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ASSURANT-2011 Annual Report 1ASSURANT-2011 Annual Report
Assurant’s specialty strategy re ects
our long-term commitment to deliver
value for our shareholders. Serving our
customers well is core to our success.
During 2011, we broadened our product portfolio and
improved our operations to better meet the needs of our
customers. Several broad social and economic trends are
complementary to our strategy and offer opportunities
to further profi table growth. Our actions in these areas
of emphasis in 2011 included:
z Expanding wireless offerings as the importance of
mobile devices to consumers grows;
z Increasing our rental insurance capabilities and
offerings;
z Introducing new products to make health insurance
more accessible and affordable for consumers; and
z Growing our array of voluntary, employee-funded
benefi t products.
We will build on our progress in 2012.
Assurant’s net earned premiums, fees and other income
were $7.5 billion for the year, down from $7.8 billion
in 2010. Net operating income(1) and operating return
on average equity
, excluding AOCI(2), declined primarily
due to signifi cant increases in storm activity compared
with 2010. Our book value per diluted share, excluding
AOCI(3), was up year-over-year by 14 percent.
We ended 2011 with approximately $760 million in
corporate capital, including a $250 million buffer against
unexpected risks. Our strong capital position, excellence
in risk management and ability to generate free cash
fl ow added to our already strong fi nancial foundation. We
deployed our capital in a disciplined fashion, returning
more than $600 million to shareholders through share
repurchases and dividends while also investing in new
opportunities that we expect to drive profi table growth,
most notably the acquisition in 2011 of new capabilities
in Assurant Specialty Property.
Our investment portfolio performed well in 2011 despite
the challenging global economy. While portfolio yields
continue to decline due to low new money rates, our
stable liability structure and conservative investment
approach should allow us to maintain yield from current
investments for as long as possible.
2011 RESULTS FROM OPERATIONS
Assurant Solutions
Earnings at Assurant Solutions improved year-over-year
by 7 percent, excluding unusual items. This growth
refl ects improved underwriting results, both domestically
and internationally, as well as a drop in the effective
tax rate. In 2011, we renewed a number of domestic
service contracts, expanded our international presence,
particularly in Latin America, and increased pre need
insurance sales.
A Message to our Shareholders
Robert B. Pollock
President and Chief Executive Offi cer, Assurant