ASSURANT, INC. – 10-Q – Management’s Discussion and Analysis of Financial Condition and Results of Operations – InsuranceNewsNet

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

The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with Management's Discussion and
Analysis of Financial Condition and Results of Operations ("MD&A") and the
annual audited consolidated financial statements for the year ended December 31,
2021 and accompanying notes included in our Annual Report on Form 10-K for the
year ended December 31, 2021 (the "2021 Annual Report") filed with the U.S.
Securities and Exchange Commission (the "SEC") and the unaudited consolidated
financial statements for the three months ended March 31, 2022 and accompanying
notes (the "Consolidated Financial Statements") included elsewhere in this
Quarterly Report on Form 10-Q (this "Report"). The following discussion and
analysis covers the three months ended March 31, 2022 ("First Quarter 2022" or
"Three Months 2022") and the three months ended March 31, 2021 ("First Quarter
2021" or "Three Months 2021").

Some of the statements in this Report, including our business and financial
plans and any statements regarding our anticipated future financial performance,
business prospects, growth and operating strategies and similar matters, may
constitute forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. You can identify these statements by
the use of words such as "outlook," "objective," "will," "may," "can,"
"anticipates," "expects," "estimates," "projects," "intends," "plans,"
"believes," "targets," "forecasts," "potential," "approximately," and the
negative version of those words and other words and terms with a similar
meaning. Any forward-looking statements contained in this Report are based upon
our historical performance and on current plans, estimates and expectations. The
inclusion of this forward-looking information should not be regarded as a
representation by us or any other person that our future plans, estimates or
expectations will be achieved. Our actual results might differ materially from
those projected in the forward-looking statements. We undertake no obligation to
update or review any forward-looking statement, whether as a result of new
information, future events or other developments. The following factors could
cause our actual results to differ materially from those currently estimated by
management:

(i) the loss of significant customers, distributors or other parties with whom we
do business, or if we are unable to renew contracts with them on favorable terms.
terms, or if such parties face financial, reputational or regulatory issues;

(ii) significant competitive pressures, changes in customer preferences and
disturbance;

(iii) failure to execute our strategy, including by pursuing
service of key executives, senior leaders, highly qualified personnel and a
a high performing workforce;

(iv) the inability to find suitable acquisitions at attractive prices, to integrate
effectively acquire businesses or identify new areas of organic growth;

(v) our inability to recover if we experience a business continuity event;

(vi) failure to manage vendors and other third parties that we rely on to
conduct business and provide services to our customers;

(vii) risks related to our international operations;

(viii) decline in value of mobile devices, or export compliance or other
risks in our mobile business;

(ix) our inability to develop and maintain distribution sources or to attract and
retaining salespeople and executives with key customer relationships;

(x) risks associated with joint ventures, franchises and investments in which we
share ownership and management with third parties;

(xi) the impact of catastrophic and non-catastrophic losses, including as a result
climate change;

(xii) negative publicity regarding our business or industry;

(xiii)the impact of general economic, financial market and political conditions
and conditions in the markets in which we operate, including the conflict in
Ukraine and the current inflationary environment;

(xiv) the impact of the COVID-19 pandemic and the measures taken to respond to it;

(xv) the adequacy of established reserves for claims and our inability to
accurately predict and price claims;

(xvi) a decline in the financial strength ratings of our insurance subsidiaries or
our senior corporate debt ratings;

(xvii) fluctuations in exchange rates;

(xviii) impairment of goodwill or other intangible assets;

(xix) failure to maintain effective internal control over
reports ;

(xx) adverse capital and credit market conditions;

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(xxi) a decrease in the value of our investment portfolio, in particular due to
market, credit and liquidity risks and changes in interest rates;

(xxii) impairment in the value of our deferred tax assets;

(xxiii) unavailability or inadequacy of reinsurance and credit coverage
risk of reinsurers, including those to whom we have sold business through
reinsurance;

(xxiv) the credit risk of certain of our agents, third party administrators and
clients ;

(xxv) the inability of our subsidiaries to pay sufficient dividends to
holding company and the limits on our ability to declare and pay dividends or
redeem shares;

(xxvi) the limitations of the analytical models we use to assist us in our
decision making;

(xxvii) failure to effectively maintain and modernize our information
technological systems and infrastructures, or the non-integration of those of
acquired businesses;

(xxviii)breaches of our information systems or those of third parties with whom
we do business, or the failure to protect the security of data in such systems,
including due to cyberattacks and as a result of working remotely;

(xxix)the costs of complying with, or the failure to comply with, extensive laws
and regulations to which we are subject, including those related to privacy,
data security, data protection or tax;

(xxx) the impact of litigation and regulatory action;

(xxxi) reductions or deferrals in the insurance premiums we charge;

(xxxii) changes in insurance, tax and other regulations;

(xxxiii) volatility of our common stock price and trading volume; and

(xxxiv) employee misconduct.

For more information on factors that could affect our actual results,
please refer to “Critical Factors Affecting Results” below and Section 7 of our
2021 Annual Report, and “Item 1A-Risk Factors” below and in our 2021 Annual Report
Report.

Reportable Segments

From March 31, 2022the Company had three segments to present which are
defined based on how the Company’s primary business decision
maker, our Chief Executive Officer (“CEO”), reviews the business to assess
performance and allocate resources, and that align with the nature of the
products and services offered:

•Global Lifestyle: includes 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");

•Global Housing: includes 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"); and

• Business and other: includes expenses related to business employees and
activities of the holding company.

In conjunction with the transition of our new CEO and chief operating decision
maker, we changed our 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
January 1, 2022. Prior period amounts have been revised to reflect the new
segment measure for profitability.

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, 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.


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Summary

Summary of financial results

Consolidated net income from continuing operations decreased $3.0 million, or
2%, to $145.5 million for First Quarter 2022 from $148.5 million for First
Quarter 2021, primarily driven by a decrease in net unrealized gains from
changes in fair value of equity securities, partially offset by lower reportable
catastrophes (reportable catastrophe losses, net of reinsurance and client
profit sharing adjustments, and including reinstatement and other premiums). We
incurred $2.4 million of after-tax reportable catastrophes in First Quarter
2022, compared to $34.5 million in First Quarter 2021.

Global Lifestyle Adjusted EBITDA increased $24.4 million, or 13%, to $217.4
million for First Quarter 2022 from $193.0 million for First Quarter 2021, due
to strong results across Connected Living and Global Automotive. In Connected
Living, mobile increased primarily from device protection performance in North
America, including more favorable loss experience and subscriber growth, as well
as an increase in global mobile devices serviced, mainly from higher trade-in
volumes. Global Automotive increased from higher investment income, favorable
loss experience in select ancillary products and expansion across distribution
channels.

Global Lifestyle net earned premiums, fees and other income increased $99.3
million, or 5%, to $1.96 billion for First Quarter 2022 from $1.86 billion for
First Quarter 2021, led by Global Automotive premium increases from strong prior
period sales. Connected Living increased modestly as mobile fee income growth
from service and repair and trade-in volumes was partially offset by premium
declines in runoff mobile programs.

Global Housing Adjusted EBITDA increased $10.3 million, or 11%, to $103.8
million for First Quarter 2022 from $93.5 million for First Quarter 2021,
primarily due to a $40.5 million pre-tax decrease in reportable catastrophes.
Excluding reportable catastrophes, Adjusted EBITDA decreased $30.2 million, or
22%, due to higher non-catastrophe loss experience, including a $13.8 million
increase within sharing economy offerings primarily related to a reserve
adjustment and adverse development from policies previously written under less
favorable terms. Lender-placed Insurance also experienced higher non-catastrophe
losses mainly from elevated fire claims.

Global Housing net earned premiums, fees and other income increased $3.8
million, or 1%, to $496.8 million for First Quarter 2022 from $493.0 million for
First Quarter 2021, as growth in Lender-placed Insurance from higher average
insured values and premium rates and Multifamily Housing was partially offset by
a decline in Specialty and Other from client runoff.

Corporate and Other Adjusted EBITDA was $(22.2) million for First Quarter 2022
compared to $(27.9) million for First Quarter 2021, primarily driven by lower
employee-related expenses and an increase in net investment income from higher
asset balances.

Critical Factors Affecting Results

Our results depend on, among other things, the appropriateness of our product
pricing, underwriting, the accuracy of our reserving methodology for future
policyholder benefits and claims, the frequency and severity of reportable and
non-reportable catastrophes, returns on and values of invested assets, our
investment income and our ability to manage our expenses and achieve expense
savings. Our results also depend on our ability to profitably grow our
businesses, in particular our Connected Living, Multifamily Housing and Global
Automotive businesses, and to maintain our position in our Lender-placed
Insurance business. Factors affecting these items, including conditions in
financial markets, the global economy and the markets in which we operate,
including the conflict in Ukraine, fluctuations in exchange rates, interest
rates and inflation, including the current inflationary environment, and
competition, may have a material adverse effect on our results of operations or
financial condition. For more information on these and other factors that could
affect our results, see "Item 1A-Risk Factors" below and in our 2021 Annual
Report, and "Item 7-Management's Discussion and Analysis of Financial Condition
and Results of Operations-Critical Factors Affecting Results" in our 2021 Annual
Report.

Our results may be impacted by our ability to continue to grow in the markets in
which we operate, including in our Connected Living, Multifamily Housing and
Global Automotive businesses, which may be impacted by our ability to provide a
superior digital-first customer experience, including from our investments in
technology and digital initiatives, to capitalize on the smart home opportunity,
and to maintain relationships with significant clients, distributors and other
parties or renew contracts with them on favorable terms. Our mobile business is
subject to volatility in mobile device trade-in volumes based on the actual and
anticipated timing of the release of new devices and carrier promotional
programs, as well as to changes in consumer preferences. Our Lender-placed
Insurance revenues will also be impacted by changes in the housing market. In
addition, across many of our businesses, we must respond to the actions of our
competitors, the threat of disruption and the competition for talent. See "Item
1A-Risk Factors-Business, Strategic and Operational Risks-Our revenues and
profits may decline if we are unable to maintain relationships with significant
clients, distributors and other parties, or renew contracts with them on
favorable terms, or if those parties face financial, reputational or regulatory
issues," "Significant competitive
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pressures, changes in customer preferences and disruptions could
our results of operations” and “The success of our business depends on the
the execution of our strategy, including through the continued service of our principal
senior managers, senior managers, highly qualified personnel and a high-performing team
workforce” in our 2021 annual report.

Significant Accounting Policies and Estimates

Our 2021 Annual Report describes the accounting policies and estimates that are
critical to the understanding of our results of operations, financial condition
and liquidity. The accounting policies and estimation process described in the
2021 Annual Report were consistently applied to the unaudited interim
Consolidated Financial Statements for First Quarter 2022.

Recent accounting pronouncements

For a discussion of recent accounting pronouncements, see note 3 to
Consolidated financial statements included elsewhere in this report.

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Operating results

Assurant Consolidated

The table below presents information regarding our consolidated results of
transactions for the periods indicated:

                                                                       For 

three months ended March, 31st,

                                                                            2022                  2021
Revenues:
Net earned premiums                                                    $    2,136.4          $   2,105.6
Fees and other income                                                         322.4                249.9
Net investment income                                                          86.3                 76.3

Net realized gains (losses) on investments and changes in fair value
equity securities

                                                             (62.4)                 0.8
Total revenues                                                              2,482.7              2,432.6
Benefits, losses and expenses:
Policyholder benefits                                                         494.5                528.7
Underwriting, selling, general and administrative expenses                  1,790.5              1,682.4

Interest expense                                                               26.9                 28.4

Total benefits, losses and expenses                                         2,311.9              2,239.5
Income before provision for income taxes                                      170.8                193.1
Provision for income taxes                                                     25.3                 44.6
Net income from continuing operations                                         145.5                148.5
Net income from discontinued operations                                           -                 14.3
Net income                                                                    145.5                162.8
Less: Net loss attributable to non-controlling interest                           -                  0.2
Net income attributable to stockholders                                       145.5                163.0
Less: Preferred stock dividends                                                   -                 (4.7)
Net income attributable to common stockholders                         $    

145.5 $158.3

For the three months ended March 31, 2022 Compared to the three months ended
March 31, 2021

Net income from continuing operations decreased $3.0 million, or 2%, to $145.5
million for First Quarter 2022 from $148.5 million for First Quarter 2021,
primarily driven by a decrease in net unrealized gains from changes in fair
value of equity securities mostly related to four equity positions that went
public in 2021 through SPAC mergers and preferred stocks given an increase in
interest rates. The decrease was also due to higher non-catastrophe loss
experience in Global Housing, primarily within our sharing economy offerings, as
well as Lender-placed Insurance. These decreases were partially offset by lower
reportable catastrophes, strong growth in Global Lifestyle driven by Connected
Living and Global Automotive results, as well as a $9.0 million one-time tax
benefit from one of our international businesses.

Discontinued operations

In August 2021, we completed the 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 (collectively, the "disposed Global
Preneed business") to subsidiaries of CUNA Mutual Group ("CUNA") for an
aggregate purchase price at closing of $1.34 billion. For additional
information, refer to Note 4 to the Consolidated Financial Statements included
elsewhere in this Report.

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Global Lifestyle

The table below presents information regarding the activities of the Global Lifestyle segment
operating results for the periods indicated:

                                                                      For 

three months ended March, 31st,

                                                                           2022                  2021
Revenues
Net earned premiums                                                   $    1,674.0          $   1,648.7
Fees and other income                                                        287.6                213.6

Net investment income                                                         57.0                 50.8
Total revenues                                                             2,018.6              1,913.1
Benefits, losses and expenses
Policyholder benefits                                                        303.3                327.4
Underwriting, selling, general and administrative expenses                 1,497.9              1,392.7
Total benefits, losses and expenses                                        1,801.2              1,720.1
Global Lifestyle Adjusted EBITDA                                      $     

217.4 $193.0

Net earned premiums, fees and other income:
Connected Living                                                      $    1,072.5          $   1,049.9
Global Automotive                                                            889.1                812.4
Total                                                                 $    1,961.6          $   1,862.3

Net earned premiums, fees and other income:
Domestic                                                              $    1,511.2          $   1,380.6
International                                                                450.4                481.7
Total                                                                 $    1,961.6          $   1,862.3

For the three months ended March 31, 2022 Compared to the three months ended
March 31, 2021

Adjusted EBITDA increased $24.4 million, or 13%, to $217.4 million for First
Quarter 2022 from $193.0 million for First Quarter 2021, primarily due to strong
results across Connected Living and Global Automotive. In Connected Living,
mobile increased primarily from device protection performance in North America
from carrier and cable operator clients, including more favorable loss
experience and subscriber growth, as well as an increase in global mobile
devices serviced, mainly from higher trade-in volumes. Global Automotive
increased from higher net investment income, favorable loss experience in select
ancillary products and expansion across all distribution channels.

Total revenues increased $105.5 million, or 6%, to $2.02 billion for First
Quarter 2022 from $1.91 billion for First Quarter 2021. Fees and other income
increased $74.0 million, or 35%, mainly driven by growth in our mobile business
from our recently launched service and repair capabilities and higher trade-in
volumes. Net earned premiums increased $25.3 million, or 2%, primarily driven by
continued organic growth from strong U.S. sales in our Global Automotive
business across all distribution channels and domestic mobile subscriber growth
within our cable operator distribution channel. The increase in net earned
premiums was partially offset by the runoff of certain global mobile programs.
Net investment income increased $6.2 million, or 12%, primarily due to higher
real estate related income, higher fixed maturity asset levels and higher
prepayment penalties for commercial mortgage loans on real estate.

Total benefits, losses and expenses increased $81.1 million, or 5%, to $1.80
billion for First Quarter 2022 from $1.72 billion for First Quarter 2021.
Underwriting, selling, general and administrative expenses increased $105.2
million, or 8%, primarily due to higher cost of sales in Connected Living from
our recently launched service and repair capabilities and higher trade-in
volumes. Higher commission expenses also contributed to the increase, mainly
from growth across our Global Automotive business and domestic mobile subscriber
growth within our cable operator distribution channel, which was partially
offset by the runoff of certain global mobile programs. Policyholder benefits
decreased $24.1 million, or 7%, primarily due to the runoff of certain global
mobile programs in our Connected Living business and favorable loss experience
within Global Automotive from select domestic ancillary products, partially
offset by growth across our Global Automotive and Connected Living businesses.

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Global housing

The table below provides information about the Global housing segment
operating results for the periods indicated:

                                                                      For 

three months ended March, 31st,

                                                                            2022                  2021
Revenues
Net earned premiums                                                   $       462.4          $     456.9
Fees and other income                                                          34.4                 36.1

Net investment income                                                          20.8                 19.4
Total revenues                                                                517.6                512.4
Benefits, losses and expenses
Policyholder benefits                                                         191.2                201.3
Underwriting, selling, general and administrative expenses                    222.6                217.6
Total benefits, losses and expenses                                           413.8                418.9
Global Housing Adjusted EBITDA                                        $     

103.8 $93.5

Impact of reportable catastrophes                                     $     

3.1 $43.6

Net earned premiums, fees and other income
Lender-placed Insurance                                               $       266.8          $     260.4
Multifamily Housing                                                           119.9                117.4
Specialty and Other                                                           110.1                115.2
Total                                                                 $       496.8          $     493.0

For the three months ended March 31, 2022 Compared to the three months ended
March 31, 2021

Adjusted EBITDA increased $10.3 million, or 11%, to $103.8 million for First
Quarter 2022 from $93.5 million for First Quarter 2021. Adjusted EBITDA for
First Quarter 2022 included $3.1 million of reportable catastrophes compared to
$43.6 million for First Quarter 2021. Excluding reportable catastrophes,
Adjusted EBITDA decreased $30.2 million, or 22%, driven by higher
non-catastrophe loss experience, including a $13.8 million increase within
sharing economy offerings primarily related to a reserve adjustment and adverse
development from policies previously written under less favorable terms.
Lender-placed Insurance also experienced higher non-catastrophe losses mainly
from elevated fire losses and an increase in claims costs, which were partially
offset by higher average insured values and premium rates.

Total revenues increased $5.2 million, or 1%, to $517.6 million for First
Quarter 2022 from $512.4 million for First Quarter 2021. Net earned premiums
increased $5.5 million, or 1%, primarily due to higher average insured values
and premium rates in our Lender-placed Insurance business, and continued growth
from renters insurance in our Multifamily Housing business. These increases were
partially offset by a decline in Specialty and Other from client run-off and
higher estimated catastrophe premium from exposure growth primarily in
Lender-placed Insurance.

Total benefits, losses and expenses decreased $5.1 million, or 1%, to
$413.8 million for First Quarter 2022 from $418.9 million for First Quarter
2021. Policyholder benefits decreased $10.1 million, or 5%, from lower
reportable catastrophe losses, partially offset by higher non-catastrophe loss
experience, as described above. Underwriting, selling, general and
administrative expenses increased $5.0 million, or 2%, mainly due to lower
reclassification of loss adjustment expenses to policyholder benefits due to
lower claims volume compared to First Quarter 2021 and higher operating costs
due to growth.

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Businesses and others

The tables below present information concerning the Corporate and other segment
operating results for the periods indicated:

                                                                For the 

Three months completed March, 31st,

                                                                      2022                  2021
Revenues
Net earned premiums                                             $           -          $         -
Fees and other income                                                     0.3                  0.1
Net investment income                                                     8.5                  6.1

Total revenues                                                            8.8                  6.2
Benefits, losses and expenses
Policyholder benefits                                                       -                    -
General and administrative expenses                                      31.0                 34.1
Total benefits, losses and expenses                                      31.0                 34.1
Corporate and Other Adjusted EBITDA                             $       

(22.2) $(27.9)

For the three months ended March 31, 2022 Compared to the three months ended
March 31, 2021

Adjusted EBITDA was $(22.2) million for First Quarter 2022 compared to $(27.9)
million for First Quarter 2021. The change in results was primarily due to lower
employee-related expenses and higher net investment income from higher invested
asset balances.

Total revenues increased $2.6 million, or 42%, to $8.8 million for First Quarter
2022 from $6.2 million for First Quarter 2021, primarily driven by net
investment income that increased by $2.4 million, or 39%, mostly due to higher
invested asset balances primarily reflecting the remaining proceeds from the
sale of Global Preneed.

Total profit, loss and expense decreased $3.1 millioni.e. 9%, to $31.0
million
for the first quarter of 2022 from $34.1 million for the first quarter of 2021, due to
reduction in staff costs.

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Investments

We had total investments of $8.22 billion and $8.67 billion as of March 31, 2022
and December 31, 2021, respectively. Net unrealized gains on our fixed maturity
securities portfolio decreased by $419.5 million during First Quarter 2022, from
$311.4 million as of December 31, 2021 to a net unrealized loss of $108.1
million as of March 31, 2022, primarily due to an increase in Treasury yields.

The following table shows the credit quality of our fixed maturity securities
portfolio on the dates indicated:

                                                                             Fair value as of
Fixed Maturity Securities by Credit Quality               March 31, 2022                           December 31, 2021
Aaa / Aa / A                                  $      3,879.2                 56.3  %       $  4,066.5                 56.4  %
Baa                                                  2,622.4                 38.1  %          2,719.0                 37.7  %
Ba                                                     299.4                  4.3  %            333.7                  4.6  %
B and lower                                             86.9                  1.3  %             96.1                  1.3  %
Total                                         $      6,887.9                100.0  %       $  7,215.3                100.0  %


The following table shows the major categories of net investment income for the
periods indicated:

                                                   Three Months Ended March 31,
                                                         2022                     2021
Fixed maturity securities                  $          62.3                      $ 57.4
Equity securities                                      3.7                         3.6
Commercial mortgage loans on real estate               3.9                         1.3
Short-term investments                                 0.5                         0.8
Other investments                                     17.2                        14.7
Cash and cash equivalents                              2.3                         1.6
Total investment income                               89.9                        79.4
Investment expenses                                   (3.6)                       (3.1)
Net investment income                      $          86.3                      $ 76.3


Net investment income increased $10.0 million, or 13%, to $86.3 million for
First Quarter 2022 from $76.3 million for First Quarter 2021, primarily driven
by higher invested assets in fixed maturity securities and commercial mortgage
loans on real estate and increases in Other investments related to higher sales
and valuations.

Net realized losses on investments and fair value changes to equity securities
were $62.4 million for First Quarter 2022 compared to net gains of $0.8 million
for First Quarter 2021. First Quarter 2022 was mostly due to $55.0 million of
net unrealized losses from changes in fair value of equity securities that were
driven by a $45.8 million decrease in net unrealized gains from four equity
positions that went public in 2021 through SPAC mergers and a $17.9 million
decrease in net unrealized gains from preferred stocks mostly related to an
increase in interest rates, partially offset by $10.0 million of unrealized
gains from an equity security accounted for under the measurement alternative in
connection with a market observable event that occurred in First Quarter 2022.
The net realized losses were also driven by a $21.5 million increase in net
realized losses on sales of fixed maturity securities that was partially offset
by a $10.9 million increase in net realized gains on sales of equity securities.

From March 31, 2022we owned $17.2 million securities guaranteed by
financial guarantee insurance companies. This amount included $13.7
million
municipal securities, whose credit rating was A+ with the guarantee,
but would have had an AA- rating without the guarantee.

For more information on our investments, see notes 7 and 8 of the consolidated appendix
Financial statements included elsewhere in this report.

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Cash and capital resources

Management believes that we will have sufficient liquidity to satisfy our needs
over the next twelve months, including the ability to pay interest on our debt
and dividends on our common stock.

Regulatory requirements

Assurant, Inc. is a holding company and, as such, has limited direct operations
of its own. Our assets consist primarily of the capital stock of our
subsidiaries. Accordingly, our future cash flows depend upon the availability of
dividends and other statutorily permissible payments from our subsidiaries, such
as payments under our tax allocation agreement and under management agreements
with our subsidiaries. Our subsidiaries' ability to pay such dividends and make
such other payments is regulated by the states and territories in which our
subsidiaries are domiciled. These dividend regulations vary from jurisdiction to
jurisdiction and by type of insurance provided by the applicable subsidiary, but
generally require our insurance subsidiaries to maintain minimum solvency
requirements and limit the amount of dividends these subsidiaries can pay to the
holding company. See "Item 1-Business-Regulation-U.S. Insurance Regulation" and
"Item 1A-Risk Factors-Legal and Regulatory Risks-Changes in insurance regulation
may reduce our profitability and limit our growth" in our 2021 Annual Report.
Along with solvency regulations, the primary driver in determining the amount of
capital used for dividends from insurance subsidiaries is the level of capital
needed to maintain desired financial strength ratings from A.M. Best Company
("A.M. Best"). For the year ending December 31, 2022, the maximum amount of
dividends our regulated U.S. domiciled insurance subsidiaries could pay us,
under applicable laws and regulations currently in effect and without prior
regulatory approval, is approximately $475.3 million. In addition, our
international and non-insurance subsidiaries provide additional sources of
dividends.

Regulators or rating agencies could become more conservative in their
methodology and criteria, increasing the capital requirements for our insurance
subsidiaries or the company.

investment company

As of March 31, 2022, we had approximately $737.6 million in holding company
liquidity, which was $512.6 million above our targeted minimum level of $225.0
million. The target minimum level of holding company liquidity, which can be
used for unforeseen capital needs at our subsidiaries or liquidity needs at the
holding company, is calibrated based on approximately one year of corporate
operating and interest expenses. We use the term "holding company liquidity" to
represent the portion of cash and other liquid marketable securities held at
Assurant, Inc., out of a total of $857.1 million of holding company investment
securities and cash, which we are not otherwise holding for a specific purpose
as of the balance sheet date. We can use such assets for stock repurchases,
stockholder dividends, acquisitions and other corporate purposes.

Dividends or returns of capital paid by our subsidiaries, net of infusions and
excluding amounts used for acquisitions or received for dispositions, were
$129.1 million for Three Months 2022. In 2021, dividends, net of infusions and
excluding amounts used for acquisitions or received for dispositions, were
$728.6 million (including approximately $12.0 million of dividends from
subsidiaries, net of infusions, included in the disposed Global Preneed
business). We use these cash inflows primarily to pay holding company operating
expenses, to make interest payments on indebtedness, to make dividend payments
to our common stockholders, to fund investments and acquisitions, and to
repurchase our common stock. From time to time, we may also seek to purchase
outstanding debt in open market repurchases or privately negotiated
transactions.

Dividends and redemptions

During three months of 2022, we completed common stock repurchases and paid for common stock
dividends from $279.8 million.

We paid dividends of $0.68 per ordinary share on March 21, 2022 to the shareholders of
save from February 28, 2022.

Any determination to pay future dividends on our outstanding common stock will
be at the discretion of the Board and will be dependent upon various factors,
including: our subsidiaries' payments of dividends and other statutorily
permissible payments to us; our results of operations and cash flows; our
financial condition and capital requirements; general business conditions and
growth prospects; any legal, tax, regulatory and contractual restrictions on the
payment of dividends; and any other factors the Board deems relevant. The Credit
Facility also contains limitations on our ability to pay dividends to our
stockholders and repurchase capital stock if we are in default, or such dividend
payments or repurchases would cause us to be in default, of our obligations
thereunder. In addition, if we elect to defer the payment of interest on our
7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 or our 5.25%
Subordinated Notes due January 2061 (refer to "-Senior and Subordinated Notes"
below), we generally may not make payments on or repurchase any shares of our
capital stock.

During Three Months 2022, we repurchased 1,480,000 shares of our outstanding
common stock at a cost of $242.4 million, exclusive of commissions. In May 2021,
the Board authorized a share repurchase program for up to $900.0 million,

                                       37

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respectively, of our outstanding common shares. From March 31, 2022, $599.7
million
the total purchase cost remained unused in the context of the redemption
permission. The timing and amount of future redemptions will depend on
various factors, including those listed above.

We expect to deploy capital primarily to support business growth by funding
investments, mergers and acquisitions and returning capital to shareholders in
the form of share repurchases and dividends, subject to Board approval and
market conditions. As previously announced, we intend to return $900.0 million
of the Global Preneed net proceeds through share repurchases within one year of
closing. Through March 31, 2022, we have completed approximately 85% of the
$900.0 million in share repurchases. For additional information, refer to Note 4
to the Consolidated Financial Statements included elsewhere in this Report.

Insurance subsidiaries

The primary sources of funds for our subsidiaries consist of premiums and fees
collected, proceeds from the sales and maturity of investments and net
investment income. Cash is primarily used to pay insurance claims, agent
commissions, operating expenses and taxes. We generally invest our subsidiaries'
excess funds in order to generate investment income.

We conduct periodic asset liability studies to measure the duration of our
insurance liabilities, to develop optimal asset portfolio maturity structures
for our significant lines of business and ultimately to assess that cash flows
are sufficient to meet the timing of cash needs. These studies are conducted in
accordance with formal company-wide Asset Liability Management guidelines.

To complete a study for a particular line of business, models are developed to
project asset and liability cash flows and balance sheet items under a large,
varied set of plausible economic scenarios. These models consider many factors
including the current investment portfolio, the required capital for the related
assets and liabilities, our tax position and projected cash flows from both
existing and projected new business. For risks related to modeling, see "Item 1A
- Risk Factors - Financial Risks -Actual results may differ materially from the
analytical models we use to assist in our decision-making in key areas such as
pricing, catastrophe risks, reserving and capital management." in our 2021
Annual Report.

Alternative asset portfolio structures are analyzed for significant lines of
business. An investment portfolio maturity structure is then selected from these
profiles given our return hurdle and risk appetite. Scenario testing of
significant liability assumptions and new business projections is also
performed.

Our liabilities generally have limited policyholder optionality, which means
that the timing of payments is generally insensitive to the interest rate
environment. In addition, our investment portfolio is largely comprised of
highly liquid fixed maturity securities with a sufficient component of such
securities invested that are near maturity which may be sold with minimal risk
of loss to meet cash needs.

Generally, our subsidiaries' premiums, fees and investment income, along with
planned asset sales and maturities, provide sufficient cash to pay claims and
expenses. However, there may be instances when unexpected cash needs arise in
excess of that available from usual operating sources. In such instances, we
have several options to raise needed funds, including selling assets from the
subsidiaries' investment portfolios, using holding company cash (if available),
issuing commercial paper, or drawing funds from the Credit Facility (as defined
below).

                                       38

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Senior and Subordinated Notes

The following table shows the capital and book value of our
the outstanding debt, less the unamortized discount and issue costs, if any,
of March 31, 2022 and December 31, 2021:

                                                          March 31, 2022                                 December 31, 2021
                                                Principal
                                                  Amount             Carrying Value          Principal Amount           Carrying Value

4.20% Senior Notes Due September 2023 $300.0 $

$299.1 $300.0 $299.0
4.90% Senior Notes Due March 2028

                   300.0                    297.5                     300.0                    297.5
3.70% Senior Notes due February 2030                350.0                    347.4                     350.0                    347.3
2.65% Senior Notes due January 2032                 350.0                    346.5                     350.0                    346.4
6.75% Senior Notes due February 2034                275.0                    272.4                     275.0                    272.4
7.00% Fixed-to-Floating Rate Subordinated
Notes due March 2048                                400.0                    396.1                     400.0                    395.9
5.25% Subordinated Notes due January 2061           250.0                    244.0                     250.0                    244.0
Total Debt                                                         $       2,203.0                                    $       2,202.5


In the next five years, we have one upcoming debt maturity in September 2023
when the 4.20% Senior Notes with an aggregate outstanding principal amount of
$300.0 million will become due and payable.

Credit facility and commercial paper program

We have a $500.0 million five-year senior unsecured revolving credit facility
(the "Credit Facility") with a syndicate of banks arranged by JPMorgan Chase
Bank, N.A. and Wells Fargo Bank, National Association. The Credit Facility
provides for revolving loans and the issuance of multi-bank, syndicated letters
of credit and letters of credit from a sole issuing bank in an aggregate amount
of $500.0 million, which may be increased up to $700.0 million. The Credit
Facility is available until December 2026, provided we are in compliance with
all covenants. The Credit Facility has a sublimit for letters of credit issued
thereunder of $50.0 million. The proceeds from these loans may be used for our
commercial paper program or for general corporate purposes.

We have not borrowed under the credit facility in three months of 2022 and no
loans were outstanding March 31, 2022.

Our commercial paper program requires us to maintain liquidity facilities either
in an available amount equal to any outstanding notes from the program or in an
amount sufficient to maintain the ratings assigned to the notes issued from the
program. Our commercial paper is rated AMB-1 by A.M. Best, P-3 by Moody's and
A-2 by S&P. Our subsidiaries do not maintain commercial paper or other borrowing
facilities. This program is currently backed up by the Credit Facility, of which
$495.5 million out of the $500.0 million was available as of March 31, 2022, due
to $4.5 million of letters of credit outstanding.

We did not use the commercial paper program during Three Months 2022 and there
were no amounts relating to the commercial paper program outstanding as of March
31, 2022.

                                       39

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Cash flow

We monitor cash flows at the level of the consolidated company, holding company and subsidiary
levels. Cash forecasts at consolidated and subsidiary level are
provided on a monthly basis, and we use trend and variance analyzes to project
future cash requirements by adjusting forecasts as needed.

The table below presents our net cash flows for the periods indicated:

                                                                    For the Three Months Ended March 31,
Net cash provided by (used in):                                           2022                  2021
Operating activities - continuing operations                        $      (501.1)         $    (468.3)
Operating activities - discontinued operations                                  -                 49.6
Operating activities                                                       (501.1)              (418.7)
Investing activities - continuing operations                                (13.3)                63.2
Investing activities - discontinued operations                                  -                (48.7)
Investing activities                                                        (13.3)                14.5
Financing activities - continuing operations                               (277.5)              (153.0)
Financing activities - discontinued operations                                  -                    -
Financing activities                                                       (277.5)              (153.0)

Effect of changes in exchange rates on cash and cash equivalents –
continuing operations

                                                        (4.1)                   -

Effect of changes in exchange rates on cash and cash equivalents –
interrupted operations

                                                         -                  0.2
Effect of exchange rate changes on cash and cash equivalents                 (4.1)                 0.2
Net change in cash                                                  $      (796.0)         $    (557.0)


We typically generate operating cash inflows from premiums collected from our
insurance products, fees received for services and income received from our
investments while outflows consist of policy acquisition costs, benefits paid
and operating expenses. These net cash flows are then invested to support the
obligations of our insurance products and required capital supporting these
products. Our cash flows from operating activities are affected by the timing of
premiums, fees, and investment income received and expenses paid.

Net cash used in operating activities from continuing operations was $501.1
million for Three Months 2022 compared to net cash used in operating activities
from continuing operations of $468.3 million for Three Months 2021. Net cash
used in operating activities for both First Quarter 2022 and First Quarter 2021
was driven by our mobile operations due to timing from both a reduction in
premium and fees collected during the period as well as an increase in payments
to various vendors for the acquisition of mobile devices used to meet insurance
claims or generate profits through sales to third parties. The increase in net
cash used in operations was impacted by the growth in our mobile business due to
expanded relationships and our recently launched service and repair
capabilities, partially offset by a reduction in commission payments also due to
timing. Net cash used in operations for First Quarter 2021 included certain
follow-on commission payments associated with fourth quarter 2020 premiums.

Net cash used in investing activities from continuing operations was $13.3
million for Three Months 2022 compared to net cash provided by investing
activities from continuing operations of $63.2 million for Three Months 2021.
The change in cash flows from investing activities was primarily driven by the
ongoing management of our investment portfolio. Additionally, net cash provided
by investing activities for First Quarter 2021 included a $60.1 million net cash
outflow for transfers from the disposal business to the continuing operations
related to investments that were not included in the sale.

Net cash used in financing activities from continuing operations was $277.5
million for Three Months 2022 compared to net cash used in financing activities
from continuing operations of $153.0 million for Three Months 2021. The increase
in net cash used in financing activities was mainly due to a $188.0 million
increase in share repurchases, mainly funded using the net proceeds from the
Global Preneed sale. This was partially offset by a $50.0 million repayment of
our Floating Rate Senior Notes due March 2021 in First Quarter 2021.

                                       40

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The table below shows our cash outflows for interest and dividends for the
periods indicated:

                                         For the Three Months Ended March 31,
                                                   2022                          2021
   Interest paid on debt       $             52.1                              $ 50.5
   Common stock dividends                    37.4                                38.2
   Preferred stock dividends                    -                                 4.7
   Total                       $             89.5                              $ 93.4


Letters of Credit

In the normal course of business, letters of credit are issued primarily to
support reinsurance arrangements in which we are the reinsurer. These letters of
credit are supported by commitments under which we are required to indemnify the
financial institution issuing the letter of credit if the letter of credit is
drawn. We had $7.2 million of letters of credit outstanding as of March 31, 2022
and December 31, 2021.

Off-balance sheet arrangements

The Company has no off-balance sheet arrangements that are reasonably
likely to have a significant impact on the financial situation, the results of
operations, liquidity or capital resources of the Company.

About Warren Dockery

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