✓ Superior risk-adjusted underwriting results Pages 3, 6,
56
✓ Above average risk-adjusted investment returns Pages 3,
7, 9, 56
✓ Prudent capital management Pages 3, 56
✓ Disciplined cycle management is key to long-term success Pages
3, 5
✓ Grow when pricing is strong and reduce volume when prices are
inadequate Pages 3, 5 ✓ Effectively manage volatility, including from catastrophic events Pages 6, 7, 56
✓ Pursue strategies to build value for the future Pages
7-8
✓ Our long-term return on equity (ROE) and total value
creation have consistently outperformed the industry and our peers Pages 7, 9, 52, 56
✓ Our total value creation over the last 20 years has been achieved
with significantly less volatility than our peers Page 7
✓ Our three- and five-year average Total Shareholder Return rank in
the 89th percentile of our peers Page 52 ✓ Average annual gain in book value per share (with dividends included) since 1974 of 16.6% has outpaced the S&P 500® Index by 3.6
points Page 9 |
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✓ 80% independent directors Pages 10, 22
✓ Board members bring diverse backgrounds, skills, experience and
perspectives Pages 12-15, 26-27
✓ Diversified tenure of directors balances Board refreshment with
benefit of overseeing the full insurance cycle Pages 30-31
✓ 38% of independent Board members refreshed in the last 5 years
Page 33
✓ Separate Executive Chairman and Chief Executive Officer
Pages 21, 29 ✓ Independent lead director who presides at executive sessions of the Board rotates among the Chair of the Audit Committee, the Chair of the Compensation Committee and any non-management members of the Executive Committee Pages 29-30
✓ Significant required stock ownership by NEOs and directors. Shares
held until separation from service. Prohibition on pledging shares used to satisfy ownership requirements. Page 61, 74
✓ Directors and executive officers as a group own 22.5% of the
Companys stock as of April 18, 2022 Page 81
✓ Board oversight of Enterprise Risk Management with ERM management
committee that regularly reports to the Board Page 32
✓ Board oversight of Environmental, Social and Governance with ESG
management committee that regularly reports to the Board Page 34
✓ Board oversight of human capital management and corporate culture
Pages 36-37 |
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✓ CEO and other NEOs compensation are 92% and 84%, respectively, performance-based and at-risk Page 40
✓ 58% of CEO and 52% of NEO compensation are long-term and subject
to clawback Page 40 ✓ NEOs do not receive shares from vested Restricted Stock Unit awards until separation from service Pages 40, 43, 48
✓ Annual cash incentive awards are performance-based and non-formulaic to discourage short-term oriented behavior that can hurt long-term performance in our industry Pages 43, 45-47
✓ Determination of the NEOs annual cash incentive awards are
based on financial performance for the current year, financial performance compared to peers, and contributions to long-term value creation Pages 45, 47, 55
✓ 100% of long-term compensation, and 63% of CEOs incentive
compensation, are formulaic Page 40 ✓ Executive Chairmans compensation reflects his active role in strategy and investments and his instrumental role in the strategy and investment opportunities that have generated
significant realized gains Page 54 ✓ CEO compensation is well-aligned with performance, as the Companys performance ranks in the top quartile of our peers Page 52
✓ Compensation peer group comprised of relevant industry peers
Page 51 |