10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark one)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2022

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

For the Transition Period from                      to                     .

Commission File Number 1-15202

W. R. BERKLEY CORPORATION

(Exact name of registrant as specified in its charter)

Delaware			22-1867895
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
475 Steamboat Road	Greenwich	Connecticut	06830
(Address of principal executive offices)			(Zip Code)

(203) 629-3000

(Registrant’s telephone number, including area code)

	None
Former name, former address and former fiscal year, if changed since last report.

Securities registered pursuant to Section 12(b) of the Act:

Title	Trading Symbol	Name
Common Stock, par value $.20 per share	WRB	New York Stock Exchange
5.700% Subordinated Debentures due 2058	WRB-PE	New York Stock Exchange
5.100% Subordinated Debentures due 2059	WRB-PF	New York Stock Exchange
4.250% Subordinated Debentures due 2060	WRB-PG	New York Stock Exchange
4.125% Subordinated Debentures due 2061	WRB-PH	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒     No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒     No ☐

1

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐    No ☒

Number of shares of common stock, $.20 par value, outstanding as of April 27, 2022: 265,193,412

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TABLE OF CONTENTS

Part I — FINANCIAL INFORMATION
	Item 1. Financial Statements
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
	Item 3. Quantitative and Qualitative Disclosure About Market Risk
	Item 4. Controls and Procedures
PART II — OTHER INFORMATION
	Item 1. Legal Proceedings
	Item 1A. Risk Factors
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
	Item 6. Exhibits
SIGNATURES
EX-10.1
EX-31.1
EX-31.2
EX-32.1
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

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Part I — FINANCIAL INFORMATION

Item 1.     Financial Statements

W. R. BERKLEY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

	March 31, 2022		December 31, 2021
	(Unaudited)		(Audited)
Assets
Investments:
Fixed maturity securities (amortized cost of $16,838,703 and $16,471,304; allowance for expected credit losses of $26,531 and $22,625 at March 31, 2022 and December 31, 2021, respectively)	$	16,426,196	$	16,602,673
Real estate	1,276,157		1,852,508
Investment funds	1,545,648		1,480,612
Arbitrage trading account	1,188,910		1,179,606
Equity securities	1,126,491		941,243
Loans receivable (net of allowance for expected credit losses of $1,429 and $1,718 at March 31, 2022 and December 31, 2021, respectively)	115,097		115,172
Total investments	21,678,499		22,171,814
Cash and cash equivalents	2,114,841		1,568,843
Premiums and fees receivable (net of allowance for expected credit losses of $28,236 and $25,218 at March 31, 2022 and December 31, 2021, respectively)	2,599,357		2,522,972
Due from reinsurers (net of allowance for expected credit losses of $7,655 and $7,713 at March 31, 2022 and December 31, 2021, respectively)	2,929,161		2,923,026
Deferred policy acquisition costs	716,645		676,145
Prepaid reinsurance premiums	680,703		676,915
Property, furniture and equipment	417,888		419,883
Goodwill	169,652		169,652
Accrued investment income	129,194		122,938
Current and deferred federal and foreign income taxes	43,527		42,457
Other assets	771,487		753,231
Total assets	$	32,250,954	$	32,047,876
Liabilities and Equity
Liabilities:
Reserves for losses and loss expenses	$	15,722,889	$	15,390,888
Unearned premiums	5,026,905		4,847,160
Due to reinsurers	524,562		514,980
Trading account securities sold but not yet purchased	241		1,169
Trading account payable to brokers and clearing organizations	56,652		53,636
Other liabilities	1,189,919		1,305,245
Senior notes and other debt	1,834,155		2,259,416
Subordinated debentures	1,007,832		1,007,652
Total liabilities	25,363,155		25,380,146
Equity:
Preferred stock, par value $0.10 per share:
Authorized 5,000,000 shares; issued and outstanding - none	—		—
Common stock, par value $0.20 per share:
Authorized 750,000,000 shares, issued and outstanding, net of treasury shares, 265,186,251 and 265,170,882 shares, respectively	105,803		105,803
Additional paid-in capital	992,012		981,104
Retained earnings	9,582,790		9,015,135
Accumulated other comprehensive loss	(649,229)		(281,955)
Treasury stock, at cost, 263,828,377 and 263,843,868 shares, respectively	(3,166,873)		(3,167,076)
Total stockholders’ equity	6,864,503		6,653,011
Noncontrolling interests	23,296		14,719
Total equity	6,887,799		6,667,730
Total liabilities and equity	$	32,250,954	$	32,047,876

See accompanying notes to interim consolidated financial statements.

1

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(In thousands, except per share data)

	For the Three Months Ended March 31,
	2022		2021
REVENUES:
Net premiums written	$	2,413,254	$	2,050,038
Change in net unearned premiums	(164,167)		(200,082)
Net premiums earned	2,249,087		1,849,956
Net investment income	173,512		158,577
Net investment gains:
Net realized and unrealized gains on investments	369,882		51,759
Change in allowance for expected credit losses on investments	(3,617)		(16,920)
Net investment gains	366,265		34,839
Revenues from non-insurance businesses	97,776		87,430
Insurance service fees	27,951		25,808
Other income	818		259
Total revenues	2,915,409		2,156,869
OPERATING COSTS AND EXPENSES:
Losses and loss expenses	1,339,252		1,121,592
Other operating costs and expenses	713,899		616,268
Expenses from non-insurance businesses	94,855		86,290
Interest expense	34,970		36,651
Total operating costs and expenses	2,182,976		1,860,801
Income before income taxes	732,433		296,068
Income tax expense	(139,403)		(64,352)
Net income before noncontrolling interests	593,030		231,716
Noncontrolling interests	(2,392)		(2,191)
Net income to common stockholders	$	590,638	$	229,525
NET INCOME PER SHARE:
Basic	$	2.13	$	0.83
Diluted	$	2.12	$	0.82

See accompanying notes to interim consolidated financial statements.

2

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(In thousands)

	For the Three Months Ended March 31,
	2022		2021
Net income before noncontrolling interests	$	593,030	$	231,716
Other comprehensive (loss) income:
Change in unrealized currency translation adjustments	56,272		4,050
Change in unrealized investment losses, net of taxes	(423,545)		(90,130)
Other comprehensive loss	(367,273)		(86,080)
Comprehensive income	225,757		145,636
Noncontrolling interests	(2,391)		(2,191)
Comprehensive income to common stockholders	$	223,366	$	143,445

See accompanying notes to interim consolidated financial statements.

3

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(In thousands, except per share data)

	For the Three Months Ended March 31,
	2022		2021
COMMON STOCK:
Beginning and end of period	$	105,803	$	105,803
ADDITIONAL PAID-IN CAPITAL:
Beginning of period	$	981,104	$	977,215
Restricted stock units issued	(530)		(525)
Restricted stock units expensed	11,438		11,598
End of period	$	992,012	$	988,288
RETAINED EARNINGS:
Beginning of period	$	9,015,135	$	8,348,381
Net income to common stockholders	590,638		229,525
Dividends ($0.09 and $0.08, per share, respectively)	(22,983)		(21,285)
End of period	$	9,582,790	$	8,556,621
ACCUMULATED OTHER COMPREHENSIVE LOSS:
Unrealized investment (loss) gains:
Beginning of period	$	90,900	$	289,714
Change in unrealized losses on securities without an allowance for expected credit losses	(423,839)		(100,485)
Change in unrealized gains on securities with an allowance for expected credit losses	293		10,355
End of period	(332,646)		199,584
Currency translation adjustments:
Beginning of period	(372,855)		(351,886)
Net change in period	56,272		4,050
End of period	(316,583)		(347,836)
Total accumulated other comprehensive loss	$	(649,229)	$	(148,252)
TREASURY STOCK:
Beginning of period	$	(3,167,076)	$	(3,058,425)
Stock exercised/vested	203		248
Stock repurchased	—		(29,683)
End of period	$	(3,166,873)	$	(3,087,860)
NONCONTROLLING INTERESTS:
Beginning of period	$	14,719	$	14,995
Contributions (distributions)	6,186		(1,502)
Net income	2,392		2,191
Other comprehensive loss, net of tax	(1)		—
End of period	$	23,296	$	15,684

See accompanying notes to interim consolidated financial statements.

4

W. R. BERKLEY CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In thousands)

	For the Three Months Ended March 31,
	2022		2021
CASH FROM OPERATING ACTIVITIES:
Net income to common stockholders	$	590,638	$	229,525
Adjustments to reconcile net income to net cash from operating activities:
Net investment gains	(366,265)		(34,839)
Depreciation and amortization	24,631		33,543
Noncontrolling interests	2,392		2,191
Investment funds	(52,012)		(38,935)
Stock incentive plans	11,438		11,817
Change in:
Arbitrage trading account	(7,215)		(16,108)
Premiums and fees receivable	(69,704)		(96,290)
Reinsurance accounts	(2,643)		(105,589)
Deferred policy acquisition costs	(39,220)		(38,577)
Income taxes	123,763		47,372
Reserves for losses and loss expenses	316,065		303,305
Unearned premiums	167,522		219,920
Other	(221,708)		(206,345)
Net cash from operating activities	477,682		310,990
CASH FROM (USED IN) INVESTING ACTIVITIES:
Proceeds from sale of fixed maturity securities	408,221		1,115,114
Proceeds from sale of equity securities	9,227		57,457
(Contributions) distributions from investment funds	(13,423)		36,236
Proceeds from maturities and prepayments of fixed maturity securities	1,440,457		1,623,357
Purchase of fixed maturity securities	(2,200,214)		(4,118,161)
Purchase of equity securities	(100,356)		(69,181)
Real estate sold	28,141		9,787
Change in loans receivable	332		9,256
Net purchases of property, furniture and equipment	(9,114)		(10,872)
Change in balances due to security brokers	98,058		151,776
Cash received in connection with business disposition	906,789		—
Payment for business purchased net of cash acquired	(49,572)		—
Other	17		—
Net cash from (used in) investing activities	518,563		(1,195,231)
CASH (USED IN) FROM FINANCING ACTIVITIES:
Repayment of senior notes and other debt	(426,503)		(110,000)
Net payments for stock options exercised	(327)		(525)
Net proceeds from issuance of debt	1,186		691,213
Cash dividends to common stockholders	(22,983)		(21,285)
Purchase of common treasury shares	—		(29,683)
Other, net	(2,703)		(1,503)
Net cash (used in) from financing activities	(451,330)		528,217
Net impact on cash due to change in foreign exchange rates	1,083		(1,431)
Net change in cash and cash equivalents	545,998		(357,455)
Cash and cash equivalents at beginning of period	1,568,843		2,372,366
Cash and cash equivalents at end of period	$	2,114,841	$	2,014,911

See accompanying notes to interim consolidated financial statements.

5

W. R. Berkley Corporation and Subsidiaries

NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(1) General

    The unaudited consolidated financial statements, which include the accounts of W. R. Berkley Corporation and its subsidiaries (the “Company”), have been prepared on the basis of U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all the information and notes required by GAAP for annual financial statements. The unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring items, which are necessary to present fairly the Company’s financial position and results of operations on a basis consistent with the prior audited consolidated financial statements. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the revenues and expenses reflected during the reporting period. For further information related to areas of judgment and estimates and other information necessary to understand the Company’s financial position and results of operations, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Reclassifications have been made in the 2021 financial statements as originally reported to conform to the presentation of the 2022 financial statements. Shares outstanding and per share amounts have been adjusted to reflect the 3-for-2 common stock split effected on March 23, 2022.

The income tax provision has been computed based on the Company’s estimated annual effective tax rate. The effective income tax rate differs from the federal income tax rate of 21% primarily due to a net reduction to the Company’s valuation allowance against foreign tax credits and foreign net operating losses, which was partially offset by state income taxes.

(2) Per Share Data

    The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period (including 11,592,699 and 11,651,811 common shares held in a grantor trust as of March 31, 2022 and 2021, respectively). The common shares held in the grantor trust are for delivery upon settlement of vested but mandatorily deferred restricted stock units ("RSUs"). Shares held by the grantor trust do not affect diluted shares outstanding since the shares deliverable under vested RSUs were already included in diluted shares outstanding. Diluted EPS is based upon the weighted average number of basic and common equivalent shares outstanding during the period and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect.

    The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows:

	For the Three Months Ended March 31,
(In thousands)	2022	2021
Basic	276,772	277,793
Diluted	279,157	280,245

(3) Recent Accounting Pronouncements and Accounting Policies

Recently adopted accounting pronouncements:

    All accounting and reporting standards that became effective in 2022 were either not applicable to the Company or their adoption did not have a material impact on the Company.

Accounting and reporting standards that are not yet effective:

    All recently issued but not yet effective accounting and reporting standards are either not applicable to the Company or are not expected to have a material impact on the Company.

6

(4) Acquisitions

In March 2022, the Company acquired an 80.0% ownership interest for $51.1 million in a company engaged in residential and commercial textiles. The fair value of the assets acquired and liabilities assumed have been estimated based on a preliminary valuation. The fair values of the assets and liabilities will be adjusted, as needed, following completion of the final valuation.

    The following table summarizes the initial estimated fair value of net assets acquired and liabilities assumed for the business combination completed in 2022:

(In thousands)	2022
Cash and cash equivalents	$	1,564
Real estate, furniture and equipment	2,527
Intangible assets	48,787
Other assets	11,275
Total assets acquired	64,153
Other liabilities assumed	(5,417)
Noncontrolling interest	(7,600)
Net assets acquired	$	51,136

7

(5) Consolidated Statements of Comprehensive Income

    The following table presents the components of the changes in accumulated other comprehensive (loss) income ("AOCI"):

(In thousands)	Unrealized Investment Gains (Losses)			Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
As of and for the three months ended March 31, 2022
Changes in AOCI
Beginning of period	$	90,900		$	(372,855)	$	(281,955)
Other comprehensive (loss) income before reclassifications	(433,136)			56,272		(376,864)
Amounts reclassified from AOCI	9,591			—		9,591
Other comprehensive (loss) income	(423,545)			56,272		(367,273)
Unrealized investment gain related to noncontrolling interest	(1)			—		(1)
End of period	$	(332,646)		$	(316,583)	$	(649,229)
Amounts reclassified from AOCI
Pre-tax	$	12,141	(1)	$	—	$	12,141
Tax effect	(2,550)		(2)	—		(2,550)
After-tax amounts reclassified	$	9,591		$	—	$	9,591
Other comprehensive (loss) income
Pre-tax	$	(539,449)		$	56,272	$	(483,177)
Tax effect	115,904			—		115,904
Other comprehensive (loss) income	$	(423,545)		$	56,272	$	(367,273)

As of and for the three months ended March 31, 2021
Changes in AOCI
Beginning of period	$	289,714		$	(351,886)	$	(62,172)
Other comprehensive (loss) income before reclassifications	(98,991)			4,050		(94,941)
Amounts reclassified from AOCI	8,861			—		8,861
Other comprehensive (loss) income	(90,130)			4,050		(86,080)
Unrealized investment gain related to noncontrolling interest	—			—		—
End of period	$	199,584		$	(347,836)	$	(148,252)
Amounts reclassified from AOCI
Pre-tax	$	11,216	(1)	$	—	$	11,216
Tax effect	(2,355)		(2)	—		(2,355)
After-tax amounts reclassified	$	8,861		$	—	$	8,861
Other comprehensive (loss) income
Pre-tax	$	(113,735)		$	4,050	$	(109,685)
Tax effect	23,605			—		23,605
Other comprehensive (loss) income	$	(90,130)		$	4,050	$	(86,080)

____________

(1) Net investment gains (losses) in the consolidated statements of income.

(2) Income tax expense in the consolidated statements of income.

(6) Statements of Cash Flows

    Interest payments were $52,899,000 and $45,393,000 for the three months ended March 31, 2022 and 2021, respectively. No income taxes were paid during such periods.

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(7) Investments in Fixed Maturity Securities

    At March 31, 2022 and December 31, 2021, investments in fixed maturity securities were as follows:

(In thousands)	Amortized Cost		Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
					Gains		Losses
March 31, 2022
Held to maturity:
State and municipal	$	70,165	$	(378)	$	7,094	$	—	$	76,881	$	69,787
Residential mortgage-backed	4,455		—		324		—		4,779		4,455
Total held to maturity	74,620		(378)		7,418		—		81,660		74,242
Available for sale:
U.S. government and government agency	837,167		—		2,397		(20,716)		818,848		818,848
State and municipal:
Special revenue	1,948,586		—		12,944		(44,803)		1,916,727		1,916,727
State general obligation	378,408		—		7,043		(6,574)		378,877		378,877
Pre-refunded	165,882		—		6,216		—		172,098		172,098
Corporate backed	175,070		—		1,407		(4,472)		172,005		172,005
Local general obligation	410,058		—		11,184		(5,075)		416,167		416,167
Total state and municipal	3,078,004		—		38,794		(60,924)		3,055,874		3,055,874
Mortgage-backed:
Residential	1,179,468		—		2,417		(60,650)		1,121,235		1,121,235
Commercial	266,921		—		339		(3,759)		263,501		263,501
Total mortgage-backed	1,446,389		—		2,756		(64,409)		1,384,736		1,384,736
Asset-backed	4,319,535		—		1,459		(63,573)		4,257,421		4,257,421
Corporate:
Industrial	3,373,710				12,708		(115,614)		3,270,804		3,270,804
Financial	1,747,275		—		4,612		(45,155)		1,706,732		1,706,732
Utilities	422,354		—		1,806		(14,434)		409,726		409,726
Other	206,526		—		47		(5,328)		201,245		201,245
Total corporate	5,749,865		—		19,173		(180,531)		5,588,507		5,588,507
Foreign government	1,333,123		(26,153)		3,411		(63,813)		1,246,568		1,246,568
Total available for sale	16,764,083		(26,153)		67,990		(453,966)		16,351,954		16,351,954
Total investments in fixed maturity securities	$	16,838,703	$	(26,531)	$	75,408	$	(453,966)	$	16,433,614	$	16,426,196

____________

(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors.

9

(In thousands)	Amortized Cost		Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
					Gains		Losses
December 31, 2021
Held to maturity:
State and municipal	$	69,539	$	(387)	$	10,813	$	—	$	79,965	$	69,152
Residential mortgage-backed	4,829		—		632		—		5,461		4,829
Total held to maturity	74,368		(387)		11,445		—		85,426		73,981
Available for sale:
U.S. government and government agency	851,128		—		8,509		(4,294)		855,343		855,343
State and municipal:
Special revenue	2,016,382		—		62,961		(5,706)		2,073,637		2,073,637
State general obligation	388,110		—		23,152		(1,015)		410,247		410,247
Pre-refunded	202,633		—		14,891		(574)		216,950		216,950
Corporate backed	166,943		—		7,191		(1,532)		172,602		172,602
Local general obligation	401,974		—		29,455		(732)		430,697		430,697
Total state and municipal	3,176,042		—		137,650		(9,559)		3,304,133		3,304,133
Mortgage-backed:
Residential	940,744		—		9,896		(11,321)		939,319		939,319
Commercial	125,709		—		3,388		(341)		128,756		128,756
Total mortgage-backed securities	1,066,453		—		13,284		(11,662)		1,068,075		1,068,075
Asset-backed	4,504,950		—		4,409		(18,794)		4,490,565		4,490,565
Corporate:
Industrial	3,231,520		(16)		62,751		(21,092)		3,273,163		3,273,163
Financial	1,739,282		—		30,709		(6,591)		1,763,400		1,763,400
Utilities	396,242		—		13,262		(3,202)		406,302		406,302
Other	154,210		—		125		(1,525)		152,810		152,810
Total corporate	5,521,254		(16)		106,847		(32,410)		5,595,675		5,595,675
Foreign government	1,277,109		(22,222)		7,508		(47,494)		1,214,901		1,214,901
Total available for sale	16,396,936		(22,238)		278,207		(124,213)		16,528,692		16,528,692
Total investments in fixed maturity securities	$	16,471,304	$	(22,625)	$	289,652	$	(124,213)	$	16,614,118	$	16,602,673

____________

(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors.

The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	387	$	798
Provision for expected credit losses	(9)		(68)
Allowance for expected credit losses, end of period	$	378	$	730

10

The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the three months ended March 31, 2022 and 2021:

	2022						2021
(In thousands)	Foreign Government		Corporate		Total		Foreign Government		Corporate		Total
Allowance for expected credit losses, beginning of period	$	22,222	$	16	$	22,238	$	1,264	$	518	$	1,782
Expected credit losses on securities for which credit losses were not previously recorded	484		—		484		18,990		16		19,006
Expected credit losses (gains) on securities for which credit losses were previously recorded	3,447		(16)		3,431		(261)		(513)		(774)
Reduction due to disposals	—		—		—		—		(5)		(5)
Allowance for expected credit losses, end of period	$	26,153	$	—	$	26,153	$	19,993	$	16	$	20,009

During the three months ended March 31, 2022, the Company increased the allowance for expected credit losses for available for sale securities utilizing its credit loss assessment process and inputs used in its credit loss model, primarily due

to foreign government securities. During the three months ended March 31, 2021, the Company increased the allowance for expected credit losses for available for sale securities primarily due to foreign government securities that had no reserve in prior periods.

The amortized cost and fair value of fixed maturity securities at March 31, 2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations.  

(In thousands)	Amortized Cost (1)		Fair Value
Due in one year or less	$	1,472,865	$	1,461,188
Due after one year through five years	7,903,303		7,756,952
Due after five years through ten years	4,029,040		3,898,727
Due after ten years	1,982,273		1,927,232
Mortgage-backed securities	1,450,844		1,389,515
Total	$	16,838,325	$	16,433,614

________________

(1) Amortized cost is reduced by the allowance for expected credit losses of $378 thousand related to held to maturity securities.    

At March 31, 2022 and December 31, 2021, there were no investments that exceeded 10% of common stockholders' equity, other than investments in United States government and government agency securities.

11

(8) Investments in Equity Securities

    At March 31, 2022 and December 31, 2021, investments in equity securities were as follows:

(In thousands)	Cost		Gross Unrealized				Fair Value		Carrying Value
			Gains		Losses
March 31, 2022
Common stocks	$	699,566	$	191,842	$	(8,091)	$	883,317	$	883,317
Preferred stocks	262,513		2,917		(22,256)		243,174		243,174
Total	$	962,079	$	194,759	$	(30,347)	$	1,126,491	$	1,126,491
December 31, 2021
Common stocks	$	619,896	$	92,401	$	(16,894)	$	695,403	$	695,403
Preferred stocks	250,149		7,874		(12,183)		245,840		245,840
Total	$	870,045	$	100,275	$	(29,077)	$	941,243	$	941,243

(9) Arbitrage Trading Account

    At March 31, 2022 and December 31, 2021, the fair and carrying values of the arbitrage trading account were $1,189 million and $1,180 million, respectively. The primary focus of the trading account is merger arbitrage. Merger arbitrage is the business of investing in the securities of publicly held companies which are the targets in announced tender offers and mergers. Arbitrage investing differs from other types of investing in its focus on transactions and events believed likely to bring about a change in value over a relatively short time period (usually four months or less).

    The Company uses put options and call options in order to mitigate the impact of potential changes in market conditions on the merger arbitrage trading account. These options are reported at fair value. As of March 31, 2022, the fair value of short option contracts outstanding was $242 thousand (notional amount of $29.2 million). Other than with respect to the use of these trading account securities, the Company does not make use of derivatives.

(10) Net Investment Income

    Net investment income consisted of the following: 

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Investment income earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	101,284	$	94,677
Investment funds	52,012		38,935
Arbitrage trading account	9,187		19,074
Equity securities	10,856		6,180
Real estate	2,146		1,161
Gross investment income	175,485		160,027
Investment expense	(1,973)		(1,450)
Net investment income	$	173,512	$	158,577

12

(11) Investment Funds

    The Company evaluates whether it is an investor in a variable interest entity ("VIE"). Such entities do not have sufficient equity at risk to finance their activities without additional subordinated financial support, or the equity investors, as a group, do not have the characteristics of a controlling financial interest (primary beneficiary). The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose, and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE and on an ongoing basis. The Company is not the primary beneficiary in any of its investment funds, and accordingly, carries its interests in investment funds under the equity method of accounting.    

    The Company’s maximum exposure to loss with respect to these investments is limited to the carrying amount reported on the Company’s consolidated balance sheet and its unfunded commitments, which were $615 million as of March 31, 2022.

    Investment funds consisted of the following:

	Carrying Value as of				Income (Loss) from Investment Funds
	March 31,		December 31,		For the Three Months Ended March 31,
(In thousands)	2022		2021		2022		2021
Financial services	$	454,701	$	431,818	$	25,932	$	17,142
Transportation	341,022		336,688		11,179		6,228
Real Estate	283,897		273,690		16,364		4,434
Energy	136,401		150,224		(892)		3,320
Other funds	329,627		288,192		(569)		7,811
Total	$	1,545,648	$	1,480,612	$	52,014	$	38,935

    The Company's share of the earnings or losses from investment funds is generally reported on a one-quarter lag in order to facilitate the timely completion of the Company's consolidated financial statements.

Financial services investment funds include the Company’s minority investment in Lifson Re, a Bermuda reinsurance company. Effective January 1, 2021, Lifson Re participates on a fully collateralized basis in a majority of the Company’s reinsurance placements for a 22.5% share of placed amounts. This pertains to all traditional reinsurance/retrocessional placements for both property and casualty business where there is more than one open market reinsurer participating. For the three months ended March 31, 2022 and 2021, the Company has ceded approximately $89 million and $53 million, respectively, of written premiums to Lifson Re.

Other funds include deferred compensation trust assets of $32 million and $34 million as of March 31, 2022 and December 31, 2021, respectively. These assets support other liabilities reflected in the balance sheet of an equal amount for employees who have elected to defer a portion of their compensation. The change in the net asset value of the trust is recorded in other funds within net investment income with an offsetting equal amount within corporate expenses.

(12) Real Estate

    Investment in real estate represents directly owned property held for investment, as follows:

	Carrying Value
	March 31,		December 31,
(In thousands)	2022		2021
Properties in operation	$	1,052,198	$	1,626,826
Properties under development	223,959		225,682
Total	$	1,276,157	$	1,852,508

    As of March 31, 2022, properties in operation included a long-term ground lease in Washington, D.C., an office complex in New York City and the completed portion of a mixed-use project in Washington D.C. Properties in operation are net of accumulated depreciation and amortization of $32,031,000 and $57,391,000 as of March 31, 2022 and December 31, 2021, respectively. Related depreciation expense was $4,788,000 and $4,890,000 for the three months ended March 31, 2022 and 2021, respectively. Future minimum rental income expected on operating leases relating to properties in operation is

13

$24,004,686 in 2022, $30,750,724 in 2023, $30,466,934 in 2024, $27,802,134 in 2025, $25,807,966 in 2026, $24,984,457 in 2027 and $476,939,991 thereafter.

During the first quarter of 2022, the Company sold a real estate investment in London.

    A mixed-use project in Washington, D.C. has been under development in 2022 and 2021, with the completed portion reported in properties in operation as of March 31, 2022.

(13) Loans Receivable

At March 31, 2022 and December 31, 2021, loans receivable were as follows:

(In thousands)	March 31, 2022		December 31, 2021
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	89,213	$	89,431
Commercial loans	25,884		25,741
Total	$	115,097	$	115,172
Fair value:
Real estate loans	$	89,672	$	90,793
Commercial loans	25,884		25,741
Total	$	115,556	$	116,534

The real estate loans are secured by commercial and residential real estate primarily located in New York. These loans generally earn interest at fixed or stepped interest rates and have maturities through 2026. The commercial loans are with small business owners who have secured the related financing with the assets of the business. Commercial loans primarily earn interest on a fixed basis and have varying maturities generally not exceeding 10 years.

Loans receivable in non-accrual status were none and $0.2 million as of March 31, 2022 and December 31, 2021, respectively.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the three months ended March 31, 2022 and 2021:

	2022						2021
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Allowance for expected credit losses, beginning of period	$	1,362	$	356	$	1,718	$	1,683	$	3,754	$	5,437
Provision for expected credit losses	(67)		(222)		(289)		(75)		(1,164)		(1,239)
Allowance for expected credit losses, end of period	$	1,295	$	134	$	1,429	$	1,608	$	2,590	$	4,198

During the three months ended March 31, 2022, the Company reduced the allowance primarily due to the decrease in the duration of the loan portfolio.

The Company monitors the performance of its loans receivable and assesses the ability of the borrower to pay principal and interest based upon loan structure, underlying property values, cash flow and related financial and operating performance of the property and market conditions.

    In evaluating the real estate loans, the Company considers their credit quality indicators, including loan to value ratios, which compare the outstanding loan amount to the estimated value of the property, the borrower’s financial condition and performance with respect to loan terms, the position in the capital structure, the overall leverage in the capital structure and other market conditions.

14

(14) Net Investment Gains (Losses)

     Net investment gains (losses) were as follows:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Net investment gains (losses):
Fixed maturity securities:
Gains	$	1,705	$	8,240
Losses	(2,984)		(2,071)
Equity securities (1):
Net realized gains on investment sales	905		8,572
Change in unrealized gains (losses)	93,213		(24,335)
Investment funds	(2,162)		47,671
Real estate (2)	286,192		12,909
Loans receivable	(32)		—
Other	(6,955)		773
Net realized and unrealized gains on investments in earnings before allowance for expected credit losses	369,882		51,759
Change in allowance for expected credit losses on investments:
Fixed maturity securities	(3,906)		(18,159)
Loans receivable	289		1,239
Change in allowance for expected credit losses on investments	(3,617)		(16,920)
Net investment gains	366,265		34,839
Income tax expense	(78,442)		(5,887)
After-tax net investment gains	$	287,823	$	28,952

Change in unrealized investment losses on available for sale securities:
Fixed maturity securities without allowance for expected credit losses	$	(540,263)	$	(122,568)
Fixed maturity securities with allowance for expected credit losses	293		10,355
Investment funds	469		(1,020)
Other	52		(502)
Total change in unrealized investment losses	(539,449)		(113,735)
Income tax benefit	115,904		23,605
Noncontrolling interests	(1)		—
After-tax change in unrealized investment losses of available for sale securities	$	(423,546)	$	(90,130)

______________________

(1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized (losses) gains consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.

(2) During March 2022, the Company realized a gain on the sale of a real estate investment in London, U.K. of $251 million, net of transaction expenses and the foreign currency impact, including the reversal of the currency translation adjustment.

15

(15) Fixed Maturity Securities in an Unrealized Loss Position

    The following tables summarize all fixed maturity securities in an unrealized loss position at March 31, 2022 and December 31, 2021 by the length of time those securities have been continuously in an unrealized loss position:

	Less Than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
March 31, 2022
U.S. government and government agency	$	547,027	$	18,521	$	36,307	$	2,195	$	583,334	$	20,716
State and municipal	1,360,055		51,579		95,853		9,345		1,455,908		60,924
Mortgage-backed	1,069,979		49,408		140,480		15,001		1,210,459		64,409
Asset-backed	3,898,607		61,254		186,663		2,319		4,085,270		63,573
Corporate	3,805,020		148,708		381,306		31,823		4,186,326		180,531
Foreign government	809,004		29,721		211,576		34,092		1,020,580		63,813
Fixed maturity securities	$	11,489,692	$	359,191	$	1,052,185	$	94,775	$	12,541,877	$	453,966
December 31, 2021
U.S. government and government agency	$	487,712	$	4,026	$	17,021	$	268	$	504,733	$	4,294
State and municipal	502,333		7,403		29,547		2,156		531,880		9,559
Mortgage-backed	558,751		6,900		106,130		4,762		664,881		11,662
Asset-backed	3,832,944		18,503		75,385		291		3,908,329		18,794
Corporate	2,582,860		29,322		51,095		3,088		2,633,955		32,410
Foreign government	758,975		15,793		82,057		31,701		841,032		47,494
Fixed maturity securities	$	8,723,575	$	81,947	$	361,235	$	42,266	$	9,084,810	$	124,213

    Substantially all of the securities in an unrealized loss position are rated investment grade, except for the securities in the foreign government classification. A significant amount of the unrealized loss on foreign government securities is the result of changes in currency exchange rates. 

    A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at March 31, 2022 is presented in the table below:

($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Foreign government	37	$	132,306	$	30,753
Corporate	12	30,071		3,158
State and municipal	1	13,583		1,422
Mortgage-backed	7	1,785		48
Asset-backed	1	37		5
Total	58	$	177,782	$	35,386

    For fixed maturity securities that management does not intend to sell or to be required to sell, the portion of the decline in value that is considered to be due to credit factors is recognized in earnings, and the portion of the decline in value that is considered to be due to non-credit factors is recognized in other comprehensive income.

     The Company has evaluated its fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due.

16

(16) Fair Value Measurements

    The Company’s fixed maturity available for sale securities, equity securities and its arbitrage trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable.

Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available.

    Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation.

    If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information.

    For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate.

17

    The following tables present the assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 by level:

(In thousands)	Total		Level 1		Level 2		Level 3
March 31, 2022
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	818,848	$	—	$	818,848	$	—
State and municipal	3,055,874		—		3,055,874		—
Mortgage-backed	1,384,736		—		1,384,736		—
Asset-backed	4,257,421		—		4,257,421		—
Corporate	5,588,507		—		5,588,507		—
Foreign government	1,246,568		—		1,246,568		—
Total fixed maturity securities available for sale	16,351,954		—		16,351,954		—
Equity securities:
Common stocks	883,317		877,387		1,230		4,700
Preferred stocks	243,174		—		231,203		11,971
Total equity securities	1,126,491		877,387		232,433		16,671
Arbitrage trading account	1,188,910		1,186,353		2,557		—
Total	$	18,667,355	$	2,063,740	$	16,586,944	$	16,671
Liabilities:
Trading account securities sold but not yet purchased	$	241	$	241	$	—	$	—
December 31, 2021
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	855,343	$	—	$	855,343	$	—
State and municipal	3,304,133		—		3,304,133		—
Mortgage-backed	1,068,075		—		1,068,075		—
Asset-backed	4,490,565		—		4,490,565		—
Corporate	5,595,675		—		5,595,675		—
Foreign government	1,214,901		—		1,214,901		—
Total fixed maturity securities available for sale	16,528,692		—		16,528,692		—
Equity securities:
Common stocks	695,403		684,470		1,639		9,294
Preferred stocks	245,840		—		234,544		11,296
Total equity securities	941,243		684,470		236,183		20,590
Arbitrage trading account	1,179,606		1,153,079		26,527		—
Total	$	18,649,541	$	1,837,549	$	16,791,402	$	20,590
Liabilities:
Trading account securities sold but not yet purchased	$	1,169	$	1,137	$	32	$	—

18

    The following tables summarize changes in Level 3 assets and liabilities for the three months ended March 31, 2022 and for the year ended December 31, 2021:

Gains (Losses) Included In:
(In thousands)	Beginning Balance		Earnings (Losses)		Other Comprehensive Income (Losses)		Impairments		Purchases		Sales		Paydowns / Maturities		Transfers In / (Out)		Ending Balance
Three Months Ended March 31, 2022
Assets:
Equity securities:
Common stocks	$	9,294	$	(4,594)	$	—	$	—	$	—	$	—	$	—	$	—	$	4,700
Preferred stocks	11,296		—		—		—		675		—		—		—		11,971
Total	20,590		(4,594)		—		—		675		—		—		—		16,671
Arbitrage trading account	—		—		—		—		—		—		—		—		—
Total	$	20,590	$	(4,594)	$	—	$	—	$	675	$	—	$	—	$	—	$	16,671
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	(1)	$	—	$	—	$	—	$	—	$	—	$	1	$	—
Year Ended December 31, 2021
Assets:
Fixed maturities securities available for sale:
Corporate	$	1,000	$	—	$	—	$	—	$	—	$	(1,000)	$	—	$	—	$	—
Total	1,000		—		—		—		—		(1,000)		—		—		—
Equity securities:
Common stocks	9,215		640		—		—		—		(561)		—		—		9,294
Preferred stocks	9,331		(35)		—		—		2,000		—		—		—		11,296
Total	18,546		605		—		—		2,000		(561)		—		—		20,590
Arbitrage trading account	—		8		—		—		—		(8)		—		—		—
Total	$	19,546	$	613	$	—	$	—	$	2,000	$	(1,569)	$	—	$	—	$	20,590
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	1	$	—	$	—	$	(1)	$	—	$	—	$	—	$	—

    For the three months ended March 31, 2022, there was one security transferred into Level 3. For the year ended December 31, 2021, there were no securities transferred into or out of Level 3.

19

(17) Reserves for Loss and Loss Expenses

    The Company's reserves for losses and loss expenses are comprised of case reserves and incurred but not reported liabilities ("IBNR"). When a claim is reported, a case reserve is established for the estimated ultimate payment based upon known information about the claim. As more information about the claim becomes available over time, case reserves are adjusted up or down as appropriate. Reserves are also established on an aggregate basis to provide for IBNR liabilities and expected loss reserve development on reported claims.

    Loss reserves included in the Company’s financial statements represent management’s best estimates based upon an actuarially derived point estimate and other considerations. The Company uses a variety of actuarial techniques and methods to derive an actuarial point estimate for each operating unit. These methods include paid loss development, incurred loss development, paid and incurred Bornhuetter-Ferguson methods and frequency and severity methods. In circumstances where one actuarial method is considered more credible than the others, that method is used to set the point estimate. The actuarial point estimate may also be based on a judgmental weighting of estimates produced from each of the methods considered. Industry loss experience is used to supplement the Company’s own data in selecting “tail factors” in areas where the Company’s own data is limited. The actuarial data is analyzed by line of business, coverage and accident or policy year, as appropriate, for each operating unit.

    The establishment of the actuarially derived loss reserve point estimate also includes consideration of qualitative factors that may affect the ultimate losses. These qualitative considerations include, among others, the impact of re-underwriting initiatives, changes in the mix of business, changes in distribution sources and changes in policy terms and conditions.

    The key assumptions used to arrive at the best estimate of loss reserves are the expected loss ratios, rate of loss cost inflation, and reported and paid loss emergence patterns. Expected loss ratios represent management’s expectation of losses at the time the business is priced and written, before any actual claims experience has emerged. This expectation is a significant determinant of the estimate of loss reserves for recently written business where there is little paid or incurred loss data to consider. Expected loss ratios are generally derived from historical loss ratios adjusted for the impact of rate changes, loss cost trends and known changes in the type of risks underwritten. Expected loss ratios are estimated for each key line of business within each operating unit. Expected loss cost inflation is particularly important for the long-tail lines, such as excess casualty, and claims with a high medical component, such as workers’ compensation. Reported and paid loss emergence patterns are used to project current reported or paid loss amounts to their ultimate settlement value. Loss development factors are based on the historical emergence patterns of paid and incurred losses, and are derived from the Company’s own experience and industry data. The paid loss emergence pattern is also significant to excess and assumed workers’ compensation reserves because those reserves are discounted to their estimated present value based upon such estimated payout patterns.

    Loss frequency and severity are measures of loss activity that are considered in determining the key assumptions described in our discussion of loss and loss expense reserves, including expected loss ratios, rate of loss cost inflation and reported and paid loss emergence patterns. Loss frequency is a measure of the number of claims per unit of insured exposure, and loss severity is a measure of the average size of claims. Factors affecting loss frequency include the effectiveness of loss controls and safety programs and changes in economic activity or weather patterns. Factors affecting loss severity include changes in policy limits, retentions, rate of inflation and judicial interpretations.

    Another factor affecting estimates of loss frequency and severity is the loss reporting lag, which is the period of time between the occurrence of a loss and the date the loss is reported to the Company. The length of the loss reporting lag affects our ability to accurately predict loss frequency (loss frequencies are more predictable for lines with short reporting lags) as well as the amount of reserves needed for incurred but not reported losses (less IBNR is required for lines with short reporting lags). As a result, loss reserves for lines with short reporting lags are likely to have less variation from initial loss estimates. For lines with short reporting lags, which include commercial automobile, primary workers’ compensation, other liability (claims-made) and property business, the key assumption is the loss emergence pattern used to project ultimate loss estimates from known losses paid or reported to date. For lines of business with long reporting lags, which include other liability (occurrence), products liability, excess workers’ compensation and liability reinsurance, the key assumption is the expected loss ratio since there is often little paid or incurred loss data to consider. Historically, the Company has experienced less variation from its initial loss estimates for lines of businesses with short reporting lags than for lines of business with long reporting lags.

    The key assumptions used in calculating the most recent estimate of the loss reserves are reviewed each quarter and adjusted, to the extent necessary, to reflect the latest reported loss data, current trends and other factors observed.

20

    The table below provides a reconciliation of the beginning and ending reserve balances:

	March 31,
(In thousands)	2022		2021
Net reserves at beginning of period	$	12,848,362	$	11,620,393
Net provision for losses and loss expenses:
Claims occurring during the current year (1)	1,327,695		1,115,173
Increase (decrease) in estimates for claims occurring in prior years (2) (3)	3,761		(859)
Loss reserve discount accretion	7,796		7,278
Total	1,339,252		1,121,592
Net payments for claims:
Current year	84,598		97,586
Prior years	933,656		794,472
Total	1,018,254		892,058
Foreign currency translation	9,983		(14,779)
Net reserves at end of period	13,179,343		11,835,148
Ceded reserves at end of period	2,543,546		2,245,380
Gross reserves at end of period	$	15,722,889	$	14,080,528

_______________________________________

(1) Claims occurring during the current year are net of loss reserve discounts of $7 million and $5 million for the three months ended March 31, 2022 and 2021, respectively.

(2) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years decreased by $4 million and $5 million for the three months ended March 31, 2022 and 2021, respectively.

(3) For certain retrospectively rated insurance policies and reinsurance agreements, reserve development is offset by additional or return premiums. Favorable development, net of additional and return premiums, was $1 million and $3 million for the three months ended March 31, 2022 and 2021, respectively.

The COVID-19 global pandemic has impacted, and may further impact, the Company’s results through its effect on claim frequency and severity. Loss cost trends have been impacted and may be further impacted by COVID-19-related claims in certain lines of business. Losses incurred from COVID-19-related claims have been offset, to a certain extent, by lower claim frequency in certain lines of our businesses; however, as the economy and legal systems have reopened, the benefit of lower claim frequency has continued to abate. Although as populations continue to be vaccinated against the virus and the effects of the pandemic have receded in many jurisdictions, most particularly the United States, it remains too early to determine the ultimate net impact of COVID-19 on the Company. New variants of the COVID-19 virus, including the “Omicron” variant, continue to create risks with respect to loss costs and the potential for renewed impact of the other effects of COVID-19 associated with economic conditions, inflation, and social distancing and work from home rules.

Most of the COVID-19-related claims reported to the Company to date involve certain short-tailed lines of business, including contingency and event cancellation, business interruption, and film production delay. The Company has also received COVID-19-related claims for longer-tailed casualty lines of business such as workers’ compensation and other liability; however, the estimated incurred loss impact for these reported claims are not material at this time. Given the continuing uncertainty regarding the pandemic's pervasiveness, the future impact that the pandemic may have on claim frequency and severity remains uncertain at this time.

The Company has estimated the potential COVID-19 impact to its contingency and event cancellation, workers’ compensation, and other lines of business under a number of possible scenarios; however, due to COVID-19’s continued evolving impact, there remains a high degree of uncertainty around the Company’s COVID-19 reserves. In addition, should the pandemic continue or worsen as a result of new COVID-19 variants or otherwise, governments in the jurisdictions where we operate may renew their efforts to expand policy coverage terms beyond the policy’s intended coverage. Accordingly, losses arising from these actions, and the other factors described above, could exceed the Company’s reserves established for those related policies.

As of March 31, 2022, the Company had recognized losses for COVID-19-related claims activity, net of reinsurance, of approximately $290 million, of which $246 million relates to the Insurance segment and $44 million relates to the Reinsurance & Monoline Excess segment. Such $290 million of COVID-19-related losses included $268 million of reported losses and $22 million of IBNR. For the three months ended March 31, 2022, the Company recognized current accident year losses for COVID-19-related claims activity, net of reinsurance, of approximately $1 million, which relates to the Insurance segment.

21

During the three months ended March 31, 2022, favorable prior year development (net of additional and return premiums) of $1 million included $6 million of favorable development for the Insurance segment, largely offset by $5 million of adverse development for the Reinsurance & Monoline Excess segment.

The overall favorable development for the Insurance segment was primarily attributable to favorable development on the 2021 accident year, largely offset by adverse development on the 2015 through 2019 accident years. The favorable development on the 2021 accident year was concentrated in the commercial auto liability, other liability and accident and health (employer stop loss) lines of business. The Company continued to experience lower reported claim frequency in commercial auto and other liability in 2021 relative to historical averages, and lower reported incurred losses relative to our expectations. These trends began in 2020, and were likely caused by the impacts of the COVID-19 pandemic, including, for example, lockdowns, reduced driving/traffic, significant work from home, court closures, and similar reduced activities and travel. While reported claim frequency in these lines increased in 2021 relative to 2020, it remained below the historical levels pre- the start of the COVID-19 pandemic. Due to the ongoing uncertainty regarding the ultimate impacts of the COVID-19 pandemic on accident year 2021 incurred losses, the Company remains cautious in factoring in these trends in setting its initial loss ratio picks for this year. As accident year 2021 has begun to mature, we have recognized some of the favorable reported experience in our ultimate loss picks made as of March 31, 2022. The adverse development on the 2015 through 2019 accident years is concentrated in the other liability line of business, and to a lesser degree professional liability and commercial auto liability. The development is driven by a larger than expected number of large losses reported. The large losses particularly impacted the excess and surplus lines casualty classes of business.

The overall adverse development for the Reinsurance & Monoline Excess segment was driven mainly by adverse development in the non-proportional reinsurance assumed liability and professional liability lines of business, largely offset by favorable development in excess workers' compensation. Both the adverse and favorable development was spread across many prior accident years. The adverse development was associated primarily with our U.S. assumed reinsurance business, and related to accounts insuring construction projects and professional liability exposures. The favorable excess workers' compensation development was driven by continued lower claim frequency and reported losses relative to our expectations and to favorable claim settlements.

During the three months ended March 31, 2021, favorable prior year development (net of additional and return premiums) of $3 million included $6 million of favorable development for the Insurance segment, partially offset by $3 million of adverse development for the Reinsurance & Monoline Excess segment.

The overall favorable development for the Insurance segment was primarily attributable to favorable development on the 2020 accident year, partially offset by adverse development on the 2016 through 2018 accident years. The favorable development on the 2020 accident year was largely concentrated in the commercial auto liability and other liability lines of business. During 2020, the Company achieved larger rate increases in these lines of business than were contemplated in its budget and initial loss ratio selections. The Company also experienced significantly lower reported claim frequency in these lines in 2020 relative to historical averages, and lower reported incurred losses relative to our expectations. We believe that the lower claim frequency and lower reported incurred losses were caused by the impacts of the COVID-19 pandemic, including for example, lockdowns, reduced driving and traffic, work from home, court closures, etc.; however, due to the ongoing uncertainty regarding the ultimate impacts of the pandemic on accident year 2020 incurred losses, the Company did not adjust its reserves based on these lower trends during 2020. As of March 31, 2021, we began to recognize some of the favorable accident year 2020 experience in certain lines in our ultimate loss picks. The adverse development on the 2016 through 2018 accident years is concentrated in the other liability line of business, and is driven by a higher than expected number of large losses reported. The large losses particularly impacted directors and officers liability and excess and surplus lines casualty classes of business.

Prior year reserve development for the Reinsurance & Monoline Excess segment was less significant during the first quarter of 2021, and consisted of small adverse or favorable movements across many lines of business, which largely offset each other. The largest contributor to the slight overall adverse development for the segment was non-proportional reinsurance assumed property business, which was impacted by higher than expected reported losses on property per risk treaties written in the U.S. and U.K. related to accident year 2020.

22

(18) Fair Value of Financial Instruments

    The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	March 31, 2022				December 31, 2021
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	16,426,196	$	16,433,614	$	16,602,673	$	16,614,118
Equity securities	1,126,491		1,126,491		941,243		941,243
Arbitrage trading account	1,188,910		1,188,910		1,179,606		1,179,606
Loans receivable	115,097		115,556		115,172		116,534
Cash and cash equivalents	2,114,841		2,114,841		1,568,843		1,568,843
Due from broker	—		—		20,448		20,448
Liabilities:
Due to broker	77,601		77,601		—		—
Trading account payable to brokers and clearing organizations	56,652		56,652		53,636		53,636
Trading account securities sold but not yet purchased	241		241		1,169		1,169
Senior notes and other debt	1,834,155		1,788,992		2,259,416		2,526,630
Subordinated debentures	1,007,832		957,670		1,007,652		1,095,600

    The estimated fair values of the Company’s fixed maturity securities, equity securities and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 15. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input.

(19) Premiums and Reinsurance Related Information

The following is a summary of insurance and reinsurance financial information:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Written premiums:
Direct	$	2,542,336	$	2,177,162
Assumed	317,500		307,550
Ceded	(446,582)		(434,674)
Total net premiums written	$	2,413,254	$	2,050,038
Earned premiums:
Direct	$	2,404,597	$	2,003,045
Assumed	292,373		259,541
Ceded	(447,883)		(412,630)
Total net premiums earned	$	2,249,087	$	1,849,956
Ceded losses and loss expenses incurred	$	243,294	$	298,740
Ceded commissions earned	$	117,445	$	101,680

23

The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	25,218	$	22,883
Provision for expected credit losses	3,018		1,381
Allowance for expected credit losses, end of period	$	28,236	$	24,264

The Company reinsures a portion of its insurance exposures in order to reduce its net liability on individual risks and catastrophe losses. The Company also cedes premiums to state assigned risk plans and captive insurance companies. Estimated amounts due from reinsurers are reported net of an allowance for expected credit losses.

The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	7,713	$	7,801
Provision for expected credit losses	(58)		(428)
Allowance for expected credit losses, end of period	$	7,655	$	7,373

(20) Restricted Stock Units

    Pursuant to its stock incentive plan, the Company may issue restricted stock units ("RSUs") to employees of the Company and its subsidiaries. The RSUs generally vest three to five years from the award date and are subject to other vesting and forfeiture provisions contained in the award agreement. RSUs are expensed pro-ratably over the vesting period. RSU expenses were $11 million and $12 million for the three months ended March 31, 2022 and 2021 respectively. A summary of RSUs issued in the three months ended March 31, 2022 and 2021 follows:

($ in thousands)	Units	Fair Value
2022	1,660	$	150
2021	885	$	40

(21) Litigation and Contingent Liabilities

    In the ordinary course of business, the Company is subject to disputes, litigation and arbitration arising from its insurance and reinsurance businesses. These matters are generally related to insurance and reinsurance claims and are considered in the establishment of loss and loss expense reserves. In addition, the Company may also become involved in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in handling of insurance claims. The Company expects its ultimate liability with respect to such matters will not be material to its financial condition. However, adverse outcomes on such matters are possible, from time to time, and could be material to the Company’s results of operations in any particular financial reporting period.

(22) Leases

    Lessees are required to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months on the balance sheet. All leases disclosed within this footnote are classified as operating leases. Recognized right-of-use asset and lease liability are reported within other assets and other liabilities, respectively, in the consolidated balance sheet. Lease expense is reported in other operating costs and expenses in the consolidated statement of income and accounted for on a straight-line basis over the lease term.

    To determine the discount rate used to calculate present value of future minimum lease payments, the Company uses its incremental borrowing rate during the lease commencement period in line with the respective lease duration. In certain cases, the Company has the option to renew the lease. Lease renewal future payments are included in the present value of the future minimum lease payments when the Company determines it is reasonably certain to renew.

24

    The main leases entered into by the Company are for office space used by the Company’s operating units across the world. Additionally, the Company, to a lesser extent, has equipment leases mainly for office equipment. Further information relating to operating lease expense and other operating lease information are as follows:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Leases:
Lease cost	$	10,198	$	11,264
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows	$	10,993	$	11,377
Right-of-use assets obtained in exchange for new lease liabilities	$	17,269	$	30

	As of March 31,
($ in thousands)	2022			2021
Right-of-use assets	$	180,424		$	156,942
Lease liabilities	$	217,086		$	195,590
Weighted-average remaining lease term	7.3 years			6.7 years
Weighted-average discount rate	4.58		%	5.94		%

Contractual maturities of the Company’s future minimum lease payments are as follows:

(In thousands)	March 31, 2022
Contractual Maturities:
2022	$	34,336
2023	45,618
2024	39,676
2025	29,793
2026	23,150
Thereafter	77,609
Total undiscounted future minimum lease payments	250,182
Less: Discount impact	33,096
Total lease liability	$	217,086

25

(23) Business Segments

    The Company’s reportable segments include the following two business segments, plus a corporate segment:

•Insurance - predominantly commercial insurance business, including excess and surplus lines, admitted lines and specialty personal lines throughout the United States, as well as insurance business in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia.

•Reinsurance & Monoline Excess - reinsurance business on a facultative and treaty basis, primarily in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific Region and South Africa, as well as operations that solely retain risk on an excess basis.

    The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company's overall effective tax rate.

    Summary financial information about the Company's reporting segments is presented in the following tables. Income (loss) before income taxes by segment includes allocated investment income. Identifiable assets by segment are those assets used in or allocated to the operation of each segment.

	Revenues
(In thousands)	Earned Premiums (1)		Investment Income		Other		Total (2)		Pre-Tax Income (Loss)		Net Income (Loss) to Common Stockholders
Three months ended March 31, 2022
Insurance	$	1,962,835	$	137,654	$	8,676	$	2,109,165	$	382,412	$	315,552
Reinsurance & Monoline Excess	286,252		27,423		—		313,675		57,628		47,080
Corporate, other and eliminations (3)	—		8,435		117,869		126,304		(73,872)		(59,817)
Net investment gains	—		—		366,265		366,265		366,265		287,823
Total	$	2,249,087	$	173,512	$	492,810	$	2,915,409	$	732,433	$	590,638
Three months ended March 31, 2021
Insurance	$	1,604,979	$	105,237	$	8,279	$	1,718,495	$	257,109	$	198,708
Reinsurance & Monoline Excess	244,977		37,708		—		282,685		68,649		54,471
Corporate, other and eliminations (3)	—		15,632		105,218		120,850		(64,529)		(52,606)
Net investment gains	—		—		34,839		34,839		34,839		28,952
Total	$	1,849,956	$	158,577	$	148,336	$	2,156,869	$	296,068	$	229,525

_________________

(1) Certain amounts included in earned premiums of each segment are related to inter-segment transactions.

(2) Revenues for Insurance from foreign countries for the three months ended March 31, 2022 and 2021 were $235 million and $196 million, respectively. Revenues for Reinsurance & Monoline Excess from foreign countries for the three months ended March 31, 2022 and 2021 were $96 million and $88 million, respectively.

(3) Corporate, other and eliminations represent corporate revenues and expenses that are not allocated to business segments.

Identifiable Assets

(In thousands)	March 31, 2022		December 31, 2021
Insurance	$	25,057,202	$	24,403,918
Reinsurance & Monoline Excess	5,058,976		4,917,985
Corporate, other and eliminations	2,134,776		2,725,973
Consolidated	$	32,250,954	$	32,047,876

26

    Net premiums earned by major line of business are as follows:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Insurance:
Other liability	$	754,456	$	611,404
Short-tail lines (1)	375,212		324,740
Workers' compensation	285,423		267,449
Commercial automobile	282,234		220,761
Professional liability	265,510		180,626
Total Insurance	1,962,835		1,604,979
Reinsurance & Monoline Excess:
Casualty reinsurance	184,122		149,638
Property reinsurance	50,234		49,466
Monoline excess (2)	51,896		45,873
Total Reinsurance & Monoline Excess	286,252		244,977
Total	$	2,249,087	$	1,849,956

______________

(1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines.

(2) Monoline excess includes operations that solely retain risk on an excess basis.

(24) Subsequent Event

On April 1, 2022, the Company entered into a senior unsecured revolving credit facility that provides for revolving, unsecured borrowings up to an aggregate of $300 million with a $50 million sublimit for letters of credit. The Company may increase the amount available under the facility to a maximum of $500 million subject to obtaining lender commitments for the increase and other customary conditions. Borrowings under the facility may be used for working capital and other general corporate purposes. All borrowings under the facility must be repaid by April 1, 2027, except that letters of credit outstanding on that date may remain outstanding until April 1, 2028 (or such later date approved by all lenders). Our ability to utilize the facility is conditioned on the satisfaction of representations, warranties and covenants that are customary for facilities of this type. As of the date of this report, there were no borrowings outstanding under the facility.

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SAFE HARBOR STATEMENT

    This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2022 and beyond, are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition, including new entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts, including claims for cybersecurity-related risks; natural and man-made catastrophic losses, including as a result of terrorist activities; the ongoing COVID-19 pandemic; the impact of climate change, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response, on our results and financial condition; foreign currency and political risks (including those associated with the United Kingdom's withdrawal from the European Union, or "Brexit") relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019; the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; potential difficulties with technology and/or cyber security issues; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission.

    These risks and uncertainties could cause our actual results for the year 2022 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Our future financial performance is dependent upon factors discussed in our Annual Report on Form 10-K, elsewhere in this Form 10-Q and our other SEC filings. Forward-looking statements speak only as of the date on which they are made. Except to the extent required by applicable laws, the Company does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

28

Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

    W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property and casualty business: Insurance and Reinsurance & Monoline Excess. Our decentralized structure provides us with the flexibility to respond quickly and efficiently to local or specific market conditions and to pursue specialty business niches. It also allows us to be closer to our customers in order to better understand their individual needs and risk characteristics. While providing our business units with certain operating autonomy, our structure allows us to capitalize on the benefits of economies of scale through centralized capital, investment, reinsurance, enterprise risk management, and actuarial, financial and corporate legal staff support. The Company’s primary sources of revenues and earnings are its insurance operations and its investments.

    An important part of our strategy is to form new operating units to capitalize on various business opportunities. Over the years, the Company has formed numerous operating units that are focused on important parts of the economy in the U.S., including healthcare, cyber security, energy and agriculture, and on growing international markets, including the Asia-Pacific region, South America and Mexico.

    The profitability of the Company’s insurance business is affected primarily by the adequacy of premium rates. The ultimate adequacy of premium rates is not known with certainty at the time an insurance policy is issued because premiums are determined before claims are reported. The ultimate adequacy of premium rates is affected mainly by the severity and frequency of claims, which are influenced by many factors, including natural and other disasters, regulatory measures and court decisions that define and change the extent of coverage and the effects of economic inflation on the amount of compensation for injuries or losses. General insurance prices are also influenced by available insurance capacity, i.e., the level of capital employed in the industry, and the industry’s willingness to deploy that capital.

    The Company’s profitability is also affected by its investment income and investment gains. The Company’s invested assets are invested principally in fixed maturity securities. The return on fixed maturity securities is affected primarily by general interest rates, as well as the credit quality and duration of the securities. Returns available on fixed maturity investments have been at low levels for an extended period.

    The Company also invests in equity securities, merger arbitrage securities, investment funds, private equity, loans and real estate related assets. The Company's investments in investment funds and its other alternative investments have experienced, and the Company expects to continue to experience, greater fluctuations in investment income. The Company's share of the earnings or losses from investment funds is generally reported on a one-quarter lag in order to facilitate the timely completion of the Company's consolidated financial statements.

On February 25, 2022, the Company announced that its Board of Directors approved a 3-for-2 common stock split which was paid in the form of a stock dividend to holders of record as of March 9, 2022. The additional shares were issued on March 23, 2022. Shares outstanding and per share amounts in this Form 10-Q reflect such 3-for-2 common stock split.

On March 7, 2022, the Company sold a real estate investment consisting of an office building located in London for £718 million. The Company realized a pretax gain of $317 million in the first quarter of 2022, before transaction expenses and the impact of foreign currency, including the reversal of the currency translation adjustment. The gain was $251 million after such adjustments.

On April 1, 2022, the Company entered into a senior unsecured revolving credit facility that provides for revolving, unsecured borrowings up to an aggregate of $300 million. Borrowings under the facility may be used for working capital and other general corporate purposes and must be repaid by April 1, 2027. Our ability to utilize the facility is conditioned on the satisfaction of representations, warranties and covenants that are customary for facilities of this type. As of the date of this report, there were no borrowings outstanding under the facility.

The COVID-19 pandemic, including the related impact on the U.S. and global economies, continued to adversely affect our results of operations. For the three months ended on March 31, 2022, the Company recorded approximately $1 million for current accident year COVID-19-related losses, net of reinsurance. At the same time, COVID-19 has led to reduced loss frequency in certain lines of business (which has begun to return to pre-pandemic levels as many economies and legal systems have reopened as a result of higher levels of vaccination). The ultimate impact of COVID-19 on the economy and the Company’s results of operations, financial position and liquidity is not within the Company’s control and remains unclear due to, among other factors, uncertainty in connection with its claims, reserves and reinsurance recoverables.

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Critical Accounting Estimates

    The following presents a discussion of accounting policies and estimates relating to reserves for losses and loss expenses, assumed premiums and allowance for expected credit losses on investments. Management believes these policies and estimates are the most critical to its operations and require the most difficult, subjective and complex judgments.

    Reserves for Losses and Loss Expenses. To recognize liabilities for unpaid losses, either known or unknown, insurers establish reserves, which is a balance sheet account representing estimates of future amounts needed to pay claims and related expenses with respect to insured events which have occurred. Estimates and assumptions relating to reserves for losses and loss expenses are based on complex and subjective judgments, often including the interplay of specific uncertainties with related accounting and actuarial measurements. Such estimates are also susceptible to change as significant periods of time may elapse between the occurrence of an insured loss, the report of the loss to the insurer, the ultimate determination of the cost of the loss and the insurer’s payment of that loss.

    In general, when a claim is reported, claims personnel establish a “case reserve” for the estimated amount of the ultimate payment based upon known information about the claim at that time. The estimate represents an informed judgment based on general reserving practices and reflects the experience and knowledge of the claims personnel regarding the nature and value of the specific type of claim. Reserves are also established on an aggregate basis to provide for losses incurred but not reported (“IBNR”) to the insurer, potential inadequacy of case reserves and the estimated expenses of settling claims, including legal and other fees and general expenses of administrating the claims adjustment process. Reserves are established based upon the then current legal interpretation of coverage provided.

    In examining reserve adequacy, several factors are considered in estimating the ultimate economic value of losses. These factors include, among other things, historical data, legal developments, changes in social attitudes and economic conditions, including the effects of inflation. The actuarial process relies on the basic assumption that past experience, adjusted judgmentally for the effects of current developments and anticipated trends, is an appropriate basis for predicting future outcomes. Reserve amounts are based on management’s informed estimates and judgments using currently available data. As additional experience and other data become available and are reviewed, these estimates and judgments may be revised. This may result in reserve increases or decreases that would be reflected in our results in periods in which such estimates and assumptions are changed.

    Reserves do not represent an exact calculation of liability. Rather, reserves represent an estimate of what management expects the ultimate settlement and claim administration will cost. While the methods for establishing reserves are well tested over time, some of the major assumptions about anticipated loss emergence patterns are subject to uncertainty. These estimates, which generally involve actuarial projections, are based on management’s assessment of facts and circumstances then known, as well as estimates of trends in claims severity and frequency, judicial theories of liability and other factors, including the actions of third parties which are beyond the Company’s control. These variables are affected by external and internal events, such as inflation and economic volatility, judicial and litigation trends, reinsurance coverage, legislative changes and claim handling and reserving practices, which make it more difficult to accurately predict claim costs. The inherent uncertainties of estimating reserves are greater for certain types of liabilities where long periods of time elapse before a definitive determination of liability is made. Because setting reserves is inherently uncertain, the Company cannot provide assurance that its current reserves will prove adequate in light of subsequent events.

    Loss reserves included in the Company’s financial statements represent management’s best estimates based upon an actuarially derived point estimate and other considerations. The Company uses a variety of actuarial techniques and methods to derive an actuarial point estimate for each operating unit. These methods include paid loss development, incurred loss development, paid and incurred Bornhuetter-Ferguson methods and frequency and severity methods. In circumstances where one actuarial method is considered more credible than the others, that method is used to set the point estimate. For example, the paid loss and incurred loss development methods rely on historical paid and incurred loss data. For new lines of business, where there is insufficient history of paid and incurred claims data, or in circumstances where there have been significant changes in claim practices, the paid and incurred loss development methods would be less credible than other actuarial methods. The actuarial point estimate may also be based on a judgmental weighting of estimates produced from each of the methods considered. Industry loss experience is used to supplement the Company’s own data in selecting “tail factors” and in areas where the Company’s own data is limited. The actuarial data is analyzed by line of business, coverage and accident or policy year, as appropriate, for each operating unit.

    The establishment of the actuarially derived loss reserve point estimate also includes consideration of qualitative factors that may affect the ultimate losses. These qualitative considerations include, among others, the impact of re-underwriting initiatives, changes in the mix of business, changes in distribution sources and changes in policy terms and conditions. Examples of changes in terms and conditions that can have a significant impact on reserve levels are the use of

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aggregate policy limits, the expansion of coverage exclusions, whether or not defense costs are within policy limits, and changes in deductibles and attachment points.

    The key assumptions used to arrive at the best estimate of loss reserves are the expected loss ratios, rate of loss cost inflation, and reported and paid loss emergence patterns. Expected loss ratios represent management’s expectation of losses at the time the business is written, before any actual claims experience has emerged. This expectation is a significant determinant of the estimate of loss reserves for recently written business where there is little paid or incurred loss data to consider. Expected loss ratios are generally derived from historical loss ratios adjusted for the impact of rate changes, loss cost trends and known changes in the type of risks underwritten. Expected loss ratios are estimated for each key line of business within each operating unit. Expected loss cost inflation is particularly important for the long-tail lines, such as excess casualty, and claims with a high medical component, such as workers’ compensation. Reported and paid loss emergence patterns are used to project current reported or paid loss amounts to their ultimate settlement value. Loss development factors are based on the historical emergence patterns of paid and incurred losses, and are derived from the Company’s own experience and industry data. The paid loss emergence pattern is also significant to excess and assumed workers’ compensation reserves because those reserves are discounted to their estimated present value based upon such estimated payout patterns. Management believes the estimates and assumptions it makes in the reserving process provide the best estimate of the ultimate cost of settling claims and related expenses with respect to insured events which have occurred; however, different assumptions and variables could lead to significantly different reserve estimates.

    Loss frequency and severity are measures of loss activity that are considered in determining the key assumptions described in our discussion of loss and loss expense reserves, including expected loss ratios, rate of loss cost inflation and reported and paid loss emergence patterns. Loss frequency is a measure of the number of claims per unit of insured exposure, and loss severity is a measure of the average size of claims. Factors affecting loss frequency include the effectiveness of loss controls and safety programs and changes in economic activity or weather patterns. Factors affecting loss severity include changes in policy limits, retentions, rate of inflation and judicial interpretations.

    Another factor affecting estimates of loss frequency and severity is the loss reporting lag, which is the period of time between the occurrence of a loss and the date the loss is reported to the Company. The length of the loss reporting lag affects our ability to accurately predict loss frequency (loss frequencies are more predictable for lines with short reporting lags) as well as the amount of reserves needed for incurred but not reported losses (less IBNR is required for lines with short reporting lags). As a result, loss reserves for lines with short reporting lags are likely to have less variation from initial loss estimates. For lines with short reporting lags, which include commercial automobile, primary workers’ compensation, other liability (claims-made) and property business, the key assumption is the loss emergence pattern used to project ultimate loss estimates from known losses paid or reported to date. For lines of business with long reporting lags, which include other liability (occurrence), products liability, excess workers’ compensation and liability reinsurance, the key assumption is the expected loss ratio since there is often little paid or incurred loss data to consider. Historically, the Company has experienced less variation from its initial loss estimates for lines of businesses with short reporting lags than for lines of business with long reporting lags.

    The key assumptions used in calculating the most recent estimate of the loss reserves are reviewed each quarter and adjusted, to the extent necessary, to reflect the latest reported loss data, current trends and other factors observed. If the actual level of loss frequency and severity are higher or lower than expected, the ultimate losses will be different than management’s estimate. The following table reflects the impact of changes (which could be favorable or unfavorable) in frequency and severity, relative to our assumptions, on our loss estimate for claims occurring in 2021:

(In thousands)	Frequency (+/-)
Severity (+/-)	1%		5%		10%
1%	$	98,916	$	297,732	$	546,252
5%	297,732		504,422		762,785
10%	546,252		762,785		1,033,450

    Our net reserves for losses and loss expenses of approximately $13.2 billion as of March 31, 2022 relate to multiple accident years. Therefore, the impact of changes in frequency or severity for more than one accident year could be higher or lower than the amounts reflected above. The impact of such changes would likely be manifested gradually over the course of many years, as the magnitude of the changes became evident.

    Approximately $2.8 billion, or 22%, of the Company’s net loss reserves as of March 31, 2022 relate to the Reinsurance & Monoline Excess segment. There is a higher degree of uncertainty and greater variability regarding estimates of excess workers' compensation and assumed reinsurance loss reserves. In the case of excess workers’ compensation, our policies generally attach at $1 million or higher. The claims which reach our layer therefore tend to involve the most serious injuries and many remain open for the lifetime of the claimant, which extends the claim settlement tail. These claims also occur less

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frequently but tend to be larger than primary claims, which increases claim variability. In the case of assumed reinsurance our loss reserve estimates are based, in part, upon information received from ceding companies. If information received from ceding companies is not timely or correct, the Company’s estimate of ultimate losses may not be accurate. Furthermore, due to delayed reporting of claim information by ceding companies, the claim settlement tail for assumed reinsurance is also extended. Management considers the impact of delayed reporting and the extended tail in its selection of loss development factors for these lines of business.

    Information received from ceding companies is used to set initial expected loss ratios, to establish case reserves and to estimate reserves for incurred but not reported losses on assumed reinsurance business. This information, which is generally provided through reinsurance intermediaries, is gathered through the underwriting process and from periodic claim reports and other correspondence with ceding companies. The Company performs underwriting and claim audits of selected ceding companies to determine the accuracy and completeness of information provided to the Company. The information received from the ceding companies is supplemented by the Company’s own loss development experience with similar lines of business as well as industry loss trends and loss development benchmarks.

    Following is a summary of the Company’s reserves for losses and loss expenses by business segment:

(In thousands)	March 31, 2022		December 31, 2021
Insurance	$	10,336,512	$	10,060,420
Reinsurance & Monoline Excess	2,842,831		2,787,942
Net reserves for losses and loss expenses	13,179,343		12,848,362
Ceded reserves for losses and loss expenses	2,543,546		2,542,526
Gross reserves for losses and loss expenses	$	15,722,889	$	15,390,888

    Following is a summary of the Company’s net reserves for losses and loss expenses by major line of business:

(In thousands)	Reported Case Reserves		Incurred But Not Reported		Total
March 31, 2022
Other liability	$	1,719,685	$	3,470,054	$	5,189,739
Workers’ compensation (1)	1,033,303		937,468		1,970,771
Professional liability	478,809		1,048,942		1,527,751
Commercial automobile	525,903		446,277		972,180
Short-tail lines (2)	304,813		371,258		676,071
Total Insurance	4,062,513		6,273,999		10,336,512
Reinsurance & Monoline Excess (1) (3)	1,496,676		1,346,155		2,842,831
Total	$	5,559,189	$	7,620,154	$	13,179,343
December 31, 2021
Other liability	$	1,724,907	$	3,319,665	$	5,044,572
Workers’ compensation (1)	1,016,014		903,448		1,919,462
Professional liability	468,680		1,019,344		1,488,024
Commercial automobile	504,821		424,382		929,203
Short-tail lines (2)	322,917		356,242		679,159
Total Insurance	4,037,339		6,023,081		10,060,420
Reinsurance & Monoline Excess (1) (3)	1,475,623		1,312,319		2,787,942
Total	$	5,512,962	$	7,335,400	$	12,848,362

___________

(1) Reserves for workers’ compensation and Reinsurance & Monoline Excess are net of an aggregate net discount of $444 million and $452 million as of March 31, 2022 and December 31, 2021, respectively.

(2) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines.

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(3) Reinsurance & Monoline Excess includes property and casualty reinsurance, as well as operations that solely retain risk on an excess basis.

    The Company evaluates reserves for losses and loss adjustment expenses on a quarterly basis. Changes in estimates of prior year losses are reported when such changes are made. The changes in prior year loss reserve estimates are generally the result of ongoing analysis of recent loss development trends. Original estimates are increased or decreased as additional information becomes known regarding individual claims and aggregate claim trends.

    Certain of the Company's insurance and reinsurance contracts are retrospectively rated, whereby the Company collects more or less premiums based on the level of loss activity. For those contracts, changes in loss and loss adjustment expenses for prior years may be fully or partially offset by additional or return premiums.

    Net prior year development (i.e., the sum of prior year reserve changes and prior year earned premiums changes) for the three months ended March 31, 2022 and 2021 are as follows:

(In thousands)	2022		2021
Net (increase) decrease in prior year loss reserves	$	(3,761)	$	859
Increase in prior year earned premiums	4,407		2,595
Net favorable prior year development	$	646	$	3,454

The COVID-19 global pandemic has impacted, and may further impact, the Company’s results through its effect on claim frequency and severity. Loss cost trends have been impacted and may be further impacted by COVID-19-related claims in certain lines of business. Losses incurred from COVID-19-related claims have been offset, to a certain extent, by lower claim frequency in certain lines of our businesses; however, as the economy and legal systems have reopened, the benefit of lower claim frequency has begun to abate. Although as populations have continued to be vaccinated against the virus and the effects of the pandemic have receded in many jurisdictions, most particularly the United States, it remains too early to determine the ultimate net impact of COVID-19 on the Company. New variants of the COVID-19 virus, including the “Omicron” variant, continue to create risks with respect to loss costs and the potential for renewed impact of the other effects of COVID-19 associated with economic conditions, inflation, and social distancing and work from home rules.

Most of the COVID-19-related claims reported to the Company to date involve certain short-tailed lines of business, including contingency and event cancellation, business interruption, and film production delay. The Company has also received COVID-19-related claims for longer-tailed casualty lines of business such as workers’ compensation and other liability; however, the estimated incurred loss impact for these reported claims are not material at this time. Given the continuing uncertainty regarding the pandemic's pervasiveness, the future impact that the pandemic may have on claim frequency and severity remains uncertain at this time.

The Company has estimated the potential COVID-19 impact to its contingency and event cancellation, workers’ compensation, and other lines of business under a number of possible scenarios; however, due to COVID-19’s continued evolving impact, there remains a high degree of uncertainty around the Company’s COVID-19 reserves. In addition, should the pandemic continue or worsen as a result of new COVID-19 variants or otherwise, governments in the jurisdictions where we operate may renew their efforts to expand policy coverage terms beyond the policy’s intended coverage. Accordingly, losses arising from these actions,and the other factors described above, could exceed the Company’s reserves established for those related policies.

As of March 31, 2022, the Company had recognized losses for COVID-19-related claims activity, net of reinsurance, of approximately $290 million, of which $246 million relates to the Insurance segment and $44 million relates to the Reinsurance & Monoline Excess segment. Such $290 million of COVID-19-related losses included $268 million of reported losses and $22 million of IBNR. For the three months ended March 31, 2022, the Company recognized current accident year losses for COVID-19-related claims activity, net of reinsurance, of approximately $1 million, which relates to the Insurance segment.

During the three months ended March 31, 2022, favorable prior year development (net of additional and return premiums) of $1 million included $6 million of favorable development for the Insurance segment, largely offset by $5 million of adverse development for the Reinsurance & Monoline Excess segment.

The overall favorable development for the Insurance segment was primarily attributable to favorable development on the 2021 accident year, largely offset by adverse development on the 2015 through 2019 accident years. The favorable development on the 2021 accident year was concentrated in the commercial auto liability, other liability and accident and health (employer stop loss) lines of business. The Company continued to experience lower reported claim frequency in commercial auto and other liability in 2021 relative to historical averages, and lower reported incurred losses relative to our expectations. These trends began in 2020, and were likely caused by the impacts of the COVID-19 pandemic, including, for example,

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lockdowns, reduced driving/traffic, significant work from home, court closures, and similar reduced activities and travel. While reported claim frequency in these lines increased in 2021 relative to 2020, it remained below the historical levels pre- the start of the COVID-19 pandemic. Due to the ongoing uncertainty regarding the ultimate impacts of the COVID-19 pandemic on accident year 2021 incurred losses, the Company remains cautious in factoring in these trends in setting its initial loss ratio picks for this year. As accident year 2021 has begun to mature, we have recognized some of the favorable reported experience in our ultimate loss picks made as of March 31, 2022. The adverse development on the 2015 through 2019 accident years is concentrated in the other liability line of business, and to a lesser degree professional liability and commercial auto liability. The development is driven by a larger than expected number of large losses reported. The large losses particularly impacted the excess and surplus lines casualty classes of business.

The overall adverse development for the Reinsurance & Monoline Excess segment was driven mainly by adverse development in the non-proportional reinsurance assumed liability and professional liability lines of business, largely offset by favorable development in excess workers' compensation. Both the adverse and favorable development was spread across many prior accident years. The adverse development was associated primarily with our U.S. assumed reinsurance business, and related to accounts insuring construction projects and professional liability exposures. The favorable excess workers' compensation development was driven by continued lower claim frequency and reported losses relative to our expectations and to favorable claim settlements.

During the three months ended March 31, 2021, favorable prior year development (net of additional and return premiums) of $3 million included $6 million of favorable development for the Insurance segment, partially offset by $3 million of adverse development for the Reinsurance & Monoline Excess segment.

The overall favorable development for the Insurance segment was primarily attributable to favorable development on the 2020 accident year, partially offset by adverse development on the 2016 through 2018 accident years. The favorable development on the 2020 accident year was largely concentrated in the commercial auto liability and other liability lines of business. During 2020, the Company achieved larger rate increases in these lines of business than were contemplated in its budget and initial loss ratio selections. The Company also experienced significantly lower reported claim frequency in these lines in 2020 relative to historical averages, and lower reported incurred losses relative to our expectations. We believe that the lower claim frequency and lower reported incurred losses were caused by the impacts of the COVID-19 pandemic, including for example, lockdowns, reduced driving and traffic, work from home, court closures, etc.; however, due to the ongoing uncertainty regarding the ultimate impacts of the pandemic on accident year 2020 incurred losses, the Company did not adjust its reserves based on these lower trends during 2020. As of March 31, 2021, we began to recognize some of the favorable accident year 2020 experience in certain lines in our ultimate loss picks. The adverse development on the 2016 through 2018 accident years is concentrated in the other liability line of business, and is driven by a higher than expected number of large losses reported. The large losses particularly impacted directors and officers liability and excess and surplus lines casualty classes of business.

Prior year reserve development for the Reinsurance & Monoline Excess segment was less significant during the first quarter of 2021, and consisted of small adverse or favorable movements across many lines of business, which largely offset each other. The largest contributor to the slight overall adverse development for the segment was non-proportional reinsurance assumed property business, which was impacted by higher than expected reported losses on property per risk treaties written in the U.S. and U.K. related to accident year 2020.

Reserve Discount. The Company discounts its liabilities for certain workers’ compensation reserves. The amount of workers’ compensation reserves that were discounted was $1,336 million and $1,387 million at March 31, 2022 and December 31, 2021, respectively. The aggregate net discount for those reserves, after reflecting the effects of ceded reinsurance, was $444 million and $452 million at March 31, 2022 and December 31, 2021, respectively. At March 31, 2022, discount rates by year ranged from 0.7% to 6.5%, with a weighted average discount rate of 3.4%.

    Substantially all of the workers’ compensation discount (97% of total discounted reserves at March 31, 2022) relates to excess workers’ compensation reserves. In order to properly match loss expenses with income earned on investment securities supporting the liabilities, reserves for excess workers’ compensation business are discounted using risk-free discount rates determined by reference to the U.S. Treasury yield curve. These rates are determined annually based on the weighted average rate for the period. Once established, no adjustments are made to the discount rate for that period, and any increases or decreases in loss reserves in subsequent years are discounted at the same rate, without regard to when any such adjustments are recognized. The expected loss and loss expense payout patterns subject to discounting are derived from the Company’s loss payout experience.

    The Company also discounts reserves for certain other long-duration workers’ compensation reserves (representing approximately 3% of total discounted reserves at March 31, 2022), including reserves for quota share reinsurance and reserves related to losses regarding occupational lung disease. These reserves are discounted at statutory rates permitted by the Department of Insurance of the State of Delaware.

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    Assumed Reinsurance Premiums. The Company estimates the amount of assumed reinsurance premiums that it will receive under treaty reinsurance agreements at the inception of the contracts. These premium estimates are revised as the actual amount of assumed premiums is reported to the Company by the ceding companies. As estimates of assumed premiums are made or revised, the related amount of earned premiums, commissions and incurred losses associated with those premiums are recorded. Estimated assumed premiums receivable were approximately $59 million at March 31, 2022 and $60 million at December 31, 2021. The assumed premium estimates are based upon terms set forth in reinsurance agreements, information received from ceding companies during the underwriting and negotiation of agreements, reports received from ceding companies and discussions and correspondence with reinsurance intermediaries. The Company also considers its own view of market conditions, economic trends and experience with similar lines of business. These premium estimates represent management’s best estimate of the ultimate amount of premiums to be received under its assumed reinsurance agreements.

    Allowance for Expected Credit Losses on Investments.

    Fixed Maturity Securities – For fixed maturity securities in an unrealized loss position where the Company intends to sell, or it is more likely than not that it will be required to sell the security before recovery in value, the amortized cost basis is written down to fair value through net investment gains (losses). For fixed maturity securities in an unrealized loss position where the Company does not intend to sell, or it is more likely than not that it will not be required to sell the security before recovery in value, the Company evaluates whether the decline in fair value has resulted from credit losses or all other factors (non-credit factors). In making this assessment, the Company considers the extent to which fair value is less than amortized cost, changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, an allowance for expected credit losses is recorded for the credit loss through net investment gains (losses), limited by the amount that the fair value is less than the amortized cost basis. The allowance is adjusted for any change in expected credit losses and subsequent recoveries through net investment gains (losses). The impairment related to non-credit factors is recognized in other comprehensive income (loss).

    The Company’s credit assessment of allowance for expected credit losses uses a third party model for available for sale and held to maturity securities, as well as loans receivable. The allowance for expected credit losses is generally based on the performance of the underlying collateral under various economic and default scenarios that involve subjective judgments and estimates by management. Modeling these securities involves various factors, such as projected default rates, the nature and realizable value of the collateral, if any, the ability of the issuer to make scheduled payments, historical performance and other relevant economic and performance factors. A discounted cash flow analysis is used to ascertain the amount of the allowance for expected credit losses, if any. In general, the model reverts to the rating-level long-term average marginal default rates based on 10 years of historical data, beyond the forecast period. For other inputs, the model in most cases reverts to the baseline long-term assumptions linearly over 5 years beyond the forecast period. The long-term assumptions are based on the historical averages.

    The Company classifies its fixed maturity securities by credit rating, primarily based on ratings assigned by credit rating agencies. For purposes of classifying securities with different ratings, the Company uses the average of the credit ratings assigned, unless in limited situations the Company’s own analysis indicates an internal rating is more appropriate. Securities that are not rated by a rating agency are evaluated and classified by the Company on a case-by-case basis.

    A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at March 31, 2022 is presented in the table below:

($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Foreign government	37	$	132,306	$	30,753
Corporate	12	30,071		3,158
State and municipal	1	13,583		1,422
Mortgage-backed	7	1,785		48
Asset-backed	1	37		5
Total	58	$	177,782	$	35,386

    As of March 31, 2022, the Company has recorded an allowance for expected credit losses on fixed maturity securities of $27 million. The Company has evaluated the remaining fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due.

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Loans Receivable – For loans receivable, the Company estimates an allowance for expected credit losses based on relevant information about past events, including historical loss experience, current conditions and forecasts that affect the expected collectability of the amortized cost of the financial asset. The allowance for expected credit losses is presented as a reduction to amortized cost of the financial asset in the consolidated balance sheet and changes to the estimate for expected credit losses are recognized through net investment gains (losses). Loans receivable are reported net of an allowance for expected credit losses of $1 million and $2 million as of March 31, 2022 and December 31, 2021, respectively.

    Fair Value Measurements. The Company’s fixed maturity available for sale securities, equity securities, and its arbitrage trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for similar assets in active markets. Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs may only be used to measure fair value to the extent that observable inputs are not available. The fair value of the vast majority of the Company’s portfolio is based on observable data (other than quoted prices) and, accordingly, is classified as Level 2.

    In classifying particular financial securities in the fair value hierarchy, the Company uses its judgment to determine whether the market for a security is active and whether significant pricing inputs are observable. The Company determines the existence of an active market by assessing whether transactions occur with sufficient frequency and volume to provide reliable pricing information. The Company determines whether inputs are observable based on the use of such information by pricing services and external investment managers, the uninterrupted availability of such inputs, the need to make significant adjustments to such inputs and the volatility of such inputs over time. If the market for a security is determined to be inactive or if significant inputs used to price a security are determined to be unobservable, the security is categorized in Level 3 of the fair value hierarchy.

    Because many fixed maturity securities do not trade on a daily basis, the Company utilizes pricing models and processes which may include benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Market inputs used to evaluate securities include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. Quoted prices are often unavailable for recently issued securities that are infrequently traded or securities that are only traded in private transactions. For publicly traded securities for which quoted prices are unavailable, the Company determines fair value based on independent broker quotations and other observable market data. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial data, projections and business developments of the issuer and other relevant information.

    The following is a summary of pricing sources for the Company's fixed maturity securities available for sale as of March 31, 2022:

($ in thousands)	Carrying Value		Percent of Total
Pricing source:
Independent pricing services	$	16,031,112	98.1	%
Syndicate manager	56,231		0.3
Directly by the Company based on:
Observable data	264,611		1.6
Total	$	16,351,954	100.0	%

    Independent pricing services – Substantially all of the Company’s fixed maturity securities available for sale were priced by independent pricing services (generally one U.S. pricing service plus additional pricing services with respect to a limited number of foreign securities held by the Company). The prices provided by the independent pricing services are generally based on observable market data in active markets (e.g., broker quotes and prices observed for comparable securities). The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness based upon current trading levels for similar securities. If the prices appear unusual to the Company, they are re-examined and the value is either confirmed or revised. In addition, the Company periodically performs independent price tests of a sample of securities to ensure proper valuation and to verify our understanding of how securities are priced. As of March 31, 2022, the Company did not make any

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adjustments to the prices provided by the pricing services. Based upon the Company’s review of the methodologies used by the independent pricing services, these securities were classified as Level 2.

    Syndicate manager – The Company has a 15% participation in a Lloyd’s syndicate, and the Company’s share of the securities owned by the syndicate is priced by the syndicate’s manager. The majority of the securities are liquid, short duration fixed maturity securities. The Company reviews the syndicate manager’s pricing methodology and audited financial statements and holds discussions with the syndicate manager as necessary to confirm its understanding and agreement with security prices. Based upon the Company’s review of the methodologies used by the syndicate manager, these securities were classified as Level 2.

    Observable data – If independent pricing is not available, the Company prices the securities directly. Prices are based on observable market data where available, including current trading levels for similar securities and non-binding quotations from brokers. The Company generally requests two or more quotes. If more than one quote is received, the Company sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes obtained from brokers. Since these securities were priced based on observable data, they were classified as Level 2.

    Cash flow model – If the above methodologies are not available, the Company prices securities using a discounted cash flow model based upon assumptions as to prevailing credit spreads, interest rates and interest rate volatility, time to maturity and subordination levels. Discount rates are adjusted to reflect illiquidity where appropriate. These securities were classified as Level 3.

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Results of Operations for the Three Months Ended March 31, 2022 and 2021

Business Segment Results

Following is a summary of gross and net premiums written, net premiums earned, loss ratios (losses and loss expenses incurred expressed as a percentage of net premiums earned), expense ratios (underwriting expenses expressed as a percentage of net premiums earned) and GAAP combined ratios (sum of loss ratio and expense ratio) for each of our business segments for the three months ended March 31, 2022 and 2021. The GAAP combined ratio represents a measure of underwriting profitability, excluding investment income. A GAAP combined ratio in excess of 100 indicates an underwriting loss; a number below 100 indicates an underwriting profit.

($ in thousands)	2022			2021
Insurance:
Gross premiums written	$	2,484,799		$	2,140,013
Net premiums written	2,073,291			1,739,824
Net premiums earned	1,962,835			1,604,979
Loss ratio	59.5		%	61.3		%
Expense ratio	28.1		%	29.3		%
GAAP combined ratio	87.6		%	90.6		%
Reinsurance & Monoline Excess:
Gross premiums written	$	375,038		$	344,699
Net premiums written	339,963			310,214
Net premiums earned	286,252			244,977
Loss ratio	59.9		%	56.5		%
Expense ratio	29.5		%	30.9		%
GAAP combined ratio	89.4		%	87.4		%
Consolidated:
Gross premiums written	$	2,859,837		$	2,484,712
Net premiums written	2,413,254			2,050,038
Net premiums earned	2,249,087			1,849,956
Loss ratio	59.5		%	60.6		%
Expense ratio	28.3		%	29.5		%
GAAP combined ratio	87.8		%	90.1		%

    Net Income to Common Stockholders. The following table presents the Company’s net income to common stockholders and net income per diluted share for the three months ended March 31, 2022 and 2021:

(In thousands, except per share data)	2022		2021
Net income to common stockholders	$	590,638	$	229,525
Weighted average diluted shares	279,157		280,245
Net income per diluted share	$	2.12	$	0.82

    The Company reported net income to common stockholders of $591 million in 2022 compared to $230 million in 2021. The $361 million increase in net income was primarily due to an after-tax increase in net investment gains of $268 million primarily due to sale of a real estate investment in London, an after-tax increase in underwriting income of $74 million mainly due to the growth in premium rates and exposure as well as reductions in loss ratio partly due to lower catastrophe losses and a lower expense ratio driven by net earned premium growth outpacing expense growth, an after-tax increase in net investment income of $12 million primarily due to investment funds, a reduction of $8 million in tax expense due to a change in the effective tax rate, an after-tax reduction on debt extinguishment expense of $3 million for debt redeemed in March 2021, an after-tax increase in profits from non-insurance businesses of $1 million, an after-tax reduction in interest expenses of $1 million due to debt repayments at maturity and refinancings, a less than $1 million after-tax increase of other income and a less than $1 million after-tax increase in insurance service income, partially offset by an after-tax increase in corporate expenses of $7 million mainly due to increased incentive compensation costs and an after-tax decrease in foreign currency gains of $1 million. The number of weighted average diluted shares decreased by 1.1 million for 2022 compared to 2021, mainly reflecting shares repurchased in 2021.

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    Premiums. Gross premiums written were $2,860 million in 2022, an increase of 15% from $2,485 million in 2021. The increase was due to a $345 million increase in the Insurance segment and a $30 million increase in the Reinsurance & Monoline Excess segment. Approximately 82% of premiums expiring in 2022 were renewed, and 81% of premiums expiring in 2021 were renewed.

    Average renewal premium rates for insurance and facultative reinsurance increased 7.2% in 2022 when adjusted for changes in exposures, and increased 8.3% excluding workers' compensation.

    A summary of gross premiums written in 2022 compared with 2021 by line of business within each business segment follows:

•Insurance - gross premiums increased 16% to $2,485 million in 2022 from $2,140 million in 2021. Gross premiums increased $158 million (20%) for other liability, $84 million (17%) for short-tail lines, $51 million (16%) for professional liability, $34 million (13%) for commercial auto and $18 million (6%) for workers' compensation.

•Reinsurance & Monoline Excess - gross premiums increased 9% to $375 million in 2022 from $345 million in 2021. Gross premiums increased $25 million (13%) for casualty reinsurance and $6 million (6%) for monoline excess and decreased by less than $1 million (1%) for property reinsurance.

    Net premiums written were $2,413 million in 2022, an increase of 18% from $2,050 million in 2021 due in part to our decision to retain more business. Ceded reinsurance premiums as a percentage of gross written premiums were 16% in 2022 and 17% in 2021.

    Premiums earned increased 22% to $2,249 million in 2022 from $1,850 million in 2021. Insurance premiums (including the impact of rate changes) are generally earned evenly over the policy term, and accordingly, recent rate increases will be earned over the upcoming quarters. Premiums earned in 2022 are related to business written during both 2022 and 2021. Audit premiums were $70 million in 2022 compared with $35 million in 2021.

    Net Investment Income. Following is a summary of net investment income for the three months ended March 31, 2022 and 2021:

	Amount				Average Annualized Yield
($ in thousands)	2022		2021		2022		2021
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	101,284	$	94,677	2.2	%	2.2	%
Investment funds	52,012		38,935		13.7		11.6
Arbitrage trading account	9,187		19,074		3.1		16.1
Equity securities	10,856		6,180		4.7		4.7
Real estate	2,146		1,161		0.5		0.2
Gross investment income	175,485		160,027		3.0		3.0
Investment expenses	(1,973)		(1,450)		—		—
Total	$	173,512	$	158,577	2.9	%	3.0	%

    Net investment income increased 9% to $174 million in 2022 from $159 million in 2021 due primarily to a $13 million increase in income from investment funds primarily from financial services and real estate funds, a $7 million increase in income from fixed maturity securities mainly driven by increased investment in bonds, a $5 million increase from equity securities and a $1 million increase in real estate, partially offset by a $10 million decrease from the arbitrage trading account and a $1 million increase in investment expenses. The Company maintained the short duration of its fixed maturity security portfolio, thereby reducing the potential impact of mark-to-market on the portfolio and positioning the Company to react quickly to changes in the current interest rate environment. Average invested assets, at cost (including cash and cash equivalents), were $23.7 billion in 2022 and $21.3 billion in 2021.

    Insurance Service Fees. The Company earns fees from an insurance distribution business, a third-party administrator and as a servicing carrier of workers' compensation assigned risk plans for certain states. Insurance service fees increased to $28 million in 2022 from $26 million in 2021, mainly due to the business recovery from the pandemic.

    Net Realized and Unrealized Gains (Losses) on Investments. The Company buys and sells securities and other investment assets on a regular basis in order to maximize its total return on investments. Decisions to sell securities and other investment assets are based on management’s view of the underlying fundamentals of specific investments as well as

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management’s expectations regarding interest rates, credit spreads, currency values and general economic conditions. Net realized and unrealized gains on investments were $370 million in 2022 compared with net gains of $52 million in 2021. The gains of $370 million in 2022 reflected net realized gains on investments of $277 million (primarily a $251 million net gain from the sale of a real estate investment in London after transaction expenses and the foreign currency impact, including the reversal of the currency translation adjustment), and an increase in unrealized gains on equity securities of $93 million. In 2021, the net gains of $52 million reflected net realized gains on investment sales of $76 million (primarily due to the sale of certain real estate assets and the disposition of an investment fund) and an increase in unrealized losses on equity securities of $24 million.

Change in Allowance for Expected Credit Losses on Investments. Based on credit factors, the allowance for expected credit losses is increased or decreased depending on the percentage of unrealized loss relative to amortized cost by security, changes in rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. For the three months ended March 31, 2022, the pre-tax change in allowance for expected credit losses on investments increased by $4 million ($3 million after-tax), which is reflected in net investment gains (losses), primarily due to change in estimate. For the three months ended March 31, 2021, the pre-tax change in allowance for expected credit losses on investments decreased by $17 million ($13 million after-tax), which is reflected in net investment gains (losses), primarily related to foreign government securities which did not previously have an allowance.

Revenues from Non-Insurance Businesses. Revenues from non-insurance businesses were derived from businesses engaged in the distribution of promotional merchandise, world-wide textile solutions and aviation-related businesses that provide services to aviation markets, including (i) the distribution, manufacturing, repair and overhaul of aircraft parts and components, (ii) the sale of new and used aircraft, and (iii) avionics, fuel, maintenance, storage and charter services. Revenues from non-insurance businesses were $98 million in 2022 and $87 million in 2021. The increase mainly relates to the business recovery from COVID-19 on promotional merchandise and textile businesses.

    Losses and Loss Expenses. Losses and loss expenses increased to $1,339 million in 2022 from $1,122 million in 2021. The consolidated loss ratio was 59.5% in 2022 and 60.6% in 2021. Catastrophe losses, net of reinsurance recoveries, were $29 million (including current accident year losses of approximately $1 million related to COVID-19) in 2022 and $36 million (including losses of approximately $15 million related to COVID-19) in 2021. Favorable prior year reserve development (net of premium offsets) was $1 million in 2022 and $3 million in 2021. The loss ratio excluding catastrophe losses and prior year reserve development was 58.3% in 2022 and 58.9% in 2021.

    A summary of loss ratios in 2022 compared with 2021 by business segment follows:

•Insurance - The loss ratio was 59.5% in 2022 and 61.3% in 2021. Catastrophe losses were $11 million in 2022 compared with $33 million in 2021. The Company reflected a best estimate (net of reinsurance) based upon available information for current accident year COVID-19-related losses of approximately $1 million. Favorable prior year reserve development was $6 million in both 2022 and 2021. The loss ratio excluding catastrophe losses and prior year reserve development was 59.3% in 2022 and 59.7% in 2021.

•Reinsurance & Monoline Excess - The loss ratio was 59.9% in 2022 and 56.5% in 2021. Catastrophe losses were $18 million in 2022 compared with $3 million in 2021. Adverse prior year reserve development was $5 million in 2022 and $3 million in 2021. The loss ratio excluding catastrophe losses and prior year reserve development decreased 2.6 points to 51.7% in 2022 from 54.3% in 2021.

Other Operating Costs and Expenses. Following is a summary of other operating costs and expenses:

($ in thousands)	2022		2021
Policy acquisition and insurance operating expenses	$	635,453	$	545,750
Insurance service expenses	22,466		20,786
Net foreign currency gains	(4,168)		(5,594)
Debt extinguishment costs	—		3,617
Other costs and expenses	60,148		51,709
Total	$	713,899	$	616,268

    Policy acquisition and insurance operating expenses are comprised of commissions paid to agents and brokers, premium taxes and other assessments and internal underwriting costs. Policy acquisition and insurance operating expenses increased 16% and net premiums earned increased 22% from 2021. The expense ratio (underwriting expenses expressed as a percentage of net premiums earned) was 28.3% in 2022 and 29.5% in 2021. The improvement is primarily attributable to higher net premiums earned outpacing compensation expense growth. However, to the extent our net premiums earned decrease or

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travel and entertainment expenses increase, due to the impact of the COVID-19 pandemic or otherwise, our expense ratio would be expected to increase.

    Service expenses, which represent the costs associated with the fee-based businesses, were $22 million in 2022 and $21 million in 2021.

    Net foreign currency gains result from transactions denominated in a currency other than a company's operating functional currency. Net foreign currency gains were $4 million in 2022 compared to $6 million in 2021. The reduction in gains is primarily related to less strengthening of U.S. dollar compared to the Argentine peso and U.K. sterling in 2022 versus 2021.

Debt extinguishment costs of $4 million in 2021 related to the redemption of subordinated debentures that were due in 2056.

    Other costs and expenses represent general and administrative expenses of the parent company and other expenses not allocated to business segments, including the cost of certain long-term incentive plans and new business ventures. Other costs and expenses increased to $60 million in 2022 from $52 million in 2021, primarily due to the increase in performance-based compensation costs in 2022.

    Expenses from Non-Insurance Businesses. Expenses from non-insurance businesses represent costs associated with businesses engaged in the distribution of promotional merchandise, world-wide textile solutions and aviation-related businesses that include (i) cost of goods sold related to aircraft and products sold and services provided, and (ii) general and administrative expenses. Expenses from non-insurance businesses were $95 million in 2022 compared to $86 million in 2021. The increase mainly relates to the business recovery from COVID-19 on promotional merchandise and textile businesses.

Interest Expense. Interest expense was $35 million in 2022 and $37 million in 2021. In March 2021, the Company issued $400 million aggregate principal amount of 3.55% senior notes due 2052 and redeemed its $110 million aggregate principal amount of 5.90% subordinated debentures due 2056. In June 2021, the Company redeemed the $290 million aggregate principal amount of its 5.75% subordinated debentures due 2056. In September 2021, the Company issued $350 million aggregate principal amount of 3.15% senior notes due 2061.

In the first quarter of 2022, the Company repaid at maturity its $77 million aggregate principal amount of 8.7% senior notes in January and its $350 million aggregate principal amount of 4.625% senior notes in March. The above redemptions during the three months ended March 31, 2021 resulted in debt extinguishment costs of $4 million. Additionally, in the second quarter of 2021, the Company sold a real estate asset, which resulted in a $102 million reduction of the Company's non-recourse debt that was supporting the property.

The maturity and redemption of senior notes and debentures and issuance of additional senior notes and debentures in 2022 and 2021 are expected to decrease interest expense in 2022 and forward.

Income Taxes. The effective income tax rate was 19.0% and 21.7% for the three months ended March 31, 2022 and 2021, respectively. The lower effective income tax rate for the three months ended March 31, 2022, compared to the year earlier period, was primarily due to a net reduction to the Company’s valuation allowance against foreign tax credits and foreign net operating losses.

    The Company has not provided U.S. deferred income taxes on the undistributed earnings of approximately $120.6 million of its non-U.S. subsidiaries since these earnings are intended to be permanently reinvested in the non-U.S. subsidiaries. In the future, if such earnings were distributed the Company projects that the incremental tax, if any, will be immaterial.

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Investments

    As part of its investment strategy, the Company establishes a level of cash and highly liquid short-term and intermediate-term securities that, combined with expected cash flow, it believes is adequate to meet its payment obligations. Due to the low fixed maturity investment returns, the Company invests in equity securities, merger arbitrage securities, investment funds, private equity, loans and real estate related assets. The Company's investments in investment funds and its other alternative investments have experienced, and the Company expects to continue to experience, greater fluctuations in investment income.

    The Company also attempts to maintain an appropriate relationship between the average duration of the investment portfolio and the approximate duration of its liabilities (i.e., policy claims and debt obligations). The average duration of the fixed maturity portfolio, including cash and cash equivalents, was 2.4 years at both March 31, 2022 and December 31, 2021. The Company’s fixed maturity investment portfolio and investment-related assets as of March 31, 2022 were as follows:

($ in thousands)	Carrying Value		Percent of Total
Fixed maturity securities:
U.S. government and government agencies	$	818,848	3.5	%
State and municipal:
Special revenue	1,935,528		8.2
State general obligation	424,590		1.8
Local general obligation	416,167		1.8
Pre-refunded (1)	177,371		0.8
Corporate backed	172,005		0.7
Total state and municipal	3,125,661		13.3
Mortgage-backed:
Agency	874,067		3.7
Commercial	263,501		1.1
Residential-Prime	246,852		1.0
Residential-Alt A	4,771		—
Total mortgage-backed	1,389,191		5.8
Asset-backed	4,257,421		18.0
Corporate:
Industrial	3,270,804		13.8
Financial	1,706,732		7.2
Utilities	409,726		1.7
Other	201,245		0.9
Total corporate	5,588,507		23.6
Foreign government and foreign government agencies	1,246,568		5.3
Total fixed maturity securities	16,426,196		69.5
Equity securities:
Common stocks	883,317		3.7
Preferred stocks	243,174		1.0
Total equity securities	1,126,491		4.7
Cash and cash equivalents (2)	1,980,346		8.4
Investment funds	1,544,856		6.5
Real estate	1,276,157		5.4
Arbitrage trading account	1,188,910		5.0
Loans receivable	115,097		0.5
Total investments	$	23,658,053	100.0	%

____________________

(1) Pre-refunded securities are securities for which an escrow account has been established to fund the remaining payments of principal and interest through maturity. Such escrow accounts are funded almost exclusively with U.S. Treasury and U.S. government agency securities.

(2) Cash and cash equivalents includes trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.

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Fixed Maturity Securities. The Company’s investment policy with respect to fixed maturity securities is generally to purchase instruments with the expectation of holding them to their maturity. However, management of the available for sale portfolio is considered necessary to maintain an approximate matching of assets and liabilities as well as to adjust the portfolio as a result of changes in financial market conditions and tax considerations.

The Company’s philosophy related to holding or selling fixed maturity securities is based on its objective of maximizing total return. The key factors that management considers in its investment decisions as to whether to hold or sell fixed maturity securities are its view of the underlying fundamentals of specific securities as well as its expectations regarding interest rates, credit spreads and currency values. In a period in which management expects interest rates to rise, the Company may sell longer duration securities in order to mitigate the impact of an interest rate rise on the fair value of the portfolio. Similarly, in a period in which management expects credit spreads to widen, the Company may sell lower quality securities, and in a period in which management expects certain foreign currencies to decline in value, the Company may sell securities denominated in those foreign currencies. The sale of fixed maturity securities in order to achieve the objective of maximizing total return may result in realized gains; however, there is no reason to expect these gains to continue in future periods.

Equity Securities. Equity securities primarily represent investments in common and preferred stocks in companies with potential growth opportunities in different sectors, mainly in the financial institutions and energy sectors.

Investment Funds. At March 31, 2022, the carrying value of investment funds was $1,546 million, including investments in financial services funds of $455 million, transportation funds of $341 million, real estate funds of $284 million, other funds of $330 million (which includes a deferred compensation trust asset of $32 million) and energy funds of $136 million. Investment funds are generally reported on a one-quarter lag.

Real Estate. Real estate is directly owned property held for investment. At March 31, 2022, real estate properties in operation included a long-term ground lease in Washington D.C., an office complex in New York City and the completed portion of a mixed-use project in Washington D.C. In addition, part of the previously mentioned mixed-use project in Washington D.C. is under development. The Company expects to fund further development costs for the project with a combination of its own funds and external financing. As described above, during the first quarter of 2022, the Company sold an office building in London.

Arbitrage Trading Account. The arbitrage trading account is comprised of direct investments in arbitrage securities. Merger arbitrage is the business of investing in the securities of publicly held companies that are the targets in announced tender offers and mergers.

Loans Receivable. Loans receivable, which are carried at amortized cost (net of allowance for expected credit losses), had an amortized cost of $115 million and an aggregate fair value of $116 million at March 31, 2022. The amortized cost of loans receivable is net of an allowance for expected credit losses of $1 million as of March 31, 2022. Loans receivable include real estate loans of $89 million that are secured by commercial and residential real estate located primarily in New York. Real estate loans generally earn interest at fixed or stepped interest rates and have maturities through 2026. Loans receivable include commercial loans of $26 million that are secured by business assets and have fixed interest rates with varying maturities not exceeding 10 years.

Market Risk. The fair value of the Company’s investments is subject to risks of fluctuations in credit quality and interest rates. The Company uses various models and stress test scenarios to monitor and manage interest rate risk. The Company attempts to manage its interest rate risk by maintaining an appropriate relationship between the effective duration of the investment portfolio and the approximate duration of its liabilities (i.e., policy claims and debt obligations). The effective duration for the fixed maturity portfolio (including cash and cash equivalents) was 2.4 years at both March 31, 2022 and December 31, 2021.

In addition, the fair value of the Company’s international investments is subject to currency risk. The Company attempts to manage its currency risk by matching its foreign currency assets and liabilities where considered appropriate.

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Liquidity and Capital Resources

    Cash Flow. Cash flow provided from operating activities increased to $478 million in the first three months of 2022 from $311 million in the first three months of 2021, primarily due to an increase in premium receipts partially offset by higher loss and loss expense payments.

    The Company's insurance subsidiaries' principal sources of cash are premiums, investment income, service fees and proceeds from sales and maturities of portfolio investments. The principal uses of cash are payments for claims, taxes, operating expenses and dividends. The Company expects its insurance subsidiaries to fund the payment of losses with cash received from premiums, investment income and fees. The Company generally targets an average duration for its investment portfolio that is within 1.5 years of the average duration of its liabilities so that portions of its investment portfolio mature throughout the claim cycle and are available for the payment of claims if necessary. In the event operating cash flow and proceeds from maturities and prepayments of fixed income securities are not sufficient to fund claim payments and other cash requirements, the remainder of the Company's cash and investments is available to pay claims and other obligations as they become due. The Company's investment portfolio is highly liquid, with approximately 77.9% invested in cash, cash equivalents and marketable fixed maturity securities as of March 31, 2022. If the sale of fixed maturity securities were to become necessary, a realized gain or loss equal to the difference between the cost and sales price of securities sold would be recognized.

    Debt. At March 31, 2022, the Company had senior notes, subordinated debentures and other debt outstanding with a carrying value of $2,842 million and a face amount of $2,867 million. In the first quarter 2022, the Company repaid at maturity its $77 million aggregate principal amount of 8.7% senior notes in January and its $350 million aggregate principal amount of 4.625% senior notes in March. The maturities of the outstanding debt are $7 million in 2024, $5 million in 2025, $250 million in 2037, $350 million in 2044, $470 million in 2050, $400 million in 2052, $185 million in 2058, $300 million in 2059, $250 million in 2060, and $650 million in 2061.

On April 1, 2022, the Company entered into a senior unsecured revolving credit facility that provides for revolving, unsecured borrowings up to an aggregate of $300 million with a $50 million sublimit for letters of credit. The Company may increase the amount available under the facility to a maximum of $500 million subject to obtaining lender commitments for the increase and other customary conditions. Borrowings under the facility may be used for working capital and other general corporate purposes. All borrowings under the facility must be repaid by April 1, 2027, except that letters of credit outstanding on that date may remain outstanding until April 1, 2028 (or such later date approved by all lenders). Our ability to utilize the facility is conditioned on the satisfaction of representations, warranties and covenants that are customary for facilities of this type. As of the date of this report, there were no borrowings outstanding under the facility.

    Equity. At March 31, 2022, total common stockholders’ equity was $6.9 billion, common shares outstanding were 265,186,251 and stockholders’ equity per outstanding share was $25.89. During the three months ended March 31, 2022, the Company did not repurchase any shares of its common stock. In the first quarter of 2022, the board of directors of the Company declared a regular quarterly cash dividend of $0.09 cents per share. The number of common shares outstanding excludes shares held in a grantor trust established by the Company for delivery upon settlement of vested but mandatorily deferred RSUs.

    Total Capital. Total capitalization (equity, debt and subordinated debentures) was $9.7 billion at March 31, 2022. The percentage of the Company’s capital attributable to senior notes, subordinated debentures and other debt was 29% at March 31, 2022, down from 33% at December 31, 2021.

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Item 3.     Quantitative and Qualitative Disclosure About Market Risk

    Reference is made to the information under “Investments - Market Risk” under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Form 10-Q.

Item 4.     Controls and Procedures

    Disclosure Controls and Procedures. The Company’s management, including its Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of the effectiveness of the Company’s disclosure controls and procedures pursuant to Securities Exchange Act Rule 13a-14 as of the end of the period covered by this quarterly report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company has in place effective controls and procedures designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Securities Exchange Act of 1934, as amended, and the rules thereunder, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

    Changes in Internal Control over Financial Reporting. During the quarter ended March 31, 2022, there were no changes in the Company’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

    Please see Note 20 to the notes to the interim consolidated financial statements.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds    

    The Company did not repurchase any of its shares during the three months ended March 31, 2022, and accordingly the number of shares authorized for purchase by the Company remains 15,000,000.

Item 6. Exhibits

Number
(10.1)	Form of 2022 Performance Unit Award Agreement under the W. R. Berkley Corporation 2019 Long-Term Incentive Plan.
(31.1)	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a)/ 15d-14(a).
(31.2)	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a)/ 15d-14(a).
(32.1)	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

		W. R. BERKLEY CORPORATION
Date:	May 3, 2022	/s/ W. Robert Berkley, Jr.
		W. Robert Berkley, Jr.
		President and Chief Executive Officer
Date:	May 3, 2022	/s/ Richard M. Baio
		Richard M. Baio
		Executive Vice President - Chief Financial Officer

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EX-10.1

2022 Performance Unit Award Agreement
Under the W. R. Berkley Corporation 2019 Long-Term Incentive Plan

This 2022 Performance Unit Award Agreement (this “Agreement”), effective January 1, 2022, represents an Award of Performance Units by W. R. Berkley Corporation (the “Company”), to the Participant named below, pursuant to the provisions of the W. R. Berkley Corporation 2019 Long-Term Incentive Plan (as may be amended from time to time, the “Plan”). The value of the Performance Units will be determined based on the increase in the Company’s Book Value Per Share during the Performance Period, as determined below.

    Important jurisdiction-specific modifications to this Agreement are contained in Exhibit A hereto and are binding and incorporated herein. If there is any inconsistency between this Agreement and Exhibit A, Exhibit A shall govern.

The Plan, together with this Agreement and Exhibit A, provide a complete description of the terms and conditions governing the Award and the Performance Units, and constitute the entire agreement by and between the parties hereto with respect to the subject matter hereof, superseding all prior agreements, correspondence and understandings and all prior and contemporaneous oral agreements and understandings, among the parties with regard to that subject matter. If there is any inconsistency between the terms of this Agreement and/or of Exhibit A, on the one hand, and the terms of the Plan, on the other hand, the Plan’s terms shall completely supersede and replace the conflicting terms of this Agreement and of Exhibit A. All capitalized terms in this Agreement shall have the meanings ascribed to them in the Plan, unless specifically set forth otherwise herein.

The parties hereto agree as follows:

1.    General Grant Information. The individual named below has been selected to be a Participant in the Plan and receive a grant of Performance Units, as specified below:

    (a) Participant:

    (b) Number of Performance Units Granted:

    (c) Initial Value of Performance Units: $0.00

    (d) Date of Grant: January 1, 2022

    (e) Performance Measure: Increase in Book Value Per Share, as set forth in Section 3 below.

2.    Performance Period. The Performance Period commences on January 1, 2022, and ends on December 31, 2026; provided, however, that, in the event that the Participant dies or experiences a Qualifying Termination, the Performance Period for such Participant shall be deemed to end on December 31 of the fiscal year immediately prior to the fiscal year in which such death or Qualifying Termination occurred.

3.    Value of a Performance Unit. Each Performance Unit shall have a value determined by multiplying the Increase in Book Value Per Share by three and one hundred ninety-three

thousandths (3.193), subject to a maximum value of one hundred dollars ($100.00) per Performance Unit.

4.    Eligibility for Payment of Performance Units. The Participant shall only be eligible for payment of the value of Performance Units granted under this Agreement if (a) the Participant’s employment with the Company, or the applicable Subsidiary or Affiliate, continues through the end of the Performance Period; (b) the Participant has complied with the Obligations as set forth in Section 5(d) at all times up to and including the Settlement Date; and (c) the Participant has not committed Misconduct at any time up to and including the Settlement Date.

5.    Payout on Performance Units. (a) Except as set forth in Sections 5(b) or 8 below, the aggregate positive value, if any, of the Performance Units, based on the value of the Performance Units on the last day of the Performance Period as determined in accordance with this Agreement and subject to the maximum value set forth in Section 3 hereof, shall be paid to the Participant in cash following the last day of the Performance Period but in no event later than March 31, 2027 (also referred to as the Settlement Date).

    (b)    In the event of the death or Qualifying Termination of the Participant, payment of the value, if any, of the Performance Units in accordance with the terms of this Agreement shall extinguish the Company’s obligation hereunder, and the Participant shall not be entitled to any further payment or appreciation in the value of the Performance Units. In the event such payment is made due to the Participant’s death, such payment shall be made to the Participant’s beneficiary (or the Participant’s estate if no beneficiary has been chosen or if such beneficiary has predeceased the Participant). Any payment upon death or any Qualifying Termination shall be made within ninety (90) calendar days following such death or Qualifying Termination; provided, however, that if such ninety (90) day period spans two separate taxable years, such payment shall be made in the later taxable year; provided further, however, that any payment hereunder (calculated as of the end of the fiscal year immediately prior to the fiscal year in which such Qualifying Termination occurred) upon a Qualifying Termination shall be delayed until the earlier of (x) March 31, 2027 and (y) such time as the Participant has also undergone a “separation from service” as defined in Treas. Reg. 1.409A-1(h), at which time such payment shall be made to the Participant according to the schedule set forth in this Section 5(b) as if the Participant had undergone such Qualifying Termination (under the same circumstances), solely for the purpose of the date of payment, on the date of such “separation from service.” Notwithstanding anything herein to the contrary, to the extent the Participant is a “specified employee” as defined in Treas. Reg. 1.409A-1(i), any payment to be made upon the Participant’s “separation from service” shall be delayed until and made upon the earlier of (i) the six (6) month anniversary of the Participant’s “separation from service” and (ii) the Participant’s death.

    (c)    Once a payment is made pursuant to Section 5(a) or (b) above or Section 8 below, the Company shall have no further obligation to make any payment hereunder.

    (d)    If at any time up to or including the last day of the Relevant Period, the Participant breaches one or more of Participant’s Obligations, or agrees to enter into, or has entered into, an agreement (written, oral or otherwise) to breach one or more of Participant’s Obligations, or engages in Misconduct, then (a) the Participant shall immediately forfeit all of the Performance Units that have been awarded to the Participant under this Agreement but have not been paid to him/her, and the Participant shall have no further rights with respect to such Performance Units; and (b) the Participant shall repay to the Company, upon its demand, an amount equal to the total amount that has already been paid to the Participant in respect of Performance Units awarded under this Agreement. The determination whether the Participant has breached one or more of Participant’s Obligations or has engaged in Misconduct shall be

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made by the Committee in its sole and absolute discretion. The Committee has sole and absolute discretion to determine whether, notwithstanding its determination that the Participant has breached one or more of Participant’s Obligations or has engaged in Misconduct, recapture or forfeiture as provided herein shall not occur. The Committee’s exercise or nonexercise of such discretion with respect to any particular event or occurrence by or with respect to the Participant or any other recipient of Performance Units under the Plan shall not in any way reduce or eliminate the authority of the Committee to (i) determine that any event or occurrence by or with respect to the Participant constitutes breaching one or more of Participant’s Obligations or engaging in Misconduct, or (ii) determine the related date of breach of the Participant’s Obligations or of Misconduct. The Participant acknowledges that the terms set forth herein with respect to breaching one or more of Participant’s Obligations, in view of the nature of the business in which the Company is engaged, is reasonable in scope (as to both the temporal and geographical limits) and necessary in order to protect the legitimate business interests of the Company. The Participant acknowledges further that breaching one or more of Participant’s Obligations or engaging in Misconduct would result in irreparable injuries to the Company and would cause loss in an amount that cannot be readily quantified. The Participant further acknowledges that repayment to the Company pursuant to this provision does not, and is not intended to, constitute actual or liquidated damages.

    (e)    The Participant’s employment per Section 4(a) will not be considered to continue if his or her employment has been terminated (regardless of the reason for such termination, regardless whether the termination was at Participant’s or Participant’s employer’s prompting, and regardless whether the termination is found to be invalid or in breach of applicable employment law or of the terms of the Participant’s employment agreement, if any), and unless otherwise expressly provided in this Agreement or determined by the Committee, the Participant’s eligibility for payment of the Performance Units awarded hereunder, if any, will terminate as of such date and will not be extended by any notice period arising under law or contract. Further, the Participant’s period of employment would not include any contractual notice period (except for such period of time, as determined in the Committee’s sole and absolute discretion, that the Participant is actively providing substantial services as required by the Participant’s employer during any notice period) or any period of “garden leave” or similar period arising under applicable employment laws or the terms of Participant’s employment agreement, if any.

6.    Nontransferability. The Performance Units granted hereunder may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, except as otherwise expressly provided for in this Agreement and/or the Plan.

7.    Administration. This Agreement and the rights of the Participant hereunder are subject to all the terms and conditions of the Plan, as the same may be amended from time to time, as well as to such rules and regulations as the Committee may adopt for administration of the Plan. It is expressly understood that the Committee is authorized to administer, construe, and make all determinations necessary or appropriate to the administration of the Plan and this Agreement, all of which shall be final and binding upon the Participant, including without limitation any determination concerning a breach of an Obligation or an instance of Misconduct. As additional consideration for the Award of Performance Units made pursuant to this Agreement, the parties agree that the definition of “Obligations” as set forth in Section 9(j) of this Agreement shall supersede, replace and be substituted for the definition of “Obligations” in Section 9(j) of the 2021 Performance Unit Award Agreement between Participant and the Company in order to correct a scrivener’s error.

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8.    Change in Control. In the event of a Change in Control, unless otherwise specifically prohibited under applicable law or by the rules and regulations of any governmental agencies or national securities exchanges:

    (a)    With respect to each outstanding Performance Unit that is assumed or substituted in connection with a Change in Control, in the event that the Participant’s employment with the Company or, as applicable, its Subsidiary or Affiliate, is terminated (i) by the Company or such Subsidiary or Affiliate without Cause or (ii) by the Participant for Good Reason, in each case during the eighteen (18) month period following such Change in Control, the value of all Performance Units shall be determined and fixed as of the end of the fiscal year immediately preceding the fiscal year in which such termination occurs, and such value shall be paid to the Participant in accordance with, and subject to, the provisions of Sections 4 and 5 hereof. Following such termination, Performance Units shall not accrue any additional value for the fiscal year in which such termination occurs or for any subsequent fiscal years.

    (b)    With respect to each outstanding Performance Unit that is not assumed or substituted in connection with a Change in Control, immediately upon the occurrence of the Change in Control, which shall be deemed the end of the Performance Period, the value of all Performance Units shall be determined and fixed as of the end of the fiscal year immediately preceding the fiscal year in which such Change in Control occurs, and such value shall be paid to the Participant within ninety (90) calendar days following the date of such Change in Control; provided, however, that if such ninety (90) day period spans two separate taxable years, such payment shall be made in the later taxable year. Following such Change in Control, Performance Units shall not accrue any additional value for the fiscal year in which such Change in Control occurs or for any subsequent fiscal years.

    (c)    For purposes of this Section 8, a Performance Unit shall be considered assumed or substituted for if, following the Change in Control, the Performance Unit is assumed or substituted for with one of comparable value and remains subject to the same terms and conditions that were applicable to the Performance Units immediately prior to the Change in Control.

    (d)    For purposes of this Section 8, an event shall only constitute a Change in Control if the event constituting a Change in Control also constitutes “a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company” within the meaning of Section 409A(a)(2)(A)(v) of the Code and the regulations promulgated thereunder.

9.    Miscellaneous.

    (a)    This Agreement shall not confer upon the Participant any right to continuation of employment by the Company or any of its Subsidiaries or Affiliates, nor shall this Agreement interfere in any way with the Company’s or any Subsidiary’s or Affiliate’s right to terminate the Participant’s employment at any time.

    (b)    The Committee may terminate, amend, or modify the Plan; provided, however, that no such termination, amendment, or modification of the Plan may in any material way adversely affect the Participant’s rights under this Agreement.

    (c)    The Company or, as applicable, the Subsidiary or Affiliate whose employment of the Participant gives rise the Participant’s participation in the Plan, shall have the

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authority to deduct or withhold from any payment hereunder or from any other source of the Participant’s compensation, or may require the Participant to remit to the Company or such Subsidiary or Affiliate, before payment hereunder, an amount sufficient to satisfy federal, state, and local taxes (including Participant’s FICA obligation) required by law to be withheld with respect to any taxable event arising out of this Agreement.

    (d)    This Agreement shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

    (e)    To the extent not preempted by federal law, this Agreement shall be governed by, interpreted and construed in accordance with, the laws of the State of Delaware, regardless of its conflicts of laws principles. The jurisdiction and venue for any dispute arising under, or any action brought to enforce or otherwise relating to, this Agreement will be exclusively in the courts of the State of Delaware, including the federal courts located in Delaware in the event federal jurisdiction exists. Participant hereby irrevocably consents to the exclusive personal jurisdiction and venue of the federal and state courts of the State of Delaware for the resolution of any disputes arising out of, or relating to, this Agreement and irrevocably waives any claim or argument that the courts of the State of Delaware are an inconvenient forum. In any action arising under or relating to this Agreement, the court shall not have the authority to, and shall not, conduct a de novo review of any determination made by the Committee or the Company but is instead authorized to determine solely whether the determination was the result of fraud or bad faith under Delaware law.

    (f)    All obligations of the Company under the Plan and this Agreement with respect to the Performance Units shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

    (g)    The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision or provisions of this Agreement, which shall remain in full force and effect. If any provision of this Agreement is held to be invalid, void or unenforceable in any jurisdiction, the court shall substitute a valid, enforceable provision that preserves, to the maximum lawful extent, the terms and intent of the invalid, void, or unenforceable provision, and shall modify the Agreement so that the scope of the provision is reduced only to the minimum extent necessary to cause the modified provision to be valid, legal and enforceable. Such substitution or modification shall not affect the remainder of the provisions or their enforceability, including in jurisdictions other than the one of the court making the substitution or modification, or as to other participants in the Plan or other agreements under the Plan.

    (h)    By accepting an Award or any other benefit under the Plan, the Participant and each person claiming under or through the Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, any action taken under the Plan by the Company, the Board or the Committee.

    (i)    TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTICIPANT, EVERY PERSON CLAIMING UNDER OR THROUGH THE PARTICIPANT, AND THE COMPANY HEREBY WAIVE AND RELEASE ANY CLAIM UNDER FEDERAL, STATE OR LOCAL LAW THEY HAVE OR MAY HAVE TO A JURY TRIAL WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER, OR IN CONNECTION WITH THE PLAN OR THIS AGREEMENT OR

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ANY ACTIONS TAKEN OR DETERMINATIONS MADE UNDER THE PLAN OR THIS AGREEMENT.

    (j)    Definitions. The following terms shall have the meanings ascribed to them when used in this Agreement:

        (i)    “Beginning Book Value Per Share” means $39.05.

(ii)    “Book Value Per Share” as of the end of any fiscal year shall be equal to the quotient of X divided by Z, where X is equal to the sum of A, B, C, D and E minus the sum of F, G and H, and Z is equal to the sum of W plus Y: [((A+B+C+D+E)-(F+G+H)) ÷ (W+Y)]. For purposes of this calculation,

(A) shall be equal to the Company’s total common stockholders’ equity as of the end of such fiscal year, as determined in accordance with generally accepted accounting principles and reported in the Company’s audited financial statements,

(B) shall be equal to the cumulative after-tax expense of the Company from January 1, 2022 through the end of such fiscal year arising from all the Awards made under the Plan,

(C) shall be equal to the cumulative cash dividends on the Company’s common stock declared from January 1, 2022 through the end of such fiscal year,

(D) shall be equal to the cumulative cost of the Company’s common stock repurchased by the Company from January 1, 2022 through the end of such fiscal year,

(E) shall represent imputed interest on the cost of the Company’s common stock repurchased by the Company and the amount of special dividends (any dividend other than the regular quarterly cash dividend) paid by the Company during the Performance Period. Such interest shall be imputed on such repurchases and special dividends from the first day of the quarter following such repurchases and special dividends to the end of the Performance Period. The imputed interest rate shall be equal to the average annual Increase in Book Value Per Share for the Performance Period, before consideration of this subsection E,

(F) shall be equal to the Company’s accumulated other comprehensive income as of the end of such fiscal year,

(G) shall be equal to the cumulative unrealized gains and losses, net of tax, on equity securities (other than securities of consolidated subsidiaries or securities accounted for on the equity method) reported in retained earnings at the end of such fiscal year as a result of Accounting Standards Update 2016-01,

(H) shall be equal to the cumulative allowance for credit losses, net of tax, on applicable assets reported in retained earnings at the end of such fiscal year as a result of Accounting Standards Update 2016-13,

(W) shall be equal to the number of shares of the Company’s common stock issued and outstanding, net of treasury shares, as of the end of such fiscal year, and

(Y) shall be the cumulative number of shares of the Company’s common stock repurchased by the Company from January 1, 2022 through the end of such fiscal year.

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Book Value Per Share shall be calculated without taking into account any forward or reverse split of the Company’s common stock or any stock dividend declared on the Company’s common stock and there shall be no adjustment to the number of Performance Units awarded hereunder in either event. Notwithstanding anything herein to the contrary the formula to determine Book Value Per Share may be further modified to take into account any factor set forth in Section 7.2 of the Plan.

        (iii)    “Cause” means “Cause” as defined in any active employment agreement between the Participant and the Company or any Subsidiary or Affiliate, as applicable, or, in the absence of any such definition, means the occurrence of any one of the following events, in each case as determined in the Committee’s sole and absolute discretion: (A) fraud, personal dishonesty, embezzlement or acts of gross negligence or gross misconduct on the part of the Participant in the course of his or her employment or services, (B) the Participant’s engagement in conduct that is materially injurious to the Company, a Subsidiary or an Affiliate, (C) the Participant’s conviction by a court of competent jurisdiction of, or pleading “guilty” or “no contest” to, (x) a felony or (y) any other criminal charge (other than minor traffic violations) which could reasonably be expected to have a material adverse impact on the Company’s or a Subsidiary’s or an Affiliate’s reputation or business; (D) public or consistent drunkenness by the Participant or his or her illegal use of narcotics which is, or could reasonably be expected to become, materially injurious to the reputation or business of the Company, a Subsidiary or an Affiliate or which impairs, or could reasonably be expected to impair, the performance of the Participant’s duties to the Company, a Subsidiary or an Affiliate; (E) willful failure by the Participant to follow the lawful directions of a superior officer; or (F) the Participant’s continued and material failure to fulfill his or her employment obligations to the Company or any Subsidiary or Affiliate.

(iv) “Client” means any insured, agent, broker, producer or other intermediary to or through whom the Company or any Subsidiaries or Affiliates provides insurance or reinsurance or related services.

(v) “Confidential Information” means an item of information or a compilation of information, in any form (tangible or intangible), related to the business of the Company or of a Subsidiary or Affiliate that the Company or such Subsidiary or Affiliate has not made known to the general public or authorized disclosure to the general public, and that is not generally known to the public through proper means, including but not limited to:

(A)underwriting premiums or quotes, pricing models and formulas, income and receipts, claims records and levels, renewals, policy wording and terms, reinsurance quotas, and profit commission;

(B)operating unit or other business projections and forecasts;

(C)Client lists, brokers lists and price-sensitive information;

(D)technical information, including computer programs, reports, interpretations, forecasts, corporate and business plans and accounts, business methods, financial details, projections and targets;

(E)remuneration and confidential personnel details concerning other employees or contractors of the Company or any Subsidiary or Affiliate;

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(F)planned products, planned services, marketing surveys, research reports, market share and pricing statistics, budgets, and fee levels;

(G)computer passwords, the contents of any databases, tables, internal templates, know–how, and training documents or materials;

(H)commissions, commission charges, pricing policies and all information about research and development; and

(I)the Company’s, and its Subsidiaries’ and Affiliates’, Clients’ or Prospective Clients’ names, addresses (including email addresses), telephone, facsimile or other contact numbers and contact names, the nature of such Clients’ or Prospective Clients’ business operations, such Clients’ or Prospective Clients’ requirements for services supplied by the Company or its Subsidiaries and Affiliates, and all confidential aspects of such Clients’ or Prospective Clients’ relationships with the Company and its Subsidiaries and Affiliates.

Participant acknowledges that in the course of performing services for the Company and/or its Subsidiaries and Affiliates, the Participant has had and will have access to Confidential Information.

(vi) “Covered Business Partner” means any person, concern or entity (including, without limitation, any Client) as to which Participant, or persons supervised by Participant, had business-related contact or received or learned Confidential Information during the most recent two years of Participant’s employment with the Company or its Subsidiaries or Affiliates or such shorter period of time as employed (the “Look Back Period”).

(vii)    “Disability” means the inability of the Participant to continue to perform services for the Company or any Subsidiary or Affiliate, as applicable, on account of his or her total and permanent disability as determined by the Committee in its sole and absolute discretion.

        (viii)    “Ending Book Value Per Share” means the highest Book Value Per Share determined as of the end of each fiscal year in the Performance Period.

        (ix)    “Good Reason” means “Good Reason” as defined in any active employment agreement between the Participant and the Company or any Subsidiary or Affiliate, as applicable, or, in the absence of any such definition, means the occurrence of any one of the following events (unless the Participant agrees in writing that such event shall not constitute Good Reason), in each case as determined in the Committee’s sole and absolute discretion: (A) a material reduction in the Participant’s duties or responsibilities from those in effect immediately prior to a Change in Control; (B) a material reduction in the Participant’s base salary below the levels in effect immediately prior to a Change in Control; or (C) relocation of the Participant’s primary place of employment to a location more than fifty (50) miles from its location, and further from the Participant’s primary residence, immediately prior to a Change in Control; provided, however, that with respect to any Good Reason termination, the Participant gives the Company, or the Subsidiary or Affiliate by which the Participant is employed, not less than thirty (30) days’ written notice (within sixty (60) days of the occurrence of the event constituting Good Reason) of the Participant’s intention to terminate the Participant’s employment for Good Reason, and states in detail in such notice the particular act or acts, or failure or failures to act, that constitute(s) the grounds on which the proposed termination for Good Reason is based, and

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such termination shall be effective at the expiration of such thirty (30) day notice period only if during such period the Company has not fully cured such act or acts or failure or failures to act that otherwise would constitute Good Reason. Further, any provision in this definition to the contrary notwithstanding, in order to constitute a termination for Good Reason, such termination must occur within six (6) months of the initial existence of the applicable condition.

        (x)    “Increase in Book Value Per Share” means the amount, if any, by which the Ending Book Value Per Share exceeds Beginning Book Value Per Share for the Performance Period.

        (xi)    “Misconduct” means the Participant’s engagement, during the Participant’s employment with the Company or any Subsidiary or any Affiliate, in an act which would, in the sole and absolute discretion of the Committee, constitute fraud that could be punishable as a crime, or embezzlement against either the Company, any Subsidiary or any Affiliate.

(xii)    “Obligations” means to not, either directly or indirectly, whether as an employee, consultant, independent contractor, partner, joint venturer or otherwise: (A)  engage in or direct any business activities, except those which are ministerial or clerical in nature, which are competitive with any business activities conducted by the Company or any Subsidiary or Affiliate during all of or part of the Relevant Period in or directed into any geographical area (x) where the Participant had responsibilities on behalf of the Company, Subsidiary or Affiliate, or about which the Participant received Confidential Information and (y) in which the Company, Subsidiary or Affiliate has engaged in business during all of or part of the Relevant Period; (B) on behalf of any person or entity engaged in business activities competitive with the business activities of the Company or any Subsidiary or Affiliate, solicit or induce, or in any manner attempt to solicit or induce, any person employed by, or as an agent or producer of, the Company, Subsidiary or Affiliate to terminate such person's employment or agency or producer relationship, as the case may be, with the Company, Subsidiary or Affiliate; (C) divert, or attempt to divert, any Covered Business Partner from doing business with the Company or any Subsidiary or Affiliate, or attempt to induce any Covered Business Partner to cease being a customer of the Company, Subsidiary or Affiliate; (D) solicit a Covered Business Partner to do business with a competitor or prospective competitor of the Company or any Subsidiary or Affiliate; or (E) disclose, make use of, or attempt to make use of, property or Confidential Information of the Company or any Subsidiary or Affiliate, other than in the course of the performance of services to, or at the direction of, the Company, Subsidiary or Affiliate.

(xiii) “Prospective Client” means any person, concern or entity (including, without limitation, any potential insured, agent, producer or other intermediary) with whom or which the Committee determines in its sole and absolute discretion that Participant knew or should have known that the Company or any of its Subsidiaries or Affiliates has been in negotiations during the Look Back Period to provide insurance or reinsurance or related services.

        (xiv)    “Qualifying Termination” means the termination of the Participant’s employment with the Company and all Subsidiaries and Affiliates prior to the end of the Performance Period as a result of: (i) Disability or Retirement; (ii) an action by the Company or a Subsidiary or Affiliate, as applicable, for any reason other than Cause; or, (iii) following a Change in Control, an action by the Participant for Good Reason.

        (xvi)    “Relevant Period” means the period beginning on the date hereof through the second anniversary of the Settlement Date.

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        (xv)    “Retirement” means the Participant’s retirement from service with the Company and all Subsidiaries and Affiliates with either the written consent of the Executive Chairman of the Board of the Company or the written consent of the Committee.

        (xvi)    “Settlement Date” means the date on which the value of the Performance Units is actually paid to the Participant.

    10.    Counterparts and Signatures. This Agreement may be signed in counterparts, each of which shall be an original, and all of which shall be construed together as a single instrument. This Agreement may be signed with electronic or facsimile signatures, and the instrument or a counterpart of the instrument so signed shall be an original with the same validity and effect as one with a physical signature.

    11.    Protected Conduct. Nothing in this Agreement (a) prohibits the Participant from reporting an event that the Participant reasonably and in good faith believes is a violation of law to the relevant law-enforcement agency (such as the Securities and Exchange Commission or Department of Labor), (b) requires notice to or approval from the Company before doing so, or (c) prohibits the Participant from cooperating in an investigation conducted by such a government agency. Further Participant is hereby advised that under the Defend Trade Secrets Act of 2016 (DTSA), no individual will be held criminally or civilly liable under federal, state or local trade secret law for the disclosure of a trade secret that: (i) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and made solely for the purpose of reporting or investigating a suspected violation of law; or, (ii) is made in a complaint or other document filed in a lawsuit or other proceeding if such filing is made under seal. Also, the DTSA further provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order. To the extent that the Participant is covered by Section 7 of the National Labor Relations Act (NLRA) because the Participant is not in a supervisor or management role, nothing in this Agreement shall be construed to prohibit the Participant from using information the Participant acquires regarding the wages, benefits, or other terms and conditions of employment at the Company for any purpose protected under the NLRA.

[Signatures to appear on following page]

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed effective as of January 1, 2022.

    W. R. Berkley Corporation

    By:    __________________________

Name:
    Title:

        ______________________________

    Participant

Please indicate the name of the Participant’s beneficiary:

Name

    The Participant may change his or her beneficiary hereunder only by written notice to the Company, which change will become effective only upon receipt by the Company during the Participant’s lifetime.

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EXHIBIT A

JURISDICTION SPECIFIC MODIFICATIONS

As used in this Exhibit A, the term “Company” includes W. R. Berkley Corporation and all of its Subsidiaries and Affiliates.

I. States of the United States of America

A.    All States. The Participant is advised to consult with an attorney prior to accepting the award under this Agreement.    

B.    California. For so long as the Participant primarily resides and works in California and is subject to the laws of California: (i) no provision or requirement of this Agreement will be construed or interpreted in a manner contrary to the express public policy of the State of California; (ii) the Obligations in Section 9(j)(xii)(A) shall not apply; (iii) Sections 9(j)(xii)(C) and (D) shall be limited to situations where the Participant is aided in his or her conduct by the Participant’s use or disclosure of trade secrets (as defined by applicable law); and (iv) Section 9(i) shall not apply.

C.    Massachusetts.For so long as Massachusetts General Laws Part I Title XXI Chapter 149 Section 24 L applies to the obligations of Participant under this Agreement: (i) the Obligations in Sections 9(j)(xii)(A), (C) and (D) will only apply within any geographical area (x) where Participant had responsibilities on behalf of the Company or about which Participant received Confidential Information during the Look Back Period and (y) in which the Company is engaged in business; (ii) Section 9(j)(xii)(A) is further limited to situations where Participant is performing services that are the same as or similar in function or purpose to the services Participant performed for the Company (as appropriate) during the Look Back Period and are not enforceable if the Participant has been terminated without cause or laid off; (iii) the second and third sentences of Section 9(e) are amended to replace “Delaware” with “Massachusetts”; (iv) Section 5(d) is amended by inserting after the phrase “If at any time up to or including the last day of the Relevant Period” with the following: “and in no event longer than one year after the date the Participant terminates employment with the Company”; and (v) this Agreement is amended to add the following new Section 12:

SECTION 12. The Company and Participant agree that the grant of Performance Units to Participant is fair and reasonable consideration for the obligations of Participant in this Agreement. The Company and Participant agree that the grant of Performance Units is consideration for the Participant’s Obligations under Section 5(d) and Section 9(j)(xii)(A) (as applicable) of this Agreement (as such Obligations are modified by Exhibit A hereto) during the duration of such Obligations. For the avoidance of doubt, Participant has the right to consult with an attorney prior to accepting this award. Participant acknowledges that Participant has been given at least ten business days to accept this award.

D.    North Dakota. For so long as the Participant resides in and is subject to the laws of North Dakota: (i) no provision or requirement of this Agreement shall be construed or interpreted in a manner contrary to the express public policy of the State of North Dakota; (ii) the Obligations in Section 9(j)(xii)(A) shall not apply; and (iii) Sections 9(j)(xii)(C) and (D) shall be limited to situations where the Participant is aided in his or her conduct by the Participant’s use or disclosure of trade secrets (as defined by applicable law).

E.    Oklahoma. For so long as the Participant resides in and is subject to the laws of Oklahoma: (i) the Obligations in Section 9(j)(xii)(A) shall not apply and (ii) “Covered

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Business Partner” of the Company means any individual, company, or business entity (including, without limitation, any Client) with which the Company has transacted business within the Look Back Period and with which the Participant, or persons supervised by the Participant, had material business-related contact or about which the Participant had access to Confidential Information during the Look Back Period.

F.Washington. For so long as Participant primarily resides and works in Washington and is subject to the laws of Washington: (a) the Obligations in Section 9(j)(xii)(A) shall only apply post-employment if Participant’s annualized earnings from the Company exceed $100,000.00 per year (adjusted annually in accordance with Section 5 of Washington HP 1450); (b) the Obligations in Section 9(j)(xii)(A) shall not be enforced against Participant if Participant is terminated from employment without cause or if Participant is laid off unless the Company pays the Participant during the Relevant Period an amount equal to the Participant’s base salary at the time of termination less any compensation earned by Participant during the Relevant Period; and (c) Section 9(e) shall not apply. Participant further understands that for the limited purposes of the application of Section 9(j)(xii)(A), “cause” to terminate Participant’s employment exists if Participant has (i) committed, admitted committing, or plead guilty to a felony or crime involving moral turpitude, fraud, theft, misappropriation, or dishonesty, (ii) violated a material term of this Agreement or Company policy, (iii) engaged in insubordination, or failed or refused to perform assigned duties of Participant’s position despite reasonable opportunity to perform, (iv) failed to exercise reasonable care and diligence in the exercise of Participant’s duties for the Company, or (iv) engaged in conduct or omissions that Participant knew, or should have known (with the exercise of reasonable care), would cause, or be likely to cause, harm to the Company or its reputation in the business community. Participant agrees that this grant of Performance Units is independent consideration for the Obligations.

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II. Countries Other than the United States of America

A.    Argentina. For an Argentinian resident, for so long as the Participant resides in Argentina and is subject to the laws of Argentina:

(i)Section 9(e) shall be deleted in its entirety and replaced with the following:

“(e) This Agreement shall be construed and interpreted in accordance with the laws of Argentina. The Participant hereby irrevocably consents to the exclusive personal jurisdiction of the Argentine courts for the resolution of any disputes arising out of, or relating, to this Agreement.”

(ii)     This Agreement shall not be effective unless the Participant physically signs an original Agreement.

B.    Australia. For an Australian resident, for so long as the Participant resides in Australia and is subject to the laws of Australia:

(i)Section 9(e) shall be deleted in its entirety and replaced with the following:

“(e) This Agreement shall be construed and interpreted in accordance with the laws of the State of New South Wales in Australia. The Participant hereby irrevocably consents to the personal jurisdiction of the federal and state courts of the State of New South Wales in Australia for the resolution of any disputes arising out of, or relating to, this Agreement.”

(ii)The provisions in “Addendum for Australia, Canada, Hong Kong and Singapore” set forth below shall be applicable.

C.    Canada. For a Canadian resident, for so long as the Participant resides in Canada and is subject to the laws of Canada:

    The provisions in “Addendum for Australia, Canada, Hong Kong and Singapore” set forth below shall be applicable.

D.    Colombia. For a Colombian resident, for so long as the Participant resides in Colombia and is subject to the laws of Colombia:

The Participant agrees that the Performance Units rights derived from this Agreement are not consideration for the services rendered by the Participant in Colombia. For this Agreement to be effective, the Participant must enter into a local agreement, governed by Colombian laws, with the Participant’s current employer in which the Participant agrees to the statement in the prior sentence.

E.    Hong Kong. For a Hong Kong resident, for so long as the Participant resides in Hong Kong and is subject to the laws of Hong Kong:

(i)Section 6 shall be deleted in its entirety and replaced with the following:

SECTION 6. Non-Transferability. (a) Subject to Section 6(b) below and except as specifically consented to by the Committee, the Participant may not sell, transfer, pledge, or otherwise encumber or dispose of the Performance Units other than by will, the laws of descent and distribution, or as otherwise provided for in the Plan.

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(b) Notwithstanding any other provisions of this Agreement, if the Participant resides in, or received this offer in Hong Kong, the Participant shall have no rights or entitlement to sell, transfer or otherwise dispose of the Performance Units, except if such sale, transfer or disposal is permitted pursuant to the Plan and specifically consented to by the Committee.

(ii)The provisions in “Addendum for Australia, Canada, Hong Kong and Singapore” set forth below shall be applicable.

F.    Norway. For a Norwegian resident, for so long as Participant resides in Norway and is subject to the laws of Norway:

(i)In Section 5(d), the words “or Solicitation” shall be added, in each instance after the word “Obligation(s)”;

(ii)In Section 5(d), in the first sentence, solely with respect to Solicitation, the phrase “Relevant Period” shall be replaced with “the first anniversary of the Settlement Date”;

(iii)In Section 9(j)(xii), subsections (C) and (D) shall be deleted and subsection (E) shall be renumbered as subsection (C); and

(iv)In Section 9(j), the following new subsection (xvii) shall be added:

“(xvii) ”Solicitation”. For purposes of this Agreement, the Participant has engaged in "Solicitation" if the Participant from the date hereof through the first anniversary of the Settlement Date, directly or indirectly (i) diverts, or attempts to divert, any person, concern or entity from doing business with the Company or attempts to induce any such person, concern or entity to cease being a customer of the Company, (ii) solicits the business of the Company or (iii) influences customers, suppliers and/or other business associates/contract parties of the Company to limit or terminate their relationship with the Company . With respect to customers, the preceding sentence only applies to customers which the Participant has had contact with and/or responsibility for during the last 12 months prior to the time of the written statement as mentioned below.

(v)    In Section 5, a new subsection (f) shall be added:

(f) The Company may, upon the request from the Participant and in connection with termination, summary dismissal or other cessation of employment, decide whether and to what extent the Participant’s obligation to refrain from Solicitation shall be invoked. With respect to customers, the procedure in connection with such a decision shall comply with the mandatory provisions of Chapter 14A in the Norwegian Working Environment Act, including the specification of which customers are covered by the Participant’s obligation to refrain from Solicitation in a written statement.”

G.    Singapore. For a Singaporean resident, for so long as the Participant resides in Singapore and is subject to the laws of the Republic of Singapore:

(i)In first sentence of Section 5(d), the phrase “that, in the Committee’s sole and absolute discretion, reflects the seriousness of the breach of the Obligation(s) and/or

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Misconduct; the maximum amount that the Company may demand from the Participant is” shall be added after the words “an amount” ;

(ii) In Section 5(d), in the last sentence, all words following the phrase “pursuant to this provision” shall be deleted and replaced with “are reasonable.”

(iii) Section 9(e) shall be deleted in its entirety and replaced with the following:

“(e) This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware. The Participant hereby irrevocably consents to the personal jurisdiction of the courts of the Republic of Singapore for the resolution of any disputes arising out of, or relating to, this Agreement.”

(iv) The provisions in “Addendum for Australia, Canada, Hong Kong and Singapore” set forth below shall be applicable.

H.    United Kingdom. For a United Kingdom resident, for so long as the Participant resides in the United Kingdom and is subject to the laws of England and Wales or if the Participant is employed under an employment contract which is governed by English law at the time of grant of the Performance Units: (i) in Section 4(b) the phrase “the Obligations set forth in Section 5(d)” shall be deleted and replaced with “the Obligations set forth in Exhibit A II. Countries other than the United States of America: United Kingdom” and (ii) the following terms and provisions shall amend and supersede the terms and provisions of Section 5(d), Section 9(e), Section 9(j)(iv), Section 9(j)(v), Section 9(j)(vi), Section 9(j)(xi), Section 9(j)(xii) and Section 9(j)(xiii) of this Agreement as follows:

1.     TERMINATION OF EMPLOYMENT

    With effect from the earlier of the date of termination of the Participant’s employment or the date that the Participant gives or receives notice of termination of the Participant’s employment for any reason, any unsettled Performance Units shall lapse and be forfeited (except as set out in Section 5(b) of this Agreement and subject to the forfeiture provisions in paragraph 3 below) and the Participant shall have no further rights with respect to any such unsettled Performance Units.

2.     PARTICIPANT OBLIGATIONS

2.1    The Participant covenants with the Company and the Group that the following acts constitute a breach of Participant’s Obligations unless authorized by the Company:

2.1.1.    during the Relevant Period directly or indirectly being employed, engaged or retained by or otherwise concerned or interested in any Competing Business. For this purpose, the Participant is directly or indirectly employed, engaged or retained by or concerned or interested in a Competing Business if:

(a)    the Participant carries it on as principal or agent; or

(b)    the Participant is a partner, director, employee, secondee, consultant or agent in, of or to any person who carries on the Competing Business;

(c)    the Participant has any direct or indirect financial interest (as shareholder, creditor or otherwise) in any person who carries on the Competing Business; and/or

(d)    the Participant is a partner, director, employee, secondee, consultant or agent in, of or to any person who has a direct or indirect financial interest (as shareholder, creditor or otherwise) in any person who carries on the Competing Business,

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disregarding any financial interest the Participant may have in securities which are listed or dealt in on a recognised investment exchange if the Participant is interested in securities which amount to less than 3% of the issued securities of that class and which, in all circumstances, carry less than 3% of the voting rights (if any) attaching to the issued securities of that class;

2.1.2    during the Relevant Period and whether directly or indirectly, either alone or with or on behalf of any person, firm, company or entity and whether on his or her own account or as principal, partner, shareholder, director, employee, consultant or in any other capacity whatsoever, having any business dealings with any Client or Prospective Client in relation to or for the benefit of a Competing Business;    

2.1.3    during the Relevant Period and whether directly or indirectly, either alone or with or on behalf of any person, firm, company or entity and whether on his or her own account or as principal, partner, shareholder, director, employee, consultant or in any other capacity whatsoever, canvassing or soliciting business or custom from or seek to entice away any Client or Prospective Client from the Company or any Group Company in relation to or for the benefit of a Competing Business;

2.1.4    during the Relevant Period, directly or indirectly, soliciting or endeavouring to solicit the employment or engagement of any Key Employee (whether or not such person would thereby breach their contract of employment or engagement);

2.1.5    at any time after the Termination Date representing himself as being in any way connected with (other than as a former employee) or interested in the business of the Company or any Group Company or using any registered names, domain names or trading names the same as or that could reasonably be expected to be confused with any such names used by the Company or any Group Company.

2.1.6     before or after the Termination Date, and except in the proper performance of his or her duties of employment by the Company or any Group Company, directly or indirectly using for his or her own purposes or those of a third party or disclosing to any third party any Confidential Information. The Participant will use his or her best endeavours to prevent any unauthorised use or disclosure of Confidential Information. The obligations contained in this clause 2.1.6 will not apply to any disclosures required by law or to any information or documents which after the Termination Date are in the public domain other than by way of unauthorised disclosure.

2.2    The Participant gives the covenants above to the Company as trustee for itself (and any company forming part of the Group).

2.3    Each Obligation contained in this clause 2 is an entirely separate and independent Obligation, despite the fact that they may be contained in the same phrase, and if any part is found to be unenforceable the remainder will remain valid and enforceable.

2.4    While the Obligation in this clause 2 are considered by the parties to be fair and reasonable in the circumstances, it is agreed that if any such Obligation restriction should be held to be void or ineffective for any reason but would be treated as valid and effective if some part of parts for the Obligation were deleted, the Obligation in question will apply with such deletion as may be necessary to make it valid and effective.

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2.5    If, during the Participant’s employment or any period during which these Obligations apply, any person, firm, company or entity offers the Participant any employment, engagement, arrangement or contract which might or would cause him or her to breach any of the Obligations, he or she will notify that person, firm, company or entity of the terms of these Obligations.

2.6    The length of time concerning any Relevant Period concerning the Participant’s activities after the Termination Date imposed pursuant to clauses 2.1.1 to 2.1.4 shall be reduced pro rata by any period of garden leave served by the Participant pursuant to his or her service agreement with the Company or any Group Company.

2.7    If the Compensation Committee determines in its sole and absolute discretion that Participant has breached any of the covenants contained in clauses 2.1.1 to 2.1.6, then any unsettled Performance Units will lapse with immediate effect and the Compensation Committee may exercise its discretion to direct the Participant to return all amounts paid to the Participant in respect of the Performance Units within the Relevant Period to the Company within 14 days of being notified by the Company of its discovery of the breach.

2.8    In this clause, the following definitions shall apply:

“Client”

means any person, firm, company or other business entity whom or which during the Relevant Business Period: (a) to whom the Company or any Group Company provided insurance or reinsurance; or (b) was an insurance intermediary which introduced such insurance or reinsurance business to the Company or any Group Company, and in each case with whom or which during the Relevant Business Period: i)the Participant (or any person reporting to the Participant) had Material Dealings in relation to Relevant Business; or ii)about whom or which the Participant has had Confidential Information during the course of his or her employment.

“Competing Business”

means any business which at any time is in or which intends to be in competition with any Relevant Business.

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“Confidential Information”	means any and all information which is of a confidential nature or which the Company reasonably regards as being confidential or a trade secret concerning the business, business performance or prospective business, financial information or arrangements, plans or internal affairs of the Company, any Group Company or any of their respective Clients or Prospective Clients including without prejudice to the generality of the foregoing all information, records and materials relating to: (1)underwriting premiums or quotes, pricing models and formulas, income and receipts, claims records and levels, renewals, policy wording and terms, reinsurance quotas, and profit commission; (2)syndicate or other business projections and forecasts; (3)Client lists, brokers lists and price sensitive information; (4)technical information, including computer programs, reports, interpretations, forecasts, corporate and business plans and accounts, business methods, financial details, projections and targets; (5)remuneration and personnel details concerning other Company employees or contractors; (6)planned products, planned services, marketing surveys, internal templates, training materials, research reports, market share and pricing statistics, budgets, fee levels; (7)computer passwords, the contents of any databases, tables, know how documents or materials; (8)commissions, commission charges, pricing policies and all information about research and development; and (9)the Company’s or any Group Company’s Clients’ or Prospective Clients’ names, addresses (including email addresses), telephone, facsimile or other contact numbers and contact names, the nature of their business operations, their requirements for services supplied by the Company or any Group Company and all confidential aspects of their relationship with the Company or any Group Company.
“directly or indirectly”	means (without prejudice to the generality of the expression) either alone or jointly with or on behalf of any other person and whether on his or her own account or in partnership with another or others or as the holder of any interest in or as officer, employee or agent of or consultant to any other person.
“Group”	means the Company, its subsidiaries or holding companies from time to time and any subsidiary of any holding company from time to time; and “Group Company” means any company within the Group.

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“Key Employee”	means any director or officer of the Company or any Group Company and/or any employee (other than administrative or clerical personnel) of the Company or any Group Company, in each case who, at any time during the Relevant Business Period: i)was employed by the Company or any Group Company; and ii)with whom the Participant has had Material Dealings or exercised control or had management responsibility for; and/or iii)has had access to or has obtained Confidential Information during the Relevant Business Period.
“Material Dealings”	means receiving orders, instructions or enquiries from, contracting or making preparations to contract with, making sales or presenting to or with, tendering for business from, having responsibility with or for, having personal knowledge of or otherwise having significant other contact.
“Prospective Client”	means any person, firm, company or other business entity who was at any time during the Relevant Business Period: (a) in negotiations with the Company or any Group Company for the provision of insurance or reinsurance; or (b) an insurance intermediary who may introduce such insurance or reinsurance business to the Company or any Group Company, and in each case with whom or which during the Relevant Business Period: i)the Participant (or any person reporting to the Participant) had Material Dealings in relation to Relevant Business; or ii)about whom or which the Participant has had Confidential Information during the course of Participant’s employment. Provided that this definition shall not apply to any such person, firm, company or other business entity which has withdrawn from or discontinued such negotiations or discussions, having stated its intention to do so (other than through any unlawful activity by the Participant).

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“Relevant Business”	means any class or classes of insurance or reinsurance business which was underwritten in the twelve months immediately prior to the Termination Date by the Company or any Group Company and with which the Participant was directly or indirectly materially concerned or involved or had personal knowledge in the course of Participant’s duties during the Relevant Business Period.
“Relevant Business Period”	means (1) during employment, the twelve month period immediately prior to the action or activity that may be in breach of clauses 2.1.1 to 2.1.4 and (2) after termination of employment, the twelve month period immediately prior to the Termination Date. This defined term shall replace the term “Look Back Period” in the body of this Agreement
“Relevant Period”	means the period beginning on the date hereof and ending two years following the Settlement Date.
“Termination Date”	means the date on which the Participant’s employment or engagement with the Company terminates for any reason.

3.    CLAWBACK

3.1    If at any time under the terms of this Agreement the Committee becomes aware of any material wrongdoing, negligence or misconduct on the part of the Participant that would have entitled the Company to terminate the Participant's employment with or without notice for Cause, the Compensation Committee shall have the sole and absolute discretion to find breach and (x) if such material wrongdoing, negligence or misconduct occurred prior to the Settlement Date, all Performance Units will lapse with immediate effect or (y) if such material wrongdoing, negligence or misconduct occurred on or after the Settlement Date or occurred prior to the Settlement Date but was not discovered until after the Settlement Date, the Compensation Committee shall have the sole and absolute discretion, to recover from the Participant up to 100% of the amount paid on the Settlement Date to the Participant in respect of the Performance Units (which have been settled within the 2 years prior to such determination by the Committee) to the Company within 14 days of being notified in writing by the Company of its discovery of the material wrongdoing, negligence or misconduct.

3.2    Clause 3.1 is without prejudice to the Company's other remedies under any other agreements with Participant or any other clawback policy that the Company may adopt from time to time as required by applicable laws or the applicable listing rules of any securities exchange or its remedies under other applicable law.

3.3    The Committee may review any Performance Units granted to the Participant under the terms of this Agreement, in light of:

a.there being a significant deterioration in the financial health of the Company, the Group or the business area or team in which the Participant worked;

b.the Participant having caused harm to the reputation of the Company or the Group;

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c.the Participant having deliberately misled the Company in relation to the financial performance of the Company, the Group or the business area or team in which he or she worked; and/or

d.the Participant’s actions having amounted to gross misconduct, incompetence or negligence.

Following a review, the Committee may, in its sole discretion, (x) if prior to the Settlement Date, determine that up to 100% of any unsettled Performance Units granted under this Agreement will lapse with immediate effect or, (y) if on or after the Settlement Date, the Company will be entitled in its absolute discretion to recover from the Participant up to 100% of the amount paid to the Participant in respect of the Performance Units granted under this Agreement (which have been settled within the 2 years prior to such determination by the Committee).

3.4    The Participant agrees that any sums owed to the Company or any Group Company under this Agreement including any adjustment, forfeiture or repayment may be deducted from any sums due to the Participant from the Company or any Group Company. For the avoidance of doubt, this is without prejudice to any right the Company or the Group may have at any time to recover any sums from the Participant and the Participant agrees that such sums are recoverable by the Company or any Group Company as a debt.

3.5    In this Clause 3, “Cause” means:

a.any serious negligence or gross misconduct by the Participant in connection with or affecting the business or affairs of the Company or any member of the Group;

b.the Participant being convicted of any arrestable offence other than an offence under road traffic legislation in the UK; or

c.the Participant being convicted of an offence under any statutory enactment or regulation relating to insider dealing or market abuse.

4.     CHOICE OF LAW

4.1    Any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with this Agreement or its subject matter or formation shall be governed by and construed in accordance with the law of England and Wales.

5.    ARBITRATION

5.1    If at any time any dispute or question shall arise between the parties arising out of or in connection with this Agreement or its or their validity, construction or performance then the same shall be referred to and finally resolved by arbitration under the London Court of International Arbitration Rules, which Rules are deemed to be incorporated by reference into this clause.

The number of arbitrators shall be three.

The seat, or legal place, of arbitration shall be London, England.

The language to be used in the arbitral proceedings shall be English.

The governing law of the contract shall be the substantive law of England and Wales.

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I.    Addendum for Australia, Canada, Hong Kong and Singapore. For residents of Australia, Canada, Hong Kong or Singapore, for so long as Participant resides in his or her respective country and is subject to the laws of such country, Sections 9(j)(iv), 9(j)(v), 9(j)(vi), 9(j)(xii) and 9(j)(xiii) shall be deleted and the remaining subsections in Section 9(j) shall be renumbered accordingly.

In Section 5 a new subsection (f) shall be added as follows

(f)    The Participant covenants with the Company and the Group that it shall be a breach of Participant’s Obligations if the Participant, save with the prior written consent of the Committee (in its absolute discretion):

A.    during the Relevant Period, directly or indirectly, is employed, engaged or retained by or otherwise concerned or interested in any Competing Business. For this purpose, the Participant is directly or indirectly employed, engaged or retained by or concerned or interested in a Competing Business if:

(i)    the Participant carries it on as principal or agent; or

(ii)    the Participant is a partner, director, employee, secondee, consultant or agent in, of or to any person who carries on the Competing Business;

(iii)    the Participant has any direct or indirect financial interest (as shareholder, creditor or otherwise) in any person who carries on the Competing Business; and/or

(iv)    the Participant is a partner, director, employee, secondee, consultant or agent in, of or to any person who has a direct or indirect financial interest (as shareholder, creditor or otherwise) in any person who carries on the Competing Business,

disregarding any financial interest the Participant may have in securities which are listed or dealt in on a recognised investment exchange if the Participant is interested in securities which amount to less than 3% of the issued securities of that class and which, in all circumstances, carry less than 3% of the voting rights (if any) attaching to the issued securities of that class;

B.    during the Relevant Period and whether directly or indirectly, either alone or with or on behalf of any person, firm, company or entity and whether on his or her own account or as principal, partner, shareholder, director, employee, consultant or in any other capacity whatsoever, having any business dealings with any Client or Prospective Client in relation to or for the benefit of a Competing Business;    

C.    during the Relevant Period and whether directly or indirectly, either alone or with or on behalf of any person, firm, company or entity and whether on his or her own account or as principal, partner, shareholder, director, employee, consultant or in any other capacity whatsoever, canvassing or soliciting business or custom from or seeking to entice away any Client or Prospective Client from the Company or any Group Company in relation to or for the benefit of a Competing Business;

D.    during the Relevant Period, directly or indirectly, soliciting or endeavouring to solicit the employment or engagement of any Key Employee (whether or not such person would thereby breach their contract of employment or engagement);

E.    at any time after the Termination Date representing himself or herself as being in any way connected with (other than as a former employee) or interested in the business of the Company or any Group Company or use any registered names, domain names or trading

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names the same as or that could reasonably be expected to be confused with any such names used by the Company or any Group Company.

F.     before or after the Termination Date and except in the proper performance of his or her duties of employment for the Company or Group Company directly or indirectly using for his or her own purposes or those of a third party or disclosing to any third party any Confidential Information. The Participant will use his or her best endeavours to prevent any unauthorised use or disclosure of Confidential Information. The obligations contained in this subsection F will not apply to any disclosures required by law or to any information or documents which after the Termination Date are in the public domain other than by way of unauthorised disclosure.

The Participant gives the covenants above to the Company as trustee for itself (and any company forming part of the Group).

Each Obligation contained in this Section 5(f) is an entirely separate and independent Obligation, despite the fact that they may be contained in the same phrase, and if any part is found to be unenforceable the remainder will remain valid and enforceable.

While the Obligations in this Section 5(f) are considered by the parties to be fair and reasonable in the circumstances, it is agreed that if any such Obligation should be held to be void or ineffective for any reason but would be treated as valid and effective if some part of parts of the Obligation were deleted, the Obligation in question will apply with such deletion as may be necessary to make it valid and effective.

The Length of period of any Relevant Period concerning the Participant’s activities after the Termination Date imposed pursuant to sub-section A to D of Section 5(f) shall be reduced pro rata by any period of garden leave served by the Participant pursuant to his or her service agreement with the Company or any Group Company.

The determination as to whether the Participant has breached an Obligation shall be made by the Committee in its sole and absolute discretion. The Committee has sole and absolute discretion to determine whether, notwithstanding its determination that Participant has breached an Obligation, repayment or forfeiture as provided herein shall not occur. The Committee’s exercise or nonexercise of its discretion with respect to any particular event or occurrence by or with respect to the Participant or any other recipient of restricted stock units shall not in any way reduce or eliminate the authority of the Committee to (i) determine that any event or occurrence by or with respect to the Participant constitutes breaching an Obligation or (ii) determine the related date of breach of an Obligation.

In this Agreement, the following definitions shall apply:

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“Client”	means any person, firm, company or other business entity whom or which during the Relevant Business Period: (a) to whom the Company or any Group Company provided insurance or reinsurance; or (b) was an insurance intermediary which introduced such insurance or reinsurance business to the Company or any Group Company, and in each case with whom or which during the Relevant Business Period: i)the Participant (or any person reporting to the Participant) had Material Dealings in relation to Relevant Business; or ii)about whom or which the Participant has had Confidential Information during the course of his or her employment.
“Obligation”	means any of the activities, individually or in the aggregate, described in sub-sections A through F of Section 5(f).
“Competing Business”	means any business which at any time is in or which intends to be in competition with any Relevant Business.

13

“Confidential Information”

means any and all information which is of a confidential nature or which the Company reasonably regards as being confidential or a trade secret concerning the business, business performance or prospective business, financial information or arrangements, plans or internal affairs of the Company, any Group Company or any of their respective Clients or Prospective Clients including without prejudice to the generality of the foregoing all information, records and materials relating to: (1)underwriting premiums or quotes, pricing models and formulas, income and receipts, claims records and levels, renewals, policy wording and terms, reinsurance quotas, and profit commission; (2)syndicate or other business projections and forecasts; (3)Client lists, brokers lists and price sensitive information; (4)technical information, including computer programs, reports, interpretations, forecasts, corporate and business plans and accounts, business methods, financial details, projections and targets; (5)remuneration and personnel details; (6)planned products, planned services, marketing surveys, internal templates, training materials, research reports, market share and pricing statistics, budgets, fee levels; (7)computer passwords, the contents of any databases, tables, know how documents or materials; (8)commissions, commission charges, pricing policies and all information about research and development; and (9)the Company’s or any Group Company’s Clients’ or Prospective Clients’ names, addresses (including email addresses), telephone, facsimile or other contact numbers and contact names, the nature of their business operations, their requirements for services supplied by the Company or any Group Company and all confidential aspects of their relationship with the Company or any Group Company.

“directly or indirectly”

means (without prejudice to the generality of the expression) either alone or jointly with or on behalf of any other person and whether on his or her own account or in partnership with another or others or as the holder of any interest in or as officer, employee or agent of or consultant to any other person.

14

“Group”	means the Company, its subsidiaries or holding companies from time to time and any subsidiary of any holding company from time to time; and “Group Company” means any company within the Group.
“Key Employee”	means any director or officer of the Company or any Group Company and/or any employee (other than administrative or clerical personnel) of the Company or any Group Company, in each case who, at any time during the Relevant Business Period: i)was employed by the Company or any Group Company; and ii)with whom the Participant has had Material Dealings or exercised control or had management responsibility for; and/or iii)has had access to or has obtained Confidential Information during the Relevant Business Period.
“Material Dealings”	means receiving orders, instructions or enquiries from, contracting or making preparations to contract with, making sales or presenting to or with, tendering for business from, having responsibility with or for, having personal knowledge of or otherwise having significant other contact.
“Prospective Client”	means any person, firm, company or other business entity who was at any time during the Relevant Business Period: (a) in negotiations with the Company or any Group Company for the provision of insurance or reinsurance; or (b) an insurance intermediary who may introduce such insurance or reinsurance business to the Company or any Group Company, and in each case with whom or which during the Relevant Business Period: i)the Participant (or any person reporting to the Participant) had Material Dealings in relation to Relevant Business; or ii)about whom or which the Participant has had Confidential Information during the course of Participant’s employment. Provided that this definition shall not apply to any such person, firm, company or other business entity which has withdrawn from or discontinued such negotiations or discussions, having stated its intention to do so (other than through any unlawful activity by the Participant).

15

“Relevant Business”	means any class or classes of insurance or reinsurance business which was underwritten in the twelve months immediately prior to the Termination Date by the Company or any Group Company and with which the Participant was directly or indirectly materially concerned or involved or had personal knowledge in the course of Participant’s duties during the Relevant Period.
“Relevant Business Period”	means (1) during employment, the twelve month period immediately prior to the action or activity that may be in breach of clauses A to D of Section 5(f) and (2) after termination of employment, the twelve month period immediately prior to the Termination Date. The term “Look Back Period” in the main Agreement shall be replaced with the defined term “Relevant Business Period”.
“Termination Date”	means the date on which the Participant’s employment or engagement with the Company terminates for any reason.

16

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, W. Robert Berkley, Jr., President and Chief Executive Officer of W. R. Berkley Corporation (the “registrant”), certify that:

1. I have reviewed this quarterly report on Form 10-Q of the registrant;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 3, 2022

/s/ W. Robert Berkley, Jr.

W. Robert Berkley, Jr.

President and
Chief Executive Officer 

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Richard M. Baio, Senior Vice President - Chief Financial Officer and Treasurer of W. R. Berkley Corporation (the “registrant”), certify that:

1. I have reviewed this quarterly report on Form 10-Q of the registrant;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 3, 2022

/s/ Richard M. Baio

Richard M. Baio

Executive Vice President,
Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of W. R. Berkley Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), we, W. Robert Berkley, Jr., President and Chief Executive Officer of the Company, and Richard M. Baio, Senior Vice President - Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ W. Robert Berkley, Jr.

W. Robert Berkley, Jr.

President and Chief Executive Officer

/s/ Richard M. Baio

Richard M. Baio

Executive Vice President,
Chief Financial Officer and Treasurer

May 3, 2022

A signed original of this written statement required by Section 906 has been provided to W. R. Berkley Corporation (the “Company”) and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Cover Page - shares	3 Months Ended
	Mar. 31, 2022	May 02, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	1-15202
Entity Registrant Name	W. R. BERKLEY CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-1867895
Entity Address, Address Line One	475 Steamboat Road
Entity Address, City or Town	Greenwich
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06830
City Area Code	(203)
Local Phone Number	629-3000
Title of 12(b) Security	Common Stock, par value $.20 per share
Trading Symbol	WRB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		265,193,412
Entity Central Index Key	0000011544
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
5.700% Subordinated Debentures due 2058
Entity Information [Line Items]
Title of 12(b) Security	5.700% Subordinated Debentures due 2058
Trading Symbol	WRB-PE
Security Exchange Name	NYSE
5.100% Subordinated Debentures due 2059
Entity Information [Line Items]
Title of 12(b) Security	5.100% Subordinated Debentures due 2059
Trading Symbol	WRB-PF
Security Exchange Name	NYSE
4.250% Subordinated Debentures due 2060
Entity Information [Line Items]
Title of 12(b) Security	4.250% Subordinated Debentures due 2060
Trading Symbol	WRB-PG
Security Exchange Name	NYSE
4.125% Subordinated Debentures due 2061
Entity Information [Line Items]
Title of 12(b) Security	4.125% Subordinated Debentures due 2061
Trading Symbol	WRB-PH
Security Exchange Name	NYSE

XML

Consolidated Balance Sheets Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investments:
Fixed maturity securities (amortized cost of $16,838,703 and $16,471,304; allowance for expected credit losses of $26,531 and $22,625 at March 31, 2022 and December 31, 2021, respectively)	$ 16,426,196	$ 16,602,673
Real estate	1,276,157	1,852,508
Investment funds	1,545,648	1,480,612
Arbitrage trading account	1,188,910	1,179,606
Equity securities	1,126,491	941,243
Loans receivable (net of allowance for expected credit losses of $1,429 and $1,718 at March 31, 2022 and December 31, 2021, respectively)	115,097	115,172
Total investments	21,678,499	22,171,814
Cash and cash equivalents	2,114,841	1,568,843
Premiums and fees receivable (net of allowance for expected credit losses of $28,236 and $25,218 at March 31, 2022 and December 31, 2021, respectively)	2,599,357	2,522,972
Due from reinsurers (net of allowance for expected credit losses of $7,655 and $7,713 at March 31, 2022 and December 31, 2021, respectively)	2,929,161	2,923,026
Deferred policy acquisition costs	716,645	676,145
Prepaid reinsurance premiums	680,703	676,915
Property, furniture and equipment	417,888	419,883
Goodwill	169,652	169,652
Accrued investment income	129,194	122,938
Current and deferred federal and foreign income taxes	43,527	42,457
Other assets	771,487	753,231
Total assets	32,250,954	32,047,876
Liabilities:
Reserves for losses and loss expenses	15,722,889	15,390,888
Unearned premiums	5,026,905	4,847,160
Due to reinsurers	524,562	514,980
Trading account securities sold but not yet purchased	241	1,169
Trading account payable to brokers and clearing organizations	56,652	53,636
Other liabilities	1,189,919	1,305,245
Senior notes and other debt	1,834,155	2,259,416
Subordinated debentures	1,007,832	1,007,652
Total liabilities	25,363,155	25,380,146
Equity:
Perferred stock, par value $.10 per share: Authorized 5,000,000 shares; issued and outstanding - none	0	0
Common stock, par value $.20 per share: Authorized 500,000,000 shares, issued and outstanding, net of treasury shares, 177,930,502 and 183,411,907 shares, respectively	105,803	105,803
Additional paid-in capital	992,012	981,104
Retained earnings	9,582,790	9,015,135
Accumulated other comprehensive loss	(649,229)	(281,955)
Treasury stock, at cost, 263,828,377 and 263,843,868 shares, respectively	(3,166,873)	(3,167,076)
Total stockholders’ equity	6,864,503	6,653,011
Noncontrolling interests	23,296	14,719
Total equity	6,887,799	6,667,730
Total liabilities and equity	$ 32,250,954	$ 32,047,876

XML

Consolidated Balance Sheets Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Fixed maturity securities, allowance for credit loss	$ 26,531	$ 22,625
Fixed maturity securities, amortized cost	16,838,703	16,471,304
Cumulative effect adjustment resulting from changes in accounting principles	1,429	1,718
Cumulative effect adjustment resulting from changes in accounting principles	28,236	25,218
Reinsurance recoverable, allowance for credit loss	$ 7,655	$ 7,713
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock issued (in shares)	5,000,000	5,000,000
Preferred stock outstanding (in shares)	0	0
Common stock, par value (in dollar per share)	$ 0.20	$ 0.20
Common shares authorized (in shares)	750,000,000	750,000,000
Common shares issued (in shares)	265,186,251	265,170,882
Common shares outstanding (in shares)	265,186,251	265,170,882
Treasury stock issued at cost (in shares)	263,828,377	263,843,868

XML

Consolidated Statements Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
REVENUES:
Net premiums written	$ 2,413,254	$ 2,050,038
Change in net unearned premiums	(164,167)	(200,082)
Net premiums earned	2,249,087	1,849,956
Net investment income	173,512	158,577
Net realized and unrealized gains on investments	369,882	51,759
Change in allowance for expected credit losses on investments	(3,617)	(16,920)
Net investment gains	366,265	34,839
Revenues from non-insurance businesses	97,776	87,430
Insurance service fees	27,951	25,808
Other income	818	259
Total revenues	2,915,409	2,156,869
OPERATING COSTS AND EXPENSES:
Losses and loss expenses	1,339,252	1,121,592
Other operating costs and expenses	713,899	616,268
Expenses from non-insurance businesses	94,855	86,290
Interest expense	34,970	36,651
Total operating costs and expenses	2,182,976	1,860,801
Income before income taxes	732,433	296,068
Income tax expense	(139,403)	(64,352)
Net income before noncontrolling interests	593,030	231,716
Noncontrolling interests	(2,392)	(2,191)
Net income to common stockholders	$ 590,638	$ 229,525
NET INCOME PER SHARE:
Basic (in dollar per share)	$ 2.13	$ 0.83
Diluted (in dollar per share)	$ 2.12	$ 0.82

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income before noncontrolling interests	$ 593,030	$ 231,716
Other comprehensive (loss) income:
Change in unrealized currency translation adjustments	56,272	4,050
Change in unrealized investment losses, net of taxes	(423,545)	(90,130)
Other comprehensive loss	(367,273)	(86,080)
Comprehensive income	225,757	145,636
Noncontrolling interests	(2,391)	(2,191)
Comprehensive income to common stockholders	$ 223,366	$ 143,445

XML

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Retained earnings	Accumulated Other Comprehensive Income (Loss)	Unrealized investment gain	Currency Translation Adjustments	Treasury stock	Noncontrolling interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect adjustment resulting from changes in accounting principles		$ 105,803	$ 977,215	$ 8,348,381	$ (62,172)	$ 289,714	$ (351,886)	$ (3,058,425)	$ 14,995
Beginning of period at Dec. 31, 2020		105,803	977,215	8,348,381	(62,172)	289,714	(351,886)	(3,058,425)	14,995
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock units issued			(525)
Restricted stock units expensed			11,598
Net income before noncontrolling interests	$ 231,716			229,525					2,191
Dividends ($0.09 and $0.08, per share, respectively)				(21,285)
Change in unrealized losses on securities without an allowance for expected credit losses	(90,130)					(100,485)
Change in unrealized gains on securities with an allowance for expected credit losses						10,355
Net change in period	4,050						4,050
Stock exercised/vested								248
Stock repurchased								(29,683)
Contributions (distributions)									(1,502)
Other comprehensive loss, net of tax	$ (86,080)				(86,080)		4,050		0
End of period at Mar. 31, 2021			988,288	8,556,621	(148,252)	199,584	(347,836)	(3,087,860)	15,684
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock dividends, per share, cash paid (in dollars per share)	$ 0.08
Cumulative effect adjustment resulting from changes in accounting principles			988,288	8,556,621	(148,252)	199,584	(347,836)	(3,087,860)	15,684
Cumulative effect adjustment resulting from changes in accounting principles	$ 6,667,730	105,803	981,104	9,015,135	(281,955)	90,900	(372,855)	(3,167,076)	14,719
Beginning of period at Dec. 31, 2021	6,667,730	$ 105,803	981,104	9,015,135	(281,955)	90,900	(372,855)	(3,167,076)	14,719
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock units issued			(530)
Restricted stock units expensed			11,438
Net income before noncontrolling interests	593,030			590,638					2,392
Dividends ($0.09 and $0.08, per share, respectively)				(22,983)
Change in unrealized losses on securities without an allowance for expected credit losses	(423,545)					(423,839)
Change in unrealized gains on securities with an allowance for expected credit losses						293
Net change in period	56,272						56,272
Stock exercised/vested								203
Stock repurchased								0
Contributions (distributions)									6,186
Other comprehensive loss, net of tax	(367,273)				(367,273)		56,272		(1)
End of period at Mar. 31, 2022	$ 6,887,799		992,012	9,582,790	(649,229)	(332,646)	(316,583)	(3,166,873)	23,296
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock dividends, per share, cash paid (in dollars per share)	$ 0.09
Cumulative effect adjustment resulting from changes in accounting principles	$ 6,887,799		$ 992,012	$ 9,582,790	$ (649,229)	$ (332,646)	$ (316,583)	$ (3,166,873)	$ 23,296

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FROM OPERATING ACTIVITIES:
Net income to common stockholders	$ 590,638	$ 229,525
Adjustments to reconcile net income to net cash from operating activities:
Net investment gains	(366,265)	(34,839)
Depreciation and amortization	24,631	33,543
Noncontrolling interests	2,392	2,191
Investment funds	(52,012)	(38,935)
Stock incentive plans	11,438	11,817
Change in:
Arbitrage trading account	(7,215)	(16,108)
Premiums and fees receivable	(69,704)	(96,290)
Reinsurance accounts	(2,643)	(105,589)
Deferred policy acquisition costs	(39,220)	(38,577)
Income taxes	123,763	47,372
Reserves for losses and loss expenses	316,065	303,305
Unearned premiums	167,522	219,920
Other	(221,708)	(206,345)
Net cash from operating activities	477,682	310,990
CASH FROM (USED IN) INVESTING ACTIVITIES:
Proceeds from sale of fixed maturity securities	408,221	1,115,114
Proceeds from sale of equity securities	9,227	57,457
(Contributions) distributions from investment funds	(13,423)	36,236
Proceeds from maturities and prepayments of fixed maturity securities	1,440,457	1,623,357
Purchase of fixed maturity securities	(2,200,214)	(4,118,161)
Purchase of equity securities	(100,356)	(69,181)
Real estate sold	28,141	9,787
Change in loans receivable	332	9,256
Net purchases of property, furniture and equipment	(9,114)	(10,872)
Change in balances due to security brokers	98,058	151,776
Cash received in connection with business disposition	906,789	0
Payment for business purchased net of cash acquired	(49,572)	0
Other	17	0
Net cash from (used in) investing activities	518,563	(1,195,231)
CASH (USED IN) FROM FINANCING ACTIVITIES:
Repayment of senior notes and other debt	(426,503)	(110,000)
Net payments for stock options exercised	(327)	(525)
Net proceeds from issuance of debt	1,186	691,213
Cash dividends to common stockholders	(22,983)	(21,285)
Purchase of common treasury shares	0	(29,683)
Other, net	(2,703)	(1,503)
Net cash (used in) from financing activities	(451,330)	528,217
Net impact on cash due to change in foreign exchange rates	1,083	(1,431)
Net change in cash and cash equivalents	545,998	(357,455)
Cash and cash equivalents at beginning of period	1,568,843	2,372,366
Cash and cash equivalents at end of period	$ 2,114,841	$ 2,014,911

XML

Statements of Cash Flows	3 Months Ended
	Mar. 31, 2022
Supplemental Cash Flow Elements [Abstract]
Statements of Cash Flows	Statements of Cash Flows    Interest payments were $52,899,000 and $45,393,000 for the three months ended March 31, 2022 and 2021, respectively. No i

XML

Consolidated Statements of Comprehensive Income

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Consolidated Statements of Comprehensive Income

Consolidated Statements of Comprehensive Income

    The following table presents the components of the changes in accumulated other comprehensive (loss) income ("AOCI"):

(In thousands)	Unrealized Investment Gains (Losses)			Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
As of and for the three months ended March 31, 2022
Changes in AOCI
Beginning of period	$	90,900		$	(372,855)	$	(281,955)
Other comprehensive (loss) income before reclassifications	(433,136)			56,272		(376,864)
Amounts reclassified from AOCI	9,591			—		9,591
Other comprehensive (loss) income	(423,545)			56,272		(367,273)
Unrealized investment gain related to noncontrolling interest	(1)			—		(1)
End of period	$	(332,646)		$	(316,583)	$	(649,229)
Amounts reclassified from AOCI
Pre-tax	$	12,141	(1)	$	—	$	12,141
Tax effect	(2,550)		(2)	—		(2,550)
After-tax amounts reclassified	$	9,591		$	—	$	9,591
Other comprehensive (loss) income
Pre-tax	$	(539,449)		$	56,272	$	(483,177)
Tax effect	115,904			—		115,904
Other comprehensive (loss) income	$	(423,545)		$	56,272	$	(367,273)

As of and for the three months ended March 31, 2021
Changes in AOCI
Beginning of period	$	289,714		$	(351,886)	$	(62,172)
Other comprehensive (loss) income before reclassifications	(98,991)			4,050		(94,941)
Amounts reclassified from AOCI	8,861			—		8,861
Other comprehensive (loss) income	(90,130)			4,050		(86,080)
Unrealized investment gain related to noncontrolling interest	—			—		—
End of period	$	199,584		$	(347,836)	$	(148,252)
Amounts reclassified from AOCI
Pre-tax	$	11,216	(1)	$	—	$	11,216
Tax effect	(2,355)		(2)	—		(2,355)
After-tax amounts reclassified	$	8,861		$	—	$	8,861
Other comprehensive (loss) income
Pre-tax	$	(113,735)		$	4,050	$	(109,685)
Tax effect	23,605			—		23,605
Other comprehensive (loss) income	$	(90,130)		$	4,050	$	(86,080)

____________

(1) Net investment gains (losses) in the consolidated statements of income.

(2) Income tax expense in the consolidated statements of income.

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General

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

General

General

    The unaudited consolidated financial statements, which include the accounts of W. R. Berkley Corporation and its subsidiaries (the “Company”), have been prepared on the basis of U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all the information and notes required by GAAP for annual financial statements. The unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring items, which are necessary to present fairly the Company’s financial position and results of operations on a basis consistent with the prior audited consolidated financial statements. Operating results for interim periods are not necessarily indicative of the results that may be expected for the year. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the revenues and expenses reflected during the reporting period. For further information related to areas of judgment and estimates and other information necessary to understand the Company’s financial position and results of operations, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Reclassifications have been made in the 2021 financial statements as originally reported to conform to the presentation of the 2022 financial statements. Shares outstanding and per share amounts have been adjusted to reflect the 3-for-2 common stock split effected on March 23, 2022.

The income tax provision has been computed based on the Company’s estimated annual effective tax rate. The effective income tax rate differs from the federal income tax rate of 21% primarily due to a net reduction to the Company’s valuation allowance against foreign tax credits and foreign net operating losses, which was partially offset by state income taxes.

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Per Share Data

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Per Share Data

Per Share Data

    The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period (including 11,592,699 and 11,651,811 common shares held in a grantor trust as of March 31, 2022 and 2021, respectively). The common shares held in the grantor trust are for delivery upon settlement of vested but mandatorily deferred restricted stock units ("RSUs"). Shares held by the grantor trust do not affect diluted shares outstanding since the shares deliverable under vested RSUs were already included in diluted shares outstanding. Diluted EPS is based upon the weighted average number of basic and common equivalent shares outstanding during the period and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect.

    The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows:

	For the Three Months Ended March 31,
(In thousands)	2022	2021
Basic	276,772	277,793
Diluted	279,157	280,245

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Recent Accounting Pronouncements and Accounting Policies

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Recent Accounting Pronouncements and Accounting Policies

Recent Accounting Pronouncements and Accounting Policies

Recently adopted accounting pronouncements:

    All accounting and reporting standards that became effective in 2022 were either not applicable to the Company or their adoption did not have a material impact on the Company.

Accounting and reporting standards that are not yet effective:

    All recently issued but not yet effective accounting and reporting standards are either not applicable to the Company or are not expected to have a material impact on the Company.

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Acquisitions

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisitions

In March 2022, the Company acquired an 80.0% ownership interest for $51.1 million in a company engaged in residential and commercial textiles. The fair value of the assets acquired and liabilities assumed have been estimated based on a preliminary valuation. The fair values of the assets and liabilities will be adjusted, as needed, following completion of the final valuation.

    The following table summarizes the initial estimated fair value of net assets acquired and liabilities assumed for the business combination completed in 2022:

(In thousands)	2022
Cash and cash equivalents	$	1,564
Real estate, furniture and equipment	2,527
Intangible assets	48,787
Other assets	11,275
Total assets acquired	64,153
Other liabilities assumed	(5,417)
Noncontrolling interest	(7,600)
Net assets acquired	$	51,136

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Investments In Fixed Maturity Securities

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investments In Fixed Maturity Securities

Investments in Fixed Maturity Securities

    At March 31, 2022 and December 31, 2021, investments in fixed maturity securities were as follows:

(In thousands)	Amortized Cost		Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
					Gains		Losses
March 31, 2022
Held to maturity:
State and municipal	$	70,165	$	(378)	$	7,094	$	—	$	76,881	$	69,787
Residential mortgage-backed	4,455		—		324		—		4,779		4,455
Total held to maturity	74,620		(378)		7,418		—		81,660		74,242
Available for sale:
U.S. government and government agency	837,167		—		2,397		(20,716)		818,848		818,848
State and municipal:
Special revenue	1,948,586		—		12,944		(44,803)		1,916,727		1,916,727
State general obligation	378,408		—		7,043		(6,574)		378,877		378,877
Pre-refunded	165,882		—		6,216		—		172,098		172,098
Corporate backed	175,070		—		1,407		(4,472)		172,005		172,005
Local general obligation	410,058		—		11,184		(5,075)		416,167		416,167
Total state and municipal	3,078,004		—		38,794		(60,924)		3,055,874		3,055,874
Mortgage-backed:
Residential	1,179,468		—		2,417		(60,650)		1,121,235		1,121,235
Commercial	266,921		—		339		(3,759)		263,501		263,501
Total mortgage-backed	1,446,389		—		2,756		(64,409)		1,384,736		1,384,736
Asset-backed	4,319,535		—		1,459		(63,573)		4,257,421		4,257,421
Corporate:
Industrial	3,373,710				12,708		(115,614)		3,270,804		3,270,804
Financial	1,747,275		—		4,612		(45,155)		1,706,732		1,706,732
Utilities	422,354		—		1,806		(14,434)		409,726		409,726
Other	206,526		—		47		(5,328)		201,245		201,245
Total corporate	5,749,865		—		19,173		(180,531)		5,588,507		5,588,507
Foreign government	1,333,123		(26,153)		3,411		(63,813)		1,246,568		1,246,568
Total available for sale	16,764,083		(26,153)		67,990		(453,966)		16,351,954		16,351,954
Total investments in fixed maturity securities	$	16,838,703	$	(26,531)	$	75,408	$	(453,966)	$	16,433,614	$	16,426,196

____________

(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors.

(In thousands)	Amortized Cost		Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
					Gains		Losses
December 31, 2021
Held to maturity:
State and municipal	$	69,539	$	(387)	$	10,813	$	—	$	79,965	$	69,152
Residential mortgage-backed	4,829		—		632		—		5,461		4,829
Total held to maturity	74,368		(387)		11,445		—		85,426		73,981
Available for sale:
U.S. government and government agency	851,128		—		8,509		(4,294)		855,343		855,343
State and municipal:
Special revenue	2,016,382		—		62,961		(5,706)		2,073,637		2,073,637
State general obligation	388,110		—		23,152		(1,015)		410,247		410,247
Pre-refunded	202,633		—		14,891		(574)		216,950		216,950
Corporate backed	166,943		—		7,191		(1,532)		172,602		172,602
Local general obligation	401,974		—		29,455		(732)		430,697		430,697
Total state and municipal	3,176,042		—		137,650		(9,559)		3,304,133		3,304,133
Mortgage-backed:
Residential	940,744		—		9,896		(11,321)		939,319		939,319
Commercial	125,709		—		3,388		(341)		128,756		128,756
Total mortgage-backed securities	1,066,453		—		13,284		(11,662)		1,068,075		1,068,075
Asset-backed	4,504,950		—		4,409		(18,794)		4,490,565		4,490,565
Corporate:
Industrial	3,231,520		(16)		62,751		(21,092)		3,273,163		3,273,163
Financial	1,739,282		—		30,709		(6,591)		1,763,400		1,763,400
Utilities	396,242		—		13,262		(3,202)		406,302		406,302
Other	154,210		—		125		(1,525)		152,810		152,810
Total corporate	5,521,254		(16)		106,847		(32,410)		5,595,675		5,595,675
Foreign government	1,277,109		(22,222)		7,508		(47,494)		1,214,901		1,214,901
Total available for sale	16,396,936		(22,238)		278,207		(124,213)		16,528,692		16,528,692
Total investments in fixed maturity securities	$	16,471,304	$	(22,625)	$	289,652	$	(124,213)	$	16,614,118	$	16,602,673

____________

(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors.

The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	387	$	798
Provision for expected credit losses	(9)		(68)
Allowance for expected credit losses, end of period	$	378	$	730

The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the three months ended March 31, 2022 and 2021:

	2022						2021
(In thousands)	Foreign Government		Corporate		Total		Foreign Government		Corporate		Total
Allowance for expected credit losses, beginning of period	$	22,222	$	16	$	22,238	$	1,264	$	518	$	1,782
Expected credit losses on securities for which credit losses were not previously recorded	484		—		484		18,990		16		19,006
Expected credit losses (gains) on securities for which credit losses were previously recorded	3,447		(16)		3,431		(261)		(513)		(774)
Reduction due to disposals	—		—		—		—		(5)		(5)
Allowance for expected credit losses, end of period	$	26,153	$	—	$	26,153	$	19,993	$	16	$	20,009

During the three months ended March 31, 2022, the Company increased the allowance for expected credit losses for available for sale securities utilizing its credit loss assessment process and inputs used in its credit loss model, primarily due

to foreign government securities. During the three months ended March 31, 2021, the Company increased the allowance for expected credit losses for available for sale securities primarily due to foreign government securities that had no reserve in prior periods.

The amortized cost and fair value of fixed maturity securities at March 31, 2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations.  

(In thousands)	Amortized Cost (1)		Fair Value
Due in one year or less	$	1,472,865	$	1,461,188
Due after one year through five years	7,903,303		7,756,952
Due after five years through ten years	4,029,040		3,898,727
Due after ten years	1,982,273		1,927,232
Mortgage-backed securities	1,450,844		1,389,515
Total	$	16,838,325	$	16,433,614

________________

(1) Amortized cost is reduced by the allowance for expected credit losses of $378 thousand related to held to maturity securities.    

At March 31, 2022 and December 31, 2021, there were no investments that exceeded 10% of common stockholders' equity, other than investments in United States government and government agency securities.

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Investments in Equity Securities

3 Months Ended

Mar. 31, 2022

Debt Securities, Available-for-sale [Line Items]

Investments in Equity Securities

Investments in Fixed Maturity Securities

    At March 31, 2022 and December 31, 2021, investments in fixed maturity securities were as follows:

(In thousands)	Amortized Cost		Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
					Gains		Losses
March 31, 2022
Held to maturity:
State and municipal	$	70,165	$	(378)	$	7,094	$	—	$	76,881	$	69,787
Residential mortgage-backed	4,455		—		324		—		4,779		4,455
Total held to maturity	74,620		(378)		7,418		—		81,660		74,242
Available for sale:
U.S. government and government agency	837,167		—		2,397		(20,716)		818,848		818,848
State and municipal:
Special revenue	1,948,586		—		12,944		(44,803)		1,916,727		1,916,727
State general obligation	378,408		—		7,043		(6,574)		378,877		378,877
Pre-refunded	165,882		—		6,216		—		172,098		172,098
Corporate backed	175,070		—		1,407		(4,472)		172,005		172,005
Local general obligation	410,058		—		11,184		(5,075)		416,167		416,167
Total state and municipal	3,078,004		—		38,794		(60,924)		3,055,874		3,055,874
Mortgage-backed:
Residential	1,179,468		—		2,417		(60,650)		1,121,235		1,121,235
Commercial	266,921		—		339		(3,759)		263,501		263,501
Total mortgage-backed	1,446,389		—		2,756		(64,409)		1,384,736		1,384,736
Asset-backed	4,319,535		—		1,459		(63,573)		4,257,421		4,257,421
Corporate:
Industrial	3,373,710				12,708		(115,614)		3,270,804		3,270,804
Financial	1,747,275		—		4,612		(45,155)		1,706,732		1,706,732
Utilities	422,354		—		1,806		(14,434)		409,726		409,726
Other	206,526		—		47		(5,328)		201,245		201,245
Total corporate	5,749,865		—		19,173		(180,531)		5,588,507		5,588,507
Foreign government	1,333,123		(26,153)		3,411		(63,813)		1,246,568		1,246,568
Total available for sale	16,764,083		(26,153)		67,990		(453,966)		16,351,954		16,351,954
Total investments in fixed maturity securities	$	16,838,703	$	(26,531)	$	75,408	$	(453,966)	$	16,433,614	$	16,426,196

____________

(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors.

(In thousands)	Amortized Cost		Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
					Gains		Losses
December 31, 2021
Held to maturity:
State and municipal	$	69,539	$	(387)	$	10,813	$	—	$	79,965	$	69,152
Residential mortgage-backed	4,829		—		632		—		5,461		4,829
Total held to maturity	74,368		(387)		11,445		—		85,426		73,981
Available for sale:
U.S. government and government agency	851,128		—		8,509		(4,294)		855,343		855,343
State and municipal:
Special revenue	2,016,382		—		62,961		(5,706)		2,073,637		2,073,637
State general obligation	388,110		—		23,152		(1,015)		410,247		410,247
Pre-refunded	202,633		—		14,891		(574)		216,950		216,950
Corporate backed	166,943		—		7,191		(1,532)		172,602		172,602
Local general obligation	401,974		—		29,455		(732)		430,697		430,697
Total state and municipal	3,176,042		—		137,650		(9,559)		3,304,133		3,304,133
Mortgage-backed:
Residential	940,744		—		9,896		(11,321)		939,319		939,319
Commercial	125,709		—		3,388		(341)		128,756		128,756
Total mortgage-backed securities	1,066,453		—		13,284		(11,662)		1,068,075		1,068,075
Asset-backed	4,504,950		—		4,409		(18,794)		4,490,565		4,490,565
Corporate:
Industrial	3,231,520		(16)		62,751		(21,092)		3,273,163		3,273,163
Financial	1,739,282		—		30,709		(6,591)		1,763,400		1,763,400
Utilities	396,242		—		13,262		(3,202)		406,302		406,302
Other	154,210		—		125		(1,525)		152,810		152,810
Total corporate	5,521,254		(16)		106,847		(32,410)		5,595,675		5,595,675
Foreign government	1,277,109		(22,222)		7,508		(47,494)		1,214,901		1,214,901
Total available for sale	16,396,936		(22,238)		278,207		(124,213)		16,528,692		16,528,692
Total investments in fixed maturity securities	$	16,471,304	$	(22,625)	$	289,652	$	(124,213)	$	16,614,118	$	16,602,673

____________

(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors.

The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	387	$	798
Provision for expected credit losses	(9)		(68)
Allowance for expected credit losses, end of period	$	378	$	730

The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the three months ended March 31, 2022 and 2021:

	2022						2021
(In thousands)	Foreign Government		Corporate		Total		Foreign Government		Corporate		Total
Allowance for expected credit losses, beginning of period	$	22,222	$	16	$	22,238	$	1,264	$	518	$	1,782
Expected credit losses on securities for which credit losses were not previously recorded	484		—		484		18,990		16		19,006
Expected credit losses (gains) on securities for which credit losses were previously recorded	3,447		(16)		3,431		(261)		(513)		(774)
Reduction due to disposals	—		—		—		—		(5)		(5)
Allowance for expected credit losses, end of period	$	26,153	$	—	$	26,153	$	19,993	$	16	$	20,009

During the three months ended March 31, 2022, the Company increased the allowance for expected credit losses for available for sale securities utilizing its credit loss assessment process and inputs used in its credit loss model, primarily due

to foreign government securities. During the three months ended March 31, 2021, the Company increased the allowance for expected credit losses for available for sale securities primarily due to foreign government securities that had no reserve in prior periods.

The amortized cost and fair value of fixed maturity securities at March 31, 2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations.  

(In thousands)	Amortized Cost (1)		Fair Value
Due in one year or less	$	1,472,865	$	1,461,188
Due after one year through five years	7,903,303		7,756,952
Due after five years through ten years	4,029,040		3,898,727
Due after ten years	1,982,273		1,927,232
Mortgage-backed securities	1,450,844		1,389,515
Total	$	16,838,325	$	16,433,614

________________

(1) Amortized cost is reduced by the allowance for expected credit losses of $378 thousand related to held to maturity securities.    

At March 31, 2022 and December 31, 2021, there were no investments that exceeded 10% of common stockholders' equity, other than investments in United States government and government agency securities.

Real estate

Debt Securities, Available-for-sale [Line Items]

Investments in Equity Securities

Investments in Equity Securities

    At March 31, 2022 and December 31, 2021, investments in equity securities were as follows:

(In thousands)	Cost		Gross Unrealized				Fair Value		Carrying Value
			Gains		Losses
March 31, 2022
Common stocks	$	699,566	$	191,842	$	(8,091)	$	883,317	$	883,317
Preferred stocks	262,513		2,917		(22,256)		243,174		243,174
Total	$	962,079	$	194,759	$	(30,347)	$	1,126,491	$	1,126,491
December 31, 2021
Common stocks	$	619,896	$	92,401	$	(16,894)	$	695,403	$	695,403
Preferred stocks	250,149		7,874		(12,183)		245,840		245,840
Total	$	870,045	$	100,275	$	(29,077)	$	941,243	$	941,243

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Arbitrage Trading Account

3 Months Ended

Mar. 31, 2022

Debt Securities, Trading, and Equity Securities, FV-NI [Abstract]

Arbitrage Trading Account

Arbitrage Trading Account

    At March 31, 2022 and December 31, 2021, the fair and carrying values of the arbitrage trading account were $1,189 million and $1,180 million, respectively. The primary focus of the trading account is merger arbitrage. Merger arbitrage is the business of investing in the securities of publicly held companies which are the targets in announced tender offers and mergers. Arbitrage investing differs from other types of investing in its focus on transactions and events believed likely to bring about a change in value over a relatively short time period (usually four months or less).

    The Company uses put options and call options in order to mitigate the impact of potential changes in market conditions on the merger arbitrage trading account. These options are reported at fair value. As of March 31, 2022, the fair value of short option contracts outstanding was $242 thousand (notional amount of $29.2 million). Other than with respect to the use of these trading account securities, the Company does not make use of derivatives.

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Net Investment Income

3 Months Ended

Mar. 31, 2022

Net Investment Income [Abstract]

Net Investment Income

Net Investment Income

    Net investment income consisted of the following: 

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Investment income earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	101,284	$	94,677
Investment funds	52,012		38,935
Arbitrage trading account	9,187		19,074
Equity securities	10,856		6,180
Real estate	2,146		1,161
Gross investment income	175,485		160,027
Investment expense	(1,973)		(1,450)
Net investment income	$	173,512	$	158,577

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Investment Funds

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investment Funds

Investment Funds

    The Company evaluates whether it is an investor in a variable interest entity ("VIE"). Such entities do not have sufficient equity at risk to finance their activities without additional subordinated financial support, or the equity investors, as a group, do not have the characteristics of a controlling financial interest (primary beneficiary). The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE's capital structure, contractual terms, nature of the VIE's operations and purpose, and the Company's relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE and on an ongoing basis. The Company is not the primary beneficiary in any of its investment funds, and accordingly, carries its interests in investment funds under the equity method of accounting.    

    The Company’s maximum exposure to loss with respect to these investments is limited to the carrying amount reported on the Company’s consolidated balance sheet and its unfunded commitments, which were $615 million as of March 31, 2022.

    Investment funds consisted of the following:

	Carrying Value as of				Income (Loss) from Investment Funds
	March 31,		December 31,		For the Three Months Ended March 31,
(In thousands)	2022		2021		2022		2021
Financial services	$	454,701	$	431,818	$	25,932	$	17,142
Transportation	341,022		336,688		11,179		6,228
Real Estate	283,897		273,690		16,364		4,434
Energy	136,401		150,224		(892)		3,320
Other funds	329,627		288,192		(569)		7,811
Total	$	1,545,648	$	1,480,612	$	52,014	$	38,935

    The Company's share of the earnings or losses from investment funds is generally reported on a one-quarter lag in order to facilitate the timely completion of the Company's consolidated financial statements.

Financial services investment funds include the Company’s minority investment in Lifson Re, a Bermuda reinsurance company. Effective January 1, 2021, Lifson Re participates on a fully collateralized basis in a majority of the Company’s reinsurance placements for a 22.5% share of placed amounts. This pertains to all traditional reinsurance/retrocessional placements for both property and casualty business where there is more than one open market reinsurer participating. For the three months ended March 31, 2022 and 2021, the Company has ceded approximately $89 million and $53 million, respectively, of written premiums to Lifson Re.

Other funds include deferred compensation trust assets of $32 million and $34 million as of March 31, 2022 and December 31, 2021, respectively. These assets support other liabilities reflected in the balance sheet of an equal amount for employees who have elected to defer a portion of their compensation. The change in the net asset value of the trust is recorded in other funds within net investment income with an offsetting equal amount within corporate expenses.

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Real Estate

3 Months Ended

Mar. 31, 2022

Real Estate [Abstract]

Real Estate

Real Estate

    Investment in real estate represents directly owned property held for investment, as follows:

	Carrying Value
	March 31,		December 31,
(In thousands)	2022		2021
Properties in operation	$	1,052,198	$	1,626,826
Properties under development	223,959		225,682
Total	$	1,276,157	$	1,852,508

    As of March 31, 2022, properties in operation included a long-term ground lease in Washington, D.C., an office complex in New York City and the completed portion of a mixed-use project in Washington D.C. Properties in operation are net of accumulated depreciation and amortization of $32,031,000 and $57,391,000 as of March 31, 2022 and December 31, 2021, respectively. Related depreciation expense was $4,788,000 and $4,890,000 for the three months ended March 31, 2022 and 2021, respectively. Future minimum rental income expected on operating leases relating to properties in operation is

$24,004,686 in 2022, $30,750,724 in 2023, $30,466,934 in 2024, $27,802,134 in 2025, $25,807,966 in 2026, $24,984,457 in 2027 and $476,939,991 thereafter.

During the first quarter of 2022, the Company sold a real estate investment in London.

    A mixed-use project in Washington, D.C. has been under development in 2022 and 2021, with the completed portion reported in properties in operation as of March 31, 2022.

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Loans Receivable

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Loans Receivable

Loans Receivable

At March 31, 2022 and December 31, 2021, loans receivable were as follows:

(In thousands)	March 31, 2022		December 31, 2021
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	89,213	$	89,431
Commercial loans	25,884		25,741
Total	$	115,097	$	115,172
Fair value:
Real estate loans	$	89,672	$	90,793
Commercial loans	25,884		25,741
Total	$	115,556	$	116,534

The real estate loans are secured by commercial and residential real estate primarily located in New York. These loans generally earn interest at fixed or stepped interest rates and have maturities through 2026. The commercial loans are with small business owners who have secured the related financing with the assets of the business. Commercial loans primarily earn interest on a fixed basis and have varying maturities generally not exceeding 10 years.

Loans receivable in non-accrual status were none and $0.2 million as of March 31, 2022 and December 31, 2021, respectively.

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the three months ended March 31, 2022 and 2021:

	2022						2021
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Allowance for expected credit losses, beginning of period	$	1,362	$	356	$	1,718	$	1,683	$	3,754	$	5,437
Provision for expected credit losses	(67)		(222)		(289)		(75)		(1,164)		(1,239)
Allowance for expected credit losses, end of period	$	1,295	$	134	$	1,429	$	1,608	$	2,590	$	4,198

During the three months ended March 31, 2022, the Company reduced the allowance primarily due to the decrease in the duration of the loan portfolio.

The Company monitors the performance of its loans receivable and assesses the ability of the borrower to pay principal and interest based upon loan structure, underlying property values, cash flow and related financial and operating performance of the property and market conditions.

    In evaluating the real estate loans, the Company considers their credit quality indicators, including loan to value ratios, which compare the outstanding loan amount to the estimated value of the property, the borrower’s financial condition and performance with respect to loan terms, the position in the capital structure, the overall leverage in the capital structure and other market conditions.

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Net Investment Gains (Losses)

3 Months Ended

Mar. 31, 2022

Realized and Unrealized Investment Gains (Losses) [Abstract]

Net Investment Gains (Losses)

Net Investment Gains (Losses)

     Net investment gains (losses) were as follows:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Net investment gains (losses):
Fixed maturity securities:
Gains	$	1,705	$	8,240
Losses	(2,984)		(2,071)
Equity securities (1):
Net realized gains on investment sales	905		8,572
Change in unrealized gains (losses)	93,213		(24,335)
Investment funds	(2,162)		47,671
Real estate (2)	286,192		12,909
Loans receivable	(32)		—
Other	(6,955)		773
Net realized and unrealized gains on investments in earnings before allowance for expected credit losses	369,882		51,759
Change in allowance for expected credit losses on investments:
Fixed maturity securities	(3,906)		(18,159)
Loans receivable	289		1,239
Change in allowance for expected credit losses on investments	(3,617)		(16,920)
Net investment gains	366,265		34,839
Income tax expense	(78,442)		(5,887)
After-tax net investment gains	$	287,823	$	28,952

Change in unrealized investment losses on available for sale securities:
Fixed maturity securities without allowance for expected credit losses	$	(540,263)	$	(122,568)
Fixed maturity securities with allowance for expected credit losses	293		10,355
Investment funds	469		(1,020)
Other	52		(502)
Total change in unrealized investment losses	(539,449)		(113,735)
Income tax benefit	115,904		23,605
Noncontrolling interests	(1)		—
After-tax change in unrealized investment losses of available for sale securities	$	(423,546)	$	(90,130)

______________________

(1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized (losses) gains consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.

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Fixed Maturity Securities In An Unrealized Loss Position

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Fixed Maturity Securities In An Unrealized Loss Position

Fixed Maturity Securities in an Unrealized Loss Position

    The following tables summarize all fixed maturity securities in an unrealized loss position at March 31, 2022 and December 31, 2021 by the length of time those securities have been continuously in an unrealized loss position:

	Less Than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
March 31, 2022
U.S. government and government agency	$	547,027	$	18,521	$	36,307	$	2,195	$	583,334	$	20,716
State and municipal	1,360,055		51,579		95,853		9,345		1,455,908		60,924
Mortgage-backed	1,069,979		49,408		140,480		15,001		1,210,459		64,409
Asset-backed	3,898,607		61,254		186,663		2,319		4,085,270		63,573
Corporate	3,805,020		148,708		381,306		31,823		4,186,326		180,531
Foreign government	809,004		29,721		211,576		34,092		1,020,580		63,813
Fixed maturity securities	$	11,489,692	$	359,191	$	1,052,185	$	94,775	$	12,541,877	$	453,966
December 31, 2021
U.S. government and government agency	$	487,712	$	4,026	$	17,021	$	268	$	504,733	$	4,294
State and municipal	502,333		7,403		29,547		2,156		531,880		9,559
Mortgage-backed	558,751		6,900		106,130		4,762		664,881		11,662
Asset-backed	3,832,944		18,503		75,385		291		3,908,329		18,794
Corporate	2,582,860		29,322		51,095		3,088		2,633,955		32,410
Foreign government	758,975		15,793		82,057		31,701		841,032		47,494
Fixed maturity securities	$	8,723,575	$	81,947	$	361,235	$	42,266	$	9,084,810	$	124,213

    Substantially all of the securities in an unrealized loss position are rated investment grade, except for the securities in the foreign government classification. A significant amount of the unrealized loss on foreign government securities is the result of changes in currency exchange rates. 

    A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at March 31, 2022 is presented in the table below:

($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Foreign government	37	$	132,306	$	30,753
Corporate	12	30,071		3,158
State and municipal	1	13,583		1,422
Mortgage-backed	7	1,785		48
Asset-backed	1	37		5
Total	58	$	177,782	$	35,386

    For fixed maturity securities that management does not intend to sell or to be required to sell, the portion of the decline in value that is considered to be due to credit factors is recognized in earnings, and the portion of the decline in value that is considered to be due to non-credit factors is recognized in other comprehensive income.

     The Company has evaluated its fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default under financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

    The Company’s fixed maturity available for sale securities, equity securities and its arbitrage trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable.

Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available.

    Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation.

    If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information.

    For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate.

    The following tables present the assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 by level:

(In thousands)	Total		Level 1		Level 2		Level 3
March 31, 2022
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	818,848	$	—	$	818,848	$	—
State and municipal	3,055,874		—		3,055,874		—
Mortgage-backed	1,384,736		—		1,384,736		—
Asset-backed	4,257,421		—		4,257,421		—
Corporate	5,588,507		—		5,588,507		—
Foreign government	1,246,568		—		1,246,568		—
Total fixed maturity securities available for sale	16,351,954		—		16,351,954		—
Equity securities:
Common stocks	883,317		877,387		1,230		4,700
Preferred stocks	243,174		—		231,203		11,971
Total equity securities	1,126,491		877,387		232,433		16,671
Arbitrage trading account	1,188,910		1,186,353		2,557		—
Total	$	18,667,355	$	2,063,740	$	16,586,944	$	16,671
Liabilities:
Trading account securities sold but not yet purchased	$	241	$	241	$	—	$	—
December 31, 2021
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	855,343	$	—	$	855,343	$	—
State and municipal	3,304,133		—		3,304,133		—
Mortgage-backed	1,068,075		—		1,068,075		—
Asset-backed	4,490,565		—		4,490,565		—
Corporate	5,595,675		—		5,595,675		—
Foreign government	1,214,901		—		1,214,901		—
Total fixed maturity securities available for sale	16,528,692		—		16,528,692		—
Equity securities:
Common stocks	695,403		684,470		1,639		9,294
Preferred stocks	245,840		—		234,544		11,296
Total equity securities	941,243		684,470		236,183		20,590
Arbitrage trading account	1,179,606		1,153,079		26,527		—
Total	$	18,649,541	$	1,837,549	$	16,791,402	$	20,590
Liabilities:
Trading account securities sold but not yet purchased	$	1,169	$	1,137	$	32	$	—

    The following tables summarize changes in Level 3 assets and liabilities for the three months ended March 31, 2022 and for the year ended December 31, 2021:

Gains (Losses) Included In:
(In thousands)	Beginning Balance		Earnings (Losses)		Other Comprehensive Income (Losses)		Impairments		Purchases		Sales		Paydowns / Maturities		Transfers In / (Out)		Ending Balance
Three Months Ended March 31, 2022
Assets:
Equity securities:
Common stocks	$	9,294	$	(4,594)	$	—	$	—	$	—	$	—	$	—	$	—	$	4,700
Preferred stocks	11,296		—		—		—		675		—		—		—		11,971
Total	20,590		(4,594)		—		—		675		—		—		—		16,671
Arbitrage trading account	—		—		—		—		—		—		—		—		—
Total	$	20,590	$	(4,594)	$	—	$	—	$	675	$	—	$	—	$	—	$	16,671
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	(1)	$	—	$	—	$	—	$	—	$	—	$	1	$	—
Year Ended December 31, 2021
Assets:
Fixed maturities securities available for sale:
Corporate	$	1,000	$	—	$	—	$	—	$	—	$	(1,000)	$	—	$	—	$	—
Total	1,000		—		—		—		—		(1,000)		—		—		—
Equity securities:
Common stocks	9,215		640		—		—		—		(561)		—		—		9,294
Preferred stocks	9,331		(35)		—		—		2,000		—		—		—		11,296
Total	18,546		605		—		—		2,000		(561)		—		—		20,590
Arbitrage trading account	—		8		—		—		—		(8)		—		—		—
Total	$	19,546	$	613	$	—	$	—	$	2,000	$	(1,569)	$	—	$	—	$	20,590
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	1	$	—	$	—	$	(1)	$	—	$	—	$	—	$	—

    For the three months ended March 31, 2022, there was one security transferred into Level 3. For the year ended December 31, 2021, there were no securities transferred into or out of Level 3.

Fair Value of Financial Instruments

    The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	March 31, 2022				December 31, 2021
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	16,426,196	$	16,433,614	$	16,602,673	$	16,614,118
Equity securities	1,126,491		1,126,491		941,243		941,243
Arbitrage trading account	1,188,910		1,188,910		1,179,606		1,179,606
Loans receivable	115,097		115,556		115,172		116,534
Cash and cash equivalents	2,114,841		2,114,841		1,568,843		1,568,843
Due from broker	—		—		20,448		20,448
Liabilities:
Due to broker	77,601		77,601		—		—
Trading account payable to brokers and clearing organizations	56,652		56,652		53,636		53,636
Trading account securities sold but not yet purchased	241		241		1,169		1,169
Senior notes and other debt	1,834,155		1,788,992		2,259,416		2,526,630
Subordinated debentures	1,007,832		957,670		1,007,652		1,095,600

    The estimated fair values of the Company’s fixed maturity securities, equity securities and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 15. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input.

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Reserves for Loss and Loss Expenses

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Reserves for Loss and Loss Expenses

Reserves for Loss and Loss Expenses

    The Company's reserves for losses and loss expenses are comprised of case reserves and incurred but not reported liabilities ("IBNR"). When a claim is reported, a case reserve is established for the estimated ultimate payment based upon known information about the claim. As more information about the claim becomes available over time, case reserves are adjusted up or down as appropriate. Reserves are also established on an aggregate basis to provide for IBNR liabilities and expected loss reserve development on reported claims.

    Loss reserves included in the Company’s financial statements represent management’s best estimates based upon an actuarially derived point estimate and other considerations. The Company uses a variety of actuarial techniques and methods to derive an actuarial point estimate for each operating unit. These methods include paid loss development, incurred loss development, paid and incurred Bornhuetter-Ferguson methods and frequency and severity methods. In circumstances where one actuarial method is considered more credible than the others, that method is used to set the point estimate. The actuarial point estimate may also be based on a judgmental weighting of estimates produced from each of the methods considered. Industry loss experience is used to supplement the Company’s own data in selecting “tail factors” in areas where the Company’s own data is limited. The actuarial data is analyzed by line of business, coverage and accident or policy year, as appropriate, for each operating unit.

    The establishment of the actuarially derived loss reserve point estimate also includes consideration of qualitative factors that may affect the ultimate losses. These qualitative considerations include, among others, the impact of re-underwriting initiatives, changes in the mix of business, changes in distribution sources and changes in policy terms and conditions.

    The key assumptions used to arrive at the best estimate of loss reserves are the expected loss ratios, rate of loss cost inflation, and reported and paid loss emergence patterns. Expected loss ratios represent management’s expectation of losses at the time the business is priced and written, before any actual claims experience has emerged. This expectation is a significant determinant of the estimate of loss reserves for recently written business where there is little paid or incurred loss data to consider. Expected loss ratios are generally derived from historical loss ratios adjusted for the impact of rate changes, loss cost trends and known changes in the type of risks underwritten. Expected loss ratios are estimated for each key line of business within each operating unit. Expected loss cost inflation is particularly important for the long-tail lines, such as excess casualty, and claims with a high medical component, such as workers’ compensation. Reported and paid loss emergence patterns are used to project current reported or paid loss amounts to their ultimate settlement value. Loss development factors are based on the historical emergence patterns of paid and incurred losses, and are derived from the Company’s own experience and industry data. The paid loss emergence pattern is also significant to excess and assumed workers’ compensation reserves because those reserves are discounted to their estimated present value based upon such estimated payout patterns.

    Loss frequency and severity are measures of loss activity that are considered in determining the key assumptions described in our discussion of loss and loss expense reserves, including expected loss ratios, rate of loss cost inflation and reported and paid loss emergence patterns. Loss frequency is a measure of the number of claims per unit of insured exposure, and loss severity is a measure of the average size of claims. Factors affecting loss frequency include the effectiveness of loss controls and safety programs and changes in economic activity or weather patterns. Factors affecting loss severity include changes in policy limits, retentions, rate of inflation and judicial interpretations.

    Another factor affecting estimates of loss frequency and severity is the loss reporting lag, which is the period of time between the occurrence of a loss and the date the loss is reported to the Company. The length of the loss reporting lag affects our ability to accurately predict loss frequency (loss frequencies are more predictable for lines with short reporting lags) as well as the amount of reserves needed for incurred but not reported losses (less IBNR is required for lines with short reporting lags). As a result, loss reserves for lines with short reporting lags are likely to have less variation from initial loss estimates. For lines with short reporting lags, which include commercial automobile, primary workers’ compensation, other liability (claims-made) and property business, the key assumption is the loss emergence pattern used to project ultimate loss estimates from known losses paid or reported to date. For lines of business with long reporting lags, which include other liability (occurrence), products liability, excess workers’ compensation and liability reinsurance, the key assumption is the expected loss ratio since there is often little paid or incurred loss data to consider. Historically, the Company has experienced less variation from its initial loss estimates for lines of businesses with short reporting lags than for lines of business with long reporting lags.

    The key assumptions used in calculating the most recent estimate of the loss reserves are reviewed each quarter and adjusted, to the extent necessary, to reflect the latest reported loss data, current trends and other factors observed.

    The table below provides a reconciliation of the beginning and ending reserve balances:

	March 31,
(In thousands)	2022		2021
Net reserves at beginning of period	$	12,848,362	$	11,620,393
Net provision for losses and loss expenses:
Claims occurring during the current year (1)	1,327,695		1,115,173
Increase (decrease) in estimates for claims occurring in prior years (2) (3)	3,761		(859)
Loss reserve discount accretion	7,796		7,278
Total	1,339,252		1,121,592
Net payments for claims:
Current year	84,598		97,586
Prior years	933,656		794,472
Total	1,018,254		892,058
Foreign currency translation	9,983		(14,779)
Net reserves at end of period	13,179,343		11,835,148
Ceded reserves at end of period	2,543,546		2,245,380
Gross reserves at end of period	$	15,722,889	$	14,080,528

_______________________________________

(1) Claims occurring during the current year are net of loss reserve discounts of $7 million and $5 million for the three months ended March 31, 2022 and 2021, respectively.

(2) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years decreased by $4 million and $5 million for the three months ended March 31, 2022 and 2021, respectively.

(3) For certain retrospectively rated insurance policies and reinsurance agreements, reserve development is offset by additional or return premiums. Favorable development, net of additional and return premiums, was $1 million and $3 million for the three months ended March 31, 2022 and 2021, respectively.

The COVID-19 global pandemic has impacted, and may further impact, the Company’s results through its effect on claim frequency and severity. Loss cost trends have been impacted and may be further impacted by COVID-19-related claims in certain lines of business. Losses incurred from COVID-19-related claims have been offset, to a certain extent, by lower claim frequency in certain lines of our businesses; however, as the economy and legal systems have reopened, the benefit of lower claim frequency has continued to abate. Although as populations continue to be vaccinated against the virus and the effects of the pandemic have receded in many jurisdictions, most particularly the United States, it remains too early to determine the ultimate net impact of COVID-19 on the Company. New variants of the COVID-19 virus, including the “Omicron” variant, continue to create risks with respect to loss costs and the potential for renewed impact of the other effects of COVID-19 associated with economic conditions, inflation, and social distancing and work from home rules.

Most of the COVID-19-related claims reported to the Company to date involve certain short-tailed lines of business, including contingency and event cancellation, business interruption, and film production delay. The Company has also received COVID-19-related claims for longer-tailed casualty lines of business such as workers’ compensation and other liability; however, the estimated incurred loss impact for these reported claims are not material at this time. Given the continuing uncertainty regarding the pandemic's pervasiveness, the future impact that the pandemic may have on claim frequency and severity remains uncertain at this time.

The Company has estimated the potential COVID-19 impact to its contingency and event cancellation, workers’ compensation, and other lines of business under a number of possible scenarios; however, due to COVID-19’s continued evolving impact, there remains a high degree of uncertainty around the Company’s COVID-19 reserves. In addition, should the pandemic continue or worsen as a result of new COVID-19 variants or otherwise, governments in the jurisdictions where we operate may renew their efforts to expand policy coverage terms beyond the policy’s intended coverage. Accordingly, losses arising from these actions, and the other factors described above, could exceed the Company’s reserves established for those related policies.

As of March 31, 2022, the Company had recognized losses for COVID-19-related claims activity, net of reinsurance, of approximately $290 million, of which $246 million relates to the Insurance segment and $44 million relates to the Reinsurance & Monoline Excess segment. Such $290 million of COVID-19-related losses included $268 million of reported losses and $22 million of IBNR. For the three months ended March 31, 2022, the Company recognized current accident year losses for COVID-19-related claims activity, net of reinsurance, of approximately $1 million, which relates to the Insurance segment.

During the three months ended March 31, 2022, favorable prior year development (net of additional and return premiums) of $1 million included $6 million of favorable development for the Insurance segment, largely offset by $5 million of adverse development for the Reinsurance & Monoline Excess segment.

The overall favorable development for the Insurance segment was primarily attributable to favorable development on the 2021 accident year, largely offset by adverse development on the 2015 through 2019 accident years. The favorable development on the 2021 accident year was concentrated in the commercial auto liability, other liability and accident and health (employer stop loss) lines of business. The Company continued to experience lower reported claim frequency in commercial auto and other liability in 2021 relative to historical averages, and lower reported incurred losses relative to our expectations. These trends began in 2020, and were likely caused by the impacts of the COVID-19 pandemic, including, for example, lockdowns, reduced driving/traffic, significant work from home, court closures, and similar reduced activities and travel. While reported claim frequency in these lines increased in 2021 relative to 2020, it remained below the historical levels pre- the start of the COVID-19 pandemic. Due to the ongoing uncertainty regarding the ultimate impacts of the COVID-19 pandemic on accident year 2021 incurred losses, the Company remains cautious in factoring in these trends in setting its initial loss ratio picks for this year. As accident year 2021 has begun to mature, we have recognized some of the favorable reported experience in our ultimate loss picks made as of March 31, 2022. The adverse development on the 2015 through 2019 accident years is concentrated in the other liability line of business, and to a lesser degree professional liability and commercial auto liability. The development is driven by a larger than expected number of large losses reported. The large losses particularly impacted the excess and surplus lines casualty classes of business.

The overall adverse development for the Reinsurance & Monoline Excess segment was driven mainly by adverse development in the non-proportional reinsurance assumed liability and professional liability lines of business, largely offset by favorable development in excess workers' compensation. Both the adverse and favorable development was spread across many prior accident years. The adverse development was associated primarily with our U.S. assumed reinsurance business, and related to accounts insuring construction projects and professional liability exposures. The favorable excess workers' compensation development was driven by continued lower claim frequency and reported losses relative to our expectations and to favorable claim settlements.

During the three months ended March 31, 2021, favorable prior year development (net of additional and return premiums) of $3 million included $6 million of favorable development for the Insurance segment, partially offset by $3 million of adverse development for the Reinsurance & Monoline Excess segment.

The overall favorable development for the Insurance segment was primarily attributable to favorable development on the 2020 accident year, partially offset by adverse development on the 2016 through 2018 accident years. The favorable development on the 2020 accident year was largely concentrated in the commercial auto liability and other liability lines of business. During 2020, the Company achieved larger rate increases in these lines of business than were contemplated in its budget and initial loss ratio selections. The Company also experienced significantly lower reported claim frequency in these lines in 2020 relative to historical averages, and lower reported incurred losses relative to our expectations. We believe that the lower claim frequency and lower reported incurred losses were caused by the impacts of the COVID-19 pandemic, including for example, lockdowns, reduced driving and traffic, work from home, court closures, etc.; however, due to the ongoing uncertainty regarding the ultimate impacts of the pandemic on accident year 2020 incurred losses, the Company did not adjust its reserves based on these lower trends during 2020. As of March 31, 2021, we began to recognize some of the favorable accident year 2020 experience in certain lines in our ultimate loss picks. The adverse development on the 2016 through 2018 accident years is concentrated in the other liability line of business, and is driven by a higher than expected number of large losses reported. The large losses particularly impacted directors and officers liability and excess and surplus lines casualty classes of business.

Prior year reserve development for the Reinsurance & Monoline Excess segment was less significant during the first quarter of 2021, and consisted of small adverse or favorable movements across many lines of business, which largely offset each other. The largest contributor to the slight overall adverse development for the segment was non-proportional reinsurance assumed property business, which was impacted by higher than expected reported losses on property per risk treaties written in the U.S. and U.K. related to accident year 2020.

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Fair Value Of Financial Instruments

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Of Financial Instruments

Fair Value Measurements

    The Company’s fixed maturity available for sale securities, equity securities and its arbitrage trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels, as follows:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

Level 2 - Quoted prices for similar assets or valuations based on inputs that are observable.

Level 3 - Estimates of fair value based on internal pricing methodologies using unobservable inputs. Unobservable inputs are only used to measure fair value to the extent that observable inputs are not available.

    Substantially all of the Company’s fixed maturity securities were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation.

    If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information.

    For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate.

    The following tables present the assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 by level:

(In thousands)	Total		Level 1		Level 2		Level 3
March 31, 2022
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	818,848	$	—	$	818,848	$	—
State and municipal	3,055,874		—		3,055,874		—
Mortgage-backed	1,384,736		—		1,384,736		—
Asset-backed	4,257,421		—		4,257,421		—
Corporate	5,588,507		—		5,588,507		—
Foreign government	1,246,568		—		1,246,568		—
Total fixed maturity securities available for sale	16,351,954		—		16,351,954		—
Equity securities:
Common stocks	883,317		877,387		1,230		4,700
Preferred stocks	243,174		—		231,203		11,971
Total equity securities	1,126,491		877,387		232,433		16,671
Arbitrage trading account	1,188,910		1,186,353		2,557		—
Total	$	18,667,355	$	2,063,740	$	16,586,944	$	16,671
Liabilities:
Trading account securities sold but not yet purchased	$	241	$	241	$	—	$	—
December 31, 2021
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	855,343	$	—	$	855,343	$	—
State and municipal	3,304,133		—		3,304,133		—
Mortgage-backed	1,068,075		—		1,068,075		—
Asset-backed	4,490,565		—		4,490,565		—
Corporate	5,595,675		—		5,595,675		—
Foreign government	1,214,901		—		1,214,901		—
Total fixed maturity securities available for sale	16,528,692		—		16,528,692		—
Equity securities:
Common stocks	695,403		684,470		1,639		9,294
Preferred stocks	245,840		—		234,544		11,296
Total equity securities	941,243		684,470		236,183		20,590
Arbitrage trading account	1,179,606		1,153,079		26,527		—
Total	$	18,649,541	$	1,837,549	$	16,791,402	$	20,590
Liabilities:
Trading account securities sold but not yet purchased	$	1,169	$	1,137	$	32	$	—

    The following tables summarize changes in Level 3 assets and liabilities for the three months ended March 31, 2022 and for the year ended December 31, 2021:

Gains (Losses) Included In:
(In thousands)	Beginning Balance		Earnings (Losses)		Other Comprehensive Income (Losses)		Impairments		Purchases		Sales		Paydowns / Maturities		Transfers In / (Out)		Ending Balance
Three Months Ended March 31, 2022
Assets:
Equity securities:
Common stocks	$	9,294	$	(4,594)	$	—	$	—	$	—	$	—	$	—	$	—	$	4,700
Preferred stocks	11,296		—		—		—		675		—		—		—		11,971
Total	20,590		(4,594)		—		—		675		—		—		—		16,671
Arbitrage trading account	—		—		—		—		—		—		—		—		—
Total	$	20,590	$	(4,594)	$	—	$	—	$	675	$	—	$	—	$	—	$	16,671
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	(1)	$	—	$	—	$	—	$	—	$	—	$	1	$	—
Year Ended December 31, 2021
Assets:
Fixed maturities securities available for sale:
Corporate	$	1,000	$	—	$	—	$	—	$	—	$	(1,000)	$	—	$	—	$	—
Total	1,000		—		—		—		—		(1,000)		—		—		—
Equity securities:
Common stocks	9,215		640		—		—		—		(561)		—		—		9,294
Preferred stocks	9,331		(35)		—		—		2,000		—		—		—		11,296
Total	18,546		605		—		—		2,000		(561)		—		—		20,590
Arbitrage trading account	—		8		—		—		—		(8)		—		—		—
Total	$	19,546	$	613	$	—	$	—	$	2,000	$	(1,569)	$	—	$	—	$	20,590
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	1	$	—	$	—	$	(1)	$	—	$	—	$	—	$	—

    For the three months ended March 31, 2022, there was one security transferred into Level 3. For the year ended December 31, 2021, there were no securities transferred into or out of Level 3.

Fair Value of Financial Instruments

    The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	March 31, 2022				December 31, 2021
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	16,426,196	$	16,433,614	$	16,602,673	$	16,614,118
Equity securities	1,126,491		1,126,491		941,243		941,243
Arbitrage trading account	1,188,910		1,188,910		1,179,606		1,179,606
Loans receivable	115,097		115,556		115,172		116,534
Cash and cash equivalents	2,114,841		2,114,841		1,568,843		1,568,843
Due from broker	—		—		20,448		20,448
Liabilities:
Due to broker	77,601		77,601		—		—
Trading account payable to brokers and clearing organizations	56,652		56,652		53,636		53,636
Trading account securities sold but not yet purchased	241		241		1,169		1,169
Senior notes and other debt	1,834,155		1,788,992		2,259,416		2,526,630
Subordinated debentures	1,007,832		957,670		1,007,652		1,095,600

    The estimated fair values of the Company’s fixed maturity securities, equity securities and arbitrage trading account securities are based on various valuation techniques that rely on fair value measurements as described in Note 15. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics, which is considered a Level 2 input. The fair value of the senior notes and other debt and the subordinated debentures is based on spreads for similar securities, which is considered a Level 2 input.

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Premiums and Reinsurance Related Information

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Premiums and Reinsurance Related Information

Premiums and Reinsurance Related Information

The following is a summary of insurance and reinsurance financial information:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Written premiums:
Direct	$	2,542,336	$	2,177,162
Assumed	317,500		307,550
Ceded	(446,582)		(434,674)
Total net premiums written	$	2,413,254	$	2,050,038
Earned premiums:
Direct	$	2,404,597	$	2,003,045
Assumed	292,373		259,541
Ceded	(447,883)		(412,630)
Total net premiums earned	$	2,249,087	$	1,849,956
Ceded losses and loss expenses incurred	$	243,294	$	298,740
Ceded commissions earned	$	117,445	$	101,680

The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	25,218	$	22,883
Provision for expected credit losses	3,018		1,381
Allowance for expected credit losses, end of period	$	28,236	$	24,264

The Company reinsures a portion of its insurance exposures in order to reduce its net liability on individual risks and catastrophe losses. The Company also cedes premiums to state assigned risk plans and captive insurance companies. Estimated amounts due from reinsurers are reported net of an allowance for expected credit losses.

The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	7,713	$	7,801
Provision for expected credit losses	(58)		(428)
Allowance for expected credit losses, end of period	$	7,655	$	7,373

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Restricted Stock Units

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Restricted Stock Units

Restricted Stock Units

    Pursuant to its stock incentive plan, the Company may issue restricted stock units ("RSUs") to employees of the Company and its subsidiaries. The RSUs generally vest three to five years from the award date and are subject to other vesting and forfeiture provisions contained in the award agreement. RSUs are expensed pro-ratably over the vesting period. RSU expenses were $11 million and $12 million for the three months ended March 31, 2022 and 2021 respectively. A summary of RSUs issued in the three months ended March 31, 2022 and 2021 follows:

($ in thousands)	Units	Fair Value
2022	1,660	$	150
2021	885	$	40

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Litigation and Contingent Liabilities	3 Months Ended
	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Litigation and Contingent Liabilities	Litigation and Contingent Liabilities    In the ordinary course of business, the Company is subject to disputes, litigation and arbitration arising from its insurance and reinsurance businesses. These matters are generally related to insurance and reinsurance claims and are considered in the establishment of loss and loss expense reserves. In addition, the Company may also become involved in legal actions which seek extra-contractual damages, punitive damages or penalties, including claims alleging bad faith in handling of insurance claims. The Company expects its ultimate liability with respect to such matters will not be material to its financial condition. However, adverse outcomes on such matters are possible, from time to time, and could be material to the Company’s results of operations in any particular financial reporting period.

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Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Leases

    Lessees are required to recognize a right-of-use asset and a lease liability for leases with terms of more than 12 months on the balance sheet. All leases disclosed within this footnote are classified as operating leases. Recognized right-of-use asset and lease liability are reported within other assets and other liabilities, respectively, in the consolidated balance sheet. Lease expense is reported in other operating costs and expenses in the consolidated statement of income and accounted for on a straight-line basis over the lease term.

    To determine the discount rate used to calculate present value of future minimum lease payments, the Company uses its incremental borrowing rate during the lease commencement period in line with the respective lease duration. In certain cases, the Company has the option to renew the lease. Lease renewal future payments are included in the present value of the future minimum lease payments when the Company determines it is reasonably certain to renew.

    The main leases entered into by the Company are for office space used by the Company’s operating units across the world. Additionally, the Company, to a lesser extent, has equipment leases mainly for office equipment. Further information relating to operating lease expense and other operating lease information are as follows:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Leases:
Lease cost	$	10,198	$	11,264
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows	$	10,993	$	11,377
Right-of-use assets obtained in exchange for new lease liabilities	$	17,269	$	30

	As of March 31,
($ in thousands)	2022			2021
Right-of-use assets	$	180,424		$	156,942
Lease liabilities	$	217,086		$	195,590
Weighted-average remaining lease term	7.3 years			6.7 years
Weighted-average discount rate	4.58		%	5.94		%

Contractual maturities of the Company’s future minimum lease payments are as follows:

(In thousands)	March 31, 2022
Contractual Maturities:
2022	$	34,336
2023	45,618
2024	39,676
2025	29,793
2026	23,150
Thereafter	77,609
Total undiscounted future minimum lease payments	250,182
Less: Discount impact	33,096
Total lease liability	$	217,086

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Business Segments

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Business Segments

Business Segments

    The Company’s reportable segments include the following two business segments, plus a corporate segment:

•Insurance - predominantly commercial insurance business, including excess and surplus lines, admitted lines and specialty personal lines throughout the United States, as well as insurance business in the United Kingdom, Continental Europe, South America, Canada, Mexico, Scandinavia, Asia and Australia.

•Reinsurance & Monoline Excess - reinsurance business on a facultative and treaty basis, primarily in the United States, the United Kingdom, Continental Europe, Australia, the Asia-Pacific Region and South Africa, as well as operations that solely retain risk on an excess basis.

    The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company's overall effective tax rate.

    Summary financial information about the Company's reporting segments is presented in the following tables. Income (loss) before income taxes by segment includes allocated investment income. Identifiable assets by segment are those assets used in or allocated to the operation of each segment.

	Revenues
(In thousands)	Earned Premiums (1)		Investment Income		Other		Total (2)		Pre-Tax Income (Loss)		Net Income (Loss) to Common Stockholders
Three months ended March 31, 2022
Insurance	$	1,962,835	$	137,654	$	8,676	$	2,109,165	$	382,412	$	315,552
Reinsurance & Monoline Excess	286,252		27,423		—		313,675		57,628		47,080
Corporate, other and eliminations (3)	—		8,435		117,869		126,304		(73,872)		(59,817)
Net investment gains	—		—		366,265		366,265		366,265		287,823
Total	$	2,249,087	$	173,512	$	492,810	$	2,915,409	$	732,433	$	590,638
Three months ended March 31, 2021
Insurance	$	1,604,979	$	105,237	$	8,279	$	1,718,495	$	257,109	$	198,708
Reinsurance & Monoline Excess	244,977		37,708		—		282,685		68,649		54,471
Corporate, other and eliminations (3)	—		15,632		105,218		120,850		(64,529)		(52,606)
Net investment gains	—		—		34,839		34,839		34,839		28,952
Total	$	1,849,956	$	158,577	$	148,336	$	2,156,869	$	296,068	$	229,525

_________________

(1) Certain amounts included in earned premiums of each segment are related to inter-segment transactions.

(2) Revenues for Insurance from foreign countries for the three months ended March 31, 2022 and 2021 were $235 million and $196 million, respectively. Revenues for Reinsurance & Monoline Excess from foreign countries for the three months ended March 31, 2022 and 2021 were $96 million and $88 million, respectively.

(3) Corporate, other and eliminations represent corporate revenues and expenses that are not allocated to business segments.

Identifiable Assets

(In thousands)	March 31, 2022		December 31, 2021
Insurance	$	25,057,202	$	24,403,918
Reinsurance & Monoline Excess	5,058,976		4,917,985
Corporate, other and eliminations	2,134,776		2,725,973
Consolidated	$	32,250,954	$	32,047,876

    Net premiums earned by major line of business are as follows:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Insurance:
Other liability	$	754,456	$	611,404
Short-tail lines (1)	375,212		324,740
Workers' compensation	285,423		267,449
Commercial automobile	282,234		220,761
Professional liability	265,510		180,626
Total Insurance	1,962,835		1,604,979
Reinsurance & Monoline Excess:
Casualty reinsurance	184,122		149,638
Property reinsurance	50,234		49,466
Monoline excess (2)	51,896		45,873
Total Reinsurance & Monoline Excess	286,252		244,977
Total	$	2,249,087	$	1,849,956

______________

(1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines.

(2) Monoline excess includes operations that solely retain risk on an excess basis.

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Subsequent Event	3 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
Subsequent Event	Subsequent EventOn April 1, 2022, the Company entered into a senior unsecured revolving credit facility that provides for revolving, unsecured borrowings up to an aggregate of $300 million with a $50 million sublimit for letters of credit. The Company may increase the amount available under the facility to a maximum of $500 million subject to obtaining lender commitments for the increase and other customary conditions. Borrowings under the facility may be used for working capital and other general corporate purposes. All borrowings under the facility must be repaid by April 1, 2027, except that letters of credit outstanding on that date may remain outstanding until April 1, 2028 (or such later date approved by all lenders). Our ability to utilize the facility is conditioned on the satisfaction of representations, warranties and covenants that are customary for facilities of this type. As of the date of this report, there were no borrowings outstanding under the facility.

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Recent Accounting Pronouncements and Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Per Share Data

Per Share Data

    The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period (including 11,592,699 and 11,651,811 common shares held in a grantor trust as of March 31, 2022 and 2021, respectively). The common shares held in the grantor trust are for delivery upon settlement of vested but mandatorily deferred restricted stock units ("RSUs"). Shares held by the grantor trust do not affect diluted shares outstanding since the shares deliverable under vested RSUs were already included in diluted shares outstanding. Diluted EPS is based upon the weighted average number of basic and common equivalent shares outstanding during the period and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect.

    The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows:

	For the Three Months Ended March 31,
(In thousands)	2022	2021
Basic	276,772	277,793
Diluted	279,157	280,245

Recent Accounting Pronouncements

Recent Accounting Pronouncements and Accounting Policies

Recently adopted accounting pronouncements:

    All accounting and reporting standards that became effective in 2022 were either not applicable to the Company or their adoption did not have a material impact on the Company.

Accounting and reporting standards that are not yet effective:

    All recently issued but not yet effective accounting and reporting standards are either not applicable to the Company or are not expected to have a material impact on the Company.

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Consolidated Statements of Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Components of changes in accumulated other comprehensive income (loss)

The following table presents the components of the changes in accumulated other comprehensive (loss) income ("AOCI"):

(In thousands)	Unrealized Investment Gains (Losses)			Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
As of and for the three months ended March 31, 2022
Changes in AOCI
Beginning of period	$	90,900		$	(372,855)	$	(281,955)
Other comprehensive (loss) income before reclassifications	(433,136)			56,272		(376,864)
Amounts reclassified from AOCI	9,591			—		9,591
Other comprehensive (loss) income	(423,545)			56,272		(367,273)
Unrealized investment gain related to noncontrolling interest	(1)			—		(1)
End of period	$	(332,646)		$	(316,583)	$	(649,229)
Amounts reclassified from AOCI
Pre-tax	$	12,141	(1)	$	—	$	12,141
Tax effect	(2,550)		(2)	—		(2,550)
After-tax amounts reclassified	$	9,591		$	—	$	9,591
Other comprehensive (loss) income
Pre-tax	$	(539,449)		$	56,272	$	(483,177)
Tax effect	115,904			—		115,904
Other comprehensive (loss) income	$	(423,545)		$	56,272	$	(367,273)

As of and for the three months ended March 31, 2021
Changes in AOCI
Beginning of period	$	289,714		$	(351,886)	$	(62,172)
Other comprehensive (loss) income before reclassifications	(98,991)			4,050		(94,941)
Amounts reclassified from AOCI	8,861			—		8,861
Other comprehensive (loss) income	(90,130)			4,050		(86,080)
Unrealized investment gain related to noncontrolling interest	—			—		—
End of period	$	199,584		$	(347,836)	$	(148,252)
Amounts reclassified from AOCI
Pre-tax	$	11,216	(1)	$	—	$	11,216
Tax effect	(2,355)		(2)	—		(2,355)
After-tax amounts reclassified	$	8,861		$	—	$	8,861
Other comprehensive (loss) income
Pre-tax	$	(113,735)		$	4,050	$	(109,685)
Tax effect	23,605			—		23,605
Other comprehensive (loss) income	$	(90,130)		$	4,050	$	(86,080)

____________

(1) Net investment gains (losses) in the consolidated statements of income.

(2) Income tax expense in the consolidated statements of income.

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Per Share Data (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Weighted average number of common shares

The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows:

	For the Three Months Ended March 31,
(In thousands)	2022	2021
Basic	276,772	277,793
Diluted	279,157	280,245

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Acquisitions (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Estimated Fair Value of Net Assets Acquired and Liabilities Assumed

The following table summarizes the initial estimated fair value of net assets acquired and liabilities assumed for the business combination completed in 2022:

(In thousands)	2022
Cash and cash equivalents	$	1,564
Real estate, furniture and equipment	2,527
Intangible assets	48,787
Other assets	11,275
Total assets acquired	64,153
Other liabilities assumed	(5,417)
Noncontrolling interest	(7,600)
Net assets acquired	$	51,136

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Investments in Fixed Maturity Securities (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Schedule of investments in fixed maturity securities

At March 31, 2022 and December 31, 2021, investments in fixed maturity securities were as follows:

(In thousands)	Amortized Cost		Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
					Gains		Losses
March 31, 2022
Held to maturity:
State and municipal	$	70,165	$	(378)	$	7,094	$	—	$	76,881	$	69,787
Residential mortgage-backed	4,455		—		324		—		4,779		4,455
Total held to maturity	74,620		(378)		7,418		—		81,660		74,242
Available for sale:
U.S. government and government agency	837,167		—		2,397		(20,716)		818,848		818,848
State and municipal:
Special revenue	1,948,586		—		12,944		(44,803)		1,916,727		1,916,727
State general obligation	378,408		—		7,043		(6,574)		378,877		378,877
Pre-refunded	165,882		—		6,216		—		172,098		172,098
Corporate backed	175,070		—		1,407		(4,472)		172,005		172,005
Local general obligation	410,058		—		11,184		(5,075)		416,167		416,167
Total state and municipal	3,078,004		—		38,794		(60,924)		3,055,874		3,055,874
Mortgage-backed:
Residential	1,179,468		—		2,417		(60,650)		1,121,235		1,121,235
Commercial	266,921		—		339		(3,759)		263,501		263,501
Total mortgage-backed	1,446,389		—		2,756		(64,409)		1,384,736		1,384,736
Asset-backed	4,319,535		—		1,459		(63,573)		4,257,421		4,257,421
Corporate:
Industrial	3,373,710				12,708		(115,614)		3,270,804		3,270,804
Financial	1,747,275		—		4,612		(45,155)		1,706,732		1,706,732
Utilities	422,354		—		1,806		(14,434)		409,726		409,726
Other	206,526		—		47		(5,328)		201,245		201,245
Total corporate	5,749,865		—		19,173		(180,531)		5,588,507		5,588,507
Foreign government	1,333,123		(26,153)		3,411		(63,813)		1,246,568		1,246,568
Total available for sale	16,764,083		(26,153)		67,990		(453,966)		16,351,954		16,351,954
Total investments in fixed maturity securities	$	16,838,703	$	(26,531)	$	75,408	$	(453,966)	$	16,433,614	$	16,426,196

____________

(1) Represents the amount of impairment that has resulted from credit-related factors. The change in the allowance for expected credit losses is recognized in the consolidated statements of income. Amount excludes unrealized losses relating to non-credit factors.

(In thousands)	Amortized Cost		Allowance for Expected Credit Losses (1)		Gross Unrealized				Fair Value		Carrying Value
					Gains		Losses
December 31, 2021
Held to maturity:
State and municipal	$	69,539	$	(387)	$	10,813	$	—	$	79,965	$	69,152
Residential mortgage-backed	4,829		—		632		—		5,461		4,829
Total held to maturity	74,368		(387)		11,445		—		85,426		73,981
Available for sale:
U.S. government and government agency	851,128		—		8,509		(4,294)		855,343		855,343
State and municipal:
Special revenue	2,016,382		—		62,961		(5,706)		2,073,637		2,073,637
State general obligation	388,110		—		23,152		(1,015)		410,247		410,247
Pre-refunded	202,633		—		14,891		(574)		216,950		216,950
Corporate backed	166,943		—		7,191		(1,532)		172,602		172,602
Local general obligation	401,974		—		29,455		(732)		430,697		430,697
Total state and municipal	3,176,042		—		137,650		(9,559)		3,304,133		3,304,133
Mortgage-backed:
Residential	940,744		—		9,896		(11,321)		939,319		939,319
Commercial	125,709		—		3,388		(341)		128,756		128,756
Total mortgage-backed securities	1,066,453		—		13,284		(11,662)		1,068,075		1,068,075
Asset-backed	4,504,950		—		4,409		(18,794)		4,490,565		4,490,565
Corporate:
Industrial	3,231,520		(16)		62,751		(21,092)		3,273,163		3,273,163
Financial	1,739,282		—		30,709		(6,591)		1,763,400		1,763,400
Utilities	396,242		—		13,262		(3,202)		406,302		406,302
Other	154,210		—		125		(1,525)		152,810		152,810
Total corporate	5,521,254		(16)		106,847		(32,410)		5,595,675		5,595,675
Foreign government	1,277,109		(22,222)		7,508		(47,494)		1,214,901		1,214,901
Total available for sale	16,396,936		(22,238)		278,207		(124,213)		16,528,692		16,528,692
Total investments in fixed maturity securities	$	16,471,304	$	(22,625)	$	289,652	$	(124,213)	$	16,614,118	$	16,602,673

Debt Securities, Held-to-maturity, Allowance for Credit Loss

The following table presents the rollforward of the allowance for expected credit losses for held to maturity securities for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	387	$	798
Provision for expected credit losses	(9)		(68)
Allowance for expected credit losses, end of period	$	378	$	730

Debt Securities, Available-for-sale, Allowance for Credit Loss

The following table presents the rollforward of the allowance for expected credit losses for available for sale securities for the three months ended March 31, 2022 and 2021:

	2022						2021
(In thousands)	Foreign Government		Corporate		Total		Foreign Government		Corporate		Total
Allowance for expected credit losses, beginning of period	$	22,222	$	16	$	22,238	$	1,264	$	518	$	1,782
Expected credit losses on securities for which credit losses were not previously recorded	484		—		484		18,990		16		19,006
Expected credit losses (gains) on securities for which credit losses were previously recorded	3,447		(16)		3,431		(261)		(513)		(774)
Reduction due to disposals	—		—		—		—		(5)		(5)
Allowance for expected credit losses, end of period	$	26,153	$	—	$	26,153	$	19,993	$	16	$	20,009

Amortized cost and fair value of fixed maturity securities by contractual maturity

The amortized cost and fair value of fixed maturity securities at March 31, 2022, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations.  

(In thousands)	Amortized Cost (1)		Fair Value
Due in one year or less	$	1,472,865	$	1,461,188
Due after one year through five years	7,903,303		7,756,952
Due after five years through ten years	4,029,040		3,898,727
Due after ten years	1,982,273		1,927,232
Mortgage-backed securities	1,450,844		1,389,515
Total	$	16,838,325	$	16,433,614

________________

(1) Amortized cost is reduced by the allowance for expected credit losses of $378 thousand related to held to maturity securities.

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Investments in Equity Securities (Tables)

3 Months Ended

Mar. 31, 2022

Real estate

Debt Securities, Available-for-sale [Line Items]

Schedule of Investments in Equity Securities

At March 31, 2022 and December 31, 2021, investments in equity securities were as follows:

(In thousands)	Cost		Gross Unrealized				Fair Value		Carrying Value
			Gains		Losses
March 31, 2022
Common stocks	$	699,566	$	191,842	$	(8,091)	$	883,317	$	883,317
Preferred stocks	262,513		2,917		(22,256)		243,174		243,174
Total	$	962,079	$	194,759	$	(30,347)	$	1,126,491	$	1,126,491
December 31, 2021
Common stocks	$	619,896	$	92,401	$	(16,894)	$	695,403	$	695,403
Preferred stocks	250,149		7,874		(12,183)		245,840		245,840
Total	$	870,045	$	100,275	$	(29,077)	$	941,243	$	941,243

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Net Investment Income (Tables)

3 Months Ended

Mar. 31, 2022

Net Investment Income [Abstract]

Schedule of Net Investment Income

Net investment income consisted of the following: 

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Investment income earned on:
Fixed maturity securities, including cash and cash equivalents and loans receivable	$	101,284	$	94,677
Investment funds	52,012		38,935
Arbitrage trading account	9,187		19,074
Equity securities	10,856		6,180
Real estate	2,146		1,161
Gross investment income	175,485		160,027
Investment expense	(1,973)		(1,450)
Net investment income	$	173,512	$	158,577

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Investment Funds (Tables)

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Investment Funds

Investment funds consisted of the following:

	Carrying Value as of				Income (Loss) from Investment Funds
	March 31,		December 31,		For the Three Months Ended March 31,
(In thousands)	2022		2021		2022		2021
Financial services	$	454,701	$	431,818	$	25,932	$	17,142
Transportation	341,022		336,688		11,179		6,228
Real Estate	283,897		273,690		16,364		4,434
Energy	136,401		150,224		(892)		3,320
Other funds	329,627		288,192		(569)		7,811
Total	$	1,545,648	$	1,480,612	$	52,014	$	38,935

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Real Estate (Tables)

3 Months Ended

Mar. 31, 2022

Real Estate [Abstract]

Schedule of Real Estate Investments

Investment in real estate represents directly owned property held for investment, as follows:

	Carrying Value
	March 31,		December 31,
(In thousands)	2022		2021
Properties in operation	$	1,052,198	$	1,626,826
Properties under development	223,959		225,682
Total	$	1,276,157	$	1,852,508

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Loans Receivable Loans Receivable (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Loans Receivable

At March 31, 2022 and December 31, 2021, loans receivable were as follows:

(In thousands)	March 31, 2022		December 31, 2021
Amortized cost (net of allowance for expected credit losses):
Real estate loans	$	89,213	$	89,431
Commercial loans	25,884		25,741
Total	$	115,097	$	115,172
Fair value:
Real estate loans	$	89,672	$	90,793
Commercial loans	25,884		25,741
Total	$	115,556	$	116,534

Financing Receivable, Allowance for Credit Loss

The following table presents the rollforward of the allowance for expected credit losses for loans receivable for the three months ended March 31, 2022 and 2021:

	2022						2021
(In thousands)	Real Estate Loans		Commercial Loans		Total		Real Estate Loans		Commercial Loans		Total
Allowance for expected credit losses, beginning of period	$	1,362	$	356	$	1,718	$	1,683	$	3,754	$	5,437
Provision for expected credit losses	(67)		(222)		(289)		(75)		(1,164)		(1,239)
Allowance for expected credit losses, end of period	$	1,295	$	134	$	1,429	$	1,608	$	2,590	$	4,198

During the three months ended March 31, 2022, the Company reduced the allowance primarily due to the decrease in the duration of the loan portfolio.

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Net Investment Gains (Losses) (Tables)

3 Months Ended

Mar. 31, 2022

Realized and Unrealized Investment Gains (Losses) [Abstract]

Realized And Unrealized Investment Gains (Losses)

Net investment gains (losses) were as follows:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Net investment gains (losses):
Fixed maturity securities:
Gains	$	1,705	$	8,240
Losses	(2,984)		(2,071)
Equity securities (1):
Net realized gains on investment sales	905		8,572
Change in unrealized gains (losses)	93,213		(24,335)
Investment funds	(2,162)		47,671
Real estate (2)	286,192		12,909
Loans receivable	(32)		—
Other	(6,955)		773
Net realized and unrealized gains on investments in earnings before allowance for expected credit losses	369,882		51,759
Change in allowance for expected credit losses on investments:
Fixed maturity securities	(3,906)		(18,159)
Loans receivable	289		1,239
Change in allowance for expected credit losses on investments	(3,617)		(16,920)
Net investment gains	366,265		34,839
Income tax expense	(78,442)		(5,887)
After-tax net investment gains	$	287,823	$	28,952

Change in unrealized investment losses on available for sale securities:
Fixed maturity securities without allowance for expected credit losses	$	(540,263)	$	(122,568)
Fixed maturity securities with allowance for expected credit losses	293		10,355
Investment funds	469		(1,020)
Other	52		(502)
Total change in unrealized investment losses	(539,449)		(113,735)
Income tax benefit	115,904		23,605
Noncontrolling interests	(1)		—
After-tax change in unrealized investment losses of available for sale securities	$	(423,546)	$	(90,130)

______________________

(1) The net realized gains or losses on investment sales represent the total gains or losses from the purchase dates of the equity securities. The change in unrealized (losses) gains consists of two components: (i) the reversal of the gain or loss recognized in previous periods on equity securities sold and (ii) the change in unrealized gain or loss resulting from mark-to-market adjustments on equity securities still held.

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Fixed Maturity Securities In An Unrealized Loss Position (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Securities in an unrealized loss position

The following tables summarize all fixed maturity securities in an unrealized loss position at March 31, 2022 and December 31, 2021 by the length of time those securities have been continuously in an unrealized loss position:

	Less Than 12 Months				12 Months or Greater				Total
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
March 31, 2022
U.S. government and government agency	$	547,027	$	18,521	$	36,307	$	2,195	$	583,334	$	20,716
State and municipal	1,360,055		51,579		95,853		9,345		1,455,908		60,924
Mortgage-backed	1,069,979		49,408		140,480		15,001		1,210,459		64,409
Asset-backed	3,898,607		61,254		186,663		2,319		4,085,270		63,573
Corporate	3,805,020		148,708		381,306		31,823		4,186,326		180,531
Foreign government	809,004		29,721		211,576		34,092		1,020,580		63,813
Fixed maturity securities	$	11,489,692	$	359,191	$	1,052,185	$	94,775	$	12,541,877	$	453,966
December 31, 2021
U.S. government and government agency	$	487,712	$	4,026	$	17,021	$	268	$	504,733	$	4,294
State and municipal	502,333		7,403		29,547		2,156		531,880		9,559
Mortgage-backed	558,751		6,900		106,130		4,762		664,881		11,662
Asset-backed	3,832,944		18,503		75,385		291		3,908,329		18,794
Corporate	2,582,860		29,322		51,095		3,088		2,633,955		32,410
Foreign government	758,975		15,793		82,057		31,701		841,032		47,494
Fixed maturity securities	$	8,723,575	$	81,947	$	361,235	$	42,266	$	9,084,810	$	124,213

Non-Investment Grade Fixed Maturity Securities

A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at March 31, 2022 is presented in the table below:

($ in thousands)	Number of Securities	Aggregate Fair Value		Gross Unrealized Loss
Foreign government	37	$	132,306	$	30,753
Corporate	12	30,071		3,158
State and municipal	1	13,583		1,422
Mortgage-backed	7	1,785		48
Asset-backed	1	37		5
Total	58	$	177,782	$	35,386

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Assets And Liabilities Measured At Fair value, On A Recurring Basis

The following tables present the assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 by level:

(In thousands)	Total		Level 1		Level 2		Level 3
March 31, 2022
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	818,848	$	—	$	818,848	$	—
State and municipal	3,055,874		—		3,055,874		—
Mortgage-backed	1,384,736		—		1,384,736		—
Asset-backed	4,257,421		—		4,257,421		—
Corporate	5,588,507		—		5,588,507		—
Foreign government	1,246,568		—		1,246,568		—
Total fixed maturity securities available for sale	16,351,954		—		16,351,954		—
Equity securities:
Common stocks	883,317		877,387		1,230		4,700
Preferred stocks	243,174		—		231,203		11,971
Total equity securities	1,126,491		877,387		232,433		16,671
Arbitrage trading account	1,188,910		1,186,353		2,557		—
Total	$	18,667,355	$	2,063,740	$	16,586,944	$	16,671
Liabilities:
Trading account securities sold but not yet purchased	$	241	$	241	$	—	$	—
December 31, 2021
Assets:
Fixed maturity securities available for sale:
U.S. government and government agency	$	855,343	$	—	$	855,343	$	—
State and municipal	3,304,133		—		3,304,133		—
Mortgage-backed	1,068,075		—		1,068,075		—
Asset-backed	4,490,565		—		4,490,565		—
Corporate	5,595,675		—		5,595,675		—
Foreign government	1,214,901		—		1,214,901		—
Total fixed maturity securities available for sale	16,528,692		—		16,528,692		—
Equity securities:
Common stocks	695,403		684,470		1,639		9,294
Preferred stocks	245,840		—		234,544		11,296
Total equity securities	941,243		684,470		236,183		20,590
Arbitrage trading account	1,179,606		1,153,079		26,527		—
Total	$	18,649,541	$	1,837,549	$	16,791,402	$	20,590
Liabilities:
Trading account securities sold but not yet purchased	$	1,169	$	1,137	$	32	$	—

Summarize Changes In Level 3 Assets

The following tables summarize changes in Level 3 assets and liabilities for the three months ended March 31, 2022 and for the year ended December 31, 2021:

Gains (Losses) Included In:
(In thousands)	Beginning Balance		Earnings (Losses)		Other Comprehensive Income (Losses)		Impairments		Purchases		Sales		Paydowns / Maturities		Transfers In / (Out)		Ending Balance
Three Months Ended March 31, 2022
Assets:
Equity securities:
Common stocks	$	9,294	$	(4,594)	$	—	$	—	$	—	$	—	$	—	$	—	$	4,700
Preferred stocks	11,296		—		—		—		675		—		—		—		11,971
Total	20,590		(4,594)		—		—		675		—		—		—		16,671
Arbitrage trading account	—		—		—		—		—		—		—		—		—
Total	$	20,590	$	(4,594)	$	—	$	—	$	675	$	—	$	—	$	—	$	16,671
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	(1)	$	—	$	—	$	—	$	—	$	—	$	1	$	—
Year Ended December 31, 2021
Assets:
Fixed maturities securities available for sale:
Corporate	$	1,000	$	—	$	—	$	—	$	—	$	(1,000)	$	—	$	—	$	—
Total	1,000		—		—		—		—		(1,000)		—		—		—
Equity securities:
Common stocks	9,215		640		—		—		—		(561)		—		—		9,294
Preferred stocks	9,331		(35)		—		—		2,000		—		—		—		11,296
Total	18,546		605		—		—		2,000		(561)		—		—		20,590
Arbitrage trading account	—		8		—		—		—		(8)		—		—		—
Total	$	19,546	$	613	$	—	$	—	$	2,000	$	(1,569)	$	—	$	—	$	20,590
Liabilities:
Trading account securities sold but not yet purchased	$	—	$	1	$	—	$	—	$	(1)	$	—	$	—	$	—	$	—

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Reserves for Loss and Loss Expenses (Tables)

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Reserve Balances

The table below provides a reconciliation of the beginning and ending reserve balances:

	March 31,
(In thousands)	2022		2021
Net reserves at beginning of period	$	12,848,362	$	11,620,393
Net provision for losses and loss expenses:
Claims occurring during the current year (1)	1,327,695		1,115,173
Increase (decrease) in estimates for claims occurring in prior years (2) (3)	3,761		(859)
Loss reserve discount accretion	7,796		7,278
Total	1,339,252		1,121,592
Net payments for claims:
Current year	84,598		97,586
Prior years	933,656		794,472
Total	1,018,254		892,058
Foreign currency translation	9,983		(14,779)
Net reserves at end of period	13,179,343		11,835,148
Ceded reserves at end of period	2,543,546		2,245,380
Gross reserves at end of period	$	15,722,889	$	14,080,528

_______________________________________

(1) Claims occurring during the current year are net of loss reserve discounts of $7 million and $5 million for the three months ended March 31, 2022 and 2021, respectively.

(2) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years decreased by $4 million and $5 million for the three months ended March 31, 2022 and 2021, respectively.

(3) For certain retrospectively rated insurance policies and reinsurance agreements, reserve development is offset by additional or return premiums. Favorable development, net of additional and return premiums, was $1 million and $3 million for the three months ended March 31, 2022 and 2021, respectively.

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Carrying Amounts And Estimated Fair Values Of Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:

	March 31, 2022				December 31, 2021
(In thousands)	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:
Fixed maturity securities	$	16,426,196	$	16,433,614	$	16,602,673	$	16,614,118
Equity securities	1,126,491		1,126,491		941,243		941,243
Arbitrage trading account	1,188,910		1,188,910		1,179,606		1,179,606
Loans receivable	115,097		115,556		115,172		116,534
Cash and cash equivalents	2,114,841		2,114,841		1,568,843		1,568,843
Due from broker	—		—		20,448		20,448
Liabilities:
Due to broker	77,601		77,601		—		—
Trading account payable to brokers and clearing organizations	56,652		56,652		53,636		53,636
Trading account securities sold but not yet purchased	241		241		1,169		1,169
Senior notes and other debt	1,834,155		1,788,992		2,259,416		2,526,630
Subordinated debentures	1,007,832		957,670		1,007,652		1,095,600

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Premiums and Reinsurance Related Information (Tables)

3 Months Ended

Mar. 31, 2022

Insurance [Abstract]

Reinsurance Financial Information

The following is a summary of insurance and reinsurance financial information:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Written premiums:
Direct	$	2,542,336	$	2,177,162
Assumed	317,500		307,550
Ceded	(446,582)		(434,674)
Total net premiums written	$	2,413,254	$	2,050,038
Earned premiums:
Direct	$	2,404,597	$	2,003,045
Assumed	292,373		259,541
Ceded	(447,883)		(412,630)
Total net premiums earned	$	2,249,087	$	1,849,956
Ceded losses and loss expenses incurred	$	243,294	$	298,740
Ceded commissions earned	$	117,445	$	101,680

Premium receivable, allowance for credit loss

The following table presents the rollforward of the allowance for expected credit losses for premiums and fees receivable for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	25,218	$	22,883
Provision for expected credit losses	3,018		1,381
Allowance for expected credit losses, end of period	$	28,236	$	24,264

Reinsurance Recoverable, Allowance for Credit Loss

The following table presents the rollforward of the allowance for expected credit losses associated with due from reinsurers for the three months ended March 31, 2022 and 2021:

(In thousands)	2022		2021
Allowance for expected credit losses, beginning of period	$	7,713	$	7,801
Provision for expected credit losses	(58)		(428)
Allowance for expected credit losses, end of period	$	7,655	$	7,373

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Restricted Stock Units (Tables)

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Summary Of Restricted Stock Units Issued

A summary of RSUs issued in the three months ended March 31, 2022 and 2021 follows:

($ in thousands)	Units	Fair Value
2022	1,660	$	150
2021	885	$	40

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Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Lease, Cost

Further information relating to operating lease expense and other operating lease information are as follows:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Leases:
Lease cost	$	10,198	$	11,264
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows	$	10,993	$	11,377
Right-of-use assets obtained in exchange for new lease liabilities	$	17,269	$	30

Supplemental Balance Sheet Information

	As of March 31,
($ in thousands)	2022			2021
Right-of-use assets	$	180,424		$	156,942
Lease liabilities	$	217,086		$	195,590
Weighted-average remaining lease term	7.3 years			6.7 years
Weighted-average discount rate	4.58		%	5.94		%

Maturities of Operating Lease Liabilities

Contractual maturities of the Company’s future minimum lease payments are as follows:

(In thousands)	March 31, 2022
Contractual Maturities:
2022	$	34,336
2023	45,618
2024	39,676
2025	29,793
2026	23,150
Thereafter	77,609
Total undiscounted future minimum lease payments	250,182
Less: Discount impact	33,096
Total lease liability	$	217,086

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Business Segments (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Financial Information Of Company Operating Segments

	Revenues
(In thousands)	Earned Premiums (1)		Investment Income		Other		Total (2)		Pre-Tax Income (Loss)		Net Income (Loss) to Common Stockholders
Three months ended March 31, 2022
Insurance	$	1,962,835	$	137,654	$	8,676	$	2,109,165	$	382,412	$	315,552
Reinsurance & Monoline Excess	286,252		27,423		—		313,675		57,628		47,080
Corporate, other and eliminations (3)	—		8,435		117,869		126,304		(73,872)		(59,817)
Net investment gains	—		—		366,265		366,265		366,265		287,823
Total	$	2,249,087	$	173,512	$	492,810	$	2,915,409	$	732,433	$	590,638
Three months ended March 31, 2021
Insurance	$	1,604,979	$	105,237	$	8,279	$	1,718,495	$	257,109	$	198,708
Reinsurance & Monoline Excess	244,977		37,708		—		282,685		68,649		54,471
Corporate, other and eliminations (3)	—		15,632		105,218		120,850		(64,529)		(52,606)
Net investment gains	—		—		34,839		34,839		34,839		28,952
Total	$	1,849,956	$	158,577	$	148,336	$	2,156,869	$	296,068	$	229,525

_________________

(1) Certain amounts included in earned premiums of each segment are related to inter-segment transactions.

(2) Revenues for Insurance from foreign countries for the three months ended March 31, 2022 and 2021 were $235 million and $196 million, respectively. Revenues for Reinsurance & Monoline Excess from foreign countries for the three months ended March 31, 2022 and 2021 were $96 million and $88 million, respectively.

(3) Corporate, other and eliminations represent corporate revenues and expenses that are not allocated to business segments

Identifiable Assets By Segment

(In thousands)	March 31, 2022		December 31, 2021
Insurance	$	25,057,202	$	24,403,918
Reinsurance & Monoline Excess	5,058,976		4,917,985
Corporate, other and eliminations	2,134,776		2,725,973
Consolidated	$	32,250,954	$	32,047,876

Net Premiums Earned By Major Line Of Business

Net premiums earned by major line of business are as follows:

	For the Three Months Ended March 31,
(In thousands)	2022		2021
Insurance:
Other liability	$	754,456	$	611,404
Short-tail lines (1)	375,212		324,740
Workers' compensation	285,423		267,449
Commercial automobile	282,234		220,761
Professional liability	265,510		180,626
Total Insurance	1,962,835		1,604,979
Reinsurance & Monoline Excess:
Casualty reinsurance	184,122		149,638
Property reinsurance	50,234		49,466
Monoline excess (2)	51,896		45,873
Total Reinsurance & Monoline Excess	286,252		244,977
Total	$	2,249,087	$	1,849,956

______________

(1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines.

(2) Monoline excess includes operations that solely retain risk on an excess basis.

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Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning of period	$ 6,667,730
Other comprehensive loss	(367,273)	$ (86,080)
End of period	6,887,799
Net realized and unrealized gains on investments	369,882	51,759
Income before income taxes	732,433	296,068
Tax effect	(139,403)	(64,352)
Net income before noncontrolling interests	593,030	231,716
Total change in unrealized investment losses	(539,449)	(113,735)
Net change in period	56,272	4,050
Other comprehensive income (loss), pre-tax	(483,177)	(109,685)
Other comprehensive income (loss), tax effect	115,904	23,605
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning of period	(281,955)	(62,172)
Other comprehensive income (loss) before reclassifications	(376,864)	(94,941)
Amounts reclassified from AOCI	9,591	8,861
Other comprehensive loss	(367,273)	(86,080)
Unrealized investment gain related to noncontrolling interest	(1)	0
End of period	(649,229)	(148,252)
Accumulated Other Comprehensive Income (Loss) | Amounts reclassified from AOCI
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Income before income taxes	12,141	11,216
Tax effect	(2,550)	(2,355)
Net income before noncontrolling interests	9,591	8,861
Unrealized Investment Gains (Losses)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning of period	90,900	289,714
Other comprehensive income (loss) before reclassifications	(433,136)	(98,991)
Amounts reclassified from AOCI	9,591	8,861
Other comprehensive loss	(423,545)	(90,130)
Unrealized investment gain related to noncontrolling interest	(1)	0
End of period	(332,646)	199,584
Total change in unrealized investment losses	(539,449)	(113,735)
Unrealized investment gains, tax effect	115,904	23,605
Unrealized investment gains (losses), after-tax amounts	(423,545)	(90,130)
Unrealized Investment Gains (Losses) | Amounts reclassified from AOCI
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Net realized and unrealized gains on investments	12,141	11,216
Tax effect	(2,550)	(2,355)
Net income before noncontrolling interests	9,591	8,861
Currency Translation Adjustments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning of period	(372,855)	(351,886)
Other comprehensive income (loss) before reclassifications	56,272	4,050
Amounts reclassified from AOCI	0	0
Other comprehensive loss	56,272	4,050
Unrealized investment gain related to noncontrolling interest	0	0
End of period	(316,583)	(347,836)
Currency translation adjustment, pre-tax	56,272	4,050
Currency translation adjustment, tax effect	0	0
Net change in period	56,272	4,050
Currency Translation Adjustments | Amounts reclassified from AOCI
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Income before income taxes	0	0
Tax effect	0	0
Net income before noncontrolling interests	$ 0	$ 0

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Statements of Cash Flows (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Supplemental Cash Flow Elements [Abstract]
Interest payments	$ 52,899,000	$ 45,393,000
Income taxes paid	$ 0	$ 0

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General (Details)	Mar. 23, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stockholders' Equity Note, Stock Split, Conversion Ratio	1.5

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Per Share Data (Narrative) (Details) - shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Weighted average number of shares held in grantor trust (in shares)	11,592,699,000	11,651,811

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Per Share Data (Weighted Average Number of Common Shares Used In the Computation of Basic and Diluted Earnings per Share) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Basic (shares)	276,772	277,793
Diluted (shares)	279,157	280,245

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Acquisitions - Narrative (Details) - Placemat and rug manufacturing business $ in Millions	1 Months Ended
	Mar. 31, 2022 USD ($)
Business Combination, Separately Recognized Transactions [Line Items]
Ownership interest acquired	80.00%
Consideration transferred	$ 51.1

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Acquisitions - Estimated Fair Value of Net Assets Acquired and Liabilities Assumed (Details) - Placemat and rug manufacturing business $ in Thousands	Mar. 31, 2022 USD ($)
Net assets acquired and liabilities assumed
Cash and cash equivalents	$ 1,564
Real estate, furniture and equipment	2,527
Intangible assets	48,787
Other assets	11,275
Total assets acquired	64,153
Other liabilities assumed	(5,417)
Noncontrolling interest	(7,600)
Net assets acquired	$ 51,136

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Investments in Fixed Maturity Securities (Investments in fixed maturity securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Total held to maturity, Amortized Cost	$ 74,620	$ 74,368
Held-to-maturity, Allowance for Credit Loss	(378)	(387)	$ (730)	$ (798)
Held to maturity, Gross Unrealized Gains	7,418	11,445
Held to maturity, Gross Unrealized Losses	0	0
Total held to maturity, Fair Value	81,660	85,426
Total held to maturity, Carrying Value	74,242	73,981
Total available for sale, Amortized Cost	16,764,083	16,396,936
Available-for-sale, Allowance for Credit Loss	(26,153)	(22,238)	(20,009)	(1,782)
Total available for sale, Gross Unrealized Gains	67,990	278,207
Total available for sale, Gross Unrealized Losses	(453,966)	(124,213)
Total available for sale, Fair Value	16,351,954	16,528,692
Total available for sale, Carrying Value	16,351,954	16,528,692
Total investments in fixed maturity securities, Amortized Value	16,838,703	16,471,304
Fixed maturity securities, allowance for credit loss	(26,531)	(22,625)
Total investments in fixed maturity securities, Gross Unrealized Gains	75,408	289,652
Total investments in fixed maturity securities, Gross Unrealized Losses	(453,966)	(124,213)
Total investments in fixed maturity securities, Fair Value	16,433,614	16,614,118
Total investments in fixed maturity securities, Carrying Value	16,426,196	16,602,673
State and municipal
Debt Securities, Available-for-sale [Line Items]
Total held to maturity, Amortized Cost	70,165	69,539
Held-to-maturity, Allowance for Credit Loss	(378)	(387)
Held to maturity, Gross Unrealized Gains	7,094	10,813
Held to maturity, Gross Unrealized Losses	0	0
Total held to maturity, Fair Value	76,881	79,965
Total held to maturity, Carrying Value	69,787	69,152
Total available for sale, Amortized Cost	3,078,004	3,176,042
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	38,794	137,650
Total available for sale, Gross Unrealized Losses	(60,924)	(9,559)
Total available for sale, Fair Value	3,055,874	3,304,133
Total available for sale, Carrying Value	3,055,874	3,304,133
Residential mortgage-backed
Debt Securities, Available-for-sale [Line Items]
Total held to maturity, Amortized Cost	4,455	4,829
Held-to-maturity, Allowance for Credit Loss	0	0
Held to maturity, Gross Unrealized Gains	324	632
Held to maturity, Gross Unrealized Losses	0	0
Total held to maturity, Fair Value	4,779	5,461
Total held to maturity, Carrying Value	4,455	4,829
Total available for sale, Amortized Cost	1,179,468	940,744
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	2,417	9,896
Total available for sale, Gross Unrealized Losses	(60,650)	(11,321)
Total available for sale, Fair Value	1,121,235	939,319
Total available for sale, Carrying Value	1,121,235	939,319
U.S. government and government agency
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	837,167	851,128
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	2,397	8,509
Total available for sale, Gross Unrealized Losses	(20,716)	(4,294)
Total available for sale, Fair Value	818,848	855,343
Total available for sale, Carrying Value	818,848	855,343
Special revenue
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	1,948,586	2,016,382
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	12,944	62,961
Total available for sale, Gross Unrealized Losses	(44,803)	(5,706)
Total available for sale, Fair Value	1,916,727	2,073,637
Total available for sale, Carrying Value	1,916,727	2,073,637
State general obligation
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	378,408	388,110
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	7,043	23,152
Total available for sale, Gross Unrealized Losses	(6,574)	(1,015)
Total available for sale, Fair Value	378,877	410,247
Total available for sale, Carrying Value	378,877	410,247
Pre-refunded
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	165,882	202,633
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	6,216	14,891
Total available for sale, Gross Unrealized Losses	0	(574)
Total available for sale, Fair Value	172,098	216,950
Total available for sale, Carrying Value	172,098	216,950
Corporate backed
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	175,070	166,943
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	1,407	7,191
Total available for sale, Gross Unrealized Losses	(4,472)	(1,532)
Total available for sale, Fair Value	172,005	172,602
Total available for sale, Carrying Value	172,005	172,602
Local general obligation
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	410,058	401,974
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	11,184	29,455
Total available for sale, Gross Unrealized Losses	(5,075)	(732)
Total available for sale, Fair Value	416,167	430,697
Total available for sale, Carrying Value	416,167	430,697
Commercial
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	266,921	125,709
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	339	3,388
Total available for sale, Gross Unrealized Losses	(3,759)	(341)
Total available for sale, Fair Value	263,501	128,756
Total available for sale, Carrying Value	263,501	128,756
Mortgage-backed
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	1,446,389	1,066,453
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	2,756	13,284
Total available for sale, Gross Unrealized Losses	(64,409)	(11,662)
Total available for sale, Fair Value	1,384,736	1,068,075
Total available for sale, Carrying Value	1,384,736	1,068,075
Asset-backed
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	4,319,535	4,504,950
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	1,459	4,409
Total available for sale, Gross Unrealized Losses	(63,573)	(18,794)
Total available for sale, Fair Value	4,257,421	4,490,565
Total available for sale, Carrying Value	4,257,421	4,490,565
Industrial
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	3,373,710	3,231,520
Available-for-sale, Allowance for Credit Loss		(16)
Total available for sale, Gross Unrealized Gains	12,708	62,751
Total available for sale, Gross Unrealized Losses	(115,614)	(21,092)
Total available for sale, Fair Value	3,270,804	3,273,163
Total available for sale, Carrying Value	3,270,804	3,273,163
Financial
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	1,747,275	1,739,282
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	4,612	30,709
Total available for sale, Gross Unrealized Losses	(45,155)	(6,591)
Total available for sale, Fair Value	1,706,732	1,763,400
Total available for sale, Carrying Value	1,706,732	1,763,400
Utilities
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	422,354	396,242
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	1,806	13,262
Total available for sale, Gross Unrealized Losses	(14,434)	(3,202)
Total available for sale, Fair Value	409,726	406,302
Total available for sale, Carrying Value	409,726	406,302
Other
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	206,526	154,210
Available-for-sale, Allowance for Credit Loss	0	0
Total available for sale, Gross Unrealized Gains	47	125
Total available for sale, Gross Unrealized Losses	(5,328)	(1,525)
Total available for sale, Fair Value	201,245	152,810
Total available for sale, Carrying Value	201,245	152,810
Corporate
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	5,749,865	5,521,254
Available-for-sale, Allowance for Credit Loss	0	(16)	(16)	(518)
Total available for sale, Gross Unrealized Gains	19,173	106,847
Total available for sale, Gross Unrealized Losses	(180,531)	(32,410)
Total available for sale, Fair Value	5,588,507	5,595,675
Total available for sale, Carrying Value	5,588,507	5,595,675
Foreign government
Debt Securities, Available-for-sale [Line Items]
Total available for sale, Amortized Cost	1,333,123	1,277,109
Available-for-sale, Allowance for Credit Loss	(26,153)	(22,222)	$ (19,993)	$ (1,264)
Total available for sale, Gross Unrealized Gains	3,411	7,508
Total available for sale, Gross Unrealized Losses	(63,813)	(47,494)
Total available for sale, Fair Value	1,246,568	1,214,901
Total available for sale, Carrying Value	$ 1,246,568	$ 1,214,901

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Investments in Fixed Maturity Securities (HTM Allowance for Credit Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward]
Allowance for expected credit losses, beginning of period	$ 387	$ 798
Cumulative effect adjustment resulting from changes in accounting principles	378	730
Provision for expected credit losses	(9)	(68)
Allowance for expected credit losses, end of period	$ 378	$ 730

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Investments in Fixed Maturity Securities (AFS Allowance for Credit Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Allowance for expected credit losses, beginning of period	$ 22,238	$ 1,782
Cumulative effect adjustment resulting from changes in accounting principles	26,153	20,009
Expected credit losses on securities for which credit losses were not previously recorded	484	19,006
Expected credit losses (gains) on securities for which credit losses were previously recorded	3,431	(774)
Reduction due to disposals	0	(5)
Allowance for expected credit losses, end of period	26,153	20,009
Foreign government
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Allowance for expected credit losses, beginning of period	22,222	1,264
Cumulative effect adjustment resulting from changes in accounting principles	26,153	19,993
Expected credit losses on securities for which credit losses were not previously recorded	484	18,990
Expected credit losses (gains) on securities for which credit losses were previously recorded	3,447	(261)
Reduction due to disposals	0	0
Allowance for expected credit losses, end of period	26,153	19,993
Corporate
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward]
Allowance for expected credit losses, beginning of period	16	518
Cumulative effect adjustment resulting from changes in accounting principles	0	16
Expected credit losses on securities for which credit losses were not previously recorded	0	16
Expected credit losses (gains) on securities for which credit losses were previously recorded	(16)	(513)
Reduction due to disposals	0	(5)
Allowance for expected credit losses, end of period	$ 0	$ 16

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Investments in Fixed Maturity Securities (Amortized cost and fair value of fixed maturity securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Amortized Cost, Due in one year or less	$ 1,472,865
Amortized Cost, Due after one year through five years	7,903,303
Amortized Cost, Due after five years through ten years	4,029,040
Amortized Cost, Due after ten years	1,982,273
Amortized Cost, Mortgaged-backed securities	1,450,844
Total investments in fixed maturity securities, Amortized Value	16,838,325
Fair Value, Due in one year or less	1,461,188
Fair Value, Due after one year through five years	7,756,952
Fair Value, Due after five years through ten years	3,898,727
Fair Value, Due after ten years	1,927,232
Fair Value, Mortgage-backed securities	1,389,515
Total investments in fixed maturity securities, Fair Value	16,433,614	$ 16,614,118
Cumulative effect adjustment resulting from changes in accounting principles	$ 378	$ 387	$ 730	$ 798

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Investments in Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Equity securities	$ 1,126,491	$ 941,243
Fair Value
Debt Securities, Available-for-sale [Line Items]
Cost	962,079	870,045
Gross Unrealized, Gains	194,759	100,275
Gross Unrealized, Losses	(30,347)	(29,077)
Equity securities	1,126,491	941,243
Fair Value | Common stock
Debt Securities, Available-for-sale [Line Items]
Cost	699,566	619,896
Gross Unrealized, Gains	191,842	92,401
Gross Unrealized, Losses	(8,091)	(16,894)
Equity securities	883,317	695,403
Fair Value | Preferred stocks
Debt Securities, Available-for-sale [Line Items]
Cost	262,513	250,149
Gross Unrealized, Gains	2,917	7,874
Gross Unrealized, Losses	(22,256)	(12,183)
Equity securities	243,174	245,840
Carrying Value
Debt Securities, Available-for-sale [Line Items]
Equity securities	1,126,491	941,243
Carrying Value | Common stock
Debt Securities, Available-for-sale [Line Items]
Equity securities	883,317	695,403
Carrying Value | Preferred stocks
Debt Securities, Available-for-sale [Line Items]
Equity securities	$ 243,174	$ 245,840

XML

Arbitrage Trading Account (Details) - USD ($)	Mar. 31, 2022	Dec. 31, 2021
Derivative [Line Items]
Arbitrage trading account	$ 1,189,000,000	$ 1,180,000,000
Short | Options held
Derivative [Line Items]
Fair value of derivative	242,000
Notional amount of derivative	$ 29,200,000

XML

Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Net Investment Income [Line Items]
Gross investment income	$ 175,485	$ 160,027
Investment expense	(1,973)	(1,450)
Net investment income	173,512	158,577
Fixed maturity securities, including cash and cash equivalents and loans receivable
Net Investment Income [Line Items]
Gross investment income	101,284	94,677
Investment funds
Net Investment Income [Line Items]
Investment funds	52,012	38,935
Arbitrage trading account
Net Investment Income [Line Items]
Gross investment income	9,187	19,074
Equity securities
Net Investment Income [Line Items]
Gross investment income	2,146	1,161
Real estate
Net Investment Income [Line Items]
Gross investment income	$ 10,856	$ 6,180

XML

Investment Funds (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Unfunded commitments	$ 615,000
Investment funds	1,545,648		$ 1,480,612
Income (Loss) from Investment Funds	52,014	$ 38,935
Written premiums ceded	$ 446,582	434,674
Lifson Re
Schedule of Equity Method Investments [Line Items]
Percentage of reinsurance placements of share placed amounts	22.50%
Written premiums ceded	$ 89,000	53,000
Financial services
Schedule of Equity Method Investments [Line Items]
Investment funds	283,897		273,690
Income (Loss) from Investment Funds	16,364	4,434
Transportation
Schedule of Equity Method Investments [Line Items]
Investment funds	454,701		431,818
Income (Loss) from Investment Funds	25,932	17,142
Real Estate
Schedule of Equity Method Investments [Line Items]
Investment funds	341,022		336,688
Income (Loss) from Investment Funds	11,179	6,228
Energy
Schedule of Equity Method Investments [Line Items]
Investment funds	136,401		150,224
Income (Loss) from Investment Funds	(892)	3,320
Other funds
Schedule of Equity Method Investments [Line Items]
Investment funds	329,627		288,192
Income (Loss) from Investment Funds	(569)	$ 7,811
Deferred compensation trust assets	$ 32,000		$ 34,000

XML

Real Estate (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Real Estate [Abstract]
Properties in operation	$ 1,052,198	$ 1,626,826
Properties under development	223,959	225,682
Total	$ 1,276,157	$ 1,852,508

XML

Real Estate (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Real Estate [Abstract]
Accumulated depreciation and amortization on properties	$ 32,031,000		$ 57,391,000
Real estate depreciation expense	4,788,000	$ 4,890,000
Lease future minimum payments 2021	24,004,686
Lease future minimum payments 2022	30,750,724
Lease future minimum payments 2023	30,466,934
Lease future minimum payments 2024	27,802,134
Lease future minimum payments 2025	25,807,966
Lease future minimum payments 2026	24,984,457
Lease future minimum payments there after	$ 476,939,991

XML

Loans Receivable (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	$ 115,097	$ 115,172
Loans receivable	115,556	116,534
Loans in nonaccrual status	0	0
Real estate loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	89,213	89,431
Loans receivable	89,672	90,793
Commercial loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable, gross	25,884	25,741
Loans receivable	$ 25,884	$ 25,741
Loans receivable maturity term	10 years

XML

Loans Receivable - Allowance For Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for expected credit losses, beginning of period	$ 1,718	$ 5,437
Cumulative effect adjustment resulting from changes in accounting principles	1,429	4,198
Provision for expected credit losses	(289)	(1,239)
Allowance for expected credit losses, end of period	1,429	4,198
Real estate loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for expected credit losses, beginning of period	1,362	1,683
Cumulative effect adjustment resulting from changes in accounting principles	1,295	1,608
Provision for expected credit losses	(67)	(75)
Allowance for expected credit losses, end of period	1,295	1,608
Commercial loans
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for expected credit losses, beginning of period	356	3,754
Cumulative effect adjustment resulting from changes in accounting principles	134	2,590
Provision for expected credit losses	(222)	(1,164)
Allowance for expected credit losses, end of period	$ 134	$ 2,590

XML

Net Investment Gains (Losses) (Net Investment Gains (Losses)) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]
Fixed maturity securities, gains	$ 1,705	$ 8,240
Fixed maturity securities, losses	(2,984)	(2,071)
Net realized gains on investment sales	905	8,572
Change in unrealized gains (losses)	93,213	(24,335)
Investment funds	(2,162)	47,671
Real estate (2)	286,192	12,909
Loans receivable	(32)	0
Other	(6,955)	773
Net realized and unrealized gains on investments in earnings before allowance for expected credit losses	369,882	51,759
Fixed maturity securities	(3,906)	(18,159)
Loans receivable	289	1,239
Change in allowance for expected credit losses on investments	(3,617)	(16,920)
Net investment gains	366,265	34,839
Income tax expense	(78,442)	(5,887)
After-tax net investment gains	$ 287,823	$ 28,952

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Net Investment Gains (Losses) (Change in Unrealized Gains (Losses) of Available For Sales Securities) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Realized and Unrealized Investment Gains Losses [Line Items]
Total change in unrealized investment losses	$ (539,449)	$ (113,735)
Income tax benefit	115,904	23,605
Noncontrolling interests	(1)	0
Total change in unrealized gains	(423,546)	(90,130)
Debt securities
Realized and Unrealized Investment Gains Losses [Line Items]
Total change in unrealized investment losses	(540,263)	(122,568)
Fixed maturity securities with allowance for expected credit losses
Realized and Unrealized Investment Gains Losses [Line Items]
Total change in unrealized investment losses	293	10,355
Investment funds
Realized and Unrealized Investment Gains Losses [Line Items]
Total change in unrealized investment losses	469	(1,020)
Other
Realized and Unrealized Investment Gains Losses [Line Items]
Total change in unrealized investment losses	$ 52	$ (502)

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Fixed Maturity Securities In An Unrealized Loss Position (Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt securities
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	$ 11,489,692	$ 8,723,575
Gross Unrealized Losses, Less than 12 Months	359,191	81,947
Fair Value, 12 Months or Greater	1,052,185	361,235
Gross Unrealized Losses, 12 Months or Greater	94,775	42,266
Fair Value, Total	12,541,877	9,084,810
Gross Unrealized Losses, Total	453,966	124,213
U.S. government and government agency
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	547,027	487,712
Gross Unrealized Losses, Less than 12 Months	18,521	4,026
Fair Value, 12 Months or Greater	36,307	17,021
Gross Unrealized Losses, 12 Months or Greater	2,195	268
Fair Value, Total	583,334	504,733
Gross Unrealized Losses, Total	20,716	4,294
State and municipal
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	1,360,055	502,333
Gross Unrealized Losses, Less than 12 Months	51,579	7,403
Fair Value, 12 Months or Greater	95,853	29,547
Gross Unrealized Losses, 12 Months or Greater	9,345	2,156
Fair Value, Total	1,455,908	531,880
Gross Unrealized Losses, Total	60,924	9,559
Mortgage-backed
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	1,069,979	558,751
Gross Unrealized Losses, Less than 12 Months	49,408	6,900
Fair Value, 12 Months or Greater	140,480	106,130
Gross Unrealized Losses, 12 Months or Greater	15,001	4,762
Fair Value, Total	1,210,459	664,881
Gross Unrealized Losses, Total	64,409	11,662
Asset-backed
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	3,898,607	3,832,944
Gross Unrealized Losses, Less than 12 Months	61,254	18,503
Fair Value, 12 Months or Greater	186,663	75,385
Gross Unrealized Losses, 12 Months or Greater	2,319	291
Fair Value, Total	4,085,270	3,908,329
Gross Unrealized Losses, Total	63,573	18,794
Corporate
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	3,805,020	2,582,860
Gross Unrealized Losses, Less than 12 Months	148,708	29,322
Fair Value, 12 Months or Greater	381,306	51,095
Gross Unrealized Losses, 12 Months or Greater	31,823	3,088
Fair Value, Total	4,186,326	2,633,955
Gross Unrealized Losses, Total	180,531	32,410
Foreign government
Debt Securities, Available-for-sale [Line Items]
Fair Value, Less than 12 Months	809,004	758,975
Gross Unrealized Losses, Less than 12 Months	29,721	15,793
Fair Value, 12 Months or Greater	211,576	82,057
Gross Unrealized Losses, 12 Months or Greater	34,092	31,701
Fair Value, Total	1,020,580	841,032
Gross Unrealized Losses, Total	$ 63,813	$ 47,494

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Fixed Maturity Securities In An Unrealized Loss Position (Non-Investment Grade Fixed Maturity Securities) (Details) $ in Thousands	Mar. 31, 2022 USD ($) position	Dec. 31, 2021 USD ($)
Corporate
Debt Securities, Available-for-sale [Line Items]
Aggregate Fair Value	$ 4,186,326	$ 2,633,955
Gross Unrealized Loss	180,531	32,410
State and municipal
Debt Securities, Available-for-sale [Line Items]
Aggregate Fair Value	1,455,908	531,880
Gross Unrealized Loss	60,924	9,559
Mortgage-backed
Debt Securities, Available-for-sale [Line Items]
Aggregate Fair Value	1,210,459	664,881
Gross Unrealized Loss	64,409	11,662
Asset-backed
Debt Securities, Available-for-sale [Line Items]
Aggregate Fair Value	4,085,270	3,908,329
Gross Unrealized Loss	$ 63,573	$ 18,794
Noninvestment Grade Investments at Loss Position
Debt Securities, Available-for-sale [Line Items]
Number of Securities | position	58
Aggregate Fair Value	$ 177,782
Gross Unrealized Loss	$ 35,386
Noninvestment Grade Investments at Loss Position | Foreign government
Debt Securities, Available-for-sale [Line Items]
Number of Securities | position	37
Aggregate Fair Value	$ 132,306
Gross Unrealized Loss	$ 30,753
Noninvestment Grade Investments at Loss Position | Corporate
Debt Securities, Available-for-sale [Line Items]
Number of Securities | position	12
Aggregate Fair Value	$ 30,071
Gross Unrealized Loss	$ 3,158
Noninvestment Grade Investments at Loss Position | State and municipal
Debt Securities, Available-for-sale [Line Items]
Number of Securities | position	1
Aggregate Fair Value	$ 13,583
Gross Unrealized Loss	$ 1,422
Noninvestment Grade Investments at Loss Position | Mortgage-backed
Debt Securities, Available-for-sale [Line Items]
Number of Securities | position	7
Aggregate Fair Value	$ 1,785
Gross Unrealized Loss	$ 48
Noninvestment Grade Investments at Loss Position | Asset-backed
Debt Securities, Available-for-sale [Line Items]
Number of Securities | position	1
Aggregate Fair Value	$ 37
Gross Unrealized Loss	$ 5

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Fair Value Measurements (Assets and Liabilities Measured At Fair Value, On a Recurring Basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets:
Total fixed maturity securities available for sale	$ 16,351,954	$ 16,528,692
Equity securities	1,126,491	941,243
Arbitrage trading account	1,189,000	1,180,000
Fair Value, Measurements, Recurring
Assets:
Total fixed maturity securities available for sale	16,351,954	16,528,692
Equity securities	1,126,491	941,243
Arbitrage trading account	1,188,910	1,179,606
Assets, fair value disclosure	18,667,355	18,649,541
Liabilities:
Trading account securities sold but not yet purchased	241	1,169
Fair Value, Measurements, Recurring | U.S. government and government agency
Assets:
Total fixed maturity securities available for sale	818,848	855,343
Fair Value, Measurements, Recurring | State and municipal
Assets:
Total fixed maturity securities available for sale	3,055,874	3,304,133
Fair Value, Measurements, Recurring | Mortgage-backed
Assets:
Total fixed maturity securities available for sale	1,384,736	1,068,075
Fair Value, Measurements, Recurring | Asset-backed
Assets:
Total fixed maturity securities available for sale	4,257,421	4,490,565
Fair Value, Measurements, Recurring | Corporate
Assets:
Total fixed maturity securities available for sale	5,588,507	5,595,675
Fair Value, Measurements, Recurring | Foreign government
Assets:
Total fixed maturity securities available for sale	1,246,568	1,214,901
Fair Value, Measurements, Recurring | Common stocks
Assets:
Equity securities	883,317	695,403
Fair Value, Measurements, Recurring | Preferred stocks
Assets:
Equity securities	243,174	245,840
Level 1 | Fair Value, Measurements, Recurring
Assets:
Total fixed maturity securities available for sale	0	0
Equity securities	877,387	684,470
Arbitrage trading account	1,186,353	1,153,079
Assets, fair value disclosure	2,063,740	1,837,549
Liabilities:
Trading account securities sold but not yet purchased	241	1,137
Level 1 | Fair Value, Measurements, Recurring | U.S. government and government agency
Assets:
Total fixed maturity securities available for sale	0	0
Level 1 | Fair Value, Measurements, Recurring | State and municipal
Assets:
Total fixed maturity securities available for sale	0	0
Level 1 | Fair Value, Measurements, Recurring | Mortgage-backed
Assets:
Total fixed maturity securities available for sale	0	0
Level 1 | Fair Value, Measurements, Recurring | Asset-backed
Assets:
Total fixed maturity securities available for sale	0	0
Level 1 | Fair Value, Measurements, Recurring | Corporate
Assets:
Total fixed maturity securities available for sale	0	0
Level 1 | Fair Value, Measurements, Recurring | Foreign government
Assets:
Total fixed maturity securities available for sale	0	0
Level 1 | Fair Value, Measurements, Recurring | Common stocks
Assets:
Equity securities	877,387	684,470
Level 1 | Fair Value, Measurements, Recurring | Preferred stocks
Assets:
Equity securities	0	0
Level 2 | Fair Value, Measurements, Recurring
Assets:
Total fixed maturity securities available for sale	16,351,954	16,528,692
Equity securities	232,433	236,183
Arbitrage trading account	2,557	26,527
Assets, fair value disclosure	16,586,944	16,791,402
Liabilities:
Trading account securities sold but not yet purchased	0	32
Level 2 | Fair Value, Measurements, Recurring | U.S. government and government agency
Assets:
Total fixed maturity securities available for sale	818,848	855,343
Level 2 | Fair Value, Measurements, Recurring | State and municipal
Assets:
Total fixed maturity securities available for sale	3,055,874	3,304,133
Level 2 | Fair Value, Measurements, Recurring | Mortgage-backed
Assets:
Total fixed maturity securities available for sale	1,384,736	1,068,075
Level 2 | Fair Value, Measurements, Recurring | Asset-backed
Assets:
Total fixed maturity securities available for sale	4,257,421	4,490,565
Level 2 | Fair Value, Measurements, Recurring | Corporate
Assets:
Total fixed maturity securities available for sale	5,588,507	5,595,675
Level 2 | Fair Value, Measurements, Recurring | Foreign government
Assets:
Total fixed maturity securities available for sale	1,246,568	1,214,901
Level 2 | Fair Value, Measurements, Recurring | Common stocks
Assets:
Equity securities	1,230	1,639
Level 2 | Fair Value, Measurements, Recurring | Preferred stocks
Assets:
Equity securities	231,203	234,544
Level 3 | Fair Value, Measurements, Recurring
Assets:
Total fixed maturity securities available for sale	0	0
Equity securities	16,671	20,590
Arbitrage trading account	0	0
Assets, fair value disclosure	16,671	20,590
Liabilities:
Trading account securities sold but not yet purchased	0	0
Level 3 | Fair Value, Measurements, Recurring | U.S. government and government agency
Assets:
Total fixed maturity securities available for sale	0	0
Level 3 | Fair Value, Measurements, Recurring | State and municipal
Assets:
Total fixed maturity securities available for sale	0	0
Level 3 | Fair Value, Measurements, Recurring | Mortgage-backed
Assets:
Total fixed maturity securities available for sale	0	0
Level 3 | Fair Value, Measurements, Recurring | Asset-backed
Assets:
Total fixed maturity securities available for sale	0	0
Level 3 | Fair Value, Measurements, Recurring | Corporate
Assets:
Total fixed maturity securities available for sale	0	0
Level 3 | Fair Value, Measurements, Recurring | Foreign government
Assets:
Total fixed maturity securities available for sale	0	0
Level 3 | Fair Value, Measurements, Recurring | Common stocks
Assets:
Equity securities	4,700	9,294
Level 3 | Fair Value, Measurements, Recurring | Preferred stocks
Assets:
Equity securities	$ 11,971	$ 11,296

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Fair Value Measurements (Summarize Changes in Level 3 Assets) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, impairments		$ 0
Securities transferred into or out of level 3, net	$ 1
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	20,590,000	19,546,000
Assets, earnings	(4,594,000)	613,000
Assets, other comprehensive income	0	0
Impairment of Intangible Assets (Excluding Goodwill)	0
Assets, purchases	675,000	2,000,000
Assets, (sales)	0	(1,569,000)
Assets, maturities	0
Assets. transfers out		0
Securities transferred into or out of level 3, net	0
Assets, ending balance	16,671,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value			$ 0	$ 0
Liabilities, earnings	(1,000)	1,000
Liabilities, other comprehensive income	0	0
Liabilities, impairments	0	0
Liabilities, purchases	0	(1,000)
Liabilities, (sales)	0	0
Liabilities, maturities	0	0
Liabilities, transfers out	1,000	0
Level 3 | Debt securities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	0	1,000,000
Assets, earnings		0
Assets, other comprehensive income		0
Assets, impairments		0
Assets, purchases		0
Assets, (sales)		(1,000,000)
Assets. transfers out		0
Level 3 | Real estate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	20,590,000	18,546,000
Assets, earnings	(4,594,000)	605,000
Assets, other comprehensive income	0	0
Assets, impairments	0	0
Assets, purchases	675,000	2,000,000
Assets, (sales)	0	(561,000)
Assets, maturities		0
Assets. transfers out	0	0
Assets, ending balance	16,671,000
Level 3 | Common stock
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	9,294,000	9,215,000
Assets, earnings	(4,594,000)	640,000
Assets, other comprehensive income	0	0
Assets, impairments	0	0
Assets, purchases	0	0
Assets, (sales)	0	(561,000)
Assets. transfers out	0	0
Assets, ending balance	4,700,000
Level 3 | Preferred stocks
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	11,296,000	9,331,000
Assets, earnings	0	(35,000)
Assets, other comprehensive income	0	0
Assets, impairments	0	0
Assets, purchases	675,000	2,000,000
Assets, (sales)	0	0
Assets. transfers out	0	0
Assets, ending balance	11,971,000
Level 3 | Arbitrage trading account
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	0	0
Assets, earnings	0	8,000
Assets, other comprehensive income	0	0
Impairment of Intangible Assets (Excluding Goodwill)	0
Assets, impairments		0
Assets, purchases	0	0
Assets, (sales)	0	(8,000)
Assets, maturities	0
Securities transferred into or out of level 3, net	0
Assets, ending balance	0
Level 3 | Corporate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Assets, beginning balance	$ 0	1,000,000
Assets, earnings		0
Assets, other comprehensive income		0
Impairment of Intangible Assets (Excluding Goodwill)		0
Assets, purchases		0
Assets, (sales)		(1,000,000)
Assets, maturities		0
Securities transferred into or out of level 3, net		$ 0

XML

Fair Value Measurements (Narrative) (Details)	3 Months Ended
	Mar. 31, 2022 USD ($)
Fair Value Disclosures [Abstract]
Securities transferred into or out of level 3, net	$ 1

XML

Reserves for Loss and Loss Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Net reserves at beginning of period	$ 12,848,362	$ 11,620,393
Net provision for losses and loss expenses:
Claims occurring during the current year	1,327,695	1,115,173
Decrease in estimates for claims occurring in prior years	3,761	(859)
Loss reserve discount accretion	7,796	7,278
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims	1,339,252	1,121,592
Net payments for claims:
Current year	84,598	97,586
Prior years	933,656	794,472
Total	1,018,254	892,058
Foreign currency translation	9,983	(14,779)
Net reserves at end of period	13,179,343	11,835,148	$ 12,848,362
Ceded reserves at end of period	2,543,546	2,245,380
Gross reserves at end of period	$ 15,722,889	$ 14,080,528	$ 15,390,888

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Reserves for Loss and Loss Expenses (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Liability for Claims and Claims Adjustment Expense [Line Items]
Net of loss reserve discounts	$ 7	$ 5
Increase (decrease) in estimates for claims	4	(5)
Adjustment expense	1	3
Liability recognized for best estimate net of reinsurance	290
Liability recognized for best estimate net of reinsurance, reported losses	268
Liability recognized for best estimate net of reinsurance, incurred but not reported (IBNR)	22
Liability recognized for best estimate net of reinsurance, current accident year losses	1
Insurance
Liability for Claims and Claims Adjustment Expense [Line Items]
Liability recognized for best estimate net of reinsurance	246
Favorable reserve development net of premium offsets	6	6
Reinsurance & Monoline Excess
Liability for Claims and Claims Adjustment Expense [Line Items]
Liability recognized for best estimate net of reinsurance	44
Unfavorable reserve development net of premium offsets	$ 5	$ 3

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Fair Value of Financial Instruments (Carrying Amounts and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets:
Equity securities	$ 1,126,491	$ 941,243
Arbitrage trading account	1,189,000	1,180,000
Loans receivable	115,556	116,534
Liabilities:
Trading account payable to brokers and clearing organizations	56,652	53,636
Carrying Value
Assets:
Fixed maturity securities	16,426,196	16,602,673
Equity securities	1,126,491	941,243
Arbitrage trading account	1,188,910	1,179,606
Loans receivable	115,097	115,172
Cash and cash equivalents	2,114,841	1,568,843
Due from broker	0	20,448
Liabilities:
Due to broker	77,601	0
Trading account payable to brokers and clearing organizations	56,652	53,636
Trading account securities sold but not yet purchased	241	1,169
Senior notes and other debt	1,834,155	2,259,416
Subordinated debentures	1,007,832	1,007,652
Fair Value
Assets:
Fixed maturity securities	16,433,614	16,614,118
Equity securities	1,126,491	941,243
Arbitrage trading account	1,188,910	1,179,606
Loans receivable	115,556	116,534
Cash and cash equivalents	2,114,841	1,568,843
Due from broker	0	20,448
Liabilities:
Due to broker	77,601	0
Trading account payable to brokers and clearing organizations	56,652	53,636
Trading account securities sold but not yet purchased	241	1,169
Senior notes and other debt	1,788,992	2,526,630
Subordinated debentures	$ 957,670	$ 1,095,600

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Premiums and Reinsurance Related Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020
Written premiums:
Written premiums, direct	$ 2,542,336	$ 2,177,162
Written premiums, assumed	317,500	307,550
Written premiums, ceded	(446,582)	(434,674)
Total net premiums written	2,413,254	2,050,038
Earned premiums:
Earned premiums, direct	2,404,597	2,003,045
Earned premiums, assumed	292,373	259,541
Earned premiums, ceded	(447,883)	(412,630)
Net premiums earned	2,249,087	1,849,956
Ceded losses and loss expenses incurred	243,294	298,740
Ceded commissions earned	117,445	101,680
Cumulative effect adjustment resulting from changes in accounting principles	$ 7,655	$ 7,373	$ 7,713	$ 7,801

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Premiums and Reinsurance Related Information - Premiums and Reinsurance, Allowance For Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Premium Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for expected credit losses, beginning of period	$ 25,218	$ 22,883
Cumulative effect adjustment resulting from changes in accounting principles	28,236	24,264
Provision for expected credit losses	3,018	1,381
Allowance for expected credit losses, end of period	28,236	24,264
Reinsurance Recoverable, Allowance for Credit Loss [Roll Forward]
Allowance for expected credit losses, beginning of period	7,713	7,801
Cumulative effect adjustment resulting from changes in accounting principles	7,655	7,373
Reinsurance Recoverable, Credit Loss Expense (Reversal)	(58)	(428)
Allowance for expected credit losses, end of period	$ 7,655	$ 7,373

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Restricted Stock Units (Summary of Restricted Stock Units Issued) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item]
Share based compensation expense	$ 11,000	$ 12,000
Restricted stock
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item]
Restricted stock units (in units)	1,660	885
Fair Value	$ 150	$ 40
Minimum | Restricted stock
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item]
Award vesting period	3 years
Maximum | Restricted stock
Share-Based Compensation Arrangement by Share-based Payment Award [Line Item]
Award vesting period	5 years

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Leases (Lease Cost) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Lease cost	$ 10,198	$ 11,264
Cash paid for amounts included in the measurement of lease liabilities reported in operating cash flows	10,993	11,377
Right-of-use assets obtained in exchange for new lease liabilities	$ 17,269	$ 30

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Leases (Supplemental Balance Sheet Information) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
Operating lease, right-of-use asset	$ 180,424	$ 156,942
Operating lease, liability	$ 217,086	$ 195,590
Weighted-average remaining lease term	7 years 3 months 18 days	6 years 8 months 12 days
Weighted-average discount rate	4.58%	5.94%

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Leases (Maturities of Operating Lease Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Leases [Abstract]
2022	$ 34,336
2023	45,618
2024	39,676
2025	29,793
2026	23,150
Thereafter	77,609
Total undiscounted future minimum lease payments	250,182
Less: Discount impact	33,096
Total lease liability	$ 217,086	$ 195,590

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Business Segments (Financial Information of Company Operating Segments) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	2
Segment Reporting Information [Line Items]
Earned Premiums (1)	$ 2,249,087	$ 1,849,956
Investment Income	173,512	158,577
Other	492,810	148,336
Total revenues	2,915,409	2,156,869
Pre-Tax Income (Loss)	732,433	296,068
Net Income (Loss) to Common Stockholders	590,638	229,525
Net investment gains	366,265	34,839
Net investment gains, net of tax	287,823	28,952
Corporate, other and eliminations
Segment Reporting Information [Line Items]
Earned Premiums (1)	0	0
Investment Income	8,435	15,632
Other	117,869	105,218
Total revenues	126,304	120,850
Pre-Tax Income (Loss)	(73,872)	(64,529)
Net Income (Loss) to Common Stockholders	(59,817)	(52,606)
Insurance
Segment Reporting Information [Line Items]
Earned Premiums (1)		1,604,979
Insurance | Operating Segments
Segment Reporting Information [Line Items]
Earned Premiums (1)	1,962,835	1,604,979
Investment Income	137,654	105,237
Other	8,676	8,279
Total revenues	2,109,165	1,718,495
Pre-Tax Income (Loss)	382,412	257,109
Net Income (Loss) to Common Stockholders	315,552	198,708
Reinsurance & Monoline Excess
Segment Reporting Information [Line Items]
Earned Premiums (1)		244,977
Reinsurance & Monoline Excess | Operating Segments
Segment Reporting Information [Line Items]
Earned Premiums (1)	286,252	244,977
Investment Income	27,423	37,708
Other	0	0
Total revenues	313,675	282,685
Pre-Tax Income (Loss)	57,628	68,649
Net Income (Loss) to Common Stockholders	47,080	54,471
Re-insurance - International | Operating Segments
Segment Reporting Information [Line Items]
Total revenues	96,000	88,000
Net investment gains
Segment Reporting Information [Line Items]
Earned Premiums (1)	0	0
Investment Income	0	0
Insurance-International Segment | Operating Segments
Segment Reporting Information [Line Items]
Total revenues	$ 235,000	$ 196,000

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Business Segments (Identifiable Assets by Segment) (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated Assets	$ 32,250,954	$ 32,047,876
Operating Segments | Insurance
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated Assets	25,057,202	24,403,918
Operating Segments | Reinsurance & Monoline Excess
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated Assets	5,058,976	4,917,985
Corporate, other and eliminations
Segment Reporting, Asset Reconciling Item [Line Items]
Consolidated Assets	$ 2,134,776	$ 2,725,973

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Business Segments (Net Premiums Earned By Major Line of Business) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue from External Customer [Line Items]
Net premiums earned	$ 2,249,087	$ 1,849,956
Insurance
Revenue from External Customer [Line Items]
Net premiums earned		1,604,979
Insurance | Operating Segments
Revenue from External Customer [Line Items]
Net premiums earned	1,962,835	1,604,979
Insurance | Other liability
Revenue from External Customer [Line Items]
Net premiums earned	754,456	611,404
Insurance | Short-tail lines
Revenue from External Customer [Line Items]
Net premiums earned	375,212	324,740
Insurance | Workers' compensation
Revenue from External Customer [Line Items]
Net premiums earned	285,423	267,449
Insurance | Commercial automobile
Revenue from External Customer [Line Items]
Net premiums earned	282,234	220,761
Insurance | Professional liability
Revenue from External Customer [Line Items]
Net premiums earned	265,510	180,626
Reinsurance & Monoline Excess
Revenue from External Customer [Line Items]
Net premiums earned		244,977
Reinsurance & Monoline Excess | Operating Segments
Revenue from External Customer [Line Items]
Net premiums earned	286,252	244,977
Reinsurance & Monoline Excess | Casualty reinsurance
Revenue from External Customer [Line Items]
Net premiums earned	184,122	149,638
Reinsurance & Monoline Excess | Monoline excess
Revenue from External Customer [Line Items]
Net premiums earned	50,234	49,466
Reinsurance & Monoline Excess | Property reinsurance
Revenue from External Customer [Line Items]
Net premiums earned	$ 51,896	$ 45,873

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Subsequent Event (Details) - Subsequent Event - Line of Credit $ in Millions	Apr. 01, 2022 USD ($)
Revolving Credit Facility
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 300
Higher borrowing capacity option	500
Letter of Credit
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 50