates that it is more likely than not that future taxable income will be sufficient for the realization of this asset. 57 Reinsurance The Company follows customary industry practice of reinsuring a portion of its exposures in exchange for paying reinsurers a part of the premiums received on the policies it writes.
Based on historical results and the prospects for future operations, management anticipates that it is more likely than not that future taxable income will be sufficient for the realization of this asset. 61 Reinsurance The Company follows customary industry practice of reinsuring a portion of its exposures in exchange for paying reinsurers a part of the premiums received on the policies it writes.
Investment funds are primarily reported on a one-quarter lag. Real Estate . Real estate is directly owned property held for investment. At December 31, 2024, real estate properties in operation included a long-term ground lease in Washington D.C., an office complex in New York City and the completed portion of a mixed-use project in Washington D.C.
Investment funds are primarily reported on a one-quarter lag. Real Estate . Real estate is directly owned property held for investment. At December 31, 2025, real estate properties in operation included a long-term ground lease in Washington D.C., an office complex in New York City and the completed portion of a mixed-use project in Washington D.C.
Substantially all discounted workers’ compensation reserves (97% of total discounted reserves at December 31, 2024) are 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.
Substantially all discounted workers’ compensation reserves (97% of total discounted reserves at December 31, 2025) are 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.
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 December 31, 2024), including reserves for quota share reinsurance and reserves related to losses regarding occupational lung disease.
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 December 31, 2025), including reserves for quota share reinsurance and reserves related to losses regarding occupational lung disease.
(3) Reinsurance & Monoline Excess includes property and casualty reinsurance as well as certain program management business and operations that solely retain risk on an excess basis. 44 The Company evaluates reserves for losses and loss expenses on a quarterly basis. Changes in estimates of prior year losses are reported when such changes are made.
(3) Reinsurance & Monoline Excess includes property and casualty reinsurance as well as certain program management business and operations that solely retain risk on an excess basis. 49 The Company evaluates reserves for losses and loss expenses on a quarterly basis. Changes in estimates of prior year losses are reported when such changes are made.
The Company has not provided U.S. deferred income taxes on the undistributed earnings of approximately $481 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.
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.
In addition, the Company periodically performs independent price tests of a sample of securities to ensure proper valuation and to verify our understanding of how securities are priced. As of December 31, 2024, the Company did not make any adjustments to the prices provided by the pricing services.
In addition, the Company periodically performs independent price tests of a sample of securities to ensure proper valuation and to verify our understanding of how securities are priced. As of December 31, 2025, the Company did not make any adjustments to the prices provided by the pricing services.
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.
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.
In general, the model reverts to the rating-level long-term average marginal default rates based on 10 years of historical data, beyond the forecast period. For other inputs, the model in most cases reverts to the baseline long-term assumptions linearly over 5 years beyond the forecast period. The long-term assumptions are based on the historical averages.
In general, the model reverts to the rating-level long-term average marginal default rates based on 10 years of historical data, beyond the forecast period. For other inputs, the model in most cases reverts to the baseline long-term assumptions linearly over 5 years beyond the forecast period.
While providing our business units 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.
While providing our businesses 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.
The Company has no arrangements of these types that management believes may have a material current or future effect on our financial condition, liquidity or results of operations. 60
The Company has no arrangements of these types that management believes may have a material current or future effect on our financial condition, liquidity or results of operations. 64
These securities were classified as Level 3. 50 Results of Operations for the Years Ended December 31, 2024 and 2023 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 (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.
These securities were classified as Level 3. 54 Results of Operations for the Years Ended December 31, 2025 and 2024 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 (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.
Results of Operations for the Years Ended December 31, 2023 and 2022 For a comparison of the Company’s results of operations for the year ended December 31, 2023 to the year ended December 31, 2022, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission on February 23, 2024. 54 Investments As part of its investment strategy, the Company establishes a level of cash and highly liquid short-term and intermediate-term securities that, combined with expected cash flow, it believes is adequate to meet its payment obligations.
Results of Operations for the Years Ended December 31, 2024 and 2023 For a comparison of the Company’s results of operations for the year ended December 31, 2024 to the year ended December 31, 2023, see Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission on February 24, 2025. 58 Investments As part of its investment strategy, the Company establishes a level of cash and highly liquid short-term and intermediate-term securities that, combined with expected cash flow, it believes is adequate to meet its payment obligations.
The Company's investment portfolio is highly liquid, with approximately 82% invested in cash, cash equivalents and marketable fixed maturity securities as of December 31, 2024. If the sale of fixed maturity securities were to become necessary, a realized gain or loss equal to the difference between the cost and sales price of securities sold would be recognized. Debt .
The Company's investment portfolio is highly liquid, with approximately 83% invested in cash, cash equivalents and marketable fixed maturity securities as of December 31, 2025. If the sale of fixed maturity securities were to become necessary, a realized gain or loss equal to the difference between the cost and sales price of securities sold would be recognized. Debt .
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. We do not expect this to have a meaningful impact to tax expense.
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.
Estimated assumed premiums receivable were approximately $51 million and $65 million at December 31, 2024 and 2023, respectively. 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.
Estimated assumed premiums receivable were approximately $54 million and $51 million at December 31, 2025 and 2024, respectively. 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 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 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.
Merger arbitrage is the business of investing in the securities of publicly held companies that are the targets in announced tender offers and mergers. Loans Receivable. Loans receivable, net of allowance for expected credit losses, had both an amortized cost and an aggregate fair value of $405 million at December 31, 2024.
Merger arbitrage is the business of investing in the securities of publicly held companies that are the targets in announced tender offers and mergers. Loans Receivable. Loans receivable, net of allowance for expected credit losses, had both an amortized cost and an aggregate fair value of $419 million at December 31, 2025.
The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $405 million and $390 million at December 31, 2024 and 2023, respectively. At December 31, 2024, discount rates by year ranged from 0.7% to 6.5%, with a weighted average discount rate of 3.6%.
The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $420 million and $405 million at December 31, 2025 and 2024, respectively. At December 31, 2025, discount rates by year ranged from 0.7% to 6.5%, with a weighted average discount rate of 3.6%.
Following is a summary of significant property reinsurance treaties in effect as of January 1, 2025: ◦ The Company’s property per risk reinsurance generally covers losses between $2.5 million and $85 million. ◦ The Company’s property catastrophe excess of loss reinsurance program provides protection for business written by its Insurance segments and U.S. and non-U.S. business written by Lloyd's Syndicate, excluding offshore energy.
Following is a summary of significant property reinsurance treaties in effect as of January 1, 2026: ◦ The Company’s property per risk reinsurance generally covers losses between $2.5 million and $85 million. ◦ The Company’s property catastrophe excess of loss reinsurance program provides protection for business written by its Insurance businesses as well as U.S. and non-U.S. business written by Lloyd's Syndicate, excluding offshore energy.
Loans receivable are reported net of an allowance for expected credit losses of $1 million and $3 million as of December 31, 2024 and 2023, respectively. Fair Value Measurements . The Company’s fixed maturity available for sale securities, equity securities, and its trading account securities are carried at fair value.
Loans receivable are reported net of an allowance for expected credit losses of $0.2 million and $1 million as of December 31, 2025 and 2024, respectively. Fair Value Measurements . The Company’s fixed maturity available for sale securities, equity securities, and its trading account securities are carried at fair value.
The Company also attempts to maintain an appropriate relationship between the effective duration of the investment portfolio and the approximate duration of its liabilities (i.e., policy claims and debt obligations). The effective duration of the investment portfolio was 2.6 years and 2.4 years at December 31, 2024 and 2023, respectively.
The Company also attempts to maintain an appropriate relationship between the effective duration of the investment portfolio and the approximate duration of its liabilities (i.e., policy claims and debt obligations). The effective duration of the investment portfolio was 3.0 years and 2.6 years at December 31, 2025 and 2024, respectively.
The unfavorable development for commercial auto liability was concentrated in the 2021 accident year and related to commercial auto program business. Reserve Discount . The Company discounts its liabilities for certain workers’ compensation reserves. The amount of workers’ compensation reserves that were discounted was $1,358 million and $1,352 million at December 31, 2024 and 2023, respectively.
The unfavorable development for commercial auto liability was concentrated in the 2022 accident year and related to commercial auto program business. Reserve Discount . The Company discounts its liabilities for certain workers’ compensation reserves. The amount of workers’ compensation reserves that were discounted was $1,400 million and $1,358 million at December 31, 2025 and 2024, respectively.
Limits purchased are the difference between the corresponding retentions and $700 million. • Casualty reinsurance treaties - The Company purchases casualty reinsurance to reduce its exposure to large individual casualty losses and workers’ compensation catastrophe losses for the majority of business written by its U.S. companies.
Limits purchased are the difference between these retained amounts and $700 million. • Casualty reinsurance treaties - The Company purchases casualty reinsurance to reduce its exposure to large individual casualty losses and workers’ compensation catastrophe losses for the majority of business written by its U.S. companies.
Our workers’ compensation catastrophe reinsurance program is a shared cover for both excess and primary workers’ compensation business. • Facultative reinsurance - The Company also purchases facultative reinsurance on certain individual policies or risks that are in excess of treaty reinsurance capacity. • Other reinsurance - Depending on the business, the Company purchases specific additional reinsurance to supplement the above programs. • Lifson Re is expected to continue to be a participant on the majority of the Company’s reinsurance placements.
Our workers’ compensation catastrophe reinsurance program is a shared cover for both excess and primary workers’ compensation business. • Facultative reinsurance - The Company purchases facultative reinsurance on certain individual policies or risks that are in excess of treaty reinsurance capacity. • Other reinsurance - Depending on the business, the Company purchases specific additional reinsurance to supplement the above programs. • Lifson Re continues to participate on the majority of the Company’s reinsurance placements.
The maturities of the outstanding debt are $9 million in 2025, $250 million in 2037, $350 million in 2044, $470 million in 2050, $400 million in 2052, $185 million in 2058, $300 million in 2059, $250 million in 2060, and $650 million in 2061.
The maturities of the outstanding debt are $7 million in 2026, $250 million in 2037, $350 million in 2044, $470 million in 2050, $400 million in 2052, $185 million in 2058, $300 million in 2059, $250 million in 2060, and $650 million in 2061.
The loss ratio excluding catastrophe losses and prior year reserve development increased 0.2 points to 60.5% in 2024 from 60.3% in 2023. • Reinsurance & Monoline Excess - The loss ratio was 54.7% in 2024 and 54.3% in 2023. Catastrophe losses were $71 million in 2024 compared with $35 million in 2023.
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.
Premiums earned in 2024 are related to business written during both 2024 and 2023. Audit premiums were $350 million in 2024 compared with $363 million in 2023. Net Investment Income .
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 .
The amortized cost of loans receivable is net of an allowance for expected credit losses of $1 million as of December 31, 2024. Loans receivable include real estate loans of $402 million that are secured by commercial and residential real estate located primarily in the U.K. and New York.
The amortized cost of loans receivable is net of an allowance for expected credit losses of $0.2 million as of December 31, 2025. Loans receivable include real estate loans of $419 million that are secured by commercial and residential real estate located primarily in the U.K. and New York.
The Company also has a $36 million valuation allowance against the gross deferred tax asset and a gross deferred tax liability of $524 million (which primarily relates to deferred policy acquisition costs, and various investment funds) resulting in a net deferred tax asset of $155 million.
The Company also has a $56 million valuation allowance against the gross deferred tax asset and a gross deferred tax liability of $634 million (which primarily relates to deferred policy acquisition costs, and various investment funds) resulting in a net deferred tax asset of $42 million.
Approximately $3.3 billion, or 19.1%, of the Company’s net loss reserves as of December 31, 2024 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.
Approximately $3.4 billion, or 18.0%, of the Company’s net loss reserves as of December 31, 2025 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.
Ceded reinsurance premiums as a percentage of gross written premiums were 16% in both 2024 and 2023. Premiums earned increased 11% to $11,548 million in 2024 from $10,401 million in 2023. 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.
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.
If the Company is unable to renew or replace these reinsurance coverages, unexpired policies would not be protected, though we generally have the option to purchase run-off coverage in our treaties.
If the Company is unable to renew "losses occurring" reinsurance treaties, unexpired policies would not be protected, though we generally have the option to purchase run-off coverage in our treaties.
Effective January 1, 2025, Lifson Re participates in a 32.5% share of the placed amounts, increased from 30.0% in the prior year. This pertains to all traditional treaty reinsurance/retrocessional placements for both property and casualty business where there is more than one open market reinsurer participating.
As of January 1, 2026, Lifson Re participates in a 32.5% share of the placed amounts, consistent with the prior year. This pertains to all traditional treaty reinsurance/retrocessional placements for both property and casualty business where there is more than one open market reinsurer participating.
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.
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.
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. 51 Average renewal premium rates (per unit of exposure) for insurance and facultative reinsurance increased 6.9% in 2024 and 7.1% in 2023.
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. 55 Average renewal premium rates (per unit of exposure) for insurance and facultative reinsurance increased 6.7% in 2025 and 6.9% in 2024.
Net foreign currency gains were $52 million in 2024 compared to losses of $32 million in 2023, primarily due to the U.S. dollar strengthening against other major currencies in 2024.
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.
At December 31, 2024, the Company had senior notes, subordinated debentures and other debt outstanding with a carrying value of $2,841 million and a face amount of $2,864 million.
At December 31, 2025, the Company had senior notes, subordinated debentures and other debt outstanding with a carrying value of $2,840 million and a face amount of $2,862 million.
At December 31, 2024, the Company had a gross deferred tax asset of $715 million (which primarily relates to, loss and loss expense reserves, unearned premium reserves, employee compensation plans and unrealized losses on investments).
At December 31, 2025, the Company had a gross deferred tax asset of $732 million (which primarily relates to loss and loss expense reserves, unearned premium reserves and employee compensation plans).
Total Capital . Total capitalization (equity, debt and subordinated debentures) was $11.2 billion at December 31, 2024. The percentage of the Company’s capital attributable to senior notes, subordinated debentures and other debt was 25% and 28% at December 31, 2024 and 2023, respectively.
Total Capital . Total capitalization (equity, debt and subordinated debentures) was $12.5 billion at December 31, 2025. The percentage of the Company’s capital attributable to senior notes, subordinated debentures and other debt was 23% and 25% at December 31, 2025 and 2024, respectively.
Service expenses, which represent the costs associated with the fee-based businesses, was $91 million in 2024 compared to $92 million in 2023. 53 Net foreign currency (gains) losses result from transactions denominated in a currency other than a businesses’ functional currency.
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.
The ceded losses and loss expenses ratio decreased 7.0 points to 63% in 2024 from 70% in 2023. The following table presents the credit quality of amounts due from reinsurers as of December 31, 2024.
The ceded losses and loss expenses ratio decreased 3.5 points to 59.8% in 2025 from 63.3% in 2024. The following table presents the credit quality of amounts due from reinsurers as of December 31, 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, which applies in some countries commencing in 2024.
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.
Favorable prior year reserve development was $12 million in 2024 and $2 million in 2023. The loss ratio excluding catastrophe losses and prior year reserve development decreased 1.3 points to 50.6% in 2024 from 51.9% in 2023. Other Operating Costs and Expenses .
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. Other Operating Costs and Expenses .
Following is a summary of earned premiums and loss and loss expenses ceded to reinsurers for each of the three years ended December 31, 2024: Year Ended December 31, (In thousands) 2024 2023 2022 Earned premiums $ 2,163,213 $ 1,958,581 $ 1,883,263 Losses and loss expenses 1,368,279 1,376,144 1,269,338 58 Ceded earned premiums increased 10% in 2024 to $2,163 million.
Following is a summary of earned premiums and loss and loss expenses ceded to reinsurers for each of the three years ended December 31, 2025: Year Ended December 31, (In thousands) 2025 2024 2023 Earned premiums $ 2,342,241 $ 2,163,213 $ 1,958,581 Losses and loss expenses 1,400,570 1,368,279 1,376,144 62 Ceded earned premiums increased 8% in 2025 to $2,342 million.
The aggregate cost of the repurchases was $304 million in 2024 and $537 million in 2023.
The aggregate cost of the repurchases was $270 million in 2025 and $304 million in 2024.
Favorable prior year reserve development (net of premium offsets) was $4 million in 2024 and adverse prior year reserve development was $19 million in 2023 (refer to Note 13 of our consolidated financial statements for more detail). The loss ratio excluding catastrophe losses and prior year reserve development were 59.2% in both 2024 and 2023.
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.
Policy acquisition and insurance operating expenses increased 12% and net premiums earned increased 11% from 2023. The expense ratio (policy acquisition and insurance operating expenses expressed as a percentage of net premiums earned) increased by 0.1 points to 28.5% in 2024 from 28.4% in 2023.
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.
(In thousands, except per share data) 2024 2023 Net income to common stockholders $ 1,756,115 $ 1,381,359 Weighted average diluted shares 403,224 409,948 Net income per diluted share $ 4.36 $ 3.37 The Company reported net income of $1,756 million in 2024 and $1,381 million in 2023.
(In thousands, except per share data) 2025 2024 Net income to common stockholders $ 1,779,403 $ 1,756,115 Weighted average diluted shares 399,861 403,224 Net income per diluted share $ 4.45 $ 4.36 The Company reported net income of $1,779 million in 2025 and $1,756 million in 2024.
In 2024, the Board declared regular quarterly cash dividends of $0.07 per share in the first quarter and $0.08 per share in each of the remaining three quarters, as well as special dividends of $0.33 per share, $0.25 per share and $0.50 per share in the second, third, and fourth quarters, respectively, for a total of $532 million in aggregate dividends in 2024.
In 2025, the Board declared ordinary quarterly cash dividends of $0.08 per share in the first quarter and $0.09 per share in each of the remaining three quarters, as well as special dividends of $0.50 per share and $1.00 per share in the second and fourth quarters, respectively, for a total of $700 million in aggregate dividends in 2025.
The income tax will be based on a statutory tax rate of 15% on Bermuda businesses, subject to reductions for foreign tax credits, and will be effective for fiscal years beginning on or after January 1, 2025. The legislation does not have a material impact on our income tax position. We will continue to evaluate tax legislation developments during 2025.
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.
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 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.
Expenses from non-insurance businesses decreased to $513 million in 2024 from $525 million in 2023, primarily due to the aviation-related business and promotional merchandise business. Interest Expense . Interest expense was $127 million in both 2024 and 2023. Income Taxes. The effective income tax rate was 22.5% in 2024 and 21.1% in 2023.
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.
Loss development factors are based on the historical emergence patterns of paid and incurred losses, and are derived from the Company’s own experience and industry data. The paid loss emergence pattern is also significant to excess and assumed workers’ compensation reserves because those reserves are discounted to their estimated present value based upon such estimated payout patterns.
The paid loss emergence pattern is also significant to excess and assumed workers’ compensation reserves because those reserves are discounted to their estimated present value based upon such estimated payout patterns.
Following is a summary of other operating costs and expenses: (In thousands) 2024 2023 Policy acquisition and insurance operating expenses $ 3,294,902 $ 2,954,686 Insurance service expenses 90,640 91,714 Net foreign currency (gains) losses (52,376) 31,799 Other costs and expenses 269,140 285,737 Total $ 3,602,306 $ 3,363,936 Policy acquisition and insurance operating expenses are comprised of commissions paid to agents and brokers, premium taxes and other assessments and internal underwriting costs.
Following is a summary of other operating costs and expenses: (In thousands) 2025 2024 Policy acquisition and insurance operating expenses $ 3,516,524 $ 3,294,902 Insurance service expenses 94,374 90,640 Net foreign currency losses (gains) 68,006 (52,376) Other costs and expenses 297,930 269,140 Total $ 3,976,834 $ 3,602,306 Policy acquisition and insurance operating expenses are comprised of commissions paid to agents and brokers, premium taxes and other assessments and internal underwriting costs.
At December 31, 2024, the carrying value of investment funds was $1,468 million, including investments in financial services funds of $430 million, other funds of $379 million (which includes a deferred compensation trust asset of $38 million), transportation funds of $286 million, real estate funds of $179 million, infrastructure funds of $151 million and energy funds of $43 million.
At December 31, 2025, the carrying value of investment funds was $1,362 million, including investments in financial services funds of $360 million, other funds of $354 million (which includes a deferred compensation trust asset of $43 million), transportation funds of $273 million, infrastructure funds of $170 million, real estate funds of $163 million and energy funds of $42 million.
The principal uses of cash are payments for claims, taxes, operating expenses and dividends. The Company expects its insurance subsidiaries to fund the payment of losses with cash received from premiums, investment income and fees.
The Company expects its insurance subsidiaries to fund the payment of losses with cash received from premiums, investment income and fees.
A summary of loss ratios in 2024 compared with 2023 by business segment follows: • Insurance - The loss ratio was 62.8% in 2024 and 62.3% in 2023. Catastrophe losses were $227 million in 2024 compared with $160 million in 2023.
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.
Net prior year development (i.e, the sum of prior year reserve changes and prior year earned premiums changes) for each of the last three years ended December 31, are as follows: (In thousands) 2024 2023 2022 Increase in prior year loss reserves $ (14,350) $ (29,681) $ (54,511) Increase in prior year earned premiums 18,782 10,782 18,106 Net favorable (unfavorable) prior year development $ 4,432 $ (18,899) $ (36,405) The ultimate net impact of COVID-19 on the Company's reserves remains uncertain.
Net prior year development (i.e., the sum of prior year reserve changes and prior year earned premiums changes) for each of the last three years ended December 31, are as follows: (In thousands) 2025 2024 2023 Increase in prior year loss reserves $ (34,446) $ (14,350) $ (29,681) Increase in prior year earned premiums 37,692 18,782 10,782 Net favorable (unfavorable) prior year development $ 3,246 $ 4,432 $ (18,899) Favorable prior year development (net of additional and return premiums) was $3 million in 2025.
In 2024, the gains reflected a change in unrealized gains on equity securities of $121 million, partially offset by net realized losses on investments of $41 million. In 2023, the gains reflected a change in unrealized gains on equity securities of $71 million, partially offset by net realized losses on investments of $23 million.
The gains 56 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.
As of December 31, 2024, there were no borrowings outstanding under the facility. Equity . At December 31, 2024, total common stockholders’ equity was $8.4 billion, common shares outstanding were 380,066,070 and stockholders’ equity per outstanding share was $22.09. The Company repurchased 5,702,996 and 13,061,514 shares of its common stock in 2024 and 2023, respectively.
As of December 31, 2025, there were no borrowings outstanding under the facility. Equity . At December 31, 2025, total common stockholders’ equity was $9.7 billion, common shares outstanding were 377,155,799 and stockholders’ equity per outstanding share was $25.72. The Company repurchased 4,069,026 and 5,702,996 shares of its common stock in 2025 and 2024, respectively.
The Company classifies its fixed maturity securities by credit rating, primarily based on ratings assigned by credit rating agencies. For purposes of classifying securities with different ratings, the Company uses the average of the credit ratings assigned, unless in limited situations the Company’s own analysis indicates an internal rating is more appropriate.
For purposes of classifying securities with different ratings, the Company uses the average of the credit ratings assigned, unless in limited situations the Company’s own analysis indicates an internal rating is more appropriate. Securities that are not rated by a rating agency are evaluated and classified by the Company on a case-by-case basis.
Securities that are not rated by a rating agency are evaluated and classified by the Company on a case-by-case basis. A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at December 31, 2024 is presented in the table below.
A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at December 31, 2025 is presented in the table below.
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 decreased to $269 million in 2024 from $286 million in 2023, primarily due to lower new start-up operating unit expenses in 2024.
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.
Following is a summary of net investment income (loss) for the years ended December 31, 2024 and 2023: Amount Average Annualized Yield (In thousands) 2024 2023 2024 2023 Fixed maturity securities, including cash and cash equivalents and loans receivable $ 1,260,429 $ 929,098 5.3 % 4.4 % Arbitrage trading account 69,573 69,369 5.8 5.7 Equity securities 48,920 55,726 5.0 5.1 Investment funds (11,491) 16,743 (0.7) 1.0 Real estate (23,616) (11,185) (1.8) (0.9) Gross investment income 1,343,815 1,059,751 4.6 4.0 Investment expenses (10,654) (6,916) — — Total $ 1,333,161 $ 1,052,835 4.6 % 4.0 % 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 in investment expenses.
Following is a summary of net investment income (loss) for the years ended December 31, 2025 and 2024: Amount Average Annualized Yield (In thousands) 2025 2024 2025 2024 Fixed maturity securities, including cash and cash equivalents and loans receivable $ 1,307,087 $ 1,260,429 4.9 % 5.3 % Arbitrage trading account 74,407 69,573 6.5 5.8 Equity securities 50,529 48,920 5.3 5.0 Investment funds 27,582 (11,491) 1.9 (0.7) Real estate (18,450) (23,616) (1.4) (1.8) Gross investment income 1,441,155 1,343,815 4.6 4.6 Investment expenses (12,088) (10,654) — — Total $ 1,429,067 $ 1,333,161 4.5 % 4.6 % 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.
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.
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.
For 2025, some of our property catastrophe reinsurance is placed via industry loss warranty (ILW) covers and the equivalent W. R. Berkley limit and retention (and resulting net position) are estimated based on our market share and modeled outcome when applying the ILW layering. Retentions by territory and peril range between $46.3 million and $74.0 million.
For 2026, some of our property catastrophe reinsurance is placed via an industry loss warranty ("ILW") cover and the equivalent Company limit and retention (and resulting net position) are estimated based on our market share and modeled outcome when applying the ILW layering.
Examples of changes in terms and conditions that can have a significant impact on reserve levels are the use of aggregate policy limits, the expansion of coverage exclusions, whether or not defense costs are within policy limits, and changes in deductibles and attachment points. 42 The key assumptions used to arrive at the best estimate of loss reserves are the expected loss ratios, rate of loss cost inflation, and reported and paid loss emergence patterns.
Examples of changes in terms and conditions that can have a significant impact on reserve levels are the use of 47 aggregate policy limits, the expansion of coverage exclusions, whether or not defense costs are within policy limits, and changes in deductibles and attachment points.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe following table outlines the groups of fixed maturity securities and their effective duration at December 31, 2024: Effective Duration ($ in thousands) (Years) Fair Value Mortgage-backed securities 4.3 $ 3,767,851 U.S. government and government agencies 3.7 2,235,341 State and municipal 2.7 2,338,256 Foreign government 2.7 1,755,325 Corporate 2.6 8,417,641 Loans receivable 2.4 405,248 Asset-backed securities 1.4 3,885,012 Cash and cash equivalents 0.0 1,404,931 Total 2.6 $ 24,209,605 Duration is a common measure of the price sensitivity of fixed maturity securities to changes in interest rates.
Biggest changeThe following table outlines the groups of fixed maturity securities and their effective duration at December 31, 2025: Effective Duration ($ in thousands) (Years) Fair Value U.S. government and government agencies 4.7 $ 3,998,038 Mortgage-backed securities 4.3 4,810,392 Corporate 3.0 8,687,411 Foreign government 2.9 1,875,589 State and municipal 2.7 1,866,758 Loans receivable 2.4 419,074 Asset-backed securities 1.3 3,810,346 Cash and cash equivalents 0.0 1,957,438 Total 3.0 $ 27,425,046 Duration is a common measure of the price sensitivity of fixed maturity securities to changes in interest rates.
The Company's merger arbitrage securities are primarily exposed to the risk of completion of announced deals, which are subject to regulatory as well as transactional and other risks. 61
The Company's merger arbitrage securities are primarily exposed to the risk of completion of announced deals, which are subject to regulatory as well as transactional and other risks. 65
The effective duration for the fixed maturity portfolio (including cash and cash equivalents) was 2.6 years and 2.4 years at December 31, 2024 and 2023, respectively. In addition, the fair value of the Company’s international investments is subject to currency risk. The Company attempts to manage its currency risk by matching its foreign currency assets and liabilities where considered appropriate.
The effective duration for the fixed maturity portfolio (including cash and cash equivalents) was 3.0 years and 2.6 years at December 31, 2025 and 2024, respectively. In addition, the fair value of the Company’s international investments is subject to currency risk. The Company attempts to manage its currency risk by matching its foreign currency assets and liabilities where considered appropriate.
The estimated fair value at specified levels at December 31, 2024 would be as follows: (In thousands) Estimated Fair Value Change in Fair Value Change in interest rates: 300 basis point rise $ 22,258,604 $ (1,951,001) 200 basis point rise 22,898,254 (1,311,351) 100 basis point rise 23,555,609 (653,996) Base scenario 24,209,605 — 100 basis point decline 24,827,143 617,538 200 basis point decline 25,393,892 1,184,287 300 basis point decline 25,928,699 1,719,094 Arbitrage investing differs from other types of investments in that its focus is on transactions and events believed likely to bring about a change in value over a relatively short time period (usually four months or less).
The estimated fair value at specified levels at December 31, 2025 would be as follows: (In thousands) Estimated Fair Value Change in Fair Value Change in interest rates: 300 basis point rise $ 24,844,553 $ (2,580,493) 200 basis point rise 25,687,653 (1,737,393) 100 basis point rise 26,564,356 (860,690) Base scenario 27,425,046 — 100 basis point decline 28,182,512 757,466 200 basis point decline 28,826,079 1,401,033 300 basis point decline 29,451,916 2,026,869 Arbitrage investing differs from other types of investments in that its focus is on transactions and events believed likely to bring about a change in value over a relatively short time period (usually four months or less).

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