supported by our strong reputation and financial resources, and by the capabilities and track record of our Capital Partners and Strategic Investments teams. COMPETITION The markets in which we operate are highly competitive. Our competitors include independent reinsurance and insurance companies, subsidiaries, divisions and/or affiliates of globally recognized insurance companies, reinsurance divisions of certain insurance companies, domestic and international underwriting operations, such as managing general agents, as well as a range of other entities offering risk transfer protection on a collateralized or other non-traditional basis. As our business and the (re)insurance industry continue to evolve, we expect our competitors to evolve as well, and we may face competition from other non-traditional participants, such as technology or Insurtech companies, among others. We believe that our principal competitors include traditional insurance and reinsurance companies such as Allied World Assurance Company, AG, Arch Capital Group Ltd., Argo Group, Ark Insurance Holdings Ltd., Aspen Insurance Holdings Limited, AXA XL, Axis Capital Holdings Limited, Chubb Limited, Conduit Holdings Limited, Convex Re Limited, Core Specialty Insurance Holdings, Inc., Everest Re Group, Ltd., Greenlight Reinsurance Ltd., Hamilton Re Ltd., James River Insurance Company, LGT Capital Partners Ltd., Odyssey Re Holdings Corp., PartnerRe Ltd., SiriusPoint Reinsurance Ltd., Sompo International, Transatlantic Reinsurance Company (a part of Alleghany Corporation), Validus Reinsurance Ltd. (a part of American International Group Inc.) and Watford Re Ltd. (a part of Arch Capital Group Ltd.). Our principal competitors also include third-party capital managers such as Aeolus Re Ltd., AlphaCat Managers (a part of American International Group Inc.), Credit Suisse Insurance Linked Strategies, Fermat Capital Management, LLC, Elementum Advisors, LLC, Hudson Structured Capital Management, Leadenhall Capital Partners, LGT Capital Partners Ltd., Nephila Capital Ltd. (a part of Markel Corporation), Pillar Capital Management Limited and Securis Investment Partners LLC. We also compete with certain Lloyd’s syndicates active in the London market, such as those managed by Beazley PLC, Hiscox Ltd., and Lancashire Holdings, as well as with several other industry participants, such as American International Group, Berkshire Hathaway Inc., the D. E. Shaw Group, Hannover Re AG, Ironshore Inc., Munich Reinsurance Company and Swiss Re Ltd. Hedge funds, pension funds and endowments, investment banks, insurance exchanges and other capital market participants may also be active in the reinsurance market and the market for related risk, either through the formation of reinsurance companies (such as Aeolus Re Ltd., Fidelis Insurance Holdings Limited, Greenlight Reinsurance Ltd., Hamilton Re Ltd., and SiriusPoint Reinsurance Ltd.) or through the use of financial products, such as catastrophe bonds and other insurance-linked securities. The tax policies of the countries where our customers operate, as well as government sponsored or backed insurance companies and catastrophe funds may also affect demand for reinsurance, sometimes significantly. Moreover, government-backed entities may represent competition for the coverages we provide, either directly or by competing for the business of our customers, thereby reducing the potential amount of third-party private protection our clients may need or desire. RISK MANAGEMENT Underwriting Risk Management Our primary underwriting goal is to construct a portfolio of reinsurance and insurance contracts and other financial risks that maximizes our return on shareholders’ equity, subject to prudent risk constraints, and to generate long-term growth in tangible book value per common share plus the change in accumulated dividends. We assess each new (re)insurance contract on the basis of the expected incremental return relative to the incremental contribution to portfolio risk. We have developed a proprietary pricing and exposure management system, REMS©, which has analytic and modeling capabilities that help us to assess the risk and return of each incremental (re)insurance contract in relation to our overall portfolio of (re)insurance contracts. We believe that REMS© is a robust underwriting and risk management system that has been successfully integrated into our business processes and culture. In conjunction with pricing models that we run outside of REMS©, the REMS© framework encompasses and facilitates risk capture, analysis, correlation, portfolio aggregation and capital 11