Assurant (AIZ) 10-Q 4 Nov 09 2009 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
Share data in Thousands	9 Months Ended Sep. 30, 2009	Nov. 02, 2009
Document Information
Document Type	10-Q
Document Period End Date	2009-09-30
Amendment Flag	false
Entity Information
Current Fiscal Year End Date	--12-31
Entity Central Index Key	0001267238
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Registrant Name	ASSURANT INC,
Entity Common Stock, Shares Outstanding		116,799,796

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) (USD $)
In Thousands	Sep. 30, 2009	Dec. 31, 2008
Assets
Fixed maturity securities available for sale, at fair value (amortized cost - $9,598,085 in 2009 and $9,218,644 in 2008)	$9,964,609	$8,631,687
Equity securities available for sale, at fair value (cost - $523,484 in 2009 and $562,940 in 2008)	502,864	434,452
Commercial mortgage loans on real estate, at amortized cost	1,449,108	1,506,694
Policy loans	56,401	58,096
Short-term investments	445,684	703,402
Collateral held under securities lending	186,467	234,027
Other investments	532,860	498,434
Total investments	13,137,993	12,066,792
Cash and cash equivalents	1,235,851	1,040,684
Premiums and accounts receivable, net	515,631	513,181
Reinsurance recoverables	4,083,681	4,010,170
Accrued investment income	162,824	144,679
Tax receivable		44,156
Deferred income taxes, net	153,824	449,372
Deferred acquisition costs	2,555,762	2,650,672
Property and equipment, at cost less accumulated depreciation	274,646	278,621
Goodwill	1,009,089	1,001,899
Value of business acquired	97,992	108,204
Other assets	498,002	427,347
Assets held in separate accounts	1,940,283	1,778,809
Total assets	25,665,578	24,514,586
Liabilities
Future policy benefits and expenses	7,282,280	7,095,645
Unearned premiums	5,154,685	5,407,859
Claims and benefits payable	3,327,991	3,302,731
Commissions payable	233,209	233,200
Reinsurance balances payable	62,728	88,393
Funds held under reinsurance	58,970	38,433
Deferred gain on disposal of businesses	167,006	187,360
Obligation under securities lending	197,288	256,506
Accounts payable and other liabilities	1,313,693	1,433,028
Tax payable	43,804
Debt	972,032	971,957
Mandatorily redeemable preferred stock	8,160	11,160
Liabilities related to separate accounts	1,940,283	1,778,809
Total liabilities	20,762,129	20,805,081
Stockholders' equity
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 116,633,314 and 117,368,534 shares outstanding at September 30, 2009 and December 31, 2008, respectively	1,447	1,443
Additional paid-in capital	2,950,953	2,928,160
Retained earnings	3,060,160	2,650,371
Accumulated other comprehensive income (loss)	122,361	(670,946)
Treasury stock, at cost, 28,119,993 and 26,997,943 shares at September 30, 2009 and December 31, 2008, respectively	(1,231,472)	(1,199,523)
Total stockholders' equity	4,903,449	3,709,505
Total liabilities and stockholders' equity	$25,665,578	$24,514,586

Consolidated Balance Sheet Pare

Consolidated Balance Sheet Parenthetical (Unaudited) (USD $)
In Thousands, except Share data	Sep. 30, 2009	Dec. 31, 2008
Consolidated Balance Sheet
Fixed maturity securities available for sale, at amortized cost	$9,598,085	$9,218,644
Equity securities available for sale, cost	$523,484	$562,940
Common stock par value, per share	0.01	0.01
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares outstanding	116,633,314	117,368,534
Treasury stock, shares	28,119,993	26,997,943

Consolidated Statement of Opera

Consolidated Statement of Operations (Unaudited) (USD $)
In Thousands, except Share data	3 Months Ended Sep. 30, 2009		3 Months Ended Sep. 30, 2008		9 Months Ended Sep. 30, 2009		9 Months Ended Sep. 30, 2008
Revenues
Net earned premiums and other considerations	$1,874,398		$1,984,136		$5,624,843		$5,921,069
Net investment income	172,924		192,314		526,335		591,299
Net realized gains (losses) on investments, excluding other-than-temporary impairment losses	22,508		(70,057)		(9,570)		(76,792)
Total other-than-temporary impairment losses	(2,998)		(229,148)		(31,778)		(300,130)
Portion of loss (gain) recognized in other comprehensive income, before taxes	356				(617)
Net other-than-temporary impairment losses recognized in earnings	(2,642)		(229,148)		(32,395)		(300,130)
Amortization of deferred gain on disposal of businesses	6,802		7,379		20,354		22,085
Fees and other income	82,883		69,911		388,792		223,089
Total revenues	2,156,873		1,954,535		6,518,359		6,380,620
Benefits, losses and expenses
Policyholder benefits	941,145		1,095,048		2,890,889		3,030,715
Amortization of deferred acquisition costs and value of business acquired	390,382		422,767		1,176,669		1,253,064
Underwriting, general and administrative expenses	601,120		585,050		1,756,841		1,679,254
Interest expense	15,160		15,190		45,509		45,765
Total benefits, losses and expenses	1,947,807		2,118,055		5,869,908		6,008,798
Income (loss) before provision (benefit) for income taxes	209,066		(163,520)		648,451		371,822
Provision (benefit) for income taxes	64,336		(52,091)		229,818		106,467
Net income (loss)	$144,730		($111,429)		$418,633		$265,355
Earnings Per Common Share Abstract
Basic (1)	1.22	[1]	-0.94	[1]	3.54	[1]	2.25	[1]
Diluted (1)	1.22	[1]	-0.94	[1]	3.54	[1]	2.22	[1]
Dividends per share	0.15		0.14		0.44		0.4
Share Data
Weighted average shares outstanding used in basic per share calculations (1)	118,184,367	[1]	117,985,882	[1]	118,187,358	[1]	118,132,393	[1]
Plus: Dilutive securities (1)	107,474	[1]			74,106	[1]	1,142,858	[1]
Weighted average shares used in diluted per share calculations (1)	118,291,841	[1]	117,985,882	[1]	118,261,464	[1]	119,275,251	[1]
[1]Prior period amounts have been adjusted in accordance with the earnings per share guidance on participating securities and the two class method, which is now within the Financial Accounting Standards Board?s Accounting Standards Codification Topic 260, Earnings Per Share. See Notes 3 and 11.

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity (Unaudited) (USD $)
In Thousands	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income (AccumulatedOtherComprehensiveIncomeMember)	Common Stock	Treasury Stock	Total
Balance at Dec. 31, 2008	$2,928,160	$2,650,371	($670,946)	$1,443	($1,199,523)	$3,709,505
Stock plan exercises	6,499			4		6,503
Stock plan compensation expense	18,005					18,005
Change in tax benefit from share based payment arrangements	(1,711)					(1,711)
Dividends		(51,961)				(51,961)
Acquisition of common stock					(31,949)	(31,949)
Cumulative effect of change in accounting principle, net of taxes of $23,124 (Note 3)		43,117	(43,117)
Comprehensive income:
Net income		418,633				418,633
Other comprehensive income:
Net change in unrealized losses on securities, net of taxes of $(360,780)			762,259			762,259
Net change in other-than-temporary impairment gains recognized in other comprehensive income, net of taxes of $(5,673)			10,536			10,536
Net change in foreign currency translation, net of taxes of $(13,477)			58,970			58,970
Amortization of pension and postretirement unregonized net periodic benefit, net of taxes of $(2,509)			4,659			(4,659)
Balance at Sep. 30, 2009	$2,950,953	$3,060,160	$122,361	$1,447	($1,231,472)	$4,903,449

1_Consolidated Statement of Sha

Consolidated Statement of Shareholders' Equity Parenthetical (Unaudited) (USD $)
In Thousands	9 Months Ended Sep. 30, 2009
Consolidated Statement of Stockholders' Equity
Cumulative effect of change in accounting principle, tax	$23,124
Net change in unrealized losses on securities, tax	(360,780)
Net change in other-than-temporary impairment gains recognized in other comprehensive income, tax	(5,673)
Net change in foreign currency translation, tax	(13,477)
Amortization of pension and postretirement unrecognized net periodic benefit, tax	($2,509)

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Thousands	9 Months Ended Sep. 30, 2009	9 Months Ended Sep. 30, 2008
Net cash provided by operating activities	$213,039	$814,371
Investing activities
Fixed maturity securities available for sale	825,713	1,727,766
Equity securities available for sale	44,437	239,956
Property and equipment and other	313	380
Subsidiary, net of cash transferred		31,853
Maturities, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale	476,501	445,164
Purchases of:
Fixed maturity securities available for sale	(1,514,177)	(2,046,675)
Equity securities available for sale	(26,621)	(314,990)
Property and equipment and other	(38,366)	(37,388)
Subsidiaries and warranty business, net of cash transferred	(3,200)	(142,689)
Change in commercial mortgage loans on real estate	55,078	(69,004)
Change in short-term investments	261,197	(238,878)
Change in other invested assets	(19,910)	(37,072)
Change in policy loans	1,904	(472)
Change in collateral held under securities lending	59,218	179,232
Net cash provided by (used in) investing activities	122,087	(262,817)
Financing activities
Repayment of mandatorily redeemable preferred stock	(3,000)	(10,000)
Change in tax benefit from share-based payment arrangements	(1,711)	5,737
Acquisition of common stock	(31,949)	(59,000)
Dividends paid	(51,961)	(47,203)
Change in obligation under securities lending	(59,218)	(185,689)
Net cash used in financing activities	(147,839)	(296,155)
Effect of exchange rate changes on cash and cash equivalents	7,880	(6,684)
Change in cash and cash equivalents	195,167	248,715
Cash and cash equivalents at beginning of period	1,040,684	804,964
Cash and cash equivalents at end of period	$1,235,851	$1,053,679

Nature of Operations

Nature of Operations (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Nature of Operations
Nature of Operations	1. Nature of Operations Assurant, Inc. (the Company) is a holding company whose subsidiaries provide specialized insurance products and related services in North America and selected other international markets. The Company is traded on the New York Stock Exchange under the symbol AIZ. Through its operating subsidiaries, the Company provides creditor-placed homeowners insurance, manufactured housing homeowners insurance, debt protection administration, credit-related insurance, warranties and service contracts, individual health and small employer group health insurance, group dental insurance, group disability insurance, group life insurance and pre-funded funeral insurance.

Basis of Presentation

Basis of Presentation (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Basis of Presentation
Basis of Presentation	2. Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Accordingly, these statements do not include all of the information and footnotes required by GAAP for complete financial statements. The interim financial data as of September30, 2009 and for the three and nine months ended September30, 2009 and September30, 2008 is unaudited; in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary to a fair statement of the results for the interim periods. The unaudited interim consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the 2009 presentation. Effective January1, 2009, new preneed life insurance policies in which death benefit adjustments are determined at the discretion of the Company are accounted for as universal life contracts under the universal life insurance guidance which is now within the Financial Accounting Standards Boards (FASB) Accounting Standards Codification (ASC) Topic 944, Financial Services - Insurance. For contracts sold prior to January1, 2009, these preneed life insurance policies were accounted for and will continue to be accounted for under the limited pay insurance guidance, which is also within ASC Topic 944. The change from reporting certain preneed life insurance policies in accordance with the universal life insurance guidance versus the limited pay insurance guidance is not material to the statement of operations or balance sheet. In accordance with the universal life insurance guidance, income earned on new preneed life insurance policies is presented within policy fee income. Under the limited pay insurance guidance, the consideration received on preneed policies is presented separately as net earned premiums, with policyholder benefits expense being separately disclosed as incurred losses. As previously noted, the effects on net income for the three and nine months ended September30, 2009 were not material. Operating results for the three and nine months ended September30, 2009 are not necessarily indicative of the results that may be expected for the year ending December31, 2009. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Companys Annual Report on Form 10-K for the year ended December31, 2008.

Recent Accounting Pronouncement

Recent Accounting Pronouncements (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Recent Accounting Pronouncements
Recent Accounting Pronouncements	3. Recent Accounting Pronouncements Recent Accounting Pronouncements - Adopted On July1, 2009, the Company adopted the new guidance on GAAP, which is now within ASC Topic 105, GAAP. The new guidance establishes a single source of authoritative accounting and reporting guidance recognized by the FASB for nongovernmental entities (the Codification). The Codification does not change current GAAP, but is intended to simplify user access to all authoritative GAAP by providing all the authoritative literature related to a particular topic in one place. All existing accounting standard documents will be superseded and all other accounting literature not included in the Codification will be considered non-authoritative. The adoption of the new guidance did not have an impact on the Companys financial position or results of operations. References to accounting guidance contained in the Companys consolidated financial statements and disclosures have been updated to reflect terminology consistent with the Codification. Plain English references to the accounting guidance have been made along with references to the ASC topic number and name. On January1, 2009, the Company adopted the revised business combinations guidance, which is now within ASC Topic 805, Business Combinations. The revised guidance retains the fundamental requirements of the previous guidance in that the acquisition method of accounting be used for all business combinations, that an acquirer be identified for each business combination and for goodwill to be recognized and measured as a residual. The revised guidance expands the definition of transactions and events that qualify as business combinations to all transactions and other events in which one entity obtains control over one or more other businesses. The revised guidance broadens the fair value measurement and recognition of assets acquired, liabilities assumed and interests transferred as a result of business combinations. It also increases the disclosure requirements for business combinations in the consolidated financial statements. The adoption of the revised guidance did not have an impact on the Companys financial position or results of operations. However, should the Company enter into any business combination in 2009 or beyond, our financial position or results of operations could incur a significantly different impact than had it recorded the acquisition under the previous business combinations guidance. Earnings volatility could result, depending on the terms of the acquisition. On January1, 2009, the Company adopted the new consolidations guidance, which is now within ASC Topic 810, Consolidation. The new guidance requires that a noncontrolling interest in a subsidiary be separately reported within equity and the amount of consolidated net income attributable to the noncontrolling interest be presented in the statement of operations. The new guidance also calls for consistency in reporting changes in the parents ownership interest in a subsidiary and necessitates fair value measurement of any noncontrolling equity investment retained in a deconsolidation. The adoption of the new guidance did not have an imp

Investments

Investments (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Investments Abstract
Investments	4. Investments The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and OTTI in AOCI of our fixed maturity and equity securities as of the dates indicated: September 30, 2009 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI (1) Fixed maturity securities: United States Government and government agencies and authorities $ 112,074 $ 7,262 $ (22) $ 119,314 $ - States, municipalities and political subdivisions 858,652 63,361 (1,647) 920,366 - Foreign governments 573,817 28,029 (3,374) 598,472 - Asset-backed 52,521 1,808 (926) 53,403 (204) Commercial mortgage-backed 226,875 998 (10,906) 216,967 - Residential mortgage-backed 654,404 32,028 (3,775) 682,657 (2,030) Corporate 7,119,742 397,613 (143,925) 7,373,430 6,508 Total fixed maturity securities $ 9,598,085 $ 531,099 $ (164,575) $ 9,964,609 $ 4,274 Equity securities: Common stocks $ 5,691 $ 288 $ (1,278) $ 4,701 $ - Non-redeemable preferred stocks 517,793 27,264 (46,894) 498,163 - Total equity securities $ 523,484 $ 27,552 $ (48,172) $ 502,864 $ - (1) Represents the amount of other-than-temporary impairment gains (losses) in AOCI, which, from April 1, 2009, were not included in earnings under the new OTTI guidance for debt securities. December 31, 2008 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturity securities: United States Government and government agencies and authorities $ 136,725 $ 13,784 $ (22) $ 150,487 States, municipalities and political subdivisions 874,134 14,122 (14,676) 873,580 Foreign governments 503,620 19,391 (9,693) 513,318 Asset-backed 62,184 157 (2,435) 59,906 Commercial mortgage-backed 241,458 60 (43,415) 198,103 Residential mortgage-backed 677,633 29,670 (1,027) 706,276 Corporate 6,722,890 107,270 (700,143) 6,130,017 Total fixed maturity securities $ 9,218,644 $ 184,454 $ (771,411) $ 8,631,687 Equity securities: Common stocks $ 5,384 $ 283 $ (1,618) $ 4,049 Non-redeemable preferred stocks 557,556 7,120 (134,273) 430,403 Total equity securities $ 562,940 $ 7,403 $ (135,891) $ 434,452 The cost or amortized cost and fair value of fixed maturity securities at September30, 2009 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without penalties. Cost or Amortized Cost Fair Value Due

Fair Value Disclosures

Fair Value Disclosures (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Fair Value Disclosures
Fair Value Disclosures	5. Fair Value Disclosures Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures The fair value measurements and disclosures guidance, which is now within ASC Topic 820, defines fair value, establishes a framework for measuring fair value, creates a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with this guidance, the Company has categorized its recurring basis financial assets and liabilities into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level1)and the lowest priority to unobservable inputs (Level3). The inputs used to measure fair value may fall into differentlevels of the fair value hierarchy.In suchcases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurementin its entirety.The Companys assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specificto the asset or liability. The levels of the fair value hierarchy and its application to the Companys financial assets and liabilities are described below: Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Financial assets and liabilities utilizing Level 1 inputs include certain U.S. mutual funds, money market funds, common stock and certain foreign securities. Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset, either directly or indirectly, for substantially the full term of the asset. Level 2 inputs include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset. The observable inputs are used in valuation models to calculate the fair value for the asset. Financial assets utilizing Level 2 inputs include corporate, municipal, foreign government and private placement bonds, U.S. Government and agency securities, residential and commercial mortgage-backed securities, asset-backed securities, non-redeemable preferred stocks and certain U.S. and foreign mutual funds. Level 3 inputs are unobservable but are significant to the fair value measurement for the asset, and include situations where there is little, if any, market activity for the asset. These inputs reflect managements own assumptions about the assumptions a market participant would use in pricing the asset. Financial assets utilizing Level 3 inputs include certain non-redeemable prefe

Income Taxes

Income Taxes (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Income Taxes
Income Taxes	6. Income Taxes As of December31, 2008, the Company had a cumulative valuation allowance of $98,793 against deferred tax assets. During the nine months ended September 30, 2009, the Company recognized income tax expense of $601, and other comprehensive income of $31,680. The overall impact to the valuation allowance was a net decrease of $31,079. The decrease in the valuation allowance was primarily related to additional unrealized gains in the Companys investment portfolio. It is managements assessment that it is more likely than not that $67,714 of deferred tax assets will not be realized. The Companys ability to realize deferred tax assets depends on its ability to generate sufficient taxable income of the same character within the carryback or carryforward periods. In assessing future GAAP taxable income, the Company has considered all sources of taxable income available to realize its deferred tax asset, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carryback years and tax-planning strategies. If changes occur in the assumptions underlying the Companys tax planning strategies or in the scheduling of the reversal of the Companys deferred tax assets, the valuation allowance may need to be adjusted in the future.

Debt

Debt (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Debt
Debt	7. Debt In February 2004, the Company issued two series of senior notes with an aggregate principal amount of $975,000 (the Senior Notes). The Company received net proceeds of $971,537 from this transaction, which represents the principal amount less the discount. The discount of $3,463 is being amortized over the life of the Senior Notes and is included as part of interest expense on the statement of operations. The interest expense incurred related to the Senior Notes was $15,047 for the three months ended September 30, 2009 and 2008, respectively, and $45,141 for the nine months ended September 30, 2009 and 2008, respectively. There was $7,523 of accrued interest at September 30, 2009 and 2008, respectively. The Company made interest payments of $30,094 on February15, 2009 and 2008 and August 15, 2009 and 2008. In March 2004, the Company established a $500,000 commercial paper program, which is available for working capital and other general corporate purposes. This program is backed up by a $500,000 senior revolving credit facility which expires in April 2010. There were no amounts relating to the commercial paper program outstanding at September 30, 2009. The Company did not use the revolving credit facility during the nine months ended September 30, 2009 or the twelve months ended December31, 2008 and no amounts are currently outstanding. The $500,000 senior revolving credit facility contains a $30,000 commitment from Lehman Brothers Bank, FSB (Lehman). Based on the financial condition of Lehman, the Company is not relying on Lehmans commitment. The revolving credit facility contains restrictive covenants. The terms of the revolving credit facility also require that the Company maintain certain specified minimum ratios and thresholds. Among others, these covenants include maintaining a maximum debt to capitalization ratio and a minimum consolidated adjusted net worth. As of September 30, 2009 the Company was in compliance with all covenants, minimum ratios and thresholds.

Accumulated Other Comprehensive

Accumulated Other Comprehensive (Loss) Income (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Accumulated Other Comprehensive (Loss) Income Abstract
Accumulated Other Comprehensive (Loss) Income	8. Accumulated Other Comprehensive (Loss) Income The components of accumulated other comprehensive (loss) income, net of tax, at September30, 2009 are as follows: Foreign currency translation adjustment Unrealized (losses) gains on securities OTTI Pension under- funding Accumulated other comprehensive (loss) income Balance at December 31, 2008 $ (45,944) $ (478,400) $ - $(146,602) $ (670,946) Cumulative effect of change in accounting principle (after-tax) (1) - (35,359) (7,758) - (43,117) Activity in 2009 58,970 762,259 10,536 4,659 836,424 Balance at September 30, 2009 $ 13,026 $ 248,500 $ 2,778 $(141,943) $ 122,361 (1) Related to the adoption of the new OTTI guidance for debt securities. See Notes 3 and 4 for further information. The amounts in the unrealized (losses) gains on securities column are net of reclassification adjustments of $(27,563), net of tax, for the nine months ended September 30, 2009, for net realized gains (losses) on sales of securities included in net income.

Stock Based Compensation

Stock Based Compensation (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Stock Based Compensation
Stock Based Compensation	9. Stock Based Compensation Long-Term Equity Incentive Plan In May 2008, the shareholders of the Company approved the Assurant, Inc. Long-Term Equity Incentive Plan (ALTEIP), which authorizes the granting of up to 3,400,000 shares of the Companys common stock to employees, officers and non-employee directors. Under the ALTEIP, the Company may grant awards based on shares of our common stock, including stock options, stock appreciation rights (SARs), restricted stock (including performance shares), unrestricted stock, restricted stock units (RSUs), performance share units (PSUs) and dividend equivalents. All future share-based grants will be issued under the ALTEIP. The Compensation Committee of the Board of Directors (the Compensation Committee) has decided to award PSUs and RSUs in 2009. RSUs and PSUs are promises to issue actual shares of common stock at the end of a vesting period or performance period. The RSUs granted to employees under the ALTEIP were based on salary grade and performance and will vest one-third each year over a three-year period. RSUs granted to non-employee directors also vest one-third each year over a three-year period. RSUs receive dividend equivalents in cash during the restricted period and do not have voting rights during the restricted period. PSUs accrue dividend equivalents during the performance period based on a target payout, which will be paid in cash at the end of the performance period based on the actual number of shares issued. For the PSU portion of an award, the number of shares a participant will receive upon vesting is contingent upon the Company meeting certain pre-established performance goals, identified below, at the end of a three-year performance period. These performance goals will be measured to determine the number of shares a participant will receive. The payout levels can vary between 0% and 150% (maximum) of the target (100%)ALTEIP award amount based on the Companys level of performance against the pre-established performance goals. PSU Performance Goals. For 2009, the Compensation Committee has established earnings per share (EPS) growth, revenue growth and total stockholder return as the three performance measures for PSU awards. Earnings per share growth is defined as the year-over-year change in GAAP net income divided by average diluted shares outstanding. Revenue growth is defined as year-over-year change in GAAP total revenues as disclosed in the Companys annual statement of operations. Total stockholders return is defined as appreciation in Company stock plus dividend yield to stockholders. The actual payout level is determined by ranking the average of the Companys performance with respect to all three measures against the average performance of the companies included in the A.M. Best Insurance Index for the relevant period. Under the ALTEIP, the Companys CEO is authorized by the Board of Directors to grant common stock, restricted stock and RSUs to employees other than the executive officers of the Company (as defined in Section16 of the Securities Exchange Act of 1934, as amended (the Exchange Act)). Restricted stock and RSUs granted under this program may have

Stock Repurchase

Stock Repurchase (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Stock Repurchase
Stock Repurchase	10. Stock Repurchase The following table shows the shares repurchased during the periods indicated: Period in 2009 Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Programs January - - - February - - - March - - - April - - - May - - - June - - - July - - - August 863,050 $ 28.45 863,050 September 259,000 28.54 259,000 Total 1,122,050 $ 28.47 1,122,050 On November 10, 2006, the Companys Board of Directors authorized the Company to repurchase up to $600,000 of its outstanding common stock. During the nine months ended September 30, 2009, the Company repurchased 1,122,050 shares of the Companys outstanding common stock at a cost of $31,949 and can repurchase up to $170,044 of additional outstanding common stock under the current authorization.

Earnings Per Common Share

Earnings Per Common Share (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Earnings Per Common Share Abstract
Earnings Per Common Share	11. Earnings Per Common Share In accordance with the earnings per share guidance on participating securities and the two class method, which is now within ASC Topic 260, described in Note 3, restricted stock and RSUs which have non-forfeitable rights to dividends or dividend equivalents are included in calculating basic and diluted earnings per share under the two-class method. The two-class method is an earnings allocation formula that determines EPS for each class of common stock according to dividends declared and participation rights in undistributed earnings. All prior period EPS data presented has been adjusted retrospectively. The following table presents net income, the weighted average common shares used in calculating basic earnings per common share and those used in calculating diluted earnings per common share for each period presented below. Three months ended September 30, Nine months ended September 30, 2009 2008 2009 2008 Numerator Net income (loss) $ 144,730 $ (111,429) $ 418,633 $ 265,355 Deduct dividends paid (17,701) (16,463) (51,961) (47,203) Undistributed earnings $ 127,029 $ (127,892) $ 366,672 $ 218,152 Denominator Weighted average shares outstanding used in basic earnings per share calculations 118,184,367 117,985,882 118,187,358 118,132,393 Incremental common shares from : SARs (1) 107,474 - 74,106 1,137,360 ESPP (1) - - - 5,498 Weighted average shares used in diluted earnings per share calculations 118,291,841 117,985,882 118,261,464 119,275,251 Earnings per common share - Basic Distributed earnings $ 0.15 $ 0.14 $ 0.44 $ 0.40 Undistributed earnings 1.07 (1.08) 3.10 1.85 Net income (loss) $ 1.22 $ (0.94) $ 3.54 $ 2.25 Earnings per common share Diluted Distributed earnings $ 0.15 $ 0.14 $ 0.44 $ 0.40 Undistributed earnings 1.07 (1.08) 3.10 1.82 Net income (loss) $ 1.22 $ (0.94) $ 3.54 $ 2.22 (1) Per the earnings per share guidance, which is now within ASC Topic 260, no potential common shares are included in the computation of diluted per share amount when a loss from operations exists. Average SARs totaling 4,080,321 for the three months ended September 30, 2009 and 4,423,605 and 1,065,998 for the nine months ended September 30, 2009 and 2008, respectively, were outstanding but were anti-dilutive and thus not included in the computation of diluted EPS under the treasury stock method.

Retirement and Other Employee B

Retirement and Other Employee Benefits (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Retirement and Other Employee Benefits
Retirement and Other Employee Benefits	12. Retirement and Other Employee Benefits The components of net periodic benefit cost for the Companys qualified pension benefits plan, nonqualified pension benefits plan and retirement health benefits plan for the three and nine months ended September 30, 2009 and 2008 were as follows: Qualified Pension Benefits Nonqualified Pension Benefits (1) Retirement Health Benefits For the Three Months Ended September 30, For the Three Months Ended September 30, For the Three Months Ended September 30, 2009 2008 2009 2008 2009 2008 Service cost $ 6,609 $ 5,196 $ 468 $ 481 $ 1,110 $ 626 Interest cost 7,562 7,098 1,552 1,572 1,081 958 Expected return on plan assets (8,804) (9,040) - - (547) (717) Amortization of prior service cost 85 717 419 175 417 346 Amortization of net loss (gain) 3,689 399 658 299 50 (118) Settlement gain - - (610) - - - Net periodic benefit cost $ 9,141 $ 4,370 $ 2,487 $ 2,527 $ 2,111 $ 1,095 Qualified Pension Benefits Nonqualified Pension Benefits (1) Retirement Health Benefits For the Nine Months Ended September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, 2009 2008 2009 2008 2009 2008 Service cost $ 17,509 $ 15,796 $ 1,568 $ 1,431 $ 2,460 $ 2,176 Interest cost 22,262 20,248 4,752 4,522 3,181 2,858 Expected return on plan assets (26,404) (27,590) - - (1,497) (1,317) Amortization of prior service cost 285 2,167 719 575 1,067 996 Amortization of net loss (gain) 3,939 2,499 1,208 999 (50) (118) Settlement (gain) loss - - (1,159) 1,748 - - Net periodic benefit cost $ 17,591 $ 13,120 $ 7,088 $ 9,275 $ 5,161 $ 4,595 (1) The Company's nonqualified plans are unfunded. During the first nine months of 2009, $30,000 in cash was contributed to the qualified pension benefits plan (Plan). An additional $10,000 in cash is expected to be contributed to the Plan over the remainder of 2009. The Benefit Plans Investment Committee of the Company (Investment Committee) oversees the investment of the Plan assets and periodically conducts a review of the investment strategies and policies of the Plan. This includes a review of the strategic asset allocation, including the relationship of the Plan liabilities and portfolio structure. The current target asset allocation and their respective ranges are: Low Target High Debt securities 45% 50% 55% Equity securities (2) 45% 50% 55% (2) Target asset allocations for equity securities include allocations for alternative investments. We expect to invest certain plan

Segment Information

Segment Information (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Segment Information
Segment Information	13. Segment Information The Company has five reportable segments, which are defined based on the nature of the products and services offered: Assurant Solutions, Assurant Specialty Property, Assurant Health, Assurant Employee Benefits, and Corporate Other. Assurant Solutions provides credit-related insurance, including life, disability and unemployment, debt protection administration services, warranties and service contracts, life insurance policies and annuity products that provide benefits to fund pre-arranged funerals. Assurant Specialty Property provides creditor-placed homeowners insurance and manufactured housing homeowners insurance. Assurant Health provides individual, short-term and small group health insurance. Assurant Employee Benefits provides employee and employer paid dental, disability, and life insurance products and related services. Corporate Other includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments, interest income earned from short-term investments held and additional costs associated with excess of loss reinsurance programs reinsured and ceded to certain subsidiaries in the London market between 1995 and 1997. Corporate Other also includes the amortization of deferred gains associated with the sales of Fortis Financial Group and Long-Term Care through reinsurance agreements. The Company evaluates performance of the operating business segments based on after-tax segment income (loss) excluding realized gains (losses) on investments. The Company determines reportable segments in a manner consistent with the way the Company organizes for purposes of making operating decisions and assessing performance. The following tables summarize selected financial information by segment: Three Months Ended September 30, 2009 Solutions Specialty Property Health Employee Benefits Corporate Other Consolidated Revenues Net earned premiums and other considerations $ 669,344 $ 478,701 $ 470,385 $ 255,968 $ - $ 1,874,398 Net investment income 97,681 26,550 11,770 33,039 3,884 172,924 Net realized gains on investments - - - - 19,866 19,866 Amortization of deferred gain on disposal of businesses - - - - 6,802 6,802 Fees and other income 50,093 15,100 10,140 7,467 83 82,883 Total revenues 817,118 520,351 492,295 296,474 30,635 2,156,873 Benefits, losses and expenses Policyholder benefits 248,933 156,076 353,412 182,632 92 941,145 Amortization of deferred acquisition costs and value of business acquired 290,200 88,973 1,428 9,781 - 390,382 Underwriting, general and administrative expenses 230,017 118,019 146,047 86,748 20,289 601,120 Interest expense - - - - 15,160 15,160 Total benefits, losses and expenses 769,150 363,068 500,887 279,161 35,541

Commitments and Contingencies

Commitments and Contingencies (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Commitments and Contingencies
Commitments and Contingencies	14. Commitments and Contingencies In the normal course of business, the Company issues letters of credit primarily to support reinsurance arrangements. These letters of credit are supported by commitments with financial institutions. The Company had $29,764 and $29,617 of letters of credit outstanding as of September 30, 2009 and December31, 2008, respectively. The Company is involved in litigation in the ordinary course of business, both as a defendant and as a plaintiff. The Company may from time to time be subject to a variety of legal and regulatory actions relating to the Companys current and past business operations. While the Company cannot predict the outcome of any pending or future litigation, examination or investigation, and although no assurances can be given, the Company does not believe that any pending matter will have a material adverse effect, individually or in the aggregate, on the Companys financial condition, results of operations, or cash flows. During the three months ended September 30, 2009, the Company recorded a $12,500 charge in the Assurant Health segment related to an unfavorable ruling reached during September 2009 by the South Carolina Supreme Court in a claim-related lawsuit, in the ordinary course, that was originally filed in 2003. The Company is currently pursuing available appellate remedies. One of the Companys subsidiaries, American Reliable Insurance Company (ARIC), participated in certain excess of loss reinsurance programs in the London market and, as a result, reinsured certain personal accident, ransom and kidnap insurance risks from 1995 to 1997. ARIC and a foreign affiliate ceded a portion of these risks to retrocessionaires. ARIC ceased reinsuring such business in 1997. However, certain risks continued beyond 1997 due to the nature of the reinsurance contracts written. ARIC and some of the other reinsurers involved in the programs are seeking to avoid certain treaties on various grounds, including material misrepresentation and non-disclosure by the ceding companies and intermediaries involved in the programs. Similarly, some of the retrocessionaires are seeking avoidance of certain treaties with ARIC and the other reinsurers and some reinsureds are seeking collection of disputed balances under some of the treaties. The disputes generally involve multiple layers of reinsurance, and allegations that the reinsurance programs involved interrelated claims spirals devised to disproportionately pass claims losses to higher-level reinsurance layers. Many of the companies involved in these programs, including ARIC, are currently involved in negotiations, arbitrations and/or litigation, in an effort to resolve these disputes. The disputes involving ARIC and an affiliate, Assurant General Insurance Limited (formerly Bankers Insurance Company Limited) (AGIL), for the 1995 and 1996 program years are subject to working group settlements negotiated with other market participants. Negotiations, arbitrations and litigation are still ongoing with respect to the 1997 program year or will be scheduled for the remaining disputes. As previously disclosed by the Company in a Current Report on Form 8

Subsequent Events

Subsequent Events (Unaudited)
	9 Months Ended Sep. 30, 2009 USD / shares
Subsequent Events
Subsequent Events	15. Subsequent Events The Company evaluated subsequent events through the date the accompanying consolidated financial statements were issued, which was November4, 2009, and determined there were none.