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Item 7. Management’s Discussion and Analysis

2026-02-26 compared with 2025-02-27 · 206 added, 153 removed, 826 unchanged (30% of the section changed)

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and internationally, we serve a diverse group of clients worldwide, providing what we believe are extensive product and distribution capabilities, a strong balance sheet, an innovative culture and access to world-class talent.

As a global leader with a 50-year track record, we are a preferred Reinsurance partner in the markets we serve, and with

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.

During 2024, we formed a new “Other” segment, primarily comprised of 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.

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These segment presentation changes have been reflected retrospectively.

The Company will continue to have two reportable segments that actively sell products, Reinsurance and Insurance, consistent with how the on-going business is managed.

As of December 31, 2025, the Company has two reportable segments consistent with how the business is managed.

See Note 7 of the Notes to the Consolidated Financial Statements for a summary of segment results.

Our current year net income of $1.4 billion is inclusive of unfavorable development of prior-year loss reserves of $1.5 billion.

Following a comprehensive reserve review, we have significantly fortified our U.S.

Our net income of $1.6 billion for the year ended December 31, 2025 is inclusive of unfavorable development of prior-year loss reserves of $657 million.

Our net income of $1.4 billion for the year ended December 31, 2024 is inclusive of unfavorable development of prior-year loss reserves of $1.5 billion.

We have significantly fortified our U.S.

casualty reserves, while taking aggressive underwriting action in certain classes exposed to social inflation, bolstering talent and investing in our platform as we head into 2026.

In addition, we have entered into an adverse development reinsurance agreement reinsuring potential adverse loss development for accident years 2024 and prior arising out of North American liabilities within our Insurance and Other Segments and sold the renewal rights to certain lines of commercial retail insurance business.

Refer to management’s discussion of consolidated and segment results below.

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This discussion should be read in conjunction with the consolidated financial statements and related notes, under ITEM 8 of this Form 10-K.

Pursuant to the Fixing America’s Surface Transportation Act Modernization 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.

Comparisons between 2024 and 2023 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, 2024.

All comparisons in this discussion are to the corresponding prior year unless otherwise indicated.

Recent Developments.

Adverse Development Cover Reinsurance Agreements

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.

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.

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.

Sale of Certain Commercial Retail Insurance Renewal Rights

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.

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.

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.

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.

Financial Summary.

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Net investment income 2,124 1,954 1,434 8.7 % 36.3 %

Net gains (losses) on investments 19 (276) (455) NM (39.3) %

Other income (expense) 121 (14) (102) NM (86.3) %

Net gains (losses) on investments (143) 19 (276) NM NM

Other income (expense) (45) 121 (14) NM NM

Total revenues 17,496 17,281 14,587 1.2 % 18.5 %

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Total claims and expenses 15,609 15,787 12,432 (1.1) % 27.0 %

INCOME (LOSS) BEFORE TAXES 1,493 2,154 588 (30.7) % NM

INCOME (LOSS) BEFORE TAXES 1,887 1,493 2,154 26.4 % (30.7) %

Income tax expense (benefit) 296 120 (363) NM NM

NET INCOME (LOSS) $ 1,373 $ 2,517 $ 597 (45.4) % NM

NET INCOME (LOSS) $ 1,591 $ 1,373 $ 2,517 15.9 % (45.4) %

Loss ratio 69.8 % 74.4 % 62.7 % (4.6) 11.7

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Gross written premiums increased by 9.6% to $18.2 billion in 2024, compared to $16.6 billion in 2023, reflecting a $1.5 billion, or 12.9% increase in our reinsurance business and a $191 million, or 3.9%, increase in our insurance business.

The increase in reinsurance premiums reflects growth across multiple lines of business, particularly property and casualty pro rata business and property catastrophe excess of loss business.

The increase in insurance

premiums reflects growth in property/short tail business and other specialty business, partially offset by portfolio actions taken on accident and health, workers’ compensation and specialty casualty lines of business.

Net written premiums increased by 7.4% to $15.8 billion in 2024, compared to $14.7 billion in 2023.

The current year over prior year increase remained relatively consistent with the percentage increase in gross written premiums.

Premiums earned increased by 13.0% to $15.2 billion in 2024, compared to $13.4 billion in 2023, which is consistent with the percentage changes in gross written premiums.

The change in premiums earned relative to net written premiums was primarily the result of timing;

Gross written premiums decreased by 2.9% to $17.7 billion in 2025, compared to $18.2 billion in 2024, reflecting a $288 million, or 5.7% decrease in our insurance business, a $122 million, or 57.3% decrease in business within the Other segment and a $116 million, or 0.9% decrease in our reinsurance business.

The decrease in insurance premiums reflects portfolio actions taken in casualty lines of business partially offset by growth in accident and health and other specialty lines.

Gross written premiums within Other decreased by $122 million as this segment generally represents lines of business that have been discontinued.

The decrease in reinsurance premiums was primarily due to North America casualty pro rata and casualty excess of loss lines of business, partially offset by an increase in the property and financial lines of business.

Net written premiums decreased by 1.9% to $15.5 billion in 2025, compared to $15.8 billion in 2024, primarily driven by overall mix of business.

Premiums earned increased by 2.5% to $15.6 billion in 2025, compared to $15.2 billion in 2024.

The change in premiums earned relative to net written premiums was primarily the result of timing as the higher base premium written in 2024 is being earned through the 2025 period;

premiums are earned ratably over the coverage period whereas written premiums are generally recorded at the initiation of the coverage period.

Other Income (Expense).

We recorded other income of $121 million and other expense of $14 million in 2024 and 2023, respectively.

The change was primarily the result of fluctuations in foreign currency exchange rates, gain from the sale of the sports and leisure business and gain from pension plan curtailment.

We recognized foreign currency exchange income of $58 million in 2024 and foreign currency exchange expense of $24 million in 2023.

Additionally, we recognized a $40 million gain on sale of our sports and leisure business, including renewal rights, sold during the fourth quarter and a $9 million pension plan curtailment gain.

We recorded other expense of $45 million and other income of $121 million in 2025 and 2024, respectively.

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 renewal rights.

The following table shows the components of other income (expense) for the periods indicated:

Years ended December 31,

(Dollars in millions) 2025 2024

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

Total other income (expense) $ (45) $ 121

Claims and Expenses.

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Incurred losses and LAE increased by 34.1% to $11.3 billion in 2024, compared to $8.4 billion in 2023, primarily due to an increase of $1.1 billion in current year attritional losses, an increase of $423 million in current year catastrophe losses and unfavorable development on prior year attritional losses of $1.5 billion, partially offset by favorable development on prior year catastrophe losses of $138 million.

The increase in current year attritional losses was mainly due to the impact of the increase in premiums earned, changes in the mix of business and strengthening of current accident year U.S.

casualty reserves by $206 million in the Insurance

The current year catastrophe losses of $893 million in 2024 related primarily to Hurricane Milton ($320 million), Hurricane Helene ($94 million), Hurricane Beryl ($64 million), Hurricane Debby ($56 million), the 2024 European flood Boris ($56 million), the 2024 Baltimore bridge collapse ($55 million), the third quarter 2024 Calgary Alberta storms ($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) and the 2024 Taiwan earthquake ($27 million), with the remaining losses resulting from various events.

The $470 million of current year catastrophe losses in 2023 related primarily to the 2023 Turkey earthquakes ($103 million), Hurricane Otis ($100 million), the 2023 Italy convective storm ($57 million), the 2023 New Zealand storms ($45 million), the 2023 Morocco earthquake ($40 million), the 2023 Hawaii wildfire ($32 million) and Hurricane Idalia ($23 million), with the remaining losses resulting from various storm events.

Unfavorable development on prior year attritional losses was $1.5 billion in 2024 compared to favorable development of $5 million in 2023.

The net unfavorable development on prior year attritional reserves of $1.5 billion in 2024 is comprised of $1.1 billion of unfavorable development on prior years attritional losses from the Insurance segment, mainly driven by a combination of social inflation and portfolio concentrations in certain U.S.

casualty lines and $403 million of unfavorable development on prior years attritional losses from the Other segment, mainly related to certain sports and leisure lines for accident years 2019 through 2023, including A&E reserve strengthening of $54 million.

In addition, the Reinsurance segment recorded $684 million of unfavorable development on prior year casualty reserves.

This unfavorable development in the Reinsurance segment was largely offset by favorable development booked on well-seasoned reserves in the property and mortgage lines.

Incurred losses and LAE decreased by 3.9% to $10.9 billion in 2025, compared to $11.3 billion in 2024, primarily due to a decrease in unfavorable development on prior year attritional losses of $725 million and a decrease of $73 million in

current year catastrophe losses, partially offset by an increase of $308 million in current year attritional losses and a decrease in favorable development on prior year catastrophe losses of $45 million.

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.

The net unfavorable development on prior year attritional reserves of $751 million in 2025 is comprised of $471 million of unfavorable development on prior years attritional losses from the Insurance segment due to reserve strengthening in U.S.

casualty lines of business driven by elevated loss experience in excess casualty and U.S.

liability lines primarily on accident years 2022-2024, and $163 million of unfavorable development in our Other segment which was driven by U.S.

casualty lines, primarily from our sports and leisure business.

In addition, the Reinsurance segment 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.

Embedded in the amounts noted above is $122 million of prior year losses related to the ADC.

The current year catastrophe losses of $819 million in 2025 related primarily to the 2025 Southern California wildfires ($512 million), Hurricane Melissa ($159 million), the 2025 Australian Storms ($47 million), Myanmar earthquake ($28 million), Typhoon Ragasa ($20 million) and the 2025 U.S.

September floods ($19 million), with the remaining losses resulting from various events.

The $893 million of current year catastrophe losses in 2024 related primarily to Hurricane Milton ($320 million), Hurricane Helene ($94 million), Hurricane Beryl ($64 million), Hurricane Debby ($56 million), the 2024 European flood Boris ($56 million), the 2024 Baltimore bridge collapse ($55 million), the third quarter 2024 Calgary Alberta storms ($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) and the 2024 Taiwan earthquake ($27 million), with the remaining losses resulting from various events.

For 2025, the favorable development on prior year catastrophe losses of $94 million was mainly related to reserves released related to the 2022 Hurricane Ian event.

Catastrophe losses and loss expenses typically have a material effect on our incurred losses and LAE results and can vary significantly from period to period.

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Other Underwriting Expenses.

Other underwriting expenses were $938 million and $846 million in 2024 and 2023, respectively.

The increase in other underwriting expenses was mainly due to the impact of the increase in premiums earned as well as the continued build out of our insurance operations, including an expansion of the international insurance platform.

Other underwriting expenses were $1.0 billion and $938 million in 2025 and 2024, respectively.

The increase in other underwriting expenses was mainly due to the impact of the increase in premiums earned as well as strategic actions taken in insurance operations.

Refer to the “Ratios” section for other underwriting expense ratio analysis discussion.

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Corporate expenses, which are general operating expenses that are not allocated to segments, were $109 million and $95 million for the years ended December 31, 2025 and 2024, respectively.

The increase in 2024 compared to 2023 was primarily due to information management related costs, including the acceleration of cybersecurity, corporate applications and infrastructure investments as well as an increase in compensation costs due to increased headcount from the prior year.

The increase in 2025 compared to 2024 was primarily due to an increase in other professional services related to consulting fees for corporate initiatives and an increase in lease rent expenses.

Interest, Fees and Bond Issue Cost Amortization Expense.

Interest, fees and other bond amortization expense was $151 million and $149 million in 2025 and 2024, respectively.

The increase was primarily driven by higher interest costs resulting from additional borrowings from the Federal Home Loan Bank of New York (“FHLBNY”), offset by the change in the floating interest rate related to the Company’s outstanding fixed to floating rate long-term subordinated notes, which is reset quarterly per the note agreement.

The increase was primarily driven by higher interest costs on the Federal Home Loan Bank of New York (“FHLBNY”), partially offset by the change in the floating interest rate related to the Company’s outstanding fixed to floating rate long-term subordinated notes, which is reset quarterly per the note agreement.

The floating rate was 6.50% as of December 31, 2025, compared to 7.17% as of December 31, 2024.

Income Tax Expense (Benefit).

Everest had an income tax expense of $120 million and income tax benefit of $363 million in 2024 and 2023, respectively.

Income tax expense was $296 million and $120 million in 2025 and 2024, respectively.

An income tax expense/benefit is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions.

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Variations in the ETR generally result from changes in the relative levels of pre-tax income, including the impact of catastrophe losses and net capital gains (losses), among jurisdictions with different tax rates.

The tax benefit in 2023 was primarily due to the implementation of the provisions of the Bermuda Corporate Income Tax Act of 2023 (“The 2023 Act”).

On December 27, 2023, the Government of Bermuda enacted the Corporate Income Tax Act 2023 (the “2023 Act”), which will apply a 15% corporate income tax to certain Bermuda businesses in fiscal years beginning on or after January 1, 2025.

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If the Bermuda Ministry of Finance amends The 2023 Act in response to this guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets.

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.

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.

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.

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.

Net Income (Loss).

Our net income was $1.6 billion and $1.4 billion in 2025 and 2024, respectiv ely.

The decline was primarily driven by a decrease in underwriting income of $1.6 billion resulting from the unfavorable prior year development recognized in 2024, partially offset by an increase of $520 million in net investment income.

Our combined ratio increased by 11.4 points to 102.3% in 2024, compared to 90.9% in 2023.

The current year increase is primarily due to prior year development on attritional losses and higher current year catastrophe losses.

The loss ratio component increased by 11.7 points in 2024 over the same period last year mainly due to an increase of $423 million in catastrophe losses and prior year development on attritional losses.

The commission and brokerage ratio components decreased to 21.7% in 2024, compared to 22.0% in 2023.

The decrease was mainly due to changes in the mix of business.

The other underwriting expense ratio decreased to 6.2% in 2024, compared to 6.3% in 2023.

The decrease was mainly due to Reinsurance segment continued leverage against its premium base, offset by Insurance segment expenses driven by continued international growth.

The period over period changes in net income were primarily driven by the financial component fluctuations explained above.

Our combined ratio decreased by 3.7 points to 98.6% in 2025, compared to 102.3% in 2024.

The current year decrease is primarily due to lower unfavorable prior year development on attritional losses and lower current year catastrophe losses.

The loss ratio component decreased by 4.6 points to 69.8% in 2025, compared to 74.4% in 2024.

The decrease was mainly due to a decrease of $73 million in current year catastrophe losses and lower unfavorable prior year development on attritional losses.

The commission and brokerage ratio components increased to 22.2% in 2025, compared to 21.7% in 2024.

The increase was mainly due to changes in the mix of business.

The other underwriting expense ratio increased to 6.6% in 2025, compared to 6.2% in 2024.

The increase was due to higher Insurance segment expenses driven by strategic actions, offset by Reinsurance segment continued leverage against its premium base.

Shareholders’ Equity.

Shareholders’ equity increased by $673 million to $13.9 billion at December 31, 2024 from $13.2 billion at December 31, 2023, principally as a result of $1.4 billion of net income, partially offset by $334 million of shareholder dividends, $200 million of share repurchases, $128 million of net foreign currency translation adjustments and $127 million of unrealized depreciation on fixed income available for sale securities, net of tax.

Shareholders’ equity increased by $1.6 billion to $15.5 billion at December 31, 2025 from $13.9 billion at December 31, 2024, principally as a result of $1.6 billion of net income, $854 million of unrealized appreciation on fixed income available for sale securities, net of tax and $242 million of net foreign currency translation gains, partially offset by $797 million of share repurchases and $335 million of shareholder dividends.

Consolidated Investment Results

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Net investment income increased by 8.7% to $2.1 billion in 2025, compared with net investment income of $2.0 billion in 2024.

The increase was primarily the result of an additional $382 million of income from fixed maturity and short-term investments, an increase of $84 million in income from limited partnerships and an increase of $45 million in income from other alternative investments.

The increase was primarily the result of an increase of $91 million in fixed maturities, an increase of $71 million in income from limited partnerships and an increase of $20 million in income from other alternative investments.

The limited partnership income primarily reflects changes in their reported net asset values.

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As of December 31, 2025, the Company did not have any direct investments in commercial real estate, direct commercial mortgages or securities of issuers that are experiencing cash flow difficulty to an extent that the Company’s management believes that the issuer’s ability to meet debt service payments, except where an allowance for credit losses has been recognized, is threatened.

The Company’s investment portfolio includes structured commercial mortgage-backed securities (“CMBS”) with a book value of $985 million and a fair value of $921 million.

The Company’s investment portfolio includes structured commercial mortgage-backed securities (“CMBS”) with a book value of $1.6 billion and a fair value of $1.5 billion.

As of December 31, 2025, 64.3% of CMBS securities in our investment portfolio are rated AAA by nationally recognized rating agencies.

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Total (111) 6 (292) (118) 298

Fixed maturity securities - held to maturity

Gains — — — — —

Losses (1) — — (1) —

Total — — — — —

Equity securities

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Total net gains (losses) on invest ments in 2024 primarily consist of $7 million of net gains due to the disposition of investments and a decrease to the allowance for credit losses of $13 million.

The realized gains from dispositions of investments mainly related to the execution of a Company strategy to sell lower yielding investments in order to reinvest the proceeds at higher interest rates.

Total net gains (losses) on invest ments in 2025 primarily consist of $112 million of net losses due to the disposition of investments and an increase to the allowance for credit losses of $30 million.

Segment Results.

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During the fourth quarter of 2024, the Company revised its classification and presentation of certain run-off business, previously included within the Reinsurance and Insurance reportable segments, as part of a new 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.

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 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 managed due to changes in management implemented during the fourth quarter of 2023.

These segment presentation changes have been reflected retrospectively.

The Company will continue to have two reportable segments that actively sell products, Reinsurance and Insurance, consistent with how the on-going business is managed.

The Company does not review and evaluate the financial results of its segments based upon balance sheet data.

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Other underwriting expenses 291 290 254 1 0.2 % 36 14.1 %

Underwriting gain (loss) $ 1,181 $ 1,334 $ 302 $ (153) (11.5) % $ 1,032 NM

Underwriting gain (loss) $ 972 $ 1,181 $ 1,334 $ (209) (17.7) % $ (153) (11.5) %

Point Chg Point Chg

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Gross written premiums increased by 12.9% to $12.9 billion in 2024 from $11.5 billion in 2023.

The increase in gross written premiums reflects growth across multiple lines of business, particularly property and casualty pro rata business and property catastrophe excess of loss business.

Net written premiums increased by 10.8% to $12.0 billion in 2024, compared to $10.8 billion in 2023.

The current year over prior year increase remained relatively consistent with the percentage increase in gross written premiums.

Premiums earned increased by 16.5% to $11.4 billion in 2024, compared to $9.8 billion in 2023.

The change in premiums earned relative to net written premiums is primarily the result of timing;

Gross written premiums decreased by 0.9% to $12.8 billion in 2025 from $12.9 billion in 2024.

The decrease in gross written premiums was primarily due to North America casualty pro rata and casualty excess of loss lines of business, partially offset by an increase in the property book of business and financial lines business.

Net written premiums decreased by 1.5% to $11.8 billion in 2025, compared to $12.0 billion in 2024.

The current year over prior year decrease was primarily due to changes in cessions and overall mix of business

Premiums earned increased by 2.8% to $11.7 billion in 2025, compared to $11.4 billion in 2024, primarily driven by increased property pro rata business written that was recorded over the prior quarters which are now being earned, partially offset by casualty pro rata lines.

The change in premiums earned relative to net written premiums is the result of timing;

premiums are earned ratably over the coverage period, whereas written premiums are generally recorded at the initiation of the coverage period.

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

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.

Incurred Losses and LAE.

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Incurred losses increased by 5.8% to $7.5 billion in 2025, compared to $7.1 billion in 2024.

The increase was primarily due to an increase of $815 million in current year attritional losses, an increase of $322 million in current year catastrophe losses and a decrease of favorable development on prior year attritional reserves ($0 million in 2024 and $401 million in 2023), partially offset by favorable development on prior year catastrophe losses of $125 million.

The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned.

During the current year, prior year U.S.

casualty reserves were strengthened by $684 million.

This reserve strengthening was fully offset by favorable development on well-seasoned reserves in property and mortgage lines.

The current year catastrophe losses of $772 million in 2024 related primarily to Hurricane Milton ($275 million), Hurricane Helene ($64 million), Hurricane Debby ($55 million), Hurricane Beryl ($54 million), the 2024 European flood Boris ($50 million), the 2024 Baltimore bridge collapse ($50 million), the third quarter 2024 Calgary Alberta storms ($45 million) and the 2024 Brazil Floods ($41 million), the 2024 Dubai floods ($32 million), the 2024 New Caledonia Riots ($31 million), the 2024 Germany floods ($28 million) and the 2024 Taiwan earthquake ($25 million), with the remaining losses resulting from various events.

The $449 million of current year catastrophe losses in 2023 related primarily to the 2023 Turkey earthquakes ($103 million), Hurricane Otis ($100 million), the 2023 Italy convective storm ($57 million), the 2023 New Zealand storms ($43 million), the 2023 Morocco earthquake ($40 million), the 2023 Hawaii wildfire ($27 million) and Hurricane Idalia ($23 million), with the remaining losses resulting from various storm events.

The increase was primarily due to an increase of $264 million in current year attritional losses, an increase in unfavorable development on prior year attritional reserves of $117 million and a decrease in favorable development on prior year catastrophe losses of $36 million, partially offset by a decrease of $3 million in current year catastrophe losses.

The increase in current year attritional losses was mainly related to the impact of the increase in premiums earned, the impact of the Washington D.C.

aviation accident during the first quarter and reserve strengthening on the U.S.

casualty business.

The unfavorable development on prior year attritional reserves was mainly driven by 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.

The current year catastrophe losses of $768 million in 2025 related primarily to the 2025 Southern California wildfires ($502 million), Hurricane Melissa ($143 million), the 2025 Australian Storms ($47 million), Myanmar earthquake ($20 million) and Typhoon Ragasa ($20 million), with the remaining losses resulting from various events.

The $772 million of current year catastrophe losses in 2024 related primarily to Hurricane Milton ($275 million), Hurricane Helene ($64 million), Hurricane Debby ($55 million), Hurricane Beryl ($54 million), the 2024 European flood Boris ($50 million), the 2024 Baltimore bridge collapse ($50 million), the third quarter 2024 Calgary Alberta storms ($45 million) and the 2024 Brazil Floods ($41 million), the 2024 Dubai floods ($32 million), the 2024 New Caledonia Riots ($31 million), the 2024 Germany floods ($28 million) and the 2024 Taiwan earthquake ($25 million), with the remaining losses resulting from various events.

For 2025, the favorable development on prior year catastrophe losses of $89 million was mainly related to reserves released related to the 2022 Hurricane Ian and older well-seasoned CAT events.

Segment Expenses.

Commission and brokerage expense increased by 4.0% to $3.0 billion in 2025, compared to $2.8 billion in 2024.

The increase was mainly due to the impact of the increase in premiums earned and changes in the mix of business.

The increase was mainly due to the impact of the increase in premiums earned, contingent commissions and changes in the mix of business.

Segment other underwriting expenses increased to $291 million in 2025 from $290 million in 2024.

The increase was in line with growth in the business and necessary support functions.

The other underwriting expenses remained relatively flat to prior year due to expense management.

The following table presents the underwriting results and ratios for the Insurance segment for the periods indicated:

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Other underwriting expenses 721 615 556 106 17.3 % 59 10.6 %

Underwriting gain (loss) $ (1,097) $ (18) $ 121 $ (1,079) NM $ (139) NM

Underwriting gain (loss) $ (541) $ (1,097) $ (18) $ 555 (50.6) % $ (1,079) NM

Point Chg Point Chg

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(Some amounts may not reconcile due to rounding.)

Gross written premiums increased by 3.9% to $5.1 billion in 2024, compared to $4.9 billion in 2023.

The increase in insurance premiums reflects growth property/short tail business and other specialty business, partially offset by portfolio actions taken on accident and health, workers’ compensation and casualty lines of business.

Gross written premiums decreased by 5.7% to $4.8 billion in 2025, compared to $5.1 billion in 2024.

The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business as well as the impact of the sale of renewal rights, partially offset by an increase in other specialty business and accident and health business.

Net written premiums decreased by 1.1% to $3.6 billion in 2025, compared to $3.7 billion in 2024.

The decrease in net written premiums compared to the increase in gross written premiums was mainly due to lower net retention resulting from changes in the mix of business.

The decrease in net written is due to the reduction gross written premium partially offset by business mix and higher retentions in certain lines of business.

Premiums earned increased by 3.9% to $3.7 billion in 2025, compared to $3.6 billion in 2024.

The change in premiums earned relative to net written premiums is primarily the result of timing;

The change in premiums earned relative to net written premiums was primarily the result of timing as the higher base premium written in 2024 is being earned through the 2025 period;

premiums are earned ratably over the coverage period whereas written premiums are generally recorded at the initiation of the coverage period.

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(Some amounts may not reconcile due to rounding.)

Incurred losses and LAE increased by 46.5% to $3.6 billion in 2024, compared to $2.5 billion in 2023.

The increase was mainly due to unfavorable development on prior years attritional losses of $787 million, an increase of $277 million in current year attritional losses and an increase in current year catastrophe losses of $100 million, partially offset by favorable development on prior years catastrophe losses of $14 million.

During 2024, prior year U.S.

casualty reserves were strengthened by $1.1 billion.

The reserve strengthening was driven by a combination of social inflation and portfolio concentrations in certain U.S.

casualty lines classes.

The increase in current year attritional losses was primarily due to the impact of the increase in premiums earned and strengthening of current accident year U.S.

casualty reserves by $206 million.

The current year catastrophe losses of $120 million primarily related to Hurricane Milton ($44 million), Hurricane Helene ($29 million), Hurricane Beryl ($10 million) and the third quarter 2024 Calgary Alberta storms ($9 million), with the remaining losses resulting from various events.

The $20 million of current year catastrophe losses in 2023 primarily related to the 2023 third quarter U.S.

storms ($5 million), the 2023 Hawaii wildfire ($5 million) and the 2023 December U.S.

East Coast flooding ($5 million), with the remaining losses resulting from various storm events.

Incurred losses and LAE decreased by 15.8% to $3.1 billion in 2025, compared to $3.6 billion in 2024.

The decrease was mainly due to a decrease in unfavorable development on prior years attritional losses of $601 million and a decrease in current year catastrophe losses of $79 million, partially offset by an increase of $101 million in current year attritional losses and a decrease in favorable development on prior years catastrophe losses of $9 million.

The increase in current year attritional losses and the 2025 unfavorable development on prior years attritional losses of $471 million were both primarily due to reserve strengthening in U.S.

casualty lines of business driven by elevated loss experience in excess casualty and U.S.

liability lines primarily on accident years 2022-2024.

The current year catastrophe losses of $41 million primarily related to Hurricane Melissa ($16 million), the first quarter 2025 Myanmar earthquake ($8 million) and the 2025 Southern California wildfires ($7 million), with the remaining losses resulting from various events.

The $120 million of current year catastrophe losses in 2024 primarily related to Hurricane Milton ($44 million), Hurricane Helene ($29 million), Hurricane Beryl ($10 million) and the third quarter 2024 Calgary Alberta storms ($9 million), with the remaining losses resulting from various events.

For 2025, the favorable development on prior year catastrophe losses of $5 million was related to multiple events from 2024 and prior.

Segment Expenses.

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Segment other underwriting expenses increased to $721 million in 2025, compared to $615 million in 2024.

These increases were mainly due to the impact of the increase in premiums earned and increased expenses related to the continued build out of the insurance business, including an expansion of the international insurance platform.

The change in commission and brokerage expenses is driven by mix as the international portfolio increases which carries a higher net commission rate.

The increase in other underwriting expenses was mainly due to the impact of strategic actions in insurance operations.

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(Some amounts may not reconcile due to rounding.)

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.

Incurred Losses and LAE.

Incurred losses and LAE increased to $580 million in 2024, compared to $266 million in 2023.

The increase was mainly due to unfavorable development on prior years attritional losses of $293 million.

During 2024, the unfavorable development on prior year attritional losses for the Company’s Other segment of $403 million was mainly related to North America casualty lines for accident years 2019 through 2023 that were impacted by social inflation, including A&E reserve strengthening of $54 million resulting in a 3-year net asbestos survival ratio of 7 years.

Segment Expenses.

Commission and brokerage and other underwriting expenses remained relatively flat year over year.

Incurred losses and LAE decreased to $292 million in 2025, compared to $580 million in 2024.

The decrease was mainly due to a decrease in unfavorable development on prior years attritional losses of $240 million.

During 2025, the unfavorable development on prior year attritional losses for the Company’s Other segment of $163 million was mainly related to unfavorable development on prior year attritional losses driven by U.S.

casualty lines, primarily from our sports and leisure business.

Critical Accounting Estimates

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(2) our expected loss ratios by product and class of business, which are developed collaboratively by underwriters and actuaries;

(3) actuarial methodologies and assumptions which analyze our loss reporting and payment experience, reports from ceding companies and historical trends, such as reserving patterns, loss payments and product mix;

(3) actuarial methodologies and assumptions which analyze our loss reporting and payment experience, size of loss distribution, reports from ceding companies and historical trends, such as reserving patterns, loss payments and product mix;

(4) current legal interpretations of coverage and liability;

and (5) economic conditions.

and (5) economic conditions including but not limited to social inflation.

Management’s best estimate is developed through collaboration with actuarial, underwriting, claims, legal and finance departments and culminates with the input of reserve committees.

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This information is recorded into our records.

For certain proportional contracts, we may require a detailed loss report for claims that exceed a certain dollar threshold or relate to a particular type of loss.

For certain proportional contracts, we may require a

detailed loss report for claims that exceed a certain dollar threshold or relate to a particular type of loss.

Excess of loss and facultative contracts generally require individual loss reporting with precautionary notices provided when a loss reaches a significant percentage of the attachment point of the contract or when certain causes of loss or types of injury occur.

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Based on our evaluation of a claim, we may establish additional case reserves in addition to the case reserves reported by the ceding company.

To ensure ceding companies are submitting required and accurate data, the Underwriting, Claim, Reinsurance Accounting and Internal Audit departments of the Company perform various reviews of our ceding companies, particularly larger ceding companies, including on-site audits of domestic ceding companies.

We sort our reserves by segment into exposure groupings for actuarial analysis.

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The Company analyzes significant variances between actual and expected losses and also considers recent market, underwriting and management criteria to determine management’s best estimate of ultimate unpaid losses and LAE.

Certain reserves, including losses from widespread catastrophic events and COVID-19 related losses, cannot be estimated using traditional actuarial method.

Certain reserves, including losses from widespread catastrophic events, cannot be estimated using traditional actuarial method.

Rather, loss and LAE reserves are estimated by completing an in-depth analysis of the individual contracts which may potentially be impacted by the loss.

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4) discussing the loss with customers and brokers;

and 5) estimating the ultimate expected cost to settle all claims and administrative costs arising from the loss on a contract-by-contract basis

and in aggregate for the event.

and 5) estimating the ultimate expected cost to settle all claims and administrative costs arising from the loss on a contract-by-contract basis and in aggregate for the event.

Due to the inherent uniqueness or specific nature of a catastrophic event, each event has its own unique assessment, and different weights may be applied to various inputs based on our judgment.

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We also review catastrophe bulletins published by various statistical modeling agencies to assist in determining the size of the industry loss, although these reports may not be available for some time after an event.

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.

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.

This includes reviewing catastrophe bulletins published by Property Claim Services for U.S.

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and (g) uncertainty regarding the number and identity of insureds with potential asbestos or environmental exposure.

Due to the uncertainties discussed above, the ultimate losses attributable to A&E, and particularly asbestos, may be subject to more variability than are non-A&E reserves and such variation could have a material adverse effect on our

financial condition, results of operations and/or cash flows.

See also ITEM 8, “Financial Statements and Supplementary Data” - Notes 1 and 4 of Notes to the Consolidated Financial Statements.

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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 reinsurance comprises an allowance and an allowance for disputed balances.

The allowance for uncollectible

reinsurance recoverable includes an allowance for disputed balances.

Based on this analysis, the Company may adjust the allowance for uncollectible reinsurance or charge off reinsurer balances that are determined to be uncollectible.

Reinsurance recoverable balances are considered past due when amounts that have been billed are not collected within contractually stipulated time periods.

Due to the inherent uncertainties as to collection and the length of time before reinsurance recoverable become due, it is possible that future adjustments to the Company’s reinsurance recoverable, net of the allowance, could be required, which could have a material adverse effect on the Company’s consolidated results of operations or cash flows in a particular quarter or annual period.

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The Company's evaluation of the required allowance for reinsurance recoverable considers the current economic environment as well as macroeconomic scenarios.

To manage reinsurer credit risk, a reinsurance security review committee evaluates the credit standing, financial performance, management and operational quality of each potential reinsurer.

The Company records credit loss expenses related to reinsurance recoverable in incurred losses and LAE in the Company’s consolidated statements of operations and comprehensive income (loss).

Write-offs of reinsurance recoverable and any related allowance are recorded in the period in which the balance is deemed uncollectible.

Retroactive Reinsurance.

Retroactive reinsurance agreements are reinsurance agreements under which a reinsurer agrees to reimburse the Company as a result of loss development related to past insurable events.

For these agreements, the excess of the amounts ultimately collectible under the agreement over the consideration paid is recognized as a deferred gain liability and amortized into income over the settlement period of the ceded reserves.

The amount of deferred gain liability is recalculated each period based on cumulative recoveries not yet collected relative to the latest estimate of ultimate losses to be recovered.

If the consideration paid exceeds the ultimate losses collectible under the agreement, the net loss on the agreement is recognized in income immediately in incurred losses and loss adjustment expenses in the Company’s consolidated statement of operations.

In any given period, the change in deferred gain included in net income includes amortization of the deferred gain based on the percentage of ultimate ceded losses collected plus any change in the deferred liability due to change in the estimated losses to be recovered.

The amounts are recalculated each period based on loss payments and updated loss reserves estimates.

Premiums Written and Earned.

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Some of our CMBS are valued using cash flow models and risk-adjusted discount rates.

We hold privately placed securities, less than 10% of the portfolio, which are either valued by investment advisors or the Company.

We hold privately placed securities which are either valued by investment advisors or the Company.

In some instances, values provided by an investment advisor are supported with opinions from qualified independent third parties.

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We carry the limited partnership investments at values provided by the managements of the limited partnerships and due to inherent reporting lags, the carrying values are based on values with “as of” dates from generally one month to one quarter prior to our financial statement date.

At December 31, 2024, we had 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.

At December 31, 2025, we had net unrealized gains on our fixed maturity securities, net of tax, of $5 million, compared to net unrealized losses on our fixed maturity securities, net of tax, of $849 million at December 31, 2024.

Gains (losses) from fair value fluctuations on available for sale fixed maturity securities are reflected as accumulated other comprehensive income (loss) in the consolidated balance sheets.

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The 2023 Act includes a provision referred to as “The Economic Transition Adjustment” (the “ETA”), which is intended to provide a fair and equitable transition into the new tax regime, and results in a deferred tax benefit for the Company.

However, on January 15, 2025, the OECD issued Guidance related to “deferred tax assets arising from tax benefits provided by General Government” whereby it has restricted the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026.

However, on January 15, 2025, the OECD issued guidance related to “deferred tax assets arising from tax benefits provided by General Government” restricting the utilization of those deferred tax benefits against the computation of its Pillar Two Global Minimum Taxes to approximately 20% of the originally calculated amounts and only for a grace period of two years through 2026.

If the Bermuda Ministry of Finance amends the 2023 Act in response to this guidance, the exact impact of any such amendments is uncertain but there is a risk that it results in a reduction in the Company's Deferred Tax Assets.

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Reinsurance recoverables for both paid and unpaid losses totaled $5.1 billion at December 31, 2025 and $3.1 billion at December 31, 2024.

At December 31, 2024, $395 million, or 12.6%, was recoverable from Mt.

At December 31, 2025, in connection with the ADC reinsurance agreements, $1,253 million was recoverable from State National Insurance Company, Inc.

Additionally at December 31, 2025, $411 million, or 8.1%, was recoverable from Mt.

Logan Re, Ltd.

Logan Re”) collateralized segregated accounts;

$316 million, or 10.1%, was recoverable from Munich Reinsurance America, Inc.

and $187 million, or 6.0%, was recoverable from Endurance Assurance Corporation of America.

Logan Re”) collateralized segregated accounts and $289 million, or 5.7%, was recoverable from Munich Reinsurance America, Inc.

No other retrocessionaire accounted for more than 5% of our recoverables.

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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

such re-evaluations are reflected in incurred losses in the period when the re-evaluation is made.

Changes in reserves resulting from such re-evaluations are reflected in incurred losses in the period when the re-evaluation is made.

Our analytical methods and processes operate at multiple levels including individual contracts, groupings of like contracts, classes and lines of business, internal business units, segments, accident years, legal entities and in the aggregate.

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We continue to possess significant financial flexibility and access to debt and equity markets as a result of our financial strength, as evidenced by the financial strength ratings assigned by independent rating agencies.

See also ITEM 1, Business - “Financial Strength Ratings”.

See also ITEM 1, “Financial Strength Ratings”.

We maintain our own economic capital models to monitor and project our overall capital, as well as the capital at our operating subsidiaries.

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In 2025, we repurchased 2,394,763 of our common shares at a cost of $797 million in the open market and paid $335 million in common share dividends to adjust our capital position and enhance long-term expected returns to our shareholders.

During 2023, we repurchased no shares in the open market and paid $288 million in dividends.

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 dividends.

We may at times enter into a Rule 10b5-1 repurchase plan agreement to facilitate the repurchase of shares.

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As of December 31, 2025, we had repurchased 33.7 million shares under this authorization.

During the fourth quarter of 2024, the Company’s Board of Directors declared a quarterly

common stock dividend of $2.00 per share.

During the fourth quarter of 2025, the Company’s Board of Directors declared a quarterly common stock dividend of $2.00 per share.

The common stock dividend was paid on December 12, 2025 for holders of record as of November 26, 2025.

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We do not anticipate selling a significant amount of securities to pay losses and LAE.

At December 31, 2024, we had $990 million of net pre-tax unrealized depreciation related to fixed maturity - available for sale securities, comprised of $1.2 billion of pre-tax unrealized depreciation and $167 million of pre-tax unrealized appreciation.

At December 31, 2025, we had $21 million of net pre-tax unrealized appreciation related to fixed maturity - available for sale securities, comprised of $619 million of pre-tax unrealized depreciation and $640 million of pre-tax unrealized appreciation.

Management generally expects annual positive cash flow from operations.

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See Note 8 - Credit Facilities to the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Form 10-K for further details.

Exposure to Prior Year Development.

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 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.

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.

Loss experience in our 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.

We have entered into certain adverse development reinsurance agreements to reinsure against potential adverse loss development for accident years 2024 and prior arising out of North American insurance liabilities within our Insurance and Other segments subject to exclusions for certain liabilities, including among others those related to Asbestos & Environmental reserves.

Exposure to Catastrophes.

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Accordingly, we employ various techniques to estimate the amount of loss we could sustain from any single catastrophic event or series of events in various geographic areas.

These techniques range from deterministic approaches, such as tracking aggregate limits exposed in catastrophe-prone

zones and applying reasonable damage factors, to modeled approaches that attempt to scientifically measure catastrophe loss exposure using sophisticated Monte Carlo simulation techniques that forecast frequency and severity of potential losses on a probabilistic basis.

These techniques range from deterministic approaches, such as tracking aggregate limits exposed in catastrophe-prone zones and applying reasonable damage factors, to modeled approaches that attempt to scientifically measure catastrophe loss exposure using sophisticated Monte Carlo simulation techniques that forecast frequency and severity of potential losses on a probabilistic basis.

No single computer model or group of models is currently capable of projecting the amount and probability of loss in all global geographic regions in which we conduct business.

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As a result, there can be no assurance that any actual event will align with the modeled event or that actual losses from events similar to the modeled events will not vary materially from the modeled event PML.

From an enterprise risk management perspective, management sets limits on the levels of catastrophe loss exposure we may underwrite.

From an enterprise risk management perspective, the Board of Directors of the Company and each of the Company’s operating subsidiaries, in connection with management, sets limits on the levels of catastrophe loss exposure we may underwrite.

The limits are revised periodically based on a variety of factors, including but not limited to our financial resources and expected earnings and risk/reward analyses of the business being underwritten.

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Management also monitors and controls its largest PMLs at multiple points along the loss distribution curve, such as loss amounts at the 20, 50, 100, 250 and 500-year return periods.

This process enables management to identify and control exposure accumulations and to integrate such exposures into enterprise risk, underwriting and capital management decisions.

This process enables management to identify

and control exposure accumulations and to integrate such exposures into enterprise risk, underwriting and capital management decisions.

Our catastrophe loss projections, segmented by risk zones, are updated quarterly and reviewed as part of a formal risk management review process.

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• purchasing reinsurance and/or retrocessional protection to the extent that such coverage can be secured cost-effectively.

See “Reinsurance and Retrocession Arrangements”.

We believe that our methods of monitoring, analyzing and managing catastrophe exposures provide a credible risk management framework, which is integrated with our enterprise risk management, underwriting and capital management plans.

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Texas Wind 187 464 846 1,590 2,101

We believe that our greatest worldwide 1 in 100-year exposure to a single catastrophic event is to a wind event affecting the Southeast U.S., where we estimate we have a PML exposure, net of third party reinsurance including catastrophe industry loss warranty cover, of $2.2 billion which represents approximately 11.0% of its December 31, 2024 shareholders’ equity.

We believe that our greatest worldwide 1 in 100-year exposure to a single catastrophic event is to a wind event affecting the Southeast U.S., where we estimate we have a PML exposure, net of third party reinsurance including catastrophe industry loss warranty cover, of $2.4 billion which represents approximately 11.0% of our December 31, 2025 shareholders’ equity.

If such a single catastrophe loss were to occur, management estimates that the net economic loss to us would be approximately $1.7 billion.

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Management is not aware of a cybersecurity incident that has had a material impact on our operations.

What changed 10-K

Item 7. Management’s Discussion and Analysis