Assurant 2014 Annual Report Download - page 47

33ASSURANT, INC. – 2014 Form 10-K
PART II
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
As of and for the years ended December 31,
2014 2013 2012 2011
2010
Earnings per share:
Basic
NET INCOME $ 6.52 $ 6.38 $ 5.74 $ 5.58 $ 2.52
Diluted
NET INCOME $ 6.44 $ 6.30 $ 5.67 $ 5.51 $ 2.50
DIVIDENDS PER SHARE $ 1.06 $ 0.96 $ 0.81 $ 0.70 $ 0.63
Share data:
Weighted average shares outstanding used in basic
per share calculations 72,181,447 76,648,688 84,276,427 96,626,306 110,632,551
Plus: Dilutive securities 970,563 1,006,076 1,030,638 1,169,003 840,663
WEIGHTED AVERAGE SHARES USED IN
DILUTED PER SHARE CALCULATIONS 73,152,010 77,654,764 85,307,065 97,795,309 111,473,214
Selected Consolidated Balance Sheet Data:
Cash and cash equivalents and investments $ 15,450,108 $ 15,961,199 $ 15,885,722 $ 15,192,878 $ 14,670,364
Total assets $ 31,562,466 $ 29,714,689 $ 28,946,607 $ 27,019,862 $ 26,345,501
Policy liabilities(5) $ 19,711,953 $ 18,698,615 $ 18,666,355 $ 17,278,342 $ 16,616,206
Debt $ 1,171,079 $ 1,638,118 $ 972,399 $ 972,278 $ $972,164
Mandatorily redeemable preferred stock $ — $ — $ — $ — $ 5,000
Total stockholders’ equity $ 5,181,307 $ 4,833,479 $ 5,185,366 $ 4,873,950 $ 4,633,136
Per share data:
Total book value per basic share(6) $ 73.73 $ 66.23 $ 64.93 $ 54.31 $ 44.88
(1) Included in net realized gains are other-than-temporary impairments of $30, $4,387, $1,843, $7,836 and $11,167 for 2014, 2013, 2012, 2011, and
2010, respectively.
(2) During 2012, we incurred losses of $250,206, net of reinsurance, mainly associated with Superstorm Sandy. During 2011, we incurred losses
of $157,645 associated with Hurricane Irene, Tropical Storm Lee, wildfires in Texas and severe storms, including tornadoes in the southeast.
Reportable catastrophe losses include only individual catastrophic events that generated losses to the Company in excess of $5,000, pre-tax and
net of reinsurance.
(3) Following the completion of our annual goodwill impairment analysis, we recorded an impairment charge of $306,381 related to Assurant Employee
Benefits and Assurant Health during the fourth quarter of 2010. The impairment charges resulted in a decrease to net income but did not have
any related tax benefit.
(4) During 2011, we had an $80,000 release of a capital loss valuation allowance related to deferred tax assets.
(5) Policy liabilities include future policy benefits and expenses, unearned premiums and claims and benefits payable.
(6) Total stockholders’ equity divided by the basic shares outstanding for book value per basic share calculation. At December 31, 2014, 2013, 2012,
2011, and 2010 there were 70,276,896, 72,982,023, 79,866,858, 89,743,761 and 103,227,238 shares, respectively, outstanding.
ITEM 7 Management’s Discussion and Analysis
of Financial Condition and Results
of Operations
The following discussion and analysis of our fi nancial condition and results of operations should be read in conjunction with
our consolidated fi nancial statements and accompanying notes which appear elsewhere in this report. It contains forward-
looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in
these forward-looking statements as a result of various factors, including those discussed below and elsewhere in this report,
particularly under the headings “Item 1A — Risk Factors” and “Forward-Looking Statements.”