filings.toolsItem 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
(In millions, except number of shares and per share amounts)
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) and the annual audited consolidated financial statements for the year ended December 31, 2024 and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited consolidated financial statements for the three and nine months ended September 30, 2025 and accompanying notes (the “Consolidated Financial Statements”) included elsewhere in this Quarterly Report on Form 10-Q (this “Report”). The following discussion and analysis covers the three and nine months ended September 30, 2025 (“Third Quarter 2025” and “Nine Months 2025”) and the three and nine months ended September 30, 2024 (“Third Quarter 2024” and “Nine Months 2024”).
Some of the statements in this Report, including our business and financial plans and any statements regarding our anticipated future financial performance, business prospects, growth and operating strategies and similar matters, may constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these statements by the use of words such as “outlook,” “objective,” “will,” “may,” “can,” “anticipates,” “expects,” “estimates,” “projects,” “intends,” “plans,” “believes,” “targets,” “forecasts,” “potential,” “approximately,” and the negative version of those words and other words and terms with a similar meaning. Any forward-looking statements contained in this Report are based upon our historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that our future plans, estimates or expectations will be achieved. Our actual results might differ materially from those projected in the forward-looking statements. We undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments. The following factors could cause our actual results to differ materially from those currently estimated by management:
(i)the impact of general economic, financial market and political conditions and conditions in the markets in which we operate, including inflation, tariff policies in the United States and abroad, global supply chain impacts and recessionary pressures;
(ii)the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or if they disintermediate us, or if those parties face financial, reputational or regulatory issues;
(iii)significant competitive pressures, changes in customer preferences and disruption;
(iv)the failure to execute our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce;
(v)the failure to find suitable acquisitions at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively or achieve organic growth;
(vi)our inability to recover should we experience a business continuity event;
(vii)the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;
(viii)risks related to our international operations;
(ix)declines in the value and availability of mobile devices, and regulatory compliance or other risks in our mobile business;
(x)our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;
(xi)risks associated with joint ventures, franchises and investments in which we share ownership and management with third parties;
(xii)the impact of catastrophe and non-catastrophe losses, including as a result of the current inflationary environment and climate change;
(xiii)negative publicity relating to our business, practices, industry or clients;
(xiv)the adequacy of reserves established for claims and our inability to accurately predict and price for claims and other costs;
(xv)a decline in financial strength ratings of our insurance subsidiaries or in our corporate senior debt ratings;
(xvi)fluctuations in exchange rates, including in the current environment;
(xvii)an impairment of goodwill or other intangible assets;
(xviii)the failure to maintain effective internal control over financial reporting;
(xix)unfavorable conditions in the capital and credit markets;
(xx)a decrease in the value of our investment portfolio, including due to market, credit and liquidity risks, and changes in interest rates;
(xxi)an impairment in the value of our deferred tax assets;
(xxii)the unavailability or inadequacy of reinsurance coverage and the credit risk of reinsurers, including those to whom we have sold business through reinsurance;
(xxiii)the credit risk of some of our agents, third-party administrators and clients;
(xxiv)the inability of our subsidiaries to pay sufficient dividends to the holding company and limitations on our ability to declare and pay dividends or repurchase shares;
(xxv)limitations in the analytical models we use to assist in our decision-making;
(xxvi)the failure to effectively maintain and modernize our technology systems and infrastructure, or the failure to integrate those of acquired businesses;
(xxvii)breaches of our technology systems or those of third parties with whom we do business, or the failure to protect the security of data in such systems, including due to cyberattacks and as a result of working remotely;
(xxviii)the costs of complying with, or the failure to comply with, extensive laws and regulations to which we are subject, including those related to privacy, data security, data protection and tax;
(xxix)the impact of litigation and regulatory actions;
(xxx)reductions or deferrals in the insurance premiums we charge;
(xxxi)changes in insurance, tax and other regulations;
(xxxii)volatility in our common stock price and trading volume; and
(xxxiii)employee misconduct.
For additional information on factors that could affect our actual results, please refer to “Critical Factors Affecting Results” below and in Item 7 of our 2024 Annual Report, and “Item 1A—Risk Factors” below and in our 2024 Annual Report.
Segment Information
As of September 30, 2025, we had two reportable operating segments which are defined based on the manner in which the Company’s chief operating decision maker, our CEO, reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered:
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Global Lifestyle: includes mobile device solutions (including extended service contracts, insurance policies and related services), extended service contracts and related services for consumer electronics and appliances, and financial services 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”); and
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Global Housing: includes 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”).
In addition, we report the Corporate and Other segment, which includes corporate employee-related expenses and activities of the holding company.
We define Adjusted EBITDA, our segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, 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 above).
Executive Summary
Summary of Financial Results
Consolidated net income increased $131.8 million, or 99%, to $265.6 million for Third Quarter 2025 from $133.8 million for Third Quarter 2024, primarily due to lower reportable catastrophes and growth within Global Housing and Global Lifestyle, partially offset by a higher effective tax rate.
Global Lifestyle Adjusted EBITDA increased $22.5 million, or 12%, to $206.8 million for Third Quarter 2025 from $184.3 million for Third Quarter 2024, driven by double-digit earnings growth across both Connected Living and Global Automotive. In Connected Living, results benefited from contributions from a new financial services program, as well as global subscriber growth and trade-in performance in mobile. In Global Automotive, results included a non-run rate benefit of $6.1 million and improved loss experience.
Global Lifestyle net earned premiums, fees and other income increased $156.7 million, or 7%, to $2.41 billion for Third Quarter 2025 from $2.25 billion for Third Quarter 2024, primarily driven by Connected Living growth from mobile protection and trade-in programs, and a new program in financial services, as well as contributions from Global Automotive.
Global Housing Adjusted EBITDA increased $163.9 million, or 177%, to $256.3 million for Third Quarter 2025 from $92.4 million for Third Quarter 2024. Results included $133.9 million of lower pre-tax reportable catastrophes. Excluding reportable catastrophes, Adjusted EBITDA increased $30.0 million, or 13%, driven by the previously disclosed $27.5 million unfavorable non-run rate adjustment in Third Quarter 2024. Underlying results were driven by favorable non-catastrophe loss experience, including lower claims frequency, and top-line growth, including higher lender-placed policies in-force which benefitted from voluntary insurance market pressure, partially offset by lower favorable prior-period reserve development.
Global Housing net earned premiums, fees and other income increased $99.1 million, or 16%, to $702.9 million for Third Quarter 2025 from $603.8 million for Third Quarter 2024, driven by the aforementioned run-rate adjustment from the prior year period, growth in policies in-force and higher average premiums within lender-placed, as well as growth in Renters and Other and across various specialty products within Homeowners.
Corporate and Other Adjusted EBITDA decreased $1.8 million, or 6%, to $(31.6) million for Third Quarter 2025 from $(29.8) million for Third Quarter 2024, driven by lower net investment income.
Critical Factors Affecting Results
Our results depend on, among other things, the appropriateness of our product pricing, underwriting, the accuracy of our reserving methodology for future policyholder benefits and claims, the frequency and severity of reportable and non-reportable catastrophes, returns on and values of invested assets, our investment income, and our ability to realize greater operational efficiencies and manage our expenses. Our results also depend on our ability to profitably grow our businesses, including our Connected Living, Global Automotive, and Renters and Other businesses, and the performance of our Homeowners business. Factors affecting these items, including tariffs, consumer demand and global supply chain disruptions, conditions in the financial markets, the global economy and recessionary pressures, political conditions and the markets in which we operate, fluctuations in exchange rates, interest rates and inflation (which have impacted claims costs), may have a material adverse effect on our results of operations or financial condition. Tariff policies in the U.S. and abroad could impact claims costs and may affect consumer demand for certain products. For more information on these and other factors that could affect our results, see “Item 1A—Risk Factors” below and in our 2024 Annual Report, and “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Factors Affecting Results” in our 2024 Annual Report.
Our results may also be impacted by our ability to continue to grow in the markets in which we operate, which will be impacted by our ability to provide a superior customer experience, including from our investments in technology and digital initiatives, to capitalize on the connected home opportunity, and to onboard and ramp-up new business. Our mobile business is subject to volatility in mobile device trade-in volumes and margins based on the actual and anticipated timing of the release of new devices, carrier promotional programs and sales prices for used devices, as well as to changes in consumer preferences. Our Homeowners revenue is impacted by changes in the housing market, as well as the voluntary insurance market. In addition, across many of our businesses, we must respond to competitive pressures, including the threat of disruption and competition for talent, which has increased due to labor shortages and wage inflation. See “Item 1A—Risk Factors—Business, Strategic and Operational Risks—Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations”, “—Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks” and “—The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce” in our 2024 Annual Report.
Critical Accounting Policies and Estimates
Our 2024 Annual Report describes the accounting policies and estimates that are critical to the understanding of our results of operations, financial condition and liquidity. The accounting policies and estimation process described in the 2024 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for Third Quarter 2025.
Recent Accounting Pronouncements
For a discussion of recent accounting pronouncements, see Note 3 to the Consolidated Financial Statements included elsewhere in this Report.
Results of Operations
Assurant Consolidated
The table below presents information regarding our consolidated results of operations for the periods indicated:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Net earned premiums | $ | 2,627.2 | $ | 2,417.2 | $ | 7,777.2 | $ | 7,238.3 | |||||||||||||||
| Fees and other income | 484.4 | 439.1 | 1,351.0 | 1,200.0 | |||||||||||||||||||
| Net investment income | 133.5 | 129.7 | 387.0 | 381.1 | |||||||||||||||||||
| Net realized losses on investments and fair value changes to equity securities | (13.6) | (18.3) | (51.3) | (46.7) | |||||||||||||||||||
| Total revenues | 3,231.5 | 2,967.7 | 9,463.9 | 8,772.7 | |||||||||||||||||||
| Benefits, losses and expenses: | |||||||||||||||||||||||
| Policyholder benefits | 709.6 | 776.8 | 2,210.8 | 2,096.0 | |||||||||||||||||||
| Underwriting, selling, general and administrative expenses | 2,161.5 | 2,012.7 | 6,366.5 | 5,919.2 | |||||||||||||||||||
| Interest expense | 27.9 | 26.7 | 81.4 | 80.2 | |||||||||||||||||||
| Loss on extinguishment of debt | 1.3 | — | 1.3 | — | |||||||||||||||||||
| Total benefits, losses and expenses | 2,900.3 | 2,816.2 | 8,660.0 | 8,095.4 | |||||||||||||||||||
| Income before provision for income taxes | 331.2 | 151.5 | 803.9 | 677.3 | |||||||||||||||||||
| Provision for income taxes | 65.6 | 17.7 | 156.4 | 118.4 | |||||||||||||||||||
| Net income | $ | 265.6 | $ | 133.8 | $ | 647.5 | $ | 558.9 | |||||||||||||||
For the Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024
Net income increased $131.8 million, or 99%, to $265.6 million for Third Quarter 2025 from $133.8 million for Third Quarter 2024, primarily due to $107.6 million of lower after-tax reportable catastrophes and higher Global Housing and Global Lifestyle earnings. The increase in net income was partially offset by a higher annualized effective tax rate, mainly due to higher transferable tax credits reported in the prior year.
For the Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Net income increased $88.6 million, or 16%, to $647.5 million for Nine Months 2025 from $558.9 million for Nine Months 2024, primarily driven by higher Global Housing and Global Lifestyle earnings. The increase in net income was partially offset by a higher annualized effective tax rate, mainly due to higher transferable tax credits and a tax benefit for the release of a valuation allowance on foreign deferred tax assets recorded in the prior year, and $12.1 million of lower after-tax gain related to benefit plan activity due to the termination of the retirement health benefits plan on December 31, 2024.
Global Lifestyle
The table below presents information regarding the Global Lifestyle segment’s results of operations for the periods indicated:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | 1,973.3 | $ | 1,857.8 | $ | 5,854.8 | $ | 5,553.7 | |||||||||||||||
| Fees and other income | 432.9 | 391.7 | 1,208.8 | 1,067.1 | |||||||||||||||||||
| Net investment income | 90.9 | 88.4 | 262.6 | 264.3 | |||||||||||||||||||
| Total revenues | 2,497.1 | 2,337.9 | 7,326.2 | 6,885.1 | |||||||||||||||||||
| Benefits, losses and expenses | |||||||||||||||||||||||
| Policyholder benefits | 486.0 | 448.3 | 1,389.9 | 1,277.8 | |||||||||||||||||||
| Selling and underwriting expenses | 1,231.2 | 1,179.5 | 3,727.2 | 3,550.0 | |||||||||||||||||||
| Cost of sales | 249.0 | 224.8 | 665.2 | 593.2 | |||||||||||||||||||
| General expenses | 324.1 | 301.0 | 937.9 | 882.4 | |||||||||||||||||||
| Total benefits, losses and expenses | 2,290.3 | 2,153.6 | 6,720.2 | 6,303.4 | |||||||||||||||||||
| Global Lifestyle Adjusted EBITDA | $ | 206.8 | $ | 184.3 | $ | 606.0 | $ | 581.7 | |||||||||||||||
| Net earned premiums, fees and other income: | |||||||||||||||||||||||
| Connected Living | $ | 1,357.2 | $ | 1,223.5 | $ | 3,917.0 | $ | 3,512.3 | |||||||||||||||
| Global Automotive | 1,049.0 | 1,026.0 | 3,146.6 | 3,108.5 | |||||||||||||||||||
| Total | $ | 2,406.2 | $ | 2,249.5 | $ | 7,063.6 | $ | 6,620.8 | |||||||||||||||
| Net earned premiums, fees and other income: | |||||||||||||||||||||||
| Domestic | $ | 1,834.2 | $ | 1,747.3 | $ | 5,425.6 | $ | 5,149.0 | |||||||||||||||
| International | 572.0 | 502.2 | 1,638.0 | 1,471.8 | |||||||||||||||||||
| Total | $ | 2,406.2 | $ | 2,249.5 | $ | 7,063.6 | $ | 6,620.8 |
For the Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024
Adjusted EBITDA increased $22.5 million, or 12%, to $206.8 million for Third Quarter 2025 from $184.3 million for Third Quarter 2024, primarily driven by contributions from a new financial services program, mobile subscriber growth and performance of global mobile trade-in programs within Connected Living, as well as growth in Global Automotive, including a non-run rate benefit of $6.1 million and improved loss experience.
Total revenues increased $159.2 million, or 7%, to $2.50 billion for Third Quarter 2025 from $2.34 billion for Third Quarter 2024. Net earned premiums increased $115.5 million, or 6%, primarily driven by Connected Living from global mobile subscriber growth and a new financial services program, as well as modest growth in Global Automotive. Fees and other income increased $41.2 million, or 11%, primarily driven by growth in global mobile trade-in programs within Connected Living. Net investment income increased $2.5 million, or 3%, primarily due to higher asset balances and yields in fixed maturity securities.
Total benefits, losses and expenses increased $136.7 million, or 6%, to $2.29 billion for Third Quarter 2025 from $2.15 billion for Third Quarter 2024. Selling and underwriting expenses increased $51.7 million, or 4%, primarily due to an increase in commission expenses in Connected Living, mainly related to the growth from global mobile device protection programs in line with the increase in net earned premiums. Policyholder benefits increased $37.7 million, or 8%, primarily due to a new financial services program, partially offset by decline in Global Automotive. Cost of sales increased $24.2 million, or 11%, mainly driven by growth in global mobile trade-in programs. General expenses increased $23.1 million, or 8%, primarily due to higher employee-related and information technology expenses to support growth initiatives.
For the Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Adjusted EBITDA increased $24.3 million, or 4%, to $606.0 million for Nine Months 2025 from $581.7 million for Nine Months 2024, primarily due to Connected Living growth, mainly from growth from international mobile device protection programs and U.S. financial services, and improved loss experience in Global Automotive. The increase in Adjusted EBITDA
was partially offset by a decrease within U.S. mobile device protection programs and the unfavorable impact of foreign exchange.
Total revenues increased $441.1 million, or 6%, to $7.33 billion for Nine Months 2025 from $6.89 billion for Nine Months 2024. Net earned premiums increased $301.1 million, or 5%, primarily driven by growth in Connected Living from mobile subscriber growth and a new program in financial services, partially offset by a decline in domestic extended service contracts and the unfavorable impact of foreign exchange. Fees and other income increased $141.7 million, or 13%, primarily due to growth from global mobile trade-in programs and a new program in financial services. Net investment income decreased $1.7 million, or 1%, primarily due to lower income from real estate, cash and short-term investments, partially offset by higher income due to higher yields and asset balances in fixed maturity securities.
Total benefits, losses and expenses increased $416.8 million, or 7%, to $6.72 billion for Nine Months 2025 from $6.30 billion for Nine Months 2024. Selling and underwriting expenses increased $177.2 million, or 5%, primarily due to an increase in commission expenses in Connected Living, mainly related to the growth from global mobile device protection programs in line with the increase in net earned premiums. Policyholder benefits increased $112.1 million, or 9%, primarily due to a new financial services program in Connected Living, partially offset by lower losses within Global Automotive. Cost of sales increased $72.0 million, or 12%, driven by growth in global mobile trade-in programs. General expenses increased $55.5 million, or 6%, primarily due to higher employee-related and information technology expenses to support growth initiatives.
Global Housing
The table below presents information regarding the Global Housing segment’s results of operations for the periods indicated:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | 651.4 | $ | 557.0 | $ | 1,916.9 | $ | 1,678.0 | |||||||||||||||
| Fees and other income | 51.5 | 46.8 | 140.5 | 131.6 | |||||||||||||||||||
| Net investment income | 36.0 | 31.7 | 104.1 | 90.1 | |||||||||||||||||||
| Total revenues | 738.9 | 635.5 | 2,161.5 | 1,899.7 | |||||||||||||||||||
| Benefits, losses and expenses | |||||||||||||||||||||||
| Policyholder benefits | 221.9 | 323.3 | 813.6 | 803.5 | |||||||||||||||||||
| Selling and underwriting expenses | 54.9 | 40.6 | 146.8 | 113.5 | |||||||||||||||||||
| General expenses | 205.8 | 179.2 | 618.0 | 536.9 | |||||||||||||||||||
| Total benefits, losses and expenses | 482.6 | 543.1 | 1,578.4 | 1,453.9 | |||||||||||||||||||
| Global Housing Adjusted EBITDA | $ | 256.3 | $ | 92.4 | $ | 583.1 | $ | 445.8 | |||||||||||||||
| Impact of reportable catastrophes | $ | 2.9 | $ | 136.8 | $ | 189.4 | $ | 195.2 | |||||||||||||||
| Net earned premiums, fees and other income | |||||||||||||||||||||||
| Homeowners | $ | 553.9 | $ | 478.4 | $ | 1,629.6 | $ | 1,438.5 | |||||||||||||||
| Renters and Other | 149.0 | 125.4 | 427.8 | 371.1 | |||||||||||||||||||
| Total | $ | 702.9 | $ | 603.8 | $ | 2,057.4 | $ | 1,809.6 |
For the Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024
Adjusted EBITDA increased $163.9 million, or 177%, to $256.3 million for Third Quarter 2025 from $92.4 million for Third Quarter 2024, mainly due to $133.9 million of lower pre-tax reportable catastrophes, the previously disclosed $27.5 million unfavorable non-run rate adjustment from Third Quarter 2024 and continued growth within Homeowners, including lower claims frequency and higher lender-placed policies in-force which benefitted from voluntary insurance market pressure. The increase in Adjusted EBITDA was partially offset by $16.2 million of lower year-over-year favorable non-catastrophe prior period reserve development, as well as higher costs associated with growth. Third Quarter 2025 had $28.5 million of favorable non-catastrophe prior period reserve development compared to $44.7 million in Third Quarter 2024.
Total revenues increased $103.4 million, or 16%, to $738.9 million for Third Quarter 2025 from $635.5 million for Third Quarter 2024. Net earned premiums increased $94.4 million, or 17%, primarily driven by the non-run rate adjustment described above, growth in Homeowners from higher lender-placed policies in-force and average premiums, growth in Renters and Other, primarily from a block of newly acquired renters policies, and growth across various specialty products within Homeowners. Fees and other income increased $4.7 million, or 10%, primarily driven by continued growth in service fees within Homeowners. Net investment income increased $4.3 million, or 14%, primarily due to higher invested asset balances and yields.
Total benefits, losses and expenses decreased $60.5 million, or 11%, to $482.6 million for Third Quarter 2025 from $543.1 million for Third Quarter 2024. Policyholder benefits decreased $101.4 million, or 31%, due to lower reportable catastrophes and lower non-catastrophe claims frequency, partially offset by $16.2 million of lower year-over-year favorable non-catastrophe prior period reserve development. General expenses increased $26.6 million, or 15%, and selling and underwriting expenses increased $14.3 million, or 35%, both primarily due to higher costs associated with growth.
For the Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Adjusted EBITDA increased $137.3 million, or 31%, to $583.1 million for Nine Months 2025 from $445.8 million for Nine Months 2024, mainly due to continued growth from higher lender-placed policies in-force and average premiums within Homeowners, lower non-catastrophe loss experience, the previously disclosed $27.5 million unfavorable non-run rate adjustment from Nine Months 2024, and higher net investment income and fee income. The increase in Adjusted EBITDA was
partially offset by higher costs associated with growth and higher catastrophe reinsurance premiums from the 2024 program restructuring.
Total revenues increased $261.8 million, or 14%, to $2.16 billion for Nine Months 2025 from $1.90 billion for Nine Months 2024. Net earned premiums increased $238.9 million, or 14%, primarily driven by Homeowners from higher lender-placed policies in-force, average premiums and growth across various specialty products, growth in Renters and Other primarily from a block of newly acquired renters policies, and the non-run rate adjustment described above, partially offset by higher catastrophe reinsurance premiums. Net investment income increased $14.0 million, or 16%, primarily due to higher invested asset balances and yields. Fees and other income increased $8.9 million, or 7%, primarily driven by continued growth in service fees within Homeowners.
Total benefits, losses and expenses increased $124.5 million, or 9%, to $1.58 billion for Nine Months 2025 from $1.45 billion for Nine Months 2024. General expenses increased $81.1 million, or 15%, and selling and underwriting expenses increased $33.3 million, or 29%, both primarily due to higher costs associated with growth. Policyholder benefits increased $10.1 million, or 1%, primarily due to higher non-catastrophe losses from exposure growth and severity, partially offset by favorable frequency, as well as lower reportable catastrophe losses and $5.9 million of favorable year-over-year non-catastrophe prior year reserve development. Nine Months 2025 had $91.0 million of favorable non-catastrophe prior year reserve development compared to $85.1 million in Nine Months 2024.
Corporate and Other
The tables below present information regarding the Corporate and Other’s segment results of operations for the periods indicated:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Fees and other income | — | 0.1 | 1.7 | 0.4 | |||||||||||||||||||
| Net investment income | 5.7 | 7.8 | 17.1 | 20.5 | |||||||||||||||||||
| Total revenues | 5.7 | 7.9 | 18.8 | 20.9 | |||||||||||||||||||
| Benefits, losses and expenses | |||||||||||||||||||||||
| Policyholder benefits | — | — | — | — | |||||||||||||||||||
| General expenses | 37.3 | 37.7 | 108.2 | 107.4 | |||||||||||||||||||
| Total benefits, losses and expenses | 37.3 | 37.7 | 108.2 | 107.4 | |||||||||||||||||||
| Corporate and Other Adjusted EBITDA | $ | (31.6) | $ | (29.8) | $ | (89.4) | $ | (86.5) |
For the Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024
Adjusted EBITDA decreased $1.8 million, or 6%, to $(31.6) million for Third Quarter 2025 from $(29.8) million for Third Quarter 2024. The change in results was primarily due to lower net investment income.
Total revenues decreased $2.2 million, or 28%, to $5.7 million for Third Quarter 2025 from $7.9 million for Third Quarter 2024, primarily driven by a decrease in net investment income of $2.1 million, or 27%, mostly due to lower invested assets.
Total benefits, losses and expenses decreased $0.4 million, or 1%, to $37.3 million for Third Quarter 2025 from $37.7 million for Third Quarter 2024, primarily driven by lower third-party expenses.
For the Nine Months Ended September 30, 2025 Compared to the Nine Months Ended September 30, 2024
Adjusted EBITDA decreased $2.9 million, or 3%, to $(89.4) million for Nine Months 2025 from $(86.5) million for Nine Months 2024. The change in results was primarily due to lower net investment income and higher employee-related expenses.
Total revenues decreased $2.1 million, or 10%, to $18.8 million for Nine Months 2025 from $20.9 million for Nine Months 2024, primarily driven by decrease in net investment income of $3.4 million, or 17%, mainly due to lower invested assets, partially offset by an increase in fees and other income of $1.3 million, mostly due to the sale of Internet Protocol addresses.
Total benefits, losses and expenses increased $0.8 million, or 1%, to $108.2 million for Nine Months 2025 from $107.4 million for Nine Months 2024, primarily driven by higher employee-related expenses.
Investments
We had total investments of $9.78 billion and $8.54 billion as of September 30, 2025 and December 31, 2024, respectively. Net unrealized losses on our fixed maturity securities portfolio decreased $287.4 million during Nine Months 2025, from a $349.7 million unrealized loss at December 31, 2024 to a $62.3 million unrealized loss as of September 30, 2025, primarily due to a reduction in Treasury rates.
The following table shows the credit quality of our fixed maturity securities portfolio as of the dates indicated:
| Fair value as of | |||||||||||||||||||||||
| Fixed Maturity Securities by Credit Quality | September 30, 2025 | December 31, 2024 | |||||||||||||||||||||
| Aaa / Aa / A | $ | 4,616.7 | 55.7 | % | $ | 3,987.5 | 55.6 | % | |||||||||||||||
| Baa | 3,079.5 | 37.1 | % | 2,699.7 | 37.6 | % | |||||||||||||||||
| Ba | 510.3 | 6.2 | % | 415.7 | 5.8 | % | |||||||||||||||||
| B and lower | 88.2 | 1.0 | % | 72.2 | 1.0 | % | |||||||||||||||||
| Total | $ | 8,294.7 | 100.0 | % | $ | 7,175.1 | 100.0 | % |
The following table shows the major categories of net investment income for the periods indicated:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Fixed maturity securities | $ | 111.4 | $ | 99.2 | $ | 319.7 | $ | 285.9 | |||||||||||||||
| Equity securities | 3.0 | 3.3 | 9.0 | 10.1 | |||||||||||||||||||
| Commercial mortgage loans on real estate | 4.4 | 4.8 | 14.2 | 14.5 | |||||||||||||||||||
| Short-term investments | 4.2 | 4.3 | 14.1 | 13.5 | |||||||||||||||||||
| Other investments | 0.8 | 2.1 | (1.1) | 11.5 | |||||||||||||||||||
| Cash and cash equivalents | 14.0 | 19.7 | 43.7 | 58.0 | |||||||||||||||||||
| Total investment income | 137.8 | 133.4 | 399.6 | 393.5 | |||||||||||||||||||
| Investment expenses | (4.3) | (3.7) | (12.6) | (12.4) | |||||||||||||||||||
| Net investment income | $ | 133.5 | $ | 129.7 | $ | 387.0 | $ | 381.1 |
Net investment income increased $3.8 million, or 3%, to $133.5 million for Third Quarter 2025 from $129.7 million for Third Quarter 2024. The increase was primarily driven by higher assets and yields in fixed maturity securities, partially offset by reduced income due to lower yields and balances in cash and cash equivalents and reduced income in real estate joint ventures.
Net realized losses on investments and fair value changes to equity securities decreased $4.7 million, or 26%, to $13.6 million for Third Quarter 2025 from $18.3 million for Third Quarter 2024.The decrease was primarily driven by fewer impairments, as well as fewer sales of fixed maturity securities at a loss, partially offset by lower valuation adjustments in equity securities and an increase in the allowance for credit losses for commercial mortgage loans.
Net investment income increased $5.9 million, or 2%, to $387.0 million for Nine Months 2025 from $381.1 million for Nine Months 2024. The increase was primarily driven by higher assets and yields in fixed maturity securities, partially offset by reduced income in cash and cash equivalents and reduced income in real estate joint ventures and other partnerships.
Net realized losses on investments and fair value changes to equity securities increased $4.6 million, or 10%, to $51.3 million for Nine Months 2025 from $46.7 million for Nine Months 2024. The increase was primarily driven by sales of fixed maturity securities at a loss, lower valuation adjustments in equity securities and an increase in the allowance for credit losses for commercial mortgage loans, partially offset by fewer impairments.
As of September 30, 2025, we owned $15.2 million of securities guaranteed by financial guarantee insurance companies. Included in this amount was $14.1 million of municipal securities, which had a credit rating of A+ with the guarantee, but would have had a credit rating of AA- without the guarantee.
For more information on our investments, see Notes 6 and 7 to the Consolidated Financial Statements included elsewhere in this Report.
Catastrophe Reinsurance Program
Effective April 2025, coverage was placed with various reinsurers that are all rated A- or better by A.M. Best. 2025 reinsurance premiums for the total program are estimated to be $205.4 million pre-tax, compared to $188.9 million pre-tax for
- The estimate for 2025 reflects our exposure changes, expected Florida Hurricane Catastrophe Fund (“FHCF”) program impacts and favorable underlying rates from improved reinsurance market conditions. 2024 reinsurance premiums reflected a premium benefit from changing the timing of program placement to a single placement date. Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.
The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $1.76 billion of coverage in excess of a $160.0 million retention. Layers 1 through 6 of the program allow for one automatic reinstatement. When combined with the FHCF, the U.S. program protects against gross Florida losses of up to approximately $1.98 billion, in excess of retention.
Liquidity and Capital Resources
The following section discusses our ability to generate cash flows from each of our subsidiaries, borrow funds at competitive rates and raise new capital to meet our operating and growth needs. Management believes that we will have sufficient liquidity to satisfy our needs over the next twelve months, including the ability to pay interest on our debt and dividends on our common stock.
On January 22, 2025, we entered into an agreement to sell our Miami, Florida property for a purchase price of $126.0 million, subject to certain adjustments and to the buyer receiving the requisite development approvals, which could take 18 to 24 months. If the transaction is consummated pursuant to the terms of the agreement, we expect to record a gain above the current carrying value of $46.0 million as of September 30, 2025, less estimated costs to sell. We do not anticipate that any such gain will impact our capital deployment priorities. There can be no assurance that the transaction will be consummated.
Regulatory Requirements
Assurant, Inc. is a holding company and, as such, has limited direct operations of its own. Our assets consist primarily of the capital stock of our subsidiaries. Accordingly, our future cash flows depend upon the availability of dividends and other statutorily permissible payments from our subsidiaries, such as payments under our tax allocation agreement and under management agreements with our subsidiaries. Our subsidiaries’ ability to pay such dividends and make such other payments is regulated by the states and territories in which our subsidiaries are domiciled. These dividend regulations vary from jurisdiction to jurisdiction and by type of insurance provided by the applicable subsidiary, but generally require our insurance subsidiaries to maintain minimum solvency requirements and limit the amount of dividends they can pay to the holding company. See “Item 1—Business—Regulation—U.S. Insurance Regulation” and “Item 1A—Risk Factors—Legal and Regulatory Risks—Changes in insurance regulation may reduce our profitability and limit our growth” in our 2024 Annual Report. Along with solvency regulations, the primary driver in determining the amount of capital used for dividends from insurance subsidiaries is the level of capital needed to maintain desired financial strength ratings from A.M. Best Company (“A.M. Best”). For the year ending December 31, 2025, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us, under applicable laws and regulations without prior regulatory approval, is approximately $524.2 million. Our international and non-insurance subsidiaries provide additional sources of dividends.
Regulators or rating agencies could become more conservative in their methodology and criteria, increasing capital requirements for our insurance subsidiaries or the enterprise. For further information on our ratings and the risks of ratings downgrades, see “Item 1—Business—Ratings” and “Item 1A—Risk Factors—Financial Risks—A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition” in our 2024 Annual Report.
Holding Company
As of September 30, 2025, we had approximately $612.7 million in holding company liquidity, $387.7 million above our targeted minimum level of $225.0 million. The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of pre-tax corporate operating losses and interest expenses. We use the term “holding company liquidity” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc. (out of a total of $712.2 million as of September 30, 2025) which we are not otherwise holding for a specific purpose as of the balance sheet date. We can use such assets for stock repurchases, stockholder dividends, acquisitions and other corporate purposes.
Dividends or returns of capital paid by our subsidiaries, net of infusions of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $487.3 million and $804.7 million for Nine Months 2025 and Twelve Months 2024, respectively. We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to fund investments and acquisitions, and to repurchase our common stock. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions.
Dividends and Repurchases
During Nine Months 2025, we made common stock repurchases and paid dividends to our common stockholders of $330.5 million. We paid dividends of $0.80 per common share on September 29, 2025 to stockholders of record as of September 2, 2025. Any determination to pay future dividends will be at the discretion of the Board of Directors (the “Board”) and will be dependent upon various factors, including: our subsidiaries’ payments of dividends and other statutorily permissible payments to us; our results of operations and cash flows; our financial condition and capital requirements; general business conditions and growth prospects; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and any other factors the Board deems relevant. The Credit Facility (as defined below) also contains limitations on our ability to pay dividends to our stockholders and repurchase capital stock if we are in default, or such dividend payments or repurchases would cause us to be in default, of our obligations thereunder. In addition, if we elect to defer the payment of interest on our 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25% Subordinated Notes due January 2061 (refer to “—Senior and Subordinated Notes” below), we generally may not make payments on or repurchase any shares of our capital stock.
During Nine Months 2025, we repurchased 1,015,887 shares of our outstanding common stock at a cost of $206.3 million, exclusive of commissions. In November 2023, the Board authorized an additional share repurchase program for up to $600.0 million of our outstanding common stock. As of September 30, 2025, $168.3 million aggregate cost at purchase remained unused under the repurchase authorization. The timing and the amount of future repurchases will depend on various factors, including those listed above.
Assurant Subsidiaries
The primary sources of funds for our subsidiaries consist of premiums and fees collected, proceeds from the sales and maturity of investments and net investment income. Cash is primarily used to pay insurance claims, agent commissions, operating expenses and taxes. We generally invest our subsidiaries’ funds in order to generate investment income.
We conduct periodic asset liability studies to measure the duration of our insurance liabilities, to develop optimal asset portfolio maturity structures for our significant lines of business and ultimately to assess that cash flows are sufficient to meet the timing of cash needs. These studies are conducted in accordance with formal company-wide Asset Liability Management guidelines.
To complete a study for a particular line of business, models are developed to project asset and liability cash flows and balance sheet items under a varied set of plausible economic scenarios. These models consider many factors including the current investment portfolio, the required capital for the related assets and liabilities, our tax position and projected cash flows from both existing and projected new business. For risks related to modeling, see “Item 1A – Risk Factors – Financial Risks –Actual results may differ materially from the analytical models we use to assist in our decision-making in key areas such as pricing, catastrophe risks, reserving and capital management.” in our 2024 Annual Report.
Alternative asset portfolio structures are analyzed for significant lines of business. An investment portfolio maturity structure is then selected from these profiles given our return hurdle and risk appetite. Scenario testing of significant liability assumptions and new business projections is also performed.
Our liabilities generally have limited policyholder optionality, which means that the timing of payments is generally insensitive to the interest rate environment. In addition, our investment portfolio is largely comprised of highly liquid public fixed maturity securities with a sufficient component of such securities invested that are near maturity which may be sold with minimal risk of loss to meet cash needs.
Generally, our subsidiaries’ premiums, fees and investment income, along with planned asset sales and maturities, provide sufficient cash to pay claims and expenses. However, there may be instances when unexpected cash needs arise in excess of that available from usual operating sources. In such instances, we have several options to raise needed funds, including selling assets from the subsidiaries’ investment portfolios, using holding company cash (if available), issuing commercial paper, or drawing funds from the Credit Facility.
Senior and Subordinated Notes
The following table shows the principal amount and carrying value of our outstanding debt, less unamortized discount and issuance costs as applicable, as of September 30, 2025 and December 31, 2024:
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Principal Amount | Carrying Value | Principal Amount | Carrying Value | ||||||||||||||||||||
| 6.10% Senior Notes due February 2026 | $ | — | $ | — | $ | 175.0 | $ | 174.3 | |||||||||||||||
| 4.90% Senior Notes due March 2028 | 300.0 | 298.9 | 300.0 | 298.6 | |||||||||||||||||||
| 3.70% Senior Notes due February 2030 | 350.0 | 348.4 | 350.0 | 348.2 | |||||||||||||||||||
| 2.65% Senior Notes due January 2032 | 350.0 | 347.7 | 350.0 | 347.3 | |||||||||||||||||||
| 6.75% Senior Notes due February 2034 | 275.0 | 273.0 | 275.0 | 272.8 | |||||||||||||||||||
| 5.55% Senior Notes due February 2036 | 300.0 | 296.0 | — | — | |||||||||||||||||||
| 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 | 400.0 | 398.2 | 400.0 | 397.7 | |||||||||||||||||||
| 5.25% Subordinated Notes due January 2061 | 250.0 | 244.2 | 250.0 | 244.2 | |||||||||||||||||||
| Total Debt | $ | 2,206.4 | $ | 2,083.1 |
2036 Senior Notes: In August 2025, we issued senior notes due February 2036 with an aggregate principal amount of $300.0 million, which bear interest at a rate of 5.55% per year and were issued at a 0.322% discount to the public (the “2036 Senior Notes”). Interest on the 2036 Senior Notes is payable semi-annually in arrears on February 15 and August 15 of each year, beginning on February 15, 2026. Prior to November 15, 2035, we may redeem all or part of the 2036 Senior Notes at a redemption price equal to 100% of the aggregate principal amount of the 2036 Senior Notes to be redeemed, plus a make-whole premium as described in the 2036 Senior Notes and accrued and unpaid interest up to the redemption date. On or after that date, we may redeem all or part of the 2036 Senior Notes at any time at a redemption price equal to 100% of the aggregate principal amount of the 2036 Senior Notes to be redeemed, plus accrued and unpaid interest up to the redemption date.
In anticipation of the issuance of the 2036 Senior Notes, we entered into a derivative transaction to hedge the risk associated with changes in interest rates up to the date the 2036 Senior Notes were issued. We determined that the derivative qualified for cash flow hedge accounting and recognized a deferred loss of $0.7 million upon settlement which was reported through other comprehensive income. The deferred loss will be recognized in addition to the interest expense related to the 2036 Senior Notes on an effective yield basis.
In August 2025, we used the net proceeds from the sale of the 2036 Senior Notes to redeem all of the $175.0 million outstanding aggregate principal amount of our 6.10% Senior Notes due February 2026 (the “2026 Senior Notes”) at a make-whole premium plus accrued and unpaid interest up to the redemption date, to pay related fees and expenses, and for general corporate purposes. In connection with the redemption, we recognized a net loss from the extinguishment of the debt of $1.3 million, which included the make-whole premium and the remaining deferred debt issuance costs for the 2026 Senior Notes, partially offset by a gain from the termination of a hedge of the interest rate risk associated with the redeemed notes.
In the next five years, we have two debt maturities in March 2028 and February 2030 when the 2028 Senior Notes and the 2030 Senior Notes, respectively, become due and payable.
Credit Facility and Commercial Paper Program
In June 2025, we entered into a $500.0 million five-year senior unsecured revolving credit facility (the “Credit Facility”) with certain lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as syndication agent. The Credit Facility replaced our prior $500.0 million five-year senior unsecured revolving credit facility, which terminated upon the effectiveness of the Credit Facility. The Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and letters of credit from a sole issuing bank in an aggregate amount of $500.0 million, which may be increased up to $750.0 million. The Credit Facility is available until June 2030, provided we are in compliance with all covenants. The Credit Facility has a sublimit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for our commercial paper program or for general corporate purposes.
We made no borrowings under the Credit Facility or our prior $500.0 million five-year senior unsecured revolving credit facility during Nine Months 2025, and no loans were outstanding under the Credit Facility as of September 30, 2025.
Our commercial paper program requires us to maintain liquidity facilities either in an available amount equal to any outstanding notes from the program or in an amount sufficient to maintain the ratings assigned to the notes issued from the program. Our commercial paper is rated AMB-1+ by A.M. Best, P-2 by Moody’s and A-2 by S&P. Our subsidiaries do not
maintain commercial paper or other borrowing facilities. This program is currently backed up by the Credit Facility, of which $500.0 million was available as of September 30, 2025.
We did not use the commercial paper program during Nine Months 2025 and there were no amounts relating to the commercial paper program outstanding as of September 30, 2025.
Cash Flows
We monitor cash flows at the consolidated, holding company and subsidiary levels. Cash flow forecasts at the consolidated and subsidiary levels are provided on a monthly basis, and we use trend and variance analyses to project future cash needs making adjustments to the forecasts when needed.
The table below shows our net cash flows for the periods indicated:
| For the Nine Months Ended September 30, | |||||||||||
| Net cash provided by (used in): | 2025 | 2024 | |||||||||
| Operating activities | $ | 1,162.9 | $ | 1,229.9 | |||||||
| Investing activities | (1,054.0) | (728.8) | |||||||||
| Financing activities | (228.0) | (317.8) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 23.9 | 2.7 | |||||||||
| Net change in cash | $ | (95.2) | $ | 186.0 |
We typically generate operating cash inflows from premiums collected from our insurance products, fees received for services and income received from our investments, while outflows consist of policy acquisition costs, benefits paid and operating expenses. These net cash flows are then invested to support the obligations of our insurance products and required capital supporting these products. Our cash flows from operating activities are affected by the timing of premiums, fees, and investment income received and expenses paid.
Net cash provided by operating activities was $1.16 billion for Nine Months 2025 compared to net cash provided by operating activities of $1.23 billion for Nine Months 2024. The change in net operating cash flows was largely attributable to higher net paid claims, the timing of collections of premiums and fees in our mobile business and the timing of tax payments, as we received a refund during Nine Months 2024. These were partially offset by a decrease in payments for the acquisition of mobile devices during Nine Months 2025 and the timing of accounts payable payments.
Net cash used in investing activities was $1.05 billion for Nine Months 2025 compared to net cash used in investing activities of $728.8 million for Nine Months 2024. The change in net investing cash flows was primarily driven by the increased investment of net cash provided by operating activities and the reinvestment of proceeds from the sale of fixed maturity securities.
Net cash used in financing activities was $228.0 million for Nine Months 2025 compared to net cash used in financing activities of $317.8 million for Nine Months 2024. The change in net financing cash flows was primarily due to the issuance of the 2036 Senior Notes, partially offset by the redemption of the 2026 Senior Notes and higher share repurchases for Nine Months 2025. For additional information please see Note 10 in the Consolidated Financial Statements included elsewhere in this report.
The table below shows our cash outflows for interest and dividends for the periods indicated:
| For the Nine Months Ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Interest paid on debt | $ | 104.0 | $ | 82.7 | |||||||
| Common stock dividends | 124.2 | 114.8 | |||||||||
| Total | $ | 228.2 | $ | 197.5 |
Letters of Credit
In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which we are the reinsurer. These letters of credit are supported by commitments under which we are required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. We had $1.7 million and $1.8 million of letters of credit outstanding as of September 30, 2025 and December 31, 2024, respectively.
Limited Recourse Note
In 2024, we entered into a financing arrangement pursuant to which we are able to issue a $100 million limited recourse note and, in return, obtain a $100 million asset-backed note from a Delaware master trust. As of September 30, 2025, no notes have been issued under this arrangement.
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