Assurant 2012 Annual Report Download - page 128

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ASSURANT, INC.2012 Form10-KF-52
21 Segment Information
For all the  nancial assets included in the above hierarchy, the market
valuation technique is used. For the year ended December31, 2012,
the application of the valuation technique applied to similar assets
has been consistent.
Level 1 and Level 2 securities are valued using various observable
market inputs obtained from a pricing service.  e pricing service
prepares estimates of fair value measurements for our Level 2 securities
using proprietary valuation models based on techniques such as matrix
pricing which include observable market inputs. Observable market
inputs for Level 1 and 2 securities are consistent with the observable
market inputs described in Note6, Fair Value Disclosures.  e MIFSF
utilizes all three levels of inputs to price its holdings. Since unobservable
inputs may have been signi cant to the fair value measurement, it was
classi ed as Level 3.
e Company obtains one price for each investment. A quarterly
analysis is performed to assess if the evaluated prices represent a
reasonable estimate of their fair value.  is process involves quantitative
and qualitative analysis and is overseen by bene ts, investment and
accounting professionals. Examples of procedures performed include,
but are not limited to, initial and on-going review of pricing service
methodologies, review of pricing statistics and trends, and comparison
of prices for certain securities with two di erent appropriate price
sources for reasonableness. Following this analysis, the Company uses
the best estimate of fair value based upon all available inputs.  e
pricing service provides information regarding their pricing procedures
so that the Company can properly categorize the Plans’  nancial assets
in the fair value hierarchy.
e Company expects to contribute up to $50,000 to its quali ed
pension plan in 2013. No contributions are expected to be made to
the retirement health bene t plan in 2013.
e following pension bene ts, which re ect expected future service, as appropriate, are expected to be paid:
Pension Bene ts Retirement Health Bene ts
2013 $ 40,926 $ 2,816
2014 43,723 3,097
2015 68,015 3,429
2016 51,108 3,819
2017 53,691 4,224
2018-2021 330,292 27,499
TOTAL $ 587,755 $ 44,884
Defi ned Contribution Plan
e Company and its subsidiaries participate in a de ned contribution plan covering substantially all employees.  e de ned contribution plan
provides bene ts payable to participants on retirement or disability and to bene ciaries of participants in the event of the participant’s death.  e
amounts expensed by the Company related to this plan were $37,237, $33,337 and $33,043 in 2012, 2011, and 2010, respectively.
21. Segment Information
e Company has  ve reportable segments, which are de ned based
on the nature of the products and services o ered: Assurant Solutions,
Assurant Specialty Property, Assurant Health, Assurant Employee
Bene ts, and Corporate& Other. Assurant Solutions provides debt
protection administration, credit-related insurance, warranties and
service contracts, and pre-funded funeral insurance. Assurant Specialty
Property provides lender-placed homeowners insurance and manufactured
housing homeowners insurance. Assurant Health provides individual
health and small employer group health insurance. Assurant Employee
Bene ts primarily provides group dental insurance, group disability
insurance, and group life insurance. Corporate& Other includes
activities of the holding company,  nancing and interest expenses,
net realized gains (losses) on investments and interest income earned
from short-term investments held. Corporate& Other also includes
the amortization of deferred gains associated with the sales of Fortis
Financial Group and Long-Term Care through reinsurance agreements.
e Company evaluates performance of the operating segments based
on segment income (loss) after-tax excluding realized gains (losses)
on investments.  e Company determines reportable segments in a
manner consistent with the way the Chief Operating Decision Maker
(“CODM”) makes operating decisions and assesses performance.  e
accounting policies of the reportable segments are the same as those
described in the summary of signi cant accounting policies. See Note2
for further information.