Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

244K characters. Original on sec.gov · Markdown

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, 2023 and 2022, 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, 2023, 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, 2023 and 2022, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2023, 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, 2023, 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 23, 2024 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 13 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, 2023 were $18.7 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. With the assistance of actuarial professionals, when appropriate, 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 23, 2024

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME


	Year Ended December 31,
(In thousands, except per share data)	2023		2022		2021
REVENUES:
Net premiums written	$	10,954,467	$	10,004,070	$	8,862,867
Change in net unearned premiums	(553,780)		(442,641)		(756,836)
Net premiums earned	10,400,687		9,561,429		8,106,031
Net investment income	1,052,835		779,185		671,618
Net investment gains:
Net realized and unrealized gains on investments	47,540		217,311		106,958
Change in allowance for expected credit losses on investments	(498)		(14,914)		(16,326)
Net investment gains	47,042		202,397		90,632
Revenues from non-insurance businesses	535,508		509,548		489,151
Insurance service fees	106,485		110,544		93,857
Other income	381		3,396		4,177
Total revenues	12,142,938		11,166,499		9,455,466
OPERATING COSTS AND EXPENSES:
Losses and loss expenses	6,372,142		5,861,750		4,953,960
Other operating costs and expenses	3,363,936		2,961,505		2,599,270
Expenses from non-insurance businesses	524,998		493,189		472,151
Interest expense	127,459		130,374		147,180
Total operating costs and expenses	10,388,535		9,446,818		8,172,561
Income before income taxes	1,754,403		1,719,681		1,282,905
Income tax expense	(370,557)		(334,727)		(251,890)
Net income before noncontrolling interests	1,383,846		$	1,384,954	1,031,015
Noncontrolling interests	(2,487)		(3,892)		(8,525)
Net income to common stockholders	$	1,381,359	$	1,381,062	$	1,022,490
NET INCOME PER SHARE:
Basic	$	5.10	$	4.99	$	3.69
Diluted	$	5.05	$	4.94	$	3.66

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Year Ended December 31,
(In thousands)	2023		2022		2021
Net income before noncontrolling interests	$	1,383,846	$	1,384,954	$	1,031,015
Other comprehensive gain (loss):
Change in unrealized translation adjustments	32,192		1,179		(20,969)
Change in unrealized investment gains (losses), net of taxes	306,553		(983,803)		(198,812)

Other comprehensive gain (loss)	338,745		(982,624)		(219,781)
Comprehensive income	1,722,591		402,330		811,234
Noncontrolling interests	(2,485)		(3,890)		(8,523)
Comprehensive income to common stockholders	$	1,720,106	$	398,440	$	802,711

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	December 31,
(In thousands, except share data)	2023		2022
Assets
Investments:
Fixed maturity securities (amortized cost of $20,915,245 and $18,715,483; allowance for expected credit losses of $36,751 and $37,466 at December 31, 2023 and 2022)	$	20,178,308	$	17,587,349
Investment funds	1,621,655		1,608,548
Real estate	1,249,874		1,340,622
Arbitrage trading account	938,049		944,230
Equity securities	1,090,347		1,185,894
Loans receivable (net of allowance for expected credit losses of $3,004 and $1,791 at December 31, 2023 and 2022)	201,271		193,002

Total investments	25,279,504		22,859,645
Cash and cash equivalents	1,363,195		1,449,346
Premiums and fees receivable (net of allowance for expected credit losses of $35,110 and $30,660 at December 31, 2023 and 2022)	3,109,334		2,779,244
Due from reinsurers (net of allowance for expected credit losses of $8,404 and $8,064 at December 31, 2023 and 2022)	3,534,527		3,187,730
Deferred policy acquisition costs	861,609		763,486
Prepaid reinsurance premiums	758,927		696,468
Trading account receivable from brokers and clearing organizations	303,614		233,863
Property, furniture and equipment	426,803		423,232
Goodwill	174,597		185,509
Accrued investment income	213,408		166,784
Current federal and foreign income taxes	1,318		39,123
Deferred federal and foreign income taxes	309,623		340,647
Other assets	865,556		736,022
Total assets	$	37,202,015	$	33,861,099
Liabilities and Equity
Liabilities:
Reserves for losses and loss expenses	$	18,739,652	$	17,011,223
Unearned premiums	5,922,326		5,297,654
Due to reinsurers	631,164		523,131
Trading account securities sold but not yet purchased	9,357		—

Current federal and foreign income taxes	47,525		34,350
Deferred federal and foreign income taxes	42,660		11,646
Senior notes and other debt	1,827,951		1,828,823
Subordinated debentures	1,009,090		1,008,371
Other liabilities	1,503,053		1,377,740
Total liabilities	29,732,778		27,092,938
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; issued and outstanding, net of treasury shares, 256,544,757 and 264,546,100 shares, respectively	105,803		105,803
Additional paid-in capital	1,017,691		997,534
Retained earnings	11,040,908		10,161,005
Accumulated other comprehensive loss	(925,838)		(1,264,581)
Treasury stock, at cost, 272,469,871 and 264,468,528 shares, respectively	(3,783,133)		(3,251,429)
Total common stockholders’ equity	7,455,431		6,748,332
Noncontrolling interests	13,806		19,829
Total equity	7,469,237		6,768,161
Total liabilities and equity	$	37,202,015	$	33,861,099

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)		2023		2022		2021
COMMON STOCK:
Beginning and end of period		$	105,803	$	105,803	$	105,803
ADDITIONAL PAID IN CAPITAL:
Beginning of period		$	997,534	$	981,104	$	977,215
Restricted stock units issued		(29,043)		(32,622)		(44,041)
Restricted stock units expensed		49,200		49,052		47,930


End of period		$	1,017,691	$	997,534	$	981,104
RETAINED EARNINGS:
Beginning of period		$	10,161,005	$	9,015,135	$	8,348,381

Net income to common stockholders		1,381,359		1,381,062		1,022,490
Dividends ($1.93, $0.89, and $1.34 per share, respectively)		(501,456)		(235,192)		(355,736)
End of period		$	11,040,908	$	10,161,005	$	9,015,135
ACCUMULATED OTHER COMPREHENSIVE LOSS:
Unrealized investment (losses) gains:
Beginning of period		$	(892,905)	$	90,900	$	289,714

Change in unrealized gains (losses) on securities without an allowance for expected credit losses		305,908		(955,435)		(208,938)
Change in unrealized gains (losses) on securities with an allowance for expected credit losses		643		(28,370)		10,124
End of period		(586,354)		(892,905)		90,900
Currency translation adjustments:
Beginning of period		(371,676)		(372,855)		(351,886)
Net change in period		32,192		1,179		(20,969)
End of period		(339,484)		(371,676)		(372,855)




Total accumulated other comprehensive loss		$	(925,838)	$	(1,264,581)	$	(281,955)
TREASURY STOCK:
Beginning of period		$	(3,251,429)	$	(3,167,076)	$	(3,058,425)
Stock exercised/vested		10,381		9,787		13,775

Stock repurchased		(537,163)		(94,140)		(122,426)
Other		(4,922)		—		—
End of period		$	(3,783,133)	$	(3,251,429)	$	(3,167,076)
NONCONTROLLING INTERESTS:
Beginning of period		$	19,829	$	14,719	$	14,995
(Distributions) contributions		(8,508)		1,220		(8,799)
Net income		2,487		3,892		8,525
Other comprehensive loss, net of tax		(2)		(2)		(2)
End of period		$	13,806	$	19,829	$	14,719

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
(In thousands)	2023		2022		2021
CASH FROM OPERATING ACTIVITIES:
Net income to common stockholders	$	1,381,359	$	1,381,062	$	1,022,490
Adjustments to reconcile net income to net cash from operating activities:
Net investment gains	(47,042)		(202,397)		(90,632)
Depreciation and (accretion) amortization	(20,861)		55,872		129,682
Noncontrolling interests	2,487		3,892		8,525
Investment funds	(16,743)		(145,099)		(220,015)
Stock incentive plans	51,000		49,411		46,680
Change in:
Arbitrage trading account	(54,213)		(53,291)		(268,649)
Premiums and fees receivable	(334,178)		(268,171)		(364,395)
Reinsurance accounts	(306,017)		(266,307)		(433,644)
Deferred policy acquisition costs	(99,387)		(88,844)		(121,663)
Current income taxes	52,451		(3,534)		(43,890)
Deferred income taxes	(26,691)		(64,712)		7,630
Reserves for losses and loss expenses	1,715,076		1,684,254		1,635,774
Unearned premiums	617,535		466,590		786,627
Other	14,462		19,878		89,467
Net cash from operating activities	2,929,238		2,568,604		2,183,987
CASH FLOWS USED IN INVESTING ACTIVITIES:
Proceeds from sale of fixed maturity securities	1,011,195		797,948		1,842,139
Proceeds from sale of equity securities	318,852		82,319		126,980
(Contributions to) distributions from investment funds	(19,904)		24,623		101,050
Proceeds from maturities and prepayments of fixed maturity securities	3,506,903		4,891,179		6,067,230
Purchase of fixed maturity securities	(6,664,763)		(8,036,680)		(10,716,748)
Purchase of equity securities	(80,454)		(340,482)		(464,645)
Real estate (purchased) sold	(2,074)		(45,920)		166,886

Change in loans receivable	(29,719)		(83,212)		(27,421)
Net additions to property, furniture and equipment	(53,080)		(52,684)		(66,634)
Change in balances due from security brokers	(33,929)		14,337		(17,983)
Cash received in connection with business disposition	96,567		906,789		—
Payment for business purchased, net of cash acquired	(11,558)		(49,572)		—
Net cash used in investing activities	(1,961,964)		(1,891,355)		(2,989,146)
CASH FLOWS (USED IN) FROM FINANCING ACTIVITIES:
Net (payments) proceeds from issuance of debt	(974)		(3,309)		1,034,107

Repayment of senior notes and other debt	—		(426,503)		(504,952)
Cash dividends to common stockholders	(501,456)		(235,192)		(355,736)
Purchase of common treasury shares	(537,163)		(94,140)		(122,426)
Other, net	(22,902)		(12,848)		(45,162)
Net cash (used in) from financing activities	(1,062,495)		(771,992)		5,831
Net impact on cash due to change in foreign exchange rates	9,070		(24,754)		(4,195)
Net decrease in cash and cash equivalents	(86,151)		(119,497)		(803,523)
Cash and cash equivalents at beginning of year	1,449,346		1,568,843		2,372,366
Cash and cash equivalents at end of year	$	1,363,195	$	1,449,346	$	1,568,843

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2023, 2022 and 2021

(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 2022 and 2021 financial statements as originally reported to conform to the presentation of the 2023 financial statements. For the year ended December 31, 2021, the Company did not correct 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 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 net premiums written and premiums earned by $19 million, $25 million and $10 million in 2023, 2022 and 2021, 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.

(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 and real estate 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 12 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 11,663,450 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 units. 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 13 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 $31 million and $33 million at December 31, 2023 and 2022, 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 uncertain 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 $51 million, $52 million and $52 million for 2023, 2022 and 2021, 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, 2023 indicated that there were no material impairment losses related to goodwill and other intangible assets. Intangible assets of $119 million and $102 million are included in other assets as of December 31, 2023 and 2022, 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 $114 million, $138 million and $141 million in 2023, 2022 and 2021, respectively. Income taxes paid were $332 million, $295 million and $244 million in 2023, 2022 and 2021, respectively. Other non-cash items include unrealized investment gains and losses. (See Note 10 of Notes to Consolidated Financial Statements.)

(Q) Recent accounting pronouncements

Recently adopted accounting pronouncements:

All accounting and reporting standards that became effective in 2023 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) Consolidated Statements of Comprehensive Income (Loss)

The following tables present the components of the changes in accumulated other comprehensive income (loss) (AOCI) as of and for the years ended December 31, 2023 and 2022:


(In thousands)
December 31, 2023	Unrealized Investment Gains (Losses)			Currency Translation Adjustments		Accumulated Other Comprehensive Income (Loss)
Changes in AOCI
Beginning of period	$	(892,905)		$	(371,676)	$	(1,264,581)


Other comprehensive income before reclassifications	252,782			32,192		284,974
Amounts reclassified from AOCI	53,771			—		53,771
Other comprehensive income	306,553			32,192		338,745
Unrealized investment loss related to noncontrolling interest	(2)			—		(2)
Ending balance	$	(586,354)		$	(339,484)	$	(925,838)
Amounts reclassified from AOCI
Pre-tax	$	68,065	(1)	$	—	$	68,065
Tax effect	(14,294)		(2)	—		(14,294)
After-tax amounts reclassified	$	53,771		$	—	$	53,771
Other comprehensive income
Pre-tax	$	392,903		$	32,192	$	425,095
Tax effect	(86,350)			—		(86,350)
Other comprehensive income	$	306,553		$	32,192	$	338,745


(In thousands)
December 31, 2022	Unrealized Investment (Losses) Gains			Currency Translation Adjustments		Accumulated Other Comprehensive Income (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 non-controlling 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)

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

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

(3) Investments in Fixed Maturity Securities

At December 31, 2023 and 2022, 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, 2023
Held to maturity:
State and municipal	$	50,547		$	(43)	$	3,132	$	—	$	53,636	$	50,504
Residential mortgage-backed	2,868			—		107		—		2,975		2,868

Total held to maturity	53,415			(43)		3,239		—		56,611		53,372
Available for sale:
U.S. government and government agency	1,762,997			—		11,403		(57,669)		1,716,731		1,716,731
State and municipal:
Special revenue	1,682,550			—		5,651		(82,006)		1,606,195		1,606,195
State general obligation	394,429			—		3,550		(16,405)		381,574		381,574
Pre-refunded	103,029			—		1,634		(185)		104,478		104,478
Corporate backed	166,873			(757)		696		(11,973)		154,839		154,839
Local general obligation	396,041			—		3,188		(11,893)		387,336		387,336
Total state and municipal	2,742,922			(757)		14,719		(122,462)		2,634,422		2,634,422
Mortgage-backed securities:
Residential	1,773,206			—		12,780		(163,844)		1,622,142		1,622,142
Commercial	657,157			(158)		626		(13,312)		644,313		644,313
Total mortgage-backed securities	2,430,363			(158)		13,406		(177,156)		2,266,455		2,266,455
Asset-backed securities	4,252,883			(1,164)		8,527		(73,206)		4,187,040		4,187,040
Corporate:
Industrial	3,679,219			(40)		24,312		(143,936)		3,559,555		3,559,555
Financial	2,838,220			(4,986)		14,681		(68,681)		2,779,234		2,779,234
Utilities	701,865			—		6,471		(23,412)		684,924		684,924
Other	635,975			—		1,605		(7,234)		630,346		630,346
Total corporate	7,855,279			(5,026)		47,069		(243,263)		7,654,059		7,654,059
Foreign government	1,817,386			(29,603)		15,865		(137,419)		1,666,229		1,666,229
Total available for sale	20,861,830			(36,708)		110,989		(811,175)		20,124,936		20,124,936
Total investments in fixed maturity securities	$	20,915,245		$	(36,751)	$	114,228	$	(811,175)	$	20,181,547	$	20,178,308


(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

——————————

(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, 2023 and 2022:


	State and Municipal
(In thousands)	2023			2022
Allowance for expected credit losses, beginning of period	$	114		$	387

Change in allowance for expected credit losses	(71)		(273)	(273)
Allowance for expected credit losses, end of period	$	43		$	114

The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the years ended December 31, 2023 and 2022:


	2023												2022
(In thousands)	Foreign Government		Corporate		Mortgage- Backed		Asset-backed		State and Municipal		Total		Foreign Government		Corporate		Mortgage- Backed		Total
Allowance for expected credit losses, beginning of period	$	32,633	$	4,701	$	18	$	—	$	—	$	37,352	$	22,222	$	16	$	—	$	22,238

Expected credit losses on securities for which credit losses were not previously recorded	—		982		1,766		1,444		821		5,013		1,910		2,648		21		4,579
Expected credit (gains) losses on securities for which credit losses were previously recorded	(3,030)		(650)		(1,624)		(280)		(64)		(5,648)		8,534		2,042		(3)		10,573
Reduction due to disposals	—		(7)		(2)		—		—		(9)		(33)		(5)		—		(38)
Allowance for expected credit losses, end of period	$	29,603	$	5,026	$	158	$	1,164	$	757	$	36,708	$	32,633	$	4,701	$	18	$	37,352

During the year ended December 31, 2023, the Company decreased 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 a reduction in unrealized losses primarily associated with foreign government securities. During the year ended December 31, 2022, the Company increased the allowance for expected credit losses for available for sale securities due to an increase in unrealized losses primarily associated with foreign government securities.

The amortized cost and fair value of fixed maturity securities at December 31, 2023, 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	$	1,937,329	$	1,860,397
Due after one year through five years	9,608,345		9,327,652
Due after five years through ten years	4,368,259		4,260,217
Due after ten years	2,568,038		2,463,851
Mortgage-backed securities	2,433,231		2,269,430
Total	$	20,915,202	$	20,181,547

(1) Amortized cost is reduced by the allowance for expected credit losses of $43 thousand related to held to maturity securities.

At December 31, 2023 and 2022, 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, 2023, investments with a carrying value of $2,162 million were on deposit in custodial or trust accounts, of which $1,180 million was on deposit with insurance regulators, $921 million was on deposit in support of the Company’s underwriting activities at Lloyd’s, $32 million was on deposit as security for reinsurance clients and $29 million was on deposit as security for letters of credit issued in support of the Company’s reinsurance operations.

(4) Investments in Equity Securities

At December 31, 2023 and 2022, investments in equity securities were as follows:


(In thousands)	Cost			Gross Unrealized				Fair Value		Carrying Value
Gains			Losses
December 31, 2023
Common stocks	$	664,997		$	191,806	$	(18,749)	$	838,054	$	838,054
Preferred stocks	284,335			3,075		(35,117)		252,293		252,293
Total	$	949,332		$	194,881	$	(53,866)	$	1,090,347	$	1,090,347

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

(5) Arbitrage Trading Account

At December 31, 2023 and 2022, the fair value and carrying value of the arbitrage trading account were $938 million and $944 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, 2023, the fair value of long option contracts outstanding was $185 thousand (notional amount of $75 million) and the fair value of short option contracts outstanding was $9 million (notional amount of $75 million). Other than with respect to the use of these trading account securities, the Company does not make use of derivatives.

(6) Net Investment Income

Net investment income consists of the following:


(In thousands)	2023		2022		2021
Investment income (loss) earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	929,098	$	549,281	$	382,001
Arbitrage trading account (1)	69,369		45,213		37,676
Equity securities	55,726		52,600		32,020
Investment funds	16,743		145,099		220,014
Real estate	(11,185)		(3,087)		7,703
Gross investment income	1,059,751		789,106		679,414
Investment expense	(6,916)		(9,921)		(7,796)
Net investment income	$	1,052,835	$	779,185	$	671,618

(1) Net investment income includes earnings from trading account receivables from brokers and clearing organizations.

(7) 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 $339 million as of December 31, 2023.

Investment funds consist of the following:


	Carrying Value as of December 31,				Income (Loss) From Investment Funds For the Year Ended
(In thousands)	2023		2022		2023		2022		2021
Financial services	$	433,407	$	465,683	$	(10,911)	$	34,030	$	98,893
Transportation	344,278		336,753		40,607		53,180		42,424
Real estate	201,625		204,644		(6,676)		48,723		29,484
Energy	114,794		116,432		5,058		1,425		22,118
Infrastructure	130,589		115,428		13,049		4,603		1,372
Other funds	396,962		369,608		(24,384)		3,138		25,723
Total	$	1,621,655	$	1,608,548	$	16,743	$	145,099	$	220,014

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, 2023 and 2022, the Company ceded approximately $437 million and $399 million, respectively, of written premiums to Lifson Re.

Other funds include deferred compensation trust assets of $36 million and $30 million in 2023 and 2022, 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.

(8) Real Estate

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


	As of December 31,
(In thousands)	2023		2022
Properties in operation	$	1,022,654	$	1,114,167
Properties under development	227,220		226,455
Total	$	1,249,874	$	1,340,622

In 2023, 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 $32,745,000 and $33,206,000 as of December 31, 2023 and 2022, respectively. Related

depreciation expense was $8,935,000 and $12,269,000 for the years ended December 31, 2023 and 2022, respectively. Future minimum rental income expected on operating leases relating to properties in operation is $35,757,855 in 2024, $35,614,848 in 2025, $33,617,000 in 2026, $32,748,310 in 2027, $33,186,534 in 2028 and $503,569,887 thereafter.

The Company recognized impairments on real estate of $72 million in 2023.

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 2023 and 2022, with the completed portion as noted above reported in properties in operation as of December 31, 2023.

(9) Loans Receivable

At December 31, 2023 and 2022, loans receivable were as follows:


	As of December 31,
(In thousands)	2023		2022
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	200,381	$	173,616
Commercial loans	890		19,386
Total	$	201,271	$	193,002

Fair value:
Real estate loans	$	197,354	$	168,595
Commercial loans	890		19,386
Total	$	198,244	$	187,981

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.

In 2023, the Company recognized an $18.8 million impairment on commercial loans.

Loans receivable in non-accrual status was none and $0.2 million as of December 31, 2023 and 2022, respectively.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the years ended December 31, 2023 and 2022:


	2023						2022
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Allowance for expected credit losses, beginning of period	$	1,100	$	691	$	1,791	$	1,362	$	356	$	1,718
Reduction due to write-offs	—		(569)		(569)		—		—		—
Change in allowance for expected credit losses	1,883		(101)		1,782		(262)		335		73
Allowance for expected credit losses, end of period	$	2,983	$	21	$	3,004	$	1,100	$	691	$	1,791

During the year ended December 31, 2023, the Company increased the allowance for expected credit losses due to changes in economic assumptions utilized in its credit loss model.

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.

(10) Net Investment Gains

Net investment gains were as follows:


(In thousands)	2023		2022		2021
Net investment gains:
Fixed maturity securities:
Gains	$	2,003	$	4,224	$	18,981
Losses	(25,429)		(11,654)		(6,975)
Equity securities (1):
Net realized gains (losses) on investment sales (2)	161,271		(12,879)		16,365
Change in unrealized gains (losses)	70,448		(632)		(38,455)
Investment funds	(25,625)		12,407		44,778
Real estate (3) (4)	(70,934)		293,525		94,911
Loans receivable	(18,841)		(32)		(881)
Other	(45,353)		(67,648)		(21,766)
Net realized and unrealized gains on investments in earnings before allowance for expected credit losses	47,540		217,311		106,958
Change in allowance for expected credit losses on investments:
Fixed maturity securities	715		(14,841)		(20,045)
Loans receivable	(1,213)		(73)		3,719
Change in allowance for expected credit losses on investments	(498)		(14,914)		(16,326)
Net investment gains	47,042		202,397		90,632
Income tax expense	(10,250)		(42,670)		(17,710)
After-tax net investment gains	$	36,792	$	159,727	$	72,922


Change in unrealized investment gains (losses):
Fixed maturity securities without allowance for expected credit losses	$	389,839	$	(1,216,292)	$	(262,221)
Fixed maturity securities with allowance for expected credit losses	643		(28,370)		10,124

Investment funds	3,989		(2,019)		(1,270)
Other	(1,568)		(1,447)		(1,572)
Total change in unrealized investment gains (losses)	392,903		(1,248,128)		(254,939)
Income tax (expense) benefit	(86,350)		264,325		56,127
Noncontrolling interests	(2)		(2)		(2)
After-tax change in unrealized investment gains (losses)	$	306,551	$	(983,805)	$	(198,814)

(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 gains (losses) 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) In June 2023, the Company completed a sale of the property and casualty insurance services division of Breckenridge IS, Inc. and recognized a pre-tax net realized gain on investment of $89 million on the sale (proceeds from the sale is presented on the business disposition line within the Consolidated Statements of Cash Flows).

(3) The Company recognized impairments on real estate of $72 million in 2023.

(4) 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.

(11) Fixed Maturity Securities in an Unrealized Loss Position

The following tables summarize all fixed maturity securities in an unrealized loss position at December 31, 2023 and 2022 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, 2023
U.S. government and government agency	$	384,392	$	6,655	$	614,623	$	51,014	$	999,015	$	57,669
State and municipal	264,273		3,013		1,680,034		119,449		1,944,307		122,462
Mortgage-backed securities	278,819		2,025		1,360,748		175,131		1,639,567		177,156
Asset-backed securities	413,511		2,070		2,176,035		71,136		2,589,546		73,206
Corporate	874,754		11,975		4,418,309		231,288		5,293,063		243,263
Foreign government	204,908		1,758		794,174		135,661		999,082		137,419
Fixed maturity securities	$	2,420,657	$	27,496	$	11,043,923	$	783,679	$	13,464,580	$	811,175





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

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, 2023 is presented in the table below:


($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Foreign government	33	$	102,689	$	107,301
State and municipal	5	22,830		6,469
Corporate	16	21,424		1,928

Mortgage-backed securities	15	4,393		185
Asset-backed securities	5	197		148
Total	74	$	151,533	$	116,031

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.

(12) 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, 2023 and 2022 by level:


(In thousands)	Total		Level 1		Level 2		Level 3
December 31, 2023
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	1,716,731	$	—	$	1,716,731	$	—
State and municipal	2,634,422		—		2,634,422		—
Mortgage-backed securities	2,266,455		—		2,266,455		—
Asset-backed securities	4,187,040		—		4,187,040		—
Corporate	7,654,059		—		7,654,059		—
Foreign government	1,666,229		—		1,666,229		—
Total fixed maturity securities available for sale	20,124,936		—		20,124,936		—
Equity securities:
Common stocks	838,054		835,338		1,158		1,558
Preferred stocks	252,293		—		248,598		3,695
Total equity securities	1,090,347		835,338		249,756		5,253
Arbitrage trading account	938,049		546,110		388,167		3,772

Total	$	22,153,332	$	1,381,448	$	20,762,859	$	9,025
Liabilities:
Trading account securities sold but not yet purchased	$	9,357	$	9,357	$	—	$	—

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	$	—	$	—	$	—	$	—

The following tables summarize changes in Level 3 assets and liabilities for the years ended December 31, 2023 and 2022:


	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, 2023
Assets:
Fixed maturity securities available for sale:

Corporate	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Total	—		—		—		—		—		—		—		—		—
Equity securities:
Common stocks	2,599		(1,041)		—		—		—		—		—		—		1,558
Preferred stocks	11,299		(3)		—		(7,601)		—		—		—		—		3,695
Total	13,898		(1,044)		—		(7,601)		—		—		—		—		5,253
Arbitrage trading account	3,590		117		—		—		—		—		—		65		3,772
Total	$	17,488	$	(927)	$	—	$	(7,601)	$	—	$	—	$	—	$	65	$	9,025
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

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)		—		—		4,686		(917)		—		—		3,590
Total	$	20,590	$	(6,871)	$	—	$	—	$	5,611	$	(1,842)	$	—	$	—	$	17,488
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

For the year ended December 31, 2023, an equity security, which no longer had a publicly traded price, was transferred into Level 3. For the year ended December 31, 2022, there were no securities transferred into or out of Level 3.

(13) 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 auto, 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 auto 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, 2023, 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, 2014 to 2022 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, 2023 exchange rate for all periods.

Insurance

Other Liability

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2023
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	846,005	$	847,308	$	845,254	$	849,657	$	862,568	$	868,639	$	863,890	$	862,440	$	863,636	$	863,342	$	28,447	28
2015			949,853		985,529		960,136		963,237		965,497		975,534		982,145		1,011,753		1,018,418		42,923		28
2016					1,017,074		1,010,016		1,019,067		1,030,490		1,044,563		1,060,478		1,092,036		1,134,162		80,989		28
2017							1,065,837		1,099,566		1,121,979		1,138,821		1,178,596		1,249,086		1,267,359		95,118		28
2018									1,104,011		1,131,672		1,121,429		1,156,233		1,232,803		1,299,691		141,108		28
2019											1,240,667		1,237,516		1,237,950		1,294,768		1,371,217		205,380		29
2020													1,339,702		1,212,875		1,158,966		1,167,753		317,212		23
2021															1,534,634		1,390,800		1,347,336		537,640		25
2022																	1,823,703		1,830,125		1,116,619		25
2023																			2,120,365		1,815,051		19
Total																			$	13,419,768


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	78,811	$	190,637	$	337,870	$	479,657	$	593,577	$	679,351	$	729,573	$	759,003	$	782,462	$	810,687
2015			82,664		210,421		381,682		537,415		675,274		756,353		814,964		873,489		928,793
2016					69,404		208,851		389,988		558,176		676,957		766,774		871,252		955,951
2017							79,937		255,591		453,073		638,879		774,674		930,529		1,048,203
2018									86,788		264,261		435,711		615,688		806,757		986,108
2019											88,173		275,315		471,186		704,851		909,617
2020													72,203		224,991		423,186		621,085
2021															76,568		267,564		492,271
2022																	93,477		356,621
2023																			92,758
Total																			$	7,202,094
	Reserves for loss and loss adjustment expenses before 2014, net of reinsurance																		154,001
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	6,371,675

Workers' Compensation

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2023
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	639,436	$	637,307	$	627,767	$	617,242	$	615,435	$	604,030	$	600,194	$	602,000	$	598,977	$	589,283	$	12,555	57
2015			712,800		690,525		650,997		641,169		626,432		620,741		617,478		612,687		603,732		18,013		58
2016					702,716		696,339		684,700		660,520		651,278		657,972		654,385		641,549		19,823		58
2017							762,093		733,505		689,622		673,216		683,880		682,153		675,871		22,933		58
2018									778,964		724,697		715,055		724,056		721,170		715,018		27,179		56
2019											784,281		721,018		732,762		734,034		722,456		39,081		54
2020													725,245		716,430		704,008		668,222		36,045		42
2021															742,687		701,703		667,517		67,127		46
2022																	772,620		745,218		153,476		46
2023																			784,906		352,511		43
Total																			$	6,813,772


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	148,405	$	319,743	$	412,611	$	471,235	$	503,915	$	521,141	$	531,475	$	538,914	$	547,894	$	553,739
2015			139,320		323,744		421,734		477,541		512,933		531,512		544,849		557,215		564,658
2016					142,998		338,835		446,072		504,850		537,861		558,934		572,669		584,330
2017							153,456		362,299		468,817		525,753		559,198		583,258		603,006
2018									171,006		397,464		508,546		574,889		613,675		642,292
2019											184,715		397,376		515,914		581,003		618,324
2020													172,478		380,454		485,203		548,585
2021															172,729		384,867		490,648
2022																	180,982		408,929
2023																			195,204
Total																			$	5,209,715
			Reserves for loss and loss adjustment expenses before 2014, net of reinsurance																208,451
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,812,508

Professional Liability

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2023
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	252,473	$	245,854	$	258,874	$	242,903	$	238,388	$	257,205	$	256,157	$	255,527	$	254,514	$	256,527	$	10,067	7
2015			259,122		257,634		274,233		275,604		291,157		282,452		282,806		286,950		286,320		13,275		8
2016					310,140		324,043		360,778		401,569		438,761		468,154		463,625		449,678		15,850		9
2017							333,255		332,317		338,526		377,209		384,107		393,054		401,661		45,095		10
2018									335,128		322,297		333,413		359,493		382,239		397,593		81,991		10
2019											336,397		332,426		345,548		354,121		362,983		89,944		11
2020													394,304		375,559		337,796		313,386		100,150		11
2021															525,389		471,456		446,596		215,820		11
2022																	649,725		586,327		405,848		11
2023																			648,231		509,380		12
Total																			$	4,149,302


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	19,318	$	83,246	$	137,931	$	175,230	$	198,176	$	214,915	$	226,323	$	235,581	$	238,277	$	243,397
2015			20,319		85,169		139,396		187,007		215,821		232,506		239,514		246,501		258,988
2016					28,503		102,232		201,167		254,994		297,088		357,094		405,052		412,645
2017							36,450		96,179		162,660		242,929		261,033		306,535		329,303
2018									28,108		99,540		155,102		198,546		244,068		283,639
2019											31,635		97,302		147,767		200,259		235,124
2020													27,996		80,180		128,869		169,000
2021															28,542		85,886		153,063
2022																	33,417		90,594
2023																			41,064
Total																			$	2,216,817
	Reserves for loss and loss adjustment expenses before 2014, net of reinsurance																		38,814
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	1,971,299

Auto

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2023
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	363,882	$	385,214	$	417,539	$	415,490	$	412,929	$	412,757	$	408,304	$	407,435	$	408,816	$	408,743	$	291	47
2015			389,529		416,251		422,344		430,503		431,514		429,950		427,079		428,898		428,339		1,013		53
2016					430,132		429,762		441,051		442,122		438,917		438,616		440,412		442,164		2,410		52
2017							430,445		428,420		430,205		434,186		440,004		444,483		445,263		3,148		47
2018									442,701		462,657		479,085		494,442		521,794		530,374		6,234		45
2019											483,120		488,379		504,901		530,967		548,688		11,878		45
2020													523,739		428,761		442,165		469,184		16,227		30
2021															614,422		596,810		632,918		54,629		38
2022																	792,553		825,359		192,025		44
2023																			916,722		444,715		40
Total																			$	5,647,754


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	155,553	$	237,622	$	327,548	$	364,768	$	393,428	$	401,368	$	404,067	$	405,061	$	405,817	$	407,212
2015			159,932		264,377		324,175		369,223		396,832		410,275		416,060		419,891		421,749
2016					183,777		278,289		340,319		389,233		408,676		419,203		427,662		433,882
2017							180,494		267,309		326,851		371,755		401,846		419,548		431,165
2018									180,110		281,564		350,212		412,985		463,232		498,094
2019											185,289		290,194		374,545		440,449		495,111
2020													142,816		228,358		308,452		374,990
2021															180,860		319,941		429,419
2022																	253,206		428,621
2023																			277,634
Total																			$	4,197,877
			Reserves for loss and loss adjustment expenses before 2014, net of reinsurance																2,953
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,452,830

Short-tail lines

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2023
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	697,102	$	701,133	$	658,437	$	656,704	$	657,637	$	657,968	$	660,388	$	658,600	$	656,931	$	656,326	$	1,483	30
2015			737,494		725,927		722,556		721,082		713,225		711,665		709,937		710,266		714,974		2,044		32
2016					771,829		775,358		762,449		757,010		751,510		753,926		752,541		752,960		3,288		34
2017							752,865		753,274		747,521		746,878		746,475		747,710		746,406		4,267		42
2018									759,748		748,859		746,183		744,467		742,212		741,264		7,835		48
2019											721,072		701,168		690,928		684,606		684,707		14,592		43
2020													900,816		904,545		922,258		926,379		7,624		38
2021															828,347		832,240		815,228		24,478		36
2022																	945,041		928,562		54,776		36
2023																			1,075,325		286,870		27
Total																			$	8,042,131


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	369,514	$	590,511	$	608,396	$	626,751	$	641,861	$	649,068	$	651,560	$	652,054	$	652,379	$	652,449
2015			392,762		608,056		663,402		685,314		694,780		700,569		707,271		707,447		716,682
2016					416,513		669,738		711,238		726,462		731,552		738,302		739,143		744,157
2017							445,208		689,587		718,436		730,584		734,415		741,582		746,917
2018									414,833		661,607		708,101		725,027		725,128		730,199
2019											404,870		615,748		645,251		657,699		665,789
2020													460,351		784,553		845,590		900,682
2021															405,461		698,030		754,448
2022																	472,020		799,125
2023																			565,586
Total																			$	7,276,034
	Reserves for loss and loss adjustment expenses before 2014, net of reinsurance																		5,171
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	771,268

Reinsurance & Monoline Excess

Casualty

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2023
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR
2014	$	319,818	$	319,210	$	318,559	$	330,354	$	324,470	$	323,855	$	335,560	$	336,622	$	341,244	$	343,235	$	13,680
2015			259,244		231,574		230,136		252,249		293,032		303,053		304,503		308,986		313,327		16,235
2016					240,868		252,786		245,317		267,808		301,629		301,242		310,273		309,126		19,483
2017							231,313		220,878		238,916		261,438		281,132		298,284		314,895		28,441
2018									221,393		210,492		230,817		246,861		261,004		292,927		37,287
2019											236,517		230,620		239,206		240,879		272,393		52,998
2020													299,888		293,574		290,037		313,904		103,742
2021															360,399		347,054		344,272		190,749
2022																	447,231		437,358		325,597
2023																			449,816		396,340
Total																			$	3,391,253


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	21,302	$	68,906	$	115,585	$	154,811	$	197,644	$	227,038	$	251,736	$	271,062	$	283,876	$	296,469
2015			17,876		48,371		91,016		141,073		178,280		204,981		233,281		250,504		266,497
2016					19,884		61,710		100,074		140,104		171,465		205,052		224,739		241,884
2017							16,457		40,013		69,190		123,404		147,049		174,745		207,378
2018									11,056		40,884		77,371		109,290		141,309		182,326
2019											14,544		39,035		63,945		94,735		142,501
2020													20,746		49,637		81,710		137,043
2021															10,910		43,791		89,076
2022																	11,574		45,625
2023																			10,603
Total																			$	1,619,402
	Reserves for loss and loss adjustment expenses before 2014, net of reinsurance																		402,281
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	2,174,132

Monoline Excess

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2023
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR
2014	$	63,465	$	57,558	$	49,478	$	45,758	$	41,671	$	42,541	$	42,618	$	40,652	$	35,707	$	32,185	$	3,400
2015			69,977		57,897		50,099		45,115		39,682		39,781		36,774		30,104		27,590		4,664
2016					72,657		70,281		71,404		64,957		65,485		65,222		61,432		53,304		6,192
2017							76,701		80,508		70,749		71,025		66,795		62,647		55,713		9,442
2018									77,820		72,505		71,448		66,180		57,847		50,744		12,964
2019											78,929		77,482		76,242		73,978		66,071		12,977
2020													84,354		83,468		80,452		72,376		26,582
2021															98,110		87,980		77,220		31,581
2022																	98,923		76,725		35,307
2023																			110,446		73,881
Total																			$	622,374


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	358	$	1,729	$	3,354	$	4,175	$	5,808	$	7,595	$	11,154	$	11,938	$	13,491	$	14,632
2015			2,069		2,481		3,272		4,099		4,416		5,083		5,421		6,457		6,844
2016					2,498		4,783		5,573		5,928		7,685		9,883		11,819		13,569
2017							6,282		12,810		15,356		17,327		18,375		19,275		21,275
2018									6,141		8,230		9,368		10,359		12,414		13,583
2019											6,241		10,884		12,728		15,436		18,836
2020													4,869		8,699		10,471		12,869
2021															4,586		6,026		8,872
2022																	5,898		10,564
2023																			6,390
Total																			$	127,434
	Reserves for loss and loss adjustment expenses before 2014, net of reinsurance																		576,491
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	1,071,431

Property

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2023
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		IBNR
2014	$	113,055	$	96,586	$	97,261	$	99,973	$	99,200	$	98,846	$	99,244	$	97,308	$	96,648	$	96,135	$	344
2015			127,315		117,503		131,722		130,389		129,472		131,133		130,697		131,393		131,947		1,007
2016					167,998		174,440		181,595		180,816		186,086		184,053		185,133		186,176		1,303
2017							206,666		200,487		199,481		198,039		191,941		192,458		193,551		1,452
2018									108,348		112,133		103,192		105,165		103,015		101,498		1,898
2019											103,316		77,255		82,036		81,192		81,157		2,479
2020													114,645		117,885		116,786		121,417		4,291
2021															133,989		146,726		144,429		13,709
2022																	167,223		167,351		30,362
2023																			137,685		60,458
Total																			$	1,361,346


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	38,734	$	66,816	$	82,113	$	88,240	$	91,376	$	93,087	$	94,552	$	95,186	$	95,620	$	94,996
2015			53,435		89,120		109,053		118,615		122,630		125,494		126,895		128,037		128,947
2016					78,887		133,478		157,341		168,433		175,867		177,961		182,300		184,208
2017							72,114		141,390		171,736		179,799		182,680		185,895		188,497
2018									33,972		65,071		82,327		87,789		94,931		96,262
2019											23,129		54,709		68,693		71,264		73,234
2020													26,606		65,563		86,885		95,643
2021															15,245		71,800		109,179
2022																	25,515		91,718
2023																			24,737
Total																			$	1,087,421
	Reserves for loss and loss adjustment expenses before 2014, net of reinsurance																		1,472
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	275,397

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, 2023
Undiscounted reserves for loss and loss expenses, net of reinsurance:
	Other liability	$	6,371,675
	Workers' compensation	1,812,508
	Professional liability	1,971,299
	Auto	1,452,830
	Short-tail lines	771,268
	Other	151,204
	Insurance	12,530,784
	Casualty	2,174,132
	Monoline excess	1,071,431
	Property	275,397
	Reinsurance & Monoline Excess	3,520,960
Total undiscounted reserves for loss and loss expenses, net of reinsurance		$	16,051,744


(In thousands)		December 31, 2023
Due from reinsurers on unpaid claims:
	Other liability	$	951,773
	Workers' compensation	189,182
	Professional liability	1,138,129
	Auto	81,334
	Short-tail lines	379,621
	Other	127,581
	Insurance	2,867,620
	Casualty	116,198
	Monoline excess	40,467
	Property	53,547
	Reinsurance & Monoline Excess	210,212
Total due from reinsurers on unpaid claims		$	3,077,832


(In thousands)		December 31, 2023
Loss reserve discount:
	Other liability	$	—
	Workers' compensation	(12,193)
	Professional liability	—
	Auto	—
	Short-tail lines	—
	Other	—
	Insurance	(12,193)
	Casualty	(72,503)
	Monoline excess	(305,228)
	Property	—
	Reinsurance & Monoline Excess	(377,731)
Total loss reserve discount		$	(389,924)
Total gross reserves for loss and loss expenses		$	18,739,652

The following is supplementary information regarding average historical claims duration as of December 31, 2023:


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	6.4	%	13.4	%	15.8	%	15.6	%	12.9	%	10.4	%	7.5	%	5.5	%	4.1	%	3.3	%
Workers' compensation	24.4	%	30.6	%	16.0	%	9.2	%	5.3	%	3.4	%	2.3	%	1.7	%	1.4	%	1.0	%
Professional liability	7.3	%	17.1	%	17.2	%	14.5	%	9.0	%	9.4	%	5.8	%	2.6	%	4.0	%	2.0	%
Auto	34.5	%	20.6	%	15.8	%	11.3	%	7.3	%	3.6	%	1.6	%	0.8	%	0.3	%	0.3	%
Short-tail lines	54.4	%	33.4	%	5.5	%	2.8	%	1.0	%	0.9	%	0.5	%	0.3	%	0.4	%	0.3	%

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	4.7	%	10.0	%	11.7	%	13.9	%	11.7	%	10.1	%	8.2	%	5.6	%	4.4	%	3.7	%
Monoline excess	7.2	%	5.1	%	3.1	%	2.7	%	3.4	%	3.2	%	4.9	%	3.2	%	3.1	%	3.5	%
Property	28.8	%	33.5	%	17.1	%	5.6	%	3.5	%	1.6	%	1.6	%	0.6	%	0.2	%	—	%

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


(In thousands)	2023		2022		2021
Net reserves at beginning of year	$	14,248,879	$	12,848,362	$	11,620,393


Net provision for losses and loss expenses:
Claims occurring during the current year (1)	6,311,780		5,774,713		4,921,191
Increase in estimates for claims occurring in prior years (2)	29,681		54,511		863
Loss reserve discount accretion	30,681		32,526		31,906
Total	6,372,142		5,861,750		4,953,960
Net payments for claims:
Current year	1,217,078		1,068,577		887,896
Prior year	3,764,532		3,279,333		2,777,798
Total	4,981,610		4,347,910		3,665,694
Foreign currency translation	22,409		(113,323)		(60,297)
Net reserves at end of year	15,661,820		14,248,879		12,848,362
Ceded reserve at end of year	3,077,832		2,762,344		2,542,526
Gross reserves at end of year	$	18,739,652	$	17,011,223	$	15,390,888

Net change in premiums and losses occurring in prior years:
Increase in estimates for claims occurring in prior years (2)	$	(29,681)	$	(54,511)	$	(863)
Retrospective premium adjustments for claims occurring in prior years (3)	10,782		18,106		7,510
Net premium and reserve development on prior years	$	(18,899)	$	(36,405)	$	6,647

(1)Claims occurring during the current year are net of loss reserve discounts of $47 million, $35 million and $21 million in 2023, 2022, and 2021, respectively.

(2)The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years decreased by $13 million in 2023, increased by $16 million in 2022, and decreased by $19 million in 2021.

(3)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 impacted, and may further impact, the Company’s loss costs. Accordingly, the ultimate net impact of COVID-19 on the Company’s reserves remains uncertain. As of December 31, 2023, the Company had recognized losses for COVID-19-related claims activity, net of reinsurance, of approximately $384 million, of which $326 million relates to the Insurance segment and $58 million relates to the Reinsurance & Monoline Excess segment. Such $384 million of COVID-19-related losses included $381 million of reported losses and $3 million of IBNR. For the year ended December 31, 2023, the Company recognized current accident year losses for COVID-19-related claims activity, net of reinsurance, of approximately $1 million, all of which relates to the Insurance segment.

Unfavorable prior year development (net of additional and return premiums) was $19 million in 2023.

Insurance – Reserves for the Insurance segment developed unfavorably by $24 million in 2023 (net of additional and return premiums). The unfavorable development for the segment was concentrated in the early part of the year, with reserve development being flat overall during the second half of 2023. A key driver of the unfavorable development early in 2023 was property catastrophe losses related to 2022 events which were still being adjusted and settled during the early part of 2023. In particular, losses related to U.S. winter storms which occurred during the month of December 2022 were a significant contributor to the development, as information gathering and evaluation of many of these claims were still ongoing into the new year.

In addition to the property prior year development discussed above, during 2023 the Insurance segment also experienced adverse prior year development on casualty lines of business for the 2016 through 2019 accident years, which was offset by favorable prior year development on casualty lines of business for the 2020 through 2022 accident years. The unfavorable development on the 2016 through 2019 accident years was concentrated in the general liability and commercial auto liability

lines of business. The development, which particularly impacted business attaching excess of primary policy limits, 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.

The favorable prior year development on casualty lines for the 2020 through 2022 accident years in the Insurance segment was concentrated in the professional liability, workers’ compensation, and general liability lines of business. Due to elevated uncertainty regarding incurred loss frequency and severity as a result of ongoing social inflation and the impacts of the COVID-19 pandemic, the Company set its initial loss ratios for the 2020 through 2022 accident years prudently, and largely maintained these estimates through the end of each respective accident year. The reported loss experience to date for these lines of business for the 2020 through 2022 accident years has been significantly better than was expected, and the Company has begun to react to this favorable emergence as the accident years mature beyond the age of twelve months. It should also be noted that commercial auto liability experienced adverse prior year development for the 2020 through 2022 accident years, which partially offset the favorable development discussed above; the adverse development was driven by a larger than expected number of large losses reported.

Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed favorably by $5 million in 2023 (net of additional and return premiums). The overall favorable prior year development for the segment was driven mainly by favorable development in excess workers’ compensation, substantially offset by unfavorable development in the non-proportional reinsurance assumed liability and excess general liability (including umbrella) lines of business. The favorable excess workers’ compensation development was driven by continued lower claim frequency and reported losses relative to our expectations, and to favorable claim settlements. The favorable development was spread across many prior accident years. The unfavorable development for non-proportional reinsurance assumed liability and excess general liability was associated primarily with our U.S. assumed reinsurance business, and related to accounts reinsuring excess and umbrella business and construction projects. The adverse development was concentrated mainly in accident years 2017 through 2020.

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 its expectations for these accident years as they developed during 2022. These trends began in 2020 and we believe were caused by the impacts of the COVID-19 pandemic, including for example, lockdowns, reduced driving/traffic and increased work from home. Due to the uncertainty regarding the ultimate impacts of the pandemic on accident years 2020 and 2021 incurred losses, the Company was cautious in reacting to these lower trends in setting and updating its loss ratio estimates for these years. As these accident years have continued to mature, the Company has continued to recognize some of the favorable reported experience in its ultimate loss estimates made during 2022.

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

Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed favorably by $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 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 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.

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 $17 million and $20 million at December 31, 2023 and 2022, respectively. 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 $1,352 million and $1,464 million at December 31, 2023 and 2022, respectively. The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $390 million and $416 million at December 31, 2023 and 2022, respectively. At December 31, 2023, discount rates by year ranged from 0.7% to 6.5%, with a weighted average discount rate of 3.5%.

Substantially all discounted workers’ compensation reserves (97% of total discounted reserves at December 31, 2023) 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, 2023), 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.

(14) 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)	2023		2022		2021
Written premiums:
Direct	$	11,676,743	$	10,695,138	$	9,531,050
Assumed	1,295,263		1,213,914		1,169,084
Ceded	(2,017,539)		(1,904,982)		(1,837,267)
Total net written premiums	$	10,954,467	$	10,004,070	$	8,862,867

Earned premiums:
Direct	$	11,112,980	$	10,217,891	$	8,825,568
Assumed	1,246,288		1,226,801		1,085,804
Ceded	(1,958,581)		(1,883,263)		(1,805,341)
Total net earned premiums	$	10,400,687	$	9,561,429	$	8,106,031

Ceded losses and loss expenses incurred	$	1,376,144	$	1,269,338	$	1,236,960
Ceded commission earned	$	471,841	$	477,437	$	449,739

The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the years ended December 31, 2023 and 2022:


(In thousands)	2023		2022
Allowance for expected credit losses, beginning of period	$	30,660	$	25,218

Change in allowance for expected credit losses	4,450		5,442
Allowance for expected credit losses, end of period	$	35,110	$	30,660

Estimated amounts due from reinsurers are reported net of an allowance for expected credit losses of $8.4 million, $8.1 million and $7.7 million as of December 31, 2023, 2022 and 2021, 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, 2023 and 2022:


(In thousands)	2023		2022
Allowance for expected credit losses, beginning of period	$	8,064	$	7,713

Change in allowance for expected credit losses	340		351
Allowance for expected credit losses, end of period	$	8,404	$	8,064

The following table presents the amounts due from reinsurers as of December 31, 2023:


(In thousands)

Lloyd’s of London	$	402,210
Lifson Re	335,382
Partner Re	314,471
Munich Re	310,985
Berkshire Hathaway	307,878
Hannover Re Group	231,172
Renaissance Re	217,008
Swiss Re	176,377
Everest Re	145,155
Liberty Mutual	117,556
Axis Capital	86,680
Fairfax Financial	64,300
Korean Re	57,530
Arch Capital Group	54,175
Sompo Holdings Group	47,520
Axa Insurance	45,680
TOA RE	37,140
Nationwide Group	32,411
Markel Corp Group	31,827
Helvetia Holdings Group	31,429
Chubb Group	24,459
MS & AD Insurance Group	20,144
Other reinsurers less than $20,000	316,649
Subtotal	3,408,138
Residual market pools (1)	134,793
Allowance for expected credit losses	(8,404)
Total	$	3,534,527

(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.

(15) Indebtedness

Indebtedness consisted of the following as of December 31, 2023 (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		2023		2022
Senior notes and other debt due on:



February 15, 2037	6.250%	$	250,000	$	248,556	$	248,446
August 1, 2044	4.750%	350,000		346,205		346,020
May 12, 2050	4.000%	470,000		489,964		490,721
March 30, 2052	3.550%	400,000		394,411		394,213
September 30, 2061	3.150%	350,000		343,129		342,945

Subsidiary debt and other (1)	Various	5,686		5,686		6,478
Total senior notes and other debt		$	1,825,686	$	1,827,951	$	1,828,823
Subordinated debentures due on:



March 30, 2058	5.700%	$	185,000	$	179,489	$	179,328
December 30, 2059	5.100%	300,000		291,418		291,179
September 30, 2060	4.250%	250,000		244,668		244,523
March 30, 2061	4.125%	300,000		293,515		293,341
Total subordinated debentures		$	1,035,000	$	1,009,090	$	1,008,371

(1) Subsidiary debt of $6 million is due in 2024, partially offset by the unamortized cost of $0.6 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, 2023, there were no borrowings outstanding under the facility.

(16) Income Taxes

Income tax expense (benefit) consists of:


(In thousands)	Current Expense		Deferred (Benefit) Expense		Total
December 31, 2023
Domestic	$	352,891	$	(43,456)	$	309,435
Foreign	44,372		16,750		61,122
Total expense (benefit)	$	397,263	$	(26,706)	$	370,557

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

Income before income taxes from domestic operations was $1,430 million, $1,240 million and $1,224 million for the years ended December 31, 2023, 2022 and 2021, respectively. Income before income taxes from foreign operations was $324 million, $480 million and $59 million for the years ended December 31, 2023, 2022 and 2021, respectively.

A reconciliation of the income tax expense and the amounts computed by applying the Federal and foreign income tax rate of 21% for 2023, 2022 and 2021 to pre-tax income are as follows:


(In thousands)	2023		2022		2021
Computed “expected” tax expense	$	368,425	$	361,133	$	269,410
Tax-exempt investment income	(8,361)		(10,815)		(11,380)
Change in valuation allowance	(10,883)		(28,064)		2,974
Impact of foreign tax rates	5,461		(453)		(2,368)
State and local taxes	12,271		8,976		4,230

Other, net	3,644		3,950		(10,976)
Total expense	$	370,557	$	334,727	$	251,890

At December 31, 2023 and 2022, 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)	2023		2022
Deferred tax asset:
Loss reserve discounting	$	230,956	$	192,181
Unearned premiums	200,938		180,326
Unrealized investment losses	126,693		228,456
Net operating losses & foreign tax credits	59,154		58,182
Other-than-temporary impairments	12,691		5,935
Employee compensation plans	68,062		63,313
Other	78,025		72,536
Gross deferred tax asset	776,519		800,929
Less valuation allowance	(36,283)		(47,166)
Deferred tax asset	740,236		753,763
Deferred tax liability:
Amortization of intangibles	15,205		13,973
Loss reserve discounting - transition rule	9,894		14,843
Deferred policy acquisition costs	176,281		157,055

Property, furniture and equipment	43,501		45,887
Investment funds	161,867		125,525
Other	66,525		67,479
Deferred tax liability	473,273		424,762
Net deferred tax asset	$	266,963	$	329,001

The Company had a net current tax payable of $46 million and a net tax receivable of $5 million at December 31, 2023 and 2022, respectively. At December 31, 2023, the Company had foreign net operating loss carryforwards of $220 million that have no expiration date. At December 31, 2023, the Company had a valuation allowance of $36 million as compared to $47 million at December 31, 2022. 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, 2019.

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 $261 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.

(17) 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 2024, 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)	2023		2022		2021
Net income	$	1,176,255	$	1,358,813	$	1,040,342
Statutory capital and surplus	$	8,776,138	$	8,330,587	$	6,817,535

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 $159 million at December 31, 2023*.*

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, 2023, BIC’s Total Adjusted Capital of $8.6 billion was 391% of its RBC Authorized Control Level.

See Note 3, Investments in Fixed Maturity Securities, for a description of assets held on deposit as security.

(18) Common Stockholders’ Equity

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


(In thousands)	2023	2022	2021
Basic	271,000	276,852	277,430
Diluted	273,298	279,461	279,749

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 11,663,450 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).


	2023	2022	2021
Balance, beginning of year	264,546,100	265,170,882	266,737,725
Shares issued	706,333	745,612	1,062,086
Shares repurchased	(8,707,676)	(1,370,394)	(2,628,929)
Balance, end of year	256,544,757	264,546,100	265,170,882

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.

(19) 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, 2023 and 2022:


	2023				2022
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	20,178,308	$	20,181,547	$	17,587,349	$	17,591,626
Equity securities	1,090,347		1,090,347		1,185,894		1,185,894
Arbitrage trading account	938,049		938,049		944,230		944,230
Loans receivable	201,271		198,244		193,002		187,981
Cash and cash equivalents	1,363,195		1,363,195		1,449,346		1,449,346
Trading accounts receivable from brokers and clearing organizations	303,614		303,614		233,863		233,863
Due from broker	36,747		36,747		3,609		3,609

Liabilities:

Trading account securities sold but not yet purchased	9,357		9,357		—		—
Senior notes and other debt	1,827,951		1,480,076		1,828,823		1,439,188
Subordinated debentures	1,009,090		929,598		1,008,371		805,600

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 12 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.

(20) 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.

On December 22, 2023, one of the Company’s subsidiaries filed a lawsuit against certain reinsurers to recover in excess of $90 million in respect of certain losses paid to its policyholders under certain event cancellation and related insurance policies. The Company believes its claims against the reinsurers are meritorious and expects a positive resolution to its lawsuit. While an adverse outcome is possible, the Company believes that the outcome, in any case, will not be material to the Company’s financial condition.

At December 31, 2023, the Company had commitments to invest up to $339 million and $106 million in certain investment funds and real estate construction projects, respectively.

(21) 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)	2023	2022
Leases:
Lease cost		$	44,256	$	43,383
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows		$	49,910	$	43,871
Right-of-use assets obtained in exchange for new lease liabilities		$	53,753	$	28,075


	As of December 31,
($ in thousands)	2023			2022
Right-of-use assets	$	176,496		$	169,271
Lease liabilities	$	218,621		$	204,088
Weighted-average remaining lease term	7.3 years			7.1 years
Weighted-average discount rate	5.10		%	4.40		%

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


(In thousands)	December 31, 2023
Contractual Maturities:
2024	$	50,222
2025	41,249
2026	34,072
2027	24,900
2028	23,206
Thereafter	84,014
Total undiscounted future minimum lease payments	257,663
Less: Discount impact	39,042
Total lease liability	$	218,621

(22) 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, 2023:


	2023	2022	2021
RSUs granted and unvested at beginning of period:	4,618,426	5,144,519	5,706,504
Granted	1,098,460	1,024,960	1,272,990
Vested	(1,151,304)	(1,258,680)	(1,523,960)
Canceled	(275,404)	(292,373)	(311,016)
RSUs granted and unvested at end of period:	4,290,178	4,618,426	5,144,519

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, 2023, 11,560,624 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, 2023:


(In thousands)	2023		2022		2021
Unearned compensation at beginning of year	$	142,060	$	135,535	$	132,310
RSUs granted, net of cancellations	62,418		60,628		56,711
RSUs expensed	(49,200)		(47,611)		(46,441)
RSUs forfeitures	(7,198)		(6,492)		(7,045)
Unearned compensation at end of year	$	148,080	$	142,060	$	135,535

(23) 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 $75 million, $62 million and $50 million in 2023, 2022 and 2021, 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, 2023:


	Units Outstanding	Maximum Value		Inception to date earned through December 31, 2023 on outstanding units
2019 grant	194,000	$	19,400,000	$	19,400,000
2020 grant	205,500	20,550,000		20,071,041
2021 grant	212,250	21,225,000		17,575,043
2022 grant	233,250	23,325,000		12,238,628
2023 grant	245,500	24,550,000		5,423,639

The following table summarizes the LTIP expense for each of the three years ended December 31, 2023:


(In thousands)	2023		2022		2021



2016 grant	$	—	$	—	$	(117)
2017 grant	—		—		6,012
2018 grant	(125)		4,299		5,503
2019 grant	3,366		6,904		5,309
2020 grant	7,047		6,653		5,065
2021 grant	6,561		6,574		4,906
2022 grant	6,155		6,232		—
2023 grant	5,424		—		—
Total	$	28,428	$	30,662	$	26,678

(24) Supplemental Financial Statement Data

Other operating costs and expenses consist of the following:


(In thousands)	2023		2022		2021
Amortization of deferred policy acquisition costs	$	1,038,975	$	1,038,903	$	961,628
Insurance operating expenses	1,915,711		1,635,000		1,345,099
Insurance service expenses	91,714		96,419		86,003
Net foreign currency losses (gains)	31,799		(50,930)		(25,725)
Debt extinguishment costs	—		—		11,521
Other costs and expenses	285,737		242,113		220,744
Total	$	3,363,936	$	2,961,505	$	2,599,270

(25) 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, 2023
Insurance	$	9,130,324	$	793,998	$	36,830	$	9,961,152	$	1,640,438	$	1,291,654
Reinsurance & Monoline Excess	1,270,363		211,628		—		1,481,991		438,765		346,782
Corporate, other and eliminations (3)	—		47,209		605,544		652,753		(371,842)		(293,869)
Net investment gains	—		—		47,042		47,042		47,042		36,792
Consolidated	$	10,400,687	$	1,052,835	$	689,416	$	12,142,938	$	1,754,403	$	1,381,359

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


Identifiable Assets
(In thousands)	December 31,
	2023		2022
Insurance	$	30,132,743	$	27,009,652
Reinsurance & Monoline Excess	5,389,125		5,195,752
Corporate, other and eliminations (3)	1,680,147		1,655,695
Consolidated	$	37,202,015	$	33,861,099

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

(2) Revenues for Insurance includes $1,171 million, $1,029 million, and $873 million in 2023, 2022 and 2021, respectively, from foreign countries. Revenues for Reinsurance & Monoline Excess includes $463 million, $412 million, and $380 million in 2023, 2022 and 2021, 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)	2023		2022		2021
Insurance
Other liability	$	3,613,900	$	3,206,846	$	2,673,098
Short-tail lines	1,897,070		1,630,371		1,389,068
Auto	1,313,210		1,208,241		990,945
Workers' compensation	1,212,294		1,197,811		1,131,283
Professional liability	1,093,850		1,125,793		893,314
Total Insurance	9,130,324		8,369,062		7,077,708
Reinsurance & Monoline Excess
Casualty	770,920		764,793		643,193
Property	258,317		210,557		183,943
Monoline Excess	241,126		217,017		201,187
Total Reinsurance & Monoline Excess	1,270,363		1,192,367		1,028,323
Total	$	10,400,687	$	9,561,429	$	8,106,031

Previous: Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK · Next: Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE