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ASSURANT, INC. - Quarter Report: 2022 June (Form 10-Q)


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2022
OR 
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from                      to                     

Commission file number 001-31978 

Assurant, Inc.
(Exact name of registrant as specified in its charter)
Delaware  39-1126612
(State or other jurisdiction of incorporation)  (I.R.S. Employer Identification No.)
55 Broadway, Suite 2901
New York, New York 10006
(212) 859-7000
(Address, including zip code, and telephone number, including area code, of Registrant’s Principal Executive Offices)

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.01 Par ValueAIZNew York Stock Exchange
5.25% Subordinated Notes due 2061AIZNNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer 
Non-accelerated filer 
  Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
The number of shares of the registrant’s common stock outstanding at July 29, 2022 was 53,209,323.



ASSURANT, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022
TABLE OF CONTENTS
 
Item
Number
 
Page
Number
1.Consolidated Financial Statements (unaudited) of Assurant, Inc.
Consolidated Balance Sheets (unaudited) as of June 30, 2022 and December 31, 2021
Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2022 and 2021
Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2022 and 2021
Consolidated Statements of Changes in Equity (unaudited) for the three and six months ended June 30, 2022 and 2021
Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2022 and 2021
Notes to Consolidated Financial Statements (unaudited)
2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
3.Quantitative and Qualitative Disclosures About Market Risk
4.Controls and Procedures
1.Legal Proceedings
1A.Risk Factors
2.Unregistered Sales of Equity Securities and Use of Proceeds
6.Exhibits
Signatures

1



Assurant, Inc.
Consolidated Balance Sheets (unaudited)
June 30, 2022December 31, 2021
 (in millions, except number of 
shares and per share amounts)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost - $6,776.3 and $6,903.9 at June 30, 2022 and December 31, 2021, respectively)
$6,308.8 $7,215.3 
Equity securities at fair value311.0 445.7 
Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $0.9 and $1.1 at June 30, 2022 and December 31, 2021, respectively)
293.5 256.5 
Short-term investments179.5 247.8 
Other investments515.2 506.3 
Total investments7,608.0 8,671.6 
Cash and cash equivalents1,182.0 2,040.8 
Premiums and accounts receivable (net of allowances for credit losses of $8.9 and $9.4 at June 30, 2022 and December 31, 2021, respectively)
2,376.9 1,942.5 
Reinsurance recoverables (net of allowances for credit losses of $5.7 and $5.0 at June 30, 2022 and December 31, 2021, respectively)
6,094.8 6,181.2 
Accrued investment income94.0 62.1 
Deferred acquisition costs9,359.0 8,811.0 
Property and equipment, net608.8 561.4 
Goodwill2,558.2 2,571.6 
Value of business acquired397.2 583.4 
Other intangible assets, net676.2 719.2 
Other assets (net of allowances for credit losses of $2.3 and $2.5 at June 30, 2022 and December 31, 2021, respectively)
773.6 698.9 
Assets held for sale (Note 4)— 1,076.9 
Total assets$31,728.7 $33,920.6 
Liabilities
Future policy benefits and expenses$401.5 $413.2 
Unearned premiums19,219.5 18,623.7 
Claims and benefits payable1,542.6 1,604.8 
Commissions payable648.6 692.7 
Reinsurance balances payable469.8 446.2 
Funds held under reinsurance338.7 364.2 
Accounts payable and other liabilities 2,519.5 3,044.4 
Debt2,128.8 2,202.5 
Liabilities held for sale (Note 4)— 1,064.8 
Total liabilities27,269.0 28,456.5 
Commitments and contingencies (Note 16)
Stockholders’ equity
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 55,557,497 and 58,050,202 shares issued and 53,261,408 and 55,754,113 shares outstanding at June 30, 2022 and December 31, 2021, respectively
0.6 0.7 
Additional paid-in capital1,629.9 1,695.0 
Retained earnings3,774.2 4,041.2 
Accumulated other comprehensive loss(822.2)(150.0)
Treasury stock, at cost; 2,296,089 shares at June 30, 2022 and December 31, 2021
(122.8)(122.8)
Total equity4,459.7 5,464.1 
Total liabilities and equity$31,728.7 $33,920.6 
See the accompanying Notes to Consolidated Financial Statements (unaudited)
2



Assurant, Inc.
Consolidated Statements of Operations (unaudited)
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
 (in millions, except number of shares and per share amounts)
Revenues
Net earned premiums$2,168.9 $2,150.6 $4,305.3 $4,256.2 
Fees and other income325.2 298.5 647.6 548.4 
Net investment income92.0 82.9 178.3 159.2 
Net realized (losses) gains on investments (including $(1.6), $1.2, $(2.1) and $0.2 of impairment-related (losses) gains for the three and six months ended June 30, 2022 and 2021, respectively) and fair value changes to equity securities
(76.4)10.3 (138.8)11.1 
Total revenues2,509.7 2,542.3 4,992.4 4,974.9 
Benefits, losses and expenses
Policyholder benefits600.0 535.2 1,090.0 1,066.8 
Underwriting, selling, general and administrative expenses1,811.7 1,738.6 3,602.3 3,426.4 
Interest expense27.2 28.8 54.1 57.2 
Loss on extinguishment of debt0.9 — 0.9 — 
Total benefits, losses and expenses2,439.8 2,302.6 4,747.3 4,550.4 
Income from continuing operations before income tax expense69.9 239.7 245.1 424.5 
Income tax expense 17.7 52.6 43.9 96.6 
Net income from continuing operations52.2 187.1 201.2 327.9 
Net income from discontinued operations (Note 4)— 18.9 — 33.2 
Net income52.2 206.0 201.2 361.1 
Less: Net loss attributable to non-controlling interest— (0.2)— — 
Net income attributable to stockholders52.2 205.8 201.2 361.1 
Less: Preferred stock dividends— — — (4.7)
Net income attributable to common stockholders$52.2 $205.8 $201.2 $356.4 
Earnings Per Common Share
Basic
Net income from continuing operations$0.96 $3.07 $3.65 $5.38 
Net income from discontinued operations$— $0.31 $— $0.55 
Net income attributable to common stockholders$0.96 $3.38 $3.65 $5.93 
Diluted
Net income from continuing operations$0.95 $3.05 $3.61 $5.33 
Net income from discontinued operations$— $0.31 $— $0.54 
Net income attributable to common stockholders$0.95 $3.36 $3.61 $5.87 
Share Data
Weighted average common shares outstanding used in basic per common share calculations54,607,321 60,990,609 55,190,104 60,096,711 
Plus: Dilutive securities407,626 331,947 473,842 1,457,291 
Weighted average common shares outstanding used in diluted per common share calculations55,014,947 61,322,556 55,663,946 61,554,002 

See the accompanying Notes to Consolidated Financial Statements (unaudited)
3



Assurant, Inc.
Consolidated Statements of Comprehensive Income (unaudited)
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
 (in millions)
Net income$52.2 $206.0 $201.2 $361.1 
Other comprehensive (loss) income:
Change in unrealized gains on securities, net of taxes of $77.5,$(22.4), $162.8 and $36.4 for the three and six months ended June 30, 2022 and 2021, respectively
(291.9)87.2 (626.7)(123.1)
Change in unrealized gains on derivative transactions, net of taxes of $0.2, $0.2, $0.4 and $0.4 for each of the three and six months ended June 30, 2022 and 2021, respectively
(0.7)(0.6)(1.3)(1.2)
Change in foreign currency translation, net of taxes of $1.0, $(1.9), $(2.6) and $0.2 for the three and six months ended June 30, 2022 and 2021, respectively
(41.9)13.6 (40.6)20.8 
Change in pension and postretirement unrecognized net periodic benefit cost, net of taxes of $0.6, $0.2, $0.9 and $0.7 for the three and six months ended June 30, 2022 and 2021, respectively
(2.4)(0.7)(3.6)(2.3)
Total other comprehensive (loss) income(336.9)99.5 (672.2)(105.8)
Total comprehensive (loss) income(284.7)305.5 (471.0)255.3 
Less: Comprehensive loss attributable to non-controlling interest— (0.2)— — 
Total comprehensive (loss) income attributable to stockholders$(284.7)$305.3 $(471.0)$255.3 

See the accompanying Notes to Consolidated Financial Statements (unaudited)
4



Assurant, Inc.
Consolidated Statements of Changes in Equity (unaudited)
Three Months Ended June 30, 2022
Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
 (in millions)
Balance at March 31, 2022$0.6 $1,652.1 $3,954.4 $(485.3)$(122.8)$4,999.0 
Stock plan compensation expense— 16.9 — — — 16.9 
Common stock dividends ($0.68 per share)
— — (38.6)— — (38.6)
Acquisition of common stock— (39.1)(193.8)— — (232.9)
Net income— — 52.2 — — 52.2 
Other comprehensive loss— — — (336.9)— (336.9)
Balance at June 30, 2022$0.6 $1,629.9 $3,774.2 $(822.2)$(122.8)$4,459.7 
Three Months Ended June 30, 2021
Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Treasury
Stock
Non-controlling InterestTotal
 (in millions)
Balance at March 31, 2021$0.7 $1,804.3 $3,612.6 $504.5 $(122.8)$3.4 $5,802.7 
Stock plan compensation expense— 17.2 — — — — 17.2 
Common stock dividends ($0.66 per share)
— — (41.8)— — — (41.8)
Acquisition of common stock— (35.3)(156.2)— — — (191.5)
Net income— — 205.8 — — 0.2 206.0 
Issuance of common stock— — — — — — — 
Change in equity of non-controlling interest— — (0.6)— — (3.6)(4.2)
Other comprehensive income— — — 99.5 — — 99.5 
Balance at June 30, 2021$0.7 $1,786.2 $3,619.8 $604.0 $(122.8)$— $5,887.9 
Six Months Ended June 30, 2022
Common StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive Income (Loss)
Treasury
Stock
Total
 (in millions)
Balance at December 31, 2021$0.7 $1,695.0 $4,041.2 $(150.0)$(122.8)$5,464.1 
Stock plan exercises— 7.8 — — — 7.8 
Stock plan compensation expense— 29.3 — — — 29.3 
Common stock dividends ($1.36 per share)
— — (76.0)— — (76.0)
Acquisition of common stock(0.1)(102.2)(392.2)— — (494.5)
Net income— — 201.2 — — 201.2 
Other comprehensive loss— — — (672.2)— (672.2)
Balance at June 30, 2022$0.6 $1,629.9 $3,774.2 $(822.2)$(122.8)$4,459.7 
5



Assurant, Inc.
Consolidated Statements of Changes in Equity (unaudited)
Six Months Ended June 30, 2021
Preferred StockCommon StockAdditional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Treasury
Stock
Non-controlling InterestsTotal
 (in millions)
Balance at December 31, 2020$2.9 $0.6 $1,956.8 $3,533.5 $709.8 $(267.4)$3.4 $5,939.6 
Stock plan exercises— — 5.4 — — — — 5.4 
Stock plan compensation expense— — 30.4 — — — — 30.4 
Common stock dividends ($1.32 per share)
— — — (80.0)— — — (80.0)
Acquisition of common stock— — (64.6)(189.5)— — — (254.1)
Net income— — — 361.1 — — — 361.1 
Preferred stock conversion(2.9)0.1 (141.8)— — 144.6 — — 
Preferred stock dividends ($1.63 per share)
— — — (4.7)— — — (4.7)
Change in equity of non-controlling interests— — — (0.6)— — (3.4)(4.0)
Other comprehensive income— — — — (105.8)— — (105.8)
Balance at June 30, 2021$— $0.7 $1,786.2 $3,619.8 $604.0 $(122.8)$— $5,887.9 

See the accompanying Notes to Consolidated Financial Statements (unaudited)
6



Assurant, Inc.
Consolidated Statements of Cash Flows (unaudited)
Six Months Ended June 30,
 20222021
(in millions)
Operating activities
Net income attributable to stockholders$201.2 $361.1 
Adjustments to reconcile net income to net cash provided by operating activities:
Noncash revenues, expenses, gains and losses included in net income from operations:
Income from discontinued operations— (33.2)
Deferred tax expense14.2 (16.9)
Depreciation and amortization 95.4 84.1 
Net realized losses (gains) on investments, including impairment losses138.8 (11.1)
Stock based compensation expense29.3 30.4 
Changes in operating assets and liabilities:
Insurance policy reserves and expenses527.1 623.1 
Premiums and accounts receivable (444.5)(143.6)
Commissions payable(40.6)(3.8)
Reinsurance recoverable77.0 (115.3)
Reinsurance balance payable 18.5 89.2 
Funds withheld under reinsurance (24.9)(0.2)
Deferred acquisition costs and value of business acquired (352.0)(424.8)
Taxes (receivable) payable(68.3)24.6 
Other assets and other liabilities(459.8)(48.8)
Other(39.5)(4.9)
Net cash provided by operating activities - discontinued operations— 119.1 
Net cash (used in) provided by operating activities(328.1)529.0 
Investing activities
Sales of:
Fixed maturity securities available for sale1,712.6 438.5 
Equity securities40.3 3.5 
Other invested assets 93.0 88.1 
Subsidiary, net of cash transferred4.8 — 
Maturities, calls, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale297.8 506.7 
Commercial mortgage loans on real estate23.1 7.8 
Purchases of:
Fixed maturity securities available for sale(1,903.1)(753.2)
Equity securities(27.0)(15.3)
Commercial mortgage loans on real estate(59.9)(43.6)
Other invested assets(58.6)(24.5)
Property and equipment and other(87.3)(85.2)
Subsidiaries, net of cash transferred— (15.2)
Change in short-term investments70.6 39.9 
Other0.7 0.6 
Net cash used in investing activities - discontinued operations— (114.8)
Net cash provided by investing activities107.0 33.3 
7



Assurant, Inc.
Consolidated Statements of Cash Flows (unaudited)
Six Months Ended June 30,
 20222021
Financing activities
Issuance of debt, net of issuance costs— 347.2 
Repayment of debt(75.9)(50.0)
Acquisition of common stock(466.6)(223.1)
Common stock dividends paid(76.0)(80.0)
Preferred stock dividends paid— (4.7)
Employee stock purchases and withholdings(6.4)(10.2)
Net cash provided by (used in) financing activities - discontinued operations— — 
Net cash used in financing activities(624.9)(20.8)
Effect of exchange rate changes on cash and cash equivalents - continuing operations(26.8)1.2 
Effect of exchange rate changes on cash and cash equivalents - discontinued operations— 0.5 
Effect of exchange rate changes on cash and cash equivalents(26.8)1.7 
Change in cash and cash equivalents(872.8)543.2 
Cash and cash equivalents at beginning of period2,054.8 2,228.6 
Cash and cash equivalents at end of period1,182.0 2,771.8 
Less: Cash and cash equivalents of discontinued operations at end of period— 25.8 
Cash and cash equivalents of continuing operations at end of period $1,182.0 $2,746.0 


See the accompanying Notes to Consolidated Financial Statements (unaudited)
8

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)



INDEX OF NOTES
 
Note
Number
 
Page
Number
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

1. Nature of Operations
Assurant, Inc. (the “Company”) is a leading global business services company that supports, protects and connects major consumer purchases. The Company supports the advancement of the connected world by partnering with the world’s leading brands to develop innovative solutions and to deliver an enhanced customer experience through mobile device solutions, extended service contracts, vehicle protection services, renters insurance, lender-placed insurance products and other specialty products. The Company operates in North America, Latin America, Europe and Asia Pacific through two operating segments: Global Lifestyle and Global Housing. Through its Global Lifestyle segment, the Company provides mobile device solutions, extended service products and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection and related services (referred to as “Global Automotive”). Through its Global Housing segment, the Company provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”).
The Company’s common stock is traded on the New York Stock Exchange under the symbol “AIZ”.

2. Basis of Presentation
The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements.
The interim financial data as of June 30, 2022 and for the three and six months ended June 30, 2022 and 2021 is unaudited. In the opinion of management, the interim data includes all adjustments necessary for a fair statement of the results for the interim periods. The unaudited interim Consolidated Financial Statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. Certain prior
9


period amounts have been revised to conform to the current year presentation, including the change to the segment measure of profitability described in Note 5. 
Operating results for the three and six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying unaudited interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.
Revision of Prior Period Financial Statements
In connection with the preparation of the Company’s consolidated statement of operations for the three months ended June 30, 2022, the Company identified an error related to reinsurance of claims and benefits payables within the Connected Living business unit in the Global Lifestyle segment occurring in late 2018 through the three months ended March 31, 2022. In accordance with SAB No. 99, “Materiality,” and SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the error and determined that the related impact was not material to the Company’s results for any prior period, but that correcting the cumulative impact of the error in the current period would be material to the results of operations for the three months ended June 30, 2022. Accordingly, and for comparability, the Company revised all prior periods impacted including the consolidated balance sheet as of December 31, 2021; and the consolidated statements of operations, comprehensive income and changes in equity, in each case, for the three- and six-month periods ended June 30, 2021, and cash flows for the six-month period ended June 30, 2021.
In addition, the Company corrected other unrelated immaterial errors which were previously recorded in the periods in which the Company identified them. A summary of revisions to the Company’s previously reported financial statements is presented in Note 17. The Company will also correct previously reported financial information for such errors in its future filings, as applicable.

3. Recent Accounting Pronouncements
Adopted
Facilitation of the Effects of Reference Rate Reform on Financial Reporting: In March 2020, the Financial Accounting Standards Board (the “FASB”) issued guidance which provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.
The relief is applicable only to legacy contracts if the amendments made to the agreements are solely for reference rate reform activities. The provisions must be applied consistently for all relevant transactions other than derivatives, which may be applied at a hedging relationship level. The guidance is effective upon issuance. The guidance on contract modifications is applied prospectively from any date beginning March 12, 2020. Unlike other topics, the provisions of this update are only available until December 31, 2022, when the reference rate replacement activity is expected to have been completed.
This standard is effective as of January 1, 2022, but has no impact on the Company’s consolidated financial statements as the Company currently has no contracts or hedging relationships for which the reference LIBOR or another rate is expected to be discontinued and a GAAP contract modification is required.
Improvements to Convertible Instruments and Contracts in an Entity’s Own Equity: In August 2020, the FASB issued guidance that simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The guidance removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more contracts in an entity’s own equity to qualify for it. The guidance also simplifies the diluted earnings per common share (“EPS”) calculation in the areas of convertible instruments and instruments that qualify for the derivatives scope exception for contracts in an entity’s own equity to address accounting for the guidance changes to the classification, recognition and measurement.
This standard is effective as of January 1, 2022, but has no impact on the Company’s consolidated financial statements as the Company currently has no convertible instruments or contracts in its own equity.
10

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

Not Yet Adopted
Targeted improvements to the accounting for long-duration contracts: In August 2018, the FASB issued guidance that provides targeted improvements to the accounting for long-duration contracts. The guidance includes the following primary changes: assumptions supporting benefit reserves will no longer be locked-in but must be updated at least annually with the impact of changes to the liability reflected in earnings (except for discount rates); the discount rate assumptions will be based on the upper-medium grade (low credit risk) fixed-income instrument yield instead of the earnings rate of invested assets; the discount rate must be evaluated at each reporting date and the impact of changes to the liability estimate as a result of updating the discount rate assumption is required to be recognized in other comprehensive income; the provision for adverse deviation is eliminated; and premium deficiency testing is eliminated. Other noteworthy changes include the following: differing models for amortizing deferred acquisition costs will become uniform for all long-duration contracts based on a constant rate over the expected term of the related in-force contracts; all market risk benefits associated with deposit contracts must be reported at fair value with changes reflected in income except for changes related to credit risk which will be recognized in other comprehensive income; and disclosures will be expanded to include disaggregated roll forwards of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions and methods used in measurement.
The guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. Generally, the amendments are applied retrospectively as of the beginning of the earliest period presented with two transition options available for changing the assumptions. With the sale of the disposed Global Preneed business in August 2021, the adoption of this standard is expected to have no material impact on the Company’s financial position and results of operations.  
Recognition and Measurement of Revenue Contracts with Customers Acquired in a Business Combination: In October 2021, the FASB issued guidance to improve comparability after a business combination is reported in the acquirer’s financial statements by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. Generally, the acquirer will recognize the acquired contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in the acquisition accounting. Under the amended guidance, the acquirer should account for the related revenue contracts as if it had originated the contracts. The amendments provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination.
The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendment is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The adoption of this standard is expected to have no material impact on the Company’s financial position and results of operations.
Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions: In June 2022, the FASB issued guidance on investments in equity securities measured at fair value that are subject to contractual restrictions preventing the sale of those securities. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. Disclosures will be required to provide investors with information about the restriction including the fair value of the equity securities subject to any contractual sale restrictions reflected in the balance sheet, the nature and remaining duration of such restrictions, and any circumstances that could cause a lapse in such restrictions.
The guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company plans to early adopt the standard if it invests in equity securities that have contractual restrictions preventing the sale of those securities prior to the effective date.


11

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

4. Dispositions
Sale of Global Preneed
On August 2, 2021, the Company completed its sale of the legal entities which comprise the businesses previously reported as the Global Preneed segment and certain businesses previously disposed of through reinsurance, which were previously reported in the Corporate and Other segment, to subsidiaries of CUNA Mutual Group for an aggregate purchase price at closing of $1.34 billion in cash.
The following table summarizes the components of net income from discontinued operations included in the consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
20212021
Revenues
Net earned premiums$18.8 $36.5 
Fees and other income39.9 77.4 
Net investment income72.7 144.7 
Net realized losses on investments and fair value changes to equity securities4.8 3.7 
Loss on disposal of businesses(2.0)(6.3)
Total revenues134.2 256.0 
Benefits, losses and expenses
Policyholder benefits74.1 148.1 
Selling, underwriting, general and administrative expenses35.7 72.4 
Total benefits, losses and expenses109.8 220.5 
Income from discontinued operations before income taxes24.4 35.5 
Benefit for income taxes5.5 2.3 
Net income from discontinued operations$18.9 $33.2 
Sale of John Alden Life Insurance Company
On April 1, 2022, the Company completed its sale of John Alden Life Insurance Company (“JALIC”), a run-off business reported in the Corporate and Other segment. Prior to the sale, JALIC met the criteria for held for sale presentation and, therefore, its assets and liabilities were recorded as held for sale in the December 31, 2021 consolidated balance sheet. The major classes of assets and liabilities held for sale included $915.8 million of future policy benefits and expenses, $881.6 million of reinsurance recoverables, $159.6 million of other investments and $117.2 million of claims and benefits payable as December 31, 2021.
Most of the $881.6 million reinsurance recoverables balance for JALIC, which was included in assets held for sale as of December 31, 2021 was reinsured with Employers Reassurance Corporation and was uncollateralized.

5. Segment Information
In conjunction with the transition of our new CEO and chief operating decision maker, the Company changed its segment measure of profitability for its reportable segments to an Adjusted EBITDA metric, as the primary measure used for purposes of making decisions about allocating resources to the segments and assessing performance, from segment net income from continuing operations, effective January 1, 2022. Prior period amounts have been revised to reflect the new segment measure of profitability.
Beginning with second quarter 2022, the Company changed the calculation of its segment measure of profitability, Adjusted EBITDA, to exclude certain businesses which the Company now expects to fully exit, including the long-tail commercial liability businesses in Global Housing (sharing economy and small commercial businesses), as well as certain legacy long-duration insurance policies within Global Lifestyle (collectively referred to as “non-core operations”), and present
12

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

them as a reconciling item to consolidated net income from continuing operations. The non-core operations have been or are in the process of being exited by the Company, but do not qualify as held for sale or discontinued operations under GAAP accounting guidance.
As of June 30, 2022, the Company had three reportable segments: Global Lifestyle, Global Housing and Corporate and Other. The Company defines Adjusted EBITDA as net income from continuing operations, excluding net realized gains (losses) on investments and fair value changes to equity securities, COVID-19 direct and incremental expenses, loss on extinguishment of debt, non-core operations (defined above), net income (loss) attributable to non-controlling interests, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities), as well as other highly variable or unusual items.
All prior period amounts have been revised, which impacts both segment Adjusted EBITDA and other adjustments under reconciling items to consolidated net income from continuing operations, but does not impact consolidated net income. The sharing economy and small commercial businesses, previously reported through the Company’s Global Housing segment, generated Adjusted EBITDA of $(37.2) million and $(43.3) million for the three and six months ended June 30, 2022, respectively, and Adjusted EBITDA of $0.6 million and $5.5 million for the three and six months ended June 30, 2021, respectively. The legacy long-duration insurance policies included in non-core operations and previously reported through the Company’s Global Lifestyle segment, generated Adjusted EBITDA of $0.5 million and $1.1 million for the three and six months ended June 30, 2022, respectively, and Adjusted EBITDA of $(0.1) million and $0.1 million for the three and six months ended June 30, 2021, respectively.
Segment Adjusted EBITDA was also revised for an error related to reinsurance of claims and benefits payables within the Connected Living business unit in the Global Lifestyle segment, and for other unrelated immaterial errors. See Note 2 for more information.

13

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

The following table presents segment Adjusted EBITDA with a reconciliation to net income attributable to common shareholders:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Adjusted EBITDA by segment:
Global Lifestyle$206.8 $184.2 $421.4 $369.7 
Global Housing75.2 132.4 191.7 220.0 
Corporate and Other(24.9)(16.9)(47.1)(44.8)
Reconciling items to consolidated net income from continuing operations:
Interest expense(27.2)(28.8)(54.1)(57.2)
Depreciation expense(21.8)(17.5)(42.1)(34.3)
Amortization of purchased intangible assets(17.0)(17.3)(34.6)(34.3)
Net realized (losses) gains on investments and fair value changes to equity securities(76.4)10.3 (138.8)11.1 
COVID-19 direct and incremental expenses(1.1)(2.2)(2.5)(5.2)
Loss on extinguishment of debt(0.9)— (0.9)— 
Non-core operations(36.7)0.5 (42.2)5.6 
Other adjustments(6.1)(5.2)(5.7)(6.1)
Loss attributable to non-controlling interest— 0.2 — — 
Total reconciling items(187.2)(60.0)(320.9)(120.4)
Income from continuing operations before income tax expense69.9 239.7 245.1 424.5 
Income tax expense17.7 52.6 43.9 96.6 
Net income from continuing operations $52.2 $187.1 $201.2 $327.9 


14

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

The Company’s net earned premiums, fees and other income by segment and product are as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Global Lifestyle:
Connected Living (1)$1,064.4 $1,080.1 $2,135.2 $2,127.8 
Global Automotive 918.9 855.6 1,808.0 1,668.0 
Total$1,983.3 $1,935.7 $3,943.2 $3,795.8 
Global Housing:
Lender-placed Insurance$272.9 $274.3 $539.7 $534.7 
Multifamily Housing122.2 122.1 242.1 239.5 
Specialty and Other100.6 100.4 199.9 202.3 
Total$495.7 $496.8 $981.7 $976.5 
(1)Effective January 1, 2022, the Connected Living line of business includes the previous Global Financial Services and Other line of business. Prior period amounts have been revised to reflect this change.
Net earned premiums, fees and other income for non-core operations were $14.9 million and $16.5 million for the three months ended June 30, 2022 and 2021, respectively, and $27.4 million and $31.9 million for the six months ended June 30, 2022 and 2021, respectively.
The following table presents total assets by segment:
June 30, 2022December 31, 2021
Global Lifestyle (1)$26,412.1 $26,120.9 
Global Housing (1)3,812.2 4,007.3 
Corporate and Other (2)1,504.4 3,792.4 
Segment assets $31,728.7 $33,920.6 
(1)Segment assets for Global Lifestyle and Global Housing do not include net unrealized gains (losses) on securities attributable to those segments, which are all included within Corporate and Other.
(2)Includes the assets for non-core operations of $310.5 million and $326.3 million as of June 30, 2022 and December 31, 2021, respectively.

6. Contract Revenues
The Company partners with clients to provide consumers with a diverse range of protection products and services. The Company’s revenues from protection products are accounted for as insurance contracts and are recognized over the term of the insurance protection provided. Revenues from service contracts and sales of products are recognized as the contractual performance obligations are satisfied or the products are delivered. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for performing the services or transferring products. If payments are received before the related revenue is recognized, the amount is recorded as unearned revenue or advance payment liabilities, until the performance obligations are satisfied or the products are transferred.
The disaggregated revenues from service contracts included in fees and other income on the consolidated statements of operations are $290.0 million and $301.1 million for Global Lifestyle and $21.2 million and $24.9 million for Global Housing for the three months ended June 30, 2022 and 2021, respectively. The disaggregated revenues from service contracts included in fees and other income on the consolidated statement of operations are $567.6 million and $466.1 million for Global Lifestyle and $43.6 million and $49.4 million for Global Housing for the six months ended June 30, 2022 and 2021, respectively.
Global Lifestyle
In the Company’s Global Lifestyle segment, revenues from service contracts and sales of products are primarily from the Company’s Connected Living business. Through partnerships with mobile carriers, the Company provides administrative
15

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

services related to its mobile device protection products, including program design and marketing strategy, risk management, data analytics, customer support and claims handling, supply chain and service delivery, repair and logistics, and device disposition. Administrative fees are generally billed monthly based on the volume of services provided during the billing period (for example, based on the number of mobile subscribers) with payment due within a short-term period. Each service or bundle of services, depending on the contract, is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer.
The Company also repairs, refurbishes and then sells mobile and other electronic devices, on behalf of its clients, for a bundled per unit fee. The entire processing of the device is considered one performance obligation with a standalone selling price and thus, the per unit fee is recognized when the products are sold. Payments are generally due prior to shipment or within a short-term period.
Global Housing
In the Company’s Global Housing segment, revenues from service contracts and sales of products are primarily from the Company’s Lender-placed Insurance business. Under the Company’s Lender-placed Insurance business, the Company provides loan and claim payment tracking services for lenders. The Company generally invoices its customers weekly or monthly based on the volume of services provided during the billing period with payment due within a short-term period. Each service is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer.
Contract Balances
The receivables and unearned revenue under these contracts were $320.5 million and $176.8 million, respectively, as of June 30, 2022, and $313.7 million and $191.5 million, respectively, as of December 31, 2021. These balances are included in premiums and accounts receivable and accounts payable and other liabilities, respectively, in the consolidated balance sheets. Revenue from service contracts and sales of products recognized during the three months ended June 30, 2022 and 2021 that was included in unearned revenue as of December 31, 2021 and 2020 was $26.4 million and $23.4 million, respectively. Revenue from service contracts and sales of products recognized during the six months ended June 30, 2022 and 2021 that was included in unearned revenue as of December 31, 2021 and 2020 was $49.0 million and $35.1 million, respectively.
In certain circumstances, the Company defers upfront commissions and other costs in connection with client contracts in excess of one year where the Company can demonstrate future economic benefit. For these contracts, expense is recognized as revenues are earned. The Company periodically assesses recoverability based on the performance of the related contracts. As of June 30, 2022 and December 31, 2021, the Company had approximately $86.8 million and $93.0 million, respectively, of such intangible assets attributed to service contracts that will be expensed over the term of the client contracts.


16

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

7. Investments
The following tables show the cost or amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value of the Company’s fixed maturity securities as of the dates indicated:
 June 30, 2022
 Cost or
Amortized
Cost
Allowance for Credit LossesGross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Fixed maturity securities:
U.S. government and government agencies and authorities$86.6 $— $0.4 $(4.5)$82.5 
States, municipalities and political subdivisions173.6 — 2.0 (10.9)164.7 
Foreign governments408.7 — 1.3 (21.4)388.6 
Asset-backed590.6 — 4.3 (32.8)562.1 
Commercial mortgage-backed450.7 — — (33.2)417.5 
Residential mortgage-backed551.8 — 1.7 (35.5)518.0 
U.S. corporate3,215.2 — 23.4 (245.4)2,993.2 
Foreign corporate1,299.1 — 6.1 (123.0)1,182.2 
Total fixed maturity securities$6,776.3 $— $39.2 $(506.7)$6,308.8 
 December 31, 2021
 Cost or
Amortized
Cost
Allowance for Credit LossesGross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
Fixed maturity securities:
U.S. government and government agencies and authorities$83.0 $— $2.1 $(0.1)$85.0 
States, municipalities and political subdivisions142.2 — 7.0 (0.7)148.5 
Foreign governments436.0 — 5.9 (4.2)437.7 
Asset-backed411.1 — 14.2 (2.3)423.0 
Commercial mortgage-backed466.7 — 10.3 (3.3)473.7 
Residential mortgage-backed578.4 — 25.2 (1.7)601.9 
U.S. corporate3,581.2 — 235.9 (14.0)3,803.1 
Foreign corporate1,205.3 — 46.0 (8.9)1,242.4 
Total fixed maturity securities$6,903.9 $— $346.6 $(35.2)$7,215.3 
The cost or amortized cost and fair value of fixed maturity securities as of June 30, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.
17

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

Cost or
Amortized Cost
Fair Value
Due in one year or less$212.2 $211.9 
Due after one year through five years1,731.5 1,683.1 
Due after five years through ten years2,192.6 2,013.5 
Due after ten years1,046.9 902.7 
Total5,183.2 4,811.2 
Asset-backed590.6 562.1 
Commercial mortgage-backed450.7 417.5 
Residential mortgage-backed551.8 518.0 
Total$6,776.3 $6,308.8 
The following table sets forth the net realized gains (losses) on investments and fair value changes to equity securities, including impairments, recognized in the consolidated statements of operations for the periods indicated: 
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities:
Fixed maturity securities $(22.6)$0.2 $(41.1)$3.2 
Equity securities (1)(54.0)7.2 (97.2)5.5 
Commercial mortgage loans on real estate— (0.1)0.2 0.2 
Other investments1.8 1.8 1.4 2.0 
Total net realized (losses) gains on investments related to sales and other and fair value changes to equity securities (74.8)9.1 (136.7)10.9 
Net realized (losses) gains related to impairments:
Fixed maturity securities(1.6)1.2 (1.6)1.2 
Other investments— — (0.5)(1.0)
Total net realized (losses) gains related to impairments(1.6)1.2 (2.1)0.2 
Total net realized (losses) gains on investments and fair value changes to equity securities$(76.4)$10.3 $(138.8)$11.1 
(1)Upward adjustments of $9.5 million, $19.5 million, $0.0 million and $2.1 million and impairments of $0.0 million, $0.0 million, $0.0 million and $1.0 million were realized on equity investments accounted for under the measurement alternative for the three and six months ended June 30, 2022 and 2021, respectively.
The following table sets forth the portion of fair value changes to equity securities held for the periods indicated:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net (losses) gains recognized on equity securities$(54.0)$7.2 $(97.2)$5.5 
Less: Net realized gains related to sales of equity securities8.4 0.1 20.2 1.0 
Total fair value changes to equity securities held (1)$(62.4)$7.1 $(117.4)$4.5 
(1)Three and six months ended June 30, 2022 included $44.2 million and $77.9 million of net losses from four equity positions that went public during 2021. The total fair value of these investments as of June 30, 2022 was $25.0 million, included in equity securities on the consolidated balance sheet.
Equity investments accounted for under the measurement alternative are included within other investments on the consolidated balance sheets. The following table summarizes information related to these investments:
18

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

June 30, 2022December 31, 2021
Initial cost$83.1 $74.4 
Cumulative upward adjustments58.6 42.7 
Cumulative downward adjustments (including impairments)(15.4)(15.4)
Carrying value$126.3 $101.7 
The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities as of June 30, 2022 and December 31, 2021 were as follows:
 June 30, 2022
 Less than 12 months12 Months or MoreTotal
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Fixed maturity securities:
U.S. government and government agencies and authorities$77.9 $(4.4)$0.7 $(0.1)$78.6 $(4.5)
States, municipalities and political subdivisions86.9 (9.5)6.1 (1.4)93.0 (10.9)
Foreign governments321.4 (19.9)16.1 (1.5)337.5 (21.4)
Asset-backed461.3 (30.0)42.0 (2.8)503.3 (32.8)
Commercial mortgage-backed386.0 (29.3)26.4 (3.9)412.4 (33.2)
Residential mortgage-backed408.7 (34.0)10.8 (1.5)419.5 (35.5)
U.S. corporate2,297.8 (218.6)86.5 (26.8)2,384.3 (245.4)
Foreign corporate986.4 (102.9)64.8 (20.1)1,051.2 (123.0)
Total fixed maturity securities$5,026.4 $(448.6)$253.4 $(58.1)$5,279.8 $(506.7)
 December 31, 2021
 Less than 12 months12 Months or MoreTotal
 Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Fixed maturity securities:
U.S. government and government agencies and authorities$31.5 $(0.1)$— $— $31.5 $(0.1)
States, municipalities and political subdivisions48.1 (0.7)— — 48.1 (0.7)
Foreign governments216.0 (4.1)4.0 (0.1)220.0 (4.2)
Asset-backed257.7 (2.1)9.8 (0.2)267.5 (2.3)
Commercial mortgage-backed274.8 (2.9)2.0 (0.4)276.8 (3.3)
Residential mortgage-backed94.0 (1.5)10.0 (0.2)104.0 (1.7)
U.S. corporate687.8 (13.1)15.2 (0.9)703.0 (14.0)
Foreign corporate394.0 (8.6)6.7 (0.3)400.7 (8.9)
Total fixed maturity securities$2,003.9 $(33.1)$47.7 $(2.1)$2,051.6 $(35.2)
Total gross unrealized losses represented approximately 10% and 2% of the aggregate fair value of the related securities as of June 30, 2022 and December 31, 2021, respectively. Approximately 89% and 94% of these gross unrealized losses had been in a continuous loss position for less than twelve months as of June 30, 2022 and December 31, 2021, respectively. The total gross unrealized losses are comprised of 3,518 and 1,202 individual securities as of June 30, 2022 and December 31, 2021, respectively. In accordance with its policy, the Company concluded that for these securities, the gross unrealized losses as of June 30, 2022 and December 31, 2021 were related to non-credit factors and therefore, did not recognize credit-related losses
19

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

during the three and six months ended June 30, 2022. Additionally, the Company currently does not intend to and is not required to sell these investments prior to an anticipated recovery in value.
The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. As of June 30, 2022, approximately 38% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Texas and Nevada. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans range in size from less than $0.1 million to $9.4 million as of June 30, 2022 and from $0.1 million to $9.6 million as of December 31, 2021.
Credit quality indicators for commercial mortgage loans are loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments and is commonly expressed as a ratio. The loan-to-value and debt-service coverage ratios are generally updated annually in the fourth quarter.
The following table presents the amortized cost basis of commercial mortgage loans, excluding the allowance for credit losses, by origination year for certain key credit quality indicators at June 30, 2022 and December 31, 2021.
June 30, 2022
Origination Year
20222021202020192018PriorTotal% of Total
Loan to value
ratios (1):
70% and less$40.5 $71.5 $— $— $— $91.4 $203.4 69.1 %
71% to 80%18.0 45.6 2.7 — 4.6 1.0 71.9 24.4 %
81% to 95%— 17.1 — — — — 17.1 5.8 %
Greater than 95%— — — — — 2.0 2.0 0.7 %
Total$58.5 $134.2 $2.7 $— $4.6 $94.4 $294.4 100.0 %
June 30, 2022
Origination Year
20222021202020192018PriorTotal% of Total
Debt-service coverage ratios (2):
Greater than 2.0$23.9 $60.4 $2.7 $— $— $59.4 $146.4 49.7 %
1.5 to 2.027.0 34.0 — — 4.6 20.0 85.6 29.1 %
1.0 to 1.57.6 39.8 — — — 9.4 56.8 19.3 %
Less than 1.0— — — — — 5.6 5.6 1.9 %
Total$58.5 $134.2 $2.7 $— $4.6 $94.4 $294.4 100.0 %
20

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

December 31, 2021
Origination Year
20212020201920182017PriorTotal% of Total
Loan to value
ratios (1):
70% and less$71.7 $5.6 $— $— $4.0 $99.8 $181.1 70.3 %
71% to 80%61.8 — — 4.7 — 1.0 67.5 26.2 %
81% to 95%— — — — — 1.1 1.1 0.4 %
Greater than 95%— — — — 5.8 2.1 7.9 3.1 %
Total$133.5 $5.6 $— $4.7 $9.8 $104.0 $257.6 100.0 %
December 31, 2021
Origination Year
20212020201920182017PriorTotal% of Total
Debt-service coverage ratios (2):
Greater than 2.0$59.3 $5.6 $— $— $— $70.5 $135.4 52.6 %
1.5 to 2.034.1 — — 4.7 4.0 17.5 60.3 23.4 %
1.0 to 1.540.1 — — — — 9.9 50.0 19.4 %
Less than 1.0— — — — 5.8 6.1 11.9 4.6 %
Total$133.5 $5.6 $— $4.7 $9.8 $104.0 $257.6 100.0 %
(1)Loan-to-value ratio derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated at least annually.
(2)Debt-service coverage ratio calculated using most recent reported operating results from property operators divided by annual debt service coverage.

8. Fair Value Disclosures
Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures
The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company has categorized its recurring fair value basis financial assets and liabilities into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique.
The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and takes into account factors specific to the asset or liability.
The levels of the fair value hierarchy are described below:
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access.
Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that
21

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

are not active and inputs other than quoted prices that are observable in the marketplace for the asset or liability. The observable inputs are used in valuation models to calculate the fair value for the asset or liability.
Level 3 inputs are unobservable but are significant to the fair value measurement for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.
The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of June 30, 2022 and December 31, 2021. The amounts presented below for short-term investments, other investments, cash equivalents, other assets, assets held in and liabilities related to separate accounts and other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan (“AIP”), the American Security Insurance Company Investment Plan, the Assurant Deferred Compensation Plan and other derivatives. Other liabilities are comprised of investments in the AIP, contingent considerations related to business combinations and other derivatives. The fair value amount and the majority of the associated levels presented for other investments and assets and liabilities held in separate accounts are received directly from third parties.  
 June 30, 2022 
 TotalLevel 1 Level 2 Level 3 
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities$82.5 $—   $82.5   $—   
States, municipalities and political subdivisions164.7 —   164.7   —   
Foreign governments388.6 —   388.6   —   
Asset-backed562.1 —   562.1   — 
Commercial mortgage-backed417.5 —   417.5   —   
Residential mortgage-backed518.0 —   518.0   —   
U.S. corporate2,993.2 — 2,990.1 3.1 
Foreign corporate1,182.2 —   1,179.0   3.2   
Equity securities:
Mutual funds34.5 34.5 — — 
Common stocks40.3 38.4   0.7   1.2 
Non-redeemable preferred stocks236.2 —   236.2   —   
Short-term investments139.7 132.3 (2)7.4 —   
Other investments66.3 65.7 (1)— 0.6 
Cash equivalents449.2 434.5 (2)14.7 (3)—   
Other assets6.4 — 6.4 (4)— 
Assets held in separate accounts10.2 6.7 (1)3.5 (3)—   
Total financial assets$7,291.6 $712.1   $6,571.4   $8.1   
Financial Liabilities
Other liabilities$69.4 $65.7 (1)$— $3.7 (5)
Liabilities related to separate accounts10.2 6.7 (1)3.5 (3)— 
  
Total financial liabilities$79.6 $72.4   $3.5 
  
$3.7 
  

22

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

 December 31, 2021 
 TotalLevel 1 Level 2 Level 3 
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities$85.0 $—  $85.0  $—  
States, municipalities and political subdivisions148.5 —  148.5  —  
Foreign governments437.7 —  437.7  —  
Asset-backed423.0 —  423.0  —  
Commercial mortgage-backed473.7 —  473.7  —  
Residential mortgage-backed601.9 —  601.9  —  
U.S. corporate3,803.1 — 3,799.7 3.4 
Foreign corporate1,242.4 —  1,238.8  3.6  
Equity securities:
Mutual funds33.3 33.3 — — 
Common stocks151.1 15.5  0.7  134.9 (6)
Non-redeemable preferred stocks261.3 —  261.3  —  
Short-term investments207.2 200.1 (2)7.1 —  
Other investments72.6 72.4 (1)— 0.2 
Cash equivalents1,243.9 1,190.9 (2)53.0 (3)—  
Other assets1.7 —   1.7 (4)— 
Assets held in separate accounts11.8 7.7 (1)4.1 (3)—  
Total financial assets$9,198.2 $1,519.9  $7,536.2  $142.1  
Financial Liabilities
Other liabilities$76.4 $72.4 (1)$— $4.0 (5)
Liabilities related to separate accounts11.8 7.7 (1)4.1 (3)—  
Total financial liabilities$88.2 $80.1  $4.1  $4.0  
(1)Primarily includes mutual funds and related obligations.
(2)Primarily includes money market funds.
(3)Primarily includes fixed maturity securities and related obligations.
(4)Primarily includes derivatives.
(5)Includes contingent consideration liabilities and other derivatives.
(6)These equity securities are subject to lock up agreements and therefore an illiquidity discount was applied to the exchange traded price, which includes significant unobservable inputs.
23

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

The following tables disclose the carrying value, fair value and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of the dates indicated:
 June 30, 2022
  Fair Value
 Carrying
Value
TotalLevel 1Level 2Level 3
Financial Assets
Commercial mortgage loans on real estate$293.5 $283.6 $— $— $283.6 
Other investments5.2 5.2 2.0 — 3.2 
Other assets18.7 18.7 — — 18.7 
Total financial assets$317.4 $307.5 $2.0 $— $305.5 
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)$8.4 $8.2 $— $— $8.2 
Funds withheld under reinsurance338.7 338.7 338.7 — — 
Debt2,128.8 2,026.3 — 2,026.3 — 
Total financial liabilities$2,475.9 $2,373.2 $338.7 $2,026.3 $8.2 
 December 31, 2021
  Fair Value
  
Carrying
Value
TotalLevel 1Level 2Level 3
Financial Assets
Commercial mortgage loans on real estate$256.5 $266.0 $— $— $266.0 
Other investments4.2 4.2 2.0 — 2.2 
Other assets24.9 24.9 — — 24.9 
Total financial assets$285.6 $295.1 $2.0 $— $293.1 
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)$8.5 $9.6 $— $— $9.6 
Funds withheld under reinsurance364.2 364.2 364.2 — — 
Debt2,202.5 2,456.3 — 2,456.3 — 
Total financial liabilities$2,575.2 $2,830.1 $364.2 $2,456.3 $9.6 
(1)Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the tables above.

9. Deferred Acquisition Costs 
The following table discloses information about deferred acquisition costs as of the dates indicated:
For the Three Months Ended June 30,For the Six Months Ended June 30,
 2022202120222021
Beginning balance$9,025.4 $7,649.7 $8,811.0 $7,393.5 
Costs deferred1,233.6 1,331.2 2,337.5 2,370.5 
Amortization(900.0)(844.3)(1,789.5)(1,627.4)
Ending balance$9,359.0 $8,136.6 $9,359.0 $8,136.6 
24

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)


10. Reserves
Reserve Roll Forward
The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and is comprised of case and incurred but not reported (“IBNR”) reserves.
Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively.
The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented.
For the Six Months Ended June 30,
20222021
Claims and benefits payable, at beginning of period$1,604.8 $1,619.9 
Less: Reinsurance ceded and other(825.9)(850.5)
Net claims and benefits payable, at beginning of period778.9 769.4 
Incurred losses and loss adjustment expenses related to:
Current year1,070.3 1,106.2 
Prior years19.7 (39.4)
Total incurred losses and loss adjustment expenses1,090.0 1,066.8 
Paid losses and loss adjustment expenses related to:
Current year631.6 688.1 
Prior years383.5 370.5 
Total paid losses and loss adjustment expenses1,015.1 1,058.6 
Net claims and benefits payable, at end of period853.8 777.6 
Plus: Reinsurance ceded and other (1) 688.8 831.3 
Claims and benefits payable, at end of period (1)$1,542.6 $1,608.9 
(1)Includes reinsurance recoverables and claims and benefits payable of $56.0 million and $76.1 million as of June 30, 2022 and 2021, respectively, which was ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program.
The Company experienced net unfavorable loss development for the six months ended June 30, 2022 of $19.7 million and net favorable loss development of $39.4 million for the six months ended June 30, 2021 as presented in the roll forward table above. The unfavorable development is attributed to the sharing economy and small commercial lines of business, now reported in the Corporate and Other segment within non-core operations.
Global Lifestyle contributed $40.7 million and $35.0 million to the net favorable loss development for the six months ended June 30, 2022 and 2021, respectively. The net favorable loss development in both periods was attributable to nearly all lines of business across most of the Company’s regions with a concentration on more recent accident years and based on emerging evaluations regarding loss experience each period. For the six months ended June 30, 2022, Global Automotive also experienced favorable loss development from ancillary products due to the strong used vehicle market. Many of these contracts and products contain retrospective commission (profit sharing) provisions that would result in offsetting increases or decreases in expense dependent on if the development was favorable or unfavorable.
Global Housing contributed $15.2 million of net unfavorable loss development for the six months ended June 30, 2022 and $5.7 million of net favorable development for the six months ended June 30, 2021. The net unfavorable loss development for the six months ended June 30, 2022 was comprised of $1.5 million from non-catastrophe losses and $13.7 million from prior catastrophe events. Hurricane Eta from accident year 2020 drove the unfavorable development for catastrophes where the
25

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

loss development pattern was longer than expected and the average claim severities were higher than expected. For non-catastrophe losses, Lender-placed Insurance products developed unfavorably due to inflationary impacts on severity, partially offset by favorable development across other products. The net favorable loss development for the six months ended June 30, 2021 were attributable to multiple lines of business with a concentration in recent accident years.
The sharing economy and small commercial lines of business, reported within non-core operations, contributed $49.3 million and $5.3 million in unfavorable development during the six months ended June 30, 2022 and 2021, respectively. The $49.3 million in unfavorable development consists of $38.0 million from sharing economy and $11.3 million from small commercial. The unfavorable development from sharing economy was driven by emerging adverse claim development trends on known claims as well as reserve assumption revisions to reflect relevant industry benchmarks. Both sharing economy and small commercial experienced unfavorable development on known claims driven by social inflation and the release of the backlog from courts reopening after COVID-19. All others contributed $4.1 million and $4.0 million of net favorable loss development for the six months ended June 30, 2022 and 2021 respectively.


11. Debt
Debt Redemption
In June 2022, the Company redeemed $75.0 million of the $300.0 million then outstanding aggregate principal amount of its 4.20% Senior Notes due September 2023 at a make-whole premium plus accrued and unpaid interest to the redemption date. In connection with the redemption, the Company recognized a loss on extinguishment of debt of $0.9 million.

12. Accumulated Other Comprehensive Income
Certain amounts included in the consolidated statements of comprehensive income are net of reclassification adjustments. The following tables summarize those reclassification adjustments (net of taxes) for the periods indicated: 

 Three Months Ended June 30, 2022
 Foreign
currency
translation
adjustment
Net unrealized
losses on
investments
Net unrealized gains on derivative transactionsUnamortized net losses on Pension PlansAccumulated
other
comprehensive
loss
Balance at March 31, 2022$(325.6)$(78.2)$11.8 $(93.3)$(485.3)
Change in accumulated other comprehensive income (loss) before reclassifications(41.9)(305.0)— (0.6)(347.5)
Amounts reclassified from accumulated other comprehensive income (loss)— 13.1 (0.7)(1.8)10.6 
Net current-period other comprehensive income (loss)(41.9)(291.9)(0.7)(2.4)(336.9)
Balance at June 30, 2022$(367.5)$(370.1)$11.1 $(95.7)$(822.2)
 Three Months Ended June 30, 2021
 Foreign
currency
translation
adjustment
Net unrealized
gains on
investments
Net unrealized gains on derivative transactionsUnamortized net losses on Pension PlansAccumulated
other
comprehensive
income
Balance at March 31, 2021$(288.4)$887.3 $14.1 $(108.5)$504.5 
Change in accumulated other comprehensive income (loss) before reclassifications13.6 90.0 — 0.6 104.2 
Amounts reclassified from accumulated other comprehensive income (loss)— (2.8)(0.6)(1.3)(4.7)
Net current-period other comprehensive income (loss)13.6 87.2 (0.6)(0.7)99.5 
Balance at June 30, 2021$(274.8)$974.5 $13.5 $(109.2)$604.0 
26

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

 Six Months Ended June 30, 2022
 Foreign
currency
translation
adjustment
Net unrealized
losses on
investments
Net unrealized gains on derivative transactionsUnamortized net losses on Pension PlansAccumulated
other
comprehensive
loss
Balance at December 31, 2021$(326.9)$256.6 $12.4 $(92.1)$(150.0)
Change in accumulated other comprehensive income (loss) before reclassifications(40.6)(652.8)— — (693.4)
Amounts reclassified from accumulated other comprehensive income (loss) (1)— 26.1 (1.3)(3.6)21.2 
Net current-period other comprehensive income (loss)(40.6)(626.7)(1.3)(3.6)(672.2)
Balance at June 30, 2022$(367.5)$(370.1)$11.1 $(95.7)$(822.2)
 Six Months Ended June 30, 2021
 Foreign
currency
translation
adjustment
Net unrealized
gains on
investments
Net unrealized gains on derivative transactionsUnamortized net losses on Pension PlansAccumulated
other
comprehensive
income
Balance at December 31, 2020$(295.6)$1,097.6 $14.7 $(106.9)$709.8 
Change in accumulated other comprehensive income (loss) before reclassifications20.8 (117.9)— 0.3 (96.8)
Amounts reclassified from accumulated other comprehensive income (loss)— (5.2)(1.2)(2.6)(9.0)
Net current-period other
comprehensive income (loss)
20.8 (123.1)(1.2)(2.3)(105.8)
Balance at June 30, 2021$(274.8)$974.5 $13.5 $(109.2)$604.0 
27

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

The following tables summarize the reclassifications out of accumulated other comprehensive income (“AOCI”) for the periods indicated:
Details about accumulated other comprehensive income componentsAmount reclassified from
accumulated other
comprehensive income
Affected line item in the
statement where net
income is presented
 Three Months Ended June 30, 
 20222021 
Net unrealized losses (gains) on investments$16.6 $(3.4)Net realized losses (gains) on investments
(3.5)0.6 Provision for income taxes
$13.1 $(2.8)Net of tax
Net unrealized gains on derivative transactions$(0.9)$(0.7)Interest expense
0.2 0.1 Provision for income taxes
$(0.7)$(0.6)Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:
Amortization of net loss$1.1 $1.8 (1)
Amortization of prior service credit(3.4)(3.4)(1)
(2.3)(1.6)
0.5 0.3 Provision for income taxes
$(1.8)$(1.3)Net of tax
Total reclassifications for the period$10.6 $(4.7)Net of tax
Details about accumulated other comprehensive income componentsAmount reclassified from
accumulated other
comprehensive income
Affected line item in the
statement where net
income is presented
Six Months Ended June 30,
20222021
Net unrealized losses (gains) on investments$33.0 $(6.5)Net realized losses (gains) on investments
(6.9)1.3 Provision for income taxes
$26.1 $(5.2)Net of tax
Net unrealized gains on derivative transactions$(1.6)$(1.4)Interest expense
0.3 0.2 Provision for income taxes
$(1.3)$(1.2)Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:
Amortization of net loss$2.2 $3.6 (1)
Amortization of prior service credit(6.8)(6.8)(1)
(4.6)(3.2)
1.0 0.6 Provision for income taxes
$(3.6)$(2.6)Net of tax
Total reclassifications for the period$21.2 $(9.0)Net of tax
(1)These AOCI components are included in the computation of net periodic pension cost. For additional information, see Note 15.

28

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

13. Equity Transactions
Mandatory Convertible Preferred Stock (“MCPS”)
In March 2018, the Company issued 2,875,000 shares of the MCPS, with a par value of $1.00 per share, at a public offering price of $100.00 per share. Each outstanding share of MCPS converted in March 2021 into 0.9405 of common shares, or 2,703,911 common shares in total plus an immaterial amount of cash in lieu of fractional shares. The Company used a portion of its treasury stock for the common shares, using the average cost method to account for the reissuance of such shares.
Dividends on the MCPS were payable on a cumulative basis when, as and if declared, at an annual rate of 6.50% of the liquidation preference of $100.00 per share. The Company paid preferred stock dividends of $4.7 million for the six months ended June 30, 2021.

14. Earnings Per Common Share
The following table presents net income, the weighted average common shares used in calculating basic EPS and those used in calculating diluted EPS for each period presented below. Diluted EPS reflects the incremental common shares from: (1) common shares issuable upon vesting of performance share units (“PSUs”) and the purchase of shares under the Employee Stock Purchase Plan (the “ESPP”) using the treasury stock method; and (2) common shares issuable upon the conversion of the MCPS using the if-converted method. The outstanding restricted stock units (“RSUs”) have non-forfeitable rights to dividend equivalents and are therefore included in calculating basic and diluted EPS under the two-class method.
29

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Numerator
Net income from continuing operations$52.2 $187.1 $201.2 $327.9 
Less: Net loss attributable to non-controlling interest— (0.2)— — 
Net income from continuing operations attributable to stockholders52.2 186.9 201.2 327.9 
Less: Preferred stock dividends— — — (4.7)
Net income from continuing operations attributable to common stockholders52.2 186.9 201.2 323.2 
Less: Common stock dividends paid(38.6)(41.8)(76.0)(80.0)
Undistributed earnings$13.6 $145.1 $125.2 $243.2 
Net income from continuing operations attributable to common stockholders$52.2 $186.9 $201.2 $323.2 
Add: Net income from discontinued operations— 18.9 — 33.2 
Net income attributable to common stockholders$52.2 $205.8 $201.2 $356.4 
Denominator
Weighted average common shares outstanding used in basic per common share calculations54,607,321 60,990,609 55,190,104 60,096,711 
Incremental common shares from:
PSUs361,287 286,233 427,503 334,904 
ESPP46,339 45,714 46,339 45,714 
MCPS— — — 1,076,673 
Weighted average common shares outstanding used in diluted per common share calculations55,014,947 61,322,556 55,663,946 61,554,002 
Earnings per common share - Basic
Distributed earnings$0.71 $0.69 $1.38 $1.33 
Undistributed earnings0.25 2.38 2.27 4.05 
Net income from continuing operations0.96 3.07 3.65 5.38 
Net income from discontinued operations— 0.31 — 0.55 
Net income attributable to common stockholders$0.96 $3.38 $3.65 $5.93 
Earnings per common share - Diluted
Distributed earnings$0.70 $0.68 $1.36 $1.30 
Undistributed earnings0.25 2.37 2.25 4.03 
Net income from continuing operations0.95 3.05 3.61 5.33 
Net income from discontinued operations— 0.31 — 0.54 
Net income attributable to common stockholders$0.95 $3.36 $3.61 $5.87 
Average PSUs totaling 82,222 and 1,590 for the three months ended June 30, 2022 and 2021, respectively, were anti-dilutive and thus not included in the computation of diluted EPS under the treasury stock method. Average PSUs totaling 48,673 and 35,164 for the six months ended June 30, 2022 and 2021, respectively, were anti-dilutive and thus not included in the computation of diluted EPS under the treasury stock method.

15. Retirement and Other Employee Benefits
The Company and its subsidiaries participate in a non-contributory, qualified defined benefit pension plan (“Assurant Pension Plan”) covering substantially all employees prior to closing to new hires on January 1, 2014. The Company also has various non-contributory, non-qualified supplemental plans covering certain employees, including the Assurant Executive
30

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

Pension Plan and the Assurant Supplemental Executive Retirement Plan. The qualified and non-qualified plans are referred to as “Pension Benefits” unless otherwise noted. In addition, the Company provides certain life and health care benefits (“Retirement Health Benefits”) for retired employees and their dependents. The Pension Benefits and Retirement Health Benefits (together, the “Plans”) were frozen on March 1, 2016.
In February 2020, the Company amended the Retirement Health Benefits to terminate effective December 31, 2024 (the “Termination Date”). Benefits will be paid up to the Termination Date. The Retirement Health Benefits obligations were re-measured using a discount rate of 1.55%, selected based on a cash flow analysis using a bond yield curve as of February 29, 2020, and the fair market value of the Retirement Health Benefits assets as of February 29, 2020. The remeasurement resulted in a reduction to the Retirement Health Benefits obligations of $65.6 million and a corresponding prior service credit in AOCI, which will be reclassified from AOCI as it is amortized in the net periodic benefit cost over the remaining period until the Termination Date.
The following tables present the components of net periodic benefit cost for the Plans for the three and six months ended June 30, 2022 and 2021: 
 Qualified Pension BenefitsUnfunded Non-qualified 
Pension Benefits
Retirement Health
Benefits
 For the Three Months Ended June 30,For the Three Months Ended June 30,For the Three Months Ended June 30,
 202220212022202120222021
Interest cost$4.2 $3.5 $0.3 $0.3 $0.1 $— 
Expected return on plan assets(6.9)(6.9)— — (0.4)(0.4)
Amortization of prior service credit— — — — (3.4)(3.4)
Amortization of net loss (gain)0.7 1.2 0.6 0.8 (0.2)(0.1)
Net periodic benefit cost$(2.0)$(2.2)$0.9 $1.1 $(3.9)$(3.9)
 Qualified Pension BenefitsUnfunded Nonqualified 
Pension Benefits
Retirement Health
Benefits
 For the Six Months Ended June 30,For the Six Months Ended June 30,For the Six Months Ended June 30,
 202220212022202120222021
Interest cost$8.4 $7.0 $0.7 $0.6 $0.1 $— 
Expected return on plan assets(13.8)(13.8)— — (0.7)(0.8)
Amortization of prior service credit— — — — (6.8)(6.8)
Amortization of net loss (gain)1.5 2.4 1.1 1.6 (0.4)(0.2)
Net periodic benefit cost$(3.9)$(4.4)$1.8 $2.2 $(7.8)$(7.8)
 The Assurant Pension Plan funded status was $76.9 million at June 30, 2022 and $74.8 million at December 31, 2021 (based on the fair value of the assets compared to the accumulated benefit obligation). This equates to a 113% and 110% funded status at June 30, 2022 and December 31, 2021, respectively. During the six months ended June 30, 2022, no cash was contributed to the Assurant Pension Plan. Due to the Assurant Pension Plan’s current funded status, no additional cash is expected to be contributed to the Assurant Pension Plan over the remainder of 2022.

16. Commitments and Contingencies
Letters of Credit
In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which the Company is the reinsurer. These letters of credit are supported by commitments under which the Company is required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. The Company had $7.1 million and $7.2 million of letters of credit outstanding as of June 30, 2022 and December 31, 2021, respectively.
31

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

Legal and Regulatory Matters
The Company is involved in a variety of litigation and legal and regulatory proceedings relating to its current and past business operations and, from time to time, it may become involved in other such actions. The Company continues to defend itself vigorously in these proceedings. The Company has participated and may participate in settlements on terms that the Company considers reasonable.
The Company has established an accrued liability for certain legal and regulatory proceedings. The possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and uncertain. Consequently, no estimate can be made of any possible loss or range of loss in excess of the accrual. Although the Company cannot predict the outcome of any pending legal or regulatory proceeding, or the potential losses, fines, penalties or equitable relief, if any, that may result, it is possible that such outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, on the basis of currently available information, management does not believe that the pending matters are likely to have a material adverse effect, individually or in the aggregate, on the Company’s financial condition.

17. Revision of Prior Period Financial Statements
The Company revised certain prior period financial statements for an error related to reinsurance of claims and benefits payables within the Connected Living business unit in the Global Lifestyle segment occurring in late 2018 through first quarter 2022 that resulted in an understatement of policyholder benefits and an overstatement of net income. See Note 2 for additional information. In addition, the Company has corrected other unrelated immaterial errors which were previously recorded in the periods in which the Company identified them.
Recording the cumulative impact of the errors in the second quarter financials of 2022 would have a material impact on the results of operation for the quarter. A summary of revisions to our previously reported financial statements is presented below (in millions, except for per share data).

Revised Consolidated Balance Sheet

As of December 31, 2021
As ReportedAdjustmentAs Revised
Reinsurance recoverables$6,178.9 $2.3 $6,181.2 
Other Assets 692.1 6.8 698.9 
Total assets33,911.5 9.1 33,920.6 
Claims and benefits payable1,595.9 8.9 1,604.8 
Reinsurance balances payable420.4 25.8 446.2 
Total liabilities28,421.8 34.7 28,456.5 
Retained Earnings4,066.8 (25.6)4,041.2 
Total Assurant, Inc. stockholders’ equity5,489.7 (25.6)5,464.1 
Total equity5,489.7 (25.6)5,464.1 
Total liabilities and equity33,911.5 9.1 33,920.6 



Revised Consolidated Statements of Operations

32


Three Months Ended June 30, 2021Six Months Ended June 30, 2021
As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs Revised
Policyholder benefits$538.3 $(3.1)$535.2 $1,067.0 $(0.2)$1,066.8 
Underwriting, general and administrative expenses747.2 — 747.2 1,482.9 5.4 1,488.3 
Total benefits, losses and expenses2,305.7 (3.1)2,302.6 4,545.2 5.2 4,550.4 
Income from continuing operations before income tax expense236.6 3.1 239.7 429.7 (5.2)424.5 
Income tax expense51.9 0.7 52.6 96.5 0.1 96.6 
Net income from continuing operations184.7 2.4 187.1 333.2 (5.3)327.9 
Net income203.6 2.4 206.0 366.4 (5.3)361.1 
Net income attributable to stockholders203.4 2.4 205.8 366.4 (5.3)361.1 
Net income attributable to common stockholders203.4 2.4 205.8 361.7 (5.3)356.4 
Basic earnings per share from continuing operations3.03 0.04 3.07 5.47 (0.09)5.38 
Basic earnings per share attributable to common stockholders3.34 0.04 3.38 6.02 (0.09)5.93 
Diluted earnings per share from continuing operations3.01 0.04 3.05 5.41 (0.08)5.33 
Diluted earnings per share attributable to common stockholders3.32 0.04 3.36 5.95 (0.08)5.87 


Revised Consolidated Statements of Comprehensive Income
Three Months Ended June 30, 2021Six Months Ended June 30, 2021
As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs Revised
Net Income$203.6 $2.4 $206.0 $366.4 $(5.3)$361.1 
Total comprehensive income303.1 2.4 305.5 260.6 (5.3)255.3 
Total comprehensive income attributable to stockholders302.9 2.4 305.3 260.6 (5.3)255.3 


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Revised Consolidated Statements of Changes in Equity

Three Months Ended June 30, 2021Six Months Ended June 30, 2021
As ReportedAdjustmentAs RevisedAs ReportedAdjustmentAs Revised
Beginning equity$5,825.6 $(22.9)$5,802.7 $5,954.8 $(15.2)$5,939.6 
Net Income$203.6 $2.4 $206.0 $366.4 $(5.3)$361.1 
Ending equity5,908.4 (20.5)5,887.9 5,908.4 (20.5)5,887.9 

Revised Consolidated Statements of Cash Flows
Six Months Ended June 30, 2021
As ReportedAdjustmentAs revised
Operating activities
Net Income Attributable to Stockholders
$366.4 $(5.3)$361.1 
Change in insurance policy reserves and expenses626.4 (3.3)623.1 
Change in reinsurance recoverable(114.7)(0.6)(115.3)
Change in reinsurance balance payable85.4 3.8 89.2 
Change in deferred acquisition costs and value of business acquired(430.3)5.5 (424.8)
Change in taxes payable24.5 0.1 24.6 
Change in other assets and other liabilities(45.6)(3.2)(48.8)
Other(7.9)3.0 (4.9)
Net cash (used in) provided by operating activities529.0 — 529.0 



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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
(In millions, except number of shares and per share amounts)
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the annual audited consolidated financial statements for the year ended December 31, 2021 and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2021 (the “2021 Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited consolidated financial statements for the three and six months ended June 30, 2022 and accompanying notes (the “Consolidated Financial Statements”) included elsewhere in this Quarterly Report on Form 10-Q (this “Report”). The following discussion and analysis covers the three and six months ended June 30, 2022 (“Second Quarter 2022” and “Six Months 2022”) and the three and six months ended June 30, 2021 (“Second Quarter 2021” and “Six Months 2021”).
Some of the statements in this Report, including our business and financial plans and any statements regarding our anticipated future financial performance, business prospects, growth and operating strategies and similar matters, may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these statements by the use of words such as “outlook,” “objective,” “will,” “may,” “can,” “anticipates,” “expects,” “estimates,” “projects,” “intends,” “plans,” “believes,” “targets,” “forecasts,” “potential,” “approximately,” and the negative version of those words and other words and terms with a similar meaning. Any forward-looking statements contained in this Report are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that our future plans, estimates or expectations will be achieved. Our actual results might differ materially from those projected in the forward-looking statements. We undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments. The following factors could cause our actual results to differ materially from those currently estimated by management:
(i)the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues;
(ii)significant competitive pressures, changes in customer preferences and disruption;
(iii)the failure to execute our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce;
(iv)the failure to find suitable acquisitions at attractive prices, integrate acquired businesses effectively or identify new areas for organic growth;
(v)our inability to recover should we experience a business continuity event;
(vi)the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;
(vii)risks related to our international operations;
(viii)declines in the value of mobile devices, or export compliance or other risks in our mobile business;
(ix)our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;
(x)risks associated with joint ventures, franchises and investments in which we share ownership and management with third parties;
(xi)the impact of catastrophe and non-catastrophe losses, including as a result of the current inflationary environment and climate change;
(xii)negative publicity relating to our business or industry;
(xiii)the impact of general economic, financial market and political conditions and conditions in the markets in which we operate, including the current inflationary environment (that has increased the costs of paying claims, including for materials and labor, as well as our employee wages), any prolonged recessionary environment and the conflict in Ukraine;
(xiv)the impact of the COVID-19 pandemic and measures taken in response thereto;
(xv)the adequacy of reserves established for claims and our inability to accurately predict and price for claims;
(xvi)a decline in financial strength ratings of our insurance subsidiaries or in our corporate senior debt ratings;
(xvii)fluctuations in exchange rates;
(xviii)an impairment of goodwill or other intangible assets;
35

(xix)the failure to maintain effective internal control over financial reporting;
(xx)unfavorable conditions in the capital and credit markets;
(xxi)a decrease in the value of our investment portfolio, including due to market, credit and liquidity risks, and changes in interest rates;
(xxii)an impairment in the value of our deferred tax assets;
(xxiii)the unavailability or inadequacy of reinsurance coverage and the credit risk of reinsurers, including those to whom we have sold business through reinsurance;
(xxiv)the credit risk of some of our agents, third-party administrators and clients;
(xxv)the inability of our subsidiaries to pay sufficient dividends to the holding company and limitations on our ability to declare and pay dividends or repurchase shares;
(xxvi)limitations in the analytical models we use to assist in our decision-making;
(xxvii)the failure to effectively maintain and modernize our information technology systems and infrastructure, or the failure to integrate those of acquired businesses;
(xxviii)breaches of our information systems or those of third parties with whom we do business, or the failure to protect the security of data in such systems, including due to cyberattacks and as a result of working remotely;
(xxix)the costs of complying with, or the failure to comply with, extensive laws and regulations to which we are subject, including those related to privacy, data security, data protection or tax;
(xxx)the impact of litigation and regulatory actions;
(xxxi)reductions or deferrals in the insurance premiums we charge;
(xxxii)changes in insurance, tax and other regulations;
(xxxiii)volatility in our common stock price and trading volume; and
(xxxiv)employee misconduct.
For additional information on factors that could affect our actual results, please refer to “Critical Factors Affecting Results” below and in Item 7 of our 2021 Annual Report, and “Item 1A—Risk Factors” below and in our 2021 Annual Report.
Reportable Segments
As of June 30, 2022, we had three reportable segments which are defined based on the manner in which the Company’s chief operating decision maker, our Chief Executive Officer (“CEO”), reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered:
Global Lifestyle: includes mobile device solutions, extended service products and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection and related services (referred to as “Global Automotive”);
Global Housing: includes lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”); and
Corporate and Other: includes corporate employee-related expenses and activities of the holding company.
In conjunction with the transition of our new CEO and chief operating decision maker, we changed our segment measure of profitability for its reportable segments to an Adjusted EBITDA metric, as the primary measure used for purposes of making decisions about allocating resources to the segments and assessing performance, from segment net income from continuing operations, effective January 1, 2022. Prior period amounts have been revised to reflect the new segment measure of profitability.
We define Adjusted EBITDA as net income from continuing operations, excluding net realized gains (losses) on investments and fair value changes to equity securities, COVID-19 direct and incremental expenses, loss on extinguishment of debt, non-core operations (defined below), net income (loss) attributable to non-controlling interests, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities), as well as other highly variable or unusual items.
36

Executive Summary
Beginning with Second Quarter 2022, we changed the calculation of our segment measure of profitability, Adjusted EBITDA, to exclude certain businesses which we now expect to fully exit, including the long-tail commercial liability businesses in Global Housing (sharing economy and small commercial businesses), as well as certain legacy long-duration insurance policies within Global Lifestyle (collectively referred to as “non-core operations”). All prior period amounts have been revised, which impacts segment Adjusted EBITDA but does not impact consolidated net income. See Note 5 to the Consolidated Financial Statements included elsewhere in this Report for more information.
We have also revised our prior period financial statements to reflect the correction of an error identified in Second Quarter 2022 related to reinsurance of claims and benefits payables within the Connected Living business unit in our Global Lifestyle segment occurring in late 2018 through first quarter 2022, as well as other immaterial errors which were previously recorded in the periods in which the Company identified them. See Notes 2 and 17 to the Consolidated Financial Statements included elsewhere in this Report for more information. Additionally, prior period disclosures have been revised to include Hurricane Eta, which should have been classified as a reportable catastrophe since fourth quarter 2020. This correction had an immaterial impact to prior periods.
Summary of Financial Results
Consolidated net income from continuing operations decreased $134.9 million, or 72%, to $52.2 million for Second Quarter 2022 from $187.1 million for Second Quarter 2021. The decline was primarily due to a decrease in net unrealized gains from changes in fair value of equity securities, lower earnings contributions from Global Housing, and a $29.4 million after-tax decrease in earnings from non-core operations, mostly driven by adverse prior year reserve development from sharing economy.
Global Lifestyle Adjusted EBITDA increased $22.6 million, or 12%, to $206.8 million for Second Quarter 2022 from $184.2 million for Second Quarter 2021, from continued strong results across Connected Living and Global Automotive. Connected Living growth was primarily led by mobile from higher device protection contributions in North America, including subscriber growth and more favorable loss experience. Global Automotive increased primarily from higher investment income mainly from the sale of a real estate joint venture partnership and higher yields, as well as favorable loss experience in select ancillary products. Growth was partially offset by the unfavorable impact of foreign exchange.
Global Lifestyle net earned premiums, fees and other income increased $47.6 million, or 2%, to $1.98 billion for Second Quarter 2022 from $1.94 billion for Second Quarter 2021, primarily led by Global Automotive premium growth from strong prior period sales. Connected Living decreased modestly, mainly from the impact of runoff mobile programs, partially offset by higher mobile fee income driven by an increase in global mobile devices serviced (defined below), as well as device protection growth in North America.
Global Housing Adjusted EBITDA decreased $57.2 million, or 43%, to $75.2 million for Second Quarter 2022 from $132.4 million for Second Quarter 2021. Pre-tax reportable catastrophes (defined as individual catastrophic events that generate losses in excess of $5.0 million pre-tax, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums) increased $17.2 million, primarily due to prior period development from Hurricane Eta and current period losses from Tropical Storm Alex. Excluding reportable catastrophes, Adjusted EBITDA decreased $40.0 million, or 30%, year-over-year. Approximately $25.0 million of the decrease was driven by higher non-catastrophe loss experience, largely within Lender-placed Insurance, from higher claims severity related to inflation. Higher loss experience included a $12.0 million year-over-year increase in reserves for prior and current year periods along with elevated severity in the current quarter, particularly from fire claims. The remainder of the decline was mainly from higher catastrophe reinsurance costs, largely driven by increased exposures.
Global Housing net earned premiums, fees and other income was $495.7 million for Second Quarter 2022, compared to $496.8 million for Second Quarter 2021, as growth in Lender-placed Insurance from higher average insured values and premium rates were offset by higher catastrophe reinsurance costs.
Corporate and Other Adjusted EBITDA was $(24.9) million for Second Quarter 2022 compared to $(16.9) million for Second Quarter 2021, primarily driven by higher employee-related expenses and technology expenses.
Catastrophe Reinsurance Program
In July 2022, we finalized our 2022 property catastrophe reinsurance program. The U.S. per-event catastrophe coverage provides $1.16 billion of protection in excess of an $80.0 million retention per event. The coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best. See “Catastrophe Reinsurance Program” below.
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Critical Factors Affecting Results
Our results depend on, among other things, the appropriateness of our product pricing, underwriting, the accuracy of our reserving methodology for future policyholder benefits and claims, the frequency and severity of reportable and non-reportable catastrophes, returns on and values of invested assets, our investment income and our ability to manage our expenses and achieve expense savings. Our results also depend on our ability to profitably grow our businesses, in particular our Connected Living, Multifamily Housing and Global Automotive businesses, and to maintain our position in our Lender-placed Insurance business. Factors affecting these items, including conditions in financial markets, the global economy and the markets in which we operate, including interest rates and inflation, any prolonged recessionary environment, the conflict in Ukraine, fluctuations in exchange rates and competition, may have a material adverse effect on our results of operations or financial condition. For example, the current inflationary environment has increased the costs of paying claims, including for materials and labor, as well as our employee wages, which has impacted the results of our Lender-placed Insurance business and other businesses within Global Housing. For more information on these and other factors that could affect our results, see “Item 1A—Risk Factors” below and in our 2021 Annual Report, and “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Factors Affecting Results” in our 2021 Annual Report.
Our results may be impacted by our ability to continue to grow in the markets in which we operate, including in our Connected Living, Multifamily Housing and Global Automotive businesses, which may be impacted by our ability to provide a superior digital-first customer experience, including from our investments in technology and digital initiatives, to capitalize on the smart home opportunity, and to maintain relationships with significant clients, distributors and other parties or renew contracts with them on favorable terms. Our mobile business is subject to volatility in mobile device trade-in volumes based on the actual and anticipated timing of the release of new devices and carrier promotional programs, as well as to changes in consumer preferences. Our Lender-placed Insurance results will be impacted by changes in the housing market as well as inflation. In addition, across many of our businesses, we must respond to the actions of our competitors, the threat of disruption and the competition for talent. See “Item 1A—Risk Factors—Business, Strategic and Operational Risks—Our revenues and profits may decline if we are unable to maintain relationships with significant clients, distributors and other parties, or renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues,” “Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations” and “The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce” in our 2021 Annual Report.
Critical Accounting Policies and Estimates
Our 2021 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies and estimation process described in the 2021 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for Second Quarter 2022.
Recent Accounting Pronouncements
For a discussion of recent accounting pronouncements, see Note 3 to the Consolidated Financial Statements included elsewhere in this Report.
38

Results of Operations
Assurant Consolidated
The table below presents information regarding our consolidated results of operations for the periods indicated:
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2022202120222021
Revenues:
Net earned premiums$2,168.9 $2,150.6 $4,305.3 $4,256.2 
Fees and other income325.2 298.5 647.6 548.4 
Net investment income92.0 82.9 178.3 159.2 
Net realized (losses) gains on investments and fair value changes to equity securities(76.4)10.3 (138.8)11.1 
Total revenues2,509.7 2,542.3 4,992.4 4,974.9 
Benefits, losses and expenses:
Policyholder benefits600.0 535.2 1,090.0 1,066.8 
Underwriting, selling, general and administrative expenses1,811.7 1,738.6 3,602.3 3,426.4 
Interest expense27.2 28.8 54.1 57.2 
Loss on extinguishment of debt0.9 — 0.9 — 
Total benefits, losses and expenses2,439.8 2,302.6 4,747.3 4,550.4 
Income before provision for income taxes69.9 239.7 245.1 424.5 
Provision for income taxes17.7 52.6 43.9 96.6 
Net income from continuing operations52.2 187.1 201.2 327.9 
Net income from discontinued operations— 18.9 — 33.2 
Net income52.2 206.0 201.2 361.1 
Less: Net loss attributable to non-controlling interest— (0.2)— — 
Net income attributable to stockholders52.2 205.8 201.2 361.1 
Less: Preferred stock dividends— — — (4.7)
Net income attributable to common stockholders$52.2 $205.8 $201.2 $356.4 
For the Three Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021
Net income from continuing operations decreased $134.9 million, or 72%, to $52.2 million for Second Quarter 2022 from $187.1 million for Second Quarter 2021, primarily driven by a decrease in net unrealized gains from changes in fair value of equity securities, mostly related to four equity positions that went public in 2021 through SPAC mergers, and from preferred stocks due to an increase in interest rates. The decrease was also driven by a decrease in earnings from Global Housing due to higher non-catastrophe loss experience and an increase in reportable catastrophe losses. Additionally, the decrease was due to a $29.4 million after-tax decrease in earnings from our non-core operations, mostly driven by adverse prior year reserve development from the sharing economy business. The decrease was partially offset by higher earnings from Global Lifestyle, driven by Connected Living and Global Automotive results.
For the Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021
Net income from continuing operations decreased $126.7 million, or 39%, to $201.2 million for Six Months 2022 from $327.9 million for Six Months 2021, primarily driven by a decrease in net unrealized gains from changes in fair value of equity securities mostly related to four equity positions that went public in 2021 through SPAC mergers and from preferred stocks due to an increase in interest rates. The decrease was also due to a $37.8 million after-tax decrease in earnings from our non-core operations, mostly driven by adverse prior year reserve development from the sharing economy business. Additionally, the decrease was driven by a decrease in earnings from Global Housing due to higher non-catastrophe loss experience. The decrease was partially offset by higher earnings from Global Lifestyle, driven by Connected Living and Global Automotive results, as well as lower reportable catastrophe losses.
39

Discontinued Operations
In August 2021, we completed the sale of the legal entities which comprise the businesses previously reported as the Global Preneed segment and certain businesses previously disposed of through reinsurance, which were previously reported in the Corporate and Other segment (collectively, the “disposed Global Preneed business”) to subsidiaries of CUNA Mutual Group for an aggregate purchase price at closing of $1.34 billion. For additional information, refer to Note 4 to the Consolidated Financial Statements included elsewhere in this Report.

40

Global Lifestyle
The table below presents information regarding the Global Lifestyle segment’s results of operations for the periods indicated: 
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2022202120222021
Revenues
Net earned premiums$1,694.0 $1,675.3 $3,366.3 $3,321.8 
Fees and other income289.3 260.4 576.9 474.0 
Net investment income64.7 48.8 121.1 99.0 
Total revenues2,048.0 1,984.5 4,064.3 3,894.8 
Benefits, losses and expenses
Policyholder benefits328.2 344.6 632.3 672.3 
Underwriting, selling, general and administrative expenses1,513.0 1,455.7 3,010.6 2,852.8 
Total benefits, losses and expenses1,841.2 1,800.3 3,642.9 3,525.1 
Global Lifestyle Adjusted EBITDA$206.8 $184.2 $421.4 $369.7 
Net earned premiums, fees and other income:
Connected Living$1,064.4 $1,080.1 $2,135.2 $2,127.8 
Global Automotive918.9 855.6 1,808.0 1,668.0 
Total$1,983.3 $1,935.7 $3,943.2 $3,795.8 
Net earned premiums, fees and other income:
Domestic$1,518.2 1,462.6 $3,027.7 $2,841.0 
International465.1 473.1 915.5 954.8 
Total$1,983.3 $1,935.7 $3,943.2 $3,795.8 
For the Three Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021
Adjusted EBITDA increased $22.6 million, or 12%, to $206.8 million for Second Quarter 2022 from $184.2 million for Second Quarter 2021, due to strong results across Connected Living and Global Automotive. Connected Living growth was primarily led by mobile from higher device protection contributions in North America, including subscriber growth and more favorable loss experience. Global Automotive earnings increased primarily from higher net investment income, mainly from the sale of a real estate joint venture partnership and higher yields, as well as favorable loss experience in select ancillary products. The increase was partially offset by the unfavorable impact of foreign exchange.
Total revenues increased $63.5 million, or 3%, to $2.05 billion for Second Quarter 2022 from $1.98 billion for Second Quarter 2021. Fees and other income increased $28.9 million, or 11%, mainly driven by an increase in global mobile devices serviced (which includes devices for which we provide value to our consumers and partners, through trade-ins and upgrades, technology, claims fulfillment, repair capabilities, logistics, and asset disposition). Net earned premiums increased $18.7 million, or 1%, primarily driven by continued organic growth from strong prior period U.S. sales in our Global Automotive business across all distribution channels and domestic mobile subscriber growth within our cable operator distribution channel. The increase in net earned premiums was partially offset by a decrease from the run-off of certain global mobile programs and unfavorable impacts of foreign exchange. Net investment income increased $15.9 million, or 33%, primarily due to higher real estate related income, higher fixed maturity asset levels and higher yields.
Total benefits, losses and expenses increased $40.9 million, or 2%, to $1.84 billion for Second Quarter 2022 from $1.80 billion for Second Quarter 2021. Underwriting, selling, general and administrative expenses increased $57.3 million, or 4%, primarily due to higher cost of sales in Connected Living from our recently launched service and repair capabilities and higher operating costs associated with growth. Higher commission expenses also contributed to the increase, mainly from growth across our Global Automotive business and domestic mobile subscriber growth within our cable operator distribution channel, which was partially offset by the run-off of certain global mobile programs. The increase was partially offset by a decrease in policyholder benefits of $16.4 million, or 5%, primarily due to the run-off of certain global mobile programs and favorable loss experience within Global Automotive, from select domestic ancillary products and Connected Living, partially offset by growth across our Global Automotive and Connected Living businesses.
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For the Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021
Adjusted EBITDA increased $51.7 million, or 14%, to $421.4 million for Six Months 2022 from $369.7 million for Six Months 2021, primarily driven by strong results across Connected Living and Global Automotive. In Connected Living, mobile increased primarily from device protection contributions in North America, including subscriber growth and favorable loss experience. Global Automotive increased primarily from higher net investment income, mainly from the sale of real estate joint venture partnership and higher yields, as well as favorable loss experience in select ancillary products and expansion across distribution channels. The increase was partially offset by unfavorable impacts of foreign exchange and higher operating costs associated with growth.
Total revenues increased $169.5 million, or 4%, to $4.06 billion for Six Months 2022 from $3.89 billion for Six Months 2021. Fees and other income increased $102.9 million, or 22%, mainly driven by an increase in global mobile devices serviced. Net earned premiums increased $44.5 million, or 1%, primarily driven by continued organic growth from strong prior period U.S. sales in our Global Automotive business across all distribution channels and domestic mobile subscriber growth within our cable operator distribution channel. The increase in net earned premiums was partially offset by the run-off of certain global mobile programs. Net investment income increased $22.1 million, or 22%, primarily due to higher real estate related income, higher fixed maturity asset levels and higher yields.
Total benefits, losses and expenses increased $117.8 million, or 3%, to $3.64 billion for Six Months 2022 from $3.53 billion for Six Months 2021. Underwriting, selling, general and administrative expenses increased $157.8 million, or 6%, to $3.01 billion for Six Months 2022 from $2.85 billion for Six Months 2021 due to higher cost of sales in Connected Living from our recently launched service and repair capabilities and higher operating costs associated with growth. Higher commission expenses also contributed to the increase, mainly from growth across our Global Automotive business and domestic mobile subscriber growth within our cable operator distribution channel, which was partially offset by the run-off of certain global mobile programs. This increase was partially offset by a decrease in policyholder benefits of $40.0 million, or 6%, to $632.3 million for Six Months 2022 from $672.3 million for Six Months 2021, primarily due to the run-off of certain global mobile programs and favorable loss experience within Global Automotive from select domestic ancillary products, partially offset by growth across our Global Automotive and Connected Living businesses.
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Global Housing
The table below presents information regarding the Global Housing segment’s results of operations for the periods indicated:
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2022202120222021
Revenues
Net earned premiums$460.0 $458.9 $911.6 $902.5 
Fees and other income35.7 37.9 70.1 74.0 
Net investment income19.0 22.9 38.9 41.6 
Total revenues514.7 519.7 1,020.6 1,018.1 
Benefits, losses and expenses
Policyholder benefits218.5 175.9 388.3 371.5 
Underwriting, selling, general and administrative expenses221.0 211.4 440.6 426.6 
Total benefits, losses and expenses439.5 387.3 828.9 798.1 
Global Housing Adjusted EBITDA$75.2 $132.4 $191.7 $220.0 
Impact of reportable catastrophes$20.3 $3.1 $26.5 $49.1 
Net earned premiums, fees and other income
Lender-placed Insurance$272.9 $274.3 $539.7 $534.7 
Multifamily Housing122.2 122.1 242.1 239.5 
Specialty and Other100.6 100.4 199.9 202.3 
Total$495.7 $496.8 $981.7 $976.5 
For the Three Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021
Adjusted EBITDA decreased $57.2 million, or 43%, to $75.2 million for Second Quarter 2022 from $132.4 million for Second Quarter 2021. Pre-tax reportable catastrophes for Second Quarter 2022 increased $17.2 million to $20.3 million, compared to $3.1 million for Second Quarter 2021, primarily due to prior period development from Hurricane Eta and current period losses from Tropical Storm Alex. Excluding reportable catastrophes, Adjusted EBITDA decreased $40.0 million, or 30%, year-over-year. Approximately $25.0 million of the decrease was driven by higher non-catastrophe loss experience, largely within Lender-placed Insurance, from higher claims severity related to inflation. Higher loss experience included a $12.0 million year-over-year increase in reserves for prior and current year periods along with elevated severity in the current quarter, particularly from fire claims. The remainder of the decline was mainly from higher catastrophe reinsurance costs, largely driven by increased exposures.
Total revenues decreased $5.0 million, or 1%, to $514.7 million for Second Quarter 2022 from $519.7 million for Second Quarter 2021. The decrease was primarily due to a decrease in net investment income of $3.9 million, or 17%, primarily due to lower income from real estate-related investments. The decrease was partially offset by an increase in net earned premiums of $1.1 million, or 0.2%, as growth in Lender-placed Insurance from higher average insured values and premium rates was partially offset by higher catastrophe reinsurance costs.
Total benefits, losses and expenses increased $52.2 million, or 13%, to $439.5 million for Second Quarter 2022 from $387.3 million for Second Quarter 2021. Policyholder benefits increased $42.6 million, or 24%, due to higher non-catastrophe loss experience as described above. Underwriting, selling, general and administrative expenses increased $9.6 million, or 5%, mainly due to higher expenses to support operations.
For the Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021
Adjusted EBITDA decreased $28.3 million, or 13%, to $191.7 million for Six Months 2022 from $220.0 million for Six Months 2021. Pre-tax reportable catastrophes decreased $22.6 million, or 46%, to $26.5 million for Six Months 2022 compared to $49.1 million for Six Months 2021. Excluding reportable catastrophes, Adjusted EBITDA decreased $50.9 million, or 19%, mainly driven by higher non-catastrophe loss experience, primarily in Lender-placed Insurance due to higher claims severity
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from inflation, particularly from elevated fire losses, as well as higher catastrophe reinsurance premiums mainly from increased exposures. The decrease was partially offset by higher average insured values and premium rates in Lender-Placed Insurance.
Total revenues increased $2.5 million, or 0.2%, to $1.02 billion for Six Months 2022 from $1.02 billion for Six Months 2021. Net earned premiums increased $9.1 million, or 1%, primarily due to higher average insured values and premium rates in our Lender-placed Insurance business, and continued growth from renters insurance in our Multifamily Housing business, partially offset by higher catastrophe reinsurance premiums and a decline in Specialty and Other from client run-off. The increase was partially offset by a decrease in fees and other income of $3.9 million, or 5%, primarily due to declines in our Multifamily Housing business and our Lender-placed Insurance business, and a decrease in net investment income of $2.7 million, or 6%, primarily due to lower income from real estate-related investments.
Total benefits, losses and expenses increased $30.8 million, or 4%, to $828.9 million for Six Months 2022 from $798.1 million for Six Months 2021. Policyholder benefits increased $16.8 million, or 5%, due to higher non-catastrophe loss experience as described above, partially offset by lower reportable catastrophe losses. Underwriting, selling, general and administrative expenses increased $14.0 million, or 3%, mainly due to higher expenses to support operations.

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Corporate and Other
The tables below present information regarding the Corporate and Other’s segment results of operations for the periods indicated:
For the Three Months Ended June 30,For the Six Months Ended June 30,
2022202120222021
Revenues
Net earned premiums$— $— $— $— 
Fees and other income0.1 0.1 0.4 0.2 
Net investment income6.8 9.7 15.3 15.8 
Total revenues6.9 9.8 15.7 16.0 
Benefits, losses and expenses
Policyholder benefits0.4 — 0.4 — 
General and administrative expenses31.4 26.7 62.4 60.8 
Total benefits, losses and expenses31.8 26.7 62.8 60.8 
Corporate and Other Adjusted EBITDA$(24.9)$(16.9)$(47.1)$(44.8)
For the Three Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021
Adjusted EBITDA was $(24.9) million for Second Quarter 2022 compared to $(16.9) million for Second Quarter 2021. The change in results was primarily due to higher employee-related and technology expenses and a decrease in net investment income.
Total revenues decreased $2.9 million, or 30%, to $6.9 million for Second Quarter 2022 from $9.8 million for Second Quarter 2021, primarily driven by a decrease in net investment income of $2.9 million, or 30%, mostly due to a reduction in income from limited partnerships that was partially offset by increased income from higher invested assets balances, primarily reflecting the remaining proceeds from the sale of Global Preneed.
Total benefits, losses and expenses increased $5.1 million, or 19%, to $31.8 million for Second Quarter 2022 from $26.7 million for Second Quarter 2021, primarily driven by higher employee-related and technology expenses.

For the Six Months Ended June 30, 2022 Compared to the Six Months Ended June 30, 2021
Adjusted EBITDA was $(47.1) million for Six Months 2022 compared to $(44.8) million for Six Months 2021. The change in results was primarily due to higher employee-related and technology expenses.
Total revenues decreased $0.3 million, or 2%, to $15.7 million for Six Months 2022 from $16.0 million for Six Months 2021 primarily driven by a decrease in net investment income of $0.5 million, or 3%, mostly due a reduction in income from limited partnerships that was partially offset by increased income from higher invested assets balances, primarily reflecting the remaining proceeds from the sale of Global Preneed.
Total benefits, losses and expenses increased $2.0 million, or 3%, to $62.8 million for Six Months 2022 from $60.8 million for Six Months 2021. General and administrative expenses increased $1.6 million, or 3%, to $62.4 million for Six Months 2022 from $60.8 million for Six Months 2021, primarily due to higher employee-related and technology expenses.
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Investments
We had total investments of $7.61 billion and $8.67 billion as of June 30, 2022 and December 31, 2021, respectively. Net unrealized gains on our fixed maturity securities portfolio decreased by $778.9 million during Six Months 2022, from $311.4 million as of December 31, 2021 to a net unrealized loss of $467.5 million as of June 30, 2022, primarily due to an increase in Treasury yields.
The following table shows the credit quality of our fixed maturity securities portfolio as of the dates indicated:
 Fair value as of
Fixed Maturity Securities by Credit Quality June 30, 2022December 31, 2021
Aaa / Aa / A$3,552.0 56.3 %$4,066.5 56.4 %
Baa2,372.7 37.6 %2,719.0 37.7 %
Ba307.5 4.9 %333.7 4.6 %
B and lower76.6 1.2 %96.1 1.3 %
Total$6,308.8 100.0 %$7,215.3 100.0 %
The following table shows the major categories of net investment income for the periods indicated: 
 Three Months Ended June 30,Six Months Ended June 30,
 2022202120222021
Fixed maturity securities$66.0 $57.5 $128.3 $114.9 
Equity securities3.8 3.7 7.5 7.3 
Commercial mortgage loans on real estate3.4 2.1 7.3 3.4 
Short-term investments0.8 0.4 1.3 1.2 
Other investments17.8 20.7 35.0 35.4 
Cash and cash equivalents3.8 2.1 6.1 3.7 
Total investment income95.6 86.5 185.5 165.9 
Investment expenses(3.6)(3.6)(7.2)(6.7)
Net investment income$92.0 $82.9 $178.3 $159.2 
Net investment income increased $9.1 million, or 11%, to $92.0 million for Second Quarter 2022 from $82.9 million for Second Quarter 2021, primarily driven by increased income from fixed maturity securities related to higher invested assets and higher yields, partially offset by lower income from other investments mostly due to a reduction in income from limited partnerships.
Net realized losses on investments and fair value changes to equity securities were $76.4 million for Second Quarter 2022 compared to net gains of $10.3 million for Second Quarter 2021. The change in Second Quarter 2022 was mostly due to $62.5 million of net unrealized losses from changes in fair value of equity securities that were driven by a $47.8 million decrease in net unrealized gains from four equity positions that went public in 2021 through SPAC mergers. The net realized losses were also driven by $22.6 million of net realized losses on sales of fixed maturity securities, partially offset by $8.4 million of net realized gains on sales of equity securities.

Net investment income increased $19.1 million, or 12%, to $178.3 million for Six Months 2022 from $159.2 million for Six Months 2021, primarily driven by increased income from fixed maturity securities related to higher invested assets and higher yields, higher rates on short-term investments and cash and cash equivalents, and higher income on commercial mortgage loans on real estate due to higher asset levels and prepayment fees.
Net realized losses on investments and fair value changes to equity securities were $138.8 million for Six Months 2022 compared to net gains of $11.1 million for Six Months 2021. The change in Six Months 2022 was mostly due to $117.4 million of net unrealized losses from changes in fair value of equity securities that included a $93.7 million decrease in net unrealized gains from four equity positions that went public in 2021 through SPAC mergers. The net realized losses were also driven by $41.1 million of net realized losses on sales of fixed maturity securities, partially offset by $20.2 million of net realized gains on sales of equity securities.
As of June 30, 2022, we owned $18.3 million of securities guaranteed by financial guarantee insurance companies. Included in this amount was $15.2 million of municipal securities, whose credit rating was A+ with the guarantee, but would have had a rating of AA- without the guarantee.
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For more information on our investments, see Notes 7 and 8 to the Consolidated Financial Statements included elsewhere in this Report.
Catastrophe Reinsurance Program
In July 2022, we finalized our 2022 property catastrophe reinsurance program. 2022 reinsurance premiums for this program are estimated to be approximately $189.0 million pre-tax compared to approximately $149.0 million pre-tax for 2021, predominantly reflecting increased lender-placed exposure as a result of higher average insured values compared to 2021. Coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best. Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.
The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $1.16 billion of coverage in excess of an $80.0 million retention per event. In addition, it includes multiyear reinsurance contracts covering approximately 45% of the U.S. program, reducing volatility in future reinsurance costs. All layers of the program allow for one automatic reinstatement, except the first layer, which has two reinstatements. The 2022 U.S. program also maintains a cascading feature that provides multi-event protection in which higher coverage layers (Layers 3 through 6) drop down to $110.0 million as the lower layers and reinstatement limit are exhausted. Layer 7 does not cascade, with a retention of $955.0 million and a limit of $290.0 million. When combined with the Florida Hurricane Catastrophe Fund, the U.S. program is covered for gross Florida losses of up to approximately $1.37 billion.
The 2022 catastrophe reinsurance program also includes Caribbean protection of up to $150.0 million, including a $2.0 million co-participation on the top layer, in excess of a $20.0 million retention.
Liquidity and Capital Resources
Management believes that we will have sufficient liquidity to satisfy our needs over the next twelve months, including the ability to pay interest on our debt and dividends on our common stock.
Regulatory Requirements
Assurant, Inc. is a holding company and, as such, has limited direct operations of its own. Our assets consist primarily of the capital stock of our subsidiaries. Accordingly, our future cash flows depend upon the availability of dividends and other statutorily permissible payments from our subsidiaries, such as payments under our tax allocation agreement and under management agreements with our subsidiaries. Our subsidiaries’ ability to pay such dividends and make such other payments is regulated by the states and territories in which our subsidiaries are domiciled. These dividend regulations vary from jurisdiction to jurisdiction and by type of insurance provided by the applicable subsidiary, but generally require our insurance subsidiaries to maintain minimum solvency requirements and limit the amount of dividends these subsidiaries can pay to the holding company. See “Item 1—Business—Regulation—U.S. Insurance Regulation” and “Item 1A—Risk Factors—Legal and Regulatory Risks—Changes in insurance regulation may reduce our profitability and limit our growth” in our 2021 Annual Report. Along with solvency regulations, the primary driver in determining the amount of capital used for dividends from insurance subsidiaries is the level of capital needed to maintain desired financial strength ratings from A.M. Best Company (“A.M. Best”). For the year ending December 31, 2022, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us, under applicable laws and regulations currently in effect and without prior regulatory approval, is approximately $475.3 million. In addition, our international and non-insurance subsidiaries provide additional sources of dividends.
Regulators or rating agencies could become more conservative in their methodology and criteria, increasing capital requirements for our insurance subsidiaries or the enterprise.
In July 2022, Moody’s upgraded the senior debt rating of Assurant, Inc. to Baa2 from Baa3 with a stable outlook and upgraded the insurance financial strength ratings on our insurance operating subsidiaries to A2 from A3 with a stable outlook. For further information on our ratings and the risks of ratings downgrades, see “Item 1—Business—Ratings” and “Item 1A—Risk Factors—Financial Risks—A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition” in our 2021 Annual Report.
Holding Company
As of June 30, 2022, we had approximately $595.4 million in holding company liquidity, which was $370.4 million above our targeted minimum level of $225.0 million. The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of corporate operating and interest expenses. We use the term “holding company liquidity” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc., out of a total of $679.8 million of holding company investment
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securities and cash, which we are not otherwise holding for a specific purpose as of the balance sheet date. We can use such assets for stock repurchases, stockholder dividends, acquisitions and other corporate purposes.
Dividends or returns of capital paid by our subsidiaries, net of infusions and excluding amounts used for acquisitions or received for dispositions, were $317.9 million for Six Months 2022. In 2021, dividends, net of infusions and excluding amounts used for acquisitions or received for dispositions, were $728.6 million (including approximately $12.0 million of dividends from subsidiaries, net of infusions, included in the disposed Global Preneed business). We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to fund investments and acquisitions, and to repurchase our common stock. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions.
Dividends and Repurchases
During Six Months 2022, we made common stock repurchases and paid common stock dividends of $550.2 million.
We paid dividends of $0.68 per common share on June 20, 2022 to stockholders of record as of May 31, 2022. Any determination to pay future dividends on our outstanding common stock will be at the discretion of the Board and will be dependent upon various factors, including: our subsidiaries’ payments of dividends and other statutorily permissible payments to us; our results of operations and cash flows; our financial condition and capital requirements; general business conditions and growth prospects; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and any other factors the Board deems relevant. The Credit Facility also contains limitations on our ability to pay dividends to our stockholders and repurchase capital stock if we are in default, or such dividend payments or repurchases would cause us to be in default, of our obligations thereunder. In addition, if we elect to defer the payment of interest on our 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25% Subordinated Notes due January 2061 (refer to “—Senior and Subordinated Notes” below), we generally may not make payments on or repurchase any shares of our capital stock.
During Six Months 2022, we repurchased 2,765,056 shares of our outstanding common stock at a cost of $474.2 million, exclusive of commissions. In May 2021, the Board authorized a share repurchase program for up to $900.0 million, respectively, of our outstanding common stock. As of June 30, 2022, $367.9 million aggregate cost at purchase remained unused under the repurchase authorization. The timing and the amount of future repurchases will depend on various factors, including those listed above.
We expect to deploy capital primarily to support business growth by funding investments, mergers and acquisitions and returning capital to shareholders in the form of share repurchases and dividends, subject to Board approval and market conditions. As previously announced, we returned $900.0 million of the Global Preneed net proceeds through share repurchases within one year of closing, completing the return in Second Quarter 2022. For additional information, refer to Note 4 to the Consolidated Financial Statements included elsewhere in this Report.
Assurant Subsidiaries
The primary sources of funds for our subsidiaries consist of premiums and fees collected, proceeds from the sales and maturity of investments and net investment income. Cash is primarily used to pay insurance claims, agent commissions, operating expenses and taxes. We generally invest our subsidiaries’ excess funds in order to generate investment income.
We conduct periodic asset liability studies to measure the duration of our insurance liabilities, to develop optimal asset portfolio maturity structures for our significant lines of business and ultimately to assess that cash flows are sufficient to meet the timing of cash needs. These studies are conducted in accordance with formal company-wide Asset Liability Management guidelines.
To complete a study for a particular line of business, models are developed to project asset and liability cash flows and balance sheet items under a large, varied set of plausible economic scenarios. These models consider many factors including the current investment portfolio, the required capital for the related assets and liabilities, our tax position and projected cash flows from both existing and projected new business. For risks related to modeling, see “Item 1A – Risk Factors – Financial Risks –Actual results may differ materially from the analytical models we use to assist in our decision-making in key areas such as pricing, catastrophe risks, reserving and capital management.” in our 2021 Annual Report.
Alternative asset portfolio structures are analyzed for significant lines of business. An investment portfolio maturity structure is then selected from these profiles given our return hurdle and risk appetite. Scenario testing of significant liability assumptions and new business projections is also performed.
Our liabilities generally have limited policyholder optionality, which means that the timing of payments is generally insensitive to the interest rate environment. In addition, our investment portfolio is largely comprised of highly liquid fixed-
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maturity securities with a sufficient component of such securities invested that are near maturity which may be sold with minimal risk of loss to meet cash needs.
Generally, our subsidiaries’ premiums, fees and investment income, along with planned asset sales and maturities, provide sufficient cash to pay claims and expenses. However, there may be instances when unexpected cash needs arise in excess of that available from usual operating sources. In such instances, we have several options to raise needed funds, including selling assets from the subsidiaries’ investment portfolios, using holding company cash (if available), issuing commercial paper, or drawing funds from the Credit Facility (as defined below).
Senior and Subordinated Notes
The following table shows the principal amount and carrying value of our outstanding debt, less unamortized discount and issuance costs as applicable, as of June 30, 2022 and December 31, 2021:
June 30, 2022December 31, 2021
Principal AmountCarrying ValuePrincipal AmountCarrying Value
4.20% Senior Notes due September 2023$225.0 $224.5 $300.0 $299.0 
4.90% Senior Notes due March 2028300.0 297.7 300.0 297.5 
3.70% Senior Notes due February 2030350.0 347.4 350.0 347.3 
2.65% Senior Notes due January 2032350.0 346.5 350.0 346.4 
6.75% Senior Notes due February 2034275.0 272.5 275.0 272.4 
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 400.0 396.2 400.0 395.9 
5.25% Subordinated Notes due January 2061250.0 244.1 250.0 244.0 
Total Debt$2,128.9 $2,202.5 
In June 2022, we redeemed $75.0 million of the $300.0 million then outstanding aggregate principal amount of our 4.20% Senior Notes due September 2023 (the “2023 Senior Notes”) at a make-whole premium plus accrued and unpaid interest to the redemption date. In connection with the redemption, we recognized a loss on extinguishment of debt of $0.9 million, which included a $1.0 million make-whole premium and $0.2 million in debt issuance costs that were written off, partially offset by $0.3 million in unamortized hedging gains recognized upon extinguishment. The gain was reclassified out of accumulated other comprehensive income and recorded through interest expense. In the next five years, we have one upcoming debt maturity in September 2023 when the 2023 Senior Notes will become due and payable.
Credit Facility and Commercial Paper Program
We have a $500.0 million five-year senior unsecured revolving credit facility (the “Credit Facility”) with a syndicate of banks arranged by JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association. The Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and letters of credit from a sole issuing bank in an aggregate amount of $500.0 million, which may be increased up to $700.0 million. The Credit Facility is available until December 2026, provided we are in compliance with all covenants. The Credit Facility has a sublimit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for our commercial paper program or for general corporate purposes.
We made no borrowings using the Credit Facility during Six Months 2022 and no loans were outstanding as of June 30, 2022.
Our commercial paper program requires us to maintain liquidity facilities either in an available amount equal to any outstanding notes from the program or in an amount sufficient to maintain the ratings assigned to the notes issued from the program. Our commercial paper is rated AMB-1 by A.M. Best, P-2 by Moody’s and A-2 by S&P. Our subsidiaries do not maintain commercial paper or other borrowing facilities. This program is currently backed up by the Credit Facility, of which $495.5 million out of the $500.0 million was available as of June 30, 2022, due to $4.5 million of letters of credit outstanding.
We did not use the commercial paper program during Six Months 2022 and there were no amounts relating to the commercial paper program outstanding as of June 30, 2022.
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Cash Flows
We monitor cash flows at the consolidated, holding company and subsidiary levels. Cash flow forecasts at the consolidated and subsidiary levels are provided on a monthly basis, and we use trend and variance analyses to project future cash needs making adjustments to the forecasts when needed.
The table below shows our net cash flows for the periods indicated:
 For the Six Months Ended June 30,
Net cash provided by (used in):20222021
Operating activities - continuing operations $(328.1)$409.9 
Operating activities - discontinued operations — 119.1 
Operating activities (328.1)529.0 
Investing activities - continuing operations 107.0 148.1 
Investing activities - discontinued operations — (114.8)
Investing activities107.0 33.3 
Financing activities - continuing operations (624.9)(20.8)
Financing activities - discontinued operations — — 
Financing activities (624.9)(20.8)
Effect of exchange rate changes on cash and cash equivalents - continuing operations (26.8)1.2 
Effect of exchange rate changes on cash and cash equivalents - discontinued operations— 0.5 
Effect of exchange rate changes on cash and cash equivalents(26.8)1.7 
Net change in cash$(872.8)$543.2 
We typically generate operating cash inflows from premiums collected from our insurance products, fees received for services and income received from our investments, while outflows consist of policy acquisition costs, benefits paid and operating expenses. These net cash flows are then invested to support the obligations of our insurance products and required capital supporting these products. Our cash flows from operating activities are affected by the timing of premiums, fees, and investment income received and expenses paid.
Net cash used in operating activities from continuing operations was $328.1 million for Six Months 2022 compared to net cash provided by operating activities from continuing operations of $409.9 million for Six Months 2021. The decrease in net operating cash flows was primarily driven by a reduction in premium and fees collected during the period due to lower collections of receivables as well as an increase in payments to vendors for the acquisition of mobile devices used to meet insurance claims or generate profits through sales to third parties. The increase in cash used in operations was impacted by the growth in our mobile business from expanded relationships and our recently launched service and repair capabilities.
Net cash provided by investing activities from continuing operations was $107.0 million for Six Months 2022 compared to net cash provided by investing activities from continuing operations of $148.1 million for Six Months 2021. The decrease in cash flows provided by investing activities was primarily driven by the ongoing management of our investment portfolio. Additionally, net cash provided by investing activities for Six Months 2021 included a $60.1 million net cash outflow for transfers from the disposed Global Preneed business to continuing operations related to investments that were not included in the sale.
Net cash used in financing activities from continuing operations was $624.9 million for Six Months 2022 compared to net cash used in financing activities from continuing operations of $20.8 million for Six Months 2021. The increase in net cash used in financing activities was primarily due to the absence of $347.2 million of net proceeds from the issuance of our 2032 Senior Notes during Six Months 2021, as well as $243.5 million increase in share repurchases during Six Months 2022, mainly funded using the remaining net proceeds from the Global Preneed sale.
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The table below shows our cash outflows for interest and dividends for the periods indicated:
 For the Six Months Ended June 30,
 20222021
Interest paid on debt$55.4 $55.8 
Common stock dividends76.0 80.0 
Preferred stock dividends— 4.7 
Total$131.4 $140.5 
Letters of Credit
In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which we are the reinsurer. These letters of credit are supported by commitments under which we are required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. We had $7.1 million and $7.2 million of letters of credit outstanding as of June 30, 2022 and December 31, 2021, respectively.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that are reasonably likely to have a material effect on the financial condition, results of operations, liquidity or capital resources of the Company.

Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our 2021 Annual Report described our Quantitative and Qualitative Disclosures About Market Risk. As of June 30, 2022, there were no material changes to the assumptions or risks.

Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), has evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of June 30, 2022. Based on such evaluation, management, including our CEO and CFO, has concluded that as of June 30, 2022, our disclosure controls and procedures were effective and provide reasonable assurance that information we are required to disclose in our reports pursuant to Rule 13a-15(e) or 15d-15(e) under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms. Our CEO and CFO also have concluded that as of June 30, 2022, information that we are required to disclose in our reports under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.
Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f) under the Exchange Act) during the quarterly period ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II
OTHER INFORMATION
Item 1. Legal Proceedings
For a description of any material pending legal proceedings in which we are involved, see “Commitments and Contingencies—Legal and Regulatory Matters” in Note 16 to the Consolidated Financial Statements included elsewhere in this Report, which is hereby incorporated by reference.

Item 1A. Risk Factors
Certain factors may have a material adverse effect on our business, financial condition, results of operations and cash flows, and you should carefully consider them. It is not possible to predict or identify all such factors. For a discussion of potential risks or uncertainties affecting us, please refer to the information under the heading “Item 1A—Risk Factors” in our 2021 Annual Report. Additional risks and uncertainties that are not yet identified or that we currently believe to be immaterial may also materially harm our business, financial condition, results of operations and cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities:
(In millions, except number of shares and per share amounts)
Period in 2022Total
Number of
Shares Purchased
Average Price
Paid Per Share
Total Number of Shares
Purchased as Part of
Publicly Announced
Programs (1)
Approximate
Dollar Value of
Shares that
May Yet be
Purchased
Under the
Programs (1)
April 1 - April 30460,337 186.77 460,337 513.7 
May 1 - May 31149,808 184.10 149,808 486.2 
June 1 - June 30674,911 175.20 674,911 367.9 
Total1,285,056 $180.38 1,285,056 $367.9 
(1)Shares repurchased pursuant to the May 2021 publicly announced share repurchase authorization of up to $900.0 million aggregate cost at purchase of outstanding common stock. As of June 30, 2022, $367.9 million aggregate cost at purchase remained unused under the repurchase authorization.

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Item 6. Exhibits
The following exhibits either (a) are filed with this Report or (b) have previously been filed with the SEC and are incorporated herein by reference to those prior filings.

  
  
  
  
101  
The following materials from the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended
June 30, 2022, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows and (vi) Notes to the Consolidated Financial Statements.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 
ASSURANT, INC.
By: 
/s/     KEITH W. DEMMINGS      
Name: Keith W. Demmings
Title: President, Chief Executive Officer and Director (Principal Executive Officer)
By: /s/    RICHARD S. DZIADZIO
Name: Richard S. Dziadzio
Title: Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Date: August 4, 2022
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