Assurant 2010 Annual Report Download - page 59

53ASSURANT, INC.  2010 Form 10K
PART II
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cash Flows
We monitor cash fl ows at the consolidated, holding company and subsidiary levels. Cash fl ow forecasts at the consolidated and subsidiary levels are
provided on a monthly basis, and we use trend and variance analyses to project future cash needs making adjustments to the forecasts when needed.
 e table below shows our recent net cash fl ows:
For the Years Ended December 31,
2010 2009 2008
Net cash provided by (used in):
Operating activities (1) $ 540,313 $ 278,963 $ 976,857
Investing activities (8,876) 141,467 (329,003)
Financing activities (699,473) (142,562) (412,134)
NET CHANGE IN CASH $ 168,036 $ 277,868 $ 235,720
(1) Includes effect of exchange rates changes on cash and cash equivalents.
Cash Flows for the Years Ended
December 31, 2010, 2009 and 2008
Operating Activities
We typically generate operating cash infl ows from premiums collected
from our insurance products and income received from our investments
while outfl ows consist of policy acquisition costs, benefi ts paid, and
operating expenses.  ese net cash fl ows are then invested to support the
obligations of our insurance products and required capital supporting
these products. Our cash fl ows from operating activities are aff ected
by the timing of premiums, fees, and investment income received and
expenses paid.
Net cash provided by operating activities was $540,313 and $278,963
for the years ended December 31, 2010 and 2009, respectively.  e
increased operating activity cash fl ow is primarily due to an increase in
net written premiums in our Assurant Solutions and Assurant Specialty
Property segments.
Net cash provided by operating activities was $278,963 and $976,857
for the years ended December 31, 2009 and 2008, respectively.  e
decrease in cash provided by operating activities was primarily due to
reduced gross written premium and greater claim payments made in
2009, primarily the result of deteriorating economic conditions and
payments associated with hurricanes Ike and Gustav which occurred
in the second half of 2008.
Investing Activities
Net cash (used in) provided by investing activities was $(8,876)
and $141,467 for the years ended December 31, 2010 and 2009,
respectively.  e change in investing activities is primarily due to an
increase in purchases of fi xed maturity securities and changes in our
short-term investments.
Net cash provided by (used in) investing activities was $141,467
and $(329,003) for the years ended December 31, 2009 and 2008,
respectively.  e change in investing activities was primarily due to
fewer purchases of short-term investments, commercial mortgage
loans, fi xed maturity securities and equity securities, partially off set by
a decrease in sales of fi xed maturity and equity securities.
Financing Activities
Net cash used in fi nancing activities was $699,473 and $142,562
for the years ended December 31, 2010 and 2009, respectively.  e
increase in cash used in fi nancing activities is primarily due to increased
repurchases of our common stock and changes in our obligation under
securities lending.
Net cash used in fi nancing activities was $142,562 and $412,134
for the years ended December 31, 2009 and 2008, respectively.  e
decrease in cash used in fi nancing activities was primarily due to the
change in obligation under securities lending, fewer repurchases of
common stock and a decrease in the redemption of mandatorily
redeemable preferred stock.
 e table below shows our cash outfl ows for interest and dividends for the periods indicated:
For the Years Ended December 31,
2010 2009 2008
Security
Interest paid on mandatory redeemable preferred stock and debt $ 60,539 $ 60,569 $ 60,859
Common stock dividends 69,618 69,596 63,672
TOTAL $ 130,157 $ 130,165 $ 124,531