913144--2/20/2009--RENAISSANCERE_HOLDINGS

related topics

{loss, insurance, financial}

{regulation, change, law}

{acquisition, growth, future}

{condition, economic, financial}

{financial, litigation, operation}

{debt, indebtedness, cash}

{operation, international, foreign}

{loan, real, estate}

{system, service, information}

{competitive, industry, competition}

{product, liability, claim}

{operation, natural, condition}

{capital, credit, financial}

{personnel, key, retain}

{interest, director, officer}

{provision, law, control}

{investment, property, distribution}

{tax, income, asset}

{regulation, government, change}

Our exposure to catastrophic events and other exposures that we cover could cause our financial results to vary significantly from one period to the next. We may fail to execute our strategy, which would impair our future financial results. A decline in the ratings assigned to our financial strength may adversely impact our business, perhaps materially so. Because we depend on a few insurance and reinsurance brokers in our Reinsurance segment and several third party program managers in our Individual Risk segment for a large portion of revenue, loss of business provided by them could adversely affect us. Our utilization of brokers, third party program managers and other third parties to support our business exposes us to operational and financial risks. Our claims and claim expense reserves are subject to inherent uncertainties. The emergence of matters which may impact certain of our coverages, such as the asserted trend toward potentially significant global warming and the ongoing financial crisis, could cause us to underestimate our exposures and potentially adversely impact our financial results, perhaps significantly. A sustained weakness or weakening in business and economic conditions generally or specifically in the principal markets in which we do business could adversely affect our business and operating results. Deterioration in the investment markets and economic conditions could lead to additional investment losses. Some of our investments are relatively illiquid and are in asset classes that have been experiencing significant market valuation fluctuations. The determination of the impairments taken on our investments is highly subjective and could materially impact our financial position or results of operations. We are unable to predict the effect that governmental actions for the purpose of stabilizing the financial markets will have on such markets generally or on the Company in particular. A decline in our investment performance could reduce our profitability and hinder our ability to pay claims promptly in accordance with our strategy. We are exposed to counterparty credit risk, including with respect to reinsurance brokers. Retrocessional reinsurance may become unavailable on acceptable terms. Emerging claim and coverage issues, or other litigation, could adversely affect us. The loss of key senior members of management could adversely affect us. U.S. taxing authorities could contend that one or more of our Bermuda subsidiaries are subject to U.S. corporate income tax, as a result of changes in law or regulations, or otherwise. Regulatory challenges in the U.S. or elsewhere to our Bermuda operations claims of exemption from insurance regulation could restrict our ability to operate, increase our costs, or otherwise adversely impact us. Operational risks, including systems or human failures, are inherent in business, including ours. We may be adversely affected by foreign currency fluctuations. We may require additional capital in the future, which may not be available or only available on unfavorable terms. The covenants in our debt agreements limit our financial and operational flexibility, which could have an adverse effect on our financial condition. Because we are a holding company, we are dependent on dividends and payments from our subsidiaries. Acquisitions or strategic investments that we made or may make could turn out to be unsuccessful. Results in certain of our newer or potentially expanding business lines could cause significant volatility in our consolidated financial statements. We could be adversely impacted by a failure to comply with the terms of the Company s settlement agreement with the SEC. Some aspects of our corporate structure may discourage third party takeovers and other transactions or prevent the removal of our current board of directors and management. Investors may have difficulties in serving process or enforcing judgments against us in the U.S. The reinsurance business is historically cyclical and the pricing and terms for our products may decline, which could affect our profitability. Recent or future legislation may decrease the demand for our property catastrophe reinsurance products and adversely affect our business and results of operations. Other political, regulatory and industry initiatives could adversely affect our business. We operate in a highly competitive environment. Consolidation in the (re) insurance industry could adversely impact us. The Organization for Economic Cooperation and Development ( OECD ) and the European Union are considering measures that might increase our taxes and reduce our net income. Regulatory regimes and changes to accounting rules may adversely impact financial results irrespective of business operations. Heightened scrutiny of issues and practices in the insurance industry may adversely affect our business.

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913144--2/20/2009--RENAISSANCERE_HOLDINGS_LTD