BERKLEY W R CORP (WRB) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that BERKLEY W R CORP surfaced in its latest filing.

• In December 2023, a subsidiary filed a lawsuit against certain reinsurers to recover over $90 million for losses under event cancellation insurance policies.December 2023
• Plaintiffs targeting us in purported class action litigation relating to claims-handling and other practices.
• Mass tort claims relating to lead paint.
• Mass tort claims relating to polyfluoroalkyl substances.
• Mass tort claims relating to talc.
• Mass tort claims relating to opioids.
• Based on 2025 earned premiums, the aggregate deductible under TRIPRA during 2026 is approximately $1,835 million.2026
• Coverage under TRIPRA is subject to a mandatory deductible based on 20% of earned premium for the prior year for covered lines.
• As of December 31, 2025, the amount due from reinsurers was approximately $3,558 million, including amounts due from state funds and industry pools.December 31, 2025
• As of December 31, 2025, fixed maturity securities were $25.0 billion, or 75.3% of total investment portfolio including cash and cash equivalents.December 31, 2025
• At December 31, 2025, our investment in limited partnership interests, equity securities, merger arbitrage trading securities, and real estate related investments was approximately $5.6 billion, or 17.1% of our investment portfolio including cash and cash equivalents.December 31, 2025
• Merger arbitrage trading securities were $1.2 billion, or 3.7% of our investment portfolio including cash and cash equivalents at December 31, 2025.December 31, 2025
• Real estate related investments were $1.9 billion, or 5.7% of our investment portfolio including cash and cash equivalents at December 31, 2025.December 31, 2025
• Gross reserves for losses and loss expenses were approximately $22.2 billion as of December 31, 2025.December 31, 2025
• During 2026, the maximum amount of dividends that can be paid without regulatory approval is approximately $1.4 billion.2026
• Mitsui Sumitomo Insurance Co., Ltd. owns approximately 14.7% of common stock as of February 23, 2026.February 23, 2026
• Current accident year catastrophe losses net of reinsurance recoveries were $336 million in 2025, $298 million in 2024, and $195 million in 2023.
• NYDFS circular letter requires New York-licensed insurance subsidiaries to integrate climate-related financial risks into governance and disclosure.
• NYDFS amended enterprise risk management regulation to require addressing climate change risk.
• FIO released a June 2023 report urging insurance regulators to adopt climate-related risk monitoring guidance.June 2023
• The EU's Solvency II regime affects our EU-domiciled insurers, and despite a waiver of group capital requirements, changes may increase capital requirements.
• U.K. subsidiaries are subject to a separate U.K. prudential regime deriving from Solvency II, with diverging requirements due to EU amendments and U.K. reforms.
• Voting arrangements with MSI allow the Berkley family to determine the voting of MSI's shares, including on extraordinary transactions, with exceptions for certain conflicts of interest.