Assurant (AIZ) 10-Q 5 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Thousands, except Share data	3 Months Ended Mar. 31, 2010	May. 03, 2010	Jun. 30, 2009
Document Information [Line Items]
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Entity Information Line Items
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 Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Entity Common Stock, Shares Outstanding		111,826,599
Entity Public Float			$2,825,996

Consolidated Balance Sheet (Una

Consolidated Balance Sheet (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	Dec. 31, 2009
Assets
Fixed maturity securities available for sale, at fair value (amortized cost-$10,081,075 in 2010 and $9,684,083 in 2009)	$10,479,317	$9,966,772
Equity securities available for sale, at fair value (cost- $505,308 in 2010 and $514,349 in 2009)	524,614	512,987
Commercial mortgage loans on real estate, at amortized cost	1,405,876	1,428,027
Policy loans	56,275	56,407
Short-term investments	436,398	453,469
Collateral held under securities lending	142,381	218,129
Other investments	563,727	522,041
Total investments	13,608,588	13,157,832
Cash and cash equivalents	932,541	1,318,552
Premiums and accounts receivable, net	513,820	507,933
Reinsurance recoverables	4,594,661	4,212,863
Accrued investment income	169,258	155,757
Deferred acquisition costs	2,468,246	2,504,654
Property and equipment, at cost less accumulated depreciation	273,270	275,420
Deferred income taxes, net	124,515	167,240
Goodwill	924,834	926,398
Value of business acquired	91,517	94,632
Other assets	545,648	548,183
Assets held in separate accounts	1,991,916	1,972,332
Total assets	26,238,814	25,841,796
Liabilities
Future policy benefits and expenses	7,756,402	7,349,633
Unearned premiums	5,045,536	5,153,564
Claims and benefits payable	3,369,541	3,366,327
Commissions payable	207,073	218,060
Reinsurance balances payable	129,545	95,413
Funds held under reinsurance	50,220	49,417
Deferred gain on disposal of businesses	158,819	164,899
Obligation under securities lending	143,439	220,279
Accounts payable and other liabilities	1,311,375	1,388,279
Taxes payable	121,119	30,126
Debt	972,084	972,058
Mandatorily redeemable preferred stock	8,160	8,160
Liabilities related to separate accounts	1,991,916	1,972,332
Total liabilities	21,265,229	20,988,547
Commitments and contingencies (Note 14)
Stockholders' equity
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 113,584,251 and 116,648,714 shares outstanding at March 31, 2010 and December 31, 2009, respectively	1,451	1,447
Additional paid-in capital	2,964,651	2,962,883
Retained earnings	3,194,101	3,054,466
Accumulated other comprehensive income	154,038	65,925
Treasury stock, at cost; 31,546,462 and 28,119,993 shares at March 31, 2010 and December 31, 2009, respectively.	(1,340,656)	(1,231,472)
Total stockholders' equity	4,973,585	4,853,249
Total liabilities and stockholders' equity	$26,238,814	$25,841,796

Consolidated Balance Sheet Pare

Consolidated Balance Sheet Parentheticals (Unaudited) (USD $)
In Thousands, except Share data	Mar. 31, 2010	Dec. 31, 2009
Consolidated Balance Sheet Parenthetical
Fixed maturity securities, amortized cost	$10,081,075	$9,684,083
Equity securities, cost	$505,308	$514,349
Common stock, par value	0.01	0.01
Common stock, shares authorized	800,000,000	800,000,000
Common stock, shares outstanding	113,584,251	116,648,714
Treasury stock, shares outstanding	31,546,462	28,119,993

Consolidated Statement of Opera

Consolidated Statement of Operations (Unaudited) (USD $)
In Thousands, except Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenues
Net earned premiums and other considerations	$1,906,643	$1,874,579
Net investment income	174,014	178,479
Net realized gains (losses) on investments, excluding other-than-temporary impairment losses	5,318	(30,250)
Total other-than-temporary impairment losses	(906)	(25,439)
Portion of loss recognized in other comprehensive income, before taxes	61
Net other-than-temporary impairment losses recognized in earnings	(845)	(25,439)
Amortization of deferred gain on disposal of businesses	6,081	6,802
Fees and other income	76,645	83,706
Total revenues	2,167,856	2,087,877
Benefits, losses and expenses
Policyholder benefits	927,996	960,342
Amortization of deferred acquisition costs and value of business acquired	405,184	387,794
Underwriting, general and administrative expenses	571,149	566,685
Interest expense	15,161	15,189
Total benefits, losses and expenses	1,919,490	1,930,010
Income before provision for income taxes	248,366	157,867
Provision for income taxes	91,143	77,286
Net income	$157,223	$80,581
Earnings Per Share
Basic	1.35	0.68
Diluted	1.34	0.68
Dividends per share	0.15	0.14
Share Data
Weighted average shares outstanding used in basic per share calculations	116,817,005	117,891,543
Plus: Dilutive securities	377,868	76,204
Weighted average shares used in diluted per share calculations	117,194,873	117,967,747

Consolidated Statement of Share

Consolidated Statement of Shareholders Equity (Unaudited) (USD $)
In Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income	Treasury Stock	Total
Balance at Dec. 31, 2009	$1,447	$2,962,883	$3,054,466	$65,925	($1,231,472)	$4,853,249
Consolidated Statement of Changes in Stockholders' Equity
Stock plan excercises	4	402				406
Stock plan compensation expense		5,294				5,294
Change in tax benefit from share-based payment arrangements		(3,928)				(3,928)
Dividends			(17,588)			(17,588)
Acquisitions of common stock					(109,184)	(109,184)
Comprehensive income:
Net income			157,223			157,223
Other comprehensive income:
Net change in unrealized gains on securities, net of taxes				88,690		88,690
Net change in other-than-temporary impairment gains recognized in other comprehensive income, net of taxes				2,517		2,517
Net change in foreign currency translation, net of taxes				(5,369)		(5,369)
Amortization of pension and postretirement unrecognized net periodic benefit cost, net of taxes				2,275		2,275
Total other comprehensive income						88,113
Total comprehensive income						245,336
Balance at Mar. 31, 2010	$1,451	$2,964,651	$3,194,101	$154,038	($1,340,656)	$4,973,585

1_Consolidated Statement of Sha

Consolidated Statement of Shareholders Equity Parenthetical (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010
Consolidated Statement of Changes in Stockholders' Equity Parenthetical
Net change in unrealized gains on securities, tax	($44,749)
Net change in other-than-temporary impairment gains recognized in other comprehensive income, tax	(1,356)
Net change in foreign currency translation, tax	(3,822)
Amortization of pension and postretirement unrecognized net periodic benefit cost, tax	($1,225)

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Operating activities
Net cash provided by (used in) operating activities	$121,893	($264,569)
Investing activities
Fixed maturity securities available for sale [Sales of]	402,321	176,029
Equity securities available for sale [Sales of]	19,057	16,908
Property and equipment and other [Sales of]	41	137
Maturities, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale	177,900	175,548
Purchases of:
Fixed maturity securities available for sale [Purchase of]	(967,745)	(489,486)
Equity securities available for sale [Purchase of]	(6,326)	(5,677)
Property and equipment and other [Purchase of]	(13,196)	(13,286)
Subsidiary, net of cash transferred [Purchase of]	(1,232)
Change in commercial mortgage loans on real estate	16,124	10,798
Change in short-term investments	17,352	37,572
Change in other invested assets	(28,315)	2,145
Change in policy loans	198	267
Change in collateral held under securities lending	76,840	53,890
Net cash used in investing activities	(306,981)	(35,155)
Financing activities
Repayment of mandatorily redeemable preferred stock		(3,000)
Change in tax benefit from share-based payment arrangements [Financing]	(3,928)	(655)
Acquisition of common stock	(100,339)
Dividends paid	(17,588)	(16,489)
Change in obligation under securities lending	(76,840)	(53,890)
Net cash used in financing activities	(198,695)	(74,034)
Effect of exchange rate changes on cash and cash equivalents	(2,228)	(2,587)
Change in cash and cash equivalents	(386,011)	(376,345)
Cash and cash equivalents at beginning of period	1,318,552	1,040,684
Cash and cash equivalents at end of period	$932,541	$664,339

Nature of Operations

Nature of Operations (Unaudited)
	3 Months Ended Mar. 31, 2010
Nature of Operations
Nature of Operations [Text Block]	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 select worldwide 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)
	3 Months Ended Mar. 31, 2010
Basis of Presentation (Abstract)
Basis of Presentation (Text Block)	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 March 31, 2010 and for the three months ended March 31, 2010 and 2009 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 2010 presentation. Operating results for the three months ended March 31, 2010 are not necessarily indicative of the results that may be expected for the year ending December 31, 2010. 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 December 31, 2009.

Recent Accounting Pronouncement

Recent Accounting Pronouncements (Unaudited)
	3 Months Ended Mar. 31, 2010
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements [Text Block]	3. Recent Accounting Pronouncements Recent Accounting Pronouncements - Adopted On January 1, 2010, the Company adopted the new guidance on transfers of financial assets. This new guidance amends the derecognition guidance and eliminates the exemption for consolidation for qualifying special-purpose entities. The adoption of this new guidance did not have an impact on the Companys financial position or results of operations. On January 1, 2010, the Company adopted the new guidance on the accounting for a variable interest entity (VIE). This new guidance amends the consolidation guidance applicable to VIEs to require a qualitative assessment in the determination of the primary beneficiary of the VIE, to require an ongoing reconsideration of the primary beneficiary, to amend the events that trigger a reassessment of whether an entity is a VIE and to change the consideration of kick-out rights in determining if an entity is a VIE. The adoption of this new guidance did not have an impact on the Companys financial position or results of operations. Recent Accounting Pronouncements - Not Yet Adopted In September 2009, the FASB issued new guidance on multiple deliverable revenue arrangements. This new guidance requires entities to use their best estimate of the selling price of a deliverable within a multiple deliverable revenue arrangement if the entity and other entities do not sell the deliverable separate from the other deliverables within the arrangement. In addition it requires both qualitative and quantitative disclosures. This new guidance will be effective for new or materially modified arrangements in fiscal years beginning on or after June 15, 2010. Earlier application is permitted as of the beginning of a fiscal year. Assuming the Company does not apply the guidance early, the Company is required to adopt this new guidance on January 1, 2011. The Company is currently evaluating the requirements of this new guidance and the potential impact, if any, on the Companys financial position and results of operations.

Investments

Investments (Unaudited)
	3 Months Ended Mar. 31, 2010
Investments [Abstract]
Investments	4. Investments The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and OTTI of our fixed maturity and equity securities as of the dates indicated: March 31, 2010 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI1 Fixed maturity securities: United States Government and government agencies and authorities $ 140,561 $ 5,213 $ (127) $ 145,647 $ States, municipalities and political subdivisions 857,885 41,414 (2,800) 896,499 Foreign governments 580,787 20,479 (3,783) 597,483 Asset-backed 51,221 2,559 (243) 53,537 877 Commercial mortgage-backed 132,443 4,487 (186) 136,744 Residential mortgage-backed 808,337 33,460 (3,022) 838,775 119 Corporate 7,509,841 381,171 (80,380) 7,810,632 12,530 Total fixed maturity securities $ 10,081,075 $ 488,783 $ (90,541) $ 10,479,317 $ 13,526 Equity Securities: Common stocks $ 5,568 $ 286 $ (969) $ 4,885 $ Non-redeemable preferred stocks 499,740 39,066 (19,077) 519,729 Total equity securities $ 505,308 $ 39,352 $ (20,046) $ 524,614 $ December 31, 2009 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value OTTI in AOCI1 Fixed maturity securities: United States Government and government agencies and authorities $ 115,268 $ 5,135 $ (73) $ 120,330 $ States, municipalities and political subdivisions 873,548 42,499 (5,979) 910,068 Foreign governments 558,254 19,352 (4,779) 572,827 Asset-backed 51,834 2,599 (470) 53,963 833 Commercial mortgage-backed 159,780 1,589 (1,462) 159,907 Residential mortgage-backed 685,373 29,224 (2,594) 712,003 123 Corporate 7,240,026 325,646 (127,998) 7,437,674 8,697 Total fixed maturity securities $ 9,684,083 $ 426,044 $ (143,355) $ 9,966,772 $ 9,653 Equity Securities: Common stocks $ 5,493 $ 285 $ (1,249) $ 4,529 $ Non-redeemable preferred stocks 508,856 31,657 (32,055) 508,458 Total equity securities $ 514,349 $ 31,942 $ (33,304) $ 512,987 $ 1 Represents the amount of other-than-temporary impairment gains in AOCI, which, from April 1, 2009, were not included in earnings under the OTTI guidance for debt securities. The cost or amortized cost and fair value of fixed maturity securities at March 31, 2010 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 call or prepayment penalties. Cost or Amortized Cost Fair Value Due in one year or less $ 513,466 $ 524,159 Due after one year thro

Fair Value

Fair Value (Unaudited)
	3 Months Ended Mar. 31, 2010
Fair Value
Fair Value Disclosures [Text Block]	5. Fair Value Disclosures Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. 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 (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, 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 measurement in 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 specific to the asset or liability. The levels of the fair value hierarchy 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. 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. 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. A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The following tables present the Companys fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of March 31, 2010 and December 31, 2009. The amounts presented below for Collateral held under securities lending, Other investments, Cash equivalents, Other assets, Assets held in separate accounts and Other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated f

Income Taxes

Income Taxes (Unaudited)
	3 Months Ended Mar. 31, 2010
Income Taxes
Income Tax Disclosure [Text Block]	6. Income Taxes As of December 31, 2009, the Company had a cumulative valuation allowance of $81,688 against deferred tax assets. During the three months ended March 31, 2010, the Company recognized income tax expense of $3,393 and an income tax benefit through accumulated other comprehensive income of $(108). The valuation allowance related to deferred tax assets was increased by $3,285 primarily due to foreign company net operating losses. It is managements assessment that it is more likely than not that $84,973 of deferred tax assets will not be realized. During First Quarter 2009 the Company recognized $21,000 of income tax expense due to an increase in the valuation allowance related to deferred tax assets primarily related to realized capital losses and other-than-temporary impairments in our investment portfolio. 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)
	3 Months Ended Mar. 31, 2010
Debt[Abstract]
Debt Disclosure [Text Block]	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 March 31, 2010 and 2009, respectively. There was $7,523 of accrued interest at March 31, 2010 and 2009, respectively. The Company made interest payments of $30,094 on February 15, 2010 and 2009. Credit Facility In March 2004 the Board authorized a $500,000 commercial paper program, to be used for working capital and other general corporate purposes. The Companys commercial paper program requires the Company to maintain liquidity facilities either in an available amount equal to any outstanding notes from the commercial paper program or in an amount sufficient to maintain the ratings assigned to the notes issued from the commercial paper program. The Companys subsidiaries do not maintain commercial paper or other borrowing facilities at their level. Prior to December 18, 2009 this program was backed up by a $500,000 senior revolving credit facility (2004 Credit Facility). This program is currently backed up by a $350,000 senior revolving credit facility, described below, of which $325,604 was available at March 31, 2010, due to outstanding letters of credit. On December 18, 2009, the Company entered into a three-year unsecured revolving credit agreement (2009 Credit Facility) with a syndicate of banks arranged by JP Morgan Chase Bank, Inc. and Bank of America, Inc. The 2009 Credit Facility replaces the Companys prior five-year $500,000 revolving credit facility 2004 Credit Facility. The 2009 Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and/or letters of credit from a sole issuing bank in an aggregate amount of $350,000 and is available until December 2012, provided the Company is in compliance with all covenants. The agreement has a sublimit for letters of credit issued under the agreement of $50,000. The proceeds of these loans may be used for the Companys commercial paper program or for general corporate purposes. The Company did not use the commercial paper program during the three months ended March 31, 2010 and 2009 and there were no amounts relating to the commercial paper program outstanding at March 31, 2010 and December 31, 2009. The Company did not borrow using the 2004 Credit Facility during the three months ended March 31, 2009. The Company made no borrowings using the 2009 Credit Facility and no loans are outstanding at March 31, 2010. The Company does have $24,396 of letters of credit outstanding under the 2009 Credit Facility as of March 31, 2010. The 2009 Credit Facility contains restrictive covenants. The terms of the 2009 Credit Facility also require that the Company maintain certain specified minimum ratios and thresholds. Among others,

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Unaudited)
	3 Months Ended Mar. 31, 2010
Accumulated Other Comprehensive Income (Loss)[Abstract]
Accumulated Other Comprehensive Income (Loss)	8. Accumulated Other Comprehensive Income The components of accumulated other comprehensive income, net of tax, at March 31, 2010 are as follows: Foreign currency translation adjustment Unrealized gains on securities OTTI Pension under- funding Accumulated other comprehensive income Balance at December 31, 2009 $ 23,912 $ 194,550 $ 6,275 $ (158,812) $ 65,925 Activity in 2010 (5,369) 88,690 2,517 2,275 88,113 Balance at March 31, 2010 $ 18,543 $ 283,240 $ 8,792 $ (156,537) $ 154,038 The amounts in the unrealized gains on securities column are net of reclassification adjustments of $6,803, net of tax, for the three months ended March 31, 2010, for net realized gains (losses) on sales of securities included in net income. The amounts in the OTTI column are net of reclassification adjustments of $(322), net of tax, for the three months ended March 31, 2010, for net realized gains (losses) on sales of securities included in net income.

Stock Based Compensation

Stock Based Compensation (Unaudited)
	3 Months Ended Mar. 31, 2010
Stock Based Compensation (Abstract)
Stock Based Compensation (Text Block)	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 awarded under the ALTEIP. The Compensation Committee of the Board of Directors (the Compensation Committee) awarded PSUs and RSUs in 2010 and 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, and 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 established earnings per share (EPS) growth, revenue growth and total stockholder return as the three performance measures for PSU awards. EPS 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. For 2010, in light of the significant volatility in EPS across the financial services sector, and in response to comments from our investors, the Committee decided to replace growth in EPS with growth in book value per diluted share (BVPS) excluding AOCI as a performance metric. BVPS growth is defined as year-over-year growth of the Companys common equity divided by the period ending fully diluted total shares outstanding. The Company believes this change will provide a more consistent basis for comparing the Companys long-term financial performance to that of our competitors. The other metrics (

Stock Repurchase

Stock Repurchase (Unaudited)
	3 Months Ended Mar. 31, 2010
Stock Repurchase [Abstract]
Stock Repurchase [Text Block]	10. Stock Repurchase The following table shows the shares repurchased during the periods indicated: Period in 2010 Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Programs January $ $ $ February 1,304,915 30.46 1,304,915 March 2,121,554 32.73 2,121,554 Total $ 3,426,469 $ 31.86 $ 3,426,469 On November 10, 2006, the Companys Board of Directors authorized the Company to repurchase up to $600,000 of its outstanding common stock. On January 22, 2010, the Companys Board of Directors authorized the Company to repurchase up to an additional $600,000 of its outstanding common stock. During the three months ended March 31, 2010, the Company repurchased 3,426,469 shares of the Companys outstanding common stock at a cost of $109,184 and as of March 31, 2010, could repurchase up to $660,860 of additional outstanding common stock under the total repurchase authorization.

Earnings Per Share

Earnings Per Share (Unaudited)
	3 Months Ended Mar. 31, 2010
Earnings Per Share
Earnings Per Share [Text Block]	11. Earnings Per Common Share The following table presents net income, the weighted average common shares used in calculating basic earnings per common share (EPS) and those used in calculating diluted earnings per common share for each period presented below. Three Months Ended March 31, 2010 2009 Numerator Net income $ 157,223 $ 80,581 Deduct dividends paid (17,588) (16,489) Undistributed earnings $ 139,635 $ 64,092 Denominator Weighted average shares outstanding used in basic earnings per share calculations 116,817,005 117,891,543 Incremental common shares from: SARs 158,169 59,801 PSUs 217,429 16,403 ESPP 2,270 Weighted average shares used in diluted earnings per share calculations 117,194,873 117,967,747 Earnings per common share - Basic Distributed earnings $ 0.15 $ 0.14 Undistributed earnings 1.20 0.54 Net income $ 1.35 $ 0.68 Earnings per common share Diluted Distributed earnings $ 0.15 $ 0.14 Undistributed earnings 1.19 0.54 Net income $ 1.34 $ 0.68 Average SARs totaling 3,770,081 and 4,874,288 for the three months ended March 31, 2010 and 2009, 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)
	3 Months Ended Mar. 31, 2010
Retirement and Other Employee Benefits
Pension and Other Postretirement Benefits Disclosure [Text Block]	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 months ended March 31, 2010 and 2009 were as follows: Qualified Pension Benefits Nonqualified Pension Benefits1 Retirement Health Benefits For the Three Months Ended March 31, For the Three Months Ended March 31, For the Three Months Ended March 31, 2010 2009 2010 2009 2010 2009 Service cost $ 6,225 $ 5,450 $ 550 $ 550 $ 950 $ 675 Interest cost 7,875 7,350 1,550 1,600 1,150 1,050 Expected return on plan assets (9,250) (8,800) (625) (475) Amortization of prior service cost 25 100 225 150 375 325 Amortization of net loss (gain) 2,400 125 475 275 (50) Curtailment credit/special termination benefits (549) Net periodic benefit cost $ 7,275 $ 4,225 $ 2,800 $ 2,026 $ 1,850 $ 1,525 1The Companys nonqualified plan is unfunded. During the first three months of 2010, $10,000 in cash was contributed to the qualified pension benefits plan (Plan). An additional $30,000 in cash is expected to be contributed to the Plan over the remainder of 2010.

Segment Information

Segment Information (Unaudited)
	3 Months Ended Mar. 31, 2010
Segment Information
Schedule of Segment Reporting Information, by Segment [Text Block]	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 segments based on segment income (loss) after-tax 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 March 31, 2010 Solutions Specialty Property Health Employee Benefits Corporate Other Consolidated Revenues Net earned premiums and other considerations $ 645,364 $ 508,822 $ 467,442 $ 285,015 $ $ 1,906,643 Net investment income 98,453 26,921 11,565 32,810 4,265 174,014 Net realized gains on investments 4,473 4,473 Amortization of deferred gain on disposal of businesses 6,081 6,081 Fees and other income 45,712 13,100 10,408 7,311 114 76,645 Total revenues 789,529 548,843 489,415 325,136 14,933 2,167,856 Benefits, losses and expenses Policyholder benefits 227,631 162,533 333,640 204,242 (50) 927,996 Amortization of deferred acquisition costs and value of business acquired 293,703 100,531 1,635 9,315 405,184 Underwriting, general and administrative expenses 217,387 106,486 141,484 86,607 19,185 571,149 Interest expense 15,161 15,161 Total benefits, losses and expenses 738,721 369,550 476,759 300,164 34,296 1,919,490 Segment income (loss) before provision (benefit) for income tax 50,808 179,293 12,656 24,972 (19,363) 248,366 Provision (benefit) for income taxes 21,942 60

Commitments and Contingencies

Commitments and Contingencies (Unaudited)
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies
Commitments and Contingencies Disclosure [Text Block]	14. Commitments and Contingencies In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements. These letters of credit are supported by commitments with financial institutions. The Company had $28,332 and $28,566 of letters of credit outstanding as of March 31, 2010 and December 31, 2009, 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. The Company held a $14,650 litigation reserve as of December 31, 2009 as a result of an unfavorable ruling in September 2009 by the South Carolina Supreme Court in an ordinary course claim-related lawsuit originally filed in 2003. The Company recently agreed with the plaintiff for a payment of $14,850 to resolve the matter. The Company holds a litigation reserve of $37,302 due to an unfavorable jury verdict in an ordinary course rescission-related lawsuit that was originally filed in 2006. The verdict is subject to post-trial motions, some of which remain outstanding. A judgment has not yet been entered by the court. The Company intends to pursue all available post-trial motions and appellate remedies. Both of the above-noted litigation matters relate to our Assurant Health segment. 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 disputes that arose regarding these programs remain outstanding. 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 or will be scheduled for the remaining disputes. The Company believes, on the basis of information currently available, that the existing loss accruals for remaining arbitrations and lawsuits are adequate. How

Subsequent Events

Subsequent Events (Unaudited)
	3 Months Ended Mar. 31, 2010
Subsequent Events
Schedule of Subsequent Events [Text Block]	15. Subsequent Events On April 27, 2010, certain of the Company's subsidiaries entered into reinsurance agreements providing for $150,000 in multi-year, fully collateralized reinsurance from Ibis Re Ltd. (Ibis Re), a non-consolidated special purpose reinsurance company domiciled in the Cayman Islands. Ibis Re financed the property catastrophe reinsurance coverage by issuing $150,000 in catastrophe bonds to qualified institutional buyers. As a component of the Companys overall risk management programs, the reinsurance consists of two separate layers of coverage for protection against losses from individual hurricane events in Hawaii and along the Gulf and Eastern Coasts of the United States.