Assurant 2014 Annual Report Download - page 146

ASSURANT, INC. – 2014 Form 10-KF-58
22 Segment Information
For all the fi nancial assets included in the above hierarchy,
the market valuation technique is used. For the year ended
December 31, 2014, the application of the valuation technique
applied to similar assets has been consistent.
Level 1 and Level 2 securities are valued using various
observable market inputs obtained from a pricing service. The
pricing service prepares estimates of fair value measurements
for our Level 2 securities using proprietary valuation models
based on techniques such as matrix pricing which include
observable market inputs. Observable market inputs for Level 1
and 2 securities are consistent with the observable market
inputs described in Note 6 – Fair Value Disclosures. The MIFSF
utilizes all three levels of inputs to price its holdings. Since
unobservable inputs may have been signifi cant to the fair
value measurement, it was classifi ed as Level 3.
The Company obtains one price for each investment. A
quarterly analysis is performed to assess if the evaluated
prices represent a reasonable estimate of their fair value.
This process involves quantitative and qualitative analysis
and is overseen by benefi ts, investment and accounting
professionals. Examples of procedures performed include, but
are not limited to, initial and on-going review of pricing service
methodologies, review of pricing statistics and trends, and
comparison of prices for certain securities with two different
appropriate price sources for reasonableness. Following this
analysis, the Company uses the best estimate of fair value
based upon all available inputs. The pricing service provides
information regarding their pricing procedures so that the
Company can properly categorize the Plans’ fi nancial assets
in the fair value hierarchy.
The Company expects to contribute up to $43,000 to its
qualifi ed pension plan in 2015. No contributions are expected
to be made to the retirement health benefi t plan in 2015.
The following pension benefi ts, which refl ect expected future service, as appropriate, are expected to be paid:
Pension Benefi ts
Retirement Health
Benefi ts
2015 $ 65,789 $ 3,144
2016 54,344 3,495
2017 55,027 3,885
2018 57,878 4,291
2019 60,573 4,717
2020-2024 376,771 30,201
TOTAL
$ 670,382 $ 49,733
Defi ned Contribution Plan
The Company and its subsidiaries participate in a defi ned contribution plan covering substantially all employees. The defi ned
contribution plan provides benefi ts payable to participants on retirement or disability and to benefi ciaries of participants
in the event of the participant’s death. The amounts expensed by the Company related to this plan were $44,796, $39,263
and $37,237 in 2014, 2013, and 2012, respectively.
22. Segment Information
The Company has fi ve reportable segments, which are
defi ned based on the nature of the products and services
offered: Assurant Solutions, Assurant Specialty Property,
Assurant Health, Assurant Employee Benefi ts, and Corporate &
Other. Assurant Solutions provides mobile device protection,
debt protection administration, credit-related insurance,
warranties and service contracts and pre-funded funeral
insurance. Assurant Specialty Property provides lender-placed
homeowners insurance, renters insurance and related products
and manufactured housing homeowners insurance. Assurant
Health provides individual health and small employer group
health insurance. Assurant Employee Benefi ts primarily
provides group dental insurance, group disability insurance
and group life insurance. Corporate & Other includes activities
of the holding company, fi nancing and interest expenses, net
realized gains (losses) on investments and interest income
earned from short-term investments held. Corporate & Other
also includes the amortization of deferred gains associated
with the sales of Fortis Financial Group and Long-Term Care
through reinsurance agreements. Beginning January 1, 2015,
segment assets for Assurant Solutions and Assurant Specialty
Property will include their proportionate share of goodwill.
The Company evaluates performance of the operating segments
based on segment income (loss) after-tax excluding realized
gains (losses) on investments. The Company determines
reportable segments in a manner consistent with the way the
Chief Operating Decision Maker makes operating decisions
and assesses performance. The accounting policies of the
reportable segments are the same as those described in the
summary of signifi cant accounting policies. See Note 2 for
further information.