Risk factors

The company removed pandemic risk, updated share and stock option figures for December 31, 2025, and reframed interest rate risk on held-to-maturity securities.

The PSKY Merger dominates new disclosure, creating completion, failure, operating uncertainty, employee and reputational risks.

Backlog cancellation and scope changes are newly emphasized as threats to future revenue and profitability.

Insurance pricing is moderating while social inflation drives up loss costs. Fixed maturity securities grew to 25.0 billion dollars.

Supplier concentration remains high with Carrier and Rheem accounting for 70% of purchases in 2025. Rheem supply details were expanded to include Friedrich and AireVantage products.

Valuation volatility of BAM Surplus Notes created a new specific risk factor. Book value exposure shifted through changes in asset valuations like MediaAlpha. Reinsurance and tax compliance risks were updated to reflect current operational structures.

HPC campus construction, lease commencement, customer protections and joint-venture control now dominate execution risk.

Wolverine World Wide added specific trade policy and tariff risks regarding its Asia Pacific manufacturing base.

China acquisition adds PRC regulatory, currency, ownership-transfer, and government-intervention risks.

Yarrow is merging with VYNE, resulting in massive dilution where pre-merger VYNE holders retain only 3 percent ownership.

Yelp is investing in answers, AI tools, and local delivery, but expects expenses may outpace resulting revenue growth.

Tariff and trade policy risks expand to cover customs withhold release orders and supply chain restrictions. Direct-to-consumer and retail store expansion risks are added as separate operational threats. Product innovation risks highlight that durable products lack a natural replacement cycle.