101199--3/1/2010--UNITED_FIRE_&_CASUALTY

related topics

{loss, insurance, financial}

{loan, real, estate}

{stock, price, share}

{condition, economic, financial}

{system, service, information}

{provision, law, control}

{financial, litigation, operation}

{capital, credit, financial}

{product, market, service}

{regulation, government, change}

{stock, price, operating}

Our reserves for property and casualty insurance losses and costs related to settlement of property and casualty losses and our life reserves for future policy benefits may be inadequate, which would have an unfavorable impact on our financial results. The cyclical nature of the property and casualty insurance business may affect our financial performance. We are subject to interest rate fluctuations and declines in the value of investments held in our investment portfolio due to various market factors that could negatively affect our profitability. Financial disruption or a prolonged economic downturn may materially and adversely affect our business operations. The effects of emerging claim and coverage issues and class action litigation on our business are uncertain. We are exposed to credit risk in certain areas of our operations. We are subject to comprehensive laws and regulations that pose particular risks to our ability to earn profits. Unauthorized data access and other security breaches could have an adverse impact on our business and reputation. A reduction in our financial strength ratings could adversely affect our business and financial condition. Market conditions may affect our access to and the cost of reinsurance and our reinsurers may not pay losses in a timely manner, or at all. Our geographic concentration in both our property and casualty insurance and life insurance segments ties our performance to the business, economic and regulatory conditions of certain states. We face significant competitive pressures in our business that could cause demand for our products to fall and reduce our revenue and profitability. Our business depends on the uninterrupted operations of our facilities, systems and business functions. Risks Relating to our Common Stock As an insurance company, our ability to pay dividends is restricted by state law. The price of our common stock may be volatile. Certain provisions of our organizational documents, as well as applicable insurance laws, could impede an attempt to replace or remove our management, prevent the sale of our company or prevent or frustrate any attempt by stockholders to change the direction of our company, each of which could diminish the value of our common stock.

Full 10-K form ▸

101199--3/1/2010--UNITED_FIRE_&_CASUALTY_CO