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

(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,
2022 and accompanying notes included in our Annual Report on Form 10-K for the
year ended December 31, 2022 (the "2022 Annual Report") filed with the U.S.
Securities and Exchange Commission (the "SEC") and the unaudited consolidated
financial statements for the three months ended March 31, 2023 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 months ended March 31, 2023 ("First Quarter 2023" and
"Three Months 2023") and the three months ended March 31, 2022 ("First Quarter
2022" and "Three Months 2022").

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 or divest of non-strategic 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 and availability of mobile devices, and 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 climate change and the current inflationary environment;

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

(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;

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

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

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

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

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

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

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

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

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

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

(xxiv)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;

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

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

(xxvii)breaches of our information technology 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;

(xxviii)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;

(xxix)the impact of litigation and regulatory actions;

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

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

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

(xxxiii)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
2022 Annual Report, and "Item 1A-Risk Factors" below and in our 2022 Annual
Report.

Reportable Segments

As of March 31, 2023, 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, leased and financed solutions and related services (referred to as
"Global Automotive");

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

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

We define Adjusted EBITDA, our segment measure of profitability, as net income,
excluding net realized gains (losses) on investments and fair value changes to
equity securities, non-core operations (defined below), restructuring costs
related to strategic exit activities (outside of normal periodic restructuring
and cost management activities), Assurant Health runoff operations (described
above), interest expense, provision (benefit) for income taxes, depreciation
expense, amortization of purchased intangible assets, as well as other highly
variable or unusual items.

Revision of Prior Period Financial Statements

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"). The non-core operations
have been or are in the process of being exited by the Company. All prior period
amounts have been revised, which impacts segment Adjusted EBITDA but does not
impact consolidated net income. See Note 4 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

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Notes 2 and 16 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.

Executive Summary

Summary of Financial Results

Consolidated net income decreased $35.4 million, or 24%, to $113.6 million for
First Quarter 2023 from $149.0 million for First Quarter 2022. The decline was
primarily due to lower earnings in Global Housing, including higher 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), and Global
Lifestyle, as well as a higher effective tax rate compared to a favorable rate
in the prior year period. The decline was partially offset by a decrease in net
unrealized losses.

Global Lifestyle Adjusted EBITDA decreased $27.8 million, or 12%, to $198.9
million for First Quarter 2023 from $226.7 million for First Quarter 2022,
primarily driven by lower Connected Living results mainly from an increase in
claims costs within extended service contracts compared to favorable loss
experience in first quarter 2022, as well as weaker international performance
mainly from Asia Pacific and the unfavorable impact of foreign exchange. Global
Automotive also declined from ongoing higher claims costs. The decline in Global
Lifestyle was partially offset by higher investment income.

Global Lifestyle net earned premiums, fees and other income increased $51.7
million, or 3%, to $2.04 billion for First Quarter 2023 from $1.99 billion for
First Quarter 2022, primarily driven by prior period sales in Global Automotive.
Connected Living decreased mainly from the approximately $65.0 million impact
from previously disclosed mobile contract changes, as well as runoff mobile
programs, which were partially offset by growth in extended service contracts
and North American mobile subscribers.

Global Housing Adjusted EBITDA decreased $36.0 million, or 34%, to $68.4 million
for First Quarter 2023 from $104.4 million for First Quarter 2022. Pre-tax
reportable catastrophes increased $43.3 million, due to severe weather and
tornado events. Excluding reportable catastrophes, Adjusted EBITDA increased
$7.3 million, or 7%, primarily due to Homeowners from higher lender-placed net
earned premiums, which was partially offset by $32.0 million of higher
non-catastrophe loss experience across all major products and increased
catastrophe reinsurance costs.

Global Housing net earned premiums, fees and other income increased $48.0
million, or 11%, to $505.3 million for First Quarter 2023 from $457.3 million
for First Quarter 2022, largely driven by Homeowners from an increase in
lender-placed policies in-force as well as higher average insured values and
premium rates.

Corporate and Other Adjusted EBITDA was $(24.4) million for First Quarter 2023
compared to $(22.2) million for First Quarter 2022. The change in results was
primarily due to lower net investment income from lower asset balances.

Critical Factors Affecting Results

Our results depend on, among other things, the appropriateness of our product
pricing, underwriting, the accuracy of our reserving methodology for future
policyholder benefits and claims, the frequency and severity of reportable and
non-reportable catastrophes, returns on and values of invested assets, our
investment income and our ability to realize greater operational efficiencies
and manage our expenses. Our results also depend on our ability to profitably
grow our businesses, including our Connected Living and Global Automotive
businesses, and improve our performance in our Homeowners business. Factors
affecting these items, including conditions in the financial markets, the global
economy, political conditions and the markets in which we operate, fluctuations
in exchange rates, interest rates and inflation, including the current period of
inflationary pressures, may have a material adverse effect on our results of
operations or financial condition. For more information on these and other
factors that could affect our results, see "Item 1A-Risk Factors" below and in
our 2022 Annual Report, and "Item 7-Management's Discussion and Analysis of
Financial Condition and Results of Operations-Critical Factors Affecting
Results" in our 2022 Annual Report.

Our results may be impacted by our ability to continue to grow in the markets in
which we operate, including in our Connected Living and Global Automotive
businesses, which will be impacted by our ability to provide a superior
digital-first customer experience, including from our investments in technology
and digital initiatives, and capitalize on the smart home opportunity. Our
mobile business is subject to volatility in mobile device trade-in volumes and
margins 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 Homeowners revenues will be impacted by changes in the housing market. In
addition, across many of our businesses, we must respond to the threat of
disruption and competition for talent, which has increased due to labor
shortages and wage inflation. See "Item 1A-Risk Factors-Business, Strategic and
Operational Risks-Significant competitive

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pressures, changes in customer preferences and disruption could adversely affect
our results of operations", "-Our mobile business is subject to the risk of
declines in the value and availability of mobile devices in our inventory, and
to export compliance and other risks" 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 2022 Annual Report.

Critical Accounting Policies and Estimates

Our 2022 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
2022 Annual Report were consistently applied to the unaudited interim
Consolidated Financial Statements for First Quarter 2023.

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.

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Results of Operations

Assurant Consolidated

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

                                                                    For the Three Months Ended March 31,
                                                                         2023                  2022
Revenues:
Net earned premiums                                                 $    2,265.5          $   2,136.4
Fees and other income                                                      282.7                322.4
Net investment income                                                      105.2                 86.3

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

                                                                 (10.6)               (62.4)
Total revenues                                                           2,642.8              2,482.7
Benefits, losses and expenses:
Policyholder benefits                                                      645.6                490.0
Underwriting, selling, general and administrative expenses               1,823.2              1,790.6

Interest expense                                                            27.0                 26.9
Gain on extinguishment of debt                                              (0.1)                   -
Total benefits, losses and expenses                                      2,495.7              2,307.5
Income before provision for income taxes                                   147.1                175.2
Provision for income taxes                                                  33.5                 26.2
Net income                                                          $      113.6          $     149.0

For the Three Months Ended March 31, 2023 Compared to the Three Months Ended
March 31, 2022

Net income decreased $35.4 million, or 24%, to $113.6 million for First Quarter
2023 from $149.0 million for First Quarter 2022, primarily due to lower earnings
in Global Housing, including $34.2 million of higher reportable catastrophes,
and in Global Lifestyle, as well as the absence of a $9.0 million one-time tax
benefit from one of our international businesses that was recorded in First
Quarter 2022. The decrease was partially offset by lower net unrealized losses
from changes in fair value of equity securities. First Quarter 2022 included
$43.5 million of after-tax net unrealized losses from changes in fair value of
equity securities, mostly related to four equity positions that went public
through SPAC mergers and preferred stocks due to an increase in interest rates,
compared to $1.8 million of after-tax net unrealized losses in First Quarter
2023.

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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 March 31,

                                                                         2023                  2022
Revenues
Net earned premiums                                                 $    1,788.1          $   1,700.4

Fees and other income                                                      252.2                288.2
Net investment income                                                       76.7                 57.4
Total revenues                                                           2,117.0              2,046.0
Benefits, losses and expenses
Policyholder benefits                                                      371.0                310.9
Underwriting, selling, general and administrative expenses               1,547.1              1,508.4
Total benefits, losses and expenses                                      1,918.1              1,819.3
Global Lifestyle Adjusted EBITDA                                    $      

198.9 $ 226.7

Net earned premiums, fees and other income:
Connected Living                                                    $    1,026.6          $   1,077.4
Global Automotive                                                        1,013.7                911.2
Total                                                               $    2,040.3          $   1,988.6

Net earned premiums, fees and other income:
Domestic                                                            $    1,609.8          $   1,536.3
International                                                              430.5                452.3
Total                                                               $    2,040.3          $   1,988.6

For the Three Months Ended March 31, 2023 Compared to the Three Months Ended
March 31, 2022

Adjusted EBITDA decreased $27.8 million, or 12%, to $198.9 million for First
Quarter 2023 from $226.7 million for First Quarter 2022, primarily due to
declines across Connected Living and Global Automotive, driven by elevated loss
experience from higher claims costs primarily due to inflation in both Global
Automotive and extended service contracts within Connected Living, as well as
weaker international performance in Connected Living, mainly from Asia Pacific
and the unfavorable impact of foreign exchange, and lower margins in our
domestic mobile trade-in and upgrade programs, due to device mix from carrier
promotions and slightly lower volumes. These decreases were partially offset by
higher net investment income (after client profit sharing adjustments), organic
growth in Global Automotive and modest domestic mobile subscriber growth.

Total revenues increased $71.0 million, or 3%, to $2.12 billion for First
Quarter 2023 from $2.05 billion for First Quarter 2022. Net earned premiums
increased $87.7 million, or 5%, primarily driven by continued organic growth
from strong prior period U.S. sales in our Global Automotive business across all
distribution channels and growth in extended service contracts and domestic
mobile subscribers. This was partially offset by the run-off of certain global
mobile programs, the impact of foreign exchange and a mobile program contract
change that resulted in lower retention of premiums net of reinsurance. Net
investment income increased $19.3 million, or 34%, primarily due to higher
yields on fixed maturity securities, cash and short-term investments. The
increase in total revenues was partially offset by a decrease in fees and other
income of $36.0 million, or 12%, mainly due to a mobile program contract change
related to an in-store mobile service and repair program.

Total benefits, losses and expenses increased $98.8 million, or 5%, to $1.92
billion for First Quarter 2023 from $1.82 billion for First Quarter 2022.
Policyholder benefits increased $60.1 million, or 19%, primarily due to elevated
loss experience from higher claims costs primarily due to inflation in both
Global Automotive and extended service contracts within Connected Living, as
well as growth in the Global Automotive business. Underwriting, selling, general
and administrative expenses increased $38.7 million, or 3%, primarily due to
higher commission expenses from growth in the Global Automotive business,
partially offset by lower cost of sales mainly due to a mobile program contract
change related to an in-store mobile service and repair program.

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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 March 31,

                                                                          2023                  2022
Revenues
Net earned premiums                                                 $       475.0          $     423.5
Fees and other income                                                        30.3                 33.8
Net investment income                                                        21.2                 18.9
Total revenues                                                              526.5                476.2
Benefits, losses and expenses
Policyholder benefits                                                       258.9                163.0
Underwriting, selling, general and administrative expenses                  199.2                208.8
Total benefits, losses and expenses                                         458.1                371.8
Global Housing Adjusted EBITDA                                      $       

68.4 $ 104.4

Impact of reportable catastrophes                                   $       

49.5 $ 6.2

Net earned premiums, fees and other income
Homeowners                                                          $       391.4          $     337.4
Renters and Other                                                           113.9                119.9
Total                                                               $       505.3          $     457.3

For the Three Months Ended March 31, 2023 Compared to the Three Months Ended
March 31, 2022

Adjusted EBITDA decreased $36.0 million, or 34%, to $68.4 million for First
Quarter 2023 from $104.4 million for First Quarter 2022. Pre-tax reportable
catastrophes for First Quarter 2023 increased $43.3 million to $49.5 million,
compared to $6.2 million for First Quarter 2022, due to severe weather and
tornado events. Excluding reportable catastrophes, Adjusted EBITDA increased
$7.3 million, or 7%, mainly due to improved performance in Homeowners from
higher lender-placed net earned premiums. The increase was partially offset by
$32.0 million of higher non-catastrophe loss experience across all major
products, driven by higher claims severity primarily due to inflation, and
increased catastrophe reinsurance costs.

Total revenues increased $50.3 million, or 11%, to $526.5 million for First
Quarter 2023 from $476.2 million for First Quarter 2022. Net earned premiums
increased $51.5 million, or 12%, primarily driven by our Homeowners business
from higher lender-placed policies in force, average insured values and premium
rates, including contributions from new and existing clients, partially offset
by exits from certain international markets and higher catastrophe reinsurance
costs. Net investment income increased $2.3 million, or 12%, primarily due to
higher yields on fixed maturity securities, cash and short term investments,
partially offset by lower real estate related income. The increase in total
revenues was partially offset by a $3.5 million, or 10%, decrease in fees and
other income, mainly driven by a decline in Renters and Other.

Total benefits, losses and expenses increased $86.3 million, or 23%, to
$458.1 million for First Quarter 2023 from $371.8 million for First Quarter
2022. Policyholder benefits increased $95.9 million, or 59%, due to higher
non-catastrophe and catastrophe loss experience as described above. The increase
in total benefits, losses and expenses was partially offset by a $9.6 million,
or 5%, decrease in underwriting, selling, general and administrative expenses,
primarily due to exits from certain international markets and higher
reimbursements from the National Flood Insurance Program for processing flood
claims for Hurricane Ian.

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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 March 31,

                                                                      2023                     2022
Revenues
Net earned premiums                                          $                 -          $          -
Fees and other income                                                        0.1                   0.3
Net investment income                                                        4.5                   8.5

Total revenues                                                               4.6                   8.8
Benefits, losses and expenses
Policyholder benefits                                                        0.1                     -
General and administrative expenses                                         28.9                  31.0
Total benefits, losses and expenses                                         29.0                  31.0
Corporate and Other Adjusted EBITDA                          $             

(24.4) $ (22.2)

For the Three Months Ended March 31, 2023 Compared to the Three Months Ended
March 31, 2022

Adjusted EBITDA was $(24.4) million for First Quarter 2023 compared to $(22.2)
million for First Quarter 2022. The change in results was primarily due to lower
net investment income, mostly due to lower invested assets from the use of the
Global Preneed sale proceeds in the prior year for share repurchases, partially
offset by lower general and administrative expenses.

Total revenues decreased $4.2 million, or 48%, to $4.6 million for First Quarter
2023 from $8.8 million for First Quarter 2022, primarily driven by a decrease in
net investment income of $4.0 million, or 47%, mostly due to lower invested
assets from the use of the Global Preneed sale proceeds in the prior year for
share repurchases and the reduction of net investment income from a subsidiary
that was sold in second quarter 2022, partially offset by higher cash yields.

Total benefits, losses and expenses decreased $2.0 million, or 6%, to $29.0
million for First Quarter 2023 from $31.0 million for First Quarter 2022,
primarily driven by the reduction of expenses from a subsidiary that was sold in
second quarter 2022.

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Investments

We had total investments of $7.82 billion and $7.52 billion as of March 31, 2023
and December 31, 2022, respectively. Net unrealized losses on our fixed maturity
securities portfolio decreased by $100.2 million during Three Months 2023, from
$637.1 million as of December 31, 2022 to a net unrealized loss of $536.9
million as of March 31, 2023, primarily due to a decrease 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               March 31, 2023                           December 31, 2022
Aaa / Aa / A                                  $      3,737.4                 57.0  %       $  3,615.2                 57.5  %
Baa                                                  2,436.4                 37.1  %          2,295.4                 36.5  %
Ba                                                     299.8                  4.6  %            305.2                  4.9  %
B and lower                                             84.2                  1.3  %             67.9                  1.1  %
Total                                         $      6,557.8                100.0  %       $  6,283.7                100.0  %


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

                                                   Three Months Ended March 31,
                                                         2023                     2022
Fixed maturity securities                  $           78.6                     $ 62.3
Equity securities                                       3.9                        3.7
Commercial mortgage loans on real estate                4.1                        3.9
Short-term investments                                  2.7                        0.5
Other investments                                       3.0                       17.2
Cash and cash equivalents                              16.8                        2.3
Total investment income                               109.1                       89.9
Investment expenses                                    (3.9)                      (3.6)
Net investment income                      $          105.2                     $ 86.3



Net investment income increased $18.9 million, or 22%, to $105.2 million for
First Quarter 2023 from $86.3 million for First Quarter 2022, primarily driven
by higher yields on fixed maturity securities, short-term investments and cash
and cash equivalents, partially offset by a decrease in income from other
investments due to lower real estate joint venture sales.

Net realized losses on investments and fair value changes to equity securities
were $10.6 million for First Quarter 2023 compared to $62.4 million for First
Quarter 2022. First Quarter 2023 was primarily driven by normal course sales of
fixed maturity securities, changes in fair value of our remaining equity
positions that went public through SPAC mergers, and impairments of other
investments accounted for under the measurement alternative. First Quarter 2022
was primarily driven by $45.8 million of net unrealized losses from changes in
fair value on SPAC equity positions and $17.9 million of net unrealized losses
from preferred stocks due to an increase in interest rates, partially offset by
$10.0 million of unrealized gains from an equity security accounted for under
the measurement alternative in connection with a market observable event that
occurred in First Quarter 2022. The net realized losses were also driven by
$21.5 million in net realized losses on sales of fixed maturity securities that
was partially offset by $10.9 million in net realized gains on sales of equity
securities.

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

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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 2022 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, 2023, 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 $344.7 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. 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 2022 Annual Report.

Holding Company

As of March 31, 2023, we had approximately $382.7 million in holding company
liquidity, which was $157.7 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 losses 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 $469.5 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 of
liquid assets and excluding amounts used for or as a result of acquisitions or
received from dispositions, were $112.0 million and $549.5 million for Three
Months 2023 and Twelve Months 2022, respectively. 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 Three Months 2023, we paid common stock dividends of $37.0 million. We
paid dividends of $0.70 per common share on March 20, 2023 to stockholders of
record as of February 27, 2023. Any determination to pay future dividends 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.

We did not repurchase any shares of our outstanding common stock during Three
Months 2023. In May 2021, the Board authorized a share repurchase program for up
to $900.0 million of our outstanding common stock. As of March 31, 2023, $274.5
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.

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'
funds in order to generate investment income.

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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 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 -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 2022
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 public 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 March 31, 2023 and December 31, 2022:

                                                          March 31, 2023                                 December 31, 2022
                                                Principal
                                                  Amount             Carrying Value          Principal Amount           Carrying Value

4.20% Senior Notes due September 2023 $ 50.0 $

50.0 $ 225.0 $ 224.7
6.10% Senior Notes due February 2026

                175.0                    173.1                         -                        -
4.90% Senior Notes due March 2028                   300.0                    298.0                     300.0                    297.8
3.70% Senior Notes due February 2030                350.0                    347.7                     350.0                    347.6
2.65% Senior Notes due January 2032                 350.0                    346.7                     350.0                    346.7
6.75% Senior Notes due February 2034                275.0                    272.6                     275.0                    272.5
7.00% Fixed-to-Floating Rate Subordinated
Notes due March 2048                                400.0                    396.6                     400.0                    396.5
5.25% Subordinated Notes due January 2061           250.0                    244.1                     250.0                    244.1
Total Debt                                                         $       2,128.8                                    $       2,129.9


2026 Senior Notes: In February 2023, we issued senior notes with an aggregate
principal amount of $175.0 million, which bear interest at a rate of 6.1% per
year, mature in February 2026 and were issued at a 0.035% discount to the public
(the "2026 Senior Notes"). Interest on the 2026 Senior Notes is payable
semi-annually in arrears on February 27 and August 27 of each year, beginning on
August 27, 2023. Prior to January 27, 2026, we may redeem all or part of the
2026 Senior Notes at any time at a redemption price equal to 100% of the
outstanding principal amount of the 2026 Senior Notes to be redeemed, plus a
make-whole premium as described in the 2026 Senior Notes and accrued and unpaid
interest up to the redemption date. On or after that date, we may redeem all or
part of the 2026 Senior Notes at any time at a redemption price equal to 100% of
the outstanding principal amount of the 2026 Senior Notes to be redeemed, plus
accrued and unpaid interest up to the redemption date.

In anticipation of the issuance of the 2026 Senior Notes, we entered into a
derivative transaction to hedge the risk associated with changes in interest
rates up to the date the 2026 Senior Notes were issued. We determined that the
derivative

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qualified for cash flow hedge accounting and recognized a deferred gain of
$1.4 million upon settlement which was reported through other comprehensive
income. The deferred gain will be recognized as a reduction in interest expense
related to the 2026 Senior Notes on an effective yield basis.

In March 2023, we used the net proceeds from the sale of the 2026 Senior Notes
(and available cash on hand) to redeem $175.0 million of the $225.0 million then
outstanding aggregate principal amount of our 4.20% Senior Notes due September
2023 plus accrued and unpaid interest up to the redemption date. In connection
with the redemption, we recognized a net gain on extinguishment of debt of
$0.1 million. The net gain resulted from the recognition of a previously
deferred gain from the termination of a hedge of the interest rate risk
associated with the redeemed notes, partially offset by the immediate
recognition of the remaining deferred debt issuance costs relating to the
redeemed notes.

In the next five years, we have three debt maturities in September 2023,
February 2026 and March 2028 when the remaining 2023 Senior Notes, the 2026
Senior Notes and the 2028 Senior Notes 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 Three Months 2023 and no
loans were outstanding as of March 31, 2023.

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
program. Our commercial paper is rated AMB-1 by A.M. Best, P-2 by Moody's and
A-2 by S&P. This program is currently backed up by the Credit Facility, of which
$499.8 million out of the $500.0 million was available as of March 31, 2023, due
to $0.2 million of letters of credit outstanding.

We did not use the commercial paper program during Three Months 2023 and there
were no amounts relating to the commercial paper program outstanding as of March
31, 2023. Our subsidiaries do not maintain commercial paper or other borrowing
facilities.

Cash Flows

We monitor cash flows at the consolidated and entity levels. Cash flow forecasts
at the consolidated and entity 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 Three Months Ended March 31,
Net cash provided by (used in):                                            2023                     2022
Operating activities                                               $            259.6          $    (501.1)

Investing activities                                                           (229.4)               (13.3)

Financing activities                                                            (43.0)              (277.5)

Effect of exchange rate changes on cash and cash equivalents                      1.7                 (4.1)

Net change in cash                                                 $        

(11.1) $ (796.0)

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 generally 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 was $259.6 million for Three Months
2023 compared to net cash used in operating activities of $501.1 million for
Three Months 2022. The change in net operating cash flows was largely
attributable to

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our mobile business operations that resulted primarily from higher collections
of premiums and fees due to timing and a decrease in payments to vendors for the
acquisition of mobile devices used to meet insurance claims or generate profits
through sales to third parties.

Net cash used in investing activities was $229.4 million for Three Months 2023
compared to net cash used in investing activities of $13.3 million for Three
Months 2022. The increase in net cash used in investing activities was primarily
driven by the investment of net cash provided by operating activities and the
reinvestment of proceeds from sales and maturities of investments in higher
yielding fixed maturities during the period.

Net cash used in financing activities was $43.0 million for Three Months 2023
compared to net cash used in financing activities of $277.5 million for Three
Months 2022. The decrease in net cash used in financing activities was primarily
due to the absence of share repurchases during the quarter.

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

                                        For the Three Months Ended March 31,
                                                  2023                          2022
     Interest paid on debt    $             49.5                              $ 52.1
     Common stock dividends                 37.0                                37.4

     Total                    $             86.5                              $ 89.5


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 $2.7 million of letters of credit outstanding as of March 31, 2023
and December 31, 2022.