Assurant 2014 Annual Report Download - page 67

53ASSURANT, INC. – 2014 Form 10-K
PART II
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
Year Ended December 31, 2014 Compared
to the Year Ended December 31, 2013
Net Income
Segment net income increased $14,128, or 41%, to $48,681
for Twelve Months 2014 from $34,553 for Twelve Months
2013. The increase was primarily attributable to favorable
loss experience in all major product lines.
Total Revenues
Total revenues increased $37,247, or 3%, to $1,193,121 for
Twelve Months 2014 from $1,155,874 for Twelve Months
2013. Net earned premiums growth was driven by voluntary
products which increased $47,510, or 12%, partially offset
by declines in employer paid products.
Total Benefi ts, Losses and Expenses
Total benefi ts, losses and expenses increased $12,625, or 1%,
to $1,116,440 for Twelve Months 2014 from $1,103,815 for
Twelve Months 2013. The loss ratio decreased to 68.2% from
70.5% driven by favorable experience in all major product
lines. The expense ratio remained relatively consistent at
37.1% for Twelve Months 2014 compared with 37.4% for
Twelve Months 2013.
Year Ended December 31, 2013 Compared
to the Year Ended December 31, 2012
Net Income
Segment net income decreased $23,506 or 40%, to $34,553
for Twelve Months 2013 from $58,059 for Twelve Months 2012.
The decrease was primarily attributable to less favorable
disability loss experience, including a previously disclosed
decrease in the reserve discount rate primarily for new
long-term disability claims. Additionally, Twelve Months
2013 results were also impacted by lower investment income
compared to Twelve Months 2012.
Total Revenues
Total revenues decreased $15,343 or 1%, to $1,155,874 for
Twelve Months 2013 from $1,171,217 for Twelve Months 2012.
Twelve Months 2013 net earned premiums increased slightly
as growth in our voluntary products was offset by declines in
employer-paid products. Net investment income decreased
8% or $10,632 driven by lower average invested assets, a
decrease in the average investment yield and lower real
estate joint venture income in Twelve Months 2013 compared
to Twelve Months 2012.
Total Benefi ts, Losses and Expenses
Total benefits, losses and expenses increased $20,706 or
2%, to $1,103,815 for Twelve Months 2013 from $1,083,109
for Twelve Months 2012. The loss ratio increased to 70.5%
from 68.3% primarily driven by unfavorable disability
and life loss experience. The expense ratio remained
flat at 37.4%.
Corporate and Other
The table below presents information regarding the Corporate and Other segment’s results of operations:
For the Years Ended December 31,
2014
2013 2012
Revenues:
Net investment income $ 19,320 $ 20,599 $ 20,327
Net realized gains on investments 60,783 34,525 64,353
Amortization of deferred gain on disposal of businesses (1,506) 16,310 18,413
Fees and other income 685 659 3,713
Total revenues 79,282 72,093 106,806
Benefi ts, losses and expenses:
Policyholder benefi ts — 4,888 (1,061)
Selling, underwriting and general expenses 143,078 138,450 111,423
Interest expense 58,395 77,735 60,306
Total benefi ts, losses and expenses 201,473 221,073 170,668
Segment loss before benefi t for income taxes (122,191) (148,980) (63,862)
Benefi t for income taxes (47,460) (48,739) (8,804)
SEGMENT NET LOSS $ (74,731) $ (100,241) $ (55,058)