Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors

W. R. Berkley Corporation:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of W. R. Berkley Corporation and subsidiaries (the Company) as of December 31, 2024 and 2023, 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, 2024, 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, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024, 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, 2024, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 24, 2025 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, 2024 were $20.4 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 24, 2025

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME


	Year Ended December 31,
(In thousands, except per share data)	2024		2023		2022
REVENUES:
Net premiums written	$	11,972,096	$	10,954,467	$	10,004,070
Change in net unearned premiums	(423,611)		(553,780)		(442,641)
Net premiums earned	11,548,485		10,400,687		9,561,429
Net investment income	1,333,161		1,052,835		779,185
Net investment gains:
Net realized and unrealized gains on investments	79,738		47,540		217,311
Change in allowance for expected credit losses on investments	37,970		(498)		(14,914)
Net investment gains	117,708		47,042		202,397
Revenues from non-insurance businesses	528,012		535,508		509,548
Insurance service fees	108,935		106,485		110,544
Other income	2,451		381		3,396
Total revenues	13,638,752		12,142,938		11,166,499
OPERATING COSTS AND EXPENSES:
Losses and loss expenses	7,131,595		6,372,142		5,861,750
Other operating costs and expenses	3,602,306		3,363,936		2,961,505
Expenses from non-insurance businesses	513,451		524,998		493,189
Interest expense	126,907		127,459		130,374
Total operating costs and expenses	11,374,259		10,388,535		9,446,818
Income before income taxes	2,264,493		1,754,403		1,719,681
Income tax expense	(509,916)		(370,557)		(334,727)
Net income before noncontrolling interests	1,754,577		1,383,846		1,384,954
Noncontrolling interests	1,538		(2,487)		(3,892)
Net income to common stockholders	$	1,756,115	$	1,381,359	$	1,381,062
NET INCOME PER SHARE:
Basic	$	4.39	$	3.40	$	3.33
Diluted	$	4.36	$	3.37	$	3.29

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Year Ended December 31,
(In thousands)	2024		2023		2022
Net income before noncontrolling interests	$	1,754,577	$	1,383,846	$	1,384,954
Other comprehensive (loss) gain:
Change in unrealized translation adjustments	(77,615)		32,192		1,179
Change in unrealized investment gains (losses), net of taxes	69,182		306,553		(983,803)

Other comprehensive (loss) gain	(8,433)		338,745		(982,624)
Comprehensive income	1,746,144		1,722,591		402,330
Noncontrolling interests	1,536		(2,485)		(3,890)
Comprehensive income to common stockholders	$	1,747,680	$	1,720,106	$	398,440

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	December 31,
(In thousands, except share data)	2024		2023
Assets
Investments:
Fixed maturity securities (amortized cost of $23,010,899 and $20,915,245; allowance for expected credit losses of $671 and $36,751 at December 31, 2024 and 2023)	$	22,397,865	$	20,178,308
Investment funds	1,468,246		1,621,655
Real estate	1,291,455		1,249,874
Arbitrage trading account	1,122,599		938,049
Equity securities	1,203,788		1,090,347
Loans receivable (net of allowance for expected credit losses of $1,114 and $3,004 at December 31, 2024 and 2023)	405,453		201,271

Total investments	27,889,406		25,279,504
Cash and cash equivalents	1,974,747		1,363,195
Premiums and fees receivable (net of allowance for expected credit losses of $39,884 and $35,110 at December 31, 2024 and 2023)	3,266,845		3,109,334
Due from reinsurers (net of allowance for expected credit losses of $8,350 and $8,404 at December 31, 2024 and 2023)	3,557,695		3,534,527
Deferred policy acquisition costs	951,728		861,609
Prepaid reinsurance premiums	823,207		758,927
Trading account receivable from brokers and clearing organizations	60,327		303,614
Property, furniture and equipment	478,511		426,803
Goodwill	184,332		174,597
Accrued investment income	243,772		213,408
Current federal and foreign income taxes	39,382		1,318
Deferred federal and foreign income taxes	220,217		309,623
Other assets	877,099		865,556
Total assets	$	40,567,268	$	37,202,015
Liabilities and Equity
Liabilities:
Reserves for losses and loss expenses	$	20,368,030	$	18,739,652
Unearned premiums	6,375,112		5,922,326
Due to reinsurers	668,652		631,164
Trading account securities sold but not yet purchased	73,358		9,357

Current federal and foreign income taxes	53,482		47,525
Deferred federal and foreign income taxes	65,151		42,660
Senior notes and other debt	1,831,158		1,827,951
Subordinated debentures	1,009,808		1,009,090
Other liabilities	1,715,078		1,503,053
Total liabilities	32,159,829		29,732,778
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, 380,066,070 and 384,817,136 shares, respectively	158,705		158,705
Additional paid-in capital	984,825		964,789
Retained earnings	12,265,070		11,040,908
Accumulated other comprehensive loss	(934,269)		(925,838)
Treasury stock, at cost, 413,455,739 and 408,704,807 shares, respectively	(4,079,220)		(3,783,133)
Total common stockholders’ equity	8,395,111		7,455,431
Noncontrolling interests	12,328		13,806
Total equity	8,407,439		7,469,237
Total liabilities and equity	$	40,567,268	$	37,202,015

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)		2024		2023		2022
COMMON STOCK:
Beginning and end of period		$	158,705	$	158,705	$	158,705
ADDITIONAL PAID IN CAPITAL:
Beginning of period		$	964,789	$	944,632	$	928,202
Restricted stock units issued		(32,344)		(29,043)		(32,622)
Restricted stock units expensed		52,380		49,200		49,052


End of period		$	984,825	$	964,789	$	944,632
RETAINED EARNINGS:
Beginning of period		$	11,040,908	$	10,161,005	$	9,015,135

Net income to common stockholders		1,756,115		1,381,359		1,381,062
Dividends ($1.40, $1.29, and $0.59 per share, respectively)		(531,953)		(501,456)		(235,192)
End of period		$	12,265,070	$	11,040,908	$	10,161,005
ACCUMULATED OTHER COMPREHENSIVE LOSS:
Unrealized investment (losses) gains:
Beginning of period		$	(586,354)	$	(892,905)	$	90,900

Change in unrealized gains (losses) on securities without an allowance for expected credit losses		64,756		305,908		(955,435)
Change in unrealized gains (losses) on securities with an allowance for expected credit losses		4,428		643		(28,370)
End of period		(517,170)		(586,354)		(892,905)
Currency translation adjustments:
Beginning of period		(339,484)		(371,676)		(372,855)
Net change in period		(77,615)		32,192		1,179
End of period		(417,099)		(339,484)		(371,676)




Total accumulated other comprehensive loss		$	(934,269)	$	(925,838)	$	(1,264,581)
TREASURY STOCK:
Beginning of period		$	(3,783,133)	$	(3,251,429)	$	(3,167,076)
Stock exercised/vested		10,066		10,381		9,787

Stock repurchased		(303,655)		(537,163)		(94,140)
Other		(2,498)		(4,922)		—
End of period		$	(4,079,220)	$	(3,783,133)	$	(3,251,429)
NONCONTROLLING INTERESTS:
Beginning of period		$	13,806	$	19,829	$	14,719
Contributions (distributions)		58		(8,508)		1,220
Net (loss) income		(1,538)		2,487		3,892
Other comprehensive income (loss), net of tax		2		(2)		(2)
End of period		$	12,328	$	13,806	$	19,829

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
(In thousands)	2024		2023		2022
CASH FROM OPERATING ACTIVITIES:
Net income to common stockholders	$	1,756,115	$	1,381,359	$	1,381,062
Adjustments to reconcile net income to net cash from operating activities:
Net investment gains	(117,708)		(47,042)		(202,397)
Depreciation and (accretion) amortization	(170,638)		(20,861)		55,872
Noncontrolling interests	(1,538)		2,487		3,892
Investment funds	11,491		(16,743)		(145,099)
Stock incentive plans	54,381		51,000		49,411
Change in:
Arbitrage trading account	122,738		(54,213)		(53,291)
Premiums and fees receivable	(184,431)		(334,178)		(268,171)
Reinsurance accounts	(31,738)		(306,017)		(266,307)
Deferred policy acquisition costs	(91,150)		(99,387)		(88,844)
Current income taxes	(28,526)		52,451		(3,534)
Deferred income taxes	95,311		(26,691)		(64,712)
Reserves for losses and loss expenses	1,707,722		1,715,076		1,684,254
Unearned premiums	485,488		617,535		466,590
Other	70,851		14,462		19,878
Net cash from operating activities	3,678,368		2,929,238		2,568,604
CASH FLOWS USED IN INVESTING ACTIVITIES:
Proceeds from sale of fixed maturity securities	2,310,746		1,011,195		797,948
Proceeds from sale of equity securities	331,291		318,852		82,319
Distributions from (contributions to) investment funds	134,853		(19,904)		24,623
Proceeds from maturities and prepayments of fixed maturity securities	4,890,572		3,506,903		4,891,179
Purchase of fixed maturity securities	(9,368,703)		(6,664,763)		(8,036,680)
Purchase of equity securities	(207,457)		(80,454)		(340,482)
Real estate purchased	(66,632)		(2,074)		(45,920)

Change in loans receivable	(210,816)		(29,719)		(83,212)
Net additions to property, furniture and equipment	(105,623)		(53,080)		(52,684)
Change in balances due from security brokers	107,280		(33,929)		14,337
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	(2,184,489)		(1,961,964)		(1,891,355)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Net proceeds from issuance of debt	3,105		980		—

Repayment of senior notes and other debt	—		(1,954)		(429,812)
Cash dividends to common stockholders	(531,953)		(501,456)		(235,192)
Purchase of common treasury shares	(303,655)		(537,163)		(94,140)
Other, net	(19,984)		(22,902)		(12,848)
Net cash used in financing activities	(852,487)		(1,062,495)		(771,992)
Net impact on cash due to change in foreign exchange rates	(29,840)		9,070		(24,754)
Net increase (decrease) in cash and cash equivalents	611,552		(86,151)		(119,497)
Cash and cash equivalents at beginning of year	1,363,195		1,449,346		1,568,843
Cash and cash equivalents at end of year	$	1,974,747	$	1,363,195	$	1,449,346

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2024, 2023 and 2022

(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. Shares outstanding and per share amounts have been adjusted to reflect the 3-for-2 common stock split effected on July 10, 2024. Additionally, commencing with the first quarter of 2024, the Company reclassified a program management business from the Insurance segment to the Reinsurance & Monoline Excess segment. The reclassified business is a program management business offering support on a nationwide basis for commercial casualty and property program administrators. Reclassifications have been made in the 2023 and 2022 financial statements as originally reported to conform to the presentation of the 2024 financial statements.

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, $19 million and $25 million in 2024, 2023 and 2022, 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 17,659,297 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 $29 million and $31 million at December 31, 2024 and 2023, 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 $55 million, $51 million and $52 million for 2024, 2023 and 2022, 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, 2024 indicated that there were no material impairment losses related to goodwill and other intangible assets. Intangible assets of $97 million and $119 million are included in other assets as of December 31, 2024 and 2023, respectively.

(O) Restricted stock units

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

(P) Statements of cash flows

Interest payments were $138 million, $114 million and $138 million in 2024, 2023 and 2022, respectively. Income taxes paid were $410 million, $332 million and $295 million in 2024, 2023 and 2022, 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:

In November 2023, the Financial Accounting Standards Board issued ASU 2023-07, Improvements to Reportable Segment Disclosures, which enhances current segment disclosures and requires additional disclosures of significant segment expenses. When applying this disclosure requirement, an entity identifies the significant expenses for each reportable segment that are regularly provided to its chief operating decision maker and included in the reported measures of a segment’s profit or loss. The guidance was effective for public business entities for annual reporting periods beginning after December 15, 2023, and interim reporting periods beginning after December 15, 2024. The Company adopted this guidance for the year ended December 31, 2024.

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

The following tables present the components of the changes in accumulated other comprehensive income (AOCI) as of and for the years ended December 31, 2024 and 2023:


(In thousands)
December 31, 2024	Unrealized Investment Gains (Losses)			Currency Translation Adjustments		Accumulated Other Comprehensive Income (Loss)
Changes in AOCI
Beginning of period	$	(586,354)		$	(339,484)	$	(925,838)


Other comprehensive income (loss) before reclassifications	(26,128)			(77,615)		(103,743)
Amounts reclassified from AOCI	95,310			—		95,310
Other comprehensive income (loss)	69,182			(77,615)		(8,433)
Unrealized investment gain related to noncontrolling interest	2			—		2
Ending balance	$	(517,170)		$	(417,099)	$	(934,269)
Amounts reclassified from AOCI
Pre-tax	$	120,646	(1)	$	—	$	120,646
Tax effect	(25,336)		(2)	—		(25,336)
After-tax amounts reclassified	$	95,310		$	—	$	95,310
Other comprehensive income (loss)
Pre-tax	$	84,474		$	(77,615)	$	6,859
Tax effect	(15,292)			—		(15,292)
Other comprehensive income (loss)	$	69,182		$	(77,615)	$	(8,433)


(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 non-controlling 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

(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, 2024 and 2023, 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, 2024
Held to maturity:
State and municipal	$	42,145		$	(25)	$	1,492	$	—	$	43,612	$	42,120
Residential mortgage-backed	2,292			—		69		—		2,361		2,292

Total held to maturity	44,437			(25)		1,561		—		45,973		44,412
Available for sale:
U.S. government and government agency	2,268,596			—		9,608		(42,863)		2,235,341		2,235,341
State and municipal:
Special revenue	1,581,778			—		3,521		(67,591)		1,517,708		1,517,708
State general obligation	272,936			—		1,439		(8,981)		265,394		265,394
Pre-refunded	85,340			—		599		(347)		85,592		85,592
Corporate backed	158,322			—		1,079		(5,827)		153,574		153,574
Local general obligation	278,165			—		922		(6,711)		272,376		272,376
Total state and municipal	2,376,541			—		7,560		(89,457)		2,294,644		2,294,644
Mortgage-backed securities:
Residential	3,411,796			(5)		11,047		(189,630)		3,233,208		3,233,208
Commercial	534,936			(425)		1,201		(3,430)		532,282		532,282
Total mortgage-backed securities	3,946,732			(430)		12,248		(193,060)		3,765,490		3,765,490
Asset-backed securities	3,910,363			—		16,161		(41,512)		3,885,012		3,885,012
Corporate:
Industrial	3,746,501			—		14,518		(93,820)		3,667,199		3,667,199
Financial	3,339,718			—		18,871		(38,076)		3,320,513		3,320,513
Utilities	795,839			—		2,970		(20,115)		778,694		778,694
Other	653,194			—		2,493		(4,452)		651,235		651,235
Total corporate	8,535,252			—		38,852		(156,463)		8,417,641		8,417,641
Foreign government	1,928,978			(216)		11,936		(185,373)		1,755,325		1,755,325
Total available for sale	22,966,462			(646)		96,365		(708,728)		22,353,453		22,353,453
Total investments in fixed maturity securities	$	23,010,899		$	(671)	$	97,926	$	(708,728)	$	22,399,426	$	22,397,865


(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

——————————

(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, 2024 and 2023:


	State and Municipal
(In thousands)	2024		2023
Allowance for expected credit losses, beginning of period	$	43	$	114

Change in allowance for expected credit losses	(18)		(71)
Allowance for expected credit losses, end of period	$	25	$	43

The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the years ended December 31, 2024 and 2023:


	2024												2023
(In thousands)	Foreign Government		Corporate		Mortgage- Backed		Asset-backed		State and Municipal		Total		Foreign Government		Corporate		Mortgage- Backed		Asset-backed		State and Municipal		Total
Balance, beginning of period	$	29,603	$	5,026	$	158	$	1,164	$	757	$	36,708	$	32,633	$	4,701	$	18	$	—	$	—	$	37,352

Change on securities for which credit losses were not previously recorded	347		—		1,706		—		—		2,053		—		982		1,766		1,444		821		5,013
Change on securities for which credit losses were previously recorded	(29,355)		(5,026)		(831)		(1,164)		(757)		(37,133)		(3,030)		(650)		(1,624)		(280)		(64)		(5,648)
Reduction due to disposals	(379)		—		(603)		—		—		(982)		—		(7)		(2)		—		—		(9)
Balance, end of period	$	216	$	—	$	430	$	—	$	—	$	646	$	29,603	$	5,026	$	158	$	1,164	$	757	$	36,708

During the year ended December 31, 2024, 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, primarily due to improved pricing associated with foreign government securities and corporate securities. 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.

The amortized cost and fair value of fixed maturity securities at December 31, 2024, 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	$	1,744,361	$	1,719,948
Due after one year through five years	9,337,291		9,059,599
Due after five years through ten years	3,966,371		3,902,808
Due after ten years	4,013,827		3,949,220
Mortgage-backed securities	3,949,024		3,767,851
Total	$	23,010,874	$	22,399,426

(1) Amortized cost is reduced by the allowance for expected credit losses of $25 thousand related to held to maturity securities.

At December 31, 2024 and 2023, 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, 2024, investments with a carrying value of $2,167 million were on deposit in custodial or trust accounts, of which $1,223 million was on deposit with insurance regulators, $884 million was on deposit in support of the Company’s underwriting activities at Lloyd’s, $33 million was on deposit as security for reinsurance clients and $27 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, 2024 and 2023, investments in equity securities were as follows:


(In thousands)	Cost			Gross Unrealized				Fair Value		Carrying Value
Gains			Losses
December 31, 2024
Common stocks	$	612,479		$	223,981	$	(76,293)	$	760,167	$	760,167
Preferred stocks	329,495			122,716		(8,590)		443,621		443,621
Total	$	941,974		$	346,697	$	(84,883)	$	1,203,788	$	1,203,788

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

(5) Arbitrage Trading Account

At December 31, 2024 and 2023, the fair value and carrying value of the arbitrage trading account were $1,123 million and $938 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, 2024, the fair value of long option contracts outstanding was $26 million (notional amount of $582 million) and the fair value of short option contracts outstanding was $73 million (notional amount of $582 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)	2024		2023		2022
Investment income (loss) earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	1,260,429	$	929,098	$	549,281
Arbitrage trading account (1)	69,573		69,369		45,213
Equity securities	48,920		55,726		52,600
Investment funds	(11,491)		16,743		145,099
Real estate	(23,616)		(11,185)		(3,087)
Gross investment income	1,343,815		1,059,751		789,106
Investment expense	(10,654)		(6,916)		(9,921)
Net investment income	$	1,333,161	$	1,052,835	$	779,185

(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 $279 million as of December 31, 2024.

Investment funds consist of the following:


	Carrying Value as of December 31,				(Loss) Income From Investment Funds For the Year Ended
(In thousands)	2024		2023		2024		2023		2022
Financial services	$	430,163	$	433,407	$	(39,418)	$	(10,911)	$	34,030
Transportation	286,426		344,278		13,335		40,607		53,180
Real estate	178,685		201,625		12,195		(6,676)		48,723
Infrastructure	151,560		130,589		17,071		13,049		4,603
Energy	42,776		114,794		14,501		5,058		1,425
Other funds	378,636		396,962		(29,175)		(24,384)		3,138
Total	$	1,468,246	$	1,621,655	$	(11,491)	$	16,743	$	145,099

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 share was increased to 30% on July 1, 2022 and was increased to 32.5% effective January 1, 2025. 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, 2024 and 2023, the Company ceded approximately $417 million and $437 million, respectively, of written premiums to Lifson Re.

Other funds include deferred compensation trust assets of $38 million and $36 million in 2024 and 2023, 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)	2024		2023
Properties in operation	$	1,063,687	$	1,022,654
Properties under development	227,768		227,220
Total	$	1,291,455	$	1,249,874

In 2024, properties in operation primarily 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 $38,671,000 and $32,745,000 as of December 31, 2024 and 2023, respectively. Related depreciation expense was $8,633,000 and $8,935,000 for the years ended December 31, 2024 and 2023, respectively. Future minimum rental income expected on operating leases relating to properties in operation is $35,394,421 in 2025, $34,739,030 in 2026, $34,191,439 in 2027, $35,009,348 in 2028, $30,586,197 in 2029 and $426,838,709 thereafter.

A mixed-use project in Washington, D.C. had been under development in 2024 and 2023, with the completed portion as noted above reported in properties in operation as of December 31, 2024.

The Company had commitments to invest up to $48 million in certain real estate investment projects as of December 31, 2024.

(9) Loans Receivable

At December 31, 2024 and 2023, loans receivable were as follows:


	As of December 31,
(In thousands)	2024		2023
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	402,382	$	200,381
Commercial loans	3,071		890
Total	$	405,453	$	201,271

Fair value:
Real estate loans	$	402,177	$	197,354
Commercial loans	3,071		890
Total	$	405,248	$	198,244

The real estate loans are secured by commercial and residential real estate primarily located in the U.K. and New York. These loans generally earn interest at fixed or stepped interest rates and have maturities through 2028. 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 5 years.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the years ended December 31, 2024 and 2023:


	2024						2023
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Allowance for expected credit losses, beginning of period	$	2,983	$	21	$	3,004	$	1,100	$	691	$	1,791
Reduction due to write-offs	—		—		—		—		(569)		(569)
Change in allowance for expected credit losses	(1,895)		5		(1,890)		1,883		(101)		1,782
Allowance for expected credit losses, end of period	$	1,088	$	26	$	1,114	$	2,983	$	21	$	3,004

During the year ended December 31, 2024, the Company decreased the allowance for expected credit losses due to a decrease in the weighted average life of the loan portfolio. 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)	2024		2023		2022
Net investment gains:
Fixed maturity securities:
Gains	$	15,486	$	2,003	$	4,224
Losses	(32,866)		(25,429)		(11,654)
Equity securities (1):
Net realized gains (losses) on investment sales (2)	116,475		161,271		(12,879)
Change in unrealized gains (losses)	120,799		70,448		(632)
Investment funds	1,835		(25,625)		12,407
Real estate (3) (4)	(2,647)		(70,934)		293,525
Loans receivable	—		(18,841)		(32)
Other (5)	(139,344)		(45,353)		(67,648)
Net realized and unrealized gains on investments in earnings before allowance for expected credit losses	79,738		47,540		217,311
Change in allowance for expected credit losses on investments:
Fixed maturity securities	36,080		715		(14,841)
Loans receivable	1,890		(1,213)		(73)
Change in allowance for expected credit losses on investments	37,970		(498)		(14,914)
Net investment gains	117,708		47,042		202,397
Income tax expense	(29,205)		(10,250)		(42,670)
After-tax net investment gains	$	88,503	$	36,792	$	159,727


Change in unrealized investment gains (losses):
Fixed maturity securities without allowance for expected credit losses	$	83,395	$	389,839	$	(1,216,292)
Fixed maturity securities with allowance for expected credit losses	4,428		643		(28,370)

Investment funds	(3,217)		3,989		(2,019)
Other	(132)		(1,568)		(1,447)
Total change in unrealized investment gains (losses)	84,474		392,903		(1,248,128)
Income tax (expense) benefit	(15,292)		(86,350)		264,325
Noncontrolling interests	2		(2)		(2)
After-tax change in unrealized investment gains (losses)	$	69,184	$	306,551	$	(983,805)

(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 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) In 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 (proceeds from the real estate and related entity are presented on the business disposition line within the Consolidated Statements of Cash Flows).

(5) Primarily relates to realized foreign currency losses upon the disposition of fixed maturity securities.

(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, 2024 and 2023 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, 2024
U.S. government and government agency	$	767,515	$	9,637	$	560,260	$	33,226	$	1,327,775	$	42,863
State and municipal	348,116		8,027		1,411,761		81,430		1,759,877		89,457
Mortgage-backed securities	1,541,464		21,326		1,060,823		171,734		2,602,287		193,060
Asset-backed securities	411,763		4,613		626,237		36,899		1,038,000		41,512
Corporate	1,791,970		21,346		2,951,377		135,117		4,743,347		156,463
Foreign government	600,103		17,933		476,479		167,440		1,076,582		185,373
Fixed maturity securities	$	5,460,931	$	82,882	$	7,086,937	$	625,846	$	12,547,868	$	708,728





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

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, 2024 is presented in the table below:


($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Foreign government	50	$	138,388	$	157,424

Corporate	19	50,525		2,922
State and municipal	6	28,150		1,921
Mortgage-backed securities	17	3,684		206
Asset-backed securities	1	9		1
Total	93	$	220,756	$	162,474

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, 2024 and 2023 by level:


(In thousands)	Total		Level 1		Level 2		Level 3
December 31, 2024
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	2,235,341	$	—	$	2,235,341	$	—
State and municipal	2,294,644		—		2,294,644		—
Mortgage-backed securities	3,765,490		—		3,765,490		—
Asset-backed securities	3,885,012		—		3,885,012		—
Corporate	8,417,641		—		8,397,974		19,667
Foreign government	1,755,325		—		1,755,325		—
Total fixed maturity securities available for sale	22,353,453		—		22,333,786		19,667
Equity securities:
Common stocks	760,167		757,115		1,011		2,041
Preferred stocks	443,621		—		439,947		3,674
Total equity securities	1,203,788		757,115		440,958		5,715
Arbitrage trading account	1,122,599		1,062,459		56,630		3,510

Total	$	24,679,840	$	1,819,574	$	22,831,374	$	28,892
Liabilities:
Trading account securities sold but not yet purchased	$	73,358	$	73,358	$	—	$	—

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	$	—	$	—

The following tables summarize changes in Level 3 assets and liabilities for the years ended December 31, 2024 and 2023:


	Gains (Losses) Included in:
(In thousands)	Beginning Balance		Earnings (Losses)		Other Comprehensive Losses		Impairments		Purchases		Sales		Paydowns/Maturities		Transfers In / Out		Ending Balance
Year ended December 31, 2024
Assets:
Fixed maturity securities available for sale:

Corporate	$	—	$	—	$	(333)	$	—	$	—	$	—	$	—	$	20,000	$	19,667
Total	—		—		(333)		—		—		—		—		20,000		19,667
Equity securities:
Common stocks	1,558		611		—		—		—		(128)		—		—		2,041
Preferred stocks	3,695		36		—		—		—		(57)		—		—		3,674
Total	5,253		647		—		—		—		(185)		—		—		5,715
Arbitrage trading account	3,772		(261)		—		—		—		(38)		—		37		3,510
Total	$	9,025	$	386	$	(333)	$	—	$	—	$	(223)	$	—	$	20,037	$	28,892



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

For the year ended December 31, 2024, one corporate security was transferred into level 3 from level 2 given there were no quoted prices or observable inputs available. For the years ended December 31, 2024 and 2023, one security in each year within the arbitrage trading account portfolio that no longer had a publicly traded price was transferred into 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, 2024, 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 2023 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, 2024 exchange rate for all periods.

Insurance

Other Liability

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2024
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	934,138	$	969,246	$	944,351	$	948,706	$	951,981	$	963,118	$	969,789	$	999,316	$	1,005,801	$	1,019,173	$	32,718	28
2016			1,003,192		995,148		1,005,560		1,018,025		1,032,281		1,048,121		1,079,436		1,121,260		1,122,233		59,052		29
2017					1,055,253		1,088,787		1,111,550		1,129,392		1,169,138		1,238,759		1,256,832		1,289,349		79,218		28
2018							1,095,529		1,123,152		1,113,675		1,148,972		1,225,588		1,291,745		1,374,348		98,378		28
2019									1,232,661		1,228,679		1,230,016		1,286,835		1,362,171		1,396,012		139,046		30
2020											1,330,660		1,204,248		1,148,852		1,157,392		1,187,560		181,892		24
2021													1,522,682		1,378,751		1,332,486		1,352,616		285,076		26
2022															1,810,560		1,815,653		1,798,403		688,730		28
2023																	2,111,178		2,075,065		1,312,841		25
2024																			2,379,621		2,070,647		18
Total																			$	14,994,380


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	80,079	$	205,207	$	374,666	$	528,935	$	665,272	$	745,994	$	804,340	$	862,557	$	916,787	$	948,434
2016			67,290		203,890		383,909		550,589		667,761		757,110		860,423		944,014		996,649
2017					77,719		251,172		447,743		632,721		767,665		922,090		1,038,695		1,119,123
2018							85,148		261,789		432,148		611,323		801,409		979,311		1,122,768
2019									86,531		271,854		467,267		699,906		902,686		1,073,894
2020											70,540		222,274		417,860		614,351		812,453
2021													75,101		265,080		484,588		794,392
2022															92,248		352,886		704,307
2023																	91,733		366,496
2024																			95,137
Total																			$	8,033,653
	Reserves for loss and loss adjustment expenses before 2015, net of reinsurance																		178,312
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	7,139,039

Workers' Compensation

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2024
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	712,800	$	690,525	$	650,997	$	641,169	$	626,432	$	620,741	$	617,477	$	612,687	$	603,731	$	604,806	$	14,681	58
2016			702,716		696,339		684,700		660,520		651,278		657,972		654,385		641,549		639,412		15,340		58
2017					762,093		733,505		689,622		673,216		683,880		682,153		675,871		669,988		15,800		58
2018							778,964		724,697		715,055		724,056		721,170		715,018		708,336		14,769		56
2019									784,281		721,018		732,762		734,034		722,456		714,086		18,751		54
2020											725,245		716,430		704,008		668,222		652,424		12,026		42
2021													742,687		701,703		667,517		649,222		22,916		46
2022															772,620		745,218		715,578		56,385		46
2023																	784,906		758,657		146,880		45
2024																			811,614		378,116		46
Total																			$	6,924,123


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	139,320	$	323,744	$	421,734	$	477,541	$	512,933	$	531,512	$	544,849	$	557,215	$	564,658	$	570,125
2016			142,998		338,835		446,072		504,850		537,861		558,934		572,669		584,330		591,005
2017					153,456		362,299		468,817		525,753		559,198		583,258		603,006		617,243
2018							171,006		397,464		508,546		574,889		613,675		642,292		660,237
2019									184,715		397,376		515,914		581,003		618,324		644,772
2020											172,478		380,454		485,203		548,585		579,332
2021													172,729		384,867		490,648		547,863
2022															180,982		408,929		527,145
2023																	195,204		418,788
2024																			196,104
Total																			$	5,352,614
			Reserves for loss and loss adjustment expenses before 2015, net of reinsurance																246,975
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,818,484

Professional Liability

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2024
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	256,877	$	255,638	$	272,360	$	274,229	$	289,722	$	281,461	$	281,906	$	286,203	$	285,591	$	285,252	$	11,809	8
2016			307,902		322,107		359,228		400,178		437,690		467,183		462,868		449,033		452,769		15,280		10
2017					331,362		330,753		337,256		376,096		383,246		392,447		401,170		401,789		26,447		11
2018							333,254		320,784		332,201		358,676		381,613		397,102		393,029		59,723		11
2019									334,137		330,146		344,036		353,131		362,333		364,231		62,324		12
2020											391,532		373,550		336,231		312,169		299,806		56,121		11
2021													521,744		468,567		444,060		408,536		119,166		12
2022															644,950		582,764		553,174		307,294		12
2023																	642,582		634,269		404,820		13
2024																			648,064		499,645		13
Total																			$	4,440,919


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	20,271	$	85,061	$	139,244	$	186,834	$	215,640	$	232,187	$	239,162	$	246,160	$	258,640	$	265,643
2016			28,432		102,079		200,949		254,694		296,742		356,717		404,669		412,243		421,639
2017					36,381		96,025		162,469		242,696		260,764		306,270		329,021		349,406
2018							28,072		99,433		154,953		198,351		243,813		283,349		315,361
2019									31,563		97,082		147,500		199,942		234,789		270,623
2020											27,895		79,968		128,579		168,670		196,332
2021													28,465		85,661		152,764		219,932
2022															33,336		90,416		160,965
2023																	40,973		121,991
2024																			40,200
Total																			$	2,362,092
	Reserves for loss and loss adjustment expenses before 2015, net of reinsurance																		49,908
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	2,128,735

Auto

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2024
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	374,801	$	398,090	$	403,449	$	411,886	$	412,416	$	410,762	$	407,874	$	409,797	$	409,329	$	410,218	$	784	50
2016			414,205		415,208		425,808		426,365		423,216		423,171		425,063		426,814		425,280		1,648		48
2017					412,917		410,409		412,760		417,010		423,180		427,474		428,064		429,646		2,931		44
2018							423,120		443,203		459,826		474,469		502,221		511,283		513,458		5,358		43
2019									462,866		465,817		483,438		508,501		525,110		532,292		9,383		43
2020											493,527		396,616		407,515		433,980		440,625		5,170		29
2021													552,002		517,233		552,219		583,693		26,200		35
2022															723,266		740,688		763,806		83,225		41
2023																	890,682		907,503		226,458		43
2024																			1,062,427		569,636		41
Total																			$	6,068,948


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	155,699	$	255,990	$	310,923	$	353,772	$	379,779	$	392,093	$	397,747	$	401,130	$	402,938	$	405,009
2016			178,350		270,304		330,222		375,891		394,720		404,241		412,624		418,672		421,309
2017					173,668		256,952		314,336		356,864		385,822		403,421		414,033		421,898
2018							173,779		272,020		337,599		397,517		445,527		479,144		493,942
2019									179,847		279,858		360,921		423,225		473,940		499,996
2020											136,899		213,638		285,875		346,892		402,177
2021													168,497		289,016		379,966		476,462
2022															237,885		394,136		531,324
2023																	271,552		467,227
2024																			295,450
Total																			$	4,414,794
			Reserves for loss and loss adjustment expenses before 2015, net of reinsurance																2,295
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,656,449

Short-tail lines

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2024
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	718,877	$	708,711	$	705,938	$	704,501	$	697,123	$	695,584	$	693,963	$	694,284	$	699,018	$	697,949	$	1,485	29
2016			752,238		756,684		744,208		738,577		732,853		735,299		733,993		734,306		732,544		1,814		31
2017					730,239		729,675		723,989		722,967		722,697		723,925		722,551		722,138		2,262		39
2018							741,002		731,643		728,426		726,956		724,399		723,401		718,987		4,803		46
2019									703,177		684,671		674,717		668,632		668,628		658,367		4,744		41
2020											882,508		887,821		905,858		909,800		912,987		3,715		36
2021													805,048		809,924		793,394		790,478		11,207		33
2022															904,554		889,173		880,040		25,611		31
2023																	1,035,378		997,176		66,732		28
2024																			1,254,576		450,792		24
Total																			$	8,365,242


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	380,892	$	592,871	$	647,710	$	669,556	$	678,891	$	684,679	$	691,365	$	691,545	$	700,792	$	702,432
2016			403,529		652,336		693,535		708,340		713,193		719,883		720,716		725,721		727,943
2017					429,132		667,750		695,566		707,472		710,624		717,788		723,111		725,516
2018							401,547		645,228		691,499		708,449		707,471		712,526		715,238
2019									392,083		600,257		629,427		641,809		649,886		651,960
2020											447,105		768,617		829,586		884,460		888,746
2021													388,917		677,015		732,996		755,877
2022															440,856		761,924		827,552
2023																	531,838		846,828
2024																			559,186
Total																			$	7,401,278
	Reserves for loss and loss adjustment expenses before 2015, net of reinsurance																		5,937
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	969,901

Reinsurance & Monoline Excess

Casualty

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2024
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		IBNR
2015	$	285,491	$	261,479	$	260,696	$	281,470	$	321,934	$	331,370	$	333,368	$	335,541	$	336,653	$	346,178	$	9,461
2016			265,059		277,255		269,643		292,188		325,777		325,590		332,538		328,079		332,140		12,449
2017					255,303		245,631		263,327		285,053		304,542		320,518		334,003		344,072		19,683
2018							245,491		235,054		254,696		270,699		282,547		310,129		327,489		26,167
2019									260,178		257,452		264,664		265,001		294,105		315,025		35,101
2020											333,743		329,319		327,257		346,355		345,540		62,760
2021													425,922		428,105		421,190		423,874		118,203
2022															488,982		501,517		474,466		208,624
2023																	472,810		466,192		305,158
2024																			429,455		382,444
Total																			$	3,804,431


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	24,672	$	61,106	$	110,230	$	163,728	$	203,940	$	232,001	$	260,577	$	278,540	$	295,608	$	308,837
2016			26,599		73,546		115,017		159,651		193,167		228,163		249,017		267,375		279,490
2017					25,295		54,395		86,509		143,838		169,379		198,517		233,096		269,239
2018							18,921		52,668		93,211		128,691		163,823		207,435		245,037
2019									21,506		52,609		81,222		116,579		170,169		219,777
2020											28,291		66,937		109,396		171,527		217,958
2021													24,649		76,977		145,859		211,884
2022															28,029		83,590		159,100
2023																	17,622		66,568
2024																			16,794
Total																			$	1,994,684
	Reserves for loss and loss adjustment expenses before 2015, net of reinsurance																		357,939
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	2,167,686

Monoline Excess

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2024
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		IBNR
2015	$	69,977	$	57,897	$	50,099	$	45,115	$	39,682	$	39,781	$	36,774	$	32,604	$	33,590	$	28,220	$	5,749
2016			72,657		70,281		71,404		64,957		65,485		65,222		63,932		59,804		55,371		5,800
2017					76,701		80,508		70,749		71,025		66,795		65,147		62,213		57,073		8,242
2018							77,820		72,505		71,448		66,180		60,347		58,244		54,784		14,257
2019									78,929		77,482		76,242		76,478		73,571		70,929		13,613
2020											84,354		83,468		82,952		80,946		70,219		23,018
2021													98,110		90,980		89,220		84,681		27,325
2022															128,923		101,725		100,612		26,481
2023																	110,446		86,901		41,059
2024																			120,046		98,632
Total																			$	728,836


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	2,069	$	2,481	$	3,272	$	4,099	$	4,416	$	5,083	$	5,421	$	6,457	$	6,844	$	7,402
2016			2,498		4,783		5,573		5,928		7,685		9,883		11,819		13,569		16,872
2017					6,282		12,810		15,356		17,327		18,375		19,275		21,275		23,523
2018							6,141		8,230		9,368		10,359		12,414		13,583		14,952
2019									6,241		10,884		12,728		15,436		18,836		21,094
2020											4,869		8,699		10,471		12,869		15,427
2021													4,586		6,026		8,872		11,412
2022															5,898		10,564		17,778
2023																	6,390		12,471
2024																			5,723
Total																			$	146,654
	Reserves for loss and loss adjustment expenses before 2015, net of reinsurance																		577,639
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	1,159,821

Property

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2024
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024		IBNR
2015	$	141,484	$	132,570	$	146,437	$	145,422	$	144,486	$	146,140	$	145,697	$	146,346	$	146,893	$	146,485	$	444
2016			185,533		191,947		198,909		198,523		204,004		201,996		203,070		204,190		203,198		781
2017					227,950		223,315		222,463		221,413		215,295		215,723		216,854		215,714		347
2018							125,574		128,611		120,284		121,985		120,254		118,633		117,569		918
2019									119,838		93,038		97,748		96,681		96,575		95,708		1,282
2020											131,649		133,897		132,670		137,504		136,155		844
2021													156,046		168,265		165,760		161,699		2,766
2022															205,886		205,569		202,600		24,379
2023																	176,457		172,995		37,096
2024																			255,770		137,881
Total																			$	1,707,893


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		2023		2024
2015	$	64,495	$	103,634	$	123,995	$	133,605	$	137,708	$	140,564	$	141,963	$	143,103	$	143,999	$	144,369
2016			91,514		150,326		174,449		185,937		193,595		195,736		200,070		201,985		202,409
2017					87,892		162,814		194,150		202,436		206,018		209,232		211,837		212,577
2018							46,892		80,976		98,416		103,833		112,061		113,418		114,035
2019									35,563		69,694		83,990		86,633		88,628		90,550
2020											39,652		81,238		102,593		111,508		118,503
2021													31,624		92,579		130,371		145,315
2022															56,483		128,640		152,174
2023																	58,316		110,095
2024																			69,379
Total																			$	1,359,406
	Reserves for loss and loss adjustment expenses before 2015, net of reinsurance																		1,971
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	350,458

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, 2024
Undiscounted reserves for loss and loss expenses, net of reinsurance:
	Other liability	$	7,139,039
	Workers' compensation	1,818,484
	Professional liability	2,128,735
	Auto	1,656,449
	Short-tail lines	969,901
	Other	180,628
	Insurance	13,893,236
	Casualty	2,167,686
	Monoline excess	1,159,821
	Property	350,458
	Reinsurance & Monoline Excess	3,677,965
Total undiscounted reserves for loss and loss expenses, net of reinsurance		$	17,571,201


(In thousands)		December 31, 2024
Due from reinsurers on unpaid claims:
	Other liability	$	1,044,974
	Workers' compensation	175,244
	Professional liability	1,148,320
	Auto	82,331
	Short-tail lines	434,368
	Other	121,010
	Insurance	3,006,247
	Casualty	104,928
	Monoline excess	36,042
	Property	54,172
	Reinsurance & Monoline Excess	195,142
Total due from reinsurers on unpaid claims		$	3,201,389


(In thousands)		December 31, 2024
Loss reserve discount:
	Other liability	$	—
	Workers' compensation	(11,662)
	Professional liability	—
	Auto	—
	Short-tail lines	—
	Other	—
	Insurance	(11,662)
	Casualty	(68,788)
	Monoline excess	(324,110)
	Property	—
	Reinsurance & Monoline Excess	(392,898)
Total loss reserve discount		$	(404,560)
Total gross reserves for loss and loss expenses		$	20,368,030

The following is supplementary information regarding average historical claims duration as of December 31, 2024:


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	5.7	%	13.2	%	15.8	%	16.2	%	13.2	%	10.6	%	8.6	%	6.5	%	5.0	%	3.1	%
Workers' compensation	24.7	%	31.1	%	16.3	%	9.1	%	5.2	%	3.5	%	2.5	%	2.0	%	1.1	%	0.9	%
Professional liability	7.3	%	16.0	%	16.3	%	14.8	%	9.0	%	10.1	%	6.7	%	3.1	%	3.2	%	2.5	%
Auto	33.7	%	20.4	%	14.8	%	12.1	%	8.2	%	4.2	%	2.2	%	1.4	%	0.5	%	0.5	%
Short-tail lines	53.1	%	33.6	%	6.2	%	2.8	%	0.7	%	0.8	%	0.5	%	0.3	%	0.8	%	0.2	%

Reinsurance & Monoline Excess
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1		2		3		4		5		6		7		8		9		10
Casualty	6.3	%	11.0	%	12.7	%	14.5	%	11.7	%	11.2	%	9.0	%	7.1	%	4.3	%	3.8	%
Monoline excess	7.3	%	5.1	%	3.3	%	2.7	%	3.1	%	2.6	%	2.7	%	3.6	%	3.7	%	2.0	%
Property	34.4	%	32.1	%	15.1	%	5.6	%	3.7	%	1.5	%	1.2	%	0.7	%	0.4	%	0.3	%

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


(In thousands)	2024		2023		2022
Net reserves at beginning of year	$	15,661,820	$	14,248,879	$	12,848,362


Net provision for losses and loss expenses:
Claims occurring during the current year (1)	7,083,999		6,311,780		5,774,713
Increase in estimates for claims occurring in prior years (2)	14,350		29,681		54,511
Loss reserve discount accretion	33,246		30,681		32,526
Total	7,131,595		6,372,142		5,861,750
Net payments for claims:
Current year	1,278,585		1,217,078		1,068,577
Prior year	4,205,845		3,764,532		3,279,333
Total	5,484,430		4,981,610		4,347,910
Foreign currency translation	(142,344)		22,409		(113,323)
Net reserves at end of year	17,166,641		15,661,820		14,248,879
Ceded reserve at end of year	3,201,389		3,077,832		2,762,344
Gross reserves at end of year	$	20,368,030	$	18,739,652	$	17,011,223

Net change in premiums and losses occurring in prior years:
Increase in estimates for claims occurring in prior years (2)	$	(14,350)	$	(29,681)	$	(54,511)
Retrospective premium adjustments for claims occurring in prior years (3)	18,782		10,782		18,106
Net premium and reserve development on prior years	$	4,432	$	(18,899)	$	(36,405)

(1)Claims occurring during the current year are net of loss reserve discounts of $49 million, $47 million and $35 million in 2024, 2023, and 2022, respectively.

(2)The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years increased by $13 million in 2024, decreased by $13 million in 2023, and increased by $16 million in 2022.

(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 ultimate net impact of COVID-19 on the Company’s reserves remains uncertain. As of December 31, 2024, the Company had recognized losses for COVID-19-related claims activity, net of reinsurance, of approximately $381 million, of which $326 million relates to the Insurance segment and $55 million relates to the Reinsurance & Monoline Excess segment. Such $381 million of COVID-19-related losses included $379 million of reported losses and $2 million of IBNR.

Favorable prior year development (net of additional and return premiums) was $4 million in 2024.

Insurance – Reserves for the Insurance segment developed unfavorably by $8 million in 2024 (net of additional and return premiums). The adverse development was driven by the commercial auto liability and other liability occurrence lines of business, and was largely offset by favorable development for workers’ compensation, professional liability, products liability, and commercial property lines of business.

The adverse commercial auto liability development was concentrated in accident years 2021 through 2023, while the adverse other liability occurrence development was focused across accident years 2015 through 2022. The majority of the other liability occurrence development was driven by umbrella and excess liability claims, of which a significant portion related to underlying commercial auto exposures. The Company believes that commercial auto-related claims are being particularly impacted by social inflation, which is contributing to an increase in the frequency of large losses beyond expectations. Social inflation can include higher settlement demands from plaintiffs, use of aggressive actions by the plaintiffs’ bar such as litigation funding, negative public sentiment towards large businesses and corporations, and erosion of tort reforms, among other factors.

The favorable workers’ compensation development for the Insurance segment was mainly related to accident years 2016 through 2023, with accident years 2020 through 2023 contributing the most. For workers’ compensation, favorable reported claim frequency, below expectations, continued to be the main driver of the favorable reserve development. The

favorable development for both the professional liability and products liability lines of business was related mainly to accident years 2020 through 2023. For both of these lines, reported claim frequency and incurred losses for accident years 2020 through 2023 were better than expected, which drove the favorable reserve development. Business written in these years also benefitted from significant price increases, which the Company now believes will result in higher profitability than initially anticipated. The favorable development for commercial property was mainly associated with the 2023 accident year, and resulted from better than expected settlements for both catastrophe related and non-catastrophe claims.

Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed favorably by $12 million in 2024 (net of additional and return premiums). The favorable development was driven mainly by excess workers’ compensation business, partially offset by adverse development in the non-proportional reinsurance assumed liability line of business. The favorable excess workers’ compensation development was driven by continued lower claim frequency and reported losses relative to expectations, and favorable claim settlements spread across many prior accident years. The unfavorable development for non-proportional reinsurance was concentrated mainly in accident years 2015 through 2019 and was associated primarily with our U.S. and U.K. excess general liability reinsurance businesses, including coverage for cedants insuring construction projects.

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

Insurance – Reserves for the Insurance segment developed unfavorably by $21 million in 2023 (net of additional and return premiums). The unfavorable development for the segment was concentrated in the early part of the year. A key driver of the unfavorable development early in 2023 was property catastrophe losses related to 2022 events which were still being adjusted and settled during the early part of 2023. In particular, losses related to U.S. winter storms which occurred during the month of December 2022 were a significant contributor to the development, as information gathering and evaluation of many of these claims were still ongoing into the new year.

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 $2 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, excess general liability (including umbrella), and commercial auto liability 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. The unfavorable development for commercial auto liability was concentrated in the 2022 accident year and related to commercial auto program business.

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

Insurance – Reserves for the Insurance segment developed unfavorably by $41 million in 2022 (net of additional and return premiums). The unfavorable development in the segment primarily related to COVID-19 losses at two businesses. These businesses wrote policies providing coverage for event cancellation and film production delay which were heavily impacted by losses directly caused by the COVID-19 pandemic. Most of this COVID-19 related unfavorable development emerged during the third quarter as a result of settlements of claims at values higher than our expectations. However, the Company believes that

as a result of these settlements the remaining level of uncertainty around the ultimate value of its known COVID-19 claims has been significantly reduced.

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

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

Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed favorably by $5 million in 2022 (net of additional and return premiums). The overall favorable development for the segment was driven mainly by favorable development in excess workers compensation, substantially offset by unfavorable development in the professional liability, non-proportional reinsurance assumed liability, and commercial auto liability lines of business. The favorable excess workers’ compensation development was spread across most prior accident years, including 2012 and prior years, and was driven by a review of the Company’s claim reporting patterns as well as a number of favorable claim settlements relative to expectations. The unfavorable professional liability and non-proportional reinsurance assumed liability development was concentrated mainly in accident years 2016 through 2018 and was associated primarily with our U.S. assumed reinsurance business and related to accounts insuring construction projects and professional liability exposures. The unfavorable development for commercial auto liability was concentrated in the 2021 accident year and related to commercial auto program business.

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 $16 million and $17 million at December 31, 2024 and 2023, 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 $1,358 million and $1,352 million at December 31, 2024 and 2023, respectively. The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $405 million and $390 million at December 31, 2024 and 2023, respectively. At December 31, 2024, discount rates by year ranged from 0.7% to 6.5%, with a weighted average discount rate of 3.6%.

Substantially all discounted workers’ compensation reserves (97% of total discounted reserves at December 31, 2024) are excess workers’ compensation reserves. 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, 2024), 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)	2024		2023		2022
Written premiums:
Direct	$	12,904,893	$	11,676,743	$	10,695,138
Assumed	1,306,198		1,295,263		1,213,914
Ceded	(2,238,995)		(2,017,539)		(1,904,982)
Total net written premiums	$	11,972,096	$	10,954,467	$	10,004,070

Earned premiums:
Direct	$	12,346,924	$	11,112,980	$	10,217,891
Assumed	1,364,774		1,246,288		1,226,801
Ceded	(2,163,213)		(1,958,581)		(1,883,263)
Total net earned premiums	$	11,548,485	$	10,400,687	$	9,561,429

Ceded losses and loss expenses incurred	$	1,368,279	$	1,376,144	$	1,269,338
Ceded commission earned	$	505,753	$	471,841	$	477,437

The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the years ended December 31, 2024 and 2023:


(In thousands)	2024		2023
Allowance for expected credit losses, beginning of period	$	35,110	$	30,660

Change in allowance for expected credit losses	4,774		4,450
Allowance for expected credit losses, end of period	$	39,884	$	35,110

The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the years ended December 31, 2024 and 2023:


(In thousands)	2024		2023
Allowance for expected credit losses, beginning of period	$	8,404	$	8,064

Change in allowance for expected credit losses	(54)		340
Allowance for expected credit losses, end of period	$	8,350	$	8,404

The following table presents the amounts due from reinsurers as of December 31, 2024:


(In thousands)

Lifson Re	$	416,509
Lloyd’s of London	356,338
Partner Re	314,891
Munich Re	287,864
Berkshire Hathaway	274,182
Hannover Re Group	222,719
Renaissance Re	215,300
Swiss Re	159,462
Liberty Mutual	120,381
Everest Re	93,223
Axis Capital	83,756
Arch Capital Group	67,357
Sompo Holdings Group	59,074
Fairfax Financial	58,585
Nationwide Group	52,111
Korean Re	51,233
Axa Insurance	50,002
TOA RE	47,501
Markel Corp Group	42,982
MS & AD Insurance Group	34,680
Helvetia Holdings Group	29,490
Chubb Group	26,708
Other reinsurers less than $20,000	380,775
Subtotal	3,445,123
Residual market pools (1)	120,922
Allowance for expected credit losses	(8,350)
Total	$	3,557,695

(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, 2024 (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		2024		2023
Senior notes and other debt due on:



February 15, 2037	6.250%	$	250,000	$	248,666	$	248,556
August 1, 2044	4.750%	350,000		346,389		346,205
May 12, 2050	4.000%	470,000		489,207		489,964
March 30, 2052	3.550%	400,000		394,609		394,411
September 30, 2061	3.150%	350,000		343,314		343,129

Subsidiary debt and other (1)	Various	8,973		8,973		5,686
Total senior notes and other debt		$	1,828,973	$	1,831,158	$	1,827,951
Subordinated debentures due on:



March 30, 2058	5.700%	$	185,000	$	179,650	$	179,489
December 30, 2059	5.100%	300,000		291,656		291,418
September 30, 2060	4.250%	250,000		244,813		244,668
March 30, 2061	4.125%	300,000		293,689		293,515
Total subordinated debentures		$	1,035,000	$	1,009,808	$	1,009,090

(1) Subsidiary debt of $9.4 million is due in 2025, partially offset by the unamortized cost of $0.4 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, 2024, there were no borrowings outstanding under the facility.

(16) Income Taxes

Income tax expense (benefit) consists of:


(In thousands)	Current Expense		Deferred Expense (Benefit)		Total
December 31, 2024
Domestic	$	344,210	$	51,754	$	395,964
Foreign	69,312		44,640		113,952
Total expense	$	413,522	$	96,394	$	509,916

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

Income before income taxes from domestic operations was $1,840 million, $1,430 million and $1,240 million for the years ended December 31, 2024, 2023 and 2022, respectively. Income before income taxes from foreign operations was $424 million, $324 million and $480 million for the years ended December 31, 2024, 2023 and 2022, respectively.

A reconciliation of the income tax expense and the amounts computed by applying the Federal and foreign income tax rate of 21% for 2024, 2023 and 2022 to pre-tax income are as follows:


(In thousands)	2024		2023		2022
Computed “expected” tax expense	$	475,543	$	368,425	$	361,133
Tax-exempt investment income	(7,110)		(8,361)		(10,815)
Change in valuation allowance	(220)		(10,883)		(28,064)
Impact of foreign operations and related tax rates	19,317		(1,896)		(3,444)
State and local taxes, net of federal benefit	12,329		12,271		8,976

Other, net	10,057		11,001		6,941
Total expense	$	509,916	$	370,557	$	334,727

At December 31, 2024 and 2023, 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)	2024		2023
Deferred tax asset:
Loss reserve discounting	$	218,222	$	230,956
Unearned premiums	216,721		200,938
Unrealized investment losses	58,701		126,693
Net operating losses & foreign tax credits	62,159		59,154
Other-than-temporary impairments	7,149		12,691
Employee compensation plans	70,529		68,062
Other	81,915		78,025
Gross deferred tax asset	715,396		776,519
Less valuation allowance	(36,063)		(36,283)
Deferred tax asset	679,333		740,236
Deferred tax liability:
Amortization of intangibles	15,124		15,205
Loss reserve discounting - transition rule	4,944		9,894
Deferred policy acquisition costs	195,150		176,281

Property, furniture and equipment	45,276		43,501
Investment funds	184,899		161,867
Other	78,874		66,525
Deferred tax liability	524,267		473,273
Net deferred tax asset	$	155,066	$	266,963

The Company had a net current tax payable of $14 million and $46 million at December 31, 2024 and 2023, respectively. At December 31, 2024, the Company had foreign net operating loss carryforwards of $196 million that have no expiration date. At both December 31, 2024 and 2023, the Company had a valuation allowance of $36 million. The Company has provided a valuation allowance against the utilization of $13 million of foreign tax credits and the future net operating loss carryforward benefits of $23 million for 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, 2020.

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 Company has not provided U.S. deferred income taxes on the undistributed earnings of approximately $481 million of its non-U.S. subsidiaries since these earnings are intended to be permanently reinvested in the non-U.S. subsidiaries. In the future, if such earnings were distributed the Company projects that the incremental tax, if any, will be immaterial.

(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 2025, the maximum amount of dividends that can be paid by BIC without such approval is approximately $1.6 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)	2024		2023		2022
Net income	$	1,624,686	$	1,176,255	$	1,358,813
Statutory capital and surplus	$	9,421,874	$	8,776,138	$	8,330,587

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 $163 million at December 31, 2024*.*

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, 2024, BIC’s Total Adjusted Capital of $9.3 billion was 411% 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)	2024	2023	2022
Basic	399,734	406,500	415,278
Diluted	403,224	409,948	419,192

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 17,659,297 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).


	2024	2023	2022
Balance, beginning of year	384,817,136	396,819,150	397,756,323
Shares issued	951,930	1,059,500	1,118,418
Shares repurchased	(5,702,996)	(13,061,514)	(2,055,591)
Balance, end of year	380,066,070	384,817,136	396,819,150

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, 2024 and 2023:


	2024				2023
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	22,397,865	$	22,399,426	$	20,178,308	$	20,181,547
Equity securities	1,203,788		1,203,788		1,090,347		1,090,347
Arbitrage trading account	1,122,599		1,122,599		938,049		938,049
Loans receivable	405,453		405,248		201,271		198,244
Cash and cash equivalents	1,974,747		1,974,747		1,363,195		1,363,195
Trading accounts receivable from brokers and clearing organizations	60,327		60,327		303,614		303,614
Due from broker	—		—		36,747		36,747

Liabilities:
Due to broker	70,483		70,483		—		—
Trading account securities sold but not yet purchased	73,358		73,358		9,357		9,357
Senior notes and other debt	1,831,158		1,425,852		1,827,951		1,480,076
Subordinated debentures	1,009,808		805,864		1,009,090		929,598

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, 2024, the Company had commitments to invest up to $279 million and $48 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)	2024	2023
Leases:
Lease cost		$	45,718	$	44,256
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows		$	49,441	$	49,910
Right-of-use assets obtained in exchange for new lease liabilities		$	43,624	$	53,753


	As of December 31,
($ in thousands)	2024			2023
Right-of-use assets	$	180,035		$	176,496
Lease liabilities	$	218,397		$	218,621
Weighted-average remaining lease term	7.2 years			7.3 years
Weighted-average discount rate	5.59		%	5.10		%

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


(In thousands)	December 31, 2024
Contractual Maturities:
2025	$	48,822
2026	41,861
2027	32,775
2028	30,550
2029	27,374
Thereafter	81,980
Total undiscounted future minimum lease payments	263,362
Less: Discount impact	44,965
Total lease liability	$	218,397

(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, 2024:


	2024	2023	2022
RSUs granted and unvested at beginning of period:	6,435,267	6,927,639	7,716,779
Granted	1,217,056	1,647,690	1,537,440
Vested	(1,594,183)	(1,726,956)	(1,888,020)
Canceled	(323,743)	(413,106)	(438,560)
RSUs granted and unvested at end of period:	5,734,397	6,435,267	6,927,639

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, 2024, 17,589,942 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, 2024:


(In thousands)	2024		2023		2022
Unearned compensation at beginning of year	$	148,080	$	142,060	$	135,535
RSUs granted, net of cancellations	63,347		62,418		60,628
RSUs expensed	(52,380)		(49,200)		(47,611)
RSUs forfeitures	(5,718)		(7,198)		(6,492)
Unearned compensation at end of year	$	153,329	$	148,080	$	142,060

(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 $72 million, $75 million and $62 million in 2024, 2023 and 2022, 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, 2024:


	Units Outstanding	Maximum Value		Inception to date earned through December 31, 2024 on outstanding units
2020 grant	196,500	$	19,650,000	$	19,650,000
2021 grant	206,000	20,600,000		20,600,000
2022 grant	227,750	22,775,000		20,169,540
2023 grant	241,000	24,100,000		12,466,473
2024 grant	253,750	25,375,000		6,476,304

The following table summarizes the LTIP expense for each of the three years ended December 31, 2024:


(In thousands)	2024		2023		2022




2018 grant	$	—	$	(125)	$	4,299
2019 grant	—		3,366		6,904
2020 grant	135		7,047		6,653
2021 grant	3,543		6,561		6,574
2022 grant	8,167		6,155		6,232
2023 grant	7,076		5,424		—
2024 grant	6,476		—		—
Total	$	25,397	$	28,428	$	30,662

(24) Supplemental Financial Statement Data

Other operating costs and expenses consist of the following:


(In thousands)	2024		2023		2022
Amortization of deferred policy acquisition costs	$	1,219,849	$	1,038,975	$	1,038,903
Insurance operating expenses	2,075,053		1,915,711		1,635,000
Insurance service expenses	90,640		91,714		96,419
Net foreign currency (gains) losses	(52,376)		31,799		(50,930)

Other costs and expenses	269,140		285,737		242,113
Total	$	3,602,306	$	3,363,936	$	2,961,505

(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 and certain program management business.

The Company's chief operating decision maker ("CODM") is the President and Chief Executive Officer. The CODM assesses performance, makes decisions and allocates resources for each of the three reportable segments based on their contribution towards the Company's profitability and balance sheet strength. Certain key metrics such as combined ratio and return on allocated capital for the Insurance and Reinsurance & Monoline Excess segments, as well as Corporate segment expenditures, are examples of key components of the assessment, decision-making and resource-allocation process.

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								Expenses
(In thousands)	Earned Premiums (1)		Investment Income		Other		Total (2)		Losses and Loss Expenses		Policy Acquisition and Insurance Operating Expenses		Other		Total		Pre-Tax Income (Loss)		Net Income (Loss) to Common Stockholders
Year ended December 31, 2024
Insurance	$	10,086,308	$	1,057,738	$	37,455	$	11,181,501	$	6,332,490	$	2,863,697	$	43,231	$	9,239,418	$	1,942,083	$	1,503,875
Reinsurance & Monoline Excess	1,462,177		234,728		—		1,696,905		799,105		431,205		—		1,230,310		466,595		367,569
Corporate, other and eliminations (3)	—		40,695		601,943		642,638		—		—		904,531		904,531		(261,893)		(203,832)
Net investment gains	—		—		117,708		117,708		—		—		—		—		117,708		88,503
Consolidated	$	11,548,485	$	1,333,161	$	757,106	$	13,638,752	$	7,131,595	$	3,294,902	$	947,762	$	11,374,259	$	2,264,493	$	1,756,115

Year ended December 31, 2023
Insurance	$	9,007,376	$	783,660	$	36,830	$	9,827,866	$	5,615,526	$	2,545,310	$	37,112	$	8,197,948	$	1,629,918	$	1,283,281
Reinsurance & Monoline Excess	1,393,311		221,966		—		1,615,277		756,616		409,376		—		1,165,992		449,285		355,155
Corporate, other and eliminations (3)	—		47,209		605,544		652,753		—		—		1,024,595		1,024,595		(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	$	6,372,142	$	2,954,686	$	1,061,707	$	10,388,535	$	1,754,403	$	1,381,359

Year ended December 31, 2022
Insurance	$	8,171,828	$	543,844	$	33,347	$	8,749,019	$	5,013,614	$	2,268,649	$	31,294	$	7,313,557	$	1,435,462	$	1,153,231
Reinsurance & Monoline Excess	1,389,601		200,512		—		1,590,113		848,136		405,254		—		1,253,390		336,723		271,580
Corporate, other and eliminations (3)	—		34,829		590,141		624,970		—		—		879,871		879,871		(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	$	5,861,750	$	2,673,903	$	911,165	$	9,446,818	$	1,719,681	$	1,381,062


Identifiable Assets
(In thousands)	December 31,
	2024		2023
Insurance	$	33,030,140	$	29,976,619
Reinsurance & Monoline Excess	5,669,729		5,545,249
Corporate, other and eliminations (3)	1,867,399		1,680,147
Consolidated	$	40,567,268	$	37,202,015

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

(2) Revenues for Insurance includes $1,471 million, $1,171 million, and $1,029 million in 2024, 2023 and 2022, respectively, from foreign countries. Revenues for Reinsurance & Monoline Excess includes $485 million, $463 million, and $412 million in 2024, 2023 and 2022, respectively, from foreign countries.

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

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


(In thousands)	2024		2023		2022
Insurance
Other liability	$	4,068,662	$	3,605,298	$	3,188,399
Short-tail lines (1)	2,201,661		1,825,027		1,562,122
Auto	1,481,569		1,270,907		1,097,704
Workers' compensation	1,237,888		1,212,294		1,197,810
Professional liability	1,096,528		1,093,850		1,125,793
Total Insurance	10,086,308		9,007,376		8,171,828
Reinsurance & Monoline Excess
Casualty (2)	771,329		821,826		893,777
Property (2)	424,296		330,359		278,807
Monoline Excess (3)	266,552		241,126		217,017
Total Reinsurance & Monoline Excess	1,462,177		1,393,311		1,389,601
Total	$	11,548,485	$	10,400,687	$	9,561,429

(1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery, high net worth homeowners and other lines.

(2) Includes reinsurance casualty and property and certain program management business.

(3) Monoline excess includes operations that solely retain risk on an excess basis.

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