Q2 for Form 10-Q 2023

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2023

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission file number 001-31978

Assurant, Inc.

(Exact name of registrant as specified in its charter)

Delaware	39-1126612
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification No.)

260 Interstate North Circle SE

Atlanta, Georgia 30339

(770) 763-1000

(Address, including zip code, and telephone number, including area code, of Registrant's Principal Executive Offices)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, $0.01 Par Value	AIZ	New York Stock Exchange
5.25% Subordinated Notes due 2061	AIZN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such

files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant's common stock outstanding at July 28, 2023 was 53,022,687.

	ASSURANT, INC.
	QUARTERLY REPORT ON FORM 10-Q
	FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2023
	TABLE OF CONTENTS
Item	Page
Number	Number
	PART I
	FINANCIAL INFORMATION

1. Consolidated Financial Statements (unaudited) of Assurant, Inc.

	Consolidated Balance Sheets (unaudited) as of June 30, 2023 and December 31, 2022	2
	Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2023 and 2022	3
	Consolidated Statements of Comprehensive Income (unaudited) for the three and six months ended June 30, 2023 and 2022	4
	Consolidated Statements of Changes in Equity (unaudited) for the three and six months ended June 30, 2023 and 2022	5
	Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2023 and 2022	7
	Notes to Consolidated Financial Statements (unaudited)	9
2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	34
3.	Quantitative and Qualitative Disclosures About Market Risk	49
4.	Controls and Procedures	49
	PART II
	OTHER INFORMATION
1.	Legal Proceedings	50
1A.	Risk Factors	50
2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
5.	Other Information	50
6.	Exhibits	51
	Signatures	52

Assurant, Inc.

Consolidated Balance Sheets (unaudited)

		June 30, 2023			December 31, 2022
		(in millions, except number of
		shares and per share amounts)
Assets
Investments:
Fixed maturity securities available for sale, at fair value (amortized cost - $7,210.8 and $6,920.8 at June 30, 2023 and December 31,	$	6,617.8	$	6,283.7
2022, respectively)
Equity securities at fair value		259.6			281.3
Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $3.1 and $1.8 at June 30, 2023 and		302.7			295.6
December 31, 2022)
Short-term investments		279.7			155.5
Other investments		528.8			508.4
Total investments		7,988.6			7,524.5
Cash and cash equivalents		1,401.7			1,536.7
Premiums and accounts receivable (net of allowances for credit losses of $8.6 and $9.2 at June 30, 2023 and December 31, 2022,		2,342.3			2,406.4
respectively)
Reinsurance recoverables (net of allowances for credit losses of $4.8 and $5.4 at June 30, 2023 and December 31, 2022, respectively)		6,636.6			6,999.4
Accrued investment income		90.7			85.1
Deferred acquisition costs		9,818.5			9,677.1
Property and equipment, net		642.7			645.1
Goodwill		2,606.3			2,603.0
Value of business acquired		166.4			262.8
Other intangible assets, net		608.4			638.9
Other assets (net of allowances for credit losses of $1.2 and $1.7 at June 30, 2023 and December 31, 2022, respectively) (1)		802.5			738.3
Total assets	$	33,104.7		$	33,117.3
Liabilities

Future policy benefits and expenses	$	523.4	$	507.9
Unearned premiums		19,931.3			19,802.4
Claims and benefits payable		2,020.3			2,210.0
Commissions payable		626.7			647.5
Reinsurance balances payable		482.6			492.8
Funds held under reinsurance		376.2			366.6
Accounts payable and other liabilities (including allowances for credit losses of $10.5 and $10.3 at June 30, 2023 and December 31, 2022,		2,528.8			2,731.5
respectively, for the unsecured portion of the high deductible recoverables)
Debt		2,129.4			2,129.9
Total liabilities		28,618.7			28,888.6
Commitments and contingencies (Note 15)
Stockholders' equity
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 55,304,730 and 55,126,470 shares issued and 53,008,641 and		0.6			0.6
52,830,381 shares outstanding at June 30, 2023 and December 31, 2022, respectively
Additional paid-in capital		1,653.7			1,637.8
Retained earnings		3,877.2			3,699.3
Accumulated other comprehensive loss		(922.7)			(986.2)
Treasury stock, at cost; 2,296,089 shares at June 30, 2023 and December 31, 2022		(122.8)			(122.8)
Total equity		4,486.0			4,228.7
Total liabilities and equity	$	33,104.7		$	33,117.3

During second quarter 2023, Assurant, Inc. initiated plans to sell its Miami, Florida property. As of June 30, 2023, the related assets totaling $44.4 million met held-for-sale criteria and were reclassified from property and equipment, net, to other assets. Assurant, Inc. has ceased depreciation of these assets which are recorded at carrying value, which is less than the estimated fair value less estimated costs to sell.

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Consolidated Statements of Operations (unaudited)

Three Months Ended June 30,		Six Months Ended June 30,
2023	2022		2023	2022

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

Revenues
Net earned premiums	$	2,343.0	$	2,168.9	$	4,608.5	$	4,305.3
Fees and other income		295.7		325.2		578.4		647.6
Net investment income		112.9		92.0		218.1		178.3

Net realized losses on investments (including $3.1, $1.6, $5.6, and $2.1 of impairment- related losses for the three and six months ended June 30, 2023 and 2022, respectively) and fair value changes to equity securities

Total revenues

Benefits, losses and expenses

(20.0)	(76.4)	(30.6)	(138.8)
2,731.6		2,509.7		5,374.4		4,992.4

Policyholder benefits		632.5			600.0			1,278.1	1,090.0
Underwriting, selling, general and administrative expenses		1,867.6			1,811.7			3,690.8	3,602.3
Interest expense		27.2			27.2			54.2	54.1
Loss (gain) on extinguishment of debt		-			0.9			(0.1)	0.9
Total benefits, losses and expenses		2,527.3			2,439.8			5,023.0	4,747.3
Income before income tax expense		204.3			69.9			351.4	245.1
Income tax expense		48.0			17.7			81.5	43.9
Net income	$	156.3	$	52.2	$	269.9	$	201.2


Earnings Per Common Share
Basic	$	2.91	$	0.96	$	5.03	$	3.65
Diluted	$	2.90	$	0.95	$	5.01	$	3.61

Share Data
Weighted average common shares outstanding used in basic per common share		53,745,611			54,607,321			53,619,711	55,190,104
calculations
Plus: Dilutive securities		144,071			407,626			223,324	473,842
Weighted average common shares outstanding used in diluted per common share		53,889,682			55,014,947			53,843,035	55,663,946
calculations

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Assurant, Inc.

Consolidated Statements of Comprehensive Income (unaudited)

	Three Months Ended June 30,			Six Months Ended June 30,
	2023				2022			2023		2022
					(in millions)
Net income	$	156.3	$	52.2	$	269.9	$	201.2
Other comprehensive income (loss):
Change in unrealized losses on securities, net of taxes of $9.7, $77.5, $(11.1) and		(46.9)			(291.9)			32.3		(626.7)
$162.8 for the three and six months ended June 30, 2023 and 2022, respectively
Change in unrealized gains on derivative transactions, net of taxes of $(0.6), $0.2,
$(0.6) and $0.4 for the three and six months ended June 30, 2023 and 2022,		2.1			(0.7)			2.2		(1.3)
respectively
Change in foreign currency translation, net of taxes of $(4.4), $1.0, $(2.1) and		23.7			(41.9)			33.7		(40.6)
$(2.6) for the three and six months ended June 30, 2023 and 2022, respectively
Change in pension and postretirement unrecognized net periodic benefit cost, net
of taxes of $0.6, $0.6, $1.3 and $0.9 for the three and six months ended June 30,		(2.1)			(2.4)			(4.7)		(3.6)
2023 and 2022, respectively
Total other comprehensive income (loss)		(23.2)			(336.9)			63.5		(672.2)
Total comprehensive income (loss)	$	133.1		$	(284.7)		$	333.4	$	(471.0)

See the accompanying Notes to Consolidated Financial Statements (unaudited)

Attachments

Disclaimer

Assurant Inc. published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 22:06:50 UTC.