904163--3/12/2010--AMERICAN_NATIONAL_INSURANCE_CO

related topics

{loss, insurance, financial}

{loan, real, estate}

{regulation, government, change}

{condition, economic, financial}

{system, service, information}

{operation, natural, condition}

{personnel, key, retain}

{financial, litigation, operation}

{regulation, change, law}

{competitive, industry, competition}

{tax, income, asset}

{gas, price, oil}

{capital, credit, financial}

{stock, price, operating}

{product, liability, claim}

Differences between risk assumptions used to price our products and actual experience could materially affect our profitability Increased claims activity resulting from catastrophic events, whether natural or man-made, may result in significant losses. As an insurance company, we face a significant risk of litigation and regulatory investigations, which may result in significant financial losses, harm our reputation, and prevent us from implementing our business strategy. The determination of the amount of allowances and impairments taken on our investments and the valuation allowance on the deferred income tax asset are judgmental and could materially impact our results of operations or financial position. Our investment portfolio includes fixed-income securities, equity securities, and commercial real estate, and fluctuations in these markets could adversely affect the valuation of our investment portfolio, our net investment income, and our overall profitability. Concentration of our investment portfolios in any particular segment of the economy may have adverse effects on the results of our operations and financial position. Some of our investments are relatively illiquid. A decline in equity markets or an increase in volatility in the equity markets may adversely affect sales and or financial results of our investment products. Defaults on our mortgage loans may adversely affect our profitability. We are controlled by a small number of stockholders. Our future results are dependent in part on our ability to successfully operate in insurance, annuity and investment product industries that are highly competitive. We may be unable to attract and retain sales representatives and third-party independent agents for our products. Our risk management policies and procedures may leave us exposed to unidentified or unanticipated risk, which could negatively affect our business. Reinsurance may not be available, affordable or adequate to protect us against losses. Emerging claim and coverage issues could negatively impact our business. Our financial results may be adversely affected by the cyclical nature of the property and casualty business in which we participate. Inflationary pressures on medical care costs, auto parts and repair, construction costs, and other economic factors may increase the amount we pay for claims and negatively affect our underwriting results. Interest rate fluctuations and other events may require us to accelerate the amortization of deferred policy acquisition costs ( DAC ), which could adversely affect our consolidated financial condition and results of operations. Changes in market interest rates may lead to a significant decrease in the sales and profitability of our spread-based products. If the counterparties to our reinsurance arrangements or to the derivative instruments we use to hedge our business risks default or fail to perform, we may be exposed to risks we had sought to mitigate, which could have a material adverse effect on our financial condition and results of operations. A downgrade or a potential downgrade in our financial strength ratings could result in a loss of business and could adversely affect our financial condition and results of operations. The continued threat of terrorism and ongoing military actions may adversely affect the level of claim losses we incur and the value of our investment portfolio. We are subject to extensive regulation, and potential further restrictive regulation may increase our operating costs and limit our growth. Changes in tax laws may decrease sales and profitability of certain products. Changes in U.S. federal and state securities laws and regulations may affect our operations and our profitability. New accounting rules or changes to existing accounting rules could negatively impact our business. Prohibition on the use of customer credit information in connection with pricing and underwriting could impact our ability to price policies and consequently our profitability. The occurrence of events that are unanticipated in our disaster recovery systems and business continuity planning could impair our ability to conduct business effectively. We may not be able to continue to be a low cost provider of property and casualty products due to the potential effects of the use of comparative rating software. If we are unable to maintain the availability of our systems and safeguard the security of our data, our ability to conduct our business may be compromised and our reputation may be harmed. Employee error and misconduct may be difficult to detect and prevent and may result in significant losses. Our business operations depend on our ability to appropriately execute and administer our policies and claims.

Full 10-K form ▸

904163--3/12/2010--AMERICAN_NATIONAL_INSURANCE_CO_/TX/