W. R. Berkley (WRB) 10-K risk factor changes: FY2020 vs FY2019

We face significant competitive pressures in our businesses, which have pressured premium rates in certain areas and could harm our ability to maintain or increase our profitability and premium [removed: volume.][added: volume in some parts of our business.]

In recent years, the insurance industry has undergone consolidation, which may further increase [removed: competition.][added: competition in some parts of our business.]

We expect to continue to face strong competition in [removed: these and our other lines] [added: some parts] of [added: our] business.

In addition, technology companies or other third parties have created, and may in the future create, technology-enabled business models, processes, platforms or alternate distribution channels that may adversely impact our competitive [removed: position.][added: position in some parts of our business.]

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 [added: and conditions acceptable to us.]

Our gross reserves for losses and loss expenses were approximately [removed: $12.6] [added: $13.8] billion as of December 31, [removed: 2019.][added: 2020.]

[removed: | • |] [added: -] judicial expansion of policy coverage and a greater propensity to grant claimants more favorable amounts and the impact of new theories of liability; [removed: |]

[removed: | • |] [added: -] plaintiffs targeting property and casualty insurers, including us, in purported class action litigation relating to claims-handling and other practices; [removed: |]

[removed: | • |] [added: -] social inflation trends, including higher and more frequent claims, more favorable judgments and legislated increases; [removed: |]

[removed: | • |] [added: -] medical developments that link health issues to particular causes, resulting in liability claims; [removed: |]

[removed: | • |] [added: -] claims relating to unanticipated consequences of current or new technologies, including cyber security related risks; [removed: |]

[removed: | • |] [added: -] claims relating to potentially changing climate conditions; and [removed: |]

[removed: | • |] [added: -] increased claims due to third party funding of litigation. [removed: |]

[removed: For] example, catastrophe losses net of reinsurance recoveries were [removed: $90] [added: $340] million in [removed: 2019, $105] [added: 2020 (including COVID-19 related losses), $90] million in [removed: 2018,] [added: 2019,] and [removed: $184] [added: $105] million in [removed: 2017.][added: 2018.]

Catastrophes can be caused by various events, including hurricanes, windstorms, earthquakes, tsunamis, hailstorms, explosions, severe winter weather and fires, [added: pandemics,] as well as terrorist and other man-made activities, including drilling, mining and other industrial accidents, cyber events or terrorist activities.

Changing climate conditions may [removed: increase] [added: alter] the frequency and [added: increase the] severity of catastrophic events and thereby adversely affect our financial condition and results.

There is a growing scientific consensus that global warming and other climate change are [removed: increasing] [added: altering] the [removed: frequency and] [added: frequency,] severity [added: and/or peril characteristics] of catastrophic weather events, such as hurricanes, [removed: tornadoes,] windstorms, floods and other natural disasters.

To the extent an act of terrorism, whether a domestic or foreign act, is certified by the Secretary of Treasury, we may be covered under the Terrorism Risk Insurance Program Reauthorization Act of [removed: 2015] [added: 2019] (“TRIPRA”), for up to [removed: 81%] [added: 80%] of our covered losses [removed: as of January 1, 2020] for certain property/casualty lines of insurance.

Based on our [removed: 2019] [added: 2020] earned premiums, our aggregate deductible under TRIPRA during [removed: 2020] [added: 2021] is approximately [removed: $993] [added: $1,014] million.

[removed: | • |] [added: -] standards of solvency, including risk-based capital measurements; [removed: |]

[removed: | • |] [added: -] restrictions on the nature, quality and concentration of investments; [removed: |]

[removed: | • |] [added: -] requirements pertaining to certain methods of accounting; [removed: |]

[removed: | • |] [added: -] evaluating enterprise risk to an insurer; [removed: |]

[removed: | • |] [added: -] rate and form regulation pertaining to certain of our insurance businesses; [removed: |]

[removed: | • |] [added: -] 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 [removed: |]

[removed: | • |] [added: -] involvement in the payment or adjudication of catastrophe or other claims beyond the terms of the policies. [removed: |]

Our business could be affected by changes, whether as a result of [added: potential changes to] the Dodd-Frank [removed: Act or otherwise,] [added: Act,] to the U.S. system of insurance regulation or our designation or the designation of insurers or reinsurers with which we do business as systemically significant non-bank financial companies.

In addition, the [removed: current] [added: change in the U.S.] administration and the volatile political environment may increase the chance of other federal legislative and regulatory changes that could affect us in ways we cannot predict.

If our compliance with Solvency [removed: II] [added: II, the U.K.’s prudential regime] or any other regulatory regime is challenged, we may be subject to monetary or other penalties.

We may be unable to maintain all required licenses and approvals and our business may not fully comply with the wide [removed: variety of applicable laws and regulations or the relevant authority's interpretation of the laws and regulations.]

In accordance with the [removed: Withdrawal Agreement] [added: withdrawal agreement] implementing [removed: Brexit,] the U.K. [added: leaving the EU (“Brexit”), the U.K.] formally left the EU on January 31, 2020.

The [removed: Withdrawal Agreement provides] [added: agreement provided] for a transitional [removed: period ending] [added: period, which ended] on December 31, 2020, during which time the U.K. [removed: will continue] [added: continued] to enjoy the same rights and obligations as it had as a member state, though without participating in the EU institutions.

During the transitional period, the U.K. and the EU [removed: are expected to negotiate] [added: negotiated] a long-term agreement covering, among other things, the terms of trade between them, [removed: which will be based on the principles set out] [added: culminating] in the [removed: accompanying Political Declaration.][added: execution of the entry into a “Trade and Cooperation Agreement”.]

[removed: Such] [added: More generally,] barriers to trade [added: resulting from Brexit] could affect the attractiveness of the U.K. and impact our U.K. business.

Our reinsurers may not pay the reinsurance recoverables that they owe to us or they may not pay [removed: such recoverables on a timely basis.]

As of December 31, [removed: 2019,] [added: 2020,] the amount due from our reinsurers was approximately [removed: $2,134] [added: $2,425] million, including amounts due from state funds and industry pools where it was intended that we would bear no risk.

In cases where we receive pledged securities and the applicable counterparty is unable to honor [added: its obligations, we may be exposed to credit risk on the securities pledged and/or the risk that our access to that collateral may be stayed as a result of bankruptcy.]

As part of our present strategy, we continue to evaluate possible acquisition transactions and the start-up of complementary businesses on an ongoing basis, and at any given time we may be engaged in discussions with respect to [removed: possible acquisitions and new ventures.]

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 [added: 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.]

Our failure to [added: effectively] protect sensitive personal and our proprietary information, whether owing to breaches of our own systems or those of our vendors, could result in significant monetary and reputational [removed: damages.][added: damages, costly litigation, or other regulatory enforcement actions.]

For

The COVID-19 pandemic has materially and adversely affected our results of operations, and is expected to continue and therefore may materially and adversely affect, our results of operations, financial position and liquidity.

The ongoing COVID-19 pandemic, including the related impact on the U.S. and global economies, has materially and adversely affected our results of operations.

We expect the pandemic and its impact on our business to continue, and potentially even worsen, but we cannot predict the magnitude or duration of its continued impact, particularly given the great uncertainties associated with COVID-19, including regarding the reopening of the U.S. and global economies and the recovery from its devastating economic and other effects.

The ultimate impact of COVID-19 on our results of operations, financial position and liquidity is not yet known, and likely will not be known for some time, but includes the following:

Adverse Legislative and Regulatory Action.

Legislative and regulatory initiatives taken or which may be taken in response to COVID-19 may adversely affect us, particularly in our workers’ compensation and property coverages businesses.

For example, our business may be subject to, certain initiatives, including, but not limited to: legislative and regulatory action that seeks to retroactively mandate coverage for losses that our insurance policies would not otherwise cover and which were not priced to cover; legislative and regulatory action providing for shifting presumptions with respect to the burdens of proof for “essential” workers on workers’ compensation coverages and varying definitions of “essential” workers; actions prohibiting us from cancelling insurance policies in accordance with our policy terms or non-renewing policies at their natural expiration; and/or orders to provide premium refunds, grant extended grace periods for premium payments, and provide extended time to pay past due premiums.

Any such action would likely increase both our underwriting losses and our expenses and any legal challenges to any such action could take years to resolve.

Claim Losses Related to COVID-19 May Exceed Reserves.

As of December 31, 2020, we recorded approximately $171 million for COVID-19-related losses, net of applicable reinsurance, and reinstatement premiums of approximately $18 million.

Of the $171 million of COVID-19-related losses, $95 million are reported losses and $76 million is booked as IBNR.

Our reserves do not represent an exact calculation of liability, but represent an estimate of what management expects the ultimate settlement and claims administration will cost for claims that have occurred, whether known or unknown.

Given the great uncertainties associated with COVID-19 and its impact and the limited information upon which our current assumptions and assessments have been made, our reserves and the underlying estimated level of claim losses and costs arising from COVID-19 may materially change.

Claim Losses and Adjustment Expenses May Increase.

As the effects of COVID-19 on industry practices and economic, legal, judicial, social and other environmental conditions occur, unexpected and unintended issues related to claims and coverages may emerge.

These issues may adversely affect our business by extending coverage beyond our underwriting intent (including in the area of property coverages where physical damage requirements and communicable disease exclusions are currently being challenged) or by increasing the number and/or size of claims, each of which could adversely impact our results.

Reinsurance.

We purchase reinsurance in order to transfer part of the risk that we have assumed by writing insurance policies to reinsurance companies in exchange for part of the premium we receive in connection with assuming such risk.

Although reinsurance makes the reinsurer contractually liable to us to the extent the risk is transferred to the reinsurer, it does not relieve us of our liability to our policyholders.

There may be uncertainty surrounding the availability of reinsurance coverage for COVID-19-related losses as our reinsurers may dispute the applicability of reinsurance to such losses (including the application of reinsurance reinstatements) and, as a result, our reinsurers may refuse to pay reinsurance recoverables related thereto or they may not pay them on a timely basis.

In addition, we may be unable to renew our current reinsurance coverages

or obtain appropriate new reinsurance covers with respect to certain exposures under our policies, including COVID-19-related exposures, and therefore our net exposures could increase, or if we are unwilling to bear such increase in net exposure, we may reduce our level of underwriting commitments.

Premium Volumes May Be Negatively Impacted.

The demand for insurance is significantly influenced by general economic conditions.

Consequently, reduced economic activity relating to the COVID-19 pandemic is likely to decrease demand for our insurance products and services and negatively impact our premium volumes (and, in certain cases, may result in return of premiums due to a decrease in exposures).

This may continue for an indefinite period, with the magnitude of the impact impossible to predict.

In addition, as we continue to evaluate the effects of COVID-19 on the insurance coverages we currently offer, our appetite for providing certain coverages in various jurisdictions may change which could further negatively impact our premium volumes.

Any such reduction in our premiums would likely cause our expense ratio to rise.

Investments.

Further disruptions in global financial markets due to the continuing impact of COVID-19 could cause us to incur additional unrealized and/or realized investment losses (beyond the investment fund losses incurred to date), including impairments in our fixed maturity portfolio and other investments.

In addition, the economic uncertainty resulting from COVID-19 may result in a further decline in interest rates, which may negatively impact our net investment income from future investment activity.

Credit Risk.

As credit risk is generally a function of the economy, we face greater credit risk from our policyholders, independent agents and brokers in connection with the payment and remittance of premiums as a result of the economic conditions caused by COVID-19.

Similarly, our credit risk related to the reimbursement of deductibles from policyholders and in connection with reinsurance recoverables has increased.

Operational Disruptions and Costs.

Our operations could be disrupted if key members of our senior management or a significant percentage of our workforce or the workforce of our agents, brokers, suppliers or other third party service providers are unable to continue to work because of illness, government directives or otherwise.

In addition, our agents, brokers, suppliers and other third party service providers, which we rely on for key aspects of our operations, are subject to risks and uncertainties related to the COVID-19 pandemic, which may interfere with their ability to fulfill their respective commitments and responsibilities to us in a timely manner and in accordance with the agreed-upon terms.

In response to the COVID-19 pandemic, we have implemented remote working policies which have resulted in disruptions to our business routines, heightened risk to cybersecurity attacks and data security incidents and a greater dependency on internet and telecommunication access and capabilities.

In particular, the European Commission and European regulators are undertaking a review of Solvency II, which is anticipated to be completed in the third quarter of 2021.

and conditions acceptable to us.

| | |

| --- | --- |

The potential impact of the Dodd-Frank Act, as amended by the Economic Growth Act, on the U.S. insurance business is not clear.

The 2016 U.K. referendum on its membership in the EU resulted in a majority of U.K. voters voting in favor of the U.K. leaving the EU (“Brexit”).

However, EU officials and others have expressed skepticism that such a trade deal can be agreed in the time frame allowed.

The U.K. government has stated that it will not seek to extend the transitional period.

There is, therefore, a risk that at the end of 2020 no trade deal (or only a minimal trade deal) will have been completed, with the result that a “hard” Brexit occurs on December 31, 2020.

Depending on the terms of the long-term trade deal with the EU and/or whether or not a “hard” Brexit occurs on December 31, 2020, the U.K. could lose access to the single EU market and to free trade deals with several countries that already have agreements with the EU.

its obligations, we may be exposed to credit risk on the securities pledged and/or the risk that our access to that collateral may be stayed as a result of bankruptcy.

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.

observable.

Risks Relating to Purchasing Our Securities

Pursuant to applicable laws and regulations, “control” over an insurer is generally presumed to

[removed: The reclassified business] [added: (3)Reinsurance & Monoline Excess] includes [added: property and casualty reinsurance as well as] operations that solely retain risk on an excess basis.

[added: The estimate represents an informed judgment based on] general reserving practices and reflects the experience and knowledge of the claims personnel regarding the nature and value of the specific type of claim.

Management believes the estimates and assumptions it makes in the reserving process provide the best estimate of the ultimate cost of settling claims and [added: related expenses with respect to insured events which have occurred; however, different assumptions and variables could lead to significantly different reserve estimates.]

The following table reflects the impact of changes (which could be favorable or unfavorable) in frequency and severity, relative to our assumptions, on our loss estimate for claims occurring in [removed: 2019:][added: 2020:]

| (In thousands) | [added: | |] Frequency (+/-) | | | | | | | | | | | [added: | | | |]

| Severity (+/-) | [added: | |] 1% | | | | [added: | |] 5% | | | | [added: | |] 10% | | |

Our net reserves for losses and loss expenses of approximately [removed: $10.7] [added: $11.6] billion as of December 31, [removed: 2019] [added: 2020] relate to multiple accident years.

Approximately [removed: $2.5] [added: $2.6] billion, or [removed: 23%,] [added: 22%,] of the Company’s net loss reserves as of December 31, [removed: 2019] [added: 2020] relate to the Reinsurance & Monoline Excess segment.

[removed: Furthermore, due to] delayed reporting of claim information by ceding companies, the claim settlement tail for assumed reinsurance is also extended.

Following is a summary of the Company’s reserves for losses and loss expenses by business segment as of December 31, [removed: 2019] [added: 2020] and [removed: 2018:][added: 2019:]

| (In thousands) | [added: | | 2020 | | | | | |] 2019 | | | | [added: | |] 2018 | | | [added: | | | | | |]

| Insurance | [added: | |] $ | [removed: 8,193,381] [added: 9,034,969] | | | [added: | |] $ | [removed: 7,727,447] [added: 8,193,381] | |

| Reinsurance & Monoline Excess | [removed: 2,504,617] | | [added: 2,585,424] | | [removed: 2,521,436] | | | [added: | 2,504,617 | | |]

| Net reserves for losses and loss expenses | [removed: 10,697,998] | | [added: 11,620,393] | | [removed: 10,248,883] | | | [added: | 10,697,998 | | |]

| Ceded reserves for losses and loss expenses | [removed: 1,885,251] | | [added: 2,164,037] | | [removed: 1,717,565] | | | [added: | 1,885,251 | | |]

| Gross reserves for losses and loss expenses | [added: | |] $ | [removed: 12,583,249] [added: 13,784,430] | | | [added: | |] $ | [removed: 11,966,448] [added: 12,583,249] | |

Following is a summary of the Company’s net reserves for losses and loss expenses by major line of business as of December 31, [removed: 2019] [added: 2020] and [removed: 2018:][added: 2019:]

| (In thousands) | [added: | |] Reported [removed: Case Reserves] [added: Case Reserves] | | | | [added: | |] Incurred [removed: But Not] [added: But Not] Reported | | | | [added: | |] Total | | |

| December 31, 2019 | | | | | | | | | | | | [added: | | | | | |]

| Other liability | [added: | |] $ | 1,421,378 | | | [added: | |] $ | 2,522,957 | | | [added: | |] $ | 3,944,335 | |

| Workers’ compensation (1) | [added: | |] 918,619 | | | | [added: | |] 964,102 | | | | [added: | |] 1,882,721 | | |

| Professional liability | [added: | |] 399,411 | | | | [added: | |] 713,433 | | | | [added: | |] 1,112,844 | | |

| Commercial automobile | [added: | |] 412,036 | | | | [added: | |] 300,339 | | | | [added: | |] 712,375 | | |

| Short-tail lines (2) | [added: | |] 271,192 | | | | [added: | |] 269,914 | | | | [added: | |] 541,106 | | |

| Total Insurance | [added: | |] 3,422,636 | | | | [added: | |] 4,770,745 | | | | [added: | |] 8,193,381 | | |

| Reinsurance & Monoline Excess (1) [added: (3)] | [added: | |] 1,469,363 | | | | [added: | |] 1,035,254 | | | | [added: | |] 2,504,617 | | |

| Total | [added: | |] $ | 4,891,999 | | | [added: | |] $ | 5,805,999 | | | [added: | |] $ | 10,697,998 | |

[removed: | (1) | Reserves] [added: (1)Reserves] for excess and assumed workers’ compensation business are net of an aggregate net discount of [removed: $530] [added: $483] million and [removed: $563] [added: $530] million as of December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] respectively. [removed: |]

[removed: | (2) | Short-tail] [added: (2)Short-tail] lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines. [removed: |]

| (In thousands) | [added: | | 2020 | | | | | |] 2019 | | | | [added: | |] 2018 | | | | [removed: 2017] | | | [added: | |]

| [removed: (Increase) decrease] [added: Increase] in prior year loss reserves | [added: | |] $ | [removed: (34,079] [added: (627)] | [removed: )] | | [added: | |] $ | [removed: (6,831] [added: (34,079)] | [removed: )] | | [added: | |] $ | [removed: 5,165] [added: (6,831)] | | [added: | | | | | |]

| Increase in prior year earned premiums | [added: | | 16,807 | | | | | |] 53,511 | | | | [added: | |] 45,638 | | | | [removed: 32,162] | | | [added: | |]

| Net favorable prior year development | [added: | |] $ | [added: 16,180 | | | | | $ |] 19,432 | | | [added: | |] $ | 38,807 | | | [removed: $] | [removed: 37,327] | | [added: | |]

Favorable prior year development (net of additional and return premiums) was $19 million [removed: in 2019.][added: in 2019.]

This overall favorable development resulted from more significant favorable development on workers’ compensation business, which was [removed: largely] [added: partially] offset by unfavorable development on professional liability and general liability business.

In addition, for both of these lines of business, we have seen evidence of social inflation in the form of higher jury awards on cases [removed: which] [added: that] go to trial, and corresponding higher demands from plaintiffs and higher values required to reach settlement on cases [removed: which] [added: that] do not go to trial.

Favorable prior year development (net of additional and return premiums) was $39 million [removed: in 2018.][added: in 2018.]

The [removed: favorable] [added: unfavorable] development [added: in the segment] was [removed: primarily attributable to workers’ compensation business,] [added: driven by non-proportional assumed liability business written in both the U.S.] and [added: U.K., and] was partially offset by [removed: unfavorable] [added: favorable] development [removed: for professional liability] [added: on excess workers’ compensation] business.

[removed: Reported] workers’ compensation losses in 2018 continued to be below our expectations at most of our operating units, and were below the assumptions underlying our previous reserve estimates.

Favorable prior year development (net of additional and return premiums) was [removed: $37] [added: $16] million [removed: in 2017.][added: in 2020.]

The Company's share of the earnings or losses from investment funds is generally reported on a one-quarter lag in order to facilitate the timely completion of the Company's consolidated financial statements.

Effective January 1, 2020, the Company adopted new accounting standard ASU 2016-13 Financial Instruments - Credit Losses.

Refer to Note 1 in the financial statements for further information on the accounting guidance and impact of its adoption on the Company's results and financial position.

The ongoing COVID-19 pandemic, including the related impact on the U.S. and global economies, has materially and adversely affected our results of operations.

For the year ended December 31, 2020, the Company recorded approximately $171 million for COVID-19-related losses, net of reinsurance, and reinstatement premiums of approximately $18 million.

The ultimate impact of COVID-19 on the economy and on the Company’s results of operations, financial position and liquidity is uncertain and not within the Company’s control.

The scope, duration and magnitude of the direct and indirect effects of COVID-19 continue to evolve in ways that are difficult or impossible to anticipate.

Despite the effects of COVID-19 to date, the Company’s financial position and liquidity improved commencing in the second quarter.

The impact of the COVID-19 pandemic on our results of operations, financial position and liquidity is expected to include, among others:

Adverse Legislative and Regulatory Action.

Legislative and regulatory initiatives taken or that may be taken in response to COVID-19, such as those that seek to retroactively mandate or provide a presumption of coverage for losses which our insurance policies would not otherwise cover and were not priced to cover, may adversely affect us, particularly in our workers’ compensation and property coverages businesses.

Claim Losses Related to COVID-19 May Exceed Reserves.

Given the great uncertainties associated with COVID-19 and its impact and the limited information upon which our current assumptions and assessments have been made, our reserves and underlying estimated level of claim losses and costs arising from COVID-19 may materially change.

Claim Losses and Adjustment Expenses May Increase.

As the effects of COVID-19 on industry practices and economic, legal, judicial, social and other environmental conditions continue to evolve, unexpected and unintended issues related to claims and coverages may emerge (including in the area of property coverages where physical damage requirements and communicable disease exclusions are currently being challenged).

Reinsurance.

Reinsurers may dispute the applicability of reinsurance to COVID-19 related losses (including the application of reinsurance reinstatements) and, as a result, our reinsurers may refuse to pay reinsurance recoverables related thereto or they may not pay them on a timely basis.

In addition, we may be unable to renew our current reinsurance coverages or purchase new coverages with respect to certain exposures under our policies, including COVID-19-related exposures.

Premium Volumes May Be Negatively Impacted.

Reduced economic activity relating to the COVID-19 pandemic will likely decrease demand for our insurance products and services.

In addition, we may alter our view on the insurance coverages that are appropriate to offer in various jurisdictions, which could further negatively impact our premium volumes.

Investments.

Further disruptions in global financial markets due to the continuing impact of COVID-19 could cause us to incur additional unrealized and/or realized investment losses, including impairments in our fixed income portfolio and other investments.

Credit Risk.

As credit risk is generally a function of the economy, we face greater credit risk from our policyholders, independent agents and brokers in connection with the payment and remittance of premiums as a result of the economic conditions caused by COVID-19.

Similarly, our credit risk related to the reimbursement of deductibles from policyholders and in connection with reinsurance recoverables has increased.

Operational Disruptions and Costs.

Our operations could be disrupted if key members of our senior management or a significant percentage of our workforce or the workforce of our agents, brokers, suppliers or other third party service providers are unable to continue to work because of illness, government directives or otherwise.

In response to the COVID-19 pandemic, we have implemented remote working policies which have resulted in disruptions to our business routines, heightened risk to cybersecurity attacks and data security incidents and a greater dependency on internet and telecommunication access and capabilities.

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 1% | | | $ | 89,102 | | | | | $ | 268,193 | | | | | $ | 492,056 | |

| 5% | | | 268,193 | | | | | | 454,376 | | | | | | 687,105 | | |

| 10% | | | 492,056 | | | | | | 687,105 | | | | | | 930,917 | | |

Furthermore, due to

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| December 31, 2020 | | | | | | | | | | | | | | | | | |

| Other liability | | | $ | 1,534,514 | | | | | $ | 2,864,760 | | | | | $ | 4,399,274 | |

| Workers’ compensation (1) | | | 977,035 | | | | | | 873,072 | | | | | | 1,850,107 | | |

On April 2, 2019, a 3-for-2 common stock split was paid in the form of a stock dividend to holders of record as of March 14, 2019.

Shares outstanding and per share amounts in this Form 10-K reflect this 3-for-2 common stock split effected on April 2, 2019.

Commencing with the first quarter of 2019, the Company renamed the Reinsurance segment to Reinsurance & Monoline Excess, and reclassified the monoline excess business from the Insurance segment.

Reclassifications have been made to the Company's prior periods financial information in this Form 10-K to conform with this presentation.

The estimate represents an informed judgment based on

related expenses with respect to insured events which have occurred; however, different assumptions and variables could lead to significantly different reserve estimates.

| | | | | | | | | | | | |

| 1% | $ | 81,566 | | | $ | 245,508 | | | $ | 450,437 | |

| 5% | 245,508 | | | | 415,944 | | | | 628,988 | | |

| 10% | 450,437 | | | | 628,988 | | | | 852,178 | | |

| | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- |

| December 31, 2018 | | | | | | | | | | | |

| Other liability | $ | 1,307,068 | | | $ | 2,329,659 | | | $ | 3,636,727 | |

| Workers’ compensation (1) | 962,664 | | | | 955,711 | | | | 1,918,375 | | |

| Professional liability | 306,018 | | | | 659,596 | | | | 965,614 | | |

| Commercial automobile | 365,253 | | | | 290,217 | | | | 655,470 | | |

| Short-tail lines (2) | 294,122 | | | | 257,139 | | | | 551,261 | | |

| Total Insurance | 3,235,125 | | | | 4,492,322 | | | | 7,727,447 | | |

| Reinsurance & Monoline Excess (1) (3) | 1,479,604 | | | | 1,041,832 | | | | 2,521,436 | | |

| Total | $ | 4,714,729 | | | $ | 5,534,154 | | | $ | 10,248,883 | |

| | |

| --- | --- |

| (3) | Reinsurance & Monoline Excess includes property and casualty reinsurance as well as operations that solely retain risk on an excess basis. |

For professional liability business, adverse development was primarily related to unexpected large directors and officers (“D&O”) liability losses at one of our U.S. operating units, and large professional indemnity and D&O losses in the U.K. The adverse development stemmed mainly from accident years 2013 through 2016 in the U.S. and 2011 through 2016 in the U.K.

This favorable development was primarily due to excess workers’ compensation business, and was spread across many accident years, including years prior to 2008.

The favorable excess workers’ compensation development resulted due to the same causes discussed above for workers’ compensation in the Insurance segment.

The favorable excess workers’ compensation development was largely offset by adverse development on U.K. assumed casualty reinsurance, as well as on U.S. facultative casualty excess of loss business.

The adverse development on the U.K. casualty reinsurance was due to reserve strengthening associated with claims impacted by the change in the Ogden discount rate in the U.K. The Ogden rate is the discount rate used to calculate lump-sum bodily injury payouts in the U.K., and was reduced by the U.K. Ministry of Justice from +2.5% to -0.75%; the adverse development mostly related to U.K. motor bodily injury claims which we reinsured on an excess of loss basis in accident years 2012 through 2016.

The adverse development on U.S. facultative casualty business was due to construction related risks in accident years 2008 and prior.

Other-Than-Temporary Impairments (OTTI) of Investments.

The cost of securities is adjusted where appropriate to include a provision for decline in value which is considered to be other-than-temporary.

An other-than-temporary decline is considered to occur in investments where there has been a sustained reduction in fair value and where the Company does not expect the fair value to recover prior to the time of sale or maturity.

Fixed Maturity Securities – For securities that we intend to sell or, more likely than not, would be required to sell, a decline in value below amortized cost is considered to be OTTI.

The amount of OTTI is equal to the difference between amortized cost and fair value at the balance sheet date.

For securities that we do not intend to sell or expect to be required to sell, a decline in value below amortized cost is considered to be an OTTI if we do not expect to recover the entire amortized cost basis of a security (i.e., the present value of cash flows expected to be collected is less than the amortized cost basis of the security).

The portion of the decline in value not considered to be a credit loss (i.e., the difference in the present value of cash flows expected to be collected and the fair value of the security) is recognized in other comprehensive income.

| | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Unrealized loss less than 20% of amortized cost | 480 | | | $ | 3,259,888 | | | $ | 41,541 | |

The effective duration for the fixed maturity portfolio (including cash and cash equivalents) was [removed: 2.8] [added: 2.4] years at December 31, [removed: 2019] [added: 2020] and [removed: 2018.][added: 2.8 years at December 31, 2019.]

The following table outlines the groups of fixed maturity securities and their effective duration at December 31, [removed: 2019:][added: 2020:]

| | [added: | |] Effective | | | | | [added: | | | |]

| | [added: | |] Duration | | | | | [added: | | | |]

| ($ in thousands) | [added: | |] (Years) | | [added: | | | |] Fair Value | | |

| State and municipal | [added: | |] 3.9 | | [added: | | | |] $ | [removed: 3,978,944] [added: 3,700,200] | |

| U.S. government and government agencies | [removed: 2.3] | | [removed: 786,931] [added: 1.9] | | | [added: | | | 603,871 | | |]

| Cash and cash equivalents | [added: | |] — | | [removed: 1,023,710] | | | [added: | 2,372,366 | | |]

The Company determines the estimated change in fair value of the fixed maturity securities, assuming parallel shifts in [added: the yield curve for treasury securities while keeping spreads between individual securities and treasury securities static.]

The estimated fair value at specified levels at December 31, [removed: 2019] [added: 2020] would be as follows:

| (In thousands) | [added: | |] Estimated Fair Value | | | | [added: | |] Change in Fair Value | | |

| Change in interest rates: | | | | | | | | [added: | | | |]

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Mortgage-backed securities | | | 3.5 | | | | | | 1,027,828 | | |

| Corporate | | | 3.1 | | | | | | 4,671,581 | | |

| | | | | | | | | | | | |

| Foreign government | | | 3.0 | | | | | | 975,563 | | |

| Loans receivable | | | 1.0 | | | | | | 86,596 | | |

| Asset-backed securities | | | 0.9 | | | | | | 3,194,586 | | |

| Total | | | 2.4 | | | | | | $ | 16,632,591 | |

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| 300 basis point rise | | | $ | 15,429,092 | | | | | $ | (1,203,499) | |

| 200 basis point rise | | | 15,823,862 | | | | | | (808,729) | | |

| 100 basis point rise | | | 16,226,841 | | | | | | (405,750) | | |

| Base scenario | | | 16,632,591 | | | | | | — | | |

| 100 basis point decline | | | 17,074,947 | | | | | | 442,356 | | |

| 200 basis point decline | | | 17,521,813 | | | | | | 889,222 | | |

| 300 basis point decline | | | 18,005,098 | | | | | | 1,372,507 | | |

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| Corporate | 3.5 | | 4,156,415 | | |

| Mortgage-backed securities | 3.3 | | 1,634,959 | | |

| Foreign government | 2.4 | | 847,076 | | |

| Asset-backed securities | 1.3 | | 2,790,630 | | |

| Loans receivable | 0.8 | | 94,613 | | |

| Total | 2.8 | | $ | 15,313,278 | |

the yield curve for treasury securities while keeping spreads between individual securities and treasury securities static.

| | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- |

| 300 basis point rise | $ | 13,953,211 | | | $ | (1,360,067 | ) |

| 200 basis point rise | 14,413,112 | | | | (900,167 | | ) |

| 100 basis point rise | 14,866,470 | | | | (446,809 | | ) |

| Base scenario | 15,313,278 | | | | — | | |

| 100 basis point decline | 15,750,805 | | | | 437,526 | | |

| 200 basis point decline | 16,181,783 | | | | 868,504 | | |

| 300 basis point decline | 16,606,149 | | | | 1,292,871 | | |

[removed: | • |] [added: -] Insurance - predominantly commercial insurance business, including excess and surplus lines, admitted lines and specialty personal lines throughout the United States, as well as insurance business in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia. [removed: |]

[removed: | • |] [added: -] Reinsurance & Monoline Excess - reinsurance business on a facultative and treaty basis, primarily in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa, as well as operations that solely retain risk on an excess basis. [removed: |]

Of our [removed: 52] [added: 53] operating units, [removed: 45] [added: 46] have been organized and developed internally and seven have been added through acquisition.

Net premiums written, as reported based on United States generally accepted accounting principles (“GAAP”), for each of our operating segments for each of the past [removed: five] [added: three] years were as follows:

| | [added: | |] Year Ended December 31, | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | |]

| (In thousands) | [added: | | 2020 | | | | | |] 2019 | | | | [added: | |] 2018 | | | | [removed: 2017] | | | | [removed: 2016] | | | | [removed: 2015] | | | [added: | | | | | |]

| Net premiums written: | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | |]

| Reinsurance & Monoline Excess | [added: | | 915,336 | | | | | |] 777,490 | | | | [added: | |] 641,322 | | | | [removed: 704,993] | | | | [removed: 826,766] | | | | [removed: 775,254] | | | [added: | | | | | |]

| Percentage of net premiums written: | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | | |]

| Insurance | [added: | | 87.4 | | % | | | |] 88.7 | | % | | [added: | |] 90.0 | | % | | [removed: 88.7] | | [removed: %] | | [removed: 87.1] | | [removed: %] | | [removed: 87.5] | | [removed: %] | [added: | | | | | |]

| Reinsurance & Monoline Excess | [added: | | 12.6 | | | | | |] 11.3 | | | | [added: | |] 10.0 | | | | [removed: 11.3] | | | | [removed: 12.9] | | | | [removed: 12.5] | | | [added: | | | | | |]

| Total | [added: | |] 100.0 | | % | | [added: | |] 100.0 | | % | | [added: | |] 100.0 | | % | | [removed: 100.0] | | [removed: %] | | [removed: 100.0] | | [removed: %] | [added: | | | | | | | | | |]

Our [removed: twenty-five] [added: twenty-six] insurance company subsidiaries rated by Fitch Ratings ("Fitch") have insurer financial strength ratings of A+ (the seventh highest rating out of twenty-seven possible ratings).

*Acadia Insurance* is a Northeast regional property casualty underwriter offering a broad portfolio of products exclusively through local independent agents in Connecticut, Maine, Massachusetts, New Hampshire, New [removed: York] [added: York, Rhode Island] and Vermont.

In addition to its general offerings, Acadia has specialized expertise in insuring regional industries such as construction, [added: service contractors,] lumber, [removed: fishing] and transportation.

It serves a limited distribution [removed: channel consisting of] [added: channel, including] select Berkley member company agents.

*Berkley FinSecure* serves the insurance needs of companies in the financial services [removed: industry.][added: sector and beyond.]

Its Berkley [removed: crime] [added: Crime] division provides crime and fidelity related insurance products for commercial organizations, financial [removed: institutions] [added: sector businesses] and governmental [removed: entities.][added: entities on a primary and excess basis.]

Through Berkley [removed: Med,] [added: Healthcare Medical Professional,] it offers a wide range of medical professional coverages.

*Berkley Industrial* specializes in [removed: mono-line workers’] [added: writing workers'] compensation [removed: coverage] [added: insurance] for [removed: mining and mining related and] [added: diverse] high hazard industries in select states.

*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 [added: product] liability coverages.

Focusing on [added: small and] middle market accounts, it complements its standard writings with specialized products in areas such as construction.

*Berkley Select* specializes in underwriting professional liability insurance [removed: on a surplus lines basis] for law firms and accounting [added: firms, as well as other professional] firms [removed: through a limited number of brokers.][added: and their practices.]

It also offers executive [removed: and professional] liability products, including directors and officers liability, [removed: errors and omissions, and] employment practices [added: and fiduciary] liability, to small to middle market privately held and not for profit [removed: customers on both an admitted and surplus lines basis.][added: customers.]

*Berkley Surety* provides a full spectrum of surety bonds for construction, environmental and commercial surety accounts in the U.S. and Canada, through an independent agency and broker platform across [removed: 18] [added: 20] field locations.

Its products are distributed by a select group of independent retail agents and wholesale brokers located [removed: through] [added: throughout] the United States.

*Preferred Employers Insurance* focuses exclusively on workers' compensation products and services for businesses [added: based] in California.

It serves over [removed: 18,000] [added: 15,000] customers covering a broad spectrum of industries throughout the state.

*Union Standard* offers preferred commercial property and casualty insurance products and services to a wide range of small to medium size commercial entities [removed: through independent agents in Arizona, Arkansas, New Mexico, Oklahoma] [added: with a focus on the construction, farm/ranch, retail] and [removed: Texas.][added: service industries.]

*Verus Underwriting Managers* offers general liability, professional liability and property coverages for small to mid-sized commercial risks in the excess and surplus lines insurance market through a select group of appointed wholesale [removed: brokers and agents.][added: brokers.]

*W R B Europe* is comprised of specialist operating units offering a focused range of insurance products to markets in Continental [removed: Europe and Nordic countries.][added: Europe.]

*W / R / B Underwriting* provides a broad range of leading insurance products to the Lloyd's marketplace, with a concentration in specialist classes of business including property, professional [removed: indemnity, crisis management,] [added: indemnity] and [removed: asset protection.][added: crisis management.]

| | [added: | |] Year Ended December 31, | | | | | | | | | [added: | | | | | | | | | | | | | | | | | | | | | | | |]

| Acadia Insurance | [added: | | 6.0% | | | | | |] 5.9% | | [added: | | | |] 6.7% | | [removed: 7.0%] | | [removed: 6.9%] | | [removed: 6.9%] | [added: | | | | | | | | | | | | | |]

| Admiral Insurance | [added: | | 5.6 | | | | | |] 5.9 | | [removed: 5.8] | | [added: | |] 5.8 | | [removed: 5.7] | | [removed: 5.0] | [added: | | | | | | | | | | | | | | | |]

| Berkley Accident and Health | [added: | | 5.2 | | | | | |] 5.7 | | [added: | | | |] 5.7 | | [removed: 4.9] | | [removed: 4.5] | | [removed: 3.8] | [added: | | | | | | | | | | | | | |]

| Berkley Agribusiness | [removed: 1.1] | | 1.2 | | [removed: 1.2] | | [added: | |] 1.1 | | [removed: 0.9] | [added: | | | 1.2 | | | | | | | | | | | | | | | | | | | | |]

| Berkley Alliance Managers | [added: | | 2.8 | | | | | |] 3.0 | | [added: | | | |] 2.6 | | [removed: 2.0] | | [removed: 1.5] | | [removed: 0.7] | [added: | | | | | | | | | | | | | |]

| Berkley Aspire | [added: | | 0.5 | | | | | |] 0.4 | | [removed: 0.3] | | [removed: 0.3] | | 0.3 | | [removed: 0.4] | [added: | | | | | | | | | | | | | | | | | |]

| Berkley Canada | [added: | | 1.1 | | | | | |] 1.0 | | [added: | | | |] 1.0 | | [removed: 0.9] | | [removed: 0.8] | | [removed: 0.6] | [added: | | | | | | | | | | | | | |]

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Insurance | | | $ | 6,347,101 | | | | | $ | 6,086,009 | | | | | $ | 5,791,905 | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Total | | | $ | 7,262,437 | | | | | $ | 6,863,499 | | | | | $ | 6,433,227 | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

*Berkley Asset Protection* provides specialized insurance coverages for fine arts and jewelry exposures to commercial and individual clients.

Its Financial Services segment provides management liability and fidelity products to financial institutions, insurance companies and asset management firms.

Its products are distributed by a select group of independent retail agents.

*Berkley North Pacific* offers preferred insurance products and services to a broad range of small to medium size commercial entities.

It operates through independent agents in Idaho, Montana, Oregon, Utah and Washington.

Berkley Select provides these insurance products on both an admitted and surplus lines basis.

*Intrepid Direct* provides business insurance coverages through a direct distribution model focused on the franchise market, with specialties in the restaurant, garage and fitness industries.

*Key Risk* specializes in writing workers' compensation insurance for diverse industries including healthcare, human services, transportation, temporary staffing, professional employer organizations and contractors requiring coverage under the United States Longshore and Harbor Workers' Compensation Act (USL&H).

It operates through independent agents in Arizona, Arkansas, New Mexico, Oklahoma and Texas.

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 2020 | | | | | | 2019 | | | | | | 2018 | | | | | | | | | | | | | | | | | | | | |

| Berkley Asset Protection | | | 0.8 | | | | | | 0.6 | | | | | | 0.6 | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| W/R/B Underwriting | | | 4.3 | | | | | | 3.9 | | | | | | 2.9 | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | 2020 | | | | | | 2019 | | | | | | 2018 | | | | | | | | | | | | | | | | | | | | |

| Total | | | 100.0% | | | | | | 100.0% | | | | | | 100.0% | | | | | | | | | | | | | | | | | | | | |

Our monoline excess operations solely retain risk on an excess basis.

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | |

| --- | --- |

| | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Insurance | $ | 6,086,009 | | | $ | 5,791,905 | | | $ | 5,555,515 | | | $ | 5,597,147 | | | $ | 5,414,261 | |

| Total | $ | 6,863,499 | | | $ | 6,433,227 | | | $ | 6,260,508 | | | $ | 6,423,913 | | | $ | 6,189,515 | |

It offers a comprehensive range of property, casualty, professional liability, and specialty lines insurance products.

Berkley Net Underwriters also manages Berkley's assigned risk servicing carrier operations.

*Berkley North Pacific* provides local underwriting, claims and risk management services for businesses in the Northwest.

It operates with a select group of agents in Idaho, Montana, Oregon, Utah and Washington to sell and service property and casualty policies for larger middle-market standard businesses and specialty lines, such as construction, restaurants and manufacturing.

*Intrepid Direct* offers business coverages to franchise restaurants, auto service and repair garages, junk hauler franchisors and gym and fitness franchises on a direct basis.

*Key Risk* provides workers' compensation insurance to middle market accounts in several niches that appreciate expertise and exceptional service.

The unit operates two business units; one focused on middle market accounts located primarily in the mid-Atlantic and southeastern United States and one focused on national temporary staffing and United States Longshoreman & Harbor Act (USL&H) specialty programs.

| | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | 2019 | | 2018 | | 2017 | | 2016 | | 2015 |

| W/R/B Underwriting | 4.5 | | 3.5 | | 3.2 | | 4.1 | | 5.6 |

| | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | 2019 | | | 2018 | | | 2017 | | | 2016 | | | 2015 | |

| Other | — | | | — | | | 0.6 | | | 0.5 | | | — | |

| Revenue | $ | 6,397,074 | | | $ | 6,208,290 | | | $ | 6,003,130 | | | $ | 5,935,268 | | | $ | 5,664,654 | |

| Revenue | 877,551 | | | | 848,966 | | | | 922,478 | | | | 990,065 | | | | 957,125 | | |

| Revenue | 627,571 | | | | 634,395 | | | | 759,156 | | | | 728,851 | | | | 584,678 | | |

| Revenue | $ | 7,902,196 | | | $ | 7,691,651 | | | $ | 7,684,764 | | | $ | 7,654,184 | | | $ | 7,206,457 | |

| Net realized and unrealized gains on investments (2) | $ | 120,703 | | | $ | 154,488 | | | $ | 335,858 | | | $ | 267,005 | | | $ | 92,324 | |

| (2) | Represents realized gains on investments not classified as trading account securities prior to 2018. The inclusion of change in unrealized gains on equity securities within net income commenced January 1, 2018 due to our adoption of ASU 2016-01. The twelve months ended December 31, 2019 includes net realized gains on investment sales of $36 million and increased by a change in unrealized gains on equity securities of $85 million. The twelve months ended December 31, 2018 includes net realized gains on investment sales of $480 million reduced by a change in unrealized gains on equity securities of $320 million as well as $6 million in other-than-temporary impairments. |

| (3) | Represents the change in unrealized investment gains (losses) for available for sale securities recognized in stockholders' equity. Effective January 1, 2018, the Company adopted accounting guidance that requires all equity investments with readily determinable fair values (subject to certain exceptions) to be measured at fair value with changes in the fair value recognized in net income. As a result of this guidance, the Company recorded a cumulative effect adjustment of $291 million that increased retained earnings and decreased accumulated other comprehensive income ("AOCI"), resulting in no net impact to total stockholders' equity. |

Although the loss reserves included in the Company’s financial statements represent

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | |

| --- | --- | --- | --- |

| Ceded reserves | 1,885,251 | | |

The NAIC expects to adopt the group capital calculation tool in 2020.

It is unclear how the development of group capital measures will interact with existing capital requirements for insurance companies in the United States and with international capital standards.

It is possible that we may be required to hold additional capital as a result of these developments.

This amount will decrease to 80% on a pro-rata basis over a five-year period that began in 2017.

In September 2017, the U.S. and the European Union ("EU") signed the Covered Agreement.

Each party is working on its internal requirements and procedures (such as amending

[removed: Form 10-K][added: Form 10-K]

| (Mark One) | | [added: | | | |]

| ☒ | [added: | |] ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | [added: | |]

For the fiscal year ended December 31, [removed: 2019][added: 2020]

| ☐ | [added: | |] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | [added: | |]

| Delaware | | | [added: | | | | | |] 22-1867895 | [added: | |]

| *(State or other jurisdiction of incorporation or organization)* | | | [added: | | | | | |] *(I.R.S. Employer Identification Number)* | [added: | |]

| 475 Steamboat Road | [added: | |] Greenwich, | [added: | |] CT | [added: | |] 06830 | [added: | |]

| *(Address of principal executive offices)* | | | [added: | | | | | |] *(Zip Code)* | [added: | |]

Registrant’s telephone number, including area code: [removed: (203) 629-3000][added: (203) 629-3000]

| Title of each class | [added: | |] Trading Symbol(s) | [added: | |] Name of each exchange on which registered | [added: | |]

| Common Stock, par value $.20 per share | [added: | |] WRB | [added: | |] New York Stock Exchange | [added: | |]

| [removed: 5.625%] [added: 5.900%] Subordinated Debentures due [removed: 2053] [added: 2056] | [removed: WRB PRB] | [added: | WRB-PC | | |] New York Stock Exchange | [added: | |]

| [removed: 5.90%] [added: 5.750%] Subordinated Debentures due 2056 | [removed: WRB PRC] | [added: | WRB-PD | | |] New York Stock Exchange | [added: | |]

| [removed: 5.75%] [added: 5.700%] Subordinated Debentures due [removed: 2056] [added: 2058] | [removed: WRB PRD] | [added: | WRB-PE | | |] New York Stock Exchange | [added: | |]

| [removed: 5.70%] [added: 5.100%] Subordinated Debentures due [removed: 2058] [added: 2059] | [removed: WRB PRE] | [added: | WRB-PF | | |] New York Stock Exchange | [added: | |]

| [removed: 5.10%] [added: 4.250%] Subordinated Debentures due [removed: 2059] [added: 2060] | [removed: WRB PRF] | [added: | WRB-PG | | |] New York Stock Exchange | [added: | |]

| Large accelerated filer | [added: | |] ☒ | | [added: | | | |] Accelerated filer | [added: | |] ☐ | [added: | |]

| Non-accelerated filer | [added: | |] ☐ | | [added: | | | |] Smaller reporting company | [added: | |] ☐ | [added: | |]

| | | | [added: | | | | | |] Emerging growth company | [added: | |] ☐ | [added: | |]

The aggregate market value of the [removed: voting and non-voting] [added: registrant's] common stock held by non-affiliates [removed: (computed by reference to the price at which the common stock was last sold)] as of [added: June 30, 2020,] the last business day of the registrant’s most recently completed second fiscal [removed: quarter] [added: quarter,] was [removed: $9,617,776,032.][added: $8,077,532,224.]

Number of shares of common stock, $.20 par value, outstanding as of February [removed: 18, 2020: 183,421,709][added: 11, 2021: 177,361,868]

Portions of the Company’s definitive proxy statement, which will be filed with the Securities and Exchange Commission within 120 days after December 31, [removed: 2019,] [added: 2020,] are incorporated herein by reference in Part III.

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| [SAFE HARBOR [removed: STATEMENT](#s009800419ED35CE684CB51280CB0231B)] [added: STATEMENT](#id8b99f3e4d0b485492066def62f1cbab_10)] | | | | [added: | | | | | | | |]

| | [added: | |] PART I | | | [added: | | | | | |]

| ITEM | [added: | |] 1. | [removed: [BUSINESS](#s1B705A91C37254F2A9B466E8CDFFF6FD)] | [removed: [1](#s1B705A91C37254F2A9B466E8CDFFF6FD)] | [added: [BUSINESS](#id8b99f3e4d0b485492066def62f1cbab_16) | | | [1](#id8b99f3e4d0b485492066def62f1cbab_16) | | |]

| ITEM | [added: | |] 1A. | [added: | |] [RISK [removed: FACTORS](#sED908069FBA25FD49F62F87B641E9D19)] [added: FACTORS](#id8b99f3e4d0b485492066def62f1cbab_19)] | [removed: [19](#sED908069FBA25FD49F62F87B641E9D19)] | [added: | [19](#id8b99f3e4d0b485492066def62f1cbab_19) | | |]

| ITEM | [added: | |] 1B. | [added: | |] [UNRESOLVED STAFF [removed: COMMENTS](#sD27EE3DDA14B5916ADBED5F0BE78B193)] [added: COMMENTS](#id8b99f3e4d0b485492066def62f1cbab_22)] | [removed: [28](#sD27EE3DDA14B5916ADBED5F0BE78B193)] | [added: | [29](#id8b99f3e4d0b485492066def62f1cbab_22) | | |]

| ITEM | [added: | |] 2. | [removed: [PROPERTIES](#s0981FC52E0DE5D0CB67D554F1542B830)] | [removed: [28](#s0981FC52E0DE5D0CB67D554F1542B830)] | [added: [PROPERTIES](#id8b99f3e4d0b485492066def62f1cbab_25) | | | [30](#id8b99f3e4d0b485492066def62f1cbab_25) | | |]

| ITEM | [added: | |] 3. | [added: | |] [LEGAL [removed: PROCEEDINGS](#s37107C13E55E5054A0841046A2B7EEC7)] [added: PROCEEDINGS](#id8b99f3e4d0b485492066def62f1cbab_28)] | [removed: [28](#s37107C13E55E5054A0841046A2B7EEC7)] | [added: | [30](#id8b99f3e4d0b485492066def62f1cbab_28) | | |]

| ITEM | [added: | |] 4. | [added: | |] [MINE SAFETY [removed: DISCLOSURES](#sF17F05F0D7EF5146BCC127C68ADB1CC7)] [added: DISCLOSURES](#id8b99f3e4d0b485492066def62f1cbab_31)] | [removed: [29](#sF17F05F0D7EF5146BCC127C68ADB1CC7)] | [added: | [30](#id8b99f3e4d0b485492066def62f1cbab_31) | | |]

| | [added: | |] PART II | | | [added: | | | | | |]

| ITEM | [added: | |] 5. | [added: | |] [MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY [removed: SECURITIES](#sA9EA34C176BF581D8EF7017BE412BFBD)] [added: SECURITIES](#id8b99f3e4d0b485492066def62f1cbab_37)] | [removed: [30](#sA9EA34C176BF581D8EF7017BE412BFBD)] | [added: | [31](#id8b99f3e4d0b485492066def62f1cbab_37) | | |]

| ITEM | [added: | |] 7. | [added: | |] [MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF [removed: OPERATIONS](#s40080FB145A856C7A03637A0E80251C7)] [added: OPERATIONS](#id8b99f3e4d0b485492066def62f1cbab_43)] | [removed: [33](#s40080FB145A856C7A03637A0E80251C7)] | [added: | [33](#id8b99f3e4d0b485492066def62f1cbab_43) | | |]

| ITEM | [added: | |] 7A. | [added: | |] [QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET [removed: RISK](#s389235A737DB5A6FB261EE7C28730F61)] [added: RISK](#id8b99f3e4d0b485492066def62f1cbab_61)] | [removed: [57](#s389235A737DB5A6FB261EE7C28730F61)] | [added: | [54](#id8b99f3e4d0b485492066def62f1cbab_61) | | |]

| ITEM | [added: | |] 8. | [added: | |] [FINANCIAL STATEMENTS AND SUPPLEMENTARY [removed: DATA](#s140F20C3F0405E08B087CD21314BA23F)] [added: DATA](#id8b99f3e4d0b485492066def62f1cbab_64)] | [removed: [58](#s140F20C3F0405E08B087CD21314BA23F)] | [added: | [55](#id8b99f3e4d0b485492066def62f1cbab_64) | | |]

| ITEM | [added: | |] 9. | [added: | |] [CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL [removed: DISCLOSURE](#s260A278208555C02B09213BDDCBD502B)] [added: DISCLOSURE](#id8b99f3e4d0b485492066def62f1cbab_181)] | [removed: [109](#s260A278208555C02B09213BDDCBD502B)] | [added: | [107](#id8b99f3e4d0b485492066def62f1cbab_181) | | |]

| ITEM | [added: | |] 9A. | [added: | |] [CONTROLS AND [removed: PROCEDURES](#s40A7E48746F35B00BA0EAA0B44BC58E4)] [added: PROCEDURES](#id8b99f3e4d0b485492066def62f1cbab_184)] | [removed: [109](#s40A7E48746F35B00BA0EAA0B44BC58E4)] | [added: | [107](#id8b99f3e4d0b485492066def62f1cbab_184) | | |]

| ITEM | [added: | |] 9B. | [added: | |] [OTHER [removed: INFORMATION](#sBE9ECBE42983503E845781AEF170A162)] [added: INFORMATION](#id8b99f3e4d0b485492066def62f1cbab_187)] | [removed: [111](#sBE9ECBE42983503E845781AEF170A162)] | [added: | [109](#id8b99f3e4d0b485492066def62f1cbab_187) | | |]

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W. R. BERKLEY CORPORATION

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| 4.125% Subordinated Debentures due 2061 | | | WRB-PH | | | New York Stock Exchange | | |

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Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

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| ITEM | | | 6. | | | Not Applicable | | | | | |

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This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995.

This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Some of the forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “potential,” “continued,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words.

Any forward-looking statements contained in this report including statements related to our outlook for the industry and for our performance for the year 2021 and beyond, are based upon our historical performance and on current plans, estimates and expectations.

The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved.

They are subject to various risks and uncertainties, including but not limited to:

- the ongoing COVID-19 pandemic;

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W. R. BERKLEY CORPORATION

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| ITEM | 6. | [SELECTED FINANCIAL DATA](#sDFEACAA098135BE0ABF5A4F5A13A6844) | [32](#sDFEACAA098135BE0ABF5A4F5A13A6844) |

| | This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,” “potential,” “continued,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this report including statements related to our outlook for the industry and for our performance for the year 2020 and beyond, are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: |

At December 31, [removed: 2019,] [added: 2020,] the Company had aggregate office space of [removed: 4,227,391] [added: 4,217,252] square feet, of which [removed: 1,129,970] [added: 1,105,205] were owned and [removed: 3,097,421] [added: 3,112,047] were leased.

Rental expense for the Company's operations was approximately [removed: $44,107,000, $45,778,000] [added: $44,291,000, $44,107,000] and [removed: $52,925,000] [added: $45,778,000] for [removed: 2019, 2018] [added: 2020, 2019] and [removed: 2017,] [added: 2018,] respectively.

Future minimum lease payments, without provision for sublease income, are [removed: $49,293,000] [added: $47,477,000] in [removed: 2020, $47,107,000] [added: 2021, $41,442,000] in [removed: 2021] [added: 2022] and [removed: $189,134,000] [added: $149,702,000] thereafter.

In [removed: 2019,] [added: 2020,] the Board declared regular quarterly cash dividends of [removed: $0.10] [added: $0.11] per share in the first quarter, and [removed: $0.11] [added: $0.12] per share in each of the remaining three [removed: quarters, plus additional special dividends in the respective amounts of $0.50 per share in the second quarter and $0.75 per share in the fourth quarter.][added: quarters.]

The approximate number of record holders of the common stock on February [removed: 18, 2020] [added: 11, 2021] was [removed: 319.][added: 311.]

*Assumes initial investment of $100 on January 1, [removed: 2014,] [added: 2015,] with dividends reinvested.*

[removed: ][added: ]

| | | [removed: 2014] | [added: | | |] 2015 | [added: | |] 2016 | [added: | |] 2017 | [added: | |] 2018 | [added: | |] 2019 | [added: | | 2020 | | |]

| S&P 500 Property and Casualty Insurance Index | [added: | |] Cum $ | [added: | |] 100.00 | [removed: 109.53] | [removed: 126.73] | [removed: 155.10] [added: 115.71] | [removed: 147.83] | [removed: 186.07] | [added: 141.61 | | | 134.97 | | | 169.88 | | | 180.64 | | |]

Set forth below is a summary of the shares repurchased by the Company during the fourth quarter of [removed: 2019] [added: 2020] and the remaining number of shares authorized for purchase by the Company during such period.

| | [added: | |] Total Number of Shares Purchased | | | [added: | | |] Average Price Paid per Share | | | [added: | | |] Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | | [added: | | |] Maximum Number of Shares that may yet be Purchased Under the Plans or Programs | | [added: |]

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| W. R. Berkley Corporation | | | Cum $ | | | 100.00 | | | 124.75 | | | 137.45 | | | 143.79 | | | 206.81 | | | 200.29 | | |

| S&P 500 Index - Total Returns | | | Cum $ | | | 100.00 | | | 111.96 | | | 136.40 | | | 130.41 | | | 171.46 | | | 202.98 | | |

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| October 2020 | | | 55,636 | | | | | | 59.87 | | | | | | 55,636 | | | | | | 7,221,520 | | |

| November 2020 | | | 354,095 | | | | | | 63.89 | | | | | | 354,095 | | | | | | 6,867,425 | | |

| December 2020 | | | 132,703 | | | | | | 64.39 | | | | | | 132,703 | | | | | | 6,734,722 | | |

The common stock of the Company is traded on the New York Stock Exchange under the symbol “WRB”.

All amounts have been adjusted to reflect the 3-for-2 common stock split effected on April 2, 2019.

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| W. R. Berkley Corporation | Cum $ | 100.00 | 107.76 | 134.43 | 148.11 | 154.95 | 222.86 |

| S&P 500 Index - Total Returns | Cum $ | 100.00 | 101.38 | 113.51 | 138.29 | 132.22 | 173.84 |

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| October 2019 | — | | | — | | | — | | | 13,367,095 | |

| November 2019 | 51,163 | | | 67.77 | | | 51,163 | | | 13,315,932 | |

| December 2019 | 217,909 | | | 67.72 | | | 217,909 | | | 13,098,023 | |

We have audited the accompanying consolidated balance sheets of W. R. Berkley Corporation and [removed: Subsidiaries] [added: subsidiaries] (the Company) as of December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three‑year period ended December 31, [removed: 2019,] [added: 2020,] and the related notes and financial statement schedules II to VI (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] and the results of its operations and its cash flows for each of the years in the [removed: three‑year] [added: three-year] period ended December 31, [removed: 2019,] [added: 2020,] in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, [removed: 2019,] [added: 2020,] based on criteria established in *Internal Control - Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February [removed: 20, 2020] [added: 18, 2021] expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex [removed: judgment.][added: judgments.]

[removed: *Assessment of the estimate of the reserves] [added: *Reserves] for losses and loss expenses*

As discussed in Notes 1 and 13 to the consolidated financial statements, the Company estimates the reserves for losses and loss expenses (reserves) using a variety of actuarial techniques and [removed: methods based on expected loss ratios, rate of][added: methods.]

[added: The key assumptions used to arrive at the best estimate of recorded reserves are expected] loss [added: ratios, rate of loss] cost inflation, reported and paid loss emergence patterns, loss frequency and severity, and the loss reporting lag.

The reserves as of December 31, [removed: 2019] [added: 2020] were [removed: $12,583] [added: $13,784] million.

We identified the assessment of the estimate of reserves as a critical audit matter because it involved significant measurement uncertainty, which required complex auditor [removed: judgment.][added: judgement.]

Specialized actuarial [removed: expertise was] [added: skills and knowledge were] required to evaluate the actuarial method or methods and assumptions used.

[removed: Assumptions included loss development] factors; the weighting of actuarial methods when more than one was used; the impact of qualitative factors; and whether payments are fixed and reliably determinable for certain reserves subject to discounting.

The [added: following are the] primary procedures we performed to address the critical audit [removed: matter included the following.][added: matter.]

[removed: We tested certain internal controls over the Company’s reserving process, including] [added: This included] controls over the Company’s process to develop the Company’s best estimate of reserves based on actuarial methodologies and assumptions employed by the Company’s actuaries.

[removed: | – | Examining] [added: - examining] the Company’s actuarial methodologies for compliance with Actuarial Standards of Practice; [removed: |]

[removed: | – | Evaluating] [added: - evaluating] the Company’s actuarial point estimate by performing independent actuarial analyses for certain of the larger, more complex operating units; [removed: |]

[removed: | – | Evaluating] [added: - evaluating] the Company’s actuarial point estimate by examining the Company actuaries’ [removed: procedures,] [added: process,] and certain key assumptions for the remaining operating units; [removed: |]

[removed: | – | Developing] [added: - developing] an independent range of reserves based on actuarial methodologies and assumptions and comparing to the Company’s [added: recorded] reserves; [removed: |]

[removed: | – | Evaluating] [added: - evaluating] the Company’s [added: recorded] reserves and year-over-year movements of the Company’s reserves relative to, and within, the independently developed range of [removed: reserves; and |][added: reserves.]

[removed: | – | Evaluating] [added: - evaluating] the Company’s ability to discount certain reserves by comparing the expected payout pattern of claims paid to actual claims [removed: paid. |][added: paid;]

| | [added: | |] Year Ended December 31, | | | | | | | | | | | [added: | | | |]

| (In thousands, except per share data) | [removed: 2019] | | [added: 2020] | | [removed: 2018] | | | | [removed: 2017] [added: 2019] | | | [added: | | | 2018 | | |]

| REVENUES: | | | | | | | | | | | | [added: | | | | | |]

| Net premiums written | [added: | |] $ | [removed: 6,863,499] [added: 7,262,437] | | | [added: | |] $ | [removed: 6,433,227] [added: 6,863,499] | | | [added: | |] $ | [removed: 6,260,508] [added: 6,433,227] | |

| Change in net unearned premiums | [removed: (230,211] | | [removed: )] [added: (331,594)] | | [removed: (61,722] | | [removed: )] | | [removed: 50,911] [added: (230,211)] | | | [added: | | | (61,722) | | |]

| Net premiums earned | [removed: 6,633,288] | | [added: 6,930,843] | | [removed: 6,371,505] | | | | [removed: 6,311,419] [added: 6,633,288] | | | [added: | | | 6,371,505 | | |]

| Net investment income | [removed: 645,614] | | [added: 583,821] | | [removed: 674,235] | | | | [removed: 575,788] [added: 645,614] | | | [added: | | | 674,235 | | |]

| Net realized and unrealized gains on [removed: investments:] [added: investments] | | | [added: 73,514] | | | | | | [added: 120,703] | | | [added: | | | 160,175 | | |]

| Net realized and unrealized gains [added: on investments in earnings] before [removed: OTTI] [added: allowance for expected credit losses] | [removed: 120,703] | | [added: 73,514] | | [removed: 160,175] | | | | [removed: 335,858] [added: 120,703] | | | [added: | | | 160,175 | | |]

| Other-than-temporary impairments [removed: ("OTTI")] | [removed: —] | | [added: 5,973] | | [removed: (5,687] | | [removed: )] | | [removed: —] [added: 8,049] | | |

| Net [removed: realized and unrealized] [added: investment] gains [removed: on investments] | [removed: 120,703] | | [added: 103,000] | | [removed: 154,488] | | | | [removed: 335,858] [added: 120,703] | | | [added: | | | 154,488 | | |]

| Revenues from non-insurance businesses | [removed: 406,541] | | [added: 389,888] | | [removed: 372,985] | | | | [removed: 326,165] [added: 406,541] | | | [added: | | | 372,985 | | |]

| Insurance service fees | [removed: 92,680] | | [added: 88,777] | | [removed: 117,757] | | | | [removed: 134,729] [added: 92,680] | | | [added: | | | 117,757 | | |]

| Other income | [removed: 3,370] | | [added: 2,596] | | [removed: 681] | | | | [removed: 805] [added: 3,370] | | | [added: | | | 681 | | |]

| Total revenues | [removed: 7,902,196] | | [added: 8,098,925] | | [removed: 7,691,651] | | | | [removed: 7,684,764] [added: 7,902,196] | | | [added: | | | 7,691,651 | | |]

| OPERATING COSTS AND EXPENSES: | | | | | | | | | | | | [added: | | | | | |]

| Losses and loss expenses | [removed: 4,131,116] | | [added: 4,468,706] | | [removed: 3,974,702] | | | | [removed: 4,002,348] [added: 4,131,116] | | | [added: | | | 3,974,702 | | |]

| Other operating costs and expenses | [removed: 2,362,082] | | [added: 2,390,392] | | [removed: 2,383,221] | | | | [removed: 2,436,932] [added: 2,362,082] | | | [added: | | | 2,383,221 | | |]

| Expenses from non-insurance businesses | [removed: 402,669] | | [added: 384,488] | | [removed: 364,449] | | | | [removed: 325,417] [added: 402,669] | | | [added: | | | 364,449 | | |]

| Interest expense | [removed: 153,409] | | [added: 150,537] | | [removed: 157,185] | | | | [removed: 147,297] [added: 153,409] | | | [added: | | | 157,185 | | |]

| Total operating costs and expenses | [removed: 7,049,276] | | [added: 7,394,123] | | [removed: 6,879,557] | | | | [removed: 6,911,994] [added: 7,049,276] | | | [added: | | | 6,879,557 | | |]

Assumptions included loss development

We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s reserving process.

February 18, 2021

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| Change in allowance for expected credit losses on investments | | | 29,486 | | | | | | — | | | | | | (5,687) | | |

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | |

| Fixed maturity securities (amortized cost of $13,755,858 and $13,976,647; allowance for expected credit losses of $2,580 at December 31, 2020) | | | $ | 14,159,369 | | | | | $ | 14,180,961 | |

| Loans receivable (net of allowance for expected credit losses of $5,437 at December 31, 2020) | | | 84,913 | | | | | | 91,799 | | |

| Premiums and fees receivable (net of allowance for expected credit losses of $22,883 at December 31, 2020) | | | 2,167,799 | | | | | | 1,997,186 | | |

| Due from reinsurers (net of allowance for expected credit losses of $7,801 at December 31, 2020) | | | 2,424,502 | | | | | | 2,133,683 | | |

| Total assets | | | $ | 28,606,913 | | | | | $ | 26,662,144 | |

| Current federal and foreign income taxes | | | 41,282 | | | | | | 10,006 | | |

| Total liabilities | | | 22,281,116 | | | | | | 20,543,802 | | |

| Total liabilities and equity | | | $ | 28,606,913 | | | | | $ | 26,662,144 | |

| Change in controlling financial interest of a subsidiary | | | | | | | | | | | | | | | | | | | | | (53,635) | | | | | | — | | | | | | — | | |

| Change in unrealized gains (losses) on securities without an allowance for expected credit losses | | | | | | | | | | | | | | | | | | | | | 108,244 | | | | | | 215,636 | | | | | | (252,241) | | |

| Change in unrealized gains (losses) on securities with an allowance for expected credit losses | | | | | | | | | | | | | | | | | | | | | 32,004 | | | | | | 369 | | | | | | (132) | | |

| | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Net income to common stockholders | | | $ | 530,670 | | | | | $ | 681,944 | | | | | $ | 640,749 | |

| | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | |

Premiums and fees receivable are reported net of an allowance for expected credit losses, with the allowance being estimated based on current and future expected conditions, historical loss data and specific identification of collectability concerns where applicable.

Changes in the allowance are reported within other operating costs and expenses.

For available for sale securities in an unrealized loss position where the Company intends to sell, or it is more likely than not that it will be required to sell the security before recovery in value, the amortized cost basis is written down to fair value through net investment gains.

For available for sale securities in an unrealized loss position where the Company does not intend to sell, or it is more likely than not that it will not be required to sell the security before recovery in value, the Company evaluates whether the decline in fair value has resulted from credit losses or all other factors (non-credit 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.

If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security.

If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for expected credit losses is recorded for the credit loss through net investment gains, limited by the amount that the fair value is less than the amortized cost basis.

The allowance is adjusted for any change in expected credit losses and subsequent recoveries through net investment gains.

The impairment related to non-credit factors is recognized in other comprehensive income.

For financial assets carried at amortized cost, which includes held to maturity securities and loans receivable, the Company estimates an allowance for expected credit losses based on relevant information about past events, including historical loss experience, current conditions and forecasts that affect the expected collectability of the amortized cost of the financial asset.

The allowance for expected credit losses is presented as a reduction to amortized cost of the financial asset in the consolidated balance sheet and changes to the estimate for expected credit losses are recognized through net investment gains.

The Company’s credit assessment of allowance for expected credit losses uses a third party model for available for sale and held to maturity securities, as well as loans receivable.

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.

*Change in Accounting Principle*

As discussed in Note 10 to the consolidated financial statements, the Company has changed its method of accounting for equity investments measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee) effective January 1, 2018 due to the adoption of ASU 2016-01, Financial Instruments.

| | |

| --- | --- |

February 20, 2020

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- |

| Premiums and fees receivable | 1,997,186 | | | | 1,807,762 | | |

| Due from reinsurers | 2,133,683 | | | | 1,932,291 | | |

| Total assets | $ | 26,643,428 | | | $ | 24,895,977 | |

| Total liabilities | 20,525,086 | | | | 19,416,179 | | |

| Total liabilities and equity | $ | 26,643,428 | | | $ | 24,895,977 | |

| Unrealized gains (losses) on securities not other-than-temporarily impaired | 215,636 | | | | (252,241 | | ) | | (52,628 | | ) |

| Unrealized gains (losses) on other-than-temporarily impaired securities | 369 | | | | (132 | | ) | | 895 | | |

| Cash and cash equivalents at beginning of year | 817,602 | | | | 950,471 | | | | 795,285 | | |

Shares outstanding and per share amounts have been adjusted to reflect the 3-for-2 common stock split effected on April 2, 2019.

Additionally, commencing with the first quarter of 2019, the Company renamed the Reinsurance segment as Reinsurance & Monoline Excess, and reclassified the monoline excess business from the Insurance segment to such renamed segment.

The reclassified business includes operations that solely retain risk on an excess basis.

The Company monitors the performance of its loans receivable and establishes an allowance for loan losses for loans where the Company determines it is probable that the contractual terms will not be met, with a corresponding charge to earnings.

For loans that are evaluated individually and deemed to be impaired, the Company establishes a specific allowance based on a discounted cash flow analysis and comparable cost and sales methodologies, if appropriate.

Individual loans that are not considered impaired and smaller-balance homogeneous loans are evaluated collectively and a general allowance is established if it is considered probable that a loss has been incurred.

The cost of securities is adjusted where appropriate to include a provision for a decline in value which is considered to be other than temporary.

An other-than-temporary decline is considered to occur in investments where there has been a sustained reduction in fair value and where the Company does not expect to recover the cost basis of the investment prior to the time of sale or maturity.

For fixed maturity securities that the Company intends to sell or, more likely than not, would be required to sell, a decline in value below amortized cost is considered to be an other-than-temporary impairment (“OTTI”).

For fixed maturity securities that the Company does not intend to sell or believes that it is more likely than not it would not be required to sell, a decline in value below amortized cost is considered to be an OTTI if the Company does not expect to recover the entire amortized cost basis of a security (i.e., the present value of cash flows expected to be collected is less than the amortized cost basis of the security).

development and construction are capitalized.

The right-of-use asset and the lease liability are determined based upon the present value of cash flows.

Finance leases reflect the financial arrangement by recognizing interest expense on the lease liability separately from the amortization expense of the right-of-use asset.

Operating leases recognize lease expense (with no separate recognition of interest expense) on a straight-line basis over the term of the lease.

The accounting by lessors is not significantly changed by the updated guidance.

As permitted by the rules, the Company adopted the new guidance prospectively effective January 1, 2019.

The Company elected to use the practical expedient permitted by the transition guidance which allowed companies to not reassess existing lease classifications for already effective leases.

The adoption of this guidance resulted in the recognition of a right-of-use asset of $185 million and a lease liability of $215 million (prior to adoption the Company had a $30 million

deferred rent liability recognized) reported within other assets and other liabilities, respectively, in the consolidated balance sheet.

The adoption of this guidance did not have an impact on the Company's results of operations or liquidity.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which amends the accounting guidance for credit losses on financial instruments.

The updated guidance is effective for reporting periods beginning after December 15, 2019.

| Beginning of period | $ | 375,421 | | | $ | (306,880 | ) | | $ | 68,541 | |

During the quarter ended December 31, [removed: 2019,] [added: 2020,] there have been no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

Based on our evaluation under the framework in Internal Control - Integrated Framework, our management concluded that our internal control over financial reporting was effective as of December 31, [removed: 2019.][added: 2020.]

We have audited W. R. Berkley Corporation and [removed: Subsidiaries’] [added: subsidiaries’] (the Company) internal control over financial reporting as of December 31, [removed: 2019,] [added: 2020,] based on criteria established in *Internal Control - Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2019,] [added: 2020,] based on criteria established in *Internal Control - Integrated Framework (2013)* issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, [removed: 2019,] [added: 2020,] and the related notes and financial statement schedules II to VI (collectively, the consolidated financial statements), and our report dated February [removed: 20, 2020] [added: 18, 2021] expressed an unqualified opinion on those consolidated financial statements.

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying [removed: Managements’s] [added: Managements’] Report [removed: on] [added: On] Internal Control [removed: over] [added: Over] Financial Reporting.

February 18, 2021

February 20, 2020

Reference is made to the registrant's definitive proxy statement, which will be filed with the Securities and Exchange Commission within 120 days after December 31, [removed: 2019,] [added: 2020,] and which is incorporated herein by reference.

Reference is made to the registrant's definitive proxy statement, which will be filed with the Securities and Exchange Commission within 120 days after December 31, [removed: 2019,] [added: 2020,] and which is incorporated herein by reference.

Reference is made to the registrant's definitive proxy statement, which will be filed with the Securities and Exchange Commission within 120 days after December 31, [removed: 2019,] [added: 2020,] and which is incorporated herein by reference.

Reference is made to the registrant's definitive proxy statement, which will be filed with the Securities and Exchange Commission within 120 days after December 31, 2020, and which is incorporated herein by reference.

Reference is made to the registrant's definitive proxy statement, which will be filed with the Securities and Exchange Commission within 120 days after December 31, 2020, and which is incorporated herein by reference.

Reference is made to the registrant's definitive proxy statement, which will be filed with the Securities and Exchange Commission within 120 days after December 31, 2020, and which is incorporated herein by reference.

Reference is made to the registrant's definitive proxy statement, which will be filed with the Securities and Exchange Commission within 120 days after December 31, [removed: 2019,] [added: 2020,] and which is incorporated herein by reference.

Reference is made to the registrant's definitive proxy statement, which will be filed with the Securities and Exchange Commission within 120 days after December 31, [removed: 2019,] [added: 2020,] and which is incorporated herein by reference.

| | [added: | |] Index to Financial Statement Schedules | [added: | |] Page | [added: | |]

| | [added: | |] [Schedule II — Condensed Financial Information of [removed: Registrant](#s81C6D2FCA08553BEB5C8D36704C92677)] [added: Registrant](#id8b99f3e4d0b485492066def62f1cbab_226)] | [removed: [120](#s81C6D2FCA08553BEB5C8D36704C92677)] | [added: | [117](#id8b99f3e4d0b485492066def62f1cbab_226) | | |]

| | [added: | |] [Schedule III — Supplementary Insurance [removed: Information](#s7B2B52930A875C1C8D003F3D69A54B4E)] [added: Information](#id8b99f3e4d0b485492066def62f1cbab_232)] | [removed: [124](#s7B2B52930A875C1C8D003F3D69A54B4E)] | [added: | [121](#id8b99f3e4d0b485492066def62f1cbab_232) | | |]

| | [added: | |] [Schedule V — Valuation and Qualifying [removed: Accounts](#s92C598FA1C6C5DBAB92498206EB59D68)] [added: Accounts](#id8b99f3e4d0b485492066def62f1cbab_238)] | [removed: [126](#s92C598FA1C6C5DBAB92498206EB59D68)] | [added: | [123](#id8b99f3e4d0b485492066def62f1cbab_238) | | |]

| | [added: | |] [Schedule VI — Supplementary Information Concerning Property — Casualty Insurance [removed: Operations](#sFCC1C49EF4BC5E3190A6FA3011CAD23B)] [added: Operations](#id8b99f3e4d0b485492066def62f1cbab_241)] | [removed: [127](#sFCC1C49EF4BC5E3190A6FA3011CAD23B)] | [added: | [124](#id8b99f3e4d0b485492066def62f1cbab_241) | | |]

| Number | | [added: | | | |]

| ([3.1](http://www.sec.gov/Archives/edgar/data/11544/000095012303009001/y89010exv3w1.txt)) | [added: | |] The Company’s Restated Certificate of Incorporation, as amended through May 10, 2004 (incorporated by reference to Exhibits 3.1 and 3.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on August 6, 2003). | [added: | |]

| ([3.2](http://www.sec.gov/Archives/edgar/data/11544/000095012304009233/y99817exv3w2.htm)) | [added: | |] Amendment, dated May 11, 2004, to the Company’s Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.2 of the Company’s Quarterly report on Form 10-Q (File No. 1-15202) filed with the Commission on August 5, 2004). | [added: | |]

| ([3.3](http://www.sec.gov/Archives/edgar/data/11544/000089914006000757/b051706b.txt)) | [added: | |] Amendment, dated May 16, 2006, to the Company’s Restated Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.2 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on May 17, 2006). | [added: | |]

| [removed: ([3.4](http://www.sec.gov/Archives/edgar/data/11544/000089914015000593/b3-2.htm))] [added: ([3.5](http://www.sec.gov/Archives/edgar/data/11544/000089914015000593/b3-2.htm))] | [added: | |] Amended and Restated By-Laws (incorporated by reference to Exhibit 3 (ii) of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on August 5, 2015). | [added: | |]

| [removed: ([4.1](https://www.sec.gov/Archives/edgar/data/11544/000001154420000016/wrb1231201910-kex41.htm))] [added: ([4.1](https://www.sec.gov/Archives/edgar/data/11544/000001154421000013/wrb1231202010-kex41.htm))] | [added: | |] Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 [added: (incorporated by reference to Exhibit 4.1 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on February 20, 2020).] | [added: | |]

| ([4.2](http://www.sec.gov/Archives/edgar/data/11544/000095012303003655/y84583exv4w1.htm)) | [added: | |] Indenture, dated as of February 14, 2003, between the Company and The Bank of New York, as [removed: trustee] [added: Trustee] (incorporated by reference to Exhibit 4.1 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission [removed: of] [added: on] March 31, 2003). | [added: | |]

| ([4.3](http://www.sec.gov/Archives/edgar/data/11544/000095012307003012/y30637exv4w7.txt)) | [added: | |] Fifth Supplemental Indenture, dated as of February 9, 2007, between the Company and The Bank of New York, as Trustee, relating to $250,000,000 principal amount of the Company’s 6.25% Senior Notes due 2037, including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.7 of the Company’s Annual Report on Form 10-K (File No. 1-15202) filed with the Commission on March 1, 2007). | [added: | |]

| [removed: ([4.4](http://www.sec.gov/Archives/edgar/data/11544/000095012310086592/y86605exv4w2.htm))] [added: ([4.4](http://www.sec.gov/Archives/edgar/data/11544/000119312512119781/d316663dex42.htm))] | [removed: Seventh] [added: | | Eighth] Supplemental Indenture, dated as of [removed: September] [added: March] 16, [removed: 2010,] [added: 2012,] between the Company and The Bank of New York Mellon, as Trustee, relating to [removed: $300,000,000] [added: $350,000,000] principal amount of the Company’s [removed: 5.375%] [added: 4.625%] Senior Notes due [removed: 2020,] [added: 2022,] including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.2 of the [removed: Company’s] [added: Company's] Current Report on Form 8-K (File No. 1-15202) filed with the Commission on [removed: September] [added: March] 16, [removed: 2010).] [added: 2012).] | [added: | |]

| [removed: ([4.5](http://www.sec.gov/Archives/edgar/data/11544/000119312512119781/d316663dex42.htm))] [added: ([4.5](http://www.sec.gov/Archives/edgar/data/11544/000119312514297751/d767573dex42.htm))] | [removed: Eighth] [added: | | Ninth] Supplemental Indenture, dated as of [removed: March 16, 2012,] [added: August 6, 2014,] between the Company and The Bank of New York Mellon, as Trustee, relating to $350,000,000 principal amount of the Company’s [removed: 4.625%] [added: 4.75%] Senior Notes due [removed: 2022,] [added: 2044,] including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on [removed: March 16, 2012).] [added: August 6, 2014).] | [added: | |]

| [removed: ([4.6](http://www.sec.gov/Archives/edgar/data/11544/000119312514297751/d767573dex42.htm))] [added: ([4.7](http://www.sec.gov/Archives/edgar/data/11544/000119312520140282/d867995dex42.htm))] | [removed: Ninth] [added: | | First] Supplemental Indenture, dated as of [removed: August 6, 2014,] [added: May 12, 2020,] between the Company and The Bank of New York Mellon, as Trustee, relating to [removed: $350,000,000] [added: $470,000,000] principal amount of the Company’s [removed: 4.75%] [added: 4.00%] Senior Notes due [removed: 2044,] [added: 2050,] including form of the Notes as Exhibit A (incorporated by reference to Exhibit 4.2 of the [removed: Company's] [added: Company’s] Current Report on Form 8-K (File No. 1-15202) filed with the Commission on [removed: August 6, 2014).] [added: May 12, 2020).] | [added: | |]

| [removed: ([4.7](http://www.sec.gov/Archives/edgar/data/11544/000119312513196205/d530505dex41.htm))] [added: ([4.6](http://www.sec.gov/Archives/edgar/data/11544/000119312520140282/d867995dex41.htm))] | [removed: Subordinated] [added: | |] Indenture, dated as of May [removed: 2, 2013,] [added: 12, 2020,] between the Company and The Bank of New York Mellon, as Trustee (incorporated by reference to Exhibit 4.1 of the [removed: Company's] [added: Company’s] Current Report on Form 8-K (File No. 1-15202) filed with the Commission on May [removed: 2, 2013).] [added: 12, 2020).] | [added: | |]

| [removed: ([4.8](http://www.sec.gov/Archives/edgar/data/11544/000119312513196205/d530505dex41.htm))] [added: ([4.9](http://www.sec.gov/Archives/edgar/data/11544/000119312516487120/d149496dex42.htm))] | [added: | |] First Supplemental Indenture, dated as of [removed: May 2, 2013,] [added: March 1, 2016,] between the Company and The Bank of New York Mellon, as Trustee, relating to [removed: $350,000,000] [added: $110,000,000] principal amount of the Company's [removed: 5.625%] [added: 5.9%] Subordinated Debentures due [removed: 2053,] [added: 2056,] including the form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on [removed: May 2, 2013).] [added: March 1, 2016).] | [added: | |]

| [removed: (4.9)] [added: ([4.8](http://www.sec.gov/Archives/edgar/data/11544/000119312516487120/d149496dex41.htm))] | [added: | |] Subordinated Indenture, dated as of March 1, 2016, between the Company and The Bank of New York Mellon, as Trustee (incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on March 1, 2016). | [added: | |]

| [removed: (4.10)] [added: ([4.10](http://www.sec.gov/Archives/edgar/data/11544/000119312516601712/d51674dex42.htm))] | [removed: First] [added: | | Second] Supplemental Indenture, dated as of [removed: March 1,] [added: May 25,] 2016, between the Company and The Bank of New York Mellon, as Trustee, relating to [removed: $110,000,000] [added: $290,000,000] principal amount of the Company's [removed: 5.9%] [added: 5.75%] Subordinated Debentures due 2056, including the form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on [removed: March 1,] [added: May 25,] 2016). | [added: | |]

| [removed: (4.11)] [added: ([4.13](http://www.sec.gov/Archives/edgar/data/11544/000119312519315039/d797169dex42.htm))] | [added: | |] Second Supplemental Indenture, dated as of [removed: May 25, 2016,] [added: December 16, 2019,] between the Company and [removed: The] [added: the] Bank of New York Mellon, as Trustee, relating to [removed: $290,000,000] [added: $300,000,000] principal amount of the Company's [removed: 5.75%] [added: 5.10%] Subordinated Debentures due [removed: 2056,] [added: 2059,] including the form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on [removed: May 25, 2016).] [added: December 16, 2019).] | [added: | |]

| [removed: (4.12)] [added: ([4.11](http://www.sec.gov/Archives/edgar/data/11544/000119312518095381/d542041dex41.htm))] | [added: | |] Subordinated Indenture, dated as of March 26, 2018, between the Company and The Bank of New York Mellon, as Trustee (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on March 26, 2018). | [added: | |]

| [removed: ([4.13](http://www.sec.gov/Archives/edgar/data/11544/000119312518095381/d542041dex42.htm))] [added: ([4.12](http://www.sec.gov/Archives/edgar/data/11544/000119312518095381/d542041dex42.htm))] | [added: | |] First Supplemental Indenture, dated as of March 26, 2018, between the Company and The Bank of New York Mellon, as Trustee, relating to [removed: $175,000,000] [added: $185,000,000] principal amount of the Company’s 5.7% Subordinated Debentures due 2058, including the form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on March 26, 2018). | [added: | |]

| [removed: ([4.14](http://www.sec.gov/Archives/edgar/data/11544/000119312519315039/d797169dex42.htm))] [added: ([4.14)](http://www.sec.gov/Archives/edgar/data/11544/000119312520249826/d70744dex42.htm)] | [removed: Second] [added: | | Third] Supplemental Indenture, dated as of [removed: December 16, 2019,] [added: September 21, 2020,] between the Company and [removed: the] [added: The] Bank of New York Mellon, as Trustee, relating to [removed: $300,000,000] [added: $250,000,000] principal amount of the [removed: Company's 5.10%] [added: Company’s 4.25%] Subordinated Debentures [added: Notes] due [removed: 2059,] [added: 2060,] including [removed: the] form of the Securities as Exhibit A (incorporated by reference to Exhibit 4.2 of the [removed: Company's] [added: Company’s] Current Report on Form 8-K (File No. 1-15202) filed with the Commission on [removed: December 16, 2019)] [added: September 21, 2020).] | [added: | |]

| [removed: (4.15)] [added: (4.16)] | [added: | |] The instruments defining the rights of holders of the other long term debt securities of the Company are omitted pursuant to Section (b)(4)(iii)(A) of Item 601 of Regulation S-K. The Company agrees to furnish supplementally copies of these instruments to the Commission upon request. | [added: | |]

| ([10.1](http://www.sec.gov/Archives/edgar/data/11544/000119312518122833/d560593ddef14a.htm)) | [added: | |] W. R. Berkley Corporation 2018 Stock Incentive Plan (incorporated by reference to Annex [removed: A] [added: B] of the Company’s 2018 Proxy Statement (File No. 1-15202) filed with the Commission on April 19, 2018). | [added: | |]

| ([10.2](http://www.sec.gov/Archives/edgar/data/11544/000095012303009001/y89010exv10w2.txt)) | [added: | |] Form of Restricted Stock Unit Agreement for grant of April 4, 2003 (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on August 6, 2003). | [added: | |]

| ([10.3](http://www.sec.gov/Archives/edgar/data/11544/000095012305005491/y08534exv10w2.htm)) | [added: | |] Form of Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2003 Stock Incentive Plan (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on May 3, 2005). | [added: | |]

| ([10.4](http://www.sec.gov/Archives/edgar/data/11544/000095012310073981/y85252exv10w1.htm)) | [added: | |] Form of Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2003 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on August 6, 2010). | [added: | |]

| ([10.5](http://www.sec.gov/Archives/edgar/data/11544/000001154412000092/wrb9302012ex101.htm)) | [added: | |] Form of Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 8, 2012). | [added: | |]

| [removed: (10.6)] [added: ([10.6](http://www.sec.gov/Archives/edgar/data/11544/000001154414000066/wrb9302014ex101.htm))] | [added: | |] Form of 2014 Performance-Based Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 7, 2014). | [added: | |]

| ([10.7](http://www.sec.gov/Archives/edgar/data/11544/000001154415000076/wrb9302015ex101.htm)) | [added: | |] Form of 2015 Performance-Based Restricted Stock Unit Agreement under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 9, 2015). | [added: | |]

| ([10.8](http://www.sec.gov/Archives/edgar/data/11544/000001154417000088/wrb9302017ex101.htm)) | [added: | |] Form of 2017 Performance-Based Restricted Stock Unit Agreement Under the W. R. Berkley Corporation 2012 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 8, 2017). | [added: | |]

| [removed: ([10.9](#s4D265FBD840D59958AA4B1682729510F))] [added: ([10.9](http://www.sec.gov/Archives/edgar/data/11544/000001154418000089/wrb930201810qex101.htm))] | [added: | |] Form of 2018 Performance-Based Restricted Stock Unit Agreement Under the W. R. Berkley Corporation 2018 Stock Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 7, 2018). | [added: | |]

| [removed: ([10.10](http://www.sec.gov/Archives/edgar/data/11544/000095012307016856/y44975exv10w1.htm))] [added: ([10.11](http://www.sec.gov/Archives/edgar/data/11544/000095012307016856/y44975exv10w1.htm))] | [added: | |] W. R. Berkley Corporation Deferred Compensation Plan for Officers as amended and restated November 2, 2016 (incorporated by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on November 7, 2018). | [added: | |]

| [removed: ([10.11](http://www.sec.gov/Archives/edgar/data/11544/000095012307016856/y44975exv10w2.htm))] [added: ([10.13](http://www.sec.gov/Archives/edgar/data/11544/000095012307016856/y44975exv10w2.htm))] | [added: | |] W. R. Berkley Corporation Deferred Compensation Plan for Directors as amended and restated effective December 3, 2007 (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K (File No. 1-15202) filed with the Commission on December 19, 2007). | [added: | |]

| [removed: ([10.12](http://www.sec.gov/Archives/edgar/data/11544/000089914019000260/b28130813b.htm))] [added: ([10.15](http://www.sec.gov/Archives/edgar/data/11544/000089914019000260/b28130813b.htm))] | [added: | |] W. R. Berkley Corporation Amended and Restated Annual Incentive Compensation Plan (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K (File No. 1-15202) filed with the Commission on February 25, 2019). | [added: | |]

| [removed: ([10.13](http://www.sec.gov/Archives/edgar/data/11544/000119312514133484/d704105ddef14a.htm))] [added: ([10.16](http://www.sec.gov/Archives/edgar/data/11544/000119312514133484/d704105ddef14a.htm))] | [added: | |] W. R. Berkley Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Annex A of the Company’s 2014 Proxy Statement (File No. 1-15202) filed with the Commission on April 7, 2014). | [added: | |]

| [removed: ([10.14](http://www.sec.gov/Archives/edgar/data/11544/000001154415000032/wrb3312015ex101.htm))] [added: ([10.17](http://www.sec.gov/Archives/edgar/data/11544/000001154418000022/wrb331201810qex101.htm))] | [added: | |] Form of [removed: 2015] [added: 2018] Performance Unit Award Agreement under the W. R. Berkley Corporation 2014 Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on May [removed: 4, 2015).] [added: 7, 2018).] | [added: | |]

| [removed: ([10.15](http://www.sec.gov/Archives/edgar/data/11544/000001154416000095/wrb3312016ex101.htm))] [added: ([10.20](http://www.sec.gov/Archives/edgar/data/11544/000001154420000087/wrb630202010-qex101.htm))] | [added: | |] Form of [removed: 2016] [added: 2020] Performance Unit Award Agreement under the W. R. Berkley Corporation [removed: 2014] [added: 2019] Long-Term Incentive Plan (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q (File No. 1-15202) filed with the Commission on [removed: May 10, 2016).] [added: August 3, 2020).] | [added: | |]

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| | | | [Schedule IV — Reinsurance](#id8b99f3e4d0b485492066def62f1cbab_235) | | | [122](#id8b99f3e4d0b485492066def62f1cbab_235) | | |

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