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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 June 30, 2025
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 August 1, 2025 was 50,459,211.
ASSURANT, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025
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 June 30, 2025 and December 31, 2024 | 2 | |||||||
| Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2025 and 2024 | 3 | |||||||
| Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2025 and 2024 | 4 | |||||||
| Consolidated Statements of Changes in Equity (unaudited) for the three and six months ended June 30, 2025 and 2024 | 5 | |||||||
| Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2025 and 2024 | 7 | |||||||
| Notes to Consolidated Financial Statements (unaudited) | 9 | |||||||
| 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 32 | ||||||
| 3. | Quantitative and Qualitative Disclosures About Market Risk | 46 | ||||||
| 4. | Controls and Procedures | 46 | ||||||
| PART II OTHER INFORMATION | ||||||||
| 1. | Legal Proceedings | 48 | ||||||
| 1A. | Risk Factors | 48 | ||||||
| 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 48 | ||||||
| 5. | Other Information | 48 | ||||||
| 6. | Exhibits | 49 | ||||||
| Signatures | 50 |
Assurant, Inc.
Consolidated Balance Sheets (unaudited)
| June 30, 2025 | December 31, 2024 | ||||||||||
| (in millions, except number of shares and per share amounts) | |||||||||||
| Assets | |||||||||||
| Investments: | |||||||||||
| Fixed maturity securities available for sale, at fair value (amortized cost - $8,235.0 and $7,524.8 at June 30, 2025 and December 31, 2024, respectively) | $ | 8,071.8 | $ | 7,175.1 | |||||||
| Equity securities at fair value | 207.9 | 208.5 | |||||||||
| Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $4.8 and $6.5 at June 30, 2025 and December 31, 2024, respectively) | 329.8 | 342.5 | |||||||||
| Short-term investments | 316.3 | 281.6 | |||||||||
| Other investments | 592.1 | 536.8 | |||||||||
| Total investments | 9,517.9 | 8,544.5 | |||||||||
| Cash and cash equivalents | 1,486.7 | 1,807.7 | |||||||||
| Premiums and accounts receivable (net of allowances for credit losses of $9.3 and $7.2 at June 30, 2025 and December 31, 2024, respectively) | 1,931.3 | 2,054.0 | |||||||||
| Reinsurance recoverables (net of allowances for credit losses of $5.0 at June 30, 2025 and December 31, 2024) | 7,328.6 | 7,579.5 | |||||||||
| Accrued investment income | 123.8 | 130.5 | |||||||||
| Deferred acquisition costs | 10,138.5 | 9,992.8 | |||||||||
| Property and equipment, net | 811.5 | 768.3 | |||||||||
| Goodwill | 2,630.8 | 2,616.0 | |||||||||
| Value of business acquired | 6.0 | 8.0 | |||||||||
| Other intangible assets, net | 529.9 | 535.6 | |||||||||
| Other assets (net of allowances for credit losses of $0.6 at June 30, 2025 and December 31, 2024) | 1,020.9 | 983.7 | |||||||||
| Total assets | $ | 35,525.9 | $ | 35,020.6 | |||||||
| Liabilities | |||||||||||
| Future policy benefits and expenses | $ | 511.7 | $ | 536.7 | |||||||
| Unearned premiums | 20,497.2 | 20,211.4 | |||||||||
| Claims and benefits payable | 2,350.9 | 2,914.2 | |||||||||
| Commissions payable | 597.3 | 559.6 | |||||||||
| Funds held under reinsurance | 268.1 | 277.7 | |||||||||
| Accounts payable and other liabilities (including allowances for credit losses of $0.8 and $1.4 at June 30, 2025 and December 31, 2024, respectively, for the unsecured portion of the high deductible recoverables) | 3,717.8 | 3,331.2 | |||||||||
| Debt | 2,084.4 | 2,083.1 | |||||||||
| Total liabilities | 30,027.4 | 29,913.9 | |||||||||
| Commitments and contingencies (Note 13) | |||||||||||
| Stockholders’ equity | |||||||||||
| Common stock, par value $0.01 per share, 800,000,000 shares authorized, 52,827,305 and 53,129,838 shares issued and 50,531,216 and 50,833,749 shares outstanding at June 30, 2025 and December 31, 2024, respectively | 0.5 | 0.5 | |||||||||
| Additional paid-in capital | 1,684.5 | 1,686.8 | |||||||||
| Retained earnings | 4,570.9 | 4,378.3 | |||||||||
| Accumulated other comprehensive loss | (634.6) | (836.1) | |||||||||
| Treasury stock, at cost; 2,296,089 shares at June 30, 2025 and December 31, 2024 | (122.8) | (122.8) | |||||||||
| Total equity | 5,498.5 | 5,106.7 | |||||||||
| Total liabilities and equity | $ | 35,525.9 | $ | 35,020.6 |
See the accompanying Notes to Consolidated Financial Statements (unaudited)
Assurant, Inc.
Consolidated Statements of Operations (unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions, except number of shares and per share amounts) | |||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | 2,587.7 | $ | 2,444.6 | $ | 5,150.0 | $ | 4,821.1 | |||||||||||||||
| Fees and other income | 463.7 | 375.2 | 866.6 | 760.9 | |||||||||||||||||||
| Net investment income | 128.7 | 124.7 | 253.5 | 251.4 | |||||||||||||||||||
| Net realized losses on investments (including $0.0, $3.8, $3.0 and $11.8 of impairment-related losses for the three and six months ended June 30, 2025 and 2024, respectively) and fair value changes to equity securities | (21.7) | (19.6) | (37.7) | (28.4) | |||||||||||||||||||
| Total revenues | 3,158.4 | 2,924.9 | 6,232.4 | 5,805.0 | |||||||||||||||||||
| Benefits, losses and expenses | |||||||||||||||||||||||
| Policyholder benefits | 721.5 | 696.1 | 1,501.2 | 1,319.2 | |||||||||||||||||||
| Underwriting, selling, general and administrative expenses | 2,121.2 | 1,969.2 | 4,205.0 | 3,906.5 | |||||||||||||||||||
| Interest expense | 26.7 | 26.7 | 53.5 | 53.5 | |||||||||||||||||||
| Total benefits, losses and expenses | 2,869.4 | 2,692.0 | 5,759.7 | 5,279.2 | |||||||||||||||||||
| Income before income tax expense | 289.0 | 232.9 | 472.7 | 525.8 | |||||||||||||||||||
| Income tax expense | 53.7 | 44.2 | 90.8 | 100.7 | |||||||||||||||||||
| Net income | $ | 235.3 | $ | 188.7 | $ | 381.9 | $ | 425.1 | |||||||||||||||
| Earnings Per Common Share | |||||||||||||||||||||||
| Basic | $ | 4.60 | $ | 3.59 | $ | 7.46 | $ | 8.09 | |||||||||||||||
| Diluted | $ | 4.56 | $ | 3.58 | $ | 7.38 | $ | 8.05 | |||||||||||||||
| Share Data | |||||||||||||||||||||||
| Weighted average common shares outstanding used in basic per common share calculations | 51,135,518 | 52,500,727 | 51,208,066 | 52,516,296 | |||||||||||||||||||
| Plus: Dilutive securities | 436,547 | 217,009 | 511,121 | 298,660 | |||||||||||||||||||
| Weighted average common shares outstanding used in diluted per common share calculations | 51,572,065 | 52,717,736 | 51,719,187 | 52,814,956 |
See the accompanying Notes to Consolidated Financial Statements (unaudited)
Assurant, Inc.
Consolidated Statements of Comprehensive Income (unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net income | $ | 235.3 | $ | 188.7 | $ | 381.9 | $ | 425.1 | |||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Change in unrealized losses on securities, net of taxes of $(22.1), $9.6, $(40.3) and $13.8 for the three and six months ended June 30, 2025 and 2024, respectively | 69.2 | (23.0) | 144.4 | (55.2) | |||||||||||||||||||
| Change in unrealized gains on derivative transactions, net of taxes of $(0.1), $0.2, $(0.5) and $1.1 for the three and six months ended June 30, 2025 and 2024, respectively | 0.6 | (0.9) | 2.0 | (4.1) | |||||||||||||||||||
| Change in foreign currency translation, net of taxes of $(0.5), $1.9, $(2.9) and $1.8 for the three and six months ended June 30, 2025 and 2024, respectively | 43.9 | (15.1) | 52.7 | (23.6) | |||||||||||||||||||
| Change in pension and postretirement unrecognized net periodic benefit cost, net of taxes of $—, $0.6, $(0.6) and $1.3 for the three and six months ended June 30, 2025 and 2024, respectively | 0.2 | (2.5) | 2.4 | (4.8) | |||||||||||||||||||
| Total other comprehensive income (loss) | 113.9 | (41.5) | 201.5 | (87.7) | |||||||||||||||||||
| Total comprehensive income | $ | 349.2 | $ | 147.2 | $ | 583.4 | $ | 337.4 | |||||||||||||||
See the accompanying Notes to Consolidated Financial Statements (unaudited)
Assurant, Inc.
Consolidated Statements of Changes in Equity (unaudited)
| Three Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | 0.5 | $ | 1,673.9 | $ | 4,431.1 | $ | (748.5) | $ | (122.8) | $ | 5,234.2 | |||||||||||||||||||||||||||||||||||
| Stock plan compensation expense | — | 22.4 | — | — | — | 22.4 | |||||||||||||||||||||||||||||||||||||||||
| Common stock dividends ($0.80 per share) | — | — | (42.7) | — | — | (42.7) | |||||||||||||||||||||||||||||||||||||||||
| Acquisition of common stock | — | (11.8) | (52.8) | — | — | (64.6) | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | 235.3 | — | — | 235.3 | |||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | 113.9 | — | 113.9 | |||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | 0.5 | $ | 1,684.5 | $ | 4,570.9 | $ | (634.6) | $ | (122.8) | $ | 5,498.5 |
| Three Months Ended June 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2024 | $ | 0.6 | $ | 1,659.2 | $ | 4,194.2 | $ | (811.2) | $ | (122.8) | $ | 4,920.0 | |||||||||||||||||||||||||||||||||||
| Stock plan compensation expense | — | 20.1 | — | — | — | 20.1 | |||||||||||||||||||||||||||||||||||||||||
| Common stock dividends ($0.72 per share) | — | — | (39.9) | — | — | (39.9) | |||||||||||||||||||||||||||||||||||||||||
| Acquisition of common stock | (0.1) | (9.7) | (33.3) | — | — | (43.1) | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | 188.7 | — | — | 188.7 | |||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | (41.5) | — | (41.5) | |||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | 0.5 | $ | 1,669.6 | $ | 4,309.7 | $ | (852.7) | $ | (122.8) | $ | 5,004.3 |
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | 0.5 | $ | 1,686.8 | $ | 4,378.3 | $ | (836.1) | $ | (122.8) | $ | 5,106.7 | |||||||||||||||||||||||||||||||||||
| Stock plan exercises | — | 7.6 | — | — | — | 7.6 | |||||||||||||||||||||||||||||||||||||||||
| Stock plan compensation expense | — | 37.5 | — | — | — | 37.5 | |||||||||||||||||||||||||||||||||||||||||
| Common stock dividends ($1.60 per share) | — | — | (83.6) | — | — | (83.6) | |||||||||||||||||||||||||||||||||||||||||
| Acquisition of common stock | — | (47.4) | (105.7) | — | — | (153.1) | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | 381.9 | — | — | 381.9 | |||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | 201.5 | — | 201.5 | |||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | 0.5 | $ | 1,684.5 | $ | 4,570.9 | $ | (634.6) | $ | (122.8) | $ | 5,498.5 |
Assurant, Inc.
Consolidated Statements of Changes in Equity (unaudited)
| Six Months Ended June 30, 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 | — | 34.6 | — | — | — | 34.6 | |||||||||||||||||||||||||||||||||||||||||
| Common stock dividends ($1.44 per share) | — | — | (77.3) | — | — | (77.3) | |||||||||||||||||||||||||||||||||||||||||
| Acquisition of common stock | (0.1) | (40.8) | (66.3) | — | — | (107.2) | |||||||||||||||||||||||||||||||||||||||||
| Net income | — | — | 425.1 | — | — | 425.1 | |||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | (87.7) | — | (87.7) | |||||||||||||||||||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | 0.5 | $ | 1,669.6 | $ | 4,309.7 | $ | (852.7) | $ | (122.8) | $ | 5,004.3 |
See the accompanying Notes to Consolidated Financial Statements (unaudited)
Assurant, Inc.
Consolidated Statements of Cash Flows (unaudited)
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Operating activities | |||||||||||
| Net income | $ | 381.9 | $ | 425.1 | |||||||
| 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 | 26.6 | 22.5 | |||||||||
| Depreciation and amortization | 115.7 | 101.1 | |||||||||
| Net realized losses on investments, including impairment losses | 37.7 | 28.4 | |||||||||
| Stock based compensation expense | 37.5 | 34.6 | |||||||||
| Restructuring costs | (1.4) | 1.2 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Insurance policy reserves and expenses | (394.3) | 335.5 | |||||||||
| Premiums and accounts receivable | 163.8 | 446.0 | |||||||||
| Commissions payable | 26.4 | (22.5) | |||||||||
| Reinsurance recoverable | 236.1 | (61.3) | |||||||||
| Funds withheld under reinsurance | (11.3) | (69.7) | |||||||||
| Deferred acquisition costs and value of business acquired | (94.2) | (43.6) | |||||||||
| Taxes receivable | (110.1) | (150.1) | |||||||||
| Other assets and other liabilities | 224.4 | (202.0) | |||||||||
| Other | 19.1 | (51.8) | |||||||||
| Net cash provided by operating activities | 657.9 | 793.4 | |||||||||
| Investing activities | |||||||||||
| Sales of: | |||||||||||
| Fixed maturity securities available for sale | 650.2 | 571.1 | |||||||||
| Equity securities | 24.9 | 26.6 | |||||||||
| Other invested assets | 21.1 | 60.1 | |||||||||
| Maturities, calls, prepayments, and scheduled redemption of: | |||||||||||
| Fixed maturity securities available for sale | 424.2 | 237.4 | |||||||||
| Commercial mortgage loans on real estate | 39.1 | 26.2 | |||||||||
| Purchases of: | |||||||||||
| Fixed maturity securities available for sale | (1,702.9) | (1,223.1) | |||||||||
| Equity securities | (16.4) | (24.1) | |||||||||
| Commercial mortgage loans on real estate | (26.6) | (30.0) | |||||||||
| Other invested assets | (52.8) | (50.2) | |||||||||
| Property and equipment and other | (113.3) | (106.2) | |||||||||
| Subsidiaries, net of cash transferred | — | (12.1) | |||||||||
| Change in short-term investments | (32.2) | 2.6 | |||||||||
| Other | 0.2 | 0.1 | |||||||||
| Net cash used in investing activities | (784.5) | (521.6) |
Assurant, Inc.
Consolidated Statements of Cash Flows (unaudited)
| Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Financing activities | |||||||||||
| Acquisition of common stock | (127.6) | (87.7) | |||||||||
| Common stock dividends paid | (83.6) | (77.3) | |||||||||
| Employee stock purchases and withholdings | (11.8) | (12.0) | |||||||||
| Net cash used in financing activities | (223.0) | (177.0) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 28.6 | (9.1) | |||||||||
| Change in cash and cash equivalents | (321.0) | 85.7 | |||||||||
| Cash and cash equivalents at beginning of period | 1,807.7 | 1,627.4 | |||||||||
| Cash and cash equivalents at end of period | $ | 1,486.7 | $ | 1,713.1 |
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
1. Nature of Operations
Assurant, Inc. (the “Company”) is a premier global protection company that partners with the world’s leading brands to safeguard and service connected devices, homes and automobiles. The Company leverages data-driven technology solutions to provide exceptional customer experiences. The Company operates in North America, Latin America, Europe and Asia Pacific through two operating segments: Global Lifestyle and Global Housing. Through its Global Lifestyle segment, the Company provides mobile device solutions, extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection services, commercial equipment 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 June 30, 2025, the consolidated statements of operations, consolidated statements of comprehensive income and consolidated statements of changes in equity for the three and six months ended June 30, 2025 and 2024 and the consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 are unaudited. In the opinion of management, the interim data includes all normal recurring 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 and six months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. 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, 2024.
Restricted Cash
Restricted cash and cash equivalents of $136.9 million and $122.4 million as of June 30, 2025 and December 31, 2024, respectively, principally related to cash deposits involving insurance programs with restrictions as to withdrawal and use, are classified within cash and cash equivalents in the consolidated balance sheets.
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
One Big Beautiful Bill Act
On July 4, 2025, the U.S. enacted the One Big Beautiful Bill Act, which includes certain changes to U.S. corporate tax provisions and extends many of the provisions of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. The Company is currently assessing the impact of this new legislation, but does not expect it to have a material impact on the Company’s consolidated financial statements.
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.
Adopted
There were no ASUs adopted by the Company during the quarterly period ended June 30, 2025.
Not Yet Adopted
ASUs issued but not yet adopted as of June 30, 2025, that are currently being assessed and may or may not have a material impact on the Company’s consolidated financial statements or disclosures are included below. ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures.
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. | Annual periods starting December 31, 2025 | The Company is assessing the adoption of this standard as of December 31, 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. | ||||||||
| ASU 2024-03 Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses | The guidance improves disclosures of specified information about certain costs and expenses for each interim and annual reporting period. The new disclosure requirements include: • Disclose the amounts of (a) purchases of inventory; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption. *•*Include certain amounts that are already required to be disclosed under current GAAP in the same disclosure as the other disaggregation requirements. *•*Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. *•*Disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. | December 31, 2027 and for interim periods thereafter | The Company is assessing the impact of adopting this standard as of December 31, 2027. The amended guidance is expected to have no impact on the Company’s consolidated financial statements and to expand the annual and interim disclosures of disaggregation of relevant expense captions in the Company’s consolidated statement of operations. |
4. Segment Information
As of June 30, 2025, the Company had two reportable operating segments: Global Lifestyle and Global Housing. In addition, the Company reports the Corporate and Other segment, which includes corporate employee-related expenses and activities of the holding company.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer (“CEO”). Adjusted EBITDA defined below is the primary measure used by the CODM to assess performance and allocate resources to the segments. The CODM budgets and forecasts for each segment based on Adjusted EBITDA, and then tracks and assesses performance throughout the year by comparing the actual Adjusted EBITDA to the budget and forecast for each segment. The individual operating segment’s performance is one of the considerations when determining the compensation of certain employees.
The Company defines Adjusted EBITDA, the segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, interest expense, benefit (provision) for income taxes, depreciation expense, amortization of purchased intangible assets, as well as other highly variable or unusual items (including non-core operations and restructuring costs, each as described below).
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
The following tables provide information about the segments’ Adjusted EBITDA.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Global Lifestyle: | |||||||||||||||||||||||
| Net earned premiums, fees and other income: | |||||||||||||||||||||||
| Connected Living | $ | 1,326.4 | $ | 1,148.5 | $ | 2,559.8 | $ | 2,288.8 | |||||||||||||||
| Global Automotive | 1,024.4 | 1,035.0 | 2,097.6 | 2,082.5 | |||||||||||||||||||
| Net investment income | 87.7 | 85.7 | 171.7 | 175.9 | |||||||||||||||||||
| Total revenues | 2,438.5 | 2,269.2 | 4,829.1 | 4,547.2 | |||||||||||||||||||
| Policyholder benefits | 461.5 | 411.8 | 903.9 | 829.5 | |||||||||||||||||||
| Selling and underwriting expense (1) | 1,230.2 | 1,188.0 | 2,496.0 | 2,370.5 | |||||||||||||||||||
| Cost of sales (2) | 231.4 | 182.4 | 416.2 | 368.4 | |||||||||||||||||||
| General expenses (3) | 314.0 | 297.3 | 613.8 | 581.4 | |||||||||||||||||||
| Segment Adjusted EBITDA | $ | 201.4 | $ | 189.7 | $ | 399.2 | $ | 397.4 | |||||||||||||||
| Global Housing: | |||||||||||||||||||||||
| Net earned premiums, fees and other income: | |||||||||||||||||||||||
| Homeowners | $ | 552.8 | $ | 512.7 | $ | 1,075.7 | $ | 960.1 | |||||||||||||||
| Renters and Other | 144.9 | 120.9 | 278.8 | 245.7 | |||||||||||||||||||
| Net investment income | 34.4 | 29.9 | 68.1 | 58.4 | |||||||||||||||||||
| Total revenues | 732.1 | 663.5 | 1,422.6 | 1,264.2 | |||||||||||||||||||
| Policyholder benefits | 258.7 | 279.9 | 591.7 | 480.2 | |||||||||||||||||||
| Selling and underwriting expense (1) | 52.4 | 34.8 | 91.9 | 72.9 | |||||||||||||||||||
| General expenses (4) | 206.6 | 187.9 | 412.2 | 357.7 | |||||||||||||||||||
| Segment Adjusted EBITDA | $ | 214.4 | $ | 160.9 | $ | 326.8 | $ | 353.4 | |||||||||||||||
| Corporate: | |||||||||||||||||||||||
| Fees and other income | $ | 1.3 | $ | 0.1 | $ | 1.7 | $ | 0.3 | |||||||||||||||
| Net investment income | 5.6 | 7.1 | 11.4 | 12.7 | |||||||||||||||||||
| Total revenues | 6.9 | 7.2 | 13.1 | 13.0 | |||||||||||||||||||
| Policyholder benefits | — | — | — | — | |||||||||||||||||||
| General expenses (3) | 36.7 | 34.4 | 70.9 | 69.7 | |||||||||||||||||||
| Segment Adjusted EBITDA | $ | (29.8) | $ | (27.2) | $ | (57.8) | $ | (56.7) |
(1)Consists primarily of commissions, premium taxes and amortization of deferred acquisition costs.
(2)Consists primarily of costs to acquire, and repair or refurbish mobile and other electronic devices the Company sells to third-parties.
(3)Consists primarily of licenses, fees, and general operating expenses.
(4)Consists primarily of lender-placed tracking, licenses, fees, and general operating expenses.
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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Adjusted EBITDA by segment: | |||||||||||||||||||||||
| Global Lifestyle | $ | 201.4 | $ | 189.7 | $ | 399.2 | $ | 397.4 | |||||||||||||||
| Global Housing | 214.4 | 160.9 | 326.8 | 353.4 | |||||||||||||||||||
| Corporate and Other | (29.8) | (27.2) | (57.8) | (56.7) | |||||||||||||||||||
| Reconciling items to consolidated net income: | |||||||||||||||||||||||
| Interest expense | (26.7) | (26.7) | (53.5) | (53.5) | |||||||||||||||||||
| Depreciation expense | (35.9) | (30.0) | (71.0) | (60.6) | |||||||||||||||||||
| Amortization of purchased intangible assets | (15.1) | (17.3) | (33.5) | (34.9) | |||||||||||||||||||
| Net realized losses on investments and fair value changes to equity securities | (21.7) | (19.6) | (37.7) | (28.4) | |||||||||||||||||||
| Non-core operations (1) | 0.6 | (3.7) | (0.7) | (5.9) | |||||||||||||||||||
| Restructuring costs (2) | 0.3 | (1.2) | 1.4 | (1.2) | |||||||||||||||||||
| Other adjustments | 1.5 | 8.0 | (0.5) | 16.2 | |||||||||||||||||||
| Total reconciling items | (97.0) | (90.5) | (195.5) | (168.3) | |||||||||||||||||||
| Income before income tax expense | 289.0 | 232.9 | 472.7 | 525.8 | |||||||||||||||||||
| Income tax expense | 53.7 | 44.2 | 90.8 | 100.7 | |||||||||||||||||||
| Net income | $ | 235.3 | $ | 188.7 | $ | 381.9 | $ | 425.1 |
(1)Consists of certain businesses which the Company has fully exited or expects to fully exit, including the long-tail commercial liability businesses (sharing economy and small commercial businesses), Assurant Health runoff operations, certain legacy long-duration insurance policies and the Company’s operations in mainland China (not Hong Kong) (collectively referred to as “non-core operations”). The non-core operations do not qualify as held for sale or discontinued operations under GAAP accounting guidance and are presented as a reconciling item to consolidated net income. During 2024, the mainland China operations were sold and were no longer included in non-core operations commencing with first quarter 2025.
(2)Relates to strategic exit activities (outside of normal periodic restructuring and cost management activities).
The following table presents total assets by segment:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Global Lifestyle (1) | $ | 28,439.2 | $ | 27,468.0 | |||||||
| Global Housing (1) | 5,369.3 | 5,773.4 | |||||||||
| Corporate and Other (2) | 1,717.4 | 1,779.2 | |||||||||
| Segment assets | $ | 35,525.9 | $ | 35,020.6 |
(1)Segment assets for Global Lifestyle and Global Housing do not include net unrealized gains (losses) on securities attributable to those segments, which are all included within Corporate and Other.
(2)Corporate and Other includes the Miami, Florida property with a carrying value of $46.0 million as of June 30, 2025 and December 31, 2024, 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 first quarter 2025, the Company entered into an agreement to sell the Miami, Florida property to a buyer for a purchase price of $126.0 million, subject to certain adjustments. The transaction is subject to the buyer receiving the requisite development approvals from relevant state and local government authorities, including approvals relating to land use, rezoning and site plan. There can be no assurance that the transaction will be 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 service contracts and sales of products are recognized as the contractual performance obligations are satisfied or the products are delivered. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for performing the services or transferring products. If payments are received before the related revenue is recognized, the amount is recorded as unearned revenue or advance payment liabilities, until the performance obligations are satisfied or the products are transferred.
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
The disaggregated revenues from service contracts included in fees and other income on the consolidated statements of operations are $402.1 million and $314.3 million for Global Lifestyle and $36.3 million and $40.8 million for Global Housing for the three months ended June 30, 2025 and 2024, respectively. The disaggregated revenues from service contracts included in fees and other income on the consolidated statements of operations are $751.8 million and $659.5 million for Global Lifestyle and $67.0 million and $61.4 million for Global Housing for the six months ended June 30, 2025 and 2024, respectively.
Global Lifestyle
In the Global Lifestyle segment, revenues from service contracts and sales of products are primarily from the Company’s Connected Living business. Through partnerships with mobile service providers, the Company provides administrative services related to its mobile device protection products, including program design and marketing strategy, risk management, data analytics, customer support and claims handling, supply chain and service delivery, repair and logistics, and device disposition. Administrative fees are generally billed monthly based on the volume of services provided during the billing period (for example, based on the number of mobile subscribers) with payment due within a short-term period. Each service or bundle of services, depending on the contract, is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer.
The Company also repairs, refurbishes and then sells mobile and other electronic devices, on behalf of its client, for a bundled per unit fee. The entire processing of the device is considered one performance obligation with a standalone selling price and thus, the per unit fee is recognized when the products are sold. Payments are generally due prior to shipment or within a short-term period.
Global Housing
In the Global Housing segment, revenues from service contracts and sales of products are primarily from the Homeowners business. As part of the Homeowners business, the Company provides loan and claim payment tracking services for lenders. The Company generally invoices its customers weekly or monthly based on the volume of services provided during the billing period with payment due within a short-term period. Each service is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer.
Contract Balances
The receivables and unearned revenue under these contracts were $187.6 million and $149.3 million, respectively, as of June 30, 2025, and $171.3 million and $153.8 million, respectively, as of December 31, 2024. These balances are included in premiums and accounts receivable and accounts payable and other liabilities, respectively, in the consolidated balance sheets. Revenue from service contracts and sales of products recognized during the three months ended June 30, 2025 and 2024 that was included in unearned revenue as of December 31, 2024 and 2023 was $17.5 million and $17.4 million, respectively. Revenue from service contracts and sales of products recognized during the six months ended June 30, 2025 and 2024 that was included in unearned revenue as of December 31, 2024 and 2023 was $34.9 million and $34.7 million, respectively.
In certain circumstances, the Company defers upfront commissions and other costs in connection with client contracts in excess of one year where the Company can demonstrate future economic benefit. For these contracts, expense is recognized as revenues are earned. The Company periodically assesses recoverability based on the performance of the related contracts. As of June 30, 2025 and December 31, 2024, the Company had approximately $76.3 million and $83.4 million, respectively, of such intangible assets 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:
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
| June 30, 2025 | |||||||||||||||||||||||||||||
| Cost or Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 64.4 | $ | — | $ | 0.6 | $ | (1.7) | $ | 63.3 | |||||||||||||||||||
| States, municipalities and political subdivisions | 107.4 | — | 0.7 | (7.1) | 101.0 | ||||||||||||||||||||||||
| Foreign governments | 572.6 | — | 8.9 | (10.9) | 570.6 | ||||||||||||||||||||||||
| Asset-backed | 915.8 | — | 4.9 | (10.8) | 909.9 | ||||||||||||||||||||||||
| Commercial mortgage-backed | 432.0 | — | 3.4 | (26.8) | 408.6 | ||||||||||||||||||||||||
| Residential mortgage-backed | 842.1 | — | 6.4 | (42.3) | 806.2 | ||||||||||||||||||||||||
| U.S. corporate | 3,633.1 | — | 67.6 | (144.4) | 3,556.3 | ||||||||||||||||||||||||
| Foreign corporate | 1,667.6 | — | 34.9 | (46.6) | 1,655.9 | ||||||||||||||||||||||||
| Total fixed maturity securities | $ | 8,235.0 | $ | — | $ | 127.4 | $ | (290.6) | $ | 8,071.8 |
| December 31, 2024 | |||||||||||||||||||||||||||||
| Cost or Amortized Cost | Allowance for Credit Losses | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 54.5 | $ | — | $ | 0.1 | $ | (3.4) | $ | 51.2 | |||||||||||||||||||
| States, municipalities and political subdivisions | 128.7 | — | 0.6 | (10.2) | 119.1 | ||||||||||||||||||||||||
| Foreign governments | 484.6 | — | 2.6 | (25.1) | 462.1 | ||||||||||||||||||||||||
| Asset-backed | 940.3 | — | 6.5 | (9.5) | 937.3 | ||||||||||||||||||||||||
| Commercial mortgage-backed | 371.8 | — | 1.0 | (36.4) | 336.4 | ||||||||||||||||||||||||
| Residential mortgage-backed | 690.0 | — | 1.6 | (50.5) | 641.1 | ||||||||||||||||||||||||
| U.S. corporate | 3,364.3 | — | 26.9 | (203.8) | 3,187.4 | ||||||||||||||||||||||||
| Foreign corporate | 1,490.6 | — | 19.0 | (69.1) | 1,440.5 | ||||||||||||||||||||||||
| Total fixed maturity securities | $ | 7,524.8 | $ | — | $ | 58.3 | $ | (408.0) | $ | 7,175.1 |
The cost or amortized cost and fair value of fixed maturity securities as of June 30, 2025 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties.
| June 30, 2025 | |||||||||||||||||||||||||||||
| Cost or Amortized Cost | Fair Value | ||||||||||||||||||||||||||||
| Due in one year or less | $ | 107.7 | $ | 107.8 | |||||||||||||||||||||||||
| Due after one year through five years | 1,412.4 | 1,423.1 | |||||||||||||||||||||||||||
| Due after five years through ten years | 3,335.0 | 3,349.9 | |||||||||||||||||||||||||||
| Due after ten years | 1,190.0 | 1,066.3 | |||||||||||||||||||||||||||
| Total | 6,045.1 | 5,947.1 | |||||||||||||||||||||||||||
| Asset-backed | 915.8 | 909.9 | |||||||||||||||||||||||||||
| Commercial mortgage-backed | 432.0 | 408.6 | |||||||||||||||||||||||||||
| Residential mortgage-backed | 842.1 | 806.2 | |||||||||||||||||||||||||||
| Total | $ | 8,235.0 | $ | 8,071.8 |
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:
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities: | |||||||||||||||||||||||
| Fixed maturity securities | $ | (21.2) | $ | (14.8) | $ | (38.2) | $ | (29.2) | |||||||||||||||
| Equity securities (1) | (1.1) | — | 1.7 | 10.1 | |||||||||||||||||||
| Commercial mortgage loans on real estate | 0.3 | (1.3) | 1.7 | (2.3) | |||||||||||||||||||
| Other investments | 0.3 | 0.3 | 0.1 | 4.8 | |||||||||||||||||||
| Total net realized losses on investments related to sales and other and fair value changes to equity securities | (21.7) | (15.8) | (34.7) | (16.6) | |||||||||||||||||||
| Net realized losses related to impairments: | |||||||||||||||||||||||
| Fixed maturity securities | — | (0.7) | — | (1.0) | |||||||||||||||||||
| Other investments | — | (3.1) | (3.0) | (10.8) | |||||||||||||||||||
| Total net realized losses related to impairments | — | (3.8) | (3.0) | (11.8) | |||||||||||||||||||
| Total net realized losses on investments and fair value changes to equity securities | $ | (21.7) | $ | (19.6) | $ | (37.7) | $ | (28.4) |
(1)Upward adjustments of $0.0 million, $2.5 million, $0.3 million and $4.1 million for the three and six months ended June 30, 2025 and 2024, respectively, and impairments of $0.0 million, $3.0 million, $3.1 million and $10.8 million for the three and six months ended June 30, 2025 and 2024, 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net gains (losses) recognized on equity securities | $ | (1.1) | $ | — | $ | 1.7 | $ | 10.1 | |||||||||||||||
| Less: Net realized gains (losses) related to sales of equity securities | (13.5) | 5.2 | (14.0) | 5.1 | |||||||||||||||||||
| Total fair value changes to equity securities held | $ | 12.4 | $ | (5.2) | $ | 15.7 | $ | 5.0 |
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:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Initial cost | $ | 79.7 | $ | 74.8 | |||||||
| Cumulative upward adjustments | 53.4 | 57.9 | |||||||||
| Cumulative downward adjustments (including impairments) | (22.2) | (24.4) | |||||||||
| Carrying value | $ | 110.9 | $ | 108.3 |
The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities as of June 30, 2025 and December 31, 2024 were as follows:
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
| June 30, 2025 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 8.3 | $ | (0.2) | $ | 14.5 | $ | (1.5) | $ | 22.8 | $ | (1.7) | |||||||||||||||||||||||
| States, municipalities and political subdivisions | 11.9 | (0.6) | 57.6 | (6.5) | 69.5 | (7.1) | |||||||||||||||||||||||||||||
| Foreign governments | 87.7 | (2.0) | 130.4 | (8.9) | 218.1 | (10.9) | |||||||||||||||||||||||||||||
| Asset-backed | 108.1 | (4.0) | 86.6 | (6.8) | 194.7 | (10.8) | |||||||||||||||||||||||||||||
| Commercial mortgage-backed | 21.3 | (0.2) | 179.8 | (26.6) | 201.1 | (26.8) | |||||||||||||||||||||||||||||
| Residential mortgage-backed | 109.0 | (2.1) | 206.2 | (40.2) | 315.2 | (42.3) | |||||||||||||||||||||||||||||
| U.S. corporate | 303.0 | (9.5) | 772.0 | (134.9) | 1,075.0 | (144.4) | |||||||||||||||||||||||||||||
| Foreign corporate | 150.4 | (2.3) | 322.4 | (44.3) | 472.8 | (46.6) | |||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 799.7 | $ | (20.9) | $ | 1,769.5 | $ | (269.7) | $ | 2,569.2 | $ | (290.6) |
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Less than 12 months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||
| Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
| Fixed maturity securities: | |||||||||||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 25.8 | $ | (0.6) | $ | 21.4 | $ | (2.8) | $ | 47.2 | $ | (3.4) | |||||||||||||||||||||||
| States, municipalities and political subdivisions | 20.4 | (1.5) | 66.1 | (8.7) | 86.5 | (10.2) | |||||||||||||||||||||||||||||
| Foreign governments | 164.8 | (10.9) | 171.3 | (14.2) | 336.1 | (25.1) | |||||||||||||||||||||||||||||
| Asset-backed | 59.0 | (3.5) | 87.6 | (6.0) | 146.6 | (9.5) | |||||||||||||||||||||||||||||
| Commercial mortgage-backed | 65.7 | (1.3) | 195.8 | (35.1) | 261.5 | (36.4) | |||||||||||||||||||||||||||||
| Residential mortgage-backed | 223.4 | (4.8) | 209.7 | (45.7) | 433.1 | (50.5) | |||||||||||||||||||||||||||||
| U.S. corporate | 1,083.8 | (29.9) | 954.3 | (173.9) | 2,038.1 | (203.8) | |||||||||||||||||||||||||||||
| Foreign corporate | 368.1 | (9.9) | 431.4 | (59.2) | 799.5 | (69.1) | |||||||||||||||||||||||||||||
| Total fixed maturity securities | $ | 2,011.0 | $ | (62.4) | $ | 2,137.6 | $ | (345.6) | $ | 4,148.6 | $ | (408.0) |
Total gross unrealized losses represented approximately 11% of the aggregate fair value of the related securities as of June 30, 2025 and 10% as of December 31, 2024. Approximately 7% and 15% of these gross unrealized losses had been in a continuous loss position for less than twelve months as of June 30, 2025 and December 31, 2024, respectively. The total gross unrealized losses are comprised of 1,951 and 2,712 individual securities as of June 30, 2025 and December 31, 2024, respectively. In accordance with its policy, the Company concluded that for these securities, the gross unrealized losses as of June 30, 2025 and December 31, 2024 were related to non-credit factors and therefore, did not recognize credit-related losses during the three and six months ended June 30, 2025. 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 June 30, 2025, approximately 34% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Texas and Maryland. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans range in size from less than $0.1 million to $5.0 million as of June 30, 2025 and December 31, 2024.
Credit quality indicators for commercial mortgage loans are loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value of the underlying property collateralizing the loan, and is
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
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 June 30, 2025 and December 31, 2024.
| June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | % of Total | ||||||||||||||||||||||||||||||||||||||||
| Loan to value ratios (1): | |||||||||||||||||||||||||||||||||||||||||||||||
| 70% and less | $ | 26.0 | $ | 52.5 | $ | 37.0 | $ | 24.5 | $ | 20.0 | $ | 46.6 | $ | 206.6 | 61.8 | % | |||||||||||||||||||||||||||||||
| 71% to 80% | — | 1.8 | 6.8 | 20.7 | 56.6 | 2.8 | 88.7 | 26.5 | % | ||||||||||||||||||||||||||||||||||||||
| 81% to 95% | — | — | — | 10.7 | 5.0 | 5.8 | 21.5 | 6.4 | % | ||||||||||||||||||||||||||||||||||||||
| Greater than 95% | — | — | 3.8 | 7.9 | 6.1 | — | 17.8 | 5.3 | % | ||||||||||||||||||||||||||||||||||||||
| Total | $ | 26.0 | $ | 54.3 | $ | 47.6 | $ | 63.8 | $ | 87.7 | $ | 55.2 | $ | 334.6 | 100.0 | % |
| June 30, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | % of Total | ||||||||||||||||||||||||||||||||||||||||
| Debt-service coverage ratios (2): | |||||||||||||||||||||||||||||||||||||||||||||||
| Greater than 2.0 | $ | 2.3 | $ | 6.4 | $ | 0.5 | $ | 17.8 | $ | 10.7 | $ | 33.3 | $ | 71.0 | 21.2 | % | |||||||||||||||||||||||||||||||
| 1.5 to 2.0 | 4.3 | 20.9 | 12.1 | 10.8 | 24.7 | 13.4 | 86.2 | 25.8 | % | ||||||||||||||||||||||||||||||||||||||
| 1.0 to 1.5 | 19.4 | 26.0 | 14.5 | 15.4 | 22.4 | 7.0 | 104.7 | 31.3 | % | ||||||||||||||||||||||||||||||||||||||
| Less than 1.0 | — | 1.0 | 20.5 | 19.8 | 29.9 | 1.5 | 72.7 | 21.7 | % | ||||||||||||||||||||||||||||||||||||||
| Total | $ | 26.0 | $ | 54.3 | $ | 47.6 | $ | 63.8 | $ | 87.7 | $ | 55.2 | $ | 334.6 | 100.0 | % |
| December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | % of Total | ||||||||||||||||||||||||||||||||||||||||
| Loan to value ratios (1): | |||||||||||||||||||||||||||||||||||||||||||||||
| 70% and less | $ | 51.9 | $ | 43.2 | $ | 29.6 | $ | 16.0 | $ | — | $ | 57.9 | $ | 198.6 | 56.9 | % | |||||||||||||||||||||||||||||||
| 71% to 80% | 3.8 | 4.9 | 22.8 | 65.5 | 2.8 | — | 99.8 | 28.6 | % | ||||||||||||||||||||||||||||||||||||||
| 81% to 95% | — | — | 12.6 | 8.6 | — | 9.5 | 30.7 | 8.8 | % | ||||||||||||||||||||||||||||||||||||||
| Greater than 95% | — | 3.8 | 9.9 | 6.2 | — | — | 19.9 | 5.7 | % | ||||||||||||||||||||||||||||||||||||||
| Total | $ | 55.7 | $ | 51.9 | $ | 74.9 | $ | 96.3 | $ | 2.8 | $ | 67.4 | $ | 349.0 | 100.0 | % |
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
| December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total | % of Total | ||||||||||||||||||||||||||||||||||||||||
| Debt-service coverage ratios (2): | |||||||||||||||||||||||||||||||||||||||||||||||
| Greater than 2.0 | $ | 6.4 | $ | 0.6 | $ | 18.0 | $ | 10.8 | $ | — | $ | 43.4 | $ | 79.2 | 22.7 | % | |||||||||||||||||||||||||||||||
| 1.5 to 2.0 | 20.9 | 12.2 | 10.9 | 25.0 | — | 14.0 | 83.0 | 23.8 | % | ||||||||||||||||||||||||||||||||||||||
| 1.0 to 1.5 | 27.4 | 18.8 | 20.4 | 22.5 | 2.8 | 4.8 | 96.7 | 27.7 | % | ||||||||||||||||||||||||||||||||||||||
| Less than 1.0 | 1.0 | 20.3 | 25.6 | 38.0 | — | 5.2 | 90.1 | 25.8 | % | ||||||||||||||||||||||||||||||||||||||
| Total | $ | 55.7 | $ | 51.9 | $ | 74.9 | $ | 96.3 | $ | 2.8 | $ | 67.4 | $ | 349.0 | 100.0 | % |
(1)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 June 30, 2025 and December 31, 2024. The amounts presented below for short-term investments, other investments, cash equivalents, other assets, assets held in and liabilities related to separate accounts and other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan (“AIP”), the American Security Insurance Company Investment Plan, the Assurant Deferred Compensation Plan, the Retiree Medical Pension 401(h), and other derivatives. Other liabilities are comprised of investments in the AIP,
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
contingent considerations related to business combinations, and other derivatives. The fair value amount and the majority of the associated levels presented for other investments and assets and liabilities held in separate accounts are received directly from third parties.
| June 30, 2025 | ||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||
| Fixed maturity securities: | ||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 63.3 | $ | — | $ | 63.3 | $ | — | ||||||||||||||||||
| States, municipalities and political subdivisions | 101.0 | — | 101.0 | — | ||||||||||||||||||||||
| Foreign governments | 570.6 | — | 570.6 | — | ||||||||||||||||||||||
| Asset-backed | 909.9 | — | 791.7 | 118.2 | ||||||||||||||||||||||
| Commercial mortgage-backed | 408.6 | — | 408.6 | — | ||||||||||||||||||||||
| Residential mortgage-backed | 806.2 | — | 806.2 | — | ||||||||||||||||||||||
| U.S. corporate | 3,556.3 | — | 3,507.1 | 49.2 | ||||||||||||||||||||||
| Foreign corporate | 1,655.9 | — | 1,648.0 | 7.9 | ||||||||||||||||||||||
| Equity securities: | ||||||||||||||||||||||||||
| Mutual funds | 36.2 | 15.5 | — | 20.7 | ||||||||||||||||||||||
| Common stocks | 2.0 | 2.0 | — | — | ||||||||||||||||||||||
| Non-redeemable preferred stocks | 169.7 | — | 169.3 | 0.4 | ||||||||||||||||||||||
| Short-term investments | 282.8 | 280.2 | (2) | 2.6 | (3) | — | ||||||||||||||||||||
| Other investments | 86.9 | 86.8 | (1) | — | 0.1 | |||||||||||||||||||||
| Cash equivalents | 1,020.4 | 1,006.2 | (2) | 14.2 | (3) | — | ||||||||||||||||||||
| Other assets | 8.8 | — | — | 8.8 | (4) | |||||||||||||||||||||
| Assets held in separate accounts | 11.3 | 5.5 | (1) | 5.8 | (3) | — | ||||||||||||||||||||
| Total financial assets | $ | 9,689.9 | $ | 1,396.2 | $ | 8,088.4 | $ | 205.3 | ||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
| Other liabilities | $ | 90.8 | $ | 70.6 | (1) | $ | — | $ | 20.2 | (5) | ||||||||||||||||
| Liabilities related to separate accounts | 11.3 | 5.5 | (1) | 5.8 | (3) | — | ||||||||||||||||||||
| Total financial liabilities | $ | 102.1 | $ | 76.1 | $ | 5.8 | $ | 20.2 |
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
| December 31, 2024 | ||||||||||||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||
| Financial Assets | ||||||||||||||||||||||||||
| Fixed maturity securities: | ||||||||||||||||||||||||||
| U.S. government and government agencies and authorities | $ | 51.2 | $ | — | $ | 51.2 | $ | — | ||||||||||||||||||
| States, municipalities and political subdivisions | 119.1 | — | 119.1 | — | ||||||||||||||||||||||
| Foreign governments | 462.1 | — | 462.1 | — | ||||||||||||||||||||||
| Asset-backed | 937.3 | — | 823.7 | 113.6 | ||||||||||||||||||||||
| Commercial mortgage-backed | 336.4 | — | 336.4 | — | ||||||||||||||||||||||
| Residential mortgage-backed | 641.1 | — | 641.1 | — | ||||||||||||||||||||||
| U.S. corporate | 3,187.4 | — | 3,139.9 | 47.5 | ||||||||||||||||||||||
| Foreign corporate | 1,440.5 | — | 1,432.5 | 8.0 | ||||||||||||||||||||||
| Equity securities: | ||||||||||||||||||||||||||
| Mutual funds | 28.8 | 13.6 | — | 15.2 | ||||||||||||||||||||||
| Common stocks | 3.5 | 3.5 | — | — | ||||||||||||||||||||||
| Non-redeemable preferred stocks | 176.2 | — | 176.2 | — | ||||||||||||||||||||||
| Short-term investments | 237.1 | 230.1 | (2) | 7.0 | (3) | — | ||||||||||||||||||||
| Other investments | 66.1 | 66.0 | (1) | — | 0.1 | |||||||||||||||||||||
| Cash equivalents | 1,325.6 | 1,312.0 | (2) | 13.6 | (3) | — | ||||||||||||||||||||
| Other assets | 6.3 | — | — | 6.3 | (4) | |||||||||||||||||||||
| Assets held in separate accounts | 11.3 | 8.7 | (1) | 2.6 | (3) | — | ||||||||||||||||||||
| Total financial assets | $ | 9,030.0 | $ | 1,633.9 | $ | 7,205.4 | $ | 190.7 | ||||||||||||||||||
| Financial Liabilities | ||||||||||||||||||||||||||
| Other liabilities | $ | 66.0 | $ | 66.0 | (1) | $ | — | $ | — | |||||||||||||||||
| Liabilities related to separate accounts | 11.3 | 8.7 | (1) | 2.6 | (3) | — | ||||||||||||||||||||
| Total financial liabilities | $ | 77.3 | $ | 74.7 | $ | 2.6 | $ | — |
(1)Primarily includes mutual funds and related obligations.
(2)Primarily includes money market funds.
(3)Primarily includes fixed maturity securities and related obligations.
(4)Primarily includes derivatives.
(5)Includes contingent consideration liabilities.
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:
| June 30, 2025 | |||||||||||||||||||||||||||||
| Fair Value | |||||||||||||||||||||||||||||
| Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| Financial Assets | |||||||||||||||||||||||||||||
| Commercial mortgage loans on real estate | $ | 329.8 | $ | 323.8 | $ | — | $ | — | $ | 323.8 | |||||||||||||||||||
| Other investments | 28.8 | 28.8 | 1.2 | — | 27.6 | ||||||||||||||||||||||||
| Other assets | 36.2 | 36.2 | — | — | 36.2 | ||||||||||||||||||||||||
| Total financial assets | $ | 394.8 | $ | 388.8 | $ | 1.2 | $ | — | $ | 387.6 | |||||||||||||||||||
| Financial Liabilities | |||||||||||||||||||||||||||||
| Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) | $ | 6.4 | $ | 6.8 | $ | — | $ | — | $ | 6.8 | |||||||||||||||||||
| Funds withheld under reinsurance | 268.1 | 268.1 | 268.1 | — | — | ||||||||||||||||||||||||
| Debt | 2,084.4 | 2,029.2 | — | 2,029.2 | — | ||||||||||||||||||||||||
| Total financial liabilities | $ | 2,358.9 | $ | 2,304.1 | $ | 268.1 | $ | 2,029.2 | $ | 6.8 | |||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
| Fair Value | |||||||||||||||||||||||||||||
| Carrying Value | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| Financial Assets | |||||||||||||||||||||||||||||
| Commercial mortgage loans on real estate | $ | 342.5 | $ | 333.3 | $ | — | $ | — | $ | 333.3 | |||||||||||||||||||
| Other investments | 23.2 | 23.2 | 1.3 | — | 21.9 | ||||||||||||||||||||||||
| Other assets | 26.3 | 26.3 | — | — | 26.3 | ||||||||||||||||||||||||
| Total financial assets | $ | 392.0 | $ | 382.8 | $ | 1.3 | $ | — | $ | 381.5 | |||||||||||||||||||
| Financial Liabilities | |||||||||||||||||||||||||||||
| Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) | $ | 6.5 | $ | 6.9 | $ | — | $ | — | $ | 6.9 | |||||||||||||||||||
| Funds withheld under reinsurance | 277.7 | 277.7 | 277.7 | — | — | ||||||||||||||||||||||||
| Debt | 2,083.1 | 1,998.1 | — | 1,998.1 | — | ||||||||||||||||||||||||
| Total financial liabilities | $ | 2,367.3 | $ | 2,282.7 | $ | 277.7 | $ | 1,998.1 | $ | 6.9 |
(1)Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the tables above.
8. Deferred Acquisition Costs
The following table discloses information about deferred acquisition costs as of the dates indicated:
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Beginning balance | $ | 9,959.8 | $ | 9,978.9 | $ | 9,992.8 | $ | 9,967.2 | |||||||||||||||
| Costs deferred | 1,105.6 | 1,077.4 | 2,269.5 | 2,111.8 | |||||||||||||||||||
| Amortization | (926.9) | (1,015.3) | (2,123.8) | (2,038.0) | |||||||||||||||||||
| Ending balance | $ | 10,138.5 | $ | 10,041.0 | $ | 10,138.5 | $ | 10,041.0 |
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 Six Months Ended June 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Claims and benefits payable, at beginning of period | $ | 2,914.2 | $ | 1,989.2 | |||||||
| Less: Reinsurance ceded and other | (1,669.8) | (886.6) | |||||||||
| Net claims and benefits payable, at beginning of period | 1,244.4 | 1,102.6 | |||||||||
| Incurred losses and loss adjustment expenses related to: | |||||||||||
| Current year | 1,600.5 | 1,384.2 | |||||||||
| Prior years | (99.3) | (65.0) | |||||||||
| Total incurred losses and loss adjustment expenses | 1,501.2 | 1,319.2 | |||||||||
| Paid losses and loss adjustment expenses related to: | |||||||||||
| Current year | 943.9 | 731.5 | |||||||||
| Prior years | 553.4 | 480.8 | |||||||||
| Total paid losses and loss adjustment expenses | 1,497.3 | 1,212.3 | |||||||||
| Net claims and benefits payable, at end of period | 1,248.3 | 1,209.5 | |||||||||
| Plus: Reinsurance ceded and other (1) | 1,102.6 | 905.7 | |||||||||
| Claims and benefits payable, at end of period (1) | $ | 2,350.9 | $ | 2,115.2 |
(1)Includes reinsurance recoverables and claims and benefits payable of $339.6 million and $104.0 million as of June 30, 2025 and 2024, 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 $99.3 million and $65.0 million for the six months ended June 30, 2025 and 2024, respectively, as presented in the roll forward table above.
Global Lifestyle contributed $36.8 million and $17.0 million in net favorable loss development for the six months ended June 30, 2025 and 2024, 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 $22.1 million of net favorable development, of which $9.4 million was from mobile, $9.7 million was from extended service contracts and $3.0 million was from credit and other insurance. For mobile, the favorable development was primarily attributable to reserve releases as a new client’s actual loss experience replaced initial pricing assumptions. For extended service contracts, reserve releases and favorable development are primarily attributable to fewer claims as inforce contract counts decrease slightly and lower severity from new pricing agreements with servicers. For credit and other insurance, the favorable development was primarily attributable to administrative closure of claims with no offsetting settlements. Global Automotive contributed $14.7 million of net favorable development, primarily attributable to favorability in the frequency assumptions in the U.S. service contract products. For the six months ended June 30, 2024, 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.
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
Global Housing contributed $62.8 million and $48.4 million of net favorable loss development for the six months ended June 30, 2025 and 2024, respectively. The net favorable loss development for the six months ended June 30, 2025 consisted of favorable non-catastrophe development of $63.4 million and $0.6 million of net unfavorable development from prior catastrophe events. The favorable non-catastrophe development was driven by $58.2 million from lender-placed hazard due to easing inflation and lower frequency as observed by favorable actual loss emergence data compared to prior estimates. The net favorable loss development for the six months ended June 30, 2024 was primarily attributable to favorable frequency, easing inflation and legislative reform changes in Florida.
The sharing economy and small commercial businesses, reported within non-core operations, contributed $3.0 million and $6.9 million in net unfavorable loss development during the six months ended June 30, 2025 and 2024, respectively. The $3.0 million in net unfavorable loss development was primarily attributable to sharing economy due to the deterioration in the anticipated portion and amount of claims exceeding the per policy deductible. The net unfavorable loss development for the six months ended June 30, 2024 was primarily attributable to more newly reported claims than expected and an increase in the portion and amount of claims anticipated to exceed the per policy deducible.
All others contributed $2.7 million and $6.5 million of net favorable loss development for the six months ended June 30, 2025 and 2024 respectively.
Long-Duration Contracts
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 U.S. 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:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Present value of expected net premiums | |||||||||||
| Balance, beginning of period | $ | 36.4 | $ | 36.4 | |||||||
| Beginning balance at original discount rate | 34.0 | 36.5 | |||||||||
| Effect of changes in cash flow assumptions | — | (1.0) | |||||||||
| Effect of actual variances from expected experience | — | 0.9 | |||||||||
| Adjusted beginning of period balance | 34.0 | 36.4 | |||||||||
| Experience variance (1) | 0.1 | 0.1 | |||||||||
| Interest accrual | 1.6 | 3.4 | |||||||||
| Net premiums collected | (2.8) | (5.9) | |||||||||
| Ending balance at original discount rate | 32.9 | 34.0 | |||||||||
| Effect of changes in discount rate assumptions | 1.5 | 2.4 | |||||||||
| Balance, end of period | $ | 34.4 | $ | 36.4 | |||||||
| Present value of expected future policy benefits | |||||||||||
| Balance, beginning of period | $ | 506.4 | $ | 450.6 | |||||||
| Beginning balance at original discount rate | 452.9 | 453.0 | |||||||||
| Effect of actual variances from expected experience | — | 1.5 | |||||||||
| Adjusted beginning of period balance | 452.9 | 454.5 | |||||||||
| Experience variance (1) | (3.1) | (1.3) | |||||||||
| Interest accrual | 13.0 | 26.2 | |||||||||
| Benefit payments | (14.7) | (26.5) | |||||||||
| Ending balance at original discount rate | 448.1 | 452.9 | |||||||||
| Effect of changes in discount rate assumptions | 34.2 | 53.5 | |||||||||
| Balance, end of period | $ | 482.3 | $ | 506.4 | |||||||
| Net future policy benefits and expenses | $ | 447.9 | $ | 470.0 | |||||||
| Related reinsurance recoverable | 447.9 | 470.0 | |||||||||
| Net future policy benefits and expenses, after reinsurance recoverable | $ | — | $ | — | |||||||
| Weighted-average liability duration of the future policy benefits and expenses (in years) | 11.1 | 11.4 |
(1)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:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Long-term care | $ | 447.9 | $ | 470.0 | |||||||
| Other | 63.8 | 66.7 | |||||||||
| Total | $ | 511.7 | $ | 536.7 |
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:
| June 30, 2025 | December 31, 2024 | ||||||||||
| Expected future benefits payments | $ | 785.5 | $ | 804.4 | |||||||
| Expected future gross premiums | $ | 59.0 | $ | 61.9 |
The following table presents the amount of long-term care revenue and interest recognized in the consolidated statements of operations:
| June 30, 2025 | June 30, 2024 | ||||||||||
| Gross premiums | $ | 1.4 | $ | 1.5 | |||||||
| Interest expense (original discount rate) | $ | 5.7 | $ | 5.7 |
The following table presents the weighted-average interest rate for long-term care insurance contracts:
| June 30, 2025 | June 30, 2024 | ||||||||||
| Interest expense (original discount rate) | 5.95 | % | 5.95 | % | |||||||
| Current discount rate | 5.05 | % | 5.28 | % |
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 June 30, 2025 | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | Net unrealized losses on investments | Net unrealized gains on derivative transactions | Unamortized net losses on Pension Plans | Accumulated other comprehensive loss | |||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | (406.4) | $ | (216.7) | $ | 3.6 | $ | (129.0) | $ | (748.5) | |||||||||||||||||||
| Change in accumulated other comprehensive income (loss) before reclassifications | 43.9 | 52.5 | 0.8 | — | 97.2 | ||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | — | 16.7 | (0.2) | 0.2 | 16.7 | ||||||||||||||||||||||||
| Net current-period other comprehensive income (loss) | 43.9 | 69.2 | 0.6 | 0.2 | 113.9 | ||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | (362.5) | $ | (147.5) | $ | 4.2 | $ | (128.8) | $ | (634.6) | |||||||||||||||||||
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
| Three Months Ended June 30, 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 March 31, 2024 | $ | (360.4) | $ | (337.7) | $ | 5.3 | $ | (118.4) | $ | (811.2) | |||||||||||||||||||
| Change in accumulated other comprehensive income (loss) before reclassifications | (15.1) | (34.0) | 1.6 | — | (47.5) | ||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | — | 11.0 | (2.5) | (2.5) | 6.0 | ||||||||||||||||||||||||
| Net current-period other comprehensive income (loss) | (15.1) | (23.0) | (0.9) | (2.5) | (41.5) | ||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | (375.5) | $ | (360.7) | $ | 4.4 | $ | (120.9) | $ | (852.7) | |||||||||||||||||||
| Six Months Ended June 30, 2025 | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | Net unrealized gains (losses) on investments | Net unrealized gains on derivative transactions | Unamortized net losses on Pension Plans | Accumulated other comprehensive loss | |||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | (415.2) | $ | (291.9) | $ | 2.2 | $ | (131.2) | $ | (836.1) | |||||||||||||||||||
| Change in accumulated other comprehensive income (loss) before reclassifications | 52.7 | 114.3 | 2.5 | — | 169.5 | ||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | — | 30.1 | (0.5) | 2.4 | 32.0 | ||||||||||||||||||||||||
| Net current-period other comprehensive income (loss) | 52.7 | 144.4 | 2.0 | 2.4 | 201.5 | ||||||||||||||||||||||||
| Balance at June 30, 2025 | $ | (362.5) | $ | (147.5) | $ | 4.2 | $ | (128.8) | $ | (634.6) | |||||||||||||||||||
| Six Months Ended June 30, 2024 | |||||||||||||||||||||||||||||
| Foreign currency translation adjustment | Net unrealized gains on investments | Net unrealized gains on derivative transactions | Unamortized net losses on Pension Plans | Accumulated other comprehensive loss | |||||||||||||||||||||||||
| Balance at December 31, 2023 | $ | (351.9) | $ | (305.5) | $ | 8.5 | $ | (116.1) | $ | (765.0) | |||||||||||||||||||
| Change in accumulated other comprehensive income (loss) before reclassifications | (23.6) | (77.8) | 1.5 | — | (99.9) | ||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive income (loss) | — | 22.6 | (5.6) | (4.8) | 12.2 | ||||||||||||||||||||||||
| Net current-period other comprehensive income (loss) | (23.6) | (55.2) | (4.1) | (4.8) | (87.7) | ||||||||||||||||||||||||
| Balance at June 30, 2024 | $ | (375.5) | $ | (360.7) | $ | 4.4 | $ | (120.9) | $ | (852.7) |
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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||
| Net unrealized losses on investments | $ | 21.1 | $ | 13.9 | $ | 38.1 | $ | 28.6 | Net realized losses on investments and fair value changes to equity securities | ||||||||||||||||||||
| (4.4) | (2.9) | (8.0) | (6.0) | Provision for income taxes | |||||||||||||||||||||||||
| $ | 16.7 | $ | 11.0 | $ | 30.1 | $ | 22.6 | Net of tax | |||||||||||||||||||||
| Net unrealized (gains) losses on derivative transactions related to: | |||||||||||||||||||||||||||||
| Interest rate derivatives | $ | (0.7) | $ | (0.7) | $ | (1.4) | $ | (1.4) | Interest expense | ||||||||||||||||||||
| Foreign exchange derivatives | 0.5 | (2.5) | 0.8 | (5.7) | Underwriting, selling, general and administrative expenses | ||||||||||||||||||||||||
| (0.2) | (3.2) | (0.6) | (7.1) | ||||||||||||||||||||||||||
| — | 0.7 | 0.1 | 1.5 | Provision for income taxes | |||||||||||||||||||||||||
| $ | (0.2) | $ | (2.5) | $ | (0.5) | $ | (5.6) | Net of tax | |||||||||||||||||||||
| Amortization of pension and postretirement unrecognized net periodic benefit cost: | |||||||||||||||||||||||||||||
| Amortization of net loss | $ | 0.3 | $ | 0.3 | $ | 0.6 | $ | 0.6 | (1) | ||||||||||||||||||||
| Amortization of prior service credit | — | (3.5) | — | (6.8) | (1) | ||||||||||||||||||||||||
| Settlement loss | — | — | 2.5 | — | (1) | ||||||||||||||||||||||||
| 0.3 | (3.2) | 3.1 | (6.2) | ||||||||||||||||||||||||||
| (0.1) | 0.7 | (0.7) | 1.4 | Provision for income taxes | |||||||||||||||||||||||||
| $ | 0.2 | $ | (2.5) | $ | 2.4 | $ | (4.8) | Net of tax | |||||||||||||||||||||
| Total reclassifications for the period | $ | 16.7 | $ | 6.0 | $ | 32.0 | $ | 12.2 | 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 June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Net income | $ | 235.3 | $ | 188.7 | $ | 381.9 | $ | 425.1 | |||||||||||||||
| Less: Common stock dividends paid | (42.7) | (39.9) | (83.6) | (77.3) | |||||||||||||||||||
| Undistributed earnings | $ | 192.6 | $ | 148.8 | $ | 298.3 | $ | 347.8 | |||||||||||||||
| Denominator | |||||||||||||||||||||||
| Weighted average common shares outstanding used in basic per common share calculations | 51,135,518 | 52,500,727 | 51,208,066 | 52,516,296 | |||||||||||||||||||
| Incremental common shares from: | |||||||||||||||||||||||
| PSUs | 393,648 | 167,770 | 468,222 | 249,421 | |||||||||||||||||||
| ESPP | 42,899 | 49,239 | 42,899 | 49,239 | |||||||||||||||||||
| Weighted average common shares outstanding used in diluted per common share calculations | 51,572,065 | 52,717,736 | 51,719,187 | 52,814,956 | |||||||||||||||||||
| Earnings per common share – Basic | |||||||||||||||||||||||
| Distributed earnings | $ | 0.83 | $ | 0.76 | $ | 1.63 | $ | 1.47 | |||||||||||||||
| Undistributed earnings | 3.77 | 2.83 | 5.83 | 6.62 | |||||||||||||||||||
| Net income | $ | 4.60 | $ | 3.59 | $ | 7.46 | $ | 8.09 | |||||||||||||||
| Earnings per common share – Diluted | |||||||||||||||||||||||
| Distributed earnings | $ | 0.83 | $ | 0.76 | $ | 1.61 | $ | 1.46 | |||||||||||||||
| Undistributed earnings | 3.73 | 2.82 | 5.77 | 6.59 | |||||||||||||||||||
| Net income | $ | 4.56 | $ | 3.58 | $ | 7.38 | $ | 8.05 |
Average PSUs totaling 50,586 and 93,963 for the three months ended June 30, 2025 and 2024, respectively, were anti-dilutive and thus not included in the computation of diluted EPS under the treasury stock method. Average PSUs totaling 29,916 and 55,263 for the six months ended June 30, 2025 and 2024, 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. The Pension Benefits were frozen on March 1, 2016.
In addition, the Company provides certain health care benefits (“Retirement Health Benefits”) and life benefits (together, “Plan Benefits”) for retired employees and their dependents. Retirement Health Benefits were terminated effective December 31, 2024 (the “Termination Date”). Benefits were paid through 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 Pension Benefits and Plan Benefits for the three and six months ended June 30, 2025 and 2024:
| Qualified Pension Benefits | Unfunded Non-qualified Pension Benefits | Plan Benefits | |||||||||||||||||||||||||||||||||
| For the Three Months Ended June 30, | For the Three Months Ended June 30, | For the Three Months Ended June 30, | |||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||
| Interest cost | $ | 6.2 | $ | 6.6 | $ | 0.7 | $ | 0.5 | $ | — | $ | 0.1 | |||||||||||||||||||||||
| Expected return on plan assets | (9.6) | (10.2) | — | — | — | (0.4) | |||||||||||||||||||||||||||||
| Amortization of prior service credit | — | — | — | — | — | (3.5) | |||||||||||||||||||||||||||||
| Amortization of net loss | — | — | 0.3 | 0.3 | — | — | |||||||||||||||||||||||||||||
| Settlement loss | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Net periodic benefit cost | $ | (3.4) | $ | (3.6) | $ | 1.0 | $ | 0.8 | $ | — | $ | (3.8) | |||||||||||||||||||||||
| Qualified Pension Benefits | Unfunded Nonqualified Pension Benefits | Plan Benefits | |||||||||||||||||||||||||||||||||
| For the Six Months Ended June 30, | For the Six Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||
| Interest cost | $ | 12.5 | $ | 13.3 | $ | 1.3 | $ | 1.1 | $ | — | $ | 0.1 | |||||||||||||||||||||||
| Expected return on plan assets | (19.3) | (20.2) | — | — | — | (0.7) | |||||||||||||||||||||||||||||
| Amortization of prior service credit | — | — | — | — | — | (6.8) | |||||||||||||||||||||||||||||
| Amortization of net loss (gain) | — | — | 0.6 | 0.6 | — | — | |||||||||||||||||||||||||||||
| Settlement loss | — | — | — | — | 2.5 | — | |||||||||||||||||||||||||||||
| Net periodic benefit cost | $ | (6.8) | $ | (6.9) | $ | 1.9 | $ | 1.7 | $ | 2.5 | $ | (7.4) |
The Assurant Pension Plan funded status was $87.1 million at June 30, 2025 and $84.1 million at December 31, 2024 (based on the fair value of the assets compared to the accumulated benefit obligation). This equates to a 118% and 117% funded status at June 30, 2025 and December 31, 2024. During the six months ended June 30, 2025, 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 2025.
13. 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 $1.7 million and $1.8 million of letters of credit outstanding as of June 30, 2025 and December 31, 2024, respectively.
Legal and Regulatory Matters
The Company is involved in a variety of litigation and legal and regulatory proceedings relating to its current and past business operations and, from time to time, it may become involved in other such actions. The Company continues to defend itself vigorously in these proceedings. The Company has participated and may participate in settlements on terms that the Company considers reasonable.
The Company has established an accrued liability for certain legal and regulatory proceedings. The possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and uncertain. Consequently, no 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
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)
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.
Next: Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations