Assurant 2010 Annual Report Download - page 3

Download and view the complete annual report

Please find page 3 of the 2010 Assurant annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

ASSURANT-2010 Annual Report 1
To Our Shareholders:
In 2010, Assurant delivered
solid results. We again af rmed
the adaptability of our strategy
to ongoing economic challenges and
regulatory changes in the specialty
markets we serve.
Robert B. POLLOCK
President and Chief Executive Offi cer, Assurant
Assurant’s net earned premiums were $7.4 billion for the
year, and our operating return on average equity
1 was 12.1
percent. We increased net operating income
2 20 percent
to $560.1 million. Net income for the year decreased to
$279.2 million, due to the impairment of goodwill that
originated from acquisitions completed many years ago.
Our diluted book value per share, excluding AOCI3, was
up year-over-year by 6 percent. The Assurant investment
portfolio remains solid and we are optimistic about each of
our businesses as we enter 2011.
Throughout 2010, we continued to exercise discipline in
our deployment of capital. We returned more than $600
million to shareholders in repurchases and dividends.
Our share repurchases represented 13 percent of the
shares outstanding at year-end 2009. We also increased our
dividend for the seventh consecutive year. These actions
underscore the ability of the Assurant specialty platform
to generate free cash fl ow.
We ended the year with $880 million in corporate capital,
an increase of nearly 24 percent from the previous year.
Our capital deployment strategy provides financial
flexibility guided by three principles: safeguarding
the balance sheet against risk, finding opportunities
to grow through acquisition, and returning value to
our shareholders.
During 2010, we streamlined operations to improve
the customer experience while reducing costs. We also
developed new revenue opportunities through a broader
set of products and services that we can build on in 2011
and beyond.
2010 RESULTS FROM OPERATIONS
Assurant Solutions
Assurant Solutions focused on developing new client
relationships and distribution channels in 2010. Net
operating income for the year was $103.2 million and net
earned premiums were $2.48 billion. We were especially
pleased with the full-year improvement in our international
operating results. Domestic revenues were down due to the
impact of reduced levels of consumer spending. Our preneed