909815--2/28/2006--IPC_HOLDINGS

related topics

{stock, price, share}

{interest, director, officer}

{operation, natural, condition}

{operation, international, foreign}

{tax, income, asset}

{loss, insurance, financial}

{personnel, key, retain}

{provision, law, control}

{stock, price, operating}

Uncertainty related to estimated losses from hurricanes Katrina, Rita and Wilma may further materially impact our financial results. As of December 31, 2005, we estimated that the aggregate losses from hurricanes Katrina, Rita and Wilma for the year then ended was $977 million. The impact of these events may materially increase as our ultimate liability is established. We are rated by A.M. Best and S P, and a decline in these ratings could affect our standing among customers and cause our sales and earnings to decrease. As a result of the impact of hurricanes Katrina, Rita and Wilma on our financial condition, both A.M. Best and S P lowered our ratings from A+ to A. The reinsurance business is historically cyclical, and we have experienced, and can expect to experience in the future, periods with excess underwriting capacity and unfavorable premiums. If IPC Holdings subsidiary, IPCRe, is unable to obtain the necessary credit we may not be able to offer reinsurance in the U.S. Hurricane Katrina or other significant catastrophes may result in political, regulatory or industry initiatives which could adversely affect our business. IPC Holdings is a holding company, and consequently, it is dependent on IPCRe s and IPCUSL s payments of cash dividends or making of loans. Changes in the regulatory scheme under which we operate could result in material adverse effects on our operations. We are dependent on the business provided to us by reinsurance brokers, and we may be exposed to liability for brokers failure to make payments to clients for their claims. We are dependent on a small number of key employees. We may experience conflicts of interest with our principal shareholder that may be detrimental to our business. A significant amount of our assets is invested in fixed income and equity securities that are subject to market volatility. Increases in interest rates or fluctuations in currency exchange rates may cause us to experience losses. Risks Related to Our Shares We are a Bermuda company and it may be difficult for you to enforce judgments against us or our directors and executive officers. The rights of holders of our shares are governed by Bermuda law, which differs from U.S. law, and our bye-laws restrict shareholders from bringing legal action against our officers and directors. There are limitations on the ownership, transfers and voting rights of our shares. Shareholders investment could be materially adversely affected if we are deemed to be engaged in business in the U.S. If you acquire more than 10% of our shares, CFC rules may apply to you. Under certain circumstances, you may be required to pay taxes on your pro-rata share of IPCRe s or IPCRe Europe s related party insurance income.

Full 10-K form ▸

909815--2/28/2006--IPC_HOLDINGS_LTD