Assurant 2014 Annual Report Download - page 23

ASSURANT, INC. – 2014 Form 10-K 9
PART I
ITEM 1 Business
Assurant Employee Benefi ts
For the Years Ended
December 31, 2014
December 31, 2013
Net Earned Premiums:
Group disability $ 409,028 $ 403,286
Group dental 392,502 383,223
Group life 200,285 192,392
Group supplemental and vision products 49,910 35,686
TOTAL $ 1,051,725 $ 1,014,587
Voluntary $ 441,479 $ 393,969
Employer-paid and other 610,246 620,618
TOTAL $ 1,051,725 $ 1,014,587
Fees and other income $ 24,204 $ 23,434
Segment net income $ 48,681 $ 34,553
Loss ratio(1) 68.2% 70.5%
Expense ratio(2) 37.1% 37.4%
Equity(3) $ 540,964 $ 545,049
(1) The loss ratio is equal to policyholder benefits divided by net earned premiums.
(2) The expense ratio is equal to selling, underwriting and general expenses divided by net earned premiums and fees and other income.
(3) Equity excludes accumulated other comprehensive income.
Products and Services
Assurant Employee Benefi ts offers group disability, dental,
life, vision and supplemental products as well as individual
dental products. The group products are offered with funding
options ranging from fully employer-paid to fully employee-
paid (voluntary). In addition, we reinsure disability and life
products through our wholly owned subsidiary, Disability
Reinsurance Management Services, Inc. (“DRMS”).
We focus on the needs of the small to mid-size employer.
We believe that our group risk selection expertise, ease of
enrollment and administration, our broad product suite,
expansive dental network and strong relationships with brokers
who work primarily with small to mid-size businesses give us
a competitive advantage versus other carriers in this market.
Group Disability
Group disability insurance provides partial replacement of
lost earnings for insured employees who become disabled, as
defi ned by their plan provisions. Our products include both
short- and long-term disability coverage options. We also
reinsure disability policies written by other carriers through
our DRMS subsidiary.
Group Dental
Dental benefi t plans provide funding for necessary or elective
dental care. Customers may select a traditional indemnity
arrangement, a Preferred Provider Organization (“PPO”)
arrangement, or a prepaid or managed care arrangement.
Coverage is subject to deductibles, coinsurance and annual
or lifetime maximums. In a prepaid plan, members must use
participating dentists in order to receive benefi ts.
Success in the group dental business is heavily dependent
on a strong provider network. Assurant Employee Benefi ts
owns and operates Dental Health Alliance, L.L.C. (“DHA”),
a leading dental PPO network. The Company has a larger
network with DHA, marketed as Assurant Dental Network,
which combines network agreements with partners such as
Aetna and United Concordia Dental. We believe that our large
combined network, Assurant Dental Network, increases the
attractiveness of our products in the marketplace and the
strength of the Assurant Employee Benefi ts dental offering.
Group Life
Group term life insurance provided through the workplace
provides benefi ts in the event of death. We also provide
accidental death and dismemberment insurance. Insurance
consists primarily of renewable term life insurance with the
amount of coverage provided being either a fl at amount, a
multiple of the employee’s earnings, or a combination of the
two. We also reinsure life policies written by other carriers
through DRMS.
Group Supplemental and Vision Products
Fully-insured vision coverage is offered through our agreement
with Vision Service Plan, Inc., a leading national supplier of
vision insurance. Our plans cover eye exams, glasses, and
contact lenses and are usually sold in combination with one
or more of our other products. In addition to the traditional
voluntary products, we provide group critical illness, cancer,
accident, and gap insurance. These products are generally
paid for by the employee through payroll deductions, and
the employee is enrolled in the coverage(s) at the worksite.