The effect of catastrophes
Property casualty insurers are subject to claims arising out of catastrophes that may have a significant effect on their results of operations, liquidity and financial condition. Catastrophe losses have had a significant impact on the company’s results. For example, catastrophe losses net of reinsurance recoveries were $202.0 million in 2021 (including COVID-19 related losses), $340.0 million in 2020 (including COVID-19 related losses), and $90.0 million in 2019. Similarly, man-made catastrophes can also have a material impact on our financial results.
COVID|Competition|StructuralIn response to volatile demand in the wake of the first COVID-19 surge, the company undertook a comprehensive cost reduction program, aimed at shoring up labor and supply costs.
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