2010 Annual Report & Form 10-K - Page 3

To Our Shareholders: In 2010, Assurant delivered solid results. We again affirmed the adaptability of our strategy to ongoing economic challenges and regulatory changes in the specialty markets we serve. Robert B. POLLOCK President and Chief Executive Officer, Assurant Assurant’s net earned premiums were $7.4 billion for the year, and our operating return on average equity 1 was 12.1 percent. We increased net operating income 2 20 percent to $560.1 million. Net income for the year decreased to $279.2 million, due to the impairment of goodwill that originated from acquisitions completed many years ago. Our diluted book value per share, excluding AOCI3, was up year-over-year by 6 percent. The Assurant investment portfolio remains solid and we are optimistic about each of our businesses as we enter 2011. Throughout 2010, we continued to exercise discipline in our deployment of capital. We returned more than $600 million to shareholders in repurchases and dividends. Our share repurchases represented 13 percent of the shares outstanding at year-end 2009. We also increased our dividend for the seventh consecutive year. These actions underscore the ability of the Assurant specialty platform to generate free cash flow. We ended the year with $880 million in corporate capital, an increase of nearly 24 percent from the previous year. Our capital deployment strategy provides financial flexibility guided by three principles: safeguarding the balance sheet against risk, finding opportunities to grow through acquisition, and returning value to our shareholders. During 2010, we streamlined operations to improve the customer experience while reducing costs. We also developed new revenue opportunities through a broader set of products and services that we can build on in 2011 and beyond. 2010 RESULTS FROM OPERATIONS Assurant Solutions Assurant Solutions focused on developing new client relationships and distribution channels in 2010. Net operating income for the year was $103.2 million and net earned premiums were $2.48 billion. We were especially pleased with the full-year improvement in our international operating results. Domestic revenues were down due to the impact of reduced levels of consumer spending. Our preneed ASSURANT - 2010 Annual Report 1

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