Homeowners Insurance Market Opportunity
Summary of Risks (3/3)
38. Claims by others that we infringed their proprietary technology or other intellectual property rights could harm our business.
39. If we are unable to make acquisitions and investments, or successfully integrate them into our business, our business, results
of operations and financial condition could be adversely affected.
40. Recent U.S. tax legislation may materially adversely affect our financial condition, results of operations and cash flows.
59.
Our insurance company subsidiaries are subject to assessments and other surcharges from state guaranty funds, and
mandatory state insurance facilities, which may reduce our profitability.
60.
Performance of our investment portfolio is subject to a variety of investment risks that may adversely affect our financial
results.
41. We may not be able to utilize a portion of our net operating loss carryforwards ("NOLS") to offset future taxable income for U.S. 61. Unexpected changes in the interpretation of our coverage or provisions, including loss limitations and exclusions, in our policies
federal income tax purposes, which could adversely affect our net income and cash flows.
42. Our expansion strategy will subject us to additional costs and risks and our plans may not be successful.
43. Fluctuations in foreign currency exchange rates may adversely affect our financial results.
Risks Relating to Our Industry
44. The insurance business, including the market for homeowners insurance, is historically cyclical in nature, and we may
experience periods with excess underwriting capacity and unfavorable premium rates, which could adversely affect our
business.
45. We are subject to extensive insurance industry regulations.
46. A regulatory environment that requires rate increases to be approved and that can dictate underwriting practices and mandate
participation in loss sharing arrangements may adversely affect our results of operations and financial condition.
47. State insurance regulators impose additional reporting requirements regarding enterprise risk on insurance holding company
systems, with which we must comply as an insurance holding company.
48. The increasing adoption by states of cybersecurity regulations could impose additional compliance burdens on us and expose
us to additional liability.
49. The COVID-19 pandemic has caused disruption to our operations and may negatively impact our business, key metrics, or
results of operations in numerous ways that remain unpredictable.
could have a material adverse effect on our financial condition and results of operations.
Risks Relating to Ownership of Our Common Stock
62. There may not be an active trading market for our common stock, which may make it difficult to sell shares of our common
stock.
63. The market price of our common stock may be highly volatile, which could cause the value of your investment to decline.
64. There can be no assurance that the Company's securities will be approved for listing on NYSE or Nasdaq, as the case may be,
or that the Company will be able to comply with the continued listing standards of such exchange.
65.
If securities or industry analysts do not publish or cease publishing research or reports about us, our business or our markets,
or if they adversely change their recommendations or publish negative reports regarding our business or our stock, our stock
price and trading volume could materially decline.
66. Some provisions of our charter documents and Delaware law may have anti-takeover effects that could discourage an
acquisition of us by others, even if an acquisition would be beneficial to our stockholders, and may prevent attempts by our
stockholders to replace or remove our current management.
67.
Applicable insurance laws may make it difficult to effect a change of control.
68.
50.
Severe weather events and other catastrophes, including the effects of climate change, global pandemics and terrorism, are
inherently unpredictable and may have a material adverse effect on our financial results and financial condition.
51. We expect our results of operations to fluctuate on a quarterly and annual basis. In addition, our operating results and operating
metrics are subject to seasonality and volatility, which could result in fluctuations in our quarterly revenues and operating
results or in perceptions of our business prospects.
Our Amended Charter designates the Court of Chancery of the State of Delaware as the exclusive forum for certain litigation
that may be initiated by our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for
disputes with us.
69.
Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims
against us and may reduce the amount of money available to us.
70.
Taking advantage of the reduced disclosure requirements applicable to "emerging growth companies" may make our common
stock less attractive to investors.
52. An overall decline in economic activity could have a material adverse effect on the financial condition and results of operations 71. Failure to establish and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could
of our business.
53. We rely on data from our customers and third parties for pricing and underwriting our insurance policies and handling claims,
the unavailability or inaccuracy of which could limit the functionality of our products and disrupt our business.
54. Our results of operations and financial condition may be adversely affected due to limitations in the analytical models used to
assess and predict our exposure to catastrophe losses.
55. We are subject to payment processing risk.
56. Our success depends upon the continued growth and acceptance of our products and services.
57. Our actual incurred losses may be greater than our loss and loss adjustment expense reserves, which could have a material
adverse effect on our financial condition and results of operations.
58. Our insurance company subsidiaries are subject to minimum capital and surplus requirements, and failure to meet these
requirements could subject us to regulatory action.
have a material adverse effect on our business and stock price.
72. We depend on the ability of our subsidiaries to transfer funds to us to meet our obligations, and our insurance company
subsidiaries ability to pay dividends to us is restricted by law.
73.
We do not currently expect to pay any cash dividends.
74.
The requirements of being a public company, including compliance with the reporting requirements of the Exchange Act, the
requirements of the Sarbanes-Oxley Act and the Dodd-Frank Act and the listing standards of NYSE, may strain our resources,
increase our costs, and divert management's attention, and we may be unable to comply with these requirements in a timely or
cost-effective manner. In addition, key members of our management team have limited experience managing a public
company.
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