Assurant 2014 Annual Report Download - page 59

45ASSURANT, INC. – 2014 Form 10-K
PART II
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
December 15, 2016 and early adoption is not permitted.
Therefore, the Company is required to adopt the guidance on
January 1, 2017. An entity can choose to apply the amended
guidance using either the full retrospective approach or a
modifi ed retrospective approach. The Company is currently
evaluating the requirements of the revenue recognition
guidance as it relates to its non-insurance contract revenue
and the potential impact on the Company’s fi nancial position
and results of operations.
Results of Operations
Assurant Consolidated
Overview
The table below presents information regarding our consolidated results of operations:
For the Years Ended December 31,
2014 2013 2012
Revenues:
Net earned premiums $ 8,632,142 $ 7,759,796 $ 7,236,984
Net investment income 656,429 650,296 713,128
Net realized gains on investments 60,783 34,525 64,353
Amortization of deferred gains on disposal of businesses (1,506) 16,310 18,413
Fees and other income 1,033,805 586,730 475,392
Total revenues 10,381,653 9,047,657 8,508,270
Benefi ts, losses and expenses:
Policyholder benefi ts 4,405,333 3,675,532 3,655,404
Selling, underwriting and general expenses(1) 5,173,788 4,504,691 4,034,809
Interest expense 58,395 77,735 60,306
Total benefi ts, losses and expenses 9,637,516 8,257,958 7,750,519
Income before provision for income taxes 744,137 789,699 757,751
Provision for income taxes 273,230 300,792 274,046
NET INCOME $ 470,907 $ 488,907 $ 483,705
(1) Includes amortization of DAC and VOBA and underwriting, general and administrative expenses.
Year Ended December 31, 2014 Compared
to the Year Ended December 31, 2013
Net income decreased $18,000, or 4%, to $470,907 for Twelve
Months 2014 from $488,907 for Twelve Months 2013. The
decrease was primarily related to lower net income at
Assurant Specialty Property, a net loss at Assurant Health and
a $19,400 (after-tax) loss associated with a divested business.
Please see Note 4 to the Consolidated Financial Statements
for further information. These items were partially offset
by improved results in our Assurant Solutions and Assurant
Employee Benefi ts segments, lower expenses in the Corporate
and Other segment, an increase in net realized gains on
investments and a favorable change in tax liabilities, including
a $20,753 one-time tax benefi t related to the conversion of
the Canadian branch operations of certain U.S. subsidiaries
to foreign corporate entities. Please see Note 8 to the
Consolidated Financial Statements for further information.
Year Ended December 31, 2013 Compared
to the Year Ended December 31, 2012
Net income increased $5,202, or 1%, to $488,907 for Twelve
Months 2013 from $483,705 for Twelve Months 2012. The
increase was primarily related to a $143,457 (after-tax)
decrease in reportable catastrophe losses in our Assurant
Specialty Property segment. Partially offsetting this item
was lower net income in our Assurant Health and Assurant
Employee Benefi ts segments. In addition, the Corporate and
Other net loss increased as net realized gains on investments
decreased $19,388 (after-tax) and interest expense increased
$11,329 (after-tax) due to the March 2013 issuance of senior
notes with an aggregate principal amount of $700,000.