11544--2/26/2010--BERKLEY_W_R

related topics

{loss, insurance, financial}

{loan, real, estate}

{condition, economic, financial}

{operation, natural, condition}

{capital, credit, financial}

{acquisition, growth, future}

{operation, international, foreign}

{provision, law, control}

{personnel, key, retain}

{product, market, service}

{debt, indebtedness, cash}

{cost, regulation, environmental}

Our actual claims losses may exceed our reserves for claims, which may require us to establish additional reserves. As a property casualty insurer, we face losses from natural and man-made catastrophes. We face significant competitive pressures in our businesses, which have reduced premium rates and could harm our ability to maintain or increase our profitability and premium volume. Current conditions in the financial markets and the ongoing economic downturn have had and may continue to have a negative impact on our results of operations and financial condition, particularly if such conditions continue. We, as a primary insurer, may have significant exposure for terrorist acts. Our earnings could be more volatile because of our significant level of retentions. We are subject to extensive governmental regulation, which increases our costs and could restrict the conduct of our business. Risks Relating to Our Business We cannot guarantee that our reinsurers will pay in a timely fashion, if at all, and, as a result, we could experience losses. We are rated by A.M. Best, Standard Poor s, and Moody s, and a decline in these ratings could affect our standing in the insurance industry and cause our sales and earnings to decrease. If market conditions cause reinsurance to be more costly or unavailable, we may be required to bear increased risks or reduce the level of our underwriting commitments. Depending on conditions in the financial markets and the ongoing economic downturn, we may be unable to raise debt or equity capital if needed. Our international operations expose us to investment, political and economic risks, including foreign currency and credit risk. We may not find suitable acquisition candidates or new insurance ventures and even if we do, we may not successfully integrate any such acquired companies or successfully invest in such ventures. We may be unable to attract and retain qualified employees. Risks Relating to Our Investments A significant amount of our assets is invested in fixed maturity securities and is subject to market fluctuations. We invest some of our assets in equity securities, merger arbitrage securities, investment funds, private equity and real estate related assets, which may decline in value. Risks Relating to Purchasing Our Securities We are an insurance holding company and, therefore, may not be able to receive dividends in needed amounts. We are subject to certain provisions that may have the effect of hindering, delaying or preventing third party takeovers, which may prevent our stockholders from receiving premium prices for their shares in an unsolicited takeover and make it more difficult for third parties to replace our current management.

Full 10-K form ▸

11544--2/26/2010--BERKLEY_W_R_CORP