310826--3/30/2007--PROTECTIVE_LIFE_INSURANCE

related topics

{loss, insurance, financial}

{capital, credit, financial}

{acquisition, growth, future}

{regulation, change, law}

{condition, economic, financial}

{financial, litigation, operation}

{competitive, industry, competition}

{system, service, information}

{operation, natural, condition}

{regulation, government, change}

{loan, real, estate}

The Company is exposed to the risks of natural disasters, pandemics, malicious and terrorist acts that could adversely affect the Company s operations. The Company operates in a mature, highly competitive industry, which could limit its ability to gain or maintain its position in the industry and negatively affect profitability. A ratings downgrade could adversely affect the Company s ability to compete. The Company s policy claims fluctuate from period to period resulting in earnings volatility. The Company s results may be negatively affected should actual experience differ from management s assumptions and estimates. The use of reinsurance introduces variability in the Company s statements of income. The Company could be forced to sell investments at a loss to cover policyholder withdrawals. Interest-rate fluctuations could negatively affect the Company s spread income or otherwise impact its business. Equity market volatility could negatively impact the Company s business. Insurance companies are highly regulated and subject to numerous legal restrictions and regulations. Changes to tax law or interpretations of existing tax law could adversely affect the Company and its ability to compete with non-insurance products or reduce the demand for certain insurance products. Financial services companies are frequently the targets of litigation, including class action litigation, which could result in substantial judgments. Publicly held companies in general and the financial services industry in particular are sometimes the target of law enforcement investigations and the focus of increased regulatory scrutiny. The Company s ability to maintain competitive unit costs is dependent upon the level of new sales and persistency of existing business. The Company s investments are subject to market and credit risks. The Company may not realize its anticipated financial results from its acquisitions strategy. The Company may not be able to achieve the expected results from its recent acquisition. The Company is dependent on the performance of others. The Company s reinsurers could fail to meet assumed obligations, increase rates or be subject to adverse developments that could affect the Company. Computer viruses or network security breaches could affect the data processing systems of the Company or its business partners and could damage our business and adversely affect our financial condition and results of operations. The Company s ability to grow depends in large part upon the continued availability of capital. New accounting rules or changes to existing accounting rules could negatively impact the Company. The Company s risk management policies and procedures may leave it exposed to unidentified or unanticipated risk, which could negatively affect our business or result in losses.

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310826--3/30/2007--PROTECTIVE_LIFE_INSURANCE_CO