The company continues to form new businesses focused on important parts of the economy in the U.S. and growing international markets. This indicates an ongoing strategy of organic growth and market diversification.

The company completed the sale of the property and casualty insurance services division of Breckenridge IS, Inc. in June 2023, resulting in a pre-tax net realized gain on investment of $89 million. This suggests a strategic focus on core insurance operations.

The company's international operations expose it to increased investment, political, legal/regulatory, and economic risks, including foreign currency and credit risk. This indicates a continued commitment to global expansion, but also increased exposure to international risks.

The company repurchased shares and declared dividends, reflecting a commitment to returning value to shareholders. This indicates confidence in the company's financial position and future prospects.

The company's decentralized structure allows it to respond quickly and efficiently to local or specific market conditions and to pursue specialty business niches. This indicates an agile and responsive management approach.

The company emphasizes risk management and internal controls, as evidenced by its compliance with the ORSA Model Act and cybersecurity regulations. This demonstrates a commitment to responsible corporate governance and risk mitigation.

As a property casualty insurer, the company faces losses from natural and man-made catastrophes. This is a consistent and ongoing risk factor for the industry.

The COVID-19 pandemic has materially and adversely affected the company's results of operations, and future pandemics may further affect the company's financial position and liquidity. This is an ongoing risk factor.

The company is subject to extensive governmental regulation, which increases costs and could restrict the conduct of the business. This is a consistent and ongoing risk factor.

The property casualty insurance and reinsurance businesses are highly competitive, with many insurance companies of various sizes transacting business in the United States and internationally. This intense competition could affect the company's ability to price its products at attractive rates and retain existing business or write new products at adequate rates or on terms and conditions acceptable to it.

Ratings have become an increasingly important factor in establishing the competitive position of insurance companies. A decline in ratings could affect the company's standing in the insurance industry and cause sales and earnings to decrease.

In recent years, various types of investors have increasingly sought to participate in the property and casualty insurance and reinsurance industries. Well-capitalized new entrants to the property and casualty insurance and reinsurance industries, or existing competitors that receive substantial infusions of capital, provide increasing competition, which may adversely impact the company's business and profitability.

The expense ratio (underwriting expenses expressed as a percentage of net premiums earned) increased by 0.4 points to 28.4% in 2023 from 28.0% in 2022 mainly due to lower ceding commissions, increased compensation costs and new start-up operating unit expenses. The expense ratio remained relatively stable.

The company seeks specialized areas or geographic regions where its businesses can gain a competitive advantage by responding quickly to changing market conditions. This indicates a focus on operational agility and market responsiveness.

The company's business is highly dependent upon employees' ability to perform necessary business functions in an efficient and uninterrupted fashion. A shut-down of, or inability to access, one or more of the company's facilities, a power outage or a failure of one or more of its information technology, telecommunications or other computer systems could significantly impair employees' ability to perform such functions on a timely basis.

The NAIC and insurance regulators have been focusing on the use of “big data” techniques, such as artificial intelligence, machine learning and automated decision-making. This indicates a focus on innovation and technology.

The Company has a documented information security program (the Program) to identify, assess, monitor and manage potential cybersecurity threats and incidents. The Program is designed to protect the confidentiality, integrity and availability of our information systems and assets that store, process, or transmit information.

The company expects cybersecurity breaches to continue to occur in the future and it is constantly managing efforts to infiltrate and compromise its systems and data. This indicates that cybersecurity is a continuing concern.

The company buys and sells securities and other investment assets on a regular basis in order to maximize its total return on investments. Decisions to sell securities and other investment assets are based on management's view of the underlying fundamentals of specific investments as well as management's expectations regarding interest rates, credit spreads, currency values and general economic conditions.

The company repurchased shares and declared dividends, reflecting a commitment to returning value to shareholders. This indicates confidence in the company's financial position and future prospects.

The company's investment portfolio consists substantially of fixed maturity securities. This indicates a conservative investment strategy.

The NAIC and state insurance regulators continue to evaluate issues related to the management of climate risk. This indicates a focus on ESG.

The NAIC and state insurance regulators also continue to evaluate issues related to diversity within the insurance industry, such as the diversity of an insurer's board of directors and management. This indicates a focus on ESG.

The Company fosters a performance culture. It is focused on creating a respectful, rewarding, diverse, and inclusive work environment that allows its employees to build meaningful and productive careers. This indicates a focus on ESG.

The results of companies in the property casualty insurance industry historically have been subject to significant fluctuations and uncertainties in demand and pricing, causing cyclical changes in the insurance and reinsurance industry.

Legislative and regulatory initiatives in response to COVID-19 or other similar future pandemics may adversely affect the company, particularly in its workers' compensation and property coverages businesses.

The company, as a primary insurer, may have significant exposure for terrorist acts.