Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the annual audited consolidated financial statements for the year ended December 31, 2022 and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited consolidated financial statements for the three and six months ended June 30, 2023 and accompanying notes (the “Consolidated Financial Statements”) included elsewhere in this Quarterly Report on Form 10-Q (this “Report”). The following discussion and analysis covers the three and six months ended June 30, 2023 (“Second Quarter 2023” and “Six Months 2023”) and the three and six months ended June 30, 2022 (“Second Quarter 2022” and “Six Months 2022”).

Some of the statements in this Report, including our business and financial plans and any statements regarding our anticipated future financial performance, business prospects, growth and operating strategies and similar matters, may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these statements by the use of words such as “outlook,” “objective,” “will,” “may,” “can,” “anticipates,” “expects,” “estimates,” “projects,” “intends,” “plans,” “believes,” “targets,” “forecasts,” “potential,” “approximately,” and the negative version of those words and other words and terms with a similar meaning. Any forward-looking statements contained in this Report are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that our future plans, estimates or expectations will be achieved. Our actual results might differ materially from those projected in the forward-looking statements. We undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments. The following factors could cause our actual results to differ materially from those currently estimated by management:

(i)the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or if they disintermediate us, or if those parties face financial, reputational or regulatory issues;

(ii)significant competitive pressures, changes in customer preferences and disruption;

(iii)the failure to execute our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce;

(iv)the failure to find suitable acquisitions at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively or identify new areas for organic growth;

(v)our inability to recover should we experience a business continuity event;

(vi)the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;

(vii)risks related to our international operations;

(viii)declines in the value and availability of mobile devices, and export compliance or other risks in our mobile business;

(ix)our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;

(x)risks associated with joint ventures, franchises and investments in which we share ownership and management with third parties;

(xi)the impact of catastrophe and non-catastrophe losses, including as a result of climate change and the current inflationary environment;

(xii)negative publicity relating to our business, industry or clients;

(xiii)the impact of general economic, financial market and political conditions and conditions in the markets in which we operate, including the current inflationary environment;

(xiv)the adequacy of reserves established for claims and our inability to accurately predict and price for claims and other costs;

(xv)a decline in financial strength ratings of our insurance subsidiaries or in our corporate senior debt ratings;

(xvi)fluctuations in exchange rates, including in the current environment;

(xvii)an impairment of goodwill or other intangible assets;

(xviii)the failure to maintain effective internal control over financial reporting;

(xix)unfavorable conditions in the capital and credit markets;

(xx)a decrease in the value of our investment portfolio, including due to market, credit and liquidity risks, and changes in interest rates;

(xxi)an impairment in the value of our deferred tax assets;

(xxii)the unavailability or inadequacy of reinsurance coverage and the credit risk of reinsurers, including those to whom we have sold business through reinsurance;

(xxiii)the credit risk of some of our agents, third-party administrators and clients;

(xxiv)the inability of our subsidiaries to pay sufficient dividends to the holding company and limitations on our ability to declare and pay dividends or repurchase shares;

(xxv)limitations in the analytical models we use to assist in our decision-making;

(xxvi)the failure to effectively maintain and modernize our information technology systems and infrastructure, or the failure to integrate those of acquired businesses;

(xxvii)breaches of our information technology systems or those of third parties with whom we do business, or the failure to protect the security of data in such systems, including due to cyberattacks and as a result of working remotely;

(xxviii)the costs of complying with, or the failure to comply with, extensive laws and regulations to which we are subject, including those related to privacy, data security, data protection or tax;

(xxix)the impact of litigation and regulatory actions;

(xxx)reductions or deferrals in the insurance premiums we charge;

(xxxi)changes in insurance, tax and other regulations, including the Inflation Reduction Act of 2022;

(xxxii)volatility in our common stock price and trading volume; and

(xxxiii)employee misconduct.

For additional information on factors that could affect our actual results, please refer to “Critical Factors Affecting Results” below and in Item 7 of our 2022 Annual Report, and “Item 1A—Risk Factors” below and in our 2022 Annual Report.

Reportable Segments

As of June 30, 2023, we had three reportable segments which are defined based on the manner in which the Company’s chief operating decision maker, our Chief Executive Officer (“CEO”), reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered:

• Global Lifestyle: includes mobile device solutions, extended service products and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection, leased and financed solutions and related services (referred to as “Global Automotive”);

• Global Housing: includes lender-placed and voluntary homeowners insurance and manufactured housing insurance, and lender-placed flood insurance (referred to as “Homeowners”); and renters insurance and related and other products (referred to as “Renters and Other”); and

• Corporate and Other: includes corporate employee-related expenses and activities of the holding company.

We define Adjusted EBITDA, our segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, non-core operations (which consists of certain businesses which we have fully exited or expect to fully exit, including the long-tail commercial liability businesses (sharing economy and small commercial businesses), as well as certain legacy long-duration insurance policies), restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities), Assurant Health runoff operations, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, as well as other highly variable or unusual items.

Executive Summary

Summary of Financial Results

Consolidated net income increased $104.1 million to $156.3 million for Second Quarter 2023 from $52.2 million for Second Quarter 2022. The increase was primarily due to higher earnings within Global Housing and a decrease in net unrealized losses, partially offset by lower Global Lifestyle earnings.

Global Lifestyle Adjusted EBITDA decreased $24.0 million, or 11%, to $197.0 million for Second Quarter 2023 from $221.0 million for Second Quarter 2022, from lower Global Automotive and Connected Living results, including the absence of

a $12.9 million gain from the sale of a real estate joint venture partnership in Second Quarter 2022. Excluding the real estate joint venture partnership gain, underlying Global Lifestyle Adjusted EBITDA declined $11.1 million, or 5%, mainly from ongoing elevated claims costs in Global Automotive and weaker results in Asia Pacific and Europe within Connected Living. This decrease was partially offset by higher investment income across Global Lifestyle and modest growth in extended service contracts and mobile device protection results in North America.

Global Lifestyle net earned premiums, fees and other income increased $96.3 million, or 5%, to $2.11 billion for Second Quarter 2023 from $2.01 billion for Second Quarter 2022, driven by prior period sales in Global Automotive. Connected Living increased modestly from growth in extended service contracts and North American mobile subscribers, partially offset by an approximately $58.4 million impact from previously disclosed mobile program contract changes as well as runoff mobile programs.

Global Housing Adjusted EBITDA increased $93.6 million, or 153%, to $154.6 million for Second Quarter 2023 from $61.0 million for Second Quarter 2022, primarily due to significant growth in Homeowners from higher lender-placed net earned premiums and lower non-catastrophe loss experience, including a $40.0 million year-over-year decrease in prior period reserve development. Second Quarter 2023 included $13.4 million of reportable catastrophes, compared to $20.3 million in the prior year period.

Global Housing net earned premiums, fees and other income increased $70.2 million, or 15%, to $536.6 million for Second Quarter 2023 from $466.4 million for Second Quarter 2022, largely driven by Homeowners from increases in lender-placed policies in-force, average insured values and premium rates.

Corporate and Other Adjusted EBITDA was $(28.5) million for Second Quarter 2023 compared to $(24.9) million for Second Quarter 2022. The change in results was primarily due to lower net investment income from lower asset balances.

Critical Factors Affecting Results

Our results depend on, among other things, the appropriateness of our product pricing, underwriting, the accuracy of our reserving methodology for future policyholder benefits and claims, the frequency and severity of reportable and non-reportable catastrophes, returns on and values of invested assets, our investment income and our ability to realize greater operational efficiencies and manage our expenses. Our results also depend on our ability to profitably grow our businesses, including our Connected Living and Global Automotive businesses, and the performance in our Homeowners business. Factors affecting these items, including conditions in the financial markets, the global economy, political conditions and the markets in which we operate, fluctuations in exchange rates, interest rates and inflation, including the current period of inflationary pressures which have impacted claims costs, may have a material adverse effect on our results of operations or financial condition. For more information on these and other factors that could affect our results, see “Item 1A—Risk Factors” below and in our 2022 Annual Report, and “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Factors Affecting Results” in our 2022 Annual Report.

Our results may be impacted by our ability to continue to grow in the markets in which we operate, including in our Connected Living and Global Automotive businesses, which will be impacted by our ability to provide a superior digital-first customer experience, including from our investments in technology and digital initiatives, and capitalize on the smart home opportunity. Our mobile business is subject to volatility in mobile device trade-in volumes and margins based on the actual and anticipated timing of the release of new devices and carrier promotional programs, as well as to changes in consumer preferences. Our Homeowners revenues will be impacted by changes in the housing market. In addition, across many of our businesses, we must respond to the threat of disruption and competition for talent, which has increased due to labor shortages and wage inflation. See “Item 1A—Risk Factors—Business, Strategic and Operational Risks—Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations”, “—Our mobile business is subject to the risk of declines in the value and availability of mobile devices in our inventory, and to export compliance and other risks” and “—The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce” in our 2022 Annual Report.

Critical Accounting Policies and Estimates

Our 2022 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies and estimation process described in the 2022 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for Second Quarter 2023.

Recent Accounting Pronouncements

For a discussion of recent accounting pronouncements, see Note 3 to the Consolidated Financial Statements included elsewhere in this Report.

Results of Operations

Assurant Consolidated

The table below presents information regarding our consolidated results of operations for the periods indicated:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
			2023						2022						2023						2022
Revenues:
Net earned premiums			$	2,343.0					$	2,168.9					$	4,608.5					$	4,305.3
Fees and other income			295.7						325.2						578.4						647.6
Net investment income			112.9						92.0						218.1						178.3
Net realized losses on investments and fair value changes to equity securities			(20.0)						(76.4)						(30.6)						(138.8)
Total revenues			2,731.6						2,509.7						5,374.4						4,992.4
Benefits, losses and expenses:
Policyholder benefits			632.5						600.0						1,278.1						1,090.0
Underwriting, selling, general and administrative expenses			1,867.6						1,811.7						3,690.8						3,602.3
Interest expense			27.2						27.2						54.2						54.1
Loss (gain) on extinguishment of debt			—						0.9						(0.1)						0.9
Total benefits, losses and expenses			2,527.3						2,439.8						5,023.0						4,747.3
Income before provision for income taxes			204.3						69.9						351.4						245.1
Provision for income taxes			48.0						17.7						81.5						43.9
Net income			$	156.3					$	52.2					$	269.9					$	201.2

For the Three Months Ended June 30, 2023 Compared to the Three Months Ended June 30, 2022

Net income increased $104.1 million to $156.3 million for Second Quarter 2023 from $52.2 million for Second Quarter 2022, primarily due to higher earnings from Global Housing, driven by significant growth in our Homeowners business from higher lender-placed net earned premiums, and a $42.7 million decrease in after-tax net unrealized losses from changes in the fair value of equity securities. The increase was partially offset by lower earnings from Global Lifestyle, primarily driven by lower Global Automotive results from ongoing elevated claims costs.

For the Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022

Net income increased $68.7 million, or 34%, to $269.9 million for Six Months 2023 from $201.2 million for Six Months 2022, primarily driven by a $84.4 million decrease in after-tax net unrealized losses from changes in the fair value of equity securities and higher earnings from our Homeowners business within Global Housing. The increase was partially offset by lower earnings from Global Lifestyle, due to declines across Global Automotive and Connected Living, and a $29.5 million increase in reportable catastrophes due to severe weather and tornado events.

Global Lifestyle

The table below presents information regarding the Global Lifestyle segment’s results of operations for the periods indicated:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
			2023						2022						2023						2022
Revenues
Net earned premiums			$	1,840.3					$	1,722.4					$	3,628.4					$	3,422.8
Fees and other income			268.6						290.2						520.8						578.4
Net investment income			80.9						65.8						157.6						123.2
Total revenues			2,189.8						2,078.4						4,306.8						4,124.4
Benefits, losses and expenses
Policyholder benefits			402.3						334.2						773.3						645.1
Underwriting, selling, general and administrative expenses			1,590.5						1,523.2						3,137.6						3,031.6
Total benefits, losses and expenses			1,992.8						1,857.4						3,910.9						3,676.7
Global Lifestyle Adjusted EBITDA			$	197.0					$	221.0					$	395.9					$	447.7
Net earned premiums, fees and other income:
Connected Living			$	1,079.2					$	1,070.2					$	2,105.8					$	2,147.6
Global Automotive			1,029.7						942.4						2,043.4						1,853.6
Total			$	2,108.9					$	2,012.6					$	4,149.2					$	4,001.2
Net earned premiums, fees and other income:
Domestic			$	1,660.1					$	1,544.8					$	3,269.9					$	3,081.1
International			448.8						467.8						879.3						920.1
Total			$	2,108.9					$	2,012.6					$	4,149.2					$	4,001.2

For the Three Months Ended June 30, 2023 Compared to the Three Months Ended June 30, 2022

Adjusted EBITDA decreased $24.0 million, or 11%, to $197.0 million for Second Quarter 2023 from $221.0 million for Second Quarter 2022, primarily driven by the absence of a $12.9 million gain from the sale of a real estate joint venture partnership in Second Quarter 2022, ongoing elevated claims costs in Global Automotive, including higher parts and labor costs due to inflation and unfavorable loss experience in select ancillary auto products, as well as weaker Connected Living results in Asia Pacific and Europe, including the impact of foreign exchange. The decline in Global Lifestyle was partially offset by higher net investment income across Global Lifestyle, primarily due to higher yields, and modest growth in extended service contracts and mobile device protection results in North America.

Total revenues increased $111.4 million, or 5%, to $2.19 billion for Second Quarter 2023 from $2.08 billion for Second Quarter 2022. Net earned premiums increased $117.9 million, or 7%, primarily driven by continued organic growth from prior period sales in our U.S. Global Automotive business across all distribution channels and growth in extended service contracts and mobile subscribers in North America. This increase was partially offset by the run-off of certain global mobile programs, a mobile program contract change that resulted in lower retention of premiums net of reinsurance and the impact of foreign exchange. Net investment income increased $15.1 million, or 23%, primarily due to higher yields on fixed maturity securities, cash and short-term investments, partially offset by the absence of a gain from the sale of a real estate joint venture partnership in Second Quarter 2022. The increase in total revenues was partially offset by a decrease in fees and other income of $21.6 million, or 7%, mainly due to a mobile program contract change related to our in-store mobile service and repair business.

Total benefits, losses and expenses increased $135.4 million, or 7%, to $1.99 billion for Second Quarter 2023 from $1.86 billion for Second Quarter 2022. Policyholder benefits increased $68.1 million, or 20%, primarily due to ongoing higher claims costs in our Global Automotive business, including higher parts and labor costs as well as unfavorable loss experience in select domestic ancillary products. This was partially offset by a mobile program contract change that resulted in lower retention of losses net of reinsurance. Underwriting, selling, general and administrative expenses increased $67.3 million, or 4%, primarily due to higher commission expenses from growth across the Global Automotive and Connected Living businesses, partially offset by lower cost of sales mainly due to a mobile program contract change related to our in-store mobile service and repair business, the run-off of certain global mobile programs and the impact of foreign exchange.

For the Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022

Adjusted EBITDA decreased $51.8 million, or 12%, to $395.9 million for Six Months 2023 from $447.7 million for Six Months 2022, primarily due to ongoing elevated claims costs in Global Automotive, as described above, weaker Connected Living results in Asia Pacific and Europe, including the impact of foreign exchange, the absence of a $17.0 million gain from the sales of real estate joint venture partnerships in Six Months 2022, and lower volumes in our domestic mobile trade-in and upgrade programs, due to the timing and structure of carrier promotions. The decline in Global Lifestyle was partially offset by higher net investment income across both Global Automotive and Connected Living.

Total revenues increased $182.4 million, or 4%, to $4.31 billion for Six Months 2023 from $4.12 billion for Six Months 2022. Net earned premiums increased $205.6 million, or 6%, primarily driven by continued organic growth from prior period sales in our U.S. Global Automotive business across all distribution channels and growth in extended service contracts and domestic mobile subscribers. This increase was partially offset by the run-off of certain global mobile programs, the impact of foreign exchange and a mobile program contract change that resulted in lower retention of premiums net of reinsurance. Net investment income increased $34.4 million, or 28%, primarily due to higher yields on fixed maturity securities, cash and short-term investments, partially offset by the absence of a gain from the sales of real estate joint venture partnerships in Six Months 2022. The increase in total revenues was partially offset by a decrease in fees and other income of $57.6 million, or 10%, mainly due to a mobile program contract change related to our in-store mobile service and repair business.

Total benefits, losses and expenses increased $234.2 million, or 6%, to $3.91 billion for Six Months 2023 from $3.68 billion for Six Months 2022. Policyholder benefits increased $128.2 million, or 20%, primarily due to ongoing elevated claims costs in our Global Automotive business, as described above, partially offset by a mobile program contract change that resulted in lower retention of losses net of reinsurance. Underwriting, selling, general and administrative expenses increased $106.0 million, or 3%, primarily due to higher commission expenses from growth across the Global Automotive and Connected Living businesses, partially offset by a mobile program contract change related to our in-store mobile service and repair business, as well as the impact of foreign exchange.

Global Housing

The table below presents information regarding the Global Housing segment’s results of operations for the periods indicated:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
			2023						2022						2023						2022
Revenues
Net earned premiums			$	504.5					$	431.6					$	979.5					$	855.1
Fees and other income			32.1						34.8						62.4						68.6
Net investment income			25.2						17.9						46.4						36.8
Total revenues			561.8						484.3						1,088.3						960.5
Benefits, losses and expenses
Policyholder benefits			207.8						212.5						466.7						375.5
Underwriting, selling, general and administrative expenses			199.4						210.8						398.6						419.6
Total benefits, losses and expenses			407.2						423.3						865.3						795.1
Global Housing Adjusted EBITDA			$	154.6					$	61.0					$	223.0					$	165.4
Impact of reportable catastrophes			$	13.4					$	20.3					$	62.9					$	26.5
Net earned premiums, fees and other income
Homeowners			$	412.3					$	344.1					$	803.7					$	681.5
Renters and Other			124.3						122.3						238.2						242.2
Total			$	536.6					$	466.4					$	1,041.9					$	923.7

For the Three Months Ended June 30, 2023 Compared to the Three Months Ended June 30, 2022

Adjusted EBITDA increased $93.6 million, or 153%, to $154.6 million for Second Quarter 2023 from $61.0 million for Second Quarter 2022, mainly due to growth in Homeowners from higher lender-placed policies in force, average insured values and premium rates, lower non-catastrophe loss experience, including a $40.0 million decrease in non-catastrophe prior period reserve development, higher net investment income, a $6.9 million decrease in reportable catastrophes and lower catastrophe reinsurance costs. Pre-tax reportable catastrophes for Second Quarter 2023 decreased $6.9 million to $13.4 million, compared to $20.3 million for Second Quarter 2022.

Total revenues increased $77.5 million, or 16%, to $561.8 million for Second Quarter 2023 from $484.3 million for Second Quarter 2022. Net earned premiums increased $72.9 million, or 17%, primarily driven by our Homeowners business from higher lender-placed policies in force, average insured values and premium rates, partially offset by exits from certain international markets. Net investment income increased $7.3 million, or 41%, primarily due to higher yields on fixed maturity securities, cash and short-term investments, partially offset by the absence of a gain from the sale of a real estate joint venture partnership in Second Quarter 2022. The increase in total revenues was partially offset by a $2.7 million, or 8%, decrease in fees and other income, mainly driven by a decline in Renters and Other from lower installment fees.

Total benefits, losses and expenses decreased $16.1 million, or 4%, to $407.2 million for Second Quarter 2023 from $423.3 million for Second Quarter 2022. Underwriting, selling, general and administrative expenses decreased $11.4 million, or 5%, primarily due to exits from certain international markets and a discretionary benefit from the Federal Emergency Management Agency (“FEMA”) related to the National Flood Insurance Program (“NFIP”). Policyholder benefits decreased $4.7 million, or 2%, due to more favorable non-catastrophe prior period development and lower catastrophe losses, partially offset by higher current period lender-placed non-catastrophe losses from business growth and higher severity and frequency.

For the Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022

Adjusted EBITDA increased $57.6 million, or 35%, to $223.0 million for Six Months 2023 from $165.4 million for Six Months 2022, mainly due to growth in Homeowners from higher lender-placed policies in force, average insured values and premium rates, a $36.4 million increase in reportable catastrophes due to severe weather and tornado events, and higher net investment income.

Total revenues increased $127.8 million, or 13%, to $1.09 billion for Six Months 2023 from $960.5 million for Six Months 2022. Net earned premiums increased $124.4 million, or 15%, primarily driven by our Homeowners business from higher lender-placed policies in force, average insured values and premium rates, partially offset by exits from certain international markets. Net investment income increased $9.6 million, or 26%, primarily due to higher yields on fixed maturity securities, cash and short-term investments, partially offset by the absence of gains from the sales of real estate joint venture partnerships in Six Months 2022. The increase in total revenues was partially offset by a $6.2 million, or 9%, decrease in fees and other income, mainly driven by a decline in Renters and Other from lower installment fees.

Total benefits, losses and expenses increased $70.2 million, or 9%, to $865.3 million for Six Months 2023 from $795.1 million for Six Months 2022. Policyholder benefits increased $91.2 million, or 24%, due to higher non-catastrophe loss experience, in part due to inflation, and higher catastrophe losses. The increase in total benefits, losses and expenses was partially offset by a $21.0 million, or 5%, decrease in underwriting, selling, general and administrative expenses, primarily due to exits from certain international markets and lower expenses related to the NFIP due to higher reimbursements for processing flood claims for Hurricane Ian and a discretionary benefit from FEMA.

Corporate and Other

The tables below present information regarding the Corporate and Other’s segment results of operations for the periods indicated:

			For the Three Months Ended June 30,												For the Six Months Ended June 30,
			2023						2022						2023						2022
Revenues
Net earned premiums			$	—					$	—					$	—					$	—
Fees and other income			—						0.1						0.1						0.4
Net investment income			3.8						6.8						8.3						15.3
Total revenues			3.8						6.9						8.4						15.7
Benefits, losses and expenses
Policyholder benefits			—						0.4						0.1						0.4
General and administrative expenses			32.3						31.4						61.2						62.4
Total benefits, losses and expenses			32.3						31.8						61.3						62.8
Corporate and Other Adjusted EBITDA			$	(28.5)					$	(24.9)					$	(52.9)					$	(47.1)

For the Three Months Ended June 30, 2023 Compared to the Three Months Ended June 30, 2022

Adjusted EBITDA was $(28.5) million for Second Quarter 2023 compared to $(24.9) million for Second Quarter 2022. The change in results was primarily due to lower net investment income, mostly due to lower invested assets from the use of the Global Preneed sale proceeds in Second Quarter 2022 for share repurchases.

Total revenues decreased $3.1 million, or 45%, to $3.8 million for Second Quarter 2023 from $6.9 million for Second Quarter 2022, primarily driven by a decrease in net investment income, mostly due to lower invested assets from the use of the Global Preneed sale proceeds in Second Quarter 2022 for share repurchases, partially offset by higher cash yields.

Total benefits, losses and expenses increased $0.5 million, or 2%, to $32.3 million for Second Quarter 2023 from $31.8 million for Second Quarter 2022, primarily driven by higher employee-related expenses.

For the Six Months Ended June 30, 2023 Compared to the Six Months Ended June 30, 2022

Adjusted EBITDA was $(52.9) million for Six Months 2023 compared to $(47.1) million for Six Months 2022. The change in results was primarily due to lower net investment income, mostly due to lower invested assets from the use of the Global Preneed sale proceeds in Six Months 2022 for share repurchases, partially offset by lower general and administrative expenses.

Total revenues decreased $7.3 million, or 46%, to $8.4 million for Six Months 2023 from $15.7 million for Six Months 2022, primarily driven by a decrease in net investment income of $7.0 million, or 46%, mostly due to lower invested assets from the use of the Global Preneed sale proceeds in Six Months 2022 for share repurchases, partially offset by higher cash yields.

Total benefits, losses and expenses decreased $1.5 million, or 2%, to $61.3 million for Six Months 2023 from $62.8 million for Six Months 2022, primarily driven by the reduction of expenses from a subsidiary that was sold in Second Quarter 2022, partially offset by higher employee-related expenses.

Investments

We had total investments of $7.99 billion and $7.52 billion as of June 30, 2023 and December 31, 2022, respectively. Net unrealized losses on our fixed maturity securities portfolio decreased by $44.1 million during Six Months 2023, from $637.1 million as of December 31, 2022 to a net unrealized loss of $593.0 million as of June 30, 2023, primarily due to a decrease in Treasury yields.

The following table shows the credit quality of our fixed maturity securities portfolio as of the dates indicated:

			Fair value as of
Fixed Maturity Securities by Credit Quality			June 30, 2023												December 31, 2022
Aaa / Aa / A			$	3,791.4					57.3		%				$	3,615.2					57.5		%
Baa			2,446.4						37.0		%				2,295.4						36.5		%
Ba			297.1						4.5		%				305.2						4.9		%
B and lower			82.9						1.2		%				67.9						1.1		%
Total			$	6,617.8					100.0		%				$	6,283.7					100.0		%

The following table shows the major categories of net investment income for the periods indicated:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2022						2023						2022
Fixed maturity securities			$	81.0					$	66.0					$	159.6					$	128.3
Equity securities			3.7						3.8						7.6						7.5
Commercial mortgage loans on real estate			4.3						3.4						8.4						7.3
Short-term investments			3.4						0.8						6.1						1.3
Other investments			5.2						17.8						8.2						35.0
Cash and cash equivalents			19.4						3.8						36.2						6.1
Total investment income			117.0						95.6						226.1						185.5
Investment expenses			(4.1)						(3.6)						(8.0)						(7.2)
Net investment income			$	112.9					$	92.0					$	218.1					$	178.3

Net investment income increased $20.9 million, or 23%, to $112.9 million for Second Quarter 2023 from $92.0 million for Second Quarter 2022, primarily driven by higher yields on fixed maturity securities, short-term investments, and cash equivalents, partially offset by a decrease in income from other investments due to lower real estate joint venture sales.

Net realized losses on investments and fair value changes to equity securities were $20.0 million for Second Quarter 2023 compared to $76.4 million for Second Quarter 2022. Second Quarter 2023 was primarily driven by sales of fixed maturity securities, net unrealized losses in equity securities and impairments in fixed maturities and other investments accounted for under the measurement alternative. Second Quarter 2022 was primarily driven by $62.5 million of net unrealized losses from changes in fair value of equity securities that were driven by a $47.8 million decrease in net unrealized gains from four equity positions that went public in 2021 through special purpose acquisition company (“SPAC”) mergers. The net realized losses were also driven by $22.6 million of net realized losses on sales of fixed maturity securities, partially offset by $8.4 million of net realized gains on sales of equity securities.

Net investment income increased $39.8 million, or 22%, to $218.1 million for Six Months 2023 from $178.3 million for Six Months 2022, primarily driven by higher yields on fixed maturity securities, short-term investments, and cash equivalents, partially offset by a decrease in income from other investments due to lower real estate joint venture sales.

Net realized losses on investments and fair value changes to equity securities were $30.6 million for Six Months 2023 compared to $138.8 million for Six Months 2022. Six Months 2023 was primarily driven by sales of fixed maturity securities, net unrealized losses in equity securities and impairments in fixed maturities and other investments accounted for under the measurement alternative. Six Months 2022 was primarily driven by $108.5 million loss on common stocks primarily related to SPACs and $39.3 million loss on preferred stocks primarily related to higher yields.

As of June 30, 2023, we owned $40.6 million of securities guaranteed by financial guarantee insurance companies. Included in this amount was $37.4 million of municipal securities, whose credit rating was A+ with and without the guarantee.

For more information on our investments, see Notes 6 and 7 to the Consolidated Financial Statements included elsewhere in this Report.

Catastrophe Reinsurance Program

In June 2023, we finalized our 2023 property catastrophe reinsurance program. 2023 reinsurance premiums for the total program are estimated to be approximately $200.0 million pre-tax compared to approximately $189.0 million pre-tax for 2022, predominantly reflecting increased lender-placed exposure as a result of higher average insured values compared to 2022. Coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best. Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.

The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $1.28 billion of coverage in excess of a $125.0 million retention for a first event, which drops to $100.0 million for a second and third event. All layers of the program allow for one automatic reinstatement. When combined with the Florida Hurricane Catastrophe Fund, the U.S. program is covered for gross Florida losses of up to approximately $1.58 billion.

The 2023 catastrophe reinsurance program also includes Caribbean protection of up to $55.0 million, in excess of a $5.0 million retention.

Liquidity and Capital Resources

Management believes that we will have sufficient liquidity to satisfy our needs over the next twelve months, including the ability to pay interest on our debt and dividends on our common stock.

Regulatory Requirements

Assurant, Inc. is a holding company and, as such, has limited direct operations of its own. Our assets consist primarily of the capital stock of our subsidiaries. Accordingly, our future cash flows depend upon the availability of dividends and other statutorily permissible payments from our subsidiaries, such as payments under our tax allocation agreement and under management agreements with our subsidiaries. Our subsidiaries’ ability to pay such dividends and make such other payments is regulated by the states and territories in which our subsidiaries are domiciled. These dividend regulations vary from jurisdiction to jurisdiction and by type of insurance provided by the applicable subsidiary, but generally require our insurance subsidiaries to maintain minimum solvency requirements and limit the amount of dividends these subsidiaries can pay to the holding company. See “Item 1—Business—Regulation—U.S. Insurance Regulation” and “Item 1A—Risk Factors—Legal and Regulatory Risks—Changes in insurance regulation may reduce our profitability and limit our growth” in our 2022 Annual Report. Along with solvency regulations, the primary driver in determining the amount of capital used for dividends from insurance subsidiaries is the level of capital needed to maintain desired financial strength ratings from A.M. Best Company (“A.M. Best”). For the year ending December 31, 2023, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us, under applicable laws and regulations currently in effect and without prior regulatory approval, is approximately $344.7 million. In addition, our international and non-insurance subsidiaries provide additional sources of dividends.

Regulators or rating agencies could become more conservative in their methodology and criteria, increasing capital requirements for our insurance subsidiaries or the enterprise. For further information on our ratings and the risks of ratings downgrades, see “Item 1—Business—Ratings” and “Item 1A—Risk Factors—Financial Risks—A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition” in our 2022 Annual Report.

Holding Company

As of June 30, 2023, we had approximately $495.0 million in holding company liquidity, which was $270.0 million above our targeted minimum level of $225.0 million. The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of corporate operating losses and interest expenses. We use the term “holding company liquidity” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc., out of a total of $580.0 million of holding company investment securities and cash, which we are not otherwise holding for a specific purpose as of the balance sheet date. We can use such assets for stock repurchases, stockholder dividends, acquisitions and other corporate purposes.

Dividends or returns of capital paid by our subsidiaries, net of infusions of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $291.5 million and $549.5 million for Six Months 2023 and Twelve Months 2022, respectively. We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to fund investments and

acquisitions, and to repurchase our common stock. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions.

Dividends and Repurchases

During Six Months 2023, we made common stock repurchases and paid common stock dividends of $96.7 million. We paid dividends of $0.70 per common share on June 20, 2023 to stockholders of record as of May 30, 2023. Any determination to pay future dividends will be at the discretion of the Board and will be dependent upon various factors, including: our subsidiaries’ payments of dividends and other statutorily permissible payments to us; our results of operations and cash flows; our financial condition and capital requirements; general business conditions and growth prospects; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and any other factors the Board deems relevant. The Credit Facility (as defined below) also contains limitations on our ability to pay dividends to our stockholders and repurchase capital stock if we are in default, or such dividend payments or repurchases would cause us to be in default, of our obligations thereunder. In addition, if we elect to defer the payment of interest on our 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25% Subordinated Notes due January 2061 (refer to “—Senior and Subordinated Notes” below), we generally may not make payments on or repurchase any shares of our capital stock.

During Six Months 2023, we repurchased 157,491 shares of our outstanding common stock at a cost of $20.0 million, exclusive of commissions. In May 2021, the Board authorized a share repurchase program for up to $900.0 million of our outstanding common stock. As of June 30, 2023, $254.5 million aggregate cost at purchase remained unused under the repurchase authorization. The timing and the amount of future repurchases will depend on various factors, including those listed above.

Assurant Subsidiaries

The primary sources of funds for our subsidiaries consist of premiums and fees collected, proceeds from the sales and maturity of investments and net investment income. Cash is primarily used to pay insurance claims, agent commissions, operating expenses and taxes. We generally invest our subsidiaries’ funds in order to generate investment income.

We conduct periodic asset liability studies to measure the duration of our insurance liabilities, to develop optimal asset portfolio maturity structures for our significant lines of business and ultimately to assess that cash flows are sufficient to meet the timing of cash needs. These studies are conducted in accordance with formal company-wide Asset Liability Management guidelines.

To complete a study for a particular line of business, models are developed to project asset and liability cash flows and balance sheet items under a varied set of plausible economic scenarios. These models consider many factors including the current investment portfolio, the required capital for the related assets and liabilities, our tax position and projected cash flows from both existing and projected new business. For risks related to modeling, see “Item 1A – Risk Factors – Financial Risks –Actual results may differ materially from the analytical models we use to assist in our decision-making in key areas such as pricing, catastrophe risks, reserving and capital management.” in our 2022 Annual Report.

Alternative asset portfolio structures are analyzed for significant lines of business. An investment portfolio maturity structure is then selected from these profiles given our return hurdle and risk appetite. Scenario testing of significant liability assumptions and new business projections is also performed.

Our liabilities generally have limited policyholder optionality, which means that the timing of payments is generally insensitive to the interest rate environment. In addition, our investment portfolio is largely comprised of highly liquid public fixed-maturity securities with a sufficient component of such securities invested that are near maturity which may be sold with minimal risk of loss to meet cash needs.

Generally, our subsidiaries’ premiums, fees and investment income, along with planned asset sales and maturities, provide sufficient cash to pay claims and expenses. However, there may be instances when unexpected cash needs arise in excess of that available from usual operating sources. In such instances, we have several options to raise needed funds, including selling assets from the subsidiaries’ investment portfolios, using holding company cash (if available), issuing commercial paper, or drawing funds from the Credit Facility.

Senior and Subordinated Notes

The following table shows the principal amount and carrying value of our outstanding debt, less unamortized discount and issuance costs as applicable, as of June 30, 2023 and December 31, 2022:

			June 30, 2023												December 31, 2022
			Principal Amount						Carrying Value						Principal Amount						Carrying Value
4.20% Senior Notes due September 2023			$	50.0					$	50.0					$	225.0					$	224.7
6.10% Senior Notes due February 2026			175.0						173.3						—						—
4.90% Senior Notes due March 2028			300.0						298.0						300.0						297.8
3.70% Senior Notes due February 2030			350.0						347.7						350.0						347.6
2.65% Senior Notes due January 2032			350.0						346.9						350.0						346.7
6.75% Senior Notes due February 2034			275.0						272.6						275.0						272.5
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048			400.0						396.8						400.0						396.5
5.25% Subordinated Notes due January 2061			250.0						244.1						250.0						244.1
Total Debt									$	2,129.4											$	2,129.9

2026 Senior Notes: In February 2023, we issued senior notes with an aggregate principal amount of $175.0 million, which bear interest at a rate of 6.1% per year, mature in February 2026 and were issued at a 0.035% discount to the public (the “2026 Senior Notes”). Interest on the 2026 Senior Notes is payable semi-annually in arrears on February 27 and August 27 of each year, beginning on August 27, 2023. Prior to January 27, 2026, we may redeem all or part of the 2026 Senior Notes at any time at a redemption price equal to 100% of the outstanding principal amount of the 2026 Senior Notes to be redeemed, plus a make-whole premium as described in the 2026 Senior Notes and accrued and unpaid interest up to the redemption date. On or after that date, we may redeem all or part of the 2026 Senior Notes at any time at a redemption price equal to 100% of the outstanding principal amount of the 2026 Senior Notes to be redeemed, plus accrued and unpaid interest up to the redemption date.

In anticipation of the issuance of the 2026 Senior Notes, we entered into a derivative transaction to hedge the risk associated with changes in interest rates up to the date the 2026 Senior Notes were issued. We determined that the derivative qualified for cash flow hedge accounting and recognized a deferred gain of $1.4 million upon settlement which was reported through other comprehensive income. The deferred gain will be recognized as a reduction in interest expense related to the 2026 Senior Notes on an effective yield basis.

In March 2023, we used the net proceeds from the sale of the 2026 Senior Notes (and available cash on hand) to redeem $175.0 million of the $225.0 million then outstanding aggregate principal amount of our 4.20% Senior Notes due September 2023 plus accrued and unpaid interest up to the redemption date. In connection with the redemption, we recognized a net gain on extinguishment of debt of $0.1 million. The net gain resulted from the recognition of a previously deferred gain from the termination of a hedge of the interest rate risk associated with the redeemed notes, partially offset by the immediate recognition of the remaining deferred debt issuance costs relating to the redeemed notes.

In the next five years, we have three debt maturities in September 2023, February 2026 and March 2028 when the remaining 2023 Senior Notes, the 2026 Senior Notes and the 2028 Senior Notes become due and payable.

Credit Facility and Commercial Paper Program

We have a $500.0 million five-year senior unsecured revolving credit facility (the “Credit Facility”) with a syndicate of banks arranged by JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association. The Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and letters of credit from a sole issuing bank in an aggregate amount of $500.0 million, which may be increased up to $700.0 million. The Credit Facility is available until December 2026, provided we are in compliance with all covenants. The Credit Facility has a sublimit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for our commercial paper program or for general corporate purposes.

We made no borrowings using the Credit Facility during Six Months 2023 and no loans were outstanding as of June 30, 2023.

Our commercial paper program requires us to maintain liquidity facilities either in an available amount equal to any outstanding notes from the program or in an amount sufficient to maintain the ratings assigned to the notes issued from the program. Our commercial paper is rated AMB-1 by A.M. Best, P-2 by Moody’s and A-2 by S&P. This program is currently backed up by the Credit Facility, of which $499.8 million out of the $500.0 million was available as of June 30, 2023, due to $0.2 million of letters of credit outstanding.

We did not use the commercial paper program during Six Months 2023 and there were no amounts relating to the commercial paper program outstanding as of June 30, 2023. Our subsidiaries do not maintain commercial paper or other borrowing facilities.

Cash Flows

We monitor cash flows at the consolidated and entity levels. Cash flow forecasts at the consolidated and entity levels are provided on a monthly basis, and we use trend and variance analyses to project future cash needs making adjustments to the forecasts when needed.

The table below shows our net cash flows for the periods indicated:

			For the Six Months Ended June 30,
Net cash provided by (used in):			2023						2022
Operating activities			$	445.0					$	(328.1)
Investing activities			(483.8)						107.0
Financing activities			(100.4)						(624.9)
Effect of exchange rate changes on cash and cash equivalents			4.2						(26.8)
Net change in cash			$	(135.0)					$	(872.8)

We typically generate operating cash inflows from premiums collected from our insurance products, fees received for services and income received from our investments, while outflows generally consist of policy acquisition costs, benefits paid and operating expenses. These net cash flows are then invested to support the obligations of our insurance products and required capital supporting these products. Our cash flows from operating activities are affected by the timing of premiums, fees, and investment income received and expenses paid.

Net cash provided by operating activities was $445.0 million for Six Months 2023 compared to net cash used in operating activities of $328.1 million for Six Months 2022. The change in net operating cash flows was largely attributable to our mobile business operations, primarily from higher collections of premiums and fees due to timing, and a decrease in payments to vendors for the acquisition of mobile devices used to meet insurance claims or generate profits through sales to third parties.

Net cash used in investing activities was $483.8 million for Six Months 2023 compared to net cash provided by investing activities of $107.0 million for Six Months 2022. The change in net investing cash flows was primarily driven by the investment of net cash provided by operating activities and the reinvestment of proceeds from sales and maturities of investments in higher yielding fixed maturities during the period. Also contributing to the change was an increase in purchases of short-term investments due to the timing of working capital needs.

Net cash used in financing activities was $100.4 million for Six Months 2023 compared to net cash used in financing activities of $624.9 million for Six Months 2022. The change in net financing cash flows was primarily due to lower share repurchases during Six Months 2023. In addition, during Six Months 2022, we redeemed $75.0 million of the $300.0 million then outstanding principal amount of our 4.20% Senior Notes due September 2023.

The table below shows our cash outflows for interest and dividends for the periods indicated:

			For the Six Months Ended June 30,
			2023						2022
Interest paid on debt			$	52.8					$	55.4
Common stock dividends			76.7						76.0
Total			$	129.5					$	131.4

Letters of Credit

In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which we are the reinsurer. These letters of credit are supported by commitments under which we are required to indemnify the financial

institution issuing the letter of credit if the letter of credit is drawn. We had $2.7 million of letters of credit outstanding as of June 30, 2023 and December 31, 2022.