Assurant 2007 Annual Report Download - page 13

Assurant Annual Report 9
Like water that is being brought to a boil, Assurant
Solutions’ long-term growth strategy is being realized
steadily over time. The priorities for 2007 were unchanged
from the previous year, and the business continued to
diligently advance them: investing for growth, leveraging
successful products and services across markets, capitalizing
on targeted acquisition opportunities and implementing
with energy, passion and excellence. The impact of
slowing economic growth in the retail sector presented
challenges for the market as a whole during the year.
However, these developments and expected runoffs
in other noncore businesses did not distract Assurant
Solutions from its strategic priorities.
Assurant Solutions delivered solid top-line growth in
2007, with a 10% increase in net earned premiums over
the prior year. These results were driven primarily by
domestic and international extended service contracts.
Expansion through targeted, strategic acquisition
broadened reach and improved competitive positioning
for the long term. In 2007, Assurant acquired Swansure
and Centrepoint in the United Kingdom; the combination
expands distribution in the UK for the business’s mortgage
payment protection products. The business also completed
its acquisition of Mayower National Life Insurance
Company and extended its exclusive preneed distribution
agreement with Service Corporation International (SCI)—
a key strategic partner through which the business’s
prefunded funeral plans are distributed.
The strength of the Assurant business model is most
revealed in trying economic times. Argentina offers a
prime example of the benets of long-term focus and
a patient, persistent approach. In 2002, as the country
grappled with an economic and currency crisis, many of
Assurant’s competitors left the market while Assurant
rode out the storm. By delivering exible, customized
solutions that help build the value of clients’ businesses,
Assurant was able to create solid, long-term partnerships
with market leaders. By 2007, ve years after the crisis,
Assurant had captured 65% of the extended service contract
market and had established relationships with the leading
private banks for its credit insurance products. With its
infrastructure rmly in place, Assurant is well positioned
for long-term protable growth in Latin and South
America beyond 2007.
The core elements that make Assurant as a whole a
compelling investment are found within Assurant Solutions.
Disciplined risk management, focused expertise and
detailed execution of the strategy allow Solutions to create
value for shareholders, customers and employees over the
long term.
In 2007, Assurant Solutions continued
to pursue its targeted growth areas:
international expansion, extended service
contracts and preneed. Highly focused
acquisitions, the extension of an exclusive
distribution partnership and disciplined
execution highlighted our activities.