949156--3/16/2009--MEADOWBROOK_INSURANCE_GROUP

related topics

{loss, insurance, financial}

{condition, economic, financial}

{product, market, service}

{debt, indebtedness, cash}

{competitive, industry, competition}

{stock, price, share}

{tax, income, asset}

{cost, operation, labor}

{acquisition, growth, future}

{system, service, information}

{personnel, key, retain}

{provision, law, control}

{investment, property, distribution}

{operation, natural, condition}

{customer, product, revenue}

Severe weather conditions and other catastrophes may result in an increase in the number and amount of claims incurred. If market conditions cause our reinsurance to be more costly or unavailable, we may be required to bear increased risks or reduce the level of our underwriting commitments. We are subject to credit risk with respect to the obligations of our reinsurers and risk-sharing partners. The inability of our reinsurers or risk-sharing partners to meet their obligations could adversely affect our profitability. We face competitive pressures in our business that could cause our revenues to decline and adversely affect our profitability. Our results may fluctuate as a result of many factors, including cyclical changes in the insurance industry. Our success depends on our ability to appropriately price the risks we underwrite. The failure of any of the loss limitation methods we employ could have a material adverse effect on our results of operations and financial condition. Our investment results and, therefore, our financial condition may be impacted by changes in the business, financial condition or operating results of the entities in which we invest, as well as changes in government monetary policies, general economic conditions and overall capital market conditions, all of which impact interest rates. We could be forced to sell investments to meet our liquidity requirements. If our businesses do not perform well, we may be required to recognize an impairment of our goodwill, which could have a material adverse effect on our results of operations and financial condition. Because we are heavily regulated by the states in which we operate, we may be limited in the way we operate. Our reliance on producers subjects us to their credit risk. Provisions of the Michigan Business Corporation Act, our articles of incorporation and other corporate governing documents and the insurance laws of Michigan and Missouri may discourage takeover attempts. Most states assess our Insurance Company Subsidiaries to provide funds for failing insurance companies and those assessments could be material. We may require additional capital in the future, which may not be available or may only be available on unfavorable terms. Our status as an insurance holding company with no direct operations could adversely affect our ability to meet our debt obligations and pay shareholder dividends. Our performance is dependent on the continued services and performance of our senior management and other key personnel. Although we have paid cash dividends in the past, we may not pay cash dividends in the future. We rely on our information technology and telecommunications systems to conduct our business. Managing technology initiatives and obtaining the efficiencies anticipated with technology implementation may present significant challenges.

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949156--3/16/2009--MEADOWBROOK_INSURANCE_GROUP_INC