Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2022

OR

☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number 001-31978

Assurant, Inc.

(Exact name of registrant as specified in its charter)

Delaware												39-1126612
(State or other jurisdiction of incorporation)												(I.R.S. Employer Identification No.)

55 Broadway, Suite 2901

New York, New York 10006

(212) 859-7000

(Address, including zip code, and telephone number, including area code, of Registrant’s Principal Executive Offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class			Trading Symbol(s)			Name of Each Exchange on Which Registered
Common Stock, $0.01 Par Value			AIZ			New York Stock Exchange
5.25% Subordinated Notes due 2061			AIZN			New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer						☒						Accelerated filer						☐
Non-accelerated filer						☐						Smaller reporting company						☐
												Emerging growth company						☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s common stock outstanding at October 28, 2022 was 52,831,429.

ASSURANT, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2022

TABLE OF CONTENTS

Item Number						Page Number
			PART I FINANCIAL INFORMATION
1.			Consolidated Financial Statements (unaudited) of Assurant, Inc.
			Consolidated Balance Sheets (unaudited) as of September 30, 2022 and December 31, 2021			2
			Consolidated Statements of Operations (unaudited) for the three and nine months ended September 30, 2022 and 2021			3
			Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended September 30, 2022 and 2021			4
			Consolidated Statements of Changes in Equity (unaudited) for the three and nine months ended September 30, 2022 and 2021			5
			Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2022 and 2021			7
			Notes to Consolidated Financial Statements (unaudited)			9
2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			34
3.			Quantitative and Qualitative Disclosures About Market Risk			50
4.			Controls and Procedures			50
			PART II OTHER INFORMATION
1.			Legal Proceedings			51
1A.			Risk Factors			51
2.			Unregistered Sales of Equity Securities and Use of Proceeds			51
6.			Exhibits			52
			Signatures			53

Assurant, Inc.

Consolidated Balance Sheets (unaudited)

			September 30, 2022						December 31, 2021
			(in millions, except number of shares and per share amounts)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost - $6,863.6 and $6,903.9 at September 30, 2022 and December 31, 2021, respectively)			$	6,137.9					$	7,215.3
Equity securities at fair value			302.6						445.7
Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $1.1 at September 30, 2022 and December 31, 2021)			304.4						256.5
Short-term investments			266.8						247.8
Other investments			504.4						506.3
Total investments			7,516.1						8,671.6
Cash and cash equivalents			1,429.8						2,040.8
Premiums and accounts receivable (net of allowances for credit losses of $11.5 and $9.4 at September 30, 2022 and December 31, 2021, respectively)			2,288.9						1,942.5
Reinsurance recoverables (net of allowances for credit losses of $5.7 and $5.0 at September 30, 2022 and December 31, 2021, respectively)			7,561.8						6,181.2
Accrued investment income			85.1						62.1
Deferred acquisition costs			9,577.8						8,811.0
Property and equipment, net			617.6						561.4
Goodwill			2,547.4						2,571.6
Value of business acquired			323.5						583.4
Other intangible assets, net			631.0						719.2
Other assets (net of allowances for credit losses of $2.0 and $2.5 at September 30, 2022 and December 31, 2021, respectively)			666.7						698.9
Assets held for sale (Note 4)			—						1,076.9
Total assets			$	33,245.7					$	33,920.6
Liabilities
Future policy benefits and expenses			$	406.7					$	413.2
Unearned premiums			19,554.9						18,623.7
Claims and benefits payable			3,022.4						1,604.8
Commissions payable			670.9						692.7
Reinsurance balances payable			520.9						446.2
Funds held under reinsurance			374.5						364.2
Accounts payable and other liabilities			2,467.2						3,044.4
Debt			2,129.3						2,202.5
Liabilities held for sale (Note 4)			—						1,064.8
Total liabilities			29,146.8						28,456.5
Commitments and contingencies (Note 16)
Stockholders’ equity
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 55,187,797 and 58,050,202 shares issued and 52,891,708 and 55,754,113 shares outstanding at September 30, 2022 and December 31, 2021, respectively			0.6						0.7
Additional paid-in capital			1,627.1						1,695.0
Retained earnings			3,678.9						4,041.2
Accumulated other comprehensive loss			(1,084.9)						(150.0)
Treasury stock, at cost; 2,296,089 shares at September 30, 2022 and December 31, 2021			(122.8)						(122.8)
Total equity			4,098.9						5,464.1
Total liabilities and equity			$	33,245.7					$	33,920.6

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Consolidated Statements of Operations (unaudited)

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
			(in millions, except number of shares and per share amounts)
Revenues
Net earned premiums			$	2,197.1					$	2,140.1					$	6,502.4					$	6,396.3
Fees and other income			294.6						309.6						942.2						858.0
Net investment income			83.5						76.0						261.8						235.2
Net realized (losses) gains on investments (including $—, $—, $(2.1) and $0.2 of impairment-related (losses) gains for the three and nine months ended September 30, 2022 and 2021, respectively) and fair value changes to equity securities			(27.4)						112.1						(166.2)						123.2
Total revenues			2,547.8						2,637.8						7,540.2						7,612.7
Benefits, losses and expenses
Policyholder benefits			670.5						617.4						1,760.5						1,684.2
Underwriting, selling, general and administrative expenses			1,842.5						1,784.0						5,444.8						5,210.4
Interest expense			26.3						27.5						80.4						84.7
Loss on extinguishment of debt			—						20.7						0.9						20.7
Total benefits, losses and expenses			2,539.3						2,449.6						7,286.6						7,000.0
Income from continuing operations before income tax expense			8.5						188.2						253.6						612.7
Income tax expense			1.2						37.2						45.1						133.8
Net income from continuing operations			7.3						151.0						208.5						478.9
Net income from discontinued operations (Note 4)			—						728.8						—						762.0
Net income			7.3						879.8						208.5						1,240.9
Less: Preferred stock dividends			—						—						—						(4.7)
Net income attributable to common stockholders			$	7.3					$	879.8					$	208.5					$	1,236.2
Earnings Per Common Share
Basic
Net income from continuing operations			$	0.14					$	2.56					$	3.81					$	7.94
Net income from discontinued operations			$	—					$	12.32					$	—					$	12.74
Net income attributable to common stockholders			$	0.14					$	14.88					$	3.81					$	20.68
Diluted
Net income from continuing operations			$	0.14					$	2.54					$	3.78					$	7.87
Net income from discontinued operations			$	—					$	12.25					$	—					$	12.52
Net income attributable to common stockholders			$	0.14					$	14.79					$	3.78					$	20.39
Share Data
Weighted average common shares outstanding used in basic per common share calculations			53,717,373						59,126,313						54,693,799						59,769,690
Plus: Dilutive securities			349,232						353,151						431,051						1,085,631
Weighted average common shares outstanding used in diluted per common share calculations			54,066,605						59,479,464						55,124,850						60,855,321

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Consolidated Statements of Comprehensive Income (unaudited)

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
			(in millions)
Net income			$	7.3					$	879.8					$	208.5					$	1,240.9
Other comprehensive (loss) income:
Change in unrealized gains on securities, net of taxes of $50.5,$184.4, $213.3 and $220.8 for the three and nine months ended September 30, 2022 and 2021, respectively			(209.3)						(663.1)						(836.0)						(786.2)
Change in unrealized gains on derivative transactions, net of taxes of $0.1, $0.2, $0.5 and $0.6 for each of the three and nine months ended September 30, 2022 and 2021, respectively			(0.6)						(0.6)						(1.9)						(1.8)
Change in foreign currency translation, net of taxes of $0.1, $1.1, $(2.5) and $1.3 for the three and nine months ended September 30, 2022 and 2021, respectively			(51.4)						(23.7)						(92.0)						(2.9)
Change in pension and postretirement unrecognized net periodic benefit cost, net of taxes of $0.4, $0.2, $1.3 and $0.9 for the three and nine months ended September 30, 2022 and 2021, respectively			(1.4)						(0.7)						(5.0)						(3.0)
Total other comprehensive loss			(262.7)						(688.1)						(934.9)						(793.9)
Total comprehensive (loss) income			(255.4)						191.7						(726.4)						447.0
Total comprehensive (loss) income attributable to stockholders			$	(255.4)					$	191.7					$	(726.4)					$	447.0

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Consolidated Statements of Changes in Equity (unaudited)

						Three Months Ended September 30, 2022
									Common Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock												Total
						(in millions)
Balance at June 30, 2022									$	0.6					$	1,629.9					$	3,774.2					$	(822.2)					$	(122.8)											$	4,459.7
Stock plan exercises									—						5.8						—						—						—												5.8
Stock plan compensation expense									—						17.9						—						—						—												17.9
Common stock dividends ($0.68 per share)									—						—						(36.7)						—						—												(36.7)
Acquisition of common stock									—						(26.5)						(65.9)						—						—												(92.4)
Net income									—						—						7.3						—						—												7.3
Other comprehensive loss									—						—						—						(262.7)						—												(262.7)
Balance at September 30, 2022									$	0.6					$	1,627.1					$	3,678.9					$	(1,084.9)					$	(122.8)											$	4,098.9

						Three Months Ended September 30, 2021
									Common Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Treasury Stock												Total
						(in millions)
Balance at June 30, 2021									$	0.7					$	1,786.2					$	3,619.8					$	604.0					$	(122.8)											$	5,887.9
Stock plan exercises									—						6.4						—						—						—												6.4
Stock plan compensation expense									—						18.2						—						—						—												18.2
Common stock dividends ($0.66 per share)									—						—						(38.5)						—						—												(38.5)
Acquisition of common stock									—						(62.6)						(264.9)						—						—												(327.5)
Net income									—						—						879.8						—						—												879.8
Acquisition of non-controlling interests									—						(16.9)						—						—						—												(16.9)
Other comprehensive income									—						—						—						(688.1)						—												(688.1)
Balance at September 30, 2021									$	0.7					$	1,731.3					$	4,196.2					$	(84.1)					$	(122.8)											$	5,721.3

									Nine Months Ended September 30, 2022
									Common Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock												Total
									(in millions)
Balance at December 31, 2021									$	0.7					$	1,695.0					$	4,041.2					$	(150.0)					$	(122.8)											$	5,464.1
Stock plan exercises									—						13.6						—						—						—												13.6
Stock plan compensation expense									—						47.2						—						—						—												47.2
Common stock dividends ($2.04 per share)									—						—						(112.7)						—						—												(112.7)
Acquisition of common stock									(0.1)						(128.7)						(458.1)						—						—												(586.9)
Net income									—						—						208.5						—						—												208.5
Other comprehensive loss									—						—						—						(934.9)						—												(934.9)
Balance at September 30, 2022									$	0.6					$	1,627.1					$	3,678.9					$	(1,084.9)					$	(122.8)											$	4,098.9

Assurant, Inc.

Consolidated Statements of Changes in Equity (unaudited)

			Nine Months Ended September 30, 2021
			Preferred Stock						Common Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Treasury Stock						Non-controlling Interests						Total
			(in millions)
Balance at December 31, 2020			$	2.9					$	0.6					$	1,956.8					$	3,533.5					$	709.8					$	(267.4)					$	3.4					$	5,939.6
Stock plan exercises			—						—						11.8						—						—						—						—						11.8
Stock plan compensation expense			—						—						48.6						—						—						—						—						48.6
Common stock dividends ($1.98 per share)			—						—						—						(118.5)						—						—						—						(118.5)
Acquisition of common stock			—						—						(127.2)						(454.4)						—						—						—						(581.6)
Net income			—						—						—						1,240.9						—						—						—						1,240.9
Preferred stock conversion			(2.9)						0.1						(141.8)						—						—						144.6						—						—
Preferred stock dividends ($1.63 per share)			—						—						—						(4.7)						—						—						—						(4.7)
Change in equity of non-controlling interests			—						—						—						(0.6)						—						—						(3.4)						(4.0)
Acquisition of non-controlling interest			—						—						(16.9)						—						—						—						—						(16.9)
Other comprehensive income			—						—						—						—						(793.9)						—						—						(793.9)
Balance at September 30, 2021			$	—					$	0.7					$	1,731.3					$	4,196.2					$	(84.1)					$	(122.8)					$	—					$	5,721.3

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Consolidated Statements of Cash Flows (unaudited)

			Nine Months Ended September 30,
			2022						2021
			(in millions)
Operating activities
Net income attributable to stockholders			$	208.5					$	1,240.9
Adjustments to reconcile net income to net cash provided by operating activities:
Noncash revenues, expenses, gains and losses included in net income from operations:
Income from discontinued operations			—						(762.0)
Deferred tax expense			65.6						122.3
Depreciation and amortization			140.2						126.0
Net realized losses (gains) on investments, including impairment losses			166.2						(123.2)
Stock based compensation expense			47.2						48.6
Loss on extinguishment of debt			0.9						20.7
Changes in operating assets and liabilities:
Insurance policy reserves and expenses			2,388.4						1,425.8
Premiums and accounts receivable			(384.2)						(131.6)
Commissions payable			(9.4)						(77.4)
Reinsurance recoverable			(1,397.2)						(518.7)
Reinsurance balance payable			71.8						37.2
Funds withheld under reinsurance			13.2						(8.6)
Deferred acquisition costs and value of business acquired			(514.1)						(706.6)
Taxes payable (receivable)			49.3						(123.4)
Other assets and other liabilities			(508.7)						(177.2)
Other			(17.9)						(17.0)
Net cash provided by operating activities - discontinued operations			—						151.2
Net cash provided by operating activities			319.8						527.0
Investing activities
Sales of:
Fixed maturity securities available for sale			2,310.3						668.9
Equity securities			43.2						10.6
Other invested assets			123.9						124.4
Subsidiary, net of cash transferred			4.8						1,319.6
Maturities, calls, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale			386.3						730.4
Commercial mortgage loans on real estate			29.1						11.0
Purchases of:
Fixed maturity securities available for sale			(2,681.9)						(2,316.9)
Equity securities			(27.0)						(34.9)
Commercial mortgage loans on real estate			(77.0)						(95.7)
Other invested assets			(91.1)						(58.9)
Property and equipment and other			(133.9)						(131.3)
Subsidiaries, net of cash transferred									(16.6)
Change in short-term investments			(22.1)						(30.2)
Other			0.5						1.5
Net cash used in investing activities - discontinued operations			—						(145.2)
Net cash (used in) provided by investing activities			(134.9)						36.7

Assurant, Inc.

Consolidated Statements of Cash Flows (unaudited)

			Nine Months Ended September 30,
			2022						2021
Financing activities
Issuance of debt, net of issuance costs			—						347.2
Repayment of debt			(75.9)						(419.8)
Acquisition of common stock			(557.6)						(544.3)
Common stock dividends paid			(112.7)						(118.5)
Preferred stock dividends paid			—						(4.7)
Employee stock purchases and withholdings			(21.0)						(17.3)
Net cash provided by (used in) financing activities - discontinued operations			—						—
Net cash used in financing activities			(767.2)						(757.4)
Effect of exchange rate changes on cash and cash equivalents - continuing operations			(42.7)						(7.2)
Effect of exchange rate changes on cash and cash equivalents - discontinued operations			—						0.2
Effect of exchange rate changes on cash and cash equivalents			(42.7)						(7.0)
Change in cash and cash equivalents			(625.0)						(200.7)
Cash and cash equivalents at beginning of period			2,054.8						2,228.6
Cash and cash equivalents at end of period			$	1,429.8					$	2,027.9

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

INDEX OF NOTES

Note Number						Page Number
1.			Nature of Operations			9
2.			Basis of Presentation			9
3.			Recent Accounting Pronouncements			10
4.			Dispositions			12
5.			Segment Information			12
6.			Contract Revenues			15
7.			Investments			17
8.			Fair Value Disclosures			21
9.			Deferred Acquisition Costs			24
10.			Reserves			25
11.			Debt			26
12.			Accumulated Other Comprehensive Income			26
13.			Equity Transactions			28
14.			Earnings Per Common Share			29
15.			Retirement and Other Employee Benefits			30
16.			Commitments and Contingencies			31
17.			Prior Period Financial Statements			31
18.			Subsequent Event			33

1. Nature of Operations

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

The Company’s common stock is traded on the New York Stock Exchange under the symbol “AIZ”.

2. Basis of Presentation

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements.

The interim financial data as of September 30, 2022 and for the three and nine months ended September 30, 2022 and 2021 is unaudited. In the opinion of management, the interim data includes all adjustments necessary for a fair statement of the results for the interim periods. The unaudited interim Consolidated Financial Statements include the accounts of the Company

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. Certain prior period amounts have been revised to conform to the current year presentation, including the change to the segment measure of profitability described in Note 5.

Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying unaudited interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.

Revision of Prior Period Financial Statements

In second quarter 2022, the Company revised its prior period financial statements to reflect the correction of an error identified in second quarter 2022 related to reinsurance of claims and benefits payable within the Connected Living business unit in the Global Lifestyle segment occurring in late 2018 through first quarter 2022, as well as other immaterial errors which were previously recorded in the periods in which the Company identified them.

A summary of revisions to the Company’s consolidated balance sheet as of December 31, 2021; and the consolidated statements of operations, comprehensive income and changes in equity, in each case, for the three and nine months ended September 30, 2021, and cash flows for the nine months ended September 30, 2021 is presented in Note 17. The Company will also correct previously reported financial information for such errors in its future filings, as applicable.

3. Recent Accounting Pronouncements

Adopted

Facilitation of the Effects of Reference Rate Reform on Financial Reporting: In March 2020, the Financial Accounting Standards Board (the “FASB”) issued guidance which provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.

The relief is applicable only to legacy contracts if the amendments made to the agreements are solely for reference rate reform activities. The provisions must be applied consistently for all relevant transactions other than derivatives, which may be applied at a hedging relationship level. The guidance is effective upon issuance. The guidance on contract modifications is applied prospectively from any date beginning March 12, 2020. Unlike other topics, the provisions of this update are only available until December 31, 2022, when the reference rate replacement activity is expected to have been completed.

This standard is effective as of January 1, 2022, but has no impact on the Company’s consolidated financial statements as the Company currently has no contracts or hedging relationships for which the reference LIBOR or another rate is expected to be discontinued and a GAAP contract modification is required.

Improvements to Convertible Instruments and Contracts in an Entity’s Own Equity: In August 2020, the FASB issued guidance that simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The guidance removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more contracts in an entity’s own equity to qualify for it. The guidance also simplifies the diluted earnings per common share (“EPS”) calculation in the areas of convertible instruments and instruments that qualify for the derivatives scope exception for contracts in an entity’s own equity to address accounting for the guidance changes to the classification, recognition and measurement.

This standard is effective as of January 1, 2022, but has no impact on the Company’s consolidated financial statements as the Company currently has no convertible instruments or contracts in its own equity.

Not Yet Adopted

Targeted improvements to the accounting for long-duration contracts: In August 2018, the FASB issued guidance that provides targeted improvements to the accounting for long-duration contracts. The guidance includes the following primary changes: assumptions supporting benefit reserves will no longer be locked-in but must be updated at least annually with the

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

impact of changes to the liability reflected in earnings (except for discount rates); the discount rate assumptions will be based on the upper-medium grade (low credit risk) fixed-income instrument yield instead of the earnings rate of invested assets; the discount rate must be evaluated at each reporting date and the impact of changes to the liability estimate as a result of updating the discount rate assumption is required to be recognized in other comprehensive income; the provision for adverse deviation is eliminated; and premium deficiency testing is eliminated. Other noteworthy changes include the following: differing models for amortizing deferred acquisition costs will become uniform for all long-duration contracts based on a constant rate over the expected term of the related in-force contracts; all market risk benefits associated with deposit contracts must be reported at fair value with changes reflected in income except for changes related to credit risk which will be recognized in other comprehensive income; and disclosures will be expanded to include disaggregated roll forwards of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions and methods used in measurement.

The guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. Generally, the amendments are applied retrospectively as of the beginning of the earliest period presented with two transition options available for changing the assumptions. With the sale of the disposed Global Preneed business in August 2021, the adoption of this standard is expected to have no material impact on the Company’s financial position and results of operations.

Recognition and Measurement of Revenue Contracts with Customers Acquired in a Business Combination: In October 2021, the FASB issued guidance to improve comparability after a business combination is reported in the acquirer’s financial statements by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. Generally, the acquirer will recognize the acquired contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in the acquisition accounting. Under the amended guidance, the acquirer should account for the related revenue contracts as if it had originated the contracts. The amendments provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination.

The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendment is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The adoption of this standard is expected to have no material impact on the Company’s financial position and results of operations.

Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions: In June 2022, the FASB issued guidance on investments in equity securities measured at fair value that are subject to contractual restrictions preventing the sale of those securities. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. Disclosures will be required to provide investors with information about the restriction including the fair value of the equity securities subject to any contractual sale restrictions reflected in the balance sheet, the nature and remaining duration of such restrictions, and any circumstances that could cause a lapse in such restrictions.

The guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company plans to early adopt the standard if it invests in equity securities that have contractual restrictions preventing the sale of those securities prior to the effective date.

Inflation Reduction Act of 2022: In August 2022, the U.S. government enacted the Inflation Reduction Act (the “IRA”) which makes changes to the Internal Revenue Code of 1986, as amended, including the imposition of (1) a new corporate alternative minimum tax (“CAMT”) based on applicable financial statement income and (2) a 1% excise tax on corporate stock repurchases. The effective date of the IRA is January 1, 2023. After initial analysis of the IRA, the Company does not expect a material impact to the financial statements in 2022. The Company is undergoing further analysis to determine if the CAMT will apply to the financial statements in 2023 and future years. Additionally, any excise tax incurred on corporate stock repurchases is expected to be recognized as part of the cost basis of the treasury stock acquired and not reported as part of income tax expense.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

4. Dispositions

Sale of Global Preneed

On August 2, 2021, the Company completed its sale of the legal entities which comprise the businesses previously reported as the Global Preneed segment and certain businesses previously disposed of through reinsurance, which were previously reported in the Corporate and Other segment, to subsidiaries of CUNA Mutual Group for an aggregate purchase price at closing of $1.34 billion in cash.

The following table summarizes the components of net income from discontinued operations included in the consolidated statements of operations:

			Three Months Ended September 30,						Nine Months Ended September 30,
			2021						2021
Revenues
Net earned premiums			$	6.1					$	42.6
Fees and other income			13.6						91.0
Net investment income			23.7						168.4
Net realized gains on investments and fair value changes to equity securities			0.5						4.2
Gain on disposal of businesses			926.4						920.1
Total revenues			970.3						1,226.3
Benefits, losses and expenses
Policyholder benefits			24.6						172.7
Underwriting, selling, general and administrative expenses			12.8						85.2
Total benefits, losses and expenses			37.4						257.9
Income from discontinued operations before income taxes			932.9						968.4
Benefit for income taxes			204.1						206.4
Net income from discontinued operations			$	728.8					$	762.0

Sale of John Alden Life Insurance Company

On April 1, 2022, the Company completed its sale of John Alden Life Insurance Company (“JALIC”), a run-off business reported in the Corporate and Other segment. Prior to the sale, JALIC met the criteria for held for sale presentation and, therefore, its assets and liabilities were recorded as held for sale in the December 31, 2021 consolidated balance sheet. The major classes of assets and liabilities held for sale included $915.8 million of future policy benefits and expenses, $881.6 million of reinsurance recoverables, $159.6 million of other investments and $117.2 million of claims and benefits payable as December 31, 2021.

Most of the $881.6 million reinsurance recoverables balance for JALIC, which was included in assets held for sale as of December 31, 2021 was reinsured with Employers Reassurance Corporation and was uncollateralized.

5. Segment Information

In conjunction with the transition of the Company’s CEO and chief operating decision maker on January 1, 2022, the Company changed its segment measure of profitability for its reportable segments to an Adjusted EBITDA metric, as the primary measure used for purposes of making decisions about allocating resources to the segments and assessing performance, from segment net income from continuing operations, effective as of that date. Prior period amounts have been revised to reflect the new segment measure of profitability.

Beginning with second quarter 2022, the Company changed the calculation of its segment measure of profitability, Adjusted EBITDA, to exclude certain businesses which the Company expects to fully exit, including the long-tail commercial

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

liability businesses in Global Housing (sharing economy and small commercial businesses), as well as certain legacy long-duration insurance policies within Global Lifestyle (collectively referred to as “non-core operations”), and present them as a reconciling item to consolidated net income from continuing operations. The non-core operations have been or are in the process of being exited by the Company, but do not qualify as held for sale or discontinued operations under GAAP accounting guidance.

As of September 30, 2022, the Company had three reportable segments: Global Lifestyle, Global Housing and Corporate and Other. The Company defines Adjusted EBITDA as net income from continuing operations, excluding net realized gains (losses) on investments and fair value changes to equity securities, COVID-19 direct and incremental expenses, loss on extinguishment of debt, non-core operations (defined above), net income (loss) attributable to non-controlling interests, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities), as well as other highly variable or unusual items.

All prior period amounts have been revised, which impacts both segment Adjusted EBITDA and other adjustments under reconciling items to consolidated net income from continuing operations, but does not impact consolidated net income. The sharing economy and small commercial businesses, previously reported through the Company’s Global Housing segment, generated Adjusted EBITDA of $(3.6) million and $(46.8) million for the three and nine months ended September 30, 2022, respectively, and Adjusted EBITDA of $(6.1) million and $(0.6) million for the three and nine months ended September 30, 2021, respectively. The legacy long-duration insurance policies included in non-core operations and previously reported through the Company’s Global Lifestyle segment, generated Adjusted EBITDA of $0.7 million and $1.7 million for the three and nine months ended September 30, 2022, respectively, and Adjusted EBITDA of $(2.1) million and $(2.0) million for the three and nine months ended September 30, 2021, respectively.

Segment Adjusted EBITDA was also revised for an error related to reinsurance of claims and benefits payable within the Connected Living business unit in the Global Lifestyle segment, and for other unrelated immaterial errors. See Note 2 for more information.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

The following table presents segment Adjusted EBITDA with a reconciliation to net income attributable to common shareholders:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Adjusted EBITDA by segment:
Global Lifestyle			$	165.9					$	176.3					$	587.3					$	546.0
Global Housing			(25.0)						15.2						166.7						235.2
Corporate and Other			(24.9)						(23.0)						(72.0)						(67.8)
Reconciling items to consolidated net income from continuing operations:
Interest expense			(26.3)						(27.5)						(80.4)						(84.7)
Depreciation expense			(22.6)						(18.1)						(64.7)						(52.4)
Amortization of purchased intangible assets			(17.3)						(15.7)						(51.9)						(50.0)
Net realized (losses) gains on investments and fair value changes to equity securities			(27.4)						112.1						(166.2)						123.2
COVID-19 direct and incremental expenses			(1.1)						(2.0)						(3.6)						(7.2)
Loss on extinguishment of debt			—						(20.7)						(0.9)						(20.7)
Non-core operations			(2.9)						(8.2)						(45.1)						(2.6)
Other adjustments			(9.9)						(0.2)						(15.6)						(6.3)
Total reconciling items			(107.5)						19.7						(428.4)						(100.7)
Income from continuing operations before income tax expense			8.5						188.2						253.6						612.7
Income tax expense			1.2						37.2						45.1						133.8
Net income from continuing operations			$	7.3					$	151.0					$	208.5					$	478.9

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

The Company’s net earned premiums, fees and other income by segment and product are as follows:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Global Lifestyle:
Connected Living (1)			$	1,046.8					$	1,094.1					$	3,182.0					$	3,221.9
Global Automotive			943.5						867.1						2,751.5						2,535.1
Total			$	1,990.3					$	1,961.2					$	5,933.5					$	5,757.0
Global Housing:
Lender-placed Insurance			$	262.2					$	256.2					$	801.9					$	790.9
Multifamily Housing			119.9						121.7						362.0						361.2
Specialty and Other			102.0						93.2						301.9						295.5
Total			$	484.1					$	471.1					$	1,465.8					$	1,447.6

(1)Effective January 1, 2022, the Connected Living line of business includes the previous Global Financial Services and Other line of business. Prior period amounts have been revised to reflect this change.

Net earned premiums, fees and other income for non-core operations were $17.2 million for each of the three months ended September 30, 2022 and 2021, and $44.7 million and $49.1 million for the nine months ended September 30, 2022 and 2021, respectively.

The following table presents total assets by segment:

			September 30, 2022						December 31, 2021
Global Lifestyle (1)			$	26,617.9					$	26,120.9
Global Housing (1)			5,367.8						4,007.3
Corporate and Other (2)			1,260.0						3,792.4
Segment assets			$	33,245.7					$	33,920.6

(1)Segment assets for Global Lifestyle and Global Housing do not include net unrealized gains (losses) on securities attributable to those segments, which are all included within Corporate and Other.

(2)Includes the assets for non-core operations of $385.0 million and $326.3 million as of September 30, 2022 and December 31, 2021, respectively.

6. Contract Revenues

The Company partners with clients to provide consumers with a diverse range of protection products and services. The Company’s revenues from protection products are accounted for as insurance contracts and are recognized over the term of the insurance protection provided. Revenues from service contracts and sales of products are recognized as the contractual performance obligations are satisfied or the products are delivered. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for performing the services or transferring products. If payments are received before the related revenue is recognized, the amount is recorded as unearned revenue or advance payment liabilities, until the performance obligations are satisfied or the products are transferred.

The disaggregated revenues from service contracts included in fees and other income on the consolidated statements of operations are $257.9 million and $264.0 million for Global Lifestyle and $19.8 million and $22.4 million for Global Housing for the three months ended September 30, 2022 and 2021, respectively. The disaggregated revenues from service contracts included in fees and other income on the consolidated statement of operations are $825.5 million and $730.1 million for Global Lifestyle and $63.4 million and $71.8 million for Global Housing for the nine months ended September 30, 2022 and 2021, respectively.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

Global Lifestyle

In the Company’s Global Lifestyle segment, revenues from service contracts and sales of products are primarily from the Company’s Connected Living business. Through partnerships with mobile carriers, the Company provides administrative services related to its mobile device protection products, including program design and marketing strategy, risk management, data analytics, customer support and claims handling, supply chain and service delivery, repair and logistics, and device disposition. Administrative fees are generally billed monthly based on the volume of services provided during the billing period (for example, based on the number of mobile subscribers) with payment due within a short-term period. Each service or bundle of services, depending on the contract, is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer.

The Company also repairs, refurbishes and then sells mobile and other electronic devices, on behalf of its clients, for a bundled per unit fee. The entire processing of the device is considered one performance obligation with a standalone selling price and thus, the per unit fee is recognized when the products are sold. Payments are generally due prior to shipment or within a short-term period.

Global Housing

In the Company’s Global Housing segment, revenues from service contracts and sales of products are primarily from the Company’s Lender-placed Insurance business. Under the Company’s Lender-placed Insurance business, the Company provides loan and claim payment tracking services for lenders. The Company generally invoices its customers weekly or monthly based on the volume of services provided during the billing period with payment due within a short-term period. Each service is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer.

Contract Balances

The receivables and unearned revenue under these contracts were $265.9 million and $173.7 million, respectively, as of September 30, 2022, and $313.7 million and $191.5 million, respectively, as of December 31, 2021. These balances are included in premiums and accounts receivable and accounts payable and other liabilities, respectively, in the consolidated balance sheets. Revenue from service contracts and sales of products recognized during the three months ended September 30, 2022 and 2021 that was included in unearned revenue as of December 31, 2021 and 2020 was $20.0 million and $12.5 million, respectively. Revenue from service contracts and sales of products recognized during the nine months ended September 30, 2022 and 2021 that was included in unearned revenue as of December 31, 2021 and 2020 was $69.0 million and $47.6 million, respectively.

In certain circumstances, the Company defers upfront commissions and other costs in connection with client contracts in excess of one year where the Company can demonstrate future economic benefit. For these contracts, expense is recognized as revenues are earned. The Company periodically assesses recoverability based on the performance of the related contracts. As of September 30, 2022 and December 31, 2021, the Company had approximately $62.3 million and $93.0 million, respectively, of such intangible assets attributed to service contracts that will be expensed over the term of the client contracts.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

7. Investments

The following tables show the cost or amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value of the Company’s fixed maturity securities as of the dates indicated:

			September 30, 2022
			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			$	102.0					$	—					$	0.3					$	(7.1)					$	95.2
States, municipalities and political subdivisions			160.8						—						0.9						(16.6)						145.1
Foreign governments			403.1						—						0.6						(21.0)						382.7
Asset-backed			670.1						—						3.0						(46.9)						626.2
Commercial mortgage-backed			461.7						—						—						(50.5)						411.2
Residential mortgage-backed			515.5						—						0.5						(57.7)						458.3
U.S. corporate			3,253.0						—						9.9						(374.1)						2,888.8
Foreign corporate			1,297.4						—						1.9						(168.9)						1,130.4
Total fixed maturity securities			$	6,863.6					$	—					$	17.1					$	(742.8)					$	6,137.9

			December 31, 2021
			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			$	83.0					$	—					$	2.1					$	(0.1)					$	85.0
States, municipalities and political subdivisions			142.2						—						7.0						(0.7)						148.5
Foreign governments			436.0						—						5.9						(4.2)						437.7
Asset-backed			411.1						—						14.2						(2.3)						423.0
Commercial mortgage-backed			466.7						—						10.3						(3.3)						473.7
Residential mortgage-backed			578.4						—						25.2						(1.7)						601.9
U.S. corporate			3,581.2						—						235.9						(14.0)						3,803.1
Foreign corporate			1,205.3						—						46.0						(8.9)						1,242.4
Total fixed maturity securities			$	6,903.9					$	—					$	346.6					$	(35.2)					$	7,215.3

The cost or amortized cost and fair value of fixed maturity securities as of September 30, 2022 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

			Cost or Amortized Cost						Fair Value
Due in one year or less			$	182.5					$	181.6
Due after one year through five years			1,697.8						1,614.2
Due after five years through ten years			2,241.6						1,973.5
Due after ten years			1,094.4						872.9
Total			5,216.3						4,642.2
Asset-backed			670.1						626.2
Commercial mortgage-backed			461.7						411.2
Residential mortgage-backed			515.5						458.3
Total			$	6,863.6					$	6,137.9

The following table sets forth the net realized gains (losses) on investments and fair value changes to equity securities, including impairments, recognized in the consolidated statements of operations for the periods indicated:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities:
Fixed maturity securities			$	(21.9)					$	16.1					$	(63.0)					$	19.3
Equity securities (1)			(5.2)						95.1						(102.4)						100.6
Commercial mortgage loans on real estate			(0.2)						0.5						—						0.7
Other investments			(0.1)						0.4						1.3						2.4
Total net realized (losses) gains on investments related to sales and other and fair value changes to equity securities			(27.4)						112.1						(164.1)						123.0
Net realized (losses) gains related to impairments:
Fixed maturity securities			—						—						(1.6)						1.2
Other investments			—						—						(0.5)						(1.0)
Total net realized (losses) gains related to impairments			—						—						(2.1)						0.2
Total net realized (losses) gains on investments and fair value changes to equity securities			$	(27.4)					$	112.1					$	(166.2)					$	123.2

(1)Upward adjustments of $0.0 million, $19.5 million, $23.0 million and $25.1 million and impairments of $0.0 million, $0.0 million, $0.0 million and $1.0 million were realized on equity investments accounted for under the measurement alternative for the three and nine months ended September 30, 2022 and 2021, respectively.

The following table sets forth the portion of fair value changes to equity securities held for the periods indicated:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Net (losses) gains recognized on equity securities			$	(5.2)					$	95.1					$	(102.4)					$	100.6
Less: Net realized gains related to sales of equity securities			(0.2)						1.1						20.0						2.1
Total fair value changes to equity securities held (1)			$	(5.0)					$	94.0					$	(122.4)					$	98.5

(1)Three and nine months ended September 30, 2022 included $0.6 million and $78.5 million of net losses from four equity positions that went public during 2021. The total fair value of these investments as of September 30, 2022 was $24.4 million, included in equity securities on the consolidated balance sheet.

Equity investments accounted for under the measurement alternative are included within other investments on the consolidated balance sheets. The following table summarizes information related to these investments:

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

			September 30, 2022						December 31, 2021
Initial cost			$	86.0					$	74.4
Cumulative upward adjustments			58.6						42.7
Cumulative downward adjustments (including impairments)			(15.4)						(15.4)
Carrying value			$	129.2					$	101.7

The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities as of September 30, 2022 and December 31, 2021 were as follows:

			September 30, 2022
			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			$	87.8					$	(6.6)					$	4.1					$	(0.5)					$	91.9					$	(7.1)
States, municipalities and political subdivisions			96.4						(10.9)						21.8						(5.7)						118.2						(16.6)
Foreign governments			306.9						(17.9)						26.8						(3.1)						333.7						(21.0)
Asset-backed			474.3						(38.5)						76.7						(8.4)						551.0						(46.9)
Commercial mortgage-backed			337.9						(35.5)						73.3						(15.0)						411.2						(50.5)
Residential mortgage-backed			413.2						(45.2)						32.3						(12.5)						445.5						(57.7)
U.S. corporate			2,460.4						(295.9)						225.8						(78.2)						2,686.2						(374.1)
Foreign corporate			942.8						(117.5)						157.8						(51.4)						1,100.6						(168.9)
Total fixed maturity securities			$	5,119.7					$	(568.0)					$	618.6					$	(174.8)					$	5,738.3					$	(742.8)

			December 31, 2021
			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			$	31.5					$	(0.1)					$	—					$	—					$	31.5					$	(0.1)
States, municipalities and political subdivisions			48.1						(0.7)						—						—						48.1						(0.7)
Foreign governments			216.0						(4.1)						4.0						(0.1)						220.0						(4.2)
Asset-backed			257.7						(2.1)						9.8						(0.2)						267.5						(2.3)
Commercial mortgage-backed			274.8						(2.9)						2.0						(0.4)						276.8						(3.3)
Residential mortgage-backed			94.0						(1.5)						10.0						(0.2)						104.0						(1.7)
U.S. corporate			687.8						(13.1)						15.2						(0.9)						703.0						(14.0)
Foreign corporate			394.0						(8.6)						6.7						(0.3)						400.7						(8.9)
Total fixed maturity securities			$	2,003.9					$	(33.1)					$	47.7					$	(2.1)					$	2,051.6					$	(35.2)

Total gross unrealized losses represented approximately 13% and 2% of the aggregate fair value of the related securities as of September 30, 2022 and December 31, 2021, respectively. Approximately 76% and 94% of these gross unrealized losses had been in a continuous loss position for less than twelve months as of September 30, 2022 and December 31, 2021, respectively. The total gross unrealized losses are comprised of 3,874 and 1,202 individual securities as of September 30, 2022 and December 31, 2021, respectively. In accordance with its policy, the Company concluded that for these securities, the gross unrealized losses as of September 30, 2022 and December 31, 2021 were related to non-credit factors and therefore, did not

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

recognize credit-related losses during the three and nine months ended September 30, 2022. Additionally, the Company currently does not intend to and is not required to sell these investments prior to an anticipated recovery in value.

The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. As of September 30, 2022, approximately 36% 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 $9.5 million as of September 30, 2022 and from $0.1 million to $9.6 million as of December 31, 2021.

Credit quality indicators for commercial mortgage loans are loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments and is commonly expressed as a ratio. The loan-to-value and debt-service coverage ratios are generally updated annually in the fourth quarter.

The following table presents the amortized cost basis of commercial mortgage loans, excluding the allowance for credit losses, by origination year for certain key credit quality indicators at September 30, 2022 and December 31, 2021.

			September 30, 2022
			Origination Year
			2022						2021						2020						2019						2018						Prior						Total						% of Total
Loan to value ratios (1):
70% and less			$	43.9					$	68.8					$	—					$	—					$	—					$	85.9					$	198.6					65.0		%
71% to 80%			30.9						44.8						2.7						—						4.6						1.0						84.0						27.5		%
81% to 95%			—						21.0						—						—						—						—						21.0						6.9		%
Greater than 95%			—						—						—						—						—						1.9						1.9						0.6		%
Total			$	74.8					$	134.6					$	2.7					$	—					$	4.6					$	88.8					$	305.5					100.0		%

			September 30, 2022
			Origination Year
			2022						2021						2020						2019						2018						Prior						Total						% of Total
Debt-service coverage ratios (2):
Greater than 2.0			$	24.0					$	57.9					$	2.7					$	—					$	—					$	56.8					$	141.4					46.3		%
1.5 to 2.0			26.9						37.1						—						—						4.6						19.6						88.2						28.9		%
1.0 to 1.5			23.9						39.6						—						—						—						7.1						70.6						23.1		%
Less than 1.0			—						—						—						—						—						5.3						5.3						1.7		%
Total			$	74.8					$	134.6					$	2.7					$	—					$	4.6					$	88.8					$	305.5					100.0		%

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

			December 31, 2021
			Origination Year
			2021						2020						2019						2018						2017						Prior						Total						% of Total
Loan to value ratios (1):
70% and less			$	71.7					$	5.6					$	—					$	—					$	4.0					$	99.8					$	181.1					70.3		%
71% to 80%			61.8						—						—						4.7						—						1.0						67.5						26.2		%
81% to 95%			—						—						—						—						—						1.1						1.1						0.4		%
Greater than 95%			—						—						—						—						5.8						2.1						7.9						3.1		%
Total			$	133.5					$	5.6					$	—					$	4.7					$	9.8					$	104.0					$	257.6					100.0		%

			December 31, 2021
			Origination Year
			2021						2020						2019						2018						2017						Prior						Total						% of Total
Debt-service coverage ratios (2):
Greater than 2.0			$	59.3					$	5.6					$	—					$	—					$	—					$	70.5					$	135.4					52.6		%
1.5 to 2.0			34.1						—						—						4.7						4.0						17.5						60.3						23.4		%
1.0 to 1.5			40.1						—						—						—						—						9.9						50.0						19.4		%
Less than 1.0			—						—						—						—						5.8						6.1						11.9						4.6		%
Total			$	133.5					$	5.6					$	—					$	4.7					$	9.8					$	104.0					$	257.6					100.0		%

(1)Loan-to-value ratio derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated at least annually.

(2)Debt-service coverage ratio calculated using most recent reported operating results from property operators divided by annual debt service coverage.

8. Fair Value Disclosures

Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures

The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company has categorized its recurring fair value basis financial assets and liabilities into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique.

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and takes into account factors specific to the asset or liability.

The levels of the fair value hierarchy are described below:

• Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access.

• Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

are not active and inputs other than quoted prices that are observable in the marketplace for the asset or liability. The observable inputs are used in valuation models to calculate the fair value for the asset or liability.

• Level 3 inputs are unobservable but are significant to the fair value measurement for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.

The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy.

The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021. The amounts presented below for short-term investments, other investments, cash equivalents, other assets, assets held in and liabilities related to separate accounts and other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan (“AIP”), the American Security Insurance Company Investment Plan, the Assurant Deferred Compensation Plan and other derivatives. Other liabilities are comprised of investments in the AIP, contingent considerations related to business combinations and other derivatives. The fair value amount and the majority of the associated levels presented for other investments and assets and liabilities held in separate accounts are received directly from third parties.

			September 30, 2022
			Total						Level 1						Level 2						Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities			$	95.2					$	—					$	95.2					$	—
States, municipalities and political subdivisions			145.1						—						145.1						—
Foreign governments			382.7						—						382.7						—
Asset-backed			626.2						—						569.3						56.9			(7)
Commercial mortgage-backed			411.2						—						411.2						—
Residential mortgage-backed			458.3						—						458.3						—
U.S. corporate			2,888.8						—						2,885.0						3.8
Foreign corporate			1,130.4						—						1,127.3						3.1
Equity securities:
Mutual funds			32.9						32.9						—						—
Common stocks			37.4						36.5						0.7						0.2
Non-redeemable preferred stocks			232.3						—						232.3						—
Short-term investments			228.1						150.0			(2)			78.1			(3)			—
Other investments			56.3						56.1			(1)			—						0.2
Cash equivalents			667.0						608.5			(2)			58.5			(3)			—
Other assets			4.2						—						4.2			(4)			—
Assets held in separate accounts			9.8						4.5			(1)			5.3			(3)			—
Total financial assets			$	7,405.9					$	888.5					$	6,453.2					$	64.2
Financial Liabilities
Other liabilities			$	64.4					$	56.1		(1)			$	—					$	8.3		(5)
Liabilities related to separate accounts			9.8						4.5			(1)			5.3			(3)			—
Total financial liabilities			$	74.2					$	60.6					$	5.3					$	8.3

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

			December 31, 2021
			Total						Level 1						Level 2						Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities			$	85.0					$	—					$	85.0					$	—
States, municipalities and political subdivisions			148.5						—						148.5						—
Foreign governments			437.7						—						437.7						—
Asset-backed			423.0						—						423.0						—
Commercial mortgage-backed			473.7						—						473.7						—
Residential mortgage-backed			601.9						—						601.9						—
U.S. corporate			3,803.1						—						3,799.7						3.4
Foreign corporate			1,242.4						—						1,238.8						3.6
Equity securities:
Mutual funds			33.3						33.3						—						—
Common stocks			151.1						15.5						0.7						134.9			(6)
Non-redeemable preferred stocks			261.3						—						261.3						—
Short-term investments			207.2						200.1			(2)			7.1						—
Other investments			72.6						72.4			(1)			—						0.2
Cash equivalents			1,243.9						1,190.9			(2)			53.0			(3)			—
Other assets			1.7						—						1.7			(4)			—
Assets held in separate accounts			11.8						7.7			(1)			4.1			(3)			—
Total financial assets			$	9,198.2					$	1,519.9					$	7,536.2					$	142.1
Financial Liabilities
Other liabilities			$	76.4					$	72.4		(1)			$	—					$	4.0		(5)
Liabilities related to separate accounts			11.8						7.7			(1)			4.1			(3)			—
Total financial liabilities			$	88.2					$	80.1					$	4.1					$	4.0

(1)Primarily includes mutual funds and related obligations.

(2)Primarily includes money market funds.

(3)Primarily includes fixed maturity securities and related obligations.

(4)Primarily includes derivatives.

(5)Includes contingent consideration liabilities and other derivatives.

(6)These equity securities are subject to lock up agreements and therefore an illiquidity discount was applied to the exchange traded price, which includes significant unobservable inputs.

(7)Primarily includes the fair value of private fixed maturity securities, which are originated by internal private asset managers, and may incorporate significant unobservable inputs.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

The following tables disclose the carrying value, fair value and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of the dates indicated:

			September 30, 2022
									Fair Value
			Carrying Value						Total						Level 1						Level 2						Level 3
Financial Assets
Commercial mortgage loans on real estate			$	304.4					$	284.5					$	—					$	—					$	284.5
Other investments			6.8						6.8						1.7						—						5.1
Other assets			13.8						13.8						—						—						13.8
Total financial assets			$	325.0					$	305.1					$	1.7					$	—					$	303.4
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)			$	8.1					$	8.2					$	—					$	—					$	8.2
Funds withheld under reinsurance			374.5						374.5						374.5						—						—
Debt			2,129.3						1,938.7						—						1,938.7						—
Total financial liabilities			$	2,511.9					$	2,321.4					$	374.5					$	1,938.7					$	8.2
			December 31, 2021
									Fair Value
			Carrying Value						Total						Level 1						Level 2						Level 3
Financial Assets
Commercial mortgage loans on real estate			$	256.5					$	266.0					$	—					$	—					$	266.0
Other investments			4.2						4.2						2.0						—						2.2
Other assets			24.9						24.9						—						—						24.9
Total financial assets			$	285.6					$	295.1					$	2.0					$	—					$	293.1
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)			$	8.5					$	9.6					$	—					$	—					$	9.6
Funds withheld under reinsurance			364.2						364.2						364.2						—						—
Debt			2,202.5						2,456.3						—						2,456.3						—
Total financial liabilities			$	2,575.2					$	2,830.1					$	364.2					$	2,456.3					$	9.6

(1)Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the tables above.

9. Deferred Acquisition Costs

The following table discloses information about deferred acquisition costs as of the dates indicated:

			For the Three Months Ended September 30,												For the Nine Months Ended September 30,
			2022						2021						2022						2021
Beginning balance			$	9,359.0					$	8,136.6					$	8,811.0					$	7,393.5
Costs deferred			1,170.2						1,234.7						3,507.7						3,605.2
Amortization			(951.4)						(823.1)						(2,740.9)						(2,450.5)
Ending balance			$	9,577.8					$	8,548.2					$	9,577.8					$	8,548.2

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

10. Reserves

Reserve Roll Forward

The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and is comprised of case and incurred but not reported (“IBNR”) reserves.

Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively.

The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented.

			For the Nine Months Ended September 30,
			2022						2021
Claims and benefits payable, at beginning of period			$	1,604.8					$	1,619.9
Less: Reinsurance ceded and other			(825.9)						(850.5)
Net claims and benefits payable, at beginning of period			778.9						769.4
Incurred losses and loss adjustment expenses related to:
Current year			1,728.0						1,714.8
Prior years			32.5						(30.6)
Total incurred losses and loss adjustment expenses			1,760.5						1,684.2
Paid losses and loss adjustment expenses related to:
Current year			1,106.2						1,158.2
Prior years			449.8						447.7
Total paid losses and loss adjustment expenses			1,556.0						1,605.9
Net claims and benefits payable, at end of period			983.4						847.7
Plus: Reinsurance ceded and other (1)			2,039.0						1,057.3
Claims and benefits payable, at end of period (1)			$	3,022.4					$	1,905.0

(1)Includes reinsurance recoverables and claims and benefits payable of $960.4 million and $221.6 million as of September 30, 2022 and 2021, respectively, which was ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program.

The Company experienced net unfavorable loss development for the nine months ended September 30, 2022 of $32.5 million and net favorable loss development of $30.6 million for the nine months ended September 30, 2021 as presented in the roll forward table above. The unfavorable development is attributed to the sharing economy and small commercial lines of business, now reported in the Corporate and Other segment within non-core operations.

Global Lifestyle contributed $42.3 million and $34.1 million to the net favorable loss development for the nine months ended September 30, 2022 and 2021, respectively. The net favorable loss development in both periods was attributable to nearly all lines of business across most of the Company’s regions with a concentration on more recent accident years and based on emerging evaluations regarding loss experience each period. For the nine months ended September 30, 2022, Global Automotive also experienced favorable loss development from ancillary products due to the strong used vehicle market. Many of these contracts and products contain retrospective commission (profit sharing) provisions that would result in offsetting increases or decreases in expense dependent on if the development was favorable or unfavorable.

Global Housing contributed $22.8 million of net unfavorable loss development for the nine months ended September 30, 2022 and $0.6 million of net favorable development for the nine months ended September 30, 2021. The net unfavorable loss development for the nine months ended September 30, 2022 was comprised of $11.1 million from non-catastrophe losses and $11.7 million from prior catastrophe events. Hurricane Eta from accident year 2020 drove the unfavorable development for

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

catastrophes where the loss development pattern was longer than expected and the average claim severities were higher than expected. For non-catastrophe losses, Lender-placed Insurance and Multifamily Housing products developed unfavorably due to inflationary impacts on severity and lengthening claim settlement lags, partially offset by favorable development across other products. The net favorable loss development for the nine months ended September 30, 2021 were attributable to multiple lines of business with a concentration in recent accident years.

The sharing economy and small commercial lines of business, reported within non-core operations, contributed $57.1 million and $11.0 million in unfavorable development during the nine months ended September 30, 2022 and 2021, respectively. The $57.1 million in unfavorable development consisted of $45.2 million from sharing economy and $11.9 million from small commercial. The unfavorable development from sharing economy was driven by emerging adverse claim development trends on known claims as well as reserve assumption revisions to reflect relevant industry benchmarks. Both sharing economy and small commercial experienced unfavorable development on known claims driven by social inflation and the release of the backlog from courts reopening after COVID-19. All others contributed $5.1 million and $6.9 million of net favorable loss development for the nine months ended September 30, 2022 and 2021 respectively.

11. Debt

Debt Redemption

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

12. Accumulated Other Comprehensive Income

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

			Three Months Ended September 30, 2022
			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 June 30, 2022			$	(367.5)					$	(370.1)					$	11.1					$	(95.7)					$	(822.2)
Change in accumulated other comprehensive income (loss) before reclassifications			(51.4)						(221.5)						—						0.4						(272.5)
Amounts reclassified from accumulated other comprehensive income (loss)			—						12.2						(0.6)						(1.8)						9.8
Net current-period other comprehensive income (loss)			(51.4)						(209.3)						(0.6)						(1.4)						(262.7)
Balance at September 30, 2022			$	(418.9)					$	(579.4)					$	10.5					$	(97.1)					$	(1,084.9)
			Three Months Ended September 30, 2021
			Foreign currency translation adjustment						Net unrealized gains on investments						Net unrealized gains on derivative transactions						Unamortized net losses on Pension Plans						Accumulated other comprehensive income
Balance at June 30, 2021			$	(274.8)					$	974.5					$	13.5					$	(109.2)					$	604.0
Change in accumulated other comprehensive income (loss) before reclassifications			(23.4)						(44.6)						—						0.3						(67.7)
Amounts reclassified from accumulated other comprehensive income (loss)			(0.3)						(618.5)						(0.6)						(1.0)						(620.4)
Net current-period other comprehensive income (loss)			(23.7)						(663.1)						(0.6)						(0.7)						(688.1)

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

Balance at September 30, 2021			$	(298.5)					$	311.4					$	12.9					$	(109.9)					$	(84.1)
			Nine Months Ended September 30, 2022
			Foreign currency translation adjustment						Net unrealized gains (losses) on investments						Net unrealized gains on derivative transactions						Unamortized net losses on Pension Plans						Accumulated other comprehensive loss
Balance at December 31, 2021			$	(326.9)					$	256.6					$	12.4					$	(92.1)					$	(150.0)
Change in accumulated other comprehensive income (loss) before reclassifications			(92.0)						(874.3)						—						0.4						(965.9)
Amounts reclassified from accumulated other comprehensive income (loss) (1)			—						38.3						(1.9)						(5.4)						31.0
Net current-period other comprehensive income (loss)			(92.0)						(836.0)						(1.9)						(5.0)						(934.9)
Balance at September 30, 2022			$	(418.9)					$	(579.4)					$	10.5					$	(97.1)					$	(1,084.9)
			Nine Months Ended September 30, 2021
			Foreign currency translation adjustment						Net unrealized gains on investments						Net unrealized gains on derivative transactions						Unamortized net losses on Pension Plans						Accumulated other comprehensive income
Balance at December 31, 2020			$	(295.6)					$	1,097.6					$	14.7					$	(106.9)					$	709.8
Change in accumulated other comprehensive income (loss) before reclassifications			(2.6)						(162.5)						—						0.6						(164.5)
Amounts reclassified from accumulated other comprehensive income (loss)			(0.3)						(623.7)						(1.8)						(3.6)						(629.4)
Net current-period other comprehensive income (loss)			(2.9)						(786.2)						(1.8)						(3.0)						(793.9)
Balance at September 30, 2021			$	(298.5)					$	311.4					$	12.9					$	(109.9)					$	(84.1)

The following tables summarize the reclassifications out of accumulated other comprehensive income (“AOCI”) for the periods indicated:

Details about accumulated other comprehensive income components						Amount reclassified from accumulated other comprehensive income												Affected line item in the statement where net income is presented
						Three Months Ended September 30,
						2022						2021
Foreign currency translation adjustment						$	—					$	(0.8)					Underwriting, selling, general and administrative expenses
						—						0.5						Provision for income taxes
						$	—					$	(0.3)					Net of tax
Net unrealized losses (gains) on investments						$	15.5					$	(789.6)					Net realized losses (gains) on investments
						(3.3)						171.1						Provision for income taxes
						$	12.2					$	(618.5)					Net of tax
Net unrealized gains on derivative transactions						$	(0.7)					$	(0.7)					Interest expense
						0.1						0.1						Provision for income taxes
						$	(0.6)					$	(0.6)					Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:
Amortization of net loss						$	1.1					$	1.8					(1)
Amortization of prior service credit						(3.4)						(3.4)						(1)

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

Settlement loss						—						0.3						(1)
						(2.3)						(1.3)
						0.5						0.3						Provision for income taxes
						$	(1.8)					$	(1.0)					Net of tax
Total reclassifications for the period						$	9.8					$	(620.4)					Net of tax
Details about accumulated other comprehensive income components						Amount reclassified from accumulated other comprehensive income												Affected line item in the statement where net income is presented
						Nine Months Ended September 30,
						2022						2021
Foreign currency translation adjustment						$	—					$	(0.8)					Underwriting, selling, general and administrative expenses
						—						0.5						Provision for income taxes
						$	—					$	(0.3)					Net of tax
Net unrealized losses (gains) on investments						$	48.5					$	(796.1)					Net realized losses (gains) on investments
						(10.2)						172.4						Provision for income taxes
						$	38.3					$	(623.7)					Net of tax
Net unrealized gains on derivative transactions						$	(2.3)					$	(2.1)					Interest expense
						0.4						0.3						Provision for income taxes
						$	(1.9)					$	(1.8)					Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:
Amortization of net loss						$	3.3					$	5.4					(1)
Amortization of prior service credit						(10.2)						(10.2)						(1)
Settlement loss						—						0.3						(1)
						(6.9)						(4.5)
						1.5						0.9						Provision for income taxes
						$	(5.4)					$	(3.6)					Net of tax
Total reclassifications for the period						$	31.0					$	(629.4)					Net of tax

(1)These AOCI components are included in the computation of net periodic pension cost. For additional information, see Note 15.

13. Equity Transactions

Mandatory Convertible Preferred Stock (“MCPS”)

In March 2018, the Company issued 2,875,000 shares of the MCPS, with a par value of $1.00 per share, at a public offering price of $100.00 per share. Each outstanding share of MCPS converted in March 2021 into 0.9405 of common shares, or 2,703,911 common shares in total plus an immaterial amount of cash in lieu of fractional shares. The Company used a portion of its treasury stock for the common shares, using the average cost method to account for the reissuance of such shares.

Dividends on the MCPS were payable on a cumulative basis when, as and if declared, at an annual rate of 6.50% of the liquidation preference of $100.00 per share. The Company paid preferred stock dividends of $4.7 million for the nine months ended September 30, 2021.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

14. Earnings Per Common Share

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

			Three Months Ended September 30,												Nine Months Ended September 30,
			2022						2021						2022						2021
Numerator
Net income from continuing operations			$	7.3					$	151.0					$	208.5					$	478.9
Less: Preferred stock dividends			—						—						—						(4.7)
Net income from continuing operations attributable to common stockholders			7.3						151.0						208.5						474.2
Less: Common stock dividends paid			(36.7)						(38.5)						(112.7)						(118.5)
Undistributed earnings			$	(29.4)					$	112.5					$	95.8					$	355.7
Net income from continuing operations attributable to common stockholders			$	7.3					$	151.0					$	208.5					$	474.2
Add: Net income from discontinued operations			—						728.8						—						762.0
Net income attributable to common stockholders			$	7.3					$	879.8					$	208.5					$	1,236.2
Denominator
Weighted average common shares outstanding used in basic per common share calculations			53,717,373						59,126,313						54,693,799						59,769,690
Incremental common shares from:
PSUs			345,887						352,918						425,887						371,793
ESPP			3,345						233						5,164						—
MCPS			—						—						—						713,838
Weighted average common shares outstanding used in diluted per common share calculations			54,066,605						59,479,464						55,124,850						60,855,321
Earnings per common share - Basic
Distributed earnings			$	0.68					$	0.65					$	2.06					$	1.98
Undistributed earnings			(0.54)						1.91						1.75						5.96
Net income from continuing operations			0.14						2.56						3.81						7.94
Net income from discontinued operations			—						12.32						—						12.74
Net income attributable to common stockholders			$	0.14					$	14.88					$	3.81					$	20.68
Earnings per common share - Diluted
Distributed earnings			$	0.68					$	0.65					$	2.04					$	1.95
Undistributed earnings			(0.54)						1.89						1.74						5.92
Net income from continuing operations			0.14						2.54						3.78						7.87
Net income from discontinued operations			—						12.25						—						12.52
Net income attributable to common stockholders			$	0.14					$	14.79					$	3.78					$	20.39

Average PSUs totaling 66,144 and 3,289 for the three months ended September 30, 2022 and 2021, respectively, were anti-dilutive and thus not included in the computation of diluted EPS under the treasury stock method. Average PSUs totaling 59,669 and 1,650 for the nine months ended September 30, 2022 and 2021, respectively, were anti-dilutive and thus not included in the computation of diluted EPS under the treasury stock method.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

15. Retirement and Other Employee Benefits

The Company and its subsidiaries participate in a non-contributory, qualified defined benefit pension plan (“Assurant Pension Plan”) covering substantially all employees prior to closing to new hires on January 1, 2014. The Company also has various non-contributory, non-qualified supplemental plans covering certain employees, including the Assurant Executive Pension Plan and the Assurant Supplemental Executive Retirement Plan. The qualified and non-qualified plans are referred to as “Pension Benefits” unless otherwise noted. In addition, the Company provides certain life and health care benefits (“Retirement Health Benefits”) for retired employees and their dependents. The Pension Benefits and Retirement Health Benefits (together, the “Plans”) were frozen on March 1, 2016.

In February 2020, the Company amended the Retirement Health Benefits to terminate effective December 31, 2024 (the “Termination Date”). Benefits will be paid up to the Termination Date. The Retirement Health Benefits obligations were re-measured using a discount rate of 1.55%, selected based on a cash flow analysis using a bond yield curve as of February 29, 2020, and the fair market value of the Retirement Health Benefits assets as of February 29, 2020. The remeasurement resulted in a reduction to the Retirement Health Benefits obligations of $65.6 million and a corresponding prior service credit in AOCI, which will be reclassified from AOCI as it is amortized in the net periodic benefit cost over the remaining period until the Termination Date.

The following tables present the components of net periodic benefit cost for the Plans for the three and nine months ended September 30, 2022 and 2021:

			Qualified Pension Benefits												Unfunded Non-qualified Pension Benefits												Retirement Health Benefits
			For the Three Months Ended September 30,												For the Three Months Ended September 30,												For the Three Months Ended September 30,
			2022						2021						2022						2021						2022						2021
Interest cost			$	4.1					$	3.5					$	0.3					$	0.3					$	—					$	0.1
Expected return on plan assets			(6.9)						(6.8)						—						—						(0.3)						(0.4)
Amortization of prior service credit			—						—						—						—						(3.4)						(3.4)
Amortization of net loss (gain)			0.8						1.2						0.5						0.8						(0.2)						(0.2)
Settlement loss			—						—						1.8						0.3						—						—
Net periodic benefit cost			$	(2.0)					$	(2.1)					$	2.6					$	1.4					$	(3.9)					$	(3.9)
			Qualified Pension Benefits												Unfunded Nonqualified Pension Benefits												Retirement Health Benefits
			For the Nine Months Ended September 30,												For the Nine Months Ended September 30,												For the Nine Months Ended September 30,
			2022						2021						2022						2021						2022						2021
Interest cost			$	12.5					$	10.5					$	1.0					$	0.9					$	0.1					$	0.1
Expected return on plan assets			(20.7)						(20.6)						—						—						(1.0)						(1.2)
Amortization of prior service credit			—						—						—						—						(10.2)						(10.2)
Amortization of net loss (gain)			2.3						3.6						1.6						2.4						(0.6)						(0.4)
Settlement loss			—						—						1.8						0.3						—						—
Net periodic benefit cost			$	(5.9)					$	(6.5)					$	4.4					$	3.6					$	(11.7)					$	(11.7)

The Assurant Pension Plan funded status was $70.5 million at September 30, 2022 and $74.8 million at December 31, 2021 (based on the fair value of the assets compared to the accumulated benefit obligation). This equates to a 112% and 110% funded status at September 30, 2022 and December 31, 2021, respectively. During the nine months ended September 30, 2022, no cash was contributed to the Assurant Pension Plan. Due to the Assurant Pension Plan’s current funded status, no additional cash is expected to be contributed to the Assurant Pension Plan over the remainder of 2022.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

16. Commitments and Contingencies

Letters of Credit

In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which the Company is the reinsurer. These letters of credit are supported by commitments under which the Company is required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. The Company had $7.0 million and $7.2 million of letters of credit outstanding as of September 30, 2022 and December 31, 2021, 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 estimate can be made of any possible loss or range of loss in excess of the accrual. Although the Company cannot predict the outcome of any pending legal or regulatory proceeding, or the potential losses, fines, penalties or equitable relief, if any, that may result, it is possible that such outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, on the basis of currently available information, management does not believe that the pending matters are likely to have a material adverse effect, individually or in the aggregate, on the Company’s financial condition.

17. Revision of Prior Period Financial Statements

The Company revised its prior period financial statements for an error related to reinsurance of claims and benefits payable within the Connected Living business unit in the Global Lifestyle segment occurring in late 2018 through first quarter 2022 that resulted in an understatement of policyholder benefits and an overstatement of net income. See Note 2 for additional information. In addition, the Company has corrected other unrelated immaterial errors which were previously recorded in the periods in which the Company identified them.

A summary of revisions to our previously reported financial statements is presented below (in millions, except for per share data).

Revised Consolidated Balance Sheet

									As of December 31, 2021
															As Reported			Adjustment			As Revised
Reinsurance recoverables															$	6,178.9		$	2.3		$	6,181.2
Other Assets															692.1			6.8			698.9
Total assets															33,911.5			9.1			33,920.6
Claims and benefits payable															1,595.9			8.9			1,604.8
Reinsurance balances payable															420.4			25.8			446.2
Total liabilities															28,421.8			34.7			28,456.5
Retained Earnings															4,066.8			(25.6)			4,041.2
Total Assurant, Inc. stockholders’ equity															5,489.7			(25.6)			5,464.1
Total equity															5,489.7			(25.6)			5,464.1
Total liabilities and equity															33,911.5			9.1			33,920.6

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

Revised Consolidated Statements of Operations

			Three Months Ended September 30, 2021												Nine Months Ended September 30, 2021
			As Reported			Adjustment			As Revised						As Reported			Adjustment			As Revised
Policyholder benefits			$	614.2		$	3.2		$	617.4					$	1,681.2		$	3.0		$	1,684.2
Underwriting, general and administrative expenses			818.3			0.1			818.4						2,301.2			5.5			2,306.7
Total benefits, losses and expenses			2,446.3			3.3			2,449.6						6,991.5			8.5			7,000.0
Income from continuing operations before income tax expense			191.5			(3.3)			188.2						621.2			(8.5)			612.7
Income tax expense			37.9			(0.7)			37.2						134.4			(0.6)			133.8
Net income from continuing operations			153.6			(2.6)			151.0						486.8			(7.9)			478.9
Net income			882.4			(2.6)			879.8						1,248.8			(7.9)			1,240.9
Net income attributable to stockholders			882.4			(2.6)			879.8						1,248.8			(7.9)			1,240.9
Net income attributable to common stockholders			882.4			(2.6)			879.8						1,244.1			(7.9)			1,236.2
Basic earnings per share from continuing operations			2.60			(0.04)			2.56						8.07			(0.13)			7.94
Basic earnings per share attributable to common stockholders			14.92			(0.04)			14.88						20.81			(0.13)			20.68
Diluted earnings per share from continuing operations			2.58			(0.04)			2.54						8.00			(0.13)			7.87
Diluted earnings per share attributable to common stockholders			14.83			(0.04)			14.79						20.52			(0.13)			20.39

Revised Consolidated Statements of Comprehensive Income

			Three Months Ended September 30, 2021												Nine Months Ended September 30, 2021
			As Reported			Adjustment			As Revised						As Reported			Adjustment			As Revised
Net Income			$	882.4		$	(2.6)		$	879.8					$	1,248.8		$	(7.9)		$	1,240.9
Total comprehensive income			194.3			(2.6)			191.7						454.9			(7.9)			447.0
Total comprehensive income attributable to stockholders			194.3			(2.6)			191.7						454.9			(7.9)			447.0

Revised Consolidated Statements of Changes in Equity

			Three Months Ended September 30, 2021												Nine Months Ended September 30, 2021
			As Reported			Adjustment			As Revised						As Reported			Adjustment			As Revised
Beginning equity			$	5,908.4		$	(20.5)		$	5,887.9					$	5,954.8		$	(15.2)		$	5,939.6
Net Income			882.4			(2.6)			879.8						1,248.8			(7.9)			1,240.9
Ending equity			5,744.4			(23.1)			5,721.3						5,744.4			(23.1)			5,721.3

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

(in millions, except number of shares and per share amounts)

Revised Consolidated Statement of Cash Flows

			Nine Months Ended September 30, 2021
			As Reported			Adjustment			As Revised
Operating activities
Net Income Attributable to Stockholders			$	1,248.8		$	(7.9)		$	1,240.9
Change in insurance policy reserves and expenses			1,427.8			(2.0)			1,425.8
Change in reinsurance recoverable			(517.7)			(1.0)			(518.7)
Change in reinsurance balance payable			31.2			6.0			37.2
Change in deferred acquisition costs and value of business acquired			(712.1)			5.5			(706.6)
Change in taxes receivable			(122.7)			(0.7)			(123.4)
Other			(17.1)			0.1			(17.0)
Net cash provided by operating activities			527.0			—			527.0

18. Subsequent Event

On November 1, 2022, the Company acquired American Lease Insurance Agency Corporation (“ALI”), a managing general agency headquartered in the Commonwealth of Massachusetts, and its captive subsidiary, The Equipment Lease Reinsurance Company Ltd, licensed in Turks and Caicos, for a total base price of $59.8 million in cash. ALI is a provider of property and liability insurance products for commercial equipment and vehicles that are leased or financed.