Assurant 2010 Annual Report Download - page 85

F-15ASSURANT, INC.  2010 Form 10K
5 Investments
in-force with Shenandoah.  ere were no goodwill or intangible assets
associated with this agreement.
On October 1, 2008, the Company acquired 100% of the outstanding
stock of Signal Holdings LLC (“Signal”), a leading provider of wireless
handset protection programs and repair services.  e Company paid
$257,400 in cash for the acquisition, transfer and conveyance of
certain assets and assumed certain liabilities. In connection with the
acquisition, the Company recorded $59,400 of other intangible assets,
all of which are amortizable, and $169,800 of goodwill.  e factors that
contributed to the recognition of goodwill include the future expected
growth of Signal and the acquisition of key former Signal employees.
On September 26, 2008, the Company acquired the Warranty
Management Group business from GE Consumer & Industrial, a unit
of General Electric Co. (“GE”).  e Company paid GE $140,000 in
cash for the sale, transfer and conveyance of certain assets and assumed
certain liabilities. In connection with the acquisition of this business,
the Company recorded $126,840 of amortizable intangible assets and
$13,160 of goodwill.  e factors that contributed to the recognition of
goodwill include: marketing knowledge gained from the pre-existing
relationship, acquisition of key former GE employees and increased
sales opportunities not aff orded the Company under the pre-existing
relationship. As part of the acquisition, the Company entered into
a new 10-year agreement to market extended warranties and service
contracts on GE- branded major appliances in the U.S.
In a separate transaction, GE paid the Company $115,000 in cash and
the Company eliminated DAC by $106,000 and a receivable from GE
of $9,000, in connection with the termination of the existing strategic
alliance. Under the pre-existing relationship, the Company sold
extended warranties directly to GE appliance purchasers and through
leading retailers and paid commissions to GE. After the acquisition,
the Company assumed full responsibility for operating the extended
warranty business it previously co-managed and shared with GE.
 e results of operations of the Signal and GE Warranty Management
Group did not have a material eff ect on the Company’s results, and
accordingly, proforma information has not been disclosed.
4. Business Disposition
On May 1, 2008, the Company sold a subsidiary, United Family Life Insurance Company (“UFLIC”), to a third party for proceeds of $32,715.
 e Company recognized a pre-tax gain of $3,175 and an associated net tax benefi t of $84,864 from the sale.
5. Investments
 e following tables show the cost or amortized cost, gross unrealized gains and losses and fair value and OTTI of our fi xed maturity and equity
securities as of the dates indicated:
December 31, 2010
Cost or Amortized
Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI
Fixed maturity securities:
United States Government and government agencies
and authorities $ 244,659 $ 6,050 $ (1,198) $ 249,511 $ —
States, municipalities and political subdivisions 829,923 39,568 (4,657) 864,834 —
Foreign governments 617,164 32,789 (1,418) 648,535 —
Asset-backed 39,310 2,524 (84) 41,750 1,016
Commercial mortgage-backed 102,312 4,670 (11) 106,971 —
Residential mortgage-backed 764,884 36,842 (4,998) 796,728 4,741
Corporate 7,411,068 541,720 (48,565) 7,904,223 13,576
TOTAL FIXED MATURITY SECURITIES $ 10,009,320 $ 664,163 $ 60,931 $ 10,612,552 $ 19,333
Equity securities:
Common stocks $ 5,545 $ 1,029 $ (8) $ 6,566 $ —
Non-redeemable preferred stocks 447,103 32,238 (18,953) 460,388 —
TOTAL EQUITY SECURITIES $ 452,648 $ 33,267 $ 18,961 $ 466,954 $ 