USL Separate Account USL A

National Union Fire Insurance Company of Pittsburgh, Pa.

An AIG Company

NAIC Code: 19445

Statutory Basis Financial Statements

As of December 31, 2025 and 2024

and for the years ended December 31, 2025, 2024 and 2023

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements

As of December 31, 2025 and 2024 and for the years ended December 31, 2025, 2024 and 2023

Table of Contents


	Report of Independent Auditors	3
	Statements of Admitted Assets	5
	Statements of Liabilities, Capital and Surplus	6
	Statements of Operations and Changes in Capital and Surplus	7
	Statements of Cash Flows	8
Note 1	Organization and Summary of Significant Statutory Basis Accounting Policies	9
Note 2	Accounting Adjustments to Statutory Basis Financial Statements	22
Note 3	Investments	24
Note 4	Fair Value of Financial Instruments	30
Note 5	Reserves for Losses and Loss Adjustment Expenses	32
Note 6	Related Party Transactions	35
Note 7	Reinsurance	37
Note 8	Income Taxes	40
Note 9	Capital and Surplus and Dividend Restrictions	45
Note 10	Contingencies	46
Note 11	Other Significant Matters	48
Note 12	Subsequent Events	50

Report of Independent Auditors

To the Board of Directors of National Union Fire Insurance Company of Pittsburgh, Pa.:

Opinions

We have audited the accompanying statutory basis financial statements of National Union Fire Insurance Company of Pittsburgh, Pa. (the “Company”), which comprise the statutory basis statements of admitted assets and of liabilities, capital and surplus as of December 31, 2025 and 2024, and the related statutory basis statements of operations and changes in capital and surplus, and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the “financial statements”).

Unmodified Opinion on Statutory Basis of Accounting

In our opinion, the accompanying financial statements present fairly, in all material respects, the admitted assets, liabilities, and capital and surplus of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in accordance with the accounting practices prescribed or permitted by the Insurance Department of the Commonwealth of Pennsylvania described in Note 1.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the accompanying financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company as of December 31, 2025 and 2024, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2025.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 1 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the Insurance Department of the Commonwealth of Pennsylvania, which is a basis of accounting other than accounting principles generally accepted in the United States of America.

The effects on the financial statements of the variances between the statutory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.

Emphasis of Matter

As discussed in Notes 1, 6 and 7 to the financial statements, the Company has entered into significant transactions with certain affiliated entities. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Insurance Department of the Commonwealth of Pennsylvania. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date the financial statements are available to be issued.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with US GAAS, we:

a.Exercise professional judgment and maintain professional skepticism throughout the audit.

b.Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

c.Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

d.Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

e.Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

/s/ PricewaterhouseCoopers LLP

New York, New York

April 22, 2026

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)


	Statements of Admitted Assets


		December 31, 2025			December 31, 2024

Cash and invested assets:
	Bonds, primarily at amortized cost (fair value: 2025 - $12,818; 2024 - $11,408)		$	12,833		$	11,832
	Common stocks, at carrying value (cost:2025 - $151; 2024 - $178)		151			178
	Preferred stocks, primarily at fair value (cost: 2025 - $0; 2024 - $5)		1			1
	Other invested assets (cost:2025 - $965; 2024 - $1,400)		1,228			1,541
	Mortgage loans		1,538			1,969

	Derivative instruments		2			64
	Short-term investments, at amortized cost (approximates fair value)		—			3
	Cash and cash equivalents		1,095			1,516
	Receivable for securities sold		26			16
	Total cash and invested assets		$	16,874		$	17,120

	Investment income due and accrued		$	120		$	123
	Agents' balances or uncollected premiums:
	Premiums in course of collection		968			973
	Premiums and installments booked but deferred and not yet due		347			274
	Accrued retrospective premiums		176			207
	High deductible recoverable on paid losses		5			11
	Reinsurance recoverable on paid losses		769			737
	Funds held by or deposited with reinsurers		115			150

	Net deferred tax assets		221			215
	Receivables from parent, subsidiaries and affiliates		442			550
	Other assets		507			364
	Allowance for uncollectible accounts		(25)			(18)
	Total admitted assets		$	20,519		$	20,706

	See Notes to Statutory Basis Financial Statements

5 STATEMENTS OF ADMITTED ASSETS – As of December 31, 2025 and 2024

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions, Except Par Value Per Share Information)


Statements of Liabilities, Capital and Surplus


	December 31, 2025			December 31, 2024

Liabilities
Reserves for losses and loss adjustment expenses		$	8,646		$	8,513


Unearned premium reserves		2,738			2,729
Commissions, premium taxes, and other expenses payable		144			137
Reinsurance payable on paid loss and loss adjustment expenses		243			279
Current federal and foreign taxes payable to parent		56			21

Funds held by company under reinsurance treaties		1,065			1,166
Provision for reinsurance		48			59
Ceded reinsurance premiums payable, net of ceding commissions		837			771
Collateral deposit liability		269			290
Payable for securities purchased		20			226
Payable to parent, subsidiaries and affiliates		291			611


Other liabilities		346			501
Total liabilities		$	14,703		$	15,303

Capital and Surplus
Common capital stock, $5 par value, 1,000,000 shares authorized, 895,750 shares issued and outstanding		$	4		$	4
Capital in excess of par value		3,910			3,910
Unassigned surplus		1,219			851

Special surplus funds from reinsurance		683			638
Total capital and surplus		$	5,816		$	5,403
Total liabilities, capital and surplus		$	20,519		$	20,706

See Notes to Statutory Basis Financial Statements

6 STATEMENTS OF LIABILITIES, CAPITAL and SURPLUS - As of December 31, 2025 and 2024

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)


		Statements of Operations and Changes in Capital and Surplus

			For the Years Ended December 31,
			2025			2024			2023
Statements of Operations
Underwriting income:
Premiums earned				$	4,873		$	4,509	$	4,624
Underwriting deductions:
	Losses incurred			2,548			2,305		2,588
	Loss adjustment expenses			434			539		381
	Other underwriting expenses			1,293			1,663		1,544
Total underwriting deductions				4,275			4,507		4,513






Net underwriting gain (loss)				598			2		111
Investment gain:
	Net investment income earned			798			843		690
	Net realized capital (losses) gains (net of capital gains tax expense: 2025- $(29); 2024 - $21; 2023 - $(1))			(247)			53		(124)
Net investment gain (loss)				551			896		566

Net loss from agents' or premium balances charged-off				(7)			—		(1)

Other income (expense)				(18)			(36)		(21)
Income (loss) after capital gains taxes and before federal income taxes				1,124			862		655
Federal and foreign income tax expense (benefit)				266			112		29
Net Income (loss)				$	858		$	750	$	626
Changes in Capital and Surplus
Capital and surplus, as of December 31, previous year				$	5,403		$	5,508	$	5,437
	Adjustment to beginning surplus (Note 2)			(30)			6		80
Capital and surplus, as of January 1,				5,373			5,514		5,517


		Cumulative effect of changes in accounting principles		—			—		14
	Other changes in capital and surplus:
		Net income		858			750		626
		Change in net unrealized capital (losses) gains (net of capital gains tax (benefit) expense: 2025 - $(27); 2024 -$43; 2023 - $1		168			(278)		105
		Change in net deferred income tax		22			(85)		(127)
		Change in nonadmitted assets		(65)			1		(43)
		Change in provision for reinsurance		13			(13)		(14)



		Dividends to stockholder		(475)			(625)		(650)
		Foreign exchange translation		(78)			139		80
		Change in ceded mortgage guaranty contingency reserve		1			2		4
		Change in assumed mortgage guaranty contingency reserve		(1)			(2)		(4)

	Total changes in capital and surplus			443			(111)		(9)
Capital and Surplus, as of December 31, 2025				$	5,816		$	5,403	$	5,508

See Notes to Statutory Basis Financial Statements

7 STATEMENTS OF OPERATIONS and CHANGES IN CAPITAL AND SURPLUS - for the years ending December 31, 2025, 2024 and 2023

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)


	Statements of Cash Flows

		For the Years Ended December 31,2025
		2025			2024			2023
Cash from Operations:
	Premiums collected, net of reinsurance		$	4,672		$	4,654	$	4,945
	Net investment income		758			841		665
	Miscellaneous income (expense)		(17)			17		28
	Sub-total		5,413			5,512		5,638
	Benefit and loss related payments		2,338			2,488		2,918

	Commission and other expense paid		1,730			2,006		1,950

	Federal and foreign income taxes payments (receipts)		197			147		18
	Net cash provided from (used in) operations		1,148			871		752
Cash from Investments
Proceeds from investments sold, matured, or repaid:
	Bonds		3,455			4,297		3,785
	Stocks		—			15		161
	Mortgage loans		600			513		508
	Other investments		539			651		298
	Total proceeds from investments sold, matured, or repaid		4,594			5,476		4,752
Cost of investments acquired:
	Bonds		4,690			4,438		3,957
	Stocks		2			(9)		145
	Mortgage loans		125			268		435
	Other investments		581			99		218
	Total cost of investments acquired		5,398			4,796		4,755
	Net cash (used in) provided from investing activities		(804)			680		(3)
Cash from Financing and Miscellaneous Sources


	Dividends to stockholder		(475)			(625)		(650)

	Intercompany receipts (payments)		(52)			(362)		(146)
	Net deposit activity on deposit-type contracts and other insurance		(2)			(1)		(2)

	Collateral deposit liability receipts		(21)			3		(169)
	Other receipts (payments)		(218)			229		68
	Net cash provided from (used in) financing and miscellaneous activities		(768)			(756)		(899)
Net change in cash, cash equivalents and short-term investments			(424)			795		(150)
Cash, cash equivalents and short-term investments:
	Beginning of year		1,519			724		874
	End of year		$	1,095		$	1,519	$	724

Refer to Note 11D for description of non-cash items.

	See Notes to Statutory Basis Financial Statements

8 STATEMENTS OF CASH FLOW – for the years ended December 31, 2025, 2024 and 2023

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

1.Organization and Summary of Significant Statutory Basis Accounting Policies

A.Basis of Organization and Presentation

Organization

National Union Fire Insurance Company of Pittsburgh, Pa. (“the Company” or “National Union”) is a direct wholly-owned subsidiary of AIG Property Casualty U.S., Inc. (“AIG PC US”), a Delaware corporation, which is in turn owned by AIG Property Casualty Inc. (“AIG PC”), a Delaware corporation. The Company’s ultimate parent is American International Group, Inc. (the "Ultimate Parent" or "AIG"). AIG conducts its property and casualty operations through multiple line companies writing substantially all commercial (casualty, property, specialty and financial liability) and consumer (accident & health and personal lines) insurance both domestically and abroad.

The Company is party to an inter-company pooling agreement (the “Combined Pooling Agreement”), among the seventeen companies listed below; collectively named the Combined Pool. Effective January 1, 2025, the Combined Pooling Agreement was amended and restated to include three new Pool members. The member companies of the Combined Pool, their National Association of Insurance Commissioners (“NAIC”) company codes, inter-company pooling percentages under the Combined Pooling Agreement, and states of domicile, are as follows:


Company	NAIC Company Code	Pool Participation Percentage as of January 1, 2025	Pool Participation Percentage as of December 31, 2024	State of Domicile
National Union Fire Insurance Company of Pittsburgh, Pa. (National Union)*	19445	35%	35%	Pennsylvania
American Home Assurance Company (American Home)	19380	32%	32%	New York
Lexington Insurance Company (Lexington)	19437	30%	30%	Delaware
Commerce and Industry Insurance Company (C&I)	19410	3%	3%	New York
AIG Property Casualty Company (APCC)	19402	0%	0%	Illinois
The Insurance Company of the State of Pennsylvania (ISOP)	19429	0%	0%	Illinois
New Hampshire Insurance Company (New Hampshire)	23841	0%	0%	Illinois
AIG Specialty Insurance Company (Specialty)	26883	0%	0%	Illinois
AIG Assurance Company (Assurance)	40258	0%	0%	Illinois
Granite State Insurance Company (Granite)	23809	0%	0%	Illinois
Illinois National Insurance Co. (Illinois National)	23817	0%	0%	Illinois
AIU Insurance Company (AIU)	19399	0%	0%	New York
Glatfelter Insurance Company (Glatfelter)	26611	0%	0%	Delaware
Marbleshore Specialty Insurance Company (Marbleshore)	13551	0%	0%	Delaware
Western World Insurance Company (Western World)	13196	0%	N/A	New Hampshire
Stratford Insurance Company (Stratford)	40436	0%	N/A	New Hampshire
Tudor Insurance Company (Tudor)	37982	0%	N/A	New Hampshire
* Lead Company of the Combined Pool

As shown in the table above, the Company’s participation in the Combined Pool remained the same. As such, there were no changes to the Company's Total capital and surplus on January 1, 2025 as a consequence of the amendment to the Combined Pooling Agreement.

Refer to Note 6 for additional information on the Combined Pool and the effects of the changes in the intercompany pooling arrangements (the "2025 Repooling Transaction").

The 2025 Repooling Transaction is presented in the supporting loss schedules as an adjustment to the opening balances so that the activity for the period is not distorted by the effects of this transaction.

The Company accepts commercial business primarily through a network of independent retail and wholesale brokers and through independent agency networks. In addition, the Company accepts consumer business primarily through agents and brokers, as well as through direct marketing and partner organizations.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 9 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The following table shows the Managing Agents or Third Party Administrators who placed direct written premium with the Company in an amount exceeding more than 5.0 percent of surplus for the year ended December 31:

2025

Name and Address of Managing General Agent or Third Party Administration

FEIN
Number

Exclusive Contract

Types of Business Written

Types of Authority Granted *

Total Direct Premium Written/Produced By

Glatfelter Underwriting Services, Inc.
183 Leader Heights Road, York, PA 17405

23-2643776

Yes

General Liability, Liability, Property, and Commercial Automobile

C, CA, B, P, U

230

Volunteer Firemen's Insurance Services Inc
183 Leader Heights Road, York, PA 17405

23-1732969

Yes

General Liability, Liability, Property, and Commercial Automobile

C, CA, B, P, U

364

Total

594

2024

Name and Address of Managing General Agent or Third Party Administration

FEIN
Number

Exclusive Contract

Types of Business Written

Types of Authority Granted *

Total Direct Premium Written/Produced By

Glatfelter Underwriting Services, Inc.
183 Leader Heights Road, York, PA 17405

23-2643776

Yes

General Liability, Liability, Property, and Commercial Automobile

C, CA, B, P, U

251

Volunteer Firemen's Insurance Services Inc
183 Leader Heights Road, York, PA 17405

23-1732969

Yes

General Liability, Liability, Property, and Commercial Automobile

C, CA, B, P, U

348

Total

599

2023

Name and Address of Managing General Agent or Third Party Administration

FEIN
Number

Exclusive Contract

Types of Business Written

Types of Authority Granted *

Total Direct Premium Written/Produced By

Glatfelter Underwriting Services, Inc.
183 Leader Heights Road, York, PA 17405

23-2643776

Yes

General Liability, Liability, Property, and Commercial Automobile

C, CA, B, P, U

242

Volunteer Firemen's Insurance Services Inc.
183 Leader Heights Road, York, PA 17405

23-1732969

Yes

General Liability, Liability, Property, and Commercial Automobile

C, CA, B, P, U

318

Total

560

*Authority Codes Sample Listing:

C - Claims Payment
CA - Claims Adjustment
B - Binding Authority
P - Premium Collection
U - Underwriting

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 10 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The Company is diversified in terms of classes of its business, distribution network and geographic locations. The Company has direct written premium concentrations of 5.0 percent or more in the following locations:


State/Location	2025		2024		2023
California	$	659	$	761	$	764
New York	519		456		480
Pennsylvania*	241		404		285
Texas	774		693		643
*Pennsylvania is below 5% in 2025 and 2023

Basis of Presentation

The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Insurance Department of the Commonwealth of Pennsylvania ("PA SAP"). Certain balances relating to prior periods have been reclassified to conform to the current year’s presentation.

Additionally, the financial statements include the Company’s U.S. and foreign operations, along with its Guam, Saipan and Colombia branch operations.

The Company’s financial information as of and for the years ended December 31, 2025, 2024 and 2023 have been presented in accordance with the terms of the Combined Pooling Agreement.

B.Permitted and Prescribed Practices

PA SAP recognizes only statutory accounting practices prescribed or permitted by the Insurance Department of the Commonwealth of Pennsylvania ("PA DOI") for determining and reporting the financial position and results of operations of an insurance company and for the purpose of determining its solvency under the Pennsylvania Insurance Code. The NAIC Statutory Accounting Principles included within the Accounting Practices and Procedures Manual (“NAIC SAP”) have been adopted as a component of prescribed practices by the PA DOI. The Commissioner of the PA DOI (“the Commissioner”) has the right to permit other specific practices that differ from prescribed practices.

PA SAP has prescribed the practice of discounting workers’ compensation known case and incurred but not reported (“IBNR”) loss reserves on a non-tabular basis. This practice is not prescribed under NAIC SAP.

PA SAP has prescribed the availability of certain offsets in the calculation of the Provision for reinsurance, which are not prescribed under NAIC SAP. The Company has received approval to reflect the transfer of collection risk on certain of the Company’s asbestos related reinsurance recoverable balances to an authorized third party reinsurer, as another form of collateral acceptable to the Commissioner with respect to the reinsurance recoverable balance from the original reinsurers.

The Company applied a permitted practice to account for the retroactive aggregate excess of loss reinsurance arrangement entered into with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway, Inc., (the “ADC”) as prospective reinsurance. However, any gain associated with the ADC has been reported in a segregated surplus account and does not form part of the Company’s Unassigned surplus, subject to the applicable dividend restrictions; such amounts must be restricted in surplus until such time as payments received from NICO exceed premiums paid for the retrocession. Segregated surplus balances were $676, $630, and $446 at December 31, 2025, 2024 and 2023, respectively. The effects of the ADC comprise the majority of total segregated surplus; accordingly, Statutory surplus, NAIC SAP, excluding segregated surplus, was $4,678, $4,290, $4,596 at December 31, 2025, 2024 and 2023 respectively. For more information, see Note 7.

The use of the aforementioned permitted and prescribed practices has not affected the Company’s ability to comply with the PA DOI’s risk based capital ("RBC") and surplus requirements for the 2025, 2024 and 2023 reporting periods.

A reconciliation of the net income (loss) and capital and surplus between NAIC SAP and practices prescribed or permitted by PA SAP is shown below:

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 11 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)


December 31,	SSAP #	FS Ref	2025		2024		2023
Net income, PA SAP			$	858	$	750	$	626
State prescribed or permitted practices - addition (charge):
Change in non-tabular discounting	65	(a)	(23)		40		(23)
Adverse Development Cover	62	(b)	—		—		—
Net income, NAIC SAP			$	881	$	710	$	649
Statutory surplus, PA SAP			5,816		5,403		5,509
State prescribed or permitted practices - addition (charge):
Non-tabular discounting	65	(a)	433		456		416
Credits for collection risk on certain asbestos reinsurance recoveries	62	(c)	53		30		44

Statutory surplus, NAIC SAP			$	5,330	$	4,917	$	5,049

(a)Impacts Reserves for losses and loss adjustment expenses within the Statements of Liabilities, Capital and Surplus and Losses incurred within the Statements of Operations and Changes in Capital and Surplus.

(b)Impacts Reserves for losses and loss adjustment expenses, Retroactive reinsurance payable and Retroactive reinsurance reserves - ceded within the Combined Statements of Liabilities, Capital and Surplus, and Losses incurred and Other income within the Combined Statements of Operations and Changes in Capital and Surplus.

(c)Impacts Provision for reinsurance within the Statements of Liabilities, Capital and Surplus and the change in Provision for reinsurance within the Statements of Operations and Changes in Capital and Surplus.

C.Use of Estimates in the Preparation of the Financial Statements

The preparation of statutory basis financial statements in accordance with PA SAP requires the application of accounting policies that often involve a significant degree of judgment. The Company’s accounting policies that are most dependent on the application of estimates and assumptions are considered critical accounting estimates and are related to the determination of:

•Loss reserves;

•Reinsurance assets;

•Fair value of certain financial assets, impacting those investments measured at fair value in the Statements of Admitted Assets, Liabilities, Surplus and Other Funds, as well as unrealized gains (losses) included in capital and surplus; and

•Income tax assets and liabilities, including the recoverability and admissibility of net deferred tax assets.

These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, the Company’s statutory basis financial condition, results of operations and cash flows could be materially affected.

D. Accounting Policy Differences

NAIC SAP is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America ("US GAAP"). NAIC SAP varies from US GAAP in certain significant respects, including:


Transactions	NAIC SAP Treatment	US GAAP Treatment
Policy Acquisition Costs Principally brokerage commissions and premium taxes arising from the issuance of insurance contracts.	Costs are immediately expensed and are included in Other Underwriting Expenses, except for reinsurance ceding commissions received in excess of the cost to acquire business which are recognized as a deferred liability and amortized over the period of the reinsurance agreement.	Costs directly related to the successful acquisition of new or renewal insurance contracts are deferred and amortized over the term of the related insurance coverage.
Unearned Premiums, Unpaid Losses and Loss Expense Liabilities	Presented net of reinsurance.	Presented gross of reinsurance with corresponding reinsurance recoverable assets for ceded unearned premiums and reinsurance recoverable on unpaid losses.
Retroactive reinsurance contracts	Gains and losses are recognized in earnings immediately and surplus is segregated to the extent pretax gains are recognized. Certain retroactive affiliate or related party reinsurance contracts are accounted for as prospective reinsurance if there is no gain in surplus as a result of the transaction.	Gains are deferred and amortized over the settlement period of the ceded claim recoveries. Losses are immediately recognized in the Statements of Operations.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 12 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)


Transactions	NAIC SAP Treatment	US GAAP Treatment
Investments in Bonds held as: 1) available for sale 2) fair value option	Investment grade securities (rated by NAIC as class 1 or 2) are carried at amortized cost. Non-investment grade securities (NAIC rated 3 to 6) are carried at the lower of amortized cost or fair value.	All available for sale investments are carried at fair value with changes in fair value, net of applicable taxes, reported in accumulated other comprehensive income within shareholder’s equity. Fair value option investments are carried at fair value with changes in fair value, net of applicable projected income taxes, reported in Net Investment Income.
Investments in Common Stocks	Carried at fair value with unrealized gains and losses reported, net of applicable taxes, in the Statements of Changes in Capital and Surplus.	All equity securities that do not follow the equity method of accounting, are measured at fair value with changes in fair value recognized in earnings.
Investments in Limited Partnerships, Hedge Funds and Private Equity Interests	Carried at the underlying US GAAP equity with results from the investment’s operations recorded, net of applicable taxes, as unrealized gains (losses) directly in the Statements of Changes in Capital and Surplus.	If aggregate interests allow the holding entity to exercise more than significant influence (typically more than 3%), the investment is recorded as an equity method investment wherein the pool's pro rata share of income or loss for the period, is recorded as net investment income and adjusted against the carrying value of the asset. Similar equity method investments in investment company entities (e.g.: hedge funds) is adjusted for the pool’s pro rata share of income or loss for the period which is based on the Net Asset Value ("NAV") with changes in value recorded to Net Investment Income. Where the aggregate interests do not allow the entity to exercise significant influence (typically less than 3%), the investment is recorded as equity investment fair valued through net investment income. Similar equity investment in investment companies (e.g.: hedge funds) are recorded at NAV with changes in value recorded to Net Investment Income.
Investments in Subsidiary, Controlled and Affiliated Entities (SCAs)	Subsidiaries are not consolidated.	Consolidation is required when there is a determination that the affiliated entity is a variable interest entity ("VIE") and the reporting entity has a variable interest and the power to direct the activities of the VIE. The VIE assessment would consider various factors including limited partnership (LP) status and inherent rights of equity investors.
	The equity investment in SCAs are accounted for under the equity method and recorded as Common stock investments. Dividends are recorded within Net Investment Income.	Investments in SCAs that are voting interest entities (VOE) with majority voting rights are generally consolidated.
		Investments in SCAs where the holding entity exercises significant influence (generally ownership of >3% voting interests for LPs and similar entities and between 20 percent and 50 percent for other entities) are recorded at equity value. The change in equity is included within Net Investment Income.
Other-than-temporary impairments	Bonds, other than loan-backed and structured securities, which are considered to be other-than-temporarily impaired, are written down to fair value with a realized loss recognized in the Statements of Operations.	The non-credit portion of impairments relating to debt securities that the entity does not intend to sell and for which it is not more likely than not that the entity will be required to sell before anticipated recovery is recorded in other comprehensive income.
Derivatives	Embedded derivatives are not separated from the host contract and not accounted for separately as derivative instruments.	Contracts may include embedded derivatives that are bifurcated from the host contracts and accounted for separately at fair value.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 13 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)


Transactions	NAIC SAP Treatment	US GAAP Treatment
Statement of Cash Flows	Statutory Statements of Cash Flows must be presented using the direct method. Changes in cash, cash equivalents, and short-term investments and certain sources of cash are excluded from operational cash flows.	The Statements of Cash Flows can be presented using the direct or indirect methods, however are typically presented using the indirect method. Presentation is limited to changes in cash and cash equivalents (short-term investments are excluded).
Deferred Federal Income Taxes	Deferred income taxes are established for the temporary differences between tax and book assets and liabilities, subject to limitations on admissibility of tax assets. Changes in deferred income taxes are recorded within capital and surplus and have no impact on the Statements of Operations.	The provision for deferred income taxes is recorded as a component of income tax expense, as a component of the Statements of Operations, except for changes associated with items that are included within other comprehensive income where such items are recorded net of applicable income taxes.
Statutory Adjustments (applied to certain assets including goodwill, furniture and equipment, prepaid expenses, overdue receivable balances and unsecured reinsurance amounts)	Certain asset balances designated as nonadmitted, such as some intangible assets and certain investments in affiliated entities are excluded from the Statements of Admitted Assets and are reflected as deductions from capital and surplus.	All assets and liabilities are included in the financial statements. Provisions for uncollectible receivables are established as valuation allowances and are recognized as expense within the Statements of Operations.

The effects on the financial statements of the variances between NAIC SAP and US GAAP, although not reasonably determinable, are presumed to be material.

E.Significant Statutory Accounting Policies

Premiums

Premiums

Premiums for insurance and assumed reinsurance contracts are recorded as gross premiums written as of the effective date of the policy. Premiums are earned primarily on a pro-rata basis over the term of the related insurance coverage. Premiums collected prior to the effective date of the policy are recorded as an advance premium liability and not considered income until due. Extended reporting endorsements are reflected as premiums written and are earned on a pro-rata basis over the stated term of the endorsement unless the term of the endorsement is indefinite, in which case premiums are fully earned at inception of the endorsement along with the recognition of associated loss and loss adjustment expense (“LAE”).

Unearned premium reserves are established on an individual policy basis, reflecting the terms and conditions of the coverage being provided. Unearned premium reserves represent the portion of premiums written relating to the unexpired terms of coverage as of the date of the financial statements. For policies with coverage periods equal to or greater than thirteen months and generally not subject to cancellation or modification by the Company, premiums are earned using a prescribed percentage of completion method. Additional unearned premium reserves for policies exceeding thirteen months are established as greater of three prescribed tests.

Reinsurance premiums are typically earned over the same period as the underlying policies, or risks, covered by the contracts. As a result, the earnings pattern of a reinsurance contract generally written for a 12 month term may extend up to 24 months, reflecting the inception dates of the underlying attaching policies throughout the 12 month period of the reinsurance contract. Reinsurance premiums ceded are recognized as a reduction in revenues over the period reinsurance coverage is provided.

Insurance premiums billed and outstanding for 90 days or more are nonadmitted and charged against Unassigned funds (surplus).

Premiums for retrospectively rated contracts are initially recorded based on the expected loss experience and are earned on a pro-rata basis over the term of the related insurance coverage. Additional or returned premium is recorded if the estimated loss experience differs from the initial estimate and is immediately recognized in earned premium. The Company records accrued retrospectively rated premiums as written premiums. Adjustments to premiums for changes in the level of exposure to insurance risk are generally determined based upon audits conducted after the policy expiration date.

Gross written premiums net of ceded written premiums (“Net written premiums”) that were subject to retrospective rating features as of December 31, 2025, 2024 and 2023 were as follows:


Years ended December 31,	2025			2024			2023
Net written premiums subject to retrospectively rated contracts	$	38		$	35		$	44
Percentage of total net written premiums	0.8		%	0.8		%	1.0		%

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 14 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

As of December 31, 2025 and 2024, the admitted portion of accrued premiums related to the Company's retrospectively rated contracts were $176 and $207, respectively, which will be billed in future periods based primarily on the payment of the underlying expected losses and LAE. Unsecured amounts associated with these accrued retrospective premiums were $31 and $44 as of December 31, 2025 and 2024, respectively. Ten percent of the amount of accrued retrospective premiums receivable not offset by retrospective return premiums or other liabilities to the same party, other than loss and LAE reserves, or collateral (collectively referred to as the unsecured amount) have been nonadmitted in the amount of $4 and $4 as of December 31, 2025 and 2024, respectively.

High Deductible

The Company establishes loss reserves for high deductible policies net of the insured’s contractual deductible (such deductibles are referred to as “reserve credits”). The Company establishes a nonadmitted asset for ten percent of paid losses recoverable in excess of collateral held on an individual insured basis, or for one hundred percent of paid losses recoverable where no collateral is held and amounts are outstanding for more than ninety days. Additionally, the Company establishes an allowance for doubtful accounts for such paid losses recoverable in excess of collateral and after nonadmitted assets. Similarly, the Company does not recognize reserve credit offsets to its estimate of loss reserves where such credits are deemed uncollectible, as the Company ultimately bears credit risk on the underlying policies’ insurance obligations.

The following tables show the counterparty exposure on unpaid claims and billed recoverable on paid claims for high deductibles by line of business, as of December 31, 2025 and 2024:


December 31, 2025	Gross Loss Reserves			Reserve Credits on Unpaid Claims			Recoverable on Paid Claims			Total
Auto Liability		$	814		$	680		$	1		$	681
General Liabilities		690			648			1			649
Workers Compensation		4,044			3,474			5			3,479
Total		$	5,548		$	4,802		$	7		$	4,809

As of December 31, 2025, both on-balance sheet and off-balance sheet collateral pledged to the Company related to deductible and paid recoverables was $117 and $3,258, respectively. Unsecured high deductible amounts related to unpaid claims and for paid recoverables for 2025 were $1,434, or 30% of the total high deductible. Additionally, as of December 31, 2025, the Company had recoverables on paid claims greater than 90 days overdue of $4, of which $2 have been nonadmitted.


December 31, 2024	Gross Loss Reserves			Reserve Credits on Unpaid Claims			Recoverable on Paid Claims			Total
Auto Liability		$	699		$	595		$	2		$	597
General Liabilities		606			567			2			569
Workers Compensation		3,616			3,041			11			3,052
Total		$	4,921		$	4,203		$	15		$	4,218

As of December 31, 2024, both on-balance sheet and off-balance sheet collateral pledged to the Company related to deductible and paid recoverables was $139 and $2,884, respectively. Unsecured high deductible amounts related to unpaid claims and for paid recoverables for 2024 were $1,197, or 28% of the total high deductible. Additionally, as of December 31, 2024, the Company had recoverables on paid claims greater than 90 days overdue of $9, of which $4 have been nonadmitted.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 15 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The following table shows the deductible amounts for the highest ten unsecured high deductible policies as of December 31, 2025 and 2024:


Counterparty*	Unsecured High Deductible Amounts
December 31,	2025			2024
Counterparty 1		$	122		$	110
Counterparty 2		94			92
Counterparty 3		77			77
Counterparty 4		75			49
Counterparty 5		56			49
Counterparty 6		49			48
Counterparty 7		39			39
Counterparty 8		31			23
Counterparty 9		31			22
Counterparty 10		24			21
*Actual counterparty is not named and may vary year over year. Additionally, a group of entities under common control is regarded as a single counterparty.

Deposit Accounting

Direct insurance transactions where management determines there is insufficient insurance risk transfer are recorded as deposits unless the policy was issued (i) in respect of the insured’s requirement for evidence of coverage pursuant to applicable statutes (insurance statutes or otherwise), contractual terms or normal business practices, (ii) in respect of an excess insurer’s requirement for an underlying primary insurance policy in lieu of self-insurance, or (iii) in compliance with filed forms, rates and/or rating plans.

Assumed and ceded reinsurance contracts, which do not transfer a sufficient amount of insurance risk are recorded as deposits with the net consideration paid or received recognized as a deposit asset or liability, respectively. Deposit assets are admitted if (i) the assuming company is licensed, accredited or qualified by the PA DOI, or (ii) the collateral (i.e., funds withheld, letters of credit or trusts) provided by the reinsurer meets all the requirements of the NY SAP, as applicable. The deposit asset or liability is adjusted by calculating the effective yield on the deposit to reflect the actual payments made or received to date and expected future payments with a corresponding credit or charge to Other Income (Expense) in the Statements of Operations.

Deposit assets are recorded to Other assets within the Statements of Admitted Assets, refer to Note 11A. Deposit liabilities are recorded to Other liabilities within the Statements of Liabilities, Capital and Surplus, refer to Note 11B.

Premium Deficiency

The Company periodically reviews its expected ultimate losses with respect to its unearned premium reserves. A premium deficiency loss and related liability are established if the unearned premium reserves and related future investment income are collectively not sufficient to cover the expected ultimate loss projection. For purposes of premium deficiency tests, contracts are grouped in a manner consistent with the manner in which the insurance contracts are acquired, serviced, and measured for the profitability of such contracts. As of December 31, 2025 and 2024, the Company did not incur any premium deficiency losses.

Retroactive Reinsurance

Reinsurance transactions involving the transfer of loss and LAE reserves associated with loss events that occurred prior to the effective date of the transfer are recorded as retroactive reinsurance and reported separately from Reserves for losses and loss adjustment expenses in the Statements of Liabilities, Capital and Surplus. Initial pre-tax gains or losses are recorded in Retroactive reinsurance gain within the Statements of Operations and Changes in Capital and Surplus with surplus gains recorded as Special surplus funds from reinsurance, which is a component of Capital and Surplus that is restricted from dividend payment. Amounts recorded in Special surplus funds from reinsurance are considered to be earned surplus (i.e., transferred to Unassigned surplus) only when, and to the extent that, cash recoveries from the assuming entity exceed the consideration paid by the ceding entity. Special surplus funds from reinsurance are maintained separately for each respective retroactive reinsurance agreement. Special surplus funds from reinsurance account write-in entry on the balance sheet is adjusted, upward or downward, to reflect any subsequent increase or reduction in reserves ceded. The reduction in the special surplus funds is limited to the lesser of amounts recovered by the Company in excess of consideration paid or the surplus gain in relation to such agreement.

To the extent that the transfer of loss and LAE reserves associated with loss events that occurred prior to the effective date of the transfer is between affiliated entities and neither entity records a gain or loss in surplus, the transaction qualifies as an exception in the NAIC SAP accounting guidance and is accounted for as prospective reinsurance.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 16 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

Insurance Related Acquisition Costs

Commissions, premium taxes, and certain underwriting costs are expensed as incurred and are included in Other underwriting expenses. The Company records an unearned ceding commission accrual equal to the excess of the ceding commissions received from reinsurers compared to the anticipated acquisition cost of the business ceded. This amount is amortized as an increase to income over the effective period of the reinsurance agreement in proportion to the amount of insurance coverage provided.

Provisions for Allowances and Unauthorized or Overdue Reinsurance

The recoverability of certain assets, including insurance receivables with counterparties, is reviewed periodically by management. A minimum reserve, as required under the NAIC Annual Statement Instructions for Property and Casualty Companies for Schedule F–Provision for Overdue Reinsurance for uncollectible reinsurance, is recorded with an additional reserve required if an entity's experience indicates that a higher amount should be provided. The minimum reserve is recorded as a liability and the change between years is recorded as a gain or loss directly to Unassigned surplus in the Statement of Liabilities, Capital and Surplus. Any reserve over the minimum amount is recorded on the statement of operations by reversing the accounts previously utilized to establish the reinsurance recoverable. Various factors are taken into consideration when assessing the recoverability of these asset balances including: the age of the related amounts due and the nature of the unpaid balance, disputed balances, historical recovery rates and any significant decline in the credit standing of the counterparty. The Company has prepared Schedule F applying

State of Pennsylvania substantive reinsurance authorization rules and State of New York form of collateral rules, with concurrence from the PA

DOI.

Reserves for Losses, and Loss Adjustment Expenses

Reserves for case IBNR and LAE losses are determined on the basis of actuarial specialists’ evaluations and other estimates, including historical loss experience. The methods of making such estimates and for establishing the resulting reserves are reviewed and updated based on available information, and any resulting adjustments are recorded in the current period. Accordingly, newly established reserves for losses and LAE, or subsequent changes, are charged to income as incurred. In the event of loss recoveries through reinsurance agreements, loss and LAE reserves are reported net of reinsurance amounts recoverable for unpaid losses and LAE. Losses and LAE ceded through reinsurance are netted against losses and LAE incurred. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsurance policy based upon the terms of the underlying contract. See Note 5 for further discussion of policies and methodologies for estimating the liabilities and losses.

Workers' compensation reserves are discounted in accordance with the PA DOI statutes; see Note 5 for further details.

Salvage and subrogation recoverables are estimated using past experience adjusted for current trends, and any other factors that would modify past experience. Estimated salvage and subrogation recoveries (net of associated expenses) are deducted from the liability for unpaid claims or losses.

Structured Settlements

In the ordinary course of business, the Company enters into structured settlements to settle certain claims. Structured settlements involve the purchase of an annuity to fund future claim obligations. In the event the life insurers providing the annuity, on certain structured settlements, are not able to meet their obligations, the Company would be liable for the payments of benefits. As of December 31, 2025, the Company has not incurred a loss and there has been no default by any of the life insurers included in the transactions. Management believes that based on the financial strength of the life insurers involved in these structured settlements (mostly affiliates) the likelihood of a loss is remote.

The estimated loss reserves eliminated by such structured settlement annuities and the unrecorded loss contingencies as of December 31, 2025 and 2024 were $1,132 and $1,159, respectively.

As of December 31, 2025, the Company had annuities with aggregate statement values in excess of one percent of its policyholders’ surplus with life insurer affiliates as follows:

Life Insurance Company

State of Domicile

Licensed in Pennsylvania

Statement Value

American General Life Insurance Company

Texas

Yes

126

American General Life Insurance Company of Delaware

Delaware

Yes

218

The United State Life Insurance Company in the City of New York

New York

Yes

742

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 17 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

Fair Value of Financial Instruments

The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions.

Assets and liabilities recorded at fair value are measured and classified in accordance with a fair value hierarchy consisting of three ‘levels’ based upon the observability of inputs available in the marketplace as discussed below:

•Level 1: Fair value measurements that are based upon quoted prices (unadjusted) in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. The quoted price for such instruments is not subject to adjustment.

•Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

•Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions as to the inputs a hypothetical market participant would use to value that asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The Company’s policy is to recognize transfers in and out at the end of the reporting period, consistent with the date of the determination of fair value (See Note 4 for the balance and activity of financial instruments). The valuation methods and assumptions used in estimating the fair values of financial instruments are as follows:

•The fair values of bonds, mortgage loans, unaffiliated common stocks and preferred stocks are based on fair values that reflect the price at which a security would sell in an arm’s length transaction between a willing buyer and seller. As such, sources of valuation include third party pricing sources, stock exchanges, brokers or custodians or the NAIC Capital Markets and Investment Analysis Office ("NAIC IAO").

•The fair value of derivatives is determined using quoted prices in active markets and other market evidence whenever possible, including market-based updates, broker or dealer quotations or alternative pricing sources.

•The carrying value of all other financial instruments approximates fair value due to the short term nature.

Cash Equivalents and Short-Term Investments

Cash equivalents are short-term, highly liquid investments, with original maturities of three months or less, that are both; (a) readily convertible to known amounts of cash; and (b) so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Highly liquid debt securities with maturities of greater than three months but less than twelve months from the date of purchase are classified as short-term investments. Short-term investments are carried at amortized cost which approximates fair value.

Bonds and Asset Backed and Structured Securities (excluding non-rated residual tranches or interests)

Bonds include any securities representing a creditor relationship, whereby there is a fixed schedule for one or more future payments such as US government agency securities, municipal securities, corporate and convertible bonds, and fixed income instruments.Asset-Backed securities (“ABS”) include residential mortgage-backed securities (“RMBS”), commercial mortgage-backed securities (“CMBS”), collateralized loan obligations (“CLO”), asset-backed securities, and other collateralized securities.

Bonds and ABS with an NAIC designation (as obtained from the NAIC Investment Analysis Office (“IAO”)) of “1” or “2” (considered to be investment grade) are carried at amortized cost. Bonds and ABS with an NAIC designation of “3”, “4”, “5”, “5GI”, “6” or “6*” (considered to be non-investment grade) are carried at the lower of amortized cost or fair value. Asset-Backed Securities fair values are primarily determined using independent pricing services and broker quotes. Bonds and ABS that have not been filed with the NAIC IAO, and have not received a designation in over a year are assigned a 5GI or 6* designation depending on if the obligor is current on contracted principal and interest. Bond and ABS securities that have been filed and received a 6* designation can carry a value greater than zero. Bond and ABS securities are assigned a 5GI designation when the following conditions are met: a) the documentation required for a full credit analysis did not exist, b) the issuer/obligor has made all contractual

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 18 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

interest and principal payments, and c) an expectation of repayment of interest and principal exists. Amortization of premium or discount on bonds and ABS is calculated using the effective yield method.

Additionally, mortgage-backed securities (“MBS”) and ABS prepayment assumptions were obtained from an outside vendor or internal estimates. The retrospective adjustment method is used to account for the effect of unscheduled payments affecting high credit quality securities, while securities with less than high credit quality and securities for which the collection of all contractual cash flows is not probable are both accounted for using the prospective adjustment method.

Non-rated residual tranches or interests

Non-rated residual tranches or interests are carried at the lower of cost or fair value. Changes in carrying value are record as Unrealized gains or (losses) in the Statement of Changes in Capital and Surplus.

Mortgage Loans

Mortgage loans on real estate are carried at unpaid principal balances, net of unamortized premiums, discounts and impairments. Pre-payments of principal are recorded as a reduction in the mortgage loan balance. If a mortgage loan provides for a prepayment penalty or acceleration fee in the event the loan is liquidated prior to its scheduled termination date, such fees are reported as investment income when received. Interest income includes interest collected, the change in interest income due and accrued, the change in unearned interest income, and the amortization of premiums, discounts, and deferred fees.

Impaired loans are identified by management as loans in which it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The Company accrues income on impaired loans to the extent it is deemed collectible and the loan continues to perform under its original or restructured contractual terms. Non-performing loan interest income that is delinquent more than 90 days is generally recognized on a cash basis.

Mortgage loans are considered impaired when collection of all amounts due under contractual terms is not probable. Impairment is measured using either i) the present value of expected future cash flows discounted at the loan’s effective interest rate, ii) the loan’s observable market price, if available, or iii) the fair value of the collateral if the loan is collateral dependent. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on statistical models primarily driven by past due status, debt service coverage, loan-to-value ratio, property occupancy, profile of the borrower and of the major property tenants, and economic trends in the market where the property is located. When all or a portion of a loan is deemed uncollectible, the uncollectible portion of the carrying amount of the loan is charged off against the allowance.

Preferred Stocks

Perpetual preferred stocks with an NAIC rating of “P1” or “P2”, having characteristics of equity securities are carried at fair value. Redeemable preferred stocks with an NAIC rating of “RP1” or “RP2”, which have characteristics of debt securities, are carried at book value. All preferred stocks with an NAIC rating of “3” through “6” are carried at the lower of book or fair value.

Unaffiliated Common Stock Securities

Unaffiliated common stock investments are carried at fair value with changes in fair value recorded as Unrealized gains or (losses) in Unassigned funds (surplus), or as realized losses in the event a decline in value is determined to be other than temporary. For Federal Home Loan Bank ("FHLB") capital stock, which is only redeemable at par, the fair value shall be presumed to be par, unless considered other-than-temporarily impaired.

Common and preferred stock investments whose fair value is less than their carrying value or is at a significant discount to acquisition value are considered to be potentially impaired. For securities with unrealized losses, an analysis is performed. Factors include:

•If management intends to sell a security that is in an unrealized loss position then an OTTI loss is considered to have occurred;

•If the investments are trading at a significant (25 percent or more) discount to par, amortized cost (if lower) or cost for an extended period of time based on facts and circumstances of the investment; or

•If a discrete credit event occurs resulting in: (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under bankruptcy law or any similar laws intended for court supervised reorganization of insolvent enterprises; or, (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than par value of their claims; or

•If there are other factors precluding a full recovery of the investment.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 19 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

Investments in subsidiaries and affiliated companies

Investments in non-publicly traded affiliates are recorded based on the underlying equity of the respective entity’s financial statements as presented on a basis consistent with the nature of the affiliates' operations (including any nonadmitted amounts). The Company’s share of undistributed earnings and losses of affiliates is recorded as unrealized gains (losses) in Unassigned surplus.

Investments in joint ventures, partnerships and limited liability companies

Other invested assets include joint ventures and partnerships and are accounted for under the equity method, based on the most recent financial statements of the entity. Changes in carrying value are recorded as unrealized gains (losses). Additionally, other invested assets include investments in collateralized loans that are recorded at the lower of amortized cost and the fair value of the underlying collateral. Changes in carrying value resulting from adjustments where the fair value is less than amortized cost are recorded as unrealized gains (losses) in Unassigned surplus, while changes resulting from amortization are recorded as Net investment income

Derivatives

Derivative financial instruments are accounted for at fair value using quoted prices in active markets and other market evidence whenever possible, including market-based inputs to valuation models, broker or dealer quotations or alternative pricing sources, reduced by the amount of collateral held or posted by the Company with respect to the derivative position. Changes in carrying value are recorded as unrealized gains (losses) in Unassigned surplus.

Net investment income and gain/loss

Investment income is recorded as earned and includes interest, dividends and earnings from subsidiaries, loans and joint ventures. Realized gains or losses on the disposition or impairment of investments are determined on the basis of specific identification.

Investment income due and accrued is assessed for collectability. The Company records a valuation allowance on investment income receivable when it is probable that an amount is uncollectible by recording a charge against investment income in the period such determination is made. Any amounts receivable over 90 days past due, or 180 days past due for mortgage loans, that do not have a valuation allowance are nonadmitted by the Company.

Evaluating Investments for Other-Than-Temporary Impairment

If a bond is determined to have an OTTI in value the cost basis is written down to fair value as its new cost basis, with the corresponding charge to Net realized capital gains (losses) as a realized loss.

For bonds, other than loan-backed and structured securities, an OTTI shall be considered to have occurred if it is probable that the Company will not be able to collect all amounts due under the original contractual terms.

For asset-backed and structured securities, an OTTI shall be considered to have occurred if the fair value of a security is below its amortized cost and management intends to sell or does not have the ability and intent to retain the security until recovery of the amortized cost (i.e., intent based impairment). When assessing the intent to sell a security, management evaluates relevant facts and circumstances including, but not limited to, decisions to rebalance the investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing.

In general, a security is considered for OTTI if it meets any of the following criteria:

•The Company may not realize a full recovery on their investment based on lack of ability or intent to hold a security to recovery;

•Fundamental credit risk of the issuer exists; or

•Other qualitative/quantitative factors exist indicating an OTTI has occurred.

When a credit-related OTTI is present, the amount of OTTI recognized as a realized capital loss is equal to the difference between the investment’s amortized cost basis and the present value of cash flows expected to be collected regardless of management’s ability or intent to hold the security.

•If management intends to sell a security that is in an unrealized loss position then an OTTI loss is considered to have occurred;

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 20 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

•If there are other factors precluding a full recovery of the investment.

Limited partnership investments whose fair value is less than its book value with a significant unrealized loss are considered for OTTI. OTTI factors that are periodically considered include:

•If an order of liquidation or other fundamental credit issues with the partnership exists;

•If there is a significant reduction in scheduled cash flow activities between the Company and the partnership or fund during the year;

•If there is an intent to sell, or the Company may be required to sell, the investment prior to the recovery of cost of the investment; or

•If other qualitative/quantitative factors indicating an OTTI exist based on facts and circumstances of the investment.

Foreign Currency Translation

Foreign currency denominated assets and liabilities are translated into U.S. dollars using rates of exchange prevailing at the period end date. Revenues, expenses, gains, losses and surplus adjustments, of non-U.S. operations are translated into U.S. dollars based on weighted average exchange rate for the period. All gains or losses due to translation adjustments are recorded as unrealized gains (losses) within Unassigned surplus in the Statements of Liabilities, Capital and Surplus. All realized gains and losses due to exchange differences between settlement date and transaction date resulting from foreign currency transactions, not in support of foreign insurance operations, are included in Net realized capital gains (losses) in the Statements of Operations and Changes in Capital and Surplus.

Retirement Plans, Deferred Compensation, Postemployment Benefits and Compensated Absences and Other Postretirement Benefit Plans

The Company's employees participate in various AIG-sponsored defined benefit pension and postretirement plans. AIG, as sponsor, is ultimately responsible for the maintenance of these plans in compliance with applicable laws. The Company is not directly liable for obligations under these plans. AIG charges the Company and its insurance company affiliates pursuant to intercompany expense sharing agreements; the expenses are then shared by the pool participants in accordance with the pooling agreement.

The Company incurred employee related costs related to defined benefit and defined contribution plans during 2025, 2024 and 2023 of $5, $5, and $12, respectively.

Income Taxes

The Company files a consolidated U.S. federal income tax return with AIG. AIG has more than 100 subsidiaries which form part of this tax return. A complete listing of the participating subsidiaries is included in Note 8.

The Company is allocated U.S. federal income taxes based upon an amended and restated tax sharing agreement (the “Tax Sharing Agreement”) with AIG, effective January 1, 2023, and approved by the Company's Board of Directors. This agreement provides that the Company shall incur tax results that would have been paid or received by such company if it had filed a separate federal income tax return, with limited exceptions.

Additionally, while the agreement described above governs the current and deferred income tax recorded in the income tax provision, the amount of cash that will be paid or received for U.S. federal income taxes may at times be different. The terms of this agreement are based on principles consistent with the allocation of income tax expense or benefit on a separate company basis, except that:

• The sections of the Internal Revenue Code relating to the Base Erosion Anti-abuse Tax ("BEAT") are applied, but only if the AIG consolidated group is subject to BEAT in the Consolidated Tax Liability,

•The impact of Deferred Intercompany Transactions (as defined in Treas. Reg. §1.1502-13(b)(1), if the “intercompany items” from such transaction, as defined in Treas. Reg. §1.1502-13(b)(2), have not been taken into account pursuant to the “matching rule” of Treas. Reg. §1.1502-13(c)), are excluded from current taxation, provided however, that the Company records the appropriate deferred tax asset and/or deferred tax liability related to the gain or loss and includes such gain or loss in its separate return tax liability in the subsequent tax year when the deferred tax liability or deferred tax asset becomes current; and

•Regarding the Corporate Alternative Minimum Tax (“CAMT”), the Company is considered an applicable reporting entity with tax allocation agreement exclusions. Therefore, the Company is not required to calculate or recognize CAMT in its current or deferred tax computations, and the Company (i) is excluded from charges for any portion of AIG’s CAMT, (ii) is not allocated any portion of AIG’s CAMT credit carryover (if any), and (iii) reasonably expects that AIG (and/or other members of the consolidated tax group) is meeting any CAMT obligations.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 21 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The Company has an enforceable right to recoup federal income taxes in the event of future net losses that it may incur or to recoup its net losses carried forward as an offset to future net income subject to federal income taxes.

Under the Tax Sharing Agreement, income tax liabilities related to uncertain tax positions and tax authority audit adjustments (“TAAAs”) shall remain with the Company for which the income tax liabilities relate. Furthermore, if and when such income tax liabilities are realized or determined to no longer be necessary, the responsibility for any additional income tax liabilities, benefits or rights to any refunds due, remains with the Company.

Deferred Taxes

The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance, if necessary, to reduce the deferred tax asset to an amount that is more likely than not to be realized (“adjusted gross deferred tax asset”). The evaluation of the recoverability of the deferred tax asset and the need for a valuation allowance requires management to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it would be to support a conclusion that a valuation allowance is not needed.

The Company's framework for assessing the recoverability of deferred tax assets requires it to consider all available evidence, including:

• the nature, frequency, and amount of cumulative financial reporting income and losses in recent years;

•the sustainability of recent operating profitability of our subsidiaries;

•the predictability of future operating profitability of the character necessary to realize the net deferred tax asset;

•the carryforward periods for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and

•prudent and feasible actions and tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax asset.

The adjusted gross deferred tax asset is then assessed for statutory admissibility. The reversing amount eligible for loss carryback or the amount expected to be realized in three years is admissible, subject to the defined surplus limitation. The remaining adjusted gross deferred tax asset can be admitted to the extent of offsetting deferred tax liabilities.

2.Accounting Adjustments to Statutory Basis Financial Statements

A. Change in Accounting Principles

In 2025, 2024 and 2023, there were no significant changes or modifications in the Statements of Statutory Accounting Principles ("SSAP").

In August, 2023 (with revisions in September 2024), the National Association of Insurance Commissioners (NAIC) Statutory Accounting Principles Working Group (SAPWG) adopted the provisions of the Principles-Based Bond Definition (PBBD) Project, which is a principles based methodology to classify bonds based upon the substance of the agreement. A bond is defined as “any security representing a creditor relationship, whereby there is a fixed schedule for one or more future payments, and which qualifies as either an issuer credit obligation or an asset-back security. Previously, the bond classification was based upon legal form.

Issuer credit obligations (“ICO”) are bonds, for which the primary source of repayment is the general credit worthiness of an operating entity or entities. An asset-backed security (“ABS”) is a bond issued by an entity (an ‘ABS Issuer’) created for the primary purpose of raising debt capital backed by financial assets or cash generating non-financial assets owned by the ABS Issuer, for which the primary source of repayment is derived from the cash flows associated with the underlying defined collateral rather than the cash flows of an operating entity. Securities that no longer meet the definition of an ICO or ABS, will be reported as other invested asset. ICO’s and ABS’s are accounted under

SSAP No. 26 Bonds and SSAP No. 43, Asset-Backed Securities, respectively. The accounting for other assets will be based upon the characteristics of the investment.

The adoption of the change in accounting principle is effective January 1, 2025; however, specific transition guidance was provided to account for the change prospectively. Reclassification of a bond into a new classification based upon the revised guidance will not result in any gain or loss and comparative disclosures are not required to be restated. The adoption of the provisions of the PBBD had $0 impact on the company.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 22 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

B. Adjustments to Surplus

During 2025, 2024 and 2023 the Company identified corrections that resulted in after-tax statutory adjustments to beginning capital and surplus of $(30), $6 and $80, respectively. In accordance with SSAP No. 3, Accounting Changes and Corrections of Errors (“SSAP 3”), the corrections of errors have been reported in the 2025, 2024 and 2023 statutory basis financial statements as adjustments to Unassigned surplus. The impact of the 2025 corrections would have decreased the 2024 pre-tax income by $30. Management has concluded that the effects of these errors on the previously issued financial statements were immaterial based on a quantitative and qualitative analysis. The impact to surplus, assets and liabilities as of January 1, 2025, 2024 and 2023 is presented in the following tables:


2025 Adjustments	Policyholders' Surplus			Total Admitted Assets			Total Liabilities
Balance at December 31, 2024		5,403			20,706			15,303
Adjustments to beginning Capital and Surplus:
Asset corrections		(30)			(30)			—

Income tax corrections		—			—			—
Total adjustments to beginning Capital and Surplus		(30)			(30)			—
Balance at January 1, 2025, as adjusted		$	5,373		$	20,676		$	15,303

An explanation for each of the adjustments for prior period corrections is described below:

Asset correction – The decrease in admitted assets is the result of the impairment of a certain equity method common stock.



2024 Adjustments	Policyholders' Surplus			Total Admitted Assets			Total Liabilities
Balance at December 31, 2023		$	5,508		$	21,420		$	15,912
Adjustments to beginning Capital and Surplus:
Asset corrections		27			27			—

Income tax corrections		(21)			(21)			—
Total adjustments to beginning Capital and Surplus		6			6			—
Balance at January 1, 2024, as adjusted		$	5,514		$	21,426		$	15,912

An explanation for each of the adjustments for prior period corrections is described below:

Asset correction – The increase in assets is primarily the result of foreign withholding tax on reinsurance activity not being appropriately pooled.

Income tax corrections – The decrease in the tax assets primarily the result of the tax effect of the corresponding change in asset corrections, as well as deferred validation adjustments related to investments.


2023 Adjustments	Policyholders' Surplus			Total Admitted Assets			Total Liabilities
Balance at December 31, 2022		$	5,437		$	21,451		$	16,014
Adjustments to beginning Capital and Surplus:
Asset corrections		54			54			—
Liability corrections		31			—			(31)
Income tax corrections		(5)			(6)			(1)
Total adjustments to beginning Capital and Surplus		80			48			(32)
Balance at January 1, 2023, as adjusted		$	5,517		$	21,499		$	15,982

An explanation for each of the adjustments for prior period corrections is described below:

Asset correction – The increase in admitted assets is primarily due to the understatement of the equity pickup of an affiliated entity.

Liability correction – The decrease in total liabilities is primarily due to (a) an overstatement of assumed Loss reserves and (b) an overstatement of Unearned premium reserve.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 23 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

Income tax corrections –The decrease in the tax assets and liabilities is primarily the result of (a) corrections to prior period balances for adjustments to the current and deferred tax assets and liabilities and (b) the tax effect of the corresponding change in asset realization and liability corrections.

3.Investments

A.Bond Investments

The reconciliations from carrying value to fair value of the Company's bond investments as of December 31, 2025 and 2024 are outlined in the tables below:


December 31, 2025	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Issuer Credit Obligations:	—
U.S. Government Obligations	$	533	$	16	$	(14)	$	534
Other U.S. Government Obligations	2		—		(1)		2
Non-U.S. Sovereign Jurisdiction	382		6		(34)		354
Municipal Bonds – General Obligation	395		6		(8)		393
Municipal Bonds – Special Revenue	552		9		(11)		550
Project Finance Bonds Issued by Operating Entities	60		—		(2)		58
Corporate Bonds	4,427		73		(99)		4,402
Mandatory Convertible Bonds	—		—		—		—
Single Entity Backed Obligations	109		1		(4)		106
Bonds Issued by Funds Representing Operating Entities	250		5		(1)		254
Mortgage Loans that Qualify as SVO-Identified Credit Tenant Loans	—		—		—		—
Other Issuer Credit Obligations	23		—		—		23
Bank Loans	438		4		—		441
Total Issuer Credit Obligations	$	7,171	$	120	$	(174)	$	7,117
Asset Backed Securities:
Agency Residential Mortgage-Backed Securities – Fully Guaranteed (Exempt from RBC)	$	12	$	—	$	—	$	11
Agency Commercial Mortgage-Backed Securities – Fully Guaranteed (Exempt from RBC)	40		1		—		42
Agency Residential Mortgage-Backed Securities – Not/Partially Guaranteed (Not Exempt from RBC)	1,483		21		(10)		1,494
Agency Commercial Mortgage-Backed Securities – Not/Partially Guaranteed (Not Exempt from RBC)	56		1		—		57
Non-Agency Residential Mortgage-Backed Securities	938		17		(7)		948
Non-Agency Commercial Mortgage-Backed Securities	1,100		19		(12)		1,107
Non-Agency – CLOs/CBOs/CDOs	1,116		4		—		1,120
Lease-Backed Securities – Practical Expedient	89		2		—		91
Other Financial Asset-Backed Securities	602		8		(3)		607
Other Financial Asset-Backed Securities – Not Self-Liquidating	40		—		—		40
Other Non-Financial Asset-Backed Securities	186		1		(4)		184


Total Asset Backed Securities	$	5,662	$	74	$	(36)	$	5,701
Total Bonds Available for Sale	$	12,833	$	194	$	(210)	$	12,818

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 24 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)


December 31, 2024	Carrying Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
U.S. governments	$	673	$	3	$	(17)	$	659
All other governments	814		4		(69)		749
States, territories and possessions	289		—		(10)		279
Political subdivisions of states, territories and possessions	232		1		(7)		226
Special revenue and special assessment obligations and all
non-guaranteed obligations of agencies and authorities and their political subdivisions	1,990		6		(69)		1,927
Parent, subsidiaries, and affiliates	—		—		—		—
Industrial and miscellaneous	7,834		49		(315)		7,568
Total	$	11,832	$	63	$	(487)	$	11,408

The carrying values and fair values of bonds at December 31, 2025, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties.


December 31, 2025	Carrying Value		Fair Value
Due in one year or less	$	523	$	525
Due after one year through five years	2,577		2,597
Due after five years through ten years	2,786		2,797
Due after ten years	1,285		1,198
Structured securities	5,662		5,701
Total	$	12,833	$	12,818

B.Mortgage Loan Investments

The minimum and maximum lending rates for new mortgage loans during 2025 were:


Category	Minimum Lending Rate %	Maximum Lending Rate %

Office	5.8%	5.8%

Multi-family	7.3%	8.9%

The maximum percentage of any one loan to the value of security at the time of the loan, exclusive of insured or guaranteed or purchase money mortgages was 70 percent. The Company's mortgage loan portfolio is current as to payments of principal and interest, for both periods presented. There were no significant amounts of nonperforming mortgages (defined as those loans where payment of contractual principal or interest is more than 90 days past due) during any of the periods presented. The Company did not have any advanced amounts for taxes or assessments.

The following table details an analysis of mortgage loans as of December 31, 2025 and 2024:

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 25 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)


			Residential					Commercial
	Farm			Insured		All Other			Insured		All Other		Mezzanine		Total
2025
Recorded Investment
Current	$	—		$	—	$	—		$	—	$	1,495	$	6	$	1,501
30 - 59 days past due	—			—		—			—		—		—		—
60 - 89 days past due	—			—		—			—		—		—		—
90 - 179 days past due	—			—		—			—		37		—		37
Greater than 180 days past due	—			—		—			—		—		—		—
Total	$	—		$	—	$	—		$	—	$	1,532	$	6	$	1,538
2024
Recorded Investment
Current	$	—		$	—	$	—		$	—	$	1,891	$	9	$	1,900
30 - 59 days past due	—			—		—			—		—		—		—
60 - 89 days past due	—			—		—			—		23		—		23
90 - 179 days past due	—			—		—			—		46		—		46
Greater than 180 days past due	—			—		—			—		—		—		—
Total	$	—		$	—	$	—		$	—	$	1,960	$	9	$	1,969

At December 31, 2025 and 2024, the Company held $108 and $161, respectively, in impaired mortgages with $45 and $56, respectively, of related allowances for credit losses. There were no impaired mortgage loans without a related allowance at both periods ended December 31, 2025 and 2024.

C.Asset-Backed and Structured Securities

The Company did not record any non-credit OTTI losses during 2025, 2024 and 2023 for Asset Backed Securities.

As of December 31, 2025, 2024 and 2023, the Company held Asset Backed Securities. for which it recognized $5, $0, and $10, respectively, of credit-related OTTI based on the present value of projected cash flows being less than the amortized cost of the securities.

The following table shows the aggregate unrealized losses and related fair value relating to those securities for which an OTTI has not been recognized as of the reporting date and the length of time that the securities have been in a continuous unrealized loss position:


Years Ended December 31,		2025			2024
Aggregate unrealized losses:
	Less than 12 Months		$	(4)		$	(35)
	12 Months or longer		(32)			(69)
Aggregate related fair value of securities with unrealized losses:
	Less than 12 Months		$	628		$	2,018
	12 Months or longer		656			678

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 26 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

D.Unrealized Losses

The fair value of the Company's bonds and stocks that had gross unrealized losses (where fair value is less than amortized cost) as of December 31, 2025 and 2024 are set forth in the tables below:


December 31, 2025	Less than 12 Months			12 Months or Longer			Total
Description of Securities		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses		Fair Value	Unrealized Losses
Bonds available for sale:
Issuer Credit Obligations		562	(10)		1,369	(164)		1,931	(174)
Asset Backed Securities		628	(4)		656	(32)		1,284	(36)
Total Bonds Available for Sale		1,190	(14)		2,025	(196)		3,215	(210)
Common Stock - Unaffliated		—	—		3	(2)		3	(2)
Total common stocks		—	—		3	(2)		3	(2)
Preferred stocks		1	—		—	—		1	—
Total Preferred stocks		1	—		—	—		1	—
Total bonds and stocks		1,191	(14)		2,028	(198)		3,219	(212)



December 31, 2024	Less than 12 Months					12 Months or Longer					Total
Description of Securities		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. governments		$	328	$	(3)		$	35	$	(14)		$	363	$	(17)
All other governments		321		(22)			386		(103)			707		(125)
States, territories and possessions		197		(3)			55		(7)			252		(10)
Political subdivisions of states, territories and possessions		82		(2)			46		(5)			128		(7)
Special revenue and special assessment obligations and all non-guaranteed obligations of agencies and authorities and their political subdivisions		1,239		(26)			383		(43)			1,622		(69)
Industrial and miscellaneous		2,822		(155)			1,854		(297)			4,676		(452)
Total bonds		$	4,989	$	(211)		$	2,759	$	(469)		$	7,748	$	(680)
Non-affiliated		5		(44)			—		—			5		(44)
Total common stocks		$	5	$	(44)		$	—	$	—		$	5	$	(44)
Preferred stocks		—		—			—		—			—		—
Total stocks		$	5	$	(44)		$	—	$	—		$	5	$	(44)
Total bonds and stocks		$	4,994	$	(255)		$	2,759	$	(469)		$	7,753	$	(724)

E.Realized Gains (Losses)

Proceeds from sales and associated gross realized gains (losses) for the years ended December 31, 2025, 2024 and 2023 were as follows:


Years ended December 31,	2025					2024					2023
		Bonds		Equity Securities			Bonds		Equity Securities			Bonds		Equity Securities
Proceeds from sales		$	4,121	$	—		$	4,430	$	8		$	3,271	$	194
Gross realized gains		16		—			21		2			17		12
Gross realized losses		(131)		—			(112)		(3)			(170)		(2)

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 27 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

F.Derivative Financial Instruments

The Company holds currency derivatives and credit default swaps. Derivative products include currency swaps, currency forwards and default swaps. The Company's currency derivative were entered into to manage risk from currency exchange rate fluctuations, and the impact of such fluctuations to surplus and cash flows on investments or loss reserves. While not accounted for under hedge accounting, the currency derivatives are economic hedges of the Company's exposure to fluctuations in the value of receipts on certain investments held by the Company denominated in foreign currencies (primarily GBP and EUR), or of the Company's exposure to fluctuations in recorded amounts of loss reserves denominated in foreign currencies (primarily JPY). The Company's credit default swaps were entered into to manage credit risk exposure to reinsurance counterparties.

Market Risk

The Company is exposed under these types of contracts to fluctuations in value of the swaps and forwards and variability of cash flows due to changes in interest rates and exchange rates.

Credit Risk

The current credit exposure of the Company's derivative contracts is limited to the fair value of such contracts. Credit risk is managed by entering into transactions with creditworthy counterparties and obtaining collateral.

Cash Requirements

The Company is subject to collateral requirements on some of the Company's derivative contracts. Additionally, the Company is required to make currency exchanges on fixed dates and fixed amounts or fixed exchange rates, or make a payment in the amount of foreign currency physically received on certain foreign denominated investments. For credit default swaps, the Company is required to make premium payments on a fixed payment date.

The Company has determined that the currency derivatives do not qualify for hedge accounting under the criteria set forth in SSAP No. 86, Accounting for Derivative Instruments and Hedging Transactions ("SSAP 86"). As a result, the Company’s currency rate contracts are accounted for at fair value and the changes in fair value are recorded as unrealized gains (losses) within the Statements of Operations and Changes in Capital and Surplus until the contract expires, paid down or is redeemed early. In the event a contract is fully redeemed before its expiration, the related unrealized amounts will be recognized in Net realized capital gains (losses). Furthermore, if the contract has periodic payments or fully matures, any related unrealized amounts are recognized in Net investment income earned.

The Company did not apply hedge accounting to any of its derivatives for any period in these financial statements. The following tables summarize the outstanding notional amounts, the fair values and the realized and unrealized gains or losses of the derivative financial instruments held by the Company for the years ended December 31, 2025 and 2024.


	December 31, 2025					Years Ended December 31, 2025
Derivative Financial Instrument		Outstanding Notional Amount		Fair Value			Realized Capital Gains / (Losses)		Unrealized Capital Gains / (Losses)
Swaps		$	178	$	9		$	1	$	(32)
Forwards		897		(8)			—		(32)
Total		$	1,075	$	1		$	1	$	(64)

	December 31, 2024					Years Ended December 31, 2024
Derivative Financial Instrument		Outstanding Notional Amount		Fair Value			Realized Capital Gains / (Losses)		Unrealized Capital Gains / (Losses)
Swaps		$	309	$	40		$	10	$	1
Forwards		1,057		24			(7)		39
Total		$	1,366	$	64		$	3	$	40

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 28 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

G.Other Invested Assets


The following table shows the components of the company's other invested assets.
	2025	2024
Investments in joint ventures, partnerships and limited liability companies	1,132	1,279
Other Investments	98	262
Non-Admitted assets	(2)	—
Total other invested assets	1,228	1,541

The Company holds certain alternative investments, including private equity funds and hedge funds, using NAV as a practical expedient. Such investments have individually varying investment strategies and a variety of redemption terms and conditions. The Company believes that using NAV as a practical expedient for these investments is a fair and close approximation of the investment’s liquidation value. In Q4 2025, the Company entered into an agreement to exchange certain alternative investments for an interest in a fund investment with a third-party asset manager CVC Capital Partners plc (CVC) in 2026. As a result of this agreement, certain alternative investments are recorded by the Company at the exchange value in the agreement rather than NAV.

During 2025, 2024 and 2023, the Company recorded OTTI losses on investments in joint ventures and partnerships of $37, $0, and $5, respectively.

H.Investment Income

Investment income due and accrued over 90 days past due of $0 and $0 was non-admitted in December 31, 2025 and December 31, 2024, respectively. Investment expenses of $42, $46 and $46 were included in Net investment income earned for the years ended December 31, 2025, 2024 and 2023, respectively.

The gross, nonadmitted assets and admitted amounts for interest income due and accrued were as follows:


Interest Income Due and Accrued	Amount
Gross		$	120
Nonadmitted		—
Admitted		$	120

I. Restricted Assets

The Company had securities deposited with regulatory authorities, as required by law, with a carrying value of $5,849 and $4,806 as of December 31, 2025 and 2024, respectively.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 29 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

4.Fair Value of Financial Instruments

The following tables present information about financial instruments carried at fair value on a recurring basis and indicate the level of the fair value measurement as of December 31, 2025 and 2024.


December 31, 2025	Level 1		Level 2		Level 3		Total
Bonds available for sale:
Issuer Credit Obligations	$	—	$	364	$	6	$	370
Asset Backed Securities	—		—		8		8
Total Bonds Available for Sale	$	—	$	364	$	14	$	378
Cash and Cash Equivalents	—		—		—		—
Common stocks	—		3		6		10
Preferred stock	—		1		—		1
Mortgage loans	—		—		—		—

Derivative assets	—		15		—		15
Derivative liabilities	—		(13)		—		(13)
Total	$	—	$	370	$	20	$	390



December 31, 2024	Level 1		Level 2		Level 3		Total
Bonds	$	—	$	424	$	50	$	474
Common stocks	—		4		114		118
Preferred stock	—		—		1		1
Mutual funds	—		—		—		—
Derivative assets	—		73		—		73
Derivative liabilities	—		(9)		—		(9)
Total	$	—	$	492	$	165	$	657

A.Fair Value Measurements in Level 3 of the Fair Value Hierarchy

The following tables show the balance and activity of financial instruments classified as level 3 in the fair value hierarchy for the years ended December 31, 2025 and 2024.


	Beginning Balance at January 1, 2025		Transfers into Level 3		Transfers out of Level 3		Total Gains (Losses) included in Net Income		Total Gains (Losses) included in Surplus		Purchases, Sales, Issuances, Settlements, Net		Balance at December 31, 2025
Bonds
Issuer Credit Obligations	6		33		(24)		(2)		(2)		(6)		6
Asset Backed Securities	44		12		(45)		—		(4)		1		8
Common stocks	114		3		(111)		—		(3)		3		6
Mutual funds	—		—		—		—		—		—		—
Preferred Stocks	1		—		(1)		—		—		—		—
Derivative	—		—		—		—		—		—		—
Total	$	165	$	48	$	(181)	$	(2)	$	(9)	$	(2)	$	19

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 30 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)


	Beginning Balance at January 1, 2024		Transfers into Level 3		Transfers out of Level 3		Total Gains (Losses) included in Net Income		Total Gains (Losses) included in Surplus		Purchases, Sales, Issuances, Settlements, Net		Balance at December 31, 2024
Bonds	$	65	$	10	$	(27)	$	(6)	$	9	$	(1)	$	50
Common stocks	156		4		(50)		(2)		—		6		114
Mutual funds	7		—		(7)		—		—		—		—
Preferred Stocks	10		2		(9)		(3)		1		—		1
Derivative	—		(1)				(1)		1		1		—
Total	$	238	$	15	$	(93)	$	(12)	$	11	$	6	$	165

Assets are transferred out of Level 3 when circumstances change such that significant inputs can be corroborated with market observable data or when the asset is no longer carried at fair value. This may be due to significant increase in market activity for the asset, a specific event, one or more significant inputs becoming observable or when a long-term interest rate significant to a valuation becomes short term and thus observable. Transfers out of Level 3 can also occur due to favorable credit migration resulting in a higher NAIC designation. Securities are generally transferred into Level 3 due to a decrease in market transparency, downward credit migration and an overall increase in price disparity for certain individual security types. The Company’s policy is to recognize transfers in and out at the end of the reporting period, consistent with the dates of the determination of fair value.

The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to us, such as data from independent third-party valuation service providers and from internal valuation models. Because input information from third-parties with respect to certain Level 3 instruments may not be reasonably available to the Company, balances shown below may not equal total amounts reported for such Level 3 assets.

Fair Value at December 31, 2025

Valuation Technique

Unobservable Input

Range (Weighted Average)

Assets:

Asset Backed Securities

Discounted Cashflow

Yield

0.07% - 0.07% (0.07%)

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 31 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

B.Fair Value of all Financial Instruments

The table below details the fair value of all financial instruments except for those accounted for under the equity method as of December 31, 2025 and 2024:


December 31, 2025	Aggregate Fair Value			Admitted Assets			Level 1			Level 2			Level 3			Not Practicable (Carry Value)
Bonds available for sale:
Issuer Credit Obligations		$	7,117		$	7,171		$	10		$	6,904		$	203		$	—
Asset Backed Securities		5,701			5,662			—			5,195			506			—
Total Bonds Available for Sale		$	12,818		$	12,833		$	10		$	12,099		$	709		$	—
Cash and cash equivalents		643			643			643			—			—			—
Common stocks		$	119		$	119		$	—		$	8		$	111		$	—
Preferred stocks		1			1			—			1			—			—
Mortgage loans		1,495			1,538			—			—			1,495			—
Mutual funds		—			—			—			—			—			—
Derivative assets		15			15			—			15			—			—
Derivative liabilities		(13)			(13)			—			(13)			—			—


Total	$	15,078		$	15,136		$	653		$	12,110		$	2,315		$	—



December 31, 2024	Aggregate Fair Value			Admitted Assets			Level 1			Level 2			Level 3			Not Practicable (Carry Value)
Bonds		$	11,408		$	11,832		$	6		$	10,950		$	453		$	—
Cash equivalents and short term investments		396			396			393			3			—			—
Common stocks		178			178			—			4			174			—
Derivative assets		73			73			—			73			—			—
Derivative liabilities		(9)			(9)			—			(9)			—			—
Mortgage loans		1,867			1,969			—			—			1,867			—
Mutual funds		—			—			—			—			—			—
Preferred stocks		1			1			—			—			1			—
Total		$	13,914		$	14,440		$	399		$	11,021		$	2,495		$	—

5.Reserves for Losses and Loss Adjustment Expenses

A roll forward of the Company's net reserves for losses and LAE as of December 31, 2025, 2024 and 2023, is set forth in the table below:


December 31,	2025			2024			2023
Reserves for losses and LAE, end of prior year		$	8,513		$	8,343		$	8,598

Incurred losses and LAE related to:
Current accident year		3,024			2,872			2,911
Prior accident year		(42)			(28)			58
Total incurred losses and LAE		$	2,982		$	2,844		$	2,969
Paid losses and LAE related to:
Current accident year		(687)			(676)			(950)
Prior accident year		(2,162)			(1,998)			(2,274)
Total paid losses and LAE		$	(2,849)		$	(2,674)		$	(3,224)
Reserves for losses and LAE, end of current year		$	8,646		$	8,513		$	8,343

During 2025, after applying the impact of the ADC, the Company reported net favorable incurred loss and LAE of approximately $42. This favorable incurred includes $73 unfavorable due to changes in discount as a result of interest rate fluctuation. This results in a favorable prior year development (“PYD”) of $115.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 32 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The favorable PYD was mostly driven by favorable development in Workers Compensation, Special Property, Commercial Multi-Peril and Other Liability Claims Made, partially offset by unfavorable development in Other Liability Occurrence and Commercial Auto Liability.

During 2024, after applying the impact of the ADC, the Company reported net favorable incurred loss and LAE of approximately $28. This favorable incurred includes $90 unfavorable due to changes in discount as a result of interest rate fluctuation. This results in a favorable prior year development (“PYD”) of $118.

The favorable PYD was mostly driven by favorable development in Workers Compensation, Other Liability Claims Made and Special Property, partially offset by adverse development in Other Liability Occurrence.

During 2023, after applying the impact of the ADC, the Company reported net unfavorable incurred loss and LAE of approximately $58. This unfavorable incurred includes $89 unfavorable due to changes in discount as a result of interest rate fluctuation. This results in a favorable prior year development (“PYD”) of $31.

The favorable PYD was mostly driven by favorable development in Workers Compensation and Personal Insurance, partially offset by adverse development in Other Liability Claims Made and Special Property.

The Company’s reserves for losses and LAE have been reduced for anticipated salvage and subrogation of $212, $222 and $220 for the years ended December 31, 2025, 2024 and 2023, respectively. The Company paid $4, $8 and $9 in the reporting period to settle 68, 74 and 86 claims related to extra contractual obligations or bad faith claims stemming from lawsuits for the years ended December 31, 2025, 2024 and 2023, respectively.

A.Asbestos/Environmental Reserves

The Company has indemnity claims asserting injuries from toxic waste, hazardous substances, asbestos and other environmental pollutants and alleged damages to cover the clean-up costs of hazardous waste dump sites (environmental claims). Estimation of environmental claims loss reserves is a difficult process, as these claims, which emanate from policies written in 1986 and prior years, cannot be estimated by conventional reserving techniques. Environmental claims development is affected by factors such as inconsistent court resolutions, the broadening of the intent of policies and scope of coverage and increasing number of new claims. The Company and other industry members have and will continue to litigate the broadening judicial interpretation of policy coverage and the liability issues. If the courts continue in the future to expand the intent of the policies and the scope of the coverage, as they have in the past, additional liabilities would emerge for amounts in excess of reserves held. This emergence cannot now be reasonably estimated, but could have a material impact on the Company's future operating results or financial position.

The Company has exposure to asbestos and/or environmental losses and LAE costs arising from pre-1986 general liability, product liability, commercial multi-peril and excess liability insurance or reinsurance policies as noted below:


	Asbestos Losses										Environmental Losses
December 31,		2025			2024			2023				2025			2024			2023
Direct
Loss and LAE reserves, beginning of year			$	553		$	572		$	587			$	210		$	224		$	240
Incurred losses and LAE			53			59			32				(1)			—			—
Calendar year paid losses and LAE			(51)			(78)			(47)				(15)			(14)			(16)
Loss and LAE Reserves, end of year			$	555		$	553		$	572			$	194		$	210		$	224

Assumed reinsurance
Loss and LAE reserves, beginning of year			$	237		$	255		$	266			$	16		$	17		$	16
Incurred losses and LAE			2			(9)			(4)				—			—			—
Calendar year paid losses and LAE			(4)			(9)			(7)				—			(1)			1
Loss and LAE Reserves, end of year			$	235		$	237		$	255			$	16		$	16		$	17

Net of reinsurance
Loss and LAE reserves, beginning of year			$	1		$	1		$	1			$	—		$	—		$	—
Incurred losses and LAE			—			—			—				—			—			—
Calendar year paid losses and LAE			—			—			—				—			—			—
Loss and LAE Reserves, end of year			$	1		$	1		$	1			$	—		$	—		$	—

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 33 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The Company estimates the full impact of the asbestos and environmental exposure by establishing case basis reserves on all known losses and establishes bulk reserves for IBNR losses and LAE based on management’s judgment after reviewing all the available loss, exposure, and other information.

Included in the above table are loss and LAE - IBNR and bulk reserves arising from pre-1986 general liability, product liability, commercial multi-peril and excess liability insurance or reinsurance policies as noted below:


Asbestos	Loss Reserves							LAE Reserves
December 31,		2025			2024				2025			2024
Direct basis:			$	212		$	234			$	38		$	36
Assumed reinsurance basis:			89			90				6			7
Net of ceded reinsurance basis:			—			—				—			—


Environmental	Loss Reserves							LAE Reserves
December 31,		2025			2024				2025			2024
Direct basis:			$	81		$	82			$	35		$	38
Assumed reinsurance basis:			4			9				2			4
Net of ceded reinsurance basis:			—			—				—			—

B.Discounting of Liabilities for Unpaid Losses or Unpaid Loss Adjustment Expenses

The Company discounts its workers’ compensation (both tabular and non-tabular) reserves.

The Company's Tabular discount is obtained from the Company's Lifetime Benefit Calculator ("LBC"), which is a tool used by the claims handlers to calculate case reserves. The LBC enables the Company to determine its tabular case reserve discount using a given interest rate curve. To be consistent with the non-tabular discount we used a 4.5% interest rate, which is subject to regulator approval, when determining the tabular case reserve discount as of December 31, 2025 and 2024, respectively. The calculation of the Company's tabular discount was based upon the mortality table used in the 2007 US Decennial Life Table, and applying a weighted average discount rate of 3.70 percent interest rate as of December 31, 2023. Only case basis reserves are subject to tabular discounting. The December 31, 2025 and 2024 liabilities include $955 and $902 of such discounted reserves, respectively.

Tabular Reserve Discount

The table below presents the amount of tabular discount applied to the Company’s reserves as of December 31, 2025, 2024 and 2023:


Lines of Business	2025			2024			2023
Workers' Compensation
Case Reserves		$	48		$	37		$	101

As of December 31, 2025, 2024 and 2023, the tabular case reserve discount is presented net of the ceded discount related to the ADC of $54, $55 and $100, respectively.

Non-Tabular Discount

The non-tabular discount rate utilized by the Company is a variable discount rate determined using risk-free rates based on the U.S. Treasury forward yield curve plus a liquidity margin, applicable to IBNR and certain case reserves.

The table below presents the amount of non-tabular discount applied to the Company’s reserves as of December 31, 2025, 2024 and 2023:


Lines of Business	2025			2024			2023
Workers' Compensation
Case Reserves		$	212		$	206		$	163
IBNR		221			250			253

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 34 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

As of December 31, 2025, the non-tabular case and IBNR reserve discount is presented net of the ceded discount related to the ADC of $125 and $199, respectively. As of December 31, 2024, the non-tabular case and IBNR reserve discount is presented net of the ceded discount related to the ADC of $149 and $183, respectively. As of December 31, 2023, the non-tabular case and IBNR reserve discount is presented net of the ceded discount related to the ADC of $122 and $249 respectively.

6.Related Party Transactions

A.Combined Pooling Agreement

As described in Note 1, effective January 1, 2025, the Combined pooling Agreement was amended and restated, with Western World, Stratford and Tudor ("Western World Insurers") becoming zero percent participants in the Combined Pool. The Company's' participation in the pool remained the same. There were no changes to surplus as a result of the changes to the Combined Pooling Agreement. Significant portions of the balances below were previously ceded from the Western World Insurers to the Combined Pool via the now commuted quota share (refer to Note 6B).

The following table shows the changes in Assets, Liabilities and the Statement of Income for the Combined Pool as a result of the 2025 Repooling

Transaction.


Assets:	Amount
Agents' balances or uncollected premiums	79
Deferred premiums, agents' balances	2
Amounts recoverable from reinsurers	82

Other insurance assets	1
Total Assets	$	164

Liabilities:
Reserve for losses and loss adjustment expenses	262
Unearned premium reserves (net)	88
Ceded reinsurance premiums payable	109
Provision for reinsurance	2
Other insurance liabilities	35
Total Liabilities	$	496

Statement of Operations and Changes in Surplus
Net premiums written	$	350
Change in unearned premium reserves	$	(88)
Premiums earned	$	262

Losses and loss adjustment expenses incurred	$	262
Net underwriting gain (loss)	$	—

Net Impact Corresponding to Consideration Received / (Paid)	$	332

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 35 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

B.Significant Transactions

The following table summarizes transactions (excluding reinsurance and cost allocation transactions) that occurred during 2025, 2024 and 2023 between the Company and affiliated companies in which the value exceeded one-half of one percent of the Company's admitted assets as of December 31, 2025, 2024 and 2023:

2025

Assets Received by

Assets Transferred by

the Company

Date of Transaction

Explanation of Transaction

Name of Affiliate

Statement Value

Description

Statement Value

Description

Various

Tax Payment

AIG

—

196

Cash

2024

Assets Received by

Assets Transferred by

the Company

Date of Transaction

Explanation of Transaction

Name of Affiliate

Statement Value

Description

Statement Value

Description

Various

Tax Payment

AIG

—

147

Cash

For a listing of Intercompany Dividends to parent, please see note 9A.

Western-World Commutation

Effective January 1, 2025, the Western World Insurers entered into a commutation agreement that transferred the business previously ceded by the Western World Insurers to NUFIC back to the Balance sheet of the Western World Insurers. Net unearned premium reserves of $250 and Net loss reserves of $667 were transferred in the transaction. Immediately after the commutation the Western World Insurers joined the Combined Pool.

Blackboard Commutation

Effective January 1, 2024, Glatfelter and Marbleshore ("Blackboard Insurers") entered into a commutation agreement that transferred the

business previously ceded by the Blackboard Insurers to the Company back to the Balance Sheet of the Blackboard Insurers. Net loss reserve of

$102 were transferred in the transaction. Immediately after the commutation the Blackboard Insurers joined the Combined Pool.

C.Amounts Due to or from Related Parties

At December 31, 2025 and 2024, the Company reported the following receivables/payables balances from/to its Ultimate Parent, subsidiaries and affiliates (excluding reinsurance transactions). Intercompany agreements have defined settlement terms and related receivables are reported as nonadmitted if balances due remain outstanding more than ninety days past the due date as specified in the agreement.


December 31,	2025			2024
Balances with member pool companies		$	82		$	315
Balances with other affiliates		360			235
Receivable from parent, subsidiaries and affiliates		$	442		$	550
Balances with member pool companies		160			144
Balances with other affiliates		131			467
Payable to parent, subsidiaries and affiliates		$	291		$	611

Current federal and foreign taxes payable under the Tax Sharing Agreement at December 31, 2025 and 2024 were $56 and $21, respectively.

AIG uses centralized cash management in which AIG controls all cash transactions and maintains certain cash accounts on behalf of its subsidiaries, including National Union. The balance included in intercompany receivable is $0 and $18 at December 31, 2025 and 2024, respectively.

The Company did not change its methods of establishing terms regarding any transactions with its affiliates during the years ended December 31, 2025 or 2024.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 36 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

D.Guarantees or Contingencies for Related Parties

The Company has issued guarantees whereby it unconditionally and irrevocably guarantees all present and future obligations and liabilities arising from the policies of insurance issued by certain insurers who, as of the guarantee issue date, were members of the AIG holding company group. The guarantees were provided in order to secure or maintain the guaranteed companies’ rating status issued by certain rating agencies, as disclosed in Note 10.

E.Management, Service Contract and Cost Sharing Arrangements

As an affiliated company of AIG, the Company utilizes centralized services from AIG and its affiliates. The Company is allocated a charge for these services, based on the amount of incremental expense associated with operating the Company as a separate legal entity. The amount of expense allocated to the Company each period was determined based on an analysis of services provided to the Company.

The following table summarizes fees incurred related to affiliates that exceeded one-half of one percent of the Company’s admitted assets during 2025, 2024 and 2023:


Affiliates	2025			2024			2023
AIG Claims, Inc.		$	143		$	144		$	147
AIG PC Global Services, Inc.		204			132			180
Total		$	347		$	276		$	327

F.Borrowed Money

The Company (among other affiliates) is a borrower under a Loan Agreement, with AIG, as lender, pursuant to which the Company may borrow funds from AIG from time to time (the “Loan Facility”). The aggregate amount of all loans that may be outstanding under the Loan Facility at a given time is $500. As of December 31, 2025 and 2024, the Company had no outstanding liability pursuant to this Loan Facility. Significant debt terms and covenants include the following:

•The Company must preserve and maintain its legal existence while maintaining all rights, privileges and franchises necessary to the normal conduct of its business;

•The Company must take, or cause to be taken, all other actions reasonably necessary or desirable to preserve and defend the rights of the Lender to payment hereunder, and to assure to the Lender the benefits hereof; and

•The Company must not merge with or into or consolidate with any other person, sell, transfer or dispose of all or substantially all of its assets or undergo any change in the control of its voting stock unless (a) such merger or consolidation is with or into a wholly-owned subsidiary of Lender, (b) such sale or transfer is to a wholly-owned subsidiary of the Lender or (c) The Company receives the prior written authorization from the Lender.

There have been no violations of the terms and covenants associated with the debt issuance.

Refer to Note 11E regarding funds borrowed from FHLB.

7.Reinsurance

In the ordinary course of business, the Company may use both treaty and facultative reinsurance to minimize its net loss exposure to a) any single catastrophic loss event; b) an accumulation of losses from a number of smaller events; or c) provide greater risk diversification. Based on the terms of the reinsurance contracts, a portion of expected IBNR losses will be recoverable in accordance with terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Ceded amounts related to paid and unpaid losses and loss expenses with respect to these reinsurance agreements are generally substantially collateralized. The Company remains liable to the extent that the reinsurers do not meet their obligation under the reinsurance contracts after any collateral is exhausted, and as such, the financial condition of the reinsurers is regularly evaluated and monitored for concentration of credit risk. In addition, the Company assumes reinsurance from other insurance companies.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 37 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The following table presents direct, assumed reinsurance and ceded reinsurance written and earned premiums for the years ended December 31, 2025, 2024 and 2023:


Years Ended December 31,	2025						2024						2023
	Written			Earned			Written			Earned			Written			Earned
Direct premiums		$	6,441		$	6,317		$	6,410		$	6,285		$	6,030		$	5,974
Reinsurance premiums assumed:
Affiliates		15,525			15,887			15,384			15,210			15,405			15,240
Non-affiliates		502			476			414			386			410			470
Gross Premiums		$	22,468		$	22,680		$	22,208		$	21,881		$	21,845		$	21,684

Reinsurance premiums ceded:
Affiliates		14,793			15,058			14,738			14,575			14,500			14,223
Non-affiliates		2,810			2,749			2,805			2,797			2,756			2,838
Net Premiums		$	4,865	$	$	4,873		$	4,665	$	$	4,509	$	$	4,589	$	$	4,623

As of December 31, 2025 and 2024, and for the years then ended, the Company's unearned premium reserves, paid losses and LAE, and reserves for losses and LAE (including IBNR), have been reduced for reinsurance ceded as follows:


	Unearned Premium Reserves			Paid Losses and LAE			Reserves for Losses and LAE
December 31, 2025:
Affiliates		$	7,063		$	84		$	32,549
Non-affiliates		1,045			685			7,053
Total		$	8,108		$	769		$	39,602

December 31, 2024:
Affiliates		$	7,267		$	91		$	33,241
Non-affiliates		984			646			7,350
Total		$	8,251		$	737		$	40,591

A.Reinsurance Return Commission

The maximum amount of return commission which would have been due to reinsurers if all of the Company's reinsurance had been cancelled as of December 31, 2025 and 2024 with the return of the unearned premium reserve is as follows:


	Assumed Reinsurance				Ceded Reinsurance				Net
	Premium Reserve		Commission Equity		Premium Reserve		Commission Equity		Premium Reserve		Commission Equity
December 31, 2025
Affiliates	$	7,875	$	1,506	$	7,063	$	1,276	$	812	$	230
All Other		234		45		1,045		189		(811)		(144)
Total	$	8,109	$	1,551	$	8,108	$	1,465	$	1	$	86

December 31, 2024
Affiliates	$	8,160	$	1,851	$	7,267	$	1,446	$	893	$	405
All Other		207		47		984		196		(777)		(149)
Total	$	8,367	$	1,898	$	8,251	$	1,642	$	116	$	256

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 38 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

B.Unsecured Reinsurance Recoverable

The aggregate unsecured reinsurance balances (comprising recoverables for paid and unpaid losses and LAE and unearned premium reserves) in excess of three percent of policyholders’ surplus at December 31, 2025 and 2024 with respect to an individual reinsurer, and each of such reinsurer’s related group members having an unsecured aggregate reinsurance balance with the Company, are as follows:


Reinsurer	2025		2024
Affiliates:
Combined Pool*	$	38,910	$	39,648
Eaglestone	472		486
Other affiliates	231		351
Total affiliates	$	39,613	$	40,485
Berkshire Hathaway Group	166		155
Swiss Reinsurance Group	307		327
Munich Reinsurance Group	264		329
Hannover Re Group	348		333
Everest Re Group	374		357
Lloyds of London**	202		157

Total Non-affiliates	$	1,661	$	1,658
Total affiliates and non-affiliates	$	41,274	$	42,143

*Includes intercompany pooling impact of $7,056 related to Unearned Premium Reserve, $31,869, related to Reserves for Losses and LAE and $25 related to Paid losses and LAE as of and for the year ended December 31, 2025, and $7,142, $32,507, and $25, respectively, as for the year ended December 31, 2024.

** Lloyds of London was below 3% threshold for 2024

C.Reinsurance Recoverable in Dispute

At December 31, 2025 and 2024, the aggregate of all disputed items did not exceed ten percent of capital and surplus and there were no amounts in dispute for any single reinsurer that exceeded five percent of capital and surplus. The total reinsurance recoverable balances in dispute are $62 and $39 as of December 31, 2025 and 2024, respectively.

D.Retroactive Reinsurance

On January 20, 2017, the Combined Pool entered into an adverse development reinsurance agreement with NICO under which the Combined Pool ceded to NICO eighty percent of its reserve risk above an attachment point on substantially all of its U.S. Commercial long-tail exposures for accident years 2015 and prior. Under this agreement, the Combined Pool ceded to NICO eighty percent of net paid losses on subject business on or after January 1, 2016 in excess of $25,000 of net paid losses, up to an aggregate limit of $25,000. At NICO’s 80 percent share, NICO’s limit of liability under the contract is $20,000. The Combined Pool paid consideration of approximately $10,188 in February 2017, including interest at 4 percent per annum from January 1, 2016 through date of payment. National Union’s share of the consideration paid was $3,566. NICO placed the consideration received into a collateral trust account as security for NICO’s claim payment obligations, and Berkshire Hathaway Inc. has provided a parental guarantee to secure NICO’s obligations under the agreement.

National Union accounted for this transaction as prospective reinsurance, except that the surplus gain associated with the ADC has been reported in a segregated surplus account and does not form a part of the Company’s Unassigned surplus.

The total surplus gain recognized by the Combined Pool as of December 31, 2025, 2024 and 2023 was $2,117, $1,971, and $1,514, respectively. National Union’s share of this gain as of December 31, 2025 , 2024 and 2023 was $676, $630, and $446, respectively. The surplus gain is presented as segregated surplus and subject to the applicable dividend restrictions. This amount must be restricted in surplus until such time as the actual retroactive reinsurance recovered from NICO exceeds the consideration paid for the cession.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 39 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

E.Reinsurance Agreements Qualifying for Reinsurer Aggregation

In 2011, the Combined Pool companies entered into a loss portfolio transfer reinsurance agreement with Eaglestone, an affiliate, which provides coverage up to a limit of $5,000 for the Pool’s net asbestos exposures. Effective the same date, Eaglestone retroceded the majority of this exposure to NICO, an unaffiliated company. NICO provides coverage up to a limit of $3,500 for subject business covered under the agreement. NICO administers claims and pursues amounts recoverable from the Combined Pool companies’ reinsurers with respect to paid losses and loss adjustment expenses. To the extent that the prior reinsurers pay, the amounts are collected and retained by NICO. NICO maintains funds in trust for the benefit of Eaglestone under the contract; as of December 31, 2025 and 2024 the amount in trust was $1,814 and $1,660 , respectively. The amount of the unexhausted limit under the NICO agreement as of December 31, 2025 and 2024 was $797 and $906, respectively. The Company has accounted for its cession to Eaglestone as prospective reinsurance.

8.Income Taxes

U.S. Tax Law Changes

On July 4, 2025, new U.S. tax legislation was signed into law (known as the “One Big Beautiful Bill Act” or “OBBB Act”) which, among other

provisions, makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of

2025. The OBBB Act does not have a material impact to the Company.

The components of the Company's net deferred tax assets/liabilities ("DTA"/"DTL") as of December 31, 2025 and 2024 are as follows:


	12/31/2025									12/31/2024									Change
	Ordinary			Capital			Total			Ordinary			Capital			Total			Ordinary			Capital			Total

Gross DTA		$	386		$	174		$	560		$	389		$	198		$	587		$	(3)		$	(24)		$	(27)
Statutory Valuation Allowance		—			3			3			—			28			28			—			(25)			(25)
Adjusted Gross DTA		386			171			557			389			170			559			(3)			1			(2)
Nonadmitted DTA		46			—			46			16			—			16			30			—			30
Subtotal Admitted DTA		340			171			511			373			170			543			(33)			1			(32)
DTL		102			188			290			157			171			328			(55)			17			(38)
Net Admitted DTA (DTL)		$	238		$	(17)		$	221		$	216		$	(1)		$	215		$	22		$	(16)		$	6

At December 31, 2025, the Company recorded gross deferred assets ("DTA") of $560. A valuation allowance was established on deferred tax assets net of liabilities of $3 as it is management's belief that certain assets will not be realized in the foreseeable future. Tax planning strategies had no impact on the determination of the net admitted DTA.

The following table shows the summary of the calculation for the net admitted DTA as of December 31, 2025 and 2024:


	12/31/2025									12/31/2024									Change
	Ordinary			Capital			Total			Ordinary			Capital			Total			Ordinary			Capital			Total

Carried back losses that reverse in subsequent three calendar years		$	200		$	—		$	200		$	134		$	—		$	134		$	66		$	—		$	66
Adjusted gross DTAs realizable within 36 months or 15 percent of statutory surplus (the lesser of 1 and 2 below)		22			—			22			82			—			82			(60)			—			(60)
1. Adjusted gross DTAs realizable within 36 months		22			—			22			82			—			82			(60)			—			(60)
2. 15 percent of statutory surplus		NA			NA			839			NA			NA			778			NA			NA			61
Adjusted gross DTAs that can be offset against DTLs		118			171			289			157			170			327			(39)			1			(38)
Total DTA admitted as the result of application of SSAP 101		$	340		$	171		$	511		$	373		$	170		$	543		$	(33)		$	1		$	(32)


	2025			2024
Ratio percentage used to determine recovery period and threshold limitation amount		419%			381		%
Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in (2) above		$	5,596		$	5,188

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 40 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The following table shows the components of the current income tax expense (benefit) for the periods listed:


For the years ended December 31,	2025			2024			Change
Federal income tax		$	251		$	103		$	148
Foreign income tax		15			9			6
Subtotal		$	266		$	112		$	154
Federal income tax on net capital gains		(29)			21			(50)
Federal and foreign income taxes incurred		$	237		$	133		$	104

The following table shows the components of the DTA split between ordinary and capital DTA as of December 31, 2025 and 2024:


	2025			2024			Change
Ordinary
Discounting of unpaid losses		$	113		$	107		$	6
Nonadmitted assets		40			24			16
Unearned premium reserve		117			118			(1)
Bad debt expense		5			4			1


Investments		47			70			(23)
Intangible assets		2			3			(1)
Compensation and benefits accrual		8			10			(2)
Disregarded subsidiary		24			24			—
Deferred ceding commission liability		21			19			2
Other temporary differences		9			10			(1)
Subtotal		$	386		$	389		$	(3)
Nonadmitted		46			16			30
Admitted ordinary deferred tax assets		$	340		$	373		$	(33)
Capital
Investments		$	170		$	197		$	(27)

Net capital loss carryforward		3			—			3
Other temporary difference		1			1			—
Subtotal		$	174		$	198		$	(24)
Statutory valuation allowance adjustment		3			28			(25)
Admitted capital deferred tax assets		171			170			1
Admitted deferred tax assets		$	511		$	543		$	(32)

The following table shows the components of the DTL split between ordinary and capital DTL as of December 31, 2025 and 2024:


	2025			2024			Change
Ordinary
Investments		$	93		$	142		$	(49)
Tax Act adjustment to discounting of unpaid losses		—			4			(4)

Compensation and benefits accrual		8			10			(2)
Other temporary differences		1			1			—
Subtotal		102			157			(55)
Capital
Investments		188			171			17

Subtotal		188			171			17
Deferred tax liabilities		$	290		$	328		$	(38)
Net deferred tax assets (liabilities)		$	221		$	215		$	6

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 41 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The change in net deferred tax assets is comprised of the following:


	2025			2024			Change
Adjusted gross deferred tax assets		$	557		$	559		$	(2)
Total deferred tax liabilities		(290)			(328)			38
Net deferred tax assets (liabilities)		$	267		$	231		$	36
Tax effect of unrealized gains (losses)								(25)

Total change in deferred tax								$	61

Change in deferred tax - current year								$	28
Change in deferred tax - current year - other surplus items								(6)
Change in deferred tax - current year - total								$	22
Change in deferred tax - prior period correction								39
Total change in deferred tax								$	61

The following table shows the components of opening surplus adjustments on current and deferred taxes for the year ended December 31, 2025:


	Current			Deferred			Total

SSAP 3 impact:
SSAP 3 - general items		$	—		$	11		$	11
SSAP 3 - statutory valuation allowance		—			28			28
Subtotal SSAP 3		—			39			39
SSAP 3 - unrealized gain/loss		—			1			1
SSAP 3 - adjusted tax assets and liabilities		—			40			40
SSAP 3 - non-admitted impact		—			(40)			(40)
Total SSAP 3 impact		$	—		$	—		$	—

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 42 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The provision for federal and foreign income taxes is different from that which would be obtained by applying the statutory federal income tax rate to income before income taxes. The following table presents a reconciliation of such differences in arriving at total taxes related to the Company for the years ended December 31, 2025, 2024 and 2023:


	2025							2024							2023
Description		Amount			Tax Effect				Amount			Tax Effect				Amount			Tax Effect
Net Income (Loss) Before Federal Income Taxes and Capital Gains Taxes			$	1,095		$	230			$	885		$	186			$	653		$	137
Book to Tax Adjustments:
Tax Exempt Income, Net of Proration			(6)			(1)				(25)			(5)				(35)			(7)
Intercompany Dividends			(38)			(8)				(40)			(8)				—			—


Change in Other Surplus Items			27			6				78			16				167			35
Stock Options and Other Compensation			(1)			—				(2)			—				(4)			(1)
Change in Nonadmitted Assets			(76)			(16)				(6)			(1)				(57)			(12)
Change in Tax Position			—			2				—			3				—			4
Statutory Valuation Allowance			—			3				—			28				—			(6)
Disregarded Subsidiary			3			1				(1)			—				4			1
Return to Provision			—			(2)				—			—				—			1
Lag Elimination Impact			—			—				—			—				14			3

Other			2			—				4			—				6			1
Total Book to Tax Adjustments			$	(89)		$	(15)			$	8		$	33			$	95		$	19
Total Income Tax			$	1,006		$	215			$	893		$	218			$	748		$	155

Federal and Foreign Income Taxes Incurred			—			266				—			112				—			29
Federal Income Tax on Net Capital Gains			—			(29)				—			21				—			(1)
Change in Net Deferred Income Taxes			—			(22)				—			85				—			127
Total Income Tax			$	—		$	215			$	—		$	218			$	—		$	155



Operating loss and tax credit carry-forwards

At December 31, 2025 the Company had net capital loss carry forwards expiring through the year 2030 of:	$	13

As of December 31, 2025 the Company had no operating loss, foreign tax credits carry forwards, AMT credit carry forwards, capital loss carry forwards or any other unused tax credits available to offset against future taxable income

There were no deposits reported as admitted assets under Section 6603 of the Internal Revenue Service (IRS) Code as of December 31, 2025. The Company does not believe that the liability related to any federal or foreign tax loss contingencies will significantly change within the next 12 months. A reasonable estimate of such change cannot be made at this time.

As of December 31, 2025, there was a $2 receivable related to tax return errors and omissions and a $32 liability related to uncertain tax positions.

The U.S. is the only major tax jurisdiction of the Company. The Company is currently under examination by the IRS for the tax years 2011 through

2019 and are engaging in the Appeals process for certain disagreed issues related to tax years 2007 through 2010.

The following federal income taxes for 2023 to 2025 are available for recoupment in the event of future net losses:


	Year	Ordinary	Capital	Total
26.b.	2023	—	—	—
26.b.	2024	138	—	138
26.b.	2025	245	—	245

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 43 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

The following table lists those companies that form part of the 2025 AIG consolidated federal income tax return:

Company

AIG Aerospace Adjustment Services, Inc.

AIG Aerospace Insurance Services, Inc.

AIG Assurance Company

AIG BG Holdings LLC

AIG Capital Corporation

AIG Claims, Inc.

AIG Commercial Equipment Finance, Inc.

AIG Employee Services, Inc.

AIG FCOE, Inc.

AIG Financial Products Corp.

AIG Global Operations (Ireland) Limited

AIG Home Protection Company, Inc.

AIG Insurance Management Services, Inc.

AIG International Inc.

AIG Markets, Inc.

AIG Matched Funding Corp.

AIG MEA Investments and Services, LLC

AIG MGU Holdings Inc.

AIG North America, Inc.

AIG PC Global Services Inc.

AIG Procurement Services, Inc.

AIG Property Casualty Company

AIG Property Casualty International, LLC

AIG Property Casualty U.S., Inc.

AIG Property Casualty, Inc.

AIG Securities Lending Corp.

AIG Shared Services

AIG Shared Services Corporation

AIG Shared Services Corporation - Management

AIG Shared Services Corporation (Philippines)

AIG Specialty Insurance Company

AIG UNITED GUARANTY AGENZIA DI ASSICURAZIONE

AIG Warranty Services of Florida, Inc.

AIG WarrantyGuard, Inc.

AIG.COM, Inc.

AIG-FP Capital Preservation Corp.

AIG-FP Matched Funding Corp.

AIG-FP Pinestead Holdings Corp.

AIGGRE Europe Real Estate Fund I

AIGGRE U.S. Real Estate Fund I

AIGGRE U.S. Real Estate Fund II

AIGGRE U.S. Real Estate Fund IV Lexington

AIGGRE U.S. Real Estate Fund IV Sidecar

AIU Insurance Company

AM Holdings LLC

American Home Assurance Company

American International Facilities Management

American International Group, Inc.

American International Realty Corporation

American International Reinsurance

Arthur J. Glatfelter Agency, Inc.

Blackboard Customer Care Insurance Services

Glatfelter Insurance Company

Blackboard Services, LLC

Marbleshore Specialty Insurance Company

Blackboard U.S. Holdings, Inc.

Commerce and Industry Insurance Company

Corebridge REI Bartlett Investor III LLC

Corebridge REI Lexington Holdco LLC

Corebridge REI Papermill Investor III LLC

Design Professionals Association

Eaglestone Reinsurance Company

First Principles Capital Management, LLC

GIG of Missouri, Inc.

Glatfelter Claims Management, Inc.

Glatfelter Properties, LLC

Glatfelter Underwriting Services, Inc.

Global Loss Prevention, Inc.

Granite State Insurance Company

GRE DC Ballpark Investor, LLC

GRE U.S. LT Apartments Investor Lexington

Health Direct, Inc.

Illinois National Insurance Co.

JVJE Real Estate Holdings, LLC

LBMA Equipment Services, Inc.

Lexington Insurance Company

Lexington Specialty Insurance Agency, Inc.

MG Reinsurance Limited

MIP PE Holdings, LLC

Morefar Marketing, Inc.

Mt. Mansfield Company, Inc.

National Union Fire Insurance

National Union Fire Insurance Company

New Hampshire Insurance Company

PCG 2019 Corporate Member Limited

Pearce & Pearce, Inc.

Risk Specialists Companies

Service Net Solutions of Florida, LLC

Service Net Warranty, LLC

SNW Insurance Agency, LLC

Spruce Peak Realty, LLC

Stowe Mountain Holdings, Inc.

Stratford Insurance Company

Susquehanna Agents Alliance, LLC

The Glatfelter Agency, Inc.

The Insurance Company of the State of Pennsylvania

Tudor Insurance Company

Validus Specialty Underwriting Services, Inc.

Volunteer Firemen's Insurance Services, Inc.

Western World Insurance Company

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 44 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

9.Capital and Surplus and Dividend Restrictions

A.Dividend Restrictions

Under Pennsylvania law, the Company may pay dividends only from Unassigned surplus determined on a statutory basis.

Pennsylvania domiciled companies are restricted (on the basis of the greater of 10 percent of statutory surplus, inclusive of unrealized gains, as of December 31, 2025, or 100 percent of net income for the preceding twelve month period ended December 31, 2025) as to the amount of ordinary dividends they may declare or pay in any twelve-month period without the prior approval of the PA DOI. The maximum dividend payment which may be paid by the Company, during 2026 is $858.

Other than the limitations above, there are no restrictions placed on the portion of Company profits that may be paid as ordinary dividends to the stockholders.

The Company paid the following dividends during 2025 and 2024.

2025

State approval

Date paid

Amount

Type of Dividend

Required

Obtained

03/27/25

200

Ordinary

06/24/25

200

Ordinary

09/25/25

Ordinary

Total dividends paid

475

2024

State approval

Date paid

Amount

Type of Dividend

Required

Obtained

03/27/24

200

Ordinary

06/24/24

225

Ordinary

09/25/24

200

Ordinary

Total dividends paid

625

B.Capital & Surplus

Changes in balances of special surplus funds are due to adjustments in the amounts of reserves transferred under retroactive reinsurance agreements and when cash recoveries exceed the consideration paid.

The portion of Unassigned surplus at December 31, 2025 and 2024 represented or reduced by each item below is as follows:


Years Ended December 31,	2025		As Adjusted* 2024		2024
Unrealized gains and losses (net of taxes)	$	68	$	(97)	$	(99)
Nonadmitted asset values	(236)		(165)		(131)
Provision for reinsurance	(48)		(59)		(59)
* As Adjusted includes SSAP 3 prior year adjustments

The Company exceeded minimum RBC requirements at both December 31, 2025 and 2024.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 45 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

10.Contingencies

A.Legal Proceedings

In the normal course of business, AIG and its subsidiaries are, like others in the insurance and financial services industries in general, subject to regulatory and government investigations and actions, and litigation and other forms of dispute resolution in a large number of proceedings pending in various domestic and foreign jurisdictions. Certain of these matters involve potentially significant risk of loss due to potential for significant jury awards and settlements, punitive damages or other penalties. Many of these matters are also highly complex and seek recovery on behalf of a class or similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from these matters. In AIG’s insurance and reinsurance operations, litigation and arbitration concerning the scope of coverage under insurance and reinsurance contracts, and litigation and arbitration in which its subsidiaries defend or indemnify their insureds under insurance contracts, are generally considered in the establishment of loss reserves. Separate and apart from the foregoing matters involving insurance and reinsurance coverage, AIG, its subsidiaries and their respective officers and directors are subject to a variety of additional types of legal proceedings brought by holders of AIG securities, customers, employees and others, alleging, among other things, breach of contractual or fiduciary duties, bad faith and violations of federal and state statutes and regulations. With respect to these other categories of matters not arising out of claims for insurance or reinsurance coverage, the Company establishes reserves for loss contingencies when it is probable that a loss will be incurred and the amount of the loss can be reasonably estimated. In many instances, the Company is unable to determine whether a loss is probable or to reasonably estimate the amount of such a loss and, therefore, the potential future losses arising from legal proceedings may exceed the amount of liabilities that has been recorded in its financial statements covering these matters. While such potential future charges could be material, based on information currently known to management, management does not believe, other than may be discussed below, that any such charges are likely to have a material adverse effect on the Company’s financial position or results of operation.

Additionally, from time to time, various regulatory and governmental agencies review the transactions and practices of AIG and its subsidiaries in connection with industry-wide and other inquiries into, among other matters, the business practices of current and former operating insurance subsidiaries. The Company has cooperated, and will continue to cooperate, in producing documents and other information in response to such requests.

B.Leases

The Company is the lessee for office space occupied by it and several affiliates under various noncancellable operating lease agreements that expire through October 31, 2033. Rental expense under these leases is allocated to each affiliate based upon the percentage of space occupied. The total lease expense was $15, $10 and $8 in 2025, 2024 and 2023, respectively. Certain rental commitments have renewal options extending through the year 2038. Some of these renewals are subject to adjustments in future periods.

At December 31, 2025, the minimum aggregate rental commitments were as follows:


	Operating Leases
2026		$	14
2027		12
2028		10
2029		11
2030 and thereafter		106
Total minimum lease payments		$	153

C.Other Commitments

As part of its hedge fund, private equity, mortgage loan and real estate equity portfolio investments, as of December 31, 2025, the Company may be called upon for additional capital investments of up to $340.

At December 31, 2025, the Company had $97 of outstanding commitments related to various funding obligations associated with investments in commercial loans.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 46 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

D.Guarantees

The Company had issued guarantees whereby it unconditionally and irrevocably guaranteed all present and future obligations and liabilities arising from the policies of insurance issued by certain insurers who, as of the guarantee issue date, were members of the AIG holding company group. The guarantees were provided in order to secure or maintain the guaranteed companies' rating status issued by certain rating agencies. The Company would be required to perform under the guarantee in the event that a guaranteed entity failed to make payments due under policies of insurance issued during the period of the guarantee. The Company has not been required to perform under any of the guarantees. The Company remains contingently liable for all policyholder obligations associated with insurance policies issued by the guaranteed entity during the period in which the guarantee was in force.

Each guaranteed entity has reported invested assets in excess of their direct (prior to reinsurance) policyholder liabilities. Additionally, the Company is party to an agreement with AIG whereby AIG has agreed to make any payments due under the guarantees in the Company's place and stead. Furthermore, for any former affiliate that has been sold, the purchaser has provided the Company with hold harmless agreements relative to the guarantee of the divested affiliate. Accordingly, management believes that the likelihood of payment under any of the guarantees is remote.

The following schedule sets forth the effective and termination dates (agreements with guarantees in run off), of each guarantee, the amount of direct policyholder obligations guaranteed, the invested assets and policyholder surplus for each guaranteed entity as of December 31, 2025:


Guaranteed Company		Date Issued	Date Terminated	Policyholder Obligations @ 12/31/2025		Invested Assets @ 12/31/2025		Estimated Loss @ 12/31/2025		Policyholders' Surplus 12/31/2025
AHICO First American-Hungarian Insurance Company (n/k/a MetLife Europe d.a.c.)		9/15/1998	1/30/2009	$	13	$	544	$	—	$	(67)
AIG Insurance Company - Puerto Rico (f/k/a Chartis Insurance Company - Puerto Rico)		11/5/1997	12/31/2009	1		145		—		120
American General Life Insurance Company of Delaware (f/k/a AIG Life Insurance Company)	*	7/13/1998	12/29/2006	2,444		258,953		—		12,503
American International Assurance Company (Bermuda) Limited	**	8/23/1999	1/31/2008	21,647		41,595		—		3,108
American International Life Assurance Company of New York	*	7/13/1998	4/30/2010	1,969		34,786		—		2,239
Chartis Excess Limited (f/k/a AIG Excess Liability Insurance International Limited)	*	5/28/1998	6/30/2014	24		1,609		—		892
Chartis Excess Limited (f/k/a AIG Excess Liability Insurance International Limited)	*	5/28/1998	6/30/2014	35		7,023		—		2,329
Chartis Insurance Ireland Limited (f/k/a AIG Europe (Ireland) Limited)	*	12/15/1997	1/31/2012	4		9,645		—		2,456
Chartis Select Insurance Company (f/k/a AIG Excess Liability Insurance Company, Ltd.)	*	7/29/1998	4/30/2012	4		15,185		—		4,934
First American Czech Insurance Company, A.S. (n/k/a MetLife Europe d.a.c.)		9/15/1998	1/30/2009	155		608		—		(4)
La Meridional Compania Argentina de Seguros S.A.		1/6/1998	11/30/2016	169		125		—		75
Total				$	26,465	$	370,218	$	—	$	28,585
* Current Affiliates
**AIA was formerly as subsidiary of AIG, Inc. In previous years AIA provided the direct policyholder obligations as of each year end. However, starting in 2014 AIA declined to provide financial information related to these guarantees. The financial information reflects amounts as of December 31, 2012, at which time the guaranteed entities had invested assets in excess of direct policyholder obligations and were in a positive surplus position. Such amounts continue to remain the Company’s best estimate given available financial information. The guaranteed policyholder obligations will decline as the policies expire.

E.Joint and Several Liabilities

AIUI is jointly and severally obligated to the policyholders of their Japan branch, in connection with the transfer of the business of the Japan branch to a Japan-domiciled affiliate in 2013. Under the terms of the transfer agreement, the Japan affiliate has agreed to be responsible for 100% of the obligations associated with such policies, and management expects such companies to satisfy their obligation. The Company carries no reserves with respect to such liabilities. The Japanese affiliate carried $2 and $5 of loss reserves in respect of such policies as of December 31, 2025 and 2024, respectively. As of December 31, 2025, if the Japan affiliates were to fail to satisfy their obligations, the Company’s share of the aggregate exposure under the pooling agreement is $1.

Each Pool member is also jointly and severally obligated to the other Pool members, in proportion to their pool share, in the event any other Pool member fails.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 47 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

11.Other Significant Matter

A.Other Assets

As of December 31, 2025 and 2024, other admitted assets as reported in the accompanying Statements of Admitted Assets were comprised of the following balances:


Other admitted assets	2025			2024
Deposit accounting assets		$	9		$	9
Guaranty funds receivable on deposit		4			4
Loss funds on deposit		130			113
Contra Investments		252			153
Other assets		107			79
Equities in underwriting pools and associations		5			6

Total other admitted assets		$	507		$	364

B.Other Liabilities

As of December 31, 2025 and 2024, other liabilities as reported in the accompanying Statements of Liabilities, Capital and Surplus were comprised of the following balances:


Other liabilities	2025			2024
Assumed mortgage guaranty contingency reserve		$	209		$	209
Ceded mortgage guaranty contingency reserve		(209)			(209)
Escrow Deposit Liability		130			122
Other accrued liabilities		171			211
Retroactive reinsurance reserves - assumed		25			31
Retroactive reinsurance reserves - ceded		(41)			(42)
Deferred commission earnings		100			90
Escrow funds (NICO)		20			33

Servicing carrier liability		13			15
Collateral on derivative assets		2			64
Remittances and items not allocated		8			5
Paid loss clearing contra liability (loss reserve offset for paid claims)		(82)			(28)

Total other liabilities		$	346		$	501

C.Other (Expense) Income

For the years ended December 31, 2025, 2024 and 2023, other (expense) income as reported in the accompanying Statements of Operations and Changes in Capital and Surplus were comprised of the following balances:


Other (expense) income	2025			2024			2023
Other (expense) income		$	4		$	7		$	8
Fee income on deposit programs		4			3			3
Interest expense on reinsurance program		(26)			(46)			(32)
Total other expense		$	(18)		$	(36)		$	(21)

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 48 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

D.Non-Cash items

For the years ended December 31, 2025, 2024 and 2023, the amounts reported in the Statements of Cash Flow are net of the following non-cash items:


Non-cash transactions	Classification	2025		2024		2023











Funds Held:
Premiums collected	Operating	$	6	$	1	$	(8)
Benefit and loss related payments	Operating	(10)		(16)		25
Commissions	Operating	(10)		(6)		10
Interest	Operating	21		43		(29)
Funds Held	Miscellaneous	8		22		(1)
Securities received/transferred:
Securities received	Investing	$	426	$	157	$	723
Securities transferred	Investing	(673)		(722)		(575)

E.Federal Home Loan Bank (“FHLB”) Agreements

The Company is a member of the FHLB of Pittsburgh. Such membership requires ownership of stock in the FHLB. The Company owned an aggregate of $4 and $4 of stock in the FHLB at December 31, 2025 and 2024, respectively.

Through its membership, the Company has conducted business activity (borrowings) with the FHLB. The Company utilizes the FHLB facility to supplement liquidity or for other uses deemed appropriate by management. The outstanding borrowings are being used primarily for interest rate risk management purposes in connection with certain reinsurance arrangements, and the balances are expected to decline as underlying premiums are collected. The Company is required to pledge certain mortgage-backed securities, government and agency securities and other qualifying assets to secure advances obtained from the FHLB. The FHLB applies a haircut to collateral pledged to determine the amount of borrowing capacity it will provide to its member. As of December 31, 2025, the Company had an actual borrowing capacity of $1,253. based on qualified pledged collateral. At December 31, 2025, the Company had borrowings of $0 from the FHLB.

F.Unused commitments and lines of credit for financing arrangements



	2025				2024
	Unused Commitments		Unused Lines of Credit		Unused Commitments		Unused Lines of Credit
	Unused Commitments		Unused Lines of Credit		Unused Commitments		Unused Lines of Credit
Short-Term (contracts terminating in 12 months or less)	$	—	$	—	$	—	$	—
Long-Term (contracts terminating in more than 12 months)	$	—	$	1,753	$	—	$	1,389
TOTAL	$	—	$	1,753	$	—	$	1,389

G.Insurance-Linked Securities

As of December 31, 2025 and 2024, the Company was not a ceding insurer in catastrophe bond reinsurance transactions in force.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 49 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.

National Union Fire Insurance Company of Pittsburgh, Pa.

Statutory Basis Financial Statements
(Dollars in Millions)

H.Reconciliation to Annual Statement

The following is a reconciliation of amounts previously reported to the Department in the 2025 Annual Statements, to those reported in the accompanying statutory basis financial statements:


December 31, 2025	Assets		Liabilities		Net Income		Surplus
As per annual statements	$	20,549	$	14,703	$	858	$	5,846
Common Stock impairment	(30)		—		—		(30)




As per audited financial statements	$	20,519	$	14,703	$	858	$	5,816

The 2025 reconciliation above reflects the impact of the following adjustments:

Common Stock impairment - To record the impairment of a certain equity method common stock.

The following is a reconciliation of amounts previously reported to the Department in the 2024 Annual Statements, to those reported in the accompanying statutory basis financial statements:


December 31, 2024	Assets		Liabilities		Net Income		Surplus
As per annual statements	$	20,719	$	15,306	$	760	$	5,413
Overstatement of Mutual Fund	(13)		(3)		(10)		(10)
As per audited financial statements	$	20,706	$	15,303	$	750	$	5,403

The 2024 reconciliation above reflects the impact of the following adjustments:

Realized collateral adjustment - To adjust for a collateral transaction that was incorrectly cleared through realized gains (losses).

There were no adjustments to the amounts previously reported to the Department in the 2023 Annual Statements, to those reported in the accompanying statutory basis financial statements.

12.Subsequent Events

Subsequent events have been considered through April 22, 2026 for these Financial Statements issued on April 22, 2026.

Type I – Recognized Subsequent Events:

None

Type II – Nonrecognized Subsequent Events:

None

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 50 NOTES TO FINANCIAL STATEMENTS - As of December 31, 2025 and 2024 and for years ended December 31, 2025, 2024 and 2023.