filings.toolsItem 16. Form 10-K Summary
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Item 16. Form 10-K Summary
None.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized on February 19, 2026.
| ASSURANT, INC. | ||||||||
| By: | /s/ KEITH W. DEMMINGS | |||||||
| Name: | Keith W. Demmings | |||||||
| Title: | President, Chief Executive Officer and Director (Principal Executive Officer) |
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Report has been signed below by the following persons on behalf of the registrant in the capacities indicated on February 19, 2026.
| Signature | Title | |||||||
| /s/ KEITH W. DEMMINGS | President, Chief Executive Officer and Director (Principal Executive Officer) | |||||||
| Keith W. Demmings | ||||||||
| /s/ KEITH R. MEIER | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||||||
| Keith R. Meier | ||||||||
| /s/ DIMITRY DIRIENZO | Senior Vice President, Chief Accounting Officer and Controller (Principal Accounting Officer) | |||||||
| Dimitry DiRienzo | ||||||||
| * | Non-Executive Board Chair | |||||||
| Elaine D. Rosen | ||||||||
| * | Director | |||||||
| Rajiv Basu | ||||||||
| * | Director | |||||||
| Lynn S. Blake | ||||||||
| * | Director | |||||||
| J. Braxton Carter | ||||||||
| * | Director | |||||||
| Harriet Edelman | ||||||||
| * | Director | |||||||
| Sari Granat | ||||||||
| * | Director | |||||||
| Debra J. Perry | ||||||||
| * | Director | |||||||
| Ognjen Redzic | ||||||||
| * | Director | |||||||
| Paul J. Reilly | ||||||||
| * | Director | |||||||
| Kevin Warren | ||||||||
| *By: | /S/ KEITH R. MEIER | |||||||
| Name: | Keith R. Meier | |||||||
| Attorney-in-Fact |
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of Assurant, Inc.
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheets of Assurant, Inc. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations, of comprehensive income, of changes in stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes and financial statement schedules listed in the index appearing under Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
F-1
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Valuation of Claims and Benefits Payable Reserves for Global Lifestyle and Global Housing Short Duration Insurance Contracts
As described in Notes 2 and 16 to the consolidated financial statements, the Company maintains claims and benefits payable reserves for short duration insurance contracts. Reserves are established using generally accepted actuarial methods and reflect judgments about expected future claim payments. The reserve liability is based on the expected ultimate cost of settling the claims. As of December 31, 2025, the Company’s total liability for claims and benefits payable was $2.10 billion, which included $1.87 billion of liabilities for short duration contracts within the Global Lifestyle and Global Housing reporting segments. Claims and benefits payable reserves include case reserves for known claims which are unpaid as of the balance sheet date; incurred but not reported reserves for claims where the insured event has occurred but has not been reported as of the balance sheet date; and loss adjustment expense reserves for the expected handling costs of settling the claims. Factors used in the calculation of the reserves include experience derived from historical claim payments and actuarial assumptions. As described by management, the best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of different actuarial methods that are applied consistently each period, considering significant assumptions including projected loss development factors and expected loss ratios.
The principal considerations for our determination that performing procedures relating to the valuation of claims and benefits payable reserves for short duration insurance contracts is a critical audit matter are (i) the significant judgment by management when determining their estimates; (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating audit evidence related to the actuarial methods and projected loss development factors and expected loss ratio assumptions; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the valuation of claims and benefits payable reserves for short duration insurance contracts, including controls over the selection of actuarial methods, completeness and accuracy of claims data and the development of the significant assumptions. On a test basis, these procedures also included, among others, testing the completeness and accuracy of historical claims data provided by management and the involvement of professionals with specialized skill and knowledge to assist in either (i) testing management’s process for determining the estimates by evaluating the appropriateness of management’s actuarial methods and the reasonableness of projected loss development factors and expected loss ratio assumptions; or (ii) developing an actuarially determined independent estimate utilizing actual historical data and loss development patterns, as well as industry data and other benchmarks, and comparing this independent estimate to management’s actuarially determined reserves.
/s/ PricewaterhouseCoopers LLP
New York, New York
February 19, 2026
We have served as the Company’s auditor since 2000.
F-2
Assurant, Inc.
Consolidated Balance Sheets
As of December 31, 2025 and 2024
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions except number of shares and per share amounts) | |||||||||||
| Assets | |||||||||||
| Investments: | |||||||||||
| Fixed maturity securities available for sale, at fair value (net of allowances for credit losses of $1.9 and zero at December 31, 2025 and 2024, respectively; amortized cost – $8,635.3 and $7,524.8 at December 31, 2025 and 2024, respectively) | $ | 8,577.7 | $ | 7,175.1 | |||||||
| Equity securities at fair value | 207.1 | 208.5 | |||||||||
| Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $6.7 and $6.5 at December 31, 2025 and 2024, respectively) | 324.7 | 342.5 | |||||||||
| Short-term investments | 379.5 | 281.6 | |||||||||
| Other investments | 573.0 | 536.8 | |||||||||
| Total investments | 10,062.0 | 8,544.5 | |||||||||
| Cash and cash equivalents | 1,834.1 | 1,807.7 | |||||||||
| Premiums and accounts receivable (net of allowances for credit losses of $10.4 and $7.2 at December 31, 2025 and 2024, respectively) | 1,989.4 | 2,054.0 | |||||||||
| Reinsurance recoverables (net of allowances for credit losses of $5.2 and $5.0 at December 31, 2025 and 2024, respectively) | 6,471.3 | 7,579.5 | |||||||||
| Accrued investment income | 135.4 | 130.5 | |||||||||
| Deferred acquisition costs | 10,187.6 | 9,992.8 | |||||||||
| Property and equipment, net | 841.7 | 768.3 | |||||||||
| Goodwill | 2,646.3 | 2,616.0 | |||||||||
| Other intangible assets, net | 522.0 | 535.6 | |||||||||
| Other assets (net of allowances for credit losses of $0.9 and $0.6 at December 31, 2025 and 2024, respectively) | 1,087.4 | 991.7 | |||||||||
| Assets held for sale (Note 3) | 512.4 | — | |||||||||
| Total assets | $ | 36,289.6 | $ | 35,020.6 | |||||||
| Liabilities | |||||||||||
| Future policy benefits and expenses | $ | 55.7 | $ | 536.7 | |||||||
| Unearned premiums | 20,881.4 | 20,211.4 | |||||||||
| Claims and benefits payable | 2,101.2 | 2,914.2 | |||||||||
| Commissions payable | 640.6 | 559.6 | |||||||||
| Funds held under reinsurance | 266.4 | 277.7 | |||||||||
| Accounts payable and other liabilities (including allowances for credit losses of $0.9 and $1.4 at December 31, 2025 and 2024) | 3,766.3 | 3,331.2 | |||||||||
| Debt | 2,206.9 | 2,083.1 | |||||||||
| Liabilities held for sale (Note 3) | 499.5 | — | |||||||||
| Total liabilities | 30,418.0 | 29,913.9 | |||||||||
| Commitments and contingencies (Note 26) | |||||||||||
| Stockholders’ equity | |||||||||||
| Common stock, par value $0.01 per share, 800,000,000 shares authorized, 52,089,008 and 53,129,838 shares issued and 49,792,919 and 50,833,749 shares outstanding at December 31, 2025 and 2024, respectively | 0.5 | 0.5 | |||||||||
| Additional paid-in capital | 1,711.8 | 1,686.8 | |||||||||
| Retained earnings | 4,826.3 | 4,378.3 | |||||||||
| Accumulated other comprehensive loss | (544.2) | (836.1) | |||||||||
| Treasury stock, at cost; 2,296,089 shares at December 31, 2025 and 2024 | (122.8) | (122.8) | |||||||||
| Total equity | 5,871.6 | 5,106.7 | |||||||||
| Total liabilities and equity | $ | 36,289.6 | $ | 35,020.6 |
See the accompanying Notes to the Consolidated Financial Statements
F-3
Assurant, Inc.
Consolidated Statements of Operations
Years Ended December 31, 2025, 2024 and 2023
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions except number of shares and per share amounts) | |||||||||||||||||
| Revenues | |||||||||||||||||
| Net earned premiums | $ | 10,482.9 | $ | 9,795.8 | $ | 9,388.0 | |||||||||||
| Fees and other income | 1,875.9 | 1,638.6 | 1,323.2 | ||||||||||||||
| Net investment income | 527.3 | 518.9 | 489.1 | ||||||||||||||
| Net realized losses on investments (including $6.7, $25.1 and $17.0 of impairment-related losses for the years ended December 31, 2025, 2024 and 2023, respectively) and fair value changes to equity securities | (71.8) | (75.8) | (68.7) | ||||||||||||||
| Total revenues | 12,814.3 | 11,877.5 | 11,131.6 | ||||||||||||||
| Benefits, losses and expenses | |||||||||||||||||
| Policyholder benefits | 2,927.8 | 2,766.5 | 2,521.8 | ||||||||||||||
| Underwriting, selling, general and administrative expenses | 8,688.1 | 8,076.7 | 7,695.1 | ||||||||||||||
| Interest expense | 109.7 | 107.0 | 108.0 | ||||||||||||||
| Loss (gain) on extinguishment of debt (Note 18) | 1.3 | — | (0.1) | ||||||||||||||
| Total benefits, losses and expenses | 11,726.9 | 10,950.2 | 10,324.8 | ||||||||||||||
| Income before income tax expense | 1,087.4 | 927.3 | 806.8 | ||||||||||||||
| Income tax expense | 214.7 | 167.1 | 164.3 | ||||||||||||||
| Net income | $ | 872.7 | $ | 760.2 | $ | 642.5 | |||||||||||
| Earnings Per Common Share | |||||||||||||||||
| Basic | $ | 17.14 | $ | 14.55 | $ | 12.02 | |||||||||||
| Diluted | $ | 16.93 | $ | 14.46 | $ | 11.95 | |||||||||||
| Share Data | |||||||||||||||||
| Weighted average common shares outstanding used in basic per common share calculations | 50,469,633 | 51,703,588 | 52,870,380 | ||||||||||||||
| Plus: Dilutive securities | 617,016 | 349,373 | 327,930 | ||||||||||||||
| Weighted average common shares used in diluted per common share calculations | 51,086,649 | 52,052,961 | 53,198,310 |
See the accompanying Notes to the Consolidated Financial Statements
F-4
Assurant, Inc.
Consolidated Statements of Comprehensive Income
Years Ended December 31, 2025, 2024 and 2023
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Net income | $ | 872.7 | $ | 760.2 | $ | 642.5 | |||||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Change in net unrealized gains on securities, net of taxes of $(60.1), $(5.4) and $(52.6) for the years ended December 31, 2025, 2024 and 2023, respectively | 228.9 | 13.6 | 207.7 | ||||||||||||||
| Change in unrealized gains on derivative transactions, net of taxes of $0.1, $1.7 and $0.3 for the years ended December 31, 2025, 2024 and 2023, respectively | (0.4) | (6.3) | (1.3) | ||||||||||||||
| Change in foreign currency translation, net of taxes of $(5.0), $3.5 and $(2.3) for the years ended December 31, 2025, 2024 and 2023, respectively | 63.7 | (63.3) | 42.1 | ||||||||||||||
| Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, net of taxes of $0.1, $4.0 and $7.2 for the years ended December 31, 2025, 2024 and 2023, respectively | (0.3) | (15.1) | (27.3) | ||||||||||||||
| Total other comprehensive income (loss) | 291.9 | (71.1) | 221.2 | ||||||||||||||
| Total comprehensive income (loss) | $ | 1,164.6 | $ | 689.1 | $ | 863.7 | |||||||||||
See the accompanying Notes to the Consolidated Financial Statements
F-5
Assurant, Inc.
Consolidated Statements of Changes in Stockholders’ Equity
Years Ended December 31, 2025, 2024 and 2023
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance, January 1, 2023 | $ | 0.6 | $ | 1,637.8 | $ | 3,699.3 | $ | (986.2) | $ | (122.8) | $ | 4,228.7 | |||||||||||||||||||||||||||||||||||
| Stock plan exercises | — | 14.9 | — | — | — | 14.9 | |||||||||||||||||||||||||||||||||||||||||
| Stock plan compensation expense | — | 75.1 | — | — | — | 75.1 | |||||||||||||||||||||||||||||||||||||||||
| Common stock dividends ($2.82 per share) | — | — | (152.3) | — | — | (152.3) | |||||||||||||||||||||||||||||||||||||||||
| Acquisition of common stock | — | (59.3) | (161.3) | — | — | (220.6) | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | 642.5 | — | — | 642.5 | |||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | 221.2 | — | 221.2 | |||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | $ | 0.6 | $ | 1,668.5 | $ | 4,028.2 | $ | (765.0) | $ | (122.8) | $ | 4,809.5 | |||||||||||||||||||||||||||||||||||
| Stock plan exercises | — | 14.8 | — | — | — | 14.8 | |||||||||||||||||||||||||||||||||||||||||
| Stock plan compensation expense | — | 81.1 | — | — | — | 81.1 | |||||||||||||||||||||||||||||||||||||||||
| Common stock dividends ($2.96 per share) | — | — | (155.9) | — | — | (155.9) | |||||||||||||||||||||||||||||||||||||||||
| Acquisition of common stock | (0.1) | (77.6) | (254.2) | — | — | (331.9) | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | 760.2 | — | — | 760.2 | |||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | (71.1) | — | (71.1) | |||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | 0.5 | $ | 1,686.8 | $ | 4,378.3 | $ | (836.1) | $ | (122.8) | $ | 5,106.7 | |||||||||||||||||||||||||||||||||||
| Stock plan exercises | — | 15.8 | — | — | — | 15.8 | |||||||||||||||||||||||||||||||||||||||||
| Stock plan compensation expense | — | 85.7 | — | — | — | 85.7 | |||||||||||||||||||||||||||||||||||||||||
| Common stock dividends ($3.28 per share) | — | — | (168.4) | — | — | (168.4) | |||||||||||||||||||||||||||||||||||||||||
| Acquisition of common stock | — | (76.5) | (256.3) | — | — | (332.8) | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | 872.7 | — | — | 872.7 | |||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | 291.9 | — | 291.9 | |||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2025 | $ | 0.5 | $ | 1,711.8 | $ | 4,826.3 | $ | (544.2) | $ | (122.8) | $ | 5,871.6 |
See the accompanying Notes to the Consolidated Financial Statements
F-6
Assurant, Inc.
Consolidated Statements of Cash Flows
Years Ended December 31, 2025, 2024 and 2023
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Operating activities | |||||||||||||||||
| Net income | $ | 872.7 | $ | 760.2 | $ | 642.5 | |||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
| Noncash revenues, expenses, gains and losses included in income: | |||||||||||||||||
| Deferred tax expense (benefit) | 101.4 | 244.9 | (108.5) | ||||||||||||||
| Depreciation and amortization | 250.0 | 223.5 | 196.4 | ||||||||||||||
| Net realized losses on investments, including impairment losses | 71.8 | 75.8 | 68.7 | ||||||||||||||
| Loss (gain) on extinguishment of debt | 1.3 | — | (0.1) | ||||||||||||||
| Restructuring costs | 27.3 | 5.4 | 34.3 | ||||||||||||||
| Loss on sale of business | 10.7 | 8.6 | — | ||||||||||||||
| Stock based compensation expense | 85.7 | 81.1 | 75.1 | ||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||
| Insurance policy reserves and expenses | (266.3) | 1,192.2 | 9.4 | ||||||||||||||
| Premiums and accounts receivable | 95.7 | 172.8 | 120.6 | ||||||||||||||
| Commissions payable | 72.6 | 36.6 | (92.6) | ||||||||||||||
| Reinsurance recoverable | 627.6 | (892.2) | 345.6 | ||||||||||||||
| Funds withheld under reinsurance | (12.7) | (112.6) | 25.4 | ||||||||||||||
| Deferred acquisition costs and value of business acquired (Note 12 and 15) | (136.5) | (26.8) | (81.9) | ||||||||||||||
| Taxes receivable | (4.2) | (116.5) | (92.9) | ||||||||||||||
| Other assets and other liabilities | 11.6 | (254.5) | 27.4 | ||||||||||||||
| Other | 25.2 | (65.8) | (31.3) | ||||||||||||||
| Net cash provided by operating activities | 1,833.9 | 1,332.7 | 1,138.1 | ||||||||||||||
| Investing activities | |||||||||||||||||
| Sales of: | |||||||||||||||||
| Fixed maturity securities available for sale | 1,188.0 | 1,330.9 | 1,464.6 | ||||||||||||||
| Equity securities | 43.5 | 87.6 | 52.7 | ||||||||||||||
| Other invested assets | 60.9 | 91.6 | 90.7 | ||||||||||||||
| Subsidiary, net of cash transferred | — | (5.0) | — | ||||||||||||||
| Maturities, calls, prepayments, and scheduled redemption of: | |||||||||||||||||
| Fixed maturity securities available for sale | 807.1 | 564.4 | 280.2 | ||||||||||||||
| Commercial mortgage loans on real estate | 71.8 | 40.6 | 20.4 | ||||||||||||||
| Purchases of: | |||||||||||||||||
| Fixed maturity securities available for sale | (3,082.2) | (2,286.8) | (2,146.8) | ||||||||||||||
| Equity securities | (32.1) | (60.9) | (3.4) | ||||||||||||||
| Commercial mortgage loans on real estate | (56.0) | (57.2) | (55.6) | ||||||||||||||
| Other invested assets | (110.1) | (101.9) | (49.3) | ||||||||||||||
| Property and equipment and other | (235.5) | (221.3) | (202.5) | ||||||||||||||
| Subsidiaries, net of cash transferred | (23.5) | (12.9) | (0.3) | ||||||||||||||
| Change in short-term investments | (95.7) | (27.0) | (90.8) | ||||||||||||||
| Other | 6.0 | 0.1 | 2.4 | ||||||||||||||
| Net cash used in investing activities | (1,457.8) | (657.8) | (637.7) | ||||||||||||||
| Financing activities | |||||||||||||||||
| Issuance of debt, net of issuance costs (Note 18) | 298.0 | — | 173.2 | ||||||||||||||
| Repayment of debt | (176.3) | — | (225.0) | ||||||||||||||
| Payment of contingent liability | — | — | (2.5) | ||||||||||||||
| Acquisition of common stock | (303.7) | (307.4) | (193.1) | ||||||||||||||
| Common stock dividends paid | (168.4) | (155.9) | (152.3) | ||||||||||||||
| Employee stock purchases and withholdings | (13.8) | (14.2) | (4.2) | ||||||||||||||
| Net cash used in financing activities | (364.2) | (477.5) | (403.9) | ||||||||||||||
| Effect of exchange rate changes on cash and cash equivalents | 14.5 | (17.1) | (5.8) | ||||||||||||||
| Change in cash and cash equivalents | 26.4 | 180.3 | 90.7 | ||||||||||||||
| Cash and cash equivalents at beginning of period | 1,807.7 | 1,627.4 | 1,536.7 | ||||||||||||||
| Cash and cash equivalents at end of period | $ | 1,834.1 | $ | 1,807.7 | $ | 1,627.4 | |||||||||||
See the accompanying Notes to the Consolidated Financial Statements
F-7
Assurant, Inc.
Notes to the Consolidated Financial Statements
(in millions except number of shares and per share amounts)
INDEX OF NOTES
1. Nature of Operations
Assurant, Inc. (the “Company”) is a premier global protection company that partners with the world’s leading brands to safeguard and service connected devices, homes and automobiles. The Company leverages data-driven technology solutions to provide exceptional customer experiences. The Company operates in North America, Latin America, Europe and Asia Pacific through two operating segments: Global Lifestyle and Global Housing. Through its Global Lifestyle segment, the Company provides mobile device solutions, extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection services, commercial equipment protection and other related services (referred to as “Global Automotive”). Through its Global Housing segment, the Company provides lender-placed homeowners, manufactured housing and flood insurance, as well as voluntary manufactured housing, condominium and homeowners insurance (referred to as “Homeowners”); and renters insurance and other products (referred to as “Renters and Other”).
The Company’s common stock is traded on the New York Stock Exchange under the symbol “AIZ.”
2. Summary of Significant Accounting Policies
Basis of Presentation
The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Amounts are presented in United States of America (“U.S.”) Dollars and all amounts
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are in millions, except for number of shares, per share amounts and number of securities. Certain prior period amounts have been revised to reflect current period presentation.
Principles of Consolidation
The Consolidated Financial Statements include the accounts of the Company and its controlled subsidiaries, generally through a greater than 50% ownership of voting rights and voting interests. Equity investments in entities that the Company does not consolidate, but where the Company has significant influence or where the Company has more than a minor influence over the entity’s operating and financial policies, are accounted for under the equity method. All material inter-company transactions and balances are eliminated in consolidation. In order to facilitate the Company’s closing process, financial information from certain foreign subsidiaries and affiliates is reported on a one to three-month lag.
Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts. The items affected by the use of estimates include but are not limited to, investments, reinsurance recoverables, premium and accounts receivables, deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred income taxes and associated valuation allowances, goodwill, intangible assets, future policy benefits and expenses, unearned premiums, claims and benefits payable, pension and post-retirement liabilities and commitments and contingencies. The estimates are sensitive to market conditions, investment yields, mortality, morbidity, commissions and other acquisition expenses, policyholder behavior and other factors. Actual results could differ from the estimates recorded. The Company believes all amounts reported are reasonable and adequate.
Fair Value
The Company uses an exit price for its fair value measurements. An exit price is defined as the amount received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In measuring fair value, the Company gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. See Note 9 for additional information.
Foreign Currency
For foreign affiliates where the local currency is the functional currency, unrealized foreign currency translation gains and losses net of deferred income taxes have been reflected in accumulated other comprehensive income (“AOCI”). For Canada, Argentina, Brazil, Chile and Mexico, deferred taxes have not been provided for unrealized currency translation gains and losses since the Company intends to indefinitely reinvest the earnings in these other jurisdictions. Transaction gains and losses on assets and liabilities denominated in foreign currencies are recorded in underwriting, selling, general and administrative expenses in the consolidated statements of operations during the period in which they occur.
Management generally identifies highly inflationary markets as those markets whose cumulative inflation rates over a three-year period exceeds 100%, in addition to considering other qualitative and quantitative factors. Beginning July 1, 2018, as a result of the classification of Argentina’s economy as highly inflationary, the functional currency of our Argentina subsidiaries was changed from the local currency to U.S. Dollars. The subsidiaries’ non-U.S. Dollar denominated monetary assets and liabilities have been subject to remeasurement since July 1, 2018. For the years ended December 31, 2025, 2024 and 2023, the remeasurement resulted in $7.3 million, $3.0 million and $29.4 million, respectively, of net pre-tax losses which the Company classified within underwriting, selling, general and administrative expenses in the consolidated statements of operations. Based on the relative size of the subsidiaries’ operations and net assets subject to remeasurement, the Company does not anticipate the ongoing remeasurement to have a material impact on the Company’s results of operations or financial condition.
Variable Interest Entities
The Company may enter into agreements with other entities that are deemed to be variable interest entities (“VIEs”). Entities that do not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest are referred to as VIEs. A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (the “primary beneficiary”) as a result of having both the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, the nature of the VIE’s operations and purpose and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company only holds non-consolidated VIEs as of December 31, 2025 and 2024.
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Investments
Fixed maturity securities are classified as available-for-sale as defined in the investments guidance and are reported at fair value. If the fair value is higher than the amortized cost for fixed maturity securities, the excess is an unrealized gain; and, if lower than amortized cost, the difference is an unrealized loss. Net unrealized gains and losses on securities classified as available-for-sale, less deferred income taxes, are included in AOCI.
Presentation of credit-related impairments is shown as an allowance, recognizing credit impairments upon purchase of securities as applicable, and requiring reversals of previously recognized credit-related impairments when applicable.
For available for sale fixed maturity securities in an unrealized loss position for which the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than the amortized cost basis, changes to the credit rating of the security by a nationally recognized statistical ratings organization and any adverse conditions specifically related to the security, industry or geographic area, among other factors. If this assessment indicates a potential credit loss may exist, the present value of cash flows expected to be collected are compared to the security’s amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit-related impairment exists, and a charge to income and an associated allowance for credit losses is recorded for the credit-related impairment. Any impairment not related to credit losses is recorded through other comprehensive income. The amount of the allowance for credit losses is limited to the amount by which fair value is less than the amortized cost basis. Upon recognizing a credit-related impairment, the cost basis of the security is not adjusted.
Subsequent changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. For fixed maturities where the Company records a credit loss, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. Write-offs are charged against the allowance when management concludes the financial asset is uncollectible. For fixed maturities where the Company expects a recovery in value, the effective yield method is utilized, and the investment is amortized to par.
For available for sale fixed maturity securities that the Company intends to sell, or for which it is more likely than not that the Company will be required to sell before recovery of its amortized cost basis, the entire impairment loss, or difference between the fair value and amortized cost basis of the security, is recognized in net realized gains (losses) on investments and fair value changes to equity securities. The new cost basis of the security is the previous amortized cost basis less the impairment recognized and is not adjusted for any subsequent recoveries in fair value.
The Company reports receivables for accrued investment income separately from fixed maturities available for sale and elected not to measure allowances for credit losses for accrued investment income as uncollectible balances are written off in a timely manner.
Equity securities that have readily determinable fair values are measured at fair value with changes in fair value recognized in net realized gains (losses) on investments and fair value changes to equity securities on the Company’s consolidated statements of operations. The Company has certain equity investments that do not have readily determinable fair values and the Company has elected the measurement alternative to carry such investments at cost, less impairment and to mark to fair value when observable prices in identical or similar investments from the same issuer occur.
Equity securities accounted for under the measurement alternative are impaired if a qualitative assessment based upon several indicators such as earnings performance, offers to sell or purchase, ability to continue as a going concern and macroeconomic factors indicates the equity investment is impaired and the fair value of the investment is less than its carrying value. If a qualitative assessment indicates impairment, a quantitative analysis, which uses probability weighted potential outcomes, is performed to determine the amount of the impairment to be recognized that result in a fair value measurement. Equity securities accounted for under the measurement alternative are included within other investments in the consolidated balance sheets.
Commercial mortgage loans on real estate are reported at unpaid principal balances, adjusted for amortization of premium or discount, less any allowance for credit losses. The allowance for the Company’s commercial mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, utilizing a probability-of-default and loss given default methodologies, which incorporate various probability weighted economic scenarios. The probability of default is estimated using macroeconomic factors as well as individual loan characteristics, including loan-to-value (“LTV”) and debt service coverage ratios (“DSC”), loan term, collateral type, geography and underlying credit. The loss given default is driven primarily by the type and value of underlying collateral, and to a lesser extent by expected liquidation costs and time to recovery. Each loan is analyzed individually based on loan-specific data elements to estimate the expected loss and then aggregated.
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The Company places loans on nonaccrual status after 90 days of delinquent payments (unless the loans are secured and in the process of collection). A loan may be placed on nonaccrual status before this time if information is available that suggests collection is unlikely. The Company charges off loan and accrued interest balances that are deemed uncollectible. Charge offs are recorded to net income in the period deemed uncollectible. Refer to Note 4 for further details on the allowance for credit losses on commercial mortgage loans.
Short-term investments include securities and other investments with durations of one year or less, but greater than three months, between the date of purchase and maturity. These amounts are reported at cost or amortized cost, which approximates fair value.
Other investments consist primarily of investments in joint ventures, partnerships, equity investments that do not have readily determinable fair values, invested assets associated with a modified coinsurance arrangement, invested assets associated with the Assurant Investment Plan (the “AIP”), the American Security Insurance Company Investment Plan (the “ASIC”) and the Assurant Deferred Compensation Plan (the “ADC”), as well as policy loans. The joint ventures and partnerships are valued according to the equity method of accounting. In applying the equity method, the Company uses financial information provided by the investee, generally on a three-month lag. The invested assets related to the modified coinsurance arrangement, the AIP, the ASIC and the ADC are classified as trading securities. Policy loans are reported at unpaid principal balances, which do not exceed the cash surrender value of the underlying policies.
Realized gains and losses on sales of investments are recognized on the specific identification basis.
Investment income is recorded as earned and reported net of investment expenses. The Company uses the interest method to recognize interest income on its commercial mortgage loans.
The Company anticipates prepayments of principal in the calculation of the effective yield for mortgage-backed securities and structured securities. The retrospective method is used to adjust the effective yield for the majority of the Company’s mortgage-backed and structured securities. For credit-sensitive or credit impaired structured securities, the effective yield is recalculated on a prospective basis, primarily our commercial mortgage-backed, residential mortgage-backed and asset backed securities.
Cash and Cash Equivalents
The Company considers all highly liquid securities and other investments with durations of three months or less between the date of purchase and maturity to be cash equivalents. These amounts are carried at cost, which approximates fair value. Cash balances are reviewed at the end of each reporting period to determine if negative cash balances exist. If negative cash balances exist, the cash accounts are netted with other positive cash accounts of the same bank provided the right of offset exists between the accounts. If the right of offset does not exist, the negative cash balances are reclassified to accounts payable and other liabilities.
Restricted cash and cash equivalents, of $102.0 million and $150.8 million at December 31, 2025 and 2024, respectively, principally related to cash deposits involving insurance programs with restrictions as to withdrawal and use, are classified within cash and cash equivalents in the consolidated balance sheets.
Reinsurance
For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit.
Reinsurance recoverables include amounts related to paid benefits and estimated amounts related to unpaid policy and contract claims, future policyholder benefits and policyholder contract deposits. The cost of reinsurance is recognized as a reduction to premiums earned over the terms of the underlying reinsured policies. Amounts recoverable from reinsurers are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefits reserves and are reported in the consolidated balance sheets. The cost of reinsurance related to long-duration contracts is recognized over the life of the underlying reinsured policies. The ceding of insurance does not discharge the Company’s primary liability to insureds, thus a credit exposure exists to the extent that any reinsurer is unable to meet the obligation assumed in the reinsurance agreements. To mitigate this exposure to reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and typically holds collateral (in the form of funds withheld, trusts and letters of credit) as security under the reinsurance agreements.
The Company accounts for credit losses using the expected credit loss model for reinsurance recoverables. The Company uses a probability of default and loss given default methodology in estimating the allowance, whereby the credit ratings of
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reinsurers are used in determining the probability of default. The allowance is established for reinsurance recoverables on paid and unpaid future policy benefits and claims and benefits. Prior to applying default factors, the net exposure to credit risk is reduced for any collateral for which the right of offset exists, such as funds withheld, assets held in trust and letters of credit, which are part of the reinsurance arrangements, with adjustments to include consideration of credit exposure on the collateral. The methodology used by the Company incorporates historical default factors for each reinsurer based on their credit rating using comparably rated bonds as published by a major ratings service. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing and other relevant factors.
Funds held under reinsurance represent amounts contractually held from assuming companies in accordance with reinsurance agreements, primarily from collateral considerations.
Reinsurance premiums assumed are calculated based upon payments received from ceding companies together with accrual estimates, which are based on both payments received and in force policy information received from ceding companies. Any subsequent differences arising on such estimates are recorded in the period in which they are determined.
Premiums and Accounts Receivable
Premiums and accounts receivable includes insurance premiums receivable from policyholders and amounts due from sponsors or agents. The Company accounts for credit losses using the expected credit loss model for premiums and accounts receivable. For receivables due directly from the insured or consumer, the allowance for credit losses is generally calculated by aging the receivable balances and applying default factors based on the Company’s historical collection data. For receivables due from product sponsors or agents, receivable balances are generally segregated by the sponsor or agent and an appropriate default factor is determined based on creditworthiness, billing terms and aging of balances. The financial exposure of a credit loss is determined net of offsets (such as related unearned premium reserves for consumer receivables and receivables net of commissions payable, profit share liabilities and captive reinsurance for balances due from sponsors/agents) prior to applying a default factor.
Deferred Acquisition Costs
Only direct and incremental costs associated with the successful acquisition of new or renewal insurance contracts are deferred to the extent that such costs are deemed recoverable from future premiums. Acquisition costs primarily consist of commissions and premium taxes. Certain direct response advertising expenses are deferred when the primary purpose of the advertising is to elicit sales to customers who can be shown to have specifically responded to the advertising and the direct response advertising results in probable future benefits.
All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred.
Premium deficiency testing is performed annually and generally reviewed quarterly. Such testing involves the use of assumptions including the anticipation of investment income to determine if anticipated future policy premiums are adequate to recover all DAC and related claims, benefits and expenses. To the extent a premium deficiency exists, it is recognized immediately by a charge to the consolidated statement of operations and a corresponding reduction in DAC. If the premium deficiency is greater than unamortized DAC, a loss (and related liability) is recorded for the excess deficiency.
Short Duration Contracts
Acquisition costs relating to extended service contracts, vehicle service contracts, mobile device protection, credit insurance, lender-placed homeowners insurance and flood, multifamily housing and manufactured housing insurance are amortized over the term of the contracts in relation to premiums earned. These acquisition costs consist primarily of advance commissions paid to agents.
Property and Equipment
Property and equipment are reported at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over estimated useful lives with a maximum of 39.5 years for buildings, a maximum of seven years for furniture and a maximum of five years for equipment. Expenditures for maintenance and repairs are charged to income as incurred. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset.
Property and equipment also include capitalized software costs, comprised of purchased software as well as certain internal and external costs incurred during the application development stage that directly relate to obtaining, developing or upgrading internal use software. Such costs are capitalized and amortized using the straight-line method over their estimated useful lives, not to exceed 15 years. Property and equipment are assessed for impairment when impairment indicators exist.
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Goodwill
Goodwill represents the excess of acquisition costs over the net fair value of identifiable assets acquired and liabilities assumed in a business combination. Goodwill is deemed to have an indefinite life and is not amortized, but rather is tested at least annually for impairment. The Company performs the annual goodwill impairment test as of October 1 each year, or more frequently if indicators of impairment exist. Such indicators include: a significant adverse change in legal factors, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a significant decline in the Company’s expected future cash flows due to changes in company-specific factors or the broader business climate. The evaluation of such factors requires considerable management judgment.
Goodwill is tested for impairment at the reporting unit level, which is either at the operating segment or one level below, if that component is a business for which discrete financial information is available and segment management regularly reviews such information. Components within an operating segment can be aggregated into one reporting unit if they have similar economic characteristics.
At the time of the annual goodwill test, the Company has the option to first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. The Company is required to perform an additional quantitative step if it determines qualitatively that it is more likely than not (likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Otherwise, no further testing is required.
If the Company determines that it is more likely than not that the reporting unit’s fair value is less than the carrying value, or otherwise elects to perform the quantitative testing, the Company compares the estimated fair value of the reporting unit with its net book value. If the reporting unit’s estimated fair value exceeds its net book value, goodwill is deemed not to be impaired. If the reporting unit’s net book value exceeds its estimated fair value, an impairment loss will be recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit. Refer to Note 14 for further details on goodwill impairment testing for 2025.
Other Intangible Assets
Intangible assets that have finite lives are amortized over their estimated useful lives based on the pattern in which the intangible asset is consumed, which may be other than straight-line. Estimated useful lives of finite intangible assets are required to be reassessed on at least an annual basis. For intangible assets with finite lives, impairment is recognized if the carrying amount is not recoverable and exceeds the fair value of the other intangible asset. Generally, other intangible assets with finite lives are only tested for impairment if there are indicators of impairment (“triggers”) identified. Triggers include a significant adverse change in the extent, manner or length of time in which the 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.
VOBA represents the value of expected future profits in unearned premium for insurance contracts acquired in an acquisition. For vehicle service contracts and extended service contracts, such as those purchased in connection with the TWG acquisition, the amount is determined using estimates, for premium earnings patterns, paid loss development patterns, expense loads and discount rates applied to cash flows that include a provision for credit risk. The amount determined represents the purchase price paid to the seller for producing the business. For vehicle service contracts and extended service contracts, VOBA is amortized consistent with the premium earning patterns of the underlying in-force contracts. VOBA is tested at least annually in the fourth quarter for recoverability.
Amortization expense and impairment charges for other intangible assets are included in underwriting, selling, general and administrative expenses in the consolidated statements of operations.
Other Assets
Other assets include prepaid items, income tax receivable, deferred income tax assets, right-of-use assets, dealer loans and inventory associated with the Company’s mobile protection business.
Reserves
Reserves are established using generally accepted actuarial methods and reflect judgments about expected future premium and claim payments. Factors used in their calculation include experience derived from historical claim payments, expected future premiums and actuarial assumptions. Calculations incorporate assumptions about the incidence of incurred claims, the extent to which all claims have been reported, reporting lags, expenses, inflation rates, future investment earnings, internal claims processing costs and other relevant factors. The estimation of reserves includes an element of uncertainty given that management is using historical information and methods to project future events and reserve outcomes.
The recorded reserves represent the Company’s best estimate at a point in time of the ultimate costs of settlement and administration of a claim or group of claims based upon actuarial assumptions and projections using facts and circumstances known at the time of calculation. The adequacy of reserves may be impacted by future trends in claims severity, frequency,
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judicial theories of liability and other factors. These variables are affected by both external and internal events, including: changes in the economic cycle, inflation, changes in repair costs, natural or human-made catastrophes, judicial trends, legislative changes and claims handling procedures.
Many of these items are not directly quantifiable and not all future events can be anticipated when reserves are established. Reserve estimates are refined as experience develops. Adjustments to reserves, both positive and negative, are reflected in the consolidated statement of operations in the period in which such estimates are updated. Because establishment of reserves is an inherently complex process involving significant judgment and estimates, there can be no certainty that future settlement amounts for claims incurred through the financial reporting date will not vary from reported claims reserves. Future loss development could require reserves to be increased or decreased, which could have a material effect on the Company’s earnings in the periods in which such increases or decreases are made. However, based on information currently available, the Company believes its reserve estimates are adequate.
The following table provides reserve information as of December 31, 2025 and 2024:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||
| Claims and Benefits Payable | Claims and Benefits Payable | ||||||||||||||||||||||||||||||||||||||||||||||
| Future Policy Benefits and Expenses | Unearned Premiums | Case Reserves | Incurred But Not Reported Reserves | Future Policy Benefits and Expenses | Unearned Premiums | Case Reserves | Incurred But Not Reported Reserves | ||||||||||||||||||||||||||||||||||||||||
| Long Duration Contracts: | |||||||||||||||||||||||||||||||||||||||||||||||
| Non-core operations (1) | $ | 48.4 | $ | 0.1 | $ | 0.9 | $ | 1.0 | $ | 52.5 | $ | — | $ | 1.2 | $ | 0.9 | |||||||||||||||||||||||||||||||
| All other disposed or runoff businesses (2) | 7.3 | — | — | 0.1 | 484.2 | 1.7 | — | 0.1 | |||||||||||||||||||||||||||||||||||||||
| Short Duration Contracts: | |||||||||||||||||||||||||||||||||||||||||||||||
| Global Lifestyle | — | 18,910.1 | 148.7 | 579.9 | — | 18,368.4 | 149.0 | 572.7 | |||||||||||||||||||||||||||||||||||||||
| Global Housing | — | 1,944.7 | 151.1 | 987.8 | — | 1,813.6 | 828.7 | 1,056.6 | |||||||||||||||||||||||||||||||||||||||
| Non-core operations (1) | — | 7.5 | 30.2 | 56.5 | — | 5.8 | 35.5 | 85.9 | |||||||||||||||||||||||||||||||||||||||
| All other disposed or runoff businesses (2) | — | 19.0 | 61.7 | 83.3 | — | 21.9 | 81.7 | 101.9 | |||||||||||||||||||||||||||||||||||||||
| Total | $ | 55.7 | $ | 20,881.4 | $ | 392.6 | $ | 1,708.6 | $ | 536.7 | $ | 20,211.4 | $ | 1,096.1 | $ | 1,818.1 |
(1)Includes certain businesses which the Company has fully exited or expects to fully exit, including the long-tail commercial liability businesses (sharing economy and small commercial businesses), certain legacy long-duration insurance policies and the Company’s operations in mainland China (not Hong Kong). These are included in “non-core operations”, as defined in Note 5, and recorded in the Corporate and Other segment.
(2)Includes business sold through reinsurance or other runoff business reported in the Global Lifestyle segment. As of December 31, 2025, the assets and liabilities of one of the Company’s subsidiaries, including $477.1 million of future policy benefits and expenses, have been transferred to assets and liabilities held for sale. Refer to Note 3 for more information.
Long Duration Contracts
The Company’s long duration contracts are primarily comprised of run-off blocks of long-term care and universal life policies.
The long-term care insurance contracts are fully reinsured and there is no impact to consolidated stockholders’ equity or net income as the reserves are fully reinsured. In fourth quarter 2025, these were classified as liabilities held for sale. Refer to Note 3 for more information.
The long-term care insurance contracts are grouped into cohorts based on the contract’s issue year. Premiums are recognized when due as net earned premiums in the consolidated statement of operations. A future policy benefits and expenses reserve is recorded as the present value of estimated future policy benefits and expenses less the present value of estimated future net premiums. The net premium ratio (“NPR”) approach is used to recognize a liability when expected insurance benefits are accrued over the life of the contract in proportion to premium revenue. Policy expense assumptions are locked in as of December 31, 2020 as the long-term care insurance products are in run-off as of the transition date. Actual premiums and benefits are recognized on a quarterly basis in the consolidated statement of operations allocated in proportion to prior period cash flow projections at the cohort level. The updated cash flows used in the calculation are discounted using the discount rate used in the last premium deficiency test update prior to December 31, 2020 (the “original discount rate”) and presented as interest expense in the consolidated statement of operations. The revised NPR is used to measure benefit expense based on the recognized premium revenue in the period. The difference between the updated future policy benefits and expenses reserve opening period and previous ending period due to updating the NPR is presented as a remeasurement gain or loss (e.g., a cumulative catch-up adjustment) in policyholder benefits in the Company’s consolidated statements of operations.
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A remeasurement of the ending reporting period future policy benefits and expenses reserve is calculated using the current upper medium grade fixed-income corporate bond instrument yield as of the consolidated balance sheet ending period (the “current discount rate”). The current discount rate used is an externally published US corporate A index weighted average spot rate that is updated quarterly and effectively matches the duration of the expected cash flow streams of the long-term care reserves. The difference between the ending period future policy benefits and expenses reserve measured using the original discount rate and the future policy benefits and expenses reserve measured using the current discount rate is recorded in AOCI in the Company’s consolidated statements of comprehensive income.
Future policy benefits and expense reserves for universal life insurance policies consist of policy account balances before applicable surrender charges that are being recognized in income over the terms of the policies. Policy benefits charged to expense during the period include amounts paid in excess of policy account balances and interest credited to policy account balances.
Short Duration Contracts
The Company’s short duration contracts include products and services in the Global Lifestyle and Global Housing segments, and Assurant Employee Benefits policies fully covered by reinsurance and certain medical policies no longer offered. For Global Lifestyle, the main product lines include extended service contracts, vehicle services contracts, mobile device protection and credit insurance. The main product lines for Global Housing include lender-placed homeowners and flood, Multifamily Housing and manufactured housing. For short duration contracts, claims and benefits payable reserves are recorded when insured events occur. The liability is based on the expected ultimate cost of settling the claims. The claims and benefits payable reserves include (1) case reserves for known but unpaid claims as of the balance sheet date; (2) incurred but not reported (“IBNR”) reserves for claims where the insured event has occurred but has not been reported to the Company as of the balance sheet date; and (3) loss adjustment expense reserves for the expected handling costs of settling the claims. Factors used in the calculation include experience derived from historical claim payments and actuarial assumptions including loss development factors and expected loss ratios.
The Company has exposure to asbestos, environmental and other general liability claims arising from its participation in various reinsurance pools from 1971 through 1985. This exposure arose from a short duration contract that the Company discontinued writing many years ago. The Company carries case reserves for these liabilities as recommended by the various pool managers and IBNR reserves. Estimation of these liabilities is subject to greater than normal variation and uncertainty due to the general lack of sufficiently detailed data, reporting delays and absence of a generally accepted actuarial methodology for determining the exposures. There are significant unresolved industry legal issues, including such items as whether coverage exists and what constitutes an occurrence. In addition, the determination of ultimate damages and the final allocation of losses to financially responsible parties are highly uncertain.
Changes in the estimated liabilities are recorded as a charge or credit to policyholder benefits as estimates are updated. Fees paid by the National Flood Insurance Program for processing and adjudication services are reported as a reduction of underwriting, selling, general and administrative expenses.
Debt
The Company reports debt net of acquisition costs, unamortized discount or premium and repurchases. Interest expense related to debt is expensed as incurred. See Note 18 for additional information.
Contingencies
A loss contingency is recorded if reasonably estimable and probable. The Company establishes reserves for these contingencies at the best estimate, or if no one estimated amount within the range of possible losses is more probable than any other, the Company records an estimated reserve at the low end of the estimated range. Contingencies affecting the Company primarily relate to legal and regulatory matters, which are inherently difficult to evaluate and are subject to significant changes.
Other Liabilities
With respect to the deductible portion of a high deductible claim, the Company manages and pays the entire claim on behalf of the insured and is reimbursed by the insured for the deductible portion of the claim. These recoverable amounts represent a credit exposure. The Company accounts for credit losses using the expected credit loss model for high deductible recoverables. The Company uses a probability of default and loss given default methodology in estimating the allowance, whereby the credit ratings of insureds are used in determining the probability of default. The allowance is established for unsecured portion of the high deductible recoverables on unpaid future policy benefits. The methodology used by the Company incorporates historical default factors for each insured based on their credit rating using comparably rated bonds as published by a major ratings service. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in insured credit standing and other relevant factors.
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Retirement of Treasury Stock
The Company accounts for the retirement of repurchased shares using the par value method. This method of accounting allocates the cost of repurchased and retired shares between paid-in capital and retained earnings by comparing the price of shares repurchased to the original issue proceeds of those shares. When the repurchase price of the shares is greater than the original issue proceeds, the excess is charged to retained earnings. The Company uses an average cost method to determine the cost of the repurchased shares to be retired.
Premiums
Short Duration Contracts
The Company’s short duration contracts revenue is recognized over the contract term in proportion to the amount of insurance protection provided.
Premiums revenue from vehicle and extended service contracts are earned over the term of the contract, which are typically between three and five years, based on loss emergence experience. Mobile device protection and credit insurance are monthly policies and premium is earned on a monthly basis.
Premiums for lender-placed homeowners, manufactured housing and flood insurance, and renters insurance are generally earned on a pro-rata basis over the term of the policies, which are typically over twelve months.
Reinsurance reinstatement premiums are recognized in the same period as the loss event that gave rise to the reinstatement premium and are netted against net earned premiums in the consolidated statements of operations.
Long Duration Contracts
Premiums for the Company’s run-off blocks of long-term care insurance contracts are recognized as revenue when due from the policyholder. For universal life insurance, revenues consist of charges assessed against policy balances. These premiums are ceded.
Fees and Other Income
The Company derives fees and other income from providing administrative services, mobile-related services and mortgage property risk management services. These fees are recognized as the services are performed.
The Company reports revenues related to long duration and short duration insurance contracts as premiums, including insurance contracts written by non-insurance affiliates, such as certain extended service contracts, consistent with the Company’s principal business of insurance. Components of consideration paid by the insured are generally not separated as fees and other income. However, when a component of the consideration paid by an insured both does not involve fulfilling the insurance obligation (in that it does not involve acquisition, claims or other administrative aspects of the insurance contract) and the related service could have been written as a separate contract, it is reported in fees and other income.
Dealer obligor service contracts are sales in which an unaffiliated retailer/dealer is the obligor and the Company provides administrative services only. For these contract sales, the Company recognizes administrative fee revenue on a pro-rata basis over the terms of the service contract which correspond to the period in which the services are performed.
The unexpired portion of fee revenues are deferred and amortized over the term of the contracts. These unexpired amounts are reported in accounts payable and other liabilities on the consolidated balance sheets.
Underwriting, Selling, General and Administrative Expenses
Underwriting, selling, general and administrative expenses consist primarily of commissions, premium taxes, licenses, fees, salaries and personnel benefits and other general operating expenses and are expensed as incurred.
Income Taxes
Current federal income taxes are recognized based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income taxes are recorded for temporary differences between the financial reporting basis and income tax basis of assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the periods in which the Company expects the temporary differences to reverse. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized. The impact of changes in tax rates on all deferred tax assets and liabilities are required to be reflected within income on the enactment date, regardless of the financial statement component where the deferred tax originated.
The Company classifies net interest expense related to tax matters and any applicable penalties as a component of income tax expense.
F-16
Earnings Per Common Share
Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts that can be converted into common stock were exercised as of the end of the period, if dilutive. Restricted stock and restricted stock units that have non-forfeitable rights to dividends or dividend equivalents are included in calculating basic and diluted earnings per common share under the two-class method.
Comprehensive Income
Comprehensive income is comprised of net income, net unrealized gains and losses on foreign currency translation, net unrealized gains and losses on securities classified as available for sale, and expenses for pension and post-retirement plans, less deferred income taxes.
Leases
The Company records expenses for operating leases on a straight-line basis over the lease term. The Company recognizes assets and liabilities associated with leases on the consolidated balance sheet. The Company and its subsidiaries lease office space and equipment under operating lease arrangements for which the Company is the lessee. Right-of-use asset, lease liabilities and deferred rent liability related to operating leases with terms in excess of 12 months are recognized when the Company is the lessee.
Recent Accounting Pronouncements
Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of ASUs to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs.
Adopted Accounting Pronouncements
The table below describes the impacts of the ASUs adopted by the Company, effective December 31, 2025:
| Standard | Summary of the Standard | Effective Date Method of Adoption | Impact of the Standard on the Company’s Financial Statements | ||||||||
| ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures | The guidance improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. | The Company adopted the standard prospectively as of December 31, 2025. | The amended income taxes disclosures is presented in Note 11. |
Future Adoption of Accounting Pronouncements
ASUs issued but not yet adopted as of December 31, 2025, that are currently being assessed and may or may not have a material impact on the Company’s consolidated financial statements or disclosures are included below. ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures.
F-17
| Standard | Summary of the Standard | Effective Date Method of Adoption | Impact of the Standard on the Company’s Financial Statements | ||||||||
| ASU 2024-03 Income Statement—Reporting Comprehensive Income— Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses | The guidance improves disclosures of specified information about certain costs and expenses for each interim and annual reporting period. The new disclosure requirements include: *•*Disclose the amounts of (a) purchases of inventory; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption. *•*Include certain amounts that are already required to be disclosed under current GAAP in the same disclosure as the other disaggregation requirements. *•*Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. *•*Disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. | December 31, 2027 and for interim periods thereafter | The Company is assessing the impact of adopting this standard as of December 31, 2027. The amended guidance is expected to have no impact on the Company’s consolidated financial statements and to expand the annual and interim disclosures of disaggregation of relevant expense captions in the Company’s consolidated statement of operations. |
3. Disposition
In 2025, the Company entered into an agreement to sell a subsidiary (the “pending subsidiary sale”) that holds certain runoff businesses, including the long-term care business, and is reported in the Corporate and Other segment. The sale was subject to regulatory approval by the New York State Department of Financial Services, which was obtained in January 2026. The Company reports a business as held for sale when management has received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the ensuing year and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less costs to sell, which is required to be remeasured each reporting period. If the carrying amount of the business exceeds its estimated fair value, which is based on the estimated sales price of the transaction, less costs to sell, a loss is recognized. Depreciation is not recorded on assets of a business classified as held for sale.
As of December 31, 2025, the pending subsidiary sale met the criteria for held for sale presentation as described above and, therefore, its assets and liabilities were recorded as held for sale in the consolidated balance sheet. The major classes of assets and liabilities held for sale as of December 31, 2025 included $489.4 million of reinsurance recoverables and $477.1 million of future policy benefits and expenses. As a result of the classification as held for sale, a loss of $10.7 million was recorded in underwriting, selling, general and administrative expenses in the consolidated statement of operations for the year ended December 31, 2025.
4. Allowance for Credit Losses
The total allowance for credit losses for the financial assets was $26.0 million and $20.7 million as of December 31, 2025 and 2024, respectively.
The following table presents the net increases (decreases) to the allowance for credit losses as classified in the consolidated statements of operations for the periods indicated:
| For the Years Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Commercial mortgage loans on real estate | $ | 0.8 | $ | 2.5 | |||||||
| Fixed maturity securities available for sale | 1.9 | — | |||||||||
| Net realized losses on investments and fair value changes to equity securities | 2.7 | 2.5 | |||||||||
| Underwriting, selling, general and administrative expenses | 4.6 | (5.6) | |||||||||
| Net increase (decrease) in allowance for credit losses | $ | 7.3 | $ | (3.1) |
F-18
Reinsurance Recoverables
As part of the Company’s overall risk and capacity management strategy, reinsurance is used to mitigate certain risks underwritten by various business segments. The Company is exposed to the credit risk of reinsurers, as the Company remains liable to insureds regardless of whether related reinsurance recoverables are collected. As of December 31, 2025 and 2024, reinsurance recoverables totaled $6.47 billion and $7.58 billion, respectively, the majority of which are protected from credit risk by various types of collateral or other risk mitigation mechanisms, such as trusts, letters of credit or by withholding the assets in a modified coinsurance or funds withheld arrangement.
The Company utilizes external credit ratings published by S&P Global Ratings, a division of S&P Global Inc., at the balance sheet date when determining the allowance. Where rates are not available, the Company assigns default credit ratings based on if the reinsurer is authorized or unauthorized. Of the total recoverables subject to the allowance, 97% were rated A- or better and 3% were not rated based on the Company’s analysis and assigned ratings for the year ended December 31, 2025; and 84% were rated A- or better, 5% were rated B- and 11% were not rated based on the Company’s analysis and assigned ratings for the year ended December 31, 2024.
The following table presents the changes in the allowance for credit losses by portfolio segment for reinsurance recoverables for the periods indicated:
| Global Lifestyle | Global Housing | Corporate and Other | Total | ||||||||||||||||||||
| Balance, December 31, 2023 | $ | 3.3 | $ | 1.1 | $ | 0.4 | $ | 4.8 | |||||||||||||||
| Current period change for credit losses | (0.1) | 0.2 | 0.1 | 0.2 | |||||||||||||||||||
| Balance, December 31, 2024 | 3.2 | 1.3 | 0.5 | 5.0 | |||||||||||||||||||
| Current period change for credit losses | (0.6) | 1.2 | (0.4) | 0.2 | |||||||||||||||||||
| Balance, December 31, 2025 | $ | 2.6 | $ | 2.5 | $ | 0.1 | $ | 5.2 |
For each of the years ended December 31, 2025 and 2024, the current period change for credit losses was $0.2 million. When determining the allowance as of December 31, 2025 and 2024, the Company did not increase default probabilities by reinsurer since there had been no credit rating downgrades or major negative credit indications of the Company’s reinsurers that has impacted rating. The allowance may be increased and income reduced in future periods if there are future ratings downgrades or other measurable information supporting an increase in reinsurer default probabilities, including collateral reductions.
Premium and Accounts Receivables
The Company is exposed to credit risk from premiums and other accounts receivables. For premiums receivable, the exposure to loss upon a default is often mitigated by the ability to terminate the policy on default and offset the corresponding unearned premium liability. The Company has other mitigating offsets from amounts payable on commissions and profit share arrangements when the counterparty to the receivable is a sponsor/agent of the Company’s insurance product.
The following table presents the changes in the allowance for credit losses by portfolio segment for premium and accounts receivables for the periods indicated:
| Global Lifestyle | Global Housing | Corporate and Other | Total | ||||||||||||||||||||
| Balance, December 31, 2023 | $ | 6.2 | $ | 2.4 | $ | 0.4 | $ | 9.0 | |||||||||||||||
| Current period change for credit losses | 2.3 | 0.6 | — | 2.9 | |||||||||||||||||||
| Recoveries | (0.3) | (1.5) | — | (1.8) | |||||||||||||||||||
| Write-offs | (1.6) | (0.7) | (0.3) | (2.6) | |||||||||||||||||||
| Foreign currency translation | (0.3) | — | — | (0.3) | |||||||||||||||||||
| Balance, December 31, 2024 | 6.3 | 0.8 | 0.1 | 7.2 | |||||||||||||||||||
| Current period change for credit losses | 1.9 | 1.3 | 1.2 | 4.4 | |||||||||||||||||||
| Recoveries | 0.1 | — | — | 0.1 | |||||||||||||||||||
| Write-offs | (0.1) | (0.7) | (0.7) | (1.5) | |||||||||||||||||||
| Foreign currency translation | 0.2 | — | — | 0.2 | |||||||||||||||||||
| Balance, December 31, 2025 | $ | 8.4 | $ | 1.4 | $ | 0.6 | $ | 10.4 |
F-19
For the year ended December 31, 2025, the current period change for credit losses was $4.4 million, primarily due to an increase in Global Lifestyle across various products. For the year ended December 31, 2024, the current period change for credit losses was $2.9 million. There is a risk that income may be reduced in future periods for additional credit losses.
Commercial Mortgage Loans
For the years ended December 31, 2025 and 2024, the current period change for credit losses was $0.8 million and $2.5 million, respectively. The increase in 2025 and 2024 was primarily driven by changes in certain key credit quality indicators. For the year ended December 31, 2025, the allowance for credit losses was reduced by $0.6 million for a write-off of an accrued income receivable deemed uncollectible. Refer to Notes 2 and 7 for additional information on commercial mortgage loans.
Available for Sale Securities
There was an allowance for credit losses of $1.9 million for the fixed maturity securities available for sale as of December 31, 2025. There was no allowance for credit losses as of December 31, 2024. Refer to Notes 2 and 7 for additional information on available for sale securities.
High Deductible Recoverables
For the years ended December 31, 2025 and 2024, the Company reduced its allowance for credit losses for the unsecured portion of the high deductible recoverables by $0.5 million and $6.9 million, respectively, due to the ongoing run-off of the sharing economy business. Refer to Note 2 for additional information on high deductible recoverables.
5. Segment Information
As of December 31, 2025, the Company had two reportable operating segments: Global Lifestyle and Global Housing. In addition, the Company reports the Corporate and Other segment, which includes corporate employee-related expenses, activities of the holding company and investments in the home warranty business.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer (“CEO”). Adjusted EBITDA, as defined below, is the primary measure used by the CODM to assess performance and allocate resources to the segments. The CODM budgets and forecasts for each segment based on Adjusted EBITDA, and then tracks and assesses performance throughout the year by comparing the actual Adjusted EBITDA to the budget and forecast for each segment. The individual operating segment’s performance is one of the considerations when determining the compensation of certain employees.
The Company defines Adjusted EBITDA, the segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, interest expense, benefit (provision) for income taxes, depreciation expense, amortization of purchased intangible assets, as well as other highly variable or unusual items (including restructuring costs, the loss on the pending subsidiary sale and non-core operations, each as described elsewhere in this Report).
The following tables provide information about the segments’ Adjusted EBITDA.
F-20
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Global Lifestyle: | |||||||||||||||||
| Net earned premiums, fees and other income: | |||||||||||||||||
| Connected Living | $ | 5,378.7 | $ | 4,807.9 | $ | 4,376.8 | |||||||||||
| Global Automotive | 4,203.8 | 4,159.4 | 4,184.6 | ||||||||||||||
| Net investment income | 357.5 | 356.6 | 347.5 | ||||||||||||||
| Total revenues | 9,940.0 | 9,323.9 | 8,908.9 | ||||||||||||||
| Policyholder benefits | 1,901.7 | 1,738.6 | 1,607.9 | ||||||||||||||
| Selling and underwriting expense (1) | 4,986.8 | 4,770.4 | 4,789.3 | ||||||||||||||
| Cost of sales (2) | 982.5 | 841.6 | 564.2 | ||||||||||||||
| General expenses (3) | 1,267.7 | 1,199.9 | 1,155.2 | ||||||||||||||
| Segment Adjusted EBITDA | $ | 801.3 | $ | 773.4 | $ | 792.3 | |||||||||||
| Global Housing: | |||||||||||||||||
| Net earned premiums, fees and other income: | |||||||||||||||||
| Homeowners | $ | 2,192.4 | $ | 1,958.9 | $ | 1,663.4 | |||||||||||
| Renters and Other | 576.4 | 498.1 | 479.5 | ||||||||||||||
| Net investment income | 141.8 | 127.3 | 109.7 | ||||||||||||||
| Total revenues | 2,910.6 | 2,584.3 | 2,252.6 | ||||||||||||||
| Policyholder benefits | 1,018.4 | 1,010.2 | 862.0 | ||||||||||||||
| Selling and underwriting expense (1) | 201.6 | 158.1 | 137.1 | ||||||||||||||
| General expenses (4) | 831.9 | 744.8 | 679.3 | ||||||||||||||
| Segment Adjusted EBITDA | $ | 858.7 | $ | 671.2 | $ | 574.2 | |||||||||||
| Corporate: | |||||||||||||||||
| Fees and other income | $ | 1.7 | $ | 0.4 | $ | 0.2 | |||||||||||
| Net investment income | 23.9 | 27.2 | 21.4 | ||||||||||||||
| Total revenues | 25.6 | 27.6 | 21.6 | ||||||||||||||
| Policyholder benefits | — | — | 0.1 | ||||||||||||||
| General expenses (3) | 149.4 | 149.8 | 130.5 | ||||||||||||||
| Segment Adjusted EBITDA | $ | (123.8) | $ | (122.2) | $ | (109.0) |
(1)Consists primarily of commissions, premium taxes and amortization of deferred acquisition costs.
(2)Consists primarily of costs to acquire, and repair or refurbish mobile and other electronic devices the Company sells to third-parties.
(3)Consists primarily of licenses, fees, and general operating expenses.
(4)Consists primarily of lender-placed tracking, licenses, fees, and general operating expenses.
F-21
The following table presents segment Adjusted EBITDA with a reconciliation to net income:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Adjusted EBITDA by segment: | |||||||||||||||||
| Global Lifestyle | $ | 801.3 | $ | 773.4 | $ | 792.3 | |||||||||||
| Global Housing | 858.7 | 671.2 | 574.2 | ||||||||||||||
| Corporate and Other | (123.8) | (122.2) | (109.0) | ||||||||||||||
| Reconciling items to consolidated net income: | |||||||||||||||||
| Interest expense | (109.7) | (107.0) | (108.0) | ||||||||||||||
| Depreciation expense | (156.4) | (139.4) | (109.3) | ||||||||||||||
| Amortization of purchased intangible assets | (67.4) | (69.1) | (77.9) | ||||||||||||||
| Net realized losses on investments and fair value changes to equity securities | (71.8) | (75.8) | (68.7) | ||||||||||||||
| Non-core operations (1) (2) | (0.8) | (14.2) | (43.5) | ||||||||||||||
| Restructuring costs (3) | (27.3) | (5.4) | (34.3) | ||||||||||||||
| Loss on subsidiary held for sale (Note 3) | (10.7) | — | — | ||||||||||||||
| Other adjustments | (4.7) | 15.8 | (9.0) | ||||||||||||||
| Total reconciling items | (448.8) | (395.1) | (450.7) | ||||||||||||||
| Income before income tax expense | 1,087.4 | 927.3 | 806.8 | ||||||||||||||
| Income tax expense | 214.7 | 167.1 | 164.3 | ||||||||||||||
| Net income | $ | 872.7 | $ | 760.2 | $ | 642.5 | |||||||||||
(1)Consists of certain businesses which the Company has fully exited or expects to fully exit, including the long-tail commercial liability businesses (sharing economy and small commercial businesses), Assurant Health runoff operations, certain legacy long-duration insurance policies and the Company’s operations in mainland China (not Hong Kong) (collectively referred to as “non-core operations”). The non-core operations do not qualify as held for sale or discontinued operations under GAAP accounting guidance and are presented as a reconciling item to consolidated net income. During 2024, the mainland China operations were sold and were no longer included in non-core operations commencing with first quarter 2025.
(2)In first quarter 2023, the Company recorded income of $7.5 million related to a payment it received from Time Insurance Company (“TIC”) pursuant to a participation agreement that the Company had with TIC in connection with its sale by the Company in 2018. The payment related to the Company’s prior participation in the risk adjustment program introduced by the Patient Protection and Affordable Care Act of 2010.
(3)Relates to strategic exit activities (outside of normal periodic restructuring and cost management activities). Refer to Note 25 for more information.
The Company principally operates in the U.S., as well as Europe, Latin America, Canada and Asia Pacific. The following table summarizes selected financial information by geographic location for the years ended or as of December 31, 2025, 2024 and 2023:
| Location | Revenues | Long-lived Assets | |||||||||
| 2025 | |||||||||||
| United States | $ | 10,549.0 | $ | 759.3 | |||||||
| Foreign countries | 2,265.3 | 82.4 | |||||||||
| Total | $ | 12,814.3 | $ | 841.7 | |||||||
| 2024 | |||||||||||
| United States | $ | 9,815.5 | $ | 681.1 | |||||||
| Foreign countries | 2,062.0 | 87.2 | |||||||||
| Total | $ | 11,877.5 | $ | 768.3 | |||||||
| 2023 | |||||||||||
| United States | $ | 9,295.7 | $ | 654.6 | |||||||
| Foreign countries | 1,835.9 | 31.2 | |||||||||
| Total | $ | 11,131.6 | $ | 685.8 |
Revenue is based in the country where the product was sold and the physical location of long-lived assets, which are primarily property and equipment.
F-22
The following table presents total assets by segment:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Global Lifestyle (1) | $ | 28,846.7 | $ | 27,468.0 | |||||||
| Global Housing (1) | 5,159.2 | 5,773.4 | |||||||||
| Corporate and Other (2) | 2,283.7 | 1,779.2 | |||||||||
| Segment assets | $ | 36,289.6 | $ | 35,020.6 |
(1)Segment assets for Global Lifestyle and Global Housing do not include net unrealized gains (losses) on securities attributable to those segments, which are all included within Corporate and Other.
(2)Corporate and Other includes the assets held for sale of $512.4 million as of December 31, 2025 related to the pending subsidiary sale and $46.0 million of assets related to the Miami, Florida property as of December 31, 2025 and 2024, which met held-for-sale criteria and was included in other assets. Refer to Notes 3 and 13, respectively, for more information.
6. Contract Revenues
The Company partners with clients to provide consumers with a diverse range of protection products and services. The Company’s revenues from protection products are accounted for as insurance contracts and are recognized over the term of the insurance protection provided. Revenues from service contracts and sales of products are recognized as the contractual performance obligations are satisfied or the products are delivered. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for performing the services or transferring products. If payments are received before the related revenue is recognized, the amount is recorded as unearned revenue or advance payment liabilities, until the performance obligations are satisfied or the products are transferred.
The disaggregated revenues from service contracts included in fees and other income on the consolidated statements of operations are $1.64 billion, $1.41 billion and $1.16 billion for Global Lifestyle and $139.6 million, $127.8 million and $84.3 million for Global Housing for the years ended December 31, 2025, 2024 and 2023, respectively.
Global Lifestyle
In the Global Lifestyle segment, revenues from service contracts and sales of products are primarily from the Company’s Connected Living business. Through partnerships with the mobile eco-system, the Company provides administrative services related to its mobile device protection products, including program design and marketing strategy, risk management, data analytics, customer support and claims handling, supply chain and service delivery, repair and logistics, and device disposition. Administrative fees are generally billed monthly based on the volume of services provided during the billing period (for example, based on the number of mobile subscribers) with payment due within a short-term period. Each service or bundle of services, depending on the contract, is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer.
The Company also repairs, refurbishes and then sells mobile and other electronic devices, on behalf of its client, for a bundled per unit fee. The entire processing of the device is considered one performance obligation with a standalone selling price and thus, the per unit fee is recognized when the products are sold. Payments are generally due prior to shipment or within a short-term period.
Global Housing
In the Global Housing segment, revenues from service contracts and sales of products are primarily from the Homeowners business. As part of the Homeowners business, the Company provides loan and claim payment tracking services for lenders. The Company generally invoices its customers weekly or monthly based on the volume of services provided during the billing period with payment due within a short-term period. Each service is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer.
Contract Balances
The receivables and unearned revenue under these contracts were $187.6 million and $149.1 million, respectively, as of December 31, 2025, and $171.3 million and $153.8 million, respectively, as of December 31, 2024. These balances are included in premiums and accounts receivable and accounts payable and other liabilities, respectively, in the consolidated balance sheets. Revenue from service contracts and sales of products recognized during the years ended December 31, 2025 and 2024 that was included in unearned revenue as of December 31, 2024 and 2023 were $86.9 million and $45.1 million, respectively.
In certain circumstances, the Company defers upfront commissions and other costs in connection with client contracts in excess of one year where the Company can demonstrate future economic benefit. For these contracts, expense is recognized as
F-23
revenues are earned. The Company periodically assesses recoverability based on the performance of the related contracts. As of December 31, 2025 and 2024, the Company had approximately $67.6 million and $83.4 million, respectively, of such intangible assets that will be expensed over the term of the client contracts.
7. Investments
The following tables show the cost or amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value of the Company’s fixed maturity securities as of the dates indicated:
| December 31, 2025 | |||||||||||||||||||||||||||||
| Cost or Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 62.7 | $ | — | $ | 1.0 | $ | (0.8) | $ | 62.9 | |||||||||||||||||||
| States, municipalities and political subdivisions | 100.0 | — | 1.2 | (5.1) | 96.1 | ||||||||||||||||||||||||
| Foreign governments | 596.1 | — | 9.1 | (11.3) | 593.9 | ||||||||||||||||||||||||
| Asset-backed | 850.2 | — | 4.6 | (9.1) | 845.7 | ||||||||||||||||||||||||
| Commercial mortgage-backed | 431.4 | — | 5.3 | (19.3) | 417.4 | ||||||||||||||||||||||||
| Residential mortgage-backed | 978.6 | — | 11.5 | (35.4) | 954.7 | ||||||||||||||||||||||||
| U.S. corporate | 3,895.5 | (1.9) | 97.3 | (113.3) | 3,877.6 | ||||||||||||||||||||||||
| Foreign corporate | 1,720.8 | — | 44.9 | (36.3) | 1,729.4 | ||||||||||||||||||||||||
| Total fixed maturity securities | $ | 8,635.3 | $ | (1.9) | $ | 174.9 | $ | (230.6) | $ | 8,577.7 |
| December 31, 2024 | |||||||||||||||||||||||||||||
| Cost or Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 54.5 | $ | — | $ | 0.1 | $ | (3.4) | $ | 51.2 | |||||||||||||||||||
| States, municipalities and political subdivisions | 128.7 | — | 0.6 | (10.2) | 119.1 | ||||||||||||||||||||||||
| Foreign governments | 484.6 | — | 2.6 | (25.1) | 462.1 | ||||||||||||||||||||||||
| Asset-backed | 940.3 | — | 6.5 | (9.5) | 937.3 | ||||||||||||||||||||||||
| Commercial mortgage-backed | 371.8 | — | 1.0 | (36.4) | 336.4 | ||||||||||||||||||||||||
| Residential mortgage-backed | 690.0 | — | 1.6 | (50.5) | 641.1 | ||||||||||||||||||||||||
| U.S. corporate | 3,364.3 | — | 26.9 | (203.8) | 3,187.4 | ||||||||||||||||||||||||
| Foreign corporate | 1,490.6 | — | 19.0 | (69.1) | 1,440.5 | ||||||||||||||||||||||||
| Total fixed maturity securities | $ | 7,524.8 | $ | — | $ | 58.3 | $ | (408.0) | $ | 7,175.1 |
The cost or amortized cost and fair value of fixed maturity securities as of December 31, 2025 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.
F-24
| December 31, 2025 | |||||||||||
| Cost or Amortized Cost | Fair Value | ||||||||||
| Due in one year or less | $ | 120.4 | $ | 120.6 | |||||||
| Due after one year through five years | 1,375.8 | 1,392.9 | |||||||||
| Due after five years through ten years | 3,551.9 | 3,622.1 | |||||||||
| Due after ten years | 1,327.0 | 1,224.3 | |||||||||
| Total | 6,375.1 | 6,359.9 | |||||||||
| Asset-backed | 850.2 | 845.7 | |||||||||
| Commercial mortgage-backed | 431.4 | 417.4 | |||||||||
| Residential mortgage-backed | 978.6 | 954.7 | |||||||||
| Total | $ | 8,635.3 | $ | 8,577.7 |
The following table shows the major categories of net investment income for the periods indicated:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Fixed maturity securities | $ | 434.8 | $ | 385.9 | $ | 335.3 | |||||||||||
| Equity securities | 11.9 | 13.2 | 15.2 | ||||||||||||||
| Commercial mortgage loans on real estate | 18.6 | 19.2 | 17.5 | ||||||||||||||
| Short-term investments | 18.1 | 18.4 | 12.9 | ||||||||||||||
| Other investments | 2.9 | 21.3 | 39.1 | ||||||||||||||
| Cash and cash equivalents | 58.4 | 77.0 | 85.7 | ||||||||||||||
| Total investment income | 544.7 | 535.0 | 505.7 | ||||||||||||||
| Investment expenses | (17.4) | (16.1) | (16.6) | ||||||||||||||
| Net investment income | $ | 527.3 | $ | 518.9 | $ | 489.1 |
Commercial loan balances totaling approximately $20.4 million were non-performing as of December 31, 2025. No material investments of the Company were non-income producing for the years ended December 31, 2024 and 2023.
The following table summarizes the proceeds from sales of available-for-sale fixed maturity securities and the gross realized gains and gross realized losses that have been recognized in the statement of operations as a result of those sales for the periods indicated:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Fixed maturity securities: | |||||||||||||||||
| Proceeds from sales | $ | 1,187.7 | $ | 1,330.9 | $ | 1,464.6 | |||||||||||
| Gross realized gains | $ | 4.2 | $ | 1.3 | $ | 5.6 | |||||||||||
| Gross realized losses | (75.1) | (72.4) | (49.3) | ||||||||||||||
| Net realized (losses) gains on investments from sales of fixed maturity securities | $ | (70.9) | $ | (71.1) | $ | (43.7) |
For securities sold at a loss during the year ended December 31, 2025, the average period of time these securities were trading continuously at a price below book value was approximately 31 months.
The following table sets forth the net realized gains (losses) on investments and fair value changes to equity securities, including impairments, recognized in the statement of operations for the periods indicated:
F-25
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net realized (losses) gains on investments and fair value changes to equity securities related to sales and other: | |||||||||||||||||
| Fixed maturity securities | $ | (70.7) | $ | (71.0) | $ | (43.3) | |||||||||||
| Equity securities (1) | 5.9 | 19.5 | (7.2) | ||||||||||||||
| Commercial mortgage loans on real estate (2) | (0.8) | (2.5) | (2.2) | ||||||||||||||
| Other investments | 0.5 | 3.3 | 1.0 | ||||||||||||||
| Total net realized (losses) gains on investments and fair value changes to equity securities related to sales and other | (65.1) | (50.7) | (51.7) | ||||||||||||||
| Net realized losses related to impairments: | |||||||||||||||||
| Fixed maturity securities (3) | (2.0) | (1.3) | (4.1) | ||||||||||||||
| Other investments (1) | (4.7) | (23.8) | (12.9) | ||||||||||||||
| Total net realized losses related to impairments | (6.7) | (25.1) | (17.0) | ||||||||||||||
| Total net realized (losses) gains on investments and fair value changes to equity securities | $ | (71.8) | $ | (75.8) | $ | (68.7) |
(1)Upward adjustments of $4.8 million, $6.8 million and $0.6 million and impairments of $4.7 million, $23.8 million, and $12.9 million were realized on equity investments accounted for under the measurement alternative for the years ended December 31, 2025, 2024 and 2023, respectively.
(2)Realized losses related to CECL reserves. Refer to Note 4 for additional information.
(3)Includes credit losses of $1.9 million on fixed maturity securities available for sale for the year ended December 31, 2025. Refer to Note 4 for additional information.
The following table sets forth the portion of fair value changes to equity securities held for the periods indicated:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net gains (losses) recognized on equity securities | $ | 5.9 | $ | 19.5 | $ | (7.2) | |||||||||||
| Less: Net realized gains (losses) related to sales of equity securities | (13.9) | 5.7 | (6.6) | ||||||||||||||
| Total fair value changes to equity securities held | $ | 19.8 | $ | 13.8 | $ | (0.6) |
Equity investments accounted for under the measurement alternative are included within other investments on the consolidated balance sheets. The following table summarizes information related to these investments:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Initial cost | $ | 82.5 | $ | 74.8 | |||||||
| Cumulative upward adjustments | 55.6 | 57.9 | |||||||||
| Cumulative downward adjustments (including impairments) | (22.8) | (24.4) | |||||||||
| Carrying value | $ | 115.3 | $ | 108.3 |
The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities, as of December 31, 2025 and 2024 were as follows:
F-26
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 12.5 | $ | — | $ | 9.8 | $ | (0.8) | $ | 22.3 | $ | (0.8) | |||||||||||||||||||||||
| States, municipalities and political subdivisions | 4.1 | (0.2) | 53.0 | (4.9) | 57.1 | (5.1) | |||||||||||||||||||||||||||||
| Foreign governments | 93.8 | (1.6) | 163.8 | (9.7) | 257.6 | (11.3) | |||||||||||||||||||||||||||||
| Asset-backed | 364.0 | (2.9) | 72.8 | (6.2) | 436.8 | (9.1) | |||||||||||||||||||||||||||||
| Commercial mortgage-backed | 35.7 | (0.8) | 131.5 | (18.5) | 167.2 | (19.3) | |||||||||||||||||||||||||||||
| Residential mortgage-backed | 72.9 | (1.1) | 182.1 | (34.3) | 255.0 | (35.4) | |||||||||||||||||||||||||||||
| U.S. corporate | 374.6 | (8.7) | 562.8 | (104.6) | 937.4 | (113.3) | |||||||||||||||||||||||||||||
| Foreign corporate | 176.3 | (2.8) | 220.5 | (33.5) | 396.8 | (36.3) | |||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 1,133.9 | $ | (18.1) | $ | 1,396.3 | $ | (212.5) | $ | 2,530.2 | $ | (230.6) |
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 25.8 | $ | (0.6) | $ | 21.4 | $ | (2.8) | $ | 47.2 | $ | (3.4) | |||||||||||||||||||||||
| States, municipalities and political subdivisions | 20.4 | (1.5) | 66.1 | (8.7) | 86.5 | (10.2) | |||||||||||||||||||||||||||||
| Foreign governments | 164.8 | (10.9) | 171.3 | (14.2) | 336.1 | (25.1) | |||||||||||||||||||||||||||||
| Asset-backed | 59.0 | (3.5) | 87.6 | (6.0) | 146.6 | (9.5) | |||||||||||||||||||||||||||||
| Commercial mortgage-backed | 65.7 | (1.3) | 195.8 | (35.1) | 261.5 | (36.4) | |||||||||||||||||||||||||||||
| Residential mortgage-backed | 223.4 | (4.8) | 209.7 | (45.7) | 433.1 | (50.5) | |||||||||||||||||||||||||||||
| U.S. corporate | 1,083.8 | (29.9) | 954.3 | (173.9) | 2,038.1 | (203.8) | |||||||||||||||||||||||||||||
| Foreign corporate | 368.1 | (9.9) | 431.4 | (59.2) | 799.5 | (69.1) | |||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 2,011.0 | $ | (62.4) | $ | 2,137.6 | $ | (345.6) | $ | 4,148.6 | $ | (408.0) |
Total gross unrealized losses represented approximately 9% and 10% of the aggregate fair value of the related securities as of December 31, 2025 and 2024, respectively. Approximately 8% and 15% of these gross unrealized losses had been in a continuous loss position for less than twelve months as of December 31, 2025 and 2024, respectively. The total gross unrealized losses are comprised of 1,827 and 2,712 individual securities as of December 31, 2025 and 2024, respectively. In accordance with its policy, the Company concluded that for these securities, the gross unrealized losses as of December 31, 2025 and December 31, 2024 were related to non-credit factors and therefore, did not recognize credit-related losses during the year ended December 31, 2025. Additionally, the Company currently does not intend to and is not required to sell these investments prior to an anticipated recovery in value.
F-27
The cost or amortized cost and fair value of available-for-sale fixed maturity securities in an unrealized loss position as of December 31, 2025, by contractual maturity, is shown below:
| December 31, 2025 | |||||||||||
| Cost or Amortized Cost, Net of Allowance | Fair Value | ||||||||||
| Due in one year or less | $ | 45.3 | $ | 44.9 | |||||||
| Due after one year through five years | 306.5 | 292.6 | |||||||||
| Due after five years through ten years | 691.6 | 663.3 | |||||||||
| Due after ten years | 796.5 | 670.4 | |||||||||
| Total | 1,839.9 | 1,671.2 | |||||||||
| Asset-backed | 445.9 | 436.8 | |||||||||
| Commercial mortgage-backed | 186.4 | 167.1 | |||||||||
| Residential mortgage-backed | 290.5 | 255.1 | |||||||||
| Total | $ | 2,762.7 | $ | 2,530.2 |
The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. As of December 31, 2025, approximately 35% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Texas and Maryland. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans range in size from less than $0.1 million to $5.0 million as of December 31, 2025 and from less than $0.1 million to $5.0 million as of December 31, 2024.
Credit quality indicators for commercial mortgage loans are loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments and is commonly expressed as a ratio. The loan-to-value and debt-service coverage ratios are generally updated annually in the fourth quarter.
The following table presents the amortized cost basis of commercial mortgage loans, excluding allowance for credit losses, by origination year for certain key credit quality indicators at December 31, 2025 and 2024, respectively.
| December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | % of Total | ||||||||||||||||||||||||||||||||||||||||
| Loan to value ratios (1): | |||||||||||||||||||||||||||||||||||||||||||||||
| 70% and less | $ | 50.4 | $ | 48.5 | $ | 27.4 | $ | 25.7 | $ | 32.2 | $ | 44.4 | $ | 228.6 | 69.0 | % | |||||||||||||||||||||||||||||||
| 71% to 80% | — | 5.0 | 11.0 | 7.5 | 16.0 | 5.7 | 45.2 | 13.6 | % | ||||||||||||||||||||||||||||||||||||||
| 81% to 95% | 2.3 | 1.0 | 2.4 | 10.5 | 12.0 | — | 28.2 | 8.5 | % | ||||||||||||||||||||||||||||||||||||||
| Greater than 95% | — | — | 3.8 | 14.9 | 10.7 | — | 29.4 | 8.9 | % | ||||||||||||||||||||||||||||||||||||||
| Total | $ | 52.7 | $ | 54.5 | $ | 44.6 | $ | 58.6 | $ | 70.9 | $ | 50.1 | $ | 331.4 | 100.0 | % | |||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | % of Total | ||||||||||||||||||||||||||||||||||||||||
| Debt service coverage ratios (2): | |||||||||||||||||||||||||||||||||||||||||||||||
| Greater than 2.0 | $ | 6.8 | $ | 4.5 | $ | 0.5 | $ | 12.9 | $ | 8.6 | $ | 35.2 | $ | 68.5 | 20.7 | % | |||||||||||||||||||||||||||||||
| 1.5 to 2.0 | 13.2 | 19.5 | 13.7 | 9.2 | 19.3 | 9.1 | 84.0 | 25.3 | % | ||||||||||||||||||||||||||||||||||||||
| 1.0 to 1.5 | 32.7 | 27.8 | 15.5 | 11.1 | 23.3 | 2.6 | 113.0 | 34.1 | % | ||||||||||||||||||||||||||||||||||||||
| Less than 1.0 | — | 2.7 | 14.9 | 25.4 | 19.7 | 3.2 | 65.9 | 19.9 | % | ||||||||||||||||||||||||||||||||||||||
| Total | $ | 52.7 | $ | 54.5 | $ | 44.6 | $ | 58.6 | $ | 70.9 | $ | 50.1 | $ | 331.4 | 100.0 | % |
F-28
(1)LTV ratio derived from current loan balance divided by the fair value of the property.
(2)DSC ratio calculated using most recent reported operating income results from property operators divided by annual debt service.
| December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | % of Total | ||||||||||||||||||||||||||||||||||||||||
| Loan to value ratios (1): | |||||||||||||||||||||||||||||||||||||||||||||||
| 70% and less | $ | 51.9 | $ | 43.2 | $ | 29.6 | $ | 16.0 | $ | — | $ | 57.9 | $ | 198.6 | 56.9 | % | |||||||||||||||||||||||||||||||
| 71% to 80% | 3.8 | 4.9 | 22.8 | 65.5 | 2.8 | — | 99.8 | 28.6 | % | ||||||||||||||||||||||||||||||||||||||
| 81% to 95% | — | — | 12.6 | 8.6 | — | 9.5 | 30.7 | 8.8 | % | ||||||||||||||||||||||||||||||||||||||
| Greater than 95% | — | 3.8 | 9.9 | 6.2 | — | — | 19.9 | 5.7 | % | ||||||||||||||||||||||||||||||||||||||
| Total | $ | 55.7 | $ | 51.9 | $ | 74.9 | $ | 96.3 | $ | 2.8 | $ | 67.4 | $ | 349.0 | 100.0 | % | |||||||||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | % of Total | ||||||||||||||||||||||||||||||||||||||||
| Debt service coverage ratios (2): | |||||||||||||||||||||||||||||||||||||||||||||||
| Greater than 2.0 | $ | 6.4 | $ | 0.6 | $ | 18.0 | $ | 10.8 | $ | — | $ | 43.4 | $ | 79.2 | 22.7 | % | |||||||||||||||||||||||||||||||
| 1.5 to 2.0 | 20.9 | 12.2 | 10.9 | 25.0 | — | 14.0 | 83.0 | 23.8 | % | ||||||||||||||||||||||||||||||||||||||
| 1.0 to 1.5 | 27.4 | 18.8 | 20.4 | 22.5 | 2.8 | 4.8 | 96.7 | 27.7 | % | ||||||||||||||||||||||||||||||||||||||
| Less than 1.0 | 1.0 | 20.3 | 25.6 | 38.0 | — | 5.2 | 90.1 | 25.8 | % | ||||||||||||||||||||||||||||||||||||||
| Total | $ | 55.7 | $ | 51.9 | $ | 74.9 | $ | 96.3 | $ | 2.8 | $ | 67.4 | $ | 349.0 | 100.0 | % |
(1)LTV ratio derived from current loan balance divided by the fair value of the property.
(2)DSC ratio calculated using most recent reported operating income results from property operators divided by annual debt service.
As of December 31, 2025, the Company had mortgage loan commitments outstanding of approximately $7.8 million.
The Company had short-term investments and fixed maturity securities of $711.4 million and $636.1 million as of December 31, 2025 and 2024, respectively, on deposit with various governmental authorities as required by law.
8. Variable Interest Entities
In the normal course of business, the Company is involved with various types of investment entities that may be considered VIEs. The Company evaluates its involvement with each entity to determine whether consolidation is required. The Company’s maximum risk of loss is limited to the carrying value and unfunded commitments of its investments in the VIEs. There were no consolidated VIEs as of December 31, 2025 and 2024.
Non-Consolidated VIEs
Real Estate Joint Venture and Other Partnerships
The Company invests in real estate joint ventures and limited partnerships, as well as closed ended real estate funds. These investments are generally accounted for under the equity method as the primary beneficiary criteria is not met; however, the Company is able to exert significant influence over the investees operating and financial policies. These investments are included in the consolidated balance sheets in other investments. As of December 31, 2025 and 2024, the Company’s maximum exposure to loss is its recorded carrying value of $327.2 million and $281.2 million, respectively. The Company’s unfunded commitments were $252.4 million as of December 31, 2025.
See Note 2 for additional information on significant accounting policies related to VIEs.
F-29
9. Fair Value Disclosures
Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures
The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company has categorized its recurring fair value basis financial assets and liabilities into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique.
The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and takes into account factors specific to the asset or liability.
The levels of the fair value hierarchy are described below:
-
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access.
-
Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset or liability. The observable inputs are used in valuation models to calculate the fair value for the asset or liability.
-
Level 3 inputs are unobservable but are significant to the fair value measurement for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.
The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of December 31, 2025 and 2024. The amounts presented below for short-term investments, other investments, cash equivalents, other assets, assets held in and liabilities related to separate accounts and other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the AIP, the ASIC plan, and the ADC, the Retiree Medical Pension 401(h) plan, and other derivatives. Other liabilities are comprised of investments in the AIP and contingent considerations. The fair value amount and the majority of the associated levels presented for other investments and assets and liabilities held in separate accounts are received directly from third parties.
F-30
| December 31, 2025 | ||||||||||||||||||||||||||
| Financial Assets | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
| Fixed maturity securities: | ||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 62.9 | $ | — | $ | 62.9 | $ | — | ||||||||||||||||||
| States, municipalities and political subdivisions | 96.1 | — | 96.1 | — | ||||||||||||||||||||||
| Foreign governments | 593.9 | — | 593.9 | — | ||||||||||||||||||||||
| Asset-backed | 845.7 | — | 715.9 | 129.8 | ||||||||||||||||||||||
| Commercial mortgage-backed | 417.4 | — | 417.4 | — | ||||||||||||||||||||||
| Residential mortgage-backed | 954.7 | — | 954.7 | — | ||||||||||||||||||||||
| U.S. corporate | 3,877.6 | — | 3,812.0 | 65.6 | ||||||||||||||||||||||
| Foreign corporate | 1,729.4 | — | 1,721.5 | 7.9 | ||||||||||||||||||||||
| Equity securities: | ||||||||||||||||||||||||||
| Mutual funds | 37.3 | 16.1 | — | 21.2 | ||||||||||||||||||||||
| Common stocks | 2.0 | 2.0 | — | — | ||||||||||||||||||||||
| Non-redeemable preferred stocks | 167.8 | — | 167.5 | 0.3 | ||||||||||||||||||||||
| Short-term investments | 336.3 | 329.0 | (2) | 7.3 | (3) | — | ||||||||||||||||||||
| Other investments | 72.2 | 72.2 | (1) | — | — | |||||||||||||||||||||
| Cash equivalents | 1,349.3 | 1,335.5 | (2) | 13.8 | (3) | — | ||||||||||||||||||||
| Other assets | 6.4 | — | — | 6.4 | (4) | |||||||||||||||||||||
| Total financial assets | $ | 10,549.0 | $ | 1,754.8 | $ | 8,563.0 | $ | 231.2 | ||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
| Other liabilities | $ | 85.0 | $ | 62.7 | (1) | $ | — | $ | 22.3 | (5) | ||||||||||||||||
| Total financial liabilities | $ | 85.0 | $ | 62.7 | $ | — | $ | 22.3 |
F-31
| December 31, 2024 | ||||||||||||||||||||||||||
| Financial Assets | Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
| Fixed maturity securities: | ||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 51.2 | $ | — | $ | 51.2 | $ | — | ||||||||||||||||||
| States, municipalities and political subdivisions | 119.1 | — | 119.1 | — | ||||||||||||||||||||||
| Foreign governments | 462.1 | — | 462.1 | — | ||||||||||||||||||||||
| Asset-backed | 937.3 | — | 823.7 | 113.6 | ||||||||||||||||||||||
| Commercial mortgage-backed | 336.4 | — | 336.4 | — | ||||||||||||||||||||||
| Residential mortgage-backed | 641.1 | — | 641.1 | — | ||||||||||||||||||||||
| U.S. corporate | 3,187.4 | — | 3,139.9 | 47.5 | ||||||||||||||||||||||
| Foreign corporate | 1,440.5 | — | 1,432.5 | 8.0 | ||||||||||||||||||||||
| Equity securities: | ||||||||||||||||||||||||||
| Mutual funds | 28.8 | 13.6 | — | 15.2 | ||||||||||||||||||||||
| Common stocks | 3.5 | 3.5 | — | — | ||||||||||||||||||||||
| Non-redeemable preferred stocks | 176.2 | — | 176.2 | — | ||||||||||||||||||||||
| Short-term investments | 237.1 | 230.1 | (2) | 7.0 | (3) | — | ||||||||||||||||||||
| Other investments | 66.1 | 66.0 | (1) | — | 0.1 | |||||||||||||||||||||
| Cash equivalents | 1,325.6 | 1,312.0 | (2) | 13.6 | (3) | — | ||||||||||||||||||||
| Other assets | 6.3 | — | — | 6.3 | (4) | |||||||||||||||||||||
| Assets held in separate accounts | 11.3 | 8.7 | (1) | 2.6 | (3) | — | ||||||||||||||||||||
| Total financial assets | $ | 9,030.0 | $ | 1,633.9 | $ | 7,205.4 | $ | 190.7 | ||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
| Other liabilities | $ | 66.0 | $ | 66.0 | (1) | $ | — | $ | — | |||||||||||||||||
| Liabilities related to separate accounts | 11.3 | 8.7 | (1) | 2.6 | (3) | — | ||||||||||||||||||||
| Total financial liabilities | $ | 77.3 | $ | 74.7 | $ | 2.6 | $ | — |
(1)Primarily includes mutual funds and related obligations.
(2)Primarily includes money market funds.
(3)Primarily includes fixed maturity securities and related obligations.
(4)Primarily includes derivatives.
(5)Includes contingent consideration liabilities.
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The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets and liabilities carried at fair value for the years ended December 31, 2025 and 2024:
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | Total gains (losses) (realized/unrealized) included in earnings (1) | Net unrealized gains (losses) included in other comprehensive income (2) | Purchases | Sales | Transfers in (3) | Transfers out (3) | Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed | $ | 113.6 | $ | 1.1 | $ | 2.2 | $ | 28.3 | $ | (21.6) | $ | 11.2 | $ | (5.0) | $ | 129.8 | ||||||||||||||||||||||||||||||||||
| U.S. corporate | 47.5 | 0.4 | (2.0) | 34.5 | (11.0) | 3.4 | (7.2) | 65.6 | ||||||||||||||||||||||||||||||||||||||||||
| Foreign corporate | 8.0 | — | 0.1 | 2.0 | (0.1) | — | (2.1) | 7.9 | ||||||||||||||||||||||||||||||||||||||||||
| Equity Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Mutual funds | 15.2 | 1.0 | — | 5.0 | — | — | — | 21.2 | ||||||||||||||||||||||||||||||||||||||||||
| Non-redeemable preferred stocks | — | — | — | 0.3 | — | — | — | 0.3 | ||||||||||||||||||||||||||||||||||||||||||
| Other investments | 0.1 | (0.1) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other assets | 6.3 | — | 0.1 | — | — | — | — | 6.4 | ||||||||||||||||||||||||||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | — | (0.5) | — | — | (21.8) | — | — | (22.3) | ||||||||||||||||||||||||||||||||||||||||||
| Total level 3 assets and liabilities | $ | 190.7 | $ | 1.9 | $ | 0.4 | $ | 70.1 | $ | (54.5) | $ | 14.6 | $ | (14.3) | $ | 208.9 |
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance, beginning of period | Total gains (losses) (realized/unrealized) included in earnings (1) | Net unrealized gains (losses) included in other comprehensive income (2) | Purchases | Sales | Transfers in (3) | Transfers out (3) | Balance, end of period | |||||||||||||||||||||||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed Maturity Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Asset-backed | $ | 82.8 | $ | 0.5 | $ | 2.9 | $ | 25.7 | $ | (3.4) | $ | 8.0 | $ | (2.9) | $ | 113.6 | ||||||||||||||||||||||||||||||||||
| U.S. corporate | 35.6 | (0.1) | 0.1 | 34.6 | (10.2) | 2.9 | (15.4) | 47.5 | ||||||||||||||||||||||||||||||||||||||||||
| Foreign corporate | 7.1 | — | 0.1 | 3.0 | (2.2) | — | — | 8.0 | ||||||||||||||||||||||||||||||||||||||||||
| Equity Securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Mutual funds | — | 0.2 | — | 15.0 | — | — | — | 15.2 | ||||||||||||||||||||||||||||||||||||||||||
| Non-redeemable preferred stocks | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Other investments | 0.1 | — | — | — | — | — | — | 0.1 | ||||||||||||||||||||||||||||||||||||||||||
| Other assets | 15.8 | — | (9.5) | — | — | — | — | 6.3 | ||||||||||||||||||||||||||||||||||||||||||
| Total level 3 assets and liabilities | $ | 141.4 | $ | 0.6 | $ | (6.4) | $ | 78.3 | $ | (15.8) | $ | 10.9 | $ | (18.3) | $ | 190.7 |
(1)Included as part of net realized gains on investments, excluding other-than-temporary impairment losses, in the consolidated statements of operations.
(2)Included as part of change in unrealized gains on securities in the consolidated statement of comprehensive income.
(3)Transfers are primarily attributable to changes in the availability of observable market information and the re-evaluation of the observability of valuation inputs.
Three different valuation techniques can be used in determining fair value for financial assets and liabilities: the market, income or cost approaches. The three valuation techniques described in the fair value measurements and disclosures guidance are consistent with generally accepted valuation methodologies.
The market approach valuation techniques use prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. When possible, quoted prices (unadjusted) in active markets are used as of the period-end date (such as for mutual funds and money market funds). Otherwise, the Company uses valuation techniques consistent with the market approach including matrix pricing and comparables. Matrix pricing is a mathematical technique employed principally to value debt securities without relying exclusively on quoted prices for those securities but, rather, relying on the securities’ relationship to other benchmark quoted securities. Market approach valuation techniques often use market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering both qualitative and quantitative factors specific to the measurement.
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Income approach valuation techniques convert future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. These techniques rely on current market expectations of future amounts as of the period-end date. Examples of income approach valuation techniques include present value techniques, option-pricing models, binomial or lattice models that incorporate present value techniques and the multi-period excess earnings method.
Cost approach valuation techniques are based upon the amount that would be required to replace the service capacity of an asset at the period-end date, or the current replacement cost. That is, from the perspective of a market participant (seller), the price that would be received for the asset is determined based on the cost to a market participant (buyer) to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence.
While not all three approaches are applicable to all financial assets or liabilities, where appropriate, the Company may use one or more valuation techniques. For all the classes of financial assets and liabilities included in the above hierarchy, excluding certain derivatives and certain privately placed corporate bonds, the Company generally uses the market valuation technique.
Level 1 Securities
The Company’s investments and liabilities classified as Level 1 as of December 31, 2025 and 2024 consisted of mutual funds and related obligations, money market funds and common stocks that are publicly listed and/or actively traded in an established market.
Level 2 Securities
The Company values Level 2 securities using various observable market inputs obtained from a pricing service or asset manager. They prepare estimates of fair value measurements for the Company’s Level 2 securities using proprietary valuation models based on techniques such as matrix pricing which include observable market inputs. The fair value measurements and disclosures guidance defines observable market inputs as the assumptions market participants would use in pricing the asset or liability developed on market data obtained from sources independent of the Company. The extent of the use of each observable market input for a security depends on the type of security and the market conditions at the balance sheet date. Depending on the security, the priority of the use of observable market inputs may change as some observable market inputs may not be relevant or additional inputs may be necessary. The Company uses the following observable market inputs (“standard inputs”), listed in the approximate order of priority, in the pricing evaluation of Level 2 securities: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research data. Further details for Level 2 investment types follow:
U.S. government and government agencies and authorities: U.S. government and government agencies and authorities securities are priced by the Company’s pricing service utilizing standard inputs. Included in this category are U.S. Treasury securities which are priced using vendor trading platform data in addition to the standard inputs.
States, municipalities and political subdivisions: States, municipalities and political subdivisions securities are priced by the Company’s pricing service using material event notices and new issue data inputs in addition to the standard inputs.
Foreign governments: Foreign government securities are primarily fixed maturity securities denominated in local currencies which are priced by the Company’s pricing service using standard inputs. The pricing service also evaluates each security based on relevant market information including relevant credit information, perceived market movements and sector news.
Commercial mortgage-backed, residential mortgage-backed and asset-backed: Commercial mortgage-backed, residential mortgage-backed and asset-backed securities are priced by the Company’s pricing service and asset managers using monthly payment information and collateral performance information in addition to the standard inputs. Additionally, commercial mortgage-backed securities and asset-backed securities utilize new issue data while residential mortgage-backed securities utilize vendor trading platform data.
U.S. and foreign corporate: Corporate securities are priced by the Company’s pricing service using standard inputs. Non-investment grade securities within this category are priced by the Company’s pricing service and asset managers using observations of equity and credit default swap curves related to the issuer in addition to the standard inputs. Certain privately placed corporate bonds are priced by a non-pricing service source using a model with observable inputs including the credit rating, credit spreads, sector add-ons, and issuer specific add-ons.
Non-redeemable preferred stocks: Non-redeemable preferred stocks are priced by the Company’s pricing service using observations of equity and credit default swap curves related to the issuer in addition to the standard inputs.
Short-term investments, cash equivalents, assets held in separate accounts and liabilities related to separate accounts: To price the fixed maturity securities and related obligations in these categories, the pricing service utilizes the standard inputs.
Valuation models used by the pricing service can change from period to period, depending on the appropriate observable inputs that are available at the balance sheet date to price a security.
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Level 3 Securities
The Company’s investments classified as Level 3 as of December 31, 2025 and 2024 consisted of $224.8 million and $184.3 million of fixed maturity and equity securities. All of the Level 3 fixed maturity and equities securities are priced using non-binding third-party quotes, for which the underlying quantitative inputs are not developed by the Company and are not readily available or observable.
Other investments: The Company prices swaptions using a Black-Scholes pricing model incorporating third-party market data, including swap volatility data.
Other assets: The Company prices options using non-binding quotes provided by market makers or broker dealers who are recognized as market participants. Inputs factored into the non-binding quotes include trades in the actual option which is being priced, deal structure, spot rates, volatility, and projected cashflows.
The fair value of the contingent consideration is estimated using a discounted cash flow model. Inputs may include future business performance, earn out caps and applicable discount rates.
Management evaluates the following factors in order to determine whether the market for a financial asset is inactive. The factors include:
-
whether there are few recent transactions,
-
whether little information is released publicly,
-
whether the available prices vary significantly over time or among market participants,
-
whether the prices are stale (i.e., not current), and
-
the magnitude of the bid-ask spread.
Illiquidity did not have a material impact in the fair value determination of the Company’s financial assets as of December 31, 2025 or 2024.
The Company generally obtains one price for each financial asset. The Company performs a periodic analysis to assess if the evaluated prices represent a reasonable estimate of the financial assets’ fair values. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include initial and on-going review of pricing service methodologies, review of the prices received from the pricing service, review of pricing statistics and trends, and comparison of prices for certain securities with two different appropriate price sources for reasonableness. Following this analysis, the Company generally uses the best estimate of fair value based upon all available inputs. On infrequent occasions, a non-pricing service source may be more familiar with the market activity for a particular security than the pricing service. In these cases the price used is taken from the non-pricing service source. The pricing service provides information to indicate which securities were priced using market observable inputs so that the Company can properly categorize the Company’s financial assets in the fair value hierarchy.
Disclosures for Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
The Company also measures the fair value of certain assets and liabilities, generally on an annual basis, or when events or changes in circumstances indicate that the carrying amount of the assets may be affected. These assets include commercial mortgage loans, equity investments accounted for under the measurement alternative, goodwill and finite-lived intangible assets.
In 2025 and 2024, as a result of third-party market observable transactions that were of the same issuer and determined to be similar, the Company marked certain of its equity investments accounted for under the measurement alternative to fair value. The carrying value of investments under the measurement alternative marked to fair value on a non-recurring basis as of December 31, 2025 and 2024 was $9.6 million and $26.6 million, respectively. Given the significant unobservable inputs involved in valuation of these investments, they are classified in Level 3 of the fair value hierarchy. Generally, these valuations utilize the market approach, or an option pricing model backsolve method, which is a valuation approach that can be used to determine the value of common shares for companies with complex capital structures in which there have not been any recent transactions involving common shares. Inputs include capitalization tables, investment past and future performance projections, time to exit, discount rate and volatility based upon an appropriate industry group. For the year ended December 31, 2025, the Company recorded fair value increases of $4.8 million related to three market observable transactions. For the year ended December 31, 2024, the Company recorded fair value increases of $8.7 million related to five market observable transactions.
In 2025 and 2024, as a result of a qualitative analysis indicating an impairment existed, the Company performed a quantitative analysis utilizing a probability weighted scenario model and determined certain investments were impaired. Model inputs include capitalization tables, investment past and future company performance projections, and discount rate. Based
F-35
upon model outputs, impairments of $4.7 million and $23.8 million were recorded for the years ended December 31, 2025 and 2024, respectively.
Refer to Note 14 for the results of the 2025 goodwill impairment testing.
Fair Value of Financial Instruments Disclosures
The financial instruments guidance requires disclosure of fair value information about financial instruments, for which it is practicable to estimate such fair value. Therefore, it requires fair value disclosure for financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets. However, this guidance excludes certain financial instruments, including those related to insurance contracts and those accounted for under the equity method (such as partnerships).
For the financial instruments included within the following financial assets and financial liabilities, the carrying value in the consolidated balance sheets equals or approximates fair value. Please refer to the Fair Values Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures section above for additional information on the financial instruments included within the following financial assets and financial liabilities and the methods and assumptions used to estimate fair value:
-
Cash and cash equivalents;
-
Fixed maturity securities;
-
Equity securities;
-
Short-term investments;
-
Other investments;
-
Other assets;
-
Assets held in separate accounts;
-
Other liabilities; and
-
Liabilities related to separate accounts.
In estimating the fair value of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets, the Company used the following methods and assumptions:
Commercial mortgage loans on real estate: The fair value of commercial mortgage loans on real estate utilizes a third-party matrix pricing model. For fixed rate loans, the matrix process uses a yield buildup approach to create a pricing yield, with components for base yield, credit quality spread, property type spread, and a weighted average life spread. Floating rate loans are priced with a target quality spread over the swap curve. A dollar price for each loan is derived from the pricing yield or spread by a discounted cash flow methodology.
Other investments: Other investments include low income housing tax credits, business debentures, and credit tenant loans which are recorded at cost or amortized cost, as well as policy loans. The carrying value reported for these investments approximates fair value.
Other assets: The carrying value of dealer loans approximates fair value.
Policy reserves under investment products: The fair values for the Company’s policy reserves under investment products are determined using discounted cash flow analysis. Key inputs to the valuation include projections of policy cash flows, reserve runoff, market yields and risk margins.
Funds held under reinsurance: The carrying value reported approximates fair value due to the short maturity of the instruments.
Debt: The fair value of debt is based upon matrix pricing performed by the pricing service utilizing the standard inputs.
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The following tables disclose the carrying value, fair value and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of the dates indicated:
| December 31, 2025 | |||||||||||||||||||||||||||||
| Fair Value | |||||||||||||||||||||||||||||
| Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| Financial Assets | |||||||||||||||||||||||||||||
| Commercial mortgage loans on real estate | $ | 324.7 | $ | 323.1 | $ | — | $ | — | $ | 323.1 | |||||||||||||||||||
| Other investments | 12.4 | 12.4 | 1.1 | — | 11.3 | ||||||||||||||||||||||||
| Other assets | 31.3 | 31.3 | — | — | 31.3 | ||||||||||||||||||||||||
| Total financial assets | $ | 368.4 | $ | 366.8 | $ | 1.1 | $ | — | $ | 365.7 | |||||||||||||||||||
| Financial Liabilities | |||||||||||||||||||||||||||||
| Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) | $ | 1.8 | $ | 1.8 | $ | — | $ | — | $ | 1.8 | |||||||||||||||||||
| Funds held under reinsurance | 266.4 | 266.4 | 266.4 | — | — | ||||||||||||||||||||||||
| Debt | 2,206.9 | 2,164.5 | — | 2,164.5 | — | ||||||||||||||||||||||||
| Total financial liabilities | $ | 2,475.1 | $ | 2,432.7 | $ | 266.4 | $ | 2,164.5 | $ | 1.8 |
| December 31, 2024 | |||||||||||||||||||||||||||||
| Fair Value | |||||||||||||||||||||||||||||
| Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| Financial Assets | |||||||||||||||||||||||||||||
| Commercial mortgage loans on real estate | $ | 342.5 | $ | 333.3 | $ | — | $ | — | $ | 333.3 | |||||||||||||||||||
| Other investments | 23.2 | 23.2 | 1.3 | — | 21.9 | ||||||||||||||||||||||||
| Other assets | 26.3 | 26.3 | — | — | 26.3 | ||||||||||||||||||||||||
| Total financial assets | $ | 392.0 | $ | 382.8 | $ | 1.3 | $ | — | $ | 381.5 | |||||||||||||||||||
| Financial Liabilities | |||||||||||||||||||||||||||||
| Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) | $ | 6.5 | $ | 6.9 | $ | — | $ | — | $ | 6.9 | |||||||||||||||||||
| Funds held under reinsurance | 277.7 | 277.7 | 277.7 | — | — | ||||||||||||||||||||||||
| Debt | 2,083.1 | 1,998.1 | — | 1,998.1 | — | ||||||||||||||||||||||||
| Total financial liabilities | $ | 2,367.3 | $ | 2,282.7 | $ | 277.7 | $ | 1,998.1 | $ | 6.9 |
(1)Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the tables above.
10. Premiums and Accounts Receivable
Receivables are reported net of an allowance for uncollectible amounts. A summary of such receivables is as follows as of the dates indicated:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Insurance premiums receivable | $ | 1,922.7 | $ | 1,974.4 | |||||||
| Other receivables | 77.1 | 86.8 | |||||||||
| Allowance for credit losses | (10.4) | (7.2) | |||||||||
| Total | $ | 1,989.4 | $ | 2,054.0 |
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11. Income Taxes
The components of income tax expense (benefit) were as follows for the periods indicated:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Pre-tax income: | |||||||||||||||||
| Domestic | $ | 1,001.6 | $ | 819.2 | $ | 700.9 | |||||||||||
| Foreign | 85.8 | 108.1 | 105.9 | ||||||||||||||
| Total pre-tax income | $ | 1,087.4 | $ | 927.3 | $ | 806.8 |
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Current expense (benefit): | |||||||||||||||||
| Federal and state | $ | 74.7 | $ | (124.3) | $ | 220.9 | |||||||||||
| Foreign | 38.6 | 46.5 | 51.9 | ||||||||||||||
| Total current expense (benefit) | 113.3 | (77.8) | 272.8 | ||||||||||||||
| Deferred expense (benefit): | |||||||||||||||||
| Federal and state | 112.1 | 262.3 | (80.4) | ||||||||||||||
| Foreign | (10.7) | (17.4) | (28.1) | ||||||||||||||
| Total deferred expense (benefit) | 101.4 | 244.9 | (108.5) | ||||||||||||||
| Total income tax expense (benefit) | $ | 214.7 | $ | 167.1 | $ | 164.3 |
The provision for foreign taxes includes amounts attributable to income from U.S. possessions that are considered foreign under U.S. tax laws. International operations of the Company are subject to income taxes imposed by the jurisdiction in which they operate.
A reconciliation of the federal income tax rate to the Company’s effective income tax rate follows for the year ended December 31, 2025, reflecting the adoption of ASU 2023-09:
| Years Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | |||||||||||||||||||||||||||||||||||
| Amount | Percent | ||||||||||||||||||||||||||||||||||
| U.S. federal statutory income tax rate: | $ | 228.4 | 21.0 | % | |||||||||||||||||||||||||||||||
| Domestic federal: | |||||||||||||||||||||||||||||||||||
| Effect of cross-border tax laws | |||||||||||||||||||||||||||||||||||
| Foreign-derived intangible income | (15.5) | (1.4) | |||||||||||||||||||||||||||||||||
| Tax credits | |||||||||||||||||||||||||||||||||||
| Renewable energy tax credits (1) | (12.5) | (1.1) | |||||||||||||||||||||||||||||||||
| Other | (7.1) | (0.7) | |||||||||||||||||||||||||||||||||
| Change in valuation allowance | — | — | |||||||||||||||||||||||||||||||||
| Nontaxable and nondeductible items, net | 6.8 | 0.6 | |||||||||||||||||||||||||||||||||
| Changes in unrecognized tax benefits | 1.0 | 0.1 | |||||||||||||||||||||||||||||||||
| Other | (7.6) | (0.7) | |||||||||||||||||||||||||||||||||
| Domestic state and local income tax, net of federal income tax effect (2) | 12.1 | 1.1 | |||||||||||||||||||||||||||||||||
| Foreign tax effects (3) | 9.1 | 0.8 | |||||||||||||||||||||||||||||||||
| Effective income tax rate | $ | 214.7 | 19.7 | % |
(1)Pursuant to provisions under the Inflation Reduction Act, the Company purchased transferable federal tax credits during 2025 from various counterparties. Such federal tax credits were purchased at negotiated discounts, resulting in an income tax benefit recorded during the years ended December 31, 2025. Amounts owed to counterparties for the purchased credits are recorded within accounts payable and accrued expenses within the consolidated balance sheets.
(2)In 2025, state and local income taxes in Florida comprised the majority of the domestic state and local income tax, net of federal income tax effect.
(3)Results for 2025 primarily include the impact of foreign earnings taxed at different rates.
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The reconciliation of the federal income tax rate to the Company’s effective income tax rate follows for the years ended December 31, 2024 and 2023 (prior to the adoption of ASU 2023-09):
| Years Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Federal income tax rate: | 21.0 | % | 21.0 | % | |||||||
| Reconciling items: | |||||||||||
| Non-taxable investment income | (0.1) | (0.2) | |||||||||
| Foreign earnings (1) | 0.1 | 0.2 | |||||||||
| Non-deductible compensation | 0.6 | 0.6 | |||||||||
| Change in liability for prior year tax (2) | (1.2) | (0.8) | |||||||||
| Change in valuation allowance | (0.6) | (0.6) | |||||||||
| Transferable federal tax credits (3) | (1.3) | — | |||||||||
| Other | (0.5) | 0.2 | |||||||||
| Effective income tax rate: | 18.0 | % | 20.4 | % |
(1)Results for 2024 and 2023 primarily include the impact of foreign earnings taxed at different rates.
(2)The change in liability for prior year tax in 2024 was primarily related to additional transferable federal tax credits taken on the 2023 income tax return.
(3)Pursuant to provisions under the Inflation Reduction Act, the Company purchased transferable federal tax credits during 2024 from various counterparties. Such federal tax credits were purchased at negotiated discounts, resulting in an income tax benefit recorded during the year ended December 31, 2024. Amounts owed to counterparties for the purchased credits are recorded within accounts payable and accrued expenses within the consolidated balance sheet at December 31, 2024.
Income taxes paid (net of refunds received) for the years ended December 31, 2025, 2024 and 2023 is as follows:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S. Federal | $ | 211.4 | $ | 75.7 | $ | 190.0 | |||||||||||
| U.S. States | 8.8 | 3.6 | 0.1 | ||||||||||||||
| Foreign (1) | 51.4 | 47.3 | 42.8 | ||||||||||||||
| Income taxes paid (refunds received) | $ | 271.6 | $ | 126.6 | $ | 232.9 |
(1)Foreign income taxes paid (net of refunds received) for the year ended December 31, 2025 is made up of the following jurisdictions:
| Year Ended December 31, 2025 | |||||
| Mexico | $ | 19.8 | |||
| Brazil | 14.8 | ||||
| Other | 16.8 | ||||
| Total Foreign | $ | 51.4 |
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023 is as follows:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Balance at beginning of year | $ | (17.3) | $ | (17.0) | $ | (18.5) | |||||||||||
| Additions based on tax positions related to the current year | (1.2) | (0.9) | (0.9) | ||||||||||||||
| Additions for tax positions of prior years | (0.9) | (2.1) | (0.5) | ||||||||||||||
| Reductions for tax positions of prior years | 0.6 | 2.7 | 2.9 | ||||||||||||||
| Balance at end of year | $ | (18.8) | $ | (17.3) | $ | (17.0) |
Total unrecognized tax benefits of $22.8 million, $20.4 million and $19.2 million for the years ended December 31, 2025, 2024, and 2023, respectively, which includes interest and penalties, would impact the Company’s consolidated effective tax rate if recognized. The liability for unrecognized tax benefits is included in accounts payable and other liabilities on the consolidated balance sheets.
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The Company’s continuing practice is to recognize interest expense related to income tax matters in income tax expense. During the years ended December 31, 2025, 2024, and 2023, the Company recognized approximately $0.6 million, $1.2 million and $0.4 million, respectively, of interest expense related to income tax matters. The Company had $4.6 million, $4.0 million and $2.8 million of interest accrued as of December 31, 2025, 2024 and 2023, respectively. The Company had $0.2 million of penalties accrued as of December 31, 2025, $0.1 million as of December 31, 2024 and none as of December 31, 2023.
The Company does not anticipate any significant increase or decrease of unrecognized tax benefit within the next 12 months.
The Company and its subsidiaries file income tax returns in the U.S. and various state and foreign jurisdictions. The Company has substantially concluded all U.S. federal income tax matters for years through 2015. Substantially all non-U.S. income tax matters have been concluded for years through 2012, and all state and local income tax matters have been concluded for years through 2008.
The tax effects of temporary differences that result in significant deferred tax assets and deferred tax liabilities are as follows as of the dates indicated:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred Tax Assets | |||||||||||
| Policyholder and separate account reserves | $ | 580.9 | $ | 506.4 | |||||||
| Net operating loss carryforwards | 36.2 | 37.1 | |||||||||
| Net unrealized appreciation on securities | 14.9 | 79.8 | |||||||||
| Credit carryforwards | 13.1 | 30.6 | |||||||||
| Employee and post-retirement benefits | 7.0 | 9.1 | |||||||||
| Compensation related | 43.8 | 44.2 | |||||||||
| Capital loss carryforwards | 26.7 | 19.1 | |||||||||
| Investments, net | 20.9 | 11.5 | |||||||||
| Other | 113.2 | 84.3 | |||||||||
| Total deferred tax assets | 856.7 | 822.1 | |||||||||
| Less valuation allowance | (20.0) | (16.7) | |||||||||
| Deferred tax assets, net of valuation allowance | 836.7 | 805.4 | |||||||||
| Deferred Tax Liabilities | |||||||||||
| Deferred acquisition costs | (1,094.2) | (1,077.7) | |||||||||
| Intangible assets | (94.0) | (94.3) | |||||||||
| Total deferred tax liabilities | (1,188.2) | (1,172.0) | |||||||||
| Net deferred income tax liabilities | $ | (351.5) | $ | (366.6) |
A cumulative valuation allowance of $20.0 million existed as of December 31, 2025 and $16.7 million as of December 31, 2024 based on management’s assessment that it is more likely than not that certain deferred tax assets attributable to international subsidiaries will not be realized.
The Company’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income of the same character within the carryback or carryforward periods. In assessing future taxable income, the Company considered all sources of taxable income available to realize its deferred tax asset, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carryback years and tax-planning strategies. If changes occur in the assumptions underlying the Company’s tax planning strategies or in the scheduling of the reversal of the Company’s deferred tax liabilities, the valuation allowance may need to be adjusted in the future.
Other than for certain wholly owned Canadian and Latin American subsidiaries, the Company plans to indefinitely reinvest the earnings in other jurisdictions. Under current U.S. tax law, no material income taxes are anticipated on future repatriation of earnings. Therefore, deferred taxes have not been provided.
F-40
The net operating loss carryforwards by jurisdiction are as follows as of the dates indicated:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Federal net operating loss carryforwards | $ | — | $ | — | |||||||
| Foreign net operating loss carryforwards (1) | $ | 143.5 | $ | 146.6 |
(1)Of the $143.5 million as of December 31, 2025, $23.2 million expires between 2026 and 2045, and $120.3 million has an unlimited carryforward.
12. Deferred Acquisition Costs
Information about deferred acquisition costs is as follows as of the dates indicated:
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Beginning balance | $ | 9,992.8 | $ | 9,967.2 | $ | 9,677.1 | |||||||||||
| Costs deferred | 4,292.8 | 3,991.2 | 4,409.8 | ||||||||||||||
| Amortization | (4,098.0) | (3,965.6) | (4,119.7) | ||||||||||||||
| Ending balance | $ | 10,187.6 | $ | 9,992.8 | $ | 9,967.2 |
13. Property and Equipment
Property and equipment consisted of the following as of the dates indicated:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Land | $ | 4.9 | $ | 6.2 | |||||||
| Buildings and improvements | 172.8 | 166.3 | |||||||||
| Furniture, fixtures and equipment | 167.3 | 117.6 | |||||||||
| Software | 1,145.7 | 979.0 | |||||||||
| Total | 1,490.7 | 1,269.1 | |||||||||
| Less accumulated depreciation | (649.0) | (500.8) | |||||||||
| Total | $ | 841.7 | $ | 768.3 |
Depreciation expense for the years ended December 31, 2025, 2024 and 2023 amounted to $156.4 million, $139.4 million and $109.3 million, respectively, including a writedown of $5.3 million for the year ended December 31, 2025 for assets associated with property located in Springfield, Ohio which the Company started marketing for sale in 2025. Depreciation expense is included in underwriting, selling, general and administrative expenses in the consolidated statements of operations.
The assets of the Miami, Florida office met held-for-sale criteria in second quarter 2023 and were reclassified from property and equipment, net, to other assets in the consolidated balance sheet. The Company has ceased depreciation of these assets which are recorded at carrying value of $46.0 million as of December 31, 2025 and 2024, which is less than the estimated fair value less estimated costs to sell. During first quarter 2025, the Company entered into an agreement to sell the Miami, Florida property to a buyer for a purchase price of $126.0 million, subject to certain adjustments and to the buyer receiving the requisite development approvals. There can be no assurance that the transaction will be consummated.
During the year ended December 31, 2025, the Company recorded a $1.8 million loss on the sale of a property that previously served as an operations center located in Florence, South Carolina.
14. Goodwill
The Company has assigned goodwill to its reporting units for impairment testing purposes. The Company has three reporting units consisting of two reporting units within the Global Lifestyle operating segment, Connected Living and Global Automotive, and Global Housing (whereby the reporting unit for impairment testing was at the operating segment level).
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Qualitative Impairment Testing
For the annual October 1, 2024 goodwill impairment test, the Company performed a qualitative assessment for all reporting units with goodwill (Connected Living, Global Automotive and Global Housing) due to high margins between fair value and book value based on quantitative impairment testing in 2023. In conducting a qualitative assessment, the Company analyzed changes in the book value and the financial performance of each reporting unit, including analyzing the historical performance versus plan and the results of quantitative impairment testing performed in 2023. Additionally, the Company assessed critical areas that may impact the reporting units, including macroeconomic and industry trends and market information for the reporting units and their peer companies that could impact the reporting units’ fair value. Based on this assessment, the Company determined that it was more likely than not that the reporting units’ fair values were more than their respective book values and therefore quantitative impairment testing was not necessary for Connected Living, Global Automotive and Global Housing.
Quantitative Impairment Testing
For the annual October 1, 2025 goodwill impairment test, the Company performed quantitative tests for all reporting units with goodwill (Connected Living, Global Automotive and Global Housing), consistent with its standard practice following a qualitative test in the prior year. The following describes the various valuation methodologies used in the quantitative test which were weighted using our judgment as to which were the most representative in determining the estimated fair value of the reporting units.
A Dividend Discount Method (“Income Approach”) was used to value each of the reporting units based upon the present value of expected cash flows available for distribution over future periods. In the Income Approach valuation method, the present values of cash flows reasonably expected to be produced by the reporting units from its operations were summed to produce an estimate of the reporting unit’s businesses equity value on a marketable-control basis. Cash flows were estimated for a discrete projection period based on detailed assumptions, and a terminal value was calculated to reflect the value attributable to cash flows beyond the discrete period. Cash flows and the terminal value were then discounted using each reporting unit’s estimated cost of capital. The estimated fair value of each reporting unit represented the sum of the discounted cash flows and terminal value.
A Guideline Company Method (“Market Approach”), in which we identified a group of peer companies, including the Company, that have similar operations to the reporting unit, was used; however, direct peer comparisons for the reporting units were limited given the diversity of the products and services within the businesses. The Market Approach valuation method employs market multiples derived from market prices of stocks of companies that are engaged in the same or similar businesses as each reporting unit and that are actively traded on a free open market.
While the Income Approach and Market Approach valuation methodologies were considered in assessing fair value, the Income Approach was weighted more heavily since management believes that expected cash flows are the most important factor in the valuation of a business enterprise, and also considering the lack of directly-comparable peer companies. Based on the quantitative assessment performed as of October 1, 2025, the Company concluded that the estimated fair values of the Connected Living, Global Automotive and Global Housing reporting units exceeded their respective book values and therefore determined that the assigned goodwill was not impaired.
A roll forward of goodwill by reportable segment is provided below as of and for the years indicated:
| Global Lifestyle (1) | Global Housing | Corporate and Other | Consolidated | ||||||||||||||||||||||||||
| Balance at December 31, 2023 (2) | $ | 2,292.1 | $ | 316.7 | $ | — | $ | 2,608.8 | |||||||||||||||||||||
| Acquisitions | 11.4 | — | — | 11.4 | |||||||||||||||||||||||||
| Foreign currency translation and other | (4.2) | — | — | (4.2) | |||||||||||||||||||||||||
| Balance at December 31, 2024 (2) | 2,299.3 | 316.7 | — | 2,616.0 | |||||||||||||||||||||||||
| Transfers | — | — | — | — | |||||||||||||||||||||||||
| Acquisitions | 18.3 | — | — | 18.3 | |||||||||||||||||||||||||
| Impairments | — | — | — | — | |||||||||||||||||||||||||
| Foreign currency translation and other | 12.0 | — | — | 12.0 | |||||||||||||||||||||||||
| Balance at December 31, 2025 (2) | $ | 2,329.6 | $ | 316.7 | $ | — | $ | 2,646.3 |
(1)As of December 31, 2025, $807.7 million and $1,521.9 million of goodwill was assigned to the Connected Living and Global Automotive reporting units, respectively. As of December 31, 2024, $793.6 million and $1,505.7 million of goodwill was assigned to the Connected Living and Global Automotive reporting units, respectively.
(2)Consolidated goodwill reflects $1,413.7 million of accumulated impairment losses at December 31, 2025, 2024 and 2023.
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15. VOBA and Other Intangible Assets
VOBA
Information about VOBA, which is included in other assets in the consolidated balance sheets, is as follows for the periods indicated:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Beginning balance | $ | 8.0 | $ | 83.9 | $ | 262.8 | |||||||||||
| Amortization, net of interest accrued | (3.6) | (75.9) | (179.2) | ||||||||||||||
| Foreign currency translation and other | (0.1) | — | 0.3 | ||||||||||||||
| Ending balance | $ | 4.3 | $ | 8.0 | $ | 83.9 |
As of December 31, 2025, the outstanding VOBA balance is primarily related to the 2018 acquisition of TWG within the Global Lifestyle segment.
As of December 31, 2025, the estimated amortization of VOBA will be recognized through 2029 as follows:
| Year | Amount | ||||
| 2026 | $ | 1.7 | |||
| 2027 | 1.4 | ||||
| 2028 | 0.8 | ||||
| 2029 | 0.4 | ||||
| Total | $ | 4.3 |
Other Intangible Assets
Information about other intangible assets is as follows as of the dates indicated:
| As of December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| Carrying Value | Accumulated Amortization | Net Other Intangible Assets | Carrying Value | Accumulated Amortization | Net Other Intangible Assets | ||||||||||||||||||||||||||||||
| Purchased intangible assets | $ | 915.2 | $ | (563.5) | $ | 351.7 | $ | 901.1 | $ | (515.6) | $ | 385.5 | |||||||||||||||||||||||
| Operating intangible assets | 304.5 | (145.9) | 158.6 | 239.2 | (100.8) | 138.4 | |||||||||||||||||||||||||||||
| Total finite-lived intangible assets | 1,219.7 | (709.4) | 510.3 | 1,140.3 | (616.4) | 523.9 | |||||||||||||||||||||||||||||
| Total indefinite-lived intangible assets | 11.7 | — | 11.7 | 11.7 | — | 11.7 | |||||||||||||||||||||||||||||
| Total other intangible assets | $ | 1,231.4 | $ | (709.4) | $ | 522.0 | $ | 1,152.0 | $ | (616.4) | $ | 535.6 |
Purchased intangible assets primarily consist of contract based and customer related intangibles related to acquisitions over the past few years. Operating intangible assets primarily consist of customer related intangibles. These intangible assets are amortized over their useful lives.
Amortization of other intangible assets is as follows as of the dates indicated:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Purchased intangible assets | $ | 67.4 | $ | 69.1 | $ | 77.9 | |||||||||||
| Operating intangible assets | 41.5 | 28.8 | 20.2 | ||||||||||||||
| Total | $ | 108.9 | $ | 97.9 | $ | 98.1 |
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The estimated amortization of other intangible assets with finite lives for the next five years and thereafter is as follows:
| Year | Purchased Intangible Assets | Operating Intangible Assets | Total | ||||||||||||||
| 2026 | $ | 70.8 | $ | 36.2 | $ | 107.0 | |||||||||||
| 2027 | 55.0 | 31.4 | 86.4 | ||||||||||||||
| 2028 | 49.5 | 25.7 | 75.2 | ||||||||||||||
| 2029 | 42.7 | 18.1 | 60.8 | ||||||||||||||
| 2030 | 40.8 | 15.5 | 56.3 | ||||||||||||||
| Thereafter | 92.9 | 31.7 | 124.6 | ||||||||||||||
| Total other intangible assets with finite lives | $ | 351.7 | $ | 158.6 | $ | 510.3 |
16. Reserves
Short Duration Contracts
Continuing Business (Global Lifestyle and Global Housing)
The Company’s short duration contracts include products and services within the Global Lifestyle and Global Housing segments. The main product lines for Global Lifestyle include mobile device protection, extended service contracts for consumer electronics and appliances, vehicle service contracts, and financial services and other insurance. The main product lines for Global Housing include lender-placed homeowners, manufactured housing and flood insurance; voluntary manufactured housing, condominium and homeowners insurance; and renters insurance.
Total IBNR reserves are determined by subtracting case basis incurred losses from the ultimate loss and loss adjustment expense estimates. Ultimate loss and loss adjustment expenses are estimated utilizing generally accepted actuarial loss reserving methods. The reserving methods employed by the Company include the Chain Ladder, Munich Chain Ladder and Bornhuetter-Ferguson methods. Reportable catastrophe losses are analyzed and reserved for separately using a frequency and severity approach. The methods involve aggregating paid and case-incurred loss data by accident period and accident age for each product grouping. As the data ages, loss development factors are calculated that measure emerging claim development patterns between reporting periods. By selecting loss development factors indicative of remaining development, known losses are projected to an ultimate incurred basis for each accident period. The underlying premise of the Chain Ladder method is that future claims development is best estimated using past claims development, whereas the Bornhuetter-Ferguson method employs a combination of past claims development and an estimate of ultimate losses based on an expected loss ratio. The Munich Chain Ladder method takes into account the correlations between paid and incurred development in projecting future development factors and is typically more applicable to products experiencing greater variability in incurred to paid ratios.
The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of the different methods that are applied consistently each period considering significant assumptions, including projected loss development factors and expected loss ratios. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented.
Non-core Operations
Short duration contracts in non-core operations consist of the sharing economy and small commercial products previously reported within Global Housing and the Company’s operations in mainland China. While the sharing economy and small commercial contracts are classified as short duration, the coverages were predominantly commercial liability and have a long reporting and settlement tail compared to property coverages which make up most of the Company’s core operations.
The reserving methodology described for continuing short duration business is applicable for non-core operations (sharing economy and small commercial). Given the nature of commercial liability coverages and its relatively long claim runoff duration, additional emphasis is placed on social inflation impacts and analysis of individual case reserve adequacy on known claims. This is done through use of average cost per claim methods that include allowance for future inflation impacts, detailed open claim inventory analysis, and leveraging industry development patterns to supplement the Company’s own historical claims experience.
Disposed and Runoff Short Duration Insurance Lines
Short duration contracts within the disposed business include certain medical policies no longer offered and Assurant Employee Benefits policies disposed of via reinsurance. Reserves and reinsurance recoverables for previously disposed business are included in the consolidated balance sheets. See Note 17 for additional information.
F-44
The Company has runoff exposure to asbestos, environmental and other general liability claims arising from the Company’s participation in certain reinsurance pools from 1971 through 1985 from contracts discontinued many years ago. The amount of carried case reserves are based on recommendations of the various pool managers. Using information currently available, and after consideration of the reserves reflected in the consolidated financial statements, the Company does not believe or expect that changes in reserve estimates for these claims are likely to be material.
Long Duration Contracts
The following table presents the balances and changes in the long-term care future policy benefits and expenses reserve:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Present value of expected net premiums | |||||||||||||||||
| Balance, beginning of period | $ | 36.4 | $ | 36.4 | $ | 34.2 | |||||||||||
| Beginning balance at original discount rate | 34.0 | 36.5 | 33.4 | ||||||||||||||
| Effect of changes in cash flow assumptions (1) | — | (1.0) | 1.5 | ||||||||||||||
| Effect of actual variances from expected experience | — | 0.9 | 3.5 | ||||||||||||||
| Adjusted beginning of period balance | 34.0 | 36.4 | 38.4 | ||||||||||||||
| Experience variance (2) | 1.5 | 0.1 | — | ||||||||||||||
| Interest accrual | 2.4 | 3.4 | 2.8 | ||||||||||||||
| Net premiums collected | (4.2) | (5.9) | (4.7) | ||||||||||||||
| Ending balance at original discount rate | 33.7 | 34.0 | 36.5 | ||||||||||||||
| Effect of changes in discount rate assumptions | 1.7 | 2.4 | (0.1) | ||||||||||||||
| Transfer to liabilities held for sale (Note 3) | (35.4) | — | — | ||||||||||||||
| Balance, end of period | $ | — | $ | 36.4 | $ | 36.4 | |||||||||||
| Present value of expected future policy benefits | |||||||||||||||||
| Balance, beginning of period | $ | 506.4 | $ | 450.6 | $ | 462.4 | |||||||||||
| Beginning balance at original discount rate | 452.9 | 453.0 | 444.4 | ||||||||||||||
| Effect of actual variances from expected experience | — | 1.5 | 4.4 | ||||||||||||||
| Adjusted beginning of period balance | 452.9 | 454.5 | 448.8 | ||||||||||||||
| Experience variance (2) | (6.1) | (1.3) | 1.0 | ||||||||||||||
| Interest accrual | 19.4 | 26.2 | 19.5 | ||||||||||||||
| Benefit payments | (22.6) | (26.5) | (16.3) | ||||||||||||||
| Ending balance at original discount rate | 443.6 | 452.9 | 453.0 | ||||||||||||||
| Effect of changes in discount rate assumptions | 38.7 | 53.5 | (2.4) | ||||||||||||||
| Transfer to liabilities held for sale (Note 3) | (482.3) | — | — | ||||||||||||||
| Balance, end of period | $ | — | $ | 506.4 | $ | 450.6 | |||||||||||
| Net future policy benefits and expenses | $ | — | $ | 470.0 | $ | 414.2 | |||||||||||
| Related reinsurance recoverable | — | 470.0 | 414.2 | ||||||||||||||
| Net future policy benefits and expenses, after reinsurance recoverable | $ | — | $ | — | $ | — | |||||||||||
| Weighted-average liability duration of the future policy benefits and expenses (in years) | 0.0 | 11.4 | 12.0 |
(1)The increase for the year ending December 31, 2023 was primarily due to historical experience reflecting a decreasing trend in lapse and mortality rates on the long-term care insurance products.
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(2)Experience variance includes adverse development resulting from the allocation of the premium deficiency reserve to the cohort level for issue years where net premiums exceed gross premiums.
As shown above, the long-term care future policy benefits and expenses reserve have been transferred to liabilities held for sale. The following long duration disclosures are included for the comparative prior periods. Refer to Note 3 for more information on the pending subsidiary sale.
The following table presents a reconciliation of the long-term care net future policy benefits and expenses to the future policy benefits and expenses reserve in the consolidated balance sheet:
| December 31, 2024 | |||||
| Long-term care | $ | 470.0 | |||
| Other | 66.7 | ||||
| Total | $ | 536.7 |
The following table presents the amount of undiscounted expected future benefit payments and expected gross premiums for the long-term care insurance contracts:
| December 31, 2024 | |||||
| Expected future benefits payments | $ | 804.4 | |||
| Expected future gross premiums | $ | 61.9 |
The following table presents the amount of long-term care revenue and interest recognized in the consolidated statements of operations:
| Years Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Gross premiums | $ | 1.4 | $ | 1.5 | |||||||
| Interest expense (original discount rate) | $ | 5.7 | $ | 5.6 |
The following table presents the weighted-average interest rate for long-term care insurance contracts:
| December 31, 2024 | |||||
| Interest expense (original discount rate) | 5.95 | % | |||
| Current discount rate | 4.63 | % |
Reserve Roll Forward
The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and are comprised of case and IBNR reserves. These balances do not include the recoverable amounts related to certain high deductible policies in the sharing economy business, included in the non-core operations, for which the Company is responsible for paying the entirety of the claim and is subsequently reimbursed by the insured for the deductible portion of the claim. As of December 31, 2025, the Company had exposure of $86.8 million of reserves below the deductible that it would be responsible for if the clients were to default on their contractual obligation to pay the deductible. Refer to Note 4 for more information on the evaluation of the credit risk exposure from these recoverables.
Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively.
F-46
The best estimate of ultimate loss and loss adjustment expenses is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Claims and benefits payable, at beginning of year | $ | 2,914.2 | $ | 1,989.2 | $ | 2,210.0 | |||||||||||
| Less: Reinsurance ceded and other | (1,669.8) | (886.6) | (1,228.8) | ||||||||||||||
| Net claims and benefits payable, at beginning of year | 1,244.4 | 1,102.6 | 981.2 | ||||||||||||||
| Incurred losses and loss adjustment expenses related to: | |||||||||||||||||
| Current year | 3,070.6 | 2,893.8 | 2,548.4 | ||||||||||||||
| Prior years | (142.8) | (127.3) | (26.6) | ||||||||||||||
| Total incurred losses and loss adjustment expenses | 2,927.8 | 2,766.5 | 2,521.8 | ||||||||||||||
| Paid losses and loss adjustment expenses related to: | |||||||||||||||||
| Current year | 2,272.1 | 2,021.8 | 1,802.3 | ||||||||||||||
| Prior years | 697.8 | 602.9 | 598.1 | ||||||||||||||
| Total paid losses and loss adjustment expenses | 2,969.9 | 2,624.7 | 2,400.4 | ||||||||||||||
| Net claims and benefits payable, at end of year | 1,202.3 | 1,244.4 | 1,102.6 | ||||||||||||||
| Plus: Reinsurance ceded and other (1) | 898.9 | 1,669.8 | 886.6 | ||||||||||||||
| Claims and benefits payable, at end of year (1) | $ | 2,101.2 | $ | 2,914.2 | $ | 1,989.2 |
(1)Includes reinsurance recoverables and claims and benefits payable of $202.2 million, $911.7 million and $123.6 million as of December 31, 2025, 2024 and 2023, respectively, which were ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program.
A comparison of net (favorable) unfavorable prior year development is shown below across the Company’s current and former segments and businesses.
| Prior Year Incurred Loss Development for the Years Ending December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Global Lifestyle | $ | (47.2) | $ | (18.9) | $ | (23.6) | |||||||||||
| Global Housing | (99.6) | (109.7) | (37.1) | ||||||||||||||
| Non-core operations | 3.0 | 13.6 | 40.1 | ||||||||||||||
| All Other | 1.0 | (12.3) | (6.0) | ||||||||||||||
| Total | $ | (142.8) | $ | (127.3) | $ | (26.6) |
The Company experienced net favorable loss development for the years ended December 31, 2025, 2024 and 2023. Global Lifestyle experienced net favorable development in 2025, 2024 and 2023 of $47.2 million, $18.9 million and $23.6 million, respectively. The increase in net favorable development from 2024 to 2025 was primarily due to improvement in the US claims experience for Global Automotive ancillary products and the release of international mobile reserves as a new client’s actual loss experience replaced initial pricing assumptions. Global Housing experienced net favorable loss development in 2025, 2024 and 2023 of $99.6 million, $109.7 million, and $37.1 million, respectively, as claim experience for lender-placed homeowners insurance developed favorably due to easing inflation and favorable frequency compared to initial estimates. The non-core operations contributed net unfavorable loss development of $3.0 million, $13.6 million, and $40.1 million in 2025, 2024 and 2023, respectively. A more detailed explanation of the claims development from Global Lifestyle, Global Housing and non-core operations is presented below, including claims development by accident year. Reserves for the longer-tail property and casualty coverages included in All Other (e.g., asbestos, environmental and other general liability) had no material changes in estimated amounts for claims incurred in prior years.
The following tables represent the Global Lifestyle, Global Housing and non-core operations incurred claims and allocated claim adjustment expenses, net of reinsurance, less cumulative paid claims and allocated claim adjustment expenses, net of reinsurance to reconcile to total claims and benefits payable, net of reinsurance as of December 31, 2025. The tables provide undiscounted information about claims development by accident year for the significant short duration claims and benefits payable balances.
F-47
The following factors are relevant to the loss development information included in the tables below:
-
Table Presentation:** The tables are organized by accident year. For certain categories of claims and for reinsurance recoverables, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us. These reclassifications are shown as development in the respective years in the tables below. Predominantly, the Company writes short-tail lines that are written on an occurrence basis. Five years of claims development information is provided since most of the claims are fully developed after five years, as shown in the average payout ratio tables.
-
Table Groupings:** The groupings have homogeneous risk characteristics with similar development patterns and would generally be subject to similar trends and reflect our reportable segments.
-
Impact of Reinsurance:** The reinsurance program varies by exposure type. Historically, the Company has leveraged facultative and treaty reinsurance, both on pro-rata and excess of loss basis. The reinsurance program may change from year to year, which may affect the comparability of the data presented in the tables.
-
IBNR:** Includes development from past reported losses in IBNR.
-
Information excluded from tables:** Unallocated loss adjustment expenses are excluded from the tables.
-
Foreign exchange rates:** The loss development for operations outside of the U.S. is presented for all accident years using the current exchange rates at December 31, 2025. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends.
-
Acquisitions:** Includes acquisitions from all accident years presented in the tables. For purposes of this disclosure, we have applied the retrospective method for the acquired reserves, including incurred and paid claim development histories throughout the relevant tables. It should be noted that historical reserves for the acquired business were established by the acquired companies using methods, assumptions and procedures then in effect which may differ from our current reserving bases. Accordingly, it may not be appropriate to extrapolate future reserve adequacy based on the aggregated historical results shown in the tables.
-
Dispositions:** Excludes dispositions from all accident years presented in the tables.
-
Claim counts:** Considers a reported claim to be one claim for each claimant or feature for each loss occurrence. Reported claims for losses from assumed reinsurance contracts are not available and hence not included in the reported claims. There are limitations that should be considered on the reported claim count data in the tables below, including:
◦Claim counts are presented only on a reported (not an ultimate) basis;
◦The tables below include lines of business and geographies at a certain aggregated level which may indicate different frequency and severity trends and characteristics, and may not be as meaningful as the claim count information related to the individual products within those lines of business and geographies;
◦Certain lines of business are more likely to be subject to occurrences involving multiple claimants and features, which can distort measures based on the reported claim counts in the table below; and
◦Reported claim counts are not adjusted for ceded reinsurance, which may distort the measure of frequency or severity.
- Required Supplemental Information:** The information about incurred and paid loss development for all periods preceding year ended December 31, 2025 and the related historical claims payout percentage disclosure is unaudited and is presented as required supplementary information.
F-48
Global Lifestyle Net Claims Development Tables
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2025 | |||||||||||||||||||||||||
| Years Ended December 31, | Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1) | Cumulative Number of Reported Claims (2) | ||||||||||||||||||||||||
| Accident Year | 2021 Unaudited | 2022 Unaudited | 2023 Unaudited | 2024 Unaudited | 2025 | |||||||||||||||||||||
| 2021 | $ | 1,350.9 | $ | 1,297.7 | $ | 1,295.0 | $ | 1,293.8 | $ | 1,293.7 | $ | 0.3 | 9,700,922 | |||||||||||||
| 2022 | 1,392.4 | 1,376.3 | 1,372.1 | 1,371.7 | 0.9 | 9,379,951 | ||||||||||||||||||||
| 2023 | 1,630.8 | 1,617.3 | 1,615.3 | 2.1 | 8,230,112 | |||||||||||||||||||||
| 2024 | 1,790.7 | 1,746.0 | 10.7 | 8,160,910 | ||||||||||||||||||||||
| 2025 | 1,928.3 | 255.9 | 8,028,719 | |||||||||||||||||||||||
| Total | $ | 7,955.0 |
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||||||||
| Years Ended December 31, | |||||||||||||||||
| Accident Year | 2021 Unaudited | 2022 Unaudited | 2023 Unaudited | 2024 Unaudited | 2025 | ||||||||||||
| 2021 | $ | 1,123.7 | $ | 1,284.8 | $ | 1,289.0 | $ | 1,290.9 | $ | 1,291.6 | |||||||
| 2022 | 1,166.6 | 1,362.6 | 1,366.8 | 1,368.3 | |||||||||||||
| 2023 | 1,366.2 | 1,604.5 | 1,610.4 | ||||||||||||||
| 2024 | 1,437.1 | 1,700.3 | |||||||||||||||
| 2025 | 1,602.3 | ||||||||||||||||
| Total | $ | 7,572.9 | |||||||||||||||
| Outstanding claims and benefits payable before 2021, net of reinsurance | 5.4 | ||||||||||||||||
| Claims and benefits payable, net of reinsurance | $ | 387.5 |
| Average Annual Payout of Incurred Claims by Age, Net of Reinsurance | ||||||||||||||
| Year 1 Unaudited | Year 2 Unaudited | Year 3 Unaudited | Year 4 Unaudited | Year 5 Unaudited | ||||||||||
| 85.2% | 14.3% | 0.3% | 0.1% | 0.1% |
(1)Includes a provision for development on case reserves.
(2)Number of paid claims plus open (pending) claims. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that the Company’s reinsurance includes non-proportional treaties.
Using the December 31, 2025 foreign exchange rates for all years, Global Lifestyle experienced net favorable loss development of $47.2 million, $18.9 million and $23.6 million for the years ended December 31, 2025, 2024 and 2023, respectively. These amounts are based on the change in net incurred losses from the claims development tables above, plus additional impacts from accident years prior to 2021. Many of these contracts and products contain retrospective commission (profit sharing) provisions that would result in offsetting increases or decreases in expense dependent on if the development was favorable or unfavorable.
Development from Global Lifestyle is attributable to nearly all lines of business across most of the Company’s regions with a concentration on more recent accident years and based on emerging evaluations regarding loss experience each period. For the year ended December 31, 2025, the Global Lifestyle net favorable development of $47.2 million was attributable to Connected Living which contributed $27.9 million, comprised of $15.9 million from mobile, $10.4 million from extended service contracts and $1.6 million from credit and other insurance. The favorable development for mobile was primarily attributable to reserve releases as a new international client’s actual loss experience replaced initial pricing assumptions. For extended service contracts, reserve releases and favorable development are primarily attributable to fewer claims as inforce contract counts decrease slightly and lower severity from new pricing agreements with servicers. For credit and other insurance, the favorable development was primarily attributable to administrative closure of claims with no offsetting settlements. Global Automotive experienced net favorable development of $19.3 million for the year ended December 31, 2025, primarily attributable to favorability in the frequency assumptions in the U.S. service contract products. For the year ended December 31, 2024, the net favorable development was was also primarily from Connected Living and due to similar drivers. For the year ended December 31, 2023, the Global Lifestyle net favorable development was primarily attributable to favorable runoff of international credit products where loss assumptions related to inflation and COVID-19 did not materialize.
F-49
Foreign exchange rate movements over time caused some of the reserve differences shown in the reserve roll forward and prior year incurred loss tables to vary from what is reflected in the claims development tables for Global Lifestyle. The impacts by year were $0.5 million, $(0.9) million, and $0.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. The claims development tables above remove the impact due to changing foreign exchange rates over time for comparability.
Global Housing Net Claims Development Tables
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2025 | |||||||||||||||||||||||||
| Years Ended December 31, | Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1) | Cumulative Number of Reported Claims (2) | ||||||||||||||||||||||||
| Accident Year | 2021 Unaudited | 2022 Unaudited | 2023 Unaudited | 2024 Unaudited | 2025 | |||||||||||||||||||||
| 2021 | $ | 784.0 | $ | 769.0 | $ | 770.5 | $ | 761.4 | $ | 758.6 | $ | 7.1 | 193,897 | |||||||||||||
| 2022 | 862.4 | 809.4 | 803.3 | 799.1 | 22.3 | 186,404 | ||||||||||||||||||||
| 2023 | 901.4 | 814.0 | 784.8 | 56.2 | 177,534 | |||||||||||||||||||||
| 2024 | 1,123.1 | 1,069.6 | 138.6 | 217,176 | ||||||||||||||||||||||
| 2025 | 1,109.3 | 383.7 | 148,209 | |||||||||||||||||||||||
| Total | $ | 4,521.4 |
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||||||||
| Years Ended December 31, | |||||||||||||||||
| Accident Year | 2021 Unaudited | 2022 Unaudited | 2023 Unaudited | 2024 Unaudited | 2025 | ||||||||||||
| 2021 | $ | 517.6 | $ | 690.3 | $ | 727.8 | $ | 743.0 | $ | 749.3 | |||||||
| 2022 | 467.7 | 701.3 | 754.5 | 774.3 | |||||||||||||
| 2023 | 450.9 | 665.3 | 718.3 | ||||||||||||||
| 2024 | 597.9 | 903.5 | |||||||||||||||
| 2025 | 658.9 | ||||||||||||||||
| Total | $ | 3,804.3 | |||||||||||||||
| Outstanding claims and benefits payable before 2021, net of reinsurance | 16.3 | ||||||||||||||||
| Claims and benefits payable, net of reinsurance | $ | 733.4 |
| Average Annual Payout of Incurred Claims by Age, Net of Reinsurance | ||||||||||||||
| Year 1 Unaudited | Year 2 Unaudited | Year 3 Unaudited | Year 4 Unaudited | Year 5 Unaudited | ||||||||||
| 62.4% | 28.1% | 6.4% | 2.2% | 0.9% |
(1)Includes a provision for development on case reserves.
(2)Number of paid claims plus open (pending) claims. Claim frequency is determined at a claimant reporting level. Depending on the nature of the product and related coverage triggers, it is possible for a claimant to contribute multiple claim counts in a given policy period. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that the Company’s reinsurance includes non-proportional treaties.
For the year ended December 31, 2025, 2024 and 2023, Global Housing experienced net favorable loss development of $99.6 million, $109.7 million and $37.1 million, respectively. These amounts are based on the change in net incurred losses from the claims development data above, plus additional impacts from accident years prior to 2021. For the year ended December 31, 2025, the net favorable development for Global Housing was attributable to non-catastrophe claim experience for lender-placed homeowners insurance, as claim experience developed favorably due to easing inflation and favorable frequency compared to initial estimates established during a period with high market uncertainty, stabilization of claim settlement lags, and legislation reform in Florida. For the years ended December 31, 2024 and 2023, the net favorable development for Global Housing was attributable to similar factors as described for the year ended December 31, 2025.
F-50
Non-core Operations Net Claims Development Tables
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | December 31, 2025 | |||||||||||||||||||||||||
| Years Ended December 31, | Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1) | Cumulative Number of Reported Claims (2) | ||||||||||||||||||||||||
| Accident Year | 2021 Unaudited | 2022 Unaudited | 2023 Unaudited | 2024 Unaudited | 2025 | |||||||||||||||||||||
| 2021 | $ | 58.0 | $ | 74.4 | $ | 98.7 | $ | 102.5 | $ | 100.4 | $ | 7.9 | 52,233 | |||||||||||||
| 2022 | 40.2 | 45.9 | 55.6 | 60.9 | 5.0 | 19,351 | ||||||||||||||||||||
| 2023 | 7.2 | 8.6 | 5.7 | 0.4 | 2,713 | |||||||||||||||||||||
| 2024 | 0.5 | 0.5 | — | 1,409 | ||||||||||||||||||||||
| 2025 | 0.7 | — | 1,202 | |||||||||||||||||||||||
| Total | $ | 168.2 |
| Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||||||||
| Years Ended December 31, | |||||||||||||||||
| Accident Year | 2021 Unaudited | 2022 Unaudited | 2023 Unaudited | 2024 Unaudited | 2025 | ||||||||||||
| 2021 | $ | 21.1 | $ | 38.5 | $ | 58.7 | $ | 76.7 | $ | 88.6 | |||||||
| 2022 | 10.3 | 19.6 | 44.2 | 50.8 | |||||||||||||
| 2023 | 3.3 | 4.6 | 4.9 | ||||||||||||||
| 2024 | — | 0.1 | |||||||||||||||
| 2025 | 0.2 | ||||||||||||||||
| Total | $ | 144.6 | |||||||||||||||
| Outstanding claims and benefits payable before 2019, net of reinsurance | 19.4 | ||||||||||||||||
| Claims and benefits payable, net of reinsurance | $ | 43.0 |
| Average Annual Payout of Incurred Claims by Age, Net of Reinsurance | ||||||||||||||
| Year 1 Unaudited | Year 2 Unaudited | Year 3 Unaudited | Year 4 Unaudited | Year 5 Unaudited | ||||||||||
| 30.3% | 16.6% | 24.1% | 15.9% | 13.1% |
(1)Includes a provision for development on case reserves.
(2)Number of paid claims plus open (pending) claims. Claim frequency is determined at a claimant reporting level. Depending on the nature of the product and related coverage triggers, it is possible for a claimant to contribute multiple claim counts in a given policy period. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that the Company’s reinsurance includes non-proportional treaties.
For the years ended December 31, 2025, 2024 and 2023, non-core operations contributed net unfavorable loss development of $3.0 million, $13.6 million, and $40.1 million, including $0.0 million, $1.3 million and $(0.5) million from small commercial and $3.0 million, $12.3 million and $40.6 million from sharing economy products, respectively. The Company stopped writing new small commercial business in 2019 and the claims are in runoff. In 2023, the Company entered into a retroactive reinsurance treaty to cover certain known losses and adverse development up to a $50.0 million aggregate limit, relating to the small commercial business. For the year ended December 31, 2025, the net unfavorable development was primarily attributable to sharing economy due to the deterioration in the anticipated portion and amount of claims exceeding the per policy deductible. For the year ended December 31, 2024, the net unfavorable development in sharing economy was attributable to reserve increases related to higher settlement values, primarily for accident years 2019 and 2020. For the year ended December 31, 2023, the net unfavorable development from sharing economy was driven by emerging adverse claim development trends on known claims as well as reserve assumption revisions to reflect relevant industry benchmarks.
F-51
Reconciliation of the Disclosure of Net Incurred and Paid Claims Development to the Liability for Unpaid Claims and Benefits Payable
| December 31, 2025 | |||||
| Net outstanding liabilities | |||||
| Global Lifestyle | $ | 387.5 | |||
| Global Housing | 733.4 | ||||
| Non-core operations | 43.0 | ||||
| Other short-duration insurance lines (1) | 21.1 | ||||
| Claims and benefits payable, net of reinsurance | 1,185.0 | ||||
| Reinsurance recoverable on unpaid claims | |||||
| Global Lifestyle (2) | 484.1 | ||||
| Global Housing | 384.9 | ||||
| Non-core operations | 28.4 | ||||
| Other short-duration insurance lines (1) | 0.7 | ||||
| Total reinsurance recoverable on unpaid claims | 898.1 | ||||
| Insurance lines other than short-duration (3) | 2.0 | ||||
| Unallocated claim adjustment expense | 16.1 | ||||
| Total claims and benefits payable | $ | 2,101.2 |
(1)Asbestos and pollution reserves represent $11.7 million of the other short-duration insurance lines, with $0.7 million recoveries.
(2)Disposed of property and casualty business represents $144.6 million of the $484.1 million in reinsurance recoverables for Global Lifestyle.
(3)Amount consists of certain long-duration contract exposures, primarily claims and benefits payable on run-off blocks of universal life policies.
17. Reinsurance
In the ordinary course of business, the Company is involved in both the assumption and cession of reinsurance with non-affiliated companies. The Company’s reinsurance agreements do not relieve the Company from its direct obligation to its insureds. Thus, a credit exposure exists to the extent that any reinsurer is unable to meet the obligations assumed in the reinsurance agreements. The following table provides details of the reinsurance recoverables balance as of the dates indicated:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Ceded future policyholder benefits and expense | $ | 4.2 | $ | 340.7 | |||||||
| Ceded unearned premium | 5,062.9 | 5,188.5 | |||||||||
| Ceded claims and benefits payable | 899.0 | 1,808.9 | |||||||||
| Ceded paid losses | 505.2 | 241.4 | |||||||||
| Total | $ | 6,471.3 | $ | 7,579.5 |
A key credit quality indicator for reinsurance is the A.M. Best Company (“A.M. Best”) financial strength ratings of the reinsurer. A.M. Best financial strength ratings are an independent opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. The A.M. Best ratings for the reinsurers in new reinsurance agreements where there is material credit exposure are reviewed at the time of execution. The A.M. Best ratings for existing reinsurance agreements are reviewed on a quarterly basis, or sooner based on developments. The following table provides the reinsurance recoverable as of December 31, 2025 grouped by A.M. Best financial strength ratings:
F-52
| A.M. Best Rating of Reinsurer | Ceded future policyholder benefits and expense | Ceded unearned premiums | Ceded claims and benefits payable | Ceded paid losses | Total | ||||||||||||||||||||||||
| A++ or A+ | $ | 0.2 | $ | 61.7 | $ | 60.8 | $ | 11.4 | $ | 134.1 | |||||||||||||||||||
| A or A- | — | 146.9 | 41.8 | 28.5 | 217.2 | ||||||||||||||||||||||||
| B++ or B | 0.5 | 10.4 | 1.1 | 0.4 | 12.4 | ||||||||||||||||||||||||
| Not Rated (1) | 3.5 | 4,843.9 | 795.3 | 470.1 | 6,112.8 | ||||||||||||||||||||||||
| Total | 4.2 | 5,062.9 | 899.0 | 510.4 | 6,476.5 | ||||||||||||||||||||||||
| Less: Allowance | — | — | — | (5.2) | (5.2) | ||||||||||||||||||||||||
| Net reinsurance recoverable | $ | 4.2 | $ | 5,062.9 | $ | 899.0 | $ | 505.2 | $ | 6,471.3 |
(1)Not Rated ceded claims and benefits payable included reinsurance recoverables of $202.2 million as of December 31, 2025 which were ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program.
A substantial portion of the Not Rated category is related to Global Lifestyle’s and Global Housing’s agreements to reinsure premiums and risks related to business generated by certain clients to the clients’ own captive insurance companies or to reinsurance subsidiaries in which the clients have an ownership interest. To mitigate exposure to credit risk for these reinsurers, the Company evaluates the financial condition of the reinsurer and typically holds substantial collateral (in the form of funds withheld, trusts and letters of credit) as security.
The effect of reinsurance on premiums earned and benefits incurred was as follows for the periods indicated:
| Years Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Long Duration | Short Duration | Total | Long Duration | Short Duration | Total | Long Duration | Short Duration | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Direct earned premiums | $ | 12.4 | $ | 19,379.7 | $ | 19,392.1 | $ | 13.4 | $ | 18,820.1 | $ | 18,833.5 | $ | 14.4 | $ | 18,308.4 | $ | 18,322.8 | |||||||||||||||||||||||||||||||||||
| Premiums assumed | — | 408.2 | 408.2 | — | 178.6 | 178.6 | — | 186.4 | 186.4 | ||||||||||||||||||||||||||||||||||||||||||||
| Premiums ceded | (7.6) | (9,309.8) | (9,317.4) | (8.0) | (9,208.3) | (9,216.3) | (7.9) | (9,113.3) | (9,121.2) | ||||||||||||||||||||||||||||||||||||||||||||
| Net earned premiums | $ | 4.8 | $ | 10,478.1 | $ | 10,482.9 | $ | 5.4 | $ | 9,790.4 | $ | 9,795.8 | $ | 6.5 | $ | 9,381.5 | $ | 9,388.0 | |||||||||||||||||||||||||||||||||||
| Direct policyholder benefits | $ | 37.2 | $ | 7,975.4 | $ | 8,012.6 | $ | 33.7 | $ | 8,777.1 | $ | 8,810.8 | $ | 36.5 | $ | 7,568.2 | $ | 7,604.7 | |||||||||||||||||||||||||||||||||||
| Policyholder benefits assumed | — | 242.8 | 242.8 | 0.1 | 276.9 | 277.0 | — | 241.9 | 241.9 | ||||||||||||||||||||||||||||||||||||||||||||
| Policyholder benefits ceded | (33.7) | (5,293.9) | (5,327.6) | (30.3) | (6,291.0) | (6,321.3) | (31.8) | (5,293.0) | (5,324.8) | ||||||||||||||||||||||||||||||||||||||||||||
| Net policyholder benefits | $ | 3.5 | $ | 2,924.3 | $ | 2,927.8 | $ | 3.5 | $ | 2,763.0 | $ | 2,766.5 | $ | 4.7 | $ | 2,517.1 | $ | 2,521.8 |
The Company had zero invested assets held in trusts or by custodians as of December 31, 2025 and 2024, for the benefit of others related to certain reinsurance arrangements.
The Company utilizes ceded reinsurance for loss protection and capital management, segment client risk and profit sharing and business divestitures.
Loss Protection and Capital Management
As part of the Company’s overall risk and capacity management strategy, the Company purchases reinsurance for certain risks underwritten by the Company’s various segments, including significant individual or catastrophic claims.
For those product lines where there is exposure to losses from catastrophe events, the Company closely monitors and manages its aggregate risk exposure by geographic area. The Company has entered into reinsurance treaties to manage exposure to these types of events.
Segment Client Risk and Profit Sharing
The Global Lifestyle and Global Housing segments write business produced by their clients, such as mobile providers, auto dealers, mortgage lenders and servicers, and financial institutions, and reinsure all or a portion of such business to insurance subsidiaries of some clients. Such arrangements allow significant flexibility in structuring the sharing of risks and profits on the underlying business.
F-53
A substantial portion of Global Lifestyle’s and Global Housing’s reinsurance activities are related to agreements to reinsure premiums and risks related to business generated by certain clients to the clients’ own captive insurance companies or to reinsurance subsidiaries in which the clients have an ownership interest. Through these arrangements, the Company’s insurance subsidiaries share some of the premiums and risk related to client-generated business. When the reinsurance companies are not authorized to do business in the state of domicile of the Company’s insurance subsidiary, the Company’s insurance subsidiary generally obtains collateral, such as a trust or a letter of credit, from the reinsurance company or its affiliate in an amount equal to the outstanding reserves to obtain full statutory financial credit in the domiciliary state for the reinsurance.
Business Divestitures
In the past, the Company has exited certain businesses through reinsurance ceded to third parties. As of December 31, 2025, $489.4 million of these reinsurance recoverables were included in assets held for sale on the consolidated balance sheet, of which $472.0 million was attributable to John Hancock Life Insurance Company (“John Hancock”), which reinsures the long-term care business. Refer to Note 3 for more information on the pending subsidiary sale.
Certain assets backing reserves reinsured under this sale and other sales are held in trusts or separate accounts. If the reinsurers became insolvent, the Company would be exposed to the risk that the assets in the trusts or the separate accounts, if any, could prove insufficient to support the liabilities that would revert back to the Company. In addition, the Company would be responsible for administering these businesses in the event of reinsurer insolvency. The Company does not currently have the administrative systems and capabilities to support these businesses. Accordingly, the Company would need to obtain those capabilities in the event of an insolvency of one or more of the reinsurers of these businesses. The Company might be forced to obtain such capabilities on unfavorable terms with a resulting material adverse effect on our results of operations and financial condition.
John Hancock has an A.M. Best financial strength rating of A+ with a stable outlook. As of December 31, 2025, the Company was not aware of any regulatory actions taken with respect to the solvency of the insurance subsidiaries of John Hancock and the Company has not been obligated to fulfill any of its obligations. John Hancock has paid its obligations when due and there have been no disputes.
18. Debt
The following table shows the principal amount and carrying value of the Company’s outstanding debt, less unamortized discount and issuance costs as applicable, as of December 31, 2025 and 2024:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Principal Amount | Carrying Value | Principal Amount | Carrying Value | ||||||||||||||||||||
| 6.10% Senior Notes due February 2026 | $ | — | $ | — | $ | 175.0 | $ | 174.3 | |||||||||||||||
| 4.90% Senior Notes due March 2028 | 300.0 | 299.0 | 300.0 | 298.6 | |||||||||||||||||||
| 3.70% Senior Notes due February 2030 | 350.0 | 348.5 | 350.0 | 348.2 | |||||||||||||||||||
| 2.65% Senior Notes due January 2032 | 350.0 | 347.7 | 350.0 | 347.3 | |||||||||||||||||||
| 6.75% Senior Notes due February 2034 | 275.0 | 273.1 | 275.0 | 272.8 | |||||||||||||||||||
| 5.55% Senior Notes due February 2036 | 300.0 | 296.1 | — | — | |||||||||||||||||||
| 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (1) | 400.0 | 398.3 | 400.0 | 397.7 | |||||||||||||||||||
| 5.25% Subordinated Notes due January 2061 | 250.0 | 244.2 | 250.0 | 244.2 | |||||||||||||||||||
| Total Debt | $ | 2,206.9 | $ | 2,083.1 |
(1)Bears a 7.00% annual interest rate from March 2018 to March 2028 and an annual interest rate equal to three-month LIBOR plus 4.135% thereafter. Under the terms of the debt agreement, a substitute or successor base rate will be used since the LIBOR base rate has been discontinued.
For the years ended December 31, 2025, 2024 and 2023, interest expense was $109.7 million, $107.0 million and $108.0 million, respectively. Interest expense includes derivative-related activities described in the interest rate derivatives section below. There was $36.0 million and $33.5 million of accrued interest as of December 31, 2025 and 2024, respectively. Interest paid on debt was $107.2 million, $107.4 million and $107.4 million for the years ended December 31, 2025, 2024 and 2023.
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Debt Issuances
Senior Notes
2036 Senior Notes: In August 2025, the Company issued senior notes due February 2036 with an aggregate principal amount of $300.0 million, which bear interest at a rate of 5.55% per year and were issued at a 0.322% discount to the public (the “2036 Senior Notes”). Interest on the 2036 Senior Notes is payable semi-annually in arrears on February 15 and August 15 of each year, beginning on February 15, 2026. Prior to November 15, 2035, the Company may redeem all or part of the 2036 Senior Notes at a redemption price equal to 100% of the aggregate principal amount of the 2036 Senior Notes to be redeemed, plus a make-whole premium as described in the 2036 Senior Notes and accrued and unpaid interest up to the redemption date. On or after that date, the Company may redeem all or part of the 2036 Senior Notes at any time at a redemption price equal to 100% of the aggregate principal amount of the 2036 Senior Notes to be redeemed, plus accrued and unpaid interest up to the redemption date.
2026 Senior Notes: In February 2023, the Company issued senior notes due February 2026 with an aggregate principal amount of $175.0 million, which bore interest at a rate of 6.10% per year and were issued at a 0.035% discount to the public (the “2026 Senior Notes”). Interest on the 2026 Senior Notes was payable semi-annually in arrears on February 27 and August 27 of each year, beginning on August 27, 2023. In August 2025, the Company used the net proceeds from the sale of the 2036 Senior Notes to redeem all of the 2026 Senior Notes at a make-whole premium plus accrued and unpaid interest up to the redemption date, to pay related fees and expenses, and for general corporate purposes. In connection with the redemption, the Company recognized a net loss from the extinguishment of the debt of $1.3 million, which included the make-whole premium and the remaining deferred debt issuance costs for the 2026 Senior Notes, partially offset by a gain from the termination of a hedge of the interest rate risk associated with the redeemed notes. Refer to the Interest Rate Derivatives section below for more information.
2032 Senior Notes: In June 2021, the Company issued senior notes with an aggregate principal amount of $350.0 million, which bear interest at a rate of 2.65% per year, mature in January 2032 and were issued at a 0.158% discount to the public (the “2032 Senior Notes”). Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2022. Prior to October 15, 2031, the Company may redeem the 2032 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2032 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the aggregate principal amount being redeemed plus accrued and unpaid interest.
2030 Senior Notes: In August 2019, the Company issued senior notes with an aggregate principal amount of $350.0 million, which bear interest at a rate of 3.70% per year, mature in February 2030 and were issued at a 0.035% discount to the public (the “2030 Senior Notes”). Interest is payable semi-annually in arrears beginning in February 2020. Prior to November 2029, the Company may redeem the 2030 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2030 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the aggregate principal amount being redeemed plus accrued and unpaid interest.
2028 Senior Notes: In March 2018, the Company issued senior notes with an aggregate principal amount of $300.0 million, which bear interest at 4.90% per year, mature in March 2028 and were issued at a 0.383% discount to the public (the “2028 Senior Notes”). Interest on the 2028 Senior Notes is payable semi-annually. Prior to December 2027, the Company may redeem the 2028 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2028 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the aggregate principal amount being redeemed plus accrued and unpaid interest.
The interest rate payable on each of the 2028 Senior Notes, 2030 Senior Notes and 2032 Senior Notes will be subject to adjustment from time to time, if either Moody’s Investor Service, Inc. (“Moody’s”) or S&P Global Ratings, a division of S&P Global Inc. (“S&P”) downgrades the credit rating assigned to such series of senior notes to Ba1 or below or to BB+ or below, respectively, or subsequently upgrades the credit ratings once the senior notes are at or below such levels. The following table details the increase in interest rate over the issuance rate by rating with the impact equal to the sum of the number of basis points next to such rating for a maximum increase of 200 basis points over the issuance rate:
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| Rating Agencies | ||||||||||||||||||||
| Rating Levels | Moody’s (1) | S&P (1) | Interest Rate Increase (2) | |||||||||||||||||
| 1 | Ba1 | BB+ | 25 basis points | |||||||||||||||||
| 2 | Ba2 | BB | 50 basis points | |||||||||||||||||
| 3 | Ba3 | BB- | 75 basis points | |||||||||||||||||
| 4 | B1 or below | B+ or below | 100 basis points |
(1)Including the equivalent ratings of any substitute rating agency.
(2)Applies to each rating agency individually.
In February 2004, the Company issued senior notes with an aggregate principal amount of $475.0 million at a 0.61% discount to the public, which bear interest at 6.75% per year and matures in February 2034. Interest is payable semi-annually. These senior notes are not redeemable prior to maturity. In December 2016 and August 2019, the Company completed cash tender offers of $100.0 million each in aggregate principal amount of such senior notes.
Subordinated Notes
2061 Subordinated Notes: In November 2020, the Company issued subordinated notes due January 2061 with a principal amount of $250.0 million, which bear interest at an annual rate of 5.25% (the “2061 Subordinated Notes”). Interest is payable quarterly in arrears beginning in April 2021. On or after January 2026, the Company may redeem the 2061 Subordinated Notes in whole at any time or in part from time to time, at a redemption price equal to their principal amount plus accrued and unpaid interest, provided that if they are not redeemed in whole, a minimum amount must remain outstanding. At any time prior to January 2026, the Company may redeem the 2061 Subordinated Notes in whole but not in part, within 90 days after the occurrence of a tax event, rating agency event or regulatory capital event as defined in the global note representing the 2061 Subordinated Notes, at a redemption price equal to (i) with respect to a rating agency event, 102% of their principal amount and (ii) with respect to a tax event or a regulatory capital event, their principal amount plus accrued and unpaid interest. See below, under 2048 Subordinated Notes (as defined below), for more information on terms applicable to both series.
2048 Subordinated Notes: In March 2018, the Company issued fixed-to-floating rate subordinated notes due March 2048 with principal amount of $400.0 million (the “2048 Subordinated Notes”), which bear interest from March 2018 to March 2028 at an annual rate of 7.00%, payable semi-annually. The 2048 Subordinated Notes will bear interest at an annual rate equal to three-month LIBOR plus 4.135%, payable quarterly, beginning in June 2028. Under the terms of the debt agreement, a substitute or successor base rate will be used since the LIBOR base rate has been discontinued. On or after March 2028, the Company may redeem the 2048 Subordinated Notes in whole at any time or in part from time to time, at a redemption price equal to their principal amount plus accrued and unpaid interest, provided that if they are not redeemed in whole, a minimum amount must remain outstanding. At any time prior to March 2028, the Company may redeem the 2048 Subordinated Notes in whole but not in part, within 90 days after the occurrence of a tax event, rating agency event or regulatory capital event as defined in the global note representing the 2048 Subordinated Notes, at a redemption price equal to (i) with respect to a rating agency event, 102% of their principal amount and (ii) with respect to a tax event or a regulatory capital event, their principal amount plus accrued and unpaid interest.
In addition, so long as no event of default with respect to the 2048 Subordinated Notes and 2061 Subordinated Notes (together, the “Subordinated Notes”) has occurred and is continuing, the Company has the right, on one or more occasions, to defer the payment of interest on the Subordinated Notes for one or more consecutive interest periods for up to five years as described in the global note representing the Subordinated Notes. During a deferral period, interest will continue to accrue on the Subordinated Notes at the then-applicable interest rate. At any time when the Company has given notice of its election to defer interest payments on the Subordinated Notes, the Company generally may not make payments on or redeem or purchase any shares of the Company’s capital stock or any of its debt securities or guarantees that rank upon the Company’s liquidation on a parity with or junior to the Subordinated Notes, subject to certain limited exceptions.
Credit Facility and Commercial Paper Program
In June 2025, the Company entered into a $500.0 million five-year senior unsecured revolving credit facility (the “Credit Facility”) with certain lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as syndication agent. The Credit Facility replaced the prior $500.0 million five-year senior unsecured revolving credit facility (the “Prior Credit Facility”), which terminated upon the effectiveness of the Credit Facility. The Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and letters of credit from a sole issuing bank in an aggregate amount of $500.0 million, which may be increased up to $750.0 million. The Credit Facility is available until June 2030, provided the Company is in compliance with all covenants. The Credit Facility has a sublimit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for the commercial paper program or for general corporate purposes.
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The Company made no borrowings under the Credit Facility or the Prior Credit Facility during the year ended December 31, 2025, and no loans were outstanding under the Credit Facility as of December 31, 2025.
The Company’s commercial paper program requires the Company to maintain liquidity facilities either in an available amount equal to any outstanding notes from the program or in an amount sufficient to maintain the ratings assigned to the notes issued from the program. The Company’s commercial paper is rated AMB-1+ by A.M. Best, P-2 by Moody’s and A-2 by S&P. The Company’s subsidiaries do not maintain commercial paper or other borrowing facilities. This program is backed up by the Credit Facility, of which $500.0 million was available at December 31, 2025.
The Company did not use the commercial paper program during the years ended December 31, 2025 or 2024 and there were no amounts relating to the commercial paper program outstanding as of December 31, 2025 or 2024.
Covenants
The Credit Facility contains restrictive covenants including:
(i)Maintenance of a maximum consolidated total debt to capitalization ratio on the last day of any fiscal quarter of not greater than 0.35 to 1.0, subject to certain exceptions; and
(ii)Maintenance of a consolidated adjusted net worth in an amount not less than a “Minimum Amount” equal to the sum of (a) $4.64 billion, (b) 25% of consolidated net income (if positive) for each fiscal quarter ending after June 30, 2025 and (c) 25% of the net cash proceeds received from any capital contribution to, or issuance of any capital stock, disqualified capital stock and hybrid securities.
In the event of a breach of certain covenants, all obligations under the Credit Facility, including unpaid principal and accrued interest and outstanding letters of credit, may become immediately due and payable.
Interest Rate Derivatives
From time to time, the Company has entered into derivative transactions to hedge the risk associated with changes in interest rates in anticipation of debt issuances. The Company determined that the derivatives qualified for hedge accounting as effective cash flow hedges and recognized deferred gains (losses) upon settlement that were reported through other comprehensive income. The deferred gains (losses) are recognized as a reduction (addition) in interest expense related to the 2026 Senior Notes, the 2028 Senior Notes, 2036 Senior Notes and the 2048 Subordinated Notes on an effective yield basis. The amortization of the net deferred gain was $2.6 million, $2.7 million and $2.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. The remaining total deferred gain as of December 31, 2025 and 2024 was $4.5 million and $8.1 million, respectively.
19. Equity Transactions
Common Stock
Changes in the number of shares of common stock outstanding are as follows for the periods presented:
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Shares of common stock outstanding, beginning | 50,833,749 | 51,955,994 | 52,830,381 | ||||||||||||||
| Vested restricted stock and restricted stock units, net (1) | 163,265 | 178,120 | 170,911 | ||||||||||||||
| Issuance related to performance share units (1) | 131,078 | 133,136 | 142,091 | ||||||||||||||
| Issuance related to ESPP | 97,129 | 115,019 | 131,815 | ||||||||||||||
| Shares of common stock repurchased | (1,432,302) | (1,548,520) | (1,319,204) | ||||||||||||||
| Shares of common stock outstanding, ending | 49,792,919 | 50,833,749 | 51,955,994 |
(1)Vested restricted stock, restricted stock units and performance share units are shown net of shares of common stock retired to cover participant income tax liabilities.
The Company is authorized to issue 800,000,000 shares of common stock. In addition, 150,001 shares of Class B common stock and 400,001 shares of Class C common stock are authorized but have not been issued.
Preferred Stock
The Company is authorized to issue 200,000,000 shares of preferred stock. As of December 31, 2025, none are outstanding.
F-57
Stock Repurchase
In November 2025, the Company’s Board of Directors (the “Board”) authorized the Company to repurchase up to $700.0 million aggregate cost at purchase of its outstanding common stock. In November 2023, the Board authorized the Company to repurchase up to $600.0 million aggregate cost at purchase of its outstanding common stock.
During the year ended December 31, 2025, the Company repurchased 1,432,302 shares of the Company’s outstanding common stock at a cost of $299.9 million, exclusive of commissions, leaving $774.6 million remaining in the aggregate under the November 2025 and November 2023 repurchase authorizations at December 31, 2025. During the years ended December 31, 2024 and 2023, the Company repurchased 1,548,520 and 1,319,204 shares of the Company’s outstanding common stock at a cost, exclusive of commissions, of $299.9 million and $200.0 million, respectively.
The timing and the amount of future repurchases will depend on market conditions, the Company’s financial condition, results of operations and liquidity and other factors.
20. Stock Based Compensation
In accordance with the guidance on share-based compensation, the Company recognized stock-based compensation costs based on the grant date fair value. For the years ended December 31, 2025, 2024 and 2023, the Company recognized compensation costs net of a 5% per year estimated forfeiture rate on a pro-rated basis over the remaining vesting period.
Long-Term Equity Incentive Plan
Under the Assurant, Inc. 2017 Long Term Equity Incentive Plan (the “ALTEIP”), as amended and restated, the Company is authorized to issue up to 1,840,112 new shares of the Company’s common stock to employees, officers, consultants and non-employee directors. Under the ALTEIP, the Company may grant awards based on shares of its common stock, including stock options, stock appreciation rights, restricted stock (including performance shares), unrestricted stock, restricted stock units (“RSUs”), performance units (also known as performance share units or “PSUs”) and dividend equivalents. All share-based grants are awarded under the ALTEIP.
The Compensation and Talent Committee of the Board (the “Compensation Committee”) awards RSUs and PSUs annually. RSUs and PSUs are promises to issue actual shares of common stock at the end of a vesting period or performance period. Under the ALTEIP and the related equity grant policy, the Company’s CEO is authorized by the Board to grant common stock, restricted stock and RSUs to employees other than the Company’s Section 16 officers as CEO Equity Awards and On Cycle ALTEIP Awards. For the CEO Equity Awards, the Compensation Committee recommends total annual funding and the awards are expressed as a dollar amount converted into shares as of each grant date. Restricted stock and RSUs granted under the CEO Equity Awards program may have different vesting periods.
Restricted Stock Units
The fair value of RSUs is estimated using the fair market value of a share of the Company’s common stock at the date of grant. The RSUs granted to employees under the ALTEIP are based on salary grade and performance and generally vest one-third each year over a three-year period. RSUs receive dividend equivalents in cash during the restricted period and do not have voting rights during the restricted period. RSUs granted to non-employee directors also vest one-third each year over a three-year period; however, issuance of vested shares and payment of dividend equivalents is deferred until separation from Board service.
A summary of the Company’s outstanding RSUs is presented below:
| Restricted Stock Units | Weighted-Average Grant-Date Fair Value | ||||||||||
| Restricted stock units outstanding at December 31, 2024 | 502,954 | $ | 146.56 | ||||||||
| Grants (1) | 174,637 | 210.46 | |||||||||
| Vests (2) | (233,832) | 147.88 | |||||||||
| Forfeitures and adjustments | (20,059) | 185.40 | |||||||||
| Restricted stock units outstanding at December 31, 2025 | 423,700 | $ | 170.36 | ||||||||
| Restricted stock units vested, but deferred at December 31, 2025 | 60,646 | $ | 111.86 |
(1)The weighted average grant date fair value for RSUs granted in 2024 and 2023 was $181.54 and $116.76, respectively.
(2)The total fair value of RSUs vested was $48.8 million, $45.5 million and $29.9 million for the years ended December 31, 2025, 2024 and 2023, respectively.
F-58
The following table shows a summary of RSU compensation expense during the years ended December 31, 2025, 2024 and 2023:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| RSU compensation expense | $ | 33.9 | $ | 33.0 | $ | 31.7 | |||||||||||
| Income tax benefit | (6.2) | (6.1) | (6.0) | ||||||||||||||
| RSU compensation expense, net of tax | $ | 27.7 | $ | 26.9 | $ | 25.7 |
As of December 31, 2025, there was $18.2 million of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 0.88 years.
Performance Share Units
The number of shares of common stock a participant will receive upon vesting of a PSU award is contingent upon the Company’s performance with respect to selected metrics, as identified below. The payout levels can vary between 0% and 200% (maximum) of the target (100%) ALTEIP award amount, based on the Company’s level of performance against the selected metrics. PSUs accrue dividend equivalents during the performance period based on a target payout and will be paid in cash at the end of the performance period based on the actual number of shares issued.
The Compensation Committee has established two equally weighted performance measures for PSU awards:
-
Total shareholder return relative to the S&P 500 Index (“market condition”), defined as appreciation in the Company’s common stock plus dividend yield to stockholders and will be measured by the performance of the Company relative to the S&P 500 Index over the three-year performance period.
-
Adjusted earnings per diluted common share, excluding reportable catastrophes (“performance condition”) is a Company-specific profitability metric and is defined as the Company’s adjusted earnings, excluding reportable catastrophes, divided by the fully diluted weighted average common shares outstanding. This metric is an absolute metric that is measured against a three-year cumulative target established by the Compensation Committee at the award date and is not tied to the performance of peer companies. Prior to 2023, net operating income per diluted common share, excluding reportable catastrophes, was used as the company specific profitability metric.
A summary of the Company’s outstanding PSUs is presented below:
| Performance Share Units | Weighted-Average Grant-Date Fair Value | ||||||||||
| Performance share units outstanding at December 31, 2024 | 585,506 | $ | 170.44 | ||||||||
| Grants (1) | 174,473 | 237.14 | |||||||||
| Vests (2) | (205,515) | 223.65 | |||||||||
| Performance adjustment (3) | 55,695 | 240.65 | |||||||||
| Forfeitures and adjustments | (27,739) | 209.49 | |||||||||
| Performance share units outstanding at December 31, 2025 | 582,420 | $ | 176.53 |
(1)The weighted average grant date fair value for PSUs granted in 2024 and 2023 was $207.00 and $114.91, respectively.
(2)The total fair value of PSUs vested was $43.3 million, $39.8 million and $25.8 million for the years ended December 31, 2025, 2024 and 2023, respectively.
(3)Represents the change in PSUs issued based upon the attainment of performance goals established by the Company.
PSU grants above represent initial target awards and do not reflect potential increases or decreases resulting from the Company’s level of performance against the selected metrics to be determined at the end of the prospective performance period.
The fair value of the performance condition was estimated using the fair market value of a share of the Company’s common stock at the date of grant. The fair value of the market condition was estimated on the date of grant using a Monte Carlo simulation model, which utilizes multiple variables that determine the probability of satisfying the market condition stipulated in the award. Expected volatilities were based on the historical prices of the Company’s common stock and peer group, the expected term was assumed to equal the average of the vesting period of the PSUs and the risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant.
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| For awards granted during the years ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Expected volatility | 25.86 | % | 25.76 | % | 26.84 | % | |||||||||||
| Expected term (years) | 2.79 | 2.79 | 2.80 | ||||||||||||||
| Risk free interest rate | 3.92 | % | 4.44 | % | 3.93 | % |
The following table shows a summary of PSU compensation expense during the years ended December 31, 2025, 2024 and 2023:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| PSU compensation expense | $ | 48.7 | $ | 45.4 | $ | 40.3 | |||||||||||
| Income tax benefit | (6.1) | (6.0) | (5.8) | ||||||||||||||
| PSU compensation expense, net of tax | $ | 42.6 | $ | 39.4 | $ | 34.5 |
As of December 31, 2025, there was $36.4 million of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 0.64 years.
Employee Stock Purchase Plan
Under the Employee Stock Purchase Plan (the “ESPP”), the Company is authorized to issue up to 5,000,000 new shares of common stock to employees who are participants in the ESPP. The ESPP allows eligible employees to contribute, through payroll deductions, portions of their after-tax compensation in each offering period toward the purchase of shares of the Company’s common stock. There are two offering periods during the year (January 1 through June 30 and July 1 through December 31) and shares of common stock are purchased at the end of each offering period at 90% of the lower of the closing price of the common stock on the first or last day of the offering period. Participants must be employed on the last trading day of the offering period in order to purchase shares of common stock under the ESPP. The maximum number of shares of common stock that can be purchased is 5,000 per employee. Participants’ contributions are limited to a maximum contribution of $7.5 thousand per offering period, or $15.0 thousand per year.
The ESPP is offered to individuals who are scheduled to work a certain number of hours per week, have been continuously employed for at least six months by the start of the offering period, are not temporary employees (classified as temporary and employed less than 12 months) and have not been on a leave of absence for more than 90 days immediately preceding the offering period.
In January 2026, the Company issued 47,628 shares of common stock at a discounted price of $177.89 for the offering period of July 1, 2025 through December 31, 2025. In January 2025, the Company issued 50,763 shares of common stock at a discounted price of $150.20 for the offering period of July 1, 2024 through December 31, 2024.
In July 2025, the Company issued 46,365 shares of common stock to employees at a discounted price of $177.74 for the offering period of January 1, 2025 through June 30, 2025. In July 2024, the Company issued 49,969 shares of common stock to employees at a discounted price of $149.63 for the offering period of January 1, 2024 through June 30, 2024.
The compensation expense recorded related to the ESPP was $3.1 million, $2.8 million and $3.1 million for the years ended December 31, 2025, 2024 and 2023, respectively. The related income tax benefit for disqualified disposition was $0.2 million for the years ended December 31, 2025 and December 31, 2024, and 0.1 million for the year ended December 31, 2023.
The fair value of each award under the ESPP was estimated at the beginning of each offering period using the Black-Scholes option-pricing model and assumptions in the table below. Expected volatilities are based on implied volatilities from traded options on the Company’s common stock and the historical volatility of the Company’s common stock. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is based on the current annualized dividend and common stock price as of the grant date.
| For awards issued during the years ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Expected volatility | 23.10 - 25.92% | 19.60 - 23.95% | 28.57 - 31.63% | ||||||||||||||
| Risk free interest rates | 4.25 - 4.29% | 5.24 - 5.37% | 4.77 - 5.53% | ||||||||||||||
| Dividend yield | 1.50 - 1.61% | 1.68 - 1.71% | 2.18 - 2.20% | ||||||||||||||
| Expected term (years) | 0.5 | 0.5 | 0.5 |
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Non-Stock Based Incentive Plans
Deferred Compensation
The Company’s deferred compensation programs consist of the AIP, the ASIC and the ADC. The AIP and the ASIC provided key employees the ability to exchange a portion of their compensation for options to purchase certain third-party mutual funds. The AIP and the ASIC were frozen in December 2004 and no additional contributions can be made to either the AIP or the ASIC. Effective March 1, 2005 and amended and restated on January 1, 2025, the ADC Plan was established in order to comply with the American Jobs Creation Act of 2004 (the “Jobs Act”) and Section 409A of the Internal Revenue Code of 1986, as amended (the “IRC”). The ADC provides key employees the ability to defer a portion of their eligible compensation to be notionally invested in a variety of mutual funds. Deferrals and withdrawals under the ADC are intended to be fully compliant with the Jobs Act definition of eligible compensation and distribution requirements.
21. Accumulated Other Comprehensive Income
Certain amounts included in the consolidated statements of comprehensive income are net of reclassification adjustments. The following tables summarize those reclassification adjustments (net of taxes) for the periods indicated:
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | Net unrealized losses on investments | Net unrealized gains on derivative transactions | Unamortized net losses on Pension Plans | Accumulated other comprehensive loss | |||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | (415.2) | $ | (291.9) | $ | 2.2 | $ | (131.2) | $ | (836.1) | |||||||||||||||||||
| Change in accumulated other comprehensive income (loss) before reclassifications | 63.7 | 171.5 | 1.2 | (3.2) | 233.2 | ||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | — | 57.4 | (1.6) | 2.9 | 58.7 | ||||||||||||||||||||||||
| Net current-period other comprehensive income (loss) | 63.7 | 228.9 | (0.4) | (0.3) | 291.9 | ||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | (351.5) | $ | (63.0) | $ | 1.8 | $ | (131.5) | $ | (544.2) |
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | Net unrealized losses on investments | Net unrealized gains on derivative transactions | Unamortized net losses on Pension Plans | Accumulated other comprehensive loss | |||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | (351.9) | $ | (305.5) | $ | 8.5 | $ | (116.1) | $ | (765.0) | |||||||||||||||||||
| Change in accumulated other comprehensive income (loss) before reclassifications | (63.3) | (43.0) | — | (13.4) | (119.7) | ||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | — | 56.6 | (6.3) | (1.7) | 48.6 | ||||||||||||||||||||||||
| Net current-period other comprehensive income (loss) | (63.3) | 13.6 | (6.3) | (15.1) | (71.1) | ||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | (415.2) | $ | (291.9) | $ | 2.2 | $ | (131.2) | $ | (836.1) |
F-61
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | Net unrealized losses on investments | Net unrealized gains on derivative transactions | Unamortized net losses on Pension Plans | Accumulated other comprehensive loss | |||||||||||||||||||||||||
| Balance at December 31, 2022 | $ | (394.0) | $ | (513.2) | $ | 9.8 | $ | (88.8) | $ | (986.2) | |||||||||||||||||||
| Change in accumulated other comprehensive income (loss) before reclassifications | 42.1 | 171.9 | (0.6) | (17.6) | 195.8 | ||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | — | 35.8 | (0.7) | (9.7) | 25.4 | ||||||||||||||||||||||||
| Net current-period other comprehensive income (loss) | 42.1 | 207.7 | (1.3) | (27.3) | 221.2 | ||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | (351.9) | $ | (305.5) | $ | 8.5 | $ | (116.1) | $ | (765.0) |
The following tables summarize the reclassifications out of AOCI for the periods indicated.
| Details about AOCI components | Amount reclassified from AOCI | Affected line item in the statement where net income is presented | ||||||||||||||||||||||||
| Years Ended December 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||
| Net unrealized losses on investments | $ | 72.7 | $ | 71.6 | $ | 45.3 | Net realized losses on investments and fair value changes to equity securities | |||||||||||||||||||
| (15.3) | (15.0) | (9.5) | Income tax expense | |||||||||||||||||||||||
| $ | 57.4 | $ | 56.6 | $ | 35.8 | Net of tax | ||||||||||||||||||||
| Net unrealized (gains) losses on derivative transactions related to: | ||||||||||||||||||||||||||
| Interest rate derivatives | $ | (2.6) | $ | (2.8) | $ | (3.4) | Interest expense | |||||||||||||||||||
| Interest rate derivatives | (0.3) | — | — | Loss (gain) on extinguishment of debt | ||||||||||||||||||||||
| Foreign exchange derivatives | 0.9 | (5.2) | 2.5 | Underwriting, selling, general and administrative expenses | ||||||||||||||||||||||
| (2.0) | (8.0) | (0.9) | ||||||||||||||||||||||||
| 0.4 | 1.7 | 0.2 | Income tax expense | |||||||||||||||||||||||
| $ | (1.6) | $ | (6.3) | $ | (0.7) | Net of tax | ||||||||||||||||||||
| Amortization of pension and postretirement unrecognized net periodic benefit cost: | ||||||||||||||||||||||||||
| Amortization of net loss | $ | 1.2 | $ | 1.2 | $ | 1.0 | (1) | |||||||||||||||||||
| Amortization of prior service credit | — | (13.5) | (13.5) | (1) | ||||||||||||||||||||||
| Settlement loss | 2.5 | 10.2 | 0.2 | (1) | ||||||||||||||||||||||
| 3.7 | (2.1) | (12.3) | ||||||||||||||||||||||||
| (0.8) | 0.4 | 2.6 | Income tax expense | |||||||||||||||||||||||
| $ | 2.9 | $ | (1.7) | $ | (9.7) | Net of tax | ||||||||||||||||||||
| Total reclassifications for the period | $ | 58.7 | $ | 48.6 | $ | 25.4 | Net of tax |
(1)These AOCI components are included in the computation of net periodic pension cost. See Note 23 for additional information.
22. Statutory Information
The Company’s insurance subsidiaries prepare financial statements in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by the insurance departments of their states of domicile. Prescribed SAP includes the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and administrative rules.
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The principal differences between SAP and GAAP are: (1) policy acquisition costs are expensed as incurred under SAP, but are deferred and amortized under GAAP; (2) VOBA is not capitalized under SAP but is under GAAP; (3) the classification and carrying amounts of investments in certain securities are different under SAP than under GAAP; (4) the criteria for providing asset valuation allowances, and the methodologies used to determine the amounts thereof, are different under SAP than under GAAP; (5) the timing of establishing certain reserves, and the methodologies used to determine the amounts thereof, are different under SAP than under GAAP; (6) certain assets are not admitted for purposes of determining surplus under SAP; (7) methodologies used to determine the amounts of deferred taxes, intangible assets and goodwill are different under SAP than under GAAP; and (8) the criteria for obtaining reinsurance accounting treatment is different under SAP than under GAAP, and SAP allows net presentation of insurance reserves and reinsurance recoverables.
The combined statutory net income, excluding intercompany dividends and surplus note interest, and capital and surplus of the Company’s U.S. domiciled statutory insurance subsidiaries is as follows:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Property and casualty companies | $ | 740.9 | $ | 546.0 | $ | 529.4 | |||||||||||
| Life and health companies | 14.9 | 22.2 | 13.7 | ||||||||||||||
| Total statutory net income | $ | 755.8 | $ | 568.2 | $ | 543.1 |
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Property and casualty companies | $ | 1,636.9 | $ | 1,642.8 | |||||||
| Life and health companies (1) | 89.0 | 85.5 | |||||||||
| Total statutory capital and surplus | $ | 1,725.9 | $ | 1,728.3 |
(1)Includes $10.9 million for a subsidiary that is held for sale as of December 31, 2025. See Note 3 for more information.
The Company also has non-insurance subsidiaries and foreign insurance subsidiaries that are not subject to SAP. The statutory net income and statutory capital and surplus amounts presented above do not include non-insurance subsidiaries and foreign insurance subsidiaries in accordance with SAP.
Insurance enterprises are required by state insurance departments to adhere to minimum risk-based capital (“RBC”) requirements developed by the NAIC. The Company’s insurance subsidiaries expect to exceed minimum RBC requirements as of December 31, 2025. In addition, all of our rated insurance subsidiaries currently maintain an A.M. Best financial strength rating of A.
The payment of dividends to the Company by any of the Company’s regulated U.S domiciled insurance subsidiaries in excess of a certain amount (i.e., extraordinary dividends) must be approved by the subsidiary’s domiciliary jurisdiction department of insurance. Ordinary dividends, for which no regulatory approval is generally required, are limited to amounts determined by a formula, which varies by jurisdiction. The formula for the majority of the jurisdictions in which the Company’s subsidiaries are domiciled is based on the prior year’s statutory net income or 10% of the statutory surplus as of the end of the prior year. Some jurisdictions limit ordinary dividends to the greater of these two amounts, others limit them to the lesser of these two amounts and some jurisdictions exclude prior year realized capital gains from prior year net income in determining ordinary dividend capacity. Some jurisdictions have an additional stipulation that dividends may only be paid out of earned surplus. If insurance regulators determine that payment of an ordinary dividend or any other payments by the Company’s insurance subsidiaries to the Company (such as payments under a tax sharing agreement or payments for employee or other services) would be adverse to policyholders or creditors, the regulators may block such payments that would otherwise be permitted without prior approval. Based on the dividend restrictions under applicable laws and regulations, the maximum amount of dividends that the Company’s U.S. domiciled insurance subsidiaries could pay to the Company in 2026 without regulatory approval is approximately $791.9 million. No assurance can be given that there will not be further regulatory actions restricting the ability of the Company’s insurance subsidiaries to pay dividends.
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23. Retirement and Other Employee Benefits
Defined Benefit Plans
The Company and its subsidiaries participate in a non-contributory, qualified defined benefit pension plan (“Assurant Pension Plan”) covering substantially all employees. The Assurant Pension Plan is considered “qualified” because it meets the requirements of IRC Section 401(a) (“IRC 401(a)”) and the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Assurant Pension Plan is a pension equity plan with a grandfathered final average earnings plan for a certain group of employees. Benefits are based on certain years of service and the employee’s compensation during certain such years of service. The Company’s funding policy is to contribute amounts to the Assurant Pension Plan sufficient to meet the minimum funding requirements in ERISA, plus such additional amounts as the Company may determine to be appropriate from time to time up to the maximum permitted. During the year ended December 31, 2025, there were no contributions to the Assurant Pension Plan and, due to the Assurant Pension Plan’s current funding status, no contributions are expected during the year ending December 31, 2026. Assurant Pension Plan assets are maintained in a separate trust. Assurant Pension Plan assets and benefit obligations are measured as of December 31, 2025.
The Company also has various non-contributory, non-qualified supplemental plans covering certain employees including the Assurant Executive Pension Plan and the Assurant Supplemental Executive Retirement Plan (the “SERP”). Since these plans are “non-qualified” they are not subject to the requirements of IRC 401(a) and ERISA. As such, the Company is not required, and does not, fund these plans. The qualified and non-qualified plans are referred to as “Pension Benefits” unless otherwise noted. The Company has the right to modify or terminate these benefits; however, the Company will not be relieved of its obligation to plan participants for their vested benefits.
Effective January 1, 2014, the Pension Benefits plans were closed to new hires. Effective March 1, 2016, the Pension Benefits, Retirement Health Benefits (defined below) and life benefits (together, the “Plans”) were amended such that no additional benefits will be earned after February 29, 2016.
In addition, until terminated effective December 31, 2024 (the “Termination Date”), the Company provided certain health care benefits for retired employees and their dependents (“Retirement Health Benefits”). Retirement Health Benefits were paid through the Termination Date. The Company will continue to provide certain life benefits for retired employees following termination of the Retirement Health Benefits (together, “Plan Benefits”).
The following table presents information on the Plans for the periods indicated:
| Pension Benefits | Plan Benefits | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Change in projected benefit obligation | |||||||||||||||||||||||
| Projected benefit obligation at beginning of year | $ | (544.1) | $ | (599.8) | $ | (0.9) | $ | (4.9) | |||||||||||||||
| Interest cost | (27.1) | (28.9) | — | (0.2) | |||||||||||||||||||
| Actuarial gain | (11.4) | 49.5 | — | (0.5) | |||||||||||||||||||
| Benefits paid | 42.2 | 35.1 | — | 4.7 | |||||||||||||||||||
| Projected benefit obligation at end of year | $ | (540.4) | $ | (544.1) | $ | (0.9) | $ | (0.9) | |||||||||||||||
| Change in plan assets | |||||||||||||||||||||||
| Fair value of plan assets at beginning of year | $ | 581.3 | $ | 636.7 | $ | — | $ | 26.0 | |||||||||||||||
| Actual return on plan assets | 47.4 | 11.2 | — | 0.3 | |||||||||||||||||||
| Employer contributions | 4.7 | 4.7 | — | 0.2 | |||||||||||||||||||
| Settlements | — | (34.3) | — | — | |||||||||||||||||||
| Benefits paid (including administrative expenses) | (43.5) | (37.0) | — | (4.7) | |||||||||||||||||||
| Net transfer in/(out) (including effect of any business combinations/divestitures) | — | — | — | (21.8) | |||||||||||||||||||
| Fair value of plan assets at end of year | $ | 589.9 | $ | 581.3 | $ | — | $ | — | |||||||||||||||
| Funded status at end of year | $ | 49.5 | $ | 37.2 | $ | (0.9) | $ | (0.9) |
In accordance with the guidance on retirement benefits, the Company aggregates the results of the qualified and non-qualified plans as “Pension Benefits” and is required to disclose the aggregate projected benefit obligation, accumulated benefit obligation and fair value of plan assets, if the obligations within those plans exceed plan assets.
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As of December 31, 2025 and 2024, the fair value of plan assets, projected benefit obligation, funded status at end of year and the accumulated benefit obligation of Pension Benefits were as follows:
| Qualified Pension Benefits | Unfunded Nonqualified Pension Benefits | Total Pension Benefits | |||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||
| Fair value of plan assets | $ | 589.9 | $ | 581.3 | $ | — | $ | — | $ | 589.9 | $ | 581.3 | |||||||||||||||||||||||
| Projected benefit obligation | (493.8) | (497.2) | (46.6) | (46.9) | (540.4) | (544.1) | |||||||||||||||||||||||||||||
| Funded status at end of year | $ | 96.1 | $ | 84.1 | $ | (46.6) | $ | (46.9) | $ | 49.5 | $ | 37.2 | |||||||||||||||||||||||
| Accumulated benefit obligation | $ | 493.8 | $ | 497.2 | $ | 46.6 | $ | 46.9 | $ | 540.4 | $ | 544.1 |
Amounts recognized in the consolidated balance sheets consist of:
| Pension Benefits | Plan Benefits | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Assets | $ | 96.1 | $ | 84.1 | $ | — | $ | — | |||||||||||||||
| Liabilities | $ | (46.6) | $ | (46.9) | $ | (0.9) | $ | (0.9) |
Amounts recognized in AOCI consist of:
| Pension Benefits | Plan Benefits | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Net (loss) gain | $ | (165.3) | $ | (162.7) | $ | (158.5) | $ | (0.8) | $ | (3.3) | $ | (1.8) | |||||||||||||||||||||||
| Prior service (cost) credit | (0.3) | (0.3) | (0.3) | — | — | 13.4 | |||||||||||||||||||||||||||||
| $ | (165.6) | $ | (163.0) | $ | (158.8) | $ | (0.8) | $ | (3.3) | $ | 11.6 |
Components of net periodic benefit cost, recorded in underwriting, selling, general and administrative expenses in the consolidated statements of operations, and other amounts recognized in AOCI for the years ended December 31, 2025, 2024, and 2023 were as follows:
| Pension Benefits | Plan Benefits | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| Net periodic benefit cost | |||||||||||||||||||||||||||||||||||
| Interest cost | $ | 27.1 | $ | 28.9 | $ | 30.5 | $ | — | $ | 0.2 | $ | 0.4 | |||||||||||||||||||||||
| Expected return on plan assets | (38.4) | (40.1) | (40.9) | — | (1.3) | (1.5) | |||||||||||||||||||||||||||||
| Amortization of prior service credit (cost) | — | — | — | — | (13.6) | (13.6) | |||||||||||||||||||||||||||||
| Amortization of net loss (gain) | 1.2 | 1.2 | 1.0 | — | — | — | |||||||||||||||||||||||||||||
| Curtailment/settlement loss | — | 10.2 | 0.2 | 2.5 | — | — | |||||||||||||||||||||||||||||
| Net periodic benefit cost | $ | (10.1) | $ | 0.2 | $ | (9.2) | $ | 2.5 | $ | (14.7) | $ | (14.7) | |||||||||||||||||||||||
| Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive income | |||||||||||||||||||||||||||||||||||
| Net (gain) loss | 3.7 | 15.5 | 22.2 | — | 1.5 | (0.2) | |||||||||||||||||||||||||||||
| Amortization of prior service (cost) credit | — | — | — | — | 13.6 | 13.6 | |||||||||||||||||||||||||||||
| Amortization of net (loss) gain | (1.2) | (11.3) | (1.2) | (2.5) | — | — | |||||||||||||||||||||||||||||
| Total recognized in accumulated other comprehensive (loss) income | $ | 2.5 | $ | 4.2 | $ | 21.0 | $ | (2.5) | $ | 15.1 | $ | 13.4 | |||||||||||||||||||||||
| Total recognized in net periodic benefit cost and other comprehensive (loss) income | $ | (7.6) | $ | 4.4 | $ | 11.8 | $ | — | $ | 0.4 | $ | (1.3) |
The Company uses a five-year averaging method to determine the market-related value of Pension Benefits plan assets, which is used to calculate the expected return of plan assets component of the Plans’ expense. Under this methodology, asset gains/losses that result from actual returns which differ from the Company’s expected long-term rate of return on assets
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assumption are recognized in the market-related value of assets on a level basis over a five-year period. The difference between actual as compared to expected asset returns for the Plans will be fully reflected in the market-related value of plan assets over the next five years using the methodology described above. Other post-employment benefit assets under the Plan Benefits were valued at fair value.
Determination of the projected benefit obligation was based on the following weighted-average assumptions for the years ended December 31, 2025, 2024 and 2023:
| Qualified Pension Benefits | Unfunded Nonqualified Pension Benefits | Plan Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||
| Discount rate | 5.32 | % | 5.60 | % | 5.14 | % | 5.11 | % | 5.51 | % | 5.11 | % | 5.54 | % | 5.69 | % | 5.63 | % |
Determination of the net periodic benefit cost was based on the following weighted-average assumptions for the years ended December 31, 2025, 2024 and 2023:
| Qualified Pension Benefits | Unfunded Nonqualified Pension Benefits | Plan Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||
| Discount rates: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Effective discount rate for benefit obligations | 5.60 | % | 5.14 | % | 5.42 | % | 5.51 | % | 5.11 | % | 5.42 | % | 5.69 | % | 5.24 | % | 5.36 | % | |||||||||||||||||||||||||||||||||||
| Effective rate for interest on benefit obligations | 5.29 | % | 5.07 | % | 5.34 | % | 5.22 | % | 5.04 | % | 5.33 | % | 5.40 | % | 5.86 | % | 5.37 | % | |||||||||||||||||||||||||||||||||||
| Expected long-term return on plan assets | 5.95 | % | 5.70 | % | 5.70 | % | — | % | — | % | — | % | — | % | 5.70 | % | 5.70 | % |
The selection of the Company’s discount rate assumption reflects the rate at which the Plans’ obligations could be effectively settled at December 31, 2025, 2024 and 2023. The methodology for selecting the discount rate was to match each Plan’s cash flows to that of a yield curve that provides the equivalent yields on zero-coupon corporate bonds for each maturity. The yield curve utilized in the cash flow analysis was comprised of 383 bonds rated AA by either Moody’s or S&P’s with maturities between zero and 30 years. The discount rate for each Plan is the single rate that produces the same present value of cash flows. The Company utilizes a split rate approach for purposes of determining the benefit obligations and service cost as well as a spot rate approach for the calculation of interest on these items in the determination of the net periodic benefit cost.
To develop the expected long-term rate of return on assets assumption, the Company considered the current level of expected returns on risk free investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected long-term rate of return on Plan assets reflects the average rate of earnings expected on the funds invested or to be invested. The expected return for each asset class was then weighted based on the targeted asset allocation to develop the expected long-term rate of return on asset assumptions for the portfolio. The Company believes the current assumption reflects the projected return on the invested assets, given the current market conditions and the modified portfolio structure. Actual return (loss) on Plan assets was 8.1%, 1.7% and 5.6% for the years ended December 31, 2025, 2024 and 2023 respectively.
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The assumed health care cost trend rates used in measuring the accumulated postretirement benefit obligation and net periodic benefit cost were as follows:
| Retirement Health Benefits | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Health care cost trend rate assumed for next year (1): | |||||||||||||||||
| Pre-65 Non-reimbursement Plan | N/A | N/A | 5.6% | ||||||||||||||
| Post-65 Non-reimbursement Plan (Medical) | N/A | N/A | 4.0% | ||||||||||||||
| Post-65 Non-reimbursement Plan (Rx) | N/A | N/A | 7.0% | ||||||||||||||
| Pre-65 Reimbursement Plan | N/A | N/A | 5.5% | ||||||||||||||
| Post-65 Reimbursement Plan | N/A | N/A | 5.5% | ||||||||||||||
| Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (1) | N/A | N/A | 4.0% | ||||||||||||||
| Year that the rate reaches the ultimate trend rate (1) | |||||||||||||||||
| Pre-65 Non-reimbursement Plan | N/A | N/A | 2045 | ||||||||||||||
| Post-65 Non-reimbursement Plan (Medical & Rx) | N/A | N/A | 2045 | ||||||||||||||
| Pre-65 Reimbursement Plan | N/A | N/A | 2045 | ||||||||||||||
| Post-65 Reimbursement Plan | N/A | N/A | 2045 |
(1)The Retirement Health Benefits Plan terminated effective December 31, 2024. Since the plan has terminated, there are no costs to bring forward to the following year so none of the trend rates are applicable for 2025 and 2024.
The assets of the Plans are managed to maximize their long-term pre-tax investment return, subject to the following dual constraints: minimization of required contributions and maintenance of solvency requirements. It is anticipated that periodic contributions to the Plans will, for the foreseeable future, be sufficient to meet benefit payments thus allowing the balance to be managed according to a long-term approach. The Benefit Plans Investment Committee (“BPIC”) for the Plans meets on a quarterly basis and reviews the re-balancing of existing fund assets and the asset allocation of new fund contributions.
The goal of the Company’s asset strategy is to ensure that the growth in the value of the Plans’ assets over the long-term, both in real and nominal terms, manages (controls) risk exposure. Risk is managed by investing in a broad range of asset classes, and within those asset classes, a broad range of individual securities. Diversification by asset classes stabilizes total results over short-term time periods. Each asset class is externally managed by outside investment managers appointed by the BPIC. Derivatives may be used consistent with the Plans’ investment objectives established by the BPIC. All securities must be U.S. Dollar denominated.
The BPIC oversees the investment of the Plans’ assets and periodically reviews the investment strategies, strategic asset allocation, liabilities and portfolio structure of the assets. After a 2017 review and considering the funded status of the Assurant Pension Plan, the BPIC transitioned plan assets to a new target asset allocation consisting of 80% fixed income, 10% real estate, 5% hedge funds and 5% equities.
The assets of the Plans are primarily invested in fixed maturity securities. Interest rate risk is hedged by aligning the duration of the fixed maturity securities with the duration of the liabilities. Specifically, interest rate swaps can be used if needed to synthetically extend the duration of fixed maturity securities to match the duration of the liabilities, as measured on a projected benefit obligation basis. In addition, the Plans’ fixed income securities have exposure to credit risk. In order to adequately diversify and limit exposure to credit risk, the BPIC established parameters which include a limit on the asset types that managers are permitted to purchase, maximum exposure limits by sector and by individual issuer (based on asset quality) and minimum required ratings on individual securities. As of December 31, 2025, 85% of plan assets were invested in fixed maturity securities and 19%, 17% and 10% of those securities were concentrated in the energy and power, finance and real estate, and communication industries, respectively, with no exposure to any single creditor in excess of 4%, 5% and 12% of those industries, respectively. As of December 31, 2025, 5% of plan assets were invested in equity securities and 100% of the Plans’ equity securities were invested in a mutual fund that attempts to replicate the return of the S&P 500 Index by investing its assets in large capitalization stocks that are included in the S&P 500 Index using a weighting similar to the S&P 500 Index. The remainder of the assets are invested in real estate and other alternative assets.
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The fair value hierarchy for the Company’s qualified pension plan assets at December 31, 2025 by asset category is as follows:
| Qualified Pension Benefits | December 31, 2025 | ||||||||||||||||
| Financial Assets | Total | Level 1 | Level 2 | ||||||||||||||
| Cash equivalents: | |||||||||||||||||
| Short-term investment funds | $ | 7.6 | $ | — | $ | 7.6 | |||||||||||
| Equity securities: | |||||||||||||||||
| Mutual funds - U.S. listed large cap | 29.6 | 29.6 | — | ||||||||||||||
| Fixed maturity securities: | |||||||||||||||||
| U.S. & foreign government and government agencies and authorities | 138.2 | — | 138.2 | ||||||||||||||
| Corporate - U.S. & foreign investment grade | 329.2 | — | 329.2 | ||||||||||||||
| Corporate - U.S. & foreign high yield | 6.9 | — | 6.9 | ||||||||||||||
| Mutual funds - U.S. investment grade | 29.9 | 29.9 | — | ||||||||||||||
| Other investments measured at net asset value (1) | 90.9 | — | — | ||||||||||||||
| Total financial assets (2) | $ | 632.3 | $ | 59.5 | $ | 481.9 |
(1)In accordance with fair value measurements and disclosures guidance, certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The net asset values of $36.0 million, $4.6 million and $50.3 million as of December 31, 2025 are used as a practical expedient to fair value of the multi-strategy hedge fund, private equity fund and real estate fund, respectively.
(2)The difference between the fair value of Plan assets above and the amount used in determining the funded status is due to interest receivable and net receivable/payable for unsettled trades, which is not required to be included in the fair value hierarchy.
The fair value hierarchy for the Company’s qualified pension plan assets at December 31, 2024 by asset category is as follows:
| Qualified Pension Benefits | December 31, 2024 | ||||||||||||||||
| Financial Assets | Total | Level 1 | Level 2 | ||||||||||||||
| Cash and cash equivalents: | |||||||||||||||||
| Short-term investment funds | $ | 7.8 | $ | — | $ | 7.8 | |||||||||||
| Equity securities: | |||||||||||||||||
| Mutual funds - U.S. listed large cap | 29.2 | 29.2 | — | ||||||||||||||
| Fixed maturity securities: | |||||||||||||||||
| U.S. & foreign government and government agencies and authorities | 144.0 | — | 144.0 | ||||||||||||||
| Corporate - U.S. & foreign investment grade | 334.7 | — | 334.7 | ||||||||||||||
| Corporate - U.S. & foreign high yield | 10.9 | — | 10.9 | ||||||||||||||
| Mutual funds - U.S. investment grade | 14.4 | 14.4 | — | ||||||||||||||
| Other investments measured at net asset value (1) | 106.6 | — | — | ||||||||||||||
| Total financial assets (2) | $ | 647.6 | $ | 43.6 | $ | 497.4 |
(1)In accordance with fair value measurements and disclosures guidance, certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The net asset values of $46.9 million, $4.7 million and $55.0 million as of December 31, 2024 are used as a practical expedient to fair value of the multi-strategy hedge fund, private equity fund and real estate fund, respectively.
(2)The difference between the fair value of Plan assets above and the amount used in determining the funded status is due to interest receivable and net receivable/payable for unsettled trades, which is not required to be included in the fair value hierarchy.
Level 1 and Level 2 securities are valued using various observable market inputs obtained from a pricing service. The pricing service prepares estimates of fair value measurements for the Company’s Level 2 securities using proprietary valuation models based on techniques such as matrix pricing which include observable market inputs. Observable market inputs for Level 1 and Level 2 securities are consistent with the observable market inputs described in Note 9.
The Company obtains one price for each investment. A quarterly analysis is performed to assess if the evaluated prices represent a reasonable estimate of their fair value. This process involves quantitative and qualitative analysis and is overseen by benefits, investment and accounting professionals. Examples of procedures performed include initial and on-going review of pricing service methodologies, review of pricing statistics and trends, and comparison of prices for certain securities with two different appropriate price sources for reasonableness. Following this analysis, the Company uses the best estimate of fair value
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based upon all available inputs. The pricing service provides information regarding their pricing procedures so that the Company can properly categorize the Plans’ financial assets in the fair value hierarchy.
The following pension benefits are expected to be paid over the next ten-year period:
| Pension Benefits | Plan Benefits | ||||||||||
| 2026 | $ | 50.6 | $ | 0.1 | |||||||
| 2027 | 48.7 | 0.1 | |||||||||
| 2028 | 48.7 | 0.1 | |||||||||
| 2029 | 48.5 | — | |||||||||
| 2030 | 48.2 | — | |||||||||
| 2031 - 2035 | 210.0 | 0.3 | |||||||||
| Total | $ | 454.7 | $ | 0.6 |
Defined Contribution Plan
The Company and its subsidiaries participate in a defined contribution plan covering substantially all employees. The defined contribution plan provides benefits payable to participants at retirement or upon disability and to beneficiaries of participants in the event of the participant’s death. The amounts expensed by the Company related to this plan were $45.4 million, $43.5 million and $44.1 million for the years ended December 31, 2025, 2024 and 2023, respectively.
24. Earnings Per Common Share
The following table presents net income, the weighted average common shares used in calculating basic EPS and those used in calculating diluted EPS for each period presented below. Diluted EPS reflects the incremental common shares from common shares issuable upon vesting of PSUs and ESPP using the treasury stock method. Refer to Notes 19 and 20 for further information regarding potential common stock issuances. The outstanding RSUs have non-forfeitable rights to dividend equivalents and are therefore included in calculating basic and diluted EPS under the two-class method.
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator | |||||||||||||||||
| Net income | $ | 872.7 | $ | 760.2 | $ | 642.5 | |||||||||||
| Less: Earnings allocated to participating securities | (7.7) | (7.7) | (7.0) | ||||||||||||||
| Net income used in basic and diluted per common share calculations | $ | 865.0 | $ | 752.5 | $ | 635.5 | |||||||||||
| Denominator | |||||||||||||||||
| Weighted average common shares outstanding used in basic per common share calculations | 50,469,633 | 51,703,588 | 52,870,380 | ||||||||||||||
| Incremental common shares from: | |||||||||||||||||
| PSUs | 593,853 | 324,484 | 294,808 | ||||||||||||||
| ESPP | 23,163 | 24,889 | 33,122 | ||||||||||||||
| Weighted average common shares outstanding used in diluted per common share calculations | 51,086,649 | 52,052,961 | 53,198,310 | ||||||||||||||
| Earnings per common share – Basic | $ | 17.14 | $ | 14.55 | $ | 12.02 | |||||||||||
| Earnings per common share – Diluted | $ | 16.93 | $ | 14.46 | $ | 11.95 | |||||||||||
There were no anti-dilutive PSUs for the year ended December 31, 2025. Average PSUs totaling 48,859 and 56,456 for the years ended 2024 and 2023, respectively, were outstanding but were anti-dilutive and thus not included in the computation of diluted EPS under the treasury stock method.
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25. Restructuring and Related Impairment Charges
In December 2025, the Company finalized a new restructuring plan (the “2025 Plan”) to optimize operational efficiencies and reduce its global footprint. Total costs of $28.7 million were incurred for the year ended December 31, 2025 related to the 2025 Plan, and no additional costs are expected to be incurred for this plan.
In December 2022, the Company finalized a restructuring plan (the “2022 Plan”) to realize greater efficiencies by continuing to simplify its business portfolio and leverage its global footprint to reduce costs. In September 2023, the Company amended and extended the 2022 Plan to include additional actions within the initiatives described above, including further consolidation of its real estate portfolio and additional changes to its organizational structure. These actions were completed in 2025, with some remaining payments scheduled into 2027.
The following table summarizes the costs by major type for both the 2025 Plan and 2022 Plan that are recorded in underwriting, selling, general and administrative expenses in the consolidated statement of operations for the years ended December 31, 2025, 2024 and 2023. Substantially all of the charges are expected to be cash. Restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities) are not allocated to a reportable segment.
| Costs incurred for the year ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Severance and other employee benefits | $ | 23.5 | $ | 4.5 | $ | 21.0 | |||||||||||||||||||||||||||||
| Contract exit costs | 2.3 | 0.9 | 6.5 | ||||||||||||||||||||||||||||||||
| Fixed asset impairment | 0.1 | — | 1.2 | ||||||||||||||||||||||||||||||||
| Right-of-use asset impairment | 1.4 | — | 5.6 | ||||||||||||||||||||||||||||||||
| Total restructuring and impairment charges | $ | 27.3 | $ | 5.4 | $ | 34.3 |
The following table shows the rollforward of the accrued liability by major type.
| Severance and Other Employee Benefits | Contract Exit Costs | ||||||||||
| Balance at December 31, 2023 | $ | 27.8 | $ | 17.1 | |||||||
| Charges incurred | 5.5 | 1.1 | |||||||||
| Cash payments | (18.9) | (6.8) | |||||||||
| Non-cash adjustment (1) | (1.0) | (0.2) | |||||||||
| Balance at December 31, 2024 | 13.4 | 11.2 | |||||||||
| Charges incurred | 29.3 | 5.9 | |||||||||
| Cash payments | (4.9) | (6.3) | |||||||||
| Non-cash adjustment (1) | (5.8) | (3.6) | |||||||||
| Balance at December 31, 2025 | $ | 32.0 | $ | 7.2 |
(1)Represents changes to previously estimated charges.
26. Commitments and Contingencies
Leases
The Company and its subsidiaries lease office space and equipment under operating lease arrangements. Certain facility leases contain escalation clauses based on increases in the lessors’ operating expenses.
As of December 31, 2025 and 2024, the lease liability was $73.9 million and $62.4 million, respectively, included in accounts payable and other liabilities in the consolidated balance sheets. As of December 31, 2025 and 2024, the right-of-use asset was $59.2 million and $54.1 million, respectively, included in other assets in the consolidated balance sheets. For the years ended December 31, 2025, 2024 and 2023 the operating lease cost recognized for leases with terms in excess of 12 months was $19.0 million, $23.2 million and $19.0 million respectively, and related cash outflows reducing the lease liability were $20.3 million, $23.4 million and $19.4 million, respectively. As of December 31, 2025, the weighted average remaining lease term and discount rate was 5.7 years and 5.5%, respectively. As of December 31, 2024, the weighted average remaining lease term and discount rate was 5.2 years and 5.6%, respectively. For the years ended December 31, 2025, 2024 and 2023 the short-term lease cost recognized for leases with terms of 12 months or less was $3.3 million, $1.1 million and $1.1 million, respectively.
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At December 31, 2025, the lease liability by maturity is as follows:
| 2026 | $ | 20.3 | |||
| 2027 | 16.7 | ||||
| 2028 | 13.3 | ||||
| 2029 | 11.7 | ||||
| 2030 | 8.8 | ||||
| Thereafter | 16.3 | ||||
| Total future lease payments | 87.1 | ||||
| Less: Imputed interest | (13.2) | ||||
| Total lease liability | $ | 73.9 |
Letters of Credit
In the normal course of business, letters of credit are issued for various purposes. These letters of credit are supported by commitments under which the Company is required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. The Company had $1.7 million and $1.8 million of letters of credit outstanding as of December 31, 2025 and 2024, respectively.
Legal and Regulatory Matters
The Company is involved in a variety of litigation and legal and regulatory proceedings relating to its current and past business operations and, from time to time, it may become involved in other such actions. The Company continues to defend itself vigorously in these proceedings. The Company has participated and may participate in settlements on terms that the Company considers reasonable.
The Company has established an accrued liability for certain legal and regulatory proceedings. The possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and uncertain. Consequently, no reasonable estimate can be made of any possible loss or range of loss in excess of the accrual. Although the Company cannot predict the outcome of any pending legal or regulatory proceeding, or the potential losses, fines, penalties or equitable relief, if any, that may result, it is possible that such outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, on the basis of currently available information, management does not believe that the pending matters are likely to have a material adverse effect, individually or in the aggregate, on the Company’s financial condition.
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Assurant, Inc.
Schedule I – Summary of Investments - Other Than Investments in Related Parties
| December 31, 2025 | |||||||||||||||||
| Cost or Amortized Cost | Fair Value | Amount at which shown in balance sheet | |||||||||||||||
| (in millions) | |||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||
| U.S. government and government agencies and authorities | $ | 62.7 | $ | 62.9 | $ | 62.9 | |||||||||||
| States, municipalities and political subdivisions | 100.0 | 96.1 | 96.1 | ||||||||||||||
| Foreign governments | 596.1 | 593.9 | 593.9 | ||||||||||||||
| Asset-backed | 850.2 | 845.7 | 845.7 | ||||||||||||||
| Commercial mortgage-backed | 431.4 | 417.4 | 417.4 | ||||||||||||||
| Residential mortgage-backed | 978.6 | 954.7 | 954.7 | ||||||||||||||
| U.S. corporate | 3,895.5 | 3,877.6 | 3,877.6 | ||||||||||||||
| Foreign corporate | 1,720.8 | 1,729.4 | 1,729.4 | ||||||||||||||
| Total fixed maturity securities | 8,635.3 | 8,577.7 | 8,577.7 | ||||||||||||||
| Equity securities: | |||||||||||||||||
| Common stocks | 17.0 | 2.0 | 2.0 | ||||||||||||||
| Non-redeemable preferred stocks | 169.5 | 167.8 | 167.8 | ||||||||||||||
| Mutual funds | 36.0 | 37.3 | 37.3 | ||||||||||||||
| Total equity securities | 222.5 | 207.1 | 207.1 | ||||||||||||||
| Commercial mortgage loans on real estate | 324.7 | 324.7 | |||||||||||||||
| Short-term investments | 379.5 | 379.5 | |||||||||||||||
| Other investments | 573.0 | 573.0 | |||||||||||||||
| Total investments | $ | 10,135.0 | $ | 10,062.0 |
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Assurant, Inc.
Schedule II – Condensed Balance Sheet (Parent Only)
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions, except number of shares) | |||||||||||
| Assets | |||||||||||
| Investments: | |||||||||||
| Equity investment in subsidiaries | $ | 6,555.3 | $ | 6,109.1 | |||||||
| Fixed maturity securities available for sale, at fair value (amortized cost – $696.5 and $485.7 at December 31, 2025 and 2024, respectively) | 701.0 | 482.7 | |||||||||
| Short-term investments | 49.1 | 24.7 | |||||||||
| Other investments | 98.8 | 87.7 | |||||||||
| Total investments | 7,404.2 | 6,704.2 | |||||||||
| Cash and cash equivalents | 136.6 | 164.9 | |||||||||
| Receivable from subsidiaries, net | 157.5 | 42.9 | |||||||||
| Income tax receivable | 178.3 | 193.5 | |||||||||
| Accrued investment income | 6.7 | 4.1 | |||||||||
| Property and equipment, at cost less accumulated depreciation | 451.4 | 332.4 | |||||||||
| Other assets | 114.6 | 120.5 | |||||||||
| Total assets | $ | 8,449.3 | $ | 7,562.5 | |||||||
| Liabilities | |||||||||||
| Accounts payable and other liabilities | $ | 370.8 | $ | 372.7 | |||||||
| Debt | 2,206.9 | 2,083.1 | |||||||||
| Total liabilities | 2,577.7 | 2,455.8 | |||||||||
| Stockholders’ equity | |||||||||||
| Common stock, par value $0.01 per share, 800,000,000 shares authorized, 52,089,008 and 53,129,838 shares issued and 49,792,919 and 50,833,749 shares outstanding at December 31, 2025 and 2024, respectively | 0.5 | 0.5 | |||||||||
| Additional paid-in capital | 1,711.8 | 1,686.8 | |||||||||
| Retained earnings | 4,826.3 | 4,378.3 | |||||||||
| Accumulated other comprehensive loss | (544.2) | (836.1) | |||||||||
| Treasury stock, at cost; 2,296,089 shares at December 31, 2025 and 2024 | (122.8) | (122.8) | |||||||||
| Total stockholders’ equity | 5,871.6 | 5,106.7 | |||||||||
| Total liabilities and stockholders’ equity | $ | 8,449.3 | $ | 7,562.5 |
See the accompanying Notes to the Parent Only Condensed Financial Statements
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Assurant, Inc.
Schedule II – Condensed Income Statement (Parent Only)
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Revenues | |||||||||||||||||
| Net investment income | $ | 20.7 | $ | 28.8 | $ | 21.0 | |||||||||||
| Net realized gains (losses) on investments and fair value changes to equity securities | 0.7 | 1.2 | (9.8) | ||||||||||||||
| Fees and other income | 354.7 | 332.2 | 318.8 | ||||||||||||||
| Equity in net income of subsidiaries | 998.5 | 908.8 | 786.3 | ||||||||||||||
| Total revenues | 1,374.6 | 1,271.0 | 1,116.3 | ||||||||||||||
| Expenses | |||||||||||||||||
| General and administrative expenses | 452.3 | 480.5 | 419.0 | ||||||||||||||
| Interest expense | 109.7 | 107.0 | 108.0 | ||||||||||||||
| Loss (gain) on extinguishment of debt (Note 18 to the Consolidated Financial Statements) | 1.3 | — | (0.1) | ||||||||||||||
| Total expenses | 563.3 | 587.5 | 526.9 | ||||||||||||||
| Income before benefit for income taxes | 811.3 | 683.5 | 589.4 | ||||||||||||||
| Benefit for income taxes | (61.4) | (76.7) | (53.1) | ||||||||||||||
| Net income | $ | 872.7 | $ | 760.2 | $ | 642.5 | |||||||||||
See the accompanying Notes to the Parent Only Condensed Financial Statements
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Assurant, Inc.
Schedule II – Condensed Statements of Comprehensive Income (Parent Only)
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Net income | $ | 872.7 | $ | 760.2 | $ | 642.5 | |||||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Change in unrealized gains on securities, net of taxes of $(2.5), $(0.1) and $(3.4) for the years ended December 31, 2025, 2024 and 2023, respectively | 4.9 | 0.5 | 29.0 | ||||||||||||||
| Change in unrealized gains on derivative transactions, net of taxes of $0.1, $1.7 and $0.3 for the years ended December 31, 2025, 2024 and 2023, respectively | (0.4) | (6.3) | (1.3) | ||||||||||||||
| Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, net of taxes of $0.1, $4.0 and $7.2 for the years ended December 31, 2025, 2024 and 2023, respectively | (0.2) | (15.2) | (27.1) | ||||||||||||||
| Change in subsidiary other comprehensive income | 287.6 | (50.1) | 220.6 | ||||||||||||||
| Total other comprehensive income (loss) | 291.9 | (71.1) | 221.2 | ||||||||||||||
| Total comprehensive income attributable to stockholders | $ | 1,164.6 | $ | 689.1 | $ | 863.7 |
See the accompanying Notes to the Parent Only Condensed Financial Statements
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Assurant, Inc.
Schedule II – Condensed Cash Flows (Parent Only)
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Operating Activities | |||||||||||||||||
| Net cash provided by operating activities | $ | 396.2 | $ | 447.9 | $ | 345.1 | |||||||||||
| Investing Activities | |||||||||||||||||
| Sales of: | |||||||||||||||||
| Fixed maturity securities available for sale | 66.1 | 278.9 | 183.4 | ||||||||||||||
| Equity securities | — | 1.7 | — | ||||||||||||||
| Other invested assets | — | — | 8.0 | ||||||||||||||
| Property, buildings and equipment | — | — | 1.0 | ||||||||||||||
| Maturities, calls, prepayments, and scheduled redemption of: | |||||||||||||||||
| Fixed maturity securities available for sale | 120.9 | 87.5 | 172.2 | ||||||||||||||
| Purchases of: | |||||||||||||||||
| Fixed maturity securities available for sale | (6.1) | (18.0) | (155.4) | ||||||||||||||
| Other invested assets | — | (0.7) | — | ||||||||||||||
| Property and equipment and other | (183.5) | (165.3) | (175.1) | ||||||||||||||
| Capital contributed to subsidiaries | (59.9) | (87.8) | (8.9) | ||||||||||||||
| Return of capital contributions from subsidiaries | 22.5 | — | 7.1 | ||||||||||||||
| Change in short-term investments | (20.3) | (8.0) | 3.4 | ||||||||||||||
| Net cash (used in) provided by investing activities | (60.3) | 88.3 | 35.7 | ||||||||||||||
| Financing Activities | |||||||||||||||||
| Issuance of debt, net of issuance costs (Note 18 to the Consolidated Financial Statements) | 298.0 | — | 173.2 | ||||||||||||||
| Repayment of debt (Note 18) | (176.3) | — | (225.0) | ||||||||||||||
| Acquisition of common stock | (303.7) | (307.4) | (193.1) | ||||||||||||||
| Common stock dividends paid | (168.4) | (155.9) | (152.3) | ||||||||||||||
| Employee stock purchases and withholdings | (13.8) | (14.2) | (4.2) | ||||||||||||||
| Net cash used in financing activities | (364.2) | (477.5) | (401.4) | ||||||||||||||
| Change in cash and cash equivalents | (28.3) | 58.7 | (20.6) | ||||||||||||||
| Cash and cash equivalents at beginning of period | 164.9 | 106.2 | 126.8 | ||||||||||||||
| Cash and cash equivalents at end of period | $ | 136.6 | $ | 164.9 | $ | 106.2 | |||||||||||
See the accompanying Notes to the Parent Only Condensed Financial Statements
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Assurant, Inc.
Notes to the Parent Only Condensed Financial Statements
Assurant, Inc.’s (the “Registrant”) investments in consolidated subsidiaries are stated at cost plus equity in income of consolidated subsidiaries. The accompanying Parent Only Condensed Financial Statements of the Registrant should be read in conjunction with the Consolidated Financial Statements and Notes thereto of the registrant and its subsidiaries included in the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission on February 19, 2026.
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Assurant, Inc.
Schedule III – Supplementary Insurance Information
| Segment | Deferred Acquisition Costs | Future Policy Benefits and Expenses | Unearned Premiums | Claims and Benefits Payable | Premium Revenue | Net Investment Income | Benefits, Claims, Losses and Settlement Expenses | Amortization of Deferred Acquisition Costs | Other Operating Expenses (1) | Property and Casualty Premiums Written | |||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Global Lifestyle | $ | 10,025.3 | $ | 7.3 | $ | 18,929.1 | $ | 873.7 | $ | 7,892.8 | $ | 357.5 | $ | 1,901.7 | $ | 3,837.2 | $ | 3,399.8 | $ | 908.8 | |||||||||||||||||||||||||||||||||||||||
| Global Housing | 159.8 | — | 1,944.7 | 1,138.9 | 2,584.4 | 141.8 | 1,018.4 | 260.8 | 772.7 | 2,691.9 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other | 2.5 | 48.4 | 7.6 | 88.6 | — | 23.9 | — | — | 149.4 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other Reconciling Items (2) | — | — | — | — | 5.7 | 4.1 | 7.7 | — | 268.2 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 10,187.6 | $ | 55.7 | $ | 20,881.4 | $ | 2,101.2 | $ | 10,482.9 | $ | 527.3 | $ | 2,927.8 | $ | 4,098.0 | $ | 4,590.1 | $ | 3,600.7 | |||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Global Lifestyle | $ | 9,853.7 | $ | 7.8 | $ | 18,387.4 | $ | 873.9 | $ | 7,506.0 | $ | 356.6 | $ | 1,738.6 | $ | 3,736.6 | $ | 3,075.3 | $ | 830.8 | |||||||||||||||||||||||||||||||||||||||
| Global Housing | 136.0 | — | 1,813.6 | 1,885.3 | 2,281.0 | 127.3 | 1,010.2 | 229.0 | 673.9 | 2,493.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other | 3.1 | 528.9 | 10.4 | 155.0 | — | 27.2 | — | — | 149.8 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other Reconciling Items (2) | — | — | — | — | 8.8 | 7.8 | 17.7 | — | 212.1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 9,992.8 | $ | 536.7 | $ | 20,211.4 | $ | 2,914.2 | $ | 9,795.8 | $ | 518.9 | $ | 2,766.5 | $ | 3,965.6 | $ | 4,111.1 | $ | 3,324.2 | |||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Global Lifestyle | $ | 9,853.1 | $ | 8.6 | $ | 18,550.5 | $ | 770.0 | $ | 7,362.6 | $ | 347.5 | $ | 1,607.9 | $ | 3,916.2 | $ | 2,592.5 | $ | 848.3 | |||||||||||||||||||||||||||||||||||||||
| Global Housing | 111.4 | — | 1,554.9 | 989.9 | 2,014.5 | 109.7 | 862.0 | 203.5 | 612.9 | 2,075.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Corporate and Other | 2.7 | 478.6 | 5.0 | 229.3 | — | 21.4 | 0.1 | — | 130.5 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Other Reconciling Items (2) | — | — | — | — | 10.9 | 10.5 | 51.8 | — | 239.5 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 9,967.2 | $ | 487.2 | $ | 20,110.4 | $ | 1,989.2 | $ | 9,388.0 | $ | 489.1 | $ | 2,521.8 | $ | 4,119.7 | $ | 3,575.4 | $ | 2,923.7 |
(1)Includes amortization of value of business acquired and underwriting, general and administrative expenses.
(2)Other reconciling items reflect the items excluded from the segment measure of profitability, Adjusted EBITDA. See Note 5 for more information on Adjusted EBITDA and the reconciliation of the segment Adjusted EBITDA to the consolidated net income.
F-78
Assurant, Inc.
Schedule IV – Reinsurance
| Direct Amount | Ceded to Other Companies | Assumed from Other Companies | Net Amount | Percentage of Amount Assumed to Net | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Life Insurance in Force | $ | 7,332.5 | $ | 4,608.9 | $ | — | $ | 2,723.6 | — | % | |||||||||||||||||||
| Premiums: | |||||||||||||||||||||||||||||
| Life insurance | $ | 195.6 | $ | 160.1 | $ | — | $ | 35.5 | — | % | |||||||||||||||||||
| Accident and health insurance | 341.0 | 230.4 | 2.3 | 112.9 | 2.0 | % | |||||||||||||||||||||||
| Property and liability insurance | 18,855.5 | 8,926.9 | 405.9 | 10,334.5 | 3.9 | % | |||||||||||||||||||||||
| Total earned premiums | $ | 19,392.1 | $ | 9,317.4 | $ | 408.2 | $ | 10,482.9 | 3.9 | % | |||||||||||||||||||
| Benefits: | |||||||||||||||||||||||||||||
| Life insurance | $ | 34.4 | $ | 24.2 | $ | — | $ | 10.2 | — | % | |||||||||||||||||||
| Accident and health insurance | 52.9 | 42.0 | 0.2 | 11.1 | 1.8 | % | |||||||||||||||||||||||
| Property and liability insurance | 7,925.3 | 5,261.4 | 242.6 | 2,906.5 | 8.3 | % | |||||||||||||||||||||||
| Total policyholder benefits | $ | 8,012.6 | $ | 5,327.6 | $ | 242.8 | $ | 2,927.8 | 8.3 | % | |||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Life Insurance in Force | $ | 7,097.2 | $ | 4,659.9 | $ | 0.2 | $ | 2,437.5 | — | % | |||||||||||||||||||
| Premiums: | |||||||||||||||||||||||||||||
| Life insurance | $ | 198.0 | $ | 141.9 | $ | 0.1 | $ | 56.2 | 0.2 | % | |||||||||||||||||||
| Accident and health insurance | 342.8 | 250.9 | 2.6 | 94.5 | 2.8 | % | |||||||||||||||||||||||
| Property and liability insurance | 18,292.7 | 8,823.5 | 175.9 | 9,645.1 | 1.8 | % | |||||||||||||||||||||||
| Total earned premiums | $ | 18,833.5 | $ | 9,216.3 | $ | 178.6 | $ | 9,795.8 | 1.8 | % | |||||||||||||||||||
| Benefits: | |||||||||||||||||||||||||||||
| Life insurance | $ | 36.5 | $ | 24.0 | $ | — | $ | 12.5 | — | % | |||||||||||||||||||
| Accident and health insurance | 53.7 | 47.4 | — | 6.3 | — | % | |||||||||||||||||||||||
| Property and liability insurance | 8,720.6 | 6,249.9 | 277.0 | 2,747.7 | 10.1 | % | |||||||||||||||||||||||
| Total policyholder benefits | $ | 8,810.8 | $ | 6,321.3 | $ | 277.0 | $ | 2,766.5 | 10.0 | % | |||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Life Insurance in Force | $ | 7,555.8 | $ | 5,023.0 | $ | 0.4 | $ | 2,533.2 | — | % | |||||||||||||||||||
| Premiums: | |||||||||||||||||||||||||||||
| Life insurance | $ | 162.9 | $ | 127.8 | $ | 0.1 | $ | 35.2 | 0.3 | % | |||||||||||||||||||
| Accident and health insurance | 525.2 | 341.5 | 3.0 | 186.7 | 1.6 | % | |||||||||||||||||||||||
| Property and liability insurance | 17,634.7 | 8,651.9 | 183.3 | 9,166.1 | 2.0 | % | |||||||||||||||||||||||
| Total earned premiums | $ | 18,322.8 | $ | 9,121.2 | $ | 186.4 | $ | 9,388.0 | 2.0 | % | |||||||||||||||||||
| Benefits: | |||||||||||||||||||||||||||||
| Life insurance | $ | 24.5 | $ | 14.0 | $ | 0.1 | $ | 10.6 | 0.9 | % | |||||||||||||||||||
| Accident and health insurance | 77.2 | 60.2 | 0.5 | 17.5 | 2.9 | % | |||||||||||||||||||||||
| Property and liability insurance | 7,503.0 | 5,250.6 | 241.3 | 2,493.7 | 9.7 | % | |||||||||||||||||||||||
| Total policyholder benefits | $ | 7,604.7 | $ | 5,324.8 | $ | 241.9 | $ | 2,521.8 | 9.6 | % |
F-79
Assurant, Inc.
Schedule V – Valuation and Qualifying Accounts
| Balance at Beginning of Year | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Year | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Valuation allowance for foreign deferred tax assets | $ | 16.7 | $ | 2.4 | $ | 0.9 | $ | — | $ | 20.0 | |||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||
| Available for sale fixed maturity securities | — | 1.9 | — | — | 1.9 | ||||||||||||||||||||||||
| Commercial mortgage loans on real estate | 6.5 | 0.8 | (0.6) | — | 6.7 | ||||||||||||||||||||||||
| Premiums and accounts receivable | 7.2 | 4.5 | 0.2 | 1.5 | 10.4 | ||||||||||||||||||||||||
| Dealer loan receivable | 0.6 | 0.4 | (0.1) | — | 0.9 | ||||||||||||||||||||||||
| Reinsurance recoverables | 5.0 | 0.2 | — | — | 5.2 | ||||||||||||||||||||||||
| High deductible recoverables | 1.4 | (0.5) | — | — | 0.9 | ||||||||||||||||||||||||
| Total | $ | 37.4 | $ | 9.7 | $ | 0.4 | $ | 1.5 | $ | 46.0 | |||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Valuation allowance for foreign deferred tax assets | $ | 16.1 | $ | (5.2) | $ | 5.8 | $ | — | $ | 16.7 | |||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||
| Commercial mortgage loans on real estate | 4.0 | 2.5 | — | — | 6.5 | ||||||||||||||||||||||||
| Premiums and accounts receivable | 9.0 | 1.1 | (0.3) | 2.6 | 7.2 | ||||||||||||||||||||||||
| Dealer loan receivable | 0.7 | — | (0.1) | — | 0.6 | ||||||||||||||||||||||||
| Reinsurance recoverables | 4.8 | 0.2 | — | — | 5.0 | ||||||||||||||||||||||||
| High deductible recoverables | 8.3 | (6.9) | — | — | 1.4 | ||||||||||||||||||||||||
| Total | $ | 42.9 | $ | (8.3) | $ | 5.4 | $ | 2.6 | $ | 37.4 | |||||||||||||||||||
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||
| Valuation allowance for foreign deferred tax assets | $ | 23.6 | $ | (7.5) | $ | — | $ | — | $ | 16.1 | |||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||
| Commercial mortgage loans on real estate | 1.8 | 2.2 | — | — | 4.0 | ||||||||||||||||||||||||
| Premiums and accounts receivable | 9.2 | 3.5 | (0.1) | 3.6 | 9.0 | ||||||||||||||||||||||||
| Dealer loan receivable | 1.7 | — | (1.0) | — | 0.7 | ||||||||||||||||||||||||
| Reinsurance recoverables | 5.4 | (0.6) | — | — | 4.8 | ||||||||||||||||||||||||
| High deductible recoverables | 10.3 | (2.0) | — | — | 8.3 | ||||||||||||||||||||||||
| Total | $ | 52.0 | $ | (4.4) | $ | (1.1) | $ | 3.6 | $ | 42.9 |
F-80
Previous: Item 15. Exhibits and Financial Statement Schedules