x
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Delaware
|
|
001-31978
|
|
39-1126612
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
|
|
x
|
|
Accelerated filer
|
|
¨
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|
|
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|
|||
Non-accelerated filer
|
|
¨
|
|
Smaller reporting company
|
|
¨
|
|
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|
|
|
|
|
|
|
|
Emerging growth company
|
|
¨
|
Title of Each Class
|
Trading Symbol(s)
|
Name of Each Exchange on Which Registered
|
Common Stock, $0.01 Par Value
|
AIZ
|
New York Stock Exchange
|
6.50% Series D Mandatory Convertible Preferred Stock, $1.00 Par Value
|
AIZP
|
New York Stock Exchange
|
|
|
|
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|
Item
Number
|
|
Page
Number
|
|
|
|
|
|
|
1.
|
|
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||
|
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||
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|
|
|
||
|
|
|
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||
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|
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||
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|
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||
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|
|
2.
|
||
|
|
|
3.
|
||
|
|
|
4.
|
||
|
|
|
|
|
|
|
|
|
1.
|
||
|
|
|
1A.
|
||
|
|
|
2.
|
||
|
|
|
6.
|
||
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
(in millions except number of
shares and per share amounts)
|
||||||
Assets
|
|||||||
Investments:
|
|
|
|
||||
Fixed maturity securities available for sale, at fair value (amortized cost - $11,042.5 and $10,834.0 at March 31, 2019 and December 31, 2018, respectively)
|
$
|
11,834.6
|
|
|
$
|
11,257.1
|
|
Equity securities at fair value
|
388.4
|
|
|
378.8
|
|
||
Commercial mortgage loans on real estate, at amortized cost
|
758.1
|
|
|
759.6
|
|
||
Short-term investments
|
343.9
|
|
|
373.2
|
|
||
Other investments
|
658.7
|
|
|
635.2
|
|
||
Total investments
|
13,983.7
|
|
|
13,403.9
|
|
||
Cash and cash equivalents
|
1,274.2
|
|
|
1,254.0
|
|
||
Premiums and accounts receivable, net
|
1,695.5
|
|
|
1,643.5
|
|
||
Reinsurance recoverables
|
9,061.6
|
|
|
9,166.0
|
|
||
Accrued investment income
|
130.8
|
|
|
125.5
|
|
||
Deferred acquisition costs
|
5,371.5
|
|
|
5,103.0
|
|
||
Property and equipment, at cost less accumulated depreciation
|
409.8
|
|
|
392.5
|
|
||
Tax receivable
|
10.7
|
|
|
36.3
|
|
||
Goodwill
|
2,331.2
|
|
|
2,321.8
|
|
||
Value of business acquired
|
2,858.1
|
|
|
3,157.8
|
|
||
Other intangible assets, net
|
606.5
|
|
|
622.4
|
|
||
Other assets
|
644.6
|
|
|
567.5
|
|
||
Assets held in separate accounts
|
1,801.1
|
|
|
1,609.7
|
|
||
Assets of consolidated investment entities (1)
|
2,057.7
|
|
|
1,685.4
|
|
||
Total assets
|
$
|
42,237.0
|
|
|
$
|
41,089.3
|
|
Liabilities
|
|
|
|
||||
Future policy benefits and expenses
|
$
|
9,310.8
|
|
|
$
|
9,240.9
|
|
Unearned premiums
|
15,638.7
|
|
|
15,648.0
|
|
||
Claims and benefits payable
|
2,750.6
|
|
|
2,813.7
|
|
||
Commissions payable
|
336.4
|
|
|
338.6
|
|
||
Reinsurance balances payable
|
319.3
|
|
|
330.9
|
|
||
Funds held under reinsurance
|
294.0
|
|
|
272.0
|
|
||
Deferred gains on disposal of businesses
|
45.4
|
|
|
53.1
|
|
||
Accounts payable and other liabilities
|
2,461.2
|
|
|
2,187.4
|
|
||
Debt
|
2,006.6
|
|
|
2,006.0
|
|
||
Liabilities related to separate accounts
|
1,801.1
|
|
|
1,609.7
|
|
||
Liabilities of consolidated investment entities (1)
|
1,801.2
|
|
|
1,455.1
|
|
||
Total liabilities
|
36,765.3
|
|
|
35,955.4
|
|
||
Commitments and contingencies (Note 17)
|
|
|
|
||||
Stockholders’ equity
|
|
|
|
||||
6.50% Series D mandatory convertible preferred stock, par value $1.00 per share, 2,875,000 shares authorized, issued and outstanding at March 31, 2019 and December 31, 2018
|
2.9
|
|
|
2.9
|
|
||
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 161,448,903 and 161,153,454 shares issued and 61,678,749 and 61,908,979 shares outstanding at March 31, 2019 and December 31, 2018, respectively
|
1.6
|
|
|
1.6
|
|
||
Additional paid-in capital
|
4,496.0
|
|
|
4,495.6
|
|
||
Retained earnings
|
5,879.7
|
|
|
5,759.7
|
|
||
Accumulated other comprehensive income (loss)
|
103.4
|
|
|
(155.4
|
)
|
||
Treasury stock, at cost; 99,659,705 and 99,244,475 shares at March 31, 2019 and December 31, 2018, respectively
|
(5,043.0
|
)
|
|
(4,992.4
|
)
|
||
Total Assurant, Inc. stockholders’ equity
|
5,440.6
|
|
|
5,112.0
|
|
||
Non-controlling interests
|
31.1
|
|
|
21.9
|
|
||
Total equity
|
5,471.7
|
|
|
5,133.9
|
|
||
Total liabilities and equity
|
$
|
42,237.0
|
|
|
$
|
41,089.3
|
|
|
|
|
(1)
|
The following table presents information on assets and liabilities related to consolidated investment entities as of March 31, 2019 and December 31, 2018.
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
(in millions)
|
||||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
110.4
|
|
|
$
|
62.6
|
|
Investments, at fair value
|
1,909.2
|
|
|
1,576.2
|
|
||
Other receivables
|
38.1
|
|
|
46.6
|
|
||
Total assets
|
$
|
2,057.7
|
|
|
$
|
1,685.4
|
|
Liabilities
|
|
|
|
||||
Collateralized loan obligation notes, at fair value
|
1,603.6
|
|
|
1,316.7
|
|
||
Other liabilities
|
197.6
|
|
|
138.4
|
|
||
Total liabilities
|
$
|
1,801.2
|
|
|
$
|
1,455.1
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in millions except number of shares and per share amounts)
|
||||||
Revenues
|
|
|
|
||||
Net earned premiums
|
$
|
1,904.4
|
|
|
$
|
1,124.9
|
|
Fees and other income
|
328.3
|
|
|
364.5
|
|
||
Net investment income
|
166.3
|
|
|
130.2
|
|
||
Net realized gains on investments, excluding other-than-temporary impairment losses
|
29.1
|
|
|
0.5
|
|
||
Other-than-temporary impairment losses recognized in earnings
|
(0.3
|
)
|
|
—
|
|
||
Amortization of deferred gains on disposal of businesses
|
7.8
|
|
|
18.5
|
|
||
Total revenues
|
2,435.6
|
|
|
1,638.6
|
|
||
Benefits, losses and expenses
|
|
|
|
||||
Policyholder benefits
|
614.7
|
|
|
414.6
|
|
||
Amortization of deferred acquisition costs and value of business acquired
|
777.3
|
|
|
346.4
|
|
||
Underwriting, general and administrative expenses
|
800.1
|
|
|
719.6
|
|
||
Interest expense
|
26.5
|
|
|
21.5
|
|
||
Total benefits, losses and expenses
|
2,218.6
|
|
|
1,502.1
|
|
||
Income before provision for income taxes
|
217.0
|
|
|
136.5
|
|
||
Provision for income taxes
|
48.4
|
|
|
30.5
|
|
||
Net income
|
168.6
|
|
|
106.0
|
|
||
Less: Net income attributable to non-controlling interests
|
(2.9
|
)
|
|
—
|
|
||
Net income attributable to stockholders
|
165.7
|
|
|
106.0
|
|
||
Less: Preferred stock dividends
|
(4.7
|
)
|
|
—
|
|
||
Net income attributable to common stockholders
|
$
|
161.0
|
|
|
$
|
106.0
|
|
|
|
|
|
||||
Earnings Per Common Share
|
|
|
|
||||
Basic
|
$
|
2.57
|
|
|
$
|
1.99
|
|
Diluted
|
$
|
2.52
|
|
|
$
|
1.96
|
|
Share Data
|
|
|
|
||||
Weighted average common shares outstanding used in basic per common share calculations
|
62,594,828
|
|
|
53,169,358
|
|
||
Plus: Dilutive securities
|
3,183,117
|
|
|
1,020,140
|
|
||
Weighted average common shares used in diluted per common share calculations
|
65,777,945
|
|
|
54,189,498
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Net income
|
$
|
168.6
|
|
|
$
|
106.0
|
|
Other comprehensive income (loss):
|
|
|
|
||||
Change in unrealized gains on securities, net of taxes of $(69.0) and $47.8 for the three months ended March 31, 2019 and 2018, respectively
|
248.9
|
|
|
(175.2
|
)
|
||
Change in unrealized gains on derivative transactions, net of taxes of $0.2 and $(5.6) for the three months ended March 31, 2019 and 2018, respectively
|
(0.3
|
)
|
|
21.1
|
|
||
Change in other-than-temporary impairment losses, net of taxes of $0.1 and $0.9 for the three months ended March 31, 2019 and 2018, respectively
|
(0.2
|
)
|
|
(3.5
|
)
|
||
Change in foreign currency translation, net of taxes of $(0.6) and $0.5 for the three months ended March 31, 2019 and 2018, respectively
|
10.2
|
|
|
9.2
|
|
||
Amortization of pension and postretirement unrecognized net periodic benefit cost, net of taxes of $(0.1) for the three months ended March 31, 2019
|
0.2
|
|
|
—
|
|
||
Total other comprehensive income (loss)
|
258.8
|
|
|
(148.4
|
)
|
||
Total comprehensive income (loss)
|
427.4
|
|
|
(42.4
|
)
|
||
Less: Comprehensive income attributable to non-controlling interests
|
(2.9
|
)
|
|
—
|
|
||
Total comprehensive income (loss) attributable to common stockholders
|
$
|
424.5
|
|
|
$
|
(42.4
|
)
|
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
(Loss) Income
|
|
Treasury
Stock
|
|
Non-controlling Interests
|
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Balance at December 31, 2018
|
$
|
2.9
|
|
|
$
|
1.6
|
|
|
$
|
4,495.6
|
|
|
$
|
5,759.7
|
|
|
$
|
(155.4
|
)
|
|
$
|
(4,992.4
|
)
|
|
$
|
21.9
|
|
|
$
|
5,133.9
|
|
Stock plan exercises
|
—
|
|
|
—
|
|
|
(11.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11.1
|
)
|
||||||||
Stock plan compensation expense
|
—
|
|
|
—
|
|
|
11.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11.5
|
|
||||||||
Common stock dividends ($0.60 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(37.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37.4
|
)
|
||||||||
Acquisition of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(50.6
|
)
|
|
—
|
|
|
(50.6
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
165.7
|
|
|
—
|
|
|
—
|
|
|
2.9
|
|
|
168.6
|
|
||||||||
Preferred stock dividends ($1.63 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
||||||||
Change in equity of non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.6
|
)
|
|
—
|
|
|
—
|
|
|
6.3
|
|
|
2.7
|
|
||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
258.8
|
|
|
—
|
|
|
—
|
|
|
258.8
|
|
||||||||
Balance at March 31, 2019
|
$
|
2.9
|
|
|
$
|
1.6
|
|
|
$
|
4,496.0
|
|
|
$
|
5,879.7
|
|
|
$
|
103.4
|
|
|
$
|
(5,043.0
|
)
|
|
$
|
31.1
|
|
|
$
|
5,471.7
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Treasury
Stock
|
|
Non-controlling Interests
|
|
Total
|
||||||||||||||||
|
(in millions)
|
||||||||||||||||||||||||||||||
Balance at December 31, 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
|
—
|
|
|
—
|
|
|
—
|
|
|
41.4
|
|
|
(33.9
|
)
|
|
—
|
|
|
—
|
|
|
7.5
|
|
||||||||
Stock plan exercises
|
—
|
|
|
—
|
|
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.2
|
)
|
||||||||
Stock plan compensation expense
|
—
|
|
|
—
|
|
|
9.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.6
|
|
||||||||
Common stock dividends ($0.56 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(29.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29.7
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
106.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106.0
|
|
||||||||
Issuance of preferred stock
|
2.9
|
|
|
—
|
|
|
273.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
276.4
|
|
||||||||
Change in equity of non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|
0.3
|
|
||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(148.4
|
)
|
|
—
|
|
|
—
|
|
|
(148.4
|
)
|
||||||||
Balance at March 31, 2018
|
$
|
2.9
|
|
|
$
|
1.5
|
|
|
$
|
3,478.8
|
|
|
$
|
5,815.0
|
|
|
$
|
51.7
|
|
|
$
|
(4,860.1
|
)
|
|
$
|
11.2
|
|
|
$
|
4,501.0
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
|
(in millions)
|
||||||
Operating activities
|
|
|
|
||||
Net income attributable to stockholders
|
$
|
165.7
|
|
|
$
|
106.0
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Noncash revenues, expenses, gains and losses included in income:
|
|
|
|
||||
Deferred tax expense
|
36.6
|
|
|
13.5
|
|
||
Amortization of deferred gains on disposal of businesses
|
(7.8
|
)
|
|
(18.5
|
)
|
||
Depreciation and amortization
|
29.7
|
|
|
30.0
|
|
||
Net realized gains on investments
|
(29.6
|
)
|
|
(0.5
|
)
|
||
Stock based compensation expense
|
11.5
|
|
|
9.6
|
|
||
Income from real estate joint ventures
|
(3.3
|
)
|
|
(3.6
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Change in insurance policy reserves and expenses
|
34.9
|
|
|
(579.4
|
)
|
||
Change in premiums and accounts receivable
|
(43.3
|
)
|
|
4.8
|
|
||
Change in reinsurance recoverable
|
200.9
|
|
|
479.5
|
|
||
Change in reinsurance balance payable
|
(13.6
|
)
|
|
(20.4
|
)
|
||
Change in funds withheld under reinsurance
|
21.2
|
|
|
(4.8
|
)
|
||
Change in deferred acquisition costs and value of business acquired
|
(158.0
|
)
|
|
(43.3
|
)
|
||
Change in other assets and other liabilities
|
17.3
|
|
|
(202.3
|
)
|
||
Change in taxes payable
|
25.7
|
|
|
94.0
|
|
||
Other
|
(41.2
|
)
|
|
59.7
|
|
||
Net cash provided by (used in) operating activities
|
246.7
|
|
|
(75.7
|
)
|
||
Investing activities
|
|
|
|
||||
Sales of:
|
|
|
|
||||
Fixed maturity securities available for sale
|
597.6
|
|
|
742.5
|
|
||
Equity securities
|
41.6
|
|
|
42.3
|
|
||
Other invested assets
|
10.2
|
|
|
31.8
|
|
||
Maturities, calls, prepayments, and scheduled redemption of:
|
|
|
|
||||
Fixed maturity securities available for sale
|
135.1
|
|
|
156.7
|
|
||
Commercial mortgage loans on real estate
|
14.0
|
|
|
56.4
|
|
||
Purchases of:
|
|
|
|
||||
Fixed maturity securities available for sale
|
(873.0
|
)
|
|
(723.2
|
)
|
||
Equity securities
|
(32.8
|
)
|
|
(39.2
|
)
|
||
Commercial mortgage loans on real estate
|
(10.7
|
)
|
|
(70.4
|
)
|
||
Other invested assets
|
(11.2
|
)
|
|
(18.5
|
)
|
||
Property and equipment and other
|
(32.4
|
)
|
|
(16.5
|
)
|
||
Consolidated investment entities (1):
|
|
|
|
||||
Purchases of investments
|
(489.3
|
)
|
|
(301.5
|
)
|
||
Sale of investments
|
172.8
|
|
|
106.1
|
|
||
Change in short-term investments
|
30.6
|
|
|
116.0
|
|
||
Other
|
0.3
|
|
|
(3.4
|
)
|
||
Net cash (used in) provided by investing activities
|
(447.2
|
)
|
|
79.1
|
|
||
Financing activities
|
|
|
|
||||
Issuance of mandatory convertible preferred stock, net of issuance costs (2)
|
—
|
|
|
276.4
|
|
||
Issuance of debt, net of issuance costs (3)
|
—
|
|
|
1,285.8
|
|
|
|
|
Repayment of debt (3)
|
—
|
|
|
(350.0
|
)
|
||
Issuance of collateralized loan obligation notes (1)
|
418.5
|
|
|
—
|
|
||
Issuance of debt for consolidated investment entities (1)
|
189.1
|
|
|
156.6
|
|
||
Repayment of debt for consolidated investment entities (1)
|
(317.4
|
)
|
|
—
|
|
||
Acquisition of common stock
|
(50.0
|
)
|
|
(7.0
|
)
|
||
Common stock dividends paid
|
(37.4
|
)
|
|
(29.7
|
)
|
||
Preferred stock dividends paid
|
(4.7
|
)
|
|
—
|
|
||
Withholding on stock based compensation
|
13.6
|
|
|
6.6
|
|
||
Non-controlling interest
|
9.2
|
|
|
0.3
|
|
||
Other
|
—
|
|
|
5.0
|
|
||
Net cash provided by financing activities
|
220.9
|
|
|
1,344.0
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(0.2
|
)
|
|
(2.2
|
)
|
||
Change in cash and cash equivalents
|
20.2
|
|
|
1,345.2
|
|
||
Cash and cash equivalents at beginning of period
|
1,254.0
|
|
|
996.8
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,274.2
|
|
|
$
|
2,342.0
|
|
(1)
|
Relates to cash flows from our variable interest entities. Refer to Note 8 for further information.
|
(2)
|
Refer to Note 14 for additional information.
|
(3)
|
Refer to Note 11 for additional information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount
|
||
Value of business acquired (1)
|
$
|
3,973.0
|
|
|
|
||
Finite life (1):
|
|
||
Customer related intangibles (distribution network)
|
$
|
390.3
|
|
Technology based intangibles
|
57.8
|
|
|
Total finite life other intangible assets
|
448.1
|
|
|
Indefinite life:
|
|
||
Contract based intangibles
|
11.6
|
|
|
Total other intangible assets
|
$
|
459.7
|
|
(1)
|
Refer to future estimated amortization table below for the amortization pattern of VOBA and other intangible assets with finite lives.
|
Year
|
VOBA
|
|
Other Intangible Assets (with Finite Lives)
|
||||
April 1 - December 31, 2019
|
$
|
785.3
|
|
|
$
|
14.0
|
|
2020
|
822.0
|
|
|
26.2
|
|
||
2021
|
576.0
|
|
|
31.0
|
|
||
2022
|
353.8
|
|
|
35.0
|
|
||
2023
|
218.8
|
|
|
36.1
|
|
||
2024
|
79.0
|
|
|
36.6
|
|
||
Thereafter
|
7.5
|
|
|
254.2
|
|
||
Total
|
$
|
2,842.4
|
|
|
$
|
433.1
|
|
|
|
|
•
|
Global Housing: provides lender-placed homeowners insurance; renters insurance and related products (referred to as “Multifamily Housing”); and manufactured housing and flood insurance and other specialty products (referred to as “Specialty and Other”);
|
•
|
Global Lifestyle: provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance (referred to as “Global Financial Services and Other”);
|
•
|
Global Preneed: provides pre-funded funeral insurance and annuity products; and
|
•
|
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 businesses through reinsurance agreements, expenses related to the acquisition of TWG, foreign currency gains (losses) from remeasurement of monetary assets and liabilities, the gain or loss on the sale of businesses and other unusual or infrequent items. Additionally, the Corporate and Other segment includes amounts related to the runoff of the Assurant Health business.
|
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earned premiums
|
$
|
460.1
|
|
|
$
|
1,428.5
|
|
|
$
|
15.8
|
|
|
$
|
—
|
|
|
$
|
1,904.4
|
|
Fees and other income
|
39.9
|
|
|
253.1
|
|
|
33.3
|
|
|
2.0
|
|
|
328.3
|
|
|||||
Net investment income
|
25.4
|
|
|
58.9
|
|
|
69.1
|
|
|
12.9
|
|
|
166.3
|
|
|||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
28.8
|
|
|
28.8
|
|
|||||
Amortization of deferred gains on disposal of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
7.8
|
|
|
7.8
|
|
|||||
Total revenues
|
525.4
|
|
|
1,740.5
|
|
|
118.2
|
|
|
51.5
|
|
|
2,435.6
|
|
|||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits
|
198.9
|
|
|
347.2
|
|
|
68.6
|
|
|
—
|
|
|
614.7
|
|
|||||
Amortization of deferred acquisition costs and value of business acquired
|
53.9
|
|
|
705.8
|
|
|
17.6
|
|
|
—
|
|
|
777.3
|
|
|||||
Underwriting, general and administrative expenses
|
180.7
|
|
|
555.8
|
|
|
16.9
|
|
|
46.7
|
|
|
800.1
|
|
|||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
26.5
|
|
|
26.5
|
|
|||||
Total benefits, losses and expenses
|
433.5
|
|
|
1,608.8
|
|
|
103.1
|
|
|
73.2
|
|
|
2,218.6
|
|
|||||
Segment income (loss) before provision (benefit) for income tax
|
91.9
|
|
|
131.7
|
|
|
15.1
|
|
|
(21.7
|
)
|
|
217.0
|
|
|||||
Provision (benefit) for income taxes
|
19.2
|
|
|
31.1
|
|
|
3.3
|
|
|
(5.2
|
)
|
|
48.4
|
|
|||||
Segment income (loss) after taxes
|
72.7
|
|
|
100.6
|
|
|
11.8
|
|
|
(16.5
|
)
|
|
168.6
|
|
|||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.9
|
)
|
|
(2.9
|
)
|
|||||
Net income (loss) attributable to stockholders
|
72.7
|
|
|
100.6
|
|
|
11.8
|
|
|
(19.4
|
)
|
|
165.7
|
|
|||||
Less: Preferred stock dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.7
|
)
|
|
(4.7
|
)
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
72.7
|
|
|
$
|
100.6
|
|
|
$
|
11.8
|
|
|
$
|
(24.1
|
)
|
|
$
|
161.0
|
|
|
As of March 31, 2019
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment assets:
|
$
|
3,937.1
|
|
|
$
|
21,635.0
|
|
|
$
|
7,135.5
|
|
|
$
|
9,529.4
|
|
|
$
|
42,237.0
|
|
|
|
|
|
Three Months Ended March 31, 2018
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Global Housing
|
|
Global Lifestyle
|
|
Global Preneed
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earned premiums
|
$
|
436.4
|
|
|
$
|
673.6
|
|
|
$
|
14.6
|
|
|
$
|
0.3
|
|
|
$
|
1,124.9
|
|
Fees and other income
|
86.7
|
|
|
244.9
|
|
|
31.6
|
|
|
1.3
|
|
|
364.5
|
|
|||||
Net investment income
|
20.2
|
|
|
32.1
|
|
|
65.8
|
|
|
12.1
|
|
|
130.2
|
|
|||||
Net realized gains on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
0.5
|
|
|||||
Amortization of deferred gains on disposal of businesses
|
—
|
|
|
—
|
|
|
—
|
|
|
18.5
|
|
|
18.5
|
|
|||||
Total revenues
|
543.3
|
|
|
950.6
|
|
|
112.0
|
|
|
32.7
|
|
|
1,638.6
|
|
|||||
Benefits, losses and expenses
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits
|
169.1
|
|
|
181.6
|
|
|
66.7
|
|
|
(2.8
|
)
|
|
414.6
|
|
|||||
Amortization of deferred acquisition costs and value of business acquired
|
49.6
|
|
|
280.3
|
|
|
16.5
|
|
|
—
|
|
|
346.4
|
|
|||||
Underwriting, general and administrative expenses
|
234.9
|
|
|
415.8
|
|
|
16.2
|
|
|
52.7
|
|
|
719.6
|
|
|||||
Interest expense
|
—
|
|
|
—
|
|
|
—
|
|
|
21.5
|
|
|
21.5
|
|
|||||
Total benefits, losses and expenses
|
453.6
|
|
|
877.7
|
|
|
99.4
|
|
|
71.4
|
|
|
1,502.1
|
|
|||||
Segment income (loss) before provision for income tax
|
89.7
|
|
|
72.9
|
|
|
12.6
|
|
|
(38.7
|
)
|
|
136.5
|
|
|||||
Provision (benefit) for income taxes
|
18.5
|
|
|
17.1
|
|
|
2.8
|
|
|
(7.9
|
)
|
|
30.5
|
|
|||||
Segment income (loss) after taxes
|
$
|
71.2
|
|
|
$
|
55.8
|
|
|
$
|
9.8
|
|
|
$
|
(30.8
|
)
|
|
$
|
106.0
|
|
|
|
|
|
|
|
|
March 31, 2019
|
||||||||||||||||||
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
OTTI in
AOCI (1)
|
||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government agencies and authorities
|
$
|
308.0
|
|
|
$
|
5.3
|
|
|
$
|
(0.6
|
)
|
|
$
|
312.7
|
|
|
$
|
—
|
|
States, municipalities and political subdivisions
|
236.5
|
|
|
21.8
|
|
|
(0.1
|
)
|
|
258.2
|
|
|
—
|
|
|||||
Foreign governments
|
877.7
|
|
|
84.1
|
|
|
(0.7
|
)
|
|
961.1
|
|
|
—
|
|
|||||
Asset-backed
|
485.9
|
|
|
0.7
|
|
|
(4.1
|
)
|
|
482.5
|
|
|
—
|
|
|||||
Commercial mortgage-backed
|
206.8
|
|
|
6.6
|
|
|
(1.6
|
)
|
|
211.8
|
|
|
—
|
|
|||||
Residential mortgage-backed
|
1,242.1
|
|
|
33.0
|
|
|
(5.8
|
)
|
|
1,269.3
|
|
|
4.4
|
|
|||||
U.S. corporate
|
5,587.2
|
|
|
490.1
|
|
|
(12.0
|
)
|
|
6,065.3
|
|
|
14.4
|
|
|||||
Foreign corporate
|
2,098.3
|
|
|
178.3
|
|
|
(2.9
|
)
|
|
2,273.7
|
|
|
—
|
|
|||||
Total fixed maturity securities
|
$
|
11,042.5
|
|
|
$
|
819.9
|
|
|
$
|
(27.8
|
)
|
|
$
|
11,834.6
|
|
|
$
|
18.8
|
|
|
|||||||||||||||||||
|
December 31, 2018
|
||||||||||||||||||
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair Value
|
|
OTTI in
AOCI (1)
|
||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and government agencies and authorities
|
$
|
381.4
|
|
|
$
|
4.4
|
|
|
$
|
(1.2
|
)
|
|
$
|
384.6
|
|
|
$
|
—
|
|
States, municipalities and political subdivisions
|
238.9
|
|
|
17.6
|
|
|
(0.3
|
)
|
|
256.2
|
|
|
—
|
|
|||||
Foreign governments
|
856.3
|
|
|
58.8
|
|
|
(3.0
|
)
|
|
912.1
|
|
|
—
|
|
|||||
Asset-backed
|
513.6
|
|
|
0.5
|
|
|
(9.6
|
)
|
|
504.5
|
|
|
—
|
|
|||||
Commercial mortgage-backed
|
79.1
|
|
|
2.2
|
|
|
(1.6
|
)
|
|
79.7
|
|
|
—
|
|
|||||
Residential mortgage-backed
|
1,399.1
|
|
|
21.5
|
|
|
(14.8
|
)
|
|
1,405.8
|
|
|
5.0
|
|
|||||
U.S. corporate
|
5,337.0
|
|
|
315.7
|
|
|
(59.7
|
)
|
|
5,593.0
|
|
|
14.1
|
|
|||||
Foreign corporate
|
2,028.6
|
|
|
110.7
|
|
|
(18.1
|
)
|
|
2,121.2
|
|
|
—
|
|
|||||
Total fixed maturity securities
|
$
|
10,834.0
|
|
|
$
|
531.4
|
|
|
$
|
(108.3
|
)
|
|
$
|
11,257.1
|
|
|
$
|
19.1
|
|
(1)
|
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
|
$
|
334.7
|
|
|
$
|
336.5
|
|
Due after one year through five years
|
2,724.5
|
|
|
2,783.3
|
|
||
Due after five years through ten years
|
2,290.5
|
|
|
2,406.6
|
|
||
Due after ten years
|
3,758.0
|
|
|
4,344.6
|
|
||
Total
|
9,107.7
|
|
|
9,871.0
|
|
||
Asset-backed
|
485.9
|
|
|
482.5
|
|
||
Commercial mortgage-backed
|
206.8
|
|
|
211.8
|
|
||
Residential mortgage-backed
|
1,242.1
|
|
|
1,269.3
|
|
||
Total
|
$
|
11,042.5
|
|
|
$
|
11,834.6
|
|
|
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Net realized gains (losses) related to sales and other:
|
|
|
|
||||
Fixed maturity securities
|
$
|
(0.3
|
)
|
|
$
|
(2.6
|
)
|
Equity securities (1)
|
29.9
|
|
|
2.2
|
|
||
Other investments
|
(0.1
|
)
|
|
1.3
|
|
||
Consolidated investment entities (2)
|
(0.4
|
)
|
|
(0.4
|
)
|
||
Total net realized gains related to sales and other
|
29.1
|
|
|
0.5
|
|
||
Net realized losses related to other-than-temporary impairments:
|
|
|
|
||||
Fixed maturity securities
|
(0.3
|
)
|
|
—
|
|
||
Total net realized gains
|
$
|
28.8
|
|
|
$
|
0.5
|
|
(1)
|
Three months ended March 31, 2019 and 2018 includes $10.4 million and $7.8 million, respectively, of gains on equity investment holdings accounted for under the measurement alternative.
|
(2)
|
Consists of net realized gains (losses) from the change in fair value of the Company’s direct investment in collateralized loan obligations (“CLOs”). Refer to Note 8 for additional information.
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Net gains recognized on equity securities
|
$
|
29.9
|
|
|
$
|
2.2
|
|
Less: Net realized gains (losses) related to sales of equity securities
|
(1.0
|
)
|
|
2.0
|
|
||
Total net unrealized gains on equity securities held
|
$
|
30.9
|
|
|
$
|
0.2
|
|
|
March 31, 2019
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 Months or More
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government and government agencies and authorities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
72.8
|
|
|
$
|
(0.6
|
)
|
|
$
|
72.8
|
|
|
$
|
(0.6
|
)
|
States, municipalities and political subdivisions
|
—
|
|
|
—
|
|
|
3.3
|
|
|
(0.1
|
)
|
|
3.3
|
|
|
(0.1
|
)
|
||||||
Foreign governments
|
88.5
|
|
|
(0.7
|
)
|
|
—
|
|
|
—
|
|
|
88.5
|
|
|
(0.7
|
)
|
||||||
Asset-backed
|
282.1
|
|
|
(3.7
|
)
|
|
47.5
|
|
|
(0.4
|
)
|
|
329.6
|
|
|
(4.1
|
)
|
||||||
Commercial mortgage-backed
|
—
|
|
|
—
|
|
|
20.0
|
|
|
(1.6
|
)
|
|
20.0
|
|
|
(1.6
|
)
|
||||||
Residential mortgage-backed
|
18.6
|
|
|
(0.1
|
)
|
|
346.2
|
|
|
(5.7
|
)
|
|
364.8
|
|
|
(5.8
|
)
|
||||||
U.S. corporate
|
232.8
|
|
|
(6.0
|
)
|
|
206.8
|
|
|
(6.0
|
)
|
|
439.6
|
|
|
(12.0
|
)
|
||||||
Foreign corporate
|
102.8
|
|
|
(1.4
|
)
|
|
69.6
|
|
|
(1.5
|
)
|
|
172.4
|
|
|
(2.9
|
)
|
||||||
Total fixed maturity securities
|
$
|
724.8
|
|
|
$
|
(11.9
|
)
|
|
$
|
766.2
|
|
|
$
|
(15.9
|
)
|
|
$
|
1,491.0
|
|
|
$
|
(27.8
|
)
|
|
|
|
|
December 31, 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
|
$
|
11.2
|
|
|
$
|
(0.1
|
)
|
|
$
|
89.5
|
|
|
$
|
(1.1
|
)
|
|
$
|
100.7
|
|
|
$
|
(1.2
|
)
|
States, municipalities and political subdivisions
|
31.5
|
|
|
(0.1
|
)
|
|
3.1
|
|
|
(0.2
|
)
|
|
34.6
|
|
|
(0.3
|
)
|
||||||
Foreign governments
|
136.4
|
|
|
(2.8
|
)
|
|
9.2
|
|
|
(0.2
|
)
|
|
145.6
|
|
|
(3.0
|
)
|
||||||
Asset-backed
|
370.6
|
|
|
(9.6
|
)
|
|
—
|
|
|
—
|
|
|
370.6
|
|
|
(9.6
|
)
|
||||||
Commercial mortgage-backed
|
29.4
|
|
|
(0.7
|
)
|
|
12.4
|
|
|
(0.9
|
)
|
|
41.8
|
|
|
(1.6
|
)
|
||||||
Residential mortgage-backed
|
378.2
|
|
|
(3.7
|
)
|
|
309.6
|
|
|
(11.1
|
)
|
|
687.8
|
|
|
(14.8
|
)
|
||||||
U.S. corporate
|
1,860.4
|
|
|
(49.5
|
)
|
|
173.1
|
|
|
(10.2
|
)
|
|
2,033.5
|
|
|
(59.7
|
)
|
||||||
Foreign corporate
|
706.6
|
|
|
(12.9
|
)
|
|
149.5
|
|
|
(5.2
|
)
|
|
856.1
|
|
|
(18.1
|
)
|
||||||
Total fixed maturity securities
|
$
|
3,524.3
|
|
|
$
|
(79.4
|
)
|
|
$
|
746.4
|
|
|
$
|
(28.9
|
)
|
|
$
|
4,270.7
|
|
|
$
|
(108.3
|
)
|
|
|
|
|
March 31, 2019
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Investments:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
110.4
|
|
|
$
|
110.4
|
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
Corporate debt securities
|
1,787.8
|
|
|
—
|
|
|
1,787.8
|
|
|
—
|
|
||||
Real estate fund
|
121.4
|
|
|
—
|
|
|
—
|
|
|
121.4
|
|
||||
Total financial assets
|
$
|
2,019.6
|
|
|
$
|
110.4
|
|
|
$
|
1,787.8
|
|
|
$
|
121.4
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Collateralized loan obligation notes
|
$
|
1,603.6
|
|
|
$
|
—
|
|
|
$
|
1,603.6
|
|
|
$
|
—
|
|
Total financial liabilities
|
$
|
1,603.6
|
|
|
$
|
—
|
|
|
$
|
1,603.6
|
|
|
$
|
—
|
|
|
|
|
|
December 31, 2018
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
||||||||
Investments:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
62.6
|
|
|
$
|
62.6
|
|
(1)
|
$
|
—
|
|
|
$
|
—
|
|
Corporate debt securities
|
1,464.2
|
|
|
—
|
|
|
1,464.2
|
|
|
—
|
|
||||
Real estate fund
|
112.0
|
|
|
—
|
|
|
—
|
|
|
112.0
|
|
||||
Total financial assets
|
$
|
1,638.8
|
|
|
$
|
62.6
|
|
|
$
|
1,464.2
|
|
|
$
|
112.0
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
||||||||
Collateralized loan obligation notes
|
$
|
1,316.7
|
|
|
$
|
—
|
|
|
$
|
1,316.7
|
|
|
$
|
—
|
|
Total financial liabilities
|
$
|
1,316.7
|
|
|
$
|
—
|
|
|
$
|
1,316.7
|
|
|
$
|
—
|
|
(1)
|
Amounts consist of money market funds.
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Balance, beginning of period
|
$
|
112.0
|
|
|
$
|
84.7
|
|
Total income included in earnings
|
9.4
|
|
|
2.1
|
|
||
Balance, end of period
|
$
|
121.4
|
|
|
$
|
86.8
|
|
|
|
|
•
|
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access.
|
•
|
Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset or liability. The observable inputs are used in valuation models to calculate the fair value for the asset or liability.
|
•
|
Level 3 inputs are unobservable but are significant to the fair value measurement for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
|
|
|
|
|
March 31, 2019
|
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government agencies and authorities
|
$
|
312.7
|
|
|
$
|
—
|
|
|
$
|
312.7
|
|
|
$
|
—
|
|
|
States, municipalities and political subdivisions
|
258.2
|
|
|
—
|
|
|
258.2
|
|
|
—
|
|
|
||||
Foreign governments
|
961.1
|
|
|
0.5
|
|
|
960.6
|
|
|
—
|
|
|
||||
Asset-backed
|
482.5
|
|
|
—
|
|
|
457.6
|
|
|
24.9
|
|
|
||||
Commercial mortgage-backed
|
211.8
|
|
|
—
|
|
|
170.4
|
|
|
41.4
|
|
|
||||
Residential mortgage-backed
|
1,269.3
|
|
|
—
|
|
|
1,269.3
|
|
|
—
|
|
|
||||
U.S. corporate
|
6,065.3
|
|
|
—
|
|
|
6,053.4
|
|
|
11.9
|
|
|
||||
Foreign corporate
|
2,273.7
|
|
|
—
|
|
|
2,221.2
|
|
|
52.5
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
45.7
|
|
|
45.7
|
|
|
—
|
|
|
—
|
|
|
||||
Common stocks
|
20.7
|
|
|
20.0
|
|
|
0.7
|
|
|
—
|
|
|
||||
Non-redeemable preferred stocks
|
322.0
|
|
|
—
|
|
|
319.8
|
|
|
2.2
|
|
|
||||
Short-term investments
|
305.3
|
|
|
189.4
|
|
(2)
|
115.9
|
|
|
—
|
|
|
||||
Other investments
|
229.9
|
|
|
65.9
|
|
(1)
|
163.6
|
|
(3)
|
0.4
|
|
(4)
|
||||
Cash equivalents
|
507.6
|
|
|
503.6
|
|
(2)
|
4.0
|
|
(3)
|
—
|
|
|
||||
Other receivables
|
5.0
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
(6)
|
||||
Other assets
|
1.3
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
(5)
|
||||
Assets held in separate accounts
|
1,766.9
|
|
|
1,587.4
|
|
(1)
|
179.5
|
|
(3)
|
—
|
|
|
||||
Total financial assets
|
$
|
15,039.0
|
|
|
$
|
2,412.5
|
|
|
$
|
12,486.9
|
|
|
$
|
139.6
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
$
|
108.0
|
|
|
$
|
66.0
|
|
(1)
|
$
|
0.7
|
|
(5)
|
$
|
41.3
|
|
(6)
|
Liabilities related to separate accounts
|
1,766.9
|
|
|
1,587.4
|
|
(1)
|
179.5
|
|
(3)
|
—
|
|
|
||||
Total financial liabilities
|
$
|
1,874.9
|
|
|
$
|
1,653.4
|
|
|
$
|
180.2
|
|
|
$
|
41.3
|
|
|
|
|
|
|
December 31, 2018
|
|
||||||||||||||
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities:
|
|
|
|
|
|
|
|
|
||||||||
U.S. government and government agencies and authorities
|
$
|
384.6
|
|
|
$
|
—
|
|
|
$
|
384.6
|
|
|
$
|
—
|
|
|
States, municipalities and political subdivisions
|
256.2
|
|
|
—
|
|
|
256.2
|
|
|
—
|
|
|
||||
Foreign governments
|
912.1
|
|
|
0.5
|
|
|
911.6
|
|
|
—
|
|
|
||||
Asset-backed
|
504.5
|
|
|
—
|
|
|
504.5
|
|
|
—
|
|
|
||||
Commercial mortgage-backed
|
79.7
|
|
|
—
|
|
|
40.8
|
|
|
38.9
|
|
|
||||
Residential mortgage-backed
|
1,405.8
|
|
|
—
|
|
|
1,405.8
|
|
|
—
|
|
|
||||
U.S. corporate
|
5,593.0
|
|
|
—
|
|
|
5,580.3
|
|
|
12.7
|
|
|
||||
Foreign corporate
|
2,121.2
|
|
|
—
|
|
|
2,071.7
|
|
|
49.5
|
|
|
||||
Equity securities:
|
|
|
|
|
|
|
|
|
||||||||
Mutual funds
|
45.0
|
|
|
45.0
|
|
|
—
|
|
|
—
|
|
|
||||
Common stocks
|
15.3
|
|
|
14.6
|
|
|
0.7
|
|
|
—
|
|
|
||||
Non-redeemable preferred stocks
|
318.5
|
|
|
—
|
|
|
316.3
|
|
|
2.2
|
|
|
||||
Short-term investments
|
336.0
|
|
|
188.9
|
|
(2)
|
147.1
|
|
|
—
|
|
|
||||
Other investments
|
224.9
|
|
|
62.9
|
|
(1)
|
161.5
|
|
(3)
|
0.5
|
|
(4)
|
||||
Cash equivalents
|
527.7
|
|
|
523.6
|
|
(2)
|
4.1
|
|
(3)
|
—
|
|
|
||||
Other receivables
|
5.0
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
(6)
|
||||
Other assets
|
2.6
|
|
|
—
|
|
|
—
|
|
|
2.6
|
|
(5)
|
||||
Assets held in separate accounts
|
1,575.7
|
|
|
1,400.1
|
|
(1)
|
175.6
|
|
(3)
|
—
|
|
|
||||
Total financial assets
|
$
|
14,307.8
|
|
|
$
|
2,235.6
|
|
|
$
|
11,960.8
|
|
|
$
|
111.4
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Other liabilities
|
$
|
104.8
|
|
|
$
|
62.9
|
|
(1)
|
$
|
0.7
|
|
(5)
|
$
|
41.2
|
|
(6)
|
Liabilities related to separate accounts
|
1,575.7
|
|
|
1,400.1
|
|
(1)
|
175.6
|
|
(3)
|
—
|
|
|
||||
Total financial liabilities
|
$
|
1,680.5
|
|
|
$
|
1,463.0
|
|
|
$
|
176.3
|
|
|
$
|
41.2
|
|
|
(1)
|
Primarily includes mutual funds and related obligations.
|
(2)
|
Primarily includes money market funds.
|
(3)
|
Primarily includes fixed maturity securities and related obligations.
|
(4)
|
Primarily includes fixed maturity securities and other derivatives.
|
(5)
|
Primarily includes other derivative assets and liabilities.
|
(6)
|
Primarily includes contingent consideration receivables/liabilities related to business combinations and dispositions and derivatives.
|
|
|
|
|
March 31, 2019
|
||||||||||||||||||
|
|
|
Fair Value
|
||||||||||||||||
|
Carrying
Value
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial mortgage loans on real estate
|
$
|
758.1
|
|
|
$
|
760.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
760.6
|
|
Other investments
|
141.9
|
|
|
141.9
|
|
|
33.6
|
|
|
—
|
|
|
108.3
|
|
|||||
Other assets
|
42.4
|
|
|
42.4
|
|
|
—
|
|
|
—
|
|
|
42.4
|
|
|||||
Total financial assets
|
$
|
942.4
|
|
|
$
|
944.9
|
|
|
$
|
33.6
|
|
|
$
|
—
|
|
|
$
|
911.3
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)
|
$
|
567.6
|
|
|
$
|
556.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
556.7
|
|
Funds withheld under reinsurance
|
294.0
|
|
|
294.0
|
|
|
294.0
|
|
|
—
|
|
|
—
|
|
|||||
Debt
|
2,006.6
|
|
|
2,097.3
|
|
|
—
|
|
|
2,097.3
|
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
2,868.2
|
|
|
$
|
2,948.0
|
|
|
$
|
294.0
|
|
|
$
|
2,097.3
|
|
|
$
|
556.7
|
|
|
|||||||||||||||||||
|
December 31, 2018
|
||||||||||||||||||
|
|
|
Fair Value
|
||||||||||||||||
|
Carrying
Value
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial mortgage loans on real estate
|
$
|
759.6
|
|
|
$
|
735.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
735.1
|
|
Other investments
|
124.9
|
|
|
124.9
|
|
|
33.9
|
|
|
—
|
|
|
91.0
|
|
|||||
Other assets
|
43.0
|
|
|
43.0
|
|
|
—
|
|
|
—
|
|
|
43.0
|
|
|||||
Total financial assets
|
$
|
927.5
|
|
|
$
|
903.0
|
|
|
$
|
33.9
|
|
|
$
|
—
|
|
|
$
|
869.1
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1)
|
$
|
570.6
|
|
|
$
|
556.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
556.8
|
|
Funds withheld under reinsurance
|
272.0
|
|
|
272.0
|
|
|
272.0
|
|
|
—
|
|
|
—
|
|
|||||
Debt
|
2,006.0
|
|
|
2,058.7
|
|
|
—
|
|
|
2,058.7
|
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
2,848.6
|
|
|
$
|
2,887.5
|
|
|
$
|
272.0
|
|
|
$
|
2,058.7
|
|
|
$
|
556.8
|
|
(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 Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Claims and benefits payable, at beginning of period
|
$
|
2,813.7
|
|
|
$
|
3,782.2
|
|
Less: Reinsurance ceded and other
|
(2,053.7
|
)
|
|
(3,193.3
|
)
|
||
Net claims and benefits payable, at beginning of period
|
760.0
|
|
|
588.9
|
|
||
Incurred losses and loss adjustment expenses related to:
|
|
|
|
||||
Current year
|
645.3
|
|
|
440.4
|
|
||
Prior years
|
(30.4
|
)
|
|
(24.1
|
)
|
||
Total incurred losses and loss adjustment expenses
|
614.9
|
|
|
416.3
|
|
||
Paid losses and loss adjustment expenses related to:
|
|
|
|
||||
Current year
|
311.7
|
|
|
213.5
|
|
||
Prior years
|
300.0
|
|
|
239.3
|
|
||
Total paid losses and loss adjustment expenses
|
611.7
|
|
|
452.8
|
|
||
Net claims and benefits payable, at end of period
|
763.2
|
|
|
552.4
|
|
||
Plus: Reinsurance ceded and other (1)
|
1,987.4
|
|
|
2,642.4
|
|
||
Claims and benefits payable, at end of period (1) (2)
|
$
|
2,750.6
|
|
|
$
|
3,194.8
|
|
(1)
|
Includes reinsurance recoverables and claims and benefits payable of $85.7 million and $121.8 million as of March 31, 2019 and 2018, respectively, which was ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program.
|
(2)
|
Claims and benefits payable and related reinsurance ceded were reduced by $730.0 million on December 3, 2018 as result of the sale of Time Insurance Company, a legal entity associated with the previously exited Assurant Health business.
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||
|
Principal Amount
|
|
Carrying Value
|
||||||||
Floating Rate Senior Notes due March 2021 (1)
|
$
|
300.0
|
|
|
$
|
298.2
|
|
|
$
|
298.1
|
|
4.00% Senior Notes due March 2023
|
350.0
|
|
|
348.2
|
|
|
348.1
|
|
|||
4.20% Senior Notes due September 2023
|
300.0
|
|
|
296.9
|
|
|
296.8
|
|
|||
4.90% Senior Notes due March 2028
|
300.0
|
|
|
297.7
|
|
|
297.6
|
|
|||
6.75% Senior Notes due February 2034
|
375.0
|
|
|
371.0
|
|
|
370.9
|
|
|||
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2)
|
400.0
|
|
|
394.6
|
|
|
394.5
|
|
|||
Total debt
|
|
|
$
|
2,006.6
|
|
|
$
|
2,006.0
|
|
(1)
|
Bears floating interest at a rate equal to three-month LIBOR plus 1.25%.
|
(2)
|
Bears a 7.00% annual interest rate from March 2018 to March 2028 and annual interest rate equal to three-month LIBOR plus 4.135% thereafter.
|
•
|
2021 Senior Notes: The first series of senior notes is $300.0 million in principal amount, bears floating interest rate equal to three-month LIBOR plus 1.25% (4.06% as of March 31, 2019) and is payable in a single installment due March 2021 (“2021 Senior Notes”). Interest on the 2021 Senior Notes is payable quarterly. Commencing on or after March 2019, the Company may redeem the 2021 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
|
•
|
2023 Senior Notes: The second series of senior notes is $300.0 million in principal amount, bears interest at 4.20% per year, is payable in a single installment due September 2023 and was issued at a 0.233% discount (“2023 Senior Notes”). Interest on the 2023 Senior Notes is payable semi-annually. Prior to August 2023, the Company may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
|
•
|
2028 Senior Notes: The third series of senior notes is $300.0 million in principal amount, bears interest at 4.90% per year, is payable in a single installment due March 2028 and was issued at a 0.383% discount (“2028 Senior Notes”). Interest on the 2028 Senior Notes is payable semi-annually. Prior to December 2027, the Company may redeem the 2028 Senior Notes at any time in whole or from time to time in part of a make-whole premium plus accrued and unpaid interest. On or after that date, the Company may redeem the 2028 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
|
|
|
|
|
|
Rating Agencies
|
|
|
||
Rating Levels
|
|
Moody’s (1)
|
|
S&P (1)
|
|
Interest Rate Increase (2)
|
1
|
|
Ba1
|
|
BB+
|
|
25 basis points
|
2
|
|
Ba2
|
|
BB
|
|
50 basis points
|
3
|
|
Ba3
|
|
BB-
|
|
75 basis points
|
4
|
|
B1 or below
|
|
B+ or below
|
|
100 basis points
|
(1)
|
Including the equivalent ratings of any substitute rating agency.
|
(2)
|
Applies to each rating agency individually.
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||
|
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, 2018
|
$
|
(375.6
|
)
|
|
$
|
301.0
|
|
|
$
|
18.4
|
|
|
$
|
15.1
|
|
|
$
|
(114.3
|
)
|
|
$
|
(155.4
|
)
|
Change in accumulated other comprehensive (loss) income before reclassifications
|
10.2
|
|
|
247.3
|
|
|
0.3
|
|
|
(0.2
|
)
|
|
—
|
|
|
257.6
|
|
||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
—
|
|
|
1.6
|
|
|
(0.6
|
)
|
|
—
|
|
|
0.2
|
|
|
1.2
|
|
||||||
Net current-period other comprehensive income (loss)
|
10.2
|
|
|
248.9
|
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
0.2
|
|
|
258.8
|
|
||||||
Balance at March 31, 2019
|
$
|
(365.4
|
)
|
|
$
|
549.9
|
|
|
$
|
18.1
|
|
|
$
|
14.9
|
|
|
$
|
(114.1
|
)
|
|
$
|
103.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended March 31, 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
|
9.2
|
|
|
(177.9
|
)
|
|
21.1
|
|
|
(3.5
|
)
|
|
—
|
|
|
(151.1
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive (loss) income
|
—
|
|
|
2.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
||||||
Net current-period other comprehensive income (loss)
|
9.2
|
|
|
(175.2
|
)
|
|
21.1
|
|
|
(3.5
|
)
|
|
—
|
|
|
(148.4
|
)
|
||||||
Cumulative effect of change in accounting principles (1)
|
—
|
|
|
(33.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(33.9
|
)
|
||||||
Balance at March 31, 2018
|
$
|
(272.3
|
)
|
|
$
|
372.1
|
|
|
$
|
21.1
|
|
|
$
|
14.4
|
|
|
$
|
(83.6
|
)
|
|
$
|
51.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 March 31,
|
|
|
||||||
|
|
2019
|
|
2018
|
|
|
||||
Net unrealized losses (gains) on securities
|
|
$
|
2.1
|
|
|
$
|
3.4
|
|
|
Net realized gains on investments, excluding other-than-temporary impairment losses
|
|
|
(0.5
|
)
|
|
(0.7
|
)
|
|
Provision for income taxes
|
||
|
|
$
|
1.6
|
|
|
$
|
2.7
|
|
|
Net of tax
|
Unrealized gains on derivative transactions
|
|
$
|
(0.7
|
)
|
|
$
|
—
|
|
|
Interest Expense
|
|
|
0.1
|
|
|
—
|
|
|
Provision for income taxes
|
||
|
|
$
|
(0.6
|
)
|
|
$
|
—
|
|
|
Net of tax
|
Amortization of pension and postretirement unrecognized net periodic benefit cost:
|
|
|
|
|
|
|
||||
Amortization of net loss
|
|
$
|
0.3
|
|
|
$
|
—
|
|
|
(1)
|
|
|
(0.1
|
)
|
|
—
|
|
|
Provision for income taxes
|
||
|
|
$
|
0.2
|
|
|
$
|
—
|
|
|
Net of tax
|
Total reclassifications for the period
|
|
$
|
1.2
|
|
|
$
|
2.7
|
|
|
Net of tax
|
|
|
|
|
|
|
|
(1)
|
These accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 16 for additional information.
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
RSU compensation expense
|
$
|
7.0
|
|
|
$
|
5.1
|
|
Income tax benefit
|
(1.3
|
)
|
|
(0.8
|
)
|
||
RSU compensation expense, net of tax
|
$
|
5.7
|
|
|
$
|
4.3
|
|
RSUs granted
|
193,842
|
|
|
389,499
|
|
||
Weighted average grant date fair value per unit
|
$
|
97.78
|
|
|
$
|
90.73
|
|
Total fair value of vested RSUs
|
$
|
21.8
|
|
|
$
|
16.2
|
|
|
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
PSU compensation expense
|
$
|
4.2
|
|
|
$
|
4.2
|
|
Income tax benefit
|
(0.6
|
)
|
|
(0.9
|
)
|
||
PSU compensation expense, net of tax
|
$
|
3.6
|
|
|
$
|
3.3
|
|
PSUs granted
|
246,219
|
|
|
—
|
|
||
Weighted average grant date fair value per unit
|
$
|
105.23
|
|
|
$
|
—
|
|
Total fair value of vested PSUs
|
$
|
17.7
|
|
|
$
|
—
|
|
|
|
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Numerator
|
|
|
|
||||
Net income attributable to stockholders
|
$
|
165.7
|
|
|
$
|
106.0
|
|
Less: Preferred stock dividends
|
(4.7
|
)
|
|
—
|
|
||
Net income attributable to common stockholders
|
161.0
|
|
|
106.0
|
|
||
Less: Common stock dividends paid
|
(37.4
|
)
|
|
(29.7
|
)
|
||
Undistributed earnings
|
$
|
123.6
|
|
|
$
|
76.3
|
|
Denominator
|
|
|
|
||||
Weighted average common shares outstanding used in basic earnings per common share calculations
|
62,594,828
|
|
|
53,169,358
|
|
||
Incremental common shares from:
|
|
|
|
||||
PSUs
|
211,477
|
|
|
308,418
|
|
||
ESPP
|
1,765
|
|
|
—
|
|
||
MCPS
|
2,969,875
|
|
|
711,722
|
|
||
Weighted average common shares used in diluted earnings per common share calculations
|
65,777,945
|
|
|
54,189,498
|
|
||
Earnings per common share - Basic
|
|
|
|
||||
Distributed earnings
|
$
|
0.60
|
|
|
$
|
0.56
|
|
Undistributed earnings
|
1.97
|
|
|
1.43
|
|
||
Net income attributable to common stockholders
|
$
|
2.57
|
|
|
$
|
1.99
|
|
Earnings per common share - Diluted
|
|
|
|
||||
Distributed earnings
|
$
|
0.57
|
|
|
$
|
0.55
|
|
Undistributed earnings
|
1.95
|
|
|
1.41
|
|
||
Net income attributable to common stockholders
|
$
|
2.52
|
|
|
$
|
1.96
|
|
|
|
|
|
Qualified Pension Benefits
|
|
Unfunded Non-qualified
Pension Benefits
|
|
Retirement Health
Benefits
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||
Interest cost
|
$
|
6.5
|
|
|
$
|
5.8
|
|
|
$
|
0.7
|
|
|
$
|
0.7
|
|
|
$
|
0.9
|
|
|
$
|
0.8
|
|
Expected return on plan assets
|
(9.0
|
)
|
|
(9.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
|
(0.5
|
)
|
||||||
Amortization of net loss
|
—
|
|
|
0.2
|
|
|
0.3
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
||||||
Net periodic benefit cost
|
$
|
(2.5
|
)
|
|
$
|
(3.1
|
)
|
|
$
|
1.0
|
|
|
$
|
1.2
|
|
|
$
|
0.5
|
|
|
$
|
0.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
the loss of significant clients, distributors and other parties or those parties facing financial, reputation and regulatory issues;
|
(ii)
|
significant competitive pressures, changes in customer preferences and disruption;
|
(iii)
|
the failure to find and integrate acquisitions, including The Warranty Group (“TWG”), or grow organically and risks associated with joint ventures;
|
(iv)
|
the impact of general economic, financial market and political conditions, including unfavorable conditions in the capital and credit markets, and conditions in the markets in which we operate;
|
(v)
|
risks related to our international operations and fluctuations in exchange rates;
|
(vi)
|
the impact of catastrophic and non-catastrophe losses;
|
(vii)
|
our inability to recover should we experience a business continuity event;
|
(viii)
|
our inability to develop and maintain distribution sources or attract and retain sales representatives;
|
(ix)
|
failure to manage vendors and other third parties who conduct business and provide services to our clients;
|
(x)
|
declines in the value of mobile devices and export compliance risk in our mobile business;
|
(xi)
|
negative publicity relating to our products and services or the markets in which we operate;
|
(xii)
|
failure to implement our strategy and to attract and retain key personnel, including senior management;
|
(xiii)
|
employee misconduct;
|
(xiv)
|
the adequacy of reserves established for claims and our inability to accurately predict and price for claims;
|
(xv)
|
a decline in financial strength ratings or corporate senior debt ratings;
|
(xvi)
|
an impairment of goodwill or other intangible assets;
|
(xvii)
|
failure to maintain effective internal control over financial reporting;
|
(xviii)
|
a decrease in the value of our investment portfolio including due to market, credit and liquidity risks;
|
(xix)
|
the impact of U.S. tax reform legislation and impairment of deferred tax assets;
|
(xx)
|
the unavailability or inadequacy of reinsurance coverage and credit risk of reinsurers, including those to whom we have sold business through reinsurance;
|
(xxi)
|
the credit risk of some of our agents;
|
(xxii)
|
the inability of our subsidiaries to pay sufficient dividends to the holding company and limitations on our ability to declare and pay dividends;
|
(xxiii)
|
changes in the method for determining or replacement of LIBOR;
|
(xxiv)
|
failure to effectively maintain and modernize our information technology systems and infrastructure and integrate those of acquired businesses;
|
(xxv)
|
breaches of our information systems or those of third parties or failure to protect data in such systems, including due to cyber-attacks;
|
(xxvi)
|
costs of complying with, or failure to comply with, extensive laws and regulations to which we are subject, including related to privacy, data security and data protection;
|
(xxvii)
|
the impact from litigation and regulatory actions;
|
(xxviii)
|
reductions in the insurance premiums we charge; and
|
(xxix)
|
changes in insurance and other regulation.
|
•
|
Global Housing: provides lender-placed homeowners insurance; renters insurance and related products (referred to as “Multifamily Housing”); and manufactured housing and flood insurance and other specialty products (referred to as “Specialty and Other”);
|
•
|
Global Lifestyle: provides mobile device protection products and related services and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance (referred to as “Global Financial Services and Other”);
|
•
|
Global Preneed: provides pre-funded funeral insurance and annuity products; and
|
•
|
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 businesses through reinsurance agreements, expenses related to the acquisition of TWG, foreign currency gains (losses) from remeasurement of monetary assets and liabilities, the gain or loss on the sale of businesses and other unusual or infrequent items. Additionally, the Corporate and Other segment includes amounts related to the runoff of the Assurant Health business.
|
|
For the Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
||||
Net earned premiums
|
$
|
1,904.4
|
|
|
$
|
1,124.9
|
|
Fees and other income
|
328.3
|
|
|
364.5
|
|
||
Net investment income
|
166.3
|
|
|
130.2
|
|
||
Net realized gains on investments
|
28.8
|
|
|
0.5
|
|
||
Amortization of deferred gains on disposal of businesses
|
7.8
|
|
|
18.5
|
|
||
Total revenues
|
2,435.6
|
|
|
1,638.6
|
|
||
Benefits, losses and expenses:
|
|
|
|
||||
Policyholder benefits
|
614.7
|
|
|
414.6
|
|
||
Amortization of deferred acquisition costs and value of business acquired
|
777.3
|
|
|
346.4
|
|
||
Underwriting, general and administrative expenses
|
800.1
|
|
|
719.6
|
|
||
Interest expense
|
26.5
|
|
|
21.5
|
|
||
Total benefits, losses and expenses
|
2,218.6
|
|
|
1,502.1
|
|
||
Income before provision for income taxes
|
217.0
|
|
|
136.5
|
|
||
Provision for income taxes
|
48.4
|
|
|
30.5
|
|
||
Net income
|
168.6
|
|
|
106.0
|
|
||
Less: Net income attributable to non-controlling interest
|
(2.9
|
)
|
|
—
|
|
||
Net income attributable to stockholders
|
165.7
|
|
|
106.0
|
|
||
Less: Preferred stock dividends
|
(4.7
|
)
|
|
—
|
|
||
Net income attributable to common stockholders
|
$
|
161.0
|
|
|
$
|
106.0
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
||||
Net earned premiums
|
$
|
460.1
|
|
|
$
|
436.4
|
|
Fees and other income
|
39.9
|
|
|
86.7
|
|
||
Net investment income
|
25.4
|
|
|
20.2
|
|
||
Total revenues
|
525.4
|
|
|
543.3
|
|
||
Benefits, losses and expenses:
|
|
|
|
||||
Policyholder benefits
|
198.9
|
|
|
169.1
|
|
||
Amortization of deferred acquisition costs and value of business acquired
|
53.9
|
|
|
49.6
|
|
||
Underwriting, general and administrative expenses
|
180.7
|
|
|
234.9
|
|
||
Total benefits, losses and expenses
|
433.5
|
|
|
453.6
|
|
||
Segment income before provision for income taxes
|
91.9
|
|
|
89.7
|
|
||
Provision for income taxes
|
19.2
|
|
|
18.5
|
|
||
Segment net income
|
$
|
72.7
|
|
|
$
|
71.2
|
|
Net earned premiums, fees and other income:
|
|
|
|
||||
Lender-placed Insurance
|
$
|
274.2
|
|
|
$
|
289.7
|
|
Multifamily Housing
|
104.0
|
|
|
97.2
|
|
||
Mortgage Solutions
|
—
|
|
|
45.5
|
|
||
Specialty and Other
|
121.8
|
|
|
90.7
|
|
||
Total
|
$
|
500.0
|
|
|
$
|
523.1
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
||||
Net earned premiums
|
$
|
1,428.5
|
|
|
$
|
673.6
|
|
Fees and other income
|
253.1
|
|
|
244.9
|
|
||
Net investment income
|
58.9
|
|
|
32.1
|
|
||
Total revenues
|
1,740.5
|
|
|
950.6
|
|
||
Benefits, losses and expenses:
|
|
|
|
||||
Policyholder benefits
|
347.2
|
|
|
181.6
|
|
||
Amortization of deferred acquisition costs and value of business acquired
|
705.8
|
|
|
280.3
|
|
||
Underwriting, general and administrative expenses
|
555.8
|
|
|
415.8
|
|
||
Total benefits, losses and expenses
|
1,608.8
|
|
|
877.7
|
|
||
Segment income before provision for income taxes
|
131.7
|
|
|
72.9
|
|
||
Provision for income taxes
|
31.1
|
|
|
17.1
|
|
||
Segment net income
|
$
|
100.6
|
|
|
$
|
55.8
|
|
Net earned premiums, fees and other income:
|
|
|
|
||||
Connected Living (mobile and service contracts)
|
$
|
871.0
|
|
|
$
|
602.1
|
|
Global Automotive
|
693.6
|
|
|
202.5
|
|
||
Global Financial Services and Other
|
117.0
|
|
|
113.9
|
|
||
Total
|
$
|
1,681.6
|
|
|
$
|
918.5
|
|
Net earned premiums, fees and other income:
|
|
|
|
||||
Domestic
|
$
|
1,191.3
|
|
|
$
|
579.5
|
|
International
|
490.3
|
|
|
339.0
|
|
||
Total
|
$
|
1,681.6
|
|
|
$
|
918.5
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
||||
Net earned premiums
|
$
|
15.8
|
|
|
$
|
14.6
|
|
Fees and other income
|
33.3
|
|
|
31.6
|
|
||
Net investment income
|
69.1
|
|
|
65.8
|
|
||
Total revenues
|
118.2
|
|
|
112.0
|
|
||
Benefits, losses and expenses:
|
|
|
|
||||
Policyholder benefits
|
68.6
|
|
|
66.7
|
|
||
Amortization of deferred acquisition costs and value of business acquired
|
17.6
|
|
|
16.5
|
|
||
Underwriting, general and administrative expenses
|
16.9
|
|
|
16.2
|
|
||
Total benefits, losses and expenses
|
103.1
|
|
|
99.4
|
|
||
Segment income before provision for income taxes
|
15.1
|
|
|
12.6
|
|
||
Provision for income taxes
|
3.3
|
|
|
2.8
|
|
||
Segment net income
|
$
|
11.8
|
|
|
$
|
9.8
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Revenues:
|
|
|
|
||||
Net earned premiums
|
$
|
—
|
|
|
$
|
0.3
|
|
Fees and other income
|
2.0
|
|
|
1.3
|
|
||
Net investment income
|
12.9
|
|
|
12.1
|
|
||
Net realized gains on investments
|
28.8
|
|
|
0.5
|
|
||
Amortization of deferred gains on disposal of businesses
|
7.8
|
|
|
18.5
|
|
||
Total revenues
|
51.5
|
|
|
32.7
|
|
||
Benefits, losses and expenses:
|
|
|
|
||||
Policyholder benefits
|
—
|
|
|
(2.8
|
)
|
||
General and administrative expenses
|
46.7
|
|
|
52.7
|
|
||
Interest expense
|
26.5
|
|
|
21.5
|
|
||
Total benefits, losses and expenses
|
73.2
|
|
|
71.4
|
|
||
Segment loss before benefit for income taxes
|
(21.7
|
)
|
|
(38.7
|
)
|
||
Benefit for income taxes
|
(5.2
|
)
|
|
(7.9
|
)
|
||
Segment net loss
|
(16.5
|
)
|
|
(30.8
|
)
|
||
Less: Net income attributable to non-controlling interest
|
(2.9
|
)
|
|
—
|
|
||
Net loss attributable to stockholders
|
(19.4
|
)
|
|
(30.8
|
)
|
||
Less: Preferred stock dividends
|
(4.7
|
)
|
|
—
|
|
||
Net loss attributable to common stockholders
|
$
|
(24.1
|
)
|
|
$
|
(30.8
|
)
|
|
Fair value as of
|
||||||||||||
Fixed Maturity Securities by Credit Quality
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||
Aaa / Aa / A
|
$
|
7,718.0
|
|
|
65.2
|
%
|
|
$
|
7,329.8
|
|
|
65.1
|
%
|
Baa
|
3,529.8
|
|
|
29.8
|
%
|
|
3,322.7
|
|
|
29.5
|
%
|
||
Ba
|
434.0
|
|
|
3.7
|
%
|
|
447.9
|
|
|
4.0
|
%
|
||
B and lower
|
152.8
|
|
|
1.3
|
%
|
|
156.7
|
|
|
1.4
|
%
|
||
Total
|
$
|
11,834.6
|
|
|
100.0
|
%
|
|
$
|
11,257.1
|
|
|
100.0
|
%
|
|
Three Months Ended
March 31, |
||||||
|
2019
|
|
2018
|
||||
Fixed maturity securities
|
$
|
122.1
|
|
|
$
|
104.6
|
|
Equity securities
|
5.8
|
|
|
5.0
|
|
||
Commercial mortgage loans on real estate
|
8.5
|
|
|
8.3
|
|
||
Short-term investments
|
5.6
|
|
|
2.4
|
|
||
Other investments
|
7.6
|
|
|
6.1
|
|
||
Cash and cash equivalents
|
7.0
|
|
|
4.9
|
|
||
Revenue from consolidated investment entities (1)
|
40.7
|
|
|
13.5
|
|
||
Total investment income
|
197.3
|
|
|
144.8
|
|
||
Investment expenses
|
(5.6
|
)
|
|
(4.2
|
)
|
||
Expenses from consolidated investment entities (1)
|
(25.4
|
)
|
|
(10.4
|
)
|
||
Net investment income
|
$
|
166.3
|
|
|
$
|
130.2
|
|
(1)
|
The net of revenues and expenses from consolidated investment entities of $15.3 million for First Quarter 2019 includes $7.6 million, $3.8 million, and $1.8 million of investment income from our direct investment in the real estate fund, collateralized loan obligation (“CLO”) entities, and the related non-controlling interest, respectively, and $2.1 million related to investment management fees. The net revenues and expenses from consolidated investment entities of $3.1 million for First Quarter 2018 includes $1.9 million and $0.8 million of investment income from our direct investment in the real estate fund and CLOs, respectively, and $0.4 million related to investment management fees. Refer to Note 8 to the Consolidated Financial Statements included elsewhere in this Report for further detail.
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||
|
Principal Amount
|
|
Carrying Value
|
||||||||
Floating Rate Senior Notes due March 2021 (1)
|
$
|
300.0
|
|
|
$
|
298.2
|
|
|
$
|
298.1
|
|
4.00% Senior Notes due March 2023
|
350.0
|
|
|
348.2
|
|
|
348.1
|
|
|||
4.20% Senior Notes due September 2023
|
300.0
|
|
|
296.9
|
|
|
296.8
|
|
|||
4.90% Senior Notes due March 2028
|
300.0
|
|
|
297.7
|
|
|
297.6
|
|
|||
6.75% Senior Notes due February 2034
|
375.0
|
|
|
371.0
|
|
|
370.9
|
|
|||
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2)
|
400.0
|
|
|
394.6
|
|
|
394.5
|
|
|||
Total debt
|
|
|
$
|
2,006.6
|
|
|
$
|
2,006.0
|
|
•
|
2021 Senior Notes: The first series of senior notes is $300.0 million in principal amount, bears floating interest rate equal to three-month LIBOR plus 1.25% (4.06% as of March 31, 2019) and is payable in a single installment due March 2021 (“2021 Senior Notes”). Interest on the 2021 Senior Notes is payable quarterly. Commencing on or after March 2019, we may redeem the 2021 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
|
•
|
2023 Senior Notes: The second series of senior notes is $300.0 million in principal amount, bears interest at 4.20% per year, is payable in a single installment due September 2023 and was issued at a 0.233% discount (“2023 Senior Notes”). Interest on the 2023 Senior Notes is payable semi-annually. Prior to August 2023, we may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a make-whole premium plus accrued and unpaid interest. On or after that date, we may redeem the 2023 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
|
•
|
2028 Senior Notes: The third series of senior notes is $300.0 million in principal amount, bears interest at 4.90% per year, is payable in a single installment due March 2028 and was issued at a 0.383% discount (“2028 Senior Notes”). Interest on the 2028 Senior Notes is payable semi-annually. Prior to December 2027, we may redeem the 2028 Senior Notes at any time in whole or from time to time in part of a make-whole premium plus accrued and unpaid interest. On or after that date, we may redeem the 2028 Senior Notes at any time in whole or from time to time in part at a redemption price equal to 100% of the principal amount being redeemed plus accrued and unpaid interest.
|
|
For the Three Months Ended March 31,
|
||||||
Net cash provided by (used in):
|
2019
|
|
2018
|
||||
Operating activities
|
$
|
246.7
|
|
|
$
|
(75.7
|
)
|
Investing activities
|
(447.2
|
)
|
|
79.1
|
|
||
Financing activities
|
220.9
|
|
|
1,344.0
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(0.2
|
)
|
|
(2.2
|
)
|
||
Net change in cash
|
$
|
20.2
|
|
|
$
|
1,345.2
|
|
|
For the Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Interest paid on debt
|
$
|
50.4
|
|
|
$
|
24.0
|
|
Common stock dividends
|
37.4
|
|
|
29.7
|
|
||
Preferred stock dividends
|
4.7
|
|
|
—
|
|
||
Total
|
$
|
92.5
|
|
|
$
|
53.7
|
|
(Dollar amounts in millions, except number of shares and per share amounts)
|
|||||||||||||
Period in 2019
|
Total
Number of
Shares Repurchased
|
|
Average Price
Paid Per Share
|
|
Total Number of Shares
Repurchased as Part of
Publicly Announced
Programs (1)
|
|
Approximate
Dollar Value of
Shares that
May Yet be
Repurchased
Under the
Programs (1)
|
||||||
January 1 - 31
|
189,230
|
|
|
$
|
93.43
|
|
|
189,230
|
|
|
$
|
743.5
|
|
February 1 - 28
|
152,000
|
|
|
98.39
|
|
|
152,000
|
|
|
728.5
|
|
||
March 1 - 31
|
184,449
|
|
|
97.07
|
|
|
184,449
|
|
|
710.6
|
|
||
Total
|
525,679
|
|
|
$
|
96.14
|
|
|
525,679
|
|
|
$
|
710.6
|
|
(1)
|
Shares purchased pursuant to the November 14, 2016 publicly announced share repurchase authorization of up to $600.0 million of outstanding common stock. On November 5, 2018, our Board of Directors authorized the Company to repurchase up to an additional $600.0 million of its outstanding common stock.
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101
|
|
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2019, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Equity, (v) the Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. |
ASSURANT, INC.
|
||
|
|
|
By:
|
|
/s/ ALAN B. COLBERG
|
Name:
|
|
Alan B. Colberg
|
Title:
|
|
President, Chief Executive Officer and Director
|
|
|
|
By:
|
|
/s/ RICHARD S. DZIADZIO
|
Name:
|
|
Richard S. Dziadzio
|
Title:
|
|
Executive Vice President and Chief Financial 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%
|
Performance Level
|
Cumulative Net Operating EPS Goal (2019-2021)
|
Percentage of Applicable Restricted Stock Units that Vest
|
Maximum
|
$35.86
|
200%
|
Stretch
|
$34.30
|
125%
|
Above Target
|
$32.74
|
110%
|
Target
|
$31.18
|
100%
|
Near Target
|
$29.62
|
90%
|
Below Target
|
$28.06
|
75%
|
Threshold
|
$26.50
|
50%
|
Below Threshold
|
$26.49 or less
|
0%
|
|
/s/ Alan B. Colberg
|
|
Alan B. Colberg
President, Chief Executive Officer and Director
|
|
/s/ Richard S. Dziadzio
|
|
Richard S. Dziadzio
Executive Vice President and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
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 and Chief Financial Officer
|