Assurant 2009 Annual Report Download - page 25

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23
3.Assurantusesthenon-GAAPnancialmeasuresonpagestwoandthreeofthereporttoanalyze
the Company’s operating performance for the periods presented in this report. Because Assurant’s
calculation of these measures may differ from similar measures used by other companies,
investorsshouldbecarefulwhencomparingAssurant’snon-GAAPnancialmeasurestothoseof
other companies.
Assurant uses net operating income as an important measure of the Company’s operating
performance. As shown in the chart below, net operating income equals net income excluding net
realized gains (losses) on investments and other unusual and/or infrequent items. The Company
believes net operating income provides investors a valuable measure of the performance of the
Company’s ongoing business, because it excludes both the effect of net realized gains (losses)
on investments that tend to be highly variable from period to period, and those events that are
unusual and/or unlikely to recur.
RECONCILIATION OF NET OPERATING INCOME TO NET INCOME (UNAUDITED)
For the Years Ended December 31, 2009 2008
($ in millions, net of tax)
Assurant Solutions $ 120.1 $ 112.2
Assurant Specialty Property 406.0 405.2
Assurant Health (30.2) 120.3
AssurantEmployeeBenets  42.2 70.6
Corporate and other (48.3) (50.4)
Amortization of deferred gains on disposal of businesses 14.6 19.1
Interest expense (39.5) (39.6)
Net operating income 464.9 637.4
Adjustments:
Net realized losses on investments (34.8) (278.6)
 Taxbenetrealizedfromthesaleofaninactivesubsidiary — 89.0
Change in tax valuation allowance — —
Legal settlement and related expenses 83.5 —
Goodwill impairment (83.0) —
Net income $ 430.6 $ 447.8