850141--3/16/2006--HORACE_MANN_EDUCATORS_CORP

related topics

{loss, insurance, financial}

{control, financial, internal}

{competitive, industry, competition}

{tax, income, asset}

{capital, credit, financial}

{interest, director, officer}

{condition, economic, financial}

{regulation, government, change}

{regulation, change, law}

{operation, natural, condition}

{loan, real, estate}

{financial, litigation, operation}

Our markets are highly competitive and our financial condition and results of operations may be adversely affected if we do not remain competitive. Our financial condition and results of operations may be adversely affected by declining market conditions. If we are not able to effectively develop and expand our agent force and independent agent distribution systems, as well as maintain and secure product sponsorships by local, state and national education associations, our financial condition and results of operations could be adversely affected. Certain changes in accounting or financial reporting standards issued by the Financial Accounting Standards Board, the Securities and Exchange Commission or other standard-setting bodies may have an adverse affect on our financial condition, results of operations and/or cost of doing business. Our property and casualty loss reserves may not be adequate. Inaccuracies in assumptions regarding future persistency, mortality, morbidity and interest rates used in calculating life and annuity reserve and deferred policy acquisition expense amounts could have a material adverse impact on our net income. Catastrophic events can have a material adverse effect on our financial condition and results of operations. Our catastrophe management strategy may adversely affect premium and policy growth. Reduction of the statutory surplus of our insurance subsidiaries could adversely affect their ability to write insurance business. Any downgrade in the ratings of our insurance subsidiaries could adversely affect our business. Uncollectible reinsurance can have a material adverse effect upon our business volume and profitability. A reduction or elimination of the tax advantages of life and annuity products would adversely affect our operating results. 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. If we fail to correct certain material weaknesses in our internal controls or if we fail to maintain an effective system of internal controls once such material weaknesses are corrected, we may not be able to accurately report our financial results. 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. The insurance industry is highly regulated. The insurance industry is highly cyclical. Litigation may harm our financial strength or reduce our profitability. Quantitative and Qualitative Disclosures About Market Risk a.) Management s Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures b.) Management s Report on Internal Control Over Financial Reporting c.) Independent Registered Public Accounting Firm s Report on Internal Control Over Financial Reporting Report of Independent Registered Public Accounting Firm d). Changes in Internal Control Over Financial Reporting

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850141--3/16/2006--HORACE_MANN_EDUCATORS_CORP_/DE/