Assurant 2013 Annual Report Download - page 123

ASSURANT, INC. – 2013 Form 10-K F-37
12 Reserves
The following table provides a roll forward of the Company’s product lines with the most signifi cant claims and benefi ts
payable balances: group term life, group disability, medical and property and warranty lines of business. Claims and benefi ts
payable is comprised of case and IBNR reserves.
Group Term
Life
Group
Disability
Short Duration
Medical(2)
Long Duration
Medical(2)
Property and
Warranty
Balance as of December 31, 2010,
gross of reinsurance(3) $ 219,284 $ 1,404,274 $ 290,390 $ 18,559 $ 518,431
Less: Reinsurance ceded and other(1) (3,021) (37,182) (15,562) (703) (149,032)
Balance as of January 1, 2011, net of reinsurance 216,263 1,367,092 274,828 17,856 369,399
Incurred losses related to:
Current year 143,240 326,036 1,238,393 92,009 997,563
Prior year’s interest 8,164 60,908 0 0 0
Prior year (s) (26,575) (63,834) (60,247) (3,579) (26,849)
Total incurred losses 124,829 323,110 1,178,146 88,430 970,714
Paid losses related to:
Current year 85,374 65,287 993,687 76,792 740,451
Prior year (s) 39,490 284,869 208,257 13,903 218,947
Total paid losses 124,864 350,156 1,201,944 90,695 959,398
Balance as of December 31, 2011,
net of reinsurance(3) 216,228 1,340,046 251,030 15,591 380,715
Plus: Reinsurance ceded and other (1) 3,542 37,370 17,904 2,964 189,977
Balance as of December 31, 2011
gross of reinsurance(3) $ 219,770 $ 1,377,416 $ 268,934 $ 18,555 $ 570,692
Less: Reinsurance ceded and other(1) (3,542) (37,370) (17,904) (2,964) (189,977)
Balance as of January 1, 2012, net of reinsurance 216,228 1,340,046 251,030 15,591 380,715
Incurred losses related to:
Current year 126,712 287,459 1,130,525 99,887 1,142,285
Prior year’s interest 7,993 58,502 0 0 0
Prior year (s) (27,918) (58,562) (52,515) (3,831) (46,006)
Total incurred losses 106,787 287,399 1,078,010 96,056 1,096,279
Paid losses related to:
Current year 79,071 68,269 903,984 84,071 797,492
Prior year (s) 43,004 288,255 193,745 11,465 227,502
Total paid losses 122,075 356,524 1,097,729 95,536 1,024,994
Balance as of December 31, 2012,
net of reinsurance(3) 200,940 1,270,921 231,311 16,111 452,000
Plus: Reinsurance ceded and other(1) 2,817 38,166 16,447 736 715,058
Balance as of December 31, 2012
gross of reinsurance(3) $ 203,757 $ 1,309,087 $ 247,758 $ 16,847 $ 1,167,058
Less: Reinsurance ceded and other(1) (2,817) (38,166) (16,447) (736) (715,058)
Balance as of January 1, 2013, net of reinsurance 200,940 1,270,921 231,311 16,111 452,000
Incurred losses related to:
Current year 121,708 284,005 1,097,313 110,933 1,140,500
Prior year’s interest 7,773 56,705 0 0 0
Prior year (s) (14,300) (29,975) (42,063) (3,971) (23,801)
Total incurred losses 115,181 310,735 1,055,250 106,962 1,116,699
Paid losses related to:
Current year 75,119 70,236 894,533 98,183 802,130
Prior year (s) 43,694 278,559 184,824 11,869 310,660
Total paid losses 118,813 348,795 1,079,357 110,052 1,112,790
Balance as of December 31, 2013,
net of reinsurance(3) 197,308 1,232,861 207,204 13,021 455,909
Plus: Reinsurance ceded and other(1) 2,463 38,990 14,978 618 183,315
BALANCE AS OF DECEMBER 31, 2013 GROSS
OF REINSURANCE(3) $ 199,771 $ 1,271,851 $ 222,182 $ 13,639 $ 639,224
(1) Reinsurance ceded and other includes claims and benefits payable balances that have either been (a) reinsured to third parties, (b) established for
claims related expenses whose subsequent payment is not recorded as a paid claim, or (c) reserves established for obligations that would persist
even if contracts were cancelled (such as extension of benefits), which cannot be analyzed appropriately under a roll-forward approach.
(2) Short duration and long duration medical methodologies used for settling claims and benefits payable are similar.
(3) The Company’s net retained credit life and disability claims and benefits payable were $54,483, $64,031 and $69,264 at December 31, 2013, 2012
and 2011.