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ASSURANT, INC.2011 Form10-KF-6
Consolidated Statement of Cash Flows
YEARS ENDED DECEMBER 31, 2011, 2010 AND 2009
(in thousands)
2011 2010 2009
Operating activities
Net income $ 545,839 $ 279,177 $ 430,574
Adjustments to reconcile net income to net cash provided by operating activities:
Change in reinsurance recoverable (417,693) (761,453) (212,187)
Change in premiums and accounts receivable (105,171) (35,318) 2,657
Change in deferred acquisition costs and value of business acquired (159,409) 49,797 254,374
Change in other intangible assets (31,585) (83,303) (42,849)
Change in accrued investment income (7,532) 9,844 (6,896)
Change in insurance policy reserves and expenses 737,454 578,714 (185,053)
Change in accounts payable and other liabilities 124,658 (58,361) (137,791)
Change in commissions payable (14,364) 56,075 (18,514)
Change in reinsurance balances payable 25,730 7,738 5,330
Change in funds held under reinsurance (285) (4,191) 26,304
Change in securities classi ed as trading 32,777 (7,889) 15,566
Change in income taxes 26,954 (26,345) 5,623
Change in tax valuation allowance (80,584) 9,049 (16,715)
Amortization of deferred gain on disposal of businesses (20,460) (10,406) (22,461)
Depreciation and amortization 129,391 126,602 113,799
Net realized (gains) losses on investments (32,580) (48,403) 53,597
Stock based compensation expense 36,888 34,591 30,288
Change in tax bene t from share-based payment arrangements 3,267 6,712 1,790
Goodwill impairment — 306,381 83,000
Other intangible asset impairment — 47,612 —
Other 62,009 64,119 (110,511)
NET CASH PROVIDED BY OPERATING ACTIVITIES 855,304 540,742 269,925
Investing activities
Sales of:
Fixed maturity securities available for sale 1,556,894 1,774,912 1,315,003
Equity securities available for sale 120,445 94,798 78,030
Other invested assets 50,600 51,812 31,117
Property and equipment and other 3,823 380 1,548
Maturities, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale 949,950 867,850 624,113
Commercial mortgage loans on real estate 96,552 127,814 90,523
Purchase of:
Fixed maturity securities available for sale (2,643,277) (2,921,075) (2,123,394)
Equity securities available for sale (34,556) (23,702) (48,935)
Commercial mortgage loans on real estate (88,649) (36,226) (18,400)
Other invested assets (66,499) (76,157) (49,957)
Property and equipment and other (35,747) (51,211) (55,885)
Subsidiaries and warranty business, net of cash transferred(1) (45,080) (11,560) 4,923
Change in short-term investments (90,368) 95,768 254,590
Change in policy loans 1,887 373 1,964
Change in collateral held/pledged under securities agreements 27,437 97,348 36,227
NET CASH USED IN PROVIDED BY INVESTING ACTIVITIES 196,588 8,876 141,467
Financing activities
Repayment of mandatorily redeemable preferred stock (5,000(3,160(3,000
Change in tax bene t from share-based payment arrangements (3,267(6,712(1,790
Acquisition of common stock (533,848(522,546(31,949
Dividends paid (67,385(69,618(69,596
Change in obligation under securities agreements (27,437(97,348(36,227
Change in receivables under securities loan agreements 14,370 (14,370—
Change in obligations to return borrowed securities (14,28114,281 —
NET CASH USED IN FINANCING ACTIVITIES 636,848 699,473 142,562
E ect of exchange rate changes on cash and cash equivalents (5,671(4299,038
Change in cash and cash equivalents 16,197 (168,036277,868
Cash and cash equivalents at beginning of period 1,150,516 1,318,552 1,040,684
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,166,713 $ 1,150,516 $ 1,318,552
Supplemental information:
Income taxes paid, net of refunds $ 218,372 $ 341,148 $ 328,264
Interest paid on mandatorily redeemable preferred stock and debt $ 60,244 $ 60,539 $ 60,569
(1) 2011 includes the acquisition of SureDeposit. 2010 includes three acquisitions that individually and in the aggregate are immaterial. 2009 includes the acquisition of a block of business
from Shenandoah Life Insurance Company (acquired through reinsurance agreement on October1,2009). See Note3 for more information.
See the accompanying notes to the consolidated financial statements.