Assurant 2010 Annual Report Download - page 19

13ASSURANT, INC.  2010 Form 10K
PART I
ITEM 1A Risk Factors
Sources of Liquidity
For a discussion of the Company’s sources and uses of funds, see
“Item 7—Management’s Discussion and Analysis of Financial Condition
and Results of Operations—Liquidity and Capital Resources,” and
Note 15 to the Consolidated Financial Statements contained elsewhere
in this report.
Taxation
For a discussion of tax matters aff ecting the Company and its operations,
see Note 8 to the Consolidated Financial Statements contained elsewhere
in this report.
Financial Information about Reportable Business
Segments
For fi nancial information regarding reportable business segments of
the Company, see “Item 7—Management’s Discussion and Analysis of
Financial Condition and Results of Operations,” and Note 23 to the
Consolidated Financial Statements contained elsewhere in this report.
Available Information
Our annual reports on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K, the Statements of Benefi cial Ownership
of Securities on Forms 3, 4 and 5 for our Directors and Offi cers and all
amendments to such reports, fi led or furnished pursuant to Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, as amended, are available
free of charge through the SEC website at www.sec.gov.  ese documents
are also available free of charge through the Investor Relations page of
our website (www.assurant.com) as soon as reasonably practicable after
fi ling. Other information found on our website is not part of this or
any other report fi led with or furnished to the SEC.
ITEM 1A Risk Factors
Certain factors may have a material adverse eff ect on our business, fi nancial condition and results of operations and you should carefully consider
them. It is not possible to predict or identify all such factors.
Risks Related to Our Company
Our revenues and profi ts may decline if we were unable
to maintain relationships with signifi cant clients,
distributors and other parties important to the success
of our business.
Our relationships and contractual arrangements with signifi cant clients,
distributors, original equipment manufacturers and other parties with
whom we do business are important to the success of our segments. Many
of these arrangements are exclusive. For example, in Assurant Solutions,
we have exclusive relationships with retailers and fi nancial and other
institutions through which we distribute our products, including an
exclusive distribution relationship with SCI relating to the distribution
of our preneed insurance policies. In Assurant Specialty Property, we
have exclusive relationships with mortgage lenders and manufactured
housing lenders, manufacturers and property managers. In Assurant
Health, we have exclusive distribution relationships for our individual
health insurance products with a major mutual insurance company as
well as a relationship with a well-known association through which we
provide many of our individual health insurance products. We also
maintain contractual relationships with several separate networks of
health and dental care providers, each referred to as a PPO, through
which we obtain discounts. Typically, these relationships and contractual
arrangements have terms ranging from one to fi ve years.
Although we believe we have generally been successful in maintaining our
clients, distribution and associated relationships, if these parties decline
to renew or seek to terminate these arrangements or seek to renew these
contracts on terms less favorable to us, our results of operations and
fi nancial condition could be materially adversely aff ected. For example,
a loss of one or more of the discount arrangements with PPOs could
lead to higher medical or dental costs and/or a loss of members to other
medical or dental plans. In addition, we are subject to the risk that these
parties may face fi nancial diffi culties, reputational issues or problems with
respect to their own products and services, which may lead to decreased
sales of our products and services. Moreover, if one or more of our clients
or distributors consolidate or align themselves with other companies, we
may lose business or suff er decreased revenues.
Sales of our products and services may be reduced if
we are unable to attract and retain sales representatives
or to develop and maintain distribution sources.
We distribute our insurance products and services through a variety of
distribution channels, including independent employee benefi ts specialists,
brokers, managing general agents, life agents, fi nancial institutions,
mortgage lenders and servicers, retailers, funeral homes, association
groups and other third-party marketing organizations.
Our relationships with these distributors are signifi cant both for our
revenues and profi ts. We do not distribute our insurance products and
services through captive or affi liated agents. In Assurant Health, we depend
in large part on the services of independent agents and brokers and on
associations in the marketing of our products. In Assurant Employee
Benefi ts, independent agents and brokers who act as advisors to our