1214816--2/26/2008--AXIS_CAPITAL_HOLDINGS

related topics

{regulation, change, law}

{loss, insurance, financial}

{provision, law, control}

{financial, litigation, operation}

{operation, international, foreign}

{operation, natural, condition}

{acquisition, growth, future}

{product, liability, claim}

{capital, credit, financial}

{competitive, industry, competition}

{system, service, information}

{interest, director, officer}

{debt, indebtedness, cash}

{personnel, key, retain}

{loan, real, estate}

Our results of operations and financial condition could be materially adversely affected by the occurrence of natural and man-made disasters. We could face unanticipated losses from war, terrorism and political unrest, and these or other unanticipated losses could have a material adverse effect on our financial condition and results of operations. If actual claims exceed our loss reserves, our financial results could be adversely affected. The failure of any of the loss limitation methods we employ could have a material adverse effect on our results of operations or financial condition. The effects of emerging claim and coverage issues on our business are uncertain. The risk associated with reinsurance underwriting could adversely affect us. We could be materially adversely affected to the extent that managing general agents, general agents and other producers in our program business exceed their underwriting authorities or otherwise breach obligations owed to us. If we choose to purchase reinsurance, we may be unable to do so, and if we successfully purchase reinsurance, we may be unable to collect. If we experience difficulties with technology and/or data security our ability to conduct our business might be negatively impacted. A decline in our investment performance could reduce our profitability. Our operating results may be adversely affected by currency fluctuations. We may require additional capital in the future, which may not be available or may only be available on unfavorable terms. Our inability to obtain the necessary credit could affect our ability to offer reinsurance in certain markets. Since we depend on a few brokers for a large portion of our revenues, loss of business provided by any one of them could adversely affect us. Our reliance on brokers subjects us to their credit risk. We could be adversely affected by the loss of one or more key executives or by an inability to attract and retain qualified personnel. Competition in the insurance industry could reduce our risk margins The insurance and reinsurance business is historically cyclical, and we expect to experience periods with excess underwriting capacity and unfavorable premium rates. The regulatory system under which we operate, and potential changes thereto, could have a material adverse effect on our business. Potential government intervention in our industry as a result of recent events and instability in the marketplace for insurance products could hinder our flexibility and negatively affect the business opportunities that may be available to us in the market. Our ability to pay dividends and to make payments on indebtedness may be constrained by our holding company structure. AXIS Capital is a Bermuda company and it may be difficult for you to enforce judgments against it or its directors and executive officers. There are provisions in our charter documents that may reduce or increase the voting rights of our shares. There are provisions in our bye-laws that may restrict the ability to transfer common shares and which may require shareholders to sell their common shares. Applicable insurance laws may make it difficult to effect a change of control of our company. Anti-takeover provisions in our bye-laws could impede an attempt to replace our directors or to effect a change in control, which could diminish the value of our common shares. We may become subject to taxes in Bermuda after March 28, 2016, which may have a material adverse effect on our results of operations. Our non-U.S. companies may be subject to U.S. tax that may have a material adverse effect on our results of operations. Our non-U.K. companies may be subject to U.K. tax that may have a material adverse effect on our results of operations. Our non-Irish companies may be subject to Irish tax that may have a material adverse effect on our results of operations. If corporate tax rates in Ireland increase, our results of operations could be materially adversely affected. If investments held by AXIS Specialty Europe or AXIS Re Ltd. are determined not to be integral to the insurance and reinsurance businesses carried on by those companies, additional Irish tax could be imposed and our business and financial results could be materially adversely affected. The impact of Bermuda s letter of commitment to the Organization for Economic Cooperation and Development to eliminate harmful tax practices is uncertain and could adversely affect our tax status in Bermuda. Changes in U.S. federal income tax law could materially adversely affect us.

Full 10-K form ▸

1214816--2/26/2008--AXIS_CAPITAL_HOLDINGS_LTD