Berkley W R (WRB) risk factors, FY2025 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 industry25% rewritten
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 business31% rewritten
4. 04and conditions acceptable to us. If we are unable to retain existing business or write new business at adequate rates or on terms and conditions acceptable to us, our results of operations could be materially and adversely affectedNew
5. 05Our gross reserves for losses and loss expenses were approximately $22.2 billion as of December 31, 2025. Our loss reserves reflect our best estimates of the cost of settling claims and related expenses with respect to insured events that have occurred
6. 06The effects of emerging claim and coverage issues on our business are uncertain
7. 07In 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
8. 08As a property casualty insurer, we face losses from natural and man-made catastrophes
9. 09New 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
10. 10Changing climate conditions may alter the frequency and increase the severity of catastrophic events and thereby adversely affect our financial condition and results of operations
11. 11We, as a primary insurer, may have significant exposure to terrorist acts22% rewritten
12. 12We are exposed to, and may face adverse developments involving, mass tort claims
13. 13We are subject to extensive governmental regulation, which increases our costs and could restrict the conduct of our business
14. 14Federal 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 years31% rewritten
15. 15regulatory regimes of the jurisdictions outside the EU in which we have insurance or reinsurance companies domiciled to be “equivalent” to Solvency IINew
16. 16If 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 commitments56% rewritten

Risks Relating to Our Business

1. 17Our expanding international operations expose us to increased investment, political, legal/regulatory, and economic risks, including foreign currency and credit risk
2. 18We may be unable to attract and retain key personnel and qualified employees
3. 19We cannot guarantee that our reinsurers will pay in a timely fashion, if at all, and, as a result, we could experience losses68% rewritten
4. 20We are subject to credit risk relating to our policyholders, independent agents and brokers
5. 21Our employees could take excessive risks, which could negatively affect our financial condition and businessNew
6. 22We 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
7. 23Depending on conditions in the financial markets and the general economy, we may be unable to raise debt or equity capital if needed
8. 24We 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. 25If 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. 26Failure to maintain the security of information technology systems and confidential data may expose us to liability
11. 27Our increasing investment in and use of artificial intelligence technologies or their use by third-parties on which we rely could expose us to technological, security, legal, and other risks48% rewritten
12. 28We could be adversely affected if our controls to ensure compliance with guidelines, policies and legal and regulatory standards are not effective
13. 29Limitations in risk management and loss limitation methods may adversely impact our business
14. 30Scrutiny 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. 31A significant amount of our assets is invested in fixed maturity securities and is subject to market fluctuations55% rewritten
2. 32We 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 value26% rewritten

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

1. 33We are an insurance holding company and, therefore, may not be able to receive dividends in needed amounts
2. 34Laws 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 stock49% rewritten
3. 35extraordinary transaction, other than one expected to result in a business combination that would give rise to a significant, direct and irresolvable conflict of interest for MSINew