Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Avg
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New words:
cloud, delay, drafted, driver, duly, formatted, iii, incorrectly, Indenture, iv, led, macroeconomic, Manual, Mellon, Mellow, November, paul, pretax, Restated, Software, stage, successor, Supplemental, supplementally, supplementing, thereunto, track, Trustee, undersigned, user, vendor, XBRL
Removed:
categorization, pooling, tightening
Financial report summary
?Risks
- The Company is exposed to risks related to natural and man-made disasters and catastrophes, such as diseases, epidemics, pandemics, malicious acts, cyber attacks, terrorist acts, and climate change, which could adversely affect the Company’s operations and results.
- A disruption or cyber attack affecting the electronic, communication and information technology systems or other technologies of the Company or those on whom the Company relies could adversely affect the Company’s business, financial condition, and results of operations.
- Confidential information maintained in the systems of the Company or other parties upon which the Company relies could be compromised or misappropriated as a result of security breaches or other related lapses or incidents, damaging the Company’s business and reputation and adversely affecting its financial condition and results of operations.
- The Company’s results and financial condition may be negatively affected should actual experience differ from management’s models, assumptions, or estimates.
- The Company may not realize its anticipated financial results from its acquisitions strategy.
- The Company may experience competition in its acquisition segment.
- Assets allocated to the MONY Closed Block benefit only the holders of certain policies; adverse performance of Closed Block assets or adverse experience of Closed Block liabilities may negatively affect the Company.
- The Company is dependent on the performance of others.
- The Company’s risk management policies, practices, and procedures could leave it exposed to unidentified or unanticipated risks, which could negatively affect its business or result in losses.
- The Company’s strategies for mitigating risks arising from its day-to-day operations may prove ineffective resulting in a material adverse effect on its results of operations and financial condition.
- The Company may not be able to protect its intellectual property and may be subject to infringement claims.
- Developments in technology may impact our business.
- Interest rate fluctuations and sustained periods of low or high interest rates could negatively affect the Company’s interest earnings and spread income, or otherwise impact its business.
- The Company’s investments are subject to market and credit risks. These risks could be heightened during periods of extreme volatility or disruption in financial and credit markets.
- Credit market volatility or disruption could adversely impact the Company’s financial condition or results from operations.
- Disruption of the capital and credit markets could negatively affect the Company’s ability to meet its liquidity and financing needs.
- Equity market volatility could negatively impact the Company’s business.
- The Company’s use of derivative financial instruments within its risk management strategy may not be effective or sufficient.
- The Company’s ability to grow depends in large part upon the continued availability of capital.
- The Company could be forced to sell investments at a loss to cover policyholder withdrawals.
- Difficult general economic conditions could materially adversely affect the Company’s business and results of operations.
- The Company may be required to establish a valuation allowance against its deferred tax assets, which could have a material adverse effect on the Company’s results of operations, financial condition, and capital position.
- The Company could be adversely affected by an inability to access its credit facility.
- The amount of statutory capital or risk-based capital that the Company has and the amount of statutory capital or risk-based capital that it must hold to maintain its financial strength and credit ratings and meet other requirements can vary significantly from time to time and such amounts are sensitive to a number of factors outside of the Company’s control.
- A ratings downgrade or other negative action by a rating organization could adversely affect the Company.
- The Company operates as a holding company and depends on the ability of its subsidiaries to transfer funds to it to meet its obligations.
- The Company could be adversely affected by an inability to access FHLB lending.
- The Company’s securities lending program may subject it to liquidity and other risks.
- The Company’s financial condition or results of operations could be adversely impacted if the Company’s assumptions regarding the fair value and future performance of its investments differ from actual experience.
- Adverse actions of certain funds or their advisers could have a detrimental impact on the Company’s ability to sell its variable life and annuity products, or maintain current levels of assets in those products.
- The business of the Company is highly regulated and is subject to routine audits, examinations, and actions by regulators, law enforcement agencies, and self-regulatory organizations.
- The Company may be subject to regulations of, or regulations influenced by, international regulatory authorities or initiatives.
- NAIC actions, pronouncements and initiatives may affect the Company’s product profitability, reserve and capital requirements, financial condition, or results of operations.
- The Company’s use of captive reinsurance companies to finance statutory reserves related to its term and universal life products and to reduce volatility affecting its variable annuity products may be limited or adversely affected by regulatory action, pronouncements and interpretations.
- Laws, regulations, and initiatives related to unreported deaths and unclaimed property and death benefits may result in operational burdens, fines, unexpected payments, or escheatments.
- The Company is subject to insurance guaranty fund laws, rules and regulations that could adversely affect the Company’s financial condition or results of operations.
- The Company is subject to insurable interest laws, rules, and regulations that could adversely affect the Company’s financial condition or results of operations.
- The Healthcare Act and related regulations could adversely affect the results of operations or financial condition of the Company.
- Laws, rules, and regulations promulgated in connection with the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act may adversely affect the results of operations or financial condition of the Company.
- New and amended regulations regarding the standard of care or standard of conduct applicable to investment professionals, insurance agencies, and financial institutions that recommend or sell annuities or life insurance products may have a material adverse impact on our ability to sell annuities and other products and to retain in-force business and on our financial condition or results of operations.
- Changes to tax law, or interpretations of existing tax law could adversely affect the Company and its ability to compete with non-insurance products or reduce the demand for certain insurance products.
- Financial services companies are frequently the targets of legal proceedings, including class action litigation, which could result in substantial judgments.
- The financial services and insurance industries are sometimes the target of law enforcement investigations and the focus of increased regulatory scrutiny.
- New accounting rules, changes to existing accounting rules, or the grant of permitted accounting practices to competitors could negatively impact the Company.
- If our business does not perform well, we may be required to recognize an impairment of our goodwill and indefinite lived intangible assets which could adversely affect our results of operations or financial condition.
- The use of reinsurance introduces variability in the Company’s statements of income.
- The Company’s reinsurers could fail to meet assumed obligations, increase rates, terminate agreements or be subject to adverse developments that could affect the Company.
- The Company’s policy claims fluctuate from period to period resulting in earnings volatility.
- The Company operates in a mature, highly competitive industry, which could limit its ability to gain or maintain its position in the industry and negatively affect profitability.
- The Company’s ability to maintain competitive unit costs is dependent upon the level of new sales and persistency of existing business.
Management Discussion
- Our management and Board of Directors analyzes and assesses the operating performance of each segment using "pre-tax adjusted operating income (loss)" and "after-tax adjusted operating income (loss)". Consistent with GAAP accounting guidance for segment reporting, pre-tax adjusted operating income (loss) is our measure of segment performance. Pre-tax adjusted operating income (loss) is calculated by adjusting "income (loss) before income tax," by excluding the following items:
- •the amortization of deferred policy acquisition costs (“DAC”), value of business acquired (“VOBA”), and certain policy liabilities that is impacted by the exclusion of these items.
- After-tax adjusted operating income (loss) is derived from pre-tax adjusted operating income (loss) with the inclusion of income tax expense or benefits associated with pre-tax adjusted operating income. Income tax expense or benefits is allocated to the items excluded from pre-tax adjusted operating income (loss) at the statutory federal income tax rate for the associated period. Income tax expense or benefits allocated to after-tax adjusted operating income (loss) can vary period to period based on changes in our effective income tax rate.