| Reserves | Reserves Short Duration Contracts Continuing Business (Global Lifestyle and Global Housing) The Company’s short duration contracts include products and services within the Global Lifestyle and Global Housing segments. The main product lines for Global Lifestyle include mobile device protection, extended service contracts for consumer electronics and appliances, and credit and other insurance. The main product lines for Global Housing include lender-placed homeowners, manufactured housing and flood insurance; voluntary manufactured housing, condominium and homeowners insurance; and renters insurance. Total IBNR reserves are determined by subtracting case basis incurred losses from the ultimate loss and loss adjustment expense estimates. Ultimate loss and loss adjustment expenses are estimated utilizing generally accepted actuarial loss reserving methods. The reserving methods employed by the Company include the Chain Ladder, Munich Chain Ladder and Bornhuetter-Ferguson methods. Reportable catastrophe losses are analyzed and reserved for separately using a frequency and severity approach. The methods involve aggregating paid and case-incurred loss data by accident quarter (or accident year) and accident age for each product grouping. As the data ages, loss development factors are calculated that measure emerging claim development patterns between reporting periods. By selecting loss development factors indicative of remaining development, known losses are projected to an ultimate incurred basis for each accident period. The underlying premise of the Chain Ladder method is that future claims development is best estimated using past claims development, whereas the Bornhuetter-Ferguson method employs a combination of past claims development and an estimate of ultimate losses based on an expected loss ratio. The Munich Chain Ladder method takes into account the correlations between paid and incurred development in projecting future development factors and is typically more applicable to products experiencing greater variability in incurred to paid ratios. The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of the different methods that are applied consistently each period considering significant assumptions, including projected loss development factors and expected loss ratios. 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. Non-core Operations Short duration contracts in non-core operations consist of the sharing economy and small commercial products previously reported within Global Housing. While the contracts are classified as short duration, the coverages were predominantly commercial liability and have a long reporting and settlement tail compared to property coverages which make up most of the Company’s core operations. The reserving methodology described for continuing short duration business is applicable for non-core operations. Given the nature of commercial liability coverages and its relatively long claim runoff duration, additional emphasis is placed on social inflation impacts and analysis of individual case reserve adequacy on known claims. This is done through use of average cost per claim methods that include allowance for future inflation impacts, detailed open claim inventory analysis, and leveraging industry development patterns to supplement the Company’s own historical claims experience. Disposed and Runoff Short Duration Insurance Lines Short duration contracts within the disposed business include certain medical policies no longer offered and Assurant Employee Benefits policies disposed of via reinsurance. Reserves and reinsurance recoverables for previously disposed business are included in the consolidated balance sheets. See Note 18 for additional information. The Company has runoff exposure to asbestos, environmental and other general liability claims arising from the Company’s participation in certain reinsurance pools from 1971 through 1985 from contracts discontinued many years ago. The amount of carried case reserves are based on recommendations of the various pool managers. Using information currently available, and after consideration of the reserves reflected in the consolidated financial statements, the Company does not believe or expect that changes in reserve estimates for these claims are likely to be material. Long Duration Contracts The following table presents the balances and changes in the long-term care future policy benefits and expenses reserve: Years Ended December 31, 2023 2022 2021 Present value of expected net premiums Balance, beginning of period $ 34.2 $ 37.1 $ 44.4 Beginning balance at original discount rate 33.4 29.2 33.7 Effect of changes in cash flow assumptions (1) 1.5 9.4 (3.2) Effect of actual variances from expected experience 3.5 (2.7) (2.4) Adjusted beginning of period balance 38.4 35.9 28.1 Experience variance (2) — (0.3) 2.4 Interest accrual 2.8 4.6 6.0 Net premiums collected (4.7) (6.8) (7.3) Ending balance at original discount rate 36.5 33.4 29.2 Effect of changes in discount rate assumptions (0.1) 0.8 7.9 Balance, end of period $ 36.4 $ 34.2 $ 37.1 Present value of expected future policy benefits Balance, beginning of period $ 462.4 $ 658.5 $ 683.2 Beginning balance at original discount rate 444.4 430.0 421.7 Effect of changes in cash flow assumptions (1) — 12.3 (1.2) Effect of actual variances from expected experience 4.4 (3.3) (2.7) Adjusted beginning of period balance 448.8 439.0 417.8 Experience variance (2) 1.0 (1.2) (0.4) Interest accrual 19.5 24.7 29.3 Benefit payments (16.3) (18.1) (16.7) Ending balance at original discount rate 453.0 444.4 430.0 Effect of changes in discount rate assumptions (2.4) 18.0 228.5 Balance, end of period $ 450.6 $ 462.4 $ 658.5 Net future policy benefits and expenses $ 414.2 $ 428.2 $ 621.4 Related reinsurance recoverable 414.2 428.2 621.4 Net future policy benefits and expenses, after reinsurance recoverable $ — $ — $ — Weighted-average liability duration of the future policy benefits and expenses (in years) 12.0 12.7 13.0 (1) The increase for the years ending December 31, 2023 and 2022 was primarily due to historical experience reflecting a decreasing trend in lapse and mortality rates on the long-term care insurance products. The decrease for the year ending December 31, 2021 was primarily due to reduced expense assumptions. (2) Experience variance includes adverse development resulting from the allocation of the premium deficiency reserve to the cohort level for issue years where net premiums exceed gross premiums. The following table presents a reconciliation of the long-term care net future policy benefits and expenses to the future policy benefits and expenses reserve in the consolidated balance sheet: December 31, 2023 December 31, 2022 Long-term care $ 414.2 $ 428.2 Other 73.0 79.7 Total $ 487.2 $ 507.9 The following table presents the amount of undiscounted expected future benefit payments and expected gross premiums for the long-term care insurance contracts: December 31, 2023 December 31, 2022 Expected future benefits payments $ 829.3 $ 850.0 Expected future gross premiums $ 69.4 $ 76.2 The following table presents the amount of long-term care revenue and interest recognized in the consolidated statements of operations: Years Ended December 31, 2023 2022 2021 Gross premiums $ 1.5 $ 1.7 $ 1.9 Interest expense (original discount rate) $ 5.6 $ 4.7 $ 5.1 The following table presents the weighted-average interest rate for long-term care insurance contracts: December 31, 2023 December 31, 2022 Interest expense (original discount rate) 5.95 % 5.95 % Current discount rate 6.01 % 5.52 % Concurrent with the transition period beginning January 1, 2021 for the adoption of ASU 2018-12, the Company elected to account for the long-term care insurance contracts using reserve updates on a quarter lag whereby the September 30, 2020 cash flow and other assumptions are used for the pre-adoption December 31, 2020 future policy benefits and expenses reserve. Under the modified retrospective method, the long-term care insurance contracts are grouped into cohorts based on the contract’s issue year. Premium deficiency reserves are allocated proportional to the cohort’s reserve balance as of the transition date of December 31, 2020. At the cohort level, the NPR calculation is performed, and the unlocking of the NPR for cohorts in excess of 100% is recognized through opening retained earnings. A balance sheet remeasurement of the revised future policy benefits and expenses reserve is recorded using the current discount rate as of December 31, 2020 with the remeasurement amount recorded through AOCI. Discount rate changes between the original and current discount rate as of December 31, 2020 were significant. The original discount rate at transition is a spot rate of 5.95% which is based on the most recent premium deficiency unlocking discount rate prior to transition using asset yields from investments allocated to the product at the time of the unlocking of the assumption. The current discount rate at transition was 1.69% reflecting prevailing interest rates as of December 31, 2020. The amended guidance has no impact to consolidated stockholders’ equity or net income on the long-term care insurance contracts as the reserves are fully reinsured. The following table illustrates the impact of adoption on the long-term care insurance contracts: Future Policy Benefits and Expenses, pre-adoption December 31, 2020 $ 386.4 Effect of the remeasurement of the liability at current discount rate 250.8 Adjustment for loss contracts with NPR in excess of 100% under the modified retrospective approach 1.6 Adjusted balance, beginning of January 1, 2021 638.8 Less: reinsurance recoverable (638.8) Future Policy Benefits and Expenses, beginning of year January 1, 2021, net of reinsurance $ — The following presents the effect of transition adjustments on consolidated stockholders’ equity: January 1, 2021 Retained Earnings Accumulated Other Comprehensive Loss $ (1.6) $ (250.8) 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 are comprised of case and IBNR reserves. These balances do not include the recoverable amounts related to certain high deductible policies in the sharing economy business, included in the non-core operations, for which the Company is responsible for paying the entirety of the claim and is subsequently reimbursed by the insured for the deductible portion of the claim. As of December 31, 2023, the Company had exposure of $369.5 million of reserves below the deductible that it would be responsible for if the clients were to default on their contractual obligation to pay the deductible. Refer to Note 5 for more information on the evaluation of the credit risk exposure from these recoverables. 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 expenses 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. Years Ended December 31, 2023 2022 2021 Claims and benefits payable, at beginning of year $ 2,210.0 $ 1,523.0 $ 1,510.4 Less: Reinsurance ceded and other (1,228.8) (744.1) (741.0) Net claims and benefits payable, at beginning of year 981.2 778.9 769.4 Incurred losses and loss adjustment expenses related to: Current year 2,548.4 2,304.3 2,213.5 Prior years (26.6) 55.5 (11.6) Total incurred losses and loss adjustment expenses 2,521.8 2,359.8 2,201.9 Paid losses and loss adjustment expenses related to: Current year 1,802.3 1,648.1 1,687.3 Prior years 598.1 509.4 505.1 Total paid losses and loss adjustment expenses 2,400.4 2,157.5 2,192.4 Net claims and benefits payable, at end of year 1,102.6 981.2 778.9 Plus: Reinsurance ceded and other (1) (2) 886.6 1,228.8 744.1 Claims and benefits payable, at end of year (1) $ 1,989.2 $ 2,210.0 $ 1,523.0 (1) Includes reinsurance recoverables and claims and benefits payable of $123.6 million, $424.3 million and $143.8 million as of December 31, 2023, 2022 and 2021, respectively, which were ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program. (2) The balance reflects a $2.0 million transfer to liabilities held for sale as of December 31, 2021. A comparison of net (favorable) unfavorable prior year development is shown below across the Company’s current and former segments and businesses. Prior Year Incurred Loss Development for the Years Ending December 31, 2023 2022 2021 Global Lifestyle $ (23.6) $ (45.4) $ (32.9) Global Housing (37.1) 28.9 6.7 Non-core operations 40.1 77.4 23.3 All Other (6.0) (5.4) (8.7) Total $ (26.6) $ 55.5 $ (11.6) The Company experienced net favorable loss development for the year ended December 31, 2023, net unfavorable loss development for the year ended December 31, 2022, and net favorable loss development for the year ended December 31, 2021. Global Lifestyle experienced net favorable development in 2023, 2022 and 2021 of $23.6 million, $45.4 million and $32.9 million, respectively. The decrease in net favorable development from 2022 to 2023 was primarily due to Global Automotive ancillary products as the used car market began to normalize in 2023 and the high net favorable development experienced in 2022 did not repeat. Global Housing experienced net favorable loss development of $37.1 million in 2023 as claim experience for lender-placed homeowners insurance developed favorably due to easing inflation and legislation reform in Florida. Global Housing experienced net unfavorable development of $28.9 million in 2022 primarily due to lender-placed homeowners insurance affected by longer claim settlement lags and inflationary impacts. Global Housing experienced net unfavorable development of $6.7 million in 2021, primarily attributable to prior year reportable catastrophes. The non-core operations, which includes the sharing economy and small commercial businesses, contributed net unfavorable loss development of $40.1 million, $77.4 million, and $23.3 million in 2023, 2022 and 2021, respectively. A more detailed explanation of the claims development from Global Lifestyle, Global Housing and non-core operations is presented below, including claims development by accident year. Reserves for the longer-tail property and casualty coverages included in All Other (e.g., asbestos, environmental and other general liability) had no material changes in estimated amounts for claims incurred in prior years. The following tables represent the Global Lifestyle, Global Housing and non-core operations incurred claims and allocated claim adjustment expenses, net of reinsurance, less cumulative paid claims and allocated claim adjustment expenses, net of reinsurance to reconcile to total claims and benefits payable, net of reinsurance as of December 31, 2023. The tables provide undiscounted information about claims development by accident year for the significant short duration claims and benefits payable balances. The following factors are relevant to the loss development information included in the tables below: • Table Presentation: The tables are organized by accident year. For certain categories of claims and for reinsurance recoverables, losses may sometimes be reclassified to an earlier or later accident year as more information about the date of occurrence becomes available to us. These reclassifications are shown as development in the respective years in the tables below. Predominantly, the Company writes short-tail lines that are written on an occurrence basis. Five years of claims development information is provided since most of the claims are fully developed after five years, as shown in the average payout ratio tables. • Table Groupings: The groupings have homogeneous risk characteristics with similar development patterns and would generally be subject to similar trends and reflect our reportable segments. • Impact of Reinsurance: The reinsurance program varies by exposure type. Historically, the Company has leveraged facultative and treaty reinsurance, both on pro-rata and excess of loss basis. The reinsurance program may change from year to year, which may affect the comparability of the data presented in the tables. • IBNR: Includes development from past reported losses in IBNR. • Information excluded from tables: Unallocated loss adjustment expenses are excluded from the tables. • Foreign exchange rates: The loss development for operations outside of the U.S. is presented for all accident years using the current exchange rates at December 31, 2023. Although this approach requires restating all prior accident year information, the changes in exchange rates do not impact incurred and paid loss development trends. • Acquisitions: Includes acquisitions from all accident years presented in the tables. For purposes of this disclosure, we have applied the retrospective method for the acquired reserves, including incurred and paid claim development histories throughout the relevant tables. It should be noted that historical reserves for the acquired business were established by the acquired companies using methods, assumptions and procedures then in effect which may differ from our current reserving bases. Accordingly, it may not be appropriate to extrapolate future reserve adequacy based on the aggregated historical results shown in the tables. • Dispositions: Excludes dispositions from all accident years presented in the tables. • Claim counts: Considers a reported claim to be one claim for each claimant or feature for each loss occurrence. Reported claims for losses from assumed reinsurance contracts are not available and hence not included in the reported claims. There are limitations that should be considered on the reported claim count data in the tables below, including: ◦ Claim counts are presented only on a reported (not an ultimate) basis; ◦ The tables below include lines of business and geographies at a certain aggregated level which may indicate different frequency and severity trends and characteristics, and may not be as meaningful as the claim count information related to the individual products within those lines of business and geographies; ◦ Certain lines of business are more likely to be subject to occurrences involving multiple claimants and features, which can distort measures based on the reported claim counts in the table below; and ◦ Reported claim counts are not adjusted for ceded reinsurance, which may distort the measure of frequency or severity. • Required Supplemental Information: The information about incurred and paid loss development for all periods preceding year ended December 31, 2023 and the related historical claims payout percentage disclosure is unaudited and is presented as required supplementary information. Global Lifestyle Net Claims Development Tables Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2023 Years Ended December 31, Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Claims (2) Accident Year 2019 Unaudited 2020 Unaudited 2021 Unaudited 2022 Unaudited 2023 2019 $ 1,524.0 $ 1,505.8 $ 1,502.4 $ 1,501.2 $ 1,499.8 $ 0.5 9,890,635 2020 1,456.0 1,427.6 1,428.1 1,425.6 0.8 9,658,308 2021 1,363.2 1,308.2 1,304.9 3.2 9,809,037 2022 1,398.1 1,381.5 9.4 9,367,577 2023 1,632.1 182.9 7,598,189 Total $ 7,243.9 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2019 Unaudited 2020 Unaudited 2021 Unaudited 2022 Unaudited 2023 2019 $ 1,299.9 $ 1,485.4 $ 1,492.6 $ 1,495.3 $ 1,496.6 2020 1,227.9 1,410.4 1,417.4 1,419.5 2021 1,129.9 1,294.2 1,298.7 2022 1,168.6 1,366.6 2023 1,365.5 Total $ 6,946.9 Outstanding claims and benefits payable before 2019, net of reinsurance 7.3 Claims and benefits payable, net of reinsurance $ 304.3 Average Annual Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Unaudited Year 2 Unaudited Year 3 Unaudited Year 4 Unaudited Year 5 Unaudited 86.2% 13.1% 0.4% 0.2% 0.1% (1) Includes a provision for development on case reserves. (2) Number of paid claims plus open (pending) claims. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that the Company’s reinsurance includes non-proportional treaties. Using the December 31, 2023 foreign exchange rates for all years, Global Lifestyle experienced $23.6 million of net favorable loss development for the year ended December 31, 2023, compared to net favorable loss development of $45.4 million and $32.9 million for the years ended December 31, 2022 and 2021, respectively. These amounts are based on the change in net incurred losses from the claims development tables above, plus additional impacts from accident years prior to 2019. 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. Development from Global Lifestyle is 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 year ended December 31, 2023, the Global Lifestyle net favorable development of $23.6 million was attributable to Connected Living which contributed $26.2 million comprised of $14.7 million from credit and other insurance, $6.0 million from mobile and $5.5 million from extended service contracts. The favorable development from credit and other insurance was primarily due to favorable runoff of credit products in Europe and from Canada credit and travel programs where loss assumptions related to inflation and COVID-19 did not materialize. For extended service contracts, improving data maturity on a large client resulted in favorable reserve refinements. Global Automotive experienced net unfavorable development of $2.7 million, driven by inflationary impacts on parts and labor costs. For the year ended December 31, 2022, the Global Lifestyle net favorable development was primarily attributable to reserve releases in Global Automotive ancillary products due to the strong used vehicle market. For the year ended December 31, 2021, the release of reserves associated with potential COVID-19-related claims that have not materialized was a contributing factor. Foreign exchange rate movements over time caused some of the reserve differences shown in the reserve roll forward and prior year incurred loss tables to vary from what is reflected in the claims development tables for Global Lifestyle. The impacts by year were $0.3 million, $(0.4) million, and $(0.7) million for the years ended December 31, 2023, 2022 and 2021, respectively. The claims development tables above remove the impact due to changing foreign exchange rates over time for comparability. Global Housing Net Claims Development Tables Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2023 Years Ended December 31, Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Claims (2) Accident Year 2019 Unaudited 2020 Unaudited 2021 Unaudited 2022 Unaudited 2023 2019 $ 729.9 $ 712.7 $ 714.3 $ 722.8 $ 721.3 $ 6.8 182,659 2020 804.2 804.8 834.5 848.9 21.0 191,156 2021 784.0 769.0 770.5 34.1 194,363 2022 862.4 809.4 89.3 185,983 2023 901.4 387.6 163,511 Total $ 4,051.5 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2019 Unaudited 2020 Unaudited 2021 Unaudited 2022 Unaudited 2023 2019 $ 481.4 $ 656.2 $ 691.8 $ 709.3 $ 712.7 2020 528.9 730.1 793.0 820.8 2021 517.6 690.3 727.8 2022 467.7 701.3 2023 450.9 Total $ 3,413.5 Outstanding claims and benefits payable before 2019, net of reinsurance 12.4 Claims and benefits payable, net of reinsurance $ 650.4 Average Annual Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Unaudited Year 2 Unaudited Year 3 Unaudited Year 4 Unaudited Year 5 Unaudited 64.2% 26.2% 6.1% 3.0% 0.5% (1) Includes a provision for development on case reserves. (2) Number of paid claims plus open (pending) claims. Claim frequency is determined at a claimant reporting level. Depending on the nature of the product and related coverage triggers, it is possible for a claimant to contribute multiple claim counts in a given policy period. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that the Company’s reinsurance includes non-proportional treaties. For the year ended December 31, 2023, Global Housing experienced $37.1 million of net favorable loss development, compared to net unfavorable loss development of $28.9 million and $6.7 million for the years ended December 31, 2022 and 2021, respectively. These amounts are based on the change in net incurred losses from the claims development data above, plus additional impacts from accident years prior to 2019. For the year ended December 31, 2023, the net favorable development for Global Housing was attributable to non-catastrophe claim experience for lender-placed homeowners insurance, primarily accident year 2022, due to favorable inflation and frequency trends and legislative reforms in Florida. Unfavorable development on prior catastrophes, Winter Storm Elliott from accident year 2022 and Tropical Storm Eta from accident year 2020, partially offset the net favorable development. For the year ended December 31, 2022, the net unfavorable development for Global Housing was attributable to lender-placed homeowners insurance due to rising loss costs from inflation impacting recent accident years, coupled with lengthening claim settlement lags and Tropical Storm Eta development from accident year 2020. For the year ended December 31, 2021, the net unfavorable development for Global Housing was attributable to lender-placed homeowners insurance, primarily accident year 2020, due to longer claim settlement lags for water damage claims and inflation. Non-core Operations Net Claims Development Tables Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance December 31, 2023 Years Ended December 31, Total of Incurred-but-Not Reported Liabilities Plus Expected Development on Reported Claims (1) Cumulative Number of Reported Claims (2) Accident Year 2019 Unaudited 2020 Unaudited 2021 Unaudited 2022 Unaudited 2023 2019 $ 117.2 $ 133.6 $ 146.8 $ 163.3 $ 157.8 $ 14.6 22,846 2020 39.1 40.4 63.2 77.6 17.3 22,956 2021 38.9 62.2 87.1 29.7 20,421 2022 34.4 40.4 19.4 12,193 2023 6.3 3.0 1,033 Total $ 369.2 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance Years Ended December 31, Accident Year 2019 Unaudited 2020 Unaudited 2021 Unaudited 2022 Unaudited 2023 2019 $ 56.7 $ 95.8 $ 116.1 $ 131.3 $ 142.4 2020 14.8 22.8 35.4 53.5 2021 12.8 27.4 47.3 2022 7.2 15.3 2023 2.9 Total $ 261.4 Outstanding claims and benefits payable before 2019, net of reinsurance 6.7 Claims and benefits payable, net of reinsurance $ 114.5 Average Annual Payout of Incurred Claims by Age, Net of Reinsurance Year 1 Unaudited Year 2 Unaudited Year 3 Unaudited Year 4 Unaudited Year 5 Unaudited 31.2% 21.0% 20.2% 19.3% 8.3% (1) Includes a provision for development on case reserves. (2) Number of paid claims plus open (pending) claims. Claim frequency is determined at a claimant reporting level. Depending on the nature of the product and related coverage triggers, it is possible for a claimant to contribute multiple claim counts in a given policy period. Claim count information related to ceded reinsurance is not reflected as it cannot be reasonably defined or quantified, given that the Company’s reinsurance includes non-proportional treaties. For the years ended December 31, 2023, 2022 and 2021, non-core operations contributed net unfavorable loss development of $40.1 million, $77.4 million, and $23.3 million, including $(0.5) million, $15.3 million and $16.2 million from small commercial and $40.6 million, $62.1 million and $7.1 million from sharing economy products, respectively. The Company stopped writing new small commercial business in 2019 and the claims are in runoff. For the year ended December 31, 2023, the net unfavorable development in sharing economy was attributable to reserve increases related to higher frequency expectations for the number of claims closed with indemnity payment and total reported claims, primarily for accident years 2020 and 2021. In second quarter 2023, the Company entered into a retroactive reinsurance treaty to cover certain known losses and adverse development up to a $50.0 million aggregate limit, relating to the small commercial business. For the year ended December 31, 2022, the net unfavorable development from sharing economy was driven by emerging adverse claim development trends on known claims as well as reserve assumption revisions to reflect relevant industry benchmarks. Both sharing economy and small commercial experienced unfavorable development in 2022 on known claims driven by social inflation and the release of the backlog from courts reopening after COVID-19. For the year ended December 31, 2021, the net unfavorable development for sharing economy products and small commercial was due to reserve strengthening associated with prior reported claims and was across multiple accident years. Reconciliation of the Disclosure of Net Incurred and Paid Claims Development to the Liability for Unpaid Claims and Benefits Payable December 31, 2023 Net outstanding liabilities Global Lifestyle $ 304.3 Global Housing 650.4 Non-core operations 114.5 Other short-duration insurance lines (1) 16.7 Disposed business short-duration insurance lines (Assurant Health) 1.1 Claims and benefits payable, net of reinsurance 1,087.0 Reinsurance recoverable on unpaid claims Global Lifestyle (2) 464.0 Global Housing 328.4 Non-core operations 76.2 Other short-duration insurance lines (1) 1.8 Disposed business short-duration insurance lines (Assurant Employee Benefits and Assurant Health) 14.2 Total reinsurance recoverable on unpaid claims 884.6 Insurance lines other than short-duration (3) 2.3 Unallocated claim adjustment expense 15.3 Total claims and benefits payable $ 1,989.2 (1) Asbestos and pollution reserves represents $14.7 million of the other short-duration insurance lines, with $1.2 million recoveries. (2) Disposed of property and casualty business represents $162.8 million of the $464.0 million in reinsurance recoverables for Global Lifestyle. (3) |
