1267238--3/10/2006--ASSURANT

related topics

{loss, insurance, financial}

{condition, economic, financial}

{financial, litigation, operation}

{stock, price, share}

{customer, product, revenue}

{provision, law, control}

{cost, regulation, environmental}

{regulation, change, law}

{system, service, information}

{loan, real, estate}

{product, market, service}

{regulation, government, change}

{capital, credit, financial}

{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. General economic, financial market and political conditions may adversely affect our results of operations and financial condition. 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 limitation methods, which could have a material adverse effect on our results of operations and financial condition. Our investment portfolio is subject to several risks that may diminish the value of our invested assets and affect our profitability. 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. 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 in Assurant PreNeed and our clients in Assurant Solutions. A further decline in the manufactured housing market may adversely affect our results of operations and financial condition. The financial strength of our insurance company subsidiaries is rated by A.M. Best, Moody s, and S P, 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. Continued compliance with the Sarbanes-Oxley Act may entail significant expenditure. 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. 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. 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. Risks Related to Our Industry Our business is subject to risks related to litigation and regulatory actions. 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. The insurance and related businesses in which we operate may be subject to periodic negative publicity, which may negatively impact our financial 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 laws could adversely affect our business and results of operations. Risks Related to Our Relationship with Fortis Fortis continues to be a significant stockholder of the Company, which gives them the right to register their shares and the ability to influence the market price of our stock. Because Fortis Bank operates U.S. branch offices, we are subject to regulation and oversight by the Federal Reserve Board under the Bank Holding Company Act ( BHCA ). Risks Related to Our Common Stock 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. Our stock and the stocks of other companies in the insurance industry are subject to stock price and trading volume volatility.

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1267238--3/10/2006--ASSURANT_INC