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What changed in ASSURANT, INC.'s 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of ASSURANT, INC.'s 2022 and 2023 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 2023 report.

+518 added−549 removedSource: 10-K (2024-02-15) vs 10-K (2023-02-17)

Top changes in ASSURANT, INC.'s 2023 10-K

518 paragraphs added · 549 removed · 413 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

135 edited+54 added−34 removed99 unchanged
Biggest changeGlobal Housing Years Ended December 31, 2022 2021 2020 Net earned premiums, fees and other income by product: Lender-placed Insurance $ 1,124.0 $ 1,065.9 $ 1,052.5 Multifamily Housing 482.4 482.3 451.6 Specialty and Other 404.0 393.2 397.9 Total $ 2,010.4 $ 1,941.4 $ 1,902.0 Segment Adjusted EBITDA $ 302.0 $ 357.1 $ 318.0 Segment equity (1) $ 1,433.2 $ 1,399.0 $ 1,471.2 (1) Segment equity does not include components of AOCI, which is primarily comprised of net unrealized gains on securities, net of taxes.
Biggest changeIn addition, our mobile results may fluctuate quarter to quarter due to the actual and anticipated timing and availability of the release of new devices and carrier promotional programs. 7 Global Housing Years Ended December 31, 2023 2022 2021 Net earned premiums, fees and other income by product: Homeowners $ 1,663.4 $ 1,402.2 $ 1,373.2 Renters and Other 479.5 482.4 482.2 Total $ 2,142.9 $ 1,884.6 $ 1,855.4 Segment Adjusted EBITDA $ 574.2 $ 246.0 $ 321.6 Segment equity (1) $ 1,318.9 $ 1,272.8 $ 1,313.2 (1) Segment equity does not include components of AOCI, which is primarily comprised of net unrealized gains on securities, net of taxes.
We intend to leverage those insights with investments in emerging technologies and operations, including digital-first solutions, to introduce innovative products and services and continuously adapt those offerings to the changing needs of the consumers in the connected world. Value chain integration and customer experience.
We intend to leverage those insights with investments in emerging technologies and operations, including digital-first solutions, to introduce innovative products and services and continuously adapt those offerings to the changing needs of consumers in the connected world. Value chain integration and customer experience.
To that end, the laws of the various jurisdictions establish insurance departments with broad powers with respect to such things as: • licensing; • capital, surplus and dividends; • underwriting requirements and limitations (including, in some cases, minimum or target loss ratios); • entrance into and exit from markets; • introduction, cancellation and termination of certain coverages; • statutory accounting and annual statement disclosure requirements; • product types, policy forms and mandated insurance benefits; • premium rates; • fines, penalties and assessments; • claims practices, including occasional regulatory requirements to pay claims on terms other than those mandated by underlying policy contracts; • transactions between affiliates; • the form and content of disclosures to consumers; 14 • the type, amounts and valuation of investments; • annual tests of solvency and reserve adequacy; • assessments or other surcharges for guaranty funds and the recovery of assessments through premium increases; and • market conduct and sales practices of insurers and agents.
To that end, the laws of the various jurisdictions establish insurance departments with broad powers with respect to such things as: • licensing; • capital, surplus and dividends; • underwriting requirements and limitations (including, in some cases, minimum or target loss ratios); • entrance into and exit from markets; • introduction, cancellation and termination of certain coverages; • statutory accounting and annual statement disclosure requirements; • product types, policy forms and mandated insurance benefits; • premium rates; • fines, penalties and assessments; • claims practices, including occasional regulatory requirements to pay claims on terms other than those mandated by underlying policy contracts; • transactions between affiliates; • the form and content of disclosures to consumers; • the type, amounts and valuation of investments; • annual tests of solvency and reserve adequacy; • assessments or other surcharges for guaranty funds and the recovery of assessments through premium increases; and • market conduct and sales practices of insurers and agents.
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 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.” 14 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.
Within this hybrid environment, we introduced a new framework to support enterprise engagement. We accelerated our ongoing real estate consolidation to support work-from-home arrangements given our increasingly hybrid workforce, while making necessary investments in key facilities and markets to support the long-term strategy of the Company. Learning and Development Learning and development are essential to Assurant’s success.
Within this hybrid environment, we introduced a new framework to support enterprise engagement. We accelerated our ongoing real estate consolidation to support work-from-home arrangements given our increasingly hybrid workforce, while making necessary investments in key facilities and markets to support the long-term strategy of the Company. 12 Learning and Development Learning and development are essential to Assurant’s success.
A majority of our employees now work virtually on a full-time or part-time basis and while we will continue to encourage purposeful in-person engagement to support our culture, team development and product innovation, we believe our hybrid work model will remain a key competitive advantage to support the evolving needs of our customers and employees.
A majority of our employees work virtually on a full-time or part-time basis and while we will continue to encourage purposeful in-person engagement to support our culture, team development and product innovation, we believe our hybrid work model will remain a key competitive advantage to support the evolving needs of our customers and employees.
Ratings are an important factor in establishing the competitive position of insurance companies. Rating agencies also use an “outlook statement” of “positive,” “stable,” “negative” or “developing” to indicate a medium- or long-term trend in credit fundamentals which, if continued, may lead to a rating change.
Ratings are an important factor in establishing the competitive position of insurance companies. 13 Rating agencies also use an “outlook statement” of “positive,” “stable,” “negative” or “developing” to indicate a medium- or long-term trend in credit fundamentals which, if continued, may lead to a rating change.
The goal is to provide U.S. regulators with a method to aggregate the available capital and the minimum capital of each entity in a group in a way that applies to all groups regardless of their structure in order to identify risks that may emanate from an insurer’s holding company system.
The goal is to provide U.S. regulators with a method to aggregate the available capital and the minimum capital of each entity in a group in a way that applies to all groups 15 regardless of their structure in order to identify risks that may emanate from an insurer’s holding company system.
We will continue to develop actions plans in areas for improvement and monitor our progress each year. Fostering Diversity, Equity and Inclusion At Assurant, we believe diversity, equity and inclusion (“DE&I”) fosters innovation and creates growth opportunities by strengthening employee engagement for the benefit of all of our stakeholders.
We will continue to develop actions plans in areas for improvement and monitor our progress each year. Fostering Diversity, Equity and Inclusion At Assurant, we believe diversity, equity and inclusion (“DE&I”) fosters innovation and creates growth opportunities by strengthening employee engagement for the benefit of our stakeholders.
Across Global Lifestyle and Global Housing, we compete for business, customers, agents and other distribution relationships with many insurance companies, warranty and protection companies, financial services companies, mobile device repair and logistics companies, technology and software companies and specialized competitors that focus on one market, product or service.
Across Global Lifestyle and Global Housing, we compete for business, clients, customers, agents and other distribution relationships with many insurance companies, warranty and protection companies, financial services companies, mobile device repair and logistics companies, technology and software companies and specialized competitors that focus on one market, product or service.
Global Risk Management, in conjunction with various management 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 18 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 management 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.
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 loans tracked.
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.
Board of Directors and Committee Oversight The Board, directly and through its committees as described below and in their charters, oversees our risk management policies and practices, including our risk appetite, and discusses risk-related issues at least quarterly.
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.
However, the value of certain inventory will 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 and changes in client promotions, supply chain constraints, growing industry emphasis on cost containment and adverse foreign trade relationships.
In addition, various forms of direct and indirect federal regulation of insurance have been proposed from time to time, 15 including proposals for the establishment of an optional federal charter for insurance companies.
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.
Although the consumer financial services subject to the CFPB’s jurisdiction generally exclude insurance businesses, the CFPB may take the position that it has the authority to regulate certain non-insurance consumer 16 services we provide.
Although the consumer financial services subject to the CFPB’s jurisdiction generally exclude insurance businesses, the CFPB may take the position that it has the authority to regulate certain non-insurance consumer services we provide.
We pay the cost of repairing or replacing these 5 consumer goods in the event of loss, theft, accidental damage, mechanical breakdown or electronic malfunction after the manufacturer's warranty expires.
We pay the cost of repairing or replacing these consumer goods in the event of loss, theft, accidental damage, mechanical breakdown or electronic malfunction after the manufacturer's warranty expires.
Our diverse workforce spans a wide range of roles and skills to further our vision of supporting the advancement of the connected world. While 80% 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 diverse workforce spans a wide range of roles and skills to further our vision of supporting the advancement of the connected world. While 77% 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 2022 results reinforced that our culture is a differentiator and strengths identified last year in the areas of overall engagement, goal setting, management support, work environment and flexibility, and diversity and inclusion continue to trend positively. Areas for continuing improvement include career development opportunities and managing workload.
The 2023 results reinforced that our culture is a differentiator and strengths identified last year in the areas of overall engagement, goal setting, management support, work environment and flexibility, and diversity and inclusion continue to trend positively. Areas for continuing improvement include career development opportunities and managing workload.
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, 2022: 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, 2023: A.M.
We use our website ( www.assurant.com ) and social media accounts, including Twitter ( @Assurant ), LinkedIn ( @Assurant ) and Facebook ( @AssurantInc ), 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 X (formerly Twitter) ( @Assurant ), LinkedIn ( @Assurant ) and Facebook ( @AssurantInc ), 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 NAIC has stated that the calculation will be a regulatory tool and will not constitute a requirement or standard. State legislatures began adoption of the group capital calculation model regulations in 2021 and state adoption is expected to continue in 2023. Investment Regulation.
The NAIC has stated that the calculation will be a regulatory tool and will not constitute a requirement or standard. State legislatures began adoption of the group capital calculation model regulations in 2021 and state adoption is expected to continue in 2024. Investment Regulation.
We continued to invest in merit increases, allocating more funding to front-line employees in recognition of the disproportionate impact of the current challenging economic environment. We have advanced our commitment to pay transparency, particularly in North America, by providing employees with base salary ranges for their role and grade beginning in 2023.
We continued to reward high performers and invest in merit increases, allocating more funding to front-line employees in recognition of the disproportionate impact of the current challenging economic environment. We have advanced our commitment to pay transparency, particularly in North America, by providing employees with base salary ranges for their role and grade beginning in 2023.
In addition, we provide tenant bonds as an alternative to security deposits, which allows our clients to offer a lower move-in cost option while minimizing the risk of loss from damages, and receivables management, which helps our clients to maximize the collection of amounts owed by prior tenants.
In addition, we provide tenant bonds as an alternative to security deposits, which allows our 8 clients to offer a lower move-in cost option while minimizing the risk of loss from damages, and receivables management, which helps our clients to maximize the collection of amounts owed by prior tenants. Other products.
In many areas, such as mental wellbeing, recognition and freedom of opinion, results trended more favorably against our 2021 engagement survey and at or above comparable industry benchmarks.
In many areas, such as mental wellbeing, recognition and freedom of opinion, results trended more favorably against our 2022 engagement survey and at or above comparable industry benchmarks.
See “Item 1A – Risk Factors – Legal and Regulatory Risks – Changes in tax laws and regulations could have a material adverse impact on our results of operations and financial condition.” International Regulation We are subject to regulation and supervision of our international operations in various jurisdictions.
For more information, see “Item 1A – Risk Factors – Legal and Regulatory Risks – Changes in tax laws and regulations could have a material adverse impact on our results of operations and financial condition.” International Regulation We are subject to regulation and supervision of our international operations in various jurisdictions.
The Board and the Nominating Committee annually review the CEO succession plan and succession plans for senior executives, which includes emergency successors for each role, with the goal to ensure we have the right leadership in place to execute the Company’s long-term strategic plans.
The Board and the Compensation & Talent Committee annually review the CEO succession plan and succession plans for senior executives, which includes emergency successors for each role, with the goal to ensure we have the right leadership in place to execute the Company’s long-term strategic plans.
Typically, these agreements have terms of three to five years and allow us to integrate our systems with those of our clients. Multifamily Housing products are distributed primarily through property management companies and affinity marketing partners. We offer our Specialty and Other insurance programs primarily through manufactured housing lenders and retailers, 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 retailers, along with independent specialty agents.
Independent specialty agents also distribute flood products and other specialty property products. Global Housing is dependent on a few clients, and the loss of any one or more such clients could have a material adverse effect on our results of operations and cash flows.
Independent specialty agents also distribute flood products and other property products. Global Housing is dependent on a few clients, and a reduction in business with or the loss of any one or more such clients could have a material adverse effect on our results of operations and cash flows.
We continue to monitor the state of the overall housing market and the potential impact of loan modifications, forbearances and foreclosure delays, including the impact to REO volumes. Should the housing market deteriorate for a prolonged period, we would expect a longer-term increase in our placement rates over time.
We continue to monitor the state of the overall housing market and the potential impact of loan modifications, forbearances and foreclosure delays, including the impact to REO volumes. Should the housing market deteriorate for a prolonged period, we could experience a longer-term increase in our placement rates over time.
See “Item 1A – Risk Factors – Business, Strategic and Operational Risks – “ Our mobile business is subject to the risk of declines in the value and availability of mobile devices in our inventory, and to export compliance and other risks.” Seasonality 7 We experience seasonal fluctuations that impact demand in each of our lines of business.
See “Item 1A – Risk Factors – 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.” Seasonality We experience seasonal fluctuations that impact demand in each of our lines of business.
Our Products and Services The key lines of business in Global Lifestyle are: Connected Living, which includes mobile device solutions, extended service contracts (insurance policies and warranties) (“ESCs”) for consumer electronics and appliances, and credit and other insurance products; and Global Automotive.
Our Products and Services The key lines of business in Global Lifestyle are: Connected Living, which 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 credit and other insurance products; and Global Automotive.
The NAIC, state and territory regulators and professional organizations have considered and are considering various proposals that may alter or increase state and territory authority to regulate insurance companies and insurance holding companies. For example, at their Spring 2021 meeting, the NAIC adopted the NAIC Real Property Lender-Placed Insurance Model Act (the “LPI Model Act”).
The NAIC, state and territory regulators and professional organizations have considered and are considering various proposals that may alter or increase state and territory authority to regulate insurance companies and insurance holding companies. For example, in 2021, the NAIC adopted the NAIC Real Property Lender-Placed Insurance Model Act (the “LPI Model Act”).
Our risk governance structure is headed by the management-level Enterprise Risk Committee, comprised of the Chief Executive Officer, the Chief Financial Officer, the Chief Strategy and Risk Officer, the Chief Legal Officer, the Treasurer, Chief Internal Auditor, Global Ethics and Compliance Officer, and other members of the risk leadership team.
Our risk governance structure is headed by the management-level Enterprise Risk Committee, comprised of the CEO, the Chief Financial Officer, the Chief Marketing and Risk Officer, the Chief Legal Officer, the Treasurer, Chief Internal Auditor, Global Ethics and Compliance Officer, and other members of the risk leadership team.
The Board reviews management’s assessment of the Company’s key enterprise risks and receives a risk management update from the Chief Strategy and Risk Officer annually and management’s strategy with respect to each risk. The Nominating and Corporate Governance Committee coordinates Board and committee oversight of the key risks.
The Board reviews management’s assessment of the Company’s key enterprise risks and receives a corresponding risk management update annually and management’s strategy with respect to each risk. The Nominating and Corporate Governance Committee coordinates Board and committee oversight of the key enterprise risks.
The Finance and Risk Committee has primary oversight responsibility of the Global Risk Management function and corresponding risk activities, and receives risk management updates at least quarterly from the Chief Strategy and Risk Officer and the Global Head of Risk that include the identification, assessment, reporting and mitigation of existing and emerging key enterprise risks.
The Finance and Risk Committee has primary oversight responsibility of the Global Risk Management function and corresponding risk activities, and receives risk management reports at least quarterly from the Chief Marketing and Risk Officer that include the identification, assessment, reporting and mitigation of existing and emerging key enterprise risks.
Through our Global Lifestyle segment, we provide mobile device solutions, extended service products and related services for consumer electronics and appliances, and credit and other insurance products (referred to as “Connected Living”); and vehicle protection, leased and financed solutions 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 services and other related services (referred to as “Global Automotive”).
We generally deploy capital to invest in and grow our businesses, pay dividends and repurchase shares. 3 Our approach to mergers, acquisitions and other growth opportunities reflects our strategic and disciplined approach to capital management. We target new businesses and capabilities, organically and through acquisitions, that complement or support our strategy. 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 support our strategy. Our approach to mergers, acquisitions and other growth opportunities reflects our strategic and disciplined approach to capital management. 3 Investing in talent.
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, 2022, Assurant had approximately 13,700 employees in 21 countries.
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, 2023, Assurant had approximately 13,600 employees in 21 countries representing 68 nationalities.
Management Oversight Global Risk Management is headed by our Global Head of Risk. Global Risk Management develops risk assessment and risk management policies, and facilitates the identification and assessment, monitoring and reporting, and mitigation of risks. The Company uses the three lines of defense operating model to provide structure around risk management and internal controls.
Management Oversight Global Risk Management develops risk assessment and risk management policies, and facilitates the identification and assessment, monitoring and reporting, and mitigation of risks. The Company uses the three lines of defense operating model to provide structure around risk management and internal controls.
Typically, these agreements are multi-year with terms generally between three and five years and allow us to integrate our administrative systems with those of our clients.
Typically, our agreements in Global Lifestyle are multi-year with terms generally between three and five years and allow us to integrate our administrative systems with those of our clients.
Distribution and Clients Global Lifestyle operates globally, with approximately 82% of its revenue from North America (the U.S. and Canada), 8% from Latin America (Brazil, Argentina, Puerto Rico, Mexico, Chile, Colombia and Peru), 5% from Europe (the United Kingdom (the “U.K.”), France, Italy, Spain, Germany and the Netherlands) and 5% from Asia Pacific (South Korea, China (and Hong Kong), Japan, Australia, India, Singapore and New Zealand) for the year ended December 31, 2022.
Distribution and Clients Global Lifestyle operates globally, with approximately 83% of its revenue from North America (the U.S. and Canada), 7% from Latin America (Brazil, Argentina, Puerto Rico, Mexico, Chile, Colombia and Peru), 6% from Europe (the United Kingdom (the “U.K.”), France, Italy, Spain, Germany and the Netherlands) and 4% from Asia Pacific (Japan, Australia, New Zealand, South Korea, India, Singapore and China (including Hong Kong) for the year ended December 31, 2023.
See “Item 1A – Risk Factors – Business, Strategic and Operational Risks – Our revenues and profits may decline if we are unable to maintain relationships with significant clients, distributors and other parties, or renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues. ” Our Addressable Markets and Market Activity The mobile protection market is a large and growing global market, characterized by growth in the “Internet of Things” and evolving wireless standards, particularly the advent of 5G.
See “Item 1A – Risk Factors – Business, Strategic and Operational Risks – Our revenues and profits may decline if we are unable to maintain relationships with significant clients, distributors and other parties, or renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues. ” Our Addressable Markets and Market Activity The mobile protection market is a large and growing global market with evolving wireless standards.
Examples include U.S. and local customs and trade regulations for the movement of mobile devices across geographic borders; health, safety, labor and environmental regulations, including those impacting our mobile supply chain operations; U.S. and international laws and regulations broadly relating to the performance, transparency and reporting of environmental, social and governance matters, including the SEC’s proposed rules to enhance climate-related disclosures, including greenhouse gas emissions, governance of climate-related risks and climate-related financial statement metrics; and antitrust and competition-related laws and regulations that may impact future transactions or business practices.
Examples include U.S. and local customs and trade regulations for the movement of mobile devices across geographic borders; health, safety, labor and environmental regulations, including those impacting our mobile supply chain operations; U.S. and international laws and regulations broadly relating to the performance, transparency and reporting of environmental, social and governance matters, including the SEC’s proposed rules to enhance climate-related disclosures; U.S. and international laws and regulations relating to the use of artificial intelligence; and antitrust and competition-related laws and regulations that may impact future transactions or business practices.
In addition to the overall market, our lender-placed results are also impacted by inflation, which has and may continue to increase the costs of paying claims, and the mix of loans we service. The U.S. renters insurance market is a growing market with new building development, occupancy and relocation trends.
In addition to the overall market, our lender-placed results are also impacted by inflation and the costs of paying claims, and the mix of loans we service. The U.S. renters insurance market is a growing market with new building development, high occupancy and favorable relocation trends.
Global Risk Management Governance We employ a risk governance structure, overseen by our Board and senior management and coordinated by the Global Risk Management function, to provide a common framework for evaluating the risks embedded in and across our businesses and functional areas, developing risk appetites, managing these risks, and identifying current and future risk challenges and opportunities. 17 Global risk management is the responsibility of the Chief Strategy and Risk Officer, who leads the Global Risk Management function and reports directly to the Chief Executive Officer and reports at least quarterly to the Finance and Risk Committee of the Board and to the Board; and the Global Head of Risk, who reports directly to the Chief Strategy and Risk Officer.
Global Risk Management Governance We employ a risk governance structure, overseen by our Board and senior management and led by the Global Risk Management function, to provide a common framework for evaluating the risks embedded in and across our businesses and functional areas, developing risk appetites, managing these risks, and identifying current and future risk challenges and opportunities. 18 Global risk management is the responsibility of the Chief Marketing and Risk Officer, who leads the Global Risk Management function, 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.
Recognizing the benefit of flexible work arrangements for our business, customers and employees, in 2022, we enabled a long-term shift to a hybrid work model to support our business and talent strategy.
Recognizing the benefit of flexible work arrangements for our business, customers and employees, we continued to enable a long-term shift to a hybrid work model to support our business and talent strategy.
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 with a connected world.
Global Lifestyle is dependent on a few clients, in particular mobile device carriers, and the loss of any one or more such clients could have a material adverse effect on our results of operations and cash flows.
Global Lifestyle is dependent on a few clients, in particular mobile service providers, and a reduction in business with or the loss of any one or more such clients could have a material adverse effect on our results of operations and cash flows.
Lender-placed Insurance: We provide lender-placed homeowners, lender-placed manufactured housing and lender-placed flood insurance as described below. Lender-placed homeowners insurance . Lender-placed homeowners insurance consists principally of fire and dwelling hazard insurance offered through our lender-placed program.
Homeowners: We provide lender-placed homeowners, manufactured housing and flood insurance, as well as voluntary manufactured housing, condominium and homeowners insurance. Lender-placed homeowners insurance . Lender-placed homeowners insurance consists principally of fire and dwelling hazard insurance offered through our lender-placed program.
Connected Living: Through partnerships with mobile device carriers, retailers, multiple system operators (“MSOs”), original equipment manufacturers (“OEMs”) and financial and other institutions, we underwrite and provide administrative support and related services for ESCs. These contracts provide consumers with coverage on mobile devices and consumer electronics and appliances, protecting them from certain covered losses.
Connected Living: Through partnerships with mobile service providers (including carriers, retailers, original equipment manufacturers (“OEMs”) and cable operators) and financial and other institutions, we underwrite and provide administrative support and related services for extended service contracts. These contracts provide consumers with coverage on mobile devices and consumer electronics and appliances, protecting them from certain covered losses.
As of December 31, 2022, approximately 64% of our employees were frontline workers, inclusive of hourly roles such as customer care, claims administration and mobile repair and logistics. The remaining 36% were in managerial roles, inclusive of salaried employees engaged in an array of business and support functions. As of December 31, 2022, 60% of our global workforce were female.
As of December 31, 2023, approximately 63% of our employees were frontline workers, predominantly in hourly roles such as customer care, claims administration, mobile repair and logistics. The remaining 37% were in managerial roles, predominantly salaried employees engaged in an array of business and support functions. As of December 31, 2023, 60% of our global workforce identified as female.
Ratings Independent rating organizations periodically review the financial strength of insurers, including many of our insurance subsidiaries. Financial strength ratings represent the opinions of rating agencies regarding the ability of an insurance company to meet its financial obligations to policyholders and contract holders. These ratings are not applicable to our common stock or debt securities.
Financial strength ratings represent the opinions of rating agencies regarding the ability of an insurance company to meet its financial obligations to policyholders and contract holders. These ratings are not applicable to our common stock or debt securities.
As we continue to evolve our product and service capabilities and respond to client and consumer needs, we expect to accelerate the pace of innovation for our integrated offerings and drive additional value through a superior, digital-first customer experience. Deploying our capital strategically. We intend to maintain our strong financial position and our prudent capital management approach.
As we continue to evolve our product and service capabilities and respond to client and consumer needs, we expect to accelerate the pace of innovation for our integrated offerings and drive additional value through a superior, digital-first customer experience. Deploying our capital strategically. Our strong financial position provides us with flexibility to strategically deploy our capital.
This business is 100% reinsured to the U.S. government. Distribution and Clients Global Housing establishes long-term relationships with leading mortgage lenders and servicers, manufactured housing lenders, property managers and financial, insurance and other institutions. Lender-placed Insurance products are distributed primarily through mortgage lenders, mortgage servicers and financial and other institutions. The majority of our lender-placed agreements are exclusive.
Distribution and Clients Global Housing establishes long-term relationships with leading mortgage lenders and servicers, manufactured housing lenders, property managers, and financial, insurance and other institutions. Lender-placed insurance products are distributed primarily through mortgage lenders, mortgage servicers and financial and other institutions. The majority of our lender-placed agreements are exclusive.
Segments The composition of our reportable segments matches how we view and manage our business. For additional information on our segments, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations” and Note 6 to the Consolidated Financial Statements included elsewhere in this Report.
For additional information on our segments, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Results of Operations” and Note 6 to the Consolidated Financial Statements included elsewhere in this Report.
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 thereby affect us or our clients. Tax Reform . On December 22, 2017, the U.S.
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.
As our service offerings expand, we expect to generate a more diversified mix of business and earnings, with decreasing exposure to catastrophe risk. Providing integrated offerings through a superior, digital-first customer experience .
As our offerings continue to expand, we expect to generate a more diversified mix of business and earnings. Providing integrated offerings through a superior, digital-first customer experience .
The first line of defense is comprised of the business and functional areas that are responsible for the day-to-day management of Company’s business operations and related risks. The second line of defense provides independent oversight of risk-taking activities in the first line and is comprised of the Company’s Global Risk Management function and other enterprise staff control functions.
The first line of defense is comprised of the business and functional areas that are responsible for the daily management of Company’s business operations and related risks. The second line of defense provides independent oversight of risk-taking activities in the first line and is comprised of the Company’s Global Risk Management and Compliance functions.
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, targeted employee surveys and our enterprise-wide listening program designed to expand opportunities for anonymous, real-time feedback between managers and employees. Key topics covered include our culture, diversity, equity and inclusion, learning and development, wellbeing and recognition.
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, targeted employee surveys and our enterprise-wide listening program designed to expand opportunities for anonymous, real-time feedback between managers and employees.
For example, seasonality for ESCs and VSCs aligns with the seasonality of the retail and automobile markets.
For example, seasonality for extended service contracts and VSCs aligns with the seasonality of the retail and automobile markets.
In Connected Living, we partner with mobile device carriers, retailers, MSOs, OEMs and financial and other institutions to market our mobile device solutions and with some of the largest OEMs, consumer electronics retailers, appliance retailers (including e-commerce retailers) and MSOs to market our ESC products and related services.
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.
See “Item 1A – Risk Factors – Business, Strategic and Operational Risks – Our revenues and profits may decline if we are unable to maintain relationships with significant clients, distributors and other parties, or renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues.” Our Addressable Markets and Market Activity With respect to the lender-placed market, placement rates have been and are expected to continue to be generally flat.
See “Item 1A – Risk Factors – Business, Strategic and Operational Risks – Our revenues and profits may decline if we are unable to maintain relationships with significant clients, distributors and other parties, or renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues.” Our Addressable Markets and Market Activity In the lender-placed market, placement rates have increased in certain areas due to reduced availability of voluntary homeowners’ insurance.
Our Chief Administrative Officer has direct oversight and responsibility for our DE&I strategy. Additionally, the Nominating and Corporate Governance Committee is committed to including women and minority candidates in the pool of qualified candidates from which Board nominees are chosen and will continue to review its processes and procedures to ensure that diverse candidates are included.
Additionally, the Nominating and Corporate Governance Committee is committed to including women and minority candidates in the pool of qualified candidates from which Board nominees are chosen and will continue to review its processes and procedures to ensure that diverse candidates are included.
For ancillary products, 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 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 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.
We are a responsible employer with a culture that values diversity, equity and inclusion, and recognizes the importance of investing in employee talent. For additional information, refer to “– Human Capital Resources” below. Impact on society.
We are a responsible employer with a culture that believes diversity, equity and inclusion are critical to support business growth, and we recognize the importance of investing in talent as we look to deliver a superior employee experience. For additional information, refer to “– Human Capital Resources” below. Impact on society.
We seek to leverage consumer insights, together with extensive capabilities, to identify and anticipate the needs of our clients and the consumers they serve.
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 actively engage to strengthen the communities where we live and work worldwide while operating our business and managing our investments with a meaningful environmental commitment. Customer commitment. We deliver differentiated experiences by being customer-centric and anticipating the needs of the people we serve. Integrity and ethics. We adhere to unwavering standards of integrity, ethics, governance, privacy and information security.
We actively engage to strengthen the communities where we live and work worldwide while operating our business, managing our investments, and evolving our product offerings to ensure we maintain a strong environmental commitment. Customer commitment. We deliver differentiated experiences by being customer-centric and anticipating the needs of the people we serve. Integrity and ethics.
Our strategy is to provide integrated service offerings to our clients that address all aspects of the insurance, ESC or warranty, 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.
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.
As of December 31, 2022, women comprised 60% of our global workforce, 43% at the managerial levels, 18% at the Assurant Management Committee level and 31% of our Board; and 53% of our U.S. workforce, 44% at the managerial levels, 18% at the Assurant Management Committee level and 23% of our Board identified as racially or ethnically diverse.
As of December 31, 2023, those identifying as women comprised 60% of our global workforce, 43% at the managerial levels, 11% at the Assurant Management Committee level and 31% of our Board; and 54% of our U.S. workforce, 45% at the managerial levels, 22% at the Assurant Management Committee level and 31% of our Board identified as racially or ethnically diverse.
A N/A N/A Voyager Indemnity Insurance Company A N/A N/A (1) A.M. Best financial strength ratings range from “A++” (superior) to “D” (poor). Ratings of A fall under the “excellent” category, which is the second highest of A.M. Best’s seven ratings categories. A.M.
A+ N/A N/A Voyager Indemnity Insurance Company A+ N/A N/A (1) A.M. Best financial strength ratings range from “A+” (superior) to “D” (poor). A second “+” or a “-” may be appended to ratings from categories A+ to C to indicate relative position within a category. Ratings of A+ fall under the “superior” category, which is the highest of A.M.
The Enterprise Risk Committee reviews the most significant risks, the alignment to the risk appetite of the Company, and the mitigation and remediation plans that correspond to these risks.
The Enterprise Risk Committee reviews the Company’s key enterprise risks, the alignment to the risk appetite of the Company, and the mitigation and remediation plans for these risks.
We monitor pricing adequacy based on a variety of factors and adjust pricing as required, subject to regulatory constraints.
We monitor pricing adequacy based on a variety of factors and adjust pricing as required, subject to regulatory constraints, including through a built-in annual inflation guard feature.
ComFrame applies to entities that meet the IAIS’s criteria for IAIGs and that are so designated by their group-wide supervisor. The NAIC previously adopted changes to the Model Insurance Holding Company System Regulatory Act to allow state insurance regulators in the U.S. to be designated as group-wide supervisors for U.S.-based IAIGs.
The NAIC previously adopted changes to the Model Insurance Holding Company System Regulatory Act to allow state insurance regulators in the U.S. to be designated as group-wide supervisors for U.S.-based IAIGs.
While smartphone penetration in the U.S., Japanese and European markets is high, other markets are less mature and present growth opportunities. Global adoption of 5G by subscribers is a high priority for mobile device carriers in all markets. The worldwide used and refurbished smartphone market is also expected to continue to grow.
While smartphone penetration in the U.S., Japanese and European markets is high, other markets are less mature and present growth opportunities. Global adoption of 5G by subscribers is a high priority for mobile service providers.
Through our Global Housing segment, we provide lender-placed homeowners insurance, lender-placed manufactured housing insurance and lender-placed flood insurance (referred to as “Lender-placed Insurance”); renters insurance and related products (referred to as “Multifamily Housing”); and voluntary manufactured housing insurance, voluntary homeowners insurance and other specialty products (referred to as “Specialty and Other”).
Through our Global Housing segment, we provide 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 Finance and Risk Committee also focuses on risks relating to investments, capital management and catastrophe reinsurance. The Compensation Committee focuses on risks relating to executive retention and compensation plan design, and the Nominating and Corporate Governance Committee focuses on risks relating to director and management succession.
The Finance and Risk Committee also focuses on risks relating to investments, capital management and catastrophe reinsurance. The Compensation and Talent Committee focuses on risks relating to management succession, talent management and compensation plan design, and the Nominating and Corporate Governance Committee focuses on risks relating to director succession and has ultimate oversight responsibility for how we manage sustainability.
Anti-bribery and corruption laws and regulations continue to be implemented and/or enhanced across most of the jurisdictions in which we operate. Cybersecurity and Privacy Regulation 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. For example, the E.U.
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. For example, the E.U.
Our longer-term strategic planning process, overseen by our Board, prioritized three multiyear ESG areas of focus: • Talent: Foster a diverse, equitable and inclusive culture to drive innovation for the benefit of all stakeholders, • Products: Help customers thrive in a connected world, and • Climate: Operate to minimize our carbon footprint and align our commitments to enhance climate action and environment performance.
Our longer-term strategic planning process, overseen by our Board, prioritized three multiyear ESG strategic focus areas: • Talent: We aspire to foster a diverse, equitable and inclusive culture to drive innovation for the benefit of all stakeholders; • Products: We aspire to help customers thrive in a connected world; and • Climate: We aspire to operate in ways that minimize our carbon footprint and align our commitments to enhance climate action and environmental performance. 4 For additional information on our Sustainability priorities, including our most recent Sustainability report, please refer to our website at https://www.assurant.com/about-us/sustainability .
We assess the performance and potential of current incumbents, identify and assess potential successors, and create targeted development plans to strengthen the preparedness and diversity of our talent pipeline. Annually, we conduct a comprehensive talent review to discuss potential successors of our Management Committee and other key leadership roles.
We assess the performance and potential of current incumbents, identify and assess potential successors, and create targeted development plans to strengthen the preparedness and diversity of our talent pipeline.

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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. • Due to the structure of our commission program, 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.
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. 21 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 .
Financial Risks • Our actual claims losses may exceed our reserves for claims, requiring us to establish additional reserves or to incur additional expense for settling unreserved liabilities, which could have a material adverse effect on our results of operations, profitability and capital. • We may be unable to accurately predict and price for claims and other costs, which could reduce our profitability. • A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition. • A credit rating agency downgrade of our corporate senior debt rating could materially and adversely impact on our business. • Fluctuations in the exchange rate of the U.S.
Financial Risks • Our actual claims losses may exceed our reserves for claims, requiring us to establish additional reserves or to incur additional expense for settling unreserved liabilities, which could have a material adverse effect on our results of operations, profitability and capital. • We may be unable to accurately predict and price for claims and other costs, which could reduce our profitability. • A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition. • A credit rating agency downgrade of our corporate senior debt rating could materially and adversely impact our business . • Fluctuations in the exchange rate of the U.S.
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, and 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.
A failure or perceived failure in our achievement of various sustainability initiatives and goals we may from time to time announce, or an actual or perceived increase in related risks as a result of our or our industry’s business activities, may subject us to negative publicity.
A failure or perceived failure in our achievement of various sustainability initiatives and goals we announce from time to time, or an actual or perceived increase in related risks as a result of our or our industry’s business activities, may subject us to negative publicity.
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.
Furthermore, our domestic and international insurance subsidiaries are subject to extensive regulatory oversight, including: restrictions and requirements related to licensing; capital, surplus and dividends; underwriting limitations; the ability to enter, exit and continue to operate in markets; statutory accounting and other disclosure requirements; the ability to provide, terminate or cancel certain coverages; premium rates, including regulatory ability to disapprove or reduce the premium rates companies may charge; trade and claims practices; product forms, including regulatory ability to disapprove new product filings; content of disclosures to consumers; type, amount and valuation of investments; assessments or other surcharges for guaranty funds and companies’ ability to recover assessments through premium increases; and market conduct and sales practices.
Our domestic and international insurance subsidiaries are subject to extensive regulatory oversight, including: restrictions and requirements related to licensing; capital, surplus and dividends; underwriting limitations; the ability to enter, exit and continue to operate in markets; statutory accounting and other disclosure requirements; the ability to provide, terminate or cancel certain coverages; premium rates, including regulatory ability to disapprove or reduce the premium rates companies may charge; trade and claims practices; product forms, including regulatory ability to disapprove new product filings; content of disclosures to consumers; type, amount and valuation of investments; assessments or other surcharges for guaranty funds and companies’ ability to recover assessments through premium increases; and market conduct and sales practices.
See “ – Technology, Cybersecurity and Privacy Risks – We could incur significant liability if our information 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, Florida, where we have significant operations.
If we are unable to maintain information technology systems, infrastructure, procedures (including technology continuity planning and recovery testing) and controls that function effectively without interruption and securely (including through a failure to replace or update redundant or obsolete hardware, applications or software systems), or to update or integrate our systems, we may not be able to service our clients and their customers, successfully offer our products, grow our business and account for transactions in an appropriate and timely manner, and our relationships with clients could be adversely affected.
If we are unable to maintain technology systems, infrastructure, procedures (including technology continuity planning and recovery testing) and controls that function effectively without interruption and securely (including through a failure to replace or update redundant or obsolete hardware, applications or software systems), or to update or integrate our systems, we may not be able to service our clients and their customers, successfully offer our products, grow our business and account for transactions in an appropriate and timely manner, and our relationships with clients could be adversely affected.
See “ – We face risks associated with our international operations ” and “ – Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations. ” 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.
See “ – We face risks associated with our international operations ” and “ – Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations. ” 26 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.
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.
Even in the absence of a takeover attempt, the 40 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.
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 .
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. ” 29 A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition .
Because the techniques used to obtain unauthorized access or sabotage systems change frequently and generally are not identified until they are launched against a target, we may be unable to anticipate these techniques or implement adequate preventative measures, resulting in potential data loss or other damage to information technology systems.
Because the techniques used to obtain unauthorized access or sabotage systems change frequently and generally are not identified until they are launched against a target, we may be unable to anticipate these techniques or implement adequate preventative measures, resulting in potential data loss or other damage to technology systems.
To the extent we engage international vendors or third parties to provide services or carry out business functions, we are exposed to the risks that accompany operations in a foreign jurisdiction, including international economic and political conditions, foreign laws and regulations, fluctuations in currency values and, potentially, increased risk of data breaches.
To the extent we engage international vendors or third parties to provide services or carry out business functions, we are exposed to the risks that accompany operations in a foreign jurisdiction, including international economic and political conditions, foreign laws and regulations, fluctuations in currency values and increased risk of data breaches.
The global capital and credit markets have experienced periods of uncertainty, volatility and disruption, including the possibility of a U.S. government 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 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.
See “ – 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. ” Catastrophe and non-catastrophe losses can vary widely and could significantly exceed our expectations.
See “ – Macroeconomic, Political and Global Market Risks – General economic, 27 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. ” Catastrophe and non-catastrophe losses can vary widely and could significantly exceed our expectations.
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.
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 30 significant decline in our expected future cash flows due to changes in company-specific factors or the broader business climate.
See “Item 7A – Quantitative and Qualitative Disclosures About Market Risk –Interest Rate Risk” in this Report. 30 Our investment portfolio is subject to credit, liquidity and other risks that may adversely affect our results of operations and financial condition.
See “Item 7A – Quantitative and Qualitative Disclosures About Market Risk –Interest Rate Risk” in this Report. Our investment portfolio is subject to credit, liquidity and other risks that may adversely affect our results of operations and financial condition.
As a result, we may face certain operating, financial, legal and regulatory compliance and other risks relating to these joint ventures, franchises and entities, including risks related to the financial strength of joint venture partners, franchisees and other investors; the willingness of joint venture partners, franchisees and other investors to provide adequate funding for the joint venture, franchise or entity; differing goals, strategies, priorities or objectives between us and joint venture partners, franchisees or other investors; our inability to unilaterally implement actions, policies or procedures with respect to the joint venture, franchise or entity that we believe are favorable; legal and regulatory compliance risks relating to actions of the joint venture, franchise, entity, joint venture partners, franchisees or other investors; the risk that the actions of joint venture partners, franchisees and other investors could damage our brand image and reputation; and the risk that we will be unable to resolve disputes with joint venture partners, franchisees or other investors.
As a result, we may face certain operational, financial, legal and regulatory compliance and other risks relating to these joint ventures, franchises and entities, including risks related to the financial strength of joint venture partners, franchisees and other investors; the willingness of joint venture partners, franchisees and other investors to provide adequate funding for the joint venture, franchise or entity; differing goals, strategies, priorities or objectives between us and joint venture partners, franchisees or other investors; our inability to unilaterally implement actions, policies or procedures with respect to the joint venture, franchise or entity that we believe are favorable; legal and regulatory compliance risks relating to actions of the joint venture, franchise, entity, joint venture partners, franchisees or other investors; the risk that the actions of joint venture partners, franchisees and other investors could damage our brand image and reputation; and the risk that we will be unable to resolve disputes with joint venture partners, franchisees or other investors.
We have from time to time experienced operational resiliency issues, including the unavailability of information technology systems upon which our clients rely. Such failures could result in loss of business and adversely affect our financial condition and results of operations.
We have from time to time experienced operational resiliency issues, including the unavailability of technology systems upon which our clients rely. Such failures could result in loss of business and adversely affect our financial condition and results of operations.
See “ – Technology, Cybersecurity and Privacy Risks – The failure to effectively maintain and modernize our information 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, 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.
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.
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. 31 We are subject to interest rate risk in our investment portfolio.
In addition, climate change may make it more difficult to predict 33 and model catastrophes, reducing our ability to accurately price our exposure to such events and mitigate risks. As a result, actual results may differ materially from our modeled results.
In addition, climate change may make it more difficult to predict and model catastrophes, reducing our ability to accurately price our exposure to such events and mitigate risks. As a result, actual results may differ materially from our modeled results.
Through reinsurance, we have sold or exited businesses that could again become our direct financial and administrative responsibility if the reinsurers become insolvent . In the past, we have sold, and in the future we may sell, businesses through reinsurance ceded to third parties. We have exited certain businesses through reinsurance.
Through reinsurance, we have sold or exited businesses that could again become our direct financial and administrative responsibility if the reinsurers become insolvent . In the past, we have sold, and in the future we may sell, businesses through reinsurance ceded to third parties.
Our information technology systems must be continually patched and upgraded to protect against vulnerabilities, including zero-day threats, and we are at risk that cyber attackers exploit these vulnerabilities before they have been addressed.
Our technology systems must be continually patched and upgraded to protect against vulnerabilities, including zero-day threats, and we are at risk that cyber attackers exploit these vulnerabilities before they have been addressed.
Compliance with the TCJA and the IRA may require the collection of information not regularly produced within the Company, the use of estimates in our Consolidated Financial Statements, the exercise of significant judgment in accounting for its provisions and increase costs.
Compliance with the IRA may require the collection of information not regularly produced within the Company, the use of estimates in our Consolidated Financial Statements, the exercise of significant judgment in accounting for its provisions and increase costs.
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 efficiencies, synergies and cost savings, including the incurrence of unexpected integration 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; failure to achieve anticipated revenues, earnings, cash flows, business opportunities and growth prospects; 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; 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.
Some of the Company’s information technology systems and software are legacy-type systems that are less efficient and require an ongoing commitment of significant resources to maintain or upgrade to current standards, including business continuity procedures.
Some of the Company’s technology systems and software are legacy-type systems that are less efficient and require an ongoing commitment of significant resources to maintain or upgrade to current standards, including business continuity procedures.
Our ability to modernize our information technology systems and infrastructure requires us to execute large-scale, complex programs and projects, which rely on the commitment of significant financial and managerial resources and effective planning and management processes.
Our ability to modernize our technology systems and infrastructure requires us to execute large-scale, complex programs and projects, which rely on the commitment of significant financial and managerial resources and effective planning and management processes.
For more information on the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us in 2022 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 2023 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.
The success of our business depends on our ability to maintain effective, secure and reliable information technology systems and infrastructure and to modernize them to support current and new clients and grow in an efficient and cost-effective manner.
The success of our business depends on our ability to maintain effective, secure and reliable technology systems and infrastructure and to modernize them to support current and new clients and grow in an efficient and cost-effective manner.
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.
We may be unable to integrate the systems of the 36 businesses we acquire into our environment in a timely manner, which could further increase these risks until such integration takes place.
We face risks associated with joint ventures, franchises and investments in which we share ownership or management with third parties. From time to time, we have and may continue to enter into joint ventures and franchises and invest in entities in which we share ownership or management with third parties.
We face risks associated with joint ventures, franchises and investments in which we share ownership or management with third parties. From time to time, we have entered into and may continue to enter into joint ventures and franchises and invest in entities in which we share ownership or management with third parties.
In certain circumstances, we may not have complete control over governance, financial reporting, operations, legal and regulatory compliance or other matters relating to such joint ventures, 25 franchises or entities.
In certain circumstances, we may not have complete control over governance, financial reporting, operations, legal and regulatory compliance, or other matters relating to such joint ventures, franchises or entities.
Technology, Cybersecurity and Privacy Risks The failure to effectively maintain and modernize our information technology systems and infrastructure and integrate those of acquired businesses could adversely affect our business.
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.
Our systems are also subject to compromise from internal threats such as improper action by employees and third parties who may have otherwise legitimate access to our systems. Our call centers subject us to additional risk from internal threats due to access to personal data. Moreover, we face the ongoing challenge of managing access controls in a complex environment.
Our systems have also been subject to compromise from internal threats such as improper action by employees and third parties who may have otherwise legitimate access to our systems. Our call centers subject us to additional risk from internal threats due to access to personal data. Moreover, we face the ongoing challenge of managing access controls in a complex environment.
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 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, 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.
As of December 31, 2022, fixed maturity securities represented approximately 84% and below investment grade securities (rated “BB” or lower by nationally recognized statistical rating organizations) represented approximately 5% 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, 2023, fixed maturity securities represented approximately 84% and below investment grade securities (rated “BB” or lower by nationally recognized statistical rating organizations) represented approximately 5% 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.
A downgrade could adversely affect our liquidity and ability to access liquidity quickly, increase our borrowing costs, decrease demand for our debt securities, and increase the expense and difficulty of financing our operations, including temporary financing for subsidiaries necessary to address any immediate liquidity concerns, or refinancing our existing indebtedness on similar or more favorable terms.
A downgrade could adversely affect our liquidity and ability to access liquidity quickly or at all, increase our borrowing costs, decrease demand for our debt securities, and increase the expense and difficulty of financing our operations, including temporary financing for subsidiaries necessary to address any immediate liquidity concerns, or refinancing our existing indebtedness on similar or more favorable terms.
Our investments in commercial mortgage loans on real estate (which represented approximately 4% of our total investments as of December 31, 2022) 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 4% of our total investments as of December 31, 2023) 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 clients may terminate these contracts or fail to renew them if the subsidiaries’ ratings fall below these minimums. Termination of or failure to renew these agreements could materially and adversely affect our results of operations and financial condition. 28 A credit rating agency downgrade of our corporate senior debt rating could materially and adversely impact on our business.
Our clients may terminate these contracts or fail to renew them if the subsidiaries’ ratings fall below these minimums. Termination of or failure to renew these agreements could materially and adversely affect our results of operations and financial condition. A credit rating agency downgrade of our corporate senior debt rating could materially and adversely impact our business.
Investment returns are an important part of our profitability. Our investments are subject to market-wide risks and fluctuations, including in the fixed maturity and equity securities markets, which could impair our profitability, financial condition and cash flows. Further, in pricing our products and services, we incorporate assumptions regarding returns on our investments.
Investment returns are an important part of our profitability. Our investments are subject to market-wide risks and fluctuations, including in the fixed maturity, equity securities and real estate markets, which could impair our profitability, financial condition and cash flows. Further, in pricing our products and services, we incorporate assumptions regarding returns on our investments.
In the future, these types of incidents could result in confidential, restricted personal or proprietary information being lost or stolen, surreptitiously modified, rendered inaccessible for any period of time, or maliciously made public, including client, employee or Company data, which could have a material adverse effect on our business.
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.
We are dependent on vendors and other third parties to maintain reliable network systems that provide adequate speed and data capacity.
We are dependent on vendors and other third parties to maintain reliable and secure network systems that provide adequate speed and data capacity.
As of December 31, 2022, 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, 2023, 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 information 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 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, to operate our business and securely process, transmit and store electronic information. 35 This electronic information includes confidential and other sensitive information, including personal data, that we receive from our customers, vendors and other third parties.
In December 2022, we announced restructuring initiatives that include realigning our organizational structure and talent to support our business strategy, which has resulted in severance and employee benefits charges, and accelerating ongoing real estate consolidation efforts to support work-from-home arrangements.
In 2022 and 2023, we announced restructuring initiatives that include realigning our organizational structure and talent to support our business strategy, which has resulted in severance and employee benefits charges, and accelerating ongoing real estate consolidation efforts to support work-from-home arrangements.
A disaster or other business continuity event on a significant scale or affecting our key businesses or our data centers, or our inability to successfully and quickly recover from such an event and any legislative and regulatory responses thereto, could materially interrupt our business operations and result in material financial loss, loss of human capital, regulatory actions, reputational harm, loss of customers or damaged customer relationships, legal liability and other adverse consequences.
A disaster or other business continuity event on a significant scale or affecting our key businesses or our data centers, or our inability to successfully and quickly recover from such an event and any legislative and regulatory responses thereto, could materially interrupt our business operations and result in material financial loss, loss of human capital, regulatory actions, reputational harm, loss of clients and their customers or damaged relationships, legal liability and other adverse consequences.
Ratings are important considerations in establishing the competitive position of insurance companies. A.M. Best rates most of our domestic and significant international operating insurance subsidiaries. Moody’s and S&P rate three of our domestic operating insurance subsidiaries. These ratings are subject to periodic review by A.M.
Ratings are important considerations in establishing the competitive position of insurance companies. A.M. Best rates most of our domestic and certain international operating insurance subsidiaries. Moody’s and S&P rate three of our domestic operating insurance subsidiaries. These ratings are subject to periodic review by A.M.
The process of integrating the information technology systems of the businesses we acquire is complex and exposes us to additional risk.
The process of integrating the technology systems of the businesses we acquire is complex and exposes us to additional risk.
See “ – Financial Risks – Our actual claims losses may exceed our reserves for 26 claims, requiring us to establish additional reserves or to incur additional expense for settling unreserved liabilities, which could have a material adverse effect on our results of operations, profitability and capital. ” Because Global Housing’s lender-placed homeowners and lender-placed manufactured housing insurance products are designed to automatically provide property coverage for client portfolios, our exposure to certain catastrophe-prone locations, such as Florida, California, Texas, North Carolina and South Carolina, may increase.
See “ – Financial Risks – Our actual claims losses may exceed our reserves for claims, requiring us to establish additional reserves or to incur additional expense for settling unreserved liabilities, which could have a material adverse effect on our results of operations, profitability and capital. ” Because Global Housing’s lender-placed homeowners and lender-placed manufactured housing insurance products are designed to automatically provide property coverage for client portfolios, our exposure to certain catastrophe-prone locations, such as Florida, California and Texas, may increase.
We could experience significant financial and reputational harm as a result of operational resiliency issues, including if our information technology systems are breached, sensitive client or Company data are compromised, surreptitiously modified, rendered inaccessible for any period of time or maliciously 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 or made public, or if we fail to make adequate disclosures to the public or law enforcement agencies following any such event.
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 identify new areas for 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. • Our mobile business is subject to the risk of declines in the value and availability of mobile devices in our inventory, and to export 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. 19 • 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.
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. 20 • 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.
We depend in large part on our sales representatives and segment executives to develop and maintain client relationships. Our inability to attract and retain effective sales representatives and executives with key client relationships could materially adversely affect our results of operations and financial condition.
We depend in large part on our sales representatives and business executives to develop and maintain client relationships. Our inability to attract and retain effective sales representatives and executives with key client relationships could materially adversely affect our results of operations and financial condition.
If a business continuity event occurs, we could lose Company, customer, vendor and other third-party data, lose significant processing capability or experience interruptions to our operations or delivery of products and services to our clients and their customers, which has occurred from time to time and which could have a material adverse effect on our business, financial condition and results of operations.
If a business continuity event occurs, we could lose Company, customer, vendor and other third-party data, lose significant processing capability, or experience interruptions to our operations, the availability of our systems or delivery of products and services to our clients and their customers, which has occurred from time to time and which could have a material adverse effect on our business, financial condition and results of operations.
As we continue to improve operating efficiencies, we rely on vendors and other third parties, including independent contractors, to conduct business and provide services to our clients. For example, we use vendors and other third parties for business, investment management, information technology, operations, facilities management and other services.
As we continue to improve operating efficiencies, we rely on vendors and other third parties, including independent contractors, to conduct business and provide services to our clients. We use vendors and other third parties for business, investment management, technology, operations, facilities management and other services.
See “ – We may be unable to find suitable acquisition candidates at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively or identify new areas for organic growth, which could have a material adverse effect on our business, financial condition and results of operations .” We rely on the continued service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce to achieve our long-term strategy.
See “ – 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 rely on the continued service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce to achieve our long-term strategy.
We communicate with and distribute our products and services ultimately to individual consumers. From time to time, regulators, consumer advocacy groups and the media may focus their attention on our products and services, which may subject us to negative publicity.
We communicate with and distribute our products and services ultimately to individual customers. From time to time, regulators, consumer advocacy groups, the media and individual customers may focus their attention on our products and services, which may subject us to negative publicity.
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, 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, 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.
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, including compensation; and fluctuations in the labor market, including rising wages and competition for talent, which has increased due to persistent labor shortages and wage inflation.
Doing so may be difficult due to many factors, including fluctuations in economic and 23 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, which has generally increased due to persistent labor shortages and wage inflation.
This risk is heightened in certain countries and regions in which we operate that are subject to higher potential threat of terrorist attacks, military conflicts, political instability and data breaches.
This risk is heightened in certain countries and regions in which we operate that are subject to higher potential threat of terrorist incidents, military conflicts, political instability and data breaches.
We rely on manual processes and procedures that subject us to increased risk of error and internal control failure compared to automated processes. In second quarter 2022, we identified and disclosed certain accounting errors.
We rely on manual processes and procedures that subject us to increased risk of error and internal control failure compared to automated processes. In 2022, we identified and disclosed certain accounting errors.
Moreover, our failure to comply with laws or regulations in one jurisdiction may result in increased regulatory scrutiny by other regulatory agencies in that jurisdiction or regulatory agencies in other jurisdictions. The cost of compliance and the consequences of non-compliance could have a material adverse effect on our business, results of operations and financial condition.
Moreover, our failure to comply with laws or regulations in one jurisdiction may result in increased regulatory scrutiny by other regulatory agencies in that jurisdiction or regulatory agencies in other jurisdictions. The costs of compliance and the consequences of non-compliance could have a material adverse effect on our 37 business, results of operations and financial condition.
Various state and federal regulatory authorities have taken actions with respect to our Lender-placed Insurance business, including the multistate market conduct examination and related RSA.
Various state and federal regulatory authorities have taken actions with respect to our lender-placed insurance business, including the multistate market conduct examination and related RSA in 2017.
Our information technology systems and safety control systems and those of our vendors and other third parties with whom we share sensitive information are vulnerable to, and in some cases have been subject to, damage or interruption from a variety of external threats, including cyber attacks, computer viruses, malware and ransomware, as well as targeted attacks against our employees, which recently have been increasing in frequency.
Our technology systems and safety control systems and those of our vendors and other third parties with whom we share sensitive information are vulnerable to, and in some cases have been subject to, damage or interruption from a variety of external threats, including cybersecurity incidents, computer viruses, malware and ransomware, as well as targeted attacks against our employees, which have been increasing in frequency.
If we fail to comply with applicable laws and regulations, we may be subject to investigations, criminal penalties, civil remedies or other adverse consequences, including fines, injunctions, loss of 36 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.
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.
Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations . We compete for business, customers, agents and other distribution relationships with many insurance companies, financial services companies, mobile device repair and logistics companies, technology and software companies and specialized 21 competitors that focus on one market, product or service.
Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations . We compete for business, clients, customers, agents and other distribution relationships with many insurance companies, warranty and protection companies, financial services companies, mobile device repair and logistics companies, technology and software companies and specialized competitors that focus on one market, product or service.
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 could 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, 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.
For additional information on the significant international regulations that apply to us, including data protection regulations, and the risks relating thereto, see “Item 1 – Business – Regulation – International Regulation” in this Report, “ – 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 “ – Technology, Cybersecurity and Privacy 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 in our inventory, and to export 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, ” “ – 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 example, we face the risk of 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; exposure to undeveloped or evolving legal systems, which may result in unpredictable or inconsistent application of laws and regulations; exposure to commercial, political, legal or regulatory corruption; political, economic or other instability in countries in which we conduct business, including possible terrorist acts; the imposition of sanctions, tariffs, trade barriers or other protectionist laws or business practices that favor local competition, increase costs and may otherwise adversely affect our business; inflation and foreign exchange rate fluctuations; diminished ability to enforce our contractual rights; potential 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 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 undeveloped or evolving legal systems, which may result in 25 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; the imposition of sanctions, tariffs, trade barriers or other protectionist laws or business practices that favor local competition, increase costs and may otherwise adversely affect our business; inflation and foreign exchange rate fluctuations; 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, management has classified Argentina’s economy as highly inflationary in accordance with GAAP accounting requirements and, as a result, the functional currency of our Argentina subsidiaries was changed from the local currency to U.S. Dollars and their non-U.S. Dollar denominated monetary assets and liabilities were subject to remeasurement resulting in losses.
Dollar as the functional currency of our international subsidiaries. For example, Argentina’s economy is classified as highly inflationary in accordance with GAAP accounting requirements and, as a result, the functional currency of our Argentina subsidiaries was changed from the local currency to U.S. Dollars and their non-U.S. Dollar denominated monetary assets and liabilities were subject to remeasurement resulting in losses.
Our common stock price and trading volume could materially fluctuate in response to a number of events and factors, including: variations in our quarterly operating results, including against expectations; 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; regulatory developments affecting our products or services; and negative publicity relating to us or our competitors.
In addition, actual investment income and cash flows from investments that carry prepayment risk, such as mortgage-backed and other asset-backed securities, may differ from those anticipated at the time of investment as a result of interest rate fluctuations. Recent periods have been characterized by increasing interest rates.
In addition, actual investment income and cash flows from investments that carry prepayment risk, such as mortgage-backed and other asset-backed securities, may differ from those anticipated at the time of investment as a result of interest rate fluctuations. Recent periods have been characterized by an overall increase in interest rates.
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 ongoing conflict in Ukraine, China-Taiwan relations and supply chain disruptions, and other events outside of our control, such as a major epidemic or a pandemic, including the COVID-19 pandemic, political or civil unrest, or the possibility of a U.S. government 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, and may materially adversely affect our business, results of operations and financial condition.
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, and may materially adversely affect our business, results of operations and financial condition.
Equity securities represented approximately 4% of our total investments as of December 31, 2022. 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 3% of our total investments as of December 31, 2023. 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 addition, we have migrated certain data, and may increasingly migrate data, to the cloud hosted by third-party providers. We are at risk of a cyber attack involving a vendor or other third party, which could result in a breakdown of such third party’s data protection measures or access to our infrastructure through the third party.
In addition, we have migrated certain data, and may increasingly migrate data, to the cloud hosted by third-party providers. We are at risk of a cybersecurity incident involving a vendor or other third party, which could result in a breakdown of such third party’s data protection measures or access to our infrastructure through the third party.
These parties’ failure to remit all premiums collected or to pay claims on our behalf on a timely and accurate basis could have an adverse effect on our results of operations. 32 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 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 .
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.
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.
General inflationary pressures and supply chain disruptions, including within the current environment, has and may continue to increase the costs of paying claims, including for materials and labor, particularly in our Global Housing segment.
General inflationary pressures and supply chain disruptions, including within the current environment, has and may continue to increase the costs of paying claims, including for materials and labor, particularly in our Global Housing and Global Automotive businesses.
While management has certified that our internal control over financial reporting was effective as of December 31, 2022, because internal control over financial reporting is complex, there can be no assurance that our internal control over financial reporting will be effective 29 in the future.
While management has certified that our internal control over financial reporting was effective as of December 31, 2023, 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.
In addition, the global talent market and shift to remote or hybrid work arrangements at many companies, including us, have significantly increased competition for highly-skilled personnel, who are no longer limited to opportunities within a particular geographic area.
In addition, the global talent market and shift to remote or hybrid work arrangements at many companies, including us, have significantly increased competition for highly-skilled personnel, who are no longer limited to opportunities within a particular geographic area, and may decrease employee engagement.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeItem 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 39 information technology center.
Biggest changeItem 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.
Removed
In addition, our Miami, Florida location serves as a shared office space supporting our Global Lifestyle and Global Housing businesses, and Global Housing has operations centers located in Florence, South Carolina and Springfield, Ohio. We lease office space and device care centers globally, with terms ranging from month-to-month to fifteen years.
Added
During third quarter 2023, we submitted an agreement to sell our Miami, Florida location, which had served as a shared office space supporting our Global Lifestyle and Global Housing businesses, to a potential acquiror, which is subject to review, approval, execution and other conditions.
Removed
We believe that our owned and leased properties are sufficient to support our current business operations.
Added
For more information on the potential sale, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.” We lease office space and device care centers globally, with terms ranging from month-to-month to thirteen years. We believe that our owned and leased properties are sufficient to support our current business operations.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings For a description of any material pending legal proceedings in which we are involved, see “Commitments and Contingencies – Legal and Regulatory Matters” in Note 28 to the Consolidated Financial Statements included elsewhere in this Report, which is hereby incorporated by reference.
Biggest changeItem 3. Legal Proceedings For a description of any material pending legal proceedings in which we are involved, see “Commitments and Contingencies – Legal and Regulatory Matters” in Note 27 to the Consolidated Financial Statements included elsewhere in this Report, which is hereby incorporated by reference.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeDividends 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 $549.5 million for the year ended December 31, 2022, of which $349.4 million was generated by our U.S. domiciled insurance subsidiaries. 42 Payments of dividends on shares of common stock are subject to the preferential rights of any preferred stock that the Board may create from time to time.
Biggest changeDividends 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 $772.6 million for the year ended December 31, 2023, of which $622.7 million was generated by our U.S. domiciled insurance subsidiaries.
The graph assumes that the value of the investment in our common stock and each index was $100 on December 31, 2017 and that all dividends were reinvested. 41 Total Values/Annual Return Percentages (Includes reinvestment of dividends) Initial Investment at 12/31/2017 TOTAL VALUES December 31, Security / Index 2018 2019 2020 2021 2022 Assurant, Inc.
The graph assumes that the value of the investment in our common stock and each index was $100 on December 31, 2018 and that all dividends were reinvested. Total Values/Annual Return Percentages (Includes reinvestment of dividends) Initial Investment at 12/31/2018 TOTAL VALUES December 31, Security / Index 2019 2020 2021 2022 2023 Assurant, Inc.
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, 2017 through December 31, 2022 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, as the published industry index.
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, 2018 through December 31, 2023 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, as the published industry index.
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, 2023, 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 $344.7 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, 2024, 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 $592.4 million.
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 10, 2023, there were approximately 209 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 9, 2024, there were approximately 203 registered holders of record of our common stock.
Common Stock (9.18) % 49.78 % 6.09 % 16.46 % (18.34) % S&P 500 Index (4.38) 31.49 18.40 28.71 (18.11) S&P 400 MidCap Index (11.08) 26.20 13.66 24.76 (13.06) S&P 500 Multi-line Insurance Index (24.44) 35.64 (18.28) 45.78 9.67 Issuer Purchases of Equity Securities The table below provides information regarding purchases of our common stock during the fourth quarter of 2022.
Common Stock 49.78 % 6.09 % 16.46 % (18.34) % 37.52 % S&P 500 Index 31.49 18.40 28.71 (18.11) 26.29 S&P 400 MidCap Index 26.20 13.66 24.76 (13.06) 16.44 S&P 500 Multi-line Insurance Index 35.64 (18.28) 45.78 9.67 12.21 43 Issuer Purchases of Equity Securities The table below provides information regarding purchases of our common stock during the fourth quarter of 2023.
Period in 2022 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 89,887 $ 144.63 89,887 $ 274.5 November 1 – November 30 — — — 274.5 December 1 – December 31 — — — 274.5 Total fourth quarter 89,887 $ 144.63 89,887 $ 274.5 (1) Shares purchased pursuant to the May 2021 publicly announced share repurchase authorizations of up to $900.0 million aggregate cost at purchase of outstanding common stock.
Period in 2023 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 31 204,054 $ 147.01 204,054 $ 174.5 November 1 – November 30 100,411 165.98 100,411 757.8 December 1 – December 31 497,301 167.57 497,301 674.5 Total fourth quarter 801,766 $ 162.14 801,766 $ 674.5 (1) Shares purchased pursuant to the May 2021 publicly announced share repurchase authorizations of up to $900.0 million aggregate cost at purchase of outstanding common stock.
As of December 31, 2022, $274.5 million aggregate cost at purchase remained unused under the repurchase authorization.
In November 2023, the Board authorized an additional share repurchase program for up to $600.0 million aggregate cost at purchase of outstanding common stock. As of December 31, 2023, $674.5 million aggregate cost at purchase remained unused under the repurchase authorizations.
Common Stock $ 100.00 $ 90.82 $ 136.03 $ 144.32 $ 168.07 $ 137.25 S&P 500 Index 100.00 95.62 125.72 148.85 191.58 156.88 S&P 400 MidCap Index 100.00 88.92 112.21 127.54 159.12 138.34 S&P 500 Multi-line Insurance Index 100.00 75.56 102.49 83.75 122.09 133.90 ANNUAL RETURN PERCENTAGES Years Ended December 31, Security / Index 2018 2019 2020 2021 2022 Assurant, Inc.
Common Stock $ 100.00 $ 149.78 $ 158.91 $ 185.06 $ 151.12 $ 207.82 S&P 500 Index 100.00 131.49 155.68 200.37 164.08 207.21 S&P 400 MidCap Index 100.00 126.20 143.44 178.95 155.58 181.15 S&P 500 Multi-line Insurance Index 100.00 135.64 110.85 161.59 177.22 198.86 ANNUAL RETURN PERCENTAGES Years Ended December 31, Security / Index 2019 2020 2021 2022 2023 Assurant, Inc.
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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 total benefits, losses and expenses was partially offset by a $78.7 million, or 6%, decrease in policyholder benefits, primarily due to the run-off of certain global mobile programs in our Connected Living business and lower loss experience in select ancillary products in Global Automotive, partially offset by growth across our Global Automotive and Connected Living businesses. 53 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, 2022 2021 2020 Revenues: Net earned premiums $ 1,874.0 $ 1,796.6 $ 1,758.3 Fees and other income 136.4 144.8 143.7 Net investment income 80.0 78.0 68.5 Total revenues 2,090.4 2,019.4 1,970.5 Benefits, losses and expenses: Policyholder benefits 915.2 798.8 794.3 Underwriting, selling, general and administrative expenses 873.2 863.5 858.2 Total benefits, losses and expenses 1,788.4 1,662.3 1,652.5 Global Housing Adjusted EBITDA $ 302.0 $ 357.1 $ 318.0 Impact of reportable catastrophes $ 172.7 $ 155.1 $ 178.5 Net earned premiums, fees and other income: Lender-placed Insurance $ 1,124.0 $ 1,065.9 $ 1,052.5 Multifamily Housing 482.4 482.3 451.6 Specialty and Other 404.0 393.2 397.9 Total $ 2,010.4 $ 1,941.4 $ 1,902.0 Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021 Adjusted EBITDA decreased $55.1 million, or 15%, to $302.0 million for Twelve Months 2022 from $357.1 million for Twelve Months 2021.
Biggest changePolicyholder benefits increased $251.3 million, or 19%, primarily due to ongoing elevated claims costs in Global Automotive, as described above, partially offset by a mobile program contract change that resulted in lower retention of losses net of reinsurance. 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, 2023 2022 Revenues: Net earned premiums $ 2,014.5 $ 1,751.6 Fees and other income 128.4 133.0 Net investment income 109.7 75.8 Total revenues 2,252.6 1,960.4 Benefits, losses and expenses: Policyholder benefits 862.0 884.1 Underwriting, selling, general and administrative expenses 816.4 830.3 Total benefits, losses and expenses 1,678.4 1,714.4 Global Housing Adjusted EBITDA $ 574.2 $ 246.0 Impact of reportable catastrophes $ 111.0 $ 171.4 Net earned premiums, fees and other income: Homeowners $ 1,663.4 $ 1,402.2 Renters and Other 479.5 482.4 Total $ 2,142.9 $ 1,884.6 Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022 Adjusted EBITDA increased $328.2 million, or 133%, to $574.2 million for Twelve Months 2023 from $246.0 million for Twelve Months 2022, mainly due to growth in Homeowners from higher lender-placed average insured values, policies in force and premium rates; a $60.4 million decrease in reportable catastrophes; lower non-catastrophe loss experience, including $54.1 million of favorable reserve development in Twelve Months 2023 compared to $15.5 million of adverse reserve development in Twelve Months 2022; and higher net investment income.
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 2022 and none are expected to be made in 2023. See Note 24 to the Consolidated Financial Statements included elsewhere in this Report for more information.
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 2023 and none are expected to be made in 2024. See Note 24 to the Consolidated Financial Statements included elsewhere in this Report for more information.
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.
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 56 relevant.
For risks related to modeling, see “Item 1A – Risk Factors – Financial Risks – 60 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. ” Alternative asset portfolio asset allocations are analyzed for significant lines of business.
For risks related to modeling, see “Item 1A – Risk Factors – Financial Risks – Actual results may differ materially from the analytical models we use to assist in our decision-making in key areas such as pricing, catastrophe risks, reserving and capital management. ” Alternative asset portfolio asset allocations are analyzed for significant lines of business.
Non-Core Operations Short duration contracts in non-core operations consist of the sharing economy and small commercial products previously reported within Global Housing. While the contracts are classified as short duration, the coverages were predominantly commercial liability and have a long reporting and settlement tail compared to property coverages which make up most of our core operations.
Non-Core Operations Short duration contracts in non-core operations primarily consist of the sharing economy and small commercial products previously reported within Global Housing. While the contracts are classified as short duration, the coverages were predominantly commercial liability and have a long reporting and settlement tail compared to property coverages which make up most of our core operations.
The determination of the best estimate is based on many factors, including: • the nature and extent of the underlying assumptions; • the quality and applicability of historical data - whether internal or industry data; • current and expected future economic and market conditions; • regulatory, legislative, and judicial considerations; • the extent of data segmentation - data should be homogeneous yet credible enough for loss development methods to apply; • trends in loss frequency and severity for various causes of loss; • consideration of the distribution of loss reserves, management’s selection of the best estimate that may exceed an estimate based on median values, suggesting that favorable development may be more likely than unfavorable development; and 47 • hindsight testing of prior loss estimates - the loss estimates on some product lines will vary from actual loss experience more than others.
The determination of the best estimate is based on many factors, including: • the nature and extent of the underlying assumptions; • the quality and applicability of historical data - whether internal or industry data; • current and expected future economic and market conditions; • regulatory, legislative, and judicial considerations; 48 • the extent of data segmentation - data should be homogeneous yet credible enough for loss development methods to apply; • trends in loss frequency and severity for various causes of loss; • consideration of the distribution of loss reserves, management’s selection of the best estimate that may exceed an estimate based on median values, suggesting that favorable development may be more likely than unfavorable development; and • hindsight testing of prior loss estimates - the loss estimates on some product lines will vary from actual loss experience more than others.
In periods of declining interest rates, mortgage prepayments generally increase and mortgage-backed securities, commercial mortgage obligations and bonds are more likely to be prepaid or redeemed as borrowers seek to borrow at lower interest rates. Therefore, in these circumstances we may be required to reinvest those funds in lower interest-earning investments.
In periods of declining interest rates, mortgage prepayments generally increase and mortgage-backed 46 securities, commercial mortgage obligations and bonds are more likely to be prepaid or redeemed as borrowers seek to borrow at lower interest rates. Therefore, in these circumstances we may be required to reinvest those funds in lower interest-earning investments.
Reinsurance recoverables include amounts we are owed by reinsurers for claims paid as well as those included in reserve estimates that are subject to the reinsurance. 46 We use a probability of default and loss given default methodology in estimating an expected credit loss allowance, whereby the credit ratings of reinsurers are used in determining the probability of default.
Reinsurance recoverables include amounts we are owed by reinsurers for claims paid as well as those included in reserve estimates that are subject to the reinsurance. We use a probability of default and loss given default methodology in estimating an expected credit loss allowance, whereby the credit ratings of reinsurers are used in determining the probability of default.
If these observable inputs are not available, or observable inputs are not determinable, unobservable 48 inputs or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of investments. The methodologies, assumptions and inputs utilized are described in Note 10 to the Consolidated Financial Statements.
If these observable inputs are not available, or observable inputs are not determinable, unobservable inputs or adjustments to observable inputs requiring management judgment are used to determine the estimated fair value of investments. The methodologies, assumptions and inputs utilized are described in Note 10 to the Consolidated Financial Statements.
Changes in certain assumptions could have a significant impact on the goodwill impairment assessment. 49 Should the operating results of these reporting units decline substantially compared to projected results, or should further interest rate declines increase the net unrealized investment portfolio gain position, we could determine that we need to perform an updated impairment test due to the potential impairment indicators, which may require the recognition of a goodwill impairment loss in any of the reporting units.
Changes in certain assumptions could have a significant impact on the goodwill impairment assessment. 50 Should the operating results of these reporting units decline substantially compared to projected results, or should further interest rate declines increase the net unrealized investment portfolio gain position, we could determine that we need to perform an updated impairment test due to the potential impairment indicators, which may require the recognition of a goodwill impairment loss in any of the reporting units.
The total gross reserve for fully reinsured runoff operations that was excluded was $607.9 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 18 to the Consolidated Financial Statements included elsewhere in this Report.
The total gross reserve for fully reinsured runoff operations that was excluded was $597.9 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 18 to the Consolidated Financial Statements included elsewhere in this Report.
The Credit Facility has a sublimit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for our commercial paper program or for general corporate purposes. We made no borrowings using the Credit Facility during Twelve Months 2022 and no loans were outstanding as of December 31, 2022.
The Credit Facility has a sublimit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for our commercial paper program or for general corporate purposes. We made no borrowings using the Credit Facility during Twelve Months 2023 and no loans were outstanding as of December 31, 2023.
In addition to the restructuring plan announced in December 2022, 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.
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.
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 carrying amounts and that there was no impairment for the Global Lifestyle and Global Housing reporting units as of October 1, 2022.
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 carrying amounts and that there was no impairment for the Global Lifestyle and Global Housing reporting units as of October 1, 2023.
The target minimum level of holding company liquidity, which can be used for unforeseen capital needs at our subsidiaries or liquidity needs at the holding company, is calibrated based on approximately one year of corporate operating losses and interest expenses.
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.
For the fourth quarter of 2022 quantitative assessment, had the net book value for of the reporting units exceeded its estimated fair value, the Company would have recognized a goodwill impairment loss for the difference up to the amount of goodwill allocated to the reporting unit.
For the fourth quarter of 2023 quantitative assessment, had the net book value for the reporting units exceeded its estimated fair value, the Company would have recognized a goodwill impairment loss for the difference up to the amount of goodwill allocated to the reporting unit.
Please see “Item 7A – Quantitative and Qualitative Disclosures About Market Risk” below for further details. Expenses Our expenses are primarily policyholder benefits, underwriting, selling, general and administrative expenses and interest expense. 45 Policyholder benefits are affected by our claims management programs, reinsurance coverage, contractual terms and conditions, regulatory requirements, economic conditions, and numerous other factors.
Please see “Item 7A – Quantitative and Qualitative Disclosures About Market Risk” below for further details. Expenses Our expenses are primarily policyholder benefits, underwriting, selling, general and administrative expenses and interest expense. Policyholder benefits are affected by our claims management programs, reinsurance coverage, contractual terms and conditions, regulatory requirements, economic conditions including inflation, and numerous other factors.
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 $549.5 million and $728.6 million for Twelve Months 2022 and Twelve Months 2021, 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 $772.6 million and $549.5 million for Twelve Months 2023 and Twelve Months 2022, respectively.
We had $1.54 billion in cash and cash equivalents as of December 31, 2022. 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 $1.63 billion in cash and cash equivalents as of December 31, 2023. 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.
Regulators or rating agencies could become more conservative in their methodology and criteria, increasing capital requirements for our insurance subsidiaries or the enterprise. In 2022, the following actions were taken by the rating agencies: A.M.
Regulators or rating agencies could become more conservative in their methodology and criteria, increasing capital requirements for our insurance subsidiaries or the enterprise. In September 2023, the following actions were taken by A.M.
In addition, across many of our businesses, we must respond to the threat of disruption and the 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, which has increased due to labor shortages and wage inflation.
Valuation and Recoverability of Goodwill Our goodwill related to acquisitions of businesses was $2.60 billion and $2.57 billion as of December 31, 2022 and 2021, 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 $2.61 billion and $2.60 billion as of December 31, 2023 and 2022, respectively. We review our goodwill annually in the fourth quarter for impairment, or more frequently if indicators of impairment exist.
For more information on these and other factors that could affect our results, see “Item 1A – Risk Factors.” Our results may also be impacted by our ability to continue to grow in the markets in which we operate, including in our Connected Living, Renters and Global Automotive businesses, which will be impacted by our ability to provide a superior digital-first customer experience, including from our investments in technology and digital initiatives, and capitalize on the smart home opportunity.
For more information on these and other factors that could affect our results, see “Item 1A – Risk Factors.” Our results may also be impacted by our ability to continue to grow in the markets in which we operate, including in our Connected Living and Global Automotive businesses, which will be impacted by our ability to provide a superior digital-first customer experience, including from our investments in technology and digital initiatives, capitalize on the connected home opportunity and investments to onboard and ramp-up new business.
A goodwill impairment loss is measured as the excess of the carrying value, including goodwill, of the reporting unit over its fair value. An impairment loss is limited to the amount of goodwill allocated to the reporting unit. Our Global Lifestyle operating segment is disaggregated into the following three reporting units: Connected Living, Global Automotive and Global Financial Services.
A goodwill impairment loss is measured as the excess of the carrying value, including goodwill, of the reporting unit over its fair value. An impairment loss is limited to the amount of goodwill allocated to the reporting unit. Our Global Lifestyle operating segment is disaggregated into two reporting units: Connected Living and Global Automotive.
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. ” 59 Holding Company As of December 31, 2022, we had approximately $446.1 million in holding company liquidity, $221.1 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, 2023, we had approximately $606.1 million in holding company liquidity, $381.1 million above our targeted minimum level of $225.0 million.
Cash flow forecasts at the consolidated and subsidiary levels are provided on a monthly basis, and we use trend and variance analyses to project future cash needs making adjustments to the forecasts when needed.
Cash Flows We monitor cash flows at the consolidated, holding company and subsidiary levels. Cash flow forecasts at the consolidated and subsidiary levels are provided on a monthly basis, and we use trend and variance analyses to project future cash needs making adjustments to the forecasts when needed.
For the year ending December 31, 2023, 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 $344.7 million. Our international and non-insurance subsidiaries provide additional sources of dividends.
For the year ending December 31, 2024, 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 $592.4 million. Our international and non-insurance subsidiaries provide additional sources of dividends.
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, 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, including the current period of inflationary pressures which have impacted claims costs primarily in the Homeowners and the Global Automotive businesses, may have a material adverse effect on our results of operations or financial condition.
See “Item 1A – Risk Factors – Financial Risks – Our actual claims losses may exceed our reserves for claims, requiring us to establish additional reserves or to incur additional expense for settling unreserved liabilities, which could have a material adverse effect on our results of operations, profitability and capital ” and “ – 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” for more detail on this risk.
See “Item 1A – Risk Factors – Financial Risks – Our actual claims losses may exceed our reserves for claims, requiring us to establish additional reserves or to incur additional expense for settling unreserved liabilities, which could have a material adverse effect on our results of operations, profitability and capital ” and “ – 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” for more detail on this risk. 47 Reinsurance Recoverables We utilize reinsurance for loss protection and capital management, business dispositions and client risk and profit sharing.
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 in our inventory, and to export compliance and other risks ” and “ – 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.” For Twelve Months 2022, net cash provided by operating activities from continuing operations was $596.9 million; net cash used in investing activities from continuing operations was $262.1 million; and net cash used in financing activities from continuing operations was $818.4 million.
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 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 2023, net cash provided by operating activities was $1.14 billion; net cash used in investing activities was $637.7 million; and net cash used in financing activities was $403.9 million.
As of December 31, 2022, we had exposure to $379.1 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, 2023, we had exposure to $369.5 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.
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 $532.1 million of holding company investment securities and cash, which we are not otherwise holding for a specific purpose as of the balance sheet date.
We 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 $690.0 million as of December 31, 2023) which we are not otherwise holding for a specific purpose as of the balance sheet date.
Net realized losses on investments and fair value changes to equity securities were $179.7 million for Twelve Months 2022 compared to net realized gains and fair value changes to equity securities of $128.2 million for Twelve Months 2021.
Net realized losses on investments and fair value changes to equity securities were $68.7 million for Twelve Months 2023 compared to net realized losses on investments and fair value changes to equity securities of $179.7 million for Twelve Months 2022.
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 and carrier promotional programs, as well as to changes in customer preferences. Our Homeowners revenues will be impacted by changes in the housing market.
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 Homeowners revenue is impacted by changes in the housing market.
Quantitative Impairment Testing In the fourth quarter of 2022, we performed a quantitative assessment for the Global Lifestyle and Global Housing reporting units given the uncertainty in macro-economic conditions, inflation concerns, and lingering COVID-19 impacts on industry performance.
Quantitative Impairment Testing In the fourth quarter of 2023, we performed a quantitative assessment for the Global Lifestyle and Global Housing reporting units given the uncertainty in macro-economic conditions and inflation concerns.
Our results also depend on our ability to profitably grow all of our businesses, including our Connected Living, Renters and Global Automotive businesses, and maintain our position in our Homeowners business.
Our results also depend on our ability to profitably grow our businesses, including our Connected Living and Global Automotive businesses, and the performance of our Homeowners business.
Reinsurance Recoverables We utilize reinsurance for loss protection and capital management, business dispositions and client risk and profit sharing. Reinsurance premiums paid are amortized as reductions to premium over the terms of the underlying reinsured policies. Amounts recoverable from reinsurers are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefits reserves.
Reinsurance premiums paid are amortized as reductions to premium over the terms of the underlying reinsured policies. Amounts recoverable from reinsurers are estimated in a manner consistent with claim and claim adjustment expense reserves or future policy benefits reserves.
These studies are conducted in accordance with formal company-wide Asset Liability Management guidelines. To complete a study for a particular line of business, models are developed to project asset and liability cash flows and balance sheet items under a varied set of plausible economic scenarios.
To complete a study for a particular line of business, models are developed to project asset and liability cash flows and balance sheet items under a varied set of plausible economic scenarios.
The decrease in net cash provided by operating activities was primarily due to the timing of our mobile business operations mostly due to lower collections of premiums and fees receivable and an increase in payments to vendors for the acquisition of mobile devices used to meet insurance claims or generate profits through sales to third parties.
The change in net operating cash flows was largely attributable to our mobile business operations, primarily from higher collections of premiums and fees due to timing, and a decrease in payments to vendors for acquisition of mobile devices used to meet insurance claims or generate profits through sales to third parties.
The table below shows our recent net cash flows for the periods indicated: For the Years Ended December 31, 2022 2021 2020 Net cash provided by (used in): Operating activities - continuing operations $ 596.9 $ 630.5 $ 1,114.3 Operating activities - discontinued operations — 151.2 227.7 Operating activities 596.9 781.7 1,342.0 Investing activities - continuing operations (262.1) 302.8 (519.4) Investing activities - discontinued operations — (145.2) (215.8) Investing activities (262.1) 157.6 (735.2) Financing activities - continuing operations (818.4) (1,089.8) (264.8) Financing activities - discontinued operations — — — Financing activities (818.4) (1,089.8) (264.8) Effect of exchange rate changes on cash and cash equivalents - continuing operations (34.5) (23.5) 19.4 Effect of exchange rate changes on cash and cash equivalents - discontinued operations — 0.2 0.1 Effect of exchange rate changes on cash and cash equivalents (34.5) (23.3) 19.5 Net change in cash $ (518.1) $ (173.8) $ 361.5 Cash Flows for the Years Ended December 31, 2022, 2021 and 2020 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, 2023 2022 Net cash provided by (used in): Operating activities $ 1,138.1 $ 596.9 Investing activities (637.7) (262.1) Financing activities (403.9) (818.4) Effect of exchange rate changes on cash and cash equivalents (5.8) (34.5) Net change in cash $ 90.7 $ (518.1) Cash Flows for the Years Ended December 31, 2023 and 2022 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 following table provides details of the reinsurance recoverables balance as of December 31, 2022 and 2021: 2022 2021 Ceded future policyholder benefits and expense $ 360.6 $ 338.4 Ceded unearned premium 5,158.1 4,950.0 Ceded claims and benefits payable 1,312.7 824.0 Ceded paid losses 174.5 68.8 Total $ 7,005.9 $ 6,181.2 For additional information regarding our reserves and reinsurance recoverables, see Notes 2, 5, 17 and 18 to the Consolidated Financial Statements included elsewhere in this Report.
The following table provides details of the reinsurance recoverables balance as of December 31, 2023 and 2022: 2023 2022 Ceded future policyholder benefits and expense $ 339.9 $ 354.3 Ceded unearned premium 5,265.2 5,162.2 Ceded claims and benefits payable 971.4 1,313.7 Ceded paid losses 72.7 169.2 Total $ 6,649.2 $ 6,999.4 For additional information regarding our reserves and reinsurance recoverables, see Notes 2, 5, 17 and 18 to the Consolidated Financial Statements included elsewhere in this Report.
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 conduct periodic asset liability studies to measure the duration of our insurance liabilities, to develop optimal asset portfolio maturity structures for our significant lines of business and ultimately to assess that cash flows are sufficient to meet the timing of cash needs. These studies are conducted in accordance with formal company-wide Asset Liability Management guidelines.
Corporate and Other 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 and activities of the holding company.
For additional information, refer to Note 4 to the Consolidated Financial Statements included elsewhere in this Report. 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.
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. We generally invest our subsidiaries’ funds in order to generate investment income.
Net unrealized gains/losses on our fixed maturity securities portfolio decreased $948.5 million during Twelve Months 2022, from a $311.4 million unrealized gain at December 31, 2021 to a $637.1 million unrealized loss at December 31, 2022, primarily due to an increase in Treasury yields.
Net unrealized losses on our fixed maturity securities portfolio decreased $256.8 million during Twelve Months 2023, from a $637.1 million unrealized loss at December 31, 2022 to a $380.3 million unrealized loss at December 31, 2023, primarily due to a decrease in Treasury yields.
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, 2022 December 31, 2021 Aaa / Aa / A $ 3,615.2 57.5 % $ 4,066.5 56.4 % Baa 2,295.4 36.5 % 2,719.0 37.7 % Ba 305.2 4.9 % 333.7 4.6 % B and lower 67.9 1.1 % 96.1 1.3 % Total $ 6,283.7 100.0 % $ 7,215.3 100.0 % The following table shows the major categories of net investment income for the periods indicated: Years Ended December 31, 2022 2021 2020 Fixed maturity securities $ 270.0 $ 232.8 $ 228.4 Equity securities 15.0 14.9 14.5 Commercial mortgage loans on real estate 14.9 8.9 8.2 Short-term investments 4.7 2.1 5.7 Other investments 48.6 61.0 16.6 Cash and cash equivalents 25.7 8.5 13.3 Revenue from consolidated investment entities (1) — — 56.3 Total investment income 378.9 328.2 343.0 Investment expenses (14.8) (13.8) (20.5) Expenses from consolidated investment entities (1) — — (36.9) Net investment income $ 364.1 $ 314.4 $ 285.6 (1) The following table shows the revenues net of expenses from consolidated investment entities for the periods indicated.
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, 2023 December 31, 2022 Aaa / Aa / A $ 3,958.7 57.3 % $ 3,615.2 57.5 % Baa 2,564.8 37.1 % 2,295.4 36.5 % Ba 318.6 4.6 % 305.2 4.9 % B and lower 70.0 1.0 % 67.9 1.1 % Total $ 6,912.1 100.0 % $ 6,283.7 100.0 % The following table shows the major categories of net investment income for the periods indicated: Years Ended December 31, 2023 2022 Fixed maturity securities $ 335.3 $ 270.0 Equity securities 15.2 15.0 Commercial mortgage loans on real estate 17.5 14.9 Short-term investments 12.9 4.7 Other investments 39.1 48.6 Cash and cash equivalents 85.7 25.7 Total investment income 505.7 378.9 Investment expenses (16.6) (14.8) Net investment income $ 489.1 $ 364.1 Net investment income increased $125.0 million, or 34%, to $489.1 million for Twelve Months 2023 from $364.1 million for Twelve Months 2022.
Corporate and Other Adjusted EBITDA was $(99.2) million for Twelve Months 2022 compared to $(93.3) million for Twelve Months 2021, primarily driven by lower investment income and higher employee-related and third-party expenses. 44 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 realize greater operational efficiencies and manage our expenses.
The following table illustrates the amount of goodwill carried by operating segment as of the dates indicated: December 31, 2022 2021 Global Lifestyle (1) $ 2,193.9 $ 2,192.1 Global Housing (2) 409.1 379.5 Total $ 2,603.0 $ 2,571.6 (1) As of December 31, 2022, $689.1 million, $1,432.9 million and $71.9 million of goodwill was assigned to the Connected Living, Global Automotive and Global Financial Services reporting unit, respectively.
The following table illustrates the amount of goodwill carried by operating segment as of the dates indicated: December 31, 2023 2022 Global Lifestyle (1) $ 2,292.1 $ 2,193.9 Global Housing 316.7 409.1 Total $ 2,608.8 $ 2,603.0 (1) As of December 31, 2023, $785.2 million and $1,506.9 million of goodwill was assigned to the Connected Living and Global Automotive reporting units, respectively.
The table below shows our cash outflows for taxes, interest and dividends for the periods indicated: For the Years Ended December 31, 2022 2021 2020 Income taxes paid $ 127.7 $ 221.1 $ 98.5 Interest paid on debt 108.4 109.8 103.6 Common stock dividends 150.2 157.6 154.6 Preferred stock dividends — 4.7 18.7 Total $ 386.3 $ 493.2 $ 375.4 63 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, 2022: As of December 31, 2022 Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Contractual obligations : Insurance liabilities (1) $ 2,116.8 $ 1,506.4 $ 462.1 $ 81.1 $ 67.2 Debt and related interest 3,830.9 328.8 193.3 193.3 3,115.5 Operating leases 42.0 15.9 19.2 6.1 0.8 Pension obligations and postretirement benefits (2) 495.5 56.1 106.8 101.3 231.3 Commitments: Investment purchases outstanding: Commercial mortgage loans on real estate 7.9 7.9 Capital contributions to non-consolidated VIEs 143.6 143.6 Liability for unrecognized tax benefits 20.4 16.9 3.5 Total obligations and commitments $ 6,657.1 $ 2,058.7 $ 798.3 $ 381.8 $ 3,418.3 (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 change in net financing cash flows was primarily due to lower share repurchases during Twelve Months 2023. 59 The table below shows our cash outflows for taxes, interest and dividends for the periods indicated: For the Years Ended December 31, 2023 2022 2021 Income taxes paid $ 235.4 $ 127.7 $ 221.1 Interest paid on debt 107.4 108.6 109.8 Common stock dividends 152.3 150.2 157.6 Preferred stock dividends — — 4.7 Total $ 495.1 $ 386.5 $ 493.2 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, 2023: As of December 31, 2023 Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Contractual obligations : Insurance liabilities (1) $ 1,878.8 $ 1,295.1 $ 452.7 $ 70.0 $ 61.0 Debt and related interest 3,725.7 107.3 384.2 485.9 2,748.3 Operating leases 37.8 15.8 16.0 5.4 0.6 Pension obligations and postretirement benefits (2) 486.2 57.4 103.1 99.1 226.6 Commitments: Investment purchases outstanding: Commercial mortgage loans on real estate 1.4 1.4 — — — Capital contributions to non-consolidated VIEs 121.4 121.4 — — — Liability for unrecognized tax benefits 19.2 — 15.6 — 3.6 Total obligations and commitments $ 6,270.5 $ 1,598.4 $ 971.6 $ 660.4 $ 3,040.1 (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.
While we have not been released from our contractual obligation to the policyholders, changes in and deviations from economic, mortality, morbidity, and withdrawal assumptions used in the calculation of these reserves will not directly affect our results of operations unless there is a default by the assuming reinsurer.
While we have not been released from our contractual obligation to the policyholders, changes in and deviations from economic, mortality, morbidity, and withdrawal assumptions used in the calculation of these reserves will not directly affect our results of operations unless there is a default by the assuming reinsurer. 49 Valuation of Investments In determining the estimated fair value of our investments, fair values are primarily based on unadjusted quoted prices for identical investments in active markets that are readily and regularly obtainable.
Net earned premiums increased $117.2 million, or 2%, primarily driven by continued organic growth from strong prior period U.S. sales in our Global Automotive business across all distribution channels and domestic mobile subscriber growth within our cable operator distribution channel.
Net earned premiums increased $410.3 million, or 6%, primarily driven by continued domestic organic growth from prior period sales in our Global Automotive business across all distribution channels.
For more information on our investments, see Notes 8 and 10 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.
Total revenues decreased $4.8 million, or 15%, to $27.4 million for Twelve Months 2022 from $32.2 million for Twelve Months 2021 primarily driven by a decrease in net investment income of $5.0 million, or 16%, mostly due to a reduction in income from limited partnerships, partially offset by increased income from higher invested assets balances, primarily reflecting the remaining proceeds from the sale of Global Preneed.
Total revenues decreased $5.8 million, or 21%, to $21.6 million for Twelve Months 2023 from $27.4 million for Twelve Months 2022, primarily driven by a decrease in net investment income of $5.5 million, or 20%, mostly due to lower invested assets from the use of the Global Preneed sale proceeds in Twelve Months 2022 for share repurchases, partially offset by higher cash yields.
Net cash provided by operating activities from continuing operations was $596.9 million and $630.5 million for Twelve Months 2022 and Twelve Months 2021, respectively.
Net cash provided by operating activities was $1.14 billion and $596.9 million for Twelve Months 2023 and Twelve Months 2022, respectively.
Management believes that we will have sufficient liquidity to satisfy our needs over the next twelve months, including the ability to pay interest on our debt and dividends on our common stock. Regulatory Requirements Assurant, Inc. is a holding company and, as such, has limited direct operations of its own.
Management believes that we will have sufficient liquidity to satisfy our needs over the next twelve months, including the ability to pay interest on our debt and dividends on our common stock.
On January 19, 2023, the Board declared a quarterly dividend of $0.70 per common share payable on March 20, 2023 to stockholders of record as of February 27, 2023. We paid dividends of $0.70 per common share on December 19, 2022 to stockholders of record as of November 28, 2022.
We paid dividends of $0.72 per common share on December 18, 2023 to stockholders of record as of November 27, 2023. This represented a 3% increase to the quarterly dividend of $0.70 per common share paid on September 18, June 20, and March 20, 2023.
During Twelve Months 2022, we repurchased 3,347,558 shares of our outstanding common stock at a cost of $567.6 million, exclusive of commissions. In May 2021, the Board authorized a share repurchase program for up to $900.0 million of our outstanding common stock. As of December 31, 2022, $274.5 million aggregate cost at purchase remained unused under the repurchase authorization.
During Twelve Months 2023, we repurchased 1,319,204 shares of our outstanding common stock at a cost of $200.0 million, exclusive of commissions. In May 2021, the Board authorized a share repurchase program for up to $900.0 million of our outstanding common stock.
The effect of higher and lower levels of loss frequency and severity on our ultimate costs for claims occurring in 2022 would be as follows: Change in both loss frequency and severity for all Global Lifestyle and Global Housing Ultimate cost of claims occurring in 2022 Change in cost of claims occurring in 2022 3% higher $ 1,914.0 $ 110.2 2% higher $ 1,877.0 $ 73.2 1% higher $ 1,840.0 $ 36.2 Base scenario (1) $ 1,803.8 $ — 1% lower $ 1,768.0 $ (35.8) 2% lower $ 1,731.0 $ (72.8) 3% lower $ 1,694.0 $ (109.8) (1) Represents the sum of the case reserves and incurred but not reported reserves as of December 31, 2022 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 2023 would be as follows: Change in both loss frequency and severity for all Global Lifestyle and Global Housing Ultimate cost of claims occurring in 2023 Change in cost of claims occurring in 2023 3% higher $ 1,692.2 $ 97.1 2% higher $ 1,659.5 $ 64.4 1% higher $ 1,627.2 $ 32.1 Base scenario (1) $ 1,595.1 $ — 1% lower $ 1,563.4 $ (31.7) 2% lower $ 1,531.9 $ (63.2) 3% lower $ 1,500.8 $ (94.3) (1) Represents the sum of the case reserves and incurred but not reported reserves as of December 31, 2023 for Global Lifestyle and Global Housing.
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, 2022 and 2021: December 31, 2022 December 31, 2021 Principal Amount Carrying Value Principal Amount Carrying Value 4.20% Senior Notes due September 2023 225.0 224.7 300.0 299.0 4.90% Senior Notes due March 2028 300.0 297.8 300.0 297.5 3.70% Senior Notes due February 2030 350.0 347.6 350.0 347.3 2.65% Senior Notes due January 2032 350.0 346.7 350.0 346.4 6.75% Senior Notes due February 2034 275.0 272.5 275.0 272.4 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 400.0 396.5 400.0 395.9 5.25% Subordinated Notes due January 2061 250.0 244.1 250.0 244.0 Total Debt $ 2,129.9 $ 2,202.5 In June 2022, we redeemed $75.0 million of the $300.0 million then outstanding aggregate principal amount of our 2023 Senior Notes at a make-whole premium plus accrued and unpaid interest to the redemption date.
In such instances, we have several options to raise needed funds, including selling assets from the subsidiaries’ investment portfolios, using holding company cash (if available), issuing commercial paper, or drawing funds from the Credit Facility. 57 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, 2023 and 2022: December 31, 2023 December 31, 2022 Principal Amount Carrying Value Principal Amount Carrying Value 4.20% Senior Notes due September 2023 $ — $ — $ 225.0 $ 224.7 6.10% Senior Notes due February 2026 175.0 173.7 — — 4.90% Senior Notes due March 2028 300.0 298.2 300.0 297.8 3.70% Senior Notes due February 2030 350.0 347.9 350.0 347.6 2.65% Senior Notes due January 2032 350.0 347.0 350.0 346.7 6.75% Senior Notes due February 2034 275.0 272.7 275.0 272.5 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 400.0 397.0 400.0 396.5 5.25% Subordinated Notes due January 2061 250.0 244.1 250.0 244.1 Total Debt $ 2,080.6 $ 2,129.9 2026 Senior Notes: In February 2023, we issued senior notes with an aggregate principal amount of $175.0 million, which bear interest at a rate of 6.10% per year, mature in February 2026 and were issued at a 0.035% discount to the public (the “2026 Senior Notes”).
We define Adjusted EBITDA as net income from continuing operations, excluding net realized gains (losses) on investments and fair value changes to equity securities, COVID-19 direct and incremental expenses, loss on extinguishment of debt, non-core operations (defined below), net income (loss) attributable to non-controlling interests, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities), as well as other highly variable or unusual items.
We define Adjusted EBITDA, our segment measure of profitability, as net income from continuing operations, 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), as well as certain legacy long-duration insurance policies and our operations in mainland China), 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.
As of December 31, 2021, $698.7 million, $1,420.5 million, and $72.9 million of goodwill was assigned to the Connected Living, Global Automotive and Global Financial Services reporting unit, respectively.
As of December 31, 2022, $761.0 million and $1,432.9 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.
Total benefits, losses and expenses increased $9.8 million, or 1%, to $1.66 billion for Twelve Months 2021 from $1.65 billion for Twelve Months 2020.
Total benefits, losses and expenses increased $610.5 million, or 8%, to $8.12 billion for Twelve Months 2023 from $7.51 billion for Twelve Months 2022.
The increase was partially offset by a decrease in fees and other income of $8.4 million, or 6%, primarily due to a decline in fees from our Multifamily Housing and Lender-placed Insurance businesses. Total benefits, losses and expenses increased $126.1 million, or 8%, to $1.79 billion for Twelve Months 2022 from $1.66 billion for Twelve Months 2021.
The increase in total revenues was partially offset by a decrease in fees and other income of $4.6 million, or 3%, mainly driven by a decline in Renters and Other from lower installment fees. Total benefits, losses and expenses decreased $36.0 million, or 2%, to $1.68 billion for Twelve Months 2023 from $1.71 billion for Twelve Months 2022.
These decreases were partially offset by an increase in cash from the receipt of a tax refund that was in excess of tax payments for Twelve Months 2022. Net cash provided by operating activities from continuing operations was $630.5 million and $1.11 billion for Twelve Months 2021 and Twelve Months 2020, respectively.
The increase was partially offset by higher net paid claims for Twelve Months 2023 and a receipt of a tax refund that was in excess of tax payments during Twelve Months 2022. Investing Activities Net cash used in investing activities was $637.7 million and $262.1 million for Twelve Months 2023 and Twelve Months 2022, respectively.
Results of Operations Assurant Consolidated The table below presents information regarding our consolidated results of operations: For the Years Ended December 31, 2022 2021 2020 Revenues: Net earned premiums $ 8,765.3 $ 8,572.1 $ 8,277.9 Fees and other income 1,243.3 1,172.9 1,042.3 Net investment income 364.1 314.4 285.6 Net realized (losses) gains on investments and fair value changes to equity securities (179.7) 128.2 (8.2) Total revenues 10,193.0 10,187.6 9,597.6 Benefits, losses and expenses: Policyholder benefits 2,359.8 2,201.9 2,275.2 Underwriting, selling, general and administrative expenses 7,366.3 7,081.9 6,639.8 Goodwill impairment 7.8 — — Interest expense 108.3 111.8 104.5 Loss on extinguishment of debt 0.9 20.7 — Total benefits, losses and expenses 9,843.1 9,416.3 9,019.5 Income before provision for income taxes 349.9 771.3 578.1 Provision for income taxes 73.3 168.4 58.7 Net income from continuing operations 276.6 602.9 519.4 Net income (loss) from discontinued operations — 758.9 (77.7) Net income 276.6 1,361.8 441.7 Less: Net income attributable to non-controlling interest — — (0.9) Net income attributable to stockholders 276.6 1,361.8 440.8 Less: Preferred stock dividends — (4.7) (18.7) Net income attributable to common stockholders $ 276.6 $ 1,357.1 $ 422.1 Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021 Net Income from Continuing Operations Consolidated net income from continuing operations decreased $326.3 million, or 54%, to $276.6 million for Twelve Months 2022 from $602.9 million for Twelve Months 2021, primarily due to a net decrease in unrealized gains from changes in fair value of equity securities mostly driven by the four equity positions that went public in 2021 through SPAC mergers.
Results of Operations Assurant Consolidated The table below presents information regarding our consolidated results of operations: For the Years Ended December 31, 2023 2022 Revenues: Net earned premiums $ 9,388.0 $ 8,765.3 Fees and other income 1,323.2 1,243.3 Net investment income 489.1 364.1 Net realized losses on investments and fair value changes to equity securities (68.7) (179.7) Total revenues 11,131.6 10,193.0 Benefits, losses and expenses: Policyholder benefits 2,521.8 2,359.8 Underwriting, selling, general and administrative expenses 7,695.1 7,366.3 Goodwill impairment — 7.8 Interest expense 108.0 108.3 Loss on extinguishment of debt (0.1) 0.9 Total benefits, losses and expenses 10,324.8 9,843.1 Income before provision for income taxes 806.8 349.9 Provision for income taxes 164.3 73.3 Net income $ 642.5 $ 276.6 Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022 Net Income Consolidated net income increased $365.9 million, or 132%, to $642.5 million for Twelve Months 2023 from $276.6 million for Twelve Months 2022, primarily driven by higher lender-placed net earned premiums and lower non-catastrophe loss experience in our Homeowners business within Global Housing, a $104.3 million decrease in after-tax net unrealized losses from changes in the fair value of equity securities and $47.6 million of lower after-tax reportable catastrophes.
Underwriting, selling, general and administrative expenses increased $5.3 million, or 1%, primarily due to an increase in expenses consistent with net earned premium growth and continued investments in Multifamily Housing, partially offset by a decrease in commission expense in our Specialty and Other business. 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, 2022 2021 2020 Revenues: Net earned premiums $ — $ — $ — Fees and other income 0.5 0.3 0.5 Net investment income 26.9 31.9 17.6 Total revenues 27.4 32.2 18.1 Benefits, losses and expenses Policyholder benefits 0.5 — — General and administrative expenses 126.1 125.5 142.5 Total benefits, losses and expenses 126.6 125.5 142.5 Corporate and Other Adjusted EBITDA $ (99.2) $ (93.3) $ (124.4) Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021 Adjusted EBITDA was $(99.2) million for Twelve Months 2022 compared to $(93.3) million for Twelve Months 2021.
Underwriting, selling, general and administrative expenses decreased $13.9 million, or 2%, primarily due to exits from certain international markets, higher reimbursements related to the National Flood Insurance Program for processing flood claims for Hurricane Ian and a discretionary benefit from the Federal Emergency Management Agency. 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, 2023 2022 Revenues: Net earned premiums $ — $ — Fees and other income 0.2 0.5 Net investment income 21.4 26.9 Total revenues 21.6 27.4 Benefits, losses and expenses Policyholder benefits 0.1 0.5 General and administrative expenses 130.5 126.1 Total benefits, losses and expenses 130.6 126.6 Corporate and Other Adjusted EBITDA $ (109.0) $ (99.2) Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022 Adjusted EBITDA was $(109.0) million for Twelve Months 2023 compared to $(99.2) million for Twelve Months 2022.
Twelve Months 2021 included approximately $12.0 million of dividends from subsidiaries, net of infusions, in the disposed Global Preneed business. We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to fund investments and acquisitions, and to repurchase our common stock.
We use these cash inflows primarily to pay holding company operating expenses, to make interest payments on indebtedness, to make dividend payments to our common stockholders, to fund investments and acquisitions, and to repurchase our common stock. From time to time, we may also seek to purchase outstanding debt in open market repurchases or privately negotiated transactions.
The increase in the loss was primarily due to lower investment income and higher employee-related and technology expenses.
The increase in the loss was primarily due to lower net investment income, mostly due to lower invested assets from the use of the Global Preneed sale proceeds in Twelve Months 2022 for share repurchases, and higher employee-related expenses.
Pre-tax reportable catastrophes (defined as individual catastrophic events that generate losses in excess of $5.0 million pre-tax, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums) increased $17.6 million.
Executive Summary Summary of Financial Results Consolidated net income increased $365.9 million, or 132%, to $642.5 million for Twelve Months 2023 from $276.6 million for Twelve Months 2022, primarily due to higher Global Housing segment earnings, including lower reportable catastrophes (defined as individual catastrophic events that generate losses in excess of $5.0 million pre-tax, net of reinsurance and client profit sharing adjustments, and including reinstatement and other premiums), and lower net unrealized losses from changes in the fair value of equity securities.
Underwriting, selling, general and administrative expenses increased $202.9 million, or 3%, mainly due to higher commission expenses, primarily from growth across our Global Automotive business and domestic mobile subscriber growth within our cable operator distribution channel, as well as higher cost of sales in Connected Living due to an increase in global mobile devices serviced, which included expenses from the in-store mobile service and repair program, and higher operating costs to support growth.
Underwriting, selling, general and administrative expenses increased $359.2 million, or 6%, mainly due to higher commission expenses from growth across Global Lifestyle, primarily in Global Automotive, higher cost of sales in our global mobile business and higher information technology and employee-related expenses to support growth, partially offset by a mobile program contract change related to our in-store mobile service and repair business.
Global Housing results were also impacted by increased catastrophe reinsurance costs. Global Housing net earned premiums, fees and other income increased $69.0 million, or 4%, to $2.01 billion for Twelve Months 2022 from $1.94 billion for Twelve Months 2021, largely from Lender-placed Insurance.
Global Housing net earned premiums, fees and other income increased $258.3 million, or 14%, to $2.14 billion for Twelve Months 2023 from $1.88 billion for Twelve Months 2022, largely driven by Homeowners top-line growth, which was driven by higher average premiums and growth in policies-in-force within lender-placed insurance.
Best • In August 2022, upgraded the insurance financial strength ratings on our insurance operating subsidiaries, American Bankers Life Assurance Company of Florida (“ABLAC”) and Caribbean American Life Assurance Company, to A from A- with a stable outlook.
Best: • Upgraded the insurance financial strength ratings on our insurance operating subsidiaries, American Bankers Insurance Company of Florida, American Security Insurance Company, Caribbean American Property Insurance Company, Voyager Indemnity Insurance Company, Virginia Surety Company, Inc, and Reliable Lloyds Insurance Company, to A+ from A with a stable outlook. • Upgraded our short-term issuer credit ratings on commercial paper to AMB-1+ from AMB-1 with a stable outlook. • Upgraded our long-term issuer credit ratings on senior unsecured debt to a- from bbb+ with a stable outlook. • Upgraded our long-term issuer credit ratings on subordinated debt to bbb+ from bbb with a stable outlook.
The decrease in total benefits, losses and expenses was also due to a $111.7 million, or 39%, decrease in policyholder benefits and a $57.4 million, or 40%, decrease in underwriting, selling, general and administrative expenses, primarily because Twelve Months 2021 included only seven months of results. 57 Investments We had total investments of $7.52 billion and $8.67 billion as of December 31, 2022 and 2021, respectively.
Total benefits, losses and expenses increased $4.0 million, or 3%, to $130.6 million for Twelve Months 2023 from $126.6 million for Twelve Months 2022, primarily due to an increase in general and administrative expenses of $4.4 million, or 3%, primarily due to higher employee-related expenses, partially offset by the reduction of expenses from a subsidiary that was sold in second quarter 2022. 54 Investments We had total investments of $8.22 billion and $7.52 billion as of December 31, 2023 and 2022, respectively.
The increase was primarily driven by higher yields on fixed maturity securities and cash and cash equivalents, and higher income from commercial mortgage loans on real estate due to higher invested assets, partially offset by lower income from other investments mostly due to a reduction in income from limited partnerships.
The increase was primarily driven by higher yields and assets in fixed maturity securities, short term investments and cash and cash equivalents.
This program is currently backed up by the Credit Facility, of which $499.8 million out of the $500.0 million was available as of December 31, 2022, due to $0.2 million of letters of credit outstanding. 61 We did not use the commercial paper program during Twelve Months 2022 and there were no amounts relating to the commercial paper program outstanding as of December 31, 2022.
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, 2023.
For additional information, see Note 19 to the Consolidated Financial Statements included elsewhere in this Report. Letters of Credit Letters of credit are issued in the ordinary course of business. 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.
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 $2.9 million and $2.7 million of letters of credit outstanding as of December 31, 2023 and 2022, respectively.
As of December 31, 2022, we owned $17.4 million of securities guaranteed by financial guarantee insurance companies. Included in this amount was $14.7 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 $16.0 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 8 and 10 to the Consolidated Financial Statements included elsewhere in this Report.
Global Lifestyle net earned premiums, fees and other income increased $196.0 million, or 3%, to $7.94 billion for the Twelve Months 2022 from $7.74 billion for Twelve Months 2021, driven by strong prior period sales in Global Automotive. Connected Living decreased mainly from runoff mobile programs, partially offset by mobile subscriber growth in North America.
Global Lifestyle net earned premiums, fees and other income increased $499.5 million, or 6%, to $8.56 billion for the Twelve Months 2023 from $8.06 billion for Twelve Months 2022, primarily due to prior period sales within Global Automotive.
The decrease in cash provided by investing activities was primarily driven by a decrease in cash from sales of subsidiaries, partially offset by an increase in cash from sales and maturities, net of purchases, and a change in our short term investments, due to ongoing management of our investment portfolio.
The change in net investing cash flows was primarily driven by the investment of net cash provided by operating activities and reinvestment of proceeds from the sales of maturities of investments in higher yielding fixed maturity securities during the period.
The change in Twelve Months 2022 was also driven by $63.7 million of net realized losses on sales of fixed maturity securities, partially offset by $18.1 million of net realized gains on sales of equity securities.
The change in Twelve Months 2023 was primarily driven by changes in the fair value of equity securities and lower sales of fixed maturity securities, partially offset by a decrease in realized gains on sales of equity securities. As of December 31, 2023, we owned $17.8 million of securities guaranteed by financial guarantee insurance companies.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

9 edited+2 added−1 removed14 unchanged
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, 2022 and 2021 and the sensitivity to a hypothetical strengthening of the U.S. dollar. 65 December 31, 2022 December 31, 2021 2022 vs. 2021 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) $ 306.9 1.2153 $ 351.1 1.3235 (8.2)% Canadian dollar (CAD) 209.8 0.7393 229.4 0.7874 (6.1)% Euro (EUR) 179.4 1.0608 192.1 1.1235 (5.6)% Brazilian real (BRL) 68.8 0.1888 67.1 0.1755 7.6% Australian dollar (AUD) 59.6 0.6701 61.6 0.7124 (5.9)% Mexican peso (MXN) 63.5 0.0505 80.9 0.0480 5.2% Japanese yen (JPY) 26.9 0.0073 37.4 0.0088 (17.0)% Argentine peso (ARS) 27.4 0.0056 32.0 0.0097 (42.3)% Other (various currencies) 21.8 4.5 Value of net assets denominated in foreign currencies $ 964.1 $ 1,056.1 Net assets $ 4,228.7 $ 5,464.1 As a percentage of total net assets 22.8 % 19.3 % Pre-tax decrease in fair value of our investments in foreign subsidiaries from a hypothetical 10 percent strengthening of the USD $ (117.3) $ (128.4) Pre-tax increase in fair value of our investments in foreign subsidiaries from a hypothetical 10 percent weakening of the USD $ 117.3 $ 128.4 Credit Risk Credit risk is the possibility that counterparties may not be able to meet payment obligations when they become due.
Biggest changeDecember 31, 2023 December 31, 2022 2023 vs. 2022 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) $ 321.5 1.2649 $ 306.9 1.2153 4.1% Canadian dollar (CAD) 233.9 0.7567 209.8 0.7393 2.4% Euro (EUR) 170.7 1.0924 179.4 1.0608 3.0% Brazilian real (BRL) 87.3 0.2040 68.8 0.1888 8.1% Australian dollar (AUD) 60.5 0.6707 59.6 0.6701 0.1% Mexican peso (MXN) 85.4 0.0583 63.5 0.0505 15.4% Japanese yen (JPY) 28.6 0.0070 26.9 0.0073 (4.1)% Chilean peso (CLP) 17.6 0.0011 16.4 0.0011 —% Argentine peso (ARS) 8.6 0.0012 27.4 0.0056 (78.6)% Other (various currencies) 19.2 5.4 Value of net assets denominated in foreign currencies $ 1,033.3 $ 964.1 Net assets $ 4,809.5 $ 4,228.7 As a percentage of total net assets 21.5 % 22.8 % Pre-tax decrease in fair value of our investments in foreign subsidiaries from a hypothetical 10 percent strengthening of the USD $ (116.1) $ (117.3) Pre-tax increase in fair value of our investments in foreign subsidiaries from a hypothetical 10 percent weakening of the USD $ 116.1 $ 117.3 Credit Risk Credit risk is the possibility that counterparties may not be able to meet payment obligations when they become due.
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 ” and “– Fluctuations in the exchange rate of the U.S.
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, 61 catastrophe risks, reserving and capital management ” and “– Fluctuations in the exchange rate of the U.S.
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, 2022, compared to the year ended December 31, 2021.
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, 2023, compared to the year ended December 31, 2022.
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, 2022.
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, 2023.
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) $143.9 million and $178.6 million as of December 31, 2022 and 2021, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates (including impacts of changes in credit spreads), and (ii) $283.2 million and $349.6 million as of December 31, 2022 and 2021, 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) $170.0 million and $143.9 million as of December 31, 2023 and 2022, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates (including impacts of changes in credit spreads), and (ii) $333.2 million and $283.2 million as of December 31, 2023 and 2022, 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) $44.7 million and $61.1 million as of December 31, 2022 and 2021, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates, and (ii) $88.4 million and $122.0 million as of December 31, 2022 and 2021, 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) $54.0 million and $44.7 million as of December 31, 2023 and 2022, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates, and (ii) $106.3 million and $88.4 million as of December 31, 2023 and 2022, respectively, based on a hypothetical and instantaneous 100 basis point parallel increase in interest rates.
Our investment portfolio consists primarily of fixed maturity securities, denominated in both U.S. dollars and foreign currencies, which are sensitive to changes in interest rates, including impacts of changes in credit spreads, foreign currency exchange rates and credit risk from counterparties. The majority of our fixed income portfolio is classified as available for sale.
Market risk is dependent on the volatility and liquidity in the underlying markets in which these assets are traded. Our investment portfolio consists primarily of fixed maturity securities, denominated in both U.S. dollars and foreign currencies, which are sensitive to changes in interest rates, including impacts of changes in credit spreads, foreign currency exchange rates and credit risk from counterparties.
The carrying value of our investment portfolio at December 31, 2022 and 2021 was $7.52 billion and $8.67 billion, respectively, of which 84% and 83% was invested in fixed maturity securities, respectively. 64 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.
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.
We do not currently anticipate significant changes in our primary market risk exposures or in how those exposures are managed in future reporting periods based upon what is known or expected to be in effect in future reporting periods.
We do not currently anticipate significant changes in our primary market risk exposures or in how those exposures are managed in future reporting periods based upon what is known or expected to be in effect in future reporting periods. 60 Market risk is the risk of loss from changes in the fair value of our financial instruments, including due to interest rates (including impacts of changes in credit spreads), foreign currency exchange rates and credit risk from counterparties.
Removed
Market risk is the risk of loss from changes in the fair value of our financial instruments, including due to interest rates (including impacts of changes in credit spreads), foreign currency exchange rates and credit risk from counterparties. Market risk is dependent on the volatility and liquidity in the underlying markets in which these assets are traded.
Added
The majority of our fixed income portfolio is classified as available for sale. The carrying value of our investment portfolio at December 31, 2023 and 2022 was $8.22 billion and $7.52 billion, respectively, of which 84% was invested in fixed maturity securities.
Added
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, 2023 and 2022 and the sensitivity to a hypothetical strengthening of the U.S. dollar.

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