www.insurancenewsnet.com/article.asp?n=1&neID=200705035 -
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Published on: 5/10/2007
Last Visited: 5/10/2007
Joining me are Rob Pollock, our President and ChiefExecutive Officer, Bruce Camacho, our Chief Financial Officer, MikePeninger, President and CEO of Assurant Employee Benefits and ChrisPagano, our Chief Investment Officer.
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Following Mike, Bruce will review the detailed financialresults for our other businesses.
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Thank you and now I'd like to turn the callover to Bruce.Bruce.
BRUCE CAMACHO, CFO, ASSURANT, INC.: Thanks Mike.
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BRUCE CAMACHO: Morning David.
DAVID LEWIS: Bruce, you talked about some of the benefits in theCredit Place homeowners coming from the shifts in the subprimemarket.
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BRUCE CAMACHO: Okay.
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ROB POLLOCK: I think the real question is you can think about thefactors Bruce outlined.
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BRUCE CAMACHO: Always a follow-on David, to just deal with theforeclosure, yes, if foreclosures are high, we would get moreplacement in those portfolio that we track.
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BRUCE CAMACHO: I think it was around, I want to say $57 million orso, in premium.
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BRUCE CAMACHO: Okay.
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BRUCE CAMACHO: It will be an impact only on -- if it has an impact,it going to be the impact on the gross written side.
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BRUCE CAMACHO: So, just to throw the loop back on the question.
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BRUCE CAMACHO: Yes, a good way to look at it, Dan, too is, when youlook at the balance sheet given by segment, you can compare the grosswritten growth and the UPR growth, understand that you've got a UPRbut got the DAC on the other side of it, just looking at that type ofcombination, so it's normally, it's a good half year convention, it'salmost like you will see UPR grow and stay up almost twice what thepremium is growing on written side.
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BRUCE CAMACHO: Again, the mix of business internationally, Yugo, inthe U.S. the old domestic business is dominated by monthly pay creditinsurance, normally on credit cards, whereas international growth iscoming primarily from single premium installment lending.
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BRUCE CAMACHO: The only capital we would keep in the Health businessis depending on the growth rate that's going on in Health that'sneeded to support it, but most of the earnings of Health, the plan isto take most of that earnings and dividend it out.
YUGO VAUGHNAN: Thank you.
BRUCE CAMACHO: Uh-huh.
OPERATOR: Thank you.
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BRUCE CAMACHO: It's a very disciplined approach Ed.
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ED SPEHAR: So, Bruce, in terms of the performance of the in-forcebook, has there been any change in your thoughts about that today aswhen you had the Investor Day?
BRUCE CAMACHO: No.
ED SPEHAR: And then one last question.On the internationalinvestments.Can you give us any color on the magnitude and timing ofthis type of spend and is there a loading in the First Quarter or isthis just something that's going to continue at a similar pace forthe foreseeable future?Anything on that would be helpful.
BRUCE CAMACHO: Okay, yes.There is no loading in the First Quarter.Ithink the indication is we have definitely stepped up from theopportunities that we feel we've stepped up our expansion plans.Ithink, Craig mentioned on Investor Day, that he has got a teamworking on an entry into China as well, so that's got spend.
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BRUCE CAMACHO: They have moved up slightly as well.
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BRUCE CAMACHO: Right.
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BRUCE CAMACHO: I think the best way to look at it -- we won'tquantify a specific client.
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BRUCE CAMACHO: Okay, pre-need, I think, is very stable.
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BRUCE CAMACHO: And second point, Joan, I think the impact is a verysmooth impact.