The company faces risks from the cyclical nature of the property casualty industry, competition, volatile insurance/reinsurance business, claims development uncertainties, investment risks (fixed maturity securities, equity securities, funds, real estate, loans), economic/market conditions, foreign currency fluctuations, and litigation. Social inflation and COVID-19's uncertain impact on claims are also noted concerns. The adequacy of loss reserves is a key risk, subject to uncertainties in claim frequency and severity.
Financial Upside
The company experienced increased premiums written (10% in 9 months, 8% in 3 months) and net premiums earned (11% in 9 months, 11% in 3 months). Higher interest rates and a larger fixed maturity securities portfolio boosted investment income, contributing to a 19% increase in net income in the nine months. Favorable prior year reserve development and lower catastrophe losses also contributed to positive results. Growth in non-insurance businesses and insurance service fees also show potential.
