1267201--3/17/2008--SEABRIGHT_INSURANCE_HOLDINGS

related topics

{loss, insurance, financial}

{loan, real, estate}

{product, liability, claim}

{acquisition, growth, future}

{stock, price, share}

{condition, economic, financial}

{provision, law, control}

{capital, credit, financial}

{cost, regulation, environmental}

{personnel, key, retain}

{regulation, change, law}

{debt, indebtedness, cash}

{customer, product, revenue}

{stock, price, operating}

Our geographic concentration ties our performance to the business, economic and regulatory conditions in California, Illinois and Louisiana. Any single catastrophe or other condition affecting losses in these states could adversely affect our results of operations. If we are unable to obtain or collect on our reinsurance protection, our business, financial condition and results of operations could be materially adversely affected. The insurance business is subject to extensive regulation and legislative changes, which impact the manner in which we operate our business. A downgrade in the A.M. Best rating of our insurance subsidiary could reduce the amount of business we are able to write. The effects of emerging claim and coverage issues on our business are uncertain. Intense competition could adversely affect our ability to sell policies at rates we deem adequate. If we are unable to realize our investment objectives, our financial condition may be adversely affected. We could be adversely affected by the loss of one or more principal employees or by an inability to attract and retain staff. We may require additional capital in the future, which may not be available or only available on unfavorable terms. Our status as an insurance holding company with no direct operations could adversely affect our ability to pay dividends in the future. We rely on independent insurance brokers to distribute our products. Assessments and other surcharges for guaranty funds and second injury funds and other mandatory pooling arrangements may reduce our profitability. In the event LMC is placed into receivership, we could lose our rights to fee income and protective arrangements that were established in connection with the Acquisition, our reputation and credibility could be adversely affected and we could be subject to claims under applicable voidable preference and fraudulent transfer laws. Risks Related to Our Industry We may face substantial exposure to losses from terrorism for which we are required by law to provide coverage. The threat of terrorism and military and other actions may result in decreases in our net income, revenue and assets under management and may adversely affect our investment portfolio. Our results of operations and revenues may fluctuate as a result of many factors, including cyclical changes in the insurance industry, which may cause the price of our common stock to be volatile. Risks Related to Our Common Stock The price of our common stock may decrease. Applicable insurance laws may make it difficult to effect a change of control of our company.

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1267201--3/17/2008--SEABRIGHT_INSURANCE_HOLDINGS_INC