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What changed in Assurant's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Assurant's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+473 added−493 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-20)

Top changes in Assurant's 2025 10-K

473 paragraphs added · 493 removed · 398 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

141 edited+36 added−39 removed81 unchanged
Biggest changeFor our 2024 catastrophe reinsurance program, we consolidated our main reinsurance purchases into a single placement date of April 2024. 2024 reinsurance premiums for the total program are estimated to be $188.9 million pre-tax, as of December 31, 2024, compared to $207.2 million pre-tax for 2023, reflecting impacts from changing the timing of program placement in this initial year of transition to a single placement date, as well as favorable underlying rates from improved reinsurance market conditions.
Biggest changeOur reinsurance program generally incorporates a provision to allow for the reinstatement of coverage, which provides protection against the risk of multiple catastrophes in a single year. 2025 reinsurance premiums for the total program were $203.2 million pre-tax, as of December 31, 2025, compared to $188.9 million pre-tax for 2024. 2025 reinsurance premiums reflected our exposure changes, expected Florida Hurricane Catastrophe Fund (“FHCF”) program impacts and favorable underlying rates from improved reinsurance market conditions. 2024 reinsurance premiums reflected a premium benefit from changing the timing of program placement to a single placement date.
Through our Global Lifestyle segment, we provide mobile device solutions, extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection services, commercial equipment services and other related services (referred to as “Global Automotive”).
Through our Global Lifestyle segment, we provide mobile device solutions, extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection services, commercial equipment protection and other related services (referred to as “Global Automotive”).
In Global Automotive, we partner with auto dealers and agents, third-party administrators, manufacturers, equipment retailers and large banks and financing companies to market our vehicle protection, commercial equipment-related products and other related services.
In Global Automotive, we partner with auto dealers and agents, third-party administrators, manufacturers, equipment retailers and large banks and financing companies to market our vehicle protection, commercial equipment products and other related services.
Patents are of varying duration depending on the filing date, and they will typically expire at the end of their natural term. The trademark registrations may be renewed indefinitely, subject to country-specific use and registration requirements.
Patents are of varying duration depending on the filing date, and they will typically expire at the end of their natural term. Trademark registrations may be renewed indefinitely, subject to country-specific use and registration requirements.
We use our website ( www.assurant.com ) and social media accounts, including X (formerly Twitter) ( @Assurant ), LinkedIn ( @Assurant ) and Facebook ( @Assurant ), as a means of disclosing information about us and our services and for complying with our disclosure obligations under the SEC’s Regulation FD (Fair Disclosure).
We use our website ( www.assurant.com ) and social media accounts, including LinkedIn ( @Assurant ), X (formerly Twitter) ( @Assurant ) and Facebook ( @Assurant ), as a means of disclosing information about us and our services and for complying with our disclosure obligations under the SEC’s Regulation FD (Fair Disclosure).
The information we post on our website and social media accounts may be deemed material. Accordingly, investors should monitor our website and social media accounts in addition to following our press releases, SEC filings, and public conference calls and webcasts.
The information we post on our website and social media accounts may be deemed material. Accordingly, investors should monitor our website and social media accounts in addition to following our SEC filings, press releases, and public conference calls and webcasts.
Available Information Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to such reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as the Statements of Beneficial Ownership of Securities on Forms 3, 4 and 5 for our directors and officers, are available free of charge through the SEC website at www.sec.gov .
Available Information Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to such reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as the Statements of Beneficial Ownership of Securities on Forms 3, 4 and 5 for our directors and applicable officers, are available free of charge through the SEC website at www.sec.gov .
For information on the risks associated with regulations applicable to us, see “Item 1A – Risk Factors – Business, Strategic and Operational Risks”, “Item 1A – Risk Factors – Technology, Cybersecurity and Privacy Risks” and “Item 1A – Risk Factors – Legal and Regulatory Risks.” Holding Company Insurance Regulations Under applicable insurance holding company regulations, no person may acquire a controlling interest in the Company or any of our insurance company subsidiaries, unless such person has obtained prior regulatory approval for such acquisition.
For information on the risks associated with regulations 13 applicable to us, see “Item 1A – Risk Factors – Business, Strategic and Operational Risks,” “Item 1A – Risk Factors – Technology, Cybersecurity and Privacy Risks” and “Item 1A – Risk Factors – Legal and Regulatory Risks.” Holding Company Insurance Regulations Under applicable insurance holding company regulations, no person may acquire a controlling interest in the Company or any of our insurance company subsidiaries, unless such person has obtained prior regulatory approval for such acquisition.
Competition in each business is based on a number of factors, including scope of products and services offered, ability to tailor products and services to client and consumer needs, product features and terms, pricing, technology offerings, diversity of distribution resources, brand recognition, costs, financial strength and ratings, resources, and quality of service, including speed of claims payment and the overall customer experience.
Competition in each business is based on a number of factors, including scope of products and services offered, ability to tailor products and services to client and customer needs, product features and terms, pricing, technology offerings, diversity of distribution resources, brand recognition, costs, financial strength and ratings, resources, and quality of service, including speed of claims payment and the overall customer experience.
For more information on our human capital resources, please refer to our most recent Sustainability Report available at https://www.assurant.com/our-story/sustainability and our most recent Proxy Statement available at ir.assurant.com . The information found on our website and in such reports is not incorporated by reference into and does not constitute a part of this Report.
For more information on our human capital resources, please refer to our most recent Sustainability Report available at https://www.assurant.com/sustainability and our most recent Proxy Statement available at ir.assurant.com . The information found on our website and in such reports is not incorporated by reference into and does not constitute a part of this Report.
We work closely with our global partners to develop innovative offerings that reflect the evolution of the auto market, such as Assurant Vehicle Care which represents a majority of dealer services contracts providing a comprehensive suite of enhanced vehicle protection products and a new digital experience for consumers.
We work closely with our global partners to develop innovative offerings that reflect the evolution of the auto market, such as Assurant Vehicle Care which represents a majority of dealer services contracts providing a comprehensive suite of enhanced vehicle protection products and digital experience for consumers.
In addition, we have a trademark portfolio that we consider important in the marketing of our products and services, including the “Assurant” brand name. 12 Over time, we have accumulated a sizeable portfolio of issued and registered intellectual property rights around the world, and we seek to protect it against infringement.
In addition, we have a trademark portfolio that we consider important in the marketing of our products and services, including the “Assurant” brand name. Over time, we have accumulated a sizeable portfolio of issued and registered intellectual property rights around the world, and we seek to protect it against infringement.
No single intellectual property right is solely responsible for protecting our products and services. We have also entered into agreements that permit other companies to use certain of our patents and trademarks. We believe the duration of our intellectual property rights is adequate relative to the expected lives of our products and services.
No single intellectual property right is solely responsible for protecting our 12 products and services. We have also entered into agreements that permit other companies to use certain of our patents and trademarks. We believe the duration of our intellectual property rights is adequate relative to the expected lives of our products and services.
While the FIO does not have general supervisory or regulatory authority over the business of insurance, the FIO director performs various functions with respect to insurance, including monitoring the insurance sector and representing the 15 U.S. on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors (“IAIS”).
While the FIO does not have general supervisory or regulatory authority over the business of insurance, the FIO director performs various functions with respect to insurance, including monitoring the insurance sector and representing the U.S. on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors (“IAIS”).
The Foreign Corrupt Practices Act of 1977 (the “FCPA”) regulates U.S. companies in their dealings with foreign officials and prohibits bribes and similar practices. In addition, the U.K. Anti-Bribery Act has wide applicability to certain activities that 16 affect U.K. companies, their commercial activities in the U.K., and potentially that of their affiliates located outside of the U.K.
The Foreign Corrupt Practices Act of 1977 (the “FCPA”) regulates U.S. companies in their dealings with foreign officials and prohibits bribes and similar practices. In addition, the U.K. Anti-Bribery Act has wide applicability to certain activities that affect U.K. companies, their commercial activities in the U.K., and potentially that of their affiliates located outside of the U.K.
The exposure management process is needed in order to underwrite the risk we assume, to understand loss exposure and to communicate with appropriate parties, including the lender, insurance agent and homeowner. Our placement rates reflect the ratio of insurance policies placed to tracked hazard loans.
The exposure management process is needed in order to underwrite the risk we assume, to understand loss exposure and to communicate with appropriate parties, including the lender, insurance agent and homeowner. Our placement rates reflect the ratio of insurance policies placed to tracked loans.
Risk Appetite, Identification and Assessment, Monitoring and Reporting, and Mitigation 18 Risk appetite defines the levels, types, and amount of risk that the Company is willing to accept in the pursuit of its business and strategic objectives, consistent with prudent management of risk concomitant with available levels of capital.
Risk Appetite, Identification and Assessment, Monitoring and Reporting, and Mitigation Risk appetite defines the levels, types and amount of risk that the Company is willing to accept in the pursuit of its business and strategic objectives, consistent with prudent management of risk concomitant with available levels of capital.
The information found on our website and in such reports is not incorporated by reference into and does not constitute a part of this Report. Segments The composition of our reportable segments aligns with how we view and manage our business.
The information found on our website and in such report is not incorporated by reference into and does not constitute a part of this Report. Segments The composition of our reportable segments aligns with how we view and manage our business.
This mindset has led us to become an industry leader in the transition effort from a linear to a circular economy for mobile devices including our approach to responsible recycling. Protected Planet.
This mindset has led us to become an industry leader in the transition from a linear to a circular economy for mobile devices, including our approach to responsible recycling. Protected Planet.
Our strategy is to provide integrated service solutions to our clients that address all aspects of the insurance or extended service contract, including program design and marketing strategy, risk management, data analytics, customer support and claims handling, supply chain services, service delivery and repair and logistics management, while ensuring exceptional customer experience measured through our net promoter scores.
Our strategy is to provide integrated service solutions to our clients that address all aspects of the insurance or extended service contract, including program design and marketing strategy, regulatory filings, risk management, data analytics, customer support and claims handling, supply chain services, service delivery and repair and logistics management, while ensuring exceptional customer experience measured through our net promoter scores.
Typically, these agreements have terms of three to five years and allow us to integrate our systems with those of our clients. Renters products are distributed primarily through property management companies and affinity marketing partners. We offer our voluntary insurance programs primarily through manufactured housing lenders and retailers, 8 along with independent specialty agents.
Typically, these agreements have terms of three to five years and allow us to integrate our systems with those of our clients. Renters products are distributed primarily through property management companies and affinity marketing partners. We offer our voluntary insurance programs primarily through manufactured housing lenders and builders, 8 along with our affinity partners and independent specialty agents.
We own or manage multiple pieces of the value chain, which enables us to create products and service offerings based on client and consumer needs and provide a seamless customer experience. Offering end-to-end solutions allows us to provide additional value for consumers and adapt more quickly and efficiently to their needs.
Value chain and technology integration and customer experience. We own or manage multiple pieces of the value chain, which enables us to create products and service offerings based on client and consumer needs and provide a seamless customer experience. Offering end-to-end solutions allows us to provide additional value for consumers and adapt more quickly and efficiently to their needs.
The Board, through the Compensation and Talent Committee, oversees the significant human capital management programs of Assurant, which are led by Assurant’s Chief Executive Officer (“CEO”), its Chief Operating Officer and its Chief People Officer. Attracting, developing and retaining the best talent globally is key to our success in sustaining long-term profitable growth.
The Board, through the Compensation and Talent Committee, oversees the significant human capital management programs of Assurant, which are led by Assurant’s Chief Executive Officer (“CEO”) and Chief People Officer. Attracting, developing and retaining the best talent globally is key to our success in sustaining long-term profitable growth.
For information on the risks associated with ratings downgrades, see “Item 1A – Risk Factors – Financial Risks – A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition. ” The following table summarizes the financial strength ratings and outlooks of our domestic operating insurance subsidiaries as of December 31, 2024: A.M.
For information on the risks associated with ratings downgrades, see “Item 1A – Risk Factors – Financial Risks – A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition. ” The following table summarizes the financial strength ratings and outlooks of our domestic operating insurance subsidiaries as of December 31, 2025: A.M.
We do this by focusing on creating an inclusive workplace where employees have opportunities to learn and grow; supporting communities through investing our time, skills and resources where needed; and creating superior experiences for our customers. For additional information, refer to “– Human Capital Resources” below. Respected Resources.
We do this by focusing on creating an inclusive culture where employees have opportunities to learn and grow; supporting communities through investing our time, skills and resources where needed; and creating superior experiences for our customers. For additional information, refer to “– Human Capital Resources” below. Respected Resources.
The Enterprise Risk Committee reviews the Company’s key enterprise risks, sets and monitors risk appetite, and oversees mitigation and remediation plans. Board of Directors and Committee Oversight The Board, directly and through its committees as described in their charters, oversees our risk management policies and practices, including our risk appetite, and discusses risk-related issues at least quarterly.
The Enterprise Risk Committee reviews the Company’s key enterprise risks, sets and monitors risk appetite, and oversees mitigation and remediation plans. Board of Directors and Committee Oversight The Board, directly and through its committees as described in their charters, oversees our risk management framework and practices, including our risk appetite, and discusses risk-related issues at least quarterly.
Global Risk Management, in conjunction with various risk committees, develops recommendations for risk limits as part of our risk appetite framework. Using metrics as appropriate in establishing these risk limits allows for a cohesive assessment of risk, resources, and strategy, and supports management and the Board in making well-informed business decisions.
Global Risk Management, in conjunction with various risk committees, develops recommendations for risk limits as part of our ERM Framework. Using metrics as appropriate in establishing these risk limits allows for a cohesive assessment of risk, resources and strategy, and supports management and the Board in making well-informed business decisions.
Our Strategy for Profitable Growth As we focus on executing our strategy, we believe we are positioned for continued long-term profitable growth by: Growing our portfolio of market-leading businesses . Our businesses represent a group of leading, protection and service-oriented offerings focused on compelling growth opportunities in attractive markets.
Our Strategy for Profitable Growth As we focus on executing our strategy, we believe we are positioned for continued long-term profitable growth by: Growing our portfolio of market-leading businesses . Our businesses represent a group of leading, protection and service-oriented offerings focused on compelling growth opportunities in specialized markets.
For additional risks relating to our Global Housing segment, please see “Item 1A – Risk Factors”, including “– Financial Risks – We may be unable to accurately predict and price for claims and other costs, which could reduce our profitability ” and “ – 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 ” therein.
For additional risks relating to our Global Housing segment, please see “Item 1A – Risk Factors,”, including “– Financial Risks – We may be unable to accurately predict and price for claims and other costs, which could reduce our profitability ” and “ – 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 ”.
Our global workforce spans a wide range of roles and skills. While 75% of our employee base was located in North America, we continued to expand our presence in key international markets across Europe, Latin America and Asia Pacific to support our increasingly global client portfolio.
Our global workforce spans a wide range of roles and skills. While 72% of our employee base was located in North America, we continued to expand our presence in key international markets across Europe, Latin America and Asia Pacific to support our increasingly global client portfolio.
The process of tracking voluntary coverage - including determining whether voluntary coverage is in force, the policy limits in place, the perils insured and the deductibles, and obtaining other required insurance related information - is part of our risk exposure management for our lender-placed insurance business.
The process of tracking voluntary coverage – including determining whether voluntary coverage is in force, the policy limits in place, the perils insured and the deductibles, as well as obtaining other required insurance related information – is part of our risk exposure management for our lender-placed insurance business.
Our Total Rewards programs help to provide protection and security related to events that may require time away from work or that impact their financial wellbeing, such as paid time off, family leave, family care resources and flexible work schedules.
Our Total Rewards programs, such as paid time off, family leave, family care resources and flexible work schedules help provide protection and security related to events that may require time away from work or that impact employee financial wellbeing.
Fostering an Inclusive and Performance Driven Culture Building an inclusive culture is more than the right thing to do - it’s a business imperative - a key enabler of growth and innovation, rooted in our belief that more inclusive teams deliver stronger performance.
Fostering a Globally Inclusive Culture Building an inclusive culture is more than the right thing to do - it’s a business imperative - a key enabler of growth and innovation, rooted in our belief that more globally inclusive teams deliver stronger performance.
We strategically recruit talent with different expertise, experiences, and perspectives necessary to deliver on our long-term strategies, including through strategic and educational partnerships that bring greater visibility and expertise.
We strategically recruit talent with different skillsets, experiences, backgrounds, and perspectives necessary to deliver on our long-term strategies, including through strategic and educational partnerships that bring greater visibility and expertise.
These regulations, which vary depending on the jurisdiction, include, among others, anti-corruption laws; solvency and market conduct regulations; various privacy, insurance, tax, tariff and trade laws and regulations; and corporate, employment, intellectual property and investment laws and regulations.
These regulations, which vary depending on the jurisdiction, include anti-corruption laws; solvency and market conduct regulations; various privacy, insurance, tax, tariff and trade laws and regulations; and corporate, employment, intellectual property and investment laws and regulations.
This includes ongoing investments in competitive total rewards and wellbeing offerings, and providing programs for learning, development and engagement, while continuously enhancing the experience of our employees who are critical to our long-term success. As of December 31, 2024, Assurant had approximately 14,200 employees representing, more than 80 nationalities, with a presence in 21 markets globally.
This includes ongoing investments in competitive total rewards and wellbeing offerings, and providing programs for learning, development and engagement, while continuously enhancing the experience of our employees who are critical to our long-term success. As of December 31, 2025, Assurant had approximately 14,800 employees, representing more than 80 nationalities, with a presence in 21 markets globally.
For example, we provide end-to-end mobile device lifecycle solutions in our mobile business from when the device is received and inspected, repaired or refurbished, to when it is ultimately disposed of through a sale to a third-party or used to support an insurance claim.
In our mobile business, we provide end-to-end mobile device lifecycle solutions from when the claim is filed through when the device is received and inspected, repaired or refurbished, to when it is ultimately disposed of through a sale to a third-party or used to support an insurance claim.
We believe in fostering an inclusive and performance-based culture to drive sustained profitable growth through innovation. We regularly evaluate our policies, practices and programs to ensure we continue to attract, develop and retain the best talent to support our strategy.
We believe in fostering a globally inclusive and performance-based culture to drive sustained profitable growth through innovation. We regularly evaluate our policies, practices and programs to ensure we continue to attract, develop and retain the best talent to support our strategy.
However, the value of certain inventory could be adversely impacted by technological changes affecting the usefulness or desirability of the devices and parts, physical problems resulting from faulty design or manufacturing, increased competition, decreased consumer demand, including due to changes in customer preferences and changes in client promotions, supply chain constraints, growing industry emphasis on cost containment and adverse foreign trade relationships.
However, the value of certain inventory could be adversely impacted by technological changes affecting the usefulness or desirability of the devices and parts, physical problems resulting from faulty design or manufacturing, increased competition, decreased consumer demand, including due to changes in customer preferences, changes in client promotions and seasonality, changes in client forecasts and demand, supply chain constraints and our ability to manage inventory, growing industry emphasis on cost containment and adverse foreign trade relationships.
Internal Audit evaluates the effectiveness and adequacy of the Company’s control environment and other components of our governance system, including compliance with policies, procedures, and processes established in the first and second lines, and assesses the design and ongoing effectiveness of risk management and the risk management framework.
IAAS evaluates the effectiveness and adequacy of the Company’s control environment and other components of our governance system, including compliance with policies, procedures and processes established in the first and second lines, and assesses the design and ongoing effectiveness of risk management and the risk management framework.
In Connected Living, we partner with mobile service providers (including carriers, retailers, OEMs and cable operators) and financial and other institutions to market our mobile device solutions, with some of the largest OEMs, consumer electronics retailers, appliance retailers (including e-commerce retailers) and cable operators to market our extended service contracts and related services, and with financial institutions, insurers and retailers to market our credit and other insurance products.
In Connected Living, we partner with the mobile eco-system (including carriers, retailers, OEMs and cable MSOs) and financial and other institutions to market our mobile device solutions, with some of the largest OEMs, consumer electronics retailers, appliance retailers (including e-commerce retailers) and cable operators to market our extended service contracts and related services, and with financial institutions, insurers and retailers to market our credit and other insurance products.
Distribution and Clients Global Lifestyle operates globally, with approximately 82.1% of its revenue from North America (the U.S. and Canada), 7.5% from Latin America (Brazil, Argentina, Puerto Rico, Mexico, Chile, Colombia and Peru), 5.9% from Europe (the United Kingdom (the “U.K.”), France, Italy, Spain, Germany and the Netherlands) and 4.5% from Asia Pacific (Japan, Australia, New Zealand, South Korea, India, Singapore and Hong Kong for the year ended December 31, 2024).
Distribution and Clients Global Lifestyle operates globally, with approximately 80.7% of its revenue from North America (the U.S. and Canada), 7.7% from Latin America (Brazil, Argentina, Puerto Rico, Mexico, Chile, Colombia and Peru), 5.9% from Europe (the United Kingdom (the “U.K.”), France, Italy, Spain, Germany and the Netherlands) and 5.7% from Asia Pacific (Japan, Australia, New Zealand, South Korea, India, Singapore and Hong Kong for the year ended December 31, 2025).
When combined with the Florida Hurricane Catastrophe Fund, the U.S. program protects against gross Florida losses of up to approximately $1.69 billion, in excess of retention. We are also subject to non-catastrophe risk from isolated fire, water and wind damage, theft and vandalism, as well as general liability in renters and homeowners policies.
When combined with the FHCF, the U.S. program protects against gross Florida losses of up to approximately $1.98 billion, in excess of retention. We are also subject to non-catastrophe risk from isolated fire, water and wind damage, theft and vandalism, as well as general liability in renters and homeowners policies.
Ratings of A (strong) are within the third highest of S&P’s nine ratings categories. S&P has a stable outlook on all of our domestic operating insurance subsidiaries’ insurer financial strength ratings. 13 Regulation We are subject to extensive federal, state and international regulation and supervision in the jurisdictions in which we do business. Regulations vary from jurisdiction to jurisdiction.
Ratings of A (strong) are within the third highest of S&P’s nine ratings categories. S&P has a stable outlook on all of our domestic operating insurance subsidiaries’ insurer financial strength ratings. Regulation We are subject to extensive federal, state and international regulation and supervision in the jurisdictions in which we do business.
The Compensation & Talent Committee annually reviews the CEO succession plan and succession plans for senior executives, which includes emergency successors for each role, and conducts a broader talent review with the goal to ensure we have the right leadership in place to execute the Company’s long-term strategic plans.
The Compensation and Talent Committee annually reviews the CEO succession plan and succession plans for senior executives, which include emergency successors for each role, and conducts a broader talent review with the goal of ensuring we have the right leadership in place to execute the Company’s long-term strategic plans.
In order to enhance the regulation of insurer solvency, the National Association of Insurance Commissioners (the “NAIC”) has established certain risk-based capital (“RBC”) standards applicable to life, health and property and casualty insurers. RBC, which regulators use to assess the sufficiency of an insurer’s statutory capital, is calculated by applying factors to various asset, premium, expense, liability and reserve items.
In order to enhance the regulation of insurer solvency, the National Association of Insurance Commissioners (the “NAIC”) has established certain risk-based capital (“RBC”) standards. RBC, which regulators use to assess the sufficiency of an insurer’s statutory capital, is calculated by applying factors to various asset, premium, expense, liability and reserve items.
Due to our capabilities, including device protection, premium technology support, service delivery and financing, as well as technology components such as dynamic fulfillment, which integrates a dynamic mobile claims management process with risk and fraud mitigation, we are well positioned to support customers as the smart home market continues to grow.
Due to our capabilities, including device protection, premium technology support, service delivery networks and financing, as well as technology components such as dynamic fulfillment, which integrates a dynamic mobile claims management process with risk and fraud mitigation, resulting in higher customer satisfaction, we are well positioned to support customers as the smart home market continues to grow.
For additional risks relating to our Global Lifestyle segment, please see “Item 1A – Risk Factors.” Inventory In our mobile business, we carry inventory to meet the delivery requirements of certain clients. These devices are ultimately disposed of through sales to third parties.
For additional risks relating to our Global Lifestyle segment, please see “Item 1A – Risk Factors.” Inventory In our mobile business, we carry inventory to meet the delivery requirements of certain clients. These devices are ultimately disposed of through sales to third parties or used to support an insurance claim.
Lender-placed flood insurance is issued after an insurance tracking and exposure management process similar to that described above. Voluntary insurance. We offer voluntary manufactured housing, condominium and homeowners insurance. Our voluntary insurance products generally provide structural, contents and liability coverage. Renters and Other: We provide renters insurance and other products, as described below. Renters insurance.
Lender-placed flood insurance is issued after an insurance tracking and exposure management process similar to that described above. Voluntary insurance. We offer voluntary manufactured housing, condominium and homeowners insurance in select states in the U.S. Our voluntary insurance products generally provide structural, contents and liability coverage. Renters and Other: We provide renters insurance and other products, as described below.
Anti-bribery and corruption laws and regulations continue to be implemented and/or enhanced across most of the jurisdictions in which we operate. Cybersecurity, Privacy Regulation and Artificial Intelligence We are subject to a variety of laws and regulations in the U.S. and abroad regarding privacy, data protection and data security. These laws and regulations are continuously evolving and developing.
Anti-bribery and corruption laws and regulations continue to be implemented and/or enhanced across most of the jurisdictions in which we operate. Privacy, Data Protection, Cybersecurity and Artificial Intelligence We are subject to a variety of laws and regulations in the U.S. and abroad regarding privacy, data protection and data security, and these requirements continue to evolve.
We continued our ongoing real estate consolidation to support work-from-home arrangements given our increasingly hybrid workforce, while making necessary investments in key facilities (such as our Nashville Innovation and Device Care Center) and markets to support the long-term strategy of the Company. Learning and Development Learning and development are essential to Assurant’s success.
We continued our ongoing real estate consolidation to support work-from-home arrangements given our increasingly hybrid workforce, while investing in key facilities (such as our Nashville Innovation and Device Care Center that opened in 2024) and markets to support the long-term strategy of the Company. Learning and Development Learning and development are essential to Assurant’s success.
We believe there is opportunity to increase our market share and attachment rates with new and existing clients through our investments in digital platforms designed to deliver superior customer experience and our expanded offerings to provide end-to-end solutions. Risk Management We earn premiums on our insurance products and fees for our services.
We acquired a new renters book in 2025 and believe there is opportunity to increase attachment rates with new and existing clients through our investments in digital platforms designed to deliver superior customer experience and our expanded offerings to provide end-to-end solutions. Risk Management We earn premiums on our insurance products and fees for our services.
Visibility across the value chain helps us further improve the customer experience and our offerings. Our ability to introduce value-added services and capabilities across the value chain and provide a superior customer experience allows us to strengthen our partnerships and our competitive position.
Visibility across the value chain and integrating our technology with clients helps us further improve the customer experience and our offerings. Our ability to introduce value-added services and capabilities across the value chain, integrate our technology and provide a superior customer experience allows us to strengthen our partnerships and our competitive position.
Risk identification and assessment are performed by Global Risk Management and conducted in coordination with the second and third lines of defense. Risks are classified using an enterprise-wide risk taxonomy. Risk reporting provides tracking of each risk. Risk identification and assessment process feeds into reporting and serves to escalate any elevated or emerging risks for review and action.
Risk identification and assessment are performed by Global Risk Management and conducted in coordination with the first line and Compliance. Risks are classified using an enterprise-wide risk taxonomy. Risk reporting provides tracking of each risk. The risk identification and assessment process feeds into reporting and serves to escalate any elevated or emerging risks for review and action.
To further promote wellbeing, Assurant continued to expand the reach of its Personify Health (formerly known as Virgin Pulse) global wellbeing platform allowing employees to personalize their unique wellbeing goals with access to tools, activities and ways to stay engaged and accountable for building healthy habits.
To further promote wellbeing, Assurant continued to expand the reach of its Personify Health global wellbeing platform allowing employees to personalize their unique wellbeing goals with access to tools and activities to stay engaged and accountable for building healthy habits.
We generally deploy capital to support business growth by funding investments and through acquisitions, to pay dividends and to repurchase shares. We target new businesses and capabilities, organically and through acquisitions, that complement or accelerate our strategy. Our approach to mergers, acquisitions and other growth opportunities reflects our strategic and disciplined approach to capital management. 3 Investing in talent.
We generally deploy capital to support business growth by funding investments and through acquisitions, to pay dividends and to repurchase shares. We target new businesses and capabilities, organically and through acquisitions, that complement or accelerate our strategy, including in adjacent markets. Our approach to acquisitions and other growth opportunities reflects our strategic and disciplined approach to capital management.
For VSCs, we pay the cost of repairing a customer’s vehicle in the event of mechanical breakdown. For ancillary products, including relating to commercial and other leased or financed equipment, coverage varies, but, generally, we pay the cost of repairing, servicing or replacing parts or provide other financial compensation in the event of mechanical breakdown, accidental damage or theft.
For ancillary products, including guaranteed asset protection products and other products relating to commercial and other leased and financed equipment, coverage varies, but, generally, we pay the cost of repairing, servicing or replacing parts or provide other financial compensation in the event of mechanical breakdown, accidental damage or theft.
The turnover rate for both frontline and managerial employees improved by 2 and 1 percentage points, respectively, year-over-year (1) . Overall, this is attributed to ongoing actions to identify and remediate talent risks and enhance the employee experience as well as stabilization in key labor markets.
Year-over-year, the turnover rate for frontline employees improved by 3 percentage points, while the turnover rate for managerial employees remained unchanged. 2 Overall, this is attributed to ongoing actions to identify and remediate talent risks and enhance the employee experience, as well as stabilization in key labor markets.
Throughout the year, we have maintained a strong balance sheet, generating $804.7 million in dividends or returns of capital from our subsidiaries (net of infusions of liquid assets and excluding amounts used for acquisitions or received from dispositions) and returning $455.8 million to shareholders through share repurchases and common stock dividends.
Throughout the year, we have maintained a strong balance sheet, generating $925.1 million in dividends or returns of capital from our subsidiaries (net of infusions of liquid assets and excluding amounts used for acquisitions or received from dispositions) and returning $468.3 million to shareholders through share repurchases and common stock dividends.
We also provide risk management solutions tailored for commercial and leased equipment where our core products include insurance tracking and physical damage insurance.
We also provide risk management solutions tailored for commercial equipment lenders where our core products include insurance tracking, physical damage insurance and service contracts.
The U.S. per-occurrence catastrophe coverage included a main reinsurance program providing $1.48 billion of coverage in excess of a $150.0 million retention for a first event. Layers 1 through 7 of the program allow for one automatic reinstatement.
The U.S. per-occurrence catastrophe coverage included a main reinsurance program providing $1.76 billion of coverage in excess of a $160.0 million retention for a first event. Layers 1 through 6 of the program allow for one automatic reinstatement.
Catastrophe events such as hurricanes typically occur in the second half of the year, and may increase in frequency and severity due to climate change. We also experience some seasonal fluctuation in non-catastrophe weather-related claims that tend to occur in the first half of the year. 9 Competition Our businesses focus on supporting, protecting and connecting major consumer purchases.
Catastrophe events such as hurricanes typically occur in the second half of the year. We also experience some seasonal fluctuation in non-catastrophe weather-related claims that tend to occur in the first half of the year. Competition Our businesses focus on supporting, protecting and connecting major consumer purchases.
We believe this will create long-term opportunities for Assurant as consumers’ lifestyles will increasingly intertwine with their connected ecosystems, which we call the connected world.
We believe this will create long-term opportunities for Assurant as consumers’ lifestyles will increasingly intertwine with their connected ecosystems.
Since the enactment of EU General Data Protection Regulation (“GDPR”), multiple countries where we conduct business have or are in the process of enacting comprehensive data protection laws that largely model GDPR. In the United States, we are subject to a variety of federal and state privacy and data security laws and regulations.
Since the enactment of EU General Data Protection Regulation (“GDPR”), multiple countries where we conduct business have enacted or are in the process of implementing GDPR-influenced data protection laws. In the United States, we are subject to a variety of federal and state privacy and data security laws and regulations.
We provide integrated solutions across the resident lifecycle. We offer renters insurance for a wide variety of single and multi-family rental properties, providing content protection for renters’ personal belongings and liability protection for the property owners against renter-caused damage. We also offer an integrated billing and tracking platform for our clients and their customers.
Renters insurance. We provide integrated solutions across the resident lifecycle. We offer renters insurance for a wide variety of single and multi-family rental properties, providing content protection for renters’ personal belongings and liability protection for the property owners against renter-caused damage.
In the marketplace, we support digital inclusion, STEM and thriving communities through the Assurant Foundation and we partner with nonprofit organizations to provide leadership development opportunities. Fair Pay Assurant is committed to fair pay. Our compensation practices and programs consider a variety of factors designed to set fair compensation levels.
In the marketplace, we support digital inclusion, STEM and thriving communities through the Assurant Foundation. Fair Pay Assurant is committed to fair pay. Our compensation practices and programs consider a variety of factors designed to set fair compensation levels.
Global Housing Years Ended December 31, 2024 2023 2022 Net earned premiums, fees and other income by product: Homeowners $ 1,958.9 $ 1,663.4 $ 1,402.2 Renters and Other 498.1 479.5 482.4 Total $ 2,457.0 $ 2,142.9 $ 1,884.6 Segment Adjusted EBITDA $ 671.2 $ 574.2 $ 246.0 Segment equity (1) $ 1,597.8 $ 1,318.9 $ 1,272.8 (1) Segment equity does not include components of AOCI, which is primarily comprised of net unrealized gains/ losses on securities, net of taxes.
Global Housing Years Ended December 31, 2025 2024 2023 Net earned premiums, fees and other income by product: Homeowners $ 2,192.4 $ 1,958.9 $ 1,663.4 Renters and Other 576.4 498.1 479.5 Total $ 2,768.8 $ 2,457.0 $ 2,142.9 Segment Adjusted EBITDA $ 858.7 $ 671.2 $ 574.2 Segment equity (1) $ 1,659.3 $ 1,597.8 $ 1,318.9 (1) Segment equity does not include components of AOCI, which is primarily comprised of net unrealized gains/ losses on securities, net of taxes.
As we continue to evolve our product and service capabilities and respond to client and consumer needs, we expect ongoing innovation of our integrated offerings, leveraging data-driven insights, technology and AI to deliver additional value through a superior customer experience. Deploying our capital strategically. Our strong financial position provides us with flexibility to strategically deploy our capital.
As we continue to evolve our product and service capabilities and respond to client and consumer needs, we expect ongoing innovation of our integrated offerings, leveraging data-driven insights, technology, robotics and AI to deliver additional value for our clients and their customers. 3 Deploying our capital strategically. Our strong financial position provides us with flexibility to strategically deploy our capital.
Insights and capabilities enable innovation to meet evolving consumer needs. We have a deep understanding of our clients and the consumer markets they serve. We seek to leverage consumer insights, together with extensive capabilities, to identify and anticipate the needs of our clients and the consumers they serve.
We have deep partnerships with and an understanding of our clients and the consumer markets they serve. We seek to leverage consumer insights, together with extensive capabilities, to identify and anticipate the needs of our clients and the consumers they serve.
We regularly engage with our employees to seek feedback through an array of forums and channels, including one-on-one discussions with managers, interactive townhall meetings, employee surveys and our enterprise-wide listening program 10 designed to expand opportunities for anonymous, real-time feedback between managers and employees. Key topics covered include our culture, learning and development, compensation, benefits, wellbeing and recognition.
We regularly engage with our employees to gather feedback through multiple forums and channels, including one-on-one discussions with managers, interactive town halls, employee surveys and our enterprise-wide listening program. The program is designed to expand opportunities for anonymous, real-time feedback between managers and employees. Key topics covered include culture, learning and development, compensation, benefits, wellbeing and recognition.
This includes oversight of cybersecurity policies, controls, and procedures, such as procedures to identify and assess internal and external cybersecurity risks. The Information Technology Committee receives updates from management, including the Chief Information Security Officer, on internal and external cybersecurity risks at least quarterly. In fulfilling its responsibilities, the Board and each committee have the authority to retain external advisors.
The Information Technology Committee receives updates from management, including the Chief Information Security Officer, on internal and external cybersecurity risks at least quarterly. In fulfilling its responsibilities, the Board and each committee have the authority to retain external advisors.
The relative importance of these factors varies by product and market. To remain competitive in many of our businesses, we must also anticipate and respond effectively to changes in customer preferences, new industry standards, evolving distribution models, disruptive technology developments and alternate business models.
To remain competitive in many of our businesses, we must anticipate and respond effectively to changes in customer preferences, new industry standards, evolving distribution models, disruptive technology developments and alternate business models.
Global Lifestyle is dependent on a few clients, in particular mobile service providers, and a reduction in business with or the loss of one or more such clients could have a material adverse effect on our results of operations and cash flows.
A reduction in business with or the loss of one or more such clients could have a material adverse effect on our results of operations and cash flows.
Consumer needs relating to mobile devices are continuing to expand in scope. We believe there are growth opportunities in bundled protection products, which support customers as they take full advantage of the features and functions of their mobile devices through their daily interaction with a connected world.
We believe there are growth opportunities in bundled protection products, which support customers as they take full advantage of the features and functions of their mobile devices through their daily interaction.
In addition, various forms of direct and indirect federal regulation of insurance have been proposed from time to time, including proposals for the establishment of an optional federal charter for insurance companies.
Impacted areas include financial services regulation, privacy, tort reform legislation and taxation. In addition, various forms of direct and indirect federal regulation of insurance have been proposed from time to time, including proposals for the establishment of an optional federal charter for insurance companies.
Our risk management framework cascades downwards into the enterprise through various management risk committees. Our risk governance structure is headed by the Enterprise Risk Committee, comprised of the CEO, the Chief Financial Officer, the CMRO, other members of the Management Committee, as well as the Treasurer, the Chief Internal Auditor, and the Global Ethics and Compliance Officer.
Our risk governance structure is headed by the Enterprise Risk Committee, comprised of the CEO, the Chief Financial Officer, the Chief Strategy and Transformation Officer, other members of the Management Committee, as well as the CRO, the Treasurer, the Chief Internal Auditor, and the Global Chief Ethics and Compliance Officer.
While the Consumer Financial Protection Bureau (the “CFPB”) does not have direct jurisdiction over insurance products, it is possible that additional regulations promulgated by the CFPB may extend its authority more broadly to cover these products and others we offer and thereby affect us or our clients.
These requirements affect our operations because, in many instances, we administer such operations on behalf of our mortgage servicer clients. While the Consumer Financial Protection Bureau (the “CFPB”) does not have direct jurisdiction over insurance products, it is possible that additional regulations promulgated by the CFPB may extend its authority more broadly to cover these products and others we offer.
Global risk management is the responsibility of the Chief Marketing and Risk Officer (“CMRO”), who leads the Global Risk Management function. The CMRO reports directly to the CEO, reports at least quarterly to the Finance and Risk Committee of the Board and reports at least annually to the Board.
Global risk management is the responsibility of the Chief Risk Officer (the “CRO”), who leads the Global Risk Management function, which reports to the Enterprise Risk Committee and to the Finance and Risk Committee of the Board. The CRO reports at least quarterly to the Finance and Risk Committee of the Board and reports at least annually to the Board.
We expect to continue to assess compensation practices annually and remain committed to remediate any significant pay disparities we may discover. We also continue to monitor and adjust market wages as necessary to ensure we provide competitive wages, consistent with our ongoing compensation practices. We remain committed to investing in our people through competitive rewards and development opportunities.
We also continue to monitor and adjust market wages as necessary to ensure we provide competitive wages, consistent with our ongoing compensation strategy. We remain committed to investing in our people through competitive rewards and development opportunities.
We periodically evaluate our compensation practices and for the last several years have engaged in a multi-step pay equity assessment process to ensure that we are compensating fairly for employees performing substantially similar job responsibilities.
For the last several years, we have engaged in a multi-step process to ensure that we are compensating fairly for employees performing substantially similar job responsibilities and report this out to the Compensation and Talent Committee.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeDollar and other foreign currencies may materially and adversely affect our results of operations. • An impairment of our goodwill or other intangible assets could materially adversely affect our results of operations and book value. • Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business and stock price. • Unfavorable conditions in the capital and credit markets may significantly and adversely affect our access to capital and our ability to pay our debts or expenses. • Our investment portfolio is subject to market risk, including changes in interest rates, that may adversely affect our results of operations and financial condition. • Our investment portfolio is subject to credit, liquidity and other risks that may adversely affect our results of operations and financial condition. • The value of our deferred tax assets could become impaired, which could materially and adversely affect our results of operations and financial condition. • Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers. • Through reinsurance, we have sold or exited businesses that could again become our direct financial and administrative responsibility if the reinsurers become insolvent. • We are exposed to risks related to the creditworthiness and reporting systems of some of our agents, third-party administrators and clients . • Our subsidiaries’ inability to pay us sufficient dividends could prevent us from meeting our obligations and paying future stockholder dividends. • Our ability to declare and pay dividends on our capital stock may be limited. • 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. 20 Technology, Cybersecurity and Privacy Risks • The failure to effectively maintain and modernize our technology systems and infrastructure and integrate those of acquired businesses could adversely affect our business. • We could incur significant liability if our technology systems or those of third parties are breached or we or third parties otherwise fail to protect the security of data residing on our respective systems, which could adversely affect our business and results of operations .
Biggest changeDollar and other foreign currencies may materially and adversely affect our results of operations. • An impairment of our goodwill or other intangible assets could materially adversely affect our results of operations and book value. • Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business and stock price. • Unfavorable conditions in the capital and credit markets may significantly and adversely affect our access to capital and our ability to pay our debts or expenses. • Our investment portfolio is subject to market risk, including changes in interest rates, that may adversely affect our results of operations and financial condition. • Our investment portfolio is subject to credit, liquidity and other risks that may adversely affect our results of operations and financial condition. 19 • The value of our deferred tax assets could become impaired, which could materially and adversely affect our results of operations and financial condition. • Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers. • Through reinsurance, we have sold or exited businesses that could again become our direct financial and administrative responsibility if the reinsurers become insolvent. • We are exposed to risks related to the creditworthiness and reporting systems of some of our agents, third-party administrators and clients . • Our subsidiaries’ inability to pay us sufficient dividends could prevent us from meeting our obligations and paying future stockholder dividends. • Our ability to declare and pay dividends on our capital stock may be limited. • 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.
Macroeconomic, Political and Global Market Risks General economic, financial market and political conditions and conditions in the markets in which we operate may materially adversely affect our results of operations and financial condition.
Macroeconomic, Political and Global Market Risks General economic, financial market and political conditions and conditions in the markets in which we operate may materially adversely affect our results of operations and financial condition.
These include, among others, diversion of management’s attention and resources to the integration of operations and infrastructure, which could otherwise have been devoted to other strategic opportunities; inaccurate assessment of risks and liabilities; difficulties in realizing projected revenues, earnings, cash flows, business opportunities, growth prospects, efficiencies, synergies and cost savings, including the incurrence of unexpected integration, compliance or divestiture costs; difficulties in keeping existing customers and obtaining new customers; exposure to jurisdictions or businesses with heightened legal and regulatory risks, including corruption, which may increase compliance costs; difficulties in integrating operations and systems, including cybersecurity and other technology systems, and internal control over financial reporting; difficulties in assimilating employees and corporate cultures; an increase in our indebtedness or future borrowing costs; and limitations on our ability to access additional capital when needed.
These include, among others, diversion of management’s attention and resources to the integration of operations and infrastructure, which could otherwise have been devoted to other strategic opportunities; inaccurate assessment of risks and liabilities; difficulties in realizing projected revenues, earnings, cash flows, business opportunities, growth prospects, efficiencies, synergies and cost savings, including the incurrence of unexpected integration, compliance or divestiture costs; reputational risks; difficulties in keeping existing customers and obtaining new customers; exposure to jurisdictions or businesses with heightened legal and regulatory risks, including corruption, which may increase compliance costs; difficulties in integrating operations and systems, including cybersecurity and other technology systems, and internal control over financial reporting; difficulties in assimilating employees and corporate cultures; an increase in our indebtedness or future borrowing costs; and limitations on our ability to access additional capital when needed.
Specifically, during periods of economic downturn: 27 • individuals and businesses may (i) choose not to purchase our insurance products, extended service contracts and other products and services, (ii) terminate existing policies or contracts or permit them to lapse and (iii) choose to reduce the amount of coverage they purchase; • conditions in the markets in which we operate may deteriorate, impacting, among other things, consumer demand for the mobile devices, electronics, appliances, automobiles, housing and other products we insure, including the rate of introduction and success of new products, technologies and promotional programs that provide opportunities for growth; • clients are more likely to underperform expectations, experience financial distress and declare bankruptcy, which could have an adverse impact on the remittance of premiums from such clients and the collection of receivables from such clients for items such as unearned premiums and could otherwise expose us to credit risk; • claims on certain specialized insurance products tend to rise; • there is a risk of fraudulent insurance claims; • there may be an impairment in the value of our tangible and intangible assets and our investment portfolio may be adversely affected; • there may be fluctuations in the labor market and a negative impact on employee retention; and • our ability to access the capital markets on favorable terms or at all may be negatively impacted.
Specifically, during periods of economic downturn: • individuals and businesses may (i) choose not to purchase our insurance products, extended service contracts and other products and services, (ii) terminate existing policies or contracts or permit them to lapse and (iii) choose to reduce the amount of coverage they purchase; 26 • conditions in the markets in which we operate may deteriorate, impacting, among other things, consumer demand for the mobile devices, electronics, appliances, automobiles, housing and other products we insure, including the rate of introduction and success of new products, technologies and promotional programs that provide opportunities for growth; • clients are more likely to underperform expectations, experience financial distress and declare bankruptcy, which could have an adverse impact on the remittance of premiums from such clients and the collection of receivables from such clients for items such as unearned premiums and could otherwise expose us to credit risk; • claims on certain specialized insurance products tend to rise; • there is a risk of fraudulent insurance claims; • there may be an impairment in the value of our tangible and intangible assets and our investment portfolio may be adversely affected; • there may be fluctuations in the labor market and a negative impact on employee retention; and • our ability to access the capital markets on favorable terms or at all may be negatively impacted.
If we fail to comply with applicable laws and regulations, which occurs from time to time, we may be subject to investigations, criminal penalties, civil remedies or other adverse consequences, including fines, injunctions, loss of an 36 operating license or approval, increased scrutiny or oversight by regulatory authorities, the suspension of individual employees, limitations on engaging in a particular business, redress to clients, exposure to negative publicity or reputational damage and harm to client, employee and other relationships.
If we fail to comply with applicable laws and regulations, which occurs from time to time, we may be subject to investigations, criminal penalties, civil remedies or other adverse consequences, including fines, injunctions, loss of an operating license or approval, increased scrutiny or oversight by regulatory authorities, the suspension of individual employees, limitations on engaging in a particular business, redress to clients, exposure to negative publicity or reputational damage and harm to client, employee and other relationships.
See “ – 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. ” We purchase reinsurance for certain risks, but if the severity of an event were sufficiently high, our losses could exceed our reinsurance coverage limits and could have a material adverse effect on our results of operations and financial condition.
See “ – 25 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. ” We purchase reinsurance for certain risks, but if the severity of an event were sufficiently high, our losses could exceed our reinsurance coverage limits and could have a material adverse effect on our results of operations and financial condition.
We use modeling tools that help estimate our probable losses, but these projections are based on historical data and other assumptions that may differ materially from actual events, and their reliability and predictive value may decrease as a result of climate 26 change. These modeling tools may not be able to anticipate emerging trends or changing marketplace conditions.
We use modeling tools that help estimate our probable losses, but these projections are based on historical data and other assumptions that may differ materially from actual events, and their reliability and predictive value may decrease as a result of climate change. These modeling tools may not be able to anticipate emerging trends or changing marketplace conditions.
We could experience significant financial and reputational harm as a result of operational resiliency issues, including if our technology systems are breached, sensitive client or Company data are compromised, modified, rendered inaccessible for any period of time or made public, or if we fail to make adequate disclosures to the public or law enforcement agencies following any such event.
We could experience significant financial and reputational harm as a result of operational resiliency issues, including if our technology systems are breached, sensitive client or Company data are compromised, modified, rendered inaccessible for any period of time, made public or misused, or if we fail to make adequate disclosures to the public or law enforcement agencies following any such event.
See “ – Financial Risks – Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers. ” In addition, claims from catastrophe and non-catastrophe events could result in substantial volatility in our results of operations and financial condition for any particular fiscal quarter or year.
See “ – Financial Risks – Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers. ” Claims from catastrophe and non-catastrophe events could result in substantial volatility in our results of operations and financial condition for any particular fiscal quarter or year.
For additional information, see “Item 3 – Legal Proceedings” and Note 26 to the Consolidated Financial Statements included elsewhere in this Report. The costs of complying with, or our failure to comply with, U.S. and foreign laws related to privacy, data security and data protection could adversely affect our financial condition, operating results and reputation.
For additional information, see “Item 3 – Legal Proceedings” and Note 26 to the Consolidated Financial Statements included elsewhere in this Report. 36 The costs of complying with, or our failure to comply with, U.S. and foreign laws related to privacy, data security and data protection could adversely affect our financial condition, operating results and reputation.
Even in the absence of a takeover attempt, the 39 existence of these provisions may adversely affect the prevailing market price of our common stock if they are viewed as discouraging future takeover attempts. Additionally, applicable state and foreign insurance laws may require prior approval of an application to acquire control of a domestic insurer.
Even in the absence of a takeover attempt, the existence of these provisions may adversely affect the prevailing market price of our common stock if they are viewed as discouraging future takeover attempts. Additionally, applicable state and foreign insurance laws may require prior approval of an application to acquire control of a domestic insurer.
The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce . Our strategy is focused on delivering long-term profitable growth. As part of our strategy, we are developing new and innovative products and services and enhancing existing offerings.
The success of our business depends on the execution of our strategy, including through organic growth and the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce . Our strategy is focused on delivering long-term profitable growth. As part of our strategy, we are developing new and innovative products and services and enhancing existing offerings.
See “ – 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. ” 28 A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition .
See “ – 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. ” A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition .
For more information on these arrangements, including the reinsurance recoverable and risk mitigation mechanisms used, see Note 17 to the Consolidated Financial Statements included elsewhere in this Report. 32 We are exposed to risks related to the creditworthiness and reporting systems of some of our agents, third-party administrators and clients.
For more information on these arrangements, including the reinsurance recoverable and risk mitigation mechanisms used, see Note 17 to the Consolidated Financial Statements included elsewhere in this Report. We are exposed to risks related to the creditworthiness and reporting systems of some of our agents, third-party administrators and clients.
These parties’ failure to remit all premiums collected or to pay claims on our behalf or to reimburse us for paid claims on a timely and accurate basis could have an adverse effect on our results of operations. Our subsidiaries’ inability to pay us sufficient dividends could prevent us from meeting our obligations and paying future stockholder dividends .
These parties’ failure to remit all premiums collected or 31 to pay claims on our behalf or to reimburse us for paid claims on a timely and accurate basis could have an adverse effect on our results of operations. Our subsidiaries’ inability to pay us sufficient dividends could prevent us from meeting our obligations and paying future stockholder dividends .
To the extent that a vendor or third party suffers a cybersecurity incident that compromises their operations, our data and our customers’ data could be compromised or we may experience service interruption. Any failure related to these activities and operational resiliency could have a material adverse effect on our business.
To the extent that a vendor or third party suffers a cybersecurity incident that compromises their operations, our data and our customers’ data could be compromised or we may experience significant service interruption. Any failure related to these activities and operational resiliency could have a material adverse effect on our business.
If we were unable for any reason to comply with any new or revised requirements, including the RSA, it could result in substantial costs to us and ongoing reporting and monitoring 38 obligations, and may materially adversely affect our results of operations and financial condition.
If we were unable for any reason to comply with any new or revised requirements, including the RSA, it could result in substantial costs to us and ongoing reporting and monitoring obligations, and may materially adversely affect our results of operations and financial condition.
Such circumstances include a significant adverse change in legal factors, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a 29 significant decline in our expected future cash flows due to changes in company-specific factors or the broader business climate.
Such circumstances include a significant adverse change in legal factors, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a significant decline in our expected future cash flows due to changes in company-specific factors or the broader business climate.
This includes both proprietary and third-party modeled outputs and related analysis to assist us in decision-making related to pricing and rate filings, catastrophe and non-catastrophe modeling, loss reserving, asset management, corporate tax, financial reporting, and risk and capital management, among other things.
This includes both proprietary and third-party modeled outputs and related analysis to assist us in decision-making related to pricing and rate filings, catastrophe and non-catastrophe modeling, loss reserving, asset management, corporate tax, financial reporting and planning, and risk and capital management, among other things.
We are dependent on vendors and other third parties, such as cloud service providers, to keep their systems patched in order to protect our data. We have vendors and other third parties who receive data from us in connection with the services we offer our customers.
We are dependent on vendors and other third parties, such as cloud service providers, to keep their systems patched and hardened in order to protect our data. We have vendors and other third parties who receive data from us in connection with the services we offer our customers.
Market conditions may not allow us to invest in assets with sufficiently high returns to meet our pricing assumptions and profit targets over the long term. 30 We are subject to interest rate risk in our investment portfolio.
Market conditions may not allow us to invest in assets with sufficiently high returns to meet our pricing assumptions and profit targets over the long term. We are subject to interest rate risk in our investment portfolio.
Improper access to or disclosure of sensitive client or Company information, which has occurred from time to time, could harm our reputation and subject us to significant liability under our contracts, as well as under existing or future laws, rules and regulations.
Improper access to or disclosure of sensitive client or Company information, which has occurred from time to time, could harm our reputation and subject us to litigation and significant liability under our contracts, as well as under existing or future laws, rules and regulations.
They may disintermediate us by developing internal capabilities, products or services that would allow them to service their clients without our involvement, which has 21 occurred from time to time and may materially reduce our revenues and profits.
They may disintermediate us by developing internal capabilities, products or services that would allow them to service their clients without our involvement, which has occurred from time to time and may materially reduce our revenues and profits.
Reliance on a few significant clients may weaken our bargaining power, and we may be unable to renew contracts with them without concessions (including up-front payments) or on favorable terms or at all.
Reliance on a few significant clients may 20 weaken our bargaining power, and we may be unable to renew contracts with them without concessions (including up-front payments) or on favorable terms or at all.
The fair market value of fixed maturity securities generally increases or decreases in an inverse relationship with fluctuations in interest rates, while net investment income realized by us from future investments in fixed maturity securities generally increases or decreases directly with fluctuations in interest rates.
The fair market value of fixed maturity securities generally increases or decreases in an inverse relationship with fluctuations in interest rates, 29 while net investment income realized by us from future investments in fixed maturity securities generally increases or decreases directly with fluctuations in interest rates.
From time to time, we adjust our reserves, and may adjust our reserving methodology, as these factors, our claims experience and estimates of future trends in claims frequency and severity change. Reserve adjustments have caused volatility in our reported results.
From time to time, we adjust our reserves and our reserving methodology, as these factors, our claims experience and estimates of future trends in claims frequency and severity change. Reserve adjustments have caused volatility in our reported results.
As the breadth and complexity of the technologies we use continue to grow, and as a result of the remote and hybrid work arrangements for a significant portion of our employees, the risk of security breaches and cybersecurity incidents has increased.
As the breadth and complexity of 33 the technologies we use continue to grow, and as a result of the remote and hybrid work arrangements for a significant portion of our employees, the risk of security breaches and cybersecurity incidents has increased.
For more information on the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us in 2024 under applicable laws and regulations, without prior regulatory approval, see “Item 5 – Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities – Dividend Policy.” Any additional material restrictions on our insurance subsidiaries’ ability to pay us dividends could adversely affect our ability to pay any dividends on our common stock, service our debt and pay other expenses.
For more information on the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us in 2026 under applicable laws and regulations, without prior regulatory approval, see “Item 5 – Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities – Dividend Policy.” Any additional material restrictions on our insurance subsidiaries’ ability to pay us dividends could adversely affect our ability to pay any dividends on our common stock, service our debt and pay other expenses.
If we experience a business continuity event, such as an earthquake, hurricane, flood, terrorist incident, pandemic, security breach, cybersecurity incident, power loss, telecommunications outage or other systems failure, or other disaster, our ability to continue operations will depend on an effective business continuity and disaster recovery plan, including the safety and continued availability of our personnel including key executives, vendors and other third parties, and the proper functioning of our telecommunications and other systems and operations, including our device care centers and other facilities.
If we experience a business continuity event, such as an earthquake, hurricane, flood, terrorist incident, military conflict, pandemic, security breach, cybersecurity incident, power loss, telecommunications outage or other systems failure, or other disaster, our ability to continue operations will depend on an effective business continuity and disaster recovery plan, including the safety and continued availability of our personnel, including key executives, vendors and other third parties, and the proper functioning of our telecommunications and other systems and operations, including our device care centers and other facilities.
We may be unable to integrate the systems of the 35 businesses we acquire into our environment in a timely manner, which could further increase these risks until such integration takes place.
We may be unable to integrate the systems of the businesses we acquire into our environment in a timely manner, which could further increase these risks until such integration takes place.
Due to the large number and age of the systems and platforms that we operate and the increased frequency with which vendors issue security patches to their products, the need to test patches and, in some cases coordinate with clients and vendors, before they can be deployed, we are at risk that we cannot deploy these patches to remediate these vulnerabilities in a timely and effective manner.
Due to the large number and age of the systems and platforms that we operate and the increased frequency with which vendors issue security patches to their products, as well as the need to test patches and, in some cases coordinate with clients and vendors, before they can be deployed, we are at risk that we cannot deploy these patches to remediate these vulnerabilities in a timely and effective manner.
These players are focused on using technology and innovation to simplify and improve the customer experience, increase efficiencies, alter business models and effect other potentially disruptive changes in the markets in which we operate. To maintain a competitive position, we must continue to invest in new technologies and new ways to deliver our products and services.
These players are focused on using technology and innovation to simplify and improve the customer experience, increase efficiencies, alter business models and effect other potentially disruptive changes in the markets in which we operate. To maintain a competitive position, we must continue to invest in new technologies, including AI, and new ways to deliver our products and services.
Equity securities represented approximately 2% of our total investments as of December 31, 2024. However, we have had higher percentages of equity securities in the past and may make more equity investments in the future. Investments in equity securities generally are expected to provide higher total returns but present greater risk to preservation of capital than our fixed maturity securities.
Equity securities represented approximately 2% of our total investments as of December 31, 2025. However, we have had higher percentages of equity securities in the past and may make more equity investments in the future. Investments in equity securities generally are expected to provide higher total returns but present greater risk to preservation of capital than our fixed maturity securities.
In the future, these types of incidents could result in confidential, restricted personal or proprietary information being lost or stolen, modified, rendered inaccessible for any period of time, or made public, including client, employee or Company data, which could have a material adverse effect on our business.
These types of incidents have in the past and could in the future result in confidential, restricted personal or proprietary information being lost or stolen, modified, rendered inaccessible for any period of time, or made public, including client, employee or Company data, which could have a material adverse effect on our business.
As of December 31, 2024, our operations had a significant number of contracts that contain provisions that require the applicable subsidiaries to maintain minimum financial strength ratings, typically from A.M. Best, ranging from “A” or better to “B+” or better, depending on the contract.
As of December 31, 2025, our operations had a significant number of contracts that contain provisions that require the applicable subsidiaries to maintain minimum financial strength ratings, typically from A.M. Best, ranging from “A” or better to “B+” or better, depending on the contract.
We rely on the uninterrupted and secure operation of our technology systems, including information technology systems and operational technology systems, to operate our business and securely process, transmit and store electronic information. This electronic information includes confidential and other sensitive information, including personal data, that we receive from 34 our customers, vendors and other third parties.
We rely on the uninterrupted and secure operation of our technology systems, including information technology systems and operational technology systems, and those of our vendors to operate our business and securely process, transmit and store electronic information. This electronic information includes confidential and other sensitive information, including personal data, that we receive from our customers, vendors and other third parties.
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 pressures, changes in customer preferences and disruption could adversely affect our results of operations. • The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce. • We may be unable to find suitable acquisition candidates at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively or achieve organic growth, which could have a material adverse effect on our business, financial condition and results of operations . • Our inability to successfully recover should we experience a business continuity event could have a material adverse effect on our business, financial condition and results of operations. • Failure to successfully manage vendors and other third parties could adversely affect our business. • We face risks associated with our international operations. 19 • Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks . • Sales of our products and services may decline if we are unable to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships. • We face risks associated with joint ventures, franchises and investments in which we share ownership or management with third parties. • Catastrophe and non-catastrophe losses, including as a result of climate change and the current inflationary environment, could materially reduce our profitability and have a material adverse effect on our results of operations and financial condition. • Negative publicity relating to our business, industry or clients may have a material adverse effect on our financial results.
The following is a summary of the material risks that could adversely affect our business, financial condition, results of operations and cash flows. 18 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 pressures, changes in customer preferences and disruption could adversely affect our results of operations. • The success of our business depends on the execution of our strategy, including through organic growth and the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce. • We may be unable to find suitable acquisition candidates at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively, which could have a material adverse effect on our business, financial condition and results of operations . • Our inability to successfully recover should we experience a business continuity event could have a material adverse effect on our business, financial condition and results of operations. • Failure to successfully manage vendors and other third parties could adversely affect our business. • We face risks associated with our international operations. • Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks . • Sales of our products and services may decline if we are unable to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships. • We face risks associated with joint ventures, franchises and investments in which we share ownership or management with third parties. • Catastrophe and non-catastrophe losses, including as a result of climate change and the current inflationary environment, could materially reduce our profitability and have a material adverse effect on our results of operations and financial condition. • Negative publicity relating to our business, industry or clients may have a material adverse effect on our financial results.
This includes implementing an integrated global financial system; enhancing existing systems, procedures and controls; developing new systems and products; and retiring certain legacy systems. We have also migrated many of our systems and applications to the cloud, which is key to our technology strategy.
This includes our implementation of an integrated global financial system; enhancing existing systems, procedures and controls; developing new systems and products; and retiring certain legacy systems. We have also migrated many of our systems and applications to the cloud, which is key to our technology strategy.
If we are unable to attract and retain relationships with qualified vendors, independent contractors and other third-party service providers, or if changes in law or judicial decisions require independent contractors to be classified as employees, our business could be significantly adversely affected.
If we are unable to attract and retain qualified vendors, independent contractors and other third-party service providers, or if changes in law or judicial decisions require independent contractors to be classified as employees, our business could be significantly adversely affected.
See “ – Technology, Cybersecurity and Privacy Risks – We could incur significant liability if our technology systems or those of third parties are breached or we or third parties otherwise fail to protect the security of data residing on our respective systems, which could adversely affect our business and results of operations .” The risk of business disruption is more pronounced in certain geographic areas across the world, including the cities in which our device care centers, data centers and operations personnel are located; major metropolitan centers, such as Atlanta, where our headquarters is located; and certain catastrophe-prone areas, such as Miami, Florida, where we have significant operations.
See “ – Technology, Cybersecurity and Privacy Risks – We could incur significant liability if our technology systems or those of third parties are breached or we or third parties otherwise fail to protect the security of data residing on our respective systems, which could adversely affect our business and results of operations .” The risk of business disruption is more pronounced in certain geographic areas across the world, including the cities in which our device care centers, data centers and operations personnel are located; major metropolitan centers, such as Atlanta, where our headquarters is located; and certain catastrophe-prone areas, such as Miami, where we have a significant employee base.
See “ – Technology, Cybersecurity and Privacy 23 Risks – The failure to effectively maintain and modernize our technology systems and infrastructure and integrate those of acquired businesses could adversely affect our business .” Our operations depend upon our ability to protect our technology infrastructure against damage and interruption.
See “ – Technology, 22 Cybersecurity and Privacy Risks – The failure to effectively maintain and modernize our technology systems and infrastructure and integrate those of acquired businesses could adversely affect our business .” Our operations depend upon our ability to protect our technology infrastructure against damage and interruption.
If we do not anticipate and respond effectively to changes in customer preferences, new industry standards, evolving distribution models, disruptive technology developments and alternative business models, our business and results of operations could be adversely impacted.
If we do not anticipate and respond effectively to changes in customer preferences, new industry standards, evolving distribution models, disruptive technology developments, including AI, and alternative business models, our business and results of operations could be adversely impacted.
For example, we face the risk of the imposition of sanctions, tariffs, trade barriers or other protectionist laws or business practices that favor local competition (including from the United States), increase costs and may otherwise adversely affect our business; inflation and foreign exchange rate fluctuations; restrictions on currency conversion and the repatriation of non-U.S. investments and earnings; burdens and costs of compliance with a variety of foreign laws and regulations and the associated 24 risk and costs of non-compliance, including reputational harm; exposure to undeveloped or evolving legal systems, which may result in unpredictable or inconsistent application of laws and regulations, including export controls and exposure to commercial, political, legal or regulatory risks such as corruption; political, economic or other instability in countries in which we conduct business, including possible terrorist acts; diminished ability to enforce our contractual rights; increased risk of data breaches; differences in cultural environments; changes in regulatory requirements, including changes in regulatory treatment of certain products or services; exposure to local economic conditions and its impact on our clients’ performance and creditworthiness; and a competitive global labor market.
For example, we face the risk of, the imposition of sanctions, tariffs, trade barriers or other protectionist laws or business practices that favor local competition (including from the United States), increase costs and may otherwise adversely affect our business; inflation and foreign exchange rate fluctuations; restrictions on currency conversion and the repatriation of non-U.S. investments and earnings; burdens and costs of compliance with a variety of foreign laws and regulations and the associated risk and costs of non-compliance, including reputational harm; exposure to evolving legal systems, which may result in 23 unpredictable or inconsistent application of laws and regulations, including export controls and exposure to commercial, political, legal or regulatory risks such as corruption; political, economic or other instability in countries in which we conduct business, including possible terrorist acts; diminished ability to enforce our contractual rights; heightened data security risks; differences in cultural environments; changes in regulatory requirements, including changes in regulatory treatment of certain products or services; exposure to local economic conditions and its impact on our clients’ performance and creditworthiness; and a competitive global labor market.
Changing weather patterns and climate change have increased the unpredictability, frequency and severity of weather-related events, such as wildfires, hurricanes, floods and tornadoes, particularly in coastal areas such as Florida, California and Texas, and may result in increased claims and higher catastrophe losses, which could have a material adverse effect on our results of operations and financial condition.
Changing weather patterns and climate change have increased the unpredictability, frequency and severity of weather-related events, such as wildfires, hurricanes, floods and tornadoes, particularly in coastal areas such as Florida, California and Texas, has in the past and may in the future result in increased claims and higher catastrophe losses, which could have a material adverse effect on our results of operations and financial condition.
We continue to upgrade and implement new information technology systems and infrastructure involving several enterprise-wide technology initiatives to support our strategy and keep pace with continuing changes in information processing technology and evolving industry and regulatory requirements.
We continue to upgrade and implement new information technology systems and infrastructure involving several enterprise-wide technology initiatives, including AI, to support our strategy and keep pace with continuing changes in information processing technology and evolving industry and regulatory requirements.
Our certificate of incorporation or by-laws contain provisions that permit the Board to issue one or more series of preferred stock, prohibit stockholders from filling vacancies on the Board, prohibit stockholders from calling special meetings of stockholders and from taking action by written consent and impose advance notice requirements for stockholder proposals and nominations of directors to be considered at stockholder meetings.
Our certificate of incorporation or by-laws contain provisions that permit the Board to issue one or more series of preferred stock, prohibit stockholders from filling vacancies on the Board, prohibit stockholders from taking action by written consent, and impose advance notice requirements for stockholder proposals and nominations of directors to be considered at stockholder meetings. 38
While management has certified that our internal control over financial reporting was effective as of December 31, 2024, because internal control over financial reporting is complex, there can be no assurance that our internal control over financial reporting will be effective in the future.
While management has certified that our internal control over financial reporting was effective as of December 31, 2025, because internal control over financial reporting is complex, there can be no assurance that our internal control over financial reporting will be effective in the future.
Our mobile business is subject to the risk that the value, including selling price, or availability of devices and parts will be adversely affected by: technological changes affecting the usefulness or desirability of the devices and parts; physical problems resulting from faulty design or manufacturing; increased competition; decreased customer demand, including due to changes in customer preferences, changes in client promotions and seasonality; supply chain constraints; and growing industry emphasis on cost containment.
Our mobile business is subject to the risk that the value, including selling price, or availability of devices and parts will be adversely affected by: technological changes affecting the usefulness or desirability of the devices and parts; physical problems resulting from faulty design or manufacturing; increased competition; decreased customer demand, including due to changes in customer preferences, changes in client promotions and seasonality; changes in client forecasts and demand; supply chain constraints and our ability to manage inventory; and growing industry emphasis on cost containment.
Although some of these incidents have resulted in data loss and other damages, to date, they have not had a material adverse effect on our business or operations.
Although some of these incidents have resulted in data leaks and other damages, to date, they have not had a material adverse effect on our business or operations.
We may be unable to find suitable acquisition candidates at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively or achieve organic growth, which could have a material adverse effect on our business, financial condition and results of operations.
We may be unable to find suitable acquisition candidates at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively, which could have a material adverse effect on our business, financial condition and results of operations.
An interruption in or the cessation of service by any service provider as a result of systems failures, capacity constraints, financial difficulties or for any other reason has occurred from time to time and could materially disrupt our operations, impact our ability to offer certain products and services and result in contractual or regulatory penalties, liability claims from clients or employees, damage to our reputation and harm to our business.
An interruption in or the cessation of service by any service provider as a result of systems failures, capacity constraints, financial difficulties or for any other reason has occurred from time to time and could materially disrupt our operations, limit our ability to offer certain products and services, or result in contractual or regulatory penalties, liability claims, damage to our reputation and harm to our business.
As of December 31, 2024, fixed maturity securities represented approximately 84% and below investment grade securities (rated “BB” or lower by nationally recognized statistical rating organizations) represented approximately 6% of our total investments. Below investment grade securities generally are expected to provide higher returns but present greater risk and can be less liquid than investment grade securities.
As of December 31, 2025, fixed maturity securities represented approximately 85% and below investment grade securities (rated “BB” or lower by nationally recognized statistical rating organizations) represented approximately 6% of our total investments. Below investment grade securities generally are expected to provide higher returns but present greater risk and can be less liquid than investment grade securities.
We distribute many of our insurance products and services through a variety of channels, including service providers (such as device carriers and cable operators), financial institutions, mortgage lenders and servicers, retailers, association groups, 25 other third-party marketing organizations and, to a limited extent, our own captives and affiliated agents.
We distribute many of our insurance products and services through a variety of channels, including service providers (such as device carriers and cable operators), auto dealers and agents, financial institutions, mortgage lenders and servicers, 24 retailers, association groups, other third-party marketing organizations and, to a limited extent, our own captives and affiliated agents.
From time to time, we may be, and in certain cases have been, subject to a variety of legal and regulatory actions relating to our current and past business operations, including: • industry-wide investigations regarding business practices, including the use and marketing of certain types of insurance policies or certificates of insurance, and compliance with guidance issued by regulators; • actions by regulatory authorities that may restrict our ability to increase or maintain our premium rates, require us to reduce premium rates, require us to allow customers to defer premium payments on certain of our products, make offering our products more expensive or unattractive to our clients, impose fines or penalties, and result in other expenses; • market conduct examinations, for which we are required to pay the expenses of the regulator as well as our own expenses, and which may result in fines, penalties, and other adverse consequences; • disputes regarding our lender-placed insurance products, including those relating to rates, agent compensation, consumer disclosure, continuous coverage requirements, loan tracking services and other services that we provide to mortgage servicers; • disputes over coverage or claims adjudication, including in our sharing economy business; • disputes over our treatment of claims, in which states or insureds may allege that we failed to make required payments or meet prescribed deadlines for adjudicating claims; • disputes regarding regulatory compliance, sales practices, disclosures, premium refunds, licensing, underwriting and compensation arrangements, including if our climate change mitigation plans and targets are not met; • disputes over liability claims under comprehensive general liability policies involving property damage or personal injury at insured properties or relating to insured vehicles; • disputes alleging bundling of credit insurance and extended service contracts and related products with other products provided by financial institutions; • disputes with tax and insurance authorities regarding our tax liabilities; • investigations alleging violations of fraud, sanctions, money laundering and/or export control laws; • disputes relating to customers’ claims that they were not aware of the full cost or existence of the insurance or limitations on insurance coverage; • disputes relating to protecting our intellectual property portfolio and by third parties alleging intellectual property infringement; and • employment litigation claims brought by current or former employees. 37 Further, actions by certain regulators may cause additional changes to the structure of the lender-placed insurance industry, including the arrangements under which we track coverage on mortgaged properties.
From time to time, we may be, and in certain cases have been, subject to a variety of legal and regulatory actions relating to our current and past business operations, including: • industry-wide investigations regarding business practices, including the use and marketing of certain types of insurance policies or certificates of insurance, and compliance with guidance issued by regulators; • actions by regulatory authorities that may restrict our ability to increase or maintain our premium rates, require us to reduce premium rates, require us to allow customers to defer premium payments on certain of our products, make offering our products more expensive or unattractive to our clients, impose fines or penalties, and result in other expenses; • market conduct examinations, for which we are required to pay the expenses of the regulator as well as our own expenses, and which may result in fines, penalties, and other adverse consequences; • disputes regarding our lender-placed insurance products, including those relating to rates, agent compensation, consumer disclosure, continuous coverage requirements, loan tracking services and other services that we provide to mortgage servicers; • disputes over coverage or claims adjudication; • disputes over our treatment of claims, in which states or insureds may allege that we failed to make required payments or meet prescribed deadlines for adjudicating claims; • disputes regarding regulatory compliance, sales practices, disclosures, premium refunds, licensing, underwriting and compensation arrangements; • disputes over liability claims under comprehensive general liability policies involving property damage or personal injury at insured properties or relating to insured vehicles; • disputes alleging bundling of credit insurance and extended service contracts and related products with other products provided by financial institutions; • disputes with tax and insurance authorities regarding our tax liabilities; • investigations alleging violations of fraud, sanctions, money laundering and/or export control laws; • disputes relating to customers’ claims that they were not aware of the full cost or existence of the insurance or limitations on insurance coverage; • disputes relating to protecting our intellectual property portfolio and by third parties alleging intellectual property infringement; and • employment litigation claims brought by current or former employees.
Our insurance operations expose us to claims arising from catastrophes and other events, particularly in our homeowners insurance, renters insurance and flood offerings, as well as in certain businesses the Company has fully exited or expects to fully exit, including sharing economy.
Our insurance operations expose us to claims arising from catastrophes and other events, particularly in our homeowners insurance, renters insurance and flood offerings, as well as in certain businesses the Company has fully exited or expects to fully exit.
These up-front payments are typically supported by various protections, such as letters of credit, letters of guarantee and real estate, but we may not fully or timely recover amounts owed to us as a result of difficulties in enforcing contracts or judgments in undeveloped or evolving legal systems and other factors.
These up-front payments are typically supported by various protections, such as letters of credit, letters of guarantee and real estate, but we may not fully or timely recover amounts owed to us because of difficulties in enforcing contracts or judgments in evolving legal systems and other factors.
Our investments in commercial mortgage loans on real estate (which represented approximately 4% of our total investments as of December 31, 2024) are relatively illiquid. If we require extremely large amounts of cash on short notice, we may have difficulty selling these investments at attractive prices and in a timely manner.
Our investments in commercial mortgage loans on real estate (which represented approximately 3% of our total investments as of December 31, 2025) are relatively illiquid. If we require extremely large amounts of cash on short notice, we may have difficulty selling these investments at attractive prices and in a timely manner.
Our common stock price and trading volume has from time to time and could in the future materially fluctuate in response to a number of events and factors, including: variations in our quarterly operating results, including against expectations; client or business losses; catastrophe and non-catastrophe losses; the operating and stock price performance of comparable companies; changes in our insurance subsidiaries’ financial strength ratings; changes in our corporate debt ratings; changes to our registered securities; limitations on premium levels or the ability to maintain or raise premiums on existing policies; regulatory developments affecting our products or services; and negative publicity relating to us or our competitors.
Our common stock price and trading volume has from time to time and could in the future materially fluctuate in response to a number of events and factors, including: variations in our quarterly operating results, including against expectations; client or business losses; catastrophe and non-catastrophe losses; the operating and stock price performance of comparable companies; changes in our insurance subsidiaries’ financial strength ratings; changes in our corporate debt ratings; changes to our registered securities; limitations on premium levels or the ability to maintain or raise premiums on existing policies; our ability to pay common stock dividends, refinance or repay debt, or make interest payments on debt; regulatory developments affecting our products or services; and negative publicity relating to us or our competitors.
In addition, macroeconomic, geopolitical conflicts and industry fluctuations, including the current inflationary environment, may materially and adversely affect the trading price or volume of our common stock, regardless of our actual operating performance. Employee misconduct could harm us by subjecting us to significant legal liability, regulatory scrutiny and reputational harm.
In addition, macroeconomic, geopolitical conflicts and industry fluctuations may materially and adversely affect the trading price or volume of our common stock, regardless of our actual operating performance. Employee misconduct could harm us by subjecting us to significant legal liability, regulatory scrutiny and reputational harm.
We are subject to other laws and regulations on matters as diverse as antitrust, internal control over financial reporting and disclosure controls and procedures, accounting standards implemented by the Financial Accounting Standards Board and accounting-related rules and interpretations of the Securities and Exchange Commission, environmental protection, wage-and-hour standards, and employment and labor relations.
We are subject to other laws and regulations on matters as diverse as antitrust, internal control over financial reporting and disclosure controls and procedures, accounting standards implemented by the Financial Accounting Standards Board and accounting-related rules and interpretations of the SEC, environmental protection, wage-and-hour standards, and employment and labor relations.
It is not always possible to deter employee misconduct and the precautions we take to detect and prevent misconduct may not be effective. Misconduct by employees, or even unsubstantiated allegations, could have a material adverse effect on our financial position, reputation and business.
It is not always possible to deter employee misconduct and the precautions we take to detect and prevent misconduct may not be, and at times has not been, effective. Misconduct by employees, or even unsubstantiated allegations, could have a material adverse effect on our financial position, reputation and business.
Some of our competitors may offer a broader array of products and services than we do or be better able to tailor those products and services to customer needs, including through better technology systems or infrastructure, or may have greater diversity of distribution resources, better brand recognition, more competitive pricing, lower costs, greater financial strength, more resources or higher ratings.
Some of our competitors may: offer a broader array of products and services than we do or more favorable terms; be better able to tailor those products and services to client and customer needs, including through better technology systems or infrastructure; or have greater diversity of distribution resources, better brand recognition, more competitive pricing, lower costs, greater financial strength or ratings, more resources or higher quality of service.
An impairment of our goodwill or other intangible assets could materially adversely affect our results of operations and book value. As a result of acquisitions, we have added a considerable amount of goodwill and other intangible assets to our balance sheet. Goodwill represented 51% of our total equity as of December 31, 2024.
An impairment of our goodwill or other intangible assets could materially adversely affect our results of operations and book value. As a result of acquisitions, we have added a considerable amount of goodwill and other intangible assets to our balance sheet. Goodwill represented 45% of our total equity as of December 31, 2025.
Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers. As part of our overall risk and capacity management strategy, we purchase reinsurance for certain risks underwritten by our various operating segments. We also access the Florida Hurricane Catastrophe Fund (“FHCF”) to reinsure eligible Florida risks.
Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers. As part of our overall risk and capacity management strategy, we purchase reinsurance for certain risks underwritten by our various operating segments. We also access the FHCF to reinsure eligible Florida risks.
Insurance industry-related legislative or regulatory changes that could significantly harm our subsidiaries and us include: • imposed reductions in premium rates, limitations on the ability to raise premiums on existing policies, limitations on the ability to provide evergreen contracts or new minimum loss ratios; • increases in minimum capital, reserves, liquidity, solvency and other financial viability requirements, such as RBC standards established by the NAIC (each as defined hereafter); • enhanced or new regulatory requirements intended to prevent future financial crises or to otherwise ensure the stability of institutions; • new licensing requirements; • restrictions on the ability to offer certain types of insurance products, service contracts or other protection products; • prohibitions or limitations on provider financial incentives and provider risk-sharing arrangements; • more stringent standards of review for claims denials or coverage determinations; • increased regulation relating to lender-placed insurance; and • new or enhanced regulatory requirements that require insurers to pay claims on terms other than those mandated by underlying policy contracts.
Insurance industry-related legislative or regulatory changes that could significantly harm our subsidiaries and us include: • imposed reductions in premium rates, limitations on the ability to raise premiums on existing policies, limitations on the ability to provide evergreen contracts or new minimum loss ratios; • increases in minimum capital, reserves, liquidity, solvency and other financial viability requirements, such as RBC standards established by the NAIC; • enhanced or new regulatory requirements intended to prevent future financial crises or to otherwise ensure the stability of institutions; • new licensing requirements; • restrictions on the ability to offer certain types of insurance products, service contracts or other protection products; 37 • restrictions on algorithmic underwriting or the use of AI-enabled decision-making tools; • prohibitions or limitations on provider financial incentives and provider risk-sharing arrangements; • more stringent standards of review for claims denials or coverage determinations; • increased regulation relating to lender-placed insurance; and • new or enhanced regulatory requirements that require insurers to pay claims on terms other than those mandated by underlying policy contracts.
In the event of a cybersecurity incident, we might have to take our systems offline, which could interfere with services to our clients or damage our reputation.
In the event of a cybersecurity incident, we might have to take our systems offline, which could interfere with services to our clients, damage our reputation or expose us to litigation.
For additional information on the significant international regulations that apply to us and the risks relating thereto, see “Item 1 – Business – Regulation – International Regulation” in this Report, “ – Business, Strategic and Operational Risks – Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks, ” “ – Legal and Regulatory Risks – We are subject to extensive laws and regulations, which increase our costs and could restrict the conduct of our business, and violations or alleged violations of such laws and regulations could have a material adverse effect on our reputation, business and results of operations, ” “ – Legal and Regulatory Risks – Our business is subject to risks related to litigation and regulatory actions ” and “ – Legal and Regulatory Risks – The costs of complying with, or our failure to comply with, U.S. and foreign laws related to privacy, data security and data protection could adversely affect our financial condition, operating results and reputation . . ” Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks .
For additional information on the significant international regulations that apply to us and the risks relating thereto, see “Item 1 – Business – Regulation – International Regulation” in this Report, “ – Business, Strategic and Operational Risks – Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks, ” “ – Macroeconomic, Political and Global Market Risks – General economic, financial market and political conditions and conditions in the markets in which we operate may materially adversely affect our results of operations and financial condition,” “ – Legal and Regulatory Risks – We are subject to extensive laws and regulations, which increase our costs and could restrict the conduct of our business, and violations or alleged violations of such laws and regulations could have a material adverse effect on our reputation, business and results of operations, ” “ – Legal and Regulatory Risks – Our business is subject to risks related to litigation and regulatory actions ” and “ – Legal and Regulatory Risks – The costs of complying with, or our failure to comply with, U.S. and foreign laws related to privacy, data security and data protection could adversely affect our financial condition, operating results and reputation . ” Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks .
We rely on attracting, retaining and developing talent, including at the executive level, with diverse backgrounds and experiences to effectively manage our businesses and drive our long-term strategy. If we do not succeed in attracting, retaining and developing key talent, our revenue growth and profitability may be materially adversely affected.
We rely on attracting, retaining, developing and motivating talent, including at the executive level, to effectively manage our businesses and drive our long-term strategy. If we do not succeed in attracting, retaining and developing key talent, our revenue growth and profitability may be materially adversely affected.
Additionally, customers may turn to our competitors as a result of our or our client’s failure, or perceived failure, to deliver on customer expectations, product or service flaws, technology issues, gaps in operational support or other issues affecting customer experience.
Additionally, customers may turn to our competitors because of our or our client’s failure, or perceived failure, to deliver on customer expectations, product or service flaws, technology issues, gaps in operational support or other issues affecting customer experience.
In addition, there is uncertainty concerning potential and recent actions by the incoming U.S. administration, including increased or new tariffs that could increase the cost of claims, disrupt supply chains, and impact inflation. These factors may materially adversely affect our business, results of operations and financial condition.
In addition, there is continued uncertainty concerning potential and recent actions by the current U.S. administration, including increased or new tariffs that may impact the cost of claims and disrupt supply chains. These factors may materially adversely affect our business, results of operations and financial condition.
We are at risk of attack, and from time to time have been the subject of an attack, by a growing list of adversaries, including state-sponsored organizations, organized crime, hackers and “hacktivists” (activist hackers), through the use of increasingly sophisticated methods of attack, including long-term, persistent attacks referred to as advanced persistent threats, attacks via yet unknown vulnerabilities referred to as zero-day threats and credential harvesting attacks against our employees.
We are at risk of attack, and from time to time have been the subject of an attack, by a growing list of adversaries, including state-sponsored organizations, organized crime, hackers and “hacktivists” (activist hackers), through the use of increasingly sophisticated methods of attack, including long-term, persistent attacks referred to as advanced persistent threats, attacks via yet unknown vulnerabilities referred to as zero-day threats, attacks against our externally-facing applications and infrastructure components, and credential harvesting attacks against our employees through advanced social engineering tactics.
Limited availability of credit, deteriorations of the global mortgage and real estate markets, declines in consumer confidence and consumer spending, including in Europe, increases in prices or in the rate of inflation, periods of high unemployment or labor shortages, persistently low or rapidly increasing interest rates, disruptive geopolitical events, including the Israel-Hamas war, China-Taiwan relations and supply chain disruptions, and other events outside of our control, such as a major epidemic or a pandemic, political or civil unrest, or the possibility of a U.S. government shutdown or default on its debt obligations, could contribute, and in some cases have contributed, to increased volatility and diminished expectations for the economy and the financial markets, including the market for our stock.
Limited availability of credit, disruptive geopolitical events (including regional and global conflicts and trade relations), supply chain disruptions, deteriorations of the global economies, including mortgage and real estate markets, declines in consumer confidence and consumer spending, increases in prices or in the rate of inflation, periods of high unemployment or labor shortages, persistently low or rapidly increasing interest rates, and other events outside of our control (such as a major epidemic or a pandemic, political or civil unrest, the recent U.S. government shutdown or the possibility of a default on U.S. debt obligations), could contribute, and in some cases have contributed, to increased volatility and diminished expectations for the economy and the financial markets, including the market for our stock.
Cybersecurity incidents are rapidly evolving and becoming increasingly sophisticated, partly due to the growing use of artificial intelligence by malicious actors.
Cybersecurity incidents are rapidly evolving and becoming increasingly sophisticated, partly due to the growing use of AI by malicious actors.
In addition, other intangible assets collectively represented 10% of our total equity as of December 31, 2024. Estimated useful lives of finite intangible assets are reassessed on an annual basis.
In addition, other intangible assets collectively represented 9% of our total equity as of December 31, 2025. Estimated useful lives of finite intangible assets are reassessed on an annual basis.
Our competitive position may be impacted if we are unable to deploy, in an effective, compliant and competitive manner, technology such as artificial intelligence and machine learning, or if our competitors collect and use data that we do not have the ability to access or use.
Our competitive position may be impacted if we are unable to develop, use or integrate, in an effective, compliant and competitive manner, technology such as AI and machine learning, or if our competitors collect and use data that we do not have the ability to access or use.
In addition, our liability insurance policy, which includes cyber insurance, may not be sufficient in type or amount to fully cover us against claims and costs related to security breaches, cybersecurity incidents, and other related data and system incidents.
In addition, our cybersecurity insurance 34 policy may not be sufficient in type or amount to fully cover us against claims and costs related to security breaches, cybersecurity incidents, and other related data and system incidents.
All of these evolving compliance and operational requirements impose significant costs that are likely to increase over time and may restrict the way services involving data are offered, all of which may adversely affect our results of operations.
All of these evolving compliance and operational requirements, including restrictions on cross-border data transfers, impose significant costs that are likely to increase over time and may restrict the way services involving data are offered, all of which may adversely affect our results of operations.
Unauthorized disclosure or transfer of personal or otherwise sensitive data, whether through systems failure, employee negligence, fraud, misappropriation or other means, by us, our vendors or other parties with whom we do business could subject us to significant litigation, monetary damages, regulatory enforcement actions, fines, criminal prosecution and other adverse consequences in one or more jurisdictions.
Unauthorized disclosure or transfer of personal or otherwise sensitive data, whether through systems failure, employee negligence, fraud, misappropriation or other means, by us, our vendors or other parties with whom we do business could subject us to significant litigation, monetary damages, regulatory enforcement actions, investigations, fines, criminal prosecution, increased costs such as those related to notifications and credit monitoring, and other adverse consequences in one or more jurisdictions.
The global capital and credit markets have experienced periods of uncertainty, volatility and disruption, including the possibility of a U.S. government shutdown or default on its debt obligations, changes to U.S. and foreign tax and trade policies, imposition of new or increased tariffs, other trade restrictions, other government actions, foreign currency fluctuations and other factors.
The global capital and credit markets have experienced periods of uncertainty, volatility and disruption, including from geopolitical and macroeconomic tensions, a U.S. government shutdown, the possibility of a default on U.S. debt obligations, changes to U.S. and foreign tax and trade policies, the imposition of tariffs or other trade restrictions, other government actions and foreign currency fluctuations.
Doing so may be difficult due to many factors, including fluctuations in economic and industry conditions; employee expectations; the effectiveness of our talent strategies and total rewards and wellbeing programs; 22 and fluctuations in the labor market, including rising wages and competition for talent, which has generally increased due to labor shortages and wage inflation.
Doing so may be difficult due to many factors, including fluctuations in economic and industry conditions; employee expectations; the effectiveness of our talent strategies and total rewards and wellbeing programs; and fluctuations in the labor market, including rising wages and competition for talent.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeBoard Oversight The Board has ultimate oversight of cybersecurity risk. The Board reviews management’s assessment of our key enterprise risks and its strategy with respect to each risk, including cybersecurity risks, and receives a corresponding risk management update annually.
Biggest changeBoard Oversight The Board has ultimate oversight of cybersecurity risk. The Board reviews and approves our ERM Framework and risk appetite annually, including the appropriate risk appetite with respect to cybersecurity.
Our Chief Information Security Officer (“CISO”) briefs or provides a report to the Information Technology Committee on our cybersecurity and information security posture and program at least quarterly, including penetration test results and related remediation and significant cybersecurity incidents. The CISO also provides an annual cybersecurity update to the full Board.
Our Chief Information Security Officer (“CISO”) briefs or provides a report to the Information Technology Committee on our cybersecurity and information security posture and program at least quarterly, including penetration test results and related remediation and significant cybersecurity incidents. Our CISO also provides an annual cybersecurity update to the full Board.
We require employees to participate in annual cybersecurity training and provide them with additional optional training and awareness materials, and we regularly engage our employees in phishing exercises, reporting results to the Information Technology Committee. In addition, we regularly engage assessors, consultants, auditors and other third parties in our management of cybersecurity risk.
We require employees to participate in annual cybersecurity training and provide them with additional optional training and awareness materials, and we regularly engage our employees in phishing exercises, reporting results to the Information Technology Committee. In addition, we regularly engage assessors, consultants, auditors and other 39 third parties in our management of cybersecurity risk.
Our Global Technology Officer joined the Company in 2016 and has over 30 years of information technology experience, including leading global digital, security, infrastructure, cloud services and application teams. Prior to joining the Company in 2016, our Global Technology Officer was chief information officer at a large, publicly-traded energy company.
Our Chief Technology Officer has over 30 years of information technology experience, including leading global digital, security, infrastructure, cloud services and application teams. Prior to joining the Company in 2016, our Chief Technology Officer was chief information officer at a large, publicly-traded energy company.
See “Item 1A – Risk Factors – Technology, Cybersecurity and Privacy Risks – The failure to effectively maintain and modernize our technology systems and infrastructure and integrate those of acquired businesses could adversely affect our business ”, “ – Technology, Cybersecurity and Privacy Risks – We could incur significant liability if our technology systems or those of third parties are breached or we or third parties otherwise fail to protect the security of data residing on our respective systems, which could adversely affect our business and results of operations ” and “ – Business Strategic and Operational Risks – Our inability to successfully recover should we experience a business continuity event could have a material adverse effect on our business, financial condition and results of operations ” for more information.
See “Item 1A – Risk Factors – Technology, Cybersecurity and Privacy Risks – The failure to effectively maintain and modernize our technology systems and infrastructure and integrate those of acquired businesses could adversely affect our business, ” “ – Technology, Cybersecurity and Privacy Risks – We could incur significant liability if our technology systems or those of third parties are breached or we or third parties otherwise fail to protect the security of data residing on our respective systems, which could adversely affect our business and results of operations, ” “ – Business Strategic and Operational Risks – Our inability to successfully recover should we experience a business continuity event could have a material adverse effect on our business, financial condition and results of operations ” and “– Failure to successfully manage vendors and other third parties could adversely affect our business” for more information.
Our CISO, who reports to our Global Technology Officer on the Management Committee, has over 20 years of information technology and security program management experience, holds a Certified Information Security Manager certification and has led our information security team, including information technology compliance and risk management, since 2009.
Our CISO, who reports to our Chief Technology Officer on the Management Committee, has over 20 years of information technology and security program management experience, holds a Certified Information Security Manager certification and has led our information security team, including information technology compliance and risk management, since 2009.
The Information Technology Committee of the Board reviews the effectiveness of our cybersecurity controls and procedures, including procedures to identify and assess internal and external risks from cybersecurity threats; controls to prevent and protect from cyberattacks, unauthorized access or other malicious acts and risks; procedures to detect, respond to, mitigate negative effects from and remediate cybersecurity attacks; and controls and procedures for fulfilling applicable regulatory reporting and disclosure obligations of the risks and costs of cybersecurity incidents.
The Information Technology Committee of the Board reviews the effectiveness of our cybersecurity policies, controls, training, technology and procedures, including procedures to identify and assess internal and external risks from cybersecurity threats; controls to prevent and protect from cyberattacks, unauthorized access or other malicious acts and risks; procedures to detect, respond to, mitigate negative effects from and remediate cybersecurity attacks; and controls and procedures for fulfilling applicable regulatory reporting and disclosure obligations related to cybersecurity incidents, risks and costs.
In the event of a cybersecurity incident, we follow our Enterprise Information Security Incident Response Plan (the “IRP”), which outlines steps from incident detection to assessment, response, mitigation, recovery and notification, including to key functional areas such as Global Risk Management, Corporate Law, Privacy and Compliance, senior leadership and the Board, as appropriate.
In the event of a cybersecurity incident, we follow our Enterprise Information Security Incident Response Plan (the “IRP”), which outlines steps from incident detection to assessment, response, mitigation, recovery and notification, including to key functional areas such as Global Risk Management, Corporate Law, Privacy and Compliance, senior leadership, and the Information Technology Committee of the Board and the full Board, as appropriate.
Risk Management Policies and Procedures 40 We have implemented cybersecurity policies and standards based on leading industry frameworks, including the ISO 27001 standard and the National Institute of Standards and Technology Cybersecurity Framework, and we regularly assess our policies and practices, including tabletop exercises, aimed at mitigating cybersecurity risks.
Risk Management Policies and Procedures We have implemented cybersecurity policies and standards based on leading industry frameworks, including the ISO 27001 standard and the National Institute of Standards and Technology Cybersecurity Framework, and we regularly assess our policies and practices, including through tabletop exercises with senior management (and periodically with members of the Board), aimed at mitigating cybersecurity risks.
We assess third-party cybersecurity controls through a cybersecurity questionnaire and a review of independent cybersecurity rating assessments. Our contracts with third parties generally include security and privacy addendums where applicable and require counterparties to meet a specific standard of data security and to report cybersecurity incidents to us.
Our contracts with third parties generally include security and privacy addendums where applicable and require counterparties to meet a specific standard of data security and to report cybersecurity incidents to us.
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We also receive threat intelligence from government agencies, information sharing and analysis centers, and cybersecurity associations. We rely on our vendors and other third parties, including the continued availability of their products and services, to conduct business and provide services to our clients. A cybersecurity incident at a vendor or other third party could materially adversely impact us.
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We also receive threat intelligence from government agencies, information sharing and analysis centers, and cybersecurity associations. We assess third-party cybersecurity controls through a cybersecurity questionnaire and a review of independent cybersecurity rating assessments. Our vendor risk management process includes a review of the information security policies of our key vendors against our standards, and ongoing monitoring for compliance.
Removed
Although we maintain cybersecurity insurance, the costs and expenses related to cybersecurity incidents may not be fully insured.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeIn December 2024, we started marketing for sale the property located in Florence, South Carolina. In January 2025, we entered into an agreement to sell our office in Miami, Florida, which had served as a shared office space supporting our Global Lifestyle and Global Housing businesses.
Biggest changeIn 2025, we entered into an agreement to sell our office in Miami, Florida, which had served as a shared office space supporting our Global Lifestyle and Global Housing businesses. Also in 2025, we sold one of our Global Housing operations centers located in Florence, South Carolina, and we started marketing for sale another operations center located in Springfield, Ohio.
We believe that our owned and leased properties are sufficient to support our current business operations. See Notes 13 and 26 to the Consolidated Financial Statements included elsewhere in this Report for additional information about our properties.
We lease office space and device care centers globally, with terms ranging from month-to-month to ten years. We believe that our owned and leased properties are sufficient to support our current business operations. See Notes 13 and 26 to the Consolidated Financial Statements included elsewhere in this Report for additional information about our properties.
Item 2. Properties We own four properties. We have a shared headquarters building in Atlanta, Georgia, which serves as our corporate headquarters, as well as the headquarters for our Global Lifestyle and Global Housing businesses. It is also a primary information technology center. In addition, Global Housing has operations centers located in Florence, South Carolina and Springfield, Ohio.
Item 2. Properties We own three properties. We have a shared headquarters building in Atlanta, Georgia, which serves as our corporate headquarters, as well as the headquarters for our Global Lifestyle and Global Housing businesses.
For more information on the sale, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.” In addition, we have started marketing for sale the property located in Florence, South Carolina. We lease office space and device care centers globally, with terms ranging from month-to-month to twelve years.
For more information on the Miami sale, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.”

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeIn addition, the Credit Facility restricts payments on our capital stock, including common stock dividends, if an event of default has occurred or if a proposed common stock dividend payment would cause an event of default under the Credit Facility.
Biggest changePayments of dividends on shares of common stock are restricted if an event of default has occurred or if the proposed common stock dividend payment would cause an event of default under the Credit Facility; or if we defer the payment of interest on our Subordinated Notes.
Dividend Policy Any determination to pay future dividends 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.
Dividend Policy Any determination to declare and pay future dividends will be at the sole 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.
We may seek approval of regulators to pay dividends in excess of any amounts that would be permitted without such approval. However, there can be no assurance that we would obtain such approval if sought. Our international and non-insurance subsidiaries provide additional sources of dividends.
We may seek approval of regulators to pay dividends in excess of any amounts that would be permitted without such approval. There can be 42 no assurance that we would obtain such approval if sought. Our international and non-insurance subsidiaries provide additional sources of dividends.
Our insurance subsidiaries are subject to significant regulatory and other restrictions limiting their ability to declare and pay dividends.
Our insurance subsidiaries are subject to significant regulatory and other restrictions limiting their ability to pay dividends.
The graph assumes that the value of the investment in our common stock and each index was $100 on December 31, 2019 and that all dividends were reinvested. 43 Total Values/Annual Return Percentages (Includes reinvestment of dividends) Initial Investment at 12/31/2019 TOTAL VALUES December 31, Security / Index 2020 2021 2022 2023 2024 Assurant, Inc.
The graph assumes that the value of the investment in our common stock and each index was $100 on December 31, 2020 and that all dividends were reinvested. 41 Total Values/Annual Return Percentages (Includes reinvestment of dividends) Initial Investment at 12/31/2020 TOTAL VALUES December 31, Security / Index 2021 2022 2023 2024 2025 Assurant, Inc.
See “Item 1A – Risk Factors – Financial Risks – Our subsidiaries’ inability to pay us sufficient dividends could prevent us from meeting our obligations and paying future stockholder dividends .” For the year ending December 31, 2025, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us under applicable laws and regulations, without prior regulatory approval, is approximately $524.2 million.
See “Item 1A – Risk Factors – Financial Risks – Our subsidiaries’ inability to pay us sufficient dividends could prevent us from meeting our obligations and paying future stockholder dividends .” For the year ending December 31, 2026, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us under applicable laws and regulations, without prior regulatory approval, is approximately $791.9 million.
Stock Performance Graph The following graph compares the cumulative total return (stock price increase plus reinvestment of dividends paid) on our common stock from December 31, 2019 through December 31, 2024 with the cumulative total returns for the S&P 400 MidCap Index and the S&P 500 Index, as the broad equity market indexes, and the S&P 500 Multi-line Insurance Index and the S&P 1500 Property & Casualty Index (“S&P 1500 P&C Index”), as the published industry indexes.
Stock Performance Graph The following graph compares the cumulative total return (stock price increase plus reinvestment of dividends paid) on our common stock from December 31, 2020 through December 31, 2025 with the cumulative total returns for the S&P 400 MidCap Index and the S&P 500 Index, as the broad equity market indexes, and the S&P Composite 1500 Property & Casualty Insurance Index (“S&P 1500 P&C Index”), as the published industry index.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is listed on the NYSE under the symbol “AIZ.” On February 14, 2025, there were approximately 216 registered holders of record of our common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is listed on the NYSE under the symbol “AIZ.” On February 13, 2026, there were approximately 221 registered holders of record of our common stock.
Dividends or returns of capital paid by our subsidiaries, net of infusions of liquid assets and excluding amounts used for acquisitions or received from dispositions, was 44 approximately $804.7 million for the year ended December 31, 2024, of which $420.0 million was generated by our U.S. domiciled insurance subsidiaries.
Dividends or returns of capital paid by our subsidiaries, net of infusions of liquid assets and excluding amounts used for acquisitions or received from dispositions, was approximately $925.1 million for the year ended December 31, 2025, of which $751.9 million was generated by our U.S. domiciled insurance subsidiaries.
Common Stock 6.09 % 16.46 % (18.34) % 37.52 % 28.55 % S&P 500 Index 18.40 28.71 (18.11) 26.29 25.02 S&P 400 MidCap Index 13.66 24.76 (13.06) 16.44 13.93 S&P 500 Multi-line Insurance Index (18.28) 45.78 9.67 12.21 8.12 S&P 1500 P&C Index 5.39 19.57 14.80 10.94 33.58 Issuer Purchases of Equity Securities The table below provides information regarding purchases of our common stock during the fourth quarter of 2024.
Common Stock 16.46 % (18.34) % 37.52 % 28.55 % 14.69 % S&P 500 Index 28.71 (18.11) 26.29 25.02 17.88 S&P 400 MidCap Index 24.76 (13.06) 16.44 13.93 7.50 S&P 1500 P&C Index 19.57 14.80 10.94 33.58 8.96 Issuer Purchases of Equity Securities The table below provides information regarding purchases of our common stock during the fourth quarter of 2025.
Further, if we elect to defer the payment of interest on our Subordinated Notes, we generally may not make payments on our capital stock.
In addition, if we elect to defer the payment of interest on our subordinated notes (refer to “ — Senior and Subordinated Notes” below), we generally may not make payments on or repurchase any shares of our capital stock.
Period in 2024 Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (1) October 1 – October 31 98,507 $ 194.37 98,507 $ 475.4 November 1 – November 30 134,992 223.27 134,992 445.2 December 1 – December 31 325,011 217.47 325,011 374.5 Total fourth quarter 558,510 $ 214.80 558,510 $ 374.5 (1) Shares purchased pursuant to the November 2023 publicly announced share repurchase authorization of up to $600.0 million aggregate cost at purchase of outstanding common stock.
Period in 2025 Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (1) October 1 – October 31 127,802 $ 214.45 127,802 $ 140.9 November 1 – November 30 105,168 225.60 105,168 817.2 December 1 – December 31 183,445 231.80 183,445 774.6 Total fourth quarter 416,415 $ 224.91 416,415 $ 774.6 (1) Shares purchased pursuant to the November 2023 publicly announced share repurchase authorization of up to $600.0 million aggregate cost at purchase of outstanding common stock.
For more information regarding the Credit Facility, the Subordinated Notes and restrictions on the payment of dividends by us and our insurance subsidiaries, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.” Securities Authorized for Issuance Under Equity Compensation Plans See Item 12 of this Report for information about securities authorized for issuance under our equity compensation plans.
For more information, see “Item 1A – Risk Factors – Financial Risks – Our ability to declare and pay dividends on our capital stock may be limited ” and “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.” Securities Authorized for Issuance Under Equity Compensation Plans See Item 12 of this Report for information about securities authorized for issuance under our equity compensation plans.
As of December 31, 2024, $374.5 million aggregate cost at purchase remained unused under the repurchase authorization.
In November 2025, the Board authorized an additional share repurchase program for up to $700.0 million aggregate cost at purchase of outstanding common stock. As of December 31, 2025, $774.6 million aggregate cost at purchase remained unused under the repurchase authorizations.
Removed
Beginning with the 2024 Form 10-K, we changed one of our benchmark indexes from the S&P 500 Multi-line Insurance Index to the S&P 1500 P&C Index, as we believe it better reflects our current mix of businesses after our multi-year transformation that included exiting preneed, health and life insurance-related businesses.
Added
Common Stock $ 100.00 $ 116.46 $ 95.10 $ 130.78 $ 168.11 $ 192.81 S&P 500 Index 100.00 128.71 105.40 133.10 166.40 196.16 S&P 400 MidCap Index 100.00 124.76 108.47 126.29 143.89 154.68 S&P 1500 P&C Index 100.00 119.57 137.26 152.29 203.42 221.66 ANNUAL RETURN PERCENTAGES Years Ended December 31, Security / Index 2021 2022 2023 2024 2025 Assurant, Inc.
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Data for the S&P 500 Multi-line Insurance Index is provided for comparison purposes only as we transition to use of the S&P 1500 P&C Index.
Added
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.
Removed
Common Stock $ 100.00 $ 106.09 $ 123.55 $ 100.90 $ 138.75 $ 178.36 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 S&P 400 MidCap Index 100.00 113.66 141.80 123.28 143.54 163.54 S&P 500 Multi-line Insurance Index 100.00 81.72 119.13 130.65 146.61 158.51 S&P 1500 P&C Index 100.00 105.39 126.01 144.67 160.50 214.39 ANNUAL RETURN PERCENTAGES Years Ended December 31, Security / Index 2020 2021 2022 2023 2024 Assurant, Inc.
Removed
Payments of dividends on shares of common stock may be subject to the preferential rights of any preferred stock that the Board may create from time to time.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe increase in net income was partially offset by $106.9 million increase in after-tax reportable catastrophes, higher after-tax depreciation expenses of $23.8 million, mainly due to higher software assets placed into service, and lower earnings from Global Lifestyle, mainly due to elevated claims in Global Automotive. 52 Global Lifestyle The table below presents information regarding the Global Lifestyle segment’s results of operations for the periods indicated: For the Years Ended December 31, 2024 2023 Revenues: Net earned premiums $ 7,506.0 $ 7,362.6 Fees and other income 1,461.3 1,198.8 Net investment income 356.6 347.5 Total revenues 9,323.9 8,908.9 Benefits, losses and expenses: Policyholder benefits 1,738.6 1,607.9 Selling and underwriting expenses 4,770.4 4,789.3 Cost of sales 841.6 564.2 General expenses 1,199.9 1,155.2 Total benefits, losses and expenses 8,550.5 8,116.6 Global Lifestyle Adjusted EBITDA $ 773.4 $ 792.3 Net earned premiums, fees and other income: Connected Living $ 4,807.9 $ 4,376.8 Global Automotive 4,159.4 4,184.6 Total $ 8,967.3 $ 8,561.4 Net earned premiums, fees and other income: Domestic $ 6,970.2 $ 6,739.5 International 1,997.1 1,821.9 Total $ 8,967.3 $ 8,561.4 Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 Adjusted EBITDA decreased $18.9 million, or 2%, to $773.4 million for Twelve Months 2024 from $792.3 million for Twelve Months 2023, primarily due to elevated claims costs in Global Automotive, mainly from higher losses in select ancillary products, and from higher labor and parts costs due to inflation, higher expenses for investments in new client programs and capabilities in Connected Living, declines across mobile from trade-in programs due to the business mix and lower volumes and from mobile device protection from higher loss experience, and the unfavorable impact of foreign exchange.
Biggest changeThe increase in net income was partially offset by a higher annualized effective tax rate, mainly due to higher transferable tax credits and a tax benefit for the release of a valuation allowance on foreign deferred tax assets recorded in the prior year, as well as a $17.3 million increase in after-tax restructuring costs related to a new restructuring plan in fourth quarter 2025 related to optimizing operational efficiencies and higher after-tax depreciation expense of $13.4 million, mainly due to higher software assets placed into service. 50 Global Lifestyle The table below presents information regarding the Global Lifestyle segment’s results of operations for the periods indicated: For the Years Ended December 31, 2025 2024 Revenues: Net earned premiums $ 7,892.8 $ 7,506.0 Fees and other income 1,689.7 1,461.3 Net investment income 357.5 356.6 Total revenues 9,940.0 9,323.9 Benefits, losses and expenses: Policyholder benefits 1,901.7 1,738.6 Selling and underwriting expenses 4,986.8 4,770.4 Cost of sales 982.5 841.6 General expenses 1,267.7 1,199.9 Total benefits, losses and expenses 9,138.7 8,550.5 Global Lifestyle Adjusted EBITDA $ 801.3 $ 773.4 Net earned premiums, fees and other income: Connected Living $ 5,378.7 $ 4,807.9 Global Automotive 4,203.8 4,159.4 Total $ 9,582.5 $ 8,967.3 Net earned premiums, fees and other income: Domestic $ 7,334.3 $ 6,970.2 International 2,248.2 1,997.1 Total $ 9,582.5 $ 8,967.3 Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Adjusted EBITDA increased $27.9 million, or 4%, to $801.3 million for Twelve Months 2025 from $773.4 million for Twelve Months 2024, primarily due to Connected Living growth, mainly from global mobile device protection programs and U.S. financial services, and improved loss experience in Global Automotive.
Our actual results might differ materially from those projected in these forward-looking statements as a result of various factors, including those discussed below and elsewhere in this Report, particularly under the headings “Item 1A – Risk Factors” and “Forward-Looking Statements.” General Segment Information As of December 31, 2024, we had two reportable operating segments which are defined based on the manner in which the Company’s chief operating decision maker, our CEO, reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered: • Global Lifestyle: includes mobile device solutions (including extended service contracts, insurance policies and related services), extended service contracts and related services for consumer electronics and appliances, and financial services and other insurance products (referred to as “Connected Living”); and vehicle protection services, commercial equipment services and other related services (referred to as “Global Automotive”); and • Global Housing: includes lender-placed homeowners, manufactured housing and flood insurance, as well as voluntary manufactured housing, condominium and homeowners insurance (referred to as “Homeowners”); and renters insurance and other products (referred to as “Renters and Other”).
Our actual results might differ materially from those projected in these forward-looking statements as a result of various factors, including those discussed below and elsewhere in this Report, particularly under the headings “Item 1A – Risk Factors” and “Forward-Looking Statements.” General Segment Information As of December 31, 2025, we had two reportable operating segments which are defined based on the manner in which the Company’s chief operating decision maker, our CEO, reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered: • Global Lifestyle: includes mobile device solutions (including extended service contracts, insurance policies and related services), extended service contracts and related services for consumer electronics and appliances, and financial services and other insurance products (referred to as “Connected Living”); and vehicle protection services, commercial equipment protection and other related services (referred to as “Global Automotive”); and • Global Housing: includes lender-placed homeowners, manufactured housing and flood insurance, as well as voluntary manufactured housing, condominium and homeowners insurance (referred to as “Homeowners”); and renters insurance and other products (referred to as “Renters and Other”).
The timing and the amount of future repurchases will depend on various factors, including those listed above. 58 Assurant 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.
The timing and the amount of future repurchases will depend on various factors, including those listed above. Assurant 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.
Factors used in their calculation include experience derived from historical claim payments 47 and actuarial assumptions. Calculations incorporate assumptions about the incidence of incurred claims, the extent to which all claims have been reported, reporting lags, expenses, inflation rates, future investment earnings, internal claims processing costs and other relevant factors.
Factors used in their calculation include experience derived from historical claim payments and actuarial assumptions. Calculations incorporate assumptions about the incidence of incurred claims, the extent to which all claims have been reported, reporting lags, expenses, inflation rates, future investment earnings, internal claims processing costs and other relevant factors.
Short Duration Contracts Claims and benefits payable reserves for short duration contracts include (1) case reserves for known claims which are unpaid as of the balance sheet date; (2) IBNR reserves for claims where the insured event has occurred but has not been 48 reported to us as of the balance sheet date; and (3) loss adjustment expense reserves for the expected handling costs of settling the claims.
Short Duration Contracts Claims and benefits payable reserves for short duration contracts include (1) case reserves for known claims which are unpaid as of the balance sheet date; (2) IBNR reserves for claims where the insured event has occurred but has not been reported to us as of the balance sheet date; and (3) loss adjustment expense reserves for the expected handling costs of settling the claims.
We generally invest our subsidiaries’ 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.
We generally invest our subsidiaries’ funds in order to generate investment income. 56 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.
Such indicators include: a significant adverse change in legal factors, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a significant decline in our expected future cash flows due to 50 changes in company-specific factors or the broader business climate. The evaluation of such factors requires considerable management judgment.
Such indicators include: a significant adverse change in legal factors, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a significant decline in our expected future cash flows due to changes in company-specific factors or the broader business climate. The evaluation of such factors requires considerable management judgment.
The Munich Chain Ladder method incorporates the correlations between paid and incurred development in projecting future development factors, and is typically more applicable to products experiencing variability in incurred to paid ratios. Each of these methods applied to the data groupings produces an estimate of the loss reserves for the product grouping.
The Munich Chain Ladder method incorporates the correlations between paid and incurred development in projecting future development factors, and is typically more applicable to products experiencing variability in incurred to paid ratios. 46 Each of these methods applied to the data groupings produces an estimate of the loss reserves for the product grouping.
Long Duration Contracts, including Disposed and Runoff Long Duration Lines Reserves for future policy benefits represent the present value of future benefits to policyholders and related expenses less the present value of future net premiums. Reserve assumptions reflect best estimates for expected investment yield, inflation, mortality, morbidity, expenses and withdrawal rates.
Long Duration Contracts, including Disposed and Runoff Long Duration Lines Reserves for future policy benefits represent the present value of future benefits to policyholders and related expenses less the present value of future net premiums. Reserve assumptions reflect best estimates for expected investment yield, inflation, 47 mortality, morbidity, expenses and withdrawal rates.
Interest rates are highly sensitive to many factors, including governmental monetary policies, domestic and international economic and political conditions, inflation and other factors beyond our control. Fluctuations in interest rates affect our returns on, and the market value of, fixed maturity and short-term investments.
Interest rates are highly sensitive to many factors, including governmental monetary policies, domestic and international economic and political 44 conditions, inflation and other factors beyond our control. Fluctuations in interest rates affect our returns on, and the market value of, fixed maturity and short-term investments.
Because establishment of reserves is an inherently complex process involving significant judgment and estimates, there can be no certainty that future settlement amounts for claims incurred through the financial reporting date will not vary from reported claims reserves.
Because establishment of reserves is an inherently complex process involving significant judgment and estimates, there can be no certainty that future settlement amounts for claims incurred through the financial reporting date will not vary from 45 reported claims reserves.
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 they can pay to the holding company.
These dividend regulations vary by 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 they can pay to the holding company.
If the transaction is consummated pursuant to the terms of the agreement, we expect to record a gain above the current carrying value of $46.0 million as of December 31, 2024, less estimated costs to sell. We do not anticipate that any such gain will impact our capital deployment priorities.
If the transaction is consummated pursuant to the terms of the agreement, we expect to record a gain above the current carrying value of $46.0 million as of December 31, 2025, less estimated costs to sell. We do not anticipate that any such gain will impact our capital deployment priorities.
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 realize greater operational efficiencies and manage our expenses.
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 enhance operational efficiencies and manage our expenses.
Our mobile business is subject to volatility in mobile device trade-in volumes and margins based on the actual and anticipated timing of the release of new devices, carrier promotional programs and sales prices for used devices, as well as to changes in consumer preferences.
Our mobile business is subject to volatility in mobile device trade-in volumes and margins based on the actual and anticipated timing of the release of new devices, carrier promotional programs and sales prices for used devices, as well as to changes in consumer preferences and client forecasts and demands.
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 pre-tax corporate operating losses and interest expenses.
The 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 an internal minimum level calibrated based on approximately one year of pre-tax corporate operating losses and interest expenses.
The reserving methods widely employed by us include the Chain Ladder, Munich Chain Ladder and Bornhuetter-Ferguson methods. For Global Housing, reportable catastrophes are analyzed and reserved for separately using a frequency and severity approach. The methods all involve aggregating paid and case-incurred loss data by accident quarter (or accident year) and accident age for each product grouping.
The reserving methods widely employed by us include the Chain Ladder, Munich Chain Ladder and Bornhuetter-Ferguson methods. For Global Housing, reportable catastrophes are analyzed and reserved for separately using a frequency and severity approach. The methods all involve aggregating paid and case-incurred loss data by accident period and accident age for each product grouping.
Valuation and Recoverability of Goodwill Our goodwill related to acquisitions of businesses was $2.62 billion and $2.61 billion as of December 31, 2024 and 2023, respectively. We review our goodwill annually in the fourth quarter for impairment, or more frequently if indicators of impairment exist.
Valuation and Recoverability of Goodwill Our goodwill related to acquisitions of businesses was $2.65 billion and $2.62 billion as of December 31, 2025 and 2024, respectively. We review our goodwill annually in the fourth quarter for impairment, or more frequently if indicators of impairment exist.
We had $1.81 billion in cash and cash equivalents as of December 31, 2024. Please see “ – Liquidity and Capital Resources” below for further details. Revenues We generate revenues primarily from the sale of our insurance policies, service contracts and related products and services, and from income earned on our investments.
We had $1.83 billion in cash and cash equivalents as of December 31, 2025. See “ – Liquidity and Capital Resources” below for further details. Revenues We generate revenues primarily from the sale of our insurance policies, service contracts and related products and services, and from income earned on our investments.
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 of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $804.7 million and $772.6 million for Twelve Months 2024 and Twelve Months 2023, respectively.
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 of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $925.1 million and $804.7 million for Twelve Months 2025 and Twelve Months 2024, respectively.
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 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 $750.0 million. The Credit Facility is available until June 2030, provided we are in compliance with all covenants.
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 $1.8 million and $2.9 million of letters of credit outstanding as of December 31, 2024 and 2023, respectively.
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 $1.7 million and $1.8 million of letters of credit outstanding as of December 31, 2025 and 2024, respectively.
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 $760.1 million as of December 31, 2024) which we are not otherwise holding for a specific purpose as of the balance sheet date.
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 $985.4 million as of December 31, 2025) which we are not otherwise holding for a specific purpose as of the balance sheet date.
For the year ending December 31, 2025, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us, under applicable laws and regulations without prior regulatory approval, is approximately $524.2 million. Our international and non-insurance subsidiaries provide additional sources of dividends.
For the year ending December 31, 2026, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us, under applicable laws and regulations without prior regulatory approval, is approximately $791.9 million. Our international and non-insurance subsidiaries provide additional sources of dividends.
Limited Recourse Note In 2024, Assurant entered into a financing arrangement pursuant to which it is able to issue a $100 million limited recourse note and, in return, obtain a $100 million asset-backed note from a Delaware master trust. As of December 31, 2024 no notes have been issued under this arrangement.
Limited Recourse Note In 2024, we entered into a financing arrangement pursuant to which we are able to issue a $100 million limited recourse note and, in return, obtain a $100 million asset-backed note from a Delaware master trust. As of December 31, 2025, no notes have been issued under this arrangement.
For further information on our ratings and the risks of ratings downgrades, see “Item 1 – Business – Ratings” and “Item 1A – Risk Factors – Financial Risks – A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition. ” Holding Company As of December 31, 2024, we had approximately $673.0 million in holding company liquidity, $448.0 million above our targeted minimum level of $225.0 million.
For further information on our ratings and the risks of ratings downgrades, see “Item 1 – Business – Ratings” and “Item 1A – Risk Factors – Financial Risks – A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition. ” Holding Company As of December 31, 2025, we had approximately $887.4 million in holding company liquidity, $662.4 million above our minimum level of $225.0 million.
For additional information on our debt, see Note 18 to the Consolidated Financial Statements included elsewhere in this Report.
For additional information, see Note 18 to the Consolidated Financial Statements included elsewhere in this Report.
The table below shows our recent net cash flows for the periods indicated: For the Years Ended December 31, 2024 2023 Net cash provided by (used in): Operating activities $ 1,332.7 $ 1,138.1 Investing activities (657.8) (637.7) Financing activities (477.5) (403.9) Effect of exchange rate changes on cash and cash equivalents (17.1) (5.8) Net change in cash $ 180.3 $ 90.7 Cash Flows for the Years Ended December 31, 2024 and 2023 Operating Activities 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.
The table below shows our recent net cash flows for the periods indicated: For the Years Ended December 31, 2025 2024 Net cash provided by (used in): Operating activities $ 1,833.9 $ 1,332.7 Investing activities (1,457.8) (657.8) Financing activities (364.2) (477.5) Effect of exchange rate changes on cash and cash equivalents 14.5 (17.1) Net change in cash $ 26.4 $ 180.3 58 Cash Flows for the Years Ended December 31, 2025 and 2024 Operating Activities 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.
See “Item 1A – Risk Factors – Business, Strategic and Operational Risks – Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations, ” “ – Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks ” and “ – The success of our business depends on 46 the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce.” For Twelve Months 2024, net cash provided by operating activities was $1.33 billion; net cash used in investing activities was $657.8 million; and net cash used in financing activities was $477.5 million.
For more information on these and other factors that could affect our results, see “Item 1A – Risk Factors,” including “ – Business, Strategic and Operational Risks – Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations, ” “ – Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks ” and “ – The success of our business depends on the execution of our strategy, including through organic growth and the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce.” For Twelve Months 2025, net cash provided by operating activities was $1.83 billion; net cash used in investing activities was $1.46 billion; and net cash used in financing activities was $364.2 million.
As of December 31, 2024, we had exposure to $168.2 million of reserves below the deductible that we would be responsible for if the clients were to default on their contractual obligation to pay us the deductible.
As of December 31, 2025, we had exposure to $86.8 million of reserves below the deductible that we would be responsible for if the clients were to default on their contractual obligation to pay us the deductible.
Net realized losses on investments and fair value changes to equity securities were $75.8 million for Twelve Months 2024 compared to net realized losses on investments and fair value changes to equity securities of $68.7 million for Twelve Months 2023.
Net realized losses on investments and fair value changes to equity securities were $71.8 million for Twelve Months 2025 compared to net realized losses on investments and fair value changes to equity securities of $75.8 million for Twelve Months 2024.
The following table provides details of the reinsurance recoverables balance as of December 31, 2024 and 2023: 2024 2023 Ceded future policyholder benefits and expense $ 340.7 $ 339.9 Ceded unearned premium 5,188.5 5,265.2 Ceded claims and benefits payable 1,808.9 971.4 Ceded paid losses 241.4 72.7 Total $ 7,579.5 $ 6,649.2 For additional information regarding our reserves and reinsurance recoverables, see Notes 2, 4, 16 and 17 to the Consolidated Financial Statements included elsewhere in this Report.
The following table provides details of the reinsurance recoverables balance as of December 31, 2025 and 2024: 2025 2024 Ceded future policyholder benefits and expense $ 4.2 $ 340.7 Ceded unearned premium 5,062.9 5,188.5 Ceded claims and benefits payable 899.0 1,808.9 Ceded paid losses 505.2 241.4 Total $ 6,471.3 $ 7,579.5 For additional information regarding our reserves and reinsurance recoverables, see Notes 2, 4, 16 and 17 to the Consolidated Financial Statements included elsewhere in this Report.
Factors affecting these items, including conditions in the financial markets, the global economy, political conditions and the markets in which we operate, fluctuations in exchange rates, interest rates and inflation, including the current period of inflationary pressures which have impacted claims costs including in the Global Automotive business, and tariffs and global supply chain disruptions may have a material adverse effect on our results of operations or financial condition.
Factors affecting these items, including conditions in the financial markets, the global economy, political conditions and the markets in which we operate, fluctuations in exchange rates, interest rates and inflation, and tariffs and global supply chain disruptions may have a material adverse effect on our results of operations or financial condition.
In addition, we report the Corporate and Other segment, which includes corporate employee-related expenses and activities of the holding company.
In addition, we report the Corporate and Other segment, which includes corporate employee-related expenses, activities of the holding company and investments in our home warranty business.
Dividends and Repurchases During Twelve Months 2024 and Twelve Months 2023, we made common stock repurchases and paid dividends to our common stockholders of $455.8 million and $352.3 million, respectively. On January 16, 2025, the Board declared a quarterly dividend of $0.80 per common share payable on March 31, 2025 to stockholders of record as of February 3, 2025.
Dividends and Repurchases During Twelve Months 2025 and Twelve Months 2024, we made common stock repurchases and paid dividends to our common stockholders of $468.3 million and $455.8 million, respectively. On January 29, 2026, the Board declared a quarterly dividend of $0.88 per common share payable on March 30, 2026 to stockholders of record as of February 17, 2026.
The following table illustrates the amount of goodwill carried by operating segment as of the dates indicated: December 31, 2024 2023 Global Lifestyle (1) $ 2,299.3 $ 2,292.1 Global Housing 316.7 316.7 Total $ 2,616.0 $ 2,608.8 (1) As of December 31, 2024, $793.6 million and $1,505.7 million of goodwill was assigned to the Connected Living and Global Automotive reporting units, respectively.
The following table illustrates the amount of goodwill carried by operating segment as of the dates indicated: December 31, 2025 2024 Global Lifestyle (1) $ 2,329.6 $ 2,299.3 Global Housing 316.7 316.7 Total $ 2,646.3 $ 2,616.0 (1) As of December 31, 2025, $807.7 million and $1,521.9 million of goodwill was assigned to the Connected Living and Global Automotive reporting units, respectively.
The following table shows the credit quality of our fixed maturity securities portfolio as of the dates indicated: Fair Value as of Fixed Maturity Securities by Credit Quality December 31, 2024 December 31, 2023 Aaa / Aa / A $ 3,987.5 55.6 % $ 3,958.7 57.3 % Baa 2,699.7 37.6 % 2,564.8 37.1 % Ba 415.7 5.8 % 318.6 4.6 % B and lower 72.2 1.0 % 70.0 1.0 % Total $ 7,175.1 100.0 % $ 6,912.1 100.0 % The following table shows the major categories of net investment income for the periods indicated: Years Ended December 31, 2024 2023 Fixed maturity securities $ 385.9 $ 335.3 Equity securities 13.2 15.2 Commercial mortgage loans on real estate 19.2 17.5 Short-term investments 18.4 12.9 Other investments 21.3 39.1 Cash and cash equivalents 77.0 85.7 Total investment income 535.0 505.7 Investment expenses (16.1) (16.6) Net investment income $ 518.9 $ 489.1 Net investment income increased $29.8 million, or 6%, to $518.9 million for Twelve Months 2024 from $489.1 million for Twelve Months 2023.
The following table shows the credit quality of our fixed maturity securities portfolio as of the dates indicated: Fair Value as of Fixed Maturity Securities by Credit Quality December 31, 2025 December 31, 2024 Aaa / Aa / A $ 4,710.9 54.9 % $ 3,987.5 55.6 % Baa 3,257.9 38.0 % 2,699.7 37.6 % Ba 527.6 6.2 % 415.7 5.8 % B and lower 81.3 0.9 % 72.2 1.0 % Total $ 8,577.7 100.0 % $ 7,175.1 100.0 % The following table shows the major categories of net investment income for the periods indicated: Years Ended December 31, 2025 2024 Fixed maturity securities $ 434.8 $ 385.9 Equity securities 11.9 13.2 Commercial mortgage loans on real estate 18.6 19.2 Short-term investments 18.1 18.4 Other investments 2.9 21.3 Cash and cash equivalents 58.4 77.0 Total investment income 544.7 535.0 Investment expenses (17.4) (16.1) Net investment income $ 527.3 $ 518.9 Net investment income increased $8.4 million, or 2%, to $527.3 million for Twelve Months 2025 from $518.9 million for Twelve Months 2024.
As of December 31, 2023, $785.2 million and $1,506.9 million of goodwill was assigned to the Connected Living (including Global Financial Services which was aggregated with Connected Living in 2023) and Global Automotive reporting units, respectively.
As of December 31, 2024, $793.6 million and $1,505.7 million of goodwill was assigned to the Connected Living (including Global Financial Services which was aggregated with Connected Living in 2023) and Global Automotive reporting units, respectively.
See Note 23 to the Consolidated Financial Statements included elsewhere in this Report for more information. 61 Liabilities for future policy benefits and expenses have been included in the commitments and contingencies table. Significant uncertainties relating to these liabilities include mortality, morbidity, expenses, persistency, investment returns, inflation, contract terms and the timing of payments.
Liabilities for future policy benefits and expenses have been included in the commitments and contingencies table. Significant uncertainties relating to these liabilities include mortality, morbidity, expenses, persistency, investment returns, inflation, contract terms and the timing of payments.
In February 2020, we amended the Retirement Health Benefits to terminate such plan benefits to retirees effective December 31, 2024. Due to the Assurant Pension Plan’s current overfunded status, no contributions were made during 2024 and none are expected to be made in 2025.
In February 2020, we amended the Retirement Health Benefits to terminate such plan benefits to retirees effective December 31, 2024. Due to the Assurant Pension Plan’s current overfunded status, no contributions were made during 2025 and none are expected to be made in 2026. See Note 23 to the Consolidated Financial Statements included elsewhere in this Report for more information.
Critical Accounting Policies and Estimates Certain items in our Consolidated Financial Statements are based on estimates and judgment. Differences between actual results and these estimates and judgments could in some cases have material impacts on our Consolidated Financial Statements.
Differences between actual results and these estimates and judgments could in some cases have material impacts on our Consolidated Financial Statements.
On January 22, 2025, we entered into an agreement to sell our Miami, Florida property for a purchase price of $126.0 million, subject to the buyer receiving the requisite development approvals, which could take 18 to 24 months.
In January 2025, we entered into an agreement to sell our Miami, Florida property for a purchase price of $126.0 million, subject to certain adjustments and to the buyer receiving the requisite development approvals.
There can be no assurance that the transaction will be consummated. 57 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.
There can be no assurance that the transaction will be consummated. 55 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.
Global Housing net earned premiums, fees and other income increased $314.1 million, or 15%, to $2.46 billion for Twelve Months 2024 from $2.14 billion for Twelve Months 2023, primarily due to Homeowners top-line growth, including growth in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty Homeowners products.
Global Housing net earned premiums, fees and other income increased $311.8 million, or 13%, to $2.77 billion for Twelve Months 2025 from $2.46 billion for Twelve Months 2024, primarily due to growth in policies in-force and higher average premiums within lender-placed insurance, as well as growth in various specialty products.
Investing Activities Net cash used in investing activities was $657.8 million and $637.7 million for Twelve Months 2024 and Twelve Months 2023, respectively. The change in net investing cash flows was primarily driven by the increased investment of net cash 60 provided by operating activities and reinvestment of proceeds from the sale of fixed maturity securities during the period.
The change in net investing cash flows was primarily driven by the increased investment of net cash provided by operating activities and the reinvestment of proceeds from the sale of fixed maturity securities. Financing Activities Net cash used in financing activities was $364.2 million and $477.5 million for Twelve Months 2025 and Twelve Months 2024, respectively.
We paid dividends of $0.80 per common share on December 30, 2024 to stockholders of record as of December 9, 2024. This represented a 11% increase to the quarterly dividend of $0.72 per common share paid on September 30, June 24, and March 25, 2024.
We paid dividends of $0.88 per common share on December 29, 2025 to stockholders of record as of December 1, 2025. This represented a 10% increase to the quarterly dividend of $0.80 per common share paid on September 29, June 30, and March 31, 2025.
Recent Accounting Pronouncements Please see Note 2 to the Consolidated Financial Statements included elsewhere in this Report. 51 Results of Operations Assurant Consolidated The table below presents information regarding our consolidated results of operations: For the Years Ended December 31, 2024 2023 Revenues: Net earned premiums $ 9,795.8 $ 9,388.0 Fees and other income 1,638.6 1,323.2 Net investment income 518.9 489.1 Net realized losses on investments and fair value changes to equity securities (75.8) (68.7) Total revenues 11,877.5 11,131.6 Benefits, losses and expenses: Policyholder benefits 2,766.5 2,521.8 Underwriting, selling, general and administrative expenses 8,076.7 7,695.1 Interest expense 107.0 108.0 Loss on extinguishment of debt — (0.1) Total benefits, losses and expenses 10,950.2 10,324.8 Income before provision for income taxes 927.3 806.8 Provision for income taxes 167.1 164.3 Net income $ 760.2 $ 642.5 Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 Net Income Consolidated net income increased $117.7 million, or 18%, to $760.2 million for Twelve Months 2024 from $642.5 million for Twelve Months 2023, primarily driven by higher earnings in Global Housing, a $31.0 million favorable change in after-tax foreign exchange related gains (losses), a $32.2 million after-tax decline in losses related to our non-core operations and a $22.9 million reduction in after-tax restructuring costs related to our previously announced restructuring plan.
Recent Accounting Pronouncements See Note 2 to the Consolidated Financial Statements included elsewhere in this Report. 49 Results of Operations Assurant Consolidated The table below presents information regarding our consolidated results of operations: For the Years Ended December 31, 2025 2024 Revenues: Net earned premiums $ 10,482.9 $ 9,795.8 Fees and other income 1,875.9 1,638.6 Net investment income 527.3 518.9 Net realized losses on investments and fair value changes to equity securities (71.8) (75.8) Total revenues 12,814.3 11,877.5 Benefits, losses and expenses: Policyholder benefits 2,927.8 2,766.5 Underwriting, selling, general and administrative expenses 8,688.1 8,076.7 Interest expense 109.7 107.0 Loss on extinguishment of debt 1.3 — Total benefits, losses and expenses 11,726.9 10,950.2 Income before provision for income taxes 1,087.4 927.3 Provision for income taxes 214.7 167.1 Net income $ 872.7 $ 760.2 Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Net Income Consolidated net income increased $112.5 million, or 15%, to $872.7 million for Twelve Months 2025 from $760.2 million for Twelve Months 2024, primarily driven by higher earnings in Global Housing, a $38.7 million decrease in after-tax reportable catastrophes, higher earnings in Global Lifestyle and a $7.1 million after-tax decline in losses related to our non-core operations.
Net earned premiums increased $143.4 million, or 2%, primarily driven by growth from global mobile device protection programs and newly launched program within financial services in Connected Living, partially offset by a decline in extended service contracts in Connected Living and the unfavorable impact of foreign exchange.
Net earned premiums increased $386.8 million, or 5%, primarily driven by growth in Connected Living from global mobile subscriber growth and higher contributions from financial services from a new program, partially offset by a decline in domestic extended service contracts and the unfavorable impact of foreign exchange.
Senior and Subordinated Notes The following table shows the principal amount and carrying value of our outstanding debt, less unamortized discount and issuance costs as applicable, as of December 31, 2024 and 2023: December 31, 2024 December 31, 2023 Principal Amount Carrying Value Principal Amount Carrying Value 6.10% Senior Notes due February 2026 $ 175.0 $ 174.3 $ 175.0 $ 173.7 4.90% Senior Notes due March 2028 300.0 298.6 300.0 298.2 3.70% Senior Notes due February 2030 350.0 348.2 350.0 347.9 2.65% Senior Notes due January 2032 350.0 347.3 350.0 347.0 6.75% Senior Notes due February 2034 275.0 272.8 275.0 272.7 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 400.0 397.7 400.0 397.0 5.25% Subordinated Notes due January 2061 250.0 244.2 250.0 244.1 Total Debt $ 2,083.1 $ 2,080.6 In the next five years, we have two debt maturities in February 2026 and March 2028 when the 2026 Senior Notes and the 2028 Senior Notes, respectively, become due and payable.
Senior and Subordinated Notes The following table shows the principal amount and carrying value of our outstanding debt, less unamortized discount and issuance costs as applicable, as of December 31, 2025 and 2024: December 31, 2025 December 31, 2024 Principal Amount Carrying Value Principal Amount Carrying Value 6.10% Senior Notes due February 2026 $ — $ — $ 175.0 $ 174.3 4.90% Senior Notes due March 2028 300.0 299.0 300.0 298.6 3.70% Senior Notes due February 2030 350.0 348.5 350.0 348.2 2.65% Senior Notes due January 2032 350.0 347.7 350.0 347.3 6.75% Senior Notes due February 2034 275.0 273.1 275.0 272.8 5.55% Senior Notes due February 2036 300.0 296.1 — — 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 400.0 398.3 400.0 397.7 5.25% Subordinated Notes due January 2061 250.0 244.2 250.0 244.2 Total Debt $ 2,206.9 $ 2,083.1 2036 Senior Notes: In August 2025, we issued senior notes due February 2036 with an aggregate principal amount of $300.0 million, which bear interest at a rate of 5.55% per year and were issued at a 0.322% discount to the public (the “2036 Senior Notes”).
The table below shows our cash outflows for taxes, interest and dividends for the periods indicated: For the Years Ended December 31, 2024 2023 2022 Income taxes paid $ (38.9) $ 235.4 $ 127.7 Interest paid on debt 107.4 107.4 108.6 Common stock dividends 155.9 152.3 150.2 Total $ 224.4 $ 495.1 $ 386.5 Contractual Obligations and Commitments We have contractual obligations and commitments to third parties as a result of our operations, as detailed in the table below by maturity date as of December 31, 2024: As of December 31, 2024 Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Contractual obligations : Insurance liabilities (1) $ 2,809.1 $ 2,138.9 $ 534.2 $ 80.3 $ 55.7 Debt and related interest 3,592.0 107.3 369.2 467.6 2,647.9 Operating leases 71.7 17.7 28.8 18.1 7.1 Pension obligations and postretirement benefits (2) 459.6 49.7 98.1 96.2 215.6 Commitments: Investment purchases outstanding: Commercial mortgage loans on real estate 6.4 6.4 — — — Capital contributions to non-consolidated VIEs 239.2 239.2 — — — Liability for unrecognized tax benefits 20.4 — 16.9 — 3.5 Total obligations and commitments $ 7,198.4 $ 2,559.2 $ 1,047.2 $ 662.2 $ 2,929.8 (1) Insurance liabilities reflect undiscounted estimated cash payments to be made to policyholders, net of expected future premium cash receipts on in-force policies and excluding fully reinsured runoff operations.
The table below shows our cash outflows for taxes, interest and dividends for the periods indicated: For the Years Ended December 31, 2025 2024 2023 Income taxes paid $ 271.6 $ 126.6 $ 232.9 Interest paid on debt 107.2 107.4 107.4 Common stock dividends 168.4 155.9 152.3 Total $ 547.2 $ 389.9 $ 492.6 59 Contractual Obligations and Commitments We have contractual obligations and commitments to third parties as a result of our operations, as detailed in the table below by maturity date as of December 31, 2025: As of December 31, 2025 Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Contractual obligations : Insurance liabilities (1) $ 2,012.3 $ 1,502.6 $ 369.6 $ 87.3 $ 52.8 Debt and related interest 3,703.2 107.2 507.0 529.3 2,559.7 Operating leases 87.1 20.3 30.0 20.5 16.3 Pension obligations and postretirement benefits (2) 455.3 50.7 97.6 96.7 210.3 Commitments: Investment purchases outstanding: Commercial mortgage loans on real estate 7.8 7.8 — — — Capital contributions to non-consolidated VIEs 252.4 252.4 — — — Liability for unrecognized tax benefits 22.8 — 22.8 — — Total obligations and commitments $ 6,540.9 $ 1,941.0 $ 1,027.0 $ 733.8 $ 2,839.1 (1) Insurance liabilities reflect undiscounted estimated cash payments to be made to policyholders, net of expected future premium cash receipts on in-force policies and excluding fully reinsured runoff operations.
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. 59 We made no borrowings using the Credit Facility during Twelve Months 2024 and no loans were outstanding as of December 31, 2024.
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.
Based on this assessment, the Company determined that it was more likely than not that the reporting units’ fair values were more than their respective book values and therefore quantitative impairment testing was not necessary for Connected Living, Global Automotive and Global Housing as of October 1, 2024.
Based on this quantitative assessment, the Company determined that it was more likely than not that the reporting units’ fair values were more than their 48 carrying amounts and that there was no impairment for the Global Lifestyle and Global Housing reporting units as of October 1, 2025.
Our subsidiaries do not maintain commercial paper or other borrowing facilities. This program is currently backed up by the Credit Facility, of which $500.0 million was available as of December 31, 2024.
Our subsidiaries do not maintain commercial paper or other borrowing facilities. This program is backed up by the Credit Facility, of which $500.0 million was available as of December 31, 2025. We did not use the commercial paper program during Twelve Months 2025 and there were no amounts relating to the commercial paper program outstanding as of December 31, 2025.
For more information on our investments, see Notes 7 and 9 to the Consolidated Financial Statements included elsewhere in this Report. Liquidity and Capital Resources The following section discusses our ability to generate cash flows from each of our subsidiaries, borrow funds at competitive rates and raise new capital to meet our operating and growth needs.
Liquidity and Capital Resources The following section discusses our ability to generate cash flows from each of our subsidiaries, borrow funds at competitive rates and raise new capital to meet our operating and growth needs.
The effect of higher and lower levels of loss frequency and severity on our ultimate costs for claims occurring in 2024 would be as follows: 49 Change in both loss frequency and severity for all Global Lifestyle and Global Housing Ultimate cost of claims occurring in 2024 Change in cost of claims occurring in 2024 3% higher $ 2,765.8 $ 158.8 2% higher $ 2,712.3 $ 105.3 1% higher $ 2,659.4 $ 52.4 Base scenario (1) $ 2,607.0 $ — 1% lower $ 2,555.1 $ (51.9) 2% lower $ 2,503.8 $ (103.2) 3% lower $ 2,452.9 $ (154.1) (1) Represents the sum of the case reserves and incurred but not reported reserves as of December 31, 2024 for Global Lifestyle and Global Housing.
The effect of higher and lower levels of loss frequency and severity on our ultimate costs for claims occurring in 2025 would be as follows: Change in both loss frequency and severity for all Global Lifestyle and Global Housing Ultimate cost of claims occurring in 2025 Change in cost of claims occurring in 2025 3% higher $ 1,981.2 $ 113.7 2% higher $ 1,942.9 $ 75.4 1% higher $ 1,905.0 $ 37.5 Base scenario (1) $ 1,867.5 $ — 1% lower $ 1,830.3 $ (37.2) 2% lower $ 1,793.5 $ (74.0) 3% lower $ 1,757.1 $ (110.4) (1) Represents the sum of the case reserves and incurred but not reported reserves as of December 31, 2025 for Global Lifestyle and Global Housing.
During Twelve Months 2024, we repurchased 1,548,520 shares of our outstanding common stock at a cost of $299.9 million, exclusive of commissions. In November 2023, the Board authorized an additional share repurchase program for up to $600.0 million of our outstanding common stock. As of December 31, 2024, $374.5 million aggregate cost at purchase remained unused under the repurchase authorization.
In November 2023, the Board authorized a share repurchase program for up to $600.0 million of our outstanding common stock. In November 2025, the Board authorized an additional share repurchase program for up to $700.0 million of our outstanding common stock. As of December 31, 2025, $774.6 million aggregate cost at purchase remained unused under the repurchase authorizations.
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.
Credit Facility and Commercial Paper Program In June 2025, we entered into a $500.0 million five-year senior unsecured revolving credit facility (the “Credit Facility”) with certain lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and Wells Fargo Bank, National Association, as syndication agent.
The total gross reserve for fully reinsured runoff operations that was excluded was $642.1 million which, if the reinsurers defaulted, would be payable over a 30+ year period with the majority of the payments occurring after 5 years. Additional information on the reinsurance arrangements can be found in Note 17 to the Consolidated Financial Statements included elsewhere in this Report.
The total gross reserve for fully reinsured runoff operations that was excluded was $632.0 million which, if the reinsurers defaulted, would be payable over a 30+ year period with the majority of the payments occurring after 5 years. $489.4 million of these reinsurance recoverables were included in assets held for sale on the consolidated balance sheet.
Our results also depend on our ability to profitably grow our businesses, including our Connected Living, Global Automotive and Renters businesses, and the performance of our Homeowners business.
Our results also depend on our ability to profitably grow our businesses, including our Connected Living, Global Automotive and Renters businesses, and the performance of our Homeowners business, which will be impacted by our ability to provide a superior customer experience, including from our investments in technology and digital initiatives.
Selling and underwriting expenses increased $21.0 million, or 15%, primarily due to higher costs associated with growth.
General expenses increased $87.1 million, or 12%, and selling and underwriting expenses increased $43.5 million, or 28%, both primarily due to higher costs associated with growth.
Net earned premiums increased $266.5 million, or 13%, primarily driven by Homeowners from higher lender-placed policies in-force, average insured values, higher premium rates and growth across various specialty products, partially offset by the non-run rate adjustment described above and exits from certain international markets.
Net earned premiums increased $303.4 million, or 13%, primarily driven by Homeowners from higher lender-placed policies in-force and average premiums, as well as growth across various specialty products, growth in Renters and Other, primarily from a block of newly acquired renters policies, as previously disclosed, and the non-run rate adjustment described above, partially offset by higher catastrophe reinsurance premiums.
General expenses increased $65.5 million, or 10%, primarily due to higher costs associated with growth and the reclassification described above. 55 Corporate and Other The table below presents information regarding the Corporate and Other segment’s results of operations for the periods indicated: For the Years Ended December 31, 2024 2023 Revenues: Net earned premiums $ — $ — Fees and other income 0.4 0.2 Net investment income 27.2 21.4 Total revenues 27.6 21.6 Benefits, losses and expenses Policyholder benefits — 0.1 General expenses 149.8 130.5 Total benefits, losses and expenses 149.8 130.6 Corporate and Other Adjusted EBITDA $ (122.2) $ (109.0) Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 Adjusted EBITDA was $(122.2) million for Twelve Months 2024 compared to $(109.0) million for Twelve Months 2023.
Twelve Months 2025 had $113.1 million of favorable non-catastrophe prior year reserve development compared to $106.7 million in Twelve Months 2024. 53 Corporate and Other The table below presents information regarding the Corporate and Other segment’s results of operations for the periods indicated: For the Years Ended December 31, 2025 2024 Revenues: Net earned premiums $ — $ — Fees and other income 1.7 0.4 Net investment income 23.9 27.2 Total revenues 25.6 27.6 Benefits, losses and expenses Policyholder benefits — — General expenses 149.4 149.8 Total benefits, losses and expenses 149.4 149.8 Corporate and Other Adjusted EBITDA $ (123.8) $ (122.2) Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Adjusted EBITDA decreased $1.6 million, or 1%, to $(123.8) million for Twelve Months 2025 from $(122.2) million for Twelve Months 2024.
Net unrealized losses on our fixed maturity securities portfolio decreased $30.6 million during Twelve Months 2024, from a $380.3 million unrealized loss at December 31, 2023 to a $349.7 million unrealized loss at December 31, 2024, primarily due to higher yields offset by spreads tightening.
Net unrealized losses on our fixed maturity securities portfolio decreased $294.0 million during Twelve Months 2025, from a $349.7 million unrealized loss at December 31, 2024 to a $55.7 million unrealized loss at December 31, 2025, primarily due to a reduction in U.S. Treasury rates.
Our comparative analysis of Twelve Months 2023 and the year ended December 31, 2022 is included under the heading “Item 7.
The following discussion covers the year ended December 31, 2025 (“Twelve Months 2025”) and the year ended December 31, 2024 (“Twelve Months 2024”). For a more detailed comparative analysis, see the discussion that follows. Our comparative analysis of Twelve Months 2024 and the year ended December 31, 2023 is included under the heading “Item 7.
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.
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.
We define Adjusted EBITDA, our segment measure of profitability, as net income excluding net realized gains (losses) on investments and fair value changes to equity securities, non-core operations (which consists of certain businesses which we have fully exited or expect to fully exit, including the long-tail commercial liability businesses (sharing economy and small commercial businesses), certain legacy long-duration insurance policies and our operations in mainland China (not Hong Kong)), restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities), Assurant Health runoff operations, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, as well as other highly variable or unusual items.
We define Adjusted EBITDA, our segment measure of profitability, as net income, excluding net realized gains (losses) on investments and fair value changes to equity securities, interest expense, benefit (provision) for income taxes, depreciation expense, amortization of purchased intangible assets, as well as other highly variable or unusual items (including restructuring costs, the loss on the pending subsidiary sale and non-core operations, each as described below).
In addition to the restructuring plan announced in December 2022 and amended in 2023, we continue to undertake various expense savings initiatives while also making investments in talent, capabilities and technology, among other things, which will impact our expenses. We also incur interest expense related to our debt.
W e continue to undertake various expense savings initiatives while also making investments in talent, capabilities and technology, among other things, which impact our expenses. We also incur interest expense related to our debt. Critical Accounting Policies and Estimates Certain items in our Consolidated Financial Statements are based on estimates and judgment.
Total benefits, losses and expenses increased $234.7 million, or 14%, to $1.91 billion for Twelve Months 2024 from $1.68 billion for Twelve Months 2023. Policyholder benefits increased $148.2 million, or 17%, primarily due to higher reportable catastrophe losses and non-catastrophe losses from exposure growth, partially offset by the favorable year-over-year non-catastrophe prior year reserve development.
Policyholder benefits increased $8.2 million, or 1%, primarily due to higher non-catastrophe losses from exposure growth and severity, partially offset by favorable frequency, as well as lower reportable catastrophe losses and $6.4 million of favorable year-over-year non-catastrophe prior year reserve development.
Selling and underwriting expenses decreased $18.9 million, or 0.4% mainly due to lower commission expenses for extended service contracts in Connected Living and Global Automotive, partially offset by higher commissions from global mobile device protection programs. 54 Global Housing The table below presents information regarding the Global Housing segment’s results of operations for the periods indicated: For the Years Ended December 31, 2024 2023 Revenues: Net earned premiums $ 2,281.0 $ 2,014.5 Fees and other income 176.0 128.4 Net investment income 127.3 109.7 Total revenues 2,584.3 2,252.6 Benefits, losses and expenses: Policyholder benefits 1,010.2 862.0 Selling and underwriting expenses 158.1 137.1 General expenses 744.8 679.3 Total benefits, losses and expenses 1,913.1 1,678.4 Global Housing Adjusted EBITDA $ 671.2 $ 574.2 Impact of reportable catastrophes $ 245.2 $ 111.0 Net earned premiums, fees and other income: Homeowners $ 1,958.9 $ 1,663.4 Renters and Other 498.1 479.5 Total $ 2,457.0 $ 2,142.9 Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 Adjusted EBITDA increased $97.0 million, or 17%, to $671.2 million for Twelve Months 2024 from $574.2 million for Twelve Months 2023, mainly due to continued growth from higher policies in-force, average insured values and premium rates within Homeowners and $52.6 million of favorable year-over-year net impact to non-catastrophe prior year reserve development.
General expenses increased $67.8 million, or 6%, primarily due to higher employee-related and information technology expenses to support growth initiatives. 51 52 Global Housing The table below presents information regarding the Global Housing segment’s results of operations for the periods indicated: For the Years Ended December 31, 2025 2024 Revenues: Net earned premiums $ 2,584.4 $ 2,281.0 Fees and other income 184.4 176.0 Net investment income 141.8 127.3 Total revenues 2,910.6 2,584.3 Benefits, losses and expenses: Policyholder benefits 1,018.4 1,010.2 Selling and underwriting expenses 201.6 158.1 General expenses 831.9 744.8 Total benefits, losses and expenses 2,051.9 1,913.1 Global Housing Adjusted EBITDA $ 858.7 $ 671.2 Impact of reportable catastrophes $ 198.8 $ 245.2 Net earned premiums, fees and other income: Homeowners $ 2,192.4 $ 1,958.9 Renters and Other 576.4 498.1 Total $ 2,768.8 $ 2,457.0 Year Ended December 31, 2025 Compared to the Year Ended December 31, 2024 Adjusted EBITDA increased $187.5 million, or 28%, to $858.7 million for Twelve Months 2025 from $671.2 million for Twelve Months 2024, mainly due to continued growth from higher lender-placed policies in-force and average premiums within Homeowners, and favorable non-catastrophe loss experience driven by lower frequency from weather and water claims, $46.4 million of lower pre-tax reportable catastrophes, the previously disclosed $27.5 million unfavorable non-run rate adjustment from Twelve Months 2024, and higher net investment income and fee income.
The increase was primarily driven by higher yields and assets in fixed maturity securities and short term investments, partially offset by lower income in Other investments primarily driven by lower partnership income.
The increase was primarily driven by higher asset balances and yields in fixed maturity securities, partially offset by reduced income due to lower yields and balances in cash and cash equivalents and reduced income in real estate joint ventures and other partnerships.
Our Homeowners revenue is impacted by changes in the housing market, as well as the voluntary insurance market. In addition, across many of our businesses, we must respond to competitive pressures, including the threat of disruption and competition for talent, which has increased due to labor shortages and wage inflation.
In addition, across many of our businesses, we must respond to competitive pressures, including the threat of disruption and competition for talent.
Total benefits, losses and expenses increased $19.2 million, or 15%, to $149.8 million for Twelve Months 2024 from $130.6 million for Twelve Months 2023, primarily due to an increase in general expenses of $19.3 million, or 15%, primarily driven by higher employee-related expenses and higher third-party consulting expenses to support enterprise growth initiatives. 56 Investments We had total investments of $8.54 billion and $8.22 billion as of December 31, 2024 and 2023, respectively.
Total benefits, losses and expenses decreased $0.4 million, to $149.4 million for Twelve Months 2025 from $149.8 million for Twelve Months 2024, primarily due to a decrease in general expenses of $0.4 million, mostly driven by lower third-party expenses, partially offset by higher investments in our home warranty business and employee-related expenses. 54 Investments We had total investments of $10.06 billion and $8.54 billion as of December 31, 2025 and 2024, respectively.
Global Lifestyle net earned premiums, fees and other income increased $405.9 million, or 5%, to $8.97 billion for the Twelve Months 2024 from $8.56 billion for Twelve Months 2023, primarily due to contributions from newly launched trade-in programs and device protection programs.
Global Lifestyle net earned premiums, fees and other income increased $615.2 million, or 7%, to $9.58 billion for the Twelve Months 2025 from $8.97 billion for Twelve Months 2024, primarily due to global mobile programs and from a new program in financial services within Connected Living and modest growth in Global Automotive.
Risks related to the reserves recorded for certain discontinued individual life, annuity and long-term care insurance policies have been fully ceded via reinsurance.
Risks related to the reserves recorded for certain discontinued individual life, annuity and long-term care insurance policies have been fully ceded via reinsurance. The insurance subsidiary that includes these fully ceded insurance policies was classified as held for sale as of December 31, 2025. See Note 3 to the Consolidated Financial Statements included elsewhere in this Report for more information.
Total revenues increased $6.0 million, or 28%, to $27.6 million for Twelve Months 2024 from $21.6 million for Twelve Months 2023, primarily driven by an increase in net investment income of $5.8 million, or 27%, mostly due to higher yields and asset balances for fixed maturity securities.
Total revenues decreased $2.0 million, or 7%, to $25.6 million for Twelve Months 2025 from $27.6 million for Twelve Months 2024, primarily driven by a decrease in net investment income of $3.3 million, or 12%, mainly due to lower yields on fixed maturity securities, and cash and short term investments, partially offset by an increase in fees and other income of $1.3 million, mostly due to the sale of Internet Protocol addresses .
We did not use the commercial paper program during Twelve Months 2024 and there were no amounts relating to the commercial paper program outstanding as of December 31, 2024. For additional information, see Note 18 to the Consolidated Financial Statements included elsewhere in this Report. Letters of Credit Letters of credit are issued in the ordinary course of business.
For additional information, see Note 18 to the Consolidated Financial Statements included elsewhere in this Report. 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.
Total revenues increased $331.7 million, or 15%, to $2.58 billion for Twelve Months 2024 from $2.25 billion for Twelve Months 2023.
Total benefits, losses and expenses increased $588.2 million, or 7%, to $9.14 billion for Twelve Months 2025 from $8.55 billion for Twelve Months 2024.
The change in net financing cash flows was primarily due to higher share repurchases for Twelve Months 2024 and the issuance of the 2026 Senior Notes during Twelve Months 2023, partially offset by the redemption of our 4.20% 2023 Senior Notes during Twelve Month 2023.
The change in net financing cash flows was primarily due to the issuance of the 2036 Senior Notes, partially offset by the redemption of the 2026 Senior Notes. For additional information, see Note 18 in the Consolidated Financial Statements included elsewhere in this Report.
As of December 31, 2024, we owned $16.5 million of securities guaranteed by financial guarantee insurance companies. Included in this amount was $15.2 million of municipal securities, whose credit rating was A+ with the guarantee, but would have had a rating of AA- without the guarantee.
Included in this amount was $13.8 million of municipal securities, whose credit rating was A+ with the guarantee, but would have had a rating of AA- without the guarantee. For more information on our investments, see Notes 7 and 9 to the Consolidated Financial Statements included elsewhere in this Report.
Net cash provided by operating activities was $1.33 billion and $1.14 billion for Twelve Months 2024 and Twelve Months 2023, respectively. The change in net operating cash flows was largely attributable to the timing of tax payments as we received a refund in 2024 related to prior year tax returns as compared to payments in 2023.
These increases were partially offset by higher net paid claims and the timing of tax payments as we received a refund during Twelve Months 2024. Investing Activities Net cash used in investing activities was $1,457.8 million and $657.8 million for Twelve Months 2025 and Twelve Months 2024, respectively.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

8 edited+0 added−2 removed16 unchanged
Biggest changeDecember 31, 2024 December 31, 2023 2024 vs. 2023 Value of net assets (liabilities) Exchange rate per USD Value of net assets (liabilities) Exchange rate per USD % Change in exchange rate per USD British pound sterling (GBP) $ 323.3 1.2684 $ 321.5 1.2649 0.3% Canadian dollar (CAD) 239.3 0.6955 233.9 0.7567 (8.1)% Euro (EUR) 146.8 1.0514 170.7 1.0924 (3.8)% Brazilian real (BRL) 70.6 0.1630 87.3 0.2040 (20.1)% Australian dollar (AUD) 64.7 0.6372 60.5 0.6707 (5.0)% Mexican peso (MXN) 71.0 0.0497 85.4 0.0583 (14.8)% Japanese yen (JPY) 32.4 0.0065 28.6 0.0070 (7.1)% New Zealand dollar (NZD) 15.2 0.5783 12.8 0.6213 (6.9)% Chilean peso (CLP) 12.1 0.0010 17.6 0.0011 (9.1)% Argentine peso (ARS) 13.7 0.0010 8.6 0.0012 (16.7)% Indian rupee (INR) 9.4 0.0118 9.0 0.0120 (1.7)% Other (various currencies) (5.8) (2.6) Value of net assets denominated in foreign currencies $ 992.7 $ 1,033.3 Net assets $ 5,106.7 $ 4,809.5 As a percentage of total net assets 19.4 % 21.5 % Pre-tax decrease in fair value of our investments in foreign subsidiaries from a hypothetical 10 percent strengthening of the USD $ (109.6) $ (116.1) Pre-tax increase in fair value of our investments in foreign subsidiaries from a hypothetical 10 percent weakening of the USD $ 109.6 $ 116.1 Credit Risk Credit risk is the possibility that counterparties may not be able to meet payment obligations when they become due.
Biggest changeDollar and other foreign currencies may materially and adversely affect our results of operations. ” The following table summarizes the net assets (liabilities) denominated in foreign currencies as of December 31, 2025 and 2024 and the sensitivity to a hypothetical strengthening of the U.S. dollar. 61 December 31, 2025 December 31, 2024 2025 vs. 2024 Value of net assets (liabilities) Exchange rate per USD Value of net assets (liabilities) Exchange rate per USD % Change in exchange rate per USD British pound sterling (GBP) $ 340.1 1.3379 $ 323.3 1.2684 5.5% Canadian dollar (CAD) 247.5 0.7288 239.3 0.6955 4.8% Euro (EUR) 169.2 1.1754 146.8 1.0514 11.8% Brazilian real (BRL) 107.0 0.1846 70.6 0.1630 13.3% Australian dollar (AUD) 86.2 0.6643 64.7 0.6372 4.3% Mexican peso (MXN) 88.4 0.0556 71.0 0.0497 11.9% Japanese yen (JPY) 27.9 0.0064 32.4 0.0065 (1.5)% New Zealand dollar (NZD) 19.1 0.5783 15.2 0.5783 —% Chilean peso (CLP) 13.3 0.0011 12.1 0.0010 10.0% Argentine peso (ARS) 19.6 0.0007 13.7 0.0010 (30.0)% Indian rupee (INR) 8.0 0.0110 9.4 0.0118 (6.8)% Other (various currencies) (3.7) (5.8) Value of net assets denominated in foreign currencies $ 1,122.6 $ 992.7 Net assets $ 5,871.6 $ 5,106.7 As a percentage of total net assets 19.1 % 19.4 % Pre-tax decrease in fair value of our investments in foreign subsidiaries from a hypothetical 10 percent strengthening of the USD $ (122.4) $ (109.6) Pre-tax increase in fair value of our investments in foreign subsidiaries from a hypothetical 10 percent weakening of the USD $ 122.4 $ 109.6 Credit Risk Credit risk is the possibility that counterparties may not be able to meet payment obligations when they become due.
Foreign Exchange Risk We are exposed to foreign exchange risk arising from our investments in foreign subsidiaries. Foreign exchange risk is the possibility that changes in exchange rates produce an adverse effect on earnings and equity when measured in domestic 62 currency.
Foreign Exchange Risk We are exposed to foreign exchange risk arising from our investments in foreign subsidiaries. Foreign exchange risk is the possibility that changes in exchange rates produce an adverse effect on earnings and equity when measured in domestic currency.
There were no other significant changes in our primary market risk exposures or in how those exposures were managed for the year ended December 31, 2024, compared to the year ended December 31, 2023.
There were no other significant changes in our primary market risk exposures or in how those exposures were managed for the year ended December 31, 2025, compared to the year ended December 31, 2024.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk The following is a discussion of our primary market risk exposures and management of such exposures as of December 31, 2024.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk The following is a discussion of our primary market risk exposures and management of such exposures as of December 31, 2025.
For more information, 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. ” Our sensitivity analysis model produces a loss in fair value in the fixed maturity portfolio of (i) $173.2 million and $170.0 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates (including impacts of changes in credit spreads), and (ii) $340.0 million and $333.2 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 100 basis point parallel increase in interest rates (including impacts of changes in credit spreads).
For more information, 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. ” Our sensitivity analysis model produces a loss in fair value in the fixed maturity portfolio of (i) $216.5 million and $173.2 million as of December 31, 2025 and 2024, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates (including impacts of changes in credit spreads), and (ii) $428.5 million and $340.0 million as of December 31, 2025 and 2024, respectively, based on a hypothetical and instantaneous 100 basis point parallel increase in interest rates (including impacts of changes in credit spreads).
Our sensitivity analysis model produces a loss in fair value of our debt obligations of (i) $48.4 million and $54.0 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates, and (ii) $95.3 million and $106.3 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 100 basis point parallel increase in interest rates.
Our sensitivity analysis model produces a loss in fair value of our debt obligations of (i) $52.2 million and $48.4 million as of December 31, 2025 and 2024, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates, and (ii) $102.7 million and $95.3 million as of December 31, 2025 and 2024, respectively, based on a hypothetical and instantaneous 100 basis point parallel increase in interest rates.
For additional information, refer to “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Investments” and Notes 4 and 7 to the Consolidated Financial Statements included elsewhere in this Report. 63
For additional information, refer to “Item 1A – Risk Factors – Financial Risks – Our investment portfolio is subject to credit, liquidity and other risks that may adversely affect our results of operations and financial condition ,” “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Investments” and Notes 4 and 7 to the Consolidated Financial Statements included elsewhere in this Report.
Interest Rate Risk Interest rate risk is the possibility that the fair value of liabilities will change more or less than the market value of investments in response to changes in interest rates, including changes in investment yields and changes in spreads due to credit risks and other factors.
The carrying value of our investment portfolio at December 31, 2025 and 2024 was $10.06 billion and $8.54 billion, respectively, of which 85% and 84% was invested in fixed maturity securities, respectively. 60 Interest Rate Risk Interest rate risk is the possibility that the fair value of liabilities will change more or less than the market value of investments in response to changes in interest rates, including changes in investment yields and changes in spreads due to credit risks and other factors.
Removed
The carrying value of our investment portfolio at December 31, 2024 and 2023 was $8.54 billion and $8.22 billion, respectively, of which 84% was invested in fixed maturity securities.
Removed
Dollar and other foreign currencies may materially and adversely affect our results of operations. ” The following table summarizes the net assets (liabilities) denominated in foreign currencies as of December 31, 2024 and 2023 and the sensitivity to a hypothetical strengthening of the U.S. dollar.

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