Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 28, 2022 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-31978 | |
Entity Registrant Name | Assurant, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 39-1126612 | |
Entity Address, Address Line One | 55 Broadway | |
Entity Address, Address Line Two | Suite 2901 | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10006 | |
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 | 52,831,429 | |
Entity Central Index Key | 0001267238 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock, $0.01 Par Value | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | AIZ | |
Security Exchange Name | NYSE | |
5.25% Subordinated Notes due 2061 | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 5.25% Subordinated Notes due 2061 | |
Trading Symbol | AIZN | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments: | ||
Fixed maturity securities available for sale, at fair value (amortized cost - $6,863.6 and $6,903.9 at September 30, 2022 and December 31, 2021, respectively) | $ 6,137.9 | $ 7,215.3 |
Equity securities at fair value | 302.6 | 445.7 |
Commercial mortgage loans on real estate, at amortized cost (net of allowances for credit losses of $1.1 at September 30, 2022 and December 31, 2021) | 304.4 | 256.5 |
Short-term investments | 266.8 | 247.8 |
Other investments | 504.4 | 506.3 |
Total investments | 7,516.1 | 8,671.6 |
Cash and cash equivalents | 1,429.8 | 2,040.8 |
Premiums and accounts receivable (net of allowances for credit losses of $11.5 and $9.4 at September 30, 2022 and December 31, 2021, respectively) | 2,288.9 | 1,942.5 |
Reinsurance recoverables (net of allowances for credit losses of $5.7 and $5.0 at September 30, 2022 and December 31, 2021, respectively) | 7,561.8 | 6,181.2 |
Accrued investment income | 85.1 | 62.1 |
Deferred acquisition costs | 9,577.8 | 8,811 |
Property and equipment, net | 617.6 | 561.4 |
Goodwill | 2,547.4 | 2,571.6 |
Value of business acquired | 323.5 | 583.4 |
Other intangible assets, net | 631 | 719.2 |
Other assets (net of allowances for credit losses of $2.0 and $2.5 at September 30, 2022 and December 31, 2021, respectively) | 666.7 | 698.9 |
Assets held for sale (Note 4) | 0 | 1,076.9 |
Total assets | 33,245.7 | 33,920.6 |
Liabilities | ||
Future policy benefits and expenses | 406.7 | 413.2 |
Unearned premiums | 19,554.9 | 18,623.7 |
Claims and benefits payable | 3,022.4 | 1,604.8 |
Commissions payable | 670.9 | 692.7 |
Reinsurance balances payable | 520.9 | 446.2 |
Funds held under reinsurance | 374.5 | 364.2 |
Accounts payable and other liabilities | 2,467.2 | 3,044.4 |
Debt | 2,129.3 | 2,202.5 |
Liabilities held for sale (Note 4) | 0 | 1,064.8 |
Total liabilities | 29,146.8 | 28,456.5 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity | ||
Common stock, par value $0.01 per share, 800,000,000 shares authorized, 55,187,797 and 58,050,202 shares issued and 52,891,708 and 55,754,113 shares outstanding at September 30, 2022 and December 31, 2021, respectively | 0.6 | 0.7 |
Additional paid-in capital | 1,627.1 | 1,695 |
Retained earnings | 3,678.9 | 4,041.2 |
Accumulated other comprehensive loss | (1,084.9) | (150) |
Treasury stock, at cost; 2,296,089 shares at September 30, 2022 and December 31, 2021 | (122.8) | (122.8) |
Total equity | 4,098.9 | 5,464.1 |
Total liabilities and equity | $ 33,245.7 | $ 33,920.6 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Fixed maturity securities available for sale, amortized cost | $ 6,863.6 | $ 6,903.9 |
Commercial mortgage loans on real estate, allowances for expected credit losses | 1.1 | 1.1 |
Premiums and accounts receivable, allowances for expected credit losses | 11.5 | 9.4 |
Reinsurance recoverables, allowances for expected credit losses | 5.7 | 5 |
Other assets, allowances for credit losses | $ 2 | $ 2.5 |
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) | 55,187,797 | 58,050,202 |
Common stock, shares outstanding (in shares) | 52,891,708 | 55,754,113 |
Treasury stock, at cost (in shares) | 2,296,089 | 2,296,089 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Net earned premiums | $ 2,197.1 | $ 2,140.1 | $ 6,502.4 | $ 6,396.3 |
Fees and other income | 294.6 | 309.6 | 942.2 | 858 |
Net investment income | 83.5 | 76 | 261.8 | 235.2 |
Net realized (losses) gains on investments (including $—, $—, $(2.1) and $0.2 of impairment-related (losses) gains for the three and nine months ended September 30, 2022 and 2021, respectively) and fair value changes to equity securities | (27.4) | 112.1 | (166.2) | 123.2 |
Total revenues | 2,547.8 | 2,637.8 | 7,540.2 | 7,612.7 |
Benefits, losses and expenses | ||||
Policyholder benefits | 670.5 | 617.4 | 1,760.5 | 1,684.2 |
Underwriting, selling, general and administrative expenses | 1,842.5 | 1,784 | 5,444.8 | 5,210.4 |
Interest expense | 26.3 | 27.5 | 80.4 | 84.7 |
Loss on extinguishment of debt | 0 | 20.7 | 0.9 | 20.7 |
Total benefits, losses and expenses | 2,539.3 | 2,449.6 | 7,286.6 | 7,000 |
Income from continuing operations before income tax expense | 8.5 | 188.2 | 253.6 | 612.7 |
Income tax expense | 1.2 | 37.2 | 45.1 | 133.8 |
Net income from continuing operations attributable to stockholders | 7.3 | 151 | 208.5 | 478.9 |
Net income from discontinued operations (Note 4) | 0 | 728.8 | 0 | 762 |
Net income attributable to stockholders | 7.3 | 879.8 | 208.5 | 1,240.9 |
Less: Preferred stock dividends | 0 | 0 | 0 | (4.7) |
Net income (loss) attributable to common stockholders, basic | 7.3 | 879.8 | 208.5 | 1,236.2 |
Net income (loss) attributable to common stockholders, diluted | $ 7.3 | $ 879.8 | $ 208.5 | $ 1,236.2 |
Basic | ||||
Net income from continuing operations (in dollars per share) | $ 0.14 | $ 2.56 | $ 3.81 | $ 7.94 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 12.32 | 0 | 12.74 |
Net income (loss) attributable to common stockholders (in dollars per share) | 0.14 | 14.88 | 3.81 | 20.68 |
Diluted | ||||
Net income from continuing operations (in dollars per share) | 0.14 | 2.54 | 3.78 | 7.87 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 12.25 | 0 | 12.52 |
Net income (loss) attributable to common stockholders (in dollars per share) | $ 0.14 | $ 14.79 | $ 3.78 | $ 20.39 |
Share Data | ||||
Weighted average common shares outstanding used in basic per common share calculations (in shares) | 53,717,373 | 59,126,313 | 54,693,799 | 59,769,690 |
Plus: Dilutive securities (in shares) | 349,232 | 353,151 | 431,051 | 1,085,631 |
Weighted average common shares outstanding used in diluted per common share calculations (in shares) | 54,066,605 | 59,479,464 | 55,124,850 | 60,855,321 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Impairment gain (losses) | $ 0 | $ 0 | $ (2.1) | $ 0.2 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 7.3 | $ 879.8 | $ 208.5 | $ 1,240.9 |
Other comprehensive (loss) income: | ||||
Change in unrealized gains on securities, net of taxes of $50.5,$184.4, $213.3 and $220.8 for the three and nine months ended September 30, 2022 and 2021, respectively | (209.3) | (663.1) | (836) | (786.2) |
Change in unrealized gains on derivative transactions, net of taxes of $0.1, $0.2, $0.5 and $0.6 for each of the three and nine months ended September 30, 2022 and 2021, respectively | (0.6) | (0.6) | (1.9) | (1.8) |
Change in foreign currency translation, net of taxes of $0.1, $1.1, $(2.5) and $1.3 for the three and nine months ended September 30, 2022 and 2021, respectively | (51.4) | (23.7) | (92) | (2.9) |
Change in pension and postretirement unrecognized net periodic benefit cost, net of taxes of $0.4, $0.2, $1.3 and $0.9 for the three and nine months ended September 30, 2022 and 2021, respectively | (1.4) | (0.7) | (5) | (3) |
Total other comprehensive loss | (262.7) | (688.1) | (934.9) | (793.9) |
Total comprehensive (loss) income | (255.4) | 191.7 | (726.4) | 447 |
Total comprehensive (loss) income attributable to stockholders | $ (255.4) | $ 191.7 | $ (726.4) | $ 447 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in unrealized gains on securities, tax | $ 50.5 | $ 213.3 | $ 184.4 | $ 220.8 |
Change in unrealized gains on derivative transactions, tax | 0.1 | 0.5 | 0.2 | 0.6 |
Change in foreign currency transaction, tax | 0.1 | (2.5) | 1.1 | 1.3 |
Change in pension and postretirement unrecognized net periodic benefit cost, tax | $ 0.4 | $ 1.3 | $ 0.2 | $ 0.9 |
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 |
Beginning balance at Dec. 31, 2020 | $ 5,939.6 | $ 2.9 | $ 0.6 | $ 1,956.8 | $ 3,533.5 | $ 709.8 | $ (267.4) | $ 3.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock plan exercises | 11.8 | 11.8 | ||||||
Stock plan compensation expense | 48.6 | 48.6 | ||||||
Common stock dividends | (118.5) | (118.5) | ||||||
Acquisition of common stock | (581.6) | (127.2) | (454.4) | 0 | ||||
Net income | 1,240.9 | 1,240.9 | 0 | |||||
Acquisition of non-controlling interests | (16.9) | (16.9) | 0 | |||||
Preferred stock conversion | (2.9) | 0.1 | (141.8) | 144.6 | ||||
Preferred stock dividends | (4.7) | (4.7) | ||||||
Change in equity of non-controlling interests | (4) | (0.6) | (3.4) | |||||
Other comprehensive loss | (793.9) | (793.9) | ||||||
Ending balance at Sep. 30, 2021 | 5,721.3 | 0 | 0.7 | 1,731.3 | 4,196.2 | (84.1) | (122.8) | 0 |
Beginning balance at Jun. 30, 2021 | 5,887.9 | 0.7 | 1,786.2 | 3,619.8 | 604 | (122.8) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock plan exercises | 6.4 | 6.4 | ||||||
Stock plan compensation expense | 18.2 | 18.2 | ||||||
Common stock dividends | (38.5) | (38.5) | ||||||
Acquisition of common stock | (327.5) | (62.6) | (264.9) | |||||
Net income | 879.8 | 879.8 | ||||||
Acquisition of non-controlling interests | (16.9) | (16.9) | ||||||
Other comprehensive loss | (688.1) | (688.1) | ||||||
Ending balance at Sep. 30, 2021 | 5,721.3 | $ 0 | 0.7 | 1,731.3 | 4,196.2 | (84.1) | (122.8) | $ 0 |
Beginning balance at Dec. 31, 2021 | 5,464.1 | 0.7 | 1,695 | 4,041.2 | (150) | (122.8) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock plan exercises | 13.6 | 13.6 | ||||||
Stock plan compensation expense | 47.2 | 47.2 | ||||||
Common stock dividends | (112.7) | (112.7) | ||||||
Acquisition of common stock | (586.9) | (0.1) | (128.7) | (458.1) | ||||
Net income | 208.5 | 208.5 | ||||||
Other comprehensive loss | (934.9) | (934.9) | ||||||
Ending balance at Sep. 30, 2022 | 4,098.9 | 0.6 | 1,627.1 | 3,678.9 | (1,084.9) | (122.8) | ||
Beginning balance at Jun. 30, 2022 | 4,459.7 | 0.6 | 1,629.9 | 3,774.2 | (822.2) | (122.8) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock plan exercises | 5.8 | 5.8 | ||||||
Stock plan compensation expense | 17.9 | 17.9 | ||||||
Common stock dividends | (36.7) | (36.7) | ||||||
Acquisition of common stock | (92.4) | (26.5) | (65.9) | |||||
Net income | 7.3 | 7.3 | ||||||
Other comprehensive loss | (262.7) | (262.7) | ||||||
Ending balance at Sep. 30, 2022 | $ 4,098.9 | $ 0.6 | $ 1,627.1 | $ 3,678.9 | $ (1,084.9) | $ (122.8) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (usd per share) | $ 0.68 | $ 0.66 | $ 2.04 | $ 1.98 |
Preferred stock dividends (usd per share) | $ 1.63 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net income attributable to stockholders | $ 208.5 | $ 1,240.9 |
Noncash revenues, expenses, gains and losses included in net income from operations: | ||
Income from discontinued operations | 0 | (762) |
Deferred tax expense | 65.6 | 122.3 |
Depreciation and amortization | 140.2 | 126 |
Net realized losses (gains) on investments, including impairment losses | 166.2 | (123.2) |
Stock based compensation expense | 47.2 | 48.6 |
Loss on extinguishment of debt | 0.9 | 20.7 |
Changes in operating assets and liabilities: | ||
Insurance policy reserves and expenses | 2,388.4 | 1,425.8 |
Premiums and accounts receivable | (384.2) | (131.6) |
Commissions payable | (9.4) | (77.4) |
Reinsurance recoverable | (1,397.2) | (518.7) |
Reinsurance balance payable | 71.8 | 37.2 |
Funds withheld under reinsurance | 13.2 | (8.6) |
Deferred acquisition costs and value of business acquired | (514.1) | (706.6) |
Taxes payable (receivable) | 49.3 | (123.4) |
Other assets and other liabilities | (508.7) | (177.2) |
Other | (17.9) | (17) |
Net cash provided by operating activities - discontinued operations | 0 | 151.2 |
Net cash provided by operating activities | 319.8 | 527 |
Sales of: | ||
Fixed maturity securities available for sale | 2,310.3 | 668.9 |
Equity securities | 43.2 | 10.6 |
Other invested assets | 123.9 | 124.4 |
Subsidiary, net of cash transferred | 4.8 | 1,319.6 |
Maturities, calls, prepayments, and scheduled redemption of: | ||
Fixed maturity securities available for sale | 386.3 | 730.4 |
Commercial mortgage loans on real estate | 29.1 | 11 |
Purchases of: | ||
Fixed maturity securities available for sale | (2,681.9) | (2,316.9) |
Equity securities | (27) | (34.9) |
Commercial mortgage loans on real estate | (77) | (95.7) |
Other invested assets | (91.1) | (58.9) |
Property and equipment and other | (133.9) | (131.3) |
Subsidiaries, net of cash transferred | (16.6) | |
Change in short-term investments | (22.1) | (30.2) |
Other | 0.5 | 1.5 |
Net cash used in investing activities - discontinued operations | 0 | (145.2) |
Net cash (used in) provided by investing activities | (134.9) | 36.7 |
Financing activities | ||
Issuance of debt, net of issuance costs | 0 | 347.2 |
Repayment of debt | (75.9) | (419.8) |
Acquisition of common stock | (557.6) | (544.3) |
Common stock dividends paid | (112.7) | (118.5) |
Preferred stock dividends paid | 0 | (4.7) |
Employee stock purchases and withholdings | (21) | (17.3) |
Net cash provided by (used in) financing activities - discontinued operations | 0 | 0 |
Net cash used in financing activities | (767.2) | (757.4) |
Effect of exchange rate changes on cash and cash equivalents - continuing operations | (42.7) | (7.2) |
Effect of exchange rate changes on cash and cash equivalents - discontinued operations | 0 | 0.2 |
Effect of exchange rate changes on cash and cash equivalents | (42.7) | (7) |
Change in cash and cash equivalents | (625) | (200.7) |
Cash and cash equivalents at beginning of period | 2,054.8 | 2,228.6 |
Cash and cash equivalents at end of period | $ 1,429.8 | $ 2,027.9 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations | Nature of Operations Assurant, Inc. (the “Company”) is a leading global business services company that supports, protects and connects major consumer purchases. The Company supports the advancement of the connected world by partnering with the world’s leading brands to develop innovative solutions and to deliver an enhanced customer experience through mobile device solutions, extended service contracts, vehicle protection services, renters insurance, lender-placed insurance products and other specialty products. The Company operates in North America, Latin America, Europe and Asia Pacific through two operating segments: Global Lifestyle and Global Housing. Through its Global Lifestyle segment, the Company provides mobile device solutions, extended service products and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection and related services (referred to as “Global Automotive”). 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”). 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, 2022 | |
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, 2022 and for the three and nine months ended September 30, 2022 and 2021 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 revised to conform to the current year presentation, including the change to the segment measure of profitability described in Note 5. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The accompanying unaudited interim Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Revision of Prior Period Financial Statements In second quarter 2022, the Company revised its prior period financial statements to reflect the correction of an error identified in second quarter 2022 related to reinsurance of claims and benefits payable within the Connected Living business unit in the Global Lifestyle segment occurring in late 2018 through first quarter 2022, as well as other immaterial errors which were previously recorded in the periods in which the Company identified them. A summary of revisions to the Company’s consolidated balance sheet as of December 31, 2021; and the consolidated statements of operations, comprehensive income and changes in equity, in each case, for the three and nine months ended September 30, 2021, and cash flows for the nine months ended September 30, 2021 is presented in Note 17. The Company will also correct previously reported financial information for such errors in its future filings, as applicable. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Facilitation of the Effects of Reference Rate Reform on Financial Reporting : In March 2020, the Financial Accounting Standards Board (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. This standard is effective as of January 1, 2022, but has no impact on the Company’s consolidated financial statements as the Company currently has no contracts or hedging relationships for which the reference LIBOR or another rate is expected to be discontinued and a GAAP contract modification is required. 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 standard is effective as of January 1, 2022, but has no impact on the Company’s consolidated financial statements as the Company currently has no convertible instruments or contracts in its own equity. 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 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. 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. With the sale of the disposed Global Preneed business in August 2021, the adoption of this standard is expected to have no material impact on the Company’s financial position and results of operations. Recognition and Measurement of Revenue Contracts with Customers Acquired in a Business Combination : In October 2021, the FASB issued guidance to improve comparability after a business combination is reported in the acquirer’s financial statements by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. Generally, the acquirer will recognize the acquired contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in the acquisition accounting. Under the amended guidance, the acquirer should account for the related revenue contracts as if it had originated the contracts. The amendments provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendment is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The adoption of this standard is expected to have no material impact on the Company’s financial position and results of operations. Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions : In June 2022, the FASB issued guidance on investments in equity securities measured at fair value that are subject to contractual restrictions preventing the sale of those securities. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. Disclosures will be required to provide investors with information about the restriction including the fair value of the equity securities subject to any contractual sale restrictions reflected in the balance sheet, the nature and remaining duration of such restrictions, and any circumstances that could cause a lapse in such restrictions. The guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company plans to early adopt the standard if it invests in equity securities that have contractual restrictions preventing the sale of those securities prior to the effective date. Inflation Reduction Act of 2022: In August 2022, the U.S. government enacted the Inflation Reduction Act (the “IRA”) which makes changes to the Internal Revenue Code of 1986, as amended, including the imposition of (1) a new corporate alternative minimum tax (“CAMT”) based on applicable financial statement income and (2) a 1% excise tax on corporate stock repurchases. The effective date of the IRA is January 1, 2023. After initial analysis of the IRA, the Company does not expect a material impact to the financial statements in 2022. The Company is undergoing further analysis to determine if the CAMT will apply to the financial statements in 2023 and future years. Additionally, any excise tax incurred on corporate stock repurchases is expected to be recognized as part of the cost basis of the treasury stock acquired and not reported as part of income tax expense. |
Dispositions
Dispositions | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions | Dispositions Sale of Global Preneed On August 2, 2021, the Company completed its sale of the legal entities which comprise the businesses previously reported as the Global Preneed segment and certain businesses previously disposed of through reinsurance, which were previously reported in the Corporate and Other segment, to subsidiaries of CUNA Mutual Group for an aggregate purchase price at closing of $1.34 billion in cash. The following table summarizes the components of net income from discontinued operations included in the consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2021 2021 Revenues Net earned premiums $ 6.1 $ 42.6 Fees and other income 13.6 91.0 Net investment income 23.7 168.4 Net realized gains on investments and fair value changes to equity securities 0.5 4.2 Gain on disposal of businesses 926.4 920.1 Total revenues 970.3 1,226.3 Benefits, losses and expenses Policyholder benefits 24.6 172.7 Underwriting, selling, general and administrative expenses 12.8 85.2 Total benefits, losses and expenses 37.4 257.9 Income from discontinued operations before income taxes 932.9 968.4 Benefit for income taxes 204.1 206.4 Net income from discontinued operations $ 728.8 $ 762.0 Sale of John Alden Life Insurance Company On April 1, 2022, the Company completed its sale of John Alden Life Insurance Company (“JALIC”), a run-off business reported in the Corporate and Other segment. Prior to the sale, JALIC met the criteria for held for sale presentation and, therefore, its assets and liabilities were recorded as held for sale in the December 31, 2021 consolidated balance sheet. The major classes of assets and liabilities held for sale included $915.8 million of future policy benefits and expenses, $881.6 million of reinsurance recoverables, $159.6 million of other investments and $117.2 million of claims and benefits payable as December 31, 2021. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information In conjunction with the transition of the Company’s CEO and chief operating decision maker on January 1, 2022, the Company changed its segment measure of profitability for its reportable segments to an Adjusted EBITDA metric, as the primary measure used for purposes of making decisions about allocating resources to the segments and assessing performance, from segment net income from continuing operations, effective as of that date. Prior period amounts have been revised to reflect the new segment measure of profitability. Beginning with second quarter 2022, the Company changed the calculation of its segment measure of profitability, Adjusted EBITDA, to exclude certain businesses which the Company expects to fully exit, including the long-tail commercial liability businesses in Global Housing (sharing economy and small commercial businesses), as well as certain legacy long-duration insurance policies within Global Lifestyle (collectively referred to as “non-core operations”), and present them as a reconciling item to consolidated net income from continuing operations. The non-core operations have been or are in the process of being exited by the Company, but do not qualify as held for sale or discontinued operations under GAAP accounting guidance. As of September 30, 2022, the Company had three reportable segments: Global Lifestyle, Global Housing and Corporate and Other. The Company defines Adjusted EBITDA as net income from continuing operations, excluding net realized gains (losses) on investments and fair value changes to equity securities, COVID-19 direct and incremental expenses, loss on extinguishment of debt, non-core operations (defined above), net income (loss) attributable to non-controlling interests, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities), as well as other highly variable or unusual items. All prior period amounts have been revised, which impacts both segment Adjusted EBITDA and other adjustments under reconciling items to consolidated net income from continuing operations, but does not impact consolidated net income. The sharing economy and small commercial businesses, previously reported through the Company’s Global Housing segment, generated Adjusted EBITDA of $(3.6) million and $(46.8) million for the three and nine months ended September 30, 2022, respectively, and Adjusted EBITDA of $(6.1) million and $(0.6) million for the three and nine months ended September 30, 2021, respectively. The legacy long-duration insurance policies included in non-core operations and previously reported through the Company’s Global Lifestyle segment, generated Adjusted EBITDA of $0.7 million and $1.7 million for the three and nine months ended September 30, 2022, respectively, and Adjusted EBITDA of $(2.1) million and $(2.0) million for the three and nine months ended September 30, 2021, respectively. Segment Adjusted EBITDA was also revised for an error related to reinsurance of claims and benefits payable within the Connected Living business unit in the Global Lifestyle segment, and for other unrelated immaterial errors. See Note 2 for more information. The following table presents segment Adjusted EBITDA with a reconciliation to net income attributable to common shareholders: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Adjusted EBITDA by segment: Global Lifestyle $ 165.9 $ 176.3 $ 587.3 $ 546.0 Global Housing (25.0) 15.2 166.7 235.2 Corporate and Other (24.9) (23.0) (72.0) (67.8) Reconciling items to consolidated net income from continuing operations: Interest expense (26.3) (27.5) (80.4) (84.7) Depreciation expense (22.6) (18.1) (64.7) (52.4) Amortization of purchased intangible assets (17.3) (15.7) (51.9) (50.0) Net realized (losses) gains on investments and fair value changes to equity securities (27.4) 112.1 (166.2) 123.2 COVID-19 direct and incremental expenses (1.1) (2.0) (3.6) (7.2) Loss on extinguishment of debt — (20.7) (0.9) (20.7) Non-core operations (2.9) (8.2) (45.1) (2.6) Other adjustments (9.9) (0.2) (15.6) (6.3) Total reconciling items (107.5) 19.7 (428.4) (100.7) Income from continuing operations before income tax expense 8.5 188.2 253.6 612.7 Income tax expense 1.2 37.2 45.1 133.8 Net income from continuing operations $ 7.3 $ 151.0 $ 208.5 $ 478.9 The Company’s net earned premiums, fees and other income by segment and product are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Global Lifestyle: Connected Living (1) $ 1,046.8 $ 1,094.1 $ 3,182.0 $ 3,221.9 Global Automotive 943.5 867.1 2,751.5 2,535.1 Total $ 1,990.3 $ 1,961.2 $ 5,933.5 $ 5,757.0 Global Housing: Lender-placed Insurance $ 262.2 $ 256.2 $ 801.9 $ 790.9 Multifamily Housing 119.9 121.7 362.0 361.2 Specialty and Other 102.0 93.2 301.9 295.5 Total $ 484.1 $ 471.1 $ 1,465.8 $ 1,447.6 (1) Effective January 1, 2022, the Connected Living line of business includes the previous Global Financial Services and Other line of business. Prior period amounts have been revised to reflect this change. Net earned premiums, fees and other income for non-core operations were $17.2 million for each of the three months ended September 30, 2022 and 2021, and $44.7 million and $49.1 million for the nine months ended September 30, 2022 and 2021, respectively. The following table presents total assets by segment: September 30, 2022 December 31, 2021 Global Lifestyle (1) $ 26,617.9 $ 26,120.9 Global Housing (1) 5,367.8 4,007.3 Corporate and Other (2) 1,260.0 3,792.4 Segment assets $ 33,245.7 $ 33,920.6 (1) Segment assets for Global Lifestyle and Global Housing do not include net unrealized gains (losses) on securities attributable to those segments, which are all included within Corporate and Other. |
Contract Revenues
Contract Revenues | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contract Revenues | Contract Revenues The Company partners with clients to provide consumers with 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 $257.9 million and $264.0 million for Global Lifestyle and $19.8 million and $22.4 million for Global Housing for the three months ended September 30, 2022 and 2021, respectively. The disaggregated revenues from service contracts included in fees and other income on the consolidated statement of operations are $825.5 million and $730.1 million for Global Lifestyle and $63.4 million and $71.8 million for Global Housing for the nine months ended September 30, 2022 and 2021, 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 clients, 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. Payments are generally due prior to shipment or within a short-term period. 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 $265.9 million and $173.7 million, respectively, as of September 30, 2022, and $313.7 million and $191.5 million, respectively, as of December 31, 2021. 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, 2022 and 2021 that was included in unearned revenue as of December 31, 2021 and 2020 was $20.0 million and $12.5 million, respectively. Revenue from service contracts and sales of products recognized during the nine months ended September 30, 2022 and 2021 that was included in unearned revenue as of December 31, 2021 and 2020 was $69.0 million and $47.6 million, respectively. In certain circumstances, the Company defers upfront commissions and other costs in connection with client contracts in excess of one year where the Company can demonstrate future economic benefit. For these contracts, expense is recognized as revenues are earned. The Company periodically assesses recoverability based on the performance of the related contracts. As of September 30, 2022 and December 31, 2021, the Company had approximately $62.3 million and $93.0 million, respectively, of such intangible assets attributed to service contracts that will be expensed over the term of the client contracts. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Investments [Abstract] | |
Investments | Investments The following tables show the cost or amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value of the Company’s fixed maturity securities as of the dates indicated: September 30, 2022 Cost or Allowance for Credit Losses Gross Gross Fair Value Fixed maturity securities: U.S. government and government agencies and authorities $ 102.0 $ — $ 0.3 $ (7.1) $ 95.2 States, municipalities and political subdivisions 160.8 — 0.9 (16.6) 145.1 Foreign governments 403.1 — 0.6 (21.0) 382.7 Asset-backed 670.1 — 3.0 (46.9) 626.2 Commercial mortgage-backed 461.7 — — (50.5) 411.2 Residential mortgage-backed 515.5 — 0.5 (57.7) 458.3 U.S. corporate 3,253.0 — 9.9 (374.1) 2,888.8 Foreign corporate 1,297.4 — 1.9 (168.9) 1,130.4 Total fixed maturity securities $ 6,863.6 $ — $ 17.1 $ (742.8) $ 6,137.9 December 31, 2021 Cost or Allowance for Credit Losses Gross Gross Fair Value Fixed maturity securities: U.S. government and government agencies and authorities $ 83.0 $ — $ 2.1 $ (0.1) $ 85.0 States, municipalities and political subdivisions 142.2 — 7.0 (0.7) 148.5 Foreign governments 436.0 — 5.9 (4.2) 437.7 Asset-backed 411.1 — 14.2 (2.3) 423.0 Commercial mortgage-backed 466.7 — 10.3 (3.3) 473.7 Residential mortgage-backed 578.4 — 25.2 (1.7) 601.9 U.S. corporate 3,581.2 — 235.9 (14.0) 3,803.1 Foreign corporate 1,205.3 — 46.0 (8.9) 1,242.4 Total fixed maturity securities $ 6,903.9 $ — $ 346.6 $ (35.2) $ 7,215.3 The cost or amortized cost and fair value of fixed maturity securities as of September 30, 2022 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 $ 182.5 $ 181.6 Due after one year through five years 1,697.8 1,614.2 Due after five years through ten years 2,241.6 1,973.5 Due after ten years 1,094.4 872.9 Total 5,216.3 4,642.2 Asset-backed 670.1 626.2 Commercial mortgage-backed 461.7 411.2 Residential mortgage-backed 515.5 458.3 Total $ 6,863.6 $ 6,137.9 The following table sets forth the net realized gains (losses) on investments and fair value changes to equity securities, including impairments, recognized in the consolidated statements of operations for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities: Fixed maturity securities $ (21.9) $ 16.1 $ (63.0) $ 19.3 Equity securities (1) (5.2) 95.1 (102.4) 100.6 Commercial mortgage loans on real estate (0.2) 0.5 — 0.7 Other investments (0.1) 0.4 1.3 2.4 Total net realized (losses) gains on investments related to sales and other and fair value changes to equity securities (27.4) 112.1 (164.1) 123.0 Net realized (losses) gains related to impairments: Fixed maturity securities — — (1.6) 1.2 Other investments — — (0.5) (1.0) Total net realized (losses) gains related to impairments — — (2.1) 0.2 Total net realized (losses) gains on investments and fair value changes to equity securities $ (27.4) $ 112.1 $ (166.2) $ 123.2 (1) Upward adjustments of $0.0 million, $19.5 million, $23.0 million and $25.1 million and impairments of $0.0 million, $0.0 million, $0.0 million and $1.0 million were realized on equity investments accounted for under the measurement alternative for the three and nine months ended September 30, 2022 and 2021, respectively. The following table sets forth the portion of fair value changes to equity securities held for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net (losses) gains recognized on equity securities $ (5.2) $ 95.1 $ (102.4) $ 100.6 Less: Net realized gains related to sales of equity securities (0.2) 1.1 20.0 2.1 Total fair value changes to equity securities held (1) $ (5.0) $ 94.0 $ (122.4) $ 98.5 (1) Three and nine months ended September 30, 2022 included $0.6 million and $78.5 million of net losses from four equity positions that went public during 2021. The total fair value of these investments as of September 30, 2022 was $24.4 million, included in equity securities on the consolidated balance sheet. Equity investments accounted for under the measurement alternative are included within other investments on the consolidated balance sheets. The following table summarizes information related to these investments: September 30, 2022 December 31, 2021 Initial cost $ 86.0 $ 74.4 Cumulative upward adjustments 58.6 42.7 Cumulative downward adjustments (including impairments) (15.4) (15.4) Carrying value $ 129.2 $ 101.7 The investment category and duration of the Company’s gross unrealized losses on fixed maturity securities as of September 30, 2022 and December 31, 2021 were as follows: September 30, 2022 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 $ 87.8 $ (6.6) $ 4.1 $ (0.5) $ 91.9 $ (7.1) States, municipalities and political subdivisions 96.4 (10.9) 21.8 (5.7) 118.2 (16.6) Foreign governments 306.9 (17.9) 26.8 (3.1) 333.7 (21.0) Asset-backed 474.3 (38.5) 76.7 (8.4) 551.0 (46.9) Commercial mortgage-backed 337.9 (35.5) 73.3 (15.0) 411.2 (50.5) Residential mortgage-backed 413.2 (45.2) 32.3 (12.5) 445.5 (57.7) U.S. corporate 2,460.4 (295.9) 225.8 (78.2) 2,686.2 (374.1) Foreign corporate 942.8 (117.5) 157.8 (51.4) 1,100.6 (168.9) Total fixed maturity securities $ 5,119.7 $ (568.0) $ 618.6 $ (174.8) $ 5,738.3 $ (742.8) December 31, 2021 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 $ 31.5 $ (0.1) $ — $ — $ 31.5 $ (0.1) States, municipalities and political subdivisions 48.1 (0.7) — — 48.1 (0.7) Foreign governments 216.0 (4.1) 4.0 (0.1) 220.0 (4.2) Asset-backed 257.7 (2.1) 9.8 (0.2) 267.5 (2.3) Commercial mortgage-backed 274.8 (2.9) 2.0 (0.4) 276.8 (3.3) Residential mortgage-backed 94.0 (1.5) 10.0 (0.2) 104.0 (1.7) U.S. corporate 687.8 (13.1) 15.2 (0.9) 703.0 (14.0) Foreign corporate 394.0 (8.6) 6.7 (0.3) 400.7 (8.9) Total fixed maturity securities $ 2,003.9 $ (33.1) $ 47.7 $ (2.1) $ 2,051.6 $ (35.2) Total gross unrealized losses represented approximately 13% and 2% of the aggregate fair value of the related securities as of September 30, 2022 and December 31, 2021, respectively. Approximately 76% and 94% of these gross unrealized losses had been in a continuous loss position for less than twelve months as of September 30, 2022 and December 31, 2021, respectively. The total gross unrealized losses are comprised of 3,874 and 1,202 individual securities as of September 30, 2022 and December 31, 2021, respectively. In accordance with its policy, the Company concluded that for these securities, the gross unrealized losses as of September 30, 2022 and December 31, 2021 were related to non-credit factors and therefore, did not recognize credit-related losses during the three and nine months ended September 30, 2022. Additionally, the Company currently does not intend to and is not required to sell these investments prior to an anticipated recovery in value. The Company has entered into commercial mortgage loans, collateralized by the underlying real estate, on properties located throughout the U.S. As of September 30, 2022, approximately 36% of the outstanding principal balance of commercial mortgage loans was concentrated in the states of California, Texas and Maryland. 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 less than $0.1 million to $9.5 million as of September 30, 2022 and from $0.1 million to $9.6 million as of December 31, 2021. Credit quality indicators for commercial mortgage loans are loan-to-value and debt-service coverage ratios. The loan-to-value ratio compares the principal amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage. The debt-service coverage ratio compares a property’s net operating income to its debt-service payments and is commonly expressed as a ratio. The loan-to-value and debt-service coverage ratios are generally updated annually in the fourth quarter. The following table presents the amortized cost basis of commercial mortgage loans, excluding the allowance for credit losses, by origination year for certain key credit quality indicators at September 30, 2022 and December 31, 2021. September 30, 2022 Origination Year 2022 2021 2020 2019 2018 Prior Total % of Total Loan to value 70% and less $ 43.9 $ 68.8 $ — $ — $ — $ 85.9 $ 198.6 65.0 % 71% to 80% 30.9 44.8 2.7 — 4.6 1.0 84.0 27.5 % 81% to 95% — 21.0 — — — — 21.0 6.9 % Greater than 95% — — — — — 1.9 1.9 0.6 % Total $ 74.8 $ 134.6 $ 2.7 $ — $ 4.6 $ 88.8 $ 305.5 100.0 % September 30, 2022 Origination Year 2022 2021 2020 2019 2018 Prior Total % of Total Debt-service coverage ratios (2): Greater than 2.0 $ 24.0 $ 57.9 $ 2.7 $ — $ — $ 56.8 $ 141.4 46.3 % 1.5 to 2.0 26.9 37.1 — — 4.6 19.6 88.2 28.9 % 1.0 to 1.5 23.9 39.6 — — — 7.1 70.6 23.1 % Less than 1.0 — — — — — 5.3 5.3 1.7 % Total $ 74.8 $ 134.6 $ 2.7 $ — $ 4.6 $ 88.8 $ 305.5 100.0 % December 31, 2021 Origination Year 2021 2020 2019 2018 2017 Prior Total % of Total Loan to value 70% and less $ 71.7 $ 5.6 $ — $ — $ 4.0 $ 99.8 $ 181.1 70.3 % 71% to 80% 61.8 — — 4.7 — 1.0 67.5 26.2 % 81% to 95% — — — — — 1.1 1.1 0.4 % Greater than 95% — — — — 5.8 2.1 7.9 3.1 % Total $ 133.5 $ 5.6 $ — $ 4.7 $ 9.8 $ 104.0 $ 257.6 100.0 % December 31, 2021 Origination Year 2021 2020 2019 2018 2017 Prior Total % of Total Debt-service coverage ratios (2): Greater than 2.0 $ 59.3 $ 5.6 $ — $ — $ — $ 70.5 $ 135.4 52.6 % 1.5 to 2.0 34.1 — — 4.7 4.0 17.5 60.3 23.4 % 1.0 to 1.5 40.1 — — — — 9.9 50.0 19.4 % Less than 1.0 — — — — 5.8 6.1 11.9 4.6 % Total $ 133.5 $ 5.6 $ — $ 4.7 $ 9.8 $ 104.0 $ 257.6 100.0 % (1) Loan-to-value 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. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2022 | |
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. 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, 2022 and December 31, 2021. 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 and other derivatives. Other liabilities are comprised of investments in the AIP, contingent considerations related to business combinations and other derivatives. 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, 2022 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 95.2 $ — $ 95.2 $ — States, municipalities and political subdivisions 145.1 — 145.1 — Foreign governments 382.7 — 382.7 — Asset-backed 626.2 — 569.3 56.9 (7) Commercial mortgage-backed 411.2 — 411.2 — Residential mortgage-backed 458.3 — 458.3 — U.S. corporate 2,888.8 — 2,885.0 3.8 Foreign corporate 1,130.4 — 1,127.3 3.1 Equity securities: Mutual funds 32.9 32.9 — — Common stocks 37.4 36.5 0.7 0.2 Non-redeemable preferred stocks 232.3 — 232.3 — Short-term investments 228.1 150.0 (2) 78.1 (3) — Other investments 56.3 56.1 (1) — 0.2 Cash equivalents 667.0 608.5 (2) 58.5 (3) — Other assets 4.2 — 4.2 (4) — Assets held in separate accounts 9.8 4.5 (1) 5.3 (3) — Total financial assets $ 7,405.9 $ 888.5 $ 6,453.2 $ 64.2 Financial Liabilities Other liabilities $ 64.4 $ 56.1 (1) $ — $ 8.3 (5) Liabilities related to separate accounts 9.8 4.5 (1) 5.3 (3) — Total financial liabilities $ 74.2 $ 60.6 $ 5.3 $ 8.3 December 31, 2021 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 85.0 $ — $ 85.0 $ — States, municipalities and political subdivisions 148.5 — 148.5 — Foreign governments 437.7 — 437.7 — Asset-backed 423.0 — 423.0 — Commercial mortgage-backed 473.7 — 473.7 — Residential mortgage-backed 601.9 — 601.9 — U.S. corporate 3,803.1 — 3,799.7 3.4 Foreign corporate 1,242.4 — 1,238.8 3.6 Equity securities: Mutual funds 33.3 33.3 — — Common stocks 151.1 15.5 0.7 134.9 (6) Non-redeemable preferred stocks 261.3 — 261.3 — Short-term investments 207.2 200.1 (2) 7.1 — Other investments 72.6 72.4 (1) — 0.2 Cash equivalents 1,243.9 1,190.9 (2) 53.0 (3) — Other assets 1.7 — 1.7 (4) — Assets held in separate accounts 11.8 7.7 (1) 4.1 (3) — Total financial assets $ 9,198.2 $ 1,519.9 $ 7,536.2 $ 142.1 Financial Liabilities Other liabilities $ 76.4 $ 72.4 (1) $ — $ 4.0 (5) Liabilities related to separate accounts 11.8 7.7 (1) 4.1 (3) — Total financial liabilities $ 88.2 $ 80.1 $ 4.1 $ 4.0 (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 derivatives. (5) Includes contingent consideration liabilities and other derivatives. (6) These equity securities are subject to lock up agreements and therefore an illiquidity discount was applied to the exchange traded price, which includes significant unobservable inputs. (7) Primarily includes the fair value of private fixed maturity securities, which are originated by internal private asset managers, and may incorporate significant unobservable inputs. 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, 2022 Fair Value Carrying Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 304.4 $ 284.5 $ — $ — $ 284.5 Other investments 6.8 6.8 1.7 — 5.1 Other assets 13.8 13.8 — — 13.8 Total financial assets $ 325.0 $ 305.1 $ 1.7 $ — $ 303.4 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 8.1 $ 8.2 $ — $ — $ 8.2 Funds withheld under reinsurance 374.5 374.5 374.5 — — Debt 2,129.3 1,938.7 — 1,938.7 — Total financial liabilities $ 2,511.9 $ 2,321.4 $ 374.5 $ 1,938.7 $ 8.2 December 31, 2021 Fair Value Carrying Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 256.5 $ 266.0 $ — $ — $ 266.0 Other investments 4.2 4.2 2.0 — 2.2 Other assets 24.9 24.9 — — 24.9 Total financial assets $ 285.6 $ 295.1 $ 2.0 $ — $ 293.1 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 8.5 $ 9.6 $ — $ — $ 9.6 Funds withheld under reinsurance 364.2 364.2 364.2 — — Debt 2,202.5 2,456.3 — 2,456.3 — Total financial liabilities $ 2,575.2 $ 2,830.1 $ 364.2 $ 2,456.3 $ 9.6 |
Deferred Acquisition Costs
Deferred Acquisition Costs | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Acquisition Costs | Deferred Acquisition Costs The following table discloses information about deferred acquisition costs as of the dates indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Beginning balance $ 9,359.0 $ 8,136.6 $ 8,811.0 $ 7,393.5 Costs deferred 1,170.2 1,234.7 3,507.7 3,605.2 Amortization (951.4) (823.1) (2,740.9) (2,450.5) Ending balance $ 9,577.8 $ 8,548.2 $ 9,577.8 $ 8,548.2 |
Reserves
Reserves | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 Claims and benefits payable, at beginning of period $ 1,604.8 $ 1,619.9 Less: Reinsurance ceded and other (825.9) (850.5) Net claims and benefits payable, at beginning of period 778.9 769.4 Incurred losses and loss adjustment expenses related to: Current year 1,728.0 1,714.8 Prior years 32.5 (30.6) Total incurred losses and loss adjustment expenses 1,760.5 1,684.2 Paid losses and loss adjustment expenses related to: Current year 1,106.2 1,158.2 Prior years 449.8 447.7 Total paid losses and loss adjustment expenses 1,556.0 1,605.9 Net claims and benefits payable, at end of period 983.4 847.7 Plus: Reinsurance ceded and other (1) 2,039.0 1,057.3 Claims and benefits payable, at end of period (1) $ 3,022.4 $ 1,905.0 (1) Includes reinsurance recoverables and claims and benefits payable of $960.4 million and $221.6 million as of September 30, 2022 and 2021, 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. The Company experienced net unfavorable loss development for the nine months ended September 30, 2022 of $32.5 million and net favorable loss development of $30.6 million for the nine months ended September 30, 2021 as presented in the roll forward table above. The unfavorable development is attributed to the sharing economy and small commercial lines of business, now reported in the Corporate and Other segment within non-core operations. Global Lifestyle contributed $42.3 million and $34.1 million to the net favorable loss development for the nine months ended September 30, 2022 and 2021, respectively. The net favorable loss development in both periods was attributable to nearly all lines of business across most of the Company’s regions with a concentration on more recent accident years and based on emerging evaluations regarding loss experience each period. For the nine months ended September 30, 2022, Global Automotive also experienced favorable loss development from ancillary products due to the strong used vehicle market. Many of these contracts and products contain retrospective commission (profit sharing) provisions that would result in offsetting increases or decreases in expense dependent on if the development was favorable or unfavorable. Global Housing contributed $22.8 million of net unfavorable loss development for the nine months ended September 30, 2022 and $0.6 million of net favorable development for the nine months ended September 30, 2021. The net unfavorable loss development for the nine months ended September 30, 2022 was comprised of $11.1 million from non-catastrophe losses and $11.7 million from prior catastrophe events. Hurricane Eta from accident year 2020 drove the unfavorable development for |
Debt
Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt Redemption In June 2022, the Company redeemed $75.0 million of the $300.0 million then outstanding aggregate principal amount of its 4.20% Senior Notes due September 2023 at a make-whole premium plus accrued and unpaid interest to the redemption date. In connection with the redemption, the Company recognized a loss on extinguishment of debt of $0.9 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net losses on Pension Plans Accumulated Balance at June 30, 2022 $ (367.5) $ (370.1) $ 11.1 $ (95.7) $ (822.2) Change in accumulated other comprehensive income (loss) before reclassifications (51.4) (221.5) — 0.4 (272.5) Amounts reclassified from accumulated other comprehensive income (loss) — 12.2 (0.6) (1.8) 9.8 Net current-period other comprehensive income (loss) (51.4) (209.3) (0.6) (1.4) (262.7) Balance at September 30, 2022 $ (418.9) $ (579.4) $ 10.5 $ (97.1) $ (1,084.9) Three Months Ended September 30, 2021 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net losses on Pension Plans Accumulated Balance at June 30, 2021 $ (274.8) $ 974.5 $ 13.5 $ (109.2) $ 604.0 Change in accumulated other comprehensive income (loss) before reclassifications (23.4) (44.6) — 0.3 (67.7) Amounts reclassified from accumulated other comprehensive income (loss) (0.3) (618.5) (0.6) (1.0) (620.4) Net current-period other comprehensive income (loss) (23.7) (663.1) (0.6) (0.7) (688.1) Balance at September 30, 2021 $ (298.5) $ 311.4 $ 12.9 $ (109.9) $ (84.1) Nine Months Ended September 30, 2022 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net losses on Pension Plans Accumulated Balance at December 31, 2021 $ (326.9) $ 256.6 $ 12.4 $ (92.1) $ (150.0) Change in accumulated other comprehensive income (loss) before reclassifications (92.0) (874.3) — 0.4 (965.9) Amounts reclassified from accumulated other comprehensive income (loss) (1) — 38.3 (1.9) (5.4) 31.0 Net current-period other comprehensive income (loss) (92.0) (836.0) (1.9) (5.0) (934.9) Balance at September 30, 2022 $ (418.9) $ (579.4) $ 10.5 $ (97.1) $ (1,084.9) Nine Months Ended September 30, 2021 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net losses on Pension Plans Accumulated Balance at December 31, 2020 $ (295.6) $ 1,097.6 $ 14.7 $ (106.9) $ 709.8 Change in accumulated other comprehensive income (loss) before reclassifications (2.6) (162.5) — 0.6 (164.5) Amounts reclassified from accumulated other comprehensive income (loss) (0.3) (623.7) (1.8) (3.6) (629.4) Net current-period other (2.9) (786.2) (1.8) (3.0) (793.9) Balance at September 30, 2021 $ (298.5) $ 311.4 $ 12.9 $ (109.9) $ (84.1) The following tables summarize the reclassifications out of accumulated other comprehensive income (“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, 2022 2021 Foreign currency translation adjustment $ — $ (0.8) Underwriting, selling, general and administrative expenses — 0.5 Provision for income taxes $ — $ (0.3) Net of tax Net unrealized losses (gains) on investments $ 15.5 $ (789.6) Net realized losses (gains) on investments (3.3) 171.1 Provision for income taxes $ 12.2 $ (618.5) Net of tax Net unrealized gains on derivative transactions $ (0.7) $ (0.7) Interest expense 0.1 0.1 Provision for income taxes $ (0.6) $ (0.6) Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss $ 1.1 $ 1.8 (1) Amortization of prior service credit (3.4) (3.4) (1) Settlement loss — 0.3 (1) (2.3) (1.3) 0.5 0.3 Provision for income taxes $ (1.8) $ (1.0) Net of tax Total reclassifications for the period $ 9.8 $ (620.4) Net of tax Details about accumulated other comprehensive income components Amount reclassified from Affected line item in the Nine Months Ended September 30, 2022 2021 Foreign currency translation adjustment $ — $ (0.8) Underwriting, selling, general and administrative expenses — 0.5 Provision for income taxes $ — $ (0.3) Net of tax Net unrealized losses (gains) on investments $ 48.5 $ (796.1) Net realized losses (gains) on investments (10.2) 172.4 Provision for income taxes $ 38.3 $ (623.7) Net of tax Net unrealized gains on derivative transactions $ (2.3) $ (2.1) Interest expense 0.4 0.3 Provision for income taxes $ (1.9) $ (1.8) Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss $ 3.3 $ 5.4 (1) Amortization of prior service credit (10.2) (10.2) (1) Settlement loss — 0.3 (1) (6.9) (4.5) 1.5 0.9 Provision for income taxes $ (5.4) $ (3.6) Net of tax Total reclassifications for the period $ 31.0 $ (629.4) Net of tax |
Equity Transactions
Equity Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Class of Stock Disclosures [Abstract] | |
Equity Transactions | Equity Transactions Mandatory Convertible Preferred Stock (“MCPS”) In March 2018, the Company issued 2,875,000 shares of the MCPS, with a par value of $1.00 per share, at a public offering price of $100.00 per share. Each outstanding share of MCPS converted in March 2021 into 0.9405 of common shares, or 2,703,911 common shares in total plus an immaterial amount of cash in lieu of fractional shares. The Company used a portion of its treasury stock for the common shares, using the average cost method to account for the reissuance of such shares. Dividends on the MCPS were payable on a cumulative basis when, as and if declared, at an annual rate of 6.50% of the liquidation preference of $100.00 per share. The Company paid preferred stock dividends of $4.7 million for the nine months ended September 30, 2021. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
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 performance share units (“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 the conversion of the MCPS using the if-converted method. The outstanding restricted stock units (“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, 2022 2021 2022 2021 Numerator Net income from continuing operations $ 7.3 $ 151.0 $ 208.5 $ 478.9 Less: Preferred stock dividends — — — (4.7) Net income from continuing operations attributable to common stockholders 7.3 151.0 208.5 474.2 Less: Common stock dividends paid (36.7) (38.5) (112.7) (118.5) Undistributed earnings $ (29.4) $ 112.5 $ 95.8 $ 355.7 Net income from continuing operations attributable to common stockholders $ 7.3 $ 151.0 $ 208.5 $ 474.2 Add: Net income from discontinued operations — 728.8 — 762.0 Net income attributable to common stockholders $ 7.3 $ 879.8 $ 208.5 $ 1,236.2 Denominator Weighted average common shares outstanding used in basic per common share calculations 53,717,373 59,126,313 54,693,799 59,769,690 Incremental common shares from: PSUs 345,887 352,918 425,887 371,793 ESPP 3,345 233 5,164 — MCPS — — — 713,838 Weighted average common shares outstanding used in diluted per common share calculations 54,066,605 59,479,464 55,124,850 60,855,321 Earnings per common share - Basic Distributed earnings $ 0.68 $ 0.65 $ 2.06 $ 1.98 Undistributed earnings (0.54) 1.91 1.75 5.96 Net income from continuing operations 0.14 2.56 3.81 7.94 Net income from discontinued operations — 12.32 — 12.74 Net income attributable to common stockholders $ 0.14 $ 14.88 $ 3.81 $ 20.68 Earnings per common share - Diluted Distributed earnings $ 0.68 $ 0.65 $ 2.04 $ 1.95 Undistributed earnings (0.54) 1.89 1.74 5.92 Net income from continuing operations 0.14 2.54 3.78 7.87 Net income from discontinued operations — 12.25 — 12.52 Net income attributable to common stockholders $ 0.14 $ 14.79 $ 3.78 $ 20.39 |
Retirement and Other Employee B
Retirement and Other Employee Benefits | 9 Months Ended |
Sep. 30, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Retirement and Other Employee Benefits | Retirement and Other Employee Benefits The Company and its subsidiaries participate in a non-contributory, qualified defined benefit pension plan (“Assurant Pension Plan”) covering substantially all employees prior to closing to new hires on January 1, 2014. 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, 2022 and 2021: 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, 2022 2021 2022 2021 2022 2021 Interest cost $ 4.1 $ 3.5 $ 0.3 $ 0.3 $ — $ 0.1 Expected return on plan assets (6.9) (6.8) — — (0.3) (0.4) Amortization of prior service credit — — — — (3.4) (3.4) Amortization of net loss (gain) 0.8 1.2 0.5 0.8 (0.2) (0.2) Settlement loss — — 1.8 0.3 — — Net periodic benefit cost $ (2.0) $ (2.1) $ 2.6 $ 1.4 $ (3.9) $ (3.9) 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, 2022 2021 2022 2021 2022 2021 Interest cost $ 12.5 $ 10.5 $ 1.0 $ 0.9 $ 0.1 $ 0.1 Expected return on plan assets (20.7) (20.6) — — (1.0) (1.2) Amortization of prior service credit — — — — (10.2) (10.2) Amortization of net loss (gain) 2.3 3.6 1.6 2.4 (0.6) (0.4) Settlement loss — — 1.8 0.3 — — Net periodic benefit cost $ (5.9) $ (6.5) $ 4.4 $ 3.6 $ (11.7) $ (11.7) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
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 $7.0 million and $7.2 million of letters of credit outstanding as of September 30, 2022 and December 31, 2021, 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. The Company continues to defend itself vigorously in these proceedings. The Company has participated and may participate in settlements on terms that the Company considers reasonable. |
Revision of Prior Period Financ
Revision of Prior Period Financial Statements | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements The Company revised its prior period financial statements for an error related to reinsurance of claims and benefits payable within the Connected Living business unit in the Global Lifestyle segment occurring in late 2018 through first quarter 2022 that resulted in an understatement of policyholder benefits and an overstatement of net income. See Note 2 for additional information. In addition, the Company has corrected other unrelated immaterial errors which were previously recorded in the periods in which the Company identified them. A summary of revisions to our previously reported financial statements is presented below (in millions, except for per share data). Revised Consolidated Balance Sheet As of December 31, 2021 As Reported Adjustment As Revised Reinsurance recoverables $ 6,178.9 $ 2.3 $ 6,181.2 Other Assets 692.1 6.8 698.9 Total assets 33,911.5 9.1 33,920.6 Claims and benefits payable 1,595.9 8.9 1,604.8 Reinsurance balances payable 420.4 25.8 446.2 Total liabilities 28,421.8 34.7 28,456.5 Retained Earnings 4,066.8 (25.6) 4,041.2 Total Assurant, Inc. stockholders’ equity 5,489.7 (25.6) 5,464.1 Total equity 5,489.7 (25.6) 5,464.1 Total liabilities and equity 33,911.5 9.1 33,920.6 Revised Consolidated Statements of Operations Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 As Reported Adjustment As Revised As Reported Adjustment As Revised Policyholder benefits $ 614.2 $ 3.2 $ 617.4 $ 1,681.2 $ 3.0 $ 1,684.2 Underwriting, general and administrative expenses 818.3 0.1 818.4 2,301.2 5.5 2,306.7 Total benefits, losses and expenses 2,446.3 3.3 2,449.6 6,991.5 8.5 7,000.0 Income from continuing operations before income tax expense 191.5 (3.3) 188.2 621.2 (8.5) 612.7 Income tax expense 37.9 (0.7) 37.2 134.4 (0.6) 133.8 Net income from continuing operations 153.6 (2.6) 151.0 486.8 (7.9) 478.9 Net income 882.4 (2.6) 879.8 1,248.8 (7.9) 1,240.9 Net income attributable to stockholders 882.4 (2.6) 879.8 1,248.8 (7.9) 1,240.9 Net income attributable to common stockholders 882.4 (2.6) 879.8 1,244.1 (7.9) 1,236.2 Basic earnings per share from continuing operations 2.60 (0.04) 2.56 8.07 (0.13) 7.94 Basic earnings per share attributable to common stockholders 14.92 (0.04) 14.88 20.81 (0.13) 20.68 Diluted earnings per share from continuing operations 2.58 (0.04) 2.54 8.00 (0.13) 7.87 Diluted earnings per share attributable to common stockholders 14.83 (0.04) 14.79 20.52 (0.13) 20.39 Revised Consolidated Statements of Comprehensive Income Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 As Reported Adjustment As Revised As Reported Adjustment As Revised Net Income $ 882.4 $ (2.6) $ 879.8 $ 1,248.8 $ (7.9) $ 1,240.9 Total comprehensive income 194.3 (2.6) 191.7 454.9 (7.9) 447.0 Total comprehensive income attributable to stockholders 194.3 (2.6) 191.7 454.9 (7.9) 447.0 Revised Consolidated Statements of Changes in Equity Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 As Reported Adjustment As Revised As Reported Adjustment As Revised Beginning equity $ 5,908.4 $ (20.5) $ 5,887.9 $ 5,954.8 $ (15.2) $ 5,939.6 Net Income 882.4 (2.6) 879.8 1,248.8 (7.9) 1,240.9 Ending equity 5,744.4 (23.1) 5,721.3 5,744.4 (23.1) 5,721.3 Revised Consolidated Statement of Cash Flows Nine Months Ended September 30, 2021 As Reported Adjustment As Revised Operating activities Net Income Attributable to Stockholders $ 1,248.8 $ (7.9) $ 1,240.9 Change in insurance policy reserves and expenses 1,427.8 (2.0) 1,425.8 Change in reinsurance recoverable (517.7) (1.0) (518.7) Change in reinsurance balance payable 31.2 6.0 37.2 Change in deferred acquisition costs and value of business acquired (712.1) 5.5 (706.6) Change in taxes receivable (122.7) (0.7) (123.4) Other (17.1) 0.1 (17.0) Net cash provided by operating activities 527.0 — 527.0 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On November 1, 2022, the Company acquired American Lease Insurance Agency Corporation (“ALI”), a managing general agency headquartered in the Commonwealth of Massachusetts, and its captive subsidiary, The Equipment Lease Reinsurance Company Ltd, licensed in Turks and Caicos, for a total base price of $59.8 million in cash. ALI is a provider of property and liability insurance products for commercial equipment and vehicles that are leased or financed. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and for the three and nine months ended September 30, 2022 and 2021 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 |
Revision of Prior Period Financial Statements | Revision of Prior Period Financial Statements In second quarter 2022, the Company revised its prior period financial statements to reflect the correction of an error identified in second quarter 2022 related to reinsurance of claims and benefits payable within the Connected Living business unit in the Global Lifestyle segment occurring in late 2018 through first quarter 2022, as well as other immaterial errors which were previously recorded in the periods in which the Company identified them. A summary of revisions to the Company’s consolidated balance sheet as of December 31, 2021; and the consolidated statements of operations, comprehensive income and changes in equity, in each case, for the three and nine months ended September 30, 2021, and cash flows for the nine months ended September 30, 2021 is presented in Note 17. The Company will also correct previously reported financial information for such errors in its future filings, as applicable. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Facilitation of the Effects of Reference Rate Reform on Financial Reporting : In March 2020, the Financial Accounting Standards Board (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. This standard is effective as of January 1, 2022, but has no impact on the Company’s consolidated financial statements as the Company currently has no contracts or hedging relationships for which the reference LIBOR or another rate is expected to be discontinued and a GAAP contract modification is required. 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 standard is effective as of January 1, 2022, but has no impact on the Company’s consolidated financial statements as the Company currently has no convertible instruments or contracts in its own equity. 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 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. 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. With the sale of the disposed Global Preneed business in August 2021, the adoption of this standard is expected to have no material impact on the Company’s financial position and results of operations. Recognition and Measurement of Revenue Contracts with Customers Acquired in a Business Combination : In October 2021, the FASB issued guidance to improve comparability after a business combination is reported in the acquirer’s financial statements by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. Generally, the acquirer will recognize the acquired contract assets and contract liabilities at the same amounts recorded by the acquiree. Historically, such amounts were recognized by the acquirer at fair value in the acquisition accounting. Under the amended guidance, the acquirer should account for the related revenue contracts as if it had originated the contracts. The amendments provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendment is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. The adoption of this standard is expected to have no material impact on the Company’s financial position and results of operations. Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions : In June 2022, the FASB issued guidance on investments in equity securities measured at fair value that are subject to contractual restrictions preventing the sale of those securities. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. Disclosures will be required to provide investors with information about the restriction including the fair value of the equity securities subject to any contractual sale restrictions reflected in the balance sheet, the nature and remaining duration of such restrictions, and any circumstances that could cause a lapse in such restrictions. The guidance is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company plans to early adopt the standard if it invests in equity securities that have contractual restrictions preventing the sale of those securities prior to the effective date. Inflation Reduction Act of 2022: In August 2022, the U.S. government enacted the Inflation Reduction Act (the “IRA”) which makes changes to the Internal Revenue Code of 1986, as amended, including the imposition of (1) a new corporate alternative minimum tax (“CAMT”) based on applicable financial statement income and (2) a 1% excise tax on corporate stock repurchases. The effective date of the IRA is January 1, 2023. After initial analysis of the IRA, the Company does not expect a material impact to the financial statements in 2022. The Company is undergoing further analysis to determine if the CAMT will apply to the financial statements in 2023 and future years. Additionally, any excise tax incurred on corporate stock repurchases is expected to be recognized as part of the cost basis of the treasury stock acquired and not reported as part of income tax expense. |
Dispositions (Tables)
Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table summarizes the components of net income from discontinued operations included in the consolidated statements of operations: Three Months Ended September 30, Nine Months Ended September 30, 2021 2021 Revenues Net earned premiums $ 6.1 $ 42.6 Fees and other income 13.6 91.0 Net investment income 23.7 168.4 Net realized gains on investments and fair value changes to equity securities 0.5 4.2 Gain on disposal of businesses 926.4 920.1 Total revenues 970.3 1,226.3 Benefits, losses and expenses Policyholder benefits 24.6 172.7 Underwriting, selling, general and administrative expenses 12.8 85.2 Total benefits, losses and expenses 37.4 257.9 Income from discontinued operations before income taxes 932.9 968.4 Benefit for income taxes 204.1 206.4 Net income from discontinued operations $ 728.8 $ 762.0 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Segment | The following table presents segment Adjusted EBITDA with a reconciliation to net income attributable to common shareholders: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Adjusted EBITDA by segment: Global Lifestyle $ 165.9 $ 176.3 $ 587.3 $ 546.0 Global Housing (25.0) 15.2 166.7 235.2 Corporate and Other (24.9) (23.0) (72.0) (67.8) Reconciling items to consolidated net income from continuing operations: Interest expense (26.3) (27.5) (80.4) (84.7) Depreciation expense (22.6) (18.1) (64.7) (52.4) Amortization of purchased intangible assets (17.3) (15.7) (51.9) (50.0) Net realized (losses) gains on investments and fair value changes to equity securities (27.4) 112.1 (166.2) 123.2 COVID-19 direct and incremental expenses (1.1) (2.0) (3.6) (7.2) Loss on extinguishment of debt — (20.7) (0.9) (20.7) Non-core operations (2.9) (8.2) (45.1) (2.6) Other adjustments (9.9) (0.2) (15.6) (6.3) Total reconciling items (107.5) 19.7 (428.4) (100.7) Income from continuing operations before income tax expense 8.5 188.2 253.6 612.7 Income tax expense 1.2 37.2 45.1 133.8 Net income from continuing operations $ 7.3 $ 151.0 $ 208.5 $ 478.9 The Company’s net earned premiums, fees and other income by segment and product are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Global Lifestyle: Connected Living (1) $ 1,046.8 $ 1,094.1 $ 3,182.0 $ 3,221.9 Global Automotive 943.5 867.1 2,751.5 2,535.1 Total $ 1,990.3 $ 1,961.2 $ 5,933.5 $ 5,757.0 Global Housing: Lender-placed Insurance $ 262.2 $ 256.2 $ 801.9 $ 790.9 Multifamily Housing 119.9 121.7 362.0 361.2 Specialty and Other 102.0 93.2 301.9 295.5 Total $ 484.1 $ 471.1 $ 1,465.8 $ 1,447.6 (1) Effective January 1, 2022, the Connected Living line of business includes the previous Global Financial Services and Other line of business. Prior period amounts have been revised to reflect this change. The following table presents total assets by segment: September 30, 2022 December 31, 2021 Global Lifestyle (1) $ 26,617.9 $ 26,120.9 Global Housing (1) 5,367.8 4,007.3 Corporate and Other (2) 1,260.0 3,792.4 Segment assets $ 33,245.7 $ 33,920.6 (1) Segment assets for Global Lifestyle and Global Housing do not include net unrealized gains (losses) on securities attributable to those segments, which are all included within Corporate and Other. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses, Fair Value | The following tables show the cost or amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value of the Company’s fixed maturity securities as of the dates indicated: September 30, 2022 Cost or Allowance for Credit Losses Gross Gross Fair Value Fixed maturity securities: U.S. government and government agencies and authorities $ 102.0 $ — $ 0.3 $ (7.1) $ 95.2 States, municipalities and political subdivisions 160.8 — 0.9 (16.6) 145.1 Foreign governments 403.1 — 0.6 (21.0) 382.7 Asset-backed 670.1 — 3.0 (46.9) 626.2 Commercial mortgage-backed 461.7 — — (50.5) 411.2 Residential mortgage-backed 515.5 — 0.5 (57.7) 458.3 U.S. corporate 3,253.0 — 9.9 (374.1) 2,888.8 Foreign corporate 1,297.4 — 1.9 (168.9) 1,130.4 Total fixed maturity securities $ 6,863.6 $ — $ 17.1 $ (742.8) $ 6,137.9 December 31, 2021 Cost or Allowance for Credit Losses Gross Gross Fair Value Fixed maturity securities: U.S. government and government agencies and authorities $ 83.0 $ — $ 2.1 $ (0.1) $ 85.0 States, municipalities and political subdivisions 142.2 — 7.0 (0.7) 148.5 Foreign governments 436.0 — 5.9 (4.2) 437.7 Asset-backed 411.1 — 14.2 (2.3) 423.0 Commercial mortgage-backed 466.7 — 10.3 (3.3) 473.7 Residential mortgage-backed 578.4 — 25.2 (1.7) 601.9 U.S. corporate 3,581.2 — 235.9 (14.0) 3,803.1 Foreign corporate 1,205.3 — 46.0 (8.9) 1,242.4 Total fixed maturity securities $ 6,903.9 $ — $ 346.6 $ (35.2) $ 7,215.3 |
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, 2022 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 $ 182.5 $ 181.6 Due after one year through five years 1,697.8 1,614.2 Due after five years through ten years 2,241.6 1,973.5 Due after ten years 1,094.4 872.9 Total 5,216.3 4,642.2 Asset-backed 670.1 626.2 Commercial mortgage-backed 461.7 411.2 Residential mortgage-backed 515.5 458.3 Total $ 6,863.6 $ 6,137.9 |
Net Realized Gains (Losses), Including Other-Than-Temporary Impairments | The following table sets forth the net realized gains (losses) on investments and fair value changes to equity securities, including impairments, recognized in the consolidated statements of operations for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities: Fixed maturity securities $ (21.9) $ 16.1 $ (63.0) $ 19.3 Equity securities (1) (5.2) 95.1 (102.4) 100.6 Commercial mortgage loans on real estate (0.2) 0.5 — 0.7 Other investments (0.1) 0.4 1.3 2.4 Total net realized (losses) gains on investments related to sales and other and fair value changes to equity securities (27.4) 112.1 (164.1) 123.0 Net realized (losses) gains related to impairments: Fixed maturity securities — — (1.6) 1.2 Other investments — — (0.5) (1.0) Total net realized (losses) gains related to impairments — — (2.1) 0.2 Total net realized (losses) gains on investments and fair value changes to equity securities $ (27.4) $ 112.1 $ (166.2) $ 123.2 (1) Upward adjustments of $0.0 million, $19.5 million, $23.0 million and $25.1 million and impairments of $0.0 million, $0.0 million, $0.0 million and $1.0 million were realized on equity investments accounted for under the measurement alternative for the three and nine months ended September 30, 2022 and 2021, respectively. |
Unrealized Gains on Equity Securities | The following table sets forth the portion of fair value changes to equity securities held for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net (losses) gains recognized on equity securities $ (5.2) $ 95.1 $ (102.4) $ 100.6 Less: Net realized gains related to sales of equity securities (0.2) 1.1 20.0 2.1 Total fair value changes to equity securities held (1) $ (5.0) $ 94.0 $ (122.4) $ 98.5 |
Equity Securities without Readily Determinable Fair Value | The following table summarizes information related to these investments: September 30, 2022 December 31, 2021 Initial cost $ 86.0 $ 74.4 Cumulative upward adjustments 58.6 42.7 Cumulative downward adjustments (including impairments) (15.4) (15.4) Carrying value $ 129.2 $ 101.7 |
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, 2022 and December 31, 2021 were as follows: September 30, 2022 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 $ 87.8 $ (6.6) $ 4.1 $ (0.5) $ 91.9 $ (7.1) States, municipalities and political subdivisions 96.4 (10.9) 21.8 (5.7) 118.2 (16.6) Foreign governments 306.9 (17.9) 26.8 (3.1) 333.7 (21.0) Asset-backed 474.3 (38.5) 76.7 (8.4) 551.0 (46.9) Commercial mortgage-backed 337.9 (35.5) 73.3 (15.0) 411.2 (50.5) Residential mortgage-backed 413.2 (45.2) 32.3 (12.5) 445.5 (57.7) U.S. corporate 2,460.4 (295.9) 225.8 (78.2) 2,686.2 (374.1) Foreign corporate 942.8 (117.5) 157.8 (51.4) 1,100.6 (168.9) Total fixed maturity securities $ 5,119.7 $ (568.0) $ 618.6 $ (174.8) $ 5,738.3 $ (742.8) December 31, 2021 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 $ 31.5 $ (0.1) $ — $ — $ 31.5 $ (0.1) States, municipalities and political subdivisions 48.1 (0.7) — — 48.1 (0.7) Foreign governments 216.0 (4.1) 4.0 (0.1) 220.0 (4.2) Asset-backed 257.7 (2.1) 9.8 (0.2) 267.5 (2.3) Commercial mortgage-backed 274.8 (2.9) 2.0 (0.4) 276.8 (3.3) Residential mortgage-backed 94.0 (1.5) 10.0 (0.2) 104.0 (1.7) U.S. corporate 687.8 (13.1) 15.2 (0.9) 703.0 (14.0) Foreign corporate 394.0 (8.6) 6.7 (0.3) 400.7 (8.9) Total fixed maturity securities $ 2,003.9 $ (33.1) $ 47.7 $ (2.1) $ 2,051.6 $ (35.2) |
Credit Quality Indicators | The following table presents the amortized cost basis of commercial mortgage loans, excluding the allowance for credit losses, by origination year for certain key credit quality indicators at September 30, 2022 and December 31, 2021. September 30, 2022 Origination Year 2022 2021 2020 2019 2018 Prior Total % of Total Loan to value 70% and less $ 43.9 $ 68.8 $ — $ — $ — $ 85.9 $ 198.6 65.0 % 71% to 80% 30.9 44.8 2.7 — 4.6 1.0 84.0 27.5 % 81% to 95% — 21.0 — — — — 21.0 6.9 % Greater than 95% — — — — — 1.9 1.9 0.6 % Total $ 74.8 $ 134.6 $ 2.7 $ — $ 4.6 $ 88.8 $ 305.5 100.0 % September 30, 2022 Origination Year 2022 2021 2020 2019 2018 Prior Total % of Total Debt-service coverage ratios (2): Greater than 2.0 $ 24.0 $ 57.9 $ 2.7 $ — $ — $ 56.8 $ 141.4 46.3 % 1.5 to 2.0 26.9 37.1 — — 4.6 19.6 88.2 28.9 % 1.0 to 1.5 23.9 39.6 — — — 7.1 70.6 23.1 % Less than 1.0 — — — — — 5.3 5.3 1.7 % Total $ 74.8 $ 134.6 $ 2.7 $ — $ 4.6 $ 88.8 $ 305.5 100.0 % December 31, 2021 Origination Year 2021 2020 2019 2018 2017 Prior Total % of Total Loan to value 70% and less $ 71.7 $ 5.6 $ — $ — $ 4.0 $ 99.8 $ 181.1 70.3 % 71% to 80% 61.8 — — 4.7 — 1.0 67.5 26.2 % 81% to 95% — — — — — 1.1 1.1 0.4 % Greater than 95% — — — — 5.8 2.1 7.9 3.1 % Total $ 133.5 $ 5.6 $ — $ 4.7 $ 9.8 $ 104.0 $ 257.6 100.0 % December 31, 2021 Origination Year 2021 2020 2019 2018 2017 Prior Total % of Total Debt-service coverage ratios (2): Greater than 2.0 $ 59.3 $ 5.6 $ — $ — $ — $ 70.5 $ 135.4 52.6 % 1.5 to 2.0 34.1 — — 4.7 4.0 17.5 60.3 23.4 % 1.0 to 1.5 40.1 — — — — 9.9 50.0 19.4 % Less than 1.0 — — — — 5.8 6.1 11.9 4.6 % Total $ 133.5 $ 5.6 $ — $ 4.7 $ 9.8 $ 104.0 $ 257.6 100.0 % (1) Loan-to-value 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. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and December 31, 2021. 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 and other derivatives. Other liabilities are comprised of investments in the AIP, contingent considerations related to business combinations and other derivatives. 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, 2022 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 95.2 $ — $ 95.2 $ — States, municipalities and political subdivisions 145.1 — 145.1 — Foreign governments 382.7 — 382.7 — Asset-backed 626.2 — 569.3 56.9 (7) Commercial mortgage-backed 411.2 — 411.2 — Residential mortgage-backed 458.3 — 458.3 — U.S. corporate 2,888.8 — 2,885.0 3.8 Foreign corporate 1,130.4 — 1,127.3 3.1 Equity securities: Mutual funds 32.9 32.9 — — Common stocks 37.4 36.5 0.7 0.2 Non-redeemable preferred stocks 232.3 — 232.3 — Short-term investments 228.1 150.0 (2) 78.1 (3) — Other investments 56.3 56.1 (1) — 0.2 Cash equivalents 667.0 608.5 (2) 58.5 (3) — Other assets 4.2 — 4.2 (4) — Assets held in separate accounts 9.8 4.5 (1) 5.3 (3) — Total financial assets $ 7,405.9 $ 888.5 $ 6,453.2 $ 64.2 Financial Liabilities Other liabilities $ 64.4 $ 56.1 (1) $ — $ 8.3 (5) Liabilities related to separate accounts 9.8 4.5 (1) 5.3 (3) — Total financial liabilities $ 74.2 $ 60.6 $ 5.3 $ 8.3 December 31, 2021 Total Level 1 Level 2 Level 3 Financial Assets Fixed maturity securities: U.S. government and government agencies and authorities $ 85.0 $ — $ 85.0 $ — States, municipalities and political subdivisions 148.5 — 148.5 — Foreign governments 437.7 — 437.7 — Asset-backed 423.0 — 423.0 — Commercial mortgage-backed 473.7 — 473.7 — Residential mortgage-backed 601.9 — 601.9 — U.S. corporate 3,803.1 — 3,799.7 3.4 Foreign corporate 1,242.4 — 1,238.8 3.6 Equity securities: Mutual funds 33.3 33.3 — — Common stocks 151.1 15.5 0.7 134.9 (6) Non-redeemable preferred stocks 261.3 — 261.3 — Short-term investments 207.2 200.1 (2) 7.1 — Other investments 72.6 72.4 (1) — 0.2 Cash equivalents 1,243.9 1,190.9 (2) 53.0 (3) — Other assets 1.7 — 1.7 (4) — Assets held in separate accounts 11.8 7.7 (1) 4.1 (3) — Total financial assets $ 9,198.2 $ 1,519.9 $ 7,536.2 $ 142.1 Financial Liabilities Other liabilities $ 76.4 $ 72.4 (1) $ — $ 4.0 (5) Liabilities related to separate accounts 11.8 7.7 (1) 4.1 (3) — Total financial liabilities $ 88.2 $ 80.1 $ 4.1 $ 4.0 (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 derivatives. (5) Includes contingent consideration liabilities and other derivatives. (6) These equity securities are subject to lock up agreements and therefore an illiquidity discount was applied to the exchange traded price, which includes significant unobservable inputs. (7) Primarily includes the fair value of private fixed maturity securities, which are originated by internal private asset managers, and may incorporate significant unobservable inputs. |
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, 2022 Fair Value Carrying Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 304.4 $ 284.5 $ — $ — $ 284.5 Other investments 6.8 6.8 1.7 — 5.1 Other assets 13.8 13.8 — — 13.8 Total financial assets $ 325.0 $ 305.1 $ 1.7 $ — $ 303.4 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 8.1 $ 8.2 $ — $ — $ 8.2 Funds withheld under reinsurance 374.5 374.5 374.5 — — Debt 2,129.3 1,938.7 — 1,938.7 — Total financial liabilities $ 2,511.9 $ 2,321.4 $ 374.5 $ 1,938.7 $ 8.2 December 31, 2021 Fair Value Carrying Total Level 1 Level 2 Level 3 Financial Assets Commercial mortgage loans on real estate $ 256.5 $ 266.0 $ — $ — $ 266.0 Other investments 4.2 4.2 2.0 — 2.2 Other assets 24.9 24.9 — — 24.9 Total financial assets $ 285.6 $ 295.1 $ 2.0 $ — $ 293.1 Financial Liabilities Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) (1) $ 8.5 $ 9.6 $ — $ — $ 9.6 Funds withheld under reinsurance 364.2 364.2 364.2 — — Debt 2,202.5 2,456.3 — 2,456.3 — Total financial liabilities $ 2,575.2 $ 2,830.1 $ 364.2 $ 2,456.3 $ 9.6 |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Schedule of Deferred Acquisition Costs | The following table discloses information about deferred acquisition costs as of the dates indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 Beginning balance $ 9,359.0 $ 8,136.6 $ 8,811.0 $ 7,393.5 Costs deferred 1,170.2 1,234.7 3,507.7 3,605.2 Amortization (951.4) (823.1) (2,740.9) (2,450.5) Ending balance $ 9,577.8 $ 8,548.2 $ 9,577.8 $ 8,548.2 |
Reserves (Tables)
Reserves (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 Claims and benefits payable, at beginning of period $ 1,604.8 $ 1,619.9 Less: Reinsurance ceded and other (825.9) (850.5) Net claims and benefits payable, at beginning of period 778.9 769.4 Incurred losses and loss adjustment expenses related to: Current year 1,728.0 1,714.8 Prior years 32.5 (30.6) Total incurred losses and loss adjustment expenses 1,760.5 1,684.2 Paid losses and loss adjustment expenses related to: Current year 1,106.2 1,158.2 Prior years 449.8 447.7 Total paid losses and loss adjustment expenses 1,556.0 1,605.9 Net claims and benefits payable, at end of period 983.4 847.7 Plus: Reinsurance ceded and other (1) 2,039.0 1,057.3 Claims and benefits payable, at end of period (1) $ 3,022.4 $ 1,905.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net losses on Pension Plans Accumulated Balance at June 30, 2022 $ (367.5) $ (370.1) $ 11.1 $ (95.7) $ (822.2) Change in accumulated other comprehensive income (loss) before reclassifications (51.4) (221.5) — 0.4 (272.5) Amounts reclassified from accumulated other comprehensive income (loss) — 12.2 (0.6) (1.8) 9.8 Net current-period other comprehensive income (loss) (51.4) (209.3) (0.6) (1.4) (262.7) Balance at September 30, 2022 $ (418.9) $ (579.4) $ 10.5 $ (97.1) $ (1,084.9) Three Months Ended September 30, 2021 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net losses on Pension Plans Accumulated Balance at June 30, 2021 $ (274.8) $ 974.5 $ 13.5 $ (109.2) $ 604.0 Change in accumulated other comprehensive income (loss) before reclassifications (23.4) (44.6) — 0.3 (67.7) Amounts reclassified from accumulated other comprehensive income (loss) (0.3) (618.5) (0.6) (1.0) (620.4) Net current-period other comprehensive income (loss) (23.7) (663.1) (0.6) (0.7) (688.1) Balance at September 30, 2021 $ (298.5) $ 311.4 $ 12.9 $ (109.9) $ (84.1) Nine Months Ended September 30, 2022 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net losses on Pension Plans Accumulated Balance at December 31, 2021 $ (326.9) $ 256.6 $ 12.4 $ (92.1) $ (150.0) Change in accumulated other comprehensive income (loss) before reclassifications (92.0) (874.3) — 0.4 (965.9) Amounts reclassified from accumulated other comprehensive income (loss) (1) — 38.3 (1.9) (5.4) 31.0 Net current-period other comprehensive income (loss) (92.0) (836.0) (1.9) (5.0) (934.9) Balance at September 30, 2022 $ (418.9) $ (579.4) $ 10.5 $ (97.1) $ (1,084.9) Nine Months Ended September 30, 2021 Foreign Net unrealized Net unrealized gains on derivative transactions Unamortized net losses on Pension Plans Accumulated Balance at December 31, 2020 $ (295.6) $ 1,097.6 $ 14.7 $ (106.9) $ 709.8 Change in accumulated other comprehensive income (loss) before reclassifications (2.6) (162.5) — 0.6 (164.5) Amounts reclassified from accumulated other comprehensive income (loss) (0.3) (623.7) (1.8) (3.6) (629.4) Net current-period other (2.9) (786.2) (1.8) (3.0) (793.9) Balance at September 30, 2021 $ (298.5) $ 311.4 $ 12.9 $ (109.9) $ (84.1) |
Reclassification out of Accumulated Other Comprehensive Income | The following tables summarize the reclassifications out of accumulated other comprehensive income (“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, 2022 2021 Foreign currency translation adjustment $ — $ (0.8) Underwriting, selling, general and administrative expenses — 0.5 Provision for income taxes $ — $ (0.3) Net of tax Net unrealized losses (gains) on investments $ 15.5 $ (789.6) Net realized losses (gains) on investments (3.3) 171.1 Provision for income taxes $ 12.2 $ (618.5) Net of tax Net unrealized gains on derivative transactions $ (0.7) $ (0.7) Interest expense 0.1 0.1 Provision for income taxes $ (0.6) $ (0.6) Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss $ 1.1 $ 1.8 (1) Amortization of prior service credit (3.4) (3.4) (1) Settlement loss — 0.3 (1) (2.3) (1.3) 0.5 0.3 Provision for income taxes $ (1.8) $ (1.0) Net of tax Total reclassifications for the period $ 9.8 $ (620.4) Net of tax Details about accumulated other comprehensive income components Amount reclassified from Affected line item in the Nine Months Ended September 30, 2022 2021 Foreign currency translation adjustment $ — $ (0.8) Underwriting, selling, general and administrative expenses — 0.5 Provision for income taxes $ — $ (0.3) Net of tax Net unrealized losses (gains) on investments $ 48.5 $ (796.1) Net realized losses (gains) on investments (10.2) 172.4 Provision for income taxes $ 38.3 $ (623.7) Net of tax Net unrealized gains on derivative transactions $ (2.3) $ (2.1) Interest expense 0.4 0.3 Provision for income taxes $ (1.9) $ (1.8) Net of tax Amortization of pension and postretirement unrecognized net periodic benefit cost: Amortization of net loss $ 3.3 $ 5.4 (1) Amortization of prior service credit (10.2) (10.2) (1) Settlement loss — 0.3 (1) (6.9) (4.5) 1.5 0.9 Provision for income taxes $ (5.4) $ (3.6) Net of tax Total reclassifications for the period $ 31.0 $ (629.4) Net of tax |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 performance share units (“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 the conversion of the MCPS using the if-converted method. The outstanding restricted stock units (“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, 2022 2021 2022 2021 Numerator Net income from continuing operations $ 7.3 $ 151.0 $ 208.5 $ 478.9 Less: Preferred stock dividends — — — (4.7) Net income from continuing operations attributable to common stockholders 7.3 151.0 208.5 474.2 Less: Common stock dividends paid (36.7) (38.5) (112.7) (118.5) Undistributed earnings $ (29.4) $ 112.5 $ 95.8 $ 355.7 Net income from continuing operations attributable to common stockholders $ 7.3 $ 151.0 $ 208.5 $ 474.2 Add: Net income from discontinued operations — 728.8 — 762.0 Net income attributable to common stockholders $ 7.3 $ 879.8 $ 208.5 $ 1,236.2 Denominator Weighted average common shares outstanding used in basic per common share calculations 53,717,373 59,126,313 54,693,799 59,769,690 Incremental common shares from: PSUs 345,887 352,918 425,887 371,793 ESPP 3,345 233 5,164 — MCPS — — — 713,838 Weighted average common shares outstanding used in diluted per common share calculations 54,066,605 59,479,464 55,124,850 60,855,321 Earnings per common share - Basic Distributed earnings $ 0.68 $ 0.65 $ 2.06 $ 1.98 Undistributed earnings (0.54) 1.91 1.75 5.96 Net income from continuing operations 0.14 2.56 3.81 7.94 Net income from discontinued operations — 12.32 — 12.74 Net income attributable to common stockholders $ 0.14 $ 14.88 $ 3.81 $ 20.68 Earnings per common share - Diluted Distributed earnings $ 0.68 $ 0.65 $ 2.04 $ 1.95 Undistributed earnings (0.54) 1.89 1.74 5.92 Net income from continuing operations 0.14 2.54 3.78 7.87 Net income from discontinued operations — 12.25 — 12.52 Net income attributable to common stockholders $ 0.14 $ 14.79 $ 3.78 $ 20.39 |
Retirement and Other Employee_2
Retirement and Other Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and 2021: 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, 2022 2021 2022 2021 2022 2021 Interest cost $ 4.1 $ 3.5 $ 0.3 $ 0.3 $ — $ 0.1 Expected return on plan assets (6.9) (6.8) — — (0.3) (0.4) Amortization of prior service credit — — — — (3.4) (3.4) Amortization of net loss (gain) 0.8 1.2 0.5 0.8 (0.2) (0.2) Settlement loss — — 1.8 0.3 — — Net periodic benefit cost $ (2.0) $ (2.1) $ 2.6 $ 1.4 $ (3.9) $ (3.9) 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, 2022 2021 2022 2021 2022 2021 Interest cost $ 12.5 $ 10.5 $ 1.0 $ 0.9 $ 0.1 $ 0.1 Expected return on plan assets (20.7) (20.6) — — (1.0) (1.2) Amortization of prior service credit — — — — (10.2) (10.2) Amortization of net loss (gain) 2.3 3.6 1.6 2.4 (0.6) (0.4) Settlement loss — — 1.8 0.3 — — Net periodic benefit cost $ (5.9) $ (6.5) $ 4.4 $ 3.6 $ (11.7) $ (11.7) |
Revision of Prior Period Fina_2
Revision of Prior Period Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections | Revised Consolidated Balance Sheet As of December 31, 2021 As Reported Adjustment As Revised Reinsurance recoverables $ 6,178.9 $ 2.3 $ 6,181.2 Other Assets 692.1 6.8 698.9 Total assets 33,911.5 9.1 33,920.6 Claims and benefits payable 1,595.9 8.9 1,604.8 Reinsurance balances payable 420.4 25.8 446.2 Total liabilities 28,421.8 34.7 28,456.5 Retained Earnings 4,066.8 (25.6) 4,041.2 Total Assurant, Inc. stockholders’ equity 5,489.7 (25.6) 5,464.1 Total equity 5,489.7 (25.6) 5,464.1 Total liabilities and equity 33,911.5 9.1 33,920.6 Revised Consolidated Statements of Operations Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 As Reported Adjustment As Revised As Reported Adjustment As Revised Policyholder benefits $ 614.2 $ 3.2 $ 617.4 $ 1,681.2 $ 3.0 $ 1,684.2 Underwriting, general and administrative expenses 818.3 0.1 818.4 2,301.2 5.5 2,306.7 Total benefits, losses and expenses 2,446.3 3.3 2,449.6 6,991.5 8.5 7,000.0 Income from continuing operations before income tax expense 191.5 (3.3) 188.2 621.2 (8.5) 612.7 Income tax expense 37.9 (0.7) 37.2 134.4 (0.6) 133.8 Net income from continuing operations 153.6 (2.6) 151.0 486.8 (7.9) 478.9 Net income 882.4 (2.6) 879.8 1,248.8 (7.9) 1,240.9 Net income attributable to stockholders 882.4 (2.6) 879.8 1,248.8 (7.9) 1,240.9 Net income attributable to common stockholders 882.4 (2.6) 879.8 1,244.1 (7.9) 1,236.2 Basic earnings per share from continuing operations 2.60 (0.04) 2.56 8.07 (0.13) 7.94 Basic earnings per share attributable to common stockholders 14.92 (0.04) 14.88 20.81 (0.13) 20.68 Diluted earnings per share from continuing operations 2.58 (0.04) 2.54 8.00 (0.13) 7.87 Diluted earnings per share attributable to common stockholders 14.83 (0.04) 14.79 20.52 (0.13) 20.39 Revised Consolidated Statements of Comprehensive Income Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 As Reported Adjustment As Revised As Reported Adjustment As Revised Net Income $ 882.4 $ (2.6) $ 879.8 $ 1,248.8 $ (7.9) $ 1,240.9 Total comprehensive income 194.3 (2.6) 191.7 454.9 (7.9) 447.0 Total comprehensive income attributable to stockholders 194.3 (2.6) 191.7 454.9 (7.9) 447.0 Revised Consolidated Statements of Changes in Equity Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 As Reported Adjustment As Revised As Reported Adjustment As Revised Beginning equity $ 5,908.4 $ (20.5) $ 5,887.9 $ 5,954.8 $ (15.2) $ 5,939.6 Net Income 882.4 (2.6) 879.8 1,248.8 (7.9) 1,240.9 Ending equity 5,744.4 (23.1) 5,721.3 5,744.4 (23.1) 5,721.3 Revised Consolidated Statement of Cash Flows Nine Months Ended September 30, 2021 As Reported Adjustment As Revised Operating activities Net Income Attributable to Stockholders $ 1,248.8 $ (7.9) $ 1,240.9 Change in insurance policy reserves and expenses 1,427.8 (2.0) 1,425.8 Change in reinsurance recoverable (517.7) (1.0) (518.7) Change in reinsurance balance payable 31.2 6.0 37.2 Change in deferred acquisition costs and value of business acquired (712.1) 5.5 (706.6) Change in taxes receivable (122.7) (0.7) (123.4) Other (17.1) 0.1 (17.0) Net cash provided by operating activities 527.0 — 527.0 |
Nature of Operations (Details)
Nature of Operations (Details) | 9 Months Ended |
Sep. 30, 2022 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Dispositions - Narrative (Detai
Dispositions - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Aug. 02, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Future policy benefits and expenses | $ 406.7 | $ 413.2 | |||
Reinsurance recoverables, including reinsurance premium paid | 7,561.8 | 6,181.2 | |||
Other Investments | 504.4 | 506.3 | |||
Claims and benefits payable | $ 3,022.4 | 1,604.8 | $ 1,905 | $ 1,619.9 | |
Global Preneed | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sale of discontinued operation, aggregated sale price | $ 1,340 | ||||
John Alden Life Insurance Company | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Future policy benefits and expenses | 915.8 | ||||
Reinsurance recoverables, including reinsurance premium paid | 881.6 | ||||
Other Investments | 159.6 | ||||
Claims and benefits payable | $ 117.2 |
Dispositions - Schedule of Inco
Dispositions - Schedule of Income (Loss) from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues | ||||
Net earned premiums | $ 2,197.1 | $ 2,140.1 | $ 6,502.4 | $ 6,396.3 |
Fees and other income | 294.6 | 309.6 | 942.2 | 858 |
Net investment income | 83.5 | 76 | 261.8 | 235.2 |
Net realized (losses) gains on investments and fair value changes to equity securities | (27.4) | 112.1 | (166.2) | 123.2 |
Total revenues | 2,547.8 | 2,637.8 | 7,540.2 | 7,612.7 |
Benefits, losses and expenses | ||||
Policyholder benefits | 670.5 | 617.4 | 1,760.5 | 1,684.2 |
Underwriting, selling, general and administrative expenses | 1,842.5 | 1,784 | 5,444.8 | 5,210.4 |
Total benefits, losses and expenses | $ 2,539.3 | 2,449.6 | $ 7,286.6 | 7,000 |
Global Preneed | Discontinued Operations, Held-for-sale | ||||
Revenues | ||||
Net earned premiums | 6.1 | 42.6 | ||
Fees and other income | 13.6 | 91 | ||
Net investment income | 23.7 | 168.4 | ||
Net realized (losses) gains on investments and fair value changes to equity securities | 0.5 | 4.2 | ||
Gain (loss) on disposal of businesses | 926.4 | 920.1 | ||
Total revenues | 970.3 | 1,226.3 | ||
Benefits, losses and expenses | ||||
Policyholder benefits | 24.6 | 172.7 | ||
Underwriting, selling, general and administrative expenses | 12.8 | 85.2 | ||
Total benefits, losses and expenses | 37.4 | 257.9 | ||
Income from discontinued operations before income taxes | 932.9 | 968.4 | ||
Benefit for income taxes | 204.1 | 206.4 | ||
Net income from discontinued operations (Note 4) | $ 728.8 | $ 762 |
Segment Information - Narrative
Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 3 | |||
Non-core Operations | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | $ 17.2 | $ 17.2 | $ 44.7 | $ 49.1 |
Sharing Economy and Small Commercial Businesses | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | (3.6) | (6.1) | (46.8) | (0.6) |
Legacy Long Duration Life Insurance Policies | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA | $ 0.7 | $ (2.1) | $ 1.7 | $ (2) |
Segment Information - Schedule
Segment Information - Schedule of Segment Adjusted EBITDA Disclosure (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reconciling items to consolidated net income from continuing operations: | ||||
Interest expense | $ (26.3) | $ (27.5) | $ (80.4) | $ (84.7) |
Net realized (losses) gains on investments and fair value changes to equity securities | (27.4) | 112.1 | (166.2) | 123.2 |
Loss on extinguishment of debt | 0 | (20.7) | (0.9) | (20.7) |
Income from continuing operations before income tax expense | 8.5 | 188.2 | 253.6 | 612.7 |
Income tax expense | 1.2 | 37.2 | 45.1 | 133.8 |
Net income from continuing operations | 7.3 | 151 | 208.5 | 478.9 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA by segment: | (24.9) | (23) | (72) | (67.8) |
Segment Reconciling Items | ||||
Reconciling items to consolidated net income from continuing operations: | ||||
Interest expense | (26.3) | (27.5) | (80.4) | (84.7) |
Depreciation expense | (22.6) | (18.1) | (64.7) | (52.4) |
Amortization of purchased intangible assets | (17.3) | (15.7) | (51.9) | (50) |
Net realized (losses) gains on investments and fair value changes to equity securities | (27.4) | 112.1 | (166.2) | 123.2 |
COVID-19 direct and incremental expenses | (1.1) | (2) | (3.6) | (7.2) |
Loss on extinguishment of debt | 0 | (20.7) | (0.9) | (20.7) |
Non-core operations | (2.9) | (8.2) | (45.1) | (2.6) |
Other adjustments | (9.9) | (0.2) | (15.6) | (6.3) |
Total reconciling items | (107.5) | 19.7 | (428.4) | (100.7) |
Global Lifestyle | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA by segment: | 165.9 | 176.3 | 587.3 | 546 |
Global Housing | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Adjusted EBITDA by segment: | $ (25) | $ 15.2 | $ 166.7 | $ 235.2 |
Segment Information - Schedul_2
Segment Information - Schedule of Net Earned Premiums, Fees and Other Income by Segment (Details) - Operating Segments - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Global Lifestyle | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | $ 1,990.3 | $ 1,961.2 | $ 5,933.5 | $ 5,757 |
Global Lifestyle | Connected Living | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | 1,046.8 | 1,094.1 | 3,182 | 3,221.9 |
Global Lifestyle | Global Automotive | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | 943.5 | 867.1 | 2,751.5 | 2,535.1 |
Global Housing | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | 484.1 | 471.1 | 1,465.8 | 1,447.6 |
Global Housing | Lender-placed Insurance | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | 262.2 | 256.2 | 801.9 | 790.9 |
Global Housing | Multifamily Housing | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | 119.9 | 121.7 | 362 | 361.2 |
Global Housing | Specialty and Other | ||||
Segment Reporting Information [Line Items] | ||||
Net earned premiums | $ 102 | $ 93.2 | $ 301.9 | $ 295.5 |
Segment Information - Schedul_3
Segment Information - Schedule of Asset by Segment (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 33,245.7 | $ 33,920.6 |
Non-core Operations | ||
Segment Reporting Information [Line Items] | ||
Total assets | 385 | 326.3 |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,260 | 3,792.4 |
Global Lifestyle | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 26,617.9 | 26,120.9 |
Global Housing | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 5,367.8 | $ 4,007.3 |
Contract Revenues - Narrative (
Contract Revenues - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Global Lifestyle | |||||
Disaggregation of Revenue [Line Items] | |||||
Disaggregated fee revenues | $ 257.9 | $ 264 | $ 825.5 | $ 730.1 | |
Global Housing | |||||
Disaggregation of Revenue [Line Items] | |||||
Disaggregated fee revenues | 19.8 | 22.4 | 63.4 | 71.8 | |
Service contracts and sales | |||||
Disaggregation of Revenue [Line Items] | |||||
Receivables from contracts with customers | 265.9 | 265.9 | $ 313.7 | ||
Unearned revenue from contracts with customers | 173.7 | 173.7 | 191.5 | ||
Contract with customer, liability, unearned revenue | 20 | $ 12.5 | 69 | $ 47.6 | |
Deferred upfront commissions and other costs | $ 62.3 | $ 62.3 | $ 93 |
Investments - Amortized Cost, G
Investments - Amortized Cost, Gross Unrealized Gains and Losses, Fair Value and OTTI (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | $ 6,863.6 | $ 6,903.9 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 17.1 | 346.6 |
Fixed maturity securities, gross unrealized losses | (742.8) | (35.2) |
Fixed maturity securities, fair value | 6,137.9 | 7,215.3 |
U.S. government and government agencies and authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 102 | 83 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 0.3 | 2.1 |
Fixed maturity securities, gross unrealized losses | (7.1) | (0.1) |
Fixed maturity securities, fair value | 95.2 | 85 |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 160.8 | 142.2 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 0.9 | 7 |
Fixed maturity securities, gross unrealized losses | (16.6) | (0.7) |
Fixed maturity securities, fair value | 145.1 | 148.5 |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 403.1 | 436 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 0.6 | 5.9 |
Fixed maturity securities, gross unrealized losses | (21) | (4.2) |
Fixed maturity securities, fair value | 382.7 | 437.7 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 670.1 | 411.1 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 3 | 14.2 |
Fixed maturity securities, gross unrealized losses | (46.9) | (2.3) |
Fixed maturity securities, fair value | 626.2 | 423 |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 461.7 | 466.7 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 0 | 10.3 |
Fixed maturity securities, gross unrealized losses | (50.5) | (3.3) |
Fixed maturity securities, fair value | 411.2 | 473.7 |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 515.5 | 578.4 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 0.5 | 25.2 |
Fixed maturity securities, gross unrealized losses | (57.7) | (1.7) |
Fixed maturity securities, fair value | 458.3 | 601.9 |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 3,253 | 3,581.2 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 9.9 | 235.9 |
Fixed maturity securities, gross unrealized losses | (374.1) | (14) |
Fixed maturity securities, fair value | 2,888.8 | 3,803.1 |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities available for sale, amortized cost | 1,297.4 | 1,205.3 |
Fixed maturity securities available for sale, allowances for credit losses | 0 | 0 |
Fixed maturity securities, gross unrealized gains | 1.9 | 46 |
Fixed maturity securities, gross unrealized losses | (168.9) | (8.9) |
Fixed maturity securities, fair value | $ 1,130.4 | $ 1,242.4 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 USD ($) investment | Dec. 31, 2021 USD ($) investment | |
Investment [Line Items] | ||
Percentage of securities representing gross unrealized losses (as a percent) | 13% | 2% |
Percentage of gross unrealized losses in a continuous loss position less than twelve months (as a percent) | 76% | 94% |
Individual securities comprising total gross unrealized losses | investment | 3,874 | 1,202 |
Percentage of residential mortgage-backed holdings exposure to sub-prime mortgage collateral (as a percent) | 36% | |
Minimum | ||
Investment [Line Items] | ||
Total | $ 0.1 | $ 0.1 |
Maximum | ||
Investment [Line Items] | ||
Total | $ 9.5 | $ 9.6 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Fixed Maturity Securities by Contractual Maturity (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Cost or Amortized Cost | ||
Due in one year or less, cost or amortized cost | $ 182.5 | |
Due after one year through five years, cost or amortized cost | 1,697.8 | |
Due after five years through ten years, cost or amortized cost | 2,241.6 | |
Due after ten years, cost or amortized cost | 1,094.4 | |
Total, cost or amortized cost | 5,216.3 | |
Fixed maturity securities, cost or amortized cost | 6,863.6 | $ 6,903.9 |
Fair Value | ||
Due in one year or less, fair value | 181.6 | |
Due after one year through five years, fair value | 1,614.2 | |
Due after five years through ten years, fair value | 1,973.5 | |
Due after ten years, fair value | 872.9 | |
Total, fair value | 4,642.2 | |
Fixed maturity securities, fair value | 6,137.9 | 7,215.3 |
Commercial mortgage-backed | ||
Cost or Amortized Cost | ||
Cost or amortized cost | 461.7 | |
Fair Value | ||
Fair value | 411.2 | |
Residential mortgage-backed | ||
Cost or Amortized Cost | ||
Cost or amortized cost | 515.5 | |
Fair Value | ||
Fair value | 458.3 | |
Asset-backed | ||
Cost or Amortized Cost | ||
Cost or amortized cost | 670.1 | |
Fixed maturity securities, cost or amortized cost | 670.1 | 411.1 |
Fair Value | ||
Fair value | 626.2 | |
Fixed maturity securities, fair value | $ 626.2 | $ 423 |
Investments - Net Realized Gain
Investments - Net Realized Gains (Losses), Including Impairment, Recognized in the Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities: | ||||
Total net realized (losses) gains on investments related to sales and other and fair value changes to equity securities | $ (27.4) | $ 112.1 | $ (164.1) | $ 123 |
Net realized (losses) gains related to impairments: | ||||
Net realized losses related to impairments | 0 | 0 | (2.1) | 0.2 |
Other investments | 0 | 0 | 0 | (1) |
Total net realized (losses) gains on investments and fair value changes to equity securities | (27.4) | 112.1 | (166.2) | 123.2 |
Upward adjustment for equity securities under alternative measurement | 0 | 23 | 19.5 | 25.1 |
Fixed maturity securities | ||||
Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities: | ||||
Total net realized (losses) gains on investments related to sales and other and fair value changes to equity securities | (21.9) | 16.1 | (63) | 19.3 |
Net realized (losses) gains related to impairments: | ||||
Net realized losses related to impairments | 0 | 0 | (1.6) | 1.2 |
Equity securities | ||||
Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities: | ||||
Total net realized (losses) gains on investments related to sales and other and fair value changes to equity securities | (5.2) | 95.1 | (102.4) | 100.6 |
Commercial mortgage loans on real estate | ||||
Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities: | ||||
Total net realized (losses) gains on investments related to sales and other and fair value changes to equity securities | (0.2) | 0.5 | 0 | 0.7 |
Other investments | ||||
Net realized (losses) gains on investments related to sales and other and fair value changes to equity securities: | ||||
Total net realized (losses) gains on investments related to sales and other and fair value changes to equity securities | (0.1) | 0.4 | 1.3 | 2.4 |
Net realized (losses) gains related to impairments: | ||||
Other investments | $ 0 | $ 0 | $ (0.5) | $ (1) |
Investments - Unrealized Gains
Investments - Unrealized Gains on Equity Securities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Net (losses) gains recognized on equity securities | $ (5.2) | $ 95.1 | $ (102.4) | $ 100.6 | |
Less: Net realized gains related to sales of equity securities | (0.2) | 1.1 | 20 | 2.1 | |
Total fair value changes to equity securities held | (5) | $ 94 | (122.4) | $ 98.5 | |
Gain (Loss) on Securities [Line Items] | |||||
Equity securities at fair value | 302.6 | 302.6 | $ 445.7 | ||
Four Equity Positions that Went Public | |||||
Gain (Loss) on Securities [Line Items] | |||||
Equity securities, unrealized gain | 0.6 | 78.5 | |||
Equity securities at fair value | $ 24.4 | $ 24.4 |
Investments - Equity Securities
Investments - Equity Securities without Readily Determinable Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments, All Other Investments [Abstract] | ||
Initial cost | $ 86 | $ 74.4 |
Cumulative upward adjustments | 58.6 | 42.7 |
Cumulative downward adjustments (including impairments) | (15.4) | (15.4) |
Carrying value | $ 129.2 | $ 101.7 |
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, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | $ 5,119.7 | $ 2,003.9 |
Fixed maturity securities, less than 12 months, unrealized losses | (568) | (33.1) |
Fixed maturity securities, 12 months or more, fair value | 618.6 | 47.7 |
Fixed maturity securities, 12 months or more, unrealized losses | (174.8) | (2.1) |
Fixed maturity securities, total, fair value | 5,738.3 | 2,051.6 |
Fixed maturity securities, unrealized losses | (742.8) | (35.2) |
U.S. government and government agencies and authorities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 87.8 | 31.5 |
Fixed maturity securities, less than 12 months, unrealized losses | (6.6) | (0.1) |
Fixed maturity securities, 12 months or more, fair value | 4.1 | 0 |
Fixed maturity securities, 12 months or more, unrealized losses | (0.5) | 0 |
Fixed maturity securities, total, fair value | 91.9 | 31.5 |
Fixed maturity securities, unrealized losses | (7.1) | (0.1) |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 96.4 | 48.1 |
Fixed maturity securities, less than 12 months, unrealized losses | (10.9) | (0.7) |
Fixed maturity securities, 12 months or more, fair value | 21.8 | 0 |
Fixed maturity securities, 12 months or more, unrealized losses | (5.7) | 0 |
Fixed maturity securities, total, fair value | 118.2 | 48.1 |
Fixed maturity securities, unrealized losses | (16.6) | (0.7) |
Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 306.9 | 216 |
Fixed maturity securities, less than 12 months, unrealized losses | (17.9) | (4.1) |
Fixed maturity securities, 12 months or more, fair value | 26.8 | 4 |
Fixed maturity securities, 12 months or more, unrealized losses | (3.1) | (0.1) |
Fixed maturity securities, total, fair value | 333.7 | 220 |
Fixed maturity securities, unrealized losses | (21) | (4.2) |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 474.3 | 257.7 |
Fixed maturity securities, less than 12 months, unrealized losses | (38.5) | (2.1) |
Fixed maturity securities, 12 months or more, fair value | 76.7 | 9.8 |
Fixed maturity securities, 12 months or more, unrealized losses | (8.4) | (0.2) |
Fixed maturity securities, total, fair value | 551 | 267.5 |
Fixed maturity securities, unrealized losses | (46.9) | (2.3) |
Commercial mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 337.9 | 274.8 |
Fixed maturity securities, less than 12 months, unrealized losses | (35.5) | (2.9) |
Fixed maturity securities, 12 months or more, fair value | 73.3 | 2 |
Fixed maturity securities, 12 months or more, unrealized losses | (15) | (0.4) |
Fixed maturity securities, total, fair value | 411.2 | 276.8 |
Fixed maturity securities, unrealized losses | (50.5) | (3.3) |
Residential mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 413.2 | 94 |
Fixed maturity securities, less than 12 months, unrealized losses | (45.2) | (1.5) |
Fixed maturity securities, 12 months or more, fair value | 32.3 | 10 |
Fixed maturity securities, 12 months or more, unrealized losses | (12.5) | (0.2) |
Fixed maturity securities, total, fair value | 445.5 | 104 |
Fixed maturity securities, unrealized losses | (57.7) | (1.7) |
U.S. corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 2,460.4 | 687.8 |
Fixed maturity securities, less than 12 months, unrealized losses | (295.9) | (13.1) |
Fixed maturity securities, 12 months or more, fair value | 225.8 | 15.2 |
Fixed maturity securities, 12 months or more, unrealized losses | (78.2) | (0.9) |
Fixed maturity securities, total, fair value | 2,686.2 | 703 |
Fixed maturity securities, unrealized losses | (374.1) | (14) |
Foreign corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, less than 12 months, fair value | 942.8 | 394 |
Fixed maturity securities, less than 12 months, unrealized losses | (117.5) | (8.6) |
Fixed maturity securities, 12 months or more, fair value | 157.8 | 6.7 |
Fixed maturity securities, 12 months or more, unrealized losses | (51.4) | (0.3) |
Fixed maturity securities, total, fair value | 1,100.6 | 400.7 |
Fixed maturity securities, unrealized losses | $ (168.9) | $ (8.9) |
Investments - Credit Quality In
Investments - Credit Quality Indicators (Details) - Commercial Portfolio Segment $ in Millions | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Greater than 2.0 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated current year | $ 24 | $ 59.3 |
Financing receivable, originated year one | 57.9 | 5.6 |
Financing receivable, originated year two | 2.7 | 0 |
Financing receivable, originated year three | 0 | 0 |
Financing receivable, originated year four | 0 | 0 |
Prior | 56.8 | 70.5 |
Financing receivable, before allowance for credit loss | $ 141.4 | $ 135.4 |
Percentage of financing receivable, before allowance for credit loss | 0.463 | 0.526 |
1.5 to 2.0 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated current year | $ 26.9 | $ 34.1 |
Financing receivable, originated year one | 37.1 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 4.7 |
Financing receivable, originated year four | 4.6 | 4 |
Prior | 19.6 | 17.5 |
Financing receivable, before allowance for credit loss | $ 88.2 | $ 60.3 |
Percentage of financing receivable, before allowance for credit loss | 0.289 | 0.234 |
1.0 to 1.5 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated current year | $ 23.9 | $ 40.1 |
Financing receivable, originated year one | 39.6 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 0 |
Financing receivable, originated year four | 0 | 0 |
Prior | 7.1 | 9.9 |
Financing receivable, before allowance for credit loss | $ 70.6 | $ 50 |
Percentage of financing receivable, before allowance for credit loss | 0.231 | 0.194 |
Less than 1.0 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated current year | $ 0 | $ 0 |
Financing receivable, originated year one | 0 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 0 |
Financing receivable, originated year four | 0 | 5.8 |
Prior | 5.3 | 6.1 |
Financing receivable, before allowance for credit loss | $ 5.3 | $ 11.9 |
Percentage of financing receivable, before allowance for credit loss | 0.017 | 0.046 |
Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated current year | $ 74.8 | $ 133.5 |
Financing receivable, originated year one | 134.6 | 5.6 |
Financing receivable, originated year two | 2.7 | 0 |
Financing receivable, originated year three | 0 | 4.7 |
Financing receivable, originated year four | 4.6 | 9.8 |
Prior | 88.8 | 104 |
Financing receivable, before allowance for credit loss | $ 305.5 | $ 257.6 |
Percentage of financing receivable, before allowance for credit loss | 1 | 1 |
70% and less | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated current year | $ 43.9 | $ 71.7 |
Financing receivable, originated year one | 68.8 | 5.6 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 0 |
Financing receivable, originated year four | 0 | 4 |
Prior | 85.9 | 99.8 |
Financing receivable, before allowance for credit loss | $ 198.6 | $ 181.1 |
Percentage of financing receivable, before allowance for credit loss | 0.650 | 0.703 |
71% to 80% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated current year | $ 30.9 | $ 61.8 |
Financing receivable, originated year one | 44.8 | 0 |
Financing receivable, originated year two | 2.7 | 0 |
Financing receivable, originated year three | 0 | 4.7 |
Financing receivable, originated year four | 4.6 | 0 |
Prior | 1 | 1 |
Financing receivable, before allowance for credit loss | $ 84 | $ 67.5 |
Percentage of financing receivable, before allowance for credit loss | 0.275 | 0.262 |
81% to 95% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated current year | $ 0 | $ 0 |
Financing receivable, originated year one | 21 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 0 |
Financing receivable, originated year four | 0 | 0 |
Prior | 0 | 1.1 |
Financing receivable, before allowance for credit loss | $ 21 | $ 1.1 |
Percentage of financing receivable, before allowance for credit loss | 0.069 | 0.004 |
Greater than 95% | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated current year | $ 0 | $ 0 |
Financing receivable, originated year one | 0 | 0 |
Financing receivable, originated year two | 0 | 0 |
Financing receivable, originated year three | 0 | 0 |
Financing receivable, originated year four | 0 | 5.8 |
Prior | 1.9 | 2.1 |
Financing receivable, before allowance for credit loss | $ 1.9 | $ 7.9 |
Percentage of financing receivable, before allowance for credit loss | 0.006 | 0.031 |
Total | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Financing receivable, originated current year | $ 74.8 | $ 133.5 |
Financing receivable, originated year one | 134.6 | 5.6 |
Financing receivable, originated year two | 2.7 | 0 |
Financing receivable, originated year three | 0 | 4.7 |
Financing receivable, originated year four | 4.6 | 9.8 |
Prior | 88.8 | 104 |
Financing receivable, before allowance for credit loss | $ 305.5 | $ 257.6 |
Percentage of financing receivable, before allowance for credit loss | 1 | 1 |
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, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | $ 7,405.9 | $ 9,198.2 |
Other liabilities | 64.4 | 76.4 |
Liabilities related to separate accounts | 9.8 | 11.8 |
Total financial liabilities | 74.2 | 88.2 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 888.5 | 1,519.9 |
Other liabilities | 56.1 | 72.4 |
Liabilities related to separate accounts | 4.5 | 7.7 |
Total financial liabilities | 60.6 | 80.1 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 6,453.2 | 7,536.2 |
Other liabilities | 0 | 0 |
Liabilities related to separate accounts | 5.3 | 4.1 |
Total financial liabilities | 5.3 | 4.1 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 64.2 | 142.1 |
Other liabilities | 8.3 | 4 |
Liabilities related to separate accounts | 0 | 0 |
Total financial liabilities | 8.3 | 4 |
U.S. government and government agencies and authorities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 95.2 | 85 |
U.S. government and government agencies and authorities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total 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] | ||
Total financial assets | 95.2 | 85 |
U.S. government and government agencies and authorities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 145.1 | 148.5 |
States, municipalities and political subdivisions | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
States, municipalities and political subdivisions | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 145.1 | 148.5 |
States, municipalities and political subdivisions | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 382.7 | 437.7 |
Foreign governments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Foreign governments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 382.7 | 437.7 |
Foreign governments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 626.2 | 423 |
Asset-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Asset-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 569.3 | 423 |
Asset-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 56.9 | 0 |
Commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 411.2 | 473.7 |
Commercial mortgage-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Commercial mortgage-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 411.2 | 473.7 |
Commercial mortgage-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Residential mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 458.3 | 601.9 |
Residential mortgage-backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Residential mortgage-backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 458.3 | 601.9 |
Residential mortgage-backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
U.S. corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 2,888.8 | 3,803.1 |
U.S. corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
U.S. corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 2,885 | 3,799.7 |
U.S. corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 3.8 | 3.4 |
Foreign corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 1,130.4 | 1,242.4 |
Foreign corporate | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Foreign corporate | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 1,127.3 | 1,238.8 |
Foreign corporate | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 3.1 | 3.6 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 32.9 | 33.3 |
Mutual funds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 32.9 | 33.3 |
Mutual funds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Mutual funds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Common Stock | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 37.4 | 151.1 |
Common Stock | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 36.5 | 15.5 |
Common Stock | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0.7 | 0.7 |
Common Stock | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0.2 | 134.9 |
Non-redeemable preferred stocks | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 232.3 | 261.3 |
Non-redeemable preferred stocks | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Non-redeemable preferred stocks | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 232.3 | 261.3 |
Non-redeemable preferred stocks | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 228.1 | 207.2 |
Short-term investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 150 | 200.1 |
Short-term investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 78.1 | 7.1 |
Short-term investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 56.3 | 72.6 |
Other investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 56.1 | 72.4 |
Other investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Other investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0.2 | 0.2 |
Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 667 | 1,243.9 |
Cash equivalents | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 608.5 | 1,190.9 |
Cash equivalents | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 58.5 | 53 |
Cash equivalents | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 4.2 | 1.7 |
Other assets | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Other assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 4.2 | 1.7 |
Other assets | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 0 | 0 |
Assets held in separate accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 9.8 | 11.8 |
Assets held in separate accounts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 4.5 | 7.7 |
Assets held in separate accounts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets | 5.3 | 4.1 |
Assets held in separate accounts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total 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, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | $ 7,405.9 | $ 9,198.2 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | 888.5 | 1,519.9 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | 6,453.2 | 7,536.2 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | 64.2 | 142.1 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 304.4 | 256.5 |
Other investments | 6.8 | 4.2 |
Other assets | 13.8 | 24.9 |
Total financial assets | 325 | 285.6 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 8.1 | 8.5 |
Funds withheld under reinsurance | 374.5 | 364.2 |
Debt | 2,129.3 | 2,202.5 |
Total financial liabilities | 2,511.9 | 2,575.2 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 284.5 | 266 |
Other investments | 6.8 | 4.2 |
Other assets | 13.8 | 24.9 |
Total financial assets | 305.1 | 295.1 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 8.2 | 9.6 |
Funds withheld under reinsurance | 374.5 | 364.2 |
Debt | 1,938.7 | 2,456.3 |
Total financial liabilities | 2,321.4 | 2,830.1 |
Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 0 | 0 |
Other investments | 1.7 | 2 |
Other assets | 0 | 0 |
Total financial assets | 1.7 | 2 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 0 | 0 |
Funds withheld under reinsurance | 374.5 | 364.2 |
Debt | 0 | 0 |
Total financial liabilities | 374.5 | 364.2 |
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 | 1,938.7 | 2,456.3 |
Total financial liabilities | 1,938.7 | 2,456.3 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans on real estate | 284.5 | 266 |
Other investments | 5.1 | 2.2 |
Other assets | 13.8 | 24.9 |
Total financial assets | 303.4 | 293.1 |
Policy reserves under investment products (Individual and group annuities, subject to discretionary withdrawal) | 8.2 | 9.6 |
Funds withheld under reinsurance | 0 | 0 |
Debt | 0 | 0 |
Total financial liabilities | $ 8.2 | $ 9.6 |
Deferred Acquisition Costs - Sc
Deferred Acquisition Costs - Schedule of Deferred Acquisition Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Beginning balance | $ 9,359 | $ 8,136.6 | $ 8,811 | $ 7,393.5 |
Costs deferred | 1,170.2 | 1,234.7 | 3,507.7 | 3,605.2 |
Amortization | (951.4) | (823.1) | (2,740.9) | (2,450.5) |
Ending balance | $ 9,577.8 | $ 8,548.2 | $ 9,577.8 | $ 8,548.2 |
Reserves - Roll Forward of Clai
Reserves - Roll Forward of Claims and Benefits Payable (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Claims and benefits payable, at beginning of period | $ 1,604.8 | $ 1,619.9 |
Less: Reinsurance ceded and other | (825.9) | (850.5) |
Net claims and benefits payable, at beginning of period | 778.9 | 769.4 |
Incurred losses and loss adjustment expenses related to: | ||
Current year | 1,728 | 1,714.8 |
Prior years | 32.5 | (30.6) |
Total incurred losses and loss adjustment expenses | 1,760.5 | 1,684.2 |
Paid losses and loss adjustment expenses related to: | ||
Current year | 1,106.2 | 1,158.2 |
Prior years | 449.8 | 447.7 |
Total paid losses and loss adjustment expenses | 1,556 | 1,605.9 |
Net claims and benefits payable, at end of period | 983.4 | 847.7 |
Plus: Reinsurance ceded and other | 2,039 | 1,057.3 |
Claims and benefits payable, at end of period | 3,022.4 | 1,905 |
Ceded to U.S. Government | Not Rated | ||
Paid losses and loss adjustment expenses related to: | ||
Reinsurance recoverables | $ 960.4 | $ 221.6 |
Reserves - Narrative (Details)
Reserves - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | $ (32.5) | $ 30.6 |
Sharing Economy and Small Commercial Businesses | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | (57.1) | (11) |
Sharing Economy | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | (45.2) | |
Small Commercial | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | (11.9) | |
Global Lifestyle | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | 42.3 | 34.1 |
Global Housing | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | (22.8) | 0.6 |
Global Housing | Prior Catastrophe Event | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | (11.7) | |
Global Housing | Non-catastrophe Losses | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | (11.1) | |
Other Segments | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Favorable (unfavorable) prior year development | $ 5.1 | $ 6.9 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Mar. 31, 2018 | |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 0 | $ 20.7 | $ 0.9 | $ 20.7 | ||
Senior Notes 2023 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption of debt, amount | $ 75 | |||||
Debt issuance amount | $ 300 | |||||
Interest rate | 4.20% | 4.20% | ||||
Loss on extinguishment of debt | $ 0.9 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 5,464.1 | |||
Change in accumulated other comprehensive income (loss) before reclassifications | $ (272.5) | $ (67.7) | (965.9) | $ (164.5) |
Amounts reclassified from accumulated other comprehensive income (loss) | 9.8 | (620.4) | 31 | (629.4) |
Total other comprehensive loss | (262.7) | (688.1) | (934.9) | (793.9) |
Ending balance | 4,098.9 | 4,098.9 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (822.2) | 604 | (150) | 709.8 |
Total other comprehensive loss | (262.7) | (688.1) | (934.9) | (793.9) |
Ending balance | (1,084.9) | (84.1) | (1,084.9) | (84.1) |
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (367.5) | (274.8) | (326.9) | (295.6) |
Change in accumulated other comprehensive income (loss) before reclassifications | (51.4) | (23.4) | (92) | (2.6) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | (0.3) | 0 | (0.3) |
Total other comprehensive loss | (51.4) | (23.7) | (92) | (2.9) |
Ending balance | (418.9) | (298.5) | (418.9) | (298.5) |
Net unrealized gains (losses) on securities | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (370.1) | 974.5 | 256.6 | 1,097.6 |
Change in accumulated other comprehensive income (loss) before reclassifications | (221.5) | (44.6) | (874.3) | (162.5) |
Amounts reclassified from accumulated other comprehensive income (loss) | 12.2 | (618.5) | 38.3 | (623.7) |
Total other comprehensive loss | (209.3) | (663.1) | (836) | (786.2) |
Ending balance | (579.4) | 311.4 | (579.4) | 311.4 |
Net unrealized gains on derivative transactions | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 11.1 | 13.5 | 12.4 | 14.7 |
Change in accumulated other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | (0.6) | (0.6) | (1.9) | (1.8) |
Total other comprehensive loss | (0.6) | (0.6) | (1.9) | (1.8) |
Ending balance | 10.5 | 12.9 | 10.5 | 12.9 |
Unamortized net losses on Pension Plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (95.7) | (109.2) | (92.1) | (106.9) |
Change in accumulated other comprehensive income (loss) before reclassifications | 0.4 | 0.3 | 0.4 | 0.6 |
Amounts reclassified from accumulated other comprehensive income (loss) | (1.8) | (1) | (5.4) | (3.6) |
Total other comprehensive loss | (1.4) | (0.7) | (5) | (3) |
Ending balance | $ (97.1) | $ (109.9) | $ (97.1) | $ (109.9) |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Underwriting, selling, general and administrative expenses | $ 1,842.5 | $ 1,784 | $ 5,444.8 | $ 5,210.4 |
Provision for income taxes | 1.2 | 37.2 | 45.1 | 133.8 |
Net of tax | (7.3) | (879.8) | (208.5) | (1,240.9) |
Net realized losses (gains) on investments | 27.4 | (112.1) | 166.2 | (123.2) |
Interest expense | 26.3 | 27.5 | 80.4 | 84.7 |
Total reclassifications for the period, net of tax | 9.8 | (620.4) | 31 | (629.4) |
Foreign currency translation adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | 0 | (0.3) | 0 | (0.3) |
Net unrealized losses (gains) on investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | 12.2 | (618.5) | 38.3 | (623.7) |
Net unrealized gains on derivative transactions | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | (0.6) | (0.6) | (1.9) | (1.8) |
Unamortized net losses on Pension Plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications for the period, net of tax | (1.8) | (1) | (5.4) | (3.6) |
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 | 9.8 | (620.4) | 31 | (629.4) |
Reclassification out of Accumulated Other Comprehensive Income | Foreign currency translation adjustment | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Underwriting, selling, general and administrative expenses | 0 | (0.8) | 0 | (0.8) |
Provision for income taxes | 0 | 0.5 | 0 | 0.5 |
Net of tax | 0 | (0.3) | 0 | (0.3) |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized losses (gains) on investments | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | (3.3) | 171.1 | (10.2) | 172.4 |
Net of tax | 12.2 | (618.5) | 38.3 | (623.7) |
Net realized losses (gains) on investments | 15.5 | (789.6) | 48.5 | (796.1) |
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains on derivative transactions | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | 0.1 | 0.1 | 0.4 | 0.3 |
Net of tax | (0.6) | (0.6) | (1.9) | (1.8) |
Interest expense | (0.7) | (0.7) | (2.3) | (2.1) |
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 | (2.3) | (1.3) | (6.9) | (4.5) |
Provision for income taxes | 0.5 | 0.3 | 1.5 | 0.9 |
Total reclassifications for the period, net of tax | (1.8) | (1) | (5.4) | (3.6) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of net loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 1.1 | 1.8 | 3.3 | 5.4 |
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) | (3.4) | (10.2) | (10.2) |
Reclassification out of Accumulated Other Comprehensive Income | Settlement loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | $ 0 | $ 0.3 | $ 0 | $ 0.3 |
Equity Transactions - Narrative
Equity Transactions - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2018 | |
Class of Stock [Line Items] | |||
Preferred stock dividends | $ 4.7 | ||
MCPS | |||
Class of Stock [Line Items] | |||
Preferred stock, shares issued (in shares) | 2,875,000 | ||
Preferred stock, par value (in dollars per share) | $ 1 | ||
Public offering price (in dollars per share) | $ 100 | ||
Stock conversion ratio (in shares) | 0.9405 | ||
Number of shares converted (in shares) | 2,703,911 | ||
Share interest rate (as a percent) | 6.50% | ||
Liquidation price (in dollars per share) | $ 100 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator | ||||
Net income from continuing operations attributable to stockholders | $ 7.3 | $ 151 | $ 208.5 | $ 478.9 |
Less: Preferred stock dividends | 0 | 0 | 0 | (4.7) |
Net income from continuing operations attributable to common stockholders | 7.3 | 151 | 208.5 | 474.2 |
Net income from continuing operations attributable to common stockholders | 7.3 | 151 | 208.5 | 474.2 |
Less: Common stock dividends paid | (36.7) | (38.5) | (112.7) | (118.5) |
Undistributed earnings | (29.4) | 112.5 | 95.8 | 355.7 |
Undistributed earnings | (29.4) | 112.5 | 95.8 | 355.7 |
Add: Net income from discontinued operations | 0 | 728.8 | 0 | 762 |
Net income (loss) attributable to common stockholders, basic | 7.3 | 879.8 | 208.5 | 1,236.2 |
Net income (loss) attributable to common stockholders, diluted | $ 7.3 | $ 879.8 | $ 208.5 | $ 1,236.2 |
Denominator | ||||
Weighted average common shares outstanding used in basic per common share calculations (in shares) | 53,717,373 | 59,126,313 | 54,693,799 | 59,769,690 |
Incremental common shares from: | ||||
Weighted average common shares outstanding used in diluted per common share calculations (in shares) | 54,066,605 | 59,479,464 | 55,124,850 | 60,855,321 |
Basic | ||||
Distributed earnings (in dollars per share) | $ 0.68 | $ 0.65 | $ 2.06 | $ 1.98 |
Undistributed earnings (in dollars per share) | (0.54) | 1.91 | 1.75 | 5.96 |
Net income from continuing operations (in dollars per share) | 0.14 | 2.56 | 3.81 | 7.94 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 12.32 | 0 | 12.74 |
Net income (loss) attributable to common stockholders (in dollars per share) | 0.14 | 14.88 | 3.81 | 20.68 |
Diluted | ||||
Distributed earnings (in dollars per share) | 0.68 | 0.65 | 2.04 | 1.95 |
Undistributed earning (in dollars per share) | (0.54) | 1.89 | 1.74 | 5.92 |
Net income from continuing operations (in dollars per share) | 0.14 | 2.54 | 3.78 | 7.87 |
Net income (loss) from discontinued operations (in dollars per share) | 0 | 12.25 | 0 | 12.52 |
Net income (loss) attributable to common stockholders (in dollars per share) | $ 0.14 | $ 14.79 | $ 3.78 | $ 20.39 |
PSUs | ||||
Incremental common shares from: | ||||
Incremental common shares (in shares) | 345,887 | 352,918 | 425,887 | 371,793 |
ESPP | ||||
Incremental common shares from: | ||||
Incremental common shares (in shares) | 3,345 | 233 | 5,164 | 0 |
MCPS | ||||
Incremental common shares from: | ||||
Mandatory convertible preferred stock (in shares) | 0 | 0 | 0 | 713,838 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Outstanding anti-dilutive shares excluded from computation of diluted EPS (in shares) | 66,144 | 3,289 | 59,669 | 1,650 |
Retirement and Other Employee_3
Retirement and Other Employee Benefits - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | Feb. 29, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Qualified pension benefits plan funded status | $ 70,500,000 | $ 74,800,000 | ||
Funded status percentage | 112% | 110% | ||
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Plan | Qualified Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | $ 4.1 | $ 3.5 | $ 12.5 | $ 10.5 |
Expected return on plan assets | (6.9) | (6.8) | (20.7) | (20.6) |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | 0.8 | 1.2 | 2.3 | 3.6 |
Settlement loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | (2) | (2.1) | (5.9) | (6.5) |
Pension Plan | Unfunded Nonqualified Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 0.3 | 0.3 | 1 | 0.9 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of net loss (gain) | 0.5 | 0.8 | 1.6 | 2.4 |
Settlement loss | 1.8 | 0.3 | 1.8 | 0.3 |
Net periodic benefit cost | 2.6 | 1.4 | 4.4 | 3.6 |
Retirement Health Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 0 | 0.1 | 0.1 | 0.1 |
Expected return on plan assets | (0.3) | (0.4) | (1) | (1.2) |
Amortization of prior service credit | (3.4) | (3.4) | (10.2) | (10.2) |
Amortization of net loss (gain) | (0.2) | (0.2) | (0.6) | (0.4) |
Settlement loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ (3.9) | $ (3.9) | $ (11.7) | $ (11.7) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Letters of credit outstanding | $ 7 | $ 7.2 |
Revision of Prior Period Fina_3
Revision of Prior Period Financial Statements - Revised Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Reinsurance recoverables | $ 7,561.8 | $ 6,181.2 | ||||
Other Assets | 666.7 | 698.9 | ||||
Total assets | 33,245.7 | 33,920.6 | ||||
Claims and benefits payable | 3,022.4 | 1,604.8 | $ 1,905 | $ 1,619.9 | ||
Reinsurance balances payable | 520.9 | 446.2 | ||||
Total liabilities | 29,146.8 | 28,456.5 | ||||
Retained earnings | 3,678.9 | 4,041.2 | ||||
Total Assurant, Inc. stockholders’ equity | 4,098.9 | 5,464.1 | ||||
Total equity | 4,098.9 | $ 4,459.7 | 5,464.1 | 5,721.3 | $ 5,887.9 | 5,939.6 |
Total liabilities and equity | $ 33,245.7 | 33,920.6 | ||||
As Reported | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Reinsurance recoverables | 6,178.9 | |||||
Other Assets | 692.1 | |||||
Total assets | 33,911.5 | |||||
Claims and benefits payable | 1,595.9 | |||||
Reinsurance balances payable | 420.4 | |||||
Total liabilities | 28,421.8 | |||||
Retained earnings | 4,066.8 | |||||
Total Assurant, Inc. stockholders’ equity | 5,489.7 | |||||
Total equity | 5,489.7 | 5,744.4 | 5,908.4 | 5,954.8 | ||
Total liabilities and equity | 33,911.5 | |||||
Adjustment | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Reinsurance recoverables | 2.3 | |||||
Other Assets | 6.8 | |||||
Total assets | 9.1 | |||||
Claims and benefits payable | 8.9 | |||||
Reinsurance balances payable | 25.8 | |||||
Total liabilities | 34.7 | |||||
Retained earnings | (25.6) | |||||
Total Assurant, Inc. stockholders’ equity | (25.6) | |||||
Total equity | (25.6) | $ (23.1) | $ (20.5) | $ (15.2) | ||
Total liabilities and equity | $ 9.1 |
Revision of Prior Period Fina_4
Revision of Prior Period Financial Statements - Revised Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Policyholder benefits | $ 670.5 | $ 617.4 | $ 1,760.5 | $ 1,684.2 |
Underwriting, general and administrative expenses | 818.4 | 2,306.7 | ||
Total benefits, losses and expenses | 2,539.3 | 2,449.6 | 7,286.6 | 7,000 |
Income from continuing operations before income tax expense | 8.5 | 188.2 | 253.6 | 612.7 |
Income tax expense | 1.2 | 37.2 | 45.1 | 133.8 |
Net income from continuing operations | 7.3 | 151 | 208.5 | 478.9 |
Net income | 7.3 | 879.8 | 208.5 | 1,240.9 |
Net Income Attributable to Stockholders | 7.3 | 879.8 | 208.5 | 1,240.9 |
Net income attributable to common stockholders | 7.3 | 879.8 | 208.5 | 1,236.2 |
Net income attributable to common stockholders | $ 7.3 | $ 879.8 | $ 208.5 | $ 1,236.2 |
Basic earnings per share from continuing operations (in dollars per share) | $ 0.14 | $ 2.56 | $ 3.81 | $ 7.94 |
Basic earnings per share attributable to common stockholders (in dollars per share) | 0.14 | 14.88 | 3.81 | 20.68 |
Diluted earnings per share from continuing operations (in dollars per share) | 0.14 | 2.54 | 3.78 | 7.87 |
Diluted earnings per share attributable to common stockholders (in dollars per share) | $ 0.14 | $ 14.79 | $ 3.78 | $ 20.39 |
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Policyholder benefits | $ 614.2 | $ 1,681.2 | ||
Underwriting, general and administrative expenses | 818.3 | 2,301.2 | ||
Total benefits, losses and expenses | 2,446.3 | 6,991.5 | ||
Income from continuing operations before income tax expense | 191.5 | 621.2 | ||
Income tax expense | 37.9 | 134.4 | ||
Net income from continuing operations | 153.6 | 486.8 | ||
Net income | 882.4 | 1,248.8 | ||
Net Income Attributable to Stockholders | 882.4 | 1,248.8 | ||
Net income attributable to common stockholders | 882.4 | 1,244.1 | ||
Net income attributable to common stockholders | $ 882.4 | $ 1,244.1 | ||
Basic earnings per share from continuing operations (in dollars per share) | $ 2.60 | $ 8.07 | ||
Basic earnings per share attributable to common stockholders (in dollars per share) | 14.92 | 20.81 | ||
Diluted earnings per share from continuing operations (in dollars per share) | 2.58 | 8 | ||
Diluted earnings per share attributable to common stockholders (in dollars per share) | $ 14.83 | $ 20.52 | ||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Policyholder benefits | $ 3.2 | $ 3 | ||
Underwriting, general and administrative expenses | 0.1 | 5.5 | ||
Total benefits, losses and expenses | 3.3 | 8.5 | ||
Income from continuing operations before income tax expense | (3.3) | (8.5) | ||
Income tax expense | (0.7) | (0.6) | ||
Net income from continuing operations | (2.6) | (7.9) | ||
Net income | (2.6) | (7.9) | ||
Net Income Attributable to Stockholders | (2.6) | (7.9) | ||
Net income attributable to common stockholders | (2.6) | (7.9) | ||
Net income attributable to common stockholders | $ (2.6) | $ (7.9) | ||
Basic earnings per share from continuing operations (in dollars per share) | $ (0.04) | $ (0.13) | ||
Basic earnings per share attributable to common stockholders (in dollars per share) | (0.04) | (0.13) | ||
Diluted earnings per share from continuing operations (in dollars per share) | (0.04) | (0.13) | ||
Diluted earnings per share attributable to common stockholders (in dollars per share) | $ (0.04) | $ (0.13) |
Revision of Prior Period Fina_5
Revision of Prior Period Financial Statements - Revised Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | $ 7.3 | $ 879.8 | $ 208.5 | $ 1,240.9 |
Total comprehensive income | (255.4) | 191.7 | (726.4) | 447 |
Total comprehensive income attributable to stockholders | $ (255.4) | 191.7 | $ (726.4) | 447 |
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | 882.4 | 1,248.8 | ||
Total comprehensive income | 194.3 | 454.9 | ||
Total comprehensive income attributable to stockholders | 194.3 | 454.9 | ||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net income | (2.6) | (7.9) | ||
Total comprehensive income | (2.6) | (7.9) | ||
Total comprehensive income attributable to stockholders | $ (2.6) | $ (7.9) |
Revision of Prior Period Fina_6
Revision of Prior Period Financial Statements - Revised Consolidated Statements of Changes in Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Beginning balance | $ 4,459.7 | $ 5,887.9 | $ 5,464.1 | $ 5,939.6 |
Net income | 7.3 | 879.8 | 208.5 | 1,240.9 |
Ending balance | $ 4,098.9 | 5,721.3 | 4,098.9 | 5,721.3 |
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Beginning balance | 5,908.4 | 5,489.7 | 5,954.8 | |
Net income | 882.4 | 1,248.8 | ||
Ending balance | 5,744.4 | 5,744.4 | ||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Beginning balance | (20.5) | $ (25.6) | (15.2) | |
Net income | (2.6) | (7.9) | ||
Ending balance | $ (23.1) | $ (23.1) |
Revision of Prior Period Fina_7
Revision of Prior Period Financial Statements - Revised Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net Income Attributable to Stockholders | $ 7.3 | $ 879.8 | $ 208.5 | $ 1,240.9 |
Change in insurance policy reserves and expenses | 2,388.4 | 1,425.8 | ||
Change in reinsurance recoverable | (1,397.2) | (518.7) | ||
Change in reinsurance balance payable | 71.8 | 37.2 | ||
Change in deferred acquisition costs and value of business acquired | (514.1) | (706.6) | ||
Change in taxes receivable | (123.4) | |||
Other | (17.9) | (17) | ||
Net cash provided by operating activities | $ 319.8 | 527 | ||
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net Income Attributable to Stockholders | 882.4 | 1,248.8 | ||
Change in insurance policy reserves and expenses | 1,427.8 | |||
Change in reinsurance recoverable | (517.7) | |||
Change in reinsurance balance payable | 31.2 | |||
Change in deferred acquisition costs and value of business acquired | (712.1) | |||
Change in taxes receivable | (122.7) | |||
Other | (17.1) | |||
Net cash provided by operating activities | 527 | |||
Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net Income Attributable to Stockholders | $ (2.6) | (7.9) | ||
Change in insurance policy reserves and expenses | (2) | |||
Change in reinsurance recoverable | (1) | |||
Change in reinsurance balance payable | 6 | |||
Change in deferred acquisition costs and value of business acquired | 5.5 | |||
Change in taxes receivable | (0.7) | |||
Other | 0.1 | |||
Net cash provided by operating activities | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | Nov. 01, 2022 USD ($) |
Subsequent Event | American Lease Insurance Agency Corporation | |
Subsequent Event [Line Items] | |
Cash consideration for acquisition | $ 59.8 |