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These excerpts taken from the MIGP 10-K filed Mar 16, 2009. General
Economic Conditions
A disruption in world financial markets could adversely affect
demand for the Group’s products, and credit risk associated
with agents, customers, and reinsurers, as well as adversely
affecting the Group’s investment portfolio value and
investment income. Disrupted markets could also adversely affect
the Group’s ability to raise additional capital if it
needed to do so in the future.
A prolonged downturn in the construction segment of the economy
would have a continued negative effect on the Group’s
premium volume through fewer construction risks to insure and
reduced premiums for those contractors that remain in business.
During the second half of 2008, there were significant
disruptions to the financial and equity markets. This resulted
from, in part, failures of financial institutions on an
unprecedented scale, and caused a significant reduction in
liquidity and trading flows in the credit markets in addition to
a dramatic widening in credit spreads. Such impacts affected the
valuations of both the fixed income and equity securities held
by the Group. If the financial and equity markets continue their
adverse performance, the Group’s business and
stockholders’ equity could be adversely affected.
General Economic Conditions A disruption in world financial markets could adversely affect demand for the Group’s products, and credit risk associated with agents, customers, and reinsurers, as well as adversely affecting the Group’s investment portfolio value and investment income. Disrupted markets could also adversely affect the Group’s ability to raise additional capital if it needed to do so in the future. A prolonged downturn in the construction segment of the economy would have a continued negative effect on the Group’s premium volume through fewer construction risks to insure and reduced premiums for those contractors that remain in business. During the second half of 2008, there were significant disruptions to the financial and equity markets. This resulted from, in part, failures of financial institutions on an unprecedented scale, and caused a significant reduction in liquidity and trading flows in the credit markets in addition to a dramatic widening in credit spreads. Such impacts affected the valuations of both the fixed income and equity securities held by the Group. If the financial and equity markets continue their adverse performance, the Group’s business and stockholders’ equity could be adversely affected.
General Economic Conditions A disruption in world financial markets could adversely affect demand for the Group’s products, and credit risk associated with agents, customers, and reinsurers, as well as adversely affecting the Group’s investment portfolio value and investment income. Disrupted markets could also adversely affect the Group’s ability to raise additional capital if it needed to do so in the future. A prolonged downturn in the construction segment of the economy would have a continued negative effect on the Group’s premium volume through fewer construction risks to insure and reduced premiums for those contractors that remain in business. During the second half of 2008, there were significant disruptions to the financial and equity markets. This resulted from, in part, failures of financial institutions on an unprecedented scale, and caused a significant reduction in liquidity and trading flows in the credit markets in addition to a dramatic widening in credit spreads. Such impacts affected the valuations of both the fixed income and equity securities held by the Group. If the financial and equity markets continue their adverse performance, the Group’s business and stockholders’ equity could be adversely affected.
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