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.
WRBW. R. Berkley Corporation
- Headquarters
- Greenwich, CT
- CEO
- William R. Berkley Jr
- Next results
- around Jan 25, 2027
10-K 0000011544-26-000005 (2026-02-27) vs 10-K 0000011544-25-000005 (2025-02-24)
| Section | Compared text | Words now | Changed |
|---|---|---|---|
| Risk Factors | Item 1A | 9,682 | 13.2% |
| MD&A | Item 7 | 11,718 | 12.5% |
| Legal Proceedings | Item 3 | 151 | 0.0% |
| Accounting Policies | Item 8 (note not found) | 0 | not compared |
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 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 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.
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
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);
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.
RemovedRisk Factors
RemovedRisk Factors
RemovedRisk Factors
RemovedRisk Factors
RemovedRisk Factors
RewordedRisk Factors
Additionally, our capital requirements and compliance requirements may be adversely affected if the European Commission does not deem the insurance regulatory regimes of the jurisdictions outside the EU in which we have insurance or reinsurance companies domiciled to be “equivalent” to Solvency II.
RewordedRisk Factors
As described in “International Regulation” above, the EU has recently amended adopted amendments to certain provisions in Solvency II, which EU member states will implement are in the process of implementing in their domestic regulation over the next two years. 2025 and 2026.
RewordedRisk Factors
The values of these investments are subject to fluctuation based on changes in the economy and interest rates in general and the related asset valuations in particular.
RewordedRisk Factors
Certain provisions in our organizational and other documents (such as voting and other arrangements with Mitsui Sumitomo Insurance Co., Ltd.) may have the effect of hindering, delaying or preventing third party takeovers and thus may prevent our stockholders from receiving premium prices for their shares in an unsolicited takeover or make it more difficult for third parties to replace our current management.
RewordedRisk Factors
RewordedRisk Factors
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.
RewordedRisk Factors
RewordedRisk Factors
Our financial results could be adversely affected by acquired businesses not performing as projected, unforeseen liabilities, routine and unanticipated transaction-related charges, diversion of management time and resources to acquisition integration challenges or growth strategies, loss of key employees, challenges in integrating information technology systems of acquired companies with our own, amortization of expenses related to intangibles, charges for impairment of long-term assets or goodwill and indemnification.
RewordedRisk Factors
Although the historical rates of default on state and municipal securities have been relatively low, our state and municipal fixed maturity securities could be subject to a higher risk of default or impairment due to declining municipal tax bases and revenue. revenue, particularly in the event of a recession.
RewordedRisk Factors
Our failure to effectively protect sensitive personal and/or proprietary information, whether owing to breaches of our own systems or those of our vendors and other third parties, could result in significant monetary and reputational damages, material adverse effects to our financial condition, costly litigation, or other regulatory enforcement actions.
RewordedRisk Factors
There may be certain asset classes that were in active markets with significant observable data that become illiquid due to the then current financial environment.
RewordedRisk Factors
New or emerging pandemics, whether related to COVID-19 or otherwise, may materially and adversely affect our results of operations, financial position and liquidity in liquidity, including the future. following:
Quiet changesRisk Factors
To the extent that our reinsurers have excluded coverage for certain terrorist acts or have priced this coverage at rates that make purchasing such coverage economically infeasible, we may not have reinsurance protection and could be exposed to potential potentially significant losses as a result of any acts of terrorism.
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.
RemovedMD&A
RemovedMD&A
RemovedMD&A
RemovedMD&A
RemovedMD&A
RemovedMD&A
RemovedMD&A
RemovedMD&A
RewordedMD&A
Lloyd’s of London A+ $356,338 $358,718 Partner Re A+ 314,891 AA- 295,800 Munich Re AA- 287,864 AA 250,080 Berkshire Hathaway AA+ 274,182 246,729 Hannover Re Group AA- 222,719 222,358 Renaissance Re A+ 215,300 217,251 Swiss Re AA- 159,462 132,731 Liberty Mutual A 120,381 124,916 Everest Re A+ 93,223 86,017 Arch Capital AA- 76,095 Axis Capital A+ 83,756 Arch Capital Group A+ 67,357 70,166 Sompo Holdings Group A+ 59,074 64,383 Fairfax Financial AA- 60,919 Nationwide Corp A+ 60,342 TOA Reinsurance A 58,585 Nationwide Group A+ 52,111 51,290 Korean Re A 51,233 A+ 45,858 Axa Insurance AA- 50,002 TOA RE A 47,501 Markel Corp Group A 42,982 42,361 MS & AD Insurance Group A+ 38,179 Markel Corp A 34,680 34,949 Chubb AA 27,873 Helvetia Holdings Group A+ 29,490 Chubb Group AA 26,708 25,542 Other reinsurers:
RewordedMD&A
Net investment income increased 27% 7% to $1,429 million in 2025 from $1,333 million in 2024 from $1,053 million in 2023 due primarily to a $331 $47 million increase in income from fixed maturity securities mainly driven by higher interest rates, a larger fixed maturity securities portfolio and investment income associated with our Argentine inflation-linked securities (see below for further discussion), partially offset by portfolio, a $28 $39 million decrease increase in income from investment funds primarily due to transportation funds and financial service services funds, a $12 $5 million decrease increase in arbitrage trading account, a $5 million increase in real estate, estate and a $7 $1 million decrease increase from equity securities and securities, partially offset by a $4 $1 million increase in investment expenses.
RewordedMD&A
The pre-tax change in allowance for expected credit losses on investments reflected in net investment gains, decreased by $2 million ($1 million after-tax) in 2025 reflecting improved pricing related to fixed maturity securities and the redemption of one loan in the loan receivable portfolio, and $38 million ($30 million after-tax) in 2024 due to improved pricing associated with foreign government securities and corporate securities, and increased by $498 thousand ($393 thousand after-tax) in 2023. securities.
RewordedMD&A
($ in thousands) Number of Aggregate Unrealized Securities Fair Value Loss Foreign government 50 67 $ 138,388 151,002 $ 157,424 165,721 Corporate 19 50,525 2,922 24 43,968 814 State and municipal 6 28,150 1,921 5 28,958 1,047 Mortgage-backed securities 17 3,684 206 Asset-backed securities 1 9 1 14 2,244 113 Total 93 110 $ 220,756 226,172 $ 162,474 167,695
RewordedMD&A
The higher lower effective income tax rate for the year, as compared to 2023, 2024, was primarily due to the an improved geographical mix of earnings and larger amounts being subject benefits attributable to tax at a rate greater than the U.S. statutory rate, which was partially offset by tax benefits related to tax-exempt investment income and equity-based compensation.
RewordedMD&A
Common stocks 760,167 2.5 742,113 2.2 Preferred stocks 443,621 1.5 616,088 1.9 Total equity securities available for sale 1,203,788 4.0 1,358,201 4.1 Cash and cash equivalents 1,974,747 6.6 (2) 2,485,952 7.5 Investment funds 1,468,246 4.9 1,361,802 4.1 Real estate 1,291,455 4.3 1,279,748 3.9 Arbitrage trading account 1,122,599 3.8 1,221,103 3.7 Loans receivable 405,453 1.4 418,913 1.3 Total investments $29,864,153 $33,173,381 100.0%
RewordedMD&A
The favorable development for commercial property was mainly associated with both short tail lines of business and auto physical damage related to the 2023 2024 accident year, and resulted from better than expected favorable settlements for of both catastrophe related and non-catastrophe claims. property claims below our expectations.
RewordedMD&A
The adverse development was driven by the commercial other liability and auto liability and other liability occurrence lines of business, and was largely partially offset by favorable development for workers’ compensation, professional liability, products liability, and commercial property short tail lines of business. business, auto physical damage, professional liability and workers’ compensation.
RewordedMD&A
Cash flow provided from operating activities increased decreased to $3,583 million in 2025 from $3,678 million in 2024 from $2,929 million in 2023, 2024, primarily due to an increase in premium receipts partially offset by increased loss and loss expense payments. payments partially offset by increased premium receipts.
RewordedMD&A
Industrial 3,667,199 12.3 3,648,534 11.0 Financial 3,320,513 11.1 3,483,068 10.5 Utilities 778,694 2.6 1,314,221 3.9 Other 651,235 2.2 241,588 0.7 Total corporate 8,417,641 28.2 8,687,411 26.1 Foreign government 1,755,325 5.9 1,875,589 5.6 Total fixed maturity securities 22,397,865 75.0 25,047,662 75.4 Equity securities available for sale:
RewordedMD&A
Catastrophe losses, net of reinsurance recoveries, were $336 million in 2025, with the largest contributors being California wildfire losses and frequency of severe storms, and $298 million in 2024 2024, driven by heightened frequency of severe catastrophe events, with Hurricanes Helene and Milton having the largest impacts, and $195 million in 2023. impacts.
RewordedMD&A
Insurance service fees increased to $119 million in 2025 from $109 million in 2024 from $106 million in 2023 2024, mainly due to an acquisition in organic growth within the insurance distribution business in late 2023. business.
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