Climate Change Data

Markel International Insurance Company Limited

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced exposure to natural catastrophes through changes in the nature and mix of business written.
  • Nephila introduced new products that meet marketplace needs and desires for ESG and climate change products alongside traditional insurance coverages.

Social Achievements

  • Record results produced by employees despite the ongoing pandemic and challenging conditions.
  • Continued commitment to employee well-being and development.
  • Focus on serving customers fairly and providing quality products and services.

Governance Achievements

  • Strong leadership and management demonstrated through navigating challenging circumstances.
  • Consistent application of the Markel Style principles, emphasizing honesty, fairness, and long-term focus.

Climate Goals & Targets

Short-term Goals:
  • Continue on the path of the “10-5-1” initiative, aiming for $10 billion in annual premiums within five years at a 90% or better combined ratio.

Environmental Challenges

  • The ongoing pandemic created inconsistent health and safety conditions, changing workplace structures, supply chain disruptions, and other challenges.
  • Aggregate results from ILS initiatives did not meet expectations.
  • Cost of natural catastrophes continued to exceed historical averages.
  • Returns from Nephila operation were below initial expectations.
Mitigation Strategies
  • Changes in the nature and mix of business written to lower exposure to natural catastrophes and increase prices.
  • Refinement of processes and re-engineering of operations to improve profitability and lower volatility.
  • Nephila continues to increase rates for covering natural catastrophe exposures, refine product offerings, and tighten underwriting standards.
  • Continued focus on the “10-5-1” initiative to systematize and improve underwriting operations.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Natural catastrophes
Opportunities
  • Development of ESG and climate change products

Sustainable Products & Innovation

  • ESG and climate change insurance products offered by Nephila

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Climate change

Governance Achievements

  • Board Effectiveness Review undertaken by an external party during 2023

Climate Goals & Targets

Environmental Challenges

  • Increase in MIICL reserves, due to continuing growth, particularly in long tail classes. Increased identification of systemic risks driving greater dependencies.
  • Growth in premium income planned for 2024 leads to increased risk exposure.
Mitigation Strategies
  • Strengthened view of Insurance dependencies following a deep dive review in 2023 of the structure.
  • Increased benefit of reinsurance commission and recoveries (offset by increased RI premiums).
  • Increased reinsurance protection

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Solvency II

Third-party Assurance: KPMG LLP