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 March 31, 2024

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.)

260 Interstate North Circle SE

Atlanta, Georgia 30339

(770) 763-1000

(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 May 3, 2024 was 51,985,804.

ASSURANT, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2024

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 March 31, 2024 and December 31, 2023			2
			Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2024 and 2023			3
			Consolidated Statements of Comprehensive Income (unaudited) for the three months ended March 31, 2024 and 2023			4
			Consolidated Statements of Changes in Equity (unaudited) for the three months ended March 31, 2024 and 2023			5
			Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2024 and 2023			6
			Notes to Consolidated Financial Statements (unaudited)			8
2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			31
3.			Quantitative and Qualitative Disclosures About Market Risk			43
4.			Controls and Procedures			43
			PART II OTHER INFORMATION
1.			Legal Proceedings			44
1A.			Risk Factors			44
2.			Unregistered Sales of Equity Securities and Use of Proceeds			44
5.			Other Information			44
6.			Exhibits			45
			Signatures			46

Assurant, Inc.

Consolidated Balance Sheets (unaudited)

			March 31, 2024						December 31, 2023
			(in millions, except number of shares and per share amounts)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost - $7,617.9 and $7,292.4 at March 31, 2024 and December 31, 2023, respectively)			$	7,214.1					$	6,912.1
Equity securities at fair value			243.9						223.0
Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $5.0 and $4.0 at March 31, 2024 and December 31, 2023, respectively)			332.5						328.7
Short-term investments			192.8						258.1
Other investments			486.8						499.0
Total investments			8,470.1						8,220.9
Cash and cash equivalents			1,281.9						1,627.4
Premiums and accounts receivable (net of allowances for credit losses of $8.5 and $9.0 at March 31, 2024 and December 31, 2023, respectively)			2,002.7						2,265.6
Reinsurance recoverables (net of allowances for credit losses of $4.6 and $4.8 at March 31, 2024 and December 31, 2023, respectively)			6,589.1						6,649.2
Accrued investment income			96.6						97.0
Deferred acquisition costs			9,978.9						9,967.2
Property and equipment, net			706.1						685.8
Goodwill			2,608.5						2,608.8
Value of business acquired			46.8						83.9
Other intangible assets, net			562.6						567.1
Other assets (net of allowances for credit losses of $0.7 at March 31, 2024 and December 31, 2023)			882.1						862.3
Total assets			$	33,225.4					$	33,635.2
Liabilities
Future policy benefits and expenses			$	521.5					$	487.2
Unearned premiums			20,031.1						20,110.4
Claims and benefits payable			2,015.4						1,989.2
Commissions payable			499.0						542.8
Reinsurance balances payable			390.0						430.1
Funds held under reinsurance			311.8						392.7
Accounts payable and other liabilities (including allowances for credit losses of $6.4 and $8.3 at March 31, 2024 and December 31, 2023, respectively, for the unsecured portion of the high deductible recoverables)			2,455.4						2,792.7
Debt			2,081.2						2,080.6
Total liabilities			28,305.4						28,825.7
Commitments and contingencies (Note 14)
Stockholders’ equity
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 54,319,141 and 54,252,083 shares issued and 52,023,052 and 51,955,994 shares outstanding at March 31, 2024 and December 31, 2023, respectively			0.6						0.6
Additional paid-in capital			1,659.2						1,668.5
Retained earnings			4,194.2						4,028.2
Accumulated other comprehensive loss			(811.2)						(765.0)
Treasury stock, at cost; 2,296,089 shares at March 31, 2024 and December 31, 2023			(122.8)						(122.8)
Total equity			4,920.0						4,809.5
Total liabilities and equity			$	33,225.4					$	33,635.2

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Consolidated Statements of Operations (unaudited)

			Three Months Ended March 31,
			2024						2023
			(in millions, except number of shares and per share amounts)
Revenues
Net earned premiums			$	2,376.5					$	2,265.5
Fees and other income			385.7						282.7
Net investment income			126.7						105.2
Net realized losses on investments (including $8.0 and $2.5 of impairment-related losses for the three months ended March 31, 2024 and 2023, respectively) and fair value changes to equity securities			(8.8)						(10.6)
Total revenues			2,880.1						2,642.8
Benefits, losses and expenses
Policyholder benefits			623.1						645.6
Underwriting, selling, general and administrative expenses			1,937.3						1,823.2
Interest expense			26.8						27.0
Gain on extinguishment of debt			—						(0.1)
Total benefits, losses and expenses			2,587.2						2,495.7
Income before income tax expense			292.9						147.1
Income tax expense			56.5						33.5
Net income			$	236.4					$	113.6
Earnings Per Common Share
Basic			$	4.50					$	2.12
Diluted			$	4.47					$	2.12
Share Data
Weighted average common shares outstanding used in basic per common share calculations			52,531,865						53,492,413
Plus: Dilutive securities			340,389						205,749
Weighted average common shares outstanding used in diluted per common share calculations			52,872,254						53,698,162

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Consolidated Statements of Comprehensive Income (unaudited)

			Three Months Ended March 31,
			2024						2023
			(in millions)
Net income			$	236.4					$	113.6
Other comprehensive income (loss):
Change in unrealized losses on securities, net of taxes of $4.2 and $(20.8) for the three months ended March 31, 2024 and 2023, respectively			(32.2)						79.2
Change in unrealized gains on derivative transactions, net of taxes of $0.9 and $0.0 for the three months ended March 31, 2024 and 2023, respectively			(3.2)						0.1
Change in foreign currency translation, net of taxes of $(0.1) and $2.3 for the three months ended March 31, 2024 and 2023, respectively			(8.5)						10.0
Change in pension and postretirement unrecognized net periodic benefit cost, net of taxes of $0.7 and $0.7 for the three months ended March 31, 2024 and 2023, respectively			(2.3)						(2.6)
Total other comprehensive income (loss)			(46.2)						86.7
Total comprehensive income			$	190.2					$	200.3

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Consolidated Statements of Changes in Equity (unaudited)

						Three Months Ended March 31, 2024
									Common Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock												Total
						(in millions)
Balance at December 31, 2023									$	0.6					$	1,668.5					$	4,028.2					$	(765.0)					$	(122.8)											$	4,809.5
Stock plan exercises									—						7.3						—						—						—												7.3
Stock plan compensation expense									—						14.5						—						—						—												14.5
Common stock dividends ($0.72 per share)									—						—						(37.4)						—						—												(37.4)
Acquisition of common stock									—						(31.1)						(33.0)						—						—												(64.1)
Net income									—						—						236.4						—						—												236.4
Other comprehensive loss									—						—						—						(46.2)						—												(46.2)
Balance at March 31, 2024									$	0.6					$	1,659.2					$	4,194.2					$	(811.2)					$	(122.8)											$	4,920.0

						Three Months Ended March 31, 2023
									Common Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Treasury Stock												Total
						(in millions)
Balance at December 31, 2022									$	0.6					$	1,637.8					$	3,699.3					$	(986.2)					$	(122.8)											$	4,228.7
Stock plan exercises									—						7.4						—						—						—												7.4
Stock plan compensation expense									—						12.5						—						—						—												12.5
Common stock dividends ($0.70 per share)									—						—						(37.0)						—						—												(37.0)
Acquisition of common stock									—						(15.5)						—						—						—												(15.5)
Net income									—						—						113.6						—						—												113.6
Other comprehensive income									—						—						—						86.7						—												86.7
Balance at March 31, 2023									$	0.6					$	1,642.2					$	3,775.9					$	(899.5)					$	(122.8)											$	4,396.4

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Consolidated Statements of Cash Flows (unaudited)

			Three Months Ended March 31,
			2024						2023
			(in millions)
Operating activities
Net income			$	236.4					$	113.6
Adjustments to reconcile net income to net cash provided by operating activities:
Noncash revenues, expenses, gains and losses included in net income from operations:
Deferred tax expense (benefit)			19.6						(12.3)
Depreciation and amortization			50.6						48.1
Net realized losses on investments, including impairment losses			8.8						10.6
Gain on extinguishment of debt			—						(0.1)
Stock based compensation expense			14.5						12.5
Restructuring costs			—						5.1
Changes in operating assets and liabilities:
Insurance policy reserves and expenses			(36.2)						(277.4)
Premiums and accounts receivable			265.2						67.5
Commissions payable			(41.2)						(85.7)
Reinsurance recoverable			93.6						360.0
Reinsurance balance payable			(39.3)						51.9
Funds withheld under reinsurance			(80.3)						7.3
Deferred acquisition costs and value of business acquired			16.8						50.5
Taxes (receivable) payable			(129.3)						25.7
Other assets and other liabilities			(275.1)						(110.7)
Other			(21.6)						(7.0)
Net cash provided by operating activities			82.5						259.6
Investing activities
Sales of:
Fixed maturity securities available for sale			320.8						354.0
Equity securities			3.8						0.3
Other invested assets			42.2						13.7
Maturities, calls, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale			103.6						67.1
Commercial mortgage loans on real estate			5.0						3.5
Purchases of:
Fixed maturity securities available for sale			(766.1)						(590.5)
Equity securities			(18.5)						(2.7)
Commercial mortgage loans on real estate			(9.9)						(14.8)
Other invested assets			(13.3)						(15.2)
Property and equipment and other			(50.8)						(48.4)
Subsidiaries, net of cash transferred			(10.2)						(0.3)
Change in short-term investments			65.2						3.8
Other			—						0.1
Net cash used in investing activities			(328.2)						(229.4)
Financing activities
Issuance of debt, net of issuance costs			—						173.2
Repayment of debt			—						(175.0)

Assurant, Inc.

Consolidated Statements of Cash Flows (unaudited)

			Three Months Ended March 31,
			2024						2023
Acquisition of common stock			(46.1)						—
Common stock dividends paid			(37.4)						(37.0)
Employee stock purchases and withholdings			(12.7)						(4.2)
Net cash used in financing activities			(96.2)						(43.0)
Effect of exchange rate changes on cash and cash equivalents			(3.6)						1.7
Change in cash and cash equivalents			(345.5)						(11.1)
Cash and cash equivalents at beginning of period			1,627.4						1,536.7
Cash and cash equivalents at end of period			$	1,281.9					$	1,525.6

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			Page Number
1. Nature of Operations			8
2. Basis of Presentation			8
3. Recent Accounting Pronouncements			9
4. Segment Information			11
5. Contract Revenues			13
6. Investments			14
7. Fair Value Disclosures			18
8. Deferred Acquisition Costs			21
9. Reserves			22
10. Accumulated Other Comprehensive Income			26
11. Earnings Per Common Share			27
12. Retirement and Other Employee Benefits			28
13. Restructuring and Related Impairment Charges			29
14. Commitments and Contingencies			30

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. The Company operates in North America, Latin America, Europe and Asia Pacific through two operating segments: Global Lifestyle and Global Housing. Through its Global Lifestyle segment, the Company provides mobile device solutions, extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection services, commercial equipment services and other related services (referred to as “Global Automotive”). Through its Global Housing segment, the Company provides lender-placed homeowners, manufactured housing and flood insurance, as well as voluntary manufactured housing, condominium and homeowners insurance (referred to as “Homeowners”); and renters insurance and other products (referred to as “Renters and Other”).

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

2. 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 consolidated balance sheet as of March 31, 2024, the consolidated statements of operations, consolidated statements of comprehensive income and consolidated statements of changes in equity for the three months ended March 31, 2024 and 2023 and the consolidated statements of cash flows for the three months ended March 31, 2024 and 2023 are 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 and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation.

Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 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, 2023.

Restricted Cash

Restricted cash and cash equivalents of $36.5 million and $43.6 million as of March 31, 2024 and December 31, 2023, respectively, principally related to cash deposits involving insurance programs with restrictions as to withdrawal and use, are classified within cash and cash equivalents in the consolidated balance sheets.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

3. Recent Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB Accounting Standards Codification. The Company considers the applicability and impact of all ASUs. The following table provides a description of ASUs recently issued by the FASB and the impact of their adoption on the Company’s consolidated financial statements.

Adopted

There were no ASUs adopted by the Company during the quarterly period ended March 31, 2024.

Not Yet Adopted

ASUs issued but not yet adopted as of March 31, 2024, that are currently being assessed and may or may not have a material impact on the Company’s consolidated financial statements or disclosures are included below. ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

Standard			Summary of the Standard			Effective date Method of Adoption			Impact of the Standard on the Company’s Financial Statements
ASU 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures			The guidance improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. Key disclosure updates include: *•*On an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. *•*On an annual and interim basis, an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss. *•*All current annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280, Segment Reporting on an interim basis. *•*Clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment’s profit or loss measures (or the single reported measure, if only one is disclosed) should be the measure that is most consistent with the measurement principles used in measuring the corresponding amounts in the public entity’s consolidated financial statements. *•*Require the disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. *•*Require that a public entity that has a single reportable segment provide all the disclosures required by the amendments in the ASU and all existing segment disclosures in Topic 280. The guidance is applied retrospectively to all periods presented in the financial statements, unless it is impracticable.			December 31, 2024 and for interim periods thereafter			The Company is assessing the impact of adopting this standard as of December 31, 2024. The amended guidance is expected to have no impact on the Company’s consolidated financial statements and to impact the Company’s segment information disclosures.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

Standard			Summary of the Standard			Effective date Method of Adoption			Impact of the Standard on the Company’s Financial Statements
ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures			The guidance improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures.			January 1, 2025 (with early adoption permitted)			The Company is assessing the adoption of this standard as of January 1, 2025. The amended guidance is expected to have no impact on the Company’s consolidated financial statements and insignificant impact on the Company’s income tax disclosures.

4. Segment Information

As of March 31, 2024, the Company had two reportable operating segments, Global Lifestyle and Global Housing. In addition, the Company reports the Corporate and Other segment, which includes corporate employee-related expenses and activities of the holding company. The Company defines Adjusted EBITDA, the segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, non-core operations (defined below), 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.

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:

			Three Months Ended March 31,
			2024						2023
Adjusted EBITDA by segment:
Global Lifestyle			$	207.7					$	198.9
Global Housing			192.5						68.4
Corporate and Other			(29.5)						(24.4)
Reconciling items to consolidated net income:
Interest expense			(26.8)						(27.0)
Depreciation expense			(30.6)						(26.4)
Amortization of purchased intangible assets			(17.6)						(18.7)
Net realized losses on investments and fair value changes to equity securities			(8.8)						(10.6)
Non-core operations (1)			(2.6)						(12.2)
Restructuring costs			—						(6.4)
Assurant Health runoff operations (2)			0.4						7.5
Other adjustments			8.2						(2.0)
Total reconciling items			(77.8)						(95.8)
Income before income tax expense			292.9						147.1
Income tax expense			56.5						33.5
Net income			$	236.4					$	113.6

(1)Consists of certain businesses which the Company has fully exited or expects to fully exit, including the long-tail commercial liability businesses (sharing economy and small commercial businesses), certain legacy long-duration insurance policies and the Company’s operations in mainland China (not Hong Kong) (collectively referred to as “non-core operations”). The non-core operations do not qualify as held for sale or discontinued operations under GAAP accounting guidance and are presented as a reconciling item to consolidated net income.

(2)In first quarter 2023, the Company recorded income of $7.5 million related to a payment it received from Time Insurance Company (“TIC”) pursuant to a participation agreement that the Company had with TIC in connection with its sale by the Company in 2018. The payment related to the Company’s prior participation in the risk adjustment program introduced by the Patient Protection and Affordable Care Act of 2010.

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

			Three Months Ended March 31,
			2024						2023
Global Lifestyle:
Connected Living			$	1,140.3					$	1,026.6
Global Automotive			1,047.5						1,013.7
Total			$	2,187.8					$	2,040.3
Global Housing:
Homeowners			$	447.4					$	391.4
Renters and Other			124.8						113.9
Total			$	572.2					$	505.3

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

The following table presents total assets by segment:

			March 31, 2024						December 31, 2023
Global Lifestyle (1)			$	27,303.2					$	27,642.9
Global Housing (1)			4,160.5						4,274.5
Corporate and Other (2)			1,761.7						1,717.8
Segment assets			$	33,225.4					$	33,635.2

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

(2)Corporate and Other includes the Miami, Florida property with a carrying value of $46.0 million as of March 31, 2024 and December 31, 2023, which met held-for-sale criteria and was included in other assets. The Company has ceased depreciation of these assets which are recorded at carrying value, which is less than the estimated fair value less estimated costs to sell. During third quarter 2023, the Company submitted an agreement to a potential acquiror, which is subject to review, approval, execution and other conditions. There can be no assurance that a definitive agreement will be executed or that any transaction will be approved or consummated.

5. 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 services 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 $345.2 million and $247.2 million for Global Lifestyle and $20.6 million and $19.9 million for Global Housing for the three months ended March 31, 2024 and 2023, respectively.

Global Lifestyle

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

Contract Balances

The receivables and unearned revenue under these contracts were $224.3 million and $149.7 million, respectively, as of March 31, 2024, and $218.9 million and $155.4 million, respectively, as of December 31, 2023. 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 March 31, 2024 and 2023 that was included in unearned revenue as of December 31, 2023 and 2022 was $17.3 million and $21.9 million, respectively.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

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 March 31, 2024 and December 31, 2023, the Company had approximately $48.1 million and $47.2 million, respectively, of such intangible assets attributed to service contracts that will be expensed over the term of the client contracts.

6. 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:

			March 31, 2024
			Cost or Amortized Cost						Allowance for Credit Losses						Gross Unrealized Gains						Gross Unrealized Losses						Fair Value
Fixed maturity securities:
U.S. government and government agencies and authorities			$	62.9					$	—					$	0.3					$	(4.8)					$	58.4
States, municipalities and political subdivisions			148.5						—						0.9						(11.3)						138.1
Foreign governments			501.1						—						5.8						(15.8)						491.1
Asset-backed			925.9						—						10.6						(12.7)						923.8
Commercial mortgage-backed			376.3						—						0.8						(43.3)						333.8
Residential mortgage-backed			610.1						—						1.5						(56.6)						555.0
U.S. corporate			3,438.3						—						30.2						(229.0)						3,239.5
Foreign corporate			1,554.8						—						14.0						(94.4)						1,474.4
Total fixed maturity securities			$	7,617.9					$	—					$	64.1					$	(467.9)					$	7,214.1

			December 31, 2023
			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			$	68.9					$	—					$	0.7					$	(4.4)					$	65.2
States, municipalities and political subdivisions			159.2						—						1.2						(11.2)						149.2
Foreign governments			483.1						—						9.4						(12.7)						479.8
Asset-backed			891.4						—						5.2						(22.8)						873.8
Commercial mortgage-backed			383.1						—						0.4						(53.3)						330.2
Residential mortgage-backed			534.7						—						1.9						(50.6)						486.0
U.S. corporate			3,300.5						—						45.3						(215.4)						3,130.4
Foreign corporate			1,471.5						—						17.6						(91.6)						1,397.5
Total fixed maturity securities			$	7,292.4					$	—					$	81.7					$	(462.0)					$	6,912.1

The cost or amortized cost and fair value of fixed maturity securities as of March 31, 2024 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			$	172.4					$	172.2
Due after one year through five years			1,559.3						1,521.8
Due after five years through ten years			2,912.0						2,783.0
Due after ten years			1,061.9						924.5
Total			5,705.6						5,401.5
Asset-backed			925.9						923.8
Commercial mortgage-backed			376.3						333.8
Residential mortgage-backed			610.1						555.0
Total			$	7,617.9					$	7,214.1

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 March 31,
			2024						2023
Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities:
Fixed maturity securities			$	(14.4)					$	(4.0)
Equity securities (1)			10.1						(3.1)
Commercial mortgage loans on real estate			(1.0)						(1.5)
Other investments			4.5						0.5
Total net realized losses on investments related to sales and other and fair value changes to equity securities			(0.8)						(8.1)
Net realized losses related to impairments:
Fixed maturity securities			(0.3)						—
Other investments			(7.7)						(2.5)
Total net realized losses related to impairments			(8.0)						(2.5)
Total net realized losses on investments and fair value changes to equity securities			$	(8.8)					$	(10.6)

(1)Upward adjustments of $3.8 million for the three months ended March 31, 2024 and impairments of $7.7 million and $2.5 million for the three months ended March 31, 2024 and 2023, respectively, were realized on equity investments accounted for under the measurement alternative.

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

			Three Months Ended March 31,
			2024						2023
Net gains (losses) recognized on equity securities			$	10.1					$	(3.1)
Less: Net realized losses related to sales of equity securities			(0.1)						(0.8)
Total fair value changes to equity securities held			$	10.2					$	(2.3)

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:

			March 31, 2024						December 31, 2023
Initial cost			$	84.0					$	86.8
Cumulative upward adjustments			54.9						51.1
Cumulative downward adjustments (including impairments)			(23.1)						(17.9)
Carrying value			$	115.8					$	120.0

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities as of March 31, 2024 and December 31, 2023 were as follows:

			March 31, 2024
			Less than 12 months												12 Months or More												Total
			Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Fair Value						Unrealized Losses
Fixed maturity securities:
U.S. government and government agencies and authorities			$	5.9					$	(0.2)					$	35.7					$	(4.6)					$	41.6					$	(4.8)
States, municipalities and political subdivisions			10.3						(0.3)						85.7						(11.0)						96.0						(11.3)
Foreign governments			101.4						(1.0)						205.3						(14.8)						306.7						(15.8)
Asset-backed			99.0						(2.1)						312.2						(10.6)						411.2						(12.7)
Commercial mortgage-backed			45.8						(6.1)						237.2						(37.2)						283.0						(43.3)
Residential mortgage-backed			133.2						(3.8)						282.3						(52.8)						415.5						(56.6)
U.S. corporate			631.9						(20.3)						1,488.1						(208.7)						2,120.0						(229.0)
Foreign corporate			245.0						(6.4)						736.8						(88.0)						981.8						(94.4)
Total fixed maturity securities			$	1,272.5					$	(40.2)					$	3,383.3					$	(427.7)					$	4,655.8					$	(467.9)

			December 31, 2023
			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			$	5.2					$	(0.1)					$	43.7					$	(4.3)					$	48.9					$	(4.4)
States, municipalities and political subdivisions			3.9						(0.1)						96.5						(11.1)						100.4						(11.2)
Foreign governments			42.5						(0.5)						203.5						(12.2)						246.0						(12.7)
Asset-backed			64.0						(3.0)						404.7						(19.8)						468.7						(22.8)
Commercial mortgage-backed			66.3						(8.4)						244.2						(44.9)						310.5						(53.3)
Residential mortgage-backed			98.8						(3.5)						285.1						(47.1)						383.9						(50.6)
U.S. corporate			331.9						(14.7)						1,596.4						(200.7)						1,928.3						(215.4)
Foreign corporate			153.9						(5.6)						744.8						(86.0)						898.7						(91.6)
Total fixed maturity securities			$	766.5					$	(35.9)					$	3,618.9					$	(426.1)					$	4,385.4					$	(462.0)

Total gross unrealized losses represented approximately 10% and 11% of the aggregate fair value of the related securities as of March 31, 2024 and December 31, 2023, respectively. Approximately 9% and 8% of these gross unrealized losses had been in a continuous loss position for less than twelve months as of March 31, 2024 and December 31, 2023, respectively. The total gross unrealized losses are comprised of 3,230 and 3,096 individual securities as of March 31, 2024 and December 31, 2023, respectively. In accordance with its policy, the Company concluded that for these securities, the gross unrealized losses as of March 31, 2024 and December 31, 2023 were related to non-credit factors and therefore, did not recognize credit-related losses during the three months ended March 31, 2024. 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 March 31, 2024, approximately 35% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Texas and Maryland. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans range in size from less than $0.1 million to $5.5 million as of March 31, 2024, and from less than $0.1 million to $10.0 million as of December 31, 2023.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

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 annual net operating income to its annual 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 March 31, 2024 and December 31, 2023.

			March 31, 2024
			Origination Year
			2024						2023						2022						2021						2020						Prior						Total						% of Total
Loan to value ratios (1):
70% and less			$	9.7					$	49.5					$	42.1					$	29.4					$	—					$	63.0					$	193.7					57.4		%
71% to 80%			—						2.5						22.7						69.3						2.8						4.4						101.7						30.1		%
81% to 95%			—						—						10.9						22.5						—						5.4						38.8						11.5		%
Greater than 95%			—						—						2.0						1.3						—						—						3.3						1.0		%
Total			$	9.7					$	52.0					$	77.7					$	122.5					$	2.8					$	72.8					$	337.5					100.0		%

			March 31, 2024
			Origination Year
			2024						2023						2022						2021						2020						Prior						Total						% of Total
Debt-service coverage ratios (2):
Greater than 2.0			$	—					$	—					$	11.7					$	9.3					$	—					$	44.3					$	65.3					19.4		%
1.5 to 2.0			2.0						18.8						23.6						28.5						—						12.1						85.0						25.2		%
1.0 to 1.5			7.7						33.2						18.1						39.9						—						6.8						105.7						31.3		%
Less than 1.0			—						—						24.3						44.8						2.8						9.6						81.5						24.1		%
Total			$	9.7					$	52.0					$	77.7					$	122.5					$	2.8					$	72.8					$	337.5					100.0		%

			December 31, 2023
			Origination Year
			2023						2022						2021						2020						2019						Prior						Total						% of Total
Loan to value ratios (1):
70% and less			$	49.6					$	42.3					$	29.5					$	—					$	—					$	60.1					$	181.5					54.6		%
71% to 80%			2.5						22.7						69.6						2.8						—						4.4						102.0						30.7		%
81% to 95%			—						10.7						25.5						—						—						5.5						41.7						12.5		%
Greater than 95%			—						2.0						1.3						—						—						4.1						7.4						2.2		%
Total			$	52.1					$	77.7					$	125.9					$	2.8					$	—					$	74.1					$	332.6					100.0		%

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

			December 31, 2023
			Origination Year
			2023						2022						2021						2020						2019						Prior						Total						% of Total
Debt-service coverage ratios (2):
Greater than 2.0			$	—					$	11.8					$	9.3					$	—					$	—					$	44.9					$	66.0					19.8		%
1.5 to 2.0			18.9						23.6						28.7						—						—						12.2						83.4						25.1		%
1.0 to 1.5			33.2						18.2						40.1						—						—						7.1						98.6						29.7		%
Less than 1.0			—						24.1						47.8						2.8						—						9.9						84.6						25.4		%
Total			$	52.1					$	77.7					$	125.9					$	2.8					$	—					$	74.1					$	332.6					100.0		%

(1)Loan-to-value ratio derived from current principal amount of the loan 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 recently reported annual net operating income from property operators divided by annual debt service payments.

7. Fair Value Disclosures

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

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

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

The levels of the fair value hierarchy are described below:

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

• Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset or liability. The observable inputs are used in valuation models to calculate the fair value for the asset or liability.

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

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

The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023. 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 and other derivatives. The fair value

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

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.

			March 31, 2024
			Total						Level 1						Level 2						Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities			$	58.4					$	—					$	58.4					$	—
States, municipalities and political subdivisions			138.1						—						138.1						—
Foreign governments			491.1						—						491.1						—
Asset-backed			923.8						—						835.7						88.1
Commercial mortgage-backed			333.8						—						333.8						—
Residential mortgage-backed			555.0						—						555.0						—
U.S. corporate			3,239.5						—						3,201.0						38.5
Foreign corporate			1,474.4						—						1,467.2						7.2
Equity securities:
Mutual funds			16.5						16.5						—						—
Common stocks			17.9						17.2						0.7						—
Non-redeemable preferred stocks			209.5						—						209.5						—
Short-term investments			145.6						114.4			(2)			31.2			(3)			—
Other investments			66.9						66.8			(1)			—						0.1			(4)
Cash equivalents			681.8						670.8			(2)			11.0			(3)			—
Other assets			10.6						—						0.6			(4)			10.0			(4)
Assets held in separate accounts			11.1						7.6			(1)			3.5			(3)			—
Total financial assets			$	8,374.0					$	893.3					$	7,336.8					$	143.9
Financial Liabilities
Other liabilities			$	67.1					$	66.8		(1)			$	0.3					$	—
Liabilities related to separate accounts			11.1						7.6			(1)			3.5			(3)			—
Total financial liabilities			$	78.2					$	74.4					$	3.8					$	—

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

			December 31, 2023
			Total						Level 1						Level 2						Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities			$	65.2					$	—					$	65.2					$	—
States, municipalities and political subdivisions			149.2						—						149.2						—
Foreign governments			479.8						—						479.8						—
Asset-backed			873.8						—						791.0						82.8
Commercial mortgage-backed			330.2						—						330.2						—
Residential mortgage-backed			486.0						—						486.0						—
U.S. corporate			3,130.4						—						3,094.8						35.6
Foreign corporate			1,397.5						—						1,390.4						7.1
Equity securities:
Mutual funds			16.6						16.6						—						—
Common stocks			17.9						17.2						0.7						—
Non-redeemable preferred stocks			188.5						—						188.5						—
Short-term investments			210.1						121.6			(2)			88.5			(3)			—
Other investments			62.5						62.4			(1)			—						0.1
Cash equivalents			1,051.3						1,040.4			(2)			10.9			(3)			—
Other assets			15.8						—						—						15.8			(4)
Assets held in separate accounts			10.5						6.7			(1)			3.8			(3)			—
Total financial assets			$	8,485.3					$	1,264.9					$	7,079.0					$	141.4
Financial Liabilities
Other liabilities			$	64.2					$	62.4		(1)			$	1.8		(4)			$	—
Liabilities related to separate accounts			10.5						6.7			(1)			3.8			(3)			—
Total financial liabilities			$	74.7					$	69.1					$	5.6					$	—

(1)Primarily includes mutual funds and related obligations.

(2)Primarily includes money market funds.

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

(4)Primarily includes derivatives.

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:

			March 31, 2024
									Fair Value
			Carrying Value						Total						Level 1						Level 2						Level 3
Financial Assets
Commercial mortgage loans on real estate			$	332.5					$	319.8					$	—					$	—					$	319.8
Other investments			4.0						4.0						1.4						—						2.6
Other assets			23.6						23.6						—						—						23.6
Total financial assets			$	360.1					$	347.4					$	1.4					$	—					$	346.0
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)			$	7.1					$	7.4					$	—					$	—					$	7.4
Funds withheld under reinsurance			311.8						311.8						311.8						—						—
Debt			2,081.2						2,002.7						—						2,002.7						—
Total financial liabilities			$	2,400.1					$	2,321.9					$	311.8					$	2,002.7					$	7.4
			December 31, 2023
									Fair Value
			Carrying Value						Total						Level 1						Level 2						Level 3
Financial Assets
Commercial mortgage loans on real estate			$	328.7					$	313.7					$	—					$	—					$	313.7
Other investments			3.7						3.7						1.4						—						2.3
Other assets			26.5						26.5						—						—						26.5
Total financial assets			$	358.9					$	343.9					$	1.4					$	—					$	342.5
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)			$	7.3					$	7.8					$	—					$	—					$	7.8
Funds withheld under reinsurance			392.7						392.7						392.7						—						—
Debt			2,080.6						1,972.4						—						1,972.4						—
Total financial liabilities			$	2,480.6					$	2,372.9					$	392.7					$	1,972.4					$	7.8

(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.

8. Deferred Acquisition Costs

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

			For the Three Months Ended March 31,
			2024						2023
Beginning balance			$	9,967.2					$	9,677.1
Costs deferred			1,034.4						990.2
Amortization			(1,022.7)						(984.3)
Ending balance			$	9,978.9					$	9,683.0

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

9. 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 Three Months Ended March 31,
			2024						2023
Claims and benefits payable, at beginning of period			$	1,989.2					$	2,210.0
Less: Reinsurance ceded and other			(886.6)						(1,228.8)
Net claims and benefits payable, at beginning of period			1,102.6						981.2
Incurred losses and loss adjustment expenses related to:
Current year			664.7						652.1
Prior years			(41.6)						(6.5)
Total incurred losses and loss adjustment expenses			623.1						645.6
Paid losses and loss adjustment expenses related to:
Current year			245.5						213.8
Prior years			341.4						326.4
Total paid losses and loss adjustment expenses			586.9						540.2
Net claims and benefits payable, at end of period			1,138.8						1,086.6
Plus: Reinsurance ceded and other (1)			876.6						994.6
Claims and benefits payable, at end of period (1)			$	2,015.4					$	2,081.2

(1)Includes reinsurance recoverables and claims and benefits payable of $108.6 million and $168.3 million as of March 31, 2024 and 2023, 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 favorable loss development of $41.6 million and $6.5 million for the three months ended March 31, 2024 and 2023, respectively, as presented in the roll forward table above.

Global Lifestyle contributed $20.8 million and $17.9 million in net favorable loss development for the three months ended March 31, 2024 and 2023, respectively. The net favorable loss development in both periods was attributable to nearly all lines of business in Global Lifestyle across most of the Company’s regions with a concentration on more recent accident years and based on emerging evaluations regarding loss experience. Connected Living contributed $20.1 million of net favorable development, of which $11.2 million was from extended service contracts, $7.3 million from credit and other insurance, and $1.6 million from mobile. For extended service contracts, improvements in data quality for certain clients allowed for reserve releases and contributed to the favorable development. The favorable development for credit and other insurance was primarily from Canada and Europe. For Global Automotive, development was relatively flat as reserves have been strengthened to keep pace with rising loss costs. For the three months ended March 31, 2023 the favorable development was also primarily from Connected Living and due to similar drivers. 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 $22.0 million of net favorable loss development for the three months ended March 31, 2024 and $1.5 million of net unfavorable loss development for the three months ended March 31, 2023. The net favorable loss development for the three months ended March 31, 2024 consisted of favorable non-catastrophe development of $22.0 million

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

and flat development from prior catastrophe events. The favorable non-catastrophe development was driven by $21.2 million from lender-placed hazard primarily in accident year 2023 due to favorable frequency, easing inflation and legislative reform changes in Florida. The net unfavorable loss development for the three months ended March 31, 2023 was attributable primarily to Winter Storm Elliott as a result of higher severity than initially projected.

The sharing economy and small commercial businesses, reported within non-core operations, contributed $3.4 million and $10.7 million in net unfavorable loss development during the three months ended March 31, 2024 and 2023, respectively. The $3.4 million in net unfavorable loss development consisted of $4.3 million from sharing economy, driven by more newly reported claims than expected and an increase in the portion and amount of claims anticipated to exceed the per policy deducible. This was partially offset by $0.9 million in favorable loss development from small commercial due to the timing of reinsurance recoveries. The net unfavorable loss development for the three months ended March 31, 2023 was attributable primarily to reserve assumption increases in sharing economy related to higher frequency expectations for the number of claims closed with indemnity payment and an increase in loss adjustment expenses in the tail.

All others contributed $2.2 million and $0.8 million of net favorable loss development for the three months ended March 31, 2024 and 2023 respectively.

Long-Duration Contracts

The Company adopted the targeted improvements accounting guidance for long-duration insurance contracts as of January 1, 2023, using a modified retrospective method on liabilities for future policy benefits and expenses to January 1, 2021 for long-term care insurance contracts that have been fully reinsured. The Company also elected to not apply the amended accounting guidance to long-duration contracts of legal entities sold and derecognized before the January 1, 2023 effective date as the Company has no significant continuing involvement with them.

A remeasurement of the ending reporting period future policy benefits and expenses reserve is calculated using the current upper medium grade fixed-income corporate bond instrument yield as of the consolidated balance sheet ending period (the “current discount rate”). The current discount rate used is an externally published US corporate A index weighted average spot rate that is updated quarterly and effectively matches the duration of the expected cash flow streams of the long-term care reserves. The difference between the ending period future policy benefits and expenses reserve measured using the original discount rate and the future policy benefits and expenses reserve measured using the current discount rate is recorded in accumulated other comprehensive income (“AOCI”) in the Company’s consolidated statements of comprehensive income.

The long-term care insurance contracts are fully reinsured and there is no impact to consolidated stockholders’ equity or net income as the reserves are fully reinsured.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

The following table presents the balances and changes in the long-term care future policy benefits and expenses reserve:

			March 31, 2024						December 31, 2023
Present value of expected net premiums
Balance, beginning of period			$	36.4					$	34.2
Beginning balance at original discount rate			36.5						33.4
Effect of changes in cash flow assumptions (1)			—						1.5
Effect of actual variances from expected experience			—						3.5
Adjusted beginning of period balance			36.5						38.4
Interest accrual			0.9						2.8
Net premiums collected			(1.5)						(4.7)
Ending balance at original discount rate			35.9						36.5
Effect of changes in discount rate assumptions			1.8						(0.1)
Balance, end of period			$	37.7					$	36.4
Present value of expected future policy benefits
Balance, beginning of period			$	450.6					$	462.4
Beginning balance at original discount rate			453.0						444.4
Effect of actual variances from expected experience			—						4.4
Adjusted beginning of period balance			453.0						448.8
Experience variance (2)			(2.2)						1.0
Interest accrual			6.6						19.5
Benefit payments			(6.3)						(16.3)
Ending balance at original discount rate			451.1						453.0
Effect of changes in discount rate assumptions			36.7						(2.4)
Balance, end of period			$	487.8					$	450.6
Net future policy benefits and expenses			$	450.1					$	414.2
Related reinsurance recoverable			450.1						414.2
Net future policy benefits and expenses, after reinsurance recoverable			$	—					$	—
Weighted-average liability duration of the future policy benefits and expenses (in years)			11.9						12.0

(1)The increase in the effect of changes in cash flow assumptions is due to historical experience reflecting a decreasing trend in lapse and mortality rates on the long-term care insurance products for the year ended December 31, 2023.

(2)Experience variance includes adverse development resulting from the allocation of the premium deficiency reserve to the cohort level for issue years where net premiums exceed gross premiums.

The following table presents a reconciliation of the long-term care net future policy benefits and expenses to the future policy benefits and expenses reserve in the consolidated balance sheet:

			March 31, 2024						December 31, 2023
Long-term care			$	450.1					$	414.2
Other			71.4						73.0
Total			$	521.5					$	487.2

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

The following table presents the amount of undiscounted expected future benefit payments and expected gross premiums for the long-term care insurance contracts:

			March 31, 2024						December 31, 2023
Expected future benefits payments			$	820.8					$	829.3
Expected future gross premiums			$	66.3					$	69.4

The following table presents the amount of long-term care revenue and interest recognized in the consolidated statements of operations:

			March 31, 2024						March 31, 2023
Gross premiums			$	1.5					$	1.6
Interest expense (original discount rate)			$	5.6					$	6.3

The following table presents the weighted-average interest rate for long-term care insurance contracts:

			March 31, 2024						March 31, 2023
Interest expense (original discount rate)			5.95		%				5.95		%
Current discount rate			5.05		%				5.35		%

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

10. 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 March 31, 2024
			Foreign currency translation adjustment						Net unrealized losses on investments						Net unrealized gains on derivative transactions						Unamortized net losses on Pension Plans						Accumulated other comprehensive loss
Balance at December 31, 2023			$	(351.9)					$	(305.5)					$	8.5					$	(116.1)					$	(765.0)
Change in accumulated other comprehensive loss before reclassifications			(8.5)						(43.8)						(0.1)						—						(52.4)
Amounts reclassified from accumulated other comprehensive loss			—						11.6						(3.1)						(2.3)						6.2
Net current-period other comprehensive loss			(8.5)						(32.2)						(3.2)						(2.3)						(46.2)
Balance at March 31, 2024			$	(360.4)					$	(337.7)					$	5.3					$	(118.4)					$	(811.2)
			Three Months Ended March 31, 2023
			Foreign currency translation adjustment						Net unrealized losses on investments						Net unrealized gains on derivative transactions						Unamortized net losses on Pension Plans						Accumulated other comprehensive loss
Balance at December 31, 2022			$	(394.0)					$	(513.2)					$	9.8					$	(88.8)					$	(986.2)
Change in accumulated other comprehensive loss before reclassifications			10.0						76.0						1.1						(0.1)						87.0
Amounts reclassified from accumulated other comprehensive loss			—						3.2						(1.0)						(2.5)						(0.3)
Net current-period other comprehensive loss			10.0						79.2						0.1						(2.6)						86.7
Balance at March 31, 2023			$	(384.0)					$	(434.0)					$	9.9					$	(91.4)					$	(899.5)

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

The following tables summarize the reclassifications out of 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 March 31,
						2024						2023
Net unrealized losses on investments						$	14.7					$	4.0														Net realized losses on investments and fair value changes to equity securities
						(3.1)						(0.8)															Provision for income taxes
						$	11.6					$	3.2														Net of tax
Net unrealized (gains) losses on derivative transactions related to:
Interest rate derivatives						$	(0.7)					$	(1.3)														Interest expense
Foreign exchange derivatives						(3.2)						—															Underwriting, selling, general and administrative expenses
						(3.9)						(1.3)
						0.8						0.3															Provision for income taxes
						$	(3.1)					$	(1.0)														Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:
Amortization of net loss						$	0.3					$	0.3														(1)
Amortization of prior service credit						(3.3)						(3.4)															(1)
						(3.0)						(3.1)
						0.7						0.6															Provision for income taxes
						$	(2.3)					$	(2.5)														Net of tax
Total reclassifications for the period						$	6.2					$	(0.3)														Net of tax

(1)These AOCI components are included in the computation of net periodic pension cost. For additional information, see Note 12.

11. Earnings Per Common Share

The following table presents net income, the weighted average common shares used in calculating basic EPS and those used in calculating diluted EPS for each period presented below. Diluted EPS reflects the incremental common shares from common shares issuable upon vesting of performance share units (“PSUs”) and the purchase of shares under the Employee Stock Purchase Plan (the “ESPP”) using the treasury stock 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.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

			Three Months Ended March 31,
			2024						2023
Numerator
Net income			$	236.4					$	113.6
Less: Common stock dividends paid			(37.4)						(37.0)
Undistributed earnings			$	199.0					$	76.6
Denominator
Weighted average common shares outstanding used in basic per common share calculations			52,531,865						53,492,413
Incremental common shares from:
PSUs			340,389						205,749
Weighted average common shares outstanding used in diluted per common share calculations			52,872,254						53,698,162
Earnings per common share – Basic
Distributed earnings			$	0.71					$	0.69
Undistributed earnings			3.79						1.43
Net income			$	4.50					$	2.12
Earnings per common share – Diluted
Distributed earnings			$	0.71					$	0.69
Undistributed earnings			3.76						1.43
Net income			$	4.47					$	2.12

Average PSUs totaling 16,553 and 61,590 for the three months ended March 31, 2024 and 2023, respectively, were anti-dilutive and thus not included in the computation of diluted EPS under the treasury stock method.

12. 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 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.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

The following tables present the components of net periodic benefit cost for the Plans for the three months ended March 31, 2024 and 2023:

			Qualified Pension Benefits												Unfunded Non-qualified Pension Benefits												Retirement Health Benefits
			For the Three Months Ended March 31,												For the Three Months Ended March 31,												For the Three Months Ended March 31,
			2024						2023						2024						2023						2024						2023
Interest cost			$	6.7					$	7.0					$	0.6					$	0.6					$	—					$	0.1
Expected return on plan assets			(10.0)						(10.3)						—						—						(0.3)						(0.4)
Amortization of prior service credit			—						—						—						—						(3.3)						(3.4)
Amortization of net loss			—						—						0.3						0.3						—						—
Net periodic benefit cost			$	(3.3)					$	(3.3)					$	0.9					$	0.9					$	(3.6)					$	(3.7)

The Assurant Pension Plan funded status was $86.8 million at March 31, 2024 and $86.6 million at December 31, 2023 (based on the fair value of the assets compared to the accumulated benefit obligation). This equates to a 116% funded status at both March 31, 2024 and December 31, 2023. During the three months ended March 31, 2024, 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 2024.

13. Restructuring and Related Impairment Charges

In December 2022, the Company finalized its plan to realize greater efficiencies by continuing to simplify its business portfolio and leverage its global footprint to reduce costs. This included realigning its organizational structure and talent to support its business strategy (the “transformational plan”). The Company also accelerated its ongoing real estate consolidation to support work-from-home arrangements given its increasingly hybrid workforce (the “return to work strategy”).

In September 2023, the Company amended and extended the December 2022 plan to include additional actions within the initiatives described above, including further consolidation of its real estate portfolio and additional changes to its organizational structure. The Company now expects to be substantially complete with these actions by mid-2025.

The following table summarizes the costs by major type that are recorded in underwriting, selling, general and administrative expenses in the consolidated statements of operations for the three months ended March 31, 2024 and 2023, the estimated remaining costs to be incurred and the estimated total costs. Substantially all of the charges are expected to be cash. Restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities) are not allocated to a reportable segment.

			Costs Incurred for Three Months Ended March 31,												Estimated Remaining Costs						Estimated Total Costs
			2024						2023
Transformational plan:
Severance and other employee benefits			$	—					$	(1.6)					$	3.5					$	56.2
Total transformational plan			—						(1.6)						3.5						56.2
Return to work strategy:
Contract exit costs			—						4.9						1.1						23.1
Fixed asset impairment			—						—						—						2.3
Right-of-use asset impairment			—						3.1						—						10.2
Total return to work strategy			—						8.0						1.1						35.6
Total restructuring and impairment charges			$	—					$	6.4					$	4.6					$	91.8

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

The following table shows the rollforward of the accrued liability by major type.

			Transformational Plan						Return to Work Strategy (contract exit costs)
Balance at January 1, 2024			$	27.8					$	17.1
Cash payments			(7.8)						(2.7)
Balance at March 31, 2024			$	20.0					$	14.4

14. 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 $1.8 million and $2.9 million of letters of credit outstanding as of March 31, 2024 and December 31, 2023, 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.