Assurant 2011 Annual Report Download - page 49

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ASSURANT, INC.2011 Form10-K 41
PARTII
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
reduction may be above or below the range. We currently estimate
the adoption of these amendments will result in immaterial changes
in net income in 2011 and in the years preceding 2011 to which the
retrospective adoption will be applied.  e amendments are generally
more restrictive with regard to which costs can be deferred and may
impact the pattern of reported income for certain products. Due to our
overall mix of business we do not currently expect the amendments to
cause material changes to net income.
Results of Operations
Assurant Consolidated
Overview
e table below presents information regarding our consolidated results of operations:
For the Years Ended December31,
2011 2010 2009
Revenues:
Net earned premiums and other considerations $ 7,125,368 $ 7,403,039 $ 7,550,335
Net investment income 689,532 703,190 698,838
Net realized gains (losses) on investments 32,580 48,403 (53,597)
Amortization of deferred gains on disposal of businesses 20,461 10,406 22,461
Fees and other income 404,863 362,684 482,464
Total revenues 8,272,804 8,527,722 8,700,501
Bene ts, losses and expenses:
Policyholder bene ts 3,755,209 3,640,978 3,867,982
Selling, underwriting and general expenses(1) 3,742,280 3,913,273 3,979,244
Interest expense 60,360 60,646 60,669
Total bene ts, losses and expenses 7,557,849 7,614,897 7,907,895
Segment income before provision for income taxes and goodwill impairment 714,955 912,825 792,606
Provision for income taxes 169,116 327,267 279,032
Segment income before goodwill impairment 545,839 585,558 513,574
Goodwill impairment — 306,381 83,000
NET INCOME $ 545,839 $ 279,177 $ 430,574
(1) Includes amortization of DAC and VOBA and underwriting, general and administrative expenses.
Year Ended December 31, 2011 Compared to the Year
Ended December 31, 2010
Net income increased $266,662, or 96%, to $545,839 for Twelve
Months 2011 from $279,177 for Twelve Months 2010. Twelve Months
2010 included a $306,381 non-cash goodwill impairment charge.
Absent this charge, net income decreased $39,719 or 7%.  e decline
is primarily attributable to decreased net income in our Assurant
Specialty Property segment mainly due to an increase in reportable
catastrophe losses of $87,673 (after-tax) in Twelve Months 2011 and
declines in net income at our Assurant Health and Assurant Employee
Bene ts segments. Partially o setting these items was improved net
income in our Assurant Solutions segment and an $80,000 release of
a capital loss valuation allowance related to deferred tax assets during
Twelve Months 2011.
Year Ended December 31, 2010 Compared to the Year
Ended December 31, 2009
Net income decreased $151,397, or 35%, to $279,177 for Twelve Months
2010 from $430,574 for Twelve Months 2009. Twelve Months 2010
includes $107,075 (after-tax) of improved segment results and $66,300
(after-tax) of increased realized gains on investments, compared with
Twelve Months 2009. However, results decreased primarily due to a
non-cash goodwill impairment charge of $306,381 in Twelve Months
2010 compared with an $83,000 non-cash goodwill impairment charge
in Twelve Months 2009. In addition, Twelve Months 2009 includes
an $83,542 (after-tax) favorable legal settlement.