1171218--3/21/2006--NORTH_POINTE_HOLDINGS

related topics

{loss, insurance, financial}

{loan, real, estate}

{capital, credit, financial}

{personnel, key, retain}

{debt, indebtedness, cash}

{acquisition, growth, future}

{regulation, change, law}

{condition, economic, financial}

{regulation, government, change}

{stock, price, operating}

{financial, litigation, operation}

{system, service, information}

{product, liability, claim}

{control, financial, internal}

{competitive, industry, competition}

{operation, natural, condition}

We depend upon our network of independent agents for revenues and market opportunities, and our business may not continue to grow and may be materially and adversely affected if we cannot retain existing, and attract new, independent agents. Our failure to pay claims accurately could adversely affect our business, results of operations and capital. Our financial results may be adversely affected by conditions in the states where our business is concentrated. We have a limited history writing homeowners insurance policies to homeowners in Florida, and our Florida homeowners business may not perform as we expect, which could adversely affect our business and financial condition. Implementation of our growth strategies is subject to numerous risks and difficulties. 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 commitment. Assessments and other surcharges for guaranty funds and mandatory reinsurance arrangements may reduce our profitability. Severe weather conditions and other catastrophes may result in an increase in the number and amount of claims that we incur. Our business is cyclical, which affects our financial performance and may affect the market price of our common stock. Our business is seasonal, which affects our financial performance and may affect the market price of our common stock. Intense competition could adversely affect our results of operations. If we lose key personnel or are unable to recruit additional qualified personnel, our ability to implement our growth strategies could be hindered. The success of certain of our product lines, including our bowling center insurance product line, depends upon our receipt of trade association endorsements, and we may not be able to retain existing endorsements or secure new endorsements. As a holding company, we depend on payments from our subsidiaries to satisfy our financial obligations. Our insurance company subsidiaries are subject to regulatory and other restrictions limiting their ability to pay dividends to us. We are subject to comprehensive regulation that poses particular risks to our ability to earn profits. We are subject to other state laws and regulations that impose additional administrative burdens and risks that may also affect our ability to earn profits. Our insurance company subsidiaries, our premium finance subsidiary and our captive reinsurance subsidiary are subject to minimum capital and surplus requirements, and our failure to meet these requirements could subject us to regulatory action. A reduction in our insurance company subsidiaries A.M. Best financial strength ratings could adversely affect our business and financial condition. We could incur significant losses or a shortage of liquidity if our reinsurers are unable to pay or do not pay our claims timely. The outcome of current industry investigations and regulatory proposals could adversely affect our financial condition and results of operations. We may be subject to risks associated with our continued use of contingent commission arrangements with independent agents in Florida. Changes in regulation could adversely affect our business. Adverse securities market conditions could have a significant and negative impact on our investment portfolio. We rely on our information technology and telecommunications systems, and the failure or disruption of these systems could disrupt our operations and adversely affect our results of operations. Our failure to implement and maintain adequate internal controls in our business could have a material adverse effect on our business, financial condition, results of operations and stock price. Failure to manage effectively the costs and administrative burdens of being a newly public company would adversely affect our business and results of operations.

Full 10-K form ▸

1171218--3/21/2006--NORTH_POINTE_HOLDINGS_CORP