Risk Factors Update Summary
- Wage inflation has increased payrolls of policyholders, potentially forcing premium rate reductions or commission rate increases.
- The loss environment in California could have a significant adverse impact on business.
- Reinsurance recoverables decreased from $451 million to $433 million, affecting financial condition.
- The reinsurance program effective through June 30, 2024, may fluctuate significantly based on market conditions.
- Estimated remaining liabilities subject to the LPT Agreement decreased from $308 million to $291 million.
- Inflationary considerations were included in reserve adequacy determinations for losses and LAE.
- Market interest rate increases in 2022 negatively impacted the fair value of fixed maturity investments.
Full Text Changes in Most Recent 10-K
Intended use: review the highlighted statements. These are additions to the risk factors disclosure in the most recent 10-K filing compared to the previous 10-K filing. Deleted and moved text is less important and is shown for context.
To view the full company filings, click on the following link to be taken to the SEC EDGAR database landing page for the company: https://www.sec.gov/edgar/browse/?CIK=1379041&owner=exclude
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