814181--4/2/2008--PENN_TREATY_AMERICAN

related topics

{loss, insurance, financial}

{financial, litigation, operation}

{personnel, key, retain}

{operation, international, foreign}

{capital, credit, financial}

{regulation, government, change}

{tax, income, asset}

{acquisition, growth, future}

{system, service, information}

{stock, price, share}

{provision, law, control}

{condition, economic, financial}

We may not have enough statutory capital and surplus to continue to write business Our reserves for current and future claims may be inadequate and any increase to such reserves could have a material adverse effect on our financial condition and results of operations. Our unamortized deferred policy acquisition cost asset may not be fully recoverable, which would result in an impairment charge and could materially adversely affect our financial condition and results of operations. Our reinsurance agreements with Imagine International Reinsurance Limited are subject to an aggregate limit of liability, which, if exceeded, could adversely affect our financial condition and results of operations. We may have insufficient capital and surplus to commute our reinsurance agreement with Imagine International Reinsurance Limited, which could adversely affect our financial condition and results of operations. Our reinsurers may not satisfy their obligations to us, which could materially adversely affect our financial condition and results of operations. We could suffer a loss if our premium rates are not adequate and we are unable to obtain necessary state approvals for premium rate increases. Our failure to timely file periodic reports with the Securities and Exchange Commission ( SEC ) could result in enforcement action by the SEC, stock exchange delisting actions or shareholder lawsuits. Legal and regulatory investigations are increasingly common in the insurance business and may result in financial losses and harm our reputation. We may suffer reduced income if governmental authorities change the regulations applicable to the insurance industry. Our business could be materially adversely affected if our financial strength ratings are downgraded; we may not be able to compete successfully with insurers that have greater financial resources or better financial strength ratings. Our business could be materially adversely affected if we were unable to continue selling policies in key states. Our success depends on our ability to attract and retain qualified, experienced personnel. We may not complete any transaction as a result of our evaluation of strategic alternatives. If demand for long-term care insurance continues to decline, we will not be able to execute our strategy of strengthening our position as a leading provider of long-term care insurance. We may not be able to compete successfully if we cannot recruit and retain insurance agents. Litigation may result in financial losses or harm our reputation and may divert management resources. Our investment performance may affect our financial results and ability to conduct business We may be adversely affected by interest rate changes. Certain anti-takeover provisions in state law and our Articles of Incorporation may make it more difficult to acquire us and thus may depress the market price of our common stock. The exercise of our outstanding stock options and any future issuances of new shares of our common stock may result in significant dilution to our existing shareholders. Our computer systems may fail or their security may be compromised, which could damage our business and adversely affect our financial condition and results of operations.

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814181--4/2/2008--PENN_TREATY_AMERICAN_CORP