Item 6. Selected Financial Data

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Item 6. Selected Financial Data

Assurant, Inc.

Five-Year Summary of Selected Financial Data



	As of and for the Years Ended December 31,
	2018			2017			2016		2015		2014
	(in millions except number of shares and per share amounts)
Consolidated Statements of Operations Data:
Revenues
Net earned premiums (1)	$	6,156.9		$	4,404.1		$	5,007.3	$	8,351.0	$	8,632.1
Fees and other income	1,308.1			1,383.1			1,422.5		1,303.5		1,033.8
Net investment income	598.4			493.8			515.7		626.2		656.4
Net realized (losses) gains on investments (2)	(62.7		)	30.1			162.2		31.8		60.8
Amortization of deferred gains and gains on disposal of businesses	56.9			103.9			394.5		13.0		(1.5		)
Gain on pension plan curtailment	—			—			29.6		—		—
Total revenues (3)	8,057.6			6,415.0			7,531.8		10,325.5		10,381.6
Benefits, losses and expenses
Policyholder benefits (4)	2,342.6			1,870.6			1,808.5		4,742.5		4,405.3
Amortization of deferred acquisition costs and value of businesses acquired	2,300.8			1,340.0			1,351.3		1,402.6		1,485.6
Underwriting, general and administrative expenses (1)	2,980.4			2,710.4			3,442.8		3,924.1		3,688.2
Interest expense	100.3			49.5			57.6		55.1		58.4
Loss on extinguishment of debt	—			—			23.0		—		—
Total benefits, losses and expenses (3)	7,724.1			5,970.5			6,683.2		10,124.3		9,637.5
Income before provision (benefit) for income taxes (5)	333.5			444.5			848.6		201.2		744.1
Provision (benefit) for income taxes (6)	80.9			(75.1		)	283.2		59.6		273.2
Net income	252.6			519.6			565.4		141.6		470.9
Less: Net income attributable to non-controlling interest	(1.6		)	—			—		—		—
Net income attributable to stockholders	251.0			519.6			565.4		141.6		470.9
Less: Preferred stock dividends	(14.2		)	—			—		—		—
Net income attributable to common stockholders	$	236.8		$	519.6		$	565.4	$	141.6	$	470.9
Earnings per common share:
Basic	$	4.00		$	9.45		$	9.23	$	2.08	$	6.52
Diluted	$	3.98		$	9.39		$	9.13	$	2.05	$	6.44
Dividends per common share	$	2.28		$	2.15		$	2.03	$	1.37	$	1.06
Share data:
Weighted average common shares outstanding used in basic per common share calculations	59,239,608			54,986,654			61,261,288		68,163,825		72,181,447
Plus: Dilutive securities	305,916			324,378			673,486		853,384		970,563
Weighted average common shares used in diluted per common share calculations	59,545,524			55,311,032			61,934,774		69,017,209		73,152,010
Consolidated Balance Sheets Data:
Cash and cash equivalents and total investments	$	14,657.9		$	12,550.3		$	12,511.0	$	14,283.1	$	15,450.1
Total assets	$	41,089.3		$	31,843.0		$	29,709.1	$	30,036.4	$	31,554.9
Policy liabilities (7)	$	27,702.6		$	21,218.2		$	20,040.6	$	19,787.1	$	19,711.9
Debt	$	2,006.0		$	1,068.2		$	1,067.0	$	1,164.7	$	1,163.5
Total Assurant, Inc. stockholders’ equity	$	5,112.0		$	4,270.6		$	4,098.1	$	4,524.0	$	5,181.3
Per share data:
Total book value per basic common share (8)	$	81.44		$	80.46		$	72.33	$	67.92	$	73.73


(1)	Amounts for the year ended December 31, 2017 decreased due to a change in program structure impacting the accounting for revenues on a net instead of gross basis for a large client in Connected Living. The change in program structure had no impact on net income.


(2)	Included in net realized (losses) gains on investments are other-than-temporary impairment losses of $0.6 million, $0.9 million, $6.9 million, $5.0 million, and less than $0.1 million for the years ended December 31, 2018, 2017, 2016, 2015, and 2014, respectively.


(3)	The increase for the year ended December 31, 2018 reflects the acquisition of TWG on May 31, 2018. The decline for the year ended December 31, 2016 primarily relates to the Assurant Health wind-down and the sale of our Assurant Employee Benefits segment.


(4)	The year ended December 31, 2015 includes higher loss experience and adverse claim development on 2015 individual major medical policies associated with Assurant Health.


(5)	The year ended December 31, 2018 includes $214.8 million of reportable catastrophes (reportable catastrophe losses, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums), primarily related to Hurricanes Michael and Florence and fires in California. The comparable reportable catastrophes for the years ended December 31, 2017, 2016, 2015 and 2014 were $295.7 million, $157.4 million, $19.3 million and $18.5 million, respectively. Reportable catastrophe losses include only individual catastrophic events that generated losses to us in excess of $5.0 million, pre-tax.

(5)

The year ended December 31, 2018 includes $214.8 million of reportable catastrophes (reportable catastrophe losses, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums), primarily related to Hurricanes Michael and Florence and fires in California. The comparable reportable catastrophes for the years ended December 31, 2017, 2016, 2015 and 2014 were $295.7 million, $157.4 million, $19.3 million and $18.5 million, respectively. Reportable catastrophe losses include only individual catastrophic events that generated losses to us in excess of $5.0 million, pre-tax.


(6)	The year ended December 31, 2017 includes a $177.0 million one-time benefit from the reduction of net deferred tax liabilities following the enactment of the TCJA. The reduction of net deferred tax liabilities was recorded at the reportable segment level using our best estimate of deferred tax balances as of the December 22, 2017 enactment date.


(7)	Policy liabilities include future policy benefits and expenses, unearned premiums and claims and benefits payable.


(8)	Total Assurant Inc. stockholders’ equity divided by the basic common shares outstanding for total book value per basic common share calculation. At December 31, 2018, 2017, 2016, 2015 and 2014 there were 62,770,031, 53,078,396, 56,660,642, 66,606,258, and 70,276,896 common shares, respectively, outstanding.

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