Assurant 2007 Annual Report Download - page 19

Assurant Annual Report 15
dear shareholders: A test of strength.
In many ways, 2007 was exactly that for
Assurant—a test of our core and enduring
strengths: our business model, our long-
term growth strategies and the talent,
depth and breadth of our Assurant team.
Our people responded—and it showed in
the results they generated. Despite a
slowing economy, we were able to deliver
15% growth in net operating income and
an increase of 8% in net earned premiums,
while maintaining top-quartile ROEs. This
performance demonstrates the durability
of our diversied specialty insurance
strategy. It reafrms our approach of
pursuing targeted growth areas for
Assurant products. And it underscores the
exceptional skill sets of extraordinary
people throughout our organization who
execute these strategies every day
with excellence.
2007: Sustained Focus. Continued Performance.
In a year that saw numerous twists and turns—like a
river winding its way through changing terrain—one thing
remained constant: Assurant’s unwavering commitment
and continued execution of our diversied specialty
insurance strategy. We remain focused on pursuing
targeted opportunities that will deliver protable growth
and increase shareholder value over the long term. While
we believe our ongoing disciplined approach is a key
reason Assurant is well positioned to achieve future
growth, it also has delivered results for our shareholders
in the near term. Amid initial signs of a slowdown in the
economy, net operating income was up 15% over the past
year, rising from $602.7 million ($4.68 per diluted share)
to $694.2 million ($5.72 per diluted share). At the same
time, net earned premiums climbed 8% year over year,
to $7.41 billion from $6.84 billion in 2006. Assurant also
earned its highest-ever operating return on equity as a
public company, 17.8%, which again places us in the top
quartile of ROE performance in the industry. Our book
value per share also rose to an all-time high of $33.73
in 2007 from $29.97 in 2006—a 13% increase. By almost
any measure, Assurant enjoyed solid nancial performance
in 2007.
Of course, many hands are responsible for producing
these results. In particular, I would like to take a moment
to acknowledge the remarkable contributions of Kerry
Clayton, who served as interim CEO during the latter part
of 2007. Because of his extraordinary leadership and the
strength of the cohesive, tenured management team he
helped assemble, we never missed a beat. The benets of
building our depth of management talent and cultivating
the potential of our people have never been more timely
or apparent. On behalf of our employees, customers and
shareholders, I thank Kerry for his generous and tireless
service to Assurant. We all wish him the best for a happy
and healthy retirement. I also would be remiss if I didn’t
mention the thousands of other Assurant employees that
Letter to Shareholders