Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity and Inclusion
• Philanthropy
• Sustainable Investment

Environmental Achievements

• 150% carbon emissions offset in 2021
• Tracks its operational carbon footprint (scope 1, 2 and 3) with the aim to reduce this over time as well as more than offsetting it in order to be climate positive
• Weighted average carbon intensity of investment portfolio of 43.8 tons CO2e/$m revenue

Social Achievements

• Committed to diversity & inclusion and closely monitors a range of metrics to ensure equal opportunities (e.g., pay gap and composition of the workforce at various levels)
• $1.2m charitable donations in 2021

Governance Achievements

• ESG review process included in daily underwriting decision-making (including specific exclusion policies)
• Signed up to a number of initiatives which seek to develop industry best practices for sustainable underwriting
• Continued push for tangible changes relating to ESG issues, such as developing the forced labour clause

Climate Goals & Targets

Environmental Challenges

• Russia/Ukraine conflict created uncertainty across classes with asymmetrical losses, accelerating rate momentum
• Ransomware attacks have risen exponentially and models demonstrate lack of agreement on tail risk
• Real inflation, including around building materials, is causing loss creep along with continued social inflation
• Catastrophe frequency and severity is rising, requiring rate rises just to keep pace
• Losses are not yet in the rear-view mirror, with significant volume of outstanding claims and litigation
• Reserving is deficient across accident years 2013-19

Mitigation Strategies

• Incorporate a cost inflation factor in our risk modeling to mitigate the effects of inflation
• Ongoing reinsurance portfolio optimization expected to reduce volatility
• Made the decision not to write traditional casualty classes

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Investment

Environmental Achievements

• 150% coverage of emissions in 2021, making the Group climate positive; committed to continuing to offset more than 100% of operational carbon emissions through the purchase of high-quality offsets (Plan Vivo certified).

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Loss activity in marine, aviation and transport insurance and miscellaneous financial loss business; market volatility, increasing interest rates and global macroeconomic events impacting investment returns; potential exposure to losses associated with the conflict in Ukraine and the Black Sea.

Mitigation Strategies

• Established additional loss reserves; maintains a high-grade investment portfolio with a primary focus on capital preservation; intra-group reinsurance agreement with FIBL to maintain its risk profile in line with FIID’s approved risk appetite; detailed reserving models developed with input from pricing, legal, underwriting and claims and an independent view obtained from external actuaries.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Increase in the frequency and severity of extreme weather events in the long term

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Solvency II

Certifications: Null

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed