Assurant (AIZ) 10-K risk factor changes: FY2020 vs FY2019

[removed: Business] [added: Business, Strategic] and [removed: Competitive] [added: Operational] Risks

If our key clients, distributors, vendors or other parties terminate important business arrangements with us, or renew contracts on terms less favorable to us, [added: we may fail to meet] our [added: business objectives and targets, and our] cash flows, results of operations and financial condition could be materially adversely affected.

[removed: Our segments’ reliance] [added: Reliance] on a few significant clients may weaken our bargaining power and we may be unable to renew contracts with them on favorable terms or at all.

Some of our competitors may offer a broader array of products and services than we do or be better able to tailor those products and services to customer needs, [added: including through better technology systems] or [added: infrastructure, or] may have greater diversity of distribution resources, better brand recognition, more competitive pricing, lower costs, greater financial strength, more resources or higher ratings.

In addition, across many of our businesses, we must respond to the threat of disruption by traditional players, such as insurers, as well as from new entrants, such [removed: as technology companies,] “Insurtech” start-up companies and others.

Acquisitions may not provide us with the benefits that we anticipate, require significant effort and [removed: expenditures] [added: expenditures,] and entail numerous risks, difficulties and uncertainties.

These include, among others, diversion of management’s attention [added: and resources] to integration of operations and [removed: infrastructure;] [added: infrastructure, which could otherwise have been devoted to other strategic opportunities;] inaccurate assessment of risks and liabilities; difficulties in realizing projected efficiencies, synergies and cost savings, including the incurrence of unexpected integration costs; difficulties in keeping existing customers and obtaining new customers; exposure to jurisdictions or businesses with heightened legal and regulatory risks, including corruption; difficulties in integrating operations and systems, including cybersecurity and other technology systems and compliance; difficulties in assimilating employees and corporate cultures; failure to achieve anticipated revenues, earnings, cash flows, business opportunities and growth prospects; an increase in our indebtedness or future borrowing costs; and limitations on our ability to access additional capital when needed.

Our ability to effectively identify and capitalize on opportunities for organic growth depends on, among other things, our ability to: deliver on customer expectations and provide a positive customer experience; successfully execute large-scale, critical programs and projects in a timely and cost-effective manner; identify and successfully enter and market our services in new geographic markets and market segments; recruit and retain qualified personnel; coordinate our efforts across various geographic markets and market segments; maintain and grow relationships with our existing customers and expand our [added: customer base; offer new products and services; form strategic alliances and partnerships; secure key vendor and distributor relationships; and access sufficient capital.]

[added: -] General economic, financial market and political conditions and conditions in the markets in which we operate [removed: could have a material adverse effect on] [added: may materially adversely affect] our results of operations and financial condition.

Limited availability of credit, deteriorations of the global mortgage and real estate markets, declines in consumer confidence and consumer spending, increases in prices or in the rate of inflation, periods of high unemployment, persistently low or rapidly increasing interest rates, disruptive geopolitical events and other events outside of our control, such as a major epidemic or a [removed: pandemic,] [added: pandemic or political or civil unrest,] could contribute to increased volatility and diminished expectations for the economy and the financial markets, including the market for our stock.

[removed: | • |] [added: -] individuals and businesses may (i) choose not to purchase our insurance products, warranties and other products and services, (ii) terminate existing policies or contracts or permit them to lapse and (iii) choose to reduce the amount of coverage they purchase; [removed: |]

[removed: | • |] [added: -] conditions in the markets in which we operate may deteriorate, impacting, among other things, consumer demand for the [added: mobile devices,] electronics, appliances, automobiles, housing and other products we insure, including the rate of introduction and success of new products, technologies and promotional programs that provide opportunities for growth; [removed: |]

[removed: | • |] [added: -] clients are more likely to underperform expectations, experience financial [removed: distress,] [added: distress and] declare [removed: bankruptcy or liquidate,] [added: bankruptcy,] which could have an adverse impact on the remittance of premiums from such clients and the collection of receivables from such clients for items such as unearned premiums and could otherwise expose us to credit risk; [removed: |]

[removed: | • |] [added: -] claims on certain specialized insurance products tend to rise; [removed: |]

[removed: | • |] [added: -] there is a higher loss ratio on credit card and installment loan insurance due to rising [removed: unemployment and disability levels; |][added: unemployment;]

[removed: | • |] [added: -] there is an increased risk of fraudulent insurance claims; and [removed: |]

[removed: | • |] [added: - there may be] substantial decreases in loan availability and [removed: origination could] [added: origination, which may] reduce the demand for credit insurance that we write or debt cancellation or debt deferment products that we administer, and on the placement of hazard insurance under our Lender-placed Insurance programs. [removed: |]

Inflationary pressures may also affect the costs associated with our [removed: preneed] [added: Global Preneed] insurance policies, particularly those that are guaranteed to grow with the CPI.

[removed: For example, we face the risk of restrictions on currency conversion or the transfer of funds; burdens and costs of compliance with a variety of foreign laws and regulations and the associated risk and costs of non-compliance; exposure to undeveloped or evolving legal systems, which may result in unpredictable or inconsistent application of laws and regulations; exposure to commercial, political, legal or regulatory corruption; political, economic or other instability in countries in which we conduct] business, including possible terrorist acts; the imposition of tariffs, trade barriers or other protectionist laws or business practices that favor local competition, increase costs and adversely affect our business; inflation and foreign exchange rate fluctuations; diminished ability to enforce our contractual rights; potential increased risk of data breaches; differences in cultural environments; changes in regulatory requirements, including changes in regulatory treatment of certain products or services; exposure to local economic conditions and its impact on our clients’ performance and creditworthiness; and restrictions on the repatriation of non-U.S. investments and earnings.

As we continue to expand in select worldwide markets, our business becomes increasingly exposed to these and other risks, in particular where certain countries or regions have recently experienced economic or political instability, such as in Argentina, [removed: Brazil, South Korea] [added: Brazil] and the United [removed: Kingdom (the “U.K.”).][added: Kingdom.]

As our international business grows, we rely increasingly on fronting carriers [removed: or intermediaries] in certain countries to maintain their licenses and product approvals, satisfy local regulatory requirements and continue in business.

For additional information on the significant international regulations that apply to us, including data protection regulations, and the risks relating thereto, see “Item 1 – Business – Regulation – International Regulation” in this Report, “ – Legal and Regulatory Risks – *We are subject to extensive laws and regulations, which increase our costs and could restrict the conduct of our business, and violations or alleged violations of such laws and regulations could have a material adverse effect on our reputation, business and results of [removed: operations*”,] [added: operations,*”] “ – Legal and Regulatory Risks – *Our business is subject to risks related to litigation and regulatory actions*” and “ – Technology, Cybersecurity and Privacy Risks – *The costs of complying with, or our failure to comply with, U.S. and foreign laws related to privacy, data security and data protection could adversely affect our financial condition, operating results and [removed: reputation*”.][added: reputation.*”]

[removed: The withdrawal of the United Kingdom from the European Union] [added: - The COVID-19 pandemic and measures taken in response thereto] may adversely affect our business, [removed: financial condition and] results of operations [removed: in the region.][added: and financial condition.]

Catastrophes can be man-made, including terrorist attacks and accidents, or can be caused by various natural events, including hurricanes, windstorms, earthquakes, hailstorms, floods, severe winter weather, [removed: fires] [added: fires, epidemics] and [removed: epidemics.][added: pandemics.]

Natural catastrophe trends are changing due to climate change, a phenomenon linked to [added: increasing atmospheric concentrations of greenhouse gases, resulting in] rising global temperatures and [removed: resulting in] changes in weather patterns.

While the exact impact of the physical effects of climate change is uncertain, changes in the global climate may cause long-term increases in the frequency and severity of weather events, [added: such as wildfires and hurricanes,] particularly in coastal [removed: areas, and result in increased claims and higher catastrophe losses, which could have a material adverse effect on our results of operations and financial condition.][added: areas.]

While the frequency and severity of both man-made and natural catastrophes are inherently unpredictable, increases in the value and geographic concentration of insured property, the geographic concentration of insured lives and the effects of inflation could increase the [added: frequency and] severity of claims from future catastrophes.

In addition, legislative and regulatory initiatives and court decisions following major catastrophes could [removed: expand] [added: force expansion of certain] insurance [removed: coverage] [added: coverages] for catastrophe claims or otherwise adversely impact our business.

We use catastrophe modeling tools that help estimate our probable losses, but these projections are based on historical data and other assumptions, including with [removed: respect to climate change and seasonal weather variations, that may differ materially from actual events.]

[removed: If] [added: We purchase reinsurance for certain risks, but if] the severity of an event were sufficiently high, our losses could exceed our reinsurance coverage limits and could have a material adverse effect [added: on our results of operations and financial condition.]

[removed: on] [added: - A decline in the financial strength ratings of] our [added: insurance subsidiaries could adversely affect our] results of operations and financial condition.

[added: See “ – Financial Risks – *Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers*.”] In addition, claims from [removed: catastrophic] [added: catastrophe] events could result in substantial volatility in our results of operations and financial condition for any particular fiscal quarter or year.

Accounting rules do not permit insurers to reserve for [removed: catastrophic] [added: catastrophe] events before they occur.

Once a [removed: catastrophic] [added: catastrophe] event occurs, the establishment of appropriate reserves is an inherently uncertain and complex process.

In addition, with respect to our [removed: preneed] [added: Global Preneed] insurance policies, the average age of our policyholders was approximately 73 years as of December 31, [removed: 2019.][added: 2020.]

Elderly individuals are generally more susceptible to certain epidemics [added: and pandemics] than the overall population, and an epidemic [added: or pandemic] resulting in a higher incidence of mortality could have a material adverse effect on our results of operations and financial condition.

If we experience a local or regional [removed: disaster or other] business continuity event, such as an earthquake, hurricane, flood, terrorist attack, pandemic, security breach, [removed: cyber-attack,] [added: cyber attack,] power loss, computer, telecommunication or other systems failure or other natural or man-made disaster, our ability to continue operations will depend on an effective disaster recovery plan and system, including the continued availability of our [removed: personnel] [added: personnel, vendors] and [removed: office facilities] [added: other third parties] and [added: work facilities, and] the proper functioning of our computer, telecommunication and other systems and operations.

[removed: We have from time to time experienced business continuity] events, including events that impacted the availability of our systems.

Although [added: some of] these [removed: events] [added: incidents] have resulted in [removed: operational challenges,] [added: data loss and other damages,] to date, they have not had a material adverse effect on our [removed: business, financial condition] [added: business] or [removed: results of] operations.

If a business continuity event occurs, we could lose Company, customer, vendor and other third-party [removed: data] [added: data, lose significant processing capability] or experience interruptions to our operations or delivery of products and services to our [added: clients and their] customers, which has occurred from time to time and which could have a material adverse effect on our business, financial condition and results of operations.

The following is a summary of the principal risks that could adversely affect our business, financial condition, results of operations and cash flows.

- 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.

- We may be unable to grow our business if we cannot find suitable acquisition candidates at attractive prices, integrate acquired businesses effectively or identify new areas for organic growth.

- Our inability to successfully recover should we experience a business continuity event could have a material adverse effect on our business, financial condition and results of operations.

- Failure to successfully manage vendors and other third parties could adversely affect our business.

- We face risks associated with our international operations.

- Our mobile business is subject to the risk of declines in the value of mobile devices in our inventory, to the risk of guaranteed buybacks, and to export compliance and other risks.

- Sales of our products and services may decline if we are unable to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships.

- We face risks associated with joint ventures, franchises and investments in which we share ownership or management with third parties.

- Negative publicity relating to our business or industry may adversely affect our financial results.

Macroeconomic, Political and Global Market Risks

- Catastrophe and non-catastrophe losses, including as a result of climate change, could materially reduce our profitability and have a material adverse effect on our results of operations and financial condition.

- Our actual claims losses may exceed our reserves for claims, requiring us to establish additional reserves or to incur additional expense for settling unreserved liabilities, which could have a material adverse effect on our results of operations, profitability and capital.

- We may be unable to accurately predict and price for claims and other costs, which could reduce our profitability.

- Fluctuations in the exchange rate of the U.S. Dollar and other foreign currencies may materially and adversely affect our results of operations.

- Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business and stock price.

- Unfavorable conditions in the capital and credit markets may significantly and adversely affect our access to capital and our ability to pay our debts or expenses.

- Our investment portfolio is subject to market risk, including changes in interest rates, that may adversely affect our results of operations and financial condition.

- Our investment portfolio is subject to credit, liquidity and other risks that may adversely affect our results of operations and financial condition.

- The value of our deferred tax assets could become impaired, which could materially and adversely affect our results of operations and financial condition.

- Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers.

- Through reinsurance, we have sold or exited businesses that could again become our direct financial and administrative responsibility if the reinsurers become insolvent.

- Due to the structure of our commission program, we are exposed to risks related to the creditworthiness and reporting systems of some of our agents, third-party administrators and clients.

- Our subsidiaries’ inability to pay us sufficient dividends could prevent us from meeting our obligations and paying future stockholder dividends.

- Our ability to declare and pay dividends on our capital stock or repurchase shares may be limited.

- The failure to effectively maintain and modernize our information technology systems and infrastructure and integrate those of acquired businesses could adversely affect our business.

- We could incur significant liability if our information systems or those of third parties are breached or we or third parties otherwise fail to protect the security of data residing on our respective systems, which could adversely affect our business and results of operations.

- The costs of complying with, or our failure to comply with, U.S. and foreign laws related to privacy, data security and data protection could adversely affect our financial condition, operating results and reputation.

- We are subject to extensive laws and regulations, which increase our costs and could restrict the conduct of our business, and violations or alleged violations of such laws and regulations could have a material adverse effect on our reputation, business and results of operations.

- Our business is subject to risks related to litigation and regulatory actions.

- Our business is subject to risks related to reductions in the insurance premium rates we charge.

- Changes in insurance regulation may reduce our profitability and limit our growth.

General Risk Factors

- Our common stock may be subject to stock price and trading volume volatility.

- Employee misconduct could harm us by subjecting us to significant legal liability, regulatory scrutiny and reputational harm.

For a more complete discussion of these risks, please see below.

Business, Strategic and Operational Risks

The success of our business depends on the execution and implementation of our strategy, and the continuing service of key executives, senior management and other highly-skilled personnel.

Our strategy is focused on delivering long-term profitable growth.

For example, one of our clients (whose revenues represented approximately 1% of our total revenues for the year ended December 31, 2019) filed a voluntary petition for reorganization and the U.S. bankruptcy court approved its acquisition and assumption of certain contracts by another company.

Although we currently do not expect a material impact to our financial performance as a result, the reduction in loans tracked from this client has impacted the results of our Global Housing segment.

In particular, the transfer by mortgage servicer clients of loan portfolios to competitors or their participation in insuring Lender-placed Insurance risks that we have historically insured could materially reduce our

revenues and profits from this business.

For example, in our Lender-placed Insurance business, we use a proprietary insurance-tracking administration system and the development by others of competing systems or equivalent capabilities could reduce our revenues and adversely affect our results of operations.

customer base; offer new products and services; form strategic alliances and partnerships; secure key vendor and distributor relationships; and access sufficient capital.

| | |

| --- | --- |

For information on the U.K. and Brexit (as defined hereafter), see “ – *The withdrawal of the United Kingdom from the European Union may adversely affect our business, financial condition and results of operations in the region*.”

We currently conduct business in Europe through our U.K. insurance subsidiaries.

The withdrawal of the U.K. from the European Union (the “E.U.”), referred to as “Brexit,” occurred on January 31, 2020.

Pursuant to the terms of the withdrawal, we expect to be able to continue to use our U.K. insurers to conduct business in Europe until the end of the transition period on December 31, 2020.

We are in the process of obtaining the necessary regulatory approvals for insurance subsidiaries in the Netherlands.

There can be no assurance that we will receive them in time for us to transition our business in the E.U. by the conclusion of the transition period.

If we are unable to write new business and service our current business in Europe following the end of the transition period, either directly or through other arrangements, our European business may be adversely affected due to, among other things, financial exposure to client losses, increased cost of doing business and reputational damage.

Additionally, post-transition period changes to the E.U. and U.K. legal, trade and regulatory frameworks could increase our compliance costs, subject us to operational challenges in the region and negatively impact the region’s economic conditions, financial markets and exchange rates, each of which may have a negative impact on our business.

funding for the joint venture, franchise or entity; differing goals, strategies, priorities or objectives between us and joint venture partners, franchisees or other investors; our inability to unilaterally implement actions, policies or procedures with respect to the joint venture, franchise or entity that we believe are favorable; legal and regulatory compliance risks relating to actions of the joint venture, franchise, entity, joint venture partners, franchisees or other investors; the risk that the actions of joint venture partners, franchisees and other investors could damage our brand image and reputation; and the risk that we will be unable to resolve disputes with joint venture partners, franchisees or other investors.

other trade restrictions.

Our products and services and the markets in which we operate may be subject to periodic negative publicity, which may negatively affect our financial results.

publicity relating to us or our competitors.

Prior to granting such approval, a state insurance commissioner will typically consider such factors as the financial strength of the applicant, the integrity of the applicant’s board of directors and executive officers, the applicant’s plans for the future operations of the domestic insurer and any anti-competitive results that may arise from the consummation of the acquisition of control.

For Global Housing, our lender-placed products are not underwritten on an individual policy basis and our contracts with clients require us to issue these policies automatically when a borrower’s insurance coverage is not maintained.

Our results of operations and financial condition could be adversely affected if our pricing does not accurately account for the additional risk we assume from ensuring that all client properties are provided continuous insurance coverage rather than underwriting on individual policies.

The ratings from both S&P and Moody’s currently carry a stable outlook.

a significant adverse change in the extent, manner or length of time in which the other intangible asset is being used or a significant adverse change in legal factors or in the business climate that could affect the value of the other intangible asset.

We recognized an impairment of certain intangible assets of $20.8 million in 2018 and $15.6 million in 2019 associated with the acquisition of Green Tree Insurance Agency.

A prolonged period during which interest rates remain at historically low levels

Our investments in commercial mortgage loans on real estate (which represented approximately 6% of the fair value of our total investments as of December 31, 2019) are relatively illiquid.

positions should be accrued, if, based on the weight of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized.

Reinsurance for certain types of catastrophes could become unavailable or prohibitively expensive for some of our businesses.

Our reinsurance facilities are generally subject to annual renewal.

For example, we advance agents’ commissions as part of our preneed insurance offerings.

These advances are a

percentage of the total face amount of coverage.

There is a one-year payback provision against the agency if death or lapse occurs within the first policy year.

If SCI, which receives the largest share of such agent commissions, were unable to fulfill its payback obligations, this could have an adverse effect on our operations and financial condition.

We may be adversely affected by changes in the method for determining LIBOR or the replacement of LIBOR.

The U.K. Financial Conduct Authority has announced that it will no longer persuade or compel banks to submit rates for the calculation of LIBOR rates after 2021, which is expected to result in LIBOR rates no longer being available.

In the U.S., the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions convened by the U.S. Federal Reserve, has recommended the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative to U.S. Dollar LIBOR.

The calculation of interest on any of our LIBOR-linked instruments, including our Credit Facility if drawn, based on an alternative rate may result in a higher interest expense and may adversely affect our cash flows and results of operations.

Corporate and Other includes activities of the holding company, financing and interest expenses, net realized gains (losses) on [removed: investments,] [added: investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations),] interest income earned from short-term investments [removed: held and] [added: held,] income (expenses) primarily related to our frozen benefit [removed: plans.][added: plans, amounts related to businesses previously disposed of through reinsurance and the run-off of the Assurant Health business.]

The following discussion covers the year ended December 31, [removed: 2019] [added: 2020] (“Twelve Months [removed: 2019”)] [added: 2020”)] and year ended December 31, [removed: 2018] [added: 2019] (“Twelve Months [removed: 2018”).][added: 2019”).]

Our comparative analysis of Twelve Months [removed: 2018] [added: 2019] and the year ended December 31, [removed: 2017] [added: 2018] is included under the heading “Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, [removed: 2018] [added: 2019] filed with the SEC on February [removed: 22, 2019.][added: 19, 2020.]

[removed: *Overview:*][added: *Overview*]

For additional information on this transaction, see [removed: “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity] [added: “—Liquidity] and Capital Resources” [added: below] and Note [removed: 5] [added: 4] to the Consolidated Financial Statements included elsewhere in this Report.

*Summary of Financial [removed: Results:*][added: Results*]

Consolidated net income attributable to common stockholders increased [removed: $127.1] [added: $59.2] million, or [removed: 54%,] [added: 16%,] to [removed: $363.9] [added: $423.1] million for Twelve Months [removed: 2019] [added: 2020] from [removed: $236.8] [added: $363.9] million for Twelve Months [removed: 2018.][added: 2019.]

Global [removed: Housing] [added: Lifestyle] net earned premiums, fees and other income [removed: decreased $55.5 million] [added: increased $243.4 million, or 3%,] to [removed: $2.03] [added: $7.34] billion for [added: the] Twelve Months [removed: 2019] [added: 2020] compared with [removed: $2.09] [added: $7.09] billion for Twelve Months [removed: 2018, primarily due to the sale of Mortgage Solutions.][added: 2019.]

Global Preneed net earned premiums, fees and other income increased [removed: $11.4 million] [added: $8.5 million, or 4%,] to [removed: $200.9] [added: $209.4] million for Twelve Months [removed: 2019] [added: 2020] compared with [removed: $189.5] [added: $200.9] million for Twelve Months [removed: 2018,] [added: 2019,] primarily [removed: driven by] [added: due to] growth in [removed: prefunded] [added: domestic pre-funded] funeral policies and prior period sales of the Final Need product.

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 [removed: assets] [added: assets,] and our ability to manage our expenses and achieve expense savings.

Our results will also depend on our ability to profitably grow all of our businesses, in particular our Connected Living, Multifamily Housing and Global Automotive businesses, and [removed: manage the pace of declines in placement rates] [added: maintain our position] in our Lender-placed Insurance [removed: business and the North American credit insurance business in Global Financial Services and Other.][added: business.]

Factors affecting these items, [removed: including, but not limited to,] [added: including the impact of the COVID-19 pandemic and measures taken in response thereto,] conditions in financial markets, the global economy and the markets in which we operate, fluctuations in exchange [added: rates, interest] rates and inflation, may have a material adverse effect on our results of operations or financial condition.

Our results may also 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 [removed: businesses, and to manage our Lender-placed Insurance business, including the expected reduction in loans tracked from a financially insolvent client.][added: businesses.]

See “Item 1A – Risk Factors – [removed: Business] [added: Business, Strategic] and [removed: Competitive] [added: Operational] Risks – *Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations*.”

For Twelve Months [removed: 2019,] [added: 2020,] net cash provided by operating activities totaled [removed: $1.41] [added: $1.34] billion; net cash used in investing activities totaled [removed: $619.8 million] [added: $735.2 million;] and net cash used in financing activities totaled [removed: $179.2] [added: $264.8] million.

We had [removed: $1.87] [added: $2.23] billion in cash and cash equivalents as of December 31, [removed: 2019.][added: 2020.]

Interest rates are highly sensitive to many factors, including governmental monetary policies, domestic and international economic and political conditions and other factors beyond our [removed: control.][added: control, such as the COVID-19 pandemic.]

Therefore, in these circumstances we may be required to reinvest those funds in [removed: lower-interest earning] [added: lower interest-earning] investments.

[removed: In connection with our transformation, we are undertaking] [added: We continue to undertake] various expense savings initiatives while also making investments in information technology, among other things, which will impact our expenses.

Critical Accounting [added: Policies and] Estimates

[removed: | • |] [added: -] the nature and extent of the underlying assumptions; [removed: |]

[removed: | • |] [added: -] the quality and applicability of historical data - whether internal or industry data; [removed: |]

[removed: | • |] [added: -] current and expected future economic and market conditions; [removed: |]

[removed: | • |] [added: -] regulatory, legislative, and judicial considerations; [removed: |]

[removed: | • |] [added: -] the extent of data segmentation - data should be homogeneous yet credible enough for loss development methods to apply; [removed: |]

[removed: | • |] [added: -] trends in loss frequencies and severities for various causes of loss; [removed: |]

[removed: | • |] [added: -] consideration of the distribution of loss reserves, management’s selection of the best estimate that may exceed an estimate based on median values, suggesting that favorable development may be more likely than unfavorable development; and [removed: |]

[removed: | • |] [added: -] hindsight testing of prior loss estimates - the loss estimates on some product lines will vary from actual loss experience more than others. [removed: |]

The effect of higher and lower levels of loss frequency and severity on our ultimate costs for claims occurring in [removed: 2019] [added: 2020] would be as follows:

| Change in both loss frequency and severity for all Global Lifestyle and Global Housing | [added: | |] Ultimate cost of [removed: claims occurring] [added: claims occurring] in [removed: 2019] [added: 2020] | | | | [added: | |] Change in cost of [removed: claims occurring] [added: claims occurring] in [removed: 2019] [added: 2020] | | |

| Base scenario (1) | [added: | |] $ | [removed: 1,147.7] [added: 1,179.5] | | | [added: | |] $ | — | |

[removed: | (1) | Represents] [added: (1)Represents] the sum of the case reserves and incurred but not reported reserves as of December 31, [removed: 2019] [added: 2020] for Global Lifestyle and Global Housing. [removed: |]

We carried case reserves for these liabilities, as recommended by the various pool managers, and IBNR reserves totaling [removed: $24.3] [added: $22.1] million (before reinsurance) and [removed: $20.7] [added: $19.1] million (net of reinsurance) at December 31, [removed: 2019.][added: 2020.]

Estimated gross profits include the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in [removed: accumulated other comprehensive income (“AOCI”).][added: AOCI.]

See also Notes [removed: 2] [added: 2, 5] and 8 to the Consolidated Financial Statements included elsewhere in this Report, “Item 1A – Risk Factors – Financial Risks – *Our investment portfolio is subject to market risk, including changes in interest rates that may adversely affect our results of operations and financial condition*” and “ – Investments” contained [removed: later] in this Item 7.

Reinsurance recoverables were [removed: $9.59] [added: $9.84] billion and [removed: $9.17] [added: $9.59] billion as of December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] respectively, which include amounts we are owed by reinsurers for claims paid as well as those included in reserve estimates that are subject to the reinsurance.

We have used reinsurance to exit certain businesses, including Assurant Employee Benefits [removed: business] and blocks of individual life, [removed: annuity,] [added: annuity] and long-term care business.

The reinsurance recoverables relating to these dispositions amounted to [removed: $4.46] [added: $4.42] billion and [removed: $4.41] [added: $4.46] billion at December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] respectively.

The following table provides details of the reinsurance recoverables balance as of December 31, [removed: 2019] [added: 2020] and [removed: 2018:][added: 2019:]

In October 2020, we announced we are exploring strategic alternatives for the Global Preneed business, including the possible sale of the business, to focus on opportunities within the broader Global Lifestyle and Global Housing portfolio.

We have since then made progress toward the possible sale of the business; however, there can be no assurance we will complete a sale.

Corporate and Other also includes goodwill impairments, the foreign currency gains (losses) from remeasurement of monetary assets and liabilities, changes in the fair value of derivative instruments and other expenses related to merger and acquisition activities, as well as other highly variable or unusual items other than reportable catastrophes (reportable catastrophe losses, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums).

*COVID-19*

As a global organization, we actively monitor the developments of the continuously evolving situation resulting from COVID-19.

Throughout this period of uncertainty, we have acted swiftly and deliberately to safeguard our employees, to maintain business operations and service levels for customers, and to support our local communities.

See “Item 1 – Business” for additional information.

While continuing to evolve, the COVID-19 pandemic has caused significant global economic and financial market disruption, resulting in increased financial market volatility, business and operational challenges such as the temporary closures of businesses, and overall diminished expectations for the economy and the financial markets.

Overall, for Twelve Months 2020, we believe COVID-19 had a modest negative impact on our net income, mainly due to lower investment income from lower yields, lower REO volumes, foreign exchange rate fluctuations and higher mortality rates in our Global Preneed business.

This was partially offset by lower expenses, more favorable international claims activity and more favorable non-catastrophe loss experience.

Throughout this period, we believe our liquidity has remained strong.

As of December 31, 2020, we had $407.2 million of holding company liquidity.

Our investment portfolio will continue to be impacted by COVID-19 and related financial market volatility.

Though we generally believe our portfolio remains well diversified and high-quality, with the majority comprised of investment grade fixed maturity assets, interest rates are expected to remain relatively low for the foreseeable future.

Refer to “—Investments” below and Note 8 to the Consolidated Financial Statements included elsewhere in this Report.

We ran multiple scenarios based on the potential duration and severity of this crisis to better understand how our business might perform and stress-tested our capital, cash flows and liquidity.

Our business performed on the high-end of the scenarios, demonstrating its overall resilience given our installed customer base across Connected Living, Global Automotive, Multifamily Housing and Global Preneed.

For a discussion of the material risks relating to COVID-19 on our business, results of operations and financial condition, refer to “Item 1A — Risk Factors — Macroeconomic, Political and Global Market Risks — *The COVID-19 pandemic and measures taken in response thereto may adversely affect our business, results of operations and financial condition.”*

On December 1, 2020, we acquired HYLA, a leading provider of smartphone software, trade-in and upgrade services, for total consideration of

$348.8 million, a portion of which was excess cash in the business that was distributed to the holding company shortly after closing.

In May 2020, we completed our acquisition of AFAS, a provider of finance and insurance products and services including vehicle service contracts, guaranteed asset protection insurance and other ancillary products, for total consideration of $176.9 million, a portion of which was excess cash in the business that was distributed to the holding company shortly after closing.

In May 2020, we sold our minority interests in Iké, terminated our obligations to purchase the remaining shares of Iké, and settled a financial derivative that provided an economic hedge against declines in the Mexican Peso relative to the U.S. Dollar.

These transactions resulted in net cash outflows of $85.3 million, which included financing of $34.0 million, the proceeds from the settlement of the derivative and transaction expenses.

During the third quarter of 2020, we identified impairment indicators impacting the fair value of Global Preneed in connection with exploring strategic alternatives for the Global Preneed business, including the possible sale of the business, to focus on opportunities within the broader Global Lifestyle and Global Housing portfolio.

The fair value calculated in third quarter 2020 was lower than the carrying value of the reporting unit, resulting in the impairment of the entire goodwill of $137.8 million related to the Global Preneed reporting unit.

For additional information on the impairment test, refer to “— Valuation and Recoverability of Goodwill” below and Note 15 to the Consolidated Financial Statements included elsewhere in this Report.

The increase was primarily driven by $154.6 million of lower after-tax losses from the reduction in fair value of Iké, as well as an $84.4 million one-time tax benefit related to the enactment of the federal CARES Act, which allows the carryback of net operating losses to years taxed at higher rates.

The increase was partially offset by the $137.8 million after-tax impairment on the Global Preneed goodwill, as well as a $68.2 million decrease in net realized gains on investments, mostly due to a decline in the fair value of certain collateralized loan obligations and lower net unrealized gains on equity securities.

Global Lifestyle segment net income increased $27.9 million, or 7%, to $437.2 million for Twelve Months 2020 from $409.3 million for Twelve Months 2019, primarily driven by Connected Living from growth in mobile subscribers in North America and Asia Pacific, as well as improved extended service contract loss experience.

The increase was also due to a $6.7 million after-tax benefit for a client recoverable in Connected Living and $9.2 million of client benefits in Global Automotive.

Results were partially offset by lower investment income across all lines of business, unfavorable foreign exchange and declines in Global Financial Services and Other.

Excluding the $117.0 million lower revenue impact resulting from the July 1, 2020 transition of one of our mobile trade-in and upgrade programs from our recognition of device sales revenue to a flat fee per device, revenue increased 5%, primarily due to continued growth in Global Automotive and Connected Living.

Global Housing segment net income decreased $24.9 million, or 10%, to $233.8 million for Twelve Months 2020 from $258.7 million for Twelve Months 2019.

Segment net income for Twelve Months 2020 included $137.2 million of reportable catastrophes compared to $40.9 million of reportable catastrophes for Twelve Months 2019.

Excluding reportable catastrophes, segment net income increased $71.4 million, primarily due to more favorable non-catastrophe loss experience across all lines of business, including underwriting improvements in sharing economy offerings.

The increase was also driven by higher premium rates in Lender-placed Insurance, which were partially offset by a reduction in REO volumes due to foreclosure moratoriums enacted in connection with COVID-19 and fewer policies-in-force.

Lower investment income also contributed to the offset.

Global Housing net earned premiums, fees and other income decreased $56.4 million, or 3%, to $1.98 billion for Twelve Months 2020 compared with $2.03 billion for Twelve Months 2019, primarily due to the expected run-off of our small commercial business and declines in Lender-placed Insurance policies-in-force from the previously disclosed financially insolvent client, as well as lower REO volumes.

The decrease was partially offset by higher premium rates in Lender-placed Insurance and continued growth within Specialty and Other and Multifamily Housing.

Global Preneed segment net income decreased $4.2 million, or 8%, to $48.0 million for Twelve Months 2020 from $52.2 million for Twelve Months 2019, primarily due to higher mortality from COVID-19 and lower investment income.

Corporate and Other also includes the amortization of deferred gains and gains associated with the sales of Fortis Financial Group, Long-Term Care and Assurant Employee Benefits through reinsurance agreements, expenses related to the acquisition of TWG, foreign gains (losses) from remeasurement of monetary assets and liabilities, the gain or loss on the sale of businesses, gains or losses associated with the valuation of our investment in Iké and other unusual or infrequent items.

Additionally, the Corporate and Other segment includes amounts related to businesses disposed of through reinsurance and the runoff of the Assurant Health business.

On May 31, 2018, we acquired TWG Holdings Limited and its subsidiaries (as subsequently reorganized, “TWG”) for total consideration of $2.47 billion.

On August 1, 2018, we sold our Mortgage Solutions business to Xome, an indirect wholly owned subsidiary of WMIH Corp. On December 3, 2018, we sold Time Insurance Company, a subsidiary of the runoff Assurant Health business, to Haven Holdings, Inc.

In October 2019, we acquired the remaining 60% interest in MMI-CPR, LLC (dba Cell Phone Repair), a global franchisor of electronic device repair stores focusing on mobile device repair.

In 2019, we also undertook a strategic review of our investment in Iké.

As part of our initial investment in 2014, we entered into a put/call with the majority shareholders.

In the third quarter of 2019, we decided to pursue the sale of our interests in Iké and recorded a partial impairment in our investment and an increase in our put obligation related to the decline in fair value of the business in connection with our decision to sell.

On January 29, 2020, we entered into agreements to sell our interests in Iké to certain management shareholders of Iké.

We expect closing to occur in the second quarter of 2020 resulting in an expected net cash outflow of $54 million, which could increase by up to an additional $40 million in the event we provide seller financing to the management shareholders at closing, plus transaction costs.

In connection with this agreement, we recorded an incremental loss related to the agreed sale price.

The sale is subject to customary closing conditions, including regulatory approvals.

In August 2019, we issued $350.0 million of 3.70% senior notes due 2030, and used the net proceeds, along with cash on hand, to complete a cash tender offer to purchase $100.0 million of the $375.0 million then outstanding aggregate principal amount of our 6.75% senior notes due 2034 and to redeem $250.0 million of the $300.0 million then outstanding aggregate principal amount of our floating rate senior notes due 2021.

A loss on extinguishment of debt of $31.4 million, primarily related to incremental consideration required to be paid to debtholders as a result of the interest rate differential over the remaining term as compared to current rates, was reported in Twelve Months 2019 as a result of the cash tender offer.

See “– Liquidity and Capital Resources,” below for further details.

The increase was driven by $128.7 million of lower reportable catastrophes (reportable catastrophe losses, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums) and expansion in our Global Lifestyle segment, as well as full-year contributions from

TWG.

The increase was partially offset by a $163.9 million after-tax loss related to a change in the fair value of Iké following the Company’s decision to sell the business.

Global Lifestyle net income increased $111.6 million, or 37%, to $409.3 million for Twelve Months 2019 from $297.7 million for Twelve Months 2018, primarily due to strong organic growth in mobile and full-year contributions from TWG, partially offset by continued declines in Global Financial Services and Other.

TWG contributed approximately $130 million of full year net income to Global Lifestyle in 2019 compared to $74.7 million of income, excluding the $9.3 million after-tax benefit for client recoverables, for seven months in 2018.

Global Lifestyle net earned premiums, fees and other income increased $1.91 billion to $7.09 billion for the Twelve Months 2019 compared with $5.18 billion for Twelve Months 2018, primarily due to full-year contributions from TWG and growth in Connected Living, primarily driven by growth in new mobile subscribers and higher trade-in volumes in our repairs and logistics business, and continued growth in Global Automotive.

Global Housing net income increased $107.9 million, or 72%, to $258.7 million for Twelve Months 2019 from $150.8 million for Twelve Months 2018, primarily due to $128.8 million of lower reportable catastrophes.

Excluding reportable catastrophes, segment net income decreased, primarily driven by declines in Lender-placed Insurance, mostly from the reduction in loans tracked from a financially insolvent client and higher non-catastrophe loss experience in Specialty and Other.

The decrease was partially offset by the absence of Mortgage Solutions losses in Twelve Months 2018 and growth in Multifamily Housing.

Excluding Mortgage Solutions, net earned premiums, fees and other income increased 3% primarily due to growth in Specialty and Other and Multifamily Housing, partially offset by declines in Lender-placed Insurance, including the impact of additional catastrophe reinsurance.

Global Preneed net income decreased $5.5 million, or 10%, to $52.2 million for Twelve Months 2019 from $57.7 million for Twelve Months 2018, primarily due to an out of period adjustment of $9.9 million related to a net over-capitalization of deferred acquisition costs occurring over a ten-year period.

Excluding this adjustment, segment net income increased primarily due to overall growth in the business and lower mortality.

| | |

| --- | --- |

| | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- |

| 3% higher | $ | 1,218.0 | | | $ | 70.3 | |

| 2% higher | $ | 1,194.0 | | | $ | 46.3 | |

| 1% higher | $ | 1,171.0 | | | $ | 23.3 | |

| 1% lower | $ | 1,125.0 | | | $ | (22.7 | ) |

| 2% lower | $ | 1,101.0 | | | $ | (46.7 | ) |

| 3% lower | $ | 1,078.0 | | | $ | (69.7 | ) |

We regularly monitor our investment portfolio to ensure that investments that may be other-than-temporarily impaired are timely identified, properly valued and charged against earnings in the proper period.

The determination that a security has incurred an other-than-temporary decline in value requires the judgment of management.

Assessment factors include, but are not limited to, the length of time and the extent to which the market value has been less than cost, the financial condition and rating of the issuer, whether any collateral is held, our intent and ability to retain the investment for a period of time sufficient to allow for recovery and our intent to sell or whether it is more likely than not that we will be required to sell for fixed maturity securities.

Interest rate risk is the possibility that the fair value of liabilities will change more or less than the market value of investments in response to changes in interest rates, including changes in investment yields and changes in spreads due to credit risks and other [removed: factors.][added: factors, including the impact of the COVID-19 pandemic.]

| [removed: |] Interest Rate Movement [removed: Analysis of] [added: Analysis of] Market Value of Fixed Maturity Securities Investment Portfolio | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | |]

| [removed: |] December 31, 2019 | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | |]

| | | [added: |] \-100 bps | | | | [added: | |] \-50 bps | | | | [added: | |] Base | | | | [added: | |] 50 bps | | | | [added: | |] 100 bps | | |

| [removed: |] Total market value | [added: | |] $ | 13,279.2 | | | [added: | |] $ | 12,785.7 | | | [added: | |] $ | 12,322.4 | | | [added: | |] $ | 11,888.9 | | | [added: | |] $ | 11,478.5 | |

| [removed: |] % change in market value from base case | [added: | |] 7.76 | | % | | [added: | |] 3.76 | | % | | [added: | |] — | | % | | [removed: (3.52] | | [removed: )%] [added: (3.52)] | | [removed: (6.85] [added: %] | | [removed: )%] | [added: | (6.85) | | % |]

| [removed: |] $ change in market value from base case | [added: | |] $ | 956.8 | | | [added: | |] $ | 463.3 | | | [added: | |] $ | — | | | [added: | |] $ | [removed: (433.5] [added: (433.5)] | [removed: )] | | [added: | |] $ | [removed: (843.9] [added: (843.9)] | [removed: )] |

| [removed: |] % change [removed: in] [added: of] market value from base case | [removed: 7.27] | | [added: | | | (1.70) | |] % | | [removed: 3.54] | | [added: (0.85) | |] % | | [added: | |] — | | % | | [removed: (3.33] | | [removed: )%] [added: 0.85] | | [removed: (6.49] [added: %] | | [removed: )%] | [added: | 1.70 | | % |]

| [removed: |] $ change [removed: in] [added: of] market value from base case | [added: | | | | |] $ | [removed: 818.7] [added: (229.0)] | | | [added: | |] $ | [removed: 398.7] [added: (114.5)] | | | [added: | |] $ | — | | | [added: | |] $ | [removed: (374.9] [added: 114.5] | [removed: )] | | [added: | |] $ | [removed: (730.1] [added: 229.0] | [removed: )] |

| Interest Rate Movement [removed: Analysis of] [added: Analysis of] Portfolio Yield of Fixed Maturity Securities Investment Portfolio | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | |]

| December 31, 2019 | | | | | | | | | | | | | | | [added: | | | | | | | | | | | | | | |]

| | [added: | |] \-100 bps | | | [added: | | |] \-50 bps | | | [added: | | |] Base | | | [added: | | |] 50 bps | | | [added: | | |] 100 bps | | [added: |]

| Portfolio yield* | [added: | |] 4.34 | [added: |] % | | [added: | |] 4.41 | [added: |] % | | [added: | |] 4.47 | [added: |] % | | [added: | |] 4.53 | [added: |] % | | [added: | |] 4.60 | [added: |] % |

| % change in portfolio yield | [removed: (0.13] | [removed: )%] | [added: (0.13)] | [removed: (0.06] | [removed: )%] [added: %] | | [added: | | (0.06) | | % | | | |] — | [added: |] % | | [added: | |] 0.06 | [added: |] % | | [added: | |] 0.13 | [added: |] % |

| % change in portfolio yield | [removed: (0.15] | [removed: )%] | [added: (0.14)] | [removed: (0.07] | [removed: )%] [added: %] | | [added: | | (0.07) | | % | | | |] — | [added: |] % | | [added: | |] 0.07 | [added: |] % | | [removed: 0.15] | [added: | 0.14 | |] % |

For our portfolio limits, we use credit ratings from Moody’s, S&P, Fitch Ratings, Inc. and [added: DBRS, Inc. (collectively, the “NRSROs”) to determine an issuer’s rating.]

| [removed: |] December 31, 2019 | | | | | | | [removed: December 31, 2018] | | | | | | [added: | | | | | | | | | | | | | | | | | | | |]

| Rating | [added: | |] Fair Value | | | | [added: | |] Percentage [removed: of Total] [added: of Total] | | | [added: | | |] Fair Value | | | | [added: | |] Percentage [removed: of Total] [added: of Total] | | [added: |]

| Aaa/Aa/A | [added: | |] $ | [removed: 8,014.7] [added: 8,168.9] | | | [removed: 65] | [added: | 61 | |] % | | [added: | |] $ | [removed: 7,329.8] [added: 8,014.7] | | | [added: | |] 65 | [added: |] % |

| Baa | [removed: 3,734.7] | | [added: 4,624.1] | | [removed: 30] | [added: | | | 34 | |] % | | [removed: 3,322.7] | | [added: 3,734.7] | | [added: | | | |] 30 | [added: |] % |

| B and lower | [removed: 92.3] | | [added: 107.5] | | [added: | | | |] 1 | [added: |] % | | [removed: 156.7] | | [added: 92.3] | | [added: | | | |] 1 | [added: |] % |

| Total | [added: | |] $ | [removed: 12,322.4] [added: 13,449.0] | | | [added: | |] 100 | [added: |] % | | [added: | |] $ | [removed: 11,257.1] [added: 12,322.4] | | | [added: | |] 100 | [added: |] % |

We had [removed: $9.59] [added: $9.84] billion and [removed: $9.17] [added: $9.59] billion of reinsurance recoverables as of December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] respectively, the majority of which are protected from credit risk by various types of risk mitigation mechanisms such as trusts, letters of credit or by withholding the assets in a modified coinsurance or co-funds-withheld arrangement.

For example, reserves of [removed: $606.1] [added: $520.4] million, [removed: $511.2] [added: $499.6] million and [removed: $2.49] [added: $2.55] billion as of December 31, [removed: 2019] [added: 2020] and [removed: $761.7] [added: $606.1] million, [removed: $525.7] [added: $511.2] million and [removed: $2.34] [added: $2.49] billion as of December 31, [removed: 2018,] [added: 2019,] relating to coinsurance arrangements with Sun Life, Talcott Resolution (formerly owned by The Hartford) and John Hancock, respectively, related to sales of businesses that are backed by trusts.

As of December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] we had $845.2 million [removed: and $775.9 million, respectively,] of reinsurance recoverables from ERAC that are not protected by the risk mitigation mechanisms discussed above.

Approximately 3% [removed: and 4%] of Assurant preneed insurance policies, with reserves of [removed: $217.5] [added: $208.1] million and [removed: $221.7] [added: $217.5] million, as of December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] respectively, have death benefits that are guaranteed to grow with the CPI.

Total invested assets denominated in currencies other than the Canadian Dollar were approximately [removed: 5%] [added: 3%] and [removed: 7%] [added: 5%] of our total invested assets at December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] respectively.

The foreign exchange risk sensitivity of our fixed maturity securities denominated in Canadian Dollars, whose balance was [removed: $2.08] [added: $2.29] billion and [removed: $1.78] [added: $2.08] billion of the total market value as of December 31, [removed: 2019] [added: 2020] and [removed: 2018,] [added: 2019,] respectively, on our entire fixed maturity securities portfolio is summarized in the following tables:

| Foreign Exchange Movement [removed: Analysis of] [added: Analysis of] Market Value of Fixed Maturity Securities | | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | |]

| [added: | | |] December 31, [removed: 2019] [added: 2020] | | | | | | | | | | | | [added: December 31, 2019] | | | | | | | | |

| Foreign exchange spot rate at December [removed: 31, 2019,] [added: 31, 2019,] US Dollar to Canadian Dollar | | [added: | | | |] \-10% | | | | [added: | |] \-5% | | | | [added: | |] 0 | | | | [added: | |] 5% | | | | [added: | |] 10% | | |

| Total market value | | [added: | | | |] $ | 12,114.0 | | | [added: | |] $ | 12,218.2 | | | [added: | |] $ | 12,322.4 | | | [added: | |] $ | 12,426.6 | | | [added: | |] $ | 12,530.8 | |

| % change of market value from base case | | [removed: (1.69] | | [removed: )%] | | [removed: (0.85] [added: (1.69)] | | [removed: )%] [added: %] | | [added: | | (0.85) | | % | | | |] — | | % | | [added: | |] 0.85 | | % | | [added: | |] 1.69 | | % |

| $ change of market value from base case | | [added: | | | |] $ | [removed: (208.4] [added: (208.4)] | [removed: )] | | [added: | |] $ | [removed: (104.2] [added: (104.2)] | [removed: )] | | [added: | |] $ | — | | | [added: | |] $ | 104.2 | | | [added: | |] $ | 208.4 | |

| Foreign exchange spot rate at December [removed: 31, 2018,] [added: 31, 2020,] US Dollar to Canadian Dollar | | [added: | | | |] \-10% | | | | [added: | |] \-5% | | | | [added: | |] 0 | | | | [added: | |] 5% | | | | [added: | |] 10% | | |

| % change [removed: of] [added: in] market value from base case | | [removed: (1.58] | [added: 6.81] | [removed: )%] | [added: %] | [removed: (0.79] | | [removed: )%] | [added: 2.75] | [added: | % | | | |] — | | % | | [removed: 0.79] | | [added: (4.59) | |] % | | [removed: 1.58] | | [added: (7.92) | |] % |

| $ change [removed: of] [added: in] market value from base case | | [added: |] $ | [removed: (178.0] [added: 916.1] | [removed: )] | | [added: | |] $ | [removed: (89.0] [added: 369.4] | [removed: )] | | [added: | |] $ | — | | | [added: | |] $ | [removed: 89.0] [added: (617.3)] | | | [added: | |] $ | [removed: 178.0] [added: (1,065.5)] | |

| Foreign Exchange Movement [removed: Analysis of] [added: Analysis of] Net Income | | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | |]

| Year Ended December 31, 2019 | | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | | | |]

| Foreign exchange daily average rate for the year ended December 31, 2019, US Dollar to Canadian Dollar | | [added: | | | |] \-10% | | | | [added: | |] \-5% | | | | [added: | |] 0 | | | | [added: | |] 5% | | | | [added: | |] 10% | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Total market value | | | $ | 14,365.1 | | | | | $ | 13,818.4 | | | | | $ | 13,449.0 | | | | | $ | 12,831.7 | | | | | $ | 12,383.5 | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | \-100 bps | | | | | | \-50 bps | | | | | | Base | | | | | | 50 bps | | | | | | 100 bps | | |

| Portfolio yield* | | | 4.17 | | % | | | | 4.24 | | % | | | | 4.31 | | % | | | | 4.38 | | % | | | | 4.45 | | % |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | \-100 bps | | | | | | \-50 bps | | | | | | Base | | | | | | 50 bps | | | | | | 100 bps | | |

| | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Ba | | | 548.5 | | | | | | 4 | | % | | | | 480.7 | | | | | | 4 | | % |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Total market value | | | | | | $ | 13,220.0 | | | | | $ | 13,334.5 | | | | | $ | 13,449.0 | | | | | $ | 13,563.5 | | | | | $ | 13,678.0 | |

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| Net Income | | | | | | $ | 439.7 | | | | | $ | 441.2 | | | | | $ | 442.7 | | | | | $ | 444.2 | | | | | $ | 445.7 | |

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| | December 31, 2018 | | | | | | | | | | | | | | | | | | | |

| | Total market value | $ | 12,075.8 | | | $ | 11,655.8 | | | $ | 11,257.1 | | | $ | 10,882.2 | | | $ | 10,527.0 | |

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| December 31, 2018 | | | | | | | | | | | | | | |

| Portfolio yield* | 4.31 | % | | 4.39 | % | | 4.46 | % | | 4.53 | % | | 4.61 | % |

DBRS, Inc. (collectively, the “Nationally Recognized Statistical Rating Organizations” or “NRSROs”) to determine an issuer’s rating.

| | | | | | | | | | | | | | |

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| Ba | 480.7 | | | | 4 | % | | 447.9 | | | | 4 | % |

| December 31, 2018 | | | | | | | | | | | | | | | | | | | | |

| Total market value | | $ | 11,079.1 | | | $ | 11,168.1 | | | $ | 11,257.1 | | | $ | 11,346.1 | | | $ | 11,435.1 | |

| Net income | | $ | 250.1 | | | $ | 251.4 | | | $ | 252.6 | | | $ | 253.8 | | | $ | 255.1 | |

Through our Global Lifestyle segment, we provide mobile device solutions and extended service products and related services for [added: mobile devices,] consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit [added: protection] and other insurance products (referred to as “Global Financial Services and Other”).

Our financial strength and [removed: core] capabilities across our businesses create competitive advantages that we believe allow us to support our clients, deliver superior experience for their customers and drive sustainable profitable growth over the long term.

As of December 31, [removed: 2019,] [added: 2020,] we had [removed: $44.29] [added: $44.65] billion in total assets and our debt to total capital was [removed: 26.2%.][added: 27.5%.]

*Client and consumer insights and evolving capabilities support innovation.* During our long business tenure, we have developed a comprehensive understanding of our clients and the consumer markets [removed: we] [added: they] serve.

We intend to continue capitalizing on our consumer insights, as well as [removed: to leverage] [added: leveraging] investments in emerging [removed: technologies,] [added: technologies and digitization,] to introduce new and innovative products and services and adapt those offerings to anticipate and address emerging issues.

Our vision is to be the premier provider of lifestyle and housing solutions [removed: globally.][added: globally to support the increasingly connected lifestyle of consumers.]

[removed: We periodically assess our business portfolio to ensure we align resources with the best opportunities and] [added: In particular,] we have identified Connected Living, Global Automotive and Multifamily Housing as key businesses targeted for growth.

We intend to grow our businesses by continuing to invest in capabilities and [removed: technology which allows] [added: technology, including digital, to enable] us to innovate and deliver superior customer experience, as well as further expanding our offerings and diversifying our distribution channels.

As we adapt our business portfolio and capabilities to respond to client and consumer needs, we expect to continue to drive additional value to consumers by expanding our fee-for-service offerings and evolving our mix of [removed: business.][added: business, focusing on higher growth and lower capital businesses.]

We expect to generate a more diversified mix of business and [removed: earnings.][added: earnings, with decreasing exposure to catastrophe risk.]

*Deploying our capital [added: and talent] strategically.* We deploy capital to invest in and grow our businesses, repurchase shares and pay dividends.

Our approach to mergers, acquisitions and other growth opportunities reflects our strategic and disciplined approach [added: to capital management.]

To support long-term growth, we also [removed: launched a] [added: continued our] multi-year transformation of our information technology to realign our IT operating model and fund investments in our technology infrastructure and cloud [added: capabilities, as well as accelerated investments in digital] capabilities.

We will continue to focus on investing in our key capabilities and strengthening our competitive [removed: advantage] [added: advantages,] as [added: well as our talent, as] we look to deliver more value for our clients and their [removed: customers][added: customers.]

[removed: We also undertook a strategic review of] [added: In May 2020, we sold] our [removed: investment] [added: minority interests] in Iké Grupo, Iké Asistencia and certain of their affiliates (collectively, “Iké”).

For additional information on [removed: this transaction,] [added: these transactions,] see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” and [removed: Note 5] [added: Notes 3 and 4] to the Consolidated Financial Statements included elsewhere in this Report.

In [removed: 2019,] [added: 2020,] we returned [removed: $426.3] [added: $454.4] million to shareholders through share repurchases and common stock dividends.

| | [added: | |] Years Ended December 31, | | | | | | | | | | | [added: | | | |]

| | [removed: 2019] | | [added: 2020] | | [removed: 2018] | | | | [removed: 2017] [added: 2019] | | | [added: | | | 2018 | | |]

| Net earned premiums, fees and other income by product: | | | | | | | | | | | | [added: | | | | | |]

| Connected Living (mobile and service contracts) (1) | [added: | |] $ | [removed: 3,768.4] [added: 3,836.6] | | | [added: | |] $ | [removed: 2,800.6] [added: 3,768.4] | | | [added: | |] $ | [removed: 2,156.0] [added: 2,800.6] | |

| Global Automotive | [removed: 2,873.6] | | [added: 3,113.0] | | [removed: 1,909.2] | | | | [removed: 782.8] [added: 2,873.6] | | | [added: | | | 1,909.2 | | |]

| Global Financial Services and Other | [removed: 452.2] | | [added: 388.0] | | [removed: 473.5] | | | | [removed: 457.4] [added: 452.2] | | | [added: | | | 473.5 | | |]

| Total | [added: | |] $ | [removed: 7,094.2] [added: 7,337.6] | | | [added: | |] $ | [removed: 5,183.3] [added: 7,094.2] | | | [added: | |] $ | [removed: 3,396.2] [added: 5,183.3] | |

| Segment net income | [added: | |] $ | [removed: 409.3] [added: 437.2] | | | [added: | |] $ | [removed: 297.7] [added: 409.3] | | | [added: | |] $ | [removed: 178.0] [added: 297.7] | |

| Segment Equity [added: (2)] | [added: | |] $ | [removed: 3,948.2] [added: 4,517.5] | | | [added: | |] $ | [removed: 4,073.2] [added: 3,948.2] | | | [added: | |] $ | [removed: 1,967.3] [added: 4,073.2] | |

[removed: | (1) | For] [added: (1)For] the years ended December 31, [removed: 2019, 2018] [added: 2020, 2019] and [removed: 2017,] [added: 2018, 53.7%,] 55.9%, [removed: 55.4%,] and [removed: 58.7%,] [added: 55.4%,] respectively, of net earned premiums, fees and other income was from mobile products and [added: 46.3%,] 44.1%, [removed: 44.6%,] and [removed: 41.3%,] [added: 44.6%,] respectively, was from service contracts, including assistance services. [removed: |]

The key lines of business in Global Lifestyle are: Connected Living, which includes mobile device solutions and extended service contracts (insurance policies and warranties) (“ESCs”) for [added: mobile devices,] consumer electronics and appliances; Global Automotive; and Global Financial Services and Other.

Our strategy is to provide integrated service offerings to our clients that address all aspects of the insurance, ESC or warranty, including program design and marketing strategy, risk management, data analytics, customer support and claims handling, supply chain [removed: and] [added: services,] service delivery and repair and [removed: logistics.][added: logistics management.]

For example, we seek to provide end-to-end mobile device lifecycle services in our mobile business from when the device is received and inspected, repaired or refurbished, to when it is ultimately disposed of through a sale to a third-party or used to [removed: meet] [added: support] an insurance claim.

In addition to extended protection for multiple devices, our mobile offerings include trade-in and upgrade programs, premium [removed: customer] [added: technical] support, including device self-diagnostic tools, and device disposition.

[removed: Iké] [added: In May 2020, we sold our minority interests in Iké, which] primarily [removed: provides] [added: provided] roadside assistance, home assistance and travel, mobile and other protection products and services.

Global Lifestyle operates globally, with approximately [removed: 76%] [added: 79%] of its revenue from North America (the U.S. and Canada), [removed: 9%] [added: 8%] from Latin America (Brazil, Argentina, Puerto Rico, Mexico, Chile, Colombia and Peru), 8% from Europe (the United Kingdom (the “U.K.”), France, Italy, Spain, Germany and the Netherlands) and [removed: 7%] [added: 6%] from Asia Pacific (South Korea, China, Japan, Australia, India, Singapore and New Zealand) for the year ended December 31, [removed: 2019.][added: 2020.]

In Connected Living, we partner with mobile [removed: device carriers,] [added: network operators,] retailers, MSOs, OEMs and financial and other institutions to market our mobile device solutions and with some of the largest OEMs, consumer electronics retailers, appliance retailers (including e-commerce retailers) and MSOs to market our ESC products and related services.

In Global [removed: Automotive] [added: Automotive,] we partner with auto dealers and agents, third-party administrators and manufacturers to market our vehicle protection and related services.

As of December 31, [removed: 2019,] [added: 2020,] no single Global Lifestyle client accounted for 10% or more of our consolidated revenue.

See “Item 1A – Risk Factors – [removed: Business] [added: Business, Strategic] and [removed: Competitive] [added: 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.*”

The mobile [removed: insurance] [added: protection] market is a large and growing global market, characterized by growth in the “Internet of Things” and evolving wireless standards, particularly the advent of 5G.

While smartphone penetration in the U.S., Japanese and European markets is high, other markets are less mature and [added: also] present [removed: higher] growth opportunities.

As a general trend, we believe the average smartphone replacement cycle is lengthening, which may increase attachment rates for mobile protection [removed: offerings; however, this trend may be reversed based on new technology and innovation.][added: offerings, including for our large, installed customer base.]

In October 2020, we announced we are exploring strategic alternatives for Global Preneed, including the possible sale of the business, to focus on opportunities within the broader Global Lifestyle and Global Housing portfolio, as discussed below.

We have since then made progress toward the possible sale of the business; however, there can be no assurance we will complete a sale.

We intend on capitalizing on the attractive growth opportunities resulting from the convergence of the connected mobile device, car and home.

We are also focused on strategically deploying our talent, as we prioritize programs and initiatives aimed at investing in our talent, with a focus on diversity, equity and inclusion.

*2020 Highlights*

As a global organization, we continue to actively monitor the developments of the continuously evolving situation resulting from the COVID-19 pandemic.

Throughout this year of uncertainty, we took action to safeguard our employees, to maintain business operations and service levels for customers, and to support our local communities.

Since implementing restrictions on non-essential business travel and transitioning the vast majority of our workforce to work-from-home in the beginning of the pandemic, we have approved a limited return to office within certain Asian and European locations, as well as limited essential business travel.

For those employees who need to work in our offices or global facilities, we’ve maintained safety and hygiene protocols, such as social distancing, mandatory use of personal protective equipment and regular cleaning and disinfecting of our locations.

To support our employees, we have implemented additional floating holidays, a one-time COVID-19 relief payment for eligible work-from-home employees and incentive bonuses for eligible on-site employees, as well as increased wellbeing and mental health support services.

We offered financial support through a special COVID-19 Emergency Relief Program to eligible employees who experienced severe financial hardship caused by the pandemic.

We also have been active in maintaining our support within our local communities through charitable contributions.

Beginning in March 2020 and for the remainder of 2020, the COVID-19 pandemic impacted each of our operating segments and may continue to impact our businesses if similar conditions continue to persist or worsen.

Overall, we believe COVID-19 had a modest negative impact on our net income in 2020, mainly due to lower investment income from lower yields, lower real estate owned (“REO”) volumes, foreign exchange rate fluctuations and higher mortality rates in our Global Preneed business.

Refer to “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Executive Summary” below for additional information on the impact of the COVID-19 pandemic on our business.

In 2020, despite the global pandemic, we continued to grow earnings and focus our resources on our market-leading lifestyle and housing businesses.

We made strategic acquisitions in our Connected Living and Global Automotive businesses, in particular HYLA, Inc. (“HYLA”), a provider of smartphone software and trade-in and upgrade services, in December 2020 and American Financial & Automotive Services, Inc. (“AFAS”), a provider of finance and insurance products and services including vehicle service contracts, guaranteed asset protection insurance and other ancillary products, in May 2020.

Our commitment as a responsible employer, including fostering a diverse, equitable and inclusive environment, is also critical to our long-term success.

Refer to “– Human Capital Resources” below for a description of our human capital resources, including initiatives launched in 2020.

As part of our focus on opportunities in our lifestyle and housing businesses, we also began exploring strategic alternatives for Global Preneed, including the possible sale of the business.

We also issued $250.0 million of 5.25% subordinated notes due 2061 and used the net proceeds, together with cash on hand, to finance the acquisition of HYLA.

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(2)Segment equity does not include components of accumulated other comprehensive income (“AOCI”), which is primarily comprised of net unrealized gains on securities, net of taxes.

For additional information on total AOCI, see Note 22 to the Consolidated Financial Statements included elsewhere in this Report.

For additional information, see Note 3 to the Consolidated Financial Statements included elsewhere in this Report.

However, this trend may be reversed based on new technology and innovation.

| | | | | | | | | | | | | | | | | | |

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| | | | Years Ended December 31, | | | | | | | | | | | | | | |

| | | | 2020 | | | | | | 2019 | | | | | | 2018 | | |

| Net earned premiums, fees and other income by product: | | | | | | | | | | | | | | | | | |

(1)Segment equity does not include components of AOCI, which is primarily comprised of net unrealized gains on securities, net of taxes.

For additional information on total AOCI, see Note 22 to the Consolidated Financial Statements included elsewhere in this Report.

*Multifamily Housing:* We provide integrated solutions across the resident lifecycle.

Recently, placement rate declines have moderated, although the impact to 2020 results was offset by the reduction of policies in-force for a financially insolvent client and lower REO volumes as fewer homes moved into default or foreclosure due to moratoriums enacted in connection with COVID-19.

We continue to monitor the state of the overall housing market and the potential impact of the current mortgage moratorium, including on REO volumes.

Should the housing market deteriorate for a prolonged period, we would expect a longer-term increase in placement rates.

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to capital management.

*2019 Highlights*

In 2019, we grew earnings as we added and renewed a number of client partnerships across Global Lifestyle and Global Housing and launched several new product offerings.

We had significant organic growth in our mobile business, including as a result of scaling new and existing client partnerships, and a full year of contributions from our acquisition of TWG Holdings Limited and its subsidiaries (as subsequently reorganized, “TWG”).

During the year, we also continued to make investments to support the launch of new programs, while enhancing our capabilities to support future growth.

For example, we acquired Cell Phone Repair, a global franchisor of electronic device repair stores focusing on mobile device repair, and we are making additional targeted investments in emerging technologies to enhance the customer experience.

In 2019, we made considerable progress in integrating our acquisition of TWG, generating operating synergies and growing from the scale and expertise we acquired.

As part of our initial investment in 2014, we entered into a shareholders agreement with the majority shareholders that provided us with the right to acquire the remainder of Iké from the majority shareholders and the majority shareholders the right to put their interests in Iké to us (together, the “put/call”).

In the third quarter of 2019, we decided to pursue the sale of our interests in Iké and in January 2020, we entered into agreements to sell our interests in Iké to certain management shareholders of Iké.

The sale is subject to customary closing conditions, including regulatory approvals.

In 2019, we also refinanced our debt at lower interest rates.

In August 2019, we issued $350.0 million of 3.70% senior notes due 2030, and used the net proceeds, along with cash on hand, to complete a cash tender offer to purchase $100.0 million of the $375.0 million then outstanding aggregate principal amount of our 6.75% senior notes due 2034 and to redeem $250.0 million of the $300.0 million then outstanding aggregate principal amount of our floating rate senior notes due 2021.

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| | |

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In 2019, Connected Living also included our 40% interest in Iké.

On January 29, 2020, we entered into agreements to sell our interests in Iké to certain management shareholders of Iké.

Systems, training, computer hardware and our overall market development approach are customized to fit the needs of each targeted market.

We believe the acquisition has enhanced our position as a leading lifestyle provider, particularly within the Global Automotive business, with new client partnerships, distribution channels and a deepened global footprint across 21 countries, including key markets such as Asia Pacific.

We have generated significant operating synergies by optimizing global operations.

does not maintain flood insurance.

*Mortgage Solutions:* Prior to the sale of our Mortgage Solutions business, we offered mortgage-related services, including field, inspection, restoration, REO asset management, valuation, title and settlement services.

We expect placement rates to continue to decline in 2020 reflecting the health of the overall housing market and our mix of loans.

We will continue to implement expense management efforts to mitigate the impact to our financial results, as well as leveraging our proprietary tracking administration system.

Additionally, in 2019, we placed coverage for a third event in the Caribbean, with protection of up to $27.5 million in excess of a $17.5 million retention.

We intend to increase sales by broadening our distribution relationships and increasing market share in Canada.

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| (1) | A.M. Best financial strength ratings range from “A++” (superior) to “D” (poor). Ratings of A and A- fall under the “excellent” category, which is the second highest of A.M. Best’s seven ratings categories. A rating of B++ falls under the “good” category, which is the third highest of A.M. Best’s seven ratings categories. A.M. Best has a stable outlook on all of our domestic and significant international operating insurance subsidiaries’ financial strength ratings. |

| (2) | Moody’s insurance financial strength ratings range from “Aaa” (highest quality) to “C” (lowest rated). A numeric modifier may be appended to ratings from “Aa” to “Caa” to indicate relative position within a category, with 1 being the highest and 3 being the lowest. A rating of A3 is considered “upper-medium-grade” and falls within the third highest of Moody’s nine ratings categories. A rating of Baa1 is considered "medium-grade" and falls within the fourth highest of Moody’s nine ratings categories. Moody's has a stable outlook on all of our domestic operating insurance subsidiaries’ insurance financial strength ratings. |

| (3) | S&P’s insurer financial strength ratings range from “AAA” (extremely strong) to “R” (under regulatory supervision). A “+” or “-” may be appended to ratings from categories AA to CCC to indicate relative position within a category. Ratings of A (strong) are within the third highest of S&P’s ten ratings categories. S&P has a stable outlook on all of our domestic operating insurance subsidiaries’ insurer financial strength ratings. |

These laws generally require insurance companies within the insurance holding company system to register with the

Nonetheless, any new group capital calculation methodology may incorporate existing RBC concepts.

It is not possible to predict what impact any such regulatory tool may have on our business.

Our insurance operations in the U.K., for example, are subject to regulation by the Financial Conduct Authority and Prudential Regulation Authority.

Currently, authorized insurers in the U.K. are generally permitted to operate throughout the rest of the European Union (the “E.U.”), subject to satisfying certain requirements of these regulatory bodies and meeting additional local regulatory requirements.

We have established insurance subsidiaries in the Netherlands and are in the process of obtaining the necessary regulatory approvals to ensure we have continued access to the European markets after the transition period has concluded.

For additional information, see “Item 1A – Risk Factors – Legal and Regulatory Risks – *The withdrawal of the United Kingdom from the European Union may adversely affect our business, financial condition and results of operations in the region*.”

oversight across national boundaries and the establishment of ongoing supervisory colleges.

For a description of [added: any] material pending legal [removed: and regulatory matters] [added: proceedings] in which we are involved, see “Commitments and Contingencies – Legal and Regulatory Matters” in Note 27 to the Consolidated Financial Statements included elsewhere in this Report, which is hereby incorporated by reference.

[removed: FORM 10-K][added: FORM 10-K]

| ☒ | [added: | |] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | [added: | |]

For the fiscal year [removed: ended December] [added: ended December] 31, [removed: 2019][added: 2020]

| ☐ | [added: | |] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | [added: | |]

Commission file [removed: number 001-31978][added: number 001-31978]

| Delaware | | | [added: | | | | | |] 39-1126612 | [added: | |]

| (State or other jurisdiction of incorporation) | | | [added: | | | | | |] (I.R.S. Employer Identification No.) | [added: | |]

28 Liberty [removed: Street, 41st] [added: Street, 41st] Floor

New [removed: York, New York 10005][added: York, New York 10005]

[removed: (212) 859-7000][added: (212) 859-7000]

| Title of Each Class | [added: | |] Trading Symbol(s) | [added: | |] Name of Each Exchange on Which Registered | [added: | |]

| Common Stock, $0.01 Par Value | [added: | |] AIZ | [added: | |] New York Stock Exchange | [added: | |]

| 6.50% Series D Mandatory Convertible Preferred Stock, $1.00 Par Value | [added: | |] AIZP | [added: | |] New York Stock Exchange | [added: | |]

| Large accelerated filer | | [added: | | | |] ☒ | | [added: | | | |] Accelerated filer | | [added: | | | |] ☐ | [added: | |]

| Non-accelerated filer | | [added: | | | |] ☐ | | [added: | | | |] Smaller reporting company | | [added: | | | |] ☐ | [added: | |]

| | | | | [added: | | | | | | | |] Emerging growth company | | [added: | | | |] ☐ | [added: | |]

Yes [removed: ☐] [added: ☒] No [removed: x][added: ☐]

The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was [removed: $6.47] [added: $6.12] billion as of the last business day of the fiscal quarter ended June 30, [removed: 2019] [added: 2020] based on the closing sale price of [removed: $106.38] [added: $103.29] per share for the common stock on such date as traded on the New York Stock Exchange.

The number of shares of the registrant’s common stock outstanding at February [removed: 14, 2020] [added: 16, 2021] was [removed: 59,823,754.][added: 57,903,055.]

Certain information contained in the definitive proxy statement for the registrant’s [removed: 2020] [added: 2021] annual meeting of [removed: stockholders] [added: stockholders, which will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates,] is incorporated by reference into Part III hereof.

For the Fiscal Year Ended December 31, [removed: 2019][added: 2020]

| [removed: Item Number] [added: Item Number] | | | [removed: Page Number] | [added: | | | | | Page Number | | |]

| | | [added: | | | |] PART I | | [added: | | | |]

| 1A. | | [added: | | | |] [Risk [removed: Factors](#sC24B550153505972A9CBB9B2853AF14C)] [added: Factors](#ieaec43ed6a604c89b9b84132eda53bc2_16)] | [removed: [16](#sC24B550153505972A9CBB9B2853AF14C)] | [added: | [19](#ieaec43ed6a604c89b9b84132eda53bc2_16) | | |]

| 1B. | | [added: | | | |] [Unresolved Staff [removed: Comments](#sC066C9ED5DD85CC098E432696D41B49C)] [added: Comments](#ieaec43ed6a604c89b9b84132eda53bc2_19)] | [removed: [34](#sC066C9ED5DD85CC098E432696D41B49C)] | [added: | [40](#ieaec43ed6a604c89b9b84132eda53bc2_19) | | |]

| [removed: 3.] [added: 3] | | [added: | | | |] [Legal [removed: Proceedings](#s8AFAA7255EE65A2999218190E6C86710)] [added: Proceedings](#ieaec43ed6a604c89b9b84132eda53bc2_25)] | [removed: [34](#s8AFAA7255EE65A2999218190E6C86710)] | [added: | [40](#ieaec43ed6a604c89b9b84132eda53bc2_25) | | |]

| [removed: 4.] [added: 4] | | [added: | | | |] [Mine Safety [removed: Disclosures](#sAA12E8F457E85AE68F97ED15A6403D4D)] [added: Disclosures](#ieaec43ed6a604c89b9b84132eda53bc2_28)] | [removed: [34](#sAA12E8F457E85AE68F97ED15A6403D4D)] | [added: | [40](#ieaec43ed6a604c89b9b84132eda53bc2_28) | | |]

| | | [added: | | | |] PART II | | [added: | | | |]

| [removed: 5.] [added: 5] | | [added: | | | |] [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#s46BA689945035397A2173D27ECBF8076)] [added: Securities](#ieaec43ed6a604c89b9b84132eda53bc2_34)] | [removed: [35](#s46BA689945035397A2173D27ECBF8076)] | [added: | [41](#ieaec43ed6a604c89b9b84132eda53bc2_34) | | |]

| [removed: 6.] [added: 6] | | [added: | | | |] [Selected Financial [removed: Data](#sD38E1B8019FB5AB28295C6C581BBA2FB)] [added: Data](#ieaec43ed6a604c89b9b84132eda53bc2_37)] | [removed: [38](#sD38E1B8019FB5AB28295C6C581BBA2FB)] | [added: | [44](#ieaec43ed6a604c89b9b84132eda53bc2_37) | | |]

| [removed: 7.] [added: 7] | | [added: | | | |] [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#s29B31552B5775EDD87E05B2C126990F4)] [added: Operations](#ieaec43ed6a604c89b9b84132eda53bc2_40)] | [removed: [40](#s29B31552B5775EDD87E05B2C126990F4)] | [added: | [46](#ieaec43ed6a604c89b9b84132eda53bc2_40) | | |]

| 7A. | | [added: | | | |] [Quantitative and Qualitative Disclosures About Market [removed: Risk](#s9FABB75FA81B5625A3A517325004E9B7)] [added: Risk](#ieaec43ed6a604c89b9b84132eda53bc2_64)] | [removed: [63](#s9FABB75FA81B5625A3A517325004E9B7)] | [added: | [71](#ieaec43ed6a604c89b9b84132eda53bc2_64) | | |]

| [removed: 8.] [added: 8] | | [added: | | | |] [Financial Statements and Supplementary [removed: Data](#s49139302D9F652D586DCD24763E2F4E0)] [added: Data](#ieaec43ed6a604c89b9b84132eda53bc2_67)] | [removed: [67](#s49139302D9F652D586DCD24763E2F4E0)] | [added: | [75](#ieaec43ed6a604c89b9b84132eda53bc2_67) | | |]

| [removed: 9.] [added: 9] | | [added: | | | |] [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#sDDCA5138B8E75977B50CDD51B7582168)] [added: Disclosure](#ieaec43ed6a604c89b9b84132eda53bc2_70)] | [removed: [67](#sDDCA5138B8E75977B50CDD51B7582168)] | [added: | [75](#ieaec43ed6a604c89b9b84132eda53bc2_70) | | |]

| 9A. | | [added: | | | |] [Controls and [removed: Procedures](#s293B1569B81158D0950F2B89201F53DB)] [added: Procedures](#ieaec43ed6a604c89b9b84132eda53bc2_73)] | [removed: [67](#s293B1569B81158D0950F2B89201F53DB)] | [added: | [75](#ieaec43ed6a604c89b9b84132eda53bc2_73) | | |]

| 9B. | | [added: | | | |] [Other [removed: Information](#sD8448858D95351909E9F85D7338DE33C)] [added: Information](#ieaec43ed6a604c89b9b84132eda53bc2_76)] | [removed: [68](#sD8448858D95351909E9F85D7338DE33C)] | [added: | [75](#ieaec43ed6a604c89b9b84132eda53bc2_76) | | |]

| | | [added: | | | |] PART III | | [added: | | | |]

| [removed: 10.] [added: 10] | | [added: | | | |] [Directors, Executive Officers and Corporate [removed: Governance](#s05B6A241241F5435819635D2EF49DBAD)] [added: Governance](#ieaec43ed6a604c89b9b84132eda53bc2_82)] | [removed: [69](#s05B6A241241F5435819635D2EF49DBAD)] | [added: | [76](#ieaec43ed6a604c89b9b84132eda53bc2_82) | | |]

| [removed: 11.] [added: 11] | | [added: | | | |] [Executive [removed: Compensation](#sB71B392D3F875C6CACBC15031BB2D143)] [added: Compensation](#ieaec43ed6a604c89b9b84132eda53bc2_85)] | [removed: [69](#sB71B392D3F875C6CACBC15031BB2D143)] | [added: | [76](#ieaec43ed6a604c89b9b84132eda53bc2_85) | | |]

| [removed: 12.] [added: 12] | | [added: | | | |] [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#s83196FA6D0CD5EDA8D09A3D13C67770E)] [added: Matters](#ieaec43ed6a604c89b9b84132eda53bc2_88)] | [removed: [69](#s83196FA6D0CD5EDA8D09A3D13C67770E)] | [added: | [76](#ieaec43ed6a604c89b9b84132eda53bc2_88) | | |]

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| 5.25% Subordinated Notes due 2061 | | | AIZN | | | New York Stock Exchange | | |

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Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Yes ☐ No ☒

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| 1 | | | | | | [Business](#ieaec43ed6a604c89b9b84132eda53bc2_13) | | | [3](#ieaec43ed6a604c89b9b84132eda53bc2_13) | | |

| 2 | | | | | | [Properties](#ieaec43ed6a604c89b9b84132eda53bc2_22) | | | [40](#ieaec43ed6a604c89b9b84132eda53bc2_22) | | |

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| [Signatures](#ieaec43ed6a604c89b9b84132eda53bc2_106) | | | | | | | | | [82](#ieaec43ed6a604c89b9b84132eda53bc2_106) | | |

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| 1. | | [Business](#s4E29BE0E506950EA8BA2D362502E468B) | [3](#s4E29BE0E506950EA8BA2D362502E468B) |

| 2. | | [Properties](#s0760424F47A55026A89C763B65FFD4F6) | [34](#s0760424F47A55026A89C763B65FFD4F6) |

| [Signatures](#s5519350755E656DD9535CDCDF503C77A) | | | [75](#s5519350755E656DD9535CDCDF503C77A) |

Our common stock is listed on the NYSE under the symbol “AIZ.” On February [removed: 14, 2020,] [added: 16, 2021,] there were approximately [removed: 176] [added: 159] registered holders of record of our common stock.

The following graph compares the cumulative total return (stock price increase plus [added: reinvestment of] dividends paid) on our common stock from December 31, [removed: 2014] [added: 2015] through December 31, [removed: 2019] [added: 2020] with the cumulative total returns for the S&P 400 MidCap Index and the S&P 500 Index, as the broad equity market indexes, and the S&P 400 Multi-line Insurance Index and the S&P 500 Multi-line Insurance Index, as the published industry indexes.

The graph assumes that the value of the investment in our common stock and each index was $100 on December 31, [removed: 2014] [added: 2015] and that all dividends were reinvested.

[removed: ][added: ]

| | [added: | |] Initial Investment at [removed: 12/31/14] [added: 12/31/15] | | | | [added: | |] TOTAL [removed: VALUES December] [added: VALUES December] 31, | | | | | | | | | | | | | | | | | | | [added: | | | | | | | |]

| Security / Index | [removed: 2015] | | [added: 2016] | | [removed: 2016] | | | | 2017 | | | | [added: | |] 2018 | | | | [added: | |] 2019 | | | | | | [added: 2020] | [added: | | | | | | | |]

| | | | | | [added: | | | |] ANNUAL RETURN [removed: PERCENTAGES Years] [added: PERCENTAGES Years] Ended December 31, | | | | | | | | | | | | | | | | | | | [added: | | | | | | | |]

| Security / Index | | | | | [removed: 2015] | | | | 2016 | | | | [added: | |] 2017 | | | | [added: | |] 2018 | | | | [added: | |] 2019 | | | [added: | | | 2020 | | |]

| Assurant, Inc. Common Stock | | | | | [removed: 19.94] | | [removed: %] | | 18.19 | | % | | [added: | |] 10.98 | | % | | [removed: (9.18] | | [removed: )%] [added: (9.18)] | | [added: % | | | |] 49.78 | | % | [added: | | | 6.09 | | % |]

| S&P 500 Index | | | | | [removed: 1.38] | | | | 11.96 | | | | [added: | |] 21.83 | | | | [removed: (4.38] | | [removed: )] [added: (4.38)] | | [added: | | | |] 31.49 | | | [added: | | | 18.40 | | |]

| S&P 400 MidCap Index | | | | | [removed: (2.18] | | [removed: )] | | 20.74 | | | | [added: | |] 16.24 | | | | [removed: (11.08] | | [removed: )] [added: (11.08)] | | [added: | | | |] 26.20 | | | [added: | | | 13.66 | | |]

| S&P 500 Multi-line Insurance Index* | | | | | [removed: 7.24] | | | | 10.27 | | | | [added: | |] 1.03 | | | | [removed: (24.44] | | [removed: )] [added: (24.44)] | | [added: | | | |] 35.64 | | | [added: | | | (18.28) | | |]

| S&P 400 Multi-line Insurance Index* | | | | | [removed: 24.47] | | | | 24.90 | | | | [added: | |] 37.11 | | | | [removed: (11.15] | | [removed: )] [added: (11.15)] | | [added: | | | |] 27.07 | | | [added: | | | (16.19) | | |]

[removed: |] * [removed: |] The S&P 400 Multi-line Insurance Index is comprised of mid-cap companies, while the S&P 500 Multi-line Insurance Index is comprised of large-cap companies. [removed: |]

The table below provides information regarding purchases of our common stock during [removed: 2019.][added: 2020.]

| Period in [removed: 2019] [added: 2020] | [added: | |] Total [removed: Number of Shares Purchased] [added: Number of Shares Purchased] | | | [added: | | |] Average [removed: Price Paid] [added: Price Paid] Per Share | | | | [added: | |] Total Number [removed: of Shares] [added: of Shares] Purchased [removed: as Part] [added: as Part] of [removed: Publicly Announced] [added: Publicly Announced] Plans [removed: or Programs] [added: or Programs] (1) | | | [removed: Approximate Dollar] [added: | | | Approximate Dollar] Value [removed: of Shares] [added: of Shares] that May [removed: Yet be Purchased Under] [added: Yet be Purchased Under] the Plans or Programs (1) | | |

[removed: | (1) | Shares] [added: (1)Shares] purchased pursuant to the November [removed: 14, 2016] [added: 5, 2018] publicly announced share repurchase authorization of up to $600.0 million of outstanding common [removed: stock (which was depleted in the third quarter of 2019) and the November 5, 2018 publicly announced share repurchase authorization of up to |][added: stock.]

As of December 31, [removed: 2019,] [added: 2020,] approximately [removed: $486.3] [added: $186.5] million [added: aggregate cost at purchase] remained [added: unused] under the November 2018 authorization.

Any determination to pay dividends will be at the discretion of the Board and will be dependent upon various [removed: factors] [added: factors,] including: our subsidiaries’ payment 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.

Our insurance subsidiaries are subject to significant regulatory and [removed: contractual] [added: other] restrictions limiting their ability to declare and pay dividends.

See “Item 1A *–* Risk Factors *–* Financial Risks *–* *Our subsidiaries’ inability to pay us sufficient dividends could prevent us from meeting our obligations and paying future stockholder dividends.*” For the year ending December 31, [removed: 2020,] [added: 2021,] the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us under applicable laws and regulations, without prior regulatory approval, is [removed: $423.7] [added: $542.4] million.

Dividends or returns of capital paid by our subsidiaries, net of infusions and excluding amounts used for acquisitions or received from dispositions, was approximately [removed: $748.0] [added: $821.0] million for the year ended December 31, [removed: 2019,] [added: 2020,] of which [removed: $444.0] [added: $490.4] million was generated by our U.S. domiciled insurance subsidiaries.

As of December 31, [removed: 2019,] [added: 2020,] we had 2,875,000 shares of the MCPS issued and outstanding.

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| Assurant, Inc. Common Stock | | | $ | 100.00 | | | | | $ | 118.19 | | | | | $ | 131.17 | | | | | $ | 119.13 | | | | | $ | 178.44 | | | | | $ | 189.32 | |

| S&P 500 Index | | | 100.00 | | | | | | 111.96 | | | | | | 136.40 | | | | | | 130.42 | | | | | | 171.49 | | | | | | 203.04 | | |

| S&P 400 MidCap Index | | | 100.00 | | | | | | 120.74 | | | | | | 140.35 | | | | | | 124.80 | | | | | | 157.49 | | | | | | 179.00 | | |

| S&P 500 Multi-line Insurance Index* | | | 100.00 | | | | | | 110.27 | | | | | | 111.41 | | | | | | 84.18 | | | | | | 114.18 | | | | | | 93.31 | | |

| S&P 400 Multi-line Insurance Index* | | | 100.00 | | | | | | 124.90 | | | | | | 171.24 | | | | | | 152.15 | | | | | | 193.34 | | | | | | 162.05 | | |

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| January 1 – January 31 | | | 117,870 | | | | | | $ | 131.23 | | | | | 117,870 | | | | | | $ | 470.8 | |

| February 1 – February 28 | | | 134,000 | | | | | | 136.52 | | | | | | 134,000 | | | | | | 452.5 | | |

| March 1 – March 31 | | | 229,097 | | | | | | 102.30 | | | | | | 229,097 | | | | | | 429.0 | | |

| Total first quarter | | | 480,967 | | | | | | 118.92 | | | | | | 480,967 | | | | | | 429.0 | | |

| April 1 – April 30 | | | 162,000 | | | | | | 104.96 | | | | | | 162,000 | | | | | | 412.1 | | |

| May 1 – May 31 | | | 92,000 | | | | | | 96.46 | | | | | | 92,000 | | | | | | 403.2 | | |

| June 1 – June 30 | | | — | | | | | | — | | | | | | — | | | | | | 403.2 | | |

| Total second quarter | | | 254,000 | | | | | | 101.88 | | | | | | 254,000 | | | | | | 403.2 | | |

| July 1 – July 31 | | | — | | | | | | — | | | | | | — | | | | | | 403.2 | | |

| August 1 – August 31 | | | 242,000 | | | | | | 123.28 | | | | | | 242,000 | | | | | | 373.4 | | |

| September 1 – September 30 | | | 335,476 | | | | | | 120.03 | | | | | | 335,476 | | | | | | 333.1 | | |

| Total third quarter | | | 577,476 | | | | | | 121.39 | | | | | | 577,476 | | | | | | 333.1 | | |

| October 1 – October 31 | | | 330,000 | | | | | | 123.83 | | | | | | 330,000 | | | | | | 292.2 | | |

| November 1 – November 30 | | | 293,532 | | | | | | 133.44 | | | | | | 293,532 | | | | | | 253.1 | | |

| December 1 – December 31 | | | 503,000 | | | | | | 132.50 | | | | | | 503,000 | | | | | | 186.5 | | |

| Total fourth quarter | | | 1,126,532 | | | | | | 130.20 | | | | | | 1,126,532 | | | | | | 186.5 | | |

| Total January 1 – December 31 | | | 2,438,975 | | | | | | $ | 122.94 | | | | | 2,438,975 | | | | | | $ | 186.5 | |

On

January 12, 2021, we publicly announced that the Board authorized the repurchase of up to an additional $600.0 million aggregate cost at purchase of our outstanding common stock.

Pursuant to its terms, the MCPS will convert into shares of common stock on March 15, 2021.

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| Assurant, Inc. Common Stock | $ | 100.00 | | | $ | 119.94 | | | $ | 141.76 | | | $ | 157.33 | | | $ | 142.89 | | | $ | 214.02 | |

| S&P 500 Index | 100.00 | | | | 101.38 | | | | 113.51 | | | | 138.29 | | | | 132.23 | | | | 173.86 | | |

| S&P 400 MidCap Index | 100.00 | | | | 97.82 | | | | 118.11 | | | | 137.30 | | | | 122.08 | | | | 154.07 | | |

| S&P 500 Multi-line Insurance Index* | 100.00 | | | | 107.24 | | | | 118.26 | | | | 119.48 | | | | 90.27 | | | | 122.45 | | |

| S&P 400 Multi-line Insurance Index* | 100.00 | | | | 124.47 | | | | 155.46 | | | | 213.15 | | | | 189.38 | | | | 240.65 | | |

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| January 1 – January 31 | 189,230 | | | $ | 93.43 | | | 189,230 | | | $ | 743.5 | |

| February 1 – February 28 | 152,000 | | | 98.39 | | | | 152,000 | | | 728.5 | | |

| March 1 – March 31 | 184,449 | | | 97.07 | | | | 184,449 | | | 710.6 | | |

| Total first quarter | 525,679 | | | 96.14 | | | | 525,679 | | | 710.6 | | |

| April 1 – April 30 | 196,583 | | | 94.37 | | | | 196,583 | | | 692.1 | | |

| May 1 – May 31 | 184,000 | | | 97.13 | | | | 184,000 | | | 674.2 | | |

| June 1 – June 30 | 131,000 | | | 104.93 | | | | 131,000 | | | 660.5 | | |

| Total second quarter | 511,583 | | | 98.06 | | | | 511,583 | | | 660.5 | | |

| July 1 – July 31 | 154,000 | | | 111.57 | | | | 154,000 | | | 643.3 | | |

| August 1 – August 31 | 125,186 | | | 118.80 | | | | 125,186 | | | 628.4 | | |

| September 1 – September 30 | 266,000 | | | 125.38 | | | | 266,000 | | | 595.1 | | |

| Total third quarter | 545,186 | | | 119.97 | | | | 545,186 | | | 595.1 | | |

| October 1 – October 31 | 132,322 | | | 125.33 | | | | 132,322 | | | 578.5 | | |

| November 1 – November 30 | 384,000 | | | 131.75 | | | | 384,000 | | | 527.9 | | |

| December 1 – December 31 | 318,728 | | | 130.55 | | | | 318,728 | | | 486.3 | | |

| Total fourth quarter | 835,050 | | | 130.28 | | | | 835,050 | | | 486.3 | | |

| Total January 1 – December 31 | 2,417,498 | | | $ | 113.71 | | | 2,417,498 | | | $ | 486.3 | |

an additional $600.0 million of outstanding common stock.

| | [added: | |] For the Years Ended December 31, | | | | | | | | | | | | | | | | | | | [added: | | | | | | | |]

| | [added: | | 2020 | | | | | |] 2019 | | | | [added: | |] 2018 | | | | [removed: 2017] | | [added: 2017] | | [removed: 2016] | | | | [removed: 2015] [added: 2016] | | |

| | [added: | |] (in millions except number of shares and per share amounts) | | | | | | | | | | | | | | | | | | | [added: | | | | | | | |]

| Consolidated Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | |]

| Revenues | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | |]

| Net earned premiums | [added: | |] $ | [removed: 8,020.0] [added: 8,342.7] | | | [added: | |] $ | [removed: 6,156.9] [added: 8,020.0] | | | [added: | |] $ | [removed: 4,404.1] [added: 6,156.9] | | | [added: | |] $ | [removed: 5,007.3] [added: 4,404.1] | | | [added: | |] $ | [removed: 8,351.0] [added: 5,007.3] | |

| Fees and other income | [added: | | 1,182.7 | | | | | |] 1,311.2 | | | | [added: | |] 1,308.1 | | | | [removed: 1,383.1] | | [added: 1,383.1] | | [removed: 1,422.5] | | | | [removed: 1,303.5] [added: 1,422.5] | | |

| Net investment income | [added: | | 574.9 | | | | | |] 675.0 | | | | [added: | |] 598.4 | | | | [removed: 493.8] | | [added: 493.8] | | [removed: 515.7] | | | | [removed: 626.2] [added: 515.7] | | |

| Net realized [removed: gains] (losses) [added: gains] on investments | [added: | | (16.2) | | | | | |] 66.3 | | | | [removed: (62.7] | | [removed: )] [added: (62.7)] | | [removed: 30.1] | | | | [removed: 162.2] [added: 30.1] | | | | [removed: 31.8] | | [added: 162.2] | [added: | |]

| Amortization of deferred gains and gains on disposal of businesses | [added: | | 10.7 | | | | | |] 14.3 | | | | [added: | |] 56.9 | | | | [removed: 103.9] | | [added: 103.9] | | [removed: 394.5] | | | | [removed: 13.0] [added: 394.5] | | |

| Gain on pension plan curtailment | [added: | |] — | | | | [added: | |] — | | | | [removed: —] | | [added: —] | | [removed: 29.6] | | | | — | | | [added: | | | 29.6 | | |]

| Total revenues (1) | [added: | | 10,094.8 | | | | | |] 10,086.8 | | | | [added: | |] 8,057.6 | | | | [removed: 6,415.0] | | [added: 6,415.0] | | [removed: 7,531.8] | | | | [removed: 10,325.5] [added: 7,531.8] | | |

| Benefits, losses and expenses | | | | | | | | | | | | | | | | | | | | [added: | | | | | | | | | |]

| Policyholder benefits [removed: (2)] | [added: | | 2,549.3 | | | | | |] 2,654.7 | | | | [added: | |] 2,342.6 | | | | [removed: 1,870.6] | | [added: 1,870.6] | | [removed: 1,808.5] | | | | [removed: 4,742.5] [added: 1,808.5] | | |

| Amortization of deferred acquisition costs and value of businesses acquired | [added: | | 3,672.0 | | | | | |] 3,322.1 | | | | [added: | |] 2,300.8 | | | | [removed: 1,340.0] | | [added: 1,340.0] | | [removed: 1,351.3] | | | | [removed: 1,402.6] [added: 1,351.3] | | |

| Underwriting, general and administrative expenses | [added: | | 3,110.0 | | | | | |] 3,250.5 | | | | [added: | |] 2,980.4 | | | | [removed: 2,710.4] | | [added: 2,710.4] | | [removed: 3,442.8] | | | | [removed: 3,924.1] [added: 3,442.8] | | |

| Iké net losses | [removed: 163.0] | | [added: 5.9] | | [removed: —] | | | | [added: 163.0 | | | | | |] — | | | | [added: | |] — | | | | [added: | |] — | | |

| Interest expense | [added: | | 104.5 | | | | | |] 110.6 | | | | [added: | |] 100.3 | | | | [removed: 49.5] | | [added: 49.5] | | [removed: 57.6] | | | | [removed: 55.1] [added: 57.6] | | |

| Loss on extinguishment of debt | [added: | | — | | | | | |] 31.4 | | | | [added: | |] — | | | | [removed: —] | | [added: —] | | [removed: 23.0] | | | | [removed: —] [added: 23.0] | | |

| Total benefits, losses and expenses (1) | [added: | | 9,579.5 | | | | | |] 9,532.3 | | | | [added: | |] 7,724.1 | | | | [removed: 5,970.5] | | [added: 5,970.5] | | [removed: 6,683.2] | | | | [removed: 10,124.3] [added: 6,683.2] | | |