Assurant 2015 Annual Report Download - page 27

ASSURANT, INC. – 2015 Form 10-K 15
PART I
ITEM 1A Risk Factors
Available Information
Our annual reports on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K, the Statements of Benecial
Ownership of Securities on Forms 3, 4 and 5 for our Directors
and Ofcers and all amendments to such reports, led or
furnished pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, as amended, are available free of charge
through the SEC website at www.sec.gov� These documents
are also available at the SEC’s Public Reference Room at 100F
Street, NE, Washington, DC 20549. Further information on
the operation of the Public Reference room can be found by
calling the SEC at 1-800-SEC-0330. These documents are also
available free of charge through the Investor Relations page
of our website (www.assurant.com) as soon as reasonably
practicable after ling. Other information found on our
website is not part of this or any other report led with or
furnished to the SEC�
ITEM 1A Risk Factors
Certain factors may have a material adverse effect on our business, nancial condition and results of operations and you
should carefully consider them. It is not possible to predict or identify all such factors.
Risks Related to Our Company
Our revenues and prots may decline if we are
unable to maintain relationships with signicant
clients, distributors and other parties important
to the success of our business.
The success of our business depends largely on our relationships
and contractual arrangements with signicant clients-including
mortgage servicers, lenders, mobile device carriers, retailers,
OEMs and others-and with brokers, agents and other parties.
Many of these arrangements are exclusive and some rely
on preferred provider or similar relationships. If our key
clients, intermediaries or other parties terminate important
business arrangements with us, or renew contracts on terms
less favorable to us, our cash ows, results of operations and
nancial condition could be materially adversely affected. In
addition, each of our Assurant Solutions and Assurant Specialty
Property segments receives a substantial portion of its revenue
from a few clients. As of December 31, 2015 no single client
accounted for 10% or more of our consolidated revenue.
However, a reduction in business with or the loss of one or
more of our signicant clients could have a material adverse
effect on the results of operations and cash ows of individual
segments or of the Company� Examples of important business
arrangement include, at Assurant Solutions, relationships
with mobile device carriers, retailers and nancial and other
institutions through which we distribute our products, including
an exclusive distribution relationship with SCI relating to the
distribution of our preneed insurance policies. In Assurant
Specialty Property, we have exclusive and non-exclusive
relationships with certain mortgage lenders and manufactured
housing lenders and property managers, and in turn we are
eligible to insure properties securing loans guaranteed by or
sold to government-sponsored entities (“GSEs”) and serviced
by the mortgage loan servicers with whom we do business.
In our lender-placed insurance business, the change in
requirements for eligibility to insure properties securing loans
of GSEs-and restrictions imposed by state regulators-could
affect our ability to do business with certain mortgage loan
servicers or the volume or protability of such business. In
addition, the transfer by mortgage servicer clients of loan
portfolios to other carriers or the participation by other
carriers in insuring or reinsuring lender-placed insurance risks
that we have historically insured could materially reduce our
revenues and prots from this business.
We are also subject to the risk that clients, distributors
and other parties may face nancial difculties, reputational
issues or problems with respect to their own products and
services or regulatory restrictions that may lead to decreased
sales of our products and services. Moreover, if one or more
of our clients or distributors consolidate or align themselves
with other companies, we may lose signicant business,
resulting in material decreases in revenues and prots.
Signicant competitive pressures could affect
our results of operations.
We compete for customers and distributors with many
insurance companies and other nancial services companies
for business and individual customers, employer and other
group customers, agents, brokers and other distribution
relationships, and with logistics and mobile device repair
companies for the business of cell phone carriers and original
equipment manufacturers� Some of our competitors may
offer a broader array of products than our subsidiaries or
have a greater diversity of distribution resources, better
brand recognition, more competitive pricing, lower costs,
greater nancial strength, more resources, or higher ratings.
Many of our insurance products, particularly our group benets
policies, are underwritten annually. There is a risk that group
purchasers may be able to obtain more favorable terms from
competitors, rather than renewing coverage with us. As a