Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Competition for business in our industry, including from specialty insurance companies, standard insurance companies and MGAs, is intense.
• Inability to maintain our strategic relationship with AmFam would materially adversely affect our business.
• A decline in AmFam’s financial strength rating or financial size category may adversely affect our financial condition and results of operations.
• Our losses and loss expense reserves may be inadequate to cover our actual losses, which could have a material adverse effect on our financial condition, results of operations and cash flows.
• We rely on third-party data, including in our BRATs, and inaccuracies in such data could adversely impact our ability to estimate losses and manage risks.
• Unexpected changes in the interpretation of our coverage or provisions, including loss limitations and exclusions, in our policies could have a material adverse effect on our financial condition and results of operations.
• Our reinsurers may not reimburse us for claims on a timely basis, or at all, which may materially adversely affect our business, financial condition and results of operation.
• Excessive risk taking could negatively affect our financial condition and business.
• Adverse economic factors, including recession, inflation, periods of high unemployment or lower economic activity could result in the sale of fewer policies than expected or an increase in the frequency of claims and premium defaults, and even the falsification of claims, or a combination of these effects, which, in turn, could affect our growth and profitability.
• Performance of our investment portfolio is subject to a variety of investment risks, including market and credit risks, that may adversely affect our financial results.
• We are subject to extensive regulation, which may adversely affect our ability to achieve our business objectives.
• We could be adversely affected by the loss of one or more key personnel or by an inability to attract and retain qualified personnel.
• We could suffer security breaches, loss of data, cyberattacks and other information technology failures and are subject to laws and regulations concerning data privacy and security that are continually evolving.

Mitigation Strategies

• We strategically purchase reinsurance through pro rata and excess of loss reinsurance agreements on a treaty or facultative basis with a goal of protecting our capital and minimizing volatility in our earnings from severity events.
• We have implemented security measures designed to protect against breaches of security, such as business contingency plans and other reasonable plans to protect our systems, whether housed internally or through third-party cloud services.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• severe weather conditions, earthquakes and man-made catastrophes