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ASSURANT, INC.2011 Form10-KF-24
5 Fair Value Disclosures
e following tables summarize the change in balance sheet carrying value associated with Level 3  nancial assets and liabilities carried at fair
value during the years ended December31, 2011 and 2010:
Year Ended December, 31, 2011
Balance,
beginning of
period
Total gains
(losses) (realized/
unrealized)
included in
earnings
Net unrealized
gains (losses)
included in
stockholders’
equity Purchases Sales
Net
transfers(1)
Balance,
endof period
Fixed Maturity Securities
United States Government
and government agencies
andauthorities $ 14,506 $ (249) $ (55) $ 3,980 $ (2,099) $ (11,683) $ 4,400
Foreign governments 25,621 (4) 1,216 — — (4,120) 22,713
Asset-backed — — (25) — (28) 506 453
Commercial mortgage-backed 4,542 — 10 — (146) (3,502) 904
Residential mortgage-backed — 4 34 1,886 (57) — 1,867
Corporate 125,685 (3,165) 4,161 29,704 (26,856) 8,100 137,629
Equity Securities
Non-redeemable preferred stocks 558 (28) 58 — (574) (1) 13
Other investments 8,309 6,399 (63) 12,171 (12,398) 3,839 18,257
Other assets 9,825 (1,304) — — — — 8,521
Other liabilities — (45) — (2,675) — — (2,720)
TOTAL LEVEL 3 ASSETS
ANDLIABILITIES $ 189,046 $ 1,608 $ 5,336 $ 45,066 $ 42,158 $ 6,861 $ 192,037
Year Ended December, 31, 2010
Balance,
beginning of
period
Total (losses)
gains (realized/
unrealized)
included in
earnings
Net unrealized
gains (losses)
included in
stockholders’
equity Purchases Sales
Net
transfers(1)
Balance, end
of period
Fixed Maturity Securities
United States Government
and government agencies
andauthorities $ — $ (605) $ 57 $ 32,333 $ (5,208) $ (12,071) $ 14,506
Foreign governments 3,088 2 642 — — 21,889 25,621
Asset-backed 9 (8) 5 588 — (594) —
Commercial mortgage-backed 32,288 56 476 — (22,367) (5,911) 4,542
Corporate 136,726 (1,206) 11,253 6,239 (34,981) 7,654 125,685
Equity Securities
Non-redeemable preferred stocks 5,735 2,639 (3,349) 8,116 (5,722) (6,861) 558
Other investments 4,275 (358) (105) 5,628 (1,290) 159 8,309
Other assets 14,010 (3,032) — — (1,153) — 9,825
TOTAL LEVEL 3 ASSETS $ 196,131 $ 2,512 $ 8,979 $ 52,904 $ 70,721 $ 4,265 $ 189,046
(1) Net transfers are primarily attribuable to changes in the availability of observable market information and re-evaluation of the observability of pricing imputs.
ree di erent valuation techniques can be used in determining fair
value for  nancial assets and liabilities: the market, income or cost
approaches.  e three valuation techniques described in the fair value
measurements and disclosures guidance are consistent with generally
accepted valuation methodologies.  e market approach valuation
techniques use prices and other relevant information generated by
market transactions involving identical or comparable assets or liabilities.
When possible, quoted prices (unadjusted) in active markets are used
as of the period-end date (such as for mutual funds and money market
funds). Otherwise, valuation techniques consistent with the market
approach including matrix pricing and comparables are used. Matrix
pricing is a mathematical technique employed principally to value
debt securities without relying exclusively on quoted prices for those
securities but rather by relying on the securities’ relationship to other
benchmark quoted securities. Market approach valuation techniques
often use market multiples derived from a set of comparables. Multiples
might lie in ranges with a di erent multiple for each comparable.
e selection of where within the range the appropriate multiple falls
requires judgment, considering both qualitative and quantitative factors
speci c to the measurement.
Income approach valuation techniques convert future amounts, such
as cash  ows or earnings, to a single present amount, or a discounted
amount.  ese techniques rely on current market expectations of future
amounts as of the period-end date. Examples of income approach
valuation techniques include present value techniques, option-pricing