☒
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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☐
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Delaware
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001-31978
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39-1126612
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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Title of Each Class
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Trading Symbol(s)
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Name of Each Exchange on Which Registered
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Common Stock, $0.01 Par Value
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AIZ
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New York Stock Exchange
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6.50% Series D Mandatory Convertible Preferred Stock, $1.00 Par Value
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AIZP
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New York Stock Exchange
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Item
Number
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Page
Number
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1.
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2.
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3.
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4.
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1.
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1A.
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2.
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6.
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June 30, 2020
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December 31, 2019
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||||
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(in millions, except number of
shares and per share amounts)
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||||||
Assets
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|||||||
Investments:
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||||
Fixed maturity securities available for sale, at fair value (amortized cost - $11,050.4 and $11,064.8 at June 30, 2020 and December 31, 2019, respectively)
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$
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12,639.6
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$
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12,322.4
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Equity securities at fair value
|
376.3
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|
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388.5
|
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Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $4.1 at June 30, 2020)
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790.1
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815.0
|
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Short-term investments
|
207.8
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402.5
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Other investments (net of allowances for credit losses of $1.4 at June 30, 2020)
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632.4
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638.9
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Total investments
|
14,646.2
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14,567.3
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Cash and cash equivalents
|
2,137.5
|
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1,867.1
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|
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Premiums and accounts receivable (net of allowances for credit losses of $16.8 at June 30, 2020)
|
1,475.4
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1,692.8
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Reinsurance recoverables (net of allowances for credit losses of $26.8 at June 30, 2020)
|
9,581.9
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9,593.4
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Accrued investment income
|
143.0
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|
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131.1
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Deferred acquisition costs
|
7,003.2
|
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6,668.0
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Property and equipment, net
|
450.1
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|
|
433.7
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Goodwill
|
2,441.4
|
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2,343.4
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Value of business acquired
|
1,539.9
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2,004.3
|
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Other intangible assets, net
|
582.1
|
|
|
540.2
|
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Other assets (net of allowances for credit losses of $1.9 at June 30, 2020)
|
708.1
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|
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590.1
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Assets held in separate accounts
|
1,853.6
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1,839.7
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Assets of consolidated investment entities (1)
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1,670.8
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2,020.1
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Total assets
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$
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44,233.2
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$
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44,291.2
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Liabilities
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|
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Future policy benefits and expenses
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$
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9,817.4
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$
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9,807.3
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Unearned premiums
|
16,557.2
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16,603.6
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Claims and benefits payable
|
2,669.1
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|
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2,687.7
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Commissions payable
|
473.7
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|
540.5
|
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Reinsurance balances payable
|
364.8
|
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358.5
|
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Funds held under reinsurance
|
346.8
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319.4
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Accounts payable and other liabilities
|
2,417.3
|
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|
2,758.5
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Debt
|
2,208.0
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2,006.9
|
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Liabilities related to separate accounts
|
1,853.6
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1,839.7
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Liabilities of consolidated investment entities (1)
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1,540.8
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1,687.0
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Total liabilities
|
38,248.7
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38,609.1
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Commitments and contingencies (Note 20)
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Stockholders’ equity
|
|
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|
||||
6.50% Series D mandatory convertible preferred stock, par value $1.00 per share, 2,875,000 shares authorized, issued and outstanding at June 30, 2020 and December 31, 2019, respectively
|
2.9
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2.9
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Common stock, par value $0.01 per share, 800,000,000 shares authorized, 161,968,591 and 161,607,866 shares issued and 59,571,651 and 59,945,893 shares outstanding at June 30, 2020 and December 31, 2019, respectively
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1.6
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1.6
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Additional paid-in capital
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4,550.4
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4,537.7
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Retained earnings
|
6,194.4
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5,966.4
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Accumulated other comprehensive income
|
568.9
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|
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411.5
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Treasury stock, at cost; 102,396,940 and 101,661,973 shares at June 30, 2020 and December 31, 2019, respectively
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(5,350.4
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)
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(5,267.3
|
)
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Total Assurant, Inc. stockholders’ equity
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5,967.8
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5,652.8
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Non-controlling interests
|
16.7
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29.3
|
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Total equity
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5,984.5
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5,682.1
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Total liabilities and equity
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$
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44,233.2
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$
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44,291.2
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(1)
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The following table presents information on assets and liabilities related to consolidated investment entities as of June 30, 2020 and December 31, 2019.
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June 30, 2020
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December 31, 2019
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||||
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(in millions)
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||||||
Assets
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Cash and cash equivalents
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$
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14.9
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$
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32.9
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Investments, at fair value
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1,635.5
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1,957.9
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Other receivables
|
20.4
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29.3
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Total assets
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$
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1,670.8
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$
|
2,020.1
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Liabilities
|
|
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||||
Collateralized loan obligation notes, at fair value
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1,505.0
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1,603.1
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Other liabilities
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35.8
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83.9
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Total liabilities
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$
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1,540.8
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$
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1,687.0
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||
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2020
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2019
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2020
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2019
|
||||||||
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(in millions, except number of shares and per share amounts)
|
||||||||||||||
Revenues
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Net earned premiums
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$
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2,036.4
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$
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2,032.7
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$
|
4,120.2
|
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$
|
3,937.1
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Fees and other income
|
271.5
|
|
|
336.1
|
|
|
688.4
|
|
|
664.4
|
|
||||
Net investment income
|
137.2
|
|
|
154.2
|
|
|
293.2
|
|
|
320.5
|
|
||||
Net realized gains (losses) on investments (including $(7.8), $(0.6), $(13.1), and $(0.9) of impairment losses for the three and six months ended June 30, 2020 and 2019, respectively)
|
24.1
|
|
|
17.8
|
|
|
(71.2
|
)
|
|
46.6
|
|
||||
Amortization of deferred gains on disposal of businesses
|
2.4
|
|
|
4.7
|
|
|
6.6
|
|
|
12.5
|
|
||||
Total revenues
|
2,471.6
|
|
|
2,545.5
|
|
|
5,037.2
|
|
|
4,981.1
|
|
||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
592.1
|
|
|
687.0
|
|
|
1,199.3
|
|
|
1,301.7
|
|
||||
Amortization of deferred acquisition costs and value of business acquired
|
885.3
|
|
|
815.8
|
|
|
1,799.5
|
|
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1,593.1
|
|
||||
Underwriting, general and administrative expenses
|
736.2
|
|
|
823.7
|
|
|
1,644.3
|
|
|
1,623.6
|
|
||||
Iké net losses (Note 5)
|
4.5
|
|
|
9.2
|
|
|
5.9
|
|
|
9.4
|
|
||||
Interest expense
|
26.7
|
|
|
26.5
|
|
|
52.2
|
|
|
53.0
|
|
||||
Total benefits, losses and expenses
|
2,244.8
|
|
|
2,362.2
|
|
|
4,701.2
|
|
|
4,580.8
|
|
||||
Income before provision for income taxes
|
226.8
|
|
|
183.3
|
|
|
336.0
|
|
|
400.3
|
|
||||
Provision for income taxes
|
48.4
|
|
|
40.7
|
|
|
1.8
|
|
|
89.1
|
|
||||
Net income
|
178.4
|
|
|
142.6
|
|
|
334.2
|
|
|
311.2
|
|
||||
Less: Net (income) loss attributable to non-controlling interests
|
(0.3
|
)
|
|
1.5
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||||
Net income attributable to stockholders
|
178.1
|
|
|
144.1
|
|
|
332.8
|
|
|
309.8
|
|
||||
Less: Preferred stock dividends
|
(4.6
|
)
|
|
(4.6
|
)
|
|
(9.3
|
)
|
|
(9.3
|
)
|
||||
Net income attributable to common stockholders
|
$
|
173.5
|
|
|
$
|
139.5
|
|
|
$
|
323.5
|
|
|
$
|
300.5
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings Per Common Share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
2.87
|
|
|
$
|
2.24
|
|
|
$
|
5.35
|
|
|
$
|
4.82
|
|
Diluted
|
$
|
2.81
|
|
|
$
|
2.21
|
|
|
$
|
5.24
|
|
|
$
|
4.73
|
|
Share Data
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding used in basic per common share calculations
|
60,363,577
|
|
|
62,222,090
|
|
|
60,483,244
|
|
|
62,407,429
|
|
||||
Plus: Dilutive securities
|
2,983,612
|
|
|
3,066,357
|
|
|
2,990,068
|
|
|
3,153,501
|
|
||||
Weighted average common shares used in diluted per common share calculations
|
63,347,189
|
|
|
65,288,447
|
|
|
63,473,312
|
|
|
65,560,930
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
|
(in millions)
|
||||||||||||||
Net income
|
$
|
178.4
|
|
|
$
|
142.6
|
|
|
$
|
334.2
|
|
|
$
|
311.2
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Change in unrealized gains on investments, net of taxes of $(126.5), $(60.0), $(41.4) and $(129.0) for the three and six months ended June 30, 2020 and 2019, respectively
|
434.7
|
|
|
228.5
|
|
|
132.6
|
|
|
477.4
|
|
||||
Change in unrealized gains on derivative transactions, net of taxes of $0.2, $0.1, $0.3 and $0.3 for the three and six months ended June 30, 2020 and 2019, respectively
|
(0.6
|
)
|
|
(2.9
|
)
|
|
(1.2
|
)
|
|
(3.2
|
)
|
||||
Change in non-credit related impairment losses, net of taxes of $(0.4), $(0.2), $0.3 and $(0.1) for the three and six months ended June 30, 2020 and 2019, respectively
|
1.5
|
|
|
0.7
|
|
|
(1.2
|
)
|
|
0.5
|
|
||||
Change in foreign currency translation, net of taxes of ($4.0), $(0.8), $5.7 and $(1.4) for the three and six months ended June 30, 2020 and 2019, respectively
|
46.6
|
|
|
(1.2
|
)
|
|
(20.1
|
)
|
|
9.0
|
|
||||
Change in pension and postretirement unrecognized net periodic benefit cost, net of taxes of $0.5, $(0.1), $(12.6) and $(0.1) for the three and six months ended June 30, 2020 and 2019, respectively (1)
|
(1.7
|
)
|
|
0.2
|
|
|
47.3
|
|
|
0.4
|
|
||||
Total other comprehensive income
|
480.5
|
|
|
225.3
|
|
|
157.4
|
|
|
484.1
|
|
||||
Total comprehensive income
|
658.9
|
|
|
367.9
|
|
|
491.6
|
|
|
795.3
|
|
||||
Less: Comprehensive (income) loss attributable to non-controlling interests
|
(0.3
|
)
|
|
1.5
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||||
Total comprehensive income attributable to stockholders
|
$
|
658.6
|
|
|
$
|
369.4
|
|
|
$
|
490.2
|
|
|
$
|
793.9
|
|
(1)
|
Change in six months ended June 30, 2020 includes the prior service credit resulting from the February 2020 amendment of the Retirement Health Benefits plan. Refer to Note 19 for further information.
|
|
|
|
|
Three Months Ended June 30, 2020
|
||||||||||||||||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Treasury
Stock
|
|
Non-controlling Interests
|
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Balance at March 31, 2020
|
$
|
2.9
|
|
|
$
|
1.6
|
|
|
$
|
4,540.6
|
|
|
$
|
6,061.1
|
|
|
$
|
88.4
|
|
|
$
|
(5,324.6
|
)
|
|
$
|
16.2
|
|
|
$
|
5,386.2
|
|
Stock plan issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Stock plan compensation expense
|
—
|
|
|
—
|
|
|
14.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.9
|
|
||||||||
Common stock dividends ($0.63 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39.6
|
)
|
||||||||
Acquisition of common stock
|
—
|
|
|
—
|
|
|
(5.1
|
)
|
|
—
|
|
|
—
|
|
|
(25.8
|
)
|
|
—
|
|
|
(30.9
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
178.1
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
178.4
|
|
||||||||
Preferred stock dividends ($1.63 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.6
|
)
|
||||||||
Change in equity of non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
(0.4
|
)
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
480.5
|
|
|
—
|
|
|
—
|
|
|
480.5
|
|
||||||||
Balance at June 30, 2020
|
$
|
2.9
|
|
|
$
|
1.6
|
|
|
$
|
4,550.4
|
|
|
$
|
6,194.4
|
|
|
$
|
568.9
|
|
|
$
|
(5,350.4
|
)
|
|
$
|
16.7
|
|
|
$
|
5,984.5
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Treasury
Stock
|
|
Non-controlling Interests
|
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Balance at March 31, 2019
|
$
|
2.9
|
|
|
$
|
1.6
|
|
|
$
|
4,496.0
|
|
|
$
|
5,879.7
|
|
|
$
|
103.4
|
|
|
$
|
(5,043.0
|
)
|
|
$
|
31.1
|
|
|
$
|
5,471.7
|
|
Stock plan issuances
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Stock plan compensation expense
|
—
|
|
|
—
|
|
|
14.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.2
|
|
||||||||
Common stock dividends ($0.60 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(38.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38.3
|
)
|
||||||||
Acquisition of common stock
|
—
|
|
|
—
|
|
|
(1.0
|
)
|
|
—
|
|
|
—
|
|
|
(50.1
|
)
|
|
—
|
|
|
(51.1
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
144.1
|
|
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
|
142.6
|
|
||||||||
Preferred stock dividends ($1.63 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.6
|
)
|
||||||||
Change in equity of non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
225.3
|
|
|
—
|
|
|
—
|
|
|
225.3
|
|
||||||||
Balance at June 30, 2019
|
$
|
2.9
|
|
|
$
|
1.6
|
|
|
$
|
4,509.2
|
|
|
$
|
5,980.9
|
|
|
$
|
328.7
|
|
|
$
|
(5,093.1
|
)
|
|
$
|
30.1
|
|
|
$
|
5,760.3
|
|
|
|
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive Income
|
|
Treasury
Stock
|
|
Non-controlling Interests
|
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Balance at December 31, 2019
|
$
|
2.9
|
|
|
$
|
1.6
|
|
|
$
|
4,537.7
|
|
|
$
|
5,966.4
|
|
|
$
|
411.5
|
|
|
$
|
(5,267.3
|
)
|
|
$
|
29.3
|
|
|
$
|
5,682.1
|
|
Cumulative effect of change in accounting principles, net of taxes (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.4
|
)
|
||||||||
Stock plan issuances
|
—
|
|
|
—
|
|
|
3.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.9
|
|
||||||||
Stock plan compensation expense
|
—
|
|
|
—
|
|
|
26.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
||||||||
Common stock dividends ($1.26 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(77.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77.6
|
)
|
||||||||
Acquisition of common stock
|
—
|
|
|
—
|
|
|
(17.6
|
)
|
|
—
|
|
|
—
|
|
|
(83.1
|
)
|
|
—
|
|
|
(100.7
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
332.8
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
334.2
|
|
||||||||
Preferred stock dividends ($3.25 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.3
|
)
|
||||||||
Change in equity of non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
(14.0
|
)
|
|
(11.5
|
)
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
157.4
|
|
|
—
|
|
|
—
|
|
|
157.4
|
|
||||||||
Balance at June 30, 2020
|
$
|
2.9
|
|
|
$
|
1.6
|
|
|
$
|
4,550.4
|
|
|
$
|
6,194.4
|
|
|
$
|
568.9
|
|
|
$
|
(5,350.4
|
)
|
|
$
|
16.7
|
|
|
$
|
5,984.5
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Non-controlling Interests
|
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
$
|
2.9
|
|
|
$
|
1.6
|
|
|
$
|
4,495.6
|
|
|
$
|
5,759.7
|
|
|
$
|
(155.4
|
)
|
|
$
|
(4,992.4
|
)
|
|
$
|
21.9
|
|
|
$
|
5,133.9
|
|
Stock plan issuances
|
—
|
|
|
—
|
|
|
3.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.5
|
|
||||||||
Stock plan compensation expense
|
—
|
|
|
—
|
|
|
25.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25.7
|
|
||||||||
Common stock dividends ($1.20 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(75.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(75.7
|
)
|
||||||||
Acquisition of common stock
|
—
|
|
|
—
|
|
|
(15.6
|
)
|
|
—
|
|
|
—
|
|
|
(100.7
|
)
|
|
—
|
|
|
(116.3
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
309.8
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
311.2
|
|
||||||||
Preferred stock dividends ($3.25 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.3
|
)
|
||||||||
Change in equity of non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
6.8
|
|
|
3.2
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
484.1
|
|
|
—
|
|
|
—
|
|
|
484.1
|
|
||||||||
Balance at June 30, 2019
|
$
|
2.9
|
|
|
$
|
1.6
|
|
|
$
|
4,509.2
|
|
|
$
|
5,980.9
|
|
|
$
|
328.7
|
|
|
$
|
(5,093.1
|
)
|
|
$
|
30.1
|
|
|
$
|
5,760.3
|
|
(1)
|
Amount relates to the adoption of a new accounting standard for accounting for expected credit losses for assets held at amortized cost, which established allowances for such expected credit losses as of January 1, 2020. Refer to Notes 3 and 6 for additional information.
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
2020
|
|
2019
|
||||
|
(in millions)
|
||||||
Operating activities
|
|
|
|
||||
Net income attributable to stockholders
|
$
|
332.8
|
|
|
$
|
309.8
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Noncash revenues, expenses, gains and losses included in income:
|
|
|
|
||||
Deferred tax expense
|
162.2
|
|
|
53.6
|
|
||
Amortization of deferred gains on disposal of businesses
|
(6.6
|
)
|
|
(12.5
|
)
|
||
Depreciation and amortization
|
65.0
|
|
|
60.1
|
|
||
Net realized losses (gains) on investments, including impairment losses
|
71.2
|
|
|
(46.6
|
)
|
||
Stock based compensation expense
|
26.4
|
|
|
25.7
|
|
||
Other intangible asset impairment
|
—
|
|
|
14.6
|
|
||
Iké related charges, net of derivative gains (1)
|
1.7
|
|
|
9.4
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Change in insurance policy reserves and expenses
|
139.9
|
|
|
501.0
|
|
||
Change in premiums and accounts receivable
|
202.7
|
|
|
(99.4
|
)
|
||
Change in commissions payable
|
(55.8
|
)
|
|
6.9
|
|
||
Change in reinsurance recoverable
|
38.5
|
|
|
85.1
|
|
||
Change in reinsurance balance payable
|
13.2
|
|
|
(12.7
|
)
|
||
Change in funds withheld under reinsurance
|
29.8
|
|
|
34.4
|
|
||
Change in deferred acquisition costs and value of business acquired
|
(145.2
|
)
|
|
(438.6
|
)
|
||
Change in taxes (receivable) payable
|
(214.2
|
)
|
|
30.1
|
|
||
Change in other assets and other liabilities
|
(369.3
|
)
|
|
190.7
|
|
||
Other
|
(0.1
|
)
|
|
14.1
|
|
||
Net cash provided by operating activities
|
292.2
|
|
|
725.7
|
|
||
Investing activities
|
|
|
|
||||
Sales of:
|
|
|
|
||||
Fixed maturity securities available for sale
|
403.4
|
|
|
1,262.3
|
|
||
Equity securities
|
11.2
|
|
|
52.5
|
|
||
Other invested assets
|
35.8
|
|
|
22.1
|
|
||
Iké foreign currency hedge (1)
|
22.0
|
|
|
—
|
|
||
Maturities, calls, prepayments, and scheduled redemption of:
|
|
|
|
||||
Fixed maturity securities available for sale
|
453.2
|
|
|
295.9
|
|
||
Commercial mortgage loans on real estate
|
20.6
|
|
|
32.2
|
|
||
Purchases of:
|
|
|
|
||||
Fixed maturity securities available for sale
|
(995.6
|
)
|
|
(1,731.7
|
)
|
||
Equity securities
|
(26.9
|
)
|
|
(43.8
|
)
|
||
Commercial mortgage loans on real estate
|
(3.0
|
)
|
|
(52.3
|
)
|
||
Other invested assets (2)
|
(46.7
|
)
|
|
(24.9
|
)
|
||
Property and equipment and other
|
(46.2
|
)
|
|
(57.8
|
)
|
||
Subsidiaries, net of cash transferred (3)
|
(135.8
|
)
|
|
—
|
|
||
Net cash outflow related to sale of interests in Iké and termination of put/call obligations (1)
|
(73.3
|
)
|
|
—
|
|
||
Consolidated investment entities (4):
|
|
|
|
||||
Purchases of investments
|
(312.5
|
)
|
|
(874.0
|
)
|
||
Sale of investments
|
502.7
|
|
|
488.5
|
|
||
Change in short-term investments
|
159.0
|
|
|
18.9
|
|
|
|
|
Other
|
(0.1
|
)
|
|
2.5
|
|
||
Net cash used in investing activities
|
(32.2
|
)
|
|
(609.6
|
)
|
||
Financing activities
|
|
|
|
||||
Issuance of collateralized loan obligation notes (4)
|
—
|
|
|
416.4
|
|
||
Issuance of debt for consolidated investment entities (4)
|
—
|
|
|
189.1
|
|
||
Repayment of debt for consolidated investment entities (4)
|
(1.2
|
)
|
|
(318.1
|
)
|
||
Borrowings under secured revolving credit facility
|
200.0
|
|
|
—
|
|
||
Acquisition of common stock
|
(86.2
|
)
|
|
(98.5
|
)
|
||
Common stock dividends paid
|
(77.6
|
)
|
|
(75.7
|
)
|
||
Preferred stock dividends paid
|
(9.3
|
)
|
|
(9.3
|
)
|
||
Employee stock purchases and withholdings
|
(13.7
|
)
|
|
14.7
|
|
||
Net cash provided by financing activities
|
12.0
|
|
|
118.6
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(1.6
|
)
|
|
1.7
|
|
||
Change in cash and cash equivalents
|
270.4
|
|
|
236.4
|
|
||
Cash and cash equivalents at beginning of period
|
1,867.1
|
|
|
1,254.0
|
|
||
Cash and cash equivalents at end of period
|
$
|
2,137.5
|
|
|
$
|
1,490.4
|
|
(1)
|
Relates to Iké disposition and related financing. Refer to Note 5 for additional information.
|
(2)
|
Includes loan to Iké Grupo. Refer to Note 5 for additional information.
|
(3)
|
Consists of $175.4 million in cash consideration for the acquisition of American Financial & Automotive Services, Inc., net of $39.6 million of cash acquired. Refer to Note 4 for additional information.
|
(4)
|
Relates to cash flows from our variable interest entities. Refer to Note 11 for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of January 1, 2020
|
||||||||||
|
Prior to adoption
|
|
As reported on adoption
|
|
Impact of adoption
|
||||||
Financial assets, at amortized cost:
|
|
|
|
|
|
||||||
Reinsurance recoverables
|
$
|
9,593.4
|
|
|
$
|
9,570.9
|
|
|
$
|
(22.5
|
)
|
Premiums and accounts receivable, net
|
1,692.8
|
|
|
1,691.0
|
|
|
(1.8
|
)
|
|||
Commercial mortgage loans on real estate
|
815.0
|
|
|
813.4
|
|
|
(1.6
|
)
|
|||
Total
|
$
|
12,101.2
|
|
|
$
|
12,075.3
|
|
|
(25.9
|
)
|
|
Tax effect
|
|
|
|
|
5.5
|
|
|||||
Cumulative effect of adoption
|
|
|
|
|
$
|
(20.4
|
)
|
|
|
|
|
Global Lifestyle
|
|
Global Housing
|
|
Global Preneed
|
|
Corporate and Other
|
|
Total
|
||||||||||
Balance, December 31, 2019
|
$
|
2.5
|
|
|
$
|
0.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2.8
|
|
Cumulative effect of adoption
|
3.9
|
|
|
0.7
|
|
|
0.2
|
|
|
17.7
|
|
|
22.5
|
|
|||||
Incremental allowance
|
0.6
|
|
|
0.2
|
|
|
—
|
|
|
3.2
|
|
|
4.0
|
|
|||||
Recoveries
|
(2.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
|||||
Balance, June 30, 2020
|
$
|
4.5
|
|
|
$
|
1.2
|
|
|
$
|
0.2
|
|
|
$
|
20.9
|
|
|
$
|
26.8
|
|
|
Global Lifestyle
|
|
Global Housing
|
|
Global Preneed
|
|
Corporate and Other
|
|
Total
|
||||||||||
Balance, December 31, 2019
|
$
|
14.2
|
|
|
$
|
0.2
|
|
|
$
|
0.5
|
|
|
$
|
0.4
|
|
|
$
|
15.3
|
|
Cumulative effect of adoption
|
1.3
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
1.8
|
|
|||||
Acquired allowance as of acquisition date
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|||||
Incremental allowance
|
3.1
|
|
|
0.7
|
|
|
—
|
|
|
0.2
|
|
|
4.0
|
|
|||||
Recoveries
|
(1.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|||||
Write-offs
|
(2.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.8
|
)
|
|||||
Foreign currency translation
|
(0.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|||||
Balance, June 30, 2020
|
$
|
14.3
|
|
|
$
|
1.4
|
|
|
$
|
0.5
|
|
|
$
|
0.6
|
|
|
$
|
16.8
|
|
|
|
|
|
Origination Year
|
|
|
|||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
Total
|
|
% of Total
|
|||||||||||||
Loan to value ratios (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
70% and less
|
$
|
109.6
|
|
|
$
|
188.7
|
|
|
$
|
147.0
|
|
|
$
|
91.4
|
|
|
$
|
239.0
|
|
|
$
|
775.7
|
|
|
97.6
|
%
|
71% to 80%
|
7.0
|
|
|
—
|
|
|
—
|
|
|
6.9
|
|
|
—
|
|
|
13.9
|
|
|
1.8
|
%
|
||||||
81% to 95%
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.6
|
|
|
4.6
|
|
|
0.6
|
%
|
||||||
Total
|
$
|
116.6
|
|
|
$
|
188.7
|
|
|
$
|
147.0
|
|
|
$
|
98.3
|
|
|
$
|
243.6
|
|
|
$
|
794.2
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Origination Year
|
|
|
|||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
Prior
|
|
Total
|
|
% of Total
|
|||||||||||||
Debt service coverage ratios (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Greater than 2.0
|
$
|
37.4
|
|
|
$
|
71.6
|
|
|
$
|
72.7
|
|
|
$
|
67.7
|
|
|
$
|
111.7
|
|
|
$
|
361.1
|
|
|
45.4
|
%
|
1.5 to 2.0
|
41.7
|
|
|
73.7
|
|
|
47.9
|
|
|
20.9
|
|
|
61.0
|
|
|
245.2
|
|
|
30.9
|
%
|
||||||
1.0 to 1.5
|
37.5
|
|
|
43.4
|
|
|
26.4
|
|
|
9.7
|
|
|
66.5
|
|
|
183.5
|
|
|
23.1
|
%
|
||||||
Less than 1.0
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|
4.4
|
|
|
0.6
|
%
|
||||||
Total
|
$
|
116.6
|
|
|
$
|
188.7
|
|
|
$
|
147.0
|
|
|
$
|
98.3
|
|
|
$
|
243.6
|
|
|
$
|
794.2
|
|
|
100.0
|
%
|
(1)
|
LTV ratio derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated at least annually.
|
|
|
|
(2)
|
DSC ratio calculated using most recent reported operating income results from property operators divided by annual debt service coverage.
|
|
|
|
•
|
Global Lifestyle: provides mobile device solutions and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance products (referred to as “Global Financial Services and Other”);
|
•
|
Global Housing: provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”);
|
•
|
Global Preneed: provides pre-funded funeral insurance, final need insurance and related services; and
|
•
|
Corporate and Other: includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), interest income earned from short-term investments held, income (expenses) primarily related to the Company’s frozen benefit plans, amounts related to businesses previously disposed of through reinsurance and the run-off of the Assurant Health business. Corporate and Other also includes 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).
|
|
|
|
|
Three Months Ended June 30, 2020
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Global Lifestyle
|
|
Global Housing
|
|
Global Preneed
|
|
Corporate
and Other
|
|
Consolidated
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earned premiums
|
$
|
1,568.1
|
|
|
$
|
453.2
|
|
|
$
|
15.1
|
|
|
$
|
—
|
|
|
$
|
2,036.4
|
|
Fees and other income
|
200.6
|
|
|
35.7
|
|
|
35.2
|
|
|
—
|
|
|
271.5
|
|
|||||
Net investment income
|
44.2
|
|
|
16.4
|
|
|
70.1
|
|
|
6.5
|
|
|
137.2
|
|
|||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
24.1
|
|
|
24.1
|
|
|||||
Amortization of deferred gains on disposal of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
|
2.4
|
|
|||||
Total revenues
|
1,812.9
|
|
|
505.3
|
|
|
120.4
|
|
|
33.0
|
|
|
2,471.6
|
|
|||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits
|
343.1
|
|
|
180.4
|
|
|
68.5
|
|
|
0.1
|
|
|
592.1
|
|
|||||
Amortization of deferred acquisition costs and value of business acquired
|
810.8
|
|
|
56.2
|
|
|
18.3
|
|
|
—
|
|
|
885.3
|
|
|||||
Underwriting, general and administrative expenses
|
500.7
|
|
|
161.1
|
|
|
16.1
|
|
|
58.3
|
|
|
736.2
|
|
|||||
Iké net losses
|
—
|
|
|
—
|
|
|
—
|
|
|
4.5
|
|
|
4.5
|
|
|||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
26.7
|
|
|
26.7
|
|
|||||
Total benefits, losses and expenses
|
1,654.6
|
|
|
397.7
|
|
|
102.9
|
|
|
89.6
|
|
|
2,244.8
|
|
|||||
Segment income (loss) before provision (benefit) for income tax
|
158.3
|
|
|
107.6
|
|
|
17.5
|
|
|
(56.6
|
)
|
|
226.8
|
|
|||||
Provision (benefit) for income taxes
|
36.5
|
|
|
22.2
|
|
|
3.8
|
|
|
(14.1
|
)
|
|
48.4
|
|
|||||
Segment income (loss) after taxes
|
121.8
|
|
|
85.4
|
|
|
13.7
|
|
|
(42.5
|
)
|
|
178.4
|
|
|||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|||||
Net income (loss) attributable to stockholders
|
121.8
|
|
|
85.4
|
|
|
13.7
|
|
|
(42.8
|
)
|
|
178.1
|
|
|||||
Less: Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.6
|
)
|
|
(4.6
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
121.8
|
|
|
$
|
85.4
|
|
|
$
|
13.7
|
|
|
$
|
(47.4
|
)
|
|
$
|
173.5
|
|
|
As of June 30, 2020
|
||||||||||||||||||
Segment assets:
|
$
|
22,763.9
|
|
|
$
|
4,036.9
|
|
|
$
|
7,473.2
|
|
|
$
|
9,959.2
|
|
|
$
|
44,233.2
|
|
|
|
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Global Lifestyle
|
|
Global Housing
|
|
Global Preneed
|
|
Corporate
and Other
|
|
Consolidated
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earned premiums
|
$
|
1,545.5
|
|
|
$
|
471.8
|
|
|
$
|
15.4
|
|
|
$
|
—
|
|
|
$
|
2,032.7
|
|
Fees and other income
|
263.6
|
|
|
38.3
|
|
|
34.2
|
|
|
—
|
|
|
336.1
|
|
|||||
Net investment income
|
56.5
|
|
|
18.8
|
|
|
70.6
|
|
|
8.3
|
|
|
154.2
|
|
|||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
17.8
|
|
|
17.8
|
|
|||||
Amortization of deferred gains on disposal of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
4.7
|
|
|
4.7
|
|
|||||
Total revenues
|
1,865.6
|
|
|
528.9
|
|
|
120.2
|
|
|
30.8
|
|
|
2,545.5
|
|
|||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits
|
412.9
|
|
|
207.8
|
|
|
66.2
|
|
|
0.1
|
|
|
687.0
|
|
|||||
Amortization of deferred acquisition costs and value of business acquired
|
740.7
|
|
|
57.5
|
|
|
17.6
|
|
|
—
|
|
|
815.8
|
|
|||||
Underwriting, general and administrative expenses
|
570.2
|
|
|
173.3
|
|
|
14.7
|
|
|
65.5
|
|
|
823.7
|
|
|||||
Iké net losses
|
—
|
|
|
—
|
|
|
—
|
|
|
9.2
|
|
|
9.2
|
|
|||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
26.5
|
|
|
26.5
|
|
|||||
Total benefits, losses and expenses
|
1,723.8
|
|
|
438.6
|
|
|
98.5
|
|
|
101.3
|
|
|
2,362.2
|
|
|||||
Segment income (loss) before provision (benefit) for income tax
|
141.8
|
|
|
90.3
|
|
|
21.7
|
|
|
(70.5
|
)
|
|
183.3
|
|
|||||
Provision (benefit) for income taxes
|
32.5
|
|
|
18.8
|
|
|
4.8
|
|
|
(15.4
|
)
|
|
40.7
|
|
|||||
Segment income (loss) after taxes
|
109.3
|
|
|
71.5
|
|
|
16.9
|
|
|
(55.1
|
)
|
|
142.6
|
|
|||||
Less: Net loss attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
1.5
|
|
|||||
Net income (loss) attributable to stockholders
|
109.3
|
|
|
71.5
|
|
|
16.9
|
|
|
(53.6
|
)
|
|
144.1
|
|
|||||
Less: Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.6
|
)
|
|
(4.6
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
109.3
|
|
|
$
|
71.5
|
|
|
$
|
16.9
|
|
|
$
|
(58.2
|
)
|
|
$
|
139.5
|
|
|
|
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Global Lifestyle
|
|
Global Housing
|
|
Global Preneed
|
|
Corporate
and Other
|
|
Consolidated
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earned premiums
|
$
|
3,165.8
|
|
|
$
|
921.0
|
|
|
$
|
33.4
|
|
|
$
|
—
|
|
|
$
|
4,120.2
|
|
Fees and other income
|
549.8
|
|
|
68.3
|
|
|
70.3
|
|
|
—
|
|
|
688.4
|
|
|||||
Net investment income
|
98.9
|
|
|
38.4
|
|
|
140.2
|
|
|
15.7
|
|
|
293.2
|
|
|||||
Net realized losses on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(71.2
|
)
|
|
(71.2
|
)
|
|||||
Amortization of deferred gains on disposal of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
6.6
|
|
|
6.6
|
|
|||||
Total revenues
|
3,814.5
|
|
|
1,027.7
|
|
|
243.9
|
|
|
(48.9
|
)
|
|
5,037.2
|
|
|||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits
|
679.3
|
|
|
379.1
|
|
|
140.5
|
|
|
0.4
|
|
|
1,199.3
|
|
|||||
Amortization of deferred acquisition costs and value of business acquired
|
1,649.2
|
|
|
113.1
|
|
|
37.2
|
|
|
—
|
|
|
1,799.5
|
|
|||||
Underwriting, general and administrative expenses
|
1,168.6
|
|
|
334.4
|
|
|
33.1
|
|
|
108.2
|
|
|
1,644.3
|
|
|||||
Iké net losses
|
—
|
|
|
—
|
|
|
—
|
|
|
5.9
|
|
|
5.9
|
|
|||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
52.2
|
|
|
52.2
|
|
|||||
Total benefits, losses and expenses
|
3,497.1
|
|
|
826.6
|
|
|
210.8
|
|
|
166.7
|
|
|
4,701.2
|
|
|||||
Segment income (loss) before provision (benefit) for income tax
|
317.4
|
|
|
201.1
|
|
|
33.1
|
|
|
(215.6
|
)
|
|
336.0
|
|
|||||
Provision (benefit) for income taxes
|
74.7
|
|
|
41.5
|
|
|
7.1
|
|
|
(121.5
|
)
|
|
1.8
|
|
|||||
Segment income (loss) after taxes
|
242.7
|
|
|
159.6
|
|
|
26.0
|
|
|
(94.1
|
)
|
|
334.2
|
|
|||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
|||||
Net income (loss) attributable to stockholders
|
242.7
|
|
|
159.6
|
|
|
26.0
|
|
|
(95.5
|
)
|
|
332.8
|
|
|||||
Less: Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.3
|
)
|
|
(9.3
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
242.7
|
|
|
$
|
159.6
|
|
|
$
|
26.0
|
|
|
$
|
(104.8
|
)
|
|
$
|
323.5
|
|
|
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Global Lifestyle
|
|
Global Housing
|
|
Global Preneed
|
|
Corporate
and Other
|
|
Consolidated
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earned premiums
|
$
|
2,974.0
|
|
|
$
|
931.9
|
|
|
$
|
31.2
|
|
|
$
|
—
|
|
|
$
|
3,937.1
|
|
Fees and other income
|
516.7
|
|
|
78.2
|
|
|
67.5
|
|
|
2.0
|
|
|
664.4
|
|
|||||
Net investment income
|
115.4
|
|
|
44.2
|
|
|
139.7
|
|
|
21.2
|
|
|
320.5
|
|
|||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
46.6
|
|
|
46.6
|
|
|||||
Amortization of deferred gains on disposal of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
12.5
|
|
|
12.5
|
|
|||||
Total revenues
|
3,606.1
|
|
|
1,054.3
|
|
|
238.4
|
|
|
82.3
|
|
|
4,981.1
|
|
|||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits
|
760.1
|
|
|
406.7
|
|
|
134.8
|
|
|
0.1
|
|
|
1,301.7
|
|
|||||
Amortization of deferred acquisition costs and value of business acquired
|
1,446.5
|
|
|
111.4
|
|
|
35.2
|
|
|
—
|
|
|
1,593.1
|
|
|||||
Underwriting, general and administrative expenses
|
1,126.0
|
|
|
354.0
|
|
|
31.6
|
|
|
112.0
|
|
|
1,623.6
|
|
|||||
Iké net losses
|
—
|
|
|
—
|
|
|
—
|
|
|
9.4
|
|
|
9.4
|
|
|||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
53.0
|
|
|
53.0
|
|
|||||
Total benefits, losses and expenses
|
3,332.6
|
|
|
872.1
|
|
|
201.6
|
|
|
174.5
|
|
|
4,580.8
|
|
|||||
Segment income (loss) before provision (benefit) for income tax
|
273.5
|
|
|
182.2
|
|
|
36.8
|
|
|
(92.2
|
)
|
|
400.3
|
|
|||||
Provision (benefit) for income taxes
|
63.6
|
|
|
38.0
|
|
|
8.1
|
|
|
(20.6
|
)
|
|
89.1
|
|
|||||
Segment income (loss) after taxes
|
209.9
|
|
|
144.2
|
|
|
28.7
|
|
|
(71.6
|
)
|
|
311.2
|
|
|||||
Less: Net income attributable to non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
|||||
Net income (loss) attributable to stockholders
|
209.9
|
|
|
144.2
|
|
|
28.7
|
|
|
(73.0
|
)
|
|
309.8
|
|
|||||
Less: Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.3
|
)
|
|
(9.3
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
209.9
|
|
|
$
|
144.2
|
|
|
$
|
28.7
|
|
|
$
|
(82.3
|
)
|
|
$
|
300.5
|
|
|
|
|
|
|
|
|
June 30, 2020
|
||||||||||||||||||
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Impairment in
AOCI (1)
|
||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government agencies and authorities
|
$
|
129.2
|
|
|
$
|
7.4
|
|
|
$
|
—
|
|
|
$
|
136.6
|
|
|
$
|
—
|
|
States, municipalities and political subdivisions
|
205.3
|
|
|
31.3
|
|
|
—
|
|
|
236.6
|
|
|
—
|
|
|||||
Foreign governments
|
884.3
|
|
|
144.3
|
|
|
(1.1
|
)
|
|
1,027.5
|
|
|
—
|
|
|||||
Asset-backed
|
485.7
|
|
|
3.5
|
|
|
(10.2
|
)
|
|
479.0
|
|
|
—
|
|
|||||
Commercial mortgage-backed
|
240.4
|
|
|
13.1
|
|
|
(4.8
|
)
|
|
248.7
|
|
|
—
|
|
|||||
Residential mortgage-backed
|
1,134.7
|
|
|
98.6
|
|
|
(0.2
|
)
|
|
1,233.1
|
|
|
2.7
|
|
|||||
U.S. corporate
|
5,874.7
|
|
|
1,021.0
|
|
|
(32.1
|
)
|
|
6,863.6
|
|
|
15.4
|
|
|||||
Foreign corporate
|
2,096.1
|
|
|
322.5
|
|
|
(4.1
|
)
|
|
2,414.5
|
|
|
—
|
|
|||||
Total fixed maturity securities
|
$
|
11,050.4
|
|
|
$
|
1,641.7
|
|
|
$
|
(52.5
|
)
|
|
$
|
12,639.6
|
|
|
$
|
18.1
|
|
|
|||||||||||||||||||
|
December 31, 2019
|
||||||||||||||||||
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
Impairment in
AOCI (1)
|
||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government agencies and authorities
|
$
|
188.9
|
|
|
$
|
5.3
|
|
|
$
|
(0.1
|
)
|
|
$
|
194.1
|
|
|
$
|
—
|
|
States, municipalities and political subdivisions
|
216.1
|
|
|
26.4
|
|
|
—
|
|
|
242.5
|
|
|
—
|
|
|||||
Foreign governments
|
916.9
|
|
|
94.3
|
|
|
(0.8
|
)
|
|
1,010.4
|
|
|
—
|
|
|||||
Asset-backed
|
502.4
|
|
|
3.1
|
|
|
(2.3
|
)
|
|
503.2
|
|
|
—
|
|
|||||
Commercial mortgage-backed
|
212.7
|
|
|
10.2
|
|
|
(0.8
|
)
|
|
222.1
|
|
|
—
|
|
|||||
Residential mortgage-backed
|
1,235.3
|
|
|
52.4
|
|
|
(1.4
|
)
|
|
1,286.3
|
|
|
3.1
|
|
|||||
U.S. corporate
|
5,679.8
|
|
|
818.9
|
|
|
(2.1
|
)
|
|
6,496.6
|
|
|
16.5
|
|
|||||
Foreign corporate
|
2,112.7
|
|
|
255.4
|
|
|
(0.9
|
)
|
|
2,367.2
|
|
|
—
|
|
|||||
Total fixed maturity securities
|
$
|
11,064.8
|
|
|
$
|
1,266.0
|
|
|
$
|
(8.4
|
)
|
|
$
|
12,322.4
|
|
|
$
|
19.6
|
|
(1)
|
Represents the amount of non-credit related impairment recognized in AOCI. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date prior to adoption of ASC 326. See Note 3 for further information.
|
|
|
|
|
Cost or
Amortized Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
469.9
|
|
|
$
|
475.3
|
|
Due after one year through five years
|
2,449.4
|
|
|
2,598.3
|
|
||
Due after five years through ten years
|
2,436.6
|
|
|
2,721.7
|
|
||
Due after ten years
|
3,833.7
|
|
|
4,883.5
|
|
||
Total
|
9,189.6
|
|
|
10,678.8
|
|
||
Asset-backed
|
485.7
|
|
|
479.0
|
|
||
Commercial mortgage-backed
|
240.4
|
|
|
248.7
|
|
||
Residential mortgage-backed
|
1,134.7
|
|
|
1,233.1
|
|
||
Total
|
$
|
11,050.4
|
|
|
$
|
12,639.6
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net realized gains (losses) related to sales and other:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
$
|
(1.2
|
)
|
|
$
|
8.0
|
|
|
$
|
5.8
|
|
|
$
|
7.7
|
|
Equity securities (1)
|
21.4
|
|
|
7.0
|
|
|
(26.8
|
)
|
|
36.9
|
|
||||
Commercial mortgage loans on real estate
|
(0.4
|
)
|
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
||||
Other investments
|
(3.8
|
)
|
|
5.2
|
|
|
(3.0
|
)
|
|
5.1
|
|
||||
Consolidated investment entities (2)
|
15.9
|
|
|
(1.8
|
)
|
|
(32.3
|
)
|
|
(2.2
|
)
|
||||
Total net realized gains (losses) related to sales and other
|
31.9
|
|
|
18.4
|
|
|
(58.1
|
)
|
|
47.5
|
|
||||
Net realized losses related to impairments:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
(0.6
|
)
|
|
(0.6
|
)
|
|
(1.7
|
)
|
|
(0.9
|
)
|
||||
Other investments (3)
|
(7.2
|
)
|
|
—
|
|
|
(11.4
|
)
|
|
—
|
|
||||
Total net realized losses related to impairments
|
(7.8
|
)
|
|
(0.6
|
)
|
|
(13.1
|
)
|
|
(0.9
|
)
|
||||
Total net realized gains (losses)
|
$
|
24.1
|
|
|
$
|
17.8
|
|
|
$
|
(71.2
|
)
|
|
$
|
46.6
|
|
(1)
|
Six months ended June 30, 2020 and 2019 includes $2.2 million and $10.4 million, respectively, of gains on equity investment holdings accounted for under the measurement alternative. There were no changes in fair value recorded on equity investments holdings accounted for under the measurement alternative for the three months ended June 30, 2020 and 2019.
|
(2)
|
Consists of net realized losses from the change in fair value of the Company’s direct investment in collateralized loan obligations (“CLOs”). Refer to Note 11 for additional information.
|
(3)
|
Results for the three and six months ended June 30, 2020 consist of impairment losses on equity investment holdings accounted for under the measurement alternative.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Net gains (losses) recognized on equity securities
|
$
|
21.4
|
|
|
$
|
7.0
|
|
|
$
|
(26.8
|
)
|
|
$
|
36.9
|
|
Less: Net realized gains (losses) related to sales of equity securities
|
0.9
|
|
|
0.1
|
|
|
0.9
|
|
|
(0.9
|
)
|
||||
Total net unrealized gains (losses) on equity securities held
|
$
|
20.5
|
|
|
$
|
6.9
|
|
|
$
|
(27.7
|
)
|
|
$
|
37.8
|
|
|
June 30, 2020
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign governments
|
30.2
|
|
|
(1.1
|
)
|
|
—
|
|
|
—
|
|
|
30.2
|
|
|
(1.1
|
)
|
||||||
Asset-backed
|
139.2
|
|
|
(5.3
|
)
|
|
82.4
|
|
|
(4.9
|
)
|
|
221.6
|
|
|
(10.2
|
)
|
||||||
Commercial mortgage-backed
|
44.1
|
|
|
(3.9
|
)
|
|
4.4
|
|
|
(0.9
|
)
|
|
48.5
|
|
|
(4.8
|
)
|
||||||
Residential mortgage-backed
|
14.8
|
|
|
(0.1
|
)
|
|
1.5
|
|
|
(0.1
|
)
|
|
16.3
|
|
|
(0.2
|
)
|
||||||
U.S. corporate
|
312.9
|
|
|
(29.0
|
)
|
|
17.7
|
|
|
(3.1
|
)
|
|
330.6
|
|
|
(32.1
|
)
|
||||||
Foreign corporate
|
109.9
|
|
|
(4.1
|
)
|
|
—
|
|
|
—
|
|
|
109.9
|
|
|
(4.1
|
)
|
||||||
Total fixed maturity securities
|
$
|
651.1
|
|
|
$
|
(43.5
|
)
|
|
$
|
106.0
|
|
|
$
|
(9.0
|
)
|
|
$
|
757.1
|
|
|
$
|
(52.5
|
)
|
|
|
|
|
December 31, 2019
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and government agencies and authorities
|
$
|
21.9
|
|
|
$
|
(0.1
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21.9
|
|
|
$
|
(0.1
|
)
|
Foreign governments
|
115.7
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
115.7
|
|
|
(0.8
|
)
|
||||||
Asset-backed
|
66.9
|
|
|
(0.2
|
)
|
|
105.1
|
|
|
(2.1
|
)
|
|
172.0
|
|
|
(2.3
|
)
|
||||||
Commercial mortgage-backed
|
20.0
|
|
|
(0.3
|
)
|
|
4.3
|
|
|
(0.5
|
)
|
|
24.3
|
|
|
(0.8
|
)
|
||||||
Residential mortgage-backed
|
82.5
|
|
|
(0.6
|
)
|
|
82.6
|
|
|
(0.8
|
)
|
|
165.1
|
|
|
(1.4
|
)
|
||||||
U.S. corporate
|
87.5
|
|
|
(1.4
|
)
|
|
14.4
|
|
|
(0.7
|
)
|
|
101.9
|
|
|
(2.1
|
)
|
||||||
Foreign corporate
|
45.8
|
|
|
(0.7
|
)
|
|
7.5
|
|
|
(0.2
|
)
|
|
53.3
|
|
|
(0.9
|
)
|
||||||
Total fixed maturity securities
|
$
|
440.3
|
|
|
$
|
(4.1
|
)
|
|
$
|
213.9
|
|
|
$
|
(4.3
|
)
|
|
$
|
654.2
|
|
|
$
|
(8.4
|
)
|
|
|
|
|
June 30, 2020
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Investments:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
14.9
|
|
|
$
|
14.9
|
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
Corporate debt securities
|
1,581.0
|
|
|
—
|
|
|
1,581.0
|
|
|
—
|
|
||||
Real estate fund
|
54.5
|
|
|
—
|
|
|
—
|
|
|
54.5
|
|
||||
Total financial assets
|
$
|
1,650.4
|
|
|
$
|
14.9
|
|
|
$
|
1,581.0
|
|
|
$
|
54.5
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Collateralized loan obligation notes
|
$
|
1,505.0
|
|
|
$
|
—
|
|
|
$
|
1,505.0
|
|
|
$
|
—
|
|
Total financial liabilities
|
$
|
1,505.0
|
|
|
$
|
—
|
|
|
$
|
1,505.0
|
|
|
$
|
—
|
|
|
|
|
|
December 31, 2019
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Investments:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
32.9
|
|
|
$
|
32.9
|
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
Corporate debt securities
|
1,850.7
|
|
|
—
|
|
|
1,850.7
|
|
|
—
|
|
||||
Real estate fund
|
107.2
|
|
|
—
|
|
|
—
|
|
|
107.2
|
|
||||
Total financial assets
|
$
|
1,990.8
|
|
|
$
|
32.9
|
|
|
$
|
1,850.7
|
|
|
$
|
107.2
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Collateralized loan obligation notes
|
$
|
1,603.1
|
|
|
$
|
—
|
|
|
$
|
1,603.1
|
|
|
$
|
—
|
|
Total financial liabilities
|
$
|
1,603.1
|
|
|
$
|
—
|
|
|
$
|
1,603.1
|
|
|
$
|
—
|
|
(1)
|
Amounts consist of money market funds.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Balance, beginning of period
|
$
|
54.4
|
|
|
$
|
121.4
|
|
|
$
|
107.2
|
|
|
$
|
112.0
|
|
Purchases
|
—
|
|
|
15.4
|
|
|
—
|
|
|
15.4
|
|
||||
Sales
|
—
|
|
|
—
|
|
|
(61.0
|
)
|
|
—
|
|
||||
Total income included in earnings
|
0.1
|
|
|
1.4
|
|
|
8.3
|
|
|
10.8
|
|
||||
Balance, end of period
|
$
|
54.5
|
|
|
$
|
138.2
|
|
|
$
|
54.5
|
|
|
$
|
138.2
|
|
|
|
|
•
|
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.
|
|
|
|
|
June 30, 2020
|
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government agencies and authorities
|
$
|
136.6
|
|
|
$
|
—
|
|
|
$
|
136.6
|
|
|
$
|
—
|
|
|
States, municipalities and political subdivisions
|
236.6
|
|
|
—
|
|
|
236.6
|
|
|
—
|
|
|
||||
Foreign governments
|
1,027.5
|
|
|
0.5
|
|
|
1,027.0
|
|
|
—
|
|
|
||||
Asset-backed
|
479.0
|
|
|
—
|
|
|
479.0
|
|
|
—
|
|
|
||||
Commercial mortgage-backed
|
248.7
|
|
|
—
|
|
|
228.3
|
|
|
20.4
|
|
|
||||
Residential mortgage-backed
|
1,233.1
|
|
|
—
|
|
|
1,219.7
|
|
|
13.4
|
|
|
||||
U.S. corporate
|
6,863.6
|
|
|
—
|
|
|
6,836.0
|
|
|
27.6
|
|
|
||||
Foreign corporate
|
2,414.5
|
|
|
—
|
|
|
2,382.8
|
|
|
31.7
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
47.7
|
|
|
47.7
|
|
|
—
|
|
|
—
|
|
|
||||
Common stocks
|
20.1
|
|
|
18.5
|
|
|
0.8
|
|
|
0.8
|
|
|
||||
Non-redeemable preferred stocks
|
308.5
|
|
|
—
|
|
|
306.5
|
|
|
2.0
|
|
|
||||
Short-term investments
|
173.7
|
|
|
159.4
|
|
(2)
|
14.3
|
|
|
—
|
|
|
||||
Other investments
|
237.8
|
|
|
70.1
|
|
(1)
|
167.7
|
|
(3)
|
—
|
|
|
||||
Cash equivalents
|
1,443.5
|
|
|
1,399.9
|
|
(2)
|
43.6
|
|
(3)
|
—
|
|
|
||||
Other assets
|
3.4
|
|
|
—
|
|
|
3.0
|
|
(4)
|
0.4
|
|
(4)
|
||||
Assets held in separate accounts
|
1,819.4
|
|
|
1,654.6
|
|
(1)
|
164.8
|
|
(3)
|
—
|
|
|
||||
Total financial assets
|
$
|
16,693.7
|
|
|
$
|
3,350.7
|
|
|
$
|
13,246.7
|
|
|
$
|
96.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
$
|
70.1
|
|
|
$
|
70.1
|
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
Liabilities related to separate accounts
|
1,819.4
|
|
|
1,654.6
|
|
(1)
|
164.8
|
|
(3)
|
—
|
|
|
||||
Total financial liabilities
|
$
|
1,889.5
|
|
|
$
|
1,724.7
|
|
|
$
|
164.8
|
|
|
$
|
—
|
|
|
|
|
|
|
December 31, 2019
|
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government agencies and authorities
|
$
|
194.1
|
|
|
$
|
—
|
|
|
$
|
194.1
|
|
|
$
|
—
|
|
|
States, municipalities and political subdivisions
|
242.5
|
|
|
—
|
|
|
242.5
|
|
|
—
|
|
|
||||
Foreign governments
|
1,010.4
|
|
|
0.3
|
|
|
1,010.1
|
|
|
—
|
|
|
||||
Asset-backed
|
503.2
|
|
|
—
|
|
|
503.2
|
|
|
—
|
|
|
||||
Commercial mortgage-backed
|
222.1
|
|
|
—
|
|
|
198.6
|
|
|
23.5
|
|
|
||||
Residential mortgage-backed
|
1,286.3
|
|
|
—
|
|
|
1,286.3
|
|
|
—
|
|
|
||||
U.S. corporate
|
6,496.6
|
|
|
—
|
|
|
6,494.8
|
|
|
1.8
|
|
|
||||
Foreign corporate
|
2,367.2
|
|
|
—
|
|
|
2,331.5
|
|
|
35.7
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
45.5
|
|
|
45.5
|
|
|
—
|
|
|
—
|
|
|
||||
Common stocks
|
23.5
|
|
|
22.8
|
|
|
0.7
|
|
|
—
|
|
|
||||
Non-redeemable preferred stocks
|
319.5
|
|
|
—
|
|
|
317.3
|
|
|
2.2
|
|
|
||||
Short-term investments
|
367.5
|
|
|
271.4
|
|
(2)
|
96.1
|
|
|
—
|
|
|
||||
Other investments
|
234.6
|
|
|
70.3
|
|
(1)
|
164.3
|
|
(3)
|
—
|
|
|
||||
Cash equivalents
|
1,287.5
|
|
|
1,277.8
|
|
(2)
|
9.7
|
|
(3)
|
—
|
|
|
||||
Assets held in separate accounts
|
1,806.3
|
|
|
1,623.7
|
|
(1)
|
182.6
|
|
(3)
|
—
|
|
|
||||
Total financial assets
|
$
|
16,406.8
|
|
|
$
|
3,311.8
|
|
|
$
|
13,031.8
|
|
|
$
|
63.2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
$
|
172.0
|
|
|
$
|
70.3
|
|
(1)
|
$
|
101.5
|
|
(5)
|
$
|
0.2
|
|
|
Liabilities related to separate accounts
|
1,806.3
|
|
|
1,623.7
|
|
(1)
|
182.6
|
|
(3)
|
—
|
|
|
||||
Total financial liabilities
|
$
|
1,978.3
|
|
|
$
|
1,694.0
|
|
|
$
|
284.1
|
|
|
$
|
0.2
|
|
|
(1)
|
Primarily includes mutual funds and related obligations.
|
(2)
|
Primarily includes money market funds.
|
(3)
|
Primarily includes fixed maturity securities and related obligations.
|
(4)
|
Primarily includes derivative assets.
|
(5)
|
Includes the put/call related to the investment in Iké. See Note 5 for more information.
|
|
|
|
|
June 30, 2020
|
||||||||||||||||||
|
|
|
Fair Value
|
||||||||||||||||
|
Carrying
Value
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial mortgage loans on real estate
|
$
|
790.1
|
|
|
$
|
814.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
814.0
|
|
Other investments
|
166.8
|
|
|
166.8
|
|
|
30.8
|
|
|
—
|
|
|
136.0
|
|
|||||
Other assets
|
26.9
|
|
|
26.9
|
|
|
—
|
|
|
—
|
|
|
26.9
|
|
|||||
Total financial assets
|
$
|
983.8
|
|
|
$
|
1,007.7
|
|
|
$
|
30.8
|
|
|
$
|
—
|
|
|
$
|
976.9
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)
|
$
|
527.8
|
|
|
$
|
574.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
574.2
|
|
Funds withheld under reinsurance
|
346.8
|
|
|
346.8
|
|
|
346.8
|
|
|
—
|
|
|
—
|
|
|||||
Debt
|
2,208.0
|
|
|
2,362.5
|
|
|
—
|
|
|
2,362.5
|
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
3,082.6
|
|
|
$
|
3,283.5
|
|
|
$
|
346.8
|
|
|
$
|
2,362.5
|
|
|
$
|
574.2
|
|
|
|||||||||||||||||||
|
December 31, 2019
|
||||||||||||||||||
|
|
|
Fair Value
|
||||||||||||||||
|
Carrying
Value
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial mortgage loans on real estate
|
$
|
815.0
|
|
|
$
|
843.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
843.8
|
|
Other investments
|
140.0
|
|
|
140.0
|
|
|
30.7
|
|
|
—
|
|
|
109.3
|
|
|||||
Other assets
|
28.9
|
|
|
28.9
|
|
|
—
|
|
|
—
|
|
|
28.9
|
|
|||||
Total financial assets
|
$
|
983.9
|
|
|
$
|
1,012.7
|
|
|
$
|
30.7
|
|
|
$
|
—
|
|
|
$
|
982.0
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)
|
$
|
551.6
|
|
|
$
|
588.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
588.4
|
|
Funds withheld under reinsurance
|
319.4
|
|
|
319.4
|
|
|
319.4
|
|
|
—
|
|
|
—
|
|
|||||
Debt
|
2,006.9
|
|
|
2,190.6
|
|
|
—
|
|
|
2,190.6
|
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
2,877.9
|
|
|
$
|
3,098.4
|
|
|
$
|
319.4
|
|
|
$
|
2,190.6
|
|
|
$
|
588.4
|
|
(1)
|
Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the table above.
|
|
|
|
|
For the Six Months Ended June 30,
|
||||||
|
2020
|
|
2019
|
||||
Claims and benefits payable, at beginning of period
|
$
|
2,687.7
|
|
|
$
|
2,813.7
|
|
Less: Reinsurance ceded and other
|
(1,900.0
|
)
|
|
(2,053.7
|
)
|
||
Net claims and benefits payable, at beginning of period
|
787.7
|
|
|
760.0
|
|
||
Incurred losses and loss adjustment expenses related to:
|
|
|
|
||||
Current year
|
1,242.1
|
|
|
1,339.4
|
|
||
Prior years
|
(43.1
|
)
|
|
(37.7
|
)
|
||
Total incurred losses and loss adjustment expenses
|
1,199.0
|
|
|
1,301.7
|
|
||
Paid losses and loss adjustment expenses related to:
|
|
|
|
||||
Current year
|
786.9
|
|
|
882.9
|
|
||
Prior years
|
399.4
|
|
|
409.2
|
|
||
Total paid losses and loss adjustment expenses
|
1,186.3
|
|
|
1,292.1
|
|
||
Net claims and benefits payable, at end of period
|
800.4
|
|
|
769.6
|
|
||
Plus: Reinsurance ceded and other (1)
|
1,868.7
|
|
|
1,952.6
|
|
||
Claims and benefits payable, at end of period (1)
|
$
|
2,669.1
|
|
|
$
|
2,722.2
|
|
(1)
|
Includes reinsurance recoverables and claims and benefits payable of $72.0 million and $83.2 million as of June 30, 2020 and 2019, respectively, which was ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program.
|
|
|
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||
|
Principal Amount
|
|
Carrying Value
|
|
Principal Amount
|
|
Carrying Value
|
||||||||
Floating Rate Senior Notes due March 2021 (1)
|
$
|
50.0
|
|
|
$
|
49.9
|
|
|
$
|
50.0
|
|
|
$
|
49.9
|
|
4.00% Senior Notes due March 2023
|
350.0
|
|
|
348.7
|
|
|
350.0
|
|
|
348.5
|
|
||||
4.20% Senior Notes due September 2023
|
300.0
|
|
|
298.1
|
|
|
300.0
|
|
|
297.8
|
|
||||
4.90% Senior Notes due March 2028
|
300.0
|
|
|
297.0
|
|
|
300.0
|
|
|
296.8
|
|
||||
3.70% Senior Notes due February 2030
|
350.0
|
|
|
346.9
|
|
|
350.0
|
|
|
346.8
|
|
||||
6.75% Senior Notes due February 2034
|
275.0
|
|
|
272.2
|
|
|
275.0
|
|
|
272.1
|
|
||||
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2)
|
400.0
|
|
|
395.2
|
|
|
400.0
|
|
|
395.0
|
|
||||
Total Senior and Subordinated Notes
|
|
|
2,008.0
|
|
|
|
|
2,006.9
|
|
||||||
Revolving Credit Facility (3)
|
200.0
|
|
|
200.0
|
|
|
—
|
|
|
—
|
|
||||
Total Debt
|
|
|
$
|
2,208.0
|
|
|
|
|
$
|
2,006.9
|
|
(1)
|
Bears floating interest at a rate equal to three-month LIBOR plus 1.25% per annum.
|
(2)
|
Bears a 7.00% annual interest rate to March 2028 and an annual interest rate equal to three-month LIBOR plus 4.135% thereafter.
|
(3)
|
Borrowings under the Credit Facility (as defined below) for second quarter 2020 bore a floating interest rate initially equal to three-month LIBOR plus 1.50% per annum. The loan was continued upon expiration of the initial interest period at a floating interest rate equal to one-month LIBOR plus 1.50% per annum.
|
|
|
|
|
Three Months Ended June 30, 2020
|
||||||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Net unrealized
gains on
investments
|
|
Net unrealized gains on derivative transactions
|
|
Non-Credit Related Impairment
|
|
Unamortized net losses on Pension Plans
|
|
Accumulated
other
comprehensive
income
|
||||||||||||
Balance at March 31, 2020
|
$
|
(425.6
|
)
|
|
$
|
554.4
|
|
|
$
|
16.5
|
|
|
$
|
12.8
|
|
|
$
|
(69.7
|
)
|
|
$
|
88.4
|
|
Change in accumulated other comprehensive income (loss) before reclassifications
|
26.9
|
|
|
432.6
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
|
461.0
|
|
||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
19.7
|
|
|
2.1
|
|
|
(0.6
|
)
|
|
—
|
|
|
(1.7
|
)
|
|
19.5
|
|
||||||
Net current-period other comprehensive income (loss)
|
46.6
|
|
|
434.7
|
|
|
(0.6
|
)
|
|
1.5
|
|
|
(1.7
|
)
|
|
480.5
|
|
||||||
Balance at June 30, 2020
|
$
|
(379.0
|
)
|
|
$
|
989.1
|
|
|
$
|
15.9
|
|
|
$
|
14.3
|
|
|
$
|
(71.4
|
)
|
|
$
|
568.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Net unrealized
gains on
investments
|
|
Net unrealized gains on derivative transactions
|
|
Non-Credit Related Impairment
|
|
Unamortized net (losses) gains on Pension Plans
|
|
Accumulated
other
comprehensive
income
|
||||||||||||
Balance at March 31, 2019
|
$
|
(365.4
|
)
|
|
$
|
549.9
|
|
|
$
|
18.1
|
|
|
$
|
14.9
|
|
|
$
|
(114.1
|
)
|
|
$
|
103.4
|
|
Change in accumulated other comprehensive (loss) income before reclassifications
|
(1.2
|
)
|
|
233.1
|
|
|
(2.3
|
)
|
|
0.7
|
|
|
—
|
|
|
230.3
|
|
||||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
—
|
|
|
(4.6
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
0.2
|
|
|
(5.0
|
)
|
||||||
Net current-period other comprehensive (loss) income
|
(1.2
|
)
|
|
228.5
|
|
|
(2.9
|
)
|
|
0.7
|
|
|
0.2
|
|
|
225.3
|
|
||||||
Balance at June 30, 2019
|
$
|
(366.6
|
)
|
|
$
|
778.4
|
|
|
$
|
15.2
|
|
|
$
|
15.6
|
|
|
$
|
(113.9
|
)
|
|
$
|
328.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2020
|
||||||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Net unrealized
gains on
securities
|
|
Net unrealized gains on derivative transactions
|
|
Non-Credit Related Impairment
|
|
Unamortized net (losses) on Pension Plans (1)
|
|
Accumulated
other
comprehensive
income
|
||||||||||||
Balance at December 31, 2019
|
$
|
(358.9
|
)
|
|
$
|
856.5
|
|
|
$
|
17.1
|
|
|
$
|
15.5
|
|
|
$
|
(118.7
|
)
|
|
$
|
411.5
|
|
Change in accumulated other
comprehensive (loss) income
before reclassifications
|
(39.8
|
)
|
|
135.3
|
|
|
—
|
|
|
(1.2
|
)
|
|
48.9
|
|
|
143.2
|
|
||||||
Amounts reclassified from
accumulated other comprehensive
(loss) income
|
19.7
|
|
|
(2.7
|
)
|
|
(1.2
|
)
|
|
—
|
|
|
(1.6
|
)
|
|
14.2
|
|
||||||
Net current-period other
comprehensive (loss) income
|
(20.1
|
)
|
|
132.6
|
|
|
(1.2
|
)
|
|
(1.2
|
)
|
|
47.3
|
|
|
157.4
|
|
||||||
Balance at June 30, 2020
|
$
|
(379.0
|
)
|
|
$
|
989.1
|
|
|
$
|
15.9
|
|
|
$
|
14.3
|
|
|
$
|
(71.4
|
)
|
|
$
|
568.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Net unrealized
gains on
securities
|
|
Net unrealized gains on derivative transactions
|
|
Non-Credit Related Impairment
|
|
Unamortized net (losses) on Pension Plans
|
|
Accumulated
other
comprehensive
income
|
||||||||||||
Balance at December 31, 2018
|
$
|
(375.6
|
)
|
|
$
|
301.0
|
|
|
$
|
18.4
|
|
|
$
|
15.1
|
|
|
$
|
(114.3
|
)
|
|
$
|
(155.4
|
)
|
Change in accumulated other
comprehensive income (loss)
before reclassifications
|
9.0
|
|
|
480.4
|
|
|
(2.0
|
)
|
|
0.5
|
|
|
—
|
|
|
487.9
|
|
||||||
Amounts reclassified from
accumulated other comprehensive
income (loss)
|
—
|
|
|
(3.0
|
)
|
|
(1.2
|
)
|
|
—
|
|
|
0.4
|
|
|
(3.8
|
)
|
||||||
Net current-period other
comprehensive income (loss)
|
9.0
|
|
|
477.4
|
|
|
(3.2
|
)
|
|
0.5
|
|
|
0.4
|
|
|
484.1
|
|
||||||
Balance at June 30, 2019
|
$
|
(366.6
|
)
|
|
$
|
778.4
|
|
|
$
|
15.2
|
|
|
$
|
15.6
|
|
|
$
|
(113.9
|
)
|
|
$
|
328.7
|
|
(1)
|
The Retirement Health Benefits plan was amended in February 2020, which resulted in a prior service credit recognized in other comprehensive income that will be recognized in income over the remaining period of the plan. Refer to Note 19 for additional information.
|
Details about accumulated other comprehensive income components
|
|
Amount reclassified from
accumulated other
comprehensive income
|
|
Affected line item in the
statement where net
income is presented
|
||||||
|
|
Three Months Ended June 30,
|
|
|
||||||
|
|
2020
|
|
2019
|
|
|
||||
Net unrealized losses (gains) on investments
|
|
$
|
2.7
|
|
|
$
|
(5.9
|
)
|
|
Net realized gains (losses) on investments
|
|
|
(0.6
|
)
|
|
1.3
|
|
|
Provision for income taxes
|
||
|
|
$
|
2.1
|
|
|
$
|
(4.6
|
)
|
|
Net of tax
|
Net unrealized gains on derivative transactions
|
|
$
|
(0.7
|
)
|
|
$
|
(0.8
|
)
|
|
Interest expense
|
|
|
0.1
|
|
|
0.2
|
|
|
Provision for income taxes
|
||
|
|
$
|
(0.6
|
)
|
|
$
|
(0.6
|
)
|
|
Net of tax
|
Foreign currency translation adjustment
|
|
$
|
19.7
|
|
|
$
|
—
|
|
|
Iké net losses (see Note 5)
|
|
|
—
|
|
|
—
|
|
|
Provision for income taxes
|
||
|
|
$
|
19.7
|
|
|
$
|
—
|
|
|
Net of tax
|
|
|
|
Amortization of pension and postretirement unrecognized net periodic benefit cost:
|
|
|
|
|
|
|
||||
Amortization of net loss
|
|
$
|
1.2
|
|
|
$
|
0.3
|
|
|
(1)
|
Amortization of prior service credit
|
|
(3.4
|
)
|
|
—
|
|
|
(1)
|
||
|
|
(2.2
|
)
|
|
0.3
|
|
|
|
||
|
|
0.5
|
|
|
(0.1
|
)
|
|
Provision for income taxes
|
||
|
|
$
|
(1.7
|
)
|
|
$
|
0.2
|
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
19.5
|
|
|
$
|
(5.0
|
)
|
|
Net of tax
|
|
|
|
|
|
|
|
||||
Details about accumulated other comprehensive income components
|
|
Amount reclassified from
accumulated other
comprehensive income
|
|
Affected line item in the
statement where net
income is presented
|
||||||
|
|
Six Months Ended June 30,
|
|
|
||||||
|
|
2020
|
|
2019
|
|
|
||||
Net unrealized gains on investments
|
|
$
|
(3.4
|
)
|
|
$
|
(3.8
|
)
|
|
Net realized gains (losses) on investments
|
|
|
0.7
|
|
|
0.8
|
|
|
Provision for income taxes
|
||
|
|
$
|
(2.7
|
)
|
|
$
|
(3.0
|
)
|
|
Net of tax
|
Net unrealized gains on derivative transactions
|
|
$
|
(1.5
|
)
|
|
$
|
(1.5
|
)
|
|
Interest expense
|
|
|
0.3
|
|
|
0.3
|
|
|
Provision for income taxes
|
||
|
|
$
|
(1.2
|
)
|
|
$
|
(1.2
|
)
|
|
Net of tax
|
Foreign currency translation adjustment
|
|
$
|
19.7
|
|
|
$
|
—
|
|
|
Iké net losses (see Note 5)
|
|
|
—
|
|
|
—
|
|
|
Provision for income taxes
|
||
|
|
$
|
19.7
|
|
|
$
|
—
|
|
|
Net of tax
|
Amortization of pension and postretirement unrecognized net periodic benefit cost:
|
|
|
|
|
|
|
||||
Amortization of net loss
|
|
$
|
2.5
|
|
|
$
|
0.6
|
|
|
(1)
|
Amortization of prior service credit
|
|
(4.5
|
)
|
|
—
|
|
|
(1)
|
||
|
|
(2.0
|
)
|
|
0.6
|
|
|
|
||
|
|
0.4
|
|
|
(0.2
|
)
|
|
Provision for income taxes
|
||
|
|
$
|
(1.6
|
)
|
|
$
|
0.4
|
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
14.2
|
|
|
$
|
(3.8
|
)
|
|
Net of tax
|
(1)
|
These AOCI components are included in the computation of net periodic pension cost. See Note 19 for additional information.
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
RSU compensation expense
|
$
|
7.3
|
|
|
$
|
7.4
|
|
|
$
|
13.6
|
|
|
$
|
14.4
|
|
Income tax benefit
|
(1.3
|
)
|
|
(1.4
|
)
|
|
(2.4
|
)
|
|
(2.7
|
)
|
||||
RSU compensation expense, net of tax
|
$
|
6.0
|
|
|
$
|
6.0
|
|
|
$
|
11.2
|
|
|
$
|
11.7
|
|
RSUs granted
|
33,538
|
|
|
31,554
|
|
|
261,950
|
|
|
225,396
|
|
||||
Weighted average grant date fair value per unit
|
$
|
100.62
|
|
|
$
|
96.18
|
|
|
$
|
90.99
|
|
|
$
|
97.56
|
|
Total fair value of vested RSUs
|
$
|
15.5
|
|
|
$
|
5.0
|
|
|
$
|
24.4
|
|
|
$
|
26.8
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
PSU compensation expense
|
$
|
7.3
|
|
|
$
|
6.6
|
|
|
$
|
12.1
|
|
|
$
|
10.8
|
|
Income tax benefit
|
(0.8
|
)
|
|
(0.9
|
)
|
|
(1.3
|
)
|
|
(1.5
|
)
|
||||
PSU compensation expense, net of tax
|
$
|
6.5
|
|
|
$
|
5.7
|
|
|
$
|
10.8
|
|
|
$
|
9.3
|
|
PSUs granted
|
—
|
|
|
—
|
|
|
302,274
|
|
|
246,219
|
|
||||
Weighted average grant date fair value per unit
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
87.36
|
|
|
$
|
105.23
|
|
Total fair value of vested PSUs
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
24.4
|
|
|
$
|
17.7
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Numerator
|
|
|
|
|
|
|
|
||||||||
Net income attributable to stockholders
|
$
|
178.1
|
|
|
$
|
144.1
|
|
|
$
|
332.8
|
|
|
$
|
309.8
|
|
Less: Preferred stock dividends
|
(4.6
|
)
|
|
(4.6
|
)
|
|
(9.3
|
)
|
|
(9.3
|
)
|
||||
Net income attributable to common stockholders
|
173.5
|
|
|
139.5
|
|
|
323.5
|
|
|
300.5
|
|
||||
Less: Common stock dividends paid
|
(39.6
|
)
|
|
(38.3
|
)
|
|
(77.6
|
)
|
|
(75.7
|
)
|
||||
Undistributed earnings
|
$
|
133.9
|
|
|
$
|
101.2
|
|
|
$
|
245.9
|
|
|
$
|
224.8
|
|
Denominator
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding used in basic earnings per common share calculations
|
60,363,577
|
|
|
62,222,090
|
|
|
60,483,244
|
|
|
62,407,429
|
|
||||
Incremental common shares from:
|
|
|
|
|
|
|
|
||||||||
PSUs
|
164,530
|
|
|
114,502
|
|
|
250,048
|
|
|
172,321
|
|
||||
ESPP
|
41,832
|
|
|
42,642
|
|
|
41,832
|
|
|
42,642
|
|
||||
MCPS
|
2,777,250
|
|
|
2,909,213
|
|
|
2,698,188
|
|
|
2,938,538
|
|
||||
Weighted average common shares used in diluted earnings per common share calculations
|
63,347,189
|
|
|
65,288,447
|
|
|
63,473,312
|
|
|
65,560,930
|
|
||||
Earnings per common share - Basic
|
|
|
|
|
|
|
|
||||||||
Distributed earnings
|
$
|
0.66
|
|
|
$
|
0.62
|
|
|
$
|
1.28
|
|
|
$
|
1.21
|
|
Undistributed earnings
|
2.21
|
|
|
1.62
|
|
|
4.07
|
|
|
3.61
|
|
||||
Net income attributable to common stockholders
|
$
|
2.87
|
|
|
$
|
2.24
|
|
|
$
|
5.35
|
|
|
$
|
4.82
|
|
Earnings per common share - Diluted
|
|
|
|
|
|
|
|
||||||||
Distributed earnings
|
$
|
0.63
|
|
|
$
|
0.59
|
|
|
$
|
1.22
|
|
|
$
|
1.16
|
|
Undistributed earnings
|
2.18
|
|
|
1.62
|
|
|
4.02
|
|
|
3.57
|
|
||||
Net income attributable to common stockholders
|
$
|
2.81
|
|
|
$
|
2.21
|
|
|
$
|
5.24
|
|
|
$
|
4.73
|
|
|
|
|
|
Qualified Pension Benefits
|
|
Unfunded Non-qualified
Pension Benefits
|
|
Retirement Health
Benefits
|
||||||||||||||||||
|
For the Three Months Ended June 30,
|
|
For the Three Months Ended June 30,
|
|
For the Three Months Ended June 30,
|
||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||
Interest cost
|
$
|
5.1
|
|
|
$
|
6.6
|
|
|
$
|
0.5
|
|
|
$
|
0.7
|
|
|
$
|
0.1
|
|
|
$
|
0.9
|
|
Expected return on plan assets
|
(7.7
|
)
|
|
(9.0
|
)
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
(0.5
|
)
|
||||||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.4
|
)
|
|
—
|
|
||||||
Amortization of net loss
|
0.7
|
|
|
—
|
|
|
0.5
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost
|
$
|
(1.9
|
)
|
|
$
|
(2.4
|
)
|
|
$
|
1.0
|
|
|
$
|
1.0
|
|
|
$
|
(3.4
|
)
|
|
$
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Qualified Pension Benefits
|
|
Unfunded Nonqualified
Pension Benefits
|
|
Retirement Health
Benefits
|
||||||||||||||||||
|
For the Six Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||||||
Interest cost
|
$
|
10.2
|
|
|
$
|
13.1
|
|
|
$
|
1.0
|
|
|
$
|
1.4
|
|
|
$
|
0.5
|
|
|
$
|
1.8
|
|
Expected return on plan assets
|
(15.4
|
)
|
|
(18.0
|
)
|
|
—
|
|
|
—
|
|
|
(0.5
|
)
|
|
(0.9
|
)
|
||||||
Amortization of prior service credit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
|
—
|
|
||||||
Amortization of net loss (gain)
|
1.4
|
|
|
—
|
|
|
1.1
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost
|
$
|
(3.8
|
)
|
|
$
|
(4.9
|
)
|
|
$
|
2.1
|
|
|
$
|
2.0
|
|
|
$
|
(4.5
|
)
|
|
$
|
0.9
|
|
|
|
|
(i)
|
the impact of the COVID-19 pandemic, including the scope and duration of the outbreak, government actions and restrictive measures taken in response, and its effect on the global economic and financial markets;
|
(ii)
|
the loss of significant clients, distributors or other parties with whom we do business, or if we are unable to renew contracts with them on favorable terms, or those parties facing financial, reputational or regulatory issues;
|
(iii)
|
significant competitive pressures, changes in customer preferences and disruption;
|
(iv)
|
the failure to find suitable acquisitions, integrate completed acquisitions or grow organically, and risks associated with joint ventures and franchise ownership and operations;
|
(v)
|
the impact of general economic, financial market and political conditions, including unfavorable conditions in the capital and credit markets and in the markets in which we operate, including as a result of COVID-19;
|
(vi)
|
risks related to our international operations, including the United Kingdom’s withdrawal from the European Union, or fluctuations in exchange rates;
|
(vii)
|
the impact of catastrophic and non-catastrophe losses, including as a result of climate change;
|
(viii)
|
our inability to recover should we experience a business continuity event, including as a result of COVID-19;
|
(ix)
|
our inability to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships;
|
(x)
|
the failure to manage vendors and other third parties on whom we rely to conduct business and provide services to our clients;
|
(xi)
|
declines in the value of mobile devices, the risk of guaranteed buybacks or export compliance risk in our mobile business;
|
(xii)
|
negative publicity relating to our products and services or the markets in which we operate;
|
(xiii)
|
the failure to implement our strategy and to attract and retain key personnel, including senior management;
|
(xiv)
|
employee misconduct;
|
(xv)
|
the adequacy of reserves established for claims and our inability to accurately predict and price for claims;
|
(xvi)
|
a decline in financial strength ratings or corporate senior debt ratings;
|
(xvii)
|
an impairment of goodwill or other intangible assets;
|
(xviii)
|
the failure to maintain effective internal control over financial reporting;
|
(xix)
|
a decrease in the value of our investment portfolio, including due to market, credit and liquidity risks, changes in interest rates and COVID-19;
|
(xx)
|
the impact of U.S. tax reform legislation and impairment of deferred tax assets;
|
(xxi)
|
the unavailability or inadequacy of reinsurance coverage and the credit risk of reinsurers, including those to whom we have sold business through reinsurance;
|
(xxii)
|
the credit risk of some of our agents, third-party administrators and clients;
|
(xxiii)
|
the inability of our subsidiaries to pay sufficient dividends to the holding company and limitations on our ability to declare and pay dividends, including as a result of COVID-19;
|
(xxiv)
|
changes in the method for determining LIBOR or the replacement of LIBOR;
|
(xxv)
|
the failure to effectively maintain and modernize our information technology systems and infrastructure, or the failure to integrate those of acquired businesses;
|
(xxvi)
|
breaches of our information systems or those of third parties with whom we do business, or the failure to protect data in such systems, including due to cyber-attacks and as a result of working remotely during the COVID-19 pandemic;
|
(xxvii)
|
the costs of complying with, or the failure to comply with, extensive laws and regulations to which we are subject, including those related to privacy, data security and data protection;
|
(xxviii)
|
the impact from litigation and regulatory actions, including those arising from COVID-19;
|
(xxix)
|
reductions or deferrals in the insurance premiums we charge, including as a result of COVID-19; and
|
(xxx)
|
changes in insurance and other regulation, including to mitigate the impact of COVID-19.
|
•
|
Global Lifestyle: provides mobile device solutions and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance products (referred to as “Global Financial Services and Other”);
|
•
|
Global Housing: provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”);
|
•
|
Global Preneed: provides pre-funded funeral insurance, final need insurance and related services; and
|
•
|
Corporate and Other: includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), interest income earned from short-term investments held, income (expenses) primarily related to the Company’s frozen benefit plans, amounts related to businesses previously disposed of through reinsurance and the run-off of the Assurant Health business. Corporate and Other also includes 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).
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
2,036.4
|
|
|
$
|
2,032.7
|
|
|
$
|
4,120.2
|
|
|
$
|
3,937.1
|
|
Fees and other income
|
271.5
|
|
|
336.1
|
|
|
688.4
|
|
|
664.4
|
|
||||
Net investment income
|
137.2
|
|
|
154.2
|
|
|
293.2
|
|
|
320.5
|
|
||||
Net realized gains (losses) on investments
|
24.1
|
|
|
17.8
|
|
|
(71.2
|
)
|
|
46.6
|
|
||||
Amortization of deferred gains on disposal of businesses
|
2.4
|
|
|
4.7
|
|
|
6.6
|
|
|
12.5
|
|
||||
Total revenues
|
2,471.6
|
|
|
2,545.5
|
|
|
5,037.2
|
|
|
4,981.1
|
|
||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
592.1
|
|
|
687.0
|
|
|
1,199.3
|
|
|
1,301.7
|
|
||||
Amortization of deferred acquisition costs and value of business acquired
|
885.3
|
|
|
815.8
|
|
|
1,799.5
|
|
|
1,593.1
|
|
||||
Underwriting, general and administrative expenses
|
736.2
|
|
|
823.7
|
|
|
1,644.3
|
|
|
1,623.6
|
|
||||
Iké net losses
|
4.5
|
|
|
9.2
|
|
|
5.9
|
|
|
9.4
|
|
||||
Interest expense
|
26.7
|
|
|
26.5
|
|
|
52.2
|
|
|
53.0
|
|
||||
Total benefits, losses and expenses
|
2,244.8
|
|
|
2,362.2
|
|
|
4,701.2
|
|
|
4,580.8
|
|
||||
Income before provision for income taxes
|
226.8
|
|
|
183.3
|
|
|
336.0
|
|
|
400.3
|
|
||||
Provision for income taxes
|
48.4
|
|
|
40.7
|
|
|
1.8
|
|
|
89.1
|
|
||||
Net income
|
178.4
|
|
|
142.6
|
|
|
334.2
|
|
|
311.2
|
|
||||
Less: Net (income) loss attributable to non-controlling interest
|
(0.3
|
)
|
|
1.5
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||||
Net income attributable to stockholders
|
178.1
|
|
|
144.1
|
|
|
332.8
|
|
|
309.8
|
|
||||
Less: Preferred stock dividends
|
(4.6
|
)
|
|
(4.6
|
)
|
|
(9.3
|
)
|
|
(9.3
|
)
|
||||
Net income attributable to common stockholders
|
$
|
173.5
|
|
|
$
|
139.5
|
|
|
$
|
323.5
|
|
|
$
|
300.5
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
1,568.1
|
|
|
$
|
1,545.5
|
|
|
$
|
3,165.8
|
|
|
$
|
2,974.0
|
|
Fees and other income
|
200.6
|
|
|
263.6
|
|
|
549.8
|
|
|
516.7
|
|
||||
Net investment income
|
44.2
|
|
|
56.5
|
|
|
98.9
|
|
|
115.4
|
|
||||
Total revenues
|
1,812.9
|
|
|
1,865.6
|
|
|
3,814.5
|
|
|
3,606.1
|
|
||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
343.1
|
|
|
412.9
|
|
|
679.3
|
|
|
760.1
|
|
||||
Amortization of deferred acquisition costs and value of business acquired
|
810.8
|
|
|
740.7
|
|
|
1,649.2
|
|
|
1,446.5
|
|
||||
Underwriting, general and administrative expenses
|
500.7
|
|
|
570.2
|
|
|
1,168.6
|
|
|
1,126.0
|
|
||||
Total benefits, losses and expenses
|
1,654.6
|
|
|
1,723.8
|
|
|
3,497.1
|
|
|
3,332.6
|
|
||||
Segment income before provision for income taxes
|
158.3
|
|
|
141.8
|
|
|
317.4
|
|
|
273.5
|
|
||||
Provision for income taxes
|
36.5
|
|
|
32.5
|
|
|
74.7
|
|
|
63.6
|
|
||||
Segment net income
|
$
|
121.8
|
|
|
$
|
109.3
|
|
|
$
|
242.7
|
|
|
$
|
209.9
|
|
Net earned premiums, fees and other income:
|
|
|
|
|
|
|
|
||||||||
Connected Living (mobile and service contracts)
|
$
|
916.6
|
|
|
$
|
961.7
|
|
|
$
|
2,004.9
|
|
|
$
|
1,832.7
|
|
Global Automotive
|
755.4
|
|
|
731.4
|
|
|
1,508.5
|
|
|
1,425.0
|
|
||||
Global Financial Services and Other
|
96.7
|
|
|
116.0
|
|
|
202.2
|
|
|
233.0
|
|
||||
Total
|
$
|
1,768.7
|
|
|
$
|
1,809.1
|
|
|
$
|
3,715.6
|
|
|
$
|
3,490.7
|
|
Net earned premiums, fees and other income:
|
|
|
|
|
|
|
|
||||||||
Domestic
|
$
|
1,310.3
|
|
|
$
|
1,251.1
|
|
|
$
|
2,744.8
|
|
|
$
|
2,442.4
|
|
International
|
458.4
|
|
|
558.0
|
|
|
970.8
|
|
|
1,048.3
|
|
||||
Total
|
$
|
1,768.7
|
|
|
$
|
1,809.1
|
|
|
$
|
3,715.6
|
|
|
$
|
3,490.7
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
453.2
|
|
|
$
|
471.8
|
|
|
$
|
921.0
|
|
|
$
|
931.9
|
|
Fees and other income
|
35.7
|
|
|
38.3
|
|
|
68.3
|
|
|
78.2
|
|
||||
Net investment income
|
16.4
|
|
|
18.8
|
|
|
38.4
|
|
|
44.2
|
|
||||
Total revenues
|
505.3
|
|
|
528.9
|
|
|
1,027.7
|
|
|
1,054.3
|
|
||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
180.4
|
|
|
207.8
|
|
|
379.1
|
|
|
406.7
|
|
||||
Amortization of deferred acquisition costs and value of business acquired
|
56.2
|
|
|
57.5
|
|
|
113.1
|
|
|
111.4
|
|
||||
Underwriting, general and administrative expenses
|
161.1
|
|
|
173.3
|
|
|
334.4
|
|
|
354.0
|
|
||||
Total benefits, losses and expenses
|
397.7
|
|
|
438.6
|
|
|
826.6
|
|
|
872.1
|
|
||||
Segment income before provision for income taxes
|
107.6
|
|
|
90.3
|
|
|
201.1
|
|
|
182.2
|
|
||||
Provision for income taxes
|
22.2
|
|
|
18.8
|
|
|
41.5
|
|
|
38.0
|
|
||||
Segment net income
|
$
|
85.4
|
|
|
$
|
71.5
|
|
|
$
|
159.6
|
|
|
$
|
144.2
|
|
Net earned premiums, fees and other income:
|
|
|
|
|
|
|
|
||||||||
Lender-placed Insurance
|
$
|
265.0
|
|
|
$
|
281.8
|
|
|
$
|
529.3
|
|
|
$
|
556.0
|
|
Multifamily Housing
|
111.2
|
|
|
106.6
|
|
|
220.2
|
|
|
210.6
|
|
||||
Specialty and Other
|
112.7
|
|
|
121.7
|
|
|
239.8
|
|
|
243.5
|
|
||||
Total
|
$
|
488.9
|
|
|
$
|
510.1
|
|
|
$
|
989.3
|
|
|
$
|
1,010.1
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
15.1
|
|
|
$
|
15.4
|
|
|
$
|
33.4
|
|
|
$
|
31.2
|
|
Fees and other income
|
35.2
|
|
|
34.2
|
|
|
70.3
|
|
|
67.5
|
|
||||
Net investment income
|
70.1
|
|
|
70.6
|
|
|
140.2
|
|
|
139.7
|
|
||||
Total revenues
|
120.4
|
|
|
120.2
|
|
|
243.9
|
|
|
238.4
|
|
||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
68.5
|
|
|
66.2
|
|
|
140.5
|
|
|
134.8
|
|
||||
Amortization of deferred acquisition costs and value of business acquired
|
18.3
|
|
|
17.6
|
|
|
37.2
|
|
|
35.2
|
|
||||
Underwriting, general and administrative expenses
|
16.1
|
|
|
14.7
|
|
|
33.1
|
|
|
31.6
|
|
||||
Total benefits, losses and expenses
|
102.9
|
|
|
98.5
|
|
|
210.8
|
|
|
201.6
|
|
||||
Segment income before provision for income taxes
|
17.5
|
|
|
21.7
|
|
|
33.1
|
|
|
36.8
|
|
||||
Provision for income taxes
|
3.8
|
|
|
4.8
|
|
|
7.1
|
|
|
8.1
|
|
||||
Segment net income
|
$
|
13.7
|
|
|
$
|
16.9
|
|
|
$
|
26.0
|
|
|
$
|
28.7
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Fees and other income
|
—
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
||||
Net investment income
|
6.5
|
|
|
8.3
|
|
|
15.7
|
|
|
21.2
|
|
||||
Net realized gains (losses) on investments
|
24.1
|
|
|
17.8
|
|
|
(71.2
|
)
|
|
46.6
|
|
||||
Amortization of deferred gains on disposal of businesses
|
2.4
|
|
|
4.7
|
|
|
6.6
|
|
|
12.5
|
|
||||
Total revenues
|
33.0
|
|
|
30.8
|
|
|
(48.9
|
)
|
|
82.3
|
|
||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
0.1
|
|
|
0.1
|
|
|
0.4
|
|
|
0.1
|
|
||||
General and administrative expenses
|
58.3
|
|
|
65.5
|
|
|
108.2
|
|
|
112.0
|
|
||||
Iké net losses
|
4.5
|
|
|
9.2
|
|
|
5.9
|
|
|
9.4
|
|
||||
Interest expense
|
26.7
|
|
|
26.5
|
|
|
52.2
|
|
|
53.0
|
|
||||
Total benefits, losses and expenses
|
89.6
|
|
|
101.3
|
|
|
166.7
|
|
|
174.5
|
|
||||
Segment loss before benefit for income taxes
|
(56.6
|
)
|
|
(70.5
|
)
|
|
(215.6
|
)
|
|
(92.2
|
)
|
||||
Benefit for income taxes
|
(14.1
|
)
|
|
(15.4
|
)
|
|
(121.5
|
)
|
|
(20.6
|
)
|
||||
Segment net loss
|
(42.5
|
)
|
|
(55.1
|
)
|
|
(94.1
|
)
|
|
(71.6
|
)
|
||||
Less: Net (income) loss attributable to non-controlling interest
|
(0.3
|
)
|
|
1.5
|
|
|
(1.4
|
)
|
|
(1.4
|
)
|
||||
Net loss attributable to stockholders
|
(42.8
|
)
|
|
(53.6
|
)
|
|
(95.5
|
)
|
|
(73.0
|
)
|
||||
Less: Preferred stock dividends
|
(4.6
|
)
|
|
(4.6
|
)
|
|
(9.3
|
)
|
|
(9.3
|
)
|
||||
Net loss attributable to common stockholders
|
$
|
(47.4
|
)
|
|
$
|
(58.2
|
)
|
|
$
|
(104.8
|
)
|
|
$
|
(82.3
|
)
|
|
Fair value as of
|
||||||||||||
Fixed Maturity Securities by Credit Quality
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||
Aaa / Aa / A
|
$
|
8,079.4
|
|
|
63.9
|
%
|
|
$
|
8,014.7
|
|
|
65.1
|
%
|
Baa
|
3,969.4
|
|
|
31.4
|
%
|
|
3,734.7
|
|
|
30.3
|
%
|
||
Ba
|
514.5
|
|
|
4.1
|
%
|
|
480.7
|
|
|
3.9
|
%
|
||
B and lower
|
76.3
|
|
|
0.6
|
%
|
|
92.3
|
|
|
0.7
|
%
|
||
Total
|
$
|
12,639.6
|
|
|
100.0
|
%
|
|
$
|
12,322.4
|
|
|
100.0
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Fixed maturity securities
|
$
|
118.2
|
|
|
$
|
123.0
|
|
|
$
|
238.9
|
|
|
$
|
245.1
|
|
Equity securities
|
5.2
|
|
|
5.7
|
|
|
10.4
|
|
|
11.5
|
|
||||
Commercial mortgage loans on real estate
|
8.6
|
|
|
9.2
|
|
|
18.3
|
|
|
17.7
|
|
||||
Short-term investments
|
1.5
|
|
|
5.8
|
|
|
4.3
|
|
|
11.4
|
|
||||
Other investments
|
3.1
|
|
|
4.7
|
|
|
8.3
|
|
|
12.3
|
|
||||
Cash and cash equivalents
|
2.3
|
|
|
6.5
|
|
|
9.3
|
|
|
13.5
|
|
||||
Revenue from consolidated investment entities (1)
|
20.5
|
|
|
23.9
|
|
|
52.4
|
|
|
64.6
|
|
||||
Total investment income
|
159.4
|
|
|
178.8
|
|
|
341.9
|
|
|
376.1
|
|
||||
Investment expenses
|
(6.6
|
)
|
|
(6.4
|
)
|
|
(15.7
|
)
|
|
(12.0
|
)
|
||||
Expenses from consolidated investment entities (1)
|
(15.6
|
)
|
|
(18.2
|
)
|
|
$
|
(33.0
|
)
|
|
$
|
(43.6
|
)
|
||
Net investment income
|
$
|
137.2
|
|
|
$
|
154.2
|
|
|
$
|
293.2
|
|
|
$
|
320.5
|
|
(1)
|
The following table shows the net of revenues and expenses from consolidated investment entities for the periods indicated. Refer to Note 11 to the Consolidated Financial Statements included elsewhere in this Report for further detail.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2020
|
|
2019
|
|
2020
|
|
2019
|
||||||||
Investment income from direct investments in:
|
|
|
|
|
|
|
|
||||||||
Real estate fund (1)
|
$
|
0.1
|
|
|
$
|
1.4
|
|
|
$
|
8.3
|
|
|
$
|
10.8
|
|
CLO entities
|
3.3
|
|
|
3.0
|
|
|
8.0
|
|
|
6.8
|
|
||||
Investment management fees
|
1.5
|
|
|
1.3
|
|
|
3.1
|
|
|
3.4
|
|
||||
Net investment income from consolidated investment entities
|
$
|
4.9
|
|
|
$
|
5.7
|
|
|
$
|
19.4
|
|
|
$
|
21.0
|
|
(1)
|
The investment income from the real estate funds includes (loss) income attributable to non-controlling interest of $(0.6) million for the three months ended June 30, 2019 and $1.1 million and $1.2 million for the six months ended June 30, 2020 and 2019, respectively.
|
|
June 30, 2020
|
|
December 31, 2019
|
||||||||||||
|
Principal Amount
|
|
Carrying Value
|
|
Principal Amount
|
|
Carrying Value
|
||||||||
Floating Rate Senior Notes due March 2021 (1)
|
$
|
50.0
|
|
|
$
|
49.9
|
|
|
$
|
50.0
|
|
|
$
|
49.9
|
|
4.00% Senior Notes due March 2023
|
350.0
|
|
|
348.7
|
|
|
350.0
|
|
|
348.5
|
|
||||
4.20% Senior Notes due September 2023
|
300.0
|
|
|
298.1
|
|
|
300.0
|
|
|
297.8
|
|
||||
4.90% Senior Notes due March 2028
|
300.0
|
|
|
297.0
|
|
|
300.0
|
|
|
296.8
|
|
||||
3.70% Senior Notes due February 2030
|
350.0
|
|
|
346.9
|
|
|
350.0
|
|
|
346.8
|
|
||||
6.75% Senior Notes due February 2034
|
275.0
|
|
|
272.2
|
|
|
275.0
|
|
|
272.1
|
|
||||
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2)
|
400.0
|
|
|
395.2
|
|
|
400.0
|
|
|
395.0
|
|
||||
Total Senior and Subordinated Notes
|
|
|
2,008.0
|
|
|
|
|
2,006.9
|
|
||||||
Revolving Credit Facility (3)
|
200.0
|
|
|
200.0
|
|
|
—
|
|
|
—
|
|
||||
Total Debt
|
|
|
$
|
2,208.0
|
|
|
|
|
$
|
2,006.9
|
|
(1)
|
Bears floating interest at a rate equal to three-month LIBOR plus 1.25% per annum.
|
(2)
|
Bears a 7.00% annual interest rate to March 2028 and an annual interest rate equal to three-month LIBOR plus 4.135% thereafter.
|
(3)
|
Borrowings under the Credit Facility for Second Quarter 2020 bore a floating interest rate initially equal to three-month LIBOR plus 1.50% per annum. The loan was continued upon expiration of the initial interest period at a floating rate equal to one-month LIBOR plus 1.50% per annum.
|
•
|
2021 Senior Notes: The first series of senior notes is $300.0 million in principal amount, bears floating interest at a rate equal to three-month LIBOR plus 1.25% (1.53% as of June 30, 2020) per year and matures in March 2021 (the “2021 Senior Notes”). Interest on the 2021 Senior Notes is payable quarterly. Commencing on or after March 2019, we may redeem the 2021 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest. In August 2019, we redeemed $250.0 million of the $300.0 million outstanding aggregate principal amount of the 2021 Senior Notes.
|
•
|
2023 Senior Notes: The second series of senior notes is $300.0 million in principal amount, bears interest at 4.20% per year, matures in September 2023 and was issued at a 0.233% discount to the public (the “2023 Senior Notes”). Interest on the 2023 Senior Notes is payable semi-annually. Prior to August 2023, we may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, we may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
|
•
|
2028 Senior Notes: The third series of senior notes is $300.0 million in principal amount, bears interest at 4.90% per year, matures in March 2028 and was issued at a 0.383% discount to the public (the “2028 Senior Notes”). Interest on the 2028 Senior Notes is payable semi-annually. Prior to December 2027, we may redeem the 2028 Senior Notes at any time in whole or from time to time in part of a make-whole premium plus accrued and unpaid interest. On or after that date, we may redeem the 2028 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
|
(1)
|
Including the equivalent ratings of any substitute rating agency.
|
(2)
|
Applies to each rating agency individually.
|
|
For the Six Months Ended June 30,
|
||||||
Net cash provided by (used in):
|
2020
|
|
2019
|
||||
Operating activities
|
$
|
292.2
|
|
|
$
|
725.7
|
|
Investing activities
|
(32.2
|
)
|
|
(609.6
|
)
|
||
Financing activities
|
12.0
|
|
|
118.6
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(1.6
|
)
|
|
1.7
|
|
||
Net change in cash
|
$
|
270.4
|
|
|
$
|
236.4
|
|
|
For the Six Months Ended June 30,
|
||||||
|
2020
|
|
2019
|
||||
Interest paid on debt
|
$
|
52.6
|
|
|
$
|
53.3
|
|
Common stock dividends
|
77.6
|
|
|
75.7
|
|
||
Preferred stock dividends
|
9.3
|
|
|
9.3
|
|
||
Total
|
$
|
139.5
|
|
|
$
|
138.3
|
|
(In millions, except number of shares and per share amounts)
|
|||||||||||||
Period in 2020
|
Total
Number of
Shares Purchased
|
|
Average Price
Paid Per Share
|
|
Total Number of Shares
Purchased as Part of
Publicly Announced
Programs (1)
|
|
Approximate
Dollar Value of
Shares that
May Yet be
Purchased
Under the
Programs (1)
|
||||||
January 1 - January 31
|
117,870
|
|
|
$
|
131.23
|
|
|
117,870
|
|
|
$
|
470.8
|
|
February 1 - February 29
|
134,000
|
|
|
136.52
|
|
|
134,000
|
|
|
452.5
|
|
||
March 1 - March 31
|
229,097
|
|
|
102.30
|
|
|
229,097
|
|
|
429.0
|
|
||
April 1 - April 30
|
162,000
|
|
|
104.96
|
|
|
162,000
|
|
|
412.1
|
|
||
May 1 - May 31
|
92,000
|
|
|
96.46
|
|
|
92,000
|
|
|
403.2
|
|
||
June 1 - June 30
|
—
|
|
|
—
|
|
|
—
|
|
|
403.2
|
|
||
Total
|
734,967
|
|
|
$
|
113.03
|
|
|
734,967
|
|
|
$
|
403.2
|
|
(1)
|
Shares purchased pursuant to the November 5, 2018 publicly announced share repurchase authorization of up to $600.0 million of outstanding common stock. As of June 30, 2020, approximately $403.2 million remained under the November 2018 authorization.
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101
|
|
The following materials from the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended
June 30, 2020, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows and (vi) Notes to the Consolidated Financial Statements. |
104
|
|
Cover Page Interactive Data File (embedded within the Inline XBRL document).
|
ASSURANT, INC.
|
||
|
|
|
By:
|
|
/s/ ALAN B. COLBERG
|
Name:
|
|
Alan B. Colberg
|
Title:
|
|
President and Chief Executive Officer
|
|
|
|
By:
|
|
/s/ RICHARD S. DZIADZIO
|
Name:
|
|
Richard S. Dziadzio
|
Title:
|
|
Executive Vice President and Chief Financial Officer
|
|
/s/ Alan B. Colberg
|
|
Alan B. Colberg
President, Chief Executive Officer and Director
|
|
/s/ Richard S. Dziadzio
|
|
Richard S. Dziadzio
Executive Vice President and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Alan B. Colberg
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Alan B. Colberg
President, Chief Executive Officer and Director
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1.
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Richard S. Dziadzio
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Richard S. Dziadzio
Executive Vice President and Chief Financial Officer
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