UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q



x	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, ~~2017~~2018



¨	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)



Delaware	001-31978	39-1126612
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

28 Liberty Street, 41st Floor

New York, New York 10005

(212) 859-7000

(Address, including zip code, and telephone number, including area code, of Registrant’s Principal Executive Offices)

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 x NO ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted 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 and post such files). YES x NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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	x	Accelerated filer	¨

Non-accelerated filer	¨ (Do not check if a smaller reporting company)	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 x

The number of shares of the registrant’s Common Stock outstanding at ~~July 28, 2017~~August 3, 2018 was ~~53,886,783.~~62,839,361.

ASSURANT, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, ~~2017~~2018

TABLE OF CONTENTS


Item Number		Page Number		Page Number
	PART I FINANCIAL INFORMATION		PART I FINANCIAL INFORMATION

1.	Financial Statements (unaudited) of Assurant, Inc.:		Consolidated Financial Statements (unaudited) of Assurant, Inc.:

	Consolidated Balance Sheets (unaudited) at June 30, 2017 and December 31, 2016	2	Consolidated Balance Sheets (unaudited) at June 30, 2018 and December 31, 2017	2

	Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2017 and 2016	3	Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2018 and 2017	4

	Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2017 and 2016	4	Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2018 and 2017	5

	Consolidated Statement of Changes in Stockholders’ Equity (unaudited) from December 31, 2016 through June 30, 2017	5	Consolidated Statement of Changes in Stockholders’ Equity (unaudited) from December 31, 2017 through June 30, 2018	6

	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2017 and 2016	6	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2018 and 2017	7

	Notes to Consolidated Financial Statements (unaudited) for the three and six months ended June 30, 2017 and 2016	7	Notes to Consolidated Financial Statements (unaudited)	9

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32	Management’s Discussion and Analysis of Financial Condition and Results of Operations	42

3.	Quantitative and Qualitative Disclosures About Market Risk	49	Quantitative and Qualitative Disclosures About Market Risk	64

4.	Controls and Procedures	49	Controls and Procedures	64

	PART II OTHER INFORMATION		PART II OTHER INFORMATION

1.	Legal Proceedings	50	Legal Proceedings	65

1A.	Risk Factors	50	Risk Factors	65

2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
5.			Other Information	65

6.	Exhibits	51	Exhibits	66

	Signatures	52	Signatures	67

Amounts are presented in United States of America (“U.S.”) dollars and all amounts are in millions, except number of shares and per share amounts.

Assurant, Inc.

Consolidated Balance Sheets (unaudited)

At June 30, ~~2017~~2018 and December 31, ~~2016~~2017


	June 30, 2017			December 31, 2016			June 30, 2018			December 31, 2017
	(in millions except number of shares and per share amounts)						(in millions except number of shares and per share amounts)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost - $8,706.6 in 2017 and $8,870.8 in 2016)	$	9,579.4		$	9,572.1
Equity securities available for sale, at fair value (cost - $356.9 in 2017 and $381.8 in 2016)	413.9			421.4
Fixed maturity securities available for sale, at fair value (amortized cost - $10,777.0 in 2018 and $8,756.5 in 2017)							$	11,297.5		$	9,662.6
Equity securities, at fair value (cost - $349.6 in 2018 and $316.3 in 2017)							385.8			368.0
Commercial mortgage loans on real estate, at amortized cost	624.0			624.0			720.1			670.2
Policy loans	37.7			38.5
Short-term investments	198.9			227.7			343.6			284.1
Other investments	786.3			595.3			642.2			568.6
Total investments	11,640.2			11,479.0			13,389.2			11,553.5
Cash and cash equivalents	848.2			1,032.0			1,253.7			996.8
Premiums and accounts receivable, net	1,336.3			1,218.0			1,512.7			1,237.3
Reinsurance recoverables	8,953.2			9,083.2			10,978.3			9,790.2
Accrued investment income	105.3			110.1			136.1			105.4
Deferred acquisition costs	3,326.6			3,267.4			3,882.7			3,484.5
Property and equipment, at cost less accumulated depreciation	355.5			343.6			370.6			347.6
Tax receivable	37.5			20.5			54.3			126.3
Goodwill	905.5			830.9			2,369.2			917.7
Value of business acquired	28.2			32.1			3,962.5			24.4
Other intangible assets, net	316.5			240.3			664.8			288.6
Other assets	426.8			359.7			623.7			387.1
Assets held in separate accounts	1,779.1			1,692.3			1,858.3			1,837.1
Assets of consolidated investment entities (1)							1,305.2			746.5
Total assets	$	30,058.9		$	29,709.1		$	42,361.3		$	31,843.0
Liabilities
Future policy benefits and expenses	$	10,278.1		$	10,112.9		$	10,386.0		$	10,397.4
Unearned premiums	6,718.3			6,626.5			14,505.0			7,038.6
Claims and benefits payable	3,093.3			3,301.2			3,503.1			3,782.2
Commissions payable	374.4			386.2			308.1			365.1
Reinsurance balances payable	118.7			95.3			324.1			145.3
Funds held under reinsurance	153.4			111.7			347.1			179.8
Deferred gains on disposal of businesses	170.1			232.2			94.7			128.1
Accounts payable and other liabilities	2,012.3			1,985.7			2,610.7			2,046.3
Debt	1,136.6			1,067.0			2,004.8			1,068.2
Liabilities related to separate accounts	1,779.1			1,692.3			1,858.3			1,837.1
Liabilities of consolidated investment entities (1)							1,086.5			573.4
Total liabilities	25,834.3			25,611.0			37,028.4			27,561.5
Commitments and contingencies (Note 15)
Commitments and contingencies (Note 18)
Stockholders’ equity
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 54,064,643 and 55,941,480 shares outstanding at June 30, 2017 and December 31, 2016, respectively	1.5			1.5
6.50% Series D mandatory convertible preferred stock, $1.00 par value, 2,875,000 shares authorized, 2,875,000 issued and outstanding at June 30, 2018							2.9			—
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 161,069,104 and 150,392,604 shares issued and 63,094,312 and 52,417,812 shares outstanding at June 30, 2018 and December 31, 2017, respectively							1.6			1.5
Additional paid-in capital	3,172.4			3,175.9			4,459.7			3,197.9
Retained earnings	5,500.7			5,296.7			5,846.3			5,697.3
Accumulated other comprehensive income	236.9			94.6
Treasury stock, at cost; 96,251,219 and 94,041,583 shares at June 30, 2017 and December 31, 2016, respectively	(4,686.9		)	(4,470.6		)
Total stockholders’ equity	4,224.6			4,098.1
Total liabilities and stockholders’ equity	$	30,058.9		$	29,709.1
Accumulated other comprehensive (loss) income							(137.9		)	234.0
Treasury stock, at cost; 97,974,792 shares at June 30, 2018 and December 31, 2017							(4,860.1		)	(4,860.1		)
Total Assurant, Inc. stockholders’ equity							5,312.5			4,270.6
Non-controlling interest							20.4			10.9
Total equity							5,332.9			4,281.5
Total liabilities and equity							$	42,361.3		$	31,843.0

Assurant, Inc.

Consolidated Balance Sheets (unaudited)

At June 30, 2018 and December 31, 2017


(1)	The following table presents information on assets and liabilities related to consolidated investment entities as of June 30, 2018 and December 31, 2017.



	June 30, 2018		December 31, 2017
	(in millions)
Assets
Cash and cash equivalents	$	35.0	$	69.8
Investments, at fair value	1,200.7		655.0
Other receivables	69.5		21.7
Total assets	$	1,305.2	$	746.5
Liabilities
Collateralized loan obligation notes, at fair value	941.2		450.7
Other liabilities	145.3		122.7
Total liabilities	$	1,086.5	$	573.4

See the accompanying Notes to ~~the~~ Consolidated Financial Statements

Assurant, Inc.

Consolidated Statements of Operations (unaudited)

Three and Six Months Ended June 30, ~~2017~~2018 and ~~2016~~2017


	Three Months Ended June 30,					Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016		2017			2016			2018			2017			2018			2017
	(in millions except number of shares and per share amounts)											(in millions except number of shares and per share amounts)
Revenues
Net earned premiums	$	1,115.3		$	1,202.3	$	2,165.6		$	2,617.5		$	1,338.3		$	1,115.3		$	2,463.2		$	2,165.6
Fees and other income	326.9			328.3		667.1			686.0			354.2			326.9			718.7			667.1
Net investment income	121.7			119.8		242.3			255.5			135.6			121.7			265.8			242.3
Net realized gains on investments, excluding other-than-temporary impairment losses	13.3			21.6		17.1			184.0
Total other-than-temporary impairment losses	(0.1		)	—		(0.5		)	(0.4		)
Portion of net gain recognized in other comprehensive income, before taxes	—			—		—			(0.3		)
Net other-than-temporary impairment losses recognized in earnings	(0.1		)	—		(0.5		)	(0.7		)
Amortization of deferred gains and gains on disposal of businesses	23.4			125.8		60.4			173.4
Gain on pension plan curtailment	—			—		—			29.6
Net realized (losses) gains on investments, excluding other-than-temporary impairment losses												(11.4		)	13.3			(10.9		)	17.1
Other-than-temporary impairment losses recognized in earnings												—			(0.1		)	—			(0.5		)
Amortization of deferred gains on disposal of businesses												15.0			23.4			33.5			60.4
Total revenues	1,600.5			1,797.8		3,152.0			3,945.3			1,831.7			1,600.5			3,470.3			3,152.0
Benefits, losses and expenses
Policyholder benefits	416.4			400.8		774.4			944.6			490.6			416.4			905.2			774.4
Amortization of deferred acquisition costs and value of business acquired	346.7			342.7		661.2			677.0			463.2			346.7			809.6			661.2
Underwriting, general and administrative expenses	646.3			803.6		1,297.6			1,720.9			773.6			646.3			1,493.2			1,297.6
Interest expense	12.4			15.2		25.0			29.7			26.0			12.4			47.5			25.0
Total benefits, losses and expenses	1,421.8			1,562.3		2,758.2			3,372.2			1,753.4			1,421.8			3,255.5			2,758.2
Income before provision for income taxes	178.7			235.5		393.8			573.1			78.3			178.7			214.8			393.8
Provision for income taxes	58.5			66.2		129.8			183.4			11.3			58.5			41.8			129.8
Net income	$	120.2		$	169.3	$	264.0		$	389.7		67.0			120.2			173.0			264.0
Less: Preferred stock dividends												(4.8		)	—			(4.8		)	—
Net income attributable to common stockholders												$	62.2		$	120.2		$	168.2		$	264.0

Earnings Per Share
Basic	$	2.18		$	2.72	$	4.74		$	6.12		$	1.09		$	2.18		$	3.05		$	4.74
Diluted	$	2.16		$	2.70	$	4.71		$	6.06		$	1.09		$	2.16		$	3.02		$	4.71
Dividends per share	$	0.53		$	0.50	$	1.06		$	1.00
Dividends per share of common stock												$	0.56		$	0.53		$	1.12		$	1.06
Dividends per share of preferred stock												$	1.68		$	—		$	1.68		$	—
Share Data
Weighted average shares outstanding used in basic per share calculations	55,230,367			62,244,778		55,713,172			63,665,856			57,060,313			55,230,367			55,125,584			55,713,172
Plus: Dilutive securities	279,531			478,514		361,980			608,153			204,095			279,531			2,147,844			361,980
Weighted average shares used in diluted per share calculations	55,509,898			62,723,292		56,075,152			64,274,009			57,264,408			55,509,898			57,273,428			56,075,152

See the accompanying Notes to ~~the~~ Consolidated Financial Statements

Assurant, Inc.

Consolidated Statements of Comprehensive Income (unaudited)

Three and Six Months Ended June 30, ~~2017~~2018 and ~~2016~~2017



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(in millions)
Net income	$	67.0		$	120.2		$	173.0		$	264.0
Other comprehensive (loss) income:
Change in unrealized gains on securities, net of taxes of $28.2, $(40.7), $76.0 and $(57.7), respectively	(105.9		)	73.9			(281.1		)	106.3
Change in unrealized gains on derivative transactions, net of taxes of $0.2 and $(5.4) for the three and six months ended June 30, 2018, respectively	(0.2		)	—			20.9			—
Change in other-than-temporary impairment losses, net of taxes of $0.4, $0.8, $1.3 and $1.0, respectively	(1.4		)	(1.5		)	(4.9		)	(1.8		)
Change in foreign currency translation, net of taxes of $1.0, $(0.9), $1.5 and $(1.3), respectively	(83.1		)	15.7			(73.9		)	37.5
Amortization of pension and postretirement unrecognized net periodic benefit cost, net of taxes of $(0.3), $(0.3), $(0.3) and $(0.2), respectively	1.0			0.5			1.0			0.3
Total other comprehensive (loss) income	(189.6		)	88.6			(338.0		)	142.3
Total comprehensive (loss) income	$	(122.6	)	$	208.8		$	(165.0	)	$	406.3

Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
(in millions)
Net income $ 120.2
$ 169.3
$ 264.0
$ 389.7
Other comprehensive income (loss):
Change in unrealized gains on securities, net of taxes of $(40.7), $(62.5), $(57.7) and $(77.3), respectively 73.9
115.9
106.3
145.8
Change in other-than-temporary impairment gains, net of taxes of $0.8, $(0.1), $1.0 and $0.6, respectively (1.5 ) 0.2
(1.8 ) (1.1 )
Change in foreign currency translation, net of taxes of $(0.9), $(0.1), $(1.3) and $(1.7), respectively 15.7
(14.5 ) 37.5
(2.7 )
Amortization of pension and postretirement unrecognized net periodic benefit cost, net of taxes of $(0.3), $(0.2), $(0.2) and $(35.9), respectively 0.5
0.4
0.3
66.6
Total other comprehensive income 88.6
102.0
142.3
208.6
Total comprehensive income $ 208.8
$ 271.3
$ 406.3
$ 598.3

See the accompanying Notes to ~~the~~ Consolidated Financial Statements

Assurant, Inc.

Consolidated Statement of Stockholders’ Equity (unaudited)

From December 31, ~~2016~~2017 through June 30, ~~2017~~2018


	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income		Treasury Stock			Total			Common Stock		Preferred Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income			Treasury Stock			Non-controlling Interest		Total
	(in millions)																(in millions)
Balance at December 31, 2016	$	1.5	$	3,175.9		$	5,296.7		$	94.6	$	(4,470.6	)	$	4,098.1
Balance at December 31, 2017																	$	1.5	$	—	$	3,197.9		$	5,697.3		$	234.0		$	(4,860.1	)	$	10.9	$	4,281.5
Cumulative effect of change in accounting principles, net of taxes (1)																	—		—		—			41.4			(33.9		)	—			—		7.5
Stock plan exercises	—		(14.8		)	—			—		—			(14.8		)	—		—		(8.8		)	—			—			—			—		(8.8		)
Stock plan compensation	—		11.3			—			—		—			11.3			—		—		21.7			—			—			—			—		21.7
Dividends	—		—			(60.0		)	—		—			(60.0		)
Acquisition of common stock	—		—			—			—		(216.3		)	(216.3		)
Common stock dividends																	—		—		—			(60.6		)	—			—			—		(60.6		)
Net income	—		—			264.0			—		—			264.0			—		—		—			173.0			—			—			—		173.0
Issuance of preferred stock																	—		2.9		273.5			—			—			—			—		276.4
Issuance of common stock																	0.1		—		975.4			—			—			—			—		975.5
Preferred stock dividends																	—		—		—			(4.8		)	—			—			—		(4.8		)
Change in equity of non-controlling interest																	—		—		—			—			—			—			9.5		9.5
Other comprehensive income	—		—			—			142.3		—			142.3			—		—		—			—			(338.0		)	—			—		(338.0		)
Balance, June 30, 2017	$	1.5	$	3,172.4		$	5,500.7		$	236.9	$	(4,686.9	)	$	4,224.6
Balance, June 30, 2018																	$	1.6	$	2.9	$	4,459.7		$	5,846.3		$	(137.9	)	$	(4,860.1	)	$	20.4	$	5,332.9

(1)

Amounts relate to 1) the requirement to recognize the fair value changes of equity securities directly within income (resulting in a reclassification of unrealized gains as of December 31, 2017 between accumulated other comprehensive income ("AOCI") and retained earnings) and 2) the impact of adoption of the new revenue recognition standard for revenues from service contracts and sales of products. See Note 3 for additional information.

See the accompanying Notes to ~~the~~ Consolidated Financial Statements

Assurant, Inc.

Consolidated Statements of Cash Flows (unaudited)

Six Months Ended June 30, ~~2017~~2018 and ~~2016~~2017


	Six Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2018			2017
	(in millions)						(in millions)
Net cash used in operating activities	$	(0.3	)	$	(323.8	)
Net cash provided by (used in) operating activities (1)							$	172.3		$	(0.3	)
Investing activities
Sales of:
Fixed maturity securities available for sale	1,653.4			1,270.3			1,465.8			1,653.4
Equity securities available for sale	43.8			152.5
Equity securities							57.2			43.8
Other invested assets	35.5			15.8			35.6			35.5
Subsidiary, net of cash transferred (1)	—			857.8
Commercial mortgage loans on real estate	—			268.8
Maturities, calls, prepayments, and scheduled redemption of:
Fixed maturity securities available for sale	448.2			420.1			377.1			448.2
Commercial mortgage loans on real estate	69.0			44.7			78.3			69.0
Purchases of:
Fixed maturity securities available for sale	(1,880.8		)	(2,018.4		)	(1,646.8		)	(1,880.8		)
Equity securities available for sale	(14.7		)	(134.5		)	(39.4		)	(14.7		)
Commercial mortgage loans on real estate	(69.0		)	(33.9		)	(131.6		)	(69.0		)
Other invested assets	(157.2		)	(38.8		)	(19.7		)	(157.2		)
Property and equipment and other	(31.1		)	(47.7		)	(38.1		)	(31.1		)
Subsidiaries, net of cash transferred (2)	(127.4		)	(19.7		)	(1,213.5		)	(127.4		)
Consolidated investment entities (3):
Purchases of investments							(828.3		)	—
Sale of investments							294.8			—
Change in short-term investments	34.8			6.5			94.9			34.8
Other	(0.8		)	2.1			(1.1		)	(0.8		)
Net cash provided by investing activities	3.7			745.6
Net cash (used in) provided by investing activities							(1,514.8		)	3.7
Financing activities
Issuance of debt (3)	69.0			249.7
Repayment of debt	—			(250.0		)
Change in tax benefit from share-based payment arrangements	—			7.9
Issuance of mandatory convertible preferred stock, net of issuance costs (4)							276.4			—
Issuance of debt, net of issuance costs (4)							1,286.1			69.0
Repayment of debt (4)							(350.0		)	—
Issuance of collateralized loan obligation notes							404.9			—
Issuance of debt for consolidated investment entities (3)							385.4			—
Repayment of debt for consolidated investment entities							(296.3		)	—
Acquisition of common stock	(218.6		)	(445.6		)	(6.9		)	(218.6		)
Dividends paid	(60.0		)	(65.0		)
Common stock dividends paid							(60.6		)	(60.0		)
Preferred stock dividends paid							(4.8		)	—
Non-controlling interest							7.7			—
Withholding on stock based compensation	17.3			22.1			6.1			17.3
Net cash used in financing activities	(192.3		)	(480.9		)
Other							(3.5		)	—
Net cash provided by (used in) financing activities							1,644.5			(192.3		)
Effect of exchange rate changes on cash and cash equivalents	5.1			(2.4		)	(22.8		)	5.1
Adjustments for cash included in business classified as held for sale	—			5.9
Cash included in business classified as held for sale							(22.3		)	—
Change in cash and cash equivalents	(183.8		)	(55.6		)	256.9			(183.8		)
Cash and cash equivalents at beginning of period	1,032.0			1,288.3			996.8			1,032.0
Cash and cash equivalents at end of period	$	848.2		$	1,232.7		$	1,253.7		$	848.2

(1)

~~Primarily relates~~The increase in net cash from operating activities for the six months ended June 30, 2018 as compared to the ~~sale~~comparable 2017 period was primarily due to the absence of ~~Assurant's Employee Benefits segment mainly through reinsurance transactions.~~an $85.0 million payment made in 2017 related to the lender-placed market conduct examination settlement agreements. Also contributing was an increase of sales in our Connected Living business, lower inventory purchases in our mobile business and $26.7 million increase in cash from the settlement of a series of derivative transactions that we entered into in 2017 to hedge interest rate risk related to the anticipated borrowings

Assurant, Inc.

Consolidated Statements of Cash Flows (unaudited)

Six Months Ended June 30, 2018 and 2017

to be used for the TWG acquisition (all in 2018). These are partially offset by a $41.5 million payment of an accrued indemnification liability in 2018 related to the previous sale of our general agency business and claim payments made, net of reinusrance, related to losses from 2017 reportable catastrophes.

(2)

~~2017~~Amounts for the six months ended June 30, 2018 primarily ~~includes~~consist of $1.49 billion of cash used to fund a portion of the total purchase of the TWG acquisition, inclusive of ~~Green Tree Insurance Agency, Inc.~~the $595.9 million repayment of pre-existing TWG debt at the Acquisition Date (such debt was not legally assumed by Assurant), net of $277.3 million in TWG cash acquired. The remaining consideration for the TWG acquisition was funded by the issuance of 10,399,862 common shares. Refer to Note 4 - Acquisitions, for additional information.


(3)	Relates to cash flows from our variable interest entities. Refer to Note ~~7- Investments~~8 - Variable Interest Entities, for further information.


(4)	Refer to Note 12 - Debt, for additional ~~information regarding 2017 activity.~~information.

See the accompanying Notes to ~~the~~ Consolidated Financial Statements

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

1. Nature of Operations

Assurant, Inc. (the “Company”) is a holding company whose subsidiaries globally provide risk management solutions in the housing and lifestyle markets, protecting where consumers live and the goods they buy.

The Company is traded on the New York Stock Exchange under the symbol ~~"AIZ."~~"AIZ".

Through its operating subsidiaries, the Company provides mobile device protection products and services; extended service contracts and related services for consumer electronics and appliances; vehicle protection services; credit insurance and other related products; pre-funded funeral ~~insurance; credit insurance;~~insurance and annuity products; lender-placed homeowners insurance; manufactured housing and flood insurance; and renters insurance and related ~~products;~~products. On May 31, 2018, the Company completed its acquisition of TWG Holdings Limited and ~~field services, valuation services and other property risk management services.~~its subsidiaries (“TWG”). Refer to Note 4 for additional information.

2. Basis of Presentation

The accompanying unaudited interim ~~Consolidated Financial Statements~~consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. The consolidated financial statements include the results of TWG from June 1, 2018.

The interim financial data as of June 30, ~~2017~~2018 and for the three and six months ended June 30, ~~2017~~2018 and ~~2016~~2017 is unaudited; in the opinion of management, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. The unaudited interim ~~Consolidated Financial Statements~~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 2017 presentation.~~

Operating results for the three and six months ended June 30, ~~2017~~2018 are not necessarily indicative of the results that may be expected for the year ending December 31, ~~2017.~~2018. The accompanying unaudited interim ~~Consolidated Financial Statements~~consolidated financial statements should be read in conjunction with the audited ~~Consolidated Financial Statements~~consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2017 (the “2017 annual financial statements”).

3. Recent Accounting Pronouncements

Adopted

On April 1, 2017, the Company early adopted the amended guidance to shorten the amortization period of premiums on certain purchased callable debt securities to the earliest call date. Such guidance would have been required to be adopted in 2019. Since the Company’s current policy is to amortize premiums on callable debt securities to the earliest call date, at the date of adoption there was no impact to the Company’s financial position or results of operations.

Revenue recognition from contracts with customers: On January 1, ~~2017,~~2018, the Company adopted the ~~amended~~new guidance ~~on goodwill impairment testing.~~ related to revenue recognition from contracts with customers. The new guidance was adopted using the modified retrospective approach, whereby the cumulative effect of adoption to retained earnings was recognized as of January 1, 2018 and the comparative information was not restated and continues to be reported under the accounting standards in effect for those periods.~~Under~~

The guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. Insurance and similar contracts issued by insurance entities are specifically excluded from the scope of the amended ~~guidance,~~revenue recognition guidance. As such, this standard only applies to the ~~optional qualitative assessment (Step 0)~~Company’s service contracts and ~~the first step~~sales of products, including those related to providing administrative services, mobile device related services, mortgage property risk management services and similar fee for service arrangements. Revenues from these contracts correspond to approximately 20% of the ~~quantitative assessment (Step 1) remain unchanged. Step 2 is eliminated. As~~Company’s total 2017 revenues. The standard utilizes a ~~result, for annual impairment testing or in~~five-step approach that emphasizes the ~~event a test is required prior to~~recognition of revenue when the ~~annual test,~~performance obligations are met by the Company ~~will use Step 1~~in order to ~~determine both~~reflect the ~~existence~~transfer of promised goods or services to customers in an amount that reflects the consideration the Company expects to receive.

As of the adoption date, accounts payable and ~~amount of goodwill impairment. An impairment loss will be recognized for the amount~~other liabilities decreased by ~~which the reporting unit’s carrying amount exceeds its fair value, not~~$10.0 million, other assets decreased by $0.3 million, retained earnings increased by $7.5 million, and deferred taxes increased by $2.2 million due to ~~exceed the carrying amount of goodwill in that reporting unit.~~ ~~The Company is adopting this guidance on a prospective basis as~~ a change in ~~accounting principle, therefore at~~ the ~~date~~revenue recognition associated with certain mobile upgrade programs. The change reflects the recognition of ~~adoption there is no impact to the Company’s financial position or results of operations.~~upgrade revenue

On January 1, 2017, the Company adopted the amended guidance on accounting for employee share-based stock compensation. The updated guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and accounting for forfeitures. Upon adoption the Company recognizes excess tax benefits or deficiencies in net income, as well as the related cash flows in operating activities, on a prospective basis. The earnings impact of the adoption did not have a material impact on the Company’s financial results of operations. The updated guidance allows companies a policy election with regard to forfeitures and the Company has elected to continue its existing practice of estimating the number of

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

~~awards that will~~in proportion to the pattern of rights expected to be ~~forfeited. As required in the updated guidance, the Company will present cash flows related to employee withholding taxes as financing activities~~exercised as opposed to ~~operating activities,~~recognition when the event (upgrade or end of term) occurs. The comparable mobile upgrade programs impacted by this change were immaterial in prior periods.

Upon adoption of the new revenue recognition guidance, the Company’s revenues for service contracts and sales of products are subject to additional disclosure requirements, such as those related to providing disaggregated revenue disclosure, changes in contract balances, enhanced description of performance obligations, basis of determining costs and related significant judgments used in determining appropriate revenue recognition procedures. Refer to Note 6 for the Contract Revenues note.

Financial instruments measurement and classification: On January 1, 2018, the Company adopted the amended guidance on the measurement and classification of financial instruments whereby all common and preferred stocks are measured at fair value through the income statement. Upon adoption, the Company recorded a cumulative effect adjustment to increase retained earnings by $33.9 million, which represents a reclassification from AOCI of the unrealized gains on common and preferred stock as of the date of adoption. The Company's other-than-temporary impairment policies have been updated to reflect that the change in value for preferred and common stocks are now reported in net income. For certain private equity investments recorded in Other investments, the Company elected the measurement alternative to record these investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The measurement alternative has been applied on a ~~retrospective basis, which resulted in~~prospective basis.

Income tax consequences for intra-entity transfers of assets: On January 1, 2018, the ~~reclassification of $17.3 and $22.1 in~~Company adopted the ~~consolidated statements of cash flows for the periods ending June 30, 2017 and 2016, respectively.~~

~~Not Yet Adopted~~

~~In October 2016, the FASB issued~~ amended guidance on tax accounting for intra-entity transfers of assets. ~~Current~~The amended guidance ~~prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party. The amendments require~~requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer ~~occurs.~~occurs as opposed to when it has been sold to an outside party. Also, the amended guidance eliminates the exception for an intra-entity transfer of an asset other than inventory. The adoption of this amended guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Therefore, the Company is required to adopt the guidance on January 1, 2018. Early adoption is permitted. The Company is evaluating the requirements of this guidance and the potentialdid not have an impact on the Company’s financial position and results of operations.

~~In August 2016,~~Statement of cash flows presentation and classification: On January 1, 2018, the ~~FASB issued~~Company adopted the amended guidance on presentation and classification in the statement of cash flows. The ~~amendments address~~amended guidance addresses certain specific cash flow ~~issues:~~issues including debt prepayment orand debt extinguishment costs; settlement of zero-coupon or insignificant coupon debt instruments; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and guidance related to the identification of the primary source for separately identifiable cash flows. The adoption of this amended guidance did not have an impact on the Company’s financial position and results of operations.

Accounting for hedging activities: On January 1, 2018, the Company adopted the amended guidance related to hedge effectiveness testing requirements, income statement presentation and disclosure and hedge accounting qualification criteria. The amended guidance requires that realized gains and losses on forecasted transactions are recorded in the financial statement line item to which the underlying forecasted transactions relates; simplifies the ongoing effectiveness testing; and reduces the complexity of hedge accounting requirements for new derivative contracts. The adoption of this amended guidance did not have a material impact on the Company's financial position and results of operations.

Not Yet Adopted

Classification of certain tax effects from accumulated other comprehensive income: In February 2018, the Financial Accounting Standards Board ("FASB") issued amended guidance on reclassifying the stranded tax effects from the Tax Cuts and Jobs Act of 2017 from accumulated other comprehensive income to retained earnings. The amended guidance is effective in fiscal years beginning after December 15, ~~2017,~~2018, including interim periods within those fiscal years. Therefore, the Company is required to adopt the guidance on January 1, ~~2018.~~2019. Early adoption is permitted, including adoption in any interim period for reporting periods in which financial statements have not yet been issued. The amendments in this guidance should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this amended guidance will not have ana material impact on the ~~Company’s~~Company's financial position and results of operations.

Reporting credit losses of assets held at amortized cost: In June 2016, the FASB issued amended guidance on reporting credit losses for assets held at amortized cost ~~basis~~ and available for sale debt securities. For assets held at amortized cost, ~~basis,~~ the

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

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~~will be measured in a manner similar to current ~~GAAP,~~accounting requirements; however, the amended guidance requires that credit 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, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amended guidance is effective in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Therefore, the Company is required to adopt the guidance on January 1, 2020. Early adoption is permitted as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is evaluating the requirements of this amended guidance and the potential impact on the Company’s financial position and results of operations.

Lease accounting: In February 2016, the FASB issued new guidance on ~~leases. The new guidance will replace~~leases, which replaces the current lease guidance. The new guidance requires that entities recognize the assets and liabilities associated with leases on the balance sheet and to disclose key information about leasing arrangements. The new guidance is effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Therefore, the Company is required to adopt the guidance on January 1, 2019. Early adoption is permitted. The Company and its subsidiaries lease office space and equipment under operating lease arrangements. The Company performed an inventory of its lease arrangements and is ~~evaluating~~in the ~~requirements~~process of ~~this~~assessing the potential impact of the new lease ~~guidance and the potential impact~~standard on the Company’s financial position and results of operations.

~~In January 2016,~~

4. Acquisitions

TWG Acquisition

On May 31, 2018 (the “Acquisition Date”), the ~~FASB issued amended guidance~~Company completed the acquisition of TWG Holdings Limited (“TWG Holdings”) and its subsidiaries for a total enterprise value of $2.47 billion. This reflects $894.9 million in cash, the repayment of TWG’s $595.9 million pre-existing debt and $975.5 million in newly-issued Assurant, Inc. common stock. As a result, the equityholders of TWG Holdings, including TPG Capital, received a total of 10,399,862 shares of Assurant common stock, which represented 16.5% of the Company's outstanding shares of common stock as of June 30, 2018. TWG specializes in the underwriting, administration and marketing of service contracts on a wide variety of consumer goods, including automobiles, consumer electronics and major home appliances. The acquisition will enhance the Company's position as a leading lifestyle provider, particularly within the Global Automotive business, with significant operating synergies expected and a deepened global footprint. The Company financed the cash consideration and repayment of TWG's pre-existing debt through a combination of available cash and external financing. Refer to Notes 12 and 15 for more information on the ~~measurement~~issuances of debt and classification of financial instruments. This amended guidance requires that all equity investments be measured at fair value with changes in fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidationmandatory convertible preferred stock, respectively, related to the financing of the ~~investee).~~ acquisition.

Acquisition Consideration

The ~~amendments also require an entity~~table below details the purchase consideration:

Calculation of acquisition consideration



Common stock shares issued to TWG equityholders	10,399,862
Volume weighted average common share price of Assurant, Inc. on May 31, 2018	$	93.80
Share issuance consideration	$	975.5
Aggregate cash consideration	894.9
Repayment of pre-existing TWG debt	595.9
Total acquisition consideration	$	2,466.3

Fair Value of Net Assets Acquired and Liabilities Assumed

The fair values listed below are preliminary estimates and are subject to ~~present separately in other comprehensive income the portion~~adjustment, including assessment of the ~~total change~~Value of business acquired ("VOBA") and Other intangible assets, as well as certain components of deferred tax liabilities included within Accounts payable and other liabilities. If necessary, the Company will recognize measurement-period adjustments during the period in which the ~~fair value~~Company determines the amounts, including the effect on earnings of a liability resulting from a change in the instrument-specific credit risk when the fair value option has been elected for financial liabilities. The amendments eliminate the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, however public business entities will be required to use the exit price when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes. In addition, the new guidance requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial asset. The amended guidance is effective in fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.any amounts that would have

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

~~Therefore,~~been recorded in previous periods if such adjustments were known as of the Acquisition Date.

Preliminary estimate of assets acquired and (liabilities) assumed



Fixed maturity securities available for sale	$	2,359.3
Equity securities	49.4
Short-term investments	174.5
Other investments	104.2
Cash and cash equivalents	277.3
Premiums and accounts receivable, net	275.2
Reinsurance recoverables	1,917.5
Accrued investment income	31.6
Property and equipment	15.4
Value of business acquired	3,995.7
Other intangible assets	461.4
Other assets	195.5
Unearned premiums and contract fees	(7,250.7		)
Claims and benefits payable	(423.5		)
Reinsurance balances payable	(186.1		)
Funds held under reinsurance	(200.8		)
Accounts payable and other liabilities	(791.6		)
Non-controlling interest	(1.8		)
Total identifiable net assets acquired	1,002.5
Goodwill	1,463.8
Total acquisition consideration	$	2,466.3

The Company recognized Goodwill of $1.46 billion, mainly attributable to expected growth and profitability, none of which is expected to be deductible for income tax purposes. The Company recognized VOBA of $4.00 billion and Other intangible assets of $449.8 million, which will be amortized over their estimated useful lives, ranging from 3 to 15 years, as well as indefinite-lived Other intangible assets of $11.6 million. Refer to Note 11 for additional information.

Acquisition-related Costs

Transaction costs related to the acquisition were expensed as incurred. These costs include advisory, legal, accounting, valuation and other professional or consulting fees, as well as general and administrative costs. Transaction costs incurred to date in connection with the acquisition of TWG totaled $39.3 million, including $24.8 million and $30.0 million for the three and six months ended June 30, 2018, respectively, which were reported through the Underwriting, general and administrative expenses line item in the consolidated statements of operations.

As a part of the ongoing integration of TWG's operations, the Company ~~is required~~has incurred, and will continue to ~~adopt~~incur, costs associated with restructuring the ~~guidance~~systems, processes and workforce. These costs include such items as severance, retention, facilities and consulting and other costs. Integration costs incurred to date in connection with the acquisition of TWG totaled $13.5 million, including $10.5 million and $12.8 million for the three and six months ended June 30, 2018, respectively, which were reported through the Underwriting, general and administrative expenses line item in the consolidated statements of operations.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

Financial Results

The following table summarizes the results of the acquired TWG operations since the Acquisition Date that have been included within our consolidated statements of income (based on how TWG was allocated to the Company's reportable segments):



	June 1, 2018 to June 30, 2018
	Global Lifestyle		Corporate and Other (1)			Total
Total revenues	$	211.9	$	(1.6	)	$	210.3
Net income	$	9.4	$	(0.1	)	$	9.3


(1)	The TWG operating results allocated to the Corporate and other segment consist of pre-tax integration expenses and net realized losses on investments, as offset by income tax benefits, which includes a $5.7 million tax structuring benefit. Refer to Note 19 - Income Taxes, for further information on the income tax benefit.

Supplemental Pro Forma Information

The following table provides unaudited supplemental pro forma consolidated information for the six months ended June 30, 2018 and 2017, as if TWG had been acquired as of January 1, ~~2018. Upon adoption, all common~~2017. The unaudited supplemental pro forma consolidated financial information is presented solely for informational purposes and ~~preferred stocks will be measured at fair value through the income statement as we have not elected the fair value measurement alternative in cases where there~~ is not ~~a readily determinable market price. The potential impact~~necessarily indicative of ~~this amended measurement and classification of financial instruments guidance on~~ the ~~Company’s financial position and~~consolidated results of operations ~~will be determined based on~~that might have been achieved had the ~~market values~~transaction been completed as of the ~~common~~date indicated, nor are they meant to be indicative of any anticipated consolidated future results of operations that the combined company will experience after the transaction.



	Six Months Ended June 30,
	2018		2017
Total revenues	$	4,519.1	$	4,197.7
Net income	$	244.0	$	282.5
Basic earnings per share	$	3.68	$	4.13
Diluted earnings per share	$	3.64	$	4.07

For the six months ended June 30, 2017, pro forma net income includes $19.4 million of nonrecurring transaction and ~~preferred stocks on~~integration costs, net of taxes. For the pro forma presentation, given the assumed acquisition date of ~~adoption.~~

In May 2014, the FASB issued amended guidance on revenue recognition from contracts with customers. In July 2015, the FASB approved a one-year deferral of the effective date of the amended guidance to 2018 for public companies. Further amendmentsJanuary 1, 2017, transaction and ~~technical corrections~~integration costs that were ~~made~~incurred at, or subsequent to, the ~~amended guidance during 2016. The amended guidance, which~~actual acquisition date have been included in the ~~Company will adopt effective January 1, 2018, affects any entity~~2017 pro forma net income, whereas transaction and integration costs that ~~either enters into contracts with customers~~were incurred prior to ~~transfer goods or services or enters into contracts for~~ the ~~transfer of nonfinancial assets unless those contracts are within the scope of other standards. Insurance contracts are within the scope of other standards and therefore are specifically~~actual acquisition date have been excluded from the ~~scope~~2017 pro forma net income.

Prior year acquisition

On February 1, 2017, the Company acquired 100% of Green Tree Insurance Holdings, Corp. and its subsidiaries Green Tree Insurance Agency and Green Tree Insurance Agency Reinsurance Limited (collectively “Green Tree”) for $125.0 million in cash with a potential earn-out of up to $25.0 million, based on future performance. Green Tree sells housing protection products, including voluntary homeowners’ and manufactured housing policies, and other insurance products. In connection with the ~~amended revenue recognition guidance.~~acquisition, including measurement period adjustments, the Company recorded $10.4 million of net liabilities, $69.6 million of agency relationship and renewal rights intangible assets, all of which are amortizable over periods ranging from 7 to 16 years, and $65.8 million of goodwill, none of which is tax-deductible. The ~~amended guidance creates a five step approach that emphasizes~~primary factors contributing to the recognition of ~~revenue when the performance obligations are met in order to reflect the transfer~~goodwill is future expected growth of promised goods or services to customers in an amount that reflects the consideration the entity expects to receive. This guidance may be adopted using the full retrospective method, whereby the amended guidance is applied to each prior period presentedthis business and the cumulative effect of applying the amended guidance is recognized at the beginning of the earliest period presented or the modified retrospective approach, whereby the cumulative effect of applying the amended guidance is recognized at the beginning of the year of adoption and the comparative information is not restated and continues to be reported under the accounting standards in effect for those periods.

The Company is progressing through its process to implement the amended revenue recognition guidance. The Company has assessed its revenue streams to identify those contracts that are excluded from the scope of the standard and those that are subject to the new standard. The Company has identified that approximately 40% of its 2016 reported revenues are in scope of the new standard. The in-scope revenues include service contract revenues written by non-insurance companies, which are currently reported in net earned premiums, and will likely be disclosed as part of a new category of revenue as a result of adoption of the new standard. The Company has selected a representative sample of contracts from the more significant in-scope product lines for review under the new standard (“key contracts”) to identify revenues that should be separately disclosed or earned using a different recognition period. The review of such key contracts is nearly complete. The Company is currently grouping the remaining contracts with similar features based on the conclusions reached with the key contracts review and is in the process of performing additional review of specific contracts with unique features that require separate assessment. Based on the work completed to date, the Company does not expect the implementation of the amended guidance to have an impact on the timing of revenue recognition for the majority of its in-scope revenue streams. While significant progress has been made, the Company is still evaluating the impact of the amended revenue recognition standard on its financial position and results of operations and related disclosures.operating synergies within Global Housing.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

5. Segment Information

As of June 30, ~~2017,~~2018, the Company had four reportable segments, which are defined based on the manner in which our Chief Operating Decision Makers (CEO and COO) review the business to assess performance and allocate resources, and align to the nature of the products and services offered:

•Global Housing: provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (referred to as ~~multi-family~~multifamily housing); and valuation and field services (referred to as mortgage solutions).

•Global Lifestyle: provides mobile device protection and related services and extended service products and related services (referred to as Connected Living); vehicle protection services (referred to as Global Automotive) and credit ~~insurance.~~insurance and other insurance (referred to as Financial Services).

•Global Preneed: provides pre-funded funeral insurance.

~~Assurant, Inc.~~

~~Notes to Consolidated Financial Statements (unaudited)~~

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

•Total Corporate &and Other: Corporate &and Other includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments, ~~and~~ interest income earned from short-term investments held and income (expenses) primarily related to the Company's frozen benefit plans. Corporate &and Other also includes the amortization of deferred ~~gains and~~ gains associated with the sales of Fortis Financial Group, Long-Term Care and Assurant Employee Benefits ("AEB") through reinsurance agreements, expenses related to the acquisition of TWG, and other unusual ~~and~~or infrequent items. Additionally, the Total Corporate &and Other segment includes amounts related to the ~~runoff of the~~ Assurant Health ~~business.~~business, which is in runoff. As Assurant Health was a reportable segment in prior years, these amounts are disclosed separately in the following segment tables for comparability.

~~In addition, AEB was a separate reportable segment in 2016 and primarily includes the results of operations for the periods prior to its sale on March 1, 2016. See Note 5 for more information.~~

The following tables summarize selected financial information by segment:

Three Months Ended June 30, 2017
Total Corporate & Other
Global Housing Global Lifestyle Global Preneed
Corporate &
Other
Health Total Consolidated
Revenues
Net earned premiums $ 442.4
$ 656.0
$ 15.2
$ —
$ 1.7
$ 1.7
$ 1,115.3
Fees and other income 107.8
180.0
31.1
6.9
1.1
8.0
326.9
Net investment income 16.8
26.4
65.0
9.8
3.7
13.5
121.7
Net realized gains on investments —
—
—
13.2
—
13.2
13.2
Amortization of deferred gains and
  gains on disposal of businesses
—
—
—
23.4
—
23.4
23.4
Total revenues 567.0
862.4
111.3
53.3
6.5
59.8
1,600.5
Benefits, losses and expenses
Policyholder benefits (1) 188.2
178.1
61.9
—
(11.8 ) (11.8 ) 416.4
Amortization of deferred
  acquisition costs and value of
  business acquired
46.8
283.6
16.3
—
—
—
346.7
Underwriting, general and
  administrative expenses
247.5
340.6
14.3
29.9
14.0
43.9
646.3
Interest expense —
—
—
12.4
—
12.4
12.4
Total benefits, losses and
  expenses
482.5
802.3
92.5
42.3
2.2
44.5
1,421.8
Segment income before provision
  for income tax
84.5
60.1
18.8
11.0
4.3
15.3
178.7
Provision for income taxes 28.3
19.9
6.0
3.5
0.8
4.3
58.5
Segment income after tax $ 56.2
$ 40.2
$ 12.8
$ 7.5
$ 3.5
$ 11.0

Net income $ 120.2

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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


	Three Months Ended June 30, 2016																	Three Months Ended June 30, 2018
								Total Corporate & Other																Total Corporate and Other
	Global Housing		Global Lifestyle			Global Preneed		Corporate & Other		Health			Total			Consolidated		Global Housing		Global Lifestyle		Global Preneed		Corporate and Other			Health			Total			Consolidated
Revenues
Net earned premiums	$	451.3	$	739.2		$	16.1	$	—	$	(4.3	)	$	(4.3	)	$	1,202.3	$	449.7	$	874.3	$	14.2	$	—		$	0.1		$	0.1		$	1,338.3
Fees and other income	109.8		175.7			27.2		7.3		8.3			15.6			328.3		92.8		227.9		32.7		0.6			0.2			0.8			354.2
Net investment income	17.9		26.3			61.9		11.7		2.0			13.7			119.8		15.9		36.6		67.9		14.6			0.6			15.2			135.6
Net realized gains on investments (2)	—		—			—		21.6		—			21.6			21.6
Amortization of deferred gains and gains on disposal of businesses (3)	—		—			—		125.8		—			125.8			125.8
Net realized gains on investments																		—		—		—		(11.4		)	—			(11.4		)	(11.4		)
Amortization of deferred gains on disposal of businesses (1)																		—		—		—		15.0			—			15.0			15.0
Total revenues	579.0		941.2			105.2		166.4		6.0			172.4			1,797.8		558.4		1,138.8		114.8		18.8			0.9			19.7			1,831.7
Benefits, losses and expenses
Policyholder benefits ~~(1)~~(2)	202.7		161.0			61.2		—		(24.1		)	(24.1		)	400.8		187.2		239.3		65.0		—			(0.9		)	(0.9		)	490.6
Amortization of deferred acquisition costs and value of business acquired	59.7		267.5			15.5		—		—			—			342.7		50.4		395.6		17.2		—			—			—			463.2
Underwriting, general and administrative expenses	231.9		464.2			11.7		58.0		37.8			95.8			803.6		229.3		419.6		13.8		109.4			1.5			110.9			773.6
Interest expense	—		—			—		15.2		—			15.2			15.2		—		—		—		26.0			—			26.0			26.0
Total benefits, losses and expenses	494.3		892.7			88.4		73.2		13.7			86.9			1,562.3		466.9		1,054.5		96.0		135.4			0.6			136.0			1,753.4
Segment income (loss) before provision (benefit) for income tax	84.7		48.5			16.8		93.2		(7.7		)	85.5			235.5
Provision (benefit) for income taxes	27.8		(1.6		)	5.5		36.8		(2.3		)	34.5			66.2
Segment income (loss) after tax	$	56.9	$	50.1		$	11.3	$	56.4	$	(5.4	)	$	51.0
Net income																$	169.3
Segment income before provision for income tax																		91.5		84.3		18.8		(116.6		)	0.3			(116.3		)	78.3
Provision for income taxes																		18.9		16.2		4.1		(28.0		)	0.1			(27.9		)	11.3
Segment income after tax																		72.6		68.1		14.7		(88.6		)	0.2			(88.4		)	67.0
Less: Preferred stock dividends																		—		—		—		(4.8		)	—			(4.8		)	(4.8		)
Net income attributable to common stockholders																		$	72.6	$	68.1	$	14.7	$	(93.4	)	$	0.2		$	(93.2	)	$	62.2
																		As of June 30, 2018

Segment assets:																		$	3,930.1	$	20,561.5	$	6,897.3	$	10,911.2		$	61.2		$	10,972.4		$	42,361.3

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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


	Six Months Ended June 30, 2017																Three Months Ended June 30, 2017
							Total Corporate & Other																Total Corporate and Other
	Global Housing		Global Lifestyle		Global Preneed		Corporate & Other		Health			Total			Consolidated		Global Housing		Global Lifestyle		Global Preneed		Corporate and Other		Health			Total			Consolidated
Revenues
Net earned premiums	$	878.8	$	1,251.8	$	29.8	$	—	$	5.2		$	5.2		$	2,165.6	$	442.4	$	656.0	$	15.2	$	—	$	1.7		$	1.7		$	1,115.3
Fees and other income	203.1		389.1		60.7		11.8		2.4			14.2			667.1		107.8		180.0		31.1		6.9		1.1			8.0			326.9
Net investment income	36.0		52.9		129.2		19.4		4.8			24.2			242.3		16.8		26.4		65.0		9.8		3.7			13.5			121.7
Net realized gains on investments	—		—		—		16.6		—			16.6			16.6		—		—		—		13.2		—			13.2			13.2
Amortization of deferred gains and gains on disposal of businesses	—		—		—		60.4		—			60.4			60.4
Amortization of deferred gains on disposal of businesses (1)																	—		—		—		23.4		—			23.4			23.4
Total revenues	1,117.9		1,693.8		219.7		108.2		12.4			120.6			3,152.0		567.0		862.4		111.3		53.3		6.5			59.8			1,600.5
Benefits, losses and expenses
Policyholder benefits ~~(1)~~(2)	351.5		326.7		128.1		—		(31.9		)	(31.9		)	774.4		188.2		178.1		61.9		—		(11.8		)	(11.8		)	416.4
Amortization of deferred acquisition costs and value of business acquired	97.7		534.6		28.9		—		—			—			661.2		46.8		283.6		16.3		—		—			—			346.7
Underwriting, general and administrative expenses	488.2		695.3		29.2		57.5		27.4			84.9			1,297.6		247.5		340.6		14.3		29.9		14.0			43.9			646.3
Interest expense	—		—		—		25.0		—			25.0			25.0		—		—		—		12.4		—			12.4			12.4
Total benefits, losses and expenses	937.4		1,556.6		186.2		82.5		(4.5		)	78.0			2,758.2		482.5		802.3		92.5		42.3		2.2			44.5			1,421.8
Segment income before provision for income tax	180.5		137.2		33.5		25.7		16.9			42.6			393.8		84.5		60.1		18.8		11.0		4.3			15.3			178.7
Provision for income taxes	62.4		44.6		10.8		6.5		5.5			12.0			129.8		28.3		19.9		6.0		3.5		0.8			4.3			58.5
Segment income after tax	$	118.1	$	92.6	$	22.7	$	19.2	$	11.4		$	30.6				$	56.2	$	40.2	$	12.8	$	7.5	$	3.5		$	11.0		$	120.2
Net income															$	264.0
	As of June 30, 2017

Segment assets:	$	3,744.7	$	9,106.9	$	6,701.8	$	10,364.3	$	141.2		$	10,505.5		$	30,058.9

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

Six Months Ended June 30, 2016
Total Corporate & Other
Global Housing Global Lifestyle Global Preneed
Corporate &
Other
Health Total
Employee
Benefits (4)
Consolidated
Revenues
Net earned premiums 920.9
1,462.4
31.8
—
24.4
24.4
178.0
2,617.5
Fees and other income 217.6
386.8
54.2
9.8
13.4
23.2
4.2
686.0
Net investment income 36.2
53.2
124.0
18.9
5.9
24.8
17.3
255.5
Net realized gains on
  investments (2)
—
—
—
183.3
—
183.3
—
183.3
Amortization of deferred
  gains and gains on disposal
  of businesses (3)
—
—
—
173.4
—
173.4
—
173.4
Gain on pension plan
  curtailment
—
—
—
29.6
—
29.6
—
29.6
Total revenues 1,174.7
1,902.4
210.0
415.0
43.7
458.7
199.5
3,945.3
Benefits, losses and
  expenses

Policyholder benefits (1) 382.2
323.1
125.9
—
(5.0 ) (5.0 ) 118.4
944.6
Amortization of deferred
  acquisition costs and value
  of business acquired
119.1
520.5
31.6
—
—
—
5.8
677.0
Underwriting, general and
administrative expenses 473.3
950.3
26.8
121.3
90.7
212.0
58.5
1,720.9
Interest expense —
—
—
29.7
—
29.7
—
29.7
Total benefits, losses and
  expenses
974.6
1,793.9
184.3
151.0
85.7
236.7
182.7
3,372.2
Segment income (loss)
  before provision (benefit)
  for income tax
200.1
108.5
25.7
264.0
(42.0 ) 222.0
16.8
573.1
Provision (benefit) for
  income taxes
66.8
17.0
8.7
94.0
(9.4 ) 84.6
6.3
183.4
Segment income (loss) after
  tax
133.3
91.5
17.0
170.0
(32.6 ) 137.4
10.5

Net income 389.7



	Six Months Ended June 30, 2018
							Total Corporate and Other
	Global Housing		Global Lifestyle		Global Preneed		Corporate and Other			Health			Total			Consolidated
Revenues
Net earned premiums	$	886.1	$	1,547.9	$	28.8	$	—		$	0.4		$	0.4		$	2,463.2
Fees and other income	179.5		472.8		64.3		1.8			0.3			2.1			718.7
Net investment income	36.1		68.7		133.7		25.6			1.7			27.3			265.8
Net realized gains on investments	—		—		—		(10.9		)	—			(10.9		)	(10.9		)
Amortization of deferred gains on disposal of businesses (1)	—		—		—		33.5			—			33.5			33.5
Total revenues	1,101.7		2,089.4		226.8		50.0			2.4			52.4			3,470.3
Benefits, losses and expenses
Policyholder benefits (2)	356.3		420.9		131.7		—			(3.7		)	(3.7		)	905.2
Amortization of deferred acquisition costs and value of business acquired	100.0		675.9		33.7		—			—			—			809.6
Underwriting, general and administrative expenses	464.2		835.4		30.0		160.4			3.2			163.6			1,493.2
Interest expense	—		—		—		47.5			—			47.5			47.5
Total benefits, losses and expenses	920.5		1,932.2		195.4		207.9			(0.5		)	207.4			3,255.5
Segment income before provision for income tax	181.2		157.2		31.4		(157.9		)	2.9			(155.0		)	214.8
Provision for income taxes	37.4		33.3		6.9		(36.5		)	0.7			(35.8		)	41.8
Segment income after tax	143.8		123.9		24.5		(121.4		)	2.2			(119.2		)	173.0
Less: Preferred stock dividends	—		—		—		(4.8		)	—			(4.8		)	(4.8		)
Net income attributable to common stockholders	$	143.8	$	123.9	$	24.5	$	(126.2	)	$	2.2		$	(124.0	)	$	168.2

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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



	Six Months Ended June 30, 2017
							Total Corporate and Other
	Global Housing		Global Lifestyle		Global Preneed		Corporate and Other		Health			Total			Consolidated
Revenues
Net earned premiums	$	878.8	$	1,251.8	$	29.8	$	—	$	5.2		$	5.2		$	2,165.6
Fees and other income	203.1		389.1		60.7		11.8		2.4			14.2			667.1
Net investment income	36.0		52.9		129.2		19.4		4.8			24.2			242.3
Net realized gains on investments	—		—		—		16.6		—			16.6			16.6
Amortization of deferred gains on disposal of businesses (1)	—		—		—		60.4		—			60.4			60.4
Total revenues	1,117.9		1,693.8		219.7		108.2		12.4			120.6			3,152.0
Benefits, losses and expenses
Policyholder benefits (2)	351.5		326.7		128.1		—		(31.9		)	(31.9		)	774.4
Amortization of deferred acquisition costs and value of business acquired	97.7		534.6		28.9		—		—			—			661.2
Underwriting, general and administrative expenses	488.2		695.3		29.2		57.5		27.4			84.9			1,297.6
Interest expense	—		—		—		25.0		—			25.0			25.0
Total benefits, losses and expenses	937.4		1,556.6		186.2		82.5		(4.5		)	78.0			2,758.2
Segment income before provision for income tax	180.5		137.2		33.5		25.7		16.9			42.6			393.8
Provision for income taxes	62.4		44.6		10.8		6.5		5.5			12.0			129.8
Segment income after tax	$	118.1	$	92.6	$	22.7	$	19.2	$	11.4		$	30.6		$	264.0


(1)	The three months ended June 30, 2018 and 2017 include $12.7 million and $20.6 million, respectively, and the six months ended June 30, 2018 and 2017 include $29.0 million and $54.8 million, respectively, related to the amortization of deferred gains related to the 2016 sale of AEB. The remaining AEB unamortized deferred gain as of June 30, 2018 was $34.7 million.

(2)

The presentation of Assurant Health policyholder benefits includes the impact of the total current period net utilization of premium deficiency reserves for claim costs and claim adjustment expenses included in policyholder benefits, as well as maintenance costs, which are included within underwriting, general and administrative expenses. For the three months ended June 30, ~~2017~~2018 and ~~2016,~~2017, the premium deficiency reserve liability decreased $0.7 million and $9.2 ~~and $12.2, respectively.~~million, respectively, through an offset to policyholder benefit expense. For the six months ended June 30, ~~2017~~2018 and ~~2016,~~2017, the premium deficiency reserve liability decreased $0.8 million and $21.9 ~~and increased $1.4, respectively.~~million, respectively, through an offset to policyholder benefit expense. In addition, there was favorable claims development experienced through June 30, ~~2017,~~2018, in excess of actual benefit expense, which contributed to the credit balance within policyholder benefits expenses.


~~(2)~~	~~Six months ended June 30, 2016 includes $146.7 of net realized gains related to assets transferred to Sun Life as part of the AEB sale on March 1, 2016.~~


~~(3)~~	The three months ended June 30, 2017 and 2016 include $20.6 and $122.8, respectively, and the six months ended June 30, 2017 and 2016 include $54.8 and $167.4, respectively, related to the amortization of deferred gains and gains related to the AEB sale on March 1, 2016.


~~(4)~~	~~AEB amounts represent the results of operations prior to the sale on March 1, 2016.~~

~~5. Dispositions~~6. Contract Revenues

~~On March~~Assurant partners with clients to provide consumers a diverse range of protection products and services. The Company’s revenues from protection products (approximately 80% of total revenues) are accounted for as insurance contracts and therefore are not subject to the new revenue standard adopted as of January 1, ~~2016,~~2018 described in Note 3. Revenue from service contracts and sales of products (approximately 20% of total revenues) are recognized in accordance with the Company completed the sale of its AEB segment through a series of transactions with Sun Life Assurance Company of Canada, a subsidiary of Sun Life Financial Inc. ("Sun Life"), for net cash consideration of $942.2 (including contingent consideration), which resulted in an estimated gain of $656.5. The transaction was primarily structured as a reinsurance arrangement, as wellnew revenue recognition standard. Specifically, these revenues are recognized as the ~~sale~~contractual performance obligations are satisfied or the products are delivered. Revenue is measured as the amount of ~~certain legal entities that included ceding commission and other consideration.~~consideration we expect to be entitled to in exchange for performing the services or transferring products. If payments are received before the related revenue is recognized, the amount is recorded as unearned revenue or advance payment liabilities, until the performance obligations are satisfied or the products are transferred.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

The ~~reinsurance transaction does not extinguish~~disaggregated revenues subject to the ~~Company's primary liability~~new revenue recognition standard and included in fees and other income on the ~~policies issued~~consolidated statement of operations are $84.2 million and $160.3 million for Global Housing and $151.2 million and $324.8 million for Global Lifestyle for the three and six months ended June 30, 2018, respectively.

Global Housing

In our Global Housing segment, revenues from service contracts and sales of products are primarily from our mortgage solutions and lender-placed insurance businesses. Under our mortgage solutions business, we offer valuation and title services and products across the origination, home equity and default markets, as well as field services, inspection services, restoration and real estate owned (“REO”) asset management to mortgage servicing clients and investors. Under our lender-placed insurance business, we provide loan and claim payment tracking services for lenders. We generally invoice our customers weekly or ~~assumed by subsidiaries that are parties~~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. We recognize revenue as we invoice which corresponds with the value transferred to the ~~reinsurance agreements, thus any gains associated~~customer.

Global Lifestyle

In our Global Lifestyle segment, revenue from service contracts and sales of products is primarily from our Connected Living business. Through partnerships with the prospective component of the reinsurance transaction are deferred and amortized over the contract period, including contractual renewal periods, in proportion to the amount of insurance coverage provided. The Company also has an obligation to continue to write and renew certain policies for a period of time until Sun Life commences policy writing and renewal. The transition agreements between the Company and Sun Life are subject to amendment based on agreement between the parties.

~~The Company was required to allocate the proceeds considering the relative fair value of the transaction components. Most of the expected gains resulting from the transaction~~mobile carriers, we provide administrative services related to our ~~compensation for~~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 ~~inforce policies (prospective component),~~volume of services provided during the billing period (for example, based on the number of mobile subscribers) with payment due within a short-term period. Each service or bundle of services, depending on the contract, is an individual performance obligation with a standalone selling price. We recognize revenue as we invoice which corresponds with the value transferred to the customer.

We also sell repaired or refurbished mobile and other electronic devices. Revenue from products sold is recognized when risk of ownership transfers to customers, generally upon shipment. Each product has a standalone selling price that is determined through analysis of various factors including market data, historical costs and product lifecycle status. Payments are generally due prior to shipment or within a short-term period.

Contract Balances

The receivables and unearned revenue under these contracts were $134.9 million and $32.3 million, respectively, as of June 30, 2018. These balances are included in premiums and accounts receivable and the accounts payable and other liabilities, respectively, in the consolidated balance sheet. Revenue from service contracts and sales of net assets underlying the continuing business, as well as the future compensation for our performance obligations to write and renew certain policies for a period of time. The reinsurance for existing claims liabilities (retroactive component) resulted in a loss when considering the amounts paid for reinsurance premiums (assets we transferred to Sun Life) exceeded the recorded liabilities related to the underlying reinsurance contracts. The Company also recognized realized gains associated with the fair value of assets transferred to Sun Life (which offset losses on the retroactive component). Based on the allocation of the consideration and the resultant gains and losses, most of the gains are expected to be recognized over the next several years.

The terms “deferred gain” and "amortization of deferred gain" broadly reflect the multiple transaction elements and earnings thereof, inclusive of the expected and actual income resulting from the reinsurance subject to prospective accounting, income expected to be earned related to the deferred gains associated with long-duration contracts, and the expected recognition of deferred revenues associated with our performance obligations.

The total deferred gain amount (representing $520.4 of the total $656.5 of original estimated gains) has been and will continue to be recognized as revenue over the contract period in proportion to the amount of insurance coverage provided, including estimated contractual renewals pursuant to rate guarantees. The ultimate amortization pattern will be dependent on a number of factors including the timing of when Sun Life commences directly writing and renewing policies and the sales and persistency on business the Company is obligated to write and renew in the interim.

~~The following represents a summary of the pre-tax gain~~products recognized during the three and six months ended June 30, 2018 that was included in unearned revenue as of December 31, 2017 was $4.5 million and ~~2016 by transaction component,~~$13.0 million, respectively.

In certain circumstances, the Company pays up-front costs in connection with client contracts where the Company can demonstrate future economic benefit. The Company records such payments as ~~well as~~intangible assets that are subject to periodic recoverability assessments based on the performance of the related ~~classification within the financial statements:~~

Three Months Ended June 30, Six Months Ended June 30,
2017 2016 2017 2016
Gain on sale of entities, net of transaction costs $ —
$ —
$ —
$ 41.1
Novations, resulting in recognized gains (a) —
—
—
60.9
Loss on retroactive reinsurance component, before
  realized gains (b)
—
—
—
(128.7 )
Net loss prior to realized gains on transferred securities
  supporting retroactive component (c)
—
—
—
(26.7 )
Realized gains on transferred securities supporting
  retroactive component (b)
—
—
—
146.7
Amortization of deferred gains (d) 20.6
122.8
54.8
167.4
Total $ 20.6
$ 122.8
$ 54.8
$ 287.4


~~(a)~~	~~Novations of certain insurance policies directly to Sun Life allowed for immediate gain recognition.~~

~~(b)~~

Reinsurance of existing claims liabilities requires retroactive accounting necessitating losses to be recognized immediately. However, upon transfer of the associated assets supporting the liabilities, the Company recognized realized gains which more than offset the retroactive losses. The Company was required to classify the realized gains as part of net realized gains on investments, within the consolidated statements of operations.


~~(c)~~	~~Amount classified within underwriting, general and administrative expenses in the consolidated statements of operations.~~


~~(d)~~	Amount classified as amortization of deferred gains and gains on disposal of businesses within the consolidated statements of operations. The six months ended June 30, 2017 amount includes subsequent novations of $1.4 that allowed immediate gain recognition.

~~The remaining unamortized deferred gain as~~contracts. As of June 30, ~~2017 was $101.3. The~~2018, the Company has approximately $13.6 million of such intangible assets that will ~~review and evaluate~~be expensed ratably over the ~~estimates affecting~~term of the ~~deferred gain each period or when significant information affecting the estimates becomes known, and will adjust the prospective revenue to be recognized accordingly.~~client contracts.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

~~6. Acquisitions~~

~~Assurant, Inc.~~

~~Notes to Consolidated Financial Statements (unaudited)~~

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

7. Investments

The following tables show the cost or amortized cost, gross unrealized gains and losses, fair value and other-than-temporary impairment (“OTTI”) included within accumulated other comprehensive income of the Company's fixed maturity ~~and equity~~ securities as of the dates indicated:


												June 30, 2018
												Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		OTTI in AOCI (a)
Fixed maturity securities:
U.S. government and government agencies and authorities												$	184.1	$	2.6	$	(2.1	)	$	184.6	$	—
States, municipalities and political subdivisions												461.6		17.9		(1.1		)	478.4		—
Foreign governments												858.4		62.8		(1.6		)	919.6		—
Asset-backed												494.7		1.2		(0.7		)	495.2		—
Commercial mortgage-backed												256.4		0.3		(2.8		)	253.9		—
Residential mortgage-backed												1,241.4		16.8		(21.4		)	1,236.8		5.6
U.S. corporate												5,198.1		365.8		(43.7		)	5,520.2		15.8
Foreign corporate												2,082.3		138.4		(11.9		)	2,208.8		—
Total fixed maturity securities												$	10,777.0	$	605.8	$	(85.3	)	$	11,297.5	$	21.4

	June 30, 2017											December 31, 2017
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		OTTI in AOCI (a)		Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		OTTI in AOCI (a)
Fixed maturity securities:
U.S. government and government agencies and authorities	$	177.3	$	3.6	$	(0.5	)	$	180.4	$	—	$	180.6	$	3.2	$	(1.2	)	$	182.6	$	—
States, municipalities and political subdivisions	394.3		29.1		(0.2		)	423.2		—		302.3		24.0		(0.1		)	326.2		—
Foreign governments	522.5		74.4		(0.2		)	596.7		—		524.8		72.3		(0.3		)	596.8		—
Asset-backed	47.0		1.1		(0.1		)	48.0		1.1		188.4		1.9		(0.1		)	190.2		1.0
Commercial mortgage-backed	41.9		0.3		(1.0		)	41.2		—		38.6		0.2		(0.7		)	38.1		—
Residential mortgage-backed	1,122.4		41.4		(6.2		)	1,157.6		11.6		1,084.2		32.5		(7.3		)	1,109.4		9.2
U.S. corporate	4,695.5		546.2		(4.1		)	5,237.6		16.2		4,774.2		602.1		(5.0		)	5,371.3		17.4
Foreign corporate	1,705.7		191.1		(2.1		)	1,894.7		—		1,663.4		188.6		(4.0		)	1,848.0		—
Total fixed maturity securities	$	8,706.6	$	887.2	$	(14.4	)	$	9,579.4	$	28.9	$	8,756.5	$	924.8	$	(18.7	)	$	9,662.6	$	27.6
Equity securities:
Common stocks	$	7.9	$	7.1	$	—		$	15.0	$	—	$	9.3	$	8.4	$	—		$	17.7	$	—
Non-redeemable preferred stocks	349.0		50.2		(0.3		)	398.9		—		307.0		43.8		(0.5		)	350.3		—
Total equity securities	$	356.9	$	57.3	$	(0.3	)	$	413.9	$	—	$	316.3	$	52.2	$	(0.5	)	$	368.0	$	—

	December 31, 2016
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		OTTI in AOCI (a)
Fixed maturity securities:
U.S. government and government agencies and authorities	$	172.8	$	3.4	$	(1.3	)	$	174.9	$	—
States, municipalities and political subdivisions	446.9		29.6		(0.4		)	476.1		—
Foreign governments	508.9		60.5		(0.9		)	568.5		—
Asset-backed	2.6		1.2		(0.1		)	3.7		1.1
Commercial mortgage-backed	39.3		0.1		(1.0		)	38.4		—
Residential mortgage-backed	1,071.2		38.1		(8.0		)	1,101.3		12.8
U.S. corporate	5,022.7		454.1		(15.6		)	5,461.2		15.6
Foreign corporate	1,606.4		147.2		(5.6		)	1,748.0		2.2
Total fixed maturity securities	$	8,870.8	$	734.2	$	(32.9	)	$	9,572.1	$	31.7
Equity securities:
Common stocks	$	11.9	$	8.9	$	—		$	20.8	$	—
Non-redeemable preferred stocks	369.9		31.8		(1.1		)	400.6		—
Total equity securities	$	381.8	$	40.7	$	(1.1	)	$	421.4	$	—


(a)	Represents the amount of OTTI recognized in ~~accumulated other comprehensive income (“AOCI”).~~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.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

The Company's states, municipalities and political subdivisions holdings are highly diversified across the U.S. ~~and Puerto Rico,~~, with no individual state’s exposure (including both general obligation and revenue securities) exceeding 0.5% and 0.4% of the overall investment portfolio as of June 30, ~~2017~~2018 and December 31, ~~2016.~~2017, respectively. As of June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, the securities include general obligation and revenue bonds issued by states, cities, counties, school districts and similar issuers, including ~~$201.5~~$98.3 million and ~~$215.3,~~$137.7 million, respectively, of advance refunded or escrowed-to-maturity bonds (collectively referred to as “pre-refunded 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, ~~2017~~2018 and December 31, ~~2016,~~2017, revenue bonds account for ~~48%~~60% and ~~46%~~53% 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 education, health care, highway, water, airport and marina, specifically pledged tax revenues, and other miscellaneous sources such as bond banks, finance authorities and appropriations.

The Company’s investments in foreign government fixed maturity securities are held mainly in countries and currencies where the Company has policyholder liabilities, which allow the assets and liabilities to be more appropriately matched. As of June 30, 2018, approximately 52%, 18% and 16% of the foreign government securities were held in Canadian government/provincials and the governments of Brazil and the United Kingdom, respectively. As of December 31, 2017, approximately 79%, 12% and 4% of the foreign government securities were held in the Canadian government/provincials and the governments of Brazil and Germany, respectively. As of December 31, 2016, approximately 78%, 11% and 4% of the foreign government securities were held in the Canadian government/provincials and the governments of Brazil and Germany, respectively. No other country represented more than 2%6% and 3% of the Company's foreign government securities as of June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively.

The Company has European investment exposure in its corporate fixed maturity ~~and equity~~ securities of ~~$724.6~~$785.2 million with a net unrealized gain of ~~$72.4~~$31.4 million as of June 30, ~~2017~~2018 and ~~$693.3~~$578.4 million with a net unrealized gain of ~~$54.2~~$58.9 million as of December 31, ~~2016.~~2017. Approximately ~~24%~~31% and ~~23%~~24% of the corporate fixed maturity European exposure is held in the financial industry as of June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively. The Company's largest European country exposure (the United Kingdom) represented approximately 4% of the fair value of the Company's corporate fixed maturity securities as of June 30, ~~2017~~2018 and December 31, 2016. Approximately 7% of the fair value of the corporate European securities are pound and euro-denominated and are not hedged to U.S. dollars, but held to support related foreign-denominated liabilities of the Company's international businesses.2017. 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 has exposure to the energy sector in its corporate fixed maturity securities of $641.2 with a net unrealized gain of $60.8 as of June 30, 2017 and $641.9 with a net unrealized gain of $51.6 as of December 31, 2016. Approximately 85% and 84% of the energy exposure is rated as investment grade as of June 30, 2017 and December 31, 2016, respectively.

~~The~~ cost or amortized cost and fair value of fixed maturity securities as of June 30, ~~2017~~2018 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		Cost or Amortized Cost		Fair Value
Due in one year or less	$	268.6	$	271.9	$	320.5	$	322.1
Due after one year through five years	1,670.4		1,730.4		2,276.5		2,294.7
Due after five years through ten years	1,889.0		1,985.0		2,314.2		2,338.8
Due after ten years	3,667.3		4,345.3		3,873.3		4,356.0
Total	7,495.3		8,332.6		8,784.5		9,311.6
Asset-backed	47.0		48.0		494.7		495.2
Commercial mortgage-backed	41.9		41.2		256.4		253.9
Residential mortgage-backed	1,122.4		1,157.6		1,241.4		1,236.8
Total	$	8,706.6	$	9,579.4	$	10,777.0	$	11,297.5

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

The following table sets forth the net realized gains (losses), including OTTI, recognized in the statement of ~~operations as follows:~~operations:


	Three Months Ended June 30,					Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016		2017			2016			2018			2017			2018			2017
Net realized gains (losses) related to sales and other:
Net realized gains (losses) on investments:
Fixed maturity securities	$	11.9		$	6.7	$	14.5		$	145.8		$	(7.6	)	$	11.9		$	(10.2	)	$	14.5
Equity securities(1)	1.5			3.3		3.8			13.1			(5.9		)	1.5			(3.7		)	3.8
Commercial mortgage loans on real estate	—			9.0		—			21.5
Other investments	(0.1		)	2.6		(1.2		)	3.6			1.2			(0.1		)	2.5			(1.2		)
Total net realized gains related to sales and other (a)	13.3			21.6		17.1			184.0
Consolidated investment entities (2)												0.9			—			0.5			—
Total net realized gains (losses) on investments												(11.4		)	13.3			(10.9		)	17.1
Net realized losses related to other-than-temporary impairments:
Fixed maturity securities	—			—		(0.4		)	(0.7		)	—			—			—			(0.4		)
Other investments	(0.1		)	—		(0.1		)	—			—			(0.1		)	—			(0.1		)
Total net realized losses related to other-than- temporary impairments	(0.1		)	—		(0.5		)	(0.7		)	—			(0.1		)	—			(0.5		)
Total net realized gains	$	13.2		$	21.6	$	16.6		$	183.3
Total net realized gains (losses)												$	(11.4	)	$	13.2		$	(10.9	)	$	16.6


~~(a)~~(1)	Six months ended June 30, ~~2016~~2018 includes a $7.8 million gain on one equity investment holding accounted for under the measurement alternative based on an observable market event where the implied value increased based on a new investment. Equity investments accounted for under the measurement alternative are included within Other investments on the consolidated balance sheet.


(2)	Consists of net ~~gains includes $146.7 related~~realized losses from the change in fair value of the Company's direct investment in collateralized loan obligations ("CLOs"). Refer to ~~the sale of AEB as described in~~ Note 5.8 - Variable Interest Entities for further detail.

The following table sets forth the portion of unrealized gains related to equity securities during the three and six months ended June 30, 2018:



	Three Months Ended June 30,			Six Months Ended June 30,
	2018			2018
Net losses recognized on equity securities	$	(5.9	)	$	(3.7	)
Less: Net realized gains related to sales of equity securities	2.3			3.7
Total unrealized losses on equity securities held (1)	$	(8.2	)	$	(7.4	)


(1)	Net gains for 2018 are required to be reported through the income statement in accordance with the 2018 accounting guidance on financial instruments. Net unrealized gains of $9.0 million and $17.4 million in the three and six months ended June 30, 2017, respectively, were reported through AOCI.

The carrying value of equity securities accounted for under the measurement alternative was $47.8 million and $36.1 million as of June 30, 2018 and December 31, 2017, respectively.

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 June 30, 2018 and ~~equity~~December 31, 2017 were as follows:



	June 30, 2018
	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	$	112.7	$	(1.5	)	$	35.9	$	(0.6	)	$	148.6	$	(2.1	)
States, municipalities and political subdivisions	150.8		(0.9		)	3.3		(0.2		)	154.1		(1.1		)
Foreign governments	296.8		(1.4		)	6.5		(0.2		)	303.3		(1.6		)
Asset-backed	225.4		(0.7		)	—		—			225.4		(0.7		)
Commercial mortgage-backed	181.1		(1.7		)	12.0		(1.1		)	193.1		(2.8		)
Residential mortgage-backed	677.9		(12.6		)	161.1		(8.8		)	839.0		(21.4		)
U.S. corporate	2,037.9		(40.9		)	49.5		(2.8		)	2,087.4		(43.7		)
Foreign corporate	760.7		(10.1		)	63.6		(1.8		)	824.3		(11.9		)
Total fixed maturity securities	$	4,443.3	$	(69.8	)	$	331.9	$	(15.5	)	$	4,775.2	$	(85.3	)



	December 31, 2017
	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	$	104.2	$	(0.7	)	$	43.3	$	(0.5	)	$	147.5	$	(1.2	)
States, municipalities and political subdivisions	—		—			2.4		(0.1		)	2.4		(0.1		)
Foreign governments	24.4		(0.2		)	0.8		(0.1		)	25.2		(0.3		)
Asset-backed	27.6		(0.1		)	—		—			27.6		(0.1		)
Commercial mortgage-backed	—		—			12.4		(0.7		)	12.4		(0.7		)
Residential mortgage-backed	217.3		(2.4		)	162.9		(4.9		)	380.2		(7.3		)
U.S. corporate	562.8		(4.5		)	30.0		(0.5		)	592.8		(5.0		)
Foreign corporate	266.7		(3.5		)	19.0		(0.5		)	285.7		(4.0		)
Total fixed maturity securities	$	1,203.0	$	(11.4	)	$	270.8	$	(7.3	)	$	1,473.8	$	(18.7	)
Equity securities:
Non-redeemable preferred stock	$	13.8	$	(0.2	)	$	8.7	$	(0.3	)	$	22.5	$	(0.5	)

Total gross unrealized losses represent approximately 2% and 1% of the aggregate fair value of the related securities with such unrealized losses as of June 30, 2018 and December 31, 2017, respectively. Approximately 82% and 61% of these gross unrealized losses have been in a continuous loss position for less than twelve months as of June 30, 2018 and December 31, 2017, respectively. The total gross unrealized losses are comprised of 3,145 and 679 individual securities as of June 30, ~~2017~~2018 and December 31, ~~2016 were~~2017, respectively. In accordance with its policy, the Company concluded that for these securities, other-than-temporary impairments of the gross unrealized losses was not warranted as ~~follows:~~of June 30, 2018 and December 31, 2017.

June 30, 2017
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
$ 100.9
$ (0.5 ) $ —
$ —
$ 100.9
$ (0.5 )
States, municipalities and political
subdivisions
4.9
(0.2 ) —
—
4.9
(0.2 )
Foreign governments 26.9
(0.2 ) —
—
26.9
(0.2 )
Asset-backed —
—
1.1
(0.1 ) 1.1
(0.1 )
Commercial mortgage-backed 31.4
(1.0 ) —
—
31.4
(1.0 )
Residential mortgage-backed 269.9
(6.1 ) 2.1
(0.1 ) 272.0
(6.2 )
U.S. corporate 313.4
(3.2 ) 21.2
(0.9 ) 334.6
(4.1 )
Foreign corporate 165.4
(1.8 ) 3.5
(0.3 ) 168.9
(2.1 )
Total fixed maturity securities $ 912.8
$ (13.0 ) $ 27.9
$ (1.4 ) $ 940.7
$ (14.4 )
Equity securities:
Non-redeemable preferred stocks $ 3.4
$ (0.3 ) $ —
$ —
$ 3.4
$ (0.3 )

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, 2018, approximately 35% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California and Oregon, and the Canadian province of Ontario. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three~~(In millions, except number of shares and ~~Six Months Ended~~per share amounts)

its debtors to repay their loans. The outstanding balance of commercial mortgage loans range in size from less than $0.1 million to $12.6 million as of June 30, 2018 and less than $0.1 million to $12.7 million as of December 31, 2017.

8. Variable Interest Entities

In the normal course of business, the Company is involved with various types of investment entities which may be considered variable interest entities ("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 our subsidiaries is registered with the U.S. Securities and Exchange Commission (the "SEC") as an investment adviser and manages and invests in CLOs and a real estate fund and may conduct other forms of investment activities. The Company determined the CLOs and real estate fund are VIEs and consolidated each because the Company was deemed to be 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 performance of the entities, and (ii) its economic interest in the entities, which exposes it to losses and the right to receive benefits that could potentially be significant to the entities.

In connection with planned 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. The carrying value of the CLO liabilities is equal to the fair value of the CLO assets (senior secured leveraged loans) as the assets have more observable fair values. The CLO liabilities are reduced by the beneficial interests the Company retains in the CLO. CLO earnings attributable to the Company’s shareholders are measured by the change 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 creditors of the Company and can only be used to settle the obligations of the CLOs. The liabilities of the CLOs are non-recourse to the Company and the Company has no obligations to satisfy the liabilities of the CLOs.

At June 30, 2018, the Company and its subsidiaries hold 6.0% of the most subordinated debt tranche of one CLO that closed in November 2017. In April 2018, a second CLO closed and the Company and its subsidiaries hold 9.4% of the most subordinated debt tranche of the CLO. At June 30, 2018, a third CLO structure was funded with $55.0 million in contributions and the fair value of borrowings from the short-term warehouse credit facilities was $174.3 million. The carrying value of the Company’s investment in the three CLOs was $116.2 million as of June 30, 2018.

Real Estate Fund: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 this fund in the form of an equity interest. The carrying value of the Company’s investment in the real estate fund was $83.6 million with unfunded commitments of $4.1 million as of June 30, 2018.

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 9 for the definition of the three levels of the fair value hierarchy. The following table presents the balances of assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis. Amounts presented are as of June 30, 2018 and December 31, 2017, ~~and 2016~~respectively.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

December 31, 2016
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
$ 91.0
$ (1.3 ) $ —
$ —
$ 91.0
$ (1.3 )
States, municipalities and political
subdivisions
16.9
(0.4 ) —
—
16.9
(0.4 )
Foreign governments 98.8
(0.9 ) —
—
98.8
(0.9 )
Asset-backed —
—
1.0
(0.1 ) 1.0
(0.1 )
Commercial mortgage-backed 33.2
(1.0 ) —
—
33.2
(1.0 )
Residential mortgage-backed 347.5
(7.9 ) 2.2
(0.1 ) 349.7
(8.0 )
U.S. corporate 940.4
(13.1 ) 34.1
(2.5 ) 974.5
(15.6 )
Foreign corporate 227.3
(4.6 ) 7.6
(1.0 ) 234.9
(5.6 )
Total fixed maturity securities $ 1,755.1
$ (29.2 ) $ 44.9
$ (3.7 ) $ 1,800.0
$ (32.9 )
Equity securities:
Non-redeemable preferred stocks $ 64.4
$ (1.0 ) $ 1.9
$ (0.1 ) $ 66.3
$ (1.1 )

Total gross unrealized losses represent approximately 2% of the aggregate fair value of the related securities as of June 30, 2017 and December 31, 2016. Approximately 90% and 89% of these gross unrealized losses have been in a continuous loss position for less than twelve months as of June 30, 2017 and December 31, 2016, respectively. The total gross unrealized losses



	June 30, 2018
	Total		Level 1			Level 2		Level 3
Financial Assets
Investments:
Cash and cash equivalents	$	35.0	$	35.0	(1)	$	—	$	—
Corporate debt securities	1,098.2		—			1,098.2		—
Real estate fund	102.5		—			—		102.5
Total financial assets	$	1,235.7	$	35.0		$	1,098.2	$	102.5

Financial Liabilities
Collateralized loan obligation notes	$	941.3	$	—		$	941.3	$	—
Total financial liabilities	$	941.3	$	—		$	941.3	$	—



	December 31, 2017
	Total		Level 1			Level 2		Level 3
Financial Assets
Investments:
Cash and cash equivalents	$	54.5	$	54.5	(1)	$	—	$	—
Corporate debt securities	570.3		—			570.3		—
Real estate fund	84.7		—			—		84.7
Total financial assets	$	709.5	$	54.5		$	570.3	$	84.7

Financial Liabilities
Collateralized loan obligation notes	$	450.7	$	—		$	450.7	$	—
Total financial liabilities	$	450.7	$	—		$	450.7	$	—


(1)	Amounts consist of money market funds.

Level 2 Securities

Corporate debt securities: These assets are comprised of 482 and 796 individual securities as of June 30, 2017 and December 31, 2016, respectively. In accordance with its policy, the Company concluded that for these securities, other-than-temporary impairments of the gross unrealized losses was not warranted as of June 30, 2017 and December 31, 2016.

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, 2017, approximately 35% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Oregon, and Texas. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans range in size from less than $0.1 to $12.5 as of June 30, 2017 and from less than $0.1 to $12.6 as of December 31, 2016.

~~Variable Interest Entities ("VIE")~~

A VIE is a legal entity which does not have sufficient equity at risk to allow the entity to finance its activities without additional financial support or in which the equity investors, as a group, do not have the characteristic of a controlling financial interest. A company is considered the primary beneficiary of, and therefore must consolidate, a VIE if it has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.

In January 2017, one of our subsidiaries registered with the U.S. Securities and Exchange Commission (the "SEC") as an investment adviser and such subsidiary (or one of its affiliates) intends to manage and invest in collateralized loan obligations (“CLO”), and other forms of investment activities. In connection with the planned formation of a new CLO structure, a special purpose entity ("SPE") was formed and capitalized with $40.0 in equity from the Company’s wholly owned subsidiaries to begin purchasing senior secured leveraged loans. In second quarter 2017, the SPE entered into a short-term warehousing credit facility to fund the purchase of additional senior secured leveraged loans. The ~~warehousing credit facility agreement allows for~~Company values these securities using estimates of fair value from a ~~maximum commitment~~pricing service which utilizes the market valuation technique. The primary observable market inputs used by the pricing service are prices of ~~up to $350.0.~~reported trades from dealers. The ~~Company determined that~~fair value is calculated using a simple average of the ~~SPE is a VIE and consolidated the SPE because~~prices received.

Collateralized loan obligation notes: As the Company ~~was deemed to be~~elected the ~~primary beneficiary of this entity due to (i) its role as collateral manager, which gives it~~measurement alternative, the ~~power to direct the activities that most significantly impact the economic performance~~carrying value of the ~~SPE, and (ii) its economic interest in the entity, which exposes it to losses and the right to receive benefits that could potentially be significant~~CLO liabilities is set equal to the ~~SPE.~~fair value of the CLO assets. 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. The market, income and cost approach valuation techniques are used to calculate fair value as appropriate given the type of real estate property, as well as the use of independent external appraisals. Significant unobservable inputs, including capitalization rates, discount rates, market comparables, expense growth rates, leasing assumptions and replacement costs, are used as appropriate to calculate fair value.

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, 2018:

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

In the consolidated balance sheet as of June 30, 2017, the Company recorded $166.1 in Other investments related to the senior secured leverage loans at fair value in the SPE and $126.7 of liabilities (consisting of $57.7 in Accounts payable and other liabilities and $69.0 in Debt) related to obligations from unsettled senior secured leverage loan purchases and debt related to the warehousing credit facility. The assets of the SPE are legally isolated from the creditors of the Company and can only be used to settle the obligations of the SPE. The liabilities of the SPE are non-recourse to the Company and the Company has no obligations to satisfy the liabilities of the SPE. Upon the anticipated closing of the CLO structure, all warehoused assets are expected to be transferred to the permanent CLO structure and the warehousing credit facility to be repaid.



	Three Months Ended June 30, 2018			Six Months Ended June 30, 2018
Balance, beginning of period	$	86.8		$	84.7
Purchases	23.0			23.0
Sales	(6.8		)	(6.8		)
Total (loss) income included in earnings	(0.5		)	1.6
Balance, end of period	$	102.5		$	102.5

8.9. Fair Value Disclosures

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

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

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

The levels of the fair value hierarchy are described below:

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

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

~~Three~~Level 3 inputs are unobservable but are significant to the fair value measurement for the asset, and ~~Six Months Ended June 30, 2017 and 2016~~

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

include situations where there is little, if any, market activity for the asset. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset.

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, ~~2017~~2018 and December 31, ~~2016.~~2017. The amounts presented below for Other investments, Cash equivalents, Other assets, Assets and Liabilities held in 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, American Security Insurance Company Investment Plan, Assurant Deferred Compensation Plan, modified coinsurance arrangements and other derivatives. Other liabilities are comprised of investments in the Assurant Investment Plan, contingent considerations related to business combinations and other derivatives. The fair value amount and the majority of the associated levels presented for Other investments and Assets and Liabilities held in separate accounts are received directly from third parties.

June 30, 2017
Total Level 1 Level 2 Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and
  authorities
$ 180.4
$ —
   $ 180.4
   $ —

State, municipalities and political subdivisions 423.2
—
   423.2
   —

Foreign governments 596.7
1.1
   595.6
   —

Asset-backed 48.0
—
   2.9
   45.1

Commercial mortgage-backed 41.2
—
   9.8
   31.4

Residential mortgage-backed 1,157.6
—
   1,157.6
   —

U.S. corporate 5,237.6
—
5,189.0
48.6

Foreign corporate 1,894.7
—
   1,844.7
   50.0

Equity securities:
Common stocks 15.0
14.3
   0.7
   —

Non-redeemable preferred stocks 398.9
—
   396.6
   2.3

Short-term investments 198.9
72.2
(2) 126.7
—

Other investments 436.7
71.4
(1) 364.1
(3) 1.2
(4)
Cash equivalents 447.2
424.9
(2) 22.3
—

Other assets 3.0
—
   —
3.0
(5)
Assets held in separate accounts 1,740.5
1,562.8
(1) 177.7
(3) —

Total financial assets $ 12,819.6
$ 2,146.7
   $ 10,491.3
   $ 181.6


Financial Liabilities
Other liabilities $ 136.7
$ 71.4
(1) $ 5.6
(5) $ 59.7
(6)
Liabilities related to separate accounts 1,740.5
1,562.8
(1) 177.7
(3) —

Total financial liabilities $ 1,877.2
$ 1,634.2
   $ 183.3

$ 59.7

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

December 31, 2016
Total Level 1 Level 2 Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and
authorities
$ 174.9
$ —
$ 174.9
$ —

State, municipalities and political subdivisions 476.1
—
476.1
—

Foreign governments 568.5
1.0
567.5
—

Asset-backed 3.7
—
3.7
—

Commercial mortgage-backed 38.4
—
10.6
27.8

Residential mortgage-backed 1,101.3
—
1,101.3
—

U.S. corporate 5,461.2
—
5,416.7
44.5

Foreign corporate 1,748.0
—
1,714.7
33.3

Equity securities:
Common stocks 20.8
20.1
0.7
—

Non-redeemable preferred stocks 400.6
—
398.4
2.2

Short-term investments 227.7
52.7
(2) 175.0
—

Other investments 265.1
64.9
(1) 196.7
(3) 3.5
(4)
Cash equivalents 646.6
644.6
(2) 2.0
—

Other assets 0.6
—
0.3
(5) 0.3
(5)
Assets held in separate accounts 1,650.2
1,472.9
(1) 177.3
(3) —

Total financial assets $ 12,783.7
$ 2,256.2
$ 10,415.9
$ 111.6

Financial Liabilities
Other liabilities $ 119.9
$ 64.9
(1) $ 0.9
(5) $ 54.1
(6)
Liabilities related to separate accounts 1,650.2
1,472.9
(1) 177.3
(3) —

Total financial liabilities $ 1,770.1
$ 1,537.8
$ 178.2
$ 54.1



	June 30, 2018
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities	$	184.6	$	—		$	184.6		$	—
State, municipalities and political subdivisions	478.4		—			478.4			—
Foreign governments	919.6		0.6			919.0			—
Asset-backed	495.2		—			450.1			45.1
Commercial mortgage-backed	253.9		—			194.0			59.9
Residential mortgage-backed	1,236.8		—			1,236.8			—
U.S. corporate	5,520.2		—			5,484.8			35.4
Foreign corporate	2,208.8		—			2,158.2			50.6
Equity securities:
Mutual funds	46.0		46.0			—			—
Common stocks	16.6		15.9			0.7			—
Non-redeemable preferred stocks	323.2		—			321.0			2.2
Short-term investments	343.6		91.0		(2)	252.6			—
Other investments	243.5		74.0		(1)	168.0		(3)	1.5		(4)
Cash equivalents	637.5		469.0		(2)	168.5		(3)	—
Other assets	3.1		—			1.5			1.6		(5)
Assets held in separate accounts	1,824.0		1,674.0		(1)	150.0		(3)	—
Total financial assets	$	14,735.0	$	2,370.5		$	12,168.2		$	196.3

Financial Liabilities
Other liabilities	$	119.4	$	74.0	(1)	$	—	(5)	$	45.4	(6)
Liabilities related to separate accounts	1,824.0		1,674.0		(1)	150.0		(3)	—
Total financial liabilities	$	1,943.4	$	1,748.0		$	150.0		$	45.4

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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



	December 31, 2017
	Total		Level 1			Level 2			Level 3
Financial Assets
Fixed maturity securities:
U.S. government and government agencies and authorities	$	182.6	$	—		$	182.6		$	—
State, municipalities and political subdivisions	326.2		—			326.2			—
Foreign governments	596.8		1.0			595.8			—
Asset-backed	190.2		—			150.8			39.4
Commercial mortgage-backed	38.1		—			9.5			28.6
Residential mortgage-backed	1,109.4		—			1,109.4			—
U.S. corporate	5,371.3		—			5,350.2			21.1
Foreign corporate	1,848.0		—			1,802.7			45.3
Equity securities:
Common stocks	17.7		17.0			0.7			—
Non-redeemable preferred stocks	350.3		—			348.1			2.2
Short-term investments	284.1		141.6		(2)	142.5			—
Other investments	253.9		71.2		(1)	172.7		(3)	10.0		(4)
Cash equivalents	544.9		519.1		(2)	25.8		(3)	—
Other assets	2.1		—			—			2.1		(5)
Assets held in separate accounts	1,800.6		1,635.2		(1)	165.4		(3)	—
Total financial assets	$	12,916.2	$	2,385.1		$	10,382.4		$	148.7

Financial Liabilities
Other liabilities	$	128.7	$	71.2	(1)	$	1.0	(5)	$	56.5	(6)
Liabilities related to separate accounts	1,800.6		1,635.2		(1)	165.4		(3)	—
Total financial liabilities	$	1,929.3	$	1,706.4		$	166.4		$	56.5


(1)	~~Mainly~~Primarily includes mutual ~~funds.~~funds and related obligations.


(2)	~~Mainly~~Primarily includes money market funds.


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


(4)	~~Mainly~~Primarily includes fixed maturity securities and other derivatives.


(5)	~~Mainly~~Primarily includes other ~~derivatives.~~derivative assets and liabilities.


(6)	~~Mainly~~Primarily includes contingent consideration liabilities related to business combinations and other derivatives.


(7)	Primarily includes fixed maturity securities and certificates of deposit.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

The following tables disclose the carrying value, fair value amount and hierarchy level of the financial instruments that are not ~~recognized or are not~~ carried at fair value in the consolidated balance sheets:


	June 30, 2017										June 30, 2018
			Fair Value										Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3		Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	624.0	$	635.5	$	—	$	—	$	635.5	$	720.1	$	716.0	$	—	$	—	$	716.0
Policy loans	37.7		37.7		37.7		—		—
Other investments	42.0		42.0		—		—		42.0		94.7		94.7		35.0		—		59.7
Other assets											45.0		45.0		—		—		45.0
Total financial assets	$	703.7	$	715.2	$	37.7	$	—	$	677.5	$	859.8	$	855.7	$	35.0	$	—	$	820.7
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	641.6	$	654.0	$	—	$	—	$	654.0	$	608.4	$	608.5	$	—	$	—	$	608.5
Funds withheld under reinsurance	153.4		153.4		153.4		—		—		347.1		347.1		347.1		—		—
Debt	1,136.6		1,246.4		—		1,246.4		—		2,004.8		2,084.9		—		2,084.9		—
Total financial liabilities	$	1,931.6	$	2,053.8	$	153.4	$	1,246.4	$	654.0	$	2,960.3	$	3,040.5	$	347.1	$	2,084.9	$	608.5

	December 31, 2016										December 31, 2017
			Fair Value										Fair Value
	Carrying Value		Total		Level 1		Level 2		Level 3		Carrying Value		Total		Level 1		Level 2		Level 3
Financial Assets
Commercial mortgage loans on real estate	$	624.0	$	634.9	$	—	$	—	$	634.9	$	670.2	$	679.2	$	—	$	—	$	679.2
Policy loans	38.5		38.5		38.5		—		—
Other investments	36.3		36.3		—		—		36.3		84.4		84.4		36.3		—		48.1
Total financial assets	$	698.8	$	709.7	$	38.5	$	—	$	671.2	$	754.6	$	763.6	$	36.3	$	—	$	727.3
Financial Liabilities
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)	$	651.0	$	680.4	$	—	$	—	$	680.4	$	634.3	$	642.5	$	—	$	—	$	642.5
Funds withheld under reinsurance	111.7		111.7		111.7		—		—		179.8		179.8		179.8		—		—
Debt	1,067.0		1,159.7		—		1,159.7		—		1,068.2		1,174.4		—		1,174.4		—
Total financial liabilities	$	1,829.7	$	1,951.8	$	111.7	$	1,159.7	$	680.4	$	1,882.3	$	1,996.7	$	179.8	$	1,174.4	$	642.5


(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.

Reinsurance Recoverables Credit Disclosures

A key credit quality indicator for reinsurance is the A.M. Best financial strength ratings of the reinsurer. The A.M. Best ratings are an independent opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. The A.M. Best ratings for new reinsurance agreements where there is material credit exposure are reviewed at the time of execution. The A.M. Best ratings for existing reinsurance agreements are reviewed on a quarterly basis, or sooner based on developments. The A.M. Best ratings have not changed significantly since December 31, ~~2016.~~2017, except for an increase in reinsurance recoverables that are included in the Not Rated category as a result of the acquisition of TWG. Specifically, legacy TWG reinsurance recoverables included $1.58 billion as of June 30, 2018 related to captive reinsurance arrangements with dealers which are substantially collateralized in the form of a letter of credit, trust account and funds withheld.

An allowance for doubtful accounts for reinsurance recoverables is recorded on the basis of periodic evaluations of balances due from reinsurers (net of collateral), reinsurer solvency, management’s experience and current economic conditions. ~~The Company carried an allowance for doubtful accounts for reinsurance recoverables of $0.4 as of June 30, 2017 and $0.3 as of December 31, 2016.~~

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

9.The Company carried an allowance for doubtful accounts for reinsurance recoverables of $0.3 million as of June 30, 2018 and December 31, 2017.

10. Reserves

Reserve Roll Forward

The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and is comprised of case and incurred but not reported ("IBNR") reserves.

Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively.

The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented.


	For the Six Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2018			2017
Claims and benefits payable, at beginning of period	$	3,301.2		$	3,896.7		$	3,782.2		$	3,301.2
Less: Reinsurance ceded and other	(2,718.2		)	(1,496.5		)	(3,193.3		)	(2,718.2		)
Net claims and benefits payable, at beginning of period	583.0			2,400.2			588.9			583.0
Acquired reserves as of Acquisition Date (1)							142.9			—
Incurred losses and loss adjustment expenses related to:
Current year	856.3			1,094.7			938.1			856.3
Prior year's interest	—			9.9
Prior years	(60.0		)	(167.8		)	(30.6		)	(60.0		)
Total incurred losses and loss adjustment expenses	796.3			936.8			907.5			796.3
Paid losses and loss adjustment expenses related to:
Current year	556.0			722.1			624.6			556.0
Prior years	262.8			1,974.5			336.4			262.8
Total paid losses and loss adjustment expenses	818.8			2,696.6			961.0			818.8
Net claims and benefits payable, at end of period	560.5			640.4			678.3			560.5
Plus: Reinsurance ceded and other	2,532.8			2,636.3			2,824.8			2,532.8
Claims and benefits payable, at end of period	$	3,093.3		$	3,276.7		$	3,503.1		$	3,093.3


(1)	Acquired reserves from TWG on May 31, 2018 (the Acquisition Date) include $423.5 million of gross claims and benefits payable and $280.6 million of ceded claims and benefits payable. The reserve roll forward includes the activity of TWG from June 1, 2018 to June 30, 2018.

The Company experienced favorable development in both six month periods presented in the roll forward table above. Favorable development ~~from~~in the six months ended June 30, ~~2016~~2018 was comparatively ~~higher~~lower than the six months ended June 30, ~~2017, due primarily to the favorable development on the AEB business sold during the first quarter of 2016~~2017. Global Housing and ~~the runoff of the Assurant Health business. AEB~~Global Lifestyle contributed ~~$42.5~~$29.3 million and $51.7 million to the favorable development during the six months ended June 30, ~~2016. Assurant Health contributed $7.8~~2018 and ~~$47.7~~2017, respectively. Favorable development for Global Housing decreased in 2018 in part due to ~~the~~reduced favorable development ~~as of June 30, 2017~~on catastrophes. Favorable development on catastrophes was $2.2 million and ~~2016, respectively. Global Housing and Global Lifestyle contributed $51.7 and $77.1 to the favorable development during~~$5.2 million for the six months ended June 30, 2018 and 2017, ~~and 2016,~~ respectively. ~~Overall, Global Housing~~Excluding catastrophes, favorable development decreased ~~in 2017 due to the moderating favorable trend in theft and vandalism claims across~~for lender-placed homeowners products ~~partially offset by $5.2~~due to elevated severity on fire claims associated with prior periods and an increase in loss ratios associated with the runoff of ~~favorable~~REO policies. Favorable development ~~related to Hurricane Matthew. Within~~for Global Lifestyle ~~favorable development~~ decreased ~~among~~in 2018 primarily from extended service contracts and credit insurance products, some of which is contractually subject to retrospective commission payments. The reduction was attributable to changing client mix, and consideration of prior development trends when ~~setting~~finalizing year-end ~~2016~~2017 reserves. Another contributing factor to the reduction in favorable

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

development in 2018 was from the continued runoff of the Assurant Health business. Assurant Health contributed $0.7 million in favorable development for the six months ended June 30, 2018 compared to $7.8 million in the comparable 2017 period.

~~10.~~11. Goodwill and Other Intangible Assets

As a result of the May 2018 acquisition of TWG, the Company's Goodwill, VOBA and Other intangible assets increased. Refer to Note 4 - Acquisitions and disclosures below for additional information.

Goodwill

The Company has goodwill attributable to its Global Housing, Global Lifestyle and Global Preneed segments. A roll forward of goodwill by segment is provided below.



	Global Housing			Global Lifestyle			Global Preneed			Consolidated
Balance at December 31, 2017 (1)	$	386.7		$	392.8		$	138.2		$	917.7
Acquisitions (2)	��			1,463.8			—			1,463.8
Impairments (3)	(8.1		)	—			—			(8.1		)
Foreign currency translation and other	—			(3.9		)	(0.3		)	(4.2		)
Balance at June 30, 2018	$	378.6		$	1,852.7		$	137.9		$	2,369.2


(1)	Net of $1.26 billion of accumulated impairment losses.


(2)	Refer to Note 4 for additional information on the TWG acquisition.


(3)	Refer to Note 20 for additional information on the impairment loss on the mortgage solutions business.

VOBA and Other Intangible Assets

VOBA and Other intangible assets were $3,962.5 million and $664.8 million, respectively, at June 30, 2018 and $24.4 million and $288.6 million, respectively, at December 31, 2017. The increases reflect the additions from the TWG acquisition. The following table shows the preliminary purchase price allocation to VOBA and Other intangible assets and the related estimated useful lives.



	Amount		Estimated Useful Life
VOBA	$	3,995.7	9 years

Finite life:
Distribution network	392.4		15 years
Technology based intangibles	57.4		9 years
Total finite life other intangible assets	449.8
Indefinite life:
Licenses	$	11.6	Indefinite
Total other intangible assets	$	461.4

Total amortization of VOBA for the three months ended June 30, 2018 and 2017 was $36.3 million and $2.0 million, respectively, and for the six months ended June 30, 2018 and 2017 was $38.0 million and $4.1 million, respectively. Total amortization of Other intangible assets for the three months ended June 30, 2018 and 2017 was $19.7 million and $18.4 million, respectively, and for the six months ended June 30, 2018 and 2017 was $39.1 million and $36.3 million, respectively. At June 30, 2018, the estimated amortization of VOBA and Other intangible assets for the remainder of 2018, the next five years and thereafter is as follows:

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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



	VOBA						Other Intangible Assets (With Finite Lives)
	Related to TWG Acquisition		Other		Total		Related to TWG Acquisition		Other		Total
July 1 - December 31, 2018	$	210.6	$	3.5	$	214.1	$	7.3	$	30.1	$	37.4
2019	519.6		6.6		526.2		19.4		41.3		60.7
2020	632.2		6.3		638.5		27.6		35.4		63.0
2021	695.9		0.8		696.7		31.3		26.8		58.1
2022	759.4		0.7		760.1		35.0		17.3		52.3
2023	765.7		0.6		766.3		36.2		11.6		47.8
Thereafter	358.3		2.3		360.6		291.0		40.7		331.7
Total	$	3,941.7	$	20.8	$	3,962.5	$	447.8	$	203.2	$	651.0

12. Debt

As of June 30, 2018, we had $2.00 billion of outstanding debt. In addition to the debt issuances described below, we have $350.0 million in senior notes due 2023 and $375.0 million in senior notes due 2034, as well as a $450 million senior revolving credit facility, of which no borrowings have been made.

Debt Issuances

Senior Notes:In March 2018, the Company issued three series of senior notes with an aggregate principal amount of $900.0 million. The first series of senior notes is $300.0 million in principal amount, bears floating interest rate equal to three-month LIBOR plus 1.25% and is payable in a single installment due March 2021 (the “2021 Senior Notes”). The second series is $300.0 million in principal amount, bears interest at 4.20% per year, is payable in a single installment due September 2023 and was issued at a 0.233% discount (the “2023 Senior Notes”). The third series is $300.0 million in principal amount, bears interest at 4.90% per year, is payable in a single installment due March 2028 and was issued at a 0.383% discount (the “2028 Senior Notes”). At any time in whole or from time to time in part, the Company may redeem the 2021 Senior Notes on or after March 2019, the 2023 Senior Notes prior to August 2023 and the 2028 Senior Notes prior to December 2027.

Interest on the 2021 Senior Notes is payable quarterly in March, June, September and December of each year, beginning in June 2018. Interest on the 2023 Senior Notes and 2028 Senior Notes is payable semi-annually in March and September of each year, beginning in September 2018. The interest rate payable on any series of the Senior Notes will be subject to adjustment from time to time, if any of Moody’s Investor Service, Inc. or S&P Global Inc. 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 Levels	Moody's (1)	S&P (1)	Interest Rate Increase (2)
1	Ba1	BB+	25 basis points
2	Ba2	BB	50 basis points
3	Ba3	BB-	75 basis points
4	B1 or below	B+ or below	100 basis points


(1)	Including the equivalent ratings of any substitute rating agency.


(2)	Applies to each rating agency individually.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

Subordinated Notes:In March 2018, the Company issued subordinated notes due March 2048 with principal amount of $400.0 million (the “Subordinated Notes” and, together with the 2021 Senior Notes, 2023 Senior Notes and the 2028 Senior Notes, the “Notes”) which bear interest from March 2018 to March 2028, at an annual rate of 7.00%, payable semi-annually in March and September of each year, beginning in September 2018 and ending in March 2028. The Subordinated Notes will bear interest at an annual rate equal to three-month LIBOR plus 4.135%, payable quarterly in March, June, September and December of each year, beginning in June 2028. The Company may redeem the Subordinated Notes, in whole but not in part, at any time on or after March 2028 and prior to maturity at a redemption price set forth in the subordinated notes indenture, dated as of March 27, 2018 (the "Subordinated Notes Indenture"). At any time prior to March 2028, the Subordinated Notes will be redeemable in whole but not in part after the occurrence of a tax event, rating agency event or regulatory capital event as defined in the Subordinated Notes Indenture. In addition, the Company has 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 Subordinated Notes Indenture. At any time when the Company has given notice of its election to defer interest payments on the Subordinated Notes, the Company generally may not make payments on or redeem or purchase any shares of the Company’s capital stock or any of its debt securities or guarantees that rank upon our liquidation on a parity with or junior to the Subordinated Notes, subject to certain limited exceptions.

The net proceeds from the sale of the Notes were $1.28 billion, after deducting the underwriting discounts and offering expenses. The Company used the proceeds from the Notes together with the proceeds from the issuance of its 6.50% Series D mandatory convertible preferred stock (“MCPS”), available cash on hand at closing and common stock consideration, to fund the TWG acquisition and pay related fees and expenses. A portion of the aggregate proceeds was used to repay the $350.0 million 2.50% senior notes upon maturity in March 2018.

Term Loan and Bridge Loan Facilities

In March 2018, the commitments under the Company's $1.50 billion senior unsecured bridge loan facility were terminated. In May 2018 the commitments under the Company's senior unsecured term loan facility were terminated. During the three and six months ended June 30, 2018, the Company incurred $0.3 million and $9.6 million, respectively, of expense related to the amortization of costs capitalized in connection with such facilities.

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 TWG acquisition. 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 OCI. The deferred gain will be recognized as a reduction in interest expense related to the 2023 Senior Notes, 2028 Senior Notes and the Subordinated Notes on an effective yield basis, with $25.8 million remaining as of June 30, 2018. Additionally, the Company expensed $8.6 million of the premium paid for the derivatives as a component of interest expense for the six months ended June 30, 2018.

In March 2018, the Company entered into a three-year interest rate swap under which the Company pays interest on $150.0 million of the 2021 Senior Notes at a fixed rate of 2.72% to the counterparty who in return pays the Company a variable rate indexed to the three-month LIBOR rate. The Company determined that the swap qualifies for hedge accounting as an effective cash flow hedge.

13. 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):



	Three Months Ended June 30, 2018
	Foreign currency translation adjustment			Net unrealized gains on securities		Net unrealized gains on derivative transactions		OTTI		Unamortized net (losses) on Pension Plans			Accumulated other comprehensive income
Balance at March 31, 2018	$	(272.3	)	$	372.1	$	21.1	$	14.4	$	(83.6	)	$	51.7

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

Three Months Ended June 30, 2017

Foreign
currency
translation
adjustment

Unrealized
gains on
securities
OTTI Unamortized net (losses) on Pension Plans
Accumulated
other
comprehensive
income
Balance at March 31, 2017 $ (300.3 ) $ 491.7
$ 20.3
$ (63.4 ) $ 148.3
Change in accumulated other comprehensive
  income (loss) before reclassifications
15.7
80.9
(1.5 ) —
95.1
Amounts reclassified from accumulated other
  comprehensive income
—
(7.0 ) —
0.5
(6.5 )
Net current-period other comprehensive income
  (loss)
15.7
73.9
(1.5 ) 0.5
88.6
Balance at June 30, 2017 $ (284.6 ) $ 565.6
$ 18.8
$ (62.9 ) $ 236.9

Three Months Ended June 30, 2016

Foreign
currency
translation
adjustment

Unrealized
gains on
securities
OTTI Unamortized net (losses) on Pension Plans
Accumulated
other
comprehensive
income
Balance at March 31, 2016 $ (258.9 ) $ 525.3
$ 21.1
$ (62.4 ) $ 225.1
Change in accumulated other comprehensive
  (loss) income before reclassifications
(14.5 ) 120.3
0.2
—
106.0
Amounts reclassified from accumulated other
  comprehensive income
—
(4.4 ) —
0.4
(4.0 )
Net current-period other comprehensive (loss)
  income

(14.5 ) 115.9
0.2
0.4
102.0
Balance at June 30, 2016 $ (273.4 ) $ 641.2
$ 21.3
$ (62.0 ) $ 327.1



Change in accumulated other comprehensive (loss) income before reclassifications	(83.1		)	(110.6		)	0.5			(1.4		)	—			(194.6		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			4.7			(0.7		)	—			1.0			5.0
Net current-period other comprehensive income (loss)	(83.1		)	(105.9		)	(0.2		)	(1.4		)	1.0			(189.6		)
Balance at June 30, 2018	$	(355.4	)	$	266.2		$	20.9		$	13.0		$	(82.6	)	$	(137.9	)

	Three Months Ended June 30, 2017
	Foreign currency translation adjustment			Net unrealized gains on securities			Net unrealized gains on derivative transactions			OTTI			Unamortized net (losses) on Pension Plans			Accumulated other comprehensive income
Balance at March 31, 2017	$	(300.3	)	$	491.7		$	—		$	20.3		$	(63.4	)	$	148.3
Change in accumulated other comprehensive (loss) income before reclassifications	15.7			80.9			—			(1.5		)	—			95.1
Amounts reclassified from accumulated other comprehensive (loss) income	—			(7.0		)	—			—			0.5			(6.5		)
Net current-period other comprehensive (loss) income	15.7			73.9			—			(1.5		)	0.5			88.6
Balance at June 30, 2017	$	(284.6	)	$	565.6		$	—		$	18.8		$	(62.9	)	$	236.9

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

Six Months Ended June 30, 2017

Foreign
currency
translation
adjustment

Unrealized
gains on
securities
OTTI Unamortized net (losses) on Pension Plans
Accumulated
other
comprehensive
income
Balance at December 31, 2016 $ (322.1 ) $ 459.3
$ 20.6
$ (63.2 ) $ 94.6
Change in accumulated other comprehensive
  income (loss) before reclassifications
37.5
117.1
(1.8 ) —
152.8
Amounts reclassified from accumulated other
  comprehensive income
—
(10.8 ) —
0.3
(10.5 )
Net current-period other comprehensive income
  (loss)
37.5
106.3
(1.8 ) 0.3
142.3
Balance at June 30, 2017 $ (284.6 ) $ 565.6
$ 18.8
$ (62.9 ) $ 236.9

Six Months Ended June 30, 2016

Foreign
currency
translation
adjustment

Unrealized
gains on
securities
OTTI Unamortized net (losses) on Pension Plans
Accumulated
other
comprehensive
income
Balance at December 31, 2015 $ (270.7 ) $ 495.4
$ 22.4
$ (128.6 ) $ 118.5
Change in accumulated other comprehensive
  (loss) income before reclassifications
(2.7 ) 246.3
(1.4 ) 85.0
327.2
Amounts reclassified from accumulated other
  comprehensive income
—
(100.5 ) 0.3
(18.4 ) (118.6 )
Net current-period other comprehensive (loss) income (2.7 ) 145.8
(1.1 ) 66.6
208.6
Balance at June 30, 2016 $ (273.4 ) $ 641.2
$ 21.3
$ (62.0 ) $ 327.1



	Six Months Ended June 30, 2018
	Foreign currency translation adjustment			Net unrealized gains on securities			Net unrealized gains on derivative transactions			OTTI			Unamortized net (losses) on Pension Plans			Accumulated other comprehensive income
Balance at December 31, 2017	$	(281.5	)	$	581.2		$	—		$	17.9		$	(83.6	)	$	234.0
Change in accumulated other comprehensive (loss) income before reclassifications	(73.9		)	(288.5		)	21.6			(4.9		)	—			(345.7		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			7.4			(0.7		)	—			1.0			7.7
Net current-period other comprehensive income (loss)	(73.9		)	(281.1		)	20.9			(4.9		)	1.0			(338.0		)
Cumulative effect of change in accounting principles (1)	—			(33.9		)	—			—			—			(33.9		)
Balance at June 30, 2018	$	(355.4	)	$	266.2		$	20.9		$	13.0		$	(82.6	)	$	(137.9	)

	Six Months Ended June 30, 2017
	Foreign currency translation adjustment			Net unrealized gains on securities			Net unrealized gains on derivative transactions			OTTI			Unamortized net (losses) on Pension Plans			Accumulated other comprehensive income
Balance at December 31, 2016	$	(322.1	)	$	459.3		$	—		$	20.6		$	(63.2	)	$	94.6
Change in accumulated other comprehensive (loss) income before reclassifications	37.5			117.1			—			(1.8		)	—			152.8
Amounts reclassified from accumulated other comprehensive (loss) income	—			(10.8		)	—			—			0.3			(10.5		)
Net current-period other comprehensive (loss) income	37.5			106.3			—			(1.8		)	0.3			142.3
Balance at June 30, 2017	$	(284.6	)	$	565.6		$	—		$	18.8		$	(62.9	)	$	236.9


(1)	See Note 3 for additional information.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

The following tables summarize the reclassifications out of accumulated other comprehensive income for the three and six months ended June 30, ~~2017~~2018 and ~~2016:~~2017:


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	Amount reclassified from accumulated other comprehensive income						Affected line item in the statement where net income is presented
	Three Months Ended June 30,							Three Months Ended June 30,
	2017			2016				2018			2017
Unrealized gains on securities	$	(10.8	)	$	(6.7	)	Net realized gains on investments, excluding other-than-temporary impairment losses
Net unrealized gains on securities								$	6.0		$	(10.8	)	Net realized gains on investments, excluding other-than-temporary impairment losses
								(1.3		)	3.8			Provision for income taxes
								$	4.7		$	(7.0	)	Net of tax
Unrealized gains on derivative transactions								$	(0.9	)	$	—		Interest Expense
	3.8			2.3			Provision for income taxes	0.2			—			Provision for income taxes
	$	(7.0	)	$	(4.4	)	Net of tax	$	(0.7	)	$	—		Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:
Amortization of net loss	$	0.8		$	0.6		(1)	$	1.2		$	0.8		(1)
	(0.3		)	(0.2		)	Provision for income taxes	(0.2		)	(0.3		)	Provision for income taxes
	$	0.5		$	0.4		Net of tax	$	1.0		$	0.5		Net of tax
Total reclassifications for the period	$	(6.5	)	$	(4.0	)	Net of tax	$	5.0		$	(6.5	)	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	Amount reclassified from accumulated other comprehensive income						Affected line item in the statement where net income is presented
	Six Months Ended June 30,							Six Months Ended June 30,
	2017			2016				2018			2017
Unrealized gains on securities	$	(16.7	)	$	(154.6	)	Net realized gains on investments, excluding other-than-temporary impairment losses
Net unrealized gains on securities								$	9.4		$	(16.7	)	Net realized gains on investments, excluding other-than-temporary impairment losses
	5.9			54.1			Provision for income taxes	(2.0		)	5.9			Provision for income taxes
	(10.8		)	(100.5		)	Net of tax	$	7.4		$	(10.8	)	Net of tax
OTTI	—			0.4			Portion of net loss recognized in other comprehensive income, before taxes
Unrealized gains on derivative transactions								$	(0.9	)	$	—		Interest Expense
	—			(0.1		)	Provision for income taxes	0.2			—			Provision for income taxes
	$	—		$	0.3		Net of tax	$	(0.7	)	$	—		Net of tax
Amortization of pension and postretirement unrecognized net periodic benefit cost:
Settlement gain	$	(0.6	)	$	—		Settlement gain	$	—		$	(0.6	)	Settlement gain
Amortization of net loss	1.1			1.2			(1)	1.2			1.1			(1)
Gain on pension plan curtailment	—			(29.6		)	Gain on pension plan curtailment
	0.5			(28.4		)	Total before tax	1.2			0.5			Total before tax
	(0.2		)	10.0			Provision for income taxes	(0.2		)	(0.2		)	Provision for income taxes
	0.3			(18.4		)	Net of tax	$	1.0		$	0.3		Net of tax
Total reclassifications for the period	$	(10.5	)	$	(118.6	)	Net of tax	$	7.7		$	(10.5	)	Net of tax


(1)	These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 1417 - Retirement and Other Employee Benefits for additional information.

~~11.~~14. Stock Based Compensation

Under the Assurant, Inc. Long-Term Equity Incentive Plan (“ALTEIP”), as amended and restated in May ~~2010,~~2017, the Company is authorized to issue up to ~~5,300,000~~1,500,000 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 (“SARs”), restricted stock (including performance shares), unrestricted stock, restricted stock

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

units (“RSUs”), performance share units (“PSUs”) and dividend equivalents. All share-based grants are awarded under the ALTEIP.

Restricted Stock Units

The following table shows a summary of RSU activity during the three and six months ended June 30, ~~2017~~2018 and ~~2016:~~2017:


	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016			2018			2017			2018			2017
RSU compensation expense	$	6.1		$	5.4		$	10.8		$	8.8		$	8.7		$	6.1		$	13.8		$	10.8
Income tax benefit	(2.1		)	(1.9		)	(3.8		)	(3.1		)	(1.5		)	(2.1		)	(2.3		)	(3.8		)
RSU compensation expense, net of tax	$	4.0		$	3.5		$	7.0		$	5.7		$	7.2		$	4.0		$	11.5		$	7.0
RSUs granted	31,554			62,116			205,199			310,094			32,330			31,554			421,829			205,199
Weighted average grant date fair value per unit	$	99.74		$	78.23		$	99.17		$	78.28		$	89.56		$	99.74		$	90.64		$	99.17
Total fair value of vested RSUs	$	3.5		$	1.7		$	23.9		$	21.3		$	2.6		$	3.5		$	18.8		$	23.9

As of June 30, ~~2017,~~2018, there was ~~$24.6~~$39.4 million of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of ~~1.4~~1.5 years.

Performance Share Units

The following table shows a summary of PSU activity during the three and six months ended June 30, ~~2017~~2018 and ~~2016:~~2017:


	Three Months Ended June 30,						Six Months Ended June 30,					Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017		2016			2018			2017			2018			2017
PSU compensation expense	$	3.2		$	1.4		$	0.1	$	4.2		$	3.1		$	3.2		$	7.3		$	0.1
Income tax benefit	(1.1		)	(0.5		)	—		(1.5		)	(0.4		)	(1.1		)	(1.3		)	—
PSU compensation expense, net of tax	$	2.1		$	0.9		$	0.1	$	2.7		$	2.7		$	2.1		$	6.0		$	0.1
PSUs granted	—			10,182			237,623		258,646			—			—			—			237,623
Weighted average grant date fair value per unit	$	—		$	80.82		$	112.32	$	80.82		$	—		$	—		$	—		$	112.32
Total fair value of vested PSUs												$	25.6		$	29.4		$	25.6		$	29.4

Portions of the compensation expense recorded in prior years were reversed in the three and six months ended June 30, 2017 related to the Company’s level of actual performance as measured against pre-established performance goals and peer group results. As of June 30, ~~2017,~~2018, there was ~~$29.7~~$14.1 million of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of ~~1.2 years.~~0.8 year.

The fair value of PSUs with market conditions was estimated on 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 six months ended June 30, 2017 ~~and 2016~~ were based on the historical stock prices of the Company’s stock and peer group. The expected term for grants issued during the six months ended June 30, 2017 ~~and 2016~~ 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.

In ~~May 2017,~~March 2018, the ~~Company modified its outstanding 2015 PSU awards (except those awarded to executive officers~~Compensation Committee of the ~~Company, as defined in Section 16~~Company’s Board of Directors granted RSUs to the Company’s management committee, including its named executive officers. The RSUs had a three-year annual vesting schedule and reflected half of each executive’s annual target long-term incentive opportunity. The Compensation Committee elected to wait to grant PSUs to the management committee until the closing of the ~~Exchange Act)~~TWG acquisition in order to ~~adjust~~align the ~~revenue growth metric~~performance metrics for ~~a change in program structure for a large service contract client, which impacted~~ the ~~accounting for revenues on a gross instead of a net basis. The 2015 PSU awards were previously modified in 2016, along~~PSUs with the 2014 PSU awards, to exclude the Assurant Employee Benefits and Assurant Health segment revenue from the revenue growth metric as a result of the Company's exit of the health insurance market in 2016 and the sale of Assurant Employee Benefits on March 1, 2016. All other terms of the awards remainedCompany’s expectations regarding its post-closing financial performance.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

~~unchanged. As~~In July 2018, the Compensation Committee granted PSUs to the management committee that reflect the remaining half of each executive’s annual target long-term incentive opportunity plus an additional opportunity to further incentivize and retain executives with respect to the TWG acquisition. Payout for the PSUs is determined by reference to two metrics measured over a ~~result~~thirty-month performance period: (i) total shareholder return relative to the S&P 500 Index (weighted at 60%) and (ii) the realization of ~~these changes,~~net pre-tax synergies in connection with the TWG acquisition (weighted at 40%) provided that a net ~~incremental (expense) benefit recognized~~operating earnings per share (excluding catastrophes) goal is met in 2020. The aggregate grant date fair value of the ~~three~~additional target opportunity provided to all members of the management committee, including the Company’s CEO and ~~six months ended June 30, 2017~~other named executive officers, was ~~$(0.7) and $0.8, respectively.~~$11.1 million. The additional target opportunity granted to the Company’s CEO had a grant date fair value of $4.0 million.

~~12.~~ 15. Equity Transactions

Stock Repurchase

~~During~~There were no share repurchases during the six months ended June 30, ~~2017,~~2018. As of June 30, 2018, $293.4 million remains under the total repurchase authorization. The Company repurchased 2,209,636 shares of the Company’s outstanding common stock at a cost of $216.3 million during the six months ended June 30, 2017, exclusive of ~~commissions, leaving $466.6 remaining under the total repurchase authorization as of June 30, 2017.~~commissions.

The timing and the amount of future repurchases will depend on market conditions, the Company's financial condition, results of operations, liquidity and other factors.

Issuance of Mandatory Convertible Preferred Stock

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 and liquidation preference of $100.00 per share, which included the underwriters' exercise in full of their option to purchase 375,000 additional shares of MCPS to cover over-allotments. The net proceeds from the sale of the MCPS was $276.4 million after deducting the underwriting discounts and offering expenses. Refer to Note 12 for further details on the use of proceeds from this offering.

Each outstanding share of MCPS will convert automatically on March 15, 2021 (the "mandatory conversion date") into between 0.9354 and 1.1225 shares of common stock (respectively, the “minimum conversion rate” and “maximum conversion rate”), subject to customary anti-dilution adjustments. The number of shares of our common stock issuable on conversion of the MCPS will be determined based on the average volume weighted average price per share of our common stock over the 20 consecutive trading day period preceding the mandatory conversion date. At any time prior to March 2021, holders may elect to convert each share of the 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.

Dividends on our MCPS will be 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 first dividend of $1.6792 per share of the MCPS, or $4.8 million in total, was paid in cash on June 15, 2018. Each subsequent dividend is expected to be $1.6250 per share of the MCPS. On July 12, 2018, the board declared a dividend of $1.6250 per share payable on September 17, 2018 to preferred stockholders of record as of the close of business on September 1, 2018. 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 in March, June, September and December of each year, 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 by the Company 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.

~~13.~~16. Earnings Per Common Share

The following table presents net income, the weighted average common shares used in calculating basic earnings per common share (“EPS”) and those used in calculating diluted EPS for each period presented below.

Three Months Ended
June 30, Six Months Ended
June 30,
2017 2016 2017 2016
Numerator
Net income $ 120.2
$ 169.3
$ 264.0
$ 389.7
Deduct dividends paid (30.3 ) (32.5 ) (60.0 ) (65.0 )
Undistributed earnings $ 89.9
$ 136.8
$ 204.0
$ 324.7
Denominator
Weighted average shares outstanding used in basic earnings per share 55,230,367
62,244,778
55,713,172
63,665,856
Incremental common shares from:
PSUs 239,400
431,575
321,849
561,214
Employee Stock Purchase Program 40,131
46,939
40,131
46,939
Weighted average shares used in diluted earnings per share calculations 55,509,898
62,723,292
56,075,152
64,274,009
Earnings per common share - Basic
Distributed earnings $ 0.55
$ 0.52
$ 1.08
$ 1.02
Undistributed earnings 1.63
2.20
3.66
5.10
Net income $ 2.18
$ 2.72
$ 4.74
$ 6.12
Earnings per common share - Diluted
Distributed earnings $ 0.54
$ 0.52
$ 1.07
$ 1.01
Undistributed earnings 1.62
2.18
3.64
5.05
Net income $ 2.16
$ 2.70
$ 4.71
$ 6.06

~~Average~~Diluted EPS reflects the incremental common shares from: (1) shares issuable upon vesting of PSUs ~~totaling 97,574~~ and 2,909 for the three months ended June 30, 2017 and 2016, respectively, and 74,410 and 2,944 for the six months ended June 30, 2017 and 2016, respectively, were outstanding but were anti-dilutive and thus not included in the computation of diluted EPS underESPP using the treasury stock method; and (2) shares issuable upon conversion of the MCPS using the if-converted method. Refer to Note 14 - Stock Based Compensation

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

~~14.~~and Note 15 - Equity Transactions for further information regarding potential common share issuances. The outstanding RSUs have non-forfeitable rights to dividend equivalents and are therefore included in calculating basic and diluted EPS under the two-class method.



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Numerator
Net income	$	67.0		$	120.2		$	173.0		$	264.0
Less: Preferred stock dividends	(4.8		)	—			(4.8		)	—
Net income attributable to common stockholders	62.2			120.2			168.2			264.0
Less: Common stock dividends paid	(30.9		)	(30.3		)	(60.6		)	(60.0		)
Undistributed earnings	$	31.3		$	89.9		$	107.6		$	204.0
Denominator
Weighted average shares outstanding used in basic earnings per share	57,060,313			55,230,367			55,125,584			55,713,172
Incremental common shares from:
PSUs	163,596			239,400			217,455			321,849
ESPP	40,499			40,131			40,499			40,131
MCPS	—			—			1,889,890			—
Weighted average shares used in diluted earnings per share calculations	57,264,408			55,509,898			57,273,428			56,075,152
Earnings per common share - Basic
Distributed earnings	$	0.54		$	0.55		$	1.10		$	1.08
Undistributed earnings	0.55			1.63			1.95			3.66
Net income attributable to common stockholders	$	1.09		$	2.18		$	3.05		$	4.74
Earnings per common share - Diluted
Distributed earnings	$	0.54		$	0.54		$	1.06		$	1.07
Undistributed earnings	0.55			1.62			1.96			3.64
Net income attributable to common stockholders	$	1.09		$	2.16		$	3.02		$	4.71

Average PSUs totaling 4,171 and 97,574 for the three months ended June 30, 2018 and 2017, respectively, and 4,171 and 74,410 for the six months ended June 30, 2018 and 2017, respectively, were anti-dilutive and thus not included in the computation of diluted EPS under the treasury stock method. Average MCPS totaling 3,056,700 for the three months ended June 30, 2018 were anti-dilutive and thus not included in the computation of diluted EPS under the if-converted method.

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

17. Retirement and Other Employee Benefits

The components of net periodic benefit ~~(gain)~~ cost for the Company’s qualified pension benefits plan, nonqualified pension benefits plan and retirement health benefits plan for the three and six months ended June 30, ~~2017~~2018 and ~~2016~~2017 were as follows:


	Qualified Pension Benefits												Unfunded Nonqualified Pension Benefits						Retirement Health Benefits						Qualified Pension Benefits									Unfunded Nonqualified 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,						For the Three Months Ended June 30,									For the Three Months Ended June 30,					For the Three Months Ended June 30,
	2017 Plan 1			2017 Plan 2			2016 Plan 1			2016 Plan 2			2017			2016			2017			2016			2018			2017 Plan 1			2017 Plan 2			2018		2017			2018			2017
Service cost	$	—		$	—		$	—		$	—		$	—		$	0.1		$	—		$	—
Interest cost	2.9			3.1			3.4			3.5			0.7			0.9			0.8			0.8			5.8			2.9			3.1			0.7		0.7			0.9			0.8
Expected return on plan assets	(6.1		)	(6.8		)	(7.8		)	(5.9		)	—			—			(0.7		)	(0.7		)	(9.1		)	(6.1		)	(6.8		)	—		—			(0.6		)	(0.7		)
Amortization of net loss	—			0.3			—			0.3			0.3			0.3			—			—			0.2			—			0.3			0.3		0.3			—			—
Net periodic benefit (gain) cost	$	(3.2	)	$	(3.4	)	$	(4.4	)	$	(2.1	)	$	1.0		$	1.3		$	0.1		$	0.1
Net periodic benefit cost																									$	(3.1	)	$	(3.2	)	$	(3.4	)	$	1.0	$	1.0		$	0.3		$	0.1

	Qualified Pension Benefits												Unfunded Nonqualified Pension Benefits						Retirement Health Benefits						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,						For the Six Months Ended June 30,									For the Six Months Ended June 30,					For the Six Months Ended June 30,
	2017 Plan 1			2017 Plan 2			2016 Plan 1			2016 Plan 2			2017			2016			2017			2016			2018			2017 Plan 1			2017 Plan 2			2018		2017			2018			2017
Service cost	$	—		$	—		$	—		$	—		$	—		$	0.2		$	—		$	—
Interest cost	5.8			6.2			6.8			7.0			1.5			1.8			1.7			1.7			$	11.6		$	5.8		$	6.2		$	1.4	$	1.5		$	1.7		$	1.7
Expected return on plan assets	(12.2		)	(13.6		)	(15.6		)	(11.8		)	—			—			(1.5		)	(1.5		)	(18.2		)	(12.2		)	(13.6		)	—		—			(1.1		)	(1.5		)
Amortization of net loss	—			0.6			—			0.6			0.6			0.6			—			—			0.4			—			0.6			0.8		0.6			—			—
Curtailment/settlement (gain)	—			—			(23.1		)	—			(0.7		)	(2.3		)	—			(4.2		)
Net periodic benefit (gain) cost	$	(6.4	)	$	(6.8	)	$	(31.9	)	$	(4.2	)	$	1.4		$	0.3		$	0.2		$	(4.0	)
Curtailment/settlement gain																									—			—			—			—		(0.7		)	—			—
Net periodic benefit cost																									$	(6.2	)	$	(6.4	)	$	(6.8	)	$	2.2	$	1.4		$	0.6		$	0.2

Assurant's qualified and non-qualified pension benefit plans were frozen on March 1, 2016. ~~The~~Effective December 31, 2017 Assurant Pension ~~Plan's~~Plan No. 1 ("Plan No. 1") and Assurant Pension Plan No. 2 ("Plan No. 2") were merged into the Assurant Pension Plan (the "Plan"). The expected long-term return on plan assets for 2018 is 4.75%, reflecting a decrease from 6.75% in 2017 due to the reallocation of plan assets through 2018. The Plan's funded status increased to ~~$85.5~~$83.7 million at June 30, ~~2017~~2018 from ~~$77.0~~$81.3 million (based on the fair value of the assets compared to the accumulated benefit obligation) at December 31, ~~2016.~~2017. This equates to a 112% and 111% funded status at June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively. ~~During~~No cash was contributed to the Plan during the first six months of ~~2017, no cash was contributed to the Plan.~~2018. Due to the Plan's current funded status, no additional cash is expected to be contributed to the Plan over the remainder of ~~2017.~~2018.

~~15.~~18. 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 ~~$18.3~~$16.9 million and ~~$17.2~~$18.1 million of letters of credit outstanding as of June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively.

Legal and Regulatory Matters

In January 2015, at the request of the Indiana Department of Insurance, the National Association of Insurance Commissioners (the "NAIC") authorized a multistate targeted market conduct examination regarding the Company's lender placed insurance products. Various underwriting companies, including American Security Insurance Company, were subject to the examination. In December 2016, the Company reached a Regulatory Settlement Agreement (the "RSA") with the participating regulators to resolve the issues raised in the market conduct examination and a separate agreement with the Minnesota Department of Commerce to settle its lender-placed insurance market conduct examination (together with the RSA, the “Settlement Agreements”). The ~~terms of the Settlement Agreements took effect in the first quarter of 2017. They resolve~~

~~Assurant, Inc.~~

~~Notes to Consolidated Financial Statements (unaudited)~~

~~Three and Six Months Ended June 30, 2017 and 2016~~

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

outstanding regulatory matters related to lender-placed insurance within the scope of the examinations and align lender-placed business practices with procedures already implemented across much of the Company’s lender-placed business. In April 2017, the Company paid $85.0 to the participating jurisdictions for examination, compliance and monitoring costs. In accordance with the RSA, the Company is required to re-file its lender-placed insurance rates at least once every 4 years, and modify certain lender-placed business practices to which other significant providers in the lender-placed market will also be subject. The Company expects the state insurance regulatory agencies also to impose similar requirements and restrictions on other existing writers of lender-placed insurance and future entrants.

~~In addition, as previously disclosed, the~~ Company is involved in a variety of litigation 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 seek premium refunds and other relief. The Company continues to defend itself vigorously in these class

Assurant, Inc.

Notes to Consolidated Financial Statements (unaudited)

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

actions. We have participated and may participate in settlements on terms that we consider reasonable given the strength of our defenses and other factors.

The Company has established an accrued liability for various legal and regulatory proceedings. However, the possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and uncertain. Consequently, no estimate can be made of any possible loss or range of loss in excess of the accrual. Although the Company cannot predict the outcome of any pending legal or regulatory action, or the potential losses, fines, penalties or equitable relief, if any, that may result, it is possible that such outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, on the basis of currently available information, management does not believe that the pending matters are likely to have a material adverse effect, individually or in the aggregate, on the Company’s financial condition.

Guaranty Fund Assessments

Under state guaranty association laws, certain insurance companies can be assessed (up to prescribed limits) for certain obligations to the policyholders and claimants of impaired or insolvent insurance companies that write the same line or similar lines of business. In 2009, the Pennsylvania Insurance Commissioner (the “Commissioner”) placed long-term care insurer Penn Treaty Network America Insurance Company and one of its subsidiaries (collectively, “Penn Treaty”) in rehabilitation, an intermediate action before insolvency, and subsequently petitioned a state court to convert the rehabilitation into a liquidation. In 2012, the state court denied the Commissioner’s petition for liquidation. The Pennsylvania Supreme Court affirmed that ruling in July 2015. The state court’s 2012 order directed the Commissioner to develop a plan of rehabilitation. The Commissioner filed an initial rehabilitation plan in April 2013, and filed amended plans in August 2014 and October 2014. The state court began a hearing in July 2015 ~~which is ongoing,~~ to consider the Commissioner’s most recent proposed rehabilitation plan, which contemplates a partial liquidation of Penn Treaty. Given developments in 2016, and the apparent inevitable liquidation of Penn Treaty, the Company accrued $12.5 for its estimated share of guaranty association assessments in the fourth quarter of 2016. In March 2017, the order of liquidation was granted. During the ~~first half of~~six months ended June 30, 2018 and 2017, the Company ~~paid $2.3 to state guaranty funds for Penn Treaty. During the same period, the Company incurred~~accrued an additional $1.4 million and $0.8 million of expense, respectively, related to Penn Treaty due to a revised estimated total loss liability and has a net liability of ~~$11.0~~$6.3 million as of June 30, ~~2017~~2018 for remaining obligations related to the ~~related~~ insolvency.

19. Income Taxes

In connection with the initial analysis of the impact of the U.S. Tax Cuts and Jobs Act ("TCJA"), the Company recorded net discrete provision tax reform adjustments of $177.0 million and $(6.0) million for Assurant (pre-closing) and TWG, respectively, as of December 31, 2017. As of June 30, 2018, the Company has no revisions to the initial estimates and does not expect to finalize the analysis until the 2017 U.S. corporate income tax return is filed later in 2018.

During the three and six months ended June 30, 2018, the Company recorded net tax benefits of $3.9 million in the Global Lifestyle segment, as a result of changes in estimates related to international taxes, and $5.7 million in the Corporate segment, as a result of the structuring of the combined Assurant and TWG legal entities. The benefits are reflected in the provision for income taxes line item in the consolidated statements of operations.

20. Dispositions

On August 1, 2018, the Company sold its mortgage solutions business to Xome, an indirectly wholly owned subsidiary of WMIH Corp., for cash consideration of $35.0 million and potential future payments based on revenue retention targets and certain types of new business. The sale includes Assurant Services, LLC and its wholly owned subsidiaries Assurant Field Services, Assurant Valuations Originations, Assurant Valuations Default and Assurant Title. The Company has entered into a transition services agreement to provide ongoing services for one year for fees approximating the cost of such services.

As of June 30, 2018, the Company recorded a pre-tax impairment loss of $43.5 million, when comparing the net assets of the mortgage solutions businesses held for sale to the estimated fair value less selling costs. The loss is classified in Underwriting, general and administrative expenses in the consolidated statements of operations.

The corresponding assets and liabilities of mortgage solutions after the impairment have been reclassified as net assets held for sale within Other assets and Accounts payable and other liabilities, respectively. Such amounts are not material to the Company's consolidated balance sheets.

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

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

~~This Management’s~~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”~~&A") ~~addresses~~and the financial condition of Assurant, Inc. (which we refer to as “Assurant” or the "Company”) as of June 30, 2017, compared with December 31, 2016, and our results of operations for the three and six months ended June 30, 2017 and 2016. This discussion should be read in conjunction with our MD&A and annual audited ~~Consolidated Financial Statements~~consolidated financial statements for the year ended December 31, ~~2016~~2017 included in our Annual Report on Form 10-K for the year ended December 31, ~~2016~~2017 (the ~~"2016~~"2017 Annual Report") filed with the U.S. Securities and Exchange Commission (the “SEC”) and the unaudited ~~Consolidated Financial Statements~~consolidated financial statements for the three and six months ended June 30, ~~2017~~2018 and ~~related~~accompanying notes included elsewhere in this Quarterly Report on Form 10-Q (this "Report"). ~~The 2016 Annual Report, this Report, and other documents related to the Company are available free of charge through the SEC website at~~ ~~www.sec.gov~~ ~~and through our website at~~ ~~www.assurant.com.~~

Some statements in this MD&A and elsewhere in this Report, particularly those anticipating 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,” or 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 the future plans, estimates or expectations contemplated by us will be achieved. Our actual results might differ materially from those projected in the forward-looking statements. The Company undertakes 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 effective integration of The Warranty Group acquisition;


(ii)	the loss of significant client relationships or business, distribution sources and contracts;


(iii)	the impact of general economic, financial market and political conditions;


(iv)	the adequacy of reserves established for future claims;


(v)	the impact of catastrophic losses, including human-made catastrophic losses;


(vi)	a decline in our credit or financial strength ratings;


(vii)	risks related to our international operations, including fluctuations in exchange rates;


(viii)	an impairment of the Company’s goodwill or other intangible assets resulting from a sustained significant decline in the Company’s stock price, a decline in actual or expected future cash flows or income, a significant adverse change in the business climate or slower growth rate, among other circumstances;


(ix)	a failure to effectively maintain and modernize our information technology systems;


(x)	the Company’s vulnerability to system security threats, data protection breaches, cyber-attacks and data breaches compromising client information and privacy;


(xi)	significant competitive pressures in our businesses or changes in customer preferences;


(xii)	the failure to find and integrate suitable acquisitions and new ventures;


(xiii)	a decline in the sales of our products and services resulting from an inability to develop and maintain distribution sources or attract and retain sales representatives;


(xiv)	a decrease in the value of our investment portfolio;


(xv)	the impact of recently enacted tax reform legislation in the U.S.;


(xvi)	the impact from litigation, other contingent liabilities and loss contingencies, regulatory investigations, reviews and markets studies to which we are or may become subject;


(xvii)	the extensive laws and regulations to which we are and may become subject, including relating to data privacy (such as the new privacy acts in the European Union and in California), could increase our costs, restrict the conduct of our business and limit our growth;


(xviii)	the failure to successfully manage outsourcing activities, such as call center services;


(xix)	a decline in the value of mobile devices in our inventory or those that are subject to guaranteed buyback provisions;


(xx)	the unavailability or inadequacy of reinsurance coverage;


(xxi)	the insolvency of third parties to whom we have sold or may sell businesses through reinsurance or modified co-insurance;


(xxii)	the credit risk of some of our agents that we are exposed to due to the structure of our commission program;


(xxiii)	the inability of our subsidiaries to pay sufficient dividends to the holding company; and


(xxiv)	the failure to attract and retain key personnel and to provide for succession of senior management and key executives.

For ~~a discussion of the risk~~additional information on factors that could affect our actual results, please refer to ~~“Item 7-MD&A-Critical~~"Critical Factors Affecting ~~Results” in this Report~~Results" below and in Item 7 of our ~~2016~~2017 Annual Report and ~~“Item~~"Item 1A-Risk ~~Factors”~~Factors" in our ~~2016~~2017 Annual Report.

General

As of June 30, ~~2017,~~2018, the Company has four reportable segments, which are defined based on the nature of the products and services offered:

•Global Preneed: provides pre-funded funeral insurance.

•Total Corporate &and Other: Corporate &and Other includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments, interest income earned from short-term investments held and income (expenses) primarily related to the Company's frozen benefit plans. Corporate &and Other also includes the amortization of deferred ~~gains and~~ gains associated with the sales of Fortis Financial Group, Long-Term Care and the Assurant Employee Benefits businesses through reinsurance agreements, expenses related to the acquisition of The Warranty Group (see below) and other unusual ~~and~~or infrequent items. Additionally, the Total Corporate &and Other segment includes amounts related to the runoff of the Assurant Health business. As Assurant Health was a reportable segment in prior years, these amounts are disclosed ~~separately in the tables~~ for comparability.

In addition, Assurant Employee Benefits was a separate segment in 2016 and primarily includes the results of operations for the periods prior to its sale on March 1, 2016. See Note 5 for more information.

The following discussion covers the three and six months ended June 30, 2018 (“Second Quarter 2018" and "Six Months 2018") and the three and six months ended June 30, 2017 (“Second Quarter 2017” and "Six Months ~~2017," respectively)~~2017").

Executive Summary

On May 31, 2018, the Company closed its acquisition of TWG Holdings Limited (“TWG Holdings,” and together with its subsidiaries, “TWG”), a Bermuda limited company and a global provider of protection plans and related programs. Our results of operations for the ~~three~~Second Quarter and six months ~~ended~~2018 included the results of operations from TWG for the period June 1, 2018 through June 30, ~~2016 (“Second Quarter 2016” and "Six Months 2016," respectively).~~

~~Executive Summary~~

The Company is undergoing a multi-year transformation. As part of its business portfolio realignment to focus on specialty housing and lifestyle protection products and services, the Company substantially exited the health insurance market and sold its employee benefits business (Assurant Employee Benefits or "AEB") to Sun Life Assurance Company of Canada, a subsidiary of Sun Life Financial Inc. ("Sun Life").2018. For more information onregarding the ~~sale,~~acquisition, see Note 54 to the Consolidated Financial Statements, included elsewhere in this Report.

On August 1, 2018, the Company sold its mortgage solutions business to Xome, an indirectly wholly owned subsidiary of WMIH Corp., for cash consideration of approximately $35.0 million and potential future payments based on performance. The sale includes all of Assurant’s mortgage solutions businesses consisting of title, valuations and field services. The disposition allows Global Housing to better align its portfolio of business, increase resources allocated towards these markets and strengthen its businesses. For more information on the sale, see Note 20 to the Consolidated ~~net income decreased $49.1, or 29%, to $120.2~~Financial Statements, included elsewhere in this Report. Results for this business are included in Global Housing's results for Second Quarter ~~2017,~~2018. The expected fair value of the proceeds less selling costs compared to net assets resulted in a net loss which was included in the consolidated statements of operations as an impairment on the held for sale net assets for Second Quarter 2018. In addition, the associated assets and liabilities were reclassified as held for sale as of June 30, 2018.

For Second Quarter 2018, consolidated net income attributable to common stockholders decreased $58.0 million, or 48%, to $62.2 million compared with net income of ~~$169.3~~$120.2 million for Second Quarter ~~2016. For Six Months 2017, consolidated~~2017. The decrease reflects a $34.4 million after-tax loss on the sale of our mortgage solutions business and $32.5 million of after-tax net income decreased $125.7, or 32%, to $264.0, compared with net income of $389.7 for Six Months 2016. The decline in Second Quarter 2017 compared to Second Quarter 2016 was primarily due to lower amortization of deferred gains in 2017charges related to the ~~sale of AEB, partially offset by improvements in Health.~~TWG acquisition.

Global Housing net income increased $16.4 million, or 29%, to $72.6 million for Second Quarter 2018 from $56.2 million for Second Quarter 2017, primarily due to the impact of a lower effective tax rate following the enactment of the U.S. Tax Cuts and Jobs Act ("TCJA"). Absent the lower effective tax rate, net income increased primarily due to favorable non-catastrophe loss experience in lender-placed insurance and growth in multifamily housing, partially offset by the ongoing lender-placed normalization.

Net earned premiums and fees decreased ~~$0.7,~~$7.7 million, or 1%, to ~~$56.2~~$542.5 million for Second Quarter 2018 from $550.2 million for Second Quarter 2017, from $56.9 for Second Quarter 2016. Second Quarter 2017 reflects $16.0 (after-tax) of lower reportable catastrophes compared to Second Quarter 2016. Excluding catastrophe losses, Second Quarter 2017 results declined $16.7, or 23%, primarily due to lower volumes from our real estate owned ("REO") insurance products, the ongoing declines in placement rates from our lender placed insurance business and reduced client demand for originations and field services from our mortgage solutions business. These decreases were partially offset by growth in our multifamily housing, international and other housing products.

In June 2018, we finalized our $1.30 billion 2018 property catastrophe reinsurance program which includes coverage in the U.S., Caribbean and Latin America, down from $1.36 billion of coverage for the 2017 program mainly due to declining catastrophe exposure within the Company's lender-placed insurance business. Coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best. See “Catastrophe Reinsurance Program” below.

For 2018, we expect Global Housing's net income, excluding reportable catastrophes, to increase reflecting a lower effective tax rate of approximately 20% to 21%, with a portion of the tax savings to be reinvested for future growth, primarily in the second half of 2018. Net income is expected to decrease before taking into account the lower effective tax rate. Further declines in our lender-placed insurance and mortgage solutions businesses (until its sale) are expected to drive the decrease, partially offset by continued profitable growth in our multifamily housing business. We expect additional savings from expense management efforts to be realized towards the end of 2018 and into 2019. Revenue is expected to contract from 2017 levels due to declines in our lender-placed insurance business and ~~higher non-catastrophe losses, including losses that did not reach~~mortgage solutions business until its sale. Excluding mortgage solutions for the ~~Company's reportable catastrophe threshold.~~full year, revenue is expected to increase due to growth in multifamily housing, international and other housing products.

Global Lifestyle net income increased $27.9 million, or 69%, to $68.1 million for Second Quarter 2018 from $40.2 million for Second Quarter 2017, benefitting from the impact of a lower effective tax rate following the enactment of the TCJA. Excluding the impact of a lower effective tax rate, segment net income increased mainly due to strong growth from mobile programs launched in 2017, partially offset by continued declines in credit insurance, now a component of a business we refer to as Financial Services. A $3.9 million income tax benefit in our Financial Services business and $2.0 million of one-time after-tax benefits in our Global Automotive business also impacted the quarter. TWG contributed $9.4 million of income for the month of June 2018.

Net earned premiums and fees ~~decreased $10.9,~~increased $266.2 million, or 2%32%, to ~~$550.2~~$1.10 billion for Second Quarter 2018 from $836.0 million for Second Quarter 2017, ~~from $561.1 for Second Quarter 2016,~~ primarily due to expected lower placement rates in our lender-placed insurance business and reduced demand for originations and field services in mortgage solutions. Growth in multi-family housing and from new lender-placed clients partially offset the ~~decline.~~

~~In June 2017, we finalized our catastrophe reinsurance program for coverage commencing June 1, 2017 and continuing through May 31, 2018. The total coverage is for $1,360.0 (down from $1,400.0 in~~acquisition of TWG. Excluding the ~~prior period~~impact of TWG, the increase was primarily due to ~~declining exposure).~~

~~For 2017, we expect Global Housing's net earned premiums~~recently launched and net income, excluding reportable catastrophe losses, to decrease from 2016 as a result of additional declines in our lender-placed insurance business, reflecting lower placement rates anticipated for the second half of 2017,existing mobile programs, as well as ~~reduced contributions from mortgage solutions. We expect ongoing expense management initiatives within Global Housing and~~ growth in ~~multi-family housing to partially mitigate declines.~~

our Global ~~Lifestyle net income decreased $9.9, or 20%, to $40.2 for Second Quarter 2017 from $50.1 for Second Quarter 2016, primarily due to an $18.0 one-time tax benefit in~~Automotive business, mainly the Second Quarter 2016. Excluding the tax benefit, Second Quarter 2017 net income increased $8.1, or 25%, primarily due to improved profitability in Connected Living, reflecting lower expenses and a one-time client adjustment in extended service contracts, as well as modest growth in mobile. Less favorable loss experience in vehicle protectionCompany's third-party administrator distribution channel, partially offset ~~the increase.~~

Net earned premiums and fees decreased $78.9, or 9%, to $836.0 for Second Quarter 2017 from $914.9 for Second Quarter 2016, due to a change in program structure in fourth quarter 2016 for a large service contract client in Connected Living. Excluding this $138.0 reduction, Second Quarter 2017 revenue increased $59.1, or 8%, across all major lines of business, primarily inby lower mobile ~~and extended service contracts. Foreign exchange volatility partially offset the increase.~~trade-in average selling prices.

For ~~2017,~~2018, we expect Global Lifestyle's net income to increase ~~compared~~after taking into account contributions from the TWG acquisition including operating synergies and a lower effective tax rate of approximately 22% to ~~2016 as a result~~24% and organic growth. A portion of ~~improved performance~~the tax savings is to be reinvested for future growth, primarily in ~~Connected Living,~~the second half of 2018. The tax rate may fluctuate based on geographic mix of income. Net income is expected to increase modestly before taking into account the lower effective tax rate and contributions from TWG. We expect profitable growth to be driven primarily by ~~growth in~~newly launched mobile ~~as well as higher contributions from vehicle protection services~~programs, Global Automotive expansion and ~~from~~ongoing expense ~~efficiencies. We expect~~management efforts, partially offset by ongoing declines in ~~legacy credit insurance and retail clients to continue. We expect revenue to decrease, largely~~Financial Services due to ~~a change~~discontinued client partnerships in ~~program structure for a large service contract client. Under~~ the ~~new structure, the overall economics~~second half of the program are maintained with no impact to profitability, however, net earned premiums will be lower by approximately $500.0 compared to 2016 with a commensurate reduction in expenses. Excluding this item, we expect net earned premiums and fee income2018. Revenue is expected to increase from growth in Connected Living and ~~vehicle protection services~~Global Automotive, globally. ~~Foreign exchange volatility and variability of the mobile market are expected to impact results.~~

Global Preneed net income increased ~~$1.5,~~to $14.7 million, or ~~13%~~15%, toin Second Quarter 2018 from $12.8 ~~for~~million in Second Quarter 2017 ~~from $11.3 for Second Quarter 2016,~~ primarily due to ~~higher fee and investment income.~~the impact of a lower effective tax rate following the passage of the TCJA.

Net earned premiums and fees increased ~~$3.0,~~$0.6 million, or 7%1%, to $46.9 million for Second Quarter 2018 from $46.3 million for Second Quarter 2017, driven by growth from ~~$43.3 for~~our domestic preneed business, including prior period sales of the final need product, that was mostly offset by lower production in Canada compared to the favorable Second Quarter ~~2016, driven mainly by increased volume in Canada.~~2017.

For ~~2017,~~2018, we expect Global Preneed's ~~full year fees and other income~~revenue and net income to increase ~~compared to 2016~~modestly due to ~~sales~~our alignment with market leaders, before taking into account recently enacted tax reform. Net income is expected to benefit from a lower effective tax rate of approximately 22%, with a portion of the tax savings to be reinvested for future growth, ~~across North America and operational efficiencies.~~

primarily in the second half of 2018.

Critical Factors Affecting Results ~~and Liquidity~~

Our results depend on, among other things, the appropriateness of our product pricing, underwriting and the accuracy of our methodology for the establishment of reserves for future policyholder benefits and claims, returns on and values of invested assets, our ability to manage our expenses and achieve expense savings and ~~catastrophe losses.~~the severity and frequency of catastrophes. Our results will also depend on our ability to profitably grow our fee-based, capital-light businesses, including Connected Living ~~multi-family~~and multifamily housing, ~~mortgage solutions,~~ as well as ~~vehicle protection services,~~Global Automotive, and manage the pace of declines in placement rates in our lender-placed insurance business. In addition, our results will be impacted by our ability to integrate the TWG acquisition. Factors affecting these items, including conditions in financial markets, the global economy and the markets in which we operate, and fluctuations in exchange 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, see “Item 1A—Risk Factors” and “Item 7—MD&A—Critical Factors Affecting Results” in our ~~2016~~2017 Annual Report.

Management believes the Company will have sufficient liquidity to satisfy its 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, ~~2017,~~2018, net cash provided by operating activities ~~including the effect of exchange rate changes~~was $172.3 million; net cash used in investing activities totaled $1.51 billion and ~~the reclassification of assets held for sale, totaled $4.8;~~ net cash provided by ~~investing activities totaled $3.7 and net cash used in~~ financing activities totaled ~~$192.3.~~$1.64 billion. We had ~~$848.2~~$1.25 billion in cash and cash equivalents as of June 30, ~~2017.~~2018. Please see “—Liquidity and Capital Resources,” below for further details.

Critical Accounting Policies and Estimates

Our ~~2016~~2017 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 ~~2016~~2017 Annual Report were consistently applied to the unaudited interim Consolidated Financial Statements for Second Quarter ~~2017.~~2018.

Recent Accounting Pronouncements

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

Management generally identifies highly inflationary markets as those markets whose cumulative inflation rates over a three-year period exceeds 100%, in addition to considering other qualitative and quantitative factors. Beginning July 1, 2018, we anticipate the functional currency of our Argentina subsidiary within our Global Lifestyle business will change from the local currency to U.S. Dollars as the subsidiary will be operating in a highly inflationary market. As a result, its non-U.S. Dollar denominated monetary assets and liabilities would be subject to re-measurement and recorded in Underwriting, general and administrative expenses, within the Consolidated Statements of Operations with reported results beginning after July 1, 2018. Although we continue to evaluate the impact, we do not anticipate the ongoing re-measurement to have a material impact on our results of operations or financial condition when considering the foreign exchange volatility applied to our Argentina net assets.

Results of Operations

Assurant Consolidated

Overview

The table below presents information regarding our consolidated results of operations:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,				For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2017		2016		2017		2016		2018			2017		2018			2017
Revenues:
Net earned premiums	$	1,115.3	$	1,202.3	$	2,165.6	$	2,617.5	$	1,338.3		$	1,115.3	$	2,463.2		$	2,165.6
Fees and other income	326.9		328.3		667.1		686.0		354.2			326.9		718.7			667.1
Net investment income	121.7		119.8		242.3		255.5		135.6			121.7		265.8			242.3
Net realized gains on investments	13.2		21.6		16.6		183.3
Amortization of deferred gains and gains on disposal of businesses	23.4		125.8		60.4		173.4
Gain on pension plan curtailment	—		—		—		29.6
Net realized (losses) gains on investments									(11.4		)	13.2		(10.9		)	16.6
Amortization of deferred gains on disposal of businesses									15.0			23.4		33.5			60.4
Total revenues	1,600.5		1,797.8		3,152.0		3,945.3		1,831.7			1,600.5		3,470.3			3,152.0
Benefits, losses and expenses:
Policyholder benefits	416.4		400.8		774.4		944.6		490.6			416.4		905.2			774.4
Selling, underwriting, general and administrative expenses	993.0		1,146.3		1,958.8		2,397.9
Amortization of deferred acquisition costs and value of business acquired									463.2			346.7		809.6			661.2
Underwriting, general and administrative expenses									773.6			646.3		1,493.2			1,297.6
Interest expense	12.4		15.2		25.0		29.7		26.0			12.4		47.5			25.0
Total benefits, losses and expenses	1,421.8		1,562.3		2,758.2		3,372.2		1,753.4			1,421.8		3,255.5			2,758.2
Income before provision for income taxes	178.7		235.5		393.8		573.1		78.3			178.7		214.8			393.8
Provision for income taxes	58.5		66.2		129.8		183.4		11.3			58.5		41.8			129.8
Net income	$	120.2	$	169.3	$	264.0	$	389.7	67.0			120.2		173.0			264.0
Less: Preferred stock dividends									(4.8		)	—		(4.8		)	—
Net income attributable to common stockholders									$	62.2		$	120.2	$	168.2		$	264.0

For the Three Months Ended June 30, ~~2017~~2018 Compared to the Three Months Ended June 30, ~~2016~~2017

Net Income Attributable to Common Stockholders

~~Net~~Consolidated net income attributable to common stockholders decreased ~~$49.1,~~$58.0 million, or ~~29%~~48%, to ~~$120.2~~$62.2 million for Second Quarter ~~2017,~~2018, compared ~~with $169.3 of net income~~to $120.2 million for Second Quarter ~~2016,~~2017. The decrease in net income was primarily ~~resulting from lower amortization~~driven by a $34.4 million after-tax net loss on the sale of ~~deferred gains, mainly~~our mortgage solutions business and $32.5 million of after-tax net charges related to the ~~sale of AEB (further described~~TWG acquisition. The decrease was also attributed to a $17.6 million unfavorable change in ~~Note 5 to the Consolidated Financial Statements), which declined by $66.6~~net realized gains (losses) on ~~an after-tax basis. These decreases were~~investments. The decrease was partially offset by ~~an $8.9 (after-tax) improvement in results associated with~~the overall impact of a lower effective tax rate due to the TCJA and the higher net income from our ~~Health run-off operations.~~Global Lifestyle business, which included earnings contributions from the acquisition of TWG.

For the Six Months Ended June 30, ~~2017~~2018 Compared to the Six Months Ended June 30, ~~2016~~2017

Net Income Attributable to Common Stockholders

~~Net~~Consolidated net income attributable to common stockholders decreased ~~$125.7,~~$95.8 million, or ~~32%~~36%, to ~~$264.0~~$168.2 million for Six Months ~~2017,~~2018, compared ~~with $389.7 of net income~~to $264.0 million for Six Months ~~2016,~~2017. The decrease in net income was primarily ~~resulting from lower~~driven by $53.0 million of after-tax net charges related to the TWG acquisition, a $34.4 million after-tax loss on the sale of our mortgage solutions business, a $19.4 million unfavorable change in net realized gains (losses) on investments, ~~and~~a $12.8 million reduction in after-tax amortization of deferred gains ~~mainly related to~~primarily associated with the sale of ~~AEB, which declined by $108.4~~Assurant Employee Benefits and ~~$73.5, respectively, on an after-tax basis. These decreases were~~a $9.2 million decrease in net income from our Health operations. Additionally, the decrease reflects the absence of one-time items recorded in Six Months 2017, including income from client recoverables within our Global Lifestyle segment, a reversal of previously recorded compensation expense, as well as higher reportable catastrophes. The decrease was partially offset by the impact of a ~~$44.0 improvement~~

lower effective tax rate due to the TCJA and higher net income from our Global Lifestyle business, which included $9.4 million in ~~results associated our Health run-off operations.~~earnings contributions from the acquisition of TWG.

Global Housing

Overview

The table below presents information regarding Global Housing’s segment results of operations:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,						For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016			2018			2017			2018			2017
Revenues:
Net earned premiums	$	442.4		$	451.3		$	878.8		$	920.9		$	449.7		$	442.4		$	886.1		$	878.8
Fees and other income	107.8			109.8			203.1			217.6			92.8			107.8			179.5			203.1
Net investment income	16.8			17.9			36.0			36.2			15.9			16.8			36.1			36.0
Total revenues	567.0			579.0			1,117.9			1,174.7			558.4			567.0			1,101.7			1,117.9
Benefits, losses and expenses:
Policyholder benefits	188.2			202.7			351.5			382.2			187.2			188.2			356.3			351.5
Selling, underwriting, general and administrative expenses	294.3			291.6			585.9			592.4
Amortization of deferred acquisition costs and value of business acquired													50.4			46.8			100.0			97.7
Underwriting, general and administrative expenses													229.3			247.5			464.2			488.2
Total benefits, losses and expenses	482.5			494.3			937.4			974.6			466.9			482.5			920.5			937.4
Segment income before provision for income taxes	84.5			84.7			180.5			200.1			91.5			84.5			181.2			180.5
Provision for income taxes	28.3			27.8			62.4			66.8			18.9			28.3			37.4			62.4
Segment net income	$	56.2		$	56.9		$	118.1		$	133.3		$	72.6		$	56.2		$	143.8		$	118.1
Net earned premiums, fees and other:
Lender-placed insurance	$	305.9		$	321.7		$	611.5		$	668.4		$	288.5		$	305.9		$	578.2		$	611.5
Multi-family housing	90.3			78.3			175.7			155.3
Multifamily housing													100.3			90.3			197.5			175.7
Mortgage solutions	69.7			79.4			130.6			155.3			53.3			69.7			98.8			130.6
Manufactured housing and other	84.3			81.7			164.1			159.5			100.4			84.3			191.1			164.1
Total	$	550.2		$	561.1		$	1,081.9		$	1,138.5		$	542.5		$	550.2		$	1,065.6		$	1,081.9
Ratios:
Combined ratio for risk-based businesses (1)	87.0		%	87.3		%	85.0		%	84.0		%	85.7		%	87.0		%	85.5		%	85.0		%
Pre-tax income margin for fee-based, capital-light businesses (2)	11.7		%	11.2		%	10.3		%	11.1		%	14.3		%	11.7		%	12.9		%	10.3		%


(1)	The combined ratio for risk-based businesses is equal to total policyholder benefits, losses and expenses, including reportable catastrophe losses, divided by net earned premiums and fees and other income for lender-placed and manufactured housing and other risk-based businesses.


(2)	The pre-tax margin for fee-based, capital-light businesses equals income before provision for income taxes divided by net earned premiums and fees and other income for ~~multi-family~~multifamily housing and mortgage solutions.

~~Regulatory Matters~~

Please see Note 15 to the Consolidated Financial Statements included elsewhere in this Report for a description of Settlement Agreements relating to targeted market conduct examinations regarding the Company's lender-placed insurance products.

Lender-placed insurance products accounted for 57% and 59% of net earned premiums, fees and other income for Six Months 2017 and Six Months 2016, respectively. The approximate corresponding contributions to the segment net income in these periods were 57% and 64%, respectively. The portion of total segment net income attributable to lender-placed products may vary substantially over time depending on the frequency, severity and location of catastrophic losses, the cost of catastrophe reinsurance and reinstatement coverage, the variability of claim processing costs and client acquisition costs, and other factors. In addition, we expect placement rates for these products to decline.

For the Three Months Ended June 30, ~~2017~~2018 Compared to the Three Months Ended June 30, ~~2016~~2017

Net Income

Segment net income ~~decreased $0.7,~~increased $16.4 million, or 1%29%, to $72.6 million for Second Quarter 2018 from $56.2 million for Second Quarter 2017, ~~from $56.9 for Second Quarter 2016,~~ primarily due to the impact of a lower ~~revenue~~effective tax rate following the enactment of the TCJA. Absent the lower effective tax rate, net income increased primarily due to a higher contribution from our lender-placed insurance business due to a reduction in non-catastrophe loss activity and in expenses and growth in multifamily housing, partially offset by declines in our lender-placed insurance ~~business and increases in non-catastrophe loss experience, including losses that did not reach our reportable catastrophe loss threshold, partially offset by lower reportable catastrophe losses.~~

business.

Total Revenues

Total revenues decreased ~~$12.0,~~$8.6 million, or 2%, to ~~$567.0~~$558.4 million for Second Quarter ~~2017~~2018 from ~~$579.0~~$567.0 million for Second Quarter ~~2016. The decrease was~~2017. Net earned premiums increased $7.3 million, or 2%, primarily ~~due to~~driven by growth in our multifamily housing business from renters insurance, additional premiums from new commercial property and liability business as well as the continued growth of our international housing business. These increases were partially offset by lower ~~revenue~~volumes from our REO insurance product and the ongoing declines in placement rates in our lender-placed insurance ~~and mortgage solutions businesses. Net earned premiums decreased $8.9, or 2%, mainly due to an expected decline in placement rates.~~business. Fees and other income

decreased ~~$2.0,~~$15.0 million, or 2%14%, ~~mainly~~primarily due to a ~~decrease~~reduction in mortgage solutions fee income ~~which was primarily due to weaker market conditions in valuation~~driven by reduced client demand for originations and field ~~services and lower client volume. These decreases were partially offset by an increase in revenue from the multi-family housing business.~~services.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses decreased ~~$11.8,~~$15.6 million, or 2%3%, to ~~$482.5~~$466.9 million for Second Quarter ~~2017~~2018 from ~~$494.3~~$482.5 million for Second Quarter ~~2016, primarily due to a decrease in total policyholder benefits.~~2017. Total policyholder benefits decreased ~~$14.5,~~$1.0 million, or 7%1%, primarily due to nolower non-catastrophe loss experience from our lender-placed insurance business and $1.0 million of favorable development on reportable catastrophe losses ~~in Second~~from Third Quarter 2017, ~~compared to $24.6~~mostly offset by growth in ~~Second Quarter 2016.~~multifamily housing and other business described above. Reportable catastrophe losses include only individual catastrophic events that generated losses ~~to the Company~~ in excess of $5.0 million, pre-tax and net of reinsurance. ~~Partially offsetting this decrease is an increase in non-catastrophe losses primarily due to an increase in frequency and severity of wind and hail. Selling, underwriting,~~Underwriting, general and administrative expenses ~~increased $2.7,~~decreased $18.2 million, or 1%7%, primarily due to ~~additional~~a decrease in expenses ~~incurred~~related to ~~onboard new client loans.~~reduced volumes from our mortgage solutions and lender-placed insurance businesses.

For the Six Months Ended June 30, ~~2017~~2018 Compared to the Six Months Ended June 30, ~~2016~~2017

Net Income

Segment net income ~~decreased $15.2,~~increased $25.7 million, or ~~11%~~22%, to $143.8 million for Six Months 2018 from $118.1 million for Six Months 2017, ~~from $133.3~~primarily due to the impact of a lower effective tax rate following the enactment of the TCJA. Additionally, segment income for Six Months ~~2016,~~2018 included $7.7 million of after-tax reportable catastrophes, mainly from severe winter storms in the Northeastern U.S., compared to $0.6 million of after-tax reportable catastrophes for Six Months 2017. Absent the impact of these items, the increase was primarily due to ~~lower revenue~~growth in multifamily housing and a reduction in non-catastrophe loss activity and expenses in our lender-placed insurance business, ~~and increases in non-catastrophe loss experience,~~ partially offset by ~~lower reportable catastrophe losses.~~declines in our lender-placed insurance business.

Total Revenues

Total revenues decreased ~~$56.8,~~$16.2 million, or 5%1%, to ~~$1,117.9~~$1.10 billion for Six Months ~~2017~~2018 from ~~$1,174.7~~$1.12 billion for Six Months ~~2016.~~2017. Net earned premiums increased $7.3 million, or 1%, primarily driven by growth in our multifamily housing business from renters insurance, additional premiums from new commercial property and liability business as well as the continued growth of our international housing business. The ~~decrease~~increase was ~~primarily due to~~partially offset by lower ~~revenue~~volumes from our REO insurance product and the ongoing declines in placement rates in our lender-placed insurance ~~and mortgage solutions businesses. Net earned premiums decreased $42.1, or 5%, mainly due to an expected decline in placement rates.~~business. Fees and other income decreased ~~$14.5,~~$23.6 million, or 7%12%, ~~mainly~~primarily due to a ~~decrease~~reduction in mortgage solutions fee income ~~which was primarily due to weaker market conditions in valuation~~driven by reduced client demand for originations and field ~~services and lower client volume. These decreases were partially offset by an increase in revenue from the multi-family housing business.~~services.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses decreased ~~$37.2,~~$16.9 million, or 4%2%, to ~~$937.4~~$920.5 million for Six Months ~~2017~~2018 from ~~$974.6~~$937.4 million for Six Months ~~2016.~~2017. Total policyholder benefits ~~decreased $30.7,~~increased $4.8 million, or 8%1%, primarily due to a $4.9 million increase in net reportable catastrophe losses, of $6.1 in Six Months 2017, which was partially offset by $5.2 in favorable development related to Hurricane Matthew losses, compared to $39.0 of reportable catastrophe losses in Six Months 2016. In addition, this decrease was partially offset by an increase in non-catastrophe losses, primarily due to an increase in frequencyexcluding reinstatement premiums and ~~severity of wind and hail. Selling, underwriting,~~other assessments. Underwriting, general and administrative expenses decreased ~~$6.5,~~$24.0 million, or 1%5%, primarily due to ~~lower net commissions~~a decrease in expenses mostly driven by reduced volumes from our mortgage solutions and ~~premium taxes, partially offset by higher expenses to onboard new client loans.~~lender placed insurance businesses, as well as an increase in fees and reimbursements from the National Flood Insurance Program for processing flood claims for Hurricane Harvey.

Global Lifestyle

Overview

The table below presents information regarding Global Lifestyle’s segment results of operations:


	For the Three Months Ended June 30,						For the Six Months Ended June 30,						For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016			2018			2017			2018			2017
Revenues:
Net earned premiums	$	656.0		$	739.2		$	1,251.8		$	1,462.4		$	874.3		$	656.0		$	1,547.9		$	1,251.8
Fees and other income	180.0			175.7			389.1			386.8			227.9			180.0			472.8			389.1
Net investment income	26.4			26.3			52.9			53.2			36.6			26.4			68.7			52.9
Total revenues	862.4			941.2			1,693.8			1,902.4			1,138.8			862.4			2,089.4			1,693.8
Benefits, losses and expenses:
Policyholder benefits	178.1			161.0			326.7			323.1			239.3			178.1			420.9			326.7
Selling, underwriting, general and administrative expenses	624.2			731.7			1,229.9			1,470.8
Amortization of deferred acquisition costs and value of business acquired													395.6			283.6			675.9			534.6
Underwriting, general and administrative expenses													419.6			340.6			835.4			695.3
Total benefits, losses and expenses	802.3			892.7			1,556.6			1,793.9			1,054.5			802.3			1,932.2			1,556.6
Segment income before provision for income taxes	60.1			48.5			137.2			108.5			84.3			60.1			157.2			137.2
Provision for income taxes	19.9			(1.6		)	44.6			17.0			16.2			19.9			33.3			44.6
Segment net income	$	40.2		$	50.1		$	92.6		$	91.5		$	68.1		$	40.2		$	123.9		$	92.6
Net earned premiums, fees and other:
Global Connected Living (mobile and extended service contracts)	$	513.4		$	616.3		$	1,025.6		$	1,278.5
Global Vehicle Protection	208.2			196.5			383.0			362.4
Global Credit and Other	114.4			102.1			232.3			208.3
Global connected living (mobile, service contracts and assistance services)													$	629.3		$	513.4		$	1,231.4		$	1,025.6
Global automotive													361.2			208.2			563.7			383.0
Global financial services													111.7			114.4			225.6			232.3
Total	$	836.0		$	914.9		$	1,640.9		$	1,849.2		$	1,102.2		$	836.0		$	2,020.7		$	1,640.9
Net earned premiums, fees and other:
Domestic	$	529.2		$	631.5		$	1,035.5		$	1,286.0		$	736.2		$	529.2		$	1,315.7		$	1,035.5
International	306.8			283.4			605.4			563.2			366.0			306.8			705.0			605.4
Total	$	836.0		$	914.9		$	1,640.9		$	1,849.2		$	1,102.2		$	836.0		$	2,020.7		$	1,640.9
Ratios:
Combined ratio for risk-based businesses (1)	97.0		%	95.8		%	94.7		%	95.2		%	96.6		%	97.0		%	97.6		%	94.7		%
Pre-tax income margin for fee-based, capital-light businesses (2)	6.4		%	3.2		%	6.8		%	3.9		%	7.1		%	6.4		%	7.6		%	6.8		%


(1)	The combined ratio for risk-based businesses is equal to total policyholder benefits, losses and expenses divided by net earned premiums and fees and other income for ~~vehicle protection services, credit~~Global Automotive and ~~other businesses.~~Financial Services.


(2)	The pre-tax income margin for fee-based, capital-light businesses equals income before provision for income taxes divided by net earned premiums and fees and other income for Connected Living, including mobile, extended service contracts and assistance services.

For the Three Months Ended June 30, ~~2017~~2018 Compared to the Three Months Ended June 30, ~~2016~~2017

Net Income

Segment net income ~~decreased $9.9,~~increased $27.9 million, or ~~20%~~69%, to $68.1 million for Second Quarter 2018 from $40.2 million for Second Quarter 2017, benefitting from ~~$50.1 for Second Quarter 2016. The decrease was primarily due to~~a lower effective tax rate following the ~~absence~~enactment of the TCJA. Excluding the impact of a ~~prior year $18.0 nonrecurring~~lower effective tax ~~benefit related to a redemption of shares in our international structure. Absent this item,~~rate, segment net income increased ~~primarily~~mainly due to ~~improved profitability in~~increased income from our Connected Living business, which was ~~primarily~~mostly driven by ~~lower expenses and a one-time $2.6 (after-tax) adjustment for a North American original equipment manufacturer client in our extended service contract business, as well as modest~~ growth ~~in our~~from recently launched mobile ~~business. This increase was~~programs, partially offset by ~~less favorable loss experience from~~continued declines in credit insurance, now a component of the business we refer to as Financial Services. A $3.9 million income tax benefit in our ~~domestic vehicle protection service business.~~Financial Services business and $2.0 million of one-time benefits in our Global Automotive business also impacted the quarter. TWG contributed $9.4 million of income for the month of June 2018.

Total Revenues

Total ~~Revenues~~

~~Total~~ revenues ~~decreased $78.8,~~increased $276.4 million, or 8%32%, to ~~$862.4~~$1.14 billion for Second Quarter ~~2017~~2018 from ~~$941.2~~$862.4 million for Second Quarter ~~2016. Net~~2017. The increase in total revenue was largely attributed to additional net earned premiums, ~~decreased $83.2, or 11%, due to a change in program structure in~~fee and other income and net investment income from the ~~fourth quarter~~acquisition of ~~2016 impacting~~TWG of $211.9 million for the ~~accounting for revenues for a large service contract client on a gross instead~~month of ~~a net basis.~~June 2018. Excluding ~~this program structure change, Second Quarter 2017~~the impact of TWG, net earned premiums increased 9%$36.5 million, or 6%, primarily driven by increased revenue from our Connected Living business due to growth from existing and recently launched mobile programs, as well as growth from our Global Automotive business, mainly from our third-party administrator distribution channel. Excluding the impact of TWG, fees and other income increased $27.1 million, or 15%, primarily driven by growth from recently launched mobile programs, partially offset by lower mobile trade-in average selling prices and volume and declines in the legacy extended service contract business. Excluding the impact of TWG, net investment income was consistent year over year.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased $252.2 million, or 31%, to $1.05 billion for Second Quarter 2018 from $802.3 million for Second Quarter 2017. The increase in total benefits, losses and expenses was primarily attributed to additional benefits, losses and expenses from the acquisition of TWG. Excluding the impact of TWG, policyholder benefits increased $10.1 million, or 6%, primarily due to growth from our global mobile protection business. Excluding the impact of TWG, amortization of deferred acquisition costs and ~~international credit~~value of business acquired was consistent year over year. Excluding the impact of TWG, underwriting, general and administrative expenses increased $44.0 million, or 13%, primarily due to the growth from our global mobile programs and Global Automotive businesses. ~~This~~

For the Six Months Ended June 30, 2018 Compared to the Six Months Ended June 30, 2017

Net Income

Segment net income increased $31.3 million, or 34%, to $123.9 million for Six Months 2018 from $92.6 million for Six Months 2017, primarily due to the impact of a lower effective tax rate following the enactment of the TCJA and $9.4 million in earnings contribution from TWG. Excluding the impact of these items, segment net income increased mainly due to increased income from our Connected Living business, which was mostly driven by growth from mobile programs launched in 2017 and continued growth in existing mobile programs. The increase was ~~partly~~partially offset by ~~foreign exchange volatility. Fees~~$7.5 million of after-tax income from one-time client recoverables included in Six Months 2017, lower results from our mobile repair and logistics business and the continued runoff of our credit insurance products in our Financial Services business.

Total Revenues

Total revenues increased $395.6 million, or 23%, to $2.09 billion for Six Months 2018 from $1.69 billion for Six Months 2017. The increase was primarily attributed to additional net earned premiums, fee and other income and net investment income from the acquisition of TWG. Excluding the impact of TWG, net earned premiums increased $114.3 million, or 9%, mostly driven by increased revenue from our Connected Living business, due to growth from existing and recently launched mobile programs, as well as growth from our Global Automotive business. Excluding the impact of TWG, fees and other income increased ~~$4.3,~~$62.9 million, or 2%16%, primarily driven by growth from ~~new international~~recently launched mobile programs, partially offset by ~~lower volume~~a decrease from ~~domestic~~our mobile repair and logistics business due to lower domestic volumes and average selling price and declines in the legacy extended service contract business.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses ~~decreased $90.4,~~increased $375.6 million, or ~~10%~~24%, to ~~$802.3~~$1.93 billion for ~~Second Quarter 2017~~Six Months 2018 from ~~$892.7~~$1.56 billion for ~~Second Quarter 2016. Policyholder~~Six Months 2017. The increase in total benefits, losses and expenses was largely attributed to additional benefits, losses and expenses from the acquisition of TWG. Excluding the impact of TWG, policyholder benefits increased ~~$17.1,~~$43.1 million, or ~~11%~~13%, primarily due to growth and higher loss experience from our global mobile protection business. Excluding the impact of TWG, amortization of deferred acquisition costs and value of business acquired increased $27.6 million, or 5%, primarily driven by ~~less favorable loss experience in~~growth from our ~~domestic vehicle protection service business and mobile protection programs in Europe, combined with~~Global Automotive business. Excluding the ~~growth~~impact of our international credit insurance product. This increase was partly offset by the previously mentioned change in program structure for a large service contract client and foreign exchange volatility. Selling,TWG, underwriting, general and administrative expenses ~~decreased $107.5,~~increased $105.1 million, or 15%~~, primarily due to a change in program structure for a large service contract client previously mentioned. This decrease was partially offset by growth in our international mobile business.~~

~~For the Six Months Ended June 30, 2017 Compared to the Six Months Ended June 30, 2016~~

~~Net Income~~

Segment net income increased $1.1, or 1%, to $92.6 for Six Months 2017 from $91.5 for Six Months 2016. Results were impacted by certain one-time items, including the prior year's $18.0 tax benefit related to a redemption of shares in our international structure, partially offset by $7.5 (after-tax) in Six Months 2017 representing client recoverables resulting primarily from contractual benefits in certain international markets. Excluding these items, segment net income increased 16%, primarily driven by higher contributions from extended service contracts from original equipment manufacturers and other distribution channels, including the one-time $2.6 (after-tax) adjustment for a North American original equipment manufacturer client and expense efficiencies in Second Quarter 2017. The increase was partially offset by less favorable mobile loss experience in Europe.

~~Total Revenues~~

Total revenues decreased $208.6, or 11%, to $1,693.8 for Six Months 2017 from $1,902.4 for Six Months 2016. Net earned premiums decreased $210.6, or 14%, due to a change in program structure in the fourth quarter of 2016 impacting the accounting for revenues for a large service contract client on a gross instead of a net basis. Excluding this program structure change, Six Months 2017 net earned premiums increased 5%, primarily due to growth from our global mobile programs and international credit businesses. This increase was partially offset by foreign exchange volatility. Fees and other income increased $2.3, or 1%, primarily driven by the prior quarter aforementioned client recoverables and growth from new international mobile programs. This increase was partially offset by lower volume from domestic mobile repair and logistics business.

~~Total Benefits, Losses and Expenses~~

Total benefits, losses and expenses decreased $237.3, or 13%, to $1,556.6 for Six Months 2017 from $1,793.9 for Six Months 2016. Policyholder benefits increased $3.6, or 1%, primarily driven by higher loss experience in our mobile protection programs in Europe and domestic vehicle protection business, combined with the growth of our international credit insurance product. This increase was partly offset by a change in program structure for a large service contract client previously mentioned, favorable experience from global extended service contracts and foreign exchange volatility. Selling, underwriting, general and administrative expenses decreased $240.9, or 16%, primarily due to a change in program structure for a large service contract client and lower contributions from our international extended service contract business. This decrease was partially offset from growth in the international credit and mobileGlobal Automotive businesses.

Global Preneed

Overview

The table below presents information regarding Global Preneed’s segment results of operations:

For the Three Months Ended June 30, For the Six Months Ended June 30,
2017 2016 2017 2016
Revenues:
Net earned premiums $ 15.2
$ 16.1
$ 29.8
$ 31.8
Fees and other income 31.1
27.2
60.7
54.2
Net investment income 65.0
61.9
129.2
124.0
Total revenues 111.3
105.2
219.7
210.0
Benefits, losses and expenses:
Policyholder benefits 61.9
61.2
128.1
125.9
Selling, underwriting, general and administrative expenses 30.6
27.2
58.1
58.4
Total benefits, losses and expenses 92.5
88.4
186.2
184.3
Segment income before provision for income taxes 18.8
16.8
33.5
25.7
Provision for income taxes 6.0
5.5
10.8
8.7
Segment net income $ 12.8
$ 11.3
$ 22.7
$ 17.0



	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2018		2017		2018		2017
Revenues:
Net earned premiums	$	14.2	$	15.2	$	28.8	$	29.8
Fees and other income	32.7		31.1		64.3		60.7
Net investment income	67.9		65.0		133.7		129.2
Total revenues	114.8		111.3		226.8		219.7
Benefits, losses and expenses:
Policyholder benefits	65.0		61.9		131.7		128.1
Amortization of deferred acquisition costs and value of business acquired	17.2		16.3		33.7		28.9
Underwriting, general and administrative expenses	13.8		14.3		30.0		29.2
Total benefits, losses and expenses	96.0		92.5		195.4		186.2
Segment income before provision for income taxes	18.8		18.8		31.4		33.5
Provision for income taxes	4.1		6.0		6.9		10.8
Segment net income	$	14.7	$	12.8	$	24.5	$	22.7

For the Three Months Ended June 30, ~~2017~~2018 Compared to the Three Months Ended June 30, ~~2016~~2017

Net Income

Segment net income increased ~~$1.5,~~to $14.7 million in Second Quarter 2018, or ~~13%~~15%, tofrom $12.8 ~~for~~million in Second Quarter 2017, ~~from $11.3 for Second Quarter 2016. The increase was~~ primarily due to ~~higher investment~~a lower effective tax rate following the enactment of the TCJA. Absent the lower effective tax rate, Global Preneed net income ~~and~~was consistent as growth ~~in the Canadian~~from our domestic preneed business, ~~partially~~including prior period sales of the final need product, was offset by an increase in ~~selling, underwriting, general and administrative expenses.~~benefits from policies in runoff that are pegged to the Consumer Price Index (“CPI”).

Total Revenues

Total revenues increased ~~$6.1,~~$3.5 million, or 6%3%, to ~~$111.3~~$114.8 million for Second Quarter ~~2017~~2018 from ~~$105.2~~$111.3 million for Second Quarter ~~2016. The increase~~2017. Total net earned premiums and fees and other income were slightly higher in Second Quarter 2018 compared to Second Quarter 2017 as growth from our domestic preneed business, including prior period sales of the final need product, was ~~mainly~~mostly offset by lower production in Canada. Net investment income increased $2.9 million, or 4%, primarily due to ~~growth in the Canadian preneed business and higher investment income due to growth~~an increase in invested ~~assets.~~assets in line with the growth of the domestic preneed business.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased ~~$4.1,~~$3.5 million, or 5%4%, to $96.0 million for Second Quarter 2018 from $92.5 million for Second Quarter 2017, ~~from $88.4 for Second Quarter 2016. This increase was~~ primarily due to ~~higher incurred claims related~~an increase in losses and credited interest on new and in-force policies and an increase in benefits on policies in runoff that are pegged to ~~growth in~~ the ~~Canadian preneed business and higher general expenses.~~CPI.

For the Six Months Ended June 30, ~~2017~~2018 Compared to the Six Months Ended June 30, ~~2016~~2017

Net Income

Segment net income increased ~~$5.7, or 34%,~~ to ~~$22.7 for~~$24.5 million in Six Months ~~2017~~2018, or 8%, from ~~$17.0 for~~$22.7 million in Six Months ~~2016. The increase was~~2017, primarily due to a ~~$3.9 (after-tax)~~lower effective tax rate following the enactment of the TCJA. Absent the lower effective tax rate, Global Preneed net ~~adjustment related~~income decreased due to ~~additional reserves and the amortization of deferred acquisition costs for~~ an ~~older block of preneed~~increase in benefits from policies in ~~Six Months 2016~~runoff that are pegged to the CPI and ~~higher investment income due to growth~~an increase in ~~invested assets.~~information technology expenses.

Total Revenues

Total revenues increased ~~$9.7,~~$7.1 million, or 5%3%, to ~~$219.7~~$226.8 million for Six Months ~~2017~~2018 from ~~$210.0~~$219.7 million for Six Months ~~2016. The increase was mainly~~2017. Fees and other income increased $3.6 million, or 6%, primarily due to growth in the ~~Canadian~~U.S. business and in the impact of foreign exchange. Net investment income increased $4.5 million, or 3%, due to an increase in invested assets in line with the growth of the domestic preneed business and ~~higher investment income due to growth~~ in ~~invested assets.~~the impact of foreign exchange.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses increased ~~$1.9,~~$9.2 million, or 1%5%, to $195.4 million for Six Months 2018 from $186.2 million for Six Months 2017, ~~from $184.3 for Six Months 2016. This increase was~~ primarily due to ~~foreign exchange volatility, higher incurred claims related~~an increase in benefits on policies in runoff pegged to the CPI, increased information technology expense and growth in the ~~Canadian~~domestic preneed business and higher general expenses, partially offset by the adjustment related to additional reserves and the amortization of deferred acquisition costs for an older block of preneed policies in Six Months 2016.business.

~~Assurant Employee Benefits~~

~~Overview~~

~~The table below presents information regarding AEB’s segment results of operations, through the sale date of March 1, 2016:~~

For the Six Months Ended June 30,
2016
Revenues:
Net earned premiums $ 178.0
Fees and other income 4.2
Net investment income 17.3
Total revenues 199.5
Benefits, losses and expenses:
Policyholder benefits 118.4
Selling, underwriting, general and administrative expenses 64.3
Total benefits, losses and expenses 182.7
Segment income before provision for income taxes 16.8
Provision for income taxes 6.3
Segment net income $ 10.5

On March 1, 2016, the Company sold AEB to Sun Life Assurance Company of Canada, the wholly-owned subsidiary of Sun Life. For more information on the sale see Note 5 to the Consolidated Financial Statements, included elsewhere in this Report.

The amounts included in Six Months 2016 represent January and February 2016 results of operations, the period prior to the sale. All amounts related to the sale are included in the Total Corporate and Other segment, discussed later. Since this business has been sold and is no longer part of our ongoing operations, a discussion of results for the periods presented has been excluded.

Total Corporate and Other

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


	For the Three Months Ended June 30,																For the Three Months Ended June 30,
	2017								2016								2018									2017
	Corporate & Other		Health			Total Corporate & Other			Corporate & Other		Health			Total Corporate & Other			Corporate and Other			Health			Total Corporate and Other			Corporate and Other		Health			Total Corporate and Other
Revenues:
Net earned premiums	$	—	$	1.7		$	1.7		$	—	$	(4.3	)	$	(4.3	)	$	—		$	0.1		$	0.1		$	—	$	1.7		$	1.7
Fees and other income	6.9		1.1			8.0			7.3		8.3			15.6			0.6			0.2			0.8			6.9		1.1			8.0
Net investment income	9.8		3.7			13.5			11.7		2.0			13.7			14.6			0.6			15.2			9.8		3.7			13.5
Net realized gains on investments	13.2		—			13.2			21.6		—			21.6
Amortization of deferred gains and gains on disposal of businesses	23.4		—			23.4			125.8		—			125.8
Net realized (losses) gains on investments																	(11.4		)	—			(11.4		)	13.2		—			13.2
Amortization of deferred gains on disposal of businesses																	15.0			—			15.0			23.4		—			23.4
Total revenues	53.3		6.5			59.8			166.4		6.0			172.4			18.8			0.9			19.7			53.3		6.5			59.8
Benefits, losses and expenses:
Policyholder benefits	—		(11.8		)	(11.8		)	—		(24.1		)	(24.1		)	—			(0.9		)	(0.9		)	—		(11.8		)	(11.8		)
Selling, underwriting, general and administrative expenses	29.9		14.0			43.9			58.0		37.8			95.8
General and administrative expenses																	109.4			1.5			110.9			29.9		14.0			43.9
Interest expense	12.4		—			12.4			15.2		—			15.2			26.0			—			26.0			12.4		—			12.4
Total benefits, losses and expenses	42.3		2.2			44.5			73.2		13.7			86.9			135.4			0.6			136.0			42.3		2.2			44.5
Segment loss before benefit for income taxes	11.0		4.3			15.3			93.2		(7.7		)	85.5
Provision (benefit) for income taxes	3.5		0.8			4.3			36.8		(2.3		)	34.5
Segment net income (loss)	$	7.5	$	3.5		$	11.0		$	56.4	$	(5.4	)	$	51.0
Segment (loss) income before (benefit) provision for income taxes																	(116.6		)	0.3			(116.3		)	11.0		4.3			15.3
(Benefit) provision for income taxes																	(28.0		)	0.1			(27.9		)	3.5		0.8			4.3
Segment net (loss) income																	(88.6		)	0.2			(88.4		)	7.5		3.5			11.0
Less: Preferred stock dividends																	(4.8		)	—			(4.8		)	—		—			—
Net (loss) income attributable to common stockholders																	$	(93.4	)	$	0.2		$	(93.2	)	$	7.5	$	3.5		$	11.0


	For the Six Months Ended June 30,																For the Six Months Ended June 30,
	2017								2016								2018									2017
	Corporate & Other		Health			Total Corporate & Other			Corporate & Other		Health			Total Corporate & Other			Corporate and Other			Health			Total Corporate and Other			Corporate and Other		Health			Total Corporate and Other
Revenues:
Net earned premiums	$	—	5.2			5.2			$	—	$	24.4		$	24.4		$	—		0.4			0.4			$	—	$	5.2		$	5.2
Fees and other income	11.8		2.4			14.2			9.8		13.4			23.2			1.8			0.3			2.1			11.8		2.4			14.2
Net investment income	19.4		4.8			24.2			18.9		5.9			24.8			25.6			1.7			27.3			19.4		4.8			24.2
Net realized gains on investments	16.6		—			16.6			183.3		—			183.3			(10.9		)	—			(10.9		)	16.6		—			16.6
Amortization of deferred gains and gains on disposal of businesses	60.4		—			60.4			173.4		—			173.4
Gain on pension plan curtailment	—		—			—			29.6		—			29.6
Amortization of deferred gains on disposal of businesses																	33.5			—			33.5			60.4		—			60.4
Total revenues	108.2		12.4			120.6			415.0		43.7			458.7			50.0			2.4			52.4			108.2		12.4			120.6
Benefits, losses and expenses:
Policyholder benefits	—		(31.9		)	(31.9		)	—		(5.0		)	(5.0		)	—			(3.7		)	(3.7		)	—		(31.9		)	(31.9		)
Selling, underwriting, general and administrative expenses	57.5		27.4			84.9			121.3		90.7			212.0
General and administrative expenses																	160.4			3.2			163.6			57.5		27.4			84.9
Interest expense	25.0		—			25.0			29.7		—			29.7			47.5			—			47.5			25.0		—			25.0
Total benefits, losses and expenses	82.5		(4.5		)	78.0			151.0		85.7			236.7			207.9			(0.5		)	207.4			82.5		(4.5		)	78.0
Segment income (loss) before provision (benefit) for income taxes	25.7		16.9			42.6			264.0		(42.0		)	222.0
Provision (benefit) for income taxes	6.5		5.5			12.0			94.0		(9.4		)	84.6
Segment net income (loss)	$	19.2	$	11.4		$	30.6		$	170.0	$	(32.6	)	$	137.4
Segment (loss) income before (benefit) provision for income taxes																	(157.9		)	2.9			(155.0		)	25.7		16.9			42.6
(Benefit) provision for income taxes																	(36.5		)	0.7			(35.8		)	6.5		5.5			12.0
Segment net (loss) income																	(121.4		)	2.2			(119.2		)	19.2		11.4			30.6
Less: Preferred stock dividends																	(4.8		)	—			(4.8		)	—		—			—
Net (loss) income attributable to common stockholders																	$	(126.2	)	$	2.2		$	(124.0	)	$	19.2	$	11.4		$	30.6

Corporate &and Other

For the Three Months Ended June 30, ~~2017~~2018 Compared to the Three Months Ended June 30, ~~2016~~2017

Net (Loss) Income Attributable to Common Stockholders

~~Net income declined $48.9~~Results for Corporate and Other decreased $100.9 million to ~~$7.5~~a net loss attributable to common stockholders of $93.4 million for Second Quarter ~~2017 compared with $56.4~~2018 from net income attributable to common stockholders of $7.5 million for Second Quarter ~~2016.~~2017. The decrease was primarily ~~due~~driven by $32.5 million of after-tax net charges related to ~~lower~~the TWG acquisition and a $34.4 million after-tax net loss on the sale of our mortgage solutions business. The decrease was also attributed to a $17.6 million unfavorable change in net realized gains (losses) on investments, a $3.3 million reduction in after-tax amortization of deferred gains ~~mainly related to~~primarily associated with the sale of ~~AEB, which declined by $66.6 on~~Assurant Employee Benefits and an ~~after-tax basis. This decrease was partially offset by lower selling, underwriting, general and administrative expenses primarily due to a $10.8 (after-tax) intangible asset impairment charge~~increase in ~~Second Quarter 2016~~interest expense from acquisition related ~~to trade names no longer used or defended by the Company, as well as other expense reductions related to management initiatives.~~financing.

Total Revenues

Total revenues decreased ~~$113.1~~$34.5 million, or 65%, to ~~$53.3~~$18.8 million for Second Quarter ~~2017 compared with $166.4~~2018 from $53.3 million for Second Quarter ~~2016.~~2017. The decrease was primarily related to a ~~$102.4 decrease~~$24.6 million unfavorable change in ~~amortization of~~net realized gains (losses) on investments and an $8.4 million reduction in deferred gains ~~mainly~~primarily associated with Assurant Employee Benefits. These decreases were partially offset by a $4.8 million, or 49%, increase in net investment income mostly driven by $2.4 million of additional income earned on the pre-close investment of proceeds from acquisition related financing and $1.8 million of investment management fees earned from certain consolidated investment entities beginning in the Fourth Quarter 2017. See Note 7 to the ~~sale of AEB.~~Consolidated Financial Statements, included elsewhere in this Report.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses ~~decreased $30.9~~increased $93.1 million, or 220%, to ~~$42.3~~$135.4 million for Second Quarter ~~2017 compared with $73.2~~2018 from $42.3 million for Second Quarter ~~2016.~~2017. The ~~decrease~~increase was primarily ~~due to the pre-tax $16.7 intangible asset impairment charge in Second Quarter 2016~~ related to ~~trade names no longer used or defended by~~$35.3 million of transaction and integration related expenses associated with the ~~Company. In addition, Second Quarter 2016 included residual expenses related to~~TWG acquisition and a $43.5 million loss on the sale of ~~AEB.~~our mortgage solutions business. Interest expense increased $13.6 million due to additional interest expense from acquisition related financing.

For the Six Months Ended June 30, ~~2017~~2018 Compared to the Six Months Ended June 30, ~~2016~~2017

Net (Loss) Income Attributable to Common Stockholders

~~Net income declined $150.8~~Results for Corporate and Other decreased $145.4 million to ~~$19.2~~a net loss attributable to common stockholders of $126.2 million for Six Months ~~2017 compared with $170.0~~2018 from net income attributable to common stockholders of $19.2 million for Six Months ~~2016.~~2017. The decrease was primarily ~~due~~driven by $53.0 million of after-tax net charges related to ~~lower~~the TWG acquisition and a $34.4 million after-tax net loss on the sale of our mortgage solutions business. The decrease was also attributed to a $19.4 million unfavorable change in net realized gains (losses) on investments, ~~and~~a $12.8 million reduction in after-tax amortization of deferred gains ~~mainly related to the sale of AEB, which declined by $108.4 and $73.5, respectively, on an after-tax basis, and a $19.2 (after-tax) curtailment gain~~primarily associated with ~~our pension plan freeze during Six Months 2016.~~Assurant Employee Benefits and an increase in interest expense from acquisition related financing.

Total Revenues

Total revenues decreased ~~$306.8~~$58.2 million, or 54%, to ~~$108.2~~$50.0 million for Six Months ~~2017 compared with $415.0~~2018 from $108.2 million for Six Months ~~2016.~~2017. The decrease was primarily related to a ~~$166.7 decrease~~$27.5 million unfavorable change in net realized gains (losses) on investments and a ~~$113.0 decrease~~$26.9 million reduction in ~~amortization of~~ deferred gains ~~both~~ primarily ~~related to the sale of AEB, and a $29.6 curtailment gain~~ associated with ~~our pension plan freeze during Six Months 2016.~~Assurant Employee Benefits.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses ~~decreased $68.5~~increased $125.4 million, or 152%, to ~~$82.5~~$207.9 million for Six Months ~~2017 compared with $151.0~~2018 from $82.5 million for Six Months ~~2016.~~2017. The ~~decrease~~increase was primarily ~~due~~related to $42.8 million of transaction and integration related expenses associated with the ~~$26.7~~TWG acquisition and a $43.5 million net loss on ~~retroactive reinsurance component related to~~ the sale of our ~~AEB~~

~~segment and a $16.7 intangible asset impairment charge~~mortgage solutions business. Interest expense increased $22.5 million due to additional interest expense from acquisition related ~~to trade names no longer used or defended by~~financing. Additionally, the ~~Company during Six Months 2016. In addition, Six Months 2016 included residual expenses related~~increase was also due to the ~~sale~~reversal in the first quarter of ~~AEB.~~

2017 of previously recorded compensation expense.

Assurant Health

Assurant began to wind down its ~~major~~ medical insurance operations in June 2015, and the Company substantially completed its exit of the health insurance market in ~~2016 and substantially completed the wind down in First Quarter 2017.~~2016.

The Affordable Care Act

The Affordable Care Act introduced new ~~and significant~~ premium stabilization programs in 2014: reinsurance, risk adjustment, and risk corridor (together, the “3 Rs”). These programs were meant to mitigate the potential adverse impact to individual health insurers as a result of Affordable Care Act provisions that became effective January 1, 2014.

~~Reinsurance~~

corridor. As of June 30, ~~2017,~~2018, we have no net reinsurance recoverables ~~on our consolidated balance sheets.~~related to these programs. During ~~Six Months 2017,~~Second Quarter 2018, we collected ~~$32.9~~$0.1 million under the ~~2015 program.~~

~~Risk Adjustment~~

~~During Six Months 2017,~~risk adjustment programs. Finally, we ~~collected $4.1 under the 2014 - 2015 programs.~~

~~Risk Corridor~~

We have not recorded a net receivable under ~~these~~the risk corridor programs because payments from the U.S. Department of Health and Human Services ~~("HHS")~~ are considered unlikely.

For the Three and Six Months Ended June 30, 2018 Compared to the Three and Six Months Ended June 30, 2017 ~~Compared to the Three Months Ended June 30, 2016~~

Net Income ~~(Loss)~~

~~Segment results improved $8.9~~Net income decreased $3.3 million to ~~a net income of $3.5~~$0.2 million for Second Quarter ~~2017~~2018 from ~~a net loss of $5.4~~$3.5 million for Second Quarter ~~2016. The improvement~~2017. Net income decreased $9.2 million to $2.2 million for Six Months 2018 from $11.4 million for Six Months 2017. In each case, the decrease was primarily due to a reduction in favorable ~~reserve~~claims development ~~during~~as we continue to run-off the ~~continued run-off of operations and an early redemption of a structured investment security.~~business.

Total Revenues

Total revenues ~~increased $0.5~~decreased $5.6 million to ~~$6.5~~$0.9 million for Second Quarter ~~2017~~2018 from ~~$6.0~~$6.5 million for Second Quarter ~~2016. The increase~~2017. Total revenues decreased $10.0 million to $2.4 million for Six Months 2018 from $12.4 million for Six Months 2017. In each case, the decrease was ~~mainly~~primarily due to ~~a $2.7 early redemption of a structured investment security, partially offset by decreases in net earned premiums and fees and other income as a result of~~ our exit of the health insurance market.

Total Benefits, Losses and Expenses

Total benefits, losses and expenses in Second Quarter 2018 decreased ~~$11.5~~ to $0.6 million from $2.2 million for Second Quarter 2017 from $13.7 for Second Quarter 2016. The volume reduction is related to the continued runoff of the business. Selling, underwriting, general and administrative expenses also decreased $23.8, related to the continued runoff of the business.

~~For the Six Months Ended June 30, 2017 Compared to the Three Months Ended June 30, 2016~~

~~Net Income (Loss)~~

Segment results improved $44.0 to a net income of $11.4 for Six Months 2017 from a net loss of $32.6 for Six Months 2016. The improvement was primarily due to lower expenses as we continue to runoff the business.

~~Total Revenues~~

~~Total revenues decreased $31.3 to $12.4 for Six Months 2017 from $43.7 for Six Months 2016. The decrease was mainly as a result of our exit of the health insurance market.~~

~~Total Benefits, Losses and Expenses~~

2017. Total benefits, losses and expenses in Six Months 2018 decreased ~~$90.2~~ to a net ~~gain~~benefit of ~~$4.5 for~~$0.5 million compared to the Six Months 2017 ~~from an expense~~net benefit of ~~$85.7 for Six Months 2016. Policyholder benefits decreased $26.9,~~$4.5 million. The change is primarily due to ~~favorable reserve development during the continued runoff of operations.Selling, underwriting, general and administrative expenses decreased $63.3, mostly related to~~ a reduction ~~of general expenses~~in favorable claims development as we continue to run off the business.

Investments

The Company had total investments of ~~$11,640.2~~$13.39 billion and ~~$11,479.0~~$11.55 billion as of June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively. Net unrealized gains on the Company's fixed maturity portfolio ~~increased $171.5~~decreased $385.6 million during Six Months ~~2017,~~2018, from ~~$701.3 at~~$906.1 million as of December 31, ~~2016~~2017 to ~~$872.8 at~~$520.5 million as of June 30, ~~2017.~~2018. This ~~increase~~decrease was mainly due to ~~a decrease~~an increase in Treasury yields and a ~~tightening~~widening in credit ~~spread.~~spreads.

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


	As of								As of
Fixed Maturity Securities by Credit Quality (Fair Value)	June 30, 2017				December 31, 2016				June 30, 2018				December 31, 2017
Aaa / Aa / A	$	6,084.7	63.5	%	$	6,000.7	62.7	%	$	7,056.7	62.4	%	$	6,155.4	63.7	%
Baa	2,886.6		30.1	%	2,903.8		30.3	%	3,321.6		29.4	%	2,982.5		30.9	%
Ba	421.4		4.4	%	435.2		4.6	%	571.9		5.1	%	400.8		4.1	%
B and lower	186.7		2.0	%	232.4		2.4	%	347.3		3.1	%	123.9		1.3	%
Total	$	9,579.4	100.0	%	$	9,572.1	100.0	%	$	11,297.5	100.0	%	$	9,662.6	100.0	%

Major categories of net investment income were as follows:


	Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016			2018			2017			2018			2017
Fixed maturity securities	$	105.7		$	100.4		$	208.6		$	212.2		$	107.8		$	105.7		$	212.4		$	208.6
Equity securities	5.9			5.9			11.8			12.7			5.1			5.9			10.1			11.8
Commercial mortgage loans on real estate	7.2			10.3			16.2			24.0			7.8			7.2			16.1			16.2
Policy loans	0.7			0.6			1.1			1.2
Short-term investments	0.9			1.5			2.7			2.1			3.7			0.9			6.1			2.7
Other investments	3.1			0.1			6.1			1.9			3.8			3.8			9.9			7.2
Cash and cash equivalents	3.7			5.5			6.9			10.5			9.5			3.7			14.4			6.9
Revenue from consolidated investment entities (1)													17.4			—			30.9			—
Total investment income	127.2			124.3			253.4			264.6			155.1			127.2			299.9			253.4
Investment expenses	(5.5		)	(4.5		)	(11.1		)	(9.1		)	(4.7		)	(5.5		)	(8.9		)	(11.1		)
Expenses from consolidated investment entities (1)													(14.8		)	—			$	(25.2	)	$	—
Net investment income	$	121.7		$	119.8		$	242.3		$	255.5		$	135.6		$	121.7		$	265.8		$	242.3

(1)

The net of revenues and expenses from consolidated investment entities of $2.6 million for Second Quarter 2018 includes $(0.3) million and $1.1 million of investment (loss) income from the Company's direct investment the real estate fund and collateralized loan obligations ("CLOs"), respectively, and $1.8 million related to investment management fees. The net revenues and expenses from consolidated investment entities of $5.7 million for Six Months 2018 includes $1.6 million and $1.9 million of investment income from the Company's direct investment the real estate fund and CLOs, respectively, and $2.2 million related to investment management fees. Refer to Note 8 - Variable Interest Entities, for further detail.

Net investment income increased $13.9 million, or 11%, to $135.6 million for Second Quarter 2018 from $121.7 million for Second Quarter 2017. Net investment income for Second Quarter 2018 increased mainly due to a $9.3 million increase in investment income from TWG acquired investments and $1.0 million from the early payoff of a previously impaired structured security. Absent these items, the increase in net investment income was primarily due to an increase in invested assets and changes in the asset mix.

Net investment income increased ~~$1.9,~~$23.5 million, or 2%10%, to ~~$121.7~~$265.8 million for ~~Second Quarter 2017~~Six Months 2018 from ~~$119.8~~$242.3 million for ~~Second Quarter 2016. The~~Six Months 2017. Net investment income for Six Months 2018 increased mainly due to $9.3 million increase ~~was primarily attributable to an~~in investment income from TWG acquired investments, $3.3 million increase in interest income from real estate joint venture partnerships, $2.9 million of interest income from the recovery of losses on certain mortgage-backed securities and $1.0 million from the early ~~redemption~~payoff of a previously impaired structured ~~investment security, partially offset by lower~~security. Absent these items, the increase in net investment income was primarily due to ~~lower~~an increase in invested assets and lower investment yields. Net investment income decreased $13.2, or 5%, to $242.3 for Six Months 2017 from $255.5 for Six Months 2016. This decrease was primarily attributable to lower invested assets and lower investment yields, partially offset by an early redemption of a structured investment security.changes in the asset mix.

As of June 30, ~~2017,~~2018, the Company owned ~~$83.3~~$56.2 million of securities guaranteed by financial guarantee insurance companies. Included in this amount was ~~$74.1~~$51.2 million of municipal securities, whose credit rating was A+A with the guarantee, but would have had a rating of ABBB+ without the guarantee.

For more information on the Company's investments, ~~please~~ see Notes 7 and 89 to the Consolidated Financial Statements, included elsewhere in this Report.

Catastrophe Reinsurance Program

In June 2018, we finalized our $1.30 billion 2018 property catastrophe reinsurance program, which includes coverage in the U.S., Caribbean and Latin America. 2018 reinsurance premiums for this program are estimated to be $121 million, compared to $126 million in 2017. This reduction was mainly driven by the Company’s declining catastrophe exposure within its lender-placed insurance offering. Coverage was placed with more than 40 reinsurers that are all rated A- or better by A.M. Best. These amounts include the extension of the 2017 Latin America protection which will renew on September 1, 2018 and is subject to changes in coverage amount, retention and cost. In addition, actual reinsurance premiums will vary if exposure changes significantly from estimates or reinstatement premiums are required due to catastrophe events.

The U.S. per-occurrence catastrophe coverage includes a main reinsurance program providing $985 million of coverage in excess of a $120 million retention. In addition, it includes multiyear reinsurance contracts covering 32% of the $855 million layers in excess of $240 million. All layers of the program allow for one automatic reinstatement and include a cascading feature that provides multi-event protection in which higher coverage layers drop down as the lower layers and reinstatement limit are exhausted. Furthermore, the Florida Hurricane Catastrophe Fund provides coverage for losses up to 90% of $283 million in excess of a $88 million retention. In the event of a Florida hurricane, this coverage will be utilized prior to the main U.S. reinsurance program. After applying coverage, any remaining losses would then be eligible for recovery within the main reinsurance program. The program is covered for gross Florida losses of up to $1.4 billion. Utilizing both the coverage from the U.S. reinsurance program and the Florida Hurricane Catastrophe Fund, the maximum retention for a Florida event would be $120 million.

International per-occurrence catastrophe coverage increased as the Company continues to expand its business in select property markets. This includes Caribbean protection of up to $162.5 million in excess of a $17.5 million retention, and Latin America protection of up to $183.5 million in excess of a $4.5 million retention (which is an extension of the 2017 reinsurance program that will renew on September 1, 2018 and is subject to changes in coverage amount and retention). In these regions, the Company’s product offerings are primarily residential dwelling policies covering the structure and contents.

Liquidity and Capital Resources

Regulatory Requirements

Assurant, Inc. is a holding company and, as such, has limited direct operations of its own. Our holding company’s assets consist primarily of the capital stock of our subsidiaries. Accordingly, our holding company’s 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. The ability to pay such dividends and to make such other payments from our insurance subsidiaries will be limited by applicable laws and regulations of the states in which our subsidiaries are domiciled, which subject our subsidiaries to significant regulatory restrictions. The dividend requirements and regulations vary from state to state and by type of insurance provided by the applicable subsidiary. These laws and regulations require, among other things, our insurance subsidiaries to maintain minimum solvency requirements and limit the amount of dividends they can pay to the holding company. ~~For further information on pending amendments to state insurance holding company laws, see~~See “Item ~~1A—~~1A — Risk ~~Factors—~~Factors — Risks Related to Our ~~Industry—~~Industry — Changes in insurance regulation may reduce our profitability and limit our ~~growth”~~growth” in our ~~2016~~2017 Annual 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.

Regulators or rating agencies could become more conservative in their methodology and criteria, increasing capital requirements for our insurance subsidiaries.

In ~~Six Months 2017,~~2018, in addition to assigning ratings to the Company’s new debt issuances the following actions were taken by the rating agencies:

A.M. Best

~~Withdrew the~~Affirmed all ratings of ~~John Alden Life Insurance Company and Time Insurance Company (Assurant Health legal entities).~~legacy Assurant entities with a stable outlook, except for a revised outlook on the financial strength ratings to negative from stable for our two subsidiaries that sold the Assurant Employee Benefits business through reinsurance due to their diminished profile following the sale.

~~Ratings~~Upgraded the financial strength ratings of ~~all other~~ rated TWG entities ~~were affirmed~~from A- to A with a stable outlook.

Moody's Investor Services ("Moody's")

~~All~~In connection with the acquisition of TWG and the related financing, lowered the senior debt rating to Baa3 from Baa2, the subordinated debt rating to Ba1 from Baa3.

The insurance financial strength ratings ~~remain unchanged.~~of property and casualty operating subsidiaries revised to A3 from A2, life insurance subsidiaries revised to Baa1 from A3 and the commercial paper rating to P-3 from P-2, with a stable outlook on all ratings.

Standard and Poor’s (“S&P”)

~~All~~In connection with the acquisition of TWG and the related financing, lowered the long-term issuer credit rating of the holding company from BBB+ to BBB with a stable outlook.

Affirmed the short-term issuer credit rating.

Financial strength ratings ~~remain unchanged.~~of rated operating subsidiaries were affirmed with a stable outlook.

~~No actions were taken on Assurant's debt rating and other financial strength ratings by any of the agencies and these ratings remain unchanged.~~ For further information on our ratings and the risks of ratings downgrades, see “Item ~~1—Business”~~1-Business” and “Item ~~1A—Risk Factors—Risks~~1A-Risk Factors-Risks Related to Our ~~Company—~~Company-A.M. Best, Moody’s and S&P rate the financial strength of our insurance company subsidiaries, and a decline in these ratings could affect our standing in the insurance industry and cause our sales and earnings to decrease” in our ~~2016~~2017 Annual Report.

For ~~2017,~~2018, the maximum amount of dividends our U.S. domiciled insurance subsidiaries could pay, under applicable laws and regulations without prior regulatory approval, is approximately ~~$319.0.~~

$340.0 million.

Liquidity

Holding Company

As of June 30, ~~2017,~~2018, we had ~~$623.9~~approximately $497.2 million in holding company capital. We use the term “holding company capital” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc., out of a total of ~~$738.1,~~$642.5 million, which we are not otherwise holding for a specific purpose as of the balance sheet date. We can use such capital for stock repurchases, ~~stockholder~~ dividends, acquisitions, and other corporate purposes. $250.0 million of the ~~$623.9~~$497.2 million of holding company capital is intended to serve as a buffer against remote risks (such as large-scale ~~hurricanes)~~catastrophes).

Dividends or returns of capital paid by our subsidiaries to the holding company, net of infusions and excluding amounts used for acquisitions, were approximately ~~$203.0~~$478.0 million for Six Months ~~2017, which included $86.0 from Assurant Health and $117.0~~2018, including approximately $466.0 million from legal entities in our Global Housing, Global Lifestyle and Global Preneed operating ~~segments.~~segments, including approximately $225.0

million related to the reduction in deferred tax liabilities following the enactment of the TCJA, as well as approximately $12.0 million from Assurant Health and capital formerly backing Assurant Employee Benefits. In ~~2016,~~2017, dividends, net of infusions and excluding amounts used ~~or set aside~~ for acquisitions, ~~made~~paid to the holding company from its subsidiaries were $374.0 million, which included approximately $229.0 million from legal entities in our Global Housing, Global Lifestyle and Global Preneed operating ~~companies were $1,653.0,~~segments and approximately $145.0 million from Assurant Health and capital formerly backing Assurant Employee Benefits.

The Company also has a five-year senior unsecured $450.0 million revolving credit agreement (the “2017 Credit Facility”) with a syndicate of banks arranged by JP Morgan and Wells Fargo. The 2017 Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and/or letters of credit from a sole issuing bank in an aggregate amount of $450.0 million, which ~~includes approximately $894.0~~may be increased up to $575.0 million, and is available until December 2022, provided the Company is in compliance with all covenants. The 2017 Credit Facility has a sublimit for letters of ~~dividends from statutory insurance subsidiaries that received cash proceeds related to the sale~~credit issued thereunder of ~~AEB.~~

$50.0 million.

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 without limitation, returning capital to ~~shareholders~~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, the Company may also seek to purchase its outstanding debt in open market repurchases or privately negotiated transactions. We made share repurchases and paid dividends to our common stockholders of ~~$276.3~~$60.6 million and ~~$994.8~~$508.5 million during Six Months ~~2017~~2018 and the year ended December 31, ~~2016,~~2017, respectively. We expect ~~2017~~2018 operating segment dividends from ~~legal entities in our~~ Global Housing, Global Lifestyle and Global Preneed ~~operating segments~~ to ~~approximate~~exceed segment net income, subject to the growth of the ~~businesses,~~business, rating agency and regulatory capital requirements. In addition, in 2018, we expect to deploy capital primarily to fund the financing and integration of TWG and other ongoing capital needs of the business and excess capital to fund other investments and return capital to shareholders, subject to market conditions.

Acquisition of TWG

On May 31, 2018, the Company closed its acquisition of TWG. In connection with the acquisition of TWG, the equityholders of TWG Holdings received a total of 10,399,862 shares of Assurant common stock, which represented approximately 16.5% of the Company’s outstanding shares of common stock as of June 30, 2018, and $894.9 million in cash consideration. The cash consideration and repayment of $595.9 million of TWG's existing debt was financed through a combination of available cash and external financing, described below.

In March 2018, the Company issued 2,875,000 shares of its 6.50% Series D mandatory convertible preferred stock (“MCPS”), with a par value of $1.00 per share at a public offering price of $100.00 per share. Each outstanding share of MCPS will convert automatically on March 15, 2021 into between 0.9354 and 1.1225 shares of common stock, subject to customary anti-dilution adjustments. 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. The first dividend of $1.6792 per share of the MCPS, or $4.8 million in total, was paid in cash on June 15, 2018. Each subsequent dividend is expected to be $1.6250 per share of the MCPS.

In March 2018, the Company issued three series of senior notes with an aggregate principal amount of $900.0 million. The first series of senior notes is $300.0 million in principal amount, bears floating interest rate equal to three-month LIBOR plus 1.25% and is payable in a single installment due March 2021 (the “2021 Senior Notes”). The second series is $300.0 million in principal amount, bears interest at 4.20% per year, is payable in a single installment due September 2023 and was issued at a 0.233% discount (the “2023 Senior Notes”). The third series is $300.0 million in principal amount, bears interest at 4.90% per year, is payable in a single installment due March 2028 and was issued at a 0.383% discount (the “2028 Senior Notes”). At any time in whole or from time to time in part, the Company may redeem the 2021 Senior Notes on or after March 2019, the 2023 Senior Notes prior to August 2023 and the 2028 Senior Notes prior to December 2027.

In March 2018, the Company issued subordinated notes due March 2048 with a principal amount of $400.0 million (the “Subordinated Notes” and, together with the 2021 Senior Notes, 2023 Senior Notes and the 2028 Senior Notes, the “Notes”) which bear interest from March 2018 to March 2028, at an annual rate of 7.00%. The Subordinated Notes will bear interest at an annual rate equal to three-month LIBOR plus 4.135%, beginning in June 2028. The Company may redeem the Subordinated Notes, in whole but not in part, at any time on or after March 27, 2028 and prior to maturity at a redemption price set forth in the indenture, dated as of March 27, 2018 (the "Subordinated Notes Indenture"). At any time prior to March 2028, the Subordinated Notes will be redeemable in whole but not in part after the occurrence of a tax event, rating agency event or regulatory capital event as defined in the Subordinated Notes Indenture.

In March and May 2018, the commitments under the Company's senior unsecured bridge loan facility and senior unsecured term loan facility were terminated, respectively.

For additional information regarding the TWG acquisition, please see Note 4 to the ~~$86.0 received~~Consolidated Financial Statements and for additional information regarding the Notes and the MCPS, see Notes 12 and 15 in ~~Six Months 2017, we also expect approximately $14.0~~the Consolidated Financial Statements included elsewhere in ~~dividends from legal entities associated with~~ this Report.

Assurant ~~Health and AEB, subject to regulatory approval.~~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 ~~(“ALM”)~~ 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. Sensitivity testing of significant liability assumptions and new business projections is also performed.

Our liabilities generally have limited policyholder optionality, which means that the timing of payments is 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 our revolving credit facility. In addition, on January 22, 2018, we ~~have~~ 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 anany additional 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 ~~$0.53~~$0.56 per common share on June ~~20, 2017~~19, 2018 to stockholders of record as of May ~~30, 2017.~~29, 2018. On July 12, 2018, the Board declared a quarterly dividend of $0.56 per share of common stock payable on September 18, 2018 to stockholders of record as of the close of business on August 27, 2018 and a quarterly dividend of $1.6250 per share of MCPS payable on September 17, 2018 to stockholders of record as of the close of business on September 1, 2018. Any determination to pay future dividends will be at the discretion of our Board of Directors and will be dependent upon: our subsidiaries’ payments of dividends and/or other statutorily permissible payments to us; our results of operations and cash flows; our financial position and capital requirements; general business conditions; legal, tax, regulatory and contractual restrictions on the payment of ~~dividends;~~dividends (including under the terms of our outstanding MCPS); and other factors our Board of Directors deems relevant.

During the six months ended June 30, ~~2017, we repurchased 2,209,636 shares~~2018, there were no repurchases of our outstanding common ~~stock at a cost of $216.3, exclusive of commissions.~~stock. but the Company began to repurchase shares in July 2018. As of June 30, ~~2017, $466.6~~2018, $293.4 million remained under the current repurchase authorization. The timing and the amount of future repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factors.

Management believes the Company will have sufficient liquidity to satisfy its needs over the next 12twelve months, including the ability to pay interest on our senior and subordinated notes and dividends on our common and preferred shares.

Retirement and Other Employee Benefits

For information on our retirement and other employee benefits, see Note 1417 to the Consolidated Financial Statements, included elsewhere in this Report.

Cash Flows

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

The table below shows our ~~recent~~ net cash ~~flows:~~flows for the six months ended June 30, 2018 and 2017:


	For the Six Months Ended June 30,						For the Six Months Ended June 30,
Net cash provided by (used in):	2017			2016			2018			2017
Operating activities ~~(1)~~	$	4.8		$	(320.3	)	$	172.3		$	(0.3	)
Investing activities	3.7			745.6			(1,514.8		)	3.7
Financing activities	(192.3		)	(480.9		)	1,644.5			(192.3		)
Cash included in business classified as held for sale							(22.3		)	—
Effect of exchange rate changes on cash and cash equivalents							(22.8		)	5.1
Net change in cash	$	(183.8	)	$	(55.6	)	$	256.9		$	(183.8	)

~~____________________~~


~~(1)~~	~~Includes effect of exchange rate changes and the reclassification of assets held for sale on cash and cash equivalents.~~

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

Net cash provided by (used in) operating activities was ~~$4.8~~$172.3 million and ~~$(320.3)~~$(0.3) million for Six Months ~~2017~~2018 and Six Months ~~2016,~~2017, respectively. The increase in net cash ~~provided by~~from operating activities was primarily due to ~~prior year activity as Assurant Health was paying significant claims without a corresponding collection~~the absence of ~~premiums while in runoff. This is partially offset by the~~an $85.0 million payment made in Second Quarter 2017 related to the lender-placed market conduct examination ~~Settlement Agreements. Please see~~settlement agreements. Also contributing was an increase of sales in our Connected Living business, lower inventory purchases in our mobile business and $26.7 million increase in cash from the settlement of a series of derivative transactions that we entered into in 2017 to hedge interest rate risk related to the anticipated borrowings to be used for the TWG acquisition. These are partially offset by a $41.5 million payment of an accrued indemnification liability related to the previous sale of our general agency business and claim payments made, net of reinsurance, related to losses from 2017 reportable catastrophes.

Net cash (used in) provided by investing activities was $(1.51) billion and $3.7 million for Six Months 2018 and Six Months 2017, respectively. The increase in net cash used in investing activities was primarily due to an increase in cash used for the TWG acquisition. In Second Quarter 2018, we used $1.49 billion of cash to fund a portion of the $2.47 billion purchase price of the TWG acquisition (which was offset by TWG cash acquired of $277.3 million) compared to $125.0 million used in the first quarter of 2017 for the acquisition of Green Tree Insurance Agency, Inc. See Note 154 to the Consolidated Financial Statements for additional information. Also contributing to the decrease is $533.5 million of net cash used by our consolidated investment entities to purchase senior secured leveraged loans in connection with the planned formation of CLO structures. See Note 8 to the Consolidated Financial Statements for additional information. The remaining changes were due to the ongoing management of our investment portfolio.

Net cash provided by (used in) financing activities was $1.64 billion and $(192.3) million for Six Months 2018 and Six Months 2017, respectively. The increase in net cash provided by financing activities was primarily due to the financing related to the TWG acquisition. Net proceeds from the issuance of debt and preferred stock were $1.28 billion and $276.4 million, respectively. The Company used $350.0 million to replace the senior notes that matured during first quarter of 2018. Also contributing to the increase is $494.0 million of net cash provided by our consolidated investment entities mostly related to the issuance of CLO notes for CLO structures that were closed during the year and borrowings from the short-term warehouse facilities used to fund the planned formation of CLO structures. This was partially offset by the repayment of borrowings from the short-term warehouse facilities for CLO structures that closed during the year. See Note 8 to the Consolidated Financial Statements for additional information.

Net cash provided by investing activities was $3.7 and $745.6 for Six Months 2017 and Six Months 2016, respectively. The decrease in cash provided by investing activities was primarily due to the sale of AEB, mainly through reinsurance transactions, to Sun Life in the prior year. Also contributing to the decrease was the February 2017 acquisition of Green Tree Insurance Agency, Inc. This was partially offset by an increase in sales of fixed maturity securities.

Net cash used in financing activities was $192.3 and $480.9 for Six Months 2017 and Six Months 2016, respectively. The decrease in cash used in financing activities was primarily due to a decrease in the repurchase of our outstanding common stock and the proceeds from a short-term warehousing credit facility for purchasing senior secured leveraged loans. See Note 7 - Investments to the Consolidated Financial Statements for additional information.

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


	For the Six Months Ended June 30,				For the Six Months Ended June 30,
	2017		2016		2018		2017
Interest paid on debt	$	24.0	$	29.1	$	22.3	$	24.0
Common stock dividends	60.0		65.0		60.6		60.0
Preferred stock dividends					4.8		—
Total	$	84.0	$	94.1	$	87.7	$	84.0

Letters of Credit

In the normal course of business, we issue letters of credit for various purposes, including to support reinsurance agreements. These letters of credit are supported by commitments with financial institutions. We had ~~$18.3~~$16.9 million and ~~$17.2~~$18.1 million of letters of credit outstanding as of June 30, ~~2017~~2018 and December 31, ~~2016.~~2017.

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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our ~~2016~~2017 Annual Report on Form 10-K described our Quantitative and Qualitative Disclosures About Market Risk. There were no material changes to the assumptions or risks during Second Quarter ~~2017.~~

2018.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s management, with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) have evaluated the effectiveness of the Company’s disclosure controls and procedures pursuant to Rule 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of June 30, ~~2017.~~2018. They have concluded, except as noted below, that the Company’s disclosure controls and procedures are effective, and provide reasonable assurance that information the Company is required to disclose in its reports under the Exchange Act is recorded, processed, summarized and reported ~~accurately. They also have concluded that information that~~within the ~~Company is~~ required ~~to disclose is~~time periods and accumulated and communicated to the Company’s management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

On May 31, 2018, the Company completed its acquisition of TWG Holdings Limited and its subsidiaries (“TWG”). For the three and six months ended June 30, 2018, TWG represented about 11% and 6% of consolidated revenues, respectively, and 15% and 6% of net income attributable to common stockholders, respectively. At June 30, 2018, TWG represented 27% of total assets. The Company is in the process of evaluating internal control over financial reporting for TWG, and accordingly, has excluded TWG this quarter from its evaluation of internal control over financial reporting for purposes of its evaluation of disclosure controls and procedures.

Internal Control over Financial Reporting

~~During~~Other than the ~~quarter ended June 30, 2017, we made~~TWG acquisition discussed above, there have been no changes in our internal control over financial reporting pursuant to Rule 13a-15(f) or 15d-15(f) under the Exchange Act that have materially affected, or are reasonably likely to materially affect, our internal control over financial ~~reporting.~~reporting during the quarter ended June 30, 2018.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

The Company is involved in litigation in the ordinary course of business, both as a defendant and as a plaintiff, and may from time to time be subject to a variety of legal and regulatory actions relating to our current and past business operations, including regulatory examinations, investigations and inquiries. See Note 1518 to the Consolidated Financial Statements for a description of certain matters, which description is incorporated herein by reference. Although the Company cannot predict the outcome of any litigation, regulatory examinations or investigations, it is possible that the outcome of such matters could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, based on 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.

Item 1A. Risk Factors

Certain factors may have a material adverse effect on our business, financial condition and results of operations and you should carefully consider them. It is not possible to predict or identify all such factors. For discussion of potential risks or uncertainties affecting us, please refer to “Item 1A-Risk Factors” included in our ~~2016~~2017 Annual Report. There have been no material changes during Second Quarter ~~2017.~~2018.

Item ~~2. Unregistered Sales~~5. Other Information

On May 31, 2018, the Company filed a Current Report on Form 8-K disclosing the completion of ~~Equity Securities~~the TWG acquisition. Pursuant to General Instruction B.3 on Form 8-K, no additional financial statements of TWG and ~~Use of Proceeds~~pro forma financial information with respect to the TWG acquisitions are required in the Current Report on Form 8-K because "substantially the same" financial statements were previously filed as Exhibits 99.2 and 99.3, respectively, on Form 8-K, filed on March 6, 2018.

~~Repurchase of Equity Securities:~~

(Dollar amounts in millions, expect number of shares and per share amounts)
Period in 2017
Total
Number of
Shares Repurchased

Average Price
Paid Per Share

Total Number of Shares
Repurchased as Part of
Publicly Announced
Programs (1)

Approximate
Dollar Value of
Shares that
May Yet be
Repurchased
Under the
Programs (1)
January 1-31 378,136
$ 95.59
378,136
$ 646.8
February 1-29 248,000
96.58
248,000
622.8
March 1-31 457,000
97.80
457,000
578.1
April 1-30 398,600
95.09
398,600
540.3
May 1-31 375,900
100.73
375,900
502.4
June 1-30 352,000
101.68
352,000
466.6
Total 2,209,636
$ 97.91
2,209,636
$ 466.6

~~(1)~~

Shares purchased pursuant to the September 9, 2015 publicly announced share repurchase authorization of up to $750.0 of outstanding common stock, which was increased by an authorization announced on November 14, 2016 for the repurchase of up to an additional $600.0 of outstanding common stock. See Note 12 to the Consolidated Financial Statements for a description of certain matters, which is incorporated herein by reference.

Item 6. Exhibits

Pursuant to the rules and regulations of the SEC, the Company has filed or incorporated by reference certain agreements as exhibits to this quarterly Report on Form 10-Q. These agreements may contain representations and warranties by the parties. These representations and warranties have been made solely for the benefit of the other party or parties to such agreements and (i) may have been qualified by disclosures made to such other party or parties, (ii) were made only as of the date of such agreements or such other date(s) as may be specified in such agreements and are subject to more recent developments, which may not be fully reflected in the Company’s public disclosure, (iii) may reflect the allocation of risk among the parties to such agreements and (iv) may apply materiality standards different from what may be viewed as material to investors. Accordingly, these representations and warranties may not describe the Company’s actual state of affairs at the date hereof and should not be relied upon.

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. Exhibits are available upon request at the investor relations section of our website at www.assurant.com. Our website is not a part of this Report and is not incorporated by reference in this Report.



~~3.1~~2.1		~~Amended~~Letter Agreement, dated as of May 31, 2018, by and ~~Restated Certificate of Incorporation of the Registrant~~among Assurant, Inc., TWG Holdings Limited, TWG Re, Ltd. and Spartan Merger Sub, Ltd. (incorporated by reference from Exhibit ~~3.1~~2.2 to the ~~Registrant’s~~Registrant's Current Report on Form 8-K, originally filed on May ~~12, 2017)~~31, 2018).

~~3.2~~4.1		~~Amended~~Stockholder Rights Agreement, dated as of May 31, 2018, by and ~~Restated By-Laws of~~among Assurant, Inc. and the ~~Registrant~~stockholders party thereto (incorporated by reference from Exhibit ~~3.2~~4.1 to the ~~Registrant’s~~Registrant's Current Report on Form 8-K, originally filed on May ~~12, 2017)~~31, 2018).

4.2		Registration Rights Agreement, dated as of May 31, 2018, by and among Assurant, Inc. and the stockholders party thereto (incorporated by reference from Exhibit 4.2 to the Registrant's Current Report on Form 8-K, originally filed on May 31, 2018).

10.1		Assurant, Inc. ~~2017 Long Term Equity Incentive~~Amended and Restated Directors Compensation Plan, ~~(incorporated by reference from Exhibit 10.1 to the Registrant’s Form 8-K, originally filed on~~effective as of May ~~12, 2017).~~11, 2018.*

10.2		Form of Assurant, Inc. Restricted Stock Unit Award Agreement for ~~Time-based~~Performance-based Awards ~~for Directors,~~ under the Assurant, ~~Long,~~ Inc. 2017 Long Term Equity Incentive Plan ~~(incorporated by reference from Exhibit 10.1 to~~for the ~~Registrant’s Form S-8, originally filed on May 12, 2017).~~Management Committee, effective July 18, 2018.*

12.1		~~Computation~~Computations of Ratio of Consolidated Earnings to Fixed ~~Charges.~~Charges and Ratio of Consolidated Earnings to Combined Fixed Charges and Preferred Stock Dividends

31.1		Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer.

31.2		Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.

32.1		Certification of Chief Executive Officer of Assurant, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of Chief Financial Officer of Assurant, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101		The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, ~~2017,~~2018, 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 Statement of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.

*Management contract or compensatory ~~plan.~~plans

SIGNATURES

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




	ASSURANT, INC.

Date: August ~~3, 2017~~9, 2018	By:	/s/ ALAN B. COLBERG
	Name:	Alan B. Colberg
	Title:	President, Chief Executive Officer and Director

Date: August ~~3, 2017~~9, 2018	By:	/s/ RICHARD S. DZIADZIO
	Name:	Richard S. Dziadzio
	Title:	Executive Vice President, Chief Financial Officer and Treasurer

5267



	Six Months Ended June 30, 2016
				Total Corporate & Other
	Global Housing	Global Lifestyle	Global Preneed	Corporate & Other	Health		Total		Employee Benefits (4)	Consolidated
Revenues
Net earned premiums	920.9	1,462.4	31.8	—	24.4		24.4		178.0	2,617.5
Fees and other income	217.6	386.8	54.2	9.8	13.4		23.2		4.2	686.0
Net investment income	36.2	53.2	124.0	18.9	5.9		24.8		17.3	255.5
Net realized gains on investments (2)	—	—	—	183.3	—		183.3		—	183.3
Amortization of deferred gains and gains on disposal of businesses (3)	—	—	—	173.4	—		173.4		—	173.4
Gain on pension plan curtailment	—	—	—	29.6	—		29.6		—	29.6
Total revenues	1,174.7	1,902.4	210.0	415.0	43.7		458.7		199.5	3,945.3
Benefits, losses and expenses
Policyholder benefits (1)	382.2	323.1	125.9	—	(5.0	)	(5.0	)	118.4	944.6
Amortization of deferred acquisition costs and value of business acquired	119.1	520.5	31.6	—	—		—		5.8	677.0
Underwriting, general and administrative expenses	473.3	950.3	26.8	121.3	90.7		212.0		58.5	1,720.9
Interest expense	—	—	—	29.7	—		29.7		—	29.7
Total benefits, losses and expenses	974.6	1,793.9	184.3	151.0	85.7		236.7		182.7	3,372.2
Segment income (loss) before provision (benefit) for income tax	200.1	108.5	25.7	264.0	(42.0	)	222.0		16.8	573.1
Provision (benefit) for income taxes	66.8	17.0	8.7	94.0	(9.4	)	84.6		6.3	183.4
Segment income (loss) after tax	133.3	91.5	17.0	170.0	(32.6	)	137.4		10.5
Net income										389.7



	Three Months Ended June 30, 2017
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Unamortized net (losses) on Pension Plans			Accumulated other comprehensive income
Balance at March 31, 2017	$	(300.3	)	$	491.7		$	20.3		$	(63.4	)	$	148.3
Change in accumulated other comprehensive income (loss) before reclassifications	15.7			80.9			(1.5		)	—			95.1
Amounts reclassified from accumulated other comprehensive income	—			(7.0		)	—			0.5			(6.5		)
Net current-period other comprehensive income (loss)	15.7			73.9			(1.5		)	0.5			88.6
Balance at June 30, 2017	$	(284.6	)	$	565.6		$	18.8		$	(62.9	)	$	236.9

	Three Months Ended June 30, 2016
	Foreign currency translation adjustment			Unrealized gains on securities			OTTI			Unamortized net (losses) on Pension Plans			Accumulated other comprehensive income
Balance at March 31, 2016	$	(258.9	)	$	525.3		$	21.1		$	(62.4	)	$	225.1
Change in accumulated other comprehensive (loss) income before reclassifications	(14.5		)	120.3			0.2			—			106.0
Amounts reclassified from accumulated other comprehensive income	—			(4.4		)	—			0.4			(4.0		)
Net current-period other comprehensive (loss) income	(14.5		)	115.9			0.2			0.4			102.0
Balance at June 30, 2016	$	(273.4	)	$	641.2		$	21.3		$	(62.0	)	$	327.1



(Dollar amounts in millions, expect number of shares and per share amounts)
Period in 2017	Total Number of Shares Repurchased	Average Price Paid Per Share		Total Number of Shares Repurchased as Part of Publicly Announced Programs (1)	Approximate Dollar Value of Shares that May Yet be Repurchased Under the Programs (1)
January 1-31	378,136	$	95.59	378,136	$	646.8
February 1-29	248,000	96.58		248,000	622.8
March 1-31	457,000	97.80		457,000	578.1
April 1-30	398,600	95.09		398,600	540.3
May 1-31	375,900	100.73		375,900	502.4
June 1-30	352,000	101.68		352,000	466.6
Total	2,209,636	$	97.91	2,209,636	$	466.6