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November 3, 2022 Newswires
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ASSURANT, INC. – 10-Q – Management's Discussion and Analysis of Financial Condition and Results of Operations

Edgar Glimpses

(In millions, except number of shares and per share amounts)


The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with Management's Discussion and
Analysis of Financial Condition and Results of Operations ("MD&A") and the
annual audited consolidated financial statements for the year ended December 31,
2021 and accompanying notes included in our Annual Report on Form 10-K for the
year ended December 31, 2021 (the "2021 Annual Report") filed with the U.S.
Securities and Exchange Commission (the "SEC") and the unaudited consolidated
financial statements for the three and nine months ended September 30, 2022 and
accompanying notes (the "Consolidated Financial Statements") included elsewhere
in this Quarterly Report on Form 10-Q (this "Report"). The following discussion
and analysis covers the three and nine months ended September 30, 2022 ("Third
Quarter 2022" and "Nine Months 2022") and the three and nine months ended
September 30, 2021 ("Third Quarter 2021" and "Nine Months 2021").

Some of the statements in this Report, including our business and financial
plans and any statements regarding our anticipated future financial performance,
business prospects, growth and operating strategies and similar matters, may
constitute forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. You can identify these statements by
the use of words such as "outlook," "objective," "will," "may," "can,"
"anticipates," "expects," "estimates," "projects," "intends," "plans,"
"believes," "targets," "forecasts," "potential," "approximately," and the
negative version of those words and other words and terms with a similar
meaning. Any forward-looking statements contained in this Report are based upon
our historical performance and on current plans, estimates and expectations. The
inclusion of this forward-looking information should not be regarded as a
representation by us or any other person that our future plans, estimates or
expectations will be achieved. Our actual results might differ materially from
those projected in the forward-looking statements. We undertake no obligation to
update or review any forward-looking statement, whether as a result of new
information, future events or other developments. The following factors could
cause our actual results to differ materially from those currently estimated by
management:

(i)the loss of significant clients, distributors or other parties with whom we
do business, or if we are unable to renew contracts with them on favorable
terms, or if those parties face financial, reputational or regulatory issues;

(ii)significant competitive pressures, changes in customer preferences and
disruption;

(iii)the failure to execute our strategy, including through the continuing
service of key executives, senior leaders, highly-skilled personnel and a
high-performing workforce;

(iv)the failure to find suitable acquisitions at attractive prices, integrate
acquired businesses effectively or identify new areas for organic growth;

(v)our inability to recover should we experience a business continuity event;

(vi)the failure to manage vendors and other third parties on whom we rely to
conduct business and provide services to our clients;

(vii)risks related to our international operations;

(viii)declines in the value of mobile devices, or export compliance or other
risks in our mobile business;

(ix)our inability to develop and maintain distribution sources or attract and
retain sales representatives and executives with key client relationships;

(x)risks associated with joint ventures, franchises and investments in which we
share ownership and management with third parties;

(xi)the impact of catastrophe and non-catastrophe losses, including as a result
of the current inflationary environment and climate change;

(xii)negative publicity relating to our business or industry;


(xiii)the impact of general economic, financial market and political conditions
and conditions in the markets in which we operate, including the current
inflationary environment (that has increased the costs of paying claims,
including for materials and labor, as well as our employee wages), any prolonged
recessionary environment and the conflict in Ukraine;

(xiv)the impact of the COVID-19 pandemic and measures taken in response thereto;

(xv)the adequacy of reserves established for claims and our inability to
accurately predict and price for claims;

(xvi)a decline in financial strength ratings of our insurance subsidiaries or in
our corporate senior debt ratings;

(xvii)fluctuations in exchange rates, including in the current environment;

(xviii)an impairment of goodwill or other intangible assets;

                                       34

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(xix)the failure to maintain effective internal control over financial
reporting;

(xx)unfavorable conditions in the capital and credit markets;

(xxi)a decrease in the value of our investment portfolio, including due to
market, credit and liquidity risks, and changes in interest rates;

(xxii)an impairment in the value of our deferred tax assets;

(xxiii)the unavailability or inadequacy of reinsurance coverage and the credit
risk of reinsurers, including those to whom we have sold business through
reinsurance;

(xxiv)the credit risk of some of our agents, third-party administrators and
clients;

(xxv)the inability of our subsidiaries to pay sufficient dividends to the
holding company and limitations on our ability to declare and pay dividends or
repurchase shares;

(xxvi)limitations in the analytical models we use to assist in our
decision-making;

(xxvii)the failure to effectively maintain and modernize our information
technology systems and infrastructure, or the failure to integrate those of
acquired businesses;


(xxviii)breaches of our information systems or those of third parties with whom
we do business, or the failure to protect the security of data in such systems,
including due to cyberattacks and as a result of working remotely;

(xxix)the costs of complying with, or the failure to comply with, extensive laws
and regulations to which we are subject, including those related to privacy,
data security, data protection or tax;

(xxx)the impact of litigation and regulatory actions;

(xxxi)reductions or deferrals in the insurance premiums we charge;

(xxxii)changes in insurance, tax and other regulations, including the Inflation
Reduction Act of 2022;

(xxxiii)volatility in our common stock price and trading volume; and

(xxxiv)employee misconduct.

For additional information on factors that could affect our actual results,
please refer to "Critical Factors Affecting Results" below and in Item 7 of our
2021 Annual Report, and "Item 1A-Risk Factors" below and in our 2021 Annual
Report.

Reportable Segments


As of September 30, 2022, we had three reportable segments which are defined
based on the manner in which the Company's chief operating decision maker, our
Chief Executive Officer ("CEO"), reviews the business to assess performance and
allocate resources, and which align to the nature of the products and services
offered:

•Global Lifestyle: includes mobile device solutions, extended service products
and related services for consumer electronics and appliances, and credit and
other insurance products (referred to as "Connected Living"); and vehicle
protection and related services (referred to as "Global Automotive");

•Global Housing: includes lender-placed homeowners insurance, lender-placed
manufactured housing insurance and lender-placed flood insurance (referred to as
"Lender-placed Insurance"); renters insurance and related products (referred to
as "Multifamily Housing"); and voluntary manufactured housing insurance,
voluntary homeowners insurance and other specialty products (referred to as
"Specialty and Other"); and

•Corporate and Other: includes corporate employee-related expenses and
activities of the holding company.


In conjunction with the transition of our CEO and chief operating decision maker
on January 1, 2022, we changed our segment measure of profitability for our
reportable segments to an Adjusted EBITDA metric, as the primary measure used
for purposes of making decisions about allocating resources to the segments and
assessing performance, from segment net income from continuing operations,
effective as of that date. Prior period amounts have been revised to reflect the
new segment measure of profitability. See Note 5 to the Consolidated Financial
Statements included elsewhere in this Report for more information.

We define Adjusted EBITDA as net income from continuing operations, excluding
net realized gains (losses) on investments and fair value changes to equity
securities, COVID-19 direct and incremental expenses, loss on extinguishment of
debt, non-core operations (defined below), net income (loss) attributable to
non-controlling interests, interest expense, provision (benefit) for income
taxes, depreciation expense, amortization of purchased intangible assets,
restructuring costs related to strategic exit activities (outside of normal
periodic restructuring and cost management activities), as well as other highly
variable or unusual items.

                                       35

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Executive Summary

Summary of Financial Results


Consolidated net income from continuing operations decreased $143.7 million, or
95%, to $7.3 million for Third Quarter 2022 from $151.0 million for Third
Quarter 2021. The decline was primarily due to the absence of net unrealized
gains from three equity positions that went public in Third Quarter 2021 through
SPAC mergers and an increase in net realized losses from sales of fixed maturity
securities.

Global Lifestyle Adjusted EBITDA decreased $10.4 million, or 6%, to $165.9
million for Third Quarter 2022 from $176.3 million for Third Quarter 2021,
largely reflecting the challenging macroeconomic environment. Excluding a
one-time $11.2 million client contract benefit in the quarter, underlying
results decreased $21.6 million year-over-year, mainly driven by $7.6 million of
unfavorable foreign exchange in Asia Pacific and Europe, higher claims costs in
Connected Living and reduced mobile trade-in-margins that are expected to
normalize in the fourth quarter. This was partially offset by continued mobile
subscriber growth in North America.

Global Lifestyle net earned premiums, fees and other income increased $29.1
million, or 1%, to $1.99 billion for Third Quarter 2022 from $1.96 billion for
Third Quarter 2021, primarily led by Global Automotive premium growth from
strong prior period sales. Connected Living net earned premiums, fees and other
income decreased, mainly from runoff mobile programs and the unfavorable impact
of foreign exchange, partially offset by device protection growth in North
America.

Global Housing Adjusted EBITDA decreased $40.2 million, or 264%, to $(25.0)
million for Third Quarter 2022 from $15.2 million for Third Quarter 2021.
Pre-tax reportable catastrophes (defined as individual catastrophic events that
generate losses in excess of $5.0 million pre-tax, net of reinsurance and client
profit sharing adjustments, and including reinstatement and other premiums)
increased $22.4 million, primarily due to losses from Hurricane Ian. Excluding
reportable catastrophes, Adjusted EBITDA decreased $17.8 million, or 15%,
primarily due to $38.2 million of higher non-catastrophe loss experience across
all major products, including $24.3 million of prior period loss development. In
Lender-placed Insurance, the elevated loss experience and higher catastrophe
reinsurance costs were mostly offset by higher average insured values and
premium rates.

Global Housing net earned premiums, fees and other income increased $13.0
million, or 3%, to $484.1 million for Third Quarter 2022 from $471.1 million for
Third Quarter 2021, primarily due to growth in Specialty and Other products and
Lender-placed Insurance, where higher average insured values and premium rates
were partially offset by higher catastrophe reinstatement premiums.

Corporate and Other Adjusted EBITDA was $(24.9) million for Third Quarter 2022
compared to $(23.0) million for Third Quarter 2021, primarily driven by lower
investment income.

Critical Factors Affecting Results


Our results depend on, among other things, the frequency and severity of
reportable and non-reportable catastrophes, the appropriateness of our product
pricing, underwriting, the accuracy of our reserving methodology for future
policyholder benefits and claims, returns on and values of invested assets, our
investment income and our ability to manage our expenses and achieve expense
savings. Our results also depend on our ability to profitably grow our
businesses, in particular our Connected Living, Multifamily Housing and Global
Automotive businesses, and to maintain our position in our Lender-placed
Insurance business. Factors affecting these items, including conditions in the
financial markets, the global economy and the markets in which we operate,
including rising inflation and interest rates, fluctuations in exchange rates,
any prolonged recessionary environment, the conflict in Ukraine and competition,
may have a material adverse effect on our results of operations or financial
condition. For example, the current inflationary environment has increased the
costs of paying claims, including for materials and labor, as well as our
employee wages, which has impacted the results of our Lender-placed Insurance
business and other businesses; and challenging macroeconomic factors
internationally have impacted our Connected Living and other businesses,
including from unfavorable foreign exchange rates. For more information on these
and other factors that could affect our results, see "Item 1A-Risk Factors"
below and in our 2021 Annual Report, and "Item 7-Management's Discussion and
Analysis of Financial Condition and Results of Operations-Critical Factors
Affecting Results" in our 2021 Annual Report.

Our results may be impacted by our ability to maintain competitive advantages
and to continue to grow in the markets in which we operate, including in our
Connected Living, Multifamily Housing and Global Automotive businesses, which
may be impacted by our ability to provide a superior digital-first customer
experience, including from our investments in technology and digital
initiatives, to capitalize on the connected home opportunity, and to maintain
relationships with significant clients, distributors and other parties or renew
contracts with them on favorable terms. Our mobile business is subject to
volatility in mobile device trade-in volumes based on the actual and anticipated
timing of the release of new devices and carrier promotional programs, as well
as to changes in consumer preferences. Our Lender-placed Insurance results will
be impacted by changes in the housing market as well as inflation. In addition,
across many of our businesses, we must respond to the actions of our
                                       36
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competitors, the threat of disruption and the competition for talent. See "Item
1A-Risk Factors-Business, Strategic and Operational Risks-Our revenues and
profits may decline if we are unable to maintain relationships with significant
clients, distributors and other parties, or renew contracts with them on
favorable terms, or if those parties face financial, reputational or regulatory
issues," "Significant competitive pressures, changes in customer preferences and
disruption could adversely affect our results of operations" and "The success of
our business depends on the execution of our strategy, including through the
continuing service of key executives, senior leaders, highly-skilled personnel
and a high-performing workforce" in our 2021 Annual Report.

Critical Accounting Policies and Estimates


Our 2021 Annual Report describes the accounting policies and estimates that are
critical to the understanding of our results of operations, financial condition
and liquidity. The accounting policies and estimation process described in the
2021 Annual Report were consistently applied to the unaudited interim
Consolidated Financial Statements for Third Quarter 2022.

Recent Accounting Pronouncements

For a discussion of recent accounting pronouncements, see Note 3 to the
Consolidated Financial Statements included elsewhere in this Report for more
information.

                                       37

--------------------------------------------------------------------------------

Results of Operations


Beginning with second quarter 2022, we changed the calculation of our segment
measure of profitability, Adjusted EBITDA, to exclude certain businesses which
we expect to fully exit, including the long-tail commercial liability businesses
in Global Housing (sharing economy and small commercial businesses), as well as
certain legacy long-duration insurance policies within Global Lifestyle
(collectively referred to as "non-core operations"). All prior period amounts
have been revised, which impacts segment Adjusted EBITDA but does not impact
consolidated net income. See Note 5 to the Consolidated Financial Statements
included elsewhere in this Report for more information.

We have also revised our prior period financial statements to reflect the
correction of an error identified in second quarter 2022 related to reinsurance
of claims and benefits payable within the Connected Living business unit in our
Global Lifestyle segment, as well as other immaterial errors which were
previously recorded in the periods in which we identified them. See Notes 2 and
17 to the Consolidated Financial Statements included elsewhere in this Report
for more information. Additionally, prior period disclosures have been revised
to include Hurricane Eta, which should have been classified as a reportable
catastrophe.

Discontinued Operations


In August 2021, we completed the sale of the legal entities which comprise the
businesses previously reported as the Global Preneed segment and certain
businesses previously disposed of through reinsurance, which were previously
reported in the Corporate and Other segment (collectively, the "disposed Global
Preneed business") to subsidiaries of CUNA Mutual Group for an aggregate
purchase price at closing of $1.34 billion. For additional information, refer to
Note 4 to the Consolidated Financial Statements included elsewhere in this
Report.

Assurant Consolidated

The table below presents information regarding our consolidated results of
operations for the periods indicated:

                                                           For the Three Months Ended               For the Nine Months Ended
                                                                  September 30,                           September 30,
                                                             2022                2021                2022                2021
Revenues:
Net earned premiums                                     $   2,197.1          $ 2,140.1          $   6,502.4          $ 6,396.3
Fees and other income                                         294.6              309.6                942.2              858.0
Net investment income                                          83.5               76.0                261.8              235.2

Net realized (losses) gains on investments and fair
value changes to equity securities

                            (27.4)             112.1               (166.2)             123.2
Total revenues                                              2,547.8            2,637.8              7,540.2            7,612.7
Benefits, losses and expenses:
Policyholder benefits                                         670.5              617.4              1,760.5            1,684.2
Underwriting, selling, general and administrative
expenses                                                    1,842.5            1,784.0              5,444.8            5,210.4

Interest expense                                               26.3               27.5                 80.4               84.7
Loss on extinguishment of debt                                    -               20.7                  0.9               20.7
Total benefits, losses and expenses                         2,539.3            2,449.6              7,286.6            7,000.0
Income before provision for income taxes                        8.5              188.2                253.6              612.7
Provision for income taxes                                      1.2               37.2                 45.1              133.8
Net income from continuing operations                           7.3              151.0                208.5              478.9
Net income from discontinued operations                           -              728.8                    -              762.0
Net income                                                      7.3              879.8                208.5            1,240.9

Less: Preferred stock dividends                                   -                  -                    -               (4.7)

Net income attributable to common stockholders $ 7.3

$ 879.8 $ 208.5 $ 1,236.2

For the Three Months Ended September 30, 2022 Compared to the Three Months Ended
September 30, 2021

Net income from continuing operations decreased $143.7 million, or 95%, to $7.3
million
for Third Quarter 2022 from $151.0 million for Third Quarter 2021,
primarily driven by a decrease in net unrealized gains from changes in fair
value of

                                       38
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equity securities, mostly related to the absence of unrealized gains from three
equity positions that went public in Third Quarter 2021 through SPAC mergers,
and an increase in net realized losses from sales of fixed maturity securities.
The decrease was also driven by lower earnings contributions from Global
Housing, mainly due to higher non-catastrophe loss experience and an increase in
reportable catastrophe losses mostly due to Hurricane Ian, and lower earnings
contributions from Global Lifestyle driven by our Connected Living business. The
decrease was partially offset by the absence of a $16.3 million after-tax loss
on extinguishment of debt related to the repayment of our 4.00% senior notes due
March 2023.

For the Nine Months Ended September 30, 2022 Compared to the Nine Months Ended
September 30, 2021


Net income from continuing operations decreased $270.4 million, or 56%, to
$208.5 million for Nine Months 2022 from $478.9 million for Nine Months 2021,
primarily driven by a decrease in net unrealized gains from changes in fair
value of equity securities, mostly related to the absence of net unrealized
gains from three equity positions that went public in Third Quarter 2021 through
SPAC mergers, and an increase in net realized losses from sales of fixed
maturity securities. The decrease was also driven by lower earnings
contributions from Global Housing, due to higher non-catastrophe loss
experience, and a $33.6 million after-tax decrease in earnings from our non-core
operations, mostly related to adverse prior year reserve development from the
sharing economy business. The decrease was partially offset by higher earnings
contributions from Global Lifestyle across our Connected Living and Global
Automotive businesses.



                                       39

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Global Lifestyle

The table below presents information regarding the Global Lifestyle segment's
results of operations for the periods indicated:

                                                           For the Three Months Ended               For the Nine Months Ended
                                                                  September 30,                           September 30,
                                                             2022                2021                2022                2021
Revenues
Net earned premiums                                     $   1,728.4          $ 1,686.7          $   5,094.7          $ 5,008.5
Fees and other income                                         261.9              274.5                838.8              748.5
Net investment income                                          57.7               47.9                178.8              146.9
Total revenues                                              2,048.0            2,009.1              6,112.3            5,903.9
Benefits, losses and expenses
Policyholder benefits                                         343.9              333.9                976.2            1,006.2
Underwriting, selling, general and administrative
expenses                                                    1,538.2            1,498.9              4,548.8            4,351.7
Total benefits, losses and expenses                         1,882.1            1,832.8              5,525.0            5,357.9
Global Lifestyle Adjusted EBITDA                        $     165.9         

$ 176.3 $ 587.3 $ 546.0


Net earned premiums, fees and other income:
Connected Living                                        $   1,046.8          $ 1,094.1          $   3,182.0          $ 3,221.9
Global Automotive                                             943.5              867.1              2,751.5            2,535.1
Total                                                   $   1,990.3          $ 1,961.2          $   5,933.5          $ 5,757.0

Net earned premiums, fees and other income:
Domestic                                                $   1,557.5          $ 1,500.3          $   4,585.2          $ 4,341.3
International                                                 432.8              460.9              1,348.3            1,415.7
Total                                                   $   1,990.3          $ 1,961.2          $   5,933.5          $ 5,757.0

For the Three Months Ended September 30, 2022 Compared to the Three Months Ended
September 30, 2021


Adjusted EBITDA decreased $10.4 million, or 6%, to $165.9 million for Third
Quarter 2022 from $176.3 million for Third Quarter 2021. The decrease was
primarily due to the challenging macroeconomic environment, mostly driven by
$7.6 million of unfavorable impact of foreign exchange in Asia Pacific and
Europe, lower margins from our domestic mobile trade-in and upgrade programs due
to lower volumes, lower performance from our extended service contract programs
due to both higher claims costs from wage and materials and additional
investments in connected home, and lower international volumes from global
mobile programs, particularly in Asia Pacific and Europe. The decrease was also
driven by lower net investment income in Global Automotive, after client profit
sharing, and higher losses in Europe. The decrease was partially offset by a
one-time client contract benefit of $11.2 million, continued mobile subscriber
growth in North America and favorable loss experience in select ancillary
products in Global Automotive.

Total revenues increased $38.9 million, or 2%, to $2.05 billion for Third
Quarter 2022 from $2.01 billion for Third Quarter 2021. Net earned premiums
increased $41.7 million, or 2%, primarily driven by continued organic growth
from strong prior period U.S. sales in our Global Automotive business across all
distribution channels and domestic mobile subscriber growth within our cable
operator distribution channel. The increase in net earned premiums was partially
offset by a decrease from the run-off of certain global mobile programs and
unfavorable impacts of foreign exchange. Net investment income increased $9.8
million, or 20%, primarily due to higher fixed maturity asset levels and higher
yields. The increase in total revenues was partially offset by a decrease in
fees and other income of $12.6 million, or 5%, mainly driven by a decrease in
domestic repair and logistics fees, partially offset by device protection growth
in North America.

Total benefits, losses and expenses increased $49.3 million, or 3%, to $1.88
billion for Third Quarter 2022 from $1.83 billion for Third Quarter 2021.
Underwriting, selling, general and administrative expenses increased $39.3
million, or 3%, primarily due to higher commission expenses, mainly from growth
across our Global Automotive business and domestic mobile subscriber growth
within our cable operator distribution channel, and higher operating costs to
support growth. This was partially offset by lower commission expenses related
to the run-off of certain global mobile programs and a one-time client contract
benefit of $11.2 million. Policyholder benefits increased $10.0 million, or 3%,
primarily due to growth across our Global Automotive and Connected Living
businesses and higher claim costs in our extended service contracts programs,

                                       40

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partially offset by the run-off of certain global mobile programs and favorable
loss experience from select domestic ancillary products in Global Automotive.

For the Nine Months Ended September 30, 2022 Compared to the Nine Months Ended
September 30, 2021


Adjusted EBITDA increased $41.3 million, or 8%, to $587.3 million for Nine
Months 2022 from $546.0 million for Nine Months 2021, due to strong results
across Connected Living and Global Automotive. The increase was primarily driven
by mobile device protection contributions in North America, including subscriber
growth and favorable loss experience; higher net investment income, after client
profit sharing, in Global Automotive, mainly from higher fixed maturity asset
levels, higher yields and the sale of real estate joint venture partnerships;
and favorable loss experience in select ancillary products and expansion across
distribution channels in Global Automotive. The increase was partially offset by
unfavorable impacts of foreign exchange, mainly in Asia Pacific and Europe, and
higher operating costs associated with growth.

Total revenues increased $208.4 million, or 4%, to $6.11 billion for Nine Months
2022 from $5.90 billion for Nine Months 2021. Fees and other income increased
$90.3 million, or 12%, mainly driven by an increase in global mobile devices
serviced. Net earned premiums increased $86.2 million, or 2%, primarily driven
by continued organic growth from strong prior period U.S. sales in our Global
Automotive business across all distribution channels and domestic mobile
subscriber growth within our cable operator distribution channel. The increase
in net earned premiums was partially offset by the run-off of certain global
mobile programs and unfavorable foreign exchange. Net investment income
increased $31.9 million, or 22%, primarily due to higher fixed maturity asset
levels, higher yields and higher real estate related income.

Total benefits, losses and expenses increased $167.1 million, or 3%, to $5.53
billion for Nine Months 2022 from $5.36 billion for Nine Months 2021.
Underwriting, selling, general and administrative expenses increased $197.1
million, or 5%, due to higher commission expenses, mainly from growth across our
Global Automotive business and domestic mobile subscriber growth within our
cable operator distribution channel, as well as higher cost of sales in
Connected Living due to an increase in global mobile devices serviced and higher
operating cost to support growth. This was partially offset by lower commission
expenses related to the run-off of certain global mobile programs. The increase
in total benefits losses and expenses was partially offset by a decrease in
policyholder benefits of $30.0 million, or 3%, primarily due to the run-off of
certain global mobile programs and favorable loss experience from select
domestic ancillary products in Global Automotive, partially offset by growth
across our Global Automotive and Connected Living businesses.

                                       41

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Global Housing

The table below presents information regarding the Global Housing segment's
results of operations for the periods indicated:

                                                         For the Three Months Ended             For the Nine Months Ended
                                                                September 30,                         September 30,
                                                            2022              2021               2022                2021
Revenues
Net earned premiums                                     $   451.4          $ 436.0          $   1,363.0          $ 1,338.5
Fees and other income                                        32.7             35.1                102.8              109.1
Net investment income                                        18.1             19.5                 57.0               61.1
Total revenues                                              502.2            490.6              1,522.8            1,508.7
Benefits, losses and expenses
Policyholder benefits                                       309.4            260.3                697.7              631.8
Underwriting, selling, general and administrative
expenses                                                    217.8            215.1                658.4              641.7
Total benefits, losses and expenses                         527.2            475.4              1,356.1            1,273.5
Global Housing Adjusted EBITDA                          $   (25.0)         

$ 15.2 $ 166.7 $ 235.2


Impact of reportable catastrophes                       $   124.1          

$ 101.7 $ 150.6 $ 150.8


Net earned premiums, fees and other income
Lender-placed Insurance                                 $   262.2          $ 256.2          $     801.9          $   790.9
Multifamily Housing                                         119.9            121.7                362.0              361.2
Specialty and Other                                         102.0             93.2                301.9              295.5
Total                                                   $   484.1          $ 471.1          $   1,465.8          $ 1,447.6

For the Three Months Ended September 30, 2022 Compared to the Three Months Ended
September 30, 2021


Adjusted EBITDA decreased $40.2 million, or 264%, to $(25.0) million for Third
Quarter 2022 from $15.2 million for Third Quarter 2021. Pre-tax reportable
catastrophes for Third Quarter 2022 increased $22.4 million to $124.1 million,
compared to $101.7 million for Third Quarter 2021, primarily due to Hurricane
Ian. Reportable catastrophe losses for Hurricane Ian for Third Quarter 2022 were
$118.1 million inclusive of our $80 million pre-tax per-event retention and
$34.7 million of associated reinstatement premiums to restore up to Layer 3 of
our U.S. catastrophe reinsurance program. Excluding reportable catastrophes,
Adjusted EBITDA decreased $17.8 million, or 15%, year-over-year, primarily
driven by approximately $38.2 million of higher non-catastrophe loss experience
across all major products, including $24.3 million of prior period loss
development. In Lender-placed Insurance, the elevated loss experience and higher
catastrophe reinsurance costs from increased exposures were mostly offset by
higher average insured values and premium rate increases.

Total revenues increased $11.6 million, or 2%, to $502.2 million for Third
Quarter 2022 from $490.6 million for Third Quarter 2021. The increase was
primarily due to an increase in net earned premiums of $15.4 million, or 4%,
mostly from growth in Specialty and Other products and Lender-placed Insurance,
as higher average insured values, policies in force and premium rates were
partially offset by higher catastrophe reinsurance costs from increased
exposures and higher reinstatement premiums related to Hurricane Ian. The
increase in total revenues was partially offset by a decrease in fees and other
income of $2.4 million, or 7%, primarily due to lower transaction fees in our
Lender-placed Insurance business, and a decrease in net investment income of
$1.4 million, or 7%, primarily due to lower income from real estate-related
investments.

Total benefits, losses and expenses increased $51.8 million, or 11%, to
$527.2 million for Third Quarter 2022 from $475.4 million for Third Quarter
2021. Policyholder benefits increased $49.1 million, or 19%, primarily driven by
approximately $38.2 million of higher non-catastrophe loss experience across all
major products, largely within Lender-placed Insurance and Multifamily Housing,
including $24.3 million of prior period loss development mainly due to higher
claims severity related to inflation. The $24.3 million of prior period loss
development included approximately $10 million of prior accident year
development and an additional $14 million for current accident year development
for claims incurred in the six months ended June 30, 2022. The increase in
policyholder benefits was also due to higher reportable catastrophe losses.
Underwriting, selling, general and administrative expenses increased $2.7
million, or 1%, mainly due to lower ceding fee income from lower volumes in the
National Flood Insurance Program.

                                       42

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For the Nine Months Ended September 30, 2022 Compared to the Nine Months Ended
September 30, 2021


Adjusted EBITDA decreased $68.5 million, or 29%, to $166.7 million for Nine
Months 2022 from $235.2 million for Nine Months 2021, mainly driven by higher
non-catastrophe loss experience, primarily in Lender-placed Insurance due to
higher claims severity from inflation, particularly from elevated fire losses,
as well as higher catastrophe reinsurance premiums, including $34.7 million of
reinstatement premiums related to Hurricane Ian. The decrease was partially
offset by higher average insured values, policies in force and premium rates in
Lender-Placed Insurance.

Total revenues increased $14.1 million, or 1%, to $1.52 billion for Nine Months
2022 from $1.51 billion for Nine Months 2021. Net earned premiums increased
$24.5 million, or 2%, primarily due to higher average insured values, policies
in force and premium rates in our Lender-placed Insurance business, partially
offset by higher catastrophe reinsurance costs. The increase was partially
offset by a decrease in fees and other income of $6.3 million, or 6%, primarily
due to a decline in our Multifamily Housing and Lender-placed Insurance
businesses, and a decrease in net investment income of $4.1 million, or 7%,
primarily due to lower income from real estate-related investments.

Total benefits, losses and expenses increased $82.6 million, or 6%, to $1.36
billion for Nine Months 2022 from $1.27 billion for Nine Months 2021.
Policyholder benefits increased $65.9 million, or 10%, due to higher
non-catastrophe loss experience as described above. Underwriting, selling,
general and administrative expenses increased $16.7 million, or 3%, mainly due
to higher operating costs to support growth.


                                       43

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Corporate and Other

The tables below present information regarding the Corporate and Other's segment
results of operations for the periods indicated:


                                                   For the Three Months Ended           For the Nine Months Ended
                                                          September 30,                       September 30,
                                                      2022              2021              2022              2021
Revenues
Net earned premiums                               $       -          $     -          $       -          $     -
Fees and other income                                   0.1                -                0.5              0.2
Net investment income                                   5.6              7.3               20.9             23.1

Total revenues                                          5.7              7.3               21.4             23.3
Benefits, losses and expenses
Policyholder benefits                                   0.1                -                0.5                -
General and administrative expenses                    30.5             30.3               92.9             91.1
Total benefits, losses and expenses                    30.6             30.3               93.4             91.1
Corporate and Other Adjusted EBITDA               $   (24.9)         $ 

(23.0) $ (72.0) $ (67.8)

For the Three Months Ended September 30, 2022 Compared to the Three Months Ended
September 30, 2021


Adjusted EBITDA was $(24.9) million for Third Quarter 2022 compared to $(23.0)
million for Third Quarter 2021. The change in results was primarily due to a
decrease in net investment income.

Total revenues decreased $1.6 million, or 22%, to $5.7 million for Third Quarter
2022 from $7.3 million for Third Quarter 2021, primarily driven by a decrease in
net investment income of $1.7 million, or 23%, mostly due to a reduction in
income from limited partnerships, partially offset by increased income from
higher yields.

Total benefits, losses and expenses increased $0.3 million, or 1%, to $30.6
million
for Third Quarter 2022 from $30.3 million for Third Quarter 2021,
primarily driven by higher employee-related and third party consulting expenses.

For the Nine Months Ended September 30, 2022 Compared to the Nine Months Ended
September 30, 2021


Adjusted EBITDA was $(72.0) million for Nine Months 2022 compared to $(67.8)
million for Nine Months 2021. The change in results was primarily due to higher
employee-related and technology expenses.

Total revenues decreased $1.9 million, or 8%, to $21.4 million for Nine Months
2022 from $23.3 million for Nine Months 2021 primarily driven by a decrease in
net investment income of $2.2 million, or 10%, mostly due a reduction in income
from limited partnerships, partially offset by increased income from higher
invested assets balances, primarily reflecting the remaining proceeds from the
sale of Global Preneed.

Total benefits, losses and expenses increased $2.3 million, or 3%, to $93.4
million for Nine Months 2022 from $91.1 million for Nine Months 2021. General
and administrative expenses increased $1.8 million, or 2%, to $92.9 million for
Nine Months 2022 from $91.1 million for Nine Months 2021, primarily due to
higher employee-related and technology expenses.

                                       44

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Investments


We had total investments of $7.52 billion and $8.67 billion as of September 30,
2022 and December 31, 2021, respectively. Net unrealized gains on our fixed
maturity securities portfolio decreased by $1,037.1 million during Nine Months
2022, from $311.4 million as of December 31, 2021 to a net unrealized loss of
$725.7 million as of September 30, 2022, primarily due to an increase in
Treasury yields.

The following table shows the credit quality of our fixed maturity securities
portfolio as of the dates indicated:


                                                                           Fair value as of
Fixed Maturity Securities by Credit Quality           September 30, 2022                       December 31, 2021
Aaa / Aa / A                                  $  3,508.3                 57.2  %       $  4,066.5                 56.4  %
Baa                                              2,246.8                 36.6  %          2,719.0                 37.7  %
Ba                                                 312.4                  5.1  %            333.7                  4.6  %
B and lower                                         70.4                  1.1  %             96.1                  1.3  %
Total                                         $  6,137.9                100.0  %       $  7,215.3                100.0  %

The following table shows the major categories of net investment income for the
periods indicated:


                                               Three Months Ended September 

30, Nine Months Ended September 30,

                                                    2022                2021                2022                2021
Fixed maturity securities                      $      68.1          $    58.4          $     196.4          $   173.3
Equity securities                                      3.8                3.8                 11.3               11.1
Commercial mortgage loans on real estate               3.7                2.3                 11.0                5.7
Short-term investments                                 1.4                0.4                  2.7                1.6
Other investments                                      3.1               13.1                 38.1               48.5
Cash and cash equivalents                              7.0                2.3                 13.1                6.0
Total investment income                               87.1               80.3                272.6              246.2
Investment expenses                                   (3.6)              (4.3)               (10.8)             (11.0)
Net investment income                          $      83.5          $    76.0          $     261.8          $   235.2


Net investment income increased $7.5 million, or 10%, to $83.5 million for Third
Quarter 2022 from $76.0 million for Third Quarter 2021, primarily driven by
higher income from fixed maturity securities and cash and cash equivalents due
to higher yields partially offset by lower income from other investments due to
the absence of gains recorded in Third Quarter 2021 from the sale of one real
estate property and from an increase in valuations of certain limited
partnerships.

Net realized losses on investments and fair value changes to equity securities
were $27.4 million for Third Quarter 2022 compared to net gains of $112.1
million for Third Quarter 2021. The change in Third Quarter 2022 was primarily
driven by $21.9 million of net realized losses from sales of fixed maturity
securities. The change in Third Quarter 2021 was primarily driven by $94.0
million of net unrealized gains from changes in fair value of equity securities
that were driven by $74.6 million of unrealized gains from three equity
positions that went public in Third Quarter 2021, and $16.1 million of net
realized gains from sales of fixed maturity securities.

Net investment income increased $26.6 million, or 11%, to $261.8 million for
Nine Months 2022 from $235.2 million for Nine Months 2021, primarily driven by
higher income from fixed maturity securities and cash and cash equivalents due
to higher yields and higher income from commercial mortgage loans due to higher
asset levels and prepayment fees. This was partially offset by lower income from
other investments mostly due to a reduction in income from limited partnerships.

Net realized losses on investments and fair value changes to equity securities
were $166.2 million for Nine Months 2022 compared to net gains of $123.2 million
for Nine Months 2021. The change in Nine Months 2022 was primarily driven by
$122.4 million of net unrealized losses from changes in fair value of equity
securities that included a $94.3 million decrease in net unrealized gains from
four equity positions that went public in 2021 through SPAC mergers. The net
realized losses were also driven by $63.0 million of net realized losses on
sales of fixed maturity securities, partially offset by $20.0 million of net
realized gains on sales of equity securities. The change in Nine Months 2021 was
primarily driven by $98.5 million of net unrealized gains from changes in fair
value of equity securities that included $74.6 million of unrealized gains from
three equity positions that went public in Third Quarter 2021, and $19.3 million
of net realized gains from sales of fixed maturity securities.
                                       45
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As of September 30, 2022, we owned $17.3 million of securities guaranteed by
financial guarantee insurance companies. Included in this amount was $14.5
million of municipal securities, whose credit rating was A+ with the guarantee,
but would have had a rating of AA- without the guarantee.

For more information on our investments, see Notes 7 and 8 to the Consolidated
Financial Statements included elsewhere in this Report.

Catastrophe Reinsurance Program


In July 2022, we finalized our 2022 property catastrophe reinsurance program.
2022 reinsurance premiums for this program are estimated to be approximately
$189.0 million pre-tax compared to approximately $149.0 million pre-tax for
2021, predominantly reflecting increased lender-placed exposure as a result of
higher average insured values compared to 2021. Coverage was placed with more
than 40 reinsurers that are all rated A- or better by A.M. Best. Actual
reinsurance premiums will vary if exposure changes significantly from estimates
or if reinstatement premiums are required due to catastrophe events.

The U.S. per-occurrence catastrophe coverage includes a main reinsurance program
providing $1.16 billion of coverage in excess of an $80.0 million retention per
event. In addition, it includes multiyear reinsurance contracts covering
approximately 45% of the U.S. program, reducing volatility in future reinsurance
costs. All layers of the program allow for one automatic reinstatement, except
the first layer, which has two reinstatements. The 2022 U.S. program also
maintains a cascading feature that provides multi-event protection in which
higher coverage layers (Layers 3 through 6) drop down to $110.0 million as the
lower layers and reinstatement limit are exhausted. Layer 7 does not cascade,
with a retention of $955.0 million and a limit of $290.0 million. When combined
with the Florida Hurricane Catastrophe Fund, the U.S. program is covered for
gross Florida losses of up to approximately $1.37 billion.

The 2022 catastrophe reinsurance program also includes Caribbean protection of
up to $150.0 million, including a $2.0 million co-participation on the top
layer, in excess of a $20.0 million retention.

Liquidity and Capital Resources


Management believes that we will have sufficient liquidity to satisfy our needs
over the next twelve months, including the ability to pay interest on our debt
and dividends on our common stock.

Regulatory Requirements


Assurant, Inc. is a holding company and, as such, has limited direct operations
of its own. Our assets consist primarily of the capital stock of our
subsidiaries. Accordingly, our future cash flows depend upon the availability of
dividends and other statutorily permissible payments from our subsidiaries, such
as payments under our tax allocation agreement and under management agreements
with our subsidiaries. Our subsidiaries' ability to pay such dividends and make
such other payments is regulated by the states and territories in which our
subsidiaries are domiciled. These dividend regulations vary from jurisdiction to
jurisdiction and by type of insurance provided by the applicable subsidiary, but
generally require our insurance subsidiaries to maintain minimum solvency
requirements and limit the amount of dividends these subsidiaries can pay to the
holding company. See "Item 1-Business-Regulation-U.S. Insurance Regulation" and
"Item 1A-Risk Factors-Legal and Regulatory Risks-Changes in insurance regulation
may reduce our profitability and limit our growth" in our 2021 Annual Report.
Along with solvency regulations, the primary driver in determining the amount of
capital used for dividends from insurance subsidiaries is the level of capital
needed to maintain desired financial strength ratings from A.M. Best Company
("A.M. Best"). For the year ending December 31, 2022, the maximum amount of
dividends our regulated U.S. domiciled insurance subsidiaries could pay us,
under applicable laws and regulations currently in effect and without prior
regulatory approval, is approximately $475.3 million. In addition, our
international and non-insurance subsidiaries provide additional sources of
dividends.

Regulators or rating agencies could become more conservative in their
methodology and criteria, increasing capital requirements for our insurance
subsidiaries or the enterprise.


In August 2022, A.M. Best upgraded the insurance financial strength ratings on
our insurance operating subsidiaries, American Bankers Life Assurance Company of
Florida ("ABLAC") and Caribbean American Life Assurance Company, to A from A-
with a stable outlook. In June 2022, Moody's upgraded the senior debt rating of
Assurant, Inc. to Baa2 from Baa3 with a stable outlook and upgraded the
insurance financial strength ratings on our insurance operating subsidiaries,
American Bankers Insurance Company of Florida, ABLAC and American Security
Insurance Company, to A2 from A3 with a stable outlook. For further information
on our ratings and the risks of ratings downgrades, see "Item
1-Business-Ratings" and "Item 1A-Risk Factors-Financial Risks-A decline in the
financial strength ratings of our insurance subsidiaries could adversely affect
our results of operations and financial condition" in our 2021 Annual Report.

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Holding Company


As of September 30, 2022, we had approximately $528.8 million in holding company
liquidity, which was $303.8 million above our targeted minimum level of $225.0
million. The target minimum level of holding company liquidity, which can be
used for unforeseen capital needs at our subsidiaries or liquidity needs at the
holding company, is calibrated based on approximately one year of corporate
operating and interest expenses. We use the term "holding company liquidity" to
represent the portion of cash and other liquid marketable securities held at
Assurant, Inc., out of a total of $615.3 million of holding company investment
securities and cash, which we are not otherwise holding for a specific purpose
as of the balance sheet date. We can use such assets for stock repurchases,
stockholder dividends, acquisitions and other corporate purposes.

Dividends or returns of capital paid by our subsidiaries, net of infusions and
excluding amounts used for acquisitions or received for dispositions, were
$460.4 million for Nine Months 2022. In 2021, dividends, net of infusions and
excluding amounts used for acquisitions or received for dispositions, were
$728.6 million (including approximately $12.0 million of dividends from
subsidiaries, net of infusions, included in the disposed Global Preneed
business). We use these cash inflows primarily to pay holding company operating
expenses, to make interest payments on indebtedness, to make dividend payments
to our common stockholders, to fund investments and acquisitions, and to
repurchase our common stock. From time to time, we may also seek to purchase
outstanding debt in open market repurchases or privately negotiated
transactions.

Dividends and Repurchases

During Nine Months 2022, we made common stock repurchases and paid common stock
dividends of $667.3 million.


We paid dividends of $0.68 per common share on September 19, 2022 to
stockholders of record as of August 29, 2022. Any determination to pay future
dividends on our outstanding common stock will be at the discretion of the Board
and will be dependent upon various factors, including: our subsidiaries'
payments of dividends and other statutorily permissible payments to us; our
results of operations and cash flows; our financial condition and capital
requirements; general business conditions and growth prospects; any legal, tax,
regulatory and contractual restrictions on the payment of dividends; and any
other factors the Board deems relevant. The Credit Facility (as defined below)
also contains limitations on our ability to pay dividends to our stockholders
and repurchase capital stock if we are in default, or such dividend payments or
repurchases would cause us to be in default, of our obligations thereunder. In
addition, if we elect to defer the payment of interest on our 7.00%
Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25%
Subordinated Notes due January 2061 (refer to "-Senior and Subordinated Notes"
below), we generally may not make payments on or repurchase any shares of our
capital stock.

During Nine Months 2022, we repurchased 3,257,671 shares of our outstanding
common stock at a cost of $554.6 million, exclusive of commissions. In May 2021,
the Board authorized a share repurchase program for up to $900.0 million,
respectively, of our outstanding common stock. As of September 30, 2022, $287.5
million aggregate cost at purchase remained unused under the repurchase
authorization. The timing and the amount of future repurchases will depend on
various factors, including those listed above.

We expect to deploy capital primarily to support business growth by funding
investments, mergers and acquisitions and returning capital to shareholders in
the form of share repurchases and dividends, subject to Board approval and
market conditions. As previously announced, we returned $900.0 million of the
Global Preneed net proceeds through share repurchases within one year of
closing, completing the return in second quarter 2022. For additional
information, refer to Note 4 to the Consolidated Financial Statements included
elsewhere in this Report.

Assurant Subsidiaries

The primary sources of funds for our subsidiaries consist of premiums and fees
collected, proceeds from the sales and maturity of investments and net
investment income. Cash is primarily used to pay insurance claims, agent
commissions, operating expenses and taxes. We generally invest our subsidiaries'
excess funds in order to generate investment income.

We conduct periodic asset liability studies to measure the duration of our
insurance liabilities, to develop optimal asset portfolio maturity structures
for our significant lines of business and ultimately to assess that cash flows
are sufficient to meet the timing of cash needs. These studies are conducted in
accordance with formal company-wide Asset Liability Management guidelines.

To complete a study for a particular line of business, models are developed to
project asset and liability cash flows and balance sheet items under a large,
varied set of plausible economic scenarios. These models consider many factors
including the current investment portfolio, the required capital for the related
assets and liabilities, our tax position and projected cash flows from both
existing and projected new business. For risks related to modeling, see "Item 1A
- Risk Factors - Financial Risks -

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Actual results may differ materially from the analytical models we use to assist
in our decision-making in key areas such as pricing, catastrophe risks,
reserving and capital management." in our 2021 Annual Report.


Alternative asset portfolio structures are analyzed for significant lines of
business. An investment portfolio maturity structure is then selected from these
profiles given our return hurdle and risk appetite. Scenario testing of
significant liability assumptions and new business projections is also
performed.

Our liabilities generally have limited policyholder optionality, which means
that the timing of payments is generally insensitive to the interest rate
environment. In addition, our investment portfolio is largely comprised of
highly liquid fixed-maturity securities with a sufficient component of such
securities invested that are near maturity which may be sold with minimal risk
of loss to meet cash needs.

Generally, our subsidiaries' premiums, fees and investment income, along with
planned asset sales and maturities, provide sufficient cash to pay claims and
expenses. However, there may be instances when unexpected cash needs arise in
excess of that available from usual operating sources. In such instances, we
have several options to raise needed funds, including selling assets from the
subsidiaries' investment portfolios, using holding company cash (if available),
issuing commercial paper, or drawing funds from the Credit Facility.

Senior and Subordinated Notes

The following table shows the principal amount and carrying value of our
outstanding debt, less unamortized discount and issuance costs as applicable, as
of September 30, 2022 and December 31, 2021:


                                                           September 30, 2022                                  December 31, 2021
                                                Principal Amount           Carrying Value          Principal Amount           Carrying Value
4.20% Senior Notes due September 2023         $           225.0          $  

224.5 $ 300.0 $ 299.0
4.90% Senior Notes due March 2028

                         300.0                    297.8                     300.0                    297.5
3.70% Senior Notes due February 2030                      350.0                    347.5                     350.0                    347.3
2.65% Senior Notes due January 2032                       350.0                    346.6                     350.0                    346.4
6.75% Senior Notes due February 2034                      275.0                    272.5                     275.0                    272.4
7.00% Fixed-to-Floating Rate Subordinated
Notes due March 2048                                      400.0                    396.3                     400.0                    395.9
5.25% Subordinated Notes due January 2061                 250.0                    244.1                     250.0                    244.0
Total Debt                                                               $       2,129.3                                    $       2,202.5


In June 2022, we redeemed $75.0 million of the $300.0 million then outstanding
aggregate principal amount of our 4.20% Senior Notes due September 2023 (the
"2023 Senior Notes") at a make-whole premium plus accrued and unpaid interest to
the redemption date. In connection with the redemption, we recognized a loss on
extinguishment of debt of $0.9 million, which included a $1.0 million make-whole
premium and $0.2 million in debt issuance costs that were written off, partially
offset by $0.3 million in unamortized hedging gains recognized upon
extinguishment. The gain was reclassified out of accumulated other comprehensive
income and recorded through interest expense. In the next five years, we have
one upcoming debt maturity in September 2023 when the 2023 Senior Notes will
become due and payable.

Credit Facility and Commercial Paper Program


We have a $500.0 million five-year senior unsecured revolving credit facility
(the "Credit Facility") with a syndicate of banks arranged by JPMorgan Chase
Bank, N.A. and Wells Fargo Bank, National Association. The Credit Facility
provides for revolving loans and the issuance of multi-bank, syndicated letters
of credit and letters of credit from a sole issuing bank in an aggregate amount
of $500.0 million, which may be increased up to $700.0 million. The Credit
Facility is available until December 2026, provided we are in compliance with
all covenants. The Credit Facility has a sublimit for letters of credit issued
thereunder of $50.0 million. The proceeds from these loans may be used for our
commercial paper program or for general corporate purposes.

We made no borrowings using the Credit Facility during Nine Months 2022 and no
loans were outstanding as of September 30, 2022.


Our commercial paper program requires us to maintain liquidity facilities either
in an available amount equal to any outstanding notes from the program or in an
amount sufficient to maintain the ratings assigned to the notes issued from the

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program. Our commercial paper is rated AMB-1 by A.M. Best, P-2 by Moody's and
A-2 by S&P. Our subsidiaries do not maintain commercial paper or other borrowing
facilities. This program is currently backed up by the Credit Facility, of which
$495.5 million out of the $500.0 million was available as of September 30, 2022,
due to $4.5 million of letters of credit outstanding.

We did not use the commercial paper program during Nine Months 2022 and there
were no amounts relating to the commercial paper program outstanding as of
September 30, 2022.

Cash Flows

We monitor cash flows at the consolidated, holding company and subsidiary
levels. Cash flow forecasts at the consolidated and subsidiary levels are
provided on a monthly basis, and we use trend and variance analyses to project
future cash needs making adjustments to the forecasts when needed.

The table below shows our net cash flows for the periods indicated:


                                                                     For 

the Nine Months Ended September

30,

Net cash provided by (used in):                                           2022                  2021
Operating activities - continuing operations                        $       319.8          $     375.8
Operating activities - discontinued operations                                  -                151.2
Operating activities                                                        319.8                527.0
Investing activities - continuing operations                               (134.9)               181.9
Investing activities - discontinued operations                                  -               (145.2)
Investing activities                                                       (134.9)                36.7
Financing activities - continuing operations                               (767.2)              (757.4)
Financing activities - discontinued operations                                  -                    -
Financing activities                                                       (767.2)              (757.4)

Effect of exchange rate changes on cash and cash equivalents -
continuing operations

                                                       (42.7)                (7.2)

Effect of exchange rate changes on cash and cash equivalents -
discontinued operations

                                                         -                  0.2
Effect of exchange rate changes on cash and cash equivalents                (42.7)                (7.0)
Net change in cash                                                  $      (625.0)         $    (200.7)


We typically generate operating cash inflows from premiums collected from our
insurance products, fees received for services and income received from our
investments, while outflows consist of policy acquisition costs, benefits paid
and operating expenses. These net cash flows are then invested to support the
obligations of our insurance products and required capital supporting these
products. Our cash flows from operating activities are affected by the timing of
premiums, fees, and investment income received and expenses paid.

Net cash provided by operating activities from continuing operations was $319.8
million for Nine Months 2022 compared to net cash provided by operating
activities from continuing operations of $375.8 million for Nine Months 2021.
The decrease in net operating cash flows was primarily driven by the timing of
our mobile business operations mostly due to lower collections of premiums and
fee receivables and an increase in payments to vendors for the acquisition of
mobile devices used to meet insurance claims or generate profits through sales
to third parties. These decreases were partially offset by an increase in cash
from the receipt of a tax refund that was in excess of tax payments for Nine
Months 2022.

Net cash used in investing activities from continuing operations was $134.9
million for Nine Months 2022 compared to net cash provided by investing
activities from continuing operations of $181.9 million for Nine Months 2021.
The decrease in net cash provided by investing activities was primarily driven
by a decrease in cash from sales of subsidiaries, partially offset by an
increase in cash from sales and maturities of fixed maturity securities, net of
purchases, due to the ongoing management of our investment portfolio. Nine
Months 2021 included the receipt of $1.31 billion of proceeds, net of $27.3
million of cash transferred, from the sale of the disposed Global Preneed
business that were mostly reinvested in short term high quality liquid fixed
income investments.

Net cash used in financing activities from continuing operations was $767.2
million for Nine Months 2022 compared to net cash used in financing activities
from continuing operations of $757.4 million for Nine Months 2021. The increase
in net cash used in financing activities was primarily due a higher cash outflow
for share repurchases mostly due to an increase in the cost per share of
repurchases for Nine Months 2022 compared to Nine Months 2021.

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The table below shows our cash outflows for interest and dividends for the
periods indicated:

                                       For the Nine Months Ended September 30,
                                                  2022                            2021
 Interest paid on debt       $              105.3                               $ 107.0
 Common stock dividends                     112.7                                 118.5
 Preferred stock dividends                      -                                   4.7
 Total                       $              218.0                               $ 230.2


Letters of Credit

In the normal course of business, letters of credit are issued primarily to
support reinsurance arrangements in which we are the reinsurer. These letters of
credit are supported by commitments under which we are required to indemnify the
financial institution issuing the letter of credit if the letter of credit is
drawn. We had $7.0 million and $7.2 million of letters of credit outstanding as
of September 30, 2022 and December 31, 2021, respectively.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that are reasonably
likely to have a material effect on the financial condition, results of
operations, liquidity or capital resources of the Company.

Older

AM Best Affirms Credit Ratings of Aegon N.V.’s U.S. Subsidiaries

Newer

ALIGNMENT HEALTHCARE, INC. – 10-Q – Management's Discussion and Analysis of Financial Condition and Results of Operations.

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