INSIDE

International
September 2009

Inside This Issue Stay the Course.

A Direct Flight is the Quickest
The European Picture Way to Reach Your Goal.
page 3 by Mike Anderson

China Now I’m sitting on a plane, making my way back home

page 4
from London to Atlanta. International flights
provide lots of time for thinking, and I find my
The Canadian Landscape
thoughts turning inevitably to the tough economic times we’re

page 5
experiencing in the United States and around the world. In my role as
president of Assurant’s International business, I have seen and heard

The View from Latin America

much about the global economy firsthand. And because the economy has

page 6
such a direct impact on Assurant Solutions, you might expect my goals
for the business to be impacted as well.

Navigating Successfully: So, what has changed in the vision for the International division in light
2Q09 Results of global economic challenges? The answer is…absolutely nothing!
page 7 Nothing has changed. You might ask, “How could that be?” Earlier in
the year, we established five 2009 imperatives for Assurant Solutions’
The Risk Report International business. I’d like to take you through each of these
page 8 imperatives and show you why I think we’re still on the right track.

1. Focus on Key Profit Growth Opportunities

Operations Overview We have made significant progress focusing our team on the deals that
page 9 will drive profitability. Our sales teams are focused on the marketing
intelligence that will give us the edge in dealing with needle-mover
clients. We are determined to create a high-powered, focused, values-
centric sales culture, winning deals that offer differentiated value to
our partners. Most important of all, we are focused on the integrity of
our relationships. We understand that a partnership built on trust is
the number one reason our clients choose Assurant Solutions, and stay
with us over time.

2. Enhance International Support Infrastructure

I must tip my hat to David Lane and Marilyn Wycoff , who have both
done a yeoman’s job in moving us leaps and bounds toward our goals
in operations and STP. A totally integrated International system is now
within our grasp! As most of you know, Marilyn will be retiring in
October and will be sorely missed. As far as I’m concerned, Marilyn
gets the “Difference Maker Award” this year for the tremendous
impact she has had on the entire International business. Thank you,
Marilyn, for your dedication to this company. You have truly made a
significant difference that your teammates will benefit from for many
continued on next page
years to come.
continued from cover

4. Drive Sales
The strategic vision for International has not
changed. As we approach the halfway mark, we are
The key to hitting our goals is very simple. We must
more focused than ever on our goal of $777 million
generate new revenue. The International Business
in new business in 777 days.
Board is focusing time and energy to ensure our
market intelligence will set us apart from the
competition. Our strategy is to deliver a uniquely
competitive plan of action, proving to the client that
Assurant Solutions can help them make more money,
better, faster and smarter than anyone else. We
continue to work on salesforce.com to provide the
tools necessary to drive sales. We are committed to
raising the bar on all aspects of the sales process and
training programs. We have shifted resources to
develop and improve strategic organizational
capabilities that drive performance and we’ll continue
to move our best, most talented employees to our
biggest opportunities. My thanks again to Mike
Balsley for moving to the other side of the world. Your
presence in China is invaluable. Thanks also to Keith
Demmings for his support of the China team. The
very large opportunity in China and other emerging
markets has not changed. Together, we will continue
to focus and grow our credit-related, extended
warranty, and wireless product lines.

5. Complete an acquisition in Europe

Steve Phillips continues to research the market to find
the right suitor, at the right time, with the right
culture. The right European acquisition could
certainly enhance our capabilities and help us achieve
profitability in Europe. But make no mistake. We will
grow our European business with or without an
acquisition.

You can see that the strategic vision for International has
not changed. As we approach the halfway mark, we are
more focused than ever on our goal of $777 million in
new business in 777 days. And in the midst of the most
uncertain times that we’ve ever experienced, we are
focused on our objectives, running ahead of our 777 goal
and developing a leadership team across the world that
will ultimately “double the business.”
3. Enhance Risk Management
Of that, you can be certain.
Wow! What a difference a year makes. David Conner
and team have made tremendous strides in creating a
very robust risk management system for International.
The EDU and New Business process have provided us
with a new system of governance. This system will
assist our international community with up to date
information essential to maintaining our profitability.

September 2009 Inside International, page 2

 The European Picture
As we look
towards
entering the
final quarter
of 2009, I
thought it
would be a
good opportunity to review what
we have achieved in Europe so far
and the progress made against our
objectives.
As discussed at the beginning of the
year, the first phase of building a
strong European business unit had
to focus on short-term goals to
ensure each country was well
positioned to ride the current storm
and come out the other side
stronger and more fit to outperform
the competition.
In the first phase of activity we
have undertaken a detailed analysis
of each individual environmental
and economic landscape to identify
both the challenges and
opportunities, and implement
appropriate strategies to mitigate
the risks so that each business is
positioned to seize opportunities as
they arise.
It is no surprise that as a result,
some tough decisions had to be
made. The recession has bit deeper
and more widely than most experts
had anticipated. Unemployment
levels have risen dramatically
across Europe. The UK is currently
experiencing the highest rate of
unemployment since the last
recession with 2.44 million people
now out of work. It’s a mirror
image in Ireland where
unemployment is at its highest level
in 13 years. An upward trend across
Euroland is forecast well into 2010
and there is a prediction of
unemployment rates hitting 20% in
Spain next year.
September 2009
This has naturally impacted claims
in some territories more than others
and in selected markets we have
undergone a thorough re-rate
programme. This has not been an
easy task and has required
tremendous efforts in the affected
countries, both in terms of the
actuarial process as well as the
communication programme to our
clients and our policyholders. It has
also been important to carefully
manage media attention to protect
our brand image and reputation
along the way.
The high claims levels have
highlighted the fundamental
challenge posed by creditor
insurance products in their current
form. Underwritten at the point of
claim, they fail to deliver a true
picture of the policyholder’s risk
profile when the product is sold.
We believe that it is time to move
towards underwriting creditor
products at the point of sale. This
will enable us to price products
according to the customer’s
individual risk profile, giving us far
by Ian Moffatt
greater control over a portfolio
and enabling us to assess whether
a particular type of risk is
appropriate to our own risk
appetite at any time.
We have made good headway in
developing the product concept and
are looking to launch a pilot in the
UK by the end of the year.
While the realities of riding the
current economic cycle have
resulted in a lot of focus on the
short-term goals, we have not taken
our eye off the vision and I’m
pleased to advise that significant
progress has been made on
identifying the key target audiences
for our product lines. We are
developing distinct plans for each
of the operating models in EPS,
DFS and Wireless. We have also
made great strides forward in
defining our overall European
value proposition, and a pan-
European workshop is scheduled
in September to bring all of this
work together.
Our timing couldn’t be better. Two
years ago this month, the credit
crisis shook the foundations of the
financial world leading to the global
recession in which we currently
find ourselves. At the beginning of
the year, many forecasted a
protracted economic downturn for
Euroland. A few experts, however,
took a more optimistic view and
their cautious forecasts of a gradual
upturn for Euroland towards the
end of 2009 are starting to look
more accurate right now. While
there is still a long way to go before
the European markets fully exit
recession, there are some
encouraging green shoots.
We must not lose sight, however, of
continued on page 9
the need to
Inside International, page 3
 China Now
2009 will be
an important
year for
Assurant
Solutions in
China. The
employees here in China, as well as
the International business as a
whole, are committed to the growth
of our Asian business. We are
working hard to enhance our
infrastructure and local operations
this year, and are focused on
obtaining the client contracts we
need to fully implement our
extended service contract business.
“
Our Vision Statement:
To establish Assurant
Solutions China as the
premier service provider
in China within 5
years. This will be
demonstrated
by taking a leading
position in ESC and
credit business through
win-win relationships
with clients, best-in-
class products and with
a dedicated and loyal
”
staff who are proud to
be associated with our
company.
September 2009
by Anthony Lee
The signing ceremony with our third contract client, CentreYou, on August 5, 2009.
In the first half of this year, the
International business announced
that Keith Demmings and Mike
Balsley would join our team to help
accelerate business development
and train our local talent. We are
extremely grateful to have these two
senior leaders.The transference of
their experience and knowledge will
be a valuable part of our strategy to
win our targeted clients.
For this issue of Inside
International, we have some good
news to share. Through the hard
work of our local team and with
support from the International
business, we closed three contracts
by the end of August 2009. The first
two contracts are both with Internet
businesses. One is local and one is a
US-based internet channel that
markets consumer electronics and
home appliances in China. The third
contract is with a mobile phone
retailer, with the capability to serve
handsets throughout China.
These successes are a direct result of
our strategy to start small in order
to learn the market and establish the
operation. With the closing of these
three deals, the China team has
gained more confidence and
experience in developing China’s
ESC business and is now targeting
larger, more strategic local and
international retailers. We currently
have a short list of targeted
prospects grouped as Internet
channels, retailers and OEM clients.
China is a new and rapidly
developing country. There remains
much to learn. We are constantly
striving to learn and benefit from
the expertise of the corporate office,
the international division and all of
you at Assurant Solutions. At the
same time, we believe that China
has a great deal to offer the
organization in return. We believe
that the innovative ideas our team is
generating will help to develop
current business and bring in new
opportunities to take Assurant
Solutions into the future.
Inside International, page 4
 The Canadian Landscape by Keith Demmings

In this edition of “The Canadian that the average cost for a funeral has nearly doubled in
Landscape,” I want to highlight a the past 15 years. A fundamental benefit of funeral
business within our International insurance is that the final death benefit can grow over
division that plays a key role in the time. Given the many variables at play, from economic
continued success of Assurant factors to life expectancy, planning and paying for one’s
Solutions. The business unit I am funeral through insurance is a great way for the
referring to is Preneed Canada, an extremely profitable
product line and one that is critical to Assurant’s growth
strategy.
Within Assurant’s International business, Canada is the
only country that currently operates a preneed product
line, and I’m guessing it is an area that many of us have
had little exposure to. So I’d like to take this opportunity
to share with you how we position and market the
preneed suite of products in Canada.
The preneed business is underwritten by Assurant Life of
Canada and is solidly financed with an A.M. Best Rating
of A-, reporting close to 700 million dollars in assets.
Preneed Canada is led by senior vice president Frank
Genest, and is supported by a dedicated team of eight
people located in our Toronto and Atlanta offices.
In the Canadian marketplace, purchasing funeral
insurance is a popular method of preparing for funeral
arrangements and the associated costs. Assurant offers
two main products under the funeral insurance umbrella.
With a Final Expense insurance plan, the client names a

In the Canadian marketplace,

purchasing funeral insurance is
a popular method of preparing
for funeral arrangements and the
associated costs.
beneficiary to whom proceeds are paid at the time of the
client’s death. The beneficiary uses the proceeds to pay
for the client’s funeral services and related expenses. The
other product is the Preneed Plan. With this plan, the
client has the opportunity to plan the details of their
funeral in advance and arrange for the associated costs to
be covered by insurance. Upon the client’s death, the
benefit is paid directly to a pre-selected funeral home.
The basic premise of funeral insurance is that the
proceeds of this policy can be used to cover expenses
associated with a funeral service. It’s important to note
consumer to protect against the rising cost of funerals.
All Assurant Life of Canada’s funeral insurance plans
include this vital feature, unlike most traditional life
insurance policies.
Our funeral insurance plans are designed to provide
peace of mind to loved ones during a difficult time. Key
benefits include: protecting the family from the emotional
and financial strain of making arrangements during a
difficult time; arranging funeral details to reflect the
customer’s own wishes; securing all the benefits at
today’s prices; and the ability to purchase the plan
regardless of the customer’s age or health.
Additional services provided by Assurant Preneed
include travel assistance benefits and a 24/7 concierge
service that provides for the repatriation of a deceased
should they die abroad.
Assurant’s funeral insurance is sold throughout Canada
continued on page 10
via a network of over 700

September 2009 Inside International, page 5

 The View from Latin America
Would you like to hear a
prediction? Despite all of the
economic challenges we’ve faced
this year, Assurant Solutions in
Latin America will see a strong
finish in 2009 and have a robust
foundation in place for the year to
come. It is our focus on the LATAM vision that will get
use there. Our vision continues to make a big difference
in the way we perform and the results we are achieving.
We have closed several large opportunities in Mexico this
year, including Scotiabank and HSBC, which is a Global
Client Management opportunity led by Al Fosha and
Allen Tuthill. In Puerto Rico, we renewed clients
producing over 50% of the area’s total retention. We
continue to increase the already sizable market share we
have claimed in Argentina with more new banks and
retailers, and we have had two fully profitable quarters in
Brazil. These are no small tasks. The teams in each of
these countries are doing a fantastic job at keeping the
sales momentum alive.
But wait, that’s not all! We have a prospect pipeline
exceeding $400 million USD. Yes, we are currently
working with opportunities totaling an amount which is
higher than the total volume of business that we will
produce in the region this year. So what’s the main
“Building
takeaway here? Double is Doable!
Now, let’s review our Vision once more:
within Assurant Solutions.”
together the most
admired and profitable business
OUR VISION CONTINUES TO MAKE A BIG DIFFERENCE IN THE
WAY WE PERFORM AND THE RESULTS WE ARE ACHIEVING.
September 2009
by Miguel Lopez
I would like to focus your attention on the words Most
Admired. Although admiration may be less measurable
than profits, it is important to see that it is the most
important of the two goals in our vision. It is the link
between teamwork and profits. It is the critical piece
connecting the dots. Focusing on our core business is a
fundamental piece of our corporate strategy. We are
looking to motivate our peers to support our business
because they see the value in doing it.
I realize in certain functional areas we need to do what
needs to be done because that is our job description.
However, our proposal to our support teams in
headquarters, other countries and other companies
within Assurant, is that when you provide support to us,
we will pay you back with results that make you feel
great. We want people to know we appreciate and value
the support we receive.
We want to get the very best that is out there. We want
people to see Assurant Solutions as a great place to build
a career. We want to make sure our clients see the value
in working with us, not only when they sign for the first
time but throughout their lifetime experience.
While we encourage all our team members to
passionately execute our strategies, we want to make
sure it is only done following our core values:
Integrity, Change, Urgency and Excellence
Our Values are the reason why we exist. They are what
keep us afloat in rough times. Make no mistake, we have
done a great job in this first half of 2009. Each of you
should be proud of your accomplishments, and you have
every reason to celebrate. But as we look ahead to the
remainder of the year, I encourage each and every one of
you in Assurant Solutions Latin America to keep focused
on our targets and to give your very best each day.
Inside International, page 6
Navigating Skillfully: 2Q09 Results
The events of
the June 2009
quarter
reminded me
of the time I
was on a boat
in the middle
of the Indian
Ocean some
years ago. A
severe storm raged for several days
and at times I wasn’t sure if we
would make it to our destination.
As it turned out, the ship was
steered skillfully by the ship’s
captain and crew around the worst
of the storm, and we arrived at our
next port of call on time with the
ship intact.
we can take
pride in how
we have adapted
to unfamiliar
conditions
The International business is going
through a similar storm, namely the
global economic slowdown, and it
has affected some countries more
than others. There are some signs
that the worst of the crisis may be
over. However, we cannot be
completely sure and we need to
continue to adapt to the situation
and navigate our businesses
skillfully, mitigating risks,
preserving our assets and
positioning ourselves to go full
speed ahead when the skies
eventually clear.
International made a loss during the
quarter largely because of higher
than expected losses in Europe,
September 2009
principally the UK, one of the
countries among the worst hit by the
economic crisis. Fortunately, the
storm clouds had silver linings. The
ability and skill of the International
team to adapt to the adverse
economic environment by mitigating
losses and seeking opportunities
was evident in all the countries
during the quarter.
In the UK and Ireland,
unemployment levels continued to
climb to record levels and, as
forecasted, our claims losses also
rose significantly. However, local
management skillfully arranged a
transfer of the specific portfolios that
had the highest loss ratios. In
addition, management renegotiated
pricing on our core broker and
creditor businesses in the UK and
Ireland and took steps to streamline
processing operations and reduce
expenses while at the same time
signing new broker relationships to
prepare for the eventual recovery. .
Assurant UK management also
successfully completed the transfer
of key portfolios in Denmark, a
country we exited in 1Q09, further
reducing our future loss exposure in
that country.
by Rajiv Krishnan
Our European expansion countries,
Germany, Italy and Spain, were also
adversely affected by the global
slowdown resulting in lower sales
in our creditor and warranty
businesses than expected.
Nevertheless, our European
colleagues adapted to market
conditions by judiciously reducing
expenses to meet pre-tax income
targets while at the same time
diligently building their prospect
pipelines with an eye on the future.
China is somewhat less negatively
affected by the global crisis and its
gross domestic product (GDP)
continues to grow at an annual rate
in excess of 8%. The first client of
Assurant China started generating
premiums during the quarter giving
all of International cause to
celebrate. Local management
continues to build local relationships
and find ways to tap into the vast
potential for Assurant’s products
and services in China. In July, a
second warranty client started
selling our policies – another
positive sign !
continued on page 10
Inside International, page 7
The Risk Report
The International Risk Management
(IRM) team was established to create
tools and processes for the
International business to identify,
quantify, monitor and mitigate risk.
Our goal is to help maximize results
for the International business and
ultimately assist Assurant in
achieving it’s financial goals.
We have been working on two key
initiatives in pursuit of this goal. The
New Business Process (NBP) and the
Monthly Early Detection Unit
Committees (MEDUC) both provide
opportunities to review and enhance
the business, from the front end of a
deal throughout the client’s
relationship with Assurant.
New Business Process (NBP):
The relationship cycle begins with
the proposal to the client. The NBP
was developed to review these
proposals, enhancing the awareness
of the business funnel and
leveraging the shared expertise and
September 2009
by David Conner
learnings from the experiences of the
International support team.
It has now been almost one year
since the NBP was launched, and
there have been almost 200 new
proposals reviewed through the
NBP, representing all product lines
and combinations. In support of the
“777 in 777” initiative, International
has been very active in pursuing
new business. The NBP has been
especially useful in leveraging best
practices and communicating the
information with urgency. With
everyone’s help and hard work, this
process has come a long way and is
now recognized as a best practice by
other Assurant business segments
and by Assurant’s ERM Committee.
I would like to thank everyone who
participates in this important
endeavor, including each country’s
Single Point of Contact (SPOC) and
leaders/participants from Actuarial,
Compliance, Finance, Operations,
Profits, and Risk Management.
Monthly Early Detection Unit
Committees (MEDUC):
There are now 12 functioning
MEDUCs, including each country as
well as International HQ support,
that hold regular monthly meetings
to review the results of the risk
dashboards. Each meeting is
complete with agenda and minutes.
Upon landing a new client and
receiving a signed contract from the
country of origin, the MEDUC
process begins. We have a contract
database capturing the key
provisions of each contract and
organizing them so that they can
easily intersect with the Early
Detection Unit (EDU) risk
dashboards. There are now close to
300 contracts in the database in both
the original language and English
translation. The MEDUC process
uses the contracts to understand the
specifics of the deal and identify key
risk factors to monitor. The EDU
dashboards monitor the business
across multiple key indicators and
intersect actual production data with
original priced assumptions.
Currently, there are 321 dashboards
(205 for ESC; 44 for VSC; 3 for WEP
and 69 for Credit) produced
monthly representing all countries
and products. All countries’ ESC
and VSC dashboards as well as
Argentina, Brazil, Mexico and UK
credit dashboards are now included.
The remaining countries are on track
for completion, using the results of
the SAS Global Repository project.
The dashboards provide a monthly
view of the client’s performance, but
also incorporate a risk rating
methodology developed to identify
potential problems before they
become extensive and expensive.
The results are discussed and
mitigation plans are developed and
tracked monthly in meetings at the
country, regional and corporate
levels. Updates are provided during
each International Business Board
meeting.
IRM’s next key initiative is to roll
out a global ERM process employing
a modified version of the process
that has been established in Europe.
This is important for many reasons
including capturing, aggregating,
and monitoring significant
enterprise risks which we will use to
integrate with the Assurant-wide
ERM effort. This effort will begin in
September 2009 with the goal of full
implementation by June 2010. Stay
tuned for more information on this
in the next Inside International: Risk
Report.
Please contact anyone on the IRM team
for further details on NBP and MEDUC
processes or for specific information
regarding the EDU risk dashboards.
Inside International, page 8
 Operations Overview by David Lane
We are losing one of our finest Operations leaders this
quarter. I am both happy and sad to see Marilyn
Wycoff retire on September 30, and I know many of
you feel the same way. We’re happy for her because
she has been planning to retire for some time now,
and executing on a plan is what Marilyn does best.
The sad part, of course, is that we will miss Marilyn.
She has contributed so much to International since
she has been part of our team. Taking on business
analysis and system support has been one of the most
challenging areas in International and has kept me
awake at night. Marilyn not only agreed to take this
on but approached these challenges with the same
passion, commitment and dedication you would
expect of someone at the beginning of their career.
One would think that someone so close to retirement
might consider just biding their time and taking
things as easy as possible. But if that’s what you
think, then you don’t know Marilyn. I really don’t
know how she will be able to slow down and retire
with all that energy but of course she’s not going to
Marilyn Wycoff Jose Fleites
The European Picture, cont. from page 3
review and refine our European proposition. Not only do
we need to go back to basics in serving our clients and
their customers well, we need to understand our
competitors and ensure that our capabilities exceed
theirs. We’ve recently concluded a study of the
competition and are starting work at a regional level to
target pan-European prospects, maximizing our
European footprint which few competitors can match.
Back in January, I set the following key message theme
for the European business unit: ‘Now is the time’. While
there are glimmers of light on the horizon, the global
economy continues to challenge us all. It is more
September 2009
slow down a bit but only focus on the next phase in
her life. Her career with Assurant spans over 40 years.
Now she will spend more time with family and
travel. I couldn’t be happier for Marilyn so please join
me in wishing her well and celebrating the many
accomplishments she has contributed to Assurant
throughout her career.
Here’s the good news. As Marilyn leaves our team,
we are pleased to announce that Jose Fleites will be
joining us. Jose has some big shoes to fill, but I must
say he’s just the guy to do it. Jose has been with
Assurant for sixteen years, serving in various roles
throughout the organization. He started his career
with us in an operations role then moved to Systems
Manager – Contact Center Development. After that,
Jose accepted a role supporting Mike Anderson and
the auto and recreational vehicle service contract
business located in St. Petersburg, Florida. In 2006
Jose joined our Diversified Financial Services (DFS)
business where he supported systems and
applications. Jose now will continue to carry the torch
of improvement in the Business Analysis and System
Support, replacing Marilyn. Jose holds a BBA in
Finance and International Business form Florida
International University and a MBA in Management
from Barry University. Jose is also fluent in Spanish,
conversational French and he is learning Portuguese.
This area is critical for the success of International
and meeting our “$777 million in 777 days” goal.
There has been much to celebrate and much more
to do as we send best wishes to one leader and
welcome another.
important than ever that we continue to focus, identify
and implement the changes we need
to make in order to be in a strong position to act as
markets around the world recover.
My vision for a sustainable European business unit that
delivers long-term, profitable growth remains. I feel
confident that we have met the immediate challenges laid
in our path by the recession and adopted the appropriate
strategy in the short-term to see us through this troubled
period. Now is the time
to focus on our medium to longer-term goals by putting
strategies in place to help us achieve that vision.
Inside International, page 9
The Canadian Landscape, cont. from page 5
‘producers,’ composed of
independent insurance agents,
funeral home owners/directors and
funeral counselors. Assurant works
closely with this extensive sales
network to ensure that all facets of
this niche insurance product are
positioned and sold according to our
core value propositions.
The products are marketed directly to
the consumer as well as to funeral
homes, including Service Corporation
International (SCI) - the largest
operator of funeral homes in the
world. Assurant Canada continually
works to enhance this relationship, a
partnership that has been built by our
Preneed counterparts in the U.S.
The primary target market for funeral
insurance is men and women
between the ages of 60-80. The value
of a prearranged funeral is often
recognized when an individual
witnesses the passing of
familymembers or close friends.
Our funeral insurance plans are designed to provide
peace of mind to loved ones during a difficult time.
The ability to have a greater level of
control over one’s own arrangements
inspires many to pre-plan.
New policies are being added at a
rate of approximately 30,000 a year
and there are currently close to
225,000 actively insured policies in
every province and territory in
Canada. With the market potential for
this product continuing to increase –
primarily due to the aging ‘boomer’
population – it is anticipated that this
positive sales trend will continue for
the balance of the year.
The overall market for final expense
and insurance-related prearranged
funeral services in Canada is
estimated at $215 million. Assurant
has assumed market leadership in
this arena, with a share of 65%. This
translates to $140 million in annual
sales for the fiscal year 2008. In 2009,
sales are currently up by 19% from
last year – a tremendous
accomplishment.
The emerging trends in the
marketplace center on providing
more customer-centric services.
Such services include post-funeral
receptions, memorials, after-care
psychological support and more
comprehensive concierge services.
Assurant is already well positioned to
meet these needs with a variety of
customized packages and plans. And
I believe Assurant Solutions has the
right team and business plan to
maintain and enhance our market
leadership position for many years
to come.

Navigating Skillfully, cont. from page 7

Latin America had a mixed quarter with Brazil showing
impressive growth while Argentina, Mexico and Puerto
Rico appeared to be slowed down by unfavorable
market conditions. Brazil, like China, with its large and
diversified economy is also relatively less affected by the
global crisis. Our Brazilian colleagues continue to make
impressive strides in closing new contracts and
streamlining processing operations. Net premiums in
Brazil grew 50% over the 2nd quarter of 2008 and 10%
over the prior quarter of 2009 while expenses remained
firmly under control. Argentina’s continuing political
uncertainty after the recent elections further worsened
its economic problems and caused consumer spending
to drop sharply resulting in lower premiums,
particularly in our warranty business. Despite the
difficult conditions, the country remains profitable and
management is taking prudent actions to streamline
operations and expand our business relationships in
neighboring Chile – another example of navigating
skillfully! Puerto Rico achieved its profit forecast as
management continued to manage expenses tightly in
the downturn and redirect its focus to warranty and
wireless contracts and away from the slump in the
creditor business. And finally, our Mexican business
performed below forecast as it went through an
outbreak of swine flu as well as being afflicted by same
macroeconomic bug as the USA. Yet, we signed a new
bank contract that significantly improves our prospects
in this exciting country.
Our Canadian businesses remained pillars of strength
through the turbulent quarter. Our Solutions business
exceeded profit forecasts overcoming declines in some
products as the RBC contract began writing premiums
ahead of schedule and management renegotiated a key
warranty contract on favorable terms. Our Canadian
pre-need business recorded its highest ever policy (face)
sales during the quarter as a result of well timed sales
promotion events and incentives. This business again
met its profit forecasts and continues to strengthen its
already dominant market share.
In summary, 2Q09 was a difficult quarter for many
us but we can take pride in how we adapted to the
unfamiliar conditions. Keep navigating skillfully
because the storm clouds will eventually clear and
we will have many more successful voyages!

September 2009 Inside International, page 10