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ASSURANT, INC.2012 Form10-KF-38
13 Reinsurance
A key credit quality indicator for reinsurance is the A.M. Best  nancial strength ratings of the reinsurer.  e A.M. Best ratings are an independent
opinion of a reinsurer’s ability to meet ongoing obligations to policyholders.  e A.M. Best ratings for new reinsurance agreements where there
is material credit exposure are reviewed at the time of execution.  e A.M. Best ratings for existing reinsurance agreements are reviewed on a
periodic basis, at least annually.  e following table provides the reinsurance recoverable as of December31, 2012 grouped by A.M. Best rating:
Best Ratings of Reinsurer Ceded future policyholder
bene ts and expense Ceded unearned
premiums Ceded claims and
bene ts payable Ceded paid
losses Total
A++ or A+ $ 1,805,928 $ 37,707 $ 683,464 $ 1,665 $ 2,528,764
A or A- 1,492,170 50,655 131,731 12,543 1,687,099
B++ or B+ 38,927 21,012 3,835 2 63,776
Not Rated 1,758 1,104,654 721,043 45,276 1,872,731
Total 3,338,783 1,214,028 1,540,073 59,486 6,152,370
Less: Allowance 0 0 0 (10,633) (10,633)
NET REINSURANCE
RECOVERABLE $ 3,338,783 $ 1,214,028 $ 1,540,073 $ 48,853 $ 6,141,737
A.M. Best ratings for  e Hartford and John Hancock, the reinsurers with
the largest reinsurance recoverable balances, are A and A+, respectively.
A.M. Best currently maintains a stable outlook on the  nancial strength
rating of John Hancock.  e Hartford’s rating is under review with
negative implications.  e total amount of recoverable for these two
reinsurers is $3,619,747 as of December31, 2012. Most of the assets
backing reserves relating to reinsurance recoverables from these two
counterparties are held in trust.
A substantial portion of the Not Rated category is related to Assurant
Solutions’ and Assurant Specialty Property’s agreements to reinsure
premiums and risks related to business generated by certain clients
to the clients’ own captive insurance companies or to reinsurance
subsidiaries in which the clients have an ownership interest. To mitigate
exposure to credit risk for these reinsurers, the Company evaluates the
nancial condition of the reinsurer and holds substantial collateral (in
the form of funds withheld, trusts, and letters of credit) as security.
e Not Rated category also includes recoverables from the National
Flood Insurance Program and the Florida Hurricane Catastrophe Fund.
An allowance for doubtful accounts related to reinsurance recoverables
is recorded on the basis of periodic evaluations of balances due from
reinsurers (net of collateral), reinsurer solvency, management’s experience
and current economic conditions.  e allowance for doubtful accounts
was $10,633 at December31, 2012 and 2011.
Information about the valuation allowance for reinsurance recoverable is as follows:
Years Ended December31,
2012 2011
Balance as of beginning-of-year $ 10,633 $ 15,635
Provision 0 356
Other additions 0 57
Direct write-downs charged against the allowance 0 (5,415)
BALANCE AS OF THE ENDOFYEAR $ 10,633 $ 10,633
e e ect of reinsurance on premiums earned and bene ts incurred was as follows:
Years Ended December31,
2012 2011 2010
Long
Duration Short
Duration Total Long
Duration Short
Duration Total Long
Duration Short
Duration Total
Direct earned
premiums and other
considerations $ 568,308 $ 8,711,619 $ 9,279,927 $ 584,532 $ 8,553,695 $ 9,138,227 $ 641,284 $ 8,664,723 $ 9,306,007
Premiums assumed 12,536 278,160 290,696 13,048 306,920 319,968 7,467 317,635 325,102
Premiums ceded (322,428) (2,011,211) (2,333,639) (330,523) (2,002,304) (2,332,827) (345,837) (1,882,233) (2,228,070)
NET EARNED
PREMIUMS
AND OTHER
CONSIDERATIONS $ 258,416 $ 6,978,568 $ 7,236,984 $ 267,057 $ 6,858,311 $ 7,125,368 $ 302,914 $ 7,100,125 $ 7,403,039
Direct policyholder
bene ts $ 909,670 $ 4,152,252 $ 5,061,922 $ 1,074,435 $ 3,653,693 $ 4,728,128 $ 1,630,815 $ 3,465,590 $ 5,096,405
Policyholder bene ts
assumed 27,681 173,581 201,262 29,619 228,368 257,987 24,430 209,975 234,405
Policyholder bene ts
ceded (581,890) (1,025,890) (1,607,780) (734,970) (501,411) (1,236,381) (1,284,157) (410,654) (1,694,811)
NET
POLICYHOLDER
BENEFITS $ 355,461 $ 3,299,943 $ 3,655,404 $ 369,084 $ 3,380,650 $ 3,749,734 $ 371,088 $ 3,264,911 $ 3,635,999