1272957--3/14/2006--BRISTOL_WEST_HOLDINGS

related topics

{debt, indebtedness, cash}

{loss, insurance, financial}

{condition, economic, financial}

{capital, credit, financial}

{regulation, government, change}

{financial, litigation, operation}

{personnel, key, retain}

{competitive, industry, competition}

{system, service, information}

{operation, natural, condition}

{loan, real, estate}

{control, financial, internal}

{customer, product, revenue}

{cost, regulation, environmental}

We face intense competition from other automobile insurance providers. Our concentration on non-standard automobile insurance could make us more susceptible to unfavorable market conditions. Our success depends on our ability to price the risks we underwrite accurately. Our losses and loss adjustment expenses may exceed our loss and loss adjustment expense reserves, which could adversely impact our results of operation, financial condition and cash flows. We are subject to comprehensive regulation, and our ability to earn profits may be adversely affected by these regulations. Our insurance subsidiaries are subject to minimum capital and surplus requirements. Our failure to meet these requirements could subject us to regulatory action. Regulation may become more extensive in the future, which may adversely affect our business. Our failure to pay claims accurately could adversely affect our business, financial condition, results of operations and As a holding company, we are dependent on the results of operations of our subsidiaries and their ability to transfer funds to us to meet our obligations. The policy service fee revenues could be adversely affected by insurance regulation. New pricing, claim and coverage issues and class action litigation are continually emerging in the automobile insurance industry, and these new issues could adversely impact our results of operations and financial condition. We may be unable to attract and retain independent agents and brokers. Our failure to maintain a commercially acceptable financial strength rating of our insurance subsidiaries could significantly and negatively affect our ability to implement our business strategy successfully. We rely on information technology and telecommunication systems, and the failure of these systems could materially and adversely affect our business. We are parties to multiple lawsuits, which, if decided adversely against us, could have a negative impact on our financial results. Our ability to operate our company effectively could be impaired if we lose key personnel. Our debt service obligations could impede our operations, flexibility and financial performance. Our debt service obligations could impede our operations, flexibility and financial performance. We are subject to restrictive debt covenants, which may restrict our operational flexibility. Adverse securities market conditions can have significant and negative effects on our investment portfolio. Our operations could be adversely affected if conditions in the states where our business is concentrated were to deteriorate. Severe weather conditions and other catastrophes may result in an increase in the number and amount of claims filed against us. The loss of, or significant reduction in, business from our largest producers could adversely affect our financial condition and results of operations. We have terminated and commuted our significant reinsurance agreements; therefore, we will retain more risk, which could result in losses. Our financial condition may be adversely affected if one or more parties with which we enter into significant contracts becomes insolvent or experiences other financial hardship.

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1272957--3/14/2006--BRISTOL_WEST_HOLDINGS_INC