10-K 0001095073-26-000006 (2026-02-26) vs 10-K 0001095073-25-000015 (2025-02-27)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 11,585 |
18.6% |
| MD&A | Item 7 | 15,289 |
20.8% |
| Legal Proceedings | Item 3, via Note 12 – COMMITMENTS AND CONTINGENCIES | 260 |
10.3% |
| Accounting Policies | 10-K text, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 4,636 |
15.3% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 169 words changed in this paragraph; it is 47% similar to last year's version.
The increase in current year attritional losses was mainly due to the strengthening of U.S. casualty reserves. Unfavorable development on prior year attritional losses was $751 million in 2025 compared to unfavorable development of $1.5 billion in 2024 compared to favorable development of $5 million in 2023. 2024. The net unfavorable development on prior year attritional reserves of $1.5 billion $751 million in 2024 2025 is comprised of $1.1 billion $471 million of unfavorable development on prior years attritional losses from the Insurance segment, mainly driven by a combination of social inflation and portfolio concentrations segment due to reserve strengthening in certain U.S. casualty lines of business driven by elevated loss experience in excess casualty and $403 U.S. liability lines primarily on accident years 2022-2024, and $163 million of unfavorable development on prior years attritional losses in our Other segment which was driven by U.S. casualty lines, primarily from the Other segment, mainly related to certain our sports and leisure lines for accident years 2019 through 2023, including A&E reserve strengthening of $54 million. business. In addition, the Reinsurance segment recorded $684 million of unfavorable development on prior year year, primarily related to aviation losses associated with the Russia/Ukraine war and casualty reserves. This unfavorable development in the Reinsurance segment was largely reserves, partially offset by favorable development booked on well-seasoned reserves in the property and mortgage lines. Embedded in the amounts noted above is $122 million of prior year losses related to the ADC.
Source: Item 7, 10-K 0001095073-26-000006 vs Item 7, 10-K 0001095073-25-000015
Risk Factors 147 words changed in this paragraph; it is 71% similar to last year's version.
We are required to maintain reserves to cover our ultimate liability of losses and LAE for both reported and unreported claims. These reserves are only estimates of what we believe the ultimate settlement and administration of claims will cost based on facts and circumstances known to us and incorporates actuarial and statistical analysis. Loss reserve estimates are reconsidered, as necessary, as experience develops and to reflect other changes in circumstances that may affect our estimate of ultimate loss, and this could potentially result in increases to our reserves. In setting reserves for our reinsurance liabilities, we rely on claims data supplied by our ceding companies and brokers, along with other data that may affect our estimate of ultimate loss and actuarial and statistical analysis to arrive at an estimate of ultimate liability for losses and LAE. The information received from our ceding companies is not always timely or accurate, which can contribute to inaccuracies in our loss projections. For the insurance and reinsurance businesses, ultimate losses may differ materially from our expectations at the time we underwrite the business. Because of the uncertainties that surround our estimates of loss and LAE reserves, we cannot be certain that ultimate losses and LAE payments will not exceed the estimates we make at any given time. For example, in the quarter ended December 31, 2024, the Company increased its loss reserves by $1.7 billion, pre-tax, primarily driven by unfavorable development in U.S. casualty insurance lines of business. Loss experience in these lines of business is very unpredictable and has been exacerbated by social inflation factors such as uncertain legal system outcomes, increased frequency of high-severity claims and third-party litigation funding. If our reserves are deficient in future periods, we may be required to increase loss reserves in the period in which such deficiencies are identified which would cause a charge to our earnings, a reduction of capital and could result in adverse effects on our business, financial condition, results of operation or liquidity.
Source: Item 1A, 10-K 0001095073-26-000006 vs Item 1A, 10-K 0001095073-25-000015
Accounting Policies 66 words changed in this paragraph; it is 82% similar to last year's version.
The Company, through its subsidiaries, conducts business through two reportable segments: Reinsurance and Insurance. During the fourth quarter of 2024, the Company revised the classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new operating segment called "Other". The new Other segment includes the results of our sports and leisure business sold in October 2024, consisting of policies written prior to the sale and polices renewed and certain new business written on the Company’s paper post-sale. It also includes run-off A&E exposures, certain discontinued insurance programs primarily written prior to 2012 and certain discontinued insurance and reinsurance coverage classes. The Other segment does not generally sell insurance or reinsurance products but is responsible for the management of existing policies and settlement of related losses. Additionally, during the fourth quarter of 2023, the Company revised the classification and presentation of certain products related to its accident and health business within the reportable segment groupings. These products have been realigned from within the Reinsurance segment to the Insurance segment to appropriately reflect how the business segments are now managed due to changes in management beginning in the fourth quarter of 2023. These segment presentation changes have been reflected retrospectively. See also Note 6 7 of the Notes to these Consolidated Financial Statements.
Source: 10-K text, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001095073-26-000006 vs 10-K text, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001095073-25-000015
Legal Proceedings 23 words changed in this paragraph; it is 90% similar to last year's version.
In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Company’s rights and obligations under insurance and reinsurance agreements. In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it. In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights. These disputes arise from time to time and are ultimately resolved through both informal and formal means, including negotiated resolution, arbitration and litigation. In all such matters, the Company believes that its positions are legally and commercially reasonable. The Company considers the statuses of these proceedings when determining its reserves for unpaid loss and LAE.
Source: Item 3, via Note 12 – COMMITMENTS AND CONTINGENCIES, 10-K 0001095073-26-000006 vs Item 3, via Note 11 – COMMITMENTS AND CONTINGENCIES, 10-K 0001095073-25-000015
Every change, by type
Sentences and paragraphs of EG's Risk Factors and MD&A, 10-K 2026-02-26 against 10-K 2025-02-27.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
We are exposed to unpredictable catastrophic events, including, but not limited to, weather-related and other natural catastrophes, as well as acts of terrorism, wars, pandemics, political instability and significant cyber or operational incidents.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
We purchase prospective reinsurance for our insurance and reinsurance operations in order to mitigate the volatility of losses on our financial results. From time to time, market conditions have limited, and in some cases have prevented, insurers and reinsurers from obtaining the types and amounts of reinsurance that they consider adequate for their business needs. There is no guarantee that our desired amounts of reinsurance or retrocessional reinsurance will be available in the marketplace in the future. In the current environment, our ability to renew our current reinsurance or retrocessional reinsurance arrangements or obtain desired amounts of new or replacement coverage on favorable terms may be substantially reduced as a result of the impact of inflation, industry catastrophic losses to reinsurer capital and the appetite for certain lines of business. In addition to capacity risk, the remaining capacity may not be on terms we deem appropriate or acceptable or with companies with whom we want to do business.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
The percentage of business that we reinsure may vary considerably from year to year, depending on our view of the relationship between cost and expected benefit for the contract period.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
Moreover, certain states have enacted laws that require a property and casualty insurer to participate in assigned risk plans, reinsurance facilities, joint underwriting associations and other residual market plans. U.S. state regulators also require that admitted insurers offer property and casualty coverage to all risks in that market and often restrict an insurer’s ability to charge the price it might otherwise charge or restrict an insurer’s ability to offer or enforce specific policy deductibles. In these markets, we may be compelled to underwrite business at lower than desired rates or accept additional risk not contemplated in our existing rates, participate in the operating losses of residual market plans or pay assessments to fund operating deficits of state-sponsored funds, which could lead to lower than anticipated profitability.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
The global economic environment continues to be impacted by fiscal or monetary policies; uncertainty concerning the future path of interest rates; the effect of social, economic and political conditions and geopolitical events, supply chain disruptions; the implementation of tariffs and other protectionist trade policies; and the possibility of a recession, government shutdowns, debt ceilings and funding. Ongoing global economic uncertainties and evolving market conditions may affect our results of operations, financial condition and capital resources.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
Recent technological advancements in the insurance industry and information technology industry including in underwriting, claims, distribution and operations present new and fast-evolving competitive risks as participants seek to increase the speed of transactions, lower costs and create new opportunities. We will be at a competitive disadvantage if, over time, our competitors are more effective than us in their utilization of technology and evolving data analytics. If we do not anticipate or keep pace with these technological and other changes impacting the insurance industry, it could adversely affect our business results of operations and financial condition.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
The completion of any business or asset acquisition or sale is subject to certain risks, including those relating to the receipt of required regulatory approvals, the terms and conditions of regulatory approvals including any financial accommodations required by regulators, our ability to satisfy such terms, conditions and accommodations, the occurrence of any event, change or other circumstances that could give rise to the termination of a transaction and the risk that parties may not be willing or able to satisfy the conditions to a transaction. As a result, there can be no assurance that any business or asset acquisition or sale will be completed as contemplated, or at all, or regarding the expected timing of the completion of the acquisition or disposition. Additionally, acquisitions and divestitures may not produce the anticipated benefits and may result in unintended consequences, which could have a material adverse impact on our financial condition and results of operations. We may not be able to achieve expected synergies as a result of acquisitions or divestitures. In the case of business or asset dispositions, we may have continued financial exposure to the divested businesses through reinsurance, indemnification or other financial arrangements following the transaction. The expected benefits of acquired or divested businesses may not be realized and involve additional uncertainties, continuing costs and risks that may negatively impact our business, financial condition, results of operations or liquidity.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
For example, in October 2025, the Company entered into definitive agreements to sell the renewal rights for certain lines of the commercial retail insurance business in the U.S., U.K., E.U. and Asia Pacific to AIG There can be no assurance that we will realize the anticipated economic, strategic or other benefits of the transaction. We may also incur other related costs and our existing businesses could also be negatively impacted.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
In the normal course of business, we are subject to regulatory and governmental investigations, document requests, subpoenas and civil actions, litigation and other forms of dispute resolution in various domestic and foreign jurisdictions. In addition, we are involved in litigation and arbitration concerning our rights and obligations under policies and contracts issued by us and under reinsurance contracts with third parties. Such investigations, inquiries, document requests, subpoenas or examinations could develop into administrative, civil or criminal proceedings or enforcement actions, including class-actions, in which remedies could include fines, penalties, restitution, remedial actions, enhanced supervision or alterations in our business practices, and could result in additional expenses, limitations on certain business activities and reputational damage.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
The insurance and reinsurance regulatory framework continues to be subject to increased scrutiny in many jurisdictions, including the U.S., Bermuda and Europe. The International Association of Insurance Supervisors has in place a Common Framework for the supervision of Internationally Active Insurance Groups (“IAIGs”), which is focused on the group-wide supervision of IAIGs. As described above in “Regulatory Matters”, the Company may become subject to the group supervision requirements promulgated by the BMA under the Amendment Act. Groups subject to BMA group supervision have a 12-month transition period to take steps required for compliance with the BMA authorized to grant extensions of up to an additional 12 months upon application. Under the Amendment Act, the Company may become subject to group-level solvency and capital requirements, consolidated financial reporting and auditing obligations, recovery planning requirements and prior notification or approval requirements for certain material changes within the group. As Group Supervisor, the BMA will also chair a Supervisory College, coordinating with other regulators that supervise Everest’s licensed entities in other jurisdictions. Assessing and complying with the Amendment Act’s requirements may require the Company to allocate considerable time and resources that could impact the domicile and operations of our insurance and/or non-insurance subsidiaries, result in increased costs and affect our financial condition. Group supervision by the BMA, including any future holding company designation, could affect our prescribed capital requirements, the terms of current and future debt, intercompany capital transactions, ratings and may significantly increase our cost of regulatory compliance.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
Our business is subject to certain laws and regulations relating to sanctions and foreign corrupt practices, the violation of which could adversely affect our operations.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedRisk Factors
We must comply with all applicable economic sanctions and anti-bribery laws and regulations of the United States and other jurisdictions. U.S. laws and regulations that may be applicable to us include economic trade sanctions laws and regulations administered by the U.S. Treasury’s Office of Foreign Assets Control, as well as certain laws administered by the U.S. Department of State. The sanctions laws and regulations of non-U.S. jurisdictions in which we operate may differ from those of the United States and these differences may also expose us to sanctions violations. In addition, we are subject to the Foreign Corrupt Practices Act and other anti-bribery laws that generally prohibit corrupt payments or improper gifts to non-U.S. governments or officials. It is possible that personnel could fail to comply with applicable laws and regulations. In such event, we could be exposed to civil penalties, criminal penalties and other sanctions, including fines or other punitive actions, which could damage our business and reputation, and could adversely affect our financial condition and results of operations.
Read it in 10-K 2026-02-26 at sec.gov ↗
RemovedRisk Factors
We are generally less reliant on the purchase of reinsurance than many of our competitors, in part because of our strategic emphasis on underwriting discipline and management of the cycles inherent in our business. We try to separate our risk-taking process from our risk mitigation process to avoid developing too great a reliance on reinsurance. With the expansion of the capital markets into insurance linked financial instruments, we increased our use of capital market products for catastrophe reinsurance. In addition, we have increased some of our quota share contracts with larger retrocessionaires. The percentage of business that we reinsure may vary considerably from year to year, depending on our view of the relationship between cost and expected benefit for the contract period.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
currencies; as of December 31, 2024, we maintained approximately 22.7% of our investment portfolio in investments denominated in non-U.S. currencies.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
In January 2025, James Williamson, Executive Vice President and Chief Operating Officer, was appointed President and CEO and member of the Board of Directors after the departure of our former President and CEO, Juan Andrade.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
Special considerations apply to our Bermuda operations. Under Bermuda law, non-Bermudians, other than spouses of Bermudians and individuals holding permanent or working resident certificates, are not permitted to engage in any gainful occupation in Bermuda without a work permit issued by the Bermuda government. A work permit is only granted or extended if the employer can show that, after a proper public advertisement, no Bermudian, spouse of a Bermudian or individual holding a permanent or working resident certificate is available who meets the minimum standards reasonably required for the position. The Bermuda government places a six-year term limit on individuals with work permits, subject to specified exemptions for persons deemed to be key employees of businesses with a significant physical presence in Bermuda. Currently, all our Bermuda-based professional employees who require work permits have been granted permits by the Bermuda government that expire at various times between March 2025 and March 2030.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedRisk Factors
market products and new company formations provide additional sources of reinsurance and insurance capacity, which could reduce our market share.
Read it in 10-K 2025-02-27 at sec.gov ↗
RewordedRisk Factors
For example, in for the quarter ended year ended, December 31, 2024, 2025, the Company increased its loss reserves by $1.7 billion, pre-tax, $657 million, pre-tax and net of reinsurance, primarily driven by net unfavorable development on prior year reserves from elevated loss experience in excess casualty and U.S. casualty insurance liability lines of business. primarily on accident years 2022-2024.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
In October 2017, the NAIC adopted the The NAIC”s Insurance Data Security Model Law (“IDSML”), (the “IDSML”), which was intended to establish the established standards for data security and for the investigation and notification of data breaches applicable to insurance licensees has been adopted in states adopting such law. 28 states.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
Regulation of cybersecurity, privacy and data protection, operational resiliency and artificial intelligence AI has also developed globally. globally including but not limited to Bermuda’s Personal Information Protection Act, the UK’s Data Protection Act and EU’s General Data Protection Regulation.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
The fair value of our invested assets and associated investment income may fluctuate depending on various factors including including, but not limited to the effects of economic events and conditions, conditions; governmental policies, policies; changes in interest rates rates, currency exchange rates, inflation and credit spreads spreads; credit ratings; loss frequency and severity; and market volatility.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
We cannot provide total assurance that these processes will Our processes, people and systems may not effectively identify or control all risks, or that and our employees and third-party agents will may not effectively execute them.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
However, the Bermuda courts ordinarily would be expected to follow English case law precedent, which would permit a shareholder to bring an action in the name of Group to remedy a wrong done
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
Our investment portfolio is subject to the risk of loss due to default or deterioration in the credit quality. quality, financial condition or future recovery prospects of the underlying issuers of our fixed income securities.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
We may experience a disruption in business continuity as a result of pandemic and public health crises, geopolitical risks including armed conflict and civil unrest, terrorist events, natural disasters, cyber-attacks cyber or other information technology related-incidents affecting technology services, supply-chain disruptions, as well as governmental, business and societal responses to such events, such as restrictions on public gatherings, sanctions, trade restrictions, restrictions and increased unemployment and supply chain disruptions. unemployment.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
The failure of one or more of our reinsurers reinsurers, including but not limited to the counterparties to the adverse development cover reinsurance agreements, to honor their obligations to us in a timely fashion would impact our cash flow and reduce our net income and could cause us to incur a significant loss.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
Our investment values and The value of our overall investment income could decline due to changed conditions in the financial markets. markets and prevailing general economic conditions.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
We While we are not aware of a cybersecurity incident that materially affected the Company, including its business strategy, results of operations or financial condition. condition, a future cybersecurity incident could have a material impact on us.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedRisk Factors
For example, the New York State Department of Financial Services has an applicable regulation pertaining to cybersecurity for all banking and insurance entities under its jurisdiction, effective as of March 1, 2017 and amended on November 1, 2023. jurisdiction.
Read it in 10-K 2026-02-26 at sec.gov ↗
Quiet changesRisk Factors
The frequency and/or severity of some catastrophic events may be impacted in the future by the continued effects of climate change.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
Effective October 1, 2025, the Company, through its subsidiaries Everest Re and Bermuda Re (the “Ceding Companies”), entered into adverse development reinsurance agreements with State National Insurance Company, Inc. and MS Transverse Insurance Company (collectively the “Reinsurers”). The Reinsurance Agreements are supported on a retrocessional basis by Longtail Re, an affiliate of Stone Ridge Capital.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
The agreements reinsure potential adverse loss development for accident years 2024 and prior arising from substantially all of the Ceding Companies’ North American liabilities within the Insurance and Other segments (“Subject Business”) up to a gross limit of $1.2 billion. Certain liabilities are excluded from the subject business, including among others those related to the Asbestos and Environmental (“A&E”) reserves included in the Other segment. The carried reserves held for the Subject Business were $5.4 billion as of September 30, 2025 and $5.0 billion as of December 31, 2025, respectively.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
The adverse development cover (“ADC”) is composed of three layers. The first layer is an “in the money” layer whereby the ADC attachment point was $1,250 billion below the Company’s North American Insurance and Other segment liability subject reserves of $5.4 billion held as of September 30, 2025. The second layer is $700 million in excess of the $5.4 billion. The Company transferred $1,250 million of in-the-money reserves in consideration for the first two layers upon closing of the transaction. The third layer is $500 million, for which the Company paid approximately $122 million of consideration upon closing of the transaction. The Company has a co-participation of $100 million in each of the second and third layers. For more details, see Form 8-K filed with the SEC on October 27, 2025 and the adverse development reinsurance agreements attached thereto and incorporated by reference in Exhibits 10.59 and 10.60. At December 31, 2025, the total covered losses ceded to State National Reinsurer were $1,253 million. The aggregated unexpired limit was $597 million for State National Reinsurer and $400 million for MS Transverse Reinsurer, respectively.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
On October 26, 2025, the Company entered into an agreement with American International Group, Inc. (“AIG”) to sell the renewal rights for certain lines of commercial retail insurance business written by the Company in the U.S., U.K. and Asia Pacific, for an aggregate purchase price of $252 million. AIG paid the Company $30 million for originating and structuring the transaction.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
In addition, on October 26, 2025, the Company entered into an agreement with AIG to sell the renewal rights for certain lines of commercial retail insurance business written by the Company in certain countries in the European Union, for an aggregate purchase price of $49 million.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
Under the agreements, AIG agreed to pay the Company a total of $10 million per month for nine months starting January 1, 2026 for specified transition services. For more details, see Form 8-K filed with the SEC on October 28, 2025 and the Master Transaction Agreements incorporated by reference in Exhibit 10.59.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
These transactions sharpen the Company’s focus on its core global reinsurance business as well as its global wholesale and specialty insurance businesses. The renewal rights of these businesses total an estimated $2 billion of aggregate gross premiums written.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
Years ended December 31, (Dollars in millions) 2025 2024 Mt. Logan cell income $ 7 $ 8 Foreign currency exchange income (expense) (210) 58 Gain on pension plan settlement 27 10 Gain (loss) from sale of renewal rights 127 — Gain (loss) from sale of sports and leisure business — 40 Other 3 6 Total other income (expense) $ (45) $ 121
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
On July 4, 2025, the One Big Beautiful Bill was signed into law. The One Big Beautiful Bill did not have a material impact on our results of operations, financial condition, or cash flows upon enactment in 2025, and we do not expect it to have a material impact in the future; however, we will continue to evaluate the impact of the One Big Beautiful Bill.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
On January 20, 2025, President Trump issued a memorandum announcing that the OECD framework has “no force or effect in the United States” and disavowing any commitments previously made by the United States with respect to the framework. The memorandum also directs the U.S. Secretary of the Treasury to develop and present to President Trump a list of protective measures or other options towards foreign countries that are either not in compliance with any tax treaty with the United States or have tax rules that are “extraterritorial or disproportionately affect American companies.” The possible uneven enactment of the OECD framework by various jurisdictions coupled with the United States’ response to these rules could cause uncertainties to and increases in our income taxes.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
On January 5, 2026, the OECD released Administrative Guidance containing the side-by-side (SbS) package on the OECD’s global minimum tax. The SbS Administrative Guidance introduced, among other things, new safe harbors, including a SbS safe harbor for multi-national groups headquartered in certain eligible jurisdictions, now limited to the US. Qualification for this safe harbor would exempt companies from the OECD global minimum tax. We expect additional Administrative Guidance in the future providing implementation guidance on the SbS. Accordingly, the OECD’s global minimum tax could be subject to further changes that will continue to cause uncertainties related to income taxes payable by our company.
Read it in 10-K 2026-02-26 at sec.gov ↗
AddedMD&A
We have established reserves for uncollectible balances based on our assessment of the collectability of the outstanding balances. The allowance for uncollectible reinsurance reflects management’s best estimate of reinsurance cessions that may be uncollectible in the future due to reinsurers’ unwillingness or inability to pay. The allowance for uncollectible
Read it in 10-K 2026-02-26 at sec.gov ↗
RemovedMD&A
As a global leader with a 50-year track record, we are a preferred Reinsurance partner in the markets we serve, and with
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
our growing Insurance franchise we strive to deliver consistent value to all our stakeholders. We continue to grow and develop our Insurance business, investing in our global platform and strengthening our portfolio and its potential to deliver on our customer promise.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted. We have evaluated the tax provisions of the IRA, the most significant of which are the corporate alternative minimum tax and the share repurchase excise tax, and do not expect the legislation to have a material impact on our results of operations.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
During 2023, the Company refined its premium estimation methodology for its risk attaching reinsurance contracts within its Reinsurance segment to continue to recognize gross written premium over the term of the treaty, albeit over a different pattern than what was previously used. The refined estimate resulted in an increase of gross written premium for the twelve months ended December 31, 2023, and has further aligned the estimation methodology across the
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
reinsurance division globally. This change had no impact on the total written premium to be recognized over the term of the treaties. There was no impact on net earned premium and therefore, no impact on income from continuing operations, net income or any related per-share amounts.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
Premiums. Gross written premiums decreased from $289 million in 2023 to $212 million in 2024. Net written premiums decreased from $225 million in 2023 to $167 million in 2024. Gross written premium is primarily coming from the sports and leisure business. Premiums earned decreased from $225 million in 2023 to $197 million in 2024. The decreases in gross written premiums, net written premiums and premiums earned are due to the lines of business included in this segment primarily being in run-off, except for a limited number of renewed and new policies written on the Company's paper by the purchaser of the sports and leisure business sold in October 2024, for a finite period of time post-closing.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
Segment Expenses. Commission and brokerage and other underwriting expenses remained relatively flat year over year.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
Our carried loss and LAE reserves represent management’s best estimate of our ultimate liability for unpaid claims. We continuously re-evaluate our reserves, including re-estimates of prior period reserves, taking into consideration all available information and, in particular, newly reported loss and claim experience. Changes in reserves resulting from
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
common stock dividend of $2.00 per share. The common stock dividend was paid on December 13, 2024 for holders of record as of November 27, 2024.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
SEC Registrants are required to clarify and expand upon the existing financial statement disclosure requirements for derivative financial instruments, derivative commodity instruments and other financial instruments (collectively, “Market Sensitive Instruments”). We do not generally enter into Market Sensitive Instruments for trading purposes.
Read it in 10-K 2025-02-27 at sec.gov ↗
RewordedMD&A
At December 31, 2024, 2025, we had net unrealized gains on our fixed maturity securities, net of tax, of $5 million, compared to net unrealized losses on our available for sale fixed maturity securities, net of tax, of $849 million, compared to net unrealized losses on our available for sale fixed maturity securities, net of tax, of $723 million at December 31, 2023. 2024.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
The $893 million of current year catastrophe losses of $772 million in 2024 related primarily to Hurricane Milton ($275 ($320 million), Hurricane Helene ($94 million), Hurricane Beryl ($64 million), Hurricane Debby ($55 million), Hurricane Beryl ($54 ($56 million), the 2024 European flood Boris ($50 ($56 million), the 2024 Baltimore bridge collapse ($50 ($55 million), the third quarter 2024 Calgary Alberta storms ($45 million) and ($54 million), the 2024 Brazil Floods ($41 million), the 2024 Dubai floods ($32 million), the 2024 Germany floods ($31 million), the 2024 New Caledonia Riots ($31 million), the 2024 Germany floods ($28 million) and the 2024 Taiwan earthquake ($25 ($27 million), with the remaining losses resulting from various events.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
The current year catastrophe losses of $120 $41 million primarily related to Hurricane Milton ($44 Melissa ($16 million), Hurricane Helene ($29 million), Hurricane Beryl ($10 the first quarter 2025 Myanmar earthquake ($8 million) and the third quarter 2024 Calgary Alberta storms ($9 2025 Southern California wildfires ($7 million), with the remaining losses resulting from various events.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
For smaller events including localized severe weather events such as windstorms, hail, ice, snow, flooding, freezing and tornadoes, which are not necessarily prominent, public occurrences, we initially place greater reliance on catastrophe bulletins published by statistical modeling agencies to assist in determining what events occurred during the reporting period than we do for large events.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
This unfavorable development in In addition, the Reinsurance segment was largely recorded unfavorable development on prior year, primarily related to aviation losses associated with the Russia/Ukraine war and casualty reserves, partially offset by favorable development booked on well-seasoned reserves in the property and mortgage lines.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
Years Ended December 31, (Dollars in millions) 2025 2024 2023 2022 Fixed maturities $ 1,572 $ 1,481 $ 1,153 $ 742 Equity securities 4 3 3 16 Short-term investments and cash 169 195 140 28 Other invested assets Limited partnerships 277 206 122 75 Other 124 104 59 29 Gross investment income before adjustments 2,146 1,989 1,477 890 Funds held interest income (expense) 26 26 10 2 Future policy benefit reserve income (expense) (1) (1) — (1) Gross investment income 2,172 2,013 1,486 892 Investment expenses 48 59 53 62 Net investment income $ 2,124 $ 1,954 $ 1,434 $ 830
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
The change was primarily the result of fluctuations in foreign currency exchange rates, in particular, the movement in the Euro and British Pound Sterling, partially offset by the gain from the sale of the sports and leisure business and gain from pension plan curtailment. renewal rights.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
The loss ratio component increased by 11.7 points in 2024 over the same period last year decrease was mainly due to an increase a decrease of $423 $73 million in current year catastrophe losses and lower unfavorable prior year development on attritional losses.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
The decrease increase was mainly due to higher Insurance segment expenses driven by strategic actions, offset by Reinsurance segment continued leverage against its premium base, offset by Insurance segment expenses driven by continued international growth. base.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
In During 2024, we repurchased 536,469 of our common shares at a cost of $200 million in the open market and paid $334 million in common share dividends to adjust our capital position and enhance long-term expected returns to our shareholders.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
Pursuant to the Fixing America’s Surface Transportation Act Modernization Comparisons between 2024 and Simplification of Regulation S-K, comparisons between 2023 and 2022 have been omitted from this Form 10-K but can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Form 10-K for the year ended December 31, 2023. 2024.
Read it in 10-K 2026-02-26 at sec.gov ↗
RewordedMD&A
The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned. earned, the impact of the Washington D.C. aviation accident during the first quarter and reserve strengthening on the U.S. casualty business.
Read it in 10-K 2026-02-26 at sec.gov ↗
Quiet changesMD&A
The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period period, whereas written premiums are generally recorded at the initiation of the coverage period.
Read it in 10-K 2026-02-26 at sec.gov ↗
Quiet changesMD&A
We Generally, we mitigate foreign exchange exposure by generally matching the currency and duration of our assets to our corresponding operating liabilities.
Read it in 10-K 2026-02-26 at sec.gov ↗
