Reinsurance Recoverables

On September 23, 2026, the Company entered into a Reinsurance Commutation and Release Agreement (the “Commutation Agreement”) with National Indemnity Company ("NICO"), a subsidiary of Berkshire Hathaway Inc., resulting in the commutation and termination of the asbestos and environmental adverse development cover ("A&E ADC")

agreement. Upon execution of the Commutation Agreement, the Company reduced the related reinsurance recoverable from $1.437 billion to the $1.120 billion commutation amount and recognized a $317 reduction in the deferred gain on retroactive reinsurance. On September 25, 2026, the Company received the $1.120 billion cash payment from NICO. For more information on the A&E ADC and Commutation Agreement, refer to Note 9 - Reserve for Unpaid Losses and Loss Adjustment Expenses.


Reinsurance Recoverables by Credit Quality Indicator
	As of September 30, 2026								As of December 31, 2025
	P&C		Employee Benefits		Corporate		Total		P&C		Employee Benefits		Corporate		Total
A.M. Best Financial Strength Rating
A++	$	683	$	—	$	—	$	683	$	2,161	$	—	$	—	$	2,161
A+	2,264		312		205		2,781		2,292		286		213		2,791
A	691		1		—		692		764		1		—		765
A-	585		3		—		588		603		3		2		608
B++	2		—		2		4		2		—		—		2
Below B++	22		—		—		22		21		—		—		21
Total Rated by A.M. Best	4,247		316		207		4,770		5,843		290		215		6,348
Mandatory (Assigned) and Voluntary Risk Pools	191		—		—		191		204		—		—		204
Captives	484		—		—		484		465		—		—		465
Other not rated companies	222		6		—		228		238		5		—		243
Gross Reinsurance Recoverables	5,144		322		207		5,673		6,750		295		215		7,260
Allowance for uncollectible reinsurance	(69)		(1)		(2)		(72)		(66)		(1)		(2)		(69)
Net Reinsurance Recoverables	$	5,075	$	321	$	205	$	5,601	$	6,684	$	294	$	213	$	7,191


Allowance for Uncollectible Reinsurance
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
P&C beginning allowance for uncollectible reinsurance	$	67	$	72	$	66	$	72
Beginning allowance for disputed amounts	44		51		42		48
P&C beginning ACL	23		21		24		24
Current period provision (release)	2		1		1		(2)
Current period gross write-offs	—		—		—		—
P&C ending ACL	25		22		25		22
Ending allowance for disputed amounts	44		51		44		51
P&C ending allowance for uncollectible reinsurance	69		73		69		73
Employee Benefits allowance for uncollectible reinsurance	1		1		1		1
Corporate allowance for uncollectible reinsurance	2		2		2		2
Total allowance for uncollectible reinsurance	$	72	$	76	$	72	$	76

There have been no material changes to the allowance for uncollectible reinsurance in the three and nine months ended September 30, 2026 and 2025. For further information regarding the Company's determination of reinsurance recoverables and reinsurance allowance for uncollectible reinsurance, see Note 8 - Reinsurance of Notes to Consolidated Financial Statements included in the Company's 2025 Form 10-K Annual Report.