4Q 2015 Net Operating Income of $65.3
million, $0.97 per diluted share
Full-Year 2015 Net Operating Income of
$454.4 million, $6.58 per diluted share
4Q 2015 Net Income of $65.7 million, $0.97
per diluted share
Full-Year 2015 Net Income of $141.6 million,
$2.05 per diluted share
- 11.3 percent annual operating ROE,
excluding AOCI1
- $379 million returned to shareholders
through dividends and share repurchases in 2015
- $460 million in corporate capital at
year-end
Assurant, Inc. (NYSE:AIZ), a premier provider of specialty
protection products and related services, today reported results
for fourth quarter and full-year ended Dec. 31, 2015.
“Assurant made significant strides in 2015 as we realigned our
business portfolio and evolved our organizational framework to
support sustainable long-term, profitable growth,” said Assurant
President and CEO Alan B. Colberg.
“While fourth quarter results were disappointing and fell short
of our expectations, we believe our transformation strategy will
improve results and drive shareholder value. We are focusing
resources and investments in targeted markets and increasing
operating efficiency across the company as we continue to return
capital to shareholders,” Colberg added.
Reconciliation of Net Operating Income to Net Income
Beginning in second quarter 2015, Assurant revised its
presentation of results to reflect the company’s previously
announced strategic realignment to focus on specialty housing and
lifestyle protection products and services. As the company
continues to wind down its health insurance business, Assurant
Health results have been removed from net operating income and now
are reflected in net income as runoff operations. Prior period
amounts have been revised to conform to the updated presentation.
In the third quarter, the company announced the sale of Assurant
Employee Benefits. Assurant will continue to report this business
under operating results until the sale of the business is closed,
which is expected to occur by the end of first quarter 2016.
(UNAUDITED) 4Q
4Q 12 Months 12
Months (dollars in millions, net of tax)
2015 2014
2015 2014 Housing and Lifestyle
Assurant Solutions $ 29.6
$ 58.1 $ 197.2
$ 218.9 Assurant Specialty Property 57.8 71.0
307.7 341.8
Subtotal
87.4 129.1 504.9
560.7 Assurant Employee Benefits 15.5 7.2 47.3 48.7
Corporate and other (30.7 ) (19.4 ) (70.4 ) (67.7 ) Amortization of
deferred gain on disposal of businesses 2.1 (8.1 ) 8.4 (1.0 )
Interest expense (9.0 ) (9.0 ) (35.8 )
(37.9 )
Net operating income 65.3 99.8
454.4 502.8
Adjustments: Assurant Health runoff operations (a)
(15.8 ) (36.8 ) (367.9 ) (63.7 ) Net realized gains on investments
6.3 11.3 20.8 39.4 Gain (loss) on divested business 10.0 (19.4 )
10.7 (19.4 ) Change in tax liabilities - (6.8 ) 16.0 14.0 Payment
received related to previous sale of subsidiary - - 9.9 - Change in
derivative investment (0.1 ) 1.7 (2.3 )
(2.2 )
Net income $ 65.7 $ 49.8 $ 141.6
$ 470.9
(a) Assurant Health runoff operations include results for the
total segment, including major medical operations and portions of
the business that Assurant sold to National General Holdings Corp.
on Oct. 1, 2015.
Note: Additional financial information, including a schedule of
disclosed items that affected Assurant’s results by business for
the last eight quarters appears on page 21 of the company’s
Financial Supplement, and is located in the Investor Relations
section of www.assurant.com.
Fourth Quarter 2015 Consolidated Results
- Net operating income2 decreased
to $65.3 million, or $0.97 per diluted share, compared to fourth
quarter 2014 net operating income of $99.8 million, or $1.38 per
diluted share. The decrease primarily reflects lower contributions
from the mobile business at Assurant Solutions and ongoing
normalization of lender-placed insurance business at Assurant
Specialty Property.
- Net income increased to $65.7
million, or $0.97 per diluted share, compared to fourth quarter
2014 net income of $49.8 million, or $0.69 per diluted share.
Results primarily benefited from a $10.0 million gain from the
fourth quarter sale of an Assurant Specialty Property legacy auto
title business, compared to a $19.4 million net loss on the sale of
Assurant Specialty Property’s general agency business and
associated insurance carrier, American Reliable Insurance Company
(ARIC), recognized in fourth quarter 2014.
- Net earned premiums, fees and other
income, excluding Assurant Health runoff operations, decreased
to $1.9 billion, compared to $2.0 billion in fourth quarter 2014.
The decline reflects the divestiture of ARIC, the ongoing
normalization of lender-placed insurance business, the loss of
business from an Assurant Specialty Property client and the effect
of foreign exchange volatility at Assurant Solutions. Fee income
increased to $376.3 million, compared to $304.7 million in fourth
quarter 2014, driven by expanded service offerings in mobile and
mortgage solutions.
- Net investment income, excluding
Assurant Health runoff operations, totaled $152.8 million, compared
to $151.0 million in fourth quarter 2014.
Full-Year 2015 Consolidated Results
- Net operating income decreased
to $454.4 million, or $6.58 per diluted share, compared to $502.8
million, or $6.87 per diluted share in 2014, primarily due to the
factors noted above.
- Net income decreased to $141.6
million, or $2.05 per diluted share, compared to $470.9 million, or
$6.44 per diluted share in 2014, reflecting increased claims from
Affordable Care Act (ACA) qualified policies and charges associated
with the wind down of the Assurant Health business including an
accrual for premium deficiency reserves.
- Net earned premiums, fees and other
income, excluding Assurant Health runoff operations, were $7.4
billion, down 4.0 percent compared to $7.7 billion in 2014. The
divestiture of ARIC, the ongoing normalization of lender-placed
insurance business as well as the loss of business from an Assurant
Specialty Property client and the effect of foreign exchange
volatility at Assurant Solutions reduced premiums. Fee income
increased to $1.2 billion, compared to $1.0 billion in 2014, due to
the expansion of mobile programs and the mortgage solutions
business.
- Net investment income, excluding
Assurant Health runoff operations, decreased to $601.7 million from
$621.1 million in 2014, due to lower investment yields and invested
assets.
Housing and Lifestyle
Assurant Solutions
(in millions)
4Q15 4Q14
% Change 12M15
12M14 % Change Net operating
income $ 29.6 $ 58.1 (49)% $ 197.2 $ 218.9 (10)%
Net earned
premiums, fees and other $ 1,003.2 $
1,000.0 0% $ 3,801.5 $
3,796.7 0%
- Net operating income decreased
compared to fourth quarter 2014, primarily due to lower
contributions from mobile, including the previously disclosed loss
of a domestic tablet program and higher operating expenses to
support existing programs and expected program launches. Results
also were negatively affected by foreign exchange losses and
approximately $8 million of prior-period accounting adjustments,
partially offset by a decrease in legal reserves related to an
outstanding matter.Full-year 2015 net operating income, excluding
disclosed items, decreased compared to 2014, primarily due to lower
service contract volumes from North American retail clients and the
loss of the domestic tablet program.
- Net earned premiums, fees and other
income were flat in the quarter and full-year 2015, compared to
the same periods in 2014. Growth in fee income from domestic mobile
and the auto warranty business were offset by the effect of foreign
exchange volatility, loss of the domestic tablet program and
declines in credit insurance and lower service contract production
from North American retailers.
- Domestic combined ratio
increased to 100.1 percent, compared to 92.9 percent in fourth
quarter 2014, reflecting lower contributions from mobile.For
full-year 2015, the domestic combined ratio increased to 95.1
percent, compared to 93.5 percent in 2014. Results reflect lower
service contract premiums from North American retailers as well as
lower contributions from credit insurance and mobile
businesses.
- International combined ratio
improved to 101.4 percent, compared to 103.4 percent in fourth
quarter 2014, primarily due to the decrease in the legal reserves
noted above.For full-year 2015, the international combined ratio
increased to 102.8 percent, compared to 101.5 percent in 2014.
Results primarily reflect revenue declines and shifts in the mix of
business.
Assurant Specialty Property
(in millions)
4Q15
4Q14 % Change
12M15 12M14 %
Change Net operating income $ 57.8 $ 71.0 (19)% $ 307.7
$ 341.8 (10)%
Net earned premiums, fees and other $
601.7 $ 686.5 (12)% $
2,450.2 $ 2,807.1 (13)%
Note: In fourth quarter 2014, ARIC accounted for net earned
premiums, fees and other income and net operating income of $62.3
million and $6.4 million, respectively. For the 12 months ended
2014, ARIC accounted for net earned premiums, fees and other income
and net operating income of $249.3 million and $12.1 million,
respectively. This divested business did not contribute to 2015
results.
- Net operating income decreased
in fourth quarter and full-year 2015, compared to the same periods
in 2014, primarily due to the ongoing normalization of
lender-placed insurance, including the previously disclosed loss of
client business as well as increased legal expenses. More favorable
non-catastrophe loss experience and lower catastrophe reinsurance
costs partially offset the decline.Fourth quarter 2015 results
include $9.8 million in reportable catastrophes, compared to no
reportable catastrophe losses in fourth quarter 2014. Full-year
2015 results include $19.3 million in reportable catastrophe
losses, compared to $18.5 million in 2014.
- Net earned premiums, fees and other
income decreased in the quarter and for the full year, compared
to the same periods in 2014. Net earned premiums decreased
primarily due to the divestiture of ARIC and the ongoing
normalization of lender-placed insurance, including the loss of
client business. Fee income increased in the quarter and in
full-year 2015, primarily reflecting organic growth from the
mortgage solutions business.
- Combined ratio increased in the
quarter to 90.0 percent, compared to 87.8 percent in fourth quarter
2014, primarily due to lower lender-placed insurance net earned
premiums and an increase in expenses related to outstanding legal
matters. Lower frequency and severity of non-catastrophe losses
partially offset the increase.For full-year 2015, the combined
ratio was 84.9 percent, compared to 85.2 percent in 2014. Results
reflect lower non-catastrophe claims, partially offset by lower
lender-placed insurance revenue and higher mix of fee-based
businesses.
Employee Benefits
As announced on Sept. 9, 2015, Assurant entered into a
definitive agreement to sell Assurant Employee Benefits to Sun Life
Assurance Company of Canada, the wholly-owned subsidiary of Sun
Life Financial Inc., for $940 million in cash. The transaction is
expected to close by the end of first quarter 2016.
Assurant Employee Benefits
(in millions)
4Q15
4Q14 % Change
12M15 12M14 %
Change Net operating income $ 15.5 $ 7.2 114% $ 47.3 $
48.7 (3)%
Net earned premiums, fees and other $ 270.8
$ 269.4 1% $ 1,091.8
$ 1,075.9 2%
- Net operating income increased
in the quarter, primarily due to favorable disability and life
experience.Full-year 2015 net operating income declined, compared
to 2014, primarily due to less favorable life experience.
- Net earned premiums, fees and other
income increased slightly in fourth quarter and full-year 2015,
primarily due to continued growth in voluntary products.
- Sales increased in the quarter
and full year 2015. Results reflect continued growth in voluntary
products sales.
Corporate & Other
(in millions)
4Q15
4Q14 % Change
12M15 12M14 %
Change Net operating loss $ (30.7)
$ (19.4) (58)% $ (70.4) $
(67.7) (4)%
- Net operating loss increased in
the fourth quarter, primarily reflecting a partial reversal of
prior quarter tax benefits as well as severance and other expenses
related to Assurant’s strategic realignment.For full-year 2015, net
operating loss increased, primarily reflecting severance and other
expenses related to Assurant’s strategic realignment.
Assurant Health Runoff Operations
The company announced on June 10, 2015 that it was beginning the
process to exit the health business, following a review of
strategic options for Assurant Health. Related to these plans, the
company established a premium deficiency reserve accrual in 2015
for claims and direct expenses on ACA-qualified policies. The
company completed the sale of Assurant Health's supplemental and
small group self-funded product lines and certain other assets to
National General Holdings Corp. on Oct. 1, 2015 for $14
million.
Assurant Health
(in millions)
4Q15
4Q14 % Change
12M15 12M14 %
Change Net loss $ (15.8) $
(36.8) 57% $ (367.9) $
(63.7) (477)%
- Net loss in fourth quarter
primarily reflects $11.2 million after-tax of severance and other
exit-related costs as well as indirect expenses not included in the
previously established premium deficiency reserves. Actual
operating losses were in line with the premium deficiency accrual
estimate established in third quarter 2015.Full-year 2015 results,
compared to 2014, reflect unfavorable loss experience on
ACA-qualified policies and charges related to the company’s exit of
the health insurance market.
- ACA risk-mitigation payments
received from the Centers for Medicare and Medicaid Services as of
Dec. 31, 2015 for 2014 ACA-qualified policies totaled a net $351.8
million with no further remaining receivables accrued for 2014
policies.As of Dec. 31, 2015, ACA risk-mitigation estimated
recoverables for 2015 ACA-qualified policies totaled $521.6
million, reflecting $225.2 million from the risk-adjustment program
and $296.4 million from the reinsurance program. The company did
not record any net recoverables for the 2015 risk-corridors
program.
Capital Position
- Corporate capital approximated
$460 million as of Dec. 31, 2015. Adjusting for the company’s $250
million risk buffer, deployable capital totaled $210 million.During
the quarter, operating business segments, consisting of Assurant
Solutions, Assurant Specialty Property, and Assurant Employee
Benefits, paid approximately $262 million of dividends to the
holding company. Excluding proceeds from the sale of certain assets
to National General, the company infused approximately $260 million
into Assurant Health to ensure adequate levels of statutory surplus
and to fund estimated exit-related charges and claims through the
wind-down process.For full-year 2015, operating business segments
paid approximately $675 million of dividends net of infusions to
the holding company. Excluding proceeds from the sale of certain
assets to National General, the company infused approximately $500
million into Assurant Health to ensure adequate levels of statutory
surplus and to fund estimated exit-related charges and claims,
through the wind-down process.
- Share repurchases and dividends
totaled $107.5 million in fourth quarter 2015. Dividends to
shareholders totaled $33.3 million, and Assurant repurchased
approximately 925,000 shares of common stock for $74.2 million.For
full-year 2015, share repurchases and dividends totaled $378.8
million. Dividends to shareholders totaled $94.2 million, and
Assurant repurchased approximately 4.2 million shares of common
stock for $284.6 million. Through Feb. 5, 2016, the company
repurchased an additional 1.1 million shares for $90.0 million,
with $862.1 million remaining in the current repurchase
authorization.
Financial Position
- Stockholders’ equity, excluding
accumulated other comprehensive income (AOCI), decreased to $4.4
billion at Dec. 31, 2015, down $220.1 million since Dec. 31, 2014
due to share repurchases and dividends.
- Annual operating return on average
equity (ROE)1, excluding AOCI and Assurant Health runoff
operations, was 11.3 percent for 2015 compared to 12.1 percent for
2014.
- Total assets, as of Dec. 31,
2015, were approximately $30.1 billion.
- Ratio of debt to total capital3,
excluding AOCI and Assurant Health runoff operations, increased to
23.4 percent at Dec. 31, 2015 from 21.9 percent at Dec. 31,
2014.
Company Outlook
Based on current market conditions, for full-year 2016, the
company expects:
- Assurant Solutions’ net earned
premiums and fees and net operating income to increase from 2015
levels. Overall results expected to improve in the second half of
the year driven by new mobile programs, improved international
profitability and additional expense initiatives. Results to be
affected by foreign exchange volatility, lower service contract
revenue from legacy North American retail clients and continued
declines in credit insurance.
- Assurant Specialty Property’s
net earned premiums and net operating income to decrease from 2015
levels. Results to be affected by the ongoing normalization of
lender-placed insurance business partially offset by increased
efficiencies and expense savings initiatives. Multi-family housing
and mortgage solutions businesses to expand via market share gains.
Overall results to be affected by catastrophe losses.
- Capital to be deployed through a
combination of share repurchases, common stock dividends,
reinvestments in the business and acquisitions in Housing and
Lifestyle, subject to market conditions and other factors. Business
segment dividends from Assurant Solutions and Assurant Specialty
Property to approximate segment net operating income, subject to
the growth of the businesses, rating agency and regulatory capital
requirements. Sale of Assurant Employee Benefits to provide
approximately $1 billion of net proceeds, including capital
releases.
- Corporate & Other full-year
net operating loss to approximate $70 million. Expense savings
actions to offset residual expenses associated with Assurant
Employee Benefits and Assurant Health.
Based on the announced exit from the health insurance market,
the company expects:
- Assurant Health to substantially
complete the process to exit the health insurance market in 2016.
During the remainder of the wind down, the company to incur up to
$40 to $50 million pre-tax of additional exit-related charges, as
well as certain overhead expenses that are excluded from the
premium deficiency reserve accrual. Assurant Health dividends
expected to approximate $475 million, subject to ultimate
development of claims, actual expenses needed to wind down
operations, recoveries from ACA-risk mitigation payments and
regulatory approval.
Earnings Conference Call
- The fourth quarter 2015 earnings
conference call and webcast to be held on Feb. 10, 2016 at 8:00
a.m. ET. The live and archived webcast along with supplemental
information will be available in the Investor Relations section of
www.assurant.com.
About Assurant
A global provider of specialty protection products and related
services, Assurant (NYSE: AIZ) safeguards clients and consumers
against risk. A Fortune 500 company, Assurant partners with clients
who are leaders in their industries to provide consumers peace of
mind and financial security. Our diverse range of products and
services includes: mobile device protection products and services;
extended service products and related services for consumer
electronics, appliances and vehicles; pre-funded funeral insurance;
lender-placed homeowners insurance; property preservation and
valuation services; flood insurance; renters insurance and related
products; debt protection administration; credit insurance;
manufactured housing homeowners insurance; group dental insurance;
group disability insurance; and group life insurance.
With approximately $30 billion in assets and $8 billion in
annual revenue, Assurant provides its specialty protection
offerings primarily through Assurant Solutions, Assurant Specialty
Property, and Assurant Employee Benefits. Through the Assurant
Foundation, established more than 30 years ago, the company and its
employees are dedicated to supporting and partnering with
organizations that improve communities. Visit www.assurant.com and
follow us on Twitter @AssurantNews.
Safe Harbor Statement
Some of the statements included in this news release and its
exhibits, particularly those anticipating future financial
performance, business prospects, growth and operating strategies
and similar matters, are forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these statements by the use of words such as
“will,” “may,” “anticipates,” “expects,” “estimates,” “projects,”
“intends,” “plans,” “believes,” “targets,” “forecasts,”
“potential,” “approximately,” or the negative version of those
words and other words and terms with a similar meaning. Any
forward-looking statements contained in this news release or its
exhibits are based upon our historical performance and on current
plans, estimates and expectations. The inclusion of this
forward-looking information should not be regarded as a
representation by us or any other person that the future plans,
estimates or expectations contemplated by us will be achieved. Our
actual results might differ materially from those projected in the
forward-looking statements. The company undertakes no obligation to
update or review any forward-looking statements in this news
release or the exhibits, whether as a result of new information,
future events or other developments. The following risk factors
could cause our actual results to differ materially from those
currently estimated by management, including those projected in the
company outlook:
(i) actions by governmental agencies or government
sponsored entities or other circumstances, including pending
regulatory matters affecting our lender-placed insurance business,
that could result in reductions of premium rates or increases in
expenses, including claims, fines, penalties or other expenses;
(ii) inability to implement, or delays in implementing, strategic
plans for the Assurant Employee Benefits and Assurant Health
segments; (iii) loss of significant client relationships or
business, distribution sources or contracts and reliance on a few
clients; (iv)
the effects of the Patient Protection and
Affordable Care Act and the Health Care and Education
Reconciliation Act of 2010 (the "Affordable Care Act"), and the
rules and regulations thereunder, on our health and employee
benefits businesses; potential variations between the final risk
adjustment amount and reinsurance amounts, as determined by the
U.S. Department of Health and Human Services under the Affordable
Care Act, and the company's estimate;
(v) unfavorable outcomes in litigation and/or regulatory
investigations that could negatively affect our results, business
and reputation; (vi) inability to execute strategic plans related
to acquisitions, dispositions or new ventures; (vii) failure to
adequately predict or manage benefits, claims and other costs;
(viii) inadequacy of reserves established for future claims; (ix)
current or new laws and regulations that could increase our costs
and decrease our revenues; (x) significant competitive pressures in
our businesses; (xi) failure to attract and retain sales
representatives, key managers, agents or brokers; (xii) losses due
to natural or man-made catastrophes; (xiii) a decline in our credit
or financial strength ratings (including the risk of ratings
downgrades in the insurance industry); (xiv) deterioration in the
company’s market capitalization compared to its book value that
could result in an impairment of goodwill; (xv) risks related to
our international operations, including fluctuations in exchange
rates; (xvi) data breaches compromising client information and
privacy; (xvii) general global economic, financial market and
political conditions (including difficult conditions in financial,
capital, credit and currency markets, the global economic slowdown,
fluctuations in interest rates or a prolonged period of low
interest rates, monetary policies, unemployment and inflationary
pressure); (xviii) cyber security threats and cyber attacks; (xix)
failure to effectively maintain and modernize our information
systems; (xx) uncertain tax positions and unexpected tax
liabilities; (xxi) risks related to outsourcing activities; (xxii)
unavailability, inadequacy and unaffordable pricing of reinsurance
coverage; (xxiii) diminished value of invested assets in our
investment portfolio (due to, among other things, volatility in
financial markets; the global economic slowdown; credit, currency
and liquidity risk; other than temporary impairments and increases
in interest rates); (xxiv) insolvency of third parties to whom we
have sold or may sell businesses through reinsurance or modified
co-insurance; (xxv) inability of reinsurers to meet their
obligations; (xxvi) credit risk of some of our agents in Assurant
Specialty Property and Assurant Solutions; (xxvii) inability of our
subsidiaries to pay sufficient dividends; (xxviii) failure to
provide for succession of senior management and key executives; and
(xxix)
cyclicality of the insurance industry.
For a detailed discussion of the risk factors that could affect
our actual results, please refer to the risk factors identified in
our SEC reports, including, but not limited to our 2014 Annual
Report on Form 10-K and 2015 First Quarter, Second Quarter and
Third Quarter Quarterly Reports on Form 10-Q, as filed with the
SEC.
Non-GAAP Financial Measures
Assurant uses the following non-GAAP financial measures to
analyze the company’s operating performance for the periods
presented in this news release. Because Assurant’s calculation of
these measures may differ from similar measures used by other
companies, investors should be careful when comparing Assurant’s
non-GAAP financial measures to those of other companies.
(1) Assurant uses operating ROE, excluding AOCI and Assurant
Health runoff operations, as an important measure of the company’s
operating performance. Operating ROE equals net operating income
for the periods presented divided by average stockholders’ equity
for the year-to-date period, excluding AOCI and Assurant Health
runoff operations. The company believes operating ROE, excluding
AOCI and Assurant Health runoff operations, provides investors a
valuable measure of the performance of the company’s ongoing
business, because it excludes the effect of net realized gains
(losses) on investments that tend to be highly variable from
period-to-period, other AOCI items, Assurant Health runoff
operations and those events that are unusual and/or unlikely to
recur. The comparable GAAP measure would be GAAP ROE, defined as
net income, for the periods presented, divided by average
stockholders’ equity for the year-to-date period. GAAP ROE for the
12 months ended Dec. 31, 2015 and 12 months ended Dec. 31, 2014 was
2.9 percent and 9.4 percent, respectively, as shown in the
following reconciliation table.
12 Months
12 Months 2015
2014 Annual operating return on average equity (excluding
AOCI and Assurant Health runoff operations) 11 .3% 12 .1%
Assurant Health runoff operations (9 .2)% (1 .5)% Net realized
gains on investments 0 .5% 1 .0% Gain (loss) on divested business 0
.3% (0 .5)% Change in tax liabilities 0 .4% 0 .3% Payment received
related to previous sale of subsidiary 0 .2% - Change in derivative
investment (0 .1)% (0 .1)% Change due to effect of including AOCI
(0 .5)% (1 .9)%
Annual GAAP return on average
equity 2 .9% 9 .4% (2)
Assurant uses net operating income as an
important measure of the company’s operating performance. As shown
in the net operating income reconciliation table, net operating
income equals net income, excluding net realized gains (losses) on
investments, other unusual and/or infrequent items and Assurant
Health runoff operations. The company believes net operating income
provides investors a valuable measure of the performance of the
company’s ongoing business, because it excludes the effect of net
realized gains (losses) on investments that tend to be highly
variable from period-to-period, those events that are unusual
and/or unlikely to recur and Assurant Health runoff operations.
Please refer to page 2 of this release for a reconciliation of net
operating income to net income.
(3) Assurant uses a ratio of debt to total capital,
excluding AOCI and Assurant Health runoff operations, as an
important measure of the company’s financial leverage. Assurant’s
debt to total capital ratio, excluding AOCI and Assurant Health
runoff operations, equals debt divided by the sum of debt and total
stockholders’ equity excluding AOCI and Assurant Health runoff
operations. The company believes that the debt to total capital
ratio, excluding AOCI and Assurant Health runoff operations,
provides investors a valuable measure of financial leverage,
because it excludes the effect of unrealized gains (losses) on
investments, which tend to be highly variable from
period-to-period, other AOCI items and Assurant Health runoff
operations. The comparable GAAP measure would be the ratio of debt
to total capital. The debt to total capital ratio as of Dec. 31,
2015 and Dec. 31, 2014 was 20.6 percent and 18.4 percent,
respectively, as shown in the following reconciliation table.
4Q 4Q 2015
2014 Debt to total capital ratio (excluding AOCI
and Assurant Health runoff operations) 23.4 % 21.9 % Change due
to effect of including AOCI (0.4 )% (1.8 )% Change due to effect of
including Assurant Health runoff operations (2.4 )%
(1.7 )%
Debt to total capital ratio 20.6 %
18.4 %
A summary of net operating income disclosed items is included on
page 21 of the company’s Financial Supplement, which is available
in the Investor Relations section of www.assurant.com.
Assurant, Inc. Consolidated
Statement of Operations (unaudited) Three and 12 Months
Ended Dec. 31, 2015 and 2014 4Q 12 Months
2015 2014 2015
2014 (in thousands except number of shares and per share
amounts) Revenues Net earned premiums $
1,994,756 $ 2,142,137 $ 8,350,997 $ 8,632,142 Fees and other income
382,772 316,955 1,303,466 1,033,805 Net investment income 157,392
158,854 626,217 656,429 Net realized gains on investments 9,669
17,201 31,826 60,783 Amortization of deferred gain on disposal of
businesses 3,245 (12,455 ) 12,988
(1,506 ) Total revenues 2,547,834 2,622,692
10,325,494 10,381,653
Benefits, losses and
expenses Policyholder benefits 1,009,889 1,123,995 4,742,535
4,405,333 Selling, underwriting, general and administrative
expenses 1,413,950 1,394,573 5,326,662 5,173,788 Interest expense
13,781 13,778 55,116 58,395
Total benefits, losses and expenses 2,437,620
2,532,346 10,124,313 9,637,516 Income
before provision for income taxes 110,214 90,346 201,181 744,137
Provision for income taxes 44,470 40,591
59,626 273,230 Net income $ 65,744 $ 49,755
$ 141,555 $ 470,907
Net income per
share: Basic $ 0.99 $ 0.70 $ 2.08 $ 6.52 Diluted $ 0.97 $ 0.69
$ 2.05 $ 6.44
Dividends per share $ 0.50 $ 0.27 $
1.37 $ 1.06
Share data: Basic weighted average shares
outstanding 66,732,896 71,054,598 68,163,825 72,181,447
Diluted weighted average shares outstanding 67,592,973 72,104,349
69,017,209 73,152,010
Assurant, Inc.
Consolidated Condensed Balance Sheets
(unaudited) At Dec. 31, 2015 and Dec. 31, 2014
December 31, December 31, 2015 2014
(in thousands) Assets Investments and cash and
cash equivalents $ 14,315,897 $ 15,450,108 Reinsurance recoverables
7,470,403 7,254,585 Deferred acquisition costs 3,150,934 2,957,740
Goodwill 833,512 841,239 Assets held in separate accounts 1,798,104
1,906,237 Other assets 2,507,098 3,152,557 Total
assets $ 30,075,948 $ 31,562,466
Liabilities
Policyholder benefits and claims payable $ 13,363,413 $ 13,182,278
Unearned premiums 6,423,720 6,529,675 Debt 1,171,382 1,171,079
Liabilities related to separate accounts 1,798,104 1,906,237
Deferred gain on disposal of businesses 92,327 100,817 Accounts
payable and other liabilities 2,703,035 3,491,073
Total liabilities 25,551,981 26,381,159
Stockholders' equity Equity, excluding accumulated other
comprehensive income 4,405,418 4,625,540 Accumulated other
comprehensive income 118,549 555,767 Total
stockholders' equity 4,523,967 5,181,307 Total
liabilities and stockholders' equity $ 30,075,948 $ 31,562,466
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160209006700/en/
Media:Vera Carley, 212.859.7002Assistant Vice President,
External Communicationvera.carley@assurant.comorInvestor
Relations:Suzanne Shepherd, 212.859.7062Assistant Vice
President, Investor Relationssuzanne.shepherd@assurant.com
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