Assurant 2010 Annual Report Download - page 32

26 ASSURANT, INC.  2010 Form 10K
PART II
ITEM 6 Selected Financial Data
Dividend Policy
On January 14, 2011, our Board of Directors declared a quarterly
dividend of $0.16 per common share payable on March 14, 2011 to
stockholders of record as of February 28, 2011. We paid dividends of
$0.16 on December 13, 2010, September 14, 2010 and June 8, 2010
and $0.15 per common share on March 8, 2010. We paid dividends of
$0.15 on December 14, 2009, September 15, 2009 and June 9, 2009
and $0.14 per common share on March 9, 2009. Any determination
to pay future dividends will be at the discretion of our Board of
Directors and will be dependent upon: our subsidiaries’ ability to
make dividend and/or other statutorily permissible payments to us;
our results of operations and cash fl ows; our fi nancial position and
capital requirements; general business conditions; legal, tax, regulatory
and contractual restrictions on the payment of dividends; and other
factors our Board of Directors deems relevant.
We are a holding company and, therefore, our ability to pay dividends,
service our debt and meet our other obligations depends primarily on
the ability of our regulated U.S. domiciled insurance subsidiaries to
pay dividends and make other statutorily permissible payments to us.
Our insurance subsidiaries are subject to signifi cant regulatory and
contractual restrictions limiting their ability to declare and pay dividends.
See “Item 1A—Risk Factors—Risks Relating to Our Company— e
inability of our subsidiaries to pay suffi cient dividends to us could
prevent us from meeting our obligations and paying future stockholder
dividends.” For the calendar year 2011, the maximum amount of
dividends that our regulated U.S. domiciled insurance subsidiaries
could pay to us under applicable laws and regulations without prior
regulatory approval is approximately $614,362. Dividends or returns
of capital paid by our subsidiaries totaled $886,200 in 2010.
We may seek approval of regulators to pay dividends in excess of any
amounts that would be permitted without such approval. However,
there can be no assurance that we would obtain such approval if sought.
Payments of dividends on shares of common stock are subject to the
preferential rights of preferred stock that our Board of Directors may
create from time to time. For more information regarding restrictions
on the payment of dividends by us and our insurance subsidiaries,
including pursuant to the terms of our revolving credit facilities, see
“Item 7—Management’s Discussion and Analysis of Financial Condition
and Results of Operations—Liquidity and Capital Resources.”
In addition, our $350,000 revolving credit facility restricts payments
of dividends if an event of default under the facility has occurred or
a proposed dividend payment would cause an event of default under
the facility.
Management believes the Company will have suffi cient liquidity to
satisfy its needs over the next twelve months, including the ability to
pay interest on our Senior Notes and dividends on our common shares.
ITEM 6 Selected Financial Data
FIVEYEAR SUMMARY OF SELECTED FINANCIAL DATA
As of and for the years ended December 31,
2010 2009 2008 2007 2006
Consolidated Statement of Operations Data:
Revenues
Net earned premiums and other considerations $ 7,403,039 $ 7,550,335 $ 7,925,348 $ 7,407,730 $ 6,843,775
Net investment income 703,190 698,838 774,347 799,073 736,686
Net realized gains (losses) on investments (1) 48,403 (53,597) (428,679) (62,220) 111,865
Amortization of deferred gain on disposal of businesses 10,406 22,461 29,412 33,139 37,300
Fees and other income 362,684 482,464 300,800 275,793 340,958
TOTAL REVENUES 8,527,722 8,700,501 8,601,228 8,453,515 8,070,584
Benefi ts, losses and expenses
Policyholder benefi ts (2) 3,640,978 3,867,982 4,019,147 3,712,711 3,535,521
Amortization of deferred acquisition costs and value
of businesses acquired 1,521,238 1,601,880 1,671,680 1,429,735 1,186,710
Underwriting, general and administrative expenses 2,392,035 2,377,364 2,286,170 2,238,851 2,191,368
Interest expense 60,646 60,669 60,953 61,178 61,243
Goodwill impairment (3) 306,381 83,000 — — —
TOTAL BENEFITS, LOSSES AND EXPENSES 7,921,278 7,990,895 8,037,950 7,442,475 6,974,842
Income before provision for income taxes and cumulative
eff ect of change in accounting principle 606,444 709,606 563,278 1,011,040 1,095,742
Provision for income taxes (4) 327,267 279,032 115,482 357,294 379,871
Net income before cumulative eff ect of change
in accounting principle 279,177 430,754 447,796 653,746 715,871
Cumulative eff ect of change in accounting principle (5) — — — — 1,547
NET INCOME $ 279,177 $ 430,574 $ 447,796 $ 653,746 $ 717,418