Assurant 2007 Annual Report Download - page 15

Assurant Annual Report 11
In 2007, Assurant Specialty Property
leveraged its leading market position in
creditor-placed homeowners insurance
and a mild hurricane season to deliver
strong return on equity, 57% year-over-
year growth in net operating income and
39% growth in net earned premiums.
Entering 2007, Assurant Specialty Property looked to
continue riding the wave of positive momentum the
business had generated in prior years. Although market
conditions remained uid and dynamic, the investments
the business had made to differentiate itself from its
competitors—in people, processes and advanced loan
tracking technology—combined with its customer-centric
focus, proved to be effective differentiators again in 2007.
Leading the way was the creditor-placed homeowners
business. Growth in the product was driven largely by an
increase in total average insured values and an increase
in policy penetration rates. As lenders sought additional
policy coverage from Assurant, the business was able
to meet evolving client needs with timely and customized
solutions. The cumulative effect of these market forces
and an unusually mild hurricane season resulted in
considerable growth in our top and bottom lines.
Behind the scenes, the business continued to take
additional steps to generate future growth by leveraging
its unique capabilities and extending them to logical,
adjacent market opportunities. Assurant now actively
tracks more than 30 million mortgage loans for adequate
insurance coverage every day. The business will continue
to apply administrative and technological advantages to
emerging market segments such as creditor-placed auto,
renters and equipment leasing. By maintaining a diverse
spread of risk, a strong balance sheet and close alignment
with industry leaders, the business is executing on its
specialty strategy today and is well equipped to deliver
continued growth over the long term.
The business also demonstrated its commitment to service
excellence during the tragic wildres that impacted
Southern California residents in late 2007. Equipped with
satellite communication and processing technology, the
Assurant Catastrophe Team and its rapid response unit
were mobilized immediately to the area, and the business
was able to adjust and settle over 90% of its dwelling,
re and homeowners claims within the rst 30 days. Of
all the achievements in 2007, the business is most proud
of being there for its clients’ customers when they were
most needed.