MARKEL GROUP INC.

Previous wording

Markel Group is a holding company comprised of a diverse family of businesses and investments. The leadership teams of our businesses operate with a high degree of independence, while at the same time living the values that we call the Markel Style. Our specialty insurance business sits at the core of our company. Through decades of sound underwriting, our specialty insurance business has provided the capital base from which we built a system of businesses and investments that collectively increase Markel Group's durability and adaptability. We aspire to build one of the world's great companies by creating win-win-win outcomes for our customers, associates and shareholders. We deploy three financial engines in pursuit of this goal.

Current wording

Markel Group is a holding company comprised of a diverse family of businesses and investments. The leadership teams of our businesses operate with a high degree of independence, while at the same time living the values that we call the Markel Style. Our specialty insurance business, Markel Insurance, sits at the core of our company. Through decades of sound underwriting, Markel Insurance has provided the capital base from which we built a system of businesses and investments that collectively increase Markel Group's durability and adaptability. We aspire to build one of the world's great companies by creating win-win-win outcomes for our customers, associates and shareholders. We deploy three financial engines in pursuit of this goal.

Previous wording

Insurance - markets and underwrites specialty insurance products using our underwriting, program services and insurance-linked securities platforms that enable us to best match risk and capital

Current wording

Insurance - markets and underwrites specialty insurance products

Previous wording

Investments - invests capital held within our underwriting operations, as well as capital allocated by Markel Group, in fixed maturity and equity securities

Current wording

Investments - invests capital held within our insurance operations, as well as capital allocated by Markel Group, in fixed maturity and equity securities

Previous wording

Our insurance operations are comprised of the following types of businesses:

Current wording

Our insurance operations are comprised of the following businesses:

Previous wording

•Insurance-linked securities (ILS) - investment management platform for third-party capital providers to invest in a variety of insurance-related investment products.

Current wording

•Nephila - insurance-linked securities (ILS) investment manager

Previous wording

Through our underwriting, program services and ILS operations, we have a suite of capabilities through which we can access capital to support our customers' risks, which includes our own capital through our underwriting operations, as well as third-party capital through our program services and ILS operations. We seek to differentiate ourselves from competitors by our specialized product expertise, exceptional customer service, continuity and other value-based considerations, including the multiple platforms through which we can manage risk and deploy capital. For example, within our ILS platform, we leverage the capabilities of our highly rated underwriting subsidiaries to front reinsurance contracts in support of our ILS business plans. Additionally, in 2024, our program services platform partnered with our international underwriting operations to expand our program services offerings internationally. Our ability to access multiple insurance platforms allows us to achieve income streams from our insurance operations beyond the traditional underwriting model, which enhances our return profile.

Current wording

Within our insurance operations, we have a suite of capabilities through which we can access capital to support our customers' risks, which includes our own capital, as well as third-party capital through our State National and Nephila businesses. We seek to differentiate ourselves from competitors by our specialized product expertise, exceptional customer service, continuity and other value-based considerations, including the multiple platforms through which we can manage risk and deploy capital. For example, we leverage the capabilities of our highly rated underwriting subsidiaries to front reinsurance contracts in support of Nephila's business plans. Additionally, in 2024, State National partnered with Markel Insurance's International division to expand State National's fronting services internationally.

Previous wording

Our Reinsurance segment includes casualty and specialty treaty reinsurance products offered to other insurance and reinsurance companies. We write quota share and excess of loss reinsurance on a local, national and global basis. Business in this segment is primarily written by our Global Reinsurance division. Principal lines of business include: general liability, professional liability, credit and surety, marine and energy and workers' compensation.

Current wording

The Global Reinsurance division includes casualty and specialty reinsurance products offered to other insurance and reinsurance companies. Principal lines of business include general liability, professional liability, marine and energy, workers' compensation and credit and surety.

Previous wording

Our program services business, which is provided through our State National division, generates fee revenues in the form of ceding fees in exchange for fronting insurance and reinsurance business for other insurance carriers (capacity providers). Our State National division is managed separately from our underwriting divisions. The results of our program services operations are reported within our other insurance operations and are not included in a reportable segment.

Current wording

Our State National business consists of program services and lender services operations. The program services operations generate fee revenues in the form of ceding fees in exchange for fronting insurance and reinsurance business for other insurance carriers. The lender services operations write collateral protection insurance on a risk-bearing basis for automobile and other vehicle loans in the U.S. The results of our State National business are reported within our other insurance operations and are not included in a reportable segment.

Previous wording

Although we reinsure substantially all of the risks inherent in our program services business, we have certain programs that contain limits on our reinsurers' obligations to us that expose us to underwriting risk, including loss ratio caps, aggregate reinsurance limits or exclusion of the credit risk of producers. Under certain programs, we also bear underwriting risk for annual aggregate agreement year losses in excess of a limit that we believe is unlikely to be exceeded.

Current wording

Although we reinsure substantially all of the risks inherent in our program services operations, we have certain programs that contain limits on our reinsurers' obligations to us that expose us to underwriting risk, including loss ratio caps, aggregate reinsurance limits or exclusion of the credit risk of producers. Under certain programs, we also bear underwriting risk for annual aggregate agreement year losses in excess of a limit that we believe is unlikely to be exceeded.

Previous wording

Nephila Holdings Ltd. (together with its subsidiaries, Nephila) provides investment and insurance management services to investors through which we offer alternative capital to the insurance and reinsurance markets while providing the investors with investment strategies that typically are uncorrelated with traditional asset classes. Our insurance-linked securities operations, which are provided through our Nephila division, generate fee revenues in the form of management fees for investment management services and ceding fees for business fronted by our licensed insurance subsidiaries to support the investors' underlying portfolio of risks. These operations are reported within our other insurance operations and are not included in a reportable segment.

Current wording

Nephila Holdings Ltd. (together with its subsidiaries, Nephila) provides insurance-linked securities investment and insurance management services to investors through which it offers alternative capital to the insurance and reinsurance markets while providing the investors with investment strategies that typically are uncorrelated with traditional asset classes. Nephila generates fee revenues in the form of management fees for investment management services. The results of Nephila are reported within our other insurance operations and are not included in a reportable segment.

Previous wording

See note 9 of the notes to consolidated financial statements for further details regarding transactions with entities managed through our Nephila operations.

Current wording

See note 9 of the notes to consolidated financial statements for further details regarding transactions with entities managed through our Nephila operations, which include several Bermuda-based private funds (the Nephila Funds) and Bermuda-licensed reinsurers and Lloyd's syndicates (collectively, the Nephila Reinsurers).

Previous wording

Our investment operations manage the capital held within our underwriting operations, as well as capital held by the Markel Group holding company. Invested assets managed through our investment operations include our portfolio of publicly traded fixed maturity and equity securities, as well as cash and short-term investments. Substantially all of our investment portfolio is managed by company employees, which helps minimize costs in our investment operations.

Current wording

Our investment operations manage the capital held within our insurance operations, as well as capital held by the Markel Group holding company. Invested assets managed through our investment operations include our portfolio of publicly traded fixed maturity and equity securities, as well as cash and short-term investments. Substantially all of our investment portfolio is managed by company employees, which helps minimize costs in our investment operations.

Previous wording

Our underwriting operations provide our investment operations with steady inflows of premiums. These funds are invested predominantly in high-quality government and municipal bonds and mortgage-backed securities that generally match the duration and currency of our loss reserves. We typically hold these investments until maturity. As a result, unrealized holding gains and losses on these securities are generally expected to reverse as the securities mature. Premiums collected through our underwriting operations may also be held as short-term investments or cash and cash equivalents to provide short-term liquidity for projected claims payments, reinsurance costs and operating expenses.

Current wording

Our insurance operations provide our investment operations with steady inflows of premiums. These funds are invested predominantly in high-quality government and municipal bonds and mortgage-backed securities that generally match the duration and currency of our loss reserves. We typically hold these investments until maturity. As a result, unrealized holding gains and losses on these securities are generally expected to reverse as the securities mature. Premiums collected through our insurance operations may also be held as short-term investments or cash and cash equivalents to provide short-term liquidity for projected claims payments, reinsurance costs and operating expenses.

Previous wording

Underwriting profits are a key component of our strategy to build shareholder value. The property and casualty insurance industry commonly defines underwriting profit or loss as earned premiums net of losses and loss adjustment expenses and underwriting, acquisition and insurance expenses. We use underwriting profit or loss and the combined ratio as a basis for evaluating our underwriting performance. The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. The combined ratio is the sum of the loss ratio and the expense ratio. The loss ratio represents the relationship of incurred losses and loss adjustment expenses to earned premiums. The expense ratio represents the relationship of underwriting, acquisition and insurance expenses to earned premiums. A combined ratio less than 100% indicates an underwriting profit, while a combined ratio greater than 100% reflects an underwriting loss.

Current wording

Underwriting profits are a key component of our strategy to build shareholder value through our Markel Insurance business. The property and casualty insurance industry commonly defines underwriting profit or loss as earned premiums net of losses and loss adjustment expenses and underwriting, acquisition and insurance expenses. We use underwriting profit or loss and the combined ratio as a basis for evaluating our underwriting performance. The U.S. GAAP combined ratio is a measure of underwriting performance and represents the relationship of incurred losses, loss adjustment expenses and underwriting, acquisition and insurance expenses to earned premiums. The combined ratio is the sum of the loss ratio and the expense ratio. The loss ratio represents the relationship of incurred losses and loss adjustment expenses to earned premiums. The expense ratio represents the relationship of underwriting, acquisition and insurance expenses to earned premiums. A combined ratio less than 100% indicates an underwriting profit, while a combined ratio greater than 100% reflects an underwriting loss.

Previous wording

When analyzing our loss ratio, we typically evaluate losses and loss adjustment expenses attributable to the current accident year separate from losses and loss adjustment expenses attributable to prior accident years. Prior accident year reserve development, which can either be favorable or unfavorable, represents changes in our estimates of losses and loss adjustment expenses related to loss events that occurred in prior years. We believe a discussion of current accident year loss ratios that exclude prior accident year reserve development is helpful in most cases since it provides more insight into estimates of current underwriting performance and excludes changes in estimates related to prior year loss reserves. We also analyze our current accident year loss ratio excluding losses and loss adjustment expenses attributable to catastrophes. The current accident year loss ratio excluding the impact of catastrophes and other significant, infrequent loss events is also commonly referred to as an attritional loss ratio within the property and casualty insurance industry.

Current wording

When analyzing our loss ratio, we typically evaluate losses and loss adjustment expenses attributable to the current accident year separate from losses and loss adjustment expenses attributable to prior accident years. Prior accident year reserve development, which can either be favorable or unfavorable, represents changes in our estimates of losses and loss adjustment expenses related to loss events that occurred in prior years. We believe a discussion of current accident year loss ratios that exclude prior accident year reserve development is helpful in most cases since it provides more insight into estimates of current underwriting performance and excludes changes in estimates related to prior year loss reserves.

Previous wording

The increase in gross premium volume in our underwriting operations for the three months ended March 31, 2025 was driven by higher premium volume across both of our underwriting segments. Net retention of gross premium volume in our underwriting operations was 81% for the three months ended March 31, 2025 compared to 80% for the same period of 2024. The increase in net retention was driven by higher retention within our Reinsurance segment. Within our underwriting operations, we purchase reinsurance and retrocessional reinsurance to manage our net retention on individual risks and overall exposure to losses and to enable us to write policies with sufficient limits to meet policyholder needs. The decrease in earned premiums in our underwriting operations for the three months ended March 31, 2025 was primarily attributable to lower gross premium volume within our Insurance segment in recent periods.

Current wording

Net retention of underwriting gross premium volume for both the quarters ended June 30, 2025 and 2024 was 77%. Net retention of underwriting gross premium volume was 79% for both the six months ended June 30, 2025 and 2024. Within our underwriting operations, we purchase reinsurance and retrocessional reinsurance to manage our net retention on individual risks and overall exposure to losses and to enable us to write policies with sufficient limits to meet policyholder needs.

Previous wording

In the first quarter of 2025, we achieved modest rate increases across our diversified product portfolio. We examine each of our product classes regularly by evaluating pricing and exposure, underwriting terms and conditions, deal structure, including limits and attachment points, and our expectations around loss cost trends, among other things. We target premium growth only in product lines where we are confident in the levels of rate adequacy.

Current wording

In the first half of 2025, we achieved modest rate increases across our diversified product portfolio. We examine each of our product classes regularly by evaluating pricing and exposure, underwriting terms and conditions, deal structure, including limits and attachment points, and our expectations around loss cost trends, among other things. We target premium growth only in product lines where we are confident in the levels of rate adequacy.

Previous wording

Product lines achieving the most notable rate increases include our U.S. general liability product lines, as well as certain personal lines and programs. We continue to be cautious in selecting which risks to pursue and how much limit to deploy within certain subclasses of our U.S. general liability portfolio as we rebalance our portfolio, however the rate increases have generally been in line with, or better than, our assumptions on loss cost trends. As a result of the rate increases being achieved in our personal lines and programs product lines, we are increasing our premium writings in these lines. Product lines with notable rate decreases include our workers' compensation, energy and cyber portfolios. Additionally, we are seeing small rate decreases on our property product lines as increased capacity is putting pressure on the rate environment.

Current wording

Product lines achieving the most notable rate increases include our U.S. general liability product lines, as well as certain personal lines and programs product lines. We continue to be cautious in selecting which risks to pursue and how much limit to deploy within certain subclasses of our U.S. general liability portfolio as we rebalance our portfolio, however the rate increases have generally been in line with, or better than, our assumptions on loss cost trends. As a result of the rate increases being achieved in our personal lines and programs product lines, we are increasing our premium writings in these lines.

Previous wording

Within our U.S. professional liability product lines, we saw modest rate increases on certain subclasses and continued rate decreases within our risk-managed directors and officers product line. In our international professional liability portfolio, we are generally seeing modest rate decreases; however, we believe these pockets of the portfolio are adequately priced overall. We are opportunistically growing premiums in our professional liability lines within those subclasses where we believe the current rates are adequate.

Current wording

Within our professional liability product lines, we are seeing moderate rate decreases on many of our subclasses. In our international professional liability portfolio, we believe the business is adequately priced overall, and we are opportunistically growing premiums within those subclasses where we believe the current rates are sufficient to meet our profitability targets.

Previous wording

The net losses and loss adjustment expenses attributed to the California Wildfires as of March 31, 2025 represent our best estimate based upon information currently available. Our estimate for these losses is based on claims received, policy level reviews and analysis of ceded reinsurance contracts. This estimate is based on various assumptions about coverage and liability and is therefore subject to change. While we believe our net reserves for the California Wildfires as of March 31, 2025 are adequate, we continue to closely monitor reported claims and may adjust our estimate of ultimate net losses as new information becomes available.

Current wording

Underwriting results for the six months ended June 30, 2025 included $60.9 million of net losses and loss adjustment expenses attributed to the series of wildfires that occurred in southern California in January 2025 (California Wildfires). In the second quarter of 2025, we reduced our initial estimate of losses attributable to the California Wildfires by $5.2 million as more information became available. While we believe our net reserves for the California Wildfires as of June 30, 2025 are adequate, we continue to closely monitor reported claims and may further adjust our estimate of ultimate net losses as new information becomes available.

Previous wording

We have continued to recognize losses on our discontinued intellectual property collateral protection insurance (IP CPI) product line into 2025, in amounts consistent with our expectations. For the three months ended March 31, 2025, net losses and loss adjustment expenses on our IP CPI product line totaled $16.2 million, or one point on both our consolidated and Insurance segment combined ratios. Net losses and loss adjustment expenses on our IP CPI product line for the three months ended March 31, 2024 were $40.4 million, or two points on both our consolidated and Insurance segment combined ratios. We continue to believe the amount of losses on this product line in 2025 is likely to be less than what we recognized in 2024.

Current wording

We have continued to recognize losses on our discontinued IP CPI product line in 2025, in amounts consistent with our expectations. For the quarter and six months ended June 30, 2025, net losses and loss adjustment expenses on our IP CPI product line totaled $26.4 million and $42.6 million, respectively, or one point on both the quarter-to-date and year-to-date Markel Insurance segment combined ratios. Net losses and loss adjustment expenses on our IP CPI product line for the quarter and six months ended June 30, 2024 were $56.4 million and $96.8 million, respectively, or three and two points, on the quarter-to-date and year-to-date Markel Insurance segment combined ratios, respectively. We believe the amount of losses on this product line in 2025 will be less than what we recognized in 2024.

Previous wording

The increase in the Insurance segment's expense ratio for the three months ended March 31, 2025 compared to the same period of 2024 was primarily attributable to higher personnel costs and professional fees and the unfavorable impact of lower earned premiums.

Current wording

The increase in the Markel Insurance segment's expense ratio for the quarter ended June 30, 2025 compared to the same period of 2024 was primarily attributable to higher personnel costs, including increased severance costs related to recent organizational changes, and professional fees, including costs incurred in connection with activist shareholder activities and the Board-led review.

Previous wording

Excluding losses attributed to natural catastrophes, the decrease in our consolidated combined ratio for the three months ended March 31, 2025 was primarily attributable to more favorable development on prior accident years loss reserves in 2025 compared to 2024 across both of our underwriting segments.

Current wording

Excluding losses attributed to natural catastrophes, the modest increase in the Markel Insurance segment's combined ratio for the six months ended June 30, 2025 compared to the same period of 2024 was primarily attributable to a higher expense ratio.

Previous wording

The Insurance segment's combined ratio for the three months ended March 31, 2025 included $126.5 million of favorable development on prior accident years loss reserves compared to $97.2 million for the same period of 2024. The increase in favorable development was primarily attributable to favorable development in our U.S. professional liability product lines in 2025 compared adverse development in 2024. For the three months ended March 31, 2025, favorable development was most significant on our professional liability and general liability product lines on recent accident years. These accident years have developed consistently with our actuaries' expectations, and therefore, we have decreased the level of caution in our loss reserves. The favorable development on prior years loss reserves in 2024 was most significant on our international professional liability and marine and energy product lines, as well as on our general liability product lines.

Current wording

The Markel Insurance segment's combined ratio for the six months ended June 30, 2025 included $227.8 million of favorable development on prior accident years loss reserves compared to $224.1 million for the same period of 2024. For the six months ended June 30, 2025, favorable development was most significant on the more recent accident years within our marine and energy, property, professional liability and workers' compensation product lines. Favorable development on our professional liability product lines in the first half of 2025 was net of adverse development on our run-off risk-managed directors and officers product lines, as previously discussed. Favorable development on prior years loss reserves in the first half of 2024 was most significant on our international professional liability and marine and energy product lines, as well as our property product lines.

Previous wording

The decrease in the Reinsurance segment's expense ratio for the three months ended March 31, 2025 compared to the same period of 2024 was primarily attributable to a lower policy acquisition cost ratio due to changes in mix of business.

Current wording

The increase in the Markel Insurance segment's expense ratio for the six months ended June 30, 2025 compared to the same period of 2024 was due to the same factors as discussed on a quarter-to-date basis.

Previous wording

The following table presents the components of operating revenues and operating income attributable to our other insurance operations, which are not included in a reportable segment. We do not allocate amortization of acquired intangible assets to our operating segments, including our other insurance operations.

Current wording

The following tables present the components of operating revenues and operating income attributable to our other insurance businesses, which are not included in a reportable segment. We do not allocate amortization of acquired intangible assets to our operating segments, including our other insurance operations.

Previous wording

(2) Results attributable to Markel CATCo Re Ltd. (Markel CATCo Re) for both periods were entirely attributable to noncontrolling interest holders in Markel CATCo Re.

Current wording

(1) Other is primarily comprised of the results attributable to our minority investment in Velocity Holdco, LLC (Velocity) and to Markel CATCo Re (MCRe). Results attributable to MCRe for both periods were entirely attributable to noncontrolling interest holders in MCRe.

Previous wording

Revenues attributable to investments in 2025 included $31.3 million of income related to our investment in Velocity Holdco, LLC, following the sale of its managing general agent operations in February 2025.

Current wording

Operating revenues and operating income for the quarter and six months ended June 30, 2025 were primarily attributable to income related to our minority investment in Velocity, following the sale of its managing general agent operations in February 2025 and of its insurance carrier in May 2025.

Previous wording

We measure our investment performance by analyzing net investment income, which reflects the recurring interest and dividend earnings on our investment portfolio. We also analyze net investment gains, which include unrealized gains and losses on our equity portfolio. Based on the potential for volatility in the financial markets, we understand that the level of gains or losses may vary from one period to the next, and therefore believe that our investment performance is best analyzed over longer periods of time. As of March 31, 2025, the fair value of our equity portfolio included cumulative unrealized gains of $7.8 billion.

Current wording

We measure our investment performance by analyzing net investment income, which reflects the recurring interest and dividend earnings on our investment portfolio. We also analyze net investment gains, which include unrealized gains and losses on our equity portfolio. Based on the potential for volatility in the financial markets, we understand that the level of gains or losses may vary from one period to the next, and therefore believe that our investment performance is best analyzed over longer periods of time. As of June 30, 2025, the fair value of our equity portfolio included cumulative unrealized gains of $8.3 billion.

Previous wording

The following table summarizes our consolidated investment performance, which consists predominantly of the results of our Investing segment. Net investment gains or losses in any given period are typically attributable to changes in the fair value of our equity portfolio due to market value movements. The change in net unrealized losses on available-for-sale investments in any given period is typically attributable to changes in the fair value of our fixed maturity portfolio due to changes in interest rates during the period. As of March 31, 2025, 98% of our fixed maturity portfolio was rated "AA" or better.

Current wording

The following table summarizes our consolidated investment performance, which consists predominantly of the results of our Investing segment. Net investment gains or losses in any given period are typically attributable to changes in the fair value of our equity portfolio due to market value movements. The change in net unrealized losses on available-for-sale investments in any given period is typically attributable to changes in the fair value of our fixed maturity portfolio due to changes in interest rates during the period. In 2025, the change in net unrealized losses on available-for-sale investments was also driven by foreign exchange gains on available-for-sale securities denominated in a foreign currency attributed to changes in exchange rates during 2025. As of June 30, 2025, 96% of our fixed maturity portfolio was rated "AA" or better.

Previous wording

The increase in net investment income for the three months ended March 31, 2025 was driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings of fixed maturity securities in 2025 compared to 2024. We continue to allocate cash to money market funds and fixed maturity securities to take advantage of high interest rates. See note 4(d) of the notes to consolidated financial statements for details regarding the components of net investment income.

Current wording

The increase in net investment income for the quarter and six months ended June 30, 2025 was driven by higher interest income on fixed maturity securities due to a higher yield and higher average holdings of fixed maturity securities in 2025 compared to 2024. These increases were partially offset by lower interest income on our short-term investments and cash equivalents due in part to lower short-term interest rates, as well as lower average short-term investment holdings as we used proceeds from our May 2024 senior debt offering, which had been held in short-term investments, to redeem our preferred shares in the second quarter of 2025. We continue to allocate cash to money market funds and fixed maturity securities to take advantage of high interest rates. See note 4(d) of the notes to consolidated financial statements for details regarding the components of net investment income.

Previous wording

Segment operating income and EBITDA for the three months ended March 31, 2025 were largely consistent with segment operating income and EBITDA for the same period of 2024. Segment operating income and EBITDA decreased at our transportation-related businesses and one of our consumer and building products, primarily due to the impact of lower revenues. These decreases were offset by the impact of higher revenues and operating margins at one of our construction services businesses and contributions from Valor and EPI.

Current wording

For the quarter and six months ended June 30, 2025, the increases in segment operating income and EBITDA were primarily due to the impact of higher revenues and improved margins at our constructions services businesses, as well as contributions from Valor and EPI. These increases were offset by lower segment operating income and EBITDA at our transportation-related businesses for the quarter and six months ended June 30, 2025, primarily due to the impact of lower revenues.

Previous wording

The increase in interest expense for the three months ended March 31, 2025 compared to the same period of 2024 was primarily attributable to the issuance of our $600 million 6.0% unsecured senior notes in May 2024.

Current wording

The increase in interest expense for the quarter and six months ended June 30, 2025 compared to the same period of 2024 was primarily attributable to the issuance of our $600 million 6.0% unsecured senior notes in May 2024.

Previous wording

Net foreign exchange gains and losses are primarily due to the remeasurement of our foreign currency denominated insurance loss reserves to the U.S. Dollar. The predominant foreign currencies within our insurance operations are the Euro and the British Pound. The U.S. Dollar weakened against the Euro and the British Pound during the first quarter of 2025, while it strengthened against these currencies during the first quarter of 2024. Our exposure to foreign currency exchange rates is largely hedged through our available-for-sale investment portfolio, where we hold securities that generally match the currencies of our loss reserves. We also purchase foreign currency forward contracts to further manage unmatched foreign currency exposures. Pre-tax net foreign exchange gains and losses attributed to changes in exchange rates on available-for-sale securities supporting our insurance reserves, which are included in the changes in net unrealized losses on available-for-sale investments in other comprehensive income (loss), were gains of $64.4 million for the three months ended March 31, 2025 compared to losses of $42.4 million for the same period of 2024.

Current wording

Net foreign exchange gains and losses are primarily due to the remeasurement of our foreign currency denominated insurance loss reserves to the U.S. Dollar. The predominant foreign currencies within our insurance operations are the Euro and the British Pound. The U.S. Dollar weakened against the Euro and the British Pound during the first half of 2025, while it strengthened against these currencies during the first half of 2024. Our exposure to foreign currency exchange rates is largely hedged through our available-for-sale investment portfolio, where we hold securities that generally match the currencies of our loss reserves. We also purchase foreign currency forward contracts to further manage unmatched foreign currency exposures. Pre-tax net foreign exchange gains and losses attributed to changes in exchange rates on available-for-sale securities supporting our insurance reserves, which are included in the changes in net unrealized losses on available-for-sale investments in other comprehensive income (loss), were gains of $158.4 million and $222.7 million for the quarter and six months ended June 30, 2025, respectively, compared to losses of $3.1 million and $45.5 million for the same periods of 2024.

Previous wording

Investments, cash and cash equivalents and restricted cash and cash equivalents (invested assets) were $34.7 billion and $34.2 billion at March 31, 2025 and December 31, 2024, respectively. The following table presents the composition of our invested assets.

Current wording

Investments, cash and cash equivalents and restricted cash and cash equivalents (invested assets) were $35.3 billion and $34.2 billion at June 30, 2025 and December 31, 2024, respectively. The following table presents the composition of our invested assets.

Previous wording

Our holding company had $4.0 billion and $4.3 billion of invested assets at March 31, 2025 and December 31, 2024, respectively. The decrease was due in part to cash used to repurchase shares of our common stock. The following table presents the composition of our holding company's invested assets.

Current wording

Our holding company had $3.6 billion and $4.3 billion of invested assets at June 30, 2025 and December 31, 2024, respectively. The decrease was attributable to cash used to redeem our preferred stock and repurchase shares of our common stock in 2025. The following table presents the composition of our holding company's invested assets.

Previous wording

We have a share repurchase program, authorized by our Board of Directors, that provides for the repurchase of up to $2 billion of common stock. As of March 31, 2025, $1.7 billion remained available for repurchases under the program. This share repurchase program has no expiration date but may be terminated by the Board of Directors at any time.

Current wording

We have a share repurchase program, authorized by our Board of Directors, that provides for the repurchase of up to $2 billion of common stock. As of June 30, 2025, $1.6 billion remained available for repurchases under the program. This share repurchase program has no expiration date but may be terminated by the Board of Directors at any time.

Previous wording

We may from time to time seek to prepay, retire or repurchase our outstanding senior notes or preferred shares, through open market purchases, privately negotiated transactions or otherwise. Those prepayments, retirements or repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.

Current wording

We may from time to time seek to prepay, retire or repurchase our outstanding senior notes, through open market purchases, privately negotiated transactions or otherwise. Those prepayments, retirements or repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.

Previous wording

Net cash provided by operating activities was $376.2 million for the three months ended March 31, 2025 compared to $630.7 million for the same period of 2024. The decrease in net cash flows from operating activities for the three months ended March 31, 2025 compared to the same period in 2024 was due to lower net premium collections and higher gross claims payments in our insurance operations.

Current wording

Net cash provided by operating activities was $880.6 million for the six months ended June 30, 2025 compared to $1.2 billion for the same period of 2024. The decrease in net cash flows from operating activities for the six months ended June 30, 2025 compared to the same period in 2024 was due to higher gross claims payments and higher personnel costs in our insurance operations.

Previous wording

Net cash provided by investing activities was $192.8 million for the three months ended March 31, 2025 compared to net cash used by investing activities of $564.2 million for the same period of 2024. During the three months ended March 31, 2025, net cash provided by investing activities included net sales of short term investments of $447.4 million and net purchases of fixed maturity securities and equity securities of $242.2 million and $56.7 million, respectively. During the three months ended March 31, 2024, net cash used by investing activities included net purchases of fixed maturity securities, equity securities and short-term investments of $333.2 million, $86.2 million and $21.4 million, respectively. Cash flows from investing activities are affected by various factors such as anticipated payment of claims, financing activity, acquisition opportunities and individual buy and sell decisions made in the normal course of our investment portfolio management.

Current wording

Net cash provided by investing activities was $83.4 million for the six months ended June 30, 2025 compared to net cash used by investing activities of $1.6 billion for the same period of 2024. During the six months ended June 30, 2025, net cash provided by investing activities included net sales of short-term investments of $729.0 million and net purchases of fixed maturity securities and equity securities of $485.6 million and $96.5 million, respectively. The net sales of short-term investments in 2025 were largely driven by the conversion of short-term investments to cash in order to redeem our preferred stock. During the six months ended June 30, 2024, net cash used by investing activities included net purchases of fixed maturity securities, equity securities and short-term investments of $785.1 million, $223.3 million and $161.3 million, respectively. Net cash used by investing activities in 2024 also included $154.4 million of net cash used for the acquisition of Valor. Cash flows from investing activities are affected by various factors such as anticipated payment of claims, financing activity, acquisition opportunities and individual buy and sell decisions made in the normal course of our investment portfolio management.