x
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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¨
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Delaware
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001-31978
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39-1126612
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
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x
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Accelerated filer
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¨
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Non-accelerated filer
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¨ (Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Item
Number
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Page
Number
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1.
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2.
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3.
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4.
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1.
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1A.
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5.
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6.
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June 30, 2018
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December 31, 2017
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||||
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(in millions except number of shares
and per share amounts)
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||||||
Assets
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||||
Investments:
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|
||||
Fixed maturity securities available for sale, at fair value (amortized cost - $10,777.0 in 2018 and $8,756.5 in 2017)
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$
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11,297.5
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$
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9,662.6
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Equity securities, at fair value (cost - $349.6 in 2018 and $316.3 in 2017)
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385.8
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|
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368.0
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Commercial mortgage loans on real estate, at amortized cost
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720.1
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670.2
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Short-term investments
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343.6
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284.1
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Other investments
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642.2
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568.6
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Total investments
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13,389.2
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11,553.5
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Cash and cash equivalents
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1,253.7
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996.8
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Premiums and accounts receivable, net
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1,512.7
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1,237.3
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Reinsurance recoverables
|
10,978.3
|
|
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9,790.2
|
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Accrued investment income
|
136.1
|
|
|
105.4
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||
Deferred acquisition costs
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3,882.7
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3,484.5
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Property and equipment, at cost less accumulated depreciation
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370.6
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347.6
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Tax receivable
|
54.3
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126.3
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Goodwill
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2,369.2
|
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917.7
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Value of business acquired
|
3,962.5
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24.4
|
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Other intangible assets, net
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664.8
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288.6
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Other assets
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623.7
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387.1
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Assets held in separate accounts
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1,858.3
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1,837.1
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Assets of consolidated investment entities (1)
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1,305.2
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746.5
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Total assets
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$
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42,361.3
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$
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31,843.0
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Liabilities
|
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||||
Future policy benefits and expenses
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$
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10,386.0
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$
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10,397.4
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Unearned premiums
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14,505.0
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|
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7,038.6
|
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Claims and benefits payable
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3,503.1
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|
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3,782.2
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|
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Commissions payable
|
308.1
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|
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365.1
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Reinsurance balances payable
|
324.1
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|
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145.3
|
|
||
Funds held under reinsurance
|
347.1
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|
|
179.8
|
|
||
Deferred gains on disposal of businesses
|
94.7
|
|
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128.1
|
|
||
Accounts payable and other liabilities
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2,610.7
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2,046.3
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|
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Debt
|
2,004.8
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1,068.2
|
|
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Liabilities related to separate accounts
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1,858.3
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1,837.1
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|
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Liabilities of consolidated investment entities (1)
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1,086.5
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573.4
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Total liabilities
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37,028.4
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27,561.5
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Commitments and contingencies (Note 18)
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Stockholders’ equity
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||||
6.50% Series D mandatory convertible preferred stock, $1.00 par value, 2,875,000 shares authorized, 2,875,000 issued and outstanding at June 30, 2018
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2.9
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—
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Common stock, par value $0.01 per share, 800,000,000 shares authorized, 161,069,104 and 150,392,604 shares issued and 63,094,312 and 52,417,812 shares outstanding at June 30, 2018 and December 31, 2017, respectively
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1.6
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1.5
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Additional paid-in capital
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4,459.7
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3,197.9
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Retained earnings
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5,846.3
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5,697.3
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Accumulated other comprehensive (loss) income
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(137.9
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)
|
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234.0
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Treasury stock, at cost; 97,974,792 shares at June 30, 2018 and December 31, 2017
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(4,860.1
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)
|
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(4,860.1
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)
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Total Assurant, Inc. stockholders’ equity
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5,312.5
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4,270.6
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Non-controlling interest
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20.4
|
|
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10.9
|
|
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Total equity
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5,332.9
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4,281.5
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Total liabilities and equity
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$
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42,361.3
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$
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31,843.0
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(1)
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The following table presents information on assets and liabilities related to consolidated investment entities as of June 30, 2018 and December 31, 2017.
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June 30, 2018
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December 31, 2017
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||||
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(in millions)
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||||||
Assets
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Cash and cash equivalents
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$
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35.0
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$
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69.8
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Investments, at fair value
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1,200.7
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655.0
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Other receivables
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69.5
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21.7
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Total assets
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$
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1,305.2
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$
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746.5
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Liabilities
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Collateralized loan obligation notes, at fair value
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941.2
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450.7
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Other liabilities
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145.3
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122.7
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Total liabilities
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$
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1,086.5
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$
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573.4
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||
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2018
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2017
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2018
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2017
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(in millions except number of shares and per share amounts)
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Revenues
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Net earned premiums
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$
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1,338.3
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$
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1,115.3
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$
|
2,463.2
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$
|
2,165.6
|
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Fees and other income
|
354.2
|
|
|
326.9
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|
|
718.7
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667.1
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|
||||
Net investment income
|
135.6
|
|
|
121.7
|
|
|
265.8
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|
|
242.3
|
|
||||
Net realized (losses) gains on investments, excluding other-than-temporary impairment losses
|
(11.4
|
)
|
|
13.3
|
|
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(10.9
|
)
|
|
17.1
|
|
||||
Other-than-temporary impairment losses recognized in earnings
|
—
|
|
|
(0.1
|
)
|
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—
|
|
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(0.5
|
)
|
||||
Amortization of deferred gains on disposal of businesses
|
15.0
|
|
|
23.4
|
|
|
33.5
|
|
|
60.4
|
|
||||
Total revenues
|
1,831.7
|
|
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1,600.5
|
|
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3,470.3
|
|
|
3,152.0
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|
||||
Benefits, losses and expenses
|
|
|
|
|
|
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|
||||||||
Policyholder benefits
|
490.6
|
|
|
416.4
|
|
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905.2
|
|
|
774.4
|
|
||||
Amortization of deferred acquisition costs and value of business acquired
|
463.2
|
|
|
346.7
|
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809.6
|
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661.2
|
|
||||
Underwriting, general and administrative expenses
|
773.6
|
|
|
646.3
|
|
|
1,493.2
|
|
|
1,297.6
|
|
||||
Interest expense
|
26.0
|
|
|
12.4
|
|
|
47.5
|
|
|
25.0
|
|
||||
Total benefits, losses and expenses
|
1,753.4
|
|
|
1,421.8
|
|
|
3,255.5
|
|
|
2,758.2
|
|
||||
Income before provision for income taxes
|
78.3
|
|
|
178.7
|
|
|
214.8
|
|
|
393.8
|
|
||||
Provision for income taxes
|
11.3
|
|
|
58.5
|
|
|
41.8
|
|
|
129.8
|
|
||||
Net income
|
67.0
|
|
|
120.2
|
|
|
173.0
|
|
|
264.0
|
|
||||
Less: Preferred stock dividends
|
(4.8
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
||||
Net income attributable to common stockholders
|
$
|
62.2
|
|
|
$
|
120.2
|
|
|
$
|
168.2
|
|
|
$
|
264.0
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings Per Share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
1.09
|
|
|
$
|
2.18
|
|
|
$
|
3.05
|
|
|
$
|
4.74
|
|
Diluted
|
$
|
1.09
|
|
|
$
|
2.16
|
|
|
$
|
3.02
|
|
|
$
|
4.71
|
|
Dividends per share of common stock
|
$
|
0.56
|
|
|
$
|
0.53
|
|
|
$
|
1.12
|
|
|
$
|
1.06
|
|
Dividends per share of preferred stock
|
$
|
1.68
|
|
|
$
|
—
|
|
|
$
|
1.68
|
|
|
$
|
—
|
|
Share Data
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding used in basic per share calculations
|
57,060,313
|
|
|
55,230,367
|
|
|
55,125,584
|
|
|
55,713,172
|
|
||||
Plus: Dilutive securities
|
204,095
|
|
|
279,531
|
|
|
2,147,844
|
|
|
361,980
|
|
||||
Weighted average shares used in diluted per share calculations
|
57,264,408
|
|
|
55,509,898
|
|
|
57,273,428
|
|
|
56,075,152
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
(in millions)
|
||||||||||||||
Net income
|
$
|
67.0
|
|
|
$
|
120.2
|
|
|
$
|
173.0
|
|
|
$
|
264.0
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
||||||||
Change in unrealized gains on securities, net of taxes of $28.2, $(40.7), $76.0 and $(57.7), respectively
|
(105.9
|
)
|
|
73.9
|
|
|
(281.1
|
)
|
|
106.3
|
|
||||
Change in unrealized gains on derivative transactions, net of taxes of $0.2 and $(5.4) for the three and six months ended June 30, 2018, respectively
|
(0.2
|
)
|
|
—
|
|
|
20.9
|
|
|
—
|
|
||||
Change in other-than-temporary impairment losses, net of taxes of $0.4, $0.8, $1.3 and $1.0, respectively
|
(1.4
|
)
|
|
(1.5
|
)
|
|
(4.9
|
)
|
|
(1.8
|
)
|
||||
Change in foreign currency translation, net of taxes of $1.0, $(0.9), $1.5 and $(1.3), respectively
|
(83.1
|
)
|
|
15.7
|
|
|
(73.9
|
)
|
|
37.5
|
|
||||
Amortization of pension and postretirement unrecognized net periodic benefit cost, net of taxes of $(0.3), $(0.3), $(0.3) and $(0.2), respectively
|
1.0
|
|
|
0.5
|
|
|
1.0
|
|
|
0.3
|
|
||||
Total other comprehensive (loss) income
|
(189.6
|
)
|
|
88.6
|
|
|
(338.0
|
)
|
|
142.3
|
|
||||
Total comprehensive (loss) income
|
$
|
(122.6
|
)
|
|
$
|
208.8
|
|
|
$
|
(165.0
|
)
|
|
$
|
406.3
|
|
|
|
|
|
Common
Stock
|
|
Preferred
Stock |
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Treasury
Stock
|
|
Non-controlling Interest
|
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Balance at December 31, 2017
|
$
|
1.5
|
|
|
$
|
—
|
|
|
$
|
3,197.9
|
|
|
$
|
5,697.3
|
|
|
$
|
234.0
|
|
|
$
|
(4,860.1
|
)
|
|
$
|
10.9
|
|
|
$
|
4,281.5
|
|
Cumulative effect of
change in accounting
principles, net of taxes (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
41.4
|
|
|
(33.9
|
)
|
|
—
|
|
|
—
|
|
|
7.5
|
|
||||||||
Stock plan exercises
|
—
|
|
|
—
|
|
|
(8.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.8
|
)
|
||||||||
Stock plan compensation
|
—
|
|
|
—
|
|
|
21.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21.7
|
|
||||||||
Common stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(60.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(60.6
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
173.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
173.0
|
|
||||||||
Issuance of preferred
stock
|
—
|
|
|
2.9
|
|
|
273.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
276.4
|
|
||||||||
Issuance of common stock
|
0.1
|
|
|
—
|
|
|
975.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
975.5
|
|
||||||||
Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
||||||||
Change in equity of non-controlling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
|
9.5
|
|
||||||||
Other comprehensive
income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(338.0
|
)
|
|
—
|
|
|
—
|
|
|
(338.0
|
)
|
||||||||
Balance, June 30, 2018
|
$
|
1.6
|
|
|
$
|
2.9
|
|
|
$
|
4,459.7
|
|
|
$
|
5,846.3
|
|
|
$
|
(137.9
|
)
|
|
$
|
(4,860.1
|
)
|
|
$
|
20.4
|
|
|
$
|
5,332.9
|
|
(1)
|
Amounts relate to 1) the requirement to recognize the fair value changes of equity securities directly within income (resulting in a reclassification of unrealized gains as of December 31, 2017 between accumulated other comprehensive income ("AOCI") and retained earnings) and 2) the impact of adoption of the new revenue recognition standard for revenues from service contracts and sales of products. See Note 3 for additional information.
|
|
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
|
(in millions)
|
||||||
Net cash provided by (used in) operating activities (1)
|
$
|
172.3
|
|
|
$
|
(0.3
|
)
|
Investing activities
|
|
|
|
||||
Sales of:
|
|
|
|
||||
Fixed maturity securities available for sale
|
1,465.8
|
|
|
1,653.4
|
|
||
Equity securities
|
57.2
|
|
|
43.8
|
|
||
Other invested assets
|
35.6
|
|
|
35.5
|
|
||
Maturities, calls, prepayments, and scheduled redemption of:
|
|
|
|
||||
Fixed maturity securities available for sale
|
377.1
|
|
|
448.2
|
|
||
Commercial mortgage loans on real estate
|
78.3
|
|
|
69.0
|
|
||
Purchases of:
|
|
|
|
||||
Fixed maturity securities available for sale
|
(1,646.8
|
)
|
|
(1,880.8
|
)
|
||
Equity securities available for sale
|
(39.4
|
)
|
|
(14.7
|
)
|
||
Commercial mortgage loans on real estate
|
(131.6
|
)
|
|
(69.0
|
)
|
||
Other invested assets
|
(19.7
|
)
|
|
(157.2
|
)
|
||
Property and equipment and other
|
(38.1
|
)
|
|
(31.1
|
)
|
||
Subsidiaries, net of cash transferred (2)
|
(1,213.5
|
)
|
|
(127.4
|
)
|
||
Consolidated investment entities (3):
|
|
|
|
||||
Purchases of investments
|
(828.3
|
)
|
|
—
|
|
||
Sale of investments
|
294.8
|
|
|
—
|
|
||
Change in short-term investments
|
94.9
|
|
|
34.8
|
|
||
Other
|
(1.1
|
)
|
|
(0.8
|
)
|
||
Net cash (used in) provided by investing activities
|
(1,514.8
|
)
|
|
3.7
|
|
||
Financing activities
|
|
|
|
||||
Issuance of mandatory convertible preferred stock, net of issuance costs (4)
|
276.4
|
|
|
—
|
|
||
Issuance of debt, net of issuance costs (4)
|
1,286.1
|
|
|
69.0
|
|
||
Repayment of debt (4)
|
(350.0
|
)
|
|
—
|
|
||
Issuance of collateralized loan obligation notes
|
404.9
|
|
|
—
|
|
||
Issuance of debt for consolidated investment entities (3)
|
385.4
|
|
|
—
|
|
||
Repayment of debt for consolidated investment entities
|
(296.3
|
)
|
|
—
|
|
||
Acquisition of common stock
|
(6.9
|
)
|
|
(218.6
|
)
|
||
Common stock dividends paid
|
(60.6
|
)
|
|
(60.0
|
)
|
||
Preferred stock dividends paid
|
(4.8
|
)
|
|
—
|
|
||
Non-controlling interest
|
7.7
|
|
|
—
|
|
||
Withholding on stock based compensation
|
6.1
|
|
|
17.3
|
|
||
Other
|
(3.5
|
)
|
|
—
|
|
||
Net cash provided by (used in) financing activities
|
1,644.5
|
|
|
(192.3
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(22.8
|
)
|
|
5.1
|
|
||
Cash included in business classified as held for sale
|
(22.3
|
)
|
|
—
|
|
||
Change in cash and cash equivalents
|
256.9
|
|
|
(183.8
|
)
|
||
Cash and cash equivalents at beginning of period
|
996.8
|
|
|
1,032.0
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,253.7
|
|
|
$
|
848.2
|
|
(1)
|
The increase in net cash from operating activities for the six months ended June 30, 2018 as compared to the comparable 2017 period was primarily due to the absence of an $85.0 million payment made in 2017 related to the lender-placed market conduct examination settlement agreements. Also contributing was an increase of sales in our Connected Living business, lower inventory purchases in our mobile business and $26.7 million increase in cash from the settlement of a series of derivative transactions that we entered into in 2017 to hedge interest rate risk related to the anticipated borrowings
|
|
|
|
(2)
|
Amounts for the six months ended June 30, 2018 primarily consist of $1.49 billion of cash used to fund a portion of the total purchase of the TWG acquisition, inclusive of the $595.9 million repayment of pre-existing TWG debt at the Acquisition Date (such debt was not legally assumed by Assurant), net of $277.3 million in TWG cash acquired. The remaining consideration for the TWG acquisition was funded by the issuance of 10,399,862 common shares. Refer to Note 4 - Acquisitions, for additional information.
|
(3)
|
Relates to cash flows from our variable interest entities. Refer to Note 8 - Variable Interest Entities, for further information.
|
(4)
|
Refer to Note 12 - Debt, for additional information.
|
|
|
|
|
|
|
|
|
|
Common stock shares issued to TWG equityholders
|
|
10,399,862
|
|
|
Volume weighted average common share price of Assurant, Inc. on May 31, 2018
|
|
$
|
93.80
|
|
Share issuance consideration
|
|
$
|
975.5
|
|
Aggregate cash consideration
|
|
894.9
|
|
|
Repayment of pre-existing TWG debt
|
|
595.9
|
|
|
Total acquisition consideration
|
|
$
|
2,466.3
|
|
|
|
|
|
|
|
|
June 1, 2018 to June 30, 2018
|
||||||||||
|
Global Lifestyle
|
|
Corporate and Other (1)
|
|
Total
|
||||||
Total revenues
|
$
|
211.9
|
|
|
$
|
(1.6
|
)
|
|
$
|
210.3
|
|
Net income
|
$
|
9.4
|
|
|
$
|
(0.1
|
)
|
|
$
|
9.3
|
|
(1)
|
The TWG operating results allocated to the Corporate and other segment consist of pre-tax integration expenses and net realized losses on investments, as offset by income tax benefits, which includes a $5.7 million tax structuring benefit. Refer to Note 19 - Income Taxes, for further information on the income tax benefit.
|
|
Six Months Ended
June 30, |
||||||
|
2018
|
|
2017
|
||||
Total revenues
|
$
|
4,519.1
|
|
|
$
|
4,197.7
|
|
Net income
|
$
|
244.0
|
|
|
$
|
282.5
|
|
Basic earnings per share
|
$
|
3.68
|
|
|
$
|
4.13
|
|
Diluted earnings per share
|
$
|
3.64
|
|
|
$
|
4.07
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
Total Corporate and Other
|
|
|
||||||||||||||||||
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Corporate
and
Other
|
|
Health
|
|
Total
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net earned premiums
|
$
|
449.7
|
|
|
$
|
874.3
|
|
|
$
|
14.2
|
|
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
1,338.3
|
|
Fees and other income
|
92.8
|
|
|
227.9
|
|
|
32.7
|
|
|
0.6
|
|
|
0.2
|
|
|
0.8
|
|
|
354.2
|
|
|||||||
Net investment income
|
15.9
|
|
|
36.6
|
|
|
67.9
|
|
|
14.6
|
|
|
0.6
|
|
|
15.2
|
|
|
135.6
|
|
|||||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.4
|
)
|
|
—
|
|
|
(11.4
|
)
|
|
(11.4
|
)
|
|||||||
Amortization of deferred gains on disposal of businesses (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
15.0
|
|
|
—
|
|
|
15.0
|
|
|
15.0
|
|
|||||||
Total revenues
|
558.4
|
|
|
1,138.8
|
|
|
114.8
|
|
|
18.8
|
|
|
0.9
|
|
|
19.7
|
|
|
1,831.7
|
|
|||||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policyholder benefits (2)
|
187.2
|
|
|
239.3
|
|
|
65.0
|
|
|
—
|
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|
490.6
|
|
|||||||
Amortization of deferred
acquisition costs and value of
business acquired
|
50.4
|
|
|
395.6
|
|
|
17.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
463.2
|
|
|||||||
Underwriting, general and
administrative expenses
|
229.3
|
|
|
419.6
|
|
|
13.8
|
|
|
109.4
|
|
|
1.5
|
|
|
110.9
|
|
|
773.6
|
|
|||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
26.0
|
|
|
—
|
|
|
26.0
|
|
|
26.0
|
|
|||||||
Total benefits, losses and
expenses
|
466.9
|
|
|
1,054.5
|
|
|
96.0
|
|
|
135.4
|
|
|
0.6
|
|
|
136.0
|
|
|
1,753.4
|
|
|||||||
Segment income before
provision for income tax
|
91.5
|
|
|
84.3
|
|
|
18.8
|
|
|
(116.6
|
)
|
|
0.3
|
|
|
(116.3
|
)
|
|
78.3
|
|
|||||||
Provision for income taxes
|
18.9
|
|
|
16.2
|
|
|
4.1
|
|
|
(28.0
|
)
|
|
0.1
|
|
|
(27.9
|
)
|
|
11.3
|
|
|||||||
Segment income after tax
|
72.6
|
|
|
68.1
|
|
|
14.7
|
|
|
(88.6
|
)
|
|
0.2
|
|
|
(88.4
|
)
|
|
67.0
|
|
|||||||
Less: Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
(4.8
|
)
|
|||||||
Net income attributable to
common stockholders
|
$
|
72.6
|
|
|
$
|
68.1
|
|
|
$
|
14.7
|
|
|
$
|
(93.4
|
)
|
|
$
|
0.2
|
|
|
$
|
(93.2
|
)
|
|
$
|
62.2
|
|
|
As of June 30, 2018
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Segment assets:
|
$
|
3,930.1
|
|
|
$
|
20,561.5
|
|
|
$
|
6,897.3
|
|
|
$
|
10,911.2
|
|
|
$
|
61.2
|
|
|
$
|
10,972.4
|
|
|
$
|
42,361.3
|
|
|
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
Total Corporate and Other
|
|
|
||||||||||||||||||
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Corporate
and
Other
|
|
Health
|
|
Total
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net earned premiums
|
$
|
442.4
|
|
|
$
|
656.0
|
|
|
$
|
15.2
|
|
|
$
|
—
|
|
|
$
|
1.7
|
|
|
$
|
1.7
|
|
|
$
|
1,115.3
|
|
Fees and other income
|
107.8
|
|
|
180.0
|
|
|
31.1
|
|
|
6.9
|
|
|
1.1
|
|
|
8.0
|
|
|
326.9
|
|
|||||||
Net investment income
|
16.8
|
|
|
26.4
|
|
|
65.0
|
|
|
9.8
|
|
|
3.7
|
|
|
13.5
|
|
|
121.7
|
|
|||||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
13.2
|
|
|
—
|
|
|
13.2
|
|
|
13.2
|
|
|||||||
Amortization of deferred gains on disposal of businesses (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
23.4
|
|
|
—
|
|
|
23.4
|
|
|
23.4
|
|
|||||||
Total revenues
|
567.0
|
|
|
862.4
|
|
|
111.3
|
|
|
53.3
|
|
|
6.5
|
|
|
59.8
|
|
|
1,600.5
|
|
|||||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policyholder benefits (2)
|
188.2
|
|
|
178.1
|
|
|
61.9
|
|
|
—
|
|
|
(11.8
|
)
|
|
(11.8
|
)
|
|
416.4
|
|
|||||||
Amortization of deferred
acquisition costs and value of
business acquired
|
46.8
|
|
|
283.6
|
|
|
16.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
346.7
|
|
|||||||
Underwriting, general and
administrative expenses
|
247.5
|
|
|
340.6
|
|
|
14.3
|
|
|
29.9
|
|
|
14.0
|
|
|
43.9
|
|
|
646.3
|
|
|||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
12.4
|
|
|
—
|
|
|
12.4
|
|
|
12.4
|
|
|||||||
Total benefits, losses and
expenses
|
482.5
|
|
|
802.3
|
|
|
92.5
|
|
|
42.3
|
|
|
2.2
|
|
|
44.5
|
|
|
1,421.8
|
|
|||||||
Segment income before
provision for income tax
|
84.5
|
|
|
60.1
|
|
|
18.8
|
|
|
11.0
|
|
|
4.3
|
|
|
15.3
|
|
|
178.7
|
|
|||||||
Provision for income taxes
|
28.3
|
|
|
19.9
|
|
|
6.0
|
|
|
3.5
|
|
|
0.8
|
|
|
4.3
|
|
|
58.5
|
|
|||||||
Segment income after tax
|
$
|
56.2
|
|
|
$
|
40.2
|
|
|
$
|
12.8
|
|
|
$
|
7.5
|
|
|
$
|
3.5
|
|
|
$
|
11.0
|
|
|
$
|
120.2
|
|
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
Total Corporate and Other
|
|
|
||||||||||||||||||
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Corporate
and
Other
|
|
Health
|
|
Total
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net earned premiums
|
$
|
886.1
|
|
|
$
|
1,547.9
|
|
|
$
|
28.8
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
0.4
|
|
|
$
|
2,463.2
|
|
Fees and other income
|
179.5
|
|
|
472.8
|
|
|
64.3
|
|
|
1.8
|
|
|
0.3
|
|
|
2.1
|
|
|
718.7
|
|
|||||||
Net investment income
|
36.1
|
|
|
68.7
|
|
|
133.7
|
|
|
25.6
|
|
|
1.7
|
|
|
27.3
|
|
|
265.8
|
|
|||||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.9
|
)
|
|
—
|
|
|
(10.9
|
)
|
|
(10.9
|
)
|
|||||||
Amortization of deferred gains on disposal of businesses (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
33.5
|
|
|
—
|
|
|
33.5
|
|
|
33.5
|
|
|||||||
Total revenues
|
1,101.7
|
|
|
2,089.4
|
|
|
226.8
|
|
|
50.0
|
|
|
2.4
|
|
|
52.4
|
|
|
3,470.3
|
|
|||||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policyholder benefits (2)
|
356.3
|
|
|
420.9
|
|
|
131.7
|
|
|
—
|
|
|
(3.7
|
)
|
|
(3.7
|
)
|
|
905.2
|
|
|||||||
Amortization of deferred
acquisition costs and value of
business acquired
|
100.0
|
|
|
675.9
|
|
|
33.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
809.6
|
|
|||||||
Underwriting, general and
administrative expenses
|
464.2
|
|
|
835.4
|
|
|
30.0
|
|
|
160.4
|
|
|
3.2
|
|
|
163.6
|
|
|
1,493.2
|
|
|||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
47.5
|
|
|
—
|
|
|
47.5
|
|
|
47.5
|
|
|||||||
Total benefits, losses and
expenses
|
920.5
|
|
|
1,932.2
|
|
|
195.4
|
|
|
207.9
|
|
|
(0.5
|
)
|
|
207.4
|
|
|
3,255.5
|
|
|||||||
Segment income before
provision for income tax
|
181.2
|
|
|
157.2
|
|
|
31.4
|
|
|
(157.9
|
)
|
|
2.9
|
|
|
(155.0
|
)
|
|
214.8
|
|
|||||||
Provision for income taxes
|
37.4
|
|
|
33.3
|
|
|
6.9
|
|
|
(36.5
|
)
|
|
0.7
|
|
|
(35.8
|
)
|
|
41.8
|
|
|||||||
Segment income after tax
|
143.8
|
|
|
123.9
|
|
|
24.5
|
|
|
(121.4
|
)
|
|
2.2
|
|
|
(119.2
|
)
|
|
173.0
|
|
|||||||
Less: Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
(4.8
|
)
|
|||||||
Net income attributable to
common stockholders
|
$
|
143.8
|
|
|
$
|
123.9
|
|
|
$
|
24.5
|
|
|
$
|
(126.2
|
)
|
|
$
|
2.2
|
|
|
$
|
(124.0
|
)
|
|
$
|
168.2
|
|
|
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
Total Corporate and Other
|
|
|
||||||||||||||||||
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Corporate
and
Other
|
|
Health
|
|
Total
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net earned premiums
|
$
|
878.8
|
|
|
$
|
1,251.8
|
|
|
$
|
29.8
|
|
|
$
|
—
|
|
|
$
|
5.2
|
|
|
$
|
5.2
|
|
|
$
|
2,165.6
|
|
Fees and other income
|
203.1
|
|
|
389.1
|
|
|
60.7
|
|
|
11.8
|
|
|
2.4
|
|
|
14.2
|
|
|
667.1
|
|
|||||||
Net investment income
|
36.0
|
|
|
52.9
|
|
|
129.2
|
|
|
19.4
|
|
|
4.8
|
|
|
24.2
|
|
|
242.3
|
|
|||||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
16.6
|
|
|
—
|
|
|
16.6
|
|
|
16.6
|
|
|||||||
Amortization of deferred gains on disposal of businesses (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
60.4
|
|
|
—
|
|
|
60.4
|
|
|
60.4
|
|
|||||||
Total revenues
|
1,117.9
|
|
|
1,693.8
|
|
|
219.7
|
|
|
108.2
|
|
|
12.4
|
|
|
120.6
|
|
|
3,152.0
|
|
|||||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Policyholder benefits (2)
|
351.5
|
|
|
326.7
|
|
|
128.1
|
|
|
—
|
|
|
(31.9
|
)
|
|
(31.9
|
)
|
|
774.4
|
|
|||||||
Amortization of deferred
acquisition costs and value of
business acquired
|
97.7
|
|
|
534.6
|
|
|
28.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
661.2
|
|
|||||||
Underwriting, general and
administrative expenses |
488.2
|
|
|
695.3
|
|
|
29.2
|
|
|
57.5
|
|
|
27.4
|
|
|
84.9
|
|
|
1,297.6
|
|
|||||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
25.0
|
|
|
—
|
|
|
25.0
|
|
|
25.0
|
|
|||||||
Total benefits, losses and
expenses
|
937.4
|
|
|
1,556.6
|
|
|
186.2
|
|
|
82.5
|
|
|
(4.5
|
)
|
|
78.0
|
|
|
2,758.2
|
|
|||||||
Segment income before
provision for income tax
|
180.5
|
|
|
137.2
|
|
|
33.5
|
|
|
25.7
|
|
|
16.9
|
|
|
42.6
|
|
|
393.8
|
|
|||||||
Provision for income taxes
|
62.4
|
|
|
44.6
|
|
|
10.8
|
|
|
6.5
|
|
|
5.5
|
|
|
12.0
|
|
|
129.8
|
|
|||||||
Segment income after tax
|
$
|
118.1
|
|
|
$
|
92.6
|
|
|
$
|
22.7
|
|
|
$
|
19.2
|
|
|
$
|
11.4
|
|
|
$
|
30.6
|
|
|
$
|
264.0
|
|
(1)
|
The three months ended June 30, 2018 and 2017 include $12.7 million and $20.6 million, respectively, and the six months ended June 30, 2018 and 2017 include $29.0 million and $54.8 million, respectively, related to the amortization of deferred gains related to the 2016 sale of AEB. The remaining AEB unamortized deferred gain as of June 30, 2018 was $34.7 million.
|
(2)
|
The presentation of Assurant Health policyholder benefits includes the impact of the total current period net utilization of premium deficiency reserves for claim costs and claim adjustment expenses included in policyholder benefits, as well as maintenance costs, which are included within underwriting, general and administrative expenses. For the three months ended June 30, 2018 and 2017, the premium deficiency reserve liability decreased $0.7 million and $9.2 million, respectively, through an offset to policyholder benefit expense. For the six months ended June 30, 2018 and 2017, the premium deficiency reserve liability decreased $0.8 million and $21.9 million, respectively, through an offset to policyholder benefit expense. In addition, there was favorable claims development experienced through June 30, 2018, in excess of actual benefit expense, which contributed to the credit balance within policyholder benefits expenses.
|
|
|
|
|
|
|
|
June 30, 2018
|
||||||||||||||||||
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
OTTI in
AOCI
(a)
|
||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government
agencies and authorities
|
$
|
184.1
|
|
|
$
|
2.6
|
|
|
$
|
(2.1
|
)
|
|
$
|
184.6
|
|
|
$
|
—
|
|
States, municipalities and political
subdivisions
|
461.6
|
|
|
17.9
|
|
|
(1.1
|
)
|
|
478.4
|
|
|
—
|
|
|||||
Foreign governments
|
858.4
|
|
|
62.8
|
|
|
(1.6
|
)
|
|
919.6
|
|
|
—
|
|
|||||
Asset-backed
|
494.7
|
|
|
1.2
|
|
|
(0.7
|
)
|
|
495.2
|
|
|
—
|
|
|||||
Commercial mortgage-backed
|
256.4
|
|
|
0.3
|
|
|
(2.8
|
)
|
|
253.9
|
|
|
—
|
|
|||||
Residential mortgage-backed
|
1,241.4
|
|
|
16.8
|
|
|
(21.4
|
)
|
|
1,236.8
|
|
|
5.6
|
|
|||||
U.S. corporate
|
5,198.1
|
|
|
365.8
|
|
|
(43.7
|
)
|
|
5,520.2
|
|
|
15.8
|
|
|||||
Foreign corporate
|
2,082.3
|
|
|
138.4
|
|
|
(11.9
|
)
|
|
2,208.8
|
|
|
—
|
|
|||||
Total fixed maturity securities
|
$
|
10,777.0
|
|
|
$
|
605.8
|
|
|
$
|
(85.3
|
)
|
|
$
|
11,297.5
|
|
|
$
|
21.4
|
|
|
|||||||||||||||||||
|
December 31, 2017
|
||||||||||||||||||
|
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
|
$
|
180.6
|
|
|
$
|
3.2
|
|
|
$
|
(1.2
|
)
|
|
$
|
182.6
|
|
|
$
|
—
|
|
States, municipalities and political
subdivisions
|
302.3
|
|
|
24.0
|
|
|
(0.1
|
)
|
|
326.2
|
|
|
—
|
|
|||||
Foreign governments
|
524.8
|
|
|
72.3
|
|
|
(0.3
|
)
|
|
596.8
|
|
|
—
|
|
|||||
Asset-backed
|
188.4
|
|
|
1.9
|
|
|
(0.1
|
)
|
|
190.2
|
|
|
1.0
|
|
|||||
Commercial mortgage-backed
|
38.6
|
|
|
0.2
|
|
|
(0.7
|
)
|
|
38.1
|
|
|
—
|
|
|||||
Residential mortgage-backed
|
1,084.2
|
|
|
32.5
|
|
|
(7.3
|
)
|
|
1,109.4
|
|
|
9.2
|
|
|||||
U.S. corporate
|
4,774.2
|
|
|
602.1
|
|
|
(5.0
|
)
|
|
5,371.3
|
|
|
17.4
|
|
|||||
Foreign corporate
|
1,663.4
|
|
|
188.6
|
|
|
(4.0
|
)
|
|
1,848.0
|
|
|
—
|
|
|||||
Total fixed maturity securities
|
$
|
8,756.5
|
|
|
$
|
924.8
|
|
|
$
|
(18.7
|
)
|
|
$
|
9,662.6
|
|
|
$
|
27.6
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stocks
|
$
|
9.3
|
|
|
$
|
8.4
|
|
|
$
|
—
|
|
|
$
|
17.7
|
|
|
$
|
—
|
|
Non-redeemable preferred stocks
|
307.0
|
|
|
43.8
|
|
|
(0.5
|
)
|
|
350.3
|
|
|
—
|
|
|||||
Total equity securities
|
$
|
316.3
|
|
|
$
|
52.2
|
|
|
$
|
(0.5
|
)
|
|
$
|
368.0
|
|
|
$
|
—
|
|
(a)
|
Represents the amount of OTTI recognized in AOCI. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.
|
|
|
|
|
Cost or
Amortized
Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
320.5
|
|
|
$
|
322.1
|
|
Due after one year through five years
|
2,276.5
|
|
|
2,294.7
|
|
||
Due after five years through ten years
|
2,314.2
|
|
|
2,338.8
|
|
||
Due after ten years
|
3,873.3
|
|
|
4,356.0
|
|
||
Total
|
8,784.5
|
|
|
9,311.6
|
|
||
Asset-backed
|
494.7
|
|
|
495.2
|
|
||
Commercial mortgage-backed
|
256.4
|
|
|
253.9
|
|
||
Residential mortgage-backed
|
1,241.4
|
|
|
1,236.8
|
|
||
Total
|
$
|
10,777.0
|
|
|
$
|
11,297.5
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net realized gains (losses) on investments:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
$
|
(7.6
|
)
|
|
$
|
11.9
|
|
|
$
|
(10.2
|
)
|
|
$
|
14.5
|
|
Equity securities (1)
|
(5.9
|
)
|
|
1.5
|
|
|
(3.7
|
)
|
|
3.8
|
|
||||
Other investments
|
1.2
|
|
|
(0.1
|
)
|
|
2.5
|
|
|
(1.2
|
)
|
||||
Consolidated investment entities (2)
|
0.9
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Total net realized gains (losses) on investments
|
(11.4
|
)
|
|
13.3
|
|
|
(10.9
|
)
|
|
17.1
|
|
||||
Net realized losses related to other-than-temporary
impairments:
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
||||
Other investments
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
||||
Total net realized losses related to other-than-
temporary impairments
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.5
|
)
|
||||
Total net realized gains (losses)
|
$
|
(11.4
|
)
|
|
$
|
13.2
|
|
|
$
|
(10.9
|
)
|
|
$
|
16.6
|
|
(1)
|
Six months ended June 30, 2018 includes a $7.8 million gain on one equity investment holding accounted for under the measurement alternative based on an observable market event where the implied value increased based on a new investment. Equity investments accounted for under the measurement alternative are included within Other investments on the consolidated balance sheet.
|
(2)
|
Consists of net realized losses from the change in fair value of the Company's direct investment in collateralized loan obligations ("CLOs"). Refer to Note 8 - Variable Interest Entities for further detail.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||
|
2018
|
|
2018
|
||||
Net losses recognized on equity securities
|
$
|
(5.9
|
)
|
|
$
|
(3.7
|
)
|
Less: Net realized gains related to sales of equity securities
|
2.3
|
|
|
3.7
|
|
||
Total unrealized losses on equity securities held (1)
|
$
|
(8.2
|
)
|
|
$
|
(7.4
|
)
|
(1)
|
Net gains for 2018 are required to be reported through the income statement in accordance with the 2018 accounting guidance on financial instruments. Net unrealized gains of $9.0 million and $17.4 million in the three and six months ended June 30, 2017, respectively, were reported through AOCI.
|
|
|
|
|
June 30, 2018
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and government
agencies and authorities
|
$
|
112.7
|
|
|
$
|
(1.5
|
)
|
|
$
|
35.9
|
|
|
$
|
(0.6
|
)
|
|
$
|
148.6
|
|
|
$
|
(2.1
|
)
|
States, municipalities and political
subdivisions
|
150.8
|
|
|
(0.9
|
)
|
|
3.3
|
|
|
(0.2
|
)
|
|
154.1
|
|
|
(1.1
|
)
|
||||||
Foreign governments
|
296.8
|
|
|
(1.4
|
)
|
|
6.5
|
|
|
(0.2
|
)
|
|
303.3
|
|
|
(1.6
|
)
|
||||||
Asset-backed
|
225.4
|
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
225.4
|
|
|
(0.7
|
)
|
||||||
Commercial mortgage-backed
|
181.1
|
|
|
(1.7
|
)
|
|
12.0
|
|
|
(1.1
|
)
|
|
193.1
|
|
|
(2.8
|
)
|
||||||
Residential mortgage-backed
|
677.9
|
|
|
(12.6
|
)
|
|
161.1
|
|
|
(8.8
|
)
|
|
839.0
|
|
|
(21.4
|
)
|
||||||
U.S. corporate
|
2,037.9
|
|
|
(40.9
|
)
|
|
49.5
|
|
|
(2.8
|
)
|
|
2,087.4
|
|
|
(43.7
|
)
|
||||||
Foreign corporate
|
760.7
|
|
|
(10.1
|
)
|
|
63.6
|
|
|
(1.8
|
)
|
|
824.3
|
|
|
(11.9
|
)
|
||||||
Total fixed maturity securities
|
$
|
4,443.3
|
|
|
$
|
(69.8
|
)
|
|
$
|
331.9
|
|
|
$
|
(15.5
|
)
|
|
$
|
4,775.2
|
|
|
$
|
(85.3
|
)
|
|
December 31, 2017
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and government
agencies and authorities
|
$
|
104.2
|
|
|
$
|
(0.7
|
)
|
|
$
|
43.3
|
|
|
$
|
(0.5
|
)
|
|
$
|
147.5
|
|
|
$
|
(1.2
|
)
|
States, municipalities and political
subdivisions
|
—
|
|
|
—
|
|
|
2.4
|
|
|
(0.1
|
)
|
|
2.4
|
|
|
(0.1
|
)
|
||||||
Foreign governments
|
24.4
|
|
|
(0.2
|
)
|
|
0.8
|
|
|
(0.1
|
)
|
|
25.2
|
|
|
(0.3
|
)
|
||||||
Asset-backed
|
27.6
|
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
27.6
|
|
|
(0.1
|
)
|
||||||
Commercial mortgage-backed
|
—
|
|
|
—
|
|
|
12.4
|
|
|
(0.7
|
)
|
|
12.4
|
|
|
(0.7
|
)
|
||||||
Residential mortgage-backed
|
217.3
|
|
|
(2.4
|
)
|
|
162.9
|
|
|
(4.9
|
)
|
|
380.2
|
|
|
(7.3
|
)
|
||||||
U.S. corporate
|
562.8
|
|
|
(4.5
|
)
|
|
30.0
|
|
|
(0.5
|
)
|
|
592.8
|
|
|
(5.0
|
)
|
||||||
Foreign corporate
|
266.7
|
|
|
(3.5
|
)
|
|
19.0
|
|
|
(0.5
|
)
|
|
285.7
|
|
|
(4.0
|
)
|
||||||
Total fixed maturity securities
|
$
|
1,203.0
|
|
|
$
|
(11.4
|
)
|
|
$
|
270.8
|
|
|
$
|
(7.3
|
)
|
|
$
|
1,473.8
|
|
|
$
|
(18.7
|
)
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-redeemable preferred stock
|
$
|
13.8
|
|
|
$
|
(0.2
|
)
|
|
$
|
8.7
|
|
|
$
|
(0.3
|
)
|
|
$
|
22.5
|
|
|
$
|
(0.5
|
)
|
|
|
|
|
|
|
|
June 30, 2018
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Investments:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
35.0
|
|
|
$
|
35.0
|
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
Corporate debt securities
|
1,098.2
|
|
|
—
|
|
|
1,098.2
|
|
|
—
|
|
||||
Real estate fund
|
102.5
|
|
|
—
|
|
|
—
|
|
|
102.5
|
|
||||
Total financial assets
|
$
|
1,235.7
|
|
|
$
|
35.0
|
|
|
$
|
1,098.2
|
|
|
$
|
102.5
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Collateralized loan obligation notes
|
$
|
941.3
|
|
|
$
|
—
|
|
|
$
|
941.3
|
|
|
$
|
—
|
|
Total financial liabilities
|
$
|
941.3
|
|
|
$
|
—
|
|
|
$
|
941.3
|
|
|
$
|
—
|
|
|
December 31, 2017
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Investments:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
54.5
|
|
|
$
|
54.5
|
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
Corporate debt securities
|
570.3
|
|
|
—
|
|
|
570.3
|
|
|
—
|
|
||||
Real estate fund
|
84.7
|
|
|
—
|
|
|
—
|
|
|
84.7
|
|
||||
Total financial assets
|
$
|
709.5
|
|
|
$
|
54.5
|
|
|
$
|
570.3
|
|
|
$
|
84.7
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Collateralized loan obligation notes
|
$
|
450.7
|
|
|
$
|
—
|
|
|
$
|
450.7
|
|
|
$
|
—
|
|
Total financial liabilities
|
$
|
450.7
|
|
|
$
|
—
|
|
|
$
|
450.7
|
|
|
$
|
—
|
|
(1)
|
Amounts consist of money market funds.
|
|
|
|
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
||||
Balance, beginning of period
|
$
|
86.8
|
|
|
$
|
84.7
|
|
Purchases
|
23.0
|
|
|
23.0
|
|
||
Sales
|
(6.8
|
)
|
|
(6.8
|
)
|
||
Total (loss) income included in earnings
|
(0.5
|
)
|
|
1.6
|
|
||
Balance, end of period
|
$
|
102.5
|
|
|
$
|
102.5
|
|
•
|
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.
|
|
|
|
|
June 30, 2018
|
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government agencies and
authorities
|
$
|
184.6
|
|
|
$
|
—
|
|
|
$
|
184.6
|
|
|
$
|
—
|
|
|
State, municipalities and political subdivisions
|
478.4
|
|
|
—
|
|
|
478.4
|
|
|
—
|
|
|
||||
Foreign governments
|
919.6
|
|
|
0.6
|
|
|
919.0
|
|
|
—
|
|
|
||||
Asset-backed
|
495.2
|
|
|
—
|
|
|
450.1
|
|
|
45.1
|
|
|
||||
Commercial mortgage-backed
|
253.9
|
|
|
—
|
|
|
194.0
|
|
|
59.9
|
|
|
||||
Residential mortgage-backed
|
1,236.8
|
|
|
—
|
|
|
1,236.8
|
|
|
—
|
|
|
||||
U.S. corporate
|
5,520.2
|
|
|
—
|
|
|
5,484.8
|
|
|
35.4
|
|
|
||||
Foreign corporate
|
2,208.8
|
|
|
—
|
|
|
2,158.2
|
|
|
50.6
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
46.0
|
|
|
46.0
|
|
|
—
|
|
|
—
|
|
|
||||
Common stocks
|
16.6
|
|
|
15.9
|
|
|
0.7
|
|
|
—
|
|
|
||||
Non-redeemable preferred stocks
|
323.2
|
|
|
—
|
|
|
321.0
|
|
|
2.2
|
|
|
||||
Short-term investments
|
343.6
|
|
|
91.0
|
|
(2)
|
252.6
|
|
|
—
|
|
|
||||
Other investments
|
243.5
|
|
|
74.0
|
|
(1)
|
168.0
|
|
(3)
|
1.5
|
|
(4)
|
||||
Cash equivalents
|
637.5
|
|
|
469.0
|
|
(2)
|
168.5
|
|
(3)
|
—
|
|
|
||||
Other assets
|
3.1
|
|
|
—
|
|
|
1.5
|
|
|
1.6
|
|
(5)
|
||||
Assets held in separate accounts
|
1,824.0
|
|
|
1,674.0
|
|
(1)
|
150.0
|
|
(3)
|
—
|
|
|
||||
Total financial assets
|
$
|
14,735.0
|
|
|
$
|
2,370.5
|
|
|
$
|
12,168.2
|
|
|
$
|
196.3
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
$
|
119.4
|
|
|
$
|
74.0
|
|
(1)
|
$
|
—
|
|
(5)
|
$
|
45.4
|
|
(6)
|
Liabilities related to separate accounts
|
1,824.0
|
|
|
1,674.0
|
|
(1)
|
150.0
|
|
(3)
|
—
|
|
|
||||
Total financial liabilities
|
$
|
1,943.4
|
|
|
$
|
1,748.0
|
|
|
$
|
150.0
|
|
|
$
|
45.4
|
|
|
|
|
|
|
December 31, 2017
|
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government agencies and
authorities
|
$
|
182.6
|
|
|
$
|
—
|
|
|
$
|
182.6
|
|
|
$
|
—
|
|
|
State, municipalities and political subdivisions
|
326.2
|
|
|
—
|
|
|
326.2
|
|
|
—
|
|
|
||||
Foreign governments
|
596.8
|
|
|
1.0
|
|
|
595.8
|
|
|
—
|
|
|
||||
Asset-backed
|
190.2
|
|
|
—
|
|
|
150.8
|
|
|
39.4
|
|
|
||||
Commercial mortgage-backed
|
38.1
|
|
|
—
|
|
|
9.5
|
|
|
28.6
|
|
|
||||
Residential mortgage-backed
|
1,109.4
|
|
|
—
|
|
|
1,109.4
|
|
|
—
|
|
|
||||
U.S. corporate
|
5,371.3
|
|
|
—
|
|
|
5,350.2
|
|
|
21.1
|
|
|
||||
Foreign corporate
|
1,848.0
|
|
|
—
|
|
|
1,802.7
|
|
|
45.3
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Common stocks
|
17.7
|
|
|
17.0
|
|
|
0.7
|
|
|
—
|
|
|
||||
Non-redeemable preferred stocks
|
350.3
|
|
|
—
|
|
|
348.1
|
|
|
2.2
|
|
|
||||
Short-term investments
|
284.1
|
|
|
141.6
|
|
(2)
|
142.5
|
|
|
—
|
|
|
||||
Other investments
|
253.9
|
|
|
71.2
|
|
(1)
|
172.7
|
|
(3)
|
10.0
|
|
(4)
|
||||
Cash equivalents
|
544.9
|
|
|
519.1
|
|
(2)
|
25.8
|
|
(3)
|
—
|
|
|
||||
Other assets
|
2.1
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
(5)
|
||||
Assets held in separate accounts
|
1,800.6
|
|
|
1,635.2
|
|
(1)
|
165.4
|
|
(3)
|
—
|
|
|
||||
Total financial assets
|
$
|
12,916.2
|
|
|
$
|
2,385.1
|
|
|
$
|
10,382.4
|
|
|
$
|
148.7
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
$
|
128.7
|
|
|
$
|
71.2
|
|
(1)
|
$
|
1.0
|
|
(5)
|
$
|
56.5
|
|
(6)
|
Liabilities related to separate accounts
|
1,800.6
|
|
|
1,635.2
|
|
(1)
|
165.4
|
|
(3)
|
—
|
|
|
||||
Total financial liabilities
|
$
|
1,929.3
|
|
|
$
|
1,706.4
|
|
|
$
|
166.4
|
|
|
$
|
56.5
|
|
|
(1)
|
Primarily includes mutual funds and related obligations.
|
(2)
|
Primarily includes money market funds.
|
(3)
|
Primarily includes fixed maturity securities and related obligations.
|
(4)
|
Primarily includes fixed maturity securities and other derivatives.
|
(5)
|
Primarily includes other derivative assets and liabilities.
|
(6)
|
Primarily includes contingent consideration liabilities related to business combinations and other derivatives.
|
(7)
|
Primarily includes fixed maturity securities and certificates of deposit.
|
|
|
|
|
June 30, 2018
|
||||||||||||||||||
|
|
|
Fair Value
|
||||||||||||||||
|
Carrying
Value
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial mortgage loans on real estate
|
$
|
720.1
|
|
|
$
|
716.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
716.0
|
|
Other investments
|
94.7
|
|
|
94.7
|
|
|
35.0
|
|
|
—
|
|
|
59.7
|
|
|||||
Other assets
|
45.0
|
|
|
45.0
|
|
|
—
|
|
|
—
|
|
|
45.0
|
|
|||||
Total financial assets
|
$
|
859.8
|
|
|
$
|
855.7
|
|
|
$
|
35.0
|
|
|
$
|
—
|
|
|
$
|
820.7
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy reserves under investment products
(Individual and group annuities, subject
to discretionary withdrawal) (1)
|
$
|
608.4
|
|
|
$
|
608.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
608.5
|
|
Funds withheld under reinsurance
|
347.1
|
|
|
347.1
|
|
|
347.1
|
|
|
—
|
|
|
—
|
|
|||||
Debt
|
2,004.8
|
|
|
2,084.9
|
|
|
—
|
|
|
2,084.9
|
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
2,960.3
|
|
|
$
|
3,040.5
|
|
|
$
|
347.1
|
|
|
$
|
2,084.9
|
|
|
$
|
608.5
|
|
|
|||||||||||||||||||
|
December 31, 2017
|
||||||||||||||||||
|
|
|
Fair Value
|
||||||||||||||||
|
Carrying
Value
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial mortgage loans on real estate
|
$
|
670.2
|
|
|
$
|
679.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
679.2
|
|
Other investments
|
84.4
|
|
|
84.4
|
|
|
36.3
|
|
|
—
|
|
|
48.1
|
|
|||||
Total financial assets
|
$
|
754.6
|
|
|
$
|
763.6
|
|
|
$
|
36.3
|
|
|
$
|
—
|
|
|
$
|
727.3
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy reserves under investment products
(Individual and group annuities, subject
to discretionary withdrawal) (1)
|
$
|
634.3
|
|
|
$
|
642.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
642.5
|
|
Funds withheld under reinsurance
|
179.8
|
|
|
179.8
|
|
|
179.8
|
|
|
—
|
|
|
—
|
|
|||||
Debt
|
1,068.2
|
|
|
1,174.4
|
|
|
—
|
|
|
1,174.4
|
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
1,882.3
|
|
|
$
|
1,996.7
|
|
|
$
|
179.8
|
|
|
$
|
1,174.4
|
|
|
$
|
642.5
|
|
(1)
|
Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the table above.
|
|
|
|
|
For the Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Claims and benefits payable, at beginning of period
|
$
|
3,782.2
|
|
|
$
|
3,301.2
|
|
Less: Reinsurance ceded and other
|
(3,193.3
|
)
|
|
(2,718.2
|
)
|
||
Net claims and benefits payable, at beginning of period
|
588.9
|
|
|
583.0
|
|
||
Acquired reserves as of Acquisition Date (1)
|
142.9
|
|
|
—
|
|
||
Incurred losses and loss adjustment expenses related to:
|
|
|
|
||||
Current year
|
938.1
|
|
|
856.3
|
|
||
Prior years
|
(30.6
|
)
|
|
(60.0
|
)
|
||
Total incurred losses and loss adjustment expenses
|
907.5
|
|
|
796.3
|
|
||
Paid losses and loss adjustment expenses related to:
|
|
|
|
||||
Current year
|
624.6
|
|
|
556.0
|
|
||
Prior years
|
336.4
|
|
|
262.8
|
|
||
Total paid losses and loss adjustment expenses
|
961.0
|
|
|
818.8
|
|
||
Net claims and benefits payable, at end of period
|
678.3
|
|
|
560.5
|
|
||
Plus: Reinsurance ceded and other
|
2,824.8
|
|
|
2,532.8
|
|
||
Claims and benefits payable, at end of period
|
$
|
3,503.1
|
|
|
$
|
3,093.3
|
|
(1)
|
Acquired reserves from TWG on May 31, 2018 (the Acquisition Date) include $423.5 million of gross claims and benefits payable and $280.6 million of ceded claims and benefits payable. The reserve roll forward includes the activity of TWG from June 1, 2018 to June 30, 2018.
|
|
|
|
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Consolidated
|
||||||||
Balance at December 31, 2017 (1)
|
$
|
386.7
|
|
|
$
|
392.8
|
|
|
$
|
138.2
|
|
|
$
|
917.7
|
|
Acquisitions (2)
|
—
|
|
|
1,463.8
|
|
|
—
|
|
|
1,463.8
|
|
||||
Impairments (3)
|
(8.1
|
)
|
|
—
|
|
|
—
|
|
|
(8.1
|
)
|
||||
Foreign currency translation and other
|
—
|
|
|
(3.9
|
)
|
|
(0.3
|
)
|
|
(4.2
|
)
|
||||
Balance at June 30, 2018
|
$
|
378.6
|
|
|
$
|
1,852.7
|
|
|
$
|
137.9
|
|
|
$
|
2,369.2
|
|
(1)
|
Net of $1.26 billion of accumulated impairment losses.
|
(2)
|
Refer to Note 4 for additional information on the TWG acquisition.
|
(3)
|
Refer to Note 20 for additional information on the impairment loss on the mortgage solutions business.
|
|
Amount
|
|
Estimated Useful Life
|
||
VOBA
|
$
|
3,995.7
|
|
|
9 years
|
|
|
|
|
||
Finite life:
|
|
|
|
||
Distribution network
|
392.4
|
|
|
15 years
|
|
Technology based intangibles
|
57.4
|
|
|
9 years
|
|
Total finite life other intangible assets
|
449.8
|
|
|
|
|
Indefinite life:
|
|
|
|
||
Licenses
|
$
|
11.6
|
|
|
Indefinite
|
Total other intangible assets
|
$
|
461.4
|
|
|
|
|
|
|
|
VOBA
|
|
Other Intangible Assets (With Finite Lives)
|
||||||||||||||||||||
|
Related to TWG Acquisition
|
|
Other
|
|
Total
|
|
Related to TWG Acquisition
|
|
Other
|
|
Total
|
||||||||||||
July 1 - December 31, 2018
|
$
|
210.6
|
|
|
$
|
3.5
|
|
|
$
|
214.1
|
|
|
$
|
7.3
|
|
|
$
|
30.1
|
|
|
$
|
37.4
|
|
2019
|
519.6
|
|
|
6.6
|
|
|
526.2
|
|
|
19.4
|
|
|
41.3
|
|
|
60.7
|
|
||||||
2020
|
632.2
|
|
|
6.3
|
|
|
638.5
|
|
|
27.6
|
|
|
35.4
|
|
|
63.0
|
|
||||||
2021
|
695.9
|
|
|
0.8
|
|
|
696.7
|
|
|
31.3
|
|
|
26.8
|
|
|
58.1
|
|
||||||
2022
|
759.4
|
|
|
0.7
|
|
|
760.1
|
|
|
35.0
|
|
|
17.3
|
|
|
52.3
|
|
||||||
2023
|
765.7
|
|
|
0.6
|
|
|
766.3
|
|
|
36.2
|
|
|
11.6
|
|
|
47.8
|
|
||||||
Thereafter
|
358.3
|
|
|
2.3
|
|
|
360.6
|
|
|
291.0
|
|
|
40.7
|
|
|
331.7
|
|
||||||
Total
|
$
|
3,941.7
|
|
|
$
|
20.8
|
|
|
$
|
3,962.5
|
|
|
$
|
447.8
|
|
|
$
|
203.2
|
|
|
$
|
651.0
|
|
(1)
|
Including the equivalent ratings of any substitute rating agency.
|
(2)
|
Applies to each rating agency individually.
|
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Net unrealized
gains on
securities
|
|
Net unrealized gains on derivative transactions
|
|
OTTI
|
|
Unamortized net (losses) on Pension Plans
|
|
Accumulated
other
comprehensive
income
|
||||||||||||
Balance at March 31, 2018
|
$
|
(272.3
|
)
|
|
$
|
372.1
|
|
|
$
|
21.1
|
|
|
$
|
14.4
|
|
|
$
|
(83.6
|
)
|
|
$
|
51.7
|
|
|
|
|
Change in accumulated other
comprehensive (loss) income
before reclassifications
|
(83.1
|
)
|
|
(110.6
|
)
|
|
0.5
|
|
|
(1.4
|
)
|
|
—
|
|
|
(194.6
|
)
|
||||||
Amounts reclassified from
accumulated other comprehensive
(loss) income
|
—
|
|
|
4.7
|
|
|
(0.7
|
)
|
|
—
|
|
|
1.0
|
|
|
5.0
|
|
||||||
Net current-period other
comprehensive income (loss)
|
(83.1
|
)
|
|
(105.9
|
)
|
|
(0.2
|
)
|
|
(1.4
|
)
|
|
1.0
|
|
|
(189.6
|
)
|
||||||
Balance at June 30, 2018
|
$
|
(355.4
|
)
|
|
$
|
266.2
|
|
|
$
|
20.9
|
|
|
$
|
13.0
|
|
|
$
|
(82.6
|
)
|
|
$
|
(137.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Net unrealized
gains on
securities
|
|
Net unrealized gains on derivative transactions
|
|
OTTI
|
|
Unamortized net (losses) on Pension Plans
|
|
Accumulated
other
comprehensive
income
|
||||||||||||
Balance at March 31, 2017
|
$
|
(300.3
|
)
|
|
$
|
491.7
|
|
|
$
|
—
|
|
|
$
|
20.3
|
|
|
$
|
(63.4
|
)
|
|
$
|
148.3
|
|
Change in accumulated other
comprehensive (loss) income
before reclassifications
|
15.7
|
|
|
80.9
|
|
|
—
|
|
|
(1.5
|
)
|
|
—
|
|
|
95.1
|
|
||||||
Amounts reclassified from
accumulated other comprehensive
(loss) income
|
—
|
|
|
(7.0
|
)
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
(6.5
|
)
|
||||||
Net current-period other
comprehensive (loss) income
|
15.7
|
|
|
73.9
|
|
|
—
|
|
|
(1.5
|
)
|
|
0.5
|
|
|
88.6
|
|
||||||
Balance at June 30, 2017
|
$
|
(284.6
|
)
|
|
$
|
565.6
|
|
|
$
|
—
|
|
|
$
|
18.8
|
|
|
$
|
(62.9
|
)
|
|
$
|
236.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Net unrealized
gains on
securities
|
|
Net unrealized gains on derivative transactions
|
|
OTTI
|
|
Unamortized net (losses) on Pension Plans
|
|
Accumulated
other
comprehensive
income
|
||||||||||||
Balance at December 31, 2017
|
$
|
(281.5
|
)
|
|
$
|
581.2
|
|
|
$
|
—
|
|
|
$
|
17.9
|
|
|
$
|
(83.6
|
)
|
|
$
|
234.0
|
|
Change in accumulated other
comprehensive (loss) income
before reclassifications
|
(73.9
|
)
|
|
(288.5
|
)
|
|
21.6
|
|
|
(4.9
|
)
|
|
—
|
|
|
(345.7
|
)
|
||||||
Amounts reclassified from
accumulated other comprehensive
(loss) income
|
—
|
|
|
7.4
|
|
|
(0.7
|
)
|
|
—
|
|
|
1.0
|
|
|
7.7
|
|
||||||
Net current-period other
comprehensive income (loss)
|
(73.9
|
)
|
|
(281.1
|
)
|
|
20.9
|
|
|
(4.9
|
)
|
|
1.0
|
|
|
(338.0
|
)
|
||||||
Cumulative effect of change in
accounting principles (1)
|
—
|
|
|
(33.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33.9
|
)
|
||||||
Balance at June 30, 2018
|
$
|
(355.4
|
)
|
|
$
|
266.2
|
|
|
$
|
20.9
|
|
|
$
|
13.0
|
|
|
$
|
(82.6
|
)
|
|
$
|
(137.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||
|
Foreign
currency
translation
adjustment
|
|
Net unrealized
gains on
securities
|
|
Net unrealized gains on derivative transactions
|
|
OTTI
|
|
Unamortized net (losses) on Pension Plans
|
|
Accumulated
other
comprehensive
income
|
||||||||||||
Balance at December 31, 2016
|
$
|
(322.1
|
)
|
|
$
|
459.3
|
|
|
$
|
—
|
|
|
$
|
20.6
|
|
|
$
|
(63.2
|
)
|
|
$
|
94.6
|
|
Change in accumulated other
comprehensive (loss) income
before reclassifications
|
37.5
|
|
|
117.1
|
|
|
—
|
|
|
(1.8
|
)
|
|
—
|
|
|
152.8
|
|
||||||
Amounts reclassified from
accumulated other comprehensive
(loss) income
|
—
|
|
|
(10.8
|
)
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
(10.5
|
)
|
||||||
Net current-period other
comprehensive (loss) income
|
37.5
|
|
|
106.3
|
|
|
—
|
|
|
(1.8
|
)
|
|
0.3
|
|
|
142.3
|
|
||||||
Balance at June 30, 2017
|
$
|
(284.6
|
)
|
|
$
|
565.6
|
|
|
$
|
—
|
|
|
$
|
18.8
|
|
|
$
|
(62.9
|
)
|
|
$
|
236.9
|
|
(1)
|
See Note 3 for additional information.
|
|
|
|
Details about accumulated other comprehensive income components
|
|
Amount reclassified from
accumulated other
comprehensive income
|
|
Affected line item in the
statement where net
income is presented
|
||||||
|
|
Three Months Ended June 30,
|
|
|
||||||
|
|
2018
|
|
2017
|
|
|
||||
Net unrealized gains on securities
|
|
$
|
6.0
|
|
|
$
|
(10.8
|
)
|
|
Net realized gains on investments, excluding other-than-temporary impairment losses
|
|
|
(1.3
|
)
|
|
3.8
|
|
|
Provision for income taxes
|
||
|
|
$
|
4.7
|
|
|
$
|
(7.0
|
)
|
|
Net of tax
|
Unrealized gains on derivative transactions
|
|
$
|
(0.9
|
)
|
|
$
|
—
|
|
|
Interest Expense
|
|
|
0.2
|
|
|
—
|
|
|
Provision for income taxes
|
||
|
|
$
|
(0.7
|
)
|
|
$
|
—
|
|
|
Net of tax
|
Amortization of pension and postretirement
unrecognized net periodic benefit cost:
|
|
|
|
|
|
|
||||
Amortization of net loss
|
|
$
|
1.2
|
|
|
$
|
0.8
|
|
|
(1)
|
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
Provision for income taxes
|
||
|
|
$
|
1.0
|
|
|
$
|
0.5
|
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
5.0
|
|
|
$
|
(6.5
|
)
|
|
Net of tax
|
|
|
|
|
|
|
|
||||
Details about accumulated other comprehensive income components
|
|
Amount reclassified from
accumulated other
comprehensive income
|
|
Affected line item in the
statement where net
income is presented
|
||||||
|
|
Six Months Ended June 30,
|
|
|
||||||
|
|
2018
|
|
2017
|
|
|
||||
Net unrealized gains on securities
|
|
$
|
9.4
|
|
|
$
|
(16.7
|
)
|
|
Net realized gains on investments, excluding other-than-temporary impairment losses
|
|
|
(2.0
|
)
|
|
5.9
|
|
|
Provision for income taxes
|
||
|
|
$
|
7.4
|
|
|
$
|
(10.8
|
)
|
|
Net of tax
|
Unrealized gains on derivative transactions
|
|
$
|
(0.9
|
)
|
|
$
|
—
|
|
|
Interest Expense
|
|
|
0.2
|
|
|
—
|
|
|
Provision for income taxes
|
||
|
|
$
|
(0.7
|
)
|
|
$
|
—
|
|
|
Net of tax
|
Amortization of pension and postretirement
unrecognized net periodic benefit cost:
|
|
|
|
|
|
|
||||
Settlement gain
|
|
$
|
—
|
|
|
$
|
(0.6
|
)
|
|
Settlement gain
|
Amortization of net loss
|
|
1.2
|
|
|
1.1
|
|
|
(1)
|
||
|
|
1.2
|
|
|
0.5
|
|
|
Total before tax
|
||
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
Provision for income taxes
|
||
|
|
$
|
1.0
|
|
|
$
|
0.3
|
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
7.7
|
|
|
$
|
(10.5
|
)
|
|
Net of tax
|
(1)
|
These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 17 - Retirement and Other Employee Benefits for additional information.
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
RSU compensation expense
|
$
|
8.7
|
|
|
$
|
6.1
|
|
|
$
|
13.8
|
|
|
$
|
10.8
|
|
Income tax benefit
|
(1.5
|
)
|
|
(2.1
|
)
|
|
(2.3
|
)
|
|
(3.8
|
)
|
||||
RSU compensation expense, net of tax
|
$
|
7.2
|
|
|
$
|
4.0
|
|
|
$
|
11.5
|
|
|
$
|
7.0
|
|
RSUs granted
|
32,330
|
|
|
31,554
|
|
|
421,829
|
|
|
205,199
|
|
||||
Weighted average grant date fair value per unit
|
$
|
89.56
|
|
|
$
|
99.74
|
|
|
$
|
90.64
|
|
|
$
|
99.17
|
|
Total fair value of vested RSUs
|
$
|
2.6
|
|
|
$
|
3.5
|
|
|
$
|
18.8
|
|
|
$
|
23.9
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
PSU compensation expense
|
$
|
3.1
|
|
|
$
|
3.2
|
|
|
$
|
7.3
|
|
|
$
|
0.1
|
|
Income tax benefit
|
(0.4
|
)
|
|
(1.1
|
)
|
|
(1.3
|
)
|
|
—
|
|
||||
PSU compensation expense, net of tax
|
$
|
2.7
|
|
|
$
|
2.1
|
|
|
$
|
6.0
|
|
|
$
|
0.1
|
|
PSUs granted
|
—
|
|
|
—
|
|
|
—
|
|
|
237,623
|
|
||||
Weighted average grant date fair value per unit
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
112.32
|
|
Total fair value of vested PSUs
|
$
|
25.6
|
|
|
$
|
29.4
|
|
|
$
|
25.6
|
|
|
$
|
29.4
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Numerator
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
67.0
|
|
|
$
|
120.2
|
|
|
$
|
173.0
|
|
|
$
|
264.0
|
|
Less: Preferred stock dividends
|
(4.8
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
||||
Net income attributable to common stockholders
|
62.2
|
|
|
120.2
|
|
|
168.2
|
|
|
264.0
|
|
||||
Less: Common stock dividends paid
|
(30.9
|
)
|
|
(30.3
|
)
|
|
(60.6
|
)
|
|
(60.0
|
)
|
||||
Undistributed earnings
|
$
|
31.3
|
|
|
$
|
89.9
|
|
|
$
|
107.6
|
|
|
$
|
204.0
|
|
Denominator
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding used in basic
earnings per share
|
57,060,313
|
|
|
55,230,367
|
|
|
55,125,584
|
|
|
55,713,172
|
|
||||
Incremental common shares from:
|
|
|
|
|
|
|
|
||||||||
PSUs
|
163,596
|
|
|
239,400
|
|
|
217,455
|
|
|
321,849
|
|
||||
ESPP
|
40,499
|
|
|
40,131
|
|
|
40,499
|
|
|
40,131
|
|
||||
MCPS
|
—
|
|
|
—
|
|
|
1,889,890
|
|
|
—
|
|
||||
Weighted average shares used in diluted earnings per
share calculations
|
57,264,408
|
|
|
55,509,898
|
|
|
57,273,428
|
|
|
56,075,152
|
|
||||
Earnings per common share - Basic
|
|
|
|
|
|
|
|
||||||||
Distributed earnings
|
$
|
0.54
|
|
|
$
|
0.55
|
|
|
$
|
1.10
|
|
|
$
|
1.08
|
|
Undistributed earnings
|
0.55
|
|
|
1.63
|
|
|
1.95
|
|
|
3.66
|
|
||||
Net income attributable to common stockholders
|
$
|
1.09
|
|
|
$
|
2.18
|
|
|
$
|
3.05
|
|
|
$
|
4.74
|
|
Earnings per common share - Diluted
|
|
|
|
|
|
|
|
||||||||
Distributed earnings
|
$
|
0.54
|
|
|
$
|
0.54
|
|
|
$
|
1.06
|
|
|
$
|
1.07
|
|
Undistributed earnings
|
0.55
|
|
|
1.62
|
|
|
1.96
|
|
|
3.64
|
|
||||
Net income attributable to common stockholders
|
$
|
1.09
|
|
|
$
|
2.16
|
|
|
$
|
3.02
|
|
|
$
|
4.71
|
|
|
|
|
|
Qualified Pension Benefits
|
|
Unfunded Nonqualified Pension
Benefits
|
|
Retirement Health
Benefits
|
|||||||||||||||||||||
|
For the Three Months Ended June 30,
|
|
For the Three Months Ended June 30,
|
|
For the Three Months Ended June 30,
|
|||||||||||||||||||||
|
2018
|
|
2017 Plan 1
|
2017 Plan 2
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||
Interest cost
|
5.8
|
|
|
2.9
|
|
3.1
|
|
|
0.7
|
|
|
0.7
|
|
|
0.9
|
|
|
0.8
|
|
|||||||
Expected return on plan assets
|
(9.1
|
)
|
|
(6.1
|
)
|
(6.8
|
)
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
(0.7
|
)
|
|||||||
Amortization of net loss
|
0.2
|
|
|
—
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|||||||
Net periodic benefit cost
|
$
|
(3.1
|
)
|
|
$
|
(3.2
|
)
|
$
|
(3.4
|
)
|
|
$
|
1.0
|
|
|
$
|
1.0
|
|
|
$
|
0.3
|
|
|
$
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
Qualified Pension
Benefits
|
|
Unfunded Nonqualified Pension
Benefits
|
|
Retirement Health
Benefits
|
|||||||||||||||||||||
|
For the Six Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
|||||||||||||||||||||
|
2018
|
|
2017 Plan 1
|
2017 Plan 2
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||
Interest cost
|
$
|
11.6
|
|
|
$
|
5.8
|
|
$
|
6.2
|
|
|
$
|
1.4
|
|
|
$
|
1.5
|
|
|
$
|
1.7
|
|
|
$
|
1.7
|
|
Expected return on plan assets
|
(18.2
|
)
|
|
(12.2
|
)
|
(13.6
|
)
|
|
—
|
|
|
—
|
|
|
(1.1
|
)
|
|
(1.5
|
)
|
|||||||
Amortization of net loss
|
0.4
|
|
|
—
|
|
0.6
|
|
|
0.8
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|||||||
Curtailment/settlement gain
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|||||||
Net periodic benefit cost
|
$
|
(6.2
|
)
|
|
$
|
(6.4
|
)
|
$
|
(6.8
|
)
|
|
$
|
2.2
|
|
|
$
|
1.4
|
|
|
$
|
0.6
|
|
|
$
|
0.2
|
|
|
|
|
(i)
|
the effective integration of The Warranty Group acquisition;
|
(ii)
|
the loss of significant client relationships or business, distribution sources and contracts;
|
(iii)
|
the impact of general economic, financial market and political conditions;
|
(iv)
|
the adequacy of reserves established for future claims;
|
(v)
|
the impact of catastrophic losses, including human-made catastrophic losses;
|
(vi)
|
a decline in our credit or financial strength ratings;
|
(vii)
|
risks related to our international operations, including fluctuations in exchange rates;
|
(viii)
|
an impairment of the Company’s goodwill or other intangible assets resulting from a sustained significant decline in the Company’s stock price, a decline in actual or expected future cash flows or income, a significant adverse change in the business climate or slower growth rate, among other circumstances;
|
(ix)
|
a failure to effectively maintain and modernize our information technology systems;
|
(x)
|
the Company’s vulnerability to system security threats, data protection breaches, cyber-attacks and data breaches compromising client information and privacy;
|
(xi)
|
significant competitive pressures in our businesses or changes in customer preferences;
|
(xii)
|
the failure to find and integrate suitable acquisitions and new ventures;
|
(xiii)
|
a decline in the sales of our products and services resulting from an inability to develop and maintain distribution sources or attract and retain sales representatives;
|
(xiv)
|
a decrease in the value of our investment portfolio;
|
(xv)
|
the impact of recently enacted tax reform legislation in the U.S.;
|
(xvi)
|
the impact from litigation, other contingent liabilities and loss contingencies, regulatory investigations, reviews and markets studies to which we are or may become subject;
|
(xvii)
|
the extensive laws and regulations to which we are and may become subject, including relating to data privacy (such as the new privacy acts in the European Union and in California), could increase our costs, restrict the conduct of our business and limit our growth;
|
(xviii)
|
the failure to successfully manage outsourcing activities, such as call center services;
|
(xix)
|
a decline in the value of mobile devices in our inventory or those that are subject to guaranteed buyback provisions;
|
(xx)
|
the unavailability or inadequacy of reinsurance coverage;
|
(xxi)
|
the insolvency of third parties to whom we have sold or may sell businesses through reinsurance or modified co-insurance;
|
(xxii)
|
the credit risk of some of our agents that we are exposed to due to the structure of our commission program;
|
(xxiii)
|
the inability of our subsidiaries to pay sufficient dividends to the holding company; and
|
(xxiv)
|
the failure to attract and retain key personnel and to provide for succession of senior management and key executives.
|
•
|
Global Housing: provides lender-placed homeowners, manufactured housing and flood insurance; renters insurance and related products (referred to as multifamily housing); and valuation and field services (referred to as mortgage solutions).
|
•
|
Global Lifestyle: provides mobile device protection and related services and extended service products and related services (referred to as Connected Living); vehicle protection services (referred to as Global Automotive) and credit insurance and other insurance (referred to as Financial Services).
|
•
|
Global Preneed: provides pre-funded funeral insurance.
|
•
|
Total Corporate and Other: Corporate and Other includes activities of the holding company, financing and interest expenses, net realized gains (losses) on investments, interest income earned from short-term investments held and income (expenses) primarily related to the Company's frozen benefit plans. Corporate and Other also includes the amortization of deferred gains associated with the sales of Fortis Financial Group, Long-Term Care and the Assurant Employee Benefits businesses through reinsurance agreements, expenses related to the acquisition of The Warranty Group (see below) and other unusual or infrequent items. Additionally, the Total Corporate and Other segment includes amounts related to the runoff of the Assurant Health business. As Assurant Health was a reportable segment in prior years, these amounts are disclosed for comparability.
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
1,338.3
|
|
|
$
|
1,115.3
|
|
|
$
|
2,463.2
|
|
|
$
|
2,165.6
|
|
Fees and other income
|
354.2
|
|
|
326.9
|
|
|
718.7
|
|
|
667.1
|
|
||||
Net investment income
|
135.6
|
|
|
121.7
|
|
|
265.8
|
|
|
242.3
|
|
||||
Net realized (losses) gains on investments
|
(11.4
|
)
|
|
13.2
|
|
|
(10.9
|
)
|
|
16.6
|
|
||||
Amortization of deferred gains on disposal
of businesses
|
15.0
|
|
|
23.4
|
|
|
33.5
|
|
|
60.4
|
|
||||
Total revenues
|
1,831.7
|
|
|
1,600.5
|
|
|
3,470.3
|
|
|
3,152.0
|
|
||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
490.6
|
|
|
416.4
|
|
|
905.2
|
|
|
774.4
|
|
||||
Amortization of deferred acquisition costs and value
of business acquired
|
463.2
|
|
|
346.7
|
|
|
809.6
|
|
|
661.2
|
|
||||
Underwriting, general and administrative expenses
|
773.6
|
|
|
646.3
|
|
|
1,493.2
|
|
|
1,297.6
|
|
||||
Interest expense
|
26.0
|
|
|
12.4
|
|
|
47.5
|
|
|
25.0
|
|
||||
Total benefits, losses and expenses
|
1,753.4
|
|
|
1,421.8
|
|
|
3,255.5
|
|
|
2,758.2
|
|
||||
Income before provision for income taxes
|
78.3
|
|
|
178.7
|
|
|
214.8
|
|
|
393.8
|
|
||||
Provision for income taxes
|
11.3
|
|
|
58.5
|
|
|
41.8
|
|
|
129.8
|
|
||||
Net income
|
67.0
|
|
|
120.2
|
|
|
173.0
|
|
|
264.0
|
|
||||
Less: Preferred stock dividends
|
(4.8
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
||||
Net income attributable to common stockholders
|
$
|
62.2
|
|
|
$
|
120.2
|
|
|
$
|
168.2
|
|
|
$
|
264.0
|
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
449.7
|
|
|
$
|
442.4
|
|
|
$
|
886.1
|
|
|
$
|
878.8
|
|
Fees and other income
|
92.8
|
|
|
107.8
|
|
|
179.5
|
|
|
203.1
|
|
||||
Net investment income
|
15.9
|
|
|
16.8
|
|
|
36.1
|
|
|
36.0
|
|
||||
Total revenues
|
558.4
|
|
|
567.0
|
|
|
1,101.7
|
|
|
1,117.9
|
|
||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
187.2
|
|
|
188.2
|
|
|
356.3
|
|
|
351.5
|
|
||||
Amortization of deferred acquisition costs and value
of business acquired
|
50.4
|
|
|
46.8
|
|
|
100.0
|
|
|
97.7
|
|
||||
Underwriting, general and administrative expenses
|
229.3
|
|
|
247.5
|
|
|
464.2
|
|
|
488.2
|
|
||||
Total benefits, losses and expenses
|
466.9
|
|
|
482.5
|
|
|
920.5
|
|
|
937.4
|
|
||||
Segment income before provision for income taxes
|
91.5
|
|
|
84.5
|
|
|
181.2
|
|
|
180.5
|
|
||||
Provision for income taxes
|
18.9
|
|
|
28.3
|
|
|
37.4
|
|
|
62.4
|
|
||||
Segment net income
|
$
|
72.6
|
|
|
$
|
56.2
|
|
|
$
|
143.8
|
|
|
$
|
118.1
|
|
Net earned premiums, fees and other:
|
|
|
|
|
|
|
|
||||||||
Lender-placed insurance
|
$
|
288.5
|
|
|
$
|
305.9
|
|
|
$
|
578.2
|
|
|
$
|
611.5
|
|
Multifamily housing
|
100.3
|
|
|
90.3
|
|
|
197.5
|
|
|
175.7
|
|
||||
Mortgage solutions
|
53.3
|
|
|
69.7
|
|
|
98.8
|
|
|
130.6
|
|
||||
Manufactured housing and other
|
100.4
|
|
|
84.3
|
|
|
191.1
|
|
|
164.1
|
|
||||
Total
|
$
|
542.5
|
|
|
$
|
550.2
|
|
|
$
|
1,065.6
|
|
|
$
|
1,081.9
|
|
Ratios:
|
|
|
|
|
|
|
|
||||||||
Combined ratio for risk-based businesses (1)
|
85.7
|
%
|
|
87.0
|
%
|
|
85.5
|
%
|
|
85.0
|
%
|
||||
Pre-tax income margin for fee-based, capital-light
businesses (2)
|
14.3
|
%
|
|
11.7
|
%
|
|
12.9
|
%
|
|
10.3
|
%
|
(1)
|
The combined ratio for risk-based businesses is equal to total policyholder benefits, losses and expenses, including reportable catastrophe losses, divided by net earned premiums and fees and other income for lender-placed and manufactured housing and other risk-based businesses.
|
(2)
|
The pre-tax margin for fee-based, capital-light businesses equals income before provision for income taxes divided by net earned premiums and fees and other income for multifamily housing and mortgage solutions.
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
874.3
|
|
|
$
|
656.0
|
|
|
$
|
1,547.9
|
|
|
$
|
1,251.8
|
|
Fees and other income
|
227.9
|
|
|
180.0
|
|
|
472.8
|
|
|
389.1
|
|
||||
Net investment income
|
36.6
|
|
|
26.4
|
|
|
68.7
|
|
|
52.9
|
|
||||
Total revenues
|
1,138.8
|
|
|
862.4
|
|
|
2,089.4
|
|
|
1,693.8
|
|
||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
239.3
|
|
|
178.1
|
|
|
420.9
|
|
|
326.7
|
|
||||
Amortization of deferred acquisition costs and value
of business acquired
|
395.6
|
|
|
283.6
|
|
|
675.9
|
|
|
534.6
|
|
||||
Underwriting, general and administrative expenses
|
419.6
|
|
|
340.6
|
|
|
835.4
|
|
|
695.3
|
|
||||
Total benefits, losses and expenses
|
1,054.5
|
|
|
802.3
|
|
|
1,932.2
|
|
|
1,556.6
|
|
||||
Segment income before provision for income taxes
|
84.3
|
|
|
60.1
|
|
|
157.2
|
|
|
137.2
|
|
||||
Provision for income taxes
|
16.2
|
|
|
19.9
|
|
|
33.3
|
|
|
44.6
|
|
||||
Segment net income
|
$
|
68.1
|
|
|
$
|
40.2
|
|
|
$
|
123.9
|
|
|
$
|
92.6
|
|
Net earned premiums, fees and other:
|
|
|
|
|
|
|
|
||||||||
Global connected living (mobile, service contracts
and assistance services)
|
$
|
629.3
|
|
|
$
|
513.4
|
|
|
$
|
1,231.4
|
|
|
$
|
1,025.6
|
|
Global automotive
|
361.2
|
|
|
208.2
|
|
|
563.7
|
|
|
383.0
|
|
||||
Global financial services
|
111.7
|
|
|
114.4
|
|
|
225.6
|
|
|
232.3
|
|
||||
Total
|
$
|
1,102.2
|
|
|
$
|
836.0
|
|
|
$
|
2,020.7
|
|
|
$
|
1,640.9
|
|
Net earned premiums, fees and other:
|
|
|
|
|
|
|
|
||||||||
Domestic
|
$
|
736.2
|
|
|
$
|
529.2
|
|
|
$
|
1,315.7
|
|
|
$
|
1,035.5
|
|
International
|
366.0
|
|
|
306.8
|
|
|
705.0
|
|
|
605.4
|
|
||||
Total
|
$
|
1,102.2
|
|
|
$
|
836.0
|
|
|
$
|
2,020.7
|
|
|
$
|
1,640.9
|
|
Ratios:
|
|
|
|
|
|
|
|
||||||||
Combined ratio for risk-based businesses (1)
|
96.6
|
%
|
|
97.0
|
%
|
|
97.6
|
%
|
|
94.7
|
%
|
||||
Pre-tax income margin for fee-based, capital-light
businesses (2)
|
7.1
|
%
|
|
6.4
|
%
|
|
7.6
|
%
|
|
6.8
|
%
|
(1)
|
The combined ratio for risk-based businesses is equal to total policyholder benefits, losses and expenses divided by net earned premiums and fees and other income for Global Automotive and Financial Services.
|
(2)
|
The pre-tax income margin for fee-based, capital-light businesses equals income before provision for income taxes divided by net earned premiums and fees and other income for Connected Living, including mobile, extended service contracts and assistance services.
|
|
For the Three Months Ended June 30,
|
|
For the Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Net earned premiums
|
$
|
14.2
|
|
|
$
|
15.2
|
|
|
$
|
28.8
|
|
|
$
|
29.8
|
|
Fees and other income
|
32.7
|
|
|
31.1
|
|
|
64.3
|
|
|
60.7
|
|
||||
Net investment income
|
67.9
|
|
|
65.0
|
|
|
133.7
|
|
|
129.2
|
|
||||
Total revenues
|
114.8
|
|
|
111.3
|
|
|
226.8
|
|
|
219.7
|
|
||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
65.0
|
|
|
61.9
|
|
|
131.7
|
|
|
128.1
|
|
||||
Amortization of deferred acquisition costs and value
of business acquired |
17.2
|
|
|
16.3
|
|
|
33.7
|
|
|
28.9
|
|
||||
Underwriting, general and administrative expenses
|
13.8
|
|
|
14.3
|
|
|
30.0
|
|
|
29.2
|
|
||||
Total benefits, losses and expenses
|
96.0
|
|
|
92.5
|
|
|
195.4
|
|
|
186.2
|
|
||||
Segment income before provision for income taxes
|
18.8
|
|
|
18.8
|
|
|
31.4
|
|
|
33.5
|
|
||||
Provision for income taxes
|
4.1
|
|
|
6.0
|
|
|
6.9
|
|
|
10.8
|
|
||||
Segment net income
|
$
|
14.7
|
|
|
$
|
12.8
|
|
|
$
|
24.5
|
|
|
$
|
22.7
|
|
|
For the Three Months Ended June 30,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
|
Corporate and Other
|
|
Health
|
|
Total Corporate and Other
|
|
Corporate and Other
|
|
Health
|
|
Total Corporate and Other
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net earned premiums
|
$
|
—
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
1.7
|
|
|
$
|
1.7
|
|
Fees and other income
|
0.6
|
|
|
0.2
|
|
|
0.8
|
|
|
6.9
|
|
|
1.1
|
|
|
8.0
|
|
||||||
Net investment income
|
14.6
|
|
|
0.6
|
|
|
15.2
|
|
|
9.8
|
|
|
3.7
|
|
|
13.5
|
|
||||||
Net realized (losses) gains on investments
|
(11.4
|
)
|
|
—
|
|
|
(11.4
|
)
|
|
13.2
|
|
|
—
|
|
|
13.2
|
|
||||||
Amortization of deferred gains on
disposal of businesses
|
15.0
|
|
|
—
|
|
|
15.0
|
|
|
23.4
|
|
|
—
|
|
|
23.4
|
|
||||||
Total revenues
|
18.8
|
|
|
0.9
|
|
|
19.7
|
|
|
53.3
|
|
|
6.5
|
|
|
59.8
|
|
||||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits
|
—
|
|
|
(0.9
|
)
|
|
(0.9
|
)
|
|
—
|
|
|
(11.8
|
)
|
|
(11.8
|
)
|
||||||
General and administrative expenses
|
109.4
|
|
|
1.5
|
|
|
110.9
|
|
|
29.9
|
|
|
14.0
|
|
|
43.9
|
|
||||||
Interest expense
|
26.0
|
|
|
—
|
|
|
26.0
|
|
|
12.4
|
|
|
—
|
|
|
12.4
|
|
||||||
Total benefits, losses and expenses
|
135.4
|
|
|
0.6
|
|
|
136.0
|
|
|
42.3
|
|
|
2.2
|
|
|
44.5
|
|
||||||
Segment (loss) income before (benefit) provision
for income taxes
|
(116.6
|
)
|
|
0.3
|
|
|
(116.3
|
)
|
|
11.0
|
|
|
4.3
|
|
|
15.3
|
|
||||||
(Benefit) provision for income taxes
|
(28.0
|
)
|
|
0.1
|
|
|
(27.9
|
)
|
|
3.5
|
|
|
0.8
|
|
|
4.3
|
|
||||||
Segment net (loss) income
|
(88.6
|
)
|
|
0.2
|
|
|
(88.4
|
)
|
|
7.5
|
|
|
3.5
|
|
|
11.0
|
|
||||||
Less: Preferred stock dividends
|
(4.8
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net (loss) income attributable to common stockholders
|
$
|
(93.4
|
)
|
|
$
|
0.2
|
|
|
$
|
(93.2
|
)
|
|
$
|
7.5
|
|
|
$
|
3.5
|
|
|
$
|
11.0
|
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||
|
2018
|
|
2017
|
||||||||||||||||||||
|
Corporate and Other
|
|
Health
|
|
Total Corporate and Other
|
|
Corporate and Other
|
|
Health
|
|
Total Corporate and Other
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net earned premiums
|
$
|
—
|
|
|
0.4
|
|
|
0.4
|
|
|
$
|
—
|
|
|
$
|
5.2
|
|
|
$
|
5.2
|
|
||
Fees and other income
|
1.8
|
|
|
0.3
|
|
|
2.1
|
|
|
11.8
|
|
|
2.4
|
|
|
14.2
|
|
||||||
Net investment income
|
25.6
|
|
|
1.7
|
|
|
27.3
|
|
|
19.4
|
|
|
4.8
|
|
|
24.2
|
|
||||||
Net realized gains on investments
|
(10.9
|
)
|
|
—
|
|
|
(10.9
|
)
|
|
16.6
|
|
|
—
|
|
|
16.6
|
|
||||||
Amortization of deferred gains on
disposal of businesses
|
33.5
|
|
|
—
|
|
|
33.5
|
|
|
60.4
|
|
|
—
|
|
|
60.4
|
|
||||||
Total revenues
|
50.0
|
|
|
2.4
|
|
|
52.4
|
|
|
108.2
|
|
|
12.4
|
|
|
120.6
|
|
||||||
Benefits, losses and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits
|
—
|
|
|
(3.7
|
)
|
|
(3.7
|
)
|
|
—
|
|
|
(31.9
|
)
|
|
(31.9
|
)
|
||||||
General and administrative expenses
|
160.4
|
|
|
3.2
|
|
|
163.6
|
|
|
57.5
|
|
|
27.4
|
|
|
84.9
|
|
||||||
Interest expense
|
47.5
|
|
|
—
|
|
|
47.5
|
|
|
25.0
|
|
|
—
|
|
|
25.0
|
|
||||||
Total benefits, losses and expenses
|
207.9
|
|
|
(0.5
|
)
|
|
207.4
|
|
|
82.5
|
|
|
(4.5
|
)
|
|
78.0
|
|
||||||
Segment (loss) income before (benefit) provision
for income taxes
|
(157.9
|
)
|
|
2.9
|
|
|
(155.0
|
)
|
|
25.7
|
|
|
16.9
|
|
|
42.6
|
|
||||||
(Benefit) provision for income taxes
|
(36.5
|
)
|
|
0.7
|
|
|
(35.8
|
)
|
|
6.5
|
|
|
5.5
|
|
|
12.0
|
|
||||||
Segment net (loss) income
|
(121.4
|
)
|
|
2.2
|
|
|
(119.2
|
)
|
|
19.2
|
|
|
11.4
|
|
|
30.6
|
|
||||||
Less: Preferred stock dividends
|
(4.8
|
)
|
|
—
|
|
|
(4.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net (loss) income attributable to common stockholders
|
$
|
(126.2
|
)
|
|
$
|
2.2
|
|
|
$
|
(124.0
|
)
|
|
$
|
19.2
|
|
|
$
|
11.4
|
|
|
$
|
30.6
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Fixed maturity securities
|
$
|
107.8
|
|
|
$
|
105.7
|
|
|
$
|
212.4
|
|
|
$
|
208.6
|
|
Equity securities
|
5.1
|
|
|
5.9
|
|
|
10.1
|
|
|
11.8
|
|
||||
Commercial mortgage loans on real estate
|
7.8
|
|
|
7.2
|
|
|
16.1
|
|
|
16.2
|
|
||||
Short-term investments
|
3.7
|
|
|
0.9
|
|
|
6.1
|
|
|
2.7
|
|
||||
Other investments
|
3.8
|
|
|
3.8
|
|
|
9.9
|
|
|
7.2
|
|
||||
Cash and cash equivalents
|
9.5
|
|
|
3.7
|
|
|
14.4
|
|
|
6.9
|
|
||||
Revenue from consolidated investment entities (1)
|
17.4
|
|
|
—
|
|
|
30.9
|
|
|
—
|
|
||||
Total investment income
|
155.1
|
|
|
127.2
|
|
|
299.9
|
|
|
253.4
|
|
||||
Investment expenses
|
(4.7
|
)
|
|
(5.5
|
)
|
|
(8.9
|
)
|
|
(11.1
|
)
|
||||
Expenses from consolidated investment entities (1)
|
(14.8
|
)
|
|
—
|
|
|
$
|
(25.2
|
)
|
|
$
|
—
|
|
||
Net investment income
|
$
|
135.6
|
|
|
$
|
121.7
|
|
|
$
|
265.8
|
|
|
$
|
242.3
|
|
(1)
|
The net of revenues and expenses from consolidated investment entities of $2.6 million for Second Quarter 2018 includes $(0.3) million and $1.1 million of investment (loss) income from the Company's direct investment the real estate fund and collateralized loan obligations ("CLOs"), respectively, and $1.8 million related to investment management fees. The net revenues and expenses from consolidated investment entities of $5.7 million for Six Months 2018 includes $1.6 million and $1.9 million of investment income from the Company's direct investment the real estate fund and CLOs, respectively, and $2.2 million related to investment management fees. Refer to Note 8 - Variable Interest Entities, for further detail.
|
•
|
Affirmed all ratings of legacy Assurant entities with a stable outlook, except for a revised outlook on the financial strength ratings to negative from stable for our two subsidiaries that sold the Assurant Employee Benefits business through reinsurance due to their diminished profile following the sale.
|
•
|
Upgraded the financial strength ratings of rated TWG entities from A- to A with a stable outlook.
|
•
|
In connection with the acquisition of TWG and the related financing, lowered the senior debt rating to Baa3 from Baa2, the subordinated debt rating to Ba1 from Baa3.
|
•
|
The insurance financial strength ratings of property and casualty operating subsidiaries revised to A3 from A2, life insurance subsidiaries revised to Baa1 from A3 and the commercial paper rating to P-3 from P-2, with a stable outlook on all ratings.
|
•
|
In connection with the acquisition of TWG and the related financing, lowered the long-term issuer credit rating of the holding company from BBB+ to BBB with a stable outlook.
|
•
|
Affirmed the short-term issuer credit rating.
|
•
|
Financial strength ratings of rated operating subsidiaries were affirmed with a stable outlook.
|
|
For the Six Months Ended June 30,
|
||||||
Net cash provided by (used in):
|
2018
|
|
2017
|
||||
Operating activities
|
$
|
172.3
|
|
|
$
|
(0.3
|
)
|
Investing activities
|
(1,514.8
|
)
|
|
3.7
|
|
||
Financing activities
|
1,644.5
|
|
|
(192.3
|
)
|
||
Cash included in business classified as held for sale
|
(22.3
|
)
|
|
—
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(22.8
|
)
|
|
5.1
|
|
||
Net change in cash
|
$
|
256.9
|
|
|
$
|
(183.8
|
)
|
|
For the Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Interest paid on debt
|
$
|
22.3
|
|
|
$
|
24.0
|
|
Common stock dividends
|
60.6
|
|
|
60.0
|
|
||
Preferred stock dividends
|
4.8
|
|
|
—
|
|
||
Total
|
$
|
87.7
|
|
|
$
|
84.0
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101
|
|
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2018, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statement of Changes in Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. |
|
|
|
|
|
|
|
ASSURANT, INC.
|
||
|
|
|
|
|
Date: August 9, 2018
|
|
By:
|
|
/s/ ALAN B. COLBERG
|
|
|
Name:
|
|
Alan B. Colberg
|
|
|
Title:
|
|
President, Chief Executive Officer and Director
|
|
|
|
|
|
Date: August 9, 2018
|
|
By:
|
|
/s/ RICHARD S. DZIADZIO
|
|
|
Name:
|
|
Richard S. Dziadzio
|
|
|
Title:
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
|
Chair
|
||
Chair of the Board
|
$
|
180,000
|
|
Audit Committee
|
$
|
25,000
|
|
Vice Chair - Audit Committee
|
$
|
15,000
|
|
Compensation Committee
|
$
|
20,000
|
|
Nominating and Corporate Governance Committee
|
$
|
20,000
|
|
Finance and Risk Committee
|
$
|
20,000
|
|
Executive Committee
|
$
|
—
|
|
Any additional committee formed in the future
|
$
|
15,000
|
|
ASSURANT, INC.
|
|
|
By: Robyn Price Stonehill
|
Title: Executive Vice President, Chief Human Resources Officer
|
Targeted Percentile Rank
|
Percentage of Applicable Restricted Stock Units that Vest
|
90th Percentile and Above
|
200%
|
75th Percentile
|
150%
|
50th Percentile
|
100%
|
25th Percentile
|
50%
|
Below 25th Percentile
|
0%
|
Participant:
|
|
|
|
Date:
|
|
|
|
Assurant, Inc.:
|
|
By:
|
|
Name:
|
|
Title:
|
|
Date:
|
|
|
June 30,
2018 |
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|
2013
|
||||||||||||
Income before income taxes
|
$
|
214.8
|
|
|
$
|
444.5
|
|
|
$
|
848.6
|
|
|
$
|
201.2
|
|
|
$
|
744.1
|
|
|
$
|
789.7
|
|
Fixed charges
|
51.8
|
|
|
57.4
|
|
|
66.5
|
|
|
65.7
|
|
|
68.5
|
|
|
86.8
|
|
||||||
Income as adjusted
|
$
|
266.6
|
|
|
$
|
501.9
|
|
|
$
|
915.1
|
|
|
$
|
266.9
|
|
|
$
|
812.6
|
|
|
$
|
876.5
|
|
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense, including discount amortization
|
$
|
47.5
|
|
|
$
|
49.5
|
|
|
$
|
57.6
|
|
|
$
|
55.1
|
|
|
$
|
58.4
|
|
|
$
|
77.7
|
|
Portion of rents representative of an appropriate interest factor
|
4.3
|
|
|
7.9
|
|
|
8.9
|
|
|
10.6
|
|
|
10.1
|
|
|
9.1
|
|
||||||
Total fixed charges
|
51.8
|
|
|
57.4
|
|
|
66.5
|
|
|
65.7
|
|
|
68.5
|
|
|
86.8
|
|
||||||
Preferred stock dividends (1)
|
6.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total fixed charges and preferred stock dividends
|
$
|
57.9
|
|
|
$
|
57.4
|
|
|
$
|
66.5
|
|
|
$
|
65.7
|
|
|
$
|
68.5
|
|
|
$
|
86.8
|
|
Ratio of consolidated earnings to fixed charges
|
5.15
|
|
|
8.74
|
|
|
13.76
|
|
|
4.06
|
|
|
11.86
|
|
|
10.10
|
|
||||||
Ratio of consolidated earnings to fixed charges and preferred stock dividends
|
4.60
|
|
|
8.74
|
|
|
13.76
|
|
|
4.06
|
|
|
11.86
|
|
|
10.10
|
|
(1)
|
The preferred stock dividends amount represents pre-tax earnings required to cover dividends on preferred stock.
|
|
/s/ Alan B. Colberg
|
|
Alan B. Colberg
President, Chief Executive Officer and Director
|
|
/s/ Richard S. Dziadzio
|
|
Richard S. Dziadzio
Executive Vice President, Chief Financial Officer and Treasurer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Alan B. Colberg
|
|
Alan B. Colberg
President, Chief Executive Officer and Director
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Richard S. Dziadzio
|
|
Richard S. Dziadzio
Executive Vice President, Chief Financial Officer and Treasurer
|