Assurant’s mission is to be the premier provider of specialized insurance products
and related services in North America and selected international markets. To achieve
this mission, we focus on the following areas:
• Building and maintaining a portfolio of diverse, specialty insurance businesses
• Leveraging a set of core capabilities—managing risk; managing relationships
with large distribution partners; and integrating complex administrative systems—for
competitive advantage
• Managing targeted growth initiatives
• Identifying and adapting to evolving market needs
• Centralizing certain key functions in the Corporate segment to achieve economies
of scale
Building and maintaining a portfolio of diverse, specialty insurance businesses—We
currently are made up of four operating business segments each focused on serving
specific segments of the insurance market. We believe that the uncorrelated
nature of the risks in our businesses allows us to maintain a greater level
of financial stability since our businesses will likely not be affected in the
same way by the same economic and operating trends.
Leveraging core capabilities for competitive advantage—We pursue a differentiated
strategy of building leading positions in specialized market segments for insurance
products and related services in North America and selected international markets.
These markets are generally complex, have a relatively limited number of competitors
and, we believe, offer attractive long-term profitable growth opportunities.
In these markets, we leverage the experience of our management team and apply
our core capabilities for competitive advantage—managing risk; managing relationships
with large distribution partners; and integrating complex administrative systems.
These core capabilities represent areas of expertise which are evident within
each of our businesses. We seek to generate insurance industry top-quartile
returns by building on specialized market knowledge, well- established distribution
relationships and economies of scale. As a result of our strategy, we are a
leader in many of our chosen markets and products.
Managing targeted growth initiatives—Our approach to mergers, acquisitions
and other growth opportunities reflects our prudent and disciplined approach
to managing our business. We make decisions based on strict guidelines ensuring
that any new business will support our business model. We have established performance
goals related to short-term incentive compensation for senior management based
on those and other initiatives.
Identifying and adapting to evolving market needs—Assurant’s businesses adapt
quickly to changing market conditions by tailoring product and service offerings
to specific client and customer needs. This flexibility was developed, in part,
as a result of our entrepreneurial culture and the encouragement of management
autonomy at each business segment. By understanding the dynamics of our core
markets, we design innovative products and services and seek to sustain long-term
profitable growth and market leading positions.
Centralizing certain key functions in the Corporate segment to achieve economies
of scale—At the Corporate level, Assurant, Inc. provides strategic management
and key resources for its operating businesses, including asset management,
employee benefits, finance, treasury, tax, accounting, legal, organizational
and leadership development, mergers and acquisitions and communications. We
also provide support services in such areas as information technology, financial
and human resources systems management, enabling the operating business segments
to focus on their target markets and distribution relationships while enjoying
the economies of scale realized by operating these businesses together and benefiting
from being part of a larger, diversified specialty insurance company. Our overall
strategy and financial objectives are set and continuously monitored at the
corporate level to ensure that our capital resources are being properly allocated.
Competition
Assurant’s businesses focus on niche segments within broader insurance markets.
While we face competition in each of our businesses, we believe that no single
competitor competes against us in all of our business lines and the business
lines in which we operate are generally characterized by a limited number of
competitors. Competition in our operating business segments is based on a number
of factors, including: quality of service, product features, price, scope of
distribution, financial strength ratings and name recognition. The relative
importance of these factors depends on the particular product and market. We
compete for customers and distributors with insurance companies and other financial
services companies in our various businesses.
Assurant Solutions and Assurant Specialty Property face competition in their
product lines, but we believe that no other company participates in all of the
same lines or offers comparable comprehensive capabilities as these two businesses.
Competitors include insurance companies, financial institutions and, in the
case of preneed—regional insurers. Assurant Health’s main competitors are other
health insurance companies, Health Maintenance Organizations (“HMOs”) and the
Blue Cross/Blue Shield plans in states where we write business. Assurant Employee
Benefits competitors include other benefit and life insurance companies, dental
managed care entities and not-for-profit dental plans.
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