W. R. Berkley Annual Report 2020

FY2020 Annual Report · W. R. Berkley

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W. R. Berkley Corporation | 2020 Annual Report

I am convinced that
life is 10% what happens
to me and 90% how
I react to it. And so it
is with you.

“ The longer I live, the more I realize the impact of
attitude on life. Attitude, to me, is more important
than facts. It is more important than the past, than
education, than money, than circumstances, than
failures, than successes, than what other people think
or say or do. The remarkable thing is we have a choice
every day regarding the attitude we will embrace for
that day. We cannot change our past. We cannot
change the fact that people will act in a certain way.
We cannot change the inevitable. The only thing we
can do is play on the one string we have, and that is our
attitude. I am convinced that life is 10% what happens
to me and 90% how I react to it. And so it is with you.
We are in charge of our attitudes.”

~ Charles Swindoll

02 Financial Highlights

03 Letter to Shareholders

04 Financial Results

08 Selected Financial Data

10 Serving Our Clients

14 Supporting Our Distribution Partners

18 Empowering Our People

22 Serving Our Communities

26 W. R. Berkley Corporation
Performance vs. S&P 500

27 Relative Stock Price Performance

28 Our Business

29 Our Company

30 Segment Overview

31 Segment Data

Investments

33 Form 10-K

165 Operating Units

174 Board of Directors & Officers

176 Corporate Information

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It is our belief that attitude is everything — how one
acts and reacts and the standards one lives up to
are more important to the outcome than what events
may happen in life or business, as exemplified by the
Charles Swindoll quotation. By its nature, property
and casualty insurance is an industry that requires
responsiveness, compassion and a helpful, can-do
attitude. Our business model has fostered personal
responsibility, accountability and doing the right
thing for our stakeholders since the Company was
formed more than 50 years ago. It is the foundation
of our culture that has made us a resilient company,
built for long-term success.

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2020
Financial
Highlights

By taking advantage of challenging opportunities and bringing together talented people and capital,
we feel confident we will be able to continue to deliver outstanding long-term returns.

COMBINED RATIO

TOTAL REVENUES

94.9%

$8.1B

RETURN ON STOCKHOLDERS’ EQUITY
Averaged 11.4% over the past 5 years

8.7%

BOOK VALUE PER SHARE
Grew 67.5% before dividends and share
repurchases over the past 5 years

$35.49

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To Our
Shareholders

LEFT TO RIGHT:

W. Robert Berkley, Jr.,
President and Chief Executive Officer

William R. Berkley,
Executive Chairman

2020 was a year unlike one we have
ever experienced; it was unique.
Our Company’s focus on risk-adjusted
return continued, but our efforts for
much of the year centered on the inherent
risks of COVID-19 and how it impacted
our employees, customers and our
enterprise as well as the communities
in which we operate.

We delivered satisfactory economic returns, but
some of our proudest achievements are directly
related to our colleagues’ support of the communi-
ties in which we work. Overnight, almost all of our
enterprise began operating remotely and has con-
tinued to do so. We modified our operating systems
to make the changes seamless and the quality of our
service and delivery of our insurance products did
not miss a beat. The Company was supportive of our
agents and brokers, while helping them deal with this
extraordinary environment. We contributed millions
of dollars to various not-for-profit organizations,
including food banks and medical service providers.
Our employees volunteered within their communi-
ties, providing local support to thousands of people.
We continued to reach out to all of our constituents
during this very difficult time.

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TO O UR SHAREHOLDERS

Total Revenues
(dollars in billions)

2016

2017

2018

2019

2020

$7.7

$7.9

$8.1

2016

2017

2018

2019

2020

The year was also complicated because of the U.S.
Presidential election. This created an increasing
level of anxiety and uncertainty. The political turmoil
had global impact on the world economy and global
trade. In an industry that prospers best with predict-
ability, these levels of uncertainty made operating
more complicated. At the same time, global eco-
nomic policy, which was built on deficit spending and
drove down interest rates, created new risks for
our business. Record low interest rates resulted in
low investment returns and at the same time we
were faced with increased risks of both financial
and social inflation.

The overall environment is clearly the place to start
when examining 2020. The two issues already men-
tioned above caused tremendous adverse impact on
economic activity. Many businesses closed. In-person
business transactions came to a virtual stop; restau-
rants and entertainment still have not reopened
to anything approaching the pre-COVID level. Unem-
ployment levels inclusive of those people who left
the job market are close to 10%. All this has resulted
in enormous government stimulation with the
concomitant government deficits in the trillions
of dollars. The deficits have been exacerbated by

$11.2

the fact that, in this political year, more spending was
the one thing most politicians could agree upon.
$11.7

As we entered the second half of 2020 with vaccines
$12.0
on the horizon, optimism took hold and markets
rebounded. Interest rates continued to stay at record
lows supported by the Federal Reserve and modest
improvements in the business world became visi-
ble. Simultaneously, the housing market began to
rebound substantially, further stimulating economic
activity. The country was not yet doing well, but gen-
erally people were optimistic and those who invested
in the tech side of the equities market were doing
incredibly well. The stock market was at record highs
and interest rates were at record lows.

$12.6

$13.8

The politics of the election became ugly. Questions
were raised about our democratic institutions and
about our democracy itself, further increasing the
overall level of social anxiety and uncertainty. To
some, these questions seemed unwarranted and to
others it was a responsibility of our society to ask
these questions. We are on a better path now that
the vaccine has been distributed to well over 15% of
the U.S. population and the election is resolved.

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

$16.6

$17.5

$17.7

$18.5

$20.9

$5.0

$5.4

$6.1

$6.3

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2017

2018

2019

2020

2016

2017

2018

2019

2020

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$16.6

$17.5

$17.7

$18.5

$20.9

Investments
Market Value (dollars in billions)

$7.7

$7.9

$8.1

2016

2017

2018

2019

2020

$11.7

$11.2

While dealing with these societal issues, the Company
had to make many adjustments. We activated all of
our plans to operate remotely and within a relatively
short period of time, practically all of our businesses
were operating on a remote basis, delivering our
products and services to all of our agents, brokers
and insureds. Many of our activities required some
modification and clearly these changes tested the
culture of teamwork that is the hallmark of our enter-
prise. We were able to transform our companies to
operate successfully.

$13.8

$12.0

$12.6

2016

2017

2018

2019

2020

because of the enormous effort put forth by
$5.0
our employees, who helped us work through this
complicated, stressful period.

$5.4

The financial results of the business were generally
satisfactory given the circumstances of the year.
Overall investment income was down primarily
because of our shortened duration and declining
interest rates. We made the conscious decision
to shorten our duration, which reduced the risk of
capital loss if interest rates increase in the future,
as we expect.

$6.1

$6.3

Many of our employees did volunteer work for those
less fortunate and frequently we stepped in to provide
specific assistance to some of our agents and brokers
who had special issues in this new virtual environment.

We are incredibly proud of the effort
everyone put forth; not just in helping our
enterprise, but also in helping so many
colleagues get through this difficult time.

We are not yet through the COVID-19 event but we are
well on our way. We have gotten to where we are only

Our private equity and fund investing delivered
excellent returns. Our arbitrage account had its best
year in a decade. In addition, we sold one consequen-
tial real estate investment for a substantial gain.

We continue to evaluate our real estate portfolio
in an opportunistic fashion, and at the same time we
are examining new opportunities in non-traditional
investments that offer higher returns than fixed
income securities. Assessment of risk is critical if
one hopes to be a successful investor. We continue
to seek out opportunities that can provide improved
returns to our shareholders. In this transitional
process, we have substantially increased our liquidity
with over 15% of our portfolio in cash and short-term

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TO O UR SHAREHOLDERS

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

Reserves for Losses and Loss Expenses
(dollars in billions)

$7.7

2016

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$7.7

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2017

$7.7

$7.9

$8.1

2018

2019

2020

$11.2

$11.7

$12.0

$12.6

$13.8

2016

2017

2018

2019

2020

$16.6

$17.5

$17.7

$18.5

$20.9

$5.0

$5.4

$6.1

$6.3

FIVE-YEAR GROWTH IN BOOK VALUE PER SHARE

43%

FIVE-YEAR GROWTH IN NET PREMIUMS WRITTEN

securities. We expect, over the next 12 months, to
find improving risk-adjusted returns for much of
these funds.

The cornerstone of our business has
always been outstanding insurance
underwriting results.

17%

We select lines of business that offer opportunities
for above-average profitability. In addition, our risk
selection process, executed by experienced under-
writers, allows us to achieve loss ratios that are more
attractive than the industry average. At the same
time, we focus on delivering outstanding service from
the beginning of the underwriting process right
through and including the handling of claims. The end
result has generally allowed our Company to have
underwriting results well above the industry average.
It is still incumbent upon us to manage the expenses
of running our business at a level where we continue
to be competitive and we must deliver first-quality
service in the most timely fashion.

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2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

$7.7

$7.9

$8.1

$11.2

$11.7

$12.0

$12.6

$13.8

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

Common Stockholders’ Equity*
(dollars in billions)

$16.6

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$17.5

$17.7

$18.5

$20.9

$5.0

$5.4

$6.1

$6.3

* Net of $874 million in special dividends and shares repurchased from 2016 to 2020

2020 was not a year where the basics were enough.
Pressure from low interest rates and the need to
raise rates to deal with potential increasing social
inflation and financial inflation required management
not just to pay attention to pricing, but to search for
opportunities to grow in an economy that provided
little growth on its own.

As we worked our way through the
year, we consciously reserved for the
uncertainties that we saw ahead of
us and pushed forward to help assure
that we would be well situated to
capitalize on all the opportunities that
presented themselves in the future.

2020 was not the year we hoped for. Our return on
capital was down substantially, primarily because
investment income declined as a result of lower
interest rates and a shorter-duration portfolio as
well as losses related to COVID-19. We used this
opportunity to carefully prepare our Company for
2021 and the years ahead. We are optimistic about
every aspect of our enterprise. We could not have
gotten through all these difficult times without
the incredible commitment of our employees, the
guidance of our Board, the support of our agents
and brokers, and our ongoing relationships with our
customers. We thank all of them for helping us get
through this challenging time and we look forward to
better years ahead.

We feel we were able to do that in 2020 and we are
prepared to seize the opportunities to improve our
profitability and grow our business.

William R. Berkley
Executive Chairman

W. Robert Berkley, Jr.
President and
Chief Executive Officer

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Selected
Financial Data

In thousands, except per share data
Years ended December 31,

Total revenues

Net premiums written

Net investment income

Net realized and unrealized gains
on investments*

2016

2017

2018

2019

2020

$7,654,184

$7,684,764

$7,691,651

$7,902,196

$8,098,925

6,423,913

6,260,508

6,433,227

6,863,499

7,262,437

564,163

575,788

674,235

645,614

583,821

267,005

335,858

154,488

120,703

103,000

Insurance service fees

138,944

134,729

117,757

92,680

88,777

Net income to common stockholders

601,916

549,094

649,749

681,944

530,670

NET INCOME PER COMMON SHARE

Basic

Diluted

3.27

3.12

2.93

2.84

3.37

3.33

3.58

3.52

Return on common stockholders’ equity

13.1%

10.9%

11.8%

12.5%

2.84

2.81

8.7%

AT YEAR END

Total assets

Total investments

$23,364,844

$24,299,917

$24,895,977

$26,643,428

$28,606,913

16,649,792

17,450,508

17,723,089

18,473,674

18,481,776

Reserves for losses and loss expenses

11,197,195

11,670,408

11,966,448

12,583,249

13,784,430

Common stockholders’ equity

5,047,208

5,411,343

5,437,851

6,074,939

6,310,802

Common shares outstanding

181,194

182,272

182,994

183,412

177,825

Common stockholders’ equity per share

27.76

29.69

29.72

33.12

35.49

Per share data and common shares outstanding have been adjusted for the 3-for-2 common stock split effected on April 2, 2019.
*Beginning in 2018, net unrealized gains on equity securities are included within net income due to our adoption of ASU 2016-01 on January 1, 2018.

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2020 was a year like no other, characterized by
extreme uncertainty and unpredictability. It demanded
responsiveness, resiliency, flexibility and innovative
thinking. Our team rose to the challenge by delivering
uninterrupted service and going above and beyond
to help others in the face of difficult circumstances.
At the same time, we continued to address the
emerging needs of our clients in the ever-changing
world of risk. This annual report highlights the way
in which our Company and our employees support four
key stakeholder groups — our clients, our distribution
partners, our people and our communities — and by
extension, our shareholders.

Insurance done right by a company of people who care.

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Serving
Our Clients

“Insurance is a promise.
Being there when it counts
in good times and in bad —
to help prevent losses and
respond to them when they
do occur — engenders the
trust of our customers.”

Property and casualty insurance is critical to the functioning
of modern society and the overall economy. Consequently,
the industry plays a pivotal role in supporting and advancing
the world’s evolving needs for products and services that help
manage risk and, in turn, allow clients to deliver their products
and services to the consumer. Our disciplined underwriting
and deep expertise allow us to remain a consistent and stable
market in our selected businesses throughout the insurance
cycle and under all conditions. Berkley supports its clients by
helping them to manage their exposure and cost of risk, focusing
on better outcomes and providing coverage for emerging risks.

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SERVING OUR CLIENTS

Created by rahmat
from the Noun Project

Providing a Market
for Product Liability
Insurance for
COVID-19 Vaccine

Created by Vectors Point
from the Noun Project

Being Prepared with
Cyber Insurance

Through Berkley Life Sciences, we offer liability coverage
to a range of companies, from those with products in the
preclinical stage to Fortune 1000 companies with numer-
ous products on the market, including some of the leading
producers of COVID-19 vaccines. At a time when fewer
competitors are offering limits for such risks, this coverage
enables pharmaceutical companies to manufacture and
distribute their products to people around the world. The
vaccines, in turn, can protect inoculated individuals and
those around them from COVID-19, thereby reducing the
spread of the virus and facilitating the reopening of society.

“We work with companies involved in the life
sciences area. These are the companies that
change the lives of people every day.”

The risk of cyber attack, data breach or data theft is one
of the fastest-growing and most uncertain emerging risks
that businesses and individuals face today. Our leading
industry experts in the field understand that merely
providing coverage in the event of a loss is not sufficient
for a risk that carries the potential for unknown and
widespread impacts. Pre- and post-breach services that
support prevention and preparedness as well as recovery
after an event are critical to helping clients manage their
risk. All of our operating units take a proactive view of
managing their exposure to losses from cyber events, and
a select number of them offer their clients coverage, advice
and access to resources. Berkley Cyber Risk’s singular
focus on cyber as a peril allows us to constantly refine and
update new coverage options for emerging cyber risks
and trends and to be responsive to client-specific coverage
and service needs. As a reinsurance provider, Berkley Re
Solutions offers turnkey products for clients that provide
insurance and services to small businesses, individuals
and families, and farm owners.

The average
cost of a
data breach in
2020 was:

$3.86M

According to a report from IBM and the Ponemon Institute

“Boards of directors cannot pay lip service to cyber
risk anymore. They need to understand that a
cyber breach may not only be a reputational damage
crisis situation; it can also have material financial
consequences, no matter the size of the company.”

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Supporting Healthcare
Organizations and
Their Workers

Created by mynamepong
from the Noun Project

Focusing on
Better Outcomes for
Injured Workers

The healthcare industry is rapidly evolving, shaped by
emerging concepts in science, technology, law, public
welfare and social economics. The COVID-19 pandemic
added a tremendous level of additional complexity to
insuring healthcare providers and their workers in 2020
and beyond, causing certain insurance providers to
withdraw from the market. In 2020, we increased our
commitment to the healthcare industry by introducing new
products and services, such as a suite of products to cover
non-emergency medical transportation providers. Through
our operating units, we apply innovative insurance con-
cepts to traditional healthcare insurance and provide a
wide range of coverages, including professional liability,
general liability, commercial auto, financial lines, workers’
compensation, and accident and health, to a broad spec-
trum of healthcare and related businesses. Our products
and services are designed to address the current complex-
ity of the healthcare industry and provide flexibility to our
clients in managing enterprise risk.

At Berkley, we invest in better solutions to achieve better
outcomes. Better outcomes in workers’ compensation
cases mean more than just saving money on a claim for the
insured employer. They mean finding the right care for
injured workers that gets them healthy enough to get back
on their feet and back to work, or in the case of a cata-
strophic injury, to the best possible quality of life. Through
the use of early-severity predictive models that enable
early-care intervention, nurse case managers, pharmacy
bill managers, injured employee portals and injured
employee return-to-work programs, we work with our
clients to improve outcomes when injuries occur. As
importantly, our educational safety and loss-control
programs can help insureds improve health and safety
protocols to reduce the incidence of injury to their
employees. We believe people should be safe at work,
accidents are preventable, and people deserve excep-
tional care and compassion. When an accident does occur,
responsiveness makes a difference.

• Healthcare is the fastest-growing sector of the

U.S. economy, employing over 18 million workers.

Source: CDC

“One of the things that I think I really value is the
fact that, from a claims standpoint, they are truly
concerned about the well-being of the injured
employee and that is kind of invaluable. We feel like
we have created a better program, better coverage,
better pricing and better service.”

WORKERS’ COMPENSATION INSURANCE AGENT

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Supporting
Our Distribution
Partners

“Having the right partners
has been incredibly impactful
on our business. We continue
to believe that expertise
combined with capital,
delivered with good advice,
is the best way to deliver
value to most customers.”

Our agents, brokers and other distribution systems have been
long-term partners in our success in delivering traditional
and innovative products and services to our clients. Berkley
supports its distribution partners in meeting the day-to-day
challenges that arise in the course of doing business, both big
and small, and in enhancing their relationships with clients.
Ongoing education and training for our distribution partners
on emerging risks and new products and services aids in the
development of their businesses and their people, ultimately
improving the customer experience. We actively support the
development of the next generation of insurance agents
and brokers, and look for opportunities to enhance their value
proposition as technology and direct distribution models
threaten the status quo.

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SUPPO RTI NG OUR DISTRIBUTIO N PARTNER S

62541Narrative

Supporting Our
Distribution Partners
in Times of Crisis

Connecting Virtually

When disaster strikes, no one is immune. Despite careful
and extensive disaster recovery planning, things can
and do sometimes go awry. We recognize the importance
of supporting our trusted partners, particularly when
they need it most. As the world shut down in early 2020
and some of our distribution partners were themselves
impacted, we were able to step in to fill the gaps. Just as
our insureds rely on us to meet our obligations, they
rely on their agents or brokers to help them navigate the
insurance process. Our distribution partners know they
can count on us, and when contingency plans or technol-
ogy failed, we pitched in to handle critical details and
essential tasks, freeing them up to address what went
wrong, while continuing to offer advice and service to their
clients. Today, most have sufficient hardware — laptops
and mobile devices — and remote connectivity systems
are standing up. We continue to work side by side with
our distribution partners through this crisis and beyond.

Developing strong connections with our distribution
partners is an important component of relationship
building and servicing our clients. Stay-at-home policies
implemented across the globe during the COVID-19
pandemic necessitated a rapid transition to virtual engage-
ment. While video meetings and phone calls became the
norm, we went a step further to offer agents innovative
technology to better serve and engage their clients, includ-
ing the use of artificial intelligence to perform virtual
underwriting inspections and drones for claims inspec-
tions. In addition, we introduced the Berkley Concert
Series as a way for Berkley distribution partners to connect
with clients in a fun way while maintaining social distance.
Agents, brokers and clients were invited to participate in
virtual concerts featuring popular artists. Operating units
and producers in turn designed their own virtual events
around the concert, creating further touchpoints during
the pandemic. The artists were not revealed until the concert
began, increasing the level of excitement as invitees
speculated on who it would be. And they were not disap-
pointed! Attendees were treated to amazing performances
by Train, Matchbox Twenty and Christina Aguilera.

Nearly

6,000 people virtually

attended each
concert

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• The number of people employed by insurance
agencies and brokers in the U.S. has increased
by more than 30% over the last 10 years.

•

1.2 million people work for insurance agencies,
brokers and other insurance-related enterprises.

Source: U.S. Bureau of Labor Statistics

Supporting Agents and
Brokers Through Education
and Development

Supporting our distribution partners through participa-
tion in industry trade associations, including education
and the development of the next generation of agents and
brokers, has engendered their trust and been an important
contributor to our long-term success. We participate in
organizations that provide education, development and
networking resources to various professional or business
segment groups, such as The Institutes, the Casualty
Actuarial Society and the Wholesale Specialty Insurance
Association, among many others. In addition, Berkley
is a Council Partner of the Council of Insurance Agents &
Brokers (CIAB), supports the Independent Insurance
Agents & Brokers of America, Inc. (The Big “I”) and is a
Trusted Choice® Member. We are also a sponsor of
the Young Agents program of the “The Big I,” which provides
education, networking and community for young insurance
professionals and newer agency and brokerage owners.
It hosts the Young Agents Leadership Institute, which
provides training in sales and leadership, and hosts an
annual summit for its members.

“Young agents are well on their way to
successful, lifelong careers as Trusted Choice
independent insurance agents.”

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Empowering
Our People

“Together, we bring the collective
power of diverse ideas and
skills. Everyone has the power
to make a difference.”

Our people are our greatest asset and our corporate culture
is the most important intangible value driver of our superior
long-term risk-adjusted returns and growth in stockholder
value. We empower our people to lead, to be accountable and
to thrive. We work nimbly, energized by a business structure
that brings proactive decision making to the local level —
localized with global resources. We are focused on creating a
respectful, rewarding, diverse and inclusive work environment
that allows our employees to build meaningful careers.
The success of these human capital management objectives
is essential to our strategy, as it is our people who drive our
success. We invest in their growth as individuals and profes-
sionals through training and engagement, as well as in their
well-being through robust health and wellness programs
and a commitment to diversity.

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EMP OWERI NG OUR PEOPLE

Engaging Our People
Throughout Our Work-
from-Home Journey

As it became apparent in the spring of 2020 that shut-
downs and social distancing would become the status quo
for the foreseeable future, we recognized that our current
initiatives that focused on employee health, safety and
productivity would not be enough to support our employ-
ees through these difficult and uncertain times and
maintain our culture. In addition to providing access to
emotional and mental well-being resources, we took further
steps to keep our employees engaged and connected
while maintaining our social distance. Among other things,
the human resources team developed a monthly flip-book
newsletter entitled Berkley’s Work from Home Journey,
journaling some of the creative and entertaining ways
individuals and their families are working, laughing, staying

fit and getting closer to one another, all while continuing
to physically distance. We celebrated holidays and
milestones, recognized frontline workers, volunteers and
the unsung heroes of IT who keep us all going, and pro-
moted our Innovation Through People initiative. We shared
the challenges of working from home, targeting those who
were trying to balance work with caring for children who
were experiencing new ways of learning, and soon learned
that those living alone who may have relied on their work-
place as a means of social interaction had their own unique
issues. Engagement has been high, with scores of colleagues
sharing their stories and the majority of our employees
reading each issue of the newsletter. We are reminded that
at Berkley, Everything Counts, Everyone Matters.®

“Thank you to all of you for sharing with us these
kind, supportive, creative and fun moments.
I am so grateful and proud to be on your team!”

• More than 3,000 employees read our flip-book

each month.

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Created by Daily icons
from the Noun Project

Fostering an
Innovative Mindset

Created by corpus delicti
from the Noun Project

Nurturing Our
Entrepreneurial
Spirit

We pursue innovation in a classically Berkley way —
with an emphasis on the contribution of every individual
employee. In 2017, we embarked on an ongoing innovation
journey that engages all employees and has a foundation
in the development of behaviors that foster an innovative
mindset to build upon our entrepreneurial culture and
roots. We have created a dedicated Innovation Through
People brand for innovation at Berkley, along with an
internal education and awareness campaign to deepen
employee engagement in this important pillar of our
organization. We have also built an online curriculum and
resource library to ensure the framework’s sustainability
and upgraded our tool for company-wide idea engage-
ment. The program is championed and supported at the
corporate level, while each operating unit has been tasked
with building its own framework for supporting our
innovation behaviors and building the processes neces-
sary to sustain an innovative practice and culture using
these tools. In 2021, we are focused on reframing our view
of failure to see it as a learning experience. To date, we
have tracked 13,139 innovative ideas, with 436 approved
for experimentation, 416 approved for implementation
and 739 implemented.

“Behavioral learning is so important to the
execution of ideas. You can’t skip culture and
go straight to the new process.”

Berkley’s long-standing tradition of empowering our
people and supporting them as they develop new ways to
serve our customers is deeply rooted in our entrepreneur-
ial culture and history. As an organization founded with a
mere $2,500 that has grown to over $8 billion in annual
revenue by founding 46 of our 53 operating units, we know
that good ideas need to be nurtured. In 2020, the team at
Berkley One piloted a new way to increase their new
business hit ratio. They recognized that abandoned quote
quality was high and that engaging with agents in real time
to help them improve the quotes was key to success.
So they set out to learn how to triage those abandoned
quotes to find the ones with the best potential for conver-
sion. An outstanding performer from its customer service
team was moved to the sales team and provided the
autonomy to work on this experiment full-time, using the
powerful information in Berkley One’s database to target
engagement with high precision. Berkley One’s agents
began thinking of the sales team as “guardian angels”
because of the speed and accuracy of their engagement,
which enabled them to efficiently close on a greater
percentage of new accounts. They then built a model that
optimizes the process by informing sales associates which
submissions they should engage on and the reason why
they should call to proactively engage. The project team is
now taking their show on the virtual road to share their
learnings with other Berkley operating units.

• 30% more accounts reviewed per month

• 44% less time reviewing submissions

•

106% increased new business production in
the first month

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Serving
Our Communities

“We exist as part of a greater
society and have always
believed in being supportive of
the communities that we are
part of, because in the long
run, our enterprise and all of
its stakeholders benefit.”

The culture of a successful business enterprise requires
many things. Among the most important elements is a
committed workforce — people who share a vision, not just
for the business’s operating objectives, but also for how it
serves its clients and where it fits into society. W. R. Berkley
Corporation’s long-standing traditions of community
involvement set the foundation for supporting people where
we live and work as we seek to enhance the human experi-
ence through donations of our time and resources. W. R.
Berkley Corporation and its operating units participate in
various national and global campaigns and support many
local nonprofit organizations in an effort to ensure tangible,
effective impacts from our contributions. The increased
challenges to all communities from the COVID-19 pandemic
have further spotlighted the importance of being an
engaged and responsible corporate citizen.

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SERVING OUR COMMUNITIES

62541Narrative

Created by Alec Dhuse
from the Noun Project

Sponsoring
Match Programs

Giving Through
Actions

The Company’s operating units have not only provided
financial support, but also organized volunteer efforts for
community organizations within their local communities
or for causes important to their business or a team
member. Combating food insecurity, providing children’s
assistance, healthcare, and diversity and inclusion are
common themes for volunteer efforts throughout the
organization. Near and dear to our hearts is helping
individuals impacted by the things we see in our everyday
business. For example, Kids’ Chance, which supports
children affected by a parent’s work-related injury or death
by helping to remove financial obstacles to pursuing their
educational dreams, has a direct connection to our
business. Going beyond annual donations, several of our
operating units host or participate in dedicated fundraising
events for the organization and many of our employees
hold leadership roles at the national level or at local
chapters. Additionally, in the shadow of COVID-19, we

In 2020, we sponsored two corporate matching programs.
When the pandemic first hit and countries and states went
into lockdown in the early spring of 2020, the Company
announced a $1 million donation to organizations focusing
on food insecurity, children’s assistance and COVID-19
response. In addition, the Company launched a matching
program for employee giving to these organizations,
resulting in combined giving of nearly $2 million.

Later in 2020, we launched a second matching program,
reemphasizing the importance — now more than ever
before — of supporting the communities where we live
and work. Each operating unit was encouraged to select
a charity with a local nexus as well as a humanitarian
component, such as food, education or healthcare. The
charitable match program matched one dollar for each
dollar donated up to a maximum of $10,000 at each
operating unit. With 53 operating units, this meant that if
each operating unit received $10,000 or more in donations
from employees for the charity nominated, W. R. Berkley
Corporation would match $530,000 in charitable dona-
tions. The corporate and match contributions were made
by the W. R. Berkley Corporation Charitable Foundation.

“Being part of a community means more than just
doing business there. Uniting together to help
others brings us closer as colleagues, sets the stage
for our culture and enriches our communities.”

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Created by Round Pixel
from the Noun Project

Partnering with
Local Communities

saw a prolonged and consistent effort on the part of our
team members — often at the expense of their own
personal welfare — to help people they often do not know.
At our operating units we have nurses who are volunteer-
ing in high-risk hospitals far from home; we have foster
moms who are delivering food and monitoring the well-
being of at-risk children; we have families who are working
as a team to produce 3D printed parts for personal
respirators and face shields for healthcare workers; and
we have people who are leaving their homes to deliver
food, shop and cook for neighbors, and donate blood.
And there are so many more who are just doing their part
to keep the world running as parents, family members and
neighbors. To all of you, we express our heartfelt thanks.

Total fundraising for Kids’ Chance for
the last 10 years exceeded:

$435,000

Many Berkley operating units support their local business,
art, cultural and scientific communities by developing
meaningful collaborations that strengthen their bonds
with local groups, as well as their connections to clients
and distribution partners. One such collaboration with
the Bruce Museum in Greenwich, Connecticut, offered
opportunities for interesting programming during 2020
as the museum pivoted to hosting events virtually.
The museum revamped its monthly thought leadership
program, creating an online experience with a wider
reach than the traditional in-person series. This year’s
topics covered a wide range, including climate change,
the artists of Instagram, sustainable farming and
“National Geographic” style photography. In addition to
co-sponsoring these and other events, Berkley draws
attention to the museum, its exhibits and programming
by inviting clients and distribution partners to participate,
as well as promoting them on social media. Together,
we continued to promote young area artists despite the
difficulties presented by the pandemic, through the
iCreate talent show, which showcases the talents of high
school students across the tristate area.

•

iCreate selected 55 artworks from over 850
submissions across 123 high schools throughout
Connecticut, New Jersey and New York, for
its annual art exhibition at the Bruce Museum.

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W. R. BERK LEY CORPORATION PE RFOR MA NC E V S. S& P 50 0®
Annual Percentage Change

In Per-Share Book Value of W. R. Berkley
Corporation with Dividends Included

In S&P 500® with dividends Included

Relative Results

Year

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Average Annual Gain — 1973-2020

Overall Gain — 1973-2020

Overall gain 1973-2020 with dividends compounded = 80,348%

(1)

50.0%

12.5%

29.6%

28.6%

24.4%

18.2%

9.4%

14.5%

-9.0%

-11.6%

-16.9%

59.6%

106.8%

23.5%

22.5%

13.2%

7.8%

20.8%

13.5%

16.7%

-10.8%

34.5%

7.9%

15.9%

1.9%

-18.1%

17.1%

7.6%

31.2%

26.7%

25.6%

21.9%

30.1%

16.3%

-5.6%

23.3%

15.4%

12.2%

14.8%

4.8%

14.8%

4.3%

15.7%

10.6%

4.8%

17.1%

8.6%

16.7%

(2)

-26.4%

37.2%

23.6%

-7.4%

6.4%

18.2%

32.3%

-5.0%

21.4%

22.4%

6.1%

31.6%

18.6%

5.1%

16.6%

31.7%

-3.1%

30.5%

7.6%

10.1%

1.3%

37.6%

23.0%

33.4%

28.6%

21.0%

-9.1%

-11.9%

-22.1%

28.7%

10.9%

4.9%

15.8%

5.5%

-37.0%

26.5%

15.1%

2.1%

16.0%

32.4%

13.7%

1.4%

12.0%

21.8%

-4.4%

31.5%

18.4%

12.7%

76,009%

14,764%

(1)-(2)

76.4%

-24.7%

6.0%

36.0%

18.0%

0.0%

-22.9%

19.5%

-30.4%

-34.0%

-23.0%

28.0%

88.2%

18.4%

5.9%

-18.5%

10.9%

-9.7%

5.9%

6.6%

-12.1%

-3.1%

-15.1%

-17.5%

-26.7%

-39.1%

26.2%

19.5%

53.3%

-2.0%

14.7%

17.0%

14.3%

10.8%

31.4%

-3.2%

0.3%

10.1%

-1.2%

-27.6%

1.1%

3.0%

3.7%

-11.2%

9.2%

-14.4%

-9.8%

4.0%

W. R. Berkley Corporation

S&P 500 ®

80,348%

81,000%

60,750%

40,500%

20,250%

1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Notes: W. R. Berkley Corporation’s book value per share has been adjusted for stock dividends paid from 1975 to 1983. Stock dividends were 6% in each year from 1975 to 1978, 14% in 1979, and 7% in
each year from 1980 to 1983. The Company has paid cash dividends each year since 1976.

26 W. R. Berkley Corporation 2020 Annual Report

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RE LATIVE STOCK PRICE PE RFORMA N CE

Cumulative Growth:

W. R. Berkley Corporation

33,110%

S&P 500®

3,750%

’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20

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Our Business

Today, as with yesterday and tomorrow, the combined expertise of
underwriting, risk management, claims handling and investing will deliver
outstanding risk-adjusted returns.

Insurance
The Insurance units underwrite predominantly
commercial insurance business, including excess
and surplus lines and admitted lines, and specialty
personal lines, throughout the United States, as
well as insurance business in the United Kingdom,
Continental Europe, South America, Canada,
Scandinavia, Australia, Asia and Mexico.

Reinsurance & Monoline Excess
The Reinsurance & Monoline Excess units write
reinsurance business on a facultative and treaty
basis, primarily in the United States, United Kingdom,
Continental Europe, Australia, the Asia-Pacific
Region and South Africa. Monoline Excess units
solely retain risk on an excess basis.

2020 Results

TOTAL REVENUES

$6.5B

PRE-TAX INCOME

$668M

TOTAL REVENUES

$1.0B

PRE-TAX INCOME

$206M

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Our Company

62541Narrative

W. R. Berkley Corporation, founded in 1967,
is one of the nation’s premier commercial
lines property casualty insurance providers.
Each of the operating units within Berkley
participates in a niche market requiring
specialized knowledge about a territory
or product.

Our competitive advantage lies in our long-
term strategy of decentralized operations,
allowing each of our units to identify and
respond quickly and effectively to changing
market conditions and local customer
needs. This decentralized structure provides
financial accountability and incentives to
local management and enables us to attract
and retain the highest-caliber professionals.
We have the expertise and resources to utilize
our strengths in the present environment,
and the flexibility to anticipate, innovate
and respond to whatever opportunities and
challenges the future may hold.

How We Are Different

Risk-Adjusted Returns
Management company-wide is
focused on obtaining the best
potential returns with a real
understanding of the amount of
risk being assumed. Superior risk-
adjusted returns are generated
over the insurance cycle.

Accountability
The business is operated with an
ownership perspective and a clear
sense of fiduciary responsibility
to shareholders.

People-Oriented Strategy
New businesses are started when
opportunities are identified and,
most importantly, when the right
talent is found to lead a business.
Of the Company’s 53 operating
units, 46 were developed internally
and seven were acquired.

Responsible Financial Practices
Risk exposures are managed
proactively. A strong balance sheet,
including a high-quality investment
portfolio, ensures ample resources
to grow the business profitably
whenever there are opportunities
to do so.

Transparency
Consistent and objective standards
are used to measure performance —
and, the same standards are used
regardless of the environment.

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Segment
Overview

62541Narrative

Each of our business segments — Insurance and Reinsurance & Monoline
Excess — comprises individual operating units that serve a market defined
by geography, products, services or types of customers.

Our growth is based on meeting the needs of customers, maintaining a
high-quality balance sheet and allocating capital to our best opportunities.

We combine capital with outstanding people and wrap it all in a culture
that is focused on optimizing risk-adjusted returns. It creates a permanent
competitive advantage that can only be acquired over many years with
consistent discipline.

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2020
Segment
Data

2020 Net Premiums Written by Major Line of Business (in percent)

INSURANCE:

$6.3B

Other Liability
Short-tail Lines
Workers’ Compensation
Commercial Automobile
Professional Liability

REINSURANCE &
MONOLINE EXCESS:

$915M

Casualty
Property
Monoline Excess

2020 Assets and Net Reserves (dollars in billions)

INSURANCE:

$9.0 reserves

$21.7 assets

REINSURANCE & MONOLINE EXCESS:

$2.6 reserves

$4.7 assets

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Investments

62541Narrative

Over the past few years, we have shortened the duration of our fixed income
portfolio to 2.4 years, while maintaining its high quality with an average
rating of AA-. As a result, there has been less volatility in our book value
from mark-to-market accounting and we are better able to manage the
uncertain interest rate environment.

We manage out portfolio for total return, including capital gains. As invest-
ment income is an important component of our economic model, we will
continue to seek out investment opportunities with above-average risk-
adjusted returns and to position our fixed-maturity portfolio to manage
the yield curve as well as the impact of potential inflation.

Breakdown of Fixed-Maturity Securities (including cash)

Investment Data (dollars in millions)

Corporate Bonds
State and Municipal Bonds
Asset-backed Securities
Cash and Cash Equivalents
Mortgage-backed Securities
Foreign Bonds
U.S. Government and
Government Agency Bonds

2019

2020

Cash and Invested Assets

Invested assets
Cash and cash equivalents

$18,473
$1,024

$18,482
$2,372

Total

$19,497

$20,854

Net Investment Income

$646

$584

Net realized and unrealized
gains on investments

$121

$103

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W. R. BERKLEY CORPORATION
2020 FINANCIAL INFORMATION

FORM

10-K

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62541 10K

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K

(Mark One)

☒

☐

ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934

For the fiscal year ended December 31, 2020
OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the transition period from ______ to ______.

Commission file number 1-15202

W. R. BERKLEY CORPORATION
(Exact name of registrant as specified in its charter)

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller
reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Non-accelerated filer

☒

☐

Accelerated filer

☐

Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.
7262(b)) by the registered public accounting firm that prepared or issued its audit report.

☐

☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ☐ No ☒

The aggregate market value of the registrant's common stock held by non-affiliates as of June 30, 2020, the last business day of
the registrant’s most recently completed second fiscal quarter, was $8,077,532,224.

Delaware

(State or other jurisdiction of
incorporation or organization)
475 Steamboat Road
(Address of principal executive offices)

22-1867895
(I.R.S. Employer Identification Number)

Number of shares of common stock, $.20 par value, outstanding as of February 11, 2021: 177,361,868

DOCUMENTS INCORPORATED BY REFERENCE

Greenwich, CT

06830
(Zip Code)

Portions of the Company’s definitive proxy statement, which will be filed with the Securities and Exchange Commission within
120 days after December 31, 2020, are incorporated herein by reference in Part III.

Registrant’s telephone number, including area code: (203) 629-3000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.20 per share

5.900% Subordinated Debentures due 2056

5.750% Subordinated Debentures due 2056
5.700% Subordinated Debentures due 2058

5.100% Subordinated Debentures due 2059

4.250% Subordinated Debentures due 2060

4.125% Subordinated Debentures due 2061

WRB

WRB-PC

WRB-PD
WRB-PE

WRB-PF

WRB-PG

WRB-PH

New York Stock Exchange

New York Stock Exchange
New York Stock Exchange

New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:
None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ☒ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.
Yes ☐ No☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was
required to submit such files). Yes ☒ No ☐

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(Mark One)

OF 1934

☒

☐

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the fiscal year ended December 31, 2020

For the transition period from ______ to ______.

Commission file number 1-15202

W. R. BERKLEY CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of

incorporation or organization)

22-1867895

(I.R.S. Employer Identification Number)

475 Steamboat Road

Greenwich, CT

(Address of principal executive offices)

06830

(Zip Code)

Registrant’s telephone number, including area code: (203) 629-3000

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.20 per share

5.900% Subordinated Debentures due 2056

5.750% Subordinated Debentures due 2056

5.700% Subordinated Debentures due 2058

5.100% Subordinated Debentures due 2059

4.250% Subordinated Debentures due 2060

4.125% Subordinated Debentures due 2061

WRB

WRB-PC

WRB-PD

WRB-PE

WRB-PF

WRB-PG

WRB-PH

None

Securities registered pursuant to Section 12(g) of the Act:

New York Stock Exchange

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

Yes ☒ No ☐

Yes ☐ No☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to

file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted

pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was

required to submit such files). Yes ☒ No ☐

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62541 10K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT

Large accelerated filer

Non-accelerated filer

☒

☐

Accelerated filer
☐
Smaller reporting company ☐
Emerging growth company ☐

☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ☐ No ☒

Number of shares of common stock, $.20 par value, outstanding as of February 11, 2021: 177,361,868

DOCUMENTS INCORPORATED BY REFERENCE

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SAFE HARBOR STATEMENT

ITEM

EX-4.1

EX-21

EX-23

EX-31.1

EX-31.2

EX-32.1

EX-101

PART I

BUSINESS

1A. RISK FACTORS

1B. UNRESOLVED STAFF COMMENTS

PROPERTIES

LEGAL PROCEEDINGS

4. MINE SAFETY DISCLOSURES

PART II

5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER

PURCHASES OF EQUITY SECURITIES

Not Applicable

7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

9A. CONTROLS AND PROCEDURES

9B. OTHER INFORMATION

PART III

10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

11. EXECUTIVE COMPENSATION

12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS

13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

14.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

PART IV

15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

16.

FORM 10-K SUMMARY

DESCRIPTION OF REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

LIST OF COMPANIES AND SUBSIDIARIES

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13a-14(a) /15d-14(a)

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13a-14(a) /15d-14(a)

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO 18
U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

INSTANCE DOCUMENT

SCHEMA DOCUMENT

CALCULATION LINKBASE DOCUMENT

LABELS LINKBASE DOCUMENT

PRESENTATION LINKBASE DOCUMENT

DEFINITION LINKBASE DOCUMENT

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SAFE HARBOR STATEMENT

UNDER THE PRIVATE SECURITIES

LITIGATION REFORM ACT OF 1995

This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. This document may

contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of

the forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,”

“potential,” “continued,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,”

“anticipates” or the negative version of those words or other comparable words. Any forward-looking statements

contained in this report including statements related to our outlook for the industry and for our performance for the year

2021 and beyond, are based upon our historical performance and on current plans, estimates and expectations. The

inclusion of this forward-looking information should not be regarded as a representation by us that the future plans,

estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties,

including but not limited to:

•

the cyclical nature of the property casualty industry;

the impact of significant competition, including new alternative entrants to the industry;

the long-tail and potentially volatile nature of the insurance and reinsurance business;

product demand and pricing;

claims development and the process of estimating reserves;

investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities,

including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable,

investment funds, including real estate, merger arbitrage, energy related and private equity investments;

the effects of emerging claim and coverage issues;

the uncertain nature of damage theories and loss amounts, including claims for cyber security related risks;

natural and man-made catastrophic losses, including as a result of terrorist activities;

the ongoing COVID-19 pandemic;

the impact of climate change, which may alter the frequency and increase the severity of catastrophe events;

general economic and market activities, including inflation, interest rates and volatility in the credit and capital

markets;

the impact of conditions in the financial markets and the global economy, and the potential effect of legislative,

regulatory, accounting or other initiatives taken in response to it, on our results and financial condition;

foreign currency and political risks (including those associated with the United Kingdom's withdrawal from the

European Union, or "Brexit") relating to our international operations;

our ability to attract and retain key personnel and qualified employees;

continued availability of capital and financing;

the success of our new ventures or acquisitions and the availability of other opportunities;

the availability of reinsurance;

our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019 ("TRIPRA");

the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us;

other legislative and regulatory developments, including those related to business practices in the insurance industry;

credit risk relating to our policyholders, independent agents and brokers;

changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies;

the availability of dividends from our insurance company subsidiaries;

potential difficulties with technology and/or cyber security issues;

the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and

other risks detailed in this Form 10-K and from time to time in our other filings with the Securities and Exchange

Commission (“SEC”).

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ITEM

5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER

PURCHASES OF EQUITY SECURITIES

7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL

SAFE HARBOR STATEMENT

PART I

BUSINESS

1A. RISK FACTORS

1B. UNRESOLVED STAFF COMMENTS

PROPERTIES

LEGAL PROCEEDINGS

4. MINE SAFETY DISCLOSURES

PART II

Not Applicable

OPERATIONS

DISCLOSURE

9A. CONTROLS AND PROCEDURES

9B. OTHER INFORMATION

PART III

11. EXECUTIVE COMPENSATION

STOCKHOLDER MATTERS

ITEM

EX-4.1

EX-21

EX-23

EX-31.1

EX-31.2

EX-32.1

EX-101

10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED

13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

14.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

PART IV

15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

16.

FORM 10-K SUMMARY

DESCRIPTION OF REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

LIST OF COMPANIES AND SUBSIDIARIES

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13a-14(a) /15d-14(a)

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13a-14(a) /15d-14(a)

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO 18

U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

INSTANCE DOCUMENT

SCHEMA DOCUMENT

CALCULATION LINKBASE DOCUMENT

LABELS LINKBASE DOCUMENT

PRESENTATION LINKBASE DOCUMENT

DEFINITION LINKBASE DOCUMENT

62541 10K

SAFE HARBOR STATEMENT
UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995

This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. This document may
contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of
the forward-looking statements can be identified by the use of forward-looking words such as “believes,” “expects,”
“potential,” “continued,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,”
“anticipates” or the negative version of those words or other comparable words. Any forward-looking statements
contained in this report including statements related to our outlook for the industry and for our performance for the year
2021 and beyond, are based upon our historical performance and on current plans, estimates and expectations. The
inclusion of this forward-looking information should not be regarded as a representation by us that the future plans,
estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties,
including but not limited to:

•

the cyclical nature of the property casualty industry;

the impact of significant competition, including new alternative entrants to the industry;

the long-tail and potentially volatile nature of the insurance and reinsurance business;

product demand and pricing;

claims development and the process of estimating reserves;

investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities,
including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable,
investment funds, including real estate, merger arbitrage, energy related and private equity investments;

the effects of emerging claim and coverage issues;

the uncertain nature of damage theories and loss amounts, including claims for cyber security related risks;

natural and man-made catastrophic losses, including as a result of terrorist activities;

the ongoing COVID-19 pandemic;

the impact of climate change, which may alter the frequency and increase the severity of catastrophe events;

general economic and market activities, including inflation, interest rates and volatility in the credit and capital
markets;

the impact of conditions in the financial markets and the global economy, and the potential effect of legislative,
regulatory, accounting or other initiatives taken in response to it, on our results and financial condition;

foreign currency and political risks (including those associated with the United Kingdom's withdrawal from the
European Union, or "Brexit") relating to our international operations;