Assurant 2012 Annual Report Download - page 109

ASSURANT, INC.2012 Form10-K F-33
11 VOBA and Other Intangible Assets
performing the two-step impairment test is unnecessary. However, if
an entity concludes otherwise, then it is required to perform the  rst
step of the two-step impairment test, described above.
In the fourth quarters of 2012, 2011 and 2010, we conducted our
annual assessments of goodwill.
 e Company performed a Step 1 test for the Assurant Solutions and
Specialty Property reporting units in 2012. Based on these tests, it was
determined that goodwill was not impaired at either reporting unit.
In 2011, for the Assurant Specialty Property reporting unit, the
Company chose the option to perform a qualitative assessment under
the amended intangibles- goodwill and other guidance. For the Assurant
Solutions reporting unit, the Company performed a Step 1 test. Based
on these analyses, it was determined that goodwill was not impaired
at either reporting unit.
Based on the results of the 2010 assessment, the Company concluded
that the net book values of the Assurant Employee Bene ts and
Assurant Health reporting units exceeded their estimated fair values
and therefore performed a Step 2 test. Based on the results of the Step
2 test, the Company recorded impairment charges of $102,078 and
$204,303 related to the Assurant Employee Bene ts and Assurant
Health reporting units, respectively, representing their entire goodwill
asset balances.  e 2010 impairments at Assurant Employee Bene ts
and Assurant Health re ects the e ects of the A ordable Care Act,
the low interest rate environment, continuing high unemployment,
the slow pace of the economic recovery and increased net book values,
primarily related to their investment portfolios.
11. VOBA and Other Intangible Assets
Information about VOBA is as follows:
For the Years Ended December31,
2012 2011 2010
Beginning balance $ 71,014 $ 82,208 $ 94,632
Amortization, net of interest accrued (8,961) (11,153) (12,526)
Foreign currency translation and other 56 (41) 102
ENDING BALANCE $ 62,109 $ 71,014 $ 82,208
As of December31, 2012, the entire outstanding balance of VOBA is from the Assurant Solutions segment with the majority related to the
preneed life insurance business. VOBA in the preneed life insurance business assumes an interest rate ranging from 5.4% to 7.5%.
At December31, 2012 the estimated amortization of VOBA for the next  ve years and thereafter is as follows:
Year Amount,
2013 $ 8,446
2014 7,995
2015 7,600
2016 7,228
2017 6,900
 ereafter 23,940
TOTAL $ 62,109
Information about other intangible assets is as follows:
As of December31,
2012 2011
Carrying Value Accumulated Amortization
Net Other
Intangible Assets Carrying Value Accumulated Amortization
Net Other
Intangible Assets
Contract based intangibles $ 68,083 $ (36,958) $ 31,125 $ 66,047 $ (34,409) $ 31,638
Customer related intangibles(1) 491,434 (272,783) 218,651 484,203 (231,473) 252,730
Marketing related intangibles 46,396 (33,430) 12,966 45,676 (26,536) 19,140
Technology based intangibles 360 (108) 252 360 (36) 324
TOTAL $ 606,273 $ 343,279 $ 262,994 $ 596,286 $ 292,454 $ 303,832
(1) Excluded from the 2012 customer related carrying value and accumulated amortization amounts is an impairment charge of $26,458. This impairment charge relates to the Assurant
Solutions segment and is primarily related to the 2007 acquisitions of two U.K. mortgage insurance brokers. In 2012, persistency rates of the acquired business declined significantly
following actions by an independent underwriter of the business, resulting in the impairment.