Insurance Liabilities

12 Months Ended

Dec. 31, 2025

Insurance [Abstract]

Insurance Liabilities

13. Insurance Liabilities

LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES (LOSS RESERVES)

Loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and loss adjustment expenses, less applicable discount. We regularly review and update the methods used to determine loss reserve estimates. Any adjustments resulting from this review are reflected currently in pre-tax income, except to the extent such adjustment impacts a deferred gain under a retroactive reinsurance agreement, in which case the ceded portion would be amortized into pre-tax income in subsequent periods. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development or reserve releases.

Our gross loss reserves before reinsurance and discount are net of contractual deductible recoverable amounts due from policyholders of approximately $13.8 billion and $12.1 billion at December 31, 2025 and 2024, respectively. These recoverable amounts are related to certain policies with high deductibles (in excess of high dollar amounts retained by the insured through self-insured retentions, deductibles, retrospective programs, or captive arrangements, each referred to generically as “deductibles”), primarily for U.S. Commercial casualty business. With respect to the deductible portion of the claim, we manage and pay the entire claim on behalf of the insured and are reimbursed by the insured for the deductible portion of the claim. Thus, these recoverable amounts represent a credit exposure to us. At December 31, 2025 and 2024 we held collateral of approximately $9.6 billion and $8.6 billion, respectively, for these deductible recoverable amounts, consisting primarily of letters of credit and funded trust agreements. Allowance for credit losses for the unsecured portion of these recoverable amounts was $14 million at both December 31, 2025 and 2024.

The following table presents the rollforward of activity in loss reserves:

Years Ended December 31,
(in millions)	2025		2024		2023
Liability for unpaid loss and loss adjustment expenses, beginning of year	$	69,168	$	70,393	$	75,167
Reinsurance recoverable	(29,026)		(30,289)		(32,102)
Net Liability for unpaid loss and loss adjustment expenses, beginning of year	40,142		40,104		43,065
Losses and loss adjustment expenses incurred:
Current year	14,440		14,363		15,100
Prior years, excluding discount and amortization of deferred gain	(216)		254		(392)
Prior years, discount charge (benefit)	168		354		307
Prior years, amortization of deferred gain on retroactive reinsurance(a)	(230)		(404)		(81)
Total losses and loss adjustment expenses incurred	14,162		14,567		14,934
Losses and loss adjustment expenses paid:
Current year	(3,901)		(3,694)		(3,836)
Prior years	(9,975)		(9,849)		(11,868)
Total losses and loss adjustment expenses paid	(13,876)		(13,543)		(15,704)
Other changes:
Foreign exchange effect	1,233		(996)		606
Losses and loss adjustment expenses recognized within gain on divestitures	58		—		569
Retroactive reinsurance adjustment (net of discount)(b)	76		15		158
Dispositions(c)	—		(5)		(3,505)
Reclassified to held for sale, net of reinsurance recoverables	—		—		(19)
Total other changes	1,367		(986)		(2,191)
Liability for unpaid loss and loss adjustment expenses, end of year:
Net liability for unpaid losses and loss adjustment expenses	41,795		40,142		40,104
Reinsurance recoverable	28,871		29,026		30,289
Total	$	70,666	$	69,168	$	70,393

(a)Includes $72 million, $82 million and $33 million for the retroactive reinsurance agreement with NICO covering U.S. asbestos exposures for the years ended December 31, 2025, 2024 and 2023, respectively.

(b)Includes benefit (charge) from change in discount on retroactive reinsurance of $45 million, $168 million and $150 million for the years ended December 31, 2025, 2024 and 2023, respectively.

(c)Includes amounts related to the sale of Validus Re through the date of disposition.

The following table presents the reconciliation of the net liability for unpaid losses and loss adjustment expenses in the following tables to Loss Reserves in the Consolidated Balance Sheets for the year ended December 31, 2025:

(in millions)	Net liability for unpaid losses and loss adjustment expenses as presented in the disaggregated tables below		Reinsurance recoverable on unpaid losses and loss adjustment expenses included in the disaggregated tables below		Gross liability for unpaid losses and loss adjustment expenses
U.S. Workers' Compensation (before discount)	$	3,445	$	4,633	$	8,078
U.S. Excess Casualty		3,153		2,961		6,114
U.S. Other Casualty		4,651		3,170		7,821
U.S. Financial Lines		5,270		1,516		6,786
U.S. Property and Special Risks		4,142		990		5,132
U.S. Personal Insurance		705		1,986		2,691
UK/Europe Casualty and Financial lines		8,288		2,376		10,664
UK/Europe Property and Special Risks		2,176		2,214		4,390
UK/Europe and Japan Personal Insurance		1,240		733		1,973
Total	$	33,070	$	20,579	$	53,649
Reconciling Items
Discount on workers' compensation lines						(2,063)
Other product lines*						16,351
Unallocated loss adjustment expenses						2,729
Total Loss Reserves					$	70,666

*Reinsurance recoverable for other product lines of $8.4 billion resulted in a net liability for unpaid losses and loss adjustment expenses of $7.9 billion for the year ended December 31, 2025.

Prior Year Development

In the sections below, we provide details by coverage group regarding incurred losses, reserve balances and prior year development. The first table below shows prior year development by coverage group, the first two columns of which will again be presented in the coverage group sections that follow. After this table we describe historical drivers of prior year development as well as actuarial methods and relevant terminology. The following coverage group sections present the undiscounted incurred losses and allocated loss adjustment expenses by accident year on a net basis after reinsurance, with separate presentation of the adverse development cover where applicable, excluding related amortization of the deferred gain. Each section also contains a description of the business included in that section. Finally, we show a table of claims payout patterns by coverage.

In 2017, we entered into adverse development reinsurance agreement (ADC) cessions with NICO under which we transferred to NICO 80 percent of the reserve risk on substantially all of our U.S. Commercial long-tail exposures for accident years 2015 and prior.

The following table presents the reconciliation of net prior year development before the ADC cessions from the tables below to the net prior year development after ADC cessions and amortization of deferred gain for the year ended December 31, 2025:

(in millions)		Prior Year Development Net of External Reinsurance Before ADC Cessions		Prior Year Development Net of External Reinsurance After ADC Cessions(a)		Reattribution of ADC Recovery and Other(b)		Amortization of Deferred Gain at Inception		Prior Year Development After Amortization and Reattribution
U.S. Workers' Compensation	$	(133)	$	(113)	$	(21)	$	(38)	$	(172)
U.S. Excess Casualty		303		82		33		(30)		85
U.S. Other Casualty		(92)		22		(2)		(28)		(8)
U.S. Financial Lines		(38)		(45)		—		(20)		(65)
U.S. Property and Special Risks		(118)		(150)		26		—		(124)
U.S. Personal Insurance		(11)		(11)		2		(1)		(10)
UK/Europe Casualty and Financial lines		216		216		—		—		216
UK/Europe Property and Special Risks		(18)		(14)		(5)		—		(19)
UK/Europe and Japan Personal Insurance		38		37		—		—		37
Other product lines		(469)		(448)		(33)		(7)		(488)
Subtotal, adjusted pre-tax basis	$	(322)	$	(424)	$	—	$	(124)	$	(548)
Businesses in run-off		106		(3)		—		—		(3)
Subtotal	$	(216)	$	(427)	$	—	$	(124)	$	(551)
Remove impact of Retroactive Reinsurance
Amortization of deferred gain at inception										124
Prior year development ceded under the Asbestos LPT										109
Prior year development ceded under the ADC										102
Total, prior years, excluding discount and amortization of deferred gain									$	(216)

(a)Change in net ultimate loss and loss adjustment expenses excludes the portion of prior year development we have ceded under the Asbestos Loss Portfolio Transfer (LPT) and the ADC, both of which are provided by NICO and are considered retroactive reinsurance under U.S. GAAP.

(b)Reattribution of the ADC recovery takes place annually as we model the future payments on the subject reserves. ADC recoverables are then reallocated by line based on payments expected to be made. Other includes an alignment of global specialty products as reported in International Commercial.

During 2025, we recognized favorable prior year loss reserve development of $216 million, net of external reinsurance but before ADC cessions, primarily driven by:

•Favorable development on U.S. Workers’ Compensation of $133 million reflecting favorable experience within Excess of Loss Sensitive offset by adverse development within Primary Guaranteed Cost and Defense Base Act business;

•Unfavorable development on U.S. Excess Casualty of $303 million driven by unfavorable development in Mass Tort, a large proportion of which was covered by the ADC;

•Favorable development on U.S Property and Special Risks of $118 million primarily driven by development in U.S. Property and Programs;

•Unfavorable development in UK/Europe Casualty and Financial Lines of $216 million driven by UK Financial Lines and EMEA Casualty, particularly within Auto and General Liability lines, partially offset by favorable development in EMEA Financial Lines;

•Favorable development of $469 million in total on other product lines primarily driven by Global Specialty, notably within Energy and Trade Credit, as well as development in short-tail Property; and

•Unfavorable development on Businesses in run-off of $106 million is primarily attributed to Asbestos development, which is entirely ceded under the LPT.

During 2024, we recognized unfavorable prior year loss reserve development of $254 million, net of external reinsurance but before ADC cessions, primarily driven by:

•Favorable development on U.S. Workers’ Compensation of $273 million reflecting continued favorable loss experience;

•Unfavorable development on U.S. Excess Casualty of $545 million driven by a large settlement of a legacy mass tort claim with the gross loss in accident years covered under the ADC and increased reserves related to claims emergence;

•Unfavorable development on U.S. Other Casualty of $12 million reflecting unfavorable development on Commercial Auto and Wholesale Primary General Liability, partially offset by favorability across numerous Casualty reserving classes;

•Unfavorable development in U.S. Financial Lines of $51 million due to unfavorable development in M&A and High Excess classes, offset by favorable experience across most reserving classes;

•Favorable development on U.S. Property and Special Risks of $44 million reflecting favorable loss experience in Retail and Wholesale Property, offset by development on prior year catastrophes;

•Favorable development in U.S. Personal Insurance of $23 million driven by favorable development on prior year catastrophes across several events primarily in the 2019-2023 accident years;

•Unfavorable development in UK/Europe Casualty and Financial Lines of $170 million driven by unfavorable development in UK Financial Lines partially offset by favorable development in EMEA Financial Lines, and unfavorable development in European Excess Casualty driven by claim-specific emergence on accident year 2016;

•Favorable development on UK/Europe Property and Special Risks of $35 million reflecting favorable development across most segments and geographies;

•Favorable development on UK/Europe and Japan Personal Insurance of $47 million primarily driven by Japan A&H and Auto, partially offset by unfavorable Personal Auto in EMEA;

•Favorable development of $299 million in total on other product lines primarily driven by Global Specialty which saw favorable development across multiple lines; and

•Unfavorable development on Businesses in run-off of $196 million is primarily attributed to Asbestos development of $85 million, which is entirely ceded under the LPT, and development on the Blackboard insurance portfolio of $112 million due to increased reported loss activity in general liability.

During 2023, we recognized favorable prior year loss reserve development of $392 million, net of external reinsurance but before ADC cessions, primarily driven by:

•Favorable development on U.S. Workers’ Compensation of $267 million due to a continuation of favorable loss cost trends in guaranteed cost and excess segments across most accident years;

•Favorable development on U.S. Excess Casualty of $32 million driven by favorable development on the Excess Construction Runoff Portfolio;

•Favorable development on U.S Other Casualty of $133 million largely driven by favorable experience in construction defect and construction wraps as well as guaranteed cost auto and general liability;

•Unfavorable development in U.S. Financial Lines of $94 million due to unfavorable development on High Attaching Excess Directors and Officers (D&O), M&A, Primary National D&O, Cyber data privacy claims, and Architects & Engineers, partially offset by favorable development on Primary Private Not for Profit D&O and Financial Institutions D&O;

•Favorable development on U.S. Property and Special Risks of $10 million reflecting favorable development on prior year catastrophes in the 2017-2021 accident years, offset by adverse development on prior year catastrophes in the 2022 accident year;

•Favorable development in U.S. Personal Insurance of $64 million driven by favorable development on prior year catastrophes across several events primarily in the 2017-2020 accident years;

•Unfavorable development in UK/Europe Casualty and Financial Lines of $165 million due to unfavorable development in auto liability in Europe and UK and in UK D&O and Commercial Professional Indemnity business, partially offset by favorable development in Financial Institutions Professional Indemnity and D&O in Europe and UK and Cyber and Commercial Professional Indemnity in Europe;

•Unfavorable development on UK/Europe Property and Special Risks of $81 million driven by unfavorable development on prior year catastrophes;

•Favorable development on UK/Europe and Japan Personal Insurance of $57 million driven by favorable development in Japan personal auto and A&H business; and

•Favorable development of $162 million in total on other product lines driven by favorable development in global specialty and financial lines in Canada and other International regions.

Our analyses and conclusions about prior year reserves also help inform our judgments about the current accident year loss and loss adjustment expense ratios we selected.

Loss Development Information

The following is information about incurred and paid loss developments as of December 31, 2025, net of reinsurance. The cumulative number of reported claims, the total of IBNR liabilities and expected development on reported loss included within the net incurred loss amounts are presented in the following section.

Reserving Methodology

We use a combination of methods to project ultimate losses for both long-tail and short-tail exposures, which include:

•Paid Development method: The Paid Development method estimates ultimate losses by reviewing paid loss patterns and selecting paid ultimate loss development factors. These factors are then applied to paid losses by applying them to accident years, with further expected changes in paid loss. Since the method does not rely on case reserves, it is not directly influenced by changes in the adequacy of case reserves.

•Incurred Development method: The Incurred Development method is similar to the Paid Development method, but it uses case incurred losses instead of paid losses. Since this method uses more data (case reserves in addition to paid losses) than the Paid Development method, the incurred development patterns may be less variable than paid development patterns.

•Expected Loss Ratio method: The Expected Loss Ratio method multiplies premiums by an expected loss ratio to produce ultimate loss estimates for each accident year. This method may be useful if loss development patterns are inconsistent, losses emerge very slowly, or there is relatively little loss history from which to estimate future losses. Expected loss ratio methods for business written in excess of a deductible may be given significant weight in the most recent five accident years. The expected loss ratios used for recent accident years are based on the projected ultimate loss ratios for older years adjusted for rate changes, loss trend including inflation, and where appropriate, changing market conditions.

•Bornhuetter-Ferguson method: The Bornhuetter-Ferguson method using premiums and paid losses is a combination of the Paid Development method and the Expected Loss Ratio method where the weight given to each method is the reciprocal of the loss development factor. This method normally determines expected loss ratios similar to the method used for the Expected Loss Ratio method. The Bornhuetter-Ferguson method using premiums and incurred losses is similar to the Bornhuetter-Ferguson method using premiums and paid losses except that it uses case-incurred losses.

•Cape Cod method: The Cape Cod method is mechanically similar to the Bornhuetter-Ferguson method with the difference being that the Expected Loss Ratio estimates are determined based on a weighting of the loss estimates that come from the Paid/Incurred Development Methods. This method may be more responsive to recent loss trends than the Bornhuetter-Ferguson method.

•Average Loss method: The Average Loss method multiplies a projected number of ultimate claims by an estimated ultimate severity average loss for each accident year to produce ultimate loss estimates. Since projections of the ultimate number of claims are often less variable than projections of ultimate loss, this method can provide more reliable results for reserve categories where loss development patterns are inconsistent or too variable to be relied on exclusively.

In updating our loss reserve estimates, we consider and evaluate inputs from many sources, including actual claims data, the performance of prior reserve estimates, observed industry trends, our internal peer review processes, including challenges and recommendations from our Enterprise Risk Management group, as well as the views of third-party actuarial firms. We use these inputs to improve our evaluation techniques, and to analyze and assess the change in estimated ultimate loss for each accident year by product line. Our analyses produce a range of indications from various methods, from which we select our best estimate.

In determining the actual carried loss reserves, we consider both the internal actuarial best estimate and numerous other internal and external factors, including:

•an assessment of economic conditions, including real GDP growth, inflation, employment rates or unemployment duration, stock market volatility and changes in corporate bond spreads;

•changes in the legal, regulatory, judicial and social environment, including changes in road safety, public health and cleanup standards;

•changes in medical cost trends (inflation, intensity and utilization of medical services) and wage inflation trends;

•underlying policy pricing, terms and conditions including attachment points and policy limits;

•change in claims handling philosophy, operating model, processes, and related ongoing enhancements;

•third-party claims reviews that are periodically performed for key classes of claims such as toxic tort, environmental and other complex casualty claims;

•third-party actuarial reviews that are periodically performed for key classes of business;

•input from underwriters on pricing, terms, and conditions and market trends; and

•changes in our reinsurance program, pricing and commutations.

Where appropriate and identifiable, adjustments have been made to standard projection techniques. Changes in claims handling practices, such as differing referral and review criteria and other factors may also be expected to alter loss emergence.

The following factors are relevant to the loss development information included in the tables below:

•Table organization: The tables are organized by accident year and include policies written on an occurrence and claims- made basis. We note that for certain categories of claims (e.g., construction defect claims and environmental claims) and for reinsurance recoverable, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us. These reclassifications are shown as development in the respective years in the tables below. Financial Lines business is primarily written on a claims-made basis, while the majority of the workers’ compensation, excess casualty, other casualty, and run-off property and casualty lines of business are written on an occurrence basis. Primarily, all short-tail lines in Property and Special Risks and Personal Insurance are written on an occurrence basis.

•Groupings: We believe our groupings have homogenous risk characteristics with similar development patterns and would generally be subject to similar trends and reflect our reportable segments. The incurred losses and loss adjustment expenses and paid losses in the following tables for the current reporting year are allocated to the line of business and accident years based on how the business is coded by profit center and line of business.

•Reinsurance: Our reinsurance program varies by exposure type. Historically we have leveraged facultative and treaty reinsurance, both on a pro-rata and excess of loss basis. Our reinsurance program may change from year to year, which may affect the comparability of the data presented in our tables.

•Adverse development reinsurance agreement: For the lines of business covered by the agreement (U.S. Workers' Compensation, U.S. Excess Casualty, U.S. Other Casualty, U.S. Financial Lines, U.S. Property and Special Risks and U.S. Personal Insurance or collectively, the Covered Lines), an attribution of the loss recoveries to the line of business by calendar year and accident year is performed based on the underlying distribution of the losses subject to the agreement. Specifically, the future claim payments for all subject incurred losses were projected into future years based on the same actuarial assumptions underlying the related reserves. The additional table presented after discussion of prior year development by line of business reconciles the changes in net ultimates to our overall prior year development and provides the reattribution of loss recoveries for the Covered Lines. The reinsurance terms of the ADC were then used to identify the future claims payments for which 80% will be reimbursed by NICO. At each reporting period, the attribution of the ADC recoveries is performed. The factors that could cause the attribution to lines of business and accident year to change include changes in underlying actuarial assumptions as to timing and amount of future claim payments.

•Incurred but not reported liabilities (IBNR): We include development from past reported losses in IBNR.

•Data excluded from tables: Information with respect to accident years older than ten years is excluded from the development tables. Unallocated loss adjustment expenses are also excluded.

•Foreign exchange: The loss development for operations outside of the U.S. is presented for all accident years using the current exchange rate at December 31, 2025. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends.

•Acquisitions: We include acquisitions from all accident years presented in the tables. For purposes of this disclosure, we have applied the retrospective method for the acquired reserves, including incurred and paid claim development histories throughout the relevant tables. It should be noted that historical reserves for the acquired businesses were established by the acquired companies using methods, assumptions and procedures then in effect which may differ from our current reserving bases. Accordingly, it may not be appropriate to extrapolate future redundancies or deficiencies based on the aggregated historical results shown in the triangles.

•Dispositions: We exclude dispositions from all accident years presented in the tables.

•Claim counts: We consider a reported claim to be one claim for each claimant or feature for each loss occurrence. Claims relating to losses that are 100 percent reinsured are excluded from the reported claims in the tables below. Reported claims for losses from assumed reinsurance contracts are not available and hence not included in the reported claims.

There are limitations that should be considered on the reported claim count data in the tables below, including:

–Claim counts are presented only on a reported (not an ultimate) basis;

–The tables below include lines of business and geographies at a certain aggregated level which may indicate different frequency and severity trends and characteristics, and may not be as meaningful as the claim count information related to the individual products within those lines of business and geographies;

–Certain lines of business are more likely to be subject to occurrences involving multiple claimants and features, which can distort measures based on the reported claim counts in the table below; and

–Reported claim counts are not adjusted for ceded reinsurance, which may distort the measure of frequency or severity.

Supplemental Information: The information about incurred and paid loss development for all periods preceding the year ended December 31, 2025 and the related historical claims payout percentage disclosure is unaudited and is presented as supplementary information.

The following tables present undiscounted, incurred and paid losses and allocated loss adjustment expenses by accident year, on a net basis after reinsurance:

U.S. Workers' Compensation

U.S. Workers’ Compensation is an extremely long-tail line of business, with loss emergence extending for decades. Many of our workers’ compensation policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a traditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time. We group guaranteed cost and excess of deductible business separately and then further by state and industry subset to the extent that meaningful differences are determined to exist. We also separately analyze certain subsets of the portfolio that have unique characteristics (e.g., U.S. government sub-contractor accounts and construction wrap-up business). For excess of deductible business, we also segment by size of deductible and whether the claim is handled by AIG or an outside third-party administrator. The proportion of large deductible business has increased over time, which has slowed the reporting pattern of claims.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (in millions)																				December 31, 2025
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		Total of IBNR Liabilities Plus Expected Development on Reported Losses		Cumulative Number of Reported Claims
	Unaudited
2016	$	1,299	$	1,346	$	1,318	$	1,140	$	1,090	$	1,075	$	1,036	$	1,025	$	986	$	957	$	137	32,431
2017			789		850		776		763		731		712		705		673		664		158		28,371
2018					998		1,021		961		911		896		875		786		769		167		22,736
2019							887		873		812		801		788		730		684		141		17,596
2020									597		573		521		477		434		421		86		14,305
2021											597		570		545		514		533		197		11,490
2022													523		493		464		496		202		10,079
2023															500		465		476		222		9,332
2024																	567		540		280		7,683
2025																			535		484		5,476
Total																			$	6,075

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (in millions)
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
	Unaudited
2016	$	147	$	378	$	521	$	584	$	630	$	662	$	686	$	694	$	708	$	715
2017			93		224		294		333		367		389		395		402		407
2018					85		215		296		359		388		409		448		459
2019							93		219		301		347		389		417		431
2020									64		159		205		245		259		279
2021											60		128		171		211		241
2022													45		102		143		189
2023															38		103		144
2024																	35		104
2025																			35
Total																			$	3,004

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	374
Accident Years 2016-2025 from tables above	3,071
All Accident Years	$	3,445

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	10
Accident Years 2016-2025 from tables above	(79)
All Accident Years	(69)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	(44)
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	$	(113)

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
U.S. Workers' Compensation	11.0	%	17.0	%	10.5	%	7.7	%	4.8	%	3.6	%	2.6	%	1.1	%	1.1	%	0.8	%

U.S. Excess Casualty

U.S. Excess Casualty policies tend to attach at a high layer above underlying policies, which causes the loss development pattern to lag significantly. Many of the claims notified to the excess layers are closed without payment because the claims never reach our layer as a result of high deductibles and other underlying coverages, while the claims that reach our layer can have large case reserves or settlements and be highly variable in terms of reported timing and amount. For a portion of this business, the underlying primary policies are issued by other insurance companies, which can limit our access to relevant information to help inform our judgments as the loss events evolve and mature. Furthermore, this coverage is often significantly impacted by the underwriting cycle and external judicial trends.

Recent accident years reflect a strategy towards having higher attachment points on the portfolio through changing participations in various layers within an insured’s program.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (in millions)																				December 31, 2025
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		Total of IBNR Liabilities Plus Expected Development on Reported Losses		Cumulative Number of Reported Claims
	Unaudited
2016	$	898	$	1,146	$	1,162	$	1,171	$	1,274	$	1,250	$	1,263	$	1,276	$	1,317	$	1,305	$	226	3,064
2017			856		1,002		1,097		1,153		1,157		1,200		1,182		1,228		1,270		257		2,358
2018					648		646		721		769		769		779		779		762		110		1,764
2019							577		583		597		612		600		604		584		225		1,588
2020									406		413		410		420		404		395		166		1,570
2021											278		277		274		358		383		113		1,196
2022													305		305		333		369		104		824
2023															345		348		373		179		740
2024																	315		315		214		446
2025																			459		451		185
Total																			$	6,215

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (in millions)
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
	Unaudited
2016	$	28	$	80	$	204	$	388	$	502	$	566	$	670	$	798	$	851	$	986
2017			1		45		156		505		585		676		781		860		898
2018					1		125		227		315		414		494		527		579
2019							7		43		79		157		216		253		282
2020									4		15		33		128		188		209
2021											4		43		62		161		207
2022													14		51		96		177
2023															1		89		115
2024																	—		59
2025																			5
Total																			$	3,517

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	455
Accident Years 2016-2025 from tables above	2,698
All Accident Years	$	3,153

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	(2)
Accident Years 2016-2025 from tables above	70
All Accident Years	68
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	14
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	$	82

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
U.S. Excess Casualty	1.1	%	10.6	%	8.3	%	19.7	%	10.9	%	6.9	%	6.4	%	7.6	%	3.5	%	10.4	%

U.S. Other Casualty

U.S. Other Casualty includes general liability, automobile liability, environmental, medical malpractice, and other casualty lines of business. These lines of business are all long-tail in nature and while somewhat diverse in terms of exposures, these lines are often subject to similar trends. These lines are often significantly impacted by the underwriting cycle and external judicial trends. Many of our policies contain risk-sharing features, including high deductibles, self-insured retentions or retrospective rating features, in addition to a traditional insurance component. These risk-sharing programs generally are large and complex, comprising multiple products, years and structures, and are subject to amendment over time.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (in millions)																				December 31, 2025
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		Total of IBNR Liabilities Plus Expected Development on Reported Losses		Cumulative Number of Reported Claims
	Unaudited
2016	$	1,339	$	1,343	$	1,321	$	1,391	$	1,340	$	1,323	$	1,293	$	1,297	$	1,264	$	1,241	$	35	29,467
2017			602		629		738		674		668		643		654		662		654		21		21,436
2018					802		845		837		870		824		810		841		852		115		17,192
2019							1,059		1,058		1,053		1,062		1,039		1,024		1,009		432		21,479
2020									524		576		538		540		519		499		166		11,792
2021											795		793		790		818		845		461		11,552
2022													793		819		827		861		495		14,193
2023															933		955		983		698		14,983
2024																	840		871		709		11,999
2025																			876		734		7,487
Total																			$	8,691

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (in millions)
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
	Unaudited
2016	$	77	$	298	$	489	$	703	$	846	$	938	$	1,018	$	1,074	$	1,144	$	1,173
2017			51		111		216		314		455		527		592		613		615
2018					43		122		227		360		470		565		636		685
2019							53		138		226		321		410		474		510
2020									26		73		139		198		252		301
2021											32		87		169		265		351
2022													38		112		195		299
2023															36		102		205
2024																	37		128
2025																			62
Total																			$	4,329

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	289
Accident Years 2016-2025 from tables above	4,362
All Accident Years	$	4,651

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	(62)
Accident Years 2016-2025 from tables above	65
All Accident Years	3
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	19
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	$	22

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
U.S. Other Casualty	5.3	%	9.6	%	11.9	%	13.2	%	12.6	%	9.2	%	7.1	%	4.5	%	2.9	%	2.3	%

U.S. Financial Lines

U.S. Financial Lines business includes D&O, Errors and Omissions (E&O), Employment Practices Liability Insurance policies and various professional liability subsets of business, as well as the fidelity book of business. This includes cyber coverage and mergers and acquisitions coverage, which have been a growing and evolving portion of this portfolio. These product lines are predominantly claims-made in nature, losses are characterized by low frequency and high severity, and results are often significantly impacted by external economic conditions.

Our analysis is segmented by major coverages, such as D&O, E&O, etc. and then further segmented by major industry groups (e.g. corporate accounts, national accounts, financial institutions, private/not-for-profit, etc.). We also separately review primary business from excess business for certain product lines.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (in millions)																				December 31, 2025
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		Total of IBNR Liabilities Plus Expected Development on Reported Losses		Cumulative Number of Reported Claims
	Unaudited
2016	$	1,605	$	1,855	$	1,993	$	2,064	$	2,139	$	2,281	$	2,325	$	2,308	$	2,322	$	2,345	$	95	16,143
2017			1,564		1,675		1,756		1,846		1,898		1,987		1,957		1,969		1,966		108		15,293
2018					1,640		1,766		1,882		2,063		2,225		2,322		2,282		2,260		291		14,867
2019							1,503		1,536		1,627		1,926		1,912		1,945		1,961		266		13,406
2020									1,213		1,252		1,408		1,457		1,470		1,480		162		10,495
2021											1,430		1,408		1,388		1,316		1,244		514		7,280
2022													1,130		1,108		1,105		1,057		695		5,985
2023															1,043		1,041		1,075		574		7,100
2024																	942		955		636		7,791
2025																			999		927		8,079
Total																			$	15,342

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (in millions)
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
	Unaudited
2016	$	73	$	499	$	1,002	$	1,358	$	1,659	$	1,826	$	1,903	$	2,039	$	2,115	$	2,169
2017			64		391		761		1,118		1,396		1,515		1,653		1,777		1,805
2018					86		486		835		1,126		1,415		1,601		1,776		1,879
2019							94		367		642		953		1,204		1,423		1,575
2020									84		356		648		915		1,063		1,171
2021											43		151		315		468		628
2022													30		109		177		293
2023															46		150		324
2024																	44		216
2025																			40
Total																			$	10,100

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	28
Accident Years 2016-2025 from tables above	5,242
All Accident Years	$	5,270

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	20
Accident Years 2016-2025 from tables above	(49)
All Accident Years	(29)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	(16)
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	$	(45)

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
U.S. Financial Lines	4.0	%	14.3	%	15.7	%	14.8	%	12.5	%	8.0	%	6.5	%	5.5	%	2.3	%	2.3	%

U.S. Property and Special Risks

U.S. Property products include commercial, industrial and energy-related property insurance products and services that cover exposures to manmade and natural disasters, including business interruption. U.S. Special Risk products include aerospace, environmental, political risk, trade credit, surety and marine insurance, and program business for various small and medium sized enterprises insurance lines. The program segments include both property and casualty exposures. Recent years have seen an increasing proportion of non-admitted coverages which has altered the underlying customer profile to be less severe in the aggregate.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (in millions)																				December 31, 2025
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		Total of IBNR Liabilities Plus Expected Development on Reported Losses		Cumulative Number of Reported Claims
	Unaudited
2016	$	2,674	$	2,748	$	2,690	$	2,697	$	2,707	$	2,694	$	2,700	$	2,713	$	2,727	$	2,731	$	6	54,963
2017			4,569		4,239		4,127		4,153		4,173		4,212		4,175		4,187		4,178		6		79,982
2018					2,978		2,993		2,992		3,229		3,201		3,210		3,204		3,203		10		70,274
2019							2,177		2,146		2,211		2,222		2,177		2,198		2,215		24		79,150
2020									3,391		3,320		3,280		3,238		3,269		3,289		464		69,329
2021											2,339		2,213		2,160		2,190		2,180		92		82,535
2022													3,171		3,281		3,240		3,234		249		87,066
2023															2,528		2,440		2,367		326		100,257
2024																	1,844		1,714		426		31,463
2025																			2,097		739		22,479
Total																			$	27,208

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (in millions)
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
	Unaudited
2016	$	821	$	1,747	$	2,076	$	2,296	$	2,464	$	2,539	$	2,616	$	2,647	$	2,679	$	2,688
2017			1,137		2,625		3,281		3,638		3,897		3,999		4,055		4,129		4,151
2018					977		2,162		2,509		2,715		2,863		2,994		3,094		3,144
2019							1,039		1,673		1,906		2,037		2,083		2,124		2,176
2020									844		1,613		1,874		2,190		2,414		2,657
2021											878		1,743		1,983		2,004		2,061
2022													1,208		2,207		2,437		2,769
2023															1,173		1,692		1,878
2024																	667		1,012
2025																			784
Total																			$	23,320

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	254
Accident Years 2016-2025 from tables above	3,888
All Accident Years	$	4,142

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	34
Accident Years 2016-2025 from tables above	(188)
All Accident Years	(154)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	4
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	$	(150)

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
U.S. Property and Special Risks	36.4	%	30.1	%	10.4	%	7.1	%	4.7	%	3.7	%	2.4	%	1.5	%	0.9	%	0.3	%

U.S. Personal Insurance

U.S. Personal Insurance consists of accident and health and personal lines. Accident and health products include voluntary and sponsor-paid personal accident and supplemental health products for individuals, employees, associations and other organizations as well as a broad range of travel insurance products and services for leisure and business travelers. Personal lines include automobile and homeowners’ insurance, extended warranty, and consumer specialty products, such as identity theft and credit card protection. Personal lines also provides insurance for high net worth individuals, including auto, homeowners, umbrella, yacht, fine art and collections insurance. Personal lines are generally short-tail in nature and can reflect significant salvage and subrogation recoveries.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (in millions)																				December 31, 2025
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		Total of IBNR Liabilities Plus Expected Development on Reported Losses		Cumulative Number of Reported Claims
	Unaudited
2016	$	1,536	$	1,533	$	1,533	$	1,540	$	1,542	$	1,544	$	1,544	$	1,541	$	1,541	$	1,540	$	16	247,862
2017			1,878		2,137		2,011		2,057		1,924		1,916		1,896		1,899		1,898		12		220,439
2018					2,188		2,193		2,154		1,937		1,936		1,920		1,927		1,924		24		102,585
2019							1,593		1,664		1,646		1,596		1,578		1,569		1,565		45		94,184
2020									954		906		913		894		890		888		37		56,199
2021											748		765		762		752		747		53		57,895
2022													517		529		525		523		51		56,476
2023															677		668		688		53		50,195
2024																	604		594		67		41,541
2025																			429		216		23,548
Total																			$	10,796

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (in millions)
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
	Unaudited
2016	$	857	$	1,344	$	1,422	$	1,460	$	1,501	$	1,512	$	1,518	$	1,521	$	1,521	$	1,522
2017			941		1,672		1,896		1,789		1,826		1,852		1,861		1,878		1,884
2018					1,227		1,939		1,973		1,789		1,832		1,849		1,881		1,900
2019							884		1,295		1,379		1,416		1,491		1,516		1,517
2020									667		679		725		824		846		850
2021											488		650		658		662		676
2022													372		401		406		464
2023															400		522		579
2024																	273		516
2025																			142
Total																			$	10,050

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	(41)
Accident Years 2016-2025 from tables above	746
All Accident Years	$	705

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance including ADC

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	(1)
Accident Years 2016-2025 from tables above	(8)
All Accident Years	(9)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	(2)
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance including ADC, All Accident Years	$	(11)

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
U.S. Personal Insurance	57.4	%	24.5	%	4.9	%	1.8	%	2.6	%	1.0	%	0.7	%	0.7	%	0.2	%	0.1	%

UK/Europe Casualty and Financial Lines

UK/Europe is our largest non-U.S. region for Liability and Financial Lines. UK/Europe Casualty and Financial Lines is composed of third-party coverages including general liability, auto liability, D&O, professional liability and various other coverages throughout both the UK and Continental Europe. These areas are all long-tail in nature and while somewhat diverse in terms of exposures, these lines are often subject to similar trends. These lines are impacted by the underwriting cycle and external judicial trends. The largest share of business is in the UK, but significant business is also written in other European countries such as Germany, France, and Italy.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (in millions)																				December 31, 2025
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		Total of IBNR Liabilities Plus Expected Development on Reported Losses		Cumulative Number of Reported Claims
	Unaudited
2016	$	1,392	$	1,482	$	1,561	$	1,566	$	1,685	$	1,674	$	1,686	$	1,687	$	1,766	$	1,819	$	194	142,980
2017			1,423		1,349		1,310		1,418		1,449		1,434		1,473		1,520		1,533		162		150,034
2018					1,413		1,465		1,569		1,600		1,696		1,742		1,831		1,849		263		151,989
2019							1,297		1,554		1,404		1,420		1,407		1,417		1,480		243		143,228
2020									1,319		1,338		1,278		1,266		1,215		1,180		252		86,594
2021											1,443		1,404		1,398		1,357		1,304		458		78,019
2022													1,370		1,320		1,279		1,293		621		75,486
2023															1,361		1,337		1,364		741		71,761
2024																	1,389		1,428		919		73,433
2025																			1,350		1,132		61,557
Total																			$	14,600

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (in millions)
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
	Unaudited
2016	$	125	$	399	$	616	$	812	$	975	$	1,108	$	1,221	$	1,316	$	1,359	$	1,418
2017			102		295		471		631		789		938		1,007		1,115		1,180
2018					120		392		599		778		944		1,179		1,275		1,365
2019							103		325		504		691		797		920		1,023
2020									63		239		385		533		630		720
2021											54		244		361		474		610
2022													60		195		310		404
2023															38		200		335
2024																	63		222
2025																			62
Total																			$	7,339

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	1,027
Accident Years 2016- from tables above	7,261
All Accident Years	$	8,288

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	7
Accident Years 2016- from tables above	139
All Accident Years	146
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years	70
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years	$	216

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
UK/Europe Casualty and Financial Lines	5.3	%	13.4	%	10.9	%	10.3	%	9.0	%	9.1	%	5.7	%	5.7	%	3.3	%	3.2	%

UK/Europe Property and Special Risks

UK/Europe Property products include commercial, industrial and energy-related property insurance products and services that cover exposures to manmade and natural disasters, including business interruption. UK/Europe Special Risk products include aerospace, environmental, political risk, trade credit, surety and marine insurance, and various small and medium sized enterprises insurance lines.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (in millions)																				December 31, 2025
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		Total of IBNR Liabilities Plus Expected Development on Reported Losses		Cumulative Number of Reported Claims
	Unaudited
2016	$	1,645	$	1,740	$	1,762	$	1,737	$	1,733	$	1,727	$	1,663	$	1,659	$	1,651	$	1,629	$	17	57,394
2017			1,671		1,674		1,648		1,654		1,639		1,605		1,603		1,604		1,601		(2)		53,611
2018					1,678		1,605		1,580		1,567		1,514		1,514		1,500		1,491		7		44,446
2019							1,172		1,133		1,132		1,122		1,126		1,130		1,112		54		34,054
2020									1,324		1,264		1,224		1,247		1,242		1,224		(2)		26,576
2021											1,048		1,011		962		987		972		69		23,384
2022													1,150		1,308		1,282		1,288		272		25,559
2023															1,090		1,086		1,060		135		24,666
2024																	1,177		1,260		189		24,338
2025																			1,334		585		17,987
Total																			$	12,971

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (in millions)
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
	Unaudited
2016	$	472	$	1,154	$	1,412	$	1,550	$	1,596	$	1,625	$	1,643	$	1,618	$	1,621	$	1,616
2017			363		968		1,255		1,399		1,458		1,497		1,512		1,518		1,529
2018					326		1,008		1,199		1,331		1,347		1,382		1,407		1,424
2019							273		672		846		935		981		1,013		1,007
2020									254		683		836		934		1,048		1,131
2021											194		519		711		779		809
2022													198		684		1,145		1,866
2023															161		537		744
2024																	206		554
2025																			205
Total																			$	10,885

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	90
Accident Years 2016- from tables above	2,086
All Accident Years	$	2,176

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	(9)
Accident Years 2016- from tables above	(22)
All Accident Years	(31)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years	17
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years	$	(14)

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
UK/Europe Property and Special Risks	20.1	%	36.7	%	18.7	%	15.0	%	4.0	%	3.2	%	0.8	%	—	%	0.4	%	(0.3	%)

UK/Europe and Japan Personal Insurance

UK/Europe and Japan Personal Insurance lines consist of accident and health and personal lines. Accident and health products include voluntary and sponsor-paid personal accident and supplemental health products for individuals, employees, associations and other organizations as well as a broad range of travel insurance products and services for leisure and business travelers. Personal lines include automobile and homeowners’ insurance, extended warranty, and consumer specialty products, such as identity theft and credit card protection. Personal lines are generally short-tail in nature.

Incurred Losses and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

	Years Ended December 31, (in millions)																				December 31, 2025
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025		Total of IBNR Liabilities Plus Expected Development on Reported Losses		Cumulative Number of Reported Claims
	Unaudited
2016	$	2,146	$	2,140	$	2,147	$	2,143	$	2,140	$	2,137	$	2,130	$	2,131	$	2,127	$	2,128	$	2	1,794,526
2017			2,064		2,041		2,027		2,022		2,039		2,022		2,032		2,028		2,032		5		1,719,905
2018					2,423		2,329		2,323		2,295		2,317		2,317		2,306		2,305		(1)		1,918,168
2019							1,981		1,936		1,899		1,888		1,879		1,885		1,884		2		1,677,776
2020									1,815		1,683		1,627		1,613		1,603		1,603		2		1,394,864
2021											1,687		1,638		1,613		1,611		1,612		11		1,396,679
2022													1,788		1,809		1,747		1,742		19		2,079,335
2023															1,607		1,578		1,566		36		1,456,046
2024																	1,514		1,511		41		1,422,120
2025																			1,445		217		1,221,216
Total																			$	17,828

Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

	Years Ended December 31, (in millions)
Accident Year	2016		2017		2018		2019		2020		2021		2022		2023		2024		2025
	Unaudited
2016	$	1,175	$	1,760	$	1,935	$	2,021	$	2,066	$	2,091	$	2,106	$	2,111	$	2,116	$	2,117
2017			1,153		1,718		1,871		1,939		1,974		1,995		1,993		2,003		2,010
2018					1,448		1,946		2,099		2,178		2,219		2,267		2,286		2,293
2019							1,156		1,628		1,746		1,806		1,828		1,849		1,864
2020									969		1,396		1,496		1,533		1,560		1,576
2021											952		1,352		1,457		1,518		1,543
2022													1,038		1,485		1,600		1,654
2023															906		1,329		1,437
2024																	872		1,278
2025																			860
Total																			$	16,632

Liabilities for Loss and Allocated Loss Adjustment Expenses, Undiscounted and Net of Reinsurance

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	44
Accident Years 2016- from tables above	1,196
All Accident Years	$	1,240

(Favorable) Adverse Prior Year Development for Loss and Allocated Loss Adjustment Expenses,

Undiscounted and Net of Reinsurance

(in millions)	Year Ended December 31, 2025
Accident Years prior to 2016	$	—
Accident Years 2016- from tables above	(16)
All Accident Years	(16)
Prior Year Development for Unallocated Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years	53
Prior Year Development for Loss and Loss Adjustment Expense, Undiscounted and Net of Reinsurance, All Accident Years	$	37

Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Year	1		2		3		4		5		6		7		8		9		10
UK/Europe and Japan Personal Insurance	59.0	%	25.9	%	6.9	%	3.3	%	1.7	%	1.3	%	0.6	%	0.3	%	0.3	%	—	%

DISCOUNTING OF LOSS RESERVES

At December 31, 2025 and 2024, the loss reserves reflect a net loss reserve discount of $1.2 billion and $1.2 billion, respectively, including tabular and non-tabular calculations based upon the following assumptions:

•The non-tabular workers’ compensation discount is calculated separately for companies domiciled in New York, Pennsylvania and Delaware, and follows the statutory regulations (prescribed or historically permitted) for each state.

–For New York companies, the discount is based on a 5 percent interest rate and the companies’ own payout patterns.

–The Pennsylvania and Delaware regulators have approved use of a consistent benchmark discount rate and spread (U.S. Treasury rate plus a liquidity premium), subject to a 4.5 percent maximum as stipulated by Delaware, to all of our workers’ compensation reserves in our Pennsylvania domiciled and Delaware domiciled companies, as well as our use of updated payout patterns specific to our primary and excess workers compensation portfolios. In 2020, the regulators also approved that the discount rate will be updated on an annual basis, which was 4.5 percent at December 31, 2025 and 2024.

•The tabular workers’ compensation discount is calculated based on the mortality rate used in the 2007 U.S. Life table and interest rates prescribed or permitted by each state (i.e. New York is based on 5 percent interest rate and Pennsylvania and Delaware are based on U.S. Treasury rate plus a liquidity premium). In the case that applying this tabular discount factor to our nominal reserves produces a tabular discount that is greater than the indemnity portion of our case reserves, the tabular discount is capped at our estimate of the indemnity portion of our case reserves (45 percent).

The discount for asbestos reserves has been fully accreted.

At December 31, 2025 and 2024, the discount consists of $141 million and $107 million of tabular discount, respectively, and $1.0 billion and $1.1 billion of non-tabular discount for workers’ compensation, respectively. During the years ended December 31, 2025, 2024 and 2023, the benefit / (charge) from changes in discount of $(48) million, $(226) million and $(195) million, respectively, were recorded as part of Losses and loss adjustment expenses incurred in the Consolidated Statements of Income (Loss).

The following table presents the components of the loss reserve discount discussed above:

(in millions)		December 31, 2025		December 31, 2024
U.S. workers' compensation	$	2,063	$	2,111
Retroactive reinsurance		(891)		(936)
Total reserve discount(a)(b)	$	1,172	$	1,175

(a)Excludes $166 million and $184 million of discount related to certain long-tail liabilities in the UK at December 31, 2025 and 2024, respectively.

(b)Includes gross discount of $693 million and $627 million, which was 100 percent ceded to Fortitude Re at December 31, 2025 and 2024, respectively.

The following table presents the net loss reserve discount benefit (charge):

	Years Ended December 31,
(in millions)		2025		2024		2023
Current accident year	$	120	$	128	$	112
Accretion and other adjustments to prior year discount		(168)		(303)		(264)
Effect of interest rate changes		—		(51)		(43)
Net reserve discount benefit (charge)		(48)		(226)		(195)
Change in discount on loss reserves ceded under retroactive reinsurance		45		168		150
Net change in total reserve discount*	$	(3)	$	(58)	$	(45)

*Excludes $(18) million, $(12) million and $61 million of discount related to certain long-tail liabilities in the UK for the years ended December 31, 2025, 2024 and 2023, respectively.

During 2025, net change in total reserve discount was impacted by updates to future payouts. There was no change in discount rate during the year due to a statutory cap.

During 2024, net change in total reserve discount was impacted by updates to future payouts, and despite increases in U.S. Treasury rates, the updated discount rate resulted in a decrease in the total reserve discount due to the implementation of a statutory cap.

During 2023, net change in total reserve discount was impacted by updates to future payouts, along with a decrease in the discount rate due to an increase in U.S. Treasury rates being offset by a decrease in the discount spread.

Amortization of Deferred Gain on Retroactive Reinsurance

Amortization of the deferred gain on retroactive reinsurance includes $158 million, $322 million and $48 million related to the adverse development reinsurance cover with NICO for the years ended December 31, 2025, 2024 and 2023, respectively.

Amounts recognized reflect the amortization of the initial deferred gain at inception, as amended for subsequent changes in the deferred gain due to changes in subject reserves.

FUTURE POLICY BENEFITS

Future policy benefits primarily include reserves for certain long-duration contracts that are 100 percent ceded of $797 million and $691 million at December 31, 2025 and 2024, respectively, certain other long-duration contracts of $583 million and $621 million at December 31, 2025 and 2024, respectively, and Global Accident & Health contracts.