8-K
ASSURANT, INC. (AIZ)
8-K
2021-04-15
For: 2021-04-15
View Original
Added on
April 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 15, 2021
Assurant, Inc.
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 001-31978 | 39-1126612 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) |
28 Liberty Street, 41st Floor
New York, New York 10005
(212) 859-7000
(Address, including zip code, and telephone number, including area code, of Registrant’s Principal Executive Offices)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading<br>Symbol(s) | Name of Each Exchange<br>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 is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
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. ☐
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On April 15, 2021, Assurant, Inc. (the “Company”) announced that it will be revising its financial supplement beginning with first quarter 2021 to reflect the Global Preneed business and related legal entities as discontinued operations and to introduce Adjusted EBITDA. The Company revised its financial supplement as of December 31, 2020 to provide investors with an opportunity to review the updated presentation prior to the publication of its first quarter 2021 results.
The text of the news release and the revised financial supplement, attached hereto as Exhibit 99.1 and 99.2, respectively, is incorporated by reference into this Item 2.02. The news release and the revised financial supplement are being furnished pursuant to this Item 2.02 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section 18, and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in any such filing.
| Item 9.01. | Financial Statements and Exhibits. |
|---|
(d) Exhibits
| Exhibit No. | Exhibit |
|---|---|
| 99.1 | News Release, dated April 15, 2021. |
| 99.2 | Revised Financial Supplement as of April 15, 2021. |
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL. |
-3-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ASSURANT, INC. | ||
|---|---|---|
| Date: April 15, 2021 | By: | /s/ Mariana Wisk |
| Name: Mariana Wisk | ||
| Title: Vice President and Corporate Secretary |
-4-
EX-99.1
Exhibit 99.1
Assurant Introduces Revised Financial Supplement
To Reflect Focus on Global Lifestyle and Global Housing Businesses
NEW YORK, Apr. 15, 2021 – Assurant, Inc. (NYSE: AIZ), a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases, today announced it has revised its financial supplement to reflect the company’s focus on its Global Lifestyle and Global Housing businesses following the announcement it had signed an agreement to sell its Global Preneed business and related legal entities and assets.
Beginning in first quarter 2021, the company’s financial statements and financial supplement will present consolidated results reflecting its Global Preneed business and related legal entities as discontinued operations. In addition, the financial supplement will include a new performance metric for the company, Adjusted EBITDA, that will complement net operating income given the ongoing shift to more service-oriented and fee-based businesses.
To provide investors with an opportunity to review the updated presentation prior to the publication of Assurant’s first quarter 2021 results on Tuesday, May 4, the financial supplement as of Dec. 31, 2020 has been revised to reflect these changes. The revised financial supplement is available on Assurant’s Investor Relations website: https://ir.assurant.com/investor/default.aspx.
About Assurant
Assurant, Inc. (NYSE: AIZ) is a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases. Anticipating the evolving needs of consumers, Assurant partners with the world’s leading brands to develop innovative products and services and to deliver an enhanced customer experience. A Fortune 500 company with a presence in 21 countries, Assurant offers mobile device solutions; extended service contracts; vehicle protection services; pre-funded funeral insurance; renters insurance; lender-placed insurance products; and other specialty products. The Assurant Foundation strengthens communities by supporting charitable partners that help protect where people live and can thrive, connect with local resources, inspire inclusion and prepare leaders of the future.
Learn more at assurant.com or on Twitter @AssurantNews.
Media Contact:
Linda Recupero
Senior Vice President, Enterprise Communication
201.519.9773
linda.recupero@assurant.com
Investor Relations Contacts:
Suzanne Shepherd
Senior Vice President, Investor Relations
201.788.4324
suzanne.shepherd@assurant.com
Sean Moshier
Assistant Vice President, Investor Relations
914.204.2253
sean.moshier@assurant.com
EX-99.2
Exhibit 99.2
Assurant, Inc. (AIZ)
REVISED Financial Supplement as of December 31, 2020
Note: In March 2021, Assurant entered into a definitive agreement to sell its Global Preneed business and its related legal entities and assets. The net income of the Global Preneed segment and related legal entities will be reported as discontinued operations beginning with first quarter 2021. This revised financial supplement as of December 31, 2020 reflects that change. This revised financial supplement also includes Adjusted EBITDA for the Company, segments and certain lines of business. The addition of Adjusted EBITDA as a non-GAAP measure reflects the Company’s ongoing shift to more service-oriented, fee-based businesses.
Refer to page 9 for the full details of discontinued operations. The new and revised sections are indicated by yellow highlight throughout. Information not related to the two changes indicated above has been omitted from this revised financial supplement.
ASSURANT, INC.
FINANCIAL SUPPLEMENT
(UNAUDITED)
As ofDecember 31, 2020
INDEX TO FINANCIAL SUPPLEMENT
| Page: | ||
|---|---|---|
| SUMMARY FINANCIAL HIGHLIGHTS | 1 | |
| RECONCILIATION OF NET OPERATING INCOME TO NET INCOME FROM CONTINUING OPERATIONS | 2 | |
| RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME FROM CONTINUING OPERATIONS | 3 | |
| CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS AND SELECTED DATA | 4 | |
| SEGMENT CONDENSED BALANCE SHEETS | 8 | |
| SUMMARY OF DISCONTINUED OPERATIONS | 9 | |
| INVESTMENTS | 10 | |
| INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS | 12 | |
| RATINGS SUMMARY | 13 | |
| RECONCILIATION OF ADJUSTED FINANCIAL DATA | 14 | |
| REGULATION G – NON GAAP FINANCIAL MEASURES | 18 | |
| CONTACT INFORMATION | ||
| --- | --- | --- |
| Corporate Headquarters Address: | Investor Inquiries: | |
| 28 Liberty Street, 41st Floor | Suzanne Shepherd | Sean Moshier |
| New York, NY 10005 | Senior Vice President | Assistant Vice President |
| 212-859-7000 | Investor Relations | Investor Relations |
| 212-859-7062 | 212-859-5831 | |
| Website Address: | suzanne.shepherd@assurant.com | sean.moshier@assurant.com |
| www.assurant.com |
Assurant, Inc. (NYSE: AIZ) is a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases. Anticipating the evolving needs of consumers, Assurant partners with the world’s leading brands to develop innovative products and services and to deliver an enhanced customer experience. A Fortune 500 company with a presence in 21 countries, Assurant offers mobile device solutions; extended service contracts; vehicle protection services; pre-funded funeral insurance; renters insurance; lender-placed insurance products; and other specialty products. The Assurant Foundation strengthens communities by supporting charitable partners that help protect where people live and can thrive, connect with local resources, inspire inclusion and prepare leaders of the future. Learn more at assurant.com or on Twitter @AssurantNews.
Assurant, Inc.
Summary Financial Highlights
(Unaudited)
Note: All highlighted amounts (excluding (i) Adjusted EBITDA and(ii) Adjusted EBITDA, excluding reportable catastrophes) have been reconciled on page 14 to the amounts originally reported in the financial supplement dated December 31, 2020 and published on February 9, 2021. ****
| 2020 | Twelve Months | 12M20-12M19<br>% Change | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions, except per share amounts and closing stock price) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | ||||||||||
| KEY FINANCIAL METRICS | ||||||||||||||||
| Segment net earned premiums, fees and other<br>income^(1)^ | $ | 2,313.7 | $ | 2,296.3 | $ | 2,257.6 | $ | 2,447.3 | $ | 9,314.9 | $ | 9,127.9 | 2.0 | % | ||
| Total segment revenues^(1)^ | $ | 2,382.4 | $ | 2,357.4 | $ | 2,318.2 | $ | 2,524.0 | $ | 9,582.0 | $ | 9,473.9 | 1.1 | % | ||
| Net income (loss) attributable to common stockholders | $ | 134.5 | $ | (34.9 | ) | $ | 173.5 | $ | 150.0 | $ | 423.1 | $ | 363.9 | 16.3 | % | |
| Net income from continuing operations, as adjusted | $ | 119.1 | $ | 88.0 | $ | 164.7 | $ | 148.6 | $ | 520.4 | $ | 306.4 | 69.8 | % | ||
| Net operating income, as adjusted^(2)^ | $ | 96.6 | $ | 69.4 | $ | 153.7 | $ | 148.5 | $ | 468.2 | $ | 472.3 | (0.9 | )% | ||
| Net operating income, as adjusted, excluding reportable catastrophes^(2)(3)^ | $ | 123.9 | $ | 156.4 | $ | 163.7 | $ | 161.4 | $ | 605.4 | $ | 513.3 | 17.9 | % | ||
| Adjusted EBITDA^(4)^ | $ | 192.8 | $ | 141.6 | $ | 257.6 | $ | 247.7 | $ | 839.7 | $ | 834.8 | 0.6 | % | ||
| Adjusted EBITDA, excluding reportable<br>catastrophes^(2)(3)^ | $ | 227.5 | $ | 251.7 | $ | 270.2 | $ | 264.0 | $ | 1,013.4 | $ | 886.6 | 14.3 | % | ||
| Per share^(5)^: | ||||||||||||||||
| Net income (loss) attributable to common stockholders, per diluted share | $ | 2.23 | $ | (0.58 | ) | $ | 2.81 | $ | 2.43 | $ | 6.99 | $ | 5.84 | 19.7 | % | |
| Net income from continuing operations, as adjusted, per diluted share | $ | 1.91 | $ | 1.38 | $ | 2.59 | $ | 2.32 | $ | 8.22 | $ | 4.56 | 80.3 | % | ||
| Net operating income, as adjusted, per diluted share^(2)^ | $ | 1.62 | $ | 1.15 | $ | 2.50 | $ | 2.41 | $ | 7.71 | $ | 7.58 | 1.7 | % | ||
| Net operating income, as adjusted, excluding reportable catastrophes, per<br>diluted share^(2)(3)^ | $ | 2.06 | $ | 2.59 | $ | 2.66 | $ | 2.61 | $ | 9.88 | $ | 8.24 | 19.9 | % | ||
| SHARE DATA: | ||||||||||||||||
| Weighted average basic common shares outstanding | 59,310,101 | 60,190,103 | 60,363,577 | 60,602,911 | 60,114,670 | 61,942,969 | (3.0 | )% | ||||||||
| Incremental common shares from: | ||||||||||||||||
| Performance share units and employee stock purchase plan^(6)^ | 387,292 | 235,619 | 206,362 | 327,840 | 363,343 | 370,499 | (1.9 | )% | ||||||||
| Mandatory convertible preferred<br>stock^(7)^ | 2,701,925 | — | 2,777,250 | 2,696,175 | 2,701,925 | — | N/A | |||||||||
| Weighted average diluted common shares outstanding | 62,399,318 | 60,425,722 | 63,347,189 | 63,626,926 | 63,179,938 | 62,313,468 | 1.4 | % | ||||||||
| Anti-dilutive incremental common shares from mandatory convertible preferred stock^(7)^ | — | 2,699,913 | — | — | — | 2,695,025 | (100.0 | )% | ||||||||
| (1) | Includes net earned premiums, fees and other income and total revenues of the Global Lifestyle and Global<br>Housing operating segments. | |||||||||||||||
| --- | --- | |||||||||||||||
| (2) | Refer to the Footnotes in Regulation G - Non GAAP Financial Measures for reconciliations of non-GAAP measures<br>to the most comparable GAAP measure. | |||||||||||||||
| --- | --- | |||||||||||||||
| (3) | Represents reportable catastrophe losses net of reinsurance and client profit sharing adjustments and including<br>reinstatement and other premiums. Reportable catastrophes include individual Insurance Services Office (“ISO”) events greater than $5 million (pre-tax). | |||||||||||||||
| --- | --- | |||||||||||||||
| (4) | Refer to page 3 for the reconciliation of Adjusted EBITDA to its most comparable GAAP<br>measure, net income from continuing operations. | |||||||||||||||
| --- | --- | |||||||||||||||
| (5) | Refer to “Share Data” below for additional information on the shares used in the per share<br>calculations. | |||||||||||||||
| --- | --- | |||||||||||||||
| (6) | Upon adjusting 3Q 2020 for discontinued operations, the incremental common shares from<br>performance share units and the employee stock purchase plan became dilutive. As reported in the financial supplement dated December 31, 2020 and published on February 9, 2021, these potentially dilutive securities were anti-dilutive and<br>therefore, excluded from the weighted average diluted common shares outstanding. | |||||||||||||||
| --- | --- | |||||||||||||||
| (7) | Dilution for the mandatory convertible preferred stock is calculated based on the assumed conversion of the<br>outstanding mandatory convertible preferred stock, using the average closing stock price for the period the shares were outstanding. Net income attributable to common stockholders per diluted share excludes the effect of shares of potentially<br>dilutive securities which were anti-dilutive for the period. Accordingly, the numerator has not been increased by the amount of the preferred stock dividends in the periods in which the incremental common shares from mandatory convertible preferred<br>stock were anti-dilutive. | |||||||||||||||
| --- | --- |
Assurant, Inc.
Reconciliation of Net Operating Income, as adjusted, to Net Income from Continuing Operations^(1)^
(Unaudited)
Note: Net operating income, as adjusted, has been reconciled in Footnote (1) in Regulation G - Non GAAP Financial Measures to the amounts originally reported in the financialsupplement dated December 31, 2020 and published on February 9, 2021. Segment net operating income, as adjusted; segment net earned premiums, fees and other income; net income from continuing operations, as adjusted; and segment netoperating margin have been reconciled on page 14. ****
| 2020 | Twelve Months | 12M20-12M19<br>% Change | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions, net of tax) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||
| Net income from continuing operations, as adjusted | $ | 119.1 | $ | 88.0 | $ | 164.7 | $ | 148.6 | $ | 520.4 | $ | 306.4 | 69.8 | % | |||||||
| Adjustments, net of tax: | |||||||||||||||||||||
| Net realized (gains) losses on investments | (22.4 | ) | (13.5 | ) | (22.7 | ) | 67.2 | 8.6 | (47.2 | ) | 118.2 | % | |||||||||
| COVID-19 direct and incremental expenses | 4.2 | (0.3 | ) | 15.0 | 2.3 | 21.2 | — | N/A | |||||||||||||
| CARES Act tax benefit | — | — | (5.1 | ) | (79.3 | ) | (84.4 | ) | — | N/A | |||||||||||
| Assurant Health runoff operations | (12.2 | ) | (0.4 | ) | (0.2 | ) | 0.1 | (12.7 | ) | (22.1 | ) | 42.5 | % | ||||||||
| Net charge related to Iké | — | — | 3.5 | 5.8 | 9.3 | 163.9 | (94.3 | )% | |||||||||||||
| Loss on extinguishment of debt and other related costs | — | — | — | — | — | 29.6 | (100.0 | )% | |||||||||||||
| Other adjustments | 12.4 | — | 3.4 | 9.6 | 25.4 | 64.6 | (60.7 | )% | |||||||||||||
| Net loss (income) attributable to non-controlling interests | 0.2 | 0.3 | (0.3 | ) | (1.1 | ) | (0.9 | ) | (4.2 | ) | 78.6 | % | |||||||||
| Preferred stock dividends | (4.7 | ) | (4.7 | ) | (4.6 | ) | (4.7 | ) | (18.7 | ) | (18.7 | ) | — | % | |||||||
| Net operating income, asadjusted^(1)^ | $ | 96.6 | $ | 69.4 | $ | 153.7 | $ | 148.5 | $ | 468.2 | $ | 472.3 | (0.9 | )% | |||||||
| Global Lifestyle | $ | 87.9 | $ | 106.6 | $ | 121.8 | $ | 120.9 | $ | 437.2 | $ | 409.3 | 6.8 | % | |||||||
| Global Housing | 61.1 | 13.1 | 85.4 | 74.2 | 233.8 | 258.7 | (9.6 | )% | |||||||||||||
| Corporate and Other, as adjusted^(1)^ | (26.6 | ) | (25.7 | ) | (28.8 | ) | (21.8 | ) | (102.9 | ) | (94.1 | ) | N/A | ||||||||
| Interest expense | (21.1 | ) | (19.9 | ) | (20.1 | ) | (20.1 | ) | (81.2 | ) | (82.9 | ) | N/A | ||||||||
| Preferred stock dividends | (4.7 | ) | (4.7 | ) | (4.6 | ) | (4.7 | ) | (18.7 | ) | (18.7 | ) | — | % | |||||||
| Net operating income, asadjusted^(1)^ | $ | 96.6 | $ | 69.4 | $ | 153.7 | $ | 148.5 | $ | 468.2 | $ | 472.3 | (0.9 | )% | |||||||
| Segment net earned premiums, fees and otherincome^(2)^ | |||||||||||||||||||||
| Global Lifestyle | $ | 1,817.0 | $ | 1,805.0 | $ | 1,768.7 | $ | 1,946.9 | $ | 7,337.6 | $ | 7,094.2 | 3.4 | % | |||||||
| Global Housing | 496.7 | 491.3 | 488.9 | 500.4 | 1,977.3 | 2,033.7 | (2.8 | )% | |||||||||||||
| Total | $ | 2,313.7 | $ | 2,296.3 | $ | 2,257.6 | $ | 2,447.3 | $ | 9,314.9 | $ | 9,127.9 | 2.0 | % | |||||||
| Segment net operatingincome^(3)^ | $ | 149.0 | $ | 119.7 | $ | 207.2 | $ | 195.1 | $ | 671.0 | $ | 668.0 | 0.4 | % | |||||||
| Segment net operatingmargin^(4)^ | 3.8 | % | 4.6 | % | 5.4 | % | 4.9 | % | 4.7 | % | 4.5 | % | 20 bps | ||||||||
| (1) | Refer to the Footnotes in Regulation G - Non GAAP Financial Measures for reconciliations of non-GAAP measures<br>to the most comparable GAAP measure. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Includes net earned premiums, fees and other income of the Global Lifestyle and Global Housing operating<br>segments. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (3) | Includes net operating income of the Global Lifestyle and Global Housing operating segments. Segment net<br>operating income is equal to GAAP segment net income. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (4) | Equals segment net operating income divided by segment net earned premiums, fees and other income.<br> | ||||||||||||||||||||
| --- | --- |
Assurant, Inc.
Reconciliation of Adjusted EBITDA to Net Income from Continuing Operations^(1)^
(Unaudited)
| 2020 | Twelve Months | 12M20-12M19<br>% Change | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||
| GAAP net income (loss) attributable to common stockholders | $ | 134.5 | $ | (34.9 | ) | $ | 173.5 | $ | 150.0 | $ | 423.1 | $ | 363.9 | 16.3 | % | ||||||
| Less: Net (income) loss from discontinued operations | (19.9 | ) | 118.5 | (13.7 | ) | (7.2 | ) | 77.7 | (80.4 | ) | NA | ||||||||||
| Add: Net (loss) income attributable to non-controlling interests | (0.2 | ) | (0.3 | ) | 0.3 | 1.1 | 0.9 | 4.2 | NA | ||||||||||||
| Add: Preferred stock dividends | 4.7 | 4.7 | 4.6 | 4.7 | 18.7 | 18.7 | NA | ||||||||||||||
| GAAP net income from continuing operations | 119.1 | 88.0 | 164.7 | 148.6 | 520.4 | 306.4 | 69.8 | % | |||||||||||||
| Less: | |||||||||||||||||||||
| Interest expense | 26.8 | 25.5 | 26.7 | 25.5 | 104.5 | 110.6 | (5.5 | )% | |||||||||||||
| Provision (benefit) for income taxes | 39.8 | 24.5 | 44.6 | (48.5 | ) | 60.4 | 148.3 | (59.3 | )% | ||||||||||||
| Depreciation expense | 15.5 | 13.9 | 14.3 | 12.4 | 56.1 | 51.8 | 8.3 | % | |||||||||||||
| Amortization of purchased intangible assets | 16.7 | 12.5 | 12.3 | 11.2 | 52.7 | 40.3 | 30.8 | % | |||||||||||||
| Adjustments, Pre-tax: | |||||||||||||||||||||
| Net realized (gains) losses on investments | (29.6 | ) | (17.1 | ) | (28.9 | ) | 85.0 | 9.4 | (57.0 | ) | (116.5 | )% | |||||||||
| COVID-19 direct and incremental expenses | 5.3 | (0.6 | ) | 17.5 | 3.0 | 25.2 | — | NA | |||||||||||||
| Assurant Health runoff operations | (15.5 | ) | (0.5 | ) | (0.2 | ) | 0.1 | (16.1 | ) | (28.0 | ) | (42.5 | )% | ||||||||
| Net charge related to Iké | — | — | 4.5 | 1.4 | 5.9 | 163.0 | (96.4 | )% | |||||||||||||
| Loss on extinguishment of debt and other related costs | — | — | — | — | — | 31.8 | (100.0 | )% | |||||||||||||
| Loss (income) attributable to non-controlling interests | 0.3 | 0.2 | (0.3 | ) | (1.4 | ) | (1.2 | ) | (5.1 | ) | (76.5 | )% | |||||||||
| Other adjustments^(1)^ | 14.4 | (4.8 | ) | 2.4 | 10.4 | 22.4 | 72.7 | (69.2 | )% | ||||||||||||
| Adjusted EBITDA^(2)^ | $ | 192.8 | $ | 141.6 | $ | 257.6 | $ | 247.7 | $ | 839.7 | $ | 834.8 | 0.6 | % | |||||||
| Segment Adjusted EBITDA | |||||||||||||||||||||
| Global<br>Lifestyle^(3)^ | $ | 137.2 | $ | 150.6 | $ | 175.4 | $ | 173.8 | $ | 637.0 | $ | 586.6 | 8.6 | % | |||||||
| Global Housing^(3)^ | 85.9 | 24.0 | 116.0 | 101.2 | 327.1 | 355.7 | (8.0 | )% | |||||||||||||
| Corporate and<br>Other^(3)^ | (30.3 | ) | (33.0 | ) | (33.8 | ) | (27.3 | ) | (124.4 | ) | (107.5 | ) | 15.7 | % | |||||||
| Total | $ | 192.8 | $ | 141.6 | $ | 257.6 | $ | 247.7 | $ | 839.7 | $ | 834.8 | 0.6 | % | |||||||
| (1) | Refer to Footnote (4) in the Regulation G - Non GAAP Financial Measures for detail of what is included in<br>other adjustments. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Below is a bridge from net operating income to Adjusted EBITDA (both including and excluding reportable<br>catastrophes). Certain adjustments below are different from similarly captioned items above because of non-operating impacts that are included in GAAP net income from continuing operations and excluded from net operating income and Adjusted EBITDA.<br>The reconciliations of these non-GAAP financial measures can be found above or in the Footnotes in Regulation G - Non GAAP Financial Measures. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| Twelve Months | |||||||||||||||||||||
| --- | --- | --- | --- | --- | |||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||
| Net operating income to Adjusted EBITDA bridge: | |||||||||||||||||||||
| Net operating income | $ | 468.2 | $ | 472.3 | |||||||||||||||||
| Provision for income taxes | 145.3 | 150.4 | |||||||||||||||||||
| Interest expense | 102.9 | 105.0 | |||||||||||||||||||
| Depreciation expense | 51.9 | 48.1 | |||||||||||||||||||
| Amortization of purchased intangible assets | 52.7 | 40.3 | |||||||||||||||||||
| Preferred stock dividends | 18.7 | 18.7 | |||||||||||||||||||
| Adjusted EBITDA | $ | 839.7 | $ | 834.8 | |||||||||||||||||
| Twelve Months | |||||||||||||||||||||
| --- | --- | --- | --- | --- | |||||||||||||||||
| 2020 | 2019 | ||||||||||||||||||||
| Net operating income, excluding reportable catastrophes to Adjusted EBITDA, excludingreportable catastrophes bridge: | |||||||||||||||||||||
| Net operating income, excluding reportable catastrophes | $ | 605.4 | $ | 513.3 | |||||||||||||||||
| Provision for income taxes | 181.8 | 161.2 | |||||||||||||||||||
| Interest expense | 102.9 | 105.0 | |||||||||||||||||||
| Depreciation expense | 51.9 | 48.1 | |||||||||||||||||||
| Amortization of purchased intangible assets | 52.7 | 40.3 | |||||||||||||||||||
| Preferred stock dividends | 18.7 | 18.7 | |||||||||||||||||||
| Adjusted EBITDA, excluding reportable catastrophes | $ | 1,013.4 | $ | 886.6 | |||||||||||||||||
| (3) | Global Lifestyle Adjusted EBITDA, Global Housing Adjusted EBITDA and Corporate and Other Adjusted EBITDA are<br>reconciled to its most comparable GAAP measure on pages 5, 6 and 7, respectively. | ||||||||||||||||||||
| --- | --- |
Assurant, Inc.
Consolidated Condensed Statements of Operations
(Unaudited)
Note: Reflects adjustments for the impact of discontinued operations. Refer to page 15 for a reconciliation to the amounts originally reported in the financial supplement datedDecember 31, 2020 and published on February 9, 2021. ****
| 2020 | Twelve Months | 12M20-12M19<br>% Change | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions, except per share data) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||
| Revenues: | |||||||||||||||||||||
| Net earned premiums | $ | 2,102.2 | $ | 2,086.8 | $ | 2,021.3 | $ | 2,065.5 | $ | 8,275.8 | $ | 7,958.8 | 4.0 | % | |||||||
| Fees and other income | 212.8 | 209.3 | 236.3 | 381.8 | 1,040.2 | 1,171.5 | (11.2 | )% | |||||||||||||
| Total net earned premiums, fees and other income | 2,315.0 | 2,296.1 | 2,257.6 | 2,447.3 | 9,316.0 | 9,130.3 | 2.0 | % | |||||||||||||
| Net investment income | 73.3 | 63.3 | 65.4 | 83.6 | 285.6 | 383.2 | (25.5 | )% | |||||||||||||
| Net realized gains (losses) on investments | 29.7 | 17.2 | 28.9 | (84.0 | ) | (8.2 | ) | 57.0 | (114.4 | )% | |||||||||||
| Amortization of deferred gains on disposal of businesses | 0.1 | 0.1 | 0.1 | 1.8 | 2.1 | (1.4 | ) | 250.0 | % | ||||||||||||
| Total revenues | 2,418.1 | 2,376.7 | 2,352.0 | 2,448.7 | 9,595.5 | 9,569.1 | 0.3 | % | |||||||||||||
| Benefits, losses and expenses: | |||||||||||||||||||||
| Policyholder benefits | 567.6 | 638.5 | 523.6 | 535.2 | 2,264.9 | 2,385.7 | (5.1 | )% | |||||||||||||
| Selling, underwriting, general and administrative expenses | 1,664.8 | 1,600.2 | 1,587.9 | 1,786.5 | 6,639.4 | 6,423.7 | 3.4 | % | |||||||||||||
| Iké net losses | — | — | 4.5 | 1.4 | 5.9 | 163.0 | (96.4 | )% | |||||||||||||
| Interest expense | 26.8 | 25.5 | 26.7 | 25.5 | 104.5 | 110.6 | (5.5 | )% | |||||||||||||
| Loss on extinguishment of debt | — | — | — | — | — | 31.4 | (100.0 | )% | |||||||||||||
| Total benefits, losses and expenses | 2,259.2 | 2,264.2 | 2,142.7 | 2,348.6 | 9,014.7 | 9,114.4 | (1.1 | )% | |||||||||||||
| Income from continuing operations before provision (benefit) for income taxes | 158.9 | 112.5 | 209.3 | 100.1 | 580.8 | 454.7 | 27.7 | % | |||||||||||||
| Provision (benefit) for income taxes | 39.8 | 24.5 | 44.6 | (48.5 | ) | 60.4 | 148.3 | (59.3 | )% | ||||||||||||
| Net income from continuing operations | 119.1 | 88.0 | 164.7 | 148.6 | 520.4 | 306.4 | 69.8 | % | |||||||||||||
| Net income (loss) from discontinued operations | 19.9 | (118.5 | ) | 13.7 | 7.2 | (77.7 | ) | 80.4 | (196.6 | )% | |||||||||||
| Net income (loss) | 139.0 | (30.5 | ) | 178.4 | 155.8 | 442.7 | 386.8 | 14.5 | % | ||||||||||||
| Less: Net loss (income) attributable to non-controlling interests | 0.2 | 0.3 | (0.3 | ) | (1.1 | ) | (0.9 | ) | (4.2 | ) | 78.6 | % | |||||||||
| Net income (loss) attributable to stockholders | 139.2 | (30.2 | ) | 178.1 | 154.7 | 441.8 | 382.6 | 15.5 | % | ||||||||||||
| Less: Preferred stock dividends | (4.7 | ) | (4.7 | ) | (4.6 | ) | (4.7 | ) | (18.7 | ) | (18.7 | ) | — | % | |||||||
| Net income (loss) attributable to common stockholders | $ | 134.5 | $ | (34.9 | ) | $ | 173.5 | $ | 150.0 | $ | 423.1 | $ | 363.9 | 16.3 | % | ||||||
| Pre-tax income from continuing operations<br>margin^(1)^ | 6.9 | % | (0.2 | )% | 9.8 | % | 4.4 | % | 6.2 | % | 5.9 | % | 30 | bps | |||||||
| Net income from continuing operations<br>margin^(2)^ | 5.1 | % | 3.8 | % | 7.3 | % | 6.1 | % | 5.6 | % | 3.4 | % | 220 | bps | |||||||
| Effective tax rate for net income from continuing operations | 25.0 | % | 21.8 | % | 21.3 | % | (48.5 | )% | 10.4 | % | 32.6 | % | (2,220 | ) bps | |||||||
| Investment yield^(3)^ | 2.84 | % | 2.54 | % | 2.76 | % | 3.56 | % | 2.91 | % | 4.15 | % | (124 | ) bps | |||||||
| Real estate joint venture partnerships income from sales and depreciation expense, pre-tax^(3)^ | $ | (0.9 | ) | $ | (1.6 | ) | $ | (1.2 | ) | $ | (1.9 | ) | $ | (5.6 | ) | $ | 10.4 | (153.8 | )% | ||
| (1) | Equals income from continuing operations before provision (benefit) for income taxes divided by total net<br>earned premiums, fees and other income. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Equals net income from continuing operations divided by total net earned premiums, fees and other income.<br> | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (3) | Excludes investment income attributable to non-controlling interests. | ||||||||||||||||||||
| --- | --- |
Global Lifestyle
Condensed Statements of Operations and Selected Data ****
(Unaudited) ****
| 2020 | Twelve Months | 12M20-12M19 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | % Change | ||||||||
| Global Lifestyle Adjusted EBITDA Reconciliation | |||||||||||||||
| Segment net operatingincome^(1)^ | $ | 87.9 | $ | 106.6 | $ | 121.8 | $ | 120.9 | $ | 437.2 | $ | 409.3 | 6.8 | % | |
| Less: | |||||||||||||||
| Provision for income taxes | 26.1 | 26.3 | 36.5 | 38.2 | 127.1 | 126.2 | 0.7 | % | |||||||
| Depreciation expense | 8.9 | 7.5 | 7.2 | 5.9 | 29.5 | 22.3 | 32.3 | % | |||||||
| Amortization of purchased intangible assets | 14.3 | 10.2 | 9.9 | 8.8 | 43.2 | 28.8 | 50.0 | % | |||||||
| Global Lifestyle Adjusted EBITDA | $ | 137.2 | $ | 150.6 | $ | 175.4 | $ | 173.8 | $ | 637.0 | $ | 586.6 | **** | 8.6 | % |
| Adjusted EBITDA^(2)^: | |||||||||||||||
| Connected Living | $ | 68.5 | $ | 91.7 | $ | 114.5 | $ | 106.2 | $ | 380.9 | $ | 335.3 | 13.6 | % | |
| Global Automotive | 59.0 | 57.3 | 58.7 | 58.1 | 233.1 | 214.3 | 8.8 | % | |||||||
| Global Financial Services and Other | 9.7 | 1.6 | 2.2 | 9.5 | 23.0 | 37.0 | (37.8 | )% | |||||||
| Total | $ | 137.2 | $ | 150.6 | $ | 175.4 | $ | 173.8 | $ | 637.0 | $ | 586.6 | 8.6 | % | |
| (1) | Segment net operating income is equal to GAAP segment net income. | ||||||||||||||
| --- | --- | ||||||||||||||
| (2) | Refer to the Footnotes in Regulation G - Non GAAP Financial Measures for reconciliations of non-GAAP measures<br>to the most comparable GAAP measure. | ||||||||||||||
| --- | --- |
Global Housing ****
Condensed Statements of Operations and Selected Data ****
(Unaudited) ****
| 2020 | Twelve Months | 12M20-12M19<br>% Change | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||
| Global Housing Adjusted EBITDA Reconciliation | |||||||||||||||
| Segment net operating income^(1)^ | $ | 61.1 | $ | 13.1 | $ | 85.4 | $ | 74.2 | $ | 233.8 | $ | 258.7 | (9.6 | )% | |
| Less: | |||||||||||||||
| Provision for income taxes | 16.9 | 2.9 | 22.2 | 19.3 | 61.3 | 67.6 | (9.3 | )% | |||||||
| Depreciation expense | 5.5 | 5.7 | 6.0 | 5.3 | 22.5 | 17.9 | 25.7 | % | |||||||
| Amortization of purchased intangible assets | 2.4 | 2.3 | 2.4 | 2.4 | 9.5 | 11.5 | (17.4 | )% | |||||||
| Global Housing Adjusted EBITDA | **** | 85.9 | **** | 24.0 | **** | 116.0 | **** | 101.2 | **** | 327.1 | **** | 355.7 | **** | (8.0 | )% |
| Reportable catastrophes^(2)^ | 34.7 | 110.1 | 12.8 | 16.1 | 173.7 | 51.9 | 234.7 | % | |||||||
| Global Housing Adjusted EBITDA, excluding reportable catastrophes | $ | 120.6 | $ | 134.1 | $ | 128.8 | $ | 117.3 | $ | 500.8 | $ | 407.6 | **** | 22.9 | % |
| (1) | Segment net operating income is equal to GAAP segment net income. | ||||||||||||||
| --- | --- | ||||||||||||||
| (2) | Represents reportable catastrophe losses net of reinsurance and client profit sharing adjustments and including<br>reinstatement and other premiums. Reportable catastrophes include ISO events greater than $5 million (pre-tax). | ||||||||||||||
| --- | --- |
Total Corporate and Other
Condensed Statements of Operations and Selected Data
(Unaudited)
Note: Refer to page 16 for a reconciliation to the amounts originally reported in the financial supplement dated December 31, 2020 and published on February 9,2021. ****
| 2020 | Twelve Months | 12M20-12M19<br>% Change | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||
| Revenues: | |||||||||||||||||||||
| Net earned premiums | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | N/A | ||||||||
| Fees and other income | 1.3 | (0.2 | ) | — | — | 1.1 | 2.4 | (54.2 | )% | ||||||||||||
| Net investment income | 4.6 | 2.2 | 4.8 | 6.9 | 18.5 | 37.2 | (50.3 | )% | |||||||||||||
| Net realized gains (losses) on investments | 29.7 | 17.2 | 28.9 | (84.0 | ) | (8.2 | ) | 57.0 | (114.4 | )% | |||||||||||
| Amortization of deferred gains on disposal of businesses | 0.1 | 0.1 | 0.1 | 1.8 | 2.1 | (1.4 | ) | 250.0 | % | ||||||||||||
| Total revenues | 35.7 | 19.3 | 33.8 | (75.3 | ) | 13.5 | 95.2 | (85.8 | )% | ||||||||||||
| Benefits, losses and expenses: | |||||||||||||||||||||
| Policyholder benefits | (0.5 | ) | 0.3 | 0.1 | 0.3 | 0.2 | — | N/A | |||||||||||||
| Selling, underwriting, general and administrative expenses | 42.5 | 29.9 | 59.1 | 50.0 | 181.5 | 197.3 | (8.0 | )% | |||||||||||||
| Iké net losses | — | — | 4.5 | 1.4 | 5.9 | 163.0 | (96.4 | )% | |||||||||||||
| Interest expense | 26.8 | 25.5 | 26.7 | 25.5 | 104.5 | 110.6 | (5.5 | )% | |||||||||||||
| Loss on extinguishment of debt | — | — | — | — | — | 31.4 | (100.0 | )% | |||||||||||||
| Total benefits, losses and expenses | 68.8 | 55.7 | 90.4 | 77.2 | 292.1 | 502.3 | (41.8 | )% | |||||||||||||
| Net loss from continuing operations before benefit for income taxes | (33.1 | ) | (36.4 | ) | (56.6 | ) | (152.5 | ) | (278.6 | ) | (407.1 | ) | 31.6 | % | |||||||
| Benefit for income taxes | (3.2 | ) | (4.7 | ) | (14.1 | ) | (106.0 | ) | (128.0 | ) | (45.5 | ) | (181.3 | )% | |||||||
| Net loss from continuing operations | $ | (29.9 | ) | $ | (31.7 | ) | $ | (42.5 | ) | $ | (46.5 | ) | $ | (150.6 | ) | $ | (361.6 | ) | **** | 58.4 | % |
| Corporate and Other Net Operating Loss Reconciliation^(1)^ | |||||||||||||||||||||
| Total Corporate and Other net loss from continuing operations | $ | (29.9 | ) | $ | (31.7 | ) | $ | (42.5 | ) | $ | (46.5 | ) | $ | (150.6 | ) | $ | (361.6 | ) | 58.4 | % | |
| Adjustments, net of tax: | |||||||||||||||||||||
| Interest expense | 21.1 | 19.9 | 20.1 | 20.1 | 81.2 | 82.9 | (2.1 | )% | |||||||||||||
| Net realized (gains) losses on investments | (22.4 | ) | (13.5 | ) | (22.7 | ) | 67.2 | 8.6 | (47.2 | ) | 118.2 | % | |||||||||
| COVID-19 direct and incremental expenses | 4.2 | (0.3 | ) | 15.0 | 2.3 | 21.2 | — | N/A | |||||||||||||
| CARES Act tax benefit | — | — | (5.1 | ) | (79.3 | ) | (84.4 | ) | — | N/A | |||||||||||
| Assurant Health runoff operations | (12.2 | ) | (0.4 | ) | (0.2 | ) | 0.1 | (12.7 | ) | (22.1 | ) | 42.5 | % | ||||||||
| Net charge related to Iké | — | — | 3.5 | 5.8 | 9.3 | 163.9 | (94.3 | )% | |||||||||||||
| Loss on extinguishment of debt and other related costs | — | — | — | — | — | 29.6 | (100.0 | )% | |||||||||||||
| Net loss (income) attributable to non-controlling interests | 0.2 | 0.3 | (0.3 | ) | (1.1 | ) | (0.9 | ) | (4.2 | ) | 78.6 | % | |||||||||
| Other adjustments^(2)^ | 12.4 | — | 3.4 | 9.6 | 25.4 | 64.6 | (60.7 | )% | |||||||||||||
| Corporate and Other net operating loss, as adjusted | $ | (26.6 | ) | $ | (25.7 | ) | $ | (28.8 | ) | $ | (21.8 | ) | $ | (102.9 | ) | $ | (94.1 | ) | **** | (9.4 | )% |
| Corporate and Other Adjusted EBITDA Reconciliation | |||||||||||||||||||||
| Total Corporate and Other net loss from continuing operations | $ | (29.9 | ) | $ | (31.7 | ) | $ | (42.5 | ) | $ | (46.5 | ) | $ | (150.6 | ) | $ | (361.6 | ) | 58.4 | % | |
| Less: | |||||||||||||||||||||
| Interest expense | 26.8 | 25.5 | 26.7 | 25.5 | 104.5 | 110.6 | (5.5 | )% | |||||||||||||
| Benefit for income taxes | (3.2 | ) | (4.7 | ) | (14.1 | ) | (106.0 | ) | (128.0 | ) | (45.5 | ) | (181.3 | )% | |||||||
| Depreciation expense | 1.1 | 0.7 | 1.1 | 1.2 | 4.1 | 11.6 | (64.7 | )% | |||||||||||||
| Adjustments, pre-tax: | |||||||||||||||||||||
| Net realized (gains) losses on investments | (29.6 | ) | (17.1 | ) | (28.9 | ) | 85.0 | 9.4 | (57.0 | ) | 116.5 | % | |||||||||
| COVID-19 direct and incremental expenses | 5.3 | (0.6 | ) | 17.5 | 3.0 | 25.2 | — | N/A | |||||||||||||
| Assurant Health runoff operations | (15.5 | ) | (0.5 | ) | (0.2 | ) | 0.1 | (16.1 | ) | (28.0 | ) | 42.5 | % | ||||||||
| Net charge related to Iké | — | — | 4.5 | 1.4 | 5.9 | 163.0 | (96.4 | )% | |||||||||||||
| Loss on extinguishment of debt and other related costs | — | — | — | — | — | 31.8 | (100.0 | )% | |||||||||||||
| Loss (income) attributable to non-controlling interests | 0.3 | 0.2 | (0.3 | ) | (1.4 | ) | (1.2 | ) | (5.1 | ) | 76.5 | % | |||||||||
| Other adjustments^(3)^ | 14.4 | (4.8 | ) | 2.4 | 10.4 | 22.4 | 72.7 | (69.2 | )% | ||||||||||||
| Corporate and Other Adjusted EBITDA | $ | (30.3 | ) | $ | (33.0 | ) | $ | (33.8 | ) | $ | (27.3 | ) | $ | (124.4 | ) | $ | (107.5 | ) | **** | (15.7 | )% |
| (1) | See Footnote (7) in Regulation G - Non GAAP Financial Measures. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (2) | Refer to Footnote (1) in the Regulation G - Non GAAP Financial Measures for detail of what is included in<br>other adjustments. | ||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| (3) | Refer to Footnote (4) in the Regulation G - Non GAAP Financial Measures for detail of what is included in<br>other adjustments. | ||||||||||||||||||||
| --- | --- |
Assurant, Inc.
Segment Condensed Balance Sheets
(Unaudited)
Note: Refer to page 17 for a reconciliation to the amounts originally reported in thefinancial supplement dated December 31, 2020 and published on February 9, 2021. ****
| Global Housing | Total Corporate and<br>Other^(1)^ | Consolidated | ||||||
| ( in millions) | ||||||||
| Assets | ||||||||
| Investments and cash and cash equivalents | 6,725.4 | $ | 2,248.6 | $ | 1,456.4 | $ | 10,430.4 | |
| Reinsurance recoverables(2) | 4,593.7 | 694.8 | 1,316.9 | 6,605.4 | ||||
| Deferred acquisition costs | 7,236.0 | 152.2 | (0.2 | ) | 7,388.0 | |||
| Goodwill | 2,209.8 | 379.5 | — | 2,589.3 | ||||
| Value of business acquired | 1,152.2 | — | — | 1,152.2 | ||||
| Assets held in separate accounts | — | — | 11.5 | 11.5 | ||||
| Other assets | 2,443.7 | 539.2 | 271.5 | 3,254.4 | ||||
| Assets held for sale | — | — | 13,218.7 | 13,218.7 | ||||
| Total assets | 24,360.8 | $ | 4,014.3 | $ | 16,274.8 | $ | 44,649.9 | |
| Liabilities | ||||||||
| Policyholder benefits and claims<br>payable(2) | 819.6 | $ | 651.9 | $ | 1,497.3 | $ | 2,968.8 | |
| Unearned premiums | 15,818.0 | 1,467.4 | 7.7 | 17,293.1 | ||||
| Debt | — | — | 2,252.9 | 2,252.9 | ||||
| Liabilities related to separate accounts | — | — | 11.5 | 11.5 | ||||
| Accounts payable and other liabilities | 3,205.7 | 379.9 | 471.9 | 4,057.5 | ||||
| Liabilities held for sale | — | — | 12,111.3 | 12,111.3 | ||||
| Total liabilities | 19,843.3 | 2,499.2 | 16,352.6 | 38,695.1 | ||||
| Stockholders’ equity | ||||||||
| Equity, excluding accumulated other comprehensive income | 4,517.5 | 1,515.1 | (791.0 | ) | 5,241.6 | |||
| Accumulated other comprehensive income | — | — | 709.8 | 709.8 | ||||
| Total Assurant, Inc. stockholders’ equity | 4,517.5 | 1,515.1 | (81.2 | ) | 5,951.4 | |||
| Non-controlling interest | — | — | 3.4 | 3.4 | ||||
| Total equity | 4,517.5 | 1,515.1 | (77.8 | ) | 5,954.8 | |||
| Total liabilities and equity | 24,360.8 | $ | 4,014.3 | $ | 16,274.8 | $ | 44,649.9 |
All values are in US Dollars.
| (1) | Total Corporate and Other segment includes all accumulated other comprehensive income, reinsurance recoverables<br>and separate accounts related to the sale of businesses by reinsurance. Additionally, the Total Corporate and Other segment includes amounts related to the Assurant Health business, which is in runoff. |
|---|---|
| (2) | Global Housing’s reinsurance recoverables and policyholder benefits and claims payable as of<br>December 31, 2020 and December 31, 2019 include $96 million and $87 million, respectively, of balances ceded to the U.S. government. Assurant acts as an administrator for the U.S. government under the voluntary National Flood Insurance<br>Program. |
| --- | --- |
Assurant, Inc.
Summary of Discontinued Operations
(Unaudited)
| 2020 | Twelve Months | 12M20-12M19<br>% Change | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | ||||||||||||||
| Net Income (Loss) from Discontinued Operations: | ||||||||||||||||||||
| Global Preneed net operating income as<br>reported^(1)^ | $ | 8.8 | $ | 13.2 | $ | 13.7 | $ | 12.3 | $ | 48.0 | $ | 52.2 | (8.0 | )% | ||||||
| Less: Corporate overhead reallocated to<br>Corporate^(2)^ | 1.6 | 1.4 | 1.4 | 1.9 | 6.3 | 5.2 | 21.2 | % | ||||||||||||
| Preneed net operating income in discontinued operations | 10.4 | 14.6 | 15.1 | 14.2 | 54.3 | 57.4 | (5.4 | )% | ||||||||||||
| Corporate and Other net operating income in discontinued operations^(2)^ | 2.1 | 0.8 | 0.5 | 0.4 | 3.8 | 3.3 | 15.2 | % | ||||||||||||
| Net realized gains (losses) on investments | 8.1 | (0.5 | ) | (3.8 | ) | (8.9 | ) | (5.1 | ) | 7.3 | (169.9 | )% | ||||||||
| Global Preneed goodwill impairment | (2.2 | ) | (135.6 | ) | — | — | (137.8 | ) | — | N/A | ||||||||||
| COVID-19 direct and incremental expenses | — | — | (0.2 | ) | (0.1 | ) | (0.3 | ) | — | N/A | ||||||||||
| Amortization of deferred gains on disposal of businesses | 1.5 | 1.6 | 1.8 | 1.9 | 6.8 | 12.4 | (45.2 | )% | ||||||||||||
| Foreign exchange related losses | — | — | — | (0.1 | ) | (0.1 | ) | — | N/A | |||||||||||
| Current expected credit losses for businesses in run-off | — | — | 0.3 | (0.2 | ) | 0.1 | — | N/A | ||||||||||||
| Net gain from deconsolidation of consolidated investment entities | — | 0.6 | — | — | 0.6 | — | N/A | |||||||||||||
| Net income (loss) from discontinued operations | $ | 19.9 | **** | $ | (118.5 | ) | $ | 13.7 | **** | $ | 7.2 | **** | $ | (77.7 | ) | $ | 80.4 | **** | (196.6 | )% |
| (1) | Global Preneed segment operating income is equal to the Global Preneed GAAP net income. | |||||||||||||||||||
| --- | --- | |||||||||||||||||||
| (2) | Corporate overhead expenses previously allocated to the Global Preneed segment have been<br>reallocated to the Corporate and Other segment upon adjustment for the discontinued operations. The total impact of discontinued operations on Corporate and Other net operating loss is comprised of the impact of the reallocation of overhead expenses<br>and the income in discontinued operations that was previously reported in Corporate and Other (mainly net investment income). | |||||||||||||||||||
| --- | --- |
Assets and Liabilities Held for Sale Related to the Discontinued Operations
| LTC, FFG, AEB,Health Run-off | OtherCorporate | Total | |||||
| ( in millions) | |||||||
| Assets | |||||||
| Investments and cash and cash equivalents | 7,378.9 | $ | — | $ | 98.7 | $ | 7,477.6 |
| Reinsurance recoverables | 69.1 | 3,164.8 | 0.6 | 3,234.5 | |||
| Deferred acquisition costs | 185.2 | — | 0.3 | 185.5 | |||
| Goodwill | — | — | — | — | |||
| Value of business acquired | 4.3 | — | — | 4.3 | |||
| Assets held in separate accounts | 165.5 | 2,011.3 | — | 2,176.8 | |||
| Other assets | 135.3 | — | 4.7 | 140.0 | |||
| Total assets | 7,938.3 | $ | 5,176.1 | $ | 104.3 | $ | 13,218.7 |
| Liabilities | |||||||
| Policyholder benefits and claims payable | 6,620.2 | $ | 3,131.9 | $ | 0.6 | $ | 9,752.7 |
| Unearned premiums | 0.8 | 14.0 | 0.1 | 14.9 | |||
| Debt | — | — | — | — | |||
| Liabilities related to separate accounts | 165.5 | 2,011.3 | — | 2,176.8 | |||
| Accounts payable and other liabilities | 160.2 | 2.7 | 4.0 | 166.9 | |||
| Total liabilities | 6,946.7 | $ | 5,159.9 | $ | 4.7 | $ | 12,111.3 |
| Stockholders’ Equity | |||||||
| Equity, excluding AOCI | 366.5 | $ | 16.2 | $ | 85.2 | $ | 467.9 |
| Accumulated other comprehensive income | 625.1 | — | 14.4 | 639.5 | |||
| Total Assurant, Inc. stockholders’ equity | 991.6 | $ | 16.2 | $ | 99.6 | $ | 1,107.4 |
| Non-controlling interest | — | — | — | — | |||
| Total equity | 991.6 | 16.2 | 99.6 | 1,107.4 | |||
| Total liabilities and equity | 7,938.3 | $ | 5,176.1 | $ | 104.3 | $ | 13,218.7 |
All values are in US Dollars.
| (1) | Amounts differ from the Global Preneed segment balance sheet reported in the financial<br>supplement dated December 31, 2020 and published on February 9, 2021 due to balances held in Corporate and Other that related to the Global Preneed business. |
|---|
Assurant, Inc.
Investments
(Unaudited)
| Reported | Impact of Discontinued Operations | Adjusted | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of December 31, | As of December 31, | As of December 31, | |||||||||||
| ($ in millions) | 2020 | 2020 | 2020 | ||||||||||
| Investments by type | |||||||||||||
| Fixed maturity securities available for sale, at fair value | $ | 13,449.0 | 75.2 | % | $ | (6,633.5 | ) | 88.7 | % | $ | 6,815.5 | 65.3 | % |
| Equity securities, at fair value | |||||||||||||
| Preferred stock | 339.2 | 1.9 | % | (106.5 | ) | 1.4 | % | 232.7 | 2.2 | % | |||
| Common stock | 22.6 | 0.1 | % | (7.4 | ) | 0.1 | % | 15.2 | 0.2 | % | |||
| Mutual funds | 42.3 | 0.2 | % | — | — | % | 42.3 | 0.4 | % | ||||
| Commercial mortgage whole loans on real estate, at amortized cost | 754.3 | 4.2 | % | (616.0 | ) | 8.2 | % | 138.3 | 1.3 | % | |||
| Short-term investments | 333.2 | 1.9 | % | (41.2 | ) | 0.6 | % | 292.0 | 2.8 | % | |||
| Other investments | 738.8 | 4.1 | % | (52.0 | ) | 0.7 | % | 686.8 | 6.6 | % | |||
| Total investments | 15,679.4 | 87.6 | % | (7,456.6 | ) | 99.7 | % | 8,222.8 | 78.8 | % | |||
| Cash and cash equivalents | 2,228.6 | 12.4 | % | (21.0 | ) | 0.3 | % | 2,207.6 | 21.2 | % | |||
| Total investments and cash and cash equivalents | $ | 17,908.0 | 100.0 | % | $ | (7,477.6 | ) | 100.0 | % | $ | 10,430.4 | 100.0 | % |
| Fixed Maturity Securities by Credit Quality (Fair Value) | |||||||||||||
| Aaa / Aa / A | $ | 8,168.9 | 60.7 | % | $ | (4,117.6 | ) | 62.1 | % | $ | 4,051.3 | 59.5 | % |
| Baa | 4,624.1 | 34.4 | % | (2,336.0 | ) | 35.2 | % | 2,288.1 | 33.6 | % | |||
| Ba | 548.5 | 4.1 | % | (164.1 | ) | 2.5 | % | 384.4 | 5.6 | % | |||
| B and lower | 107.5 | 0.8 | % | (15.8 | ) | 0.2 | % | 91.7 | 1.3 | % | |||
| Total | $ | 13,449.0 | 100.0 | % | $ | (6,633.5 | ) | 100.0 | % | $ | 6,815.5 | 100.0 | % |
Assurant, Inc. ****
Investments (continued) ****
(Unaudited) ****
| As Reported | Impact of Discontinued Operations | As Restated | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of December 31, 2020 | As of December 31, 2020 | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||
| ($ in millions) | Book<br>Value | Allowancefor creditlosses | Fair<br>Value | % of FairValue | NetUnrealizedGain (Loss) | BookValue | Allowancefor creditlosses | Fair<br>Value | % of FairValue | NetUnrealizedGain (Loss) | BookValue | Allowancefor creditlosses | FairValue | % of FairValue | NetUnrealizedGain (Loss) | |||||||||||||||||||||||
| Fixed Maturity Securities by Issuer Type: | ||||||||||||||||||||||||||||||||||||||
| Government: | ||||||||||||||||||||||||||||||||||||||
| U.S. Government and government agencies and authorities | $ | 98.7 | $ | — | $ | 104.7 | 0.8 | % | $ | 6.0 | $ | (8.3 | ) | $ | — | $ | (10.6 | ) | 0.2 | % | $ | (2.3 | ) | $ | 90.4 | $ | — | $ | 94.1 | 1.4 | % | $ | 3.7 | |||||
| States, municipalities and political subdivisions | 287.9 | — | 323.1 | 2.4 | % | 35.2 | (123.5 | ) | — | (147.8 | ) | 2.2 | % | (24.3 | ) | 164.4 | — | 175.3 | 2.6 | % | 10.9 | |||||||||||||||||
| Foreign governments | 886.3 | — | 1,039.9 | 7.7 | % | 153.6 | (443.9 | ) | — | (570.2 | ) | 8.6 | % | (126.3 | ) | 442.4 | — | 469.7 | 6.9 | % | 27.3 | |||||||||||||||||
| Corporate: | ||||||||||||||||||||||||||||||||||||||
| Canadian municipals | 154.3 | — | 187.4 | 1.4 | % | 33.1 | (137.7 | ) | — | (169.3 | ) | 2.6 | % | (31.6 | ) | 16.6 | — | 18.1 | 0.3 | % | 1.5 | |||||||||||||||||
| Consumer cyclical | 687.7 | — | 829.6 | 6.2 | % | 141.9 | (281.1 | ) | — | (375.4 | ) | 5.7 | % | (94.3 | ) | 406.6 | — | 454.2 | 6.7 | % | 47.6 | |||||||||||||||||
| Consumer non-cyclical | 524.3 | — | 632.3 | 4.7 | % | 108.0 | (272.7 | ) | — | (354.8 | ) | 5.3 | % | (82.1 | ) | 251.6 | — | 277.5 | 4.1 | % | 25.9 | |||||||||||||||||
| Energy | 692.6 | — | 793.7 | 5.9 | % | 101.1 | (396.3 | ) | — | (474.4 | ) | 7.2 | % | (78.1 | ) | 296.3 | — | 319.3 | 4.7 | % | 23.0 | |||||||||||||||||
| Financials | 2,569.3 | — | 3,004.4 | 22.3 | % | 435.1 | (1,110.3 | ) | — | (1,394.3 | ) | 21.0 | % | (284.0 | ) | 1,459.0 | — | 1,610.1 | 23.6 | % | 151.1 | |||||||||||||||||
| Health care | 571.1 | — | 670.2 | 5.0 | % | 99.1 | (224.5 | ) | — | (294.2 | ) | 4.4 | % | (69.7 | ) | 346.6 | — | 376.0 | 5.5 | % | 29.4 | |||||||||||||||||
| Industrials | 1,042.0 | — | 1,265.4 | 9.4 | % | 223.4 | (524.5 | ) | — | (690.9 | ) | 10.4 | % | (166.4 | ) | 517.5 | — | 574.5 | 8.4 | % | 57.0 | |||||||||||||||||
| Materials | 331.1 | (1.5 | ) | 376.1 | 2.8 | % | 46.5 | (126.3 | ) | 0.3 | (154.7 | ) | 2.3 | % | (28.7 | ) | 204.8 | (1.2 | ) | 221.4 | 3.2 | % | 17.8 | |||||||||||||||
| Other | 0.8 | — | 0.8 | — | % | — | — | — | — | — | % | — | 0.8 | — | 0.8 | — | % | — | ||||||||||||||||||||
| Technology | 383.8 | — | 446.2 | 3.3 | % | 62.4 | (105.2 | ) | — | (134.0 | ) | 2.0 | % | (28.8 | ) | 278.6 | — | 312.2 | 4.6 | % | 33.6 | |||||||||||||||||
| Telecommunications | 309.0 | — | 403.4 | 3.0 | % | 94.4 | (180.0 | ) | — | (254.1 | ) | 3.8 | % | (74.1 | ) | 129.0 | — | 149.3 | 2.2 | % | 20.3 | |||||||||||||||||
| Utilities | 1,096.8 | — | 1,356.1 | 10.1 | % | 259.3 | (659.6 | ) | — | (869.6 | ) | 13.1 | % | (210.0 | ) | 437.2 | — | 486.5 | 7.1 | % | 49.3 | |||||||||||||||||
| Asset-backed securities | 551.7 | — | 564.5 | 4.2 | % | 12.8 | (299.8 | ) | — | (304.0 | ) | 4.6 | % | (4.2 | ) | 251.9 | — | 260.5 | 3.8 | % | 8.6 | |||||||||||||||||
| Commercial mortgage-backed securities | 327.5 | — | 347.4 | 2.6 | % | 19.9 | (61.2 | ) | — | (66.0 | ) | 1.0 | % | (4.8 | ) | 266.3 | — | 281.4 | 4.1 | % | 15.1 | |||||||||||||||||
| Residential mortgage-backed securities | 1,017.5 | — | 1,103.8 | 8.2 | % | 86.3 | (331.7 | ) | — | (369.2 | ) | 5.6 | % | (37.5 | ) | 685.8 | — | 734.6 | 10.8 | % | 48.8 | |||||||||||||||||
| Total fixed maturity securities | $ | 11,532.4 | $ | (1.5 | ) | $ | 13,449.0 | 100.0 | % | $ | 1,918.1 | $ | (5,286.6 | ) | $ | 0.3 | $ | (6,633.5 | ) | 100.0 | % | $ | (1,347.2 | ) | $ | 6,245.8 | $ | (1.2 | ) | $ | 6,815.5 | 100.0 | % | $ | 570.9 |
Assurant, Inc. ****
Investment Results by Asset Category and Annualized Yields ****
(Unaudited) ****
| As Reported | Impact of Discontinued Operations | As Restated | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Twelve months ended December 31,<br><br><br>2020 | Twelve months ended December 31,2020 | Twelve months ended December 31,<br><br><br>2020 | |||||||||||||||||||||||||
| Investment | Net realized | Investment | Net realized | Investment | Net realized | ||||||||||||||||||||||
| ($ in millions) | Yield | Income | gain (loss) | Yield | Income | gain (loss) | Yield | Income | gain (loss) | ||||||||||||||||||
| Fixed maturity securities, available for sale | 4.31 | % | $ | 481.8 | $ | 14.8 | (0.55 | )% | $ | (253.4 | ) | $ | (4.7 | ) | 3.76 | % | $ | 228.4 | $ | 10.1 | |||||||
| Equity securities | 5.86 | % | 20.7 | 7.3 | (0.22 | )% | (6.2 | ) | (1.7 | ) | 5.64 | % | 14.5 | 5.6 | |||||||||||||
| Commercial mortgage loans on real estate | 4.67 | % | 36.8 | (5.4 | ) | 0.71 | % | (28.6 | ) | 4.2 | 5.38 | % | 8.2 | (1.2 | ) | ||||||||||||
| Cash and short-term investments | 0.81 | % | 19.2 | 1.5 | 0.01 | % | (0.2 | ) | — | 0.82 | % | 19.0 | 1.5 | ||||||||||||||
| Other investments^(1)^ | 6.10 | % | 42.3 | (34.4 | ) | (0.62 | )% | (6.3 | ) | 10.2 | 5.48 | % | 36.0 | (24.2 | ) | ||||||||||||
| Total | 600.8 | $ | (16.2 | ) | (294.7 | ) | $ | 8.0 | 306.1 | $ | (8.2 | ) | |||||||||||||||
| Investment expenses | (25.9 | ) | 5.4 | (20.5 | ) | ||||||||||||||||||||||
| Net investment income | $ | 574.9 | $ | (289.3 | ) | $ | 285.6 | ||||||||||||||||||||
| Gross realized gains on sales and other | $ | 46.2 | $ | (2.7 | ) | $ | 43.5 | ||||||||||||||||||||
| Gross realized losses on sales and other | (58.4 | ) | 11.4 | (47.0 | ) | ||||||||||||||||||||||
| Change in unrealized gains on equity securities | 16.3 | (1.3 | ) | 15.0 | |||||||||||||||||||||||
| Impairments | (20.3 | ) | 0.6 | (19.7 | ) | ||||||||||||||||||||||
| Net realized (losses) gains on investments | $ | (16.2 | ) | $ | 8.0 | $ | (8.2 | ) | |||||||||||||||||||
| (1) | Consists primarily of investments in joint venture partnerships, invested assets associated with a modified<br>coinsurance agreement, invested assets associated with deferred compensation, and policy loans. | ||||||||||||||||||||||||||
| --- | --- |
Assurant, Inc.
Ratings Summary^(1)^
(Unaudited)
| As of December 31, 2020 | ||||||
|---|---|---|---|---|---|---|
| A.M. Best | Moody’s | Standard &Poor’s | ||||
| Company^(2)^ | ||||||
| American Bankers Insurance Company of Florida | A | A3 | A | |||
| American Bankers Life Assurance Company of Florida | A- | Baa1 | A | |||
| American Security Insurance Company | A | A3 | A | |||
| Caribbean American Life Assurance Company | A- | N/A | N/A | |||
| Caribbean American Property Insurance Company | A | N/A | N/A | |||
| Reliable Lloyds Insurance Company | A | N/A | N/A | |||
| Standard Guaranty Insurance Company | A | N/A | N/A | |||
| Union Security Life Insurance Company of New York | B++ | N/A | N/A | |||
| Virginia Surety Insurance Company | A | N/A | N/A | |||
| Voyager Indemnity Insurance Company | A | N/A | N/A | |||
| Commercial Paper | AMB-1 | P-3 | A-2 | |||
| Senior Debt | bbb+ | Baa3 | BBB | |||
| Subordinated Debt | bbb | Ba1 | BB+ | |||
| (1) | Additional information on Assurant’s ratings is available in the Investor Relations section on<br>Assurant’s website www.assurant.com. | |||||
| --- | --- | |||||
| (2) | American Memorial Life Insurance Company, Assurant Life of Canada and Union Security<br>Insurance Company were removed from this revised financial supplement as these companies are now included in discontinued operations. | |||||
| --- | --- |
Assurant, Inc.
Reconciliation of Adjusted Financial Metrics (New Page)
(Unaudited)
| 2020 | Twelve Months | Twelve Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions, except per share amounts) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact of<br>Discontinued<br>Operations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | |||||||||||||||||||||||||||||||||||||
| Segment net earned premiums, fees and other<br>income^(1)^ | $ | 2,367.5 | $ | (53.8 | ) | $ | 2,313.7 | $ | 2,348.2 | $ | (51.9 | ) | $ | 2,296.3 | $ | 2,307.9 | $ | (50.3 | ) | $ | 2,257.6 | $ | 2,500.7 | $ | (53.4 | ) | $ | 2,447.3 | $ | 9,524.3 | $ | (209.4 | ) | $ | 9,314.9 | $ | 9,328.8 | $ | (200.9 | ) | $ | 9,127.9 | ||||||||||||
| Total segment revenues^(1)^ | $ | 2,507.9 | $ | (125.5 | ) | $ | 2,382.4 | $ | 2,479.4 | $ | (122.0 | ) | $ | 2,357.4 | $ | 2,438.6 | $ | (120.4 | ) | $ | 2,318.2 | $ | 2,647.5 | $ | (123.5 | ) | $ | 2,524.0 | $ | 10,073.4 | $ | (491.4 | ) | $ | 9,582.0 | $ | 9,960.1 | $ | (486.2 | ) | $ | 9,473.9 | ||||||||||||
| Net income from continuing operations | $ | 134.5 | $ | (15.4 | ) | $ | 119.1 | $ | (34.9 | ) | $ | 122.9 | $ | 88.0 | $ | 173.5 | $ | (8.8 | ) | $ | 164.7 | $ | 150.0 | $ | (1.4 | ) | $ | 148.6 | $ | 423.1 | $ | 97.3 | $ | 520.4 | $ | 363.9 | $ | (57.5 | ) | $ | 306.4 | |||||||||||||
| Net operating income, as adjusted^(2)^ | $ | 109.1 | $ | (12.5 | ) | $ | 96.6 | $ | 84.8 | $ | (15.4 | ) | $ | 69.4 | $ | 169.3 | $ | (15.6 | ) | $ | 153.7 | $ | 163.1 | $ | (14.6 | ) | $ | 148.5 | $ | 526.3 | $ | (58.1 | ) | $ | 468.2 | $ | 533.0 | $ | (60.7 | ) | $ | 472.3 | ||||||||||||
| Net operating income as adjusted, excluding reportable catastrophes^(2)(3)^ | $ | 136.4 | $ | (12.5 | ) | $ | 123.9 | $ | 171.8 | $ | (15.4 | ) | $ | 156.4 | $ | 179.3 | $ | (15.6 | ) | $ | 163.7 | $ | 176.0 | $ | (14.6 | ) | $ | 161.4 | $ | 663.5 | $ | (58.1 | ) | $ | 605.4 | $ | 574.0 | $ | (60.7 | ) | $ | 513.3 | ||||||||||||
| Per share: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income from continuing operations, per diluted share | $ | 2.23 | $ | (0.32 | ) | $ | 1.91 | $ | (0.58 | ) | $ | 1.96 | $ | 1.38 | $ | 2.81 | $ | (0.22 | ) | $ | 2.59 | $ | 2.43 | $ | (0.11 | ) | $ | 2.32 | $ | 6.99 | $ | 1.23 | $ | 8.22 | $ | 5.84 | $ | (1.28 | ) | $ | 4.56 | |||||||||||||
| Net operating income, as adjusted, per diluted<br>share^(2)^ | $ | 1.82 | $ | (0.20 | ) | $ | 1.62 | $ | 1.41 | $ | (0.26 | ) | $ | 1.15 | $ | 2.75 | $ | (0.25 | ) | $ | 2.50 | $ | 2.64 | $ | (0.23 | ) | $ | 2.41 | $ | 8.63 | $ | (0.92 | ) | $ | 7.71 | $ | 8.55 | $ | (0.97 | ) | $ | 7.58 | ||||||||||||
| Net operating income, as adjusted, excluding reportable catastrophes, per diluted share^(2)(3)^ | $ | 2.26 | $ | (0.20 | ) | $ | 2.06 | $ | 2.85 | $ | (0.26 | ) | $ | 2.59 | $ | 2.90 | $ | (0.24 | ) | $ | 2.66 | $ | 2.84 | $ | (0.23 | ) | $ | 2.61 | $ | 10.80 | $ | (0.92 | ) | $ | 9.88 | $ | 9.21 | $ | (0.97 | ) | $ | 8.24 | ||||||||||||
| SHARE DATA: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average basic common shares outstanding | 59,310,101 | — | 59,310,101 | 60,190,103 | — | 60,190,103 | 60,363,577 | — | 60,363,577 | 60,602,911 | — | 60,602,911 | 60,114,670 | — | 60,114,670 | 61,942,969 | — | 61,942,969 | ||||||||||||||||||||||||||||||||||||
| Incremental common shares from: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Performance share units and employee stock purchase plan^(4)^ | 387,292 | — | 387,292 | — | 235,619 | 235,619 | 206,362 | — | 206,362 | 327,840 | — | 327,840 | 363,343 | — | 363,343 | 370,499 | — | 370,499 | ||||||||||||||||||||||||||||||||||||
| Mandatory convertible preferred<br>stock^(5)^ | 2,701,925 | — | 2,701,925 | — | — | — | 2,777,250 | — | 2,777,250 | 2,696,175 | — | 2,696,175 | 2,701,925 | — | 2,701,925 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Weighted average diluted common shares outstanding | 62,399,318 | — | 62,399,318 | 60,190,103 | 235,619 | 60,425,722 | 63,347,189 | — | 63,347,189 | 63,626,926 | — | 63,626,926 | 63,179,938 | — | 63,179,938 | 62,313,468 | — | 62,313,468 | ||||||||||||||||||||||||||||||||||||
| Segment net earned premiums, fees and otherincome^(6)^ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Global Lifestyle | $ | 1,817.0 | — | $ | 1,817.0 | $ | 1,805.0 | — | $ | 1,805.0 | $ | 1,768.7 | — | $ | 1,768.7 | $ | 1,946.9 | — | $ | 1,946.9 | $ | 7,337.6 | — | $ | 7,337.6 | $ | 7,094.2 | — | $ | 7,094.2 | ||||||||||||||||||||||||
| Global Housing | 496.7 | — | 496.7 | 491.3 | — | 491.3 | 488.9 | — | 488.9 | 500.4 | — | 500.4 | 1,977.3 | — | 1,977.3 | 2,033.7 | — | 2,033.7 | ||||||||||||||||||||||||||||||||||||
| Global Preneed | 53.8 | (53.8 | ) | — | 51.9 | (51.9 | ) | — | 50.3 | (50.3 | ) | — | 53.4 | (53.4 | ) | — | 209.4 | (209.4 | ) | — | 200.9 | (200.9 | ) | — | ||||||||||||||||||||||||||||||
| Total | $ | 2,367.5 | $ | (53.8 | ) | $ | 2,313.7 | $ | 2,348.2 | $ | (51.9 | ) | $ | 2,296.3 | $ | 2,307.9 | $ | (50.3 | ) | $ | 2,257.6 | $ | 2,500.7 | $ | (53.4 | ) | $ | 2,447.3 | $ | 9,524.3 | $ | (209.4 | ) | $ | 9,314.9 | $ | 9,328.8 | $ | (200.9 | ) | $ | 9,127.9 | ||||||||||||
| Segment net operating income, asadjusted^(7)^ | $ | 157.8 | $ | (8.8 | ) | $ | 149.0 | $ | 132.9 | $ | (13.2 | ) | $ | 119.7 | $ | 220.9 | $ | (13.7 | ) | $ | 207.2 | $ | 207.4 | $ | (12.3 | ) | $ | 195.1 | $ | 719.0 | $ | (48.0 | ) | $ | 671.0 | $ | 720.2 | $ | (52.2 | ) | $ | 668.0 | ||||||||||||
| Segment net operatingmargin^(8)^ | 6.7 | % | (0.3 | )% | 6.4 | % | 5.7 | % | (0.5 | )% | 5.2 | % | 9.6 | % | (0.4 | )% | 9.2 | % | 8.3 | % | (0.3 | )% | 8.0 | % | 7.5 | % | (0.3 | )% | 7.2 | % | 7.7 | % | (0.4 | )% | 7.3 | % | ||||||||||||||||||
| (1) | Included Global Lifestyle, Global Housing and Global Preneed as originally reported. As adjusted, this excludes<br>Global Preneed, which is now reflected in discontinued operations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) | Refer to the Footnotes in Regulation G - Non GAAP Financial Measures for reconciliations of non-GAAP measures<br>to the most comparable GAAP measure. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3) | Represents reportable catastrophe losses net of reinsurance and client profit sharing adjustments and including<br>reinstatement and other premiums. Reportable catastrophes include individual Insurance Services Office (“ISO”) events greater than $5 million (pre-tax). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (4) | Upon adjusting 3Q 2020 for discontinued operations, the incremental common shares from performance share units<br>and the employee stock purchase plan became dilutive. As reported in the financial supplement dated December 31, 2020 and published on February 9, 2021, these potentially dilutive securities were anti-dilutive and therefore, excluded from<br>the weighted average diluted common shares outstanding. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (5) | Dilution for the mandatory convertible preferred stock is calculated based on the assumed conversion of the<br>outstanding mandatory convertible preferred stock, using the average closing stock price for the period the shares were outstanding. Net income attributable to common stockholders per diluted share excludes the effect of shares of potentially<br>dilutive securities which were anti-dilutive for the period. Accordingly, the numerator has not been increased by the amount of the preferred stock dividends in the periods in which the incremental common shares from mandatory convertible preferred<br>stock were anti-dilutive. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (6) | Included net earned premiums, fees and other income of the Global Lifestyle, Global Housing and Global Preneed<br>operating segments as originally reported. As adjusted, this excludes Global Preneed, which is now reflected in discontinued operations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (7) | Included net operating income of the Global Lifestyle, Global Housing and Global Preneed operating segments as<br>originally reported. As adjusted, this excludes Global Preneed, which is now reflected in discontinued operations. Segment net operating income is equal to GAAP segment net income. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (8) | Equals segment net operating income divided by segment net earned premiums, fees and other income.<br> | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- |
Assurant, Inc.
Reconciliation of Consolidated Condensed Statements of Operations, As Adjusted (NewPage) ****
(Unaudited)
| 2020 | Twelve Months | Twelve Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact of<br>Discontinued<br>Operations | Adjusted | Reported | Impact of<br>Discontinued<br>Operations | Adjusted | Reported | Impact of<br>Discontinued<br>Operations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact of<br>Discontinued<br>Operations | Adjusted | Reported | Impact of<br>Discontinued<br>Operations | Adjusted | |||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net earned premiums | $ | 2,119.7 | $ | (17.5 | ) | $ | 2,102.2 | $ | 2,102.8 | $ | (16.0 | ) | $ | 2,086.8 | $ | 2,036.4 | $ | (15.1 | ) | $ | 2,021.3 | $ | 2,083.8 | $ | (18.3 | ) | $ | 2,065.5 | $ | 8,342.7 | $ | (66.9 | ) | $ | 8,275.8 | $ | 8,020.0 | $ | (61.2 | ) | $ | 7,958.8 | ||||||||||||
| Fees and other income | 248.4 | (35.6 | ) | 212.8 | 245.9 | (36.6 | ) | 209.3 | 271.5 | (35.2 | ) | 236.3 | 416.9 | (35.1 | ) | 381.8 | 1182.7 | (142.5 | ) | 1040.2 | 1311.2 | (139.7 | ) | 1171.5 | ||||||||||||||||||||||||||||||
| Total net earned premiums, fees and other income | 2,368.1 | (53.1 | ) | 2,315.0 | 2,348.7 | (52.6 | ) | 2,296.1 | 2,307.9 | (50.3 | ) | 2,257.6 | 2,500.7 | (53.4 | ) | 2,447.3 | 9,525.4 | (209.4 | ) | 9,316.0 | 9,331.2 | (200.9 | ) | 9,130.3 | ||||||||||||||||||||||||||||||
| Net investment income | 146.6 | (73.3 | ) | 73.3 | 135.1 | (71.8 | ) | 63.3 | 137.2 | (71.8 | ) | 65.4 | 156.0 | (72.4 | ) | 83.6 | 574.9 | (289.3 | ) | 285.6 | 675.0 | (291.8 | ) | 383.2 | ||||||||||||||||||||||||||||||
| Net realized gains (losses) on investments | 38.4 | (8.7 | ) | 29.7 | 16.6 | 0.6 | 17.2 | 24.1 | 4.8 | 28.9 | (95.3 | ) | 11.3 | (84.0 | ) | (16.2 | ) | 8.0 | (8.2 | ) | 66.3 | (9.3 | ) | 57.0 | ||||||||||||||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | 2.0 | (1.9 | ) | 0.1 | 2.1 | (2.0 | ) | 0.1 | 2.4 | (2.3 | ) | 0.1 | 4.2 | (2.4 | ) | 1.8 | 10.7 | (8.6 | ) | 2.1 | 14.3 | (15.7 | ) | (1.4 | ) | |||||||||||||||||||||||||||||
| Total revenues | 2,555.1 | (137.0 | ) | 2,418.1 | 2,502.5 | (125.8 | ) | 2,376.7 | 2,471.6 | (119.6 | ) | 2,352.0 | 2,565.6 | (116.9 | ) | 2,448.7 | 10,094.8 | (499.3 | ) | 9,595.5 | 10,086.8 | (517.7 | ) | 9,569.1 | ||||||||||||||||||||||||||||||
| Benefits, losses and expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Policyholder benefits | 640.4 | (72.8 | ) | 567.6 | 709.6 | (71.1 | ) | 638.5 | 592.1 | (68.5 | ) | 523.6 | 607.2 | (72.0 | ) | 535.2 | 2,549.3 | (284.4 | ) | 2,264.9 | 2,654.7 | (269.0 | ) | 2,385.7 | ||||||||||||||||||||||||||||||
| Selling, underwriting, general and administrative expenses | 1,704.5 | (39.7 | ) | 1,664.8 | 1,633.7 | (33.5 | ) | 1,600.2 | 1,621.5 | (33.6 | ) | 1,587.9 | 1,822.3 | (35.8 | ) | 1,786.5 | 6,782.0 | (142.6 | ) | 6,639.4 | 6,572.6 | (148.9 | ) | 6,423.7 | ||||||||||||||||||||||||||||||
| Goodwill impairment | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | — | — | — | 137.8 | (137.8 | ) | — | — | — | |||||||||||||||||||||||||||||||||||
| Iké net losses | — | — | — | — | — | — | 4.5 | — | 4.5 | 1.4 | — | 1.4 | 5.9 | — | 5.9 | 163.0 | — | 163.0 | ||||||||||||||||||||||||||||||||||||
| Interest expense | 26.8 | — | 26.8 | 25.5 | — | 25.5 | 26.7 | — | 26.7 | 25.5 | — | 25.5 | 104.5 | — | 104.5 | 110.6 | — | 110.6 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 31.4 | — | 31.4 | ||||||||||||||||||||||||||||||||||||
| Total benefits, losses and expenses | 2,371.7 | (112.5 | ) | 2,259.2 | 2,506.6 | (242.4 | ) | 2,264.2 | 2,244.8 | (102.1 | ) | 2,142.7 | 2,456.4 | (107.8 | ) | 2,348.6 | 9,579.5 | (564.8 | ) | 9,014.7 | 9,532.3 | (417.9 | ) | 9,114.4 | ||||||||||||||||||||||||||||||
| Income from continuing operations before provision (benefit) for income taxes | 183.4 | (24.5 | ) | 158.9 | (4.1 | ) | 116.6 | 112.5 | 226.8 | (17.5 | ) | 209.3 | 109.2 | (9.1 | ) | 100.1 | 515.3 | 65.5 | 580.8 | 554.5 | (99.8 | ) | 454.7 | |||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 44.4 | (4.6 | ) | 39.8 | 26.4 | (1.9 | ) | 24.5 | 48.4 | (3.8 | ) | 44.6 | (46.6 | ) | (1.9 | ) | (48.5 | ) | 72.6 | (12.2 | ) | 60.4 | 167.7 | (19.4 | ) | 148.3 | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | **** | 139.0 | **** | **** | (19.9 | ) | **** | 119.1 | **** | **** | (30.5 | ) | **** | 118.5 | **** | **** | 88.0 | **** | **** | 178.4 | **** | **** | (13.7 | ) | **** | 164.7 | **** | **** | 155.8 | **** | **** | (7.2 | ) | **** | 148.6 | **** | **** | 442.7 | **** | **** | 77.7 | **** | **** | 520.4 | **** | **** | 386.8 | **** | **** | (80.4 | ) | **** | 306.4 | **** |
| Net Income (loss) from discontinued operations | — | 19.9 | 19.9 | — | (118.5 | ) | (118.5 | ) | — | 13.7 | 13.7 | — | 7.2 | 7.2 | — | (77.7 | ) | (77.7 | ) | — | 80.4 | 80.4 | ||||||||||||||||||||||||||||||||
| Net income (loss) | 139.0 | — | 139.0 | (30.5 | ) | — | (30.5 | ) | 178.4 | — | 178.4 | 155.8 | — | 155.8 | 442.7 | — | 442.7 | 386.8 | — | 386.8 | ||||||||||||||||||||||||||||||||||
| Less: Net loss (income) attributable to non-controlling interests | 0.2 | — | 0.2 | 0.3 | — | 0.3 | (0.3 | ) | — | (0.3 | ) | (1.1 | ) | — | (1.1 | ) | (0.9 | ) | — | (0.9 | ) | (4.2 | ) | — | (4.2 | ) | ||||||||||||||||||||||||||||
| Net income (loss) attributable to stockholders | 139.2 | — | 139.2 | (30.2 | ) | — | (30.2 | ) | 178.1 | — | 178.1 | 154.7 | — | 154.7 | 441.8 | — | 441.8 | 382.6 | — | 382.6 | ||||||||||||||||||||||||||||||||||
| Less: Preferred stock dividends | (4.7 | ) | — | (4.7 | ) | (4.7 | ) | — | (4.7 | ) | (4.6 | ) | — | (4.6 | ) | (4.7 | ) | — | (4.7 | ) | (18.7 | ) | — | (18.7 | ) | (18.7 | ) | — | (18.7 | ) | ||||||||||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 134.5 | **** | $ | — | **** | $ | 134.5 | **** | $ | (34.9 | ) | $ | — | **** | $ | (34.9 | ) | $ | 173.5 | **** | $ | — | **** | $ | 173.5 | **** | $ | 150.0 | **** | $ | — | **** | $ | 150.0 | **** | $ | 423.1 | **** | $ | — | **** | $ | 423.1 | **** | $ | 363.9 | **** | $ | — | **** | $ | 363.9 | **** |
| Pre-tax income (loss) margin^(1)^ | 7.7 | % | (0.8 | )% | 6.9 | % | (0.2 | )% | — | % | (0.2 | )% | 9.8 | % | — | % | 9.8 | % | 4.4 | % | — | % | 4.4 | % | 5.4 | % | 0.8 | % | 6.2 | % | 5.9 | % | — | % | 5.9 | % | ||||||||||||||||||
| Net income (loss) from continuing operations<br>margin^(2)^ | 5.7 | % | (0.6 | )% | 5.1 | % | (1.5 | )% | 5.3 | % | 3.8 | % | 7.5 | % | (0.2 | )% | 7.3 | % | 6.0 | % | 0.1 | % | 6.1 | % | 4.4 | % | 1.2 | % | 5.6 | % | 3.9 | % | (0.5 | )% | 3.4 | % | ||||||||||||||||||
| Effective tax rate for net income from continuing operations | 24.2 | % | 0.8 | % | 25.0 | % | (643.9 | )% | — | % | (643.9 | )% | 21.3 | % | — | % | 21.3 | % | (42.7 | )% | — | % | (42.7 | )% | 14.1 | % | (3.7 | )% | 10.4 | % | 30.2 | % | — | % | 30.2 | % | ||||||||||||||||||
| Investment yield^(3)^ | 3.71 | % | (0.87 | )% | 2.84 | % | 3.48 | % | (0.94 | )% | 2.54 | % | 3.62 | % | (0.86 | )% | 2.76 | % | 4.06 | % | (0.50 | )% | 3.56 | % | 3.71 | % | (0.80 | )% | 2.91 | % | 4.48 | % | (0.33 | )% | 4.15 | % | ||||||||||||||||||
| Real estate joint venture partnerships income from sales and depreciation expense, pre-tax^(3)^ | $ | (1.3 | ) | $ | 0.4 | $ | (0.9 | ) | $ | (2.0 | ) | $ | 0.4 | $ | (1.6 | ) | $ | (1.6 | ) | 0.4 | $ | (1.2 | ) | $ | (2.4 | ) | 0.5 | $ | (1.9 | ) | $ | (7.3 | ) | 1.7 | $ | (5.6 | ) | $ | 11.1 | (0.7 | ) | $ | 10.4 | |||||||||||
| (1) | Equals income (loss) before provision (benefit) for income taxes divided by total net earned premiums, fees and<br>other income. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) | Equals net income (loss) attibutable to common stockholders divided by total net earned premiums, fees and<br>other income. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3) | Excludes investment income attributable to non-controlling interests. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- |
Total Corporate and Other
Reconciliation of Condensed Statements of Operations and Selected Data, As Adjusted (NewPage) ****
(Unaudited)
| 2020 | Twelve Months | Twelve Months | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | |||||||||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net earned premiums | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
| Fees and other income | 0.6 | 0.7 | 1.3 | 0.5 | (0.7 | ) | (0.2 | ) | — | — | — | — | — | — | 1.1 | — | 1.1 | 2.4 | — | 2.4 | ||||||||||||||||||||||||||||||||||
| Net investment income | 6.2 | (1.6 | ) | 4.6 | 3.9 | (1.7 | ) | 2.2 | 6.5 | (1.7 | ) | 4.8 | 9.2 | (2.3 | ) | 6.9 | 25.8 | (7.3 | ) | 18.5 | 43.7 | (6.5 | ) | 37.2 | ||||||||||||||||||||||||||||||
| Net realized gains (losses) on investments | 38.4 | (8.7 | ) | 29.7 | 16.6 | 0.6 | 17.2 | 24.1 | 4.8 | 28.9 | (95.3 | ) | 11.3 | (84.0 | ) | (16.2 | ) | 8.0 | (8.2 | ) | 66.3 | (9.3 | ) | 57.0 | ||||||||||||||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | 2.0 | (1.9 | ) | 0.1 | 2.1 | (2.0 | ) | 0.1 | 2.4 | (2.3 | ) | 0.1 | 4.2 | (2.4 | ) | 1.8 | 10.7 | (8.6 | ) | 2.1 | 14.3 | (15.7 | ) | (1.4 | ) | |||||||||||||||||||||||||||||
| Total revenues | 47.2 | (11.5 | ) | 35.7 | 23.1 | (3.8 | ) | 19.3 | 33.0 | 0.8 | 33.8 | (81.9 | ) | 6.6 | (75.3 | ) | 21.4 | (7.9 | ) | 13.5 | 126.7 | (31.5 | ) | 95.2 | ||||||||||||||||||||||||||||||
| Benefits, losses and expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Policyholder benefits | (0.5 | ) | — | (0.5 | ) | 0.3 | — | 0.3 | 0.1 | — | 0.1 | 0.3 | — | 0.3 | 0.2 | — | 0.2 | — | — | — | ||||||||||||||||||||||||||||||||||
| Selling, underwriting, general and administrative expenses | 39.9 | 2.6 | 42.5 | 29.2 | 0.7 | 29.9 | 58.3 | 0.8 | 59.1 | 49.9 | 0.1 | 50.0 | 177.3 | 4.2 | 181.5 | 194.0 | 3.3 | 197.3 | ||||||||||||||||||||||||||||||||||||
| Goodwill impairment | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Iké net losses | — | — | — | — | — | — | 4.5 | — | 4.5 | 1.4 | — | 1.4 | 5.9 | — | 5.9 | 163.0 | — | 163.0 | ||||||||||||||||||||||||||||||||||||
| Interest expense | 26.8 | — | 26.8 | 25.5 | — | 25.5 | 26.7 | — | 26.7 | 25.5 | — | 25.5 | 104.5 | — | 104.5 | 110.6 | — | 110.6 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 31.4 | — | 31.4 | ||||||||||||||||||||||||||||||||||||
| Total benefits, losses and expenses | 66.2 | 2.6 | 68.8 | 192.8 | (137.1 | ) | 55.7 | 89.6 | 0.8 | 90.4 | 77.1 | 0.1 | 77.2 | 425.7 | (133.6 | ) | 292.1 | 499.0 | 3.3 | 502.3 | ||||||||||||||||||||||||||||||||||
| Net loss from continuing operations before benefit for income taxes | (19.0 | ) | (14.1 | ) | (33.1 | ) | (169.7 | ) | 133.3 | (36.4 | ) | (56.6 | ) | — | (56.6 | ) | (159.0 | ) | 6.5 | (152.5 | ) | (404.3 | ) | 125.7 | (278.6 | ) | (372.3 | ) | (34.8 | ) | (407.1 | ) | ||||||||||||||||||||||
| Benefit for income taxes | (0.2 | ) | (3.0 | ) | (3.2 | ) | (6.3 | ) | 1.6 | (4.7 | ) | (14.1 | ) | — | (14.1 | ) | (107.4 | ) | 1.4 | (106.0 | ) | (128.0 | ) | — | (128.0 | ) | (38.9 | ) | (6.6 | ) | (45.5 | ) | ||||||||||||||||||||||
| Net loss from continuing operations | $ | (18.8 | ) | $ | (11.1 | ) | $ | (29.9 | ) | $ | (163.4 | ) | $ | 131.7 | **** | $ | (31.7 | ) | $ | (42.5 | ) | $ | — | **** | $ | (42.5 | ) | $ | (51.6 | ) | $ | 5.1 | **** | $ | (46.5 | ) | $ | (276.3 | ) | $ | 125.7 | **** | $ | (150.6 | ) | $ | (333.4 | ) | $ | (28.2 | ) | $ | (361.6 | ) |
| Corporate and Other Net Operating Loss Reconciliation^(1)^ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Corporate and Other net loss from continuing operations | $ | (18.8 | ) | $ | (11.1 | ) | $ | (29.9 | ) | $ | (163.4 | ) | $ | 131.7 | **** | $ | (31.7 | ) | $ | (42.5 | ) | $ | — | **** | $ | (42.5 | ) | $ | (51.6 | ) | $ | 5.1 | **** | $ | (46.5 | ) | $ | (276.3 | ) | $ | 125.7 | **** | $ | (150.6 | ) | $ | (333.4 | ) | $ | (28.2 | ) | $ | (361.6 | ) |
| Adjustments, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | 21.1 | — | 21.1 | 19.9 | — | 19.9 | 20.1 | — | 20.1 | 20.1 | — | 20.1 | 81.2 | — | 81.2 | 82.9 | — | 82.9 | ||||||||||||||||||||||||||||||||||||
| Net realized (gains) losses on investments | (30.5 | ) | 8.1 | (22.4 | ) | (13.0 | ) | (0.5 | ) | (13.5 | ) | (18.9 | ) | (3.8 | ) | (22.7 | ) | 76.1 | (8.9 | ) | 67.2 | 13.7 | (5.1 | ) | 8.6 | (54.5 | ) | 7.3 | (47.2 | ) | ||||||||||||||||||||||||
| Global Preneed goodwill impairment | 2.2 | (2.2 | ) | — | 135.6 | (135.6 | ) | — | — | — | — | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||
| COVID-19 direct and incremental expenses | 4.2 | — | 4.2 | (0.3 | ) | — | (0.3 | ) | 15.2 | (0.2 | ) | 15.0 | 2.4 | (0.1 | ) | 2.3 | 21.5 | (0.3 | ) | 21.2 | — | — | — | |||||||||||||||||||||||||||||||
| CARES Act tax benefit | — | — | — | — | — | — | (5.1 | ) | — | (5.1 | ) | (79.3 | ) | — | (79.3 | ) | (84.4 | ) | — | (84.4 | ) | — | — | — | ||||||||||||||||||||||||||||||
| Assurant Health runoff operations | (12.2 | ) | — | (12.2 | ) | (0.4 | ) | — | (0.4 | ) | (0.2 | ) | — | (0.2 | ) | 0.1 | — | 0.1 | (12.7 | ) | — | (12.7 | ) | (22.1 | ) | — | (22.1 | ) | ||||||||||||||||||||||||||
| Net charge related to Iké | — | — | — | — | — | — | 3.5 | — | 3.5 | 5.8 | — | 5.8 | 9.3 | — | 9.3 | 163.9 | — | 163.9 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related costs | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 29.6 | — | 29.6 | ||||||||||||||||||||||||||||||||||||
| Net loss (income) attributable to non-controlling interests | 0.2 | — | 0.2 | 0.3 | — | 0.3 | (0.3 | ) | — | (0.3 | ) | (1.1 | ) | — | (1.1 | ) | (0.9 | ) | — | (0.9 | ) | (4.2 | ) | — | (4.2 | ) | ||||||||||||||||||||||||||||
| Other adjustments^(2)^ | 10.9 | 1.5 | 12.4 | (2.2 | ) | 2.2 | — | 1.3 | 2.1 | 3.4 | 8.0 | 1.6 | 9.6 | 18.0 | 7.4 | 25.4 | 52.2 | 12.4 | 64.6 | |||||||||||||||||||||||||||||||||||
| Corporate and Other net operating loss, as adjusted | $ | (22.9 | ) | $ | (3.7 | ) | $ | (26.6 | ) | $ | (23.5 | ) | $ | (2.2 | ) | $ | (25.7 | ) | $ | (26.9 | ) | $ | (1.9 | ) | $ | (28.8 | ) | $ | (19.5 | ) | $ | (2.3 | ) | $ | (21.8 | ) | $ | (92.8 | ) | $ | (10.1 | ) | $ | (102.9 | ) | $ | (85.6 | ) | $ | (8.5 | ) | $ | (94.1 | ) |
| (1) | See Footnote (7) in Regulation G - Non GAAP Financial Measures. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) | Refer to Footnote (1) in the Regulation G - Non GAAP Financial Measures for detail of what is included in<br>other adjustments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- |
Assurant, Inc. ****
Reconciliation of Segment Condensed Balance Sheets, As Adjusted (New Page) ****
(Unaudited) ****
| Impact of Discontinued Operations | Adjusted | ||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| As of December 31, 2020 | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||
| GlobalHousing | GlobalPreneed | TotalCorporateand Other^(1)^ | Consolidated | GlobalLifestyle | GlobalHousing | GlobalPreneed | TotalCorporateand Other^(1)^ | Consolidated | GlobalLifestyle | GlobalHousing | GlobalPreneed | TotalCorporateand Other^(1)^ | Consolidated | ||||||||||||||||||||||
| ( in millions) | |||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Investments and cash and cash equivalents | 6,725.4 | $ | 2,248.6 | $ | 6,076.8 | $ | 2,857.2 | $ | 17,908.0 | $ | — | $ | — | $ | (6,076.8 | ) | $ | (1,400.8 | ) | $ | (7,477.6 | ) | $ | 6,725.4 | $ | 2,248.6 | $ | — | $ | 1,456.4 | $ | 10,430.4 | |||
| Reinsurance recoverables(2) | 4,593.7 | 694.8 | 69.1 | 4,482.3 | 9,839.9 | — | — | (69.1 | ) | (3,165.4 | ) | (3,234.5 | ) | 4,593.7 | 694.8 | — | 1,316.9 | 6,605.4 | |||||||||||||||||
| Deferred acquisition costs | 7,236.0 | 152.2 | 1,283.0 | (1,097.7 | ) | 7,573.5 | — | — | (1,283.0 | ) | 1,097.5 | (185.5 | ) | 7,236.0 | 152.2 | — | (0.2 | ) | 7,388.0 | ||||||||||||||||
| Goodwill | 2,209.8 | 379.5 | — | — | 2,589.3 | — | — | — | — | — | 2,209.8 | 379.5 | — | — | 2,589.3 | ||||||||||||||||||||
| Value of business acquired | 1,152.2 | — | 4.3 | — | 1,156.5 | — | — | (4.3 | ) | — | (4.3 | ) | 1,152.2 | — | — | — | 1,152.2 | ||||||||||||||||||
| Assets held in separate accounts | — | — | 165.5 | 2,022.8 | 2,188.3 | — | — | (165.5 | ) | (2,011.3 | ) | (2,176.8 | ) | — | — | — | 11.5 | 11.5 | |||||||||||||||||
| Other assets | 2,443.7 | 539.2 | 28.3 | 383.2 | 3,394.4 | — | — | (28.3 | ) | (111.7 | ) | (140.0 | ) | 2,443.7 | 539.2 | — | 271.5 | 3,254.4 | |||||||||||||||||
| Assets of discontinued operations | — | — | — | — | — | — | — | — | 13,218.7 | 13,218.7 | — | — | — | 13,218.7 | 13,218.7 | ||||||||||||||||||||
| Total assets | 24,360.8 | $ | 4,014.3 | $ | 7,627.0 | $ | 8,647.8 | $ | 44,649.9 | $ | — | $ | — | $ | (7,627.0 | ) | $ | 7,627.0 | $ | — | $ | 24,360.8 | $ | 4,014.3 | $ | — | $ | 16,274.8 | $ | 44,649.9 | |||||
| Liabilities | |||||||||||||||||||||||||||||||||||
| Policyholder benefits and claims<br>payable(2) | 819.6 | $ | 651.9 | $ | 6,620.2 | $ | 4,629.8 | $ | 12,721.5 | $ | — | $ | — | $ | (6,620.2 | ) | $ | (3,132.5 | ) | $ | (9,752.7 | ) | $ | 819.6 | $ | 651.9 | $ | — | $ | 1,497.3 | $ | 2,968.8 | |||
| Unearned premiums | 15,818.0 | 1,467.4 | 566.4 | (543.8 | ) | 17,308.0 | — | — | (566.4 | ) | 551.5 | (14.9 | ) | 15,818.0 | 1,467.4 | — | 7.7 | 17,293.1 | |||||||||||||||||
| Debt | — | — | — | 2,252.9 | 2,252.9 | — | — | — | — | — | — | — | — | 2,252.9 | 2,252.9 | ||||||||||||||||||||
| Liabilities related to separate accounts | — | — | 165.5 | 2,022.8 | 2,188.3 | — | — | (165.5 | ) | (2011.3 | ) | (2176.8 | ) | — | — | — | 11.5 | 11.5 | |||||||||||||||||
| Accounts payable and other liabilities | 3,205.7 | 379.9 | (24.1 | ) | 662.9 | 4,224.4 | — | — | 24.1 | (191.0 | ) | (166.9 | ) | 3,205.7 | 379.9 | — | 471.9 | 4,057.5 | |||||||||||||||||
| Liabilities of discontinued operations | — | — | — | — | — | — | — | — | 12,111.3 | 12,111.3 | — | — | — | 12,111.3 | 12,111.3 | ||||||||||||||||||||
| Total liabilities | 19,843.3 | 2,499.2 | 7,328.0 | 9,024.6 | 38,695.1 | — | — | (7,328.0 | ) | 7,328.0 | — | 19,843.3 | 2,499.2 | — | 16,352.6 | 38,695.1 | |||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||||||||||||||
| Equity, excluding accumulated other comprehensive income | 4,517.5 | 1,515.1 | 299.0 | (1,090.0 | ) | 5,241.6 | — | — | (299.0 | ) | 299.0 | — | 4,517.5 | 1,515.1 | — | (791.0 | ) | 5,241.6 | |||||||||||||||||
| Accumulated other comprehensive income | — | — | — | 709.8 | 709.8 | — | — | — | — | — | — | — | — | 709.8 | 709.8 | ||||||||||||||||||||
| Total Assurant, Inc. stockholders’ equity | 4,517.5 | 1,515.1 | 299.0 | (380.2 | ) | 5,951.4 | — | — | (299.0 | ) | 299.0 | — | 4,517.5 | 1,515.1 | — | (81.2 | ) | 5,951.4 | |||||||||||||||||
| Non-controlling interest | — | — | — | 3.4 | 3.4 | — | — | — | — | — | — | — | — | 3.4 | 3.4 | ||||||||||||||||||||
| Total equity | 4,517.5 | 1,515.1 | 299.0 | (376.8 | ) | 5,954.8 | — | — | (299.0 | ) | 299.0 | — | 4,517.5 | 1,515.1 | — | (77.8 | ) | 5,954.8 | |||||||||||||||||
| Total liabilities and equity | 24,360.8 | $ | 4,014.3 | $ | 7,627.0 | $ | 8,647.8 | $ | 44,649.9 | $ | — | $ | — | $ | (7,627.0 | ) | $ | 7,627.0 | $ | — | $ | 24,360.8 | $ | 4,014.3 | $ | — | $ | 16,274.8 | $ | 44,649.9 |
All values are in US Dollars.
| (1) | Total Corporate and Other includes all accumulated other comprehensive income, reinsurance recoverables and<br>separate accounts related to the sale of businesses by reinsurance. Additionally, the Total Corporate and Other segment includes amounts related to the Assurant Health business, which is in runoff. |
|---|---|
| (2) | Global Housing’s reinsurance recoverables and policyholder benefits and claims payable as of<br>December 31, 2020 and December 31, 2019 include $96 million and $87 million, respectively, of balances ceded to the U.S. government. Assurant acts as an administrator for the U.S. government under the voluntary National Flood Insurance<br>Program. |
| --- | --- |
Regulation G – Non GAAP Financial Measures
Assurant uses the following non-GAAP financial measures to analyze the Company’s operating performance. Assurant’s non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assurant’s non-GAAP financial measures to those of other companies.
(1) Net Operating Income: Assurant uses net operating income as an important measure of the Company’s operating performance. Net operating income equals net income from continuing operations, excluding Global Preneed goodwill impairment, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), COVID-19 direct and incremental expenses, the CARES Act tax benefit, foreign exchange gains (losses) from remeasurement of monetary assets and liabilities, the net charge related to Iké, as well as other highly variable or unusual items other than reportable catastrophes. The Company believes net operating income provides investors with a valuable measure of the performance of the Company’s ongoing business because the excluded items do not represent the ongoing operations of the Company. The comparable GAAP measure is net income from continuing operations. In this financial supplement, net income from continuing operations refers to adjusted net income from continuing operations to reflect the reporting of Global Preneed and its related legal entities as discontinued operations beginning with first quarter 2021.
| ($ in millions) | 2020 | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | |||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) attributable to common stockholders | $ | 134.5 | $ | — | $ | 134.5 | $ | (34.9 | ) | $ | — | $ | (34.9 | ) | $ | 173.5 | $ | — | $ | 173.5 | $ | 150.0 | $ | — | $ | 150.0 | $ | 423.1 | $ | — | $ | 423.1 | $ | 363.9 | $ | — | $ | 363.9 | ||||||||||||||||
| Less: Net (income) loss from discontinued operations | — | (19.9 | ) | (19.9 | ) | — | 118.5 | 118.5 | — | (13.7 | ) | (13.7 | ) | — | (7.2 | ) | (7.2 | ) | — | 77.7 | 77.7 | — | (80.4 | ) | (80.4 | ) | ||||||||||||||||||||||||||||
| Add: Net (loss) income attributable to non-controlling interests | (0.2 | ) | — | (0.2 | ) | (0.3 | ) | — | (0.3 | ) | 0.3 | — | 0.3 | 1.1 | — | 1.1 | 0.9 | — | 0.9 | 4.2 | — | 4.2 | ||||||||||||||||||||||||||||||||
| Add: Preferred stock dividends | 4.7 | — | 4.7 | 4.7 | — | 4.7 | 4.6 | — | 4.6 | 4.7 | — | 4.7 | 18.7 | — | 18.7 | 18.7 | — | 18.7 | ||||||||||||||||||||||||||||||||||||
| GAAP net income from continuing operations | **** | 139.0 | **** | **** | (19.9 | ) | **** | 119.1 | **** | **** | (30.5 | ) | **** | 118.5 | **** | **** | 88.0 | **** | **** | 178.4 | **** | **** | (13.7 | ) | **** | 164.7 | **** | **** | 155.8 | **** | **** | (7.2 | ) | **** | 148.6 | **** | **** | 442.7 | **** | **** | 77.7 | **** | **** | 520.4 | **** | **** | 386.8 | **** | **** | (80.4 | ) | **** | 306.4 | **** |
| Adjustments, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized (gains) losses on<br>investments^(1)^ | (30.5 | ) | 8.1 | (22.4 | ) | (13.0 | ) | (0.5 | ) | (13.5 | ) | (18.9 | ) | (3.8 | ) | (22.7 | ) | 76.1 | (8.9 | ) | 67.2 | 13.7 | (5.1 | ) | 8.6 | (54.5 | ) | 7.3 | (47.2 | ) | ||||||||||||||||||||||||
| Global Preneed goodwill impairment | 2.2 | (2.2 | ) | — | 135.6 | (135.6 | ) | — | — | — | — | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||
| COVID-19 direct and incremental expenses | 4.2 | — | 4.2 | (0.3 | ) | — | (0.3 | ) | 15.2 | (0.2 | ) | 15.0 | 2.4 | (0.1 | ) | 2.3 | 21.5 | (0.3 | ) | 21.2 | — | — | — | |||||||||||||||||||||||||||||||
| CARES Act tax benefit | — | — | — | — | — | — | (5.1 | ) | — | (5.1 | ) | (79.3 | ) | — | (79.3 | ) | (84.4 | ) | — | (84.4 | ) | — | — | — | ||||||||||||||||||||||||||||||
| Assurant Health runoff operations^(2)^ | (12.2 | ) | — | (12.2 | ) | (0.4 | ) | — | (0.4 | ) | (0.2 | ) | — | (0.2 | ) | 0.1 | — | 0.1 | (12.7 | ) | — | (12.7 | ) | (22.1 | ) | — | (22.1 | ) | ||||||||||||||||||||||||||
| Net charge related to Iké^(3)^ | — | — | — | — | — | — | 3.5 | — | 3.5 | 5.8 | — | 5.8 | 9.3 | — | 9.3 | 163.9 | — | 163.9 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related<br>costs^(4)^ | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 29.6 | — | 29.6 | ||||||||||||||||||||||||||||||||||||
| Other Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | (1.6 | ) | 1.5 | (0.1 | ) | (1.7 | ) | 1.6 | (0.1 | ) | (1.9 | ) | 1.8 | (0.1 | ) | (3.3 | ) | 1.9 | (1.4 | ) | (8.5 | ) | 6.8 | (1.7 | ) | (11.3 | ) | 12.4 | 1.1 | |||||||||||||||||||||||||
| Acquisition integration expenses | 8.7 | — | 8.7 | 4.1 | — | 4.1 | 3.3 | — | 3.3 | 2.6 | — | 2.6 | 18.7 | — | 18.7 | 22.8 | — | 22.8 | ||||||||||||||||||||||||||||||||||||
| Foreign exchange related losses^(5)^ | 2.7 | — | 2.7 | 2.4 | — | 2.4 | 2.2 | — | 2.2 | 3.3 | (0.1 | ) | 3.2 | 10.6 | (0.1 | ) | 10.5 | 18.2 | — | 18.2 | ||||||||||||||||||||||||||||||||||
| Current expected credit losses for businesses in runoff | 0.1 | — | 0.1 | (0.1 | ) | — | (0.1 | ) | — | 0.3 | 0.3 | 2.7 | (0.2 | ) | 2.5 | 2.7 | 0.1 | 2.8 | — | — | — | |||||||||||||||||||||||||||||||||
| Gain related to benefit plan activity | (3.5 | ) | — | (3.5 | ) | (3.9 | ) | — | (3.9 | ) | (3.3 | ) | — | (3.3 | ) | (1.5 | ) | — | (1.5 | ) | (12.2 | ) | — | (12.2 | ) | (4.4 | ) | — | (4.4 | ) | ||||||||||||||||||||||||
| Net charge related to Green Tree Insurance Agency acquisition | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 12.2 | — | 12.2 | ||||||||||||||||||||||||||||||||||||
| Loss on sale of Mortgage Solutions | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 7.5 | — | 7.5 | ||||||||||||||||||||||||||||||||||||
| Loss on building held for sale | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 5.8 | — | 5.8 | ||||||||||||||||||||||||||||||||||||
| State tax for AEB sale | — | — | — | 2.9 | — | 2.9 | — | — | — | — | — | — | 2.9 | — | 2.9 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Net (gain) loss from deconsolidation of consolidated investment entities^(6)^ | — | — | — | (7.5 | ) | 0.6 | (6.9 | ) | 1.3 | — | 1.3 | — | — | — | (6.2 | ) | 0.6 | (5.6 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Impact of Tax Cuts and Jobs Act at enactment | (1.3 | ) | — | (1.3 | ) | — | — | — | — | — | — | — | — | — | (1.3 | ) | — | (1.3 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Change in fair value of derivative investment and other expenses related to merger and acquisition<br>activities | 5.8 | — | 5.8 | 1.6 | — | 1.6 | (0.3 | ) | — | (0.3 | ) | 4.2 | — | 4.2 | 11.3 | — | 11.3 | 1.4 | — | 1.4 | ||||||||||||||||||||||||||||||||||
| Net loss (income) attributable to non-controlling interests | 0.2 | — | 0.2 | 0.3 | — | 0.3 | (0.3 | ) | — | (0.3 | ) | (1.1 | ) | — | (1.1 | ) | (0.9 | ) | — | (0.9 | ) | (4.2 | ) | — | (4.2 | ) | ||||||||||||||||||||||||||||
| Preferred stock dividends | (4.7 | ) | — | (4.7 | ) | (4.7 | ) | — | (4.7 | ) | (4.6 | ) | — | (4.6 | ) | (4.7 | ) | — | (4.7 | ) | (18.7 | ) | — | (18.7 | ) | (18.7 | ) | — | (18.7 | ) | ||||||||||||||||||||||||
| Net operating income | $ | 109.1 | **** | $ | (12.5 | ) | $ | 96.6 | **** | $ | 84.8 | **** | $ | (15.4 | ) | $ | 69.4 | **** | $ | 169.3 | **** | $ | (15.6 | ) | $ | 153.7 | **** | $ | 163.1 | **** | $ | (14.6 | ) | $ | 148.5 | **** | $ | 526.3 | **** | $ | (58.1 | ) | $ | 468.2 | **** | $ | 533.0 | **** | $ | (60.7 | ) | $ | 472.3 | **** |
| Global Lifestyle | $ | 87.9 | $ | — | $ | 87.9 | $ | 106.6 | $ | — | $ | 106.6 | $ | 121.8 | $ | — | $ | 121.8 | $ | 120.9 | $ | — | $ | 120.9 | $ | 437.2 | $ | — | $ | 437.2 | $ | 409.3 | $ | — | $ | 409.3 | ||||||||||||||||||
| Global Housing | 61.1 | — | 61.1 | 13.1 | — | 13.1 | 85.4 | — | 85.4 | 74.2 | — | 74.2 | 233.8 | — | 233.8 | 258.7 | — | 258.7 | ||||||||||||||||||||||||||||||||||||
| Global Preneed | 8.8 | (8.8 | ) | — | 13.2 | (13.2 | ) | — | 13.7 | (13.7 | ) | — | 12.3 | (12.3 | ) | — | 48.0 | (48.0 | ) | — | 52.2 | (52.2 | ) | — | ||||||||||||||||||||||||||||||
| Corporate and Other | (22.9 | ) | (3.7 | ) | (26.6 | ) | (23.5 | ) | (2.2 | ) | (25.7 | ) | (26.9 | ) | (1.9 | ) | (28.8 | ) | (19.5 | ) | (2.3 | ) | (21.8 | ) | (92.8 | ) | (10.1 | ) | (102.9 | ) | (85.6 | ) | (8.5 | ) | (94.1 | ) | ||||||||||||||||||
| Interest expense | (21.1 | ) | — | (21.1 | ) | (19.9 | ) | — | (19.9 | ) | (20.1 | ) | — | (20.1 | ) | (20.1 | ) | — | (20.1 | ) | (81.2 | ) | — | (81.2 | ) | (82.9 | ) | — | (82.9 | ) | ||||||||||||||||||||||||
| Preferred stock dividends | (4.7 | ) | — | (4.7 | ) | (4.7 | ) | — | (4.7 | ) | (4.6 | ) | — | (4.6 | ) | (4.7 | ) | — | (4.7 | ) | (18.7 | ) | — | (18.7 | ) | (18.7 | ) | — | (18.7 | ) | ||||||||||||||||||||||||
| Net operating income | $ | 109.1 | **** | $ | (12.5 | ) | $ | 96.6 | **** | $ | 84.8 | **** | $ | (15.4 | ) | $ | 69.4 | **** | $ | 169.3 | **** | $ | (15.6 | ) | $ | 153.7 | **** | $ | 163.1 | **** | $ | (14.6 | ) | $ | 148.5 | **** | $ | 526.3 | **** | $ | (58.1 | ) | $ | 468.2 | **** | $ | 533.0 | **** | $ | (60.7 | ) | $ | 472.3 | **** |
| (1) | As reported, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$27.5 million pre-tax ($21.7 million after-tax), $16.5 million pre-tax ($13.0 million after-tax) and $36.4 million pre-tax ($28.8 million after-tax) and net unrealized losses of $96.4 million pre-tax ($76.1 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As reported, Twelve Months 2020 and Twelve Months 2019 included net unrealized losses of $16.0 million pre-tax ($12.6 million after-tax) and net unrealized gains<br>of $34.6 million pre-tax ($27.3 million after-tax), respectively, from changes in the fair value of our equity securities and our collateralized loan obligations. As adjusted, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$22.5 million pre-tax ($17.8 million after-tax), $12.7 million pre-tax ($10.0 million after-tax) and $30.6 million pre-tax ($24.2 million after-tax) and net unrealized losses of $83.1 million pre-tax ($65.6 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As adjusted, Twelve Months 2020 and Twelve Months 2019 included net gains (losses) of ($17.3) million pre-tax (($13.7) million after-tax) and $31.4 million<br>pre-tax ($24.8 million after-tax), respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (2) | 4Q 2020 and 4Q 2019 include $14.9 million pre-tax ($11.8 million after-tax) and $26.7 million pre-tax ($21.1<br>million after-tax), respectively, of income related to the reduction of the valuation allowance on the Company’s Patient Protection and Affordable Health Care Act of 2010 (“ACA”) risk corridor program receivables. The reductions in<br>the allowance related to the Company’s 4Q 2019 entry into an agreement to sell its right to any future claim proceeds related to the associated receivables and the 4Q 2020 final settlement of the receivables. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (3) | 2Q 2020 includes a loss of $3.9 million pre-tax ($2.9 million after-tax) on the sale of the Company’s<br>interests in Iké. Twelve Months 2019 included a $163.0 million pre-tax ($163.9 million after-tax) loss related to the Company’s interests in Iké following a decline in fair value and commitment to a plan to sell such interests (of<br>which $38.4 million related to cumulative foreign currency losses recorded in other comprehensive income). The pre-tax loss includes an increase in liability related to the Company’s obligation to acquire the remainder of Iké from the<br>majority shareholders of $84.7 million and an other-than-temporary impairment loss on the Company’s 40% ownership interest in Iké of $78.3 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (4) | In connection with the debt offering, tender offer and debt redemption in 3Q 2019, the Company recorded a $31.4<br>million pre-tax loss on extinguishment of debt; $3.0 million pre-tax amortization of premium for derivative transactions purchased in anticipation of the debt issuance, which were ultimately not exercised (included in interest expense); $2.6 million<br>pre-tax loss on the termination of the interest rate swap and related derivative transactions associated with the portion of floating rate senior notes due March 2021 that were redeemed (included in interest expense); and $0.4 million pre-tax of<br>expenses related to the debt redemption (included in underwriting, general and administrative expenses). Total loss on extinguishment of debt and other related costs was $37.4 million pre-tax ($29.6 million after-tax). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (5) | 4Q 2020, 3Q 2020, 2Q 2020, 1Q 2020, included $(2.2) million, $(1.3) million, $(2.0) million, $(2.0) million of<br>net losses, respectively, from foreign exchange related to the remeasurement of net monetary assets in Argentina as a result of the classification of Argentina’s economy as highly inflationary beginning July 1, 2018. Twelve Months 2020 and<br>Twelve Months 2019 included net losses of $7.5 million and $18.2 million, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (6) | As reported, 3Q 2020 included (1) a net gain of $18.3 million pre-tax ($14.5<br>million after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million<br>pre-tax ($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As reported, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million<br>after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 4Q 2020 included (1) a net gain of $0.7 million pre-tax ($0.6 million after-tax) from the sale of our CLO asset management platform and<br>(2) additional exit related expenses of $0.8 million pre-tax ($0.6 million after-tax) associated with the sale of the CLO asset management platform. As adjusted, 3Q 2020 included (1) a net gain of $17.6 million pre-tax ($13.9 million<br>after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million pre-tax<br>($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million after-tax) of<br>expenses related to the outsourcing of our real estate management. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- |
Regulation G – Non GAAP Financial Measures
(1 - Continued) Net Operating Income: Assurant uses net operating income as an important measure of the Company’s operating performance. Net operating income equals net income from continuing operations, excluding Global Preneed goodwill impairment, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), COVID-19 direct and incremental expenses, the CARES Act tax benefit, foreign exchange gains (losses) from remeasurement of monetary assets and liabilities, the net charge related to Iké, as well as other highly variable or unusual items other than reportable catastrophes. The Company believes net operating income provides investors with a valuable measure of the performance of the Company’s ongoing business because the excluded items do not represent the ongoing operations of the Company. The comparable GAAP measure is net income from continuing operations. In this financial supplement, net income from continuing operations refers to adjusted net income from continuing operations to reflect the reporting of Global Preneed and its related legal entities as discontinued operations beginning with first quarter 2021.
| 2020 | Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | |||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) attributable to common stockholders | $ | 134.5 | $ | — | $ | 134.5 | $ | (34.9 | ) | $ | — | $ | (34.9 | ) | $ | 173.5 | $ | — | $ | 173.5 | $ | 150.0 | $ | — | $ | 150.0 | $ | 423.1 | $ | — | $ | 423.1 | $ | 363.9 | $ | — | $ | 363.9 | ||||||||||||||||
| Less: Net (income) loss from discontinued operations | — | (19.9 | ) | (19.9 | ) | — | 118.5 | 118.5 | — | (13.7 | ) | (13.7 | ) | — | (7.2 | ) | (7.2 | ) | — | 77.7 | 77.7 | — | (80.4 | ) | (80.4 | ) | ||||||||||||||||||||||||||||
| Add: Net (loss) income attributable to non-controlling interests | (0.2 | ) | — | (0.2 | ) | (0.3 | ) | — | (0.3 | ) | 0.3 | — | 0.3 | 1.1 | — | 1.1 | 0.9 | — | 0.9 | 4.2 | — | 4.2 | ||||||||||||||||||||||||||||||||
| Add: Preferred stock dividends | 4.7 | — | 4.7 | 4.7 | — | 4.7 | 4.6 | — | 4.6 | 4.7 | — | 4.7 | 18.7 | — | 18.7 | 18.7 | — | 18.7 | ||||||||||||||||||||||||||||||||||||
| GAAP net income from continuing operations | **** | 139.0 | **** | **** | (19.9 | ) | **** | 119.1 | **** | **** | (30.5 | ) | **** | 118.5 | **** | **** | 88.0 | **** | **** | 178.4 | **** | **** | (13.7 | ) | **** | 164.7 | **** | **** | 155.8 | **** | **** | (7.2 | ) | **** | 148.6 | **** | **** | 442.7 | **** | **** | 77.7 | **** | **** | 520.4 | **** | **** | 386.8 | **** | **** | (80.4 | ) | **** | 306.4 | **** |
| Adjustments, pre-tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized (gains) losses on<br>investments^(1)^ | (38.3 | ) | 8.7 | (29.6 | ) | (16.5 | ) | (0.6 | ) | (17.1 | ) | (24.1 | ) | (4.8 | ) | (28.9 | ) | 96.3 | (11.3 | ) | 85.0 | 17.4 | (8.0 | ) | 9.4 | (66.3 | ) | 9.3 | (57.0 | ) | ||||||||||||||||||||||||
| Global Preneed goodwill impairment | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| COVID-19 direct and incremental expenses | 5.3 | — | 5.3 | (0.4 | ) | — | (0.4 | ) | 19.2 | (0.3 | ) | 18.9 | 3.1 | (0.1 | ) | 3.0 | 27.2 | (0.4 | ) | 26.8 | — | — | — | |||||||||||||||||||||||||||||||
| CARES Act tax benefit (after-tax) | — | — | — | — | — | — | (5.1 | ) | — | (5.1 | ) | (79.3 | ) | — | (79.3 | ) | (84.4 | ) | — | (84.4 | ) | — | — | — | ||||||||||||||||||||||||||||||
| Assurant Health runoff operations^(2)^ | (15.5 | ) | — | (15.5 | ) | (0.5 | ) | — | (0.5 | ) | (0.2 | ) | — | (0.2 | ) | 0.1 | — | 0.1 | (16.1 | ) | — | (16.1 | ) | (28.0 | ) | — | (28.0 | ) | ||||||||||||||||||||||||||
| Net charge related to Iké^(3)^ | — | — | — | — | — | — | 4.5 | — | 4.5 | 1.4 | — | 1.4 | 5.9 | — | 5.9 | 163.0 | — | 163.0 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related<br>costs^(4)^ | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 37.4 | — | 37.4 | ||||||||||||||||||||||||||||||||||||
| Other Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | (2.0 | ) | 1.9 | (0.1 | ) | (2.1 | ) | 2.0 | (0.1 | ) | (2.4 | ) | 2.3 | (0.1 | ) | (4.2 | ) | 2.4 | (1.8 | ) | (10.7 | ) | 8.6 | (2.1 | ) | (14.3 | ) | 15.7 | 1.4 | |||||||||||||||||||||||||
| Acquisition integration expenses | 9.6 | — | 9.6 | 5.2 | — | 5.2 | 4.0 | — | 4.0 | 3.3 | — | 3.3 | 22.1 | — | 22.1 | 28.1 | — | 28.1 | ||||||||||||||||||||||||||||||||||||
| Foreign exchange related losses^(5)^ | 2.9 | — | 2.9 | 2.7 | — | 2.7 | 2.4 | — | 2.4 | 3.7 | (0.2 | ) | 3.5 | 11.7 | (0.2 | ) | 11.5 | 18.2 | — | 18.2 | ||||||||||||||||||||||||||||||||||
| Current expected credit losses for businesses in runoff | 0.1 | — | 0.1 | (0.2 | ) | — | (0.2 | ) | — | 0.3 | 0.3 | 3.4 | (0.3 | ) | 3.1 | 3.3 | — | 3.3 | — | — | — | |||||||||||||||||||||||||||||||||
| Gain related to benefit plan activity | (4.5 | ) | — | (4.5 | ) | (4.9 | ) | — | (4.9 | ) | (4.3 | ) | — | (4.3 | ) | (1.9 | ) | — | (1.9 | ) | (15.6 | ) | — | (15.6 | ) | (5.6 | ) | — | (5.6 | ) | ||||||||||||||||||||||||
| Net charge related to Green Tree Insurance Agency acquisition | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 15.6 | — | 15.6 | ||||||||||||||||||||||||||||||||||||
| Loss on sale of Mortgage Solutions | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 9.6 | — | 9.6 | ||||||||||||||||||||||||||||||||||||
| Loss on building held for sale | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 7.3 | — | 7.3 | ||||||||||||||||||||||||||||||||||||
| State tax for AEB sale (after-tax) | — | — | — | 2.9 | — | 2.9 | — | — | — | — | — | — | 2.9 | — | 2.9 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Net loss (gain) from deconsolidation of consolidated investment entities^(6)^ | — | 0.1 | 0.1 | (9.4 | ) | 0.7 | (8.7 | ) | 1.6 | — | 1.6 | — | — | — | (7.8 | ) | 0.8 | (7.0 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Impact of Tax Cuts and Jobs Act at enactment (after-tax) | (1.3 | ) | — | (1.3 | ) | — | — | — | — | — | — | — | — | — | (1.3 | ) | — | (1.3 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Change in fair value of derivative investment and other expenses related to merger and acquisition<br>activities | 7.5 | — | 7.5 | 2.2 | — | 2.2 | (0.6 | ) | — | (0.6 | ) | 5.2 | — | 5.2 | 14.3 | — | 14.3 | 1.8 | — | 1.8 | ||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 10.8 | (3.3 | ) | 7.5 | 2.9 | 1.8 | 4.7 | 0.8 | 0.6 | 1.4 | (18.0 | ) | 2.1 | (15.9 | ) | (3.5 | ) | 1.2 | (2.3 | ) | 2.3 | (5.3 | ) | (3.0 | ) | |||||||||||||||||||||||||||||
| Total adjustments, after-tax | (25.4 | ) | 7.4 | (18.0 | ) | 119.7 | (133.9 | ) | (14.2 | ) | (4.2 | ) | (1.9 | ) | (6.1 | ) | 13.1 | (7.4 | ) | 5.7 | 103.2 | (135.8 | ) | (32.6 | ) | 169.1 | 19.7 | 188.8 | ||||||||||||||||||||||||||
| Net loss (income) attributable to non-controlling interests | 0.2 | — | 0.2 | 0.3 | — | 0.3 | (0.3 | ) | — | (0.3 | ) | (1.1 | ) | — | (1.1 | ) | (0.9 | ) | — | (0.9 | ) | (4.2 | ) | — | (4.2 | ) | ||||||||||||||||||||||||||||
| Preferred stock dividends | (4.7 | ) | — | (4.7 | ) | (4.7 | ) | — | (4.7 | ) | (4.6 | ) | — | (4.6 | ) | (4.7 | ) | — | (4.7 | ) | (18.7 | ) | — | (18.7 | ) | (18.7 | ) | — | (18.7 | ) | ||||||||||||||||||||||||
| Net operating income | $ | 109.1 | **** | $ | (12.5 | ) | $ | 96.6 | **** | $ | 84.8 | **** | $ | (15.4 | ) | $ | 69.4 | **** | $ | 169.3 | **** | $ | (15.6 | ) | $ | 153.7 | **** | $ | 163.1 | **** | $ | (14.6 | ) | $ | 148.5 | **** | $ | 526.3 | **** | $ | (58.1 | ) | $ | 468.2 | **** | $ | 533.0 | **** | $ | (60.7 | ) | $ | 472.3 | **** |
| Global Lifestyle | $ | 87.9 | $ | — | $ | 87.9 | $ | 106.6 | $ | — | $ | 106.6 | $ | 121.8 | $ | — | $ | 121.8 | $ | 120.9 | $ | — | $ | 120.9 | $ | 437.2 | $ | — | $ | 437.2 | $ | 409.3 | $ | — | $ | 409.3 | ||||||||||||||||||
| Global Housing | 61.1 | — | 61.1 | 13.1 | — | 13.1 | 85.4 | — | 85.4 | 74.2 | — | 74.2 | 233.8 | — | 233.8 | 258.7 | — | 258.7 | ||||||||||||||||||||||||||||||||||||
| Global Preneed | 8.8 | (8.8 | ) | — | 13.2 | (13.2 | ) | — | 13.7 | (13.7 | ) | — | 12.3 | (12.3 | ) | — | 48.0 | (48.0 | ) | — | 52.2 | (52.2 | ) | — | ||||||||||||||||||||||||||||||
| Corporate and Other | (22.9 | ) | (3.7 | ) | (26.6 | ) | (23.5 | ) | (2.2 | ) | (25.7 | ) | (26.9 | ) | (1.9 | ) | (28.8 | ) | (19.5 | ) | (2.3 | ) | (21.8 | ) | (92.8 | ) | (10.1 | ) | (102.9 | ) | (85.6 | ) | (8.5 | ) | (94.1 | ) | ||||||||||||||||||
| Interest expense | (21.1 | ) | — | (21.1 | ) | (19.9 | ) | — | (19.9 | ) | (20.1 | ) | — | (20.1 | ) | (20.1 | ) | — | (20.1 | ) | (81.2 | ) | — | (81.2 | ) | (82.9 | ) | — | (82.9 | ) | ||||||||||||||||||||||||
| Preferred stock dividends | (4.7 | ) | — | (4.7 | ) | (4.7 | ) | — | (4.7 | ) | (4.6 | ) | — | (4.6 | ) | (4.7 | ) | — | (4.7 | ) | (18.7 | ) | — | (18.7 | ) | (18.7 | ) | — | (18.7 | ) | ||||||||||||||||||||||||
| Net operating income | $ | 109.1 | **** | $ | (12.5 | ) | $ | 96.6 | **** | $ | 84.8 | **** | $ | (15.4 | ) | $ | 69.4 | **** | $ | 169.3 | **** | $ | (15.6 | ) | $ | 153.7 | **** | $ | 163.1 | **** | $ | (14.6 | ) | $ | 148.5 | **** | $ | 526.3 | **** | $ | (58.1 | ) | $ | 468.2 | **** | $ | 533.0 | **** | $ | (60.7 | ) | $ | 472.3 | **** |
| (1) | As reported, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$27.5 million pre-tax ($21.7 million after-tax), $16.5 million pre-tax ($13.0 million after-tax) and $36.4 million pre-tax ($28.8 million after-tax) and net unrealized losses of $96.4 million pre-tax ($76.1 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As reported, Twelve Months 2020 and Twelve Months 2019 included net unrealized losses of $16.0 million pre-tax ($12.6 million after-tax) and net unrealized gains<br>of $34.6 million pre-tax ($27.3 million after-tax), respectively, from changes in the fair value of our equity securities and our collateralized loan obligations. As adjusted, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$22.5 million pre-tax ($17.8 million after-tax), $12.7 million pre-tax ($10.0 million after-tax) and $30.6 million pre-tax ($24.2 million after-tax) and net unrealized losses of $83.1 million pre-tax ($65.6 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As adjusted, Twelve Months 2020 and Twelve Months 2019 included net gains (losses) of ($17.3) million pre-tax (($13.7) million after-tax) and $31.4 million<br>pre-tax ($24.8 million after-tax), respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (2) | 4Q 2020 and 4Q 2019 include $14.9 million pre-tax ($11.8 million after-tax) and $26.7 million pre-tax ($21.1<br>million after-tax), respectively, of income related to the reduction of the valuation allowance on the Company’s Patient Protection and Affordable Health Care Act of 2010 (“ACA”) risk corridor program receivables. The reductions in<br>the allowance related to the Company’s 4Q 2019 entry into an agreement to sell its right to any future claim proceeds related to the associated receivables and the 4Q 2020 final settlement of the receivables. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (3) | 2Q 2020 includes a loss of $3.9 million pre-tax ($2.9 million after-tax) on the sale of the Company’s<br>interests in Iké. Twelve Months 2019 included a $163.0 million pre-tax ($163.9 million after-tax) loss related to the Company’s interests in Iké following a decline in fair value and commitment to a plan to sell such interests (of<br>which $38.4 million related to cumulative foreign currency losses recorded in other comprehensive income). The pre-tax loss includes an increase in liability related to the Company’s obligation to acquire the remainder of Iké from the<br>majority shareholders of $84.7 million and an other-than-temporary impairment loss on the Company’s 40% ownership interest in Iké of $78.3 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (4) | In connection with the debt offering, tender offer and debt redemption in 3Q 2019, the Company recorded a $31.4<br>million pre-tax loss on extinguishment of debt; $3.0 million pre-tax amortization of premium for derivative transactions purchased in anticipation of the debt issuance, which were ultimately not exercised (included in interest expense); $2.6 million<br>pre-tax loss on the termination of the interest rate swap and related derivative transactions associated with the portion of floating rate senior notes due March 2021 that were redeemed (included in interest expense); and $0.4 million pre-tax of<br>expenses related to the debt redemption (included in underwriting, general and administrative expenses). Total loss on extinguishment of debt and other related costs was $37.4 million pre-tax ($29.6 million after-tax). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (5) | 4Q 2020, 3Q 2020, 2Q 2020, 1Q 2020, included $(2.2) million, $(1.3) million, $(2.0) million, $(2.0) million of<br>net losses, respectively, from foreign exchange related to the remeasurement of net monetary assets in Argentina as a result of the classification of Argentina’s economy as highly inflationary beginning July 1, 2018. Twelve Months 2020 and<br>Twelve Months 2019 included net losses of $7.5 million and $18.2 million, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (6) | As reported, 3Q 2020 included (1) a net gain of $18.3 million pre-tax ($14.5<br>million after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million<br>pre-tax ($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As reported, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million<br>after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 4Q 2020 included (1) a net gain of $0.7 million pre-tax ($0.6 million after-tax) from the sale of our CLO asset management platform and<br>(2) additional exit related expenses of $0.8 million pre-tax ($0.6 million after-tax) associated with the sale of the CLO asset management platform. As adjusted, 3Q 2020 included (1) a net gain of $17.6 million pre-tax ($13.9 million<br>after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million pre-tax<br>($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million after-tax) of<br>expenses related to the outsourcing of our real estate management. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- |
Regulation G – Non GAAP Financial Measures
(2) Net Operating Income, Excluding Reportable Catastrophes: Assurant uses net operating income (defined above), excluding reportable catastrophes (which represents catastrophe losses net of reinsurance and client profit sharing adjustments and including reinstatement and other premiums), as another important measure of the Company’s operating performance. The Company believes this metric provides investors with a valuable measure of the performance of the Company’s ongoing business because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income from continuing operations. In this financial supplement, net income from continuing operations refers to adjusted net income from continuing operations to reflect the reporting of Global Preneed and its related legal entities as discontinued operations beginning with first quarter 2021.
| ($ in millions) | 2020 | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | |||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) attributable to common stockholders | $ | 134.5 | $ | — | $ | 134.5 | $ | (34.9 | ) | $ | — | $ | (34.9 | ) | $ | 173.5 | $ | — | $ | 173.5 | $ | 150.0 | $ | — | $ | 150.0 | $ | 423.1 | $ | — | $ | 423.1 | $ | 363.9 | $ | — | $ | 363.9 | ||||||||||||||||
| Less: Net (income) loss from discontinued operations | — | (19.9 | ) | (19.9 | ) | — | 118.5 | 118.5 | — | (13.7 | ) | (13.7 | ) | — | (7.2 | ) | (7.2 | ) | — | 77.7 | 77.7 | — | (80.4 | ) | (80.4 | ) | ||||||||||||||||||||||||||||
| Add: Net (loss) income attributable to non-controlling interests | (0.2 | ) | — | (0.2 | ) | (0.3 | ) | — | (0.3 | ) | 0.3 | — | 0.3 | 1.1 | — | 1.1 | 0.9 | — | 0.9 | 4.2 | — | 4.2 | ||||||||||||||||||||||||||||||||
| Add: Preferred stock dividends | 4.7 | — | 4.7 | 4.7 | — | 4.7 | 4.6 | — | 4.6 | 4.7 | — | 4.7 | 18.7 | — | 18.7 | 18.7 | — | 18.7 | ||||||||||||||||||||||||||||||||||||
| GAAP net income from continuing operations | **** | 139.0 | **** | **** | (19.9 | ) | **** | 119.1 | **** | **** | (30.5 | ) | **** | 118.5 | **** | **** | 88.0 | **** | **** | 178.4 | **** | **** | (13.7 | ) | **** | 164.7 | **** | **** | 155.8 | **** | **** | (7.2 | ) | **** | 148.6 | **** | **** | 442.7 | **** | **** | 77.7 | **** | **** | 520.4 | **** | **** | 386.8 | **** | **** | (80.4 | ) | **** | 306.4 | **** |
| Adjustments, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized (gains) losses on<br>investments^(1)^ | (30.5 | ) | 8.1 | (22.4 | ) | (13.0 | ) | (0.5 | ) | (13.5 | ) | (18.9 | ) | (3.8 | ) | (22.7 | ) | 76.1 | (8.9 | ) | 67.2 | 13.7 | (5.1 | ) | 8.6 | (54.5 | ) | 7.3 | (47.2 | ) | ||||||||||||||||||||||||
| Global Preneed goodwill impairment | 2.2 | (2.2 | ) | — | 135.6 | (135.6 | ) | — | — | — | — | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||
| Reportable catastrophes | 27.3 | — | 27.3 | 87.0 | — | 87.0 | 10.0 | — | 10.0 | 12.9 | — | 12.9 | 137.2 | — | 137.2 | 41.0 | — | 41.0 | ||||||||||||||||||||||||||||||||||||
| COVID-19 direct and incremental expenses | 4.2 | — | 4.2 | (0.3 | ) | — | (0.3 | ) | 15.2 | (0.2 | ) | 15.0 | 2.4 | (0.1 | ) | 2.3 | 21.5 | (0.3 | ) | 21.2 | — | — | — | |||||||||||||||||||||||||||||||
| CARES Act tax benefit | — | — | — | — | — | — | (5.1 | ) | — | (5.1 | ) | (79.3 | ) | — | (79.3 | ) | (84.4 | ) | — | (84.4 | ) | — | — | — | ||||||||||||||||||||||||||||||
| Assurant Health runoff operations^(2)^ | (12.2 | ) | — | (12.2 | ) | (0.4 | ) | — | (0.4 | ) | (0.2 | ) | — | (0.2 | ) | 0.1 | — | 0.1 | (12.7 | ) | — | (12.7 | ) | (22.1 | ) | — | (22.1 | ) | ||||||||||||||||||||||||||
| Net charge related to Iké^(3)^ | — | — | — | — | — | — | 3.5 | — | 3.5 | 5.8 | — | 5.8 | 9.3 | — | 9.3 | 163.9 | — | 163.9 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related<br>costs^(4)^ | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 29.6 | — | 29.6 | ||||||||||||||||||||||||||||||||||||
| Other Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | (1.6 | ) | 1.5 | (0.1 | ) | (1.7 | ) | 1.6 | (0.1 | ) | (1.9 | ) | 1.8 | (0.1 | ) | (3.3 | ) | 1.9 | (1.4 | ) | (8.5 | ) | 6.8 | (1.7 | ) | (11.3 | ) | 12.4 | 1.1 | |||||||||||||||||||||||||
| Acquisition integration expenses | 8.7 | — | 8.7 | 4.1 | — | 4.1 | 3.3 | — | 3.3 | 2.6 | — | 2.6 | 18.7 | — | 18.7 | 22.8 | — | 22.8 | ||||||||||||||||||||||||||||||||||||
| Foreign exchange related losses^(5)^ | 2.7 | — | 2.7 | 2.4 | — | 2.4 | 2.2 | — | 2.2 | 3.3 | (0.1 | ) | 3.2 | 10.6 | (0.1 | ) | 10.5 | 18.2 | — | 18.2 | ||||||||||||||||||||||||||||||||||
| Current expected credit losses for businesses in runoff | 0.1 | — | 0.1 | (0.1 | ) | — | (0.1 | ) | — | 0.3 | 0.3 | 2.7 | (0.2 | ) | 2.5 | 2.7 | 0.1 | 2.8 | — | — | — | |||||||||||||||||||||||||||||||||
| Gain related to benefit plan activity | (3.5 | ) | — | (3.5 | ) | (3.9 | ) | — | (3.9 | ) | (3.3 | ) | — | (3.3 | ) | (1.5 | ) | — | (1.5 | ) | (12.2 | ) | — | (12.2 | ) | (4.4 | ) | — | (4.4 | ) | ||||||||||||||||||||||||
| Net charge related to Green Tree Insurance Agency acquisition | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 12.2 | — | 12.2 | ||||||||||||||||||||||||||||||||||||
| Loss on sale of Mortgage Solutions | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 7.5 | — | 7.5 | ||||||||||||||||||||||||||||||||||||
| Loss on building held for sale | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 5.8 | — | 5.8 | ||||||||||||||||||||||||||||||||||||
| State tax for AEB sale | — | — | — | 2.9 | — | 2.9 | — | — | — | — | — | — | 2.9 | — | 2.9 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Net (gain) loss from deconsolidation of consolidated investment entities^(6)^ | — | — | — | (7.5 | ) | 0.6 | (6.9 | ) | 1.3 | — | 1.3 | — | — | — | (6.2 | ) | 0.6 | (5.6 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Impact of Tax Cuts and Jobs Act at enactment | (1.3 | ) | — | (1.3 | ) | — | — | — | — | — | — | — | — | — | (1.3 | ) | — | (1.3 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Change in fair value of derivative investment and other expenses related to merger and acquisition<br>activities | 5.8 | — | 5.8 | 1.6 | — | 1.6 | (0.3 | ) | — | (0.3 | ) | 4.2 | — | 4.2 | 11.3 | — | 11.3 | 1.4 | — | 1.4 | ||||||||||||||||||||||||||||||||||
| Net loss (income) attributable to non-controlling interests | 0.2 | — | 0.2 | 0.3 | — | 0.3 | (0.3 | ) | — | (0.3 | ) | (1.1 | ) | — | (1.1 | ) | (0.9 | ) | — | (0.9 | ) | (4.2 | ) | — | (4.2 | ) | ||||||||||||||||||||||||||||
| Preferred stock dividends | (4.7 | ) | — | (4.7 | ) | (4.7 | ) | — | (4.7 | ) | (4.6 | ) | — | (4.6 | ) | (4.7 | ) | — | (4.7 | ) | (18.7 | ) | — | (18.7 | ) | (18.7 | ) | — | (18.7 | ) | ||||||||||||||||||||||||
| Net operating income, excluding reportable catastrophes | $ | 136.4 | **** | $ | (12.5 | ) | $ | 123.9 | **** | $ | 171.8 | **** | $ | (15.4 | ) | $ | 156.4 | **** | $ | 179.3 | **** | $ | (15.6 | ) | $ | 163.7 | **** | $ | 176.0 | **** | $ | (14.6 | ) | $ | 161.4 | **** | $ | 663.5 | **** | $ | (58.1 | ) | $ | 605.4 | **** | $ | 574.0 | **** | $ | (60.7 | ) | $ | 513.3 | **** |
| Global Lifestyle^(7)^ | $ | 87.9 | $ | — | $ | 87.9 | $ | 106.6 | $ | — | $ | 106.6 | $ | 121.7 | $ | — | $ | 121.7 | $ | 121.0 | $ | — | $ | 121.0 | $ | 437.2 | $ | — | $ | 437.2 | $ | 409.4 | $ | — | $ | 409.4 | ||||||||||||||||||
| Global Housing, excluding reportable catastrophes | 88.4 | — | 88.4 | 100.1 | — | 100.1 | 95.5 | — | 95.5 | 87.0 | — | 87.0 | 371.0 | — | 371.0 | 299.6 | — | 299.6 | ||||||||||||||||||||||||||||||||||||
| Global Preneed | 8.8 | (8.8 | ) | — | 13.2 | (13.2 | ) | — | 13.7 | (13.7 | ) | — | 12.3 | (12.3 | ) | — | 48.0 | (48.0 | ) | — | 52.2 | (52.2 | ) | — | ||||||||||||||||||||||||||||||
| Corporate and Other | (22.9 | ) | (3.7 | ) | (26.6 | ) | (23.5 | ) | (2.2 | ) | (25.7 | ) | (26.9 | ) | (1.9 | ) | (28.8 | ) | (19.5 | ) | (2.3 | ) | (21.8 | ) | (92.8 | ) | (10.1 | ) | (102.9 | ) | (85.6 | ) | (8.5 | ) | (94.1 | ) | ||||||||||||||||||
| Interest expense | (21.1 | ) | — | (21.1 | ) | (19.9 | ) | — | (19.9 | ) | (20.1 | ) | — | (20.1 | ) | (20.1 | ) | — | (20.1 | ) | (81.2 | ) | — | (81.2 | ) | (82.9 | ) | — | (82.9 | ) | ||||||||||||||||||||||||
| Preferred stock dividends | (4.7 | ) | — | (4.7 | ) | (4.7 | ) | — | (4.7 | ) | (4.6 | ) | — | (4.6 | ) | (4.7 | ) | — | (4.7 | ) | (18.7 | ) | — | (18.7 | ) | (18.7 | ) | — | (18.7 | ) | ||||||||||||||||||||||||
| Net operating income, excluding reportable catastrophes | $ | 136.4 | **** | $ | (12.5 | ) | $ | 123.9 | **** | $ | 171.8 | **** | $ | (15.4 | ) | $ | 156.4 | **** | $ | 179.3 | **** | $ | (15.6 | ) | $ | 163.7 | **** | $ | 176.0 | **** | $ | (14.6 | ) | $ | 161.4 | **** | $ | 663.5 | **** | $ | (58.1 | ) | $ | 605.4 | **** | $ | 574.0 | **** | $ | (60.7 | ) | $ | 513.3 | **** |
| (1) | As reported, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$27.5 million pre-tax ($21.7 million after-tax), $16.5 million pre-tax ($13.0 million after-tax) and $36.4 million pre-tax ($28.8 million after-tax) and net unrealized losses of $96.4 million pre-tax ($76.1 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As reported, Twelve Months 2020 and Twelve Months 2019 included net unrealized losses of $16.0 million pre-tax ($12.6 million after-tax) and net unrealized gains<br>of $34.6 million pre-tax ($27.3 million after-tax), respectively, from changes in the fair value of our equity securities and our collateralized loan obligations. As adjusted, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$22.5 million pre-tax ($17.8 million after-tax), $12.7 million pre-tax ($10.0 million after-tax) and $30.6 million pre-tax ($24.2 million after-tax) and net unrealized losses of $83.1 million pre-tax ($65.6 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As adjusted, Twelve Months 2020 and Twelve Months 2019 included net gains (losses) of ($17.3) million pre-tax (($13.7) million after-tax) and $31.4 million<br>pre-tax ($24.8 million after-tax), respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (2) | 4Q 2020 and 4Q 2019 include $14.9 million pre-tax ($11.8 million after-tax) and $26.7 million pre-tax ($21.1<br>million after-tax), respectively, of income related to the reduction of the valuation allowance on the Company’s Patient Protection and Affordable Health Care Act of 2010 (“ACA”) risk corridor program receivables. The reductions in<br>the allowance related to the Company’s 4Q 2019 entry into an agreement to sell its right to any future claim proceeds related to the associated receivables and the 4Q 2020 final settlement of the receivables. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (3) | 2Q 2020 includes a loss of $3.9 million pre-tax ($2.9 million after-tax) on the sale of the Company’s<br>interests in Iké. Twelve Months 2019 included a $163.0 million pre-tax ($163.9 million after-tax) loss related to the Company’s interests in Iké following a decline in fair value and commitment to a plan to sell such interests (of<br>which $38.4 million related to cumulative foreign currency losses recorded in other comprehensive income). The pre-tax loss includes an increase in liability related to the Company’s obligation to acquire the remainder of Iké from the<br>majority shareholders of $84.7 million and an other-than-temporary impairment loss on the Company’s 40% ownership interest in Iké of $78.3 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (4) | In connection with the debt offering, tender offer and debt redemption in 3Q 2019, the Company recorded a $31.4<br>million pre-tax loss on extinguishment of debt; $3.0 million pre-tax amortization of premium for derivative transactions purchased in anticipation of the debt issuance, which were ultimately not exercised (included in interest expense); $2.6 million<br>pre-tax loss on the termination of the interest rate swap and related derivative transactions associated with the portion of floating rate senior notes due March 2021 that were redeemed (included in interest expense); and $0.4 million pre-tax of<br>expenses related to the debt redemption (included in underwriting, general and administrative expenses). Total loss on extinguishment of debt and other related costs was $37.4 million pre-tax ($29.6 million after-tax). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (5) | 4Q 2020, 3Q 2020, 2Q 2020, 1Q 2020, included $(2.2) million, $(1.3) million, $(2.0) million, $(2.0) million of<br>net losses, respectively, from foreign exchange related to the remeasurement of net monetary assets in Argentina as a result of the classification of Argentina’s economy as highly inflationary beginning July 1, 2018. Twelve Months 2020 and<br>Twelve Months 2019 included net losses of $7.5 million and $18.2 million, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (6) | As reported, 3Q 2020 included (1) a net gain of $18.3 million pre-tax ($14.5<br>million after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million<br>pre-tax ($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As reported, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million<br>after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 4Q 2020 included (1) a net gain of $0.7 million pre-tax ($0.6 million after-tax) from the sale of our CLO asset management platform and<br>(2) additional exit related expenses of $0.8 million pre-tax ($0.6 million after-tax) associated with the sale of the CLO asset management platform. As adjusted, 3Q 2020 included (1) a net gain of $17.6 million pre-tax ($13.9 million<br>after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million pre-tax<br>($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million after-tax) of<br>expenses related to the outsourcing of our real estate management. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (7) | 2Q 2020 and Twelve Months 2019 exclude benefits of $0.2 million pre-tax ($0.1 million after-tax) and $0.1<br>million pre-tax ($0.1 million after-tax), respectively, related to prior period reportable catastrophes. 1Q 2020 excludes losses of $0.2 million pre-tax ($0.1 million after-tax). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- |
Regulation G – Non GAAP Financial Measures
(2 - Continued) Net Operating Income, Excluding Reportable Catastrophes: Assurant uses net operating income (defined above), excluding reportable catastrophes (which represents catastrophe losses net of reinsurance and client profit sharing adjustments and including reinstatement and other premiums), as another important measure of the Company’s operating performance. The Company believes this metric provides investors a valuable measure of the performance of the Company’s ongoing business because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income from continuing operations. In this financial supplement, net income from continuing operations refers to adjusted net income from continuing operations to reflect the reporting of Global Preneed and its related legal entities as discontinued operations beginning with first quarter 2021.
| 2020 | Twelve Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in millions) | 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | |||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) attributable to common stockholders | $ | 134.5 | $ | — | $ | 134.5 | $ | (34.9 | ) | $ | — | $ | (34.9 | ) | $ | 173.5 | $ | — | $ | 173.5 | $ | 150.0 | $ | — | $ | 150.0 | $ | 423.1 | $ | — | $ | 423.1 | $ | 363.9 | $ | — | $ | 363.9 | ||||||||||||||||
| Less: Net (income) loss from discontinued operations | — | (19.9 | ) | (19.9 | ) | — | 118.5 | 118.5 | — | (13.7 | ) | (13.7 | ) | — | (7.2 | ) | (7.2 | ) | — | 77.7 | 77.7 | — | (80.4 | ) | (80.4 | ) | ||||||||||||||||||||||||||||
| Add: Net (loss) income attributable to non-controlling interests | (0.2 | ) | — | (0.2 | ) | (0.3 | ) | — | (0.3 | ) | 0.3 | — | 0.3 | 1.1 | — | 1.1 | 0.9 | — | 0.9 | 4.2 | — | 4.2 | ||||||||||||||||||||||||||||||||
| Add: Preferred stock dividends | 4.7 | — | 4.7 | 4.7 | — | 4.7 | 4.6 | — | 4.6 | 4.7 | — | 4.7 | 18.7 | — | 18.7 | 18.7 | — | 18.7 | ||||||||||||||||||||||||||||||||||||
| GAAP net income from continuing operations | **** | 139.0 | **** | **** | (19.9 | ) | **** | 119.1 | **** | **** | (30.5 | ) | **** | 118.5 | **** | **** | 88.0 | **** | **** | 178.4 | **** | **** | (13.7 | ) | **** | 164.7 | **** | **** | 155.8 | **** | **** | (7.2 | ) | **** | 148.6 | **** | **** | 442.7 | **** | **** | 77.7 | **** | **** | 520.4 | **** | **** | 386.8 | **** | **** | (80.4 | ) | **** | 306.4 | **** |
| Adjustments, pre-tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized (gains) losses on<br>investments^(1)^ | (38.3 | ) | 8.7 | (29.6 | ) | (16.5 | ) | (0.6 | ) | (17.1 | ) | (24.1 | ) | (4.8 | ) | (28.9 | ) | 96.3 | (11.3 | ) | 85.0 | 17.4 | (8.0 | ) | 9.4 | (66.3 | ) | 9.3 | (57.0 | ) | ||||||||||||||||||||||||
| Global Preneed goodwill impairment | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Reportable catastrophes | 34.7 | — | 34.7 | 110.1 | — | 110.1 | 12.6 | — | 12.6 | 16.3 | — | 16.3 | 173.7 | — | 173.7 | 51.8 | — | 51.8 | ||||||||||||||||||||||||||||||||||||
| COVID-19 direct and incremental expenses | 5.3 | — | 5.3 | (0.4 | ) | — | (0.4 | ) | 19.2 | (0.3 | ) | 18.9 | 3.1 | (0.1 | ) | 3.0 | 27.2 | (0.4 | ) | 26.8 | — | — | — | |||||||||||||||||||||||||||||||
| CARES Act tax benefit (after-tax) | — | — | — | — | — | — | (5.1 | ) | — | (5.1 | ) | (79.3 | ) | — | (79.3 | ) | (84.4 | ) | — | (84.4 | ) | — | — | — | ||||||||||||||||||||||||||||||
| Assurant Health runoff operations^(2)^ | (15.5 | ) | — | (15.5 | ) | (0.5 | ) | — | (0.5 | ) | (0.2 | ) | — | (0.2 | ) | 0.1 | — | 0.1 | (16.1 | ) | — | (16.1 | ) | (28.0 | ) | — | (28.0 | ) | ||||||||||||||||||||||||||
| Net charge related to Iké^(3)^ | — | — | — | — | — | — | 4.5 | — | 4.5 | 1.4 | — | 1.4 | 5.9 | — | 5.9 | 163.0 | — | 163.0 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related<br>costs^(4)^ | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 37.4 | — | 37.4 | ||||||||||||||||||||||||||||||||||||
| Other Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | (2.0 | ) | 1.9 | (0.1 | ) | (2.1 | ) | 2.0 | (0.1 | ) | (2.4 | ) | 2.3 | (0.1 | ) | (4.2 | ) | 2.4 | (1.8 | ) | (10.7 | ) | 8.6 | (2.1 | ) | (14.3 | ) | 15.7 | 1.4 | |||||||||||||||||||||||||
| Acquisition integration expenses | 9.6 | — | 9.6 | 5.2 | — | 5.2 | 4.0 | — | 4.0 | 3.3 | — | 3.3 | 22.1 | — | 22.1 | 28.1 | — | 28.1 | ||||||||||||||||||||||||||||||||||||
| Foreign exchange related losses^(5)^ | 2.9 | — | 2.9 | 2.7 | — | 2.7 | 2.4 | — | 2.4 | 3.7 | (0.2 | ) | 3.5 | 11.7 | (0.2 | ) | 11.5 | 18.2 | — | 18.2 | ||||||||||||||||||||||||||||||||||
| Current expected credit losses for businesses in runoff | 0.1 | — | 0.1 | (0.2 | ) | — | (0.2 | ) | — | 0.3 | 0.3 | 3.4 | (0.3 | ) | 3.1 | 3.3 | — | 3.3 | — | — | — | |||||||||||||||||||||||||||||||||
| Gain related to benefit plan activity | (4.5 | ) | — | (4.5 | ) | (4.9 | ) | — | (4.9 | ) | (4.3 | ) | — | (4.3 | ) | (1.9 | ) | — | (1.9 | ) | (15.6 | ) | — | (15.6 | ) | (5.6 | ) | — | (5.6 | ) | ||||||||||||||||||||||||
| Net charge related to Green Tree Insurance Agency acquisition | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 15.6 | — | 15.6 | ||||||||||||||||||||||||||||||||||||
| Loss on sale of Mortgage Solutions | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 9.6 | — | 9.6 | ||||||||||||||||||||||||||||||||||||
| Loss on building held for sale | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 7.3 | — | 7.3 | ||||||||||||||||||||||||||||||||||||
| State tax for AEB sale (after-tax) | — | — | — | 2.9 | — | 2.9 | — | — | — | — | — | — | 2.9 | — | 2.9 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Net (loss) gain from deconsolidation of consolidated investment entities^(6)^ | — | 0.1 | 0.1 | (9.4 | ) | 0.7 | (8.7 | ) | 1.6 | — | 1.6 | — | — | — | (7.8 | ) | 0.8 | (7.0 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Impact of Tax Cuts and Jobs Act at enactment (after-tax) | (1.3 | ) | — | (1.3 | ) | — | — | — | — | — | — | — | — | — | (1.3 | ) | — | (1.3 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Change in fair value of derivative investment and other expenses related to merger and acquisition<br>activities | 7.5 | — | 7.5 | 2.2 | — | 2.2 | (0.6 | ) | — | (0.6 | ) | 5.2 | — | 5.2 | 14.3 | — | 14.3 | 1.8 | — | 1.8 | ||||||||||||||||||||||||||||||||||
| (Provision) benefit for income taxes | 3.4 | (3.3 | ) | 0.1 | (20.2 | ) | 1.8 | (18.4 | ) | (1.8 | ) | 0.6 | (1.2 | ) | (21.4 | ) | 2.1 | (19.3 | ) | (40.0 | ) | 1.2 | (38.8 | ) | (8.5 | ) | (5.3 | ) | (13.8 | ) | ||||||||||||||||||||||||
| Total adjustments, after-tax | 1.9 | 7.4 | 9.3 | 206.7 | (133.9 | ) | 72.8 | 5.8 | (1.9 | ) | 3.9 | 26.0 | (7.4 | ) | 18.6 | 240.4 | (135.8 | ) | 104.6 | 210.1 | 19.7 | 229.8 | ||||||||||||||||||||||||||||||||
| Net loss (income) attributable to non-controlling interests | 0.2 | — | 0.2 | 0.3 | — | 0.3 | (0.3 | ) | — | (0.3 | ) | (1.1 | ) | — | (1.1 | ) | (0.9 | ) | — | (0.9 | ) | (4.2 | ) | — | (4.2 | ) | ||||||||||||||||||||||||||||
| Preferred stock dividends | (4.7 | ) | — | (4.7 | ) | (4.7 | ) | — | (4.7 | ) | (4.6 | ) | — | (4.6 | ) | (4.7 | ) | — | (4.7 | ) | (18.7 | ) | — | (18.7 | ) | (18.7 | ) | — | (18.7 | ) | ||||||||||||||||||||||||
| Net operating income, excluding reportable catastrophes | $ | 136.4 | **** | $ | (12.5 | ) | $ | 123.9 | **** | $ | 171.8 | **** | $ | (15.4 | ) | $ | 156.4 | **** | $ | 179.3 | **** | $ | (15.6 | ) | $ | 163.7 | **** | $ | 176.0 | **** | $ | (14.6 | ) | $ | 161.4 | **** | $ | 663.5 | **** | $ | (58.1 | ) | $ | 605.4 | **** | $ | 574.0 | **** | $ | (60.7 | ) | $ | 513.3 | **** |
| Global Lifestyle^(7)^ | $ | 87.9 | $ | — | $ | 87.9 | $ | 106.6 | $ | — | $ | 106.6 | $ | 121.7 | $ | — | $ | 121.7 | $ | 121.0 | $ | — | $ | 121.0 | $ | 437.2 | $ | — | $ | 437.2 | $ | 409.4 | $ | — | $ | 409.4 | ||||||||||||||||||
| Global Housing, excluding reportable catastrophes | 88.4 | — | 88.4 | 100.1 | — | 100.1 | 95.5 | — | 95.5 | 87.0 | — | 87.0 | 371.0 | — | 371.0 | 299.6 | — | 299.6 | ||||||||||||||||||||||||||||||||||||
| Global Preneed | 8.8 | (8.8 | ) | — | 13.2 | (13.2 | ) | — | 13.7 | (13.7 | ) | — | 12.3 | (12.3 | ) | — | 48.0 | (48.0 | ) | — | 52.2 | (52.2 | ) | — | ||||||||||||||||||||||||||||||
| Corporate and Other | (22.9 | ) | (3.7 | ) | (26.6 | ) | (23.5 | ) | (2.2 | ) | (25.7 | ) | (26.9 | ) | (1.9 | ) | (28.8 | ) | (19.5 | ) | (2.3 | ) | (21.8 | ) | (92.8 | ) | (10.1 | ) | (102.9 | ) | (85.6 | ) | (8.5 | ) | (94.1 | ) | ||||||||||||||||||
| Interest expense | (21.1 | ) | — | (21.1 | ) | (19.9 | ) | — | (19.9 | ) | (20.1 | ) | — | (20.1 | ) | (20.1 | ) | — | (20.1 | ) | (81.2 | ) | — | (81.2 | ) | (82.9 | ) | — | (82.9 | ) | ||||||||||||||||||||||||
| Preferred stock dividends | (4.7 | ) | — | (4.7 | ) | (4.7 | ) | — | (4.7 | ) | (4.6 | ) | — | (4.6 | ) | (4.7 | ) | — | (4.7 | ) | (18.7 | ) | — | (18.7 | ) | (18.7 | ) | — | (18.7 | ) | ||||||||||||||||||||||||
| Net operating income, excluding reportable catastrophes | $ | 136.4 | **** | $ | (12.5 | ) | $ | 123.9 | **** | $ | 171.8 | **** | $ | (15.4 | ) | $ | 156.4 | **** | $ | 179.3 | **** | $ | (15.6 | ) | $ | 163.7 | **** | $ | 176.0 | **** | $ | (14.6 | ) | $ | 161.4 | **** | $ | 663.5 | **** | $ | (58.1 | ) | $ | 605.4 | **** | $ | 574.0 | **** | $ | (60.7 | ) | $ | 513.3 | **** |
| (1) | As reported, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$27.5 million pre-tax ($21.7 million after-tax), $16.5 million pre-tax ($13.0 million after-tax) and $36.4 million pre-tax ($28.8 million after-tax) and net unrealized losses of $96.4 million pre-tax ($76.1 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As reported, Twelve Months 2020 and Twelve Months 2019 included net unrealized losses of $16.0 million pre-tax ($12.6 million after-tax) and net unrealized gains<br>of $34.6 million pre-tax ($27.3 million after-tax), respectively, from changes in the fair value of our equity securities and our collateralized loan obligations. As adjusted, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$22.5 million pre-tax ($17.8 million after-tax), $12.7 million pre-tax ($10.0 million after-tax) and $30.6 million pre-tax ($24.2 million after-tax) and net unrealized losses of $83.1 million pre-tax ($65.6 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As adjusted, Twelve Months 2020 and Twelve Months 2019 included net gains (losses) of ($17.3) million pre-tax (($13.7) million after-tax) and $31.4 million<br>pre-tax ($24.8 million after-tax), respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (2) | 4Q 2020 and 4Q 2019 include $14.9 million pre-tax ($11.8 million after-tax) and $26.7 million pre-tax ($21.1<br>million after-tax), respectively, of income related to the reduction of the valuation allowance on the Company’s Patient Protection and Affordable Health Care Act of 2010 (“ACA”) risk corridor program receivables. The reductions in<br>the allowance related to the Company’s 4Q 2019 entry into an agreement to sell its right to any future claim proceeds related to the associated receivables and the 4Q 2020 final settlement of the receivables. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (3) | 2Q 2020 includes a loss of $3.9 million pre-tax ($2.9 million after-tax) on the sale of the Company’s<br>interests in Iké. Twelve Months 2019 included a $163.0 million pre-tax ($163.9 million after-tax) loss related to the Company’s interests in Iké following a decline in fair value and commitment to a plan to sell such interests (of<br>which $38.4 million related to cumulative foreign currency losses recorded in other comprehensive income). The pre-tax loss includes an increase in liability related to the Company’s obligation to acquire the remainder of Iké from the<br>majority shareholders of $84.7 million and an other-than-temporary impairment loss on the Company’s 40% ownership interest in Iké of $78.3 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (4) | In connection with the debt offering, tender offer and debt redemption in 3Q 2019, the Company recorded a $31.4<br>million pre-tax loss on extinguishment of debt; $3.0 million pre-tax amortization of premium for derivative transactions purchased in anticipation of the debt issuance, which were ultimately not exercised (included in interest expense); $2.6 million<br>pre-tax loss on the termination of the interest rate swap and related derivative transactions associated with the portion of floating rate senior notes due March 2021 that were redeemed (included in interest expense); and $0.4 million pre-tax of<br>expenses related to the debt redemption (included in underwriting, general and administrative expenses). Total loss on extinguishment of debt and other related costs was $37.4 million pre-tax ($29.6 million after-tax). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (5) | 4Q 2020, 3Q 2020, 2Q 2020, 1Q 2020, included $(2.2) million, $(1.3) million, $(2.0) million, $(2.0) million of<br>net losses, respectively, from foreign exchange related to the remeasurement of net monetary assets in Argentina as a result of the classification of Argentina’s economy as highly inflationary beginning July 1, 2018. Twelve Months 2020 and<br>Twelve Months 2019 included net losses of $7.5 million and $18.2 million, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (6) | As reported, 3Q 2020 included (1) a net gain of $18.3 million pre-tax ($14.5<br>million after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million<br>pre-tax ($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As reported, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million<br>after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 4Q 2020 included (1) a net gain of $0.7 million pre-tax ($0.6 million after-tax) from the sale of our CLO asset management platform and<br>(2) additional exit related expenses of $0.8 million pre-tax ($0.6 million after-tax) associated with the sale of the CLO asset management platform. As adjusted, 3Q 2020 included (1) a net gain of $17.6 million pre-tax ($13.9 million<br>after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million pre-tax<br>($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million after-tax) of<br>expenses related to the outsourcing of our real estate management. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (7) | 2Q 2020 and Twelve Months 2019 exclude benefits of $0.2 million pre-tax ($0.1 million after-tax) and $0.1<br>million pre-tax ($0.1 million after-tax), respectively, related to prior period reportable catastrophes. 1Q 2020 excludes losses of $0.2 million pre-tax ($0.1 million after-tax). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Regulation G – Non GAAP Financial Measures
(3) Adjusted EBITDA: Assurant defines Adjusted EBITDA as net operating income (defined above), excluding interest expense, provision (benefit) for income taxes, depreciation expense and amortization of purchased intangible assets. Amortization of purchased intangible assets is excluded from this non-GAAP measure of performance because the Company believes it (i) enhances management’s and investors’ ability to analyze the ongoing operations of our businesses and (ii) facilitates comparisons of our operating performance over multiple periods, as the amortization expense associated with purchased intangible assets may fluctuate from period to period based on the timing, size, nature and number of acquisitions. Although we exclude amortization of purchased intangible assets from Adjusted EBITDA, revenue generated from such intangible assets is included within the revenue in determining Adjusted EBITDA. The Company believes Adjusted EBITDA provides investors with a valuable measure of the Company’s performance, including underlying profitability and ongoing operations, and reflects its ongoing shift to more service-oriented, fee-based businesses. The comparable GAAP measure is net income from continuing operations. In this financial supplement, net income from continuing operations refers to adjusted net income from continuing operations to reflect the reporting of Global Preneed and its related legal entities as discontinued operations beginning with first quarter 2021.
Refer to page 3 for a reconciliation of Adjusted EBITDA to net income from continuing operations.
(4) Adjusted EBITDA, Excluding Reportable Catastrophes: Assurant uses Adjusted EBITDA (defined above), excluding reportable catastrophes (defined above), as another important measure of the Company’s performance The Company believes Adjusted EBITDA, excluding reportable catastrophes, provides investors with a valuable measure of the Company’s performance, including underlying profitability and ongoing operations, and reflects its ongoing shift to more service-oriented, fee-based businesses. It also excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income from continuing operations. In this financial supplement, net income from continuing operations refers to adjusted net income from continuing operations to reflect the reporting of Global Preneed and its related legal entities as discontinued operations beginning with first quarter 2021.
| ($ in millions) | 2020 | Twelve Months Ended December 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||
| GAAP net income (loss) attributable to common stockholders | $ | 134.5 | $ | (34.9 | ) | $ | 173.5 | $ | 150.0 | $ | 423.1 | $ | 363.9 | |||||
| Less: Net (income) loss from discontinued operations | (19.9 | ) | 118.5 | (13.7 | ) | (7.2 | ) | 77.7 | (80.4 | ) | ||||||||
| Add: Net (loss) income attributable to non-controlling interests | (0.2 | ) | (0.3 | ) | 0.3 | 1.1 | 0.9 | 4.2 | ||||||||||
| Add: Preferred stock dividends | 4.7 | 4.7 | 4.6 | 4.7 | 18.7 | 18.7 | ||||||||||||
| GAAP net income from continuing operations | **** | 119.1 | **** | **** | 88.0 | **** | **** | 164.7 | **** | **** | 148.6 | **** | **** | 520.4 | **** | **** | 306.4 | **** |
| Less: | ||||||||||||||||||
| Interest expense | 26.8 | 25.5 | 26.7 | 25.5 | 104.5 | 110.6 | ||||||||||||
| Provision (benefit) for income taxes | 39.8 | 24.5 | 44.6 | (48.5 | ) | 60.4 | 148.3 | |||||||||||
| Depreciation expense | 15.5 | 13.9 | 14.3 | 12.4 | 56.1 | 51.8 | ||||||||||||
| Amortization of purchased intangible assets | 16.7 | 12.5 | 12.3 | 11.2 | 52.7 | 40.3 | ||||||||||||
| Adjustments, pre-tax: | ||||||||||||||||||
| Net realized (gains) losses on<br>investments^(1)^ | (29.6 | ) | (17.1 | ) | (28.9 | ) | 85.0 | 9.4 | (57.0 | ) | ||||||||
| Reportable catastrophes | 34.7 | 110.1 | 12.6 | 16.3 | 173.7 | 51.8 | ||||||||||||
| COVID-19 direct and incremental expenses | 5.3 | (0.6 | ) | 17.5 | 3.0 | 25.2 | — | |||||||||||
| Assurant Health runoff operations^(2)^ | (15.5 | ) | (0.5 | ) | (0.2 | ) | 0.1 | (16.1 | ) | (28.0 | ) | |||||||
| Net charge related to Iké^(3)^ | — | — | 4.5 | 1.4 | 5.9 | 163.0 | ||||||||||||
| Loss on extinguishment of debt and other related costs^(4)^ | — | — | — | — | — | 31.8 | ||||||||||||
| Other Adjustments: | ||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | (0.1 | ) | (0.1 | ) | (0.1 | ) | (1.8 | ) | (2.1 | ) | 1.4 | |||||||
| Acquisition integration expenses | 8.4 | 4.2 | 3.1 | 2.3 | 18.0 | 24.4 | ||||||||||||
| Foreign exchange related losses^(5)^ | 2.9 | 2.7 | 2.4 | 3.5 | 11.5 | 18.2 | ||||||||||||
| Current expected credit losses for businesses in runoff | 0.1 | (0.2 | ) | 0.3 | 3.1 | 3.3 | — | |||||||||||
| Gain related to benefit plan activity | (4.5 | ) | (4.9 | ) | (4.3 | ) | (1.9 | ) | (15.6 | ) | (5.6 | ) | ||||||
| Net charge related to Green Tree Insurance Agency acquisition | — | — | — | — | — | 15.6 | ||||||||||||
| Loss on sale of Mortgage Solutions | — | — | — | — | — | 9.6 | ||||||||||||
| Loss on building held for sale | — | — | — | — | — | 7.3 | ||||||||||||
| Net loss (gain) from deconsolidation of consolidated investment entities^(6)^ | 0.1 | (8.7 | ) | 1.6 | — | (7.0 | ) | — | ||||||||||
| Change in fair value of derivative investment and other expenses related to merger and acquisition<br>activities | 7.5 | 2.2 | (0.6 | ) | 5.2 | 14.3 | 1.8 | |||||||||||
| Net loss (income) attributable to non-controlling interests | 0.3 | 0.2 | (0.3 | ) | (1.4 | ) | (1.2 | ) | (5.1 | ) | ||||||||
| Adjusted EBITDA, excluding reportable catastrophes | $ | 227.5 | **** | $ | 251.7 | **** | $ | 270.2 | **** | $ | 264.0 | **** | $ | 1,013.4 | **** | $ | 886.6 | **** |
| Global Lifestyle^(7)^ | $ | 137.2 | $ | 150.6 | $ | 175.2 | $ | 174.0 | $ | 637.0 | $ | 586.5 | ||||||
| Global Housing, excluding reportable catastrophes | 120.6 | 134.1 | 128.8 | 117.3 | 500.8 | 407.6 | ||||||||||||
| Corporate and Other | (30.3 | ) | (33.0 | ) | (33.8 | ) | (27.3 | ) | (124.4 | ) | (107.5 | ) | ||||||
| Adjusted EBITDA, excluding reportable catastrophes | $ | 227.5 | **** | $ | 251.7 | **** | $ | 270.2 | **** | $ | 264.0 | **** | $ | 1,013.4 | **** | $ | 886.6 | **** |
| (1) | 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of $22.5 million<br>pre-tax ($17.8 million after-tax), $12.7 million pre-tax ($10.0 million after-tax) and $30.6 million pre-tax ($24.2 million after-tax) and net unrealized losses of $83.1 million pre-tax ($65.6 million after-tax), respectively, from changes in fair<br>value of our equity securities and our collateralized loan obligations. Twelve Months 2020 and Twelve Months 2019 included net gains (losses) of ($17.3) million pre-tax (($13.7) million after-tax) and $31.4 million pre-tax ($24.8 million after-tax),<br>respectively. | |||||||||||||||||
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| (2) | 4Q 2020 and 4Q 2019 include $14.9 million pre-tax ($11.8 million after-tax) and $26.7 million pre-tax ($21.1<br>million after-tax), respectively, of income related to the reduction of the valuation allowance on the Company’s Patient Protection and Affordable Health Care Act of 2010 (“ACA”) risk corridor program receivables. The reductions in<br>the allowance related to the Company’s 4Q 2019 entry into an agreement to sell its right to any future claim proceeds related to the associated receivables and the 4Q 2020 final settlement of the receivables. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (3) | 2Q 2020 includes a loss of $3.9 million pre-tax ($2.9 million after-tax) on the sale of the Company’s<br>interests in Iké. Twelve Months 2019 included a $163.0 million pre-tax ($163.9 million after-tax) loss related to the Company’s interests in Iké following a decline in fair value and commitment to a plan to sell such interests (of<br>which $38.4 million related to cumulative foreign currency losses recorded in other comprehensive income). The pre-tax loss includes an increase in liability related to the Company’s obligation to acquire the remainder of Iké from the<br>majority shareholders of $84.7 million and an other-than-temporary impairment loss on the Company’s 40% ownership interest in Iké of $78.3 million. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (4) | In connection with the debt offering, tender offer and debt redemption in 3Q 2019, the Company recorded a $31.4<br>million pre-tax loss on extinguishment of debt and $0.4 million pre-tax of expenses related to the debt redemption (included in underwriting, general and administrative expenses). | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (5) | 4Q 2020, 3Q 2020, 2Q 2020, 1Q 2020, included $(2.2) million, $(1.3) million, $(2.0) million, $(2.0) million of<br>net losses, respectively, from foreign exchange related to the remeasurement of net monetary assets in Argentina as a result of the classification of Argentina’s economy as highly inflationary beginning July 1, 2018. Twelve Months 2020 and<br>Twelve Months 2019 included net losses of $7.5 million and $18.2 million, respectively. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (6) | 4Q 2020 included (1) a net gain of $0.7 million pre-tax ($0.6 million after-tax)<br>from the sale of our CLO asset management platform and (2) additional exit related expenses of $0.8 million pre-tax ($0.6 million after-tax) associated with the sale of the CLO asset management platform. 3Q 2020 included (1) a net gain of<br>$17.6 million pre-tax ($13.9 million after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management<br>platform and (3) $2.8 million pre-tax ($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million<br>pre-tax ($0.2 million after-tax) of expenses related to the outsourcing of our real estate management. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (7) | 2Q 2020 and Twelve Months 2019 exclude pre-tax benefits of $0.2 million and $0.1 million, respectively, related<br>to prior period reportable catastrophes. 1Q 2020 excludes pre-tax losses of $0.2 million. | |||||||||||||||||
| --- | --- |
Regulation G – Non GAAP Financial Measures
(5) Net Operating Income per Diluted Share: Assurant uses net operating income per diluted share as an important measure of the Company’s stockholder value. Net operating income per diluted share equals net operating income (defined above) plus any dilutive preferred stock dividends divided by weighted average diluted shares outstanding. The Company believes this metric provides investors with a valuable measure of stockholder value because it excludes items that do not represent the ongoing operations of the Company. The comparable GAAP measure is net income from continuing operations per diluted share, defined as net income from continuing operations plus any dilutive preferred stock dividends less net income from non-controlling interests divided by weighted average diluted shares outstanding.
| ($ per share) | 2020 | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | |||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) attributable to common stockholders per diluted share^(1)^ | $ | 2.23 | **** | $ | — | **** | $ | 2.23 | **** | $ | (0.58 | ) | $ | — | **** | $ | (0.58 | ) | $ | 2.81 | **** | $ | — | **** | $ | 2.81 | **** | $ | 2.43 | **** | $ | — | **** | $ | 2.43 | **** | $ | 6.99 | **** | $ | — | **** | $ | 6.99 | **** | $ | 5.84 | **** | $ | — | **** | $ | 5.84 | **** |
| Net (income) loss from discontinued operations | — | (0.32 | ) | (0.32 | ) | — | 1.96 | 1.96 | — | (0.22 | ) | (0.22 | ) | — | (0.11 | ) | (0.11 | ) | — | 1.23 | 1.23 | — | (1.28 | ) | (1.28 | ) | ||||||||||||||||||||||||||||
| GAAP net income from continuing operations per diluted share | **** | 2.23 | **** | **** | (0.32 | ) | **** | 1.91 | **** | **** | (0.58 | ) | **** | 1.96 | **** | **** | 1.38 | **** | **** | 2.81 | **** | **** | (0.22 | ) | **** | 2.59 | **** | **** | 2.43 | **** | **** | (0.11 | ) | **** | 2.32 | **** | **** | 6.99 | **** | **** | 1.23 | **** | **** | 8.22 | **** | **** | 5.84 | **** | **** | (1.28 | ) | **** | 4.56 | **** |
| Adjustments per diluted share, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized (gains) losses on<br>investments^(2)^ | (0.48 | ) | 0.13 | (0.35 | ) | (0.22 | ) | — | (0.22 | ) | (0.30 | ) | (0.06 | ) | (0.36 | ) | 1.20 | (0.14 | ) | 1.06 | 0.22 | (0.08 | ) | 0.14 | (0.88 | ) | 0.12 | (0.76 | ) | |||||||||||||||||||||||||
| Global Preneed goodwill impairment | 0.04 | (0.04 | ) | — | 2.25 | (2.25 | ) | — | — | — | — | — | — | — | 2.18 | (2.18 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||
| COVID-19 direct and incremental expenses | 0.07 | — | 0.07 | — | — | — | 0.24 | — | 0.24 | 0.04 | — | 0.04 | 0.34 | — | 0.34 | — | — | — | ||||||||||||||||||||||||||||||||||||
| CARES Act tax benefit | — | — | — | — | — | — | (0.08 | ) | — | (0.08 | ) | (1.25 | ) | — | (1.25 | ) | (1.34 | ) | — | (1.34 | ) | — | — | — | ||||||||||||||||||||||||||||||
| Assurant Health runoff operations^(3)^ | (0.20 | ) | — | (0.20 | ) | (0.01 | ) | — | (0.01 | ) | — | — | — | — | — | — | (0.20 | ) | — | (0.20 | ) | (0.35 | ) | — | (0.35 | ) | ||||||||||||||||||||||||||||
| Net charge related to Iké^(4)^ | — | — | — | — | — | — | 0.06 | — | 0.06 | 0.09 | — | 0.09 | 0.15 | — | 0.15 | 2.63 | — | 2.63 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related<br>costs^(5)^ | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.48 | — | 0.48 | ||||||||||||||||||||||||||||||||||||
| Other Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | (0.03 | ) | 0.03 | — | (0.03 | ) | 0.03 | — | (0.03 | ) | 0.03 | — | (0.05 | ) | 0.02 | (0.03 | ) | (0.13 | ) | 0.10 | (0.03 | ) | (0.19 | ) | 0.19 | — | ||||||||||||||||||||||||||||
| Acquisition integration expenses | 0.14 | — | 0.14 | 0.07 | — | 0.07 | 0.05 | — | 0.05 | 0.04 | — | 0.04 | 0.30 | — | 0.30 | 0.37 | — | 0.37 | ||||||||||||||||||||||||||||||||||||
| Foreign exchange related losses^(6)^ | 0.04 | — | 0.04 | 0.04 | — | 0.04 | 0.03 | — | 0.03 | 0.05 | — | 0.05 | 0.17 | — | 0.17 | 0.29 | — | 0.29 | ||||||||||||||||||||||||||||||||||||
| Current expected credit losses for businesses in runoff | — | — | — | — | — | — | — | — | — | 0.04 | — | 0.04 | 0.04 | — | 0.04 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Gain related to benefit plan activity | (0.06 | ) | — | (0.06 | ) | (0.07 | ) | — | (0.07 | ) | (0.05 | ) | — | (0.05 | ) | (0.02 | ) | — | (0.02 | ) | (0.19 | ) | — | (0.19 | ) | (0.07 | ) | — | (0.07 | ) | ||||||||||||||||||||||||
| Net charge related to Green Tree Insurance Agency acquisition | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.20 | — | 0.20 | ||||||||||||||||||||||||||||||||||||
| Loss on sale of Mortgage Solutions | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.12 | — | 0.12 | ||||||||||||||||||||||||||||||||||||
| Loss on building held for sale | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.09 | — | 0.09 | ||||||||||||||||||||||||||||||||||||
| State tax for AEB sale | — | — | — | 0.05 | — | 0.05 | — | — | — | — | — | — | 0.05 | — | 0.05 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Net (gain) loss from deconsolidation of consolidated investment entities^(7)^ | — | — | — | (0.12 | ) | — | (0.12 | ) | 0.02 | — | 0.02 | — | — | — | (0.10 | ) | 0.01 | (0.09 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Impact of Tax Cuts and Jobs Act at enactment | (0.02 | ) | — | (0.02 | ) | — | — | — | — | — | — | — | — | — | (0.02 | ) | — | (0.02 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Change in fair value of derivative investment and other expenses related to merger and acquisition<br>activities | 0.09 | — | 0.09 | 0.03 | — | 0.03 | — | — | — | 0.07 | — | 0.07 | 0.17 | — | 0.17 | 0.02 | — | 0.02 | ||||||||||||||||||||||||||||||||||||
| Net operating income, per dilutedshare^(1)^ | $ | 1.82 | **** | $ | (0.20 | ) | $ | 1.62 | **** | $ | 1.41 | **** | $ | (0.26 | ) | $ | 1.15 | **** | $ | 2.75 | **** | $ | (0.25 | ) | $ | 2.50 | **** | $ | 2.64 | **** | $ | (0.23 | ) | $ | 2.41 | **** | $ | 8.63 | **** | $ | (0.92 | ) | $ | 7.71 | **** | $ | 8.55 | **** | $ | (0.97 | ) | $ | 7.58 | **** |
| ($ per share) | 2020 | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | |||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) attributable to common stockholders per diluted share^(1)^ | $ | 2.23 | **** | $ | — | **** | $ | 2.23 | **** | $ | (0.58 | ) | $ | — | **** | $ | (0.58 | ) | $ | 2.81 | **** | $ | — | **** | $ | 2.81 | **** | $ | 2.43 | **** | $ | — | **** | $ | 2.43 | **** | $ | 6.99 | **** | $ | — | **** | $ | 6.99 | **** | $ | 5.84 | **** | $ | — | **** | $ | 5.84 | **** |
| Net (income) loss from discontinued operations | — | (0.32 | ) | (0.32 | ) | — | 1.96 | 1.96 | — | (0.22 | ) | (0.22 | ) | — | (0.11 | ) | (0.11 | ) | — | 1.23 | 1.23 | — | (1.28 | ) | (1.28 | ) | ||||||||||||||||||||||||||||
| GAAP net income from continuing operations per diluted share | **** | 2.23 | **** | **** | (0.32 | ) | **** | 1.91 | **** | **** | (0.58 | ) | **** | 1.96 | **** | **** | 1.38 | **** | **** | 2.81 | **** | **** | (0.22 | ) | **** | 2.59 | **** | **** | 2.43 | **** | **** | (0.11 | ) | **** | 2.32 | **** | **** | 6.99 | **** | **** | 1.23 | **** | **** | 8.22 | **** | **** | 5.84 | **** | **** | (1.28 | ) | **** | 4.56 | **** |
| Adjustments per diluted share, pre-tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized (gains) losses on<br>investments^(2)^ | (0.61 | ) | 0.14 | (0.47 | ) | (0.27 | ) | (0.01 | ) | (0.28 | ) | 0.38 | (0.84 | ) | (0.46 | ) | 1.52 | (0.18 | ) | 1.34 | 0.28 | (0.13 | ) | 0.15 | (1.06 | ) | 0.15 | (0.91 | ) | |||||||||||||||||||||||||
| Global Preneed goodwill impairment | — | — | — | 2.29 | (2.29 | ) | — | — | — | — | — | — | — | 2.18 | (2.18 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| COVID-19 direct and incremental expenses | 0.08 | — | 0.08 | (0.01 | ) | — | (0.01 | ) | (0.30 | ) | 0.60 | 0.30 | 0.05 | — | 0.05 | 0.43 | (0.01 | ) | 0.42 | — | — | — | ||||||||||||||||||||||||||||||||
| CARES Act tax benefit (after-tax) | — | — | — | — | — | — | 0.08 | (0.16 | ) | (0.08 | ) | (1.25 | ) | — | (1.25 | ) | (1.34 | ) | — | (1.34 | ) | — | — | — | ||||||||||||||||||||||||||||||
| Assurant Health runoff operations^(3)^ | (0.25 | ) | — | (0.25 | ) | (0.01 | ) | — | (0.01 | ) | — | — | — | — | — | — | (0.25 | ) | — | (0.25 | ) | (0.45 | ) | — | (0.45 | ) | ||||||||||||||||||||||||||||
| Net charge related to Iké^(4)^ | — | — | — | — | — | — | (0.08 | ) | 0.16 | 0.08 | 0.02 | — | 0.02 | 0.09 | — | 0.09 | 2.62 | — | 2.62 | |||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related<br>costs^(5)^ | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.60 | — | 0.60 | ||||||||||||||||||||||||||||||||||||
| Other Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | (0.03 | ) | 0.03 | — | (0.04 | ) | 0.03 | (0.01 | ) | 0.04 | (0.04 | ) | — | (0.07 | ) | 0.03 | (0.04 | ) | (0.17 | ) | 0.14 | (0.03 | ) | (0.23 | ) | 0.25 | 0.02 | |||||||||||||||||||||||||||
| Acquisition integration expenses | 0.15 | — | 0.15 | 0.09 | — | 0.09 | (0.06 | ) | 0.12 | 0.06 | 0.05 | — | 0.05 | 0.35 | — | 0.35 | 0.45 | — | 0.45 | |||||||||||||||||||||||||||||||||||
| Foreign exchange related losses^(6)^ | 0.05 | — | 0.05 | 0.04 | — | 0.04 | (0.04 | ) | 0.08 | 0.04 | 0.07 | — | 0.07 | 0.19 | — | 0.19 | 0.29 | — | 0.29 | |||||||||||||||||||||||||||||||||||
| Current expected credit losses for businesses in runoff | — | — | — | — | — | — | — | — | — | 0.05 | — | 0.05 | 0.05 | — | 0.05 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Gain related to benefit plan activity | (0.07 | ) | — | (0.07 | ) | (0.08 | ) | — | (0.08 | ) | 0.07 | (0.14 | ) | (0.07 | ) | (0.03 | ) | — | (0.03 | ) | (0.25 | ) | — | (0.25 | ) | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||||||||
| Net charge related to Green Tree Insurance Agency acquisition | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.25 | — | 0.25 | ||||||||||||||||||||||||||||||||||||
| Loss on sale of Mortgage Solutions | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.15 | — | 0.15 | ||||||||||||||||||||||||||||||||||||
| Loss on building held for sale | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.12 | — | 0.12 | ||||||||||||||||||||||||||||||||||||
| State tax for AEB sale (after-tax) | — | — | — | 0.05 | — | 0.05 | — | — | — | — | — | — | 0.05 | — | 0.05 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Net (gain) loss from deconsolidation of consolidated investment entities^(7)^ | — | — | — | (0.16 | ) | 0.02 | (0.14 | ) | (0.03 | ) | 0.06 | 0.03 | — | — | — | (0.12 | ) | 0.01 | (0.11 | ) | — | — | — | |||||||||||||||||||||||||||||||
| Impact of Tax Cuts and Jobs Act at enactment (after-tax) | (0.02 | ) | — | (0.02 | ) | — | — | — | — | — | — | — | — | — | (0.02 | ) | — | (0.02 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Change in fair value of derivative investment and other expenses related to merger and acquisition<br>activities | 0.12 | — | 0.12 | 0.04 | — | 0.04 | 0.01 | (0.02 | ) | (0.01 | ) | 0.08 | — | 0.08 | 0.23 | — | 0.23 | 0.03 | — | 0.03 | ||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 0.17 | (0.05 | ) | 0.12 | 0.05 | 0.03 | 0.08 | (0.01 | ) | 0.03 | 0.02 | (0.28 | ) | 0.03 | (0.25 | ) | (0.06 | ) | 0.02 | (0.04 | ) | 0.03 | (0.09 | ) | (0.06 | ) | ||||||||||||||||||||||||||||
| Net operating income, per dilutedshare^(1)^ | $ | 1.82 | **** | $ | (0.20 | ) | $ | 1.62 | **** | $ | 1.41 | **** | $ | (0.26 | ) | $ | 1.15 | **** | $ | 2.87 | **** | $ | (0.37 | ) | $ | 2.50 | **** | $ | 2.64 | **** | $ | (0.23 | ) | $ | 2.41 | **** | $ | 8.63 | **** | $ | (0.92 | ) | $ | 7.71 | **** | $ | 8.55 | **** | $ | (0.97 | ) | $ | 7.58 | **** |
| (1) | Refer to page 1 for additional information on the share counts used in the per share calculations.<br> | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (2) | As reported, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$27.5 million pre-tax ($21.7 million after-tax), $16.5 million pre-tax ($13.0 million after-tax) and $36.4 million pre-tax ($28.8 million after-tax) and net unrealized losses of $96.4 million pre-tax ($76.1 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As reported, Twelve Months 2020 and Twelve Months 2019 included net unrealized losses of $16.0 million pre-tax ($12.6 million after-tax) and net unrealized gains<br>of $34.6 million pre-tax ($27.3 million after-tax), respectively, from changes in the fair value of our equity securities and our collateralized loan obligations. As adjusted, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$22.5 million pre-tax ($17.8 million after-tax), $12.7 million pre-tax ($10.0 million after-tax) and $30.6 million pre-tax ($24.2 million after-tax) and net unrealized losses of $83.1 million pre-tax ($65.6 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As adjusted, Twelve Months 2020 and Twelve Months 2019 included net gains (losses) of ($17.3) million pre-tax (($13.7) million after-tax) and $31.4 million<br>pre-tax ($24.8 million after-tax), respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (3) | 4Q 2020 and 4Q 2019 include $14.9 million pre-tax ($11.8 million after-tax) and $26.7 million pre-tax ($21.1<br>million after-tax), respectively, of income related to the reduction of the valuation allowance on the Company’s Patient Protection and Affordable Health Care Act of 2010 (“ACA”) risk corridor program receivables. The reductions in<br>the allowance related to the Company’s 4Q 2019 entry into an agreement to sell its right to any future claim proceeds related to the associated receivables and the 4Q 2020 final settlement of the receivables. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (4) | 2Q 2020 includes a loss of $3.9 million pre-tax ($2.9 million after-tax) on the sale of the Company’s<br>interests in Iké. Twelve Months 2019 included a $163.0 million pre-tax ($163.9 million after-tax) loss related to the Company’s interests in Iké following a decline in fair value and commitment to a plan to sell such interests (of<br>which $38.4 million related to cumulative foreign currency losses recorded in other comprehensive income). The pre-tax loss includes an increase in liability related to the Company’s obligation to acquire the remainder of Iké from the<br>majority shareholders of $84.7 million and an other-than-temporary impairment loss on the Company’s 40% ownership interest in Iké of $78.3 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (5) | In connection with the debt offering, tender offer and debt redemption in 3Q 2019, the Company recorded a $31.4<br>million pre-tax loss on extinguishment of debt; $3.0 million pre-tax amortization of premium for derivative transactions purchased in anticipation of the debt issuance, which were ultimately not exercised (included in interest expense); $2.6 million<br>pre-tax loss on the termination of the interest rate swap and related derivative transactions associated with the portion of floating rate senior notes due March 2021 that were redeemed (included in interest expense); and $0.4 million pre-tax of<br>expenses related to the debt redemption (included in underwriting, general and administrative expenses). Total loss on extinguishment of debt and other related costs was $37.4 million pre-tax ($29.6 million after-tax). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (6) | 4Q 2020, 3Q 2020, 2Q 2020, 1Q 2020, included $(2.2) million, $(1.3) million, $(2.0) million, $(2.0) million of<br>net losses, respectively, from foreign exchange related to the remeasurement of net monetary assets in Argentina as a result of the classification of Argentina’s economy as highly inflationary beginning July 1, 2018. Twelve Months 2020 and<br>Twelve Months 2019 included net losses of $7.5 million and $18.2 million, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (7) | As reported, 3Q 2020 included (1) a net gain of $18.3 million pre-tax ($14.5<br>million after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million<br>pre-tax ($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As reported, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million<br>after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 4Q 2020 included (1) a net gain of $0.7 million pre-tax ($0.6 million after-tax) from the sale of our CLO asset management platform and<br>(2) additional exit related expenses of $0.8 million pre-tax ($0.6 million after-tax) associated with the sale of the CLO asset management platform. As adjusted, 3Q 2020 included (1) a net gain of $17.6 million pre-tax ($13.9 million<br>after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million pre-tax<br>($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million after-tax) of<br>expenses related to the outsourcing of our real estate management. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- |
Regulation G – Non GAAP Financial Measures
(6) Net Operating Income, Excluding Reportable Catastrophes, per Diluted Share: Assurant uses net operating income per diluted share, excluding reportable catastrophes, as another important measure of the Company’s stockholder value. The Company believes this metric provides investors with a valuable measure of stockholder value because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income from continuing operations per diluted share, defined as net income from continuing operations plus any dilutive preferred stock dividends less net income from non-controlling interests divided by weighted average diluted shares outstanding.
| ($ per share) | 2020 | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | |||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) attributable to common stockholders per diluted share^(1)^ | $ | 2.23 | **** | $ | — | **** | $ | 2.23 | **** | $ | (0.58 | ) | $ | — | **** | $ | (0.58 | ) | $ | 2.81 | **** | $ | — | **** | $ | 2.81 | **** | $ | 2.43 | **** | $ | — | **** | $ | 2.43 | **** | $ | 6.99 | **** | $ | — | **** | $ | 6.99 | **** | $ | 5.84 | **** | $ | — | **** | $ | 5.84 | **** |
| Net (income) loss from discontinued operations | — | (0.32 | ) | (0.32 | ) | — | 1.96 | 1.96 | — | (0.22 | ) | (0.22 | ) | — | (0.11 | ) | (0.11 | ) | — | 1.23 | 1.23 | — | (1.28 | ) | (1.28 | ) | ||||||||||||||||||||||||||||
| GAAP net income from continuing operations per diluted share | **** | 2.23 | **** | **** | (0.32 | ) | **** | 1.91 | **** | **** | (0.58 | ) | **** | 1.96 | **** | **** | 1.38 | **** | **** | 2.81 | **** | **** | (0.22 | ) | **** | 2.59 | **** | **** | 2.43 | **** | **** | (0.11 | ) | **** | 2.32 | **** | **** | 6.99 | **** | **** | 1.23 | **** | **** | 8.22 | **** | **** | 5.84 | **** | **** | (1.28 | ) | **** | 4.56 | **** |
| Adjustments, net of tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized (gains) losses on<br>investments^(2)^ | (0.48 | ) | 0.13 | (0.35 | ) | (0.22 | ) | — | (0.22 | ) | (0.30 | ) | (0.06 | ) | (0.36 | ) | 1.20 | (0.14 | ) | 1.06 | 0.22 | (0.08 | ) | 0.14 | (0.88 | ) | 0.12 | (0.76 | ) | |||||||||||||||||||||||||
| Global Preneed goodwill impairment | 0.04 | (0.04 | ) | — | 2.25 | (2.25 | ) | — | — | — | — | — | — | — | 2.18 | (2.18 | ) | — | — | — | — | |||||||||||||||||||||||||||||||||
| Reportable catastrophes | 0.44 | — | 0.44 | 1.44 | — | 1.44 | 0.15 | 0.01 | 0.16 | 0.20 | — | 0.20 | 2.17 | — | 2.17 | 0.66 | — | 0.66 | ||||||||||||||||||||||||||||||||||||
| COVID-19 direct and incremental expenses | 0.07 | — | 0.07 | — | — | — | 0.24 | — | 0.24 | 0.04 | — | 0.04 | 0.34 | — | 0.34 | — | — | — | ||||||||||||||||||||||||||||||||||||
| CARES Act tax benefit | — | — | — | — | — | — | (0.08 | ) | — | (0.08 | ) | (1.25 | ) | — | (1.25 | ) | (1.34 | ) | — | (1.34 | ) | — | — | — | ||||||||||||||||||||||||||||||
| Assurant Health runoff operations^(3)^ | (0.20 | ) | — | (0.20 | ) | (0.01 | ) | — | (0.01 | ) | — | — | — | — | — | — | (0.20 | ) | — | (0.20 | ) | (0.35 | ) | — | (0.35 | ) | ||||||||||||||||||||||||||||
| Net charge related to Iké^(4)^ | — | — | — | — | — | — | 0.06 | — | 0.06 | 0.09 | — | 0.09 | 0.15 | — | 0.15 | 2.63 | — | 2.63 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related<br>costs^(5)^ | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.48 | — | 0.48 | ||||||||||||||||||||||||||||||||||||
| Other Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | (0.03 | ) | 0.03 | — | (0.03 | ) | 0.03 | — | (0.03 | ) | 0.03 | — | (0.05 | ) | 0.02 | (0.03 | ) | (0.13 | ) | 0.10 | (0.03 | ) | (0.19 | ) | 0.19 | — | ||||||||||||||||||||||||||||
| Acquisition integration expenses | 0.14 | — | 0.14 | 0.07 | — | 0.07 | 0.05 | — | 0.05 | 0.04 | — | 0.04 | 0.30 | — | 0.30 | 0.37 | — | 0.37 | ||||||||||||||||||||||||||||||||||||
| Foreign exchange related losses^(6)^ | 0.04 | — | 0.04 | 0.04 | — | 0.04 | 0.03 | — | 0.03 | 0.05 | — | 0.05 | 0.17 | — | 0.17 | 0.29 | — | 0.29 | ||||||||||||||||||||||||||||||||||||
| Current expected credit losses for businesses in runoff | — | — | — | — | — | — | — | — | — | 0.04 | — | 0.04 | 0.04 | — | 0.04 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Gain related to benefit plan activity | (0.06 | ) | — | (0.06 | ) | (0.07 | ) | — | (0.07 | ) | (0.05 | ) | — | (0.05 | ) | (0.02 | ) | — | (0.02 | ) | (0.19 | ) | — | (0.19 | ) | (0.07 | ) | — | (0.07 | ) | ||||||||||||||||||||||||
| Net charge related to Green Tree Insurance Agency acquisition | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.20 | — | 0.20 | ||||||||||||||||||||||||||||||||||||
| Loss on sale of Mortgage Solutions | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.12 | — | 0.12 | ||||||||||||||||||||||||||||||||||||
| Loss on building held for sale | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.09 | — | 0.09 | ||||||||||||||||||||||||||||||||||||
| State tax for AEB sale | — | — | — | 0.05 | — | 0.05 | — | — | — | — | — | — | 0.05 | — | 0.05 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Net (gain) loss from deconsolidation of consolidated investment entities^(7)^ | — | — | — | (0.12 | ) | — | (0.12 | ) | 0.02 | — | 0.02 | — | — | — | (0.10 | ) | 0.01 | (0.09 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Impact of Tax Cuts and Jobs Act at enactment | (0.02 | ) | — | (0.02 | ) | — | — | — | — | — | — | — | — | — | (0.02 | ) | — | (0.02 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Change in fair value of derivative investment and other expenses related to merger and acquisition<br>activities | 0.09 | — | 0.09 | 0.03 | — | 0.03 | — | — | — | 0.07 | — | 0.07 | 0.17 | — | 0.17 | 0.02 | — | 0.02 | ||||||||||||||||||||||||||||||||||||
| Net operating income, excluding reportable catastrophes, per diluted share^(1)^ | $ | 2.26 | **** | $ | (0.20 | ) | $ | 2.06 | **** | $ | 2.85 | **** | $ | (0.26 | ) | $ | 2.59 | **** | $ | 2.90 | **** | $ | (0.24 | ) | $ | 2.66 | **** | $ | 2.84 | **** | $ | (0.23 | ) | $ | 2.61 | **** | $ | 10.80 | **** | $ | (0.92 | ) | $ | 9.88 | **** | $ | 9.21 | **** | $ | (0.97 | ) | $ | 8.24 | **** |
| ($ peir share) | 2020 | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
| As reported | Impact ofdiscontinuedoperations | As restated | As reported | Impact ofdiscontinuedoperations | As restated | As reported | Impact ofdiscontinuedoperations | As restated | As reported | Impact ofdiscontinuedoperations | As restated | As reported | Impact ofdiscontinuedoperations | As restated | As reported | Impact ofdiscontinuedoperations | Asrestated | |||||||||||||||||||||||||||||||||||||
| GAAP net income (loss) attributable to common stockholders per diluted share^(1)^ | $ | 2.23 | **** | $ | — | **** | $ | 2.23 | **** | $ | (0.58 | ) | $ | — | **** | $ | (0.58 | ) | $ | 2.81 | **** | $ | — | **** | $ | 2.81 | **** | $ | 2.43 | **** | $ | — | **** | $ | 2.43 | **** | $ | 6.99 | **** | $ | — | **** | $ | 6.99 | **** | $ | 5.84 | **** | $ | — | **** | $ | 5.84 | **** |
| Net (income) loss from discontinued operations | — | (0.32 | ) | (0.32 | ) | — | 1.96 | 1.96 | — | (0.22 | ) | (0.22 | ) | — | (0.11 | ) | (0.11 | ) | — | 1.23 | 1.23 | — | (1.28 | ) | (1.28 | ) | ||||||||||||||||||||||||||||
| GAAP net income from continuing operations per diluted share | **** | 2.23 | **** | **** | (0.32 | ) | **** | 1.91 | **** | **** | (0.58 | ) | **** | 1.96 | **** | **** | 1.38 | **** | **** | 2.81 | **** | **** | (0.22 | ) | **** | 2.59 | **** | **** | 2.43 | **** | **** | (0.11 | ) | **** | 2.32 | **** | **** | 6.99 | **** | **** | 1.23 | **** | **** | 8.22 | **** | **** | 5.84 | **** | **** | (1.28 | ) | **** | 4.56 | **** |
| Adjustments, pre-tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized (gains) losses on<br>investments^(2)^ | (0.61 | ) | 0.14 | (0.47 | ) | (0.27 | ) | (0.01 | ) | (0.28 | ) | (0.38 | ) | (0.08 | ) | (0.46 | ) | 1.52 | (0.18 | ) | 1.34 | 0.28 | (0.13 | ) | 0.15 | (1.06 | ) | 0.15 | (0.91 | ) | ||||||||||||||||||||||||
| Global Preneed goodwill impairment | — | — | — | 2.29 | (2.29 | ) | — | — | — | — | — | — | — | 2.18 | (2.18 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Reportable catastrophes | 0.56 | — | 0.56 | 1.83 | — | 1.83 | 0.20 | — | 0.20 | 0.26 | — | 0.26 | 2.75 | — | 2.75 | 0.83 | — | 0.83 | ||||||||||||||||||||||||||||||||||||
| COVID-19 direct and incremental expenses | 0.08 | — | 0.08 | (0.01 | ) | — | (0.01 | ) | 0.30 | — | 0.30 | 0.05 | — | 0.05 | 0.43 | (0.01 | ) | 0.42 | — | — | — | |||||||||||||||||||||||||||||||||
| CARES Act tax benefit (after tax) | — | — | — | — | — | — | (0.08 | ) | — | (0.08 | ) | (1.25 | ) | — | (1.25 | ) | (1.34 | ) | — | (1.34 | ) | — | — | — | ||||||||||||||||||||||||||||||
| Assurant Health runoff operations^(3)^ | (0.25 | ) | — | (0.25 | ) | (0.01 | ) | — | (0.01 | ) | — | — | — | — | — | — | (0.25 | ) | — | (0.25 | ) | (0.45 | ) | — | (0.45 | ) | ||||||||||||||||||||||||||||
| Net charge related to Iké^(4)^ | — | — | — | — | — | — | 0.08 | — | 0.08 | 0.02 | — | 0.02 | 0.09 | — | 0.09 | 2.62 | — | 2.62 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related<br>costs^(5)^ | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.60 | — | 0.60 | ||||||||||||||||||||||||||||||||||||
| Other Adjustments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Amortization of deferred gains on disposal of businesses | (0.03 | ) | 0.03 | — | (0.04 | ) | 0.03 | (0.01 | ) | (0.04 | ) | 0.04 | — | (0.07 | ) | 0.03 | (0.04 | ) | (0.17 | ) | 0.14 | (0.03 | ) | (0.23 | ) | 0.25 | 0.02 | |||||||||||||||||||||||||||
| Acquisition integration expenses | 0.15 | — | 0.15 | 0.09 | — | 0.09 | 0.06 | — | 0.06 | 0.05 | — | 0.05 | 0.35 | — | 0.35 | 0.45 | — | 0.45 | ||||||||||||||||||||||||||||||||||||
| Foreign exchange related losses^(6)^ | 0.05 | — | 0.05 | 0.04 | — | 0.04 | 0.04 | — | 0.04 | 0.07 | — | 0.07 | 0.19 | — | 0.19 | 0.29 | — | 0.29 | ||||||||||||||||||||||||||||||||||||
| Current expected credit losses for businesses in runoff | — | — | — | — | — | — | — | — | — | 0.05 | — | 0.05 | 0.05 | — | 0.05 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Gain related to benefit plan activity | (0.07 | ) | — | (0.07 | ) | (0.08 | ) | — | (0.08 | ) | (0.07 | ) | — | (0.07 | ) | (0.03 | ) | — | (0.03 | ) | (0.25 | ) | — | (0.25 | ) | (0.09 | ) | — | (0.09 | ) | ||||||||||||||||||||||||
| Net charge related to Green Tree Insurance Agency acquisition | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.25 | — | 0.25 | ||||||||||||||||||||||||||||||||||||
| Loss on sale of Mortgage Solutions | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.15 | — | 0.15 | ||||||||||||||||||||||||||||||||||||
| Loss on building held for sale | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 0.12 | — | 0.12 | ||||||||||||||||||||||||||||||||||||
| State tax for AEB sale (after-tax) | — | — | — | 0.05 | — | 0.05 | — | — | — | — | — | — | 0.05 | — | 0.05 | — | — | — | ||||||||||||||||||||||||||||||||||||
| Net (gain) loss from deconsolidation of consolidated investment entities^(7)^ | — | — | — | (0.16 | ) | 0.02 | (0.14 | ) | 0.03 | — | 0.03 | — | — | — | (0.12 | ) | 0.01 | (0.11 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Impact of Tax Cuts and Jobs Act at enactment (after-tax) | (0.02 | ) | — | (0.02 | ) | — | — | — | — | — | — | — | — | — | (0.02 | ) | — | (0.02 | ) | — | — | — | ||||||||||||||||||||||||||||||||
| Change in fair value of derivative investment and other expenses related to merger and acquisition<br>activities | 0.12 | — | 0.12 | 0.04 | — | 0.04 | (0.01 | ) | — | (0.01 | ) | 0.08 | — | 0.08 | 0.23 | — | 0.23 | 0.03 | — | 0.03 | ||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 0.05 | (0.05 | ) | — | (0.34 | ) | 0.03 | (0.31 | ) | (0.04 | ) | 0.02 | (0.02 | ) | (0.34 | ) | 0.03 | (0.31 | ) | (0.64 | ) | 0.02 | (0.62 | ) | (0.14 | ) | (0.09 | ) | (0.23 | ) | ||||||||||||||||||||||||
| Net operating income, excluding reportable catastrophes, per diluted share^(1)^ | $ | 2.26 | **** | $ | (0.20 | ) | $ | 2.06 | **** | $ | 2.85 | **** | $ | (0.26 | ) | $ | 2.59 | **** | $ | 2.90 | **** | $ | (0.24 | ) | $ | 2.66 | **** | $ | 2.84 | **** | $ | (0.23 | ) | $ | 2.61 | **** | $ | 10.80 | **** | $ | (0.92 | ) | $ | 9.88 | **** | $ | 9.21 | **** | $ | (0.97 | ) | $ | 8.24 | **** |
| (1) | Refer to page 1 for additional information on the share counts used in the per share calculations.<br> | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (2) | As reported, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$27.5 million pre-tax ($21.7 million after-tax), $16.5 million pre-tax ($13.0 million after-tax) and $36.4 million pre-tax ($28.8 million after-tax) and net unrealized losses of $96.4 million pre-tax ($76.1 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As reported, Twelve Months 2020 and Twelve Months 2019 included net unrealized losses of $16.0 million pre-tax ($12.6 million after-tax) and net unrealized gains<br>of $34.6 million pre-tax ($27.3 million after-tax), respectively, from changes in the fair value of our equity securities and our collateralized loan obligations. As adjusted, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$22.5 million pre-tax ($17.8 million after-tax), $12.7 million pre-tax ($10.0 million after-tax) and $30.6 million pre-tax ($24.2 million after-tax) and net unrealized losses of $83.1 million pre-tax ($65.6 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As adjusted, Twelve Months 2020 and Twelve Months 2019 included net gains (losses) of ($17.3) million pre-tax (($13.7) million after-tax) and $31.4 million<br>pre-tax ($24.8 million after-tax), respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (3) | 4Q 2020 and 4Q 2019 include $14.9 million pre-tax ($11.8 million after-tax) and $26.7 million pre-tax ($21.1<br>million after-tax), respectively, of income related to the reduction of the valuation allowance on the Company’s Patient Protection and Affordable Health Care Act of 2010 (“ACA”) risk corridor program receivables. The reductions in<br>the allowance related to the Company’s 4Q 2019 entry into an agreement to sell its right to any future claim proceeds related to the associated receivables and the 4Q 2020 final settlement of the receivables. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (4) | 2Q 2020 includes a loss of $3.9 million pre-tax ($2.9 million after-tax) on the sale of the Company’s<br>interests in Iké. Twelve Months 2019 included a $163.0 million pre-tax ($163.9 million after-tax) loss related to the Company’s interests in Iké following a decline in fair value and commitment to a plan to sell such interests (of<br>which $38.4 million related to cumulative foreign currency losses recorded in other comprehensive income). The pre-tax loss includes an increase in liability related to the Company’s obligation to acquire the remainder of Iké from the<br>majority shareholders of $84.7 million and an other-than-temporary impairment loss on the Company’s 40% ownership interest in Iké of $78.3 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (5) | In connection with the debt offering, tender offer and debt redemption in 3Q 2019, the Company recorded a $31.4<br>million pre-tax loss on extinguishment of debt; $3.0 million pre-tax amortization of premium for derivative transactions purchased in anticipation of the debt issuance, which were ultimately not exercised (included in interest expense); $2.6 million<br>pre-tax loss on the termination of the interest rate swap and related derivative transactions associated with the portion of floating rate senior notes due March 2021 that were redeemed (included in interest expense); and $0.4 million pre-tax of<br>expenses related to the debt redemption (included in underwriting, general and administrative expenses). Total loss on extinguishment of debt and other related costs was $37.4 million pre-tax ($29.6 million after-tax). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (6) | 4Q 2020, 3Q 2020, 2Q 2020, 1Q 2020, included $(2.2) million, $(1.3) million, $(2.0) million, $(2.0) million of<br>net losses, respectively, from foreign exchange related to the remeasurement of net monetary assets in Argentina as a result of the classification of Argentina’s economy as highly inflationary beginning July 1, 2018. Twelve Months 2020 and<br>Twelve Months 2019 included net losses of $7.5 million and $18.2 million, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (7) | As reported, 3Q 2020 included (1) a net gain of $18.3 million pre-tax ($14.5<br>million after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million<br>pre-tax ($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As reported, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million<br>after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 4Q 2020 included (1) a net gain of $0.7 million pre-tax ($0.6 million after-tax) from the sale of our CLO asset management platform and<br>(2) additional exit related expenses of $0.8 million pre-tax ($0.6 million after-tax) associated with the sale of the CLO asset management platform. As adjusted, 3Q 2020 included (1) a net gain of $17.6 million pre-tax ($13.9 million<br>after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million pre-tax<br>($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. As adjusted, 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million after-tax) of<br>expenses related to the outsourcing of our real estate management. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| --- | --- |
Regulation G – Non GAAP Financial Measures
(7) Corporate and Other Net Operating Loss: Assurant uses Corporate and Other net operating loss as an important measure of the corporate segment’s performance. Corporate and Other net operating loss equals Corporate and Other segment net loss from continuing operations, excluding the Global Preneed goodwill impairment, interest expense, net realized gains (losses) on investments (which includes unrealized gains (losses) on equity securities and changes in fair value of direct investments in collateralized loan obligations), COVID-19 direct and incremental expenses, the CARES Act tax benefit, foreign exchange gains (losses) from remeasurement of monetary assets and liabilities, the net charge related to Iké, as well as other highly variable or unusual items other than reportable catastrophes. The Company believes Corporate and Other net operating loss provides investors a valuable measure of the performance of the Company’s corporate segment because it excludes highly variable items that do not represent the ongoing results of the Company’s corporate segment. The comparable GAAP measure is Corporate and Other segment net loss from continuing operations. In this financial supplement, net income from continuing operations refers to adjusted net income from continuing operations to reflect the reporting of Global Preneed and its related legal entities as discontinued operations beginning with first quarter 2021.
| ($ in millions) | 2020 | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | Reported | Impact ofDiscontinuedOperations | Adjusted | |||||||||||||||||||||||||||||||||||||
| GAAP Corporate and Other segment net loss from continuing operations | $ | (18.8 | ) | $ | (11.1 | ) | $ | (29.9 | ) | $ | (163.4 | ) | $ | 131.7 | **** | $ | (31.7 | ) | $ | (42.5 | ) | $ | — | **** | $ | (42.5 | ) | $ | (51.6 | ) | $ | 5.1 | **** | $ | (46.5 | ) | $ | (276.3 | ) | $ | 125.7 | **** | $ | (150.6 | ) | $ | (333.4 | ) | $ | (28.2 | ) | $ | (361.6 | ) |
| Adjustments, pre-tax: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net realized (gains) losses on<br>investments^(1)^ | (38.3 | ) | 8.7 | (29.6 | ) | (16.5 | ) | (0.6 | ) | (17.1 | ) | (24.1 | ) | (4.8 | ) | (28.9 | ) | 96.3 | (11.3 | ) | 85.0 | 17.4 | (8.0 | ) | 9.4 | (66.3 | ) | 9.3 | (57.0 | ) | ||||||||||||||||||||||||
| Global Preneed goodwill impairment | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | — | — | — | 137.8 | (137.8 | ) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| COVID-19 direct and incremental expenses | 5.3 | — | 5.3 | (0.4 | ) | — | (0.4 | ) | 19.2 | (0.3 | ) | 18.9 | 3.1 | (0.1 | ) | 3.0 | 27.2 | (0.4 | ) | 26.8 | — | — | — | |||||||||||||||||||||||||||||||
| CARES Act tax benefit (after-tax) | — | — | — | — | — | — | (5.1 | ) | — | (5.1 | ) | (79.3 | ) | — | (79.3 | ) | (84.4 | ) | — | (84.4 | ) | — | — | — | ||||||||||||||||||||||||||||||
| Interest expense | 26.8 | — | 26.8 | 25.3 | — | 25.3 | 25.3 | — | 25.3 | 25.5 | — | 25.5 | 102.9 | — | 102.9 | 105.0 | — | 105.0 | ||||||||||||||||||||||||||||||||||||
| Assurant Health runoff operations^(2)^ | (15.5 | ) | — | (15.5 | ) | (0.5 | ) | — | (0.5 | ) | (0.2 | ) | — | (0.2 | ) | 0.1 | — | 0.1 | (16.1 | ) | — | (16.1 | ) | (28.0 | ) | — | (28.0 | ) | ||||||||||||||||||||||||||
| Net charge related to Iké^(3)^ | — | — | — | — | — | — | 4.5 | — | 4.5 | 1.4 | — | 1.4 | 5.9 | — | 5.9 | 163.0 | — | 163.0 | ||||||||||||||||||||||||||||||||||||
| Loss on extinguishment of debt and other related<br>costs^(4)^ | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 37.4 | — | 37.4 | ||||||||||||||||||||||||||||||||||||
| Other adjustments^(5)^ | 12.3 | 2.0 | 14.3 | (3.6 | ) | 2.7 | (0.9 | ) | 0.7 | 2.6 | 3.3 | 9.5 | 1.9 | 11.4 | 18.9 | 9.2 | 28.1 | 60.7 | 15.7 | 76.4 | ||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 5.3 | (3.3 | ) | 2.0 | (2.2 | ) | 1.8 | (0.4 | ) | (4.7 | ) | 0.6 | (4.1 | ) | (24.5 | ) | 2.1 | (22.4 | ) | (26.1 | ) | 1.2 | (24.9 | ) | (24.0 | ) | (5.3 | ) | (29.3 | ) | ||||||||||||||||||||||||
| Total adjustments, after-tax | (4.1 | ) | 7.4 | 3.3 | 139.9 | (133.9 | ) | 6.0 | 15.6 | (1.9 | ) | 13.7 | 32.1 | (7.4 | ) | 24.7 | 183.5 | (135.8 | ) | 47.7 | 247.8 | 19.7 | 267.5 | |||||||||||||||||||||||||||||||
| Net loss (income) attributable to non-controlling interests | 0.2 | — | 0.2 | 0.3 | — | 0.3 | (0.3 | ) | — | (0.3 | ) | (1.1 | ) | — | (1.1 | ) | (0.9 | ) | — | (0.9 | ) | (4.2 | ) | — | (4.2 | ) | ||||||||||||||||||||||||||||
| Corporate and Other net operating loss | $ | (22.9 | ) | $ | (3.7 | ) | $ | (26.6 | ) | $ | (23.5 | ) | $ | (2.2 | ) | $ | (25.7 | ) | $ | (26.9 | ) | $ | (1.9 | ) | $ | (28.8 | ) | $ | (19.5 | ) | $ | (2.3 | ) | $ | (21.8 | ) | $ | (92.8 | ) | $ | (10.1 | ) | $ | (102.9 | ) | $ | (85.6 | ) | $ | (8.5 | ) | $ | (94.1 | ) |
| (1) | As reported, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$27.5 million pre-tax ($21.7 million after-tax), $16.5 million pre-tax ($13.0 million after-tax) and $36.4 million pre-tax ($28.8 million after-tax) and net unrealized losses of $96.4 million pre-tax ($76.1 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As reported, Twelve Months 2020 and Twelve Months 2019 included net unrealized losses of $16.0 million pre-tax ($12.6 million after-tax) and net unrealized gains<br>of $34.6 million pre-tax ($27.3 million after-tax), respectively, from changes in the fair value of our equity securities and our collateralized loan obligations. As adjusted, 4Q 2020, 3Q 2020, 2Q 2020 and 1Q 2020 included net unrealized gains of<br>$22.5 million pre-tax ($17.8 million after-tax), $12.7 million pre-tax ($10.0 million after-tax) and $30.6 million pre-tax ($24.2 million after-tax) and net unrealized losses of $83.1 million pre-tax ($65.6 million after-tax), respectively, from<br>changes in fair value of our equity securities and our collateralized loan obligations. As adjusted, Twelve Months 2020 and Twelve Months 2019 included net gains (losses) of ($17.3) million pre-tax (($13.7) million after-tax) and $31.4 million<br>pre-tax ($24.8 million after-tax), respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (2) | 4Q 2020 and 4Q 2019 include $14.9 million pre-tax ($11.8 million after-tax) and $26.7 million pre-tax ($21.1<br>million after-tax), respectively, of income related to the reduction of the valuation allowance on the Company’s Patient Protection and Affordable Health Care Act of 2010 (“ACA”) risk corridor program receivables. The reductions in<br>the allowance related to the Company’s 4Q 2019 entry into an agreement to sell its right to any future claim proceeds related to the associated receivables and the 4Q 2020 final settlement of the receivables. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (3) | 2Q 2020 includes a loss of $3.9 million pre-tax ($2.9 million after-tax) on the sale of the Company’s<br>interests in Iké. Twelve Months 2019 included a $163.0 million pre-tax ($163.9 million after-tax) loss related to the Company’s interests in Iké following a decline in fair value and commitment to a plan to sell such interests (of<br>which $38.4 million related to cumulative foreign currency losses recorded in other comprehensive income). The pre-tax loss includes an increase in liability related to the Company’s obligation to acquire the remainder of Iké from the<br>majority shareholders of $84.7 million and an other-than-temporary impairment loss on the Company’s 40% ownership interest in Iké of $78.3 million. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (4) | In connection with the debt offering, tender offer and debt redemption in 3Q 2019, the Company recorded a $31.4<br>million pre-tax loss on extinguishment of debt; $3.0 million pre-tax amortization of premium for derivative transactions purchased in anticipation of the debt issuance, which were ultimately not exercised (included in interest expense); $2.6 million<br>pre-tax loss on the termination of the interest rate swap and related derivative transactions associated with the portion of floating rate senior notes due March 2021 that were redeemed (included in interest expense); and $0.4 million pre-tax of<br>expenses related to the debt redemption (included in underwriting, general and administrative expenses). Total loss on extinguishment of debt and other related costs was $37.4 million pre-tax ($29.6 million after-tax). | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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| (5) | As reported, 3Q 2020 included (1) a net gain of $18.3 million pre-tax ($14.5<br>million after-tax) from the sale of our CLO asset management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million<br>pre-tax ($2.2 million after-tax) of expenses related to the outsourcing of our real estate management. 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million after-tax) of<br>expenses related to the outsourcing of our real estate management. As adjusted, 4Q 2020 included (1) a net gain of $0.7 million pre-tax ($0.6 million after-tax) from the sale of our CLO asset management platform and (2) additional exit<br>related expenses of $0.8 million pre-tax ($0.6 million after-tax) associated with the sale of the CLO asset management platform. 3Q 2020 included (1) a net gain of $17.6 million pre-tax ($13.9 million after-tax) from the sale of our CLO asset<br>management platform, (2) additional exit related expenses of $6.1 million pre-tax ($4.8 million after-tax) associated with the sale of the CLO asset management platform and (3) $2.8 million pre-tax ($2.2 million after-tax) of expenses<br>related to the outsourcing of our real estate management. 2Q 2020 included exit related expenses of $1.4 million pre-tax ($1.1 million after-tax) and $0.2 million pre-tax ($0.2 million after-tax) of expenses related to the outsourcing of our real<br>estate management. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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Regulation G – Non GAAP Financial Measures ****
(8) Segment Adjusted EBITDA: Assurant uses segment Adjusted EBITDA as an important measure of the segment’s underlying profitability. Segment Adjusted EBITDA is defined as segment net operating income (loss) (which is defined above for Corporate and Other and is equal to the segment GAAP net income for Global Lifestyle and Global Housing), excluding interest expense, provision (benefit) for income taxes, depreciation expense and amortization of purchased intangible assets. Amortization of purchased intangible assets is excluded from this non-GAAP measure of performance because the Company believes it (i) enhances management’s and investors’ ability to analyze the ongoing operations of our businesses and (ii) facilitates comparisons of our operating performance over multiple periods, as the amortization expense associated with purchased intangible assets may fluctuate from period to period based on the timing, size, nature and number of acquisitions. Although we exclude amortization of purchased intangible assets from Adjusted EBITDA, revenue generated from such intangible assets is included within the revenue in determining Adjusted EBITDA. The Company believes segment Adjusted EBITDA provides investors with a valuable measure of the segment’s performance, including underlying profitability and ongoing operations, and reflects its ongoing shift to more service-oriented, fee-based businesses. The comparable GAAP measure is segment net income from continuing operations. In this financial supplement, net income from continuing operations refers to adjusted net income from continuing operations to reflect the reporting of Global Preneed and its related legal entities as discontinued operations beginning with first quarter 2021.
Refer to pages 5, 6 and 7 for a reconciliation of segment Adjusted EBITDA to segment net income from continuing operations for Global Lifestyle, Global Housing and Corporate and Other, respectively.
(9) Line of Business Adjusted EBITDA: Assurant uses the Global Lifestyle lines of business Adjusted EBITDA as an important measure of the line of business’s underlying profitability. Line of business Adjusted EBITDA is defined as line of business net income from continuing operations, excluding provision for income taxes, depreciation expense and amortization of purchased intangible assets. Amortization of purchased intangible assets is excluded from this non-GAAP measure of performance because the Company believes it (i) enhances management’s and investors’ ability to analyze the ongoing operations of our businesses and (ii) facilitates comparisons of our operating performance over multiple periods, as the amortization expense associated with purchased intangible assets may fluctuate from period to period based on the timing, size, nature and number of acquisitions. Although we exclude amortization of purchased intangible assets from Adjusted EBITDA, revenue generated from such intangible assets is included within the revenue in determining Adjusted EBITDA. The Company believes line of business Adjusted EBITDA provides investors with a valuable measure of the line of business’s performance, including underlying profitability and ongoing operations, and reflects its ongoing shift to more service-oriented, fee-based businesses. The comparable GAAP measure is line of business net operating income, which is equal to the line of business GAAP net income.
| ($ in millions) | 2020 | Twelve Months Ended December 31, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 4Q | 3Q | 2Q | 1Q | 2020 | 2019 | |||||||
| Connected Living | ||||||||||||
| Net operating income^(1)^ | $ | 42.5 | $ | 66.8 | $ | 81.4 | $ | 74.6 | $ | 265.3 | $ | 232.9 |
| Less: | ||||||||||||
| Provision for income taxes | 11.9 | 16.3 | 24.5 | 23.5 | 76.2 | 68.6 | ||||||
| Depreciation expense | 6.5 | 4.9 | 5.3 | 4.7 | 21.4 | 18.8 | ||||||
| Amortization of purchased intangible assets | 7.6 | 3.7 | 3.3 | 3.4 | 18.0 | 15.0 | ||||||
| Adjusted EBITDA | $ | 68.5 | $ | 91.7 | $ | 114.5 | $ | 106.2 | $ | 380.9 | $ | 335.3 |
| Global Automotive | ||||||||||||
| Net operating income^(1)^ | $ | 40.1 | $ | 39.6 | $ | 39.8 | $ | 40.0 | $ | 159.5 | $ | 152.7 |
| Less: | ||||||||||||
| Provision for income taxes | 11.2 | 10.0 | 11.9 | 12.6 | 45.7 | 48.4 | ||||||
| Depreciation expense | 1.5 | 1.7 | 0.9 | 0.5 | 4.6 | 1.1 | ||||||
| Amortization of purchased intangible assets | 6.2 | 6.0 | 6.1 | 5.0 | 23.3 | 12.1 | ||||||
| Adjusted EBITDA | $ | 59.0 | $ | 57.3 | $ | 58.7 | $ | 58.1 | $ | 233.1 | $ | 214.3 |
| Global Financial Services and Other | ||||||||||||
| Net operating income^(1)^ | $ | 5.3 | $ | 0.2 | $ | 0.6 | $ | 6.3 | $ | 12.4 | $ | 23.7 |
| Less: | ||||||||||||
| Provision for income taxes | 3.0 | — | 0.1 | 2.1 | 5.2 | 9.2 | ||||||
| Depreciation expense | 0.9 | 0.9 | 1.0 | 0.7 | 3.5 | 2.4 | ||||||
| Amortization of purchased intangible assets | 0.5 | 0.5 | 0.5 | 0.4 | 1.9 | 1.7 | ||||||
| Adjusted EBITDA | $ | 9.7 | $ | 1.6 | $ | 2.2 | $ | 9.5 | $ | 23.0 | $ | 37.0 |
| (1) | The net operating income of Connected Living, Global Automotive and Global Financial Services and Other is<br>equal to GAAP net income. | |||||||||||
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