Assurant 2012 Annual Report Download - page 57

ASSURANT, INC.2012 Form10-K 49
PARTII
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
a $6,630 (after-tax) overall loss and loss adjustment expense reserve
release (amounts are included in both policyholders bene ts and
selling, underwriting and general expenses) related to annual reserve
adequacy studies in Twelve Months 2011 compared to $1,829 (after-
tax) in Twelve Months 2010. Twelve Months 2010 general expenses
included restructuring costs of $4,349 (after-tax). Twelve Months 2011
had no restructuring costs.
Total Revenues
Total revenues decreased $39,890 to $1,219,045 for Twelve Months
Ended 2011 from $1,258,935 for Twelve Months Ended 2010. Excluding
single premiums, net earned premiums and other considerations
decreased $42,308.  e decrease in net earned premiums and other
considerations was primarily driven by the loss of policyholders as a
result of pricing actions on a block of assumed disability reinsurance
business.
Total Benefi ts, Losses and Expenses
Total bene ts, losses and expenses decreased $7,992 to $1,153,795
for Twelve Months 2011 from $1,161,787 for Twelve Months 2010.
During Twelve Months 2011 policyholder bene ts were reduced
$10,500 based on the results of our annual reserve adequacy studies
compared to $5,758 in Twelve Months 2010. Excluding the impact
of the reserve adequacy studies, the loss ratio increased to 73.1% from
70.1%, primarily driven by less favorable loss experience across our
disability and life insurance products.
Selling, underwriting and general expenses decreased 2% to $386,072 for
Twelve Months 2011 from $395,737 for Twelve Months 2010, however
the expense ratio increased slightly to 35.4% from 35.1% driven by
lower net earned premiums. Twelve Months 2010 included $6,690 in
restructuring costs. Twelve Months 2011 had no restructuring costs.
In addition, general expenses were $2,644 lower in Twelve Months
2011 compared with Twelve Months 2010 due to our annual reserve
adequacy studies. Excluding the restructuring costs and the reserve
adequacy adjustment in both years, the expense ratio increased to
35.4% for Twelve Months 2011 from 34.3% for Twelve Months 2010.
Corporate and Other
 e table below presents information regarding the Corporate and Other segment’s results of operations:
For the Years Ended December31,
2012 2011 2010
Revenues:
Net investment income $ 20,327 $ 17,147 $ 17,873
Net realized gains on investments 64,353 32,580 48,403
Amortization of deferred gains on disposal of businesses 18,413 20,461 10,406
Fees and other income 3,713 305 200
Total revenues 106,806 70,493 76,882
Bene ts, losses and expenses:
Policyholder bene ts (1,061) 6,474 (2,038)
Selling, underwriting and general expenses 111,423 102,359 101,830
Interest expense 60,306 60,360 60,646
Total bene ts, losses and expenses 170,668 169,193 160,438
Segment loss before bene t for income taxes (63,862) (98,700) (83,556)
Bene t for income taxes (8,804) (113,922) (24,054)
SEGMENT NET LOSS INCOME $ 55,058 $ 15,222 $ 59,502
Year Ended December 31, 2012 Compared to the Year
Ended December 31, 2011
Net (Loss) Income
Segment results decreased $70,280 to $(55,058) for Twelve Months
2012 compared to $15,222 for Twelve Months 2011.  is decrease is
mainly due to an $80,000 release of a capital loss valuation allowance
related to deferred tax assets during Twelve Months 2011.
Total Revenues
Total revenues increased $36,313, to $106,806 for Twelve Months
2012 compared with $70,493 for Twelve Months 2011.  is increase is
primarily due to a $31,773 increase in net realized gains on investments.
Total Benefi ts, Losses and Expenses
Total bene ts, losses and expenses increased $1,475 to $170,668 for
Twelve Months 2012 compared with $169,193 for Twelve Months
2011.  e increase is primarily due to increased employee related
bene ts and new business investments for areas targeted for growth
partially o set by decreased policyholder bene ts incurred of $7,535
associated with discontinued businesses.