Assurant 2014 Annual Report Download - page 124

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ASSURANT, INC. – 2014 Form 10-KF-36
12 VOBA and Other Intangible Assets
The Company performed a Step 1 test for the Assurant
Solutions reporting unit in 2014, 2013 and 2012 and for the
Assurant Specialty Property reporting unit in 2014 and 2012.
In 2013 for the Assurant Specialty Property reporting unit,
the Company chose the option to perform a qualitative
assessment under the amended intangibles—goodwill and
other guidance. Based on these tests, it was determined that
goodwill was not impaired at either reporting unit.
12. VOBA and Other Intangible Assets
Information about VOBA is as follows:
For the Years Ended December 31,
2014 2013 2012
Beginning balance $ 53,549 $ 62,109 $ 71,014
Amortization, net of interest accrued (7,978) (8,442) (8,961)
Foreign currency translation and other (109) (118) 56
ENDING BALANCE $ 45,462 $ 53,549 $ 62,109
As of December 31, 2014, the entire outstanding balance of VOBA is from the Assurant Solutions segment with the majority
related to the preneed life insurance business. VOBA in the preneed life insurance business assumes an interest rate ranging
from 5.4% to 7.5%.
At December 31, 2014 the estimated amortization of VOBA for the next fi ve years and thereafter is as follows:
Year Amount
2015 $ 7,579
2016 7,209
2017 6,883
2018 6,636
2019 6,446
Thereafter 10,709
TOTAL $ 45,462
Information about other intangible assets is as follows:
As of December 31,
2014 2013
Carrying Value
Accumulated
Amortization
Net Other
Intangible
Assets Carrying Value
Accumulated
Amortization
Net Other
Intangible
Assets
Contract based intangibles $ 63,538 $ (36,221) $ 27,317 $ 61,179 $ (33,113) $ 28,066
Customer related
intangibles 520,894 (212,326) 308,568 469,788 (170,690) 299,098
Marketing related
intangibles 41,861 (15,686) 26,175 36,652 (22,090) 14,562
Technology based
intangibles 25,235 (5,335) 19,900 13,760 (850) 12,910
TOTAL(1) $ 651,528 $ (269,568) $ 381,960 $ 581,379 $ (226,743) $ 354,636
(1) In 2013, the Company removed $137,071 of fully amortized intangible assets that were determined to have no future value.
Other intangible assets amortization for 2014, 2013 and 2012 amounted to $63,924, $44,671 and $52,283, respectively.