Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented health-related measures during the COVID-19 pandemic, including protocols governing social distancing and the use of face masks, a flexible work-from-home policy, cleaning procedures, and limitations on in-person meetings.

Governance Achievements

• The current makeup of the Company's Board of Directors satisfies the Nasdaq Stock Market LLC's rules related to board diversity.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on workforce and operations, potential decreases in net premiums written, and future fluctuations in the investment portfolio.
• Climate change, extreme weather conditions, and catastrophic events could impact business operations and IT systems.
• Adverse changes in economic conditions related to real estate activity.
• Material losses resulting from fraud, defalcation, or misconduct by agents and providers.
• Dependence on North Carolina, Texas, Georgia, and South Carolina markets.
• Adverse deviation of actual claims experience from expected claims experience.
• Competition in the title insurance industry.
• Difficulties managing growth.
• Dependence on attracting and retaining key personnel and agents.
• Concentration in mortgage lending and potential reform of government-sponsored entities.
• Potential impairment charges for goodwill and intangible assets.
• Complex government regulations and potential changes.
• Downgrade from a rating agency.
• Title insurance rate regulation.
• Regulatory investigations of the title insurance industry.
• Dependence on distributions from insurance subsidiaries.
• Deterioration in financial markets affecting investment performance.
• Financial institution failures.
• Breaches and failures of information technology systems.
• Difficulties managing system or technological changes.
• Insufficient policies and procedures for risk mitigation.

Mitigation Strategies

• Modified business practices (employee travel, work locations, meetings) in response to COVID-19.
• Investing resources in maintaining IT security and adapting to evolving security threats.
• Maintaining cyber liability insurance coverage.
• Implementing policies and procedures to identify, analyze, and measure risks.
• Monitoring the credit quality of financial institutions holding deposits.
• Maintaining capital resources in excess of minimum requirements.
• Continuously reviewing and adjusting reserve estimates to reflect loss experience and new information.
• Regularly reviewing securities for impairment.
• Managing operating expenses such as staffing levels in response to market changes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Social Achievements

• The current makeup of the Company's Board of Directors complies with the Nasdaq Stock Market LLC's rules related to board diversity.

Climate Goals & Targets

Environmental Challenges

• The Company faces challenges in accurately predicting the consequences of occurrences such as inflation, recession, geopolitical and military conflicts, or political tensions preventing Congress from reaching timely agreements on future increases or suspension of the debt ceiling.
• Higher mortgage interest rates have historically had a negative impact on the demand and pricing of real estate, which has and could continue to adversely affect the Company’s operations and financial condition.
• Net premiums written for the Company decreased during certain periods of 2023 due to an overall decline in the level of real estate transaction volumes resulting from higher average mortgage interest rates.
• The Company may experience material losses resulting from fraud, defalcation or misconduct.
• Changes in the economic or regulatory environments in these states could have an adverse impact on the Company.
• Adverse deviation of actual claims experience from expected claims experience will result in lower net earnings.
• Competition affects the Company’s results of operations.
• The Company may encounter difficulties managing growth, which could adversely affect its operating results.
• The Company depends on its ability to attract and retain key personnel and agents, and its inability to do so could adversely affect its business.
• Mortgage lending is highly concentrated and changes in relationships with lenders or reform of government-sponsored entities could adversely affect the Company.
• Unfavorable economic or other conditions could cause the Company to record impairment charges for all or a portion of its goodwill and other intangible assets.
• The Company’s insurance subsidiaries are subject to complex government regulations. Changes in regulations may have an adverse effect on the Company’s results of operations.
• A downgrade from a rating agency could result in a loss of underwriting business.
• Title insurance rate regulation could have an adverse impact on the Company’s results of operations.
• Regulatory investigations of the title insurance industry by governmental entities could adversely impact the Company’s results of operations.
• The Company relies on distributions from its subsidiaries.
• Deterioration in financial markets may cause a decline in the performance of the Company’s investments and could have a material adverse impact on net income.
• Financial institution failures could adversely affect the Company.
• Breaches and failures of, and other disruptions to, information technology systems of the Company or its service providers may disrupt the Company’s operations, result in monetary losses and harm the Company’s reputation.
• Errors and fraud involving the transfer of funds may adversely affect the Company.
• The Company may encounter difficulties managing system or technological changes, which could adversely affect its financial and operating results.
• Policies and procedures for the mitigation of risk may not be sufficient.
• Our business could be adversely affected by climate change, severe weather conditions, potential pandemics, health crises, or the occurrence of another catastrophic event.
• Certain provisions in the Company’s organizational law, North Carolina law, organizational documents, and the Company’s shareholder rights plan may deter or discourage a takeover of the Company.

Mitigation Strategies

• The Company invests resources in maintaining the security of its systems and adapting to evolving security threats.
• As part of the Company’s risk management strategy, it has secured comprehensive cyber insurance coverage.
• The Company’s operating results and cash flows are heavily dependent on the real estate market. The Company’s business has certain fixed costs such as personnel; therefore, changes in the real estate market are monitored closely, and operating expenses such as staffing levels are managed and adjusted accordingly.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• severe weather conditions