701869--3/16/2009--INDEPENDENCE_HOLDING

related topics

{loss, insurance, financial}

{system, service, information}

{tax, income, asset}

{loan, real, estate}

{regulation, change, law}

{capital, credit, financial}

{stock, price, operating}

{regulation, government, change}

{product, market, service}

{condition, economic, financial}

Our investment portfolio is subject to various risks that may result in realized investment losses. In particular, decreases in the fair value of fixed maturities may greatly reduce the value of our investments, and as a result, our financial condition may suffer. Our earnings could be materially affected by an impairment of goodwill. Changes in state and federal regulations, or the application thereof, may adversely affect our business, financial condition and results of operations. If rating agencies downgrade our insurance companies, our results of operations and competitive position in the industry may suffer. Given the current economic and political climates, 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. Our loss reserves are based on an estimate of our future liability, and if actual claims prove to be greater than our reserves, our results of operations and financial condition may be adversely affected. Our results may fluctuate as a result of factors generally affecting the insurance and reinsurance industry. Our inability to assess underwriting risk accurately could reduce our net income. If we fail to comply with extensive state and federal regulations, we will be subject to penalties, which may include fines and suspension and which may adversely affect our results of operations and financial condition. We may be unsuccessful in competing against larger or better-established business rivals. We rely on reinsurance arrangements to help manage our business risks, and failure to perform by the counterparties to our reinsurance arrangements may expose us to risks we had sought to mitigate. We may be required to accelerate the amortization of deferred acquisition costs, which would increase our expenses and reduce profitability. The failure to maintain effective and efficient information systems could adversely affect our business. Failure to protect our policyholder s confidential information and privacy could adversely affect our business.

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701869--3/16/2009--INDEPENDENCE_HOLDING_CO