A new insurance provision for the 2026 World Baseball Classic has limited player participation across several national teams, making contract insurability central to tournament preparation.

Under the updated provision, player contracts cannot be insured after a player turns 37. Insurance coverage is required to protect major league teams from financial risk if a player is injured during the tournament. Although player contracts remain fully guaranteed, insurance shifts that financial exposure away from clubs.

Los Angeles Dodgers infielder Miguel Rojas became one of the most visible examples of how the provision affects roster decisions. Rojas, who turns 37 on Feb. 24, was denied insurance coverage and therefore could not receive approval to play for Venezuela. Rojas said the timing and structure of the rule prevented him from remaining available, even as a reserve option, during what he expects to be his final season.

Insurance approval has increasingly influenced roster construction ahead of the tournament. Several high-profile players have also been denied participation because their contracts were not insured. Those players include Venezuela’s Jose Altuve and Puerto Rico’s Francisco Lindor. Puerto Rico is also expected to be without Carlos Correa, Victor Caratini, Emilio Pagan, Jose Berrios, and Alexis Diaz.

As a result, Dr. Jose Quiles, president of the Puerto Rico Baseball Federation, publicly considered withdrawing Puerto Rico from the tournament. Puerto Rico is scheduled to host Pool A from March 6 to March 11 at Hiram Bithorn Stadium in San Juan.

Insurance for the World Baseball Classic is arranged by NFP, which has insured multiple iterations of the tournament through agreements with Major League Baseball and the MLB Players Association. The tournament itself pays the insurance policy. In prior tournaments, insurance coverage has directly affected club obligations. In 2023, for example, the New York Mets did not have to pay Edwin Diaz after he suffered a season-ending knee injury while representing Puerto Rico.

Players face varying levels of insurability based on injury classifications. According to sources familiar with the process, players are labeled as chronic, intermediate, or low risk. A player may be classified as chronic if they spent at least 60 days on the injured list the previous season, missed two of their team’s final three games due to injury, underwent surgery after the season, had more than one surgery during their career, or landed on the injured list on the final day of August.

Contract size also influences insurability. Despite Rojas being on a one-year, $5.5 million contract and not spending time on the injured list last season, his age alone disqualified his contract from coverage. The new provision states that once a player turns 37, their contract cannot be insured. If a player turns 37 midseason, coverage only applies through June.

Teams may still allow players to participate without insurance by assuming the risk themselves. The Detroit Tigers previously took that approach with Miguel Cabrera. It remains unclear whether the Dodgers will do the same for Rojas. With World Baseball Classic rosters due Tuesday and announcements scheduled for Thursday night, decisions must be made on a tight timeline.

Rojas said he received a HIPAA authorization form that would have allowed NFP to further review his medical history, but he received the request too late to pursue alternate solutions.

As preparations continue, insurance requirements remain a determining factor for player availability, shaping national rosters and influencing participation across the tournament.

Florida Insurance Commissioner Mike Yaworsky has approved additional auto insurance rate cuts heading into 2026. USAA filed an average 7% decrease in auto insurance rates, which will take effect by May 2026. The reduction is expected to generate more than $125 million in estimated annual savings for USAA’s Florida members.

The Florida Office of Insurance Regulation (OIR) continues to approve auto insurance rate cuts across the state. Over the past year, 42 personal auto insurance companies have filed for rate decreases. Of those, 32 filings occurred within the last six months.

“Going into the new year, the Office of Insurance Regulation is not slowing down on approving rate decreases or 0% increases from insurance companies,” said Commissioner Mike Yaworsky. “USAA is just one of many auto insurance companies that OIR is having productive conversations with to ensure reductions for policyholders. We are thrilled with the progress in the home and auto insurance market since the critical legislative reforms were passed. It is very clear that tort reform was the right thing to do, and we will continue to build on this success.”

USAA leadership emphasized the impact of the rate decrease for military members and their families.

“Every dollar counts for our active-duty service members, veterans, and their families — now more than ever,” said Randy Termeer, USAA P&C President. “This rate decrease reflects improving conditions in Florida’s insurance market and our ability to price competitively while maintaining the financial strength to support our members when they need us. Florida leaders have done great work to strengthen the insurance system and support a more stable, competitive market for Floridians.”

USAA attributes the rate decrease to Florida’s legislative reforms, which have helped stabilize the insurance market.

Earlier this month, Commissioner Yaworsky joined Governor Ron DeSantis to announce broader rate relief for Florida’s auto and home insurance markets. That announcement highlighted several recent auto insurance rate decreases, including:

• Florida Farm Bureau: Average decrease of 8.7%
• Progressive: Average decrease of 8%, in addition to refunding policyholders more than $1 billion
• State Farm: Average decrease of 10.1%. This marks State Farm’s third rate reduction since 2024, totaling more than 20% and exceeding $1 billion in statewide savings
• AAA: Three separate rate reductions during the year, lowering premiums by 15%. A fourth round of reductions will take effect in early 2026
• Allstate: Average decrease of 4% for 13.1 thousand drivers

Florida’s auto insurance market continues to show strong stability following tort reform. In 2024, Florida ranked first in the nation for the lowest personal auto liability loss ratio at 53.3%. This was the lowest recorded level for the state in the past 15 years.

Florida personal auto insurers also recorded the nation’s fifth-lowest incurred loss ratio at 57.5% in 2024. This represents a significant improvement from 73.2% in 2023 and 89.7% in 2022. Auto physical damage loss ratios also declined, falling from 112.0% in 2022 and 70.3% in 2023 to 66.7% in 2024.

The home insurance market in Florida is also stabilizing. Since the legislative reforms, 17 new insurance companies have entered the marketplace. OIR has received more than 185 residential filing requests for rate decreases or 0% increases.

Since January 2024, 39 companies have filed for home insurance rate decreases, while 48 companies have requested no change or a 0% increase. The 30-day average request for homeowners insurance rates is now a 2.3% decrease, compared to a 0.5% increase one year ago. The 180-day average request is down 0.7%, compared with a 7.9% increase one year ago.

Temperatures across the Philadelphia region remained below freezing on Sunday, extending a prolonged cold stretch as a coastal storm brought gusty winds, coastal flooding concerns, and the possibility of light snow showers, according to CBS Philadelphia.

A NEXT Weather Alert remains in effect through Monday due to bitter cold and dangerous wind chills. While the strongest impacts from the coastal storm were expected along the shore, conditions inland remained significant. Winds in Philadelphia were forecast to gust up to 30 mph on Sunday, keeping wind chills in the single digits despite actual air temperatures in the mid-20s.

Several advisories were in place as of Sunday. A wind advisory was issued for Cape May County until 4 p.m., as well as for Carbon and Monroe Counties until 1 a.m. Monday. Additionally, a coastal flood advisory was active for Atlantic and Cape May Counties until noon Sunday.

The region continues to experience an extended deep freeze. Sunday marked the ninth consecutive day with high temperatures below 32 degrees. Philadelphia has not seen temperatures rise above freezing since 7 p.m. on Friday, Jan. 23. This stretch matches the longest run of subfreezing days since 2004 and represents only the eighth time on record that the city has experienced nine or more consecutive days below freezing.

If temperatures remain below freezing on Monday, the region will reach 10 consecutive subfreezing days, officially making it the longest such stretch since 1979. Only two periods on record exceeded 10 days, both lasting 15 days, in February 1979 and February 1961.

Looking ahead, forecasters are tracking two opportunities for measurable snow this week. The first system is expected late Tuesday night into early Wednesday morning. A storm passing just south of the region may shift far enough north to bring a quick coating to several inches of snow. Tuesday also represents the best chance for temperatures to rise above freezing, although highs are expected to reach only around 33 degrees.

A second system is possible late Friday evening into early Saturday morning. A clipper system moving out of Canada could bring additional snowfall, potentially totaling several inches. Forecasters cautioned that it remains too early to determine whether conditions will fully align for significant accumulation.

Neither system currently appears as impactful as last weekend’s storm. However, the NEXT Weather team continues to monitor developments closely. Unseasonably cold conditions are expected to persist through next week and possibly beyond, keeping winter weather risks elevated across the region.

President Donald Trump said Friday that he will nominate Kevin Warsh to serve as the 17th chair of the Federal Reserve Board, replacing Jerome Powell when Powell’s term ends in May.

Warsh previously served as a Federal Reserve governor and was appointed to the Board of Governors in 2006 at age 35, making him the youngest person to serve in that role. He is now 55. Trump announced the nomination publicly and later reiterated his support during an Oval Office meeting.

Background On Kevin Warsh

Warsh is a former Fed governor who worked at the central bank during the financial crisis and played a role alongside then-Fed Chair Ben Bernanke and former New York Fed President Timothy Geithner. He later resigned from the Federal Reserve in 2011 due to policy disagreements related to crisis-response measures.

Before his Fed service, Warsh worked as an economist in the George W. Bush administration. He is currently a visiting fellow at Stanford University’s Hoover Institution.

Warsh was previously considered for senior economic roles during Trump’s first term, including the Fed chair position and Treasury secretary. He again emerged as a leading contender during the administration’s most recent search process.

Monetary Policy Record And Recent Statements

Throughout much of his career, Warsh built a reputation as an inflation-focused policymaker. During an April 2009 Federal Reserve meeting, held as unemployment surged during the Great Recession, Warsh expressed concern about inflation risks rather than deflation. Meeting minutes later documented his view that inflation posed greater upside risk at the time.

Warsh also criticized quantitative easing after the Great Financial Crisis, arguing that large-scale Treasury purchases risked raising inflation and expanding the Fed’s mandate beyond its core objectives.

More recently, Warsh has publicly supported lower interest rates and has called for changes to the Federal Reserve’s workforce. Economists and analysts have noted this shift in his public stance in recent months.

Selection Process For Fed Chair

Trump’s selection followed an extensive search that included roughly a dozen potential candidates, according to Treasury Secretary Scott Bessent, who led the process. Bessent said he was considered for the role but chose to remain Treasury secretary.

Other finalists included National Economic Council Director Kevin Hassett, Fed Governor Christopher Waller, and Rick Rieder of BlackRock. Trump publicly acknowledged those candidates after announcing Warsh as his nominee.

Senate Confirmation Process

The Senate Banking Committee will review Warsh’s nomination through a public hearing before sending it to the full Senate for a confirmation vote. Committee members are expected to question Warsh about his monetary policy views, including changes in his position on interest rates, as well as his past disagreements with Fed leadership.

Lawmakers may also raise questions about the Federal Reserve’s independence and Warsh’s prior departures from the central bank over policy disputes.

Additional Background

Warsh married Jane Lauder in 2002. She is a businesswoman and the granddaughter of Estée Lauder. Warsh is the son-in-law of Ronald Lauder, a prominent Republican donor. Warsh and Jane Lauder met while attending Stanford University.

As the nomination moves forward, Warsh’s prior experience, monetary policy record, and views on the Federal Reserve's role are expected to remain central to Senate deliberations.

Information Services Group (ISG), a global AI-centered technology research and advisory firm, has launched a new research study focused on the ecosystem of service providers that support insurance organizations. The study examines providers that help insurers manage daily operations while addressing complex enterprise requirements through consulting, outsourcing, and technology services.

The research reflects the changing priorities of insurance firms as they work to scale efficiently and respond to evolving operational needs. Insurers increasingly depend on providers with strong delivery capabilities and digital solutions that support faster execution, cost control, and long-term growth.

Scope and Timeline of the ISG Provider Lens Reports

ISG will publish the study findings in five ISG Provider Lens reports, including three global reports and two regional reports. The reports are:

• Insurance Consulting Services (Global)
• Insurance ITO Services (Global)
• P&C Insurance BPO Services (Global)
• L&R Insurance Services (North America)
• L&R Insurance Services (Europe)

ISG has scheduled the release of all June 2026 reports.

Enterprise buyers can use the reports to review existing vendor relationships, assess potential new engagements and compare available service offerings. At the same time, ISG advisors will use the research to recommend providers to ISG’s buy-side clients.

Industry Transformation and Provider Partnerships

Insurance organizations across global markets remain at varying stages of transformation. Many firms continue to reinvent their business models by adopting next-generation technologies designed to improve operational resilience and business outcomes.

At the same time, insurers are forming partnerships with consulting, outsourcing, and technology service providers to support and accelerate these initiatives. These partnerships help organizations balance long-term expansion goals with near-term operational demands. They also support differentiation through improvements in policyholder experience and innovation.

Iain Fisher, director at ISG, said insurance firms are prioritizing scalability and efficiency as their requirements change. He noted that insurers rely on providers that can deliver strong execution and apply digital solutions that reduce costs and support sustained growth.

Research Methodology and Provider Participation

ISG has distributed surveys to more than 120 providers that serve the insurance industry. The research team is working with ISG’s global advisory organization to develop five reports, each featuring one or more quadrants.

The quadrants represent consulting, business process outsourcing, IT outsourcing, and life and retirement services that insurance enterprises currently purchase. ISG bases these evaluations on its direct experience working with enterprise clients.

Insurance Consulting Services Report

The Insurance Consulting Services report will evaluate providers that support insurers throughout their transformation initiatives. The report includes one quadrant:

Insurance Consulting Services
This quadrant evaluates providers that deliver specialized advisory services to help insurance organizations make informed operational decisions. ISG assesses these providers based on their ability to deliver innovative consulting services through multiple engagement models and ecosystem partnerships.

Insurance ITO Services Report

The Insurance ITO Services report focuses on providers that help insurers manage complex, multi-service IT environments. The report includes one quadrant:

Insurance ITO Services
This quadrant assesses providers that offer traditional and modern IT outsourcing services to insurance organizations. ISG evaluates these providers on their ability to optimize costs, enhance profitability, and support operational engagement through systems integration and business transformation.

P&C Insurance BPO Services Report

The P&C Insurance BPO Services report addresses the property and casualty insurance segment, which represents a significant area for BPO adoption. The report includes one quadrant:

P&C Insurance BPO Services
This quadrant evaluates providers that deliver outsourcing services for property and casualty insurers, including consulting and managed services. These providers manage insurance processes using digital tools such as intelligent automation and artificial intelligence to improve operational efficiency.

L&R Insurance Services Reports

The L&R Insurance Services reports examine the life and retirement segment, with a focus on integrating BPO and ITO into business process-as-a-service. These services are typically delivered through licensed third-party administrators.

The study includes two quadrants:

L&R Insurance BPO Services
This quadrant covers providers that deliver life and retirement insurance operations outsourcing, including customer care, underwriting and claims processing. ISG evaluates providers on their ability to deliver managed services across the L&R value chain and execute multiple BPO engagements. This quadrant appears in both the North America and Europe regional reports.

L&R Insurance TPA Services
This quadrant assesses providers that offer third-party administrator services for life, annuity, and supplemental insurance products. Providers demonstrate expertise in technology enablement through processing platforms and digital technologies. This quadrant appears only in the North America regional report.

Geographic Coverage and Report Authors

The study examines the global insurance services market and analyzes products and services available worldwide, in North America, and in Europe. ISG analysts Ashish Jhajharia and Sandhya Hari Navage will serve as the report authors.

ISG has published a digital brochure listing identified providers and providing additional details about the study. Companies that are not currently listed as insurance service providers may contact ISG to request inclusion.

Expanded Customer Experience Data

All 2026 ISG Provider Lens evaluations include expanded customer experience data. This data measures actual enterprise experience with specific provider services and solutions. ISG bases this information on its continuous customer experience research program.

About ISG Provider Lens Research

The ISG Provider Lens Quadrant research series combines data-driven research and market analysis with insights from ISG’s global advisory team. Enterprises use the research to support sourcing decisions, while ISG advisors rely on the reports to validate market knowledge and guide client recommendations.

The research currently covers providers operating globally, across Europe and in markets including the United States, Canada, Mexico, Brazil, the United Kingdom, France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore and Malaysia. ISG plans to add additional markets in the future.

About ISG

ISG is a global AI-centered technology research and advisory firm and trades on the Nasdaq under the symbol III. The firm serves more than 900 clients, including 75 of the world’s top 100 enterprises.

Founded in 2006, ISG focuses on technology and business services and applies proprietary market data and provider ecosystem expertise to help organizations achieve operational excellence and growth. ISG employs approximately 1,600 professionals worldwide who work collaboratively to help clients maximize the value of their technology investments.

The January 2025 wildfires in Los Angeles revealed persistent challenges in insurance claims handling, coverage availability, and regulatory oversight, according to homeowners, advocacy groups, insurers, and government officials.

Claims Handling After Total Losses

Some wildfire survivors reported significant delays after filing claims, even in cases of total loss. While initial payments for temporary living expenses were issued promptly, subsequent stages of the claims process slowed.

Policyholders described being required to negotiate itemized valuations for personal property rather than receiving full policy limits. Claims were reassigned to multiple adjusters, requiring repeated documentation and restarting negotiations. Disputes over property valuations and rebuilding estimates were common, with some rebuilding funds held in escrow pending settlement and not accounting for architectural or permitting costs.

Broader Patterns Documented

These experiences align with findings from the Department of Angels, a nonprofit formed after the fires. Nearly eight in 10 surveyed homeowners reported obstacles such as multiple adjusters, low estimates, disputes over property inventories, and poor communication. Homeowners with partial damage reported greater frustration than those with total losses.

Complaints documented by advocacy groups and local activists have focused largely on State Farm and California’s Fair Plan, the state’s insurer of last resort.

Insurer Response and Market Conditions

State Farm said it has paid more than $5 billion on approximately 13,500 wildfire-related claims and expects total payouts to reach between $6 billion and $7 billion. The company cited the complexity of disaster claims and stated it remains committed to addressing customer concerns.

Insurers have argued that climate-driven catastrophe losses require higher premiums. In 2023, several carriers stopped issuing new homeowner policies in fire-prone areas of California, citing a misalignment between price and risk. Although regulators approved rate increases, policy cancellations continued.

A New York Times investigation found that insurer requirements to continue writing policies in “distressed” areas were met through broad geographic definitions that did not necessarily include high-risk fire zones.

Profitability and Investment Income

Despite claims disputes, the U.S. insurance industry reported $169 billion in profits last year and is projected to post another strong year in 2025. Much of this income came from investment returns rather than underwriting performance.

Industry data show underwriting losses in nine of the last 15 years, while overall profitability remained positive due to investment income.

Regulatory and Enforcement Scrutiny

Consumer advocates have criticized the California Department of Insurance for failing to enforce existing laws following the wildfires. Insurance Commissioner Ricardo Lara previously acknowledged that his department had been pressured by the industry on climate-related accommodations, including rate increases.

At the local level, Los Angeles County launched an investigation into State Farm’s compliance with state insurance laws. The county demanded documentation related to wildfire claims handling and warned of potential fines. Advocates reported that some delayed claims advanced after the investigation was announced.

Smoke Damage and Climate Loss Trends

Advocates also reported concerns about insurer handling of smoke-damaged properties, including limited testing for toxins. In prior years, California’s Fair Plan used a policy declaring homes safe if smoke damage was not visible or detectable, a practice later ruled illegal.

According to Aon, global insured losses from natural catastrophes reached $145 billion last year, exceeding the 21st-century average by 54 percent. In the first half of 2025 alone, losses surpassed $100 billion. Industry data indicate wildfires account for about 5% of catastrophic claims, compared with 12% for hurricanes and 40% for tornadoes and other convective storms.

Despite market commentary suggesting a pullback from U.S. assets, foreign investment in U.S. stocks and bonds increased in 2025. As Scott Wren notes in Sell America?, a January 28, 2026 Market Commentary from Wells Fargo Investment Institute, data from the U.S. Treasury show that foreign investors purchased a net $1.6 trillion in U.S. securities during the year. That total marked a record high, with nearly half of the inflows directed toward equities.

At the same time, auctions of U.S. Treasury debt continued to see consistent demand from foreign buyers. These inflows coincided with a series of all-time highs across major U.S. equity benchmarks, including the S&P 500 Index and the Dow Jones Industrial Average.

Economic Performance Supported Investor Confidence

According to the report, the relative strength of the U.S. economy played a central role in sustaining foreign investment. The American economy outperformed many developed market peers, supported by resilient consumer spending and historically low unemployment.

Consumer activity accounts for nearly 70% of the U.S. gross domestic product, and spending levels exceeded expectations during the year. In addition, capital expenditures tied to artificial intelligence remained strong. Wells Fargo Investment Institute expects U.S. economic growth of 2.4% for the current year.

In contrast, the commentary notes that China experienced a structural economic slowdown driven by weaker consumer demand. While growth rates in Europe and Japan improved, they remained behind the U.S. pace.

Market Size and Liquidity Differentiated the U.S.

The report also highlights the scale and liquidity of U.S. financial markets as a key factor attracting global capital. The United States maintains the world’s largest market for marketable Treasury and corporate debt. Although the European Union and China rank second and third, their combined markets are smaller than the U.S. market.

According to the commentary, this depth allows U.S. markets to absorb large capital inflows more efficiently. Smaller markets, by comparison, can become overwhelmed more quickly, which may drive valuations to extremes.

Corporate Earnings and Innovation Remained a Draw

Corporate performance continued to support investor interest. The United States remains home to most of the world’s largest capitalization companies, particularly in sectors such as artificial intelligence, biotechnology, and defense.

The S&P 500 Index recorded three consecutive years of record earnings, and the report expects a fourth consecutive year in 2026. The commentary also cites enhanced corporate and consumer tax benefits, along with deregulation, as factors expected to support earnings performance during the year.

Structural Factors Continued to Attract Global Capital

Wells Fargo Investment Institute attributes ongoing foreign investment to several long-standing characteristics of the U.S. market. These include deep and liquid financial markets, corporate innovation, transparency, and the rule of law.

The report emphasizes that forecasts and projections are not guaranteed and remain subject to change. It also reiterates that all asset classes carry risk, including market volatility for equities and interest rate and credit risks for bonds.

ESPN will expand its coverage of the Farmers Insurance Open as part of its 2026 PGA TOUR Season programming, with early-round broadcasts airing on its primary linear channel beginning Thursday, Jan. 29. The tournament takes place at Torrey Pines Golf Course in San Diego, California.

This marks the first time in 20 years that a PGA TOUR event will air on ESPN’s primary linear network. The expanded coverage adds to ESPN’s broader golf media portfolio, which includes cross-platform distribution across television, streaming, and digital platforms.

For the first and second rounds, ESPN will air the PGA TOUR LIVE main feed from 12 p.m. to 3 p.m. ET on Thursday and Friday. Viewers can also access the same coverage on the ESPN App. Thursday’s broadcast window coincides with Brooks Koepka’s return to the PGA TOUR.

In addition to ESPN’s linear broadcast and the ESPN App, Disney+ and Hulu subscribers will have access to the main feed coverage on Thursday directly within their respective streaming apps. PGA TOUR LIVE coverage will continue through Sunday’s final round, with streaming available on the ESPN App.

Featured Player and Group Coverage

Brooks Koepka, a nine-time PGA TOUR winner, will appear in both the main feed coverage on ESPN and the ESPN App, as well as in featured group coverage available on the ESPN App during Thursday and Friday. His participation represents one of the notable player storylines during the opening rounds of the tournament.

Alongside Koepka, five players ranked among the top 20 in the world will be featured during the first two rounds through PGA TOUR LIVE coverage on the ESPN App. This featured group programming allows viewers to follow specific players more closely throughout their rounds.

Featured Hole Coverage

The ESPN App will also offer featured hole coverage, providing live access to all four par-3 holes at Torrey Pines. These include holes 3, 8, 11, and 16. The third hole, known for its scenic setting, will be included as part of this coverage.

This approach ensures continuous visibility of par-3 play throughout the tournament’s early rounds. Coverage for Saturday and Sunday will follow a similar format, although final schedules will depend on pairings and tee times, which will be announced later.

PGA TOUR LIVE and Media Rights Context

PGA TOUR LIVE on the ESPN App delivers more than 4,300 live and exclusive hours of golf coverage during the PGA TOUR season. The service covers 34 tournaments in 2026, including all eight of the TOUR’s Signature Events.

The PGA TOUR LIVE offering operates under the PGA TOUR’s nine-year domestic media rights agreement, which the organization announced in March 2020. The agreement outlines long-term distribution arrangements across ESPN platforms and supports a combination of live tournament coverage and supplemental viewing options.

ESPN App Distribution

ESPN distributes its live sports programming, studio shows, and original content through the ESPN App, which serves as a centralized platform for its networks and services. The app supports access across mobile devices and connected TVs and includes features such as multiview viewing, synchronized second-screen experiences, and personalized content feeds.

The ESPN App also integrates live statistics, fantasy sports tools, and betting-related information from DraftKings, along with access to sports merchandise. These features are available regardless of whether users subscribe directly or access the app through a traditional pay TV provider.

Bundled subscription options remain available, including a limited-time offer for the ESPN Direct-to-Consumer Unlimited plan combined with Disney+ and Hulu. Additional details are available through ESPN’s streaming platform.

United Parcel Service said it will eliminate up to 30,000 jobs and close 24 additional facilities in 2026 as it continues to reduce delivery volume for Amazon and to restructure its network. The announcement came alongside UPS's fourth-quarter earnings results, which exceeded Wall Street expectations, and a 2026 revenue forecast that surpassed analyst estimates. UPS shares rose 4% in midday trading following the release, while FedEx shares gained 2.6%.

Continued Reduction of Amazon Volume

UPS is in the final phase of its Amazon-accelerated glide-down plan. Chief Executive Officer Carol Tome said the company intends to reduce Amazon volume by another 1 million packages per day during 2026 while continuing to reconfigure its delivery network.

In January 2025, UPS announced it would accelerate plans to cut millions of low-margin deliveries tied to Amazon, its largest customer and a growing logistics competitor. At the time, UPS described the business as dilutive to margins. The company and its competitors have faced persistently soft demand across the delivery sector.

Workforce Reductions Planned for 2026

UPS said the planned job reductions will occur through attrition and another voluntary buyout offer for full-time drivers. Chief Financial Officer Brian Dykes said the company does not plan to implement layoffs.

The company eliminated 48,000 jobs in 2025, launched driver buyouts, and closed operations at 93 facilities as Amazon's shipping volume declined. Many of the upcoming reductions will come from not filling roles left vacant by part-time employees who leave, according to Dykes.

UPS reported approximately 490,000 employees in its 2024 annual report, including nearly 78,000 management employees. Updated employment figures for 2025 were not immediately available. The workforce is unionized.

Revenue Outlook and Volume Trends

UPS projected 2026 revenue of $89.7 billion, compared with $88.7 billion in 2025. Analysts surveyed by LSEG expected nearly $88 billion.

The company said it expects revenue to decline in the first half of 2026 as it completes the Amazon glide-down, then rise sequentially in the second half once those reductions are finalized.

Separately, UPS is working to stabilize shipping volumes following the end of U.S. duty-free de minimis shipments from China-linked discount retailers such as Shein and Temu.

Fourth-Quarter Performance

UPS reported fourth-quarter consolidated revenue of $24.5 billion, exceeding analyst estimates of $24 billion. On an adjusted basis, the company posted earnings of $2.38 per share for the quarter ended Dec. 31, compared with expectations of $2.20 per share.

Revenue per piece rose despite lower overall shipment volumes. In the U.S. domestic segment, revenue per piece increased 8.3%. International revenue per piece rose 7.1%, supported by the company’s focus on higher-margin shipments.

Excluding Amazon, peak holiday season volume produced mixed results. Small and medium-sized business shipments performed slightly better than expected, while large retailer volume came in weaker year over year, Dykes said.

Fleet Retirement and Related Charge

UPS also confirmed that it will retire its remaining MD-11 cargo aircraft by the end of 2025, accelerating a previously announced plan. The retirement followed a fatal crash involving an MD-11 aircraft in November. Replacement Boeing 767 aircraft are already scheduled for delivery.

The company recorded a non-cash, after-tax charge of $137 million related to the MD-11 fleet retirement.

Credit fund Enosis Capital has reached an agreement with AXA XL to provide insurance coverage supporting a new $3 billion pipeline of debt-for-nature transactions. According to Reuters, the partnership is expected to underpin a series of deals over the next four years, with the first transaction anticipated within the next six to nine months.

Debt-for-nature swaps are financial arrangements designed to help lower-income countries redirect funds toward conservation efforts. These deals typically replace existing government debt with lower-cost financing, enabling countries to allocate more resources to ecosystems such as coral reefs and rainforests.

Recent examples in Belize, Barbados, and Ecuador’s Galapagos Islands have contributed to growing awareness of the structure. However, market activity slowed over the past year. Reuters reported that changes at key institutions followed the return of U.S. President Donald Trump, a climate change skeptic, which contributed to a temporary reduction in deal volume.

Despite that slowdown, countries continue to show interest in using debt swaps. As a result, specialist finance and insurance firms are increasingly stepping into roles long considered essential to the market’s expansion.

Enosis Capital co-founder Ramzi Issa said broader private sector participation is necessary for debt-for-nature transactions to scale. Issa formed Enosis Capital in late 2024 after working on debt-for-nature swap structuring at Credit Suisse.

He said the partnership with AXA XL is central to Enosis Capital’s approach. Under the agreement, AXA XL will provide political risk insurance and related coverage. These forms of insurance are intended to reduce risk and support lower borrowing costs for participating countries.

Issa said Enosis Capital aims to complete more than a dozen debt-related transactions over the next four years as part of its $3 billion pipeline. He expects one deal to close within six to nine months and another before the end of the year. He declined to identify the countries involved, citing sensitivities in debt markets.

While the first transaction will not follow a traditional debt-for-nature swap structure, Issa said it will incorporate similar credit enhancements. These include risk insurance mechanisms that play a key role in keeping financing costs manageable.

The AXA XL agreement also forms part of a broader collaboration with the Debt For Nature Coalition. Coalition members include Conservation International, the World Wildlife Fund, and Re:wild, an organization backed by actor Leonardo DiCaprio.

AXA XL executives Jeff Abramson and Stuart Barrowcliff described debt swaps as a growth area for the insurer. AXA XL has underwritten multiple debt-for-nature transactions over the past decade. Most recently, the firm played a significant role in a Bahamas transaction completed in late 2024. In that deal, AXA XL insured $30 million of a $300 million loan.

Abramson said the partnership with Enosis Capital aims to address the complexity of debt-for-nature transactions. These deals often require extended negotiation periods and can take years to finalize. He said the collaboration seeks to make the process more systematic and reduce execution timelines.

According to Abramson, streamlining these structures could help accelerate deal development while maintaining the risk protections necessary for both borrowers and financial participants.