Assurant 2014 Annual Report Download - page 126

ASSURANT, INC. – 2014 Form 10-KF-38
13 Reserves
The following table provides a roll forward of the Company’s product lines with the most signifi cant claims and benefi ts
payable balances: group term life, group disability, medical and property and warranty lines of business. Claims and benefi ts
payable is comprised of case and IBNR reserves.
Group Term
Life
Group
Disability
Short Duration
Medical(2)
Long Duration
Medical(2)
Property and
Warranty
Balance as of December 31, 2011,
gross of reinsurance(3) $ 219,770 $ 1,377,416 $ 268,934 $ 18,555 $ 570,692
Less: Reinsurance ceded and other (1) (3,542) (37,370) (17,904) (2,964) (189,977)
Balance as of January 1, 2012, net of reinsurance 216,228 1,340,046 251,030 15,591 380,715
Incurred losses related to:
Current year 126,712 287,459 1,130,525 99,887 1,142,285
Prior year’s interest 7,993 58,502 — — —
Prior year (s) (27,918) (58,562) (52,515) (3,831) (46,006)
Total incurred losses 106,787 287,399 1,078,010 96,056 1,096,279
Paid losses related to:
Current year 79,071 68,269 903,984 84,071 797,492
Prior year (s) 43,004 288,255 193,745 11,465 227,502
Total paid losses 122,075 356,524 1,097,729 95,536 1,024,994
Balance as of December 31, 2012,
net of reinsurance(3) 200,940 1,270,921 231,311 16,111 452,000
Plus: Reinsurance ceded and other(1) 2,817 38,166 16,447 736 715,058
Balance as of December 31, 2012,
gross of reinsurance(3) $ 203,757 $ 1,309,087 $ 247,758 $ 16,847 $ 1,167,058
Less: Reinsurance ceded and other(1) (2,817) (38,166) (16,447) (736) (715,058)
Balance as of January 1, 2013, net of reinsurance 200,940 1,270,921 231,311 16,111 452,000
Incurred losses related to:
Current year 121,708 284,005 1,097,313 110,933 1,140,500
Prior year’s interest 7,773 56,705 — — —
Prior year(s) (14,300) (29,975) (42,063) (3,971) (23,801)
Total incurred losses 115,181 310,735 1,055,250 106,962 1,116,699
Paid losses related to:
Current year 75,119 70,236 894,533 98,183 802,130
Prior year (s) 43,694 278,559 184,824 11,869 310,660
Total paid losses 118,813 348,795 1,079,357 110,052 1,112,790
Balance as of December 31, 2013,
net of reinsurance(3) 197,308 1,232,861 207,204 13,021 455,909
Plus: Reinsurance ceded and other(1) 2,463 38,990 14,978 618 183,315
Balance as of December 31, 2013,
gross of reinsurance(3) $ 199,771 $ 1,271,851 $ 222,182 $ 13,639 $ 639,224
Less: Reinsurance ceded and other(1) (4) (2,463) (38,990) (14,978) (618) (229,038)
Balance as of January 1, 2014, net of reinsurance 197,308 1,232,861 207,204 13,021 410,186
Incurred losses related to:
Current year 124,228 285,095 1,782,891 128,093 1,401,187
Prior year’s interest 7,548 53,657 — — —
Prior year (s) (16,560) (36,003) (51,352) (4,044) (2,848)
Total incurred losses 115,216 302,749 1,731,539 124,049 1,398,339
Paid losses related to:
Current year 77,113 80,172 1,424,448 118,842 988,075
Prior year (s) 41,028 262,023 151,298 8,829 323,795
Total paid losses 118,141 342,195 1,575,746 127,671 1,311,870
Balance as of December 31, 2014, net of
reinsurance(3) 194,383 1,193,415 362,997 9,399 496,655
Plus: Reinsurance ceded and other(1) 3,409 41,614 15,203 446 180,841
BALANCE AS OF DECEMBER 31, 2014, GROSS
OF REINSURANCE(3) $ 197,792 $ 1,235,029 $ 378,200 $ 9,845 $ 677,496
(1) Reinsurance ceded and other includes claims and benefits payable balances that have either been (a) reinsured to third parties, (b) established for
claims related expenses whose subsequent payment is not recorded as a paid claim, or (c) reserves established for obligations that would persist
even if contracts were cancelled (such as extension of benefits), which cannot be analyzed appropriately under a roll-forward approach.
(2) Short duration and long duration medical methodologies used for settling claims and benefits payable are similar.
(3) The Company’s net retained credit life and disability claims and benefits payable were $45,096, $54,483 and $64,031 at December 31, 2014, 2013
and 2012.
(4) Includes the reclassification of assets held for sale as described in Note 4.