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, 2020March 31, 2021
OR 
☐Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from                     to                     
Assurant, Inc.
(Exact name of registrant as specified in its charter)
Delaware001-3197839-1126612
(State or other jurisdiction

of incorporation)
(Commission

File Number)
(I.R.S. Employer

Identification No.)
28 Liberty Street,, 41st Floor
New York,, New York10005
(212) (212) 859-7000
(Address, including zip code, and telephone number, including area code, of Registrant’s Principal Executive Offices)

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.01 Par ValueAIZNew York Stock Exchange
6.50% Series D Mandatory Convertible Preferred Stock, $1.00 Par Value5.25% Subordinated Notes due 2061AIZPAIZNNew 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☐
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 July 31, 2020April 30, 2021 was 59,648,077.
60,566,633.



ASSURANT, INC.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2020MARCH 31, 2021
TABLE OF CONTENTS
 
Item
Number
 
Page
Number
PART I
FINANCIAL INFORMATION
1.
2
3
4
5
6
8
2.
32
3.
51
4.
51
PART II
OTHER INFORMATION
1.
52
1A.
52
2.
52
6.
53
54

1
Item
Number
 
Page
Number
 
PART I
FINANCIAL INFORMATION
 
   
1.
Consolidated Financial Statements (unaudited) of Assurant, Inc.:
 
   
 
Consolidated Balance Sheets (unaudited) as of June 30, 2020 and December 31, 2019
2
   
 
Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2020 and 2019
4
   
 
Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2020 and 2019
5
   
 
Consolidated Statements of Changes in Equity (unaudited) for the three and six months ended June 30, 2020 and 2019
6
   
 
Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2020 and 2019
8
   
 
Notes to Consolidated Financial Statements (unaudited)
10
   
2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
43
   
3.
Quantitative and Qualitative Disclosures About Market Risk
68
   
4.
Controls and Procedures
68
   
 
PART II
OTHER INFORMATION
 
   
1.
Legal Proceedings
69
   
1A.
Risk Factors
69
   
2.
Unregistered Sales of Equity Securities and Use of Proceeds
69
   
6.
Exhibits
70
   
 
Signatures
71




Assurant, Inc.
Consolidated Balance Sheets (unaudited)
March 31, 2021December 31, 2020
 (in millions, except number of 
shares and per share amounts)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (net of allowances for credit losses of $1.2 at March 31, 2021 and December 31, 2020; amortized cost - $6,206.8 and $6,245.8 at March 31, 2021 and December 31, 2020, respectively)$6,575.9 $6,815.5 
Equity securities at fair value293.2 290.2 
Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $1.2 and $1.6 at March 31, 2021 and December 31, 2020, respectively)147.9 138.3 
Short-term investments145.3 292.0 
Other investments (net of allowances for credit losses of $1.4 at March 31, 2021 and December 31, 2020)707.7 686.8 
Total investments7,870.0 8,222.8 
Cash and cash equivalents1,651.3 2,207.6 
Premiums and accounts receivable (net of allowances for credit losses of $12.2 and $13.3 at March 31, 2021 and December 31, 2020, respectively)1,924.2 1,548.9 
Reinsurance recoverables (net of allowances for credit losses of $22.8 and $24.6 at March 31, 2021 and December 31, 2020, respectively)6,528.1 6,605.4 
Accrued investment income73.3 67.0 
Deferred acquisition costs7,649.7 7,388.0 
Property and equipment, net469.1 446.1 
Goodwill2,586.0 2,589.3 
Value of business acquired988.0 1,152.2 
Other intangible assets, net672.7 696.2 
Other assets (net of allowances for credit losses of $1.8 at March 31, 2021 and December 31, 2020)495.4 496.2 
Assets held in separate accounts11.3 11.5 
Assets held for sale (Note 4)13,491.5 13,218.7 
Total assets$44,410.6 $44,649.9 
Liabilities
Future policy benefits and expenses$1,356.5 $1,358.5 
Unearned premiums17,301.0 17,293.1 
Claims and benefits payable1,578.0 1,610.3 
Commissions payable599.0 699.1 
Reinsurance balances payable422.2 359.3 
Funds held under reinsurance359.8 358.6 
Accounts payable and other liabilities2,388.3 2,640.5 
Debt2,203.7 2,252.9 
Liabilities related to separate accounts11.3 11.5 
Liabilities held for sale (Note 4)12,365.2 12,111.3 
Total liabilities38,585.0 38,695.1 
Commitments and contingencies (Note 16)00
Stockholders’ equity
6.50% Series D mandatory convertible preferred stock, par value $1.00 per share, 0 shares and 2,875,000 shares authorized, issued and outstanding at March 31, 2021 and December 31, 2020, respectively (1)0 2.9 
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 62,947,351 and 62,967,808 shares issued and 60,651,262 and 57,967,808 shares outstanding at March 31, 2021 and December 31, 2020, respectively0.7 0.6 
Additional paid-in capital1,804.3 1,956.8 
Retained earnings3,635.5 3,548.7 
Accumulated other comprehensive income504.5 709.8 
Treasury stock, at cost; 2,296,089 and 5,000,000 shares at March 31, 2021 and December 31, 2020, respectively(122.8)(267.4)
Total Assurant, Inc. stockholders’ equity5,822.2 5,951.4 
Non-controlling interests3.4 3.4 
Total equity5,825.6 5,954.8 
Total liabilities and equity$44,410.6 $44,649.9 

(1)Each outstanding share of mandatory convertible preferred stock converted to common stock in March 2021. Refer to Note 13 for further information.


 June 30, 2020 December 31, 2019
 
(in millions, except number of 
shares and per share amounts)
Assets
Investments:   
Fixed maturity securities available for sale, at fair value (amortized cost - $11,050.4 and $11,064.8 at June 30, 2020 and December 31, 2019, respectively)$12,639.6
 $12,322.4
Equity securities at fair value376.3
 388.5
Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $4.1 at June 30, 2020)790.1
 815.0
Short-term investments207.8
 402.5
Other investments (net of allowances for credit losses of $1.4 at June 30, 2020)632.4
 638.9
Total investments14,646.2
 14,567.3
Cash and cash equivalents2,137.5
 1,867.1
Premiums and accounts receivable (net of allowances for credit losses of $16.8 at June 30, 2020)1,475.4
 1,692.8
Reinsurance recoverables (net of allowances for credit losses of $26.8 at June 30, 2020)9,581.9
 9,593.4
Accrued investment income143.0
 131.1
Deferred acquisition costs7,003.2
 6,668.0
Property and equipment, net450.1
 433.7
Goodwill2,441.4
 2,343.4
Value of business acquired1,539.9
 2,004.3
Other intangible assets, net582.1
 540.2
Other assets (net of allowances for credit losses of $1.9 at June 30, 2020)708.1
 590.1
Assets held in separate accounts1,853.6
 1,839.7
Assets of consolidated investment entities (1)1,670.8
 2,020.1
Total assets$44,233.2
 $44,291.2
Liabilities   
Future policy benefits and expenses$9,817.4
 $9,807.3
Unearned premiums16,557.2
 16,603.6
Claims and benefits payable2,669.1
 2,687.7
Commissions payable473.7
 540.5
Reinsurance balances payable364.8
 358.5
Funds held under reinsurance346.8
 319.4
Accounts payable and other liabilities2,417.3
 2,758.5
Debt2,208.0
 2,006.9
Liabilities related to separate accounts1,853.6
 1,839.7
Liabilities of consolidated investment entities (1)1,540.8
 1,687.0
Total liabilities38,248.7
 38,609.1
Commitments and contingencies (Note 20)

 

Stockholders’ equity   
6.50% Series D mandatory convertible preferred stock, par value $1.00 per share, 2,875,000 shares authorized, issued and outstanding at June 30, 2020 and December 31, 2019, respectively2.9
 2.9
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 161,968,591 and 161,607,866 shares issued and 59,571,651 and 59,945,893 shares outstanding at June 30, 2020 and December 31, 2019, respectively1.6
 1.6
Additional paid-in capital4,550.4
 4,537.7
Retained earnings6,194.4
 5,966.4
Accumulated other comprehensive income568.9
 411.5
Treasury stock, at cost; 102,396,940 and 101,661,973 shares at June 30, 2020 and December 31, 2019, respectively(5,350.4) (5,267.3)
Total Assurant, Inc. stockholders’ equity5,967.8
 5,652.8
Non-controlling interests16.7
 29.3
Total equity5,984.5
 5,682.1
Total liabilities and equity$44,233.2
 $44,291.2
(1)The following table presents information on assets and liabilities related to consolidated investment entities as of June 30, 2020 and December 31, 2019.


Assurant, Inc.
Consolidated Balance Sheets (unaudited)

 June 30, 2020 December 31, 2019
 (in millions)
Assets   
Cash and cash equivalents$14.9
 $32.9
Investments, at fair value1,635.5
 1,957.9
Other receivables20.4
 29.3
Total assets$1,670.8
 $2,020.1
Liabilities   
Collateralized loan obligation notes, at fair value1,505.0
 1,603.1
Other liabilities35.8
 83.9
Total liabilities$1,540.8
 $1,687.0



See the accompanying Notes to Consolidated Financial Statements
(unaudited)

2


Assurant, Inc.
Consolidated Statements of Operations (unaudited)
 Three Months Ended March 31,
 20212020
 (in millions, except number of shares and per share amounts)
Revenues
Net earned premiums$2,105.6 $2,065.5 
Fees and other income249.9 383.6 
Net investment income76.3 83.6 
Net realized gains (losses) on investments (including $1.0 and $5.3 of impairment losses for the three months ended March 31, 2021 and 2020, respectively)0.8 (84.0)
Total revenues2,432.6 2,448.7 
Benefits, losses and expenses
Policyholder benefits528.7 535.2 
Amortization of deferred acquisition costs and value of business acquired946.7 895.3 
Underwriting, general and administrative expenses735.7 892.6 
Interest expense28.4 25.5 
Total benefits, losses and expenses2,239.5 2,348.6 
Income from continuing operations before income tax expense (benefit)193.1 100.1 
Income tax expense (benefit)44.6 (48.5)
Net income from continuing operations148.5 148.6 
Net income from discontinued operations (Note 4)14.3 7.2 
Net income162.8 155.8 
Less: Net loss (income) attributable to non-controlling interests0.2 (1.1)
Net income attributable to stockholders163.0 154.7 
Less: Preferred stock dividends(4.7)(4.7)
Net income attributable to common stockholders$158.3 $150.0 
Earnings Per Common Share
Basic
Net income from continuing operations$2.43 $2.36 
Net income from discontinued operations$0.24 $0.12 
Net income attributable to common stockholders$2.67 $2.48 
Diluted
Net income from continuing operations$2.41 $2.32 
Net income from discontinued operations$0.23 $0.11 
Net income attributable to common stockholders$2.64 $2.43 
Share Data
Weighted average common shares outstanding used in basic per common share calculations59,192,880 60,602,911 
Plus: Dilutive securities2,590,512 3,024,015 
Weighted average common shares outstanding used in diluted per common share calculations61,783,392 63,626,926 

 Three Months Ended June 30, Six Months Ended June 30,
 2020 2019 2020 2019
 (in millions, except number of shares and per share amounts)
Revenues       
Net earned premiums$2,036.4
 $2,032.7
 $4,120.2
 $3,937.1
Fees and other income271.5
 336.1
 688.4
 664.4
Net investment income137.2
 154.2
 293.2
 320.5
Net realized gains (losses) on investments (including $(7.8), $(0.6), $(13.1), and $(0.9) of impairment losses for the three and six months ended June 30, 2020 and 2019, respectively)24.1
 17.8
 (71.2) 46.6
Amortization of deferred gains on disposal of businesses2.4
 4.7
 6.6
 12.5
Total revenues2,471.6
 2,545.5
 5,037.2
 4,981.1
Benefits, losses and expenses       
Policyholder benefits592.1
 687.0
 1,199.3
 1,301.7
Amortization of deferred acquisition costs and value of business acquired885.3
 815.8
 1,799.5
 1,593.1
Underwriting, general and administrative expenses736.2
 823.7
 1,644.3
 1,623.6
Iké net losses (Note 5)4.5
 9.2
 5.9
 9.4
Interest expense26.7
 26.5
 52.2
 53.0
Total benefits, losses and expenses2,244.8
 2,362.2
 4,701.2
 4,580.8
Income before provision for income taxes226.8
 183.3
 336.0
 400.3
Provision for income taxes48.4
 40.7
 1.8
 89.1
Net income178.4
 142.6
 334.2
 311.2
Less: Net (income) loss attributable to non-controlling interests(0.3) 1.5
 (1.4) (1.4)
Net income attributable to stockholders178.1
 144.1
 332.8
 309.8
Less: Preferred stock dividends(4.6) (4.6) (9.3) (9.3)
Net income attributable to common stockholders$173.5
 $139.5
 $323.5
 $300.5
        
Earnings Per Common Share       
Basic$2.87
 $2.24
 $5.35
 $4.82
Diluted$2.81
 $2.21
 $5.24
 $4.73
Share Data       
Weighted average common shares outstanding used in basic per common share calculations60,363,577
 62,222,090
 60,483,244
 62,407,429
Plus: Dilutive securities2,983,612
 3,066,357
 2,990,068
 3,153,501
Weighted average common shares used in diluted per common share calculations63,347,189
 65,288,447
 63,473,312
 65,560,930

See the accompanying Notes to Consolidated Financial Statements
(unaudited)

3


Assurant, Inc.
Consolidated Statements of Comprehensive Income (unaudited)
 Three Months Ended March 31,
 20212020
 (in millions)
Net income$162.8 $155.8 
Other comprehensive (loss) income:
Change in unrealized gains on investments, net of taxes of $58.6 and $85.1 for the three months ended March 31, 2021 and 2020, respectively(209.5)(302.1)
Change in unrealized gains on derivative transactions, net of taxes of $0.2 for each of the three months ended March 31, 2021 and 2020(0.6)(0.6)
Change in non-credit related impairment losses, net of taxes of $0.2 and $0.7 for the three months ended March 31, 2021 and 2020, respectively(0.8)(2.7)
Change in foreign currency translation, net of taxes of $2.1 and $9.7 for the three months ended March 31, 2021 and 2020, respectively7.2 (66.7)
Change in pension and postretirement unrecognized net periodic benefit cost, net of taxes of $0.5 and $(13.0) or the three months ended March 31, 2021 and 2020, respectively (1)(1.6)49.0 
Total other comprehensive loss(205.3)(323.1)
Total comprehensive loss(42.5)(167.3)
Less: Comprehensive loss (income) attributable to non-controlling interests0.2 (1.1)
Total comprehensive loss attributable to stockholders$(42.3)$(168.4)

(1)Change in three months ended March 31, 2020 includes the prior service credit resulting from the February 2020 amendment of the Retirement Health Benefits plan. Refer to Note 15 for further information.
 Three Months Ended June 30, Six Months Ended June 30,
 2020 2019 2020 2019
 (in millions)
Net income$178.4
 $142.6
 $334.2
 $311.2
Other comprehensive income (loss):       
Change in unrealized gains on investments, net of taxes of $(126.5), $(60.0), $(41.4) and $(129.0) for the three and six months ended June 30, 2020 and 2019, respectively434.7
 228.5
 132.6
 477.4
Change in unrealized gains on derivative transactions, net of taxes of $0.2, $0.1, $0.3 and $0.3 for the three and six months ended June 30, 2020 and 2019, respectively(0.6) (2.9) (1.2) (3.2)
Change in non-credit related impairment losses, net of taxes of $(0.4), $(0.2), $0.3 and $(0.1) for the three and six months ended June 30, 2020 and 2019, respectively1.5
 0.7
 (1.2) 0.5
Change in foreign currency translation, net of taxes of ($4.0), $(0.8), $5.7 and $(1.4) for the three and six months ended June 30, 2020 and 2019, respectively46.6
 (1.2) (20.1) 9.0
Change in pension and postretirement unrecognized net periodic benefit cost, net of taxes of $0.5, $(0.1), $(12.6) and $(0.1) for the three and six months ended June 30, 2020 and 2019, respectively (1)(1.7) 0.2
 47.3
 0.4
Total other comprehensive income480.5
 225.3
 157.4
 484.1
Total comprehensive income658.9
 367.9
 491.6
 795.3
Less: Comprehensive (income) loss attributable to non-controlling interests(0.3) 1.5
 (1.4) (1.4)
Total comprehensive income attributable to stockholders$658.6
 $369.4
 $490.2
 $793.9

(1)Change in six months ended June 30, 2020 includes the prior service credit resulting from the February 2020 amendment of the Retirement Health Benefits plan. Refer to Note 19 for further information.

See the accompanying Notes to Consolidated Financial Statements
(unaudited)

4


Assurant, Inc.
Consolidated Statements of Changes in Equity (unaudited)

Three Months Ended March 31, 2021
Preferred StockCommon StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income		Treasury
Stock		Non-controlling InterestsTotal
 (in millions)
Balance at December 31, 2020$2.9 $0.6 $1,956.8 $3,548.7 $709.8 $(267.4)$3.4 $5,954.8 
Stock plan issuances— — 5.4 — — — — 5.4 
Stock plan compensation expense— — 13.2 — — — — 13.2 
Common stock dividends ($0.66 per share)— — — (38.2)— — — (38.2)
Acquisition of common stock— — (29.3)(33.3)— 0 — (62.6)
Net income (loss)— — — 163.0 — — (0.2)162.8 
Preferred stock conversion(2.9)0.1 (141.8)— — 144.6 — — 
Preferred stock dividends ($1.63 per share)— — — (4.7)— — — (4.7)
Change in equity of non-controlling interests— — — 0 — — 0.2 0.2 
Other comprehensive loss— — — — (205.3)— — (205.3)
Balance at March 31, 2021$0 $0.7 $1,804.3 $3,635.5 $504.5 $(122.8)$3.4 $5,825.6 
Three Months Ended March 31, 2020
Preferred StockCommon StockAdditional
Paid-in
Capital		Retained
Earnings		Accumulated
Other
Comprehensive
Income		Treasury
Stock		Non-controlling InterestsTotal
 (in millions)
Balance at December 31, 2019$2.9 $1.6 $4,537.7 $5,966.4 $411.5 $(5,267.3)$29.3 $5,682.1 
Cumulative effect of change in accounting principles, net of taxes (1)— — — (20.4)— — — (20.4)
Stock plan issuances— — 3.9 — — — — 3.9 
Stock plan compensation expense— — 11.5 — — — — 11.5 
Common stock dividends ($0.63 per share)— — — (38.0)— — — (38.0)
Acquisition of common stock— — (12.5)— — (57.3)— (69.8)
Net income— — — 154.7 — — 1.1 155.8 
Preferred stock dividends ($1.63 per share)— — — (4.7)— — 0 (4.7)
Change in equity of non-controlling interests— — — 3.1 — — (14.2)(11.1)
Other comprehensive loss— — — — (323.1)— — (323.1)
Balance at March 31, 2020$2.9 $1.6 $4,540.6 $6,061.1 $88.4 $(5,324.6)$16.2 $5,386.2 
 Three Months Ended June 30, 2020
 Preferred Stock Common Stock 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income
 
Treasury
Stock
 Non-controlling Interests Total
 (in millions)
Balance at March 31, 2020$2.9
 $1.6
 $4,540.6
 $6,061.1
 $88.4
 $(5,324.6) $16.2
 $5,386.2
Stock plan issuances—
 —
 —
 —
 —
 —
 —
 —
Stock plan compensation expense—
 —
 14.9
 —
 —
 —
 —
 14.9
Common stock dividends ($0.63 per share)—
 —
 —
 (39.6) —
 —
 —
 (39.6)
Acquisition of common stock—
 —
 (5.1) —
 —
 (25.8) —
 (30.9)
Net income—
 —
 —
 178.1
 —
 —
 0.3
 178.4
Preferred stock dividends ($1.63 per share)—
 —
 —
 (4.6) —
 —
 —
 (4.6)
Change in equity of non-controlling interests—
 —
 —
 (0.6) —
 —
 0.2
 (0.4)
Other comprehensive income—
 —
 —
 —
 480.5
 —
 —
 480.5
Balance at June 30, 2020$2.9
 $1.6
 $4,550.4
 $6,194.4
 $568.9
 $(5,350.4) $16.7
 $5,984.5

 Three Months Ended June 30, 2019
 Preferred Stock Common Stock 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income
 
Treasury
Stock
 Non-controlling Interests Total
 (in millions)
Balance at March 31, 2019$2.9
 $1.6
 $4,496.0
 $5,879.7
 $103.4
 $(5,043.0) $31.1
 $5,471.7
Stock plan issuances—
 —
 —
 —
 —
 —
 —
 —
Stock plan compensation expense—
 —
 14.2
 —
 —
 —
 —
 14.2
Common stock dividends ($0.60 per share)—
 —
 —
 (38.3) —
 —
 —
 (38.3)
Acquisition of common stock—
 —
 (1.0) —
 —
 (50.1) —
 (51.1)
Net income—
 —
 —
 144.1
 —
 —
 (1.5) 142.6
Preferred stock dividends ($1.63 per share)—
 —
 —
 (4.6) —
 —
 —
 (4.6)
Change in equity of non-controlling interests—
 —
 —
 —
 —
 —
 0.5
 0.5
Other comprehensive income—
 —
 —
 —
 225.3
 —
 —
 225.3
Balance at June 30, 2019$2.9
 $1.6
 $4,509.2
 $5,980.9
 $328.7
 $(5,093.1) $30.1
 $5,760.3



Assurant, Inc.
Consolidated Statements(1)Amount relates to the adoption of Changes in Equity (unaudited)the accounting standard for accounting for expected credit losses for assets held at amortized cost, which established allowances for such expected credit losses as of January 1, 2020.

 Six Months Ended June 30, 2020
 Preferred Stock Common Stock 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive Income
 
Treasury
Stock
 Non-controlling Interests Total
 (in millions)
Balance at December 31, 2019$2.9
 $1.6
 $4,537.7
 $5,966.4
 $411.5
 $(5,267.3) $29.3
 $5,682.1
Cumulative effect of change in accounting principles, net of taxes (1)—
 —
 —
 (20.4) —
 —
 —
 (20.4)
Stock plan issuances—
 —
 3.9
 —
 —
 —
 —
 3.9
Stock plan compensation expense—
 —
 26.4
 —
 —
 —
 —
 26.4
Common stock dividends ($1.26 per share)—
 —
 —
 (77.6) —
 —
 —
 (77.6)
Acquisition of common stock—
 —
 (17.6) —
 —
 (83.1) —
 (100.7)
Net income—
 —
 —
 332.8
 —
 —
 1.4
 334.2
Preferred stock dividends ($3.25 per share)—
 —
 —
 (9.3) —
 —
 —
 (9.3)
Change in equity of non-controlling interests—
 —
 —
 2.5
 —
 —
 (14.0) (11.5)
Other comprehensive income—
 —
 —
 —
 157.4
 —
 —
 157.4
Balance at June 30, 2020$2.9
 $1.6
 $4,550.4
 $6,194.4
 $568.9
 $(5,350.4) $16.7
 $5,984.5


 Six Months Ended June 30, 2019
 Preferred Stock Common Stock 
Additional
Paid-in
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Treasury
Stock
 Non-controlling Interests Total
 (in millions)
Balance at December 31, 2018$2.9
 $1.6
 $4,495.6
 $5,759.7
 $(155.4) $(4,992.4) $21.9
 $5,133.9
Stock plan issuances—
 —
 3.5
 —
 —
 —
 —
 3.5
Stock plan compensation expense—
 —
 25.7
 —
 —
 —
 —
 25.7
Common stock dividends ($1.20 per share)—
 —
 —
 (75.7) —
 —
 —
 (75.7)
Acquisition of common stock—
 —
 (15.6) —
 —
 (100.7) —
 (116.3)
Net income—
 —
 —
 309.8
 —
 —
 1.4
 311.2
Preferred stock dividends ($3.25 per share)—
 —
 —
 (9.3) —
 —
 —
 (9.3)
Change in equity of non-controlling interests—
 —
 —
 (3.6) —
 —
 6.8
 3.2
Other comprehensive income—
 —
 —
 —
 484.1
 —
 —
 484.1
Balance at June 30, 2019$2.9
 $1.6
 $4,509.2
 $5,980.9
 $328.7
 $(5,093.1) $30.1
 $5,760.3

(1)Amount relates to the adoption of a new accounting standard for accounting for expected credit losses for assets held at amortized cost, which established allowances for such expected credit losses as of January 1, 2020. Refer to Notes 3 and 6 for additional information.


See the accompanying Notes to Consolidated Financial Statements
(unaudited)

5


Assurant, Inc.
Consolidated Statements of Cash Flows (unaudited)

Three Months Ended March 31,
 20212020
(in millions)
Operating activities
Net income attributable to stockholders$163.0 $154.7 
Adjustments to reconcile net income to net cash provided by operating activities:
Noncash revenues, expenses, gains and losses included in net income from continuing operations:
Deferred tax expense19.2 120.0 
Depreciation and amortization41.4 32.5 
Net realized (gains) losses on investments, including impairment losses(0.8)84.0 
Stock based compensation expense13.2 11.5 
Iké related charges, net of derivative gains0 1.4 
Changes in operating assets and liabilities:
Change in insurance policy reserves and expenses4.9 24.5 
Change in premiums and accounts receivable(385.0)47.6 
Change in commissions payable(142.6)(108.6)
Change in reinsurance recoverable69.9 (9.5)
Change in reinsurance balance payable64.0 (7.7)
Change in funds withheld under reinsurance0.6 34.5 
Change in deferred acquisition costs and value of business acquired(111.4)(95.2)
Change in taxes payable (receivable)6.5 (190.4)
Change in other assets and other liabilities(187.9)(289.4)
Other(9.0)22.6 
Net cash provided by operating activities - discontinued operations35.3 43.8 
Net cash used in operating activities(418.7)(123.7)
Investing activities
Sales of:
Fixed maturity securities available for sale215.5 199.4 
Equity securities3.4 1.7 
Other invested assets25.8 30.9 
Maturities, calls, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale239.0 160.7 
Commercial mortgage loans on real estate4.2 3.1 
Purchases of:
Fixed maturity securities available for sale(390.6)(297.1)
Equity securities(10.3)(12.2)
Commercial mortgage loans on real estate(10.0)0 
Other invested assets(12.2)(5.7)
Property and equipment and other(39.6)(20.3)
Subsidiaries, net of cash transferred(4.1)0 
Consolidated investment entities (1):
Purchases of investments0 (258.7)
Sale of investments0 310.3 
Change in short-term investments41.6 125.3 
Other0.5 0.3 
Net cash used in investing activities - discontinued operations(48.7)(55.8)
6
 Six Months Ended June 30,
 2020 2019
 (in millions)
Operating activities   
Net income attributable to stockholders$332.8
 $309.8
Adjustments to reconcile net income to net cash provided by operating activities:   
Noncash revenues, expenses, gains and losses included in income:   
Deferred tax expense162.2
 53.6
Amortization of deferred gains on disposal of businesses(6.6) (12.5)
Depreciation and amortization65.0
 60.1
Net realized losses (gains) on investments, including impairment losses71.2
 (46.6)
Stock based compensation expense26.4
 25.7
Other intangible asset impairment—
 14.6
Iké related charges, net of derivative gains (1)1.7
 9.4
Changes in operating assets and liabilities:   
Change in insurance policy reserves and expenses139.9
 501.0
Change in premiums and accounts receivable202.7
 (99.4)
Change in commissions payable(55.8) 6.9
Change in reinsurance recoverable38.5
 85.1
Change in reinsurance balance payable13.2
 (12.7)
Change in funds withheld under reinsurance29.8
 34.4
Change in deferred acquisition costs and value of business acquired(145.2) (438.6)
Change in taxes (receivable) payable(214.2) 30.1
Change in other assets and other liabilities(369.3) 190.7
Other(0.1) 14.1
Net cash provided by operating activities292.2
 725.7
Investing activities   
Sales of:   
Fixed maturity securities available for sale403.4
 1,262.3
Equity securities11.2
 52.5
Other invested assets35.8
 22.1
Iké foreign currency hedge (1)22.0
 —
Maturities, calls, prepayments, and scheduled redemption of:   
Fixed maturity securities available for sale453.2
 295.9
Commercial mortgage loans on real estate20.6
 32.2
Purchases of:   
Fixed maturity securities available for sale(995.6) (1,731.7)
Equity securities(26.9) (43.8)
Commercial mortgage loans on real estate(3.0) (52.3)
Other invested assets (2)(46.7) (24.9)
Property and equipment and other(46.2) (57.8)
Subsidiaries, net of cash transferred (3)(135.8) —
Net cash outflow related to sale of interests in Iké and termination of put/call obligations (1)(73.3) —
Consolidated investment entities (4):   
Purchases of investments(312.5) (874.0)
Sale of investments502.7
 488.5
Change in short-term investments159.0
 18.9



Assurant, Inc.
Consolidated Statements of Cash Flows (unaudited)
Net cash provided by investing activities14.5 181.9 
Financing activities
Repayment of debt(50.0)0 
Repayment of debt for consolidated investment entities (1)0 (0.7)
Borrowings under unsecured revolving credit facility0 200.0 
Acquisition of common stock(42.0)(56.6)
Common stock dividends paid(38.2)(38.0)
Preferred stock dividends paid(4.7)(4.7)
Employee stock purchases and withholdings(18.1)(8.6)
Net cash provided by (used in) financing activities - discontinued operations0 0 
Net cash (used in) provided by financing activities(153.0)91.4 
Effect of exchange rate changes on cash and cash equivalents - continuing operations0 (16.4)
Effect of exchange rate changes on cash and cash equivalents - discontinued operations0.2 (0.4)
Effect of exchange rate changes on cash and cash equivalents0.2 (16.8)
Change in cash and cash equivalents(557.0)132.8 
Cash and cash equivalents at beginning of period2,228.6 1,867.1 
Cash and cash equivalents at end of period1,671.6 1,999.9 
Less: Cash and cash equivalents of discontinued operations at end of period20.3 3.8 
Cash and cash equivalents of continuing operations at end of period$1,651.3 $1,996.1 

(1)Relates to cash flows from the Company’s variable interest entities.
Other(0.1) 2.5
Net cash used in investing activities(32.2) (609.6)
Financing activities   
Issuance of collateralized loan obligation notes (4)—
 416.4
Issuance of debt for consolidated investment entities (4)—
 189.1
Repayment of debt for consolidated investment entities (4)(1.2) (318.1)
Borrowings under secured revolving credit facility200.0
 —
Acquisition of common stock(86.2) (98.5)
Common stock dividends paid(77.6) (75.7)
Preferred stock dividends paid(9.3) (9.3)
Employee stock purchases and withholdings(13.7) 14.7
Net cash provided by financing activities12.0
 118.6
Effect of exchange rate changes on cash and cash equivalents(1.6) 1.7
Change in cash and cash equivalents270.4
 236.4
Cash and cash equivalents at beginning of period1,867.1
 1,254.0
Cash and cash equivalents at end of period$2,137.5
 $1,490.4

(1)Relates to Iké disposition and related financing. Refer to Note 5 for additional information.
(2)Includes loan to Iké Grupo. Refer to Note 5 for additional information.
(3)Consists of $175.4 million in cash consideration for the acquisition of American Financial & Automotive Services, Inc., net of $39.6 million of cash acquired. Refer to Note 4 for additional information.
(4)Relates to cash flows from our variable interest entities. Refer to Note 11 for additional information.




See the accompanying Notes to Consolidated Financial Statements (unaudited)

7




Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)





1. Nature of Operations
Assurant, Inc. (the “Company”) is a global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases. The Company partners with leading brands to develop innovative products and services and to deliver enhanced customer experience. The Company operates in North America, Latin America, Europe and Asia Pacific through 32 operating segments: Global Lifestyle Global Housing and Global Preneed.Housing. Through its Global Lifestyle segment, the Company provides mobile device solutions and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance products (referred to as “Global Financial Services and Other”). Through its Global Housing segment, the Company provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”). Through itsThe businesses previously reported as the Global Preneed segment, through which the Company provides pre-funded funeral insurance, final need insurance and related services.services, as well as certain businesses previously disposed of through reinsurance, which were previously reported in the Corporate and Other segment, have been classified as held for sale. Refer to Note 4 for additional information on the pending sale.
The Company’s common stock is traded on the New York Stock Exchange under the symbol “AIZ”.

2. Basis of Presentation
The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements.
The interim financial data as of June 30, 2020March 31, 2021 and for the three and six months ended June 30,March 31, 2021 and 2020 and 2019 is unaudited. In the opinion of management, the interim data includes all adjustments necessary for a fair statement of the results for the interim periods. The unaudited interim Consolidated Financial Statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current year presentation.presentation, including the impacts of held for sale and discontinued operations as further summarized in Note 4. 
Operating results for the three and six months ended June 30, 2020March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020.2021. 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, 2019.2020.

3. Recent Accounting Pronouncements
Adopted
Measurement of credit losses on financial instruments held at amortized cost (“CECL”)Simplifying the Accounting for Income Taxes: In June 2016,December 2019, the Financial Accounting Standards Board (“FASB”) issued amendednew guidance on reporting credit lossesto simplify the accounting for assets held at amortized costincome taxes by removing certain exceptions to the general principles and available for sale debt securities (codifiedalso simplify areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard was adopted by the FASB Accounting Standards Codification Topic 326 (“ASC 326”)). For assets held at amortized cost, the amended guidance eliminates the probable recognition threshold and instead requires an entity to reflect the current estimate of all expected credit losses. For available for sale debt securities, credit losses are measured in a manner similar to accounting requirements in effect prior to adoption; however, the amended guidance requires that credit-related impairment losses be presented as an allowance rather than as a permanent impairment. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, premium receivables, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company adopted this standard as ofbeginning on January 1, 2020. Refer to Note 6 for additional information.
Customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract: In August 2018, the FASB issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




internal-use software. For these arrangements, the guidance also limits the period to expense capitalized implementation costs based on the term of the hosting agreement, including the noncancelable period of the arrangement plus periods covered by options to extend the arrangement that are reasonably certain of exercise. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments. The Company adopted the guidance on its effective date of January 1, 20202021 with no material impact on its financial position andor results of operations.
Not Yet Adopted
Targeted improvements to the accounting for long-duration contracts: In August 2018, the FASB issued guidance that provides targeted improvements to the accounting for long-duration contracts. The guidance includes the following primary changes: assumptions supporting benefit reserves will no longer be locked-in but must be updated at least annually with the impact of changes to the liability reflected in earnings (except for discount rates); the discount rate assumptions will be based on the upper-medium grade (low credit risk) fixed-income instrument yield instead of the earnings rate of invested assets; the
8
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)



discount rate must be evaluated at each reporting date and the impact of changes to the liability estimate as a result of updating the discount rate assumption is required to be recognized in other comprehensive income; the provision for adverse deviation is eliminated; and premium deficiency testing is eliminated. Other noteworthy changes include the following: differing models for amortizing deferred acquisition costs will become uniform for all long-duration contracts based on a constant rate over the expected term of the related in-force contracts; all market risk benefits associated with deposit contracts must be reported at fair value with changes reflected in income except for changes related to credit risk which will be recognized in other comprehensive income; and disclosures will be expanded to include disaggregated roll forwards of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions and methods used in measurement.
The guidance will beis effective for the Companyfiscal years beginning January 1,after December 15, 2022, includingand interim periods within that year.those fiscal years. Early adoption is permitted. Generally, the amendments are applied retrospectively as of the beginning of the earliest period presented with two transition options available for changing the assumptions. In July 2020, the FASB issued a proposed accounting standards update that, if adopted, would extend the effective date of this guidance for the Company to January 1, 2023 (with early adoption permitted) and the application transition date would be January 1, 2022.
This guidance will apply to the Company’s preneed life insurance policies, as well as its annuity and universal life products (which are no longer offered and are in run-off). The Company is evaluating the requirements of this guidance and the potential impact on the Company’s financial position and results of operations.
Simplifying the Accounting for Income Taxes: In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard will be effective for the Company beginning on January 1, 2021, including interim periods within that year. Early adoption is permitted, including adoption in any interim period. The Company is evaluating the impact of adopting this new accounting guidance on the consolidated financial statements.
Facilitation of the Effects of Reference Rate Reform on Financial Reporting: In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.
The relief is applicable only to legacy contracts if the amendments made to the agreements are solely for reference rate reform activities. The provisions must be applied consistently for all relevant transactions other than derivatives, which may be applied at a hedging relationship level. The guidance is effective upon issuance. The guidance on contract modifications is applied prospectively from any date beginning March 12, 2020. Unlike other topics, the provisions of this update are only available until December 31, 2022, when the reference rate replacement activity is expected to have been completed.
As certain published LIBOR isperiods are expected to be discontinued after 2021, the Company is evaluating the provisions of this new accounting guidance and the impact to debt, investments and derivatives that have references to LIBOR and the subsequent transition to alternative reference rates. 
Improvements to Convertible Instruments and Contracts in an Entity’s Own Equity: In August 2020, the FASB issued guidance that simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The guidance removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more contracts in an entity’s own equity to qualify for it. The guidance also simplifies the diluted earnings per common share (“EPS”) calculation in the areas of convertible instruments and instruments that qualify for the derivatives scope exception for contracts in an entity’s own equity to address accounting for the guidance changes to the classification, recognition and measurement.
This guidance will be effective for the Company beginning January 1, 2022. Early adoption is permitted. The Company is evaluating the requirements of this guidance and the potential impact on its financial position and results of operations.

4. Acquisitions
American Financial & Automotive Services
On May 1, 2020, the Company acquired American Financial & Automotive Services, Inc. (“AFAS”), a provider of auto financeBusiness Held for Sale and insurance products and services, including vehicle service contracts, guaranteed asset protection insurance and other ancillary products sold directly through a network of nearly 600 franchised dealership clients across 40 states. The total consideration was $176.9 million, comprised of a base purchase price of $157.5 million, contingent consideration of $1.5 million and other purchase price adjustments of $17.9 million, including excess cash in the business. The transaction resulted in provisional estimates of $2.9 million in net liabilities, $104.0 million of goodwill and $75.8 million of other intangible assets, which are primarily dealer relationships amortizable over 15 years.

5. Sale of Investment in IkéDiscontinued Operations
In 2014, the Company made an approximately 40% investment in Iké Grupo, Iké Asistencia and certain of their affiliates (collectively, “Iké”), a services assistance business, for which the Company paid approximately $110.0 million. At the same time, the Company also entered into a shareholders’ agreement that provided the right to acquire the remainder of Iké from the majority shareholders and the majority shareholders the right to put their interests in Iké to the Company (together, the “put/call”) in mid-2019 at a predetermined price. During 2019,March 2021, the Company entered into a cooperation agreement with the majority shareholders of Iké to extend the put/call. In January 2020, in lieu of exercising the put/call, the Company entered into a formaldefinitive agreement to sell its interests in Iké.
In May 2020, the Company completedlegal entities which comprise the salebusinesses previously reported as the Global Preneed segment and certain businesses previously disposed of its interests in Iké and terminated its put/call obligations recognizing a net loss on sale of $3.9 million pre-tax and $2.9 million after-tax. Prior to the sale, the Company recorded aggregate impairment losses and put/call valuation losses of $22.3 million for the six months ended June 30, 2020, compared to $9.4 million for the six months ended June 30, 2019. In connection with the anticipated sale, the Company entered into a financial derivative in January 2020 that provided an economic hedge against declinesthrough reinsurance, which were previously reported in the Mexican Peso relativeCorporate and Other segment (collectively, the “disposal business”) to the U.S. Dollar since theCUNA Mutual Group (“CUNA”) for total cash consideration of $1.25 billion, subject to certain purchase price wasadjustments at closing. The transaction is expected to be paid in Mexican Pesos. The Company settled its position uponclose by the sale, resulting in a cash inflow of $22.0 million, and net realized (losses) gains on the derivative of $(0.6) million and $20.3 million for the three and six months ended June 30, 2020, respectively.
In total, the Company recorded net pre-tax charges of $4.5 million and $9.2 million for the three months ended June 30, 2020 and 2019, respectively, and $5.9 million and $9.4 million for the six months ended June 30, 2020 and 2019, respectively, presented as Iké net losses in the consolidated statements of operations. For the six months ended June 30, 2020, total impairment and put/call losses resulted in a tax benefit of $6.7 million; however, this was fully offset by a valuation allowance as the realizabilityend of the tax lossesthird quarter of 2021, subject to regulatory approvals and other customary closing conditions.
The estimated carrying value of the disposal business is subject to adjustment in future quarters until closing, and may be influenced by various factors including the related tax jurisdiction is unlikely. There was tax expensefollowing:
•The performance of $4.3 million on the income arising ondisposal business, including the financial derivative, as such contract was originated in the U.S. tax jurisdiction. As such, after-tax chargesimpact of $3.5 milliondiscount, interest, mortality and $6.4 million were recorded for the three months ended June 30, 2020reinsurance rates; and 2019, respectively, and $9.3 million and $6.6 million were recorded for the six months ended June 30, 2020 and 2019, respectively.
In connection with the sale, the Company provided financing to Iké Grupo in an aggregate principal amount of $34.0 million (the “Iké Loan”). The Iké Loan matures in May 2025, bears floating interest at a rate equal to three-month LIBOR plus 4.25% per annum payable quarterly and provides for quarterly principal amortization payments through the maturity date. The
9
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




Iké Loan is classified in other investments•Changes in the consolidated balance sheets and resultant interest income will be reflectedterms of the agreement with CUNA, including as a componentresult of net investment income in the consolidated statement of operations.

6. Allowance for Credit Lossesany subsequent negotiations, any necessary changes to obtain regulatory approval or any changes due to unanticipated developments.
The Company adopted ASC 326 usingreports a modified retrospective methodbusiness as held for allsale when management has received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the ensuing year and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less costs to sell, which is required to be remeasured each reporting period. If the carrying amount of the business exceeds its estimated fair value, which is based on the estimated sales price of the transaction, less costs to sell, a loss is recognized. Depreciation is not recorded on assets of a business classified as held for sale.
The Company reports the results of operations of a business as discontinued operations if (i) the business is classified as held for sale; (ii) the business represents a strategic shift that will have a major impact on the Company’s operations and financial assets measured at amortized cost. Results forresults; (iii) the reporting periods beginning January 1, 2020operations and cash flows of the business have been or will be eliminated from the ongoing operations of the Company as a result of the disposal transaction and (iv) the Company will not have any significant continuing involvement in the operations of the business after are presented under ASC 326 while prior period amountsthe disposal transaction. The results of discontinued operations are reported in accordance with previous applicable GAAP. The Company recorded a decrease of $20.4 million to retained earnings, net of tax, as of January 1, 2020 for the cumulative impact of adoption.
The following table illustrates the impact of adoption:
 As of January 1, 2020
 Prior to adoption As reported on adoption Impact of adoption
Financial assets, at amortized cost:     
Reinsurance recoverables$9,593.4
 $9,570.9
 $(22.5)
Premiums and accounts receivable, net1,692.8
 1,691.0
 (1.8)
Commercial mortgage loans on real estate815.0
 813.4
 (1.6)
Total$12,101.2
 $12,075.3
 (25.9)
Tax effect    5.5
Cumulative effect of adoption    $(20.4)

The total allowance for credit losses for the financial assets was $51.0 million, $46.2 million and $20.3 million as of June 30, 2020, January 1, 2020 (date of adoption) and December 31, 2019, respectively.
For the six months ended June 30, 2020, the net increase in the allowance for credit losses that reduced pre-tax income was $7.7 million, consisting of increases in the allowance for credit losses of $11.6 million, partially offset by recoveries of $3.9 million, principally related to account write-downs established prior to implementation of the new standard. The net increase is classifiedfrom discontinued operations in the consolidated statements of operations for all periods presented, commencing in the period in which the business is either disposed of or is classified as follows: $4.4 million is included in underwriting, generalheld for sale, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less costs to sell. Assets and administrative expenses and $3.3 million included in net realized losses on investments, comprised of $1.9 millionliabilities related to commercial mortgage loans on real estatea business classified as held for sale which also meets the criteria for discontinued operations are segregated in the consolidated balance sheets for the current and $1.4 million related to the Iké Loan (as referenced in Note 5).
For the six months ended June 30, 2020, other net increases to the allowance for credit losses that did not impact income were $23.0 million, including the cumulative effect of adoption of $25.9 million, financial asset write-offs of $2.8 million and foreign currency translation adjustments.
Reinsurance Recoverables
As part of the Company’s overall risk and capacity management strategy, reinsurance is used to mitigate certain risks underwritten by various business segments. The Company is exposed to the credit risk of reinsurers, as the Company remains liable to insureds regardless of whether related reinsurance recoverables are collected. As of June 30, 2020 and December 31, 2019, reinsurance recoverables totaled $9.58 billion and $9.59 billion, respectively, the majority of which are protected from credit risk by various types of collateral or other risk mitigation mechanisms, such as trusts, letters of credit or by withholding the assets in a modified coinsurance or funds-withheld arrangement.
Methodology:prior periods presented.
The Company useshas determined that the disposal business meets the criteria to be classified as held for sale and that the sale represents a probability of default and loss given default methodology in estimating the allowance, whereby the credit ratings of reinsurers are used in determining the probability of default. The allowance is established for reinsurance recoverables on paid and unpaid future policy benefits and claims and benefits. Prior to applying default factors, the net exposure to credit risk is reduced for any collateral for which the right of offset exists, such as funds withheld, assets held in trust and letters of credit, which are part of the reinsurance arrangements, with adjustments to include consideration of credit exposure on the collateral. The methodology used by the Company incorporates historical default factors for each reinsurer based on their credit rating using comparably rated bonds as published bystrategic shift that will have a major ratings service. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing and other relevant factors.
The Company utilizes external credit ratings published by S&P Global Ratings, a division of S&P Global Inc., at the balance sheet date when determining the allowance. Where rates are not available, the Company assigns default credit ratings based on if the reinsurer is authorized or unauthorized. Of the total recoverables subject to the allowance, 71% were rated A- or better, 24% were rated BBB or BB, and 5% were not rated basedimpact on the Company’s analysisoperations and assigned ratings.
The following table presentsfinancial results. Accordingly, the changesresults of operations of the disposal business are presented as net income from discontinued operations in the CECL allowanceconsolidated statements of operations and segregated in the consolidated statement of cash flows for reinsurance recoverables by portfolio segmentall periods presented, and the assets and liabilities for the six months ended June 30, 2020.disposal business have been classified as held for sale and segregated for all periods presented in the consolidated balance sheets.
10
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




 Global Lifestyle Global Housing Global Preneed Corporate and Other Total
Balance, December 31, 2019$2.5
 $0.3
 $—
 $—
 $2.8
Cumulative effect of adoption3.9
 0.7
 0.2
 17.7
 22.5
Incremental allowance0.6
 0.2
 —
 3.2
 4.0
Recoveries(2.5) —
 —
 —
 (2.5)
Balance, June 30, 2020$4.5
 $1.2
 $0.2
 $20.9
 $26.8

For the six months ended June 30, 2020, the incremental allowance of $4.0 million was principally due to the reduction of anticipated recoveries upon default following the recent economic downturn related to COVID-19. When determining the allowance at June 30, 2020, the Company did not increase default probabilities by reinsurer since there had been no credit rating downgrades or other negative credit indications of the Company’s reinsurers. The allowance may be increased and income reduced in future periods if there are future ratings downgrades or other measurable information supporting an increase in reinsurer default probabilities, including, but not limited to, collateral reductions.
Premium and Accounts Receivables
The Company is exposed to credit risk from premiums and other accounts receivables. For premiums receivable, the exposure to loss upon a default is often mitigated by the ability to terminate the policy on default and offset the corresponding unearned premium liability. The Company has other mitigating offsets from amounts payable on commissions and profit share arrangements when the counterparty to the receivable is a sponsor/agent of the Company’s insurance product.
Methodology:
For receivables due directly from the insured or consumer, the allowance is generally calculated by aging receivable balances and applying default factors based on the Company’s historical collection data. For receivables due from product sponsors or agents, receivable balances are generally segregated by the sponsor or agent and an appropriate default factor determined based on creditworthiness, billing terms and aging of balances. The financial exposure of a credit loss is determined net of offsets (such as related unearned premium reserves for consumer receivables and receivables net of commissions payable, profit share liabilities and captive reinsurance for balances due from sponsors/agents) prior to applying a default factor.
The following table presents the changesmajor classes of assets and liabilities held for sale included in the allowance for credit losses by portfolio segment for premium and account receivables for the six months ended June 30, 2020.consolidated balance sheets.
March 31, 2021December 31, 2020
Assets
Investments:
Fixed maturity securities available for sale, at fair value$6,325.0 $6,633.5 
Equity securities at fair value111.0 113.9 
Commercial mortgage loans on real estate, at amortized cost606.1 616.0 
Short-term investments142.5 41.2 
Other investments15.1 52.0 
Total investments7,199.7 7,456.6 
Cash and cash equivalents20.3 21.0 
Premiums and accounts receivable7.3 7.5 
Reinsurance recoverables3,244.0 3,234.5 
Accrued investment income66.5 62.7 
Deferred acquisition costs651.0 185.5 
Property and equipment, net47.2 47.2 
Value of business acquired4.1 4.3 
Other assets21.3 22.6 
Assets held in separate accounts2,230.1 2,176.8 
Total assets held for sale$13,491.5 $13,218.7 
Liabilities
Future policy benefits and expenses$8,806.0 $8,703.5 
Unearned premiums102.1 14.9 
Claims and benefits payable1,019.0 1,049.2 
Commissions payable10.3 9.4 
Reinsurance balances payable3.5 3.1 
Accounts payable and other liabilities194.2 154.4 
Liabilities related to separate accounts2,230.1 2,176.8 
Total liabilities held for sale$12,365.2 $12,111.3 
 Global Lifestyle Global Housing Global Preneed Corporate and Other Total
Balance, December 31, 2019$14.2
 $0.2
 $0.5
 $0.4
 $15.3
Cumulative effect of adoption1.3
 0.5
 —
 —
 1.8
Acquired allowance as of acquisition date0.4
 —
 —
 —
 0.4
Incremental allowance3.1
 0.7
 —
 0.2
 4.0
Recoveries(1.4) —
 —
 —
 (1.4)
Write-offs(2.8) —
 —
 —
 (2.8)
Foreign currency translation(0.5) —
 —
 —
 (0.5)
Balance, June 30, 2020$14.3
 $1.4
 $0.5
 $0.6
 $16.8
11

For the six months ended June 30, 2020, the incremental allowance of $4.0 million relates to an increase in past due accounts and default factors following the economic downturn related to COVID-19 to reflect the expectation that future defaults will exceed historical defaults. There is a risk that income may be reduced in future periods for additional credit losses.
Commercial Mortgage Loans
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. and Canada. As of June 30, 2020, approximately 40% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Utah and New York. 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 $0.1 million to $12.2 million as of June 30, 2020 and from $0.1 million to $12.3 million as of December 31, 2019.
Methodology:
The Company records commercial mortgage loans at amortized cost, net of the allowance for credit losses. The allowance for the Company’s commercial mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, utilizing a probability-of-default and loss methodology, which incorporates various probability weighted economic scenarios. The probability of default is estimated using macroeconomic factors as well as individual loan characteristics, including loan-to-value (“LTV”) and debt service coverage ratios (“DSC”), loan term, collateral type, geography and underlying credit. The loss given default is driven primarily by the type and value of underlying collateral, and to a lesser extent by expected liquidation costs and time to recovery. Each loan is analyzed individually based on loan-specific data elements to estimate the expected loss and then aggregated.
The Company places loans on nonaccrual status after 90 days of delinquent payments (unless the loans are secured and in the process of collection). A loan may be placed on nonaccrual status before this time if information is available that suggests collection is unlikely. The Company charges off loan and accrued interest balances that are deemed uncollectible. Charge offs are recorded to net income in the period deemed uncollectible.
Upon adoption of ASC 326 on January 1, 2020, the Company increased its allowance for credit losses from $0.6 million to $2.2 million with the after-tax impact of $1.3 million reflected in retained earnings. For the six months ended June 30, 2020, the CECL allowance was increased by an additional $1.9 million due to an increase in anticipated default factors following the recent economic downturn related to COVID-19.
The following table presentssummarizes the amortized cost basis of commercial mortgage loans, excluding allowance for credit losses, by origination year for certain key credit quality indicators at June 30, 2020.
 Origination Year  
 2019 2018 2017 2016 Prior Total % of Total
Loan to value ratios (1):             
70% and less$109.6
 $188.7
 $147.0
 $91.4
 $239.0
 $775.7
 97.6%
71% to 80%7.0
 —
 —
 6.9
 —
 13.9
 1.8%
81% to 95%—
 —
 —
 —
 4.6
 4.6
 0.6%
Total$116.6
 $188.7
 $147.0
 $98.3
 $243.6
 $794.2
 100.0%
              
 Origination Year  
 2019 2018 2017 2016 Prior Total % of Total
Debt service coverage ratios (2):             
Greater than 2.0$37.4
 $71.6
 $72.7
 $67.7
 $111.7
 $361.1
 45.4%
1.5 to 2.041.7
 73.7
 47.9
 20.9
 61.0
 245.2
 30.9%
1.0 to 1.537.5
 43.4
 26.4
 9.7
 66.5
 183.5
 23.1%
Less than 1.0—
 —
 —
 —
 4.4
 4.4
 0.6%
Total$116.6
 $188.7
 $147.0
 $98.3
 $243.6
 $794.2
 100.0%
(1)LTV ratio derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated at least annually.
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




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

Available for Sale Securities
ASC 326 includes certain changes to the accounting and reporting for impairments involving available for sale securities, including presentation of credit-related impairments as an allowance rather than as a permanent impairment, eliminating duration of unrealized loss as a consideration when assessing recognition of an impairment, recognition of credit impairments upon purchase of securities as applicable, and requiring reversals of previously recognized credit-related impairments when applicable. Effective January 1, 2020, the Company’s updated accounting policy for available for sale securities is as follows:
For available for sale fixed maturity securities in an unrealized loss position for which the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost basis, changes to the credit rating of the security by a nationally recognized statistical ratings organization and any adverse conditions specifically related to the security, industry or geographic area, among other factors. If this assessment indicates a potential credit loss may exist, the present value of cash flows expected to be collected are compared to the security’s amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit-related impairment exists, and a charge to income and an associated allowance for credit losses is recorded for the credit-related impairment. Any impairment not related to credit losses is recorded through other comprehensive income. The amount of the allowance for credit losses is limited to the amount by which fair value is less than the amortized cost basis. Upon recognizing a credit-related impairment, the cost basis of the security is not adjusted.
Subsequent changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. For fixed maturities where the Company records a credit loss, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. Write-offs are charged against the allowance when management concludes the financial asset is uncollectible. For fixed maturities where the Company expects a recovery in value, the effective yield method is utilized, and the investment is amortized to par.
For available for sale fixed maturity securities that the Company intends to sell, or for which it is more likely than not that the Company will be required to sell before recovery of its amortized cost basis, the entire impairment loss, or difference between the fair value and amortized cost basis of the security, is recognized in net realized gains (losses). The new cost basis of the security is the previous amortized cost basis less the impairment recognized and is not adjusted for any subsequent recoveries in fair value. 
The Company reports receivables for accrued investment income separately from fixed maturities available for sale and elected not to measure allowances for credit losses for accrued investment income as uncollectible balances are written off in a timely manner.

7. Income Taxes
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted, implementing numerous changes to tax law including temporary changes regarding the prior and future utilizationcomponents of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical correctionsincome from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits.
During the six months ended June 30, 2020, the Company filed a refund claim for $198.4 million and recorded a $79.3 million tax benefit related to the ability to carryback net operating losses to prior periods under the CARES Act, resulting in a decrease of the deferred tax asset of $107.1 million and increase to the current receivable of $186.4 million. The Company accrued a $5.1 million after-tax interest benefit related to the refund from the carryback for the three months ended June 30, 2020,discontinued operations included in the provision for income taxes in the consolidated statements of operations. The Company also recorded a $1.7 million refundable employee retention tax credit for the three months ended June 30, 2020, included in underwriting, general and administrative expenses in the consolidated statements of operations. Due to the recent enactment of this legislation, the Company continues to assess the potential tax impacts on its financial position and results of operations.operations:
Assurant, Inc.
Three Months Ended March 31,
20212020
Revenues
Net earned premiums$17.7 $18.3 
Fees and other income37.5 37.5 
Net investment income72.0 72.4 
Net realized losses on investments(1.1)(11.3)
Total revenues126.1 116.9 
Benefits, losses and expenses
Policyholder benefits74.0 72.0 
Amortization of deferred acquisition costs and value of business acquired19.2 18.9 
Underwriting, general and administrative expenses21.8 16.9 
Total benefits, losses and expenses115.0 107.8 
Income from discontinued operations before income taxes11.1 9.1 
(Benefit) provision for income taxes(3.2)1.9 
Net income from discontinued operations$14.3 $7.2 
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)





8.5. Segment Information
As of June 30, 2020,March 31, 2021, the Company had 43 reportable segments, excluding discontinued operations described above, which are defined based on the manner in which the Company’s chief operating decision maker, the Chief Executive Officer (“CEO”), reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered:
•Global Lifestyle: provides mobile device solutionsLifestyle;
•Global Housing; and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance products (referred to as “Global Financial Services and Other”);
Global Housing: provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”);
Global Preneed: provides pre-funded funeral insurance, final need insurance and related services; and
•Corporate and Other: includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), interest income earned from short-term investments held, income (expenses) primarily related to the Company’s frozen benefit plans, amounts related to businesses previously disposed of through reinsurance and the run-off of the Assurant Health business. Corporate and Other also includes goodwill impairments, the foreign currency gains (losses) from remeasurement of monetary assets and liabilities, changes in the fair value of derivative instruments and other expenses related to merger and acquisition activities, as well as other highly variable or unusual items other than reportable catastrophes (reportable catastrophe losses, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums).
12
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




The following tables summarize selected financial information by segment:
Three Months Ended March 31, 2021
Global LifestyleGlobal HousingCorporate
and Other		Consolidated
Revenues
Net earned premiums$1,648.7 $456.9 $0 $2,105.6 
Fees and other income213.6 36.1 0.2 249.9 
Net investment income50.8 19.4 6.1 76.3 
Net realized gains on investments0 0 0.8 0.8 
Total revenues1,913.1 512.4 7.1 2,432.6 
Benefits, losses and expenses
Policyholder benefits327.4 201.3 0 528.7 
Amortization of deferred acquisition costs and value of business acquired889.2 57.5 0 946.7 
Underwriting, general and administrative expenses527.2 168.8 39.7 735.7 
Interest expense0 0 28.4 28.4 
Total benefits, losses and expenses1,743.8 427.6 68.1 2,239.5 
Segment income (loss) from continuing operations before provision (benefit) for income tax169.3 84.8 (61.0)193.1 
Provision (benefit) for income taxes40.2 17.4 (13.0)44.6 
Segment net income (loss) from continuing operations$129.1 $67.4 $(48.0)148.5 
Net income from discontinued operations14.3 
Net income162.8 
Less: Net loss attributable to non-controlling interests0.2 
Net income attributable to stockholders163.0 
Less: Preferred stock dividends(4.7)
Net income attributable to common stockholders$158.3 
As of March 31, 2021
Segment assets:$24,335.2 $3,892.2 $16,183.2 $44,410.6 

13
 Three Months Ended June 30, 2020
          
 Global Lifestyle Global Housing Global Preneed 
Corporate
and Other
 Consolidated
Revenues         
Net earned premiums$1,568.1
 $453.2
 $15.1
 $—
 $2,036.4
Fees and other income200.6
 35.7
 35.2
 —
 271.5
Net investment income44.2
 16.4
 70.1
 6.5
 137.2
Net realized gains on investments—
 —
 —
 24.1
 24.1
Amortization of deferred gains on disposal of businesses—
 —
 —
 2.4
 2.4
Total revenues1,812.9
 505.3
 120.4
 33.0
 2,471.6
Benefits, losses and expenses         
Policyholder benefits343.1
 180.4
 68.5
 0.1
 592.1
Amortization of deferred acquisition costs and value of business acquired810.8
 56.2
 18.3
 —
 885.3
Underwriting, general and administrative expenses500.7
 161.1
 16.1
 58.3
 736.2
Iké net losses—
 —
 —
 4.5
 4.5
Interest expense—
 —
 —
 26.7
 26.7
Total benefits, losses and expenses1,654.6
 397.7
 102.9
 89.6
 2,244.8
Segment income (loss) before provision (benefit) for income tax158.3
 107.6
 17.5
 (56.6) 226.8
Provision (benefit) for income taxes36.5
 22.2
 3.8
 (14.1) 48.4
Segment income (loss) after taxes121.8
 85.4
 13.7
 (42.5) 178.4
Less: Net income attributable to non-controlling interests—
 —
 —
 (0.3) (0.3)
Net income (loss) attributable to stockholders121.8
 85.4
 13.7
 (42.8) 178.1
Less: Preferred stock dividends—
 —
 —
 (4.6) (4.6)
Net income (loss) attributable to common stockholders$121.8
 $85.4
 $13.7
 $(47.4) $173.5
 As of June 30, 2020
Segment assets:$22,763.9
 $4,036.9
 $7,473.2
 $9,959.2
 $44,233.2


Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




 Three Months Ended June 30, 2019
          
 Global Lifestyle Global Housing Global Preneed 
Corporate
and Other
 Consolidated
Revenues         
Net earned premiums$1,545.5
 $471.8
 $15.4
 $—
 $2,032.7
Fees and other income263.6
 38.3
 34.2
 —
 336.1
Net investment income56.5
 18.8
 70.6
 8.3
 154.2
Net realized gains on investments—
 —
 —
 17.8
 17.8
Amortization of deferred gains on disposal of businesses—
 —
 —
 4.7
 4.7
Total revenues1,865.6
 528.9
 120.2
 30.8
 2,545.5
Benefits, losses and expenses         
Policyholder benefits412.9
 207.8
 66.2
 0.1
 687.0
Amortization of deferred acquisition costs and value of business acquired740.7
 57.5
 17.6
 —
 815.8
Underwriting, general and administrative expenses570.2
 173.3
 14.7
 65.5
 823.7
Iké net losses—
 —
 —
 9.2
 9.2
Interest expense—
 —
 —
 26.5
 26.5
Total benefits, losses and expenses1,723.8
 438.6
 98.5
 101.3
 2,362.2
Segment income (loss) before provision (benefit) for income tax141.8
 90.3
 21.7
 (70.5) 183.3
Provision (benefit) for income taxes32.5
 18.8
 4.8
 (15.4) 40.7
Segment income (loss) after taxes109.3
 71.5
 16.9
 (55.1) 142.6
Less: Net loss attributable to non-controlling interest—
 —
 —
 1.5
 1.5
Net income (loss) attributable to stockholders109.3
 71.5
 16.9
 (53.6) 144.1
Less: Preferred stock dividends—
 —
 —
 (4.6) (4.6)
Net income (loss) attributable to common stockholders$109.3
 $71.5
 $16.9
 $(58.2) $139.5


Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)

Three Months Ended March 31, 2020
Global LifestyleGlobal HousingCorporate
and Other		Consolidated
Revenues
Net earned premiums$1,597.7 $467.8 $0 $2,065.5 
Fees and other income349.2 32.6 1.8 383.6 
Net investment income54.7 22.0 6.9 83.6 
Net realized losses on investments0 0 (84.0)(84.0)
Total revenues2,001.6 522.4 (75.3)2,448.7 
Benefits, losses and expenses
Policyholder benefits336.2 198.7 0.3 535.2 
Amortization of deferred acquisition costs and value of business acquired838.4 56.9 0 895.3 
Underwriting, general and administrative expenses667.9 173.3 51.4 892.6 
Interest expense0 0 25.5 25.5 
Total benefits, losses and expenses1,842.5 428.9 77.2 2,348.6 
Segment income (loss) from continuing operations before provision (benefit) for income taxes159.1 93.5 (152.5)100.1 
Provision (benefit) for income taxes38.2 19.3 (106.0)(48.5)
Segment net income (loss) from continuing operations$120.9 $74.2 $(46.5)148.6
Net income from discontinued operations7.2 
Net income155.8 
Less: Net income attributable to non-controlling interest(1.1)
Net income attributable to stockholders154.7 
Less: Preferred stock dividends(4.7)
Net income attributable to common stockholders$150.0 




 Six Months Ended June 30, 2020
          
 Global Lifestyle Global Housing Global Preneed 
Corporate
and Other
 Consolidated
Revenues         
Net earned premiums$3,165.8
 $921.0
 $33.4
 $—
 $4,120.2
Fees and other income549.8
 68.3
 70.3
 —
��688.4
Net investment income98.9
 38.4
 140.2
 15.7
 293.2
Net realized losses on investments—
 —
 —
 (71.2) (71.2)
Amortization of deferred gains on disposal of businesses—
 —
 —
 6.6
 6.6
Total revenues3,814.5
 1,027.7
 243.9
 (48.9) 5,037.2
Benefits, losses and expenses         
Policyholder benefits679.3
 379.1
 140.5
 0.4
 1,199.3
Amortization of deferred acquisition costs and value of business acquired1,649.2
 113.1
 37.2
 —
 1,799.5
Underwriting, general and administrative expenses1,168.6
 334.4
 33.1
 108.2
 1,644.3
Iké net losses—
 —
 —
 5.9
 5.9
Interest expense—
 —
 —
 52.2
 52.2
Total benefits, losses and expenses3,497.1
 826.6
 210.8
 166.7
 4,701.2
Segment income (loss) before provision (benefit) for income tax317.4
 201.1
 33.1
 (215.6) 336.0
Provision (benefit) for income taxes74.7
 41.5
 7.1
 (121.5) 1.8
Segment income (loss) after taxes242.7
 159.6
 26.0
 (94.1) 334.2
Less: Net income attributable to non-controlling interests—
 —
 —
 (1.4) (1.4)
Net income (loss) attributable to stockholders242.7
 159.6
 26.0
 (95.5) 332.8
Less: Preferred stock dividends—
 —
 —
 (9.3) (9.3)
Net income (loss) attributable to common stockholders$242.7
 $159.6
 $26.0
 $(104.8) $323.5

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




 Six Months Ended June 30, 2019
          
 Global Lifestyle Global Housing Global Preneed 
Corporate
and Other
 Consolidated
Revenues         
Net earned premiums$2,974.0
 $931.9
 $31.2
 $—
 $3,937.1
Fees and other income516.7
 78.2
 67.5
 2.0
 664.4
Net investment income115.4
 44.2
 139.7
 21.2
 320.5
Net realized gains on investments—
 —
 —
 46.6
 46.6
Amortization of deferred gains on disposal of businesses—
 —
 —
 12.5
 12.5
Total revenues3,606.1
 1,054.3
 238.4
 82.3
 4,981.1
Benefits, losses and expenses         
Policyholder benefits760.1
 406.7
 134.8
 0.1
 1,301.7
Amortization of deferred acquisition costs and value of business acquired1,446.5
 111.4
 35.2
 —
 1,593.1
Underwriting, general and administrative expenses1,126.0
 354.0
 31.6
 112.0
 1,623.6
Iké net losses—
 —
 —
 9.4
 9.4
Interest expense—
 —
 —
 53.0
 53.0
Total benefits, losses and expenses3,332.6
 872.1
 201.6
 174.5
 4,580.8
Segment income (loss) before provision (benefit) for income tax273.5
 182.2
 36.8
 (92.2) 400.3
Provision (benefit) for income taxes63.6
 38.0
 8.1
 (20.6) 89.1
Segment income (loss) after taxes209.9
 144.2
 28.7
 (71.6) 311.2
Less: Net income attributable to non-controlling interest—
 —
 —
 (1.4) (1.4)
Net income (loss) attributable to stockholders209.9
 144.2
 28.7
 (73.0) 309.8
Less: Preferred stock dividends—
 —
 —
 (9.3) (9.3)
Net income (loss) attributable to common stockholders$209.9
 $144.2
 $28.7
 $(82.3) $300.5

9.6. Contract Revenues
The Company partners with clients to provide consumers a diverse range of protection products and services. The Company’s revenues from protection products are accounted for as insurance contracts and are recognized over the term of the insurance protection provided. Revenues from service contracts and sales of products are recognized as the contractual performance obligations are satisfied or the products are delivered. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for performing the services or transferring products. If payments are received before the related revenue is recognized, the amount is recorded as unearned revenue or advance payment liabilities, until the performance obligations are satisfied or the products are transferred.
The disaggregated revenues from service contracts included in fees and other income on the consolidated statementstatements of operations are $155.6$164.9 million and $218.2$299.1 million for Global Lifestyle and $23.7$24.5 million and $27.4$22.1 million for Global Housing for the three months ended June 30,March 31, 2021 and 2020, and 2019, respectively. The disaggregated revenues from service contracts included in fees and other income on the consolidated statement of operations are $454.7 million and $425.8 million for Global Lifestyle and $45.8 million and $57.6 million for Global Housing for the six months ended June 30, 2020 and 2019, respectively.
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




Global Lifestyle
In the Company’s Global Lifestyle segment, revenues from service contracts and sales of products are primarily from the Company’s Connected Living business. Through partnerships with mobile carriers, the Company provides administrative services related to its mobile device protection products, including program design and marketing strategy, risk management, data analytics, customer support and claims handling, supply chain and service delivery, repair and logistics, and device disposition. Administrative fees are generally billed monthly based on the volume of services provided during the billing period (for example, based on the number of mobile subscribers) with payment due within a short-term period. Each service or bundle
14
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)



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 repaired or refurbished mobile and other electronic devices. Revenue from products solddevices, on behalf of its clients, for a bundled per unit fee. The entire processing of the device is recognized when risk of ownership transfers to customers, generally upon shipment. Each product hasconsidered one performance obligation with a standalone selling price thatand thus, the per unit fee is determined through analysis of various factors including market data, historical costs and product lifecycle status.recognized when the products are sold. Payments are generally due prior to shipment or within a short-term period.
Global Housing
In the Company’s Global Housing segment, revenues from service contracts and sales of products are primarily from the Company’s Lender-placed Insurance business. Under the Company’s Lender-placed Insurance business, the Company provides loan and claim payment tracking services for lenders. The Company generally invoices its customers weekly or monthly based on the volume of services provided during the billing period with payment due within a short-term period. Each service is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer.
Contract Balances
The receivables and unearned revenue under these contracts were $199.8$219.9 million and $83.2$91.6 million, respectively, as of June 30, 2020,March 31, 2021, and $185.0$257.9 million and $87.6$89.8 million, respectively, as of December 31, 2019.2020. 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,March 31, 2021 and 2020 and 2019 that was included in unearned revenue as of December 31, 2019 and 2018 was $7.0 million and $14.6 million, respectively. Revenue from service contracts and sales of products recognized during the six months ended June 30, 2020 and 2019 that was included in unearned revenue as of December 31, 2019 and 2018 was $27.2$11.7 million and $30.2$20.2 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, 2020March 31, 2021 and December 31, 2019,2020, the Company hashad approximately $15.5$10.9 million and $25.8$13.8 million, respectively, of such intangible assets attributed to service contracts that will be expensed over the term of the client contracts.


10.
7. Investments
The following tables show the cost or amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value and impairment included within accumulated other comprehensive income (“AOCI”) of the Company’s fixed maturity securities as of the dates indicated:
 March 31, 2021
 Cost or
Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Fixed maturity securities:
U.S. government and government agencies and authorities$72.5 $0 $2.9 $(0.4)$75.0 
States, municipalities and political subdivisions174.6 0 8.1 (2.0)180.7 
Foreign governments422.0 0 13.6 (1.1)434.5 
Asset-backed268.3 0 13.3 (0.4)281.2 
Commercial mortgage-backed280.0 0 12.8 (2.9)289.9 
Residential mortgage-backed629.4 0 37.6 (0.6)666.4 
U.S. corporate3,273.8 (1.2)271.3 (26.4)3,517.5 
Foreign corporate1,086.2 0 56.5 (12.0)1,130.7 
Total fixed maturity securities$6,206.8 $(1.2)$416.1 $(45.8)$6,575.9 
15
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




 June 30, 2020
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 Fair Value 
Impairment in
AOCI (1)
Fixed maturity securities:         
U.S. government and government agencies and authorities$129.2
 $7.4
 $—
 $136.6
 $—
States, municipalities and political subdivisions205.3
 31.3
 —
 236.6
 —
Foreign governments884.3
 144.3
 (1.1) 1,027.5
 —
Asset-backed485.7
 3.5
 (10.2) 479.0
 —
Commercial mortgage-backed240.4
 13.1
 (4.8) 248.7
 —
Residential mortgage-backed1,134.7
 98.6
 (0.2) 1,233.1
 2.7
U.S. corporate5,874.7
 1,021.0
 (32.1) 6,863.6
 15.4
Foreign corporate2,096.1
 322.5
 (4.1) 2,414.5
 —
Total fixed maturity securities$11,050.4
 $1,641.7
 $(52.5) $12,639.6
 $18.1
 
 December 31, 2019
 
Cost or
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 Fair Value 
Impairment in
AOCI (1)
Fixed maturity securities:         
U.S. government and government agencies and authorities$188.9
 $5.3
 $(0.1) $194.1
 $—
States, municipalities and political subdivisions216.1
 26.4
 —
 242.5
 —
Foreign governments916.9
 94.3
 (0.8) 1,010.4
 —
Asset-backed502.4
 3.1
 (2.3) 503.2
 —
Commercial mortgage-backed212.7
 10.2
 (0.8) 222.1
 —
Residential mortgage-backed1,235.3
 52.4
 (1.4) 1,286.3
 3.1
U.S. corporate5,679.8
 818.9
 (2.1) 6,496.6
 16.5
Foreign corporate2,112.7
 255.4
 (0.9) 2,367.2
 —
Total fixed maturity securities$11,064.8
 $1,266.0
 $(8.4) $12,322.4
 $19.6
(1)Represents the amount of non-credit related impairment recognized in AOCI. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date prior to adoption of ASC 326. See Note 3 for further information.
 December 31, 2020
 Cost or
Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Fixed maturity securities:
U.S. government and government agencies and authorities$90.4 $0 $3.7 $0 $94.1 
States, municipalities and political subdivisions164.4 0 11.0 (0.1)175.3 
Foreign governments442.4 0 27.4 (0.1)469.7 
Asset-backed251.9 0 9.4 (0.8)260.5 
Commercial mortgage-backed266.3 0 16.5 (1.4)281.4 
Residential mortgage-backed685.8 0 49.0 (0.2)734.6 
U.S. corporate3,315.6 (1.2)380.6 (4.4)3,690.6 
Foreign corporate1,029.0 0 80.6 (0.3)1,109.3 
Total fixed maturity securities$6,245.8 $(1.2)$578.2 $(7.3)$6,815.5 
The Company’s state, municipality and political subdivision holdings are highly diversified across the U.S., with 0 individual state, municipality or political subdivision exposure (including both general obligation and revenue securities) exceeding 0.3%0.4% of the overall investment portfolio as of June 30, 2020March 31, 2021 and December 31, 2019.2020. As of June 30, 2020March 31, 2021 and December 31, 2019,2020, the securities included general obligation and revenue bonds issued by states, cities, counties, school districts and similar issuers, including $38.7$39.5 million and $51.9$39.6 million, respectively, of advance refunded or escrowed-to-maturity bonds (collectively referred to as “pre-refunded revenue bonds”), which are bonds for which an irrevocable trust has been established to fund the remaining payments of principal and interest. As of June 30, 2020March 31, 2021 and December 31, 2019,2020, revenue bonds accounted for 58%61% and 60% of the holdings, respectively. Excluding pre-refunded revenue bonds, the activities supporting the income streams of the Company’s revenue bonds are across a broad range of sectors, primarily water, airport and marina, specifically pledged tax revenues, leases, colleges and universities and other miscellaneous sources such as bond banks, finance authorities and appropriations.
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




The Company’s investments in foreign government fixed maturity securities are held mainly in countries and currencies where the Company has policyholder liabilities, to facilitate matching of assets to the related liabilities. As of June 30, 2020,March 31, 2021, approximately 58%25%, 12%21% and 7%16% of the foreign government securities were held in Canadian government/provincials and the governments of Brazil and Mexico, respectively. As of December 31, 2019,2020, approximately 58%26%, 20%24% and 6%16% of the foreign government securities were held in Brazil, Canadian government/provincials and the governments of Brazil and Mexico, respectively. No other country represented more than 5%10% and 8% of the Company’s foreign government securities as of June 30, 2020March 31, 2021 and December 31, 2019.2020, respectively.
The Company had European investment exposure in its corporate fixed maturity securities of $831.0$617.2 million with a net unrealized gain of $102.0$21.6 million as of June 30, 2020March 31, 2021 and $802.3$589.5 million with a net unrealized gain of $82.4$41.8 million as of December 31, 2019.2020. Approximately 27%34% and 28%29% of the corporate fixed maturity European exposure was held in the financial industry as of June 30, 2020March 31, 2021 and December 31, 2019,2020, respectively. The Company’s largest European country exposure (the United Kingdom) represented approximately 4%6% of the fair value of the Company’s corporate fixed maturity securities as of June 30, 2020March 31, 2021 and December 31, 2019.2020. The Company’s international investments are managed as part of the overall portfolio with the same approach to risk management and focus on diversification.
The Company had exposure to the energy sector in its corporate fixed maturity securities of $721.4$290.0 million with a net unrealized gain of $49.3$19.5 million as of June 30, 2020March 31, 2021 and $784.4$319.4 million with a net unrealized gain of $93.1$23.0 million as of December 31, 2019.2020. Approximately 85%82% and 94%81% of the energy exposure is rated as investment grade as of June 30, 2020March 31, 2021 and December 31, 2019,2020, respectively.
The cost or amortized cost and fair value of fixed maturity securities as of June 30, 2020March 31, 2021 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.
 
Cost or
Amortized Cost
 Fair Value
Due in one year or less$469.9
 $475.3
Due after one year through five years2,449.4
 2,598.3
Due after five years through ten years2,436.6
 2,721.7
Due after ten years3,833.7
 4,883.5
Total9,189.6
 10,678.8
Asset-backed485.7
 479.0
Commercial mortgage-backed240.4
 248.7
Residential mortgage-backed1,134.7
 1,233.1
Total$11,050.4
 $12,639.6
16


The following table sets forth the net realized gains (losses), including impairment, recognized in the statement 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,
 2020 2019 2020 2019
Net realized gains (losses) related to sales and other:       
Fixed maturity securities$(1.2) $8.0
 $5.8
 $7.7
Equity securities (1)21.4
 7.0
 (26.8) 36.9
Commercial mortgage loans on real estate(0.4) —
 (1.8) —
Other investments(3.8) 5.2
 (3.0) 5.1
Consolidated investment entities (2)15.9
 (1.8) (32.3) (2.2)
Total net realized gains (losses) related to sales and other31.9
 18.4
 (58.1) 47.5
Net realized losses related to impairments:       
Fixed maturity securities(0.6) (0.6) (1.7) (0.9)
Other investments (3)(7.2) —
 (11.4) —
Total net realized losses related to impairments(7.8) (0.6) (13.1) (0.9)
Total net realized gains (losses)$24.1
 $17.8
 $(71.2) $46.6

(1)Six months ended June 30, 2020 and 2019 includes $2.2 million and $10.4 million, respectively, of gains on equity investment holdings accounted for under the measurement alternative. There were 0 changes in fair value recorded on equity investments holdings accounted for under the measurement alternative for the three months ended June 30, 2020 and 2019.
(2)Consists of net realized losses from the change in fair value of the Company’s direct investment in collateralized loan obligations (“CLOs”). Refer to Note 11 for additional information.
(3)Results for the three and six months ended June 30, 2020 consist of impairment losses on equity investment holdings accounted for under the measurement alternative.


Cost or
Amortized Cost		Fair Value
Due in one year or less$359.0 $363.5 
Due after one year through five years2,047.5 2,170.5 
Due after five years through ten years1,730.5 1,848.2 
Due after ten years892.1 956.2 
Total5,029.1 5,338.4 
Asset-backed268.3 281.2 
Commercial mortgage-backed280.0 289.9 
Residential mortgage-backed629.4 666.4 
Total$6,206.8 $6,575.9 
The following table sets forth the net realized gains (losses), including impairment, recognized in the consolidated statements of operations for the periods indicated:
 Three Months Ended March 31,
 20212020
Net realized gains (losses) related to sales and other:
Fixed maturity securities$3.0 $3.7 
Equity securities (1)(1.7)(34.9)
Commercial mortgage loans on real estate0.3 (0.2)
Other investments0.2 0.9 
Consolidated investment entities (2)0 (48.2)
Total net realized gains (losses) related to sales and other1.8 (78.7)
Net realized losses related to impairments:
Fixed maturity securities0 (1.1)
Other investments (1)(1.0)(4.2)
Total net realized losses related to impairments(1.0)(5.3)
Total net realized gains (losses)$0.8 $(84.0)
(1)Three months ended March 31, 2021 and 2020 includes $2.1 million and $2.2 million, respectively, of net gains on equity investment holdings accounted for under the measurement alternative. The carrying value of equity investments accounted for under the measurement alternative was $103.3 million and $96.0 million as of March 31, 2021 and 2020, respectively. These investments are included within other investments on the consolidated balance sheets. For the three months ended March 31, 2021 and 2020, there were impairments of $1.0 million and $4.2 million, respectively. For the three months ended March 31, 2021 and 2020, the cumulative carry value fair value increases were $37.1 million and $26.8 million, respectively. For the three months ended March 31, 2021 and 2020, the cumulative impairment losses were $19.6 million and $5.6 million, respectively.
(2)Consists of net realized losses from the change in fair value of the Company’s direct investment in collateralized loan obligations (“CLOs”).

The following table sets forth the portion of unrealized gains (losses) related to equity securities for the periods indicated:
 Three Months Ended June 30, Six Months Ended June 30,
 2020 2019 2020 2019
Net gains (losses) recognized on equity securities$21.4
 $7.0
 $(26.8) $36.9
Less: Net realized gains (losses) related to sales of equity securities0.9
 0.1
 0.9
 (0.9)
Total net unrealized gains (losses) on equity securities held$20.5
 $6.9
 $(27.7) $37.8

The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities as of June 30, 2020 and December 31, 2019 were as follows:
Three Months Ended March 31,
20212020
Net losses recognized on equity securities$(1.7)$(34.9)
Less: Net realized gains related to sales of equity securities0.9 0 
Total net unrealized losses on equity securities held$(2.6)$(34.9)
 June 30, 2020
 Less than 12 months 12 Months or More Total
 Fair Value 
Unrealized
Losses
 Fair Value 
Unrealized
Losses
 Fair Value 
Unrealized
Losses
Fixed maturity securities:           
Foreign governments30.2
 (1.1) —
 —
 30.2
 (1.1)
Asset-backed139.2
 (5.3) 82.4
 (4.9) 221.6
 (10.2)
Commercial mortgage-backed44.1
 (3.9) 4.4
 (0.9) 48.5
 (4.8)
Residential mortgage-backed14.8
 (0.1) 1.5
 (0.1) 16.3
 (0.2)
U.S. corporate312.9
 (29.0) 17.7
 (3.1) 330.6
 (32.1)
Foreign corporate109.9
 (4.1) —
 —
 109.9
 (4.1)
Total fixed maturity securities$651.1
 $(43.5) $106.0
 $(9.0) $757.1
 $(52.5)
17

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities as of March 31, 2021 and December 31, 2020 were as follows:
 March 31, 2021
 Less than 12 months12 Months or MoreTotal
Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
Fixed maturity securities:
U.S. government and government agencies and authorities$17.9 $(0.4)$0 $0 $17.9 $(0.4)
States, municipalities and political subdivisions72.3 (2.0)0 0 72.3 (2.0)
Foreign governments54.9 (1.1)0 0 54.9 (1.1)
Asset-backed80.1 (0.2)33.4 (0.2)113.5 (0.4)
Commercial mortgage-backed72.1 (2.3)2.9 (0.6)75.0 (2.9)
Residential mortgage-backed36.7 (0.5)3.1 (0.1)39.8 (0.6)
U.S. corporate397.8 (23.8)27.7 (2.6)425.5 (26.4)
Foreign corporate259.0 (11.9)3.1 (0.1)262.1 (12.0)
Total fixed maturity securities$990.8 $(42.2)$70.2 $(3.6)$1,061.0 $(45.8)
 December 31, 2019
 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$21.9
 $(0.1) $—
 $—
 $21.9
 $(0.1)
Foreign governments115.7
 (0.8) —
 —
 115.7
 (0.8)
Asset-backed66.9
 (0.2) 105.1
 (2.1) 172.0
 (2.3)
Commercial mortgage-backed20.0
 (0.3) 4.3
 (0.5) 24.3
 (0.8)
Residential mortgage-backed82.5
 (0.6) 82.6
 (0.8) 165.1
 (1.4)
U.S. corporate87.5
 (1.4) 14.4
 (0.7) 101.9
 (2.1)
Foreign corporate45.8
 (0.7) 7.5
 (0.2) 53.3
 (0.9)
Total fixed maturity securities$440.3
 $(4.1) $213.9
 $(4.3) $654.2
 $(8.4)

 December 31, 2020
 Less than 12 months12 Months or MoreTotal
 Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
Fixed maturity securities:
States, municipalities and political subdivisions$6.1 $(0.1)$0 $0 $6.1 $(0.1)
Foreign governments28.3 (0.1)0 0 28.3 (0.1)
Asset-backed54.5 (0.2)37.4 (0.6)91.9 (0.8)
Commercial mortgage-backed28.2 (0.7)3.3 (0.7)31.5 (1.4)
Residential mortgage-backed23.9 (0.1)1.5 (0.1)25.4 (0.2)
U.S. corporate71.9 (2.9)13.8 (1.5)85.7 (4.4)
Foreign corporate30.1 (0.3)0 0 30.1 (0.3)
Total fixed maturity securities$243.0 $(4.4)$56.0 $(2.9)$299.0 $(7.3)
Total gross unrealized losses represented approximately 7%4% and 1%2% of the aggregate fair value of the related securities as of June 30, 2020March 31, 2021 and December 31, 2019,2020, respectively. Approximately 83%92% and 49%60% of these gross unrealized losses had been in a continuous loss position for less than twelve months as of June 30, 2020March 31, 2021 and December 31, 2019,2020, respectively. The total gross unrealized losses are comprised of 418619 and 330180 individual securities as of June 30, 2020March 31, 2021 and December 31, 2019,2020, respectively. In accordance with its policy, the Company concluded that for these securities, the gross unrealized losses as of June 30, 2020March 31, 2021 and December 31, 20192020 were related to non-credit factors and therefore, did not incurrecognize credit-related losses during the three and six months ended June 30, 2020 (and therefore, there was no allowance recognized as of June 30, 2020).March 31, 2021. Additionally, the Company currently does not intend to and is not required to sell these investments prior to an anticipated recovery in value.

11. Variable Interest Entities
In the normal course of business, the Company is involved with various types of investment entities that may be considered VIEs. The Company evaluates its involvement with each entity to determine whether consolidation is required. The Company’s maximum risk of loss is limited to the carrying value and unfunded commitments of its investments in the VIEs.
Consolidated VIEs
One of the Company’s subsidiaries is registered with the U.S. Securities and Exchange Commission (the “SEC”) as an investment adviser. The subsidiary (or one of its affiliates) manages and invests in CLOs and real estate funds and may conduct other forms of investment activities. The Company has determined thatentered into commercial mortgage loans, collateralized by the CLOs andunderlying real estate, fund are VIEson properties located throughout the U.S. and consolidated each becauseCanada. As of March 31, 2021, approximately 53% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Texas and Oregon. Although the Company was deemedhas a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to berepay their loans. The outstanding balance of commercial mortgage loans range in size from $0.2 million to $9.9 million as of March 31, 2021 and from $0.1 million to $9.9 million as of December 31, 2020.
Credit quality indicators for commercial mortgage loans are loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the primary beneficiary of these entities due to (i) its role as collateral manager, which gives it the power to direct the activities that most significantly impact the economic performanceprincipal amount of the entities, and (ii) its economic interest in the entities, which exposes itloan to losses and the right to receive benefits that could potentially be significant to the entities.
In connection with the formation of CLO structures, the Company forms special purpose entities capitalized by contributions from the Company’s wholly owned subsidiaries. Subsequent to capitalization, the special purpose entities purchase senior secured leveraged loans funded by contributions from the Company and a short-term warehousing credit facility. Borrowings from the warehousing credit facility are non-recourse to the Company and are fully repaid once the CLO closes. Additionally, the amounts contributed by the Company to fund the initial capitalization are returned after the CLO closes. The Company may elect to use the return of capital to purchase a direct investment in the CLO.
Collateralized Loan Obligations: The CLO entities are collateralized financing entities. Under the elected measurement alternative for collateralized financing entities, the carrying value of the CLO debt equals the fair value of the CLO assets (senior secured leveraged loans) asunderlying property collateralizing the assets have more observable fair values. The CLO liabilities are reduced by the fair value of the beneficial interests the Company retains in the CLOloan, and the carrying value of any beneficial interests that representis
18
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




compensation for services. CLO earnings attributablecommonly expressed as a percentage. The debt-service coverage ratio compares a property’s net operating income to the Company’s shareholdersits debt-service payments and is commonly expressed as a ratio. The loan-to-value and debt-service coverage ratios are measured by the changegenerally updated annually in the fair value of the Company’s CLO investments, net investment income earned and investment management and contingent performance fees earned. Investment management fees are reported as a reduction to investment expenses in the consolidated statements of operations. The assets of the CLOs are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLOs.fourth quarter.
As of June 30, 2020, the Company and its subsidiaries held a range of 43.8% to 100.0% of the most subordinated debt tranches of four CLO entities and 5.0% of senior debt tranches in one CLO entity, which represents a range of 6.0% to 8.8% overall ownership in each of the CLO entities. The carrying value of the Company’s investment in the CLOs that have closed was $51.4 million and $77.4 million in subordinated debt tranches and $20.6 million and $21.1 million in senior debt tranches as of June 30, 2020 and December 31, 2019, respectively. The Company’s investment in a fifth CLO structure, which had previously been funded by $124.9 million of contributions from the Company’s wholly owned subsidiaries, was liquidated during the second quarter of 2020.
The Company’s retained beneficial interests in subordinated tranches are measured at fair value using the market or income valuation techniques using significant unobservable inputs and assumptions, including prepayment, default rate, recovery lag, reinvestment, collateral liquidation price, discount rate and call date assumptions.
The CLO asset management platform was sold in July 2020. See Note 21 for additional information.
Real Estate Fund:The Company’s real estate fund investment is a closed ended fund that includes contributions from third party investors, which are recorded as non-controlling interests. Real estate fund earnings attributable to the Company’s shareholders are measured by the net investment income of the real estate fund, which includes the change in fair value of the Company’s investments in the real estate fund and investment management fees earned. The Company has a majority investment in the real estate fund in the form of an equity interest. The carrying value of the Company’s investment in the real estate fund was $45.7 million and $88.3 million as of June 30, 2020 and December 31, 2019, respectively. The Company’s unfunded commitment in the real estate fund was $1.2 million as of June 30, 2020.
For all consolidated investment entities, intercompany transactions are eliminated upon consolidation.
Fair Value of VIE Assets and Liabilities
The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 12 for the definition of the three levels of the fair value hierarchy. The following table presents the Company’s fair value hierarchyamortized cost basis of commercial mortgage loans, excluding the allowance for financial assetscredit losses, by origination year for certain key credit quality indicators at March 31, 2021 and liabilities held by consolidated investment entities measured at fair value on a recurring basis as of the dates indicated:December 31, 2020.
March 31, 2021
Origination Year
20212020201920182017PriorTotal% of Total
Loan to value
ratios (1):
70% and less$5.5 $2.9 $0 $0 $4.1 $115.4 127.9 85.8 %
71% to 80%$4.6 $2.6 $0 $4.8 $0 $0 12.0 8.0 %
81% to 95%$0 $0 $0 $0 $0 $2.1 2.1 1.4 %
Greater than 95%$0 $0 $0 $0 $5.9 $1.2 7.1 4.8 %
Total$10.1 $5.5 $0 $4.8 $10.0 $118.7 149.1 100.0 %
March 31, 2021
Origination Year
20212020201920182017PriorTotal% of Total
Debt service coverage ratios (2):
Greater than 2.0$5.8 $5.5 $0 $0 $4.1 $81.8 $97.2 65.3 %
1.5 to 2.02.9 0 0 4.8 0 17.7 25.4 17.0 %
1.0 to 1.51.4 0 0 0 0 14.6 16.0 10.7 %
Less than 1.00 0 0 0 5.9 4.6 10.5 7.0 %
Total$10.1 $5.5 $0 $4.8 $10.0 $118.7 $149.1 100.0 %
December 31, 2020
Origination Year
20202019201820172016PriorTotal% of Total
Loan to value
ratios (1):
70% and less$2.9 $0 $0 $4.1 $29.0 $87.1 $123.1 88.0 %
71% to 80%2.6 0 4.8 0 0 0 7.4 5.3 %
81% to 95%0 0 0 0 0 2.2 2.2 1.6 %
Greater than 95%0 0 0 6.0 0 1.2 7.2 5.1 %
Total$5.5 $0 $4.8 $10.1 $29.0 $90.5 $139.9 100.0 %
19
 June 30, 2020
 Total Level 1 Level 2 Level 3
Financial Assets       
Investments:       
Cash and cash equivalents$14.9
 $14.9
(1)$—
 $—
Corporate debt securities1,581.0
 —
 1,581.0
 —
Real estate fund54.5
 —
 —
 54.5
Total financial assets$1,650.4
 $14.9
 $1,581.0
 $54.5
        
Financial Liabilities       
Collateralized loan obligation notes$1,505.0
 $—
 $1,505.0
 $—
Total financial liabilities$1,505.0
 $—
 $1,505.0
 $—
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




 December 31, 2019
 Total Level 1 Level 2 Level 3
Financial Assets       
Investments:       
Cash and cash equivalents$32.9
 $32.9
(1)$—
 $—
Corporate debt securities1,850.7
 —
 1,850.7
 —
Real estate fund107.2
 —
 —
 107.2
Total financial assets$1,990.8
 $32.9
 $1,850.7
 $107.2
        
Financial Liabilities       
Collateralized loan obligation notes$1,603.1
 $—
 $1,603.1
 $—
Total financial liabilities$1,603.1
 $—
 $1,603.1
 $—
(1)Amounts consist of money market funds.
Level 2 Securities
Corporate debt securities: These assets are comprised of senior secured leveraged loans. The Company values these securities using estimates of fair value from a pricing service which utilizes the market valuation technique. The primary observable market inputs used by the pricing service are prices of reported trades from dealers. The fair value is calculated using a simple average of the prices received.
Collateralized

December 31, 2020
Origination Year
20202019201820172016PriorTotal% of Total
Debt service coverage ratios (2):
Greater than 2.0$5.5 $0 $0 $4.1 $26.4 $53.3 $89.3 63.9 %
1.5 to 2.00 0 4.8 0 2.6 17.5 24.9 17.8 %
1.0 to 1.50 0 0 0 0 15.0 15.0 10.7 %
Less than 1.00 0 0 6.0 0 4.7 10.7 7.6 %
Total$5.5 $0 $4.8 $10.1 $29.0 $90.5 $139.9 100.0 %
(1)Loan-to-value ratio derived from current loan obligation notes: As the Company elected the measurement alternative, the carrying value of the CLO debt is equal tobalance divided by the fair value of the CLO assets.property. The CLO notes are classified within Level 2 of the fair value hierarchy, consistent with the classification of the majority of the CLO financial assets.
Level 3 Securities
Real estate fund: These assets are comprised of investments in limited partnerships whose underlying investments are real estate properties. Management estimates the fair value of these real estate assetsthe underlying commercial properties is updated at least annually.
(2)Debt-service coverage ratio calculated using the market, income or cost approach valuation techniques, using significant unobservable inputs and assumptions, including capitalization rates, discount rates, market comparable prices, leasing assumptions and replacement costs.most recent reported operating results from property operators divided by annual debt service coverage.
The following table summarizes the change in balance sheet carrying value associated with Level 3 assets held by consolidated investment entities measured at fair value during the three and six months ended June 30, 2020 and 2019:
 Three Months Ended June 30, Six Months Ended June 30,
 2020 2019 2020 2019
Balance, beginning of period$54.4
 $121.4
 $107.2
 $112.0
Purchases—
 15.4
 —
 15.4
Sales—
 —
 (61.0) —
Total income included in earnings0.1
 1.4
 8.3
 10.8
Balance, end of period$54.5
 $138.2
 $54.5
 $138.2


12.8. Fair Value Disclosures
Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures
The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




transaction between market participants at the measurement date. In accordance with this guidance, theThe 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, 2020March 31, 2021 and December 31, 2019.2020. 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
20
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)



Plan, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the AIP, contingent considerations related to business combinations and other derivatives, including the put/call for Iké.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. 
 March 31, 2021 
 TotalLevel 1 Level 2 Level 3 
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities$75.0 $0   $75.0   $0   
States, municipalities and political subdivisions180.7 0   180.7   0   
Foreign governments434.5 0.5   433.6   0.4   
Asset-backed281.2 0   279.7   1.5 
Commercial mortgage-backed289.9 0   281.6   8.3   
Residential mortgage-backed666.4 0   666.4   0   
U.S. corporate3,517.5 0 3,506.3 11.2 
Foreign corporate1,130.7 0   1,126.9   3.8   
Equity securities:
Mutual funds42.1 42.1 0 0 
Common stocks15.8 13.8   0.6   1.4   
Non-redeemable preferred stocks235.3 0   234.2   1.1   
Short-term investments116.0 87.8 (2)28.2 0   
Other investments231.4 73.0 (1)158.3 (3)0.1 
Cash equivalents872.5 831.5 (2)41.0 (3)0   
Other assets0.1 0 0.1 (4)0 
Assets held in separate accounts11.2 6.6 (1)4.6 (3)0   
Total financial assets$8,100.3 $1,055.3   $7,017.2   $27.8   
Financial Liabilities
Other liabilities$75.8 $73.0 (1)$0 $2.8 (5)
Liabilities related to separate accounts11.2 6.6 (1)4.6 (3)0   
Total financial liabilities$87.0 $79.6   $4.6   $2.8   

21
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




 December 31, 2020 
 TotalLevel 1 Level 2 Level 3 
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities$94.1 $0  $94.1  $0  
States, municipalities and political subdivisions175.3 0  175.3  0  
Foreign governments469.7 0.5  468.8  0.4  
Asset-backed260.5 0  260.5  0  
Commercial mortgage-backed281.4 0  272.7  8.7  
Residential mortgage-backed734.6 0  734.6  0  
U.S. corporate3,690.6 0 3,678.6 12.0 
Foreign corporate1,109.3 0  1,105.4  3.9  
Equity securities:
Mutual funds42.3 42.3 0 0 
Common stocks15.2 13.3  0.7  1.2  
Non-redeemable preferred stocks232.7 0  231.6  1.1  
Short-term investments253.5 202.0 (2)51.5 0  
Other investments241.3 72.9 (1)168.3 (3)0.1 
Cash equivalents1,558.6 1,536.6 (2)22.0 (3)0  
Assets held in separate accounts11.4 6.7 (1)4.7 (3)0  
Total financial assets$9,170.5 $1,874.3  $7,268.8  $27.4  
Financial Liabilities
Other liabilities$76.1 $72.9 (1)$0.5 (4)$2.7 (5)
Liabilities related to separate accounts11.4 6.7 (1)4.7 (3)0  
Total financial liabilities$87.5 $79.6  $5.2  $2.7  
(1)Primarily includes mutual funds and related obligations.
(2)Primarily includes money market funds.
(3)Primarily includes fixed maturity securities and related obligations.
(4)Primarily includes derivatives.
(5)Includes contingent consideration liabilities and other derivatives.
22
 June 30, 2020 
 Total Level 1 Level 2 Level 3 
Financial Assets        
Fixed maturity securities:        
U.S. government and government agencies and authorities$136.6
 $—
  $136.6
  $—
  
States, municipalities and political subdivisions236.6
 —
  236.6
  —
  
Foreign governments1,027.5
 0.5
  1,027.0
  —
  
Asset-backed479.0
 —
  479.0
  —
 
Commercial mortgage-backed248.7
 —
  228.3
  20.4
  
Residential mortgage-backed1,233.1
 —
  1,219.7
  13.4
  
U.S. corporate6,863.6
 —
 6,836.0
 27.6
 
Foreign corporate2,414.5
 —
  2,382.8
  31.7
  
Equity securities:        
Mutual funds47.7
 47.7
 —
 —
 
Common stocks20.1
 18.5
  0.8
  0.8
  
Non-redeemable preferred stocks308.5
 —
  306.5
  2.0
  
Short-term investments173.7
 159.4
(2)14.3
 —
  
Other investments237.8
 70.1
(1)167.7
(3)—
 
Cash equivalents1,443.5
 1,399.9
(2)43.6
(3)—
  
Other assets3.4
 —
 3.0
(4)0.4
(4)
Assets held in separate accounts1,819.4
 1,654.6
(1)164.8
(3)—
  
Total financial assets$16,693.7
 $3,350.7
  $13,246.7
  $96.3
  
         
Financial Liabilities        
Other liabilities$70.1
 $70.1
(1)$—
 $—
 
Liabilities related to separate accounts1,819.4
 1,654.6
(1)164.8
(3)—
   
Total financial liabilities$1,889.5
 $1,724.7
  $164.8
   
$—
   

Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




 December 31, 2019 
 Total Level 1 Level 2 Level 3 
Financial Assets        
Fixed maturity securities:        
U.S. government and government agencies and authorities$194.1
 $—
 $194.1
 $—
 
States, municipalities and political subdivisions242.5
 —
 242.5
 —
 
Foreign governments1,010.4
 0.3
 1,010.1
 —
 
Asset-backed503.2
 —
 503.2
 —
 
Commercial mortgage-backed222.1
 —
 198.6
 23.5
 
Residential mortgage-backed1,286.3
 —
 1,286.3
 —
 
U.S. corporate6,496.6
 —
 6,494.8
 1.8
 
Foreign corporate2,367.2
 —
 2,331.5
 35.7
 
Equity securities:        
Mutual funds45.5
 45.5
 —
 —
 
Common stocks23.5
 22.8
 0.7
 —
 
Non-redeemable preferred stocks319.5
 —
 317.3
 2.2
 
Short-term investments367.5
 271.4
(2)96.1
 —
 
Other investments234.6
 70.3
(1)164.3
(3)—
 
Cash equivalents1,287.5
 1,277.8
(2)9.7
(3)—
 
Assets held in separate accounts1,806.3
 1,623.7
(1)182.6
(3)—
 
Total financial assets$16,406.8
 $3,311.8
 $13,031.8
 $63.2
 
         
Financial Liabilities        
Other liabilities$172.0
 $70.3
(1)$101.5
(5)$0.2
 
Liabilities related to separate accounts1,806.3
 1,623.7
(1)182.6
(3)—
 
Total financial liabilities$1,978.3
 $1,694.0
 $284.1
 $0.2
 
(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 derivative assets.
(5)Includes the put/call related to the investment in Iké. See Note 5 for more information.

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:
Assurant, Inc.
 March 31, 2021
  Fair Value
 Carrying
Value		TotalLevel 1Level 2Level 3
Financial Assets
Commercial mortgage loans on real estate$147.9 $160.7 $0 $0 $160.7 
Other investments50.4 50.4 14.3 0 36.1 
Other assets21.9 21.9 0 0 21.9 
Total financial assets$220.2 $233.0 $14.3 $0 $218.7 
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)$69.6 $81.5 $0 $0 $81.5 
Funds withheld under reinsurance359.8 359.8 359.8 0 0 
Debt2,203.7 2,455.0 0 2,455.0 0 
Total financial liabilities$2,633.1 $2,896.3 $359.8 $2,455.0 $81.5 
 December 31, 2020
  Fair Value
  
Carrying
Value		TotalLevel 1Level 2Level 3
Financial Assets
Commercial mortgage loans on real estate$138.3 $198.3 $0 $0 $198.3 
Other investments52.1 52.1 14.4 0 37.7 
Other assets23.3 23.3 0 0 23.3 
Total financial assets$213.7 $273.7 $14.4 $0 $259.3 
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)$70.6 $85.4 $0 $0 $85.4 
Funds withheld under reinsurance358.6 358.6 358.6 0 0 
Debt2,252.9 2,540.0 0 2,540.0 0 
Total financial liabilities$2,682.1 $2,984.0 $358.6 $2,540.0 $85.4 
Notes to Consolidated Financial Statements (unaudited)(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 table above.
(in millions, except number of shares and per share amounts)




 June 30, 2020
   Fair Value
 
Carrying
Value
 Total Level 1 Level 2 Level 3
Financial Assets         
Commercial mortgage loans on real estate$790.1
 $814.0
 $—
 $—
 $814.0
Other investments166.8
 166.8
 30.8
 —
 136.0
Other assets26.9
 26.9
 —
 —
 26.9
Total financial assets$983.8
 $1,007.7
 $30.8
 $—
 $976.9
Financial Liabilities         
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)$527.8
 $574.2
 $—
 $—
 $574.2
Funds withheld under reinsurance346.8
 346.8
 346.8
 —
 —
Debt2,208.0
 2,362.5
 —
 2,362.5
 —
Total financial liabilities$3,082.6
 $3,283.5
 $346.8
 $2,362.5
 $574.2
 
 December 31, 2019
   Fair Value
  
Carrying
Value
 Total Level 1 Level 2 Level 3
Financial Assets         
Commercial mortgage loans on real estate$815.0
 $843.8
 $—
 $—
 $843.8
Other investments140.0
 140.0
 30.7
 —
 109.3
Other assets28.9
 28.9
 —
 —
 28.9
Total financial assets$983.9
 $1,012.7
 $30.7
 $—
 $982.0
Financial Liabilities         
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)$551.6
 $588.4
 $—
 $—
 $588.4
Funds withheld under reinsurance319.4
 319.4
 319.4
 —
 —
Debt2,006.9
 2,190.6
 —
 2,190.6
 —
Total financial liabilities$2,877.9
 $3,098.4
 $319.4
 $2,190.6
 $588.4
(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 table above.

13.9. 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.
23
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented.
For the Three Months Ended March 31,
20212020
Claims and benefits payable, at beginning of period$1,610.3 $1,613.1 
Less: Reinsurance ceded and other(849.4)(855.1)
Net claims and benefits payable, at beginning of period760.9 758.0 
Incurred losses and loss adjustment expenses related to:
Current year574.9 580.2 
Prior years(46.2)(45.0)
Total incurred losses and loss adjustment expenses528.7 535.2 
Paid losses and loss adjustment expenses related to:
Current year235.8 277.8 
Prior years268.3 268.9 
Total paid losses and loss adjustment expenses504.1 546.7 
Net claims and benefits payable, at end of period785.5 746.5 
Plus: Reinsurance ceded and other (1)792.5 857.8 
Claims and benefits payable, at end of period (1)$1,578.0 $1,604.3 
 For the Six Months Ended June 30,
 2020 2019
Claims and benefits payable, at beginning of period$2,687.7
 $2,813.7
Less: Reinsurance ceded and other(1,900.0) (2,053.7)
Net claims and benefits payable, at beginning of period787.7
 760.0
Incurred losses and loss adjustment expenses related to:   
Current year1,242.1
 1,339.4
Prior years(43.1) (37.7)
Total incurred losses and loss adjustment expenses1,199.0
 1,301.7
Paid losses and loss adjustment expenses related to:   
Current year786.9
 882.9
Prior years399.4
 409.2
Total paid losses and loss adjustment expenses1,186.3
 1,292.1
Net claims and benefits payable, at end of period800.4
 769.6
Plus: Reinsurance ceded and other (1)1,868.7
 1,952.6
Claims and benefits payable, at end of period (1)$2,669.1
 $2,722.2

(1)Includes reinsurance recoverables and claims and benefits payable of $66.1 million and $72.8 million as of March 31, 2021 and 2020, 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.
(1)Includes reinsurance recoverables and claims and benefits payable of $72.0 million and $83.2 million as of June 30, 2020 and 2019, 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 favorable development in both periods presented in the roll forward table above. Global Lifestyle contributed $29.0$30.6 million and $30.3$29.7 million to the net favorable development during the sixthree months ended June 30,March 31, 2021 and 2020, and 2019, respectively. The net favorable development in both years was attributable to nearly all lines of business across most of the Company’s regions with a concentration on more recent accident years and based on emerging evaluations regarding loss experience each period. Many of these contracts and products contain retrospective commission (profit sharing) provisions that would result in offsetting increases or decreases in expense dependent on if the development was favorable or unfavorable. Global Housing contributed $4.3$12.6 million and $3.9$9.9 million of net favorable development for the sixthree months ended June 30,March 31, 2021 and 2020, and 2019, respectively. The net favorable development in 2020both years was primarily attributable to Lender-placed Insurance products from the most recent accident year 2019years due to lower than expected non-catastrophe claim frequency for water damage and other claims. The net favorable development in 2019 was primarily attributable to prior catastrophes, whereby increased subrogation associated with the 2017 and 2018 California wildfires was partially offset by net unfavorable development from Hurricane Michael. Global Preneed and otherfrequency. All others contributed $9.8$3.0 million and $3.5$5.4 million inon net favorable development for the sixthree months ended June 30,March 31, 2021 and 2020, and 2019, respectively.

24
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




14.10. Debt
The following table shows the principal amount and carrying value of the Company’s outstanding debt, less unamortized
discount and issuance costs as applicable, as of June 30, 2020March 31, 2021 and December 31, 2019:2020:
March 31, 2021December 31, 2020
Principal AmountCarrying ValuePrincipal AmountCarrying Value
Floating Rate Senior Notes due March 2021 (1)$0 $0 $50.0 $50.0 
4.00% Senior Notes due March 2023350.0 349.0 350.0 348.9 
4.20% Senior Notes due September 2023300.0 298.5 300.0 298.4 
4.90% Senior Notes due March 2028300.0 297.2 300.0 297.2 
3.70% Senior Notes due February 2030350.0 347.1 350.0 347.0 
6.75% Senior Notes due February 2034275.0 272.3 275.0 272.3 
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2)400.0 395.6 400.0 395.4 
5.25% Subordinated Notes due January 2061250.0 244.0 250.0 243.7 
Total Debt$2,203.7 $2,252.9 
 June 30, 2020 December 31, 2019
 Principal Amount Carrying Value Principal Amount Carrying Value
Floating Rate Senior Notes due March 2021 (1)$50.0
 $49.9
 $50.0
 $49.9
4.00% Senior Notes due March 2023350.0
 348.7
 350.0
 348.5
4.20% Senior Notes due September 2023300.0
 298.1
 300.0
 297.8
4.90% Senior Notes due March 2028300.0
 297.0
 300.0
 296.8
3.70% Senior Notes due February 2030350.0
 346.9
 350.0
 346.8
6.75% Senior Notes due February 2034275.0
 272.2
 275.0
 272.1
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2)400.0
 395.2
 400.0
 395.0
Total Senior and Subordinated Notes  2,008.0
   2,006.9
Revolving Credit Facility (3)200.0
 200.0
 —
 —
Total Debt  $2,208.0
   $2,006.9
(1)The outstanding aggregate principal amount was repaid in January 2021. Prior to repayment, these senior notes bore floating interest at a rate equal to three-month LIBOR plus 1.25% per annum.
(1)Bears floating interest at a rate equal to three-month LIBOR plus 1.25% per annum.
(2)Bears a 7.00% annual interest rate to March 2028 and an annual interest rate equal to three-month LIBOR plus 4.135% thereafter.
(3)Borrowings under the Credit Facility (as defined below) for second quarter 2020 bore a floating interest rate initially equal to three-month LIBOR plus 1.50% per annum. The loan was continued upon expiration of the initial interest period at a floating interest rate equal to one-month LIBOR plus 1.50% per annum.
(2)Bears a 7.00% annual interest rate to March 2028 and an annual interest rate equal to three-month LIBOR plus 4.135% thereafter.

Credit Facility
The Company has a senior unsecured $450.0 million revolving credit agreement (the “Credit Facility”) with a syndicate of banks arranged by JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association (the “Lenders”). 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 $450.0 million, which may be increased up to $575.0 million. The Credit Facility is available until December 2022, provided the Company is in compliance with all covenants. The Credit Facility has a sub-limit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for ourthe Company’s commercial paper program or for general corporate purposes.
On As of March 27, 2020,31, 2021, 0 borrowings were outstanding under the Company drew down $200.0 million from its Credit Facility, as a precautionary measure to strengthen its liquidity position and capital flexibility due to the uncertainty caused by the COVID-19 pandemic. The initial interest period for the loan ended on June 26, 2020 and bore a floating interest rate equal to three-month LIBOR plus 1.50% per annum. Upon the expiration of the initial interest period, the Company continued the $200.0 million loan for an additional month bearing a floating interest rate equal to one-month LIBOR plus 1.50% per annum. As of June 30, 2020, $241.0 million out of the $450.0$445.5 million was available under the Credit Facility due to $200.0 million of borrowings and $9.0$4.5 million of letters of credit. Total interest expense on the $200.0 million draw for the three months ended June 30, 2020 was $1.5 million.credit outstanding.
Interest Rate Derivatives
In March 2018, the Company exercised a series of derivative transactions it had entered into in 2017 to hedge the interest rate risk related to expected borrowing to finance the acquisition of TWG Holdings Limited and its subsidiaries. The Company determined that the derivatives qualified for hedge accounting as effective cash flow hedges and recognized a deferred gain of $26.7 million upon settlement that was reported through other comprehensive income. The deferred gain is being recognized as a reduction in interest expense related to the 4.20% senior notes due 2023, the 4.90% senior notes due 2028 and the 7.00% fixed-to-floating rate subordinated notes due 2048, in each case on an effective yield basis. The amortization of the deferred gain for the three months ended June 30,March 31, 2021 and 2020 and 2019 was $0.8 million, and the amortization of deferred gain for six months ended June 30, 2020 and 2019 was $1.5$0.7 million. The remaining deferred gain as of June 30, 2020March 31, 2021 was $20.0$17.9 million.

25
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)





15.11. Accumulated Other Comprehensive Income
Certain amounts included in the consolidated statements of comprehensive income are net of reclassification adjustments. The following tables summarize those reclassification adjustments (net of taxes) for the periods indicated: 
 Three Months Ended March 31, 2021
 Foreign
currency
translation
adjustment		Net unrealized
gains on
investments		Net unrealized gains on derivative transactionsCredit related impairmentNon-credit related impairmentUnamortized net losses on Pension PlansAccumulated
other
comprehensive
income
Balance at December 31, 2020$(295.6)$1,080.3 $14.7 $1.2 $16.1 $(106.9)$709.8 
Change in accumulated other comprehensive income (loss) before reclassifications7.2 (207.1)0 0 (0.8)(0.3)(201.0)
Amounts reclassified from accumulated other comprehensive income (loss)0 (2.4)(0.6)0 0 (1.3)(4.3)
Net current-period other comprehensive income (loss)7.2 (209.5)(0.6)0 (0.8)(1.6)(205.3)
Balance at March 31, 2021$(288.4)$870.8 $14.1 $1.2 $15.3 $(108.5)$504.5 
 Three Months Ended March 31, 2020
 Foreign
currency
translation
adjustment		Net unrealized
gains on
investments		Net unrealized gains on derivative transactionsCredit related impairmentNon-credit related impairmentUnamortized net (losses) gains on Pension Plans (1)Accumulated
other
comprehensive
income
Balance at December 31, 2019$(358.9)$856.5 $17.1 $0 $15.5 $(118.7)$411.5 
Change in accumulated other comprehensive income (loss) before reclassifications(66.7)(297.3)0 0 (2.7)48.9 (317.8)
Amounts reclassified from accumulated other comprehensive income (loss)0 (4.8)(0.6)0 0 0.1 (5.3)
Net current-period other comprehensive income (loss)(66.7)(302.1)(0.6)0 (2.7)49.0 (323.1)
Balance at March 31, 2020$(425.6)$554.4 $16.5 $0 $12.8 $(69.7)$88.4 
(1)The Retirement Health Benefits plan was amended in February 2020, which resulted in a prior service credit recognized in other comprehensive income that will be recognized in income over the remaining period of the plan. Refer to Note 15 for additional information.
26
 Three Months Ended June 30, 2020
 
Foreign
currency
translation
adjustment
 
Net unrealized
gains on
investments
 Net unrealized gains on derivative transactions Non-Credit Related Impairment Unamortized net losses on Pension Plans 
Accumulated
other
comprehensive
income
Balance at March 31, 2020$(425.6) $554.4
 $16.5
 $12.8
 $(69.7) $88.4
Change in accumulated other comprehensive income (loss) before reclassifications26.9
 432.6
 —
 1.5
 —
 461.0
Amounts reclassified from accumulated other comprehensive income (loss)19.7
 2.1
 (0.6) —
 (1.7) 19.5
Net current-period other comprehensive income (loss)46.6
 434.7
 (0.6) 1.5
 (1.7) 480.5
Balance at June 30, 2020$(379.0) $989.1
 $15.9
 $14.3
 $(71.4) $568.9
            
 Three Months Ended June 30, 2019
 
Foreign
currency
translation
adjustment
 
Net unrealized
gains on
investments
 Net unrealized gains on derivative transactions Non-Credit Related Impairment Unamortized net (losses) gains on Pension Plans 
Accumulated
other
comprehensive
income
Balance at March 31, 2019$(365.4) $549.9
 $18.1
 $14.9
 $(114.1) $103.4
Change in accumulated other comprehensive (loss) income before reclassifications(1.2) 233.1
 (2.3) 0.7
 —
 230.3
Amounts reclassified from accumulated other comprehensive (loss) income—
 (4.6) (0.6) —
 0.2
 (5.0)
Net current-period other comprehensive (loss) income(1.2) 228.5
 (2.9) 0.7
 0.2
 225.3
Balance at June 30, 2019$(366.6) $778.4
 $15.2
 $15.6
 $(113.9) $328.7
            
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




 Six Months Ended June 30, 2020
 
Foreign
currency
translation
adjustment
 
Net unrealized
gains on
securities
 Net unrealized gains on derivative transactions Non-Credit Related Impairment Unamortized net (losses) on Pension Plans (1) 
Accumulated
other
comprehensive
income
Balance at December 31, 2019$(358.9) $856.5
 $17.1
 $15.5
 $(118.7) $411.5
Change in accumulated other
  comprehensive (loss) income
  before reclassifications
(39.8) 135.3
 —
 (1.2) 48.9
 143.2
Amounts reclassified from
  accumulated other comprehensive
  (loss) income
19.7
 (2.7) (1.2) —
 (1.6) 14.2
Net current-period other
  comprehensive (loss) income
(20.1) 132.6
 (1.2) (1.2) 47.3
 157.4
Balance at June 30, 2020$(379.0) $989.1
 $15.9
 $14.3
 $(71.4) $568.9
            
 Six Months Ended June 30, 2019
 
Foreign
currency
translation
adjustment
 
Net unrealized
gains on
securities
 Net unrealized gains on derivative transactions Non-Credit Related Impairment Unamortized net (losses) on Pension Plans 
Accumulated
other
comprehensive
income
Balance at December 31, 2018$(375.6) $301.0
 $18.4
 $15.1
 $(114.3) $(155.4)
Change in accumulated other
  comprehensive income (loss)
  before reclassifications
9.0
 480.4
 (2.0) 0.5
 —
 487.9
Amounts reclassified from
  accumulated other comprehensive
  income (loss)
—
 (3.0) (1.2) —
 0.4
 (3.8)
Net current-period other
  comprehensive income (loss)
9.0
 477.4
 (3.2) 0.5
 0.4
 484.1
Balance at June 30, 2019$(366.6) $778.4
 $15.2
 $15.6
 $(113.9) $328.7

(1)The Retirement Health Benefits plan was amended in February 2020, which resulted in a prior service credit recognized in other comprehensive income that will be recognized in income over the remaining period of the plan. Refer to Note 19 for additional information.
The following tables summarize the reclassifications out of AOCIaccumulated other comprehensive income (“AOCI”) for the periods indicated:
Details about accumulated other comprehensive income componentsAmount reclassified from
accumulated other
comprehensive income		Affected line item in the
statement where net
income is presented
 Three Months Ended March 31, 
 20212020 
Net unrealized (gains) losses on investments$(3.1)$(6.1)Net realized gains (losses) on investments
0.7 1.3 Provision for income taxes
$(2.4)$(4.8)Net of tax
Net unrealized gains on derivative transactions$(0.7)$(0.7)Interest expense
0.1 0.1 Provision for income taxes
$(0.6)$(0.6)Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:
Amortization of net loss$1.8 $1.3 (1)
Amortization of prior service credit(3.4)(1.1)(1)
(1.6)0.2 
0.3 (0.1)Provision for income taxes
$(1.3)$0.1 Net of tax
Total reclassifications for the period$(4.3)$(5.3)Net of tax
(1)These AOCI components are included in the computation of net periodic pension cost. See Note 15 for additional information.


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,  
  2020 2019  
Net unrealized losses (gains) on investments $2.7
 $(5.9) Net realized gains (losses) on investments
  (0.6) 1.3
 Provision for income taxes
  $2.1
 $(4.6) Net of tax
Net unrealized gains on derivative transactions $(0.7) $(0.8) Interest expense
  0.1
 0.2
 Provision for income taxes
  $(0.6) $(0.6) Net of tax
Foreign currency translation adjustment $19.7
 $—
 Iké net losses (see Note 5)
  —
 —
 Provision for income taxes
  $19.7
 $—
 Net of tax
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




Amortization of pension and postretirement unrecognized net periodic benefit cost:      
Amortization of net loss $1.2
 $0.3
 (1)
Amortization of prior service credit (3.4) —
 (1)
  (2.2) 0.3
  
  0.5
 (0.1) Provision for income taxes
  $(1.7) $0.2
 Net of tax
Total reclassifications for the period $19.5
 $(5.0) Net of tax
       
Details about accumulated other comprehensive income components 
Amount reclassified from
accumulated other
comprehensive income
 
Affected line item in the
statement where net
income is presented
  Six Months Ended June 30,  
  2020 2019  
Net unrealized gains on investments $(3.4) $(3.8) Net realized gains (losses) on investments
  0.7
 0.8
 Provision for income taxes
  $(2.7) $(3.0) Net of tax
Net unrealized gains on derivative transactions $(1.5) $(1.5) Interest expense
  0.3
 0.3
 Provision for income taxes
  $(1.2) $(1.2) Net of tax
Foreign currency translation adjustment $19.7
 $—
 Iké net losses (see Note 5)
  —
 —
 Provision for income taxes
  $19.7
 $—
 Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:      
Amortization of net loss $2.5
 $0.6
 (1)
Amortization of prior service credit (4.5) —
 (1)
  (2.0) 0.6
  
  0.4
 (0.2) Provision for income taxes
  $(1.6) $0.4
 Net of tax
Total reclassifications for the period $14.2
 $(3.8) Net of tax
(1)These AOCI components are included in the computation of net periodic pension cost. See Note 19 for additional information.

16.12. Stock Based Compensation
Under the Assurant, Inc. 2017 Long-Term Equity Incentive Plan (“ALTEIP”(the “ALTEIP”), as amended in May 2019, the Company is authorized to issue up to 1,588,797 new shares of the Company’s common stock to employees, officers and non-employee directors. Under the ALTEIP, the Company may grant awards based on shares of its common stock, including stock options, stock appreciation rights, restricted stock (including performance shares), unrestricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”) and dividend equivalents. All share-based grants are awarded under the ALTEIP.
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




Restricted Stock Units
The following table shows a summary of RSU activity during the three and six months ended June 30, 2020March 31, 2021 and 2019:2020:
 Three Months Ended June 30, Six Months Ended June 30,
 2020 2019 2020 2019
RSU compensation expense$7.3
 $7.4
 $13.6
 $14.4
Income tax benefit(1.3) (1.4) (2.4) (2.7)
RSU compensation expense, net of tax$6.0
 $6.0
 $11.2
 $11.7
RSUs granted33,538
 31,554
 261,950
 225,396
Weighted average grant date fair value per unit$100.62
 $96.18
 $90.99
 $97.56
Total fair value of vested RSUs$15.5
 $5.0
 $24.4
 $26.8

Three Months Ended March 31,
20212020
RSU compensation expense$6.6 $6.3 
Income tax benefit(1.2)(1.1)
RSU compensation expense, net of tax$5.4 $5.2 
RSUs granted168,595 228,412 
Weighted average grant date fair value per unit$137.18 $89.58 
Total fair value of vested RSUs$30.0 $8.9 
As of June 30, 2020,March 31, 2021, there was $29.8$37.0 million of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.31.4 years.
27
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)



Performance Share Units
The following table shows a summary of PSU activity during the three and six months ended June 30, 2020March 31, 2021 and 2019:2020:
 Three Months Ended June 30, Six Months Ended June 30,
 2020 2019 2020 2019
PSU compensation expense$7.3
 $6.6
 $12.1
 $10.8
Income tax benefit(0.8) (0.9) (1.3) (1.5)
PSU compensation expense, net of tax$6.5
 $5.7
 $10.8
 $9.3
PSUs granted—
 —
 302,274
 246,219
Weighted average grant date fair value per unit$—
 $—
 $87.36
 $105.23
Total fair value of vested PSUs$—
 $—
 $24.4
 $17.7

Three Months Ended March 31,
20212020
PSU compensation expense$6.2 $4.8 
Income tax benefit(0.6)(0.5)
PSU compensation expense, net of tax$5.6 $4.3 
PSUs granted201,462 302,274 
Weighted average grant date fair value per unit$147.32 $87.36 
Total fair value of vested PSUs$22.5 $24.4 
As of June 30, 2020,March 31, 2021, there was $36.1$42.3 million of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 0.91.2 years. 
The fair value of PSUs with market conditions was estimated as of the date of grant using a Monte Carlo simulation model, which utilizes multiple variables that determine the probability of satisfying the market condition stipulated in the award. Expected volatilities for awards issued during the sixthree months ended June 30,March 31, 2021 and 2020 and 2019 were based on the historical stock prices of the Company’s stock and peer group. The expected term for grants issued during the sixthree months ended June 30,March 31, 2021 and 2020 and 2019 was assumed to equal the average of the vesting period of the PSUs. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant.

17.13. Equity Transactions
Stock Repurchase
During the sixthree months ended June 30,March 31, 2021 and 2020, and 2019, the Company repurchased 734,967308,000 and 1,037,262480,967 shares of the Company’s outstanding common stock at a cost of $83.1$41.5 million and $100.7$57.3 million, exclusive of commissions, respectively, leaving $403.2$745.0 million aggregate cost at purchase remaining unused under the totalexisting repurchase authorizationauthorizations as of June 30, 2020.March 31, 2021.
The timing and the amount of future repurchases will depend on market conditions, the Company’s financial condition, results of operations and liquidity and other factors.
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




Issuance of Mandatory Convertible Preferred Stock (“MCPS”)
In March 2018, the Company issued 2,875,000 shares of the MCPS, with a par value of $1.00 per share, at a public offering price of $100.00 per share. The net proceeds from the sale of the MCPS was $276.4 million after deducting the underwriting discounts and offering expenses.
Each outstanding share of MCPS will convert automatically onconverted in March 15, 2021 into between 0.9385 (the “minimum conversion rate”) and 1.1262 shares0.9405 of common shares, or 2,703,911 common shares in total plus an immaterial amount of cash in lieu of fractional shares. The Company used a portion of its treasury stock subjectfor the common shares, using the average cost method to customary anti-dilution adjustments. At any time prior to March 2021, holders may elect to convert each shareaccount for the reissuance of MCPS into shares of common stock at the minimum conversion rate or in the event of a fundamental change at the specified rates as defined in the Certificate of Designations of the MCPS.such shares.
Dividends on ourthe MCPS will bewere payable on a cumulative basis when, as and if declared, at an annual rate of 6.50% of the liquidation preference of $100.00 per share. The Company may pay declared dividends in cash or, subject to certain limitations, in shares of the Company’s common stock, or in any combination of cash and shares of the Company’s common stock quarterly, commencing in June 2018 and ending in March 2021. No dividend or distribution may be declared or paid on common stock or any other class or series of junior stock, and no common stock or any other class or series of junior stock or parity stock may be purchased, redeemed or otherwise acquired for consideration unless all accumulated and unpaid dividends on the MCPS for all preceding dividend periods have been declared and paid in full, subject to certain limited exceptions. The Company paid preferred stock dividends of $4.6$4.7 million forin each of the three months ended June 30, 2020March 31, 2021 and 2019. The Company paid preferred stock dividends of $9.3 million for the six months ended June 30, 2020 and 2019.2020.

18.14. Earnings Per Common Share
The following table presents net income, the weighted average common shares used in calculating basic EPS and those used in calculating diluted EPS for each period presented below. Diluted EPS reflects the incremental common shares from: (1) common shares issuable upon vesting of PSUs and ESPPthe purchase of shares under the Employee Stock Purchase Plan (the “ESPP”) using the treasury stock method; and (2) common shares issuable upon the conversion of the MCPS using the if-converted method. Refer to Notes 1612 and 1713 for further information regarding potential common stock issuances. The
28
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)



outstanding 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.
 Three Months Ended March 31,
 20212020
Numerator
Net income from continuing operations$148.5 $148.6 
Less: Net loss (income) attributable to non-controlling interest0.2 (1.1)
Net income from continuing operations attributable to stockholders148.7 147.5 
Less: Preferred stock dividends(4.7)(4.7)
Net income from continuing operations attributable to common stockholders144.0 142.8 
Less: Common stock dividends paid(38.2)(38.0)
Undistributed earnings$105.8 $104.8 
Net income from continuing operations attributable to common stockholders$144.0 $142.8 
Add: Net income from discontinued operations14.3 7.2 
Net income attributable to common stockholders$158.3 $150.0 
Denominator
Weighted average common shares outstanding used in basic per common share calculations59,192,880 60,602,911 
Incremental common shares from:
PSUs367,274 322,692 
ESPP0 5,148 
MCPS2,223,238 2,696,175 
Weighted average common shares outstanding used in diluted per common share calculations61,783,392 63,626,926 
Earnings per common share - Basic
Distributed earnings$0.64 $0.63 
Undistributed earnings1.79 1.73 
Net income from continuing operations2.43 2.36 
Net income from discontinued operations0.24 0.12 
Net income attributable to common stockholders$2.67 $2.48 
Earnings per common share - Diluted
Distributed earnings$0.62 $0.60 
Undistributed earnings1.79 1.72 
Net income from continuing operations2.41 2.32 
Net income from discontinued operations0.23 0.11 
Net income attributable to common stockholders$2.64 $2.43 
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,
 2020 2019 2020 2019
Numerator       
Net income attributable to stockholders$178.1
 $144.1
 $332.8
 $309.8
Less: Preferred stock dividends(4.6) (4.6) (9.3) (9.3)
Net income attributable to common stockholders173.5
 139.5
 323.5
 300.5
Less: Common stock dividends paid(39.6) (38.3) (77.6) (75.7)
Undistributed earnings$133.9
 $101.2
 $245.9
 $224.8
Denominator       
Weighted average common shares outstanding used in basic earnings per common share calculations60,363,577
 62,222,090
 60,483,244
 62,407,429
Incremental common shares from:       
PSUs164,530
 114,502
 250,048
 172,321
ESPP41,832
 42,642
 41,832
 42,642
MCPS2,777,250
 2,909,213
 2,698,188
 2,938,538
Weighted average common shares used in diluted earnings per common share calculations63,347,189
 65,288,447
 63,473,312
 65,560,930
Earnings per common share - Basic       
Distributed earnings$0.66
 $0.62
 $1.28
 $1.21
Undistributed earnings2.21
 1.62
 4.07
 3.61
Net income attributable to common stockholders$2.87
 $2.24
 $5.35
 $4.82
Earnings per common share - Diluted       
Distributed earnings$0.63
 $0.59
 $1.22
 $1.16
Undistributed earnings2.18
 1.62
 4.02
 3.57
Net income attributable to common stockholders$2.81
 $2.21
 $5.24
 $4.73
There were 0 anti-dilutive averageAverage PSUs totaling 18,373 for the three and six months ended June 30, 2020. Average PSUs totaling 95,899 and 137,588 for the three and six months ended June 30, 2019, respectively,March 31, 2021 were anti-dilutive and thus not included in the computation of diluted EPS under the treasury stock method. There were 0 anti-dilutive PSUs for the three months ended March 31, 2020.

19.15. Retirement and Other Employee Benefits
The Company and its subsidiaries participate in a non-contributory, qualified defined benefit pension plan (“Assurant Pension Plan”) covering substantially all employees.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
29
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)



Pension Plan and the Assurant Supplemental Executive Retirement Plan. The qualified and non-qualified plans are referred to as “Pension Benefits” unless otherwise noted. In addition, the Company provides certain life and health care benefits (“Retirement Health Benefits”) for retired employees and their dependents. The Pension Benefits and Retirement Health Benefits (together, the “Plans”) were frozen on March 1, 2016.
In February 2020, the Company amended the Retirement Health Benefits to terminate effective December 31, 2024 (the “Termination Date”). Benefits will be paid up to the Termination Date. The Retirement Health Benefits obligations were re-measured using a discount rate of 1.55%, selected based on a cash flow analysis using a bond yield curve as of February 29, 2020, and the fair market value of the Retirement Health Benefits assets as of February 29, 2020. The remeasurement resulted in a reduction to the Retirement Health Benefits obligations of $65.6 million and a corresponding prior service credit in AOCI, which will be reclassified from AOCI as it is amortized in the net periodic benefit cost over the remaining period until the Termination Date.
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




The following tables present the components of net periodic benefit cost for the Plans for the three and six months ended June 30, 2020March 31, 2021 and 2019:2020: 
 Qualified Pension BenefitsUnfunded Non-qualified 
Pension Benefits		Retirement Health
Benefits
 For the Three Months Ended March 31,For the Three Months Ended March 31,For the Three Months Ended March 31,
 202120202021202020212020
Interest cost$3.5 $5.1 $0.3 $0.5 $0 $0.4 
Expected return on plan assets(6.9)(7.7)0 0 (0.4)(0.4)
Amortization of prior service credit0 0 0 0 (3.4)(1.1)
Amortization of net loss (gain)1.2 0.7 0.8 0.6 (0.1)0 
Net periodic benefit cost$(2.2)$(1.9)$1.1 $1.1 $(3.9)$(1.1)
 Qualified Pension Benefits 
Unfunded Non-qualified 
Pension Benefits
 
Retirement Health
Benefits
 For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30,
 2020 2019 2020 2019 2020 2019
Interest cost$5.1
 $6.6
 $0.5
 $0.7
 $0.1
 $0.9
Expected return on plan assets(7.7) (9.0) —
 —
 (0.1) (0.5)
Amortization of prior service credit—
 —
 —
 —
 (3.4) —
Amortization of net loss0.7
 —
 0.5
 0.3
 —
 —
Net periodic benefit cost$(1.9) $(2.4) $1.0
 $1.0
 $(3.4) $0.4
            
 Qualified Pension Benefits 
Unfunded Nonqualified 
Pension Benefits
 
Retirement Health
Benefits
 For the Six Months Ended June 30, For the Six Months Ended June 30, For the Six Months Ended June 30,
 2020 2019 2020 2019 2020 2019
Interest cost$10.2
 $13.1
 $1.0
 $1.4
 $0.5
 $1.8
Expected return on plan assets(15.4) (18.0) —
 —
 (0.5) (0.9)
Amortization of prior service credit—
 —
 —
 —
 (4.5) —
Amortization of net loss (gain)1.4
 —
 1.1
 0.6
 —
 —
Net periodic benefit cost$(3.8) $(4.9) $2.1
 $2.0
 $(4.5) $0.9
 
The Assurant Pension Plan funded status was $53.9$45.8 million at June 30, 2020March 31, 2021 and $66.4$43.2 million at December 31, 20192020 (based on the fair value of the assets compared to the accumulated benefit obligation). This equates to a 107%106% and 109%105% funded status at June 30, 2020March 31, 2021 and December 31, 2019,2020, respectively. During the sixthree months ended June 30, 2020,March 31, 2021, 0 cash was contributed to the Assurant Pension Plan. Due to the Assurant Pension Plan’s current funded status, 0 additional cash is expected to be contributed to the Assurant Pension Plan over the remainder of 2020.2021.

20.16. Commitments and Contingencies
Letters of Credit
In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which the Company is the reinsurer. These letters of credit are supported by commitments under which the Company is required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. The Company had $12.1$7.2 million and $7.6 million of letters of credit outstanding as of June 30, 2020March 31, 2021 and December 31, 2019.2020, 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. In particular, the Company is a defendant in class actions in a number of jurisdictions regarding its Lender-placed Insurance programs. These cases assert a variety of claims under a number of legal theories. The plaintiffs typically seek premium refunds and other relief. The Company continues to defend itself vigorously in these class actions.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
Assurant, Inc.
Notes to Consolidated Financial Statements (unaudited)
(in millions, except number of shares and per share amounts)




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
30
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.
Risks and Uncertainties
The Company is actively monitoring developments related to the COVID-19 pandemic to assess the ongoing impacts on its business, results of operations and financial condition. While continuing to evolve, the COVID-19 pandemic has caused significant global economic and financial market disruption, resulting in increased financial market volatility, business and operational challenges such as the temporary closures of businesses, and overall diminished expectations for the economy and the financial markets.
31
At this time, it is not possible to estimate how long it will take to halt the spread of the virus or the long-term effects that the COVID-19 pandemic could have on the economy or the Company’s business.  The extent to which the COVID-19 pandemic impacts the Company’s business, results of operations or financial condition, including demand for the Company’s products and services and the value of the Company’s investment portfolio and other tangible or intangible assets, among other impacts, will depend on future developments which are highly uncertain and difficult to predict. These include the severity and duration of the pandemic and the actions taken by government authorities and other third parties to contain or address its impact. Even after the COVID-19 outbreak has subsided, the Company may experience or continue to experience materially adverse impacts to its business as a result of the pandemic’s global economic impact.

21. Subsequent Events
Sale of CLO Asset Management Platform
In July 2020, the Company sold its CLO asset management platform for $20.0 million in cash consideration. Prior to the sale, the CLOs were VIEs that the Company consolidated, as described in Note 11. The Company retained its direct investments in the CLOs following the sale, but it expects to deconsolidate the CLOs in third quarter 2020 since it no longer acts as collateral manager and, as a result, no longer has the power to control the CLO entities.
Receipt of CARES Act refund
As referenced in Note 7, the Company filed a refund claim for $198.4 million related to the ability to carryback net operating losses to prior periods under the CARES Act. The Company received the full amount of the refund plus interest in July 2020.
Repayment of Credit Facility
As referenced in Note 14, the Company borrowed $200.0 million under its Credit Facility on March 27, 2020 as a precautionary measure to strengthen its liquidity position and capital flexibility due to the uncertainty caused by the COVID-19 pandemic. The Company repaid the full $200.0 million loan on July 29, 2020.




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, 20192020 and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 20192020 (the “2019“2020 Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited consolidated financial statements for the three and six months ended June 30, 2020March 31, 2021 and accompanying notes (the “Consolidated Financial Statements”) included elsewhere in this Quarterly Report on Form 10-Q (this “Report”).
Some of the statements included in this MD&A and elsewhere in this Report, particularly those anticipatingwith respect to the closing of the Global Preneed transaction, including our financial plans and any statements regarding our anticipated future financial performance, business prospects, growth and operating strategies and similar matters, are 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 “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 the COVID-19 pandemic, including the scope and duration of the outbreak, government actions and restrictive measures taken in response, and its effect on the global economic and financial markets;
(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 those parties facing financial, reputational or regulatory issues;
(iii)significant competitive pressures, changes in customer preferences and disruption;
(iv)the failure to find suitable acquisitions, integrate completed acquisitions or grow organically, and risks associated with joint ventures and franchise ownership and operations;
(v)the impact of general economic, financial market and political conditions, including unfavorable conditions in the capital and credit markets and in the markets in which we operate, including as a result of COVID-19;
(vi)risks related to our international operations, including the United Kingdom’s withdrawal from the European Union, or fluctuations in exchange rates;
(vii)the impact of catastrophic and non-catastrophe losses, including as a result of climate change;
(viii)our inability to recover should we experience a business continuity event, including as a result of COVID-19;
(ix)our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;
(x)the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;
(xi)declines in the value of mobile devices, the risk of guaranteed buybacks or export compliance risk in our mobile business;
(xii)negative publicity relating to our products and services or the markets in which we operate;
(xiii)the failure to implement our strategy and to attract and retain key personnel, including senior management;
(xiv)employee misconduct;
(xv)the adequacy of reserves established for claims and our inability to accurately predict and price for claims;
(xvi)a decline in financial strength ratings or corporate senior debt ratings;

(i)the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues;
(xvii)an impairment of goodwill or other intangible assets;
(xviii)the failure to maintain effective internal control over financial reporting;
(xix)a decrease in the value of our investment portfolio, including due to market, credit and liquidity risks, changes in interest rates and COVID-19;
(xx)the impact of U.S. tax reform legislation and impairment of deferred tax assets;
(xxi)the unavailability or inadequacy of reinsurance coverage and the credit risk of reinsurers, including those to whom we have sold business through reinsurance;
(xxii)the credit risk of some of our agents, third-party administrators and clients;
(xxiii)the inability of our subsidiaries to pay sufficient dividends to the holding company and limitations on our ability to declare and pay dividends, including as a result of COVID-19;
(xxiv)changes in the method for determining LIBOR or the replacement of LIBOR;
(xxv)the failure to effectively maintain and modernize our information technology systems and infrastructure, or the failure to integrate those of acquired businesses;
(xxvi)breaches of our information systems or those of third parties with whom we do business, or the failure to protect data in such systems, including due to cyber-attacks and as a result of working remotely during the COVID-19 pandemic;
(xxvii)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 and data protection;
(xxviii)the impact from litigation and regulatory actions, including those arising from COVID-19;
(xxix)reductions or deferrals in the insurance premiums we charge, including as a result of COVID-19; and
(xxx)changes in insurance and other regulation, including to mitigate the impact of COVID-19.
(ii)    significant competitive pressures, changes in customer preferences and disruption;
(iii)    the failure to implement our strategy and to attract and retain key personnel, including key executives and senior management;
(iv)    the failure to find suitable acquisitions at attractive prices, integrate acquired businesses effectively or grow organically;
(v)    our inability to recover should we experience a business continuity event;
(vi)    the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;
(vii)    risks related to our international operations;
(viii)    declines in the value of mobile devices, the risk of guaranteed buybacks, or export compliance or other risks in our mobile business;
(ix)    our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;
(x)    risks associated with joint ventures, franchises and investments in which we share ownership and management with third parties;
(xi)    negative publicity relating to our business or industry;
(xii)    the impact of general economic, financial market and political conditions and conditions in the markets in which we operate;
(xiii)    the impact of the COVID-19 pandemic and measures taken in response thereto;
(xiv)    the impact of catastrophic and non-catastrophe losses, including as a result of climate change;
(xv)    the adequacy of reserves established for claims and our inability to accurately predict and price for claims;
(xvi)    a decline in financial strength ratings of our insurance subsidiaries or in our corporate senior debt ratings;
32

(xvii)    fluctuations in exchange rates;
(xviii)    an impairment of goodwill or other intangible assets;
(xix)    the failure to maintain effective internal control over financial reporting;
(xx)    unfavorable conditions in the capital and credit markets;
(xxi)    a decrease in the value of our investment portfolio, including due to market, credit and liquidity risks, and changes in interest rates;
(xxii)    impairment of our deferred tax assets;
(xxiii)    the unavailability or inadequacy of reinsurance coverage and the credit risk of reinsurers, including those to whom we have sold business through reinsurance;
(xxiv)    the credit risk of some of our agents, third-party administrators and clients;
(xxv)    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;
(xxvi)    the failure to effectively maintain and modernize our information technology systems and infrastructure, or the failure to integrate those of acquired businesses;
(xxvii)    breaches of our information 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 cyber-attacks and as a result of working remotely;
(xxviii)    the costs of complying with, or the failure to comply with, extensive laws and regulations to which we are subject, including those related to privacy, data security, data protection or tax;
(xxix)    the impact of litigation and regulatory actions;
(xxx)    reductions or deferrals in the insurance premiums we charge;
(xxxi)    changes in insurance, tax and other regulation;
(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 20192020 Annual Report, and “Item 1A—Risk Factors” below and in our 20192020 Annual Report.
General
Global Preneed Discontinued Operations
In March 2021, we entered into a definitive agreement to sell the legal entities which comprise the businesses previously reported as the Global Preneed segment and certain businesses previously disposed of through reinsurance, which were previously reported in the Corporate and Other segment (collectively, the “disposal business”) to CUNA Mutual Group (“CUNA”) for total cash consideration of $1.25 billion, subject to certain purchase price adjustments at closing. The transaction is expected to close by the end of the third quarter of 2021, subject to regulatory approvals and other customary closing conditions.
The estimated carrying value of the disposal business is subject to adjustment in future quarters until closing, and may be influenced by various factors including the following:
•The performance of the disposal business, including the impact of discount, interest, mortality and reinsurance rates; and
•Changes in the terms of the agreement with CUNA, including as a result of any subsequent negotiations, any necessary changes to obtain regulatory approval or any changes due to unanticipated developments.
We have determined that the disposal business meets the criteria to be classified as held for sale and that the sale represents a strategic shift that will have a major impact on our operations and financial results. Accordingly, the results of operations of the disposal business are presented as net income from discontinued operations in the consolidated statements of
33

operations and segregated in the consolidated statement of cash flows for all periods presented and the assets and liabilities for the disposal business have been classified as held for sale and segregated for all periods presented in the consolidated balance sheets. Transactions between the disposal business and businesses in our continuing operations are not eliminated to appropriately reflect the continuing operations and the assets, liabilities and results of the disposal business. Refer to “—Results of Operations—Discontinued Operations” below and Note 4 to the Consolidated Financial Statements included elsewhere in this Report.
Reportable Segments
As of June 30, 2020,March 31, 2021, the Company had fourthree reportable segments, excluding discontinued operations described above, which are defined based on the manner in which the Company’s chief operating decision maker, our Chief Executive Officer (“CEO”), reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered:
•Global Lifestyle: provides mobile device solutions and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance products (referred to as “Global Financial Services and Other”);
•Global Housing: provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”); and
Global Preneed: provides pre-funded funeral insurance, final need insurance and related services; and
•Corporate and Other: includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), interest income earned from short-term investments held, income (expenses) primarily related to the Company’s frozen benefit plans, amounts related to businesses previously disposed of through reinsurance and the run-off of the Assurant Health business. Corporate and Other also includes goodwill impairments, the foreign currency gains (losses) from remeasurement of monetary assets and liabilities, changes in the fair value of derivative instruments and other expenses related to merger and acquisition activities, as well as other highly variable or unusual items other than reportable catastrophes (reportable catastrophe losses, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums).
The following discussion covers the three and six months ended June 30, 2020March 31, 2021 (“SecondFirst Quarter 2020” and “Six Months 2020”2021”) and the three and six months ended June 30, 2019 (“Second Quarter 2019” and “Six Months 2019”).

Executive Summary
COVID-19
While continuing to evolve, the COVID-19 pandemic has caused significant global economic and financial market disruption, resulting in increased financial market volatility, business and operational challenges such as the temporary closures of businesses, and overall diminished expectations for the economy and the financial markets.
Toward the end of the three months ended March 31, 2020 (“First Quarter 2020”) and into Second Quarter 2020, the pandemic impacted each of our operating segments and may continue to impact our businesses if similar conditions continue to persist or worsen. Overall, in Second Quarter 2020, we believe COVID-19 had a modest negative impact on our.
Executive Summary
Consolidated net income mainly due to $15.2from continuing operations was relatively flat at $148.5 million of after-tax direct and incremental expenses, primarily related to employee benefits described below, partially offset by lower claims frequency in some of our businesses. In addition, while we continue to see lower investment income from lower yields, the improvement of the financial markets in the Second Quarter 2020 benefitted our results when compared tofor First Quarter 2020. While the COVID-19 impact on net income2021 from $148.6 million for First Quarter 2020, included $76.1as the absence of a $79.3 million of after-tax net unrealized investment losses from our investmentsone-time tax benefit in equity securities and direct investments in collateralized loan obligations, we recorded $28.8 million of after-tax net unrealized investment gains from these securities in SecondFirst Quarter 2020. Our investment portfolio will continue to be impacted by COVID-19 and related financial market volatility. Though we generally believe our portfolio remains well diversified and high-quality, with the majority comprised of investment grade fixed maturity assets, interest rates are expected to remain relatively low for the foreseeable future. Refer to “—Investments” below and Note 10 to the Consolidated Financial Statements included elsewhere in this Report.
Our Response to COVID-19
As a global organization, we actively monitor the developments of the continuously evolving situation resulting from COVID-19. Throughout this period of uncertainty, we have acted swiftly and deliberately to safeguard our employees, to maintain business operations and service levels for our customers, and to support our local communities. Since implementing restrictions on non-essential business travel and transitioning the vast majority of our workforce to work-from-home, we have approved a limited return to office within certain Asian and European locations, as well as limited, essential business travel. For those employees who need to work in our offices or global facilities, we’ve maintained safety and hygiene protocols, such as social distancing, mandatory use of personal protection equipment and regular cleaning and disinfecting of our locations. To support our employees, we have implemented additional floating holidays, a one-time COVID-19 relief payment for eligible work-from-home employees and incentive bonuses for eligible on-site employees, as well as increased well-being and mental health support services. We offered financial support through a special COVID-19 Emergency Relief Program to eligible employees who experienced severe financial hardship caused by the pandemic. We also have been active in maintaining our support within our local communities through charitable contributions.
Evaluation of Business Trends, Capital and Liquidity
We have run multiple scenarios based on the potential duration and severity of this crisis to better understand how our business might perform and stress-tested our capital, cash flows and liquidity. Our business has performed on the high-end of the scenarios, demonstrating its overall resilience. We could experience a greater negative impact to our business as a result of financial market volatility, prolonged government lockdown measures impacting access to distribution channels and related changes to consumer behavior from a resurgence of COVID-19 cases.
While in late March and through April, our businesses experienced a reduction in new sales across our Multifamily Housing and Global Automotive lines of business, as well as Global Preneed, these trends have generally reversed through July, though most are still lower when compared to 2019. Our mobile business experienced lower trade-in activity and slower sales growth, which also improved through July combined with higher average selling prices in Second Quarter 2020 due to lower inventory. We believe we have benefitted from our installed customer base across Connected Living, Global Automotive, Multifamily Housing and Global Preneed. We have also extended options, for a period of time, such as extended grace periods for premium payments and waiving of late payment fees for policyholders experiencing financial hardship as a result of COVID-19 and are monitoring cancellations across our product lines.
Second Quarter 2020 Global Lifestyle results were impacted by COVID-19 factors, including more favorable international claims activity in Connected Living and Global Automotive, partially offset by weaker performance in Global Financial Services and lower mobile trade-in volumes when compared to 2019. For mobile, we expect fluctuation in new subscriber growth and trade-in volumes, reflecting store closures and carrier activity, with volumes continuing to recover if stores remain open. In Global Automotive, as some states are experiencing a resurgence of COVID-19, we expect sales volumes will also fluctuate. We believe a reduction in sales would impact the business longer term, while unearned premium continues to contribute in the shorter term. We expect claims activity in Connected Living and Global Automotive will

normalize in the second half of 2020, depending on the reopening of the economy. We would also expect investment income to be impacted from lower investment yields coming from new business. Throughout Global Lifestyle, we may also continue to see adverse fluctuations in foreign exchange.
Second Quarter 2020 Global Housing results were impacted by COVID-19-related factors, including lower claims frequency across our Lender-placed Insurance, Multifamily housing and Specialty and Other businesses, partially offset by lower real estate owned (“REO”) volumes in Lender-placed Insurance. For Multifamily Housing, we have experienced a recovery in new renter policies. For Lender-placed Insurance, we will continue to monitor the state of the overall housing market and the potential impact of the current mortgage moratorium, including lower new policy placement and REO volumes. This was offset by lower claim frequencies, which we also expecthigher net realized gains on investments compared to increasenet realized losses in the second half of 2020. Should the housing market deteriorate for a prolonged period, we would expect a longer-term increase in our placement rates after 2020. Lastly, our small commercial business continues to run-off and we continue to monitor regulatory actions regarding business interruption coverage, though our policies generally include virus exclusions. We would also expect investment income to be impacted from lower investment yields coming from the investment of premiums resulting from new business.
For Global Preneed, sales have rebounded from April levels but began to slow down in July as states where we have a concentrated footprint, such as California, Texas and South Carolina, are experiencing high levels of infections. We are also monitoring mortality trends, which have been modestly elevated, with a risk for additional increase given our policy footprint. We expect longer term results to be impacted from lower yields on new sales due to the current interest rate environment, given the average duration of our investment portfolio.
We continue to take actions to mitigate potential impacts, including deferring certain discretionary expenses and delaying the fulfillment of open positions in support functions, though we expect to see increased spending in these items in the second half of 2020, as well as in investments that had been deferred.
Throughout this period, we believe our liquidity has remained strong. As of June 30, 2020, we had $357.4 million of holding company liquidity. To strengthen our liquidity position and capital flexibility during a period of uncertainty, we drew $200.0 million under our revolving credit facility in March 2020. Given our performance year-to-date and improved visibility into the ongoing impacts of COVID-19 on our business, we fully repaid the loan in July 2020.
For a discussion of the material risks relating to COVID-19 on our business, results of operations and financial condition, refer to the risk factor disclosed in Item 8.01 of our Current Report on Form 8-K filed on May 5, 2020 and “Item 1A—Risk Factors—The value of our deferred tax assets could become impaired, which could materially and adversely affect our results of operations and financial condition” in our 2019 Annual Report.
Iké
In May 2020, we sold our minority interests in Iké Grupo, Iké Asistencia and certain of their affiliates (collectively, “Iké”), terminated our obligations to purchase the remaining shares of Iké, and settled a financial derivative that provided an economic hedge against declines in the Mexican Peso relative to the U.S. Dollar. These transactions resulted in net cash outflows of $85.3 million, which included financing of $34.0 million, the proceeds from the settlement of the derivative and transaction expenses. For additional information on this transaction, see “—Liquidity and Capital Resources” below and Note 5 to the Consolidated Financial Statements included elsewhere in this Report.
American Financial & Automotive Services
On May 1, 2020, we completed our acquisition of American Financial & Automotive Services, Inc. (“AFAS”), a provider of finance and insurance products and services including vehicle service contracts, guaranteed asset protection insurance and other ancillary products sold directly through a network of nearly 600 franchised dealership clients across 40 states, for total consideration of $176.9 million. See Note 4 to the Consolidated Financial Statements included elsewhere in this Report.
Catastrophe Reinsurance Program
In June 2020, we finalized our 2020 property catastrophe reinsurance program. The U.S. per-event catastrophe coverage provides $930.0 million of protection in excess of $80.0 million of retention per event. The coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best. See “Catastrophe Reinsurance Program” below.
Summary of Financial Results
Consolidated net income attributable to common stockholders increased $34.0 million, or 24%, to $173.5 million for Second Quarter 2020 compared with net income attributable to common stockholders of $139.5 million for Second Quarter

2019, primarily due to improved profitability from Global Housing and continued mobile growth in Global Lifestyle. Additionally, Second Quarter 2019 included an $11.4 million after-tax impairment associated with a prior acquisition in Global Housing. These increases were partially offset by $15.2 million of after-tax direct and incremental operating expenses incurred due to the COVID-19 pandemic during SecondFirst Quarter 2020.
Global Lifestyle segment net income increased $12.5$8.2 million, or 11%7%, to $121.8$129.1 million for SecondFirst Quarter 20202021 from $109.3$120.9 million for SecondFirst Quarter 2019,2020, primarily driven by ourstrong results in Global Automotive, including a $4.3 million one-time benefit, as well as higher investment income and underlying global growth. Connected Living results also increased from mobile business due to continued subscriber growth in North America and Asia Pacific and North America, higher average selling prices on mobile trade-in devices. Our Global Automotive business also contributed to the increase, including a discrete client benefit. Bothvolumes and contributions from recent acquisitions. First Quarter 2020 included $11.7 million of one-time benefits within Connected Living and Global Automotive benefitted from lower claims activity mainly outside the U.S. due to COVID-19, while partially offset by higher claims frequency within Global Financial Services and Other.Automotive.
Global Lifestyle net earned premiums, fees and other income decreased $40.4$84.6 million, or 2%4%, to $1.77$1.86 billion for SecondFirst Quarter 2021 from $1.95 billion for First Quarter 2020, reflecting the impact from $1.81 billion for Second Quarter 2019, primarily from lowerthe previously disclosed mobile trade-in volumes due to global lockdown measures for COVID-19program contract change. Excluding this $98.0 million reduction, net earned premiums, fees and unfavorable foreign exchange. The decreaseother income was partially offset by growth in Connected Living, mainly from mobile subscriber growth from protection programs added over the past several years and prior period sales from our Global Automotive business.flat year-over-year.
Global Housing segment net income increased $13.9decreased $6.8 million, or 19%9%, to $85.4$67.4 million for SecondFirst Quarter 2021 from $74.2 million for First Quarter 2020, compared with $71.5 million for Second Quarter 2019. Segment net income for Second Quarter 2020 included $10.1driven by $21.7 million of higher reportable catastrophes mainly related toprimarily from the severe weather across the U.S., compared to $2.7 million of favorable development for Second Quarter 2019.winter storms in Texas. Excluding reportable catastrophes, segment net income increased $26.7$14.9 million, primarily due to favorable non-catastrophe loss experience, across all majormainly in Specialty and Other products driven by underwriting improvements and lower overall claims frequency, including the impacts of COVID-19, and previously implemented underwriting initiatives. Modestas well as growth across our Specialty and Other product lines and the absence of lossesin Multifamily Housing. Lender-placed Insurance also benefited from our small commercial product also contributedhigher premium rates, though lower real estate owned (“REO”) volumes, due to the increase.foreclosure moratoriums, offset results.
Global Housing net earned premiums, fees and other income decreased $21.2$7.4 million, or 4%1%, to $488.9$493.0 million for SecondFirst Quarter 20202021 from $510.1$500.4 million for SecondFirst Quarter 2019,2020, primarily due to the reductiondeclines in Lender-placed Insurance policies in-force from the previously disclosed financially insolvent clientSpecialty and lower REO volumes due to foreclosure moratoriums enacted in connection with COVID-19. TheOther products, including
34

the expected run-off offrom our small commercial product, also contributed to the decrease.as well as a modest decline in Lender-placed Insurance. The decrease was partially offset by growth in Specialty and Other products and in our Multifamily Housing business.
Global Preneed segment net income decreased $3.2 million, or 19%, to $13.7 million for Second Quarter 2020 from $16.9 million for Second Quarter 2019, primarily due to lower investment income from lower yields compared to a strong prior year period, as well as higher mortality, including impacts of COVID-19.
Global Preneed net earned premiums, fees and other income increased $0.7 million, or 1%, to $50.3 million for Second Quarter 2020 from $49.6 million for Second Quarter 2019, primarily driven by prior period sales of final need insurance and growth in pre-funded funeral policies.Housing.
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, and our ability to manage our expenses and achieve expense savings. Our results will also depend on our ability to profitably grow our businesses, in particular our Connected Living, Multifamily Housing and Global Automotive businesses, and maintainingmaintain our position in our Lender-placed Insurance business and the North American credit insurance business in Global Financial Services and Other.business. Factors affecting these items, including the impact of the COVID-19 pandemic and measures taken in response thereto, conditions in financial markets, the global economy and the markets in which we operate, fluctuations in exchange rates, interest rates and inflation, may have a material adverse effect on our results of operations or financial condition. For more information on these and other factors that could affect our results, including COVID-19 and measures taken in response thereto, see “Item 1A—Risk Factors”, below and in our 20192020 Annual Report, and “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Factors Affecting Results” in our 20192020 Annual Report and “—Executive Summary—COVID-19” and “—Executive Summary—Our Response to COVID-19,” above.

Report.
Our results may be impacted by our ability to continue to grow in the markets in which we operate and to maintain relationships with significant clients, distributors and other parties or renew contracts with them on favorable terms, including in our Connected Living, Multifamily Housing and Global Automotive businesses. Our mobile business is subject to volatility in mobile device trade-in volumes based on the actual and anticipated timing of the release of new devices and carrier promotional programs, as well as to changes in consumer preferences. Our Lender-placed Insurance revenues will also be impacted by changes in the housing market. In addition, across many of our businesses, we must respond to the threat of disruption. See “Item 1A—Risk Factors—Business, Strategic and CompetitiveOperational Risks—SignificantOur revenues and profits may decline if we are unable to maintain relationships with significant clients, distributors and other parties, or renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues” and “Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations” in our 20192020 Annual Report.
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 and preferred stock.
For the six months ended June 30, 2020,First Quarter 2021, net cash used in operating activities from continuing operations was $454.0 million; net cash provided by operatinginvesting activities from continuing operations was $292.2$63.2 million; and net cash used in investing activities was $32.2 million; and net cash provided by financing activities from continuing operations was $12.0$153.0 million. We had $2.14$1.67 billion in cash and cash equivalents as of June 30, 2020March 31, 2021 as compared to $1.87$2.21 billion as of December 31, 2019.2020. See “—Liquidity and Capital Resources,” below for further details.
Critical Accounting Policies and Estimates
Our 20192020 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 20192020 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for SecondFirst Quarter 2020.2021.
Recent Accounting Pronouncements
For a discussion of recent accounting pronouncements, see Note 3 to the Consolidated Financial Statements included elsewhere in this Report.
Regulatory Matters
We are subject to extensive federal, state and international regulation and supervision in the jurisdictions in which we do business, including insurance holding company laws in the jurisdictions in which our insurance companies are domiciled. For example, under applicable insurance holding company regulations, no person may acquire a controlling interest in the Company or any of our insurance company subsidiaries, unless such person has obtained prior regulatory approval for such acquisition. Under these laws, “control” is presumed when any person acquires or holds, directly or indirectly, 10% or more of our common stock or of the voting securities of any of our insurance company subsidiaries. To obtain approval, the proposed acquiror must file an application with the relevant regulator, including the regulator for the insurance subsidiaries we have established in the Netherlands for continued access to the European markets after the transition period for the U.K.’s withdrawal from the European Union. As previously disclosed, our insurance subsidiaries in the Netherlands have received the necessary regulatory approvals for the Company to continue conducting business in Europe following the end of the transition period.
35
For additional information, see “Item 1—Business—Regulation” in our 2019 Annual Report.


Results of Operations
Assurant Consolidated
Overview
The table below presents information regarding our consolidated results of operations for the periods indicated:
 For the Three Months Ended June 30, For the Six Months Ended June 30,
 2020 2019 2020 2019
Revenues:       
Net earned premiums$2,036.4
 $2,032.7
 $4,120.2
 $3,937.1
Fees and other income271.5
 336.1
 688.4
 664.4
Net investment income137.2
 154.2
 293.2
 320.5
Net realized gains (losses) on investments24.1
 17.8
 (71.2) 46.6
Amortization of deferred gains on disposal of businesses2.4
 4.7
 6.6
 12.5
Total revenues2,471.6
 2,545.5
 5,037.2
 4,981.1
Benefits, losses and expenses:       
Policyholder benefits592.1
 687.0
 1,199.3
 1,301.7
Amortization of deferred acquisition costs and value of business acquired885.3
 815.8
 1,799.5
 1,593.1
Underwriting, general and administrative expenses736.2
 823.7
 1,644.3
 1,623.6
Iké net losses4.5
 9.2
 5.9
 9.4
Interest expense26.7
 26.5
 52.2
 53.0
Total benefits, losses and expenses2,244.8
 2,362.2
 4,701.2
 4,580.8
Income before provision for income taxes226.8
 183.3
 336.0
 400.3
Provision for income taxes48.4
 40.7
 1.8
 89.1
Net income178.4
 142.6
 334.2
 311.2
Less: Net (income) loss attributable to non-controlling interest(0.3) 1.5
 (1.4) (1.4)
Net income attributable to stockholders178.1
 144.1
 332.8
 309.8
Less: Preferred stock dividends(4.6) (4.6) (9.3) (9.3)
Net income attributable to common stockholders$173.5
 $139.5
 $323.5
 $300.5
 For the Three Months Ended March 31,
 20212020
Revenues:
Net earned premiums$2,105.6 $2,065.5 
Fees and other income249.9 383.6 
Net investment income76.3 83.6 
Net realized gains (losses) on investments0.8 (84.0)
Total revenues2,432.6 2,448.7 
Benefits, losses and expenses:
Policyholder benefits528.7 535.2 
Amortization of deferred acquisition costs and value of business acquired946.7 895.3 
Underwriting, general and administrative expenses735.7 892.6 
Interest expense28.4 25.5 
Total benefits, losses and expenses2,239.5 2,348.6 
Income before provision for income taxes193.1 100.1 
Provision (benefit) for income taxes44.6 (48.5)
Net income from continuing operations148.5 148.6 
Net income from discontinued operations14.3 7.2 
Net income162.8 155.8 
Less: Net loss (income) attributable to non-controlling interest0.2 (1.1)
Net income attributable to stockholders163.0 154.7 
Less: Preferred stock dividends(4.7)(4.7)
Net income attributable to common stockholders$158.3 $150.0 
For the Three Months Ended June 30, 2020March 31, 2021 Compared to the Three Months Ended June 30, 2019March 31, 2020
Net Income Attributable to Common Stockholdersfrom Continuing Operations
Consolidated net income attributablefrom continuing operations was flat at $148.5 million for First Quarter 2021 compared to common stockholders$148.6 million for First Quarter 2020. Net income from continuing operations for First Quarter 2021 included $34.5 million of reportable catastrophes, primarily related to the Texas winter storms, compared to $12.9 million in First Quarter 2020. Excluding reportable catastrophes, net income from continuing operations increased $34.0$21.5 million, or 24%, to $173.5 million for Second Quarter 2020 compared with $139.5 million for Second Quarter 2019. The increase was13% primarily due to improved results from Global Housing and continued mobile growth in Global Lifestyle. Additionally, Second Quarter 2019 included an $11.4 million after-tax impairmentthe absence of certain intangible assets from our acquisition of Green Tree Insurance Agency. These increases were partially offset by $15.2 million of after-tax direct and incremental operating expenses incurred in connection with the COVID-19 pandemic during Second Quarter 2020.
For the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019
Net Income Attributable to Common Stockholders
Consolidated net income attributable to common stockholders increased $23.0 million, or 8%, to $323.5 million for Six Months 2020 compared with $300.5 million for Six Months 2019, primarily due to a $84.4 million tax benefit from Six Months 2020 related to the utilization of net operating losses in connection with the CARES Act. This increase was also due to improved results from Global Lifestyle and Global Housing. These increases were partially offset by $47.4$67.2 million of after-tax net unrealizedrealized losses, mainly from a decrease in the fair value of our equity securities and collateralized loan obligations for Six Monthsin First Quarter 2020, comparedfavorable earnings contributions from Global Housing, that were primarily driven by favorable non-catastrophe loss experience and growth in Multifamily Housing, as well as an increase from Global Lifestyle, primarily due to $29.9the continued expansion in Global Automotive and Connected Living. These increases were partially offset by the absence of a $79.3 million tax benefit that was recorded in First Quarter 2020 related to the utilization of after-tax unrealized gains on equity securities for Six Months 2019 and $17.6 million of

after-tax direct and incrementalnet operating expenses incurredlosses in connection with the COVID-19 pandemic during Six Months 2020.2020 Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).

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Global Lifestyle
Overview
The table below presents information regarding the Global Lifestyle segment’s results of operations for the periods indicated: 
For the Three Months Ended June 30, For the Six Months Ended June 30, For the Three Months Ended March 31,
2020 2019 2020 2019 20212020
Revenues:       Revenues:
Net earned premiums$1,568.1
 $1,545.5
 $3,165.8
 $2,974.0
Net earned premiums$1,648.7 $1,597.7 
Fees and other income200.6
 263.6
 549.8
 516.7
Fees and other income213.6 349.2 
Net investment income44.2
 56.5
 98.9
 115.4
Net investment income50.8 54.7 
Total revenues1,812.9
 1,865.6
 3,814.5
 3,606.1
Total revenues1,913.1 2,001.6 
Benefits, losses and expenses:       Benefits, losses and expenses:
Policyholder benefits343.1
 412.9
 679.3
 760.1
Policyholder benefits327.4 336.2 
Amortization of deferred acquisition costs and value of business acquired810.8
 740.7
 1,649.2
 1,446.5
Amortization of deferred acquisition costs and value of business acquired889.2 838.4 
Underwriting, general and administrative expenses500.7
 570.2
 1,168.6
 1,126.0
Underwriting, general and administrative expenses527.2 667.9 
Total benefits, losses and expenses1,654.6
 1,723.8
 3,497.1
 3,332.6
Total benefits, losses and expenses1,743.8 1,842.5 
Segment income before provision for income taxes158.3
 141.8
 317.4
 273.5
Segment income before provision for income taxes169.3 159.1 
Provision for income taxes36.5
 32.5
 74.7
 63.6
Provision for income taxes40.2 38.2 
Segment net income$121.8
 $109.3
 $242.7
 $209.9
Segment net income$129.1 $120.9 
Net earned premiums, fees and other income:       Net earned premiums, fees and other income:
Connected Living (mobile and service contracts)$916.6
 $961.7
 $2,004.9
 $1,832.7
Connected Living (mobile and service contracts)$952.4 $1,088.3 
Global Automotive755.4
 731.4
 1,508.5
 1,425.0
Global Automotive812.4 753.1 
Global Financial Services and Other96.7
 116.0
 202.2
 233.0
Global Financial Services and Other97.5 105.5 
Total$1,768.7
 $1,809.1
 $3,715.6
 $3,490.7
Total$1,862.3 $1,946.9 
Net earned premiums, fees and other income:       Net earned premiums, fees and other income:
Domestic$1,310.3
 $1,251.1
 $2,744.8
 $2,442.4
Domestic$1,380.6 $1,434.5 
International458.4
 558.0
 970.8
 1,048.3
International481.7 512.4 
Total$1,768.7
 $1,809.1
 $3,715.6
 $3,490.7
Total$1,862.3 $1,946.9 
For the Three Months Ended June 30, 2020March 31, 2021 Compared to the Three Months Ended June 30, 2019March 31, 2020
Net Income
Segment net income increased $12.5$8.2 million, or 11%7%, to $121.8$129.1 million for SecondFirst Quarter 20202021 from $109.3$120.9 million for SecondFirst Quarter 2019. The increase was2020. First Quarter 2021 included $4.3 million of one-time income in Global Automotive, compared to $11.7 million of benefits within Connected Living and Global Automotive in First Quarter 2020. Excluding these items, segment net income increased $15.6 million, or 14%, primarily driven by our Connected Living business, mainly due to continuedfrom mobile subscriber growth in Asia Pacific and North America, and Asia Pacific and higher average selling prices on mobile trade-in programsresults, including contributions from lower inventory in the global marketplace. Ourrecent acquisitions, as well as improved profitability within extended service contracts. Global Automotive business also contributed to the increase, including a $4.2 million after-tax client benefit. Both Connected Living and Global Automotive benefitted from reduced claims activity mainly outside the U.S. due to COVID-19.organic global growth, higher investment income and lower claims activity. These increases were partially offset by lower income from our Global Financial Services and Other business mainly due to higher loss experience from COVID-19 and unfavorable foreign exchange from our international credit business, as well as anticipated declines fromthe run-off of certain domestic credit insurance business in run-off.mobile programs.
Total Revenues
Total revenues decreased $52.7$88.5 million, or 3%4%, to $1.81$1.91 billion for SecondFirst Quarter 20202021 from $1.87$2.00 billion for SecondFirst Quarter 2019.2020. Fees and other income decreased $63.0$135.6 million, or 24%39%, mainly driven by a previously disclosed mobile program contract change, the run-off of certain domestic mobile programs, partially offset by growth from recent mobile acquisitions. Net investment income decreased $3.9 million, or 7%, primarily due to a declinelower cash yields and lower income from real estate, partially offset by higher income from an increase in our Connected Living business driven by lower mobile trade-in volumes from our repairs and logistics business due to global lockdown measures for COVID-19 thatfair value of investments in limited partnerships. These decreases in total revenues were partially offset by higher average selling prices. Net investment income decreased $12.3 million, or 22%, primarily due to declines in cash yields, lower average assets and unfavorable foreign exchange. These decreases were partially offset by a $22.6 million, or 1%,an increase in net earned premiums that wasof $51.0 million, or 3%, primarily driven by continued growth from prior period sales in our Global Automotive business, due to growth from prior period production and new business, as well as organic growth in our Connected Living business due to continued subscriber growth from mobile protection programs added over the past several years and a new extended service

contract program. These increases in net earned premiums were partially offset by unfavorable foreign exchange and continuedthe run-off of ourcertain domestic credit insurance business.mobile programs.
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Total Benefits, Losses and Expenses
Total benefits, losses and expenses decreased $69.2$98.7 million, or 4%5%, to $1.65$1.74 billion for SecondFirst Quarter 20202021 from $1.72$1.84 billion for SecondFirst Quarter 2019. Policyholder benefits decreased $69.8 million, or 17%, mostly due to lower loss experience in our Connected Living business, as a result of a favorable mix of mobile business and COVID-19, and our Global Automotive business, as well as favorable foreign exchange.2020. The decrease was partially offset by Global Financial Services and Other from higher losses in our credit business, alsoprimarily due to COVID-19. Underwriting,a decrease in underwriting, general and administrative expenses decreased $69.5of $140.7 million, or 12%21%, primarily due to lower trade-in volumes in ourthe run-off of certain domestic repairsmobile programs and logistics business and favorable foreign exchange,a previously disclosed mobile program contract change, partially offset by growthan increase in our mobile protection and extended service contract programs within our Connected Living business and growth in our Global Automotive business. These decreases wereand Connected Living businesses, including new mobile acquisitions. Policyholder benefits decreased $8.8 million, or 3%, primarily driven by lower loss experience from Global Automotive. The decrease in total benefits, losses and expenses was partially offset by a $70.1$50.8 million, or 9%6%, increase in amortization of deferred acquisition costs and value of business acquired, primarily duemainly related to prior period growth from our Global Automotive and Connected Living businesses.
For the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019
Net Income
Segment net income increased $32.8 million, or 16%, to $242.7 million for Six Months 2020 from $209.9 million for Six Months 2019, and included a $6.7 million after-tax benefit for a client recoverable in our Connected Living business. Excluding this item, the increase in net income was mostly driven by our Connected Living business, primarily due to continued mobile subscriber growth in North America and Asia Pacific and higher income in our Global Automotive business, including $9.2 million of client benefits. The increase was partially offset by lower income in our Global Financial Services and Other business mainly due to higher loss experience and unfavorable foreign exchange from our international credit business as well as anticipated declines from the domestic credit insurance business in run-off.
Total Revenues
Total revenues increased $208.4 million, or 6%, to $3.81 billion for Six Months 2020 from $3.61 billion for Six Months 2019. Net earned premiums increased $191.8 million, or 6%, primarily driven by growth in our Connected Living business, mainly due to continued subscriber growth from mobile protection programs and a new extended service contract program, and continued growth from prior period production in our Global Automotive business, partially offset by unfavorable foreign exchange. Fees and other income increased $33.1 million, or 6%, primarily due to higher mobile trade-in volumes and an $11.1 million benefit for a client recoverable in our Connected Living business. Net investment income decreased $16.5 million, or 14%, primarily due to declines in cash yields, lower average assets and unfavorable foreign exchange.
Total Benefits, Losses and Expenses
Total benefits, losses and expenses increased $164.5 million, or 5%, to $3.50 billion for Six Months 2020 from $3.33 billion for Six Months 2019, primarily driven by amortization of deferred acquisition costs and value of business acquired which increased $202.7 million, or 14%, primarily due to growth from our Global Automotive and Connected Living businesses. Underwriting, general and administrative expenses increased $42.6 million, or 4%, primarily due to growth from our Connected Living business, including higher mobile trade-in volumes and growth in our mobile protection and extended service contract programs, and growth from our Global Automotive business, partially offset by favorable foreign exchange. Policyholder benefits decreased $80.8 million, or 11%, mostly due to lower loss experience in our Connected Living business, as a result of a favorable mix of mobile business and COVID-19, and our Global Automotive business, as well as favorable foreign exchange. The decrease was partially offset by an increase from growth in our Connected Living business.
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Global Housing
Overview
The table below presents information regarding the Global Housing segment’s results of operations for the periods indicated:
For the Three Months Ended June 30, For the Six Months Ended June 30, For the Three Months Ended March 31,
2020 2019 2020 2019 20212020
Revenues:       Revenues:
Net earned premiums$453.2
 $471.8
 $921.0
 $931.9
Net earned premiums$456.9 $467.8 
Fees and other income35.7
 38.3
 68.3
 78.2
Fees and other income36.1 32.6 
Net investment income16.4
 18.8
 38.4
 44.2
Net investment income19.4 22.0 
Total revenues505.3
 528.9
 1,027.7
 1,054.3
Total revenues512.4 522.4 
Benefits, losses and expenses:       Benefits, losses and expenses:
Policyholder benefits180.4
 207.8
 379.1
 406.7
Policyholder benefits201.3 198.7 
Amortization of deferred acquisition costs and value of business acquired56.2
 57.5
 113.1
 111.4
Amortization of deferred acquisition costs and value of business acquired57.5 56.9 
Underwriting, general and administrative expenses161.1
 173.3
 334.4
 354.0
Underwriting, general and administrative expenses168.8 173.3 
Total benefits, losses and expenses397.7
 438.6
 826.6
 872.1
Total benefits, losses and expenses427.6 428.9 
Segment income before provision for income taxes107.6
 90.3
 201.1
 182.2
Segment income before provision for income taxes84.8 93.5 
Provision for income taxes22.2
 18.8
 41.5
 38.0
Provision for income taxes17.4 19.3 
Segment net income$85.4
 $71.5
 $159.6
 $144.2
Segment net income$67.4 $74.2 
Net earned premiums, fees and other income:       Net earned premiums, fees and other income:
Lender-placed Insurance$265.0
 $281.8
 $529.3
 $556.0
Lender-placed Insurance$260.4 $264.3 
Multifamily Housing111.2
 106.6
 220.2
 210.6
Multifamily Housing117.3 109.0 
Specialty and Other112.7
 121.7
 239.8
 243.5
Specialty and Other115.3 127.1 
Total$488.9
 $510.1
 $989.3
 $1,010.1
Total$493.0 $500.4 
For the Three Months Ended June 30, 2020March 31, 2021 Compared to the Three Months Ended June 30, 2019March 31, 2020
Net Income
Segment net income increased $13.9decreased $6.8 million, or 19%9%, to $85.4$67.4 million for SecondFirst Quarter 20202021 from $71.5$74.2 million for SecondFirst Quarter 2019.2020. Segment net income for SecondFirst Quarter 20202021 included $10.1$34.5 million of reportable catastrophes, mainlyprimarily related to severe weather across the U.S.,Texas winter storms, compared to $2.7$12.8 million of favorable development for SecondFirst Quarter 2019.2020. Excluding reportable catastrophes, segment net income increased $26.7$14.9 million, or 39%17%, primarily due todriven by favorable non-catastrophe loss experiencelosses primarily across all major products, driven by lower claims frequency, including impacts from COVID-19, and previously implemented underwriting initiatives. Modest growth across our Specialty and Other product lines and the absence of losses from our small commercial product, which is now in run-off, also contributed to the increase, as well asproducts, higher premium rates in our Lender-placed Insurance business and growth in our Multifamily Housing business. The increase wasThese increases were partially offset by declines in our Lender-placed Insurancelower REO volumes related to COVID-19 and fewer policies in-force from a financially insolvent client as well as lower REO volumes as less homes are moving to default or foreclosure due to moratoriums enacted in connection with COVID-19.our Lender-placed Insurance business.
Total Revenues
Total revenues decreased $23.6$10.0 million, or 4%2%, to $505.3$512.4 million for SecondFirst Quarter 20202021 from $528.9$522.4 million for SecondFirst Quarter 2019.2020. Net earned premiums decreased $18.6$10.9 million, or 4%2%, primarily due to the run-off of our small commercial product and declines in our Lender-placed Insurance business, mainly from thedriven by lower REO volumes related to COVID-19 and a reduction ofin policies in-force for a financially insolvent client, the run-off of certain sharing economy offerings and lower REO volume,the run-off of our small commercial product. This decrease was partially offset by premium rate increases in our Lender-placed Insurance business and continued growth from renters insurance in our Multifamily Housing business. Fees and otherNet investment income decreased $2.6 million, or 7%12%, primarily due to a decline in Lender-placed Insurance mostly due to declines in policies in-force. Net investment income decreased $2.4 million, or 13%, primarily due to lower cash yields, lower income from real estate related investments and alower cash yields. The decrease in invested assets.

total revenues was partially offset by an increase in fees and other income of $3.5 million, or 11%, primarily due to an increase in claim processing fees in our Lender-placed Insurance business and growth in our Multifamily Housing business.
Total Benefits, Losses and Expenses
Total benefits, losses and expenses decreased $40.9$1.3 million or 9%, to $397.7$427.6 million for SecondFirst Quarter 20202021 from $438.6$428.9 million for SecondFirst Quarter 2019.2020. The decrease was primarily due to a decrease in total policyholder benefits of $27.4 million, or 13%, from lower non-catastrophe losses, as previously described, partially offset by an increase in reportable catastrophe losses mainly related to severe weather across the U.S. in Second Quarter 2020. Underwriting,underwriting, general and administrative expenses decreased $12.2 million, or 7%, primarily due to lower employment related expenses in our Lender-placed Insurance business.
For the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019
Net Income
Segment net income increased $15.4 million, or 11%, to $159.6 million for Six Months 2020 from $144.2 million for Six Months 2019. Segment net income included $16.8 million of higher reportable catastrophes in Six Months 2020 compared to Six Months 2019 primarily driven by severe weather across the U.S. in Second Quarter 2020 and earthquakes in Puerto Rico in First Quarter 2020. Excluding reportable catastrophes, segment net income increased $32.2 million, or 21%, primarily driven by favorable non-catastrophe losses across all major products, the absence of losses from our small commercial product, which is now in run-off, and higher premium rates and lower operating expenses in our Lender-placed Insurance business. The increase was partially offset by declines in our Lender-placed Insurance business, mainly from a reduction in policies in-force from a financially insolvent client and lower fee income and REO volume.
Total Revenues
Total revenues decreased $26.6 million, or 3%, to $1.03 billion for Six Months 2020 from $1.05 billion for Six Months 2019. Net earned premiums decreased $10.9 million, or 1%, primarily due to our small commercial business and declines in our Lender-placed Insurance business, mainly from the reduction in policies in-force for a financially insolvent client and lower REO volume. This decrease was partially offset by premium rate increases in our Lender-placed Insurance business, growth from our Specialty and Other business, mainly sharing economy products, and continued growth from renters insurance in our Multifamily Housing business. Fees and other income decreased $9.9 million, or 13%, primarily due to a decline in Lender-placed Insurance, mostly due to declines in policies in-force. Net investment income decreased $5.8 million, or 13%, primarily due to lower cash yields, lower income from real estate related investments and a decrease in invested assets.
Total Benefits, Losses and Expenses
Total benefits, losses and expenses decreased $45.5 million, or 5%, to $826.6 million for Six Months 2020 from $872.1 million for Six Months 2019. The decrease was primarily due to a decrease in total policyholder benefits of $27.6 million, or 7%, from lower non-catastrophe losses, as explained above, partially offset by an increase in reportable catastrophe losses mainly related to severe weather across the U.S. in Second Quarter 2020 and earthquakes in Puerto Rico in First Quarter 2020. Underwriting, general and administrative expenses decreased $19.6 million, or 6%, primarily due to lower employment related expenses in our Lender-placed Insurance business.


Global Preneed
Overview
The table below presents information regarding the Global Preneed segment’s results of operations for the periods indicated:
39

 For the Three Months Ended June 30, For the Six Months Ended June 30,
 2020 2019 2020 2019
Revenues:       
Net earned premiums$15.1
 $15.4
 $33.4
 $31.2
Fees and other income35.2
 34.2
 70.3
 67.5
Net investment income70.1
 70.6
 140.2
 139.7
Total revenues120.4
 120.2
 243.9
 238.4
Benefits, losses and expenses:       
Policyholder benefits68.5
 66.2
 140.5
 134.8
Amortization of deferred acquisition costs and value of business acquired18.3
 17.6
 37.2
 35.2
Underwriting, general and administrative expenses16.1
 14.7
 33.1
 31.6
Total benefits, losses and expenses102.9
 98.5
 210.8
 201.6
Segment income before provision for income taxes17.5
 21.7
 33.1
 36.8
Provision for income taxes3.8
 4.8
 7.1
 8.1
Segment net income$13.7
 $16.9
 $26.0
 $28.7
For the Three Months Ended June 30, 2020 Compared to the Three Months Ended June 30, 2019
Net Income
Segment net income decreased $3.2 million, or 19%, to $13.7 million for Second Quarter 2020 from $16.9 million for Second Quarter 2019, primarily due to lower investment income from lower yields, as well as higher mortality, including impacts of COVID-19.
Total Revenues
Total revenues were relatively flat at $120.4 million for Second Quarter 2020 compared to $120.2 million for Second Quarter 2019 as prior period sales of final need insurance and growth in pre-funded funeral policies were partially offset by lower net investment income.
Total Benefits, Losses and Expenses
Total benefits, losses and expenses increased $4.4 million, or 4%, to $102.9 million for Second Quarter 2020 from $98.5 million for Second Quarter 2019. Policyholder benefits increased $2.3$4.5 million, or 3%, primarily due to higher losses aslower catastrophe-related assessments and a result of growthdecline in advertising expenses for the domestic preneedrenters business and higher mortality due to the impact of COVID-19. Underwriting, general and administrative expensesin Multifamily Housing. Policyholder benefits increased $1.4$2.6 million, or 10%1%, primarily due to an increase in general expenses.
For the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019
Net Income
Segment net income decreased $2.7 million, or 9%, to $26.0 million for Six Months 2020mainly from $28.7 million for Six Months 2019, primarily due to higher investment expenses and lower yields, as well as higher mortality and increased general expenses,reportable catastrophe losses, partially offset by growthlower non-catastrophe losses in pre-funded funeral policies in the U.S.
Total Revenues
Total revenues increased $5.5 million, or 2%, to $243.9 million for Six Months 2020 from $238.4 million for Six Months 2019. Net earned premium increased $2.2 million, or 7%, primarily due to sales of final need insurance. Feesour sharing economy offerings and other income increased $2.8 million, or 4%, due to the growth in pre-funded funeral policies in the U.S. Net investment income increased

$0.5 million primarily due to an increase in invested assets, partially offset by higher investment expenses related to our strategic decision to outsource the management of our investment portfolio,small commercial product, as well as lower yields.frequency of theft and vandalism claims across most major products.
Total Benefits, Losses and Expenses
40
Total benefits, losses and expenses increased $9.2 million, or 5%, to $210.8 million for Six Months 2020 from $201.6 million for Six Months 2019. Policyholder benefits increased $5.7 million, or 4%, primarily due to the growth in the domestic preneed business and higher mortality due to the impact of COVID-19. Amortization of deferred acquisition costs and value of business acquired increased $2.0 million, or 6%, due to the business growth. Underwriting, general and administrative expenses increased $1.5 million, or 5%, due to an increase in general expenses.



Corporate and Other
Overview
The tables below present information regarding the Corporate and Other’s segment results of operations for the periods indicated:
For the Three Months Ended June 30, For the Six Months Ended June 30,For the Three Months Ended March 31,
2020 2019 2020 201920212020
Revenues:       Revenues:
Net earned premiums$—
 $—
 $—
 $—
Fees and other income—
 —
 —
 2.0
Fees and other income$0.2 $1.8 
Net investment income6.5
 8.3
 15.7
 21.2
Net investment income6.1 6.9 
Net realized gains (losses) on investments24.1
 17.8
 (71.2) 46.6
Net realized gains (losses) on investments0.8 (84.0)
Amortization of deferred gains on disposal of businesses2.4
 4.7
 6.6
 12.5
Total revenues33.0
 30.8
 (48.9) 82.3
Total revenues7.1 (75.3)
Benefits, losses and expenses:       Benefits, losses and expenses:
Policyholder benefits0.1
 0.1
 0.4
 0.1
Policyholder benefits— 0.3 
General and administrative expenses58.3
 65.5
 108.2
 112.0
General and administrative expenses39.7 51.4 
Iké net losses4.5
 9.2
 5.9
 9.4
Interest expense26.7
 26.5
 52.2
 53.0
Interest expense28.4 25.5 
Total benefits, losses and expenses89.6
 101.3
 166.7
 174.5
Total benefits, losses and expenses68.1 77.2 
Segment loss before benefit for income taxes(56.6) (70.5) (215.6) (92.2)Segment loss before benefit for income taxes(61.0)(152.5)
Benefit for income taxes(14.1) (15.4) (121.5) (20.6)Benefit for income taxes(13.0)(106.0)
Segment net loss(42.5) (55.1) (94.1) (71.6)
Less: Net (income) loss attributable to non-controlling interest(0.3) 1.5
 (1.4) (1.4)
Net loss attributable to stockholders(42.8) (53.6) (95.5) (73.0)
Less: Preferred stock dividends(4.6) (4.6) (9.3) (9.3)
Net loss attributable to common stockholders$(47.4) $(58.2) $(104.8) $(82.3)
Segment net loss from continuing operationsSegment net loss from continuing operations$(48.0)$(46.5)
For the Three Months Ended June 30, 2020March 31, 2021 Compared to the Three Months Ended June 30, 2019March 31, 2020
Net Loss Attributable to Common Stockholdersfrom Continuing Operations
Segment net loss attributable to common stockholders decreased $10.8from continuing operations increased $1.5 million, or 19%3%, to $47.4$48.0 million for SecondFirst Quarter 2020 compared to $58.22021 from $46.5 million for SecondFirst Quarter 2019,2020. The increase in net loss was primarily due to the absence of an $11.4a $79.3 million after-tax impairmenttax benefit related to the utilization of certain intangible assets from our acquisition of Green Tree Insurance Agency that was recognized in Second Quarter 2019 and a $4.8 million increase in after-tax net realized gains on investments, mostly driven by net unrealized gains on equity securities and collateralized loan obligations in Second Quarter 2020, partially offset by a decrease in net realized gains on sales of fixed maturities. The decrease in segment net loss attributable to common stockholders was partially offset by $15.2 million of after-tax direct and incremental operating expenses incurredlosses in connection with the COVID-19 pandemic. Second quarter 2020 COVID-19 expenses were primarily related to employee-related expenses, including additional paid time off, a one-time COVID-19 relief payment to eligible employees and incentive bonuses for eligible on-site employees.
Total Revenues
Total revenues increased $2.2 million, or 7%, to $33.0 million for Second Quarter 2020 from $30.8 million for Second Quarter 2019, primarily due to net unrealized gains from an increaseCARES Act in the fair value of our equity securities and collateralized loan obligations in SecondFirst Quarter 2020. ThisThe increase was partially offset by a decrease in net realized gains on sales of fixed maturities, lower amortization of deferred gains associated with the sale of Assurant Employee Benefits and lower investment income, primarily due to a higher concentration of lower yielding liquid investments in Second Quarter 2020 compared to Second Quarter 2019.
Total Expenses

Total benefits, losses and expenses decreased $11.7 million, or 12%, to $89.6 million for Second Quarter 2020 from $101.3 million for Second Quarter 2019, primarily driven by the absence of a $14.6 million impairment of certain intangible assets from our acquisition of Green Tree Insurance Agency and a $9.2 million loss from a decrease in fair value of derivative instruments for our investment in Iké that were both recognized in Second Quarter 2019. The decrease was also due to a $3.4 million benefit from the amortization of the deferred gain related to the termination of our retirement health benefits plan, a decrease in integration expenses associated with the acquisition of TWG Holdings Limited and its subsidiaries (“TWG”) and lower unfavorable remeasurement related foreign exchange. These decreases were partially offset by $19.2 million of direct and incremental operating expenses incurred in connection with the COVID-19 pandemic and a $3.9 million loss on the sale of Iké.
For the Six Months Ended June 30, 2020 Compared to the Six Months Ended June 30, 2019
Net Income
Segment net loss attributable to common stockholders increased $22.5 million, or 27%, to $104.8 million for Six Months 2020 from $82.3 million for Six Months 2019, primarily due to an increase in net realized losses on investments driven by $47.4$67.2 million of after-tax net unrealizedrealized losses, mainly from a decrease in the fair value of our equity securities and collateralized loan obligations in Six MonthsFirst Quarter 2020, compared to $29.9as well as the absence of $5.8 million of after-tax unrealized gains on equity securities in Six Months 2019, as well as $17.6losses associated with the sale of Iké and $4.2 million of after-tax direct and incremental operating expenses incurredacquisition related transaction costs, all recorded in connection with the COVID-19 pandemic. The increase in segment net loss attributable to common stockholders was partially offset by an $84.4 million tax benefit related to the utilization of net operating losses in connection with the CARES Act. In addition, SecondFirst Quarter 2019 included an $11.4 million after-tax impairment of certain intangible assets from our acquisition of Green Tree Insurance Agency.2020.
Total Revenues
Total revenues decreased $131.2increased $82.4 million to $(48.9)$7.1 million for Six Months 2020First Quarter 2021 from $82.3$(75.3) million for Six Months 2019,First Quarter 2020, primarily due to an increase inthe absence of unrealized losses on investments mostly related to a net decrease in the fair value of our equity securities and collateralized loan obligations. Lower amortization of deferred gains associated with the sale of Assurant Employee Benefits and lower investment income, primarily due to a higher concentration of lower yielding liquid investmentsobligations in Six Months 2020 compared to Six Months 2019, also contributed to the decrease.First Quarter 2020.
Total Benefits, Losses and Expenses
Total benefits, losses and expenses decreased $7.8$9.1 million, or 4%12%, to $166.7$68.1 million for Six Months 2020First Quarter 2021 from $174.5$77.2 million for SixFirst Quarter 2020. The decrease was primarily driven by the absence of $5.2 million of acquisition related transaction costs from First Quarter 2020 and a $4.2 million decrease in current expected credit losses associated with our credit risk from reinsurance recoverables related to businesses in run-off.
41

Discontinued Operations
Overview
The table below presents information regarding the results of the discontinued operations for the periods indicated:
 For the Three Months Ended March 31,
 20212020
Revenues:
Net earned premiums$17.7 $18.3 
Fees and other income37.5 37.5 
Net investment income72.0 72.4 
Net realized losses on investments(1.1)(11.3)
Total revenues126.1 116.9 
Benefits, losses and expenses:
Policyholder benefits74.0 72.0 
Amortization of deferred acquisition costs and value of business acquired19.2 18.9 
Underwriting, general and administrative expenses21.8 16.9 
Total benefits, losses and expenses115.0 107.8 
Income before (benefit) provision for income taxes11.1 9.1 
(Benefit) provision for income taxes(3.2)1.9 
Net income from discontinued operations$14.3 $7.2 
For the Three Months 2019,Ended March 31, 2021 Compared to the Three Months Ended March 31, 2020
Net Income from Discontinued Operations
Net income from discontinued operations increased $7.1 million, or 99%, to $14.3 million for First Quarter 2021 from $7.2 million for First Quarter 2020, primarily due to the absence of unrealized losses mainly related to decreases in the fair values of equity securities in First Quarter 2020.The increase in First Quarter 2021 was also due to a $14.6$1.9 million impairment of certain intangible assets recognized in Six Months 2019, $9.8 million decrease in integration expenses associated with the TWG acquisition and a $4.5 million benefit from the amortization of the deferrednet gain related to the terminationpending sale of our retirement healthGlobal Preneed consisting of $5.3 million in tax benefits plan. These decreases were partially offset by $22.3$3.4 million of direct and incremental operating expensesafter-tax transaction costs incurred in connection with the COVID-19 pandemic.pending sale. The increases in net income from discontinued operations were partially offset by a $2.4 million decrease in Global Preneed’s operating results primarily due to higher mortality in connection with COVID-19.

Total Revenues
Total revenues increased $9.2 million, or 8%, to $126.1 million for First Quarter 2021 compared to $116.9 million for First Quarter 2020, primarily due to the absence of unrealized losses mainly related to decreases in the fair values of equity securities in First Quarter 2020.
Total Benefits, Losses and Expenses
Total benefits, losses and expenses increased $7.2 million, or 7%, to $115.0 million for First Quarter 2021 from $107.8 million for First Quarter 2020, primarily driven by transactions expenses in First Quarter 2021 related to the pending sale and higher policyholder benefits mainly due to an increase in inforce policies and higher mortality due to COVID-19.

42

Investments
We had total investments of $14.65$7.87 billion and $14.57$8.22 billion as of June 30, 2020March 31, 2021 and December 31, 2019,2020, respectively. Net unrealized gains on our fixed maturity securities portfolio increaseddecreased by $331.6$200.6 million during Six Months 2020,First Quarter 2021, from $1.26 billion$570.9 million as of December 31, 20192020 to $1.59 billion$370.3 million as of June 30, 2020,March 31, 2021, primarily due to spread compression, partially offset by decreasesan increase in foreign exchange rates in several countries.Treasury yields.
The following table shows the credit quality of our fixed maturity securities portfolio as of the dates indicated:
Fair value as of Fair value as of
Fixed Maturity Securities by Credit QualityJune 30, 2020 December 31, 2019Fixed Maturity Securities by Credit QualityMarch 31, 2021December 31, 2020
Aaa / Aa / A$8,079.4
 63.9% $8,014.7
 65.1%Aaa / Aa / A$3,850.0 58.5 %$4,051.3 59.5 %
Baa3,969.4
 31.4% 3,734.7
 30.3%Baa2,279.1 34.7 %2,288.1 33.6 %
Ba514.5
 4.1% 480.7
 3.9%Ba342.9 5.2 %384.4 5.6 %
B and lower76.3
 0.6% 92.3
 0.7%B and lower103.9 1.6 %91.7 1.3 %
Total$12,639.6
 100.0% $12,322.4
 100.0%Total$6,575.9 100.0 %$6,815.5 100.0 %
The following table shows the major categories of net investment income for the periods indicated: 
 Three Months Ended March 31,
 20212020
Fixed maturity securities$57.4 $57.8 
Equity securities3.6 3.6 
Commercial mortgage loans on real estate1.3 1.9 
Short-term investments0.8 2.7 
Other investments14.7 3.3 
Cash and cash equivalents1.6 7.0 
Revenue from consolidated investment entities (1)— 31.9 
Total investment income79.4 108.2 
Investment expenses(3.1)(7.2)
Expenses from consolidated investment entities (1)— (17.4)
Net investment income$76.3 $83.6 
 Three Months Ended June 30, Six Months Ended June 30,
 2020 2019 2020 2019
Fixed maturity securities$118.2
 $123.0
 $238.9
 $245.1
Equity securities5.2
 5.7
 10.4
 11.5
Commercial mortgage loans on real estate8.6
 9.2
 18.3
 17.7
Short-term investments1.5
 5.8
 4.3
 11.4
Other investments3.1
 4.7
 8.3
 12.3
Cash and cash equivalents2.3
 6.5
 9.3
 13.5
Revenue from consolidated investment entities (1)20.5
 23.9
 52.4
 64.6
Total investment income159.4
 178.8
 341.9
 376.1
Investment expenses(6.6) (6.4) (15.7) (12.0)
Expenses from consolidated investment entities (1)(15.6) (18.2) $(33.0) $(43.6)
Net investment income$137.2
 $154.2
 $293.2
 $320.5
(1)The following table shows the net of revenues and expenses from consolidated investment entities for the periods indicated. Refer to Note 11 to the Consolidated Financial Statements included elsewhere in this Report for further detail.
(1)The following table shows the net of revenues and expenses from consolidated investment entities for the periods indicated.
Three Months Ended June 30, Six Months Ended June 30,Three Months Ended March 31,
2020 2019 2020 201920212020
Investment income from direct investments in:       Investment income from direct investments in:
Real estate fund (1)$0.1
 $1.4
 $8.3
 $10.8
Real estate fund (1)$— $8.2 
CLO entities3.3
 3.0
 8.0
 6.8
CLO entities— 4.7 
Investment management fees1.5
 1.3
 3.1
 3.4
Investment management fees— 1.6 
Net investment income from consolidated investment entities$4.9
 $5.7
 $19.4
 $21.0
Net investment income from consolidated investment entities$— $14.5 
(1)
(1)The investment income from the real estate funds includes (loss) income attributable to non-controlling interest of $(0.6) million for the three months ended June 30, 2019 and $1.1 million and $1.2 million for the six months ended June 30, 2020 and 2019, respectively.
Net investment income decreased $17.0 million, or 11%,from the real estate funds includes income attributable to $137.2non-controlling interest of $1.1 million for Second Quarter 2020 from $154.2 million for Second Quarter 2019. The decrease was primarily driven by lower cash yields and a decrease in yields on other variable rate assets, lower income from a decrease in the valuation of certain alternative investments adversely impacted by the COVID-19 pandemic and unfavorable foreign exchange.three months ended March 31, 2020.
Net investment income decreased $27.3$7.3 million, or 9%, to $293.2$76.3 million for Six Months 2020First Quarter 2021 from $320.5$83.6 million for Six Months 2019.First Quarter 2020, primarily driven by a significant decrease in cash and short-term yields and lower yields on fixed income securities subsequent to First Quarter 2020. The decrease was primarily driven by lower cash yields and a decrease in yields on other variable rate assets,also due to lower income from real estate lowerinvestments and consolidated investment entities, partially offset by higher income from a decrease in the valuation of certain alternative investments adversely

impacted by the COVID-19 pandemic, unfavorable foreign exchange and an increase in investment expensesfair value of investments in connection with our strategic decision to outsource the management of the investment portfolio.limited partnerships.
As of June 30, 2020,March 31, 2021, we owned $68.1$19.4 million of securities guaranteed by financial guarantee insurance companies. Included in this amount was $58.2$13.0 million of municipal securities, whose credit rating was A+A with the guarantee, but would have had a rating of A-BB without the guarantee.
For more information on our investments, see Notes 107 and 128 to the Consolidated Financial Statements included elsewhere in this Report.
Catastrophe Reinsurance Program
43

In June 2020, we finalized our 2020 property catastrophe reinsurance program. 2020 reinsurance premiums for this program are estimated to be approximately $139.0 million pre-tax compared to approximately $163.0 million pre-tax for 2019, reflecting the exit from small commercial as well as a modest reduction in lender-placed exposure. Coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best. Actual reinsurance premiums will vary if exposure changes significantly from estimates or if reinstatement premiums are required due to catastrophe events.
The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $930.0 million of coverage in excess of $80.0 million retention per event. In addition, it includes multi-year reinsurance contracts covering almost 50% of the U.S. program over the next two to five years, reducing volatility in future reinsurance costs. All layers of the program allow for one automatic reinstatement, except the first layer, which has two reinstatements and which covers the first $30.0 million of losses in excess of the $80.0 million retention. The 2020 program also maintains a cascading feature that provides multi-event protection in which higher coverage layers drop down to $110.0 million as the lower layers and reinstatement limit are exhausted. When combined with the Florida Hurricane Catastrophe Fund, the program is covered for gross Florida losses of up to $1.15 billion.
The 2020 catastrophe reinsurance program also includes Caribbean protection of up to $175.0 million in excess of a $20.0 million retention, as well as Latin America protection of up to $170.0 million in excess of a $7.0 million retention, which renewed on July 1, 2020.

Liquidity and Capital Resources
COVID-19 did not materially impact our liquidity and capital resources during Second Quarter 2020. Throughout this period, we believe our liquidity remained strong. As of June 30, 2020, we had $357.4 million of holding company liquidity and $200.0 million that we drew from our revolving credit facility in March to strengthen our liquidity position and capital flexibility. Given our performance year-to-date and improved visibility into the ongoing impacts of COVID-19 on our business, we fully repaid the credit facility loan in July 2020, as further described below. Refer to the risk factor disclosed in Item 8.01 of our Current Report on Form 8-K filed on May 5, 2020 for a discussion of COVID-19 related factors that could impact our liquidity and capital resources in the future.
The CARES Act, which was enacted on March 27, 2020, includes measures to assist companies in response to the COVID-19 pandemic. These measures include the ability to carry back net operating losses to prior years taxed at higher rates and defer the due dates of tax payments. Pursuant to the CARES Act, we carried back net operating losses to 2013 and 2014, resulting in a refund claim of $198.4 million. We also deferred our First Quarter 2020 and Second Quarter 2020 federal estimated tax payments and payments related to the employer’s portion of social security tax in 2020. This will have the effect of increasing cash outlays for these taxes during the second half of 2020, 2021 and 2022. In July 2020, we received the full amount of the refund plus interest related to the net operating losses we carried back under the CARES Act, a portion of which will be included in third quarter 2020 holding company liquidity and will largely consist of the $84.4 million tax benefit the Company recorded in First Quarter 2020 and Second Quarter 2020. We continue to monitor and assess the potential tax impact of this and other COVID-19-related legislation on our liquidity, financial position and results of operations.
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 insurance subsidiaries’ ability to pay such dividends and to make such other payments will be limitedis regulated by applicable lawsthe states and regulations of the jurisdictionsterritories in which our subsidiaries are domiciled, which subject our subsidiaries to significant regulatory restrictions. Thedomiciled. These dividend requirements and regulations vary from jurisdiction to jurisdiction and by type of insurance provided by the applicable subsidiary. These laws and regulationssubsidiary, but generally require among other

things, our insurance subsidiaries to maintain minimum solvency requirements and limit the amount of dividends theythese subsidiaries can pay to the holding company. Regulatory actions in response to COVID-19 could further restrict our insurance subsidiaries’ ability to pay us dividends. 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”growth” and “—Macroeconomic, Political and Global Market Risks—The COVID-19 pandemic and measures taken in response thereto may adversely affect our business, results of operations and financial condition” in our 20192020 Annual Report and the risk factor disclosed in Item 8.01 of our Current Report on Form 8-K filed on May 5, 2020.Report. Along with solvency regulations, the primary driver in determining the amount of capital used for dividends is the level of capital needed to maintain desired financial strength ratings from A.M. Best Company (“A.M. Best”).
Regulators or rating agencies could become more conservative in their methodology and criteria, increasing capital requirements for our insurance subsidiaries and may base these changes using different factors including industry studies, management actions or market conditions. The rating agencies’ assessment of the Company may consider the results of internally developed stress testing models and potential impacts to our earnings and capital, including from COVID-19 and the associated economic environment.capital. 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 company subsidiaries could adversely affect our results of operations and financial condition” in our 20192020 Annual Report.
For the year ending December 31, 2020,2021, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us, under applicable laws and regulations currently in effect and without prior regulatory approval, is $423.7$544.7 million. This amount includes $81.6 million from subsidiaries included in the disposal business which is subject to additional restrictions pursuant to the Global Preneed transaction agreement that would reduce the maximum amount of dividends without prior regulatory approval to $52.5 million from such subsidiaries. In addition, our international and non-insurance subsidiaries provide additional sources of dividends.
Holding Company
As of June 30, 2020,March 31, 2021, we had approximately $357.4$332.0 million in holding company liquidity, which was $132.4$107.0 million above our targeted minimum level of $225.0 million. The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of corporate operating and interest expenses and Mandatory Convertible Preferred Stock (“MCPS”) dividends.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 $681.0$448.4 million of holding company investment securities and cash, which we are not otherwise holding for a specific purpose as of the balance sheet date. “Holding company liquidity” excludes the $200.0 million we drew down from our Credit Facility in March 2020 as the proceeds were for risk management purposes only. The loan was repaid in July 2020. We can use thesuch assets that comprise holding company liquidity for stock repurchases, stockholder dividends, acquisitions and other corporate purposes.
Dividends or returns of capital paid by our subsidiaries, net of infusions and excluding amounts used for acquisitions or received for dispositions, were approximately $284.0$183.0 million for Six Months 2020.First Quarter 2021. In 2019,2020, dividends, net of infusions and excluding amounts used for acquisitions or received for dispositions, made to the holding company were $748.0 million.$821.0 million (including approximately $31.0 million of dividends from subsidiaries, net of infusions, included in the disposal business).
In addition to paying expenses and making interest payments on indebtedness, and making dividend payments on our preferred stock, our capital management strategy provides for several uses of the cash generated by our subsidiaries, including returning capital to common stockholders through share repurchases and dividends, investing in our business to support growth in targeted areas and making prudent and opportunistic acquisitions. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions. During Six Months 2020First Quarter 2021 and the year ended December 31, 2019,2020, we made common stock repurchases and paid dividends to our common stockholders of $160.7$79.7 million and $426.3$454.4 million, respectively. We expect to deploy capital primarily to support business growth, fund other investments and return capital to shareholders, subject to Board of Directors (the “Board”) approval and market conditions. In addition, as previously disclosed in March 2021 in connection with the Global Preneed transaction, we intend to return 75% of the expected net proceeds of $1.2 billion to shareholders through share repurchases within one year of closing, subject to Board approval.
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In May 2020, we soldconnection with the sale of our minority interests in Iké and terminated our obligations to purchase the remaining shares of Iké (collectively, the “Sale”), recognizing a net loss on sale of $3.9 million pre-tax and $2.9 million after-tax. In connection with the sale,in May 2020, we provided $34.0 million of financing to Iké Grupo in an aggregate principal amountthe form of $34.0 million (the “Iké Loan”). Thethe Iké Loan matures in May 2025, bears floating interest at a rate equal to three-month LIBOR plus 4.25% per annum payable quarterly and provides for quarterly principal amortization payments through the maturity date.
For the three months ended June 30, 2020, net cash outflows related to the Sale were $85.3 million, including net proceeds paid of $73.3 million andLoan. In April 2021, the Iké Loan of $34.0 million, less cash inflows of $22.0 million upon settling a financial derivative we had entered intowas prepaid in connection with our agreement to sell our interests in Iké. The financial derivative had provided an economic hedge against declines in the Mexican Peso relative to the U.S. Dollar since the purchase price was to be paid in Mexican Pesos. See Note 5 in the accompanying Notes to Consolidated Financial Statements elsewhere in this Report.
On May 1, 2020, we completed our acquisition of AFAS, a provider of finance and insurance products and services including vehicle service contracts, guaranteed asset protection insurance and other ancillary products sold directly through a

network of nearly 600 franchised dealership clients across 40 states, for total consideration of $176.9 million. See Note 4 in the accompanying Notes to Consolidated Financial Statements elsewhere in this Report.full.
In management’s opinion, dividends from our subsidiaries and other expected cash inflows together with our income and gains from our investment portfolio and cash and liquid assets on hand will provide sufficient liquidity to meet our needs in the ordinary course of business.
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’ excess 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 large, 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.
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 preference.appetite. Scenario testing of significant liability assumptions and new business projections is also performed. Specific to COVID-19, several scenarios around impact on near term asset and liability projections, including new business, were modeled and evaluated.
Our liabilities generally have limited policyholder optionality, which means that the timing of payments is relatively insensitive to the interest rate environment. In addition, our investment portfolio is largely comprised of highly liquid 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. Therefore, we believe we have limited exposure to disintermediation risk.
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 five-year senior unsecured $450.0 million revolving credit agreement (the “Credit Facility”) with a syndicate of banks arranged by JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association (of which $241.0$445.5 million was available as of June 30, 2020)March 31, 2021). In addition, in January 2018,2021, we filed an automatically effective shelf registration statement on Form S-3 with the SEC. This registration statement allows us to issue equity, debt or other types of securities through one or more methods of distribution. The terms of any offering would be established at the time of the offering, subject to market conditions. If we decide to make an offering of securities, we will consider the nature of the cash requirement as well as the cost of capital in determining what type of securities we may offer.
Dividends and Repurchases
We paid dividends of $0.63$0.66 per common share on June 16, 2020March 15, 2021 to stockholders of record as of May 26, 2020February 22, 2021 and dividends of $1.6250 per share of MCPSour Mandatory Convertible Preferred Stock (“MCPS”) on JuneMarch 15, 20202021 to stockholders of record as of JuneMarch 1, 2020. On July 9, 2020,2021. As described below, the Board declared a quarterly dividend of $0.63 perMCPS converted into common share payable on September 22, 2020 to stockholders of record as of August 31, 2020 and a quarterly dividend of $1.6250 per share of MCPS payable on September 15, 2020 to stockholders of record as of September 1, 2020.stock in March 2021. Any determination to pay future dividends on our outstanding common stock will be at the discretion of the Board and will be dependent upon various factors, including: our subsidiaries’ payments of dividends and other statutorily permissible payments to us; our results of operations and cash flows; our financial condition and capital requirements; general business conditions and growth prospects; any legal, tax, regulatory and contractual restrictions on the payment of dividends; and other factors the Board deems relevant, including the impact of COVID-19 on our business. Payments of dividends on shares of common stock are subject to the preferential rights of the MCPS.relevant. The Credit Facility also contains limitations on our ability to pay dividends to our stockholders if we are in default, or such dividend payments would cause us to be in default, of our obligations thereunder. In addition, if we defer the payment of interest on our Subordinated Notes (as defined below), we generally may not make payments on our capital stock.

In January 2021, the Board authorized a new share repurchase program for up to $600.0 million of the Company’s outstanding common stock.
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During Six Months 2020,First Quarter 2021, the Company repurchased 734,967308,000 shares of our outstanding common stock at a cost of $83.1$41.5 million, exclusive of commissions. As of June 30, 2020, $403.2March 31, 2021, $745.0 million aggregate cost at purchase remained unused under the existing Board repurchase authorization.authorizations. The timing and the amount of future repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factors, including the impact of COVID-19 on our business.factors.
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 and preferred stock.
Mandatory Convertible Preferred Stock
In March 2018, we issued 2,875,000 shares of our 6.50% MCPS, with a par value of $1.00 per share. EachIn March 2021, each outstanding share of MCPS will convertconverted automatically on March 15, 2021 into between 0.9385 (the “minimum conversion rate”) and 1.12620.9405 shares of common stock, subject to customary anti-dilution adjustments. At any time prior to March 2021, holders may elect to convert each share of MCPS intoor 2,703,911 shares of common stock at the minimum conversion rate or in the eventtotal plus an immaterial amount of a fundamental change at the specified rates definedcash in the Certificatelieu of Designations of the MCPS.
fractional shares. Dividends on the MCPS will bewere payable on a cumulative basis when, as and if declared, at an annual rate of 6.50% of the liquidation preference of $100.00 per share. We may pay declared dividends in cash or, subject to certain limitations, in shares of our common stock, or in any combination of cash and shares of our common stock quarterly, commencing in June 2018 and ending in March 2021. No dividend or distribution may be declared or paid on common stock or any other class or series of junior stock, and no common stock or any other class or series of junior stock or parity stock may be purchased, redeemed or otherwise acquired for consideration unless all accumulated and unpaid dividends on the MCPS for all preceding dividend periods have been declared and paid in full, subject to certain limited exceptions. We paid preferred stock dividends of $4.6$4.7 million forin each of SecondFirst Quarter 20202021 and SecondFirst Quarter 2019, and $9.3 million for each of Six Months 2020 and Six Months 2019.2020. For additional information regarding the MCPS, see Note 1713 in the Consolidated Financial Statements included elsewhere in this Report.
Outstanding Debt
The following table shows the principal amount and carrying value of our outstanding debt, less unamortized discount and issuance costs as applicable, as of June 30, 2020March 31, 2021 and December 31, 2019:2020:
March 31, 2021December 31, 2020
Principal AmountCarrying ValuePrincipal AmountCarrying Value
Floating Rate Senior Notes due March 2021 (1)$— $— $50.0 $50.0 
4.00% Senior Notes due March 2023350.0 349.0 350.0 348.9 
4.20% Senior Notes due September 2023300.0 298.5 300.0 298.4 
4.90% Senior Notes due March 2028300.0 297.2 300.0 297.2 
3.70% Senior Notes due February 2030350.0 347.1 350.0 347.0 
6.75% Senior Notes due February 2034275.0 272.3 275.0 272.3 
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2)400.0 395.6 400.0 395.4 
5.25% Subordinated Notes due January 2061250.0 244.0 250.0 243.7 
Total Debt$2,203.7 $2,252.9 
 June 30, 2020 December 31, 2019
 Principal Amount Carrying Value Principal Amount Carrying Value
Floating Rate Senior Notes due March 2021 (1)$50.0
 $49.9
 $50.0
 $49.9
4.00% Senior Notes due March 2023350.0
 348.7
 350.0
 348.5
4.20% Senior Notes due September 2023300.0
 298.1
 300.0
 297.8
4.90% Senior Notes due March 2028300.0
 297.0
 300.0
 296.8
3.70% Senior Notes due February 2030350.0
 346.9
 350.0
 346.8
6.75% Senior Notes due February 2034275.0
 272.2
 275.0
 272.1
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2)400.0
 395.2
 400.0
 395.0
Total Senior and Subordinated Notes  2,008.0
   2,006.9
Revolving Credit Facility (3)200.0
 200.0
 —
 —
Total Debt  $2,208.0
   $2,006.9
(1)The outstanding aggregate principal amount was repaid in January 2021. Prior to repayment, these senior notes bore floating interest at a rate equal to three-month LIBOR plus 1.25% per annum.
(1)Bears floating interest at a rate equal to three-month LIBOR plus 1.25% per annum.
(2)Bears a 7.00% annual interest rate to March 2028 and an annual interest rate equal to three-month LIBOR plus 4.135% thereafter.
(3)Borrowings under the Credit Facility for Second Quarter 2020 bore a floating interest rate initially equal to three-month LIBOR plus 1.50% per annum. The loan was continued upon expiration of the initial interest period at a floating rate equal to one-month LIBOR plus 1.50% per annum.
(2)Bears a 7.00% annual interest rate to March 2028 and an annual interest rate equal to three-month LIBOR plus 4.135% thereafter.
Senior and Subordinated Notes

2030 Senior Notes: In August 2019, we issued senior notes with an aggregate principal amount of $350.0 million which bear interest at a rate of 3.70% per year, mature in February 2030 and were issued at a 0.035% discount to the public (the “2030 Senior Notes”). Interest is payable semi-annually in arrears beginning in February 2020. Prior to November 2029, we may redeem the 2030 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, we may redeem the 2030 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
We used the net proceeds from the offering, together with cash on hand, to purchase $100.0 million of our 6.75% senior notes due 2034 in a cash tender offer, to redeem $250.0 million of our floating rate senior notes due 2021 and to pay related premiums, fees and expenses.
2021, 2023 and 2028 Senior Notes
In March 2018, we issued the following three series of senior notes with an aggregate principal amount of $900.0 million:
•
•2021 Senior Notes: The first series of senior notes is $300.0 million in principal amount and bore floating interest at a rate equal to three-month LIBOR plus 1.25% per year (the “2021 Senior Notes”). Interest on the 2021 Senior
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Notes was payable quarterly. Commencing on or after March 2019, we could redeem the 2021 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. In August 2019, we redeemed $250.0 million of the $300.0 million outstanding aggregate principal amount of the 2021 Senior Notes, plus accrued and unpaid interest to the redemption date. The remaining outstanding aggregate principal amount of $50.0 million, plus accrued and unpaid interest to the redemption date, was repaid in January 2021 in advance of the original maturity in March 2021.
•2023 Senior Notes: The second series of senior notes is $300.0 million in principal amount, bears interest at 4.20% per year, matures in September 2023 and was issued at a 0.233% discount to the public (the “2023 Senior Notes”). Interest on the 2023 Senior Notes is payable semi-annually. Prior to August 2023, we may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, we may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
•: The first series of senior notes is $300.0 million in principal amount, bears floating interest at a rate equal to three-month LIBOR plus 1.25% (1.53% as of June 30, 2020) per year and matures in March 2021 (the “2021 Senior Notes”). Interest on the 2021 Senior Notes is payable quarterly. Commencing on or after March 2019, we may redeem the 2021 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. In August 2019, we redeemed $250.0 million of the $300.0 million outstanding aggregate principal amount of the 2021 Senior Notes.
•
2023 Senior Notes: The second series of senior notes is $300.0 million in principal amount, bears interest at 4.20% per year, matures in September 2023 and was issued at a 0.233% discount to the public (the “2023 Senior Notes”). Interest on the 2023 Senior Notes is payable semi-annually. Prior to August 2023, we may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, we may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
•
2028 Senior Notes: The third series of senior notes is $300.0 million in principal amount, bears interest at 4.90% per year, matures in March 2028 and was issued at a 0.383% discount to the public (the “2028 Senior Notes”). Interest on the 2028 Senior Notes is payable semi-annually. Prior to December 2027, we may redeem the 2028 Senior Notes at any time in whole or from time to time in part of a make-whole premium plus accrued and unpaid interest. On or after that date, we may redeem the 2028 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
The interest rate payable on each of the 2021 Senior Notes, theremaining 2023 Senior Notes, the 2028 Senior Notes and the 2030 Senior Notes will be subject to adjustment from time to time, if either Moody’s Investor Service, Inc. (“Moody’s”) or S&P Global Ratings, a division of S&P Global Inc. (“S&P”) downgrades the credit rating assigned to such series of senior notes to Ba1 or below or to BB+ or below, respectively, or subsequently upgrades the credit ratings once the senior notes are at or below such levels. The following table details the increase in interest rate over the issuance rate by rating with the impact equal to the sum of the number of basis points next to such rating for a maximum increase of 200 basis points over the issuance rate:
Rating Agencies
Rating LevelsMoody’s (1)S&P (1)Interest Rate Increase (2)
1Ba1BB+25 basis points
2Ba2BB50 basis points
3Ba3BB-75 basis points
4B1 or belowB+ or below100 basis points
(1)Including the equivalent ratings of any substitute rating agency.
(2)
(1)Including the equivalent ratings of any substitute rating agency.
(2)Applies to each rating agency individually.
Subordinated Notes
In March 2018, we issued fixed-to-floating rate subordinated notes due March 2048 with a principal amount of $400.0 million (the “Subordinated Notes”), which bear interest from March 2018 to March 2028 at an annual rate of 7.00%, payable semi-annually. The Subordinated Notes will bear interest at an annual rate equal to three-month LIBOR plus 4.135%, payable quarterly, beginning in June 2028. On or after March 2028, we may redeem the Subordinated Notes in whole at any time or in part from time to time, at a redemption price equal to their principal amount plus accrued and unpaid interest provided that if

they are not redeemed in whole, a minimum amount must remain outstanding. At any time prior to March 2028, we may redeem the Subordinated Notes in whole but not in part after the occurrence of a tax event, rating agency event or regulatory capital event as defined in the global note representing the Subordinated Notes, at a redemption price equal to (i) with respect to a rating agency event 102% of their principal amount and (ii) with respect to a tax event or regulatory capital event, their principal amount plus accrued and unpaid interest.
In addition, so long as no event of default with respect to the Subordinated Notes has occurred and is continuing, we have the right, on one or more occasions, to defer the payment of interest on the Subordinated Notes for one or more consecutive interest periods for up to five years as described in the global note representing the Subordinated Notes. During a deferral period, interest will continue to accrue on the Subordinated Notes at the then-applicable interest rate. At any time when we have given notice of our election to defer interest payments on the Subordinated Notes, we generally may not make payments on or redeem or purchase any shares of our capital stock or any of our debt securities or guarantees that rank upon our liquidation on a parity with or junior to the Subordinated Notes, subject to certain limited exceptions.
Other Notesindividually.
In March 2013, we issued two series of senior notes with an aggregate principal amount of $700.0 million. The first series was $350.0 million in principal amount, bore interest at 2.50% per year and was repaid at maturity in March 2018. The second series is $350.0 million in principal amount and was issued at a 0.365% discount to the public. This series bears interest at 4.00% per year and matures in March 2023. Interest is payable semi-annually. We may redeem the outstanding series of senior notes in whole or in part at any time and from time to time before maturity at the redemption price set forth in the global note representing the outstanding series of senior notes.
In February 2004, we issued senior notes with an aggregate principal amount of $475.0 million at a 0.61% discount to the public, which bear interest at 6.75% per year and matures in February 2034. Interest is payable semi-annually. These senior notes are not redeemable prior to maturity. In December 2016 and August 2019, we completed cash tender offers of $100.0 million each in aggregate principal amount of such senior notes. A loss on extinguishment of debt of $31.4 million was reported in the third quarter of 2019.
Subordinated Notes
2061 Subordinated Notes: In November 2020, we issued subordinated notes due January 2061 with a principal amount of $250.0 million, which bear interest at an annual rate of 5.25% (the “2061 Subordinated Notes”). Interest is payable quarterly in arrears beginning in April 2021. On or after January 2026, we may redeem the 2061 Subordinated Notes in whole at any time or in part from time to time, at a redemption price equal to their principal amount plus accrued and unpaid interest, provided that if they are not redeemed in whole, a minimum amount must remain outstanding. At any time prior to January 2026, we may redeem the 2061 Subordinated Notes in whole but not in part, within 90 days after the occurrence of a tax event, rating agency
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event or regulatory capital event as defined in the global note representing the 2061 Subordinated Notes, at a redemption price equal to (i) with respect to a rating agency event, 102% of their principal amount and (ii) with respect to a tax event or a regulatory capital event, their principal amount plus accrued and unpaid interest. See below, under 2048 Subordinated Notes (as defined below), for more information on terms applicable to both series.
2048 Subordinated Notes: In March 2018, we issued fixed-to-floating rate subordinated notes due March 2048 with a principal amount of $400.0 million (the “2048 Subordinated Notes”), which bear interest from March 2018 to March 2028 at an annual rate of 7.00%, payable semi-annually. The 2048 Subordinated Notes will bear interest at an annual rate equal to three-month LIBOR plus 4.135%, payable quarterly, beginning in June 2028. On or after March 2028, we may redeem the 2048 Subordinated Notes in whole at any time or in part from time to time, at a redemption price equal to their principal amount plus accrued and unpaid interest provided that if they are not redeemed in whole, a minimum amount must remain outstanding. At any time prior to March 2028, we may redeem the 2048 Subordinated Notes in whole but not in part after the occurrence of a tax event, rating agency event or regulatory capital event as defined in the global note representing the 2048 Subordinated Notes, at a redemption price equal to (i) with respect to a rating agency event 102% of their principal amount and (ii) with respect to a tax event or regulatory capital event, their principal amount plus accrued and unpaid interest.
In addition, so long as no event of default with respect to the 2048 Subordinated Notes and 2061 Subordinated Notes (together, the “Subordinated Notes”) has occurred and is continuing, we have the right, on one or more occasions, to defer the payment of interest on the Subordinated Notes for one or more consecutive interest periods for up to five years as described in the global note representing the Subordinated Notes. During a deferral period, interest will continue to accrue on the Subordinated Notes at the then-applicable interest rate. At any time when we have given notice of our election to defer interest payments on the Subordinated Notes, we generally may not make payments on or redeem or purchase any shares of our capital stock or any of our debt securities or guarantees that rank upon our liquidation on a parity with or junior to the Subordinated Notes, subject to certain limited exceptions.
Credit Facility and Commercial Paper Program
We have a Credit Facility that 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 $450.0 million, which may be increased up to $575.0 million. The Credit Facility is available until December 2022, provided we are in compliance with all covenants. The Credit Facility has a sub-limit 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.
On March 27, 2020, we drew down $200.0 million from our Credit Facility. We repaid the loan on July 29, 2020, at the end of the then-current interest period, during which the loan bore interest at a floating rate equal to one-month LIBOR plus 1.50% per annum. The proceeds from the draw were held at the holding company as of June 30, 2020, but have been excluded from the $357.4 million of holding company liquidity as they were for risk management purposes only.
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-3 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 $241.0$445.5 million out of the $450.0 million was available as of June 30, 2020,March 31, 2021, due to $200.0$4.5 million of borrowings outstanding under the Credit Facility and $9.0 million of outstanding letters of credit.credit outstanding.
Retirement and Other Employee Benefits
For information on our retirement and other employee benefits, see Note 1915 to the Consolidated Financial Statements, included elsewhere in this Report.
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Cash Flows
The table below shows our net cash flows for the periods indicated:

 For the Six Months Ended June 30,
Net cash provided by (used in):2020 2019
Operating activities$292.2
 $725.7
Investing activities(32.2) (609.6)
Financing activities12.0
 118.6
Effect of exchange rate changes on cash and cash equivalents(1.6) 1.7
Net change in cash$270.4
 $236.4
 For the Three Months Ended March 31,
Net cash provided by (used in):20212020
Operating activities - continuing operations$(454.0)$(167.5)
Operating activities - discontinued operations35.3 43.8 
Operating activities(418.7)(123.7)
Investing activities - continuing operations63.2 237.7 
Investing activities - discontinued operations(48.7)(55.8)
Investing activities14.5 181.9 
Financing activities - continuing operations(153.0)91.4 
Financing activities - discontinued operations— — 
Financing activities(153.0)91.4 
Effect of exchange rate changes on cash and cash equivalents - continuing operations— (16.4)
Effect of exchange rate changes on cash and cash equivalents - discontinued operations0.2 (0.4)
Effect of exchange rate changes on cash and cash equivalents0.2 (16.8)
Net change in cash$(557.0)$132.8 
We typically generate operating cash inflows from premiums collected from our insurance products, fees received for services and income received from our investments while outflows 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 byused in operating activities for continuing operations was $292.2$454.0 million for Six Months 2020First Quarter 2021 compared to $725.7$167.5 million for Six Months 2019.First Quarter 2020. The decreaseincrease in net cash provided byused in operating activities was primarily due to lower premiums collected from our mobile business due to timing. Net cash used in operating activities for both First Quarter 2021 and First Quarter 2020 was also impacted by the timing of certain cash payments and business activities from our Global Lifestyle business. The primary factors contributing to the decrease in cash from operations included the absence of a prior year receipt of prepaid premiums for our Japan business given subsequent changes in payment terms under the program, an increase in advancedfollow-on commission payments associated with fourth quarter 2020 premiums and full year programs as a result of subscriber growth from mobile protection programs and growth from our Global Automotive business, the timing of cumulativewell as payments to a vendor related to a program initiated in 2019various vendors for acquiringthe acquisition of mobile devices used to meet insurance claims or generate profits through sales to third parties, and an increase in follow-on commission payments associated with both higher fourth quarter 2019 premiums and 2019 full year programs. These decreases were partially offset by higher collections of premium receivable balances mostly due to timing.parties.
Net cash used inprovided by investing activities for continuing operations was $32.2$63.2 million for Six Months 2020First Quarter 2021 compared to $609.6$237.7 million for Six Months 2019.First Quarter 2020. The decrease in cash used inprovided by investing activities was primarily driven by the ongoing management of our investment portfolio. Additionally, net cash provided by investing activities for First Quarter 2021 included a $60.1 million net cash outflow for transfers between the disposal business and business in continuing operations related to investments that will not be included in the sale. Net cash provided by investing activities for First Quarter 2020 included a $51.6 million increase in net cash provided by our consolidated investment entities (“CIEs”) related to the timing of purchases of securities in connection with CLO structures launched in 2019. The decrease was partially offset by $135.8 million of cash used for the AFAS acquisition, which was partially offset by AFAS cash acquired of $39.6 million, and $73.3 million of net cash used for the sale of our interests in Iké in Second Quarter 2020. For additional information on CIEs, the AFAS acquisition and our sale of Iké see Notes 11, 4 and 5, respectively, to the Consolidated Financial Statements included elsewhere in the Report. The remaining changes were due to the ongoing management of our investment portfolio.the CLO structures.
Net cash used in financing activities for continuing operations was $153.0 million for First Quarter 2021 compared to net cash provided by financing activities was $12.0for continuing operations of $91.4 million for Six Months 2020 compared to $118.6 million for Six Months 2019.First Quarter 2020. The decrease in net cash provided by financing activities was primarilymainly due to $290.2 millionthe absence of cash from our CIEs provided in first quarter 2019, net of repayments of borrowings to short-term warehouse facilities primarily related to the timing of CLO structures launched each year. This was partially offset by a $200.0 million drawdown from our Credit Facility. We fully repaidFacility in First Quarter 2020 which was taken as a precautionary measure to strengthen our liquidity position and capital flexibility due to the loanuncertainty caused by the COVID-19 pandemic. The decrease was also due to the $50.0 million repayment of our 2021 Senior Notes in July 2020.First Quarter 2021. For additional information, see Note 1410 to the Consolidated Financial Statements included elsewhere in the Report.
Changes in cash flows from the operating and investing activities from our discontinued operations were fairly consistent in First Quarter 2021 and First Quarter 2020.
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.
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The table below shows our cash outflows for interest and dividends for the periods indicated:

For the Six Months Ended June 30, For the Three Months Ended March 31,
2020 2019 20212020
Interest paid on debt$52.6
 $53.3
Interest paid on debt$50.5 $50.8 
Common stock dividends77.6
 75.7
Common stock dividends38.2 38.0 
Preferred stock dividends9.3
 9.3
Preferred stock dividends4.7 4.7 
Total$139.5
 $138.3
Total$93.4 $93.5 
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 $12.1$7.2 million and $7.6 million of letters of credit outstanding as of June 30, 2020March 31, 2021 and December 31, 2019.2020, respectively.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that are reasonably likely to have a material effect on the financial condition, results of operations, liquidity or capital resources of the Company.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk
Our 20192020 Annual Report described our Quantitative and Qualitative Disclosures About Market Risk. As of June 30, 2020,March 31, 2021, there were no material changes to the assumptions or risks. Upon the closing of the Global Preneed transaction, we expect our interest rate risk to significantly decrease in connection with the sale of the Global Preneed-related securities in our investment portfolio.

Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), has evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of June 30, 2020.March 31, 2021. Based on such evaluation, management, including our CEO and CFO, has concluded that as of June 30, 2020,March 31, 2021, our disclosure controls and procedures were effective and provide reasonable assurance that information we are required to disclose in our reports pursuant to Rule 13a-15(e) or 15d-15(e) under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms. Our CEO and CFO also have concluded that as of June 30, 2020,March 31, 2021, information that we are required to disclose in our reports under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.
Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f) under the Exchange Act) during the quarterly period ended June 30, 2020March 31, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II
OTHER INFORMATION
Item 1. Legal Proceedings
For a description of any material pending legal and regulatory mattersproceedings in which we are involved, see “Commitments and Contingencies—Legal and Regulatory Matters” in Note 2016 to the Consolidated Financial Statements included elsewhere in this Report, which is hereby incorporated by reference.

Item 1A. Risk Factors
Certain factors may have a material adverse effect on our business, financial condition, results of operations and cash flows, and you should carefully consider them. It is not possible to predict or identify all such factors. For a discussion of potential risks or uncertainties affecting us, please refer to the information under the heading “Item 1A—Risk Factors” in our 20192020 Annual Report and the risk factor disclosed in Item 8.01 of our Current Report on Form 8-K filed on May 5, 2020.Report. Additional risks and uncertainties that are not yet identified or that we currently believe to be immaterial may also materially harm our business, financial condition, results of operations and cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities:
(In millions, except number of shares and per share amounts)
Period in 2021Total
Number of
Shares Purchased		Average Price
Paid Per Share		Total Number of Shares
Purchased as Part of
Publicly Announced
Programs (1)		Approximate
Dollar Value of
Shares that
May Yet be
Purchased
Under the
Programs (1)
January 1 - January 3195,000 $136.96 95,000 $773.5 
February 1 - February 2998,000 129.10 98,000 760.8 
March 1 - March 31115,000 137.58 115,000 745.0 
Total308,000 $134.69 308,000 $745.0 
(1)Shares purchased pursuant to the November 2018 publicly announced share repurchase authorization of up to $600.0 million of outstanding common stock. In January 2021, we publicly announced that the Board authorized the repurchase of up to an additional $600.0 million aggregate cost at purchase of our outstanding common stock. As of March 31, 2021, approximately $745.0 million aggregate cost at purchase remained unused under both authorizations.

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(In millions, except number of shares and per share amounts)
Period in 2020
Total
Number of
Shares Purchased
 
Average Price
Paid Per Share
 
Total Number of Shares
Purchased as Part of
Publicly Announced
Programs (1)
 
Approximate
Dollar Value of
Shares that
May Yet be
Purchased
Under the
Programs (1)
January 1 - January 31117,870
 $131.23
 117,870
 $470.8
February 1 - February 29134,000
 136.52
 134,000
 452.5
March 1 - March 31229,097
 102.30
 229,097
 429.0
April 1 - April 30162,000
 104.96
 162,000
 412.1
May 1 - May 3192,000
 96.46
 92,000
 403.2
June 1 - June 30—
 —
 —
 403.2
Total734,967
 $113.03
 734,967
 $403.2
(1)Shares purchased pursuant to the November 5, 2018 publicly announced share repurchase authorization of up to $600.0 million of outstanding common stock. As of June 30, 2020, approximately $403.2 million remained under the November 2018 authorization.


Item 6. Exhibits
The following exhibits either (a) are filed with this Report or (b) have previously been filed with the SEC and are incorporated herein by reference to those prior filings.


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The following materials from the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended
June 30, 2020,
March 31, 2021, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows and (vi) Notes to the Consolidated Financial Statements.
104Cover Page Interactive Data File (embedded within the Inline XBRL document).
*Management contract or compensatory plansplan.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. 

ASSURANT, INC.
By:
/s/     ALAN B. COLBERG      
Name:Alan B. Colberg
Title:President and Chief Executive Officer
By:/s/    RICHARD S. DZIADZIO
Name:Richard S. Dziadzio
Title:Executive Vice President and Chief Financial Officer

Date: August 7, 2020

May 6, 2021
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