EVEREST GROUP, LTD.

Previous wording

The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three and six months ended June 30, 2025. This discussion should be read in conjunction with the consolidated financial statements and related notes, under Part I - Item 1 of this Form 10-Q, as well as the audited consolidated financial statements and notes thereto for the year ended December 31, 2024, included in the Company’s most recent Form 10-K filing.

Current wording

The following is a discussion of our results of operations, financial condition and liquidity and capital resources for the three and nine months ended September 30, 2025. This discussion should be read in conjunction with the consolidated financial statements and related notes, under Part I - Item 1 of this Form 10-Q, as well as the audited consolidated financial statements and notes thereto for the year ended December 31, 2024, included in the Company’s most recent Form 10-K filing.

Previous wording

Premiums. Gross written premiums decreased by 0.9% remaining relatively constant at $4.7 billion for the three months ended June 30, 2025, compared to $4.7 billion for the three months ended June 30, 2024. The decrease reflects a $45 million, or 3.1%, decrease in our insurance business and a $34 million, or 60.5%, decrease in business within the Other segment, partially offset by a $34 million, or 1.1%, increase in our reinsurance business. The decrease in insurance premiums compared to the prior year period was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in other specialty business and accident and health business. Gross written premiums within Other decreased by $35 million as this segment generally represents lines of business that have been discontinued. The increase in reinsurance premiums was primarily due to property pro rata and property catastrophe excess of loss lines of business, partially offset by a decrease in financial lines business driven by actions taken on our North America casualty business.

Current wording

Premiums. Gross written premiums decreased by 1.1%, remaining relatively constant at $4.4 billion for the three months ended September 30, 2025, compared to $4.4 billion for the three months ended September 30, 2024. The decrease reflects a $59 million, or 1.8%, decrease in our reinsurance business and a $28 million, or 55.9%, decrease in business within the Other segment, partially offset by a $37 million, or 3.4%, increase in our insurance business. The decrease in reinsurance premiums was primarily due to U.S. 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. Gross written premiums within Other decreased by $28 million as this segment generally represents lines of business that have been discontinued. The increase in insurance premiums compared to the prior year period was primarily due to an increase in accident and health business, professional liability business and other specialty business, partially offset by portfolio actions taken on specialty casualty lines of business primarily in the U.S. portfolio.

Previous wording

Gross written premiums decreased by 0.7% remaining relatively constant at $9.1 billion for the six months ended June 30, 2025, compared to $9.1 billion for the six months ended June 30, 2024. The decrease reflects an $83 million, or 62.4%, decrease within the Other segment and a $60 million, or 2.3%, decrease in our insurance business, partially offset by a $78 million, or 1.2%, increase in our reinsurance business. Gross written premiums within Other has decreased by $83 million as this segment generally represents lines of business that have been discontinued. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in other specialty business and property/short tail business. The increase in reinsurance premiums was primarily driven by property pro rata business and property catastrophe excess of loss business, partially offset by actions taken on our North America reinsurance casualty business.

Current wording

Gross written premiums decreased by 0.8% to $13.4 billion for the nine months ended September 30, 2025, compared to $13.6 billion for the nine months ended September 30, 2024. The decrease reflects an $111 million, or 60.6%, decrease within the Other segment and a $22 million, or 0.6%, decrease in our insurance business, partially offset by a $19 million, or 0.2%, increase in our reinsurance business. Gross written premiums within Other has decreased by $111 million as this segment generally represents lines of business that have been discontinued. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in other specialty business and property/short tail business. The increase in reinsurance premiums was primarily driven by property pro rata business and property catastrophe excess of loss business in the U.S., partially offset by actions taken on our U.S. reinsurance casualty business.

Previous wording

Net written premiums increased by 0.8% remaining relatively constant at $4.1 billion for the three months ended June 30, 2025, compared to $4.1 billion for the three months ended June 30, 2024, primarily driven by higher retention in certain lines of business and overall mix of business. Net written premiums decreased by 1.6% to $7.9 billion for the six months ended June 30, 2025, compared to $8.0 billion for the six months ended June 30, 2024. The larger percentage decrease in net written premiums compared to the percentage decrease in gross written premiums was mainly due to overall mix of business.

Current wording

Net written premiums decreased by 1.3% remaining relatively constant at $3.8 billion for the three months ended September 30, 2025, compared to $3.8 billion for the three months ended September 30, 2024, primarily driven by overall mix of business. Net written premiums decreased by 1.5% to $11.6 billion for the nine months ended September 30, 2025, compared to $11.8 billion for the nine months ended September 30, 2024. The larger percentage decrease in net written premiums compared to the percentage decrease in gross written premiums was mainly due to higher retention and overall mix of business.

Previous wording

Premiums earned increased by 8.1% to $4.0 billion during the three months ended June 30, 2025, compared to $3.7 billion during the three months ended June 30, 2024. Premiums earned increased by 6.8% to $7.8 billion for the six months ended June 30, 2025, compared to $7.3 billion for the six months ended June 30, 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.

Current wording

Premiums earned decreased by 1.6% to $3.9 billion during the three months ended September 30, 2025, compared to $3.9 billion during the three months ended September 30, 2024. Premiums earned increased by 3.9% to $11.7 billion for the nine months ended September 30, 2025, compared to $11.3 billion for the nine months ended September 30, 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.

Previous wording

Other Income (Expense). We recorded other expense of $27 million and other income of $23 million for the three months ended June 30, 2025 and 2024, respectively. We recorded other expense of $100 million and other income of $54 million for the six months ended June 30, 2025 and 2024, respectively. The changes were primarily the result of fluctuations in foreign currency exchange rates, in particular, the movements in the Euro and British Pound Sterling. We recognized foreign currency exchange expense of $60 million and foreign exchange currency income of $9 million for the three months ended June 30, 2025 and 2024, respectively. We recognized foreign currency exchange expense of $134 million and foreign currency exchange income of $41 million for the six months ended June 30, 2025 and 2024, respectively. The other expense incurred for the three and six months ended June 30, 2025 is partially offset by a $26.7 million pension plan settlement gain recognized in the second quarter of 2025 driven by the extinguishment of the Everest Reinsurance Company (“Everest Re”) retirement pension plan obligation liability.

Current wording

Other Income (Expense). We recorded other expense of $29 million and other expense of $102 million for the three months ended September 30, 2025 and 2024, respectively. We recorded other expense of $129 million and other expense of $48 million for the nine months ended September 30, 2025 and 2024, respectively. The changes were primarily the result of fluctuations in foreign currency exchange rates, in particular, the movements in the Euro and British Pound Sterling. We recognized foreign currency exchange expense of $33 million and foreign exchange currency expense of $102 million for the three months ended September 30, 2025 and 2024, respectively. We recognized foreign currency exchange expense of $165 million and foreign currency exchange expense of $61 million for the nine months ended September 30, 2025 and 2024, respectively. The other expense incurred for the nine months ended September 30,

Previous wording

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. Losses from natural catastrophes contributed 0.5 percentage points to the combined ratio for the three months ended June 30, 2025, compared with 4.1 percentage points in the corresponding period of 2024, and 7.1 percentage points to the combined ratio for the six months ended June 30, 2025, compared with 3.2 percentage points in the corresponding period of 2024.

Current wording

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. Losses from natural catastrophes contributed 1.3 percentage points to the combined ratio for the three months ended September 30, 2025, compared with 7.9 percentage points in the corresponding period of 2024, and 5.2 percentage points to the combined ratio for the nine months ended September 30, 2025, compared with 4.9 percentage points in the corresponding period of 2024.

Previous wording

Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased by 11.5% to $880 million for the three months ended June 30, 2025, compared to $790 million for the three months ended June 30, 2024. Commission, brokerage, taxes and fees increased by 8.4% to $1.7 billion for the six months ended June 30, 2025, compared to $1.6 billion for the six months ended June 30, 2024. The increases were primarily due to the impact of the increase in premiums earned and changes in the mix of business.

Current wording

Commission, Brokerage, Taxes and Fees. Commission, brokerage, taxes and fees increased by 7.8% to $890 million for the three months ended September 30, 2025, compared to $826 million for the three months ended September 30, 2024. Commission, brokerage, taxes and fees increased by 8.2% to $2.6 billion for the nine months ended September 30, 2025, compared to $2.4 billion for the nine months ended September 30, 2024. The increases were primarily due to the impact of change in profit commission from the mortgage business loss reserves decrease within the Reinsurance segment and overall mix of business.

Previous wording

Other Underwriting Expenses. Other underwriting expenses were $254 million and $234 million for the three months ended June 30, 2025 and June 30, 2024, respectively. Other underwriting expenses were $492 million and $458 million for the six months ended June 30, 2025 and 2024, respectively. The increases in other underwriting expenses were driven by the increase in premiums earned.

Current wording

Other Underwriting Expenses. Other underwriting expenses were $258 million and $236 million for the three months ended September 30, 2025 and September 30, 2024, respectively. Other underwriting expenses were $750 million and $694 million for the nine months ended September 30, 2025 and 2024, respectively. The increases in other underwriting expenses were driven by continued investment in insurance operations.

Previous wording

Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, were $31 million and $22 million for the three months ended June 30, 2025 and 2024, respectively, and $52 million and $44 million for the six months ended June 30, 2025 and 2024, respectively. The increase in Corporate expenses for the three and six month periods ended June 30, 2025 are primarily due to a nonrecurring adjustment due to the curtailment of the employee benefit plan in 2024 as well as an increase in professional services related to the continued build out of our infrastructure.

Current wording

Corporate Expenses. Corporate expenses, which are general operating expenses that are not allocated to segments, were $27 million and $25 million for the three months ended September 30, 2025 and 2024, respectively, and $79 million and $69 million for the nine months ended September 30, 2025 and 2024, respectively. The increases in Corporate expenses for the three and nine month periods ended September 30, 2025 are primarily due to a nonrecurring adjustment due to the curtailment of the employee benefit plan in 2024, as well as an increase in professional services related to the continued build out of our infrastructure.

Previous wording

Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $38 million and $37 million for the three months ended June 30, 2025 and 2024, respectively. Interest, fees and other bond amortization expense was $76 million and $75 million for the six months ended June 30, 2025 and 2024, respectively. The increases were mainly due to higher interest costs on the Federal Home Loan Bank of New York borrowing. Increases in interest expense were offset by a decrease 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 6.97% as of June 30, 2025, compared to 7.97% as of June 30, 2024.

Current wording

Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense remained consistent at $38 million for the three months ended September 30, 2025, compared to $38 million for the three months ended September 30, 2024. Interest, fees and other bond amortization expense increased to $114 million from $112 million for the nine months ended September 30, 2025 and 2024, respectively. The increase for the nine months ended September 30, 2025 was mainly due to higher interest costs on the Federal Home Loan Bank of New York borrowing, partially offset by a decrease 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 6.86% as of September 30, 2025, compared to 7.76% as of September 30, 2024.

Previous wording

Income Tax Expense (Benefit). Income tax expense was $135 million and $108 million for the three months ended June 30, 2025 and 2024, respectively. Income tax expense was $173 million and $207 million for the six months ended June 30, 2025 and 2024, respectively. The period over period increase in income tax expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions. The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends. 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.

Current wording

Income Tax Expense (Benefit). Income tax expense was $14 million and $68 million for the three months ended September 30, 2025 and 2024, respectively. Income tax expense was $187 million and $275 million for the nine months ended September 30, 2025 and 2024, respectively. The period over period decrease in income tax expense is primarily a function of the geographic location of the Company’s pre-tax income and the statutory tax rates in those jurisdictions. The effective tax rate (“ETR”) is primarily affected by tax-exempt investment income, foreign tax credits and dividends. 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.

Previous wording

On July 4, 2025, The One Big Beautiful Bill was signed into law. The Company is still evaluating the effects of the new law.

Current wording

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 the third quarter of 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.

Previous wording

Our net income was $680 million and $724 million for the three months ended June 30, 2025 and 2024, respectively. Our net income was $890 million and $1.5 billion for the six months ended June 30, 2025 and 2024, respectively. The period over period changes in net income were primarily driven by the financial component fluctuations explained above.

Current wording

Our net income was $255 million and $509 million for the three months ended September 30, 2025 and 2024, respectively. Our net income was $1.1 billion and $2.0 billion for the nine months ended September 30, 2025 and 2024, respectively. The period over period changes in net income were primarily driven by the financial component fluctuations explained above.

Previous wording

Our combined ratio increased by 0.1 points to 90.4% for the three months ended June 30, 2025, compared to 90.3% for the three months ended June 30, 2024 and increased by 6.8 points to 96.4% for the six months ended June 30, 2025, compared to 89.6% for the six months ended June 30, 2024. The current year increase is primarily due to higher catastrophe losses. Refer to the analysis of combined ratio components below.

Current wording

Our combined ratio increased by 10.3 points to 103.4% for the three months ended September 30, 2025, compared to 93.1% for the three months ended September 30, 2024 and increased by 7.9 points to 98.7% for the nine months ended September 30, 2025, compared to 90.8% for the nine months ended September 30, 2024. The current year increase is primarily due to higher attritional losses. Refer to the analysis of combined ratio components below.

Previous wording

The loss ratio component decreased by 0.7 points to 61.9% for the three months ended June 30, 2025, compared to 62.6% for the three months ended June 30, 2024, mainly due to a $131 million decrease in catastrophe losses. The loss ratio component increased by 6.5 points to 68.4% for the six months ended June 30, 2025, compared to 61.9% for the six months ended June 30, 2024, primarily due to an increase of $441 million in current year attritional losses, an increase of $318 million in current year catastrophe losses and unfavorable prior year development on attritional losses of $59 million, mainly related to aviation losses associated with the Russia/Ukraine war of $98 million, partially offset by net favorable prior year development of $39 million, driven by the release of reserves from prior underwriting years for the property line of business. The net unfavorable prior year loss development was recorded in the Reinsurance segment.

Current wording

The loss ratio component increased by 7.6 points to 73.6% for the three months ended September 30, 2025, compared to 66.0% for the three months ended September 30, 2024, mainly due to a $537 million increase in unfavorable development on prior year attritional losses, partially offset by a $260 million decrease in catastrophe losses. The loss ratio component increased by 6.8 points to 70.1% for the nine months ended September 30, 2025, compared to 63.3% for the nine months ended September 30, 2024, primarily due to an increase of $476 million in current year attritional losses, an increase of $58 million in current year catastrophe losses and unfavorable prior year development on attritional losses of $596 million.

Previous wording

The commission and brokerage ratio components increased to 22.0% for the three months ended June 30, 2025, compared to 21.4% for the three months ended June 30, 2024, and increased to 21.7% for the six months ended June 30, 2025, compared to 21.4% for the six months ended June 30, 2024. The quarter over quarter variance was mainly due to changes in the mix of business and consistent with increase in premiums earned.

Current wording

The commission and brokerage ratio components increased to 23.1% for the three months ended September 30, 2025, compared to 21.1% for the three months ended September 30, 2024, and increased to 22.2% for the nine months ended September 30, 2025, compared to 21.3% for the nine months ended September 30, 2024. The quarter over quarter increase was mainly due to changes in the mix of business and the change in profit commission from the mortgage business loss reserves decrease within the Reinsurance segment.

Previous wording

The other underwriting expense ratios increased to 6.4% for the three months ended June 30, 2025, compared to 6.3% for the three months ended June 30, 2024, and increased to 6.3% for the six months ended June 30, 2025, compared to 6.2% for the six months ended June 30, 2024. The slight increase for the three and six months was mainly due to growth while remaining relatively consistent year over year.

Current wording

The other underwriting expense ratios increased to 6.7% for the three months ended September 30, 2025, compared to 6.0% for the three months ended September 30, 2024, and increased to 6.4% for the nine months ended September 30, 2025, compared to 6.2% for the nine months ended September 30, 2024. The increase for the three and nine months was mainly due to growth in insurance operations.

Previous wording

Shareholders’ equity increased by $1.1 billion to $15.0 billion at June 30, 2025 from $13.9 billion at December 31, 2024, principally as a result of $890 million of net income, $597 million of unrealized appreciation on available for sale fixed maturity portfolio net of tax, $228 million of net foreign currency translation adjustments and $6 million of share-based compensation transactions, partially offset by $400 million of share repurchases, $169 million of shareholder dividends and $8 million of net benefit plan obligation adjustments.

Current wording

Shareholders’ equity increased by $1.5 billion to $15.4 billion at September 30, 2025 from $13.9 billion at December 31, 2024, principally as a result of $1.1 billion of net income, $762 million of unrealized appreciation on available for sale fixed maturity portfolio net of tax, $230 million of net foreign currency translation adjustments and $24 million of share-based compensation transactions, partially offset by $400 million of share repurchases, $253 million of shareholder dividends and $8 million of net benefit plan obligation adjustments.

Previous wording

Net investment income increased by 0.8% to $532 million for the three months ended June 30, 2025, compared with net investment income of $528 million for the three months ended June 30, 2024. The increase for the three months ended June 30, 2025 was primarily the result of an increase of $27 million in income from fixed maturity investments, partially offset by a decline of $10 million in income from short-term investments, a decline of $8 million in income from other alternative investments and a decline of $5 million in limited partnership income. Net investment income increased by 3.9% to $1.0 billion for the six months ended June 30, 2025, compared with investment income of $1.0 billion for the six months ended June 30, 2024. The increase for the six months ended June 30, 2025 was primarily the result of an increase of $61 million of income from fixed maturity investments, an increase of $2 million in income from other alternative investments and an increase of $1 million from short-term investments, partially offset by a decline of $35 million in limited partnership income. The limited partnership income primarily reflects changes in reported net asset values. As such, until these asset values are monetized and the resultant income is distributed, they are subject to volatile results of future increases or decreases in the asset value.

Current wording

Net investment income increased by 8.8% to $540 million for the three months ended September 30, 2025, compared with net investment income of $496 million for the three months ended September 30, 2024. The increase for the three months ended September 30, 2025 was primarily the result of an increase of $41 million in limited partnership income and an increase of $12 million in income from fixed maturity investments, partially offset by a decline of $11 million in income from short-term investments. Net investment income increased by 5.5% to $1.6 billion for the nine months ended September 30, 2025, compared with investment income of $1.5 billion for the nine months ended September 30, 2024. The increase for the nine months ended September 30, 2025 was primarily the result of an increase of $73 million of income from fixed maturity investments, an increase of $6 million in limited partnership income and an increase of $2 million in income from other alternative investments, partially offset by a decline of $10 million from short-term investments. The limited partnership income primarily reflects changes in reported net asset values. As such, until these asset values are monetized and the resultant income is distributed, they are subject to volatile results of future increases or decreases in the asset value.

Previous wording

Total net gains (losses) on investments during the three months ended June 30, 2025 primarily consist of $8 million of losses due to the disposition of investments and an increase to the allowance for credit losses of $2 million, partially offset by $5 million of gains from fair value adjustments on equity securities.

Current wording

Total net gains (losses) on investments during the three months ended September 30, 2025 primarily consist of $36 million of losses due to the disposition of investments and an increase to the allowance for credit losses of $12 million.

Previous wording

Total net gains (losses) on investments during the six months ended June 30, 2025 primarily relate to $13 million of net losses due to the disposition of investments and an increase to the allowance for credit losses of $2 million, partially offset by $3 million of gains from fair value adjustments on equity securities.

Current wording

Total net gains (losses) on investments during the nine months ended September 30, 2025 primarily relate to $49 million of net losses due to the disposition of investments and an increase to the allowance for credit losses of $14 million, partially offset by $3 million of gains from fair value adjustments on equity securities.

Previous wording

Premiums. Gross written premiums increased by 1.1% remaining relatively constant at $3.2 billion for the three months ended June 30, 2025 from $3.2 billion for the three months ended June 30, 2024, primarily driven by property pro rata business and property catastrophe excess of loss business, partially offset by a decrease in financial lines business driven by actions taken on our North America casualty business. Gross written premiums increased by 1.2% to $6.5 billion for the six months ended June 30, 2025 from $6.4 billion for the six months ended June 30, 2024, primarily due to property pro rata business and property catastrophe excess of loss business, partially offset by actions taken on our North America reinsurance casualty business.

Current wording

Premiums. Gross written premiums decreased by 1.8% to $3.2 billion for the three months ended September 30, 2025, compared to $3.3 billion for the three months ended September 30, 2024, primarily driven by the effects of underwriting actions on U.S. 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. Gross written premiums increased by 0.2% to $9.7 billion for the nine months ended September 30, 2025, compared to $9.6 billion for the nine months ended September 30, 2024, primarily driven by property pro rata business and property catastrophe excess of loss business in the U.S., partially offset by actions taken on our U.S. reinsurance casualty business.

Previous wording

Premiums earned increased by 11.2% to $3.0 billion for the three months ended June 30, 2025, compared to $2.7 billion for the three months ended June 30, 2024. Premiums earned increased by 8.8% to $5.9 billion for the six months ended June 30, 2025, compared to $5.5 billion for the six months ended June 30, 2024. The growth in premiums earned is primarily driven by increased property pro rata business written that was recorded over the prior quarters which are now being earned. 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.

Current wording

Premiums earned decreased by 2.6% to $2.9 billion for the three months ended September 30, 2025, compared to $3.0 billion for the three months ended September 30, 2024, comparable to the decrease in net written premium. Premiums earned increased by 4.8% to $8.8 billion for the nine months ended September 30, 2025, compared to $8.4 billion for the nine months ended September 30, 2024, primarily driven by increased property pro rata business written that was recorded over the prior quarters which are now being earned. 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.

Previous wording

Segment Expenses. Commission and brokerage expense increased by 12.0% to $753 million for the three months ended June 30, 2025, compared to $672 million for the three months ended June 30, 2024. Commission and brokerage expense increased by 8.7% to $1.5 billion for the six months ended June 30, 2025, compared to $1.3 billion for the six months ended June 30, 2024. The increases were mainly due to the impact of the increase in premiums earned and changes in the mix of business.

Current wording

Segment Expenses. Commission and brokerage expense increased by 7.5% to $764 million for the three months ended September 30, 2025, compared to $710 million for the three months ended September 30, 2024. Commission and brokerage expense increased by 8.3% to $2.2 billion for the nine months ended September 30, 2025, compared to $2.1 billion for the nine months ended September 30, 2024. The increases were mainly due to the impact of the increase in premiums earned, mortgage-related contingent commissions and changes in the mix of business.

Previous wording

Segment other underwriting expenses increased to $76 million for the three months ended June 30, 2025 from $72 million for the three months ended June 30, 2024. Segment other underwriting expenses increased to $147 million for the six months ended June 30, 2025, compared to $142 million for the six months ended June 30, 2024. The increases were mainly due to increased expenditures supporting the increased premium volume of the segment.

Current wording

Segment other underwriting expenses increased to $74 million for the three months ended September 30, 2025, compared to $73 million for the three months ended September 30, 2024. Segment other underwriting expenses increased to $221 million for the nine months ended September 30, 2025, compared to $215 million for the nine months ended September 30, 2024. Quarter to date remained relatively consistent with written premium movement, while the increase in year to date was mainly due to increased expenditures supporting premium volume of the segment.

Previous wording

Premiums. Gross written premiums decreased by 3.1% to $1.4 billion for the three months ended June 30, 2025, compared to $1.5 billion for the three months ended June 30, 2024. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in other specialty business and accident and health business. Gross written premiums decreased by 2.3% to $2.6 billion for the six months ended June 30, 2025, compared to $2.6 billion for the six months ended June 30, 2024. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business, partially offset by an increase in other specialty business and property/short tail business.

Current wording

Premiums. Gross written premiums increased by 3.4% remaining relatively constant at $1.1 billion for the three months ended September 30, 2025, compared to $1.1 billion for the three months ended September 30, 2024. The increase in insurance premiums was primarily due to an increase in accident and health business, increases in professional liability business and other specialty business within the U.S. portfolio, and increases in property/short tail business in Latin America and Singapore, partially offset by portfolio actions taken on specialty casualty lines of business in the U.S. portfolio. Gross written premiums decreased by 0.6% remaining relatively constant at $3.7 billion for the nine months ended September 30, 2025, compared to $3.7 billion for the nine months ended September 30, 2024. The decrease in insurance premiums was primarily due to portfolio actions taken on specialty casualty lines of business in the U.S. portfolio, partially offset by an increase in other specialty business and property/short tail business driven by emerging growth in Colombia, Mexico, and contributions from Ireland and Lloyds.

Previous wording

Net written premiums increased by 1.3% remaining constant at $1.0 billion for the three months ended June 30, 2025, compared to $1.0 billion for the three months ended June 30, 2024, primarily due to business mix and higher retention in certain lines of business. Net written premiums of $1.9 billion for the six months ended June 30, 2025, remained consistent with the $1.9 billion for the six months ended June 30, 2024.

Current wording

Net written premiums increased by 7.5% to $848 million for the three months ended September 30, 2025, compared to $789 million for the three months ended September 30, 2024. Net written premiums increased by 2.7% to $2.8 billion for the nine months ended September 30, 2025, compared to $2.7 billion for the nine months ended September 30, 2024. The increases were primarily due to business mix and higher retention in certain lines of business.

Previous wording

Premiums earned increased by 1.1% to $920 million for the three months ended June 30, 2025, compared to $910 million for the three months ended June 30, 2024. Premiums earned increased by 2.9% to $1.8 billion for the six months ended June 30, 2025, compared to $1.8 billion for the six months ended June 30, 2024. The change in premiums earned relative to net written premiums is 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.

Current wording

Premiums earned increased by 4.6% to $939 million for the three months ended September 30, 2025, compared to $898 million for the three months ended September 30, 2024. Premiums earned increased by 3.5% to $2.8 billion for the nine months ended September 30, 2025, compared to $2.7 billion for the nine months ended September 30, 2024. The change in premiums earned relative to net written premiums is 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.

Previous wording

California wildfires ($7 million) and the 2025 U.S. Midwest convective storms ($5 million). The $20 million of current year catastrophe losses for the six months ended June 30, 2024 related to the 2024 second quarter U.S. convective storms ($12 million), the 2024 Baltimore bridge collapse ($4 million), the 2024 Taiwan earthquake ($2 million) and the 2024 Germany floods ($1 million).

Current wording

The current year catastrophe losses of $25 million for the nine months ended September 30, 2025 related primarily to the first quarter 2025 Myanmar earthquake ($8 million), the 2025 Southern California wildfires ($7 million), the 2025 U.S. Midwest convective storms ($5 million) and the 2025 U.S. September floods ($5 million). The $60 million of current year catastrophe losses for the nine months ended September 30, 2024 related to Hurricane Helene ($16 million), Hurricane Beryl ($11 million), the 2024 second quarter U.S. convective storms ($10 million), the 2024 Jasper fires ($6 million), the third quarter 2024 Calgary Alberta storms ($6 million) and the 2024 Baltimore bridge collapse ($5 million).

Previous wording

Segment Expenses. Commission and brokerage expenses increased by 8.9% to $121 million for the three months ended June 30, 2025, compared to $111 million for the three months ended June 30, 2024. Commission and brokerage expenses increased by 8.6% to $233 million for the six months ended June 30, 2025, compared to $215 million for the six months ended June 30, 2024. The increases were mainly due to changes in the mix of business.

Current wording

Segment Expenses. Commission and brokerage expenses increased by 10.1% to $121 million for the three months ended September 30, 2025, compared to $110 million for the three months ended September 30, 2024. Commission and brokerage expenses increased by 9.1% to $355 million for the nine months ended September 30, 2025, compared to $325 million for the nine months ended September 30, 2024. The increases were mainly due to changes in the mix of business.

Previous wording

Segment other underwriting expenses increased to $174 million for the three months ended June 30, 2025, compared to $154 million for the three months ended June 30, 2024. Segment other underwriting expenses increased to $339 million for the six months ended June 30, 2025, compared to $300 million for the six months ended June 30, 2024. These increases were mainly due to the impact of the increase in premiums earned and increased expenses related to the continued investment of the international insurance platform.

Current wording

Segment other underwriting expenses increased to $178 million for the three months ended September 30, 2025, compared to $154 million for the three months ended September 30, 2024. Segment other underwriting expenses increased to $518 million for the nine months ended September 30, 2025, compared to $454 million for the nine months ended September 30, 2024. These increases were mainly due to the impact of the continued investment in insurance operations.

Previous wording

Incurred Losses and LAE. Incurred losses and LAE increased by 46.5% to $58 million for the three months ended June 30, 2025, compared to $39 million for the three months ended June 30, 2024. Incurred losses and LAE increased by 2.3% to $87 million for the six months ended June 30, 2025, compared to $85 million for the six months ended June 30, 2024. The increase in incurred losses was due to $20 million of catastrophe losses related to the sports and leisure business and a $20 million strengthening of reserves on the current accident year on lines within this segment.

Current wording

Incurred Losses and LAE. Incurred losses and LAE increased to $163 million for the three months ended September 30, 2025, compared to $37 million for the three months ended September 30, 2024. Incurred losses and LAE increased to $250 million for the nine months ended September 30, 2025, compared to $122 million for the nine months ended September 30, 2024. The increase in incurred losses was due to unfavorable development on prior year attritional losses driven by U.S. casualty lines, primarily from our sports and leisure business.

Previous wording

Investments. Total investments were $42.4 billion at June 30, 2025, an increase of $2.4 billion compared to $40.0 billion at December 31, 2024. The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $3.4 billion, partially offset by a decrease in short-term investment due to an overall net sale of $2.3 billion during the six months ended June 30, 2025.

Current wording

Investments. Total investments were $44.3 billion at September 30, 2025, an increase of $4.3 billion compared to $40.0 billion at December 31, 2024. The rise in investments was primarily related to an increase in fixed maturities - available for sale due to an overall net purchase of $3.7 billion, partially offset by a decrease in short-term investment due to an overall net sale of $945 million during the nine months ended September 30, 2025.

Previous wording

Reinsurance recoverables for both paid and unpaid losses totaled $3.5 billion and $3.1 billion at June 30, 2025 and December 31, 2024, respectively. At June 30, 2025, $411 million, or 11.7%, was receivable from Mt. Logan Re collateralized segregated accounts; $341 million, or 9.7%, was receivable from Munich Reinsurance America, Inc. and $253 million, or 7.2% was receivable from Endurance Assurance Corporation. No other retrocessionaire accounted for more than 5% of our recoverables.

Current wording

Reinsurance recoverables for both paid and unpaid losses totaled $3.9 billion and $3.1 billion at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025, $405 million, or 10.4%, was receivable from Mt. Logan Re collateralized segregated accounts; $391 million, or 10.0%, was receivable from Munich Reinsurance America, Inc. and $301 million, or 7.7% was receivable from Endurance Assurance Corporation. No other retrocessionaire accounted for more than 5% of our recoverables.

Previous wording

Loss and LAE Reserves. Gross loss and LAE reserves totaled $32.5 billion and $29.9 billion at June 30, 2025 and December 31, 2024, respectively.

Current wording

Loss and LAE Reserves. Gross loss and LAE reserves totaled $33.7 billion and $29.9 billion at September 30, 2025 and December 31, 2024, respectively.

Previous wording

(1)Reserves for A&E exposures are included within Other. At June 30, 2025, A&E Case and IBNR reserves totaled $149 million and $92 million, respectively.

Current wording

(1)Reserves for A&E exposures are included within Other. At September 30, 2025, A&E case and IBNR reserves totaled $156 million and $68 million, respectively.

Previous wording

With respect to asbestos only, at June 30, 2025, we had net asbestos loss reserves of $198 million, or 88.8%, of total net A&E reserves, all of which was for assumed business. At June 30, 2025, we had gross asbestos loss reserves of $216 million, or 89.6% of total gross A&E reserves, all of which was for assumed business.

Current wording

With respect to asbestos only, at September 30, 2025, we had net asbestos loss reserves of $183 million, or 88.6%, of total net A&E reserves, all of which was for assumed business. At September 30, 2025, we had gross asbestos loss reserves of $200 million, or 89.5% of total gross A&E reserves, all of which was for assumed business.

Previous wording

Industry analysts use the “survival ratio” to compare the A&E reserves among companies with such liabilities. The survival ratio is typically calculated by dividing a company’s current net reserves by the three-year average of annual paid losses. Hence, the survival ratio equals the number of years that it would take to exhaust the current reserves if future loss payments were to continue at historical levels. Using this measurement, our net three-year asbestos survival ratio was 6.7 years at June 30, 2025. These metrics can be skewed by individual large settlements occurring in the prior three years and therefore may not be indicative of the timing of future payments.

Current wording

Industry analysts use the “survival ratio” to compare the A&E reserves among companies with such liabilities. The survival ratio is typically calculated by dividing a company’s current net reserves by the three-year average of annual paid losses. Hence, the survival ratio equals the number of years that it would take to exhaust the current reserves if future loss payments were to continue at historical levels. Using this measurement, our net three-year asbestos survival ratio was 5.5 years at September 30, 2025 and 6.6 years at December 31, 2024. These metrics can be skewed by individual large settlements occurring in the prior three years and therefore may not be indicative of the timing of future payments.

Previous wording

Capital. Shareholders’ equity at June 30, 2025 and December 31, 2024 was $15.0 billion and $13.9 billion, respectively. Management’s objective in managing capital is to ensure that the Company’s overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company’s capital has historically exceeded these benchmark levels.

Current wording

Capital. Shareholders’ equity at September 30, 2025 and December 31, 2024 was $15.4 billion and $13.9 billion, respectively. Management’s objective in managing capital is to ensure that the Company’s overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company’s capital has historically exceeded these benchmark levels.