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• | FGL’s ability to protect its intellectual property; |
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• | difficulties arising from FGL’s and Front Street’s outsourcing relationships; |
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• | the impact on FGL’s and Front Street’s business of natural and of man-made catastrophes, pandemics, computer viruses, network security breaches, and malicious and terrorist acts; |
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• | FGL’s and Front Street’s ability to compete in a highly competitive industry; |
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• | FGL’s and Front Street’s ability to maintain competitive policy expense costs; |
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• | adverse consequences if the independent contractor status of FGL’s independent insurance marketing organizations (“IMOs”) is successfully challenged; |
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• | FGL’s ability to attract and retain national marketing organizations and independent agents; |
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• | the potential adverse tax consequences to FGL if FGL generates passive income in excess of operating expenses; |
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• | the significant operating and financial restrictions contained in FGL’s debt agreements, which may prevent FGL from capitalizing on business opportunities; |
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• | the impact on FGL and Front Street of non-performance of loans originated by Salus; and |
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• | the ability to maintain or obtain approval of the Iowa Insurance Division (“IID”) and other regulatory authorities as required for FGL’s operations and those of its insurance subsidiaries. |
Salus
Salus’ actual results or other outcomes may differ materially from those expressed or implied by the forward-looking statements contained herein due to a variety of important factors, including, without limitation, the following:
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• | Salus’ ability to recover amounts that are contractually owed to it and its ability to adequately address the various risks it faces in executing its business strategy; |
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• | Salus’ ability to orderly and efficiently wind-down its business and to address the variety of risks associated with such a process, including litigation risk, regulatory compliance and retention of employees, management, agents and advisors required for such wind-down; and |
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• | Salus’ ability to address a variety of other risks associated with its business, including the risk of fraud or theft, operational errors and systems malfunctions. |
See Note 13, Commitments and Contingencies, to the Company’s Condensed Consolidated Financial Statements included in Part I - Item 1. Financial Statements.
Information about our risk factors is contained in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended
September 30, 2016. We believe that at December 31, 2016, there has been no material changes to this information.
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Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
During the three months ended December 31, 2016, HRG did not sell any equity securities that were not registered under the Securities Act of 1933, as amended. On May 29, 2014, the HRG’s board of directors authorized a program to purchase up to $100.0 million of HRG’s shares of common stock. During the three months ended December 31, 2016, we did not repurchase any of our common stock. At December 31, 2016, there were $12.3 million of shares that may yet be repurchased under the plans of the program authorized by HRG’s board of directors.
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Item 3. | Defaults upon Senior Securities |
None.
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Item 4. | Mine Safety Disclosures |
Not applicable.
