Lack of Volatility in Results and Excess Capital Returned to Shareholders slide image

Lack of Volatility in Results and Excess Capital Returned to Shareholders

Forward-Looking Information This is a "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2021 and beyond, are based upon the Company's historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: • the ongoing COVID-19 pandemic, including the related impact on the U.S. and global economies; • the cyclical nature of the property casualty industry; • • • the impact of significant competition, including new alternative entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy related and private equity investments; • the effects of emerging claim and coverage issues; • the uncertain nature of damage theories and loss amounts; natural and man-made catastrophic losses, including as a result of terrorist activities, epidemics or pandemics, such as COVID-19; • the impact of climate change, which may increase the frequency and severity of catastrophe events; • • • • • • general economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response, on our results and financial condition; foreign currency and political risks (including those associated with the United Kingdom's withdrawal from the European Union, or "Brexit") relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; Confidential • the availability of reinsurance; • our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019; • the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; • other legislative and regulatory developments, including those related to business practices in the insurance industry; • credit risk related to our policyholders, independent agents and brokers; • • the availability of dividends from our insurance company subsidiaries; • • • changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; potential difficulties with technology and/or cyber security issues; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2021 and beyond to differ materially from those expressed in any forward- looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Forward- looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.
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