1267238--2/27/2009--ASSURANT

related topics

{loss, insurance, financial}

{condition, economic, financial}

{financial, litigation, operation}

{provision, law, control}

{loan, real, estate}

{capital, credit, financial}

{operation, international, foreign}

{system, service, information}

{tax, income, asset}

{cost, regulation, environmental}

{product, market, service}

{stock, price, operating}

{customer, product, revenue}

{personnel, key, retain}

{regulation, government, change}

{debt, indebtedness, cash}

{acquisition, growth, future}

Risks Related to Our Company Our income and profitability may decline if we are unable to maintain our relationships with significant clients, distributors and other parties important to the success of our business. Sales of our products and services may be reduced if we are unable to attract and retain sales representatives or develop and maintain distribution sources. Our earnings could be materially affected by an impairment of goodwill. Current conditions in the capital and credit markets may significantly and adversely affect our access to capital and our ability to meet liquidity needs. General economic, financial market and political conditions may materially adversely affect our results of operations and financial conditions. Particularly, difficult conditions in financial markets and the global economy may negatively affect our results. Our investment portfolio is subject to several risks that may diminish the value of our invested assets and affect our profitability. Given the current global economic slowdown, our investment portfolio may continue to suffer reduced returns or losses that could materially reduce our profitability Our actual claims losses may exceed our reserves for claims, which may require us to establish additional reserves that may materially reduce our earnings, profitability and capital. We may be unable to accurately predict benefits, claims and other costs or to manage such costs through our loss mitigation methods, which could have a material adverse effect on our results of operations and financial condition. Catastrophe losses, including man-made catastrophe losses, could materially reduce our profitability and have a material adverse effect on our results of operations and financial condition. Unanticipated changes in tax provisions or exposure to additional income tax liabilities could materially and adversely affect our results. Fluctuations in the exchange rate of the U.S. dollar and other foreign currencies may materially and adversely impact our results of operations. We face risks associated with our international operations. Reinsurance may not be available or adequate to protect us against losses, and we are subject to the credit risk of reinsurers. We have sold businesses through reinsurance that could again become our direct financial and administrative responsibility if the purchasing companies were to become insolvent. Due to the structure of our commission program, we are exposed to the credit risk of some of our agents and our clients in Assurant Solutions and Assurant Specialty Property. A further decline in the manufactured housing market may adversely affect our results of operations and financial condition. A.M. Best, Moody s, and S P rate the financial strength of our insurance company subsidiaries, and a decline in these ratings could affect our standing in the insurance industry and cause our sales and earnings to decrease. The failure to effectively maintain and modernize our information systems could adversely affect our business. Failure to protect our clients confidential information and privacy could result in the loss of reputation and customers, reduction to our profitability and/or subject us to fines, litigation and penalties. Our ability to achieve our desired market positions may be significantly impaired if we do 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 promote such ventures, which could have a material adverse effect on our results of operations. The inability of our subsidiaries to pay dividends to us in sufficient amounts could harm our ability to meet our obligations and pay future stockholder dividends. The success of our business strategy depends on the continuing service of key executives and the members of our senior management team, and any failure to adequately provide for the succession of senior management and other key executives could have an adverse effect on our results of operations. Risks Related to Our Industry Our business is subject to risks related to litigation and regulatory actions. The insurance and related businesses in which we operate may be subject to periodic negative publicity, which may negatively impact our financial results. We face significant competitive pressures in our businesses, which may reduce premium rates and prevent us from pricing our products at rates that will allow us to be profitable. The insurance industry is cyclical, which may impact our results. We are subject to extensive governmental laws and regulations, which increase our costs and could restrict the conduct of our business. Changes in regulation may reduce our profitability and limit our growth. Costs of compliance with privacy and security laws could adversely affect our business and results of operations. Risks Related to Our Common Stock Given the current economic climate, our stock may be increasingly subject to stock price and trading volume volatility. The price of our common stock could fluctuate or decline significantly and you could lose all or part of your investment. Applicable laws and our certificate of incorporation and by-laws may discourage takeovers and business combinations that our stockholders might consider in their best interests. Applicable insurance laws may make it difficult to effect a change of control of our Company.

Full 10-K form ▸

1267238--2/27/2009--ASSURANT_INC