Assurant 2010 Annual Report Download - page 4

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ASSURANT-2010 Annual Report2
insurance business continued to deliver strong results with
double-digit increases in new sales and an improvement
in operating results.
We added clients with products that support wireless and
handheld devices. This reaffi rms our belief that growth
in the wireless market will continue to outpace the
general economy. We continued to diversify our U.S.
client base by growing the original equipment manufacturer
(OEM) channel. Internationally, growth is strong in Latin
America, and more challenging in Europe. Looking ahead,
the priorities for Assurant Solutions are to invest in new
business opportunities while closely managing expenses.
Assurant Specialty Property
The loan-tracking technology and risk-management
expertise of Assurant Specialty Property combine to
deliver superior service to our clients and strong results
for our shareholders. Net operating income for the year
was $424.3 million and net earned premiums were $1.95
billion. Catastrophic activity was minimal again in 2010,
improving full-year results. Assurant Specialty Property
implemented process improvements to control expenses
while adding new clients for lender-placed homeowners’
coverage.
We continue to believe that revenue growth will
be challenged over time as the overall mortgage loan
inventory declines and placement rates return to more
historical levels. Our alignment with leading mortgage
servicers, along with sales growth of other products such
as renters and fl ood insurance, will temper these trends.
Assurant Health
In 2010, Assurant Health delivered solid results while
transforming to operate in an environment of new
regulations and changing market dynamics. Net operating
income for the year was $54.0 million and net earned
premiums were $1.86 billion. Plan design changes,
substantial cost reductions and pricing actions improved
Assurant Health’s year-over-year fi nancial performance.
Looking ahead, we will continue to adapt our strategy
as we more fully understand how consumers, providers
and distributors adjust to the new healthcare landscape.
2011 will be a transition year at Assurant Health and we
remain optimistic about our future as we adapt to the
changing needs of our customers.
Assurant Employee Benefi ts
Improved results for Assurant Employee Benefi ts in 2010
were driven by favorable claims experience and strong
expense management throughout the year. Net operating
income for the year was $63.5 million and net earned
premiums were $1.10 billion.
Revenue growth will continue to challenge the Assurant
Employee Benefi ts team until U.S. employment levels
improve and small business payrolls expand. In the
meantime, niche offerings such as worksite and voluntary
products and our reinsurance capabilities will enhance
our long-term competitive position while benefi ting small
businesses and their employees.
PRIORITIES FOR 2011
For 2011, our priorities are clear:
focus on growth by creating new revenue streams,
fi nd additional operating effi ciencies,
develop enhanced capabilities valued by our customers,
leverage our risk-management expertise in all we do,
and
continue to effectively manage our capital to create
value for our shareholders.
I am confident we will be successful because of our
employees. They are a very committed group, united by
our shared values of common sense, common decency,
uncommon thinking and uncommon results. Their expertise
and excellence combine to generate superior service for
our customers and long-term value for our shareholders.
Sincerely,
ROBERT B. POLLOCK
President and Chief Executive Offi cer