38 added · 38 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
In addition, in a number of jurisdictions, particularly the European Union and the United Kingdom and a small number of U.S. states, a reinsurer is permitted to transfer a reinsurance arrangement to another reinsurer, which may be less creditworthy, without a counterparty’s consent, provided that the transfer has been approved by the applicable regulatory and/or court authority. 16 For additional information regarding reinsurance, see note 6 of the notes to the consolidated financial statements and “Item 1A—Risk Factors—We may not be able to collect all amounts due to us from reinsurers, reinsurance coverage may not be available to us in the future at commercially reasonable rates or at all and we are exposed to credit risk related to our structured settlements.” For a description of reinsurance-related litigation, see note 17 of the notes to the consolidated financial statements.
Personal Insurance may also retain amounts greater than those described herein based upon the individual characteristics of the risk. 14 Geographic Distribution The following table shows the geographic distribution of Personal Insurance’s direct written premiums for the year ended December 31, 2025.
The Company, based upon the FSOC’s rules and interpretive guidance, has not been designated as a SIFI and is not subject to regulation by the Federal Reserve.
Since 1995, the Company has had a distribution agreement with the agency affiliate of GEICO to underwrite a portion of their homeowners business. 13 Pricing and Underwriting Personal Insurance has developed a product management methodology that integrates the disciplines of underwriting, claims, actuarial, risk management and product development.
The Company (as a financial company with more than $50 billion in assets) could be assessed, and although any such assessment is required to be risk weighted (i.e., riskier firms pay more), such costs could be material and are not currently estimable.
The Company’s managing agency (Travelers Syndicate Management Limited, or TSML) of its Lloyd’s syndicate (Syndicate 5000 at Lloyd’s) is also regulated by the PRA and the FCA, which have delegated certain regulatory responsibilities to the Council of Lloyd’s.
Since January 1, 2019, the Company has used a Lloyd’s insurance subsidiary in Brussels, Belgium (Lloyd’s Brussels) to cover its Lloyd’s customers’ risks in the European Union (EU).
Geographic Distribution The following table shows the geographic distribution of Bond & Specialty Insurance’s direct written premiums for the year ended December 31, 2025.
Geographic Distribution The following table shows the geographic distribution of Business Insurance’s direct written premiums for the year ended December 31, 2025.
The treaty covers the United States, its territories, possessions and waters contiguous thereto from July 1, 2025 through and including June 30, 2026.
This joint venture investment is accounted for using the equity method and is included in “other investments” on the consolidated balance sheet. 10 Selected Product Information The following table sets forth Bond & Specialty Insurance’s net written premiums by product line for the periods indicated.
For a description of the product lines referred to in the table, see “—Product Lines.” In addition, see “—Principal Markets and Methods of Distribution” for a discussion of distribution channels for Bond & Specialty Insurance’s product lines.
No longer disclosed
For additional information regarding reinsurance, see note 6 of the notes to the consolidated financial statements and “Item 1A—Risk Factors—We may not be able to collect all amounts due to us from reinsurers, reinsurance coverage may not be available to us in the future at commercially reasonable rates or at all and we are exposed to credit risk related to our structured settlements.” For a description of reinsurance-related litigation, see note 17 of the notes to the consolidated financial statements.
On January 2, 2024, the Company completed its acquisition of all issued and outstanding shares of Corvus.
Personal Insurance had approximately 425,000 active policies in Canada at December 31, 2024. 14 Net Retention Policy Per Risk The following discussion reflects the Company’s retention policy with respect to Personal Insurance as of January 1, 2025.
This treaty provided up to $293 million part of $325 million of coverage for Middle Market, subject to a $135 million retention (i.e., for every dollar of loss between $135 million and $460 million, this treaty provided 90 cents of coverage) for the period from July 1, 2024 through and including June 30, 2025.
This treaty provides up to $160 million part of $200 million of coverage, subject to a $170 million retention, for losses occurring from an earthquake, including fire following and sprinkler leakage, incurred by Personal Insurance from January 1, 2025 through and including December 31, 2025.
This treaty provides coverage for 50% of losses in excess of C$100 million (US$69 million at December 31, 2024) up to C$200 million (US$139 million at December 31, 2024) and for 100% of losses in excess of C$200 million (US$139 million at December 31, 2024) up to C$500 million (US$347 million at December 31, 2024), in each case with respect to the accumulation of net property losses arising out of one occurrence on business written by the Company’s Canadian businesses for the period from July 1, 2024 through and including June 30, 2025.
The Company has developed expertise in various markets in these countries similar to those served in the United States and provides certain specialty coverages for these markets. 12 PERSONAL INSURANCE Personal Insurance offers a broad range of property and casualty insurance products and services covering individuals’ personal risks, primarily in the United States, as well as in Canada.
The Company’s product management area establishes underwriting guidelines integrated with its filed pricing and rating plans, which enable Personal Insurance to effectively execute its risk selection and pricing processes. 13 Domestic Pricing for personal automobile insurance is driven in large part by changes in the frequency of claims and changes in severity, including inflation in the cost of automobile replacements and repairs (including parts and labor), medical care and resolution of liability claims.
Because the use of this technology facilitates the process of generating multiple quotes, the technology has increased price comparison on new and renewal business. 15 International Personal Insurance competes with numerous international and domestic insurers in Canada.
In recent years, these internal resources and expanded digital capabilities were successfully deployed to respond to a significant level of catastrophe claims. 16 REINSURANCE The Company reinsures a portion of the risks it underwrites in order to manage its exposure to losses and to protect its capital.
In addition, in a number of jurisdictions, particularly the European Union and the United Kingdom and a small number of U.S. states, a reinsurer is permitted to transfer a reinsurance arrangement to another reinsurer, which may be less creditworthy, without a counterparty’s consent, provided that the transfer has been approved by the applicable regulatory and/or court authority.
For other business underwritten in Canada, as well as for business written in the United Kingdom and the Republic of Ireland and in the Company’s operations at Lloyd’s, separate reinsurance protections are purchased locally that have lower net retentions more commensurate with the size of the respective local balance sheet.