Assurant 2012 Annual Report Download - page 64

ASSURANT, INC.2012 Form10-K56
PARTII
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
Cash Flows for the Years Ended December 31, 2012,
2011 and 2010.
Operating Activities:
We typically generate operating cash in ows from premiums collected
from our insurance products and income received from our investments
while out ows consist of policy acquisition costs, bene ts paid, and
operating expenses.  ese net cash  ows are then invested to support the
obligations of our insurance products and required capital supporting
these products. Our cash  ows from operating activities are a ected
by the timing of premiums, fees, and investment income received and
expenses paid.
Net cash provided by operating activities was $673,215 and $849,633
for the years ended December31, 2012 and 2011, respectively.  e
decreased operating activity cash  ow is primarily due to increased
catastrophe loss payments, changes in the timing of payments, including
commissions and the Company’s de ned contribution match, partially
o set by increased net written premiums in our Assurant Solutions
and Assurant Specialty Property segments.
Net cash provided by operating activities was $849,633 and $540,313
for the years ended December31, 2011 and 2010, respectively.  e
increased operating activity cash  ow was primarily due to an increase
in net written premiums in our Assurant Solutions and Assurant
Specialty Property segments.
Investing Activities:
Net cash used in investing activities was $449,883 and $196,588
for the years ended December31, 2012 and 2011, respectively.  e
increase in cash used in investing activities is primarily due to increased
purchases of  xed maturity and equity securities.
Net cash used in investing activities was $196,588 and $8,876 for the
years ended December31, 2011 and 2010, respectively.  e increase
in cash used in investing activities is primarily due to the acquisition
of SureDeposit during the second quarter of 2011 and changes in our
short-term investments and commercial mortgage loans on real estate.
Financing Activities:
Net cash used in  nancing activities was $480,641 and $636,848 for the
years ended December31, 2012 and 2011, respectively.  e decrease
in cash used in  nancing activities is primarily due to a decrease in the
acquisition of common stock.
Net cash used in  nancing activities was $636,848 and $699,473 for the
years ended December31, 2011 and 2010, respectively.  e decrease
in cash used in  nancing activities is primarily due to changes in the
tax bene t from share-based payment arrangements and the change
in obligation under securities lending.
 e table below shows our cash out ows for interest and dividends for the periods indicated:
For the Years Ended December31,
2012 2011 2010
Security
Interest paid on mandatory redeemable preferred stock and debt $ 60,188 $ 60,244 $ 60,539
Common stock dividends 69,393 67,385 69,618
TOTAL $ 129,581 $ 127,629 $ 130,157
Commitments and Contingencies
We have obligations and commitments to third parties as a result of our operations.  ese obligations and commitments, as of December31,2012,
are detailed in the table below by maturity date as of the dates indicated:
As of December31, 2012
Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years
Contractual obligations:     
Insurance liabilities(1) $ 19,906,787 $ 2,355,437 $ 1,700,600 $ 1,586,273 $ 14,264,477
Debt and related interest 1,676,438 60,188 564,125 64,125 988,000
Operating leases 111,696 26,184 43,792 23,311 18,409
Pension obligations and postretirement bene t 632,639 43,742 118,264 112,842 357,791
Commitments:
Investment purchases outstanding:
Commercial mortgage loans on real estate 9,900 9,900 0 0 0
Liability for unrecognized tax bene t 11,446 6,553 4,440 453 0
TOTAL OBLIGATIONS AND COMMITMENTS $ 22,348,906 $ 2,502,004 $ 2,431,221 $ 1,787,004 $ 15,628,677
(1) Insurance liabilities reflect estimated cash payments to be made to policyholders.