Assurant 2014 Annual Report Download - page 106

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ASSURANT, INC. – 2014 Form 10-KF-18
5 Investments
is tax-deductible. The primary factor contributing to the
recognition of goodwill is the future expected growth of
this business within Assurant Solutions.
On September 30, 2013, the Company acquired Field Asset
Services from FirstService Corporation for $54,636 in cash.
In connection with the acquisition, the Company recorded
$21,020 of marketing and technology based intangible assets,
all of which are amortizable over 5 to 9 year periods, and
$28,908 of goodwill, all of which is tax-deductible. The
primary factor contributing to the recognition of goodwill is
the future expected growth of this business. This acquisition
expands existing collateral protection service offerings for
customers of Assurant Specialty Property.
4. Dispositions
On January 1, 2015, the Company sold its general agency
business and primary associated insurance carrier, American
Reliable Insurance Company (“ARIC”) to Global Indemnity
Group, Inc., a subsidiary of Global Indemnity plc, for
approximately $114,000 in cash. The business was part of
the Assurant Specialty Property segment and offers specialty
personal lines and agricultural insurance through general and
independent agents. The disposition allows Assurant Specialty
Property to better align its portfolio of businesses, increase
resources allocated toward these markets and strengthen
their core business. The sale price was based on GAAP book
value of the business from June 30, 2014 with adjustments
until January 1, 2015.
As of December 31, 2014, the divested business had assets,
excluding goodwill, of $441,942 (primarily consisting of
$199,097 fi xed maturity securities, $48,695 cash and cash
equivalents, $26,186 premiums and accounts receivable,
$105,603 reinsurance recoverables and $25,055 deferred
acquisition costs) and liabilities of $321,820 (primarily
consisting of $172,235 unearned premiums, $72,645 claims and
benefi ts payable and $54,949 funds held under reinsurance).
These assets and liabilities are classifi ed as held for sale and
are included in other assets and accounts payable and other
liabilities in the Company’s Consolidated Balance Sheets,
respectively. The loss associated with the divested business of
$21,526 includes a $15,451 goodwill write-off and is classifi ed
in underwriting, general and administrative expenses on the
Consolidated Statements of Operations.
5. Investments
The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary
impairment (“OTTI”) of our fi xed maturity and equity securities as of the dates indicated:
December 31, 2014
Cost or Amortized
Cost
Gross Unrealized
Gains
Gross Unrealized
Losses Fair Value
OTTI
in AOCI(a)
Fixed maturity securities:
United States Government and government
agencies and authorities $ 172,070 $ 5,201 $ (429) $ 176,842 $ —
States, municipalities and political
subdivisions 703,167 67,027 (353) 769,841 —
Foreign governments 591,981 74,339 (1,457) 664,863 —
Asset-backed 3,917 1,680 (78) 5,519 1,570
Commercial mortgage-backed 44,907 1,109 — 46,016 —
Residential mortgage-backed 911,004 58,876 (1,154) 968,726 17,732
Corporate 7,621,054 1,026,927 (16,614) 8,631,367 21,612
TOTAL FIXED MATURITY SECURITIES $ 10,048,100 $ 1,235,159 $ (20,085) $ 11,263,174 $ 40,914
Equity securities:
Common stocks $ 22,300 $ 15,651 $ (1) $ 37,950 $ —
Non-redeemable preferred stocks 412,575 50,975 (2,093) 461,457 —
TOTAL EQUITY SECURITIES $ 434,875 $ 66,626 $ (2,094) $ 499,407 $ —