Declining Free Cash FlowA material fall in free cash flow driven by higher capital expenditures compresses internal funding for dividends, buybacks, or debt reduction. If elevated capex persists, it could strain liquidity and force reliance on external financing, affecting medium-term flexibility.
Thin Net Profit MarginA low net margin around 2% leaves limited buffer against underwriting losses, investment volatility, or rising costs. Over multiple quarters this thin profitability increases sensitivity to adverse shocks and constrains retained earnings for capital build-up and strategic investment.
Rising LeverageAn uptick in leverage raises interest and refinancing exposure and can limit strategic options. While current levels are manageable, further increases would weaken financial flexibility and could pressure capital ratios under stress or regulatory change over the medium term.