Assurant 2012 Annual Report Download - page 38

ASSURANT, INC.2012 Form10-K30
PARTII
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
As of and for the years ended December31,
2012 2011 2010 2009
2008
Earnings per share:
Basic
NET INCOME $ 5.74 $ 5.58 $ 2.52 $ 3.67 $ 3.79
Diluted
NET INCOME $ 5.67 $ 5.51 $ 2.50 $ 3.66 $ 3.76
DIVIDENDS PER SHARE $ 0.81 $ 0.70 $ 0.63 $ 0.59 $ 0.54
Share data:
Weighted average shares outstanding used in basic
per share calculations 84,276,427 96,626,306 110,632,551 118,036,632 118,005,967
Plus: Dilutive securities 1,030,638 1,169,003 840,663 459,008 968,712
WEIGHTED AVERAGE SHARES USED
INDILUTED PER SHARE CALCULATIONS 85,307,065 97,795,309 111,473,214 118,495,640 118,974,679
Selected Consolidated Balance Sheet Data:
Cash and cash equivalents and investments $ 15,885,722 $ 15,192,878 $ 14,670,364 $ 14,476,384 $ 13,107,476
Total assets $ 28,946,607 $ 27,019,862 $ 26,345,501 $ 25,814,258 $ 24,468,894
Policy liabilities(5) $ 18,666,355 $ 17,278,342 $ 16,616,206 $ 15,969,204 $ 15,907,006
Debt $ 972,399 $ 972,278 $ 972,164 $ 972,058 $ 971,957
Mandatorily redeemable preferred stock $ 0 $ 0 $ 5,000 $ 8,160 $ 11,160
Total stockholders’ equity $ 5,185,366 $ 4,873,950 $ 4,633,136 $ 4,707,158 $ 3,563,042
Per share data:
Total book value per share(6) $ 64.93 $ 54.31 $ 44.88 $ 40.03 $ 30.29
(1) Included in net realized gains (losses) are other-than-temporary impairments of $1,843, $7,836, $11,167, $38,660 and $340,153 for 2012, 2011, 2010, 2009 and 2008,
respectively.
(2) During 2012, we incurred losses of $250,206, mainly associated with Superstorm Sandy. During 2011, we incurred losses of $157,645 associated with Hurricane Irene, Tropical
Storm Lee, wildfires in Texas and severe storms, including tornados in the southeast. During 2008, we incurred losses of $132,615 associated with Hurricanes Gustav and Ike.
Reportable catastrophe losses include only individual catastrophic events that generated losses to the Company in excess of $5,000, pre-tax and net of reinsurance.
(3) Following the completion of our annual goodwill impairment analysis, we recorded an impairment charge of $306,381 related to Assurant Employee Benefits and Assurant Health
and a charge of $83,000 related to Assurant Employee Benefits during the fourth quarters of 2010 and 2009, respectively. The impairment charges resulted in a decrease to net income
but did not have any related tax benefit.
(4) During 2011, we had an $80,000 release of a capital loss valuation allowance related to deferred tax assets. During 2008, we recorded a $84,864 tax benefit due to the sale of a
non-operating subsidiary and the related deferred tax assets on a capital loss carryover.
(5) Policy liabilities include future policy benefits and expenses, unearned premiums and claims and benefits payable.
(6) Total stockholders’ equity divided by the basic shares of common stock outstanding. At December31, 2012, 2011, 2010, 2009 and 2008 there were 79,866,858, 89,743,761,
103,227,238, 117,591,250 and 117,640,936 shares, respectively, of common stock outstanding.
ITEM 7 Management’s Discussion and Analysis of
Financial Condition and Results of Operations
 e following discussion and analysis of our  nancial condition and results of operations should be read in conjunction with our consolidated
 nancial statements and accompanying notes which appear elsewhere in this report. It contains forward-looking statements that involve risks and
uncertainties. Our actual results may di er materially from those anticipated in these forward-looking statements as a result of various factors,
including those discussed below and elsewhere in this report, particularly under the headings “Item 1A—Risk Factors” and “Forward-Looking
Statements.”