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Financial report summary
?Risks
- Our success depends primarily on our ability to underwrite risks effectively and adequately price the risks we insure.
- Our geographic concentration ties our performance to the business, economic and regulatory conditions of certain states.
- A further downgrade in our financial strength or issuer credit ratings could result in a loss of business and could have a material adverse effect on our financial condition, results of operations and liquidity
- Unauthorized data access, cyber-attacks and other security breaches could have an adverse impact on our business and reputation.
- We are subject to comprehensive laws and regulations, changes to which may have an adverse effect on our financial condition and results of operations.
- Certain provisions of our organizational documents, as well as applicable insurance laws, could impede an attempt to replace or remove our management or members of our Board of Directors, prevent the sale of the Company or prevent or frustrate any attempt by shareholders to change the direction of the Company, each of which could diminish the value of our common stock.
- The ability of our subsidiaries to pay dividends may affect our liquidity and ability to meet our obligations.
Management Discussion
- In 2023, our loss and loss settlement expenses were 20.7 percent higher than 2022 and our net loss ratio increased 7.4 points. The primary driver for the increase was an increase in loss and loss settlement expenses of $80.4 million in commercial lines and $48.0 million in reinsurance assumed, which will be discussed in more detail in Net Loss Ratios by Line. In 2023, catastrophe losses were $64.2 million in both our direct and assumed reinsurance business as compared to $73.5 million in 2022.