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FORM 10-K
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x
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ANNUAL 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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Assurant, Inc.
(Exact name of registrant as specified in its charter)
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Delaware
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39-1126612
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(State or Other Jurisdiction
of Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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28 Liberty Street, 41st Floor
New York, New York
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10005
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of Each Class
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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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New York Stock Exchange
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x
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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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(Do not check if a smaller reporting company)
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Item
Number
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Page
Number
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PART I
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1.
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1A.
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1B.
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2.
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3.
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4.
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PART II
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5.
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6.
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7.
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7A.
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8.
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9.
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9A.
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9B.
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PART III
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10.
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11.
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12.
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13.
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14.
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PART IV
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15.
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16.
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EX-23.1: CONSENT OF PRICEWATERHOUSECOOPERS LLP
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EX-31.1: CERTIFICATION
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EX-31.2: CERTIFICATION
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EX-32.1: CERTIFICATION
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EX-32.2: CERTIFICATION
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For the Years Ended
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||||||
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December 31, 2016
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December 31, 2015
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Net earned premiums, fees and other by major product grouping:
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Lender-placed insurance
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$
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1,317,190
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$
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1,561,396
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Multi-family housing
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320,941
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282,680
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Mortgage solutions
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329,265
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289,575
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Manufactured housing and other
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321,405
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316,595
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Total
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$
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2,288,801
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$
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2,450,246
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Segment net income
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$
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188,666
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$
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307,705
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Combined ratio for risk-based businesses (1)
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91.1
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%
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83.4
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%
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Pre-tax income margin for fee-based, capital-light businesses (2)
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10.8
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%
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11.6
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%
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Equity, excluding accumulated other comprehensive income
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$
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1,398,339
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$
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1,351,122
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(1)
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The combined ratio for risk-based businesses is equal to total policyholder benefits, losses and expenses, including reportable catastrophe losses, divided by net earned premiums and fees and other income for lender-placed insurance, manufactured housing and other insurance businesses.
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(2)
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The pre-tax margin for fee-based, capital-light businesses equals income before provision for income taxes divided by net earned premiums and fees and other income for multi-family housing and mortgage solutions.
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For the Years Ended
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December 31, 2016
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December 31, 2015
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Net earned premiums, fees and other for selected product groupings:
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Global connected living (mobile and service contracts) (1)
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$
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2,570,143
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$
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2,550,990
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Global vehicle protection services
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715,794
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608,372
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Global credit and other
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420,230
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474,654
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Total
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$
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3,706,167
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$
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3,634,016
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Segment net income
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$
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154,425
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$
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153,004
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Combined ratio for risk-based businesses (2)
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95.9
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%
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95.5
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%
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Pre-tax income margin for fee-based, capital-light businesses (3)
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3.5
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%
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3.6
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%
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Equity, excluding accumulated other comprehensive income (4)
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$
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1,594,480
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$
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1,600,984
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(1)
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In 2016 and 2015, 45.2% and 40.2% of the total was from mobile products and 54.8% and 59.8% was from service contracts, respectively.
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(2)
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The combined ratio for risk-based businesses is equal to total benefits, losses and expenses divided by net earned premiums and fees and other income for global vehicle protection services, global credit and other insurance businesses.
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(3)
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The pre-tax income margin for fee-based, capital-light businesses equals income before provision for income taxes divided by net earned premiums and fees and other income for global connected living.
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(4)
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For purposes of presentation comparability, the 2015 equity measure reflects goodwill as if it were reallocated using the same fair value percentage as 2016. However, such segment change and reallocation did not occur until 2016.
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For the Years Ended
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December 31, 2016
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December 31, 2015
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Net earned premiums, fees and other income
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$
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171,279
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$
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167,441
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Segment net income
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$
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42,304
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$
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44,179
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Equity, excluding other comprehensive income (1)
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$
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440,600
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$
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434,788
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(1)
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For purposes of presentation comparability, the 2015 equity measure reflects goodwill as if it were reallocated using the same fair value percentage as 2016. However, such segment change and reallocation did not occur until 2016.
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A.M. Best
(1)
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Moody’s
(2)
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Standard &
Poor’s
(3)
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Outlook
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(4)
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(4)
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(4)
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Company
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American Bankers Insurance Company
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A
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A2
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A
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American Bankers Life Assurance Company
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A-
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A3
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A
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American Memorial Life Insurance Company
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A-
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N/A
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A
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American Security Insurance Company
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A
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A2
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A
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Assurant Life of Canada
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A-
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N/A
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N/A
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Caribbean American Life Assurance Company
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A-
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N/A
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N/A
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Caribbean American Property Insurance Company
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A
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N/A
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N/A
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Reliable Lloyds
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A
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N/A
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N/A
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Standard Guaranty Insurance Company
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A
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N/A
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N/A
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Union Security Insurance Company
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A-
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A3
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A
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Union Security Life Insurance Company of New York
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A-
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N/A
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N/A
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Voyager Indemnity Insurance Company
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A
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N/A
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N/A
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(1)
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A.M. Best financial strength ratings range from “A++” (superior) to “S” (suspended). Ratings of A and A- fall under the “excellent” category, which is the second highest of ten ratings categories. Ratings of B+ fall under the "good" category, which is the third highest of ten ratings categories.
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(2)
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Moody’s insurance financial strength ratings range from “Aaa” (exceptional) to “C” (extremely poor). A numeric modifier may be appended to ratings from “Aa” to “Caa” to indicate relative position within a category, with 1 being the highest and 3 being the lowest. Ratings of A2 and A3 are considered “good” and fall within the third highest of the nine ratings categories.
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(3)
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S&P’s insurer financial strength ratings range from “AAA” (extremely strong) to “R” (under regulatory supervision). A “+” or “-” may be appended to ratings from categories AA to CCC to indicate relative position within a category. Ratings of A (strong) are within the third highest of the nine ratings categories.
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(4)
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The outlook on all of the ratings above is stable.
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•
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licensing;
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capital, surplus and dividends;
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underwriting requirements and limitations (including, in some cases, minimum or target loss ratios);
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entrance into and exit from states;
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introduction, cancellation and termination of certain coverages;
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statutory accounting and annual statement disclosure requirements;
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product types, policy forms and mandated insurance benefits;
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premium rates;
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fines, penalties and assessments;
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claims practices, including occasional regulatory requirements to pay claims on terms other than those mandated by underlying policy contracts;
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transactions between affiliates;
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the form and content of disclosures to consumers;
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the type, amounts and valuation of investments;
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annual tests of solvency and reserve adequacy;
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assessments or other surcharges for guaranty funds and the recovery of assessments through premium increases; and
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market conduct and sales practices of insurers and agents.
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individuals and businesses may (i) choose not to purchase our insurance products, warranties and other products and services, (ii) terminate existing policies or contracts or permit them to lapse, and (iii) choose to reduce the amount of coverage they purchase;
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clients are more likely to experience financial distress or declare bankruptcy or liquidation which could have an adverse impact on the remittance of premiums from such clients as well as the collection of receivables from such clients for items such as unearned premiums;
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claims on certain specialized insurance products tend to rise;
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there is a higher loss ratio on credit card and installment loan insurance due to rising unemployment and disability levels;
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•
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there is an increased risk of fraudulent insurance claims; and
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•
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substantial decreases in loan availability and origination could reduce the demand for credit insurance that we write or debt cancellation or debt deferment products that we administer, and on the placement of hazard insurance under our lender-placed insurance programs.
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industry-wide investigations regarding business practices including, but not limited to, the use of the marketing of certain types of insurance policies or certificates of insurance;
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•
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actions by regulatory authorities that may restrict our ability to increase or maintain our premium rates, require us to reduce premium rates, imposes fines or penalties and result in other expenses;
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•
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market conduct examinations, for which we are required to pay the expenses of the regulator as well as our own expenses, and which may result in fines, penalties, or other adverse consequences;
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disputes regarding our lender-placed insurance products including those relating to rates, agent compensation, consumer disclosure, continuous coverage requirements, loan tracking services and other services that we provide to mortgage servicers;
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•
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disputes over coverage or claims adjudication;
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•
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disputes over our treatment of claims, in which states or insureds may allege that we failed to make required payments or to meet prescribed deadlines for adjudicating claims;
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•
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disputes regarding sales practices, disclosures, premium refunds, licensing, regulatory compliance, underwriting and compensation arrangements;
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•
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disputes alleging bundling of credit insurance and warranty products with other products provided by financial institutions;
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•
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disputes with tax and insurance authorities regarding our tax liabilities;
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•
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disputes relating to customers’ claims that the customer was not aware of the full cost or existence of the insurance or limitations on insurance coverage.
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•
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imposed reductions in premium rates, limitations on the ability to raise premiums on existing policies, or new minimum loss ratios;
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•
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increases in minimum capital, reserves and other financial viability requirements;
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•
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enhanced or new regulatory requirements intended to prevent future financial crises or to otherwise ensure the stability of institutions;
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•
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new licensing requirements;
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•
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restrictions on the ability to offer certain types of insurance products or service contracts;
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•
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prohibitions or limitations on provider financial incentives and provider risk-sharing arrangements;
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•
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more stringent standards of review for claims denials or coverage determinations;
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•
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increased regulation relating to lender-placed insurance;
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•
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new or enhanced regulatory requirements that require insurers to pay claims on terms other than those mandated by underlying policy contracts; and
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•
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restriction of solicitation of insurance consumers by funeral board laws for prefunded funeral insurance coverage.
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Base
Period
12/31/11
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INDEXED VALUES
Years Ending
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||||||||||||||||||
Company / Index
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12/31/12
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12/31/13
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12/31/14
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12/31/15
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12/31/16
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||||||||||||
Assurant, Inc.
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$100
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$
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86.44
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$
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168.42
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$
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176.42
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$
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211.58
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$
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249.97
|
|
S&P 500 Index
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100
|
|
116.00
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|
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153.57
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174.60
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|
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177.01
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198.18
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|||||
S&P 400 MidCap Index
|
100
|
|
117.88
|
|
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157.37
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|
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172.74
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168.98
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|
|
204.03
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|||||
S&P 500 Multi-line Insurance Index*
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100
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|
126.70
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187.39
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|
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196.32
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|
|
210.54
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|
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232.17
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|||||
S&P 400 Multi-line Insurance Index*
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100
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|
119.90
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|
|
165.71
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|
|
181.24
|
|
|
225.59
|
|
|
281.75
|
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|||||
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||||||||||
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ANNUAL RETURN PERCENTAGE
Years Ending
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||||||||||||||||||
Company / Index
|
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12/31/12
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12/31/13
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12/31/14
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12/31/15
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12/31/16
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||||||||||
Assurant, Inc.
|
|
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(13.56
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)%
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94.85
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%
|
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4.75
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%
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19.93
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%
|
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18.14
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%
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|||||
S&P 500 Index
|
|
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16.00
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|
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32.39
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13.69
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1.38
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|
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11.96
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|
|||||
S&P 400 MidCap Index
|
|
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17.88
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|
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33.50
|
|
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9.77
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(2.18
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)
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20.74
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|||||
S&P 500 Multi-line Insurance Index*
|
|
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26.70
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|
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47.90
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4.77
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|
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7.24
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10.27
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|||||
S&P 400 Multi-line Insurance Index*
|
|
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19.90
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|
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38.21
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|
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9.37
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24.47
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24.90
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*
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S&P 400 Multi-line Insurance Index is comprised of mid-cap companies, while the S&P 500 Multi-line Insurance Index is comprised of large-cap companies.
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Year Ended December 31, 2016
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High
|
|
Low
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Dividends
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||||||
First Quarter
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$
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81.31
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|
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$
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66.23
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|
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$
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0.50
|
|
Second Quarter
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$
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88.67
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$
|
77.09
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|
|
$
|
0.50
|
|
Third Quarter
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$
|
92.25
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|
|
$
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83.01
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|
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$
|
0.50
|
|
Fourth Quarter
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$
|
93.74
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|
|
$
|
78.72
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|
|
$
|
0.53
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|
|
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|
||||||
Year Ended December 31, 2015
|
High
|
|
Low
|
|
Dividends
|
||||||
First Quarter
|
$
|
67.77
|
|
|
$
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60.22
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|
|
$
|
0.27
|
|
Second Quarter
|
$
|
68.87
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|
|
$
|
59.86
|
|
|
$
|
0.30
|
|
Third Quarter
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$
|
79.60
|
|
|
$
|
68.14
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|
|
$
|
0.30
|
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Fourth Quarter
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$
|
86.81
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|
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$
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78.25
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|
|
$
|
0.50
|
|
Period in 2016
|
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 Repurchased
Under the Programs (1)
|
||||||
January 1 – January 31
|
1,147,337
|
|
|
$
|
78.44
|
|
|
1,147,337
|
|
|
$
|
862,125
|
|
February 1 – February 28
|
869,898
|
|
|
70.69
|
|
|
869,898
|
|
|
800,645
|
|
||
March 1 – March 31
|
1,405,025
|
|
|
76.12
|
|
|
1,405,025
|
|
|
693,717
|
|
||
Total first quarter
|
3,422,260
|
|
|
75.52
|
|
|
3,422,260
|
|
|
693,717
|
|
||
April 1 – April 30
|
1,033,098
|
|
|
79.90
|
|
|
1,033,098
|
|
|
611,195
|
|
||
May 1 – May 31
|
845,869
|
|
|
87.01
|
|
|
845,869
|
|
|
537,609
|
|
||
June 1 – June 30
|
439,031
|
|
|
84.75
|
|
|
439,031
|
|
|
500,406
|
|
||
Total second quarter
|
2,317,998
|
|
|
83.41
|
|
|
2,317,998
|
|
|
500,406
|
|
||
July 1 – July 31
|
485,725
|
|
|
86.61
|
|
|
485,725
|
|
|
458,345
|
|
||
August 1 – August 31
|
1,177,372
|
|
|
85.92
|
|
|
1,177,372
|
|
|
357,213
|
|
||
September 1 – September 30
|
1,028,006
|
|
|
89.92
|
|
|
1,028,006
|
|
|
264,798
|
|
||
Total third quarter
|
2,691,103
|
|
|
87.57
|
|
|
2,691,103
|
|
|
264,798
|
|
||
October 1 – October 31
|
1,065,648
|
|
|
86.96
|
|
|
1,065,648
|
|
|
172,147
|
|
||
November 1 – November 30
|
539,943
|
|
|
83.79
|
|
|
539,943
|
|
|
726,918
|
|
||
December 1 – December 31
|
481,600
|
|
|
91.38
|
|
|
481,600
|
|
|
682,920
|
|
||
Total fourth quarter
|
2,087,191
|
|
|
87.16
|
|
|
2,087,191
|
|
|
682,920
|
|
||
Total January 1 through December 31
|
10,518,552
|
|
|
$
|
82.65
|
|
|
10,518,552
|
|
|
$
|
682,920
|
|
(1)
|
Shares purchased pursuant to the November 14, 2016 publicly announced share repurchase authorization of up to $600,000 of outstanding common stock.
|
|
As of and for the years ended December 31,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2013
|
|
2012
|
||||||||||
Consolidated Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earned premiums (1)
|
$
|
5,007,364
|
|
|
$
|
8,350,997
|
|
|
$
|
8,632,142
|
|
|
$
|
7,759,796
|
|
|
$
|
7,236,984
|
|
Fees and other income
|
1,422,464
|
|
|
1,303,466
|
|
|
1,033,805
|
|
|
586,730
|
|
|
475,392
|
|
|||||
Net investment income
|
515,678
|
|
|
626,217
|
|
|
656,429
|
|
|
650,296
|
|
|
713,128
|
|
|||||
Net realized gains on investments (2)
|
162,183
|
|
|
31,826
|
|
|
60,783
|
|
|
34,525
|
|
|
64,353
|
|
|||||
Amortization of deferred gains and gains on disposal of businesses
|
394,513
|
|
|
12,988
|
|
|
(1,506
|
)
|
|
16,310
|
|
|
18,413
|
|
|||||
Gain on pension plan curtailment
|
29,578
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total revenues
|
7,531,780
|
|
|
10,325,494
|
|
|
10,381,653
|
|
|
9,047,657
|
|
|
8,508,270
|
|
|||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits (3)
|
1,808,472
|
|
|
4,742,535
|
|
|
4,405,333
|
|
|
3,675,532
|
|
|
3,655,404
|
|
|||||
Amortization of deferred acquisition costs and value of businesses acquired
|
1,351,314
|
|
|
1,402,573
|
|
|
1,485,558
|
|
|
1,470,287
|
|
|
1,403,215
|
|
|||||
Underwriting, general and administrative expenses
|
3,442,756
|
|
|
3,924,089
|
|
|
3,688,230
|
|
|
3,034,404
|
|
|
2,631,594
|
|
|||||
Interest expense
|
57,619
|
|
|
55,116
|
|
|
58,395
|
|
|
77,735
|
|
|
60,306
|
|
|||||
Loss on extinguishment of debt
|
23,031
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total benefits, losses and expenses
|
6,683,192
|
|
|
10,124,313
|
|
|
9,637,516
|
|
|
8,257,958
|
|
|
7,750,519
|
|
|||||
Income before provision for income taxes
|
848,588
|
|
|
201,181
|
|
|
744,137
|
|
|
789,699
|
|
|
757,751
|
|
|||||
Provision for income taxes
|
283,238
|
|
|
59,626
|
|
|
273,230
|
|
|
300,792
|
|
|
274,046
|
|
|||||
Net income
|
$
|
565,350
|
|
|
$
|
141,555
|
|
|
$
|
470,907
|
|
|
$
|
488,907
|
|
|
$
|
483,705
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
9.23
|
|
|
$
|
2.08
|
|
|
$
|
6.52
|
|
|
$
|
6.38
|
|
|
$
|
5.74
|
|
Diluted
|
$
|
9.13
|
|
|
$
|
2.05
|
|
|
$
|
6.44
|
|
|
$
|
6.30
|
|
|
$
|
5.67
|
|
Dividends per share
|
$
|
2.03
|
|
|
$
|
1.37
|
|
|
$
|
1.06
|
|
|
$
|
0.96
|
|
|
$
|
0.81
|
|
Share data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares outstanding used in basic per share calculations
|
61,261,288
|
|
|
68,163,825
|
|
|
72,181,447
|
|
|
76,648,688
|
|
|
84,276,427
|
|
|||||
Plus: Dilutive securities
|
673,486
|
|
|
853,384
|
|
|
970,563
|
|
|
1,006,076
|
|
|
1,030,638
|
|
|||||
Weighted average shares used in diluted per share calculations
|
61,934,774
|
|
|
69,017,209
|
|
|
73,152,010
|
|
|
77,654,764
|
|
|
85,307,065
|
|
|||||
Selected Consolidated Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents and investments
|
$
|
12,511,047
|
|
|
$
|
14,283,077
|
|
|
$
|
15,450,108
|
|
|
$
|
15,961,199
|
|
|
$
|
15,885,722
|
|
Total assets
|
$
|
29,709,128
|
|
|
$
|
30,036,402
|
|
|
$
|
31,554,881
|
|
|
$
|
29,706,273
|
|
|
$
|
28,942,565
|
|
Policy liabilities (4)
|
$
|
20,040,660
|
|
|
$
|
19,787,133
|
|
|
$
|
19,711,953
|
|
|
$
|
18,698,615
|
|
|
$
|
18,666,355
|
|
Debt
|
$
|
1,067,020
|
|
|
$
|
1,164,656
|
|
|
$
|
1,163,494
|
|
|
$
|
1,629,702
|
|
|
$
|
968,357
|
|
Total stockholders’ equity
|
$
|
4,098,100
|
|
|
$
|
4,523,967
|
|
|
$
|
5,181,307
|
|
|
$
|
4,833,479
|
|
|
$
|
5,185,366
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total book value per basic share (5)
|
$
|
72.33
|
|
|
$
|
67.92
|
|
|
$
|
73.73
|
|
|
$
|
66.23
|
|
|
$
|
64.93
|
|
(1)
|
The decline in 2016 primarily relates to the Assurant Health wind-down and the sale of our Assurant Employee Benefits segment.
|
(2)
|
Included in net realized gains are other-than-temporary impairments of $6,874, $5,024, $30, $4,387 and $1,843 for 2016, 2015, 2014, 2013 and 2012, respectively.
|
(3)
|
The decline in 2016 primarily relates to lower losses from Assurant Health and only two months of results of AEB prior to its sale. 2016 includes $157,437 of reportable catastrophe losses primarily related to Hurricane Matthew and flooding. 2015 includes higher loss experience and adverse claim development on 2015 individual major medical policies. During 2012, we incurred losses of $250,206, net of reinsurance, mainly associated with Superstorm Sandy. Reportable catastrophe losses include only individual catastrophic events that generated losses to the Company in excess of $5,000, pre-tax and net of reinsurance.
|
(4)
|
Policy liabilities include future policy benefits and expenses, unearned premiums and claims and benefits payable.
|
(5)
|
Total stockholders’ equity divided by the basic shares outstanding for book value per basic share calculation. At December 31, 2016, 2015, 2014, 2013, and 2012 there were 56,660,642, 66,606,258, 70,276,896, 72,982,023 and 79,866,858 shares, respectively, outstanding.
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||||||||||||||||||||
|
|
|
|
|
Claims and Benefits
Payable
|
|
|
|
|
|
Claims and Benefits
Payable
|
||||||||||||||||||||
|
Future
Policy
Benefits and
Expenses
|
|
Unearned
Premiums
|
|
Case
Reserves
|
|
Incurred
But Not
Reported
Reserves
|
|
Future
Policy
Benefits and
Expenses
|
|
Unearned
Premiums
|
|
Case
Reserves
|
|
Incurred
But Not
Reported
Reserves
|
||||||||||||||||
Long Duration Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Global Preneed
|
$
|
5,401,379
|
|
|
$
|
111,887
|
|
|
$
|
16,593
|
|
|
$
|
7,856
|
|
|
$
|
5,082,545
|
|
|
$
|
135,038
|
|
|
$
|
16,674
|
|
|
$
|
7,464
|
|
Disposed and runoff businesses
|
4,573,778
|
|
|
37,930
|
|
|
1,161,816
|
|
|
143,836
|
|
|
4,230,348
|
|
|
48,201
|
|
|
987,263
|
|
|
116,738
|
|
||||||||
All other
|
137,721
|
|
|
158
|
|
|
1,026
|
|
|
1,485
|
|
|
153,801
|
|
|
118
|
|
|
773
|
|
|
1,674
|
|
||||||||
Short Duration Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Global Lifestyle
|
—
|
|
|
5,041,571
|
|
|
78,136
|
|
|
181,355
|
|
|
—
|
|
|
4,822,633
|
|
|
81,980
|
|
|
173,513
|
|
||||||||
Global Housing
|
—
|
|
|
1,424,224
|
|
|
220,211
|
|
|
357,399
|
|
|
—
|
|
|
1,382,668
|
|
|
130,455
|
|
|
394,853
|
|
||||||||
Disposed and runoff businesses
|
—
|
|
|
10,755
|
|
|
991,491
|
|
|
140,053
|
|
|
—
|
|
|
35,062
|
|
|
1,518,709
|
|
|
466,623
|
|
||||||||
Total
|
$
|
10,112,878
|
|
|
$
|
6,626,525
|
|
|
$
|
2,469,273
|
|
|
$
|
831,984
|
|
|
$
|
9,466,694
|
|
|
$
|
6,423,720
|
|
|
$
|
2,735,854
|
|
|
$
|
1,160,865
|
|
•
|
the nature and extent of the underlying assumptions;
|
•
|
the quality and applicability of historical data - whether internal or industry data;
|
•
|
current and expected future economic and market conditions;
|
•
|
regulatory, legislative, and judicial considerations;
|
•
|
the extent of data segmentation - data should be homogeneous yet credible enough for loss development methods to apply;
|
•
|
trends in loss frequencies and severities for various causes of loss;
|
•
|
consideration of the positive skew in the distribution of loss reserves, resulting in the best estimate likely exceeding an estimate based on median values, suggesting that favorable development may be more likely than unfavorable development; and
|
•
|
hindsight testing of prior loss estimates - the loss estimates on some product lines will vary from actual loss experience more than others.
|
Change in both loss frequency and severity
for all Global Housing and Global Lifestyle
|
Ultimate cost of claims
occurring in 2016
|
|
Change in cost of claims
occurring in 2016
|
||||
3% higher
|
$
|
888,080
|
|
|
$
|
50,979
|
|
2% higher
|
$
|
870,920
|
|
|
$
|
33,819
|
|
1% higher
|
$
|
853,927
|
|
|
$
|
16,826
|
|
Base scenario (1)
|
$
|
837,101
|
|
|
$
|
—
|
|
1% lower
|
$
|
820,275
|
|
|
$
|
(16,826
|
)
|
2% lower
|
$
|
803,282
|
|
|
$
|
(33,819
|
)
|
3% lower
|
$
|
786,122
|
|
|
$
|
(50,979
|
)
|
(1)
|
Represents the sum of the case reserves and incurred but not reported reserves as of December 31, 2016 for Global Housing and Global Lifestyle.
|
|
December 31, 2016
|
|
December 31, 2015
|
||||
Reinsurance recoverables
|
$
|
9,083,207
|
|
|
$
|
7,470,403
|
|
|
2016
|
|
2015
|
||||
Ceded future policyholder benefits and expense
|
$
|
4,523,295
|
|
|
$
|
4,037,682
|
|
Ceded unearned premium
|
1,836,609
|
|
|
1,667,228
|
|
||
Ceded claims and benefits payable
|
2,643,203
|
|
|
1,429,128
|
|
||
Ceded paid losses
|
80,100
|
|
|
336,365
|
|
||
Total
|
$
|
9,083,207
|
|
|
$
|
7,470,403
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Net earned premiums
|
$
|
5,007,364
|
|
|
$
|
8,350,997
|
|
|
$
|
8,632,142
|
|
Fees and other income
|
1,422,464
|
|
|
1,303,466
|
|
|
1,033,805
|
|
|||
Net investment income
|
515,678
|
|
|
626,217
|
|
|
656,429
|
|
|||
Net realized gains on investments
|
162,183
|
|
|
31,826
|
|
|
60,783
|
|
|||
Amortization of deferred gains and gains on disposal of businesses
|
394,513
|
|
|
12,988
|
|
|
(1,506
|
)
|
|||
Gain on pension plan curtailment
|
29,578
|
|
|
—
|
|
|
—
|
|
|||
Total revenues
|
7,531,780
|
|
|
10,325,494
|
|
|
10,381,653
|
|
|||
Benefits, losses and expenses:
|
|
|
|
|
|
||||||
Policyholder benefits
|
1,808,472
|
|
|
4,742,535
|
|
|
4,405,333
|
|
|||
Selling, underwriting and general expenses
|
4,794,070
|
|
|
5,326,662
|
|
|
5,173,788
|
|
|||
Interest expense
|
57,619
|
|
|
55,116
|
|
|
58,395
|
|
|||
Total benefits, losses and expenses
|
6,683,192
|
|
|
10,124,313
|
|
|
9,637,516
|
|
|||
Income before provision for income taxes
|
848,588
|
|
|
201,181
|
|
|
744,137
|
|
|||
Provision for income taxes
|
283,238
|
|
|
59,626
|
|
|
273,230
|
|
|||
Net income
|
$
|
565,350
|
|
|
$
|
141,555
|
|
|
$
|
470,907
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Net earned premiums
|
$
|
1,829,112
|
|
|
$
|
2,044,701
|
|
|
$
|
2,506,097
|
|
Fees and other income
|
459,689
|
|
|
405,545
|
|
|
301,048
|
|
|||
Net investment income
|
72,713
|
|
|
92,859
|
|
|
101,908
|
|
|||
Total revenues
|
2,361,514
|
|
|
2,543,105
|
|
|
2,909,053
|
|
|||
Benefits, losses and expenses:
|
|
|
|
|
|
||||||
Policyholder benefits
|
828,565
|
|
|
788,549
|
|
|
1,085,339
|
|
|||
Selling, underwriting and general expenses
|
1,251,911
|
|
|
1,290,937
|
|
|
1,305,286
|
|
|||
Total benefits, losses and expenses
|
2,080,476
|
|
|
2,079,486
|
|
|
2,390,625
|
|
|||
Segment income before provision for income taxes
|
281,038
|
|
|
463,619
|
|
|
518,428
|
|
|||
Provision for income taxes
|
92,372
|
|
|
155,914
|
|
|
176,671
|
|
|||
Segment net income
|
$
|
188,666
|
|
|
$
|
307,705
|
|
|
$
|
341,757
|
|
Net earned premiums, fees and other:
|
|
|
|
|
|
||||||
Lender-placed insurance
|
$
|
1,317,190
|
|
|
$
|
1,561,396
|
|
|
$
|
1,849,149
|
|
Multi-family housing
|
320,941
|
|
|
282,680
|
|
|
232,252
|
|
|||
Mortgage solutions
|
329,265
|
|
|
289,575
|
|
|
189,396
|
|
|||
Manufactured housing and other
|
321,405
|
|
|
316,595
|
|
|
536,348
|
|
|||
Total
|
$
|
2,288,801
|
|
|
$
|
2,450,246
|
|
|
$
|
2,807,145
|
|
Ratios:
|
|
|
|
|
|
||||||
Combined ratio for risk-based businesses (1)
|
91.1
|
%
|
|
83.4
|
%
|
|
83.9
|
%
|
|||
Pre-tax income margin for fee-based, capital-light businesses (2)
|
10.8
|
%
|
|
11.6
|
%
|
|
8.9
|
%
|
(1)
|
The combined ratio for risk-based businesses is equal to total benefits, losses and expenses, including reportable catastrophe losses, divided by net earned premiums and fees and other income for lender-placed insurance including manufactured housing and other insurance businesses.
|
(2)
|
The pre-tax margin for fee-based, capital-light businesses equals income before provision for income taxes divided by net earned premiums and fees and other income for multi-family housing and mortgage solutions.
|
|
For the Years Ended
December 31, |
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Net earned premiums
|
$
|
2,901,480
|
|
|
$
|
2,955,443
|
|
|
$
|
3,067,775
|
|
Fees and other income
|
804,687
|
|
|
678,573
|
|
|
560,806
|
|
|||
Net investment income
|
113,085
|
|
|
126,855
|
|
|
128,978
|
|
|||
Total revenues
|
3,819,252
|
|
|
3,760,871
|
|
|
3,757,559
|
|
|||
Benefits, losses and expenses:
|
|
|
|
|
|
||||||
Policyholder benefits
|
663,781
|
|
|
679,750
|
|
|
777,568
|
|
|||
Selling, underwriting and general expenses
|
2,947,702
|
|
|
2,869,760
|
|
|
2,715,543
|
|
|||
Total benefits, losses and expenses
|
3,611,483
|
|
|
3,549,510
|
|
|
3,493,111
|
|
|||
Segment income before provision for income taxes
|
207,769
|
|
|
211,361
|
|
|
264,448
|
|
|||
Provision for income taxes
|
53,344
|
|
|
58,357
|
|
|
87,610
|
|
|||
Segment net income
|
$
|
154,425
|
|
|
$
|
153,004
|
|
|
$
|
176,838
|
|
Net earned premiums, fees and other:
|
|
|
|
|
|
||||||
Global connected living (mobile and service contracts)
|
$
|
2,570,143
|
|
|
$
|
2,550,990
|
|
|
$
|
2,553,848
|
|
Global vehicle protection services
|
715,794
|
|
|
608,372
|
|
|
503,308
|
|
|||
Global credit and other
|
420,230
|
|
|
474,654
|
|
|
571,425
|
|
|||
Total
|
$
|
3,706,167
|
|
|
$
|
3,634,016
|
|
|
$
|
3,628,581
|
|
Net earned premiums, fees and other:
|
|
|
|
|
|
||||||
Domestic
|
$
|
2,561,632
|
|
|
$
|
2,409,300
|
|
|
$
|
2,328,929
|
|
International
|
1,144,535
|
|
|
1,224,716
|
|
|
1,299,652
|
|
|||
Total
|
$
|
3,706,167
|
|
|
$
|
3,634,016
|
|
|
$
|
3,628,581
|
|
Ratios:
|
|
|
|
|
|
||||||
Combined ratio for risk-based businesses (1)
|
95.9
|
%
|
|
95.5
|
%
|
|
95.9
|
%
|
|||
Pre-tax income margin for fee-based, capital-light businesses (2)
|
3.5
|
%
|
|
3.6
|
%
|
|
5.9
|
%
|
(1)
|
The combined ratio for risk-based businesses is equal to total benefits, losses and expenses divided by net earned premiums and fees and other income for global vehicle protection services, global credit and other insurance businesses.
|
(2)
|
The pre-tax income margin for fee-based, capital-light businesses equals income before provision for income taxes divided by net earned premiums and fees and other income for global connected living.
|
|
For the Years Ended
December 31, |
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Net earned premiums
|
$
|
61,691
|
|
|
$
|
60,403
|
|
|
$
|
61,093
|
|
Fees and other income
|
109,588
|
|
|
107,038
|
|
|
107,046
|
|
|||
Net investment income
|
259,755
|
|
|
249,828
|
|
|
253,662
|
|
|||
Total revenues
|
431,034
|
|
|
417,269
|
|
|
421,801
|
|
|||
Benefits, losses and expenses:
|
|
|
|
|
|
||||||
Policyholder benefits
|
250,370
|
|
|
239,653
|
|
|
249,901
|
|
|||
Selling, underwriting and general expenses
|
116,837
|
|
|
112,503
|
|
|
114,515
|
|
|||
Total benefits, losses and expenses
|
367,207
|
|
|
352,156
|
|
|
364,416
|
|
|||
Segment income before provision for income taxes
|
63,827
|
|
|
65,113
|
|
|
57,385
|
|
|||
Provision for income taxes
|
21,523
|
|
|
20,934
|
|
|
15,275
|
|
|||
Segment net income
|
$
|
42,304
|
|
|
$
|
44,179
|
|
|
$
|
42,110
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Net earned premiums
|
$
|
177,971
|
|
|
$
|
1,066,754
|
|
|
$
|
1,051,725
|
|
Fees and other income
|
4,244
|
|
|
25,006
|
|
|
24,204
|
|
|||
Net investment income
|
17,340
|
|
|
110,998
|
|
|
117,192
|
|
|||
Total revenues
|
199,555
|
|
|
1,202,758
|
|
|
1,193,121
|
|
|||
Benefits, losses and expenses:
|
|
|
|
|
|
||||||
Policyholder benefits
|
118,481
|
|
|
730,192
|
|
|
716,892
|
|
|||
Selling, underwriting and general expenses
|
67,365
|
|
|
398,757
|
|
|
399,548
|
|
|||
Total benefits, losses and expenses
|
185,846
|
|
|
1,128,949
|
|
|
1,116,440
|
|
|||
Segment income before provision for income taxes
|
13,709
|
|
|
73,809
|
|
|
76,681
|
|
|||
Provision for income taxes
|
5,272
|
|
|
26,487
|
|
|
28,000
|
|
|||
Segment net income
|
$
|
8,437
|
|
|
$
|
47,322
|
|
|
$
|
48,681
|
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||||||||||||||
|
Corporate
& Other |
|
Health
|
|
Total Corporate & Other
|
|
Corporate
& Other |
|
Health
|
|
Total Corporate & Other
|
|
Corporate
& Other |
|
Health
|
|
Total Corporate & Other
|
||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Net earned premiums
|
$
|
—
|
|
|
$
|
37,110
|
|
|
$
|
37,110
|
|
|
$
|
—
|
|
|
$
|
2,223,696
|
|
|
$
|
2,223,696
|
|
|
$
|
—
|
|
|
$
|
1,945,452
|
|
|
$
|
1,945,452
|
|
Fees and other income
|
24,418
|
|
|
19,838
|
|
|
44,256
|
|
|
32,682
|
|
|
54,622
|
|
|
87,304
|
|
|
685
|
|
|
40,016
|
|
|
40,701
|
|
|||||||||
Net investment income
|
43,996
|
|
|
8,789
|
|
|
52,785
|
|
|
21,190
|
|
|
24,487
|
|
|
45,677
|
|
|
19,320
|
|
|
35,369
|
|
|
54,689
|
|
|||||||||
Net realized gains on investments
|
162,183
|
|
|
—
|
|
|
162,183
|
|
|
31,826
|
|
|
—
|
|
|
31,826
|
|
|
60,783
|
|
|
—
|
|
|
60,783
|
|
|||||||||
Amortization of deferred gains and gains on disposal of businesses
|
394,513
|
|
|
—
|
|
|
394,513
|
|
|
12,988
|
|
|
—
|
|
|
12,988
|
|
|
(1,506
|
)
|
|
—
|
|
|
(1,506
|
)
|
|||||||||
Gain on pension plan curtailment
|
29,578
|
|
|
—
|
|
|
29,578
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total revenues
|
654,688
|
|
|
65,737
|
|
|
720,425
|
|
|
98,686
|
|
|
2,302,805
|
|
|
2,401,491
|
|
|
79,282
|
|
|
2,020,837
|
|
|
2,100,119
|
|
|||||||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Policyholder benefits
|
—
|
|
|
(52,725
|
)
|
|
(52,725
|
)
|
|
3,150
|
|
|
2,301,241
|
|
|
2,304,391
|
|
|
—
|
|
|
1,575,633
|
|
|
1,575,633
|
|
|||||||||
Selling, underwriting and general expenses
|
244,496
|
|
|
165,759
|
|
|
410,255
|
|
|
127,285
|
|
|
527,420
|
|
|
654,705
|
|
|
143,078
|
|
|
495,818
|
|
|
638,896
|
|
|||||||||
Interest expense
|
57,619
|
|
|
—
|
|
|
57,619
|
|
|
55,116
|
|
|
—
|
|
|
55,116
|
|
|
58,395
|
|
|
—
|
|
|
58,395
|
|
|||||||||
Loss on extinguishment of debt
|
23,031
|
|
|
—
|
|
|
23,031
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
Total benefits, losses and expenses
|
325,146
|
|
|
113,034
|
|
|
438,180
|
|
|
185,551
|
|
|
2,828,661
|
|
|
3,014,212
|
|
|
201,473
|
|
|
2,071,451
|
|
|
2,272,924
|
|
|||||||||
Segment income (loss) before benefit for income taxes
|
329,542
|
|
|
(47,297
|
)
|
|
282,245
|
|
|
(86,865
|
)
|
|
(525,856
|
)
|
|
(612,721
|
)
|
|
(122,191
|
)
|
|
(50,614
|
)
|
|
(172,805
|
)
|
|||||||||
Provision (Benefit) for income taxes
|
116,983
|
|
|
(6,256
|
)
|
|
110,727
|
|
|
(44,117
|
)
|
|
(157,949
|
)
|
|
(202,066
|
)
|
|
(47,460
|
)
|
|
13,134
|
|
|
(34,326
|
)
|
|||||||||
Segment net income (loss)
|
$
|
212,559
|
|
|
$
|
(41,041
|
)
|
|
$
|
171,518
|
|
|
$
|
(42,748
|
)
|
|
$
|
(367,907
|
)
|
|
$
|
(410,655
|
)
|
|
$
|
(74,731
|
)
|
|
$
|
(63,748
|
)
|
|
$
|
(138,479
|
)
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Fixed maturity securities
|
$
|
419,347
|
|
|
$
|
486,165
|
|
|
$
|
522,309
|
|
Equity securities
|
25,161
|
|
|
29,957
|
|
|
28,014
|
|
|||
Commercial mortgage loans on real estate
|
41,669
|
|
|
72,658
|
|
|
73,959
|
|
|||
Policy loans
|
2,577
|
|
|
2,478
|
|
|
2,939
|
|
|||
Short-term investments
|
5,508
|
|
|
2,033
|
|
|
1,950
|
|
|||
Other investments
|
21,671
|
|
|
37,759
|
|
|
34,527
|
|
|||
Cash and cash equivalents
|
17,462
|
|
|
18,416
|
|
|
18,556
|
|
|||
Total investment income
|
533,395
|
|
|
649,466
|
|
|
682,254
|
|
|||
Investment expenses
|
(17,717
|
)
|
|
(23,249
|
)
|
|
(25,825
|
)
|
|||
Net investment income
|
$
|
515,678
|
|
|
$
|
626,217
|
|
|
$
|
656,429
|
|
•
|
Removed ratings of Union Security Insurance Company and Union Security Life Insurance Company of New York from under review with negative implications and affirmed with a stable outlook.
|
•
|
Ratings of Assurant's senior debt were upgraded from bbb to bbb+.
|
•
|
Ratings of Assurant's commercial paper were upgraded from AMB-2 to AMB-1.
|
•
|
Ratings of all other rated entities were affirmed with a stable outlook.
|
•
|
Rating of Union Security Insurance Company was affirmed and the outlook revised from developing to stable.
|
•
|
Withdrew the ratings of John Alden Life Insurance Company and Time Insurance Company.
|
•
|
All other ratings remain unchanged.
|
•
|
Rating of Union Security Insurance Company was upgraded from A- to A.
|
•
|
Withdrew the ratings of John Alden Life Insurance Company and Time Insurance Company.
|
•
|
All other ratings remain unchanged.
|
(i)
|
Maintenance of a maximum debt to total capitalization ratio on the last day of any fiscal quarter of not greater than
35%
, and
|
(ii)
|
Maintenance of a consolidated adjusted net worth in an amount not less than the “Minimum Amount”. For the purpose of this calculation the “Minimum Amount” is an amount equal to the sum of (a) the base amount
$3,317,000
plus (b)
25%
of consolidated net income for each fiscal quarter (if positive) ending after
June 30,
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Net cash provided by (used in):
|
|
|
|
|
|
||||||
Operating activities (1)
|
$
|
124,238
|
|
|
$
|
192,483
|
|
|
$
|
313,782
|
|
Investing activities
|
725,621
|
|
|
264,293
|
|
|
63,889
|
|
|||
Financing activities
|
(1,106,193
|
)
|
|
(487,127
|
)
|
|
(776,199
|
)
|
|||
Net change in cash
|
$
|
(256,334
|
)
|
|
$
|
(30,351
|
)
|
|
$
|
(398,528
|
)
|
(1)
|
Includes effect of exchange rates changes and the reclassification of assets held for sale on cash and cash equivalents.
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Income taxes paid
|
$
|
226,078
|
|
|
$
|
80,140
|
|
|
$
|
247,771
|
|
Interest paid on debt
|
56,161
|
|
|
54,813
|
|
|
68,875
|
|
|||
Common stock dividends
|
125,346
|
|
|
94,168
|
|
|
77,495
|
|
|||
Total
|
$
|
407,585
|
|
|
$
|
229,121
|
|
|
$
|
394,141
|
|
|
As of December 31, 2016
|
||||||||||||||||||
|
Total
|
|
Less than 1
Year
|
|
1-3
Years
|
|
3-5
Years
|
|
More than 5
Years
|
||||||||||
Contractual obligations
:
|
|
|
|
|
|
|
|
|
|
||||||||||
Insurance liabilities (1)
|
$
|
7,827,321
|
|
|
$
|
964,275
|
|
|
$
|
709,702
|
|
|
$
|
674,851
|
|
|
$
|
5,478,493
|
|
Debt and related interest
|
1,622,094
|
|
|
48,063
|
|
|
433,000
|
|
|
78,625
|
|
|
1,062,406
|
|
|||||
Operating leases
|
83,221
|
|
|
23,779
|
|
|
35,041
|
|
|
18,586
|
|
|
5,815
|
|
|||||
Pension obligations and postretirement benefit
|
568,096
|
|
|
55,402
|
|
|
107,039
|
|
|
115,137
|
|
|
290,518
|
|
|||||
Commitments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment purchases outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial mortgage loans on real estate
|
7,500
|
|
|
7,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Liability for unrecognized tax benefit
|
34,544
|
|
|
—
|
|
|
29,979
|
|
|
—
|
|
|
4,565
|
|
|||||
Total obligations and commitments
|
$
|
10,142,776
|
|
|
$
|
1,099,019
|
|
|
$
|
1,314,761
|
|
|
$
|
887,199
|
|
|
$
|
6,841,797
|
|
|
December 31, 2016
|
|
December 31, 2015
|
||||||||||
Rating
|
Fair Value
|
|
Percentage of
Total
|
|
Fair Value
|
|
Percentage of
Total
|
||||||
Aaa/Aa/A
|
$
|
6,000,734
|
|
|
63
|
%
|
|
$
|
6,326,800
|
|
|
62
|
%
|
Baa
|
2,903,843
|
|
|
30
|
%
|
|
3,309,719
|
|
|
32
|
%
|
||
Ba
|
435,202
|
|
|
5
|
%
|
|
389,349
|
|
|
4
|
%
|
||
B and lower
|
232,366
|
|
|
2
|
%
|
|
189,460
|
|
|
2
|
%
|
||
Total
|
$
|
9,572,145
|
|
|
100
|
%
|
|
$
|
10,215,328
|
|
|
100
|
%
|
Foreign Exchange Movement Analysis
of Market Value of Fixed Maturity Securities Assets
|
||||||||||||||||||||
As of December 31, 2016
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange spot rate at December 31,
2016, US Dollar to Canadian Dollar
|
|
-10%
|
|
-5%
|
|
0
|
|
5%
|
|
10%
|
||||||||||
Total market value
|
|
$
|
9,415,840
|
|
|
$
|
9,493,993
|
|
|
$
|
9,572,145
|
|
|
$
|
9,650,297
|
|
|
$
|
9,728,450
|
|
% change of market value from base case
|
|
(1.63
|
)%
|
|
(0.82
|
)%
|
|
—
|
%
|
|
0.82
|
%
|
|
1.63
|
%
|
|||||
$ change of market value from base case
|
|
$
|
(156,305
|
)
|
|
$
|
(78,152
|
)
|
|
$
|
—
|
|
|
$
|
78,152
|
|
|
$
|
156,305
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of December 31, 2015
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign exchange spot rate at December 31,
2015, US Dollar to Canadian Dollar
|
|
-10%
|
|
-5%
|
|
0
|
|
5%
|
|
10%
|
||||||||||
Total market value
|
|
$
|
10,073,975
|
|
|
$
|
10,144,651
|
|
|
$
|
10,215,328
|
|
|
$
|
10,286,005
|
|
|
$
|
10,356,681
|
|
% change of market value from base case
|
|
(1.38
|
)%
|
|
(0.69
|
)%
|
|
—
|
%
|
|
0.69
|
%
|
|
1.38
|
%
|
|||||
$ change of market value from base case
|
|
$
|
(141,353
|
)
|
|
$
|
(70,677
|
)
|
|
$
|
—
|
|
|
$
|
70,677
|
|
|
$
|
141,353
|
|
Foreign Exchange Movement Analysis
of Net Income
|
||||||||||||||||||||
As of December 31, 2016
|
||||||||||||||||||||
Foreign exchange daily average rate for the year
ended December 31, 2016, US Dollar to Canadian
Dollar
|
|
-10%
|
|
-5%
|
|
0
|
|
5%
|
|
10%
|
||||||||||
Net Income
|
|
$
|
563,351
|
|
|
$
|
564,350
|
|
|
$
|
565,350
|
|
|
$
|
566,350
|
|
|
$
|
567,349
|
|
% change of net income from base case
|
|
(0.35
|
)%
|
|
(0.18
|
)%
|
|
—
|
%
|
|
0.18
|
%
|
|
0.35
|
%
|
|||||
$ change of net income from base case
|
|
$
|
(1,999
|
)
|
|
$
|
(1,000
|
)
|
|
$
|
—
|
|
|
$
|
1,000
|
|
|
$
|
1,999
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of December 31, 2015
|
||||||||||||||||||||
Foreign exchange daily average rate for the year
ended December 31, 2015, US Dollar to Canadian
Dollar
|
|
-10%
|
|
-5%
|
|
0
|
|
5%
|
|
10%
|
||||||||||
Net income
|
|
$
|
138,360
|
|
|
$
|
139,957
|
|
|
$
|
141,555
|
|
|
$
|
143,153
|
|
|
$
|
144,750
|
|
% change of net income from base case
|
|
(2.26
|
)%
|
|
(1.13
|
)%
|
|
—
|
%
|
|
1.13
|
%
|
|
2.26
|
%
|
|||||
$ change of net income from base case
|
|
$
|
(3,195
|
)
|
|
$
|
(1,598
|
)
|
|
$
|
—
|
|
|
$
|
1,598
|
|
|
$
|
3,195
|
|
|
Page(s)
|
Consolidated Financial Statements of Assurant, Inc.
|
|
Schedule I – Summary of Investments other than Investments in Related Parties
|
Schedule II – Parent Only Condensed Financial Statements
|
Schedule III – Supplementary Insurance Information
|
Schedule IV – Reinsurance
|
Schedule V – Valuation and Qualifying Accounts
|
*
|
All other schedules are omitted because they are not applicable, not required, or the information is included in the financial statements or the notes thereto.
|
Exhibit
Number
|
Exhibit Description
|
|
2.1
|
|
Master Transaction Agreement, dated as of September 9, 2015, by and between Assurant, Inc. and Sun Life Assurance Company of Canada (incorporated by reference to Exhibit 2.1 to the Registrant’s Current Report on Form 8-K, originally filed on September 10, 2015).
|
3.1
|
|
Restated Certificate of Incorporation of the Registrant (incorporated by reference from Exhibit 3.1 to the Registrant’s Form 10-Q, originally filed on August 5, 2010).
|
3.2
|
|
Amended and Restated By-Laws of the Registrant (incorporated by reference from Exhibit 3.1 to the Registrant’s Form 8-K, originally filed on May 17, 2011).
|
4.1
|
|
Specimen Common Stock Certificate (incorporated by reference from Exhibit 4.1 to the Registrant’s Registration Statement on Form S-1/A (File No. 333-109984) and amendments thereto, originally filed on January 13, 2004).
|
4.2
|
|
Senior Debt Indenture, dated as of February 18, 2004, between Assurant, Inc. and U.S. Bank National Association, successor to SunTrust Bank, as trustee (incorporated by reference from Exhibit 10.27 to the Registrant’s Form 10-K, originally filed on March 30, 2004).
|
4.3
|
|
Indenture, dated as of March 28, 2013, between Assurant, Inc. and U.S. Bank National Association, as trustee (incorporated by reference from Exhibit 4.1 to the Registrant’s Form 8-K, originally filed on March 28, 2013).
|
4.4
|
|
Pursuant to Item 601(b)(4)(iii) of Regulation S-K, the Registrant hereby agrees to furnish to the SEC, upon request, a copy of any other instrument defining the rights of holders of long-term debt of the Registrant and its subsidiaries.
|
10.1
|
|
Assurant, Inc. Amended and Restated Directors Compensation Plan, effective as of January 1, 2013 (incorporated by reference from Exhibit 10.1 to the Registrants Form 10-K, originally filed on February 20, 2013).*
|
10.2
|
|
Assurant, Inc. Amended and Restated Directors Compensation Plan, effective as of May 13, 2016 (incorporated by reference from Exhibit 10.6 to the Registrant’s Form 10-Q, originally filed on August 2, 2016). *
|
10.3
|
|
Form of Assurant, Inc. Restricted Stock Unit Award Agreement for Time-based Awards for Directors, effective as of January 1, 2013 (incorporated by reference from Exhibit 10.2 to the Registrants Form 10-K, originally filed on February 20, 2013).*
|
10.4
|
|
Form of Assurant, Inc. Restricted Stock Unit Award Agreement for Time-based Awards for Directors, effective as of January 1, 2013 (incorporated by reference from Exhibit 10.3 to the Registrants Form 10-K, originally filed on February 20, 2013).*
|
10.5
|
|
Amended and Restated Assurant, Inc. Long Term Equity Incentive Plan, effective as of January 1, 2012 (incorporated by reference from Exhibit 10.15 to the Registrant’s Form 10-K, originally filed on February 23, 2012).*
|
10.6
|
|
Form of Assurant, Inc. Restricted Stock Unit Award Agreement for Time-based Awards under the Assurant, Inc. Long Term Equity Incentive Plan (incorporated by reference from Exhibit 10.1 to the Registrant’s Form 8-K, originally filed on March 16, 2009).*
|
10.7
|
|
Form of Restricted Stock Unit Award Agreement for Time-based Awards under the Assurant, Inc. Long Term Equity Incentive Plan, dated May 10, 2016 (incorporated by reference from Exhibit 10.2 to the Registrant’s Form 10-Q, originally filed on August 2, 2016). *
|
10.8
|
|
Restricted Stock Unit Award Agreement for Time-based Awards under the Assurant, Inc. Long Term Equity Incentive Plan, dated July 18, 2016, by and between Assurant, Inc. and Richard Dziadzio (incorporated by reference from Exhibit 10.4 to the Registrant’s Form 10-Q, originally filed on August 2, 2016). *
|
10.9
|
|
Form of Assurant, Inc. Restricted Stock Unit Award Agreement for Time-based Awards under the Assurant, Inc. Long Term Equity Incentive Plan, effective March 10, 2016. (incorporated by reference from Exhibit 10.3 to the Registrant’s Form 10-Q, originally filed on May 3, 2016)*
|
10.10
|
|
Form of Assurant, Inc. Restricted Stock Unit Award Agreement for Performance-based Awards under the Assurant, Inc. Long Term Equity Incentive Plan (incorporated by reference from Exhibit 10.20 to the Registrant’s Form 10-K, originally filed on February 23, 2012).*
|
10.11
|
|
Form of Assurant, Inc. Restricted Stock Unit Award Agreement for Performance-based Awards under the Assurant, Inc. Long Term Equity Incentive Plan, effective March 10, 2016. (incorporated by reference from Exhibit 10.4 to the Registrant’s Form 10-Q, originally filed on May 3, 2016) *
|
10.12
|
|
Form of Assurant, Inc. Restricted Stock Unit Award Agreement for Performance-based Awards under the Assurant, Inc. Long Term Equity Incentive Plan for the Management Committee, effective March 10, 2016 (incorporated by reference from Exhibit 10.5 to the Registrant’s Form 10-Q, originally filed on May 3, 2016). *
|
10.13
|
|
Amended and Restated Assurant, Inc. Executive Short Term Incentive Plan, effective as of January 1, 2012 (incorporated by reference from Exhibit 10.23 to the Registrant’s Form 10-K, originally filed on February 23, 2012).*
|
10.14
|
|
Amended and Restated Assurant Deferred Compensation Plan (incorporated by reference from Exhibit 10.33 to the Registrant’s Form 10-K, originally filed on March 3, 2008).*
|
10.15
|
|
Amendment No. 1 to the Amended and Restated Assurant Deferred Compensation Plan, effective as of January 1, 2012 (incorporated by reference from Exhibit 10.28 to the Registrant’s Form 10-K, originally filed on February 23, 2012).*
|
10.16
|
|
Amendment No. 2 to the Amended and Restated Assurant Deferred Compensation Plan, effective as of December 3, 2013 (incorporated by reference from Exhibit 10.31 to the Registrant's Form 10-K, originally filed on February 18, 2014).*
|
10.17
|
|
Amended and Restated Supplemental Executive Retirement Plan (incorporated by reference from Exhibit 10.5 to the Registrant’s Form 10-K, originally filed on March 3, 2008).*
|
10.18
|
|
Amendment No. 1 to the Amended and Restated Supplemental Executive Retirement Plan, effective as of January 1, 2009 (incorporated by reference from Exhibit 10.6 to the Registrant’s Form 10-K, originally filed on February 27, 2009).*
|
10.19
|
|
Amendment No. 2 to the Amended and Restated Supplemental Executive Retirement Plan, effective as of January 1, 2010 (incorporated by reference from Exhibit 10.7 to the Registrant’s Form 10-K, originally filed on February 23, 2011).*
|
10.20
|
|
Amendment No. 3 to the Amended and Restated Supplemental Executive Retirement Plan, effective as of February 29, 2016. (incorporated by reference from Exhibit 10.2 to the Registrant’s Form 10-Q, originally filed on May 3, 2016)*
|
10.21
|
|
Assurant Executive Pension Plan, amended and restated effective as of January 1, 2009 (incorporated by reference from Exhibit 10.15 to the Registrant’s Form 10-K, originally filed on February 27, 2009).*
|
10.22
|
|
Amendment No. 1 to the Assurant Executive Pension Plan, effective as of January 1, 2009 (incorporated by reference from Exhibit 10.33 to the Registrant’s Form 10-K, originally filed on February 23, 2012).*
|
10.23
|
|
Amendment No. 2 to the Assurant Executive Pension Plan, effective as of January 1, 2010 (incorporated by reference from Exhibit 10.34 to the Registrant’s Form 10-K, originally filed on February 23, 2012).*
|
10.24
|
|
Amendment No. 3 to the Assurant Executive Pension Plan, effective as of December 31, 2013 (incorporated by reference from Exhibit 10.38 to the Registrant's Form 10-K, originally filed on February 18, 2014).*
|
10.25
|
|
Amendment No. 4 to the Assurant Executive Pension Plan, effective as of February 29, 2016. (incorporated by reference from Exhibit 10.1 to the Registrant’s Form 10-Q, originally filed on May 3, 2016) *
|
10.26
|
|
Assurant Executive 401(k) Plan, Amended and Restated Effective as of January 1, 2014 (incorporated by reference from Exhibit 10.1 to the Registrant’s Form 10-Q, originally filed on April 29, 2014).*
|
10.27
|
|
Amendment No.1 to the Assurant Executive 401(k) Plan, Amended and Restated, effective as of March 1, 2016.*
|
10.28
|
|
Form of Assurant, Inc. Change of Control Employment Agreement, dated as of January 1, 2009 (incorporated by reference from Exhibit 10.17 to the Registrant’s Form 10-K, originally filed on February 27, 2009).*
|
10.29
|
|
Form of Assurant, Inc. Change of Control Employment Agreement, dated as of January 1, 2009 (incorporated by reference from Exhibit 10.18 to the Registrant’s Form 10-K, originally filed on February 27, 2009).*
|
10.30
|
|
Form of Assurant, Inc. Change of Control Employment Agreement for Divisional Officers, dated as of January 1, 2009 (incorporated by reference from Exhibit 10.19 to the Registrant’s Form 10-K, originally filed on February 27, 2009).*
|
10.31
|
|
Form of Amendment to Assurant, Inc. Change of Control Employment Agreement, effective as of February 1, 2010 (incorporated by reference from Exhibit 10.1 to the Registrant’s Form 8-K, originally filed on February 1, 2010).*
|
10.32
|
|
Form of Assurant, Inc. Change in Control Agreement, dated May 13, 2016 (incorporated by reference from Exhibit 10.5 to the Registrant’s Form 10-Q, originally filed on August 2, 2016). *
|
10.33
|
|
American Security Insurance Company Investment Plan Document (incorporated by reference from Exhibit 10.34 to the Registrant’s Form 10-K, originally filed on March 3, 2008)*.
|
10.34
|
|
Credit Agreement, dated as of September 16, 2014, among Assurant, Inc., the lenders party thereto, JP Morgan Chase Bank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as syndication agent (incorporated by reference from Exhibit 10.1 to the Registrant’s Form 10-Q, originally filed on November 4, 2014).
|
10.35
|
|
Amendment No. 1, dated March 5, 2015, to the Credit Agreement, dated as of September 16, 2014, among Assurant, Inc., the lenders party thereto, JP Morgan Chase Bank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as syndication agent (incorporated by reference from Exhibit 10.1 to the Registrant’s Form 10-Q, originally filed on May 6, 2015).
|
10.36
|
|
Amendment No. 2, dated as of October 4, 2016, to the Credit Agreement, dated as of September 16, 2014, among Assurant, Inc., the lenders party thereto, JP Morgan Chase Bank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as syndication agent (incorporated by reference from Exhibit 10.1 to the Registrant’s Form 10-Q, originally filed on November 1 , 2016)
|
10.37
|
|
Employment Letter Agreement, dated April 21, 2008, by and between Assurant, Inc. and Bart Schwartz (incorporated by reference from Exhibit 10.38 to the Registrant’s Form 10-K, originally filed on February 25, 2010).*
|
10.38
|
|
Letter Agreement, dated October 11, 2010, by and between Assurant, Inc. and Alan Colberg (incorporated by reference from Exhibit 10.38 to the Registrant’s Form 10-K, originally filed on February 23, 2011).*
|
10.39
|
|
Employment Letter Agreement, dated March 8, 2016, by and between Assurant, Inc. and Ajay Waghray (incorporated by reference from Exhibit 10.1 to the Registrant’s Form 10-Q, originally filed on August 2, 2016). *
|
10.40
|
|
Employment Letter Agreement, dated April 26, 2016, by and between Assurant, Inc. and Richard Dziadzio (incorporated by reference from Exhibit 10.3 to the Registrant’s Form 10-Q, originally filed on August 2, 2016). *
|
10.41
|
|
Consulting Agreement, dated January 6, 2015, by and between Assurant, Inc. and John S. Roberts. (incorporated by reference from Exhibit 10.53 to the Registrant’s Form 10-K, originally filed on February 19, 2015) *
|
10.42
|
|
Retirement Agreement, dated June 29, 2016, by and between Assurant, Inc. and S. Craig Lemasters (incorporated by reference from Exhibit 10.7 to the Registrant’s Form 10-Q, originally filed on August 2, 2016). *
|
12.1
|
|
Computation of Ratio of Consolidated Earnings to Fixed Charges as of December 31, 2016.
|
12.2
|
|
Computation of Other Ratios as of December 31, 2016.
|
21.1
|
|
Subsidiaries of the Registrant.
|
23.1
|
|
Consent of PricewaterhouseCoopers LLP.
|
24.1
|
|
Power of Attorney.
|
31.1
|
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer.
|
31.2
|
|
Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer.
|
32.1
|
|
Certification of Chief Executive Officer of Assurant, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
|
Certification of Chief Financial Officer of Assurant, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101
|
|
The following materials from the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, 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 Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements.
|
|
|
|
ASSURANT, INC.
|
||
|
|
|
By:
|
|
/S/ ALAN B. COLBERG
|
Name:
|
|
Alan B. Colberg
|
Title:
|
|
Chief Executive Officer
|
Signature
|
|
Title
|
/S/ ALAN B. COLBERG
|
|
President, Chief Executive Officer and Director (Principal Executive Officer)
|
Alan B. Colberg
|
|
|
|
|
|
/S/ RICHARD S. DZIADZIO
|
|
Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)
|
Richard S. Dziadzio
|
|
|
|
|
|
/S/ JOHN A. SONDEJ
|
|
Senior Vice President and Controller (Principal Accounting Officer)
|
John A. Sondej
|
|
|
|
|
|
*
|
|
Non-Executive Board Chair
|
Elaine D. Rosen
|
|
|
|
|
|
*
|
|
Director
|
Howard L. Carver
|
|
|
|
|
|
*
|
|
Director
|
Juan N. Cento
|
|
|
|
|
|
*
|
|
Director
|
Elyse Douglas
|
|
|
|
|
|
*
|
|
Director
|
Lawrence V. Jackson
|
|
|
|
|
|
*
|
|
Director
|
Charles J. Koch
|
|
|
|
|
|
*
|
|
Director
|
Jean-Paul L. Montupet
|
|
|
|
|
|
*
|
|
Director
|
Paul J. Reilly
|
|
|
|
|
|
*
|
|
Director
|
Robert W. Stein
|
|
*By:
|
|
/S/ RICHARD S. DZIADZIO
|
Name:
|
|
Richard S. Dziadzio
|
|
|
Attorney-in-Fact
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(in thousands except number of shares
and per share amounts)
|
||||||
Assets
|
|
|
|
||||
Investments:
|
|
|
|
||||
Fixed maturity securities available for sale, at fair value (amortized cost – $8,870,837 in 2016 and
$9,470,795 in 2015) |
$
|
9,572,145
|
|
|
$
|
10,215,328
|
|
Equity securities available for sale, at fair value (cost – $381,831 in 2016 and $450,563 in 2015)
|
421,361
|
|
|
500,057
|
|
||
Commercial mortgage loans on real estate, at amortized cost
|
624,033
|
|
|
1,151,256
|
|
||
Policy loans
|
38,533
|
|
|
43,858
|
|
||
Short-term investments
|
227,740
|
|
|
508,950
|
|
||
Other investments
|
595,264
|
|
|
575,323
|
|
||
Total investments
|
11,479,076
|
|
|
12,994,772
|
|
||
Cash and cash equivalents
|
1,031,971
|
|
|
1,288,305
|
|
||
Premiums and accounts receivable, net
|
1,217,969
|
|
|
1,260,717
|
|
||
Reinsurance recoverables
|
9,083,207
|
|
|
7,470,403
|
|
||
Accrued investment income
|
110,075
|
|
|
129,743
|
|
||
Deferred acquisition costs
|
3,267,394
|
|
|
3,150,934
|
|
||
Property and equipment, at cost less accumulated depreciation
|
343,572
|
|
|
298,414
|
|
||
Tax receivable
|
20,462
|
|
|
24,176
|
|
||
Goodwill
|
830,956
|
|
|
833,512
|
|
||
Value of business acquired
|
32,165
|
|
|
41,154
|
|
||
Other intangible assets, net
|
240,310
|
|
|
277,163
|
|
||
Other assets
|
359,684
|
|
|
469,005
|
|
||
Assets held in separate accounts
|
1,692,287
|
|
|
1,798,104
|
|
||
Total assets
|
$
|
29,709,128
|
|
|
$
|
30,036,402
|
|
Liabilities
|
|
|
|
||||
Future policy benefits and expenses
|
$
|
10,112,878
|
|
|
$
|
9,466,694
|
|
Unearned premiums
|
6,626,525
|
|
|
6,423,720
|
|
||
Claims and benefits payable
|
3,301,257
|
|
|
3,896,719
|
|
||
Commissions payable
|
386,243
|
|
|
393,260
|
|
||
Reinsurance balances payable
|
95,292
|
|
|
132,728
|
|
||
Funds held under reinsurance
|
111,721
|
|
|
94,417
|
|
||
Deferred gain on disposal of businesses
|
232,135
|
|
|
92,327
|
|
||
Accounts payable and other liabilities
|
1,985,670
|
|
|
2,049,810
|
|
||
Debt
|
1,067,020
|
|
|
1,164,656
|
|
||
Liabilities related to separate accounts
|
1,692,287
|
|
|
1,798,104
|
|
||
Total liabilities
|
25,611,028
|
|
|
25,512,435
|
|
||
Commitments and contingencies (Note 25)
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
||||
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 55,941,480 and 65,850,386 shares
outstanding at December 31, 2016 and December 31, 2015, respectively |
1,504
|
|
|
1,497
|
|
||
Additional paid-in capital
|
3,175,867
|
|
|
3,148,409
|
|
||
Retained earnings
|
5,296,678
|
|
|
4,856,674
|
|
||
Accumulated other comprehensive income
|
94,602
|
|
|
118,549
|
|
||
Treasury stock, at cost; 94,041,583 and 83,523,031 shares at December 31, 2016 and December 31, 2015,
respectively |
(4,470,551
|
)
|
|
(3,601,162
|
)
|
||
Total stockholders’ equity
|
4,098,100
|
|
|
4,523,967
|
|
||
Total liabilities and stockholders’ equity
|
$
|
29,709,128
|
|
|
$
|
30,036,402
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in thousands except number of shares and per share
amounts)
|
||||||||||
Revenues
|
|
|
|
|
|
||||||
Net earned premiums
|
$
|
5,007,364
|
|
|
$
|
8,350,997
|
|
|
$
|
8,632,142
|
|
Fees and other income
|
1,422,464
|
|
|
1,303,466
|
|
|
1,033,805
|
|
|||
Net investment income
|
515,678
|
|
|
626,217
|
|
|
656,429
|
|
|||
Net realized gains on investments, excluding other-than-temporary
impairment losses
|
169,057
|
|
|
36,850
|
|
|
60,813
|
|
|||
Total other-than-temporary impairment losses
|
(6,537
|
)
|
|
(7,212
|
)
|
|
(69
|
)
|
|||
Portion of net loss recognized in other comprehensive income,
before taxes
|
(337
|
)
|
|
2,188
|
|
|
39
|
|
|||
Net other-than-temporary impairment losses recognized in earnings
|
(6,874
|
)
|
|
(5,024
|
)
|
|
(30
|
)
|
|||
Amortization of deferred gains and gains on disposal of businesses
|
394,513
|
|
|
12,988
|
|
|
(1,506
|
)
|
|||
Gain on pension plan curtailment
|
29,578
|
|
|
—
|
|
|
—
|
|
|||
Total revenues
|
7,531,780
|
|
|
10,325,494
|
|
|
10,381,653
|
|
|||
Benefits, losses and expenses
|
|
|
|
|
|
||||||
Policyholder benefits
|
1,808,472
|
|
|
4,742,535
|
|
|
4,405,333
|
|
|||
Amortization of deferred acquisition costs and value of business
acquired
|
1,351,314
|
|
|
1,402,573
|
|
|
1,485,558
|
|
|||
Underwriting, general and administrative expenses
|
3,442,756
|
|
|
3,924,089
|
|
|
3,688,230
|
|
|||
Interest expense
|
57,619
|
|
|
55,116
|
|
|
58,395
|
|
|||
Loss on extinguishment of debt
|
23,031
|
|
|
—
|
|
|
—
|
|
|||
Total benefits, losses and expenses
|
6,683,192
|
|
|
10,124,313
|
|
|
9,637,516
|
|
|||
Income before provision for income taxes
|
848,588
|
|
|
201,181
|
|
|
744,137
|
|
|||
Provision for income taxes
|
283,238
|
|
|
59,626
|
|
|
273,230
|
|
|||
Net income
|
$
|
565,350
|
|
|
$
|
141,555
|
|
|
$
|
470,907
|
|
Earnings Per Share
|
|
|
|
|
|
||||||
Basic
|
$
|
9.23
|
|
|
$
|
2.08
|
|
|
$
|
6.52
|
|
Diluted
|
$
|
9.13
|
|
|
$
|
2.05
|
|
|
$
|
6.44
|
|
Dividends per share
|
$
|
2.03
|
|
|
$
|
1.37
|
|
|
$
|
1.06
|
|
Share Data
|
|
|
|
|
|
||||||
Weighted average shares outstanding used in basic per share calculations
|
61,261,288
|
|
|
68,163,825
|
|
|
72,181,447
|
|
|||
Plus: Dilutive securities
|
673,486
|
|
|
853,384
|
|
|
970,563
|
|
|||
Weighted average shares used in diluted per share calculations
|
61,934,774
|
|
|
69,017,209
|
|
|
73,152,010
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
|
|
(in thousands)
|
|
|
||||||
Net income
|
$
|
565,350
|
|
|
$
|
141,555
|
|
|
$
|
470,907
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
||||||
Change in unrealized gains on securities, net of taxes of $18,945,
$158,653, and $(135,743), respectively
|
(36,176
|
)
|
|
(297,639
|
)
|
|
267,011
|
|
|||
Change in other-than-temporary impairment gains, net of taxes of
$971, $2,240, and $(90), respectively
|
(1,802
|
)
|
|
(4,160
|
)
|
|
167
|
|
|||
Change in foreign currency translation, net of taxes of $(429), $5,100, and $2,745, respectively
|
(51,372
|
)
|
|
(143,023
|
)
|
|
(88,944
|
)
|
|||
Amortization of pension and postretirement unrecognized net periodic
benefit cost and change in funded status, net of taxes of $(35,224),
$(4,091), and $26,534, respectively
|
65,403
|
|
|
7,604
|
|
|
(49,297
|
)
|
|||
Total other comprehensive (loss) income
|
(23,947
|
)
|
|
(437,218
|
)
|
|
128,937
|
|
|||
Total comprehensive income (loss)
|
$
|
541,403
|
|
|
$
|
(295,663
|
)
|
|
$
|
599,844
|
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Treasury
Stock
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Balance, January 1, 2014
|
$
|
1,482
|
|
|
$
|
3,087,533
|
|
|
$
|
4,415,875
|
|
|
$
|
426,830
|
|
|
$
|
(3,098,241
|
)
|
|
$
|
4,833,479
|
|
Stock plan exercises
|
8
|
|
|
(20,513
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,505
|
)
|
||||||
Stock plan compensation expense
|
—
|
|
|
49,354
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,354
|
|
||||||
Change in tax benefit from share-based payment
arrangements
|
—
|
|
|
14,900
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,900
|
|
||||||
Dividends
|
—
|
|
|
—
|
|
|
(77,495
|
)
|
|
—
|
|
|
—
|
|
|
(77,495
|
)
|
||||||
Acquisition of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(218,270
|
)
|
|
(218,270
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
470,907
|
|
|
—
|
|
|
—
|
|
|
470,907
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
128,937
|
|
|
—
|
|
|
128,937
|
|
||||||
Balance, December 31,2014
|
$
|
1,490
|
|
|
$
|
3,131,274
|
|
|
$
|
4,809,287
|
|
|
$
|
555,767
|
|
|
$
|
(3,316,511
|
)
|
|
$
|
5,181,307
|
|
Stock plan exercises
|
7
|
|
|
(17,571
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,564
|
)
|
||||||
Stock plan compensation expense
|
—
|
|
|
38,773
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,773
|
|
||||||
Change in tax benefit from share-based payment
arrangements
|
—
|
|
|
(4,067
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,067
|
)
|
||||||
Dividends
|
—
|
|
|
—
|
|
|
(94,168
|
)
|
|
—
|
|
|
—
|
|
|
(94,168
|
)
|
||||||
Acquisition of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(284,651
|
)
|
|
(284,651
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
141,555
|
|
|
—
|
|
|
—
|
|
|
141,555
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(437,218
|
)
|
|
—
|
|
|
(437,218
|
)
|
||||||
Balance, December 31, 2015
|
$
|
1,497
|
|
|
$
|
3,148,409
|
|
|
$
|
4,856,674
|
|
|
$
|
118,549
|
|
|
$
|
(3,601,162
|
)
|
|
$
|
4,523,967
|
|
Stock plan exercises
|
7
|
|
|
(19,766
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,759
|
)
|
||||||
Stock plan compensation expense
|
—
|
|
|
41,614
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,614
|
|
||||||
Change in tax benefit from share-based payment
arrangements
|
—
|
|
|
5,610
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,610
|
|
||||||
Dividends
|
—
|
|
|
—
|
|
|
(125,346
|
)
|
|
—
|
|
|
—
|
|
|
(125,346
|
)
|
||||||
Acquisition of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(869,389
|
)
|
|
(869,389
|
)
|
||||||
Net income
|
—
|
|
|
—
|
|
|
565,350
|
|
|
—
|
|
|
—
|
|
|
565,350
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,947
|
)
|
|
—
|
|
|
(23,947
|
)
|
||||||
Balance, December 31, 2016
|
$
|
1,504
|
|
|
$
|
3,175,867
|
|
|
$
|
5,296,678
|
|
|
$
|
94,602
|
|
|
$
|
(4,470,551
|
)
|
|
$
|
4,098,100
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in thousands)
|
||||||||||
Operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
565,350
|
|
|
$
|
141,555
|
|
|
$
|
470,907
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Noncash revenues, expenses, gains and losses included in income:
|
|
|
|
|
|
||||||
Amortization of deferred gain and (gains) losses on disposal of businesses
|
(394,513
|
)
|
|
(12,988
|
)
|
|
1,506
|
|
|||
Depreciation and amortization
|
125,143
|
|
|
137,105
|
|
|
132,217
|
|
|||
Net realized gains on investments (1)
|
(162,183
|
)
|
|
(31,826
|
)
|
|
(60,783
|
)
|
|||
Loss on extinguishment of debt
|
23,031
|
|
|
—
|
|
|
—
|
|
|||
Stock based compensation expense
|
41,614
|
|
|
38,773
|
|
|
49,354
|
|
|||
Income from real estate joint ventures
|
(7,254
|
)
|
|
(23,550
|
)
|
|
(17,826
|
)
|
|||
Gain on pension plan curtailment
|
(29,578
|
)
|
|
—
|
|
|
—
|
|
|||
Other intangible asset impairment
|
16,122
|
|
|
1,010
|
|
|
5,019
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Change in premium stabilization program receivables (2)
|
487,585
|
|
|
(136,630
|
)
|
|
(381,158
|
)
|
|||
Change in insurance policy reserves and expenses (3)
|
197,348
|
|
|
454,196
|
|
|
828,591
|
|
|||
Change in premiums and accounts receivables
|
(212,493
|
)
|
|
185,606
|
|
|
(292,241
|
)
|
|||
Change in reinsurance recoverable
|
(240,651
|
)
|
|
(155,703
|
)
|
|
(471,232
|
)
|
|||
Change in reinsurance balance payable
|
(41,118
|
)
|
|
(13,647
|
)
|
|
49,940
|
|
|||
Change in funds withheld under reinsurance
|
15,952
|
|
|
26,479
|
|
|
57,095
|
|
|||
Change in deferred acquisitions costs and value of business acquired
|
(229,559
|
)
|
|
(234,676
|
)
|
|
(227,628
|
)
|
|||
Change in inventory associated with mobile business
|
4,579
|
|
|
(27,269
|
)
|
|
(85,742
|
)
|
|||
Change in accounts payable and other liabilities
|
(36,869
|
)
|
|
(140,337
|
)
|
|
266,648
|
|
|||
Change in income taxes
|
32,232
|
|
|
(19,816
|
)
|
|
63,777
|
|
|||
Other
|
(20,212
|
)
|
|
66,290
|
|
|
5,372
|
|
|||
Net cash provided by operating activities
|
$
|
134,526
|
|
|
$
|
254,572
|
|
|
$
|
393,816
|
|
Investing activities
|
|
||||||||||
Sales of:
|
|
|
|
|
|
||||||
Fixed maturity securities available for sale
|
2,963,511
|
|
|
2,380,789
|
|
|
1,887,983
|
|
|||
Equity securities available for sale
|
223,260
|
|
|
181,918
|
|
|
109,233
|
|
|||
Other invested assets
|
82,152
|
|
|
68,465
|
|
|
74,257
|
|
|||
Subsidiary, net of cash transferred (4)
|
873,920
|
|
|
49,906
|
|
|
—
|
|
|||
Commercial mortgage loan on real estate (5)
|
268,833
|
|
|
—
|
|
|
—
|
|
|||
Maturities, calls, prepayments, and scheduled redemption of:
|
|
|
|
|
|
||||||
Fixed maturity securities available for sale
|
739,003
|
|
|
665,554
|
|
|
791,528
|
|
|||
Commercial mortgage loans on real estate
|
120,715
|
|
|
253,371
|
|
|
165,452
|
|
|||
Purchases of:
|
|
|
|
|
|
||||||
Fixed maturity securities available for sale
|
(4,259,972
|
)
|
|
(2,747,392
|
)
|
|
(2,472,494
|
)
|
|||
Equity securities available for sale
|
(200,513
|
)
|
|
(185,025
|
)
|
|
(132,748
|
)
|
|||
Commercial mortgage loans on real estate
|
(116,623
|
)
|
|
(149,003
|
)
|
|
(156,390
|
)
|
|||
Other invested assets
|
(98,499
|
)
|
|
(29,305
|
)
|
|
(41,653
|
)
|
|||
Property and equipment and other
|
(85,233
|
)
|
|
(114,896
|
)
|
|
(83,603
|
)
|
|||
Subsidiary, net of cash transferred (4)
|
(63,243
|
)
|
|
(16,844
|
)
|
|
(149,194
|
)
|
|||
Change in short-term investments
|
273,157
|
|
|
(196,747
|
)
|
|
93,571
|
|
|||
Other
|
5,153
|
|
|
103,502
|
|
|
(22,053
|
)
|
|||
Net cash provided by investing activities
|
725,621
|
|
|
264,293
|
|
|
63,889
|
|
|||
Financing activities
|
|
|
|
|
|
||||||
Issuance of debt
|
249,625
|
|
|
—
|
|
|
—
|
|
|||
Repayment of debt, including extinguishment
|
(373,031
|
)
|
|
—
|
|
|
(467,330
|
)
|
|||
Acquisition of common stock
|
(863,051
|
)
|
|
(292,906
|
)
|
|
(215,183
|
)
|
|||
Dividends paid
|
(125,346
|
)
|
|
(94,168
|
)
|
|
(77,495
|
)
|
|||
Other
|
5,610
|
|
|
(100,053
|
)
|
|
(16,191
|
)
|
|||
Net cash used in financing activities
|
(1,106,193
|
)
|
|
(487,127
|
)
|
|
(776,199
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
(16,146
|
)
|
|
(56,231
|
)
|
|
(28,126
|
)
|
|||
Cash included in business classified as held for sale
|
5,858
|
|
|
(5,858
|
)
|
|
(51,908
|
)
|
|||
Change in cash and cash equivalents
|
(256,334
|
)
|
|
(30,351
|
)
|
|
(398,528
|
)
|
|||
Cash and cash equivalents at beginning of period
|
1,288,305
|
|
|
1,318,656
|
|
|
1,717,184
|
|
|||
Cash and cash equivalents at end of period
|
$
|
1,031,971
|
|
|
$
|
1,288,305
|
|
|
$
|
1,318,656
|
|
Supplemental information:
|
|
|
|
|
|
||||||
Income taxes paid
|
$
|
226,078
|
|
|
$
|
80,140
|
|
|
$
|
247,771
|
|
Interest on debt paid
|
$
|
56,161
|
|
|
$
|
54,813
|
|
|
$
|
68,875
|
|
(1)
|
Includes items related to the sale of Assurant's Employee Benefits segment.
|
(2)
|
Represents items related to estimated receivables introduced by the Affordable Care Act. See the Affordable Care Act Risk Mitigation Programs section of Note 2 for additional information.
|
(3)
|
Includes charges and reserve activity associated with the premium deficiency reserve established for Assurant Health in 2015.
|
(4)
|
2016 includes the sale of Assurant's Employee Benefits segment mainly through reinsurance transactions and supplemental and small group self-funded business; the acquisition of American Title and the purchase of renewal rights to the National Flood Insurance block of business of Nationwide Mutual Insurance Company and other immaterial subsidiaries. 2015 includes the sale of American Reliable Insurance Co. and certain assets related to our vehicle title administration services business and supplemental and small group self-funded businesses; the acquisition of Coast to Coast Services, Inc. and Rent Collect Global. 2014 includes the acquisition of StreetLinks, LLC, eMortgage Logic, LLC, CWI Group and other immaterial subsidiaries.
|
(5)
|
For further information see Note 6.
|
|
Year Ended December 31, 2016
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Total Corporate & Other
|
|
|
|
|
||||||||||||||||||||
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Corporate & Other
|
|
Health
|
|
Total
|
|
Employee Benefits (1)
|
|
Consolidated
|
||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net earned premiums
|
$
|
1,829,112
|
|
|
$
|
2,901,480
|
|
|
$
|
61,691
|
|
|
$
|
—
|
|
|
$
|
37,110
|
|
|
$
|
37,110
|
|
|
$
|
177,971
|
|
|
$
|
5,007,364
|
|
Fees and other income
|
459,689
|
|
|
804,687
|
|
|
109,588
|
|
|
24,418
|
|
|
19,838
|
|
|
44,256
|
|
|
4,244
|
|
|
1,422,464
|
|
||||||||
Net investment income
|
72,713
|
|
|
113,085
|
|
|
259,755
|
|
|
43,996
|
|
|
8,789
|
|
|
52,785
|
|
|
17,340
|
|
|
515,678
|
|
||||||||
Net realized gains on investments (2)
|
—
|
|
|
—
|
|
|
—
|
|
|
162,183
|
|
|
—
|
|
|
162,183
|
|
|
—
|
|
|
162,183
|
|
||||||||
Amortization of deferred gains and gains on disposal of businesses (3)
|
—
|
|
|
—
|
|
|
—
|
|
|
394,513
|
|
|
—
|
|
|
394,513
|
|
|
—
|
|
|
394,513
|
|
||||||||
Gain on pension plan curtailment
|
—
|
|
|
—
|
|
|
—
|
|
|
29,578
|
|
|
—
|
|
|
29,578
|
|
|
—
|
|
|
29,578
|
|
||||||||
Total revenues
|
2,361,514
|
|
|
3,819,252
|
|
|
431,034
|
|
|
654,688
|
|
|
65,737
|
|
|
720,425
|
|
|
199,555
|
|
|
7,531,780
|
|
||||||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Policyholder benefits (4)
|
828,565
|
|
|
663,781
|
|
|
250,370
|
|
|
—
|
|
|
(52,725
|
)
|
|
(52,725
|
)
|
|
118,481
|
|
|
1,808,472
|
|
||||||||
Amortization of deferred acquisition costs and value of business acquired
|
238,178
|
|
|
1,045,948
|
|
|
61,330
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,858
|
|
|
1,351,314
|
|
||||||||
Underwriting, general and administrative expenses (5)
|
1,013,733
|
|
|
1,901,754
|
|
|
55,507
|
|
|
244,496
|
|
|
165,759
|
|
|
410,255
|
|
|
61,507
|
|
|
3,442,756
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
57,619
|
|
|
—
|
|
|
57,619
|
|
|
—
|
|
|
57,619
|
|
||||||||
Loss on extinguishment of debt
|
—
|
|
|
—
|
|
|
—
|
|
|
23,031
|
|
|
—
|
|
|
23,031
|
|
|
—
|
|
|
23,031
|
|
||||||||
Total benefits, losses and expenses
|
2,080,476
|
|
|
3,611,483
|
|
|
367,207
|
|
|
325,146
|
|
|
113,034
|
|
|
438,180
|
|
|
185,846
|
|
|
6,683,192
|
|
||||||||
Segment income (loss) before provision (benefit) for income taxes
|
281,038
|
|
|
207,769
|
|
|
63,827
|
|
|
329,542
|
|
|
(47,297
|
)
|
|
282,245
|
|
|
13,709
|
|
|
848,588
|
|
||||||||
Provision (benefit) for income taxes
|
92,372
|
|
|
53,344
|
|
|
21,523
|
|
|
116,983
|
|
|
(6,256
|
)
|
|
110,727
|
|
|
5,272
|
|
|
283,238
|
|
||||||||
Segment income (loss) after taxes
|
$
|
188,666
|
|
|
$
|
154,425
|
|
|
$
|
42,304
|
|
|
$
|
212,559
|
|
|
$
|
(41,041
|
)
|
|
$
|
171,518
|
|
|
$
|
8,437
|
|
|
|
||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
565,350
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Segment assets:
|
$
|
3,836,544
|
|
|
$
|
8,746,994
|
|
|
$
|
6,421,095
|
|
|
$
|
10,457,807
|
|
|
$
|
246,688
|
|
|
$
|
10,704,495
|
|
|
$
|
—
|
|
|
$
|
29,709,128
|
|
(1)
|
Assurant Employee Benefits amounts primarily represent the results of operations prior to the sale on March 1, 2016.
|
(2)
|
Includes
$146,727
related to assets transferred to Sun Life as part of the Assurant Employee Benefits sale on March 1, 2016.
|
(3)
|
Includes
$382,555
related to the additional deferred gains and gains related to the Assurant Employee Benefits sale on March 1, 2016.
|
(4)
|
The presentation of Assurant Health policyholder benefits includes the impact of the total current period net utilization of the premium deficiency reserve of
$37,659
for claim costs and claim adjustment expenses included in policyholder benefits, as well as maintenance costs, which are included within underwriting, general and administrative expenses (the net year to date utilization includes a partially offsetting additional premium deficiency charge). In addition, there was favorable claims development experienced through December 31, 2016, in excess of actual benefit expense which is contributing to the credit balance.
|
(5)
|
Corporate & Other includes
$16,672
intangible asset impairment charge related to trade names that will no longer be used or defended by the Company, and an
$23,000
expense related to a post-close adjustment pertaining to an estimated indemnification that will be due on a previous disposition.
|
|
Year Ended December 31, 2015
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Total Corporate & Other
|
|
|
|
|
||||||||||||||||||||
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Corporate & Other
|
|
Health
|
|
Total
|
|
Employee Benefits
|
|
Consolidated
|
||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net earned premiums
|
$
|
2,044,701
|
|
|
$
|
2,955,443
|
|
|
$
|
60,403
|
|
|
$
|
—
|
|
|
$
|
2,223,696
|
|
|
$
|
2,223,696
|
|
|
$
|
1,066,754
|
|
|
$
|
8,350,997
|
|
Fees and other income
|
405,545
|
|
|
678,573
|
|
|
107,038
|
|
|
32,682
|
|
|
54,622
|
|
|
87,304
|
|
|
25,006
|
|
|
1,303,466
|
|
||||||||
Net investment income
|
92,859
|
|
|
126,855
|
|
|
249,828
|
|
|
21,190
|
|
|
24,487
|
|
|
45,677
|
|
|
110,998
|
|
|
626,217
|
|
||||||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
31,826
|
|
|
—
|
|
|
31,826
|
|
|
—
|
|
|
31,826
|
|
||||||||
Amortization of deferred gains and gains on disposal of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
12,988
|
|
|
—
|
|
|
12,988
|
|
|
—
|
|
|
12,988
|
|
||||||||
Total revenues
|
2,543,105
|
|
|
3,760,871
|
|
|
417,269
|
|
|
98,686
|
|
|
2,302,805
|
|
|
2,401,491
|
|
|
1,202,758
|
|
|
10,325,494
|
|
||||||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Policyholder benefits
|
788,549
|
|
|
679,750
|
|
|
239,653
|
|
|
3,150
|
|
|
2,301,241
|
|
|
2,304,391
|
|
|
730,192
|
|
|
4,742,535
|
|
||||||||
Amortization of deferred acquisition costs and value of business acquired
|
280,492
|
|
|
1,021,984
|
|
|
56,567
|
|
|
—
|
|
|
10,694
|
|
|
10,694
|
|
|
32,836
|
|
|
1,402,573
|
|
||||||||
Underwriting, general and administrative expenses
|
1,010,445
|
|
|
1,847,776
|
|
|
55,936
|
|
|
127,285
|
|
|
516,726
|
|
|
644,011
|
|
|
365,921
|
|
|
3,924,089
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
55,116
|
|
|
—
|
|
|
55,116
|
|
|
—
|
|
|
55,116
|
|
||||||||
Total benefits, losses and expenses
|
2,079,486
|
|
|
3,549,510
|
|
|
352,156
|
|
|
185,551
|
|
|
2,828,661
|
|
|
3,014,212
|
|
|
1,128,949
|
|
|
10,124,313
|
|
||||||||
Segment income (loss) before provision (benefit) for income taxes
|
463,619
|
|
|
211,361
|
|
|
65,113
|
|
|
(86,865
|
)
|
|
(525,856
|
)
|
|
(612,721
|
)
|
|
73,809
|
|
|
201,181
|
|
||||||||
Provision (benefit) for income taxes
|
155,914
|
|
|
58,357
|
|
|
20,934
|
|
|
(44,117
|
)
|
|
(157,949
|
)
|
|
(202,066
|
)
|
|
26,487
|
|
|
59,626
|
|
||||||||
Segment income (loss) after taxes
|
$
|
307,705
|
|
|
$
|
153,004
|
|
|
$
|
44,179
|
|
|
$
|
(42,748
|
)
|
|
$
|
(367,907
|
)
|
|
$
|
(410,655
|
)
|
|
$
|
47,322
|
|
|
|
||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
141,555
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Segment assets:
|
$
|
3,648,738
|
|
|
$
|
8,307,338
|
|
|
$
|
6,049,146
|
|
|
$
|
8,403,340
|
|
|
$
|
1,437,032
|
|
|
$
|
9,840,372
|
|
|
$
|
2,190,808
|
|
|
$
|
30,036,402
|
|
|
Year Ended December 31, 2014
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Total Corporate & Other
|
|
|
|
|
||||||||||||||||||||
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Corporate & Other
|
|
Health
|
|
Total
|
|
Employee Benefits
|
|
Consolidated
|
||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net earned premiums
|
$
|
2,506,097
|
|
|
$
|
3,067,775
|
|
|
$
|
61,093
|
|
|
$
|
—
|
|
|
$
|
1,945,452
|
|
|
$
|
1,945,452
|
|
|
$
|
1,051,725
|
|
|
$
|
8,632,142
|
|
Fees and other income
|
301,048
|
|
|
560,806
|
|
|
107,046
|
|
|
685
|
|
|
40,016
|
|
|
40,701
|
|
|
24,204
|
|
|
1,033,805
|
|
||||||||
Net investment income
|
101,908
|
|
|
128,978
|
|
|
253,662
|
|
|
19,320
|
|
|
35,369
|
|
|
54,689
|
|
|
117,192
|
|
|
656,429
|
|
||||||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
60,783
|
|
|
—
|
|
|
60,783
|
|
|
—
|
|
|
60,783
|
|
||||||||
Amortization of deferred gains and gains on disposal of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,506
|
)
|
|
—
|
|
|
(1,506
|
)
|
|
—
|
|
|
(1,506
|
)
|
||||||||
Total revenues
|
2,909,053
|
|
|
3,757,559
|
|
|
421,801
|
|
|
79,282
|
|
|
2,020,837
|
|
|
2,100,119
|
|
|
1,193,121
|
|
|
10,381,653
|
|
||||||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Policyholder benefits
|
1,085,339
|
|
|
777,568
|
|
|
249,901
|
|
|
—
|
|
|
1,575,633
|
|
|
1,575,633
|
|
|
716,892
|
|
|
4,405,333
|
|
||||||||
Amortization of deferred acquisition costs and value of business acquired
|
343,314
|
|
|
1,055,590
|
|
|
51,299
|
|
|
—
|
|
|
4,570
|
|
|
4,570
|
|
|
30,785
|
|
|
1,485,558
|
|
||||||||
Underwriting, general and administrative expenses
|
961,972
|
|
|
1,659,953
|
|
|
63,216
|
|
|
143,078
|
|
|
491,248
|
|
|
634,326
|
|
|
368,763
|
|
|
3,688,230
|
|
||||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
58,395
|
|
|
—
|
|
|
58,395
|
|
|
—
|
|
|
58,395
|
|
||||||||
Total benefits, losses and expenses
|
2,390,625
|
|
|
3,493,111
|
|
|
364,416
|
|
|
201,473
|
|
|
2,071,451
|
|
|
2,272,924
|
|
|
1,116,440
|
|
|
9,637,516
|
|
||||||||
Segment income (loss) before provision (benefit) for income taxes
|
518,428
|
|
|
264,448
|
|
|
57,385
|
|
|
(122,191
|
)
|
|
(50,614
|
)
|
|
(172,805
|
)
|
|
76,681
|
|
|
744,137
|
|
||||||||
Provision (benefit) for income taxes
|
176,671
|
|
|
87,610
|
|
|
15,275
|
|
|
(47,460
|
)
|
|
13,134
|
|
|
(34,326
|
)
|
|
28,000
|
|
|
273,230
|
|
||||||||
Segment income (loss) after taxes
|
$
|
341,757
|
|
|
$
|
176,838
|
|
|
$
|
42,110
|
|
|
$
|
(74,731
|
)
|
|
$
|
(63,748
|
)
|
|
$
|
(138,479
|
)
|
|
$
|
48,681
|
|
|
|
||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
470,907
|
|
Location
|
Revenues
|
|
Long-lived
assets
|
||||
2016
|
|
|
|
||||
United States
|
$
|
6,239,656
|
|
|
$
|
336,793
|
|
Foreign countries
|
1,292,124
|
|
|
6,779
|
|
||
Total
|
$
|
7,531,780
|
|
|
$
|
343,572
|
|
2015
|
|
|
|
||||
United States
|
$
|
8,917,732
|
|
|
$
|
293,915
|
|
Foreign countries
|
1,407,762
|
|
|
4,499
|
|
||
Total
|
$
|
10,325,494
|
|
|
$
|
298,414
|
|
2014
|
|
|
|
||||
United States
|
$
|
8,874,820
|
|
|
$
|
272,555
|
|
Foreign countries
|
1,506,833
|
|
|
5,090
|
|
||
Total
|
$
|
10,381,653
|
|
|
$
|
277,645
|
|
|
2016
|
|
2015
|
|
2014
|
||||||
Global Housing:
|
|
|
|
|
|
||||||
Lender-placed insurance
|
$
|
1,317,190
|
|
|
$
|
1,561,396
|
|
|
$
|
1,849,149
|
|
Multi-family housing
|
320,941
|
|
|
282,680
|
|
|
232,252
|
|
|||
Mortgage solutions
|
329,265
|
|
|
289,575
|
|
|
189,396
|
|
|||
Manufactured housing and other
|
321,405
|
|
|
316,595
|
|
|
536,348
|
|
|||
Total
|
$
|
2,288,801
|
|
|
$
|
2,450,246
|
|
|
$
|
2,807,145
|
|
Global Lifestyle:
|
|
|
|
|
|
||||||
Global connected living (mobile and service contracts)
|
$
|
2,570,143
|
|
|
$
|
2,550,990
|
|
|
$
|
2,553,848
|
|
Global vehicle protection services
|
715,794
|
|
|
608,372
|
|
|
503,308
|
|
|||
Global credit and other
|
420,230
|
|
|
474,654
|
|
|
571,425
|
|
|||
Total
|
$
|
3,706,167
|
|
|
$
|
3,634,016
|
|
|
$
|
3,628,581
|
|
|
|
|
|
|
|
||||||
Global Preneed:
|
$
|
171,279
|
|
|
$
|
167,441
|
|
|
$
|
168,139
|
|
|
|
|
|
|
|
||||||
Health (1):
|
$
|
56,948
|
|
|
$
|
2,278,318
|
|
|
$
|
1,985,468
|
|
|
|
|
|
|
|
||||||
Employee Benefits (2):
|
$
|
182,215
|
|
|
$
|
1,091,760
|
|
|
$
|
1,075,929
|
|
(1)
|
Includes individual and small employer group products.
|
(2)
|
Includes group disability, group dental, group life and group supplemental and vision products.
|
|
Severance and
retention
|
|
Long-lived asset impairments and contract and lease terminations
|
|
Other transaction costs
|
|
Total
|
||||||||
Balance at January 1, 2015
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Charges
|
51,706
|
|
|
22,337
|
|
|
11,586
|
|
|
85,629
|
|
||||
Non-cash adjustment
|
—
|
|
|
(21,247
|
)
|
|
(2,947
|
)
|
|
(24,194
|
)
|
||||
Cash payments
|
(15,141
|
)
|
|
(320
|
)
|
|
(8,146
|
)
|
|
(23,607
|
)
|
||||
Balance at December 31, 2015
|
$
|
36,565
|
|
|
$
|
770
|
|
|
$
|
493
|
|
|
$
|
37,828
|
|
Charges
|
26,359
|
|
|
5,077
|
|
|
(33
|
)
|
|
31,403
|
|
||||
Cash payments
|
(44,602
|
)
|
|
(5,324
|
)
|
|
(460
|
)
|
|
(50,386
|
)
|
||||
Balance at December 31, 2016
|
$
|
18,322
|
|
|
$
|
523
|
|
|
$
|
—
|
|
|
$
|
18,845
|
|
|
|
|
|
|
|
|
|
||||||||
Amount expected to be incurred, including charges
to date
|
$
|
81,420
|
|
|
$
|
27,414
|
|
|
$
|
11,553
|
|
|
$
|
120,387
|
|
|
|
|
|
|
|
|
|
||||||||
Premium deficiency charges
|
|
|
|
|
|
|
$
|
182,627
|
|
||||||
Total amount expected to be incurred, including
charges to date
|
|
|
|
|
|
|
$
|
303,014
|
|
Total expected gains, after adjustment and contingent consideration
|
$
|
656,497
|
|
|
|
|
|
||
Transaction closing gains on March 1, 2016:
|
|
|
||
Gain on sale of entities, net of transaction costs
|
41,098
|
|
|
|
Novations, resulting in recognized gains
|
60,913
|
|
(b)
|
|
Loss on retroactive reinsurance component, before realized gains
|
(128,661
|
)
|
(c)
|
|
Net loss prior to realized gains on transferred securities supporting retroactive component
|
(26,650
|
)
|
(a)
|
|
Realized gains on transferred securities supporting retroactive component
|
146,727
|
|
(c)
|
|
Net gains realized as of March 1, 2016
|
120,077
|
|
|
|
|
|
|
||
Realized gains related to contingent consideration
|
16,000
|
|
(d)
|
|
|
|
|
||
Deferred gains as of March 1, 2016, after adjustment
|
520,420
|
|
|
|
Amortization of deferred gains for the three months ended March 31, 2016
|
44,593
|
|
(d)
|
|
Amortization of deferred gains for the three months ended June 30, 2016
|
122,835
|
|
(d)
|
|
Amortization of deferred gains for the three months ended September 30, 2016
|
116,856
|
|
(d)
|
|
Amortization of deferred gains for the three months ended December 31, 2016
|
82,271
|
|
(d)
|
|
Subtotal amortization of deferred gains for the year ended December 31, 2016
|
366,555
|
|
(d)
|
|
Deferred gains as of December 31, 2016
|
153,865
|
|
(e)
|
|
Total net gains realized for 2016
|
$
|
502,632
|
|
|
(a)
|
Amount classified within underwriting, general and administrative expenses within the consolidated statements of operations.
|
(b)
|
Novations of certain insurance policies directly to Sun Life allowed for immediate gain recognition.
|
(c)
|
Reinsurance of existing claims liabilities requires retroactive accounting necessitating losses to be recognized immediately. However, upon transfer of the associated assets supporting the liabilities, the Company recognized realized gains which more than offset the retroactive losses. The Company was required to classify the realized gains as part of net realized gains on investments, within the consolidated statements of operations.
|
(d)
|
Amount classified as amortization of deferred gains and gains on disposal of businesses within the consolidated statements of operations.
|
(e)
|
Amount classified as a component of the deferred gains on disposal of businesses within the consolidated balance sheets.
|
|
December 31, 2016
|
||||||||||||||||||
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
OTTI in
AOCI (a)
|
||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government
agencies and authorities
|
$
|
172,782
|
|
|
$
|
3,389
|
|
|
$
|
(1,285
|
)
|
|
$
|
174,886
|
|
|
$
|
—
|
|
States, municipalities and political
subdivisions
|
446,882
|
|
|
29,639
|
|
|
(446
|
)
|
|
476,075
|
|
|
—
|
|
|||||
Foreign governments
|
508,871
|
|
|
60,462
|
|
|
(865
|
)
|
|
568,468
|
|
|
—
|
|
|||||
Asset-backed
|
2,658
|
|
|
1,157
|
|
|
(138
|
)
|
|
3,677
|
|
|
1,117
|
|
|||||
Commercial mortgage-backed
|
39,267
|
|
|
142
|
|
|
(993
|
)
|
|
38,416
|
|
|
—
|
|
|||||
Residential mortgage-backed
|
1,071,179
|
|
|
38,130
|
|
|
(7,997
|
)
|
|
1,101,312
|
|
|
12,758
|
|
|||||
U.S. corporate
|
5,022,769
|
|
|
454,115
|
|
|
(15,634
|
)
|
|
5,461,250
|
|
|
15,616
|
|
|||||
Foreign corporate
|
1,606,429
|
|
|
147,174
|
|
|
(5,542
|
)
|
|
1,748,061
|
|
|
2,248
|
|
|||||
Total fixed maturity securities
|
$
|
8,870,837
|
|
|
$
|
734,208
|
|
|
$
|
(32,900
|
)
|
|
$
|
9,572,145
|
|
|
$
|
31,739
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
$
|
11,911
|
|
|
$
|
8,890
|
|
|
$
|
(7
|
)
|
|
$
|
20,794
|
|
|
$
|
—
|
|
Non-redeemable preferred stocks
|
369,920
|
|
|
31,767
|
|
|
(1,120
|
)
|
|
400,567
|
|
|
—
|
|
|||||
Total equity securities
|
$
|
381,831
|
|
|
$
|
40,657
|
|
|
$
|
(1,127
|
)
|
|
$
|
421,361
|
|
|
$
|
—
|
|
|
December 31, 2015
|
||||||||||||||||||
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
OTTI in
AOCI (a)
|
||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government
agencies and authorities
|
$
|
150,681
|
|
|
$
|
3,891
|
|
|
$
|
(537
|
)
|
|
$
|
154,035
|
|
|
$
|
—
|
|
States, municipalities and political
subdivisions
|
647,335
|
|
|
48,389
|
|
|
(94
|
)
|
|
695,630
|
|
|
—
|
|
|||||
Foreign governments
|
497,785
|
|
|
65,188
|
|
|
(723
|
)
|
|
562,250
|
|
|
—
|
|
|||||
Asset-backed
|
3,499
|
|
|
1,367
|
|
|
(204
|
)
|
|
4,662
|
|
|
1,285
|
|
|||||
Commercial mortgage-backed
|
22,169
|
|
|
352
|
|
|
—
|
|
|
22,521
|
|
|
—
|
|
|||||
Residential mortgage-backed
|
953,247
|
|
|
48,676
|
|
|
(3,409
|
)
|
|
998,514
|
|
|
15,343
|
|
|||||
U.S. corporate
|
5,429,783
|
|
|
513,254
|
|
|
(73,344
|
)
|
|
5,869,693
|
|
|
15,705
|
|
|||||
Foreign corporate
|
1,766,296
|
|
|
164,295
|
|
|
(22,568
|
)
|
|
1,908,023
|
|
|
2,180
|
|
|||||
Total fixed maturity securities
|
$
|
9,470,795
|
|
|
$
|
845,412
|
|
|
$
|
(100,879
|
)
|
|
$
|
10,215,328
|
|
|
$
|
34,513
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
$
|
13,048
|
|
|
$
|
6,623
|
|
|
$
|
(7
|
)
|
|
$
|
19,664
|
|
|
$
|
—
|
|
Non-redeemable preferred stocks
|
437,515
|
|
|
45,495
|
|
|
(2,617
|
)
|
|
480,393
|
|
|
—
|
|
|||||
Total equity securities
|
$
|
450,563
|
|
|
$
|
52,118
|
|
|
$
|
(2,624
|
)
|
|
$
|
500,057
|
|
|
$
|
—
|
|
(a)
|
Represents the amount of OTTI recognized in accumulated other comprehensive income ("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.
|
|
Cost or
Amortized
Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
428,433
|
|
|
$
|
433,479
|
|
Due after one year through five years
|
1,761,804
|
|
|
1,823,218
|
|
||
Due after five years through ten years
|
2,001,060
|
|
|
2,067,674
|
|
||
Due after ten years
|
3,566,436
|
|
|
4,104,369
|
|
||
Total
|
7,757,733
|
|
|
8,428,740
|
|
||
Asset-backed
|
2,658
|
|
|
3,677
|
|
||
Commercial mortgage-backed
|
39,267
|
|
|
38,416
|
|
||
Residential mortgage-backed
|
1,071,179
|
|
|
1,101,312
|
|
||
Total
|
$
|
8,870,837
|
|
|
$
|
9,572,145
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Fixed maturity securities
|
$
|
419,347
|
|
|
$
|
486,165
|
|
|
$
|
522,309
|
|
Equity securities
|
25,161
|
|
|
29,957
|
|
|
28,014
|
|
|||
Commercial mortgage loans on real estate
|
41,669
|
|
|
72,658
|
|
|
73,959
|
|
|||
Policy loans
|
2,577
|
|
|
2,478
|
|
|
2,939
|
|
|||
Short-term investments
|
5,508
|
|
|
2,033
|
|
|
1,950
|
|
|||
Other investments
|
21,671
|
|
|
37,759
|
|
|
34,527
|
|
|||
Cash and cash equivalents
|
17,462
|
|
|
18,416
|
|
|
18,556
|
|
|||
Total investment income
|
533,395
|
|
|
649,466
|
|
|
682,254
|
|
|||
Investment expenses
|
(17,717
|
)
|
|
(23,249
|
)
|
|
(25,825
|
)
|
|||
Net investment income
|
$
|
515,678
|
|
|
$
|
626,217
|
|
|
$
|
656,429
|
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Proceeds from sales
|
$
|
4,610,681
|
|
|
$
|
2,568,166
|
|
|
$
|
1,995,368
|
|
Gross realized gains (a)
|
209,475
|
|
|
65,097
|
|
|
69,184
|
|
|||
Gross realized losses (b)
|
65,206
|
|
|
31,657
|
|
|
10,681
|
|
(a)
|
Twelve months ended December 31, 2016 gross realized gains includes
$150,701
related to the sale of Assurant Employee Benefits as described in Note 5.
|
(b)
|
Twelve months ended December 31, 2016 gross realized losses includes
$16,427
related to the sale of Assurant Employee Benefits as described in Note 5.
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Net realized gains (losses) related to sales and other:
|
|
|
|
|
|
||||||
Fixed maturity securities
|
$
|
128,899
|
|
|
$
|
13,322
|
|
|
$
|
54,200
|
|
Equity securities
|
17,262
|
|
|
19,016
|
|
|
6,190
|
|
|||
Commercial mortgage loans on real estate
|
21,823
|
|
|
817
|
|
|
532
|
|
|||
Other investments
|
1,073
|
|
|
3,695
|
|
|
(109
|
)
|
|||
Total net realized gains related to sales and other (a)
|
169,057
|
|
|
36,850
|
|
|
60,813
|
|
|||
Net realized losses related to other-than-temporary impairments:
|
|
|
|
|
|
||||||
Fixed maturity securities
|
(700
|
)
|
|
(5,024
|
)
|
|
(30
|
)
|
|||
Other investments
|
(6,174
|
)
|
|
—
|
|
|
—
|
|
|||
Total net realized losses related to other-than-temporary impairments
|
(6,874
|
)
|
|
(5,024
|
)
|
|
(30
|
)
|
|||
Total net realized gains
|
$
|
162,183
|
|
|
$
|
31,826
|
|
|
$
|
60,783
|
|
(a)
|
Twelve months ended December 31, 2016 net gains includes
$146,727
related to the sale of Assurant Employee Benefits as described in Note 5.
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Balance, beginning of year
|
$
|
32,377
|
|
|
$
|
35,424
|
|
|
$
|
45,278
|
|
Additions for credit loss impairments recognized in the current period
on securities previously impaired
|
554
|
|
|
—
|
|
|
30
|
|
|||
Additions for credit loss impairments recognized in the current period
on securities not previously impaired
|
—
|
|
|
2,621
|
|
|
—
|
|
|||
Reductions for increases in cash flows expected to be collected that are
recognized over the remaining life of the security
|
(3,590
|
)
|
|
(2,398
|
)
|
|
(5,248
|
)
|
|||
Reductions for credit loss impairments previously recognized on
securities which matured, paid down, prepaid or were sold during the
period
|
(4,397
|
)
|
|
(3,270
|
)
|
|
(4,636
|
)
|
|||
Balance, end of year
|
$
|
24,944
|
|
|
$
|
32,377
|
|
|
$
|
35,424
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and government
agencies and authorities
|
$
|
91,038
|
|
|
$
|
(1,285
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
91,038
|
|
|
$
|
(1,285
|
)
|
States, municipalities and political
subdivisions
|
16,914
|
|
|
(446
|
)
|
|
—
|
|
|
—
|
|
|
16,914
|
|
|
(446
|
)
|
||||||
Foreign governments
|
98,759
|
|
|
(847
|
)
|
|
6,844
|
|
|
(18
|
)
|
|
105,603
|
|
|
(865
|
)
|
||||||
Asset-backed
|
—
|
|
|
—
|
|
|
979
|
|
|
(138
|
)
|
|
979
|
|
|
(138
|
)
|
||||||
Commercial mortgage-backed
|
33,206
|
|
|
(993
|
)
|
|
—
|
|
|
—
|
|
|
33,206
|
|
|
(993
|
)
|
||||||
Residential mortgage-backed
|
347,522
|
|
|
(7,892
|
)
|
|
2,196
|
|
|
(105
|
)
|
|
349,718
|
|
|
(7,997
|
)
|
||||||
U.S. corporate
|
940,434
|
|
|
(13,125
|
)
|
|
34,071
|
|
|
(2,509
|
)
|
|
974,505
|
|
|
(15,634
|
)
|
||||||
Foreign corporate
|
227,313
|
|
|
(4,584
|
)
|
|
7,573
|
|
|
(958
|
)
|
|
234,886
|
|
|
(5,542
|
)
|
||||||
Total fixed maturity securities
|
$
|
1,755,186
|
|
|
$
|
(29,172
|
)
|
|
$
|
51,663
|
|
|
$
|
(3,728
|
)
|
|
$
|
1,806,849
|
|
|
$
|
(32,900
|
)
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common stock
|
$
|
673
|
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
673
|
|
|
$
|
(7
|
)
|
Non-redeemable preferred stocks
|
64,419
|
|
|
(1,083
|
)
|
|
1,940
|
|
|
(37
|
)
|
|
66,359
|
|
|
(1,120
|
)
|
||||||
Total equity securities
|
$
|
65,092
|
|
|
$
|
(1,090
|
)
|
|
$
|
1,940
|
|
|
$
|
(37
|
)
|
|
$
|
67,032
|
|
|
$
|
(1,127
|
)
|
|
December 31, 2015
|
||||||||||||||||||||||
|
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
|
$
|
90,008
|
|
|
$
|
(465
|
)
|
|
$
|
5,564
|
|
|
$
|
(72
|
)
|
|
$
|
95,572
|
|
|
$
|
(537
|
)
|
States, municipalities and political
subdivisions
|
6,881
|
|
|
(94
|
)
|
|
—
|
|
|
—
|
|
|
6,881
|
|
|
(94
|
)
|
||||||
Foreign governments
|
24,071
|
|
|
(347
|
)
|
|
22,239
|
|
|
(376
|
)
|
|
46,310
|
|
|
(723
|
)
|
||||||
Asset-backed
|
—
|
|
|
—
|
|
|
1,136
|
|
|
(204
|
)
|
|
1,136
|
|
|
(204
|
)
|
||||||
Residential mortgage-backed
|
260,620
|
|
|
(3,179
|
)
|
|
11,147
|
|
|
(230
|
)
|
|
271,767
|
|
|
(3,409
|
)
|
||||||
U.S. corporate
|
1,287,545
|
|
|
(65,631
|
)
|
|
38,224
|
|
|
(7,713
|
)
|
|
1,325,769
|
|
|
(73,344
|
)
|
||||||
Foreign corporate
|
348,912
|
|
|
(19,616
|
)
|
|
15,805
|
|
|
(2,952
|
)
|
|
364,717
|
|
|
(22,568
|
)
|
||||||
Total fixed maturity securities
|
$
|
2,018,037
|
|
|
$
|
(89,332
|
)
|
|
$
|
94,115
|
|
|
$
|
(11,547
|
)
|
|
$
|
2,112,152
|
|
|
$
|
(100,879
|
)
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common stock
|
$
|
623
|
|
|
$
|
(7
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
623
|
|
|
$
|
(7
|
)
|
Non-redeemable preferred stocks
|
63,665
|
|
|
(1,632
|
)
|
|
13,806
|
|
|
(985
|
)
|
|
77,471
|
|
|
(2,617
|
)
|
||||||
Total equity securities
|
$
|
64,288
|
|
|
$
|
(1,639
|
)
|
|
$
|
13,806
|
|
|
$
|
(985
|
)
|
|
$
|
78,094
|
|
|
$
|
(2,624
|
)
|
|
Cost or
Amortized
Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
103,273
|
|
|
$
|
103,200
|
|
Due after one year through five years
|
421,271
|
|
|
418,100
|
|
||
Due after five years through ten years
|
479,658
|
|
|
471,605
|
|
||
Due after ten years
|
442,516
|
|
|
430,041
|
|
||
Total
|
1,446,718
|
|
|
1,422,946
|
|
||
Asset-backed
|
1,117
|
|
|
979
|
|
||
Commercial mortgage-backed
|
34,199
|
|
|
33,206
|
|
||
Residential mortgage-backed
|
357,715
|
|
|
349,718
|
|
||
Total
|
$
|
1,839,749
|
|
|
$
|
1,806,849
|
|
|
December 31, 2016
|
||||||||
Loan-to-Value
|
Carrying
Value
|
|
% of Gross
Mortgage
Loans
|
|
Debt-Service
Coverage Ratio
|
||||
70% and less
|
$
|
595,527
|
|
|
95.1
|
%
|
|
1.92
|
|
71 – 80%
|
9,868
|
|
|
1.6
|
%
|
|
1.15
|
|
|
81 – 95%
|
16,126
|
|
|
2.5
|
%
|
|
1.27
|
|
|
Greater than 95%
|
4,816
|
|
|
0.8
|
%
|
|
3.86
|
|
|
Gross commercial mortgage loans
|
626,337
|
|
|
100.0
|
%
|
|
1.91
|
|
|
Less valuation allowance
|
(2,304
|
)
|
|
|
|
|
|||
Net commercial mortgage loans
|
$
|
624,033
|
|
|
|
|
|
|
December 31, 2015
|
||||||||
Loan-to-Value
|
Carrying
Value
|
|
% of Gross
Mortgage
Loans
|
|
Debt-Service
Coverage Ratio
|
||||
70% and less
|
$
|
1,101,572
|
|
|
95.5
|
%
|
|
2.01
|
|
71 – 80%
|
39,080
|
|
|
3.4
|
%
|
|
1.19
|
|
|
81 – 95%
|
8,370
|
|
|
0.7
|
%
|
|
1.05
|
|
|
Greater than 95%
|
4,816
|
|
|
0.4
|
%
|
|
3.52
|
|
|
Gross commercial mortgage loans
|
1,153,838
|
|
|
100.0
|
%
|
|
1.98
|
|
|
Less valuation allowance
|
(2,582
|
)
|
|
|
|
|
|||
Net commercial mortgage loans
|
$
|
1,151,256
|
|
|
|
|
|
•
|
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, either directly or indirectly, for substantially the full term of the asset. Level 2 inputs include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset. The observable inputs are used in valuation models to calculate the fair value for the asset.
|
•
|
Level 3 inputs are unobservable but are significant to the fair value measurement for the asset, and include situations where there is little, if any, market activity for the asset. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset.
|
|
December 31, 2016
|
|
||||||||||||||
Financial Assets
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government agencies and
authorities
|
$
|
174,886
|
|
|
$
|
—
|
|
|
$
|
174,886
|
|
|
$
|
—
|
|
|
State, municipalities and political subdivisions
|
476,075
|
|
|
—
|
|
|
476,075
|
|
|
—
|
|
|
||||
Foreign governments
|
568,468
|
|
|
1,012
|
|
|
567,456
|
|
|
—
|
|
|
||||
Asset-backed
|
3,677
|
|
|
—
|
|
|
3,677
|
|
|
—
|
|
|
||||
Commercial mortgage-backed
|
38,416
|
|
|
—
|
|
|
10,654
|
|
|
27,762
|
|
|
||||
Residential mortgage-backed
|
1,101,312
|
|
|
—
|
|
|
1,101,312
|
|
|
—
|
|
|
||||
U.S. corporate
|
5,461,250
|
|
|
—
|
|
|
5,416,699
|
|
|
44,551
|
|
|
||||
Foreign corporate
|
1,748,061
|
|
|
—
|
|
|
1,714,750
|
|
|
33,311
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Common stocks
|
20,794
|
|
|
20,111
|
|
|
683
|
|
|
—
|
|
|
||||
Non-redeemable preferred stocks
|
400,567
|
|
|
—
|
|
|
398,379
|
|
|
2,188
|
|
|
||||
Short-term investments
|
227,740
|
|
|
52,696
|
|
b
|
175,044
|
|
c
|
—
|
|
|
||||
Other investments
|
265,108
|
|
|
64,945
|
|
a
|
196,697
|
|
c
|
3,466
|
|
d
|
||||
Cash equivalents
|
646,541
|
|
|
644,541
|
|
b
|
2,000
|
|
c
|
—
|
|
|
||||
Other assets
|
648
|
|
|
—
|
|
|
298
|
|
e
|
350
|
|
e
|
||||
Assets held in separate accounts
|
1,650,153
|
|
|
1,472,890
|
|
a
|
177,263
|
|
c
|
—
|
|
|
||||
Total financial assets
|
$
|
12,783,696
|
|
|
$
|
2,256,195
|
|
|
$
|
10,415,873
|
|
|
$
|
111,628
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
$
|
89,321
|
|
|
$
|
64,945
|
|
a
|
$
|
925
|
|
e
|
$
|
23,451
|
|
e
|
Liabilities related to separate accounts
|
1,650,153
|
|
|
1,472,890
|
|
a
|
177,263
|
|
c
|
—
|
|
|
||||
Total financial liabilities
|
$
|
1,739,474
|
|
|
$
|
1,537,835
|
|
|
$
|
178,188
|
|
|
$
|
23,451
|
|
|
|
December 31, 2015
|
|
||||||||||||||
Financial Assets
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government agencies and
authorities
|
$
|
154,035
|
|
|
$
|
—
|
|
|
$
|
154,035
|
|
|
$
|
—
|
|
|
State, municipalities and political subdivisions
|
695,630
|
|
|
—
|
|
|
695,630
|
|
|
—
|
|
|
||||
Foreign governments
|
562,250
|
|
|
944
|
|
|
561,306
|
|
|
—
|
|
|
||||
Asset-backed
|
4,662
|
|
|
—
|
|
|
4,662
|
|
|
—
|
|
|
||||
Commercial mortgage-backed
|
22,521
|
|
|
—
|
|
|
22,317
|
|
|
204
|
|
|
||||
Residential mortgage-backed
|
998,514
|
|
|
—
|
|
|
998,514
|
|
|
—
|
|
|
||||
U.S. corporate
|
5,869,693
|
|
|
—
|
|
|
5,835,189
|
|
|
34,504
|
|
|
||||
Foreign corporate
|
1,908,023
|
|
|
—
|
|
|
1,879,381
|
|
|
28,642
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Common stocks
|
19,664
|
|
|
18,981
|
|
|
683
|
|
|
—
|
|
|
||||
Non-redeemable preferred stocks
|
480,393
|
|
|
—
|
|
|
478,143
|
|
|
2,250
|
|
|
||||
Short-term investments
|
508,950
|
|
|
453,335
|
|
b
|
55,615
|
|
c
|
—
|
|
|
||||
Other investments
|
253,708
|
|
|
62,076
|
|
a
|
189,407
|
|
c
|
2,225
|
|
d
|
||||
Cash equivalents
|
908,936
|
|
|
907,248
|
|
b
|
1,688
|
|
c
|
—
|
|
|
||||
Other assets
|
1,320
|
|
|
—
|
|
|
886
|
|
e
|
434
|
|
e
|
||||
Assets held in separate accounts
|
1,750,556
|
|
|
1,570,000
|
|
a
|
180,556
|
|
c
|
—
|
|
|
||||
Total financial assets
|
$
|
14,138,855
|
|
|
$
|
3,012,584
|
|
|
$
|
11,058,012
|
|
|
$
|
68,259
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other liabilities
|
$
|
89,765
|
|
|
$
|
62,076
|
|
a
|
$
|
6
|
|
e
|
$
|
27,683
|
|
e
|
Liabilities related to separate accounts
|
1,750,556
|
|
|
1,570,000
|
|
a
|
180,556
|
|
c
|
—
|
|
|
||||
Total financial liabilities
|
$
|
1,840,321
|
|
|
$
|
1,632,076
|
|
|
$
|
180,562
|
|
|
$
|
27,683
|
|
|
a.
|
Mainly includes mutual funds.
|
b.
|
Mainly includes money market funds.
|
c.
|
Mainly includes fixed maturity securities.
|
d.
|
Mainly includes fixed maturity securities and other derivatives.
|
e.
|
Mainly includes other derivatives.
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||||||||||||||
|
|
Balance,
beginning
of period
|
|
Total
(losses) gains
(realized/
unrealized)
included in
earnings (1)
|
|
Net
unrealized
losses
included in
other
comprehensive
income (2)
|
|
Purchases
|
|
Sales
|
|
Transfers
in (3)
|
|
Transfers
out (3)
|
|
Balance,
end of
period
|
||||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed Maturity Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
States, municipalities and political
subdivisions
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,600
|
|
|
$
|
(3,600
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commercial mortgage-backed
|
|
204
|
|
|
(2,071
|
)
|
|
(992
|
)
|
|
30,822
|
|
|
(201
|
)
|
|
—
|
|
|
—
|
|
|
27,762
|
|
||||||||
U.S. corporate
|
|
34,504
|
|
|
469
|
|
|
(99
|
)
|
|
28,949
|
|
|
(5,134
|
)
|
|
16,311
|
|
|
(30,449
|
)
|
|
44,551
|
|
||||||||
Foreign corporate
|
|
28,642
|
|
|
90
|
|
|
(415
|
)
|
|
1,685
|
|
|
(1,510
|
)
|
|
4,819
|
|
|
—
|
|
|
33,311
|
|
||||||||
Equity Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-redeemable preferred stocks
|
|
2,250
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,188
|
|
||||||||
Other investments
|
|
2,225
|
|
|
(981
|
)
|
|
(45
|
)
|
|
2,356
|
|
|
(89
|
)
|
|
—
|
|
|
—
|
|
|
3,466
|
|
||||||||
Other assets
|
|
434
|
|
|
(84
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
350
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other liabilities
|
|
(27,683
|
)
|
|
4,919
|
|
|
—
|
|
|
(687
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23,451
|
)
|
||||||||
Total level 3 assets and liabilities
|
|
$
|
40,576
|
|
|
$
|
2,342
|
|
|
$
|
(1,613
|
)
|
|
$
|
66,725
|
|
|
$
|
(10,534
|
)
|
|
$
|
21,130
|
|
|
$
|
(30,449
|
)
|
|
$
|
88,177
|
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||||||||||||||
|
|
Balance,
beginning
of period
|
|
Total gains
(losses)
(realized/
unrealized)
included in
earnings (1)
|
|
Net
unrealized
(losses) gains
included in
other
comprehensive
income (2)
|
|
Purchases
|
|
Sales
|
|
Transfers
in (3)
|
|
Transfers
out (3)
|
|
Balance,
end of
period
|
||||||||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Fixed Maturity Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial mortgage-backed
|
|
$
|
403
|
|
|
$
|
—
|
|
|
$
|
(11
|
)
|
|
$
|
—
|
|
|
$
|
(188
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
204
|
|
Residential mortgage-backed
|
|
4,645
|
|
|
1
|
|
|
(104
|
)
|
|
9,721
|
|
|
—
|
|
|
—
|
|
|
(14,263
|
)
|
|
—
|
|
||||||||
U.S. corporate
|
|
100,133
|
|
|
(115
|
)
|
|
(992
|
)
|
|
6,523
|
|
|
(5,417
|
)
|
|
2,130
|
|
|
(67,758
|
)
|
|
34,504
|
|
||||||||
Foreign corporate
|
|
4,142
|
|
|
706
|
|
|
(2,628
|
)
|
|
—
|
|
|
(1,750
|
)
|
|
28,172
|
|
|
—
|
|
|
28,642
|
|
||||||||
Equity Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Non-redeemable preferred stocks
|
|
2,000
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,250
|
|
||||||||
Other investments
|
|
2,121
|
|
|
34
|
|
|
(42
|
)
|
|
—
|
|
|
(124
|
)
|
|
236
|
|
|
—
|
|
|
2,225
|
|
||||||||
Other assets
|
|
807
|
|
|
(373
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
434
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Other liabilities
|
|
(25,233
|
)
|
|
(2,450
|
)
|
|
—
|
|
|
77
|
|
|
(77
|
)
|
|
—
|
|
|
—
|
|
|
(27,683
|
)
|
||||||||
Total level 3 assets and liabilities
|
|
$
|
89,018
|
|
|
$
|
(2,197
|
)
|
|
$
|
(3,527
|
)
|
|
$
|
16,321
|
|
|
$
|
(7,556
|
)
|
|
$
|
30,538
|
|
|
$
|
(82,021
|
)
|
|
$
|
40,576
|
|
(1)
|
Included as part of net realized gains on investments in the consolidated statement of operations.
|
(2)
|
Included as part of change in unrealized gains on securities in the consolidated statement of comprehensive income.
|
(3)
|
Transfers are primarily attributable to changes in the availability of observable market information and re-evaluation of the observability of pricing inputs.
|
•
|
There are few recent transactions,
|
•
|
Little information is released publicly,
|
•
|
The available prices vary significantly over time or among market participants,
|
•
|
The prices are stale (i.e., not current), and
|
•
|
The magnitude of the bid-ask spread.
|
•
|
Cash and cash equivalents
|
•
|
Fixed maturity securities
|
•
|
Equity securities
|
•
|
Short-term investments
|
•
|
Other investments
|
•
|
Other assets
|
•
|
Assets held in separate accounts
|
•
|
Other liabilities
|
•
|
Liabilities related to separate accounts
|
|
December 31, 2016
|
||||||||||||||||||
|
|
|
Fair Value
|
||||||||||||||||
|
Carrying Value
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial mortgage loans on real estate
|
$
|
624,033
|
|
|
$
|
634,872
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
634,872
|
|
Policy loans
|
38,533
|
|
|
38,533
|
|
|
38,533
|
|
|
—
|
|
|
—
|
|
|||||
Other investments
|
36,272
|
|
|
36,272
|
|
|
—
|
|
|
—
|
|
|
36,272
|
|
|||||
Total financial assets
|
$
|
698,838
|
|
|
$
|
709,677
|
|
|
$
|
38,533
|
|
|
$
|
—
|
|
|
$
|
671,144
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy reserves under investment products
(Individual and group annuities, subject to discretionary
withdrawal) (1)
|
$
|
650,989
|
|
|
$
|
680,409
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
680,409
|
|
Funds withheld under reinsurance
|
111,721
|
|
|
111,721
|
|
|
111,721
|
|
|
—
|
|
|
—
|
|
|||||
Debt
|
1,067,020
|
|
|
1,159,744
|
|
|
—
|
|
|
1,159,744
|
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
1,829,730
|
|
|
$
|
1,951,874
|
|
|
$
|
111,721
|
|
|
$
|
1,159,744
|
|
|
$
|
680,409
|
|
|
December 31, 2015
|
||||||||||||||||||
|
|
|
Fair Value
|
||||||||||||||||
|
Carrying Value
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial mortgage loans on real estate
|
$
|
1,151,256
|
|
|
$
|
1,201,806
|
|
|
—
|
|
|
—
|
|
|
$
|
1,201,806
|
|
||
Policy loans
|
43,858
|
|
|
43,858
|
|
|
43,858
|
|
|
—
|
|
|
—
|
|
|||||
Other investments
|
27,534
|
|
|
27,534
|
|
|
—
|
|
|
—
|
|
|
27,534
|
|
|||||
Total financial assets
|
$
|
1,222,648
|
|
|
$
|
1,273,198
|
|
|
$
|
43,858
|
|
|
—
|
|
|
$
|
1,229,340
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy reserves under investment products
(Individual and group annuities, subject to discretionary withdrawal) (1)
|
$
|
666,068
|
|
|
$
|
676,586
|
|
|
—
|
|
|
—
|
|
|
$
|
676,586
|
|
||
Funds withheld under reinsurance
|
94,417
|
|
|
94,417
|
|
|
94,417
|
|
|
—
|
|
|
—
|
|
|||||
Debt
|
1,164,656
|
|
|
1,250,602
|
|
|
—
|
|
|
1,250,602
|
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
1,925,141
|
|
|
$
|
2,021,605
|
|
|
$
|
94,417
|
|
|
$
|
1,250,602
|
|
|
$
|
676,586
|
|
(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.
|
|
As of December 31,
|
||||||
|
2016
|
|
2015
|
||||
Insurance premiums receivable
|
$
|
1,101,987
|
|
|
$
|
1,092,136
|
|
Other receivables
|
145,542
|
|
|
196,277
|
|
||
Allowance for uncollectible amounts
|
(29,560
|
)
|
|
(27,696
|
)
|
||
Total
|
$
|
1,217,969
|
|
|
$
|
1,260,717
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Pre-tax income:
|
|
|
|
|
|
||||||
Domestic
|
$
|
778,989
|
|
|
$
|
126,797
|
|
|
$
|
632,738
|
|
Foreign
|
69,599
|
|
|
74,384
|
|
|
111,399
|
|
|||
Total pre-tax income
|
$
|
848,588
|
|
|
$
|
201,181
|
|
|
$
|
744,137
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Current expense:
|
|
|
|
|
|
||||||
Federal and state
|
$
|
240,125
|
|
|
$
|
40,643
|
|
|
$
|
162,483
|
|
Foreign
|
18,105
|
|
|
22,851
|
|
|
46,593
|
|
|||
Total current expense
|
258,230
|
|
|
63,494
|
|
|
209,076
|
|
|||
Deferred expense (benefit):
|
|
|
|
|
|
||||||
Federal and state
|
19,558
|
|
|
173
|
|
|
72,645
|
|
|||
Foreign
|
5,450
|
|
|
(4,041
|
)
|
|
(8,491
|
)
|
|||
Total deferred expense (benefit)
|
25,008
|
|
|
(3,868
|
)
|
|
64,154
|
|
|||
Total income tax expense
|
$
|
283,238
|
|
|
$
|
59,626
|
|
|
$
|
273,230
|
|
|
December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Federal income tax rate:
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
Reconciling items:
|
|
|
|
|
|
|||
Non-taxable investment income
|
(1.3
|
)
|
|
(6.8
|
)
|
|
(1.9
|
)
|
Foreign earnings (a)
|
(1.9
|
)
|
|
(5.2
|
)
|
|
(2.2
|
)
|
Non deductible compensation
|
(0.1
|
)
|
|
9.1
|
|
|
3.8
|
|
Non deductible health insurer fee
|
1.8
|
|
|
6.9
|
|
|
1.1
|
|
Sale of subsidiary
|
—
|
|
|
(8.0
|
)
|
|
—
|
|
Other
|
(0.1
|
)
|
|
(1.4
|
)
|
|
0.9
|
|
Effective income tax rate:
|
33.4
|
%
|
|
29.6
|
%
|
|
36.7
|
%
|
(a)
|
Results for all years primarily include tax benefit associated with the earnings of certain non-U.S. subsidiaries that are deemed reinvested indefinitely and the realization of foreign tax credits for certain other subsidiaries. In addition, 2016 reflects a benefit of
2.2%
and 2015 reflects a
6.5%
benefit related to a Latin American reorganization, while 2014 reflects a benefit of
2.6%
related to the conversion of Canadian branch operations of certain U.S. companies to foreign corporate entities.
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Balance at beginning of year
|
$
|
(37,010
|
)
|
|
$
|
(6,262
|
)
|
|
$
|
(10,322
|
)
|
Additions based on tax positions related to the current year
|
(1,021
|
)
|
|
(30,712
|
)
|
|
(2,940
|
)
|
|||
Reductions based on tax positions related to the current year
|
—
|
|
|
102
|
|
|
581
|
|
|||
Additions for tax positions of prior years
|
(1,401
|
)
|
|
(2,128
|
)
|
|
(1,037
|
)
|
|||
Reductions for tax positions of prior years
|
3,786
|
|
|
431
|
|
|
2,495
|
|
|||
Lapses
|
1,486
|
|
|
1,559
|
|
|
—
|
|
|||
Settlements
|
—
|
|
|
—
|
|
|
4,961
|
|
|||
Balance at end of year
|
$
|
(34,160
|
)
|
|
$
|
(37,010
|
)
|
|
$
|
(6,262
|
)
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Deferred Tax Assets
|
|
|
|
||||
Policyholder and separate account reserves
|
$
|
571,675
|
|
|
$
|
568,053
|
|
Accrued liabilities
|
39,297
|
|
|
32,257
|
|
||
Investments, net
|
102,568
|
|
|
140,785
|
|
||
Net operating loss carryforwards
|
31,735
|
|
|
40,479
|
|
||
Deferred gain on disposal of businesses
|
81,247
|
|
|
32,362
|
|
||
Compensation related
|
37,841
|
|
|
28,289
|
|
||
Employee and post-retirement benefits
|
58,480
|
|
|
115,904
|
|
||
Unearned fee income
|
48,444
|
|
|
50,931
|
|
||
Other
|
78,595
|
|
|
48,548
|
|
||
Total deferred tax asset
|
1,049,882
|
|
|
1,057,608
|
|
||
Less valuation allowance
|
(12,529
|
)
|
|
(13,218
|
)
|
||
Deferred tax assets, net of valuation allowance
|
1,037,353
|
|
|
1,044,390
|
|
||
Deferred Tax Liabilities
|
|
|
|
||||
Deferred acquisition costs
|
(984,324
|
)
|
|
(931,630
|
)
|
||
Net unrealized appreciation on securities
|
(243,810
|
)
|
|
(262,075
|
)
|
||
Total deferred tax liability
|
(1,228,134
|
)
|
|
(1,193,705
|
)
|
||
Net deferred income tax liability
|
$
|
(190,781
|
)
|
|
$
|
(149,315
|
)
|
Expiration Year
|
Amount
|
||
2017 - 2021
|
$
|
28,116
|
|
2022 - 2026
|
7,450
|
|
|
2027 - 2031
|
1,199
|
|
|
2032 - 2036
|
9,407
|
|
|
Unlimited
|
77,132
|
|
|
|
$
|
123,304
|
|
|
December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Beginning balance
|
$
|
3,150,934
|
|
|
$
|
2,957,740
|
|
|
$
|
3,128,931
|
|
Costs deferred
|
1,458,673
|
|
|
1,587,453
|
|
|
1,306,390
|
|
|||
Amortization
|
(1,342,213
|
)
|
|
(1,394,259
|
)
|
|
(1,477,581
|
)
|
|||
Ending balance
|
$
|
3,267,394
|
|
|
$
|
3,150,934
|
|
|
$
|
2,957,740
|
|
|
As of December 31,
|
||||||
|
2016
|
|
2015
|
||||
Land
|
$
|
14,884
|
|
|
$
|
14,884
|
|
Buildings and improvements
|
269,320
|
|
|
262,769
|
|
||
Furniture, fixtures and equipment
|
393,652
|
|
|
478,717
|
|
||
Total
|
677,856
|
|
|
756,370
|
|
||
Less accumulated depreciation
|
(334,284
|
)
|
|
(457,956
|
)
|
||
Total
|
$
|
343,572
|
|
|
$
|
298,414
|
|
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Consolidated
|
||||||||
Balance at December 31, 2014 (2)
|
$
|
301,586
|
|
|
$
|
539,653
|
|
|
$
|
—
|
|
|
$
|
841,239
|
|
Acquisitions
|
5,365
|
|
|
2,520
|
|
|
—
|
|
|
7,885
|
|
||||
Dispositions
|
(2,532
|
)
|
|
—
|
|
|
—
|
|
|
(2,532
|
)
|
||||
Foreign currency translation and other
|
—
|
|
|
(13,080
|
)
|
|
—
|
|
|
(13,080
|
)
|
||||
Balance at December 31, 2015 (2)
|
304,419
|
|
|
529,093
|
|
|
—
|
|
|
833,512
|
|
||||
Acquisitions
|
16,511
|
|
|
4,053
|
|
|
—
|
|
|
20,564
|
|
||||
Foreign currency translation and other
|
—
|
|
|
(23,120
|
)
|
|
—
|
|
|
(23,120
|
)
|
||||
Reallocation among new reporting units (1)
|
—
|
|
|
(137,707
|
)
|
|
137,707
|
|
|
—
|
|
||||
Balance at December 31, 2016 (2)
|
$
|
320,930
|
|
|
$
|
372,319
|
|
|
$
|
137,707
|
|
|
$
|
830,956
|
|
(1)
|
Effective December 31, 2016, the Company changed its segment reporting structure. See Note 3 for more information. Global Preneed was previously reported together with Global Lifestyle. As a consequence of these segment changes, our reporting units also changed. Goodwill has been reallocated between the Global Lifestyle and Global Preneed reporting units using the relative fair value allocation approach.
|
(2)
|
Includes
$1,260,939
of accumulated impairment losses.
|
|
For the Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Beginning balance
|
$
|
41,154
|
|
|
$
|
45,462
|
|
|
$
|
53,549
|
|
Additions
|
—
|
|
|
4,134
|
|
|
—
|
|
|||
Amortization, net of interest accrued
|
(9,154
|
)
|
|
(8,314
|
)
|
|
(7,978
|
)
|
|||
Foreign currency translation and other
|
165
|
|
|
(128
|
)
|
|
(109
|
)
|
|||
Ending balance
|
$
|
32,165
|
|
|
$
|
41,154
|
|
|
$
|
45,462
|
|
Year
|
Amount
|
||
2017
|
$
|
7,854
|
|
2018
|
7,037
|
|
|
2019
|
6,654
|
|
|
2020
|
6,291
|
|
|
2021
|
779
|
|
|
Thereafter
|
3,550
|
|
|
Total
|
$
|
32,165
|
|
|
As of December 31,
|
||||||||||||||||||||||
|
2016
|
|
2015
|
||||||||||||||||||||
|
Carrying
Value
|
|
Accumulated
Amortization
|
|
Net Other
Intangible
Assets
|
|
Carrying
Value
|
|
Accumulated
Amortization
|
|
Net Other
Intangible
Assets
|
||||||||||||
Contract based intangibles
|
$
|
16,480
|
|
|
$
|
(8,160
|
)
|
|
$
|
8,320
|
|
|
$
|
47,134
|
|
|
$
|
(30,820
|
)
|
|
$
|
16,314
|
|
Customer related intangibles
|
469,192
|
|
|
(257,088
|
)
|
|
212,104
|
|
|
438,737
|
|
|
(212,542
|
)
|
|
226,195
|
|
||||||
Marketing related intangibles (1)
|
16,011
|
|
|
(15,126
|
)
|
|
885
|
|
|
41,386
|
|
|
(20,977
|
)
|
|
20,409
|
|
||||||
Technology based intangibles
|
36,684
|
|
|
(17,683
|
)
|
|
19,001
|
|
|
25,235
|
|
|
(10,990
|
)
|
|
14,245
|
|
||||||
Total
|
$
|
538,367
|
|
|
$
|
(298,057
|
)
|
|
$
|
240,310
|
|
|
$
|
552,492
|
|
|
$
|
(275,329
|
)
|
|
$
|
277,163
|
|
(1)
|
In 2016, the net amount was reduced for a
$16,672
intangible asset impairment charge related to trade names that will no longer be used or defended by the Company.
|
Year
|
Amount
|
||
2017
|
$
|
63,258
|
|
2018
|
52,688
|
|
|
2019
|
34,784
|
|
|
2020
|
28,492
|
|
|
2021
|
20,762
|
|
|
Thereafter
|
40,326
|
|
|
Total other intangible assets with finite lives
|
$
|
240,310
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Claims and benefits payable, at beginning of year
|
$
|
3,896,719
|
|
|
$
|
3,698,606
|
|
|
$
|
3,389,371
|
|
Less: Reinsurance ceded and other
|
(1,496,515
|
)
|
|
(1,254,443
|
)
|
|
(1,140,385
|
)
|
|||
Net claims and benefits payable, at beginning of year
|
2,400,204
|
|
|
2,444,163
|
|
|
2,248,986
|
|
|||
Incurred losses and loss adjustment expenses related to:
|
|
|
|
|
|
||||||
Current year
|
2,028,936
|
|
|
4,973,396
|
|
|
4,746,889
|
|
|||
Prior year's interest
|
9,876
|
|
|
59,794
|
|
|
61,884
|
|
|||
Prior year(s)
|
(196,230
|
)
|
|
(150,879
|
)
|
|
(127,462
|
)
|
|||
Total incurred losses and loss adjustment expenses
|
1,842,582
|
|
|
4,882,311
|
|
|
4,681,311
|
|
|||
Paid losses and loss adjustment expenses related to:
|
|
|
|
|
|
||||||
Current year
|
1,595,747
|
|
|
3,845,957
|
|
|
3,550,574
|
|
|||
Prior year(s)
|
2,063,989
|
|
|
1,080,313
|
|
|
935,560
|
|
|||
Total paid losses and loss adjustment expenses
|
3,659,736
|
|
|
4,926,270
|
|
|
4,486,134
|
|
|||
Net claims and benefits payable, at end of year
|
583,050
|
|
|
2,400,204
|
|
|
2,444,163
|
|
|||
Plus: Reinsurance ceded and other
|
2,718,207
|
|
|
1,496,515
|
|
|
1,254,443
|
|
|||
Claims and benefits payable, at end of year
|
$
|
3,301,257
|
|
|
$
|
3,896,719
|
|
|
$
|
3,698,606
|
|
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2016
|
|||||||||||||||||||
For the Years Ended December 31,
|
|
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1)
|
Cumulative Number of Reported Claims (2)
|
||||||||||||||||||
Accident Year
|
2012 Unaudited
|
2013 Unaudited
|
2014 Unaudited
|
2015 Unaudited
|
2016
|
|
|||||||||||||||
2012
|
$
|
566,880
|
|
$
|
529,670
|
|
$
|
529,419
|
|
$
|
529,474
|
|
$
|
529,470
|
|
|
$
|
378
|
|
3,961,225
|
|
2013
|
|
611,857
|
|
578,671
|
|
575,742
|
|
576,076
|
|
|
696
|
|
4,714,144
|
|
|||||||
2014
|
|
|
717,036
|
|
681,730
|
|
679,576
|
|
|
976
|
|
8,224,593
|
|
||||||||
2015
|
|
|
|
666,092
|
|
627,967
|
|
|
5,540
|
|
8,456,308
|
|
|||||||||
2016
|
|
|
|
|
678,736
|
|
|
89,419
|
|
8,209,481
|
|
||||||||||
|
|
|
|
Total
|
|
$
|
3,091,825
|
|
|
|
|
Average annual payout of incurred claims by age, net of reinsurance
|
||||
Year 1 Unaudited
|
Year 2 Unaudited
|
Year 3 Unaudited
|
Year 4 Unaudited
|
Year 5 Unaudited
|
84.3%
|
14.3%
|
0.9%
|
0.3%
|
0.2%
|
(1)
|
Includes a provision for development on case reserves.
|
(2)
|
Number of paid claims plus open (pending) claims, gross of reinsurance. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that our reinsurance includes non-proportional treaties.
|
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2016
|
|||||||||||||||||||
For the Years Ended December 31,
|
|
Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1)
|
Cumulative Number of Reported Claims (2)
|
||||||||||||||||||
Accident Year
|
2012 Unaudited
|
2013 Unaudited
|
2014 Unaudited
|
2015 Unaudited
|
2016
|
|
|||||||||||||||
2012
|
$
|
804,443
|
|
$
|
814,711
|
|
$
|
826,383
|
|
$
|
833,238
|
|
$
|
835,307
|
|
|
$
|
3,177
|
|
182,542
|
|
2013
|
|
744,944
|
|
752,712
|
|
771,180
|
|
774,979
|
|
|
7,932
|
|
196,107
|
|
|||||||
2014
|
|
|
897,835
|
|
858,232
|
|
857,899
|
|
|
19,012
|
|
212,477
|
|
||||||||
2015
|
|
|
|
794,428
|
|
755,616
|
|
|
39,596
|
|
197,444
|
|
|||||||||
2016
|
|
|
|
|
842,006
|
|
|
188,766
|
|
180,501
|
|
||||||||||
|
|
|
|
Total
|
|
$
|
4,065,807
|
|
|
|
|
Average annual payout of incurred claims by age, net of reinsurance
|
||||
Year 1 Unaudited
|
Year 2 Unaudited
|
Year 3 Unaudited
|
Year 4 Unaudited
|
Year 5 Unaudited
|
68.3%
|
24.7%
|
4.4%
|
1.8%
|
0.8%
|
(1)
|
Includes a provision for development on case reserves.
|
(2)
|
Number of paid claims plus open (pending) claims, gross of reinsurance. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that our reinsurance includes non-proportional treaties.
|
|
December 31, 2016
|
||
Net outstanding liabilities
|
|
||
Global Lifestyle
|
$
|
149,980
|
|
Global Housing
|
342,558
|
|
|
Other short-duration insurance lines (1)
|
42,375
|
|
|
Disposed short-duration insurance lines (AEB and AH) (2)
|
85,332
|
|
|
Claims and benefits payable, net of reinsurance
|
620,245
|
|
|
|
|
||
Reinsurance recoverable on unpaid claims
|
|
||
Global Lifestyle
|
106,038
|
|
|
Global Housing
|
189,936
|
|
|
Other short-duration insurance lines (3)
|
31,098
|
|
|
Disposed short-duration insurance lines (AEB and AH)
|
1,012,372
|
|
|
Total reinsurance recoverable on unpaid claims
|
1,339,444
|
|
|
|
|
||
Insurance lines other than short-duration
|
1,332,612
|
|
|
Unallocated claim adjustment expense
|
8,956
|
|
|
Total claims and benefits payable
|
$
|
3,301,257
|
|
(1)
|
Asbestos and pollution reserves make up
$25,092
of the other short-duration lines.
|
(2)
|
As of December 31, 2016, the net liabilities are
$27,949
for AEB and
$57,383
for AH.
|
(3)
|
Disposed business for which we maintained certain reserve liabilities contributed
$27,486
of the total for other short-duration lines.
|
|
2016
|
|
2015
|
||||
Ceded future policyholder benefits and expense
|
$
|
4,523,295
|
|
|
$
|
4,037,682
|
|
Ceded unearned premium
|
1,836,609
|
|
|
1,667,228
|
|
||
Ceded claims and benefits payable
|
2,643,203
|
|
|
1,429,128
|
|
||
Ceded paid losses
|
80,100
|
|
|
336,365
|
|
||
Total
|
$
|
9,083,207
|
|
|
$
|
7,470,403
|
|
Best Ratings of
Reinsurer_____
|
Ceded future
policyholder
benefits and
expense
|
|
Ceded
unearned
premiums
|
|
Ceded claims
and benefits
payable
|
|
Ceded paid
losses
|
|
Total
|
||||||||||
A++ or A+
|
$
|
3,073,708
|
|
|
$
|
46,056
|
|
|
$
|
2,147,140
|
|
|
$
|
17,093
|
|
|
$
|
5,283,997
|
|
A or A-
|
1,442,924
|
|
|
53,798
|
|
|
234,577
|
|
|
15,815
|
|
|
1,747,114
|
|
|||||
B++ or B+
|
662
|
|
|
22,600
|
|
|
2,708
|
|
|
—
|
|
|
25,970
|
|
|||||
B or B-
|
223
|
|
|
46
|
|
|
30
|
|
|
—
|
|
|
299
|
|
|||||
Not Rated
|
5,778
|
|
|
1,714,109
|
|
|
258,748
|
|
|
47,493
|
|
|
2,026,128
|
|
|||||
Total
|
4,523,295
|
|
|
1,836,609
|
|
|
2,643,203
|
|
|
80,401
|
|
|
9,083,508
|
|
|||||
Less: Allowance
|
—
|
|
|
—
|
|
|
—
|
|
|
(301
|
)
|
|
(301
|
)
|
|||||
Net reinsurance recoverable
|
$
|
4,523,295
|
|
|
$
|
1,836,609
|
|
|
$
|
2,643,203
|
|
|
$
|
80,100
|
|
|
$
|
9,083,207
|
|
|
Years Ended December 31,
|
||||||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||||||||||||||
|
Long
Duration
|
|
Short
Duration
|
|
Total
|
|
Long
Duration
|
|
Short
Duration
|
|
Total
|
|
Long
Duration
|
|
Short
Duration
|
|
Total
|
||||||||||||||||||
Direct earned
premiums
|
$
|
472,095
|
|
|
$
|
9,202,728
|
|
|
$
|
9,674,823
|
|
|
$
|
509,080
|
|
|
$
|
11,091,644
|
|
|
$
|
11,600,724
|
|
|
$
|
510,822
|
|
|
$
|
10,740,127
|
|
|
$
|
11,250,949
|
|
Premiums assumed
|
4,609
|
|
|
365,348
|
|
|
369,957
|
|
|
8,410
|
|
|
517,578
|
|
|
525,988
|
|
|
8,762
|
|
|
478,894
|
|
|
487,656
|
|
|||||||||
Premiums ceded
|
(385,533
|
)
|
|
(4,651,883
|
)
|
|
(5,037,416
|
)
|
|
(288,975
|
)
|
|
(3,486,740
|
)
|
|
(3,775,715
|
)
|
|
(276,525
|
)
|
|
(2,829,938
|
)
|
|
(3,106,463
|
)
|
|||||||||
Net earned
premiums
|
$
|
91,171
|
|
|
$
|
4,916,193
|
|
|
$
|
5,007,364
|
|
|
$
|
228,515
|
|
|
$
|
8,122,482
|
|
|
$
|
8,350,997
|
|
|
$
|
243,059
|
|
|
$
|
8,389,083
|
|
|
$
|
8,632,142
|
|
Direct policyholder
benefits
|
$
|
1,517,909
|
|
|
$
|
4,203,357
|
|
|
$
|
5,721,266
|
|
|
$
|
937,962
|
|
|
$
|
6,024,395
|
|
|
$
|
6,962,357
|
|
|
$
|
1,702,475
|
|
|
$
|
5,244,646
|
|
|
$
|
6,947,121
|
|
Policyholder
benefits assumed
|
15,093
|
|
|
154,187
|
|
|
169,280
|
|
|
19,948
|
|
|
290,925
|
|
|
310,873
|
|
|
23,911
|
|
|
306,365
|
|
|
330,276
|
|
|||||||||
Policyholder
benefits ceded
|
(1,272,382
|
)
|
|
(2,809,692
|
)
|
|
(4,082,074
|
)
|
|
(647,873
|
)
|
|
(1,882,822
|
)
|
|
(2,530,695
|
)
|
|
(1,373,953
|
)
|
|
(1,498,111
|
)
|
|
(2,872,064
|
)
|
|||||||||
Net policyholder
benefits
|
$
|
260,620
|
|
|
$
|
1,547,852
|
|
|
$
|
1,808,472
|
|
|
$
|
310,037
|
|
|
$
|
4,432,498
|
|
|
$
|
4,742,535
|
|
|
$
|
352,433
|
|
|
$
|
4,052,900
|
|
|
$
|
4,405,333
|
|
|
December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Shares outstanding, beginning
|
65,850,386
|
|
|
69,299,559
|
|
|
71,828,208
|
|
Vested restricted stock and restricted stock units, net
(a)
|
214,828
|
|
|
335,518
|
|
|
321,841
|
|
Issuance related to performance share units
(a)
|
290,067
|
|
|
269,576
|
|
|
277,164
|
|
Issuance related to ESPP
|
104,751
|
|
|
130,622
|
|
|
141,576
|
|
Issuance related to SARS exercise
|
—
|
|
|
—
|
|
|
29,260
|
|
Shares repurchased
|
(10,518,552
|
)
|
|
(4,184,889
|
)
|
|
(3,298,490
|
)
|
Shares outstanding, ending
|
55,941,480
|
|
|
65,850,386
|
|
|
69,299,559
|
|
(a)
|
Vested restricted stock, restricted stock units and performance share units are shown net of shares retired to cover participant tax liability.
|
|
Shares
|
|
Weighted-Average
Grant-Date
Fair Value
|
|||
Shares outstanding at December 31, 2015
|
748,819
|
|
|
$
|
59.34
|
|
Grants
|
378,950
|
|
|
80.24
|
|
|
Vests
|
(365,270
|
)
|
|
56.96
|
|
|
Forfeitures and adjustments
|
(77,599
|
)
|
|
64.50
|
|
|
Shares outstanding at December 31, 2016
|
684,900
|
|
|
$
|
71.72
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
RSU compensation expense
|
$
|
22,269
|
|
|
$
|
22,001
|
|
|
$
|
23,856
|
|
Income tax benefit
|
(7,785
|
)
|
|
(7,696
|
)
|
|
(8,337
|
)
|
|||
RSU compensation expense, net of tax
|
$
|
14,484
|
|
|
$
|
14,305
|
|
|
$
|
15,519
|
|
Total fair value of vested RSUs
|
$
|
27,819
|
|
|
$
|
35,771
|
|
|
$
|
35,206
|
|
|
Performance
Share Units
|
|
Weighted-Average
Grant-Date
Fair Value
|
|||
Performance share units outstanding, December 31, 2015
|
1,062,919
|
|
|
$
|
56.37
|
|
Grants
|
271,346
|
|
|
81.30
|
|
|
Vests
|
(484,352
|
)
|
|
44.22
|
|
|
Performance adjustment
(1)
|
100,090
|
|
|
44.22
|
|
|
Forfeitures and adjustments
|
(64,217
|
)
|
|
64.76
|
|
|
Performance share units outstanding, December 31, 2016
|
885,786
|
|
|
$
|
68.74
|
|
(1)
|
Represents the change in shares issued based upon the attainment of performance goals established by the Company.
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
PSU compensation expense
|
$
|
18,146
|
|
|
$
|
15,523
|
|
|
$
|
24,380
|
|
Income tax benefit
|
(6,339
|
)
|
|
(5,428
|
)
|
|
(8,516
|
)
|
|||
PSU compensation expense, net of tax
|
$
|
11,807
|
|
|
$
|
10,095
|
|
|
$
|
15,864
|
|
Total fair value of vested PSUs
|
$
|
39,687
|
|
|
$
|
27,461
|
|
|
$
|
31,609
|
|
|
For awards granted during the
year ended December 31,
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Expected volatility
|
20.46
|
%
|
|
19.06
|
%
|
|
24.66
|
%
|
Expected term (years)
|
2.81
|
|
|
2.81
|
|
|
2.80
|
|
Risk free interest rate
|
1.08
|
%
|
|
0.99
|
%
|
|
0.66
|
%
|
|
For awards issued during the
year ended December 31,
|
||||
|
2016
|
|
2015
|
|
2014
|
Expected volatility
|
18.30 - 22.02%
|
|
16.79 - 17.67%
|
|
19.02 - 20.65%
|
Risk free interest rates
|
0.13 - 0.49%
|
|
0.06 - 0.11%
|
|
0.09%
|
Dividend yield
|
1.74 - 1.89%
|
|
1.58 - 1.62%
|
|
1.52 - 1.92%
|
Expected term (years)
|
0.5
|
|
0.5
|
|
0.5
|
Period in 2016
|
Number of
Shares Purchased
|
|
Average Price
Paid Per Share
|
|
Total Number of
Shares
Purchased as Part of
Publicly Announced
Programs
|
||||
January
|
1,147,337
|
|
|
$
|
78.44
|
|
|
1,147,337
|
|
February
|
869,898
|
|
|
70.69
|
|
|
869,898
|
|
|
March
|
1,405,025
|
|
|
76.12
|
|
|
1,405,025
|
|
|
April
|
1,033,098
|
|
|
79.90
|
|
|
1,033,098
|
|
|
May
|
845,869
|
|
|
87.01
|
|
|
845,869
|
|
|
June
|
439,031
|
|
|
84.75
|
|
|
439,031
|
|
|
July
|
485,725
|
|
|
86.61
|
|
|
485,725
|
|
|
August
|
1,177,372
|
|
|
85.92
|
|
|
1,177,372
|
|
|
September
|
1,028,006
|
|
|
89.92
|
|
|
1,028,006
|
|
|
October
|
1,065,648
|
|
|
86.96
|
|
|
1,065,648
|
|
|
November
|
539,943
|
|
|
83.79
|
|
|
539,943
|
|
|
December
|
481,600
|
|
|
91.38
|
|
|
481,600
|
|
|
Total
|
10,518,552
|
|
|
$
|
82.65
|
|
|
10,518,552
|
|
|
Year Ended December 31, 2016
|
||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Unrealized
gains on
securities
|
|
OTTI
|
|
Pension
under-
funding
|
|
Accumulated
other
comprehensive
income
|
||||||||||
Balance at December 31, 2015
|
$
|
(270,734
|
)
|
|
$
|
495,443
|
|
|
$
|
22,434
|
|
|
$
|
(128,594
|
)
|
|
$
|
118,549
|
|
Change in accumulated other
comprehensive loss (income) before
reclassifications
|
(51,372
|
)
|
|
67,933
|
|
|
(2,116
|
)
|
|
80,359
|
|
|
94,804
|
|
|||||
Amounts reclassified from
accumulated other comprehensive
(loss) income
|
—
|
|
|
(104,109
|
)
|
|
314
|
|
|
(14,956
|
)
|
|
(118,751
|
)
|
|||||
Net current-period other
comprehensive (loss) income
|
(51,372
|
)
|
|
(36,176
|
)
|
|
(1,802
|
)
|
|
65,403
|
|
|
(23,947
|
)
|
|||||
Balance at December 31, 2016
|
$
|
(322,106
|
)
|
|
$
|
459,267
|
|
|
$
|
20,632
|
|
|
$
|
(63,191
|
)
|
|
$
|
94,602
|
|
|
Year Ended December 31, 2015
|
||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Unrealized
gains on
securities
|
|
OTTI
|
|
Pension
under-
funding
|
|
Accumulated
other
comprehensive
income
|
||||||||||
Balance at December 31, 2014
|
$
|
(127,711
|
)
|
|
$
|
793,082
|
|
|
$
|
26,594
|
|
|
$
|
(136,198
|
)
|
|
$
|
555,767
|
|
Change in accumulated other
comprehensive loss before
reclassifications
|
(143,023
|
)
|
|
(270,344
|
)
|
|
(5,574
|
)
|
|
(3,130
|
)
|
|
(422,071
|
)
|
|||||
Amounts reclassified from
accumulated other comprehensive
income (loss)
|
—
|
|
|
(27,295
|
)
|
|
1,414
|
|
|
10,734
|
|
|
(15,147
|
)
|
|||||
Net current-period other
comprehensive (loss) income
|
(143,023
|
)
|
|
(297,639
|
)
|
|
(4,160
|
)
|
|
7,604
|
|
|
(437,218
|
)
|
|||||
Balance at December 31, 2015
|
$
|
(270,734
|
)
|
|
$
|
495,443
|
|
|
$
|
22,434
|
|
|
$
|
(128,594
|
)
|
|
$
|
118,549
|
|
|
Year Ended December 31, 2014
|
||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Unrealized
gains on
securities
|
|
OTTI
|
|
Pension
under-
funding
|
|
Accumulated
other
comprehensive
income
|
||||||||||
Balance at December 31, 2013
|
$
|
(38,767
|
)
|
|
$
|
526,071
|
|
|
$
|
26,427
|
|
|
$
|
(86,901
|
)
|
|
$
|
426,830
|
|
Change in accumulated other
comprehensive (loss) income before
reclassifications
|
(88,944
|
)
|
|
299,022
|
|
|
1,655
|
|
|
(56,647
|
)
|
|
155,086
|
|
|||||
Amounts reclassified from
accumulated other comprehensive
income
|
—
|
|
|
(32,011
|
)
|
|
(1,488
|
)
|
|
7,350
|
|
|
(26,149
|
)
|
|||||
Net current-period other
comprehensive (loss) income
|
(88,944
|
)
|
|
267,011
|
|
|
167
|
|
|
(49,297
|
)
|
|
128,937
|
|
|||||
Balance at December 31, 2014
|
$
|
(127,711
|
)
|
|
$
|
793,082
|
|
|
$
|
26,594
|
|
|
$
|
(136,198
|
)
|
|
$
|
555,767
|
|
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
|
||||||||||
|
|
Years Ended December 31,
|
|
|
||||||||||
|
|
2016
|
|
2015
|
|
2014
|
|
|
||||||
Unrealized gains on securities
|
|
$
|
(160,167
|
)
|
|
$
|
(41,992
|
)
|
|
$
|
(49,248
|
)
|
|
Net realized gains on investments,
excluding other-than-temporary
impairment losses
|
|
|
56,058
|
|
|
14,697
|
|
|
17,237
|
|
|
Provision for income taxes
|
|||
|
|
$
|
(104,109
|
)
|
|
$
|
(27,295
|
)
|
|
$
|
(32,011
|
)
|
|
Net of tax
|
OTTI
|
|
$
|
483
|
|
|
$
|
2,176
|
|
|
$
|
(2,289
|
)
|
|
Portion of net loss (gain) recognized
in other comprehensive income,
before taxes
|
|
|
(169
|
)
|
|
(762
|
)
|
|
801
|
|
|
Provision for income taxes
|
|||
|
|
$
|
314
|
|
|
$
|
1,414
|
|
|
$
|
(1,488
|
)
|
|
Net of tax
|
Amortization of pension and
postretirement unrecognized net
periodic benefit cost:
|
|
|
|
|
|
|
|
|
||||||
Amortization of prior service cost
|
|
$
|
47
|
|
|
$
|
(146
|
)
|
|
$
|
(97
|
)
|
|
(1)
|
Amortization of net loss
|
|
1,694
|
|
|
16,660
|
|
|
11,405
|
|
|
(1)
|
|||
Gain on pension plan curtailment
|
|
(29,578
|
)
|
|
—
|
|
|
—
|
|
|
Gain on pension plan curtailment
|
|||
Loss due to pension freeze
|
|
4,827
|
|
|
—
|
|
|
—
|
|
|
Underwriting, general and administrative expenses
|
|||
|
|
(23,010
|
)
|
|
16,514
|
|
|
11,308
|
|
|
Total before tax
|
|||
|
|
8,054
|
|
|
(5,780
|
)
|
|
(3,958
|
)
|
|
Provision for income taxes
|
|||
|
|
$
|
(14,956
|
)
|
|
$
|
10,734
|
|
|
$
|
7,350
|
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
(118,751
|
)
|
|
$
|
(15,147
|
)
|
|
$
|
(26,149
|
)
|
|
Net of tax
|
(1)
|
These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 22 - Retirement and Other Employee Benefits for additional information.
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Statutory net income (loss)
|
|
|
|
|
|
||||||
P&C companies
|
$
|
288,475
|
|
|
$
|
437,422
|
|
|
$
|
440,930
|
|
Life and Health companies
|
600,240
|
|
|
(266,559
|
)
|
|
67,270
|
|
|||
Total statutory net income
(1)
|
$
|
888,715
|
|
|
$
|
170,863
|
|
|
$
|
508,200
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
Statutory capital and surplus
|
|
|
|
||||
P&C companies
|
$
|
1,175,565
|
|
|
$
|
1,137,978
|
|
Life and Health companies
|
508,928
|
|
|
1,153,137
|
|
||
Total statutory capital and surplus
|
$
|
1,684,493
|
|
|
$
|
2,291,115
|
|
|
Pension Benefits
|
|
Retirement Health Benefits
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||
Change in projected benefit obligation
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Projected benefit obligation at beginning
of year
|
$
|
(1,018,594
|
)
|
|
$
|
(1,064,042
|
)
|
|
$
|
(905,943
|
)
|
|
$
|
(93,510
|
)
|
|
$
|
(96,306
|
)
|
|
$
|
(79,046
|
)
|
Service cost
|
(3,261
|
)
|
|
(41,989
|
)
|
|
(36,609
|
)
|
|
—
|
|
|
(2,429
|
)
|
|
(2,188
|
)
|
||||||
Interest cost
|
(30,889
|
)
|
|
(41,766
|
)
|
|
(43,613
|
)
|
|
(3,535
|
)
|
|
(3,834
|
)
|
|
(3,868
|
)
|
||||||
Actuarial (loss) gain, including
curtailments and settlements
|
215,570
|
|
|
52,201
|
|
|
(127,940
|
)
|
|
(2,895
|
)
|
|
5,938
|
|
|
(13,910
|
)
|
||||||
Benefits paid
|
39,586
|
|
|
77,002
|
|
|
50,063
|
|
|
3,418
|
|
|
3,121
|
|
|
2,706
|
|
||||||
Projected benefit obligation at end of year
|
$
|
(797,588
|
)
|
|
$
|
(1,018,594
|
)
|
|
$
|
(1,064,042
|
)
|
|
$
|
(96,522
|
)
|
|
$
|
(93,510
|
)
|
|
$
|
(96,306
|
)
|
Change in plan assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fair value of plan assets at beginning of
year
|
$
|
832,686
|
|
|
$
|
879,211
|
|
|
$
|
786,750
|
|
|
$
|
46,856
|
|
|
$
|
50,068
|
|
|
$
|
46,971
|
|
Actual return on plan assets
|
67,383
|
|
|
(5,458
|
)
|
|
102,628
|
|
|
3,746
|
|
|
(291
|
)
|
|
5,403
|
|
||||||
Employer contributions
|
17,110
|
|
|
37,664
|
|
|
41,384
|
|
|
200
|
|
|
200
|
|
|
400
|
|
||||||
Benefits paid (including administrative
expenses)
|
(142,342
|
)
|
|
(78,731
|
)
|
|
(51,551
|
)
|
|
(3,418
|
)
|
|
(3,121
|
)
|
|
(2,706
|
)
|
||||||
Fair value of plan assets at end of year
|
$
|
774,837
|
|
|
$
|
832,686
|
|
|
$
|
879,211
|
|
|
$
|
47,384
|
|
|
$
|
46,856
|
|
|
$
|
50,068
|
|
Funded status at end of year
|
$
|
(22,751
|
)
|
|
$
|
(185,908
|
)
|
|
$
|
(184,831
|
)
|
|
$
|
(49,138
|
)
|
|
$
|
(46,654
|
)
|
|
$
|
(46,238
|
)
|
|
Qualified Pension Benefits
|
|
Non-Qualified Pension Benefits
|
|
Total Pension Benefits
|
||||||||||||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||||||||
Fair value of plan assets
|
$
|
774,837
|
|
|
$
|
832,686
|
|
|
$
|
879,211
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
774,837
|
|
|
$
|
832,686
|
|
|
$
|
879,211
|
|
Projected benefit obligation
|
(697,830
|
)
|
|
(884,659
|
)
|
|
(908,167
|
)
|
|
(99,758
|
)
|
|
(133,935
|
)
|
|
(155,875
|
)
|
|
(797,588
|
)
|
|
(1,018,594
|
)
|
|
(1,064,042
|
)
|
|||||||||
Funded status at end of year
|
$
|
77,007
|
|
|
$
|
(51,973
|
)
|
|
$
|
(28,956
|
)
|
|
$
|
(99,758
|
)
|
|
$
|
(133,935
|
)
|
|
$
|
(155,875
|
)
|
|
$
|
(22,751
|
)
|
|
$
|
(185,908
|
)
|
|
$
|
(184,831
|
)
|
Accumulated benefit obligation
|
$
|
697,830
|
|
|
$
|
764,654
|
|
|
$
|
761,802
|
|
|
$
|
99,758
|
|
|
$
|
113,712
|
|
|
$
|
133,185
|
|
|
$
|
797,588
|
|
|
$
|
878,366
|
|
|
$
|
894,987
|
|
|
Pension Benefits
|
|
Retirement Health Benefits
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||
Assets
|
$
|
77,007
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Liabilities
|
$
|
(99,758
|
)
|
|
$
|
(185,908
|
)
|
|
$
|
(184,831
|
)
|
|
$
|
(49,137
|
)
|
|
$
|
(46,654
|
)
|
|
$
|
(46,238
|
)
|
|
Pension Benefits
|
|
Retirement Health Benefits
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||
Net (loss) gain
|
$
|
(96,423
|
)
|
|
$
|
(201,578
|
)
|
|
$
|
(210,859
|
)
|
|
$
|
(185
|
)
|
|
$
|
1,987
|
|
|
$
|
(394
|
)
|
Prior service (cost) credit
|
(649
|
)
|
|
(2,339
|
)
|
|
(3,272
|
)
|
|
—
|
|
|
4,236
|
|
|
5,169
|
|
||||||
|
$
|
(97,072
|
)
|
|
$
|
(203,917
|
)
|
|
$
|
(214,131
|
)
|
|
$
|
(185
|
)
|
|
$
|
6,223
|
|
|
$
|
4,775
|
|
|
Pension Benefits
|
|
Retirement Health Benefits
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||||
Net periodic benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service cost
|
$
|
3,261
|
|
|
$
|
41,989
|
|
|
$
|
36,609
|
|
|
$
|
—
|
|
|
$
|
2,429
|
|
|
$
|
2,188
|
|
Interest cost
|
30,889
|
|
|
41,766
|
|
|
43,613
|
|
|
3,535
|
|
|
3,834
|
|
|
3,868
|
|
||||||
Expected return on plan assets
|
(54,576
|
)
|
|
(53,868
|
)
|
|
(49,552
|
)
|
|
(3,024
|
)
|
|
(3,267
|
)
|
|
(3,081
|
)
|
||||||
Amortization of prior service cost
|
47
|
|
|
787
|
|
|
836
|
|
|
—
|
|
|
(933
|
)
|
|
(933
|
)
|
||||||
Amortization of net loss (gain)
|
1,694
|
|
|
16,660
|
|
|
11,921
|
|
|
—
|
|
|
—
|
|
|
(516
|
)
|
||||||
Curtailment/settlement charge
|
(20,515
|
)
|
|
1,622
|
|
|
871
|
|
|
(4,236
|
)
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost
|
$
|
(39,200
|
)
|
|
$
|
48,956
|
|
|
$
|
44,298
|
|
|
$
|
(3,725
|
)
|
|
$
|
2,063
|
|
|
$
|
1,526
|
|
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss (gain)
|
$
|
(98,637
|
)
|
|
$
|
9,099
|
|
|
$
|
75,909
|
|
|
$
|
2,173
|
|
|
$
|
(2,382
|
)
|
|
$
|
11,588
|
|
Amortization of prior service cost, and effects of curtailments/settlements
|
(1,690
|
)
|
|
(933
|
)
|
|
(847
|
)
|
|
4,236
|
|
|
933
|
|
|
933
|
|
||||||
Amortization of net (loss) gain
|
(6,521
|
)
|
|
(18,381
|
)
|
|
(12,338
|
)
|
|
—
|
|
|
—
|
|
|
516
|
|
||||||
Total recognized in accumulated other comprehensive income (loss)
|
$
|
(106,848
|
)
|
|
$
|
(10,215
|
)
|
|
$
|
62,724
|
|
|
$
|
6,409
|
|
|
$
|
(1,449
|
)
|
|
$
|
13,037
|
|
Total recognized in net periodic benefit cost and other comprehensive income (loss)
|
$
|
(146,048
|
)
|
|
$
|
38,741
|
|
|
$
|
107,022
|
|
|
$
|
2,684
|
|
|
$
|
614
|
|
|
$
|
14,563
|
|
|
Qualified Pension Benefits
|
|
Nonqualified Pension Benefits
|
|
Retirement Health Benefits
|
|||||||||||||||||||||||
|
2016 Plan 1
|
2016 Plan 2
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Discount rate
|
4.31
|
%
|
4.15
|
%
|
|
4.55
|
%
|
|
4.09
|
%
|
|
3.89
|
%
|
|
4.25
|
%
|
|
3.77
|
%
|
|
4.21
|
%
|
|
4.53
|
%
|
|
4.07
|
%
|
|
Qualified Pension Benefits
|
|
Nonqualified Pension Benefits
|
|
Retirement Health Benefits
|
|||||||||||||||||||||||
|
2016 Plan 1
|
2016 Plan 2
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Discount rates:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Effective discount rate for benefit obligations
|
4.56
|
%
|
4.48
|
%
|
|
4.09
|
%
|
|
4.98
|
%
|
|
4.25
|
%
|
|
3.77
|
%
|
|
4.64
|
%
|
|
4.53
|
%
|
|
4.07
|
%
|
|
4.99
|
%
|
Effective rate for interest on benefit obligations
|
3.75
|
%
|
3.74
|
%
|
|
4.09
|
%
|
|
4.98
|
%
|
|
3.44
|
%
|
|
3.77
|
%
|
|
4.64
|
%
|
|
3.86
|
%
|
|
4.07
|
%
|
|
4.99
|
%
|
Effective discount rate for service cost
|
4.34
|
%
|
—
|
%
|
|
4.09
|
%
|
|
4.98
|
%
|
|
3.72
|
%
|
|
3.77
|
%
|
|
4.64
|
%
|
|
—
|
%
|
|
4.07
|
%
|
|
4.99
|
%
|
Effective rate for interest on service cost
|
3.62
|
%
|
—
|
%
|
|
4.09
|
%
|
|
4.98
|
%
|
|
3.22
|
%
|
|
3.77
|
%
|
|
4.64
|
%
|
|
—
|
%
|
|
4.07
|
%
|
|
4.99
|
%
|
Expected long-term return on plan assets
|
6.75
|
%
|
6.75
|
%
|
|
6.75
|
%
|
|
6.75
|
%
|
|
6.75
|
%
|
|
6.75
|
%
|
|
—
|
%
|
|
6.75
|
%
|
|
6.75
|
%
|
|
6.75
|
%
|
*
|
Assumed rates of compensation increases are also used to determine net periodic benefit cost. Assumed rates varied by age and ranged from
3.25%
to
9.30%
for the Pension Benefits for the years ended December 31, 2016, 2015 and 2014.
|
|
Retirement Health Benefits
|
|||||||
|
2016
|
|
2015
|
|
2014
|
|||
Health care cost trend rate assumed for next year:
|
|
|
|
|
|
|||
Pre-65 Non-reimbursement Plan
|
8.6
|
%
|
|
9.3
|
%
|
|
8.1
|
%
|
Post-65 Non-reimbursement Plan (Medical)
|
5.6
|
%
|
|
5.7
|
%
|
|
8.0
|
%
|
Post-65 Non-reimbursement Plan (Rx)
|
9.3
|
%
|
|
10.2
|
%
|
|
8.0
|
%
|
Pre-65 Reimbursement Plan
|
7.6
|
%
|
|
8.1
|
%
|
|
8.1
|
%
|
Post-65 Reimbursement Plan
|
7.6
|
%
|
|
8.1
|
%
|
|
8.1
|
%
|
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
|
4.5
|
%
|
|
4.5
|
%
|
|
4.5
|
%
|
Year that the rate reaches the ultimate trend rate
|
|
|
|
|
|
|||
Pre-65 Non-reimbursement Plan
|
2030
|
|
2030
|
|
2028
|
|||
Post-65 Non-reimbursement Plan (Medical & Rx)
|
2030
|
|
2030
|
|
2028
|
|||
Pre-65 Reimbursement Plan
|
2030
|
|
2030
|
|
2028
|
|||
Post-65 Reimbursement Plan
|
2030
|
|
2030
|
|
2028
|
|
Retirement Health Benefits
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
One percentage point increase in health care cost trend rate
|
|
|
|
|
|
||||||
Effect on total of service and interest cost components
|
$
|
24
|
|
|
$
|
38
|
|
|
$
|
39
|
|
Effect on postretirement benefit obligation
|
657
|
|
|
622
|
|
|
646
|
|
|||
One percentage point decrease in health care cost trend rate
|
|
|
|
|
|
||||||
Effect on total of service and interest cost components
|
$
|
(35
|
)
|
|
$
|
(59
|
)
|
|
$
|
(60
|
)
|
Effect on postretirement benefit obligation
|
(948
|
)
|
|
(908
|
)
|
|
(933
|
)
|
|
The Plans’
Asset Allocation Percentages
|
|||||||
Financial Assets (1)
|
Low
|
|
Target (2)
|
|
High
|
|||
Equity securities:
|
|
|
|
|
|
|||
Common stock- U.S. listed small cap
|
5.0
|
%
|
|
7.5
|
%
|
|
10.0
|
%
|
Mutual fund- U.S. listed large cap
|
10.0
|
%
|
|
15.0
|
%
|
|
20.0
|
%
|
Common/collective trust- foreign listed
|
5.0
|
%
|
|
7.5
|
%
|
|
10.0
|
%
|
Fixed maturity securities:
|
|
|
|
|
|
|||
U.S. & foreign government and government agencies and authorities
|
6.5
|
%
|
|
9.0
|
%
|
|
11.5
|
%
|
Corporate- U.S. & foreign investment grade
|
31.0
|
%
|
|
33.5
|
%
|
|
36.0
|
%
|
Corporate- U.S. & foreign high yield
|
5.0
|
%
|
|
7.5
|
%
|
|
10.0
|
%
|
Alternative investment fund:
|
|
|
|
|
|
|||
Multi-strategy hedge fund
|
5.5
|
%
|
|
8.0
|
%
|
|
10.5
|
%
|
Commingled real estate fund
|
3.5
|
%
|
|
6.0
|
%
|
|
8.5
|
%
|
Private equity fund
|
—
|
%
|
|
6.0
|
%
|
|
8.5
|
%
|
(1)
|
The Plans’ long-term asset allocation targets are
30%
equity,
50%
fixed income and
20%
investment funds. The Company invests certain plan assets in investment funds, examples of which include real estate investment funds and private equity funds. Amounts allocated for these investments are included in the alternative investment funds caption of the asset allocation at December 31, 2016, provided in the section above.
|
(2)
|
It is understood that these guidelines are targets and that deviations may occur periodically as a result of cash flows, market impact or short-term decisions implemented by either the Investment Committee or their investment managers.
|
Qualified Pension Benefits
|
December 31, 2016
|
||||||||||||||
Financial Assets
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Short-term investment funds
|
$
|
29,631
|
|
|
$
|
—
|
|
|
$
|
29,631
|
|
|
$
|
—
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stock- U.S. listed small cap
|
79,941
|
|
|
79,941
|
|
|
—
|
|
|
—
|
|
||||
Preferred stock
|
4,059
|
|
|
4,059
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds- U.S. listed large cap
|
33,049
|
|
|
33,049
|
|
|
—
|
|
|
—
|
|
||||
Common/collective trust- foreign listed
|
60,175
|
|
|
—
|
|
|
60,175
|
|
|
—
|
|
||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
U.S. & foreign government and government
agencies and authorities
|
133,224
|
|
|
—
|
|
|
133,224
|
|
|
—
|
|
||||
Corporate- U.S. & foreign investment grade
|
246,701
|
|
|
—
|
|
|
246,701
|
|
|
—
|
|
||||
Corporate- U.S. & foreign high yield
|
60,971
|
|
|
—
|
|
|
60,971
|
|
|
—
|
|
||||
Investment fund:
|
|
|
|
|
|
|
|
||||||||
Multi-strategy hedge fund
|
61,699
|
|
|
—
|
|
|
—
|
|
|
61,699
|
|
||||
Commingled real estate fund
|
53,032
|
|
|
—
|
|
|
53,032
|
|
|
—
|
|
||||
Private equity fund
|
7,269
|
|
|
—
|
|
|
—
|
|
|
7,269
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
|
13,959
|
|
|
—
|
|
|
13,959
|
|
|
—
|
|
||||
Total financial assets
|
$
|
783,710
|
|
(1)
|
$
|
117,049
|
|
|
$
|
597,693
|
|
|
$
|
68,968
|
|
(1)
|
The difference between the fair value of plan assets above and the amount used in determining the funded status is due to interest receivable which is not required to be included in the fair value hierarchy.
|
Retirement Health Benefits
|
December 31, 2016
|
||||||||||||||
Financial Assets
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Short-term investment funds
|
$
|
1,812
|
|
|
$
|
—
|
|
|
$
|
1,812
|
|
|
$
|
—
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stock- U.S. listed small cap
|
4,889
|
|
|
4,889
|
|
|
—
|
|
|
—
|
|
||||
Preferred stock
|
248
|
|
|
248
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds- U.S. listed large cap
|
2,021
|
|
|
2,021
|
|
|
—
|
|
|
—
|
|
||||
Common/collective trust- foreign listed
|
3,680
|
|
|
—
|
|
|
3,680
|
|
|
—
|
|
||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
U.S. & foreign government and government
agencies and authorities
|
8,147
|
|
|
—
|
|
|
8,147
|
|
|
—
|
|
||||
Corporate- U.S. & foreign investment grade
|
15,087
|
|
|
—
|
|
|
15,087
|
|
|
—
|
|
||||
Corporate- U.S. & foreign high yield
|
3,729
|
|
|
—
|
|
|
3,729
|
|
|
—
|
|
||||
Investment fund:
|
|
|
|
|
|
|
|
||||||||
Multi-strategy hedge fund
|
3,773
|
|
|
—
|
|
|
—
|
|
|
3,773
|
|
||||
Commingled real estate fund
|
3,243
|
|
|
—
|
|
|
3,243
|
|
|
—
|
|
||||
Private equity fund
|
445
|
|
|
—
|
|
|
—
|
|
|
445
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
|
853
|
|
|
—
|
|
|
853
|
|
|
—
|
|
||||
Total financial assets
|
$
|
47,927
|
|
(1)
|
$
|
7,158
|
|
|
$
|
36,551
|
|
|
$
|
4,218
|
|
(1)
|
The difference between the fair value of plan assets above and the amount used in determining the funded status is due to interest receivable which is not required to be included in the fair value hierarchy.
|
Qualified Pension Benefits
|
December 31, 2015
|
||||||||||||||
Financial Assets
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Short-term investment funds
|
$
|
30,628
|
|
|
$
|
—
|
|
|
$
|
30,628
|
|
|
$
|
—
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stock- U.S. listed small cap
|
66,948
|
|
|
66,948
|
|
|
—
|
|
|
—
|
|
||||
Preferred stock
|
4,420
|
|
|
4,420
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds- U.S. listed large cap
|
141,580
|
|
|
141,580
|
|
|
—
|
|
|
—
|
|
||||
Common/collective trust- foreign listed
|
57,948
|
|
|
—
|
|
|
57,948
|
|
|
—
|
|
||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
U.S. & foreign government and government
agencies and authorities
|
126,531
|
|
|
—
|
|
|
126,531
|
|
|
—
|
|
||||
Corporate- U.S. & foreign investment grade
|
221,766
|
|
|
—
|
|
|
221,766
|
|
|
—
|
|
||||
Corporate- U.S. & foreign high yield
|
57,238
|
|
|
—
|
|
|
57,238
|
|
|
—
|
|
||||
Investment fund:
|
|
|
|
|
|
|
|
||||||||
Multi-strategy hedge fund
|
61,761
|
|
|
—
|
|
|
—
|
|
|
61,761
|
|
||||
Commingled real estate fund
|
49,643
|
|
|
—
|
|
|
49,643
|
|
|
—
|
|
||||
Private equity fund
|
6,210
|
|
|
—
|
|
|
—
|
|
|
6,210
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
|
14,024
|
|
|
—
|
|
|
14,024
|
|
|
—
|
|
||||
Total financial assets
|
$
|
838,697
|
|
(1)
|
$
|
212,948
|
|
|
$
|
557,778
|
|
|
$
|
67,971
|
|
(1)
|
The difference between the fair value of plan assets above and the amount used in determining the funded status is due to interest receivable which is not required to be included in the fair value hierarchy.
|
Retirement Health Benefits
|
December 31, 2015
|
||||||||||||||
Financial Assets
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
||||||||
Short-term investment funds
|
$
|
1,723
|
|
|
$
|
—
|
|
|
$
|
1,723
|
|
|
$
|
—
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Common stock- U.S. listed small cap
|
3,767
|
|
|
3,767
|
|
|
—
|
|
|
—
|
|
||||
Preferred stock
|
249
|
|
|
249
|
|
|
—
|
|
|
—
|
|
||||
Mutual funds- U.S. listed large cap
|
7,967
|
|
|
7,967
|
|
|
—
|
|
|
—
|
|
||||
Common/collective trust- foreign listed
|
3,261
|
|
|
—
|
|
|
3,261
|
|
|
—
|
|
||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
||||||||
U.S. & foreign government and government
agencies and authorities
|
7,120
|
|
|
—
|
|
|
7,120
|
|
|
—
|
|
||||
Corporate- U.S. & foreign investment grade
|
12,479
|
|
|
—
|
|
|
12,479
|
|
|
—
|
|
||||
Corporate- U.S. & foreign high yield
|
3,221
|
|
|
—
|
|
|
3,221
|
|
|
—
|
|
||||
Investment fund:
|
|
|
|
|
|
|
|
||||||||
Multi-strategy hedge fund
|
3,475
|
|
|
—
|
|
|
—
|
|
|
3,475
|
|
||||
Commingled real estate fund
|
2,794
|
|
|
—
|
|
|
2,794
|
|
|
—
|
|
||||
Private equity fund
|
350
|
|
|
—
|
|
|
—
|
|
|
350
|
|
||||
Derivatives:
|
|
|
|
|
|
|
|
||||||||
Interest rate swap
|
789
|
|
|
—
|
|
|
789
|
|
|
—
|
|
||||
Total financial assets
|
$
|
47,195
|
|
(1)
|
$
|
11,983
|
|
|
$
|
31,387
|
|
|
$
|
3,825
|
|
(1)
|
The difference between the fair value of plan assets above and the amount used in determining the funded status is due to interest receivable which is not required to be included in the fair value hierarchy.
|
|
Pension
Benefit
|
|
Retirement
Health
Benefit
|
||||
Beginning balance at December 31, 2015
|
$
|
67,971
|
|
|
$
|
3,825
|
|
Purchases
|
515
|
|
|
32
|
|
||
Refund of capital
|
(991
|
)
|
|
(61
|
)
|
||
Actual return on plan assets and plan expenses still held at the reporting date
|
1,473
|
|
|
422
|
|
||
Ending balance at December 31, 2016
|
$
|
68,968
|
|
|
$
|
4,218
|
|
|
Pension
Benefits
|
|
Retirement
Health
Benefits
|
||||
2017
|
$
|
51,054
|
|
|
$
|
4,348
|
|
2018
|
50,240
|
|
|
4,670
|
|
||
2019
|
47,145
|
|
|
4,984
|
|
||
2020
|
56,215
|
|
|
5,298
|
|
||
2021
|
48,029
|
|
|
5,595
|
|
||
2022 - 2026
|
258,972
|
|
|
31,546
|
|
||
Total
|
$
|
511,655
|
|
|
$
|
56,441
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
Numerator
|
|
|
|
|
|
||||||
Net income
|
$
|
565,350
|
|
|
$
|
141,555
|
|
|
$
|
470,907
|
|
Deduct dividends paid
|
(125,346
|
)
|
|
(94,168
|
)
|
|
(77,495
|
)
|
|||
Undistributed earnings
|
$
|
440,004
|
|
|
$
|
47,387
|
|
|
$
|
393,412
|
|
Denominator
|
|
|
|
|
|
||||||
Weighted average shares outstanding used in basic earnings per share
calculations
|
61,261,288
|
|
|
68,163,825
|
|
|
72,181,447
|
|
|||
Incremental common shares from:
|
|
|
|
|
|
||||||
PSUs
|
632,731
|
|
|
789,547
|
|
|
905,648
|
|
|||
ESPP
|
40,755
|
|
|
63,837
|
|
|
64,915
|
|
|||
Weighted average shares used in diluted earnings per share calculations
|
61,934,774
|
|
|
69,017,209
|
|
|
73,152,010
|
|
|||
Earnings per common share – Basic
|
|
|
|
|
|
||||||
Distributed earnings
|
$
|
2.05
|
|
|
$
|
1.38
|
|
|
$
|
1.06
|
|
Undistributed earnings
|
7.18
|
|
|
0.70
|
|
|
5.46
|
|
|||
Net income
|
$
|
9.23
|
|
|
$
|
2.08
|
|
|
$
|
6.52
|
|
Earnings per common share – Diluted
|
|
|
|
|
|
||||||
Distributed earnings
|
$
|
2.03
|
|
|
$
|
1.36
|
|
|
$
|
1.06
|
|
Undistributed earnings
|
7.10
|
|
|
0.69
|
|
|
5.38
|
|
|||
Net income
|
$
|
9.13
|
|
|
$
|
2.05
|
|
|
$
|
6.44
|
|
|
Three Month Periods Ended
|
||||||||||||||
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
2016
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
2,147,527
|
|
|
$
|
1,797,793
|
|
|
$
|
1,834,168
|
|
|
$
|
1,752,292
|
|
Income before provision for income taxes
|
337,507
|
|
|
235,512
|
|
|
220,858
|
|
|
54,711
|
|
||||
Net income
|
220,318
|
|
|
169,349
|
|
|
144,367
|
|
|
31,316
|
|
||||
Basic per share data:
|
|
|
|
|
|
|
|
||||||||
Income before provision for income taxes
|
$
|
5.19
|
|
|
$
|
3.78
|
|
|
$
|
3.66
|
|
|
$
|
0.95
|
|
Net income
|
$
|
3.38
|
|
|
$
|
2.72
|
|
|
$
|
2.40
|
|
|
$
|
0.54
|
|
Diluted per share data:
|
|
|
|
|
|
|
|
||||||||
Income before provision for income taxes
|
$
|
5.12
|
|
|
$
|
3.75
|
|
|
$
|
3.63
|
|
|
$
|
0.94
|
|
Net income
|
$
|
3.34
|
|
|
$
|
2.70
|
|
|
$
|
2.37
|
|
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
||||||||
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
2015
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
2,598,610
|
|
|
$
|
2,644,894
|
|
|
$
|
2,534,156
|
|
|
$
|
2,547,834
|
|
Income (loss) before provision (benefit) for income taxes
|
83,193
|
|
|
40,025
|
|
|
(32,251
|
)
|
|
110,214
|
|
||||
Net income (loss)
|
50,044
|
|
|
32,789
|
|
|
(7,022
|
)
|
|
65,744
|
|
||||
Basic per share data:
|
|
|
|
|
|
|
|
||||||||
Income (loss) before provision (benefit) for income taxes
|
$
|
1.19
|
|
|
$
|
0.58
|
|
|
$
|
(0.48
|
)
|
|
$
|
1.65
|
|
Net income (loss)
|
$
|
0.72
|
|
|
$
|
0.48
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.99
|
|
Diluted* per share data:
|
|
|
|
|
|
|
|
||||||||
Income (loss) before provision (benefit) for income taxes
|
$
|
1.18
|
|
|
$
|
0.58
|
|
|
$
|
(0.48
|
)
|
|
$
|
1.63
|
|
Net income (loss)
|
$
|
0.71
|
|
|
$
|
0.47
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.97
|
|
2017
|
$
|
23,779
|
|
2018
|
20,134
|
|
|
2019
|
14,907
|
|
|
2020
|
11,037
|
|
|
2021
|
7,549
|
|
|
Thereafter
|
5,815
|
|
|
Total minimum future lease payments (a)
|
$
|
83,221
|
|
|
Cost or
Amortized Cost
|
|
Fair Value
|
|
Amount at which
shown in balance
sheet
|
||||||
|
(in thousands)
|
||||||||||
Fixed maturity securities:
|
|
|
|
|
|
||||||
U.S. government and government agencies and authorities
|
$
|
172,782
|
|
|
$
|
174,886
|
|
|
$
|
174,886
|
|
States, municipalities and political subdivisions
|
446,882
|
|
|
476,075
|
|
|
476,075
|
|
|||
Foreign governments
|
508,871
|
|
|
568,468
|
|
|
568,468
|
|
|||
Asset-backed
|
2,658
|
|
|
3,677
|
|
|
3,677
|
|
|||
Commercial mortgage-backed
|
39,267
|
|
|
38,416
|
|
|
38,416
|
|
|||
Residential mortgage-backed
|
1,071,179
|
|
|
1,101,312
|
|
|
1,101,312
|
|
|||
U.S. corporate
|
5,022,769
|
|
|
5,461,250
|
|
|
5,461,250
|
|
|||
Foreign corporate
|
1,606,429
|
|
|
1,748,061
|
|
|
1,748,061
|
|
|||
Total fixed maturity securities
|
8,870,837
|
|
|
9,572,145
|
|
|
9,572,145
|
|
|||
Equity securities:
|
|
|
|
|
|
||||||
Common stocks
|
11,911
|
|
|
20,794
|
|
|
20,794
|
|
|||
Non-redeemable preferred stocks
|
369,920
|
|
|
400,567
|
|
|
400,567
|
|
|||
Total equity securities
|
381,831
|
|
|
421,361
|
|
|
421,361
|
|
|||
Commercial mortgage loans on real estate
|
624,033
|
|
|
634,872
|
|
|
624,033
|
|
|||
Policy loans
|
38,533
|
|
|
38,533
|
|
|
38,533
|
|
|||
Short-term investments
|
227,740
|
|
|
227,740
|
|
|
227,740
|
|
|||
Other investments
|
595,264
|
|
|
595,264
|
|
|
595,264
|
|
|||
Total investments
|
$
|
10,738,238
|
|
|
$
|
11,489,915
|
|
|
$
|
11,479,076
|
|
|
December 31,
|
||||||
|
2016
|
|
2015
|
||||
|
(in thousands except number
of shares)
|
||||||
Assets
|
|
|
|
||||
Investments:
|
|
|
|
||||
Equity investment in subsidiaries
|
$
|
4,147,600
|
|
|
$
|
5,125,524
|
|
Fixed maturity securities available for sale, at fair value (amortized cost – $428,710 in 2016 and $143,069 in 2015)
|
429,174
|
|
|
140,748
|
|
||
Equity securities available for sale, at fair value (amortized cost – $20,344 in 2016 and $4,694 in 2015)
|
21,127
|
|
|
5,389
|
|
||
Short-term investments
|
220,041
|
|
|
(1,810
|
)
|
||
Other investments
|
92,343
|
|
|
93,012
|
|
||
Total investments
|
4,910,285
|
|
|
5,362,863
|
|
||
Cash and cash equivalents
|
264,839
|
|
|
354,146
|
|
||
Receivable from subsidiaries, net
|
42,458
|
|
|
24,688
|
|
||
Income tax receivable
|
—
|
|
|
23,438
|
|
||
Accrued investment income
|
4,873
|
|
|
1,328
|
|
||
Property and equipment, at cost less accumulated depreciation
|
134,261
|
|
|
126,271
|
|
||
Other assets
|
27,627
|
|
|
59,671
|
|
||
Total assets
|
$
|
5,384,343
|
|
|
$
|
5,952,405
|
|
Liabilities
|
|
|
|
||||
Accounts payable and other liabilities
|
$
|
198,942
|
|
|
$
|
263,781
|
|
Income tax payable
|
20,281
|
|
|
—
|
|
||
Debt
|
1,067,020
|
|
|
1,164,657
|
|
||
Total liabilities
|
1,286,243
|
|
|
1,428,438
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
||||
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 55,941,480 and 65,850,386 shares outstanding at December 31, 2016 and 2015, respectively
|
1,504
|
|
|
1,497
|
|
||
Additional paid-in capital
|
3,175,867
|
|
|
3,148,409
|
|
||
Retained earnings
|
5,296,678
|
|
|
4,856,674
|
|
||
Accumulated other comprehensive income
|
94,602
|
|
|
118,549
|
|
||
Treasury stock, at cost; 94,041,583 and 83,523,031 shares at December 31, 2016 and 2015,
respectively |
(4,470,551
|
)
|
|
(3,601,162
|
)
|
||
Total stockholders’ equity
|
4,098,100
|
|
|
4,523,967
|
|
||
Total liabilities and stockholders’ equity
|
$
|
5,384,343
|
|
|
$
|
5,952,405
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in thousands)
|
||||||||||
Revenues
|
|
|
|
|
|
||||||
Net investment income
|
$
|
7,256
|
|
|
$
|
7,298
|
|
|
$
|
7,212
|
|
Net realized gains on investments
|
2,921
|
|
|
12,507
|
|
|
4,288
|
|
|||
Fees and other income
|
85,149
|
|
|
95,986
|
|
|
90,217
|
|
|||
Gain on pension plan curtailment
|
29,578
|
|
|
—
|
|
|
—
|
|
|||
Equity in net income of subsidiaries
|
641,195
|
|
|
227,805
|
|
|
584,464
|
|
|||
Total revenues
|
766,099
|
|
|
343,596
|
|
|
686,181
|
|
|||
Expenses
|
|
|
|
|
|
||||||
General and administrative expenses
|
191,338
|
|
|
223,953
|
|
|
197,341
|
|
|||
Interest expense
|
57,619
|
|
|
55,116
|
|
|
58,394
|
|
|||
Loss on extinguishment of debt
|
23,031
|
|
|
—
|
|
|
—
|
|
|||
Total expenses
|
271,988
|
|
|
279,069
|
|
|
255,735
|
|
|||
Income before benefit for income taxes
|
494,111
|
|
|
64,527
|
|
|
430,446
|
|
|||
Benefit for income taxes
|
71,239
|
|
|
77,028
|
|
|
40,461
|
|
|||
Net income
|
$
|
565,350
|
|
|
$
|
141,555
|
|
|
$
|
470,907
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in thousands)
|
||||||||||
Net income
|
$
|
565,350
|
|
|
$
|
141,555
|
|
|
$
|
470,907
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
||||||
Change in unrealized gains on securities, net of taxes of
$(398), $8,787, and $(3,273), respectively
|
2,476
|
|
|
(7,876
|
)
|
|
6,078
|
|
|||
Change in foreign currency translation, net of taxes of
$(15), $(45), and $(68), respectively
|
28
|
|
|
84
|
|
|
126
|
|
|||
Amortization of pension and postretirement
unrecognized net periodic benefit cost and change in
funded status, net of taxes of $(35,228), $(4,082), and
$26,516, respectively
|
65,423
|
|
|
7,580
|
|
|
(49,244
|
)
|
|||
Change in subsidiary other comprehensive income
|
(91,874
|
)
|
|
(437,006
|
)
|
|
171,977
|
|
|||
Total other comprehensive (loss) income
|
(23,947
|
)
|
|
(437,218
|
)
|
|
128,937
|
|
|||
Total comprehensive income (loss)
|
$
|
541,403
|
|
|
$
|
(295,663
|
)
|
|
$
|
599,844
|
|
|
Years Ended December 31,
|
||||||||||
|
2016
|
|
2015
|
|
2014
|
||||||
|
(in thousands)
|
||||||||||
Operating Activities
|
|
|
|
|
|
||||||
Net cash provided by operating activities
|
$
|
994,218
|
|
|
$
|
649,345
|
|
|
$
|
397,665
|
|
Investing Activities
|
|
|
|
|
|
||||||
Sales of:
|
|
|
|
|
|
||||||
Fixed maturity securities available for sale
|
440,989
|
|
|
442,777
|
|
|
444,589
|
|
|||
Equity securities available for sale
|
10,173
|
|
|
32,297
|
|
|
8,895
|
|
|||
Other invested assets
|
225
|
|
|
447
|
|
|
—
|
|
|||
Property and equipment and other
|
52
|
|
|
35
|
|
|
—
|
|
|||
Subsidiary (1)
|
13,288
|
|
|
3
|
|
|
—
|
|
|||
Maturities, calls, prepayments, and scheduled redemption of:
|
|
|
|
|
|
||||||
Fixed maturity securities available for sale
|
17,127
|
|
|
20,167
|
|
|
45,145
|
|
|||
Purchases of:
|
|
|
|
|
|
||||||
Fixed maturity securities available for sale
|
(480,187
|
)
|
|
(461,709
|
)
|
|
(253,866
|
)
|
|||
Equity securities available for sale
|
(25,637
|
)
|
|
(13,288
|
)
|
|
(9,433
|
)
|
|||
Other invested assets
|
(3,707
|
)
|
|
(2,649
|
)
|
|
(4,134
|
)
|
|||
Property and equipment and other
|
(26,270
|
)
|
|
(47,542
|
)
|
|
(49,569
|
)
|
|||
Capital contributed to subsidiaries
|
(86,500
|
)
|
|
(439,476
|
)
|
|
(453,700
|
)
|
|||
Return of capital contributions from subsidiaries
|
3,546
|
|
|
172,391
|
|
|
205,250
|
|
|||
Change in short-term investments
|
154,892
|
|
|
4,977
|
|
|
115,856
|
|
|||
Net cash provided by (used in) investing activities
|
17,991
|
|
|
(291,570
|
)
|
|
49,033
|
|
|||
Financing Activities
|
|
|
|
|
|
||||||
Issuance of debt
|
249,625
|
|
|
—
|
|
|
—
|
|
|||
Repayment of debt, including extinguishment
|
(373,031
|
)
|
|
—
|
|
|
(467,330
|
)
|
|||
Change in tax benefit from share-based payment arrangements
|
5,610
|
|
|
(4,067
|
)
|
|
14,900
|
|
|||
Acquisition of common stock
|
(863,051
|
)
|
|
(292,906
|
)
|
|
(215,183
|
)
|
|||
Dividends paid
|
(125,346
|
)
|
|
(94,168
|
)
|
|
(77,495
|
)
|
|||
Net cash used in financing activities
|
(1,106,193
|
)
|
|
(391,141
|
)
|
|
(745,108
|
)
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
50
|
|
|||
Cash included in held for sale assets
|
4,677
|
|
|
(4,677
|
)
|
|
—
|
|
|||
Change in cash and cash equivalents
|
(89,307
|
)
|
|
(38,043
|
)
|
|
(298,360
|
)
|
|||
Cash and cash equivalents at beginning of period
|
354,146
|
|
|
392,189
|
|
|
690,549
|
|
|||
Cash and cash equivalents at end of period
|
$
|
264,839
|
|
|
$
|
354,146
|
|
|
$
|
392,189
|
|
(1)
|
Includes amounts related to the sale of Assurant Employee Benefits. See Note 5 for further information.
|
Segment
|
Deferred
acquisition
costs
|
|
Future
policy
benefits and
expenses
|
|
Unearned
premiums
|
|
Claims and
benefits
payable
|
|
Premium
revenue
|
|
Net
investment
income
|
|
Benefits
claims,
losses
and
settlement
expenses
|
|
Amortization
of deferred
acquisition
costs
|
|
Other
operating
expenses(1)
|
|
Property
and
Casualty
premiums
written
|
||||||||||||||||||||
(in thousands)
|
|||||||||||||||||||||||||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Global
Lifestyle
|
$
|
2,573,878
|
|
|
$
|
135,873
|
|
|
$
|
5,046,687
|
|
|
$
|
263,320
|
|
|
$
|
2,901,480
|
|
|
$
|
113,085
|
|
|
$
|
663,781
|
|
|
$
|
1,044,041
|
|
|
$
|
1,903,662
|
|
|
$
|
516,821
|
|
Global
Preneed
|
816,260
|
|
|
5,401,380
|
|
|
313,367
|
|
|
24,449
|
|
|
61,691
|
|
|
259,755
|
|
|
250,370
|
|
|
54,136
|
|
|
62,701
|
|
|
—
|
|
||||||||||
Global
Housing
|
124,447
|
|
|
1,847
|
|
|
1,424,224
|
|
|
577,753
|
|
|
1,829,112
|
|
|
72,713
|
|
|
828,565
|
|
|
238,178
|
|
|
1,013,733
|
|
|
1,804,406
|
|
||||||||||
Employee
Benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177,971
|
|
|
17,340
|
|
|
118,481
|
|
|
5,858
|
|
|
61,507
|
|
|
—
|
|
||||||||||
Health
|
—
|
|
|
9,495
|
|
|
4,202
|
|
|
109,028
|
|
|
37,110
|
|
|
8,789
|
|
|
(52,725
|
)
|
|
—
|
|
|
165,759
|
|
|
—
|
|
||||||||||
Corporate
and other
|
(247,191
|
)
|
|
4,564,283
|
|
|
(161,955
|
)
|
|
2,326,707
|
|
|
—
|
|
|
43,996
|
|
|
—
|
|
|
—
|
|
|
244,496
|
|
|
—
|
|
||||||||||
Total segments
|
$
|
3,267,394
|
|
|
$
|
10,112,878
|
|
|
$
|
6,626,525
|
|
|
$
|
3,301,257
|
|
|
$
|
5,007,364
|
|
|
$
|
515,678
|
|
|
$
|
1,808,472
|
|
|
$
|
1,342,213
|
|
|
$
|
3,451,858
|
|
|
$
|
2,321,227
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Global Lifestyle
|
$
|
2,457,044
|
|
|
$
|
151,712
|
|
|
$
|
4,827,696
|
|
|
$
|
259,098
|
|
|
$
|
2,955,443
|
|
|
$
|
126,854
|
|
|
$
|
679,752
|
|
|
$
|
1,021,237
|
|
|
$
|
1,848,522
|
|
|
$
|
566,991
|
|
Global Preneed
|
691,037
|
|
|
5,082,545
|
|
|
258,703
|
|
|
24,138
|
|
|
60,403
|
|
|
249,829
|
|
|
239,651
|
|
|
49,000
|
|
|
63,504
|
|
|
—
|
|
||||||||||
Global Housing
|
134,035
|
|
|
2,089
|
|
|
1,382,668
|
|
|
525,406
|
|
|
2,044,701
|
|
|
92,859
|
|
|
788,549
|
|
|
280,492
|
|
|
1,010,445
|
|
|
1,855,051
|
|
||||||||||
Employee
Benefits |
33,475
|
|
|
32,763
|
|
|
9,331
|
|
|
1,432,045
|
|
|
1,066,754
|
|
|
110,998
|
|
|
730,192
|
|
|
32,836
|
|
|
365,921
|
|
|
—
|
|
||||||||||
Health
|
—
|
|
|
78,723
|
|
|
29,607
|
|
|
552,950
|
|
|
2,223,696
|
|
|
24,487
|
|
|
2,301,241
|
|
|
10,694
|
|
|
516,726
|
|
|
—
|
|
||||||||||
Corporate
and other
|
(164,657
|
)
|
|
4,118,862
|
|
|
(84,285
|
)
|
|
1,103,082
|
|
|
—
|
|
|
21,190
|
|
|
3,150
|
|
|
—
|
|
|
127,285
|
|
|
—
|
|
||||||||||
Total segments
|
$
|
3,150,934
|
|
|
$
|
9,466,694
|
|
|
$
|
6,423,720
|
|
|
$
|
3,896,719
|
|
|
$
|
8,350,997
|
|
|
$
|
626,217
|
|
|
$
|
4,742,535
|
|
|
$
|
1,394,259
|
|
|
$
|
3,932,403
|
|
|
$
|
2,422,042
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Global Lifestyle
|
$
|
2,422,281
|
|
|
$
|
166,451
|
|
|
$
|
4,737,732
|
|
|
$
|
271,030
|
|
|
$
|
3,067,775
|
|
|
$
|
128,978
|
|
|
$
|
777,568
|
|
|
$
|
1,055,590
|
|
|
$
|
1,659,954
|
|
|
$
|
760,878
|
|
Global Preneed
|
610,034
|
|
|
5,041,772
|
|
|
219,956
|
|
|
25,515
|
|
|
61,093
|
|
|
253,662
|
|
|
249,901
|
|
|
43,321
|
|
|
71,193
|
|
|
—
|
|
||||||||||
Global Housing
|
170,973
|
|
|
2,357
|
|
|
1,597,898
|
|
|
525,754
|
|
|
2,506,097
|
|
|
101,908
|
|
|
1,085,339
|
|
|
343,314
|
|
|
961,971
|
|
|
2,369,440
|
|
||||||||||
Employee
Benefits |
25,669
|
|
|
31,788
|
|
|
8,876
|
|
|
1,474,805
|
|
|
1,051,725
|
|
|
117,192
|
|
|
716,892
|
|
|
30,786
|
|
|
368,763
|
|
|
—
|
|
||||||||||
Health
|
19,652
|
|
|
88,411
|
|
|
137,546
|
|
|
391,611
|
|
|
1,945,452
|
|
|
35,369
|
|
|
1,575,633
|
|
|
4,570
|
|
|
491,248
|
|
|
—
|
|
||||||||||
Corporate
and other
|
(290,869
|
)
|
|
4,152,893
|
|
|
(172,333
|
)
|
|
1,009,891
|
|
|
—
|
|
|
19,320
|
|
|
—
|
|
|
—
|
|
|
143,078
|
|
|
—
|
|
||||||||||
Total segments
|
$
|
2,957,740
|
|
|
$
|
9,483,672
|
|
|
$
|
6,529,675
|
|
|
$
|
3,698,606
|
|
|
$
|
8,632,142
|
|
|
$
|
656,429
|
|
|
$
|
4,405,333
|
|
|
$
|
1,477,581
|
|
|
$
|
3,696,207
|
|
|
$
|
3,130,318
|
|
(1)
|
Includes amortization of value of business acquired and underwriting, general and administration expenses.
|
|
Direct amount
|
|
Ceded to
other
Companies
|
|
Assumed
from other
Companies
|
|
Net amount
|
|
Percentage
of amount
assumed
to net
|
|||||||||
Life Insurance in Force
|
$
|
87,831,793
|
|
|
$
|
84,880,220
|
|
|
$
|
1,369,349
|
|
|
$
|
4,320,922
|
|
|
31.7
|
%
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
631,604
|
|
|
$
|
470,194
|
|
|
$
|
13,079
|
|
|
$
|
174,489
|
|
|
7.5
|
%
|
Accident and health insurance
|
1,524,954
|
|
|
1,299,631
|
|
|
66,689
|
|
|
292,012
|
|
|
22.8
|
%
|
||||
Property and liability insurance
|
7,518,265
|
|
|
3,267,591
|
|
|
290,189
|
|
|
4,540,863
|
|
|
6.4
|
%
|
||||
Total earned premiums
|
$
|
9,674,823
|
|
|
$
|
5,037,416
|
|
|
$
|
369,957
|
|
|
$
|
5,007,364
|
|
|
7.4
|
%
|
Benefits:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
719,647
|
|
|
$
|
452,986
|
|
|
$
|
19,554
|
|
|
$
|
286,215
|
|
|
6.8
|
%
|
Accident and health insurance
|
1,519,411
|
|
|
1,485,370
|
|
|
26,079
|
|
|
60,120
|
|
|
43.4
|
%
|
||||
Property and liability insurance
|
3,482,208
|
|
|
2,143,718
|
|
|
123,647
|
|
|
1,462,137
|
|
|
8.5
|
%
|
||||
Total policyholder benefits
|
$
|
5,721,266
|
|
|
$
|
4,082,074
|
|
|
$
|
169,280
|
|
|
$
|
1,808,472
|
|
|
9.4
|
%
|
|
Direct amount
|
|
Ceded to
other
Companies
|
|
Assumed
from other
Companies
|
|
Net amount
|
|
Percentage
of amount
assumed
to net
|
|||||||||
Life Insurance in Force
|
$
|
93,926,136
|
|
|
$
|
26,786,323
|
|
|
$
|
1,397,236
|
|
|
$
|
68,537,049
|
|
|
2.0
|
%
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
664,738
|
|
|
$
|
316,533
|
|
|
$
|
16,788
|
|
|
$
|
364,993
|
|
|
4.6
|
%
|
Accident and health insurance
|
3,677,759
|
|
|
630,083
|
|
|
177,510
|
|
|
3,225,186
|
|
|
5.5
|
%
|
||||
Property and liability insurance
|
7,258,227
|
|
|
2,829,099
|
|
|
331,690
|
|
|
4,760,818
|
|
|
7.0
|
%
|
||||
Total earned premiums
|
$
|
11,600,724
|
|
|
$
|
3,775,715
|
|
|
$
|
525,988
|
|
|
$
|
8,350,997
|
|
|
6.3
|
%
|
Benefits:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
667,984
|
|
|
$
|
295,528
|
|
|
$
|
20,008
|
|
|
$
|
392,464
|
|
|
5.1
|
%
|
Accident and health insurance
|
3,536,448
|
|
|
774,591
|
|
|
153,912
|
|
|
2,915,769
|
|
|
5.3
|
%
|
||||
Property and liability insurance
|
2,757,925
|
|
|
1,460,576
|
|
|
136,953
|
|
|
1,434,302
|
|
|
9.5
|
%
|
||||
Total policyholder benefits
|
$
|
6,962,357
|
|
|
$
|
2,530,695
|
|
|
$
|
310,873
|
|
|
$
|
4,742,535
|
|
|
6.6
|
%
|
|
Direct amount
|
|
Ceded to
other
Companies
|
|
Assumed
from other
Companies
|
|
Net amount
|
|
Percentage
of amount
assumed
to net
|
|||||||||
Life Insurance in Force
|
$
|
97,410,319
|
|
|
$
|
29,365,216
|
|
|
$
|
1,642,259
|
|
|
$
|
69,687,362
|
|
|
2.4
|
%
|
Premiums:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
720,478
|
|
|
$
|
361,860
|
|
|
$
|
27,588
|
|
|
$
|
386,206
|
|
|
7.1
|
%
|
Accident and health insurance
|
3,429,376
|
|
|
629,062
|
|
|
175,768
|
|
|
2,976,082
|
|
|
5.9
|
%
|
||||
Property and liability insurance
|
7,101,095
|
|
|
2,115,541
|
|
|
284,300
|
|
|
5,269,854
|
|
|
5.4
|
%
|
||||
Total earned premiums
|
$
|
11,250,949
|
|
|
$
|
3,106,463
|
|
|
$
|
487,656
|
|
|
$
|
8,632,142
|
|
|
5.6
|
%
|
Benefits:
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance
|
$
|
736,430
|
|
|
$
|
364,064
|
|
|
$
|
23,812
|
|
|
$
|
396,178
|
|
|
6.0
|
%
|
Accident and health insurance
|
3,450,893
|
|
|
1,410,856
|
|
|
153,621
|
|
|
2,193,658
|
|
|
7.0
|
%
|
||||
Property and liability insurance
|
2,759,798
|
|
|
1,097,144
|
|
|
152,843
|
|
|
1,815,497
|
|
|
8.4
|
%
|
||||
Total policyholder benefits
|
$
|
6,947,121
|
|
|
$
|
2,872,064
|
|
|
$
|
330,276
|
|
|
$
|
4,405,333
|
|
|
7.5
|
%
|
|
|
|
Additions
|
|
|
|
|
||||||||||||
|
Balance at
Beginning of
Year
|
|
Charged to
Costs and
Expenses
|
|
Charged
to Other
Accounts
|
|
Deductions
|
|
Balance at
End of
Year
|
||||||||||
2016
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation allowance for foreign NOL deferred tax
carryforward
|
$
|
13,218
|
|
|
$
|
(689
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,529
|
|
Valuation allowance for mortgage loans on real estate
|
2,582
|
|
|
(278
|
)
|
|
—
|
|
|
—
|
|
|
2,304
|
|
|||||
Valuation allowance for uncollectible agents balances
|
13,747
|
|
|
170
|
|
|
(72
|
)
|
|
55
|
|
|
13,790
|
|
|||||
Valuation allowance for uncollectible accounts
|
13,949
|
|
|
4,273
|
|
|
(20
|
)
|
|
2,432
|
|
|
15,770
|
|
|||||
Valuation allowance for reinsurance recoverables
|
10,820
|
|
|
(10,423
|
)
|
|
—
|
|
|
96
|
|
|
301
|
|
|||||
Total
|
$
|
54,316
|
|
|
$
|
(6,947
|
)
|
|
$
|
(92
|
)
|
|
$
|
2,583
|
|
|
$
|
44,694
|
|
2015
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation allowance for foreign NOL deferred tax carryforward
|
$
|
18,164
|
|
|
$
|
(4,946
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,218
|
|
Valuation allowance for mortgage loans on real estate
|
3,399
|
|
|
(816
|
)
|
|
—
|
|
|
1
|
|
|
2,582
|
|
|||||
Valuation allowance for uncollectible agents balances
|
15,698
|
|
|
(206
|
)
|
|
(59
|
)
|
|
1,686
|
|
|
13,747
|
|
|||||
Valuation allowance for uncollectible accounts
|
15,870
|
|
|
6,633
|
|
|
(1,179
|
)
|
|
7,375
|
|
|
13,949
|
|
|||||
Valuation allowance for reinsurance recoverables
|
10,820
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,820
|
|
|||||
Total
|
$
|
63,951
|
|
|
$
|
665
|
|
|
$
|
(1,238
|
)
|
|
$
|
9,062
|
|
|
$
|
54,316
|
|
2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Valuation allowance for foreign NOL deferred tax
carryforward
|
$
|
16,474
|
|
|
$
|
1,690
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,164
|
|
Valuation allowance for mortgage loans on real estate
|
4,482
|
|
|
(1,086
|
)
|
|
3
|
|
|
—
|
|
|
3,399
|
|
|||||
Valuation allowance for uncollectible agents balances
|
19,822
|
|
|
(1,894
|
)
|
|
52
|
|
|
2,282
|
|
|
15,698
|
|
|||||
Valuation allowance for uncollectible accounts
|
16,824
|
|
|
6,229
|
|
|
(655
|
)
|
|
6,528
|
|
|
15,870
|
|
|||||
Valuation allowance for reinsurance recoverables
|
10,820
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,820
|
|
|||||
Total
|
$
|
68,422
|
|
|
$
|
4,939
|
|
|
$
|
(600
|
)
|
|
$
|
8,810
|
|
|
$
|
63,951
|
|
“3.06
|
Profit Sharing Contribution
.
|
(a)
|
Authority to Grant a Profit Sharing Contribution
. Effective as of March 1, 2016, an employer contribution may be made to the Plan which shall be known as a “Profit Sharing Contribution”. Such contribution shall be made at the discretion of the Committee with prior approval from the Executive Committee. The granting of a Profit Sharing Contribution shall not automatically entitle Participants to future Profit Sharing Contributions unless so specified by the Committee under prior authorization from the Executive Committee.
|
(b)
|
2016 Profit Sharing Contribution
. The Account of each Participant who is actively employed by the Company or its Affiliates on December 31, 2016 shall be credited with a special one-time Profit Sharing Contribution equal to 3% of the amount by which such Participant’s Executive Compensation exceeds the Participant’s Eligible Pay for the 2016 Plan Year. This contribution shall be deposited into such Participant’s Account as soon as administratively practicable but in no event later than 45 days after December 31, 2016. For the avoidance of doubt, each Participant who is entitled to receive the Profit Sharing Contribution provided for in this Section 3.06 shall vest in such contribution at the same time as he or she vests in any other 401(k) Benefits received pursuant to Section 3.01 of the Plan. Notwithstanding the foregoing in this Section 3.06, all Participants whose employment ended on or between March 1, 2016 and December 30, 2016 shall be entitled to receive the Profit Sharing Contribution if
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ASSURANT, INC.
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BENEFIT PLANS COMMITTEE
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Date
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12/15/2016
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By
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/s/ Robyn Price Stonehill
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Robyn Price Stonehill
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Chairperson, Assurant, Inc. Benefit Plans Committee
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Executive Vice President and Chief Human Resources Officer
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2016
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2015
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2014
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2013
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2012
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Income before income taxes
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$
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848.6
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$
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201.2
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$
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744.1
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$
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789.7
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$
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757.8
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Fixed charges
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66.5
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65.7
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68.5
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86.8
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70.2
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Income as adjusted
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$
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915.1
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$
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266.9
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$
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812.6
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$
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876.5
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$
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828.0
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Fixed charges:
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Interest expense, including discount
amortization and preferred stock
dividends (1)
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$
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57.6
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$
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55.1
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$
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58.4
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$
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77.7
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$
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60.3
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Portion of rents representative of an
appropriate interest factor
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8.9
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10.6
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10.1
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9.1
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9.9
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Total fixed charges
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$
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66.5
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$
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65.7
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$
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68.5
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$
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86.8
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$
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70.2
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Ratio of consolidated earnings to fixed charges
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13.76
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4.06
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11.86
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10.10
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11.79
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(1)
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Preferred stock issued is recorded as a liability, thus the corresponding dividend is recorded as interest expense.
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i)
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Maximum Debt to Total Capitalization Ratio is 35%
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Consolidated Total Debt
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Debt (1)
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$
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1,067,020
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Letters of Credit Outstanding (2)
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14,026
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Consolidated Total Debt (3)
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$
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1,081,046
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Consolidated Adjusted Net Worth
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Total Stockholders’ Equity (4)
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$
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4,156,484
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Consolidated Adjusted Net Worth (5)
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$
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4,156,484
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Consolidated Capitalization
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Consolidated Total Debt
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$
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1,081,046
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Consolidated Adjusted Net Worth
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4,156,484
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Consolidated Capitalization
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$
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5,237,530
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Debt to Total Capitalization Ratio = Cons. Total Debt / Cons. Capitalization (6)
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20.6
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%
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<
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35.0
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%
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ii)
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Minimum Consolidated Adjusted Net Worth:
is defined as $3,317,000 (The Minimum Consolidated Net Worth at the inception of the Credit Agreement) plus 25% of Consolidated Net Income* for each Fiscal Quarter (beginning with the Fiscal Quarter ending after June 30, 2014) for which Consolidated Net Income is a positive amount plus 25% of any net proceeds received by the Company from any capital contribution to, or issuance of any Capital Stock or Hybrid Securities received after June 30, 2014.
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Consolidated Adjusted Net Worth
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$
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4,156,484
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Minimum Consolidated Adjusted Net Worth
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Minimum Consolidated Adjusted Net Worth at inception of Credit Agreement
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$
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3,317,000
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25% of Consolidated Net Income for each Fiscal Quarter (beginning with the
Fiscal Quarter ending after June 30, 2014) for which Consolidated Net Income
is a positive amount
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225,995
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Cumulative net proceeds from Company Employee Stock Purchase Plan
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4,645
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Total Minimum Consolidated Adjusted Net Worth (compared to Actual)
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$
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4,156,484
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>
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$
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3,547,640
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Subsidiary Name
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State or Country of Organization
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9167-1990 Quebec Inc.
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Canada
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ABI International
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Cayman Islands
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ABIG Holding de Espana, S.L.
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Spain
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AIM 155 Steele Street LLC
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Delaware
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AIM Acquisitions LLC
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Delaware
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AIM Madison Apartments LLC
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Delaware
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AIM Real Estate Co-Investment Fund, L.P.
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Delaware
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AIM Real Estate GP, LLC
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Delaware
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AIM Stonecreek-Parkside LLC
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Delaware
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AIM Tapestry LLC
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Delaware
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AIM Vinings LLC
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Delaware
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AIM West 12th Street LLC
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Delaware
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ALOC Holdings ULC
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Canada
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American Bankers General Agency, Inc.
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Texas
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American Bankers Insurance Company of Florida
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Florida
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American Bankers Insurance Group, Inc.
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Florida
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American Bankers Life Assurance Company of Florida
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Florida
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American Bankers Management Company, Inc.
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Florida
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American Memorial Life Insurance Company
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South Dakota
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American Security Insurance Company
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Delaware
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American Title, Inc.
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Nebraska
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Assurant Appraisals
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Indiana
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Assurant Argentina Compania de Seguros Sociedad Anonima
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Argentina
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Assurant BARC Reinsurance Limited
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Turks & Caicos
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Assurant Captive Insurance Company
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Georgia
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Assurant Chile Compañia de Seguros Generales S.A.
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Chile
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Assurant Co., Ltd
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United Kingdom
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Assurant Commercial Mortgage Depositor, LLC
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Delaware
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Assurant Consulting Company, Limited.
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China
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Assurant Danos Mexico S.A.
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Mexico
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Assurant Deutschland GmbH
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Germany
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Assurant Device Care Limited
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United Kingdom
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Assurant Direct Limited
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United Kingdom
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Assurant Direta Corretora de Seguros Ltda
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Brazil
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Assurant France
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France
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Assurant General Insurance Limited
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United Kingdom
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Assurant Holding Mexico, S. de R.L. de C.V.
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Mexico
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Assurant Holdings France SAS
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France
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Assurant Intermediary Ltd.
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United Kingdom
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Assurant International Division Limited
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Malta
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Assurant Investment Management LLC
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Delaware
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Assurant Italia Agenzia di Assicurazioni s.r.l.
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Italy
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Assurant Japan KK
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Japan
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Assurant Life Limited
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United Kingdom
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Assurant Life of Canada
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Canada
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Assurant New Ventures, Incorporated
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Florida
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Assurant Payment Services, Inc.
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Florida
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Assurant Reinsurance of Turks & Caicos, Ltd.
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Turks & Caicos
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Assurant Seguradora S.A.
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Brazil
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Assurant Service Protection, Inc.
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Oklahoma
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Assurant Services Argentina, S.A.
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Argentina
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Assurant Services Australia Pty Limited
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Australia
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Assurant Services Canada, Inc.
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Canada
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Assurant Services de Chile, SpA
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Chile
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Assurant Services del Peru SAC
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Peru
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Assurant Services Hong Kong Limited
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Hong Kong
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Assurant Services Italia s.r.l.
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Italy
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Assurant Services Korea Limited
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South Korea
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Assurant Services Limited
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Ireland
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Assurant Services of Puerto Rico, Inc.
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Puerto Rico
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Assurant Services, LLC
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Texas
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Assurant Servicios de Mexico, S.A. de CV
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Mexico
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Assurant Servicos Ltda.
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Brazil
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Assurant Solutions Assistance B.V.
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Netherlands
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Assurant Solutions Comercio e Servicos de Equipamentos Electronicos Ltda.
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Brazil
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Assurant Solutions Holding Puerto Rico, Inc.
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Puerto Rico
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Assurant Solutions Spain, S.A.
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Spain
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Assurant Vida Mexico S.A.
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Mexico
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Axios Valuation Solutions, LLC
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Texas
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Broadtech, LLC
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Texas
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Caribbean American Life Assurance Company
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Puerto Rico
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Caribbean American Property Insurance Company
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Puerto Rico
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Coast to Coast Dealer Services Inc. (New York)
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New York
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Collateral Intelligence, LLC
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Delaware
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Consumer Assist Network Association, Inc.
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Delaware
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Cooperatieve Assurant Netherlands U.A.
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Netherlands
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CWI Distribution
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France
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CWI Group
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France
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CWork Financial Management LLC
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Delaware
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CWork Solutions, LP
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Pennsylvania
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Digital Services (UK) Ltd.
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United Kingdom
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eMortgage Logic, LLC
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Texas
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Family Considerations, Inc.
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Georgia
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FamilySide, Inc.
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Canada
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FAS-Nationstar, LLC
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Missouri
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FAS-OWB Utilities, LLC
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Texas
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FAS-Tenant Access Utilities, LLC
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Texas
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Federal Warranty Service Corporation
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Illinois
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Field Asset Services, LLC
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Delaware
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Florida Office Corp.
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Delaware
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GP Legacy Place, Inc.
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Delaware
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Guardian Travel, Inc.
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Florida
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I.Q. Data International, Inc.
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Washington
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Insureco Agency & Insurance Services, Inc.
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California
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Insureco, Inc.
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California
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Interfinancial Inc.
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Georgia
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John Alden Life Insurance Company
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Wisconsin
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Lifestyle Services Group Ltd.
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United Kingdom
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LSG Insurance (Isle of Man Limited)
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Isle of Man
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Mobile Defense, Inc.
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Delaware
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MSDiversified Corp.
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Mississippi
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National Insurance Agency
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Florida
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National Insurance Institute, LLC
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Wisconsin
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Protection Holding Cayman
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Cayman Islands
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Reliable Lloyds Insurance Company
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Texas
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Shipsurance Insurance Service, Inc.
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California
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Signal Financial Management LLC
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Delaware
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Signal GP LLC
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Delaware
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Signal Holdings LLC
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Pennsylvania
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Signal Northwest LLC
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Delaware
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Solutions Cayman
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Cayman Islands
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Solutions Holdings
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Cayman Islands
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STAMS Ltd.
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United Kingdom
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Standard Guaranty Insurance Company
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Delaware
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Sureway, Inc.
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Delaware
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TeleCom Re, Inc.
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Florida
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The Signal LP
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Pennsylvania
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Time Insurance Company
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Wisconsin
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TrackSure Insurance Agency, Inc.
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California
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TS Holdings, Inc.
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Delaware
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Union Security Insurance Company
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Kansas
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Union Security Life Insurance Company of New York
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New York
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United Service Protection Corporation
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Delaware
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United Service Protection, Inc.
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Florida
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Voyager Group, Inc.
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Florida
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Voyager Indemnity Insurance Company
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Georgia
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Voyager Service Warranties, Inc.
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Florida
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Name
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Title
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/s/ Alan B. Colberg
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President, Chief Executive Officer and Director
(Principal Executive Officer)
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Alan Colberg
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/s/ Richard S. Dziadzio
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Executive Vice President, Chief Financial Officer and Treasurer (Principal Financial Officer)
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Richard S. Dziadzio
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/s/ John A. Sondej
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Senior Vice President and Controller
(Principal Accounting Officer)
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John A. Sondej
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/s/ Elaine D. Rosen
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Non-Executive Board Chair and Director
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Elaine D. Rosen
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/s/ Howard L. Carver
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Director
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Howard L. Carver
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/s/ Juan N. Cento
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Director
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Juan N. Cento
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/s/ Elyse Douglas
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Director
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Elyse Douglas
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/s/ Lawrence V. Jackson
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Director
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Lawrence V. Jackson
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/s/ Charles J. Koch
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Director
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Charles J. Koch
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/s/ Jean-Paul L. Montupet
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Director
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Jean-Paul L. Montupet
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/s/ Paul J. Reilly
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Director
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Paul J. Reilly
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/s/ Robert W. Stein
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Director
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Robert W. Stein
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/s/ Alan B. Colberg
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Alan B. Colberg
President and Chief Executive Officer
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/s/ Richard S. Dziadzio
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Richard S. Dziadzio
Executive Vice President, Chief Financial Officer and Treasurer
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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/ Alan B. Colberg
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Alan B. Colberg
President and Chief Executive Officer
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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, Chief Financial Officer and Treasurer
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