Berkley W R (WRB) risk factors, FY2024 10-K

Risks Relating to Our Industry

1. 01Our results may fluctuate as a result of many factors, including cyclical changes in the insurance and reinsurance industry
2. 02The results of companies in the property casualty insurance industry historically have been subject to significant fluctuations and uncertainties in supply and demand and pricing, causing cyclical changes in the insurance and reinsurance industry
3. 03We face significant competitive pressures in our businesses, which can pressure premium rates in certain areas and could harm our ability to maintain or increase our profitability and premium volume in some parts of our business
4. 04Our gross reserves for losses and loss expenses were approximately $20.4 billion as of December 31, 2024. Our loss reserves reflect our best estimates of the cost of settling claims and related expenses with respect to insured events that have occurred
5. 05The effects of emerging claim and coverage issues on our business are uncertain
6. 06In some instances, these emerging issues may not become apparent for some time after we have issued the affected insurance policies. As a result, the full extent of liability under our insurance policies may not be known until many years after the policies are issued
7. 07As a property casualty insurer, we face losses from natural and man-made catastrophes
8. 08New or emerging pandemics, whether related to COVID-19 or otherwise, may materially and adversely affect our results of operations, financial position and liquidity in the future
9. 09Changing climate conditions may alter the frequency and increase the severity of catastrophic events and thereby adversely affect our financial condition and results
10. 10We, as a primary insurer, may have significant exposure for terrorist acts
11. 11We are exposed to, and may face adverse developments involving, mass tort claims
12. 12We are subject to extensive governmental regulation, which increases our costs and could restrict the conduct of our business
13. 13Federal financial services modernization legislation and legislative and regulatory initiatives taken or which may be taken in response to conditions in the financial markets, global insurance supervision and other factors may lead to additional federal regulation of the insurance industry in the coming years
14. 14We may be unable to maintain all required licenses and approvals and our business may not fully comply with the

Risks Relating to Our Business

1. 15Our expanding international operations expose us to increased investment, political, legal/regulatory, and economic risks, including foreign currency and credit risk
2. 16We may be unable to attract and retain key personnel and qualified employees
3. 17We cannot guarantee that our reinsurers will pay in a timely fashion, if at all, and, as a result, we could experience losses
4. 18We are subject to credit risk relating to our policyholders, independent agents and brokers
5. 19We are rated by A.M. Best, Standard & Poor's, Moody's, and Fitch, and a decline in these ratings could affect our standing in the insurance industry and cause our sales and earnings to decrease
6. 20If market conditions cause reinsurance to be more costly or unavailable, we may be required to bear increased risks or reduce the level of our underwriting commitments
7. 21Depending on conditions in the financial markets and the general economy, we may be unable to raise debt or equity capital if needed
8. 22We may not find suitable new insurance ventures and acquisition candidates and even if we do, we may not successfully invest in such ventures or successfully integrate any such acquired companies
9. 23If our information technology, telecommunications or other computer systems become unavailable or unreliable, our ability to conduct our business could be negatively or severely impacted
10. 24Failure to maintain the security of information technology systems and confidential data may expose us to liability
11. 25Use of artificial intelligence technologies by us or third-parties on which we rely could expose us to technological, security, legal, and other risks
12. 26We could be adversely affected if our controls to ensure compliance with guidelines, policies and legal and regulatory standards are not effective
13. 27Limitations in risk management and loss limitation methods may adversely impact our business
14. 28Scrutiny of our social responsibility and the efforts we take to implement related measures, or the failure to take such measures, may adversely impact our business

Risks Relating to Our Investments

1. 29A significant amount of our assets is invested in fixed maturity securities and is subject to market fluctuations
2. 30due to the then current financial environment. In such cases, the valuation of a greater number of our securities may require additional subjectivity and management judgment
3. 31We have invested a portion of our assets in equity securities, merger arbitrage securities, investment funds, private equity, loans and real estate related assets, which are subject to significant volatility and may decline in value

Risks Relating to Limitations on Dividends from Subsidiaries and Anti-Takeover Provisions

1. 32We are an insurance holding company and, therefore, may not be able to receive dividends in needed amounts
2. 33Laws and regulations of the jurisdictions in which we conduct business could delay, deter or prevent an attempt to acquire control of us that stockholders might consider to be desirable, and may restrict a stockholder's ability to purchase our common stock
3. 34Certain provisions in our organizational documents may have the effect of hindering, delaying or preventing third party takeovers and thus may prevent our stockholders from receiving premium prices for their shares in an unsolicited takeover or make it more difficult for third parties to replace our current management