Risk Factors Update Summary

• Contracts with cancellation rights represented 26% of gross premiums written in 2023. This could impact financial stability.
• The recent Monetary Authority (Administrative Fines) (Amendment) Regulations, 2020 extended fines scope up to $1,220,000 per breach for very serious breaches.
• The Company now derives revenues from "two principal sources" instead of "currently." This change might impact revenue stability.
• Additional collateral in case of A.M. Best downgrade increased to approximately $133.2 million in 2023.
• Losses and loss adjustment expenses greatly exceeding reserves could significantly impact financials. This change might result in increased reserve requirements.
• The Investment Portfolio basis increased to 60% effective January 1, 2023, from 50% previously.
• Loss and LAE reserves now include "case reserves" and "proposed adjustments." This change could affect reserve adequacy.
• The Investment returns for SILP in 2023 were 9.4%, compared to 25.3% in 2022.
• Global inflation led to an increase in projected future claim costs, affecting loss reserve development.
• Loss of significant brokers could materially affect business operations. This change could lead to decreased revenue and market access.
• Investment strategy requires substantial assets in SILP with DME Advisors managing. This change might result in increased reliance on SILP performance.
• The number of total employees worldwide as of March 1, 2024, was 64, with 36 in Grand Cayman, 16 in Dublin, and 12 in London.
• The Company may incur "additional losses" if the Ukrainian conflict is prolonged, potentially impacting financial performance.
• Innovations investments have significant concentration in top five holdings. This change could lead to increased investment risk.
• Change from dual-class to single-class structure may impact shareholder rights. This change might result in altered voting and conversion rights.
• Acquisition of Lloyd's corporate member GCM enhances underwriting capacity. This change could lead to increased control over FAL business.
• Gross premiums written by largest brokers decreased from $408,934k in 2021 to $292,416k in 2023. This change might result in reduced revenue from major brokers.