In 2024, payouts reached a record high of $4.1 billion. Securities claims are long-tail risks; they take a long to time settle, so while comparing settlements in any given year is informative, it’s critical to assess and view larger trends. While 2025 is unlikely to match 2024, the median settlement amount has not dropped compared to last year, and the 75th percentile amount currently exceeds that of the 10 prior years.

A D&O carrier’s combined ratio measures underwriting profitability, which is driven by long-term loss development. TransRe and AM Best report that D&O claims from the 2016–2019 policy years have worsened, while more recent claims from 2020-2022 policy years look good and appear to be improving further. It’s too early to judge the development of 2023–2024 claims. As a result, D&O carriers may send seemingly contradictory messages to the 2026 market: on the one hand, reporting lower recent loss numbers, while on the other pushing for rate increases due to emerging risks on the horizon.