REINSURANCE (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Premiums Written and Earned and Incurred Losses and LAE

Premiums written and earned and incurred losses and LAE are comprised of the following for the periods indicated:


	Years Ended December 31,
(Dollars in millions)	2025		2024		2023
Written premiums:
Direct	$	4,641	$	5,115	$	5,031
Assumed	13,065		13,117		11,606
Ceded	(2,193)		(2,418)		(1,907)
Net written premiums	$	15,513	$	15,814	$	14,730

Premiums earned:
Direct	$	4,921	$	4,977	$	4,733
Assumed	13,067		12,458		10,518
Ceded	(2,429)		(2,248)		(1,807)
Net premiums earned	$	15,560	$	15,187	$	13,443

Incurred losses and LAE:
Direct	$	4,352	$	5,465	$	3,209
Assumed	8,083		7,464		5,870
Ceded	(1,698)		(1,624)		(651)
Retroactive reinsurance adjustment (1)	122		—		—
Net incurred losses and LAE	$	10,859	$	11,305	$	8,427

(Some amounts may not reconcile due to rounding.)

(1) The consideration paid ($1.4 billion) exceeds the ceded loss reserves at the inception of the Agreement ($1.3 billion), as a result the Company recognized an immediate pre-tax loss of $122 million in earnings, in accordance with retroactive reinsurance accounting guidance. The Company recognized the loss by writing off the reinsurance recoverable of $122 million, which represents excess compensation for the uncertainty of future claims development, and is not a component of our best estimate of loss reserves.