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, 2025 and 2024, 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, 2025, 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, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2025, 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, 2025, 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 27, 2026 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, 2025 were $22.2 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 27, 2026

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME


	Year Ended December 31,
(In thousands, except per share data)	2025		2024		2023
REVENUES:
Net premiums written	$	12,711,327	$	11,972,096	$	10,954,467
Change in net unearned premiums	(264,389)		(423,611)		(553,780)
Net premiums earned	12,446,938		11,548,485		10,400,687
Net investment income	1,429,067		1,333,161		1,052,835
Net investment gains:
Net realized and unrealized gains on investments	130,670		79,738		47,540
Change in allowance for expected credit losses on investments	1,550		37,970		(498)
Net investment gains	132,220		117,708		47,042
Revenues from non-insurance businesses	577,420		528,012		535,508
Insurance service fees	118,511		108,935		106,485
Other income	3,700		2,451		381
Total revenues	14,707,856		13,638,752		12,142,938
OPERATING COSTS AND EXPENSES:
Losses and loss expenses	7,771,657		7,131,595		6,372,142
Other operating costs and expenses	3,976,834		3,602,306		3,363,936
Expenses from non-insurance businesses	551,930		513,451		524,998
Interest expense	126,892		126,907		127,459
Total operating costs and expenses	12,427,313		11,374,259		10,388,535
Income before income taxes	2,280,543		2,264,493		1,754,403
Income tax expense	(495,764)		(509,916)		(370,557)
Net income before noncontrolling interests	1,784,779		1,754,577		1,383,846
Noncontrolling interests	(5,376)		1,538		(2,487)
Net income to common stockholders	$	1,779,403	$	1,756,115	$	1,381,359
NET INCOME PER SHARE:
Basic	$	4.48	$	4.39	$	3.40
Diluted	$	4.45	$	4.36	$	3.37

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Year Ended December 31,
(In thousands)	2025		2024		2023
Net income before noncontrolling interests	$	1,784,779	$	1,754,577	$	1,383,846
Other comprehensive gain (loss):
Change in unrealized translation adjustments	90,682		(77,615)		32,192
Change in unrealized investment gains, net of taxes	392,491		69,182		306,553

Other comprehensive gain (loss)	483,173		(8,433)		338,745
Comprehensive income	2,267,952		1,746,144		1,722,591
Noncontrolling interests	(5,375)		1,536		(2,485)
Comprehensive income to common stockholders	$	2,262,577	$	1,747,680	$	1,720,106

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	December 31,
(In thousands, except share data)	2025		2024
Assets
Investments:
Fixed maturity securities (amortized cost of $25,170,368 and $23,010,899; allowance for expected credit losses of $74 and $671 at December 31, 2025 and 2024)	$	25,047,662	$	22,397,865
Investment funds	1,361,802		1,468,246
Real estate	1,279,748		1,291,455
Arbitrage trading account	1,221,103		1,122,599
Equity securities	1,358,201		1,203,788
Loans receivable (net of allowance for expected credit losses of $161 and $1,114 at December 31, 2025 and 2024)	418,913		405,453

Total investments	30,687,429		27,889,406
Cash and cash equivalents	2,539,938		1,974,747
Premiums and fees receivable (net of allowance for expected credit losses of $42,006 and $39,884 at December 31, 2025 and 2024)	3,417,112		3,266,845
Due from reinsurers (net of allowance for expected credit losses of $6,378 and $8,350 at December 31, 2025 and 2024)	3,543,013		3,557,695
Deferred policy acquisition costs	1,000,691		951,728
Prepaid reinsurance premiums	881,831		823,207
Trading account receivable from brokers and clearing organizations	11,669		60,327
Property, furniture and equipment	596,235		478,511
Goodwill	184,332		184,332
Accrued investment income	255,199		243,772
Current federal and foreign income taxes	2,732		39,382
Deferred federal and foreign income taxes	141,496		220,217
Other assets	809,394		877,099
Total assets	$	44,071,071	$	40,567,268
Liabilities and Equity
Liabilities:
Reserves for losses and loss expenses	$	22,207,773	$	20,368,030
Unearned premiums	6,721,570		6,375,112
Due to reinsurers	615,781		668,652
Trading account securities sold but not yet purchased	66,285		73,358

Current federal and foreign income taxes	83,373		53,482
Deferred federal and foreign income taxes	99,873		65,151
Senior notes and other debt	1,829,198		1,831,158
Subordinated debentures	1,010,527		1,009,808
Other liabilities	1,724,797		1,715,078
Total liabilities	34,359,177		32,159,829
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 1,875,000,000 shares; issued and outstanding, net of treasury shares, 377,155,799 and 380,066,070 shares, respectively	158,705		158,705
Additional paid-in capital	987,708		984,825
Retained earnings	13,344,204		12,265,070
Accumulated other comprehensive loss	(451,097)		(934,269)
Treasury stock, at cost, 416,366,010 and 413,455,739 shares, respectively	(4,338,702)		(4,079,220)
Total common stockholders’ equity	9,700,818		8,395,111
Noncontrolling interests	11,076		12,328
Total equity	9,711,894		8,407,439
Total liabilities and equity	$	44,071,071	$	40,567,268

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)		2025		2024		2023
COMMON STOCK:
Beginning and end of period		$	158,705	$	158,705	$	158,705
ADDITIONAL PAID IN CAPITAL:
Beginning of period		$	984,825	$	964,789	$	944,632
Restricted stock units issued		(49,641)		(32,344)		(29,043)
Restricted stock units expensed		52,524		52,380		49,200


End of period		$	987,708	$	984,825	$	964,789
RETAINED EARNINGS:
Beginning of period		$	12,265,070	$	11,040,908	$	10,161,005

Net income to common stockholders		1,779,403		1,756,115		1,381,359
Dividends ($1.85, $1.40, and $1.29 per share, respectively)		(700,269)		(531,953)		(501,456)
End of period		$	13,344,204	$	12,265,070	$	11,040,908
ACCUMULATED OTHER COMPREHENSIVE LOSS:
Unrealized investment (losses) gains:
Beginning of period		$	(517,170)	$	(586,354)	$	(892,905)

Change in unrealized gains on securities without an allowance for expected credit losses		393,352		64,756		305,908
Change in unrealized (losses) gains on securities with an allowance for expected credit losses		(862)		4,428		643
End of period		(124,680)		(517,170)		(586,354)
Currency translation adjustments:
Beginning of period		(417,099)		(339,484)		(371,676)
Net change in period		90,682		(77,615)		32,192
End of period		(326,417)		(417,099)		(339,484)




Total accumulated other comprehensive loss		$	(451,097)	$	(934,269)	$	(925,838)
TREASURY STOCK:
Beginning of period		$	(4,079,220)	$	(3,783,133)	$	(3,251,429)
Stock exercised/vested		12,623		10,066		10,381

Stock repurchased		(270,221)		(303,655)		(537,163)
Other		(1,884)		(2,498)		(4,922)
End of period		$	(4,338,702)	$	(4,079,220)	$	(3,783,133)
NONCONTROLLING INTERESTS:
Beginning of period		$	12,328	$	13,806	$	19,829
(Distributions) contributions		(6,627)		58		(8,508)
Net income (loss)		5,376		(1,538)		2,487
Other comprehensive (loss) income, net of tax		(1)		2		(2)
End of period		$	11,076	$	12,328	$	13,806

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
(In thousands)	2025		2024		2023
CASH FROM OPERATING ACTIVITIES:
Net income to common stockholders	$	1,779,403	$	1,756,115	$	1,381,359
Adjustments to reconcile net income to net cash from operating activities:
Net investment gains	(132,220)		(117,708)		(47,042)
Depreciation and (accretion) amortization	(48,126)		(170,638)		(20,861)
Noncontrolling interests	5,376		(1,538)		2,487
Investment funds	(27,582)		11,491		(16,743)
Stock incentive plans	54,524		54,381		51,000
Change in:
Arbitrage trading account	(56,919)		122,738		(54,213)
Premiums and fees receivable	(129,586)		(184,431)		(334,178)
Reinsurance accounts	(114,564)		(31,738)		(306,017)
Deferred policy acquisition costs	(48,859)		(91,150)		(99,387)
Current income taxes	63,905		(28,526)		52,451
Deferred income taxes	9,437		95,311		(26,691)
Reserves for losses and loss expenses	1,766,882		1,707,722		1,715,076
Unearned premiums	321,735		485,488		617,535
Other	139,210		70,851		14,462
Net cash from operating activities	3,582,616		3,678,368		2,929,238
CASH FLOWS USED IN INVESTING ACTIVITIES:
Proceeds from sale of fixed maturity securities	1,149,313		2,310,746		1,011,195
Proceeds from sale of equity securities	430,405		331,291		318,852
Distributions from (contributions to) investment funds	139,711		134,853		(19,904)
Proceeds from maturities and prepayments of fixed maturity securities	5,312,043		4,890,572		3,506,903
Purchase of fixed maturity securities	(8,428,883)		(9,368,703)		(6,664,763)
Purchase of equity securities	(418,440)		(207,457)		(80,454)
Real estate disposed (purchased)	14,627		(66,632)		(2,074)

Change in loans receivable	12,695		(210,816)		(29,719)
Net additions to property, furniture and equipment	(169,994)		(105,623)		(53,080)
Change in balances due from security brokers	(70,812)		107,280		(33,929)
Cash received in connection with business disposition	—		—		96,567
Payment for business purchased, net of cash acquired	—		—		(11,558)
Net cash used in investing activities	(2,029,335)		(2,184,489)		(1,961,964)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Net proceeds from issuance of debt	—		3,105		980

Repayment of senior notes and other debt	(2,063)		—		(1,954)
Cash dividends to common stockholders	(700,269)		(531,953)		(501,456)
Purchase of common treasury shares	(270,221)		(303,655)		(537,163)
Other, net	(53,894)		(19,984)		(22,902)
Net cash used in financing activities	(1,026,447)		(852,487)		(1,062,495)
Net impact on cash due to change in foreign exchange rates	38,357		(29,840)		9,070
Net increase (decrease) in cash and cash equivalents	565,191		611,552		(86,151)
Cash and cash equivalents at beginning of year	1,974,747		1,363,195		1,449,346
Cash and cash equivalents at end of year	$	2,539,938	$	1,974,747	$	1,363,195

See accompanying notes to consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2025, 2024 and 2023

(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 were 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 were made in the 2023 financial statements as originally reported to conform to the presentation of the 2025 and 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 (decreased) increased net premiums written and premiums earned by $(2) million, $19 million and $19 million in 2025, 2024 and 2023, 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 17,378,810 common shares held in a grantor trust). The common shares held in the grantor trust are designated for delivery upon the settlement of restricted stock units ("RSUs") that are vested but mandatorily deferred. Accordingly, such shares deliverable under vested RSUs do not affect diluted shares outstanding since the shares are already included in basic shares outstanding (which includes the shares in the grantor trust referenced above). Diluted EPS is based upon the weighted average number of basic and common equivalent shares outstanding during the period 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 businesses. 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 $28 million and $29 million at December 31, 2025 and 2024, 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 $54 million, $55 million and $51 million for 2025, 2024 and 2023, 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, 2025 indicated that there were no material impairment losses related to goodwill and other intangible assets. Intangible assets of $86 million and $97 million are included in other assets as of December 31, 2025 and 2024, 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 $126 million, $138 million and $114 million in 2025, 2024 and 2023, respectively. Income taxes paid were $407 million (including $340 million to the United States, $40 million to Australia and $27 million to other jurisdictions), $410 million (including $361 million to the United States, $25 million to Australia and $24 million to other jurisdictions) and $332 million (including $296 million to the United States, $18 million to Australia and $18 million to other jurisdictions) in 2025, 2024 and 2023, 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 December 2023, the Financial Accounting Standards Board issued Accounting Standards Update 2023-09, Improvements to Income Tax Disclosures (Topic 740), to enhance the transparency and usefulness of income tax disclosures. The guidance requires additional disclosures primarily related to the rate reconciliation and income taxes paid. This guidance is effective for annual periods beginning after December 15, 2024. The Company adopted this guidance prospectively for the year ended December 31, 2025.

All other accounting and reporting standards that became effective in 2025 were either not applicable to the Company or their adoption did not have a material impact on the Company.

Accounting and reporting standards that are not yet effective:

In November 2024, the Financial Accounting Standards Board issued Accounting Standards Update 2024-03, Disaggregation of Income Statement Expenses, addressing investor requests for more transparent information. The guidance requires disclosure of specified information about certain costs and expenses in the notes to the financial statements. The guidance is effective for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Prospective application is required, with retrospective application permitted. The Company will adopt this guidance for the year ended December 31, 2027 and resulting impact will be disclosure only.

All other 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 (loss) (AOCI) as of and for the years ended December 31, 2025 and 2024:


(In thousands)
December 31, 2025	Unrealized Investment Gains (Losses)			Currency Translation Adjustments		Accumulated Other Comprehensive Income (Loss)
Changes in AOCI
Beginning of period	$	(517,170)		$	(417,099)	$	(934,269)


Other comprehensive income before reclassifications	344,083			90,682		434,765
Amounts reclassified from AOCI	48,408			—		48,408
Other comprehensive income	392,491			90,682		483,173
Unrealized investment loss related to noncontrolling interest	(1)			—		(1)
Ending balance	$	(124,680)		$	(326,417)	$	(451,097)
Amounts reclassified from AOCI
Pre-tax	$	61,276	(1)	$	—	$	61,276
Tax effect	(12,868)		(2)	—		(12,868)
After-tax amounts reclassified	$	48,408		$	—	$	48,408
Other comprehensive income
Pre-tax	$	497,765		$	90,682	$	588,447
Tax effect	(105,274)			—		(105,274)
Other comprehensive income	$	392,491		$	90,682	$	483,173


(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 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 income related to non-controlling 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)

(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, 2025 and 2024, 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, 2025
Held to maturity:
State and municipal	$	28,777		$	(9)	$	796	$	—	$	29,564	$	28,768
Residential mortgage-backed	1,838			—		76		—		1,914		1,838

Total held to maturity	30,615			(9)		872		—		31,478		30,606
Available for sale:
U.S. government and government agency	3,964,375			—		48,820		(15,157)		3,998,038		3,998,038
State and municipal:
Special revenue	1,206,387			—		6,002		(27,943)		1,184,446		1,184,446
State general obligation	203,543			—		3,465		(3,848)		203,160		203,160
Pre-refunded	74,276			—		619		(111)		74,784		74,784
Corporate backed	159,876			—		1,958		(3,459)		158,375		158,375
Local general obligation	218,022			—		1,459		(3,052)		216,429		216,429
Total state and municipal	1,862,104			—		13,503		(38,413)		1,837,194		1,837,194
Mortgage-backed securities:
Residential	4,584,970			(65)		71,048		(132,645)		4,523,308		4,523,308
Commercial	281,573			—		3,632		(35)		285,170		285,170
Total mortgage-backed securities	4,866,543			(65)		74,680		(132,680)		4,808,478		4,808,478
Asset-backed securities	3,807,393			—		20,196		(17,243)		3,810,346		3,810,346
Corporate:
Industrial	3,627,567			—		57,466		(36,499)		3,648,534		3,648,534
Financial	3,438,348			—		61,180		(16,460)		3,483,068		3,483,068
Utilities	1,300,506			—		22,593		(8,878)		1,314,221		1,314,221
Other	240,374			—		2,356		(1,142)		241,588		241,588
Total corporate	8,606,795			—		143,595		(62,979)		8,687,411		8,687,411
Foreign government	2,032,543			—		20,906		(177,860)		1,875,589		1,875,589
Total available for sale	25,139,753			(65)		321,700		(444,332)		25,017,056		25,017,056
Total investments in fixed maturity securities	$	25,170,368		$	(74)	$	322,572	$	(444,332)	$	25,048,534	$	25,047,662


(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

——————————

(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, 2025 and 2024:


	State and Municipal
(In thousands)	2025		2024
Balance, beginning of period	$	25	$	43

Provision for expected credit losses	(16)		(18)
Balance, end of period	$	9	$	25

The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the years ended December 31, 2025 and 2024:


	2025						2024
(In thousands)	Foreign Government		Mortgage- Backed		State and Municipal		Total		Foreign Government		Corporate		Mortgage- Backed		Asset-backed		State and Municipal		Total
Balance, beginning of period	$	216	$	430	$	—	$	646	$	29,603	$	5,026	$	158	$	1,164	$	757	$	36,708

Change on securities for which credit losses were not previously recorded	3		65		10		78		347		—		1,706		—		—		2,053
Change on securities for which credit losses were previously recorded	(219)		(430)		(10)		(659)		(29,355)		(5,026)		(831)		(1,164)		(757)		(37,133)
Reduction due to disposals	—		—		—		—		(379)		—		(603)		—		—		(982)
Balance, end of period	$	—	$	65	$	—	$	65	$	216	$	—	$	430	$	—	$	—	$	646

During the year ended December 31, 2025, the allowance for expected credit losses for available for sale securities decreased primarily due to improved pricing related to foreign government securities and mortgage-backed securities. During the year ended December 31, 2024, the allowance for expected credit losses for available for sale securities decreased primarily due to improved pricing associated with foreign government securities and corporate securities.

The amortized cost and fair value of fixed maturity securities at December 31, 2025, 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	$	1,789,587	$	1,740,503
Due after one year through five years	8,131,346		8,060,983
Due after five years through ten years	3,791,177		3,828,290
Due after ten years	6,589,868		6,608,366
Mortgage-backed securities	4,868,381		4,810,392
Total	$	25,170,359	$	25,048,534

(1) Amortized cost is reduced by the allowance for expected credit losses of $9 thousand related to held to maturity securities.

At December 31, 2025 and 2024, 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, 2025, investments with a carrying value of $2,131 million were on deposit in custodial or trust accounts, of which $1,149 million was on deposit with insurance regulators, $919 million was on deposit in support of the Company’s underwriting activities at Lloyd’s, $35 million was on deposit as security for reinsurance clients and $28 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, 2025 and 2024, investments in equity securities were as follows:


(In thousands)	Cost			Gross Unrealized				Fair Value		Carrying Value
Gains			Losses
December 31, 2025
Common stocks	$	566,577		$	181,120	$	(5,584)	$	742,113	$	742,113
Preferred stocks	433,472			187,891		(5,275)		616,088		616,088
Total	$	1,000,049		$	369,011	$	(10,859)	$	1,358,201	$	1,358,201

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

(5) Arbitrage Trading Account

At December 31, 2025 and 2024, the fair value and carrying value of the arbitrage trading account were $1,221 million and $1,123 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, 2025, the fair value of long option contracts outstanding was $3 million (notional amount of $278 million) and the fair value of short option contracts outstanding was $66 million (notional amount of $278 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)	2025		2024		2023
Investment income (loss) earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	1,307,087	$	1,260,429	$	929,098
Arbitrage trading account (1)	74,407		69,573		69,369
Equity securities	50,529		48,920		55,726
Investment funds	27,582		(11,491)		16,743
Real estate	(18,450)		(23,616)		(11,185)
Gross investment income	1,441,155		1,343,815		1,059,751
Investment expense	(12,088)		(10,654)		(6,916)
Net investment income	$	1,429,067	$	1,333,161	$	1,052,835

(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 $274 million as of December 31, 2025.

Investment funds consist of the following:


	Carrying Value as of December 31,				Income (Loss) From Investment Funds For the Year Ended
(In thousands)	2025		2024		2025		2024		2023
Financial services (1)	$	360,320	$	430,163	$	(20,504)	$	(39,418)	$	(10,911)
Transportation	272,775		286,426		32,441		13,335		40,607

Infrastructure	169,847		151,560		15,258		17,071		13,049
Real estate	163,098		178,685		4,023		12,195		(6,676)
Energy	41,966		42,776		146		14,501		5,058
Other funds	353,796		378,636		(3,782)		(29,175)		(24,384)
Total	$	1,361,802	$	1,468,246	$	27,582	$	(11,491)	$	16,743

(1) Includes the Company’s minority investment in Lifson Re (see Note 26 Related-Party Transactions).

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.

Other funds include deferred compensation trust assets of $43 million and $38 million in 2025 and 2024, 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)	2025		2024
Properties in operation	$	1,051,455	$	1,063,687
Properties under development	228,293		227,768
Total	$	1,279,748	$	1,291,455

In 2025, 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 $41,942,000 and $38,671,000 as of December 31, 2025 and 2024, respectively. Depreciation expense was $9,453,000, $8,633,000 and $8,935,000 for the years ended December 31, 2025, 2024 and 2023, respectively. Future minimum rental income expected on operating leases relating to properties in operation is $36,767,697 in 2026, $39,898,012 in 2027, $42,512,029 in 2028, $37,191,356 in 2029, $31,563,792 in 2030 and $373,880,063 thereafter.

A mixed-use project in Washington, D.C. had been under development in 2025 and 2024, with the completed portion as noted above reported in properties in operation as of December 31, 2025.

The Company had commitments to invest up to $31 million in certain real estate investment projects as of December 31, 2025.

(9) Loans Receivable

At December 31, 2025 and 2024, loans receivable were as follows:


	As of December 31,
(In thousands)	2025		2024
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	418,913	$	402,382
Commercial loans	—		3,071
Total	$	418,913	$	405,453

Fair value:
Real estate loans	$	419,074	$	402,177
Commercial loans	—		3,071
Total	$	419,074	$	405,248

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 following table presents the rollforward of the allowance for expected credit losses for loans receivable for the years ended December 31, 2025 and 2024:


	2025						2024
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Balance, beginning of period	$	1,088	$	26	$	1,114	$	2,983	$	21	$	3,004

Change in expected credit losses	(927)		(26)		(953)		(1,895)		5		(1,890)
Balance, end of period	$	161	$	—	$	161	$	1,088	$	26	$	1,114

During the year ended December 31, 2025, the allowance for expected credit losses decreased primarily due to the redemption of one loan and a decrease in the weighted average life of the remaining loan portfolio. During the year ended December 31, 2024, the allowance for expected credit losses decreased due to a decrease in the weighted average life of the loan portfolio.

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)	2025		2024		2023
Net investment gains:
Fixed maturity securities:
Gains	$	18,544	$	15,486	$	2,003
Losses	(19,191)		(32,866)		(25,429)
Equity securities (1):
Net realized gains on investment sales (2)	70,042		116,475		161,271
Change in unrealized gains	96,337		120,799		70,448
Investment funds	(292)		1,835		(25,625)
Real estate (3)	26,544		(2,647)		(70,934)
Loans receivable	(87)		—		(18,841)
Other (4)	(61,227)		(139,344)		(45,353)
Net realized and unrealized gains on investments in earnings before allowance for expected credit losses	130,670		79,738		47,540
Change in allowance for expected credit losses on investments:
Fixed maturity securities	597		36,080		715
Loans receivable	953		1,890		(1,213)
Change in allowance for expected credit losses on investments	1,550		37,970		(498)
Net investment gains	132,220		117,708		47,042
Income tax expense	(28,512)		(29,205)		(10,250)
After-tax net investment gains	$	103,708	$	88,503	$	36,792


Change in unrealized investment gains (losses):
Fixed maturity securities without allowance for expected credit losses	$	490,594	$	83,395	$	389,839
Fixed maturity securities with allowance for expected credit losses	(862)		4,428		643

Investment funds	8,203		(3,217)		3,989
Other	(170)		(132)		(1,568)
Total change in unrealized investment gains	497,765		84,474		392,903
Income tax expense	(105,274)		(15,292)		(86,350)
Noncontrolling interests	(1)		2		(2)
After-tax change in unrealized investment gains	$	392,490	$	69,184	$	306,551

(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) 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, 2025 and 2024 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, 2025
U.S. government and government agency	$	790,077	$	8,902	$	183,896	$	6,255	$	973,973	$	15,157
State and municipal	141,680		1,520		1,053,168		36,893		1,194,848		38,413
Mortgage-backed securities	251,861		2,265		839,061		130,415		1,090,922		132,680
Asset-backed securities	644,346		1,643		503,876		15,600		1,148,222		17,243
Corporate	494,240		4,308		1,786,925		58,671		2,281,165		62,979
Foreign government	666,054		9,770		285,640		168,090		951,694		177,860
Fixed maturity securities	$	2,988,258	$	28,408	$	4,652,566	$	415,924	$	7,640,824	$	444,332





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

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, 2025 is presented in the table below:


($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Foreign government	67	$	151,002	$	165,721

Corporate	24	43,968		814
State and municipal	5	28,958		1,047
Mortgage-backed securities	14	2,244		113

Total	110	$	226,172	$	167,695

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 (generally one U.S. pricing service plus additional pricing services with respect to a limited number of foreign securities held by the Company). 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, 2025 and 2024 by level:


(In thousands)	Total		Level 1		Level 2		Level 3
December 31, 2025
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	3,998,038	$	—	$	3,998,038	$	—
State and municipal	1,837,194		—		1,837,194		—
Mortgage-backed securities	4,808,478		—		4,808,478		—
Asset-backed securities	3,810,346		—		3,810,346		—
Corporate	8,687,411		—		8,667,410		20,001
Foreign government	1,875,589		—		1,875,589		—
Total fixed maturity securities available for sale	25,017,056		—		24,997,055		20,001
Equity securities:
Common stocks	742,113		739,186		786		2,141
Preferred stocks	616,088		—		607,414		8,674
Total equity securities	1,358,201		739,186		608,200		10,815
Arbitrage trading account	1,221,103		1,139,447		81,543		113

Total	$	27,596,360	$	1,878,633	$	25,686,798	$	30,929
Liabilities:
Trading account securities sold but not yet purchased	$	66,285	$	66,285	$	—	$	—

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	$	—	$	—

The following tables summarize changes in Level 3 assets and liabilities for the years ended December 31, 2025 and 2024:


			Gains (Losses) Included in:
(In thousands)	Beginning Balance		Earnings (Losses)		Other Comprehensive Income (Loss)		Impairments		Purchases		Sales		Paydowns/Maturities		Transfers In / Out		Ending Balance
Year ended December 31, 2025
Assets:
Fixed maturity securities available for sale:

Corporate	$	19,667	$	—	$	334	$	—	$	—	$	—	$	—	$	—	$	20,001
Total	19,667		—		334		—		—		—		—		—		20,001
Equity securities:
Common stocks	2,041		226		—		—		—		(126)		—		—		2,141
Preferred stocks	3,674		—		—		—		6,160		(1,160)		—		—		8,674
Total	5,715		226		—		—		6,160		(1,286)		—		—		10,815
Arbitrage trading account	3,510		1,745		—		—		—		(5,143)		—		1		113
Total	$	28,892	$	1,971	$	334	$	—	$	6,160	$	(6,429)	$	—	$	1	$	30,929



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

For the years ended December 31, 2025 and 2024, one security in each year within the arbitrage trading account portfolio was transferred into Level 3 from Level 2 given there were no available quoted prices or observable inputs.

(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, 2025, 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, 2016 to 2024 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, 2025 exchange rate for all periods.

Insurance

Other Liability

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2025
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	1,005,612	$	997,545	$	1,007,537	$	1,019,724	$	1,033,882	$	1,049,653	$	1,080,784	$	1,122,522	$	1,123,417	$	1,112,764	$	40,882	29
2017	—		1,056,364		1,089,751		1,112,499		1,130,172		1,169,911		1,239,544		1,257,401		1,289,835		1,312,455		67,962		28
2018	—		—		1,096,770		1,124,246		1,114,611		1,150,004		1,226,496		1,292,474		1,374,968		1,438,893		82,877		29
2019	—		—		—		1,234,191		1,230,155		1,231,387		1,288,106		1,363,275		1,396,896		1,439,633		100,286		31
2020	—		—		—		—		1,332,123		1,205,740		1,150,267		1,158,609		1,188,675		1,234,607		122,379		25
2021	—		—		—		—		—		1,525,082		1,380,843		1,334,315		1,354,190		1,440,014		177,217		28
2022	—		—		—		—		—		—		1,813,543		1,818,251		1,800,663		1,889,294		444,128		30
2023	—		—		—		—		—		—		—		2,114,315		2,077,833		2,054,648		837,033		29
2024	—		—		—		—		—		—		—		—		2,383,071		2,325,325		1,602,853		25
2025	—		—		—		—		—		—		—		—		—		2,626,044		2,237,259		19
Total																			$	16,873,677


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	67,371	$	204,063	$	384,280	$	551,150	$	668,420	$	757,859	$	861,245	$	944,882	$	997,545	$	1,035,353
2017	—		77,838		251,375		447,980		633,015		768,021		922,491		1,039,147		1,119,561		1,177,876
2018	—		—		85,190		261,870		432,342		611,576		801,704		979,655		1,123,197		1,247,469
2019	—		—		—		86,586		271,989		467,450		700,121		902,947		1,074,214		1,196,228
2020	—		—		—		—		70,510		222,319		417,957		614,487		812,670		949,161
2021	—		—		—		—		—		75,175		265,238		484,808		794,700		1,039,910
2022	—		—		—		—		—		—		92,298		353,014		704,534		1,079,369
2023	—		—		—		—		—		—		—		91,761		366,667		751,329
2024	—		—		—		—		—		—		—		—		95,165		341,419
2025	—		—		—		—		—		—		—		—		—		111,115
Total																			$	8,929,229
	Reserves for loss and loss adjustment expenses before 2016, net of reinsurance																		226,423
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	8,170,871

Workers' Compensation

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2025
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	702,716	$	696,339	$	684,700	$	660,520	$	651,278	$	657,972	$	654,385	$	641,549	$	639,412	$	645,507	$	17,158	58
2017	—		762,093		733,505		689,622		673,216		683,880		682,153		675,871		669,988		673,458		15,991		58
2018	—		—		778,964		724,697		715,055		724,056		721,170		715,018		708,336		717,051		17,063		56
2019	—		—		—		784,281		721,018		732,762		734,034		722,456		714,086		717,703		17,158		54
2020	—		—		—		—		725,245		716,430		704,008		668,222		652,424		656,816		8,156		42
2021	—		—		—		—		—		742,687		701,703		667,517		649,222		648,190		10,705		46
2022	—		—		—		—		—		—		772,620		745,218		715,578		715,628		26,775		46
2023	—		—		—		—		—		—		—		784,906		758,657		734,685		56,380		46
2024	—		—		—		—		—		—		—		—		811,614		777,646		142,325		48
2025	—		—		—		—		—		—		—		—		—		833,324		350,183		47
Total																			$	7,120,008


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	142,998	$	338,835	$	446,072	$	504,850	$	537,861	$	558,934	$	572,669	$	584,330	$	591,005	$	598,518
2017	—		153,456		362,299		468,817		525,753		559,198		583,258		603,006		617,243		628,306
2018	—		—		171,006		397,464		508,546		574,889		613,675		642,292		660,237		671,916
2019	—		—		—		184,715		397,376		515,914		581,003		618,324		644,772		663,649
2020	—		—		—		—		172,478		380,454		485,203		548,585		579,332		600,913
2021	—		—		—		—		—		172,729		384,867		490,648		547,863		582,994
2022	—		—		—		—		—		—		180,982		408,929		527,145		598,841
2023	—		—		—		—		—		—		—		195,204		418,788		539,016
2024	—		—		—		—		—		—		—		—		196,104		441,748
2025	—		—		—		—		—		—		—		—		—		212,080
Total																			$	5,537,981
			Reserves for loss and loss adjustment expenses before 2016, net of reinsurance																264,217
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,846,244

Professional Liability

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2025
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	310,177	$	324,519	$	361,292	$	402,423	$	439,705	$	469,048	$	464,492	$	450,620	$	454,376	$	451,120	$	13,801	9
2017	—		332,545		331,841		337,990		376,818		383,720		392,719		401,348		402,042		401,753		23,170		10
2018	—		—		334,850		322,109		333,268		359,430		382,222		397,629		393,555		389,344		43,168		10
2019	—		—		—		336,064		332,104		345,373		354,054		363,011		364,872		368,639		48,621		11
2020	—		—		—		—		393,872		375,336		337,654		313,348		300,725		296,916		26,890		11
2021	—		—		—		—		—		524,981		471,273		446,441		410,248		415,009		91,622		12
2022	—		—		—		—		—		—		649,151		586,058		556,019		533,621		207,921		12
2023	—		—		—		—		—		—		—		647,434		638,138		596,455		264,670		13
2024	—		—		—		—		—		—		—		—		652,871		647,813		362,839		15
2025	—		—		—		—		—		—		—		—		—		692,538		529,514		16
Total																			$	4,793,208


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	28,514	$	102,444	$	201,586	$	255,458	$	297,756	$	357,868	$	405,866	$	413,456	$	422,901	$	427,370
2017	—		36,445		96,150		162,623		242,971		261,069		306,582		329,340		349,730		362,678
2018	—		—		28,167		99,595		155,138		198,574		244,079		283,645		315,703		327,645
2019	—		—		—		31,652		97,328		147,779		200,255		235,114		270,992		298,961
2020	—		—		—		—		27,932		80,099		128,777		168,902		196,626		237,215
2021	—		—		—		—		—		28,539		85,866		153,032		220,397		276,769
2022	—		—		—		—		—		—		33,412		90,574		161,334		255,314
2023	—		—		—		—		—		—		—		41,073		122,356		215,591
2024	—		—		—		—		—		—		—		—		40,369		136,010
2025	—		—		—		—		—		—		—		—		—		54,712
Total																			$	2,592,265
	Reserves for loss and loss adjustment expenses before 2016, net of reinsurance																		58,601
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	2,259,544

Auto

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2025
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	417,591	$	418,263	$	428,927	$	429,436	$	426,313	$	426,265	$	428,158	$	429,911	$	428,352	$	427,441	$	1,129	48
2017	—		413,468		410,860		413,230		417,437		423,681		427,964		428,541		430,149		430,995		1,544		44
2018	—		—		423,455		443,583		460,219		474,879		502,611		511,694		513,912		512,884		2,518		43
2019	—		—		—		463,232		466,184		483,737		508,810		525,412		532,678		532,577		4,645		43
2020	—		—		—		—		493,539		396,628		407,526		433,991		440,637		445,804		1,301		29
2021	—		—		—		—		—		552,005		517,236		552,222		583,696		608,850		11,077		35
2022	—		—		—		—		—		—		723,267		740,688		763,806		802,255		35,392		41
2023	—		—		—		—		—		—		—		890,682		907,503		930,020		91,528		43
2024	—		—		—		—		—		—		—		—		1,062,427		1,022,138		276,533		44
2025	—		—		—		—		—		—		—		—		—		1,153,852		603,269		40
Total																			$	6,866,816


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	180,603	$	273,083	$	333,092	$	378,826	$	397,671	$	407,239	$	415,630	$	421,684	$	424,338	$	424,501
2017	—		173,964		257,335		314,739		357,282		386,260		403,864		414,486		422,351		425,108
2018	—		—		173,955		272,312		337,926		397,867		445,885		479,508		494,308		502,832
2019	—		—		—		180,027		280,089		361,142		423,458		474,177		500,234		518,787
2020	—		—		—		—		136,907		213,648		285,885		346,903		402,187		425,583
2021	—		—		—		—		—		168,499		289,019		379,969		476,465		550,804
2022	—		—		—		—		—		—		237,885		394,137		531,324		657,551
2023	—		—		—		—		—		—		—		271,552		467,227		661,466
2024	—		—		—		—		—		—		—		—		295,450		537,738
2025	—		—		—		—		—		—		—		—		—		317,147
Total																			$	5,021,517
			Reserves for loss and loss adjustment expenses before 2016, net of reinsurance																5,042
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	1,850,341

Short-tail lines

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2025
For the Year Ended December 31,
	Unaudited																				IBNR		Cumulative Number of Reported Claims
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	754,787	$	758,453	$	745,814	$	740,062	$	734,292	$	736,723	$	735,410	$	735,706	$	733,948	$	734,213	$	1,563	32
2017	—		731,043		730,031		724,245		723,194		722,906		724,139		722,842		722,404		722,888		1,686		40
2018	—		—		741,978		732,244		728,956		727,513		724,921		724,069		719,517		719,947		3,791		47
2019	—		—		—		703,739		685,145		675,146		669,008		669,126		658,750		657,296		3,574		42
2020	—		—		—		—		883,190		888,216		906,102		910,086		913,270		907,269		4,297		36
2021	—		—		—		—		—		805,775		810,447		793,743		790,837		790,146		9,499		33
2022	—		—		—		—		—		—		905,427		889,716		880,655		880,999		18,124		32
2023	—		—		—		—		—		—		—		1,036,001		997,840		989,593		37,413		28
2024	—		—		—		—		—		—		—		—		1,255,511		1,114,550		97,447		30
2025	—		—		—		—		—		—		—		—		—		1,436,694		610,043		22
Total																			$	8,953,595


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	404,261	$	653,463	$	694,726	$	709,649	$	714,504	$	721,214	$	722,046	$	727,037	$	729,261	$	730,279
2017	—		429,297		667,922		695,780		707,688		710,855		718,026		723,385		725,808		725,326
2018	—		—		401,786		645,593		691,916		708,876		707,915		712,992		715,706		718,309
2019	—		—		—		392,224		600,542		629,728		642,116		650,202		652,285		653,178
2020	—		—		—		—		447,119		768,708		829,695		884,658		888,968		889,801
2021	—		—		—		—		—		389,015		677,203		733,205		756,084		770,016
2022	—		—		—		—		—		—		440,972		762,169		827,800		850,260
2023	—		—		—		—		—		—		—		531,859		847,059		911,546
2024	—		—		—		—		—		—		—		—		559,412		923,661
2025	—		—		—		—		—		—		—		—		—		587,273
Total																			$	7,759,649
	Reserves for loss and loss adjustment expenses before 2016, net of reinsurance																		(445)
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	1,193,501

Reinsurance & Monoline Excess

Casualty

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2025
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		IBNR
2016	$	266,797	$	278,899	$	271,026	$	293,396	$	327,222	$	326,843	$	333,682	$	328,995	$	332,892	$	337,165	$	9,541
2017	—		257,234		247,785		265,054		286,643		305,992		321,755		335,173		345,090		357,493		16,254
2018	—		—		247,465		236,747		256,413		272,487		283,962		311,426		328,553		341,329		21,566
2019	—		—		—		262,465		259,821		266,712		266,965		296,080		316,801		336,042		28,772
2020	—		—		—		—		336,854		332,164		330,205		349,072		347,967		356,608		42,420
2021	—		—		—		—		—		430,770		432,251		424,891		427,481		453,576		86,204
2022	—		—		—		—		—		—		494,853		507,154		479,837		486,146		140,864
2023	—		—		—		—		—		—		—		479,858		472,917		484,781		222,872
2024	—		—		—		—		—		—		—		—		436,374		413,652		295,429
2025	—		—		—		—		—		—		—		—		—		443,941		395,239
Total																			$	4,010,733


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	26,586	$	73,567	$	115,091	$	159,774	$	193,329	$	228,350	$	249,234	$	267,601	$	279,732	$	294,864
2017	—		25,292		54,455		86,635		144,009		169,593		198,765		233,392		269,624		290,428
2018	—		—		18,942		52,766		93,374		128,903		164,086		207,741		245,388		270,913
2019	—		—		—		21,522		52,707		81,367		116,771		170,418		220,154		255,525
2020	—		—		—		—		28,319		67,078		109,610		171,832		218,359		254,833
2021	—		—		—		—		—		24,696		77,110		146,076		212,227		280,381
2022	—		—		—		—		—		—		28,077		83,762		159,448		233,285
2023	—		—		—		—		—		—		—		17,685		66,831		131,943
2024	—		—		—		—		—		—		—		—		16,875		55,767
2025	—		—		—		—		—		—		—		—		—		13,573
Total																			$	2,081,512
	Reserves for loss and loss adjustment expenses before 2016, net of reinsurance																		331,375
			Reserves for loss and loss adjustment expenses, net of reinsurance																$	2,260,596

Monoline Excess

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2025
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		IBNR
2016	$	72,657	$	70,281	$	71,404	$	64,957	$	65,485	$	65,222	$	63,932	$	59,804	$	55,371	$	57,373	$	1,048
2017	—		76,701		80,508		70,749		71,025		66,795		65,147		62,213		57,073		48,281		2,751
2018	—		—		77,820		72,505		71,448		66,180		60,347		58,244		54,784		46,233		3,299
2019	—		—		—		78,929		77,482		76,242		76,478		73,571		70,929		63,702		4,822
2020	—		—		—		—		84,354		83,468		82,952		80,946		70,219		60,759		10,403
2021	—		—		—		—		—		98,110		90,980		89,220		84,681		85,078		15,135
2022	—		—		—		—		—		—		128,923		101,725		100,612		90,351		13,742
2023	—		—		—		—		—		—		—		110,446		86,901		85,509		22,170
2024	—		—		—		—		—		—		—		—		120,046		89,794		45,243
2025	—		—		—		—		—		—		—		—		—		133,713		89,175
Total																			$	760,793


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	2,498	$	4,783	$	5,573	$	5,928	$	7,685	$	9,883	$	11,819	$	13,569	$	16,872	$	18,766
2017	—		6,282		12,810		15,356		17,327		18,375		19,275		21,275		23,523		25,457
2018	—		—		6,141		8,230		9,368		10,359		12,414		13,583		14,952		16,828
2019	—		—		—		6,241		10,884		12,728		15,436		18,836		21,094		24,642
2020	—		—		—		—		4,869		8,699		10,471		12,869		15,427		18,072
2021	—		—		—		—		—		4,586		6,026		8,872		11,412		13,973
2022	—		—		—		—		—		—		5,898		10,564		17,778		26,975
2023	—		—		—		—		—		—		—		6,390		12,471		16,547
2024	—		—		—		—		—		—		—		—		5,723		9,436
2025	—		—		—		—		—		—		—		—		—		6,014
Total																			$	176,710
	Reserves for loss and loss adjustment expenses before 2016, net of reinsurance																		576,839
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	1,160,922

Property

(In thousands)


Loss and Loss Expenses Incurred, Net of Reinsurance																					As of December 31, 2025
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		IBNR
2016	$	186,014	$	192,180	$	199,087	$	198,635	$	204,166	$	202,119	$	203,126	$	204,261	$	203,249	$	204,044	$	666
2017	—		228,476		223,694		222,774		221,753		215,552		216,037		217,179		216,027		216,352		290
2018	—		—		126,458		129,079		120,813		122,516		120,712		119,094		118,023		117,318		749
2019	—		—		—		120,797		93,545		98,085		97,060		96,996		96,129		96,760		1,209
2020	—		—		—		—		132,262		134,287		133,004		137,810		136,468		141,563		3,737
2021	—		—		—		—		—		156,684		168,907		166,320		162,159		158,306		2,286
2022	—		—		—		—		—		—		207,282		206,632		203,495		197,161		12,674
2023	—		—		—		—		—		—		—		177,380		173,605		165,333		14,323
2024	—		—		—		—		—		—		—		—		256,437		231,060		65,848
2025	—		—		—		—		—		—		—		—		—		307,718		181,307
Total																			$	1,835,615


Cumulative Paid Claims and Claim Adjustment Expenses, Net of Reinsurance
For the Year Ended December 31,
	Unaudited
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
2016	$	91,496	$	150,392	$	174,539	$	186,047	$	193,716	$	195,856	$	200,197	$	202,117	$	202,537	$	203,237
2017	—		87,893		163,021		194,423		202,727		206,293		209,510		212,117		212,868		213,968
2018	—		—		46,928		81,241		98,836		104,285		112,511		113,835		114,461		114,560
2019	—		—		—		35,584		70,147		84,513		87,111		89,023		90,942		92,024
2020	—		—		—		—		39,668		81,413		102,822		111,751		118,775		126,803
2021	—		—		—		—		—		31,657		92,757		130,615		145,630		148,460
2022	—		—		—		—		—		—		56,561		129,019		152,660		171,165
2023	—		—		—		—		—		—		—		58,403		110,388		133,772
2024	—		—		—		—		—		—		—		—		69,398		139,970
2025	—		—		—		—		—		—		—		—		—		86,168
Total																			$	1,430,127
	Reserves for loss and loss adjustment expenses before 2016, net of reinsurance																		3,639
	Reserves for loss and loss adjustment expenses, net of reinsurance																		$	409,127

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, 2025
Undiscounted reserves for loss and loss expenses, net of reinsurance:
	Other liability	$	8,170,871
	Workers' compensation	1,846,244
	Professional liability	2,259,544
	Auto	1,850,341
	Short-tail lines	1,193,501
	Other	222,930
	Insurance	15,543,431
	Casualty	2,260,596
	Monoline excess	1,160,922
	Property	409,127
	Reinsurance & Monoline Excess	3,830,645
Total undiscounted reserves for loss and loss expenses, net of reinsurance		$	19,374,076


(In thousands)		December 31, 2025
Due from reinsurers on unpaid claims:
	Other liability	$	1,162,055
	Workers' compensation	164,412
	Professional liability	1,086,923
	Auto	65,748
	Short-tail lines	429,944
	Other	145,790
	Insurance	3,054,872
	Casualty	97,489
	Monoline excess	41,132
	Property	60,606
	Reinsurance & Monoline Excess	199,227
Total due from reinsurers on unpaid claims		$	3,254,099


(In thousands)		December 31, 2025
Loss reserve discount:
	Other liability	$	—
	Workers' compensation	(9,263)
	Professional liability	—
	Auto	—
	Short-tail lines	—
	Other	—
	Insurance	(9,263)
	Casualty	(64,732)
	Monoline excess	(346,407)
	Property	—
	Reinsurance & Monoline Excess	(411,139)
Total loss reserve discount		$	(420,402)
Total gross reserves for loss and loss expenses		$	22,207,773

The following is supplementary information regarding average historical claims duration as of December 31, 2025:


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	5.3	%	12.7	%	15.6	%	16.4	%	13.5	%	11.0	%	9.2	%	7.4	%	4.6	%	3.4	%
Workers' compensation	25.0	%	31.2	%	16.2	%	9.2	%	5.1	%	3.6	%	2.5	%	1.8	%	1.3	%	1.2	%
Professional liability	7.5	%	15.3	%	16.0	%	15.0	%	9.7	%	11.6	%	8.0	%	3.3	%	2.7	%	1.0	%
Auto	32.4	%	20.0	%	15.6	%	12.7	%	9.1	%	4.6	%	2.7	%	1.6	%	0.6	%	—	%
Short-tail lines	52.3	%	33.9	%	6.0	%	2.8	%	0.7	%	0.6	%	0.3	%	0.5	%	0.1	%	0.1	%

Reinsurance & Monoline Excess
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1		2		3		4		5		6		7		8		9		10
Casualty	5.7	%	10.5	%	12.2	%	13.9	%	11.9	%	11.3	%	9.4	%	7.7	%	4.7	%	4.5	%
Monoline excess	7.9	%	6.0	%	3.9	%	4.0	%	3.7	%	3.2	%	4.0	%	3.9	%	4.9	%	3.3	%
Property	33.2	%	32.8	%	15.2	%	6.0	%	3.5	%	2.3	%	1.2	%	0.5	%	0.4	%	0.3	%

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


(In thousands)	2025		2024		2023
Net reserves at beginning of year	$	17,166,641	$	15,661,820	$	14,248,879


Net provision for losses and loss expenses:
Claims occurring during the current year (1)	7,702,638		7,083,999		6,311,780
Increase in estimates for claims occurring in prior years (2)	34,446		14,350		29,681
Loss reserve discount accretion	34,573		33,246		30,681
Total	7,771,657		7,131,595		6,372,142
Net payments for claims:
Current year	1,375,478		1,278,585		1,217,078
Prior year	4,758,098		4,205,845		3,764,532
Total	6,133,576		5,484,430		4,981,610
Foreign currency translation	148,952		(142,344)		22,409
Net reserves at end of year	18,953,674		17,166,641		15,661,820
Ceded reserve at end of year	3,254,099		3,201,389		3,077,832
Gross reserves at end of year	$	22,207,773	$	20,368,030	$	18,739,652

Net change in premiums and losses occurring in prior years:
Increase in estimates for claims occurring in prior years (2)	$	(34,446)	$	(14,350)	$	(29,681)
Retrospective premium adjustments for claims occurring in prior years (3)	37,692		18,782		10,782
Net premium and reserve development on prior years	$	3,246	$	4,432	$	(18,899)

(1)Claims occurring during the current year are net of loss reserve discounts of $56 million, $49 million and $47 million in 2025, 2024, and 2023, respectively.

(2)The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years increased by $29 million in 2025, increased by $13 million in 2024 and decreased by $13 million in 2023.

(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.

Favorable prior year development (net of additional and return premiums) was $3 million in 2025.

Insurance – Reserves for the Insurance segment developed unfavorably by $44 million in 2025 (net of additional and return premiums). The adverse development was driven by the other liability and auto liability lines of business, and was partially offset by favorable development for short tail lines of business, auto physical damage, professional liability and workers’ compensation.

The adverse other liability development was driven mainly by umbrella and excess liability claims, and to a lesser degree from the Company’s primary surplus lines casualty business. The umbrella and excess liability development included a significant component stemming from underlying auto exposures. The other liability development was concentrated in accident years 2017 through 2022. The adverse auto liability development was concentrated in accident years 2021 through 2023. The Company believes that auto-related claims are being particularly impacted by social inflation, which is contributing to an increase in the frequency of large losses beyond expectations. An increase in the frequency of litigated claims is also driving up both indemnity and loss adjustment expense in these lines of business beyond expectations. Social inflation can include higher settlement demands from plaintiffs, use of tactics such as litigation funding by the plaintiffs’ bar, negative public sentiment towards large businesses and corporations, and erosion of tort reforms, among others.

The favorable development for both short tail lines of business and auto physical damage related to the 2024 accident year, and resulted from favorable settlements of both catastrophe and non-catastrophe property claims below our expectations. The favorable professional liability development related mainly to accident years 2022 and 2023, and was driven by lower reported claim frequency and incurred losses than expected. The favorable workers’ compensation development was mainly related to accident years 2023 and 2024, and resulted from a continuation of favorable reported claim frequency below

expectations, although the magnitude of the favorable development in this line has moderated from levels seen in previous years.

Reinsurance & Monoline Excess – Reserves for the Reinsurance & Monoline Excess segment developed favorably by $47 million in 2025 (net of additional and return premiums). The favorable development was driven mainly by property and workers’ compensation business, and was partially offset by adverse development in casualty reinsurance assumed. Similar to the Insurance segment, the favorable property development related primarily to the 2024 accident year and resulted from favorable claims settlements below our expectations. The favorable workers’ compensation development was driven by continued lower claim frequency and reported losses relative to expectations, and was spread across many prior accident years, mainly 2017 through 2024. The unfavorable development for casualty reinsurance was concentrated mainly in accident years 2019 through 2023 and was associated primarily with non-proportional assumed reinsurance.

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.

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 $13 million and $16 million at December 31, 2025 and 2024, 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 $1,400 million and $1,358 million at December 31, 2025 and 2024, respectively. The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $420 million and $405 million at December 31, 2025 and 2024, respectively. At December 31, 2025, discount rates by year ranged from 0.7% to 6.5%, with a weighted average discount rate of 3.6%.

Substantially all discounted workers’ compensation reserves (97% of total discounted reserves at December 31, 2025) are excess workers’ compensation reserves. 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, 2025), 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)	2025		2024		2023
Written premiums:
Direct	$	13,694,521	$	12,904,893	$	11,676,743
Assumed	1,410,548		1,306,198		1,295,263
Ceded	(2,393,742)		(2,238,995)		(2,017,539)
Total net written premiums	$	12,711,327	$	11,972,096	$	10,954,467

Earned premiums:
Direct	$	13,401,453	$	12,346,924	$	11,112,980
Assumed	1,387,726		1,364,774		1,246,288
Ceded	(2,342,241)		(2,163,213)		(1,958,581)
Total net earned premiums	$	12,446,938	$	11,548,485	$	10,400,687

Ceded losses and loss expenses incurred	$	1,400,570	$	1,368,279	$	1,376,144
Ceded commission earned	$	555,763	$	505,753	$	471,841

The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the years ended December 31, 2025 and 2024:


(In thousands)	2025		2024
Allowance for expected credit losses, beginning of period	$	39,884	$	35,110

Change in expected credit losses	2,122		4,774
Allowance for expected credit losses, end of period	$	42,006	$	39,884

The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the years ended December 31, 2025 and 2024:


(In thousands)	2025		2024
Allowance for expected credit losses, beginning of period	$	8,350	$	8,404

Change in expected credit losses	(1,972)		(54)
Allowance for expected credit losses, end of period	$	6,378	$	8,350

The following table presents the amounts due from reinsurers as of December 31, 2025:


(In thousands)

Lifson Re	$	537,366
Lloyd’s of London	358,718
Partner Re	295,800
Munich Re	250,080
Berkshire Hathaway	246,729
Hannover Re	222,358
Renaissance Re	217,251
Swiss Re	132,731
Liberty Mutual	124,916
Everest Re	86,017
Arch Capital	76,095
Axis Capital	70,166
Sompo Holdings	64,383
Fairfax Financial	60,919
Nationwide Corp	60,342
TOA Reinsurance	51,290
Korean Re	45,858
Axa Insurance	42,361
MS & AD Insurance	38,179
Markel Corp	34,949
Chubb	27,873
Helvetia Holdings	25,542
Other reinsurers less than $20,000	378,336
Subtotal	3,448,259
Residual market pools (1)	101,132
Allowance for expected credit losses	(6,378)
Total	$	3,543,013

(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, 2025 (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		2025		2024
Senior notes and other debt due on:



February 15, 2037	6.250%	$	250,000	$	248,776	$	248,666
August 1, 2044	4.750%	350,000		346,574		346,389
May 12, 2050	4.000%	470,000		488,449		489,207
March 30, 2052	3.550%	400,000		394,807		394,609
September 30, 2061	3.150%	350,000		343,498		343,314

Subsidiary debt and other (1)	Various	7,094		7,094		8,973
Total senior notes and other debt		$	1,827,094	$	1,829,198	$	1,831,158
Subordinated debentures due on:



March 30, 2058	5.700%	$	185,000	$	179,811	$	179,489
December 30, 2059	5.100%	300,000		291,895		291,418
September 30, 2060	4.250%	250,000		244,958		244,668
March 30, 2061	4.125%	300,000		293,863		293,515
Total subordinated debentures		$	1,035,000	$	1,010,527	$	1,009,090

(1) Subsidiary debt of $7.3 million is due in 2026, partially offset by the unamortized cost of $0.2 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, 2025, 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, 2025
U.S. Federal	$	399,800	$	(16,709)	$	383,091
State & Local	13,597		(561)		13,036
Foreign	96,856		2,781		99,637
Total expense (benefit)	$	510,253	$	(14,489)	$	495,764

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

Income before income taxes from domestic operations was $1,881 million, $1,840 million and $1,430 million for the years ended December 31, 2025, 2024 and 2023, respectively. Income before income taxes from foreign operations was $400 million, $424 million and $324 million for the years ended December 31, 2025, 2024 and 2023, respectively.

A reconciliation of the income tax expense and the amounts computed by applying the Federal and foreign income tax rate of 21% for 2025, 2024 and 2023 to pre-tax income are as follows:


(In thousands)	2025		%		2024		2023
U.S. Federal Statutory Tax Rate	$	478,914	21.0	%	$	475,543	$	368,425
State and Local Taxes, Net of Federal Benefit (1)	10,299		0.4	%	12,329		12,271
Foreign Tax Effects	11,635		0.5	%	19,317		(1,896)
Effect of Cross-Border Tax Laws	(14,727)		(0.7)	%	—		—
Changes in Valuation Allowances	19,726		0.9	%	(220)		(10,883)
Nontaxable or Nondeductible Items	(10,083)		(0.4)	%	2,947		2,640
Total	$	495,764	21.7	%	$	509,916	$	370,557

(1) State income taxes in Florida and Illinois made up the majority (greater than 50%) of the tax effect in this category.

At December 31, 2025 and 2024, 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)	2025		2024
Deferred tax asset:
Loss reserve discounting	$	253,980	$	218,222
Unearned premiums	228,752		216,721
Unrealized investment losses	—		58,701
Net operating losses & foreign tax credits	77,810		62,159
Other-than-temporary impairments	5,006		7,149
Employee compensation plans	83,034		70,529
Other	82,948		81,915
Gross deferred tax asset	731,530		715,396
Less valuation allowance	(55,789)		(36,063)
Deferred tax asset	675,741		679,333
Deferred tax liability:
Amortization of intangibles	15,541		15,124
Unrealized investment gains	41,641		—
Deferred policy acquisition costs	204,979		195,150

Property, furniture and equipment	61,479		45,276
Investment funds	229,694		184,899
Other	80,784		83,818
Deferred tax liability	634,118		524,267
Net deferred tax asset	$	41,623	$	155,066

The Company had a net current tax payable of $81 million and $14 million at December 31, 2025 and 2024, respectively. At December 31, 2025, the Company had foreign net operating loss carryforwards of $179 million that have no expiration date. At December 31, 2025, the Company had a valuation allowance of $56 million. The Company has provided a valuation allowance against the utilization of $33 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, 2021.

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 $585 million of its non-U.S. subsidiaries since these earnings are intended to be permanently reinvested in the non-U.S. subsidiaries. In the future, if such earnings were distributed the Company projects that the incremental tax, if any, will be immaterial.

(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 2026, the maximum amount of dividends that can be paid by BIC without such approval is approximately $1.4 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)	2025		2024		2023
Net income	$	1,588,605	$	1,624,686	$	1,176,255
Statutory capital and surplus	$	9,857,138	$	9,421,874	$	8,776,138

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 $167 million at December 31, 2025*.*

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, 2025, BIC’s Total Adjusted Capital of $9.7 billion was 397% 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)	2025	2024	2023
Basic	396,968	399,734	406,500
Diluted	399,861	403,224	409,948

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 17,378,810 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).


	2025	2024	2023
Balance, beginning of year	380,066,070	384,817,136	396,819,150
Shares issued	1,158,755	951,930	1,059,500
Shares repurchased	(4,069,026)	(5,702,996)	(13,061,514)
Balance, end of year	377,155,799	380,066,070	384,817,136

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, 2025 and 2024:


	2025				2024
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	25,047,662	$	25,048,534	$	22,397,865	$	22,399,426
Equity securities	1,358,201		1,358,201		1,203,788		1,203,788
Arbitrage trading account	1,221,103		1,221,103		1,122,599		1,122,599
Loans receivable	418,913		419,074		405,453		405,248
Cash and cash equivalents	2,539,938		2,539,938		1,974,747		1,974,747
Trading accounts receivable from brokers and clearing organizations	11,669		11,669		60,327		60,327
Due from broker	629		629		—		—

Liabilities:
Due to broker	—		—		70,483		70,483
Trading account securities sold but not yet purchased	66,285		66,285		73,358		73,358
Senior notes and other debt	1,829,198		1,440,055		1,831,158		1,425,852
Subordinated debentures	1,010,527		760,400		1,009,808		805,864

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, 2025, the Company had commitments to invest up to $274 million and $31 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 businesses 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)	2025	2024
Leases:
Lease cost		$	54,261	$	45,718
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows		$	49,421	$	49,441
Right-of-use assets obtained in exchange for new lease liabilities		$	74,451	$	43,624


	As of December 31,
($ in thousands)	2025			2024
Right-of-use assets	$	221,480		$	180,035
Lease liabilities	$	260,451		$	218,397
Weighted-average remaining lease term	7.1 years			7.2 years
Weighted-average discount rate	5.98		%	5.59		%

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


(In thousands)	December 31, 2025
Contractual Maturities:
2026	$	54,475
2027	47,249
2028	45,830
2029	41,825
2030	37,008
Thereafter	96,197
Total undiscounted future minimum lease payments	322,584
Less: Discount impact	62,133
Total lease liability	$	260,451

(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, 2025:


	2025	2024	2023
RSUs granted and unvested at beginning of period:	5,734,397	6,435,267	6,927,639
Granted	1,043,988	1,217,056	1,647,690
Vested	(1,470,318)	(1,594,183)	(1,726,956)
Canceled	(376,921)	(323,743)	(413,106)
RSUs granted and unvested at end of period:	4,931,146	5,734,397	6,435,267

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, 2025, 17,375,058 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, 2025:


(In thousands)	2025		2024		2023
Unearned compensation at beginning of year	$	153,329	$	148,080	$	142,060
RSUs granted, net of cancellations	65,901		63,347		62,418
RSUs expensed	(52,524)		(52,380)		(49,200)
RSUs forfeitures	(8,653)		(5,718)		(7,198)
Unearned compensation at end of year	$	158,053	$	153,329	$	148,080

(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 $80 million, $72 million and $75 million in 2025, 2024 and 2023, 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, 2025:


	Units Outstanding	Maximum Value		Inception to date earned through December 31, 2025 on outstanding units
2021 grant	197,500	$	19,750,000	$	19,750,000
2022 grant	220,500	22,050,000		22,050,000
2023 grant	235,000	23,500,000		20,014,894
2024 grant	252,500	25,250,000		13,598,077
2025 grant	244,750	24,475,000		5,767,601

The following table summarizes the LTIP expense for each of the three years ended December 31, 2025:


(In thousands)	2025		2024		2023




2019 grant	—		—		3,241
2020 grant	—		135		7,047
2021 grant	(39)		3,543		6,561
2022 grant	2,523		8,167		6,155
2023 grant	7,799		7,076		5,424
2024 grant	7,154		6,476		—
2025 grant	5,768		—		—
Total	$	23,205	$	25,397	$	28,428

(24) Supplemental Financial Statement Data

Other operating costs and expenses consist of the following:


(In thousands)	2025		2024		2023
Amortization of deferred policy acquisition costs	$	1,384,739	$	1,219,849	$	1,038,975
Insurance operating expenses	2,131,785		2,075,053		1,915,711
Insurance service expenses	94,374		90,640		91,714
Net foreign currency losses (gains)	68,006		(52,376)		31,799

Other costs and expenses	297,930		269,140		285,737
Total	$	3,976,834	$	3,602,306	$	3,363,936

(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, 2025
Insurance	$	10,936,028	$	1,118,607	$	40,966	$	12,095,601	$	6,947,232	$	3,076,726	$	44,399	$	10,068,357	$	2,027,244	$	1,584,440
Reinsurance & Monoline Excess	1,510,910		270,851		—		1,781,761		824,425		439,798		—		1,264,223		517,538		407,659
Corporate, other and eliminations (3)	—		39,609		658,665		698,274		—		—		1,094,733		1,094,733		(396,459)		(316,404)
Net investment gains	—		—		132,220		132,220		—		—		—		—		132,220		103,708
Consolidated	$	12,446,938	$	1,429,067	$	831,851	$	14,707,856	$	7,771,657	$	3,516,524	$	1,139,132	$	12,427,313	$	2,280,543	$	1,779,403

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


Identifiable Assets
(In thousands)	December 31,
	2025		2024
Insurance	$	35,830,534	$	33,030,140
Reinsurance & Monoline Excess	5,891,538		5,669,729
Corporate, other and eliminations (3)	2,348,999		1,867,399
Consolidated	$	44,071,071	$	40,567,268

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

(2) Revenues for Insurance includes $1,408 million, $1,471 million, and $1,171 million in 2025, 2024 and 2023, respectively, from foreign countries. Revenues for Reinsurance & Monoline Excess includes $516 million, $485 million, and $463 million in 2025, 2024 and 2023, 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)	2025		2024		2023
Insurance
Other liability	$	4,429,621	$	4,068,662	$	3,605,298
Short-tail lines (1)	2,496,481		2,201,661		1,825,027
Auto	1,617,908		1,481,569		1,270,907
Workers' compensation	1,259,290		1,237,888		1,212,294
Professional liability	1,132,728		1,096,528		1,093,850
Total Insurance	10,936,028		10,086,308		9,007,376
Reinsurance & Monoline Excess
Casualty (2)	741,671		771,329		821,826
Property (2)	478,682		424,296		330,359
Monoline Excess (3)	290,557		266,552		241,126
Total Reinsurance & Monoline Excess	1,510,910		1,462,177		1,393,311
Total	$	12,446,938	$	11,548,485	$	10,400,687

(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.

(26) Related-Party Transactions

Lifson Re

Lifson Re, a Bermuda reinsurance company, participated on a fully collateralized basis in a majority of the Company’s reinsurance placements, with a 30% share of the amounts placed commencing on July 1, 2022, which 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. Lifson Re is currently capitalized with $418 million from a small group of sophisticated global investors with long-term investment horizons, including a minority participation by the Company (which is included in Note 7, Investment Funds, within Financial services).

Transactions between the Company and Lifson Re were as follows:


(In thousands)	Year Ended December 31,
Consolidated statements of income	2025		2024		2023
Ceded written premiums	$	494,359	$	416,509	$	436,941
Ceded commissions and brokerage	133,479		104,075		123,510

	As of December 31,
Consolidated balance sheets	2025		2024
Due from reinsurers	$	537,366	$	471,689
Due to reinsurers	118,788		166,304

The Company earned certain management and performance fees from Lifson Re of $11 million, $6 million and $5 million for the years ended December 31, 2025, 2024, and 2023, respectively.

Mitsui Sumitomo Insurance Co., Ltd.

As of December 31, 2025, Mitsui Sumitomo Insurance Co., Ltd. (“MSI”) owned 13.4% of the Company’s outstanding common stock excluding shares held in a deferred compensation grantor trust.

On March 28, 2025, MSI entered into an arrangement (the “Framework Agreement”) with a company owned by members of the Berkley family and trusts for their benefit (collectively, the “Berkley Family”) providing for MSI to purchase 15% of the Company’s outstanding common stock (as defined in the Framework Agreement). In addition, pursuant to the Framework Agreement, the Berkley Family recommended to the Company’s Board of Directors (the “Board”) that MSI’s designee be nominated to stand for election to the Board at the Company’s 2026 annual stockholders meeting. Upon recommendation of the Board’s Nominating and Corporate Governance Committee, the Board approved MSI’s designee standing for election.

In the normal course of its operations, the Company from time to time enters into reinsurance transactions with MSI or one of its affiliates (including its Lloyd’s of London operations), including the following:

During the year ended December 31, 2025, the Company ceded written premiums and had commissions with MSI or one of its affiliates of $70 million and $13 million, respectively, and in connection with such ceded reinsurance as of December 31, 2025, had an amount due from reinsurers of $58 million and an amount due to reinsurers of $16 million.
During the year ended December 31, 2025, the Company assumed written premiums from MSI or one of its affiliates of $12 million, and in connection with such assumed reinsurance as of December 31, 2025, had assumed premiums receivable of $4 million and amounts due to reinsured of $11 million.

MSI has a minority investment in Lifson Re.

The Lifson Re and MSI transactions discussed above were entered into at arm's-length.

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