A list of words that are forbidden for use in life and annuity advertisements.
Item 2.06. Material Impairments
On January 15, 2013, Assurant, Inc. (the "Company") concluded that it will take
a non-cash charge of approximately $27 million pre-tax ($20 million after-tax)
in the fourth quarter of 2012 for the impairment of certain other intangible
assets in the Assurant Solutions segment. These assets were established
primarily in connection with the 2007 acquisitions of two U.K. mortgage
insurance brokers. These assets were being amortized based on the expected
future persistency of the acquired business.
In mid-2012, persistency rates of the acquired business declined significantly
following actions by an independent underwriter of the business, resulting in
the impairment charge. Subsequently, the Company negotiated arrangements with
new underwriters. The non-cash impairment charge is not expected to have an
adverse impact on the Company's normal business operations, cash position or
cash flows from operating activities, or to result in future cash expenditures.
The Company also has completed its annual goodwill impairment testing for the
Assurant Solutions and Assurant Specialty Property reporting units in accordance
with ASC Topic 350, "Intangibles-Goodwill and Other." Based on the results of
the testing, the Company has concluded that the estimated fair value of these
reporting units was greater than their carrying value and as a result no
goodwill impairment charge was necessary in fourth quarter 2012.
CAUTIONARY STATEMENT - Some of the statements included in this Form 8-K,
particularly projections as to future earnings, are forward-looking statements
within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on management's best estimates, assumptions
and projections and are subject to significant uncertainties. Actual results may
differ materially from those projected in the forward-looking statements. The
Company undertakes no obligation to update any forward-looking statements in
this Form 8-K as a result of new information or future events or developments.
In addition, the statements above regarding the Company's annual goodwill
impairment testing are limited to the Company's annual goodwill impairment
testing for 2012, and no assurance can be made with respect to any future
testing of the Company's goodwill. For a detailed discussion of the general risk
factors that could affect the Company's results, please refer to the risk
factors identified in the Company's annual and periodic reports, including but
not limited to its 2011 Annual Report on Form 10-K and Third Quarter 2012 Form
10-Q, each as filed with the U.S. Securities and Exchange Commission.