Assurant 2015 Annual Report Download - page 26

ASSURANT, INC. – 2015 Form 10-K14
PART I
ITEM 1 Business
We are also subject to certain U.S. and foreign laws applicable
to businesses generally, including anti-corruption laws.
The Foreign Corrupt Practices Act of 1977 (the “FCPA”)
regulates U.S. companies in their dealings with foreign
ofcials, prohibiting bribes and similar practices. In addition,
the U.K. Anti-Bribery Act has wide applicability to certain
activities that affect U.K. companies, their commercial
activities in the U.K., and potentially that of their afliates
located outside of the U.K.
Additionally, the International Association of Insurance
Supervisors (the “IAIS”) is developing a model common
framework (“ComFrame”) for the supervision of Internationally
Active Insurance Groups (“IAIGs”), which includes additional
group-wide supervisory oversight across national boundaries
and the establishment of ongoing supervisory colleges. The IAIS
has announced that it expects by 2016 to develop a risk-based
global insurance capital standard applicable to IAIGs, with
full implementation beginning in 2019� As of December 31,
2015, Assurant meets the numerical criteria to qualify as an
IAIG, but the decision whether to treat Assurant as an IAIG is
left to the discretion of its domestic and foreign insurance
regulators� Should such regulators decide to treat Assurant as
an IAIG, Assurant will be subject to the additional requirements
of ComFrame. At this time, we cannot predict whether our
insurance regulators will treat us as an IAIG, and what additional
capital requirements, compliance costs or other burdens these
requirements would impose on us, if we were subject to them.
Securities and Corporate Governance
Regulation
As a company with publicly-traded securities, Assurant
is subject to certain legal and regulatory requirements
applicable generally to public companies, including the
rules and regulations of the U�S� Securities and Exchange
Commission (the “SEC”) and the New York Stock Exchange
(the “NYSE”) relating to public reporting and disclosure,
accounting and nancial reporting, and corporate governance
matters. Additionally, Assurant, Inc. is subject to the corporate
governance laws of Delaware, its state of incorporation.
Environmental Regulation
Because we own and operate real property, we are subject
to federal, state and local environmental laws. Potential
environmental liabilities and costs in connection with any
required remediation of such properties is an inherent risk
in property ownership and operation. Under the laws of
several states, contamination of a property may give rise
to a lien on the property to secure recovery of the costs of
the cleanup, which could have priority over the lien of an
existing mortgage against the property and thereby impair
our ability to foreclose on that property should the related
loan be in default. In addition, under certain circumstances,
we may be liable for the costs of addressing releases or
threatened releases of hazardous substances at properties
securing mortgage loans held by us�
Other Non-Insurance Regulation
As the Company continues to evolve its business mix to cover
other non-insurance based products and services, it becomes
subject to other legal and regulatory requirements, including
regulations of the Consumer Financial Protection Bureau and
other federal, state and municipal regulatory bodies, as well
as additional regulatory bodies in non-U.S. jurisdictions.
Other Information
Customer Concentration
No one customer or group of afliated customers accounts
for 10% or more of the Company’s consolidated revenues.
Employees
We had approximately 16,700 employees as of January 31,
2016. Assurant Solutions has employees in Argentina, Brazil,
Italy, Spain and Mexico that are represented by labor unions
and trade organizations. We believe that employee relations
are satisfactory�
Sources of Liquidity
For a discussion of the Company’s sources and uses of funds,
see “Item 7 — Management’s Discussion and Analysis of
Financial Condition and Results of Operations — Liquidity
and Capital Resources,” and Note 15 to the Consolidated
Financial Statements contained elsewhere in this report.
Taxation
For a discussion of tax matters affecting the Company and
its operations, see Note 8 to the Consolidated Financial
Statements contained elsewhere in this report.
Financial Information about Reportable
Business Segments
For nancial information regarding reportable business
segments of the Company, see “Item 7 — Management’s
Discussion and Analysis of Financial Condition and Results
of Operations,” and Note 22 to the Consolidated Financial
Statements contained elsewhere in this report.