Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity Registrant Name | Assurant, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-31978 | |
Entity Tax Identification Number | 39-1126612 | |
Entity Address, Address Line One | 28 Liberty Street | |
Entity Address, Address Line Two | 41st Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10005 | |
City Area Code | 212 | |
Local Phone Number | 859-7000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 58,759,191 | |
Entity Central Index Key | 0001267238 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | AIZ | |
Security Exchange Name | NYSE | |
Convertible Preferred Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 6.50% Series D Mandatory Convertible Preferred Stock, $1.00 Par Value | |
Trading Symbol | AIZP | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Investments: | |||
Fixed maturity securities available for sale, at fair value (net of allowances for credit losses of $1.5 at September 30, 2020; amortized cost - $11,379.3 and $11,064.8 at September 30, 2020 and December 31, 2019, respectively) | $ 13,094.5 | $ 12,322.4 | |
Equity securities at fair value | 384.4 | 388.5 | |
Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $6.9 at September 30, 2020) | 771.1 | 815 | |
Short-term investments | 250 | 402.5 | |
Other investments (net of allowances for credit losses of $1.4 at September 30, 2020) | 705.9 | 638.9 | |
Total investments | 15,205.9 | 14,567.3 | |
Cash and cash equivalents | 2,203 | 1,867.1 | |
Premiums and accounts receivable (net of allowances for credit losses of $15.9 at September 30, 2020) | 1,576.7 | 1,692.8 | |
Reinsurance recoverables (net of allowances for credit losses of $25.5 at September 30, 2020) | 9,796.2 | 9,593.4 | |
Accrued investment income | 133 | 131.1 | |
Deferred acquisition costs | 7,405.5 | 6,668 | |
Property and equipment, net | 468.4 | 433.7 | |
Goodwill | 2,325.8 | 2,343.4 | |
Value of business acquired | 1,339.8 | 2,004.3 | |
Other intangible assets, net | 581.8 | 540.2 | |
Other assets (net of allowances for credit losses of $1.8 at September 30, 2020) | 540.4 | 590.1 | |
Assets held in separate accounts | 2,006.1 | 1,839.7 | |
Total assets | 43,582.6 | 44,291.2 | |
Liabilities | |||
Future policy benefits and expenses | 9,907.4 | 9,807.3 | |
Unearned premiums | 17,116.6 | 16,603.6 | |
Claims and benefits payable | 2,758.2 | 2,687.7 | |
Commissions payable | 547 | 540.5 | |
Reinsurance balances payable | 435.4 | 358.5 | |
Funds held under reinsurance | 361.2 | 319.4 | |
Accounts payable and other liabilities | 2,502.1 | 2,758.5 | |
Debt | 2,008.6 | 2,006.9 | |
Liabilities related to separate accounts | 2,006.1 | 1,839.7 | |
Total liabilities | 37,642.6 | 38,609.1 | |
Commitments and contingencies (Note 21) | |||
Stockholders’ equity | |||
6.50% Series D mandatory convertible preferred stock, par value $1.00 per share, 2,875,000 shares authorized, issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 2.9 | 2.9 | |
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 162,051,167 and 161,607,866 shares issued and 59,076,751 and 59,945,893 shares outstanding at September 30, 2020 and December 31, 2019, respectively | 1.6 | 1.6 | |
Additional paid-in capital | 4,568.2 | 4,537.7 | |
Retained earnings | 6,126 | 5,966.4 | |
Accumulated other comprehensive income | 658.2 | 411.5 | |
Treasury stock, at cost; 102,974,416 and 101,661,973 shares at September 30, 2020 and December 31, 2019, respectively | (5,420.5) | (5,267.3) | |
Total Assurant, Inc. stockholders’ equity | 5,936.4 | 5,652.8 | |
Non-controlling interests | 3.6 | 29.3 | |
Total equity | 5,940 | 5,682.1 | |
Total liabilities and equity | 43,582.6 | 44,291.2 | |
Consolidated investment entities | |||
Investments: | |||
Cash and cash equivalents | 32.9 | ||
Total assets | [1] | 0 | 2,020.1 |
Liabilities | |||
Total liabilities | [1] | $ 0 | $ 1,687 |
[1] | The following table presents information on assets and liabilities related to consolidated investment entities as of December 31, 2019. During the third quarter of 2020, the Company sold its collateralized loan obligation asset management platform and outsourced its real estate asset management, which resulted in the deconsolidation of the consolidated investment entities. Refer to Notes 5 and 12 for additional information. December 31, 2019 Assets Cash and cash equivalents $ 32.9 Investments, at fair value 1,957.9 Other receivables 29.3 Total assets $ 2,020.1 Liabilities Collateralized loan obligation notes, at fair value 1,603.1 Other liabilities 83.9 Total liabilities $ 1,687.0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | ||
Assets | |||
Cash and cash equivalents | $ 2,203 | $ 1,867.1 | |
Total assets | 43,582.6 | 44,291.2 | |
Liabilities | |||
Total liabilities | 37,642.6 | 38,609.1 | |
Fixed maturity securities available for sale, allowances for credit losses | (1.5) | ||
Fixed maturity securities available for sale, amortized cost | 11,379.3 | 11,064.8 | |
Commercial mortgage loans on real estate, allowances for expected credit losses | 6.9 | 0.6 | |
Other investments, allowances for credit losses | 1.4 | ||
Premiums and accounts receivable, allowances for expected credit losses | 15.9 | 15.3 | |
Reinsurance recoverables, allowances for expected credit losses | 25.5 | $ 2.8 | |
Other assets, allowances for credit losses | $ 1.8 | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |
Common stock, shares, issued (in shares) | 162,051,167 | 161,607,866 | |
Common stock, shares outstanding (in shares) | 59,076,751 | 59,945,893 | |
Treasury stock, at cost (in shares) | 102,974,416 | 101,661,973 | |
Series D Preferred Stock | |||
Liabilities | |||
Share interest rate | 6.50% | 6.50% | |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, shares authorized (in shares) | 2,875,000 | 2,875,000 | |
Preferred stock, shares issued (in shares) | 2,875,000 | 2,875,000 | |
Preferred stock, shares outstanding (in shares) | 2,875,000 | 2,875,000 | |
Consolidated investment entities | |||
Assets | |||
Cash and cash equivalents | $ 32.9 | ||
Investments, at fair value | 1,957.9 | ||
Other receivables | 29.3 | ||
Total assets | [1] | $ 0 | 2,020.1 |
Liabilities | |||
Collateralized loan obligation notes, at fair value | 1,603.1 | ||
Other liabilities | 83.9 | ||
Total liabilities | [1] | $ 0 | $ 1,687 |
[1] | The following table presents information on assets and liabilities related to consolidated investment entities as of December 31, 2019. During the third quarter of 2020, the Company sold its collateralized loan obligation asset management platform and outsourced its real estate asset management, which resulted in the deconsolidation of the consolidated investment entities. Refer to Notes 5 and 12 for additional information. December 31, 2019 Assets Cash and cash equivalents $ 32.9 Investments, at fair value 1,957.9 Other receivables 29.3 Total assets $ 2,020.1 Liabilities Collateralized loan obligation notes, at fair value 1,603.1 Other liabilities 83.9 Total liabilities $ 1,687.0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues | ||||
Net earned premiums | $ 2,102.8 | $ 2,015.4 | $ 6,223 | $ 5,952.5 |
Fees and other income | 245.9 | 295.1 | 934.3 | 959.5 |
Net investment income | 135.1 | 169.5 | 428.3 | 490 |
Net realized gains (losses) on investments (including $(1.5), $(0.2), $(14.6), and $(1.1) of impairment losses for the three and nine months ended September 30, 2020 and 2019, respectively) | 16.6 | 14.9 | (54.6) | 61.5 |
Amortization of deferred gains on disposal of businesses | 2.1 | 4.4 | 8.7 | 16.9 |
Total revenues | 2,502.5 | 2,499.3 | 7,539.7 | 7,480.4 |
Benefits, losses and expenses | ||||
Policyholder benefits | 709.6 | 705.2 | 1,908.9 | 2,006.9 |
Amortization of deferred acquisition costs and value of business acquired | 946.2 | 869.5 | 2,745.7 | 2,462.6 |
Underwriting, general and administrative expenses | 687.5 | 764.5 | 2,331.8 | 2,388.1 |
Goodwill impairment (Note 6) | 137.8 | 0 | 137.8 | 0 |
Iké net losses | 0 | 121.1 | 5.9 | 130.5 |
Interest expense | 25.5 | 32.2 | 77.7 | 85.2 |
Loss on extinguishment of debt | 0 | 31.4 | 0 | 31.4 |
Total benefits, losses and expenses | 2,506.6 | 2,523.9 | 7,207.8 | 7,104.7 |
(Loss) income before provision for income taxes | (4.1) | (24.6) | 331.9 | 375.7 |
Provision for income taxes | 26.4 | 28.6 | 28.2 | 117.7 |
Net (loss) income | (30.5) | (53.2) | 303.7 | 258 |
Less: Net loss (income) attributable to non-controlling interests | 0.3 | (1.6) | (1.1) | (3) |
Net (loss) income attributable to stockholders | (30.2) | (54.8) | 302.6 | 255 |
Less: Preferred stock dividends | (4.7) | (4.7) | (14) | (14) |
Net (loss) income attributable to common stockholders | $ (34.9) | $ (59.5) | $ 288.6 | $ 241 |
Earnings Per Common Share | ||||
Basic (in dollars per share) | $ (0.58) | $ (0.96) | $ 4.78 | $ 3.88 |
Diluted (in dollars per share) | $ (0.58) | $ (0.96) | $ 4.76 | $ 3.86 |
Share Data | ||||
Weighted average common shares outstanding used in basic per common share calculations (in shares) | 60,190,103 | 61,804,492 | 60,384,817 | 62,204,242 |
Plus: Dilutive securities (in shares) | 0 | 0 | 256,128 | 256,003 |
Weighted average common shares used in diluted earnings per common share calculations (in shares) | 60,190,103 | 61,804,492 | 60,640,945 | 62,460,245 |
Impairment losses | $ (1.5) | $ (0.2) | $ (14.6) | $ (1.1) |
Consolidated Statements of Op_2
Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Impairment losses | $ (1.5) | $ (0.2) | $ (14.6) | $ (1.1) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net (loss) income | $ (30.5) | $ (53.2) | $ 303.7 | $ 258 | |
Other comprehensive income (loss): | |||||
Change in unrealized gains on investments, net of taxes of $(12.3), $(28.5), $(53.7) and $(157.5) for the three and nine months ended September 30, 2020 and 2019, respectively | 54.1 | 97.4 | 186.7 | 574.8 | |
Change in unrealized gains on derivative transactions, net of taxes of $0.2, $0.2, $0.5 and $0.5 for the three and nine months ended September 30, 2020 and 2019, respectively | (0.6) | 2.7 | (1.8) | (0.5) | |
Change in credit related impairment losses, net of taxes of $(0.3) for the three and nine months ended September 30, 2020 | 1.2 | 0 | 1.2 | 0 | |
Change in non-credit related impairment losses, net of taxes of $(0.4), $(0.1), $(0.1) and $(0.2) for the three and nine months ended September 30, 2020 and 2019, respectively | 1.5 | 0.2 | 0.3 | 0.7 | |
Change in foreign currency translation, net of taxes of $(1.5), $0.8, $4.2 and $(0.6) for the three and nine months ended September 30, 2020 and 2019, respectively | 35.3 | (23.6) | 15.2 | (14.6) | |
Change in pension and postretirement unrecognized net periodic benefit cost, net of taxes of $0.5, $(0.1), ($12.6) and $(0.1) for the three and six months ended June 30, 2020 and 2019, respectively | [1] | (2.2) | (0.2) | 45.1 | 0.2 |
Total other comprehensive income | 89.3 | 76.5 | 246.7 | 560.6 | |
Total comprehensive income | 58.8 | 23.3 | 550.4 | 818.6 | |
Less: Comprehensive loss (income) attributable to non-controlling interests | 0.3 | (1.6) | (1.1) | (3) | |
Total comprehensive income attributable to stockholders | $ 59.1 | $ 21.7 | $ 549.3 | $ 815.6 | |
[1] | Change in nine months ended September 30, 2020 includes the prior service credit resulting from the February 2020 amendment of the Retirement Health Benefits plan. Refer to Note 20 for further information. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in unrealized gains on securities, tax | $ (12.3) | $ (28.5) | $ (53.7) | $ (157.5) |
Change in unrealized gains on derivative transactions, tax | 0.2 | 0.2 | 0.5 | 0.5 |
Change in credit related impairment losses, tax | (0.3) | (0.3) | ||
Change in non-credit related impairment losses, tax | (0.4) | (0.1) | (0.1) | (0.2) |
Change in foreign currency transaction, tax | (1.5) | 0.8 | 4.2 | (0.6) |
Change in pension and postretirement unrecognized net periodic benefit cost, tax | $ 0.6 | $ 0 | $ (12) | $ (0.1) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (unaudited) - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Non-controlling Interests | Cumulative Effect, Period of Adoption, Adjustment | [1] | Cumulative Effect, Period of Adoption, AdjustmentRetained Earnings | [1] |
Beginning balance at Dec. 31, 2018 | $ 5,133.9 | $ 2.9 | $ 1.6 | $ 4,495.6 | $ 5,759.7 | $ (155.4) | $ (4,992.4) | $ 21.9 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock plan issuances | 7.1 | 7.1 | ||||||||||
Stock plan compensation expense | 40.7 | 40.7 | ||||||||||
Common stock dividends | (113) | (113) | ||||||||||
Acquisition of common stock | (185) | (18.9) | (166.1) | |||||||||
Net loss | 258 | 255 | 3 | |||||||||
Preferred stock dividends | (14) | (14) | ||||||||||
Change in equity of non-controlling interests | 2.1 | (4.8) | 6.9 | |||||||||
Other comprehensive income | 560.6 | 560.6 | ||||||||||
Ending balance at Sep. 30, 2019 | 5,690.4 | 2.9 | 1.6 | 4,524.5 | 5,882.9 | 405.2 | (5,158.5) | 31.8 | ||||
Beginning balance at Jun. 30, 2019 | 5,760.3 | 2.9 | 1.6 | 4,509.2 | 5,980.9 | 328.7 | (5,093.1) | 30.1 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock plan issuances | 3.6 | 3.6 | ||||||||||
Stock plan compensation expense | 15 | 15 | ||||||||||
Common stock dividends | (37.3) | (37.3) | ||||||||||
Acquisition of common stock | (68.7) | (3.3) | (65.4) | |||||||||
Net loss | (53.2) | (54.8) | 1.6 | |||||||||
Preferred stock dividends | (4.7) | (4.7) | ||||||||||
Change in equity of non-controlling interests | (1.1) | (1.2) | 0.1 | |||||||||
Other comprehensive income | 76.5 | 76.5 | ||||||||||
Ending balance at Sep. 30, 2019 | 5,690.4 | 2.9 | 1.6 | 4,524.5 | 5,882.9 | 405.2 | (5,158.5) | 31.8 | ||||
Beginning balance at Dec. 31, 2019 | $ 5,682.1 | 2.9 | 1.6 | 4,537.7 | 5,966.4 | 411.5 | (5,267.3) | 29.3 | $ (20.4) | $ (20.4) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||||
Stock plan issuances | $ 8.6 | 8.6 | ||||||||||
Stock plan compensation expense | 41.9 | 41.9 | ||||||||||
Common stock dividends | (115.1) | (115.1) | ||||||||||
Acquisition of common stock | (172.5) | (19.3) | (153.2) | |||||||||
Net loss | 303.7 | 302.6 | 1.1 | |||||||||
Preferred stock dividends | (14) | (14) | ||||||||||
Change in equity of non-controlling interests | (18.7) | 6.5 | (25.2) | |||||||||
Acquisition of non-controlling interests | (2.3) | (0.7) | (1.6) | |||||||||
Other comprehensive income | 246.7 | 246.7 | ||||||||||
Ending balance at Sep. 30, 2020 | 5,940 | 2.9 | 1.6 | 4,568.2 | 6,126 | 658.2 | (5,420.5) | 3.6 | ||||
Beginning balance at Jun. 30, 2020 | 5,984.5 | 2.9 | 1.6 | 4,550.4 | 6,194.4 | 568.9 | (5,350.4) | 16.7 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock plan issuances | 4.7 | 4.7 | ||||||||||
Stock plan compensation expense | 15.5 | 15.5 | ||||||||||
Common stock dividends | (37.5) | (37.5) | ||||||||||
Acquisition of common stock | (71.8) | (1.7) | (70.1) | |||||||||
Net loss | (30.5) | (30.2) | (0.3) | |||||||||
Preferred stock dividends | (4.7) | (4.7) | ||||||||||
Change in equity of non-controlling interests | (7.2) | 4 | (11.2) | |||||||||
Acquisition of non-controlling interests | (2.3) | (0.7) | (1.6) | |||||||||
Other comprehensive income | 89.3 | 89.3 | ||||||||||
Ending balance at Sep. 30, 2020 | $ 5,940 | $ 2.9 | $ 1.6 | $ 4,568.2 | $ 6,126 | $ 658.2 | $ (5,420.5) | $ 3.6 | ||||
[1] | Amount relates to the adoption of a new accounting standard for accounting for expected credit losses for assets held at amortized cost, which established allowances for such expected credit losses as of January 1, 2020. Refer to Notes 3 and 7 for additional information. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (usd per share) | $ 0.63 | $ 0.60 | $ 1.89 | $ 1.80 |
Preferred stock dividends (usd per share) | $ 1.63 | $ 1.63 | $ 4.88 | $ 4.88 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Statement of Cash Flows [Abstract] | |||
Net (loss) income attributable to stockholders | $ 302.6 | $ 255 | |
Noncash revenues, expenses, gains and losses included in income: | |||
Deferred tax expense | 172.1 | 40.6 | |
Amortization of deferred gains on disposal of businesses | (8.7) | (16.9) | |
Depreciation and amortization | 105.1 | 87.4 | |
Net realized losses (gains) on investments, including impairment losses | 54.6 | (61.5) | |
Loss on extinguishment of debt | 0 | 31.4 | |
Loss on sale of business | 0 | 9.6 | |
Stock based compensation expense | 41.9 | 40.7 | |
Other intangible asset impairment | 0 | 16.2 | |
Goodwill impairment | 137.8 | 0 | |
Ike related charges, net of derivative gains | [1] | 1.7 | 130.5 |
Changes in operating assets and liabilities: | |||
Change in insurance policy reserves and expenses | 825.9 | 1,393.2 | |
Change in premiums and accounts receivable | 102.8 | (138.8) | |
Change in commissions payable | 14.1 | 75.2 | |
Change in reinsurance recoverable | (154.5) | (259.5) | |
Change in reinsurance balance payable | 80.5 | 12.9 | |
Change in funds withheld under reinsurance | 42.6 | 13.4 | |
Change in deferred acquisition costs and value of business acquired | (418.3) | (685.1) | |
Change in taxes (receivable) payable | [2] | (33) | 63.8 |
Change in other assets and other liabilities | (371.5) | 163.6 | |
Other | 5.9 | (3.8) | |
Net cash provided by operating activities | 901.6 | 1,167.9 | |
Sales of: | |||
Fixed maturity securities available for sale | 489.2 | 1,730 | |
Equity securities | 21.4 | 85.3 | |
Other invested assets | 87.4 | 45.8 | |
Ike foreign currency hedge | [1] | 22 | 0 |
Maturities, calls, prepayments, and scheduled redemption of: | |||
Fixed maturity securities available for sale | 723.6 | 483.9 | |
Commercial mortgage loans on real estate | 38.5 | 41.7 | |
Purchases of: | |||
Fixed maturity securities available for sale | (1,543.7) | (2,434.1) | |
Equity securities | (27.9) | (81.8) | |
Commercial mortgage loans on real estate | (3) | (84.3) | |
Other invested assets | [3] | (78.6) | (33.4) |
Property and equipment and other | (81.1) | (70.5) | |
Subsidiaries, net of cash transferred | [4] | (166.1) | 0 |
Net cash outflow related to sale of interests in Iké and termination of put/call obligations | [1] | (73.3) | 0 |
Consolidated investment entities | |||
Purchases of investments | [5] | (353.1) | (1,163.1) |
Sale of investments | [5] | 550.2 | 754.4 |
Change in short-term investments | 118.9 | 108.5 | |
Other | 0.4 | 4 | |
Net cash used in investing activities | (275.2) | (613.6) | |
Financing activities | |||
Issuance of debt, net of issuance costs | 0 | 346.7 | |
Repayment of debt, including tender offer premium | 0 | (379.6) | |
Issuance of collateralized loan obligation notes | [5] | 0 | 404.8 |
Issuance of debt for consolidated investment entities | [5] | 0 | 189.1 |
Repayment of debt for consolidated investment entities | [5] | (1.2) | (318.7) |
Payment of contingent liability | 0 | (19.3) | |
Borrowings under secured revolving credit facility | 200 | 0 | |
Payments on secured revolving credit facility | (200) | 0 | |
Acquisition of common stock | (154.5) | (164.3) | |
Common stock dividends paid | (115.1) | (113) | |
Preferred stock dividends paid | (14) | (14) | |
Employee stock purchases and withholdings | (12) | 18.1 | |
Other | 0 | 0.1 | |
Net cash used in financing activities | (296.8) | (50.1) | |
Effect of exchange rate changes on cash and cash equivalents | 6.3 | (8.9) | |
Change in cash and cash equivalents | 335.9 | 495.3 | |
Cash and cash equivalents at beginning of period | 1,867.1 | 1,254 | |
Cash and cash equivalents at end of period | $ 2,203 | $ 1,749.3 | |
[1] | Relates to Iké disposition and related financing. Refer to Note 5 for additional information | ||
[2] | Includes receipt of the $204.9 million federal tax refund, which includes interest, related to the ability to carryback net operating losses to prior periods under the CARES Act. Refer to Note 8 for additional information. | ||
[3] | Includes loan to Iké Grupo. Refer to Note 5 for additional information. | ||
[4] | Consists of $175.4 million in cash consideration for the acquisition of American Financial & Automotive Services, Inc., net of $39.6 million of cash acquired, and $30.3 million in total cash consideration for three business acquisitions within the Global Lifestyle business. Refer to Note 4 for additional information. | ||
[5] | Relates to cash flows from the Company’s variable interest entities. Refer to Note 12 for additional information. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)acquisition | |
Business Acquisition [Line Items] | |
Proceeds from federal tax refunds, CAREs Act | $ 204.9 |
AFAS | |
Business Acquisition [Line Items] | |
Cash consideration for acquisition | 175.4 |
Cash acquired from acquisition | 39.6 |
Strategic Acquisition In Global Lifestyle Business | |
Business Acquisition [Line Items] | |
Cash consideration for acquisition | $ 30.3 |
Number of strategic acquisitions | acquisition | 3 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Assurant, Inc. (the “Company”) is a global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases. The Company partners with leading brands to develop innovative products and services and to deliver enhanced customer experience. The Company operates in North America, Latin America, Europe and Asia Pacific through three operating segments: Global Lifestyle, Global Housing and Global Preneed. Through its Global Lifestyle segment, the Company provides mobile device solutions and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance products (referred to as “Global Financial Services and Other”). Through its Global Housing segment, the Company provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”). Through its Global Preneed segment, the Company provides pre-funded funeral insurance, final need insurance and related services. The Company’s common stock is traded on the New York Stock Exchange under the symbol “AIZ”. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. The interim financial data as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019 is unaudited. In the opinion of management, the interim data includes all adjustments necessary for a fair statement of the results for the interim periods. The unaudited interim Consolidated Financial Statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current year presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Measurement of credit losses on financial instruments held at amortized cost (“CECL”) : In June 2016, the Financial Accounting Standards Board (“FASB”) issued amended guidance on reporting credit losses for assets held at amortized cost and available for sale debt securities (codified in the FASB Accounting Standards Codification Topic 326 (“ASC 326”)). For assets held at amortized cost, the amended guidance eliminates the probable recognition threshold and instead requires an entity to reflect the current estimate of all expected credit losses. For available for sale debt securities, credit losses are measured in a manner similar to accounting requirements in effect prior to adoption; however, the amended guidance requires that credit-related impairment losses be presented as an allowance rather than as a permanent impairment. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, premium receivables, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company adopted this standard as of January 1, 2020. Refer to Note 7 for additional information. Customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract: In August 2018, the FASB issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. For these arrangements, the guidance also limits the period to expense capitalized implementation costs based on the term of the hosting agreement, including the noncancelable period of the arrangement plus periods covered by options to extend the arrangement that are reasonably certain of exercise. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments. The Company adopted the guidance on its effective date of January 1, 2020 with no material impact on its financial position and results of operations. Not Yet Adopted Targeted improvements to the accounting for long-duration contracts : In August 2018, the FASB issued guidance that provides targeted improvements to the accounting for long-duration contracts. The guidance includes the following primary changes: assumptions supporting benefit reserves will no longer be locked-in but must be updated at least annually with the impact of changes to the liability reflected in earnings (except for discount rates); the discount rate assumptions will be based on the upper-medium grade (low credit risk) fixed-income instrument yield instead of the earnings rate of invested assets; the discount rate must be evaluated at each reporting date and the impact of changes to the liability estimate as a result of updating the discount rate assumption is required to be recognized in other comprehensive income; the provision for adverse deviation is eliminated; and premium deficiency testing is eliminated. Other noteworthy changes include the following: differing models for amortizing deferred acquisition costs will become uniform for all long-duration contracts based on a constant rate over the expected term of the related in-force contracts; all market risk benefits associated with deposit contracts must be reported at fair value with changes reflected in income except for changes related to credit risk which will be recognized in other comprehensive income; and disclosures will be expanded to include disaggregated roll forwards of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions and methods used in measurement. The guidance will be effective for the Company beginning January 1, 2022, including interim periods within that year. Early adoption is permitted. Generally, the amendments are applied retrospectively as of the beginning of the earliest period presented with two transition options available for changing the assumptions. In July 2020, the FASB issued a proposed accounting standards update that, if adopted, would extend the effective date of this guidance for the Company to January 1, 2023 (with early adoption permitted) and the application transition date would be January 1, 2022. This guidance will apply to the Company’s preneed life insurance policies, as well as its annuity and universal life products (which are no longer offered and are in run-off). The Company is evaluating the requirements of this guidance and the potential impact on the Company’s financial position and results of operations. Simplifying the Accounting for Income Taxes : In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard will be effective for the Company beginning on January 1, 2021, including interim periods within that year. Early adoption is permitted, including adoption in any interim period. The Company is evaluating the impact of adopting this new accounting guidance on the consolidated financial statements. Facilitation of the Effects of Reference Rate Reform on Financial Reporting: In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The relief is applicable only to legacy contracts if the amendments made to the agreements are solely for reference rate reform activities. The provisions must be applied consistently for all relevant transactions other than derivatives, which may be applied at a hedging relationship level. The guidance is effective upon issuance. The guidance on contract modifications is applied prospectively from any date beginning March 12, 2020. Unlike other topics, the provisions of this update are only available until December 31, 2022, when the reference rate replacement activity is expected to have been completed. As LIBOR is expected to be discontinued after 2021, the Company is evaluating the provisions of this new accounting guidance and the impact to debt, investments and derivatives that have references to LIBOR and the subsequent transition to alternative reference rates. Improvements to Convertible Instruments and Contracts in an Entity’s Own Equity : In August 2020, the FASB issued guidance that simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The guidance removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more contracts in an entity’s own equity to qualify for it. The guidance also simplifies the diluted earnings per common share (“EPS”) calculation in the areas of convertible instruments and instruments that qualify for the derivatives scope exception for contracts in an entity’s own equity to address accounting for the guidance changes to the classification, recognition and measurement. This guidance will be effective for the Company beginning January 1, 2022. Early adoption is permitted. The Company is evaluating the requirements of this guidance and the potential impact on its financial position and results of operations. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition American Financial & Automotive Services On May 1, 2020, the Company acquired American Financial & Automotive Services, Inc. (“AFAS”), a provider of auto finance and insurance products and services, including vehicle service contracts, guaranteed asset protection insurance and other ancillary products sold directly through a network of nearly 600 franchised dealership clients across 40 states. The total consideration was $176.9 million, comprised of a base purchase price of $157.5 million, contingent consideration of $1.5 million and other purchase price adjustments of $17.9 million, including excess cash in the business. The transaction resulted in provisional estimates of $2.9 million in net liabilities, $104.0 million of goodwill and $75.8 million of other intangible assets, which are primarily dealer relationships amortizable over 15 years. |
Dispositions
Dispositions | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Dispositions Sale of Collateralized Loan Obligation (“CLO”) Asset Management Platform In July 2020, the Company sold its CLO asset management platform for $20.0 million in cash consideration, resulting in a net gain of $18.3 million, including costs to sell, for the three and nine months ended September 30, 2020, reported through underwriting, general and administrative expenses in the consolidated statements of operations. The Company incurred additional exit related expenses of $6.1 million and $7.5 million for the three and nine months ended September 30, 2020, respectively, that were also included in underwriting, general and administrative expenses in the consolidated statements of operations. Prior to the sale, the CLOs were variable interest entities (“VIEs”) that the Company consolidated, as described in Note 12. The Company retained its direct investments in the CLOs following the sale, but deconsolidated the CLOs in third quarter 2020 since it no longer acts as collateral manager and, as a result, no longer has the power to control the CLO entities. Sale of Investment in Iké In 2014, the Company made an approximately 40% investment in Iké Grupo, Iké Asistencia and certain of their affiliates (collectively, “Iké”), a services assistance business, for which the Company paid approximately $110.0 million. At the same time, the Company also entered into a shareholders’ agreement that provided the right to acquire the remainder of Iké from the majority shareholders and the majority shareholders the right to put their interests in Iké to the Company (together, the “put/call”) in mid-2019 at a predetermined price. During 2019, the Company entered into a cooperation agreement with the majority shareholders of Iké to extend the put/call. In January 2020, in lieu of exercising the put/call, the Company entered into a formal agreement to sell its interests in Iké. In May 2020, the Company completed the sale of its interests in Iké and terminated its put/call obligations recognizing a net loss on sale of $3.9 million pre-tax and $2.9 million after-tax in the second quarter of 2020. Prior to the sale, in 2020, the Company recorded aggregate impairment losses and put/call valuation losses of $22.3 million compared to $130.5 million for the nine months ended September 30, 2019. In connection with the anticipated sale, the Company entered into a financial derivative in January 2020 that provided an economic hedge against declines in the Mexican Peso relative to the U.S. Dollar since the purchase price was to be paid in Mexican Pesos. The Company settled its position upon the sale, resulting in a cash inflow of $22.0 million, and net realized (losses) gains on the derivative of $20.3 million during the second quarter of 2020. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill is deemed to have an indefinite life and is not amortized, but rather is tested at least annually for impairment. The Company performs its annual goodwill impairment test as of October 1 each year, or more frequently if indicators of impairment exist. For the year ended December 31, 2019, goodwill of all reporting units was not considered impaired based on qualitative and quantitative tests. Global Preneed Goodwill Impairment During the third quarter of 2020, the Company identified impairment indicators impacting the fair value of the Global Preneed reportable segment in connection with exploring strategic alternatives for the Global Preneed business, including the possible sale of the business, to focus on opportunities within the Global Lifestyle and Global Housing segments. Such impairment indicators included the evaluation of the long term economic performance of the segment in light of further expected declines in interest rates from the resurgence of COVID-19 cases. As interest rates are critical to the performance of the business, the anticipated long-term declines in interest rates are expected to have adverse impacts on existing business and cause significant challenges to profitability from new business. The overall expected adverse impact to the business in the segment was an important indicator that triggered the requirement for an interim goodwill impairment analysis in the third quarter of 2020. As a result, an updated fair value assessment was completed based on how a market participant would consider the long-term outlook for business performance, long-term forecasts of the interest rate environment and its impact on the fair value of liabilities. The fair value of the reportable segment was determined using a discounted cash flow method which calculates the present value of future earnings developed from projected earnings arising from existing and new business and considers all aspects of the business including investment assumptions of asset portfolios. The fair value calculated in the third quarter of 2020 was lower than the carrying value of the reportable segment, resulting in the pre-tax impairment charge of the entire goodwill of $137.8 million and after-tax impairment charge of $135.6 million (substantial portion is not tax deductible) related to the segment. The goodwill impairment charge is reported separately in the consolidated statements of operations for the three and nine months ended September 30, 2020, with a corresponding reduction to goodwill in the consolidated balance sheet as of September 30, 2020. |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The Company adopted ASC 326 The following table illustrates the impact of adoption: As of January 1, 2020 Prior to adoption As reported on adoption Impact of adoption Financial assets, at amortized cost: Reinsurance recoverables $ 9,593.4 $ 9,570.9 $ (22.5) Premiums and accounts receivable, net 1,692.8 1,691.0 (1.8) Commercial mortgage loans on real estate 815.0 813.4 (1.6) Total $ 12,101.2 $ 12,075.3 (25.9) Tax effect 5.5 Cumulative effect of adoption $ (20.4) The total allowance for credit losses for the financial assets was $53.0 million, $46.2 million and $20.3 million as of September 30, 2020, January 1, 2020 (date of adoption) and December 31, 2019, respectively. For the nine months ended September 30, 2020, the net increase in the allowance for credit losses that reduced pre-tax income was $10.2 million, consisting of increases in the allowance for credit losses of $14.1 million, partially offset by recoveries of $3.9 million, principally related to account write-downs established prior to implementation of the new standard. The net increase is classified in the consolidated statements of operations as follows: $2.6 million is included in underwriting, general and administrative expenses and $7.6 million included in net realized losses on investments, comprised of $4.7 million related to commercial mortgage loans on real estate, $1.5 million related to available for sale fixed maturity securities and $1.4 million related to the Iké Loan (as referenced in Note 5). Reinsurance Recoverables As part of the Company’s overall risk and capacity management strategy, reinsurance is used to mitigate certain risks underwritten by various business segments. The Company is exposed to the credit risk of reinsurers, as the Company remains liable to insureds regardless of whether related reinsurance recoverables are collected. As of September 30, 2020 and December 31, 2019, reinsurance recoverables totaled $9.80 billion and $9.59 billion, respectively, the majority of which are protected from credit risk by various types of collateral or other risk mitigation mechanisms, such as trusts, letters of credit or by withholding the assets in a modified coinsurance or funds withheld arrangement. Methodology: The Company uses a probability of default and loss given default methodology in estimating the allowance, whereby the credit ratings of reinsurers are used in determining the probability of default. The allowance is established for reinsurance recoverables on paid and unpaid future policy benefits and claims and benefits. Prior to applying default factors, the net exposure to credit risk is reduced for any collateral for which the right of offset exists, such as funds withheld, assets held in trust and letters of credit, which are part of the reinsurance arrangements, with adjustments to include consideration of credit exposure on the collateral. The methodology used by the Company incorporates historical default factors for each reinsurer based on their credit rating using comparably rated bonds as published by a major ratings service. The allowance is based upon the Company’s ongoing review of amounts outstanding, length of collection periods, changes in reinsurer credit standing and other relevant factors. The Company utilizes external credit ratings published by S&P Global Ratings, a division of S&P Global Inc., at the balance sheet date when determining the allowance. Where rates are not available, the Company assigns default credit ratings based on if the reinsurer is authorized or unauthorized. Of the total recoverables subject to the allowance, 77% were rated A- or better, 17% were rated BBB or BB, and 6% were not rated based on the Company’s analysis and assigned ratings. The following table presents the changes in the CECL allowance for reinsurance recoverables by portfolio segment for the nine months ended September 30, 2020. Global Lifestyle Global Housing Global Preneed Corporate and Other Total Balance, December 31, 2019 $ 2.5 $ 0.3 $ — $ — $ 2.8 Cumulative effect of adoption 3.9 0.7 0.2 17.7 22.5 Incremental allowance 0.1 (0.4) — 3.1 2.8 Recoveries (2.5) — — — (2.5) Other — — (0.1) — (0.1) Balance, September 30, 2020 $ 4.0 $ 0.6 $ 0.1 $ 20.8 $ 25.5 For the nine months ended September 30, 2020, the incremental allowance of $2.8 million was principally due to the reduction of anticipated recoveries upon default following the recent economic impact related to COVID-19. When determining the allowance at September 30, 2020, the Company did not increase default probabilities by reinsurer since there had been no credit rating downgrades or major negative credit indications of the Company’s reinsurers that has impacted rating. The allowance may be increased and income reduced in future periods if there are future ratings downgrades or other measurable information supporting an increase in reinsurer default probabilities, including, but not limited to, collateral reductions. Premium and Accounts Receivables The Company is exposed to credit risk from premiums and other accounts receivables. For premiums receivable, the exposure to loss upon a default is often mitigated by the ability to terminate the policy on default and offset the corresponding unearned premium liability. The Company has other mitigating offsets from amounts payable on commissions and profit share arrangements when the counterparty to the receivable is a sponsor/agent of the Company’s insurance product. Methodology: For receivables due directly from the insured or consumer, the allowance is generally calculated by aging receivable balances and applying default factors based on the Company’s historical collection data. For receivables due from product sponsors or agents, receivable balances are generally segregated by the sponsor or agent and an appropriate default factor determined based on creditworthiness, billing terms and aging of balances. The financial exposure of a credit loss is determined net of offsets (such as related unearned premium reserves for consumer receivables and receivables net of commissions payable, profit share liabilities and captive reinsurance for balances due from sponsors/agents) prior to applying a default factor. The following table presents the changes in the allowance for credit losses by portfolio segment for premium and account receivables for the nine months ended September 30, 2020. Global Lifestyle Global Housing Global Preneed Corporate and Other Total Balance, December 31, 2019 $ 14.2 $ 0.2 $ 0.5 $ 0.4 $ 15.3 Cumulative effect of adoption 1.3 0.5 — — 1.8 Acquired allowance as of acquisition date 0.4 — — — 0.4 Incremental allowance 2.2 1.1 — 0.2 3.5 Recoveries (1.4) — — — (1.4) Write-offs (3.4) — — — (3.4) Foreign currency translation (0.3) — — — (0.3) Balance, September 30, 2020 $ 13.0 $ 1.8 $ 0.5 $ 0.6 $ 15.9 For the nine months ended September 30, 2020, the incremental allowance of $3.5 million relates to an increase in past due accounts and default factors following the economic impact related to COVID-19 to reflect the expectation that future defaults will exceed historical defaults. There is a risk that income may be reduced in future periods for additional credit losses. Commercial Mortgage Loans The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. and Canada. As of September 30, 2020, approximately 40% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Utah and New York. Although the Company has a diversified loan portfolio, an economic downturn could have an adverse impact on the ability of its debtors to repay their loans. The outstanding balance of commercial mortgage loans range in size from $0.1 million to $12.2 million as of September 30, 2020 and from $0.1 million to $12.3 million as of December 31, 2019. Methodology: The Company records commercial mortgage loans at amortized cost, net of the allowance for credit losses. The allowance for the Company’s commercial mortgage loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate, utilizing a probability-of-default and loss methodology, which incorporates various probability weighted economic scenarios. The probability of default is estimated using macroeconomic factors as well as individual loan characteristics, including loan-to-value (“LTV”) and debt service coverage ratios (“DSC”), loan term, collateral type, geography and underlying credit. The loss given default is driven primarily by the type and value of underlying collateral, and to a lesser extent by expected liquidation costs and time to recovery. Each loan is analyzed individually based on loan-specific data elements to estimate the expected loss and then aggregated. The Company places loans on nonaccrual status after 90 days of delinquent payments (unless the loans are secured and in the process of collection). A loan may be placed on nonaccrual status before this time if information is available that suggests collection is unlikely. The Company charges off loan and accrued interest balances that are deemed uncollectible. Charge offs are recorded to net income in the period deemed uncollectible. Upon adoption of ASC 326 on January 1, 2020, the Company increased its allowance for credit losses from $0.6 million to $2.2 million with the after-tax impact of $1.3 million reflected in retained earnings. For the nine months ended September 30, 2020, the CECL allowance was increased by an additional $4.7 million due to an increase in anticipated default factors following the recent economic impact related to COVID-19. The following table presents the amortized cost basis of commercial mortgage loans, excluding allowance for credit losses, by origination year for certain key credit quality indicators at September 30, 2020. Origination Year 2019 2018 2017 2016 Prior Total % of Total Loan to value ratios (1): 70% and less $ 109.2 $ 187.9 $ 146.2 $ 90.7 $ 225.6 $ 759.6 97.6 % 71% to 80% 7.0 — — 6.9 — 13.9 1.8 % 81% to 95% — — — — 4.5 4.5 0.6 % Total $ 116.2 $ 187.9 $ 146.2 $ 97.6 $ 230.1 $ 778.0 100.0 % Origination Year 2019 2018 2017 2016 Prior Total % of Total Debt service coverage ratios (2): Greater than 2.0 $ 37.3 $ 71.2 $ 72.3 $ 67.2 $ 106.3 $ 354.3 45.5 % 1.5 to 2.0 41.6 73.7 47.7 20.8 55.0 238.8 30.7 % 1.0 to 1.5 37.3 43.0 26.2 9.6 64.5 180.6 23.2 % Less than 1.0 — — — — 4.3 4.3 0.6 % Total $ 116.2 $ 187.9 $ 146.2 $ 97.6 $ 230.1 $ 778.0 100.0 % (1) LTV ratio derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated at least annually. (2) DSC ratio calculated using most recent reported operating income results from property operators divided by annual debt service coverage. Available for Sale Securities ASC 326 includes certain changes to the accounting and reporting for impairments involving available for sale securities, including presentation of credit-related impairments as an allowance rather than as a permanent impairment, eliminating duration of unrealized loss as a consideration when assessing recognition of an impairment, recognition of credit impairments upon purchase of securities as applicable, and requiring reversals of previously recognized credit-related impairments when applicable. Effective January 1, 2020, the Company’s updated accounting policy for available for sale securities is as follows: For available for sale fixed maturity securities in an unrealized loss position for which the Company does not intend to sell or for which it is more likely than not that the Company would not be required to sell before an anticipated recovery in value, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost basis, changes to the credit rating of the security by a nationally recognized statistical ratings organization and any adverse conditions specifically related to the security, industry or geographic area, among other factors. If this assessment indicates a potential credit loss may exist, the present value of cash flows expected to be collected are compared to the security’s amortized cost basis. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit-related impairment exists, and a charge to income and an associated allowance for credit losses is recorded for the credit-related impairment. Any impairment not related to credit losses is recorded through other comprehensive income. The amount of the allowance for credit losses is limited to the amount by which fair value is less than the amortized cost basis. Upon recognizing a credit-related impairment, the cost basis of the security is not adjusted. Subsequent changes in the allowance for credit losses are recorded as provision for, or reversal of, credit loss expense. For fixed maturities where the Company records a credit loss, a determination is made as to the cause of the impairment and whether the Company expects a recovery in the value. Write-offs are charged against the allowance when management concludes the financial asset is uncollectible. For fixed maturities where the Company expects a recovery in value, the effective yield method is utilized, and the investment is amortized to par. The Company recorded a $1.5 million allowance for credit losses on fixed maturity securities available for sale for the three and nine months ended September 30, 2020. For available for sale fixed maturity securities that the Company intends to sell, or for which it is more likely than not that the Company will be required to sell before recovery of its amortized cost basis, the entire impairment loss, or difference between the fair value and amortized cost basis of the security, is recognized in net realized gains (losses). The new cost basis of the security is the previous amortized cost basis less the impairment recognized and is not adjusted for any subsequent recoveries in fair value. The Company reports receivables for accrued investment income separately from fixed maturities available for sale and elected not to measure allowances for credit losses for accrued investment income as uncollectible balances are written off in a timely manner. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOn March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted, implementing numerous changes to tax law including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. During the nine months ended September 30, 2020, the Company filed a refund claim for $198.4 million and recorded a $79.3 million tax benefit related to the ability to carryback net operating losses to prior periods under the CARES Act, resulting in a decrease of the deferred tax asset of $107.1 million and increase to the current receivable of $186.4 million. The Company accrued a $5.2 million after-tax interest benefit related to the refund from the carryback for the nine months ended September 30, 2020, included in the provision for income taxes in the consolidated statements of operations. The Company received the full amount of the refund plus interest in July 2020. The Company also recorded refundable employee retention tax credits of $3.1 million and $4.8 million for the three and nine months ended September 30, 2020, respectively, included in underwriting, general and administrative expenses in the consolidated statements of operations. Due to the recent enactment of this legislation, the Company continues to assess the potential tax impacts on its financial position and results of operations. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information As of September 30, 2020, the Company had four reportable segments, which are defined based on the manner in which the Company’s chief operating decision maker, the Chief Executive Officer (“CEO”), reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered: • Global Lifestyle: provides mobile device solutions and extended service products and related services for consumer electronics and appliances (referred to as “Connected Living”); vehicle protection and related services (referred to as “Global Automotive”); and credit and other insurance products (referred to as “Global Financial Services and Other”); • Global Housing: provides lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”); • Global Preneed: provides pre-funded funeral insurance, final need insurance and related services; and • Corporate and Other: includes activities of the holding company, financing and interest expenses, 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), interest income earned from short-term investments held, income (expenses) primarily related to the Company’s frozen benefit plans, amounts related to businesses previously disposed of through reinsurance and the run-off of the Assurant Health business. Corporate and Other also includes the foreign currency gains (losses) from remeasurement of monetary assets and liabilities, changes in the fair value of derivative instruments and other expenses related to merger and acquisition activities, as well as other highly variable or unusual items other than reportable catastrophes (reportable catastrophe losses, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums). The following tables summarize selected financial information by segment: Three Months Ended September 30, 2020 Global Lifestyle Global Housing Global Preneed Corporate Consolidated Revenues Net earned premiums $ 1,633.2 $ 453.6 $ 16.0 $ — $ 2,102.8 Fees and other income 171.8 37.7 35.9 0.5 245.9 Net investment income 44.6 16.5 70.1 3.9 135.1 Net realized gains on investments — — — 16.6 16.6 Amortization of deferred gains on disposal of businesses — — — 2.1 2.1 Total revenues 1,849.6 507.8 122.0 23.1 2,502.5 Benefits, losses and expenses Policyholder benefits 365.4 272.8 71.1 0.3 709.6 Amortization of deferred acquisition costs and value of business acquired 870.5 56.8 18.9 — 946.2 Underwriting, general and administrative expenses 480.8 162.2 15.3 29.2 687.5 Goodwill impairment — — — 137.8 137.8 Interest expense — — — 25.5 25.5 Total benefits, losses and expenses 1,716.7 491.8 105.3 192.8 2,506.6 Segment income (loss) before provision (benefit) for income tax 132.9 16.0 16.7 (169.7) (4.1) Provision (benefit) for income taxes 26.3 2.9 3.5 (6.3) 26.4 Segment income (loss) after taxes 106.6 13.1 13.2 (163.4) (30.5) Less: Net loss attributable to non-controlling interests — — — 0.3 0.3 Net income (loss) attributable to stockholders 106.6 13.1 13.2 (163.1) (30.2) Less: Preferred stock dividends — — — (4.7) (4.7) Net income (loss) attributable to common stockholders $ 106.6 $ 13.1 $ 13.2 $ (167.8) $ (34.9) As of September 30, 2020 Segment assets: $ 23,563.3 $ 4,194.2 $ 7,507.0 $ 8,318.1 $ 43,582.6 Three Months Ended September 30, 2019 Global Lifestyle Global Housing Global Preneed Corporate Consolidated Revenues Net earned premiums $ 1,525.1 $ 475.2 $ 15.1 $ — $ 2,015.4 Fees and other income 224.2 35.1 35.7 0.1 295.1 Net investment income 62.1 22.4 73.0 12.0 169.5 Net realized gains on investments — — — 14.9 14.9 Amortization of deferred gains on disposal of businesses — — — 4.4 4.4 Total revenues 1,811.4 532.7 123.8 31.4 2,499.3 Benefits, losses and expenses Policyholder benefits 392.1 245.8 67.3 — 705.2 Amortization of deferred acquisition costs and value of business acquired 791.9 47.3 30.3 — 869.5 Underwriting, general and administrative expenses 496.6 187.6 18.2 62.1 764.5 Iké net losses — — — 121.1 121.1 Interest expense — — — 32.2 32.2 Loss on extinguishment of debt — — — 31.4 31.4 Total benefits, losses and expenses 1,680.6 480.7 115.8 246.8 2,523.9 Segment income (loss) before provision (benefit) for income tax 130.8 52.0 8.0 (215.4) (24.6) Provision (benefit) for income taxes 28.7 10.4 0.6 (11.1) 28.6 Segment income (loss) after taxes 102.1 41.6 7.4 (204.3) (53.2) Less: Net income attributable to non-controlling interest — — — (1.6) (1.6) Net income (loss) attributable to stockholders 102.1 41.6 7.4 (205.9) (54.8) Less: Preferred stock dividends — — — (4.7) (4.7) Net income (loss) attributable to common stockholders $ 102.1 $ 41.6 $ 7.4 $ (210.6) $ (59.5) Nine Months Ended September 30, 2020 Global Lifestyle Global Housing Global Preneed Corporate Consolidated Revenues Net earned premiums $ 4,799.0 $ 1,374.6 $ 49.4 $ — $ 6,223.0 Fees and other income 721.6 106.0 106.2 0.5 934.3 Net investment income 143.5 54.9 210.3 19.6 428.3 Net realized losses on investments — — — (54.6) (54.6) Amortization of deferred gains on disposal of businesses — — — 8.7 8.7 Total revenues 5,664.1 1,535.5 365.9 (25.8) 7,539.7 Benefits, losses and expenses Policyholder benefits 1,044.7 651.9 211.6 0.7 1,908.9 Amortization of deferred acquisition costs and value of business acquired 2,519.7 169.9 56.1 — 2,745.7 Underwriting, general and administrative expenses 1,649.4 496.6 48.4 137.4 2,331.8 Goodwill impairment — — — 137.8 137.8 Iké net losses — — — 5.9 5.9 Interest expense — — — 77.7 77.7 Total benefits, losses and expenses 5,213.8 1,318.4 316.1 359.5 7,207.8 Segment income (loss) before provision (benefit) for income tax 450.3 217.1 49.8 (385.3) 331.9 Provision (benefit) for income taxes 101.0 44.4 10.6 (127.8) 28.2 Segment income (loss) after taxes 349.3 172.7 39.2 (257.5) 303.7 Less: Net income attributable to non-controlling interests — — — (1.1) (1.1) Net income (loss) attributable to stockholders 349.3 172.7 39.2 (258.6) 302.6 Less: Preferred stock dividends — — — (14.0) (14.0) Net income (loss) attributable to common stockholders $ 349.3 $ 172.7 $ 39.2 $ (272.6) $ 288.6 Nine Months Ended September 30, 2019 Global Lifestyle Global Housing Global Preneed Corporate Consolidated Revenues Net earned premiums $ 4,499.1 $ 1,407.1 $ 46.3 $ — $ 5,952.5 Fees and other income 740.9 113.3 103.2 2.1 959.5 Net investment income 177.5 66.6 212.7 33.2 490.0 Net realized gains on investments — — — 61.5 61.5 Amortization of deferred gains on disposal of businesses — — — 16.9 16.9 Total revenues 5,417.5 1,587.0 362.2 113.7 7,480.4 Benefits, losses and expenses Policyholder benefits 1,152.2 652.5 202.1 0.1 2,006.9 Amortization of deferred acquisition costs and value of business acquired 2,238.4 158.7 65.5 — 2,462.6 Underwriting, general and administrative expenses 1,622.6 541.6 49.8 174.1 2,388.1 Iké net losses — — — 130.5 130.5 Interest expense — — — 85.2 85.2 Loss on extinguishment of debt — — — 31.4 31.4 Total benefits, losses and expenses 5,013.2 1,352.8 317.4 421.3 7,104.7 Segment income (loss) before provision (benefit) for income tax 404.3 234.2 44.8 (307.6) 375.7 Provision (benefit) for income taxes 92.3 48.4 8.7 (31.7) 117.7 Segment income (loss) after taxes 312.0 185.8 36.1 (275.9) 258.0 Less: Net income attributable to non-controlling interest — — — (3.0) (3.0) Net income (loss) attributable to stockholders 312.0 185.8 36.1 (278.9) 255.0 Less: Preferred stock dividends — — — (14.0) (14.0) Net income (loss) attributable to common stockholders $ 312.0 $ 185.8 $ 36.1 $ (292.9) $ 241.0 |
Contract Revenues
Contract Revenues | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract Revenues | Contract Revenues The Company partners with clients to provide consumers a diverse range of protection products and services. The Company’s revenues from protection products are accounted for as insurance contracts and are recognized over the term of the insurance protection provided. Revenues from service contracts and sales of products are recognized as the contractual performance obligations are satisfied or the products are delivered. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for performing the services or transferring products. If payments are received before the related revenue is recognized, the amount is recorded as unearned revenue or advance payment liabilities, until the performance obligations are satisfied or the products are transferred. The disaggregated revenues from service contracts included in fees and other income on the consolidated statements of operations are $124.6 million and $188.8 million for Global Lifestyle and $25.3 million and $23.8 million for Global Housing for the three months ended September 30, 2020 and 2019, respectively. The disaggregated revenues from service contracts included in fees and other income on the consolidated statements of operations are $579.3 million and $614.6 million for Global Lifestyle and $71.1 million and $81.4 million for Global Housing for the nine months ended September 30, 2020 and 2019, respectively. Global Lifestyle In the Company’s Global Lifestyle segment, revenues from service contracts and sales of products are primarily from the Company’s Connected Living business. Through partnerships with mobile carriers, the Company provides administrative services related to its mobile device protection products, including program design and marketing strategy, risk management, data analytics, customer support and claims handling, supply chain and service delivery, repair and logistics, and device disposition. Administrative fees are generally billed monthly based on the volume of services provided during the billing period (for example, based on the number of mobile subscribers) with payment due within a short-term period. Each service or bundle of services, depending on the contract, is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer. The Company also repairs, refurbishes and then sells mobile and other electronic devices, on behalf of its client, for a bundled per unit fee. The entire processing of the device is considered one performance obligation with a standalone selling price and thus, the per unit fee is recognized when the products are sold. Payment for the products is received prior to shipment and the Company deducts its per unit fee prior to remitting the remainder to the client. Global Housing In the Company’s Global Housing segment, revenues from service contracts and sales of products are primarily from the Company’s Lender-placed Insurance business. Under the Company’s Lender-placed Insurance business, the Company provides loan and claim payment tracking services for lenders. The Company generally invoices its customers weekly or monthly based on the volume of services provided during the billing period with payment due within a short-term period. Each service is an individual performance obligation with a standalone selling price. The Company recognizes revenue as it invoices, which corresponds to the value transferred to the customer. Contract Balances The receivables and unearned revenue under these contracts were $210.0 million and $85.7 million, respectively, as of September 30, 2020, and $185.0 million and $87.6 million, respectively, as of December 31, 2019. These balances are included in premiums and accounts receivable and accounts payable and other liabilities, respectively, in the consolidated balance sheets. Revenue from service contracts and sales of products recognized during the three months ended September 30, 2020 and 2019 that was included in unearned revenue as of December 31, 2019 and 2018 was $10.3 million and $14.5 million, respectively. Revenue from service contracts and sales of products recognized during the nine months ended September 30, 2020 and 2019 that was included in unearned revenue as of December 31, 2019 and 2018 was $37.5 million and $44.7 million, respectively. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments [Abstract] | |
Investments | Investments The following tables show the cost or amortized cost, allowance for credit losses, gross unrealized gains and losses, fair value, and impairment included within accumulated other comprehensive income (“AOCI”) of the Company’s fixed maturity securities as of the dates indicated: September 30, 2020 Cost or Allowance for Credit Losses Gross Gross Fair Value Impairment in Fixed maturity securities: U.S. government and government agencies and authorities $ 125.1 $ — $ 6.8 $ — $ 131.9 $ — States, municipalities and political subdivisions 224.6 — 34.2 (0.1) 258.7 — Foreign governments 872.2 — 149.7 (1.0) 1,020.9 — Asset-backed 529.9 — 8.5 (6.0) 532.4 — Commercial mortgage-backed 327.2 — 16.8 (3.8) 340.2 — Residential mortgage-backed 1,084.7 — 95.8 (0.2) 1,180.3 2.5 U.S. corporate 6,001.0 (1.5) 1,100.3 (23.2) 7,076.6 17.6 Foreign corporate 2,214.6 — 341.6 (2.7) 2,553.5 — Total fixed maturity securities $ 11,379.3 $ (1.5) $ 1,753.7 $ (37.0) $ 13,094.5 $ 20.1 December 31, 2019 Cost or Gross Gross Fair Value Impairment in Fixed maturity securities: U.S. government and government agencies and authorities $ 188.9 $ 5.3 $ (0.1) $ 194.1 $ — States, municipalities and political subdivisions 216.1 26.4 — 242.5 — Foreign governments 916.9 94.3 (0.8) 1,010.4 — Asset-backed 502.4 3.1 (2.3) 503.2 — Commercial mortgage-backed 212.7 10.2 (0.8) 222.1 — Residential mortgage-backed 1,235.3 52.4 (1.4) 1,286.3 3.1 U.S. corporate 5,679.8 818.9 (2.1) 6,496.6 16.5 Foreign corporate 2,112.7 255.4 (0.9) 2,367.2 — Total fixed maturity securities $ 11,064.8 $ 1,266.0 $ (8.4) $ 12,322.4 $ 19.6 (1) Represents the amount of non-credit related impairment recognized in AOCI. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date prior to adoption of ASC 326. See Note 3 for further information. The Company’s state, municipality and political subdivision holdings are highly diversified across the U.S., with no individual state, municipality or political subdivision exposure (including both general obligation and revenue securities) exceeding 0.3% of the overall investment portfolio as of September 30, 2020 and December 31, 2019. As of September 30, 2020 and December 31, 2019, the securities included general obligation and revenue bonds issued by states, cities, counties, school districts and similar issuers, including $38.7 million and $51.9 million, respectively, of advance refunded or escrowed-to-maturity bonds (collectively referred to as “pre-refunded bonds”), which are bonds for which an irrevocable trust has been established to fund the remaining payments of principal and interest. As of September 30, 2020 and December 31, 2019, revenue bonds accounted for 63% and 60% of the holdings, respectively. Excluding pre-refunded bonds, the activities supporting the income streams of the Company’s revenue bonds are across a broad range of sectors, primarily water, airport and marina, specifically pledged tax revenues, leases, colleges and universities and other miscellaneous sources such as bond banks, finance authorities and appropriations. The Company’s investments in foreign government fixed maturity securities are held mainly in countries and currencies where the Company has policyholder liabilities, to facilitate matching of assets to the related liabilities. As of September 30, 2020, approximately 59%, 12% and 8% of the foreign government securities were held in Canadian government/provincials and the governments of Brazil and Mexico, respectively. As of December 31, 2019, approximately 58%, 20% and 6% of the foreign government securities were held in Canadian government/provincials and the governments of Brazil and Mexico, respectively. No other country represented more than 4% and 5% of the Company’s foreign government securities as of September 30, 2020 and December 31, 2019, respectively. The Company had European investment exposure in its corporate fixed maturity securities of $881.5 million with a net unrealized gain of $109.2 million as of September 30, 2020 and $802.3 million with a net unrealized gain of $82.4 million as of December 31, 2019. Approximately 28% of the corporate fixed maturity European exposure was held in the financial industry as of September 30, 2020 and December 31, 2019. The Company’s largest European country exposure (the United Kingdom) represented approximately 4% of the fair value of the Company’s corporate fixed maturity securities as of September 30, 2020 and December 31, 2019. The Company’s international investments are managed as part of the overall portfolio with the same approach to risk management and focus on diversification. The Company had exposure to the energy sector in its corporate fixed maturity securities of $748.3 million with a net unrealized gain of $62.4 million as of September 30, 2020 and $784.4 million with a net unrealized gain of $93.1 million as of December 31, 2019. Approximately 86% and 94% of the energy exposure is rated as investment grade as of September 30, 2020 and December 31, 2019, respectively. The cost or amortized cost and fair value of fixed maturity securities as of September 30, 2020 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Cost or Fair Value Due in one year or less $ 463.5 $ 470.4 Due after one year through five years 2,547.5 2,717.6 Due after five years through ten years 2,439.3 2,744.2 Due after ten years 3,987.2 5,109.4 Total 9,437.5 11,041.6 Asset-backed 529.9 532.4 Commercial mortgage-backed 327.2 340.2 Residential mortgage-backed 1,084.7 1,180.3 Total $ 11,379.3 $ 13,094.5 The following table sets forth the net realized gains (losses), including impairment, recognized in the consolidated statements of operations for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net realized gains (losses) related to sales and other: Fixed maturity securities $ 1.8 $ 7.4 $ 7.6 $ 15.1 Equity securities (1) 16.9 9.4 (9.9) 46.3 Commercial mortgage loans on real estate (2.8) — (4.6) — Other investments 2.2 0.3 (0.8) 5.4 Consolidated investment entities (2) — (2.0) (32.3) (4.2) Total net realized gains (losses) related to sales and other 18.1 15.1 (40.0) 62.6 Net realized losses related to impairments: Fixed maturity securities (3) (1.5) (0.2) (3.2) (1.1) Other investments (4) — — (11.4) — Total net realized losses related to impairments (1.5) (0.2) (14.6) (1.1) Total net realized gains (losses) $ 16.6 $ 14.9 $ (54.6) $ 61.5 (1) Nine months ended September 30, 2020 and 2019 includes $2.2 million and $10.4 million, respectively, of gains on equity investment holdings accounted for under the measurement alternative. There were no changes in fair value recorded on equity investments holdings accounted for under the measurement alternative for the three months ended September 30, 2020 and 2019. (2) Consists of net realized losses from the change in fair value of the Company’s direct investment in collateralized loan obligations (“CLOs”). Refer to Notes 5 and 12 for additional information. (3) Includes credit impairment charges recognized in net realized gains (losses) of $1.5 million on fixed maturity securities available for sale for the three and nine months ended September 30, 2020. Refer to Note 7 for additional information. (4) Results for the nine months ended September 30, 2020 consist of impairment losses on equity investment holdings accounted for under the measurement alternative. The following table sets forth the portion of unrealized gains (losses) related to equity securities for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net gains (losses) recognized on equity securities $ 16.9 $ 9.4 $ (9.9) $ 46.3 Less: Net realized gains related to sales of equity securities 0.4 0.9 1.3 — Total net unrealized gains (losses) on equity securities held $ 16.5 $ 8.5 $ (11.2) $ 46.3 The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities as of September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 Less than 12 months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Fixed maturity securities: States, municipalities and political subdivisions 24.7 (0.1) — — 24.7 (0.1) Foreign governments 14.9 (1.0) — — 14.9 (1.0) Asset-backed 112.5 (3.8) 83.9 (2.2) 196.4 (6.0) Commercial mortgage-backed 53.2 (2.9) 3.9 (0.9) 57.1 (3.8) Residential mortgage-backed 26.2 (0.1) 1.5 (0.1) 27.7 (0.2) U.S. corporate 307.9 (22.0) 15.7 (1.2) 323.6 (23.2) Foreign corporate 112.9 (2.7) — — 112.9 (2.7) Total fixed maturity securities $ 652.3 $ (32.6) $ 105.0 $ (4.4) $ 757.3 $ (37.0) December 31, 2019 Less than 12 months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Fixed maturity securities: U.S. government and government agencies and authorities $ 21.9 $ (0.1) $ — $ — $ 21.9 $ (0.1) Foreign governments 115.7 (0.8) — — 115.7 (0.8) Asset-backed 66.9 (0.2) 105.1 (2.1) 172.0 (2.3) Commercial mortgage-backed 20.0 (0.3) 4.3 (0.5) 24.3 (0.8) Residential mortgage-backed 82.5 (0.6) 82.6 (0.8) 165.1 (1.4) U.S. corporate 87.5 (1.4) 14.4 (0.7) 101.9 (2.1) Foreign corporate 45.8 (0.7) 7.5 (0.2) 53.3 (0.9) Total fixed maturity securities $ 440.3 $ (4.1) $ 213.9 $ (4.3) $ 654.2 $ (8.4) |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities In the normal course of business, the Company is involved with various types of investment entities that may be considered VIEs. The Company evaluates its involvement with each entity to determine whether consolidation is required. The Company’s maximum risk of loss is limited to the carrying value and unfunded commitments of its investments in the VIEs. Consolidated VIEs One of the Company’s subsidiaries was registered with the U.S. Securities and Exchange Commission (the “SEC”) as an investment adviser. The subsidiary (or one of its affiliates) managed and invested in CLOs and real estate funds and conducted other forms of investment activities. Prior to third quarter 2020, the Company had determined that the CLOs and real estate fund were VIEs and consolidated each because the Company was deemed to be the primary beneficiary of these entities due to (i) its role as collateral manager, which gave it the power to direct the activities that most significantly impact the economic performance of the entities, and (ii) its economic interest in the entities, which exposed it to losses and the right to receive benefits that could potentially be significant to the entities. During the third quarter 2020, the Company sold its CLO asset management platform and outsourced its real estate asset management. As a result of these transactions, the Company deconsolidated the CLO entities and real estate fund since it no longer acts as collateral manager and, as a result, no longer has the power to control these entities. See Note 5 for additional information on the sale of the CLO asset management platform. Collateralized Loan Obligations: Prior to the deconsolidation in the third quarter of 2020, the CLO entities were collateralized financing entities. Under the elected measurement alternative for collateralized financing entities, the carrying value of the CLO debt equals the fair value of the CLO assets (senior secured leveraged loans) as the assets have more observable fair values. The CLO liabilities are reduced by the fair value of the beneficial interests the Company retains in the CLO and the carrying value of any beneficial interests that represent compensation for services. CLO earnings attributable to the Company’s shareholders are measured by the change in the fair value of the Company’s CLO investments, net investment income earned and investment management and contingent performance fees earned. Investment management fees are reported as a reduction to investment expenses in the consolidated statements of operations. The assets of the CLOs are legally isolated from the Company’s creditors and can only be used to settle obligations of the CLOs. The liabilities of the CLOs are non-recourse to the Company and the Company has no obligation to satisfy the liabilities of the CLOs. As of September 30, 2020, due to the deconsolidation, the CLO investments are reported in the consolidated balance sheet in fixed maturity securities and other investments. As of December 31, 2019, the carrying value of the Company’s investment in the CLOs that had closed was $77.4 million in subordinated debt tranches and $21.1 million in senior debt tranches. The Company’s retained beneficial interests in subordinated tranches are measured at fair value using the market or income valuation techniques using significant unobservable inputs and assumptions, including prepayment, default rate, recovery lag, reinvestment, collateral liquidation price, discount rate and call date assumptions. Real Estate Fund: Prior to the deconsolidation in the third quarter of 2020, t he Company’s real estate fund investment was a closed ended fund that included contributions from third party investors, which were recorded as non-controlling interests. Real estate fund earnings attributable to the Company’s shareholders are measured by the net investment income of the real estate fund, which includes the change in fair value of the Company’s investments in the real estate fund and investment management fees earned. The Company had a majority investment in the real estate fund in the form of an equity interest. As of September 30, 2020, the real estate fund is reported in the consolidated balance sheet in other investments. The carrying value of the Company’s investment in the real estate fund was $88.3 million as of December 31, 2019. For all consolidated investment entities, intercompany transactions are eliminated upon consolidation. Fair Value of VIE Assets and Liabilities The Company categorizes its fair value measurements according to a three-level hierarchy. See Note 13 for the definition of the three levels of the fair value hierarchy. The following table presents the Company’s fair value hierarchy for financial assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis as of December 31, 2019. December 31, 2019 Total Level 1 Level 2 Level 3 Financial Assets Investments: Cash and cash equivalents $ 32.9 $ 32.9 (1) $ — $ — Corporate debt securities 1,850.7 — 1,850.7 — Real estate fund 107.2 — — 107.2 Total financial assets $ 1,990.8 $ 32.9 $ 1,850.7 $ 107.2 Financial Liabilities Collateralized loan obligation notes $ 1,603.1 $ — $ 1,603.1 $ — Total financial liabilities $ 1,603.1 $ — $ 1,603.1 $ — (1) Amounts consist of money market funds. Level 2 Securities Corporate debt securities: These assets are comprised of senior secured leveraged loans. The Company values these securities using estimates of fair value from a pricing service which utilizes the market valuation technique. The primary observable market inputs used by the pricing service are prices of reported trades from dealers. The fair value is calculated using a simple average of the prices received. Collateralized loan obligation notes: As the Company elected the measurement alternative, the carrying value of the CLO debt is equal to the fair value of the CLO assets. The CLO notes are classified within Level 2 of the fair value hierarchy, consistent with the classification of the majority of the CLO financial assets. Level 3 Securities Real estate fund: These assets are comprised of investments in limited partnerships whose underlying investments are real estate properties. Management estimates the fair value of these real estate assets using the market, income or cost approach valuation techniques, using significant unobservable inputs and assumptions, including capitalization rates, discount rates, market comparable prices, leasing assumptions and replacement costs. The following table summarizes the change in balance sheet carrying value associated with Level 3 assets held by consolidated investment entities measured at fair value during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance, beginning of period $ 54.5 $ 138.2 $ 107.2 $ 112.0 Purchases — — — 15.4 Sales — (5.6) (61.0) (5.6) Deconsolidation adjustments (1) (54.5) — (54.5) — Total income included in earnings — 6.5 8.3 17.3 Balance, end of period $ — $ 139.1 $ — $ 139.1 (1) Deconsolidation adjustments include $8.8 million related to non-controlling interests and $45.7 million related to investments retained, which are now included in other investments. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures Fair Values, Inputs and Valuation Techniques for Financial Assets and Liabilities Disclosures The fair value measurements and disclosures guidance defines fair value and establishes a framework for measuring fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with this guidance, the Company has categorized its recurring fair value basis financial assets and liabilities into a three-level fair value hierarchy based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and takes into account factors specific to the asset or liability. The levels of the fair value hierarchy are described below: • Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access. • Level 2 inputs utilize other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable in the marketplace for the asset or liability. The observable inputs are used in valuation models to calculate the fair value for the asset or liability. • Level 3 inputs are unobservable but are significant to the fair value measurement for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. The Company reviews fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019. The amounts presented below for short-term investments, other investments, cash equivalents, other assets, assets held in and liabilities related to separate accounts and other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan (“AIP”), the American Security Insurance Company Investment Plan, the Assurant Deferred Compensation Plan, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the AIP and other derivatives, including the put/call for Iké. The fair value amount and the majority of the associated levels presented for other investments and assets and liabilities held in separate accounts are received directly from third parties. September 30, 2020 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 131.9 $ — $ 131.9 $ — States, municipalities and political subdivisions 258.7 — 258.7 — Foreign governments 1,020.9 0.6 1,020.0 0.3 Asset-backed 532.4 — 531.6 0.8 Commercial mortgage-backed 340.2 — 320.4 19.8 Residential mortgage-backed 1,180.3 — 1,177.6 2.7 U.S. corporate 7,076.6 — 7,050.1 26.5 Foreign corporate 2,553.5 — 2,520.0 33.5 Equity securities: Mutual funds 42.6 42.6 — — Common stocks 20.4 18.6 0.7 1.1 Non-redeemable preferred stocks 321.4 — 319.3 2.1 Short-term investments 217.3 174.8 (2) 42.5 — Other investments 231.7 66.4 (1) 165.3 (3) — Cash equivalents 1,592.4 1,564.8 (2) 27.6 (3) — Other assets 1.0 — 0.8 (4) 0.2 (4) Assets held in separate accounts 1,972.6 1,802.1 (1) 170.5 (3) — Total financial assets $ 17,493.9 $ 3,669.9 $ 13,737.0 $ 87.0 Financial Liabilities Other liabilities $ 66.4 $ 66.4 (1) $ — $ — Liabilities related to separate accounts 1,972.6 1,802.1 (1) 170.5 (3) — Total financial liabilities $ 2,039.0 $ 1,868.5 $ 170.5 $ — December 31, 2019 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 194.1 $ — $ 194.1 $ — States, municipalities and political subdivisions 242.5 — 242.5 — Foreign governments 1,010.4 0.3 1,010.1 — Asset-backed 503.2 — 503.2 — Commercial mortgage-backed 222.1 — 198.6 23.5 Residential mortgage-backed 1,286.3 — 1,286.3 — U.S. corporate 6,496.6 — 6,494.8 1.8 Foreign corporate 2,367.2 — 2,331.5 35.7 Equity securities: Mutual funds 45.5 45.5 — — Common stocks 23.5 22.8 0.7 — Non-redeemable preferred stocks 319.5 — 317.3 2.2 Short-term investments 367.5 271.4 (2) 96.1 — Other investments 234.6 70.3 (1) 164.3 (3) — Cash equivalents 1,287.5 1,277.8 (2) 9.7 (3) — Assets held in separate accounts 1,806.3 1,623.7 (1) 182.6 (3) — Total financial assets $ 16,406.8 $ 3,311.8 $ 13,031.8 $ 63.2 Financial Liabilities Other liabilities $ 172.0 $ 70.3 (1) $ 101.5 (5) $ 0.2 Liabilities related to separate accounts 1,806.3 1,623.7 (1) 182.6 (3) — Total financial liabilities $ 1,978.3 $ 1,694.0 $ 284.1 $ 0.2 (1) Primarily includes mutual funds and related obligations. (2) Primarily includes money market funds. (3) Primarily includes fixed maturity securities and related obligations. (4) Primarily includes derivative assets. (5) Includes the put/call related to the investment in Iké. See Note 5 for more information. The following tables disclose the carrying value, fair value and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of the dates indicated: September 30, 2020 Fair Value Carrying Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 771.1 $ 827.0 $ — $ — $ 827.0 Other investments 165.4 165.4 30.3 — 135.1 Other assets 24.8 24.8 — — 24.8 Total financial assets $ 961.3 $ 1,017.2 $ 30.3 $ — $ 986.9 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 527.1 $ 585.3 $ — $ — $ 585.3 Funds withheld under reinsurance 361.2 361.2 361.2 — — Debt 2,008.6 2,204.3 — 2,204.3 — Total financial liabilities $ 2,896.9 $ 3,150.8 $ 361.2 $ 2,204.3 $ 585.3 December 31, 2019 Fair Value Carrying Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 815.0 $ 843.8 $ — $ — $ 843.8 Other investments 140.0 140.0 30.7 — 109.3 Other assets 28.9 28.9 — — 28.9 Total financial assets $ 983.9 $ 1,012.7 $ 30.7 $ — $ 982.0 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 551.6 $ 588.4 $ — $ — $ 588.4 Funds withheld under reinsurance 319.4 319.4 319.4 — — Debt 2,006.9 2,190.6 — 2,190.6 — Total financial liabilities $ 2,877.9 $ 3,098.4 $ 319.4 $ 2,190.6 $ 588.4 (1) Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the table above. |
Reserves
Reserves | 9 Months Ended |
Sep. 30, 2020 | |
Insurance Loss Reserves [Abstract] | |
Reserves | Reserves Reserve Roll Forward The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and is comprised of case and incurred but not reported (“IBNR”) reserves. Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively. The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented. For the Nine Months Ended September 30, 2020 2019 Claims and benefits payable, at beginning of period $ 2,687.7 $ 2,813.7 Less: Reinsurance ceded and other (1,900.0) (2,053.7) Net claims and benefits payable, at beginning of period 787.7 760.0 Incurred losses and loss adjustment expenses related to: Current year 1,951.4 2,034.2 Prior years (43.0) (27.3) Total incurred losses and loss adjustment expenses 1,908.4 2,006.9 Paid losses and loss adjustment expenses related to: Current year 1,368.4 1,468.4 Prior years 463.0 470.4 Total paid losses and loss adjustment expenses 1,831.4 1,938.8 Net claims and benefits payable, at end of period 864.7 828.1 Plus: Reinsurance ceded and other (1) 1,893.5 2,043.0 Claims and benefits payable, at end of period (1) $ 2,758.2 $ 2,871.1 (1) Includes reinsurance recoverables and claims and benefits payable of $118.4 million and $191.7 million as of September 30, 2020 and 2019, respectively, which was ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table shows the principal amount and carrying value of the Company’s outstanding debt, less unamortized discount and issuance costs as applicable, as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Principal Amount Carrying Value Principal Amount Carrying Value Floating Rate Senior Notes due March 2021 (1) $ 50.0 $ 50.0 $ 50.0 $ 49.9 4.00% Senior Notes due March 2023 350.0 348.8 350.0 348.5 4.20% Senior Notes due September 2023 300.0 298.2 300.0 297.8 4.90% Senior Notes due March 2028 300.0 297.1 300.0 296.8 3.70% Senior Notes due February 2030 350.0 347.0 350.0 346.8 6.75% Senior Notes due February 2034 275.0 272.2 275.0 272.1 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2) 400.0 395.3 400.0 395.0 Total Debt $ 2,008.6 $ 2,006.9 (1) Bears floating interest at a rate equal to three-month LIBOR plus 1.25% per annum. (2) Bears a 7.00% annual interest rate to March 2028 and an annual interest rate equal to three-month LIBOR plus 4.135% thereafter. Credit Facility The Company has a senior unsecured $450.0 million revolving credit agreement (the “Credit Facility”) with a syndicate of banks arranged by JPMorgan Chase Bank, N.A. and Wells Fargo Bank, National Association (the “Lenders”). The Credit Facility provides for revolving loans and the issuance of multi-bank, syndicated letters of credit and letters of credit from a sole issuing bank in an aggregate amount of $450.0 million, which may be increased up to $575.0 million. The Credit Facility is available until December 2022, provided the Company is in compliance with all covenants. The Credit Facility has a sub-limit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for the Company’s commercial paper program or for general corporate purposes. On March 27, 2020, the Company drew down $200.0 million from its Credit Facility as a precautionary measure to strengthen its liquidity position and capital flexibility due to the uncertainty caused by the COVID-19 pandemic. The initial interest period for the loan ended on June 26, 2020 and bore a floating interest rate equal to three-month LIBOR plus 1.50% per annum. Upon the expiration of the initial interest period, the Company continued the $200.0 million loan for an additional month bearing a floating interest rate equal to one-month LIBOR plus 1.50% per annum. The Company repaid the full $200.0 million loan on July 29, 2020. As of September 30, 2020, no borrowings were outstanding under the Credit Facility, and $445.5 million was available under the Credit Facility, due to $4.5 million of letters of credit outstanding. Total interest expense on the $200.0 million draw for the nine months ended September 30, 2020 was $1.7 million. Interest Rate Derivatives |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Certain amounts included in the consolidated statements of comprehensive income are net of reclassification adjustments. The following tables summarize those reclassification adjustments (net of taxes) for the periods indicated: Three Months Ended September 30, 2020 Foreign Net unrealized Net unrealized gains on derivative transactions Credit related impairment Non-credit related impairment Unamortized net losses on Pension Plans Accumulated Balance at June 30, 2020 $ (379.0) $ 989.1 $ 15.9 $ — $ 14.3 $ (71.4) $ 568.9 Change in accumulated other comprehensive income (loss) before reclassifications 35.3 53.8 — 1.2 1.5 (0.5) 91.3 Amounts reclassified from accumulated other comprehensive income (loss) — 0.3 (0.6) — — (1.7) (2.0) Net current-period other comprehensive income (loss) 35.3 54.1 (0.6) 1.2 1.5 (2.2) 89.3 Balance at September 30, 2020 $ (343.7) $ 1,043.2 $ 15.3 $ 1.2 $ 15.8 $ (73.6) $ 658.2 Three Months Ended September 30, 2019 Foreign Net unrealized Net unrealized gains on derivative transactions Credit related impairment Non-credit related impairment Unamortized net (losses) gains on Pension Plans Accumulated Balance at June 30, 2019 $ (366.6) $ 778.4 $ 15.2 $ — $ 15.6 $ (113.9) $ 328.7 Change in accumulated other comprehensive (loss) income before reclassifications (23.6) 101.0 0.5 — 0.2 0.1 78.2 Amounts reclassified from accumulated other comprehensive (loss) income — (3.6) 2.2 — — (0.3) (1.7) Net current-period other comprehensive (loss) income (23.6) 97.4 2.7 — 0.2 (0.2) 76.5 Balance at September 30, 2019 $ (390.2) $ 875.8 $ 17.9 $ — $ 15.8 $ (114.1) $ 405.2 Nine Months Ended September 30, 2020 Foreign Net unrealized Net unrealized gains on derivative transactions Credit related impairment Non-credit related impairment Unamortized net (losses) on Pension Plans (1) Accumulated Balance at December 31, 2019 $ (358.9) $ 856.5 $ 17.1 $ — $ 15.5 $ (118.7) $ 411.5 Change in accumulated other comprehensive (loss) income before reclassifications (4.5) 189.1 — 1.2 0.3 48.4 234.5 Amounts reclassified from accumulated other comprehensive income (loss) 19.7 (2.4) (1.8) — — (3.3) 12.2 Net current-period other comprehensive income (loss) 15.2 186.7 (1.8) 1.2 0.3 45.1 246.7 Balance at September 30, 2020 $ (343.7) $ 1,043.2 $ 15.3 $ 1.2 $ 15.8 $ (73.6) $ 658.2 Nine Months Ended September 30, 2019 Foreign Net unrealized Net unrealized gains on derivative transactions Credit related impairment Non-credit related impairment Unamortized net (losses) on Pension Plans Accumulated Balance at December 31, 2018 $ (375.6) $ 301.0 $ 18.4 $ — $ 15.1 $ (114.3) $ (155.4) Change in accumulated other comprehensive (loss) income before reclassifications (14.6) 581.4 (1.5) — 0.7 0.1 566.1 Amounts reclassified from accumulated other comprehensive (loss) income — (6.6) 1.0 — — 0.1 (5.5) Net current-period other (14.6) 574.8 (0.5) — 0.7 0.2 560.6 Balance at September 30, 2019 $ (390.2) $ 875.8 $ 17.9 $ — $ 15.8 $ (114.1) $ 405.2 (1) The Retirement Health Benefits plan was amended in February 2020, which resulted in a prior service credit recognized in other comprehensive income that will be recognized in income over the remaining period of the plan. Refer to Note 20 for additional information. The following tables summarize the reclassifications out of AOCI for the periods indicated: Details about accumulated other comprehensive income components Amount reclassified from Affected line item in the Three Months Ended September 30, 2020 2019 Net unrealized losses (gains) on investments $ 0.3 $ (4.5) Net realized gains (losses) on investments — 0.9 Provision for income taxes $ 0.3 $ (3.6) Net of tax Net unrealized (gains) losses on derivative transactions $ (0.7) $ 2.0 Interest expense 0.1 0.2 Provision for income taxes $ (0.6) $ 2.2 Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss (gain) $ 1.3 $ (0.4) (1) Amortization of prior service credit (3.4) — (1) (2.1) (0.4) 0.4 0.1 Provision for income taxes $ (1.7) $ (0.3) Net of tax Total reclassifications for the period $ (2.0) $ (1.7) Net of tax Details about accumulated other comprehensive income components Amount reclassified from Affected line item in the Nine Months Ended September 30, 2020 2019 Foreign currency translation adjustment $ 19.7 $ — Iké net losses (see Note 5) — — Provision for income taxes $ 19.7 $ — Net of tax Net unrealized gains on investments $ (3.1) $ (8.3) Net realized gains (losses) on investments 0.7 1.7 Provision for income taxes $ (2.4) $ (6.6) Net of tax Net unrealized (gains) losses on derivative transactions $ (2.2) $ 0.5 Interest expense 0.4 0.5 Provision for income taxes $ (1.8) $ 1.0 Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss $ 3.8 $ 0.2 (1) Amortization of prior service credit (7.9) — (1) (4.1) 0.2 0.8 (0.1) Provision for income taxes $ (3.3) $ 0.1 Net of tax Total reclassifications for the period $ 12.2 $ (5.5) Net of tax (1) These AOCI components are included in the computation of net periodic pension cost. See Note 20 for additional information. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation Under the Assurant, Inc. 2017 Long-Term Equity Incentive Plan (“ALTEIP”), as amended in May 2019, the Company is authorized to issue up to 1,588,797 new shares of the Company’s common stock to employees, officers and non-employee directors. Under the ALTEIP, the Company may grant awards based on shares of its common stock, including stock options, stock appreciation rights, restricted stock (including performance shares), unrestricted stock, restricted stock units (“RSUs”), performance share units (“PSUs”) and dividend equivalents. All share-based grants are awarded under the ALTEIP. Restricted Stock Units The following table shows a summary of RSU activity during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 RSU compensation expense $ 7.2 $ 7.9 $ 20.8 $ 22.3 Income tax benefit (1.4) (1.4) (3.8) (4.1) RSU compensation expense, net of tax $ 5.8 $ 6.5 $ 17.0 $ 18.2 RSUs granted 32,844 29,195 294,794 254,591 Weighted average grant date fair value per unit $ 101.81 $ 108.99 $ 92.2 $ 98.86 Total fair value of vested RSUs $ 4.8 $ 6.4 $ 29.2 $ 33.2 As of September 30, 2020, there was $24.4 million of unrecognized compensation cost related to outstanding RSUs. That cost is expected to be recognized over a weighted-average period of 1.1 years. Performance Share Units The following table shows a summary of PSU activity during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 PSU compensation expense $ 7.6 $ 6.7 $ 19.7 $ 17.5 Income tax benefit (0.8) (1.0) (2.1) (2.5) PSU compensation expense, net of tax $ 6.8 $ 5.7 $ 17.6 $ 15.0 PSUs granted — — 302,274 246,219 Weighted average grant date fair value per unit $ — $ — $ 87.36 $ 105.23 Total fair value of vested PSUs $ 0.3 $ 1.9 $ 24.7 $ 19.6 As of September 30, 2020, there was $27.8 million of unrecognized compensation cost related to outstanding PSUs. That cost is expected to be recognized over a weighted-average period of 1.1 years. |
Equity Transactions
Equity Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Class of Stock Disclosures [Abstract] | |
Equity Transactions | Equity Transactions Stock Repurchase During the nine months ended September 30, 2020 and 2019, the Company repurchased 1,312,443 and 1,582,448 shares of the Company’s outstanding common stock at a cost of $153.2 million and $166.1 million, exclusive of commissions, respectively, leaving $333.1 million remaining under the total repurchase authorization as of September 30, 2020. The timing and the amount of future repurchases will depend on market conditions, the Company’s financial condition, results of operations and liquidity and other factors. Issuance of Mandatory Convertible Preferred Stock (“MCPS”) In March 2018, the Company issued 2,875,000 shares of the MCPS at a public offering price of $100.00 per share. The net proceeds from the sale of the MCPS was $276.4 million after deducting the underwriting discounts and offering expenses. Each outstanding share of MCPS will convert automatically on March 15, 2021 into between 0.9391 (the “minimum conversion rate”) and 1.1269 shares of common stock, subject to customary anti-dilution adjustments. At any time prior to March 2021, holders may elect to convert each share of MCPS into shares of common stock at the minimum conversion rate or in the event of a fundamental change at the specified rates as defined in the Certificate of Designations of the MCPS. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following table presents net income, the weighted average common shares used in calculating basic EPS and those used in calculating diluted EPS for each period presented below. Diluted EPS reflects the incremental common shares from: (1) common shares issuable upon vesting of PSUs and the purchase of shares under the Employee Stock Purchase Plan (the “ESPP”) using the treasury stock method; and (2) common shares issuable upon conversion of the MCPS using the if-converted method. Refer to Notes 17 and 18 for further information regarding potential common stock issuances. The outstanding RSUs have non-forfeitable rights to dividend equivalents and are therefore included in calculating basic and diluted EPS under the two-class method. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator Net (loss) income attributable to stockholders $ (30.2) $ (54.8) $ 302.6 $ 255.0 Less: Preferred stock dividends (4.7) (4.7) (14.0) (14.0) Net (loss) income attributable to common stockholders (34.9) (59.5) 288.6 241.0 Less: Common stock dividends paid (37.5) (37.3) (115.1) (113.0) Undistributed earnings $ (72.4) $ (96.8) $ 173.5 $ 128.0 Denominator Weighted average common shares outstanding used in basic earnings per common share calculations 60,190,103 61,804,492 60,384,817 62,204,242 Incremental common shares from: PSUs — — 253,982 256,003 ESPP — — 2,146 — MCPS — — — — Weighted average common shares used in diluted earnings per common share calculations 60,190,103 61,804,492 60,640,945 62,460,245 Earnings per common share - Basic Distributed earnings $ 0.62 $ 0.60 $ 1.91 $ 1.82 Undistributed (losses) earnings (1.20) (1.56) 2.87 2.06 Net (loss) income attributable to common stockholders $ (0.58) $ (0.96) $ 4.78 $ 3.88 Earnings per common share - Diluted (1) Distributed earnings $ 0.62 $ 0.60 $ 1.90 $ 1.81 Undistributed (losses) earnings (1.20) (1.56) 2.86 2.05 Net (loss) income attributable to common stockholders $ (0.58) $ (0.96) $ 4.76 $ 3.86 (1) In accordance with earnings per share guidance, diluted per share amounts are computed in the same manner as basic per share amounts when a loss from operations exists. |
Retirement and Other Employee B
Retirement and Other Employee Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement and Other Employee Benefits | Retirement and Other Employee BenefitsThe Company and its subsidiaries participate in a non-contributory, qualified defined benefit pension plan (“Assurant Pension Plan”) covering substantially all employees. The Company also has various non-contributory, non-qualified supplemental plans covering certain employees including the Assurant Executive Pension Plan and the Assurant Supplemental Executive Retirement Plan. The qualified and non-qualified plans are referred to as “Pension Benefits” unless otherwise noted. In addition, the Company provides certain life and health care benefits (“Retirement Health Benefits”) for retired employees and their dependents. The Pension Benefits and Retirement Health Benefits (together, the “Plans”) were frozen on March 1, 2016. In February 2020, the Company amended the Retirement Health Benefits to terminate effective December 31, 2024 (the “Termination Date”). Benefits will be paid up to the Termination Date. The Retirement Health Benefits obligations were re-measured using a discount rate of 1.55%, selected based on a cash flow analysis using a bond yield curve as of February 29, 2020, and the fair market value of the Retirement Health Benefits assets as of February 29, 2020. The remeasurement resulted in a reduction to the Retirement Health Benefits obligations of $65.6 million and a corresponding prior service credit in AOCI, which will be reclassified from AOCI as it is amortized in the net periodic benefit cost over the remaining period until the Termination Date. The following tables present the components of net periodic benefit cost for the Plans for the three and nine months ended September 30, 2020 and 2019: Qualified Pension Benefits Unfunded Non-qualified Retirement Health For the Three Months Ended September 30, For the Three Months Ended September 30, For the Three Months Ended September 30, 2020 2019 2020 2019 2020 2019 Interest cost $ 5.1 $ 6.2 $ 0.5 $ 0.8 $ 0.1 $ 0.6 Expected return on plan assets (7.7) (8.7) — — (0.8) (0.5) Amortization of prior service credit — — — — (3.4) — Amortization of net loss 0.7 — 0.6 0.2 — (0.6) Net periodic benefit cost $ (1.9) $ (2.5) $ 1.1 $ 1.0 $ (4.1) $ (0.5) Qualified Pension Benefits Unfunded Nonqualified Retirement Health For the Nine Months Ended September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 2020 2019 Interest cost $ 15.3 $ 19.3 $ 1.5 $ 2.2 $ 0.6 $ 2.4 Expected return on plan assets (23.1) (26.7) — — (1.3) (1.4) Amortization of prior service credit — — — — (7.9) — Amortization of net loss (gain) 2.1 — 1.7 0.8 — (0.6) Net periodic benefit cost $ (5.7) $ (7.4) $ 3.2 $ 3.0 $ (8.6) $ 0.4 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Letters of Credit In the normal course of business, letters of credit are issued primarily to support reinsurance arrangements in which the Company is the reinsurer. These letters of credit are supported by commitments under which the Company is required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. The Company had $7.6 million and $12.1 million of letters of credit outstanding as of September 30, 2020 and December 31, 2019, respectively. Legal and Regulatory Matters The Company is involved in a variety of litigation and legal and regulatory proceedings relating to its current and past business operations and, from time to time, it may become involved in other such actions. In particular, the Company is a defendant in class actions in a number of jurisdictions regarding its Lender-placed Insurance programs. These cases assert a variety of claims under a number of legal theories. The plaintiffs typically seek premium refunds and other relief. The Company continues to defend itself vigorously in these class actions. The Company has participated and may participate in settlements on terms that the Company considers reasonable. The Company has established an accrued liability for certain legal and regulatory proceedings. The possible loss or range of loss resulting from such litigation and regulatory proceedings, if any, in excess of the amounts accrued is inherently unpredictable and uncertain. Consequently, no estimate can be made of any possible loss or range of loss in excess of the accrual. Although the Company cannot predict the outcome of any pending legal or regulatory proceeding, or the potential losses, fines, penalties or equitable relief, if any, that may result, it is possible that such outcome could have a material adverse effect on the Company’s consolidated results of operations or cash flows for an individual reporting period. However, on the basis of currently available information, management does not believe that the pending matters are likely to have a material adverse effect, individually or in the aggregate, on the Company’s financial condition. Risks and Uncertainties The Company is actively monitoring developments related to the COVID-19 pandemic to assess the ongoing impact on its business, results of operations and financial condition. While continuing to evolve, the COVID-19 pandemic has caused significant global economic and financial market disruption, resulting in increased financial market volatility, business and operational challenges such as the temporary closures of businesses, and overall diminished expectations for the economy and the financial markets. At this time, it is not possible to estimate how long it will take to halt the spread of the virus or the long-term effects that the COVID-19 pandemic could have on the economy or the Company’s business. The extent to which the COVID-19 pandemic impacts the Company’s business, results of operations or financial condition, including demand for the Company’s products and services and the value of the Company’s investment portfolio and other tangible or intangible assets, among other impacts, will depend on future developments which are highly uncertain and difficult to predict. These include the severity and duration of the pandemic and the actions taken by government authorities and other third parties to contain or address its impact. Even after the COVID-19 outbreak has subsided, the Company may experience materially adverse impacts to its business, results of operations and financial condition as a result of the pandemic’s global economic impact. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Acquisition of HYLA Mobile In October 2020, the Company announced the signing of a definitive agreement to acquire HYLA Mobile, a provider of smartphone software and trade-in and upgrade services, for $325.0 million. The acquisition is expected to close by the end of 2020, subject to regulatory and other customary approvals, and to be funded through a combination of existing cash at the holding company and new debt to be issued before closing. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, these statements do not include all of the information and notes required by GAAP for complete financial statements. The interim financial data as of September 30, 2020 and for the three and nine months ended September 30, 2020 and 2019 is unaudited. In the opinion of management, the interim data includes all adjustments necessary for a fair statement of the results for the interim periods. The unaudited interim Consolidated Financial Statements include the accounts of the Company and all of its wholly owned subsidiaries. All inter-company transactions and balances are eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Measurement of credit losses on financial instruments held at amortized cost (“CECL”) : In June 2016, the Financial Accounting Standards Board (“FASB”) issued amended guidance on reporting credit losses for assets held at amortized cost and available for sale debt securities (codified in the FASB Accounting Standards Codification Topic 326 (“ASC 326”)). For assets held at amortized cost, the amended guidance eliminates the probable recognition threshold and instead requires an entity to reflect the current estimate of all expected credit losses. For available for sale debt securities, credit losses are measured in a manner similar to accounting requirements in effect prior to adoption; however, the amended guidance requires that credit-related impairment losses be presented as an allowance rather than as a permanent impairment. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, premium receivables, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company adopted this standard as of January 1, 2020. Refer to Note 7 for additional information. Customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract: In August 2018, the FASB issued guidance aligning the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. For these arrangements, the guidance also limits the period to expense capitalized implementation costs based on the term of the hosting agreement, including the noncancelable period of the arrangement plus periods covered by options to extend the arrangement that are reasonably certain of exercise. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments. The Company adopted the guidance on its effective date of January 1, 2020 with no material impact on its financial position and results of operations. Not Yet Adopted Targeted improvements to the accounting for long-duration contracts : In August 2018, the FASB issued guidance that provides targeted improvements to the accounting for long-duration contracts. The guidance includes the following primary changes: assumptions supporting benefit reserves will no longer be locked-in but must be updated at least annually with the impact of changes to the liability reflected in earnings (except for discount rates); the discount rate assumptions will be based on the upper-medium grade (low credit risk) fixed-income instrument yield instead of the earnings rate of invested assets; the discount rate must be evaluated at each reporting date and the impact of changes to the liability estimate as a result of updating the discount rate assumption is required to be recognized in other comprehensive income; the provision for adverse deviation is eliminated; and premium deficiency testing is eliminated. Other noteworthy changes include the following: differing models for amortizing deferred acquisition costs will become uniform for all long-duration contracts based on a constant rate over the expected term of the related in-force contracts; all market risk benefits associated with deposit contracts must be reported at fair value with changes reflected in income except for changes related to credit risk which will be recognized in other comprehensive income; and disclosures will be expanded to include disaggregated roll forwards of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs, as well as information about significant inputs, judgments, assumptions and methods used in measurement. The guidance will be effective for the Company beginning January 1, 2022, including interim periods within that year. Early adoption is permitted. Generally, the amendments are applied retrospectively as of the beginning of the earliest period presented with two transition options available for changing the assumptions. In July 2020, the FASB issued a proposed accounting standards update that, if adopted, would extend the effective date of this guidance for the Company to January 1, 2023 (with early adoption permitted) and the application transition date would be January 1, 2022. This guidance will apply to the Company’s preneed life insurance policies, as well as its annuity and universal life products (which are no longer offered and are in run-off). The Company is evaluating the requirements of this guidance and the potential impact on the Company’s financial position and results of operations. Simplifying the Accounting for Income Taxes : In December 2019, the FASB issued new guidance to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The standard will be effective for the Company beginning on January 1, 2021, including interim periods within that year. Early adoption is permitted, including adoption in any interim period. The Company is evaluating the impact of adopting this new accounting guidance on the consolidated financial statements. Facilitation of the Effects of Reference Rate Reform on Financial Reporting: In March 2020, the FASB issued guidance which provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The relief is applicable only to legacy contracts if the amendments made to the agreements are solely for reference rate reform activities. The provisions must be applied consistently for all relevant transactions other than derivatives, which may be applied at a hedging relationship level. The guidance is effective upon issuance. The guidance on contract modifications is applied prospectively from any date beginning March 12, 2020. Unlike other topics, the provisions of this update are only available until December 31, 2022, when the reference rate replacement activity is expected to have been completed. As LIBOR is expected to be discontinued after 2021, the Company is evaluating the provisions of this new accounting guidance and the impact to debt, investments and derivatives that have references to LIBOR and the subsequent transition to alternative reference rates. Improvements to Convertible Instruments and Contracts in an Entity’s Own Equity : In August 2020, the FASB issued guidance that simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The guidance removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more contracts in an entity’s own equity to qualify for it. The guidance also simplifies the diluted earnings per common share (“EPS”) calculation in the areas of convertible instruments and instruments that qualify for the derivatives scope exception for contracts in an entity’s own equity to address accounting for the guidance changes to the classification, recognition and measurement. This guidance will be effective for the Company beginning January 1, 2022. Early adoption is permitted. The Company is evaluating the requirements of this guidance and the potential impact on its financial position and results of operations. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Impact of Adoption | The following table illustrates the impact of adoption: As of January 1, 2020 Prior to adoption As reported on adoption Impact of adoption Financial assets, at amortized cost: Reinsurance recoverables $ 9,593.4 $ 9,570.9 $ (22.5) Premiums and accounts receivable, net 1,692.8 1,691.0 (1.8) Commercial mortgage loans on real estate 815.0 813.4 (1.6) Total $ 12,101.2 $ 12,075.3 (25.9) Tax effect 5.5 Cumulative effect of adoption $ (20.4) |
Reinsurance Recoverable, Allowance for Credit Loss | The following table presents the changes in the CECL allowance for reinsurance recoverables by portfolio segment for the nine months ended September 30, 2020. Global Lifestyle Global Housing Global Preneed Corporate and Other Total Balance, December 31, 2019 $ 2.5 $ 0.3 $ — $ — $ 2.8 Cumulative effect of adoption 3.9 0.7 0.2 17.7 22.5 Incremental allowance 0.1 (0.4) — 3.1 2.8 Recoveries (2.5) — — — (2.5) Other — — (0.1) — (0.1) Balance, September 30, 2020 $ 4.0 $ 0.6 $ 0.1 $ 20.8 $ 25.5 |
Premium and Account Receivables, Allowance for Credit Loss | The following table presents the changes in the allowance for credit losses by portfolio segment for premium and account receivables for the nine months ended September 30, 2020. Global Lifestyle Global Housing Global Preneed Corporate and Other Total Balance, December 31, 2019 $ 14.2 $ 0.2 $ 0.5 $ 0.4 $ 15.3 Cumulative effect of adoption 1.3 0.5 — — 1.8 Acquired allowance as of acquisition date 0.4 — — — 0.4 Incremental allowance 2.2 1.1 — 0.2 3.5 Recoveries (1.4) — — — (1.4) Write-offs (3.4) — — — (3.4) Foreign currency translation (0.3) — — — (0.3) Balance, September 30, 2020 $ 13.0 $ 1.8 $ 0.5 $ 0.6 $ 15.9 |
Credit Quality Indicators | The following table presents the amortized cost basis of commercial mortgage loans, excluding allowance for credit losses, by origination year for certain key credit quality indicators at September 30, 2020. Origination Year 2019 2018 2017 2016 Prior Total % of Total Loan to value ratios (1): 70% and less $ 109.2 $ 187.9 $ 146.2 $ 90.7 $ 225.6 $ 759.6 97.6 % 71% to 80% 7.0 — — 6.9 — 13.9 1.8 % 81% to 95% — — — — 4.5 4.5 0.6 % Total $ 116.2 $ 187.9 $ 146.2 $ 97.6 $ 230.1 $ 778.0 100.0 % Origination Year 2019 2018 2017 2016 Prior Total % of Total Debt service coverage ratios (2): Greater than 2.0 $ 37.3 $ 71.2 $ 72.3 $ 67.2 $ 106.3 $ 354.3 45.5 % 1.5 to 2.0 41.6 73.7 47.7 20.8 55.0 238.8 30.7 % 1.0 to 1.5 37.3 43.0 26.2 9.6 64.5 180.6 23.2 % Less than 1.0 — — — — 4.3 4.3 0.6 % Total $ 116.2 $ 187.9 $ 146.2 $ 97.6 $ 230.1 $ 778.0 100.0 % (1) LTV ratio derived from current loan balance divided by the fair value of the property. The fair value of the underlying commercial properties is updated at least annually. (2) DSC ratio calculated using most recent reported operating income results from property operators divided by annual debt service coverage. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Financial Information by Segment | The following tables summarize selected financial information by segment: Three Months Ended September 30, 2020 Global Lifestyle Global Housing Global Preneed Corporate Consolidated Revenues Net earned premiums $ 1,633.2 $ 453.6 $ 16.0 $ — $ 2,102.8 Fees and other income 171.8 37.7 35.9 0.5 245.9 Net investment income 44.6 16.5 70.1 3.9 135.1 Net realized gains on investments — — — 16.6 16.6 Amortization of deferred gains on disposal of businesses — — — 2.1 2.1 Total revenues 1,849.6 507.8 122.0 23.1 2,502.5 Benefits, losses and expenses Policyholder benefits 365.4 272.8 71.1 0.3 709.6 Amortization of deferred acquisition costs and value of business acquired 870.5 56.8 18.9 — 946.2 Underwriting, general and administrative expenses 480.8 162.2 15.3 29.2 687.5 Goodwill impairment — — — 137.8 137.8 Interest expense — — — 25.5 25.5 Total benefits, losses and expenses 1,716.7 491.8 105.3 192.8 2,506.6 Segment income (loss) before provision (benefit) for income tax 132.9 16.0 16.7 (169.7) (4.1) Provision (benefit) for income taxes 26.3 2.9 3.5 (6.3) 26.4 Segment income (loss) after taxes 106.6 13.1 13.2 (163.4) (30.5) Less: Net loss attributable to non-controlling interests — — — 0.3 0.3 Net income (loss) attributable to stockholders 106.6 13.1 13.2 (163.1) (30.2) Less: Preferred stock dividends — — — (4.7) (4.7) Net income (loss) attributable to common stockholders $ 106.6 $ 13.1 $ 13.2 $ (167.8) $ (34.9) As of September 30, 2020 Segment assets: $ 23,563.3 $ 4,194.2 $ 7,507.0 $ 8,318.1 $ 43,582.6 Three Months Ended September 30, 2019 Global Lifestyle Global Housing Global Preneed Corporate Consolidated Revenues Net earned premiums $ 1,525.1 $ 475.2 $ 15.1 $ — $ 2,015.4 Fees and other income 224.2 35.1 35.7 0.1 295.1 Net investment income 62.1 22.4 73.0 12.0 169.5 Net realized gains on investments — — — 14.9 14.9 Amortization of deferred gains on disposal of businesses — — — 4.4 4.4 Total revenues 1,811.4 532.7 123.8 31.4 2,499.3 Benefits, losses and expenses Policyholder benefits 392.1 245.8 67.3 — 705.2 Amortization of deferred acquisition costs and value of business acquired 791.9 47.3 30.3 — 869.5 Underwriting, general and administrative expenses 496.6 187.6 18.2 62.1 764.5 Iké net losses — — — 121.1 121.1 Interest expense — — — 32.2 32.2 Loss on extinguishment of debt — — — 31.4 31.4 Total benefits, losses and expenses 1,680.6 480.7 115.8 246.8 2,523.9 Segment income (loss) before provision (benefit) for income tax 130.8 52.0 8.0 (215.4) (24.6) Provision (benefit) for income taxes 28.7 10.4 0.6 (11.1) 28.6 Segment income (loss) after taxes 102.1 41.6 7.4 (204.3) (53.2) Less: Net income attributable to non-controlling interest — — — (1.6) (1.6) Net income (loss) attributable to stockholders 102.1 41.6 7.4 (205.9) (54.8) Less: Preferred stock dividends — — — (4.7) (4.7) Net income (loss) attributable to common stockholders $ 102.1 $ 41.6 $ 7.4 $ (210.6) $ (59.5) Nine Months Ended September 30, 2020 Global Lifestyle Global Housing Global Preneed Corporate Consolidated Revenues Net earned premiums $ 4,799.0 $ 1,374.6 $ 49.4 $ — $ 6,223.0 Fees and other income 721.6 106.0 106.2 0.5 934.3 Net investment income 143.5 54.9 210.3 19.6 428.3 Net realized losses on investments — — — (54.6) (54.6) Amortization of deferred gains on disposal of businesses — — — 8.7 8.7 Total revenues 5,664.1 1,535.5 365.9 (25.8) 7,539.7 Benefits, losses and expenses Policyholder benefits 1,044.7 651.9 211.6 0.7 1,908.9 Amortization of deferred acquisition costs and value of business acquired 2,519.7 169.9 56.1 — 2,745.7 Underwriting, general and administrative expenses 1,649.4 496.6 48.4 137.4 2,331.8 Goodwill impairment — — — 137.8 137.8 Iké net losses — — — 5.9 5.9 Interest expense — — — 77.7 77.7 Total benefits, losses and expenses 5,213.8 1,318.4 316.1 359.5 7,207.8 Segment income (loss) before provision (benefit) for income tax 450.3 217.1 49.8 (385.3) 331.9 Provision (benefit) for income taxes 101.0 44.4 10.6 (127.8) 28.2 Segment income (loss) after taxes 349.3 172.7 39.2 (257.5) 303.7 Less: Net income attributable to non-controlling interests — — — (1.1) (1.1) Net income (loss) attributable to stockholders 349.3 172.7 39.2 (258.6) 302.6 Less: Preferred stock dividends — — — (14.0) (14.0) Net income (loss) attributable to common stockholders $ 349.3 $ 172.7 $ 39.2 $ (272.6) $ 288.6 Nine Months Ended September 30, 2019 Global Lifestyle Global Housing Global Preneed Corporate Consolidated Revenues Net earned premiums $ 4,499.1 $ 1,407.1 $ 46.3 $ — $ 5,952.5 Fees and other income 740.9 113.3 103.2 2.1 959.5 Net investment income 177.5 66.6 212.7 33.2 490.0 Net realized gains on investments — — — 61.5 61.5 Amortization of deferred gains on disposal of businesses — — — 16.9 16.9 Total revenues 5,417.5 1,587.0 362.2 113.7 7,480.4 Benefits, losses and expenses Policyholder benefits 1,152.2 652.5 202.1 0.1 2,006.9 Amortization of deferred acquisition costs and value of business acquired 2,238.4 158.7 65.5 — 2,462.6 Underwriting, general and administrative expenses 1,622.6 541.6 49.8 174.1 2,388.1 Iké net losses — — — 130.5 130.5 Interest expense — — — 85.2 85.2 Loss on extinguishment of debt — — — 31.4 31.4 Total benefits, losses and expenses 5,013.2 1,352.8 317.4 421.3 7,104.7 Segment income (loss) before provision (benefit) for income tax 404.3 234.2 44.8 (307.6) 375.7 Provision (benefit) for income taxes 92.3 48.4 8.7 (31.7) 117.7 Segment income (loss) after taxes 312.0 185.8 36.1 (275.9) 258.0 Less: Net income attributable to non-controlling interest — — — (3.0) (3.0) Net income (loss) attributable to stockholders 312.0 185.8 36.1 (278.9) 255.0 Less: Preferred stock dividends — — — (14.0) (14.0) Net income (loss) attributable to common stockholders $ 312.0 $ 185.8 $ 36.1 $ (292.9) $ 241.0 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and OTTI | The following tables show the cost or amortized cost, allowance for credit losses, gross unrealized gains and losses, fair value, and impairment included within accumulated other comprehensive income (“AOCI”) of the Company’s fixed maturity securities as of the dates indicated: September 30, 2020 Cost or Allowance for Credit Losses Gross Gross Fair Value Impairment in Fixed maturity securities: U.S. government and government agencies and authorities $ 125.1 $ — $ 6.8 $ — $ 131.9 $ — States, municipalities and political subdivisions 224.6 — 34.2 (0.1) 258.7 — Foreign governments 872.2 — 149.7 (1.0) 1,020.9 — Asset-backed 529.9 — 8.5 (6.0) 532.4 — Commercial mortgage-backed 327.2 — 16.8 (3.8) 340.2 — Residential mortgage-backed 1,084.7 — 95.8 (0.2) 1,180.3 2.5 U.S. corporate 6,001.0 (1.5) 1,100.3 (23.2) 7,076.6 17.6 Foreign corporate 2,214.6 — 341.6 (2.7) 2,553.5 — Total fixed maturity securities $ 11,379.3 $ (1.5) $ 1,753.7 $ (37.0) $ 13,094.5 $ 20.1 December 31, 2019 Cost or Gross Gross Fair Value Impairment in Fixed maturity securities: U.S. government and government agencies and authorities $ 188.9 $ 5.3 $ (0.1) $ 194.1 $ — States, municipalities and political subdivisions 216.1 26.4 — 242.5 — Foreign governments 916.9 94.3 (0.8) 1,010.4 — Asset-backed 502.4 3.1 (2.3) 503.2 — Commercial mortgage-backed 212.7 10.2 (0.8) 222.1 — Residential mortgage-backed 1,235.3 52.4 (1.4) 1,286.3 3.1 U.S. corporate 5,679.8 818.9 (2.1) 6,496.6 16.5 Foreign corporate 2,112.7 255.4 (0.9) 2,367.2 — Total fixed maturity securities $ 11,064.8 $ 1,266.0 $ (8.4) $ 12,322.4 $ 19.6 |
Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity | The cost or amortized cost and fair value of fixed maturity securities as of September 30, 2020 by contractual maturity are shown below. Actual maturities may differ from contractual maturities because issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. Cost or Fair Value Due in one year or less $ 463.5 $ 470.4 Due after one year through five years 2,547.5 2,717.6 Due after five years through ten years 2,439.3 2,744.2 Due after ten years 3,987.2 5,109.4 Total 9,437.5 11,041.6 Asset-backed 529.9 532.4 Commercial mortgage-backed 327.2 340.2 Residential mortgage-backed 1,084.7 1,180.3 Total $ 11,379.3 $ 13,094.5 |
Net Realized Gains (Losses), Including Other-Than-Temporary Impairments | The following table sets forth the net realized gains (losses), including impairment, recognized in the consolidated statements of operations for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net realized gains (losses) related to sales and other: Fixed maturity securities $ 1.8 $ 7.4 $ 7.6 $ 15.1 Equity securities (1) 16.9 9.4 (9.9) 46.3 Commercial mortgage loans on real estate (2.8) — (4.6) — Other investments 2.2 0.3 (0.8) 5.4 Consolidated investment entities (2) — (2.0) (32.3) (4.2) Total net realized gains (losses) related to sales and other 18.1 15.1 (40.0) 62.6 Net realized losses related to impairments: Fixed maturity securities (3) (1.5) (0.2) (3.2) (1.1) Other investments (4) — — (11.4) — Total net realized losses related to impairments (1.5) (0.2) (14.6) (1.1) Total net realized gains (losses) $ 16.6 $ 14.9 $ (54.6) $ 61.5 (1) Nine months ended September 30, 2020 and 2019 includes $2.2 million and $10.4 million, respectively, of gains on equity investment holdings accounted for under the measurement alternative. There were no changes in fair value recorded on equity investments holdings accounted for under the measurement alternative for the three months ended September 30, 2020 and 2019. (2) Consists of net realized losses from the change in fair value of the Company’s direct investment in collateralized loan obligations (“CLOs”). Refer to Notes 5 and 12 for additional information. (3) Includes credit impairment charges recognized in net realized gains (losses) of $1.5 million on fixed maturity securities available for sale for the three and nine months ended September 30, 2020. Refer to Note 7 for additional information. |
Unrealized Gains on Equity Securities | The following table sets forth the portion of unrealized gains (losses) related to equity securities for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net gains (losses) recognized on equity securities $ 16.9 $ 9.4 $ (9.9) $ 46.3 Less: Net realized gains related to sales of equity securities 0.4 0.9 1.3 — Total net unrealized gains (losses) on equity securities held $ 16.5 $ 8.5 $ (11.2) $ 46.3 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities as of September 30, 2020 and December 31, 2019 were as follows: September 30, 2020 Less than 12 months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Fixed maturity securities: States, municipalities and political subdivisions 24.7 (0.1) — — 24.7 (0.1) Foreign governments 14.9 (1.0) — — 14.9 (1.0) Asset-backed 112.5 (3.8) 83.9 (2.2) 196.4 (6.0) Commercial mortgage-backed 53.2 (2.9) 3.9 (0.9) 57.1 (3.8) Residential mortgage-backed 26.2 (0.1) 1.5 (0.1) 27.7 (0.2) U.S. corporate 307.9 (22.0) 15.7 (1.2) 323.6 (23.2) Foreign corporate 112.9 (2.7) — — 112.9 (2.7) Total fixed maturity securities $ 652.3 $ (32.6) $ 105.0 $ (4.4) $ 757.3 $ (37.0) December 31, 2019 Less than 12 months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Fixed maturity securities: U.S. government and government agencies and authorities $ 21.9 $ (0.1) $ — $ — $ 21.9 $ (0.1) Foreign governments 115.7 (0.8) — — 115.7 (0.8) Asset-backed 66.9 (0.2) 105.1 (2.1) 172.0 (2.3) Commercial mortgage-backed 20.0 (0.3) 4.3 (0.5) 24.3 (0.8) Residential mortgage-backed 82.5 (0.6) 82.6 (0.8) 165.1 (1.4) U.S. corporate 87.5 (1.4) 14.4 (0.7) 101.9 (2.1) Foreign corporate 45.8 (0.7) 7.5 (0.2) 53.3 (0.9) Total fixed maturity securities $ 440.3 $ (4.1) $ 213.9 $ (4.3) $ 654.2 $ (8.4) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Variable Interest Entities [Abstract] | |
Balances of assets and liabilities held by consolidated investment entities at fair value | The following table presents the Company’s fair value hierarchy for financial assets and liabilities held by consolidated investment entities measured at fair value on a recurring basis as of December 31, 2019. December 31, 2019 Total Level 1 Level 2 Level 3 Financial Assets Investments: Cash and cash equivalents $ 32.9 $ 32.9 (1) $ — $ — Corporate debt securities 1,850.7 — 1,850.7 — Real estate fund 107.2 — — 107.2 Total financial assets $ 1,990.8 $ 32.9 $ 1,850.7 $ 107.2 Financial Liabilities Collateralized loan obligation notes $ 1,603.1 $ — $ 1,603.1 $ — Total financial liabilities $ 1,603.1 $ — $ 1,603.1 $ — |
Schedule of carrying values of level 3 assets | The following table summarizes the change in balance sheet carrying value associated with Level 3 assets held by consolidated investment entities measured at fair value during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Balance, beginning of period $ 54.5 $ 138.2 $ 107.2 $ 112.0 Purchases — — — 15.4 Sales — (5.6) (61.0) (5.6) Deconsolidation adjustments (1) (54.5) — (54.5) — Total income included in earnings — 6.5 8.3 17.3 Balance, end of period $ — $ 139.1 $ — $ 139.1 (1) Deconsolidation adjustments include $8.8 million related to non-controlling interests and $45.7 million related to investments retained, which are now included in other investments. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Hierarchy for Assets and Liabilities | The following tables present the Company’s fair value hierarchy for assets and liabilities measured at fair value on a recurring basis as of September 30, 2020 and December 31, 2019. The amounts presented below for short-term investments, other investments, cash equivalents, other assets, assets held in and liabilities related to separate accounts and other liabilities differ from the amounts presented in the consolidated balance sheets because only certain investments or certain assets and liabilities within these line items are measured at estimated fair value. Other investments are comprised of investments in the Assurant Investment Plan (“AIP”), the American Security Insurance Company Investment Plan, the Assurant Deferred Compensation Plan, a modified coinsurance arrangement and other derivatives. Other liabilities are comprised of investments in the AIP and other derivatives, including the put/call for Iké. The fair value amount and the majority of the associated levels presented for other investments and assets and liabilities held in separate accounts are received directly from third parties. September 30, 2020 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 131.9 $ — $ 131.9 $ — States, municipalities and political subdivisions 258.7 — 258.7 — Foreign governments 1,020.9 0.6 1,020.0 0.3 Asset-backed 532.4 — 531.6 0.8 Commercial mortgage-backed 340.2 — 320.4 19.8 Residential mortgage-backed 1,180.3 — 1,177.6 2.7 U.S. corporate 7,076.6 — 7,050.1 26.5 Foreign corporate 2,553.5 — 2,520.0 33.5 Equity securities: Mutual funds 42.6 42.6 — — Common stocks 20.4 18.6 0.7 1.1 Non-redeemable preferred stocks 321.4 — 319.3 2.1 Short-term investments 217.3 174.8 (2) 42.5 — Other investments 231.7 66.4 (1) 165.3 (3) — Cash equivalents 1,592.4 1,564.8 (2) 27.6 (3) — Other assets 1.0 — 0.8 (4) 0.2 (4) Assets held in separate accounts 1,972.6 1,802.1 (1) 170.5 (3) — Total financial assets $ 17,493.9 $ 3,669.9 $ 13,737.0 $ 87.0 Financial Liabilities Other liabilities $ 66.4 $ 66.4 (1) $ — $ — Liabilities related to separate accounts 1,972.6 1,802.1 (1) 170.5 (3) — Total financial liabilities $ 2,039.0 $ 1,868.5 $ 170.5 $ — December 31, 2019 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 194.1 $ — $ 194.1 $ — States, municipalities and political subdivisions 242.5 — 242.5 — Foreign governments 1,010.4 0.3 1,010.1 — Asset-backed 503.2 — 503.2 — Commercial mortgage-backed 222.1 — 198.6 23.5 Residential mortgage-backed 1,286.3 — 1,286.3 — U.S. corporate 6,496.6 — 6,494.8 1.8 Foreign corporate 2,367.2 — 2,331.5 35.7 Equity securities: Mutual funds 45.5 45.5 — — Common stocks 23.5 22.8 0.7 — Non-redeemable preferred stocks 319.5 — 317.3 2.2 Short-term investments 367.5 271.4 (2) 96.1 — Other investments 234.6 70.3 (1) 164.3 (3) — Cash equivalents 1,287.5 1,277.8 (2) 9.7 (3) — Assets held in separate accounts 1,806.3 1,623.7 (1) 182.6 (3) — Total financial assets $ 16,406.8 $ 3,311.8 $ 13,031.8 $ 63.2 Financial Liabilities Other liabilities $ 172.0 $ 70.3 (1) $ 101.5 (5) $ 0.2 Liabilities related to separate accounts 1,806.3 1,623.7 (1) 182.6 (3) — Total financial liabilities $ 1,978.3 $ 1,694.0 $ 284.1 $ 0.2 (1) Primarily includes mutual funds and related obligations. (2) Primarily includes money market funds. (3) Primarily includes fixed maturity securities and related obligations. (4) Primarily includes derivative assets. (5) Includes the put/call related to the investment in Iké. See Note 5 for more information. |
Carrying Value and Fair Value of the Financial Instruments that are Not recognized or are Not Carried at Fair Value | The following tables disclose the carrying value, fair value and hierarchy level of the financial instruments that are not recognized or are not carried at fair value in the consolidated balance sheets as of the dates indicated: September 30, 2020 Fair Value Carrying Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 771.1 $ 827.0 $ — $ — $ 827.0 Other investments 165.4 165.4 30.3 — 135.1 Other assets 24.8 24.8 — — 24.8 Total financial assets $ 961.3 $ 1,017.2 $ 30.3 $ — $ 986.9 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 527.1 $ 585.3 $ — $ — $ 585.3 Funds withheld under reinsurance 361.2 361.2 361.2 — — Debt 2,008.6 2,204.3 — 2,204.3 — Total financial liabilities $ 2,896.9 $ 3,150.8 $ 361.2 $ 2,204.3 $ 585.3 December 31, 2019 Fair Value Carrying Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 815.0 $ 843.8 $ — $ — $ 843.8 Other investments 140.0 140.0 30.7 — 109.3 Other assets 28.9 28.9 — — 28.9 Total financial assets $ 983.9 $ 1,012.7 $ 30.7 $ — $ 982.0 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 551.6 $ 588.4 $ — $ — $ 588.4 Funds withheld under reinsurance 319.4 319.4 319.4 — — Debt 2,006.9 2,190.6 — 2,190.6 — Total financial liabilities $ 2,877.9 $ 3,098.4 $ 319.4 $ 2,190.6 $ 588.4 (1) Only the fair value of the Company’s policy reserves for investment-type contracts (those without significant mortality or morbidity risk) are reflected in the table above. |
Reserves (Tables)
Reserves (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance Loss Reserves [Abstract] | |
Roll Forward of Claims and Benefits Payable | The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and is comprised of case and incurred but not reported (“IBNR”) reserves. Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively. The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented. For the Nine Months Ended September 30, 2020 2019 Claims and benefits payable, at beginning of period $ 2,687.7 $ 2,813.7 Less: Reinsurance ceded and other (1,900.0) (2,053.7) Net claims and benefits payable, at beginning of period 787.7 760.0 Incurred losses and loss adjustment expenses related to: Current year 1,951.4 2,034.2 Prior years (43.0) (27.3) Total incurred losses and loss adjustment expenses 1,908.4 2,006.9 Paid losses and loss adjustment expenses related to: Current year 1,368.4 1,468.4 Prior years 463.0 470.4 Total paid losses and loss adjustment expenses 1,831.4 1,938.8 Net claims and benefits payable, at end of period 864.7 828.1 Plus: Reinsurance ceded and other (1) 1,893.5 2,043.0 Claims and benefits payable, at end of period (1) $ 2,758.2 $ 2,871.1 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table shows the principal amount and carrying value of the Company’s outstanding debt, less unamortized discount and issuance costs as applicable, as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 Principal Amount Carrying Value Principal Amount Carrying Value Floating Rate Senior Notes due March 2021 (1) $ 50.0 $ 50.0 $ 50.0 $ 49.9 4.00% Senior Notes due March 2023 350.0 348.8 350.0 348.5 4.20% Senior Notes due September 2023 300.0 298.2 300.0 297.8 4.90% Senior Notes due March 2028 300.0 297.1 300.0 296.8 3.70% Senior Notes due February 2030 350.0 347.0 350.0 346.8 6.75% Senior Notes due February 2034 275.0 272.2 275.0 272.1 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 (2) 400.0 395.3 400.0 395.0 Total Debt $ 2,008.6 $ 2,006.9 (1) Bears floating interest at a rate equal to three-month LIBOR plus 1.25% per annum. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income, Net of Tax | The following tables summarize those reclassification adjustments (net of taxes) for the periods indicated: Three Months Ended September 30, 2020 Foreign Net unrealized Net unrealized gains on derivative transactions Credit related impairment Non-credit related impairment Unamortized net losses on Pension Plans Accumulated Balance at June 30, 2020 $ (379.0) $ 989.1 $ 15.9 $ — $ 14.3 $ (71.4) $ 568.9 Change in accumulated other comprehensive income (loss) before reclassifications 35.3 53.8 — 1.2 1.5 (0.5) 91.3 Amounts reclassified from accumulated other comprehensive income (loss) — 0.3 (0.6) — — (1.7) (2.0) Net current-period other comprehensive income (loss) 35.3 54.1 (0.6) 1.2 1.5 (2.2) 89.3 Balance at September 30, 2020 $ (343.7) $ 1,043.2 $ 15.3 $ 1.2 $ 15.8 $ (73.6) $ 658.2 Three Months Ended September 30, 2019 Foreign Net unrealized Net unrealized gains on derivative transactions Credit related impairment Non-credit related impairment Unamortized net (losses) gains on Pension Plans Accumulated Balance at June 30, 2019 $ (366.6) $ 778.4 $ 15.2 $ — $ 15.6 $ (113.9) $ 328.7 Change in accumulated other comprehensive (loss) income before reclassifications (23.6) 101.0 0.5 — 0.2 0.1 78.2 Amounts reclassified from accumulated other comprehensive (loss) income — (3.6) 2.2 — — (0.3) (1.7) Net current-period other comprehensive (loss) income (23.6) 97.4 2.7 — 0.2 (0.2) 76.5 Balance at September 30, 2019 $ (390.2) $ 875.8 $ 17.9 $ — $ 15.8 $ (114.1) $ 405.2 Nine Months Ended September 30, 2020 Foreign Net unrealized Net unrealized gains on derivative transactions Credit related impairment Non-credit related impairment Unamortized net (losses) on Pension Plans (1) Accumulated Balance at December 31, 2019 $ (358.9) $ 856.5 $ 17.1 $ — $ 15.5 $ (118.7) $ 411.5 Change in accumulated other comprehensive (loss) income before reclassifications (4.5) 189.1 — 1.2 0.3 48.4 234.5 Amounts reclassified from accumulated other comprehensive income (loss) 19.7 (2.4) (1.8) — — (3.3) 12.2 Net current-period other comprehensive income (loss) 15.2 186.7 (1.8) 1.2 0.3 45.1 246.7 Balance at September 30, 2020 $ (343.7) $ 1,043.2 $ 15.3 $ 1.2 $ 15.8 $ (73.6) $ 658.2 Nine Months Ended September 30, 2019 Foreign Net unrealized Net unrealized gains on derivative transactions Credit related impairment Non-credit related impairment Unamortized net (losses) on Pension Plans Accumulated Balance at December 31, 2018 $ (375.6) $ 301.0 $ 18.4 $ — $ 15.1 $ (114.3) $ (155.4) Change in accumulated other comprehensive (loss) income before reclassifications (14.6) 581.4 (1.5) — 0.7 0.1 566.1 Amounts reclassified from accumulated other comprehensive (loss) income — (6.6) 1.0 — — 0.1 (5.5) Net current-period other (14.6) 574.8 (0.5) — 0.7 0.2 560.6 Balance at September 30, 2019 $ (390.2) $ 875.8 $ 17.9 $ — $ 15.8 $ (114.1) $ 405.2 (1) The Retirement Health Benefits plan was amended in February 2020, which resulted in a prior service credit recognized in other comprehensive income that will be recognized in income over the remaining period of the plan. Refer to Note 20 for additional information. |
Reclassification out of Accumulated Other Comprehensive Income | The following tables summarize the reclassifications out of AOCI for the periods indicated: Details about accumulated other comprehensive income components Amount reclassified from Affected line item in the Three Months Ended September 30, 2020 2019 Net unrealized losses (gains) on investments $ 0.3 $ (4.5) Net realized gains (losses) on investments — 0.9 Provision for income taxes $ 0.3 $ (3.6) Net of tax Net unrealized (gains) losses on derivative transactions $ (0.7) $ 2.0 Interest expense 0.1 0.2 Provision for income taxes $ (0.6) $ 2.2 Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss (gain) $ 1.3 $ (0.4) (1) Amortization of prior service credit (3.4) — (1) (2.1) (0.4) 0.4 0.1 Provision for income taxes $ (1.7) $ (0.3) Net of tax Total reclassifications for the period $ (2.0) $ (1.7) Net of tax Details about accumulated other comprehensive income components Amount reclassified from Affected line item in the Nine Months Ended September 30, 2020 2019 Foreign currency translation adjustment $ 19.7 $ — Iké net losses (see Note 5) — — Provision for income taxes $ 19.7 $ — Net of tax Net unrealized gains on investments $ (3.1) $ (8.3) Net realized gains (losses) on investments 0.7 1.7 Provision for income taxes $ (2.4) $ (6.6) Net of tax Net unrealized (gains) losses on derivative transactions $ (2.2) $ 0.5 Interest expense 0.4 0.5 Provision for income taxes $ (1.8) $ 1.0 Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss $ 3.8 $ 0.2 (1) Amortization of prior service credit (7.9) — (1) (4.1) 0.2 0.8 (0.1) Provision for income taxes $ (3.3) $ 0.1 Net of tax Total reclassifications for the period $ 12.2 $ (5.5) Net of tax (1) These AOCI components are included in the computation of net periodic pension cost. See Note 20 for additional information. |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Based Compensation Activity | The following table shows a summary of RSU activity during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 RSU compensation expense $ 7.2 $ 7.9 $ 20.8 $ 22.3 Income tax benefit (1.4) (1.4) (3.8) (4.1) RSU compensation expense, net of tax $ 5.8 $ 6.5 $ 17.0 $ 18.2 RSUs granted 32,844 29,195 294,794 254,591 Weighted average grant date fair value per unit $ 101.81 $ 108.99 $ 92.2 $ 98.86 Total fair value of vested RSUs $ 4.8 $ 6.4 $ 29.2 $ 33.2 The following table shows a summary of PSU activity during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 PSU compensation expense $ 7.6 $ 6.7 $ 19.7 $ 17.5 Income tax benefit (0.8) (1.0) (2.1) (2.5) PSU compensation expense, net of tax $ 6.8 $ 5.7 $ 17.6 $ 15.0 PSUs granted — — 302,274 246,219 Weighted average grant date fair value per unit $ — $ — $ 87.36 $ 105.23 Total fair value of vested PSUs $ 0.3 $ 1.9 $ 24.7 $ 19.6 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income, Weighted Average Common Shares Used in Calculating Basic Earnings Per Common Share and Diluted EPS | The following table presents net income, the weighted average common shares used in calculating basic EPS and those used in calculating diluted EPS for each period presented below. Diluted EPS reflects the incremental common shares from: (1) common shares issuable upon vesting of PSUs and the purchase of shares under the Employee Stock Purchase Plan (the “ESPP”) using the treasury stock method; and (2) common shares issuable upon conversion of the MCPS using the if-converted method. Refer to Notes 17 and 18 for further information regarding potential common stock issuances. The outstanding RSUs have non-forfeitable rights to dividend equivalents and are therefore included in calculating basic and diluted EPS under the two-class method. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Numerator Net (loss) income attributable to stockholders $ (30.2) $ (54.8) $ 302.6 $ 255.0 Less: Preferred stock dividends (4.7) (4.7) (14.0) (14.0) Net (loss) income attributable to common stockholders (34.9) (59.5) 288.6 241.0 Less: Common stock dividends paid (37.5) (37.3) (115.1) (113.0) Undistributed earnings $ (72.4) $ (96.8) $ 173.5 $ 128.0 Denominator Weighted average common shares outstanding used in basic earnings per common share calculations 60,190,103 61,804,492 60,384,817 62,204,242 Incremental common shares from: PSUs — — 253,982 256,003 ESPP — — 2,146 — MCPS — — — — Weighted average common shares used in diluted earnings per common share calculations 60,190,103 61,804,492 60,640,945 62,460,245 Earnings per common share - Basic Distributed earnings $ 0.62 $ 0.60 $ 1.91 $ 1.82 Undistributed (losses) earnings (1.20) (1.56) 2.87 2.06 Net (loss) income attributable to common stockholders $ (0.58) $ (0.96) $ 4.78 $ 3.88 Earnings per common share - Diluted (1) Distributed earnings $ 0.62 $ 0.60 $ 1.90 $ 1.81 Undistributed (losses) earnings (1.20) (1.56) 2.86 2.05 Net (loss) income attributable to common stockholders $ (0.58) $ (0.96) $ 4.76 $ 3.86 (1) In accordance with earnings per share guidance, diluted per share amounts are computed in the same manner as basic per share amounts when a loss from operations exists. |
Retirement and Other Employee_2
Retirement and Other Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of Net Periodic Benefit Cost | The following tables present the components of net periodic benefit cost for the Plans for the three and nine months ended September 30, 2020 and 2019: Qualified Pension Benefits Unfunded Non-qualified Retirement Health For the Three Months Ended September 30, For the Three Months Ended September 30, For the Three Months Ended September 30, 2020 2019 2020 2019 2020 2019 Interest cost $ 5.1 $ 6.2 $ 0.5 $ 0.8 $ 0.1 $ 0.6 Expected return on plan assets (7.7) (8.7) — — (0.8) (0.5) Amortization of prior service credit — — — — (3.4) — Amortization of net loss 0.7 — 0.6 0.2 — (0.6) Net periodic benefit cost $ (1.9) $ (2.5) $ 1.1 $ 1.0 $ (4.1) $ (0.5) Qualified Pension Benefits Unfunded Nonqualified Retirement Health For the Nine Months Ended September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 2020 2019 Interest cost $ 15.3 $ 19.3 $ 1.5 $ 2.2 $ 0.6 $ 2.4 Expected return on plan assets (23.1) (26.7) — — (1.3) (1.4) Amortization of prior service credit — — — — (7.9) — Amortization of net loss (gain) 2.1 — 1.7 0.8 — (0.6) Net periodic benefit cost $ (5.7) $ (7.4) $ 3.2 $ 3.0 $ (8.6) $ 0.4 |
Nature of Operations (Details)
Nature of Operations (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) $ in Millions | May 01, 2020USD ($)stateclient | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,325.8 | $ 2,343.4 | |
AFAS | |||
Business Acquisition [Line Items] | |||
Franchised dealership clients (nearly) | client | 600 | ||
Number of states | state | 40 | ||
Acquisition consideration | $ 176.9 | ||
Purchase price base | 157.5 | ||
Contingent consideration | 1.5 | ||
Purchase price adjustment | 17.9 | ||
Identifiable net liabilities assumed | 2.9 | ||
Goodwill | 104 | ||
Other intangible assets | $ 75.8 | ||
Estimated useful life (in years) | 15 years |
Dispositions (Details)
Dispositions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2014 | Jul. 31, 2020 | May 31, 2020 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Ike foreign currency hedge | [1] | $ 22 | $ 0 | ||||||
Pre-tax charges | $ 0 | $ 121.1 | 5.9 | 130.5 | |||||
CLO Asset Management Platform | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Costs associated with exit or disposal activities | 18.3 | 18.3 | |||||||
Ike | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Equity method investment ownership percentage | 40.00% | ||||||||
Amount paid to acquire investment | $ 110 | ||||||||
Impairment and put/call losses | 22.3 | 130.5 | |||||||
Ike foreign currency hedge | $ 22 | ||||||||
Pre-tax gains on derivative | 20.3 | ||||||||
Pre-tax charges | 121.1 | 5.9 | 130.5 | ||||||
Tax benefit | 6.7 | ||||||||
Tax expense on income from financial derivative | 4.3 | ||||||||
After-tax charges | $ 124.8 | 9.3 | $ 131.4 | ||||||
Disposal group, not discontinued operations | CLO Asset Management Platform | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Proceeds from sale of VIE | $ 20 | ||||||||
Additional expense related to sale of VIE | 6.1 | 7.5 | |||||||
Disposal group, not discontinued operations | Ike | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Loss on sale of subsidiary | 3.9 | ||||||||
Loss on sale of subsidiary, after tax | $ 2.9 | ||||||||
Ike Loan | Disposal group, not discontinued operations | Ike | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Loans to Iké Grupo | $ 34 | ||||||||
Ike Loan | Disposal group, not discontinued operations | Ike | Other investments | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Loans to Iké Grupo | $ 33.2 | $ 33.2 | |||||||
Ike Loan | London Interbank Offered Rate (LIBOR) | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Interest rate, basis spread | 4.25% | ||||||||
[1] | Relates to Iké disposition and related financing. Refer to Note 5 for additional information |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 137.8 | $ 0 | $ 137.8 | $ 0 |
Goodwill, impairment loss, net of tax | $ 135.6 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||
Cumulative effect of adoption | $ 5,940 | $ 5,984.5 | $ 5,682.1 | $ 5,690.4 | $ 5,760.3 | $ 5,133.9 | ||
Total allowance for credit losses | 53 | 20.3 | ||||||
Allowance for credit losses, period increase, net | 10.2 | |||||||
Total increase in the allowance for credit losses | 14.1 | |||||||
Allowance for credit loss, recovery | 3.9 | |||||||
Fixed maturity securities available for sale, allowances for credit losses | 1.5 | |||||||
Reinsurance recoverables | 9,796.2 | $ 9,593.4 | 9,593.4 | |||||
Increase in the CECL allowance for reinsurance recoverable | 2.8 | |||||||
Increase in the CECL allowance for premium and accounts receivables | $ 3.5 | |||||||
Percentage of residential mortgage-backed holdings exposure to sub-prime mortgage collateral | 40.00% | |||||||
Allowance for credit losses | $ 6.9 | 2.2 | 0.6 | |||||
Retained earnings (accumulated deficit) | $ 6,126 | 5,966.4 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cumulative effect of adoption | (20.4) | (20.4) | [1] | |||||
Total allowance for credit losses | 46.2 | |||||||
Reinsurance recoverables | (22.5) | |||||||
Retained earnings (accumulated deficit) | $ (1.3) | |||||||
A- or Better Rating | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total percentage of recoverables subject to allowance | 77.00% | |||||||
BBB or BB Rating | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total percentage of recoverables subject to allowance | 17.00% | |||||||
Not rated | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total percentage of recoverables subject to allowance | 6.00% | |||||||
Commercial mortgage loans | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit loss, period increase | $ 4.7 | |||||||
Commercial Real Estate Portfolio Segment | Commercial mortgage loans | Minimum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Commercial mortgage loans on real estate | 0.1 | 0.1 | ||||||
Commercial Real Estate Portfolio Segment | Commercial mortgage loans | Maximum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Commercial mortgage loans on real estate | 12.2 | $ 12.3 | ||||||
Underwriting, general and administrative expense | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit losses, period increase, net | 2.6 | |||||||
Net realized losses on investments | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit losses, period increase, net | 7.6 | |||||||
Ike | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Allowance for credit losses, period increase, net | $ 1.4 | |||||||
[1] | Amount relates to the adoption of a new accounting standard for accounting for expected credit losses for assets held at amortized cost, which established allowances for such expected credit losses as of January 1, 2020. Refer to Notes 3 and 7 for additional information. |
Allowance for Credit Losses - I
Allowance for Credit Losses - Impact of Adoption (Details) - USD ($) $ in Millions | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||
Reinsurance recoverables | $ 9,796.2 | $ 9,593.4 | $ 9,593.4 | |||||
Premiums and accounts receivable, net | 1,576.7 | 1,692.8 | 1,692.8 | |||||
Commercial mortgage loans on real estate | 815 | |||||||
Total | 12,101.2 | |||||||
Cumulative effect of adoption | 5,940 | $ 5,984.5 | 5,682.1 | $ 5,690.4 | $ 5,760.3 | $ 5,133.9 | ||
Cumulative Effect, Period of Adoption, Adjusted Balance | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reinsurance recoverables | 9,570.9 | |||||||
Premiums and accounts receivable, net | 1,691 | |||||||
Commercial mortgage loans on real estate | 813.4 | |||||||
Total | 12,075.3 | |||||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Reinsurance recoverables | (22.5) | |||||||
Premiums and accounts receivable, net | (1.8) | |||||||
Commercial mortgage loans on real estate | (1.6) | |||||||
Total | (25.9) | |||||||
Tax effect | $ 5.5 | |||||||
Cumulative effect of adoption | $ (20.4) | $ (20.4) | [1] | |||||
[1] | Amount relates to the adoption of a new accounting standard for accounting for expected credit losses for assets held at amortized cost, which established allowances for such expected credit losses as of January 1, 2020. Refer to Notes 3 and 7 for additional information. |
Allowance for Credit Losses - C
Allowance for Credit Losses - Changes in Reinsurance Receivables Allowance for Credit Losses (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | |
Balance, December 31, 2019 | $ 2.8 |
Incremental allowance | 2.8 |
Recoveries | (2.5) |
Other | (0.1) |
Balance, September 30, 2020 | 25.5 |
Global Lifestyle | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | |
Balance, December 31, 2019 | 2.5 |
Incremental allowance | 0.1 |
Recoveries | (2.5) |
Other | 0 |
Balance, September 30, 2020 | 4 |
Global Housing | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | |
Balance, December 31, 2019 | 0.3 |
Incremental allowance | (0.4) |
Recoveries | 0 |
Other | 0 |
Balance, September 30, 2020 | 0.6 |
Global Preneed | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | |
Balance, December 31, 2019 | 0 |
Incremental allowance | 0 |
Recoveries | 0 |
Other | (0.1) |
Balance, September 30, 2020 | 0.1 |
Corporate and Other | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | |
Balance, December 31, 2019 | 0 |
Incremental allowance | 3.1 |
Recoveries | 0 |
Other | 0 |
Balance, September 30, 2020 | 20.8 |
Cumulative Effect, Period of Adoption, Adjustment | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | |
Balance, December 31, 2019 | 22.5 |
Cumulative Effect, Period of Adoption, Adjustment | Global Lifestyle | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | |
Balance, December 31, 2019 | 3.9 |
Cumulative Effect, Period of Adoption, Adjustment | Global Housing | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | |
Balance, December 31, 2019 | 0.7 |
Cumulative Effect, Period of Adoption, Adjustment | Global Preneed | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | |
Balance, December 31, 2019 | 0.2 |
Cumulative Effect, Period of Adoption, Adjustment | Corporate and Other | |
Reinsurance Recoverables, Allowance for Credit Losses [Roll Forward] | |
Balance, December 31, 2019 | $ 17.7 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Changes in Premium and Account Receivables Allowance for Credit Losses (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | |
Balance, December 31, 2019 | $ 15.3 |
Acquired allowance as of acquisition date | 0.4 |
Incremental allowance | 3.5 |
Recoveries | (1.4) |
Write-offs | (3.4) |
Foreign currency translation | (0.3) |
Balance, September 30, 2020 | 15.9 |
Global Lifestyle | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | |
Balance, December 31, 2019 | 14.2 |
Acquired allowance as of acquisition date | 0.4 |
Incremental allowance | 2.2 |
Recoveries | (1.4) |
Write-offs | (3.4) |
Foreign currency translation | (0.3) |
Balance, September 30, 2020 | 13 |
Global Housing | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | |
Balance, December 31, 2019 | 0.2 |
Acquired allowance as of acquisition date | 0 |
Incremental allowance | 1.1 |
Recoveries | 0 |
Write-offs | 0 |
Foreign currency translation | 0 |
Balance, September 30, 2020 | 1.8 |
Global Preneed | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | |
Balance, December 31, 2019 | 0.5 |
Acquired allowance as of acquisition date | 0 |
Incremental allowance | 0 |
Recoveries | 0 |
Write-offs | 0 |
Foreign currency translation | 0 |
Balance, September 30, 2020 | 0.5 |
Corporate and Other | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | |
Balance, December 31, 2019 | 0.4 |
Acquired allowance as of acquisition date | 0 |
Incremental allowance | 0.2 |
Recoveries | 0 |
Write-offs | 0 |
Foreign currency translation | 0 |
Balance, September 30, 2020 | 0.6 |
Cumulative Effect, Period of Adoption, Adjustment | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | |
Balance, December 31, 2019 | 1.8 |
Cumulative Effect, Period of Adoption, Adjustment | Global Lifestyle | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | |
Balance, December 31, 2019 | 1.3 |
Cumulative Effect, Period of Adoption, Adjustment | Global Housing | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | |
Balance, December 31, 2019 | 0.5 |
Cumulative Effect, Period of Adoption, Adjustment | Global Preneed | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | |
Balance, December 31, 2019 | 0 |
Cumulative Effect, Period of Adoption, Adjustment | Corporate and Other | |
Premiums and Other Receivables, Net, Allowance For Credit Loss [Roll Forward] | |
Balance, December 31, 2019 | $ 0 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Credit Quality Indicators (Details) - Commercial Portfolio Segment $ in Millions | Sep. 30, 2020USD ($) |
70% and less | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2019 | $ 109.2 |
2018 | 187.9 |
2017 | 146.2 |
2016 | 90.7 |
Prior | 225.6 |
Total | $ 759.6 |
% of Total | 0.976 |
71% to 80% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2019 | $ 7 |
2018 | 0 |
2017 | 0 |
2016 | 6.9 |
Prior | 0 |
Total | $ 13.9 |
% of Total | 0.018 |
81% to 95% | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2019 | $ 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 4.5 |
Total | $ 4.5 |
% of Total | 0.006 |
Total | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2019 | $ 116.2 |
2018 | 187.9 |
2017 | 146.2 |
2016 | 97.6 |
Prior | 230.1 |
Total | $ 778 |
% of Total | 1 |
Greater than 2.0 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2019 | $ 37.3 |
2018 | 71.2 |
2017 | 72.3 |
2016 | 67.2 |
Prior | 106.3 |
Total | $ 354.3 |
% of Total | 0.455 |
1.5 to 2.0 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2019 | $ 41.6 |
2018 | 73.7 |
2017 | 47.7 |
2016 | 20.8 |
Prior | 55 |
Total | $ 238.8 |
% of Total | 0.307 |
1.0 to 1.5 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2019 | $ 37.3 |
2018 | 43 |
2017 | 26.2 |
2016 | 9.6 |
Prior | 64.5 |
Total | $ 180.6 |
% of Total | 0.232 |
Less than 1.0 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2019 | $ 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 4.3 |
Total | $ 4.3 |
% of Total | 0.006 |
Total | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
2019 | $ 116.2 |
2018 | 187.9 |
2017 | 146.2 |
2016 | 97.6 |
Prior | 230.1 |
Total | $ 778 |
% of Total | 1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax refund claim, CARES Act | $ 198.4 | |
Tax benefit | 79.3 | |
Decrease in deferred tax asset | 107.1 | |
Increase in current receivable | 186.4 | |
Accrued interest benefit | 5.2 | |
Refundable employee retention tax credit | $ 3.1 | $ 4.8 |
Segment Information - Financial
Segment Information - Financial Information by Segment (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)reportable_segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | reportable_segment | 4 | ||||
Revenues | |||||
Net earned premiums | $ 2,102.8 | $ 2,015.4 | $ 6,223 | $ 5,952.5 | |
Fees and other income | 245.9 | 295.1 | 934.3 | 959.5 | |
Net investment income | 135.1 | 169.5 | 428.3 | 490 | |
Net realized gains on investments | 16.6 | 14.9 | (54.6) | 61.5 | |
Amortization of deferred gains on disposal of businesses | 2.1 | 4.4 | 8.7 | 16.9 | |
Total revenues | 2,502.5 | 2,499.3 | 7,539.7 | 7,480.4 | |
Benefits, losses and expenses | |||||
Policyholder benefits | 709.6 | 705.2 | 1,908.9 | 2,006.9 | |
Amortization of deferred acquisition costs and value of business acquired | 946.2 | 869.5 | 2,745.7 | 2,462.6 | |
Underwriting, general and administrative expenses | 687.5 | 764.5 | 2,331.8 | 2,388.1 | |
Goodwill impairment | 137.8 | 0 | 137.8 | 0 | |
Iké net losses | 0 | 121.1 | 5.9 | 130.5 | |
Interest expense | 25.5 | 32.2 | 77.7 | 85.2 | |
Loss on extinguishment of debt | 0 | 31.4 | 0 | 31.4 | |
Total benefits, losses and expenses | 2,506.6 | 2,523.9 | 7,207.8 | 7,104.7 | |
(Loss) income before provision for income taxes | (4.1) | (24.6) | 331.9 | 375.7 | |
Provision (benefit) for income taxes | 26.4 | 28.6 | 28.2 | 117.7 | |
Net (loss) income | (30.5) | (53.2) | 303.7 | 258 | |
Less: Net loss (income) attributable to non-controlling interests | 0.3 | (1.6) | (1.1) | (3) | |
Net (loss) income attributable to stockholders | (30.2) | (54.8) | 302.6 | 255 | |
Less: Preferred stock dividends | (4.7) | (4.7) | (14) | (14) | |
Net (loss) income attributable to common stockholders | (34.9) | (59.5) | 288.6 | 241 | |
Segment assets | 43,582.6 | 43,582.6 | $ 44,291.2 | ||
Global Lifestyle | |||||
Revenues | |||||
Net earned premiums | 1,633.2 | 1,525.1 | 4,799 | 4,499.1 | |
Fees and other income | 171.8 | 224.2 | 721.6 | 740.9 | |
Net investment income | 44.6 | 62.1 | 143.5 | 177.5 | |
Net realized gains on investments | 0 | 0 | 0 | 0 | |
Amortization of deferred gains on disposal of businesses | 0 | 0 | 0 | 0 | |
Total revenues | 1,849.6 | 1,811.4 | 5,664.1 | 5,417.5 | |
Benefits, losses and expenses | |||||
Policyholder benefits | 365.4 | 392.1 | 1,044.7 | 1,152.2 | |
Amortization of deferred acquisition costs and value of business acquired | 870.5 | 791.9 | 2,519.7 | 2,238.4 | |
Underwriting, general and administrative expenses | 480.8 | 496.6 | 1,649.4 | 1,622.6 | |
Goodwill impairment | 0 | 0 | |||
Iké net losses | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | 0 | |||
Total benefits, losses and expenses | 1,716.7 | 1,680.6 | 5,213.8 | 5,013.2 | |
(Loss) income before provision for income taxes | 132.9 | 130.8 | 450.3 | 404.3 | |
Provision (benefit) for income taxes | 26.3 | 28.7 | 101 | 92.3 | |
Net (loss) income | 106.6 | 102.1 | 349.3 | 312 | |
Less: Net loss (income) attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net (loss) income attributable to stockholders | 106.6 | 102.1 | 349.3 | 312 | |
Less: Preferred stock dividends | 0 | 0 | 0 | 0 | |
Net (loss) income attributable to common stockholders | 106.6 | 102.1 | 349.3 | 312 | |
Segment assets | 23,563.3 | 23,563.3 | |||
Global Housing | |||||
Revenues | |||||
Net earned premiums | 453.6 | 475.2 | 1,374.6 | 1,407.1 | |
Fees and other income | 37.7 | 35.1 | 106 | 113.3 | |
Net investment income | 16.5 | 22.4 | 54.9 | 66.6 | |
Net realized gains on investments | 0 | 0 | 0 | 0 | |
Amortization of deferred gains on disposal of businesses | 0 | 0 | 0 | 0 | |
Total revenues | 507.8 | 532.7 | 1,535.5 | 1,587 | |
Benefits, losses and expenses | |||||
Policyholder benefits | 272.8 | 245.8 | 651.9 | 652.5 | |
Amortization of deferred acquisition costs and value of business acquired | 56.8 | 47.3 | 169.9 | 158.7 | |
Underwriting, general and administrative expenses | 162.2 | 187.6 | 496.6 | 541.6 | |
Goodwill impairment | 0 | 0 | |||
Iké net losses | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | 0 | |||
Total benefits, losses and expenses | 491.8 | 480.7 | 1,318.4 | 1,352.8 | |
(Loss) income before provision for income taxes | 16 | 52 | 217.1 | 234.2 | |
Provision (benefit) for income taxes | 2.9 | 10.4 | 44.4 | 48.4 | |
Net (loss) income | 13.1 | 41.6 | 172.7 | 185.8 | |
Less: Net loss (income) attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net (loss) income attributable to stockholders | 13.1 | 41.6 | 172.7 | 185.8 | |
Less: Preferred stock dividends | 0 | 0 | 0 | 0 | |
Net (loss) income attributable to common stockholders | 13.1 | 41.6 | 172.7 | 185.8 | |
Segment assets | 4,194.2 | 4,194.2 | |||
Global Preneed | |||||
Revenues | |||||
Net earned premiums | 16 | 15.1 | 49.4 | 46.3 | |
Fees and other income | 35.9 | 35.7 | 106.2 | 103.2 | |
Net investment income | 70.1 | 73 | 210.3 | 212.7 | |
Net realized gains on investments | 0 | 0 | 0 | 0 | |
Amortization of deferred gains on disposal of businesses | 0 | 0 | 0 | 0 | |
Total revenues | 122 | 123.8 | 365.9 | 362.2 | |
Benefits, losses and expenses | |||||
Policyholder benefits | 71.1 | 67.3 | 211.6 | 202.1 | |
Amortization of deferred acquisition costs and value of business acquired | 18.9 | 30.3 | 56.1 | 65.5 | |
Underwriting, general and administrative expenses | 15.3 | 18.2 | 48.4 | 49.8 | |
Goodwill impairment | 0 | 0 | |||
Iké net losses | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | 0 | |||
Total benefits, losses and expenses | 105.3 | 115.8 | 316.1 | 317.4 | |
(Loss) income before provision for income taxes | 16.7 | 8 | 49.8 | 44.8 | |
Provision (benefit) for income taxes | 3.5 | 0.6 | 10.6 | 8.7 | |
Net (loss) income | 13.2 | 7.4 | 39.2 | 36.1 | |
Less: Net loss (income) attributable to non-controlling interests | 0 | 0 | 0 | 0 | |
Net (loss) income attributable to stockholders | 13.2 | 7.4 | 39.2 | 36.1 | |
Less: Preferred stock dividends | 0 | 0 | 0 | 0 | |
Net (loss) income attributable to common stockholders | 13.2 | 7.4 | 39.2 | 36.1 | |
Segment assets | 7,507 | 7,507 | |||
Corporate and Other | |||||
Revenues | |||||
Net earned premiums | 0 | 0 | 0 | 0 | |
Fees and other income | 0.5 | 0.1 | 0.5 | 2.1 | |
Net investment income | 3.9 | 12 | 19.6 | 33.2 | |
Net realized gains on investments | 16.6 | 14.9 | (54.6) | 61.5 | |
Amortization of deferred gains on disposal of businesses | 2.1 | 4.4 | 8.7 | 16.9 | |
Total revenues | 23.1 | 31.4 | (25.8) | 113.7 | |
Benefits, losses and expenses | |||||
Policyholder benefits | 0.3 | 0 | 0.7 | 0.1 | |
Amortization of deferred acquisition costs and value of business acquired | 0 | 0 | 0 | 0 | |
Underwriting, general and administrative expenses | 29.2 | 62.1 | 137.4 | 174.1 | |
Goodwill impairment | 137.8 | 137.8 | |||
Iké net losses | 121.1 | 5.9 | 130.5 | ||
Interest expense | 25.5 | 32.2 | 77.7 | 85.2 | |
Loss on extinguishment of debt | 31.4 | 31.4 | |||
Total benefits, losses and expenses | 192.8 | 246.8 | 359.5 | 421.3 | |
(Loss) income before provision for income taxes | (169.7) | (215.4) | (385.3) | (307.6) | |
Provision (benefit) for income taxes | (6.3) | (11.1) | (127.8) | (31.7) | |
Net (loss) income | (163.4) | (204.3) | (257.5) | (275.9) | |
Less: Net loss (income) attributable to non-controlling interests | 0.3 | (1.6) | (1.1) | (3) | |
Net (loss) income attributable to stockholders | (163.1) | (205.9) | (258.6) | (278.9) | |
Less: Preferred stock dividends | (4.7) | (4.7) | (14) | (14) | |
Net (loss) income attributable to common stockholders | (167.8) | $ (210.6) | (272.6) | $ (292.9) | |
Segment assets | $ 8,318.1 | $ 8,318.1 |
Contract Revenues - Narrative (
Contract Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Global Lifestyle | |||||
Disaggregation of Revenue [Line Items] | |||||
Disaggregated fee revenues | $ 124.6 | $ 188.8 | $ 579.3 | $ 614.6 | |
Global Housing | |||||
Disaggregation of Revenue [Line Items] | |||||
Disaggregated fee revenues | 25.3 | 23.8 | 71.1 | 81.4 | |
Service contracts and sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Receivables from contracts with customers | 210 | 210 | $ 185 | ||
Unearned revenue from contracts with customers | 85.7 | 85.7 | 87.6 | ||
Contract with customer, liability, unearned revenue | 10.3 | $ 14.5 | 37.5 | $ 44.7 | |
Deferred upfront commissions and other costs | $ 14.2 | $ 14.2 | $ 25.8 |
Investments - Amortized Cost, G
Investments - Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and OTTI (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | $ 11,379.3 | $ 11,064.8 |
Fixed maturity securities available for sale, allowances for credit losses | (1.5) | |
Fixed maturity securities, fair value | 13,094.5 | 12,322.4 |
Fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, gross unrealized gains | 1,753.7 | 1,266 |
Fixed maturity securities, gross unrealized losses | (37) | (8.4) |
Fixed maturity securities, fair value | 13,094.5 | 12,322.4 |
Impairment in AOCI | 20.1 | 19.6 |
Fixed maturity securities | U.S. government and government agencies and authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 125.1 | 188.9 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | |
Fixed maturity securities, gross unrealized gains | 6.8 | 5.3 |
Fixed maturity securities, gross unrealized losses | 0 | (0.1) |
Fixed maturity securities, fair value | 131.9 | 194.1 |
Impairment in AOCI | 0 | 0 |
Fixed maturity securities | States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 224.6 | 216.1 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | |
Fixed maturity securities, gross unrealized gains | 34.2 | 26.4 |
Fixed maturity securities, gross unrealized losses | (0.1) | 0 |
Fixed maturity securities, fair value | 258.7 | 242.5 |
Impairment in AOCI | 0 | 0 |
Fixed maturity securities | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 872.2 | 916.9 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | |
Fixed maturity securities, gross unrealized gains | 149.7 | 94.3 |
Fixed maturity securities, gross unrealized losses | (1) | (0.8) |
Fixed maturity securities, fair value | 1,020.9 | 1,010.4 |
Impairment in AOCI | 0 | 0 |
Fixed maturity securities | Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 529.9 | 502.4 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | |
Fixed maturity securities, gross unrealized gains | 8.5 | 3.1 |
Fixed maturity securities, gross unrealized losses | (6) | (2.3) |
Fixed maturity securities, fair value | 532.4 | 503.2 |
Impairment in AOCI | 0 | 0 |
Fixed maturity securities | Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 327.2 | 212.7 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | |
Fixed maturity securities, gross unrealized gains | 16.8 | 10.2 |
Fixed maturity securities, gross unrealized losses | (3.8) | (0.8) |
Fixed maturity securities, fair value | 340.2 | 222.1 |
Impairment in AOCI | 0 | 0 |
Fixed maturity securities | Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 1,084.7 | 1,235.3 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | |
Fixed maturity securities, gross unrealized gains | 95.8 | 52.4 |
Fixed maturity securities, gross unrealized losses | (0.2) | (1.4) |
Fixed maturity securities, fair value | 1,180.3 | 1,286.3 |
Impairment in AOCI | 2.5 | 3.1 |
Fixed maturity securities | U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 6,001 | 5,679.8 |
Fixed maturity securities available for sale, allowances for credit losses | (1.5) | |
Fixed maturity securities, gross unrealized gains | 1,100.3 | 818.9 |
Fixed maturity securities, gross unrealized losses | (23.2) | (2.1) |
Fixed maturity securities, fair value | 7,076.6 | 6,496.6 |
Impairment in AOCI | 17.6 | 16.5 |
Fixed maturity securities | Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 2,214.6 | 2,112.7 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | |
Fixed maturity securities, gross unrealized gains | 341.6 | 255.4 |
Fixed maturity securities, gross unrealized losses | (2.7) | (0.9) |
Fixed maturity securities, fair value | 2,553.5 | 2,367.2 |
Impairment in AOCI | $ 0 | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)stateinvestment | Dec. 31, 2019USD ($)stateinvestment | |
Investment [Line Items] | ||
Investment in securities | $ 13,094.5 | $ 12,322.4 |
Percentage of securities representing gross unrealized losses | 5.00% | 1.00% |
Percentage of gross unrealized losses in a continuous loss position less than twelve months | 88.00% | 49.00% |
Individual securities comprising total gross unrealized losses | investment | 396 | 330 |
States, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Number of individual states exceeding overall investment portfolio exposure | state | 0 | 0 |
Maximum individual state exposure | 0.30% | 0.30% |
Advance refunded or escrowed-to-maturity securities | $ 38.7 | $ 51.9 |
Percentage of revenue securities | 63.00% | 60.00% |
Europe | Corporate Fixed Maturity and Equity Securities | ||
Investment [Line Items] | ||
Investment in securities | $ 881.5 | $ 802.3 |
Unrealized gain (loss) on investments | $ 109.2 | $ 82.4 |
Geographic Concentration Risk | Investments | Canada | Foreign Government Fixed Maturity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 59.00% | 58.00% |
Geographic Concentration Risk | Investments | Brazil | Foreign Government Fixed Maturity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 12.00% | 20.00% |
Geographic Concentration Risk | Investments | Mexico | Foreign Government Fixed Maturity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 8.00% | 6.00% |
Geographic Concentration Risk | Investments | United Kingdom | Corporate Fixed Maturity and Equity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 4.00% | 4.00% |
Geographic Concentration Risk | Investments | Other Countries (more than 3%) | Foreign Government Fixed Maturity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 4.00% | 5.00% |
Financial Services Sector | Investment Sector Concentration Risk | Investments | Europe | Corporate Fixed Maturity and Equity Securities | ||
Investment [Line Items] | ||
Percentage of investments held | 28.00% | |
Fixed maturity securities | ||
Investment [Line Items] | ||
Investment in securities | $ 13,094.5 | $ 12,322.4 |
Fixed maturity securities, gross unrealized losses | 37 | 8.4 |
Fixed maturity securities, gross unrealized gains | 1,753.7 | 1,266 |
Fixed maturity securities | States, municipalities and political subdivisions | ||
Investment [Line Items] | ||
Investment in securities | 258.7 | 242.5 |
Fixed maturity securities, gross unrealized losses | 0.1 | 0 |
Fixed maturity securities, gross unrealized gains | 34.2 | 26.4 |
Fixed maturity securities | Energy Sector | Corporate debt securities | ||
Investment [Line Items] | ||
Investment in securities | 748.3 | 784.4 |
Fixed maturity securities, gross unrealized losses | $ 62.4 | |
Fixed maturity securities, gross unrealized gains | $ 93.1 | |
Internal Investment Grade | Fixed maturity securities | Energy Sector | Corporate debt securities | ||
Investment [Line Items] | ||
Percentage of investments held | 86.00% | 94.00% |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Cost or Amortized Cost | ||
Due in one year or less, cost or amortized cost | $ 463.5 | |
Due after one year through five years, cost or amortized cost | 2,547.5 | |
Due after five years through ten years, cost or amortized cost | 2,439.3 | |
Due after ten years, cost or amortized cost | 3,987.2 | |
Total, cost or amortized cost | 9,437.5 | |
Fixed maturity securities, cost or amortized cost | 11,379.3 | $ 11,064.8 |
Fair Value | ||
Due in one year or less, fair value | 470.4 | |
Due after one year through five years, fair value | 2,717.6 | |
Due after five years through ten years, fair value | 2,744.2 | |
Due after ten years, fair value | 5,109.4 | |
Total, fair value | 11,041.6 | |
Fixed maturity securities, fair value | 13,094.5 | $ 12,322.4 |
Commercial mortgage-backed | ||
Cost or Amortized Cost | ||
Cost or amortized cost | 327.2 | |
Fair Value | ||
Fair value | 340.2 | |
Residential mortgage-backed | ||
Cost or Amortized Cost | ||
Cost or amortized cost | 1,084.7 | |
Fair Value | ||
Fair value | 1,180.3 | |
Asset-backed | ||
Cost or Amortized Cost | ||
Cost or amortized cost | 529.9 | |
Fair Value | ||
Fair value | $ 532.4 |
Investments - Net Realized Gain
Investments - Net Realized Gains (Losses), Including Other-Than-Temporary Impairments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net realized gains (losses) related to sales and other: | ||||
Net realized gains (losses) on investments | $ 18,100,000 | $ 15,100,000 | $ (40,000,000) | $ 62,600,000 |
Net realized losses related to impairments: | ||||
Net realized losses related to impairments | (1,500,000) | (200,000) | (14,600,000) | (1,100,000) |
Total net realized gains (losses) | 16,600,000 | 14,900,000 | (54,600,000) | 61,500,000 |
Gains on equity investment holdings accounted for under alternative measurement | 0 | 0 | 2,200,000 | 10,400,000 |
Credit impairment charges recognized in net realized gains (losses) | 1,500,000 | 1,500,000 | ||
Fixed maturity securities | ||||
Net realized gains (losses) related to sales and other: | ||||
Net realized gains (losses) on investments | 1,800,000 | 7,400,000 | 7,600,000 | 15,100,000 |
Net realized losses related to impairments: | ||||
Net realized losses related to impairments | (1,500,000) | (200,000) | (3,200,000) | (1,100,000) |
Equity securities | ||||
Net realized gains (losses) related to sales and other: | ||||
Net realized gains (losses) on investments | 16,900,000 | 9,400,000 | (9,900,000) | 46,300,000 |
Commercial mortgage loans on real estate | ||||
Net realized gains (losses) related to sales and other: | ||||
Net realized gains (losses) on investments | (2,800,000) | 0 | (4,600,000) | 0 |
Other investments | ||||
Net realized gains (losses) related to sales and other: | ||||
Net realized gains (losses) on investments | 2,200,000 | 300,000 | (800,000) | 5,400,000 |
Net realized losses related to impairments: | ||||
Other investments | 0 | 0 | (11,400,000) | 0 |
Consolidated investment entities | ||||
Net realized gains (losses) related to sales and other: | ||||
Net realized gains (losses) on investments | $ 0 | $ (2,000,000) | $ (32,300,000) | $ (4,200,000) |
Investments - Unrealized Gains
Investments - Unrealized Gains on Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gains (losses) recognized on equity securities | $ 16.9 | $ 9.4 | $ (9.9) | $ 46.3 |
Less: Net realized gains related to sales of equity securities | 0.4 | 0.9 | 1.3 | 0 |
Total net unrealized gains (losses) on equity securities held | $ 16.5 | $ 8.5 | $ (11.2) | $ 46.3 |
Investments - Investment Catego
Investments - Investment Category and Duration of Gross Unrealized Losses on Fixed Maturity Securities and Equity Securities (Details) - Fixed maturity securities - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | $ 652.3 | $ 440.3 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (32.6) | (4.1) |
Fixed maturity securities, 12 Months or More, Fair Value | 105 | 213.9 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (4.4) | (4.3) |
Fixed maturity securities, Total, Fair Value | 757.3 | 654.2 |
Fixed maturity securities, Unrealized Losses | (37) | (8.4) |
U.S. government and government agencies and authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 24.7 | 21.9 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (0.1) | (0.1) |
Fixed maturity securities, 12 Months or More, Fair Value | 0 | 0 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | 0 | 0 |
Fixed maturity securities, Total, Fair Value | 24.7 | 21.9 |
Fixed maturity securities, Unrealized Losses | (0.1) | (0.1) |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 14.9 | 115.7 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (1) | (0.8) |
Fixed maturity securities, 12 Months or More, Fair Value | 0 | 0 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | 0 | 0 |
Fixed maturity securities, Total, Fair Value | 14.9 | 115.7 |
Fixed maturity securities, Unrealized Losses | (1) | (0.8) |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 112.5 | 66.9 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (3.8) | (0.2) |
Fixed maturity securities, 12 Months or More, Fair Value | 83.9 | 105.1 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (2.2) | (2.1) |
Fixed maturity securities, Total, Fair Value | 196.4 | 172 |
Fixed maturity securities, Unrealized Losses | (6) | (2.3) |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 53.2 | 20 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (2.9) | (0.3) |
Fixed maturity securities, 12 Months or More, Fair Value | 3.9 | 4.3 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (0.9) | (0.5) |
Fixed maturity securities, Total, Fair Value | 57.1 | 24.3 |
Fixed maturity securities, Unrealized Losses | (3.8) | (0.8) |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 26.2 | 82.5 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (0.1) | (0.6) |
Fixed maturity securities, 12 Months or More, Fair Value | 1.5 | 82.6 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (0.1) | (0.8) |
Fixed maturity securities, Total, Fair Value | 27.7 | 165.1 |
Fixed maturity securities, Unrealized Losses | (0.2) | (1.4) |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 307.9 | 87.5 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (22) | (1.4) |
Fixed maturity securities, 12 Months or More, Fair Value | 15.7 | 14.4 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | (1.2) | (0.7) |
Fixed maturity securities, Total, Fair Value | 323.6 | 101.9 |
Fixed maturity securities, Unrealized Losses | (23.2) | (2.1) |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, Less than 12 Months, Fair Value | 112.9 | 45.8 |
Fixed maturity securities, Less than 12 Months, Unrealized Losses | (2.7) | (0.7) |
Fixed maturity securities, 12 Months or More, Fair Value | 0 | 7.5 |
Fixed maturity securities, 12 Months or More, Unrealized Losses | 0 | (0.2) |
Fixed maturity securities, Total, Fair Value | 112.9 | 53.3 |
Fixed maturity securities, Unrealized Losses | $ (2.7) | $ (0.9) |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | |||
Total assets | $ 43,582.6 | $ 44,291.2 | |
Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Total assets | [1] | $ 0 | 2,020.1 |
Real estate fund | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Total assets | 88.3 | ||
Subordinated Debt | Subordinated Debt Tranches | Collateralized Loan Obligations | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Total assets | 77.4 | ||
Senior Debt | Senior Debt Tranches | Collateralized Loan Obligations | Consolidated investment entities | |||
Variable Interest Entity [Line Items] | |||
Total assets | $ 21.1 | ||
[1] | The following table presents information on assets and liabilities related to consolidated investment entities as of December 31, 2019. During the third quarter of 2020, the Company sold its collateralized loan obligation asset management platform and outsourced its real estate asset management, which resulted in the deconsolidation of the consolidated investment entities. Refer to Notes 5 and 12 for additional information. December 31, 2019 Assets Cash and cash equivalents $ 32.9 Investments, at fair value 1,957.9 Other receivables 29.3 Total assets $ 2,020.1 Liabilities Collateralized loan obligation notes, at fair value 1,603.1 Other liabilities 83.9 Total liabilities $ 1,687.0 |
Variable Interest Entities - Fa
Variable Interest Entities - Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Consolidated investment entities | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 1,957.9 | |
Recurring | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | $ 17,493.9 | 16,406.8 |
Financial liabilities | 2,039 | 1,978.3 |
Recurring | Consolidated investment entities | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 1,990.8 | |
Financial liabilities | 1,603.1 | |
Recurring | Consolidated investment entities | Collateralized loan obligation notes | ||
Variable Interest Entity [Line Items] | ||
Financial liabilities | 1,603.1 | |
Recurring | Consolidated investment entities | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Investments | 32.9 | |
Recurring | Consolidated investment entities | Corporate debt securities | ||
Variable Interest Entity [Line Items] | ||
Investments | 1,850.7 | |
Recurring | Consolidated investment entities | Real estate fund | ||
Variable Interest Entity [Line Items] | ||
Investments | 107.2 | |
Level 1 | Recurring | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 3,669.9 | 3,311.8 |
Financial liabilities | 1,868.5 | 1,694 |
Level 1 | Recurring | Consolidated investment entities | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 32.9 | |
Financial liabilities | 0 | |
Level 1 | Recurring | Consolidated investment entities | Collateralized loan obligation notes | ||
Variable Interest Entity [Line Items] | ||
Financial liabilities | 0 | |
Level 1 | Recurring | Consolidated investment entities | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Investments | 32.9 | |
Level 1 | Recurring | Consolidated investment entities | Corporate debt securities | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | |
Level 1 | Recurring | Consolidated investment entities | Real estate fund | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | |
Level 2 | Recurring | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 13,737 | 13,031.8 |
Financial liabilities | 170.5 | 284.1 |
Level 2 | Recurring | Consolidated investment entities | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 1,850.7 | |
Financial liabilities | 1,603.1 | |
Level 2 | Recurring | Consolidated investment entities | Collateralized loan obligation notes | ||
Variable Interest Entity [Line Items] | ||
Financial liabilities | 1,603.1 | |
Level 2 | Recurring | Consolidated investment entities | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | |
Level 2 | Recurring | Consolidated investment entities | Corporate debt securities | ||
Variable Interest Entity [Line Items] | ||
Investments | 1,850.7 | |
Level 2 | Recurring | Consolidated investment entities | Real estate fund | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | |
Level 3 | Recurring | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 87 | 63.2 |
Financial liabilities | $ 0 | 0.2 |
Level 3 | Recurring | Consolidated investment entities | ||
Variable Interest Entity [Line Items] | ||
Total financial assets | 107.2 | |
Financial liabilities | 0 | |
Level 3 | Recurring | Consolidated investment entities | Collateralized loan obligation notes | ||
Variable Interest Entity [Line Items] | ||
Financial liabilities | 0 | |
Level 3 | Recurring | Consolidated investment entities | Cash and cash equivalents | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | |
Level 3 | Recurring | Consolidated investment entities | Corporate debt securities | ||
Variable Interest Entity [Line Items] | ||
Investments | 0 | |
Level 3 | Recurring | Consolidated investment entities | Real estate fund | ||
Variable Interest Entity [Line Items] | ||
Investments | $ 107.2 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Value of Level 3 Assets (Details) - Real estate fund - Level 3 - Consolidated investment entities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Real Estate Carrying Amount [Roll Forward] | ||||
Balance, beginning of period | $ 54.5 | $ 138.2 | $ 107.2 | $ 112 |
Purchases | 0 | 0 | 0 | 15.4 |
Sales | 0 | (5.6) | (61) | (5.6) |
Deconsolidation adjustments | (54.5) | 0 | (54.5) | 0 |
Total income included in earnings | 0 | 6.5 | 8.3 | 17.3 |
Balance, end of period | $ 0 | $ 139.1 | 0 | $ 139.1 |
Other investments | ||||
Real Estate Carrying Amount [Roll Forward] | ||||
Deconsolidation adjustments | (45.7) | |||
Non-controlling Interests | ||||
Real Estate Carrying Amount [Roll Forward] | ||||
Deconsolidation adjustments | $ (8.8) |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 17,493.9 | $ 16,406.8 |
Other liabilities | 66.4 | 172 |
Liabilities related to separate accounts | 1,972.6 | 1,806.3 |
Total financial liabilities | 2,039 | 1,978.3 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 3,669.9 | 3,311.8 |
Other liabilities | 66.4 | 70.3 |
Liabilities related to separate accounts | 1,802.1 | 1,623.7 |
Total financial liabilities | 1,868.5 | 1,694 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 13,737 | 13,031.8 |
Other liabilities | 0 | 101.5 |
Liabilities related to separate accounts | 170.5 | 182.6 |
Total financial liabilities | 170.5 | 284.1 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 87 | 63.2 |
Other liabilities | 0 | 0.2 |
Liabilities related to separate accounts | 0 | 0 |
Total financial liabilities | 0 | 0.2 |
U.S. government and government agencies and authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 131.9 | 194.1 |
U.S. government and government agencies and authorities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
U.S. government and government agencies and authorities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 131.9 | 194.1 |
U.S. government and government agencies and authorities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 258.7 | 242.5 |
States, municipalities and political subdivisions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
States, municipalities and political subdivisions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 258.7 | 242.5 |
States, municipalities and political subdivisions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,020.9 | 1,010.4 |
Foreign governments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0.6 | 0.3 |
Foreign governments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,020 | 1,010.1 |
Foreign governments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0.3 | 0 |
Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 532.4 | 503.2 |
Asset-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Asset-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 531.6 | 503.2 |
Asset-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0.8 | 0 |
Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 340.2 | 222.1 |
Commercial mortgage-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Commercial mortgage-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 320.4 | 198.6 |
Commercial mortgage-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 19.8 | 23.5 |
Residential mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,180.3 | 1,286.3 |
Residential mortgage-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Residential mortgage-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,177.6 | 1,286.3 |
Residential mortgage-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 2.7 | 0 |
U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 7,076.6 | 6,496.6 |
U.S. corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
U.S. corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 7,050.1 | 6,494.8 |
U.S. corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 26.5 | 1.8 |
Foreign corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 2,553.5 | 2,367.2 |
Foreign corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Foreign corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 2,520 | 2,331.5 |
Foreign corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 33.5 | 35.7 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 42.6 | 45.5 |
Mutual funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 42.6 | 45.5 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Mutual funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 20.4 | 23.5 |
Common Stock | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 18.6 | 22.8 |
Common Stock | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0.7 | 0.7 |
Common Stock | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1.1 | 0 |
Non-redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 321.4 | 319.5 |
Non-redeemable preferred stocks | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Non-redeemable preferred stocks | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 319.3 | 317.3 |
Non-redeemable preferred stocks | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 2.1 | 2.2 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 217.3 | 367.5 |
Short-term investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 174.8 | 271.4 |
Short-term investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 42.5 | 96.1 |
Short-term investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 231.7 | 234.6 |
Other investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 66.4 | 70.3 |
Other investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 165.3 | 164.3 |
Other investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,592.4 | 1,287.5 |
Cash equivalents | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,564.8 | 1,277.8 |
Cash equivalents | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 27.6 | 9.7 |
Cash equivalents | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1 | |
Other assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | |
Other assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0.8 | |
Other assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0.2 | |
Assets held in separate accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,972.6 | 1,806.3 |
Assets held in separate accounts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,802.1 | 1,623.7 |
Assets held in separate accounts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 170.5 | 182.6 |
Assets held in separate accounts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 0 | $ 0 |
Fair Value Disclosures - Carryi
Fair Value Disclosures - Carrying Value and Fair Value of the Financial Instruments that are Not recognized or are Not Carried at Fair Value (Details) - Recurring - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | $ 17,493.9 | $ 16,406.8 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | 3,669.9 | 3,311.8 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | 13,737 | 13,031.8 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | 87 | 63.2 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 771.1 | 815 |
Other investments | 165.4 | 140 |
Other assets | 24.8 | 28.9 |
Total financial assets | 961.3 | 983.9 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 527.1 | 551.6 |
Funds withheld under reinsurance | 361.2 | 319.4 |
Debt | 2,008.6 | 2,006.9 |
Total financial liabilities | 2,896.9 | 2,877.9 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 827 | 843.8 |
Other investments | 165.4 | 140 |
Other assets | 24.8 | 28.9 |
Total financial assets | 1,017.2 | 1,012.7 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 585.3 | 588.4 |
Funds withheld under reinsurance | 361.2 | 319.4 |
Debt | 2,204.3 | 2,190.6 |
Total financial liabilities | 3,150.8 | 3,098.4 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 0 | 0 |
Other investments | 30.3 | 30.7 |
Other assets | 0 | 0 |
Total financial assets | 30.3 | 30.7 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 0 | 0 |
Funds withheld under reinsurance | 361.2 | 319.4 |
Debt | 0 | 0 |
Total financial liabilities | 361.2 | 319.4 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 0 | 0 |
Other investments | 0 | 0 |
Other assets | 0 | 0 |
Total financial assets | 0 | 0 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 0 | 0 |
Funds withheld under reinsurance | 0 | 0 |
Debt | 2,204.3 | 2,190.6 |
Total financial liabilities | 2,204.3 | 2,190.6 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 827 | 843.8 |
Other investments | 135.1 | 109.3 |
Other assets | 24.8 | 28.9 |
Total financial assets | 986.9 | 982 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 585.3 | 588.4 |
Funds withheld under reinsurance | 0 | 0 |
Debt | 0 | 0 |
Total financial liabilities | $ 585.3 | $ 588.4 |
Reserves - Roll Forward of Clai
Reserves - Roll Forward of Claims and Benefits Payable (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Claims and benefits payable | $ 2,758.2 | $ 2,871.1 | $ 2,758.2 | $ 2,871.1 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Claims and benefits payable, at beginning of period | 2,687.7 | 2,813.7 | ||
Less: Reinsurance ceded and other | (1,900) | (2,053.7) | ||
Net claims and benefits payable, at beginning of period | 787.7 | 760 | ||
Incurred losses and loss adjustment expenses related to: | ||||
Current year | 1,951.4 | 2,034.2 | ||
Prior years | (43) | (27.3) | ||
Total incurred losses and loss adjustment expenses | 1,908.4 | 2,006.9 | ||
Paid losses and loss adjustment expenses related to: | ||||
Current year | 1,368.4 | 1,468.4 | ||
Prior years | 463 | 470.4 | ||
Total paid losses and loss adjustment expenses | 1,831.4 | 1,938.8 | ||
Net claims and benefits payable, at end of period | 864.7 | 828.1 | ||
Plus: Reinsurance ceded and other | 1,893.5 | 2,043 | ||
Claims and benefits payable, at end of period | $ 2,758.2 | $ 2,871.1 | ||
Ceded to U.S. Government | Not Rated | ||||
Paid losses and loss adjustment expenses related to: | ||||
Reinsurance recoverables | $ 118.4 | $ 191.7 |
Reserves - Narrative (Details)
Reserves - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | $ 43 | $ 27.3 |
Global Lifestyle | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | 34 | 28.5 |
Global Housing | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | 2.9 | (7.5) |
Global Housing | Hurricane | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | (4.5) | |
Health | Global Preneed and Other | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | $ 6.1 | $ 6.3 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Carrying Value | $ 2,008,600,000 | $ 2,006,900,000 |
Senior Notes | Floating Rate Senior Notes due March 2021 | ||
Debt Instrument [Line Items] | ||
Principal Amount | 50,000,000 | 50,000,000 |
Carrying Value | $ 50,000,000 | 49,900,000 |
Senior Notes | Floating Rate Senior Notes due March 2021 | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Interest rate, basis spread | 1.25% | |
Senior Notes | 4.00% Senior Notes due March 2023 | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 350,000,000 | 350,000,000 |
Carrying Value | $ 348,800,000 | 348,500,000 |
Interest rate | 4.00% | |
Senior Notes | 4.20% Senior Notes due September 2023 | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 300,000,000 | 300,000,000 |
Carrying Value | $ 298,200,000 | 297,800,000 |
Interest rate | 4.20% | |
Senior Notes | 4.90% Senior Notes due March 2028 | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 300,000,000 | 300,000,000 |
Carrying Value | $ 297,100,000 | 296,800,000 |
Interest rate | 4.90% | |
Senior Notes | 3.70% Senior Notes due February 2030 | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 350,000,000 | 350,000,000 |
Carrying Value | $ 347,000,000 | 346,800,000 |
Interest rate | 3.70% | |
Senior Notes | 6.75% Senior Notes due February 2034 | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 275,000,000 | 275,000,000 |
Carrying Value | $ 272,200,000 | 272,100,000 |
Interest rate | 6.75% | |
Subordinated notes | 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 | ||
Debt Instrument [Line Items] | ||
Principal Amount | $ 400,000,000 | 400,000,000 |
Carrying Value | $ 395,300,000 | $ 395,000,000 |
Interest rate | 7.00% | |
Subordinated notes | 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Interest rate, basis spread | 4.135% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Jul. 29, 2020 | Jul. 29, 2020 | Mar. 31, 2018 | Sep. 30, 2020 | Jun. 26, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 27, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||||||
Borrowed from credit facility | $ 2,008,600,000 | $ 2,008,600,000 | $ 2,006,900,000 | |||||||
Payments on secured revolving credit facility | 200,000,000 | $ 0 | ||||||||
Interest expense | 25,500,000 | $ 32,200,000 | 77,700,000 | 85,200,000 | ||||||
Amortization of gain on swaptions | 700,000 | $ 600,000 | 2,200,000 | $ 2,100,000 | ||||||
Senior Notes | 4.20% Senior Notes due September 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowed from credit facility | $ 298,200,000 | $ 298,200,000 | 297,800,000 | |||||||
Interest rate | 4.20% | 4.20% | ||||||||
Senior Notes | 4.90% Senior Notes due March 2028 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowed from credit facility | $ 297,100,000 | $ 297,100,000 | $ 296,800,000 | |||||||
Interest rate | 4.90% | 4.90% | ||||||||
Letter of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit | $ 4,500,000 | $ 4,500,000 | ||||||||
Revolving Credit Facility | Revolving Credit Facility 2017 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowed from credit facility | 0 | 0 | $ 200,000,000 | |||||||
Payments on secured revolving credit facility | $ 200,000,000 | |||||||||
Interest expense | 1,700,000 | |||||||||
Revolving Credit Facility | JPMorgan Chase Bank NA And Bank of America NA | Revolving Credit Facility 2017 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility borrowing capacity | 450,000,000 | 450,000,000 | ||||||||
Senior revolving credit facility | 575,000,000 | 575,000,000 | ||||||||
Sublimit for letters of credit issued | 50,000,000 | 50,000,000 | ||||||||
Line of credit facility, remaining borrowing capacity | $ 445,500,000 | 445,500,000 | ||||||||
Revolving Credit Facility | JPMorgan Chase Bank NA And Bank of America NA | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility 2017 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 1.50% | 1.50% | ||||||||
Derivative | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred gain from effective cash flow hedges | $ 26,700,000 | |||||||||
Interest Rate Derivatives | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred gain from effective cash flow hedges | $ 19,300,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 5,652.8 | |||
Change in accumulated other comprehensive income (loss) before reclassifications | $ 91.3 | $ 78.2 | 234.5 | $ 566.1 |
Amounts reclassified from accumulated other comprehensive income (loss) | (2) | (1.7) | 12.2 | (5.5) |
Total other comprehensive income | 89.3 | 76.5 | 246.7 | 560.6 |
Ending balance | 5,936.4 | 5,936.4 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 568.9 | 328.7 | 411.5 | (155.4) |
Total other comprehensive income | 89.3 | 76.5 | 246.7 | 560.6 |
Ending balance | 658.2 | 405.2 | 658.2 | 405.2 |
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (379) | (366.6) | (358.9) | (375.6) |
Change in accumulated other comprehensive income (loss) before reclassifications | 35.3 | (23.6) | (4.5) | (14.6) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 19.7 | 0 |
Total other comprehensive income | 35.3 | (23.6) | 15.2 | (14.6) |
Ending balance | (343.7) | (390.2) | (343.7) | (390.2) |
Net unrealized gains on securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 989.1 | 778.4 | 856.5 | 301 |
Change in accumulated other comprehensive income (loss) before reclassifications | 53.8 | 101 | 189.1 | 581.4 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.3 | (3.6) | (2.4) | (6.6) |
Total other comprehensive income | 54.1 | 97.4 | 186.7 | 574.8 |
Ending balance | 1,043.2 | 875.8 | 1,043.2 | 875.8 |
Net unrealized gains on derivative transactions | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 15.9 | 15.2 | 17.1 | 18.4 |
Change in accumulated other comprehensive income (loss) before reclassifications | 0 | 0.5 | 0 | (1.5) |
Amounts reclassified from accumulated other comprehensive income (loss) | (0.6) | 2.2 | (1.8) | 1 |
Total other comprehensive income | (0.6) | 2.7 | (1.8) | (0.5) |
Ending balance | 15.3 | 17.9 | 15.3 | 17.9 |
Credit related impairment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 0 | 0 | 0 |
Change in accumulated other comprehensive income (loss) before reclassifications | 1.2 | 0 | 1.2 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive income | 1.2 | 0 | 1.2 | 0 |
Ending balance | 1.2 | 0 | 1.2 | 0 |
Non-credit related impairment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 14.3 | 15.6 | 15.5 | 15.1 |
Change in accumulated other comprehensive income (loss) before reclassifications | 1.5 | 0.2 | 0.3 | 0.7 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive income | 1.5 | 0.2 | 0.3 | 0.7 |
Ending balance | 15.8 | 15.8 | 15.8 | 15.8 |
Unamortized net (losses) on Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (71.4) | (113.9) | (118.7) | (114.3) |
Change in accumulated other comprehensive income (loss) before reclassifications | (0.5) | 0.1 | 48.4 | 0.1 |
Amounts reclassified from accumulated other comprehensive income (loss) | (1.7) | (0.3) | (3.3) | 0.1 |
Total other comprehensive income | (2.2) | (0.2) | 45.1 | 0.2 |
Ending balance | $ (73.6) | $ (114.1) | $ (73.6) | $ (114.1) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | $ 26.4 | $ 28.6 | $ 28.2 | $ 117.7 |
Net of tax | 30.5 | 53.2 | (303.7) | (258) |
Interest expense | 25.5 | 32.2 | 77.7 | 85.2 |
Iké net losses | 0 | 121.1 | 5.9 | 130.5 |
Total reclassifications for the period, net of tax | (2) | (1.7) | 12.2 | (5.5) |
Foreign currency translation adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | 0 | 0 | 19.7 | 0 |
Net unrealized losses (gains) on investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | 0.3 | (3.6) | (2.4) | (6.6) |
Net unrealized (gains) losses on derivative transactions | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | (0.6) | 2.2 | (1.8) | 1 |
Unamortized net (losses) on Pension Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | (1.7) | (0.3) | (3.3) | 0.1 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | (2) | (1.7) | 12.2 | (5.5) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | 0 | 0 | ||
Net of tax | 19.7 | 0 | ||
Iké net losses | 19.7 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized losses (gains) on investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net unrealized losses (gains) on investments | 0.3 | (4.5) | (3.1) | (8.3) |
Provision for income taxes | 0 | 0.9 | 0.7 | 1.7 |
Net of tax | 0.3 | (3.6) | (2.4) | (6.6) |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized (gains) losses on derivative transactions | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | 0.1 | 0.2 | 0.4 | 0.5 |
Net of tax | (0.6) | 2.2 | (1.8) | 1 |
Interest expense | (0.7) | 2 | (2.2) | 0.5 |
Reclassification out of Accumulated Other Comprehensive Income | Unamortized net (losses) on Pension Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (2.1) | (0.4) | (4.1) | 0.2 |
Provision for income taxes | 0.4 | 0.1 | 0.8 | (0.1) |
Total reclassifications for the period, net of tax | (1.7) | (0.3) | (3.3) | 0.1 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of net loss (gain) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 1.3 | (0.4) | 3.8 | 0.2 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service credit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | $ (3.4) | $ 0 | $ (7.9) | $ 0 |
Stock Based Compensation - Long
Stock Based Compensation - Long-Term Equity Incentive Plans (Details) | May 31, 2019shares |
Long-Term Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Company's common stock authorized to employees (in shares) (up to) | 1,588,797 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Units (Details) - Long-Term Equity Incentive Plan - Restricted Stock Units - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 7.2 | $ 7.9 | $ 20.8 | $ 22.3 |
Income tax benefit | (1.4) | (1.4) | (3.8) | (4.1) |
Compensation expense, net of tax | $ 5.8 | $ 6.5 | $ 17 | $ 18.2 |
RSUs granted (in shares) | 32,844 | 29,195 | 294,794 | 254,591 |
Weighted average grant date fair value per unit (in dollars per share) | $ 101.81 | $ 108.99 | $ 92.2 | $ 98.86 |
Total fair value of vested RSUs | $ 4.8 | $ 6.4 | $ 29.2 | $ 33.2 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized [Abstract] | ||||
Unrecognized compensation cost | $ 24.4 | $ 24.4 | ||
Unrecognized compensation cost expected to be recognized over a weighted-average period (in years) | 1 year 1 month 6 days |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Stock Units (Details) - Long-Term Equity Incentive Plan - Performance Share Units - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 7.6 | $ 6.7 | $ 19.7 | $ 17.5 |
Income tax benefit | (0.8) | (1) | (2.1) | (2.5) |
Compensation expense, net of tax | $ 6.8 | $ 5.7 | $ 17.6 | $ 15 |
PSUs granted (in shares) | 0 | 0 | 302,274 | 246,219 |
Weighted average grant date fair value per unit (in dollars per share) | $ 0 | $ 0 | $ 87.36 | $ 105.23 |
Total fair value of vested PSUs | $ 0.3 | $ 1.9 | $ 24.7 | $ 19.6 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized [Abstract] | ||||
Unrecognized compensation cost | $ 27.8 | $ 27.8 | ||
Unrecognized compensation cost expected to be recognized over a weighted-average period (in years) | 1 year 1 month 6 days |
Equity Transactions - Narrative
Equity Transactions - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||||||
Share repurchases (in shares) | 1,312,443 | 1,582,448 | ||||
Acquisition of common stock | $ 153.2 | $ 166.1 | ||||
Amount remaining under total repurchase authorization | $ 333.1 | 333.1 | ||||
Preferred stock dividends | $ 4.7 | $ 4.7 | $ 14 | $ 14 | ||
MCPS | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 2,875,000 | 2,875,000 | 2,875,000 | 2,875,000 | ||
Public Offering price (in dollars per share) | $ 100 | |||||
Net proceeds from sale of stock | $ 276.4 | |||||
Share interest rate | 6.50% | 6.50% | ||||
Liquidation price (in dollars per share) | $ 100 | $ 100 | ||||
Minimum | MCPS | ||||||
Class of Stock [Line Items] | ||||||
Stock conversion ratio (in shares) | 0.9391 | |||||
Maximum | MCPS | ||||||
Class of Stock [Line Items] | ||||||
Stock conversion ratio (in shares) | 1.1269 |
Earnings Per Common Share - Net
Earnings Per Common Share - Net Income, Weighted Average Common Shares Used in Calculating Basic Earnings Per Common Share and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator | ||||
Net (loss) income attributable to stockholders | $ (30.2) | $ (54.8) | $ 302.6 | $ 255 |
Less: Preferred stock dividends | (4.7) | (4.7) | (14) | (14) |
Net (loss) income attributable to common stockholders | (34.9) | (59.5) | 288.6 | 241 |
Less: Common stock dividends paid | (37.5) | (37.3) | (115.1) | (113) |
Undistributed earnings | $ (72.4) | $ (96.8) | $ 173.5 | $ 128 |
Denominator | ||||
Weighted average common shares outstanding used in basic earnings per common share (in shares) | 60,190,103 | 61,804,492 | 60,384,817 | 62,204,242 |
Incremental common shares from: | ||||
Weighted average common shares used in diluted earnings per common share calculations (in shares) | 60,190,103 | 61,804,492 | 60,640,945 | 62,460,245 |
Earnings per common share - Basic | ||||
Distributed earnings (in dollars per share) | $ 0.62 | $ 0.60 | $ 1.91 | $ 1.82 |
Undistributed (losses) earnings (in dollars per share) | (1.20) | (1.56) | 2.87 | 2.06 |
Net (loss) income attributable to common stockholders (in dollars per share) | (0.58) | (0.96) | 4.78 | 3.88 |
Earnings per common share - Diluted | ||||
Distributed earnings (in dollars per share) | 0.62 | 0.60 | 1.90 | 1.81 |
Undistributed (losses) earning (in dollars per share) | (1.20) | (1.56) | 2.86 | 2.05 |
Net (loss) income attributable to common stockholders (in dollars per share) | $ (0.58) | $ (0.96) | $ 4.76 | $ 3.86 |
PSUs | ||||
Incremental common shares from: | ||||
Incremental common shares (in shares) | 0 | 0 | 253,982 | 256,003 |
ESPP | ||||
Incremental common shares from: | ||||
Incremental common shares (in shares) | 0 | 0 | 2,146 | 0 |
MCPS | ||||
Incremental common shares from: | ||||
Mandatory convertible preferred stock (in shares) | 0 | 0 | 0 | 0 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Outstanding anti-dilutive shares excluded from computation of diluted EPS (in shares) | 233,039 | 261,332 | 0 | 118 |
ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Outstanding anti-dilutive shares excluded from computation of diluted EPS (in shares) | 2,580 | 2,631 | ||
MCPS | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Outstanding anti-dilutive shares excluded from computation of diluted EPS (in shares) | 2,699,913 | 2,693,588 | 2,699,913 | 2,739,875 |
Retirement and Other Employee_3
Retirement and Other Employee Benefits - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Qualified pension benefits plan funded status | $ 54,100,000 | $ 66,400,000 | |
Funded status percentage | 107.00% | 109.00% | |
Cash contribution to qualified pension benefits plan | $ 0 | ||
Cash expected contribution to plan over remainder of fiscal year | 0 | ||
Retirement Health Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate (as a percentage) | 1.55% | ||
Reduction in obligations | $ 65,600,000 |
Retirement and Other Employee_4
Retirement and Other Employee Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension Plan | Qualified Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 5.1 | $ 6.2 | $ 15.3 | $ 19.3 |
Expected return on plan assets | (7.7) | (8.7) | (23.1) | (26.7) |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | 0.7 | 0 | 2.1 | 0 |
Net periodic benefit cost | (1.9) | (2.5) | (5.7) | (7.4) |
Pension Plan | Unfunded Nonqualified Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 0.5 | 0.8 | 1.5 | 2.2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | 0.6 | 0.2 | 1.7 | 0.8 |
Net periodic benefit cost | 1.1 | 1 | 3.2 | 3 |
Retirement Health Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 0.1 | 0.6 | 0.6 | 2.4 |
Expected return on plan assets | (0.8) | (0.5) | (1.3) | (1.4) |
Amortization of prior service credit | (3.4) | 0 | (7.9) | 0 |
Amortization of net loss (gain) | 0 | (0.6) | 0 | (0.6) |
Net periodic benefit cost | $ (4.1) | $ (0.5) | $ (8.6) | $ 0.4 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 7.6 | $ 12.1 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 1 Months Ended |
Oct. 31, 2020USD ($) | |
Subsequent Event | HYLA Mobile | |
Subsequent Event [Line Items] | |
Acquisition consideration | $ 325 |