Item 1. Financial Statements

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Item 1. Financial Statements

W. R. BERKLEY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)


	March 31, 2026		December 31, 2025
	(Unaudited)		(Audited)
Assets
Investments:
Fixed maturity securities (amortized cost of $25,814,827 and $25,170,368; allowance for expected credit losses of $306 and $74 at March 31, 2026 and December 31, 2025, respectively)	$	25,508,409	$	25,047,662
Investment funds	1,398,022		1,361,802
Real estate	1,303,741		1,279,748
Equity securities	1,469,651		1,358,201
Arbitrage trading account	1,164,872		1,221,103
Loans receivable (net of allowance for expected credit losses of $75 and $161 at March 31, 2026 and December 31, 2025, respectively)	441,160		418,913

Total investments	31,285,855		30,687,429
Cash and cash equivalents	2,280,934		2,539,938
Premiums and fees receivable (net of allowance for expected credit losses of $42,130 and $42,006 at March 31, 2026 and December 31, 2025, respectively)	3,470,776		3,417,112
Due from reinsurers (net of allowance for expected credit losses of $4,972 and $6,378 at March 31, 2026 and December 31, 2025, respectively)	3,551,097		3,543,013
Deferred policy acquisition costs	1,012,807		1,000,691
Prepaid reinsurance premiums	870,765		881,831
Trading account receivables from brokers and clearing organizations	8,690		11,669
Property, furniture and equipment	567,116		596,235
Goodwill	184,332		184,332
Accrued investment income	246,022		255,199


Other assets	837,159		809,394
Total assets	$	44,315,553	$	43,926,843

Liabilities and Equity
Liabilities:
Reserves for losses and loss expenses	$	22,616,260	$	22,207,773
Unearned premiums	6,776,750		6,721,570
Due to reinsurers	627,760		615,781
Trading account securities sold but not yet purchased	33		66,285


Current and deferred federal and foreign income taxes	76,199		39,018
Other liabilities	1,626,900		1,724,797
Subordinated debentures	1,010,707		1,010,527
Senior notes and other debt	1,830,328		1,829,198

Total liabilities	34,564,937		34,214,949
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, 372,699,681 and 377,155,799 shares, respectively	158,705		158,705
Additional paid-in capital	1,000,375		987,708
Retained earnings	13,825,717		13,344,204
Accumulated other comprehensive loss	(601,277)		(451,097)
Treasury stock, at cost, 420,822,128 and 416,366,010 shares, respectively	(4,643,970)		(4,338,702)
Total stockholders’ equity	9,739,550		9,700,818
Noncontrolling interests	11,066		11,076
Total equity	9,750,616		9,711,894
Total liabilities and equity	$	44,315,553	$	43,926,843

See accompanying notes to interim consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands, except per share data)


	For the Three Months Ended March 31,

	2026		2025
REVENUES:
Net premiums written	$	3,174,345	$	3,133,302
Change in net unearned premiums	(59,173)		(120,921)
Net premiums earned	3,115,172		3,012,381
Net investment income	404,333		360,292
Net investment (losses) gains:
Net realized and unrealized (losses) gains on investments	(15,629)		15,711

Change in allowance for expected credit losses on investments	(146)		644
Net investment (losses) gains	(15,775)		16,355
Revenues from non-insurance businesses	156,551		128,909
Insurance service fees	28,230		28,929
Other income	1,823		533
Total revenues	3,690,334		3,547,399


OPERATING COSTS AND EXPENSES:
Losses and loss expenses	1,936,025		1,900,792
Other operating costs and expenses	970,660		949,910
Expenses from non-insurance businesses	135,842		126,364
Interest expense	31,709		31,727
Total operating costs and expenses	3,074,236		3,008,793
Income before income taxes	616,098		538,606
Income tax expense	(100,523)		(121,257)
Net income before noncontrolling interests	515,575		417,349
Noncontrolling interests	(359)		222
Net income to common stockholders	$	515,216	$	417,571

NET INCOME PER SHARE:
Basic	$	1.31	$	1.05
Diluted	$	1.31	$	1.04

See accompanying notes to interim consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(In thousands)


	For the Three Months Ended March 31,

	2026		2025
Net income before noncontrolling interests	$	515,575	$	417,349
Other comprehensive (loss) income:
Change in unrealized currency translation adjustments	(5,224)		23,930
Change in unrealized investment (losses) gains, net of taxes	(144,956)		148,273

Other comprehensive (loss) income	(150,180)		172,203
Comprehensive income	365,395		589,552
Noncontrolling interests	(359)		223
Comprehensive income to common stockholders	$	365,036	$	589,775

See accompanying notes to interim consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(In thousands, except per share data)


	For the Three Months Ended March 31,

	2026		2025
COMMON STOCK:
Beginning and end of period	$	158,705	$	158,705
ADDITIONAL PAID-IN CAPITAL:
Beginning of period	$	987,708	$	984,825
Restricted stock units issued	(567)		(4,347)
Restricted stock units expensed	13,234		12,423

End of period	$	1,000,375	$	992,901
RETAINED EARNINGS:
Beginning of period	$	13,344,205	$	12,265,070

Net income to common stockholders	515,216		417,571
Dividends ($0.09 and $0.08 per share, respectively)	(33,704)		(30,338)
End of period	$	13,825,717	$	12,652,303
ACCUMULATED OTHER COMPREHENSIVE LOSS:
Unrealized investment losses:
Beginning of period	$	(124,680)	$	(517,170)

Change in unrealized (losses) gains on securities without an allowance for expected credit losses	(144,954)		148,823
Change in unrealized losses on securities with an allowance for expected credit losses	(2)		(551)
End of period	(269,636)		(368,898)
Currency translation adjustments:
Beginning of period	(326,417)		(417,099)
Net change in period	(5,224)		23,930
End of period	(331,641)		(393,169)




Total accumulated other comprehensive loss	$	(601,277)	$	(762,067)
TREASURY STOCK:
Beginning of period	$	(4,338,702)	$	(4,079,220)
Stock exercised/vested	178		1,050
Stock repurchased	(302,432)		(49,202)
Other	(3,014)		(431)
End of period	$	(4,643,970)	$	(4,127,803)
NONCONTROLLING INTERESTS:
Beginning of period	$	11,076	$	12,328
(Distributions) contributions	(369)		228
Net income (loss)	359		(222)
Other comprehensive income (loss), net of tax	—		(1)
End of period	$	11,066	$	12,333

See accompanying notes to interim consolidated financial statements.

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)


	For the Three Months Ended March 31,

	2026		2025
CASH FROM OPERATING ACTIVITIES:
Net income to common stockholders	$	515,216	$	417,571
Adjustments to reconcile net income to net cash from operating activities:
Net investment losses (gains)	15,775		(16,355)
Depreciation and (accretion) amortization	(15,466)		(9,786)
Noncontrolling interests	359		(222)
Investment funds	(39,529)		(27,023)
Stock incentive plans	13,234		12,423
Change in:
Arbitrage trading account	(7,041)		(13,525)
Premiums and fees receivable	(48,652)		(43,844)
Reinsurance accounts	15,249		(42,956)
Deferred policy acquisition costs	(10,377)		(26,822)
Income taxes	77,266		134,962

Reserves for losses and loss expenses	390,620		544,204
Unearned premiums	47,872		113,060
Other	(286,669)		(297,870)
Net cash from operating activities	667,857		743,817
CASH USED IN INVESTING ACTIVITIES:
Proceeds from sale of fixed maturity securities	271,595		290,625
Proceeds from sale of equity securities	4,573		132,663
(Contributions to) distributions from investment funds	(4,030)		16,295
Proceeds from maturities and prepayments of fixed maturity securities	1,360,093		1,198,698
Purchase of fixed maturity securities	(2,217,950)		(2,486,160)
Purchase of equity securities	(120,517)		(56,564)
Real estate purchased	(37,431)		(14,785)

Change in loans receivable	(30,581)		(3,694)
Net proceeds from sale (purchases) of property, furniture and equipment	27,670		(16,201)
Change in balances due to security brokers	157,986		14,705



Net cash used in investing activities	(588,592)		(924,418)
CASH USED IN FINANCING ACTIVITIES:


Net proceeds from issuance of debt	1,105		1,638
Cash dividends to common stockholders	(33,704)		(30,338)
Purchase of common treasury shares	(302,432)		(49,202)
Other, net	(4,079)		(3,508)
Net cash used in financing activities	(339,110)		(81,410)
Net impact on cash due to change in foreign exchange rates	841		7,473
Net change in cash and cash equivalents	(259,004)		(254,538)
Cash and cash equivalents at beginning of period	2,539,938		1,974,747
Cash and cash equivalents at end of period	$	2,280,934	$	1,720,209

See accompanying notes to interim consolidated financial statements.

W. R. Berkley Corporation and Subsidiaries

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1) General

The unaudited 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”) for interim financial information. Accordingly, they do not include all the information and notes required by GAAP for annual financial statements. The unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring items, which are necessary to present fairly the Company’s financial position and results of operations on a basis consistent with the prior audited consolidated financial statements. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year. All significant intercompany accounts and transactions have been eliminated.

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. For further information related to areas of judgment and estimates and other information necessary to understand the Company’s financial position and results of operations, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

For interim periods, the income tax provision is based upon the Company’s estimated annual effective tax rate. This rate is greater than the federal income tax rate of 21%, primarily due to the geographical mix of earnings and amounts being subject to tax at a rate greater than the U.S. statutory rate and state taxes, which are partially offset by tax benefits related to tax-exempt investment income. Tax benefits related to equity-based compensation or other non-recurring items are discretely recorded in the period in which it occurs. At March 31, 2026, the Company recognized a tax benefit relating to the repeal of undiscounted property-casualty loss deductions and special estimated payments formerly available under Internal Revenue Code Section 847, which was partially offset by deferred tax charges in the United Kingdom.

(2) 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 the weighted average number of common shares outstanding during the period (including 17,378,810 and 17,659,297 common shares held in a grantor trust as of March 31, 2026 and 2025, respectively). 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.

The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows:


	For the Three Months Ended March 31,

(In thousands)	2026	2025
Basic	392,264	396,929
Diluted	394,779	399,825

(3) Recent Accounting Pronouncements and Accounting Policies

Recently adopted accounting pronouncements:

All accounting and reporting standards that became effective in 2026 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 the 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.

(4) Consolidated Statements of Comprehensive Income

The following tables present the components of the changes in accumulated other comprehensive (loss) income ("AOCI"):


(In thousands)	Unrealized Investment (Losses) Gains			Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
As of and for the three months ended March 31, 2026
Changes in AOCI
Beginning of period	$	(124,680)		$	(326,417)	$	(451,097)


Other comprehensive loss before reclassifications	(148,410)			(5,224)		(153,634)
Amounts reclassified from AOCI	3,454			—		3,454
Other comprehensive loss	(144,956)			(5,224)		(150,180)
Unrealized investment loss related to noncontrolling interest	—			—		—
End of period	$	(269,636)		$	(331,641)	$	(601,277)
Amounts reclassified from AOCI
Pre-tax	$	4,372	(1)	$	—	$	4,372
Tax effect	(918)		(2)	—		(918)
After-tax amounts reclassified	$	3,454		$	—	$	3,454
Other comprehensive loss
Pre-tax	$	(185,971)		$	(5,224)	$	(191,195)
Tax effect	41,015			—		41,015
Other comprehensive loss	$	(144,956)		$	(5,224)	$	(150,180)



As of and for the three months ended March 31, 2025
Changes in AOCI
Beginning of period	$	(517,170)		$	(417,099)	$	(934,269)


Other comprehensive income before reclassifications	144,102			23,930		168,032
Amounts reclassified from AOCI	4,171			—		4,171
Other comprehensive income	148,273			23,930		172,203
Unrealized investment loss related to noncontrolling interest	(1)			—		(1)
End of period	$	(368,898)		$	(393,169)	$	(762,067)
Amounts reclassified from AOCI
Pre-tax	$	5,280	(1)	$	—	$	5,280
Tax effect	(1,109)		(2)	—		(1,109)
After-tax amounts reclassified	$	4,171		$	—	$	4,171
Other comprehensive income
Pre-tax	$	185,855		$	23,930	$	209,785
Tax effect	(37,582)			—		(37,582)
Other comprehensive income	$	148,273		$	23,930	$	172,203

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

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

(5) Statements of Cash Flows

Interest payments were $41,245,000 and $41,193,000 for the three months ended March 31, 2026 and 2025, respectively. Income tax refunds were $614,000 and $18,740,000 for the three months ended March 31, 2026 and 2025, respectively.

(6) Investments in Fixed Maturity Securities

At March 31, 2026 and December 31, 2025, 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
March 31, 2026
Held to maturity:
State and municipal	$	29,182		$	—	$	552	$	—	$	29,734	$	29,182
Residential mortgage-backed	1,743			—		57		—		1,800		1,743
Total held to maturity	30,925			—		609		—		31,534		30,925
Available for sale:
U.S. government and government agency	4,378,606			—		37,479		(32,512)		4,383,573		4,383,573
State and municipal:
Special revenue	1,130,177			—		5,252		(27,159)		1,108,270		1,108,270
State general obligation	201,814			—		2,287		(3,804)		200,297		200,297
Pre-refunded	73,923			—		721		(32)		74,612		74,612
Corporate backed	159,306			—		1,261		(3,374)		157,193		157,193
Local general obligation	213,685			—		969		(3,219)		211,435		211,435
Total state and municipal	1,778,905			—		10,490		(37,588)		1,751,807		1,751,807
Mortgage-backed:
Residential	4,592,286			(77)		44,169		(138,303)		4,498,075		4,498,075
Commercial	218,847			—		3,172		(36)		221,983		221,983
Total mortgage-backed	4,811,133			(77)		47,341		(138,339)		4,720,058		4,720,058
Asset-backed	3,881,752			(229)		10,025		(22,603)		3,868,945		3,868,945
Corporate:
Industrial	3,514,642			—		36,565		(39,478)		3,511,729		3,511,729
Financial	3,526,804			—		34,606		(26,851)		3,534,559		3,534,559
Utilities	1,521,021			—		12,721		(14,083)		1,519,659		1,519,659
Other	209,346			—		1,365		(488)		210,223		210,223
Total corporate	8,771,813			—		85,257		(80,900)		8,776,170		8,776,170
Foreign government	2,161,693			—		16,184		(200,946)		1,976,931		1,976,931
Total available for sale	25,783,902			(306)		206,776		(512,888)		25,477,484		25,477,484
Total investments in fixed maturity securities	$	25,814,827		$	(306)	$	207,385	$	(512,888)	$	25,509,018	$	25,508,409

(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.


(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:
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	4,866,543		(65)		74,680		(132,680)		4,808,478		4,808,478
Asset-backed	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

The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the three months ended March 31, 2026 and 2025:


(In thousands)	2026		2025
Balance, beginning of period	$	9	$	25

Provision for expected credit losses	(9)		(5)
Balance, end of period	$	—	$	20

The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the three months ended March 31, 2026 and 2025:


	2026								2025
(In thousands)	Foreign Government		Mortgage-backed		Asset-backed		State and Municipal		Total		Foreign Government		Mortgage-backed		Asset-backed		State and Municipal		Total
Balance, beginning of period	$	—	$	65	$	—	$	—	$	65	$	216	$	430	$	—	$	—	$	646

Change on securities for which credit losses were not previously recorded	—		—		229		—		229		—		—		—		10		10
Change on securities for which credit losses were previously recorded	—		12		—		—		12		107		(430)		—		—		(323)

Balance, end of period	$	—	$	77	$	229	$	—	$	306	$	323	$	—	$	—	$	10	$	333

During the three months ended March 31, 2026, the Company increased the allowance for expected credit losses for available for sale securities primarily due to a decrease in the fair value of one investment in the asset-backed category. During the three months ended March 31, 2025, the Company decreased the allowance for expected credit losses for available for sale securities primarily due to improved pricing related to mortgage-backed securities.

The amortized cost and fair value of fixed maturity securities at March 31, 2026, 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		Fair Value
Due in one year or less	$	1,859,542	$	1,811,447
Due after one year through five years	7,947,108		7,814,089
Due after five years through ten years	3,963,797		3,959,533
Due after ten years	7,231,504		7,202,091
Mortgage-backed securities	4,812,876		4,721,858
Total	$	25,814,827	$	25,509,018

At March 31, 2026 and December 31, 2025, there were no investments that exceeded 10% of common stockholders' equity, other than investments in United States government and government agency securities.

(7) Investments in Equity Securities

At March 31, 2026 and December 31, 2025, investments in equity securities were as follows:


(In thousands)	Cost			Gross Unrealized				Fair Value		Carrying Value
Gains			Losses
March 31, 2026
Common stocks	$	602,744		$	255,501	$	(8,575)	$	849,670	$	849,670
Preferred stocks	513,249			112,647		(5,915)		619,981		619,981
Total	$	1,115,993		$	368,148	$	(14,490)	$	1,469,651	$	1,469,651

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

(8) Arbitrage Trading Account

At March 31, 2026 and December 31, 2025, the fair and carrying values of the arbitrage trading account were $1,165 million and $1,221 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 March 31, 2026, the fair value of short option contracts was $33 thousand (notional amount of $1 million). Other than with respect to the use of these trading account securities, the Company does not make use of derivatives.

(9) Net Investment Income

Net investment income consisted of the following:


	For the Three Months Ended March 31,

(In thousands)	2026		2025
Investment income (loss) earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	346,527	$	313,788
Investment funds	39,529		27,023
Equity securities	15,819		10,641

Arbitrage trading account (1)	10,313		16,329
Real estate	(4,933)		(4,017)

Gross investment income	407,255		363,764
Investment expense	(2,922)		(3,472)
Net investment income	$	404,333	$	360,292

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

(10) 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 investment 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, which were $251 million as of March 31, 2026.

Investment funds consisted of the following:


	Carrying Value as of				Income (Loss) from Investment Funds
	March 31,		December 31,		For the Three Months Ended March 31,
(In thousands)	2026		2025		2026		2025
Financial services (1)	$	365,731	$	360,320	$	7,402	$	7,114
Transportation	275,546		272,775		8,660		8,615
Real Estate	157,089		163,098		8,016		4,965
Infrastructure	176,316		169,847		5,792		3,502
Energy	43,565		41,966		2,433		(2,102)
Other funds	379,775		353,796		7,226		4,929
Total	$	1,398,022	$	1,361,802	$	39,529	$	27,023

(1) Includes the Company's minority investment in Lifson Re (see Note 23 Related-Party Transactions).

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

Other funds include deferred compensation trust assets of $47 million and $43 million as of March 31, 2026 and December 31, 2025, 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.

(11) Real Estate

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


	Carrying Value
	March 31,		December 31,
(In thousands)	2026		2025
Properties in operation	$	1,075,345	$	1,051,455
Properties under development	228,396		228,293
Total	$	1,303,741	$	1,279,748

As of March 31, 2026, properties in operation included a long-term ground lease in Washington, D.C., an office complex in New York City and the completed portion of a mixed-use project in Washington, D.C. Properties in operation are net of accumulated depreciation and amortization of $44,088,000 and $41,942,000 as of March 31, 2026 and December 31, 2025, respectively. Related depreciation expense was $2,570,000 and $2,228,000 for the three months ended March 31, 2026 and 2025, respectively. Future minimum rental income expected on operating leases relating to properties in operation is $28,469,051 in 2026, $41,187,585 in 2027, $44,955,741 in 2028, $40,347,609 in 2029, $34,499,456 in 2030, $29,851,700 in 2031 and $362,556,463 thereafter.

A mixed-use project in Washington, D.C. had been under development in 2026 and 2025. The completed portion of the project is reported in properties in operation.

(12) Loans Receivable

At March 31, 2026 and December 31, 2025, loans receivable were as follows:


(In thousands)	March 31, 2026		December 31, 2025
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	441,160	$	418,913



Fair value:
Real estate loans	$	441,236	$	419,074

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 variable interest rates and have maturities through 2030.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the three months ended March 31, 2026 and 2025:


	2026						2025
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Balance, beginning of period	$	161	$	—	$	161	$	1,088	$	26	$	1,114

Change in expected credit losses	(86)		—		(86)		(312)		(14)		(326)
Balance, end of period	$	75	$	—	$	75	$	776	$	12	$	788

During the three months ended March 31, 2026 and 2025, the Company decreased the allowance for expected credit losses due to a decrease in the weighted average life of the remaining 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.

(13) Net Investment (Losses) Gains

Net investment (losses) gains were as follows:


	For the Three Months Ended March 31,
(In thousands)	2026		2025
Net investment (losses) gains:
Fixed maturity securities:
Gains	$	5,148	$	2,632
Losses	(6,537)		(2,712)
Equity securities (1):
Net realized gains (losses) on investment sales	1		(2,595)
Change in unrealized (losses) gains	(4,494)		19,947
Investment funds	173		14
Real estate	(7,298)		3,943
Loans receivable	131		—
Other	(2,753)		(5,518)
Net realized and unrealized (losses) gains on investments in earnings before allowance for expected credit losses	(15,629)		15,711
Change in allowance for expected credit losses on investments:
Fixed maturity securities	(232)		318
Loans receivable	86		326
Change in allowance for expected credit losses on investments	(146)		644
Net investment (losses) gains	(15,775)		16,355
Income tax benefit (expense)	3,381		(3,528)
After-tax net investment (losses) gains	$	(12,394)	$	12,827


Change in unrealized investment (losses) gains on available for sale securities:
Fixed maturity securities without allowance for expected credit losses	$	(183,478)	$	183,987
Fixed maturity securities with allowance for expected credit losses	(2)		(551)

Investment funds	(2,519)		2,496
Other	28		(77)
Total change in unrealized investment (losses) gains	(185,971)		185,855
Income tax benefit (expense)	41,015		(37,582)
Noncontrolling interests	—		(1)
After-tax change in unrealized investment (losses) gains of available for sale securities	$	(144,956)	$	148,272

(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.

(14) Fixed Maturity Securities in an Unrealized Loss Position

The following tables summarize all fixed maturity securities in an unrealized loss position at March 31, 2026 and December 31, 2025 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
March 31, 2026
U.S. government and government agency	$	1,605,859	$	27,355	$	134,391	$	5,157	$	1,740,250	$	32,512
State and municipal	272,890		2,390		919,184		35,198		1,192,074		37,588
Mortgage-backed	960,232		11,297		683,839		127,042		1,644,071		138,339
Asset-backed	1,565,320		6,184		518,177		16,419		2,083,497		22,603
Corporate	1,963,231		24,464		1,538,307		56,436		3,501,538		80,900
Foreign government	1,052,525		20,046		252,591		180,900		1,305,116		200,946
Fixed maturity securities	$	7,420,057	$	91,736	$	4,046,489	$	421,152	$	11,466,546	$	512,888





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	251,861		2,265		839,061		130,415		1,090,922		132,680
Asset-backed	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

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.

A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at March 31, 2026 is presented in the table below:


($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Foreign government	59	$	159,082	$	174,727
State and municipal	5	29,106		894
Corporate	15	22,759		950

Mortgage-backed	14	1,897		116

Total	93	$	212,844	$	176,687

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 (loss).

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.

(15) Fair Value Measurements

The Company’s fixed maturity available for sale securities, equity securities and its arbitrage 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 on a recurring basis as of March 31, 2026 and December 31, 2025 by level:


(In thousands)	Total		Level 1		Level 2		Level 3
March 31, 2026
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	4,383,573	$	—	$	4,383,573	$	—
State and municipal	1,751,807		—		1,751,807		—
Mortgage-backed	4,720,058		—		4,720,058		—
Asset-backed	3,868,945		—		3,868,945		—
Corporate	8,776,170		—		8,756,299		19,871
Foreign government	1,976,931		—		1,976,931		—
Total fixed maturity securities available for sale	25,477,484		—		25,457,613		19,871
Equity securities:
Common stocks	849,670		846,795		772		2,103
Preferred stocks	619,981		—		611,307		8,674
Total equity securities	1,469,651		846,795		612,079		10,777
Arbitrage trading account	1,164,872		1,058,448		106,311		113
Total	$	28,112,007	$	1,905,243	$	26,176,003	$	30,761
Liabilities:
Trading account securities sold but not yet purchased	$	33	$	33	$	—	$	—


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	4,808,478		—		4,808,478		—
Asset-backed	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	$	—	$	—

The following tables summarize changes in Level 3 assets and liabilities for the three months ended March 31, 2026 and for the year ended December 31, 2025:


			(Losses) Gains Included In:
(In thousands)	Beginning Balance		(Losses) Earnings		Other Comprehensive (Losses) Income		Purchases		Sales		Transfers In / (Out)		Ending Balance

Three Months Ended March 31, 2026
Assets:
Fixed maturity securities available for sale:

Corporate	$	20,001	$	—	$	(130)	$	—	$	—	$	—	$	19,871
Total	20,001		—		(130)		—		—		—		19,871
Equity securities:
Common stocks	2,141		(38)		—		—		—		—		2,103
Preferred stocks	8,674		—		—		—		—		—		8,674
Total	10,815		(38)		—		—		—		—		10,777
Arbitrage trading account	113		—		—		—		—		—		113
Total	$	30,929	$	(38)	$	(130)	$	—	$	—	$	—	$	30,761



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

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

(16) Reserves for Loss 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 operating unit. These methods 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 operating unit.

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 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 operating unit. Expected loss cost inflation is particularly important for the long-tail lines, such as excess casualty, and claims with a high medical component, such as workers’ compensation. Reported and paid loss emergence patterns are used to project current reported or paid loss amounts to their ultimate settlement value. Loss development factors are based on the historical emergence patterns of paid and incurred losses, and are derived from the Company’s own experience and industry data. The paid loss emergence pattern is also significant to excess and assumed workers’ compensation reserves because those reserves are discounted to their estimated present value based upon such estimated payout patterns.

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

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

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


	March 31,
(In thousands)	2026		2025
Net reserves at beginning of period	$	18,953,674	$	17,166,641


Net provision for losses and loss expenses:
Claims occurring during the current year (1)	1,922,419		1,883,708
Increase in estimates for claims occurring in prior years (2) (3)	5,435		9,604
Loss reserve discount accretion	8,171		7,480
Total	1,936,025		1,900,792
Net payments for claims:
Current year	118,765		127,193
Prior years	1,424,066		1,304,763
Total	1,542,831		1,431,956
Foreign currency translation	777		43,780
Net reserves at end of period	19,347,645		17,679,257
Ceded reserves at end of period	3,268,615		3,242,730
Gross reserves at end of period	$	22,616,260	$	20,921,987

(1) Claims occurring during the current year are net of loss reserve discounts of $17 million and $14 million for the three months ended March 31, 2026 and 2025, 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 $2 million and $12 million for the three months ended March 31, 2026 and 2025, respectively.

(3) For certain retrospectively rated insurance policies and reinsurance agreements, reserve development is offset by additional or return premiums. Favorable development, net of additional and return premiums, was $1 million for both the three months ended March 31, 2026 and 2025.

During the three months ended March 31, 2026, favorable prior year development (net of additional and return premiums) of $1 million included $9 million of favorable prior year development for the Reinsurance & Monoline Excess segment partially offset by $8 million of adverse prior year development for the Insurance segment.

For the Insurance segment, the development during the first quarter of 2026 resulted primarily from favorable development for short-tail lines of business which was offset by adverse development for other liability. The favorable development for short-tail lines of business related to the 2025 accident year and resulted from favorable settlements of both catastrophe and non-catastrophe property claims below our expectations. In addition, auto physical damage experienced favorable prior year development during the first quarter of 2026, also related to favorable claim settlements from the 2025 accident year below our expectations.

The adverse other liability development was driven mainly by umbrella and excess liability claims, and to a lesser extent from the Company’s primary surplus lines casualty business. The other liability development was concentrated in accident years 2019 through 2023. The umbrella and excess liability development included a significant component stemming from underlying auto exposures. The Company believes that auto related claims are being particularly impacted by social inflation. An increase in the frequency of litigated claims is also driving up both indemnity and loss adjustment expense costs in these lines of business beyond expectations.

For the Reinsurance & Monoline Excess segment, the favorable development during the first quarter of 2026 was driven mainly by favorable development in non-proportional reinsurance assumed property, partially offset by adverse development in the non-proportional reinsurance assumed liability line of business. Similarly to the Insurance segment, the favorable property reinsurance development was driven by favorable claim settlements, below our expectations, related to the 2025 accident year. The unfavorable development for non-proportional reinsurance assumed liability was associated primarily with our U.S. assumed reinsurance businesses, and was concentrated mainly in accident years 2019 through 2023.

During the three months ended March 31, 2025, favorable prior year development (net of additional and return premiums) of $1 million included $12 million of for the Reinsurance & Monoline Excess segment partially offset by $11 million of adverse prior year development for the Insurance segment.

For the Insurance segment, the adverse development during the first quarter of 2025 was driven primarily by excess other liability, including umbrella, and was partially offset by favorable development for short-tail lines of business, including

commercial property and commercial auto physical damage. The adverse excess other liability, including umbrella, development was concentrated in accident years 2018 through 2022, and included a significant component stemming from underlying auto exposures. 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. 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 short-tail property lines of business during the first quarter of 2025 related to the 2024 accident year, and resulted from favorable settlements of both catastrophe and non-catastrophe claims below our expectations.

For the Reinsurance & Monoline Excess segment, the favorable development during the first quarter of 2025 was driven mainly by favorable development in non-proportional reinsurance assumed property, partially offset by adverse development in the non-proportional reinsurance assumed liability line of business. Similar to the Insurance segment, the favorable property reinsurance development was driven by favorable claim settlements, below our expectations, related to the 2024 accident year. The unfavorable development for non-proportional reinsurance assumed liability was associated primarily with our U.S. assumed reinsurance businesses, and was concentrated mainly in accident years 2018 through 2021.

(17) Fair Value of Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:


	March 31, 2026				December 31, 2025
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	25,508,409	$	25,509,018	$	25,047,662	$	25,048,534
Equity securities	1,469,651		1,469,651		1,358,201		1,358,201
Arbitrage trading account	1,164,872		1,164,872		1,221,103		1,221,103
Loans receivable	441,160		441,236		418,913		419,074
Cash and cash equivalents	2,280,934		2,280,934		2,539,938		2,539,938
Trading account receivables from brokers and clearing organizations	8,690		8,690		11,669		11,669
Due from broker	—		—		629		629
Liabilities:
Due to broker	157,034		157,034		—		—

Trading account securities sold but not yet purchased	33		33		66,285		66,285
Senior notes and other debt	1,830,328		1,417,275		1,829,198		1,440,055
Subordinated debentures	1,010,707		730,234		1,010,527		760,400

The estimated fair values of the Company’s fixed maturity securities, equity securities and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 15. 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.

(18) Premiums and Reinsurance Related Information

The following is a summary of insurance and reinsurance financial information:


	For the Three Months Ended March 31,

(In thousands)	2026		2025
Written premiums:
Direct	$	3,471,186	$	3,310,893
Assumed	314,580		373,046
Ceded	(611,421)		(550,637)
Total net premiums written	$	3,174,345	$	3,133,302

Earned premiums:
Direct	$	3,424,142	$	3,233,843
Assumed	314,934		339,596
Ceded	(623,904)		(561,058)
Total net premiums earned	$	3,115,172	$	3,012,381

Ceded losses and loss expenses incurred	$	357,740	$	314,252
Ceded commissions earned	$	152,948	$	139,604

The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the three months ended March 31, 2026 and 2025:


(In thousands)	2026		2025
Allowance for expected credit losses, beginning of period	$	42,006	$	39,884

Change in expected credit losses	124		(1,023)
Allowance for expected credit losses, end of period	$	42,130	$	38,861

The Company reinsures a portion of its insurance exposures in order to reduce its net liability on individual risks and catastrophe losses. The Company also cedes premiums to state assigned risk plans and captive insurance companies. Estimated amounts due from reinsurers are reported net of an allowance for expected credit losses.

The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the three months ended March 31, 2026 and 2025:


(In thousands)	2026		2025
Allowance for expected credit losses, beginning of period	$	6,378	$	8,350

Change in expected credit losses	(1,406)		(1,266)
Allowance for expected credit losses, end of period	$	4,972	$	7,084

(19) Restricted Stock Units

Pursuant to its 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. RSUs are expensed pro-ratably over the vesting period. RSU expenses were $13 million and $12 million for the three months ended March 31, 2026 and 2025, respectively. A summary of RSUs issued in the three months ended March 31, 2026 and 2025 follows:


($ in thousands)	Units	Fair Value

2026	6,045	$	432
2025	20,647	$	1,210

(20) 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. On April 23, 2026, the court issued a judgment that principally resolved the lawsuit in favor of the Company's subsidiary. The amount of the award for such subsidiary will be determined by the court. The Company believes that the award, in any case, will not be material to the Company’s financial condition.

(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 footnote 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 are as follows:


	For the Three Months Ended March 31,

(In thousands)	2026		2025
Leases:
Lease cost	$	13,915	$	12,778
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows	12,097		13,482
Right-of-use assets obtained in exchange for new lease liabilities	3,760		13,210


	As of March 31,
($ in thousands)	2026			2025
Right-of-use assets	$	215,547		$	185,373
Lease liabilities	$	255,715		$	222,855
Weighted-average remaining lease term	7.0 years			7.2 years
Weighted-average discount rate	6.00		%	5.67		%

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


(In thousands)	March 31, 2026
Contractual Maturities:
2026	$	40,758
2027	48,450
2028	46,802
2029	42,731
2030	37,907
Thereafter	99,086
Total undiscounted future minimum lease payments	315,734
Less: Discount impact	60,019
Total lease liability	$	255,715

(22) Business 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, the United Kingdom, Continental Europe, Australia, the Asia-Pacific Region and South Africa, as well as operations that solely retain risk on an excess basis 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 tables. Income (loss) 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
Three months ended March 31, 2026
Insurance	$	2,765,492	$	311,241	$	9,843	$	3,086,576	$	1,766,968	$	783,419	$	11,526	$	2,561,913	$	524,663	$	433,467
Reinsurance & Monoline Excess	349,680		67,849		—		417,529		169,057		105,766		—		274,823		142,706		122,367
Corporate, other and eliminations (3)	—		25,243		176,761		202,004		—		—		237,500		237,500		(35,496)		(28,224)
Net investment losses	—		—		(15,775)		(15,775)		—		—		—		—		(15,775)		(12,394)
Total	$	3,115,172	$	404,333	$	170,829	$	3,690,334	$	1,936,025	$	889,185	$	249,026	$	3,074,236	$	616,098	$	515,216
Three months ended March 31, 2025
Insurance	$	2,642,507	$	291,248	$	9,952	$	2,943,707	$	1,687,453	$	735,661	$	11,088	$	2,434,202	$	509,505	$	393,122
Reinsurance & Monoline Excess	369,874		66,430		—		436,304		213,339		102,585		—		315,924		120,380		95,843
Corporate, other and eliminations (3)	—		2,614		148,419		151,033		—		—		258,667		258,667		(107,634)		(84,221)
Net investment gains	—		—		16,355		16,355		—		—		—		—		16,355		12,827
Total	$	3,012,381	$	360,292	$	174,726	$	3,547,399	$	1,900,792	$	838,246	$	269,755	$	3,008,793	$	538,606	$	417,571

Identifiable Assets


(In thousands)	March 31, 2026		December 31, 2025
Insurance	$	35,954,379	$	35,686,306
Reinsurance & Monoline Excess	5,777,792		5,891,538
Corporate, other and eliminations (3)	2,583,382		2,348,999
Consolidated	$	44,315,553	$	43,926,843

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

(2) Revenues for Insurance from foreign operations for the three months ended March 31, 2026 and 2025 were $376 million and $333 million, respectively. Revenues for Reinsurance & Monoline Excess from foreign operations for the three months ended March 31, 2026 and 2025 were $113 million and $130 million, respectively.

(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 are as follows:


	For the Three Months Ended March 31,

(In thousands)	2026		2025
Insurance:
Other liability	$	1,097,841	$	1,072,728
Short-tail lines (1)	652,523		596,109
Auto	413,492		389,949
Workers' compensation	313,742		311,028
Professional liability	287,894		272,693
Total Insurance	2,765,492		2,642,507

Reinsurance & Monoline Excess:
Casualty (2)	171,719		181,767
Property (2)	101,852		120,843
Monoline excess (3)	76,109		67,264

Total Reinsurance & Monoline Excess	349,680		369,874

Total	$	3,115,172	$	3,012,381

(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.

(23) 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 10, Investment Funds, within Financial services).

Transactions between the Company and Lifson Re were as follows:


(In thousands)
Consolidated statements of income	March 31, 2026		March 31, 2025
Ceded written premiums	$	118,517	$	106,137
Ceded commissions and brokerage	33,925		30,424

	As of
Consolidated balance sheets	March 31, 2026		December 31, 2025
Due from reinsurers	$	561,264	$	537,366
Due to reinsurers	101,091		118,788

The Company earned certain management and performance fees from Lifson Re of $3 million and $1 million for the three months ended March 31, 2026 and 2025, respectively.

Mitsui Sumitomo Insurance Co., Ltd.

Pursuant to an arrangement (“the Framework Agreement”) entered between Mitsui Sumitomo Insurance Co., Ltd. (“MSI”) and a company owned by members of the Berkley family and trusts for their benefit (collectively, the “Berkley Family”), as of March 31, 2026, MSI owned 15.8% of the Company’s outstanding common stock excluding shares held in a deferred compensation grantor trust. 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 three months ended March 31, 2026, the Company ceded written premiums and had commissions with MSI or one of its affiliates of $15 million and $3 million, respectively. As of March 31, 2026, in connection with insurance ceded to MSI and its affiliates, the Company had amounts due from and due to reinsurers of $61 million and $11 million, respectively.
During the three months ended March 31, 2026, the Company assumed written premiums from MSI or one of its affiliates of $5 million. As of March 31, 2026, in connection with insurance assumed from MSI and its affiliates, the Company had premiums receivable and due to reinsured amounts of $5 million and $11 million, respectively.

MSI has a minority investment in Lifson Re.

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

SAFE HARBOR STATEMENT

This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2026 and beyond, are based upon the Company’s historical performance and on current plans, estimates and expectations. Forward-looking statements are generally, although not always, identified by words such as "may," "should," "expects," "provides," "anticipates," "assumes," "can," "will," "meets," "could," "likely," "intends," "might," "predicts," "seeks," "would," "believes," "estimates," "plans," "continues," or similar expressions. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition, including new entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, foreign government bonds, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy-related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts, including claims for cybersecurity-related risks; natural and man-made catastrophic losses, including as a result of terrorist activities or the ongoing conflict with Iran; the impact of climate-related risks, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, the risk of recession, changing interest rates, the impact of tariffs and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response, on our results and financial condition; cyber security breaches of our information technology systems and the information technology systems of our vendors and other third parties; the increasing use of artificial intelligence technologies by us or third parties on which we rely could expose us to technological, security, legal, and other risks; the risk of future pandemics, as well as continuing effects of the COVID-19 pandemic; foreign currency and political risks relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019; the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission.

These risks and uncertainties could cause our actual results for the year 2026 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Our future financial performance is dependent upon factors discussed in our Annual Report on Form 10-K, elsewhere in this Form 10-Q and our other SEC filings. Forward-looking statements speak only as of the date on which they are made. Except to the extent required by applicable laws, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

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