54473--2/27/2009--KANSAS_CITY_LIFE_INSURANCE

related topics

{loss, insurance, financial}

{capital, credit, financial}

{competitive, industry, competition}

{regulation, change, law}

{condition, economic, financial}

{tax, income, asset}

{acquisition, growth, future}

{financial, litigation, operation}

{personnel, key, retain}

{system, service, information}

{operation, natural, condition}

{regulation, government, change}

{product, market, service}

The Company operates in a mature, highly competitive industry, which could limit its ability to grow sales or maintain its position in the industry and negatively affect profitability. Changes in the business environment and competition could negatively affect the Company s ability to maintain or increase its profitability. The Company may be unable to attract agencies and sales representatives The Company s ability to maintain competitive unit costs is dependent upon the level of new sales The Company s ability to grow depends in large part upon the continued availability of capital Adverse capital and credit market conditions may significantly affect the Company s ability to meet liquidity needs, as well access to capital and cost of capital. The Company may be unable to complete additional acquisitions The Company may not realize its anticipated financial results from its acquisitions The Company s policy claims fluctuate from period to period, resulting in earnings volatility Significant adverse mortality experience may result in the loss of, or higher prices for, reinsurance The Company s results may be negatively affected should actual experience differ from management s assumptions and estimates. The Company s reserves for future policy benefits may prove to be inadequate The pattern of amortizing Deferred Acquisition Costs (DAC) and Value of Business Acquired (VOBA) may change, impacting both the level of the asset and the timing of the Company s net income (loss). Assumptions and estimates involve judgment and are subject to changes and revision over time The Company s reinsurers could fail to meet assumed obligations or be subject to adverse developments that could affect the Company. The Company s ability to compete is dependent on the availability of reinsurance or other substitute capital market solutions The use of reinsurance introduces variability in the Company s financial statements The Company s investments are subject to market and credit risks Interest rate fluctuations could negatively affect the Company s spread income or otherwise impact its business The Company s valuation of fixed maturity and equity securities may include methodologies, estimations and assumptions which are subject to differing interpretations and could result in changes to investment valuations that may materially adversely affect the results of operations or financial condition. The determination of the amount of impairments on the Company s investments is highly subjective and could materially impact results of operations or financial position. The Company could be forced to sell investments at a loss to meet policyholder withdrawals Computer viruses or network security breaches could affect the data processing systems of the Company or its business partners and could damage business and adversely affect financial condition and results of operations Insurance companies are highly regulated and are subject to numerous legal restrictions and regulations 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. New accounting rules or changes to existing accounting rules could negatively impact the Company 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. A rating downgrade could adversely affect the Company s ability to compete and increase the number or value of policies surrendered. Financial services companies are frequently the targets of litigation, including class action litigation, which could result in substantial judgments. The Company is exposed to the risks of natural disasters, pandemics, or other acts that could adversely affect the Company s operations. The Company is dependent on the performance of others Risk management policies and procedures may leave the Company exposed to unidentified or unanticipated risk, which could negatively affect business or result in losses.

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54473--2/27/2009--KANSAS_CITY_LIFE_INSURANCE_CO