Modified · Overview

Diluted net income per share of $7.7810.26 in the firstsecond quarter of 2026 increased by 35857% over diluted net income per share of $1.706.53 in the same period of 2025. Net income of $1.712.21 billion in the firstsecond quarter of 2026 increased by 33346% over net income of $395 million1.51 billion in the same period of 2025. The higher rate of increase in diluted net income per share reflected the impact of share repurchases in recent periods. The increase in income before income taxes in the firstsecond quarter of 2026 primarily reflected the pre-tax impacts of (i) lower catastrophe losses, (ii) net realized investment gains compared to higher net realized investment losses in the same period of 2025favorable prior year reserve development, (iii) higher net investment income and , (iv) higher net favorable prior year reserve development, partially offset by realized investment gains and (v) lowerhigher underwriting margins excluding catastrophe losses and prior year reserve development (“underlying underwriting margins”). Catastrophe losses in the firstsecond quarters of 2026 and 2025 were $761518 million and $2.27 billion927 million, respectively. Net favorable prior year reserve development in the firstsecond quarters of 2026 and 2025 was $413578 million and $378315 million, respectively. The lowerhigher underlying underwriting margins in the firstsecond quarter of 2026 were driven by BusinessPersonal Insurance and Bond & Specialty Business Insurance, partially offset by Personal Bond & Specialty Insurance. Income tax expense in the firstsecond quarter of 2026 was higher than in the same period of 2025, primarily reflecting the impact of the increase in income before income taxes.