Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors

W. R. Berkley Corporation:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of W. R. Berkley Corporation and subsidiaries (the Company) as of December 31, 2022 and 2021, 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, 2022, 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, 2022 and 2021, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2022, 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, 2022, 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 24, 2023 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

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 judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Reserves for losses and loss expenses

As discussed in Notes 1 and 14 to the consolidated financial statements, the Company estimates the reserves for losses and loss expenses (reserves) using a variety of actuarial techniques and methods. The key assumptions used to arrive at the best estimate of recorded reserves are expected loss ratios, rate of loss cost inflation, reported and paid loss emergence patterns, loss frequency and severity, and the loss reporting lag. Such amounts are adjusted for certain qualitative factors. The reserves as of December 31, 2022 were $17.0 billion.

We identified the assessment of the estimate of reserves as a critical audit matter because it involved significant measurement uncertainty, which required complex auditor judgement. Specialized actuarial skills and knowledge were required to evaluate the actuarial method or methods and assumptions used. 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 following are the primary procedures we performed to address the critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s reserving process. 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. We involved actuarial professionals with specialized skills and knowledge, who assisted in:

examining the Company’s actuarial methodologies for compliance with Actuarial Standards of Practice;
evaluating the Company’s ability to discount certain reserves by comparing the expected payout pattern of claims paid to actual claims paid;
evaluating the Company’s actuarial point estimate by performing independent actuarial analyses for certain of the larger, more complex businesses;
evaluating the Company’s actuarial point estimate by examining the Company actuaries’ process, and key assumptions for certain of the remaining businesses;
developing an independent range of reserves based on actuarial methodologies and assumptions and comparing to the Company’s recorded reserves;
evaluating the Company’s recorded reserves and year-over-year movements of the Company’s reserves relative to, and within, the independently developed range of reserves.

/S/ KPMG LLP

We have served as the Company’s auditor since 1972.

New York, New York

February 24, 2023

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME


	Year Ended December 31,
(In thousands, except per share data)	2022		2021		2020
REVENUES:
Net premiums written	$	10,004,070	$	8,862,867	$	7,262,437
Change in net unearned premiums	(442,641)		(756,836)		(331,594)
Net premiums earned	9,561,429		8,106,031		6,930,843
Net investment income	779,185		671,618		583,821
Net investment gains:
Net realized and unrealized gains on investments	217,311		106,958		73,514
Change in allowance for expected credit losses on investments	(14,914)		(16,326)		29,486
Net investment gains	202,397		90,632		103,000
Revenues from non-insurance businesses	509,548		489,151		389,888
Insurance service fees	110,544		93,857		88,777
Other income	3,396		4,177		2,596
Total revenues	11,166,499		9,455,466		8,098,925
OPERATING COSTS AND EXPENSES:
Losses and loss expenses	5,861,750		4,953,960		4,468,706
Other operating costs and expenses	2,961,505		2,599,270		2,390,392
Expenses from non-insurance businesses	493,189		472,151		384,488
Interest expense	130,374		147,180		150,537
Total operating costs and expenses	9,446,818		8,172,561		7,394,123
Income before income taxes	1,719,681		1,282,905		704,802
Income tax expense	(334,727)		(251,890)		(171,817)
Net income before noncontrolling interests	1,384,954		1,031,015		532,985
Noncontrolling interests	(3,892)		(8,525)		(2,315)
Net income to common stockholders	$	1,381,062	$	1,022,490	$	530,670
NET INCOME PER SHARE:
Basic	$	4.99	$	3.69	$	1.89
Diluted	$	4.94	$	3.66	$	1.87

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Year Ended December 31,
(In thousands)	2022		2021		2020
Net income before noncontrolling interests	$	1,384,954	$	1,031,015	$	532,985
Other comprehensive (loss) gain.:
Change in unrealized translation adjustments	1,179		(20,969)		29,927
Change in unrealized investment (losses) gains, net of taxes	(983,803)		(198,812)		140,250

Other comprehensive (loss) gain	(982,624)		(219,781)		170,177
Comprehensive income	402,330		811,234		703,162
Noncontrolling interests	(3,890)		(8,523)		(2,313)
Comprehensive income to common stockholders	$	398,440	$	802,711	$	700,849

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	December 31,
(In thousands, except share data)	2022		2021
Assets
Investments:
Fixed maturity securities (amortized cost of $18,715,483 and $16,471,304; allowance for expected credit losses of $37,466 and $22,625 at December 31, 2022 and 2021)	$	17,587,349	$	16,602,673
Investment funds	1,608,548		1,480,612
Real estate	1,340,622		1,852,508
Arbitrage trading account	944,230		1,179,606
Equity securities	1,185,894		941,243
Loans receivable (net of allowance for expected credit losses of $1,791 and $1,718 at December 31, 2022 and 2021)	193,002		115,172

Total investments	22,859,645		22,171,814
Cash and cash equivalents	1,449,346		1,568,843
Premiums and fees receivable (net of allowance for expected credit losses of $30,660 and $25,218 at December 31, 2022 and 2021)	2,779,244		2,522,972
Due from reinsurers (net of allowance for expected credit losses of $8,064 and $7,713 at December 31, 2022 and 2021)	3,187,730		2,923,026
Deferred policy acquisition costs	763,486		676,145
Prepaid reinsurance premiums	696,468		676,915
Trading account receivable from brokers and clearing organizations	233,863		—
Property, furniture and equipment	423,232		419,883
Goodwill	185,509		169,652
Accrued investment income	166,784		122,938
Current federal and foreign income taxes	39,123		23,570
Deferred federal and foreign income taxes	340,647		57,425
Other assets	736,022		753,231
Total assets	$	33,861,099	$	32,086,414
Liabilities and Equity
Liabilities:
Reserves for losses and loss expenses	$	17,011,223	$	15,390,888
Unearned premiums	5,297,654		4,847,160
Due to reinsurers	523,131		514,980
Trading account securities sold but not yet purchased	—		1,169
Trading account payable to brokers and clearing organizations	—		53,636
Current federal and foreign income taxes	34,350		21,068
Deferred federal and foreign income taxes	11,646		17,470
Senior notes and other debt	1,828,823		2,259,416
Subordinated debentures	1,008,371		1,007,652
Other liabilities	1,377,740		1,305,245
Total liabilities	27,092,938		25,418,684
Equity:
Preferred stock, par value $.10 per share:
Authorized 5,000,000 shares; issued and outstanding — none	—		—
Common stock, par value $.20 per share:
Authorized 1,250,000,000 shares and 750,000,000 shares, respectively, issued and outstanding, net of treasury shares, 264,546,100 and 265,170,882 shares, respectively	105,803		105,803
Additional paid-in capital	997,534		981,104
Retained earnings	10,161,005		9,015,135
Accumulated other comprehensive loss	(1,264,581)		(281,955)
Treasury stock, at cost, 264,468,528 and 263,843,868 shares, respectively	(3,251,429)		(3,167,076)
Total common stockholders’ equity	6,748,332		6,653,011
Noncontrolling interests	19,829		14,719
Total equity	6,768,161		6,667,730
Total liabilities and equity	$	33,861,099	$	32,086,414
See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY


	Year Ended December 31,
(In thousands, except per share data)		2022		2021		2020
COMMON STOCK:
Beginning and end of period		$	105,803	$	105,803	$	105,803
ADDITIONAL PAID IN CAPITAL:
Beginning of period		$	981,104	$	977,215	$	1,020,774
Restricted stock units issued		(32,622)		(44,041)		(38,491)
Restricted stock units expensed		49,052		47,930		48,567
Change in controlling financial interest of a subsidiary		—		—		(53,635)

End of period		$	997,534	$	981,104	$	977,215
RETAINED EARNINGS:
Beginning of period		$	9,015,135	$	8,348,381	$	7,932,372
Cumulative effect adjustment resulting from changes in accounting principles		—		—		(30,514)
Net income to common stockholders		1,381,062		1,022,490		530,670
Dividends ($0.89, $1.34, and $0.31 per share, respectively)		(235,192)		(355,736)		(84,147)
End of period		$	10,161,005	$	9,015,135	$	8,348,381
ACCUMULATED OTHER COMPREHENSIVE LOSS:
Unrealized investment (losses) gains:
Beginning of period		$	90,900	$	289,714	$	124,514
Cumulative effect adjustment resulting from changes in accounting principles		—		—		24,952
Change in unrealized (losses) gains on securities without an allowance for expected credit losses		(955,435)		(208,938)		108,244
Change in unrealized (losses) gains on securities with an allowance for expected credit losses		(28,370)		10,124		32,004
End of period		(892,905)		90,900		289,714
Currency translation adjustments:
Beginning of period		(372,855)		(351,886)		(381,813)
Net change in period		1,179		(20,969)		29,927
End of period		(371,676)		(372,855)		(351,886)




Total accumulated other comprehensive loss		$	(1,264,581)	$	(281,955)	$	(62,172)
TREASURY STOCK:
Beginning of period		$	(3,167,076)	$	(3,058,425)	$	(2,726,711)
Stock exercised/vested		9,428		13,264		13,917
Stock issued		359		511		726
Stock repurchased		(94,140)		(122,426)		(346,357)
End of period		$	(3,251,429)	$	(3,167,076)	$	(3,058,425)
NONCONTROLLING INTERESTS:
Beginning of period		$	14,719	$	14,995	$	43,403
Contributions (distributions)		1,220		(8,799)		(30,721)
Net income		3,892		8,525		2,315
Other comprehensive loss, net of tax		(2)		(2)		(2)
End of period		$	19,829	$	14,719	$	14,995

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
(In thousands)	2022		2021		2020
CASH FROM OPERATING ACTIVITIES:
Net income to common stockholders	$	1,381,062	$	1,022,490	$	530,670
Adjustments to reconcile net income to net cash from operating activities:
Net investment gains	(202,397)		(90,632)		(103,000)
Depreciation and amortization	55,872		129,682		135,065
Noncontrolling interests	3,892		8,525		2,315
Investment funds	(145,099)		(220,015)		(54,253)
Stock incentive plans	49,411		46,680		49,658
Change in:
Arbitrage trading account	(53,291)		(268,649)		(67,943)
Premiums and fees receivable	(268,171)		(364,395)		(173,618)
Reinsurance accounts	(266,307)		(433,644)		(313,525)
Deferred policy acquisition costs	(88,844)		(121,663)		(38,691)
Current income taxes	(3,534)		(43,890)		49,021
Deferred income taxes	(64,712)		7,630		(34,057)
Reserves for losses and loss expenses	1,684,254		1,635,774		1,176,049
Unearned premiums	466,590		786,627		415,956
Other	19,878		89,467		43,039
Net cash from operating activities	2,568,604		2,183,987		1,616,686
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Proceeds from sale of fixed maturity securities	797,948		1,842,139		3,832,555
Proceeds from sale of equity securities	82,319		126,980		114,763
Distributions from (contributions to) investment funds	24,623		101,050		(3,042)
Proceeds from maturities and prepayments of fixed maturity securities	4,891,179		6,067,230		3,864,327
Purchase of fixed maturity securities	(8,036,680)		(10,716,748)		(7,551,591)
Purchase of equity securities	(340,482)		(464,645)		(253,031)
Real estate (purchased) sold	(45,920)		166,886		178,934

Change in loans receivable	(83,212)		(27,421)		1,467
Net additions to property, furniture and equipment	(52,684)		(66,634)		(38,171)
Change in balances due from security brokers	14,337		(17,983)		(26,515)
Cash received in connection with business disposition	906,789		—		—
Payment for business purchased, net of cash acquired	(49,572)		—		—
Net cash (used in) from investing activities	(1,891,355)		(2,989,146)		119,696
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES:
Net (payments) proceeds from issuance of debt	(3,309)		1,034,107		741,637

Repayment of senior notes and other debt	(426,503)		(504,952)		(652,751)
Cash dividends to common stockholders	(235,192)		(355,736)		(84,147)
Purchase of common treasury shares	(94,140)		(122,426)		(346,357)
Other, net	(12,848)		(45,162)		(56,225)
Net cash (used in) from financing activities	(771,992)		5,831		(397,843)
Net impact on cash due to change in foreign exchange rates	(24,754)		(4,195)		10,117
Net (decrease) increase in cash and cash equivalents	(119,497)		(803,523)		1,348,656
Cash and cash equivalents at beginning of year	1,568,843		2,372,366		1,023,710
Cash and cash equivalents at end of year	$	1,449,346	$	1,568,843	$	2,372,366

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2022, 2021 and 2020

(1) Summary of Significant Accounting Policies

(A) Principles of consolidation and basis of presentation

The consolidated financial statements, which include the accounts of W. R. Berkley Corporation and its subsidiaries (the "Company"), have been prepared on the basis of U.S. generally accepted accounting principles ("GAAP"). All significant intercompany transactions and balances have been eliminated. Reclassifications have been made in the 2021 and 2020 financial statements as originally reported to conform to the presentation of the 2022 financial statements. Shares outstanding and per share amounts have been adjusted to reflect the 3-for-2 common stock split effected on March 23, 2022. In the fourth quarter of 2022, the Company adjusted the proceeds from sale of fixed maturity securities and purchase of fixed maturity securities lines within the consolidated statements of cash flows for an incremental inter-company elimination which resulted in no impact on the total amount of investing activities. For the years ended December 31, 2021 and 2020, the Company did not correct these line items as the effects were not material and had no impact on the total amount of investing activities.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the revenues and expenses reflected during the reporting period. The most significant items on our balance sheet that involve a greater degree of accounting estimates that are subject to change in the future are the valuation of investments, allowance for expected credit losses on investments, reserves for losses and loss expenses and premium estimates. Actual results could differ from those estimates.

(B) Revenue recognition

Insurance premiums are recognized as written at the inception of the policy. Reinsurance premiums are estimated based upon information received from ceding companies, and subsequent differences from such estimates are recorded in the period they are determined. Insurance and reinsurance premiums are primarily earned on a pro rata basis over the policy term. Fees for services are earned over the period that the services are provided. 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.

Audit premiums are recognized when they are reliably determinable. The change in accruals for earned but unbilled audit premiums increased (decreased) net premiums written and premiums earned by $25 million, $10 million and $(27) million in 2022, 2021 and 2020, respectively.

Revenues from non-insurance businesses are derived from businesses engaged in the distribution of promotional merchandise, world-wide textile solutions, and aircraft services provided to the general, commercial and military aviation markets. These aircraft services include (i) the distribution, manufacturing, repair and overhaul of aircraft parts and components, (ii) the sale of new and used aircraft, and (iii) avionics, fuel, maintenance, storage and charter services. Revenue is recognized upon the shipment of products and parts, the delivery of aircraft, the delivery of fuel, and over the completion period of services.

Insurance service fee revenue represents servicing fees for program administration and claims management services provided by the Company, including workers' compensation assigned risk plans, as well as insurance brokerage and risk management services. Fees for program administration, claims management and risk management services are primarily recognized ratably over the related contract period for which the underlying services are rendered. Commissions for insurance brokerage are generally recognized when the underlying insurance policy is effective.

(C) Cash and cash equivalents

Cash equivalents consist of funds invested in money market accounts and investments with an effective maturity of three months or less when purchased.

(D) Investments

Fixed maturity securities classified as available for sale are carried at estimated fair value, with unrealized gains and losses, net of applicable income taxes, excluded from earnings and reported as a component of comprehensive income and a separate component of stockholders' equity. Fixed maturity securities that the Company has the positive intent and ability to

hold to maturity are classified as held to maturity and reported at amortized cost. Investment income from fixed maturity securities is recognized based on the constant effective yield method. Premiums and discounts on mortgage-backed securities are adjusted for the effects of actual and anticipated prepayments on a retrospective basis.

Equity securities with readily determinable fair values are measured at fair value, with changes in the fair value recognized in net income within net realized and unrealized gains on investments.

Fixed maturity securities that the Company purchased with the intent to sell in the near-term are classified as trading account securities and are reported at estimated fair value. Realized and unrealized gains and losses from trading activity are reported as net investment income and are recorded at the trade date. Short sales and short call options are presented as trading securities sold but not yet purchased. Unsettled trades and the net margin balances held by the clearing broker are presented as a trading account receivable from brokers and clearing organizations.

Investment funds are carried under the equity method of accounting. The Company's share of the earnings or losses of investment funds is primarily reported on a one-quarter lag in order to facilitate the timely completion of the Company's consolidated financial statements.

Loans receivable primarily represent commercial real estate mortgage loans and bank loans and are carried at amortized cost. The accrual of interest on loans receivable is discontinued if the loan is 90 days past due based on the contractual terms of the loan unless the loan is adequately secured and in process of collection. In general, loans are placed on non-accrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. Interest on these loans is accounted for on a cash basis until qualifying for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value of investments is determined based on a fair value hierarchy that prioritizes the use of observable inputs over the use of unobservable inputs and requires the use of observable inputs when available. (See Note 13 of the Notes to Consolidated Financial Statements.)

Realized gains or losses represent the difference between the cost of securities sold and the proceeds realized upon sale and are recorded at the trade date. The Company uses primarily the first-in, first-out method to determine the cost of securities sold.

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 comprehensive income (loss).

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. The allowance for expected credit losses is generally based on the performance of the underlying collateral under various economic and default scenarios that involve subjective judgments and estimates by management. Modeling these securities involves various factors, such as projected default rates, the nature and realizable value of the collateral, if any, the ability of the issuer to make scheduled payments, historical performance and other relevant economic and performance factors. A discounted cash flow analysis is used to ascertain the amount of the allowance for expected credit losses, if any. 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.

The Company reports accrued investment income separately from fixed maturity securities, and has elected not to measure an allowance for expected credit losses for accrued investment income. Accrued investment income is written off through net investment income at the time the issuer of the bond defaults or is expected to default on payments.

Real estate held for investment purposes is initially recorded at the purchase price, which is generally fair value, and is subsequently reported at cost less accumulated depreciation. Real estate taxes, interest and other costs incurred during development and construction are capitalized. Buildings are depreciated on a straight-line basis over the estimated useful lives of the building. Minimum rental income is recognized on a straight-line basis over the lease term. Income and expenses from real estate are reported as net investment income. The carrying value of real estate is reviewed for impairment and an impairment loss is recognized if the estimated undiscounted cash flows from the use and disposition of the property are less than the carrying value of the property.

(E) Per share data

The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by weighted average number of common shares outstanding during the year (including 11,416,856 common shares held in a grantor trust). The common shares held in the grantor trust are for delivery upon settlement of vested but mandatorily deferred restricted stock units ("RSUs"). Shares held by the grantor trust do not affect diluted shares outstanding since the shares deliverable under vested RSUs were already included in diluted shares outstanding. Diluted EPS is based upon the weighted average number of basic and common equivalent shares outstanding during the year and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect.

(F) Deferred policy acquisition costs

Acquisition costs associated with the successful acquisition of new and renewed insurance and reinsurance contracts are deferred and amortized ratably over the terms of the related contracts. Ceding commissions received on reinsurance contracts are netted against acquisition costs and are recognized ratably over the life of the contract. Deferred policy acquisition costs are presented net of unearned ceding commissions. Deferred policy acquisition costs are comprised primarily of commissions, as well as employment-related underwriting costs and premium taxes. Deferred policy acquisition costs are reviewed to determine if they are recoverable from future income and, if not, are charged to expense. The recoverability of deferred policy acquisition costs is evaluated separately by each of our operating companies. Future investment income is taken into account in measuring the recoverability of deferred policy acquisition costs.

(G) Reserves for losses and loss expenses

Reserves for losses and loss expenses are an accumulation of amounts determined on the basis of (1) evaluation of claims for business written directly by the Company; (2) estimates received from other companies for reinsurance assumed by the Company; and (3) estimates for losses incurred but not reported (based on Company and industry experience). These estimates are periodically reviewed and, as experience develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments are reflected in the statements of income in the period in which they are determined. The Company discounts its reserves for excess and assumed workers' compensation claims using a risk-free or statutory rate. (See Note 14 of Notes to Consolidated Financial Statements.)

(H) Reinsurance ceded

The unearned portion of premiums ceded to reinsurers is reported as prepaid reinsurance premiums and earned ratably over the policy term. The estimated amounts of reinsurance recoverable on unpaid losses are reported as due from reinsurers. To the extent any reinsurer does not meet its obligations under reinsurance agreements, the Company must discharge its liability. Amounts due from reinsurers are reflected net of funds held where the right of offset is present. The Company has provided an allowance for expected credit losses for estimated uncollectible reinsurance. The allowance is estimated based on the composition of the recoverable balance, considering reinsurer credit ratings, collateral received from financial institutions and funds withheld arrangements, length of collection periods, probability of default methodology, and specific identification of collectability concerns. Changes in the allowance are reported within losses and loss expenses.

(I) Deposit accounting

Contracts that do not meet the risk transfer requirements of GAAP are accounted for using the deposit accounting method. Under this method, an asset or liability is recognized at the inception of the contract based on consideration paid or received. The amount of the deposit asset or liability is adjusted at subsequent reporting dates using the interest method with a corresponding credit or charge to interest income or expense. Deposit liabilities for assumed reinsurance contracts were $33 million and $35 million at December 31, 2022 and 2021, respectively.

(J) Federal and foreign income taxes

The Company files a consolidated income tax return in the U.S. and foreign tax returns in countries where it has overseas operations. The Company's method of accounting for income taxes is the asset and liability method. Under this method, deferred tax assets and liabilities are measured using tax rates currently in effect or expected to apply in the years in which those temporary differences are expected to reverse. Interest and penalties, if any, are reported as income tax expense. The Company believes there are no tax positions that would require disclosure under GAAP. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that all or a portion of the deferred tax assets will not be realized.

(K) Foreign currency

Gains and losses resulting from foreign currency transactions (transactions denominated in a currency other than the entity's functional currency) are reported on the statements of income as other operating costs and expenses. Unrealized gains or losses resulting from translating the results of non-U.S. dollar denominated operations are reported in accumulated other comprehensive income. Revenues and expenses denominated in currencies other than U.S. dollars are generally translated at the weighted average exchange rate during the year. Assets and liabilities are translated at the rate of exchange in effect at the balance sheet date.

(L) Property, furniture and equipment

Property, furniture and equipment are carried at cost less accumulated depreciation. Depreciation is calculated using the estimated useful lives of the respective assets. Depreciation expense was $52 million, $52 million and $53 million for 2022, 2021 and 2020, respectively.

(M) Comprehensive income

Comprehensive income encompasses all changes in stockholders' equity (except those arising from transactions with stockholders) and includes net income, net unrealized holding gains or losses on available for sale securities and unrealized foreign currency translation adjustments.

(N) Goodwill and other intangible assets

Goodwill and other intangible assets are tested for impairment on an annual basis and at interim periods where circumstances require. The Company's impairment test as of December 31, 2022 indicated that there were no material impairment losses related to goodwill and other intangible assets. Intangible assets of $102 million and $85 million are included in other assets as of December 31, 2022 and 2021, respectively.

(O) Restricted stock units

The costs resulting from all share-based payment transactions with employees are recognized in the consolidated financial statements using a fair-value-based measurement method. Compensation cost is recognized for financial reporting purposes over the period in which the employee is required to provide service in exchange for the award (generally the vesting period).

(P) Statements of cash flows

Interest payments were $138 million, $141 million and $155 million in 2022, 2021 and 2020, respectively. Income taxes paid were $295 million, $244 million and $103 million in 2022, 2021 and 2020, respectively. Other non-cash items include unrealized investment gains and losses. (See Note 11 of Notes to Consolidated Financial Statements.)

(Q) Recent accounting pronouncements

Recently adopted accounting pronouncements:

All accounting and reporting standards that became effective in 2022 were either not applicable to the Company or their adoption did not have a material impact on the Company.

Accounting and reporting standards that are not yet effective:

All recently issued but not yet effective accounting and reporting standards are either not applicable to the Company or are not expected to have a material impact on the Company.

(2) Acquisitions

In March 2022, the Company acquired an 80.0% ownership interest for $51.1 million in a company engaged in residential and commercial textiles. The fair value of the assets acquired and liabilities assumed have been estimated based on a third party valuation.

The following table summarizes the estimated fair value of net assets acquired and liabilities assumed for the business combination completed in 2022:


(In thousands)	2022


Cash and cash equivalents	$	1,564
Real estate, furniture and equipment	6,000
Intangible assets	25,600
Goodwill	15,857
Other assets	20,349
Total assets acquired	69,370

Other liabilities assumed	(12,420)
Noncontrolling interest	(5,814)

Net assets acquired	$	51,136

(3) Consolidated Statements of Comprehensive (Loss) Income

The following tables present the components of the changes in accumulated other comprehensive (loss) income as of and for the years ended December 31, 2022 and 2021:


(In thousands)
December 31, 2022	Unrealized Investment (Losses) Gains			Currency Translation Adjustments		Accumulated Other Comprehensive Loss
Changes in AOCI
Beginning of period	$	90,900		$	(372,855)	$	(281,955)


Other comprehensive (loss) income before reclassifications	(1,054,838)			1,179		(1,053,659)
Amounts reclassified from AOCI	71,035			—		71,035
Other comprehensive (loss) income	(983,803)			1,179		(982,624)
Unrealized investment loss related to noncontrolling interest	(2)			—		(2)
Ending balance	$	(892,905)		$	(371,676)	$	(1,264,581)
Amounts reclassified from AOCI
Pre-tax	$	89,918	(1)	$	—	$	89,918
Tax effect	(18,883)		(2)	—		(18,883)
After-tax amounts reclassified	$	71,035		$	—	$	71,035
Other comprehensive (loss) income
Pre-tax	$	(1,248,128)		$	1,179	$	(1,246,949)
Tax effect	264,325			—		264,325
Other comprehensive (loss) income	$	(983,803)		$	1,179	$	(982,624)


(In thousands)
December 31, 2021	Unrealized Investment Gains (Losses)			Currency Translation Adjustments		Accumulated Other Comprehensive Loss
Changes in AOCI
Beginning of period	$	289,714		$	(351,886)	$	(62,172)
Other comprehensive loss before reclassifications	(222,359)			(20,969)		(243,328)
Amounts reclassified from AOCI	23,547			—		23,547



Other comprehensive loss	(198,812)			(20,969)		(219,781)
Unrealized investment loss related to non-controlling interest	(2)			—		(2)
Ending balance	$	90,900		$	(372,855)	$	(281,955)
Amounts reclassified from AOCI
Pre-tax	$	29,806	(1)	$	—	$	29,806
Tax effect	(6,259)		(2)	—		(6,259)
After-tax amounts reclassified	$	23,547		$	—	$	23,547
Other comprehensive loss
Pre-tax	$	(254,939)		$	(20,969)	$	(275,908)
Tax effect	56,127			—		56,127
Other comprehensive loss	$	(198,812)		$	(20,969)	$	(219,781)

(1) Net investment gains in the consolidated statements of income.

(2) Income tax expense in the consolidated statements of income.

(4) Investments in Fixed Maturity Securities

At December 31, 2022 and 2021, investments in fixed maturity securities were as follows:


(In thousands)	Amortized Cost			Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
Gains			Losses
December 31, 2022
Held to maturity:
State and municipal	$	47,802		$	(114)	$	4,239	$	—	$	51,927	$	47,688
Residential mortgage-backed	3,608			—		38		—		3,646		3,608

Total held to maturity	51,410			(114)		4,277		—		55,573		51,296
Available for sale:
U.S. government and government agency	960,479			—		937		(69,158)		892,258		892,258
State and municipal:
Special revenue	1,837,309			—		3,662		(119,474)		1,721,497		1,721,497
State general obligation	387,709			—		2,651		(21,335)		369,025		369,025
Pre-refunded	156,106			—		2,741		(7)		158,840		158,840
Corporate backed	210,228			—		334		(10,923)		199,639		199,639
Local general obligation	454,983			—		2,967		(16,853)		441,097		441,097
Total state and municipal	3,046,335			—		12,355		(168,592)		2,890,098		2,890,098
Mortgage-backed securities:
Residential	1,308,019			(18)		395		(171,595)		1,136,801		1,136,801
Commercial	547,757			—		215		(19,363)		528,609		528,609
Total mortgage-backed securities	1,855,776			(18)		610		(190,958)		1,665,410		1,665,410
Asset-backed securities	4,132,365			—		2,730		(152,322)		3,982,773		3,982,773
Corporate:
Industrial	3,491,645			(1,704)		4,439		(241,381)		3,252,999		3,252,999
Financial	2,585,247			(2,997)		5,505		(117,383)		2,470,372		2,470,372
Utilities	586,066			—		1,307		(36,325)		551,048		551,048
Other	441,230			—		—		(11,657)		429,573		429,573
Total corporate	7,104,188			(4,701)		11,251		(406,746)		6,703,992		6,703,992
Foreign government	1,564,930			(32,633)		4,283		(135,058)		1,401,522		1,401,522
Total available for sale	18,664,073			(37,352)		32,166		(1,122,834)		17,536,053		17,536,053
Total investments in fixed maturity securities	$	18,715,483		$	(37,466)	$	36,443	$	(1,122,834)	$	17,591,626	$	17,587,349


(In thousands)	Amortized Cost			Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
Gains			Losses
December 31, 2021
Held to maturity:
State and municipal	$	69,539		$	(387)	$	10,813	$	—	$	79,965	$	69,152
Residential mortgage-backed	4,829			—		632		—		5,461		4,829

Total held to maturity	74,368			(387)		11,445		—		85,426		73,981
Available for sale:
U.S. government and government agency	851,128			—		8,509		(4,294)		855,343		855,343
State and municipal:
Special revenue	2,016,382			—		62,961		(5,706)		2,073,637		2,073,637
State general obligation	388,110			—		23,152		(1,015)		410,247		410,247
Pre-refunded	202,633			—		14,891		(574)		216,950		216,950
Corporate backed	166,943			—		7,191		(1,532)		172,602		172,602
Local general obligation	401,974			—		29,455		(732)		430,697		430,697
Total state and municipal	3,176,042			—		137,650		(9,559)		3,304,133		3,304,133
Mortgage-backed securities:
Residential	940,744			—		9,896		(11,321)		939,319		939,319
Commercial	125,709			—		3,388		(341)		128,756		128,756
Total mortgage-backed securities	1,066,453			—		13,284		(11,662)		1,068,075		1,068,075
Asset-backed securities	4,504,950			—		4,409		(18,794)		4,490,565		4,490,565
Corporate:
Industrial	3,231,520			(16)		62,751		(21,092)		3,273,163		3,273,163
Financial	1,739,282			—		30,709		(6,591)		1,763,400		1,763,400
Utilities	396,242			—		13,262		(3,202)		406,302		406,302
Other	154,210			—		125		(1,525)		152,810		152,810
Total corporate	5,521,254			(16)		106,847		(32,410)		5,595,675		5,595,675
Foreign government	1,277,109			(22,222)		7,508		(47,494)		1,214,901		1,214,901
Total available for sale	16,396,936			(22,238)		278,207		(124,213)		16,528,692		16,528,692
Total investments in fixed maturity securities	$	16,471,304		$	(22,625)	$	289,652	$	(124,213)	$	16,614,118	$	16,602,673

——————————

(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors.

The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the years ended December 31, 2022 and 2021:


	State and Municipal
(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	387	$	798

Change in allowance for expected credit losses	(273)		(411)
Allowance for expected credit losses, end of period	$	114	$	387

The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the years ended December 31, 2022 and 2021:


	2022								2021
(In thousands)	Foreign Government		Corporate		Mortgage- Backed		Total		Foreign Government		Corporate		Total
Allowance for expected credit losses, beginning of period	$	22,222	$	16	$	—	$	22,238	$	1,264	$	518	$	1,782

Expected credit losses on securities for which credit losses were not previously recorded	1,910		2,648		21		4,579		19,072		16		19,088
Expected credit losses (gains) on securities for which credit losses were previously recorded	8,534		2,042		(3)		10,573		2,438		(513)		1,925
Reduction due to disposals	(33)		(5)		—		(38)		(552)		(5)		(557)
Allowance for expected credit losses, end of period	$	32,633	$	4,701	$	18	$	37,352	$	22,222	$	16	$	22,238

During the year ended December 31, 2022, the Company increased the allowance for expected credit losses for available for sale securities utilizing its credit loss assessment process and inputs used in its credit loss model due to an increase in unrealized losses primarily associated with foreign government securities. During the year ended December 31, 2021, the Company increased the allowance for expected credit losses primarily due to foreign government securities that had no reserve in prior periods.

The amortized cost and fair value of fixed maturity securities at December 31, 2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations.


(In thousands)	Amortized Cost (1)		Fair Value
Due in one year or less	$	1,570,480	$	1,527,090
Due after one year through five years	8,746,271		8,299,945
Due after five years through ten years	4,395,236		4,119,772
Due after ten years	2,143,998		1,975,763
Mortgage-backed securities	1,859,384		1,669,056
Total	$	18,715,369	$	17,591,626

(1) Amortized cost is reduced by the allowance for expected credit losses of $114 thousand related to held to maturity securities.

At December 31, 2022 and 2021, there were no investments, other than investments in United States government and government agency securities, which exceeded 10% of common stockholders’ equity. At December 31, 2022, investments with a carrying value of $1,910 million were on deposit in custodial or trust accounts, of which $1,218 million was on deposit with insurance regulators, $656 million was on deposit in support of the Company’s underwriting activities at Lloyd’s, $31 million was on deposit as security for reinsurance clients and $5 million was on deposit as security for letters of credit issued in support of the Company’s reinsurance operations.

(5) Investments in Equity Securities

At December 31, 2022 and 2021, investments in equity securities were as follows:


(In thousands)	Cost			Gross Unrealized				Fair Value		Carrying Value
Gains			Losses
December 31, 2022
Common stocks	$	855,987		$	192,165	$	(65,401)	$	982,751	$	982,751
Preferred stocks	259,341			1,053		(57,251)		203,143		203,143
Total	$	1,115,328		$	193,218	$	(122,652)	$	1,185,894	$	1,185,894

December 31, 2021
Common stocks	$	619,896		$	92,401	$	(16,894)	$	695,403	$	695,403
Preferred stocks	250,149			7,874		(12,183)		245,840		245,840
Total	$	870,045		$	100,275	$	(29,077)	$	941,243	$	941,243

(6) Arbitrage Trading Account

At December 31, 2022 and 2021, the fair value and carrying value of the arbitrage trading account were $944 million and $1,180 million, respectively. The primary focus of the trading account is merger arbitrage. Merger arbitrage is the business of investing in the securities of publicly held companies which are the targets in announced tender offers and mergers. Arbitrage investing differs from other types of investing in its focus on transactions and events believed likely to bring about a change in value over a relatively short time period (usually four months or less).

The Company uses put options and call options in order to mitigate the impact of potential changes in market conditions on the merger arbitrage trading account. These options are reported at fair value. As of December 31, 2022, the fair value of short option contracts outstanding was $0.1 thousand (notional amount of $10 thousand). Other than with respect to the use of these trading account securities, the Company does not make use of derivatives.

(7) Net Investment Income

Net investment income consists of the following:


(In thousands)	2022		2021		2020
Investment income (loss) earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	549,281	$	382,001	$	426,563
Investment funds	145,099		220,014		54,253
Arbitrage trading account	45,213		37,676		77,931
Real estate	(3,087)		7,703		24,027
Equity securities	52,600		32,020		10,172
Gross investment income	789,106		679,414		592,946
Investment expense	(9,921)		(7,796)		(9,125)
Net investment income	$	779,185	$	671,618	$	583,821

(8) Investment Funds

The Company evaluates whether it is an investor in a variable interest entity ("VIE"). Such entities do not have sufficient equity at risk to finance their activities without additional subordinated financial support, or the equity investors, as a group, do not have the characteristics of a controlling financial interest (primary beneficiary). The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose, and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE and on an ongoing basis. The Company is not the primary beneficiary in any of its investment funds, and accordingly, carries its interests in investments funds under the equity method of accounting.

The Company’s maximum exposure to loss with respect to these investments is limited to the carrying amount reported on the Company’s consolidated balance sheet and its unfunded commitments of $402 million as of December 31, 2022.

Investment funds consist of the following:


	Carrying Value as of December 31,				Income (Loss) From Investment Funds For the Year Ended
(In thousands)	2022		2021		2022		2021		2020
Financial services	$	465,683	$	431,818	$	34,030	$	98,893	$	34,763
Transportation	336,753		336,688		53,180		42,424		(616)
Real estate	204,644		273,690		48,723		29,484		7,543
Energy	116,432		150,224		1,425		22,118		(11,039)
Infrastructure	115,428		12,314		4,603		1,372		1,672
Other funds	369,608		275,878		3,138		25,723		21,930
Total	$	1,608,548	$	1,480,612	$	145,099	$	220,014	$	54,253

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

Financial services investment funds include the Company’s minority investment in Lifson Re, a Bermuda reinsurance company. Effective January 1, 2021, Lifson Re participated on a fully collateralized basis in a majority of the Company’s reinsurance placements for a 22.5% share of placed amounts. The percentage increased from 22.5% to 30.0% effective July 1, 2022. This pertains to all traditional reinsurance/retrocessional placements for both property and casualty business where there is more than one open market reinsurer participating. For the years ended December 31, 2022 and 2021, the Company ceded approximately $399 million and $245 million, respectively, of written premiums to Lifson Re.

Other funds include deferred compensation trust assets of $30 million and $34 million in 2022 and 2021, respectively. These assets support other liabilities reflected in the balance sheet of an equal amount for employees who have elected to defer a portion of their compensation. The change in the net asset value of the trust is recorded in other funds within net investment income with an offsetting equal amount within corporate expenses.

(9) Real Estate

Investment in real estate represents directly owned property held for investment, as follows:


	As of December 31,
(In thousands)	2022		2021
Properties in operation	$	1,114,167	$	1,626,826
Properties under development	226,455		225,682
Total	$	1,340,622	$	1,852,508

In 2022, properties in operation included a long-term ground lease in Washington, D.C., an office complex in New York City and the completed portion of a mixed-use project in Washington D.C. Properties in operation are net of accumulated depreciation and amortization of $33,206,000 and $57,391,000 as of December 31, 2022 and 2021, respectively. Related

depreciation expense was $12,269,000 and $19,688,000 for the years ended December 31, 2022 and 2021, respectively. Future minimum rental income expected on operating leases relating to properties in operation is $32,282,796 in 2023, $33,528,105 in 2024, $31,015,149 in 2025, $29,250,535 in 2026, $28,334,384 in 2027 and $510,771,307 thereafter.

During the first quarter of 2022, the Company sold a real estate investment in London (proceeds from the real estate and related entity is presented on the business disposition line within the consolidated statements of cash flows).

A mixed-use project in Washington, D.C. had been under development in 2022 and 2021, with the completed portion as noted above reported in properties in operation as of December 31, 2022.

(10) Loans Receivable

At December 31, 2022 and 2021, loans receivable were as follows:


	As of December 31,
(In thousands)	2022		2021
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	173,616	$	89,431
Commercial loans	19,386		25,741
Total	$	193,002	$	115,172

Fair value:
Real estate loans	$	168,595	$	90,793
Commercial loans	19,386		25,741
Total	$	187,981	$	116,534

The real estate loans are secured by commercial and residential real estate primarily located in London and New York. These loans generally earn interest at fixed or stepped interest rates and have maturities through 2026. The commercial loans are with small business owners who have secured the related financing with the assets of the business. Commercial loans primarily earn interest on a fixed basis and have varying maturities generally not exceeding 10 years.

Loans receivable in non-accrual status was none and $0.2 million as of December 31, 2022 and 2021, respectively.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the years ended December 31, 2022 and 2021:


	2022						2021
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Allowance for expected credit losses, beginning of period	$	1,362	$	356	$	1,718	$	1,683	$	3,754	$	5,437

Change in allowance for expected credit losses	(262)		335		73		(321)		(3,398)		(3,719)
Allowance for expected credit losses, end of period	$	1,100	$	691	$	1,791	$	1,362	$	356	$	1,718

The Company monitors the performance of its loans receivable and assesses the ability of the borrower to pay principal and interest based upon loan structure, underlying property values, cash flow and related financial and operating performance of the property and market conditions.

In evaluating the real estate loans, the Company considers their credit quality indicators, including loan to value ratios, which compare the outstanding loan amount to the estimated value of the property, the borrower’s financial condition and performance with respect to loan terms, the position in the capital structure, the overall leverage in the capital structure and other market conditions.

(11) Net Investment Gains

Net investment gains were as follows:


(In thousands)	2022		2021		2020
Net investment gains:
Fixed maturity securities:
Gains	$	4,224	$	18,981	$	27,819
Losses	(11,654)		(6,975)		(56,096)
Equity securities (1):
Net realized (losses) gains on investment sales	(12,879)		16,365		32,647
Change in unrealized losses	(632)		(38,455)		(25,868)
Investment funds	12,407		44,778		31,481
Real estate (2)	293,525		94,911		101,554
Loans receivable	(32)		(881)		—
Other	(67,648)		(21,766)		(38,023)
Net realized and unrealized gains on investments in earnings before allowance for expected credit losses	217,311		106,958		73,514
Change in allowance for expected credit losses on investments:
Fixed maturity securities	(14,841)		(20,045)		33,134
Loans receivable	(73)		3,719		(3,648)
Change in allowance for expected credit losses on investments	(14,914)		(16,326)		29,486
Net investment gains	202,397		90,632		103,000
Income tax expense	(42,670)		(17,710)		(21,630)
After-tax net investment gains	$	159,727	$	72,922	$	81,370


Change in unrealized investment (losses) gains:
Fixed maturity securities without allowance for expected credit losses	$	(1,216,292)	$	(262,221)	$	134,129
Fixed maturity securities with allowance for expected credit losses	(28,370)		10,124		32,004

Investment funds	(2,019)		(1,270)		2,280
Other	(1,447)		(1,572)		(3,768)
Total change in unrealized investment (losses) gains	(1,248,128)		(254,939)		164,645
Income tax benefit (expense)	264,325		56,127		(24,395)
Noncontrolling interests	(2)		(2)		(2)
After-tax change in unrealized investment (losses) gains	$	(983,805)	$	(198,814)	$	140,248

(1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized (losses) gains consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.

(2) During March 2022, the Company realized a gain on the sale of a real estate investment in London, U.K. of $251 million, net of transaction expenses and the foreign currency impact, including the reversal of the currency translation adjustment.

(12) Fixed Maturity Securities in an Unrealized Loss Position

The following tables summarize all fixed maturity securities in an unrealized loss position at December 31, 2022 and 2021 by the length of time those securities have been continuously in an unrealized loss position.


	Less Than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
December 31, 2022
U.S. government and government agency	$	285,391	$	10,219	$	453,520	$	58,939	$	738,911	$	69,158
State and municipal	1,720,443		89,272		598,797		79,320		2,319,240		168,592
Mortgage-backed securities	1,099,549		75,430		473,318		115,528		1,572,867		190,958
Asset-backed securities	1,569,647		48,390		2,176,638		103,932		3,746,285		152,322
Corporate	3,690,856		150,115		2,349,281		256,631		6,040,137		406,746
Foreign government	477,672		29,815		711,786		105,243		1,189,458		135,058
Fixed maturity securities	$	8,843,558	$	403,241	$	6,763,340	$	719,593	$	15,606,898	$	1,122,834





December 31, 2021
U.S. government and government agency	$	487,712	$	4,026	$	17,021	$	268	$	504,733	$	4,294
State and municipal	502,333		7,403		29,547		2,156		531,880		9,559
Mortgage-backed securities	558,751		6,900		106,130		4,762		664,881		11,662
Asset-backed securities	3,832,944		18,503		75,385		291		3,908,329		18,794
Corporate	2,582,860		29,322		51,095		3,088		2,633,955		32,410
Foreign government	758,975		15,793		82,057		31,701		841,032		47,494
Fixed maturity securities	$	8,723,575	$	81,947	$	361,235	$	42,266	$	9,084,810	$	124,213

Substantially all of the securities in an unrealized loss position are rated investment grade, except for the securities in the foreign government classification. A significant amount of the unrealized loss on foreign government securities is the result of changes in currency exchange rates.

Fixed Maturity Securities — A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at December 31, 2022 is presented in the table below:


($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Foreign government	36	$	119,332	$	73,900
Corporate	10	39,347		4,649
State and municipal	1	12,247		2,756
Mortgage-backed securities	14	4,464		269
Asset-backed securities	1	16		10
Total	62	$	175,406	$	81,584

For fixed maturity securities that management does not intend to sell or to be required to sell, the portion of the decline in value that is considered to be due to credit factors is recognized in earnings, and the portion of the decline in value that is considered to be due to non-credit factors is recognized in other comprehensive income.

The Company has evaluated its fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due.

(13) Fair Value Measurements

The Company’s fixed maturity and equity securities classified as available for sale and its trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date”. The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable.

Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available.

Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation.

If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information.

For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate.

The following tables present the assets and liabilities measured at fair value as of December 31, 2022 and 2021 by level:


(In thousands)	Total		Level 1		Level 2		Level 3
December 31, 2022
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	892,258	$	—	$	892,258	$	—
State and municipal	2,890,098		—		2,890,098		—
Mortgage-backed securities	1,665,410		—		1,665,410		—
Asset-backed securities	3,982,773		—		3,982,773		—
Corporate	6,703,992		—		6,703,992
Foreign government	1,401,522		—		1,401,522		—
Total fixed maturity securities available for sale	17,536,053		—		17,536,053		—
Equity securities:
Common stocks	982,751		978,991		1,161		2,599
Preferred stocks	203,143		—		191,844		11,299
Total equity securities	1,185,894		978,991		193,005		13,898
Arbitrage trading account	944,230		822,192		118,448		3,590

Total	$	19,666,177	$	1,801,183	$	17,847,506	$	17,488
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	—	$	—	$	—

December 31, 2021
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	855,343	$	—	$	855,343	$	—
State and municipal	3,304,133		—		3,304,133		—
Mortgage-backed securities	1,068,075		—		1,068,075		—
Asset-backed securities	4,490,565		—		4,490,565		—
Corporate	5,595,675		—		5,595,675		—
Foreign government	1,214,901		—		1,214,901		—
Total fixed maturity securities available for sale	16,528,692		—		16,528,692		—
Equity securities:
Common stocks	695,403		684,470		1,639		9,294
Preferred stocks	245,840		—		234,544		11,296
Total equity securities	941,243		684,470		236,183		20,590
Arbitrage trading account	1,179,606		1,153,079		26,527		—
Total	$	18,649,541	$	1,837,549	$	16,791,402	$	20,590
Liabilities:
Trading account securities sold but not yet purchased	$	1,169	$	1,137	$	32	$	—

The following tables summarize changes in Level 3 assets and liabilities for the years ended December 31, 2022 and 2021:


	Gains (Losses) Included in:
(In thousands)	Beginning Balance		Earnings (Losses)		Other Comprehensive Income (Losses)		Impairments		Purchases		Sales		Paydowns/Maturities		Transfers In / Out		Ending Balance
Year ended December 31, 2022
Assets:
Fixed maturity securities available for sale:

Corporate	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total	—		—		—		—		—		—		—		—		—
Equity securities:
Common stocks	9,294		(6,695)		—		—		—		—		—		—		2,599
Preferred stocks	11,296		3		—		—		925		(925)		—		—		11,299
Total	20,590		(6,692)		—		—		925		(925)		—		—		13,898
Arbitrage trading account	—		(179)		—		—		4,685		(917)		—		1		3,590
Total	$	20,590	$	(6,871)	$	—	$	—	$	5,610	$	(1,842)	$	—	$	1	$	17,488
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Year ended December 31, 2021
Assets:
Fixed maturity securities available for sale:

Corporate	$	1,000	$	—	$	—	$	—	$	—	$	(1,000)	$	—	$	—	$	—
Total	1,000		—		—		—		—		(1,000)		—		—		—
Equity securities:
Common stocks	9,215		640		—		—		—		(561)		—		—		9,294
Preferred stocks	9,331		(35)		—		—		2,000		—		—		—		11,296
Total	18,546		605		—		—		2,000		(561)		—		—		20,590
Arbitrage trading account	—		8		—		—		—		(8)		—		—		—
Total	$	19,546	$	613	$	—	$	—	$	2,000	$	(1,569)	$	—	$	—	$	20,590
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	1	$	—	$	—	$	(1)	$	—	$	—	$	—	$	—

For the years ended December 31, 2022 and 2021, there were no fixed maturity security transferred into or out of Level 3.

(14) Reserves for Losses and Loss Expenses

The Company's reserves for losses and loss expenses are comprised of case reserves and incurred but not reported liabilities (IBNR). When a claim is reported, a case reserve is established for the estimated ultimate payment based upon known information about the claim. As more information about the claim becomes available over time, case reserves are adjusted up or down as appropriate. Reserves are also established on an aggregate basis to provide for IBNR liabilities and expected loss reserve development on reported claims.

Loss reserves included in the Company’s financial statements represent management’s best estimates based upon an actuarially derived point estimate and other considerations. The Company uses a variety of actuarial techniques and methods to derive an actuarial point estimate for each business. These methods may include paid loss development, incurred loss development, paid and incurred Bornhuetter-Ferguson methods and frequency and severity methods. In circumstances where one actuarial method is considered more credible than the others, that method is used to set the point estimate. The actuarial point estimate may also be based on a judgmental weighting of estimates produced from each of the methods considered. Industry loss experience is used to supplement the Company’s own data in selecting “tail factors” in areas where the Company’s own data is limited. The actuarial data is analyzed by line of business, coverage and accident or policy year, as appropriate, for each business.

The establishment of the actuarially derived loss reserve point estimate also includes consideration of qualitative factors that may affect the ultimate losses. These qualitative considerations include, among others, the impact of re-underwriting initiatives, changes in claims handling procedures, changes in the mix of business, changes in distribution sources and changes in policy terms and conditions.

The key assumptions used to arrive at the best estimate of loss reserves are the expected loss ratios, rate of loss cost inflation, and reported and paid loss emergence patterns. Expected loss ratios represent management’s expectation of losses at the time the business is priced and written, before any actual claims experience has emerged. This expectation is a significant determinant of the estimate of loss reserves for recently written business where there is little paid or incurred loss data to consider. Expected loss ratios are generally derived from historical loss ratios adjusted for the impact of rate changes, loss cost trends and known changes in the type of risks underwritten. Expected loss ratios are estimated for each key line of business within each business. Expected loss cost inflation is particularly important for the long-tail lines, such as excess casualty, and claims with a high medical component, such as workers’ compensation. Reported and paid loss emergence patterns are used to project current reported or paid loss amounts to their ultimate settlement value. Loss development factors are based on the historical emergence patterns of paid and incurred losses, and are derived from the Company’s own experience and industry data. The paid loss emergence pattern is also significant to excess and assumed workers’ compensation reserves because those reserves are discounted to their estimated present value based upon such estimated payout patterns.

Loss frequency and severity are measures of loss activity that are considered in determining the key assumptions described in our discussion of loss and loss expense reserves, including expected loss ratios, rate of loss cost inflation and reported and paid loss emergence patterns. Loss frequency is a measure of the number of claims per unit of insured exposure, and loss severity is a measure of the average size of claims. Factors affecting loss frequency include the effectiveness of loss controls and safety programs and changes in economic activity or weather patterns. Factors affecting loss severity include changes in policy limits, retentions, rate of inflation and judicial interpretations.

Another factor affecting estimates of loss frequency and severity is the loss reporting lag, which is the period of time between the occurrence of a loss and the date the loss is reported to the Company. The length of the loss reporting lag affects our ability to accurately predict loss frequency (loss frequencies are more predictable for lines with short reporting lags) as well as the amount of reserves needed for incurred but not reported losses (less IBNR is required for lines with short reporting lags). As a result, loss reserves for lines with short reporting lags are likely to have less variation from initial loss estimates. For lines with short reporting lags, which include commercial automobile, primary workers’ compensation, other liability (claims-made) and property business, the key assumption is the loss emergence pattern used to project ultimate loss estimates from known losses paid or reported to date. For lines of business with long reporting lags, which include other liability (occurrence), products liability, excess workers’ compensation and liability reinsurance, the key assumption is the expected loss ratio since there is often little paid or incurred loss data to consider. Historically, the Company has experienced less variation from its initial loss estimates for lines of businesses with short reporting lags than for lines of business with long reporting lags.

The key assumptions used in calculating the most recent estimate of the loss reserves are reviewed each quarter and adjusted, to the extent necessary, to reflect the latest reported loss data, current trends and other factors observed.

A claim may be defined as an event, as a claimant (number of parties claiming damages from an event) or by exposure type (e.g., an event may give rise to two parties, each claiming loss for bodily injury and property damage).

The most commonly used claim count method is by event. Most of the Company's businesses use the number of events to define and quantify the number of claims. However, in certain lines of business, where it is common for multiple parties to claim damages arising from a single event, a business may quantify claims on the basis of the number of separate parties involved in an event. This may be the case with businesses writing substantial automobile or transportation exposure.

Claim counts for assumed reinsurance will vary based on whether the business is written on a facultative or treaty basis. Further variability as respects treaty claim counts may be reflective of the nature of the treaty, line of business coverage, and type of participation such as quota share or excess of loss contracts. Accordingly, the claim counts have been excluded from the below Reinsurance & Monoline Excess segment tables due to this variability.

The claim count information set forth in the tables presented below may not provide an accurate reflection of ultimate loss payouts by product line.

The following tables present undiscounted incurred and paid claims development as of December 31, 2022, net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities (IBNR). The information about incurred and paid claims development for the years ended December 31, 2013 to 2021 is presented as supplementary information. To enhance the comparability of the loss development data, the Company has removed the impact of foreign exchange rate movements by using the December 31, 2022 exchange rate for all periods.

Insurance

Other Liability

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2022
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	749,261	$	788,581	$	779,908	$	779,706	$	800,593	$	806,914	$	801,689	$	805,915	$	807,998	$	809,358	$	21,362	26
2014			844,832		845,564		843,501		848,138		861,313		867,400		862,749		861,382		862,630		35,808		28
2015					948,389		984,262		958,734		961,761		964,301		974,345		981,071		1,010,796		55,430		27
2016							1,016,106		1,009,051		1,018,253		1,029,821		1,043,948		1,059,897		1,091,569		96,310		28
2017									1,065,550		1,099,396		1,121,833		1,138,785		1,178,604		1,249,129		142,974		28
2018											1,103,900		1,131,549		1,121,317		1,156,157		1,232,803		181,880		27
2019													1,240,560		1,237,336		1,237,824		1,294,681		292,625		28
2020															1,339,565		1,212,790		1,158,880		489,718		22
2021																	1,534,580		1,390,790		841,854		23
2022																			1,823,680		1,507,284		20
Total																			$	11,924,316


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	63,243	$	188,023	$	330,127	$	470,566	$	585,608	$	646,257	$	691,495	$	717,908	$	738,858	$	761,461
2014			78,705		190,419		337,426		478,924		592,828		678,490		728,718		758,098		781,533
2015					82,638		210,151		381,328		536,855		674,665		755,641		814,191		872,657
2016							69,407		208,828		389,862		557,998		676,735		766,515		870,981
2017									79,887		255,603		453,097		638,934		774,738		930,630
2018											86,798		264,299		435,729		615,753		806,869
2019													88,195		275,343		471,239		704,928
2020															72,232		225,068		423,283
2021																	76,612		267,685
2022																			93,519
Total																			$	6,513,546
	Reserves for loss and loss adjustment expenses before 2013, net of reinsurance																		125,357
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	5,536,127

Workers' Compensation

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2022
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	552,570	$	547,295	$	546,995	$	543,238	$	547,000	$	542,274	$	541,926	$	540,322	$	538,503	$	534,948	$	11,473	53
2014			639,436		637,307		627,767		617,242		615,435		604,030		600,194		602,000		598,977		21,528		57
2015					712,800		690,525		650,997		641,169		626,432		620,741		617,478		612,687		29,213		58
2016							702,716		696,339		684,700		660,520		651,278		657,972		654,385		36,834		58
2017									762,093		733,505		689,622		673,216		683,880		682,153		41,944		58
2018											778,964		724,697		715,055		724,056		721,170		43,766		56
2019													784,281		721,018		732,762		734,034		67,254		54
2020															725,245		716,430		704,008		96,322		42
2021																	742,687		701,703		149,447		45
2022																			772,620		348,348		41
Total																			$	6,716,685


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	117,900	$	277,538	$	363,028	$	414,160	$	447,894	$	466,580	$	479,104	$	489,075	$	496,809	$	502,181
2014			148,405		319,743		412,611		471,235		503,915		521,141		531,475		538,914		547,894
2015					139,320		323,744		421,734		477,541		512,933		531,512		544,849		557,215
2016							142,998		338,835		446,072		504,850		537,861		558,934		572,669
2017									153,456		362,299		468,817		525,753		559,198		583,258
2018											171,006		397,464		508,546		574,889		613,675
2019													184,715		397,376		515,914		581,003
2020															172,478		380,454		485,203
2021																	172,729		384,867
2022																			180,982
Total																			$	5,008,947
			Reserves for loss and loss adjustment expenses before 2013, net of reinsurance																214,233
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,921,971

Professional Liability

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2022
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	265,061	$	244,556	$	241,046	$	246,943	$	267,978	$	276,566	$	281,888	$	279,824	$	279,870	$	283,216	$	4,681	7
2014			250,740		244,574		257,309		241,376		236,961		255,850		254,868		254,243		253,244		12,284		7
2015					257,946		256,595		272,899		274,546		290,141		281,718		282,065		286,271		19,949		8
2016							309,417		323,222		360,110		400,799		438,065		467,545		463,102		33,241		9
2017									333,267		332,400		338,723		377,410		384,416		393,409		53,786		10
2018											334,848		322,176		333,408		359,566		382,409		73,828		10
2019													336,129		332,385		345,614		354,283		93,387		11
2020															394,107		375,577		337,961		159,767		11
2021																	524,879		471,266		315,877		11
2022																			648,941		543,483		10
Total																			$	3,874,102


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	23,295	$	63,503	$	118,767	$	176,079	$	204,955	$	246,616	$	255,863	$	261,106	$	267,776	$	273,094
2014			19,225		83,063		137,341		174,524		197,272		213,888		225,236		234,459		237,145
2015					20,331		85,047		139,205		186,688		215,408		232,143		239,150		246,031
2016							28,517		102,173		201,019		254,872		296,863		356,812		404,742
2017									36,503		96,312		162,829		243,088		261,225		306,713
2018											28,101		99,598		155,212		198,697		244,284
2019													31,674		97,466		147,985		200,521
2020															28,106		80,408		129,168
2021																	28,586		86,056
2022																			33,446
Total																			$	2,161,200
	Reserves for loss and loss adjustment expenses before 2013, net of reinsurance																		36,484
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	1,749,386

Commercial Automobile

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2022
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	327,514	$	349,136	$	368,894	$	376,243	$	366,646	$	366,166	$	365,275	$	364,207	$	364,439	$	364,607	$	103	44
2014			363,891		385,241		416,802		414,732		412,120		411,920		407,470		406,589		407,970		403		47
2015					389,577		415,446		421,522		429,608		430,557		428,981		426,107		427,923		1,362		53
2016							429,329		429,074		440,334		441,408		438,192		437,884		439,682		2,244		52
2017									430,440		428,419		430,198		434,170		439,991		444,472		4,800		47
2018											442,610		462,544		478,966		494,315		521,667		10,720		46
2019													483,019		488,291		504,813		530,876		22,483		45
2020															523,736		428,759		442,163		31,172		30
2021																	614,422		596,810		111,412		38
2022																			792,553		342,905		40
Total																			$	4,968,723


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	142,929	$	218,596	$	267,253	$	321,855	$	342,961	$	352,792	$	361,499	$	362,252	$	362,624	$	364,147
2014			155,564		237,648		326,854		364,054		392,658		400,577		403,273		404,259		405,004
2015					159,987		263,663		323,429		368,448		396,018		409,426		415,170		418,993
2016							183,160		277,665		339,657		388,554		407,989		418,499		426,955
2017									180,545		267,326		326,861		371,761		401,844		419,545
2018											180,056		281,475		350,110		412,874		463,117
2019													185,236		290,124		374,479		440,378
2020															142,815		228,357		308,451
2021																	180,860		319,941
2022																			253,206
Total																			$	3,819,737
			Reserves for loss and loss adjustment expenses before 2013, net of reinsurance																3,731
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,152,717

Short-tail lines

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2022
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	565,391	$	573,905	$	565,810	$	549,518	$	548,169	$	544,681	$	542,863	$	542,148	$	541,857	$	541,728	$	1,125	25
2014			691,971		697,845		659,563		658,252		659,230		659,568		662,012		660,250		658,557		1,549		30
2015					736,523		726,287		723,206		721,789		713,899		712,361		710,663		710,978		3,842		32
2016							771,390		775,308		762,460		757,009		751,530		753,952		752,604		3,363		34
2017									752,727		753,326		747,630		747,003		746,603		747,869		8,195		42
2018											759,634		748,931		746,265		744,544		742,289		11,491		48
2019													721,073		701,241		691,015		684,708		18,311		43
2020															900,683		904,580		922,333		24,934		38
2021																	828,187		832,183		57,246		36
2022																			944,842		235,121		32
Total																			$	7,538,091


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	310,750	$	480,140	$	526,031	$	527,789	$	534,569	$	535,756	$	536,416	$	537,582	$	538,985	$	539,081
2014			368,865		587,607		609,948		628,440		643,619		650,816		653,272		653,784		654,089
2015					392,921		608,748		664,084		686,029		695,563		701,341		708,065		708,214
2016							416,611		669,891		711,385		726,549		731,651		738,390		739,244
2017									445,285		689,662		718,538		730,688		734,509		741,685
2018											414,910		661,741		708,214		725,138		725,228
2019													404,975		615,869		645,374		657,819
2020															460,434		784,670		845,714
2021																	405,512		698,092
2022																			472,024
Total																			$	6,781,190
	Reserves for loss and loss adjustment expenses before 2013, net of reinsurance																		4,727
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	761,628

Reinsurance & Monoline Excess

Casualty

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2022
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR
2013	$	318,365	$	269,340	$	272,475	$	282,307	$	291,105	$	298,317	$	302,595	$	301,415	$	302,672	$	302,135	$	12,543
2014			319,454		318,904		318,443		330,382		324,693		324,150		335,883		336,990		341,649		16,184
2015					259,019		231,430		230,085		252,277		293,094		303,261		304,805		309,317		19,728
2016							240,655		252,638		245,268		267,850		301,663		301,355		310,451		24,928
2017									231,082		220,699		238,883		261,482		281,254		298,486		36,491
2018											221,193		210,397		230,790		246,898		261,148		44,474
2019													236,318		230,460		239,131		240,848		72,504
2020															299,602		293,345		289,878		136,865
2021																	359,952		346,736		243,222
2022																			446,676		402,204
Total																			$	3,147,324


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	28,945	$	63,745	$	108,852	$	144,331	$	178,060	$	205,553	$	225,882	$	241,573	$	254,273	$	263,467
2014			21,297		68,374		115,779		155,070		197,996		227,448		252,155		271,512		284,360
2015					17,888		48,442		91,140		141,254		178,521		205,289		233,643		250,880
2016							19,904		61,770		100,200		140,299		171,719		205,354		225,077
2017									16,469		40,085		69,350		123,614		147,311		175,059
2018											11,076		40,953		77,498		109,474		141,553
2019													14,560		39,091		64,020		94,856
2020															20,750		49,664		81,789
2021																	10,918		43,838
2022																			11,595
Total																			$	1,572,474
	Reserves for loss and loss adjustment expenses before 2013, net of reinsurance																		417,861
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,992,711

Monoline Excess

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2022
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR
2013	$	63,995	$	50,355	$	48,143	$	44,162	$	40,207	$	35,120	$	31,752	$	29,758	$	25,701	$	23,306	$	5,184
2014			63,561		57,650		49,570		45,823		41,671		42,541		42,618		40,652		35,707		7,484
2015					69,977		57,897		50,099		45,115		39,682		39,781		36,774		30,104		8,683
2016							72,657		70,281		71,404		64,957		65,485		65,222		61,432		13,634
2017									76,701		80,508		70,749		71,025		66,795		62,647		16,529
2018											77,820		72,505		71,448		66,180		57,847		20,826
2019													78,929		77,482		76,242		73,978		21,878
2020															84,354		83,468		80,452		35,638
2021																	98,110		87,980		48,670
2022																			98,923		66,865
Total																			$	612,376


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	647	$	1,897	$	3,588	$	3,008	$	3,396	$	4,418	$	5,349	$	6,476	$	8,805	$	9,490
2014			377		2,341		3,354		4,175		5,808		7,595		11,154		11,938		13,491
2015					2,069		2,481		3,272		4,099		4,416		5,083		5,421		6,457
2016							2,498		4,783		5,573		5,928		7,685		9,883		11,819
2017									6,282		12,810		15,356		17,327		18,375		19,275
2018											6,141		8,230		9,368		10,359		12,414
2019													6,241		10,884		12,728		15,436
2020															4,869		8,699		10,471
2021																	4,586		6,026
2022																			5,898
Total																			$	110,777
	Reserves for loss and loss adjustment expenses before 2013, net of reinsurance																		644,712
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	1,146,311

Property

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2022
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR
2013	$	141,380	$	112,616	$	114,100	$	111,937	$	112,572	$	111,890	$	109,697	$	107,552	$	106,316	$	105,711	$	72
2014			112,907		96,492		97,195		99,941		99,176		98,838		99,244		97,315		96,656		177
2015					127,118		117,452		131,625		130,301		129,398		131,071		130,642		131,342		1,061
2016							167,901		174,423		181,634		180,885		186,159		184,150		185,249		1,482
2017									206,560		200,394		199,410		197,978		191,867		192,379		1,209
2018											108,220		112,068		103,104		105,101		102,953		1,754
2019													103,113		77,062		81,858		81,014		3,637
2020															114,590		117,867		116,774		3,946
2021																	133,938		146,761		28,634
2022																			167,039		78,818
Total																			$	1,325,878


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	36,577	$	74,572	$	92,625	$	101,538	$	104,323	$	106,043	$	107,603	$	104,403	$	104,388	$	105,059
2014			38,780		66,829		82,119		88,257		91,390		93,099		94,565		95,198		95,633
2015					53,474		89,121		109,051		118,552		122,566		125,439		126,848		127,995
2016							78,920		133,516		157,404		168,506		175,949		178,060		182,411
2017									72,126		141,340		171,675		179,749		182,609		185,823
2018											33,991		65,079		82,259		87,736		94,870
2019													23,081		54,499		68,457		71,054
2020															26,574		65,575		86,888
2021																	15,235		71,797
2022																			25,584
Total																			$	1,047,114
	Reserves for loss and loss adjustment expenses before 2013, net of reinsurance																		1,036
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	279,800

The reconciliation of the net incurred and paid claims development tables to the reserves for losses and loss expenses in the consolidated balance sheet is as follows:


(In thousands)		December 31, 2022
Undiscounted reserves for loss and loss expenses, net of reinsurance:
	Other liability	$	5,536,127
	Workers' compensation	1,921,971
	Professional liability	1,749,386
	Commercial automobile	1,152,717
	Short-tail lines	761,628
	Other	124,586
	Insurance	11,246,415
	Casualty	1,992,711
	Monoline excess	1,146,311
	Property	279,800
	Reinsurance & Monoline Excess	3,418,822
Total undiscounted reserves for loss and loss expenses, net of reinsurance		$	14,665,237


(In thousands)		December 31, 2022
Due from reinsurers on unpaid claims:
	Other liability	$	730,029
	Workers' compensation	221,769
	Professional liability	1,019,810
	Commercial automobile	67,895
	Short-tail lines	414,549
	Other	97,511
	Insurance	2,551,563
	Casualty	108,390
	Monoline excess	35,926
	Property	66,465
	Reinsurance & Monoline Excess	210,781
Total due from reinsurers on unpaid claims		$	2,762,344


(In thousands)		December 31, 2022
Loss reserve discount:
	Other liability	$	—
	Workers' compensation	(12,491)
	Professional liability	—
	Commercial automobile	—
	Short-tail lines	—
	Other	—
	Insurance	(12,491)
	Casualty	(84,668)
	Monoline excess	(319,199)
	Property	—
	Reinsurance & Monoline Excess	(403,867)
Total loss reserve discount		$	(416,358)
Total gross reserves for loss and loss expenses		$	17,011,223

The following is supplementary information regarding average historical claims duration as of December 31, 2022:


Insurance
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1		2		3		4		5		6		7		8		9		10
Other liability	6.9	%	13.7	%	16.3	%	16.0	%	13.1	%	9.2	%	6.7	%	4.2	%	2.7	%	2.8	%
Workers' compensation	23.5	%	29.9	%	15.7	%	9.1	%	5.5	%	3.2	%	2.1	%	1.7	%	1.5	%	1.0	%
Professional liability	7.4	%	17.6	%	17.7	%	15.7	%	9.1	%	10.3	%	5.1	%	2.6	%	3.0	%	1.9	%
Commercial automobile	36.1	%	20.9	%	15.5	%	11.5	%	6.7	%	2.8	%	1.6	%	0.4	%	0.1	%	0.4	%
Short-tail lines	54.7	%	32.8	%	5.8	%	2.0	%	1.0	%	0.8	%	0.4	%	0.1	%	0.2	%	—	%

Reinsurance & Monoline Excess
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1		2		3		4		5		6		7		8		9		10
Casualty	5.7	%	10.9	%	12.5	%	13.7	%	11.0	%	9.3	%	7.4	%	5.5	%	4.0	%	3.0	%
Monoline excess	6.1	%	4.7	%	3.1	%	1.7	%	2.6	%	3.3	%	4.6	%	3.5	%	7.2	%	2.9	%
Property	30.5	%	33.2	%	16.1	%	5.8	%	3.6	%	1.7	%	1.6	%	0.3	%	0.1	%	—	%

The table below provides a reconciliation of the beginning and ending reserve balances:


(In thousands)	2022		2021		2020
Net reserves at beginning of year	$	12,848,362	$	11,620,393	$	10,697,998
Cumulative effect adjustment resulting from changes in accounting principles (1)	—		—		5,927
Restated net reserves at beginning of period	12,848,362		11,620,393		10,703,925
Net provision for losses and loss expenses:
Claims occurring during the current year (2)	5,774,713		4,921,191		4,432,937
Increase in estimates for claims occurring in prior years (3)	54,511		863		627
Loss reserve discount accretion	32,526		31,906		35,142
Total	5,861,750		4,953,960		4,468,706
Net payments for claims:
Current year	1,068,577		887,896		921,054
Prior year	3,279,333		2,777,798		2,677,595
Total	4,347,910		3,665,694		3,598,649
Foreign currency translation	(113,323)		(60,297)		46,411
Net reserves at end of year	14,248,879		12,848,362		11,620,393
Ceded reserve at end of year	2,762,344		2,542,526		2,164,037
Gross reserves at end of year	$	17,011,223	$	15,390,888	$	13,784,430

Net change in premiums and losses occurring in prior years:
Increase in estimates for claims occurring in prior years (3)	$	(54,511)	$	(863)	$	(627)
Retrospective premium adjustments for claims occurring in prior years (4)	18,106		7,510		16,807
Net premium and reserve development on prior years	$	(36,405)	$	6,647	$	16,180

(1)The cumulative effect adjustment resulting from changes in accounting principals relates to the allowance for expected credit losses on reinsurance recoverables that commenced on January 1, 2020 due to the adoption of ASU 2016-13. See Note 1 for more details.

(2)Claims occurring during the current year are net of loss reserve discounts of $35 million, $21 million and $10 million in 2022, 2021, and 2020, respectively.

(3)The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years increased by $16 million in 2022, decreased by $19 million in 2021, and decreased by $21 million in 2020, respectively.

(4)For certain retrospectively rated insurance polices and reinsurance agreements, changes in loss and loss expenses for prior years are offset by additional or return premiums.

The COVID-19 global pandemic has impacted, and may further impact, the Company’s results through its effect on claim frequency and severity. Loss cost trends have been impacted and may be further impacted by COVID-19-related claims in certain lines of business. Losses incurred from COVID-19-related claims have been offset, to a certain extent, by lower claim frequency in certain lines of our businesses; however, as the economy and legal systems have reopened, the benefit of lower claim frequency has partially abated. The ultimate net impact of COVID-19 on the Company remains uncertain. New variants of the COVID-19 virus continue to create risks with respect to loss costs and the potential for renewed impact of the other effects of COVID-19 associated with economic conditions, inflation, and social distancing and work from home rules.

Most of the COVID-19-related claims reported to the Company to date involve certain short-tailed lines of business, including contingency and event cancellation, business interruption, and film production delay. The Company has also received COVID-19-related claims for longer-tailed casualty lines of business such as workers’ compensation and other liability; however, the estimated incurred loss impact for these reported claims are not material at this time. Given the continuing uncertainty regarding the pandemic's pervasiveness, the future impact that the pandemic may have on claim frequency and severity remains uncertain at this time.

The Company has estimated the potential COVID-19 impact to its contingency and event cancellation, workers’ compensation, and other lines of business under a number of possible scenarios; however, due to COVID-19’s continued

evolving impact, there remains uncertainty around the Company’s COVID-19 reserves. In addition, should the pandemic continue or worsen as a result of new COVID-19 variants or otherwise, governments in the jurisdictions where we operate may impose restrictions, including lockdowns, as well as renew their efforts to expand policy coverage terms beyond the policy’s intended coverage. Accordingly, losses arising from these actions, and the other factors described above, could exceed the Company’s reserves established for those related policies.

As of December 31, 2022, the Company had recognized losses for COVID-19-related claims activity, net of reinsurance, of approximately $341 million, of which $290 million relates to the Insurance segment and $51 million relates to the Reinsurance & Monoline Excess segment. Such $341 million of COVID-19-related losses included $337 million of reported losses and $4 million of IBNR. For the year ended December 31, 2022, the Company recognized current accident year losses for COVID-19-related claims activity, net of reinsurance, of approximately $5 million, of which $3 million relates to the Insurance segment and $2 million relates to the Reinsurance & Monoline Excess segment.

Unfavorable prior year development (net of additional and return premiums) was $36 million in 2022.

Insurance – Reserves for the Insurance segment developed unfavorably by $40 million in 2022 (net of additional and return premiums). The unfavorable development in the segment primarily related to COVID-19 losses at two businesses. These businesses wrote policies providing coverage for event cancellation and film production delay which were heavily impacted by losses directly caused by the COVID-19 pandemic. Most of this COVID-19 related unfavorable development emerged during the third quarter as a result of settlements of claims at values higher than our expectations. However, the Company believes that as a result of these settlements the remaining level of uncertainty around the ultimate value of its known COVID-19 claims has been significantly reduced.

The unfavorable development mentioned above also includes favorable prior year development for the Insurance segment primarily attributable to the 2020 and 2021 accident years and unfavorable development on the 2015 through 2019 accident years. The favorable development on the 2020 and 2021 accident years was concentrated in certain casualty lines of business including general liability, professional liability, and workers’ compensation. The Company experienced lower reported claim frequency in these lines of business during 2020 and 2021 relative to historical averages, and continued to experience lower reported incurred losses relative to our expectations for these accident years as they developed during 2022. These trends began in 2020 and we believe were caused by the impacts of the COVID-19 pandemic, including for example, lockdowns, reduced driving/traffic and increased work from home. Due to the ongoing uncertainty regarding the ultimate impacts of the pandemic on accident years 2020 and 2021 incurred losses, the Company has been cautious in reacting to these lower trends in setting and updating its loss ratio estimates for these years. As these accident years have continued to mature, the Company has continued to recognize some of the favorable reported experience in its ultimate loss estimates made during 2022.

The unfavorable development on the 2015 through 2019 accident years was concentrated in the general liability and professional liability, including medical professional, lines of business, as well as commercial auto liability. The development was driven by a larger than expected number of large losses reported. The Company believes social inflation is contributing to an increase in the frequency of large losses for these accident years. Social inflation can include higher settlement demands from plaintiffs, use of tactics such as litigation funding by the plaintiffs’ bar, negative public sentiment towards large businesses and corporations, and erosion of tort reforms, among others.

Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed favorably by $4 million in 2022 (net of additional and return premiums). The overall favorable development for the segment was driven mainly by favorable development in excess workers compensation, substantially offset by unfavorable development in the professional liability and non-proportional reinsurance assumed liability lines of business. The favorable excess workers’ compensation development was spread across most prior accident years, including 2012 and prior years, and was driven by a review of the Company’s claim reporting patterns as well as a number of favorable claim settlements relative to expectations. The unfavorable professional liability and non-proportional reinsurance assumed liability development was concentrated mainly in accident years 2016 through 2018 and was associated primarily with our U.S. assumed reinsurance business and related to accounts insuring construction projects and professional liability exposures.

Favorable prior year development (net of additional and return premiums) was $7 million in 2021.

Insurance – Reserves for the Insurance segment developed favorably by $20 million in 2021 (net of additional and return premiums). The overall favorable development in 2021 was attributable to favorable development on the 2020 accident year, partially offset by adverse development on the 2016 through 2019 accident years.

The favorable development on the 2020 accident year was largely concentrated in the commercial auto liability and other liability lines of business, including commercial multi-peril liability. During 2020 the Company achieved larger rate increases in these lines of business than were contemplated in its budget and in its initial loss ratio selections. The Company also experienced significantly lower reported claim frequency in these lines in 2020 relative to historical averages, and lower reported incurred losses relative to its expectations. We believe that the lower claim frequency and lower reported incurred losses were caused by the impacts of the COVID-19 pandemic, for example, lockdowns, reduced driving and traffic, work from home, and court closures. However, due to the uncertainty regarding the ultimate impacts of the pandemic on accident year 2020 incurred losses, the Company elected not to react to these lower reported trends during 2020. As more information became available and the 2020 accident year continued to mature, during 2021 the Company started to recognize favorable accident year 2020 development in response to the continuing favorable reported loss experience relative to its expectations.

The adverse development on the 2016 through 2019 accident years is concentrated largely in the other liability line of business, including commercial multi-peril liability, but is also seen to a lesser extent in commercial auto liability. The adverse development for these accident years is driven by a higher than expected number of large losses reported, and particularly impacted the directors and officers liability, lawyers professional liability, and excess and surplus lines casualty classes of business. We also believe that increased social inflation is contributing to the increased number of large losses, for example, higher jury awards on cases which go to trial, and the corresponding higher demands from plaintiffs and higher values required to reach settlement on cases which do not go to trial.

Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed unfavorably by $13 million in 2021. The unfavorable development in the segment was driven by the non-proportional reinsurance assumed liability and other liability lines of business, related primarily to accident years 2017 through 2019, and was partially offset by favorable development in excess workers’ compensation business which was spread across many prior accident years. The unfavorable non-proportional reinsurance assumed liability and other liability development was associated with our U.S. and U.K. assumed reinsurance business, and related primarily to accounts insuring construction projects and professional liability exposures.

Favorable prior year development (net of additional and return premiums) was $16 million in 2020.

Insurance - Reserves for the Insurance segment developed favorably by $24 million in 2020 (net of additional and return premiums). Continuing the pattern seen in recent years, the overall favorable development in 2020 resulted from more significant favorable development on workers’ compensation business, which was partially offset by unfavorable development on professional liability, including excess professional liability

For workers’ compensation, the favorable development was spread across almost all prior accident years, including prior to 2011, but was most significant in accident years 2016 through 2019. The favorable workers’ compensation development reflects a continuation of the benign loss cost trends experienced during recent years, particularly the favorable claim frequency trends (i.e., number of reported claims per unit of exposure). The long term trend of declining workers’ compensation frequency can be attributable to improved workplace safety. Loss severity trends were also aided by our continued investment in claims handling initiatives such as medical case management services and vendor savings through usage of preferred provider networks and pharmacy benefit managers. Reported workers’ compensation losses in 2020 continued to be below our expectations at most of our businesses, and were below the assumptions underlying our initial loss ratio picks and our previous reserve estimates for most prior accident years.

For professional liability business, unfavorable development was driven mainly by large losses reported in the directors and officers (“D&O”), lawyers professional and excess hospital professional liability lines of business. For these lines of business, we continue to see an increase in the number of large losses reported and a lengthening of the reporting “tail” beyond historical levels. We believe a contributing cause is rising social inflation in the form of, for example, higher jury awards on cases that go to trial, and the corresponding higher demands from plaintiffs and higher values required to reach settlement on cases that do not go to trial. The unfavorable development for professional liability affected mainly accident years 2016 through 2018.

Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed unfavorably by $8 million in 2020. The unfavorable development in the segment was driven by non-proportional assumed liability business written in both the U.S. and U.K., and was partially offset by favorable development on excess workers’ compensation business. The unfavorable non-proportional assumed liability development was concentrated in accident years 2014 through 2018, and related primarily to accounts insuring construction projects and professional liability exposures.

Environmental and Asbestos — To date, known environmental and asbestos claims have not had a material impact on the Company’s operations, because its subsidiaries generally did not insure large industrial companies that are subject to

significant environmental or asbestos exposures prior to 1986 when an absolute exclusion was incorporated into standard policy language.

The Company’s net reserves for losses and loss expenses relating to asbestos and environmental claims on policies written before adoption of the absolute exclusion was $20 million at both December 31, 2022 and 2021. The estimation of these liabilities is subject to significantly greater than normal variation and uncertainty because it is difficult to make an actuarial estimate of these liabilities due to the absence of a generally accepted actuarial methodology for these exposures and the potential effect of significant unresolved legal matters, including coverage issues, as well as the cost of litigating the legal issues. Additionally, the determination of ultimate damages and the final allocation of such damages to financially responsible parties are highly uncertain.

Discounting — The Company discounts its liabilities for certain workers’ compensation reserves. The amount of workers’ compensation reserves that were discounted was $1,267 million and $1,387 million at December 31, 2022 and 2021, respectively. The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $416 million and $452 million at December 31, 2022 and 2021, respectively. At December 31, 2022, discount rates by year ranged from 0.7% to 6.5%, with a weighted average discount rate of 3.4%.

Substantially all discounted workers’ compensation reserves (97% of total discounted reserves at December 31, 2022) are excess workers’ compensation reserves. In order to properly match loss expenses with income earned on investment securities supporting the liabilities, reserves for excess workers’ compensation business are discounted using risk-free discount rates determined by reference to the U.S. Treasury yield curve. These rates are determined annually based on the weighted average rate for the period. Once established, no adjustments are made to the discount rate for that period, and any increases or decreases in loss reserves in subsequent years are discounted at the same rate, without regard to when any such adjustments are recognized. The expected loss and loss expense payout patterns subject to discounting are derived from the Company’s loss payout experience.

The Company also discounts reserves for certain other long-duration workers’ compensation reserves (representing approximately 3% of total discounted reserves at December 31, 2022), including reserves for quota share reinsurance and reserves related to losses regarding occupational lung disease. These reserves are discounted at statutory rates prescribed or permitted by the Department of Insurance of the State of Delaware.

(15) Premiums and Reinsurance Related Information

The Company reinsures a portion of its insurance exposures in order to reduce its net liability on individual risks and catastrophe losses. Reinsurance coverage and retentions vary depending on the line of business, location of the risk and nature of loss. The Company’s reinsurance purchases include the following: property reinsurance treaties that reduce exposure to large individual property losses and catastrophe events; casualty reinsurance treaties that reduce its exposure to large individual casualty losses, workers’ compensation catastrophe losses and casualty losses involving multiple claimants or insureds; and facultative reinsurance that reduces exposure on individual policies or risks for losses that exceed treaty reinsurance capacity. Depending on the business, the Company purchases specific additional reinsurance to supplement the above programs.

The following is a summary of reinsurance financial information:


(In thousands)	2022		2021		2020
Written premiums:
Direct	$	10,695,138	$	9,531,050	$	7,874,050
Assumed	1,213,914		1,169,084		973,597
Ceded	(1,904,982)		(1,837,267)		(1,585,210)
Total net written premiums	$	10,004,070	$	8,862,867	$	7,262,437

Earned premiums:
Direct	$	10,217,891	$	8,825,568	$	7,489,470
Assumed	1,226,801		1,085,804		941,321
Ceded	(1,883,263)		(1,805,341)		(1,499,948)
Total net earned premiums	$	9,561,429	$	8,106,031	$	6,930,843

Ceded losses and loss expenses incurred	$	1,269,338	$	1,236,960	$	955,630
Ceded commission earned	$	477,437	$	449,739	$	358,253

The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the years ended December 31, 2022 and 2021:


(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	25,218	$	22,883

Change in allowance for expected credit losses	5,442		2,335
Allowance for expected credit losses, end of period	$	30,660	$	25,218

Estimated amounts due from reinsurers are reported net of an allowance for expected credit losses of $8.1 million, $7.7 million and $7.8 million as of December 31, 2022, 2021 and 2020, respectively. The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the years ended December 31, 2022 and 2021:


(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	7,713	$	7,801

Change in allowance for expected credit losses	351		(88)
Allowance for expected credit losses, end of period	$	8,064	$	7,713

The following table presents the amounts due from reinsurers as of December 31, 2022:


(In thousands)

Lloyd’s of London	$	347,927
Berkshire Hathaway	332,034
Munich Re	306,530
Partner Re	275,410
Hannover Re Group	191,264
Swiss Re	189,591
Lifson Re	180,724
Renaissance Re	163,973
Everest Re	155,847
Liberty Mutual	96,402
Axis Capital	81,538
Korean Re	59,884
Fairfax Financial	55,228
Axa Insurance	46,058
Arch Capital Group	45,663
Sompo Holdings Group	36,157
Helvetia Holdings Group	30,823
Markel Corp Group	30,216
Validus Holdings Group	24,548
TOA Re	22,945
Other reinsurers less than $20,000	342,275
Subtotal	3,015,037
Residual market pools (1)	180,757
Allowance for expected credit losses	(8,064)
Total	$	3,187,730

(1)Many states require licensed insurers that provide workers' compensation insurance to participate in programs that provide workers' compensation to employers that cannot procure coverage from an insurer on a voluntary basis. Insurers can fulfill this residual market obligation by participating in pools where results are shared by the participating companies. The Company acts as a servicing carrier for workers' compensation pools in certain states. As a servicing carrier, the Company writes residual market business directly and then cedes 100% of this business to the respective pool. As a servicing carrier, the Company receives fee income for its services. The Company does not retain underwriting risk, and credit risk is limited as ceded balances are jointly shared by all the pool members.

(16) Indebtedness

Indebtedness consisted of the following as of December 31, 2022 (the difference between the face value and the carrying value is unamortized discount and debt issuance costs):


				Carrying Value
(In thousands)	Interest Rate	Face Value		2022		2021
Senior notes and other debt due on:

January 1, 2022 (1)	8.700%	$	—	$	—	$	76,503
March 15, 2022 (1)	4.625%	—		—		349,923
February 15, 2037	6.250%	250,000		248,446		248,336
August 1, 2044	4.750%	350,000		346,020		345,836
May 12, 2050	4.000%	470,000		490,721		491,478
March 30, 2052	3.550%	400,000		394,213		394,015
September 30, 2061	3.150%	350,000		342,945		342,761

Subsidiary debt and other (2)	Various	6,478		6,478		10,564
Total senior notes and other debt		$	1,826,478	$	1,828,823	$	2,259,416
Subordinated debentures due on:



March 30, 2058	5.700%	$	185,000	$	179,328	$	179,166
December 30, 2059	5.100%	300,000		291,179		290,941
September 30, 2060	4.250%	250,000		244,523		244,378
March 30, 2061	4.125%	300,000		293,341		293,167
Total subordinated debentures		$	1,035,000	$	1,008,371	$	1,007,652

(1) In the first quarter of 2022, the Company repaid at maturity its $77 million aggregate principal amount of 8.7% senior notes in January and its $350 million aggregate principal amount of 4.625% senior notes in March.

(2) Subsidiary debt is due as follows: $5 million in 2024 and $2 million in 2025, partially offset by the unamortized cost of $0.8 million due to entering into the $300 million senior unsecured revolving credit facility.

On April 1, 2022, the Company entered into a senior unsecured revolving credit facility that provides for revolving, unsecured borrowings up to an aggregate of $300 million with a $50 million sublimit for letters of credit. The Company may increase the amount available under the facility to a maximum of $500 million subject to obtaining lender commitments for the increase and other customary conditions. Borrowings under the facility may be used for working capital and other general corporate purposes. All borrowings under the facility must be repaid by April 1, 2027, except that letters of credit outstanding on that date may remain outstanding until April 1, 2028 (or such later date approved by all lenders). Our ability to utilize the facility is conditioned on the satisfaction of representations, warranties and covenants that are customary for facilities of this type. As of December 31, 2022, there were no borrowings outstanding under the facility.

(17) Income Taxes

Income tax expense (benefit) consists of:


(In thousands)	Current Expense		Deferred (Benefit) Expense		Total
December 31, 2022
Domestic	$	295,849	$	(27,544)	$	268,305
Foreign	42,890		23,532		66,422
Total expense (benefit)	$	338,739	$	(4,012)	$	334,727

December 31, 2021
Domestic	$	239,090	$	2,752	$	241,842
Foreign	—		10,048		10,048
Total expense	$	239,090	$	12,800	$	251,890

December 31, 2020
Domestic	$	162,305	$	17	$	162,322
Foreign	23,375		(13,880)		9,495
Total expense (benefit)	$	185,680	$	(13,863)	$	171,817

Income before income taxes from domestic operations was $1,240 million, $1,224 million and $831 million for the years ended December 31, 2022, 2021 and 2020, respectively. Income (loss) before income taxes from foreign operations was $480 million, $59 million and ($126) million for the years ended December 31, 2022, 2021 and 2020, respectively.

A reconciliation of the income tax expense and the amounts computed by applying the Federal and foreign income tax rate of 21% for 2022, 2021 and 2020 to pre-tax income are as follows:


(In thousands)	2022		2021		2020
Computed “expected” tax expense	$	361,133	$	269,410	$	148,008
Tax-exempt investment income	(10,815)		(11,380)		(12,770)
Change in valuation allowance	(28,064)		2,974		46,238
Impact of foreign tax rates	(453)		(2,368)		6,753
State and local taxes	8,976		4,230		2,561

Other, net	3,950		(10,976)		(18,973)
Total expense	$	334,727	$	251,890	$	171,817

At December 31, 2022 and 2021, the tax effects of differences that give rise to significant portions of the deferred tax asset and deferred tax liability are as follows:


(In thousands)	2022		2021
Deferred tax asset:
Loss reserve discounting	$	192,181	$	162,636
Unearned premiums	180,326		163,143
Unrealized investment losses	228,456		—
Net operating losses & foreign tax credits	58,182		88,502
Other-than-temporary impairments	5,935		5,176
Employee compensation plans	63,313		61,301
Other	72,536		54,269
Gross deferred tax asset	800,929		535,027
Less valuation allowance	(47,166)		(75,230)
Deferred tax asset	753,763		459,797
Deferred tax liability:
Amortization of intangibles	13,973		12,787
Loss reserve discounting - transition rule	14,843		19,796
Deferred policy acquisition costs	157,055		137,893
Unrealized investment gains	—		36,850
Property, furniture and equipment	45,887		43,186
Investment funds	125,525		101,999
Other	67,479		67,331
Deferred tax liability	424,762		419,842
Net deferred tax asset	$	329,001	$	39,955

The Company had a current tax net receivable of $5 million and $3 million at December 31, 2022 and 2021, respectively. At December 31, 2022, the Company had foreign net operating loss carryforwards of $4 million that begin to expire in 2027 and an additional $225 million that have no expiration date. At December 31, 2022, the Company had a valuation allowance of $47 million as compared to $75 million at December 31, 2021. The Company has provided a valuation allowance against the utilization of foreign tax credits and the future net operating loss carryforward benefits of certain foreign operations. The statute of limitations for the Company’s U.S. Federal income tax returns has closed for all years through December 31, 2018.

The realization of the deferred tax asset is dependent upon the Company’s ability to generate sufficient taxable income in future periods. Based on historical results and the prospects for future current operations, management anticipates that it is more likely than not that future taxable income will be sufficient for the realization of this asset.

The Tax Cuts and Jobs Act of 2017 (the "Tax Act") provided for a reduction of the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. The U.S. tax law requires insurance reserves to be discounted for tax purposes. The Tax Act modified this computation. The IRS issued revised discount factors to be applied to the 2017 reserves, which increased the beginning of year 2018 deferred tax asset for loss reserve discounting. Under the related transition rule, a deferred tax liability was established which will be included in taxable income over the eight year period that began in 2018.

The Company has not provided U.S. deferred income taxes on the undistributed earnings of approximately $169 million of its non-U.S. subsidiaries since these earnings are intended to be permanently reinvested in the non-U.S. subsidiaries. In the future, if such earnings were distributed the Company projects that the incremental tax, if any, will be immaterial.

(18) Dividends from Subsidiaries and Statutory Financial Information

The Company’s insurance subsidiaries are restricted by law as to the amount of dividends they may pay without the approval of regulatory authorities. The Company’s lead insurer, Berkley Insurance Company ("BIC"), directly or indirectly owns all of the Company’s other insurance companies. During 2023, the maximum amount of dividends that can be paid by BIC without such approval is approximately $1.2 billion.

BIC’s combined net income and statutory capital and surplus, as determined in accordance with statutory accounting practices ("SAP"), are as follows:


(In thousands)	2022		2021		2020
Net income	$	1,358,813	$	1,040,342	$	771,990
Statutory capital and surplus	$	8,330,587	$	6,817,535	$	6,188,121

The significant variances between SAP and GAAP are that for statutory purposes bonds are carried at amortized cost, unrealized gains and losses on equity securities are recorded in surplus, acquisition costs are charged to income as incurred, deferred Federal income taxes are subject to limitations, excess and assumed workers’ compensation reserves are discounted at different discount rates and certain assets designated as “non-admitted assets” are charged against surplus. The Commissioner of Insurance of the State of Delaware has allowed BIC to recognize a non-tabular discount on certain workers' compensation loss reserves, which is a permitted practice that differs from SAP. The effect of using this permitted practice was an increase to BIC’s statutory capital and surplus by $171 million at December 31, 2022*.*

The National Association of Insurance Commissioners (“NAIC”) has risk-based capital (“RBC”) requirements that require insurance companies to calculate and report information under a risk-based formula which measures statutory capital and surplus needs based on a regulatory definition of risk in a company’s mix of products and its balance sheet. This guidance is used to calculate two capital measurements: Total Adjusted Capital and RBC Authorized Control Level. Total Adjusted Capital is equal to the Company’s statutory capital and surplus excluding capital and surplus derived from the use of permitted practices that differ from statutory accounting practices. RBC Authorized Control Level is the capital level used by regulatory authorities to determine whether remedial action is required. Generally, no remedial action is required if Total Adjusted Capital is 200% or more of the RBC Authorized Control Level. At December 31, 2022, BIC’s Total Adjusted Capital of $8.2 billion was 408% of its RBC Authorized Control Level.

See Note 4, Investments in Fixed Maturity Securities, for a description of assets held on deposit as security.

(19) Common Stockholders’ Equity

The weighted average number of shares used in the computation of net income per share was as follows:


(In thousands)	2022	2021	2020
Basic	276,852	277,430	280,386
Diluted	279,461	279,749	283,145

Treasury shares have been excluded from average outstanding shares from the date of acquisition. The weighted average number of basic shares outstanding includes the impact of 11,416,856 common shares held in a grantor trust. The common shares held in the grantor trust are for delivery upon settlement of vested but mandatorily deferred restricted stock units ("RSUs"). Shares held by the grantor trust do not affect diluted shares outstanding since shares deliverable under vested RSUs were already included in diluted shares outstanding. The difference in calculating basic and diluted net income per share is attributable entirely to the dilutive effect of stock-based compensation plans. Changes in shares of common stock outstanding, net of treasury shares, are presented below. Shares of common stock issued and outstanding do not include shares related to unissued restricted stock units (including shares held in the grantor trust).


	2022	2021	2020
Balance, beginning of year	265,170,882	266,737,725	275,117,861
Shares issued	745,612	1,062,086	1,164,816
Shares repurchased	(1,370,394)	(2,628,929)	(9,544,952)
Balance, end of year	264,546,100	265,170,882	266,737,725

The amount of dividends paid is dependent upon factors such as the receipt of dividends from our subsidiaries, our results of operations, cash flow, financial condition and business needs, the capital and surplus requirements of our subsidiaries, and applicable insurance regulations that limit the amount of dividends that may be paid by our regulated insurance subsidiaries.

(20) Fair Value of Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2022 and 2021:


	2022				2021
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	17,587,349	$	17,591,626	$	16,602,673	$	16,614,118
Equity securities	1,185,894		1,185,894		941,243		941,243
Arbitrage trading account	944,230		944,230		1,179,606		1,179,606
Loans receivable	193,002		187,981		115,172		116,534
Cash and cash equivalents	1,449,346		1,449,346		1,568,843		1,568,843
Trading accounts receivable from brokers and clearing organizations	233,863		233,863		—		—
Due from broker	3,609		3,609		20,448		20,448

Liabilities:
Due to broker	—		—		53,636		53,636
Trading account securities sold but not yet purchased	—		—		1,169		1,169
Senior notes and other debt	1,828,823		1,439,188		2,259,416		2,526,630
Subordinated debentures	1,008,371		805,600		1,007,652		1,095,600

The estimated fair values of the Company’s fixed maturity securities, equity securities available for sale and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 13 above. The fair value of loans receivable is estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input.

(21) Commitments, Litigation and Contingent Liabilities

In the ordinary course of business, the Company is subject to disputes, litigation and arbitration arising from its insurance and reinsurance businesses. These matters are generally related to insurance and reinsurance claims and are considered in the establishment of loss and loss expense reserves. In addition, the Company may also become involved in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in handling of insurance claims. The Company expects its ultimate liability with respect to such matters will not be material to its financial condition. However, adverse outcomes on such matters are possible, from time to time, and could be material to the Company’s results of operations in any particular financial reporting period.

At December 31, 2022, the Company had commitments to invest up to $402 million and $146 million in certain investment funds and real estate construction projects, respectively.

(22) Leases

Lessees are required to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months on the balance sheet. All leases disclosed within this note are classified as operating leases. Recognized right-of-use asset and lease liability are reported within other assets and other liabilities, respectively, in the consolidated balance sheet. Lease expense is reported in other operating costs and expenses in the consolidated statement of income and accounted for on a straight-line basis over the lease term.

To determine the discount rate used to calculate present value of future minimum lease payments, the Company uses its incremental borrowing rate during the lease commencement period in line with the respective lease duration. In certain cases, the Company has the option to renew the lease. Lease renewal future payments are included in the present value of the future minimum lease payments when the Company determines it is reasonably certain to renew.

The main leases entered into by the Company are for office space used by the Company’s operating units across the world. Additionally, the Company, to a lesser extent, has equipment leases mainly for office equipment. Further information relating to operating lease expense and other operating lease information is as follows:


		For the Year Ended December 31,

(In thousands)	2022	2021
Leases:
Lease cost		$	43,383	$	44,051
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows		$	43,871	$	45,592
Right-of-use assets obtained in exchange for new lease liabilities		$	28,075	$	38,929


	As of December 31,
($ in thousands)	2022			2021
Right-of-use assets	$	169,271		$	172,180
Lease liabilities	$	204,088		$	208,729
Weighted-average remaining lease term	7.1 years			7.2 years
Weighted-average discount rate	4.40		%	4.83		%

Contractual maturities of the Company’s future minimum lease payments are as follows:


(In thousands)	December 31, 2022
Contractual Maturities:
2023	$	47,024
2024	41,788
2025	32,928
2026	25,973
2027	16,472
Thereafter	68,912
Total undiscounted future minimum lease payments	233,097
Less: Discount impact	29,009
Total lease liability	$	204,088

(23) Stock Incentive Plan

Pursuant to the Company's stock incentive plan, the Company may issue restricted stock units ("RSUs") to employees of the Company and its subsidiaries. The RSUs generally vest three to five years from the award date and are subject to other vesting and forfeiture provisions contained in the award agreement. The following table summarizes RSU information for the three years ended December 31, 2022:


	2022	2021	2020
RSUs granted and unvested at beginning of period:	5,144,519	5,706,504	6,186,390
Granted	1,024,960	1,272,990	1,443,680
Vested	(1,258,680)	(1,523,960)	(1,667,382)
Canceled	(292,373)	(311,016)	(256,184)
RSUs granted and unvested at end of period:	4,618,426	5,144,519	5,706,504

Upon vesting, shares of the Company’s common stock equal to the number of vested RSUs are issued or deferred to a later date, depending on the terms of the specific award agreement. As of December 31, 2022, 11,403,456 RSUs had been deferred. RSUs that have not yet vested and vested RSUs that have been deferred are not considered to be issued and outstanding shares.

The fair value of RSUs at the date of grant are recorded as unearned compensation, a component of stockholders’ equity, and expensed over the vesting period. Following is a summary of changes in unearned compensation for the three years ended December 31, 2022:


(In thousands)	2022		2021		2020
Unearned compensation at beginning of year	$	135,535	$	132,310	$	128,390
RSUs granted, net of cancellations	60,628		56,711		54,270
RSUs expensed	(47,611)		(46,441)		(47,108)
RSUs forfeitures	(6,492)		(7,045)		(3,242)
Unearned compensation at end of year	$	142,060	$	135,535	$	132,310

(24) Compensation Plans

The Company and its subsidiaries have profit sharing plans in which substantially all employees participate. The plans provide for minimum annual contributions of 5% of eligible compensation; contributions above the minimum are discretionary and vary with each participating businesses's profitability. Employees become eligible to participate in the plan on the first day of the calendar quarter following the first full calendar quarter after the employee's date of hire provided the employee has completed 250 hours of service during the calendar quarter. The plans provide that 40% of the contributions vest immediately and that the remaining 60% vest at varying percentages based upon years of service. Profit sharing expense was $62 million, $50 million and $48 million in 2022, 2021 and 2020, respectively.

The Company has a long-term incentive compensation plan ("LTIP") that provides for compensation to key executives based on the growth in the Company's book value per share over a five year period.

The following table summarizes the outstanding LTIP awards as of December 31, 2022:


	Units Outstanding	Maximum Value		Inception to date earned through December 31, 2022 on outstanding units
2018 grant	188,500	$	18,850,000	$	18,850,000
2019 grant	205,000	20,500,000		17,164,589
2020 grant	216,000	21,600,000		13,943,707
2021 grant	221,750	22,175,000		11,426,223
2022 grant	241,000	24,100,000		6,232,260

The following table summarizes the LTIP expense for each of the three years ended December 31, 2022:


(In thousands)	2022		2021		2020



2015 grant	$	—	$	—	$	(168)
2016 grant	—		(117)		3,176
2017 grant	—		6,012		2,914
2018 grant	4,299		5,503		2,776
2019 grant	6,904		5,309		2,490
2020 grant	6,653		5,065		2,276
2021 grant	6,574		4,906		—
2022 grant	6,232		—		—
Total	$	30,662	$	26,678	$	13,464

(25) Supplemental Financial Statement Data

Other operating costs and expenses consist of the following:


(In thousands)	2022		2021		2020
Amortization of deferred policy acquisition costs	$	1,038,903	$	961,628	$	904,955
Insurance operating expenses	1,635,000		1,345,099		1,206,058
Insurance service expenses	96,419		86,003		85,724
Net foreign currency (gains) losses	(50,930)		(25,725)		363
Debt extinguishment costs	—		11,521		8,440
Other costs and expenses	242,113		220,744		184,852
Total	$	2,961,505	$	2,599,270	$	2,390,392

(26) Industry Segments

The Company’s reportable segments include the following two business segments, plus a corporate segment:

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 Asia, Australia, Canada, Continental Europe, Mexico, Scandinavia, South America and the United Kingdom.
Reinsurance & Monoline Excess - reinsurance business on a facultative and treaty basis, primarily in the United States, United Kingdom, Continental Europe, Australia, the Asia-Pacific region and South Africa, as well as operations that solely retain risk on an excess basis.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company’s overall effective tax rate.

Summary financial information about the Company’s reporting segments is presented in the following table. Income before income taxes by segment includes allocated investment income. Identifiable assets by segment are those assets used in or allocated to the operation of each segment.


	Revenues
(In thousands)	Earned Premiums (1)		Investment Income		Other		Total (2)		Pre-Tax Income (Loss)		Net Income (Loss) to Common Stockholders
Year ended December 31, 2022
Insurance	$	8,369,062	$	550,084	$	33,347	$	8,952,493	$	1,455,658	$	1,173,425
Reinsurance & Monoline Excess	1,192,367		194,272		—		1,386,639		316,527		251,386
Corporate, other and eliminations (3)	—		34,829		590,141		624,970		(254,901)		(203,476)
Net investment gains	—		—		202,397		202,397		202,397		159,727
Consolidated	$	9,561,429	$	779,185	$	825,885	$	11,166,499	$	1,719,681	$	1,381,062

Year ended December 31, 2021
Insurance	$	7,077,708	$	468,821	$	32,063	$	7,578,592	$	1,219,798	$	976,184
Reinsurance & Monoline Excess	1,028,323		175,324		—		1,203,647		270,563		215,439
Corporate, other and eliminations (3)	—		27,473		555,122		582,595		(298,088)		(242,055)
Net investment gains	—		—		90,632		90,632		90,632		72,922
Consolidated	$	8,106,031	$	671,618	$	677,817	$	9,455,466	$	1,282,905	$	1,022,490

Year ended December 31, 2020
Insurance	$	6,067,669	$	375,554	$	35,611	$	6,478,834	$	668,012	$	487,125
Reinsurance & Monoline Excess	863,174		146,029		—		1,009,203		205,587		164,655
Corporate, other and eliminations (3)	—		62,238		445,650		507,888		(271,797)		(214,291)
Net investment gains	—		—		103,000		103,000		103,000		93,181
Consolidated	$	6,930,843	$	583,821	$	584,261	$	8,098,925	$	704,802	$	530,670


Identifiable Assets
(In thousands)	December 31,
	2022		2021
Insurance	$	27,009,652	$	24,414,305
Reinsurance & Monoline Excess	5,195,752		4,916,894
Corporate, other and eliminations (3)	1,655,695		2,755,215
Consolidated	$	33,861,099	$	32,086,414

(1) Certain amounts included in earned premiums of each segment are related to inter-segment transactions.

(2) Revenues for Insurance includes $1,029 million, $873 million, and $692 million in 2022, 2021, and 2020, respectively, from foreign countries. Revenues for Reinsurance & Monoline Excess includes $412 million, $380 million, and $292 million in 2022, 2021 and 2020, respectively, from foreign countries.

(3) Corporate, other and eliminations represent corporate revenues and expenses and other items that are not allocated to

business segments.

Net premiums earned by major line of business were as follows:


(In thousands)	2022		2021		2020
Insurance
Other liability	$	3,206,846	$	2,673,098	$	2,269,458
Short-tail lines	1,630,371		1,389,068		1,247,908
Workers' compensation	1,197,811		1,131,283		1,127,487
Commercial automobile	1,208,241		990,945		794,171
Professional liability	1,125,793		893,314		628,645
Total Insurance	8,369,062		7,077,708		6,067,669
Reinsurance & Monoline Excess
Casualty	764,793		643,193		521,559
Monoline Excess	217,017		201,187		171,522
Property	210,557		183,943		170,093
Total Reinsurance & Monoline Excess	1,192,367		1,028,323		863,174
Total	$	9,561,429	$	8,106,031	$	6,930,843

(27) Subsequent Event

On January 3, 2023, the Company's Board of Directors declared a special cash dividend on its common stock of 50 cents per share that was paid on January 24, 2023 to stockholders of record at the close of business on January 13, 2023.

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