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ASSURANT, INC.2011 Form10-KF-16
4 Investments
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 $
Our states, municipalities and political subdivisions holdings are
highly diversi ed across the United States and Puerto Rico, with no
individual state’s exposure (including both general obligation and
revenue securities) exceeding 0.5% of the overall investment portfolio
as of December31, 2011 and December31, 2010. At December31,
2011 and December31, 2010, the securities include general obligation
and revenue bonds issued by states, cities, counties, school districts
and similar issuers, including $164,347 and $154,742, respectively, of
advance refunded or escrowed-to-maturity bonds (collectively referred
to as “pre-refunded bonds”), which are bonds for which an irrevocable
trust has been established to fund the remaining payments of principal
and interest. As of December31, 2011 and December31, 2010,
revenue bonds account for 51% and 48% of the holdings, respectively.
Excluding pre-refunded bonds, sales tax, highway, transit, water and
miscellaneous (which includes bond banks,  nance authorities and
appropriations) provide for 79% and 80% of the revenue sources, as
of December31, 2011 and December31, 2010, respectively.
e Company’s investments in foreign government  xed maturity
securities are held mainly in countries and currencies where the Company
has policyholder liabilities, which allow the assets and liabilities to be
more appropriately matched. At December31, 2011, approximately
63%, 13%, and 7% of the foreign government securities were held in
the Canadian government/provincials and the governments of Brazil
and Germany, respectively. At December31, 2010, approximately 60%,
11%, 7%, and 6% of the foreign government securities were held in
the Canadian government/provincials, and the governments of Brazil,
Germany and the United Kingdom, respectively. No other country
represented more than 5% of our foreign government securities as of
December31, 2011 and December31, 2010.
e Company has European investment exposure in its corporate  xed
maturity and equity securities of $868,012 with an unrealized gain
of $61,387 at December31, 2011 and $891,095 with an unrealized
gain of $52,282 at December31, 2010. Approximately 31% and
39% of the corporate European exposure are held in the  nancial
industry at December31, 2011 and December31, 2010, respectively.
No European country represented more than 5% of the fair value of
our corporate securities as of December31, 2011 and December31,
2010. Approximately 5% of the fair value of the corporate European
securities are pound and euro-denominated and are not hedged to U.S.
dollars, but, held to support those foreign-denominated liabilities. Our
international investments are managed as part of our overall portfolio
with the same approach to risk management and focus on diversi cation.
e cost or amortized cost and fair value of  xed maturity securities at
December31, 2011 by contractual maturity are shown below. Expected
maturities may di er from contractual maturities because issuers of
the securities may have the right to call or prepay obligations with or
without call or prepayment penalties.
Cost or
Amortized Cost Fair Value
Due in one year or less $ 386,017 $ 391,093
Due after one year through  ve years 2,076,156 2,191,960
Due after  ve years through ten years 2,430,237 2,627,672
Due after ten years 4,276,666 4,964,198
Total 9,169,076 10,174,923
Asset-backed 30,681 32,433
Commercial mortgage-backed 82,184 88,024
Residential mortgage-backed 841,488 897,219
TOTAL $ 10,123,429 $ 11,192,599