850141--2/28/2008--HORACE_MANN_EDUCATORS_CORP

related topics

{loss, insurance, financial}

{competitive, industry, competition}

{condition, economic, financial}

{tax, income, asset}

{capital, credit, financial}

{personnel, key, retain}

{regulation, government, change}

{operation, natural, condition}

{product, market, service}

{loan, real, estate}

{financial, litigation, operation}

The insurance industry is highly regulated. The insurance industry is highly cyclical. The personal lines insurance and annuity markets are highly competitive and our financial condition and results of operations may be adversely affected by competitive forces. Economic and other factors affecting our niche market could adversely impact our financial condition and results of operations. Litigation may harm our financial strength or reduce our profitability. A reduction or elimination of the tax advantages of life and annuity products and/or a change in the tax benefits of various government-authorized retirement programs, such as 403(b) annuities and IRAs, could make our products less attractive to clients and adversely affect our operating results. Our property and casualty loss reserves may not be adequate. Deviations from assumptions regarding future persistency, mortality, morbidity, interest spreads and market appreciation used in calculating life and annuity reserves and deferred policy acquisition expense amounts could have a material adverse impact on our financial condition and results of operations. Any downgrade in or decline in outlook for our claims-paying, financial strength or credit ratings could adversely affect our financial condition and results of operations. Reduction of the statutory surplus of our insurance subsidiaries could adversely affect their ability to write insurance business. If we are not able to effectively develop and expand our agency operations, including our agent force and their licensed producers and support staff, our financial condition and results of operations could be adversely affected. If we are not able to maintain and secure 1) payroll reduction authorizations and 2) product sponsorships and other relationships with the educational community, our financial condition and results of operations could be adversely affected. Catastrophic events can have a material adverse effect on our financial condition and results of operations. Uncollectible reinsurance, as well as reinsurance availability and pricing, can have a material adverse effect upon our business volume and profitability. Losses due to defaults by others could reduce our profitability or negatively affect the value of our investments. If our investment strategy is not successful, we could suffer unexpected losses. Our financial condition and results of operations may be adversely affected by declining financial market conditions. Interest rate fluctuations could negatively affect the income we derive from the difference between the interest rates we earn on our investments and the interest we pay under our annuity contracts. Successful execution of our growth strategy is highly dependent on effective implementation of new technology solutions.

Full 10-K form ▸

850141--2/28/2008--HORACE_MANN_EDUCATORS_CORP_/DE/