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New words:
aware, Belgium, bifurcated, breach, category, cessation, Clarify, Commencing, corrupt, coupon, deciding, description, disaggregated, document, documentation, domestic, East, engineer, ensure, entirety, entity, evolving, explanation, freestanding, frequency, guidance, identification, interpretation, judicial, landing, low, Midco, Middle, multinational, national, NIFO, nonqualifying, objective, OECD, outsourced, peaking, person, Pillar, precluded, Presidential, pretax, proactively, proposing, reached, reconciling, regularly, relationship, remitted, residual, resilient, resolve, revaluation, revenue, roll, rose, single, SiriusPoint, soft, SSHL, Strength, technical, temporary, testing, threshold, tighter, title, Topic, unplanned, unrecognized, unrestricted, violation, wholly
Removed:
accident, accretion, achieving, AG, annually, approach, approximation, authorized, auto, banking, borrowed, caption, competition, comprise, Compulsory, consistency, controlling, CTP, DAC, defer, delay, deny, discounting, diversified, efficient, enhancement, existed, exited, expanded, experienced, extended, gate, Guideline, implementation, improvement, inconsequential, incorporate, instability, Introduce, investor, legislative, leverage, LOC, methodology, navigating, negatively, observed, obtaining, occur, October, originally, partial, posing, potentially, protect, proximity, RACQ, redeployment, regional, remeasuring, renewed, repaid, replicate, repurchasing, reserving, responsive, retirement, SE, seasoned, sequential, serving, simultaneously, stability, step, Suisse, supported, tailed, Targeted, tightening, traded, transition, treated, trend, undertook, updated, upper, utilized, vehicle, voluntarily, widening
Financial report summary
?Risks
- Inadequate loss reserves could reduce our net earnings and capital surplus, which could have a materially adverse impact on our results of operations and financial condition.
- We may not be able to sustain our growth through acquisitions.
- We may not be able to realize the anticipated benefits of acquisitions, which may result in underperformance relative to our expectations and have a material adverse effect on our business, financial condition or results of operations.
- Climate change may have an adverse impact on the returns from our run-off business as well as our investments, which could have an adverse effect on our results of operations or financial condition.
- U.S. tax reform legislation, various international tax transparency and economic substance initiatives, and possible future tax reform legislation and regulations could materially affect us and our shareholders.
- We might incur unexpected U.S., U.K., Australia, or other tax liabilities if companies in our group that are incorporated outside those jurisdictions are determined to be carrying on a trade or business in such jurisdictions.
- The amount of statutory capital that we must hold in order to maintain our credit ratings and meet certain regulatory requirements can vary significantly and is sensitive to several factors.
- We may require additional capital liquidity in the future that may not be available or may only be available on unfavorable terms.
- Our reinsurance subsidiaries are often required to provide collateral to ceding companies pursuant to their reinsurance contracts. Their ability to conduct business could be significantly and negatively affected if they are unable to do so or if any letters of credit posted as collateral cannot be renewed or are drawn upon by a ceding company.
- Reinsurers may not satisfy their obligations to our reinsurance subsidiaries, which could result in significant losses or liquidity issues for us.
- We are dependent on the ability of our subsidiaries to distribute funds to us.
- Fluctuations in currency exchange rates may cause us to experience losses.
- The value of our investment portfolios and the investment income that we receive from these portfolios may decline materially as a result of market fluctuations and economic conditions.
- Our investments in alternative investments, strategic investments in joint ventures and/or entities accounted for using the equity method may be illiquid and volatile in terms of value and returns.
- The valuation of our investments may include methodologies, estimations and assumptions that are subject to differing interpretations and could result in changes to investment valuations that may materially adversely affect our financial condition or results of operations.
- The nature of our liquidity demands and the structure of our investment portfolios may adversely affect the performance of our investment portfolio and financial results, as well as our investing flexibility.
- Insurance laws and regulations can restrict our ability to operate, and any failure to comply with these laws and regulations, or any investigations, inquiries or demands by government authorities, may have a material adverse effect on our business.
- Our business is subject to laws and regulations relating to sanctions and foreign corrupt practices, the violation of which could adversely affect our financial condition and results of operations.
- We are dependent on our executive officers, directors and other key personnel and the loss of any of these individuals could adversely affect our business.
- Some of our directors, large shareholders and their affiliates have interests and/or other involvement with entities that can create conflicts of interest through related party transactions.
- Cybersecurity events or other difficulties with our information technology systems could disrupt our business, result in the loss of critical and confidential information, increased costs, and adversely impact our reputation and results of operations.
- If outsourced providers such as third-party administrators, investment managers or other service providers were to breach their obligations to us, our business and results of operations could be adversely affected.
- The market price for our securities may experience volatility, which could cause a potential loss of value to our investors, and our ordinary shares are thinly traded, so the market value of our ordinary shares may decline if large numbers of shares are sold.
- A few significant shareholders may influence or control the direction of our business. If the ownership of our ordinary shares continues to be highly concentrated, it may limit the ability of other shareholders to influence significant corporate decisions.
- Some aspects of our corporate structure and certain regulatory limitations may discourage third-party takeovers and other transactions or prevent the removal of our Board and management.
- Bermuda Law differs from the laws in effect in the United States. Shareholders who own our shares may have more difficulty protecting their interests than shareholders of a U.S. corporation.
- Certain regulatory and other constraints may limit our ability to pay dividends on our securities, and dividends on our preferred shares are non-cumulative.
- Our ordinary and preferred shares are subordinate to our existing and future indebtedness and our ordinary shares rank junior to our outstanding preferred shares.
- There is no limitation on our issuance of securities that rank equally with or senior to the preferred shares.
- The voting rights of holders of our preferred shares and, in turn, the depositary shares representing our preferred shares are limited.
- We have no obligation to maintain any listing of the depositary shares representing our outstanding preferred shares.
- A classification of the depositary shares representing our preferred shares by the National Association of Insurance Commissioners may impact U.S. insurance companies that purchase our preferred shares.
- Our preferred shares are subject to our rights of redemption.
Management Discussion
- ROE decreased by 23.5 pp primarily due to the components in the following diagram:
- Adjusted ROE* decreased by 11.2 pp, as it excludes the impact of net realized and unrealized losses on fixed income securities.
- *Non-GAAP measure; refer to "Non-GAAP Financial Measures" section for reconciliation to the applicable GAAP financial measure.