Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 11, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-31978 | ||
Entity Registrant Name | Assurant, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 39-1126612 | ||
Entity Address, Address Line One | 55 Broadway | ||
Entity Address, Address Line Two | Suite 2901 | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10006 | ||
City Area Code | 212 | ||
Local Phone Number | 859-7000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,220 | ||
Entity Common Stock, Shares Outstanding | 55,161,629 | ||
Entity Central Index Key | 0001267238 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Documents Incorporated by Reference | Documents Incorporated by Reference Certain information contained in the definitive proxy statement for the registrant’s 2022 annual meeting of stockholders, which will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates, is incorporated by reference into Part III hereof. | ||
Common Stock | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | AIZ | ||
Security Exchange Name | NYSE | ||
Subordinated Notes | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | 5.25% Subordinated Notes due 2061 | ||
Trading Symbol | AIZN | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | New York, New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Investments: | |||
Fixed maturity securities available for sale, at fair value (net of allowances for credit losses of zero and $1.2 at December 31, 2021 and 2020, respectively; amortized cost – $6,903.9 and $6,245.8 at December 31, 2021 and 2020, respectively) | $ 7,215.3 | $ 6,815.5 | |
Equity securities at fair value | 445.7 | 290.2 | |
Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $1.1 and $1.6 at December 31, 2021 and 2020, respectively) | 256.5 | 138.3 | |
Short-term investments | 247.8 | 292 | |
Other investments (net of allowances for credit losses of zero and $1.4 at December 31, 2021 and 2020, respectively) | 506.3 | 686.8 | |
Total investments | 8,671.6 | 8,222.8 | |
Cash and cash equivalents | 2,040.8 | 2,207.6 | |
Premiums and accounts receivable (net of allowances for credit losses of $9.4 and $13.3 at December 31, 2021 and 2020, respectively) | 1,942.5 | 1,548.9 | |
Reinsurance recoverables (net of allowances for credit losses of $5.0 and $24.6 at December 31, 2021 and 2020, respectively) | 6,178.9 | 6,605.4 | |
Accrued investment income | 62.1 | 67 | |
Deferred acquisition costs | 8,811 | 7,388 | |
Property and equipment, net | 561.4 | 446.1 | |
Goodwill | 2,571.6 | 2,589.3 | |
Value of business acquired | 583.4 | 1,152.2 | |
Other intangible assets, net | 719.2 | 696.2 | |
Other assets (net of allowances for credit losses of $2.5 and $1.8 at December 31, 2021 and 2020, respectively) | 680.2 | 496.2 | |
Assets held in separate accounts | 11.9 | 11.5 | |
Assets held for sale (Note 4) | 1,076.9 | 13,218.7 | |
Total assets | 33,911.5 | 44,649.9 | |
Liabilities | |||
Future policy benefits and expenses | 413.2 | 1,358.5 | |
Unearned premiums | 18,623.7 | 17,293.1 | |
Claims and benefits payable | 1,595.9 | 1,610.3 | |
Commissions payable | 692.7 | 699.1 | |
Reinsurance balances payable | 420.4 | 359.3 | |
Funds held under reinsurance | 364.2 | 358.6 | |
Accounts payable and other liabilities | 3,032.5 | 2,640.5 | |
Debt | 2,202.5 | 2,252.9 | |
Liabilities related to separate accounts | 11.9 | 11.5 | |
Liabilities held for sale (Note 4) | 1,064.8 | 12,111.3 | |
Total liabilities | 28,421.8 | 38,695.1 | |
Commitments and contingencies (Note 27) | |||
Stockholders’ equity | |||
6.50% Series D mandatory convertible preferred stock, par value $1.00 per share, zero and 2,875,000 shares authorized, issued and outstanding at December 31, 2021 and 2020, respectively (1) | [1] | 0 | 2.9 |
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 58,050,202 and 62,967,808 shares issued and 55,754,113 and 57,967,808 shares outstanding at December 31, 2021 and 2020, respectively | 0.7 | 0.6 | |
Additional paid-in capital | 1,695 | 1,956.8 | |
Retained earnings | 4,066.8 | 3,548.7 | |
Accumulated other comprehensive (loss) income | (150) | 709.8 | |
Treasury stock, at cost; 2,296,089 and 5,000,000 shares at December 31, 2021 and 2020, respectively | (122.8) | (267.4) | |
Total Assurant, Inc. stockholders’ equity | 5,489.7 | 5,951.4 | |
Non-controlling interest | 0 | 3.4 | |
Total equity | 5,489.7 | 5,954.8 | |
Total liabilities and equity | $ 33,911.5 | $ 44,649.9 | |
[1] | Each outstanding share of mandatory convertible preferred stock converted to common stock in March 2021. Refer to Note 20 for further information. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fixed maturity securities, allowances for credit losses | $ 0 | $ (1.2) |
Fixed maturity securities available for sale, amortized cost | 6,903.9 | |
Commercial mortgage loans on real estate, allowance for credit losses | 1.1 | 1.6 |
Other investments, allowance for credit losses | 0 | 1.4 |
Premiums and accounts receivable, allowance for credit losses | 9.4 | 13.3 |
Reinsurance recoverable, allowance for credit losses | 5 | 24.6 |
Other assets, allowance for credit losses | $ 2.5 | $ 1.8 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock shares issued (in shares) | 58,050,202 | 62,967,808 |
Common stock, shares outstanding (in shares) | 55,754,113 | 57,967,808 |
Treasury stock, at cost (in shares) | 2,296,089 | 5,000,000 |
Series D Preferred Stock | ||
Preferred stock, dividend rate | 6.50% | 6.50% |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 0 | 2,875,000 |
Preferred stock, shares issued (in shares) | 0 | 2,875,000 |
Preferred stock, shares outstanding (in shares) | 0 | 2,875,000 |
Fixed Maturities | ||
Fixed maturity securities, allowances for credit losses | $ 0 | $ (1.2) |
Fixed maturity securities available for sale, amortized cost | $ 6,903.9 | $ 6,245.8 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||
Net earned premiums | $ 8,572.1 | $ 8,275.8 | $ 7,958.8 |
Fees and other income | 1,172.9 | 1,042.3 | 1,170.1 |
Net investment income | 314.4 | 285.6 | 383.2 |
Net realized gains (losses) on investments (including $0.2, $(19.7) and $(2.1) of impairment-related gains (losses) for the years ended December 31, 2021, 2020 and 2019, respectively) and fair value changes to equity securities | 128.2 | (8.2) | 57 |
Total revenues | 10,187.6 | 9,595.5 | 9,569.1 |
Benefits, losses and expenses | |||
Policyholder benefits | 2,195.7 | 2,264.9 | 2,385.7 |
Amortization of deferred acquisition costs and value of business acquired | 3,835.8 | 3,591.5 | 3,237.2 |
Underwriting, general and administrative expenses | 3,240.6 | 3,047.9 | 3,186.5 |
Iké net losses (Note 4) | 0 | 5.9 | 163 |
Interest expense | 111.8 | 104.5 | 110.6 |
Loss on extinguishment of debt (Note 19) | 20.7 | 0 | 31.4 |
Total benefits, losses and expenses | 9,404.6 | 9,014.7 | 9,114.4 |
Income from continuing operations before income tax expense | 783 | 580.8 | 454.7 |
Income tax expense | 169.5 | 60.4 | 148.3 |
Net income from continuing operations | 613.5 | 520.4 | 306.4 |
Net income from discontinued operations | 758.9 | (77.7) | 80.4 |
Net income | 1,372.4 | 442.7 | 386.8 |
Less: Net income attributable to non-controlling interest | 0 | (0.9) | (4.2) |
Net income attributable to stockholders | 1,372.4 | 441.8 | 382.6 |
Less: Preferred stock dividends | (4.7) | (18.7) | (18.7) |
Net income (loss) attributable to common stockholders, basic | 1,367.7 | 423.1 | 363.9 |
Net income (loss) attributable to common stockholders, diluted | $ 1,367.7 | $ 423.1 | $ 363.9 |
Basic | |||
Net income from continuing operations (in dollars per share) | $ 10.29 | $ 8.33 | $ 4.58 |
Net income (loss) from discontinued operations (in dollars per share) | 12.84 | (1.29) | 1.29 |
Net income attributable to common stockholders (in dollars per share) | 23.13 | 7.04 | 5.87 |
Diluted | |||
Net income from continuing operations (in dollars per share) | 10.20 | 8.22 | 4.56 |
Net income (loss) from discontinuing operations (in dollars per share) | 12.63 | (1.23) | 1.28 |
Net income attributable to common stockholders (in dollars per share) | $ 22.83 | $ 6.99 | $ 5.84 |
Share Data | |||
Weighted average shares outstanding used in basic per share calculations (in shares) | 59,140,861 | 60,114,670 | 61,942,969 |
Plus: Dilutive securities (in shares) | 982,833 | 3,065,268 | 370,499 |
Weighted average shares used in diluted earnings per share calculations (in shares) | 60,123,694 | 63,179,938 | 62,313,468 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Investment impairment losses included in net realized gains (losses) | $ 0.2 | $ (19.7) | $ (2.1) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,372.4 | $ 442.7 | $ 386.8 | |
Other comprehensive (loss) income: | ||||
Change in unrealized gains on securities, net of taxes of $233.7, $(64.0) and $(153.2) for the years ended December 31, 2021, 2020 and 2019, respectively | [1] | (841) | 225.6 | 555.9 |
Change in unrealized gains on derivative transactions, net of taxes of $0.7, $0.6 and $0.4 for the years ended December 31, 2021, 2020 and 2019, respectively | (2.3) | (2.4) | (1.3) | |
Change in foreign currency translation, net of taxes of $3.1, $3.8 and $(1.1) for the years ended December 31, 2021, 2020 and 2019, respectively | (31.3) | 63.3 | 16.7 | |
Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, net of taxes of $(3.8), $(3.2) and $1.1 for the years ended December 31, 2021, 2020 and 2019, respectively | [2] | 14.8 | 11.8 | (4.4) |
Total other comprehensive (loss) income | (859.8) | 298.3 | 566.9 | |
Total comprehensive income | 512.6 | 741 | 953.7 | |
Less: Comprehensive income attributable to non-controlling interest | 0 | (0.9) | (4.2) | |
Total comprehensive income attributable to common stockholders | $ 512.6 | $ 740.1 | $ 949.5 | |
[1] | The year ended December 31, 2021 includes $0.3 million of foreign currency translation adjustments and $605.7 million of net unrealized gains on investments, for a total $606.0 million, net of taxes, that were recognized through income from discontinued operations upon the sale of the disposed Global Preneed business. Refer to Note 4 for further information. | |||
[2] | Change in year ended December 31, 2020 includes the prior service credit resulting from the February 2020 amendment of the Retirement Health Benefits Plan. Refer to Note 24 for further information. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Statement of Comprehensive Income [Abstract] | |
Change in unrealized gains on securities, tax | $ 233.7 |
Change in unrealized gains on derivative transactions, tax | 0.7 |
Change in foreign currency translation, tax | 3.1 |
Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, tax | (3.8) |
Discontinued Operations, Held-for-sale | Global Preneed | |
Gain on disposition of business, recognized from AOCI, net of tax | 606 |
Discontinued Operations, Held-for-sale | Global Preneed | Foreign currency translation adjustment | |
Gain on disposition of business, recognized from AOCI, net of tax | 0.3 |
Discontinued Operations, Held-for-sale | Global Preneed | Net unrealized gains on securities | |
Gain on disposition of business, recognized from AOCI, net of tax | $ 605.7 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Non-controlling Interest |
Beginning balance at Dec. 31, 2018 | $ 5,133.9 | $ 2.9 | $ 1.6 | $ 4,495.6 | $ 5,759.7 | $ (155.4) | $ (4,992.4) | $ 21.9 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock plan exercises | 7.1 | 7.1 | ||||||||
Stock plan compensation expense | 55.9 | 55.9 | ||||||||
Common stock dividends | (151.4) | (151.4) | ||||||||
Acquisition of common stock | (295.8) | (20.9) | (274.9) | |||||||
Net income | 386.8 | 382.6 | 4.2 | |||||||
Preferred stock dividends | (18.7) | (18.7) | ||||||||
Change in equity of non-controlling interest | (2.6) | (5.8) | 3.2 | |||||||
Other comprehensive income (loss) | 566.9 | 566.9 | ||||||||
Ending balance at Dec. 31, 2019 | $ 5,682.1 | $ (20.4) | 2.9 | 1.6 | 4,537.7 | 5,966.4 | $ (20.4) | 411.5 | (5,267.3) | 29.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||||||||
Stock plan exercises | $ 8.6 | 8.6 | ||||||||
Stock plan compensation expense | 57.9 | 57.9 | ||||||||
Common stock dividends | (154.6) | (154.6) | ||||||||
Acquisition of common stock | (320.1) | (20.3) | (299.8) | |||||||
Retirement of treasury stock | 0 | (1) | (2,626.4) | (2,672.3) | 5,299.7 | |||||
Net income | 442.7 | 441.8 | 0.9 | |||||||
Preferred stock dividends | (18.7) | (18.7) | ||||||||
Change in equity of non-controlling interest | (18.7) | 6.5 | (25.2) | |||||||
Acquisition of non-controlling interests | (2.3) | (0.7) | (1.6) | |||||||
Other comprehensive income (loss) | 298.3 | 298.3 | ||||||||
Ending balance at Dec. 31, 2020 | 5,954.8 | 2.9 | 0.6 | 1,956.8 | 3,548.7 | 709.8 | (267.4) | 3.4 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock plan exercises | 11.8 | 11.8 | ||||||||
Stock plan compensation expense | 66.7 | 66.7 | ||||||||
Common stock dividends | (157.6) | (157.6) | ||||||||
Acquisition of common stock | (873) | (181.6) | (691.4) | 0 | ||||||
Net income | 1,372.4 | 1,372.4 | ||||||||
Preferred stock conversion | 0 | (2.9) | 0.1 | (141.8) | 144.6 | |||||
Preferred stock dividends | (4.7) | (4.7) | ||||||||
Change in equity of non-controlling interest | (4) | (0.6) | (3.4) | |||||||
Acquisition of non-controlling interests | (16.9) | (16.9) | ||||||||
Other comprehensive income (loss) | (859.8) | (859.8) | ||||||||
Ending balance at Dec. 31, 2021 | $ 5,489.7 | $ 0 | $ 0.7 | $ 1,695 | $ 4,066.8 | $ (150) | $ (122.8) | $ 0 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock dividends (in dollars per share) | $ 2.66 | $ 2.55 | $ 2.43 |
Preferred stock dividends (in dollars per share) | $ 1.63 | $ 6.50 | $ 6.52 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating activities | ||||
Net income attributable to stockholders | $ 1,372.4 | $ 441.8 | $ 382.6 | |
Noncash revenues, expenses, gains and losses included in income: | ||||
(Income) loss from discontinued operations | [1] | (758.9) | 77.7 | (80.4) |
Deferred tax expense | 131.7 | 202.4 | 100.8 | |
Depreciation and amortization | 171.6 | 142.3 | 125.5 | |
Net realized (gains) losses on investments, including impairment losses | (128.2) | 8.2 | (57) | |
Loss on extinguishment of debt | 20.7 | 0 | 31.4 | |
Net loss on sales of businesses and buildings | 0 | 0 | 17 | |
Stock based compensation expense | 66.7 | 57.9 | 55.9 | |
Other intangible asset impairment | 1.7 | 2.7 | 16.2 | |
Iké related charges, net of derivative gains | [2] | 0 | 1.7 | 163 |
Changes in operating assets and liabilities: | ||||
Insurance policy reserves and expenses | 1,454.6 | 697.3 | 1,304.5 | |
Premiums and accounts receivable | (424.2) | 194 | (58.5) | |
Commissions payable | (43.3) | 171.3 | 102.6 | |
Reinsurance recoverable | (445.5) | (232.3) | (404.3) | |
Reinsurance balance payable | 81.6 | 2.3 | 25.7 | |
Funds withheld under reinsurance | 6.5 | 37.9 | 44.6 | |
Deferred acquisition costs and value of business acquired | [3] | (879.1) | (456.6) | (780.7) |
Taxes receivable | [4] | (157.1) | 24.4 | 14.1 |
Other assets and other liabilities | 163.2 | (260.9) | 105 | |
Other | (3.9) | 2.2 | 20.3 | |
Net cash provided by operating activities - discontinued operations | 151.2 | 227.7 | 285.1 | |
Net cash provided by operating activities | 781.7 | 1,342 | 1,413.4 | |
Sales of: | ||||
Fixed maturity securities available for sale | 1,361.8 | 515.4 | 1,729.8 | |
Equity securities | 30.4 | 23.8 | 77.4 | |
Other invested assets | 141.1 | 113.1 | 128.9 | |
Subsidiaries, net of cash transferred | [1] | 1,315.6 | 0 | 0 |
Iké foreign currency hedge | [2] | 0 | 22 | 0 |
Maturities, calls, prepayments, and scheduled redemption of: | ||||
Fixed maturity securities available for sale | 971 | 804.8 | 541.2 | |
Commercial mortgage loans on real estate | 19.8 | 26.2 | 18.1 | |
Purchases of: | ||||
Fixed maturity securities available for sale | (3,007.7) | (1,503.9) | (2,183) | |
Equity securities | (57.7) | (31.5) | (73.2) | |
Commercial mortgage loans on real estate | (133.9) | (5.5) | 0 | |
Other invested assets | [5] | (71.6) | (99.5) | (50.8) |
Property and equipment and other | (187.4) | (121.2) | (110.3) | |
Subsidiary, net of cash transferred | [6] | (16.6) | (458.6) | (7.6) |
Net cash outflow related to sale of interests in Iké and termination of put/call obligations | [2] | 0 | (73.3) | 0 |
Consolidated investment entities: | ||||
Purchases of investments | 0 | (353.1) | (1,311) | |
Sale of investments | 0 | 550.2 | 935.1 | |
Change in short-term investments | (65.2) | 68.8 | (39) | |
Other | 3.2 | 2.9 | 7.5 | |
Net cash used in investing activities - discontinued operations | (145.2) | (215.8) | (282.9) | |
Net cash provided by (used in) investing activities | 157.6 | (735.2) | (619.8) | |
Financing activities | ||||
Issuance of debt, net of issuance costs (Note 19) | 347.2 | 243.7 | 346.7 | |
Repayment of debt, including tender offer premium (Note 19) | (419.8) | 0 | (379.6) | |
Issuance of collateralized loan obligation notes | 0 | 0 | 398.6 | |
Issuance of debt for consolidated investment entities | 0 | 0 | 189.1 | |
Repayment of debt for consolidated investment entities | 0 | (1.2) | (319.3) | |
Borrowing under secured revolving credit facility | 0 | 200 | 0 | |
Payments on secured revolving credit facility | 0 | (200) | 0 | |
Acquisition of common stock | (839.3) | (297) | (271.8) | |
Common stock dividends paid | (157.6) | (154.6) | (151.4) | |
Preferred stock dividends paid | (4.7) | (18.7) | (18.7) | |
Employee stock purchases and withholdings | (15.6) | (10.3) | 19.7 | |
Proceeds from transfer of rights to ACA recoverables (Note 4) | 0 | 0 | 26.7 | |
Proceeds repaid on transfer of rights to ACA recoverable | 0 | (26.7) | 0 | |
Other | [7] | 0 | 0 | (19.2) |
Net cash (used in) provided by financing activities - discontinued operations | 0 | 0 | 0 | |
Net cash (used in) provided by financing activities | (1,089.8) | (264.8) | (179.2) | |
Effect of exchange rate changes on cash and cash equivalents - continuing operations | (23.5) | 19.4 | (1.6) | |
Effect of exchange rate changes on cash and cash equivalents - discontinued operations | 0.2 | 0.1 | 0.3 | |
Effect of exchange rate changes on cash and cash equivalents | (23.3) | 19.5 | (1.3) | |
Change in cash and cash equivalents | (173.8) | 361.5 | 613.1 | |
Cash and cash equivalents at beginning of period | 2,228.6 | 1,867.1 | 1,254 | |
Cash and cash equivalents at end of period | 2,054.8 | 2,228.6 | 1,867.1 | |
Less: Cash reclassified as held for sale | [8] | (14) | 0 | 0 |
Less: Cash and cash equivalents of discontinued operations at end of period | 0 | 21 | 9 | |
Cash and cash equivalents of continuing operations at end of period | 2,040.8 | 2,207.6 | 1,858.1 | |
Supplemental information: | ||||
Income taxes paid | 221.1 | 98.5 | 93.1 | |
Interest paid on debt | $ 109.8 | $ 103.6 | $ 103.2 | |
[1] | Relates to the sale of the disposed Global Preneed business, net of $27.3 million of cash transferred. For additional information, refer to Note 4. | |||
[2] | Relates to Iké disposition and related financing. Refer to Note 4 for additional information. | |||
[3] | Refer to Notes 13 and 16 for further detail on amortization of DAC and VOBA, respectively. | |||
[4] | The year ended December 31, 2020 includes receipt of $204.9 million federal tax refund, which includes interest, related to the ability to carryback net operating losses to prior periods under the CARES Act. Refer to Note 12 for additional information. | |||
[5] | The year ended December 31, 2020 includes loan to Iké Grupo. Refer to Note 4 for additional information. | |||
[6] | Amounts for the year ended December 31, 2020 primarily consists of $135.8 million in cash consideration for the acquisition of American Financial & Automotive Services, Inc. (“AFAS”), net of $39.6 million of cash acquired, $276.8 million in cash consideration for the acquisition of HYLA Mobile, Inc. (“HYLA”) net of $72.0 million of cash acquired, and $46.0 million in total cash consideration, net of $23.9 million of cash acquired for four business acquisitions within the Global Lifestyle business. Refer to Note 3 for additional information. | |||
[7] | Amounts for the year ended December 31, 2019 relates to the settlement of a contingent payable from the Company’s acquisition of certain renewal rights in a prior year. | |||
[8] | Relates to the held for sale of John Alden Life Insurance Company (“JALIC”), refer to Note 4 for further information. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($)acquisition | |
Proceeds from income tax refunds, CARES Act | $ 204.9 | |
Discontinued Operations, Held-for-sale | Global Preneed | ||
Business disposition, cash transferred | $ 27.3 | |
American Financial & Automotive Services | ||
Aggregate cash consideration | 135.8 | |
Cash acquired from acquisition | 39.6 | |
HYLA | ||
Aggregate cash consideration | 276.8 | |
Cash acquired from acquisition | 72 | |
Strategic Acquisition In Global Lifestyle Business | ||
Aggregate cash consideration | 46 | |
Cash acquired from acquisition | $ 23.9 | |
Business acquisition, number of acquisitions | acquisition | 4 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Assurant, Inc. (the “Company”) is a global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases. The Company partners with leading brands to develop innovative products and services and to deliver enhanced customer experience. The Company operates in North America, Latin America, Europe and Asia Pacific through two operating segments: Global Lifestyle and Global Housing. Through its Global Lifestyle segment, the Company provides mobile device solutions and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit protection and other insurance products (referred to as “Global Financial Services and Other”). Through its Global Housing segment, the Company provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”). The businesses previously reported as the Global Preneed segment, through which the Company provided pre-funded funeral insurance, final need insurance and related services, as well as certain businesses previously disposed of through reinsurance, were sold in August 2021. Refer to Note 4 for additional information on the sale.The Company’s common stock is traded on the New York Stock Exchange under the symbol “AIZ.” |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Amounts are presented in United States of America (“U.S.”) Dollars and all amounts are in millions, except for number of shares, per share amounts and number of securities. Certain prior period amounts have been reclassified to reflect the impacts of businesses held for sale and discontinued operations as further summarized in Note 4. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its controlled subsidiaries, generally through a greater than 50% ownership of voting rights and voting interests. Equity investments in entities that the Company does not consolidate, but where the Company has significant influence or where the Company has more than a minor influence over the entity’s operating and financial policies, are accounted for under the equity method. Non-controlling interest consists of equity that is not attributable directly or indirectly to the Company. All material inter-company transactions and balances are eliminated in consolidation. In order to facilitate the Company’s closing process, financial information from certain foreign subsidiaries and affiliates is reported on a one to three-month lag. Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts. The items affected by the use of estimates include but are not limited to, investments, reinsurance recoverables, premium and accounts receivables, deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred income taxes and associated valuation allowances, goodwill, intangible assets, future policy benefits and expenses, unearned premiums, claims and benefits payable, deferred gain on disposal of businesses, pension and post-retirement liabilities and commitments and contingencies. The estimates are sensitive to market conditions, investment yields, mortality, morbidity, commissions and other acquisition expenses, policyholder behavior and other factors. Actual results could differ from the estimates recorded. The Company believes all amounts reported are reasonable and adequate. Fair Value The Company uses an exit price for its fair value measurements. An exit price is defined as the amount received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In measuring fair value, the Company gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. See Note 10 for additional information. Foreign Currency For foreign affiliates where the local currency is the functional currency, unrealized foreign currency translation gains and losses net of deferred income taxes have been reflected in accumulated other comprehensive income (“AOCI”). For Canada, Argentina, Brazil, Chile and Mexico, deferred taxes have not been provided for unrealized currency translation gains and losses since the Company intends to indefinitely reinvest the earnings in these other jurisdictions. Transaction gains and losses on assets and liabilities denominated in foreign currencies are recorded in underwriting, general and administrative expenses in the consolidated statements of operations during the period in which they occur. 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, as a result of the classification of Argentina’s economy as highly inflationary, the functional currency of our Argentina subsidiaries was changed from the local currency to U.S. Dollars. The subsidiaries’ non-U.S. Dollar denominated monetary assets and liabilities have been subject to remeasurement since July 1, 2018. For the years ended December 31, 2021, 2020 and 2019, the remeasurement resulted in $7.0 million, $7.5 million and $18.4 million, respectively, of net pre-tax losses which the Company classified within underwriting, general and administrative expenses in the consolidated statements of operations. Based on the relative size of the subsidiaries’ operations and net assets subject to remeasurement, the Company does not anticipate the ongoing remeasurement to have a material impact on the Company’s results of operations or financial condition. Variable Interest Entities The Company may enter into agreements with other entities that are deemed to be variable interest entities (“VIEs”). Entities that do 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 are referred to as VIEs. A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (the “primary beneficiary”) as a result of having both the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, the nature of the VIE’s operations and purpose and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company only holds non-consolidated VIEs as of December 31, 2021 and 2020. Prior to the deconsolidation in the third quarter of 2020, the consolidated collateralized loan obligation (“CLO”) entities met the definition of a collateralized financing entity. Refer to Note 4 for additional information on the sale of the Company’s CLO asset management platform. Investments Fixed maturity securities are classified as available-for-sale as defined in the investments guidance and are reported at fair value. If the fair value is higher than the amortized cost for fixed maturity securities, the excess is an unrealized gain; and, if lower than amortized cost, the difference is an unrealized loss. Net unrealized gains and losses on securities classified as available-for-sale, less deferred income taxes, are included in AOCI. Effective January 1, 2020, the Company adopted certain changes to the accounting and reporting for impairments involving available for sale securities, including presentation of credit-related impairments as an allowance rather than as an other-than-temporary impairment, eliminating duration of unrealized losses as a consideration when assessing recognition of an impairment, recognition of credit impairments upon purchase of securities as applicable, and requiring reversals of previously recognized credit-related impairments when applicable. For available for sale fixed maturity securities in an unrealized loss position for which the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than the amortized cost basis, changes to the credit rating of the security by a nationally recognized statistical ratings organization and any adverse conditions specifically related to the security, industry or geographic area, among other factors. If this assessment indicates a potential credit loss may exist, the present value of cash flows expected to be collected are compared to the security’s amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit-related impairment exists, and a charge to income and an associated allowance for credit losses is recorded for the credit-related impairment. Any impairment not related to credit losses is recorded through other comprehensive income. The amount of the allowance for credit losses is limited to the amount by which fair value is less than the amortized cost basis. Upon recognizing a credit-related impairment, the cost basis of the security is not adjusted. Subsequent changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. For fixed maturities where the Company records a credit loss, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. Write-offs are charged against the allowance when management concludes the financial asset is uncollectible. For fixed maturities where the Company expects a recovery in value, the effective yield method is utilized, and the investment is amortized to par. For available for sale fixed maturity securities that the Company intends to sell, or for which it is more likely than not that the Company will be required to sell before recovery of its amortized cost basis, the entire impairment loss, or difference between the fair value and amortized cost basis of the security, is recognized in net realized gains (losses) on investments and fair value changes to equity securities. The new cost basis of the security is the previous amortized cost basis less the impairment recognized and is not adjusted for any subsequent recoveries in fair value. The Company reports receivables for accrued investment income separately from fixed maturities available for sale and elected not to measure allowances for credit losses for accrued investment income as uncollectible balances are written off in a timely manner. Equity securities that have readily determinable fair values are measured at fair value with changes in fair value recognized in net realized gains (losses) on investments and fair value changes to equity securities on the Company’s consolidated statements of operations. The Company has certain equity investments that do not have readily determinable fair values and the Company has elected the measurement alternative to carry such investments at cost, less impairment and to mark to fair value when observable prices in identical or similar investments from the same issuer occur. Equity securities accounted for under the measurement alternative are impaired if a qualitative assessment based upon several indicators such as earnings performance, offers to sell or purchase, ability to continue as a going concern and macroeconomic factors indicates the equity investment is impaired and the fair value of the investment is less than its carrying value. If a qualitative assessment indicates impairment, a quantitative analysis, which uses probability weighted potential outcomes, is performed to determine the amount of the impairment to be recognized that result in a fair value measurement. Equity securities accounted for under the measurement alternative are included within Other investments in the consolidated balance sheets. Commercial mortgage loans on real estate are reported at unpaid principal balances, adjusted for amortization of premium or discount, less any allowance for credit losses. The allowance for the Company’s commercial mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, utilizing a probability-of-default and loss given default methodologies, which incorporate various probability weighted economic scenarios. The probability of default is estimated using macroeconomic factors as well as individual loan characteristics, including loan-to-value (“LTV”) and debt service coverage ratios (“DSC”), loan term, collateral type, geography and underlying credit. The loss given default is driven primarily by the type and value of underlying collateral, and to a lesser extent by expected liquidation costs and time to recovery. Each loan is analyzed individually based on loan-specific data elements to estimate the expected loss and then aggregated. The Company places loans on nonaccrual status after 90 days of delinquent payments (unless the loans are secured and in the process of collection). A loan may be placed on nonaccrual status before this time if information is available that suggests collection is unlikely. The Company charges off loan and accrued interest balances that are deemed uncollectible. Charge offs are recorded to net income in the period deemed uncollectible. Refer to Note 5 for further details on the allowance for credit losses on commercial mortgage loans. Prior to January 1, 2020, the allowance for loan loss was based on management’s analysis of factors including actual loan loss experience, specific events based on geographical, political or economic conditions, industry experience, loan groupings that have probable and estimable losses and individually impaired loan loss analysis. A loan was considered individually impaired when it became probable that the Company would be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. Indicative factors of impairment included whether the loan was current, the value of the collateral and the financial position of the borrower. If a loan was individually impaired, the Company used one of the following valuation methods based on the individual loan’s facts and circumstances to measure the impairment amount: (1) the present value of expected future cash flows, (2) the loan’s observable market price, or (3) the fair value of collateral. Changes in the allowance for loan losses was recorded in net realized losses on investments, excluding other-than-temporary impairment (“OTTI”) losses. Short-term investments include securities and other investments with durations of one year or less, but greater than three months, between the date of purchase and maturity. These amounts are reported at cost or amortized cost, which approximates fair value. Other investments consist primarily of investments in joint ventures, partnerships, equity investments that do not have readily determinable fair values, invested assets associated with a modified coinsurance arrangement, invested assets associated with the Assurant Investment Plan (the “AIP”), the American Security Insurance Company Investment Plan (the “ASIC”) and the Assurant Deferred Compensation Plan (the “ADC”), as well as policy loans. The joint ventures and partnerships are valued according to the equity method of accounting. In applying the equity method, the Company uses financial information provided by the investee, generally on a three-month lag. The invested assets related to the modified coinsurance arrangement, the AIP, the ASIC and the ADC are classified as trading securities. Policy loans are reported at unpaid principal balances, which do not exceed the cash surrender value of the underlying policies. Realized gains and losses on sales of investments are recognized on the specific identification basis. Investment income is recorded as earned and reported net of investment expenses. The Company uses the interest method to recognize interest income on its commercial mortgage loans. The Company anticipates prepayments of principal in the calculation of the effective yield for mortgage-backed securities and structured securities. The retrospective method is used to adjust the effective yield for the majority of the Company’s mortgage-backed and structured securities. For credit-sensitive structured securities, the effective yield is recalculated on a prospective basis. Total OTTI Losses Prior to January 1, 2020, the Company separated OTTI losses of a debt security into two components of credit and non-credit losses. For debt securities with credit losses and non-credit losses or gains, total OTTI losses was the total of the decline in fair value from either the most recent OTTI determination or a prior period end in which the fair value declined until the current period end valuation date. This amount did not include any securities that had fair value increases. For debt securities that the Company had either the intent to sell or it was more likely than not that it would be required to sell below amortized cost, total OTTI losses were the amount by which the fair value of the security was less than its amortized cost basis at the period end valuation date and the decline in fair value was deemed to be OTTI. The amount of the OTTI related to a credit loss was recognized in earnings, and the amount of the OTTI related to other, non-credit factors ( e.g. , interest rates, market conditions, etc.) was recorded as a component of other comprehensive income. The difference between the amortized cost of the security and the present value of projected future cash flows expected to be collected represented a credit loss that was recognized in earnings. If the estimated fair value was less than the present value of projected future cash flows expected to be collected, this portion of OTTI represented a non-credit loss that was recorded in other comprehensive income. Cash and Cash Equivalents The Company considers all highly liquid securities and other investments with durations of three months or less between the date of purchase and maturity to be cash equivalents. These amounts are carried at cost, which approximates fair value. Cash balances are reviewed at the end of each reporting period to determine if negative cash balances exist. If negative cash balances exist, the cash accounts are netted with other positive cash accounts of the same bank provided the right of offset exists between the accounts. If the right of offset does not exist, the negative cash balances are reclassified to accounts payable and other liabilities. Restricted cash and cash equivalents, of $27.9 million and $14.6 million at December 31, 2021 and 2020, respectively, principally related to cash deposits involving insurance programs with restrictions as to withdrawal and use, are classified within cash and cash equivalents in the consolidated balance sheets. Reinsurance For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. Reinsurance recoverables include amounts related to paid benefits and estimated amounts related to unpaid policy and contract claims, future policyholder benefits and policyholder contract deposits. The cost of reinsurance is recognized as a reduction to premiums earned over the terms of the underlying reinsured policies. Amounts recoverable from reinsurers are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefits reserves and are reported in the consolidated balance sheets. The cost of reinsurance related to long-duration contracts is recognized over the life of the underlying reinsured policies. The ceding of insurance does not discharge the Company’s primary liability to insureds, thus a credit exposure exists to the extent that any reinsurer is unable to meet the obligation assumed in the reinsurance agreements. To mitigate this exposure to reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and typically holds collateral (in the form of funds withheld, trusts and letters of credit) as security under the reinsurance agreements. Effective January 1, 2020, the Company adopted the expected credit loss model for reinsurance recoverables. The Company uses a probability of default and loss given default methodology in estimating the allowance, whereby the credit ratings of reinsurers are used in determining the probability of default. The allowance is established for reinsurance recoverables on paid and unpaid future policy benefits and claims and benefits. Prior to applying default factors, the net exposure to credit risk is reduced for any collateral for which the right of offset exists, such as funds withheld, assets held in trust and letters of credit, which are part of the reinsurance arrangements, with adjustments to include consideration of credit exposure on the collateral. The methodology used by the Company incorporates historical default factors for each reinsurer based on their credit rating using comparably rated bonds as published by a major ratings service. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing and other relevant factors. Prior to January 1, 2020, an allowance for doubtful accounts was recorded on the basis of periodic evaluations of balances due from reinsurers (net of collateral), reinsurer solvency, historical collection experience and current economic conditions. Funds held under reinsurance represent amounts contractually held from assuming companies in accordance with reinsurance agreements, primarily from collateral considerations. Reinsurance premiums assumed are calculated based upon payments received from ceding companies together with accrual estimates, which are based on both payments received and in force policy information received from ceding companies. Any subsequent differences arising on such estimates are recorded in the period in which they are determined. Premiums and Accounts Receivable Premiums and accounts receivable includes insurance premiums receivable from policyholders and amounts due from sponsors or agents. Effective January 1, 2020, the Company adopted the expected credit loss model for premiums and accounts receivable. For receivables due directly from the insured or consumer, the allowance for credit losses is generally calculated by aging the receivable balances and applying default factors based on the Company’s historical collection data. For receivables due from product sponsors or agents, receivable balances are generally segregated by the sponsor or agent and an appropriate default factor is determined based on creditworthiness, billing terms and aging of balances. The financial exposure of a credit loss is determined net of offsets (such as related unearned premium reserves for consumer receivables and receivables net of commissions payable, profit share liabilities and captive reinsurance for balances due from sponsors/agents) prior to applying a default factor. Prior to January 1, 2020, an allowance for doubtful accounts was recorded on the basis of periodic evaluations of balances due from third parties, considering historical collection experience, solvency and current economic conditions. Deferred Acquisition Costs Only direct and incremental costs associated with the successful acquisition of new or renewal insurance contracts are deferred to the extent that such costs are deemed recoverable from future premiums or gross profits. Acquisition costs primarily consist of commissions and premium taxes. Certain direct response advertising expenses are deferred when the primary purpose of the advertising is to elicit sales to customers who can be shown to have specifically responded to the advertising and the direct response advertising results in probable future benefits. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Premium deficiency testing is performed annually and generally reviewed quarterly. Such testing involves the use of assumptions including the anticipation of investment income to determine if anticipated future policy premiums are adequate to recover all DAC and related claims, benefits and expenses. To the extent a premium deficiency exists, it is recognized immediately by a charge to the consolidated statement of operations and a corresponding reduction in DAC. If the premium deficiency is greater than unamortized DAC, a loss (and related liability) is recorded for the excess deficiency. Short Duration Contracts Acquisition costs relating to extended service contracts, vehicle service contracts, mobile device protection, credit insurance, lender-placed homeowners insurance and flood, multifamily housing and manufactured housing insurance are amortized over the term of the contracts in relation to premiums earned. These acquisition costs consist primarily of advance commissions paid to agents. Long Duration Contracts DAC related to traditional long duration contracts such as long-term care and long-term disability insurance is amortized over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. For universal life insurance policies and deferred annuity contracts no longer offered, DAC is amortized in proportion to the present value of estimated gross profits from investment, mortality, expense margins and surrender charges over the estimated life of the policy or contract. Estimated gross profits include the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. The assumptions used for the estimates are consistent with those used in computing the policy or contract liabilities. Property and Equipment Property and equipment are reported at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over estimated useful lives with a maximum of 39.5 years for buildings, a maximum of seven years for furniture and a maximum of five years for equipment. Expenditures for maintenance and repairs are charged to income as incurred. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset. Property and equipment also include capitalized software costs, comprised of purchased software as well as certain internal and external costs incurred during the application development stage that directly relate to obtaining, developing or upgrading internal use software. Such costs are capitalized and amortized using the straight-line method over their estimated useful lives, not to exceed 15 years. Property and equipment are assessed for impairment when impairment indicators exist. Goodwill Goodwill represents the excess of acquisition costs over the net fair value of identifiable assets acquired and liabilities assumed in a business combination. Goodwill is deemed to have an indefinite life and is not amortized, but rather is tested at least annually for impairment. The Company performs the annual goodwill impairment test as of October 1 each year, or more frequently if indicators of impairment exist. Such indicators include: a significant adverse change in legal factors, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a significant decline in the Company’s expected future cash flows due to changes in company-specific factors or the broader business climate. The evaluation of such factors requires considerable management judgment. Goodwill is tested for impairment at the reporting unit level, which is either at the operating segment or one level below, if that component is a business for which discrete financial information is available and segment management regularly reviews such information. Components within an operating segment can be aggregated into one reporting unit if they have similar economic characteristics. At the time of the annual goodwill test, the Company has the option to first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. The Company is required to perform an additional quantitative step if it determines qualitatively that it is more likely than not (likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Otherwise, no further testing is required. If the Company determines that it is more likely than not that the reporting unit’s fair value is less than the carrying value, or otherwise elects to perform the quantitative testing, the Company compares the estimated fair value of the reporting unit with its net book value. If the reporting unit’s estimated fair value exceeds its net book value, goodwill is deemed not to be impaired. If the reporting unit’s net book value exceeds its estimated fair value, an impairment loss will be recognized for the amount by which the reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill in that reporting unit. Refer to Note 15 for further details on goodwill impairment testing for 2021. Other Intangible Assets Intangible assets that have finite lives, including customer contracts, customer relationships and marketing relationships, are amortized over their estimated useful lives based on the pattern in which the intangible asset is consumed, which may be other than straight-line. Estimated useful lives of finite intangible assets are required to be reassessed on at least an annual basis. For intangible assets with finite lives, impairment is recognized if the carrying amount is not recoverable and exceeds the fair value of the other intangible asset. Generally, other intangible assets with finite lives are only tested for impairment if there are indicators of impairment (“triggers”) identified. Triggers include a significant adverse change in the extent, manner or length of time in which the intangible asset is being used or a significant adverse change in legal factors or in the business climate that could affect the value of the other intangible asset. VOBA represents the value of expected future profits in unearned premium for insurance contracts acquired in an acquisition. For vehicle service contracts and extended service contracts, such as those purchased in connection with the TWG acquisition, the amount is determined using estimates, for premium earnings patterns, paid loss development patterns, expense loads and discount rates applied to cash flows that include a provision for credit risk. The amount determined represents the purchase price paid to the seller for producing the business. For vehicle service contracts and extended service contracts, VOBA is amortized consistent with the premium earning patterns of the underlying in-force contracts. For limited payment policies, preneed life insurance policies, universal life policies and annuities, VOBA is determined using estimates for mortality, lapse, maintenance expenses, investment returns and other applicable purchase assumptions at the date of purchase and is amortized over the expected life of the policies. VOBA is tested at least annually in the fourth quarter for recoverability. Amortization expense and impairment charges for other intangible assets are included in underwriting, general and administrative expenses in the consolidated statements of operations. Other Assets Other assets include prepaid items, income tax receivable, deferred income tax assets, right-of-use assets, dealer loans, investments in unconsolidated entities and inventory associated with the Company’s mobile protection business. Separate Accounts Assets and liabilities associated with separate accounts relate to premium and annuity considerations for variable life and annuity products for which the contract-holder, rather than the Company, bears the investment risk. Separate account assets (with matching liabilities) are reported at fair value. Revenues and expenses related to the separate account assets and liabilities, to the extent of benefits paid or provided to the separate account policyholders, are excluded from the amounts reported in the a |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions HYLA On December 1, 2020, the Company acquired HYLA, a leading provider of smartphone software, trade-in and upgrade services. The total consideration was $346.9 million, comprised of a base purchase price of $325.0 million and purchase price adjustments of $21.9 million, including excess cash in the business. The Company recorded $39.5 million in net assets, $213.4 million of goodwill and $94.0 million of other intangible assets (net of deferred tax liability of $19.2 million), which are primarily customer relationships and software amortizable over 15 and 6 years, respectively. American Financial & Automotive Services On May 1, 2020, the Company acquired AFAS, a provider of automotive finance and insurance products and services, including vehicle service contracts, guaranteed asset protection insurance and other ancillary products. The total consideration was $176.9 million, comprised of a base purchase price of $157.5 million, contingent consideration of $1.5 million and other purchase price adjustments of $17.9 million, including excess cash in the business. The transaction resulted in $2.9 million in net liabilities, $104.0 million of goodwill and $75.8 million of other intangible assets, which are primarily dealer relationships amortizable over 15 years. |
Dispositions and Exit Activitie
Dispositions and Exit Activities | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions and Exit Activities | Dispositions and Exit Activities Sale of Global Preneed On August 2, 2021, the Company completed its sale of the legal entities which comprise the businesses previously reported as the Global Preneed segment and certain businesses previously disposed of through reinsurance, which were previously reported in the Corporate and Other segment (collectively, the “disposed Global Preneed business”), to subsidiaries of CUNA Mutual Group (“CUNA”) for an aggregate purchase price at closing of $1.34 billion in cash. The aggregate purchase price was comprised of a base purchase price of $1.25 billion, adjusted for (i) the amount of Leakage (as defined in the Equity Purchase Agreement, dated as of March 8, 2021, by and among the Company, Interfinancial Inc., CMFG Life Insurance Company and TruStage Global Holdings, ULC (the “Equity Purchase Agreement”)) paid by the disposed Global Preneed business after December 31, 2020 and at or prior to the closing of the transaction, (ii) the amount of any Transaction Related Expenses (as defined in the Equity Purchase Agreement) paid by the disposed Global Preneed business after the closing of the transaction, (iii) the difference between the book value of certain assets in the disposed Global Preneed business’s investment portfolio as of December 31, 2020 and the value of cash paid in substitution for the fair market value of such assets by the Company and (iv) the accrual of interest on the base purchase price, as adjusted pursuant to clauses (i) to (iii), at a rate of 6% per annum during the period beginning on January 1, 2021 and ending on the date immediately prior to the date of the closing of the transaction. The net proceeds, which is comprised of the aggregate purchase price less $37.6 million of costs to sell, were $1.31 billion. The net after-tax gain on the sale for the year ended December 31, 2021 was $720.1 million, including $606.0 million of net after-tax gains recognized from accumulated other comprehensive income. The Company reports a business as held for sale when management has received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the ensuing year and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less costs to sell, which is required to be remeasured each reporting period. If the carrying amount of the business exceeds its estimated fair value, which is based on the estimated sales price of the transaction, less costs to sell, a loss is recognized. Depreciation is not recorded on assets of a business classified as held for sale. The Company reports the results of operations of a business as discontinued operations if (i) the business is classified as held for sale; (ii) the business represents a strategic shift that will have a major impact on the Company’s operations and financial results; (iii) the operations and cash flows of the business have been or will be eliminated from the ongoing operations of the Company as a result of the disposal transaction; and (iv) the Company will not have any significant continuing involvement in the operations of the business after the disposal transaction. The results of discontinued operations are reported in net income from discontinued operations in the consolidated statements of operations for all periods presented, commencing in the period in which the business is either disposed of or is classified as held for sale, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less costs to sell. Assets and liabilities related to a business classified as held for sale which also meets the criteria for discontinued operations are segregated in the consolidated balance sheets for the current and prior periods presented. Prior to the sale, the Company determined that the disposed Global Preneed business met the criteria to be classified as held for sale and that the sale represented a strategic shift that will have a major impact on the Company’s operations and financial results. Accordingly, the results of operations of the disposed Global Preneed business are presented as net income from discontinued operations in the consolidated statements of operations and segregated in the consolidated statement of cash flows for all periods presented, and the assets and liabilities for the disposed Global Preneed business have been classified as held for sale and segregated for all periods presented in the consolidated balance sheets. The following table presents the major classes of assets and liabilities as of August 2, 2021, the date of the sale, and the major classes of assets and liabilities held for sale included in the consolidated balance sheet as of December 31, 2020. August 2, 2021 December 31, 2020 Assets Investments: Fixed maturity securities available for sale, at fair value $ 6,761.0 $ 6,633.5 Equity securities at fair value 112.6 113.9 Commercial mortgage loans on real estate, at amortized cost 599.0 616.0 Short-term investments 58.7 41.2 Other investments 14.8 52.0 Total investments 7,546.1 7,456.6 Cash and cash equivalents 27.3 21.0 Premiums and accounts receivable 4.2 7.5 Reinsurance recoverables 3,235.4 3,234.5 Accrued investment income 66.8 62.7 Deferred acquisition costs (1) 334.0 185.5 Property and equipment, net 49.3 47.2 Value of business acquired 3.9 4.3 Other assets 20.8 22.6 Assets held in separate accounts 2,322.1 2,176.8 Total assets held for sale $ 13,609.9 $ 13,218.7 Liabilities Future policy benefits and expenses $ 8,921.8 $ 8,703.5 Unearned premiums (1) 36.6 14.9 Claims and benefits payable 1,024.2 1,049.2 Commissions payable 10.6 9.4 Reinsurance balances payable 4.1 3.1 Accounts payable and other liabilities 127.2 154.4 Liabilities related to separate accounts 2,322.1 2,176.8 Total liabilities held for sale $ 12,446.6 $ 12,111.3 (1) Deferred acquisition costs and unearned premiums include the impact of changes in unrealized gains (losses) on the amortization. The following table summarizes the components of net income (loss) from discontinued operations included in the consolidated statements of operations: Years Ended December 31, 2021 2020 2019 Revenues Net earned premiums $ 42.6 $ 66.9 $ 61.2 Fees and other income 91.0 151.1 155.4 Net investment income 168.4 289.3 291.8 Net realized gains (losses) on investments and fair value changes to equity securities 4.2 (8.0) 9.3 Gain on disposal of businesses (1) 916.2 — — Total revenues 1,222.4 499.3 517.7 Benefits, losses and expenses Policyholder benefits 172.7 284.4 269.0 Amortization of deferred acquisition costs and value of business acquired 46.2 80.5 84.9 Underwriting, general and administrative expenses 39.0 62.1 64.0 Goodwill impairment (2) — 137.8 — Total benefits, losses and expenses 257.9 564.8 417.9 Income (loss) from discontinued operations before income taxes 964.5 (65.5) 99.8 Provision for income taxes (3) 205.6 12.2 19.4 Net income (loss) from discontinued operations $ 758.9 $ (77.7) $ 80.4 (1) Includes $774.2 million of pre-tax AOCI, primarily net unrealized gains on investments, that was recognized in earnings upon sale. (2) During the third quarter of 2020, the Company identified impairment indicators impacting the fair value of the Global Preneed reportable segment in connection with exploring strategic alternatives for the Global Preneed business. Such impairment indicators, including the evaluation of the long-term economic performance of the segment in light of further expected declines in interest rates, triggered the requirement for an interim goodwill impairment analysis in the third quarter of 2020. The fair value, which was determined using a discounted cash flow method, was lower than the carrying value, resulting in the impairment charge of the entire goodwill of $137.8 million. (3) Includes $168.2 million of tax on the AOCI that was recognized in earnings upon sale, as noted above. John Alden Life Insurance Company In December 2021, the Company entered into an agreement to sell JALIC, a runoff business reported in the Corporate and Other segment. The transaction is expected to close in the first half of 2022, subject to regulatory approvals and other customary closing conditions. As of December 31, 2021, JALIC met the criteria for held for sale presentation as described above and, therefore, its assets and liabilities were recorded as held for sale in the consolidated balance sheet. The major classes of assets and liabilities held for sale as of December 31, 2021 included $915.8 million of future policy benefits and expenses, $881.6 million of reinsurance recoverables, $159.6 million of other investments and $117.2 million of claims and benefits payable. Sale of Collateralized Loan Obligation Asset Management Platform In July 2020, the Company sold its CLO asset management platform for $20.0 million in cash consideration, resulting in a net gain of $18.3 million, including costs to sell, for the year ended December 31, 2020, reported through underwriting, general and administrative expenses in the consolidated statements of operations. The Company incurred additional exit related expenses of $7.5 million for the year ended December 31, 2020, that were also included in underwriting, general and administrative expenses in the consolidated statements of operations. Prior to the sale, the CLOs were VIEs that the Company consolidated. The Company retained its direct investments in the CLOs following the sale, but deconsolidated the CLOs in third quarter 2020 since it no longer acts as collateral manager and, as a result, no longer has the power to control the CLO entities. Sale of Investment in Iké In 2014, the Company made an approximately 40% investment in Iké Grupo, Iké Asistencia and certain of their affiliates (collectively, “Iké”), a services assistance business, for which the Company paid approximately $110.0 million. At the same time, the Company also entered into a shareholders’ agreement that provided the right to acquire the remainder of Iké from the majority shareholders and the majority shareholders the right to put their interests in Iké to the Company (together, the “put/call”) in mid-2019 at a predetermined price. During 2019, the Company entered into a cooperation agreement with the majority shareholders of Iké to extend the put/call. In January 2020, in lieu of exercising the put/call, the Company entered into a formal agreement to sell its interests in Iké. In May 2020, the Company completed the sale of its interests in Iké and terminated its put/call obligations recognizing a net loss on sale of $3.9 million pre-tax and $2.9 million after-tax in the second quarter of 2020. Prior to the sale, in 2020, the Company recorded aggregate impairment losses and put/call valuation losses of $22.3 million compared to $163.0 million for the year ended December 31, 2019, which was comprised of a $78.3 million impairment that includes consideration of cumulative foreign currency translation losses of $38.4 million recorded in other comprehensive income and a pre-tax charge of $84.7 million related to the change in value of the put/call for the year ended December 31, 2019. In connection with the anticipated sale, the Company entered into a financial derivative in January 2020 that provided an economic hedge against declines in the Mexican Peso relative to the U.S. Dollar since the purchase price was to be paid in Mexican Pesos. The Company settled its position upon the sale, resulting in a cash inflow of $22.0 million, and net realized (losses) gains on the derivative of $20.3 million during the second quarter of 2020. In total, the Company recorded net pre-tax charges of $5.9 million and $163.0 million for the years ended December 31, 2020 and 2019, respectively, presented as Iké net losses in the consolidated statements of operations. For the year ended December 31, 2020, total impairment and put/call losses resulted in a tax benefit of $6.7 million; however, this was fully offset by a valuation allowance as the realizability of the tax losses in the related tax jurisdiction is unlikely. There was tax expense of $4.3 million on the income arising on the financial derivative in the second quarter of 2020, as such contract was originated in the U.S. tax jurisdiction. The losses in 2019 generated deferred tax assets of $48.8 million when applying the applicable effective tax rate. The Company recognized a full valuation allowance of the $48.8 million that arose in 2019 and $0.9 million established against the Iké deferred tax asset as of December 31, 2018. As such, after-tax charges of $9.3 million and $163.9 million were recorded for the years ended December 31, 2020 and 2019, respectively. In connection with the sale, the Company provided financing to Iké Grupo in an aggregate principal amount of $34.0 million (the “Iké Loan”). In April 2021, the Iké Loan was prepaid in full. Assurant Health Exit Activities The Company substantially completed its exit from the health insurance market as of December 31, 2016, a process that began in 2015. Between 2014 and 2016, the Company participated in the reinsurance, risk adjustment and risk corridor programs introduced by the Patient Protection and Affordable Health Care Act of 2010 (“ACA”). In connection with these programs, the Company held a $106.7 million gross risk corridor receivable due to the Company’s participation in the risk corridor program in 2015, which was reduced by a full valuation allowance because payments from the U.S. Department of Health and Human Services were considered unlikely, resulting in no net receivable. In December 2018, the Company subsidiary that held the receivable rights, Time Insurance Company (“TIC”), was sold to a third party. In connection with the sale, the Company and TIC entered into a participation agreement (the “Participation Agreement”) in which the Company was granted a 100% participation interest in the future claim proceeds, if any, of the risk corridor receivable recovered by TIC. The collection prospects of the risk corridor receivables began to improve following litigation challenging the legal basis for non-payment under the ACA program. This led to increasing levels of market participant interest in the purchase of the interests in such receivables, despite the remaining uncertainty of the outcome of the pending litigation. During the fourth quarter of 2019, the Company entered into an agreement with a third-party in which it received $26.7 million in cash as consideration for all future claim proceeds, less 20% of cash received in excess of the initial consideration of $26.7 million, which would be retained by the Company. The upfront cash proceeds received by the Company in 2019 were non-recourse. The Company deemed the amount to be indicative of recovery of its interests in the risk corridor receivables and accordingly adjusted the valuation allowance by $26.7 million, through a reduction to underwriting, general and administrative expenses in the consolidated statement of operations for the year ended December 31, 2019 with a corresponding increase in other assets in the consolidated balance sheet as of December 31, 2019. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The Company adopted the expected credit loss standard using a modified retrospective method for all financial assets measured at amortized cost. Results for the reporting periods beginning January 1, 2020 and after are presented under such method while prior period amounts are reported in accordance with previous applicable GAAP. The Company recorded a decrease of $20.4 million to retained earnings, net of tax, as of January 1, 2020 for the cumulative impact of adoption. The total allowance for credit losses for the financial assets was $18.0 million and $43.9 million as of December 31, 2021 and 2020, respectively. The following table presents the net increases (decreases) to the allowance for credit losses as classified in the consolidated statements of operations for the periods indicated: For the Years Ended December 31, 2021 2020 Commercial mortgage loans on real estate $ (0.5) $ 1.2 Fixed maturity securities available for sale (1) (1.2) 1.2 Iké Loan (2) (1.4) 1.4 Net realized gains (losses) on investments and fair value changes to equity securities (3.1) 3.8 Underwriting, general and administrative expenses (0.4) 3.6 Net (decrease) increase in allowance for credit losses $ (3.5) $ 7.4 (1) These securities were sold during the year ended December 31, 2021. Refer to Note 8 for additional information. (2) The Iké Loan was repaid in full during the year ended December 31, 2021. Refer to Note 4 for additional information. Reinsurance Recoverables As part of the Company’s overall risk and capacity management strategy, reinsurance is used to mitigate certain risks underwritten by various business segments. The Company is exposed to the credit risk of reinsurers, as the Company remains liable to insureds regardless of whether related reinsurance recoverables are collected. As of December 31, 2021 and 2020, reinsurance recoverables totaled $6.18 billion and $6.61 billion, respectively, the majority of which are protected from credit risk by various types of collateral or other risk mitigation mechanisms, such as trusts, letters of credit or by withholding the assets in a modified coinsurance or funds withheld arrangement. The Company utilizes external credit ratings published by S&P Global Ratings, a division of S&P Global Inc., at the balance sheet date when determining the allowance. Where rates are not available, the Company assigns default credit ratings based on if the reinsurer is authorized or unauthorized. Of the total recoverables subject to the allowance, 92% were rated A- or better, 1% were rated BBB or BB and 7% were not rated based on the Company’s analysis and assigned ratings for the year ended December 31, 2021; and 51% were rated A- or better, 35% were rated BBB or BB, and 14% were not rated based on the Company’s analysis and assigned ratings for the year ended December 31, 2020. The following table presents the changes in the allowance for credit losses by portfolio segment for reinsurance recoverables for the periods indicated: Global Lifestyle Global Housing Corporate Total Balance, December 31, 2019 $ 2.5 $ 0.3 $ — $ 2.8 Cumulative effect of adoption 3.9 0.7 16.1 20.7 Current period change for credit losses — 0.1 3.2 3.3 Recoveries (2.5) — — (2.5) Other — 0.3 — 0.3 Balance, December 31, 2020 3.9 1.4 19.3 24.6 Current period change for credit losses (0.3) (0.2) (1.0) (1.5) Other — (0.3) (17.8) (18.1) Balance, December 31, 2021 $ 3.6 $ 0.9 $ 0.5 $ 5.0 For the year ended December 31, 2021, the current period change for credit losses was $(1.5) million, primarily due to an increase in collateral held as security under the reinsurance agreements. For the year ended December 31, 2020, the current period change for credit losses was $3.3 million, primarily due to the increased risk of anticipated recoveries upon default following the recent economic impact related to COVID-19. When determining the allowance as of December 31, 2021 and 2020, the Company did not increase default probabilities by reinsurer since there had been no credit rating downgrades or major negative credit indications of the Company’s reinsurers that has impacted rating. The allowance may be increased and income reduced in future periods if there are future ratings downgrades or other measurable information supporting an increase in reinsurer default probabilities, including collateral reductions. Premium and Accounts Receivables The Company is exposed to credit risk from premiums and other accounts receivables. For premiums receivable, the exposure to loss upon a default is often mitigated by the ability to terminate the policy on default and offset the corresponding unearned premium liability. The Company has other mitigating offsets from amounts payable on commissions and profit share arrangements when the counterparty to the receivable is a sponsor/agent of the Company’s insurance product. The following table presents the changes in the allowance for credit losses by portfolio segment for premium and accounts receivables for the periods indicated: Global Lifestyle Global Housing Corporate Total Balance, December 31, 2019 $ 14.2 $ 0.2 $ 0.4 $ 14.8 Cumulative effect of adoption 1.3 0.5 — 1.8 Current period change for credit losses 0.9 2.9 0.2 4.0 Recoveries (1.4) — — (1.4) Write-offs (5.6) — — (5.6) Foreign currency translation (0.3) — — (0.3) Balance, December 31, 2020 9.1 3.6 0.6 13.3 Current period change for credit losses (0.6) (0.1) — (0.7) Recoveries (0.1) — (0.6) (0.7) Write-offs (1.1) (1.1) — (2.2) Foreign currency translation (0.3) — — (0.3) Balance, December 31, 2021 $ 7.0 $ 2.4 $ — $ 9.4 For the year ended December 31, 2021, the current period change for credit losses was $(0.7) million. For the year ended December 31, 2020, the current period change for credit losses was $4.0 million, primarily due to an increase in past due accounts and default factors following the economic impact related to COVID-19 to reflect the expectation that future defaults will exceed historical defaults. There is a risk that income may be reduced in future periods for additional credit losses. Commercial Mortgage Loans Upon adoption of the expected credit loss standard on January 1, 2020, the Company increased its allowance for credit losses from $0.3 million to $0.4 million. For the years ended December 31, 2021 and 2020, the current period change for credit losses was $(0.5) million and $1.2 million, respectively, due to an improving economic and commercial real estate outlook in 2021 following the 2020 economic impact relating to COVID-19. Refer to Notes 2 and 8 for additional information on commercial mortgage loans. Available for Sale Securities |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information As of December 31, 2021, the Company had three reportable segments, which are defined based on the manner in which the Company’s chief operating decision maker, the Chief Executive Officer (“CEO”), reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered: Global Lifestyle, Global Housing and Corporate and Other. The measure of segment profitability used in evaluating performance is segment net income from continuing operations. Segment net income from continuing operations of the Global Lifestyle and Global Housing reportable segments is equal to segment net operating income. Corporate and Other includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments and fair value changes to equity securities, interest income earned from short-term investments held, income (expenses) primarily related to the Company’s frozen benefit plans, amounts related to businesses previously disposed of through reinsurance and the run-off of the Assurant Health business. Corporate and Other also includes goodwill impairments, the foreign currency gains (losses) from remeasurement of monetary assets and liabilities, changes in the fair value of derivative instruments and other expenses related to merger and acquisition activities, as well as other highly variable or unusual items other than reportable catastrophes (reportable catastrophe losses, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums). The Company determined its reportable segments using the management approach described in accounting guidance regarding disclosures about segments of an enterprise and related information. These reportable segment groupings are consistent with information used by our chief operating decision maker to assess performance and allocate resources. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. See Note 2 for additional information. Subsequent event In conjunction with the transition of our new CEO and chief operating decision maker, the Company changed its segment measure of profitability for its reportable segments to an Adjusted EBITDA metric, the primary measure used for purposes of making decisions about allocating resources to the segments and assessing performance, from segment net income from continuing operations, effective January 1, 2022. In subsequent presentations, the Company will report using the new segment measure for profitability and revise prior periods required to be presented to conform with the change. The following tables summarize selected financial information by segment for the periods indicated: Year Ended December 31, 2021 Global Lifestyle Global Housing Corporate Consolidated Revenues Net earned premiums $ 6,720.3 $ 1,851.8 $ — $ 8,572.1 Fees and other income 1,027.4 144.8 0.7 1,172.9 Net investment income 201.3 81.0 32.1 314.4 Net realized gains on investments and fair value changes to equity securities — — 128.2 128.2 Total revenues 7,949.0 2,077.6 161.0 10,187.6 Benefits, losses and expenses Policyholder benefits 1,333.1 862.6 — 2,195.7 Amortization of deferred acquisition costs and value of business acquired 3,602.2 233.6 — 3,835.8 Underwriting, general and administrative expenses 2,398.5 671.4 170.7 3,240.6 Interest expense — — 111.8 111.8 Loss on extinguishment of debt — — 20.7 20.7 Total benefits, losses and expenses 7,333.8 1,767.6 303.2 9,404.6 Segment income (loss) before provision (benefit) for income taxes 615.2 310.0 (142.2) 783.0 Provision (benefit) for income taxes 130.5 65.4 (26.4) 169.5 Segment net income (loss) from continuing operations $ 484.7 $ 244.6 $ (115.8) 613.5 Net income from discontinued operations 758.9 Net income 1,372.4 Less: Net income attributable to non-controlling interest — Net income attributable to stockholders 1,372.4 Less: Preferred stock dividends (4.7) Net income attributable to common stockholders $ 1,367.7 Segment assets (1) $ 26,210.0 $ 4,131.2 $ 3,570.3 $ 33,911.5 Year Ended December 31, 2020 Global Lifestyle Global Housing Corporate Consolidated Revenues Net earned premiums $ 6,442.2 $ 1,833.6 $ — $ 8,275.8 Fees and other income 895.4 143.7 3.2 1,042.3 Net investment income 194.3 72.8 18.5 285.6 Net realized losses on investments and fair value changes to equity securities — — (8.2) (8.2) Total revenues 7,531.9 2,050.1 13.5 9,595.5 Benefits, losses and expenses Policyholder benefits 1,412.6 852.1 0.2 2,264.9 Amortization of deferred acquisition costs and value of business acquired 3,365.9 225.6 — 3,591.5 Underwriting, general and administrative expenses 2,189.1 677.3 181.5 3,047.9 Iké net losses — — 5.9 5.9 Interest expense — — 104.5 104.5 Total benefits, losses and expenses 6,967.6 1,755.0 292.1 9,014.7 Segment income (loss) before provision (benefit) for income taxes 564.3 295.1 (278.6) 580.8 Provision (benefit) for income taxes 127.1 61.3 (128.0) 60.4 Segment net income (loss) from continuing operations $ 437.2 $ 233.8 $ (150.6) 520.4 Net loss from discontinued operations (77.7) Net income 442.7 Less: Net income attributable to non-controlling interest (0.9) Net income attributable to stockholders 441.8 Less: Preferred stock dividends (18.7) Net income attributable to common stockholders $ 423.1 Segment assets (1) $ 24,360.8 $ 4,014.3 $ 16,274.8 $ 44,649.9 Year Ended December 31, 2019 Global Lifestyle Global Housing Corporate Consolidated Revenues Net earned premiums $ 6,073.7 $ 1,885.1 $ — $ 7,958.8 Fees and other income 1,020.5 148.6 1.0 1,170.1 Net investment income 250.8 95.2 37.2 383.2 Net realized gains on investments and fair value changes to equity securities — — 57.0 57.0 Total revenues 7,345.0 2,128.9 95.2 9,569.1 Benefits, losses and expenses Policyholder benefits 1,516.2 869.5 — 2,385.7 Amortization of deferred acquisition costs and value of business acquired 3,015.7 221.5 — 3,237.2 Underwriting, general and administrative expenses 2,277.6 711.6 197.3 3,186.5 Iké net losses — — 163.0 163.0 Interest expense — — 110.6 110.6 Loss on extinguishment of debt — — 31.4 31.4 Total benefits, losses and expenses 6,809.5 1,802.6 502.3 9,114.4 Segment income (loss) before provision (benefit) for income taxes 535.5 326.3 (407.1) 454.7 Provision (benefit) for income taxes 126.2 67.6 (45.5) 148.3 Segment net income (loss) from continuing operations $ 409.3 $ 258.7 $ (361.6) 306.4 Net income from discontinued operations 80.4 Net income 386.8 Less: Net income attributable to non-controlling interest (4.2) Net income attributable to stockholders 382.6 Less: Preferred stock dividends (18.7) Net income attributable to common stockholders $ 363.9 (1) Segment assets for Global Lifestyle and Global Housing do not include net unrealized gains on securities attributable to those segments, which are all included within Corporate and Other. The Company principally operates in the U.S., as well as Europe, Latin America, Canada and Asia Pacific. The following table summarizes selected financial information by geographic location for the years ended or as of December 31, 2021, 2020 and 2019: Location Revenues Long-lived 2021 United States $ 8,323.2 $ 530.6 Foreign countries 1,864.4 30.8 Total $ 10,187.6 $ 561.4 2020 United States $ 7,633.2 $ 422.9 Foreign countries 1,962.3 23.2 Total $ 9,595.5 $ 446.1 2019 United States $ 7,464.7 $ 348.2 Foreign countries 2,104.4 42.5 Total $ 9,569.1 $ 390.7 Revenue is based in the country where the product was sold and the physical location of long-lived assets, which are primarily property and equipment. The Company’s net earned premiums, fees and other income by segment and product are as follows for the periods indicated: Years Ended December 31, 2021 2020 2019 Global Lifestyle: Connected Living $ 3,915.8 $ 3,836.6 $ 3,768.4 Global Automotive 3,436.9 3,113.0 2,873.6 Global Financial Services and Other 395.0 388.0 452.2 Total $ 7,747.7 $ 7,337.6 $ 7,094.2 Global Housing: Lender-placed Insurance $ 1,065.9 $ 1,052.5 $ 1,109.2 Multifamily Housing 482.3 451.6 429.2 Specialty and Other 448.4 473.2 495.3 Total $ 1,996.6 $ 1,977.3 $ 2,033.7 |
Contract Revenues
Contract Revenues | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract Revenues | Contract Revenues The Company partners with clients to provide consumers with a diverse range of protection products and services. The Company’s revenues from protection products are accounted for as insurance contracts and are recognized over the term of the insurance protection provided. Revenues from service contracts and sales of products are recognized as the contractual performance obligations are satisfied or the products are delivered. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for performing the services or transferring products. If payments are received before the related revenue is recognized, the amount is recorded as unearned revenue or advance payment liabilities, until the performance obligations are satisfied or the products are transferred. The disaggregated revenues from service contracts included in fees and other income on the consolidated statement of operations are $1.01 billion, $714.1 million and $852.8 million for Global Lifestyle and $94.3 million, $95.6 million and $104.1 million for Global Housing for the years ended December 31, 2021, 2020 and 2019, respectively. Global Lifestyle In the Company’s Global Lifestyle segment, revenues from service contracts and sales of products are primarily from the Company’s Connected Living business. Through partnerships with mobile carriers, the Company provides administrative services related to its mobile device protection products, including program design and marketing strategy, risk management, data analytics, customer support and claims handling, supply chain and service delivery, repair and logistics, and device disposition. Administrative fees are generally billed monthly based on the volume of services provided during the billing period (for example, based on the number of mobile subscribers) with payment due within a short-term period. Each service or bundle of services, depending on the contract, is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer. The Company also repairs, refurbishes and then sells mobile and other electronic devices, on behalf of its client, for a bundled per unit fee. The entire processing of the device is considered one performance obligation with a standalone selling price and thus, the per unit fee is recognized when the products are sold. Payments are generally due prior to shipment or within a short-term period. Global Housing In the Company’s Global Housing segment, revenues from service contracts and sales of products are primarily from the Company’s Lender-placed Insurance business. Under the Company’s Lender-placed Insurance business, the Company provides loan and claim payment tracking services for lenders. The Company generally invoices its customers weekly or monthly based on the volume of services provided during the billing period with payment due within a short-term period. Each service is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer. Contract Balances The receivables and unearned revenue under these contracts were $313.7 million and $191.5 million, respectively, as of December 31, 2021, and $257.9 million and $89.8 million, respectively, as of December 31, 2020. These balances are included in premiums and accounts receivable and the accounts payable and other liabilities, respectively, in the consolidated balance sheets. Revenue from service contracts and sales of products recognized during the years ended December 31, 2021 and 2020 that was included in unearned revenue as of December 31, 2020 and 2019 were $75.5 million and $43.3 million, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The following tables show the cost or amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value of the Company’s fixed maturity securities as of the dates indicated: December 31, 2021 Cost or Allowance for Credit Losses Gross Gross Fair Value Fixed maturity securities: U.S. government and government agencies and authorities $ 83.0 $ — $ 2.1 $ (0.1) $ 85.0 States, municipalities and political subdivisions 142.2 — 7.0 (0.7) 148.5 Foreign governments 436.0 — 5.9 (4.2) 437.7 Asset-backed 411.1 — 14.2 (2.3) 423.0 Commercial mortgage-backed 466.7 — 10.3 (3.3) 473.7 Residential mortgage-backed 578.4 — 25.2 (1.7) 601.9 U.S. corporate 3,581.2 — 235.9 (14.0) 3,803.1 Foreign corporate 1,205.3 — 46.0 (8.9) 1,242.4 Total fixed maturity securities $ 6,903.9 $ — $ 346.6 $ (35.2) $ 7,215.3 December 31, 2020 Cost or Allowances for Credit Losses Gross Gross Fair Value Fixed maturity securities: U.S. government and government agencies and authorities $ 90.4 $ — $ 3.7 $ — $ 94.1 States, municipalities and political subdivisions 164.4 — 11.0 (0.1) 175.3 Foreign governments 442.4 — 27.4 (0.1) 469.7 Asset-backed 251.9 — 9.4 (0.8) 260.5 Commercial mortgage-backed 266.3 — 16.5 (1.4) 281.4 Residential mortgage-backed 685.8 — 49.0 (0.2) 734.6 U.S. corporate 3,315.6 (1.2) 380.6 (4.4) 3,690.6 Foreign corporate 1,029.0 — 80.6 (0.3) 1,109.3 Total fixed maturity securities $ 6,245.8 $ (1.2) $ 578.2 $ (7.3) $ 6,815.5 The cost or amortized cost and fair value of fixed maturity securities as of December 31, 2021 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2021 Cost or Fair Value Due in one year or less $ 376.9 $ 381.1 Due after one year through five years 2,117.3 2,200.7 Due after five years through ten years 1,892.8 1,988.5 Due after ten years 1,060.7 1,146.4 Total 5,447.7 5,716.7 Asset-backed 411.1 423.0 Commercial mortgage-backed 466.7 473.7 Residential mortgage-backed 578.4 601.9 Total $ 6,903.9 $ 7,215.3 The following table shows the major categories of net investment income for the periods indicated: Years Ended December 31, 2021 2020 2019 Fixed maturity securities $ 232.8 $ 228.4 $ 241.2 Equity securities 14.9 14.5 14.9 Commercial mortgage loans on real estate 8.9 8.2 8.3 Short-term investments 2.1 5.7 10.8 Other investments 61.0 16.6 41.4 Cash and cash equivalents 8.5 13.3 37.8 Revenues from consolidated investment entities (1) — 56.3 119.2 Total investment income 328.2 343.0 473.6 Investment expenses (13.8) (20.5) (20.3) Expenses from consolidated investment entities (1) — (36.9) (70.1) Net investment income $ 314.4 $ 285.6 $ 383.2 (1) The following table shows the revenues net of expenses from consolidated investment entities for the periods indicated. Years Ended December 31, 2021 2020 2019 Investment income (loss) from direct investments in: Real estate funds (1) $ — $ 8.3 $ 25.1 CLO entities — 8.0 17.0 Investment management fees — 3.1 7.0 Net investment income from consolidated investment entities $ — $ 19.4 $ 49.1 (1) The investment income from the real estate funds includes income (loss) attributable to non-controlling interest $1.1 million and $3.8 million for the years ended December 31, 2020 and 2019, respectively. No material investments of the Company were non-income producing for the years ended December 31, 2021, 2020 and 2019. The following table summarizes the proceeds from sales of available-for-sale fixed maturity securities and the gross realized gains and gross realized losses that have been recognized in the statement of operations as a result of those sales for the periods indicated: Years Ended December 31, 2021 2020 2019 Fixed maturity securities: Proceeds from sales $ 1,361.8 $ 515.4 $ 1,729.1 Gross realized gains $ 31.9 $ 19.6 $ 24.3 Gross realized losses (14.8) (6.8) (8.2) Net realized gains (losses) on investments from sales of fixed maturity securities $ 17.1 $ 12.8 $ 16.1 For securities sold at a loss during the year ended December 31, 2021, the average period of time these securities were trading continuously at a price below book value was approximately 6 months. The following table sets forth the net realized gains (losses) on investments and fair value changes to equity securities, including impairments, recognized in the statement of operations for the periods indicated: Years Ended December 31, 2021 2020 2019 Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other: Fixed maturity securities $ 17.2 $ 12.7 $ 16.4 Equity securities (1) (2) 108.3 21.6 37.5 Commercial mortgage loans on real estate 0.5 (1.2) — Other investments 2.0 10.7 15.0 Consolidated investment entities (3) — (32.3) (9.8) Total net realized gains (losses) on investments and fair value changes to equity securities related to sales and other 128.0 11.5 59.1 Net realized gains (losses) related to impairments: Fixed maturity securities (4) 1.2 (2.6) (0.6) Other investments (1) (1.0) (17.1) (1.5) Total net realized gains (losses) related to impairments 0.2 (19.7) (2.1) Total net realized gains (losses) on investments and fair value changes to equity securities $ 128.2 $ (8.2) $ 57.0 (1) Gross gains of $24.3 million, $10.5 million and $13.4 million were realized on equity investments accounted for under the measurement alternative for the years ended December 31, 2021, 2020 and 2019, respectively. The carrying value of equity investments accounted for under the measurement alternative was $103.7 million and $98.7 million as of December 31, 2021 and 2020, respectively. These investments are included within other investments on the consolidated balance sheets. For the years ended December 31, 2021, 2020 and 2019, there were impairments of $1.0 million, $17.1 million, and $1.5 million, respectively. For the years ended December 31, 2021, 2020 and 2019, the cumulative carrying value fair value increases were $43.0 million, $35.1 million and $24.6 million, respectively, the cumulative downward adjustments were $0.8 million, $0.0 million and $0.0 million, and the cumulative impairment losses were $14.9 million, $18.6 million and $1.5 million, respectively. (2) The year ended December 31, 2021 included $85.4 million of unrealized gains from four equity positions that went public during 2021. The total fair value of these equity securities as of December 31, 2021 was $133.7 million, included in equity securities in the consolidated balance sheet. Prior to going public, these equity positions were accounted for under the equity measurement alternative guidance and reported within other investments in the consolidated balance sheet and the fair value was $48.1 million as of December 31, 2020. (3) Consists of net realized losses from the change in fair value of the Company’s direct investment in CLOs prior to sale of the CLO asset management platform in 2020. (4) Includes credit losses of $1.2 million on fixed maturity securities available for sale for the year ended December 31, 2020. Specific securities, for which the reserve was established, were sold during the year ended December 31, 2021, resulting in the elimination of the $1.2 million allowance for credit losses. Refer to Note 5 for additional information. The following table sets forth the portion of fair value changes to equity securities held for the periods indicated: Years Ended December 31, 2021 2020 2019 Net gains (losses) recognized on equity securities $ 108.3 $ 21.6 $ 37.4 Less: Net realized gains (losses) related to sales of equity securities (4.1) 6.6 (1.1) Total fair value changes to equity securities held $ 112.4 $ 15.0 $ 38.5 The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities, as of December 31, 2021 and 2020 were as follows: December 31, 2021 Less than 12 months 12 Months or More Total Fair Value Unrealized Fair Unrealized Fair Value Unrealized Fixed maturity securities: U.S. government and government agencies and authorities $ 31.5 $ (0.1) $ — $ — $ 31.5 $ (0.1) States, municipalities and political subdivisions 48.1 (0.7) — — 48.1 (0.7) Foreign governments 216.0 (4.1) 4.0 (0.1) 220.0 (4.2) Asset-backed 257.7 (2.1) 9.8 (0.2) 267.5 (2.3) Commercial mortgage-backed 274.8 (2.9) 2.0 (0.4) 276.8 (3.3) Residential mortgage-backed 94.0 (1.5) 10.0 (0.2) 104.0 (1.7) U.S. corporate 687.8 (13.1) 15.2 (0.9) 703.0 (14.0) Foreign corporate 394.0 (8.6) 6.7 (0.3) 400.7 (8.9) Total fixed maturity securities $ 2,003.9 $ (33.1) $ 47.7 $ (2.1) $ 2,051.6 $ (35.2) December 31, 2020 Less than 12 months 12 Months or More Total Fair Value Unrealized Fair Unrealized Fair Value Unrealized Fixed maturity securities: States, municipalities and political subdivisions $ 6.1 $ (0.1) $ — $ — $ 6.1 $ (0.1) Foreign governments 28.3 (0.1) — — 28.3 (0.1) Asset-backed 54.5 (0.2) 37.4 (0.6) 91.9 (0.8) Commercial mortgage-backed 28.2 (0.7) 3.3 (0.7) 31.5 (1.4) Residential mortgage-backed 23.9 (0.1) 1.5 (0.1) 25.4 (0.2) U.S. corporate 71.9 (2.9) 13.8 (1.5) 85.7 (4.4) Foreign corporate 30.1 (0.3) — — 30.1 (0.3) Total fixed maturity securities $ 243.0 $ (4.4) $ 56.0 $ (2.9) $ 299.0 $ (7.3) Total gross unrealized losses represented approximately 2% and 2% of the aggregate fair value of the related securities as of December 31, 2021 and 2020, respectively. Approximately 94% and 60% of these gross unrealized losses had been in a continuous loss position for less than twelve months as of December 31, 2021 and 2020, respectively. The total gross unrealized losses are comprised of 1,202 and 180 individual securities as of December 31, 2021 and 2020, respectively. In accordance with its policy, the Company concluded that for these securities, the gross unrealized losses as of December 31, 2021 and December 31, 2020 were related to non-credit factors and therefore, did not recognize credit-related losses during the year ended December 31, 2021. Additionally, the Company currently does not intend to and is not required to sell these investments prior to an anticipated recovery in value. The cost or amortized cost and fair value of available-for-sale fixed maturity securities in an unrealized loss position as of December 31, 2021, by contractual maturity, is shown below: December 31, 2021 Cost or Fair Value Due in one year or less $ 15.3 $ 15.1 Due after one year through five years 443.2 436.6 Due after five years through ten years 602.9 591.3 Due after ten years 369.8 360.3 Total 1,431.2 1,403.3 Asset-backed 269.8 267.5 Commercial mortgage-backed 280.1 276.8 Residential mortgage-backed 105.7 104.0 Total $ 2,086.8 $ 2,051.6 The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. As of December 31, 2021, approximately 38% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Texas and Illinois. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans range in size from $0.1 million to $9.6 million as of December 31, 2021 and from $0.1 million to $9.9 million as of December 31, 2020. Credit quality indicators for commercial mortgage loans are loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments and is commonly expressed as a ratio. The loan-to-value and debt-service coverage ratios are generally updated annually in the fourth quarter. The following table presents the amortized cost basis of commercial mortgage loans, excluding allowance for credit losses, by origination year for certain key credit quality indicators at December 31, 2021 and 2020, respectively. December 31, 2021 Origination Year 2021 2020 2019 2018 2017 Prior Total % of Total Loan to value ratios (1): 70% and less $ 71.7 $ 5.6 $ — $ — $ 4.0 $ 99.8 $ 181.1 70.3 % 71% to 80% 61.8 — — 4.7 — 1.0 67.5 26.2 % 81% to 95% — — — — — 1.1 1.1 0.4 % Greater than 95% — — — — 5.8 2.1 7.9 3.1 % Total $ 133.5 $ 5.6 $ — $ 4.7 $ 9.8 $ 104.0 $ 257.6 100.0 % December 31, 2021 Origination Year 2021 2020 2019 2018 2017 Prior Total % of Total Debt service coverage ratios (2): Greater than 2.0 $ 59.3 $ 5.6 $ — $ — $ — $ 70.5 $ 135.4 52.6 % 1.5 to 2.0 34.1 — — 4.7 4.0 17.5 60.3 23.4 % 1.0 to 1.5 40.1 — — — — 9.9 50.0 19.4 % Less than 1.0 — — — — 5.8 6.1 11.9 4.6 % Total $ 133.5 $ 5.6 $ — $ 4.7 $ 9.8 $ 104.0 $ 257.6 100.0 % (1) LTV ratio derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated at least annually. (2) DSC ratio calculated using most recent reported operating income results from property operators divided by annual debt service coverage. December 31, 2020 Origination Year 2020 2019 2018 2017 2016 Prior Total % of Total Loan to value ratios (1): 70% and less $ 2.9 $ — $ — $ 4.1 $ 29.0 $ 87.1 $ 123.1 88.0 % 71% to 80% 2.6 — 4.8 — — — 7.4 5.3 % 81% to 95% — — — — — 2.2 2.2 1.6 % Greater than 95% — — — 6.0 — 1.2 7.2 5.1 % Total $ 5.5 $ — $ 4.8 $ 10.1 $ 29.0 $ 90.5 $ 139.9 100.0 % December 31, 2020 Origination Year 2020 2019 2018 2017 2016 Prior Total % of Total Debt service coverage ratios (2): Greater than 2.0 $ 5.5 $ — $ — $ 4.1 $ 26.4 $ 53.3 $ 89.3 63.9 % 1.5 to 2.0 — — 4.8 — 2.6 17.5 24.9 17.8 % 1.0 to 1.5 — — — — — 15.0 15.0 10.7 % Less than 1.0 — — — 6.0 — 4.7 10.7 7.6 % Total $ 5.5 $ — $ 4.8 $ 10.1 $ 29.0 $ 90.5 $ 139.9 100.0 % (1) LTV ratio derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated at least annually. (2) DSC ratio calculated using most recent reported operating income results from property operators divided by annual debt service coverage. As of December 31, 2021, the Company had mortgage loan commitments outstanding of approximately $14.1 million. The Company had short-term investments and fixed maturity securities of $537.4 million and $587.3 million as of December 31, 2021 and 2020, respectively, on deposit with various governmental authorities as required by law. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities In the normal course of business, the Company is involved with various types of investment entities that may be considered VIEs. The Company evaluates its involvement with each entity to determine whether consolidation is required. The Company’s maximum risk of loss is limited to the carrying value and unfunded commitments of its investments in the VIEs. There were no consolidated VIEs as of December 31, 2021 and 2020. Non-Consolidated VIEs Real Estate Joint Venture and Other Partnerships The Company invests in real estate joint ventures and limited partnerships, as well as a closed ended real estate fund. These investments are generally accounted for under the equity method as the primary beneficiary criteria is not met; however, the Company is able to exert significant influence over the investees operating and financial policies. These investments are included in the consolidated balance sheets in other investments. As of December 31, 2021 and 2020, the Company’s maximum exposure to loss is its recorded carrying value of $249.3 million and $253.9 million, respectively. The Company’s unfunded commitments were $38.8 million as of December 31, 2021. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company has categorized its recurring fair value basis financial assets and liabilities into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and takes into account factors specific to the asset or liability. The levels of the fair value hierarchy are described below: • Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access. • Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset or liability. The observable inputs are used in valuation models to calculate the fair value for the asset or liability. • Level 3 inputs are unobservable but are significant to the fair value measurement for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020. The amounts presented below for short-term investments, other investments, cash equivalents, other assets, assets held in and liabilities related to separate accounts and other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the AIP, the ASIC, and the ADC, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the AIP, contingent considerations related to business combinations and other derivatives. 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. December 31, 2021 Financial Assets Total Level 1 Level 2 Level 3 Fixed maturity securities: U.S. government and government agencies and authorities $ 85.0 $ — $ 85.0 $ — States, municipalities and political subdivisions 148.5 — 148.5 — Foreign governments 437.7 — 437.7 — Asset-backed 423.0 — 423.0 — Commercial mortgage-backed 473.7 — 473.7 — Residential mortgage-backed 601.9 — 601.9 — U.S. corporate 3,803.1 — 3,799.7 3.4 Foreign corporate 1,242.4 — 1,238.8 3.6 Equity securities: Mutual funds 33.3 33.3 — — Common stocks 151.1 15.5 0.7 134.9 (6) Non-redeemable preferred stocks 261.3 — 261.3 — Short-term investments 207.2 200.1 (2) 7.1 — Other investments 72.6 72.4 (1) — 0.2 Cash equivalents 1,243.9 1,190.9 (2) 53.0 (3) — Other assets 1.7 — 1.7 (4) — Assets held in separate accounts 11.8 7.7 (1) 4.1 (3) — Total financial assets $ 9,198.2 $ 1,519.9 $ 7,536.2 $ 142.1 Financial Liabilities Other liabilities $ 76.4 $ 72.4 (1) $ — $ 4.0 (5) Liabilities related to separate accounts 11.8 7.7 (1) 4.1 (3) — Total financial liabilities $ 88.2 $ 80.1 $ 4.1 $ 4.0 December 31, 2020 Financial Assets Total Level 1 Level 2 Level 3 Fixed maturity securities: U.S. government and government agencies and authorities $ 94.1 $ — $ 94.1 $ — States, municipalities and political subdivisions 175.3 — 175.3 — Foreign governments 469.7 0.5 468.8 0.4 Asset-backed 260.5 — 260.5 — Commercial mortgage-backed 281.4 — 272.7 8.7 Residential mortgage-backed 734.6 — 734.6 — U.S. corporate 3,690.6 — 3,678.6 12.0 Foreign corporate 1,109.3 — 1,105.4 3.9 Equity securities: Mutual funds 42.3 42.3 — — Common stocks 15.2 13.3 0.7 1.2 Non-redeemable preferred stocks 232.7 — 231.6 1.1 Short-term investments 253.5 202.0 (2) 51.5 — Other investments 241.3 72.9 (1) 168.3 (3) 0.1 Cash equivalents 1,558.6 1,536.6 (2) 22.0 (3) — Assets held in separate accounts 11.4 6.7 (1) 4.7 (3) — Total financial assets $ 9,170.5 $ 1,874.3 $ 7,268.8 $ 27.4 Financial Liabilities Other liabilities $ 76.1 $ 72.9 (1) $ 0.5 (4) $ 2.7 (5) Liabilities related to separate accounts 11.4 6.7 (1) 4.7 (3) — Total financial liabilities $ 87.5 $ 79.6 $ 5.2 $ 2.7 (1) Primarily includes mutual funds and related obligations. (2) Primarily includes money market funds. (3) Primarily includes fixed maturity securities and related obligations. (4) Primarily includes derivatives. (5) Includes contingent consideration liabilities and other derivatives. (6) During 2021, the Company received $133.7 million of common stock through special purpose acquisition company mergers. See Note 8 for additional information. These equity securities are subject to lock up agreements and therefore an illiquidity discount was applied to the exchange traded price, which includes significant unobservable inputs. The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets and liabilities carried at fair value for the years ended December 31, 2021 and 2020: Year Ended December 31, 2021 Balance, Total Net Purchases Sales Transfers Transfers Balance, Financial Assets Fixed Maturity Securities Foreign governments $ 0.4 $ — $ — $ — $ — $ — $ (0.4) $ — Asset-backed — — — 1.5 — — (1.5) — Commercial mortgage-backed 8.7 (1.9) 0.3 — — — (7.1) — U.S. corporate 12.0 0.2 (0.5) 0.6 (1.2) 3.4 (11.1) 3.4 Foreign corporate 3.9 — (0.1) — (0.2) 1.1 (1.1) 3.6 Equity Securities Common stock (4) 1.2 85.6 — — — 48.1 — 134.9 Non-redeemable preferred stocks 1.1 — — 1.1 (2.2) — — — Other investments 0.1 0.1 — — — — — 0.2 Financial Liabilities Other liabilities (2.7) (1.3) — — — — — (4.0) Total level 3 assets and liabilities $ 24.7 $ 82.7 $ (0.3) $ 3.2 $ (3.6) $ 52.6 $ (21.2) $ 138.1 Year Ended December 31, 2020 Balance, Total Net Purchases Sales Transfers Transfers Balance, Financial Assets Fixed Maturity Securities Foreign governments $ — $ — $ — $ — $ — $ 0.4 $ — $ 0.4 Commercial mortgage-backed 11.6 (2.8) (0.1) — — — — 8.7 Residential mortgage-backed — — 0.1 13.8 (1.1) 1.1 (13.9) — U.S. corporate 1.7 0.2 0.6 13.3 (0.4) 1.8 (5.2) 12.0 Foreign corporate 8.2 0.1 (0.5) 0.1 (0.4) — (3.6) 3.9 Equity Securities Common stock — — — — — 1.2 — 1.2 Non-redeemable preferred stocks 1.1 (4.0) — — — 4.0 — 1.1 Other investments — — (1.1) — — 2.7 (1.5) 0.1 Other assets — 20.7 — 1.7 (22.0) (0.2) (0.2) — Financial Liabilities Other liabilities (0.2) (0.4) — (2.5) — 0.2 0.2 (2.7) Total level 3 assets and liabilities $ 22.4 $ 13.8 $ (1.0) $ 26.4 $ (23.9) $ 11.2 $ (24.2) $ 24.7 (1) Included as part of net realized gains on investments, excluding other-than-temporary impairment losses, in the consolidated statements of operations. (2) Included as part of change in unrealized gains on securities in the consolidated statement of comprehensive income. (3) Transfers are primarily attributable to changes in the availability of observable market information and the re-evaluation of the observability of valuation inputs. (4) $48.1 million of transfers in represents the cost basis of common stock received through special purpose acquisition company mergers. Three different valuation techniques can be used in determining fair value for financial assets and liabilities: the market, income or cost approaches. The three valuation techniques described in the fair value measurements and disclosures guidance are consistent with generally accepted valuation methodologies. The market approach valuation techniques use prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. When possible, quoted prices (unadjusted) in active markets are used as of the period-end date (such as for mutual funds and money market funds). Otherwise, the Company uses valuation techniques consistent with the market approach including matrix pricing and comparables. Matrix pricing is a mathematical technique employed principally to value debt securities without relying exclusively on quoted prices for those securities but, rather, relying on the securities’ relationship to other benchmark quoted securities. Market approach valuation techniques often use market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering both qualitative and quantitative factors specific to the measurement. Income approach valuation techniques convert future amounts, such as cash flows or earnings, to a single present amount, or a discounted amount. These techniques rely on current market expectations of future amounts as of the period-end date. Examples of income approach valuation techniques include present value techniques, option-pricing models, binomial or lattice models that incorporate present value techniques and the multi-period excess earnings method. Cost approach valuation techniques are based upon the amount that would be required to replace the service capacity of an asset at the period-end date, or the current replacement cost. That is, from the perspective of a market participant (seller), the price that would be received for the asset is determined based on the cost to a market participant (buyer) to acquire or construct a substitute asset of comparable utility, adjusted for obsolescence. While not all three approaches are applicable to all financial assets or liabilities, where appropriate, the Company may use one or more valuation techniques. For all the classes of financial assets and liabilities included in the above hierarchy, excluding certain derivatives and certain privately placed corporate bonds, the Company generally uses the market valuation technique. For certain privately placed corporate bonds and certain derivatives, the Company generally uses the income valuation technique. For the years ended December 31, 2021 and 2020, the application of the valuation technique applied to the Company’s classes of financial assets and liabilities has been consistent. Level 1 Securities The Company’s investments and liabilities classified as Level 1 as of December 31, 2021 and 2020 consisted of mutual funds and related obligations, money market funds, foreign government fixed maturity securities and common stocks that are publicly listed and/or actively traded in an established market. Level 2 Securities The Company values Level 2 securities using various observable market inputs obtained from a pricing service. The pricing service prepares estimates of fair value measurements for the Company’s Level 2 securities using proprietary valuation models based on techniques such as matrix pricing which include observable market inputs. The fair value measurements and disclosures guidance defines observable market inputs as the assumptions market participants would use in pricing the asset or liability developed on market data obtained from sources independent of the Company. The extent of the use of each observable market input for a security depends on the type of security and the market conditions at the balance sheet date. Depending on the security, the priority of the use of observable market inputs may change as some observable market inputs may not be relevant or additional inputs may be necessary. The Company uses the following observable market inputs (“standard inputs”), listed in the approximate order of priority, in the pricing evaluation of Level 2 securities: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research data. Further details for Level 2 investment types follow: U.S. government and government agencies and authorities: U.S. government and government agencies and authorities securities are priced by the Company’s pricing service utilizing standard inputs. Included in this category are U.S. Treasury securities which are priced using vendor trading platform data in addition to the standard inputs. States, municipalities and political subdivisions: States, municipalities and political subdivisions securities are priced by the Company’s pricing service using material event notices and new issue data inputs in addition to the standard inputs. Foreign governments: Foreign government securities are primarily fixed maturity securities denominated in local currencies which are priced by the Company’s pricing service using standard inputs. The pricing service also evaluates each security based on relevant market information including relevant credit information, perceived market movements and sector news. Commercial mortgage-backed, residential mortgage-backed and asset-backed: Commercial mortgage-backed, residential mortgage-backed and asset-backed securities are priced by the Company’s pricing service using monthly payment information and collateral performance information in addition to the standard inputs. Additionally, commercial mortgage-backed securities and asset-backed securities utilize new issue data while residential mortgage-backed securities utilize vendor trading platform data. U.S. and foreign corporate: Corporate securities are priced by the Company’s pricing service using standard inputs. Non-investment grade securities within this category are priced by the Company’s pricing service using observations of equity and credit default swap curves related to the issuer in addition to the standard inputs. Certain privately placed corporate bonds are priced by a non-pricing service source using a model with observable inputs including the credit rating, credit spreads, sector add-ons, and issuer specific add-ons. Non-redeemable preferred stocks: Non-redeemable preferred stocks are priced by the Company’s pricing service using observations of equity and credit default swap curves related to the issuer in addition to the standard inputs. Short-term investments, other investments, cash equivalents, assets held in separate accounts and liabilities related to separate accounts: To price the fixed maturity securities and related obligations in these categories, the pricing service utilizes the standard inputs. Other assets and other liabilities : Foreign exchange forwards are priced using a pricing model which utilizes market observable inputs including foreign exchange spot rate, forward points and date to settlement. Valuation models used by the pricing service can change from period to period, depending on the appropriate observable inputs that are available at the balance sheet date to price a security. Level 3 Securities The Company’s investments classified as Level 3 as of December 31, 2021 and 2020 consisted of $141.9 million and $27.3 million, respectively, of fixed maturity and equity securities. As of December 31, 2021, $133.7 million of the common stock equity securities are priced using a model that incorporates time to exit, discount rate and volatility to calculate fair values which include a discount associated with lock up agreements. The remaining Level 3 fixed maturity securities and equities securities as of December 31, 2021 and 2020 were priced using non-binding third-party manager quotes, for which the underlying quantitative inputs are not developed by the Company and are not readily available or observable. Other investments and other liabilities: The Company prices swaptions and options using a Black-Scholes pricing model incorporating third-party market data, including swap volatility data. The Company prices credit default swaps using non-binding quotes obtained from third-party broker-dealers recognized as market participants. Inputs factored into the non-binding quotes include market observable trades related to the actual credit default swap being priced, trades in comparable credit default swaps, quality of the issuer, structure and liquidity. The fair value of the contingent consideration is estimated using a discounted cash flow model. Inputs may include future business performance, earn out caps, and applicable discount rates. A non-pricing service source prices certain derivatives using a model with inputs including the time to expiration, the notional amount, the strike price, the forward rate, implied volatility and the discount rate. Management evaluates the following factors in order to determine whether the market for a financial asset is inactive. The factors include: • whether there are few recent transactions, • whether little information is released publicly, • whether the available prices vary significantly over time or among market participants, • whether the prices are stale (i.e., not current), and • the magnitude of the bid-ask spread. Illiquidity did not have a material impact in the fair value determination of the Company’s financial assets as of December 31, 2021 or 2020. The Company generally obtains one price for each financial asset. The Company performs a periodic analysis to assess if the evaluated prices represent a reasonable estimate of the financial assets’ fair values. This process involves quantitative and qualitative analysis and is overseen by investment and accounting professionals. Examples of procedures performed include initial and on-going review of pricing service methodologies, review of the prices received from the pricing service, review of pricing statistics and trends, and comparison of prices for certain securities with two different appropriate price sources for reasonableness. Following this analysis, the Company generally uses the best estimate of fair value based upon all available inputs. On infrequent occasions, a non-pricing service source may be more familiar with the market activity for a particular security than the pricing service. In these cases the price used is taken from the non-pricing service source. The pricing service provides information to indicate which securities were priced using market observable inputs so that the Company can properly categorize the Company’s financial assets in the fair value hierarchy. Disclosures for Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The Company also measures the fair value of certain assets and liabilities, generally on an annual basis, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include commercial mortgage loans, equity investments accounted for under the measurement alternative, goodwill and finite-lived intangible assets. In 2021 and 2020, as a result of third-party market observable transactions that were of the same issuer and determined to be similar, the Company marked certain of its equity investments accounted for under the measurement alternative to fair value. The carrying value of investments under the measurement alternative marked to fair value on a non-recurring basis as of December 31, 2021 and 2020 was $41.8 million and $14.1 million, respectively. Given the significant unobservable inputs involved in valuation of these investments, they are classified in Level 3 of the fair value hierarchy. Generally, these valuations utilize the market approach, or an option pricing model backsolve method, which is a valuation approach that can be used to determine the value of common shares for companies with complex capital structures in which there have not been any recent transactions involving common shares. Inputs include capitalization tables, investment past and future performance projections, time to exit, discount rate and volatility based upon an appropriate industry group. For the year ended December 31, 2021, the Company recorded fair value increases of $25.1 million related to four market observable transactions of four investments and a fair value decrease of $0.8 million related to one market observable transaction. For the year ended December 31, 2020, the Company recorded fair value increases of $10.5 million related to two market observable transactions for one investment. In 2021 and 2020, as a result of a qualitative analysis indicating an impairment existed, the Company performed a quantitative analysis utilizing a probability weighted scenario model and determined certain investments were impaired. Model inputs include capitalization tables, investment past and future company performance projections, and discount rate. Based upon model outputs, impairments of $1.0 million and $17.1 million were recorded for the years ended December 31, 2021 and 2020, respectively. Refer to Note 15 for the results of the 2021 goodwill impairment testing. Fair Value of Financial Instruments Disclosures The financial instruments guidance requires disclosure of fair value information about financial instruments, for which it is practicable to estimate such fair value. Therefore, it requires fair value disclosure for financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets. However, this guidance excludes certain financial instruments, including those related to insurance contracts and those accounted for under the equity method (such as partnerships). For the financial instruments included within the following financial assets and financial liabilities, the carrying value in the consolidated balance sheets equals or approximates fair value. Please refer to the Fair Values Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures section above for additional information on the financial instruments included within the following financial assets and financial liabilities and the methods and assumptions used to estimate fair value: • Cash and cash equivalents; • Fixed maturity securities; • Equity securities; • Short-term investments; • Other investments; • Other assets; • Assets held in separate accounts; • Other liabilities; and • Liabilities related to separate accounts. In estimating the fair value of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets, the Company used the following methods and assumptions: Commercial mortgage loans on real estate : The fair value of commercial mortgage loans on real estate utilizes a third-party matrix pricing model. For fixed rate loans, the matrix process uses a yield buildup approach to create a pricing yield, with components for base yield, credit quality spread, property type spread, and a weighted average life spread. Floating rate loans are priced with a target quality spread over the swap curve. A dollar price for each loan is derived from the pricing yield or spread by a discounted cash flow methodology. Other investments: Other investments include low income housing tax credits, business debentures, and credit tenant loans which are recorded at cost or amortized cost, as well as policy loans. The carrying value reported for these investments approximates fair value. Other assets: The carrying value of dealer loans approximates fair value. Policy reserves under investment products : The fair values for the Company’s policy reserves under investment products are determined using discounted cash flow analysis. Key inputs to the valuation include projections of policy cash flows, reserve runoff, market yields and risk margins. Funds held under reinsurance: The carrying value reported approximates fair value due to the short maturity of the instruments. Debt: The fair value of debt is based upon matrix pricing performed by the pricing service utilizing the standard inputs. The following tables disclose the carrying value, fair value and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of the dates indicated: December 31, 2021 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 256.5 $ 266.0 $ — $ — $ 266.0 Other investments 4.2 4.2 2.0 — 2.2 Other assets 24.9 24.9 — — 24.9 Total financial assets $ 285.6 $ 295.1 $ 2.0 $ — $ 293.1 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 8.5 $ 9.6 $ — $ — $ 9.6 Funds held under reinsurance 364.2 364.2 364.2 — — Debt 2,202.5 2,456.3 — 2,456.3 — Total financial liabilities $ 2,575.2 $ 2,830.1 $ 364.2 $ 2,456.3 $ 9.6 December 31, 2020 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 138.3 $ 152.3 $ — $ — $ 152.3 Other investments 52.1 52.1 14.4 — 37.7 Other assets 23.3 23.3 — — 23.3 Total financial assets $ 213.7 $ 227.7 $ 14.4 $ — $ 213.3 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 70.6 $ 85.4 $ — $ — $ 85.4 Funds held under reinsurance 358.6 358.6 358.6 — — Debt 2,252.9 2,540.0 — 2,540.0 — Total financial liabilities $ 2,682.1 $ 2,984.0 $ 358.6 $ 2,540.0 $ 85.4 (1) Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the tables above. |
Premiums and Accounts Receivabl
Premiums and Accounts Receivable | 12 Months Ended |
Dec. 31, 2021 | |
Premiums Receivable Disclosure [Abstract] | |
Premiums and Accounts Receivable | Premiums and Accounts Receivable Receivables are reported net of an allowance for uncollectible amounts. A summary of such receivables is as follows as of the dates indicated: December 31, 2021 2020 Insurance premiums receivable $ 1,878.0 $ 1,484.2 Other receivables 73.9 78.0 Allowance for credit losses (9.4) (13.3) Total $ 1,942.5 $ 1,548.9 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense (benefit) were as follows for the periods indicated: Years Ended December 31, 2021 2020 2019 Pre-tax income: Domestic $ 629.7 $ 443.1 $ 414.7 Foreign 153.3 137.7 40.0 Total pre-tax income $ 783.0 $ 580.8 $ 454.7 Years Ended December 31, 2021 2020 2019 Current expense (benefit): Federal and state $ 1.7 $ (180.8) $ (7.8) Foreign 36.1 38.8 55.3 Total current expense (benefit) 37.8 (142.0) 47.5 Deferred expense (benefit): Federal and state 123.4 192.0 98.0 Foreign 8.3 10.4 2.8 Total deferred expense (benefit) 131.7 202.4 100.8 Total income tax expense (benefit) $ 169.5 $ 60.4 $ 148.3 The provision for foreign taxes includes amounts attributable to income from U.S. possessions that are considered foreign under U.S. tax laws. International operations of the Company are subject to income taxes imposed by the jurisdiction in which they operate. A reconciliation of the federal income tax rate to the Company’s effective income tax rate follows for the periods indicated: Years Ended December 31, 2021 2020 2019 Federal income tax rate: 21.0 % 21.0 % 21.0 % Reconciling items: Non-taxable investment income (0.2) (0.2) (0.5) Foreign earnings (1) 1.0 1.4 1.0 Non-deductible compensation 0.7 0.7 0.8 Change in liability for prior year tax (0.4) (0.5) 0.1 Change in valuation allowance (2) (0.2) 1.2 10.7 Net operating loss carryback - CARES Act (3) — (13.7) — Other (0.3) 0.5 (0.5) Effective income tax rate: 21.6 % 10.4 % 32.6 % (1) Results for 2021, 2020, and 2019 primarily include the impact of foreign earnings taxed at different rates. (2) The change in valuation allowance in 2019 is primarily related to the valuation allowance of $49.7 million established on the deferred taxes that arose related to losses incurred on our investment in Iké. The change in valuation allowance in 2020 is primarily related to an additional valuation allowance of $6.7 million related to Iké. (3) The CARES Act includes a five year net operating loss (“NOL”) carryback provision, which enabled the Company to benefit from certain losses and remeasure certain deferred tax assets and liabilities at the former federal tax rate of 35%. In 2020, the Company recorded a tax benefit related to the NOL carryback provision. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019 is as follows: Years Ended December 31, 2021 2020 2019 Balance at beginning of year $ (15.6) $ (12.5) $ (11.8) Additions based on tax positions related to the current year (0.6) (0.5) (0.5) Reductions based on tax positions related to the current year — — — Additions for tax positions of prior years (5.9) (2.7) (0.4) Reductions for tax positions of prior years 3.6 0.1 0.2 Lapses — — — Balance at end of year $ (18.5) $ (15.6) $ (12.5) Total unrecognized tax benefits of $19.9 million, $17.9 million and $14.0 million for the years ended December 31, 2021, 2020, and 2019, respectively, which includes interest and penalties, would impact the Company’s consolidated effective tax rate if recognized. The liability for unrecognized tax benefits is included in accounts payable and other liabilities on the consolidated balance sheets. The Company’s continuing practice is to recognize interest expense related to income tax matters in income tax expense. During the years ended December 31, 2021, 2020, and 2019, the Company recognized approximately $(0.1) million, $1.5 million and $0.7 million, respectively, of interest expense (benefit) related to income tax matters. The Company had $1.7 million, $1.8 million and $0.8 million of interest accrued as of December 31, 2021, 2020 and 2019, respectively. The Company had no penalties accrued as of December 31, 2021 and $0.8 million of penalties accrued as of December 31, 2020 and 2019. The Company does not anticipate any significant increase or decrease of unrecognized tax benefit within the next 12 months. The Company and its subsidiaries file income tax returns in the U.S. and various state and foreign jurisdictions. The Company has substantially concluded all U.S. federal income tax matters for years through 2015. Substantially all non-U.S. income tax matters have been concluded for years through 2010, and all state and local income tax matters have been concluded for years through 2008. The tax effects of temporary differences that result in significant deferred tax assets and deferred tax liabilities are as follows as of the dates indicated: December 31, 2021 2020 Deferred Tax Assets Policyholder and separate account reserves $ 642.2 $ 720.6 Net operating loss carryforwards 78.8 53.8 Investments, net 9.4 7.3 Credit carryforwards 26.3 32.8 Employee and post-retirement benefits 17.3 25.5 Compensation related 37.5 29.8 Capital loss carryforwards 0.3 9.8 Other 47.1 47.6 Total deferred tax assets 858.9 927.2 Less valuation allowance (25.1) (27.6) Deferred tax assets, net of valuation allowance 833.8 899.6 Deferred Tax Liabilities Deferred acquisition costs (1,325.8) (1,266.5) Net unrealized appreciation on securities (90.1) (126.5) Intangible assets (101.1) (106.0) Total deferred tax liabilities (1,517.0) (1,499.0) Net deferred income tax liabilities $ (683.2) $ (599.4) A cumulative valuation allowance of $25.1 million existed as of December 31, 2021 based on management’s assessment that it is more likely than not that certain deferred tax assets attributable to international subsidiaries will not be realized. The Company’s ability to realize deferred tax assets depends on its ability to generate sufficient taxable income of the same character within the carryback or carryforward periods. In assessing future taxable income, the Company considered all sources of taxable income available to realize its deferred tax asset, including the future reversal of existing temporary differences, future taxable income exclusive of reversing temporary differences and carryforwards, taxable income in carryback years and tax-planning strategies. If changes occur in the assumptions underlying the Company’s tax planning strategies or in the scheduling of the reversal of the Company’s deferred tax liabilities, the valuation allowance may need to be adjusted in the future. Other than for certain wholly owned Canadian and Latin American subsidiaries, the Company plans to indefinitely reinvest the earnings in other jurisdictions. Under current U.S. tax law, no material income taxes are anticipated on future repatriation of earnings. Therefore, deferred taxes have not been provided . Global intangible low taxed income (“GILTI”): The TCJA creates a new requirement that certain income (i.e., GILTI) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder. GILTI is the excess of the U.S. shareholder’s “net CFC tested income” over 10% of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder. Under GAAP, the Company is allowed to make an accounting policy election of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred or (2) factoring such amounts into the company’s measurement of its deferred taxes. The Company has elected to recognize the current tax on GILTI as a period expense in the period the tax is incurred. Under this policy, the Company has not provided deferred taxes related to temporary differences that upon their reversal will affect the amount of income subject to GILTI in the period. The GILTI current period expense is immaterial. The net operating loss carryforwards by jurisdiction are as follows as of the dates indicated: December 31, 2021 2020 Federal net operating loss carryforwards (1) $ 203.6 $ 66.8 Foreign net operating loss carryforwards (2) $ 142.1 $ 162.4 (1) Of the $203.6 million as of December 31, 2021, $135.1 million of net operating losses expires between 2035 and 2041, and $68.5 million has an unlimited carryforward. (2) Of the $142.1 million as of December 31, 2021, $45.6 million expires between 2022 and 2037, and $96.5 million has an unlimited carryforward. |
Deferred Acquisition Costs
Deferred Acquisition Costs | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Acquisition Costs | Deferred Acquisition Costs Information about deferred acquisition costs is as follows as of the dates indicated: December 31, 2021 2020 2019 Beginning balance $ 7,388.0 $ 6,121.5 $ 4,203.4 Costs deferred 4,691.0 4,022.9 4,022.0 Amortization (3,268.0) (2,756.4) (2,103.9) Ending balance $ 8,811.0 $ 7,388.0 $ 6,121.5 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following as of the dates indicated: December 31, 2021 2020 Land $ 10.0 $ 10.0 Buildings and improvements 235.5 240.1 Furniture, fixtures and equipment 129.9 123.9 Software 541.6 406.5 Total 917.0 780.5 Less accumulated depreciation (355.6) (334.4) Total $ 561.4 $ 446.1 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company has assigned goodwill to its reporting units for impairment testing purposes. The Company has four reporting units consisting of three reporting units within the Global Lifestyle operating segment, including Connected Living, Global Automotive and Global Financial Services and Other, as well as Global Housing (whereby the reporting unit for impairment testing was at the operating segment level). The Corporate and Other segment is not assigned any goodwill. Quantitative Impairment Testing For the annual October 1, 2021 goodwill impairment test, the Company performed quantitative tests for all reporting units with goodwill (Connected Living, Global Automotive, Global Financial Services and Other and Global Housing). The following describes the various valuation methodologies used in the quantitative test which were weighted using our judgment as to which were the most representative in determining the estimated fair value of the reporting units. A Dividend Discount Method (“DDM”) was used to value each of the reporting units based upon the present value of expected cash flows available for distribution over future periods. Cash flows were estimated for a discrete projection period based on detailed assumptions, and a terminal value was calculated to reflect the value attributable to cash flows beyond the discrete period. Cash flows and the terminal value were then discounted using each reporting unit’s estimated cost of capital. The estimated fair value of each reporting unit represented the sum of the discounted cash flows and terminal value. A Guideline Company Method, in which we identified a group of peer companies that have similar operations to the reporting unit, was used; however, direct peer comparisons for the reporting units were limited given the diversity of the products and services within the businesses. This method was used to value each reporting unit based upon its relative performance to peer companies, based on several measures, including price to trailing 12-month earnings, price to projected earnings, price to tangible net worth and return on equity. A Guideline Transaction Method was not used in the valuations due to the impact of COVID-19 on the markets in 2020 and the absence of sufficient observable transactions post COVID-19. While DDM and Guideline Company valuation methodologies were considered in assessing fair value, the DDM was weighted more heavily since management believes that expected cash flows are the most important factor in the valuation of a business enterprise, and also considering the lack of directly-comparable peer companies. Based on the quantitative assessment performed as of October 1, 2021, the Company concluded that the estimated fair values of each reporting unit exceeded their respective book values and therefore determined that goodwill was not impaired. A roll forward of goodwill by reportable segment is provided below as of and for the years indicated: Global Lifestyle (1) Global Housing Consolidated Balance at December 31, 2019 (2) $ 1,825.9 $ 379.5 $ 2,205.4 Acquisitions (3) 374.6 — 374.6 Foreign currency translation and other 9.3 — 9.3 Balance at December 31, 2020 (2) 2,209.8 379.5 2,589.3 Acquisitions (3) (10.4) — (10.4) Foreign currency translation and other (7.3) — (7.3) Balance at December 31, 2021 (2) $ 2,192.1 $ 379.5 $ 2,571.6 (1) As of December 31, 2021, $698.7 million, $1,420.5 million and $72.9 million of goodwill was assigned to the Connected Living, Global Automotive and Global Financial Services and Other reporting unit, respectively. As of December 31, 2020, $715.2 million, $1,421.3 million and $73.3 million of goodwill was assigned to the Connected Living, Global Automotive and Global Financial Services and Other reporting unit, respectively. (2) Consolidated goodwill reflects 1,405.9 million of accumulated impairment losses at December 31, 2021 and 2020, respectively, and $1,268.1 million of accumulated impairment losses at December 31, 2019. |
VOBA and Other Intangible Asset
VOBA and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
VOBA and Other Intangible Assets | VOBA and Other Intangible Assets VOBA Information about VOBA is as follows for the periods indicated: Years Ended December 31, 2021 2020 2019 Beginning balance $ 1,152.2 $ 1,993.7 $ 3,140.8 Additions (adjustments) — — (4.0) Amortization, net of interest accrued (567.9) (835.7) (1,121.0) Foreign currency translation and other (0.9) (5.8) (22.1) Ending balance $ 583.4 $ 1,152.2 $ 1,993.7 As of December 31, 2021, the outstanding VOBA balance is related to the 2018 acquisition of TWG within the Global Lifestyle segment. As of December 31, 2021, the estimated amortization of VOBA for the next five years and thereafter is as follows: Year Amount 2022 $ 322.5 2023 177.8 2024 76.2 2025 3.3 2026 1.4 Thereafter 2.2 Total $ 583.4 Other Intangible Assets Information about other intangible assets is as follows as of the dates indicated: As of December 31, 2021 2020 Carrying Accumulated Net Other Carrying Accumulated Net Other Customer related $ 617.4 $ (329.7) $ 287.7 $ 519.5 $ (306.2) $ 213.3 Contract based (1) 420.3 (76.5) 343.8 432.0 (51.0) 381.0 Technology based 121.7 (39.5) 82.2 117.6 (22.3) 95.3 Marketing related 10.3 (4.8) 5.5 10.1 (3.5) 6.6 Total $ 1,169.7 $ (450.5) $ 719.2 $ 1,079.2 $ (383.0) $ 696.2 (1) As of December 31, 2021 and 2020, contract based intangibles included $12.1 million of indefinite-lived intangible assets. Total amortization of other intangible assets for the years ended December 31, 2021, 2020 and 2019 was $88.9 million, $73.9 million and $62.2 million, respectively. Other intangible assets that have finite lives, including customer related, contract based, technology based and marketing related, are amortized over their useful lives. The estimated amortization of other intangible assets with finite lives for the next five years and thereafter is as follows: Year Amount 2022 $ 98.1 2023 97.9 2024 93.8 2025 89.6 2026 78.4 Thereafter 249.3 Total other intangible assets with finite lives $ 707.1 |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2021 | |
Insurance Loss Reserves [Abstract] | |
Reserves | Reserves Short Duration Contracts Continuing Business (Global Lifestyle and Global Housing) The Company’s short duration contracts include products and services within the Global Lifestyle and Global Housing segments. The main product lines for Global Lifestyle include extended service contracts, vehicle service contracts, mobile device protection and credit insurance, and for Global Housing the main product lines include lender-placed homeowners and flood, Multifamily Housing and manufactured housing. Total IBNR reserves are determined by subtracting case basis incurred losses from the ultimate loss and loss adjustment expense estimates. Ultimate loss and loss adjustment expenses are estimated utilizing generally accepted actuarial loss reserving methods. The reserving methods employed by the Company include the Chain Ladder, Munich Chain Ladder and Bornhuetter-Ferguson methods. Reportable catastrophe losses are analyzed and reserved for separately using a frequency and severity approach. The methods involve aggregating paid and case-incurred loss data by accident quarter (or accident year) and accident age for each product grouping. As the data ages, loss development factors are calculated that measure emerging claim development patterns between reporting periods. By selecting loss development factors indicative of remaining development, known losses are projected to an ultimate incurred basis for each accident period. The underlying premise of the Chain Ladder method is that future claims development is best estimated using past claims development, whereas the Bornhuetter-Ferguson method employs a combination of past claims development and an estimate of ultimate losses based on an expected loss ratio. The Munich Chain Ladder method takes into account the correlations between paid and incurred development in projecting future development factors and is typically more applicable to products experiencing greater variability in incurred to paid ratios. The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of the different methods that are applied consistently each period considering significant assumptions, including projected loss development factors and expected loss ratios. 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. Disposed and Runoff Short Duration Insurance Lines Short duration contracts within the disposed business include certain medical policies no longer offered and Assurant Employee Benefits policies disposed of via reinsurance. Reserves and reinsurance recoverables for previously disposed business are included in the consolidated balance sheets. See Note 18 for additional information. The Company has runoff exposure to asbestos, environmental and other general liability claims arising from the Company’s participation in certain reinsurance pools from 1971 through 1985 from contracts discontinued many years ago. The amount of carried case reserves are based on recommendations of the various pool managers. Using information currently available, and after consideration of the reserves reflected in the consolidated financial statements, the Company does not believe or expect that changes in reserve estimates for these claims are likely to be material. Long Duration Contracts Disposed and Runoff Long Duration Insurance Lines The Company has long-term care exposures which are fully reinsured within the disposed business. The Company also has universal life and annuity products that are no longer offered and are in runoff. Reserves have been established based on the following assumptions. Interest rates credited on annuities were at guaranteed rates, ranging from 3.5% to 4.0%, except for a limited number of policies with guaranteed crediting rates of 4.5%. All annuity policies are past the surrender charge period. Crediting interest rates on universal life fund are at guaranteed rates of 4.0% to 4.1%. Universal life funds are subject to surrender charges that vary by product, age, sex, year of issue, risk class, face amount and grade to zero 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 are comprised of case and 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 expenses 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. Years Ended December 31, 2021 2020 2019 Claims and benefits payable, at beginning of year $ 1,610.3 $ 1,613.1 $ 1,606.3 Less: Reinsurance ceded and other (849.4) (855.1) (874.2) Net claims and benefits payable, at beginning of year 760.9 758.0 732.1 Incurred losses and loss adjustment expenses related to: Current year 2,202.2 2,305.4 2,401.6 Prior years (6.5) (40.5) (15.9) Total incurred losses and loss adjustment expenses 2,195.7 2,264.9 2,385.7 Paid losses and loss adjustment expenses related to: Current year 1,679.2 1,770.6 1,857.3 Prior years 505.1 491.4 502.5 Total paid losses and loss adjustment expenses 2,184.3 2,262.0 2,359.8 Transfer to liabilities held for sale (Note 4) (2.0) — — Net claims and benefits payable, at end of year 770.3 760.9 758.0 Plus: Reinsurance ceded and other (1) 825.6 849.4 855.1 Claims and benefits payable, at end of year (1) $ 1,595.9 $ 1,610.3 $ 1,613.1 (1) Includes reinsurance recoverables and claims and benefits payable of $143.8 million, $95.8 million and $86.8 million as of December 31, 2021, 2020 and 2019, respectively, which were ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program. A comparison of net (favorable) unfavorable prior year development is shown below across the Company’s current and former segments and businesses. Prior Year Incurred Loss Development for the Years Ending December 31, 2021 2020 2019 Global Lifestyle $ (35.2) $ (27.6) $ (24.0) Global Housing 36.5 (8.0) 13.6 All Other (7.8) (4.9) (5.5) Total $ (6.5) $ (40.5) $ (15.9) The Company experienced net favorable loss development in each of the years ended December 31, 2021, 2020 and 2019. Global Lifestyle experienced similar amounts of net favorable development in 2021, 2020 and 2019 of $35.2 million, $27.6 million, and $24.0 million, respectively. Global Housing experienced net unfavorable loss development of $36.5 million in 2021 primarily due to reserve strengthening for small commercial liability claims in runoff from accident years 2018 and 2019 and from lender-placed homeowners insurance due to longer claim settlement lags and inflationary impacts. Global Housing experienced net favorable development of $8.0 million in 2020 primarily attributable to prior year reportable catastrophes. Global Housing experienced net unfavorable development in 2019 primarily due to higher than expected losses from Hurricane Maria (2017). A more detailed explanation of the claims development from Global Lifestyle and Global Housing is presented below, including claims development by accident year. Reserves for the longer-tail property and casualty coverages included in All Other (e.g., asbestos, environmental and other general liability) had no material changes in estimated amounts for claims incurred in prior years. The following tables represent the Global Lifestyle and Global Housing segments’ incurred claims and allocated claim adjustment expenses, net of reinsurance, less cumulative paid claims and allocated claim adjustment expenses, net of reinsurance to reconcile to total claims and benefits payable, net of reinsurance as of December 31, 2021. The tables provide undiscounted information about claims development by accident year for the significant short duration claims and benefits payable balances. The following factors are relevant to the loss development information included in the tables below: • Table Presentation: The tables are organized by accident year. For certain categories of claims and for reinsurance recoverables, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us. These reclassifications are shown as development in the respective years in the tables below. Predominantly, the Company writes short-tail lines that are written on an occurrence basis. Five years of claims development information is provided since most of the claims are fully developed after five years, as shown in the average payout ratio tables. • Table Groupings: The groupings have homogeneous risk characteristics with similar development patterns and would generally be subject to similar trends and reflect our reportable segments. • Impact of Reinsurance: The reinsurance program varies by exposure type. Historically, the Company has leveraged facultative and treaty reinsurance, both on pro-rata and excess of loss basis. The reinsurance program may change from year to year, which may affect the comparability of the data presented in the tables. • IBNR: Includes development from past reported losses in IBNR. • Information excluded from tables: Unallocated loss adjustment expenses are excluded from the tables. • Foreign exchange rates: The loss development for operations outside of the U.S. is presented for all accident years using the current exchange rates at December 31, 2021. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends. • Acquisitions: Includes acquisitions from all accident years presented in the tables. For purposes of this disclosure, we have applied the retrospective method for the acquired reserves, including incurred and paid claim development histories throughout the relevant tables. It should be noted that historical reserves for the acquired business were established by the acquired companies using methods, assumptions and procedures then in effect which may differ from our current reserving bases. Accordingly, it may not be appropriate to extrapolate future reserve adequacy based on the aggregated historical results shown in the tables. • Dispositions: Excludes dispositions from all accident years presented in the tables. • Claim counts: Considers a reported claim to be one claim for each claimant or feature for each loss occurrence. Reported claims for losses from assumed reinsurance contracts are not available and hence not included in the reported claims. There are limitations that should be considered on the reported claim count data in the tables below, including: ◦ Claim counts are presented only on a reported (not an ultimate) basis; ◦ The tables below include lines of business and geographies at a certain aggregated level which may indicate different frequency and severity trends and characteristics, and may not be as meaningful as the claim count information related to the individual products within those lines of business and geographies; ◦ Certain lines of business are more likely to be subject to occurrences involving multiple claimants and features, which can distort measures based on the reported claim counts in the table below; and ◦ Reported claim counts are not adjusted for ceded reinsurance, which may distort the measure of frequency or severity. • Required Supplemental Information: The information about incurred and paid loss development for all periods preceding year ended December 31, 2021 and the related historical claims payout percentage disclosure is unaudited and is presented as required supplementary information. Global Lifestyle Net Claims Development Tables Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2021 Years Ended December 31, Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Claims (2) Accident Year 2017 Unaudited 2018 Unaudited 2019 Unaudited 2020 Unaudited 2021 2017 $ 1,201.9 $ 1,178.6 $ 1,178.3 $ 1,178.4 $ 1,178.4 $ 0.2 10,230,625 2018 1,374.5 1,350.2 1,343.8 1,343.4 1.9 9,722,793 2019 1,522.2 1,502.2 1,498.7 6.0 10,119,630 2020 1,455.2 1,424.0 8.6 10,104,237 2021 1,348.8 152.6 9,452,388 Total $ 6,793.3 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2017 Unaudited 2018 Unaudited 2019 Unaudited 2020 Unaudited 2021 2017 $ 980.7 $ 1,163.9 $ 1,170.5 $ 1,172.7 $ 1,174.6 2018 1,149.6 1,324.5 1,334.4 1,337.6 2019 1,297.3 1,481.8 1,488.9 2020 1,229.8 1,407.1 2021 1,120.9 Total $ 6,529.1 Outstanding claims and benefits payable before 2017, net of reinsurance 8.8 Claims and benefits payable, net of reinsurance $ 273.0 Average Annual Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Unaudited Year 2 Unaudited Year 3 Unaudited Year 4 Unaudited Year 5 Unaudited 85.6% 13.4% 0.6% 0.2% 0.2% (1) Includes a provision for development on case reserves. (2) Number of paid claims plus open (pending) claims. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that the Company’s reinsurance includes non-proportional treaties. Using the December 31, 2021 foreign exchange rates for all years, Global Lifestyle experienced $35.2 million of net favorable loss development for the year ended December 31, 2021, compared to net favorable loss development of $27.6 million and $24.0 million for the years ended December 31, 2020 and 2019, respectively. These amounts are based on the change in net incurred losses from the claims development tables above, plus additional impacts from accident years prior to 2017. Many of these contracts and products contain retrospective commission (profit sharing) provisions that would result in offsetting increases or decreases in expense dependent on if the development was favorable or unfavorable. For the year ended December 31, 2021, the net favorable development from Global Lifestyle was attributable to nearly all lines of business across most of the Company’s regions with a concentration on more recent accident years and based on emerging evaluations regarding loss experience each period. The release of reserves associated with potential COVID-19-related claims that have not materialized was a contributing factor. For the year ended December 31, 2020, the net favorable development from Global Lifestyle was also attributable to nearly all lines of business across most of the Company’s regions. Growth in new business contributed to the net favorable development in 2020, as more claims data supported an adjustment to initial loss estimates. Growth areas that contributed to the net favorable development included vehicle service contracts sold in North America and extended service contracts sold across Asia Pacific. For the year ended December 31, 2019, favorable development was primarily from mobile device protection products and extended service contract products written in North America. In particular, new mobile business was favorable relative to prior expectations. Foreign exchange rate movements over time caused some of the reserve differences shown in the reserve roll forward and prior year incurred loss tables to vary from what is reflected in the claims development tables for Global Lifestyle. The impacts by year were $(0.7) million, $0.5 million, and $(0.4) million for the years ended December 31, 2021, 2020 and 2019, respectively. The claims development tables above remove the impact due to changing foreign exchange rates over time for comparability. Global Housing Net Claims Development Tables Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2021 Years Ended December 31, Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Claims (2) Accident Year 2017 Unaudited 2018 Unaudited 2019 Unaudited 2020 Unaudited 2021 2017 $ 964.5 $ 976.2 $ 991.1 $ 986.6 $ 990.0 $ 5.8 252,679 2018 918.1 916.3 916.3 926.1 8.1 202,534 2019 854.1 852.0 870.7 30.5 202,734 2020 858.5 861.9 61.0 209,337 2021 842.7 224.8 193,319 Total $ 4,491.4 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2017 Unaudited 2018 Unaudited 2019 Unaudited 2020 Unaudited 2021 2017 $ 700.7 $ 902.0 $ 942.8 $ 962.8 $ 978.3 2018 622.5 854.6 893.6 908.9 2019 546.3 762.7 818.4 2020 557.0 770.9 2021 547.6 Total $ 4,024.1 Outstanding claims and benefits payable before 2017, net of reinsurance 5.0 Claims and benefits payable, net of reinsurance $ 472.3 Average Annual Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Unaudited Year 2 Unaudited Year 3 Unaudited Year 4 Unaudited Year 5 Unaudited 67.3% 24.2% 5.0% 1.9% 1.6% (1) Includes a provision for development on case reserves. (2) Number of paid claims plus open (pending) claims. Claim frequency is determined at a claimant reporting level. Depending on the nature of the product and related coverage triggers, it is possible for a claimant to contribute multiple claim counts in a given policy period. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that the Company’s reinsurance includes non-proportional treaties. For the year ended December 31, 2021, Global Housing experienced $36.5 million of net unfavorable loss development, compared to net favorable loss development of $8.0 million and net unfavorable loss development of $13.6 million for the years ended December 31, 2020 and 2019, respectively. These amounts are based on the change in net incurred losses from the claims development data above, plus additional impacts from accident years prior to 2017. For the year ended December 31, 2021, the net unfavorable development for Global Housing was attributable to $21.9 million from small commercial, $14.2 million from lender-placed homeowners insurance, and $7.0 million from sharing economy products, partially offset by net favorable development from other products. The Company stopped writing new small commercial business in 2019 and the claims are in runoff. Reserves were strengthened for the 2018 and 2019 accident years following unfavorable trends in case-incurred development on prior reported liability claims and social inflation concerns. The net unfavorable development for lender-placed homeowners insurance was primarily attributable to accident year 2020 and was impacted by longer claim settlement lags for water damage claims and inflation. The net unfavorable development for sharing economy products was due to reserve strengthening associated with prior reported claims and was across multiple accident years. For the year ended December 31, 2020, the net favorable development for Global Housing was primarily attributable to a reserve release from Hurricane Maria (2017) in response to settling claims for less than expected. This follows two years of reserve increase for Maria, where severity trends had been outpacing initial assumptions. Net development excluding reportable catastrophes was flat as favorable claim frequency trends on lender-placed homeowners insurance and other products were offset by unfavorable development from sharing economy products. For the year ended December 31, 2019, Global Housing experienced net unfavorable development in accident year 2017, due to rising severity trends from Hurricane Maria leading to an $11.3 million increase. Reconciliation of the Disclosure of Net Incurred and Paid Claims Development to the Liability for Unpaid Claims and Benefits Payable December 31, 2021 Net outstanding liabilities Global Lifestyle $ 273.0 Global Housing 472.3 Other short-duration insurance lines (1) 15.2 Disposed business short-duration insurance lines (Assurant Health) 0.7 Claims and benefits payable, net of reinsurance 761.2 Reinsurance recoverable on unpaid claims Global Lifestyle (2) 428.0 Global Housing 289.2 Other short-duration insurance lines (1) 2.5 Disposed business short-duration insurance lines (Assurant Employee Benefits and Assurant Health) 18.1 Total reinsurance recoverable on unpaid claims 737.8 Insurance lines other than short-duration (3) 87.7 Unallocated claim adjustment expense 9.2 Total claims and benefits payable $ 1,595.9 (1) Asbestos and pollution reserves represents $17.9 million of the other short-duration insurance lines, with $2.5 million recoveries. (2) Disposed of property and casualty business represents $190.6 million of the $428.0 million in reinsurance recoverables for Global Lifestyle. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance In the ordinary course of business, the Company is involved in both the assumption and cession of reinsurance with non-affiliated companies. The following table provides details of the reinsurance recoverables balance as of the dates indicated: December 31, 2021 2020 Ceded future policyholder benefits and expense $ 338.4 $ 1,133.8 Ceded unearned premium 4,950.0 4,565.4 Ceded claims and benefits payable 821.8 846.2 Ceded paid losses 68.7 60.0 Total $ 6,178.9 $ 6,605.4 A key credit quality indicator for reinsurance is the A.M. Best Company (“A.M. Best”) financial strength ratings of the reinsurer. A.M. Best financial strength ratings are an independent opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. The A.M. Best ratings for the reinsurers in 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 following table provides the reinsurance recoverable as of December 31, 2021 grouped by A.M. Best financial strength ratings: A.M. Best Rating of Reinsurer Ceded future Ceded Ceded claims Ceded paid Total A++ or A+ $ 328.5 $ 82.5 $ 287.6 $ 10.7 $ 709.3 A or A- 4.4 117.8 61.5 13.0 196.7 B++ or B+ 5.5 17.9 2.3 0.1 25.8 Not Rated (1) 0.4 4,735.1 471.6 45.0 5,252.1 Total 338.8 4,953.3 823.0 68.8 6,183.9 Less: Allowance (0.4) (3.3) (1.2) (0.1) (5.0) Net reinsurance recoverable $ 338.4 $ 4,950.0 $ 821.8 $ 68.7 $ 6,178.9 (1) Not Rated ceded claims and benefits payable included reinsurance recoverables of $143.8 million as of December 31, 2021 which were ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program. A substantial portion of the Not Rated category is related to Global Lifestyle’s and Global Housing’s agreements to reinsure premiums and risks related to business generated by certain clients to the clients’ own captive insurance companies or to reinsurance subsidiaries in which the clients have an ownership interest. To mitigate exposure to credit risk for these reinsurers, the Company evaluates the financial condition of the reinsurer and typically holds substantial collateral (in the form of funds withheld, trusts and letters of credit) as security. The effect of reinsurance on premiums earned and benefits incurred was as follows for the periods indicated: Years Ended December 31, 2021 2020 2019 Long Short Total Long Short Total Long Short Total Direct earned premiums $ 96.6 $ 15,813.5 $ 15,910.1 $ 35.5 $ 14,876.5 $ 14,912.0 $ 38.4 $ 13,982.8 $ 14,021.2 Premiums assumed — 168.5 168.5 — 133.3 133.3 — 212.8 212.8 Premiums ceded (88.5) (7,418.0) (7,506.5) (26.4) (6,743.1) (6,769.5) (27.6) (6,247.6) (6,275.2) Net earned premiums $ 8.1 $ 8,564.0 $ 8,572.1 $ 9.1 $ 8,266.7 $ 8,275.8 $ 10.8 $ 7,948.0 $ 7,958.8 Direct policyholder benefits $ 322.2 $ 5,949.2 $ 6,271.4 $ 91.3 $ 5,581.6 $ 5,672.9 $ 198.8 $ 5,336.1 $ 5,534.9 Policyholder benefits assumed — 139.1 139.1 — 122.3 122.3 — 212.9 212.9 Policyholder benefits ceded (315.0) (3,899.8) (4,214.8) (84.9) (3,445.4) (3,530.3) (190.3) (3,171.8) (3,362.1) Net policyholder benefits $ 7.2 $ 2,188.5 $ 2,195.7 $ 6.4 $ 2,258.5 $ 2,264.9 $ 8.5 $ 2,377.2 $ 2,385.7 The Company had zero and $168.4 million of invested assets held in trusts or by custodians as of December 31, 2021 and 2020, respectively, for the benefit of others related to certain reinsurance arrangements. The Company utilizes ceded reinsurance for loss protection and capital management, client risk and profit sharing and business divestitures. Loss Protection and Capital Management As part of the Company’s overall risk and capacity management strategy, the Company purchases reinsurance for certain risks underwritten by the Company’s various segments, including significant individual or catastrophic claims. For those product lines where there is exposure to losses from catastrophe events, the Company closely monitors and manages its aggregate risk exposure by geographic area. The Company has entered into reinsurance treaties to manage exposure to these types of events. Segment Client Risk and Profit Sharing The Global Lifestyle and Global Housing segments write business produced by their clients, such as mobile providers, mortgage lenders and servicers, and financial institutions, and reinsure all or a portion of such business to insurance subsidiaries of some clients. Such arrangements allow significant flexibility in structuring the sharing of risks and profits on the underlying business. A substantial portion of Global Lifestyle’s and Global Housing’s reinsurance activities are related to agreements to reinsure premiums and risks related to business generated by certain clients to the clients’ own captive insurance companies or to reinsurance subsidiaries in which the clients have an ownership interest. Through these arrangements, the Company’s insurance subsidiaries share some of the premiums and risk related to client-generated business. When the reinsurance companies are not authorized to do business in the state of domicile of the Company’s insurance subsidiary, the Company’s insurance subsidiary generally obtains collateral, such as a trust or a letter of credit, from the reinsurance company or its affiliate in an amount equal to the outstanding reserves to obtain full statutory financial credit in the domiciliary state for the reinsurance. The Company’s reinsurance agreements do not relieve the Company from its direct obligation to its insureds. Thus, a credit exposure exists to the extent that any reinsurer is unable to meet the obligations assumed in the reinsurance agreements. To mitigate its exposure to reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers and typically holds substantial collateral (in the form of funds withheld, trusts and letters of credit) as security under the reinsurance agreements. Business Divestitures The Company has used reinsurance to sell certain businesses in the past because the businesses shared legal entities with operating segments that the Company retained. Assets supporting liabilities ceded relating to these businesses are mainly held in trusts. If the reinsurers became insolvent, the Company would be exposed to the risk that the assets in the trusts and/or the separate accounts, if any, would be insufficient to support the liabilities that would revert back to the Company. The reinsurance recoverables relating to these divestitures amounted to $625.7 million as of December 31, 2021, of which $410.2 million was attributable to John Hancock, which reinsures the long-term care business and has an A.M. Best financial strength rating of A+ with a stable outlook. In addition, the Company would be responsible for administering this business in the event of reinsurer insolvency. The Company does not currently have the administrative systems and capabilities to process this business. Accordingly, the Company would need to obtain those capabilities in the event of an insolvency of one or more of the reinsurers of these businesses. The Company might be forced to obtain such capabilities on unfavorable terms with a resulting material adverse effect on our results of operations and financial condition. As of December 31, 2021, the Company was not aware of any regulatory actions taken with respect to the solvency of the insurance subsidiaries of John Hancock and the Company has not been obligated to fulfill any of its obligations. John Hancock has paid its obligations when due and there have been no disputes. JALIC Reinsurance Recoverables Most of the $881.6 million reinsurance recoverables balance for JALIC, which is included in assets held for sale as of December 31, 2021 as described in Note 4, is reinsured with Employers Reassurance Corporation (“ERAC”), which is uncollateralized. A.M. Best withdrew its rating for ERAC in 2019. General Electric Company, the ultimate parent of ERAC, has a capital maintenance agreement in place to maintain ERAC’s risk-based capital (“RBC”) ratios at an acceptable regulatory level, which has been maintained in recent years through capital infusions into ERAC. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table shows the principal amount and carrying value of the Company’s outstanding debt, less unamortized discount and issuance costs as applicable, as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Principal Amount Carrying Value Principal Amount Carrying Value Floating Rate Senior Notes due March 2021 (1) $ — $ — $ 50.0 $ 50.0 4.00% Senior Notes due March 2023 (2) — — 350.0 348.9 4.20% Senior Notes due September 2023 300.0 299.0 300.0 298.4 4.90% Senior Notes due March 2028 300.0 297.5 300.0 297.2 3.70% Senior Notes due February 2030 350.0 347.3 350.0 347.0 2.65% Senior Notes due January 2032 350.0 346.4 — — 6.75% Senior Notes due February 2034 275.0 272.4 275.0 272.3 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (3) 400.0 395.9 400.0 395.4 5.25% Subordinated Notes due January 2061 250.0 244.0 250.0 243.7 Total Debt $ 2,202.5 $ 2,252.9 (1) The outstanding aggregate principal amount was repaid in January 2021. Prior to repayment, these senior notes bore floating interest at a rate equal to three-month LIBOR plus 1.25% per annum. (2) The outstanding aggregate principal amount was redeemed in full in July 2021. (3) Bears a 7.00% annual interest rate to March 2028 and an annual interest rate equal to three-month LIBOR plus 4.135% thereafter. For the years ended December 31, 2021, 2020 and 2019, interest expense was $111.8 million, $104.5 million and $110.6 million, respectively. Interest expense includes derivative related activities described in the interest rate derivatives section below. There was $33.9 million and $31.8 million of accrued interest at December 31, 2021 and 2020, respectively. Debt Issuances Senior Notes 2032 Senior Notes: In June 2021, the Company issued senior notes with an aggregate principal amount of $350.0 million, which bear interest at a rate of 2.65% per year, mature in January 2032 and were issued at a 0.158% discount to the public (the “2032 Senior Notes”). Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2022. Prior to October 15, 2031, the Company may redeem the 2032 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2032 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. In July 2021, the Company used the net proceeds from the sale of the 2032 Senior Notes, together with cash on hand, to redeem all of the $350.0 million outstanding aggregate principal amount of its 4.00% senior notes due March 2023 and to pay accrued interest, related premiums, fees and expenses, including a loss on extinguishment of debt of $20.7 million for the year ended December 31, 2021. 2030 Senior Notes: In August 2019, the Company issued senior notes with an aggregate principal amount of $350.0 million, which bear interest at a rate of 3.70% per year, mature in February 2030 and were issued at a 0.035% discount to the public (the “2030 Senior Notes”). Interest is payable semi-annually in arrears beginning in February 2020. Prior to November 2029, the Company may redeem the 2030 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2030 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. The Company used the net proceeds from the offering, together with cash on hand, to purchase $100.0 million of its 6.75% senior notes due 2034 in a cash tender offer, to redeem $250.0 million of its floating rate senior notes due 2021 (the “2021 Senior Notes”) and to pay related premiums, fees and expenses. In connection with the tender offer, the Company recognized a loss on extinguishment of debt of $31.4 million, primarily related to incremental consideration required to be paid to debtholders as a result of the interest rate differential over the remaining term as compared to current rates. Additionally, the Company recognized a $2.6 million loss from the settlement of the three exposure on the portion of the 2021 Senior Notes that were redeemed in September 2019. The $2.6 million loss was reclassified out of accumulated other comprehensive income and recorded through interest expense. In connection with the issuance of the 2030 Senior Notes, the Company recognized $3.0 million of interest expense related to premiums paid for a series of derivative transactions that were entered into in July 2019 to hedge the related interest rate risk. In March 2018, the Company issued the following three series of senior notes with an aggregate principal amount of $900.0 million: • 2021 Senior Notes: The first series of senior notes was $300.0 million in principal amount, bore a floating interest rate equal to three-month LIBOR plus 1.25% and was to mature in March 2021. Interest on the 2021 Senior Notes was payable quarterly. Commencing on or after March 2019, the Company could redeem the 2021 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. In August 2019, the Company redeemed $250.0 million of the $300.0 million then outstanding aggregate principal amount of the 2021 Senior Notes, plus accrued and unpaid interest to the redemption date. In January 2021, the Company redeemed the remaining $50.0 million outstanding aggregate principal amount of the 2021 Senior Notes, plus accrued and unpaid interest to the redemption date, in advance of the original maturity in March 2021. • 2023 Senior Notes: The second series of senior notes is $300.0 million in principal amount, bears interest at 4.20% per year, matures in September 2023 and was issued at a 0.233% discount to the public (the “2023 Senior Notes”). Interest on the 2023 Senior Notes is payable semi-annually. Prior to August 2023, the Company may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. • 2028 Senior Notes: The third series of senior notes is $300.0 million in principal amount, bears interest at 4.90% per year, matures in March 2028 and was issued at a 0.383% discount to the public (the “2028 Senior Notes”). Interest on the 2028 Senior Notes is payable semi-annually. Prior to December 2027, the Company may redeem the 2028 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2028 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. The interest rate payable on each of the 2023 Senior Notes, 2028 Senior Notes, 2030 Senior Notes and 2032 Senior Notes will be subject to adjustment from time to time, if either Moody’s Investor Service, Inc. (“Moody’s”) or S&P Global Ratings, a division of S&P Global Inc. (“S&P”) downgrades the credit rating assigned to such series of senior notes to Ba1 or below or to BB+ or below, respectively, or subsequently upgrades the credit ratings once the senior notes are at or below such levels. The following table details the increase in interest rate over the issuance rate by rating with the impact equal to the sum of the number of basis points next to such rating for a maximum increase of 200 basis points over the issuance rate: Rating Agencies Rating 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. In March 2013, the Company issued two series of senior notes, one of which was repaid at maturity in March 2018. The second series was $350.0 million in aggregate principal amount, was issued at a 0.365% discount to the public, bore interest at 4.00% per year and was to mature in March 2023 (the “2023 Senior Notes”). In July 2021, we used the proceeds from the issuance of the 2032 Senior Notes, along with cash on hand, to redeem all of the $350.0 million outstanding aggregate principal amount of the 2023 Senior Notes. A loss on extinguishment of debt of $20.7 million was reported for the year ended December 31, 2021. In February 2004, the Company issued senior notes with an aggregate principal amount of $475.0 million at a 0.61% discount to the public, which bear interest at 6.75% per year and matures in February 2034. Interest is payable semi-annually. These senior notes are not redeemable prior to maturity. In December 2016 and August 2019, the Company completed a cash tender offers of $100.0 million each in aggregate principal amount of such senior notes. A loss on extinguishment of debt of $31.4 million was reported for the year ended December 31, 2019. Subordinated Notes 2061 Subordinated Notes: In November 2020, the Company issued subordinated notes due January 2061 with a principal amount of $250.0 million, which bear interest at an annual rate of 5.25% (the “2061 Subordinated Notes”). Interest is payable quarterly in arrears beginning in April 2021. On or after January 2026, the Company may redeem the 2061 Subordinated Notes in whole at any time or in part from time to time, at a redemption price equal to their principal amount plus accrued and unpaid interest, provided that if they are not redeemed in whole, a minimum amount must remain outstanding. At any time prior to January 2026, the Company may redeem the 2061 Subordinated Notes in whole but not in part, within 90 days after the occurrence of a tax event, rating agency event or regulatory capital event as defined in the global note representing the 2061 Subordinated Notes, at a redemption price equal to (i) with respect to a rating agency event, 102% of their principal amount and (ii) with respect to a tax event or a regulatory capital event, their principal amount plus accrued and unpaid interest. See below, under 2048 Subordinated Notes (as defined below), for more information on terms applicable to both series. The Company used the net proceeds of $243.7 million from the 2061 Subordinated Notes, along with cash on hand, to finance the acquisition of HYLA. See Note 3 for additional information on the acquisition. 2048 Subordinated Notes : In March 2018, the Company issued fixed-to-floating rate subordinated notes due March 2048 with principal amount of $400.0 million (the “2048 Subordinated Notes”), which bear interest from March 2018 to March 2028 at an annual rate of 7.00%, payable semi-annually. The 2048 Subordinated Notes will bear interest at an annual rate equal to three-month LIBOR plus 4.135%, payable quarterly, beginning in June 2028. On or after March 2028, the Company may redeem the 2048 Subordinated Notes in whole at any time or in part from time to time, at a redemption price equal to their principal amount plus accrued and unpaid interest, provided that if they are not redeemed in whole, a minimum amount must remain outstanding. At any time prior to March 2028, the Company may redeem the 2048 Subordinated Notes in whole but not in part, within 90 days after the occurrence of a tax event, rating agency event or regulatory capital event as defined in the global note representing the 2048 Subordinated Notes, at a redemption price equal to (i) with respect to a rating agency event, 102% of their principal amount and (ii) with respect to a tax event or a regulatory capital event, their principal amount plus accrued and unpaid interest. In addition, so long as no event of default with respect to the 2048 Subordinated Notes and 2061 Subordinated Notes (together, the “Subordinated Notes”) has occurred and is continuing, 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 global note representing the Subordinated Notes. During a deferral period, interest will continue to accrue on the Subordinated Notes at the then-applicable interest rate. At any time when 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 the Company’s liquidation on a parity with or junior to the Subordinated Notes, subject to certain limited exceptions. Credit Facility and Commercial Paper Program In December 2021, the Company entered into a $500.0 million five five The Company made no borrowings using the Credit Facility or its prior five In March 2020, the Company drew down $200.0 million from its prior five The Company’s commercial paper program requires the Company to maintain liquidity facilities either in an available amount equal to any outstanding notes from the program or in an amount sufficient to maintain the ratings assigned to the notes issued from the program. The Company’s commercial paper is rated AMB-1 by A.M. Best, P-3 by Moody’s and A-2 by S&P. The Company’s subsidiaries do not maintain commercial paper or other borrowing facilities. This program is currently backed up by the Credit Facility, of which $495.5 million was available at December 31, 2021, and $4.5 million letters of credit were outstanding. The Company did not use the commercial paper program during the years ended December 31, 2021 or 2020 and there were no amounts relating to the commercial paper program outstanding as of December 31, 2021 or 2020. Covenants The Credit Facility contains restrictive covenants including: (i) Maintenance of a maximum consolidated total debt to capitalization ratio on the last day of any fiscal quarter of not greater than 0.35 to 1.0, subject to certain exceptions; and (ii) Maintenance of a consolidated adjusted net worth in an amount not less than a “Minimum Amount” equal to the sum of (a) $4.20 billion, (b) 25% of consolidated net income (if positive) for each fiscal quarter ending after December 31, 2021 and (c) 25% of the net cash proceeds received from any capital contribution to, or issuance of any capital stock, disqualified capital stock and hybrid securities. In the event of a breach of certain covenants, all obligations under the Credit Facility, including unpaid principal and accrued interest and outstanding letters of credit, may become immediately due and payable. Interest Rate Derivatives |
Equity Transactions
Equity Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Equity Transactions | Equity Transactions Common Stock Changes in the number of shares of common stock outstanding are as follows for the periods presented: December 31, 2021 2020 2019 Shares of common stock outstanding, beginning 57,967,808 59,945,893 61,908,979 Vested restricted stock and restricted stock units, net (1) 214,116 213,569 248,333 Issuance related to performance share units (1) 91,845 157,155 117,581 Issuance related to ESPP 113,555 90,166 88,498 Issuance related to MCPS 2,703,911 — — Shares of common stock repurchased (5,337,122) (2,438,975) (2,417,498) Shares of common stock outstanding, ending 55,754,113 57,967,808 59,945,893 (1) Vested restricted stock, restricted stock units and performance share units are shown net of shares of common stock retired to cover participant income tax liabilities. The Company is authorized to issue 800,000,000 shares of common stock. In addition, 150,001 shares of Class B common stock and 400,001 shares of Class C common stock are authorized but have not been issued. Stock Repurchase In January and May 2021, the Company’s Board of Directors (the “Board”) authorized the Company to repurchase up to $600.0 million and $900.0 million, respectively, aggregate cost at purchase of its outstanding common stock. During the year ended December 31, 2021, the Company repurchased 5,337,122 shares of the Company’s outstanding common stock at a cost of $844.4 million, exclusive of commissions, leaving $842.1 million remaining under the May 2021 repurchase authorization at December 31, 2021. During the years ended December 31, 2020 and 2019, the Company repurchased 2,438,975 and 2,417,498 shares of the Company’s outstanding common stock at a cost, exclusive of commissions, of $299.8 million and $274.9 million, respectively. The timing and the amount of future repurchases will depend on market conditions, the Company’s financial condition, results of operations and liquidity and other factors. Issuance of Mandatory Convertible Preferred Stock In March 2018, the Company issued 2,875,000 shares of the MCPS at a public offering price of $100.00 per share. The net proceeds from the sale of the MCPS was $276.4 million after deducting underwriting discounts and offering expenses. Each outstanding share of MCPS converted in March 2021 into 0.9405 of common stock, or 2,703,911 shares of common stock in total plus an immaterial amount of cash in lieu of fractional shares. The Company used a portion of its treasury stock for the common stock, using the average cost method to account for the reissuance of such shares. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Based Compensation | Stock Based Compensation In accordance with the guidance on share-based compensation, the Company recognized stock-based compensation costs based on the grant date fair value. For the years ended December 31, 2021, 2020 and 2019, the Company recognized compensation costs net of a 5% per year estimated forfeiture rate on a pro-rated basis over the remaining vesting period. Long-Term Equity Incentive Plan Under the Assurant, Inc. 2017 Long-Term Equity Incentive Plan (the “ALTEIP”), as amended in May 2021, the Company is authorized to issue up to 1,840,112 new shares of the Company’s common stock to employees, officers and non-employee directors. Under the ALTEIP, the Company may grant awards based on shares of its common stock, including stock options, stock appreciation rights, restricted stock (including performance shares), unrestricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”) and dividend equivalents. All share-based grants are awarded under the ALTEIP. The Compensation Committee of the Board (the “Compensation Committee”) awards RSUs and PSUs annually. RSUs and PSUs are promises to issue actual shares of common stock at the end of a vesting period or performance period. The RSUs granted to employees under the ALTEIP are based on salary grade and performance and generally vest one-third each year over a three three Under the ALTEIP, the Company’s CEO is authorized by the Board to grant common stock, restricted stock and RSUs to employees other than the Company’s executive officers. The Compensation Committee recommends the annual share allotment that can be awarded by the CEO under this program. Restricted stock and RSUs granted under this program may have different vesting periods. The fair value of RSUs is estimated using the fair market value of a share of the Company’s common stock at the date of grant. The fair value of PSUs is estimated using the Monte Carlo simulation model. The number of shares of common stock a participant will receive upon vesting of a PSU award is contingent upon the Company’s performance with respect to selected metrics, as identified below. The payout levels for 2021, 2020 and 2019 awards can vary between 0% and 200% (maximum) of the target (100%) ALTEIP award amount, based on the Company’s level of performance against the selected metrics. 2021, 2020 and 2019 PSU Performance Goals. The Compensation Committee established total shareholder return and net operating income per diluted share, excluding reportable catastrophes, as the two equally weighted performance measures for PSU awards in 2021, 2020 and 2019. Total shareholder return is defined as appreciation in the Company’s common stock plus dividend yield to stockholders and will be measured by the performance of the Company relative to the S&P 500 Index over the three that is measured against a three Restricted Stock Units A summary of the Company’s outstanding RSUs is presented below: Restricted Stock Units Weighted-Average Restricted stock units outstanding at December 31, 2020 723,726 $ 95.67 Grants (1) 252,613 143.20 Vests (2) (330,053) 96.70 Forfeitures and adjustments (18,852) 110.38 Restricted stock units outstanding at December 31, 2021 627,434 $ 113.84 Restricted stock units vested, but deferred at December 31, 2021 75,270 $ 80.02 (1) The weighted average grant date fair value for RSUs granted in 2020 and 2019 was $96.33 and $102.86, respectively. (2) The total fair value of RSUs vested was $47.4 million, $32.3 million and $38.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. The following table shows a summary of RSU activity during the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 RSU compensation expense $ 32.8 $ 29.4 $ 29.5 Income tax benefit (5.9) (5.2) (5.3) RSU compensation expense, net of tax $ 26.9 $ 24.2 $ 24.2 As of December 31, 2021, there was $22.4 million of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 0.97 years. Performance Share Units A summary of the Company’s outstanding PSUs is presented below: Performance Weighted-Average Performance share units outstanding at December 31, 2020 674,099 $ 101.45 Grants (1) 208,040 148.04 Vests (2) (177,157) 123.84 Performance adjustment (3) 28,290 125.57 Forfeitures and adjustments (22,156) 107.30 Performance share units outstanding at December 31, 2021 711,116 $ 110.31 (1) The weighted average grant date fair value for PSUs granted in 2020 and 2019 was $87.53 and $105.23, respectively. (2) The total fair value of PSUs vested was $24.6 million, $24.9 million and $19.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. (3) Represents the change in PSUs issued based upon the attainment of performance goals established by the Company. PSU grants above represent initial target awards and do not reflect potential increases or decreases resulting from the financial performance objectives to be determined at the end of the prospective performance period. The actual number of PSUs to be issued at the end of each performance period will range from 0% to 200% of the initial target awards. The following table shows a summary of PSU activity during the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 PSU compensation expense $ 31.8 $ 26.5 $ 23.2 Income tax benefit (3.3) (2.6) (2.7) PSU compensation expense, net of tax $ 28.5 $ 23.9 $ 20.5 As of December 31, 2021, there was $21.6 million of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 0.68 years. 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 granted during the years ended December 31, 2021, 2020 and 2019 were based on the historical prices of the Company’s common stock and peer group. The expected term for grants issued during the years ended December 31, 2021, 2020 and 2019 was assumed to equal the average of the vesting period of the PSUs. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant. For awards granted during the 2021 2020 2019 Expected volatility 34.14 % 27.23 % 20.92 % Expected term (years) 2.79 2.79 2.80 Risk free interest rate 0.29 % 0.41 % 2.40 % Employee Stock Purchase Plan Under the Employee Stock Purchase Plan (the “ESPP”), the Company is authorized to issue up to 5,000,000 new shares of common stock to employees who are participants in the ESPP. The ESPP allows eligible employees to contribute, through payroll deductions, portions of their after-tax compensation in each offering period toward the purchase of shares of the Company’s common stock. There are two offering periods during the year (January 1 through June 30 and July 1 through December 31) and shares of common stock are purchased at the end of each offering period at 90% of the lower of the closing price of the common stock on the first or last day of the offering period. Participants must be employed on the last trading day of the offering period in order to purchase shares of common stock under the ESPP. The maximum number of shares of common stock that can be purchased is 5,000 per employee. Participants’ contributions are limited to a maximum contribution of $7.5 thousand per offering period, or $15.0 thousand per year. The ESPP is offered to individuals who are scheduled to work a certain number of hours per week, have been continuously employed for at least six months by the start of the offering period, are not temporary employees (employed less than 12 months) and have not been on a leave of absence for more than 90 days immediately preceding the offering period. In January 2022, the Company issued 46,460 shares of common stock at a discounted price of $140.27 for the offering period of July 1, 2021 through December 31, 2021. In January 2021, the Company issued 59,753 shares of common stock at a discounted price of $90.96 for the offering period of July 1, 2020 through December 31, 2020. In July 2021, the Company issued 53,802 shares of common stock to employees at a discounted price of $118.90 for the offering period of January 1, 2021 through June 30, 2021. In July 2020, the Company issued 50,521 shares of common stock to employees at a discounted price of $92.96 for the offering period of January 1, 2020 through June 30, 2020. The compensation expense recorded related to the ESPP was $2.2 million, $2.0 million and $1.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. The related income tax benefit for disqualified disposition was $0.1 million for the years ended December 31, 2021 and 2020. There was no income tax benefit for disqualified disposition for the year ended December 31, 2019. The fair value of each award under the ESPP was estimated at the beginning of each offering period using the Black-Scholes option-pricing model and assumptions in the table below. Expected volatilities are based on implied volatilities from traded options on the Company’s common stock and the historical volatility of the Company’s common stock. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The dividend yield is based on the current annualized dividend and common stock price as of the grant date. For awards issued during the 2021 2020 2019 Expected volatility 24.56 - 28.67% 16.38 - 52.04% 18.47 - 26.91% Risk free interest rates 0.06 - 0.09% 0.17 - 1.57% 2.10 - 2.56% Dividend yield 1.67 - 1.98% 1.89 - 2.46% 2.18 - 2.63% Expected term (years) 0.5 0.5 0.5 Non-Stock Based Incentive Plans Deferred Compensation The Company’s deferred compensation programs consist of the AIP, the ASIC and the ADC. The AIP and the ASIC provided key employees the ability to exchange a portion of their compensation for options to purchase certain third-party mutual funds. The AIP and the ASIC were frozen in December 2004 and no additional contributions can be made to either the AIP or the ASIC. Effective March 1, 2005 and amended and restated on January 1, 2008, the ADC Plan was established in order to comply with the American Jobs Creation Act of 2004 (the “Jobs Act”) and Section 409A of the Internal Revenue Code of 1986, as amended (the “IRC”). The ADC provides key employees the ability to defer a portion of their eligible compensation to be notionally invested in a variety of mutual funds. Deferrals and withdrawals under the ADC are intended to be fully compliant with the Jobs Act definition of eligible compensation and distribution requirements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Certain amounts included in the consolidated statements of comprehensive income are net of reclassification adjustments. The following tables summarize those reclassification adjustments (net of taxes) for the periods indicated: Year Ended December 31, 2021 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net (losses) on Pension Plans Accumulated Balance at December 31, 2020 $ (295.6) $ 1,097.6 $ 14.7 $ (106.9) $ 709.8 Change in accumulated other comprehensive income before reclassifications (31.0) (215.9) — 17.3 (229.6) Amounts reclassified from accumulated other comprehensive income (0.3) (625.1) (2.3) (2.5) (630.2) Net current-period other comprehensive (loss) income (31.3) (841.0) (2.3) 14.8 (859.8) Balance at December 31, 2021 $ (326.9) $ 256.6 $ 12.4 $ (92.1) $ (150.0) Year Ended December 31, 2020 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net (losses) on Pension Plans Accumulated Balance at December 31, 2019 $ (358.9) $ 872.0 $ 17.1 $ (118.7) $ 411.5 Change in accumulated other comprehensive income before reclassifications 24.9 233.5 — 15.8 274.2 Amounts reclassified from accumulated other comprehensive income 38.4 (7.9) (2.4) (4.0) 24.1 Net current-period other comprehensive income (loss) 63.3 225.6 (2.4) 11.8 298.3 Balance at December 31, 2020 $ (295.6) $ 1,097.6 $ 14.7 $ (106.9) $ 709.8 Year Ended December 31, 2019 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net (losses) on Pension Plans Accumulated Balance at December 31, 2018 $ (375.6) $ 316.1 $ 18.4 $ (114.3) $ (155.4) Change in accumulated other comprehensive income before reclassifications 16.7 565.0 1.0 (4.5) 578.2 Amounts reclassified from accumulated other comprehensive income — (9.1) (2.3) 0.1 (11.3) Net current-period other comprehensive income (loss) 16.7 555.9 (1.3) (4.4) 566.9 Balance at December 31, 2019 $ (358.9) $ 872.0 $ 17.1 $ (118.7) $ 411.5 The following tables summarize the reclassifications out of AOCI for the periods indicated. Details about AOCI components Amount reclassified from AOCI Affected line item in the statement where Years Ended December 31, 2021 2020 2019 Foreign currency translation adjustment $ (0.8) $ 38.4 $ — Iké net losses (see Note 5) 0.5 — — Provision for income taxes $ (0.3) $ 38.4 $ — Net of tax Net unrealized gains (losses) on securities $ (797.8) $ (10.0) $ (11.5) Net realized gains (losses) on investments and fair value changes to equity securities 172.7 2.1 2.4 Provision for income taxes $ (625.1) $ (7.9) $ (9.1) Net of tax Unrealized gains on derivative transactions $ (2.8) $ (2.9) $ (3.0) Interest expense 0.5 0.5 0.7 Provision for income taxes $ (2.3) $ (2.4) $ (2.3) Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss $ 7.2 $ 5.1 $ — (1) Amortization of prior service credit (13.5) (11.3) — (1) Settlement loss 3.1 1.0 0.1 (1) (3.2) (5.2) 0.1 Total before tax 0.7 1.2 — Provision for income taxes $ (2.5) $ (4.0) $ 0.1 Net of tax Total reclassifications for the period $ (630.2) $ 24.1 $ (11.3) Net of tax |
Statutory Information
Statutory Information | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Statutory Information | Statutory Information The Company’s insurance subsidiaries prepare financial statements in accordance with Statutory Accounting Principles (“SAP”) prescribed or permitted by the insurance departments of their states of domicile. Prescribed SAP includes the Accounting Practices and Procedures Manual of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and administrative rules. The principal differences between SAP and GAAP are: (1) policy acquisition costs are expensed as incurred under SAP, but are deferred and amortized under GAAP; (2) VOBA is not capitalized under SAP but is under GAAP; (3) amounts collected from holders of universal life-type and annuity products are recognized as premiums when collected under SAP, but are initially recorded as contract deposits under GAAP, with cost of insurance recognized as revenue when assessed and other contract charges recognized over the periods for which services are provided; (4) the classification and carrying amounts of investments in certain securities are different under SAP than under GAAP; (5) the criteria for providing asset valuation allowances, and the methodologies used to determine the amounts thereof, are different under SAP than under GAAP; (6) the timing of establishing certain reserves, and the methodologies used to determine the amounts thereof, are different under SAP than under GAAP; (7) certain assets are not admitted for purposes of determining surplus under SAP; (8) methodologies used to determine the amounts of deferred taxes, intangible assets and goodwill are different under SAP than under GAAP; and (9) the criteria for obtaining reinsurance accounting treatment is different under SAP than under GAAP, and SAP allows net presentation of insurance reserves and reinsurance recoverables. The combined statutory net income, excluding intercompany dividends and surplus note interest, and capital and surplus of the Company’s U.S. domiciled statutory insurance subsidiaries is as follows: Years Ended December 31, 2021 2020 2019 Property and casualty companies $ 468.0 $ 445.5 $ 313.3 Life and health companies 18.6 98.3 104.7 Total statutory net income (1) $ 486.6 $ 543.8 $ 418.0 (1) There was no statutory net income for the year ended December 31, 2021 from the insurance entities included in the disposed Global Preneed business due to the August 2021 sale. December 31, 2021 2020 Property and casualty companies $ 1,529.1 $ 1,567.3 Life and health companies 120.3 445.8 Total statutory capital and surplus (1) $ 1,649.4 $ 2,013.1 (1) There was no statutory capital and surplus as of December 31, 2021 from the insurance entities included in the disposed Global Preneed business. The Company also has non-insurance subsidiaries and foreign insurance subsidiaries that are not subject to SAP. The statutory net income and statutory capital and surplus amounts presented above do not include non-insurance subsidiaries and foreign insurance subsidiaries in accordance with SAP. Insurance enterprises are required by state insurance departments to adhere to minimum RBC requirements developed by the NAIC. All of the Company’s insurance subsidiaries exceed minimum RBC requirements. The payment of dividends to the Company by any of the Company’s regulated U.S domiciled insurance subsidiaries in excess of a certain amount (i.e., extraordinary dividends) must be approved by the subsidiary’s domiciliary jurisdiction department of insurance. Ordinary dividends, for which no regulatory approval is generally required, are limited to amounts determined by a formula, which varies by jurisdiction. The formula for the majority of the jurisdictions in which the Company’s subsidiaries are domiciled is based on the prior year’s statutory net income or 10% of the statutory surplus as of the end of the prior year. Some jurisdictions limit ordinary dividends to the greater of these two amounts, others limit them to the lesser of these two amounts and some jurisdictions exclude prior year realized capital gains from prior year net income in determining ordinary dividend capacity. Some jurisdictions have an additional stipulation that dividends may only be paid out of earned surplus. If insurance regulators determine that payment of an ordinary dividend or any other payments by the Company’s insurance subsidiaries to the Company (such as payments under a tax sharing agreement or payments for employee or other services) would be adverse to policyholders or creditors, the regulators may block such payments that would otherwise be permitted without prior approval. Based on the dividend restrictions under applicable laws and regulations, the maximum amount of dividends that the Company’s U.S domiciled insurance subsidiaries could pay to the Company in 2022 without regulatory approval is approximately $475.3 million. No assurance can be given that there will not be further regulatory actions restricting the ability of the Company’s insurance subsidiaries to pay dividends. State regulators require insurance companies to meet minimum capitalization standards designed to ensure that they can fulfill obligations to policyholders. Minimum capital requirements are based on the RBC Ratio, which is a ratio of a company’s total adjusted capital (“TAC”) to its RBC. TAC is equal to statutory surplus adjusted to exclude certain statutory liabilities. RBC is calculated by applying specified factors to various asset, premium, expense, liability, and reserve items. Generally, if a company’s RBC Ratio is below 100% (the “Authorized Control Level”), the insurance commissioner of the company’s jurisdiction of domicile is authorized to take control of the company, to protect the interests of policyholders. If the RBC Ratio is greater than 100% but less than 200% (the “Company Action Level”), the company must submit a RBC plan to the commissioner of the jurisdiction of domicile. Corrective actions may also be required if the RBC Ratio is greater than the Company Action Level but the company fails certain trend tests. |
Retirement and Other Employee B
Retirement and Other Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement and Other Employee Benefits | Retirement and Other Employee Benefits Defined Benefit Plans The Company and its subsidiaries participate in a non-contributory, qualified defined benefit pension plan (“Assurant Pension Plan”) covering substantially all employees. The Assurant Pension Plan is considered “qualified” because it meets the requirements of IRC Section 401(a) (“IRC 401(a)”) and the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Assurant Pension Plan is a pension equity plan with a grandfathered final average earnings plan for a certain group of employees. Benefits are based on certain years of service and the employee’s compensation during certain such years of service. The Company’s funding policy is to contribute amounts to the Assurant Pension Plan sufficient to meet the minimum funding requirements in ERISA, plus such additional amounts as the Company may determine to be appropriate from time to time up to the maximum permitted. The funding policy considers several factors to determine such additional amounts, including items such as the amount of service cost plus 15% of the Assurant Pension Plan deficit and the capital position of the Company. During the year ended December 31, 2021, there were no contributions to the Assurant Pension Plan. Due to the Assurant Pension Plan’s current funding status, no contributions to the Assurant Pension Plan are expected during the year ending December 31, 2022. Assurant Pension Plan assets are maintained in a separate trust. Assurant Pension Plan assets and benefit obligations are measured as of December 31, 2021. The Company also has various non-contributory, non-qualified supplemental plans covering certain employees including the Assurant Executive Pension Plan and the Assurant Supplement Executive Retirement Plan (the “SERP”). Since these plans are “non-qualified” they are not subject to the requirements of IRC 401(a) and ERISA. As such, the Company is not required, and does not, fund these plans. The qualified and nonqualified plans are referred to as “Pension Benefits” unless otherwise noted. The Company has the right to modify or terminate these benefits; however, the Company will not be relieved of its obligation to plan participants for their vested benefits. In addition, the Company provides certain life and health care benefits (“Retirement Health Benefits”) for retired employees and their dependents. On July 1, 2011, the Company terminated certain health care benefits for employees who did not qualify for “grandfathered” status and no longer offers these benefits to new hires. The Company contribution, plan design and other terms of the remaining benefits did not change for those grandfathered employees. The Company has the right to modify or terminate these benefits. Effective January 1, 2014, the Pension Benefits plans were closed to new hires. Effective March 1, 2016, the Pension Benefits and Retirement Health Benefits (together, the “Plans”) were amended such that no additional benefits will be earned after February 29, 2016. In February 2020, the Company amended the Retirement Health Benefits to terminate effective December 31, 2024 (the “Termination Date”). Benefits will be paid up to the Termination Date. The Retirement Health Benefits obligations were re-measured using a discount rate of 1.55%, selected based on a cash flow analysis using a bond yield curve as of February 29, 2020, and the fair market value of the Retirement Health Benefits assets as of February 29, 2020. The remeasurement resulted in a reduction to the Retirement Health Benefits obligations of $65.6 million and a corresponding prior service credit in AOCI, which will be reclassified from AOCI as it is amortized in the net periodic benefit cost over the remaining period until the Termination Date. The following table presents information on the Plans for the periods indicated: Pension Benefits Retirement Health Benefits 2021 2020 2021 2020 Change in projected benefit obligation Projected benefit obligation at beginning of year $ (895.3) $ (825.1) $ (21.3) $ (85.4) Interest cost (15.2) (22.4) (0.1) (0.7) Amendments — — — 65.6 Settlements 15.7 — — — Actuarial gain (loss) 28.0 (99.0) 1.5 (5.4) Benefits paid 34.5 51.2 4.6 4.6 Projected benefit obligation at end of year $ (832.3) $ (895.3) $ (15.3) $ (21.3) Change in plan assets Fair value of plan assets at beginning of year $ 852.8 $ 809.0 $ 44.3 $ 44.0 Actual return on plan assets 20.7 88.0 1.0 4.7 Employer contributions 5.5 8.3 0.2 0.2 Settlements (15.7) — — — Benefits paid (including administrative expenses) (35.8) (52.5) (4.6) (4.6) Fair value of plan assets at end of year $ 827.5 $ 852.8 $ 40.9 $ 44.3 Funded status at end of year $ (4.8) $ (42.5) $ 25.6 $ 23.0 In accordance with the guidance on retirement benefits, the Company aggregates the results of the qualified and non-qualified plans as “Pension Benefits” and is required to disclose the aggregate projected benefit obligation, accumulated benefit obligation and fair value of plan assets, if the obligations within those plans exceed plan assets. As of December 31, 2021 and 2020, the fair value of plan assets, projected benefit obligation, funded status at end of year and the accumulated benefit obligation of Pension Benefits were as follows: Qualified Pension Benefits Unfunded Nonqualified Total Pension Benefits 2021 2020 2021 2020 2021 2020 Fair value of plan assets $ 827.5 $ 852.8 $ — $ — $ 827.5 $ 852.8 Projected benefit obligation (752.7) (809.6) (79.6) (85.7) (832.3) (895.3) Funded status at end of year $ 74.8 $ 43.2 $ (79.6) $ (85.7) $ (4.8) $ (42.5) Accumulated benefit obligation $ 752.7 $ 809.6 $ 79.6 $ 85.7 $ 832.3 $ 895.3 Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Retirement Health Benefits 2021 2020 2021 2020 Assets $ 74.8 $ 43.2 $ 25.6 $ 23.0 Liabilities $ (79.6) $ (85.7) $ — $ — Amounts recognized in AOCI consist of: Pension Benefits Retirement Health Benefits 2021 2020 2019 2021 2020 2019 Net (loss) gain $ (163.2) $ (194.2) $ (157.4) $ 6.2 $ 5.9 $ 8.5 Prior service (cost) credit (0.4) (0.4) (0.5) 40.8 54.3 — $ (163.6) $ (194.6) $ (157.9) $ 47.0 $ 60.2 $ 8.5 Components of net periodic benefit cost, recorded in underwriting, general and administrative expenses in the consolidated statements of operations, and other amounts recognized in AOCI for the years ended December 31, 2021, 2020, and 2019 were as follows: Pension Benefits Retirement Health Benefits 2021 2020 2019 2021 2020 2019 Net periodic benefit cost Interest cost $ 15.2 $ 22.4 $ 28.6 $ 0.1 $ 0.7 $ 3.1 Expected return on plan assets (27.3) (30.6) (35.5) (1.5) (1.8) (1.9) Amortization of prior service credit (cost) 0.1 0.1 — (13.6) (11.3) — Amortization of net loss (gain) 7.8 5.1 1.2 (0.6) — (1.2) Curtailment/settlement loss 3.1 1.0 0.1 — — — Net periodic benefit cost $ (1.1) $ (2.0) $ (5.6) $ (15.6) $ (12.4) $ — Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive income Prior service cost $ — — — $ — (65.6) — Net (gain) loss (20.1) 42.9 16.8 (0.9) 2.5 (12.2) Amortization of prior service (cost) credit (0.1) (0.1) — 13.6 11.3 — Amortization of net (loss) gain (10.9) (6.1) (1.3) 0.6 — 1.2 Total recognized in accumulated other comprehensive (loss) income $ (31.1) $ 36.7 $ 15.5 $ 13.3 $ (51.8) $ (11.0) Total recognized in net periodic benefit cost and other comprehensive (loss) income $ (32.2) $ 34.7 $ 9.9 $ (2.3) $ (64.2) $ (11.0) The Company uses a five five five Determination of the projected benefit obligation was based on the following weighted-average assumptions for the years ended December 31, 2021, 2020 and 2019: Qualified Pension Benefits Unfunded Nonqualified Pension Benefits Retirement Health Benefits 2021 2020 2019 2021 2020 2019 2021 2020 2019 Discount rate 2.79 % 2.39 % 3.27 % 2.68 % 2.20 % 3.11 % 1.08 % 0.60 % 3.23 % Determination of the net periodic benefit cost was based on the following weighted-average assumptions for the years ended December 31, 2021, 2020 and 2019: Qualified Pension Benefits Unfunded Nonqualified Pension Benefits Retirement Health Benefits 2021 2020 2019 2021 2020 2019 2021 2020 Pre-Amendment 2020 Post-Amendment 2019 Discount rates: Effective discount rate for benefit obligations 2.39 % 3.27 % 4.33 % 2.20 % 3.11 % 4.21 % 0.60 % 3.23 % 1.55 % 4.30 % Effective rate for interest on benefit obligations 1.80 % 2.84 % 3.98 % 1.45 % 2.77 % 3.88 % 0.55 % 2.83 % 1.53 % 3.99 % Expected long-term return on plan assets 3.65 % 4.15 % 4.75 % — % — % — % 3.65 % 4.15 % 4.15 % 4.75 % The selection of the Company’s discount rate assumption reflects the rate at which the Plans’ obligations could be effectively settled at December 31, 2021, 2020 and 2019. The methodology for selecting the discount rate was to match each Plan’s cash flows to that of a yield curve that provides the equivalent yields on zero-coupon corporate bonds for each maturity. The yield curve utilized in the cash flow analysis was comprised of 228 bonds rated AA by either Moody’s or S&P’s with maturities between zero To develop the expected long-term rate of return on assets assumption, the Company considered the current level of expected returns on risk free investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected long-term rate of return on Plan assets reflects the average rate of earnings expected on the funds invested or to be invested. The expected return for each asset class was then weighted based on the targeted asset allocation to develop the expected long-term rate of return on asset assumptions for the portfolio. The Company believes the current assumption reflects the projected return on the invested assets, given the current market conditions and the modified portfolio structure. Actual return (loss) on Plan assets was 2.4%, 10.9% and 16.3% for the years ended December 31, 2021, 2020 and 2019 respectively. The assumed health care cost trend rates used in measuring the accumulated postretirement benefit obligation and net periodic benefit cost were as follows: Retirement Health Benefits 2021 2020 2019 Health care cost trend rate assumed for next year: Pre-65 Non-reimbursement Plan 5.5% 8.0% 8.2% Post-65 Non-reimbursement Plan (Medical) 4.1% 5.9% 5.9% Post-65 Non-reimbursement Plan (Rx) 6.9% 13.0% 13.5% Pre-65 Reimbursement Plan 5.4% 9.7% 9.9% Post-65 Reimbursement Plan 5.4% 9.7% 9.9% Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.0% 4.5% 4.5% Year that the rate reaches the ultimate trend rate Pre-65 Non-reimbursement Plan 2045 2039 2038 Post-65 Non-reimbursement Plan (Medical & Rx) 2045 2039 2038 Pre-65 Reimbursement Plan 2045 2039 2038 Post-65 Reimbursement Plan 2045 2039 2038 The assets of the Plans are managed to maximize their long-term pre-tax investment return, subject to the following dual constraints: minimization of required contributions and maintenance of solvency requirements. It is anticipated that periodic contributions to the Plans will, for the foreseeable future, be sufficient to meet benefit payments thus allowing the balance to be managed according to a long-term approach. The Benefit Plan Investment Committee (“BPIC”) for the Plans meets on a quarterly basis and reviews the re-balancing of existing fund assets and the asset allocation of new fund contributions. The goal of the Company’s asset strategy is to ensure that the growth in the value of the Plan’s assets over the long-term, both in real and nominal terms, manages (controls) risk exposure. Risk is managed by investing in a broad range of asset classes, and within those asset classes, a broad range of individual securities. Diversification by asset classes stabilizes total results over short-term time periods. Each asset class is externally managed by outside investment managers appointed by the BPIC. Derivatives may be used consistent with the Plan’s investment objectives established by the BPIC. All securities must be U.S. Dollar denominated. The BPIC oversees the investment of the Company’s plan assets and periodically reviews the investment strategies, strategic asset allocation, liabilities and portfolio structure of the Company’s plan assets. After a 2017 review and considering the funded status of the Assurant Pension Plan, the BPIC transitioned plan assets to a new target asset allocation consisting of 80% fixed income, 10% real estate, 5% hedge funds and 5% equities. The assets of the Plans are primarily invested in fixed maturity securities. Interest rate risk is hedged by aligning the duration of the fixed maturity securities with the duration of the liabilities. Specifically, interest rate swaps can be used if needed to synthetically extend the duration of fixed maturity securities to match the duration of the liabilities, as measured on a projected benefit obligation basis. In addition, the Plans’ fixed income securities have exposure to credit risk. In order to adequately diversify and limit exposure to credit risk, the BPIC established parameters which include a limit on the asset types that managers are permitted to purchase, maximum exposure limits by sector and by individual issuer (based on asset quality) and minimum required ratings on individual securities. As of December 31, 2021, 86% of plan assets were invested in fixed maturity securities and 14%, 12% and 9% of those securities were concentrated in the energy and power, communication, and finance and real estate industries, respectively, with no exposure to any single creditor in excess of 4%, 13% and 8% of those industries, respectively. As of December 31, 2021, 4% of plan assets were invested in equity securities and 97% of the Plans’ equity securities were invested in a mutual fund that attempts to replicate the return of the S&P 500 Index by investing its assets in large capitalization stocks that are included in the S&P 500 Index using a weighting similar to the S&P 500 Index. The remainder of the assets are invested in real estate and other alternative assets. The fair value hierarchy for the Company’s qualified pension plan and other postretirement benefit plan assets at December 31, 2021 by asset category, is as follows: Qualified Pension Benefits December 31, 2021 Financial Assets Total Level 1 Level 2 Cash equivalents: Short-term investment funds $ 11.1 $ — $ 11.1 Equity securities: Preferred stock 1.1 1.1 — Mutual funds - U.S. listed large cap 33.8 33.8 — Fixed maturity securities: U.S. & foreign government and government agencies and authorities 231.2 — 231.2 Corporate - U.S. & foreign investment grade 395.5 — 395.5 Corporate - U.S. & foreign high yield 42.2 — 42.2 Mutual funds - U.S. investment grade 42.8 42.8 — Other investments measured at net asset value (1) 118.8 — — Total financial assets (2) $ 876.5 $ 77.7 $ 680.0 (1) In accordance with fair value measurements and disclosures guidance, certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The net asset values of $35.7 million, $7.3 million and $75.8 million as of December 31, 2021 are used as a practical expedient to fair value of the multi-strategy hedge fund, private equity fund and real estate fund, respectively. (2) The difference between the fair value of Plan assets above and the amount used in determining the funded status is due to interest receivable and net receivable/payable for unsettled trades, which is not required to be included in the fair value hierarchy. Retirement Health Benefits December 31, 2021 Financial Assets Total Level 1 Level 2 Cash equivalents: Short-term investment funds $ 0.6 $ — $ 0.6 Equity securities: Preferred stock 0.1 0.1 — Mutual funds - U.S. listed large cap 1.7 1.7 — Fixed maturity securities: U.S. & foreign government and government agencies and authorities 11.4 — 11.4 Corporate - U.S. & foreign investment grade 19.6 — 19.6 Corporate - U.S. & foreign high yield 2.1 — 2.1 Mutual funds - U.S. investment grade 2.1 2.1 — Other investments measured at net asset value (1) 5.8 — — Total financial assets (2) $ 43.4 $ 3.9 $ 33.7 (1) In accordance with fair value measurements and disclosures guidance, certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The net asset values of $1.8 million, $0.3 million and $3.7 million as of December 31, 2021 are used as a practical expedient to fair value of the multi-strategy hedge fund, private equity fund and real estate fund, respectively. (2) The difference between the fair value of Plan assets above and the amount used in determining the funded status is due to interest receivable and net receivable/payable for unsettled trades, which is not required to be included in the fair value hierarchy. The fair value hierarchy for the Company’s qualified pension plan and other postretirement benefit plan assets at December 31, 2020 by asset category, is as follows: Qualified Pension Benefits December 31, 2020 Financial Assets Total Level 1 Level 2 Cash and cash equivalents: Short-term investment funds $ 10.6 $ — $ 10.6 Equity securities: Preferred stock 1.2 1.2 — Mutual funds - U.S. listed large cap 26.2 26.2 — Fixed maturity securities: U.S. & foreign government and government agencies and authorities 174.8 — 174.8 Corporate - U.S. & foreign investment grade 483.1 — 483.1 Corporate - U.S. & foreign high yield 55.5 — 55.5 Mutual funds - U.S. investment grade 15.9 15.9 — Other investments measured at net asset value (1) 108.4 — — Total financial assets (2) $ 875.7 $ 43.3 $ 724.0 (1) In accordance with fair value measurements and disclosures guidance, certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The net asset values of $38.2 million, $7.1 million and $63.1 million as of December 31, 2020 are used as a practical expedient to fair value of the multi-strategy hedge fund, private equity fund and real estate fund, respectively. The multi-strategy hedge fund, which is reported on a one month lag, was liquidated on December 31, 2020. (2) The difference between the fair value of Plan assets above and the amount used in determining the funded status is due to interest receivable and net receivable/payable for unsettled trades, which is not required to be included in the fair value hierarchy. Retirement Health Benefits December 31, 2020 Financial Assets Total Level 1 Level 2 Cash and cash equivalents: Short-term investment funds $ 0.6 $ — $ 0.6 Equity securities: Preferred stock 0.1 0.1 — Mutual funds - U.S. listed large cap 1.3 1.3 — Fixed maturity securities: U.S. & foreign government and government agencies and authorities 9.1 — 9.1 Corporate - U.S. & foreign investment grade 25.1 — 25.1 Corporate - U.S. & foreign high yield 2.9 — 2.9 Mutual funds - U.S. investment grade 0.8 0.8 — Other investments measured at net asset value (1) 5.7 — — Total financial assets (2) $ 45.6 $ 2.2 $ 37.7 (1) In accordance with fair value measurements and disclosures guidance, certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The net asset values of $2.0 million, $0.4 million and $3.3 million as of December 31, 2020 are used as a practical expedient to fair value of the multi-strategy hedge fund, private equity fund and real estate fund, respectively. The multi-strategy hedge fund, which is reported on a one month lag, was liquidated on December 31, 2020. (2) The difference between the fair value of Plan assets above and the amount used in determining the funded status is due to interest receivable and net receivable/payable for unsettled trades, which is not required to be included in the fair value hierarchy. Level 1 and Level 2 securities are valued using various observable market inputs obtained from a pricing service. The pricing service prepares estimates of fair value measurements for the Company’s Level 2 securities using proprietary valuation models based on techniques such as matrix pricing which include observable market inputs. Observable market inputs for Level 1 and Level 2 securities are consistent with the observable market inputs described in Note 10. The Company obtains one price for each investment. A quarterly analysis is performed to assess if the evaluated prices represent a reasonable estimate of their fair value. This process involves quantitative and qualitative analysis and is overseen by benefits, investment and accounting professionals. Examples of procedures performed include initial and on-going review of pricing service methodologies, review of pricing statistics and trends, and comparison of prices for certain securities with two different appropriate price sources for reasonableness. Following this analysis, the Company uses the best estimate of fair value based upon all available inputs. The pricing service provides information regarding their pricing procedures so that the Company can properly categorize the Plans’ financial assets in the fair value hierarchy. The following pension benefits are expected to be paid over the next ten-year period: Pension Retirement 2022 $ 66.3 $ 5.1 2023 51.6 5.2 2024 52.8 5.3 2025 51.7 — 2026 53.6 — 2027 - 2031 246.5 — Total $ 522.5 $ 15.6 Defined Contribution Plan |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share The following table presents net income, the weighted average common shares used in calculating basic EPS and those used in calculating diluted EPS for each period presented below. Diluted EPS reflects the incremental common shares from: (1) common shares issuable upon vesting of PSUs and ESPP using the treasury stock method; and (2) common shares issuable upon conversion of the MCPS using the if-converted method. Refer to Notes 20 and 21 for further information regarding potential common stock 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. Years Ended December 31, 2021 2020 2019 Numerator Net income from continuing operations $ 613.5 $ 520.4 $ 306.4 Less: Net income attributable to non-controlling interest — (0.9) (4.2) Net income from continuing operations attributable to stockholders 613.5 519.5 302.2 Less: Preferred stock dividends (4.7) (18.7) (18.7) Net income from continuing operations attributable to common stockholders 608.8 500.8 283.5 Less: Common stock dividends paid (157.6) (154.6) (151.4) Undistributed earnings $ 451.2 $ 346.2 $ 132.1 Net income from continuing operations attributable to common stockholders $ 608.8 $ 500.8 $ 283.5 Add: Net income (loss) from discontinued operations 758.9 (77.7) 80.4 Net income attributable to common stockholders $ 1,367.7 $ 423.1 $ 363.9 Denominator Weighted average common shares outstanding used in basic per common share calculations 59,140,861 60,114,670 61,942,969 Incremental common shares from: PSUs 403,316 311,712 332,873 ESPP 45,604 51,631 37,626 MCPS 533,913 2,701,925 — Weighted average common shares outstanding used in diluted per common share calculations 60,123,694 63,179,938 62,313,468 Earnings per common share – Basic Distributed earnings $ 2.66 $ 2.57 $ 2.44 Undistributed earnings 7.63 5.76 2.14 Net income from continuing operations 10.29 8.33 4.58 Net income (loss) from discontinued operations 12.84 (1.29) 1.29 Net income attributable to common stockholders $ 23.13 $ 7.04 $ 5.87 Earnings per common share – Diluted Distributed earnings $ 2.62 $ 2.45 $ 2.43 Undistributed earnings 7.58 5.77 2.13 Net income from continuing operations 10.20 8.22 4.56 Net income (loss) from discontinued operations 12.63 (1.23) 1.28 Net income attributable to common stockholders $ 22.83 $ 6.99 $ 5.84 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Quarterly Results of Operations (Unaudited) As the prior period reclassification to reflect the impacts of discontinued operations represented a significant retrospective change (see Note 4), the Company’s quarterly results of operations for the years ended December 31, 2021 and 2020 have been summarized in the tables below: Three Month Periods Ended March 31 June 30 September 30 December 31 2021 Total revenues $ 2,432.6 $ 2,542.3 $ 2,637.8 $ 2,574.9 Income before provision for income taxes 193.1 236.6 191.5 161.8 Net income from continuing operations 148.5 184.7 153.6 126.7 Net income attributable to common stockholders 158.3 203.4 882.4 123.6 Basic per share data: Income before provision for income taxes $ 3.26 $ 3.88 $ 3.24 $ 2.82 Net income from continuing operations $ 2.43 $ 3.03 $ 2.60 $ 2.21 Net income attributable to common stockholders $ 2.67 $ 3.34 $ 14.92 $ 2.16 Diluted per share data: Income before provision for income taxes $ 3.13 $ 3.86 $ 3.22 $ 2.80 Net income from continuing operations $ 2.41 $ 3.01 $ 2.58 $ 2.20 Net income attributable to common stockholders $ 2.64 $ 3.32 $ 14.83 $ 2.14 March 31 June 30 September 30 December 31 2020 Total revenues $ 2,448.7 $ 2,352.0 $ 2,376.7 $ 2,418.1 Income before provision for income taxes 100.1 209.3 112.5 158.9 Net income from continuing operations 148.6 164.7 88.0 119.1 Net income (loss) attributable to common stockholders 150.0 173.5 (34.9) 134.5 Basic per share data: Income before provision for income taxes $ 1.65 $ 3.47 $ 1.87 $ 2.68 Net income from continuing operations $ 2.36 $ 2.65 $ 1.39 $ 1.93 Net income (loss) attributable to common stockholders $ 2.48 $ 2.87 $ (0.58) $ 2.27 Diluted per share data: Income before provision for income taxes $ 1.57 $ 3.30 $ 1.86 $ 2.55 Net income from continuing operations $ 2.32 $ 2.59 $ 1.38 $ 1.91 Net income (loss) attributable to common stockholders $ 2.43 $ 2.81 $ (0.58) $ 2.23 Third quarter 2021 and first quarter 2021 net income from continuing operations includes $78.0 million and $34.5 million after-tax reportable catastrophes primarily related to Hurricane Ida and severe winter storms in Texas, respectively. Fourth quarter 2020 and third quarter 2020 net income from continuing operations includes $27.3 million and $87.0 million after-tax reportable catastrophes, respectively, due to several storms including Hurricane Laura. First quarter 2020 net income from continuing operations reflects the impact of a $79.3 million tax benefit related to the CARES Act, which allows the carryback of net operating losses to years taxed at higher federal income tax rates. Refer to Note 12 for additional information. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company and its subsidiaries lease office space and equipment under operating lease arrangements. Certain facility leases contain escalation clauses based on increases in the lessors’ operating expenses. As of December 31, 2021 and 2020, the lease liability was $60.5 million and $77.7 million, respectively, included in accounts payable and other liabilities other assets At December 31, 2021, the lease liability by maturity is as follows: 2022 $ 17.4 2023 13.8 2024 10.6 2025 6.5 2026 5.0 Thereafter 16.1 Total future lease payments 69.4 Less: Imputed interest (8.9) Total lease liability $ 60.5 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 $7.2 million and $7.6 million of letters of credit outstanding as of December 31, 2021 and 2020, respectively. Legal and Regulatory Matters The Company is involved in a variety of litigation and legal and regulatory proceedings relating to its current and past business operations and, from time to time, it may become involved in other such actions. The Company continues to defend itself vigorously in these proceedings. The Company has participated and may participate in settlements on terms that the Company considers reasonable. |
Schedule I _ Summary of Investm
Schedule I – Summary of Investments Other – Than – Investments in Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I – Summary of Investments Other – Than – Investments in Related Parties | Schedule I – Summary of Investments Other – Than – Investments in Related Parties December 31, 2021 Cost or Fair Value Amount at which (in millions) Fixed maturity securities: U.S. government and government agencies and authorities $ 83.0 $ 85.0 $ 85.0 States, municipalities and political subdivisions 142.2 148.5 148.5 Foreign governments 436.0 437.7 437.7 Asset-backed 411.1 423.0 423.0 Commercial mortgage-backed 466.7 473.7 473.7 Residential mortgage-backed 578.4 601.9 601.9 U.S. corporate 3,581.2 3,803.1 3,803.1 Foreign corporate 1,205.3 1,242.4 1,242.4 Total fixed maturity securities 6,903.9 7,215.3 7,215.3 Equity securities: Common stocks 57.5 151.1 151.1 Non-redeemable preferred stocks 239.4 261.3 261.3 Mutual funds 31.0 33.3 33.3 Total equity securities 327.9 445.7 445.7 Commercial mortgage loans on real estate 256.5 256.5 Short-term investments 247.8 247.8 Other investments 506.3 506.3 Total investments $ 8,242.4 $ 8,671.6 |
Schedule II _ Condensed Financi
Schedule II – Condensed Financial Statements (Parent Only) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II – Condensed Financial Statements (Parent Only) | Schedule II – Condensed Balance Sheet (Parent Only) December 31, 2021 2020 (in millions, except number Assets Investments: Equity investment in subsidiaries $ 6,415.7 $ 6,562.9 Fixed maturity securities available for sale, at fair value (amortized cost – $879.4 and $127.6 at December 31, 2021 and 2020, respectively) 881.9 139.2 Equity securities at fair value 3.9 4.7 Short-term investments 84.7 8.1 Other investments 109.6 108.7 Total investments 7,495.8 6,823.6 Cash and cash equivalents 82.9 277.4 Receivable from subsidiaries, net 77.8 47.4 Income tax receivable 11.4 41.4 Accrued investment income 5.1 1.2 Property and equipment, at cost less accumulated depreciation 228.9 142.8 Other assets 83.8 68.0 Assets held for sale (Note 4 to the Consolidated Financial Statements) 12.1 1,107.4 Total assets $ 7,997.8 $ 8,509.2 Liabilities Accounts payable and other liabilities $ 305.6 $ 304.9 Debt 2,202.5 2,252.9 Total liabilities 2,508.1 2,557.8 Commitments and Contingencies Stockholders’ equity 6.50% Series D mandatory convertible preferred stock, par value $1.00 per share, 0 and 2,875,000 shares authorized, issued and outstanding at December 31, 2021 and 2020, respectively (1) — 2.9 Common stock, par value $0.01 per share, 800,000,000 shares authorized, 58,050,202 and 62,967,808 shares issued and 55,754,113 and 57,967,808 shares outstanding at December 31, 2021 and 2020, respectively 0.7 0.6 Additional paid-in capital 1,695.0 1,956.8 Retained earnings 4,066.8 3,548.7 Accumulated other comprehensive income (150.0) 709.8 Treasury stock, at cost; 2,296,089 and 5,000,000 shares at December 31, 2021 and 2020, respectively (122.8) (267.4) Total stockholders’ equity 5,489.7 5,951.4 Total liabilities and stockholders’ equity $ 7,997.8 $ 8,509.2 (1) Each outstanding share of mandatory convertible preferred stock converted to common stock in March 2021. Refer to Note 20 to the Consolidated Financial Statements for further information. Schedule II – Condensed Income Statement (Parent Only) Years Ended December 31, 2021 2020 2019 (in millions) Revenues Net investment income $ 12.6 $ 3.4 $ 10.8 Net realized (losses) gains on investments and fair value changes to equity securities (1.3) 4.2 1.1 Fees and other income 290.5 231.7 198.6 Equity in net income of subsidiaries 816.2 691.7 518.4 Total revenues 1,118.0 931.0 728.9 Expenses General and administrative expenses 426.8 376.9 333.9 Interest expense 111.8 104.5 110.6 Loss on extinguishment of debt (Note 19 to the Consolidated Financial Statements) 20.7 — 31.4 Total expenses 559.3 481.4 475.9 Income from continuing operations before benefit for income taxes 558.7 449.6 253.0 Benefit for income taxes (54.8) (70.8) (53.4) Net income from continuing operations 613.5 520.4 306.4 Net income (loss) from discontinued operations (Note 4 to the Consolidated Financial Statements) 758.9 (77.7) 80.4 Net income 1,372.4 442.7 386.8 Less: Net income attributable to non-controlling interest — (0.9) (4.2) Net income attributable to stockholders $ 1,372.4 $ 441.8 $ 382.6 See the accompanying Notes to the Parent Only Condensed Financial Statements Schedule II – Condensed Statements of Comprehensive Income (Parent Only) Years Ended December 31, 2021 2020 2019 (in millions) Net income $ 1,372.4 $ 442.7 $ 386.8 Other comprehensive (loss) income: Change in unrealized gains on securities, net of taxes of $1.2, $— and $(4.3) for the years ended December 31, 2021, 2020 and 2019, respectively (7.8) 0.1 16.3 Change in unrealized gains on derivative transactions, net of taxes of $0.6, $0.6 and $0.4 for the years ended December 31, 2021, 2020 and 2019, respectively (2.3) (2.3) (1.3) Change in foreign currency translation, net of taxes of $(0.4), $— and $— for the years ended December 31, 2021, 2020 and 2019, respectively 1.4 (0.1) — Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, net of taxes of $(3.9), $(3.2) and $1.1 for the years ended December 31, 2021, 2020 and 2019, respectively 14.6 11.9 (4.2) Change in subsidiary other comprehensive income (865.7) 288.7 556.1 Total other comprehensive (loss) income (859.8) 298.3 566.9 Total comprehensive income 512.6 741.0 953.7 Less: Net income attributable to non-controlling interest — (0.9) (4.2) Total comprehensive income attributable to stockholders $ 512.6 $ 740.1 $ 949.5 See the accompanying Notes to the Parent Only Condensed Financial Statements Schedule II – Condensed Cash Flows (Parent Only) Years Ended December 31, 2021 2020 2019 (in millions) Operating Activities Net cash provided by operating activities - discontinued operations $ 11.7 $ 47.9 $ 57.6 Net cash provided by operating activities - continuing operations 385.5 596.1 492.6 Net cash provided by operating activities 397.2 644.0 550.2 Investing Activities Sales of: Fixed maturity securities available for sale 575.0 165.0 363.3 Equity securities 0.8 1.6 5.9 Other invested assets 4.7 9.6 15.8 Property, buildings and equipment (1) 0.1 37.3 3.3 Subsidiary (2) 1,342.9 — — Maturities, calls, prepayments, and scheduled redemption of: Fixed maturity securities available for sale 70.9 17.4 16.2 Purchases of: Fixed maturity securities available for sale (1,231.4) (45.7) (328.8) Equity securities — — (5.7) Other invested assets (0.7) (3.6) (15.2) Property and equipment and other (123.1) (75.8) (56.2) Capital contributed to subsidiaries (67.0) (579.2) (74.8) Return of capital contributions from subsidiaries 2.5 139.2 24.9 Change in short-term investments (76.6) (5.4) — Net cash used in investing activities - discontinued operations — (20.1) (3.5) Net cash provided by (used in) investing activities 498.1 (359.7) (54.8) Financing Activities Issuance of debt, net of issuance costs (Note 19 to the Consolidated Financial Statements) 347.2 243.7 346.7 Borrowings under secured revolving credit facility — 200.0 — Payments on secured revolving credit facility — (200.0) — Repayment of debt, including tender offer premium (419.8) — (379.6) Acquisition of common stock (839.3) (297.0) (271.8) Preferred stock dividends paid (4.7) (18.7) (18.7) Common stock dividends paid (157.6) (154.6) (151.3) Employee stock purchases and withholdings (15.6) (10.3) 13.3 Proceeds from transfer of rights to ACA recoverables (Note 4 to the Consolidated Financial Statements) — — 26.7 Proceeds repaid on transfer of rights to ACA recoverable — (26.7) — Net cash used in financing activities (1,089.8) (263.6) (434.7) Change in cash and cash equivalents (194.5) 20.7 60.7 Cash and cash equivalents at beginning of period 277.4 256.7 196.0 Cash and cash equivalents at end of period 82.9 277.4 256.7 Less: Cash and cash equivalents of discontinued operations at end of period — (26.7) (53.9) Cash and cash equivalents of continuing operations at end of period $ 82.9 $ 250.7 $ 202.8 (1) Amount for the year ended December 31, 2020 related to the sale of a building from the Parent to a subsidiary (which is eliminated for consolidated reporting). (2) Relates to the sale of the disposed Global Preneed business. For additional information, refer to Note 4. See the accompanying Notes to the Parent Only Condensed Financial Statements |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
Schedule III – Supplementary Insurance Information | Schedule III – Supplementary Insurance Information Segment Deferred Future Unearned Claims and Premium Net Benefits Amortization Other Property (in millions) Year Ended December 31, 2021 Global Lifestyle $ 8,654.2 $ 80.1 $ 17,102.0 $ 708.2 $ 6,720.3 $ 201.3 $ 1,333.1 $ 3,034.4 $ 2,966.3 $ 865.9 Global Housing 156.8 — 1,516.0 764.7 1,851.8 81.0 862.6 233.6 671.4 1,869.5 Corporate and Other — 333.1 5.7 123.0 — 32.1 — — 170.7 — Total segments $ 8,811.0 $ 413.2 $ 18,623.7 $ 1,595.9 $ 8,572.1 $ 314.4 $ 2,195.7 $ 3,268.0 $ 3,808.4 $ 2,735.4 Year Ended December 31, 2020 Global Lifestyle $ 7,236.0 $ 87.4 $ 15,818.0 $ 732.2 $ 6,442.2 $ 194.3 $ 1,412.6 $ 2,530.8 $ 3,024.2 $ 1,028.0 Global Housing 152.2 — 1,467.4 651.9 1,833.6 72.8 852.1 225.6 677.3 1,850.8 Corporate and Other (0.2) 1,271.1 7.7 226.2 — 18.5 0.2 — 187.4 — Total segments $ 7,388.0 $ 1,358.5 $ 17,293.1 $ 1,610.3 $ 8,275.8 $ 285.6 $ 2,264.9 $ 2,756.4 $ 3,888.9 $ 2,878.8 Year Ended December 31, 2019 Global Lifestyle $ 5,985.6 $ 97.5 $ 15,115.8 $ 729.5 $ 6,073.7 $ 250.8 $ 1,516.2 $ 1,882.4 $ 3,410.9 $ 1,083.9 Global Housing 136.1 — 1,436.0 651.6 1,885.1 95.2 869.5 221.5 711.6 1,833.7 Corporate and Other (0.2) 1,275.0 8.4 232.0 — 37.2 — — 360.3 — Total segments $ 6,121.5 $ 1,372.5 $ 16,560.2 $ 1,613.1 $ 7,958.8 $ 383.2 $ 2,385.7 $ 2,103.9 $ 4,482.8 $ 2,917.6 (1) Includes amortization of value of business acquired and underwriting, general and administration expenses. |
Schedule IV _ Reinsurance
Schedule IV – Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV – Reinsurance | Schedule IV – Reinsurance Direct amount Ceded to Assumed Net amount Percentage (in millions) Year Ended December 31, 2021 Life Insurance in Force $ 7,431.3 $ 4,953.8 $ 2.5 $ 2,480.0 0.1 % Premiums: Life insurance $ 199.6 $ 161.0 $ 0.2 $ 38.8 0.4 % Accident and health insurance 539.4 364.9 1.4 175.9 0.8 % Property and liability insurance 15,171.1 6,980.6 166.9 8,357.4 2.0 % Total earned premiums $ 15,910.1 $ 7,506.5 $ 168.5 $ 8,572.1 2.0 % Benefits: Life insurance $ 180.6 $ 163.7 $ — $ 16.9 (0.2) % Accident and health insurance 222.2 205.0 — 17.2 (0.3) % Property and liability insurance 5,868.6 3,846.1 139.1 2,161.6 6.4 % Total policyholder benefits $ 6,271.4 $ 4,214.8 $ 139.1 $ 2,195.7 6.3 % Year Ended December 31, 2020 Life Insurance in Force $ 8,270.1 $ 5,842.4 $ 3.8 $ 2,431.5 0.2 % Premiums: Life insurance $ 172.9 $ 128.9 $ 0.2 $ 44.2 0.4 % Accident and health insurance 494.1 317.4 0.2 176.9 0.1 % Property and liability insurance 14,245.0 6,323.2 132.9 8,054.7 1.6 % Total earned premiums $ 14,912.0 $ 6,769.5 $ 133.3 $ 8,275.8 1.6 % Benefits: Life insurance $ 49.8 $ 34.9 $ (0.7) $ 14.2 (4.6) % Accident and health insurance 161.6 111.2 (4.0) 46.4 (8.7) % Property and liability insurance 5,461.5 3,384.2 127.0 2,204.3 5.8 % Total policyholder benefits $ 5,672.9 $ 3,530.3 $ 122.3 $ 2,264.9 5.4 % Year Ended December 31, 2019 Life Insurance in Force $ 9,026.1 $ 5,560.4 $ 2.8 $ 3,468.5 0.1 % Premiums: Life insurance $ 223.5 $ 175.9 $ 0.2 $ 47.8 0.4 % Accident and health insurance 538.3 361.3 0.3 177.3 0.2 % Property and liability insurance 13,259.4 5,738.0 212.3 7,733.7 2.7 % Total earned premiums $ 14,021.2 $ 6,275.2 $ 212.8 $ 7,958.8 2.7 % Benefits: Life insurance $ 67.9 $ 49.9 $ (0.4) $ 17.6 (2.4) % Accident and health insurance 217.7 193.5 — 24.2 0.2 % Property and liability insurance 5,249.3 3,118.7 213.3 2,343.9 9.1 % Total policyholder benefits $ 5,534.9 $ 3,362.1 $ 212.9 $ 2,385.7 8.9 % |
Schedule V _ Valuation and Qual
Schedule V – Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V – Valuation and Qualifying Accounts | Schedule V – Valuation and Qualifying Accounts Balance at Charged to Charged Deductions Balance at (in millions) For the Year Ended December 31, 2021 Valuation allowance for foreign deferred tax assets $ 27.6 $ (2.5) $ — $ — $ 25.1 Allowance for credit losses: Available for sale fixed maturity securities 1.2 (1.2) — — — Commercial mortgage loans on real estate 1.6 (0.5) — — 1.1 Iké Loan 1.4 (1.4) — — — Premiums and accounts receivable 13.3 (1.4) (0.3) 2.2 9.4 Dealer loan receivable 1.8 2.5 — 1.8 2.5 Reinsurance recoverables 24.6 (1.5) — 18.1 5.0 Total $ 71.5 $ (6.0) $ (0.3) $ 22.1 $ 43.1 For the Year Ended December 31, 2020 Valuation allowance for foreign deferred tax assets $ 76.6 $ (46.7) $ — $ 2.3 $ 27.6 Allowance for credit losses: Available for sale fixed maturity securities — 1.2 — — 1.2 Commercial mortgage loans on real estate 0.4 1.2 — — 1.6 Iké Loan — 1.4 — — 1.4 Premiums and accounts receivable 14.7 2.7 1.4 5.5 13.3 Dealer loan receivable 1.7 — 0.1 — 1.8 Reinsurance recoverables 2.8 1.1 20.7 — 24.6 Total $ 96.2 $ (39.1) $ 22.2 $ 7.8 $ 71.5 For the Year Ended December 31, 2019 Valuation allowance for foreign deferred tax assets $ 26.4 $ 50.2 $ — $ — $ 76.6 Allowance for credit losses: Commercial mortgage loans on real estate 0.4 — — — 0.4 Premiums and accounts receivable 15.8 1.2 — 2.3 14.7 Dealer loan receivable 1.6 0.1 — — 1.7 Reinsurance recoverables 0.3 2.5 — — 2.8 Total $ 44.5 $ 54.0 $ — $ 2.3 $ 96.2 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis Of Presentation | Basis of PresentationThe Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Amounts are presented in United States of America (“U.S.”) Dollars and all amounts are in millions, except for number of shares, per share amounts and number of securities. Certain prior period amounts have been reclassified to reflect the impacts of businesses held for sale and discontinued operations as further summarized in Note 4. |
Principles Of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company and its controlled subsidiaries, generally through a greater than 50% ownership of voting rights and voting interests. Equity investments in entities that the Company does not consolidate, but where the Company has significant influence or where the Company has more than a minor influence over the entity’s operating and financial policies, are accounted for under the equity method. Non-controlling interest consists of equity that is not attributable directly or indirectly to the Company. All material inter-company transactions and balances are eliminated in consolidation. In order to facilitate the Company’s closing process, financial information from certain foreign subsidiaries and affiliates is reported on a one to three-month lag. |
Use of Estimates | Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts. The items affected by the use of estimates include but are not limited to, investments, reinsurance recoverables, premium and accounts receivables, deferred acquisition costs (“DAC”), value of business acquired (“VOBA”), deferred income taxes and associated valuation allowances, goodwill, intangible assets, future policy benefits and expenses, unearned premiums, claims and benefits payable, deferred gain on disposal of businesses, pension and post-retirement liabilities and commitments and contingencies. The estimates are sensitive to market conditions, investment yields, mortality, morbidity, commissions and other acquisition expenses, policyholder behavior and other factors. Actual results could differ from the estimates recorded. The Company believes all amounts reported are reasonable and adequate. |
Fair Value | Fair Value The Company uses an exit price for its fair value measurements. An exit price is defined as the amount received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In measuring fair value, the Company gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. See Note 10 for additional information. |
Foreign Currency | Foreign Currency For foreign affiliates where the local currency is the functional currency, unrealized foreign currency translation gains and losses net of deferred income taxes have been reflected in accumulated other comprehensive income (“AOCI”). For Canada, Argentina, Brazil, Chile and Mexico, deferred taxes have not been provided for unrealized currency translation gains and losses since the Company intends to indefinitely reinvest the earnings in these other jurisdictions. Transaction gains and losses on assets and liabilities denominated in foreign currencies are recorded in underwriting, general and administrative expenses in the consolidated statements of operations during the period in which they occur. 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, as a result of the classification of Argentina’s economy as highly inflationary, the functional currency of our Argentina subsidiaries was changed from the local currency to U.S. Dollars. The subsidiaries’ non-U.S. Dollar denominated monetary assets and liabilities have been subject to remeasurement since July 1, 2018. For the years ended December 31, 2021, 2020 and 2019, the remeasurement resulted in $7.0 million, $7.5 million and $18.4 million, respectively, of net pre-tax losses which the Company classified within underwriting, general and administrative expenses in the consolidated statements of operations. Based on the relative size of the subsidiaries’ operations and net assets subject to remeasurement, the Company does not anticipate the ongoing remeasurement to have a material impact on the Company’s results of operations or financial condition. |
Variable Interest Entities | Variable Interest Entities The Company may enter into agreements with other entities that are deemed to be variable interest entities (“VIEs”). Entities that do 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 are referred to as VIEs. A VIE is consolidated by the variable interest holder that is determined to have the controlling financial interest (the “primary beneficiary”) as a result of having both the power to direct the activities that most significantly impact the VIE’s economic performance and the obligation to absorb losses or right to receive benefits from the VIE that could potentially be significant to the VIE. The Company determines whether it is the primary beneficiary of an entity subject to consolidation based on a qualitative assessment of the VIE’s capital structure, contractual terms, the nature of the VIE’s operations and purpose and the Company’s relative exposure to the related risks of the VIE on the date it becomes initially involved in the VIE. The Company only holds non-consolidated VIEs as of December 31, 2021 and 2020. Prior to the deconsolidation in the third quarter of 2020, the consolidated collateralized loan obligation (“CLO”) entities met the definition of a collateralized financing entity. Refer to Note 4 for additional information on the sale of the Company’s CLO asset management platform. |
Investments | Investments Fixed maturity securities are classified as available-for-sale as defined in the investments guidance and are reported at fair value. If the fair value is higher than the amortized cost for fixed maturity securities, the excess is an unrealized gain; and, if lower than amortized cost, the difference is an unrealized loss. Net unrealized gains and losses on securities classified as available-for-sale, less deferred income taxes, are included in AOCI. Effective January 1, 2020, the Company adopted certain changes to the accounting and reporting for impairments involving available for sale securities, including presentation of credit-related impairments as an allowance rather than as an other-than-temporary impairment, eliminating duration of unrealized losses as a consideration when assessing recognition of an impairment, recognition of credit impairments upon purchase of securities as applicable, and requiring reversals of previously recognized credit-related impairments when applicable. For available for sale fixed maturity securities in an unrealized loss position for which the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than the amortized cost basis, changes to the credit rating of the security by a nationally recognized statistical ratings organization and any adverse conditions specifically related to the security, industry or geographic area, among other factors. If this assessment indicates a potential credit loss may exist, the present value of cash flows expected to be collected are compared to the security’s amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit-related impairment exists, and a charge to income and an associated allowance for credit losses is recorded for the credit-related impairment. Any impairment not related to credit losses is recorded through other comprehensive income. The amount of the allowance for credit losses is limited to the amount by which fair value is less than the amortized cost basis. Upon recognizing a credit-related impairment, the cost basis of the security is not adjusted. Subsequent changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. For fixed maturities where the Company records a credit loss, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. Write-offs are charged against the allowance when management concludes the financial asset is uncollectible. For fixed maturities where the Company expects a recovery in value, the effective yield method is utilized, and the investment is amortized to par. For available for sale fixed maturity securities that the Company intends to sell, or for which it is more likely than not that the Company will be required to sell before recovery of its amortized cost basis, the entire impairment loss, or difference between the fair value and amortized cost basis of the security, is recognized in net realized gains (losses) on investments and fair value changes to equity securities. The new cost basis of the security is the previous amortized cost basis less the impairment recognized and is not adjusted for any subsequent recoveries in fair value. The Company reports receivables for accrued investment income separately from fixed maturities available for sale and elected not to measure allowances for credit losses for accrued investment income as uncollectible balances are written off in a timely manner. Equity securities that have readily determinable fair values are measured at fair value with changes in fair value recognized in net realized gains (losses) on investments and fair value changes to equity securities on the Company’s consolidated statements of operations. The Company has certain equity investments that do not have readily determinable fair values and the Company has elected the measurement alternative to carry such investments at cost, less impairment and to mark to fair value when observable prices in identical or similar investments from the same issuer occur. Equity securities accounted for under the measurement alternative are impaired if a qualitative assessment based upon several indicators such as earnings performance, offers to sell or purchase, ability to continue as a going concern and macroeconomic factors indicates the equity investment is impaired and the fair value of the investment is less than its carrying value. If a qualitative assessment indicates impairment, a quantitative analysis, which uses probability weighted potential outcomes, is performed to determine the amount of the impairment to be recognized that result in a fair value measurement. Equity securities accounted for under the measurement alternative are included within Other investments in the consolidated balance sheets. Commercial mortgage loans on real estate are reported at unpaid principal balances, adjusted for amortization of premium or discount, less any allowance for credit losses. The allowance for the Company’s commercial mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, utilizing a probability-of-default and loss given default methodologies, which incorporate various probability weighted economic scenarios. The probability of default is estimated using macroeconomic factors as well as individual loan characteristics, including loan-to-value (“LTV”) and debt service coverage ratios (“DSC”), loan term, collateral type, geography and underlying credit. The loss given default is driven primarily by the type and value of underlying collateral, and to a lesser extent by expected liquidation costs and time to recovery. Each loan is analyzed individually based on loan-specific data elements to estimate the expected loss and then aggregated. The Company places loans on nonaccrual status after 90 days of delinquent payments (unless the loans are secured and in the process of collection). A loan may be placed on nonaccrual status before this time if information is available that suggests collection is unlikely. The Company charges off loan and accrued interest balances that are deemed uncollectible. Charge offs are recorded to net income in the period deemed uncollectible. Refer to Note 5 for further details on the allowance for credit losses on commercial mortgage loans. Prior to January 1, 2020, the allowance for loan loss was based on management’s analysis of factors including actual loan loss experience, specific events based on geographical, political or economic conditions, industry experience, loan groupings that have probable and estimable losses and individually impaired loan loss analysis. A loan was considered individually impaired when it became probable that the Company would be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. Indicative factors of impairment included whether the loan was current, the value of the collateral and the financial position of the borrower. If a loan was individually impaired, the Company used one of the following valuation methods based on the individual loan’s facts and circumstances to measure the impairment amount: (1) the present value of expected future cash flows, (2) the loan’s observable market price, or (3) the fair value of collateral. Changes in the allowance for loan losses was recorded in net realized losses on investments, excluding other-than-temporary impairment (“OTTI”) losses. Short-term investments include securities and other investments with durations of one year or less, but greater than three months, between the date of purchase and maturity. These amounts are reported at cost or amortized cost, which approximates fair value. Other investments consist primarily of investments in joint ventures, partnerships, equity investments that do not have readily determinable fair values, invested assets associated with a modified coinsurance arrangement, invested assets associated with the Assurant Investment Plan (the “AIP”), the American Security Insurance Company Investment Plan (the “ASIC”) and the Assurant Deferred Compensation Plan (the “ADC”), as well as policy loans. The joint ventures and partnerships are valued according to the equity method of accounting. In applying the equity method, the Company uses financial information provided by the investee, generally on a three-month lag. The invested assets related to the modified coinsurance arrangement, the AIP, the ASIC and the ADC are classified as trading securities. Policy loans are reported at unpaid principal balances, which do not exceed the cash surrender value of the underlying policies. Realized gains and losses on sales of investments are recognized on the specific identification basis. Investment income is recorded as earned and reported net of investment expenses. The Company uses the interest method to recognize interest income on its commercial mortgage loans. The Company anticipates prepayments of principal in the calculation of the effective yield for mortgage-backed securities and structured securities. The retrospective method is used to adjust the effective yield for the majority of the Company’s mortgage-backed and structured securities. For credit-sensitive structured securities, the effective yield is recalculated on a prospective basis. |
Total OTTI Losses | Total OTTI Losses Prior to January 1, 2020, the Company separated OTTI losses of a debt security into two components of credit and non-credit losses. For debt securities with credit losses and non-credit losses or gains, total OTTI losses was the total of the decline in fair value from either the most recent OTTI determination or a prior period end in which the fair value declined until the current period end valuation date. This amount did not include any securities that had fair value increases. For debt securities that the Company had either the intent to sell or it was more likely than not that it would be required to sell below amortized cost, total OTTI losses were the amount by which the fair value of the security was less than its amortized cost basis at the period end valuation date and the decline in fair value was deemed to be OTTI. The amount of the OTTI related to a credit loss was recognized in earnings, and the amount of the OTTI related to other, non-credit factors ( e.g. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid securities and other investments with durations of three months or less between the date of purchase and maturity to be cash equivalents. These amounts are carried at cost, which approximates fair value. Cash balances are reviewed at the end of each reporting period to determine if negative cash balances exist. If negative cash balances exist, the cash accounts are netted with other positive cash accounts of the same bank provided the right of offset exists between the accounts. If the right of offset does not exist, the negative cash balances are reclassified to accounts payable and other liabilities. Restricted cash and cash equivalents, of $27.9 million and $14.6 million at December 31, 2021 and 2020, respectively, principally related to cash deposits involving insurance programs with restrictions as to withdrawal and use, are classified within cash and cash equivalents in the consolidated balance sheets. |
Reinsurance | Reinsurance For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. Reinsurance recoverables include amounts related to paid benefits and estimated amounts related to unpaid policy and contract claims, future policyholder benefits and policyholder contract deposits. The cost of reinsurance is recognized as a reduction to premiums earned over the terms of the underlying reinsured policies. Amounts recoverable from reinsurers are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefits reserves and are reported in the consolidated balance sheets. The cost of reinsurance related to long-duration contracts is recognized over the life of the underlying reinsured policies. The ceding of insurance does not discharge the Company’s primary liability to insureds, thus a credit exposure exists to the extent that any reinsurer is unable to meet the obligation assumed in the reinsurance agreements. To mitigate this exposure to reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and typically holds collateral (in the form of funds withheld, trusts and letters of credit) as security under the reinsurance agreements. Effective January 1, 2020, the Company adopted the expected credit loss model for reinsurance recoverables. The Company uses a probability of default and loss given default methodology in estimating the allowance, whereby the credit ratings of reinsurers are used in determining the probability of default. The allowance is established for reinsurance recoverables on paid and unpaid future policy benefits and claims and benefits. Prior to applying default factors, the net exposure to credit risk is reduced for any collateral for which the right of offset exists, such as funds withheld, assets held in trust and letters of credit, which are part of the reinsurance arrangements, with adjustments to include consideration of credit exposure on the collateral. The methodology used by the Company incorporates historical default factors for each reinsurer based on their credit rating using comparably rated bonds as published by a major ratings service. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing and other relevant factors. Prior to January 1, 2020, an allowance for doubtful accounts was recorded on the basis of periodic evaluations of balances due from reinsurers (net of collateral), reinsurer solvency, historical collection experience and current economic conditions. Funds held under reinsurance represent amounts contractually held from assuming companies in accordance with reinsurance agreements, primarily from collateral considerations. Reinsurance premiums assumed are calculated based upon payments received from ceding companies together with accrual estimates, which are based on both payments received and in force policy information received from ceding companies. Any subsequent differences arising on such estimates are recorded in the period in which they are determined. |
Premiums and Accounts Receivable | Premiums and Accounts Receivable Premiums and accounts receivable includes insurance premiums receivable from policyholders and amounts due from sponsors or agents. Effective January 1, 2020, the Company adopted the expected credit loss model for premiums and accounts receivable. For receivables due directly from the insured or consumer, the allowance for credit losses is generally calculated by aging the receivable balances and applying default factors based on the Company’s historical collection data. For receivables due from product sponsors or agents, receivable balances are generally segregated by the sponsor or agent and an appropriate default factor is determined based on creditworthiness, billing terms and aging of balances. The financial exposure of a credit loss is determined net of offsets (such as related unearned premium reserves for consumer receivables and receivables net of commissions payable, profit share liabilities and captive reinsurance for balances due from sponsors/agents) prior to applying a default factor. Prior to January 1, 2020, an allowance for doubtful accounts was recorded on the basis of periodic evaluations of balances due from third parties, considering historical collection experience, solvency and current economic conditions. |
Deferred Acquisition Costs | Deferred Acquisition Costs Only direct and incremental costs associated with the successful acquisition of new or renewal insurance contracts are deferred to the extent that such costs are deemed recoverable from future premiums or gross profits. Acquisition costs primarily consist of commissions and premium taxes. Certain direct response advertising expenses are deferred when the primary purpose of the advertising is to elicit sales to customers who can be shown to have specifically responded to the advertising and the direct response advertising results in probable future benefits. All other acquisition-related costs, including those related to general advertising and solicitation, market research, agent training, product development, unsuccessful sales and underwriting efforts, as well as all indirect costs, are expensed as incurred. Premium deficiency testing is performed annually and generally reviewed quarterly. Such testing involves the use of assumptions including the anticipation of investment income to determine if anticipated future policy premiums are adequate to recover all DAC and related claims, benefits and expenses. To the extent a premium deficiency exists, it is recognized immediately by a charge to the consolidated statement of operations and a corresponding reduction in DAC. If the premium deficiency is greater than unamortized DAC, a loss (and related liability) is recorded for the excess deficiency. Short Duration Contracts Acquisition costs relating to extended service contracts, vehicle service contracts, mobile device protection, credit insurance, lender-placed homeowners insurance and flood, multifamily housing and manufactured housing insurance are amortized over the term of the contracts in relation to premiums earned. These acquisition costs consist primarily of advance commissions paid to agents. Long Duration Contracts DAC related to traditional long duration contracts such as long-term care and long-term disability insurance is amortized over the appropriate premium paying period in proportion to the actual and expected future gross premiums that were set at contract issue. |
Property and Equipment | Property and Equipment Property and equipment are reported at cost less accumulated depreciation. Depreciation is calculated on a straight-line basis over estimated useful lives with a maximum of 39.5 years for buildings, a maximum of seven years for furniture and a maximum of five years for equipment. Expenditures for maintenance and repairs are charged to income as incurred. Expenditures for improvements are capitalized and depreciated over the remaining useful life of the asset. Property and equipment also include capitalized software costs, comprised of purchased software as well as certain internal and external costs incurred during the application development stage that directly relate to obtaining, developing or upgrading internal use software. Such costs are capitalized and amortized using the straight-line method over their estimated useful lives, not to exceed 15 years. Property and equipment are assessed for impairment when impairment indicators exist. |
Goodwill | Goodwill Goodwill represents the excess of acquisition costs over the net fair value of identifiable assets acquired and liabilities assumed in a business combination. Goodwill is deemed to have an indefinite life and is not amortized, but rather is tested at least annually for impairment. The Company performs the annual goodwill impairment test as of October 1 each year, or more frequently if indicators of impairment exist. Such indicators include: a significant adverse change in legal factors, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a significant decline in the Company’s expected future cash flows due to changes in company-specific factors or the broader business climate. The evaluation of such factors requires considerable management judgment. Goodwill is tested for impairment at the reporting unit level, which is either at the operating segment or one level below, if that component is a business for which discrete financial information is available and segment management regularly reviews such information. Components within an operating segment can be aggregated into one reporting unit if they have similar economic characteristics. At the time of the annual goodwill test, the Company has the option to first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. The Company is required to perform an additional quantitative step if it determines qualitatively that it is more likely than not (likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount, including goodwill. Otherwise, no further testing is required. |
Other Intangible Assets | Other Intangible Assets Intangible assets that have finite lives, including customer contracts, customer relationships and marketing relationships, are amortized over their estimated useful lives based on the pattern in which the intangible asset is consumed, which may be other than straight-line. Estimated useful lives of finite intangible assets are required to be reassessed on at least an annual basis. For intangible assets with finite lives, impairment is recognized if the carrying amount is not recoverable and exceeds the fair value of the other intangible asset. Generally, other intangible assets with finite lives are only tested for impairment if there are indicators of impairment (“triggers”) identified. Triggers include a significant adverse change in the extent, manner or length of time in which the intangible asset is being used or a significant adverse change in legal factors or in the business climate that could affect the value of the other intangible asset. VOBA represents the value of expected future profits in unearned premium for insurance contracts acquired in an acquisition. For vehicle service contracts and extended service contracts, such as those purchased in connection with the TWG acquisition, the amount is determined using estimates, for premium earnings patterns, paid loss development patterns, expense loads and discount rates applied to cash flows that include a provision for credit risk. The amount determined represents the purchase price paid to the seller for producing the business. For vehicle service contracts and extended service contracts, VOBA is amortized consistent with the premium earning patterns of the underlying in-force contracts. For limited payment policies, preneed life insurance policies, universal life policies and annuities, VOBA is determined using estimates for mortality, lapse, |
Other Assets | Other Assets |
Separate Accounts | Separate Accounts |
Reserves | Reserves Reserves are established using generally accepted actuarial methods and reflect judgments about expected future premium and claim payments. Factors used in their calculation include experience derived from historical claim payments, expected future premiums and actuarial assumptions. Calculations incorporate assumptions about the incidence of incurred claims, the extent to which all claims have been reported, reporting lags, expenses, inflation rates, future investment earnings, internal claims processing costs and other relevant factors. The estimation of reserves includes an element of uncertainty given that management is using historical information and methods to project future events and reserve outcomes. The recorded reserves represent the Company’s best estimate at a point in time of the ultimate costs of settlement and administration of a claim or group of claims based upon actuarial assumptions and projections using facts and circumstances known at the time of calculation. The adequacy of reserves may be impacted by future trends in claims severity, frequency, judicial theories of liability and other factors. These variables are affected by both external and internal events, including: changes in the economic cycle, inflation, changes in repair costs, natural or human-made catastrophes, judicial trends, legislative changes and claims handling procedures. |
Long Duration Contracts | Long Duration Contracts The Company’s long duration contracts, after the sale of the disposed Global Preneed business, primarily comprises run-off blocks of long-term care, long-term disability policies, universal life and deferred annuity policies. Future policy benefits and expense reserves for universal life insurance policies and deferred annuity contracts, consist of policy account balances before applicable surrender charges and certain deferred policy initiation fees that are being recognized in income over the terms of the policies. Policy benefits charged to expense during the period include amounts paid in excess of policy account balances and interest credited to policy account balances. Future policy benefits and expense reserves for long-term care and long-term disability policies fully covered by reinsurance are equal to the present value of future benefits to policyholders plus related expenses less the present value of future net premiums. These amounts are estimated based on assumptions as to the discount, inflation, mortality, morbidity and withdrawal rates as well as other assumptions that are based on the Company’s experience. These assumptions reflect anticipated trends and include provisions for adverse deviations. Claims and benefits payable for policies fully covered by reinsurance are equal to the present value of future benefit payments and related expenses. These amounts are estimated based on assumptions as to inflation, mortality, morbidity and discount rates as well as other assumptions that are based on the Company’s experience. |
Short Duration Contracts | Short Duration Contracts The Company’s short duration contracts include products and services in the Global Housing and Global Lifestyle segments, and Assurant Employee Benefits policies fully covered by reinsurance and certain medical policies no longer offered. The main product lines for Global Housing include lender-placed homeowners and flood, Multifamily Housing and manufactured housing. For Global Lifestyle, the main product lines include extended service contracts, vehicle services contracts, mobile device protection and credit insurance. For short duration contracts, claims and benefits payable reserves are recorded when insured events occur. The liability is based on the expected ultimate cost of settling the claims. The claims and benefits payable reserves include (1) case reserves for known but unpaid claims as of the balance sheet date; (2) incurred but not reported (“IBNR”) reserves for claims where the insured event has occurred but has not been reported to the Company as of the balance sheet date; and (3) loss adjustment expense reserves for the expected handling costs of settling the claims. Factors used in the calculation include experience derived from historical claim payments and actuarial assumptions including loss development factors and expected loss ratios. The Company has exposure to asbestos, environmental and other general liability claims arising from its participation in various reinsurance pools from 1971 through 1985. This exposure arose from a short duration contract that the Company discontinued writing many years ago. The Company carries case reserves for these liabilities as recommended by the various pool managers and IBNR reserves. Estimation of these liabilities is subject to greater than normal variation and uncertainty due to the general lack of sufficiently detailed data, reporting delays and absence of a generally accepted actuarial methodology for determining the exposures. There are significant unresolved industry legal issues, including such items as whether coverage |
Debt | Debt |
Contingencies | Contingencies |
Retirement of Treasury Stock | Retirement of Treasury Stock |
Premiums | Premiums Short Duration Contracts The Company’s short duration contracts revenue is recognized over the contract term in proportion to the amount of insurance protection provided. Premiums revenue from vehicle and extended service contracts are earned over the term of the contract, which are typically between three Premiums for lender-placed homeowners and flood insurance, Multifamily Housing, manufactured housing, are generally earned on a pro-rata basis over the term of the policies, which are typically over twelve months. Premiums for the Company’s previously sold long-term care insurance and traditional life insurance contracts, which are fully reinsured, are recognized as revenue when due from the policyholder. Reinsurance reinstatement premiums are recognized in the same period as the loss event that gave rise to the reinstatement premium and are netted against net earned premiums in the consolidated statements of operations. Long Duration Contracts |
Fees and Other Income | Fees and Other Income The Company derives fees and other income from providing administrative services, mobile-related services and mortgage property risk management services. These fees are recognized as the services are performed. The Company reports revenues related to long duration and short duration insurance contracts as premiums, including insurance contracts written by non-insurance affiliates, such as certain extended service contracts, consistent with the Company’s principal business of insurance. Components of consideration paid by the insured are generally not separated as fees and other income. However, when a component of the consideration paid by an insured both does not involve fulfilling the insurance obligation (in that it does not involve acquisition, claims or other administrative aspects of the insurance contract) and the related service could have been written as a separate contract, it is reported in fees and other income. Dealer obligor service contracts are sales in which an unaffiliated retailer/dealer is the obligor and the Company provides administrative services only. For these contract sales, the Company recognizes administrative fee revenue on a pro-rata basis over the terms of the service contract which correspond to the period in which the services are performed. The unexpired portion of fee revenues are deferred and amortized over the term of the contracts. These unexpired amounts are reported in accounts payable and other liabilities on the consolidated balance sheets. |
Underwriting, General and Administrative Expenses | Underwriting, General and Administrative Expenses |
Income Taxes | Income Taxes Current federal income taxes are recognized based upon amounts estimated to be payable or recoverable as a result of taxable operations for the current year. Deferred income taxes are recorded for temporary differences between the financial reporting basis and income tax basis of assets and liabilities, based on enacted tax laws and statutory tax rates applicable to the periods in which the Company expects the temporary differences to reverse. A valuation allowance is established for deferred tax assets when it is more likely than not that an amount will not be realized. The impact of changes in tax rates on all deferred tax assets and liabilities are required to be reflected within income on the enactment date, regardless of the financial statement component where the deferred tax originated. The Company classifies net interest expense related to tax matters and any applicable penalties as a component of income tax expense. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts that can be converted into common stock were exercised as of the end of the period, if dilutive. Restricted stock and restricted stock units that have non-forfeitable rights to dividends or dividend equivalents are included in calculating basic and diluted earnings per common share under the two-class method. |
Comprehensive Income | Comprehensive IncomeComprehensive income is comprised of net income, net unrealized gains and losses on foreign currency translation, net unrealized gains and losses on securities classified as available for sale, and expenses for pension and post-retirement plans, less deferred income taxes. |
Deferred Gain on Disposal Of Businesses | Deferred Gain on Disposal of Businesses |
Leases | Leases The Company records expenses for operating leases on a straight-line basis over the lease term. The Company recognizes assets and liabilities associated with leases on the consolidated balance sheet. The Company and its subsidiaries lease office space and equipment under operating lease arrangements for which the Company is the lessee. Right-of-use asset, lease liabilities and deferred rent liability related to operating leases with terms in excess of 12 months are recognized when the Company is the lessee. |
Recent Accounting Pronouncements - Adopted and Not Yet Adopted | Recent Accounting Pronouncements – Adopted Measurement of credit losses on financial instruments held at amortized cost (“CECL”) : In June 2016, the Financial Accounting Standards Board (“FASB”) issued amended guidance on reporting credit losses for assets held at amortized cost and available for sale debt securities. For assets held at amortized cost, the amended guidance eliminates the probable recognition threshold and instead requires an entity to reflect the current estimate of all expected credit losses. For available for sale debt securities, credit losses are measured in a manner similar to accounting requirements in effect prior to adoption; however, the amended guidance requires that credit-related impairment losses be presented as an allowance rather than as a permanent impairment. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, premium receivables, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company adopted this standard as of January 1, 2020. Refer to Note 5 for additional information. Customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract: In August 2018, the FASB issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. For these arrangements, the guidance also limits the period to expense capitalized implementation costs based on the term of the hosting agreement, including the noncancellable period of the arrangement plus periods covered by options to extend the arrangement that are reasonably certain of exercise. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments. The Company adopted the guidance on its effective date of January 1, 2020 with no material impact on its financial position and results of operations. Simplifying the Accounting for Income Taxes : In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplify areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The Company adopted this standard as of January 1, 2021, with no material impact on its financial position or results of operations. Recent Accounting Pronouncements – Not Yet Adopted Targeted improvements to the accounting for long-duration contracts : In August 2018, the FASB issued guidance that provides targeted improvements to the accounting for long-duration contracts. The guidance includes the following primary changes: assumptions supporting benefit reserves will no longer be locked-in but must be updated at least annually with the impact of changes to the liability reflected in earnings (except for discount rates); the discount rate assumptions will be based on upper-medium grade (low credit risk) fixed-income instrument yield instead of the earnings rate of invested assets; the discount rate must be evaluated at each reporting date and the impact of changes to the liability estimate as a result of updating the discount rate assumption is required to be recognized in other comprehensive income; the provision for adverse deviation is eliminated; and premium deficiency testing is eliminated. Other noteworthy changes include the following: differing models for amortizing deferred acquisition costs will become uniform for all long-duration contracts based on a constant rate over the expected term of the related in-force contracts; all market risk benefits associated with deposit contracts must be reported at fair value with changes reflected in income except for changes related to credit risk which will be recognized in other comprehensive income; and disclosures will be expanded to include disaggregated roll forwards of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions and methods used in measurement. The guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. Generally, the amendments are applied retrospectively as of the beginning of the earliest period presented with two transition options available for changing the assumptions. With the sale of the disposed Global Preneed business in August 2021, the adoption of this standard expected to have no material impact on the Company’s financial position and results of operations. Facilitation of the Effects of Reference Rate Reform on Financial Reporting: In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The relief is applicable only to legacy contracts if the amendments made to the agreements are solely for reference rate reform activities. The provisions must be applied consistently for all relevant transactions other than derivatives, which may be applied at a hedging relationship level. The guidance is effective upon issuance. The guidance on contract modifications is applied prospectively from any date beginning March 12, 2020. Unlike other topics, the provisions of this update are only available until December 31, 2022, when the reference rate replacement activity is expected to have been completed. The adoption of this standard is expected to have no material impact on the Company’s financial position and results of operations. Improvements to Convertible Instruments and Contracts in an Entity’s Own Equity : In August 2020, the FASB issued guidance that simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The guidance removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more contracts in an entity’s own equity to qualify for it. The guidance also simplifies the diluted earnings per common share (“EPS”) calculation in the areas of convertible instruments and instruments that qualify for the derivatives scope exception for contracts in an entity’s own equity to address accounting for the guidance changes to the classification, recognition and measurement. The guidance is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The adoption of this standard is expected to have no material impact on the Company’s financial position and results of operations. Recognition and Measurement of Revenue Contracts with Customers Acquired in a Business Combination : In October 2021, the FASB issued guidance to improve comparability after a business combination is reported in the acquirer’s financial statements by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. Generally, the acquirer will recognize the acquired contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in the acquisition accounting. Under the amended guidance, the acquirer should account for the acquired revenue contracts as if it had originated the contracts. The amendments provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. |
Business Held for Sale and Discontinued Operations | The Company reports a business as held for sale when management has received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the ensuing year and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less costs to sell, which is required to be remeasured each reporting period. If the carrying amount of the business exceeds its estimated fair value, which is based on the estimated sales price of the transaction, less costs to sell, a loss is recognized. Depreciation is not recorded on assets of a business classified as held for sale. The Company reports the results of operations of a business as discontinued operations if (i) the business is classified as held for sale; (ii) the business represents a strategic shift that will have a major impact on the Company’s operations and financial results; (iii) the operations and cash flows of the business have been or will be eliminated from the ongoing operations of the Company as a result of the disposal transaction; and (iv) the Company will not have any significant continuing involvement in the operations of the business after the disposal transaction. The results of discontinued operations are reported in net income from discontinued operations in the consolidated statements of operations for all periods presented, commencing in the period in which the business is either disposed of or is classified as held for sale, including any gain or loss recognized on closing or adjustment of the carrying amount to fair value less costs to sell. Assets and liabilities related to a business classified as held for sale which also meets the criteria for discontinued operations are segregated in the consolidated balance sheets for the current and prior periods presented. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Reserve Information | The following table provides reserve information as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Claims and Benefits Claims and Benefits Future Unearned Case Incurred Future Unearned Case Incurred Long Duration Contracts: Disposed and runoff businesses (1) $ 413.2 $ 2.2 $ 80.0 $ 7.7 $ 1,358.5 $ 4.0 $ 168.0 $ 14.4 Short Duration Contracts: Global Lifestyle — 17,101.9 125.1 386.7 — 15,817.9 133.7 393.9 Global Housing — 1,516.0 256.6 508.1 — 1,467.4 180.0 471.9 Disposed and runoff businesses (1) — 3.6 117.5 114.2 — 3.8 128.7 119.7 Total $ 413.2 $ 18,623.7 $ 579.2 $ 1,016.7 $ 1,358.5 $ 17,293.1 $ 610.4 $ 999.9 |
Dispositions and Exit Activit_2
Dispositions and Exit Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table presents the major classes of assets and liabilities as of August 2, 2021, the date of the sale, and the major classes of assets and liabilities held for sale included in the consolidated balance sheet as of December 31, 2020. August 2, 2021 December 31, 2020 Assets Investments: Fixed maturity securities available for sale, at fair value $ 6,761.0 $ 6,633.5 Equity securities at fair value 112.6 113.9 Commercial mortgage loans on real estate, at amortized cost 599.0 616.0 Short-term investments 58.7 41.2 Other investments 14.8 52.0 Total investments 7,546.1 7,456.6 Cash and cash equivalents 27.3 21.0 Premiums and accounts receivable 4.2 7.5 Reinsurance recoverables 3,235.4 3,234.5 Accrued investment income 66.8 62.7 Deferred acquisition costs (1) 334.0 185.5 Property and equipment, net 49.3 47.2 Value of business acquired 3.9 4.3 Other assets 20.8 22.6 Assets held in separate accounts 2,322.1 2,176.8 Total assets held for sale $ 13,609.9 $ 13,218.7 Liabilities Future policy benefits and expenses $ 8,921.8 $ 8,703.5 Unearned premiums (1) 36.6 14.9 Claims and benefits payable 1,024.2 1,049.2 Commissions payable 10.6 9.4 Reinsurance balances payable 4.1 3.1 Accounts payable and other liabilities 127.2 154.4 Liabilities related to separate accounts 2,322.1 2,176.8 Total liabilities held for sale $ 12,446.6 $ 12,111.3 (1) Deferred acquisition costs and unearned premiums include the impact of changes in unrealized gains (losses) on the amortization. The following table summarizes the components of net income (loss) from discontinued operations included in the consolidated statements of operations: Years Ended December 31, 2021 2020 2019 Revenues Net earned premiums $ 42.6 $ 66.9 $ 61.2 Fees and other income 91.0 151.1 155.4 Net investment income 168.4 289.3 291.8 Net realized gains (losses) on investments and fair value changes to equity securities 4.2 (8.0) 9.3 Gain on disposal of businesses (1) 916.2 — — Total revenues 1,222.4 499.3 517.7 Benefits, losses and expenses Policyholder benefits 172.7 284.4 269.0 Amortization of deferred acquisition costs and value of business acquired 46.2 80.5 84.9 Underwriting, general and administrative expenses 39.0 62.1 64.0 Goodwill impairment (2) — 137.8 — Total benefits, losses and expenses 257.9 564.8 417.9 Income (loss) from discontinued operations before income taxes 964.5 (65.5) 99.8 Provision for income taxes (3) 205.6 12.2 19.4 Net income (loss) from discontinued operations $ 758.9 $ (77.7) $ 80.4 (1) Includes $774.2 million of pre-tax AOCI, primarily net unrealized gains on investments, that was recognized in earnings upon sale. (2) During the third quarter of 2020, the Company identified impairment indicators impacting the fair value of the Global Preneed reportable segment in connection with exploring strategic alternatives for the Global Preneed business. Such impairment indicators, including the evaluation of the long-term economic performance of the segment in light of further expected declines in interest rates, triggered the requirement for an interim goodwill impairment analysis in the third quarter of 2020. The fair value, which was determined using a discounted cash flow method, was lower than the carrying value, resulting in the impairment charge of the entire goodwill of $137.8 million. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses, Period Increase (Decrease) | The following table presents the net increases (decreases) to the allowance for credit losses as classified in the consolidated statements of operations for the periods indicated: For the Years Ended December 31, 2021 2020 Commercial mortgage loans on real estate $ (0.5) $ 1.2 Fixed maturity securities available for sale (1) (1.2) 1.2 Iké Loan (2) (1.4) 1.4 Net realized gains (losses) on investments and fair value changes to equity securities (3.1) 3.8 Underwriting, general and administrative expenses (0.4) 3.6 Net (decrease) increase in allowance for credit losses $ (3.5) $ 7.4 (1) These securities were sold during the year ended December 31, 2021. Refer to Note 8 for additional information. |
Reinsurance Recoverable, Allowance for Credit Loss | The following table presents the changes in the allowance for credit losses by portfolio segment for reinsurance recoverables for the periods indicated: Global Lifestyle Global Housing Corporate Total Balance, December 31, 2019 $ 2.5 $ 0.3 $ — $ 2.8 Cumulative effect of adoption 3.9 0.7 16.1 20.7 Current period change for credit losses — 0.1 3.2 3.3 Recoveries (2.5) — — (2.5) Other — 0.3 — 0.3 Balance, December 31, 2020 3.9 1.4 19.3 24.6 Current period change for credit losses (0.3) (0.2) (1.0) (1.5) Other — (0.3) (17.8) (18.1) Balance, December 31, 2021 $ 3.6 $ 0.9 $ 0.5 $ 5.0 |
Premium and Account Receivables, Allowance for Credit Loss | The following table presents the changes in the allowance for credit losses by portfolio segment for premium and accounts receivables for the periods indicated: Global Lifestyle Global Housing Corporate Total Balance, December 31, 2019 $ 14.2 $ 0.2 $ 0.4 $ 14.8 Cumulative effect of adoption 1.3 0.5 — 1.8 Current period change for credit losses 0.9 2.9 0.2 4.0 Recoveries (1.4) — — (1.4) Write-offs (5.6) — — (5.6) Foreign currency translation (0.3) — — (0.3) Balance, December 31, 2020 9.1 3.6 0.6 13.3 Current period change for credit losses (0.6) (0.1) — (0.7) Recoveries (0.1) — (0.6) (0.7) Write-offs (1.1) (1.1) — (2.2) Foreign currency translation (0.3) — — (0.3) Balance, December 31, 2021 $ 7.0 $ 2.4 $ — $ 9.4 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | The following tables summarize selected financial information by segment for the periods indicated: Year Ended December 31, 2021 Global Lifestyle Global Housing Corporate Consolidated Revenues Net earned premiums $ 6,720.3 $ 1,851.8 $ — $ 8,572.1 Fees and other income 1,027.4 144.8 0.7 1,172.9 Net investment income 201.3 81.0 32.1 314.4 Net realized gains on investments and fair value changes to equity securities — — 128.2 128.2 Total revenues 7,949.0 2,077.6 161.0 10,187.6 Benefits, losses and expenses Policyholder benefits 1,333.1 862.6 — 2,195.7 Amortization of deferred acquisition costs and value of business acquired 3,602.2 233.6 — 3,835.8 Underwriting, general and administrative expenses 2,398.5 671.4 170.7 3,240.6 Interest expense — — 111.8 111.8 Loss on extinguishment of debt — — 20.7 20.7 Total benefits, losses and expenses 7,333.8 1,767.6 303.2 9,404.6 Segment income (loss) before provision (benefit) for income taxes 615.2 310.0 (142.2) 783.0 Provision (benefit) for income taxes 130.5 65.4 (26.4) 169.5 Segment net income (loss) from continuing operations $ 484.7 $ 244.6 $ (115.8) 613.5 Net income from discontinued operations 758.9 Net income 1,372.4 Less: Net income attributable to non-controlling interest — Net income attributable to stockholders 1,372.4 Less: Preferred stock dividends (4.7) Net income attributable to common stockholders $ 1,367.7 Segment assets (1) $ 26,210.0 $ 4,131.2 $ 3,570.3 $ 33,911.5 Year Ended December 31, 2020 Global Lifestyle Global Housing Corporate Consolidated Revenues Net earned premiums $ 6,442.2 $ 1,833.6 $ — $ 8,275.8 Fees and other income 895.4 143.7 3.2 1,042.3 Net investment income 194.3 72.8 18.5 285.6 Net realized losses on investments and fair value changes to equity securities — — (8.2) (8.2) Total revenues 7,531.9 2,050.1 13.5 9,595.5 Benefits, losses and expenses Policyholder benefits 1,412.6 852.1 0.2 2,264.9 Amortization of deferred acquisition costs and value of business acquired 3,365.9 225.6 — 3,591.5 Underwriting, general and administrative expenses 2,189.1 677.3 181.5 3,047.9 Iké net losses — — 5.9 5.9 Interest expense — — 104.5 104.5 Total benefits, losses and expenses 6,967.6 1,755.0 292.1 9,014.7 Segment income (loss) before provision (benefit) for income taxes 564.3 295.1 (278.6) 580.8 Provision (benefit) for income taxes 127.1 61.3 (128.0) 60.4 Segment net income (loss) from continuing operations $ 437.2 $ 233.8 $ (150.6) 520.4 Net loss from discontinued operations (77.7) Net income 442.7 Less: Net income attributable to non-controlling interest (0.9) Net income attributable to stockholders 441.8 Less: Preferred stock dividends (18.7) Net income attributable to common stockholders $ 423.1 Segment assets (1) $ 24,360.8 $ 4,014.3 $ 16,274.8 $ 44,649.9 Year Ended December 31, 2019 Global Lifestyle Global Housing Corporate Consolidated Revenues Net earned premiums $ 6,073.7 $ 1,885.1 $ — $ 7,958.8 Fees and other income 1,020.5 148.6 1.0 1,170.1 Net investment income 250.8 95.2 37.2 383.2 Net realized gains on investments and fair value changes to equity securities — — 57.0 57.0 Total revenues 7,345.0 2,128.9 95.2 9,569.1 Benefits, losses and expenses Policyholder benefits 1,516.2 869.5 — 2,385.7 Amortization of deferred acquisition costs and value of business acquired 3,015.7 221.5 — 3,237.2 Underwriting, general and administrative expenses 2,277.6 711.6 197.3 3,186.5 Iké net losses — — 163.0 163.0 Interest expense — — 110.6 110.6 Loss on extinguishment of debt — — 31.4 31.4 Total benefits, losses and expenses 6,809.5 1,802.6 502.3 9,114.4 Segment income (loss) before provision (benefit) for income taxes 535.5 326.3 (407.1) 454.7 Provision (benefit) for income taxes 126.2 67.6 (45.5) 148.3 Segment net income (loss) from continuing operations $ 409.3 $ 258.7 $ (361.6) 306.4 Net income from discontinued operations 80.4 Net income 386.8 Less: Net income attributable to non-controlling interest (4.2) Net income attributable to stockholders 382.6 Less: Preferred stock dividends (18.7) Net income attributable to common stockholders $ 363.9 (1) Segment assets for Global Lifestyle and Global Housing do not include net unrealized gains on securities attributable to those segments, which are all included within Corporate and Other. |
Summary of Financial Information by Geographic Location | The following table summarizes selected financial information by geographic location for the years ended or as of December 31, 2021, 2020 and 2019: Location Revenues Long-lived 2021 United States $ 8,323.2 $ 530.6 Foreign countries 1,864.4 30.8 Total $ 10,187.6 $ 561.4 2020 United States $ 7,633.2 $ 422.9 Foreign countries 1,962.3 23.2 Total $ 9,595.5 $ 446.1 2019 United States $ 7,464.7 $ 348.2 Foreign countries 2,104.4 42.5 Total $ 9,569.1 $ 390.7 |
Summary of Net Earned Premiums by Segment and Product | The Company’s net earned premiums, fees and other income by segment and product are as follows for the periods indicated: Years Ended December 31, 2021 2020 2019 Global Lifestyle: Connected Living $ 3,915.8 $ 3,836.6 $ 3,768.4 Global Automotive 3,436.9 3,113.0 2,873.6 Global Financial Services and Other 395.0 388.0 452.2 Total $ 7,747.7 $ 7,337.6 $ 7,094.2 Global Housing: Lender-placed Insurance $ 1,065.9 $ 1,052.5 $ 1,109.2 Multifamily Housing 482.3 451.6 429.2 Specialty and Other 448.4 473.2 495.3 Total $ 1,996.6 $ 1,977.3 $ 2,033.7 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, Fair Value of Fixed Maturity Security | The following tables show the cost or amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value of the Company’s fixed maturity securities as of the dates indicated: December 31, 2021 Cost or Allowance for Credit Losses Gross Gross Fair Value Fixed maturity securities: U.S. government and government agencies and authorities $ 83.0 $ — $ 2.1 $ (0.1) $ 85.0 States, municipalities and political subdivisions 142.2 — 7.0 (0.7) 148.5 Foreign governments 436.0 — 5.9 (4.2) 437.7 Asset-backed 411.1 — 14.2 (2.3) 423.0 Commercial mortgage-backed 466.7 — 10.3 (3.3) 473.7 Residential mortgage-backed 578.4 — 25.2 (1.7) 601.9 U.S. corporate 3,581.2 — 235.9 (14.0) 3,803.1 Foreign corporate 1,205.3 — 46.0 (8.9) 1,242.4 Total fixed maturity securities $ 6,903.9 $ — $ 346.6 $ (35.2) $ 7,215.3 December 31, 2020 Cost or Allowances for Credit Losses Gross Gross Fair Value Fixed maturity securities: U.S. government and government agencies and authorities $ 90.4 $ — $ 3.7 $ — $ 94.1 States, municipalities and political subdivisions 164.4 — 11.0 (0.1) 175.3 Foreign governments 442.4 — 27.4 (0.1) 469.7 Asset-backed 251.9 — 9.4 (0.8) 260.5 Commercial mortgage-backed 266.3 — 16.5 (1.4) 281.4 Residential mortgage-backed 685.8 — 49.0 (0.2) 734.6 U.S. corporate 3,315.6 (1.2) 380.6 (4.4) 3,690.6 Foreign corporate 1,029.0 — 80.6 (0.3) 1,109.3 Total fixed maturity securities $ 6,245.8 $ (1.2) $ 578.2 $ (7.3) $ 6,815.5 |
Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity | The cost or amortized cost and fair value of fixed maturity securities as of December 31, 2021 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. December 31, 2021 Cost or Fair Value Due in one year or less $ 376.9 $ 381.1 Due after one year through five years 2,117.3 2,200.7 Due after five years through ten years 1,892.8 1,988.5 Due after ten years 1,060.7 1,146.4 Total 5,447.7 5,716.7 Asset-backed 411.1 423.0 Commercial mortgage-backed 466.7 473.7 Residential mortgage-backed 578.4 601.9 Total $ 6,903.9 $ 7,215.3 December 31, 2021 Cost or Fair Value Due in one year or less $ 15.3 $ 15.1 Due after one year through five years 443.2 436.6 Due after five years through ten years 602.9 591.3 Due after ten years 369.8 360.3 Total 1,431.2 1,403.3 Asset-backed 269.8 267.5 Commercial mortgage-backed 280.1 276.8 Residential mortgage-backed 105.7 104.0 Total $ 2,086.8 $ 2,051.6 |
Categories of Net Investment Income | The following table shows the major categories of net investment income for the periods indicated: Years Ended December 31, 2021 2020 2019 Fixed maturity securities $ 232.8 $ 228.4 $ 241.2 Equity securities 14.9 14.5 14.9 Commercial mortgage loans on real estate 8.9 8.2 8.3 Short-term investments 2.1 5.7 10.8 Other investments 61.0 16.6 41.4 Cash and cash equivalents 8.5 13.3 37.8 Revenues from consolidated investment entities (1) — 56.3 119.2 Total investment income 328.2 343.0 473.6 Investment expenses (13.8) (20.5) (20.3) Expenses from consolidated investment entities (1) — (36.9) (70.1) Net investment income $ 314.4 $ 285.6 $ 383.2 (1) The following table shows the revenues net of expenses from consolidated investment entities for the periods indicated. Years Ended December 31, 2021 2020 2019 Investment income (loss) from direct investments in: Real estate funds (1) $ — $ 8.3 $ 25.1 CLO entities — 8.0 17.0 Investment management fees — 3.1 7.0 Net investment income from consolidated investment entities $ — $ 19.4 $ 49.1 (1) The investment income from the real estate funds includes income (loss) attributable to non-controlling interest $1.1 million and $3.8 million for the years ended December 31, 2020 and 2019, respectively. |
Gain (Loss) on Securities | The following table summarizes the proceeds from sales of available-for-sale fixed maturity securities and the gross realized gains and gross realized losses that have been recognized in the statement of operations as a result of those sales for the periods indicated: Years Ended December 31, 2021 2020 2019 Fixed maturity securities: Proceeds from sales $ 1,361.8 $ 515.4 $ 1,729.1 Gross realized gains $ 31.9 $ 19.6 $ 24.3 Gross realized losses (14.8) (6.8) (8.2) Net realized gains (losses) on investments from sales of fixed maturity securities $ 17.1 $ 12.8 $ 16.1 The following table sets forth the net realized gains (losses) on investments and fair value changes to equity securities, including impairments, recognized in the statement of operations for the periods indicated: Years Ended December 31, 2021 2020 2019 Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other: Fixed maturity securities $ 17.2 $ 12.7 $ 16.4 Equity securities (1) (2) 108.3 21.6 37.5 Commercial mortgage loans on real estate 0.5 (1.2) — Other investments 2.0 10.7 15.0 Consolidated investment entities (3) — (32.3) (9.8) Total net realized gains (losses) on investments and fair value changes to equity securities related to sales and other 128.0 11.5 59.1 Net realized gains (losses) related to impairments: Fixed maturity securities (4) 1.2 (2.6) (0.6) Other investments (1) (1.0) (17.1) (1.5) Total net realized gains (losses) related to impairments 0.2 (19.7) (2.1) Total net realized gains (losses) on investments and fair value changes to equity securities $ 128.2 $ (8.2) $ 57.0 (1) Gross gains of $24.3 million, $10.5 million and $13.4 million were realized on equity investments accounted for under the measurement alternative for the years ended December 31, 2021, 2020 and 2019, respectively. The carrying value of equity investments accounted for under the measurement alternative was $103.7 million and $98.7 million as of December 31, 2021 and 2020, respectively. These investments are included within other investments on the consolidated balance sheets. For the years ended December 31, 2021, 2020 and 2019, there were impairments of $1.0 million, $17.1 million, and $1.5 million, respectively. For the years ended December 31, 2021, 2020 and 2019, the cumulative carrying value fair value increases were $43.0 million, $35.1 million and $24.6 million, respectively, the cumulative downward adjustments were $0.8 million, $0.0 million and $0.0 million, and the cumulative impairment losses were $14.9 million, $18.6 million and $1.5 million, respectively. (2) The year ended December 31, 2021 included $85.4 million of unrealized gains from four equity positions that went public during 2021. The total fair value of these equity securities as of December 31, 2021 was $133.7 million, included in equity securities in the consolidated balance sheet. Prior to going public, these equity positions were accounted for under the equity measurement alternative guidance and reported within other investments in the consolidated balance sheet and the fair value was $48.1 million as of December 31, 2020. (3) Consists of net realized losses from the change in fair value of the Company’s direct investment in CLOs prior to sale of the CLO asset management platform in 2020. |
Fair Value Changes to Equity Securities | The following table sets forth the portion of fair value changes to equity securities held for the periods indicated: Years Ended December 31, 2021 2020 2019 Net gains (losses) recognized on equity securities $ 108.3 $ 21.6 $ 37.4 Less: Net realized gains (losses) related to sales of equity securities (4.1) 6.6 (1.1) Total fair value changes to equity securities held $ 112.4 $ 15.0 $ 38.5 |
Duration of Gross Unrealized Losses on Fixed Maturity Securities and Equity Securities | The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities, as of December 31, 2021 and 2020 were as follows: December 31, 2021 Less than 12 months 12 Months or More Total Fair Value Unrealized Fair Unrealized Fair Value Unrealized Fixed maturity securities: U.S. government and government agencies and authorities $ 31.5 $ (0.1) $ — $ — $ 31.5 $ (0.1) States, municipalities and political subdivisions 48.1 (0.7) — — 48.1 (0.7) Foreign governments 216.0 (4.1) 4.0 (0.1) 220.0 (4.2) Asset-backed 257.7 (2.1) 9.8 (0.2) 267.5 (2.3) Commercial mortgage-backed 274.8 (2.9) 2.0 (0.4) 276.8 (3.3) Residential mortgage-backed 94.0 (1.5) 10.0 (0.2) 104.0 (1.7) U.S. corporate 687.8 (13.1) 15.2 (0.9) 703.0 (14.0) Foreign corporate 394.0 (8.6) 6.7 (0.3) 400.7 (8.9) Total fixed maturity securities $ 2,003.9 $ (33.1) $ 47.7 $ (2.1) $ 2,051.6 $ (35.2) December 31, 2020 Less than 12 months 12 Months or More Total Fair Value Unrealized Fair Unrealized Fair Value Unrealized Fixed maturity securities: States, municipalities and political subdivisions $ 6.1 $ (0.1) $ — $ — $ 6.1 $ (0.1) Foreign governments 28.3 (0.1) — — 28.3 (0.1) Asset-backed 54.5 (0.2) 37.4 (0.6) 91.9 (0.8) Commercial mortgage-backed 28.2 (0.7) 3.3 (0.7) 31.5 (1.4) Residential mortgage-backed 23.9 (0.1) 1.5 (0.1) 25.4 (0.2) U.S. corporate 71.9 (2.9) 13.8 (1.5) 85.7 (4.4) Foreign corporate 30.1 (0.3) — — 30.1 (0.3) Total fixed maturity securities $ 243.0 $ (4.4) $ 56.0 $ (2.9) $ 299.0 $ (7.3) |
Credit Quality Indicators for Commercial Mortgage Loans | The following table presents the amortized cost basis of commercial mortgage loans, excluding allowance for credit losses, by origination year for certain key credit quality indicators at December 31, 2021 and 2020, respectively. December 31, 2021 Origination Year 2021 2020 2019 2018 2017 Prior Total % of Total Loan to value ratios (1): 70% and less $ 71.7 $ 5.6 $ — $ — $ 4.0 $ 99.8 $ 181.1 70.3 % 71% to 80% 61.8 — — 4.7 — 1.0 67.5 26.2 % 81% to 95% — — — — — 1.1 1.1 0.4 % Greater than 95% — — — — 5.8 2.1 7.9 3.1 % Total $ 133.5 $ 5.6 $ — $ 4.7 $ 9.8 $ 104.0 $ 257.6 100.0 % December 31, 2021 Origination Year 2021 2020 2019 2018 2017 Prior Total % of Total Debt service coverage ratios (2): Greater than 2.0 $ 59.3 $ 5.6 $ — $ — $ — $ 70.5 $ 135.4 52.6 % 1.5 to 2.0 34.1 — — 4.7 4.0 17.5 60.3 23.4 % 1.0 to 1.5 40.1 — — — — 9.9 50.0 19.4 % Less than 1.0 — — — — 5.8 6.1 11.9 4.6 % Total $ 133.5 $ 5.6 $ — $ 4.7 $ 9.8 $ 104.0 $ 257.6 100.0 % (1) LTV ratio derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated at least annually. (2) DSC ratio calculated using most recent reported operating income results from property operators divided by annual debt service coverage. December 31, 2020 Origination Year 2020 2019 2018 2017 2016 Prior Total % of Total Loan to value ratios (1): 70% and less $ 2.9 $ — $ — $ 4.1 $ 29.0 $ 87.1 $ 123.1 88.0 % 71% to 80% 2.6 — 4.8 — — — 7.4 5.3 % 81% to 95% — — — — — 2.2 2.2 1.6 % Greater than 95% — — — 6.0 — 1.2 7.2 5.1 % Total $ 5.5 $ — $ 4.8 $ 10.1 $ 29.0 $ 90.5 $ 139.9 100.0 % December 31, 2020 Origination Year 2020 2019 2018 2017 2016 Prior Total % of Total Debt service coverage ratios (2): Greater than 2.0 $ 5.5 $ — $ — $ 4.1 $ 26.4 $ 53.3 $ 89.3 63.9 % 1.5 to 2.0 — — 4.8 — 2.6 17.5 24.9 17.8 % 1.0 to 1.5 — — — — — 15.0 15.0 10.7 % Less than 1.0 — — — 6.0 — 4.7 10.7 7.6 % Total $ 5.5 $ — $ 4.8 $ 10.1 $ 29.0 $ 90.5 $ 139.9 100.0 % (1) LTV ratio derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated at least annually. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value for Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020. The amounts presented below for short-term investments, other investments, cash equivalents, other assets, assets held in and liabilities related to separate accounts and other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the AIP, the ASIC, and the ADC, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the AIP, contingent considerations related to business combinations and other derivatives. 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. December 31, 2021 Financial Assets Total Level 1 Level 2 Level 3 Fixed maturity securities: U.S. government and government agencies and authorities $ 85.0 $ — $ 85.0 $ — States, municipalities and political subdivisions 148.5 — 148.5 — Foreign governments 437.7 — 437.7 — Asset-backed 423.0 — 423.0 — Commercial mortgage-backed 473.7 — 473.7 — Residential mortgage-backed 601.9 — 601.9 — U.S. corporate 3,803.1 — 3,799.7 3.4 Foreign corporate 1,242.4 — 1,238.8 3.6 Equity securities: Mutual funds 33.3 33.3 — — Common stocks 151.1 15.5 0.7 134.9 (6) Non-redeemable preferred stocks 261.3 — 261.3 — Short-term investments 207.2 200.1 (2) 7.1 — Other investments 72.6 72.4 (1) — 0.2 Cash equivalents 1,243.9 1,190.9 (2) 53.0 (3) — Other assets 1.7 — 1.7 (4) — Assets held in separate accounts 11.8 7.7 (1) 4.1 (3) — Total financial assets $ 9,198.2 $ 1,519.9 $ 7,536.2 $ 142.1 Financial Liabilities Other liabilities $ 76.4 $ 72.4 (1) $ — $ 4.0 (5) Liabilities related to separate accounts 11.8 7.7 (1) 4.1 (3) — Total financial liabilities $ 88.2 $ 80.1 $ 4.1 $ 4.0 December 31, 2020 Financial Assets Total Level 1 Level 2 Level 3 Fixed maturity securities: U.S. government and government agencies and authorities $ 94.1 $ — $ 94.1 $ — States, municipalities and political subdivisions 175.3 — 175.3 — Foreign governments 469.7 0.5 468.8 0.4 Asset-backed 260.5 — 260.5 — Commercial mortgage-backed 281.4 — 272.7 8.7 Residential mortgage-backed 734.6 — 734.6 — U.S. corporate 3,690.6 — 3,678.6 12.0 Foreign corporate 1,109.3 — 1,105.4 3.9 Equity securities: Mutual funds 42.3 42.3 — — Common stocks 15.2 13.3 0.7 1.2 Non-redeemable preferred stocks 232.7 — 231.6 1.1 Short-term investments 253.5 202.0 (2) 51.5 — Other investments 241.3 72.9 (1) 168.3 (3) 0.1 Cash equivalents 1,558.6 1,536.6 (2) 22.0 (3) — Assets held in separate accounts 11.4 6.7 (1) 4.7 (3) — Total financial assets $ 9,170.5 $ 1,874.3 $ 7,268.8 $ 27.4 Financial Liabilities Other liabilities $ 76.1 $ 72.9 (1) $ 0.5 (4) $ 2.7 (5) Liabilities related to separate accounts 11.4 6.7 (1) 4.7 (3) — Total financial liabilities $ 87.5 $ 79.6 $ 5.2 $ 2.7 (1) Primarily includes mutual funds and related obligations. (2) Primarily includes money market funds. (3) Primarily includes fixed maturity securities and related obligations. (4) Primarily includes derivatives. (5) Includes contingent consideration liabilities and other derivatives. (6) During 2021, the Company received $133.7 million of common stock through special purpose acquisition company mergers. See Note 8 for additional information. These equity securities are subject to lock up agreements and therefore an illiquidity discount was applied to the exchange traded price, which includes significant unobservable inputs. |
Change in Balance Sheet Carrying Value Associated With Level 3 Financial Assets Carried at Fair Value | The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets and liabilities carried at fair value for the years ended December 31, 2021 and 2020: Year Ended December 31, 2021 Balance, Total Net Purchases Sales Transfers Transfers Balance, Financial Assets Fixed Maturity Securities Foreign governments $ 0.4 $ — $ — $ — $ — $ — $ (0.4) $ — Asset-backed — — — 1.5 — — (1.5) — Commercial mortgage-backed 8.7 (1.9) 0.3 — — — (7.1) — U.S. corporate 12.0 0.2 (0.5) 0.6 (1.2) 3.4 (11.1) 3.4 Foreign corporate 3.9 — (0.1) — (0.2) 1.1 (1.1) 3.6 Equity Securities Common stock (4) 1.2 85.6 — — — 48.1 — 134.9 Non-redeemable preferred stocks 1.1 — — 1.1 (2.2) — — — Other investments 0.1 0.1 — — — — — 0.2 Financial Liabilities Other liabilities (2.7) (1.3) — — — — — (4.0) Total level 3 assets and liabilities $ 24.7 $ 82.7 $ (0.3) $ 3.2 $ (3.6) $ 52.6 $ (21.2) $ 138.1 Year Ended December 31, 2020 Balance, Total Net Purchases Sales Transfers Transfers Balance, Financial Assets Fixed Maturity Securities Foreign governments $ — $ — $ — $ — $ — $ 0.4 $ — $ 0.4 Commercial mortgage-backed 11.6 (2.8) (0.1) — — — — 8.7 Residential mortgage-backed — — 0.1 13.8 (1.1) 1.1 (13.9) — U.S. corporate 1.7 0.2 0.6 13.3 (0.4) 1.8 (5.2) 12.0 Foreign corporate 8.2 0.1 (0.5) 0.1 (0.4) — (3.6) 3.9 Equity Securities Common stock — — — — — 1.2 — 1.2 Non-redeemable preferred stocks 1.1 (4.0) — — — 4.0 — 1.1 Other investments — — (1.1) — — 2.7 (1.5) 0.1 Other assets — 20.7 — 1.7 (22.0) (0.2) (0.2) — Financial Liabilities Other liabilities (0.2) (0.4) — (2.5) — 0.2 0.2 (2.7) Total level 3 assets and liabilities $ 22.4 $ 13.8 $ (1.0) $ 26.4 $ (23.9) $ 11.2 $ (24.2) $ 24.7 (1) Included as part of net realized gains on investments, excluding other-than-temporary impairment losses, in the consolidated statements of operations. (2) Included as part of change in unrealized gains on securities in the consolidated statement of comprehensive income. (3) Transfers are primarily attributable to changes in the availability of observable market information and the re-evaluation of the observability of valuation inputs. (4) $48.1 million of transfers in represents the cost basis of common stock received through special purpose acquisition company mergers. |
Change in Balance Sheet Carrying Value Associated With Level 3 Financial Liabilities Carried at Fair Value | The following tables summarize the change in balance sheet carrying value associated with Level 3 financial assets and liabilities carried at fair value for the years ended December 31, 2021 and 2020: Year Ended December 31, 2021 Balance, Total Net Purchases Sales Transfers Transfers Balance, Financial Assets Fixed Maturity Securities Foreign governments $ 0.4 $ — $ — $ — $ — $ — $ (0.4) $ — Asset-backed — — — 1.5 — — (1.5) — Commercial mortgage-backed 8.7 (1.9) 0.3 — — — (7.1) — U.S. corporate 12.0 0.2 (0.5) 0.6 (1.2) 3.4 (11.1) 3.4 Foreign corporate 3.9 — (0.1) — (0.2) 1.1 (1.1) 3.6 Equity Securities Common stock (4) 1.2 85.6 — — — 48.1 — 134.9 Non-redeemable preferred stocks 1.1 — — 1.1 (2.2) — — — Other investments 0.1 0.1 — — — — — 0.2 Financial Liabilities Other liabilities (2.7) (1.3) — — — — — (4.0) Total level 3 assets and liabilities $ 24.7 $ 82.7 $ (0.3) $ 3.2 $ (3.6) $ 52.6 $ (21.2) $ 138.1 Year Ended December 31, 2020 Balance, Total Net Purchases Sales Transfers Transfers Balance, Financial Assets Fixed Maturity Securities Foreign governments $ — $ — $ — $ — $ — $ 0.4 $ — $ 0.4 Commercial mortgage-backed 11.6 (2.8) (0.1) — — — — 8.7 Residential mortgage-backed — — 0.1 13.8 (1.1) 1.1 (13.9) — U.S. corporate 1.7 0.2 0.6 13.3 (0.4) 1.8 (5.2) 12.0 Foreign corporate 8.2 0.1 (0.5) 0.1 (0.4) — (3.6) 3.9 Equity Securities Common stock — — — — — 1.2 — 1.2 Non-redeemable preferred stocks 1.1 (4.0) — — — 4.0 — 1.1 Other investments — — (1.1) — — 2.7 (1.5) 0.1 Other assets — 20.7 — 1.7 (22.0) (0.2) (0.2) — Financial Liabilities Other liabilities (0.2) (0.4) — (2.5) — 0.2 0.2 (2.7) Total level 3 assets and liabilities $ 22.4 $ 13.8 $ (1.0) $ 26.4 $ (23.9) $ 11.2 $ (24.2) $ 24.7 (1) Included as part of net realized gains on investments, excluding other-than-temporary impairment losses, in the consolidated statements of operations. (2) Included as part of change in unrealized gains on securities in the consolidated statement of comprehensive income. (3) Transfers are primarily attributable to changes in the availability of observable market information and the re-evaluation of the observability of valuation inputs. (4) $48.1 million of transfers in represents the cost basis of common stock received through special purpose acquisition company mergers. |
Carrying Value and Fair Value of the Financial Instruments That are Not Recognized or are Not Carried at Fair Value | The following tables disclose the carrying value, fair value and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of the dates indicated: December 31, 2021 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 256.5 $ 266.0 $ — $ — $ 266.0 Other investments 4.2 4.2 2.0 — 2.2 Other assets 24.9 24.9 — — 24.9 Total financial assets $ 285.6 $ 295.1 $ 2.0 $ — $ 293.1 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 8.5 $ 9.6 $ — $ — $ 9.6 Funds held under reinsurance 364.2 364.2 364.2 — — Debt 2,202.5 2,456.3 — 2,456.3 — Total financial liabilities $ 2,575.2 $ 2,830.1 $ 364.2 $ 2,456.3 $ 9.6 December 31, 2020 Fair Value Carrying Value Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 138.3 $ 152.3 $ — $ — $ 152.3 Other investments 52.1 52.1 14.4 — 37.7 Other assets 23.3 23.3 — — 23.3 Total financial assets $ 213.7 $ 227.7 $ 14.4 $ — $ 213.3 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 70.6 $ 85.4 $ — $ — $ 85.4 Funds held under reinsurance 358.6 358.6 358.6 — — Debt 2,252.9 2,540.0 — 2,540.0 — Total financial liabilities $ 2,682.1 $ 2,984.0 $ 358.6 $ 2,540.0 $ 85.4 (1) Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the tables above. |
Premiums and Accounts Receiva_2
Premiums and Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Premiums Receivable Disclosure [Abstract] | |
Schedule of Allowance for Uncollectible Amounts | Receivables are reported net of an allowance for uncollectible amounts. A summary of such receivables is as follows as of the dates indicated: December 31, 2021 2020 Insurance premiums receivable $ 1,878.0 $ 1,484.2 Other receivables 73.9 78.0 Allowance for credit losses (9.4) (13.3) Total $ 1,942.5 $ 1,548.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Information About Domestic and Foreign Pre-Tax Income | The components of income tax expense (benefit) were as follows for the periods indicated: Years Ended December 31, 2021 2020 2019 Pre-tax income: Domestic $ 629.7 $ 443.1 $ 414.7 Foreign 153.3 137.7 40.0 Total pre-tax income $ 783.0 $ 580.8 $ 454.7 |
Components of Income Tax Expense (Benefit) | Years Ended December 31, 2021 2020 2019 Current expense (benefit): Federal and state $ 1.7 $ (180.8) $ (7.8) Foreign 36.1 38.8 55.3 Total current expense (benefit) 37.8 (142.0) 47.5 Deferred expense (benefit): Federal and state 123.4 192.0 98.0 Foreign 8.3 10.4 2.8 Total deferred expense (benefit) 131.7 202.4 100.8 Total income tax expense (benefit) $ 169.5 $ 60.4 $ 148.3 |
Reconciliation of Federal Income Tax Rate | A reconciliation of the federal income tax rate to the Company’s effective income tax rate follows for the periods indicated: Years Ended December 31, 2021 2020 2019 Federal income tax rate: 21.0 % 21.0 % 21.0 % Reconciling items: Non-taxable investment income (0.2) (0.2) (0.5) Foreign earnings (1) 1.0 1.4 1.0 Non-deductible compensation 0.7 0.7 0.8 Change in liability for prior year tax (0.4) (0.5) 0.1 Change in valuation allowance (2) (0.2) 1.2 10.7 Net operating loss carryback - CARES Act (3) — (13.7) — Other (0.3) 0.5 (0.5) Effective income tax rate: 21.6 % 10.4 % 32.6 % (1) Results for 2021, 2020, and 2019 primarily include the impact of foreign earnings taxed at different rates. (2) The change in valuation allowance in 2019 is primarily related to the valuation allowance of $49.7 million established on the deferred taxes that arose related to losses incurred on our investment in Iké. The change in valuation allowance in 2020 is primarily related to an additional valuation allowance of $6.7 million related to Iké. (3) The CARES Act includes a five year net operating loss (“NOL”) carryback provision, which enabled the Company to benefit from certain losses and remeasure certain deferred tax assets and liabilities at the former federal tax rate of 35%. In 2020, the Company recorded a tax benefit related to the NOL carryback provision. |
Summary of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2021, 2020 and 2019 is as follows: Years Ended December 31, 2021 2020 2019 Balance at beginning of year $ (15.6) $ (12.5) $ (11.8) Additions based on tax positions related to the current year (0.6) (0.5) (0.5) Reductions based on tax positions related to the current year — — — Additions for tax positions of prior years (5.9) (2.7) (0.4) Reductions for tax positions of prior years 3.6 0.1 0.2 Lapses — — — Balance at end of year $ (18.5) $ (15.6) $ (12.5) |
Summary of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that result in significant deferred tax assets and deferred tax liabilities are as follows as of the dates indicated: December 31, 2021 2020 Deferred Tax Assets Policyholder and separate account reserves $ 642.2 $ 720.6 Net operating loss carryforwards 78.8 53.8 Investments, net 9.4 7.3 Credit carryforwards 26.3 32.8 Employee and post-retirement benefits 17.3 25.5 Compensation related 37.5 29.8 Capital loss carryforwards 0.3 9.8 Other 47.1 47.6 Total deferred tax assets 858.9 927.2 Less valuation allowance (25.1) (27.6) Deferred tax assets, net of valuation allowance 833.8 899.6 Deferred Tax Liabilities Deferred acquisition costs (1,325.8) (1,266.5) Net unrealized appreciation on securities (90.1) (126.5) Intangible assets (101.1) (106.0) Total deferred tax liabilities (1,517.0) (1,499.0) Net deferred income tax liabilities $ (683.2) $ (599.4) |
Summary of Net Operating Loss Carryforwards | The net operating loss carryforwards by jurisdiction are as follows as of the dates indicated: December 31, 2021 2020 Federal net operating loss carryforwards (1) $ 203.6 $ 66.8 Foreign net operating loss carryforwards (2) $ 142.1 $ 162.4 (1) Of the $203.6 million as of December 31, 2021, $135.1 million of net operating losses expires between 2035 and 2041, and $68.5 million has an unlimited carryforward. (2) Of the $142.1 million as of December 31, 2021, $45.6 million expires between 2022 and 2037, and $96.5 million has an unlimited carryforward. |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule of Deferred Acquisition Costs | Information about deferred acquisition costs is as follows as of the dates indicated: December 31, 2021 2020 2019 Beginning balance $ 7,388.0 $ 6,121.5 $ 4,203.4 Costs deferred 4,691.0 4,022.9 4,022.0 Amortization (3,268.0) (2,756.4) (2,103.9) Ending balance $ 8,811.0 $ 7,388.0 $ 6,121.5 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of Property and Equipment | Property and equipment consisted of the following as of the dates indicated: December 31, 2021 2020 Land $ 10.0 $ 10.0 Buildings and improvements 235.5 240.1 Furniture, fixtures and equipment 129.9 123.9 Software 541.6 406.5 Total 917.0 780.5 Less accumulated depreciation (355.6) (334.4) Total $ 561.4 $ 446.1 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A roll forward of goodwill by reportable segment is provided below as of and for the years indicated: Global Lifestyle (1) Global Housing Consolidated Balance at December 31, 2019 (2) $ 1,825.9 $ 379.5 $ 2,205.4 Acquisitions (3) 374.6 — 374.6 Foreign currency translation and other 9.3 — 9.3 Balance at December 31, 2020 (2) 2,209.8 379.5 2,589.3 Acquisitions (3) (10.4) — (10.4) Foreign currency translation and other (7.3) — (7.3) Balance at December 31, 2021 (2) $ 2,192.1 $ 379.5 $ 2,571.6 (1) As of December 31, 2021, $698.7 million, $1,420.5 million and $72.9 million of goodwill was assigned to the Connected Living, Global Automotive and Global Financial Services and Other reporting unit, respectively. As of December 31, 2020, $715.2 million, $1,421.3 million and $73.3 million of goodwill was assigned to the Connected Living, Global Automotive and Global Financial Services and Other reporting unit, respectively. (2) Consolidated goodwill reflects 1,405.9 million of accumulated impairment losses at December 31, 2021 and 2020, respectively, and $1,268.1 million of accumulated impairment losses at December 31, 2019. |
VOBA and Other Intangible Ass_2
VOBA and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Information About VOBA and Other Intangible Assets | Information about VOBA is as follows for the periods indicated: Years Ended December 31, 2021 2020 2019 Beginning balance $ 1,152.2 $ 1,993.7 $ 3,140.8 Additions (adjustments) — — (4.0) Amortization, net of interest accrued (567.9) (835.7) (1,121.0) Foreign currency translation and other (0.9) (5.8) (22.1) Ending balance $ 583.4 $ 1,152.2 $ 1,993.7 |
Present Value of Future Insurance Profits, Expected Amortization | As of December 31, 2021, the estimated amortization of VOBA for the next five years and thereafter is as follows: Year Amount 2022 $ 322.5 2023 177.8 2024 76.2 2025 3.3 2026 1.4 Thereafter 2.2 Total $ 583.4 |
Schedule of Finite-Lived Intangible Assets | Information about other intangible assets is as follows as of the dates indicated: As of December 31, 2021 2020 Carrying Accumulated Net Other Carrying Accumulated Net Other Customer related $ 617.4 $ (329.7) $ 287.7 $ 519.5 $ (306.2) $ 213.3 Contract based (1) 420.3 (76.5) 343.8 432.0 (51.0) 381.0 Technology based 121.7 (39.5) 82.2 117.6 (22.3) 95.3 Marketing related 10.3 (4.8) 5.5 10.1 (3.5) 6.6 Total $ 1,169.7 $ (450.5) $ 719.2 $ 1,079.2 $ (383.0) $ 696.2 (1) As of December 31, 2021 and 2020, contract based intangibles included $12.1 million of indefinite-lived intangible assets. |
Schedule of Indefinite-Lived Intangible Assets | Information about other intangible assets is as follows as of the dates indicated: As of December 31, 2021 2020 Carrying Accumulated Net Other Carrying Accumulated Net Other Customer related $ 617.4 $ (329.7) $ 287.7 $ 519.5 $ (306.2) $ 213.3 Contract based (1) 420.3 (76.5) 343.8 432.0 (51.0) 381.0 Technology based 121.7 (39.5) 82.2 117.6 (22.3) 95.3 Marketing related 10.3 (4.8) 5.5 10.1 (3.5) 6.6 Total $ 1,169.7 $ (450.5) $ 719.2 $ 1,079.2 $ (383.0) $ 696.2 (1) As of December 31, 2021 and 2020, contract based intangibles included $12.1 million of indefinite-lived intangible assets. |
Future Amortization Expenses | The estimated amortization of other intangible assets with finite lives for the next five years and thereafter is as follows: Year Amount 2022 $ 98.1 2023 97.9 2024 93.8 2025 89.6 2026 78.4 Thereafter 249.3 Total other intangible assets with finite lives $ 707.1 |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
Roll Forward of Claims and Benefits Payable | 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 are comprised of case and 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 expenses 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. Years Ended December 31, 2021 2020 2019 Claims and benefits payable, at beginning of year $ 1,610.3 $ 1,613.1 $ 1,606.3 Less: Reinsurance ceded and other (849.4) (855.1) (874.2) Net claims and benefits payable, at beginning of year 760.9 758.0 732.1 Incurred losses and loss adjustment expenses related to: Current year 2,202.2 2,305.4 2,401.6 Prior years (6.5) (40.5) (15.9) Total incurred losses and loss adjustment expenses 2,195.7 2,264.9 2,385.7 Paid losses and loss adjustment expenses related to: Current year 1,679.2 1,770.6 1,857.3 Prior years 505.1 491.4 502.5 Total paid losses and loss adjustment expenses 2,184.3 2,262.0 2,359.8 Transfer to liabilities held for sale (Note 4) (2.0) — — Net claims and benefits payable, at end of year 770.3 760.9 758.0 Plus: Reinsurance ceded and other (1) 825.6 849.4 855.1 Claims and benefits payable, at end of year (1) $ 1,595.9 $ 1,610.3 $ 1,613.1 (1) Includes reinsurance recoverables and claims and benefits payable of $143.8 million, $95.8 million and $86.8 million as of December 31, 2021, 2020 and 2019, respectively, which were ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program. A comparison of net (favorable) unfavorable prior year development is shown below across the Company’s current and former segments and businesses. Prior Year Incurred Loss Development for the Years Ending December 31, 2021 2020 2019 Global Lifestyle $ (35.2) $ (27.6) $ (24.0) Global Housing 36.5 (8.0) 13.6 All Other (7.8) (4.9) (5.5) Total $ (6.5) $ (40.5) $ (15.9) |
Reconciliation of Net Incurred and Paid Claims Development to Liability for Claims and Benefits Payable | Reconciliation of the Disclosure of Net Incurred and Paid Claims Development to the Liability for Unpaid Claims and Benefits Payable December 31, 2021 Net outstanding liabilities Global Lifestyle $ 273.0 Global Housing 472.3 Other short-duration insurance lines (1) 15.2 Disposed business short-duration insurance lines (Assurant Health) 0.7 Claims and benefits payable, net of reinsurance 761.2 Reinsurance recoverable on unpaid claims Global Lifestyle (2) 428.0 Global Housing 289.2 Other short-duration insurance lines (1) 2.5 Disposed business short-duration insurance lines (Assurant Employee Benefits and Assurant Health) 18.1 Total reinsurance recoverable on unpaid claims 737.8 Insurance lines other than short-duration (3) 87.7 Unallocated claim adjustment expense 9.2 Total claims and benefits payable $ 1,595.9 (1) Asbestos and pollution reserves represents $17.9 million of the other short-duration insurance lines, with $2.5 million recoveries. (2) Disposed of property and casualty business represents $190.6 million of the $428.0 million in reinsurance recoverables for Global Lifestyle. |
Global Lifestyle | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
Schedule of Claims Development | Global Lifestyle Net Claims Development Tables Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2021 Years Ended December 31, Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Claims (2) Accident Year 2017 Unaudited 2018 Unaudited 2019 Unaudited 2020 Unaudited 2021 2017 $ 1,201.9 $ 1,178.6 $ 1,178.3 $ 1,178.4 $ 1,178.4 $ 0.2 10,230,625 2018 1,374.5 1,350.2 1,343.8 1,343.4 1.9 9,722,793 2019 1,522.2 1,502.2 1,498.7 6.0 10,119,630 2020 1,455.2 1,424.0 8.6 10,104,237 2021 1,348.8 152.6 9,452,388 Total $ 6,793.3 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2017 Unaudited 2018 Unaudited 2019 Unaudited 2020 Unaudited 2021 2017 $ 980.7 $ 1,163.9 $ 1,170.5 $ 1,172.7 $ 1,174.6 2018 1,149.6 1,324.5 1,334.4 1,337.6 2019 1,297.3 1,481.8 1,488.9 2020 1,229.8 1,407.1 2021 1,120.9 Total $ 6,529.1 Outstanding claims and benefits payable before 2017, net of reinsurance 8.8 Claims and benefits payable, net of reinsurance $ 273.0 |
Schedule of Average Annual Payout of Incurred Claims by Age, Net of Reinsurance | Average Annual Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Unaudited Year 2 Unaudited Year 3 Unaudited Year 4 Unaudited Year 5 Unaudited 85.6% 13.4% 0.6% 0.2% 0.2% (1) Includes a provision for development on case reserves. (2) Number of paid claims plus open (pending) claims. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that the Company’s reinsurance includes non-proportional treaties. |
Global Housing | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |
Schedule of Claims Development | Global Housing Net Claims Development Tables Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2021 Years Ended December 31, Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Claims (2) Accident Year 2017 Unaudited 2018 Unaudited 2019 Unaudited 2020 Unaudited 2021 2017 $ 964.5 $ 976.2 $ 991.1 $ 986.6 $ 990.0 $ 5.8 252,679 2018 918.1 916.3 916.3 926.1 8.1 202,534 2019 854.1 852.0 870.7 30.5 202,734 2020 858.5 861.9 61.0 209,337 2021 842.7 224.8 193,319 Total $ 4,491.4 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2017 Unaudited 2018 Unaudited 2019 Unaudited 2020 Unaudited 2021 2017 $ 700.7 $ 902.0 $ 942.8 $ 962.8 $ 978.3 2018 622.5 854.6 893.6 908.9 2019 546.3 762.7 818.4 2020 557.0 770.9 2021 547.6 Total $ 4,024.1 Outstanding claims and benefits payable before 2017, net of reinsurance 5.0 Claims and benefits payable, net of reinsurance $ 472.3 |
Schedule of Average Annual Payout of Incurred Claims by Age, Net of Reinsurance | Average Annual Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Unaudited Year 2 Unaudited Year 3 Unaudited Year 4 Unaudited Year 5 Unaudited 67.3% 24.2% 5.0% 1.9% 1.6% (1) Includes a provision for development on case reserves. (2) Number of paid claims plus open (pending) claims. Claim frequency is determined at a claimant reporting level. Depending on the nature of the product and related coverage triggers, it is possible for a claimant to contribute multiple claim counts in a given policy period. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that the Company’s reinsurance includes non-proportional treaties. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Recoverable | The following table provides details of the reinsurance recoverables balance as of the dates indicated: December 31, 2021 2020 Ceded future policyholder benefits and expense $ 338.4 $ 1,133.8 Ceded unearned premium 4,950.0 4,565.4 Ceded claims and benefits payable 821.8 846.2 Ceded paid losses 68.7 60.0 Total $ 6,178.9 $ 6,605.4 |
Schedule of Rating for Existing Reinsurance | The following table provides the reinsurance recoverable as of December 31, 2021 grouped by A.M. Best financial strength ratings: A.M. Best Rating of Reinsurer Ceded future Ceded Ceded claims Ceded paid Total A++ or A+ $ 328.5 $ 82.5 $ 287.6 $ 10.7 $ 709.3 A or A- 4.4 117.8 61.5 13.0 196.7 B++ or B+ 5.5 17.9 2.3 0.1 25.8 Not Rated (1) 0.4 4,735.1 471.6 45.0 5,252.1 Total 338.8 4,953.3 823.0 68.8 6,183.9 Less: Allowance (0.4) (3.3) (1.2) (0.1) (5.0) Net reinsurance recoverable $ 338.4 $ 4,950.0 $ 821.8 $ 68.7 $ 6,178.9 (1) Not Rated ceded claims and benefits payable included reinsurance recoverables of $143.8 million as of December 31, 2021 which were ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program. |
Effect of Reinsurance on Premiums Earned and Benefits Incurred | The effect of reinsurance on premiums earned and benefits incurred was as follows for the periods indicated: Years Ended December 31, 2021 2020 2019 Long Short Total Long Short Total Long Short Total Direct earned premiums $ 96.6 $ 15,813.5 $ 15,910.1 $ 35.5 $ 14,876.5 $ 14,912.0 $ 38.4 $ 13,982.8 $ 14,021.2 Premiums assumed — 168.5 168.5 — 133.3 133.3 — 212.8 212.8 Premiums ceded (88.5) (7,418.0) (7,506.5) (26.4) (6,743.1) (6,769.5) (27.6) (6,247.6) (6,275.2) Net earned premiums $ 8.1 $ 8,564.0 $ 8,572.1 $ 9.1 $ 8,266.7 $ 8,275.8 $ 10.8 $ 7,948.0 $ 7,958.8 Direct policyholder benefits $ 322.2 $ 5,949.2 $ 6,271.4 $ 91.3 $ 5,581.6 $ 5,672.9 $ 198.8 $ 5,336.1 $ 5,534.9 Policyholder benefits assumed — 139.1 139.1 — 122.3 122.3 — 212.9 212.9 Policyholder benefits ceded (315.0) (3,899.8) (4,214.8) (84.9) (3,445.4) (3,530.3) (190.3) (3,171.8) (3,362.1) Net policyholder benefits $ 7.2 $ 2,188.5 $ 2,195.7 $ 6.4 $ 2,258.5 $ 2,264.9 $ 8.5 $ 2,377.2 $ 2,385.7 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table shows the principal amount and carrying value of the Company’s outstanding debt, less unamortized discount and issuance costs as applicable, as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Principal Amount Carrying Value Principal Amount Carrying Value Floating Rate Senior Notes due March 2021 (1) $ — $ — $ 50.0 $ 50.0 4.00% Senior Notes due March 2023 (2) — — 350.0 348.9 4.20% Senior Notes due September 2023 300.0 299.0 300.0 298.4 4.90% Senior Notes due March 2028 300.0 297.5 300.0 297.2 3.70% Senior Notes due February 2030 350.0 347.3 350.0 347.0 2.65% Senior Notes due January 2032 350.0 346.4 — — 6.75% Senior Notes due February 2034 275.0 272.4 275.0 272.3 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (3) 400.0 395.9 400.0 395.4 5.25% Subordinated Notes due January 2061 250.0 244.0 250.0 243.7 Total Debt $ 2,202.5 $ 2,252.9 (1) The outstanding aggregate principal amount was repaid in January 2021. Prior to repayment, these senior notes bore floating interest at a rate equal to three-month LIBOR plus 1.25% per annum. (2) The outstanding aggregate principal amount was redeemed in full in July 2021. |
Schedule of Interest Rate Adjustment | 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. |
Equity Transactions (Tables)
Equity Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Changes in the Number of Common Stock Shares Outstanding | Changes in the number of shares of common stock outstanding are as follows for the periods presented: December 31, 2021 2020 2019 Shares of common stock outstanding, beginning 57,967,808 59,945,893 61,908,979 Vested restricted stock and restricted stock units, net (1) 214,116 213,569 248,333 Issuance related to performance share units (1) 91,845 157,155 117,581 Issuance related to ESPP 113,555 90,166 88,498 Issuance related to MCPS 2,703,911 — — Shares of common stock repurchased (5,337,122) (2,438,975) (2,417,498) Shares of common stock outstanding, ending 55,754,113 57,967,808 59,945,893 (1) Vested restricted stock, restricted stock units and performance share units are shown net of shares of common stock retired to cover participant income tax liabilities. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of Company's Outstanding Restricted Stock Units | A summary of the Company’s outstanding RSUs is presented below: Restricted Stock Units Weighted-Average Restricted stock units outstanding at December 31, 2020 723,726 $ 95.67 Grants (1) 252,613 143.20 Vests (2) (330,053) 96.70 Forfeitures and adjustments (18,852) 110.38 Restricted stock units outstanding at December 31, 2021 627,434 $ 113.84 Restricted stock units vested, but deferred at December 31, 2021 75,270 $ 80.02 (1) The weighted average grant date fair value for RSUs granted in 2020 and 2019 was $96.33 and $102.86, respectively. |
Summary of Share-based Compensation Activity | The following table shows a summary of RSU activity during the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 RSU compensation expense $ 32.8 $ 29.4 $ 29.5 Income tax benefit (5.9) (5.2) (5.3) RSU compensation expense, net of tax $ 26.9 $ 24.2 $ 24.2 The following table shows a summary of PSU activity during the years ended December 31, 2021, 2020 and 2019: Years Ended December 31, 2021 2020 2019 PSU compensation expense $ 31.8 $ 26.5 $ 23.2 Income tax benefit (3.3) (2.6) (2.7) PSU compensation expense, net of tax $ 28.5 $ 23.9 $ 20.5 |
Schedule of Company's Outstanding Performance Share Units | A summary of the Company’s outstanding PSUs is presented below: Performance Weighted-Average Performance share units outstanding at December 31, 2020 674,099 $ 101.45 Grants (1) 208,040 148.04 Vests (2) (177,157) 123.84 Performance adjustment (3) 28,290 125.57 Forfeitures and adjustments (22,156) 107.30 Performance share units outstanding at December 31, 2021 711,116 $ 110.31 (1) The weighted average grant date fair value for PSUs granted in 2020 and 2019 was $87.53 and $105.23, respectively. (2) The total fair value of PSUs vested was $24.6 million, $24.9 million and $19.7 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Schedule of Estimation of Fair Value of Awards | For awards granted during the 2021 2020 2019 Expected volatility 34.14 % 27.23 % 20.92 % Expected term (years) 2.79 2.79 2.80 Risk free interest rate 0.29 % 0.41 % 2.40 % |
Schedule of Share-based Payment Award, ESPP, Valuation Assumptions | For awards issued during the 2021 2020 2019 Expected volatility 24.56 - 28.67% 16.38 - 52.04% 18.47 - 26.91% Risk free interest rates 0.06 - 0.09% 0.17 - 1.57% 2.10 - 2.56% Dividend yield 1.67 - 1.98% 1.89 - 2.46% 2.18 - 2.63% Expected term (years) 0.5 0.5 0.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income, Net of Tax | The following tables summarize those reclassification adjustments (net of taxes) for the periods indicated: Year Ended December 31, 2021 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net (losses) on Pension Plans Accumulated Balance at December 31, 2020 $ (295.6) $ 1,097.6 $ 14.7 $ (106.9) $ 709.8 Change in accumulated other comprehensive income before reclassifications (31.0) (215.9) — 17.3 (229.6) Amounts reclassified from accumulated other comprehensive income (0.3) (625.1) (2.3) (2.5) (630.2) Net current-period other comprehensive (loss) income (31.3) (841.0) (2.3) 14.8 (859.8) Balance at December 31, 2021 $ (326.9) $ 256.6 $ 12.4 $ (92.1) $ (150.0) Year Ended December 31, 2020 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net (losses) on Pension Plans Accumulated Balance at December 31, 2019 $ (358.9) $ 872.0 $ 17.1 $ (118.7) $ 411.5 Change in accumulated other comprehensive income before reclassifications 24.9 233.5 — 15.8 274.2 Amounts reclassified from accumulated other comprehensive income 38.4 (7.9) (2.4) (4.0) 24.1 Net current-period other comprehensive income (loss) 63.3 225.6 (2.4) 11.8 298.3 Balance at December 31, 2020 $ (295.6) $ 1,097.6 $ 14.7 $ (106.9) $ 709.8 Year Ended December 31, 2019 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net (losses) on Pension Plans Accumulated Balance at December 31, 2018 $ (375.6) $ 316.1 $ 18.4 $ (114.3) $ (155.4) Change in accumulated other comprehensive income before reclassifications 16.7 565.0 1.0 (4.5) 578.2 Amounts reclassified from accumulated other comprehensive income — (9.1) (2.3) 0.1 (11.3) Net current-period other comprehensive income (loss) 16.7 555.9 (1.3) (4.4) 566.9 Balance at December 31, 2019 $ (358.9) $ 872.0 $ 17.1 $ (118.7) $ 411.5 |
Reclassification out of Accumulated Other Comprehensive Income | The following tables summarize the reclassifications out of AOCI for the periods indicated. Details about AOCI components Amount reclassified from AOCI Affected line item in the statement where Years Ended December 31, 2021 2020 2019 Foreign currency translation adjustment $ (0.8) $ 38.4 $ — Iké net losses (see Note 5) 0.5 — — Provision for income taxes $ (0.3) $ 38.4 $ — Net of tax Net unrealized gains (losses) on securities $ (797.8) $ (10.0) $ (11.5) Net realized gains (losses) on investments and fair value changes to equity securities 172.7 2.1 2.4 Provision for income taxes $ (625.1) $ (7.9) $ (9.1) Net of tax Unrealized gains on derivative transactions $ (2.8) $ (2.9) $ (3.0) Interest expense 0.5 0.5 0.7 Provision for income taxes $ (2.3) $ (2.4) $ (2.3) Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss $ 7.2 $ 5.1 $ — (1) Amortization of prior service credit (13.5) (11.3) — (1) Settlement loss 3.1 1.0 0.1 (1) (3.2) (5.2) 0.1 Total before tax 0.7 1.2 — Provision for income taxes $ (2.5) $ (4.0) $ 0.1 Net of tax Total reclassifications for the period $ (630.2) $ 24.1 $ (11.3) Net of tax |
Statutory Information (Tables)
Statutory Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Summary of Statutory Net Income and Capital and Surplus | The combined statutory net income, excluding intercompany dividends and surplus note interest, and capital and surplus of the Company’s U.S. domiciled statutory insurance subsidiaries is as follows: Years Ended December 31, 2021 2020 2019 Property and casualty companies $ 468.0 $ 445.5 $ 313.3 Life and health companies 18.6 98.3 104.7 Total statutory net income (1) $ 486.6 $ 543.8 $ 418.0 (1) There was no statutory net income for the year ended December 31, 2021 from the insurance entities included in the disposed Global Preneed business due to the August 2021 sale. December 31, 2021 2020 Property and casualty companies $ 1,529.1 $ 1,567.3 Life and health companies 120.3 445.8 Total statutory capital and surplus (1) $ 1,649.4 $ 2,013.1 (1) There was no statutory capital and surplus as of December 31, 2021 from the insurance entities included in the disposed Global Preneed business. |
Retirement and Other Employee_2
Retirement and Other Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Summary of Pension Benefits and Retirement Health Benefits Plans | The following table presents information on the Plans for the periods indicated: Pension Benefits Retirement Health Benefits 2021 2020 2021 2020 Change in projected benefit obligation Projected benefit obligation at beginning of year $ (895.3) $ (825.1) $ (21.3) $ (85.4) Interest cost (15.2) (22.4) (0.1) (0.7) Amendments — — — 65.6 Settlements 15.7 — — — Actuarial gain (loss) 28.0 (99.0) 1.5 (5.4) Benefits paid 34.5 51.2 4.6 4.6 Projected benefit obligation at end of year $ (832.3) $ (895.3) $ (15.3) $ (21.3) Change in plan assets Fair value of plan assets at beginning of year $ 852.8 $ 809.0 $ 44.3 $ 44.0 Actual return on plan assets 20.7 88.0 1.0 4.7 Employer contributions 5.5 8.3 0.2 0.2 Settlements (15.7) — — — Benefits paid (including administrative expenses) (35.8) (52.5) (4.6) (4.6) Fair value of plan assets at end of year $ 827.5 $ 852.8 $ 40.9 $ 44.3 Funded status at end of year $ (4.8) $ (42.5) $ 25.6 $ 23.0 |
Summary of Projected Benefit Obligations and the Accumulated Benefit Obligations | As of December 31, 2021 and 2020, the fair value of plan assets, projected benefit obligation, funded status at end of year and the accumulated benefit obligation of Pension Benefits were as follows: Qualified Pension Benefits Unfunded Nonqualified Total Pension Benefits 2021 2020 2021 2020 2021 2020 Fair value of plan assets $ 827.5 $ 852.8 $ — $ — $ 827.5 $ 852.8 Projected benefit obligation (752.7) (809.6) (79.6) (85.7) (832.3) (895.3) Funded status at end of year $ 74.8 $ 43.2 $ (79.6) $ (85.7) $ (4.8) $ (42.5) Accumulated benefit obligation $ 752.7 $ 809.6 $ 79.6 $ 85.7 $ 832.3 $ 895.3 |
Amount Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Retirement Health Benefits 2021 2020 2021 2020 Assets $ 74.8 $ 43.2 $ 25.6 $ 23.0 Liabilities $ (79.6) $ (85.7) $ — $ — |
Amounts Recognized in Accumulated Other Comprehensive Income | Amounts recognized in AOCI consist of: Pension Benefits Retirement Health Benefits 2021 2020 2019 2021 2020 2019 Net (loss) gain $ (163.2) $ (194.2) $ (157.4) $ 6.2 $ 5.9 $ 8.5 Prior service (cost) credit (0.4) (0.4) (0.5) 40.8 54.3 — $ (163.6) $ (194.6) $ (157.9) $ 47.0 $ 60.2 $ 8.5 |
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost, recorded in underwriting, general and administrative expenses in the consolidated statements of operations, and other amounts recognized in AOCI for the years ended December 31, 2021, 2020, and 2019 were as follows: Pension Benefits Retirement Health Benefits 2021 2020 2019 2021 2020 2019 Net periodic benefit cost Interest cost $ 15.2 $ 22.4 $ 28.6 $ 0.1 $ 0.7 $ 3.1 Expected return on plan assets (27.3) (30.6) (35.5) (1.5) (1.8) (1.9) Amortization of prior service credit (cost) 0.1 0.1 — (13.6) (11.3) — Amortization of net loss (gain) 7.8 5.1 1.2 (0.6) — (1.2) Curtailment/settlement loss 3.1 1.0 0.1 — — — Net periodic benefit cost $ (1.1) $ (2.0) $ (5.6) $ (15.6) $ (12.4) $ — Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive income Prior service cost $ — — — $ — (65.6) — Net (gain) loss (20.1) 42.9 16.8 (0.9) 2.5 (12.2) Amortization of prior service (cost) credit (0.1) (0.1) — 13.6 11.3 — Amortization of net (loss) gain (10.9) (6.1) (1.3) 0.6 — 1.2 Total recognized in accumulated other comprehensive (loss) income $ (31.1) $ 36.7 $ 15.5 $ 13.3 $ (51.8) $ (11.0) Total recognized in net periodic benefit cost and other comprehensive (loss) income $ (32.2) $ 34.7 $ 9.9 $ (2.3) $ (64.2) $ (11.0) |
Weighted-Average Assumptions Used to Determine Projected Benefit Obligation | Determination of the projected benefit obligation was based on the following weighted-average assumptions for the years ended December 31, 2021, 2020 and 2019: Qualified Pension Benefits Unfunded Nonqualified Pension Benefits Retirement Health Benefits 2021 2020 2019 2021 2020 2019 2021 2020 2019 Discount rate 2.79 % 2.39 % 3.27 % 2.68 % 2.20 % 3.11 % 1.08 % 0.60 % 3.23 % |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | Determination of the net periodic benefit cost was based on the following weighted-average assumptions for the years ended December 31, 2021, 2020 and 2019: Qualified Pension Benefits Unfunded Nonqualified Pension Benefits Retirement Health Benefits 2021 2020 2019 2021 2020 2019 2021 2020 Pre-Amendment 2020 Post-Amendment 2019 Discount rates: Effective discount rate for benefit obligations 2.39 % 3.27 % 4.33 % 2.20 % 3.11 % 4.21 % 0.60 % 3.23 % 1.55 % 4.30 % Effective rate for interest on benefit obligations 1.80 % 2.84 % 3.98 % 1.45 % 2.77 % 3.88 % 0.55 % 2.83 % 1.53 % 3.99 % Expected long-term return on plan assets 3.65 % 4.15 % 4.75 % — % — % — % 3.65 % 4.15 % 4.15 % 4.75 % |
Summary of Health Care Cost Trend Rates | The assumed health care cost trend rates used in measuring the accumulated postretirement benefit obligation and net periodic benefit cost were as follows: Retirement Health Benefits 2021 2020 2019 Health care cost trend rate assumed for next year: Pre-65 Non-reimbursement Plan 5.5% 8.0% 8.2% Post-65 Non-reimbursement Plan (Medical) 4.1% 5.9% 5.9% Post-65 Non-reimbursement Plan (Rx) 6.9% 13.0% 13.5% Pre-65 Reimbursement Plan 5.4% 9.7% 9.9% Post-65 Reimbursement Plan 5.4% 9.7% 9.9% Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.0% 4.5% 4.5% Year that the rate reaches the ultimate trend rate Pre-65 Non-reimbursement Plan 2045 2039 2038 Post-65 Non-reimbursement Plan (Medical & Rx) 2045 2039 2038 Pre-65 Reimbursement Plan 2045 2039 2038 Post-65 Reimbursement Plan 2045 2039 2038 |
Allocation of Plan Assets, Based on the Fair Value of Assets Held and Target Allocation | The fair value hierarchy for the Company’s qualified pension plan and other postretirement benefit plan assets at December 31, 2021 by asset category, is as follows: Qualified Pension Benefits December 31, 2021 Financial Assets Total Level 1 Level 2 Cash equivalents: Short-term investment funds $ 11.1 $ — $ 11.1 Equity securities: Preferred stock 1.1 1.1 — Mutual funds - U.S. listed large cap 33.8 33.8 — Fixed maturity securities: U.S. & foreign government and government agencies and authorities 231.2 — 231.2 Corporate - U.S. & foreign investment grade 395.5 — 395.5 Corporate - U.S. & foreign high yield 42.2 — 42.2 Mutual funds - U.S. investment grade 42.8 42.8 — Other investments measured at net asset value (1) 118.8 — — Total financial assets (2) $ 876.5 $ 77.7 $ 680.0 (1) In accordance with fair value measurements and disclosures guidance, certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The net asset values of $35.7 million, $7.3 million and $75.8 million as of December 31, 2021 are used as a practical expedient to fair value of the multi-strategy hedge fund, private equity fund and real estate fund, respectively. (2) The difference between the fair value of Plan assets above and the amount used in determining the funded status is due to interest receivable and net receivable/payable for unsettled trades, which is not required to be included in the fair value hierarchy. Retirement Health Benefits December 31, 2021 Financial Assets Total Level 1 Level 2 Cash equivalents: Short-term investment funds $ 0.6 $ — $ 0.6 Equity securities: Preferred stock 0.1 0.1 — Mutual funds - U.S. listed large cap 1.7 1.7 — Fixed maturity securities: U.S. & foreign government and government agencies and authorities 11.4 — 11.4 Corporate - U.S. & foreign investment grade 19.6 — 19.6 Corporate - U.S. & foreign high yield 2.1 — 2.1 Mutual funds - U.S. investment grade 2.1 2.1 — Other investments measured at net asset value (1) 5.8 — — Total financial assets (2) $ 43.4 $ 3.9 $ 33.7 (1) In accordance with fair value measurements and disclosures guidance, certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The net asset values of $1.8 million, $0.3 million and $3.7 million as of December 31, 2021 are used as a practical expedient to fair value of the multi-strategy hedge fund, private equity fund and real estate fund, respectively. (2) The difference between the fair value of Plan assets above and the amount used in determining the funded status is due to interest receivable and net receivable/payable for unsettled trades, which is not required to be included in the fair value hierarchy. The fair value hierarchy for the Company’s qualified pension plan and other postretirement benefit plan assets at December 31, 2020 by asset category, is as follows: Qualified Pension Benefits December 31, 2020 Financial Assets Total Level 1 Level 2 Cash and cash equivalents: Short-term investment funds $ 10.6 $ — $ 10.6 Equity securities: Preferred stock 1.2 1.2 — Mutual funds - U.S. listed large cap 26.2 26.2 — Fixed maturity securities: U.S. & foreign government and government agencies and authorities 174.8 — 174.8 Corporate - U.S. & foreign investment grade 483.1 — 483.1 Corporate - U.S. & foreign high yield 55.5 — 55.5 Mutual funds - U.S. investment grade 15.9 15.9 — Other investments measured at net asset value (1) 108.4 — — Total financial assets (2) $ 875.7 $ 43.3 $ 724.0 (1) In accordance with fair value measurements and disclosures guidance, certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The net asset values of $38.2 million, $7.1 million and $63.1 million as of December 31, 2020 are used as a practical expedient to fair value of the multi-strategy hedge fund, private equity fund and real estate fund, respectively. The multi-strategy hedge fund, which is reported on a one month lag, was liquidated on December 31, 2020. (2) The difference between the fair value of Plan assets above and the amount used in determining the funded status is due to interest receivable and net receivable/payable for unsettled trades, which is not required to be included in the fair value hierarchy. Retirement Health Benefits December 31, 2020 Financial Assets Total Level 1 Level 2 Cash and cash equivalents: Short-term investment funds $ 0.6 $ — $ 0.6 Equity securities: Preferred stock 0.1 0.1 — Mutual funds - U.S. listed large cap 1.3 1.3 — Fixed maturity securities: U.S. & foreign government and government agencies and authorities 9.1 — 9.1 Corporate - U.S. & foreign investment grade 25.1 — 25.1 Corporate - U.S. & foreign high yield 2.9 — 2.9 Mutual funds - U.S. investment grade 0.8 0.8 — Other investments measured at net asset value (1) 5.7 — — Total financial assets (2) $ 45.6 $ 2.2 $ 37.7 (1) In accordance with fair value measurements and disclosures guidance, certain investments that are measured at fair value using the net asset value practical expedient have not been classified in the fair value hierarchy. The net asset values of $2.0 million, $0.4 million and $3.3 million as of December 31, 2020 are used as a practical expedient to fair value of the multi-strategy hedge fund, private equity fund and real estate fund, respectively. The multi-strategy hedge fund, which is reported on a one month lag, was liquidated on December 31, 2020. (2) The difference between the fair value of Plan assets above and the amount used in determining the funded status is due to interest receivable and net receivable/payable for unsettled trades, which is not required to be included in the fair value hierarchy. |
Estimated Future Benefit Payments From the Plans | The following pension benefits are expected to be paid over the next ten-year period: Pension Retirement 2022 $ 66.3 $ 5.1 2023 51.6 5.2 2024 52.8 5.3 2025 51.7 — 2026 53.6 — 2027 - 2031 246.5 — Total $ 522.5 $ 15.6 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income, Weighted Average Common Shares Used in Calculating Basic Earnings per Common Share and Diluted EPS | The following table presents net income, the weighted average common shares used in calculating basic EPS and those used in calculating diluted EPS for each period presented below. Diluted EPS reflects the incremental common shares from: (1) common shares issuable upon vesting of PSUs and ESPP using the treasury stock method; and (2) common shares issuable upon conversion of the MCPS using the if-converted method. Refer to Notes 20 and 21 for further information regarding potential common stock 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. Years Ended December 31, 2021 2020 2019 Numerator Net income from continuing operations $ 613.5 $ 520.4 $ 306.4 Less: Net income attributable to non-controlling interest — (0.9) (4.2) Net income from continuing operations attributable to stockholders 613.5 519.5 302.2 Less: Preferred stock dividends (4.7) (18.7) (18.7) Net income from continuing operations attributable to common stockholders 608.8 500.8 283.5 Less: Common stock dividends paid (157.6) (154.6) (151.4) Undistributed earnings $ 451.2 $ 346.2 $ 132.1 Net income from continuing operations attributable to common stockholders $ 608.8 $ 500.8 $ 283.5 Add: Net income (loss) from discontinued operations 758.9 (77.7) 80.4 Net income attributable to common stockholders $ 1,367.7 $ 423.1 $ 363.9 Denominator Weighted average common shares outstanding used in basic per common share calculations 59,140,861 60,114,670 61,942,969 Incremental common shares from: PSUs 403,316 311,712 332,873 ESPP 45,604 51,631 37,626 MCPS 533,913 2,701,925 — Weighted average common shares outstanding used in diluted per common share calculations 60,123,694 63,179,938 62,313,468 Earnings per common share – Basic Distributed earnings $ 2.66 $ 2.57 $ 2.44 Undistributed earnings 7.63 5.76 2.14 Net income from continuing operations 10.29 8.33 4.58 Net income (loss) from discontinued operations 12.84 (1.29) 1.29 Net income attributable to common stockholders $ 23.13 $ 7.04 $ 5.87 Earnings per common share – Diluted Distributed earnings $ 2.62 $ 2.45 $ 2.43 Undistributed earnings 7.58 5.77 2.13 Net income from continuing operations 10.20 8.22 4.56 Net income (loss) from discontinued operations 12.63 (1.23) 1.28 Net income attributable to common stockholders $ 22.83 $ 6.99 $ 5.84 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | As the prior period reclassification to reflect the impacts of discontinued operations represented a significant retrospective change (see Note 4), the Company’s quarterly results of operations for the years ended December 31, 2021 and 2020 have been summarized in the tables below: Three Month Periods Ended March 31 June 30 September 30 December 31 2021 Total revenues $ 2,432.6 $ 2,542.3 $ 2,637.8 $ 2,574.9 Income before provision for income taxes 193.1 236.6 191.5 161.8 Net income from continuing operations 148.5 184.7 153.6 126.7 Net income attributable to common stockholders 158.3 203.4 882.4 123.6 Basic per share data: Income before provision for income taxes $ 3.26 $ 3.88 $ 3.24 $ 2.82 Net income from continuing operations $ 2.43 $ 3.03 $ 2.60 $ 2.21 Net income attributable to common stockholders $ 2.67 $ 3.34 $ 14.92 $ 2.16 Diluted per share data: Income before provision for income taxes $ 3.13 $ 3.86 $ 3.22 $ 2.80 Net income from continuing operations $ 2.41 $ 3.01 $ 2.58 $ 2.20 Net income attributable to common stockholders $ 2.64 $ 3.32 $ 14.83 $ 2.14 March 31 June 30 September 30 December 31 2020 Total revenues $ 2,448.7 $ 2,352.0 $ 2,376.7 $ 2,418.1 Income before provision for income taxes 100.1 209.3 112.5 158.9 Net income from continuing operations 148.6 164.7 88.0 119.1 Net income (loss) attributable to common stockholders 150.0 173.5 (34.9) 134.5 Basic per share data: Income before provision for income taxes $ 1.65 $ 3.47 $ 1.87 $ 2.68 Net income from continuing operations $ 2.36 $ 2.65 $ 1.39 $ 1.93 Net income (loss) attributable to common stockholders $ 2.48 $ 2.87 $ (0.58) $ 2.27 Diluted per share data: Income before provision for income taxes $ 1.57 $ 3.30 $ 1.86 $ 2.55 Net income from continuing operations $ 2.32 $ 2.59 $ 1.38 $ 1.91 Net income (loss) attributable to common stockholders $ 2.43 $ 2.81 $ (0.58) $ 2.23 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2021, the lease liability by maturity is as follows: 2022 $ 17.4 2023 13.8 2024 10.6 2025 6.5 2026 5.0 Thereafter 16.1 Total future lease payments 69.4 Less: Imputed interest (8.9) Total lease liability $ 60.5 |
Nature of Operations (Details)
Nature of Operations (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Line Items] | |||
Loss from remeasurement | $ 7 | $ 7.5 | $ 18.4 |
Loans receivable, nonaccrual loan, number of days delinquent | 90 days | ||
Restricted cash and cash equivalents | $ 27.9 | $ 14.6 | |
Minimum | |||
Accounting Policies [Line Items] | |||
Premium revenue recognition period | 3 years | ||
Maximum | |||
Accounting Policies [Line Items] | |||
Premium revenue recognition period | 5 years | ||
Buildings | Maximum | |||
Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives, maximum (in years) | 39 years 6 months | ||
Furniture, fixtures and equipment | Maximum | |||
Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives, maximum (in years) | 7 years | ||
Equipment | Maximum | |||
Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives, maximum (in years) | 5 years | ||
Software | Maximum | |||
Accounting Policies [Line Items] | |||
Property and equipment, estimated useful lives, maximum (in years) | 15 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Reserve Information by Segment) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Segment Reporting Information [Line Items] | ||
Future Policy Benefits and Expenses | $ 413.2 | $ 1,358.5 |
Unearned Premiums | 18,623.7 | 17,293.1 |
Case Reserves | 579.2 | 610.4 |
Incurred But Not Reported Reserves | 1,016.7 | 999.9 |
Long Duration | Discontinued Operations | ||
Segment Reporting Information [Line Items] | ||
Future Policy Benefits and Expenses | 413.2 | 1,358.5 |
Unearned Premiums | 2.2 | 4 |
Case Reserves | 80 | 168 |
Incurred But Not Reported Reserves | 7.7 | 14.4 |
Short Duration | Global Lifestyle | ||
Segment Reporting Information [Line Items] | ||
Future Policy Benefits and Expenses | 0 | 0 |
Unearned Premiums | 17,101.9 | 15,817.9 |
Case Reserves | 125.1 | 133.7 |
Incurred But Not Reported Reserves | 386.7 | 393.9 |
Short Duration | Global Housing | ||
Segment Reporting Information [Line Items] | ||
Future Policy Benefits and Expenses | 0 | 0 |
Unearned Premiums | 1,516 | 1,467.4 |
Case Reserves | 256.6 | 180 |
Incurred But Not Reported Reserves | 508.1 | 471.9 |
Short Duration | Discontinued Operations | ||
Segment Reporting Information [Line Items] | ||
Future Policy Benefits and Expenses | 0 | 0 |
Unearned Premiums | 3.6 | 3.8 |
Case Reserves | 117.5 | 128.7 |
Incurred But Not Reported Reserves | $ 114.2 | $ 119.7 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Millions | Dec. 01, 2020 | May 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill acquired | $ 2,571.6 | $ 2,589.3 | $ 2,205.4 | ||
HYLA | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 346.9 | ||||
Business combination, base purchase price | 325 | ||||
Business combination, purchase price adjustment | 21.9 | ||||
Business combination, net asset acquired | 39.5 | ||||
Goodwill acquired | 213.4 | ||||
Business combination, acquired intangible assets other than goodwill | 94 | ||||
Business combination, deferred tax liabilities | $ 19.2 | ||||
HYLA | Customer Relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired, weighted average useful life | 15 years | ||||
HYLA | Software | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired, weighted average useful life | 6 years | ||||
American Financial & Automotive Services | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 176.9 | ||||
Business combination, base purchase price | 157.5 | ||||
Business combination, purchase price adjustment | 17.9 | ||||
Goodwill acquired | 104 | ||||
Business combination, acquired intangible assets other than goodwill | $ 75.8 | ||||
Intangible assets acquired, weighted average useful life | 15 years | ||||
Business combination, contingent consideration | $ 1.5 | ||||
Business combination, estimated liabilities assumed | $ 2.9 |
Dispositions and Exit Activit_3
Dispositions and Exit Activities (Narrative) (Details) $ in Millions | Aug. 02, 2021USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | May 31, 2020USD ($) | Aug. 01, 2021 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2014USD ($) | Jul. 31, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Future policy benefits and expenses | $ 1,358.5 | $ 413.2 | $ 1,358.5 | |||||||||||
Reinsurance recoverable | 6,605.4 | 6,178.9 | 6,605.4 | |||||||||||
Other investments | 686.8 | 506.3 | 686.8 | |||||||||||
Claims and benefits payable | 1,610.3 | $ 1,613.1 | 1,595.9 | 1,610.3 | $ 1,613.1 | $ 1,606.3 | ||||||||
Iké foreign currency hedge | [1] | 0 | 22 | 0 | ||||||||||
Iké net losses | 0 | 5.9 | 163 | |||||||||||
Deferred tax assets, valuation allowance | 27.6 | 25.1 | 27.6 | |||||||||||
Valuation allowance | $ 106.7 | |||||||||||||
Proceeds from transfer of rights to ACA recoverables (Note 4) | 0 | 0 | 26.7 | |||||||||||
Ike | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Equity method investment ownership percentage | 40.00% | |||||||||||||
Amount paid to acquire investment | $ 110 | |||||||||||||
Impairment and put/call valuation losses | $ 22.3 | 163 | ||||||||||||
Impairment of put/call obligation | 78.3 | |||||||||||||
Cumulative foreign currency translation income (loss) | (38.4) | |||||||||||||
Pre-tax benefit (charge) related to change in value of put/call option | (84.7) | |||||||||||||
Iké foreign currency hedge | $ 22 | |||||||||||||
Derivative gains (losses) recorded to income statement | 20.3 | |||||||||||||
Iké net losses | 5.9 | 163 | ||||||||||||
Tax benefit from impairment and put/call losses | 6.7 | |||||||||||||
Tax expense on income from financial derivative | 4.3 | |||||||||||||
Deferred tax assets, equity method investment | 48.8 | 48.8 | ||||||||||||
Deferred tax assets, valuation allowance | 48.8 | 48.8 | $ 0.9 | |||||||||||
After-tax charges | 9.3 | 163.9 | ||||||||||||
CLO Asset Management Platform | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Gain (loss) on disposal | 18.3 | |||||||||||||
Discontinued Operations, Held-for-sale | Global Preneed | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Sale of discontinued operation, aggregated sale price | $ 1,340 | |||||||||||||
Sale of discontinued operation, base sale price | 1,250 | |||||||||||||
Discontinued operation, accrued interest rate on base purchase price | 0.06 | |||||||||||||
Discontinued operation, transaction costs | 37.6 | |||||||||||||
Proceeds from sale of business | 1,310 | |||||||||||||
Discontinued operation, gain on disposition of business, net of tax | 720.1 | |||||||||||||
Gain on disposition of business, recognized from AOCI, net of tax | 606 | |||||||||||||
Future policy benefits and expenses | 8,921.8 | 8,703.5 | 8,703.5 | |||||||||||
Reinsurance recoverable | 3,235.4 | 3,234.5 | 3,234.5 | |||||||||||
Other investments | 14.8 | 52 | 52 | |||||||||||
Claims and benefits payable | $ 1,024.2 | 1,049.2 | 1,049.2 | |||||||||||
Disposal group, disposed of by sale, not discontinued operations | Ike | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Loss on sale of subsidiary and settlement of put/call obligations, before tax | 3.9 | |||||||||||||
Loss on sale of subsidiary and settlement of put/call obligations, after tax | $ 2.9 | |||||||||||||
Disposal group, disposed of by sale, not discontinued operations | Ike | Iké Loan | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Loans, outstanding | $ 34 | |||||||||||||
Disposal group, disposed of by sale, not discontinued operations | CLO Asset Management Platform | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Sale of discontinued operation, aggregated sale price | $ 20 | |||||||||||||
Additional exit related expenses | 7.5 | |||||||||||||
Disposal group, disposed of by sale, not discontinued operations | Time Insurance Company | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Proceeds from collection of risk corridor receivable, ACA Act | 101.4 | |||||||||||||
Proceeds retained from collection of risk corridor receivable, ACA Act | 14.9 | |||||||||||||
Disposal group, disposed of by sale, not discontinued operations | Time Insurance Company | ACA Risk Corridor Receivables | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Valuation allowance adjustment | $ 74.7 | $ 26.7 | ||||||||||||
Disposal Group, Held-for-sale, Not Discontinued Operations | John Alden Life Insurance Company | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Future policy benefits and expenses | 915.8 | |||||||||||||
Reinsurance recoverable | 881.6 | |||||||||||||
Other investments | 159.6 | |||||||||||||
Claims and benefits payable | $ 117.2 | |||||||||||||
Third-party | Disposal group, disposed of by sale, not discontinued operations | Time Insurance Company | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Participation interest (as a percentage) | 100.00% | |||||||||||||
Proceeds from transfer of rights to ACA recoverables (Note 4) | $ 26.7 | |||||||||||||
Claim proceeds in excess of upfront cash proceeds (as a percentage) | 20.00% | 20.00% | ||||||||||||
Proceeds from collection of risk corridor receivable, ACA Act, amount remitted | 86.5 | |||||||||||||
Repayment for settlement of participation rights agreement | $ 59.8 | |||||||||||||
[1] | Relates to Iké disposition and related financing. Refer to Note 4 for additional information. |
Dispositions and Exit Activit_4
Dispositions and Exit Activities (Schedule of Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Aug. 02, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Investments: | |||||
Fixed maturity securities available for sale, at fair value | $ 7,215.3 | $ 6,815.5 | |||
Equity securities at fair value | 445.7 | 290.2 | |||
Commercial mortgage loans on real estate, at amortized cost | 256.5 | 138.3 | |||
Short-term investments | 247.8 | 292 | |||
Other investments | 506.3 | 686.8 | |||
Total investments | 8,671.6 | 8,222.8 | |||
Cash and cash equivalents | 2,040.8 | 2,207.6 | |||
Premiums and accounts receivable | 1,942.5 | 1,548.9 | |||
Reinsurance recoverable | 6,178.9 | 6,605.4 | |||
Accrued investment income | 62.1 | 67 | |||
Deferred acquisition costs | 8,811 | 7,388 | $ 6,121.5 | $ 4,203.4 | |
Property and equipment, net | 561.4 | 446.1 | |||
Value of business acquired | 583.4 | 1,152.2 | 1,993.7 | 3,140.8 | |
Other assets | 680.2 | 496.2 | |||
Assets held in separate accounts | 11.9 | 11.5 | |||
Total assets held for sale | 33,911.5 | 44,649.9 | |||
Liabilities | |||||
Future policy benefits and expenses | 413.2 | 1,358.5 | |||
Unearned premiums | 18,623.7 | 17,293.1 | |||
Claims and benefits payable | 1,595.9 | 1,610.3 | $ 1,613.1 | $ 1,606.3 | |
Commissions payable | 692.7 | 699.1 | |||
Reinsurance balances payable | 420.4 | 359.3 | |||
Accounts payable and other liabilities | 3,032.5 | 2,640.5 | |||
Liabilities related to separate accounts | 11.9 | 11.5 | |||
Total liabilities held for sale | $ 28,421.8 | 38,695.1 | |||
Global Preneed | Discontinued Operations, Held-for-sale | |||||
Investments: | |||||
Fixed maturity securities available for sale, at fair value | $ 6,761 | 6,633.5 | |||
Equity securities at fair value | 112.6 | 113.9 | |||
Commercial mortgage loans on real estate, at amortized cost | 599 | 616 | |||
Short-term investments | 58.7 | 41.2 | |||
Other investments | 14.8 | 52 | |||
Total investments | 7,546.1 | 7,456.6 | |||
Cash and cash equivalents | 27.3 | 21 | |||
Premiums and accounts receivable | 4.2 | 7.5 | |||
Reinsurance recoverable | 3,235.4 | 3,234.5 | |||
Accrued investment income | 66.8 | 62.7 | |||
Deferred acquisition costs | 334 | 185.5 | |||
Property and equipment, net | 49.3 | 47.2 | |||
Value of business acquired | 3.9 | 4.3 | |||
Other assets | 20.8 | 22.6 | |||
Assets held in separate accounts | 2,322.1 | 2,176.8 | |||
Total assets held for sale | 13,609.9 | 13,218.7 | |||
Liabilities | |||||
Future policy benefits and expenses | 8,921.8 | 8,703.5 | |||
Unearned premiums | 36.6 | 14.9 | |||
Claims and benefits payable | 1,024.2 | 1,049.2 | |||
Commissions payable | 10.6 | 9.4 | |||
Reinsurance balances payable | 4.1 | 3.1 | |||
Accounts payable and other liabilities | 127.2 | 154.4 | |||
Liabilities related to separate accounts | 2,322.1 | 2,176.8 | |||
Total liabilities held for sale | $ 12,446.6 | $ 12,111.3 |
Dispositions and Exit Activit_5
Dispositions and Exit Activities (Schedule of Income (Loss) from Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||||||||||
Net earned premiums | $ 8,572.1 | $ 8,275.8 | $ 7,958.8 | ||||||||
Fees and other income | 1,172.9 | 1,042.3 | 1,170.1 | ||||||||
Net investment income | 314.4 | 285.6 | 383.2 | ||||||||
Net realized (losses) gains on investments and fair value changes to equity securities | 128.2 | (8.2) | 57 | ||||||||
Gain on disposal of businesses | 0 | 0 | (17) | ||||||||
Total revenues | $ 2,574.9 | $ 2,637.8 | $ 2,542.3 | $ 2,432.6 | $ 2,418.1 | $ 2,376.7 | $ 2,352 | $ 2,448.7 | 10,187.6 | 9,595.5 | 9,569.1 |
Benefits, losses and expenses | |||||||||||
Policyholder benefits | 2,195.7 | 2,264.9 | 2,385.7 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 3,835.8 | 3,591.5 | 3,237.2 | ||||||||
Underwriting, general and administrative expenses | 3,240.6 | 3,047.9 | 3,186.5 | ||||||||
Total benefits, losses and expenses | 9,404.6 | 9,014.7 | 9,114.4 | ||||||||
Net income (loss) from discontinued operations (Note 4) | 758.9 | (77.7) | 80.4 | ||||||||
Global Preneed | Discontinued Operations, Held-for-sale | |||||||||||
Revenues | |||||||||||
Net earned premiums | 42.6 | 66.9 | 61.2 | ||||||||
Fees and other income | 91 | 151.1 | 155.4 | ||||||||
Net investment income | 168.4 | 289.3 | 291.8 | ||||||||
Net realized (losses) gains on investments and fair value changes to equity securities | 4.2 | (8) | 9.3 | ||||||||
Gain on disposal of businesses | 916.2 | 0 | 0 | ||||||||
Total revenues | 1,222.4 | 499.3 | 517.7 | ||||||||
Benefits, losses and expenses | |||||||||||
Policyholder benefits | 172.7 | 284.4 | 269 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 46.2 | 80.5 | 84.9 | ||||||||
Underwriting, general and administrative expenses | 39 | 62.1 | 64 | ||||||||
Goodwill impairment | 0 | 137.8 | 0 | ||||||||
Total benefits, losses and expenses | 257.9 | 564.8 | 417.9 | ||||||||
Income (loss) from discontinued operations before income taxes | 964.5 | (65.5) | 99.8 | ||||||||
Provision for income taxes | 205.6 | 12.2 | $ 19.4 | ||||||||
Net income (loss) from discontinued operations (Note 4) | 758.9 | $ (77.7) | |||||||||
Pre-tax AOCI recognized in earning upon sale | 774.2 | ||||||||||
Reclassification from AOCI, tax | $ 168.2 |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of adoption | $ 5,489.7 | $ 5,954.8 | $ 5,682.1 | $ 5,133.9 | |
Total allowance for credit losses | 18 | 43.9 | |||
Total reinsurance recoverable | 6,178.9 | 6,605.4 | |||
Increase (decrease) in the CECL allowance for reinsurance recoverable | (1.5) | 3.3 | |||
Increase in the CECL allowance for premium and accounts receivables | (0.7) | 4 | |||
Allowance for credit losses | 1.1 | 1.6 | $ 0.4 | 0.3 | |
Fixed maturity securities available for sale, allowances for credit losses | $ 0 | $ 1.2 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect of adoption | $ (20.4) | $ (20.4) | |||
A- or Better Rating | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total percentage of recoverables subject to allowance | 92.00% | 51.00% | |||
BBB or BB Rating | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total percentage of recoverables subject to allowance | 1.00% | 35.00% | |||
Not rated | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total percentage of recoverables subject to allowance | 7.00% | 14.00% | |||
Commercial mortgage loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loan valuation allowance increase (decrease) | $ (0.5) | $ 1.2 |
Allowance for Credit Losses (Sc
Allowance for Credit Losses (Schedule of Allowance for Credit Losses, Period Increase (Decrease)) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses, period increase, net | $ (3.5) | $ 7.4 |
Net realized gains (losses) on investments and fair value changes to equity securities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses, period increase, net | (3.1) | 3.8 |
Underwriting, general and administrative expenses | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses, period increase, net | (0.4) | 3.6 |
Ike | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses, period increase, net | (1.4) | 1.4 |
Available-for-sale Securities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses, period increase, net | (1.2) | 1.2 |
Commercial mortgage loans | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Allowance for credit losses, period increase, net | $ (0.5) | $ 1.2 |
Allowance for Credit Losses (Ch
Allowance for Credit Losses (Changes in Reinsurance Receivables Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 24.6 | $ 2.8 |
Current period change for credit losses | (1.5) | 3.3 |
Recoveries | (2.5) | |
Other | (18.1) | 0.3 |
Ending balance | 5 | 24.6 |
Global Lifestyle | ||
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 3.9 | 2.5 |
Current period change for credit losses | (0.3) | 0 |
Recoveries | (2.5) | |
Other | 0 | 0 |
Ending balance | 3.6 | 3.9 |
Global Housing | ||
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 1.4 | 0.3 |
Current period change for credit losses | (0.2) | 0.1 |
Recoveries | 0 | |
Other | (0.3) | 0.3 |
Ending balance | 0.9 | 1.4 |
Corporate and Other | ||
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 19.3 | 0 |
Current period change for credit losses | (1) | 3.2 |
Recoveries | 0 | |
Other | (17.8) | 0 |
Ending balance | $ 0.5 | 19.3 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 20.7 | |
Cumulative Effect, Period of Adoption, Adjustment | Global Lifestyle | ||
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 3.9 | |
Cumulative Effect, Period of Adoption, Adjustment | Global Housing | ||
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | 0.7 | |
Cumulative Effect, Period of Adoption, Adjustment | Corporate and Other | ||
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | ||
Beginning balance | $ 16.1 |
Allowance for Credit Losses (_2
Allowance for Credit Losses (Changes in Premium and Account Receivables Allowance for Credit Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | ||
Beginning balance | $ 13.3 | $ 14.8 |
Current period change for credit losses | (0.7) | 4 |
Recoveries | (0.7) | (1.4) |
Write-offs | (2.2) | (5.6) |
Foreign currency translation | (0.3) | (0.3) |
Ending balance | 9.4 | 13.3 |
Global Lifestyle | ||
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | ||
Beginning balance | 9.1 | 14.2 |
Current period change for credit losses | (0.6) | 0.9 |
Recoveries | (0.1) | (1.4) |
Write-offs | (1.1) | (5.6) |
Foreign currency translation | (0.3) | (0.3) |
Ending balance | 7 | 9.1 |
Global Housing | ||
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | ||
Beginning balance | 3.6 | 0.2 |
Current period change for credit losses | (0.1) | 2.9 |
Recoveries | 0 | 0 |
Write-offs | (1.1) | 0 |
Foreign currency translation | 0 | 0 |
Ending balance | 2.4 | 3.6 |
Corporate and Other | ||
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | ||
Beginning balance | 0.6 | 0.4 |
Current period change for credit losses | 0 | 0.2 |
Recoveries | (0.6) | 0 |
Write-offs | 0 | 0 |
Foreign currency translation | 0 | 0 |
Ending balance | $ 0 | 0.6 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | ||
Beginning balance | 1.8 | |
Cumulative Effect, Period of Adoption, Adjustment | Global Lifestyle | ||
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | ||
Beginning balance | 1.3 | |
Cumulative Effect, Period of Adoption, Adjustment | Global Housing | ||
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | ||
Beginning balance | 0.5 | |
Cumulative Effect, Period of Adoption, Adjustment | Corporate and Other | ||
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | ||
Beginning balance | $ 0 |
Segment Information (Financial
Segment Information (Financial Information by Segment) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of reportable segments | segment | 3 | ||||||||||
Revenues | |||||||||||
Net earned premiums | $ 8,572.1 | $ 8,275.8 | $ 7,958.8 | ||||||||
Fees and other income | 1,172.9 | 1,042.3 | 1,170.1 | ||||||||
Net investment income | 314.4 | 285.6 | 383.2 | ||||||||
Net realized (losses) gains on investments and fair value changes to equity securities | 128.2 | (8.2) | 57 | ||||||||
Total revenues | $ 2,574.9 | $ 2,637.8 | $ 2,542.3 | $ 2,432.6 | $ 2,418.1 | $ 2,376.7 | $ 2,352 | $ 2,448.7 | 10,187.6 | 9,595.5 | 9,569.1 |
Benefits, losses and expenses | |||||||||||
Policyholder benefits | 2,195.7 | 2,264.9 | 2,385.7 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 3,835.8 | 3,591.5 | 3,237.2 | ||||||||
Underwriting, general and administrative expenses | 3,240.6 | 3,047.9 | 3,186.5 | ||||||||
Iké net losses | 0 | 5.9 | 163 | ||||||||
Interest expense | 111.8 | 104.5 | 110.6 | ||||||||
Loss on extinguishment of debt | 20.7 | 0 | 31.4 | ||||||||
Total benefits, losses and expenses | 9,404.6 | 9,014.7 | 9,114.4 | ||||||||
Income from continuing operations before income tax expense | 161.8 | 191.5 | 236.6 | 193.1 | 158.9 | 112.5 | 209.3 | 100.1 | 783 | 580.8 | 454.7 |
Provision (benefit) for income taxes | 169.5 | 60.4 | 148.3 | ||||||||
Net income from continuing operations | 126.7 | 153.6 | 184.7 | 148.5 | 119.1 | 88 | 164.7 | 148.6 | 613.5 | 520.4 | 306.4 |
Net income from discontinued operations | 758.9 | (77.7) | 80.4 | ||||||||
Net income | 1,372.4 | 442.7 | 386.8 | ||||||||
Less: Net income attributable to non-controlling interest | 0 | (0.9) | (4.2) | ||||||||
Net income attributable to stockholders | 1,372.4 | 441.8 | 382.6 | ||||||||
Less: Preferred stock dividends | (4.7) | (18.7) | (18.7) | ||||||||
Net income (loss) attributable to common stockholders, basic | 123.6 | $ 882.4 | $ 203.4 | $ 158.3 | 134.5 | $ (34.9) | $ 173.5 | $ 150 | 1,367.7 | 423.1 | 363.9 |
Total assets held for sale | 33,911.5 | 44,649.9 | 33,911.5 | 44,649.9 | |||||||
Global Lifestyle | |||||||||||
Revenues | |||||||||||
Net earned premiums | 6,720.3 | 6,442.2 | 6,073.7 | ||||||||
Fees and other income | 1,027.4 | 895.4 | 1,020.5 | ||||||||
Net investment income | 201.3 | 194.3 | 250.8 | ||||||||
Net realized (losses) gains on investments and fair value changes to equity securities | 0 | 0 | 0 | ||||||||
Total revenues | 7,949 | 7,531.9 | 7,345 | ||||||||
Benefits, losses and expenses | |||||||||||
Policyholder benefits | 1,333.1 | 1,412.6 | 1,516.2 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 3,602.2 | 3,365.9 | 3,015.7 | ||||||||
Underwriting, general and administrative expenses | 2,398.5 | 2,189.1 | 2,277.6 | ||||||||
Iké net losses | 0 | 0 | |||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Total benefits, losses and expenses | 7,333.8 | 6,967.6 | 6,809.5 | ||||||||
Income from continuing operations before income tax expense | 615.2 | 564.3 | 535.5 | ||||||||
Provision (benefit) for income taxes | 130.5 | 127.1 | 126.2 | ||||||||
Net income from continuing operations | 484.7 | 437.2 | 409.3 | ||||||||
Total assets held for sale | 26,210 | 24,360.8 | 26,210 | 24,360.8 | |||||||
Global Housing | |||||||||||
Revenues | |||||||||||
Net earned premiums | 1,851.8 | 1,833.6 | 1,885.1 | ||||||||
Fees and other income | 144.8 | 143.7 | 148.6 | ||||||||
Net investment income | 81 | 72.8 | 95.2 | ||||||||
Net realized (losses) gains on investments and fair value changes to equity securities | 0 | 0 | 0 | ||||||||
Total revenues | 2,077.6 | 2,050.1 | 2,128.9 | ||||||||
Benefits, losses and expenses | |||||||||||
Policyholder benefits | 862.6 | 852.1 | 869.5 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 233.6 | 225.6 | 221.5 | ||||||||
Underwriting, general and administrative expenses | 671.4 | 677.3 | 711.6 | ||||||||
Iké net losses | 0 | 0 | |||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Loss on extinguishment of debt | 0 | 0 | |||||||||
Total benefits, losses and expenses | 1,767.6 | 1,755 | 1,802.6 | ||||||||
Income from continuing operations before income tax expense | 310 | 295.1 | 326.3 | ||||||||
Provision (benefit) for income taxes | 65.4 | 61.3 | 67.6 | ||||||||
Net income from continuing operations | 244.6 | 233.8 | 258.7 | ||||||||
Total assets held for sale | 4,131.2 | 4,014.3 | 4,131.2 | 4,014.3 | |||||||
Corporate and Other | |||||||||||
Revenues | |||||||||||
Net earned premiums | 0 | 0 | 0 | ||||||||
Fees and other income | 0.7 | 3.2 | 1 | ||||||||
Net investment income | 32.1 | 18.5 | 37.2 | ||||||||
Net realized (losses) gains on investments and fair value changes to equity securities | 128.2 | (8.2) | 57 | ||||||||
Total revenues | 161 | 13.5 | 95.2 | ||||||||
Benefits, losses and expenses | |||||||||||
Policyholder benefits | 0 | 0.2 | 0 | ||||||||
Amortization of deferred acquisition costs and value of business acquired | 0 | 0 | 0 | ||||||||
Underwriting, general and administrative expenses | 170.7 | 181.5 | 197.3 | ||||||||
Iké net losses | 5.9 | 163 | |||||||||
Interest expense | 111.8 | 104.5 | 110.6 | ||||||||
Loss on extinguishment of debt | (20.7) | 31.4 | |||||||||
Total benefits, losses and expenses | 303.2 | 292.1 | 502.3 | ||||||||
Income from continuing operations before income tax expense | (142.2) | (278.6) | (407.1) | ||||||||
Provision (benefit) for income taxes | (26.4) | (128) | (45.5) | ||||||||
Net income from continuing operations | (115.8) | (150.6) | $ (361.6) | ||||||||
Total assets held for sale | $ 3,570.3 | $ 16,274.8 | $ 3,570.3 | $ 16,274.8 |
Segment Information (Summary of
Segment Information (Summary of Financial Information by Geographic Location) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 2,574.9 | $ 2,637.8 | $ 2,542.3 | $ 2,432.6 | $ 2,418.1 | $ 2,376.7 | $ 2,352 | $ 2,448.7 | $ 10,187.6 | $ 9,595.5 | $ 9,569.1 |
Long-lived Assets | 561.4 | 446.1 | 561.4 | 446.1 | 390.7 | ||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 8,323.2 | 7,633.2 | 7,464.7 | ||||||||
Long-lived Assets | 530.6 | 422.9 | 530.6 | 422.9 | 348.2 | ||||||
Foreign countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,864.4 | 1,962.3 | 2,104.4 | ||||||||
Long-lived Assets | $ 30.8 | $ 23.2 | $ 30.8 | $ 23.2 | $ 42.5 |
Segment Information (Summary _2
Segment Information (Summary of Net Earned Premiums by Segment and Product) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Global Lifestyle | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Net earned premiums, fees, and other income | $ 7,747.7 | $ 7,337.6 | $ 7,094.2 |
Global Lifestyle | Connected Living | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Net earned premiums, fees, and other income | 3,915.8 | 3,836.6 | 3,768.4 |
Global Lifestyle | Global Automotive | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Net earned premiums, fees, and other income | 3,436.9 | 3,113 | 2,873.6 |
Global Lifestyle | Global Financial Services and Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Net earned premiums, fees, and other income | 395 | 388 | 452.2 |
Global Housing | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Net earned premiums, fees, and other income | 1,996.6 | 1,977.3 | 2,033.7 |
Global Housing | Lender-placed Insurance | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Net earned premiums, fees, and other income | 1,065.9 | 1,052.5 | 1,109.2 |
Global Housing | Multifamily Housing | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Net earned premiums, fees, and other income | 482.3 | 451.6 | 429.2 |
Global Housing | Specialty and Other | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Net earned premiums, fees, and other income | $ 448.4 | $ 473.2 | $ 495.3 |
Contract Revenues (Details)
Contract Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Receivables from contract with customers | $ 313.7 | $ 257.9 | |
Unearned revenues from contract with customers | 191.5 | 89.8 | |
Upfront costs in connection with client contracts | 719.2 | 696.2 | |
Service Contracts And Sales | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contract with customer, liability, unearned revenue | 75.5 | $ 43.3 | |
Upfront costs in connection with client contracts | 93 | 13.8 | |
Global Lifestyle | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Disaggregated fee revenues | 1,010 | 714.1 | 852.8 |
Global Housing | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Disaggregated fee revenues | $ 94.3 | $ 95.6 | $ 104.1 |
Investments (Amortized Cost, Al
Investments (Amortized Cost, Allowance for Credit Losses, Gross Unrealized Gains and Losses, and Fair Value) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | $ 6,903.9 | |
Fixed maturity securities available for sale, allowances for credit losses | 0 | $ (1.2) |
Fixed maturity securities available for sale, at fair value | 7,215.3 | 6,815.5 |
Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 6,903.9 | 6,245.8 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | (1.2) |
Fixed maturity securities available for sale, gross unrealized gains | 346.6 | 578.2 |
Fixed maturity securities available for sale, unrealized losses | (35.2) | (7.3) |
Fixed maturity securities available for sale, at fair value | 7,215.3 | 6,815.5 |
Fixed Maturities | U.S. government and government agencies and authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 83 | 90.4 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities available for sale, gross unrealized gains | 2.1 | 3.7 |
Fixed maturity securities available for sale, unrealized losses | (0.1) | 0 |
Fixed maturity securities available for sale, at fair value | 85 | 94.1 |
Fixed Maturities | States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 142.2 | 164.4 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities available for sale, gross unrealized gains | 7 | 11 |
Fixed maturity securities available for sale, unrealized losses | (0.7) | (0.1) |
Fixed maturity securities available for sale, at fair value | 148.5 | 175.3 |
Fixed Maturities | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 436 | 442.4 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities available for sale, gross unrealized gains | 5.9 | 27.4 |
Fixed maturity securities available for sale, unrealized losses | (4.2) | (0.1) |
Fixed maturity securities available for sale, at fair value | 437.7 | 469.7 |
Fixed Maturities | Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 411.1 | 251.9 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities available for sale, gross unrealized gains | 14.2 | 9.4 |
Fixed maturity securities available for sale, unrealized losses | (2.3) | (0.8) |
Fixed maturity securities available for sale, at fair value | 423 | 260.5 |
Fixed Maturities | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 466.7 | 266.3 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities available for sale, gross unrealized gains | 10.3 | 16.5 |
Fixed maturity securities available for sale, unrealized losses | (3.3) | (1.4) |
Fixed maturity securities available for sale, at fair value | 473.7 | 281.4 |
Fixed Maturities | Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 578.4 | 685.8 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities available for sale, gross unrealized gains | 25.2 | 49 |
Fixed maturity securities available for sale, unrealized losses | (1.7) | (0.2) |
Fixed maturity securities available for sale, at fair value | 601.9 | 734.6 |
Fixed Maturities | U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 3,581.2 | 3,315.6 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | (1.2) |
Fixed maturity securities available for sale, gross unrealized gains | 235.9 | 380.6 |
Fixed maturity securities available for sale, unrealized losses | (14) | (4.4) |
Fixed maturity securities available for sale, at fair value | 3,803.1 | 3,690.6 |
Fixed Maturities | Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 1,205.3 | 1,029 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities available for sale, gross unrealized gains | 46 | 80.6 |
Fixed maturity securities available for sale, unrealized losses | (8.9) | (0.3) |
Fixed maturity securities available for sale, at fair value | $ 1,242.4 | $ 1,109.3 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($) | |
Schedule of Investments [Line Items] | |||
Non-income producing material investments | $ 0 | $ 0 | $ 0 |
Securities traded continuously at a price below book value, months | 6 months | ||
Percentage of securities representing gross unrealized losses | 2.00% | 2.00% | |
Percentage of gross unrealized losses in a continuous loss position less than twelve months | 94.00% | 60.00% | |
Individual securities comprising total gross unrealized losses (in shares) | security | 1,202 | 180 | |
Approximate percentage, outstanding principal balance of commercial mortgage loans | 38.00% | ||
Mortgage loan commitments outstanding | $ 14.1 | ||
Short term investments and fixed maturities | 537.4 | $ 587.3 | |
Minimum | |||
Schedule of Investments [Line Items] | |||
Outstanding balance of commercial mortgage loans | 0.1 | 0.1 | |
Maximum | |||
Schedule of Investments [Line Items] | |||
Outstanding balance of commercial mortgage loans | 9.6 | 9.9 | |
Not Designated as Hedging Instrument | |||
Schedule of Investments [Line Items] | |||
Amounts related to derivative assets | 1.9 | 0.4 | |
Amounts related to derivative liabilities | 0.3 | 0.7 | |
Derivative gains (losses) recorded to income statement | $ 1.3 | $ 6.6 | $ (89.4) |
Investments (Amortized Cost and
Investments (Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Due in one year or less, cost or amortized cost | $ 376.9 | |
Due after one year through five years, cost or amortized cost | 2,117.3 | |
Due after five years through ten years, cost or amortized cost | 1,892.8 | |
Due after ten years, cost or amortized cost | 1,060.7 | |
Total, cost or amortized cost | 5,447.7 | |
Fixed maturity securities available for sale, amortized cost | 6,903.9 | |
Due in one year or less, fair value | 381.1 | |
Due after one year through five years, fair value | 2,200.7 | |
Due after five years through ten years, fair value | 1,988.5 | |
Due after ten years, fair value | 1,146.4 | |
Total, fair value | 5,716.7 | |
Fixed maturity securities, fair value | 7,215.3 | $ 6,815.5 |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or amortized cost | 466.7 | |
Fair Value | 473.7 | |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or amortized cost | 578.4 | |
Fair Value | 601.9 | |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or amortized cost | 411.1 | |
Fair Value | $ 423 |
Investments (Categories of Net
Investments (Categories of Net Investment Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total investment income | $ 328.2 | $ 343 | $ 473.6 |
Investment expenses | (13.8) | (20.5) | (20.3) |
Net investment income | 314.4 | 285.6 | 383.2 |
Fixed maturity securities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total investment income | 232.8 | 228.4 | 241.2 |
Equity securities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total investment income | 14.9 | 14.5 | 14.9 |
Commercial mortgage loans on real estate | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total investment income | 8.9 | 8.2 | 8.3 |
Short-term investments | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total investment income | 2.1 | 5.7 | 10.8 |
Other investments | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total investment income | 61 | 16.6 | 41.4 |
Cash and cash equivalents | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total investment income | 8.5 | 13.3 | 37.8 |
Consolidated investment entities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Revenues from consolidated investment entities | 0 | 56.3 | 119.2 |
Expenses from consolidated investment entities | 0 | (36.9) | (70.1) |
Consolidated investment entities | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Net investment income | 0 | 19.4 | 49.1 |
Consolidated investment entities | Real estate fund | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Net investment income | 0 | 8.3 | 25.1 |
Consolidated investment entities | CLO | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Net investment income | 0 | 8 | 17 |
Consolidated investment entities | Investment management fees | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Net investment income | $ 0 | 3.1 | 7 |
Non-controlling Interest | Consolidated investment entities | Real estate fund | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Net investment income | $ 1.1 | $ 3.8 |
Investments (Proceeds From Sale
Investments (Proceeds From Sales of Available-For-Sale Securities and the Gross Realized Gains and Gross Realized Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 1,361.8 | $ 515.4 | $ 1,729.1 |
Gross realized gains | 31.9 | 19.6 | 24.3 |
Gross realized losses | (14.8) | (6.8) | (8.2) |
Net realized gains (losses) on investments from sales of fixed maturity securities | $ 17.1 | $ 12.8 | $ 16.1 |
Investments (Net Realized Gains
Investments (Net Realized Gains (Losses) on Investments and Fair Value Change to Equity Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other: | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other | $ 128 | $ 11.5 | $ 59.1 |
Equity securities at fair value | 445.7 | 290.2 | |
Net realized gains (losses) related to impairments: | |||
Investment impairment losses included in net realized gains (losses) | 0.2 | (19.7) | (2.1) |
Net realized gains (losses) related to impairment, other investments | (1) | (17.1) | (1.5) |
Total net realized gains (losses) on investments and fair value changes to equity securities | 128.2 | (8.2) | 57 |
Equity securities, realized gain | 24.3 | 10.5 | 13.4 |
Equity securities, annual impairment loss | 1 | 17.1 | 1.5 |
Equity securities, carry value adjustment upwards | 43 | 35.1 | 24.6 |
Equity securities, carry value adjustment downwards | 0.8 | 0 | 0 |
Cumulative impairment of equity investment | 14.9 | 18.6 | 1.5 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 1.2 | |
Four Equity Positions That Went Public | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other: | |||
Equity securities, unrealized gain | 85.4 | ||
Equity securities at fair value | 133.7 | ||
Fixed maturity securities | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other: | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other | 17.2 | 12.7 | 16.4 |
Net realized gains (losses) related to impairments: | |||
Investment impairment losses included in net realized gains (losses) | 1.2 | (2.6) | (0.6) |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 1.2 | |
Equity securities | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other: | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other | 108.3 | 21.6 | 37.5 |
Net realized gains (losses) related to impairments: | |||
Equity investment holdings accounted for under the measurement alternative | 103.7 | 98.7 | |
Commercial mortgage loans on real estate | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other: | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other | 0.5 | (1.2) | 0 |
Other investments | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other: | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other | 2 | 10.7 | 15 |
Net realized gains (losses) related to impairments: | |||
Net realized gains (losses) related to impairment, other investments | (1) | (17.1) | (1.5) |
Equity securities, annual impairment loss | 1 | 17.1 | 1.5 |
Other investments | Four Equity Positions That Went Public | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other: | |||
Equity securities at fair value | 48.1 | ||
Consolidated investment entities | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other: | |||
Net realized gains (losses) on investments and fair value changes to equity securities related to sales and other | $ 0 | $ (32.3) | $ (9.8) |
Investments (Fair Value Changes
Investments (Fair Value Changes to Equity Securities) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Net gains (losses) recognized on equity securities | $ 108.3 | $ 21.6 | $ 37.4 |
Less: Net realized gains (losses) related to sales of equity securities | (4.1) | 6.6 | (1.1) |
Total fair value changes to equity securities held | $ 112.4 | $ 15 | $ 38.5 |
Investments (Category and Durat
Investments (Category and Duration of Gross Unrealized Losses on Fixed Maturity Securities and Equity Securities) (Details) - Fixed Maturities - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 months, Fair Value | $ 2,003.9 | $ 243 |
Fixed maturity securities, less than 12 months, unrealized losses | (33.1) | (4.4) |
Fixed maturity securities, 12 months or more, Fair value | 47.7 | 56 |
Fixed maturity securities, 12 months or more, unrealized losses | (2.1) | (2.9) |
Fixed maturity securities, Total, Fair Value | 2,051.6 | 299 |
Fixed maturity securities, Unrealized Losses | (35.2) | (7.3) |
U.S. government and government agencies and authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 months, Fair Value | 31.5 | |
Fixed maturity securities, less than 12 months, unrealized losses | (0.1) | |
Fixed maturity securities, 12 months or more, Fair value | 0 | |
Fixed maturity securities, 12 months or more, unrealized losses | 0 | |
Fixed maturity securities, Total, Fair Value | 31.5 | |
Fixed maturity securities, Unrealized Losses | (0.1) | |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 months, Fair Value | 48.1 | 6.1 |
Fixed maturity securities, less than 12 months, unrealized losses | (0.7) | (0.1) |
Fixed maturity securities, 12 months or more, Fair value | 0 | 0 |
Fixed maturity securities, 12 months or more, unrealized losses | 0 | 0 |
Fixed maturity securities, Total, Fair Value | 48.1 | 6.1 |
Fixed maturity securities, Unrealized Losses | (0.7) | (0.1) |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 months, Fair Value | 216 | 28.3 |
Fixed maturity securities, less than 12 months, unrealized losses | (4.1) | (0.1) |
Fixed maturity securities, 12 months or more, Fair value | 4 | 0 |
Fixed maturity securities, 12 months or more, unrealized losses | (0.1) | 0 |
Fixed maturity securities, Total, Fair Value | 220 | 28.3 |
Fixed maturity securities, Unrealized Losses | (4.2) | (0.1) |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 months, Fair Value | 257.7 | 54.5 |
Fixed maturity securities, less than 12 months, unrealized losses | (2.1) | (0.2) |
Fixed maturity securities, 12 months or more, Fair value | 9.8 | 37.4 |
Fixed maturity securities, 12 months or more, unrealized losses | (0.2) | (0.6) |
Fixed maturity securities, Total, Fair Value | 267.5 | 91.9 |
Fixed maturity securities, Unrealized Losses | (2.3) | (0.8) |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 months, Fair Value | 274.8 | 28.2 |
Fixed maturity securities, less than 12 months, unrealized losses | (2.9) | (0.7) |
Fixed maturity securities, 12 months or more, Fair value | 2 | 3.3 |
Fixed maturity securities, 12 months or more, unrealized losses | (0.4) | (0.7) |
Fixed maturity securities, Total, Fair Value | 276.8 | 31.5 |
Fixed maturity securities, Unrealized Losses | (3.3) | (1.4) |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 months, Fair Value | 94 | 23.9 |
Fixed maturity securities, less than 12 months, unrealized losses | (1.5) | (0.1) |
Fixed maturity securities, 12 months or more, Fair value | 10 | 1.5 |
Fixed maturity securities, 12 months or more, unrealized losses | (0.2) | (0.1) |
Fixed maturity securities, Total, Fair Value | 104 | 25.4 |
Fixed maturity securities, Unrealized Losses | (1.7) | (0.2) |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 months, Fair Value | 687.8 | 71.9 |
Fixed maturity securities, less than 12 months, unrealized losses | (13.1) | (2.9) |
Fixed maturity securities, 12 months or more, Fair value | 15.2 | 13.8 |
Fixed maturity securities, 12 months or more, unrealized losses | (0.9) | (1.5) |
Fixed maturity securities, Total, Fair Value | 703 | 85.7 |
Fixed maturity securities, Unrealized Losses | (14) | (4.4) |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 months, Fair Value | 394 | 30.1 |
Fixed maturity securities, less than 12 months, unrealized losses | (8.6) | (0.3) |
Fixed maturity securities, 12 months or more, Fair value | 6.7 | 0 |
Fixed maturity securities, 12 months or more, unrealized losses | (0.3) | 0 |
Fixed maturity securities, Total, Fair Value | 400.7 | 30.1 |
Fixed maturity securities, Unrealized Losses | $ (8.9) | $ (0.3) |
Investments (Amortized Cost a_2
Investments (Amortized Cost and Fair Value of Fixed Maturity Securities in an Unrealized Loss Position by Contractual Maturity) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Due in one year or less, cost or amortized cost, net of allowance | $ 15.3 |
Due after one year through five years, cost or amortized cost, net of allowance | 443.2 |
Due after five year through ten years, cost or amortized cost, net of allowance | 602.9 |
Due after ten years, cost or amortized cost, net of allowance | 369.8 |
Total single maturity date, cost or amortized cost, net of allowance | 1,431.2 |
Total, cost or amortized cost, net of allowance | 2,086.8 |
Due in one year or less, fair value | 15.1 |
Due after one year through five years, fair value | 436.6 |
Due after five years through ten years, fair value | 591.3 |
Due after ten years, fair value | 360.3 |
Total single maturity date, fair value | 1,403.3 |
Total, fair value | 2,051.6 |
Asset-backed | |
Debt Securities, Available-for-sale [Line Items] | |
Cost or amortized cost, net of allowance | 269.8 |
Fair value | 267.5 |
Commercial mortgage-backed | |
Debt Securities, Available-for-sale [Line Items] | |
Cost or amortized cost, net of allowance | 280.1 |
Fair value | 276.8 |
Residential mortgage-backed | |
Debt Securities, Available-for-sale [Line Items] | |
Cost or amortized cost, net of allowance | 105.7 |
Fair value | $ 104 |
Investments - Credit Quality In
Investments - Credit Quality Indicators (Details) - Commercial Portfolio Segment $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Greater than 2.0 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, originated current year | $ 59.3 | $ 5.5 |
Financing receivable, originated year one | 5.6 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 4.1 |
Financing receivable, originated year four | 0 | 26.4 |
Prior | 70.5 | 53.3 |
Outstanding balance of commercial mortgage loans | $ 135.4 | $ 89.3 |
% of Total | 0.526 | 0.639 |
1.5 to 2.0 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, originated current year | $ 34.1 | $ 0 |
Financing receivable, originated year one | 0 | 0 |
Financing receivable, originated year two | 0 | 4.8 |
Financing receivable, originated year three | 4.7 | 0 |
Financing receivable, originated year four | 4 | 2.6 |
Prior | 17.5 | 17.5 |
Outstanding balance of commercial mortgage loans | $ 60.3 | $ 24.9 |
% of Total | 0.234 | 0.178 |
1.0 to 1.5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, originated current year | $ 40.1 | $ 0 |
Financing receivable, originated year one | 0 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 0 |
Financing receivable, originated year four | 0 | 0 |
Prior | 9.9 | 15 |
Outstanding balance of commercial mortgage loans | $ 50 | $ 15 |
% of Total | 0.194 | 0.107 |
Less than 1.0 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, originated current year | $ 0 | $ 0 |
Financing receivable, originated year one | 0 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 6 |
Financing receivable, originated year four | 5.8 | 0 |
Prior | 6.1 | 4.7 |
Outstanding balance of commercial mortgage loans | $ 11.9 | $ 10.7 |
% of Total | 0.046 | 0.076 |
Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, originated current year | $ 133.5 | $ 5.5 |
Financing receivable, originated year one | 5.6 | 0 |
Financing receivable, originated year two | 0 | 4.8 |
Financing receivable, originated year three | 4.7 | 10.1 |
Financing receivable, originated year four | 9.8 | 29 |
Prior | 104 | 90.5 |
Outstanding balance of commercial mortgage loans | $ 257.6 | $ 139.9 |
% of Total | 1 | 1 |
70% and less | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, originated current year | $ 71.7 | $ 2.9 |
Financing receivable, originated year one | 5.6 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 4.1 |
Financing receivable, originated year four | 4 | 29 |
Prior | 99.8 | 87.1 |
Outstanding balance of commercial mortgage loans | $ 181.1 | $ 123.1 |
% of Total | 0.703 | 0.880 |
71% to 80% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, originated current year | $ 61.8 | $ 2.6 |
Financing receivable, originated year one | 0 | 0 |
Financing receivable, originated year two | 0 | 4.8 |
Financing receivable, originated year three | 4.7 | 0 |
Financing receivable, originated year four | 0 | 0 |
Prior | 1 | 0 |
Outstanding balance of commercial mortgage loans | $ 67.5 | $ 7.4 |
% of Total | 0.262 | 0.053 |
81% to 95% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, originated current year | $ 0 | $ 0 |
Financing receivable, originated year one | 0 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 0 |
Financing receivable, originated year four | 0 | 0 |
Prior | 1.1 | 2.2 |
Outstanding balance of commercial mortgage loans | $ 1.1 | $ 2.2 |
% of Total | 0.004 | 0.016 |
Greater than 95% | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, originated current year | $ 0 | $ 0 |
Financing receivable, originated year one | 0 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 6 |
Financing receivable, originated year four | 5.8 | 0 |
Prior | 2.1 | 1.2 |
Outstanding balance of commercial mortgage loans | $ 7.9 | $ 7.2 |
% of Total | 0.031 | 0.051 |
Total | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, originated current year | $ 133.5 | $ 5.5 |
Financing receivable, originated year one | 5.6 | 0 |
Financing receivable, originated year two | 0 | 4.8 |
Financing receivable, originated year three | 4.7 | 10.1 |
Financing receivable, originated year four | 9.8 | 29 |
Prior | 104 | 90.5 |
Outstanding balance of commercial mortgage loans | $ 257.6 | $ 139.9 |
% of Total | 1 | 1 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entities [Abstract] | ||
Maximum exposure to loss related to VIEs | $ 249.3 | $ 253.9 |
Unfunded commitments | $ 38.8 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value for Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Special Purpose Acquisition Company Mergers | ||
Financial Liabilities | ||
Acquired common stock in a merger | $ 133.7 | |
Common stocks | Level 3 | ||
Financial Assets | ||
Financial assets | 133.7 | |
Recurring | ||
Financial Assets | ||
Financial assets | 9,198.2 | $ 9,170.5 |
Financial Liabilities | ||
Other liabilities | 76.4 | 76.1 |
Liabilities related to separate accounts | 11.8 | 11.4 |
Total financial liabilities | 88.2 | 87.5 |
Recurring | Level 1 | ||
Financial Assets | ||
Financial assets | 1,519.9 | 1,874.3 |
Financial Liabilities | ||
Other liabilities | 72.4 | 72.9 |
Liabilities related to separate accounts | 7.7 | 6.7 |
Total financial liabilities | 80.1 | 79.6 |
Recurring | Level 2 | ||
Financial Assets | ||
Financial assets | 7,536.2 | 7,268.8 |
Financial Liabilities | ||
Other liabilities | 0 | 0.5 |
Liabilities related to separate accounts | 4.1 | 4.7 |
Total financial liabilities | 4.1 | 5.2 |
Recurring | Level 3 | ||
Financial Assets | ||
Financial assets | 142.1 | 27.4 |
Financial Liabilities | ||
Other liabilities | 4 | 2.7 |
Liabilities related to separate accounts | 0 | 0 |
Total financial liabilities | 4 | 2.7 |
Recurring | U.S. government and government agencies and authorities | ||
Financial Assets | ||
Financial assets | 85 | 94.1 |
Recurring | U.S. government and government agencies and authorities | Level 1 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | U.S. government and government agencies and authorities | Level 2 | ||
Financial Assets | ||
Financial assets | 85 | 94.1 |
Recurring | U.S. government and government agencies and authorities | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | States, municipalities and political subdivisions | ||
Financial Assets | ||
Financial assets | 148.5 | 175.3 |
Recurring | States, municipalities and political subdivisions | Level 1 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | States, municipalities and political subdivisions | Level 2 | ||
Financial Assets | ||
Financial assets | 148.5 | 175.3 |
Recurring | States, municipalities and political subdivisions | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Foreign governments | ||
Financial Assets | ||
Financial assets | 437.7 | 469.7 |
Recurring | Foreign governments | Level 1 | ||
Financial Assets | ||
Financial assets | 0 | 0.5 |
Recurring | Foreign governments | Level 2 | ||
Financial Assets | ||
Financial assets | 437.7 | 468.8 |
Recurring | Foreign governments | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | 0.4 |
Recurring | Asset-backed | ||
Financial Assets | ||
Financial assets | 423 | 260.5 |
Recurring | Asset-backed | Level 1 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Asset-backed | Level 2 | ||
Financial Assets | ||
Financial assets | 423 | 260.5 |
Recurring | Asset-backed | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Commercial mortgage-backed | ||
Financial Assets | ||
Financial assets | 473.7 | 281.4 |
Recurring | Commercial mortgage-backed | Level 1 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Commercial mortgage-backed | Level 2 | ||
Financial Assets | ||
Financial assets | 473.7 | 272.7 |
Recurring | Commercial mortgage-backed | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | 8.7 |
Recurring | Residential mortgage-backed | ||
Financial Assets | ||
Financial assets | 601.9 | 734.6 |
Recurring | Residential mortgage-backed | Level 1 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Residential mortgage-backed | Level 2 | ||
Financial Assets | ||
Financial assets | 601.9 | 734.6 |
Recurring | Residential mortgage-backed | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | U.S. corporate | ||
Financial Assets | ||
Financial assets | 3,803.1 | 3,690.6 |
Recurring | U.S. corporate | Level 1 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | U.S. corporate | Level 2 | ||
Financial Assets | ||
Financial assets | 3,799.7 | 3,678.6 |
Recurring | U.S. corporate | Level 3 | ||
Financial Assets | ||
Financial assets | 3.4 | 12 |
Recurring | Foreign corporate | ||
Financial Assets | ||
Financial assets | 1,242.4 | 1,109.3 |
Recurring | Foreign corporate | Level 1 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Foreign corporate | Level 2 | ||
Financial Assets | ||
Financial assets | 1,238.8 | 1,105.4 |
Recurring | Foreign corporate | Level 3 | ||
Financial Assets | ||
Financial assets | 3.6 | 3.9 |
Recurring | Mutual funds | ||
Financial Assets | ||
Financial assets | 33.3 | 42.3 |
Recurring | Mutual funds | Level 1 | ||
Financial Assets | ||
Financial assets | 33.3 | 42.3 |
Recurring | Mutual funds | Level 2 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Mutual funds | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Common stocks | ||
Financial Assets | ||
Financial assets | 151.1 | 15.2 |
Recurring | Common stocks | Level 1 | ||
Financial Assets | ||
Financial assets | 15.5 | 13.3 |
Recurring | Common stocks | Level 2 | ||
Financial Assets | ||
Financial assets | 0.7 | 0.7 |
Recurring | Common stocks | Level 3 | ||
Financial Assets | ||
Financial assets | 134.9 | 1.2 |
Recurring | Non-redeemable preferred stocks | ||
Financial Assets | ||
Financial assets | 261.3 | 232.7 |
Recurring | Non-redeemable preferred stocks | Level 1 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Non-redeemable preferred stocks | Level 2 | ||
Financial Assets | ||
Financial assets | 261.3 | 231.6 |
Recurring | Non-redeemable preferred stocks | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | 1.1 |
Recurring | Short-term investments | ||
Financial Assets | ||
Financial assets | 207.2 | 253.5 |
Recurring | Short-term investments | Level 1 | ||
Financial Assets | ||
Financial assets | 200.1 | 202 |
Recurring | Short-term investments | Level 2 | ||
Financial Assets | ||
Financial assets | 7.1 | 51.5 |
Recurring | Short-term investments | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Other investments | ||
Financial Assets | ||
Financial assets | 72.6 | 241.3 |
Recurring | Other investments | Level 1 | ||
Financial Assets | ||
Financial assets | 72.4 | 72.9 |
Recurring | Other investments | Level 2 | ||
Financial Assets | ||
Financial assets | 0 | 168.3 |
Recurring | Other investments | Level 3 | ||
Financial Assets | ||
Financial assets | 0.2 | 0.1 |
Recurring | Cash equivalents | ||
Financial Assets | ||
Financial assets | 1,243.9 | 1,558.6 |
Recurring | Cash equivalents | Level 1 | ||
Financial Assets | ||
Financial assets | 1,190.9 | 1,536.6 |
Recurring | Cash equivalents | Level 2 | ||
Financial Assets | ||
Financial assets | 53 | 22 |
Recurring | Cash equivalents | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | 0 |
Recurring | Other assets | ||
Financial Assets | ||
Financial assets | 1.7 | |
Recurring | Other assets | Level 1 | ||
Financial Assets | ||
Financial assets | 0 | |
Recurring | Other assets | Level 2 | ||
Financial Assets | ||
Financial assets | 1.7 | |
Recurring | Other assets | Level 3 | ||
Financial Assets | ||
Financial assets | 0 | |
Recurring | Assets held in separate accounts | ||
Financial Assets | ||
Financial assets | 11.8 | 11.4 |
Recurring | Assets held in separate accounts | Level 1 | ||
Financial Assets | ||
Financial assets | 7.7 | 6.7 |
Recurring | Assets held in separate accounts | Level 2 | ||
Financial Assets | ||
Financial assets | 4.1 | 4.7 |
Recurring | Assets held in separate accounts | Level 3 | ||
Financial Assets | ||
Financial assets | $ 0 | $ 0 |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)transactioninvestment | Dec. 31, 2020USD ($)investmenttransaction | Dec. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Upward valuation adjustments | $ 24.3 | $ 10.5 | $ 13.4 |
Equity securities, annual impairment loss | $ 1 | $ 17.1 | $ 1.5 |
Four Market Observable Transactions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of market observable transactions | transaction | 4 | ||
Number of investments | investment | 4 | ||
One Market Observable Transaction | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of market observable transactions | transaction | 1 | ||
Two Market Observable Transactions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of market observable transactions | transaction | 2 | ||
Number of investments | investment | 1 | ||
Level 3 | Fixed Maturity and Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Level 3 securities, fair value | $ 141.9 | $ 27.3 | |
Level 3 | Common stocks | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Level 3 securities, fair value | 133.7 | ||
Level 3 | Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investment, fair value, nonrecurring | 41.8 | 14.1 | |
Level 3 | Nonrecurring | Four Market Observable Transactions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Upward valuation adjustments | 25.1 | ||
Level 3 | Nonrecurring | One Market Observable Transaction | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Downward valuation adjustment | $ 0.8 | ||
Level 3 | Nonrecurring | Two Market Observable Transactions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Upward valuation adjustments | $ 10.5 |
Fair Value Disclosures (Change
Fair Value Disclosures (Change in Balance Sheet Carrying Value Associated With Level 3 Financial Assets Carried at Fair Value) (Details) - Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets (Liabilities) Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period, net | $ 24.7 | $ 22.4 |
Total gains (losses) (realized/unrealized) included in earnings, net | 82.7 | 13.8 |
Net unrealized gains (losses) included in other comprehensive income | (0.3) | (1) |
Purchases, net | 3.2 | 26.4 |
Sales, net | (3.6) | (23.9) |
Transfers into Level 3, net | 52.6 | 11.2 |
Transfers out of Level 3, net | (21.2) | (24.2) |
Balance, end of period, net | 138.1 | 24.7 |
Other liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period, liabilities | (2.7) | (0.2) |
Total gains (losses) (realized/unrealized) included in earnings, liabilities | (1.3) | (0.4) |
Net unrealized gains (losses) included in other comprehensive income, liabilities | 0 | 0 |
Purchases, liabilities | 0 | (2.5) |
Sales, liabilities | 0 | 0 |
Transfers into Level 3, liabilities | 0 | 0.2 |
Transfers out of Level 3, liabilities | 0 | 0.2 |
Balance, end of period, liabilities | (4) | (2.7) |
Foreign governments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 0.4 | 0 |
Total gains (losses) (realized/unrealized) included in earnings, assets | 0 | 0 |
Net unrealized gains (losses) included in other comprehensive income, assets | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers in, assets | 0 | 0.4 |
Transfers out, assets | (0.4) | 0 |
Balance, end of period | 0 | 0.4 |
Asset-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 0 | |
Total gains (losses) (realized/unrealized) included in earnings, assets | 0 | |
Net unrealized gains (losses) included in other comprehensive income, assets | 0 | |
Purchases | 1.5 | |
Sales | 0 | |
Transfers in, assets | 0 | |
Transfers out, assets | (1.5) | |
Balance, end of period | 0 | 0 |
Commercial mortgage-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 8.7 | 11.6 |
Total gains (losses) (realized/unrealized) included in earnings, assets | (1.9) | (2.8) |
Net unrealized gains (losses) included in other comprehensive income, assets | 0.3 | (0.1) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers in, assets | 0 | 0 |
Transfers out, assets | (7.1) | 0 |
Balance, end of period | 0 | 8.7 |
Residential mortgage-backed | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 0 | 0 |
Total gains (losses) (realized/unrealized) included in earnings, assets | 0 | |
Net unrealized gains (losses) included in other comprehensive income, assets | 0.1 | |
Purchases | 13.8 | |
Sales | (1.1) | |
Transfers in, assets | 1.1 | |
Transfers out, assets | (13.9) | |
Balance, end of period | 0 | |
U.S. corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 12 | 1.7 |
Total gains (losses) (realized/unrealized) included in earnings, assets | 0.2 | 0.2 |
Net unrealized gains (losses) included in other comprehensive income, assets | (0.5) | 0.6 |
Purchases | 0.6 | 13.3 |
Sales | (1.2) | (0.4) |
Transfers in, assets | 3.4 | 1.8 |
Transfers out, assets | (11.1) | (5.2) |
Balance, end of period | 3.4 | 12 |
Foreign corporate | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 3.9 | 8.2 |
Total gains (losses) (realized/unrealized) included in earnings, assets | 0 | 0.1 |
Net unrealized gains (losses) included in other comprehensive income, assets | (0.1) | (0.5) |
Purchases | 0 | 0.1 |
Sales | (0.2) | (0.4) |
Transfers in, assets | 1.1 | 0 |
Transfers out, assets | (1.1) | (3.6) |
Balance, end of period | 3.6 | 3.9 |
Common stocks | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 1.2 | 0 |
Total gains (losses) (realized/unrealized) included in earnings, assets | 85.6 | 0 |
Net unrealized gains (losses) included in other comprehensive income, assets | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers in, assets | 48.1 | 1.2 |
Transfers out, assets | 0 | 0 |
Balance, end of period | 134.9 | 1.2 |
Common stocks | Special Purpose Acquisition Company Mergers | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Transfers in, assets | 48.1 | |
Non-redeemable preferred stocks | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 1.1 | 1.1 |
Total gains (losses) (realized/unrealized) included in earnings, assets | 0 | (4) |
Net unrealized gains (losses) included in other comprehensive income, assets | 0 | 0 |
Purchases | 1.1 | 0 |
Sales | (2.2) | 0 |
Transfers in, assets | 0 | 4 |
Transfers out, assets | 0 | 0 |
Balance, end of period | 0 | 1.1 |
Other investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | 0.1 | 0 |
Total gains (losses) (realized/unrealized) included in earnings, assets | 0.1 | 0 |
Net unrealized gains (losses) included in other comprehensive income, assets | 0 | (1.1) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers in, assets | 0 | 2.7 |
Transfers out, assets | 0 | (1.5) |
Balance, end of period | 0.2 | 0.1 |
Other assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance, beginning of period | $ 0 | 0 |
Total gains (losses) (realized/unrealized) included in earnings, assets | 20.7 | |
Net unrealized gains (losses) included in other comprehensive income, assets | 0 | |
Purchases | 1.7 | |
Sales | (22) | |
Transfers in, assets | (0.2) | |
Transfers out, assets | (0.2) | |
Balance, end of period | $ 0 |
Fair Value Disclosures (Carryin
Fair Value Disclosures (Carrying Value and Fair Value of the Financial Instruments That are Not Recognized or are Not Carried at Fair Value) (Details) - Recurring - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Assets | ||
Total financial assets | $ 9,198.2 | $ 9,170.5 |
Level 1 | ||
Financial Assets | ||
Total financial assets | 1,519.9 | 1,874.3 |
Level 2 | ||
Financial Assets | ||
Total financial assets | 7,536.2 | 7,268.8 |
Level 3 | ||
Financial Assets | ||
Total financial assets | 142.1 | 27.4 |
Carrying Value | ||
Financial Assets | ||
Commercial mortgage loans on real estate | 256.5 | 138.3 |
Other investments | 4.2 | 52.1 |
Other assets | 24.9 | 23.3 |
Total financial assets | 285.6 | 213.7 |
Financial Liabilities | ||
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 8.5 | 70.6 |
Funds held under reinsurance | 364.2 | 358.6 |
Debt | 2,202.5 | 2,252.9 |
Total financial liabilities | 2,575.2 | 2,682.1 |
Fair Value | ||
Financial Assets | ||
Commercial mortgage loans on real estate | 266 | 152.3 |
Other investments | 4.2 | 52.1 |
Other assets | 24.9 | 23.3 |
Total financial assets | 295.1 | 227.7 |
Financial Liabilities | ||
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 9.6 | 85.4 |
Funds held under reinsurance | 364.2 | 358.6 |
Debt | 2,456.3 | 2,540 |
Total financial liabilities | 2,830.1 | 2,984 |
Fair Value | Level 1 | ||
Financial Assets | ||
Commercial mortgage loans on real estate | 0 | 0 |
Other investments | 2 | 14.4 |
Other assets | 0 | 0 |
Total financial assets | 2 | 14.4 |
Financial Liabilities | ||
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 0 | 0 |
Funds held under reinsurance | 364.2 | 358.6 |
Debt | 0 | 0 |
Total financial liabilities | 364.2 | 358.6 |
Fair Value | Level 2 | ||
Financial Assets | ||
Commercial mortgage loans on real estate | 0 | 0 |
Other investments | 0 | 0 |
Other assets | 0 | 0 |
Total financial assets | 0 | 0 |
Financial Liabilities | ||
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 0 | 0 |
Funds held under reinsurance | 0 | 0 |
Debt | 2,456.3 | 2,540 |
Total financial liabilities | 2,456.3 | 2,540 |
Fair Value | Level 3 | ||
Financial Assets | ||
Commercial mortgage loans on real estate | 266 | 152.3 |
Other investments | 2.2 | 37.7 |
Other assets | 24.9 | 23.3 |
Total financial assets | 293.1 | 213.3 |
Financial Liabilities | ||
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 9.6 | 85.4 |
Funds held under reinsurance | 0 | 0 |
Debt | 0 | 0 |
Total financial liabilities | $ 9.6 | $ 85.4 |
Premiums and Accounts Receiva_3
Premiums and Accounts Receivable (Schedule of Allowance for Uncollectible Amounts) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Premiums Receivable Disclosure [Abstract] | |||
Insurance premiums receivable | $ 1,878 | $ 1,484.2 | |
Other receivables | 73.9 | 78 | |
Allowance for credit losses | (9.4) | (13.3) | $ (14.8) |
Total | $ 1,942.5 | $ 1,548.9 |
Income Taxes (Information About
Income Taxes (Information About Domestic and Foreign Pre-Tax Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||||||||
Domestic | $ 629.7 | $ 443.1 | $ 414.7 | ||||||||
Foreign | 153.3 | 137.7 | 40 | ||||||||
Income from continuing operations before income tax expense | $ 161.8 | $ 191.5 | $ 236.6 | $ 193.1 | $ 158.9 | $ 112.5 | $ 209.3 | $ 100.1 | $ 783 | $ 580.8 | $ 454.7 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current expense (benefit): | |||
Federal and state | $ 1.7 | $ (180.8) | $ (7.8) |
Foreign | 36.1 | 38.8 | 55.3 |
Total current expense (benefit) | 37.8 | (142) | 47.5 |
Deferred expense (benefit): | |||
Federal and state | 123.4 | 192 | 98 |
Foreign | 8.3 | 10.4 | 2.8 |
Total deferred expense (benefit) | 131.7 | 202.4 | 100.8 |
Total income tax expense (benefit) | $ 169.5 | $ 60.4 | $ 148.3 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Federal Income Tax Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Valuation Allowance [Line Items] | |||
Federal income tax rate: | 21.00% | 21.00% | 21.00% |
Reconciling items: | |||
Non-taxable investment income | (0.20%) | (0.20%) | (0.50%) |
Foreign earnings | 1.00% | 1.40% | 1.00% |
Non-deductible compensation | 0.70% | 0.70% | 0.80% |
Change in liability for prior year tax | (0.40%) | (0.50%) | 0.10% |
Change in valuation allowance | (0.20%) | 1.20% | 10.70% |
Net operating loss carryback - CARES Act | 0 | (0.137) | 0 |
Other | (0.30%) | 0.50% | (0.50%) |
Effective income tax rate | 21.60% | 10.40% | 32.60% |
Ike | |||
Reconciling items: | |||
Valuation allowance established on deferred tax assets | $ 6.7 | $ 49.7 |
Income Taxes (Summary of Unreco
Income Taxes (Summary of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ (15.6) | $ (12.5) | $ (11.8) |
Additions based on tax positions related to the current year | (0.6) | (0.5) | (0.5) |
Reductions based on tax positions related to the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | (5.9) | (2.7) | (0.4) |
Reductions for tax positions of prior years | 3.6 | 0.1 | 0.2 |
Lapses | 0 | 0 | 0 |
Balance at end of year | $ (18.5) | $ (15.6) | $ (12.5) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Total unrecognized tax benefit | $ 19.9 | $ 17.9 | $ 14 |
Recognized interest expense | (0.1) | 1.5 | 0.7 |
Interest accrued | 1.7 | 1.8 | 0.8 |
Penalties accrued | 0 | 0.8 | $ 0.8 |
Deferred tax assets, valuation allowance | $ 25.1 | $ 27.6 |
Income Taxes (Summary of Deferr
Income Taxes (Summary of Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Assets | ||
Policyholder and separate account reserves | $ 642.2 | $ 720.6 |
Net operating loss carryforwards | 78.8 | 53.8 |
Investments, net | 9.4 | 7.3 |
Credit carryforwards | 26.3 | 32.8 |
Employee and post-retirement benefits | 17.3 | 25.5 |
Compensation related | 37.5 | 29.8 |
Capital loss carryforwards | 0.3 | 9.8 |
Other | 47.1 | 47.6 |
Total deferred tax assets | 858.9 | 927.2 |
Less valuation allowance | (25.1) | (27.6) |
Deferred tax assets, net of valuation allowance | 833.8 | 899.6 |
Deferred Tax Liabilities | ||
Deferred acquisition costs | (1,325.8) | (1,266.5) |
Net unrealized appreciation on securities | (90.1) | (126.5) |
Intangible assets | (101.1) | (106) |
Total deferred tax liabilities | (1,517) | (1,499) |
Net deferred income tax liabilities | $ (683.2) | $ (599.4) |
Income Taxes (Summary of Net Op
Income Taxes (Summary of Net Operating Loss Carryforwards) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Federal Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 203.6 | $ 66.8 |
Federal Tax Authority | 2035 - 2041 | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 135.1 | |
Federal Tax Authority | Unlimited | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 68.5 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 142.1 | $ 162.4 |
Foreign Tax Authority | Unlimited | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 96.5 | |
Foreign Tax Authority | 2022 - 2037 | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 45.6 |
Deferred Acquisition Costs (Sch
Deferred Acquisition Costs (Schedule of Deferred Acquisition Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning balance | $ 7,388 | $ 6,121.5 | $ 4,203.4 |
Costs deferred | 4,691 | 4,022.9 | 4,022 |
Amortization | (3,268) | (2,756.4) | (2,103.9) |
Ending balance | $ 8,811 | $ 7,388 | $ 6,121.5 |
Property and Equipment (Compone
Property and Equipment (Components of Property and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Land | $ 10 | $ 10 | |
Property, Plant and Equipment [Line Items] | |||
Total | 917 | 780.5 | |
Less accumulated depreciation | (355.6) | (334.4) | |
Property and equipment, at cost less accumulated depreciation | 561.4 | 446.1 | |
Depreciation expenses | 73.8 | 56.1 | $ 51.8 |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total | 235.5 | 240.1 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total | 129.9 | 123.9 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Total | $ 541.6 | $ 406.5 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021reporting_unit | |
Goodwill [Line Items] | |
Number of reporting units | 4 |
Global Lifestyle | |
Goodwill [Line Items] | |
Number of reporting units | 3 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill by Reportable Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 2,589.3 | $ 2,205.4 | |
Acquisitions | (10.4) | 374.6 | |
Foreign currency translation and other | (7.3) | 9.3 | |
Goodwill, ending balance | 2,571.6 | 2,589.3 | |
Accumulated impairment losses | 1,405.9 | 1,405.9 | $ 1,268.1 |
Global Lifestyle | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 2,209.8 | 1,825.9 | |
Acquisitions | (10.4) | 374.6 | |
Foreign currency translation and other | (7.3) | 9.3 | |
Goodwill, ending balance | 2,192.1 | 2,209.8 | |
Global Housing | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 379.5 | 379.5 | |
Acquisitions | 0 | 0 | |
Foreign currency translation and other | 0 | 0 | |
Goodwill, ending balance | 379.5 | 379.5 | |
Connected Living | Global Lifestyle | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 715.2 | ||
Goodwill, ending balance | 698.7 | 715.2 | |
Global Automotive | Global Lifestyle | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 1,421.3 | ||
Goodwill, ending balance | 1,420.5 | 1,421.3 | |
Global Financial Services and Other | Global Lifestyle | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 73.3 | ||
Goodwill, ending balance | $ 72.9 | $ 73.3 |
VOBA and Other Intangible Ass_3
VOBA and Other Intangible Assets (Information About VOBA) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Present Value of Future Insurance Profits [Roll Forward] | |||
Beginning balance | $ 1,152.2 | $ 1,993.7 | $ 3,140.8 |
Additions (adjustments) | 0 | 0 | (4) |
Amortization, net of interest accrued | (567.9) | (835.7) | (1,121) |
Foreign currency translation and other | (0.9) | (5.8) | (22.1) |
Ending balance | $ 583.4 | $ 1,152.2 | $ 1,993.7 |
VOBA and Other Intangible Ass_4
VOBA and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization of intangible assets | $ 88.9 | $ 73.9 | $ 62.2 |
VOBA and Other Intangible Ass_5
VOBA and Other Intangible Assets (Estimated Amortization of VOBA) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Present Value of Future Insurance Profits, Amortization Expense, Next Five Years [Abstract] | ||||
2022 | $ 322.5 | |||
2023 | 177.8 | |||
2024 | 76.2 | |||
2025 | 3.3 | |||
2026 | 1.4 | |||
Thereafter | 2.2 | |||
Total | $ 583.4 | $ 1,152.2 | $ 1,993.7 | $ 3,140.8 |
VOBA and Other Intangible Ass_6
VOBA and Other Intangible Assets (Information About Other Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | $ 1,169.7 | $ 1,079.2 |
Accumulated Amortization | (450.5) | (383) |
Net Other Intangible Assets | 719.2 | 696.2 |
Indefinite-lived intangible assets | 12.1 | 12.1 |
Customer related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 617.4 | 519.5 |
Accumulated Amortization | (329.7) | (306.2) |
Net Other Intangible Assets | 287.7 | 213.3 |
Contract based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 420.3 | 432 |
Accumulated Amortization | (76.5) | (51) |
Net Other Intangible Assets | 343.8 | 381 |
Technology based | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 121.7 | 117.6 |
Accumulated Amortization | (39.5) | (22.3) |
Net Other Intangible Assets | 82.2 | 95.3 |
Marketing related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Value | 10.3 | 10.1 |
Accumulated Amortization | (4.8) | (3.5) |
Net Other Intangible Assets | $ 5.5 | $ 6.6 |
VOBA and Other Intangible Ass_7
VOBA and Other Intangible Assets (Future Amortization Expenses) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2022 | $ 98.1 |
2023 | 97.9 |
2024 | 93.8 |
2025 | 89.6 |
2026 | 78.4 |
Thereafter | 249.3 |
Total | $ 707.1 |
Reserves (Narrative) (Details)
Reserves (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unfavorable (favorable) prior year development | $ (6.5) | $ (40.5) | $ (15.9) |
Life and Annuity Insurance Product Line | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Guaranteed crediting rate on annuities | 4.50% | ||
Minimum | Life and Annuity Insurance Product Line | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Guaranteed crediting rate on annuities | 3.50% | ||
Minimum | Universal Life | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Crediting interest rates on universal life funds | 4.00% | ||
Surrender charge, period | 0 years | ||
Maximum | Life and Annuity Insurance Product Line | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Guaranteed crediting rate on annuities | 4.00% | ||
Maximum | Universal Life | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Crediting interest rates on universal life funds | 4.10% | ||
Surrender charge, period | 20 years | ||
Global Housing | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unfavorable (favorable) prior year development | $ 36.5 | (8) | 13.6 |
Global Housing | Hurricane | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unfavorable (favorable) prior year development | 11.3 | ||
Global Housing | Small Commercial Insurance | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unfavorable (favorable) prior year development | 21.9 | ||
Global Housing | Lender-placed Insurance | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unfavorable (favorable) prior year development | 14.2 | ||
Global Housing | Sharing Economy Insurance Product | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unfavorable (favorable) prior year development | 7 | ||
Global Lifestyle | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unfavorable (favorable) prior year development | (35.2) | (27.6) | (24) |
Prior year development of claims and benefits payable, foreign exchange rate impact | $ (0.7) | $ 0.5 | $ (0.4) |
Reserves (Roll Forward of Claim
Reserves (Roll Forward of Claims and Benefits Payable) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Claims and benefits payable, at beginning of year | $ 1,610.3 | $ 1,613.1 | $ 1,606.3 | |
Less: Reinsurance ceded and other | (825.6) | (849.4) | (855.1) | $ (874.2) |
Net claims and benefits payable, at beginning of year | 760.9 | 758 | 732.1 | |
Incurred losses and loss adjustment expenses related to: | ||||
Incurred losses and loss adjustment expenses, current year | 2,202.2 | 2,305.4 | 2,401.6 | |
Incurred losses and loss adjustment expenses, prior year(s) | (6.5) | (40.5) | (15.9) | |
Total incurred losses and loss adjustment expenses | 2,195.7 | 2,264.9 | 2,385.7 | |
Paid losses and loss adjustment expenses related to: | ||||
Paid losses and loss adjustment expenses, current year | 1,679.2 | 1,770.6 | 1,857.3 | |
Paid losses and loss adjustment expenses, prior year(s) | 505.1 | 491.4 | 502.5 | |
Transfer to liabilities held for sale (Note 4) | (2) | 0 | 0 | |
Total paid losses and loss adjustment expenses | 2,184.3 | 2,262 | 2,359.8 | |
Net claims and benefits payable, at end of year | 770.3 | 760.9 | 758 | |
Plus: Reinsurance ceded and other | 825.6 | 849.4 | 855.1 | $ 874.2 |
Claims and benefits payable, at end of year | 1,595.9 | 1,610.3 | 1,613.1 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Reinsurance recoverables | 6,183.9 | |||
Not Rated | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Reinsurance recoverables | 5,252.1 | |||
Not Rated | Ceded To U.S. Government | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Reinsurance recoverables | $ 143.8 | $ 95.8 | $ 86.8 |
Reserves (Prior Year Incurred L
Reserves (Prior Year Incurred Losses by Year) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Claims Development [Line Items] | |||
Incurred losses and loss adjustment expenses, prior year(s) | $ (6.5) | $ (40.5) | $ (15.9) |
Global Lifestyle | |||
Claims Development [Line Items] | |||
Incurred losses and loss adjustment expenses, prior year(s) | (35.2) | (27.6) | (24) |
Global Housing | |||
Claims Development [Line Items] | |||
Incurred losses and loss adjustment expenses, prior year(s) | 36.5 | (8) | 13.6 |
Corporate and Other | All Other | |||
Claims Development [Line Items] | |||
Incurred losses and loss adjustment expenses, prior year(s) | $ (7.8) | $ (4.9) | $ (5.5) |
Reserves (Schedule of Claims De
Reserves (Schedule of Claims Development) (Details) $ in Millions | Dec. 31, 2021USD ($)reported_claim | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Claims Development [Line Items] | |||||
Claims and benefits payable, net of reinsurance | $ 761.2 | ||||
Global Lifestyle | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,793.3 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,529.1 | ||||
Outstanding claims and benefits payable before 2017, net of reinsurance | 8.8 | ||||
Claims and benefits payable, net of reinsurance | 273 | ||||
Global Housing | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,491.4 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,024.1 | ||||
Outstanding claims and benefits payable before 2017, net of reinsurance | 5 | ||||
Claims and benefits payable, net of reinsurance | 472.3 | ||||
2017 | Global Lifestyle | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,178.4 | $ 1,178.4 | $ 1,178.3 | $ 1,178.6 | $ 1,201.9 |
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims | $ 0.2 | ||||
Cumulative Number of Reported Claims | reported_claim | 10,230,625 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,174.6 | 1,172.7 | 1,170.5 | 1,163.9 | 980.7 |
2017 | Global Housing | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 990 | 986.6 | 991.1 | 976.2 | 964.5 |
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims | $ 5.8 | ||||
Cumulative Number of Reported Claims | reported_claim | 252,679 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 978.3 | 962.8 | 942.8 | 902 | $ 700.7 |
2018 | Global Lifestyle | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,343.4 | 1,343.8 | 1,350.2 | 1,374.5 | |
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims | $ 1.9 | ||||
Cumulative Number of Reported Claims | reported_claim | 9,722,793 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,337.6 | 1,334.4 | 1,324.5 | 1,149.6 | |
2018 | Global Housing | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 926.1 | 916.3 | 916.3 | 918.1 | |
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims | $ 8.1 | ||||
Cumulative Number of Reported Claims | reported_claim | 202,534 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 908.9 | 893.6 | 854.6 | $ 622.5 | |
2019 | Global Lifestyle | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,498.7 | 1,502.2 | 1,522.2 | ||
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims | $ 6 | ||||
Cumulative Number of Reported Claims | reported_claim | 10,119,630 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,488.9 | 1,481.8 | 1,297.3 | ||
2019 | Global Housing | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 870.7 | 852 | 854.1 | ||
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims | $ 30.5 | ||||
Cumulative Number of Reported Claims | reported_claim | 202,734 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 818.4 | 762.7 | $ 546.3 | ||
2020 | Global Lifestyle | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,424 | 1,455.2 | |||
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims | $ 8.6 | ||||
Cumulative Number of Reported Claims | reported_claim | 10,104,237 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,407.1 | 1,229.8 | |||
2020 | Global Housing | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 861.9 | 858.5 | |||
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims | $ 61 | ||||
Cumulative Number of Reported Claims | reported_claim | 209,337 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 770.9 | $ 557 | |||
2021 | Global Lifestyle | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,348.8 | ||||
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims | $ 152.6 | ||||
Cumulative Number of Reported Claims | reported_claim | 9,452,388 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,120.9 | ||||
2021 | Global Housing | |||||
Claims Development [Line Items] | |||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 842.7 | ||||
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims | $ 224.8 | ||||
Cumulative Number of Reported Claims | reported_claim | 193,319 | ||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 547.6 |
Reserves (Schedule of Average A
Reserves (Schedule of Average Annual Payout of Incurred Claims by Age, Net of Reinsurance) (Details) | Dec. 31, 2021 |
Global Lifestyle | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 Unaudited | 85.60% |
Year 2 Unaudited | 13.40% |
Year 3 Unaudited | 0.60% |
Year 4 Unaudited | 0.20% |
Year 5 Unaudited | 0.20% |
Global Housing | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 Unaudited | 67.30% |
Year 2 Unaudited | 24.20% |
Year 3 Unaudited | 5.00% |
Year 4 Unaudited | 1.90% |
Year 5 Unaudited | 1.60% |
Reserves (Reconciliation of Net
Reserves (Reconciliation of Net Incurred and Paid Claims Development to Liability for Claims and Benefits Payable) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Claims and benefits payable, net of reinsurance | $ 761.2 | |||
Total reinsurance recoverable on unpaid claims | 737.8 | |||
Unallocated claim adjustment expense | 9.2 | |||
Claims and benefits payable | 1,595.9 | $ 1,610.3 | $ 1,613.1 | $ 1,606.3 |
Other short-duration insurance lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Claims and benefits payable, net of reinsurance | 15.2 | |||
Total reinsurance recoverable on unpaid claims | 2.5 | |||
Disposed business short-duration insurance lines (AEB and AH) | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Claims and benefits payable, net of reinsurance | 0.7 | |||
Total reinsurance recoverable on unpaid claims | 18.1 | |||
Insurance lines other than short-duration | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Claims and benefits payable | 87.7 | |||
Asbestos and Pollution | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Claims and benefits payable, net of reinsurance | 17.9 | |||
Global Lifestyle | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Claims and benefits payable, net of reinsurance | 273 | |||
Total reinsurance recoverable on unpaid claims | 428 | |||
Global Housing | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Claims and benefits payable, net of reinsurance | 472.3 | |||
Total reinsurance recoverable on unpaid claims | 289.2 | |||
Disposed of P&C Business | Global Lifestyle | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total reinsurance recoverable on unpaid claims | $ 190.6 |
Reinsurance (Reinsurance Recove
Reinsurance (Reinsurance Recoverable) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverable | $ 6,178.9 | $ 6,605.4 |
Ceded future policyholder benefits and expense | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverable | 338.4 | 1,133.8 |
Ceded unearned premium | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverable | 4,950 | 4,565.4 |
Ceded claims and benefits payable | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverable | 821.8 | 846.2 |
Ceded paid losses | ||
Ceded Credit Risk [Line Items] | ||
Total reinsurance recoverable | $ 68.7 | $ 60 |
Reinsurance (Schedule of Rating
Reinsurance (Schedule of Rating for Existing Reinsurance) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | $ 6,183.9 | ||
Allowance for credit losses | (5) | $ (24.6) | $ (2.8) |
Net reinsurance recoverable | 6,178.9 | 6,605.4 | |
A++ or A+ | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 709.3 | ||
A or A- | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 196.7 | ||
B++ or B+ | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 25.8 | ||
Not Rated | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 5,252.1 | ||
Ceded future policyholder benefits and expense | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 338.8 | ||
Allowance for credit losses | (0.4) | ||
Net reinsurance recoverable | 338.4 | 1,133.8 | |
Ceded future policyholder benefits and expense | A++ or A+ | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 328.5 | ||
Ceded future policyholder benefits and expense | A or A- | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 4.4 | ||
Ceded future policyholder benefits and expense | B++ or B+ | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 5.5 | ||
Ceded future policyholder benefits and expense | Not Rated | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 0.4 | ||
Ceded unearned premium | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 4,953.3 | ||
Allowance for credit losses | (3.3) | ||
Net reinsurance recoverable | 4,950 | 4,565.4 | |
Ceded unearned premium | A++ or A+ | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 82.5 | ||
Ceded unearned premium | A or A- | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 117.8 | ||
Ceded unearned premium | B++ or B+ | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 17.9 | ||
Ceded unearned premium | Not Rated | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 4,735.1 | ||
Ceded claims and benefits payable | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 823 | ||
Allowance for credit losses | (1.2) | ||
Net reinsurance recoverable | 821.8 | 846.2 | |
Ceded claims and benefits payable | A++ or A+ | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 287.6 | ||
Ceded claims and benefits payable | A or A- | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 61.5 | ||
Ceded claims and benefits payable | B++ or B+ | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 2.3 | ||
Ceded claims and benefits payable | Not Rated | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 471.6 | ||
Ceded paid losses | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 68.8 | ||
Allowance for credit losses | (0.1) | ||
Net reinsurance recoverable | 68.7 | 60 | |
Ceded paid losses | A++ or A+ | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 10.7 | ||
Ceded paid losses | A or A- | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 13 | ||
Ceded paid losses | B++ or B+ | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 0.1 | ||
Ceded paid losses | Not Rated | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | 45 | ||
Ceded To U.S. Government | Not Rated | |||
Ceded Credit Risk [Line Items] | |||
Best Ratings of Reinsurer | $ 143.8 | $ 95.8 | $ 86.8 |
Reinsurance (Narrative) (Detail
Reinsurance (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Reinsurance [Line Items] | ||
Invested assets held in trusts | $ 0 | $ 168.4 |
Reinsurance recoverable | 6,178.9 | $ 6,605.4 |
Disposal Group, Held-for-sale, Not Discontinued Operations | John Alden Life Insurance Company | ||
Reinsurance [Line Items] | ||
Reinsurance recoverable | 881.6 | |
Disposed Business | ||
Reinsurance [Line Items] | ||
Reinsurance recoverable | 625.7 | |
John Hancock | ||
Reinsurance [Line Items] | ||
Reinsurance recoverable | $ 410.2 |
Reinsurance (Effect of Reinsura
Reinsurance (Effect of Reinsurance on Premiums Earned and Benefits Incurred) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reinsurance [Line Items] | |||
Direct earned premiums | $ 15,910.1 | $ 14,912 | $ 14,021.2 |
Premiums assumed | 168.5 | 133.3 | 212.8 |
Premiums ceded | (7,506.5) | (6,769.5) | (6,275.2) |
Net earned premiums | 8,572.1 | 8,275.8 | 7,958.8 |
Direct policyholder benefits | 6,271.4 | 5,672.9 | 5,534.9 |
Policyholder benefits assumed | 139.1 | 122.3 | 212.9 |
Policyholder benefits ceded | (4,214.8) | (3,530.3) | (3,362.1) |
Net policyholder benefits | 2,195.7 | 2,264.9 | 2,385.7 |
Long Duration | |||
Reinsurance [Line Items] | |||
Direct earned premiums | 96.6 | 35.5 | 38.4 |
Premiums assumed | 0 | 0 | 0 |
Premiums ceded | (88.5) | (26.4) | (27.6) |
Net earned premiums | 8.1 | 9.1 | 10.8 |
Direct policyholder benefits | 322.2 | 91.3 | 198.8 |
Policyholder benefits assumed | 0 | 0 | 0 |
Policyholder benefits ceded | (315) | (84.9) | (190.3) |
Net policyholder benefits | 7.2 | 6.4 | 8.5 |
Short Duration | |||
Reinsurance [Line Items] | |||
Direct earned premiums | 15,813.5 | 14,876.5 | 13,982.8 |
Premiums assumed | 168.5 | 133.3 | 212.8 |
Premiums ceded | (7,418) | (6,743.1) | (6,247.6) |
Net earned premiums | 8,564 | 8,266.7 | 7,948 |
Direct policyholder benefits | 5,949.2 | 5,581.6 | 5,336.1 |
Policyholder benefits assumed | 139.1 | 122.3 | 212.9 |
Policyholder benefits ceded | (3,899.8) | (3,445.4) | (3,171.8) |
Net policyholder benefits | $ 2,188.5 | $ 2,258.5 | $ 2,377.2 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 31, 2021 | Jun. 30, 2021 | Nov. 30, 2020 | Aug. 31, 2019 | |
Debt Instrument [Line Items] | ||||||||
Carrying Value | $ 2,202,500,000 | $ 2,252,900,000 | ||||||
Interest expense | 111,800,000 | 104,500,000 | $ 110,600,000 | |||||
Accrued interest | 33,900,000 | 31,800,000 | ||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 900,000,000 | |||||||
Senior Notes | Floating rate senior notes due March 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal Amount | $ 300,000,000 | 0 | 50,000,000 | |||||
Carrying Value | $ 0 | 50,000,000 | ||||||
Senior Notes | 4.00% Senior Notes due March 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
State interest rate | 4.00% | |||||||
Principal Amount | $ 0 | 350,000,000 | $ 350,000,000 | |||||
Carrying Value | $ 0 | 348,900,000 | ||||||
Senior Notes | 4.20% Senior Notes due September 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
State interest rate | 4.20% | 4.20% | ||||||
Principal Amount | $ 300,000,000 | $ 300,000,000 | 300,000,000 | |||||
Carrying Value | $ 299,000,000 | 298,400,000 | ||||||
Senior Notes | 4.90% Senior Notes due March 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
State interest rate | 4.90% | 4.90% | ||||||
Principal Amount | $ 300,000,000 | $ 300,000,000 | 300,000,000 | |||||
Carrying Value | $ 297,500,000 | 297,200,000 | ||||||
Senior Notes | 3.70% Senior Notes due February 2030 | ||||||||
Debt Instrument [Line Items] | ||||||||
State interest rate | 3.70% | 3.70% | ||||||
Principal Amount | $ 350,000,000 | 350,000,000 | $ 350,000,000 | |||||
Carrying Value | $ 347,300,000 | 347,000,000 | ||||||
Senior Notes | 2.65% Senior Notes due January 2032 | ||||||||
Debt Instrument [Line Items] | ||||||||
State interest rate | 2.65% | 2.65% | ||||||
Principal Amount | $ 350,000,000 | 0 | $ 350,000,000 | |||||
Carrying Value | $ 346,400,000 | 0 | ||||||
Senior Notes | 6.75% Senior Notes due February 2034 | ||||||||
Debt Instrument [Line Items] | ||||||||
State interest rate | 6.75% | |||||||
Principal Amount | $ 275,000,000 | 275,000,000 | ||||||
Carrying Value | $ 272,400,000 | 272,300,000 | ||||||
Senior Notes | 5.25% Subordinated Notes due January 2061 | ||||||||
Debt Instrument [Line Items] | ||||||||
State interest rate | 5.25% | |||||||
Principal Amount | $ 250,000,000 | |||||||
Subordinated Notes | 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 | ||||||||
Debt Instrument [Line Items] | ||||||||
State interest rate | 7.00% | 7.00% | ||||||
Principal Amount | $ 400,000,000 | $ 400,000,000 | 400,000,000 | |||||
Carrying Value | $ 395,900,000 | 395,400,000 | ||||||
Subordinated Notes | 5.25% Subordinated Notes due January 2061 | ||||||||
Debt Instrument [Line Items] | ||||||||
State interest rate | 5.25% | |||||||
Principal Amount | $ 250,000,000 | 250,000,000 | ||||||
Carrying Value | $ 244,000,000 | $ 243,700,000 | ||||||
London Interbank Offered Rate (LIBOR) | Senior Notes | Floating rate senior notes due March 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
State interest rate | 1.25% | |||||||
Basis spread on variable rate | 1.25% | |||||||
London Interbank Offered Rate (LIBOR) | Subordinated Notes | 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 4.135% | 4.135% |
Debt (Senior Notes and Subordin
Debt (Senior Notes and Subordinated Notes) (Details) | Aug. 31, 2019USD ($) | Jul. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jan. 31, 2021USD ($) | Nov. 30, 2020USD ($) | Aug. 31, 2019USD ($) | Mar. 31, 2019 | Mar. 31, 2018USD ($)series | Mar. 31, 2013series | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jul. 31, 2021USD ($) | Dec. 31, 2016USD ($) | Feb. 29, 2004USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Loss on extinguishment of debt | $ 20,700,000 | $ 0 | $ 31,400,000 | ||||||||||||
2.65% Senior Notes due January 2032 | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 2.00% | ||||||||||||||
Senior Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 900,000,000 | ||||||||||||||
Number of series of debt issued | series | 2 | ||||||||||||||
Debt number of series | series | 3 | ||||||||||||||
Senior Notes | 2.65% Senior Notes due January 2032 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 350,000,000 | $ 350,000,000 | 0 | ||||||||||||
Senior notes interest rate | 2.65% | 2.65% | |||||||||||||
Senior notes discount rate | 0.158% | ||||||||||||||
Redemption percentage | 100.00% | ||||||||||||||
Senior Notes | 5.25% Subordinated Notes due January 2061 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 250,000,000 | ||||||||||||||
Senior notes interest rate | 5.25% | ||||||||||||||
Redemption percentage | 102.00% | ||||||||||||||
Redemption period | 90 days | ||||||||||||||
Net proceeds from issuance of debt | $ 243,700,000 | ||||||||||||||
Senior Notes | 3.70% Senior Notes due February 2030 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 350,000,000 | $ 350,000,000 | $ 350,000,000 | 350,000,000 | |||||||||||
Senior notes interest rate | 3.70% | 3.70% | 3.70% | ||||||||||||
Senior notes discount rate | 0.035% | 0.035% | |||||||||||||
Redemption percentage | 100.00% | ||||||||||||||
Senior Notes | Floating rate senior notes due March 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 300,000,000 | $ 0 | 50,000,000 | ||||||||||||
Redemption percentage | 100.00% | ||||||||||||||
Redemption of debt | $ 50,000,000 | ||||||||||||||
Repayment of debt, including extinguishment | $ 250,000,000 | ||||||||||||||
Length of time hedged in interest rate cash flow hedge | 3 years | ||||||||||||||
Outstanding aggregate principal amount | $ 300,000,000 | 300,000,000 | |||||||||||||
Senior Notes | Floating rate senior notes due March 2021 | London Interbank Offered Rate (LIBOR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Senior notes interest rate | 1.25% | ||||||||||||||
Basis spread on variable rate | 1.25% | ||||||||||||||
Senior Notes | 4.20% Senior Notes due September 2023 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 300,000,000 | $ 300,000,000 | 300,000,000 | ||||||||||||
Senior notes interest rate | 4.20% | 4.20% | |||||||||||||
Senior notes discount rate | 0.233% | ||||||||||||||
Redemption percentage | 100.00% | ||||||||||||||
Interest expense | 3,000,000 | ||||||||||||||
Senior Notes | 4.90% Senior Notes due March 2028 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 300,000,000 | $ 300,000,000 | 300,000,000 | ||||||||||||
Senior notes interest rate | 4.90% | 4.90% | |||||||||||||
Senior notes discount rate | 0.383% | ||||||||||||||
Redemption percentage | 100.00% | ||||||||||||||
Senior Notes | 4.00% Senior Notes due March 2023 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 0 | 350,000,000 | $ 350,000,000 | ||||||||||||
Senior notes interest rate | 4.00% | ||||||||||||||
Debt instrument, discount percentage | 0.00365 | ||||||||||||||
Redemption of debt | $ 350,000,000 | ||||||||||||||
Loss on extinguishment of debt | $ 20,700,000 | ||||||||||||||
Senior Notes | Senior Notes 2004 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 475,000,000 | ||||||||||||||
Senior notes discount rate | 0.61% | ||||||||||||||
Loss on extinguishment of debt | $ 31,400,000 | ||||||||||||||
Repurchase amount | 100,000,000 | 100,000,000 | |||||||||||||
Senior Notes | 6.75% Senior Notes due February 2034 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 275,000,000 | 275,000,000 | |||||||||||||
Senior notes interest rate | 6.75% | ||||||||||||||
Repurchase amount | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | ||||||||||||
Subordinated Notes | 5.25% Subordinated Notes due January 2061 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 250,000,000 | 250,000,000 | |||||||||||||
Senior notes interest rate | 5.25% | ||||||||||||||
Subordinated Notes | 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||||||||||||
Senior notes interest rate | 7.00% | 7.00% | |||||||||||||
Redemption percentage | 102.00% | ||||||||||||||
Redemption period | 90 days | ||||||||||||||
Subordinated Notes | 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 | London Interbank Offered Rate (LIBOR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 4.135% | 4.135% | |||||||||||||
Ba1 | Senior Notes | 2.65% Senior Notes due January 2032 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 0.25% | ||||||||||||||
Ba2 | Senior Notes | 2.65% Senior Notes due January 2032 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 0.50% | ||||||||||||||
Ba3 | Senior Notes | 2.65% Senior Notes due January 2032 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 0.75% | ||||||||||||||
B1 or below | Senior Notes | 2.65% Senior Notes due January 2032 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 1.00% | ||||||||||||||
BB+ | Senior Notes | 2.65% Senior Notes due January 2032 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 0.25% | ||||||||||||||
BB | Senior Notes | 2.65% Senior Notes due January 2032 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 0.50% | ||||||||||||||
BB- | Senior Notes | 2.65% Senior Notes due January 2032 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 0.75% | ||||||||||||||
B+ or below | Senior Notes | 2.65% Senior Notes due January 2032 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate | 1.00% | ||||||||||||||
Interest Rate Swap | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loss reclassified out of accumulated other comprehensive income | $ 2,600,000 |
Debt (Credit Facility and Comme
Debt (Credit Facility and Commercial Paper Program) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | ||||
Borrowing under secured revolving credit facility | $ 0 | $ 200,000,000 | $ 0 | |
Interest expense | 111,800,000 | 104,500,000 | $ 110,600,000 | |
JP Morgan Chase Bank, N.A. and Wells Fargo National Associate | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | 0 | 0 | ||
JP Morgan Chase Bank, N.A. and Wells Fargo National Associate | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Borrowing under secured revolving credit facility | 0 | |||
Revolving Credit Facility | JP Morgan Chase Bank, N.A. and Bank of America, N.A | Prior Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Senior revolving credit facility borrowing capacity | $ 450,000,000 | |||
Term of debt instrument | 5 years | |||
Borrowing under secured revolving credit facility | $ 200,000,000 | |||
Interest expense | $ 1,700,000 | |||
Revolving Credit Facility | JP Morgan Chase Bank, N.A. and Bank of America, N.A | Prior Credit Facility | London Interbank Offered Rate (LIBOR) | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Revolving Credit Facility | JP Morgan Chase Bank, N.A. and Wells Fargo National Associate | Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Senior revolving credit facility borrowing capacity | $ 500,000,000 | |||
Term of debt instrument | 5 years | |||
Maximum borrowing capacity | $ 700,000,000 | |||
Sublimit for letters of credit issued | 50,000,000 | |||
Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Senior revolving credit facility available capacity | 495,500,000 | |||
Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | 4,500,000 | |||
Commercial Paper | ||||
Line of Credit Facility [Line Items] | ||||
Amount outstanding | $ 0 | $ 0 |
Debt (Covenants) (Details)
Debt (Covenants) (Details) - Line of Credit $ in Millions | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Consolidated adjustment net worth, minimum amount, minimum net worth at acquisition | $ 4,200 |
Consolidated adjustment net worth, minimum amount, minimum net worth at acquisition, percent of net income | 25.00% |
Consolidated adjustment net worth, minimum amount, minimum net worth at acquisition, percent of net cash proceeds | 25.00% |
Maximum | |
Debt Instrument [Line Items] | |
Debt to capitalization | 0.35 |
Debt (Interest Rate Derivatives
Debt (Interest Rate Derivatives) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
OCI cash flow hedge gain (loss) reclassification | $ 3 | $ 3 | $ 3 | |
Interest Rate Derivatives | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
OCI cash flow hedge gain (loss) before reclassification | $ 26.7 | |||
OCI cash flow hedge gain (loss) after reclassification | $ 15.6 | $ 18.6 |
Equity Transactions (Common Sto
Equity Transactions (Common Stock) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common Stock, Outstanding [Roll Forward] | |||
Shares of common stock outstanding, beginning (in shares) | 57,967,808 | 59,945,893 | 61,908,979 |
Vested restricted stock and restricted stock units, net (in shares) | 214,116 | 213,569 | 248,333 |
Issuance related to performance share units (in shares) | 91,845 | 157,155 | 117,581 |
Issuance related to ESPP (in shares) | 113,555 | 90,166 | 88,498 |
Shares of common stock repurchased (in shares) | (5,337,122) | (2,438,975) | (2,417,498) |
Shares of common stock outstanding, ending (in shares) | 55,754,113 | 57,967,808 | 59,945,893 |
Shares authorized (in shares) | 800,000,000 | 800,000,000 | |
Common Class B | |||
Common Stock, Outstanding [Roll Forward] | |||
Shares authorized (in shares) | 150,001 | ||
Common Class C | |||
Common Stock, Outstanding [Roll Forward] | |||
Shares authorized (in shares) | 400,001 | ||
Series D Preferred Stock | |||
Common Stock, Outstanding [Roll Forward] | |||
Issuance related to MCPS (in shares) | 2,703,911 | 0 | 0 |
Equity Transactions (Stock Repu
Equity Transactions (Stock Repurchase) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2021 | Jan. 31, 2021 | |
Equity [Abstract] | |||||
Stock repurchase authorized amount | $ 900,000,000 | $ 600,000,000 | |||
Number of shares repurchased (in shares) | 5,337,122 | 2,438,975 | 2,417,498 | ||
Shares repurchased, value | $ 844,400,000 | $ 299,800,000 | $ 274,900,000 | ||
Value remaining under total repurchase authorization | $ 842,100,000 |
Equity Transactions (Issuance o
Equity Transactions (Issuance of Mandatory Convertible Preferred Stock) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||||
Preferred stock dividends paid | $ 4.7 | $ 18.7 | $ 18.7 | ||
Series D Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Number of shares issued (in shares) | 2,875,000 | ||||
Sale of stock, price per share (in dollars per share) | $ 100 | ||||
Issuance of mandatory convertible preferred stock, net of issuance costs | $ 276.4 | ||||
Shares conversion ratio | 0.9405 | ||||
Shares converted (in shares) | 2,703,911 | ||||
Liquidation preference per share (in dollars per share) | $ 100 | ||||
Preferred stock, dividend rate | 6.50% | 6.50% |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2022$ / sharesshares | Jul. 31, 2021$ / sharesshares | Jan. 31, 2021$ / sharesshares | Jul. 31, 2020$ / sharesshares | Dec. 31, 2021USD ($)performance_metricoffering_periodshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | May 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Forfeiture rate | 5.00% | 5.00% | 5.00% | |||||
Long-Term Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Company's common stock authorized to employees (in shares) | shares | 1,840,112 | |||||||
Long-Term Equity Incentive Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 3 years | |||||||
Unrecognized compensation cost | $ 22,400,000 | |||||||
Unrecognized compensation cost expected to be recognized over a weighted-average period (in years) | 11 months 19 days | |||||||
Compensation expense | $ 32,800,000 | $ 29,400,000 | $ 29,500,000 | |||||
Compensation expenses income tax benefit | $ 5,900,000 | $ 5,200,000 | $ 5,300,000 | |||||
Long-Term Equity Incentive Plan | Performance Share Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of payout level minimum | 0.00% | 0.00% | 0.00% | |||||
Percentage of payout level maximum | 200.00% | 200.00% | 200.00% | |||||
Percentage of payout level target | 100.00% | 100.00% | 100.00% | |||||
Performance measures | performance_metric | 2 | |||||||
Performance period | 3 years | |||||||
Unrecognized compensation cost | $ 21,600,000 | |||||||
Unrecognized compensation cost expected to be recognized over a weighted-average period (in years) | 8 months 4 days | |||||||
Compensation expense | $ 31,800,000 | $ 26,500,000 | $ 23,200,000 | |||||
Compensation expenses income tax benefit | $ 3,300,000 | 2,600,000 | 2,700,000 | |||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Company's common stock authorized to employees (in shares) | shares | 5,000,000 | |||||||
Number of offering periods | offering_period | 2 | |||||||
Percentage of stock price purchased | 90.00% | |||||||
Maximum number of shares can be purchased each offering period per employee | shares | 5,000 | |||||||
Participants' maximum contribution per offering period | $ 7,500 | |||||||
Participants' maximum contribution per year | $ 15,000 | |||||||
Number of continuous months worked | 6 months | |||||||
Non temporary employee requirement (months employed) | 12 months | |||||||
Maximum number of days for leave of absence | 90 days | |||||||
Common shares issued | shares | 53,802 | 59,753 | 50,521 | |||||
Discounted price of shares issued (in dollars per share) | $ / shares | $ 118.90 | $ 90.96 | $ 92.96 | |||||
Compensation expense | $ 2,200,000 | 2,000,000 | 1,300,000 | |||||
Compensation expenses income tax benefit | $ 100,000 | $ 100,000 | $ 0 | |||||
Subsequent Event | Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common shares issued | shares | 46,460 | |||||||
Discounted price of shares issued (in dollars per share) | $ / shares | $ 140.27 | |||||||
Tranche one | Long-Term Equity Incentive Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
RSU vesting terms for employees and directors | 33.33% | |||||||
Tranche two | Long-Term Equity Incentive Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
RSU vesting terms for employees and directors | 33.33% | |||||||
Tranche three | Long-Term Equity Incentive Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
RSU vesting terms for employees and directors | 33.33% | |||||||
Director | Long-Term Equity Incentive Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 3 years | |||||||
Director | Tranche one | Long-Term Equity Incentive Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
RSU vesting terms for employees and directors | 33.33% | |||||||
Director | Tranche two | Long-Term Equity Incentive Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
RSU vesting terms for employees and directors | 33.33% | |||||||
Director | Tranche three | Long-Term Equity Incentive Plan | Restricted Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
RSU vesting terms for employees and directors | 33.33% |
Stock Based Compensation (Summa
Stock Based Compensation (Summary of Company's Outstanding Restricted Stock Units) (Details) - Long-Term Equity Incentive Plan - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock Units | |||
Shares outstanding, Beginning Balance (in shares) | 723,726 | ||
Grants (in shares) | 252,613 | ||
Vests (in shares) | (330,053) | ||
Forfeitures (in shares) | (18,852) | ||
Shares outstanding, Ending Balance (in shares) | 627,434 | 723,726 | |
Weighted-Average Grant-Date Fair Value | |||
Weighted-average grant-date fair value, shares outstanding, beginning balance (in dollars per share) | $ 95.67 | ||
Grants, weight-average grant-date fair value (in dollars per share) | 143.20 | $ 96.33 | $ 102.86 |
Vests, weighted-average grant-date fair value (in dollars per share) | 96.70 | ||
Forfeitures, weighted-average grant-date fair value (in dollars per share) | 110.38 | ||
Weighted-average grant-date fair value, shares outstanding, ending balance (in dollars per share) | $ 113.84 | $ 95.67 | |
Shares vested but deferred (shares) | 75,270 | ||
Vested but deferred, weighted-average grant-date fair value (in dollars per share) | $ 80.02 | ||
Fair value of shares vested during the period (in dollars per share) | $ 47.4 | $ 32.3 | $ 38.4 |
Stock Based Compensation (RSU A
Stock Based Compensation (RSU Activity) (Details) - Long-Term Equity Incentive Plan - Restricted Stock Units - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 32.8 | $ 29.4 | $ 29.5 |
Income tax benefit | (5.9) | (5.2) | (5.3) |
Share-based compensation expense, net of tax | $ 26.9 | $ 24.2 | $ 24.2 |
Stock Based Compensation (Sched
Stock Based Compensation (Schedule of Company's Outstanding Performance Share Units) (Details) - Long-Term Equity Incentive Plan - Performance Share Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock Units | |||
Shares outstanding, Beginning Balance (in shares) | 674,099 | ||
Grants (in shares) | 208,040 | ||
Vests (in shares) | (177,157) | ||
Performance adjustment (in shares) | 28,290 | ||
Forfeitures (in shares) | (22,156) | ||
Shares outstanding, Ending Balance (in shares) | 711,116 | 674,099 | |
Weighted-Average Grant-Date Fair Value | |||
Weighted-average grant-date fair value, shares outstanding, beginning balance (in dollars per share) | $ 101.45 | ||
Grants, weight-average grant-date fair value (in dollars per share) | 148.04 | $ 87.53 | $ 105.23 |
Vests, weighted-average grant-date fair value (in dollars per share) | 123.84 | ||
Performance adjustment, weighted-average grant-date fair value (in dollars per share) | 125.57 | ||
Forfeitures, weighted-average grant-date fair value (in dollars per share) | 107.30 | ||
Weighted-average grant-date fair value, shares outstanding, ending balance (in dollars per share) | $ 110.31 | $ 101.45 | |
Fair value of shares vested during the period (in dollars per share) | $ 24.6 | $ 24.9 | $ 19.7 |
Stock Based Compensation (PSU A
Stock Based Compensation (PSU Activity) (Details) - Long-Term Equity Incentive Plan - Performance Share Units - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 31.8 | $ 26.5 | $ 23.2 |
Income tax benefit | (3.3) | (2.6) | (2.7) |
Share-based compensation expense, net of tax | $ 28.5 | $ 23.9 | $ 20.5 |
Stock Based Compensation (Sch_2
Stock Based Compensation (Schedule of Estimation of Fair Value of Awards) (Details) - Performance Share Units - Long-Term Equity Incentive Plan | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 34.14% | 27.23% | 20.92% |
Expected term (years) | 2 years 9 months 14 days | 2 years 9 months 14 days | 2 years 9 months 18 days |
Risk free interest rate | 0.29% | 0.41% | 2.40% |
Stock Based Compensation (Sch_3
Stock Based Compensation (Schedule of Company's Share-Based Payment Award, ESPP, Valuation Assumptions) (Details) - Employee Stock Purchase Plan | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expected volatility, minimum | 24.56% | 16.38% | 18.47% |
Expected volatility, maximum | 28.67% | 52.04% | 26.91% |
Risk free interest rates, minimum | 0.06% | 0.17% | 2.10% |
Risk free interest rates, maximum | 0.09% | 1.57% | 2.56% |
Expected term (years) | 6 months | 6 months | 6 months |
Minimum | |||
Dividend yield | 1.67% | 1.89% | 2.18% |
Maximum | |||
Dividend yield | 1.98% | 2.46% | 2.63% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income, Net of Tax) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI: | |||
Beginning balance | $ 5,951.4 | ||
Change in accumulated other comprehensive income before reclassifications | (229.6) | $ 274.2 | $ 578.2 |
Amounts reclassified from accumulated other comprehensive income | (630.2) | 24.1 | (11.3) |
Total other comprehensive (loss) income | (859.8) | 298.3 | 566.9 |
Ending balance | 5,489.7 | 5,951.4 | |
Accumulated other comprehensive (loss) income | |||
AOCI: | |||
Beginning balance | 709.8 | 411.5 | (155.4) |
Total other comprehensive (loss) income | (859.8) | 298.3 | 566.9 |
Ending balance | (150) | 709.8 | 411.5 |
Foreign currency translation adjustment | |||
AOCI: | |||
Beginning balance | (295.6) | (358.9) | (375.6) |
Change in accumulated other comprehensive income before reclassifications | (31) | 24.9 | 16.7 |
Amounts reclassified from accumulated other comprehensive income | (0.3) | 38.4 | 0 |
Total other comprehensive (loss) income | (31.3) | 63.3 | 16.7 |
Ending balance | (326.9) | (295.6) | (358.9) |
Net unrealized gains on securities | |||
AOCI: | |||
Beginning balance | 1,097.6 | 872 | 316.1 |
Change in accumulated other comprehensive income before reclassifications | (215.9) | 233.5 | 565 |
Amounts reclassified from accumulated other comprehensive income | (625.1) | (7.9) | (9.1) |
Total other comprehensive (loss) income | (841) | 225.6 | 555.9 |
Ending balance | 256.6 | 1,097.6 | 872 |
Net unrealized gains on derivative transactions | |||
AOCI: | |||
Beginning balance | 14.7 | 17.1 | 18.4 |
Change in accumulated other comprehensive income before reclassifications | 0 | 0 | 1 |
Amounts reclassified from accumulated other comprehensive income | (2.3) | (2.4) | (2.3) |
Total other comprehensive (loss) income | (2.3) | (2.4) | (1.3) |
Ending balance | 12.4 | 14.7 | 17.1 |
Unamortized net (losses) on Pension Plans | |||
AOCI: | |||
Beginning balance | (106.9) | (118.7) | (114.3) |
Change in accumulated other comprehensive income before reclassifications | 17.3 | 15.8 | (4.5) |
Amounts reclassified from accumulated other comprehensive income | (2.5) | (4) | 0.1 |
Total other comprehensive (loss) income | 14.8 | 11.8 | (4.4) |
Ending balance | $ (92.1) | $ (106.9) | $ (118.7) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amount reclassified from AOCI | |||
Iké net losses | $ 0 | $ 5.9 | $ 163 |
Income tax expense | 169.5 | 60.4 | 148.3 |
Interest expense | 111.8 | 104.5 | 110.6 |
Net income | (1,372.4) | (442.7) | (386.8) |
Reclassification, net of tax | (630.2) | 24.1 | (11.3) |
Reclassification out of Accumulated other Comprehensive Income | |||
Amount reclassified from AOCI | |||
Reclassification, net of tax | (630.2) | 24.1 | (11.3) |
Foreign currency translation adjustment | |||
Amount reclassified from AOCI | |||
Reclassification, net of tax | (0.3) | 38.4 | 0 |
Foreign currency translation adjustment | Reclassification out of Accumulated other Comprehensive Income | |||
Amount reclassified from AOCI | |||
Iké net losses | (0.8) | 38.4 | 0 |
Income tax expense | 0.5 | 0 | 0 |
Net income | (0.3) | 38.4 | 0 |
Net unrealized gains on securities | |||
Amount reclassified from AOCI | |||
Reclassification, net of tax | (625.1) | (7.9) | (9.1) |
Net unrealized gains on securities | Reclassification out of Accumulated other Comprehensive Income | |||
Amount reclassified from AOCI | |||
Net realized (losses) gains on investments and fair value changes to equity securities | (797.8) | (10) | (11.5) |
Income tax expense | 172.7 | 2.1 | 2.4 |
Net income | (625.1) | (7.9) | (9.1) |
Net unrealized gains on derivative transactions | |||
Amount reclassified from AOCI | |||
Reclassification, net of tax | (2.3) | (2.4) | (2.3) |
Net unrealized gains on derivative transactions | Reclassification out of Accumulated other Comprehensive Income | |||
Amount reclassified from AOCI | |||
Income tax expense | 0.5 | 0.5 | 0.7 |
Interest expense | (2.8) | (2.9) | (3) |
Net income | (2.3) | (2.4) | (2.3) |
Unamortized net (losses) on Pension Plans | |||
Amount reclassified from AOCI | |||
Reclassification, net of tax | (2.5) | (4) | 0.1 |
Unamortized net (losses) on Pension Plans | Reclassification out of Accumulated other Comprehensive Income | |||
Amount reclassified from AOCI | |||
Reclassification, before tax | (3.2) | (5.2) | 0.1 |
Reclassification, tax | 0.7 | 1.2 | 0 |
Reclassification, net of tax | (2.5) | (4) | 0.1 |
Amortization of net loss | Reclassification out of Accumulated other Comprehensive Income | |||
Amount reclassified from AOCI | |||
Reclassification, before tax | 7.2 | 5.1 | 0 |
Amortization of prior service credit | Reclassification out of Accumulated other Comprehensive Income | |||
Amount reclassified from AOCI | |||
Reclassification, before tax | (13.5) | (11.3) | 0 |
Settlement loss | Reclassification out of Accumulated other Comprehensive Income | |||
Amount reclassified from AOCI | |||
Reclassification, before tax | $ 3.1 | $ 1 | $ 0.1 |
Statutory Information (Summary
Statutory Information (Summary of Statutory Net Income and Capital and Surplus) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statutory Accounting Practices [Line Items] | |||
Total statutory net income | $ 486.6 | $ 543.8 | $ 418 |
Total statutory capital and surplus | 1,649.4 | 2,013.1 | |
Discontinued Operations, Held-for-sale | Global Preneed | |||
Statutory Accounting Practices [Line Items] | |||
Total statutory net income | 0 | ||
Total statutory capital and surplus | 0 | ||
Property and casualty companies | |||
Statutory Accounting Practices [Line Items] | |||
Total statutory net income | 468 | 445.5 | 313.3 |
Total statutory capital and surplus | 1,529.1 | 1,567.3 | |
Life and health companies | |||
Statutory Accounting Practices [Line Items] | |||
Total statutory net income | 18.6 | 98.3 | $ 104.7 |
Total statutory capital and surplus | $ 120.3 | $ 445.8 |
Statutory Information (Narrativ
Statutory Information (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Statutory Accounting Practices [Line Items] | |
Statutory surplus, percentage | 10.00% |
Maximum dividend paid | $ 475.3 |
Risk based capital ratio requirement, authorized control level (less than) | 100.00% |
Property and casualty companies | |
Statutory Accounting Practices [Line Items] | |
Total adjusted capital | $ 1,530 |
Authorized control level | 326.1 |
Life and health companies | |
Statutory Accounting Practices [Line Items] | |
Total adjusted capital | 126.7 |
Authorized control level | $ 14.3 |
Minimum | |
Statutory Accounting Practices [Line Items] | |
Risk based capital ratio requirement, company action level | 100.00% |
Maximum | |
Statutory Accounting Practices [Line Items] | |
Risk based capital ratio requirement, company action level | 200.00% |
Retirement and Other Employee_3
Retirement and Other Employee Benefits (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($)security | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 29, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of pension plan deficit added to amount of service cost | 15.00% | |||
Pension contributions | $ 0 | |||
Future pension contributions | $ 0 | |||
Length of averaging method | 5 years | |||
Number of bonds in yield curve that is utilized in the cash flow analysis for the pension plan | security | 228 | |||
Percentage of actual return on plan assets | 2.40% | 10.90% | 16.30% | |
Amounts expensed by contribution plan | $ 40,300,000 | $ 41,300,000 | $ 38,400,000 | |
Fixed Income | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets target allocation percentage | 80.00% | |||
Fixed Maturity Energy and Power | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average plan asset allocation | 14.00% | |||
Maximum exposure to creditor | 4.00% | |||
Fixed Maturity Finance and Real Estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average plan asset allocation | 9.00% | |||
Maximum exposure to creditor | 8.00% | |||
Fixed Maturity Communication Industries | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average plan asset allocation | 12.00% | |||
Maximum exposure to creditor | 13.00% | |||
Real estate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets target allocation percentage | 10.00% | |||
Hedge funds | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets target allocation percentage | 5.00% | |||
Equities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan assets target allocation percentage | 5.00% | |||
Weighted average plan asset allocation | 4.00% | |||
Mutual funds - U.S. listed large cap | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average plan asset allocation | 97.00% | |||
Fixed maturity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Weighted average plan asset allocation | 86.00% | |||
Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of years to maturity for bonds in yield curve that is utilized in the cash flow analysis for the pension plan | 0 years | |||
Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of years to maturity for bonds in yield curve that is utilized in the cash flow analysis for the pension plan | 30 years | |||
Defined Benefit Postretirement Health Coverage | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, discount rate | 1.55% | |||
Reduction to benefits obligations | $ 65,600,000 |
Retirement and Other Employee_4
Retirement and Other Employee Benefits (Summary of Pension Benefits and Retirement Health Benefits Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | $ (895.3) | $ (825.1) | |
Interest cost | (15.2) | (22.4) | $ (28.6) |
Amendments | 0 | 0 | |
Settlements | 15.7 | 0 | |
Actuarial gain (loss) | 28 | (99) | |
Benefits paid | 34.5 | 51.2 | |
Projected benefit obligation at end of year | (832.3) | (895.3) | (825.1) |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 852.8 | 809 | |
Actual return on plan assets | 20.7 | 88 | |
Employer contributions | 5.5 | 8.3 | |
Settlements | (15.7) | 0 | |
Benefits paid (including administrative expenses) | (35.8) | (52.5) | |
Fair value of plan assets at end of year | 827.5 | 852.8 | 809 |
Funded status at end of year | (4.8) | (42.5) | |
Retirement Health Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | (21.3) | (85.4) | |
Interest cost | (0.1) | (0.7) | (3.1) |
Amendments | 0 | 65.6 | |
Settlements | 0 | 0 | |
Actuarial gain (loss) | 1.5 | (5.4) | |
Benefits paid | 4.6 | 4.6 | |
Projected benefit obligation at end of year | (15.3) | (21.3) | (85.4) |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 44.3 | 44 | |
Actual return on plan assets | 1 | 4.7 | |
Employer contributions | 0.2 | 0.2 | |
Settlements | 0 | 0 | |
Benefits paid (including administrative expenses) | (4.6) | (4.6) | |
Fair value of plan assets at end of year | 40.9 | 44.3 | $ 44 |
Funded status at end of year | $ 25.6 | $ 23 |
Retirement and Other Employee_5
Retirement and Other Employee Benefits (Summary of Projected Benefit Obligations and the Accumulated Benefit Obligations) (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 827.5 | $ 852.8 | $ 809 |
Projected benefit obligation | (832.3) | (895.3) | $ (825.1) |
Funded status at end of year | (4.8) | (42.5) | |
Accumulated benefit obligation | 832.3 | 895.3 | |
Qualified Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 827.5 | 852.8 | |
Projected benefit obligation | (752.7) | (809.6) | |
Funded status at end of year | 74.8 | 43.2 | |
Accumulated benefit obligation | 752.7 | 809.6 | |
Unfunded Nonqualified Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Projected benefit obligation | (79.6) | (85.7) | |
Funded status at end of year | (79.6) | (85.7) | |
Accumulated benefit obligation | $ 79.6 | $ 85.7 |
Retirement and Other Employee_6
Retirement and Other Employee Benefits (Amount Recognized in Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets | $ 74.8 | $ 43.2 |
Liabilities | (79.6) | (85.7) |
Retirement Health Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets | 25.6 | 23 |
Liabilities | $ 0 | $ 0 |
Retirement and Other Employee_7
Retirement and Other Employee Benefits (Amounts Recognized in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net (loss) gain | $ (163.2) | $ (194.2) | $ (157.4) |
Prior service (cost) credit | (0.4) | (0.4) | (0.5) |
Total recognized in accumulated other comprehensive (loss) income | (163.6) | (194.6) | (157.9) |
Retirement Health Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net (loss) gain | 6.2 | 5.9 | 8.5 |
Prior service (cost) credit | 40.8 | 54.3 | 0 |
Total recognized in accumulated other comprehensive (loss) income | $ 47 | $ 60.2 | $ 8.5 |
Retirement and Other Employee_8
Retirement and Other Employee Benefits (Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | $ 15.2 | $ 22.4 | $ 28.6 |
Expected return on plan assets | (27.3) | (30.6) | (35.5) |
Amortization of prior service credit (cost) | 0.1 | 0.1 | 0 |
Amortization of net loss (gain) | 7.8 | 5.1 | 1.2 |
Curtailment/settlement loss | 3.1 | 1 | 0.1 |
Net periodic benefit cost | (1.1) | (2) | (5.6) |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive income | |||
Prior service cost | 0 | 0 | 0 |
Net gain (loss) | (20.1) | 42.9 | 16.8 |
Amortization of prior service (cost) credit | (0.1) | (0.1) | 0 |
Amortization of net (loss) gain | (10.9) | (6.1) | (1.3) |
Total recognized in accumulated other comprehensive (loss) income | (31.1) | 36.7 | 15.5 |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | (32.2) | 34.7 | 9.9 |
Retirement Health Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Interest cost | 0.1 | 0.7 | 3.1 |
Expected return on plan assets | (1.5) | (1.8) | (1.9) |
Amortization of prior service credit (cost) | (13.6) | (11.3) | 0 |
Amortization of net loss (gain) | (0.6) | 0 | (1.2) |
Curtailment/settlement loss | 0 | 0 | 0 |
Net periodic benefit cost | (15.6) | (12.4) | 0 |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive income | |||
Prior service cost | 0 | (65.6) | 0 |
Net gain (loss) | (0.9) | 2.5 | (12.2) |
Amortization of prior service (cost) credit | 13.6 | 11.3 | 0 |
Amortization of net (loss) gain | 0.6 | 0 | 1.2 |
Total recognized in accumulated other comprehensive (loss) income | 13.3 | (51.8) | (11) |
Total recognized in net periodic benefit cost and other comprehensive (loss) income | $ (2.3) | $ (64.2) | $ (11) |
Retirement and Other Employee_9
Retirement and Other Employee Benefits (Weighted Average Assumptions Used to Determine Projected Benefit Obligation) (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Benefits | Qualified Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.79% | 2.39% | 3.27% |
Pension Benefits | Unfunded Nonqualified Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.68% | 2.20% | 3.11% |
Retirement Health Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.08% | 0.60% | 3.23% |
Retirement and Other Employe_10
Retirement and Other Employee Benefits (Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost) (Details) | 2 Months Ended | 10 Months Ended | 12 Months Ended | ||
Feb. 28, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | Qualified Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Effective discount rate for benefit obligations | 3.27% | 2.39% | 3.27% | 4.33% | |
Effective rate for interest on benefit obligations | 2.84% | 1.80% | 2.84% | 3.98% | |
Expected long-term return on plan assets | 3.65% | 4.15% | 4.75% | ||
Pension Benefits | Unfunded Nonqualified Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Effective discount rate for benefit obligations | 3.11% | 2.20% | 3.11% | 4.21% | |
Effective rate for interest on benefit obligations | 2.77% | 1.45% | 2.77% | 3.88% | |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% | ||
Retirement Health Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Effective discount rate for benefit obligations | 3.23% | 1.55% | 0.60% | 1.55% | 4.30% |
Effective rate for interest on benefit obligations | 2.83% | 1.53% | 0.55% | 1.53% | 3.99% |
Expected long-term return on plan assets | 4.15% | 4.15% | 3.65% | 4.75% |
Retirement and Other Employe_11
Retirement and Other Employee Benefits (Summary of Health Care Cost Trend Rates) (Details) - Retirement Health Benefits | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Health care cost trend rate assumed for next year, pre-65 non-reimbursement plan | 5.50% | 8.00% | 8.20% |
Health care cost trend rate assumed for next year, post-65 non-reimbursement plan (Medical) | 4.10% | 5.90% | 5.90% |
Health care cost trend rate assumed for next year, post-65 non-reimbursement plan (Rx) | 6.90% | 13.00% | 13.50% |
Health care cost trend rate assumed for next year, pre-65 reimbursement plan | 5.40% | 9.70% | 9.90% |
Health care cost trend rate assumed for next year, post-65 reimbursement plan | 5.40% | 9.70% | 9.90% |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | 4.00% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate, pre-65, non-reimbursement plan | 2045 | 2039 | 2038 |
Year that the rate reaches the ultimate trend rate, post-65, non-reimbursement plan (Medical & Rx) | 2045 | 2039 | 2038 |
Year that the rate reaches the ultimate trend rate, pre-65, reimbursement plan | 2045 | 2039 | 2038 |
Year that the rate reaches the ultimate trend rate, post-65, reimbursement plan | 2045 | 2039 | 2038 |
Retirement and Other Employe_12
Retirement and Other Employee Benefits (Summary of Fair Value Hierarchy for Plan Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | $ 876.5 | $ 875.7 |
Pension Benefits | Short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 11.1 | 10.6 |
Pension Benefits | Preferred stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 1.1 | 1.2 |
Pension Benefits | Mutual funds - U.S. listed large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 33.8 | 26.2 |
Pension Benefits | U.S. & foreign government and government agencies and authorities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 231.2 | 174.8 |
Pension Benefits | Corporate - U.S. & foreign investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 395.5 | 483.1 |
Pension Benefits | Corporate - U.S. & foreign high yield | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 42.2 | 55.5 |
Pension Benefits | Mutual funds - U.S. investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 42.8 | 15.9 |
Pension Benefits | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 77.7 | 43.3 |
Pension Benefits | Level 1 | Short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Pension Benefits | Level 1 | Preferred stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 1.1 | 1.2 |
Pension Benefits | Level 1 | Mutual funds - U.S. listed large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 33.8 | 26.2 |
Pension Benefits | Level 1 | U.S. & foreign government and government agencies and authorities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Pension Benefits | Level 1 | Corporate - U.S. & foreign investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Pension Benefits | Level 1 | Corporate - U.S. & foreign high yield | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Pension Benefits | Level 1 | Mutual funds - U.S. investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 42.8 | 15.9 |
Pension Benefits | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 680 | 724 |
Pension Benefits | Level 2 | Short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 11.1 | 10.6 |
Pension Benefits | Level 2 | Preferred stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Pension Benefits | Level 2 | Mutual funds - U.S. listed large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Pension Benefits | Level 2 | U.S. & foreign government and government agencies and authorities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 231.2 | 174.8 |
Pension Benefits | Level 2 | Corporate - U.S. & foreign investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 395.5 | 483.1 |
Pension Benefits | Level 2 | Corporate - U.S. & foreign high yield | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 42.2 | 55.5 |
Pension Benefits | Level 2 | Mutual funds - U.S. investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Pension Benefits | Assets measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 118.8 | 108.4 |
Pension Benefits | Assets measured at NAV | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 35.7 | 38.2 |
Pension Benefits | Assets measured at NAV | Private equity fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 7.3 | 7.1 |
Pension Benefits | Assets measured at NAV | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 75.8 | 63.1 |
Retirement Health Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 43.4 | 45.6 |
Retirement Health Benefits | Short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0.6 | 0.6 |
Retirement Health Benefits | Preferred stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0.1 | 0.1 |
Retirement Health Benefits | Mutual funds - U.S. listed large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 1.7 | 1.3 |
Retirement Health Benefits | U.S. & foreign government and government agencies and authorities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 11.4 | 9.1 |
Retirement Health Benefits | Corporate - U.S. & foreign investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 19.6 | 25.1 |
Retirement Health Benefits | Corporate - U.S. & foreign high yield | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 2.1 | 2.9 |
Retirement Health Benefits | Mutual funds - U.S. investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 2.1 | 0.8 |
Retirement Health Benefits | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 3.9 | 2.2 |
Retirement Health Benefits | Level 1 | Short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Retirement Health Benefits | Level 1 | Preferred stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0.1 | 0.1 |
Retirement Health Benefits | Level 1 | Mutual funds - U.S. listed large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 1.7 | 1.3 |
Retirement Health Benefits | Level 1 | U.S. & foreign government and government agencies and authorities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Retirement Health Benefits | Level 1 | Corporate - U.S. & foreign investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Retirement Health Benefits | Level 1 | Corporate - U.S. & foreign high yield | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Retirement Health Benefits | Level 1 | Mutual funds - U.S. investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 2.1 | 0.8 |
Retirement Health Benefits | Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 33.7 | 37.7 |
Retirement Health Benefits | Level 2 | Short-term investment funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0.6 | 0.6 |
Retirement Health Benefits | Level 2 | Preferred stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Retirement Health Benefits | Level 2 | Mutual funds - U.S. listed large cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Retirement Health Benefits | Level 2 | U.S. & foreign government and government agencies and authorities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 11.4 | 9.1 |
Retirement Health Benefits | Level 2 | Corporate - U.S. & foreign investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 19.6 | 25.1 |
Retirement Health Benefits | Level 2 | Corporate - U.S. & foreign high yield | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 2.1 | 2.9 |
Retirement Health Benefits | Level 2 | Mutual funds - U.S. investment grade | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0 | 0 |
Retirement Health Benefits | Assets measured at NAV | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 5.8 | 5.7 |
Retirement Health Benefits | Assets measured at NAV | Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 1.8 | 2 |
Retirement Health Benefits | Assets measured at NAV | Private equity fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | 0.3 | 0.4 |
Retirement Health Benefits | Assets measured at NAV | Real estate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total financial assets | $ 3.7 | $ 3.3 |
Retirement and Other Employe_13
Retirement and Other Employee Benefits (Estimated Future Benefit Payments From the Plans) (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 66.3 |
2023 | 51.6 |
2024 | 52.8 |
2025 | 51.7 |
2026 | 53.6 |
2027 - 2031 | 246.5 |
Total | 522.5 |
Retirement Health Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 5.1 |
2023 | 5.2 |
2024 | 5.3 |
2025 | 0 |
2026 | 0 |
2027 - 2031 | 0 |
Total | $ 15.6 |
Earnings per Common Share (Narr
Earnings per Common Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Performance Share Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding anti-dilutive shares excluded from diluted EPS calculation (in shares) | 2,063 | 58 | 20 |
Series D Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding anti-dilutive shares excluded from diluted EPS calculation (in shares) | 0 | 0 | 2,695,025 |
Earnings Per Common Share (Net
Earnings Per Common Share (Net Income, Weighted Average Common Shares Used in Calculating Basic Earnings per Common Share and Diluted EPS) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator | |||||||||||
Net income from continuing operations | $ 126.7 | $ 153.6 | $ 184.7 | $ 148.5 | $ 119.1 | $ 88 | $ 164.7 | $ 148.6 | $ 613.5 | $ 520.4 | $ 306.4 |
Less: Net loss (income) attributable to non-controlling interest | 0 | (0.9) | (4.2) | ||||||||
Net income from continuing operations attributable to stockholders | 613.5 | 519.5 | 302.2 | ||||||||
Less: Preferred stock dividends | (4.7) | (18.7) | (18.7) | ||||||||
Net income from continuing operations attributable to common stockholders, basic | 608.8 | 500.8 | 283.5 | ||||||||
Net income from continuing operations attributable to common stockholders, diluted | 608.8 | 500.8 | 283.5 | ||||||||
Less: Common stock dividends paid | (157.6) | (154.6) | (151.4) | ||||||||
Undistributed earnings, basic | 451.2 | 346.2 | 132.1 | ||||||||
Undistributed earnings, Diluted | 451.2 | 346.2 | 132.1 | ||||||||
Net income from discontinued operations | 758.9 | (77.7) | 80.4 | ||||||||
Net income (loss) attributable to common stockholders, basic | 123.6 | 882.4 | 203.4 | 158.3 | 134.5 | (34.9) | 173.5 | 150 | 1,367.7 | 423.1 | 363.9 |
Net income (loss) attributable to common stockholders, diluted | $ 123.6 | $ 882.4 | $ 203.4 | $ 158.3 | $ 134.5 | $ (34.9) | $ 173.5 | $ 150 | $ 1,367.7 | $ 423.1 | $ 363.9 |
Denominator | |||||||||||
Weighted average shares outstanding used in basic earnings per share calculations (in shares) | 59,140,861 | 60,114,670 | 61,942,969 | ||||||||
Incremental common shares from: | |||||||||||
Weighted average shares used in diluted earnings per share calculations (in shares) | 60,123,694 | 63,179,938 | 62,313,468 | ||||||||
Basic | |||||||||||
Distributed earnings - Basic (in dollars per share) | $ 2.66 | $ 2.57 | $ 2.44 | ||||||||
Undistributed earnings - Basic (in dollars per share) | 7.63 | 5.76 | 2.14 | ||||||||
Net income from continuing operations (in dollars per share) | $ 2.21 | $ 2.60 | $ 3.03 | $ 2.43 | $ 1.93 | $ 1.39 | $ 2.65 | $ 2.36 | 10.29 | 8.33 | 4.58 |
Net income (loss) from discontinued operations (in dollars per share) | 12.84 | (1.29) | 1.29 | ||||||||
Net income attributable to common stockholders (in dollars per share) | 2.16 | 14.92 | 3.34 | 2.67 | 2.27 | (0.58) | 2.87 | 2.48 | 23.13 | 7.04 | 5.87 |
Diluted | |||||||||||
Distributed earnings - Diluted (in dollars per share) | 2.62 | 2.45 | 2.43 | ||||||||
Undistributed earnings - Diluted (in dollars per share) | 7.58 | 5.77 | 2.13 | ||||||||
Net income from continuing operations (in dollars per share) | 2.20 | 2.58 | 3.01 | 2.41 | 1.91 | 1.38 | 2.59 | 2.32 | 10.20 | 8.22 | 4.56 |
Net income (loss) from discontinuing operations (in dollars per share) | 12.63 | (1.23) | 1.28 | ||||||||
Net income (loss) attributable to common stockholders (in dollars per share) | $ 2.14 | $ 14.83 | $ 3.32 | $ 2.64 | $ 2.23 | $ (0.58) | $ 2.81 | $ 2.43 | $ 22.83 | $ 6.99 | $ 5.84 |
PSUs | |||||||||||
Incremental common shares from: | |||||||||||
Incremental common shares from, share-based payment arrangements (in shares) | 403,316 | 311,712 | 332,873 | ||||||||
ESPP | |||||||||||
Incremental common shares from: | |||||||||||
Incremental common shares from, share-based payment arrangements (in shares) | 45,604 | 51,631 | 37,626 | ||||||||
Series D Preferred Stock | |||||||||||
Incremental common shares from: | |||||||||||
Incremental common shares from, MCPS (in shares) | 533,913 | 2,701,925 | 0 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) (Summary of Quarterly Results of Operations) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 2,574.9 | $ 2,637.8 | $ 2,542.3 | $ 2,432.6 | $ 2,418.1 | $ 2,376.7 | $ 2,352 | $ 2,448.7 | $ 10,187.6 | $ 9,595.5 | $ 9,569.1 |
Income before provision for income taxes | 161.8 | 191.5 | 236.6 | 193.1 | 158.9 | 112.5 | 209.3 | 100.1 | 783 | 580.8 | 454.7 |
Net income from continuing operations | 126.7 | 153.6 | 184.7 | 148.5 | 119.1 | 88 | 164.7 | 148.6 | 613.5 | 520.4 | 306.4 |
Net income (loss) attributable to common stockholders, basic | 123.6 | 882.4 | 203.4 | 158.3 | 134.5 | (34.9) | 173.5 | 150 | 1,367.7 | 423.1 | 363.9 |
Net income (loss) attributable to common stockholders, diluted | $ 123.6 | $ 882.4 | $ 203.4 | $ 158.3 | $ 134.5 | $ (34.9) | $ 173.5 | $ 150 | $ 1,367.7 | $ 423.1 | $ 363.9 |
Basic per share data: | |||||||||||
Income before provision for income taxes, basic (in dollars per share) | $ 2.82 | $ 3.24 | $ 3.88 | $ 3.26 | $ 2.68 | $ 1.87 | $ 3.47 | $ 1.65 | |||
Net income from continuing operations (in dollars per share) | 2.21 | 2.60 | 3.03 | 2.43 | 1.93 | 1.39 | 2.65 | 2.36 | $ 10.29 | $ 8.33 | $ 4.58 |
Net income attributable to common stockholders (in dollars per share) | 2.16 | 14.92 | 3.34 | 2.67 | 2.27 | (0.58) | 2.87 | 2.48 | 23.13 | 7.04 | 5.87 |
Diluted per share data: | |||||||||||
Income before provision for income taxes, diluted (in dollars per share) | 2.80 | 3.22 | 3.86 | 3.13 | 2.55 | 1.86 | 3.30 | 1.57 | |||
Net income from continuing operations (in dollars per share) | 2.20 | 2.58 | 3.01 | 2.41 | 1.91 | 1.38 | 2.59 | 2.32 | 10.20 | 8.22 | 4.56 |
Net income, diluted (in dollars per share) | $ 2.14 | $ 14.83 | $ 3.32 | $ 2.64 | $ 2.23 | $ (0.58) | $ 2.81 | $ 2.43 | $ 22.83 | $ 6.99 | $ 5.84 |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | |
Effect of Fourth Quarter Events [Line Items] | |||||
CARES Act, tax benefit | $ 79.3 | ||||
Hurricane Ida | |||||
Effect of Fourth Quarter Events [Line Items] | |||||
Impact after-tax of reportable catastrophes | $ 78 | $ 34.5 | |||
Hurricane Laura | |||||
Effect of Fourth Quarter Events [Line Items] | |||||
Impact after-tax of reportable catastrophes | $ 27.3 | $ 87 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease liability | $ 60.5 | $ 77.7 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts payable and other liabilities | Accounts payable and other liabilities | |
Lease, right of use asset | $ 47.7 | $ 67 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets (net of allowances for credit losses of $2.5 and $1.8 at December 31, 2021 and 2020, respectively) | Other assets (net of allowances for credit losses of $2.5 and $1.8 at December 31, 2021 and 2020, respectively) | |
Operating lease cost | $ 23.1 | $ 23.8 | $ 22.1 |
Cash outflows reducing the lease liability | $ 23.8 | $ 22.7 | 21.3 |
Weighted average remaining lease term | 6 years | 6 years | |
Discount rate | 4.30% | 4.00% | |
Short-term lease cost | $ 2.9 | $ 3.4 | $ 4.2 |
Letters of credit outstanding | $ 7.2 | $ 7.6 |
Commitments and Contingencies_3
Commitments and Contingencies (Schedule of Future Minimum Lease Payments for Operating Leases) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2022 | $ 17.4 | |
2023 | 13.8 | |
2024 | 10.6 | |
2025 | 6.5 | |
2026 | 5 | |
Thereafter | 16.1 | |
Total minimum future lease payments | 69.4 | |
Less: Imputed interest | (8.9) | |
Total lease liability | $ 60.5 | $ 77.7 |
Schedule I _ Summary of Inves_2
Schedule I – Summary of Investments Other – Than – Investments in Related Parties (Details) $ in Millions | Dec. 31, 2021USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | $ 8,242.4 |
Amount at which shown in balance sheet | 8,671.6 |
Fixed maturity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 6,903.9 |
Fair Value | 7,215.3 |
Amount at which shown in balance sheet | 7,215.3 |
U.S. government and government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 83 |
Fair Value | 85 |
Amount at which shown in balance sheet | 85 |
States, municipalities and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 142.2 |
Fair Value | 148.5 |
Amount at which shown in balance sheet | 148.5 |
Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 436 |
Fair Value | 437.7 |
Amount at which shown in balance sheet | 437.7 |
Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 411.1 |
Fair Value | 423 |
Amount at which shown in balance sheet | 423 |
Commercial mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 466.7 |
Fair Value | 473.7 |
Amount at which shown in balance sheet | 473.7 |
Residential mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 578.4 |
Fair Value | 601.9 |
Amount at which shown in balance sheet | 601.9 |
U.S. corporate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 3,581.2 |
Fair Value | 3,803.1 |
Amount at which shown in balance sheet | 3,803.1 |
Foreign corporate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 1,205.3 |
Fair Value | 1,242.4 |
Amount at which shown in balance sheet | 1,242.4 |
Equity securities: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 327.9 |
Fair Value | 445.7 |
Amount at which shown in balance sheet | 445.7 |
Common stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 57.5 |
Fair Value | 151.1 |
Amount at which shown in balance sheet | 151.1 |
Non-redeemable preferred stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 239.4 |
Fair Value | 261.3 |
Amount at which shown in balance sheet | 261.3 |
Mutual funds | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 31 |
Fair Value | 33.3 |
Amount at which shown in balance sheet | 33.3 |
Commercial mortgage loans on real estate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 256.5 |
Amount at which shown in balance sheet | 256.5 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 247.8 |
Amount at which shown in balance sheet | 247.8 |
Other investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Cost or Amortized Cost | 506.3 |
Amount at which shown in balance sheet | $ 506.3 |
Schedule II _ Condensed Finan_2
Schedule II – Condensed Financial Statements (Parent Only) - Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Investments: | |||||
Fixed maturity securities available for sale, at fair value (amortized cost – $879.4 and $127.6 at December 31, 2021 and 2020, respectively) | $ 7,215.3 | $ 6,815.5 | |||
Equity securities | 445.7 | 290.2 | |||
Other investments | 506.3 | 686.8 | |||
Total investments | 8,671.6 | 8,222.8 | |||
Cash and cash equivalents | 2,040.8 | 2,207.6 | |||
Accrued investment income | 62.1 | 67 | |||
Property and equipment, at cost less accumulated depreciation | 561.4 | 446.1 | |||
Other assets | 680.2 | 496.2 | |||
Assets held for sale (Note 4 to the Consolidated Financial Statements) | 1,076.9 | 13,218.7 | |||
Total assets | 33,911.5 | 44,649.9 | |||
Liabilities | |||||
Accounts payable and other liabilities | 3,032.5 | 2,640.5 | |||
Debt | 2,202.5 | 2,252.9 | |||
Total liabilities | 28,421.8 | 38,695.1 | |||
Commitments and Contingencies | |||||
Stockholders’ equity | |||||
6.50% Series D mandatory convertible preferred stock, par value $1.00 per share, zero and 2,875,000 shares authorized, issued and outstanding at December 31, 2021 and 2020, respectively (1) | [1] | 0 | 2.9 | ||
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 58,050,202 and 62,967,808 shares issued and 55,754,113 and 57,967,808 shares outstanding at December 31, 2021 and 2020, respectively | 0.7 | 0.6 | |||
Additional paid-in capital | 1,695 | 1,956.8 | |||
Retained earnings | 4,066.8 | 3,548.7 | |||
Accumulated other comprehensive income | (150) | 709.8 | |||
Treasury stock, at cost; 2,296,089 and 5,000,000 shares at December 31, 2021 and 2020, respectively | (122.8) | (267.4) | |||
Total Assurant, Inc. stockholders’ equity | 5,489.7 | 5,951.4 | |||
Total liabilities and equity | 33,911.5 | $ 44,649.9 | |||
Fixed maturity securities available for sale, amortized cost | $ 6,903.9 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |||
Common stock shares issued (in shares) | 58,050,202 | 62,967,808 | |||
Common stock, shares outstanding (in shares) | 55,754,113 | 57,967,808 | 59,945,893 | 61,908,979 | |
Treasury stock, at cost (in shares) | 2,296,089 | 5,000,000 | |||
Parent Company | |||||
Investments: | |||||
Equity investment in subsidiaries | $ 6,415.7 | $ 6,562.9 | |||
Fixed maturity securities available for sale, at fair value (amortized cost – $879.4 and $127.6 at December 31, 2021 and 2020, respectively) | 881.9 | 139.2 | |||
Equity securities | 3.9 | 4.7 | |||
Short-term investments | 84.7 | 8.1 | |||
Other investments | 109.6 | 108.7 | |||
Total investments | 7,495.8 | 6,823.6 | |||
Cash and cash equivalents | 82.9 | 277.4 | |||
Receivable from subsidiaries, net | 77.8 | 47.4 | |||
Income tax receivable | 11.4 | 41.4 | |||
Accrued investment income | 5.1 | 1.2 | |||
Property and equipment, at cost less accumulated depreciation | 228.9 | 142.8 | |||
Other assets | 83.8 | 68 | |||
Assets held for sale (Note 4 to the Consolidated Financial Statements) | 12.1 | 1,107.4 | |||
Total assets | 7,997.8 | 8,509.2 | |||
Liabilities | |||||
Accounts payable and other liabilities | 305.6 | 304.9 | |||
Debt | 2,202.5 | 2,252.9 | |||
Total liabilities | 2,508.1 | 2,557.8 | |||
Commitments and Contingencies | |||||
Stockholders’ equity | |||||
6.50% Series D mandatory convertible preferred stock, par value $1.00 per share, zero and 2,875,000 shares authorized, issued and outstanding at December 31, 2021 and 2020, respectively (1) | 0 | 2.9 | |||
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 58,050,202 and 62,967,808 shares issued and 55,754,113 and 57,967,808 shares outstanding at December 31, 2021 and 2020, respectively | 0.7 | 0.6 | |||
Additional paid-in capital | 1,695 | 1,956.8 | |||
Retained earnings | 4,066.8 | 3,548.7 | |||
Accumulated other comprehensive income | (150) | 709.8 | |||
Treasury stock, at cost; 2,296,089 and 5,000,000 shares at December 31, 2021 and 2020, respectively | (122.8) | (267.4) | |||
Total Assurant, Inc. stockholders’ equity | 5,489.7 | 5,951.4 | |||
Total liabilities and equity | 7,997.8 | 8,509.2 | |||
Fixed maturity securities available for sale, amortized cost | $ 879.4 | $ 127.6 | |||
Preferred stock, dividend rate | 6.50% | 6.50% | |||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | |||
Preferred stock, shares authorized (in shares) | 0 | 2,875,000 | |||
Preferred stock, shares issued (in shares) | 0 | 2,875,000 | |||
Preferred stock, shares outstanding (in shares) | 0 | 2,875,000 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |||
Common stock shares issued (in shares) | 58,050,202 | 62,967,808 | |||
Common stock, shares outstanding (in shares) | 55,754,113 | 57,967,808 | |||
Treasury stock, at cost (in shares) | 2,296,089 | 5,000,000 | |||
[1] | Each outstanding share of mandatory convertible preferred stock converted to common stock in March 2021. Refer to Note 20 for further information. |
Schedule II _ Condensed Finan_3
Schedule II – Condensed Financial Statements (Parent Only) - Balance Sheet (Additional Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Fixed maturity securities available for sale, amortized cost | $ 6,903.9 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | ||
Common stock shares issued (in shares) | 58,050,202 | 62,967,808 | ||
Common stock, shares outstanding (in shares) | 55,754,113 | 57,967,808 | 59,945,893 | 61,908,979 |
Treasury stock, at cost (in shares) | 2,296,089 | 5,000,000 | ||
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Fixed maturity securities available for sale, amortized cost | $ 879.4 | $ 127.6 | ||
Preferred stock, dividend rate | 6.50% | 6.50% | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | ||
Preferred stock, shares authorized (in shares) | 0 | 2,875,000 | ||
Preferred stock, shares issued (in shares) | 0 | 2,875,000 | ||
Preferred stock, shares outstanding (in shares) | 0 | 2,875,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | ||
Common stock shares issued (in shares) | 58,050,202 | 62,967,808 | ||
Common stock, shares outstanding (in shares) | 55,754,113 | 57,967,808 | ||
Treasury stock, at cost (in shares) | 2,296,089 | 5,000,000 |
Schedule II _ Condensed Finan_4
Schedule II – Condensed Financial Statements (Parent Only) - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | |||||||||||
Net investment income | $ 314.4 | $ 285.6 | $ 383.2 | ||||||||
Net realized (losses) gains on investments and fair value changes to equity securities | 128.2 | (8.2) | 57 | ||||||||
Fees and other income | 1,172.9 | 1,042.3 | 1,170.1 | ||||||||
Total revenues | $ 2,574.9 | $ 2,637.8 | $ 2,542.3 | $ 2,432.6 | $ 2,418.1 | $ 2,376.7 | $ 2,352 | $ 2,448.7 | 10,187.6 | 9,595.5 | 9,569.1 |
Expenses | |||||||||||
Interest expense | 111.8 | 104.5 | 110.6 | ||||||||
Loss on extinguishment of debt | 20.7 | 0 | 31.4 | ||||||||
Total benefits, losses and expenses | 9,404.6 | 9,014.7 | 9,114.4 | ||||||||
Income from continuing operations before income tax expense | 161.8 | 191.5 | 236.6 | 193.1 | 158.9 | 112.5 | 209.3 | 100.1 | 783 | 580.8 | 454.7 |
Benefit for income taxes | (169.5) | (60.4) | (148.3) | ||||||||
Net income from continuing operations | $ 126.7 | $ 153.6 | $ 184.7 | $ 148.5 | $ 119.1 | $ 88 | $ 164.7 | $ 148.6 | 613.5 | 520.4 | 306.4 |
Net income (loss) from discontinued operations (Note 4 to the Consolidated Financial Statements) | 758.9 | (77.7) | 80.4 | ||||||||
Net income | 1,372.4 | 442.7 | 386.8 | ||||||||
Less: Net income attributable to non-controlling interest | 0 | (0.9) | (4.2) | ||||||||
Net income attributable to stockholders | 1,372.4 | 441.8 | 382.6 | ||||||||
Parent Company | |||||||||||
Revenues | |||||||||||
Net investment income | 12.6 | 3.4 | 10.8 | ||||||||
Net realized (losses) gains on investments and fair value changes to equity securities | (1.3) | 4.2 | 1.1 | ||||||||
Fees and other income | 290.5 | 231.7 | 198.6 | ||||||||
Equity in net income of subsidiaries | 816.2 | 691.7 | 518.4 | ||||||||
Total revenues | 1,118 | 931 | 728.9 | ||||||||
Expenses | |||||||||||
General and administrative expenses | 426.8 | 376.9 | 333.9 | ||||||||
Interest expense | 111.8 | 104.5 | 110.6 | ||||||||
Loss on extinguishment of debt | 20.7 | 0 | 31.4 | ||||||||
Total benefits, losses and expenses | 559.3 | 481.4 | 475.9 | ||||||||
Income from continuing operations before income tax expense | 558.7 | 449.6 | 253 | ||||||||
Benefit for income taxes | (54.8) | (70.8) | (53.4) | ||||||||
Net income from continuing operations | 613.5 | 520.4 | 306.4 | ||||||||
Net income (loss) from discontinued operations (Note 4 to the Consolidated Financial Statements) | 758.9 | (77.7) | 80.4 | ||||||||
Net income | 1,372.4 | 442.7 | 386.8 | ||||||||
Less: Net income attributable to non-controlling interest | 0 | (0.9) | (4.2) | ||||||||
Net income attributable to stockholders | $ 1,372.4 | $ 441.8 | $ 382.6 |
Schedule II _ Condensed Finan_5
Schedule II – Condensed Financial Statements (Parent Only) - Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | $ 1,372.4 | $ 442.7 | $ 386.8 | |
Other comprehensive (loss) income: | ||||
Change in unrealized gains on securities, net of taxes of $1.2, $— and $(4.3) for the years ended December 31, 2021, 2020 and 2019, respectively | [1] | (841) | 225.6 | 555.9 |
Change in unrealized gains on derivative transactions, net of taxes of $0.6, $0.6 and $0.4 for the years ended December 31, 2021, 2020 and 2019, respectively | (2.3) | (2.4) | (1.3) | |
Change in foreign currency translation, net of taxes of $(0.4), $— and $— for the years ended December 31, 2021, 2020 and 2019, respectively | (31.3) | 63.3 | 16.7 | |
Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, net of taxes of $(3.9), $(3.2) and $1.1 for the years ended December 31, 2021, 2020 and 2019, respectively | [2] | 14.8 | 11.8 | (4.4) |
Total other comprehensive (loss) income | (859.8) | 298.3 | 566.9 | |
Total comprehensive income | 512.6 | 741 | 953.7 | |
Less: Comprehensive income attributable to non-controlling interest | 0 | (0.9) | (4.2) | |
Total comprehensive income attributable to common stockholders | 512.6 | 740.1 | 949.5 | |
Change in unrealized gains on securities, tax | 233.7 | (64) | (153.2) | |
Change in unrealized gains on derivative transactions, tax | 0.7 | 0.6 | 0.4 | |
Change in foreign currency translation, tax | 3.1 | 3.8 | (1.1) | |
Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, tax | (3.8) | (3.2) | 1.1 | |
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income (loss) | 1,372.4 | 442.7 | 386.8 | |
Other comprehensive (loss) income: | ||||
Change in unrealized gains on securities, net of taxes of $1.2, $— and $(4.3) for the years ended December 31, 2021, 2020 and 2019, respectively | (7.8) | 0.1 | 16.3 | |
Change in unrealized gains on derivative transactions, net of taxes of $0.6, $0.6 and $0.4 for the years ended December 31, 2021, 2020 and 2019, respectively | (2.3) | (2.3) | (1.3) | |
Change in foreign currency translation, net of taxes of $(0.4), $— and $— for the years ended December 31, 2021, 2020 and 2019, respectively | 1.4 | (0.1) | 0 | |
Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, net of taxes of $(3.9), $(3.2) and $1.1 for the years ended December 31, 2021, 2020 and 2019, respectively | 14.6 | 11.9 | (4.2) | |
Change in subsidiary other comprehensive income | (865.7) | 288.7 | 556.1 | |
Total other comprehensive (loss) income | (859.8) | 298.3 | 566.9 | |
Total comprehensive income | 512.6 | 741 | 953.7 | |
Less: Comprehensive income attributable to non-controlling interest | 0 | (0.9) | (4.2) | |
Total comprehensive income attributable to common stockholders | 512.6 | 740.1 | 949.5 | |
Change in unrealized gains on securities, tax | 1.2 | 0 | (4.3) | |
Change in unrealized gains on derivative transactions, tax | 0.6 | 0.6 | 0.4 | |
Change in foreign currency translation, tax | (0.4) | 0 | 0 | |
Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, tax | $ (3.9) | $ (3.2) | $ 1.1 | |
[1] | The year ended December 31, 2021 includes $0.3 million of foreign currency translation adjustments and $605.7 million of net unrealized gains on investments, for a total $606.0 million, net of taxes, that were recognized through income from discontinued operations upon the sale of the disposed Global Preneed business. Refer to Note 4 for further information. | |||
[2] | Change in year ended December 31, 2020 includes the prior service credit resulting from the February 2020 amendment of the Retirement Health Benefits Plan. Refer to Note 24 for further information. |
Schedule II _ Condensed Finan_6
Schedule II – Condensed Financial Statements (Parent Only) - Comprehensive Income (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Change in unrealized gains on securities, tax | $ 233.7 | $ (64) | $ (153.2) |
Change in unrealized gains on derivative transactions, tax | 0.7 | 0.6 | 0.4 |
Change in foreign currency translation, tax | 3.1 | 3.8 | (1.1) |
Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, tax | (3.8) | (3.2) | 1.1 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Change in unrealized gains on securities, tax | 1.2 | 0 | (4.3) |
Change in unrealized gains on derivative transactions, tax | 0.6 | 0.6 | 0.4 |
Change in foreign currency translation, tax | (0.4) | 0 | 0 |
Amortization of pension and postretirement unrecognized net periodic benefit cost and change in funded status, tax | $ (3.9) | $ (3.2) | $ 1.1 |
Schedule II _ Condensed Finan_7
Schedule II – Condensed Financial Statements (Parent Only) - Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating activities | ||||
Net cash provided by operating activities - discontinued operations | $ 151.2 | $ 227.7 | $ 285.1 | |
Net cash provided by operating activities | 781.7 | 1,342 | 1,413.4 | |
Sales of: | ||||
Fixed maturity securities available for sale | 1,361.8 | 515.4 | 1,729.8 | |
Equity securities | 30.4 | 23.8 | 77.4 | |
Other invested assets | 141.1 | 113.1 | 128.9 | |
Subsidiary, net of cash transferred | [1] | 1,315.6 | 0 | 0 |
Maturities, calls, prepayments, and scheduled redemption of: | ||||
Fixed maturity securities available for sale | 971 | 804.8 | 541.2 | |
Purchases of: | ||||
Fixed maturity securities available for sale | (3,007.7) | (1,503.9) | (2,183) | |
Equity securities | (57.7) | (31.5) | (73.2) | |
Other invested assets | [2] | (71.6) | (99.5) | (50.8) |
Property and equipment and other | (187.4) | (121.2) | (110.3) | |
Change in short-term investments | (65.2) | 68.8 | (39) | |
Net cash used in investing activities - discontinued operations | (145.2) | (215.8) | (282.9) | |
Net cash provided by (used in) investing activities | 157.6 | (735.2) | (619.8) | |
Financing activities | ||||
Issuance of debt, net of issuance costs (Note 19) | 347.2 | 243.7 | 346.7 | |
Borrowing under secured revolving credit facility | 0 | 200 | 0 | |
Payments on secured revolving credit facility | 0 | (200) | 0 | |
Acquisition of common stock | (839.3) | (297) | (271.8) | |
Preferred stock dividends paid | (4.7) | (18.7) | (18.7) | |
Common stock dividends paid | (157.6) | (154.6) | (151.4) | |
Employee stock purchases and withholdings | (15.6) | (10.3) | 19.7 | |
Proceeds from transfer of rights to ACA recoverables (Note 4) | 0 | 0 | 26.7 | |
Proceeds repaid on transfer of rights to ACA recoverable | 0 | (26.7) | 0 | |
Net cash (used in) provided by financing activities | (1,089.8) | (264.8) | (179.2) | |
Cash and cash equivalents at beginning of period | 2,228.6 | 1,867.1 | 1,254 | |
Cash and cash equivalents at end of period | 2,054.8 | 2,228.6 | 1,867.1 | |
Cash and cash equivalents of continuing operations at end of period | 2,040.8 | 2,207.6 | 1,858.1 | |
Parent Company | ||||
Operating activities | ||||
Net cash provided by operating activities - discontinued operations | 11.7 | 47.9 | 57.6 | |
Net cash provided by operating activities - continuing operations | 385.5 | 596.1 | 492.6 | |
Net cash provided by operating activities | 397.2 | 644 | 550.2 | |
Sales of: | ||||
Fixed maturity securities available for sale | 575 | 165 | 363.3 | |
Equity securities | 0.8 | 1.6 | 5.9 | |
Other invested assets | 4.7 | 9.6 | 15.8 | |
Property, buildings and equipment | 0.1 | 37.3 | 3.3 | |
Subsidiary, net of cash transferred | 1,342.9 | 0 | 0 | |
Maturities, calls, prepayments, and scheduled redemption of: | ||||
Fixed maturity securities available for sale | 70.9 | 17.4 | 16.2 | |
Purchases of: | ||||
Fixed maturity securities available for sale | (1,231.4) | (45.7) | (328.8) | |
Equity securities | 0 | 0 | (5.7) | |
Other invested assets | (0.7) | (3.6) | (15.2) | |
Property and equipment and other | (123.1) | (75.8) | (56.2) | |
Capital contributed to subsidiaries | (67) | (579.2) | (74.8) | |
Return of capital contributions from subsidiaries | 2.5 | 139.2 | 24.9 | |
Change in short-term investments | (76.6) | (5.4) | 0 | |
Net cash used in investing activities - discontinued operations | 0 | (20.1) | (3.5) | |
Net cash provided by (used in) investing activities | 498.1 | (359.7) | (54.8) | |
Financing activities | ||||
Issuance of debt, net of issuance costs (Note 19) | 347.2 | 243.7 | 346.7 | |
Borrowing under secured revolving credit facility | 0 | 200 | 0 | |
Payments on secured revolving credit facility | 0 | (200) | 0 | |
Repayment of debt, including extinguishment | (419.8) | 0 | (379.6) | |
Acquisition of common stock | (839.3) | (297) | (271.8) | |
Preferred stock dividends paid | (4.7) | (18.7) | (18.7) | |
Common stock dividends paid | (157.6) | (154.6) | (151.3) | |
Employee stock purchases and withholdings | (15.6) | (10.3) | 13.3 | |
Proceeds from transfer of rights to ACA recoverables (Note 4) | 0 | 0 | 26.7 | |
Proceeds repaid on transfer of rights to ACA recoverable | 0 | (26.7) | 0 | |
Net cash (used in) provided by financing activities | (1,089.8) | (263.6) | (434.7) | |
Change in cash and cash equivalents | (194.5) | 20.7 | 60.7 | |
Cash and cash equivalents at beginning of period | 277.4 | 256.7 | 196 | |
Cash and cash equivalents at end of period | 82.9 | 277.4 | 256.7 | |
Less: Cash and cash equivalents of discontinued operations at end of period | 0 | (26.7) | (53.9) | |
Cash and cash equivalents of continuing operations at end of period | $ 82.9 | $ 250.7 | $ 202.8 | |
[1] | Relates to the sale of the disposed Global Preneed business, net of $27.3 million of cash transferred. For additional information, refer to Note 4. | |||
[2] | The year ended December 31, 2020 includes loan to Iké Grupo. Refer to Note 4 for additional information. |
Schedule II _ Condensed Finan_8
Schedule II – Condensed Financial Statements (Parent Only) - Cash Flows (Additional Information) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Subsidiary, net of cash transferred | [1] | $ 1,315.6 | $ 0 | $ 0 |
Parent Company | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Subsidiary, net of cash transferred | $ 1,342.9 | $ 0 | $ 0 | |
[1] | Relates to the sale of the disposed Global Preneed business, net of $27.3 million of cash transferred. For additional information, refer to Note 4. |
Schedule III - Supplementary _2
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred acquisition costs | $ 8,811 | $ 7,388 | $ 6,121.5 |
Future policy benefits and expenses | 413.2 | 1,358.5 | 1,372.5 |
Unearned premiums | 18,623.7 | 17,293.1 | 16,560.2 |
Claims and benefits payable | 1,595.9 | 1,610.3 | 1,613.1 |
Premium revenue | 8,572.1 | 8,275.8 | 7,958.8 |
Net investment income | 314.4 | 285.6 | 383.2 |
Benefits claims, losses and settlement expenses | 2,195.7 | 2,264.9 | 2,385.7 |
Amortization of deferred acquisition costs | 3,268 | 2,756.4 | 2,103.9 |
Other operating expenses | 3,808.4 | 3,888.9 | 4,482.8 |
Property and Casualty premiums written | 2,735.4 | 2,878.8 | 2,917.6 |
Global Lifestyle | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred acquisition costs | 8,654.2 | 7,236 | 5,985.6 |
Future policy benefits and expenses | 80.1 | 87.4 | 97.5 |
Unearned premiums | 17,102 | 15,818 | 15,115.8 |
Claims and benefits payable | 708.2 | 732.2 | 729.5 |
Premium revenue | 6,720.3 | 6,442.2 | 6,073.7 |
Net investment income | 201.3 | 194.3 | 250.8 |
Benefits claims, losses and settlement expenses | 1,333.1 | 1,412.6 | 1,516.2 |
Amortization of deferred acquisition costs | 3,034.4 | 2,530.8 | 1,882.4 |
Other operating expenses | 2,966.3 | 3,024.2 | 3,410.9 |
Property and Casualty premiums written | 865.9 | 1,028 | 1,083.9 |
Global Housing | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred acquisition costs | 156.8 | 152.2 | 136.1 |
Future policy benefits and expenses | 0 | 0 | 0 |
Unearned premiums | 1,516 | 1,467.4 | 1,436 |
Claims and benefits payable | 764.7 | 651.9 | 651.6 |
Premium revenue | 1,851.8 | 1,833.6 | 1,885.1 |
Net investment income | 81 | 72.8 | 95.2 |
Benefits claims, losses and settlement expenses | 862.6 | 852.1 | 869.5 |
Amortization of deferred acquisition costs | 233.6 | 225.6 | 221.5 |
Other operating expenses | 671.4 | 677.3 | 711.6 |
Property and Casualty premiums written | 1,869.5 | 1,850.8 | 1,833.7 |
Corporate and Other | |||
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Line Items] | |||
Deferred acquisition costs | 0 | (0.2) | (0.2) |
Future policy benefits and expenses | 333.1 | 1,271.1 | 1,275 |
Unearned premiums | 5.7 | 7.7 | 8.4 |
Claims and benefits payable | 123 | 226.2 | 232 |
Premium revenue | 0 | 0 | 0 |
Net investment income | 32.1 | 18.5 | 37.2 |
Benefits claims, losses and settlement expenses | 0 | 0.2 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 |
Other operating expenses | 170.7 | 187.4 | 360.3 |
Property and Casualty premiums written | $ 0 | $ 0 | $ 0 |
Schedule IV _ Reinsurance (Deta
Schedule IV – Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reinsurance [Line Items] | |||
Life insurance in force, gross | $ 7,431.3 | $ 8,270.1 | $ 9,026.1 |
Life insurance in force, ceded to other companies | 4,953.8 | 5,842.4 | 5,560.4 |
Life insurance in force, assumed other companies | 2.5 | 3.8 | 2.8 |
Life insurance in force, net | $ 2,480 | $ 2,431.5 | $ 3,468.5 |
Life insurance in force, percentage of amount assumed to net | 0.10% | 0.20% | 0.10% |
Premiums, direct amount | $ 15,910.1 | $ 14,912 | $ 14,021.2 |
Premiums, ceded to other companies | 7,506.5 | 6,769.5 | 6,275.2 |
Premiums, assumed from other companies | 168.5 | 133.3 | 212.8 |
Net earned premiums | $ 8,572.1 | $ 8,275.8 | $ 7,958.8 |
Premiums, percentage of amount assumed to net | 2.00% | 1.60% | 2.70% |
Direct policyholder benefits | $ 6,271.4 | $ 5,672.9 | $ 5,534.9 |
Benefits, ceded to other companies | 4,214.8 | 3,530.3 | 3,362.1 |
Benefits, assumed from other companies | 139.1 | 122.3 | 212.9 |
Net policyholder benefits | $ 2,195.7 | $ 2,264.9 | $ 2,385.7 |
Benefits, percentage of amount assumed to net | 6.30% | 5.40% | 8.90% |
Life insurance | |||
Reinsurance [Line Items] | |||
Premiums, direct amount | $ 199.6 | $ 172.9 | $ 223.5 |
Premiums, ceded to other companies | 161 | 128.9 | 175.9 |
Premiums, assumed from other companies | 0.2 | 0.2 | 0.2 |
Net earned premiums | $ 38.8 | $ 44.2 | $ 47.8 |
Premiums, percentage of amount assumed to net | 0.40% | 0.40% | 0.40% |
Direct policyholder benefits | $ 180.6 | $ 49.8 | $ 67.9 |
Benefits, ceded to other companies | 163.7 | 34.9 | 49.9 |
Benefits, assumed from other companies | 0 | (0.7) | (0.4) |
Net policyholder benefits | $ 16.9 | $ 14.2 | $ 17.6 |
Benefits, percentage of amount assumed to net | (0.20%) | (4.60%) | (2.40%) |
Accident and health insurance | |||
Reinsurance [Line Items] | |||
Premiums, direct amount | $ 539.4 | $ 494.1 | $ 538.3 |
Premiums, ceded to other companies | 364.9 | 317.4 | 361.3 |
Premiums, assumed from other companies | 1.4 | 0.2 | 0.3 |
Net earned premiums | $ 175.9 | $ 176.9 | $ 177.3 |
Premiums, percentage of amount assumed to net | 0.80% | 0.10% | 0.20% |
Direct policyholder benefits | $ 222.2 | $ 161.6 | $ 217.7 |
Benefits, ceded to other companies | 205 | 111.2 | 193.5 |
Benefits, assumed from other companies | 0 | (4) | 0 |
Net policyholder benefits | $ 17.2 | $ 46.4 | $ 24.2 |
Benefits, percentage of amount assumed to net | (0.30%) | (8.70%) | 0.20% |
Property and liability insurance | |||
Reinsurance [Line Items] | |||
Premiums, direct amount | $ 15,171.1 | $ 14,245 | $ 13,259.4 |
Premiums, ceded to other companies | 6,980.6 | 6,323.2 | 5,738 |
Premiums, assumed from other companies | 166.9 | 132.9 | 212.3 |
Net earned premiums | $ 8,357.4 | $ 8,054.7 | $ 7,733.7 |
Premiums, percentage of amount assumed to net | 2.00% | 1.60% | 2.70% |
Direct policyholder benefits | $ 5,868.6 | $ 5,461.5 | $ 5,249.3 |
Benefits, ceded to other companies | 3,846.1 | 3,384.2 | 3,118.7 |
Benefits, assumed from other companies | 139.1 | 127 | 213.3 |
Net policyholder benefits | $ 2,161.6 | $ 2,204.3 | $ 2,343.9 |
Benefits, percentage of amount assumed to net | 6.40% | 5.80% | 9.10% |
Schedule V _ Valuation and Qu_2
Schedule V – Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 71.5 | $ 96.2 | $ 44.5 |
Charged to Costs and Expenses | (6) | (39.1) | 54 |
Charged to Other Accounts | (0.3) | 22.2 | 0 |
Deductions | 22.1 | 7.8 | 2.3 |
Balance at End of Year | 43.1 | 71.5 | 96.2 |
Valuation allowance for foreign deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 27.6 | 76.6 | 26.4 |
Charged to Costs and Expenses | (2.5) | (46.7) | 50.2 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 2.3 | 0 |
Balance at End of Year | 25.1 | 27.6 | 76.6 |
Available for sale fixed maturity securities | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1.2 | 0 | |
Charged to Costs and Expenses | (1.2) | 1.2 | |
Charged to Other Accounts | 0 | 0 | |
Deductions | 0 | 0 | |
Balance at End of Year | 0 | 1.2 | 0 |
Commercial mortgage loans on real estate | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1.6 | 0.4 | 0.4 |
Charged to Costs and Expenses | (0.5) | 1.2 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 1.1 | 1.6 | 0.4 |
Iké Loan | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1.4 | 0 | |
Charged to Costs and Expenses | (1.4) | 1.4 | |
Charged to Other Accounts | 0 | 0 | |
Deductions | 0 | 0 | |
Balance at End of Year | 0 | 1.4 | 0 |
Premiums and accounts receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 13.3 | 14.7 | 15.8 |
Charged to Costs and Expenses | (1.4) | 2.7 | 1.2 |
Charged to Other Accounts | (0.3) | 1.4 | 0 |
Deductions | 2.2 | 5.5 | 2.3 |
Balance at End of Year | 9.4 | 13.3 | 14.7 |
Dealer loan receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1.8 | 1.7 | 1.6 |
Charged to Costs and Expenses | 2.5 | 0 | 0.1 |
Charged to Other Accounts | 0 | 0.1 | 0 |
Deductions | 1.8 | 0 | 0 |
Balance at End of Year | 2.5 | 1.8 | 1.7 |
Reinsurance recoverables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 24.6 | 2.8 | 0.3 |
Charged to Costs and Expenses | (1.5) | 1.1 | 2.5 |
Charged to Other Accounts | 0 | 20.7 | 0 |
Deductions | 18.1 | 0 | 0 |
Balance at End of Year | $ 5 | $ 24.6 | $ 2.8 |