Marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Risk Factors 216 words changed in this paragraph; it is 53% similar to last year's version.
If If, as a result of a cyber-attack (the risk of which could be exacerbated by geopolitical tensions) or otherwise, we experience difficulties with technology, data and network security (including as a result of cyber attacks), security, outsourcing relationships or cloud-based technology, our ability to conduct our business could be negatively impacted. A shut-down of, or inability to access, one or more of our facilities (including our primary data processing facility); a power outage; or a failure of one or more of our systems could significantly impair our ability to perform necessary business functions on a timely basis. In the event of a computer virus cyber-attack, malware or natural or other disaster, our systems could be inaccessible for an extended period of time, including as a result of hostile actions taken by cyber criminals, nation-states or terrorist organizations. In addition, because our systems increasingly interface with and depend on third-party systems, including cloud-based, cloud-based systems, we could experience service denials or failures of controls if demand for our service exceeds capacity or a third-party system fails or experiences an interruption. Business interruptions and failures of controls could also result if our internal systems do not interface with each other as intended or if changes to such systems or our other business processes, such as new payment technologies, are not effectively implemented. Business continuity can also be disrupted by an event, such as a pandemic, that renders large numbers of a workforce unable to work as needed, particularly at critical locations. If our business continuity plans do not sufficiently address a business interruption, system failure or service denial, this could result in a deterioration of our ability to write and process new and renewal business, provide customer service, pay claims in a timely manner or perform other necessary business functions. In addition, should internet disruptions occur, or frustration with our business platforms or distribution initiatives develop among our independent agents and brokers, any resulting loss of business could materially and adversely affect our future business volume and results of operations.
Source: Item 1A, 10-K 0000086312-26-000065 vs Item 1A, 10-K 0000086312-25-000012
MD&A 191 words changed in this paragraph; it is 74% similar to last year's version.
Losses Incurred / Unfavorable (Favorable) Estimated Ultimate Losses at as of Prior Year Reserve Development for the Year Ended December 31, December 31, (in millions, pre-tax and net of reinsurance)(1) reinsurance) 2025 2024 2023 2022 2025 2024 2023 2022 2022 PCS Serial Number: 33 — Severe wind and hail storms (4) 1 137 134 138 137 35 — Severe wind and hail storms (3) — 184 181 184 184 43 — Severe wind and hail storms 1 (6) 122 117 116 122 61 — Hurricane Ian (1) (76) 227 150 151 227 73 — Winter storm 11 158 512 681 670 512 2023 PCS Serial Number: 25 — Severe wind and hail storms (5) (6) 153 n/a 142 147 153 n/a 32 — Severe wind and hail storms (6) (5) 140 n/a 129 135 140 n/a 33 — Severe wind and hail storms (2) (10) 199 n/a 187 189 199 n/a 35 — Severe wind and hail storms 11 — 140 n/a 151 140 140 n/a 38 — Severe wind and hail storms 3 3 110 n/a 116 113 110 n/a 42 — Severe wind and hail storms — 4 133 n/a 137 137 133 n/a 48 — Severe wind and hail storms 3 (6) 150 n/a 147 144 150 n/a 49 — Severe wind and hail storms (6) 2 133 n/a 129 135 133 n/a 51 — Severe wind and hail storms 8 (34) 265 n/a 239 231 265 n/a 63 — Severe wind and hail storms — 5 125 n/a 130 130 125 n/a 75 — Severe wind and hail storms (2) (17) 190 n/a 171 173 190 n/a 2024 PCS Serial Number: 26 — Severe wind and hail storms (10) 261 n/a 251 261 n/a 261 39 — Severe wind and hail storms (7) 250 n/a 243 250 n/a 42 — Severe wind and hail storms (12) 161 n/a 149 161 n/a 44 — Severe wind and hail storms (1) 171 n/a 170 171 n/a 45 — Severe wind and hail storms 15 159 n/a 174 159 n/a 46 — Severe wind and hail storms 9 182 n/a 191 182 n/a 61 — Severe wind and hail storms (17) 144 n/a 127 144 n/a 77 — Hurricane Helene (68) 733 n/a 665 733 n/a 2025 11 — California wildfire – Palisades fire 1,344 n/a n/a 1,344 n/a n/a 12 — California wildfire – Eaton fire 377 n/a n/a 377 n/a n/a 24 — Severe wind and hail storms 337 n/a n/a 337 n/a n/a 29 — Severe wind and hail storms 137 n/a n/a 137 n/a n/a 37 — Severe wind and hail storms 227 n/a n/a 227 n/a n/a 39 — Severe wind and hail storms 250 101 n/a n/a 250 101 n/a n/a 42 43 — Severe wind and hail storms 161 97 n/a n/a 161 n/a n/a 44 — Severe wind and hail storms 171 n/a n/a 171 97 n/a n/a 45 — Severe wind and hail storms 159 107 n/a n/a 159 107 n/a n/a 46 — Severe wind and hail storms 182 n/a n/a 182 n/a n/a 61 — Severe wind and hail storms 144 n/a n/a 144 n/a n/a 77 — Hurricane Helene 733 n/a n/a 733 n/a n/a
Source: Item 7, 10-K 0000086312-26-000065 vs Item 7, 10-K 0000086312-25-000012
Accounting Policies 34 words changed in this paragraph; it is 70% similar to last year's version.
Intangible assets that are deemed to have a finite useful life are amortized over their useful lives. The carrying amount of intangible assets with a finite useful life is regularly reviewed for indicators of impairment in value. Impairment is recognized only if the carrying amount of the intangible asset is not recoverable from its undiscounted cash flows and is measured as the difference between the carrying amount and the fair value of the asset.
Source: Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000086312-26-000065 vs Item 8, Note 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0000086312-25-000012
Legal Proceedings 12 words changed in this paragraph; it is 97% similar to last year's version.
In the ordinary course of its insurance business, the Company has received and continues to receive claims for insurance arising under policies issued by the Company asserting alleged injuries and damages from asbestos- and environmental-related asbestos--related exposures that are the subject of related coverage litigation. The Company is defending asbestos- and environmental-related asbestos-related litigation vigorously and believes that it has meritorious defenses; however, the outcomes of these disputes are uncertain. In this regard, the Company employs dedicated specialists and comprehensive resolution strategies to manage asbestos and environmental loss exposure, including settling litigation under appropriate circumstances. Currently, it is not possible to predict legal outcomes and their impact on future loss development for claims and litigation relating to asbestos and environmental claims. Any such development could be affected by future court decisions and interpretations, as well as future changes, if any, in applicable legislation. Because of these uncertainties, additional liabilities may arise for amounts in excess of the Company’s current insurance reserves. In addition, the Company’s estimate of ultimate claims and claim adjustment expenses may change. These additional liabilities or changes in estimates, or a range of either, cannot now be reasonably estimated and could result in income statement charges that could be material to the Company’s results of operations in future periods.
Source: Item 3, via Note 17 – CONTINGENCIES, COMMITMENTS AND GUARANTEES, 10-K 0000086312-26-000065 vs Item 3, via Note 17 – CONTINGENCIES, COMMITMENTS AND GUARANTEES, 10-K 0000086312-25-000012
