AddedRisk Factors
regulatory regimes of the jurisdictions outside the EU in which we have insurance or reinsurance companies domiciled to be “equivalent” to Solvency II.
The 10-K against last year's
129 changes: 17 added, 13 removed, 98 reworded, 1 quiet changes
10-K 0000011544-26-000005 (2026-02-27) vs 10-K 0000011544-25-000005 (2025-02-24) Not compared: Accounting Policies.
The redline
The paragraph that changed most in each section
Marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 147 words changed in this paragraph; it is 63% similar to last year's version.
The Company reported net income of $1,779 million in 2025 and $1,756 million in 2024 and $1,381 million in 2023. 2024. The $375 $23 million increase in net income reflected an after-tax increase in net investment income of $217 $75 million primarily due to higher interest rates, a larger fixed maturity securities portfolio and increased investment income associated with our Argentine inflation-linked securities, from investment funds, an after-tax increase in foreign currency gains underwriting income of $65 $29 million mainly due to strengthening growth in premium rates, a reduction of $18 million in tax expense due to a change in the U.S. dollar against other currencies in 2024, effective tax rate, an after-tax increase in net investment gains of $55 million due to change in market value of equity securities and impairment loss recognized on a real estate investment in 2023, an after-tax increase in underwriting income of $37 million mainly due to growth in premium rates, an after-tax reduction in corporate expenses of $15 $11 million, an after-tax increase of $4 million in noncontrolling interests, an after-tax increase in profits from non-insurance businesses of $3 $8 million and an after-tax increase in profit from insurance service businesses of $3 $5 million, partially offset by an after-tax increase in foreign currency losses of $24 $94 million in tax expense due to a change the U.S. dollar weakening against other major currencies in the effective tax rate. 2025, an after-tax increase in corporate expenses of $22 million and an after-tax decrease in income of $7 million related to minority interests. The number of weighted average diluted shares decreased by 6.7 3.4 million for 2024 2025 compared to 2023, 2024, mainly reflecting shares repurchased in 2025 and 2024.
Source: Item 7, 10-K 0000011544-26-000005 vs Item 7, 10-K 0000011544-25-000005
Risk Factors 115 words changed in this paragraph; it is 53% similar to last year's version.
In addition, AI technologies may be misused, and that risk is increased by the relative newness of the technology, the speed at which it is being adopted, and ongoing uncertainty with respect to the laws, regulations, and standards governing its development and deployment federally, across states, and internationally. Such misuse, and a realization of the previously mentioned risks, could negatively impact our reputation, financial condition and results of operations, the demand for our products and services, otherwise cause competitive harm, and/or draw adverse legal and regulatory scrutiny. Moreover, because some AI technologies are relatively new, such as generative AI, AI are relatively new and rapidly evolving, many of the potential risks regarding their use are currently unknown. Our investment in and use of AI technologies and the introduction of new products and services may also expose us to new or enhanced risks, particularly in areas where we have less experience or our existing internal control systems may be insufficient, which could require us to make substantial expenditures or subject us to legal liability, heightened regulatory scrutiny and brand or reputational harm.
Source: Item 1A, 10-K 0000011544-26-000005 vs Item 1A, 10-K 0000011544-25-000005
Every change, by type
Sentences and paragraphs added, removed or reworded
Sentences and paragraphs of WRB's Risk Factors and MD&A, 10-K 2026-02-27 against 10-K 2025-02-24. Each links to the text at sec.gov.
AddedRisk Factors
Adverse economic factors, including recessions, inflation, periods of high unemployment, the impact of tariffs or lower economic activity could result in the sale of fewer policies than expected or an increase in frequency or severity of claims and premium defaults or both, which, in turn, could affect our growth and profitability.
AddedRisk Factors
Numerous factors, such as business revenue, economic conditions, the impact of tariffs, the volatility and strength of the capital markets and inflation can affect the business and economic environment. These same factors affect our ability to generate revenue and profits. In an economic downturn that is characterized by higher unemployment, declining spending and reduced corporate revenues, the demand for insurance products is generally adversely affected, which directly affects our premium levels and profitability. Negative economic factors may also affect our ability to receive the appropriate rate for the risk we insure with our policyholders and may adversely affect the number of policies we can write, including with respect to our opportunities to underwrite profitable business. In an economic downturn, customers may have less need for insurance coverage, cancel existing insurance policies, modify their coverage or not renew the policies they hold. Existing policyholders may exaggerate or even falsify claims to obtain higher claims payments. These outcomes would reduce our underwriting profit to the extent these factors are not reflected in the rates we charge.
AddedRisk Factors
Given the inherent uncertainty of models, the usefulness of such models as a tool to evaluate risk is subject to a high degree of uncertainty that could result in actual losses that are materially different than our estimates. A deviation from our loss estimates may adversely impact, perhaps significantly, our financial results.
AddedRisk Factors
Our approach to risk management relies on subjective variables that entail significant uncertainties. For example, we consider estimates of probability of exceedance and deterministic scenarios for certain events that are generated by computer-run models. In addition, we use historical data and scenarios, among other factors, to analyze and manage credit and interest rate risks in our investment portfolio. It is possible that actual events could give rise to losses materially different to those estimated by these models.
AddedRisk Factors
Small changes in assumptions, which depend heavily on our judgment and foresight, can have a significant impact on the modeled outputs. For example, catastrophe models that simulate loss estimates based on a set of assumptions are important tools used to estimate our exceedance probability curves. These assumptions address a number of factors that impact loss potential including, but not limited to, the characteristics of a given natural catastrophe event; the increase in claim costs resulting from limited supply of labor and materials needed for repairs following a catastrophe event (demand surge); the types, function, location and characteristics of exposed risks; susceptibility of exposed risks to damage from an event with specific characteristics; and the financial and contractual provisions of the (re)insurance contracts that cover losses arising from an event. We run many model simulations in order to understand the impact of these assumptions on a catastrophe’s loss potential.
AddedRisk Factors
Furthermore, there are risks associated with catastrophe events, which are either poorly represented or not represented at all by catastrophe models. Each modeling assumption or un-modeled risk introduces uncertainty into estimated modeled losses that management must consider. These uncertainties can include, but are not limited to, the following:
AddedRisk Factors
•The models do not address all the possible hazard characteristics of a catastrophe peril (e.g. the precise path and wind speed of a hurricane);
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AddedRisk Factors
•The models may not accurately reflect a risk's vulnerability or susceptibility to damage for a given event characteristic;
AddedRisk Factors
•The models may not accurately represent loss potential to insurance or reinsurance contract coverage limits, terms and conditions; and
AddedRisk Factors
•The models may not accurately reflect the impact on the economy of the area affected or the financial, judicial, political, or regulatory impact on insurance claim payments during or following a catastrophe event.
AddedRisk Factors
As a result of these factors and contingencies, our reliance on assumptions and data used to estimate exceedance probability curves and modeled scenario losses is subject to a high degree of uncertainty that could result in actual losses that are materially different from our modeled estimates and our financial results could be adversely affected.
AddedMD&A
(2)Cash and cash equivalents includes trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.