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What changed in ASSURANT, INC.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of ASSURANT, INC.'s 2023 and 2024 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 2024 report.

+403 added−426 removedSource: 10-K (2025-02-20) vs 10-K (2024-02-15)

Top changes in ASSURANT, INC.'s 2024 10-K

403 paragraphs added · 426 removed · 334 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

117 edited+32 added−59 removed112 unchanged
Biggest changeGlobal Lifestyle Years Ended December 31, 2023 2022 2021 Net earned premiums, fees and other income by product: Connected Living (1) $ 4,376.8 $ 4,259.4 $ 4,321.6 Global Automotive 4,184.6 3,802.5 3,504.5 Total $ 8,561.4 $ 8,061.9 $ 7,826.1 Segment Adjusted EBITDA $ 792.3 $ 809.4 $ 737.6 Segment equity (2) $ 4,822.0 $ 4,743.3 $ 4,644.9 (1) For the years ended December 31, 2023, 2022 and 2021, 44.8%, 46.0%, and 47.5%, respectively, of net earned premiums, fees and other income was from mobile device solutions; 44.7%, 44.3%, and 43.5%, respectively, was from extended service contracts and related services for consumer electronics and appliances; and 10.5%, 9.7%, and 9.0%, respectively, was from credit and other insurance products.
Biggest changeFor 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 5 to the Consolidated Financial Statements included elsewhere in this Report. 4 Global Lifestyle Years Ended December 31, 2024 2023 2022 Net earned premiums, fees and other income by product: Connected Living (1) $ 4,807.9 $ 4,376.8 $ 4,259.4 Global Automotive 4,159.4 4,184.6 3,802.5 Total $ 8,967.3 $ 8,561.4 $ 8,061.9 Segment Adjusted EBITDA $ 773.4 $ 792.3 $ 809.4 Segment equity (2) $ 4,830.9 $ 4,822.0 $ 4,743.3 (1) For the years ended December 31, 2024, 2023 and 2022, 50.6%, 44.8%, and 46.0%, respectively, of net earned premiums, fees and other income was from mobile device solutions; 38.8%, 44.7%, and 44.3%, respectively, was from extended service contracts and related services for consumer electronics and appliances; and 10.6%, 10.5%, and 9.7%, respectively, was from financial services and other insurance products.
The Board and its committees receive updates from management on specific risks throughout the year, and each committee chair reports significant risk updates at least quarterly to the full Board so that the Board has the benefit of the committee’s specific areas of risk oversight.
The Board and its committees receive updates from management on specific risks throughout the year, and each committee chair reports significant risk updates at least quarterly to the full Board so that the Board has the benefit of each committee’s specific areas of risk oversight.
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.
Global Risk Management, in conjunction with various risk committees, develops recommendations for risk limits as part of our risk appetite framework. Using metrics as appropriate in establishing these risk limits allows for a cohesive assessment of risk, resources, and strategy, and supports management and the Board in making well-informed business decisions.
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.
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.
Catastrophe events such as hurricanes typically occur in the second half of the year, and may increase in frequency and severity due to climate change. We also experience some seasonal fluctuation in non-catastrophe weather-related claims that tend to occur in the first half of the year. Competition Our businesses focus on supporting, protecting and connecting major consumer purchases.
Catastrophe events such as hurricanes typically occur in the second half of the year, and may increase in frequency and severity due to climate change. We also experience some seasonal fluctuation in non-catastrophe weather-related claims that tend to occur in the first half of the year. 9 Competition Our businesses focus on supporting, protecting and connecting major consumer purchases.
Ratings of A (strong) are within the third highest of S&P’s nine ratings categories. S&P has a stable outlook on all of our domestic operating insurance subsidiaries’ insurer financial strength ratings. Regulation We are subject to extensive federal, state and international regulation and supervision in the jurisdictions in which we do business. Regulations vary from jurisdiction to jurisdiction.
Ratings of A (strong) are within the third highest of S&P’s nine ratings categories. S&P has a stable outlook on all of our domestic operating insurance subsidiaries’ insurer financial strength ratings. 13 Regulation We are subject to extensive federal, state and international regulation and supervision in the jurisdictions in which we do business. Regulations vary from jurisdiction to jurisdiction.
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.
Typically, these agreements have terms of three to five years and allow us to integrate our systems with those of our clients. Renters products are distributed primarily through property management companies and affinity marketing partners. We offer our voluntary insurance programs primarily through manufactured housing lenders and retailers, 8 along with independent specialty agents.
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 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. Other products.
Expanded capabilities like repair and logistics, technical support for customers and enhanced customer experience through digital solutions allow us to create product and service offerings that customers find compelling. We believe there are additional growth opportunities in expanding protection to other devices and technologies within the home.
Expanded capabilities like repair and logistics, technical support for customers and enhanced customer experience through digital solutions and AI allow us to create product and service offerings that customers find compelling. We believe there are additional growth opportunities in expanding protection to other devices and technologies within the home.
We believe there is opportunity to increase our market share and attachment rates with new and existing clients through our investments in digital platforms designed to deliver superior, digital-first customer experience and our expanded offerings to provide end-to-end solutions. Risk Management We earn premiums on our insurance products and fees for our services.
We believe there is opportunity to increase our market share and attachment rates with new and existing clients through our investments in digital platforms designed to deliver superior customer experience and our expanded offerings to provide end-to-end solutions. Risk Management We earn premiums on our insurance products and fees for our services.
We 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.
We generally deploy capital to support business growth by funding investments and through acquisitions, to pay dividends and to repurchase shares. We target new businesses and capabilities, organically and through acquisitions, that complement or accelerate our strategy. Our approach to mergers, acquisitions and other growth opportunities reflects our strategic and disciplined approach to capital management. 3 Investing in talent.
We have adapted our learning and development programs and delivery modes to meet the varying needs of our business and our predominantly virtual workforce. We provide a broad array of training on topics such as managing virtual and hybrid teams, mental health awareness and building resilience, managerial skills, and diversity and inclusion.
We have adapted our learning and development programs and delivery modes to meet the varying needs of our business and our predominantly virtual workforce. We provide a broad array of training on topics such as managing virtual and hybrid teams, mental health awareness and building resilience, managerial skills and inclusion.
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.
For VSCs, we pay the cost of repairing a customer’s vehicle in the event of mechanical breakdown. For ancillary products, including relating to commercial and other leased or financed equipment, coverage varies, but, generally, we pay the cost of repairing, servicing or replacing parts or provide other financial compensation in the event of mechanical breakdown, accidental damage or theft.
One of our subsidiaries is a broker-dealer that is registered with the SEC and with the state securities commissions in all 50 states, and is a member of the Financial Industry Regulatory Authority. Additionally, we and our subsidiaries are subject to the corporate governance laws of our respective jurisdictions of incorporation or formation.
One of our subsidiaries is a broker-dealer that is registered with the SEC and with the state securities commissions in all 50 states, and it is a member of the Financial Industry Regulatory Authority. Additionally, we and our subsidiaries are subject to the corporate governance laws of our respective jurisdictions of incorporation or formation.
In addition, we have a trademark portfolio that we consider important in the marketing of our products and services, including the “Assurant” brand name. Over time, we have accumulated a sizeable portfolio of issued and registered intellectual property rights around the world, and seek to protect it against infringement.
In addition, we have a trademark portfolio that we consider important in the marketing of our products and services, including the “Assurant” brand name. 12 Over time, we have accumulated a sizeable portfolio of issued and registered intellectual property rights around the world, and we seek to protect it against infringement.
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).
We use our website ( www.assurant.com ) and social media accounts, including X (formerly Twitter) ( @Assurant ), LinkedIn ( @Assurant ) and Facebook ( @Assurant ), as a means of disclosing information about us and our services and for complying with our disclosure obligations under the SEC’s Regulation FD (Fair Disclosure).
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.
Global Lifestyle is dependent on a few clients, in particular mobile service providers, and a reduction in business with or the loss of one or more such clients could have a material adverse effect on our results of operations and cash flows.
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.
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. 14 Risk-Based Capital Requirements.
Patents are of varying duration depending on the filing date, and will typically expire at the end of their natural term. The duration of trademark registrations may be renewed indefinitely, subject to country-specific use and registration requirements.
Patents are of varying duration depending on the filing date, and they will typically expire at the end of their natural term. The trademark registrations may be renewed indefinitely, subject to country-specific use and registration requirements.
The following is a summary of significant regulations that apply to our businesses, but is not intended to be a comprehensive review of every regulation to which we are subject.
The following is a summary of significant regulations that apply to our businesses, but it is not intended to be a comprehensive review of every regulation to which we are subject.
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.
We assess the performance and potential of current incumbents, identify and assess potential successors, and create targeted development plans to strengthen the preparedness of our talent pipeline.
Our Competitive Strengths Our financial strength and capabilities across our businesses create competitive advantages that we believe allow us to support our clients, deliver a superior experience for their customers and drive sustainable profitable growth over the long term. Our financial strength. We believe we have a strong balance sheet and operating cash flows.
Our Competitive Strengths Our financial strength and capabilities across our businesses create competitive advantages that we believe allow us to support our clients, deliver a superior experience for their customers and drive sustainable profitable growth over the long term. Our financial strength and business model. We believe we have a strong balance sheet and operating cash flows.
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.
For information on the risks associated with ratings downgrades, see “Item 1A – Risk Factors – Financial Risks – A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition. ” The following table summarizes the financial strength ratings and outlooks of our domestic operating insurance subsidiaries as of December 31, 2024: A.M.
Assurant also introduced an HR virtual assistant to provide easy access to routine questions employees raise with the goal of improving their experience as an employee. We will continue to assess additional opportunities across Total Rewards and Wellbeing to help attract and retain top talent.
Assurant also has an HR virtual assistant to provide easy access to routine questions employees raise with the goal of improving their experience as an employee. We will continue to assess additional opportunities across Total Rewards and Wellbeing to help attract and retain top talent.
While the FIO does not have general supervisory or regulatory authority over the business of insurance, the FIO director performs various functions with respect to insurance, including monitoring the insurance sector and representing the 16 U.S. on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors (“IAIS”).
While the FIO does not have general supervisory or regulatory authority over the business of insurance, the FIO director performs various functions with respect to insurance, including monitoring the insurance sector and representing the 15 U.S. on prudential aspects of international insurance matters, including at the International Association of Insurance Supervisors (“IAIS”).
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.
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 applicants and employees with base salary ranges for their role and grade.
We operate in various jurisdictions, including Canada, the U.K., France, Argentina, Australia, Brazil, Chile, Peru, Colombia, Germany, India, the Netherlands, New Zealand, Puerto Rico, Spain, Italy, Mexico, Japan, South Korea, China and Singapore, and, in several of these jurisdictions, our businesses are supervised by local regulatory authorities.
We operate in various jurisdictions, including Canada, the U.K., France, Argentina, Australia, Brazil, Chile, Peru, Colombia, Germany, India, the Netherlands, New Zealand, Puerto Rico, Spain, Italy, Mexico, Japan, South Korea, Hong Kong and Singapore, and, in several of these jurisdictions, our businesses are supervised by local regulatory authorities.
Visibility across the value chain helps us leverage insights to further improve the customer experience and our offerings. Our ability to introduce value-added services and capabilities across the value chain and provide a superior customer experience allows us to strengthen our partnerships and our competitive position.
Visibility across the value chain helps us further improve the customer experience and our offerings. Our ability to introduce value-added services and capabilities across the value chain and provide a superior customer experience allows us to strengthen our partnerships and our competitive position.
(2) Segment equity does not include components of accumulated other comprehensive income (“AOCI”), which is primarily comprised of net unrealized gains on securities, net of taxes. For additional information on total AOCI, see Note 22 to the Consolidated Financial Statements included elsewhere in this Report.
(2) Segment equity does not include components of accumulated other comprehensive income (“AOCI”), which is primarily comprised of net unrealized gains/ losses on securities, net of taxes. For additional information on total AOCI, see Note 21 to the Consolidated Financial Statements included elsewhere in this Report.
Our Enterprise Risk Management Policy, which outlines our risk management framework and establishes principles for its effectiveness, has been approved by the Enterprise Risk Committee and the Board, and is reviewed annually to align with the Company’s business operations and strategy as well as changes to applicable laws, regulations and industry standards.
Our Enterprise Risk Management Policy, which outlines our risk management framework and establishes principles for its effectiveness, has been approved by the Board. It is reviewed 17 annually to align with the Company’s business operations and strategy, as well as changes to applicable laws, regulations and industry standards.
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.
We monitor pricing adequacy based on a variety of factors and adjust pricing as required, subject to regulatory constraints, including through a built-in quarterly inflation guard feature.
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.
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 within the voluntary homeowners’ insurance market, including in California and Texas.
For additional information on total AOCI, see Note 22 to the Consolidated Financial Statements included elsewhere in this Report. Our Products and Services The key lines of business in Global Housing are Homeowners and Renters and Other, each as described below.
For additional information on total AOCI, see Note 21 to the Consolidated Financial Statements included elsewhere in this Report. 7 Our Products and Services The key lines of business in Global Housing are Homeowners and Renters and Other, each as described below.
We conducted employee focus groups that helped validate that recommended plan changes for 2023 met the needs of our diverse workforce particularly around predictability and affordability of health care costs. Additionally, there were several enhancements to benefits starting in 2024, such as increased employer contributions, expanded plan offerings and more affordable virtual care and mental health access.
We conducted employee focus groups that helped validate that recommended plan changes for 2024 met the needs of our global workforce, particularly around predictability and affordability of health care costs. Additionally, there were several enhancements to benefits starting in 2024, 11 such as increased employer contributions, expanded plan offerings and more affordable virtual care and mental health access.
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.
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 device lifecycle related services), extended service contracts and related services for consumer electronics and appliances, and financial services and other insurance products; and Global Automotive.
We intend to grow our businesses by strengthening our partnerships with major clients and prospects globally, while continuing to invest in talent, capabilities and technology, including digital, to enable us to deliver a superior customer experience, as well as further broadening our offerings and diversifying our distribution channels.
We intend to grow our businesses by strengthening our partnerships with major clients and prospects globally, while continuing to invest in talent, capabilities and technology, including digital and AI, to enable us to deliver a superior customer experience, as well as further broadening our offerings and diversifying our distribution channels. Providing integrated offerings through a superior customer experience .
The second line of defense assists in determining the risk appetite, strategies, policies and structure for managing risk, including business resiliency and operational risk. The third line of defense is comprised of the Internal Audit function and is independently governed by the Audit Committee.
The second line of defense assists in determining the risk appetite, strategies, policies, and structure for managing risk, including strategic and business risk, financial risk, and operational risk. The third line of defense is comprised of the Internal Audit function and is independently governed by the Audit Committee.
In fourth quarter 2023, we made the decision to fully exit our operations in mainland China (other than Hong Kong). Global Lifestyle focuses on establishing strong, long-term relationships with clients that are leaders in their markets, including leading distributors of our products and services.
In fourth quarter 2023, we made the decision to fully exit our operations in mainland China (other than Hong Kong), which were subsequently sold in 2024. Global Lifestyle focuses on establishing strong, long-term relationships with clients that are leaders in their markets, including leading distributors of our products and services.
Our employees play a critical role in contributing to our success and supporting our business strategy. We believe in fostering a diverse, equitable and inclusive culture to drive sustained profitable growth through innovation.
Our employees play a critical role in contributing to our success and supporting our business strategy. We believe in fostering an inclusive culture to drive sustained profitable growth through innovation.
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.
Many of our agreements in Global Lifestyle are exclusive and multi-year with terms generally between three and five years and allow us to integrate our administrative systems with those of our clients.
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.
As of December 31, 2024, 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, 2024, 60% of our global workforce were women.
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.
The Compensation & Talent Committee annually reviews the CEO succession plan and succession plans for senior executives, which includes emergency successors for each role, and conducts a broader talent review with the goal to ensure we have the right leadership in place to execute the Company’s long-term strategic plans.
The homeowner always retains the option to obtain or renew the insurance of his or her choice. Lender-placed manufactured housing insurance. Lender-placed manufactured housing insurance consists principally of fire and dwelling hazard insurance for manufactured housing offered through our lender-placed program. Lender-placed manufactured housing insurance is issued after an insurance tracking and exposure management process similar to that described above.
The homeowner always retains the option to obtain or renew the insurance in the voluntary insurance market. Lender-placed manufactured housing insurance. Lender-placed manufactured housing insurance consists principally of fire and dwelling hazard insurance for manufactured housing offered through our lender-placed program. Lender-placed manufactured housing insurance is issued after an insurance tracking and exposure management process similar to that described above.
Our inventory includes devices and parts on consignment with our nationwide network of nearly 500 Cell Phone Repair locations through which we provide in-store repairs. Inventory levels may vary from period to period due to, among other things, differences between actual and forecasted demand, supply chain constraints, the addition of new devices and parts, and strategic purchases.
Our inventory includes devices and parts on consignment with our nationwide network of over 900 repair and partner locations through which we provide in-store repairs. Inventory levels may vary from period to period due to, among other things, differences between actual and forecasted demand, supply chain constraints, the addition of new devices and parts, and strategic purchases.
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.
Distribution and Clients Global Lifestyle operates globally, with approximately 82.1% of its revenue from North America (the U.S. and Canada), 7.5% from Latin America (Brazil, Argentina, Puerto Rico, Mexico, Chile, Colombia and Peru), 5.9% from Europe (the United Kingdom (the “U.K.”), France, Italy, Spain, Germany and the Netherlands) and 4.5% from Asia Pacific (Japan, Australia, New Zealand, South Korea, India, Singapore and Hong Kong for the year ended December 31, 2024).
If there is a potential lapse in insurance coverage, we begin a process of notification and outreach to both the homeowner and the last known insurance carrier or agent through phone calls and written correspondence, which generally takes up to 90 days to complete.
If there is a potential lapse in insurance coverage, we begin a process of outreach and notification to the homeowner and the last known insurance carrier or agent through phone calls, written correspondence and in some cases direct interfaces with insurance carriers, which generally takes up to 90 days to complete.
Most of our distribution agreements are exclusive. In Global Automotive, we partner with auto dealers and agents, third-party administrators, manufacturers, equipment retailers and large banks and financing companies to market our vehicle protection, commercial equipment-related products and other related services.
In Global Automotive, we partner with auto dealers and agents, third-party administrators, manufacturers, equipment retailers and large banks and financing companies to market our vehicle protection, commercial equipment-related products and other related services.
We believe in fostering a diverse, equitable and inclusive culture to drive sustained profitable growth through innovation. We regularly evaluate our policies, practices and programs to ensure we continue to attract, develop and retain the best talent to support our strategy.
We believe in fostering an inclusive and performance-based culture to drive sustained profitable growth through innovation. We regularly evaluate our policies, practices and programs to ensure we continue to attract, develop and retain the best talent to support our strategy.
We believe 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.
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.
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. Ratings are an important factor in establishing the competitive position of insurance companies.
In fourth quarter 2023, we made the decision to fully exit our operations in mainland China (other than Hong Kong). See Note 6 to the Consolidated Financial Statements included elsewhere in this Report for more information.
In fourth quarter 2023, we made the decision to fully exit our operations in mainland China (other than Hong Kong), which were subsequently sold in 2024. See Note 5 to the Consolidated Financial Statements included elsewhere in this Report for more information.
We periodically evaluate our compensation practices and for the last several years have engaged in a multi-step process to ensure that we are compensating equitably across employees performing similar job responsibilities.
We periodically evaluate our compensation practices and for the last several years have engaged in a multi-step pay equity assessment process to ensure that we are compensating fairly for employees performing substantially similar job responsibilities.
In our financial services business, our focus is on expanding our partnerships with leading financial institutions to offer credit card benefit and packaged bank account offerings to their customers. Risk Management We earn premiums on our insurance and extended service contracts and fees for our other services.
In our financial services business, our focus is on expanding our partnerships with leading financial institutions to offer travel, purchase protection, and other credit card benefits, including underwriting and claims processing, and packaged bank account offerings to their customers. Risk Management We earn premiums on our insurance and extended service contracts and fees for our other services.
As we continue into the “Connected Decade”, we believe it will create long-term opportunities for Assurant as consumers’ lifestyles will increasingly intertwine with their connected ecosystems, which we call the connected world.
We believe this will create long-term opportunities for Assurant as consumers’ lifestyles will increasingly intertwine with their connected ecosystems, which we call the connected world.
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.
Our global workforce spans a wide range of roles and skills. While 75% of our employee base was located in North America, we continued to expand our presence in key international markets across Europe, Latin America and Asia Pacific to support our increasingly global client portfolio.
In the U.S., our largest market, women accounted for 62% of employees while other underrepresented minority groups accounted for 54% of our domestic workforce. We continue to promote a more diverse and inclusive workforce across all levels of the Company in support of our business strategy.
In the U.S., our largest market, women accounted for 63% of employees while other underrepresented minority groups accounted for 56% of our domestic workforce. We continue to promote and welcome an inclusive workforce across all levels of the Company in support of our business strategy.
Throughout the year, we have maintained a strong balance sheet, generated $772.6 million in dividends or returns of capital from our subsidiaries (net of infusions of liquid assets and excluding amounts used for acquisitions or received from dispositions) and returned $352.3 million to shareholders through share repurchases and common stock dividends.
Throughout the year, we have maintained a strong balance sheet, generating $804.7 million in dividends or returns of capital from our subsidiaries (net of infusions of liquid assets and excluding amounts used for acquisitions or received from dispositions) and returning $455.8 million to shareholders through share repurchases and common stock dividends.
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.
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. A majority of our employees work virtually on a full-time or part-time basis.
For full-year 2023, our global turnover rate was 18%, reflecting our blended workforce of frontline and managerial roles; turnover for managerial and salaried roles was 7%, and turnover for frontline employees was 24%, which is typically higher given the nature of the roles.
For full-year 2024, our global turnover rate was 13%, reflecting our blended workforce of frontline and managerial roles; turnover for managerial and salaried roles was 5%, and turnover for frontline employees was 17%, which is typically higher given the nature of the roles.
The LPI Model Act governs the insurance that a mortgage servicer obtains when a borrower fails to obtain or maintain required insurance. Several states have enacted legislation that mirrors the LPI Model Act, and we expect more states to adopt similar legislation in 2024.
The LPI Model Act governs the insurance that a mortgage servicer obtains when a borrower fails to obtain or maintain required insurance. Several states have enacted legislation that mirrors the LPI Model Act.
As of December 31, 2023, we had $33.64 billion in total assets and our debt to total capital was 30.2%. Our Global Lifestyle and Global Housing segments generate significant operating cash flows, which provide us with the flexibility to make investments to strengthen our strategic capabilities and enhance our partnerships with our clients.
As of December 31, 2024, we had $35.02 billion in total assets and our debt to total capital was 29.0%. Our business-to-business-to-consumer business model in our Global Lifestyle and Global Housing segments generate significant operating cash flows, which provide us with the flexibility to make investments to strengthen our strategic capabilities and enhance our partnerships with our clients.
Board of Directors and Committee Oversight The Board, directly and through its committees as described in their charters, oversees our risk management policies and practices, including our risk appetite, and discusses risk-related issues at least quarterly.
The Enterprise Risk Committee reviews the Company’s key enterprise risks, sets and monitors risk appetite, and oversees mitigation and remediation plans. Board of Directors and Committee Oversight The Board, directly and through its committees as described in their charters, oversees our risk management policies and practices, including our risk appetite, and discusses risk-related issues at least quarterly.
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.
We regularly engage with our employees to seek feedback through an array of forums and channels, including one-on-one discussions with managers, interactive townhall meetings, employee surveys and our enterprise-wide listening program 10 designed to expand opportunities for anonymous, real-time feedback between managers and employees. Key topics covered include our culture, learning and development, compensation, benefits, wellbeing and recognition.
We also continue to monitor and adjust market wages as necessary to ensure we provide competitive wages, consistent with our ongoing compensation practices. We remain committed to investing in our people through competitive rewards and development opportunities.
We expect to continue to assess compensation practices annually and remain committed to remediate any significant pay disparities we may discover. We also continue to monitor and adjust market wages as necessary to ensure we provide competitive wages, consistent with our ongoing compensation practices. We remain committed to investing in our people through competitive rewards and development opportunities.
In addition to the overall market, inflation has had a significant impact on our Global Automotive results as parts and labor adversely affected claims costs. Consumers are becoming increasingly connected across their mobile devices, vehicles and homes, which is creating a global market for smart home devices and related services.
In addition, inflation continues to have a significant impact on our Global Automotive results as parts and labor adversely affect claims costs for clients where we have underwriting exposure. 6 Consumers are becoming increasingly connected across their mobile devices, vehicles and homes, which is creating a global market for smart home devices and related services.
The used vehicle market in the U.S. has started to normalize from recent elevated used vehicle prices and a shift in sales to new vehicles, but this normalization is tempered by lower and aging used vehicle inventory, as well as higher interest rates.
The used vehicle market in the U.S. has started to normalize from recent elevated used vehicle prices and a shift in sales to new vehicles, but this normalization is tempered by lower and aging used vehicle inventory. In addition, higher interest rates have impacted affordability of finance and insurance products and lowered attachment rates.
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.
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.
To further promote wellbeing, Assurant introduced the Virgin Pulse global wellbeing platform allowing employees to personalize their unique wellbeing goals with access to tools, activities and ways to stay engaged and accountable for building healthy habits.
To further promote wellbeing, Assurant continued to expand the reach of its Personify Health (formerly known as Virgin Pulse) global wellbeing platform allowing employees to personalize their unique wellbeing goals with access to tools, activities and ways to stay engaged and accountable for building healthy habits.
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.
This includes ongoing investments in competitive total rewards and wellbeing offerings, and providing programs for learning, development and engagement, while continuously enhancing the experience of our employees who are critical to our long-term success. As of December 31, 2024, Assurant had approximately 14,200 employees representing, more than 80 nationalities, with a presence in 21 markets globally.
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.
We leverage those insights to invest in emerging technologies and operations, including digital solutions supported by artificial intelligence (“AI”), to introduce innovative products and services and continuously adapt those offerings to the changing needs of consumers. Value chain integration and customer experience.
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.
As we continue to evolve our product and service capabilities and respond to client and consumer needs, we expect ongoing innovation of our integrated offerings, leveraging data-driven insights, technology and AI to deliver additional value through a superior customer experience. Deploying our capital strategically. Our strong financial position provides us with flexibility to strategically deploy our capital.
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.
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. The worldwide used and refurbished smartphone market is growing, driven by the cost and availability of new devices and sustainability-conscious customers.
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.
The Compensation and Talent Committee focuses on risks relating to management succession, talent management and compensation plan design. The Nominating and Corporate Governance Committee focuses on risks relating to director succession and has ultimate oversight responsibility for how we manage sustainability. The Information Technology Committee is responsible for oversight of information technology risk assessment and risk management.
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.
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. Within this hybrid environment, we introduced a new framework to support enterprise engagement.
The Information Technology Committee is responsible for oversight of information technology risk assessment and risk management. This includes oversight of cybersecurity policies, controls and procedures, such as procedures to identify and assess internal and external cybersecurity risks. The Information Technology Committee receives updates from management, including the Chief Information Security Officer, on internal and external cybersecurity risks at least quarterly.
This includes oversight of cybersecurity policies, controls, and procedures, such as procedures to identify and assess internal and external cybersecurity risks. The Information Technology Committee receives updates from management, including the Chief Information Security Officer, on internal and external cybersecurity risks at least quarterly. In fulfilling its responsibilities, the Board and each committee have the authority to retain external advisors.
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.
We continued our ongoing real estate consolidation to support work-from-home arrangements given our increasingly hybrid workforce, while making necessary investments in key facilities (such as our Nashville Innovation and Device Care Center) and markets to support the long-term strategy of the Company. Learning and Development Learning and development are essential to Assurant’s success.
We believe this advances our operating model, creates new capacity for client growth and existing client work, fosters innovation, and enables talent to focus on customer experiences in key attractive markets.
We believe this advances our operating model, creates new capacity for client growth, fosters innovation, and enables talent to focus on customer experiences in key attractive markets. (1) Beginning in 2024, we revised the definition of employer turnover to include voluntary turnover only.
Pay Equity Assurant is committed to pay equity. Our compensation practices and programs consider a variety of factors designed to set fair and equitable compensation levels. We take a holistic approach to evaluating and aligning roles with compensation levels based on job responsibilities, market competitiveness, geographical location, strategic importance of roles and other relevant factors.
We take a holistic approach to evaluating and aligning roles with compensation levels based on job responsibilities, market competitiveness, geographical location, strategic importance of roles and other relevant factors.
Also, we expanded our Management Committee, effective January 2024 to broaden leadership expertise and depth in the areas of financial, human capital and technology strategy. These appointments further underscored our deep talent pool and robust succession bench. Our talent strategy is focused on employee engagement and investments in programs to support career development, as well as recognizing and rewarding performance.
In January 2024, we expanded our Management Committee to broaden leadership expertise and depth in the areas of financial, human capital and technology strategy. These appointments further underscored our deep talent pool and robust succession bench.
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.
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 (i) evaluating the risks embedded in and across our businesses and functional areas, (ii) developing risk appetites, (iii) managing these risks, and (iv) identifying current and future risk challenges and opportunities.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeFor 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.
Biggest changeFor example, we face the risk of the imposition of sanctions, tariffs, trade barriers or other protectionist laws or business practices that favor local competition (including from the United States), increase costs and may otherwise adversely affect our business; inflation and foreign exchange rate fluctuations; restrictions on currency conversion and the repatriation of non-U.S. investments and earnings; burdens and costs of compliance with a variety of foreign laws and regulations and the associated 24 risk and costs of non-compliance, including reputational harm; exposure to undeveloped or evolving legal systems, which may result in unpredictable or inconsistent application of laws and regulations, including export controls and exposure to commercial, political, legal or regulatory risks such as corruption; political, economic or other instability in countries in which we conduct business, including possible terrorist acts; diminished ability to enforce our contractual rights; increased risk of data breaches; differences in cultural environments; changes in regulatory requirements, including changes in regulatory treatment of certain products or services; exposure to local economic conditions and its impact on our clients’ performance and creditworthiness; and a competitive global labor market.
Acquisitions of businesses and divestitures of non-strategic businesses may not provide us with the benefits that we anticipate, require significant effort and expenditures, and entail numerous risks, difficulties and uncertainties.
Acquisitions of businesses and divestitures of non-strategic businesses may not provide us with the benefits that we anticipate, may require significant effort and expenditures, and may entail numerous risks, difficulties and uncertainties.
While we conduct diligence and screening for buyers of mobile devices that we sell, and change buyers in our program based on diligence reviews, our mobile device buyers may not comply with applicable laws and regulations, including anti-money laundering laws.
While we conduct diligence and screening for buyers of mobile devices that we sell, and we change buyers in our program based on diligence reviews, our mobile device buyers may not comply with applicable laws and regulations, including anti-money laundering laws.
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.
For example, the interest rate payable on certain series of our senior notes is subject to increase if either of S&P or Moody’s downgrades the credit rating assigned to such series of senior notes to BB+ or below or to Ba1 or below, respectively.
For example, the interest rate payable on certain series of our senior notes is subject to increase if either S&P or Moody’s downgrades the credit rating assigned to such series of senior notes to BB+ or below or to Ba1 or below, respectively.
Dollar 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 .
Dollar and other foreign currencies may materially and adversely affect our results of operations. • An impairment of our goodwill or other intangible assets could materially adversely affect our results of operations and book value. • Failure to maintain effective internal control over financial reporting could have a material adverse effect on our business and stock price. • Unfavorable conditions in the capital and credit markets may significantly and adversely affect our access to capital and our ability to pay our debts or expenses. • Our investment portfolio is subject to market risk, including changes in interest rates, that may adversely affect our results of operations and financial condition. • Our investment portfolio is subject to credit, liquidity and other risks that may adversely affect our results of operations and financial condition. • The value of our deferred tax assets could become impaired, which could materially and adversely affect our results of operations and financial condition. • Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers. • Through reinsurance, we have sold or exited businesses that could again become our direct financial and administrative responsibility if the reinsurers become insolvent. • We are exposed to risks related to the creditworthiness and reporting systems of some of our agents, third-party administrators and clients . • Our subsidiaries’ inability to pay us sufficient dividends could prevent us from meeting our obligations and paying future stockholder dividends. • Our ability to declare and pay dividends on our capital stock may be limited. • Actual results may differ materially from the analytical models we use to assist in our decision-making in key areas such as pricing, catastrophe risks, reserving and capital management. 20 Technology, Cybersecurity and Privacy Risks • The failure to effectively maintain and modernize our technology systems and infrastructure and integrate those of acquired businesses could adversely affect our business. • We could incur significant liability if our technology systems or those of third parties are breached or we or third parties otherwise fail to protect the security of data residing on our respective systems, which could adversely affect our business and results of operations .
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.
Business, Strategic and Operational Risks • Our revenues and profits may decline if we are unable to maintain relationships with significant clients, distributors and other parties, or renew contracts with them on favorable terms, or if those parties face financial, reputational or regulatory issues. • Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations. • The success of our business depends on the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce. • We may be unable to find suitable acquisition candidates at attractive prices, integrate acquired businesses or divest of non-strategic businesses effectively or achieve organic growth, which could have a material adverse effect on our business, financial condition and results of operations . • Our inability to successfully recover should we experience a business continuity event could have a material adverse effect on our business, financial condition and results of operations. • Failure to successfully manage vendors and other third parties could adversely affect our business. • We face risks associated with our international operations. 19 • Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks . • Sales of our products and services may decline if we are unable to develop and maintain distribution sources or attract and retain sales representatives and executives with key client relationships. • We face risks associated with joint ventures, franchises and investments in which we share ownership or management with third parties. • Catastrophe and non-catastrophe losses, including as a result of climate change and the current inflationary environment, could materially reduce our profitability and have a material adverse effect on our results of operations and financial condition. • Negative publicity relating to our business, industry or clients may have a material adverse effect on our financial results.
Specifically, during periods of economic downturn: 28 • individuals and businesses may (i) choose not to purchase our insurance products, extended service contracts and other products and services, (ii) terminate existing policies or contracts or permit them to lapse and (iii) choose to reduce the amount of coverage they purchase; • conditions in the markets in which we operate may deteriorate, impacting, among other things, consumer demand for the mobile devices, electronics, appliances, automobiles, housing and other products we insure, including the rate of introduction and success of new products, technologies and promotional programs that provide opportunities for growth; • clients are more likely to underperform expectations, experience financial distress and declare bankruptcy, which could have an adverse impact on the remittance of premiums from such clients and the collection of receivables from such clients for items such as unearned premiums and could otherwise expose us to credit risk; • claims on certain specialized insurance products tend to rise; • there is a risk of fraudulent insurance claims; • there may be an impairment in the value of our tangible and intangible assets and our investment portfolio may be adversely affected; • there may be fluctuations in the labor market and a negative impact on employee retention; and • our ability to access the capital markets on favorable terms or at all may be negatively impacted.
Specifically, during periods of economic downturn: 27 • individuals and businesses may (i) choose not to purchase our insurance products, extended service contracts and other products and services, (ii) terminate existing policies or contracts or permit them to lapse and (iii) choose to reduce the amount of coverage they purchase; • conditions in the markets in which we operate may deteriorate, impacting, among other things, consumer demand for the mobile devices, electronics, appliances, automobiles, housing and other products we insure, including the rate of introduction and success of new products, technologies and promotional programs that provide opportunities for growth; • clients are more likely to underperform expectations, experience financial distress and declare bankruptcy, which could have an adverse impact on the remittance of premiums from such clients and the collection of receivables from such clients for items such as unearned premiums and could otherwise expose us to credit risk; • claims on certain specialized insurance products tend to rise; • there is a risk of fraudulent insurance claims; • there may be an impairment in the value of our tangible and intangible assets and our investment portfolio may be adversely affected; • there may be fluctuations in the labor market and a negative impact on employee retention; and • our ability to access the capital markets on favorable terms or at all may be negatively impacted.
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.
If we fail to comply with applicable laws and regulations, which occurs from time to time, we may be subject to investigations, criminal penalties, civil remedies or other adverse consequences, including fines, injunctions, loss of an 36 operating license or approval, increased scrutiny or oversight by regulatory authorities, the suspension of individual employees, limitations on engaging in a particular business, redress to clients, exposure to negative publicity or reputational damage and harm to client, employee and other relationships.
The availability and cost of reinsurance are subject to prevailing reinsurance market conditions, which have been, and in the future may continue to be, adversely impacted by: the occurrence of significant reinsured events, including catastrophes, or expectations regarding increased occurrences of such events due to climate change; and other impacts on reinsurers’ capital, such as increased demand for coverage driven by inflation, a volatile investment market or unforeseen litigation costs.
The availability and cost of reinsurance are subject to prevailing reinsurance market conditions, which have been, and in the future may continue to be, adversely impacted by: the occurrence of significant reinsured events, including catastrophes; expectations regarding increased occurrences of such events due to climate change; and other impacts on reinsurers’ capital, such as increased demand for coverage driven by inflation, a volatile investment market or litigation costs.
We use modeling tools that help estimate our probable losses, but these projections are based on historical data and other assumptions that may differ materially from actual events, and their reliability and predictive value may decrease as a result of climate change. These modeling tools may not be able to anticipate emerging trends or changing marketplace conditions.
We use modeling tools that help estimate our probable losses, but these projections are based on historical data and other assumptions that may differ materially from actual events, and their reliability and predictive value may decrease as a result of climate 26 change. These modeling tools may not be able to anticipate emerging trends or changing marketplace conditions.
We believe that our future success depends in substantial part on our ability to attract, recruit, motivate, develop and retain a high-performing workforce, particularly those with specialized industry knowledge or within critical or in-demand areas such as sales, digital, customer experience, data and analytics, and supply chain, across our lines of businesses.
We believe that our future success depends in substantial part on our ability to attract, recruit, motivate, develop and retain a high-performing workforce, particularly those with specialized industry knowledge or within critical or in-demand areas such as sales, digital, customer experience, data and analytics, AI and supply chain, across our lines of businesses.
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.
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.
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.
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.
These players are focused on using technology and innovation to simplify and improve the customer experience, increase efficiencies, alter business models and effect other potentially disruptive changes in the markets in which we operate. In order to maintain a competitive position, we must continue to invest in new technologies and new ways to deliver our products and services.
These players are focused on using technology and innovation to simplify and improve the customer experience, increase efficiencies, alter business models and effect other potentially disruptive changes in the markets in which we operate. To maintain a competitive position, we must continue to invest in new technologies and new ways to deliver our products and services.
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.
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 business, results of operations and financial condition.
The withdrawal of other insurers from these or other states may lead to adverse selection and increased use of our products in these areas, and may negatively affect our loss experience and increase our costs. Negative publicity relating to our business, industry or clients may have a material adverse effect on our financial results.
The withdrawal of other insurers from these or other states may lead to adverse selection and increased use of our products in these areas, and it may negatively affect our loss experience and increase our costs. Negative publicity relating to our business, industry or clients may have a material adverse effect on our financial results.
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.
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 “ – 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.
See “ – Technology, Cybersecurity and Privacy 23 Risks – The failure to effectively maintain and modernize our technology systems and infrastructure and integrate those of acquired businesses could adversely affect our business .” Our operations depend upon our ability to protect our technology infrastructure against damage and interruption.
We will continue to incur expenses related to, among other things: investments in digital capabilities and large-scale, critical programs, such as technology, including global financial systems and infrastructure; research and development of new products and capabilities; scaling our global operations, including accessing the global talent hubs such as through our Global Capabilities Centers; and costs associated with the implementation of new contracts and businesses in runoff or which we have exited or which we expect to fully exit, including sharing economy, , and improvements in operational efficiency.
We will continue to incur expenses related to, among other things: investments in digital capabilities and large-scale, critical programs, such as technology systems and infrastructure; research and development of new products and capabilities; scaling our global operations, including accessing the global talent hubs such as through our Global Capability Centers; costs associated with the implementation of new contracts and businesses in runoff or which we have exited or which we expect to fully exit, including sharing economy; and improvements in operational efficiency.
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.
For more information on the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us in 2024 under applicable laws and regulations, without prior regulatory approval, see “Item 5 – Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities – Dividend Policy.” Any additional material restrictions on our insurance subsidiaries’ ability to pay us dividends could adversely affect our ability to pay any dividends on our common stock, service our debt and pay other expenses.
If we experience a business continuity event, such as an earthquake, hurricane, flood, terrorist incident, pandemic, security breach, cybersecurity incident, power loss, telecommunications outage or other systems failure, or other disaster, our ability to continue operations will depend on an effective business continuity and disaster recovery plan, including the safety and continued availability of our personnel, vendors and other third parties, and the proper functioning of our telecommunications and other systems and operations, including our device care centers and other facilities.
If we experience a business continuity event, such as an earthquake, hurricane, flood, terrorist incident, pandemic, security breach, cybersecurity incident, power loss, telecommunications outage or other systems failure, or other disaster, our ability to continue operations will depend on an effective business continuity and disaster recovery plan, including the safety and continued availability of our personnel including key executives, vendors and other third parties, and the proper functioning of our telecommunications and other systems and operations, including our device care centers and other facilities.
In the event that any agreements governing any such indebtedness restrict our ability to declare and pay dividends in cash on our common stock, we may be unable to declare and pay dividends in cash on our common stock unless we can repay or refinance the amounts outstanding under such agreements. 34 Actual results may differ materially from the analytical models we use to assist in our decision-making in key areas such as pricing, catastrophe risks, reserving and capital management.
In the event that any agreements governing any such indebtedness restrict our ability to declare and pay dividends in cash on our common stock, we may be unable to declare and pay dividends in cash on our common stock unless we can repay or refinance the amounts outstanding under such agreements. 33 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.
Non-catastrophe losses include losses from isolated fire, water and wind damage, theft and vandalism, as well as general liability in renters and homeowners policies, and losses from sharing economy. Losses are impacted by increases in inflation and supply chain disruptions that increase the cost of materials and labor required to settle claims, including in our Global Housing business.
Non-catastrophe losses include losses from isolated fire, water and wind damage, theft and vandalism, as well as general liability in renters and homeowners policies, and losses from sharing economy. Losses are impacted by increases in inflation and supply chain disruptions that increase the cost of materials and labor required to settle claims, primarily in our Global Housing business.
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.
Even in the absence of a takeover attempt, the 39 existence of these provisions may adversely affect the prevailing market price of our common stock if they are viewed as discouraging future takeover attempts. Additionally, applicable state and foreign insurance laws may require prior approval of an application to acquire control of a domestic insurer.
Our inability to successfully recover from a business continuity event could have a material adverse effect on our 24 business, financial condition and results of operations.
Our inability to successfully recover from a business continuity event could have a material adverse effect on our business, financial condition and results of operations.
See Note 19 to the Consolidated Financial Statements included elsewhere in this Report for additional information on our senior notes and the impact of rating changes. Fluctuations in the exchange rate of the U.S. Dollar and other foreign currencies may materially and adversely affect our results of operations . While most of our costs and revenues are in U.S.
See Note 18 to the Consolidated Financial Statements included elsewhere in this Report for additional information on our senior notes and the impact of rating changes. Fluctuations in the exchange rate of the U.S. Dollar and other foreign currencies may materially and adversely affect our results of operations . While most of our costs and revenues are in U.S.
For more information on our annual goodwill impairment testing, the goodwill of our segments and related reporting units and intangible asset impairment testing, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates – Valuation and Recoverability of Goodwill” and Notes 2 and 15 to the Consolidated Financial Statements included elsewhere in this Report.
For more information on our annual goodwill impairment testing, the goodwill of our segments and related reporting units and intangible asset impairment testing, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates – Valuation and Recoverability of Goodwill” and Notes 2 and 14 to the Consolidated Financial Statements included elsewhere in this Report.
For additional information, see “Item 3 – Legal Proceedings” and Note 28 to the Consolidated Financial Statements included elsewhere in this Report. The costs of complying with, or our failure to comply with, U.S. and foreign laws related to privacy, data security and data protection could adversely affect our financial condition, operating results and reputation.
For additional information, see “Item 3 – Legal Proceedings” and Note 26 to the Consolidated Financial Statements included elsewhere in this Report. 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.
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 .
See “ – Financial Risks – Actual results may differ materially from the analytical models we use to assist in our decision-making in key areas such as pricing, catastrophe risks, reserving and capital management. ” 28 A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition .
Each of these events may cause us to reduce the carrying value of our investment portfolio. For further details on net investment losses, see Note 8 to the Consolidated Financial Statements included elsewhere in this Report. The value of any particular fixed maturity security is subject to impairment based on the creditworthiness of its issuer.
Each of these events may cause us to reduce the carrying value of our investment portfolio. For further details on net investment losses, see Note 7 to the Consolidated Financial Statements included elsewhere in this Report. The value of any particular fixed maturity security is subject to impairment based on the creditworthiness of its issuer.
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 investments in commercial mortgage loans on real estate (which represented approximately 4% of our total investments as of December 31, 2024) are relatively illiquid. If we require extremely large amounts of cash on short notice, we may have difficulty selling these investments at attractive prices and in a timely manner.
From time to time, we may be, and in certain cases have been, subject to a variety of legal and regulatory actions relating to our current and past business operations, including: • industry-wide investigations regarding business practices, including the use and marketing of certain types of insurance policies or certificates of insurance, and compliance with guidance issued by regulators; • actions by regulatory authorities that may restrict our ability to increase or maintain our premium rates, require us to reduce premium rates, require us to allow customers to defer premium payments on certain of our products, make offering our products more expensive or unattractive to our clients, impose fines or penalties, and result in other expenses; • market conduct examinations, for which we are required to pay the expenses of the regulator as well as our own expenses, and which may result in fines, penalties, and other adverse consequences; • disputes regarding our lender-placed insurance products, including those relating to rates, agent compensation, consumer disclosure, continuous coverage requirements, loan tracking services and other services that we provide to mortgage servicers; • disputes over coverage or claims adjudication, including in our sharing economy business; • disputes over our treatment of claims, in which states or insureds may allege that we failed to make required payments or meet prescribed deadlines for adjudicating claims; • disputes regarding regulatory compliance, sales practices, disclosures, premium refunds, licensing, underwriting and compensation arrangements, including if our climate change mitigation plans and targets are not met; • disputes over liability claims under comprehensive general liability policies involving property damage or personal injury at insured properties or relating to insured vehicles; • disputes alleging bundling of credit insurance and extended service contracts and related products with other products provided by financial institutions; • disputes with tax and insurance authorities regarding our tax liabilities; • investigations alleging violations of fraud, sanctions, money laundering and/or export control laws; • disputes relating to customers’ claims that they were not aware of the full cost or existence of the insurance or limitations on insurance coverage; • disputes relating to protecting our intellectual property portfolio and by third parties alleging intellectual property infringement; and 38 • employment litigation claims brought by current or former employees.
From time to time, we may be, and in certain cases have been, subject to a variety of legal and regulatory actions relating to our current and past business operations, including: • industry-wide investigations regarding business practices, including the use and marketing of certain types of insurance policies or certificates of insurance, and compliance with guidance issued by regulators; • actions by regulatory authorities that may restrict our ability to increase or maintain our premium rates, require us to reduce premium rates, require us to allow customers to defer premium payments on certain of our products, make offering our products more expensive or unattractive to our clients, impose fines or penalties, and result in other expenses; • market conduct examinations, for which we are required to pay the expenses of the regulator as well as our own expenses, and which may result in fines, penalties, and other adverse consequences; • disputes regarding our lender-placed insurance products, including those relating to rates, agent compensation, consumer disclosure, continuous coverage requirements, loan tracking services and other services that we provide to mortgage servicers; • disputes over coverage or claims adjudication, including in our sharing economy business; • disputes over our treatment of claims, in which states or insureds may allege that we failed to make required payments or meet prescribed deadlines for adjudicating claims; • disputes regarding regulatory compliance, sales practices, disclosures, premium refunds, licensing, underwriting and compensation arrangements, including if our climate change mitigation plans and targets are not met; • disputes over liability claims under comprehensive general liability policies involving property damage or personal injury at insured properties or relating to insured vehicles; • disputes alleging bundling of credit insurance and extended service contracts and related products with other products provided by financial institutions; • disputes with tax and insurance authorities regarding our tax liabilities; • investigations alleging violations of fraud, sanctions, money laundering and/or export control laws; • disputes relating to customers’ claims that they were not aware of the full cost or existence of the insurance or limitations on insurance coverage; • disputes relating to protecting our intellectual property portfolio and by third parties alleging intellectual property infringement; and • employment litigation claims brought by current or former employees. 37 Further, actions by certain regulators may cause additional changes to the structure of the lender-placed insurance industry, including the arrangements under which we track coverage on mortgaged properties.
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.
In addition, the global talent market and shift to remote or hybrid work arrangements at many companies, including ours, 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.
Examples of important business arrangements include, at Global Lifestyle, exclusive and non-exclusive relationships with mobile service providers (including carriers, retailers, OEMs and cable operators), dealerships and agents, consumer electronics retailers, appliance retailers (including e-commerce retailers), and financial, insurance and other institutions through which we distribute our products and services.
Examples of important business arrangements include, in Global Lifestyle, exclusive and non-exclusive relationships with mobile service providers (including carriers, retailers, OEMs and cable operators), dealerships and agents, consumer electronics retailers, appliance retailers (including e-commerce retailers), and financial, insurance and other institutions through which we distribute our products and services.
The payment of dividends on our common stock may be subject to the preferential rights of preferred stock that the Board may create from time to time.
The payment of dividends on our common stock may be subject to the preferential rights of any preferred stock that the Board may create from time to time.
If we were unable for any reason to comply with any new or 39 revised requirements, including the RSA, it could result in substantial costs to us and ongoing reporting and monitoring obligations, and may materially adversely affect our results of operations and financial condition.
If we were unable for any reason to comply with any new or revised requirements, including the RSA, it could result in substantial costs to us and ongoing reporting and monitoring 38 obligations, and may materially adversely affect our results of operations and financial condition.
Each of our Global Lifestyle and Global Housing segments receives a substantial portion of its revenue from a few clients. A reduction in business with or the loss of one or more of our significant clients could have a material adverse effect on the results of operations and cash flows of individual segments or the Company.
Each of our Global Lifestyle and Global Housing segments receives a substantial portion of its revenues from a few clients. A reduction in business with or the loss of one or more of our significant clients could have a material adverse effect on the results of operations and cash flows of individual segments or the Company.
The manner in which we allocate our resources across the portfolio or the types of assets in which we seek to invest may increase credit, liquidity and other risks that may adversely affect our results of operations and financial condition. 32 The value of our deferred tax assets could become impaired, which could materially and adversely affect our results of operations and financial condition.
The manner in which we allocate our resources across the portfolio or the types of assets in which we seek to invest may increase credit, liquidity and other risks that may adversely affect our results of operations and financial condition. 31 The value of our deferred tax assets could become impaired, which could materially and adversely affect our results of operations and financial condition.
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.
As of December 31, 2024, our operations had a significant number of contracts that contain provisions that require the applicable subsidiaries to maintain minimum financial strength ratings, typically from A.M. Best, ranging from “A” or better to “B+” or better, depending on the contract.
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.
Such circumstances include a significant adverse change in legal factors, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a 29 significant decline in our expected future cash flows due to changes in company-specific factors or the broader business climate.
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.
We rely on the uninterrupted and secure operation of our technology systems, including information technology systems and operational technology systems, to operate our business and securely process, transmit and store electronic information. This electronic information includes confidential and other sensitive information, including personal data, that we receive from 34 our customers, vendors and other third parties.
This ability could be affected by various factors, including macroeconomic conditions; inflation; changes in the regulatory environment; changes in industry practices; changes in legal, social or environmental conditions; impacts from operational changes; new technologies or domestic or global supply chain or labor issues.
This ability could be affected by various factors, including macroeconomic conditions; inflation; changes in the regulatory environment; changes in industry practices; changes in legal, social or environmental conditions; impacts from operational changes; new products; and new technologies or domestic or global supply chain or labor issues.
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.
Market conditions may not allow us to invest in assets with sufficiently high returns to meet our pricing assumptions and profit targets over the long term. 30 We are subject to interest rate risk in our investment portfolio.
We are subject to credit and other risks with respect to our ability to recover amounts due from reinsurers, the FHCF and the RAP program. The inability to collect amounts due from reinsurers and any changes in the FHCF and the RAP program could materially adversely affect our results of operations and financial condition.
We are subject to credit and other risks with respect to our ability to recover amounts due from reinsurers and the FHCF. The inability to collect amounts due from reinsurers and any changes in the FHCF could materially adversely affect our results of operations and financial condition.
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.
While management has certified that our internal control over financial reporting was effective as of December 31, 2024, because internal control over financial reporting is complex, there can be no assurance that our internal control over financial reporting will be effective in the future.
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 may be unable to integrate the systems of the 35 businesses we acquire into our environment in a timely manner, which could further increase these risks until such integration takes place.
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.
Doing so may be difficult due to many factors, including fluctuations in economic and industry conditions; employee expectations; the effectiveness of our talent strategies and total rewards and wellbeing programs; 22 and fluctuations in the labor market, including rising wages and competition for talent, which has generally increased due to labor shortages and wage inflation.
In addition, our modeling tools that support business decisions involve historical data and numerous assumptions that may differ materially from actual events. 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.
In addition, our modeling tools that support business decisions involve historical data and numerous assumptions that may differ materially from actual events. 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, particularly in our Global Housing business.
Dollars, some are in other currencies, including labor costs in our international locations and Global Capabilities Centers. Because our financial results in certain countries are translated from local currency into U.S. Dollars upon consolidation, our results of operations, including period-over-period comparisons, have been and may continue to be affected by foreign exchange rate fluctuations.
Dollars, some are in other currencies, including labor costs in our international locations and Global Capability Centers. Because our financial results in certain countries are translated from local currency into U.S. Dollars upon consolidation, our results of operations, including period-over-period comparisons, have been and may continue to be affected by foreign exchange rate fluctuations. If the U.S.
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.
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.
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.
As of December 31, 2024, fixed maturity securities represented approximately 84% and below investment grade securities (rated “BB” or lower by nationally recognized statistical rating organizations) represented approximately 6% of our total investments. Below investment grade securities generally are expected to provide higher returns but present greater risk and can be less liquid than investment grade securities.
As a result, competition may adversely affect the persistency of our policies, our ability to sell products and provide services, maintain client relationships, and our revenues and results of operations, which has occurred from time to time.
As a result, competition may adversely affect the persistency of our policies, our ability to sell products and provide services, maintain client relationships (including significant clients), and our revenues and results of operations, which has occurred from time to time.
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.
Equity securities represented approximately 2% of our total investments as of December 31, 2024. However, we have had higher percentages of equity securities in the past and may make more equity investments in the future. Investments in equity securities generally are expected to provide higher total returns but present greater risk to preservation of capital than our fixed maturity securities.
At Global Housing, we have exclusive and non-exclusive relationships with mortgage lenders and servicers, manufactured housing lenders, property managers, and financial, insurance and other institutions.
In Global Housing, we have exclusive and non-exclusive relationships with mortgage lenders and servicers, manufactured housing lenders, property managers, and financial, insurance and other institutions.
Federal, state or foreign tax laws and regulations, or their interpretation and application, are subject to significant change and may have a material adverse impact on our results of operations and financial condition.
Federal, state and foreign tax laws and regulations, or their interpretation and application, are subject to significant changes that may have a material adverse impact on our results of operations and financial condition.
An impairment of our goodwill or other intangible assets could materially adversely affect our results of operations and book value. As a result of acquisitions, we have added a considerable amount of goodwill and other intangible assets to our balance sheet. Goodwill represented 54% of our total equity as of December 31, 2023.
An impairment of our goodwill or other intangible assets could materially adversely affect our results of operations and book value. As a result of acquisitions, we have added a considerable amount of goodwill and other intangible assets to our balance sheet. Goodwill represented 51% of our total equity as of December 31, 2024.
There is a risk that purchasers may be able to obtain more favorable terms and offerings from competitors, vendors or other third parties, including pricing and technology.
There is a risk that clients or customers may be able to obtain more favorable terms and offerings from competitors, vendors or other third parties, including pricing and technology.
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.
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 substantial volatility in interest rates.
Furthermore, if one or more of our clients or distributors, for example in the wireless, automotive or mortgage servicing markets, consolidate or align themselves with other companies with whom we do not do business, they may choose to utilize or distribute the products and services of our competitors, which could materially reduce our revenues and profits.
Furthermore, if one or more of our clients or distributors, for example in the mobile, automotive or mortgage servicing markets, consolidate or align themselves with other companies with whom we do not do business, they may choose to utilize or distribute the products and services of our competitors, which has occurred from time to time and could materially reduce our revenues and profits.
We have exited, expect to fully exit and in the future may exit certain businesses, including small commercial, through reinsurance. We have a reinsurance recoverable balance with John Hancock Life Insurance Company (“John Hancock”) of $416.0 million as of December 31, 2023, related to the sale of our Long-Term Care division through reinsurance. The A.M.
We have exited, expect to fully exit and in the future may exit certain businesses, including small commercial, through reinsurance. We have a reinsurance recoverable balance with John Hancock Life Insurance Company (“John Hancock”) of $471.5 million as of December 31, 2024, related to the sale of our Long-Term Care division through reinsurance. The A.M.
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.
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.
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.
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, or on the broader industries in which we operate, which may subject us to negative publicity.
In addition, other intangible assets collectively represented 12% of our total equity as of December 31, 2023. Estimated useful lives of finite intangible assets are reassessed on an annual basis.
In addition, other intangible assets collectively represented 10% of our total equity as of December 31, 2024. Estimated useful lives of finite intangible assets are reassessed on an annual basis.
Our competitive position may be impacted if we are unable to deploy, in a cost effective and competitive manner, technology such as artificial intelligence and machine learning, or if our competitors collect and use data which we do not have the ability to access or use.
Our competitive position may be impacted if we are unable to deploy, in an effective, compliant and competitive manner, technology such as artificial intelligence and machine learning, or if our competitors collect and use data that we do not have the ability to access or use.
Our long-term strategy depends on successful operational execution and our ability to execute on our transformational initiatives, including acquisitions, combined with our ability to innovate and develop new products, achieve operating efficiencies, and attract and retain a global and diverse workforce.
Our long-term strategy depends on successful operational execution and our ability to execute on our growth initiatives, including acquisitions and investments in organic growth, combined with our ability to innovate and develop new products, achieve operating efficiencies, and attract and retain a global workforce.
Under current income tax guidance, a deferred tax asset should be reduced by a valuation allowance, or a liability related to uncertain tax positions should be accrued, if, based on the weight of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized.
Under current income tax guidance, a deferred tax asset should be reduced by a valuation allowance if, based on the weight of all available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized.
As we continue to scale our global operations and grow our international labor force within Global Capabilities Centers, our business becomes increasingly exposed to these and other risks, including where certain countries or regions have recently experienced economic or political instability, such as in Argentina and Brazil.
As we continue to scale our global operations and grow our international labor force within Global Capability Centers, our business becomes increasingly exposed to these and other risks, including where certain countries or regions have experienced economic or political instability.
Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers . As part of our overall risk and capacity management strategy, we purchase reinsurance for certain risks underwritten by our various operating segments.
Reinsurance may not be adequate or available to protect us against losses, and we are subject to the credit risk of reinsurers. As part of our overall risk and capacity management strategy, we purchase reinsurance for certain risks underwritten by our various operating segments. We also access the Florida Hurricane Catastrophe Fund (“FHCF”) to reinsure eligible Florida risks.
As of December 31, 2023, fixed maturity securities represented approximately 84% of our total investments and full year 2023 gross investment income from fixed maturity securities totaled $335.3 million.
As of December 31, 2024, fixed maturity securities represented approximately 84% of our total investments and full year 2024 gross investment income from fixed maturity securities totaled $385.9 million.
Although we are in the process of implementing an integrated global financial system to, among other things, minimize our reliance on and use of manual processes, there can be no assurance that the implementation will be completed in a timely manner or on budget, or that it will achieve all of its intended goals.
Although we have implemented an integrated global financial system in North America and are in the process of implementing it globally to, among other things, minimize our reliance on and use of manual processes, there can be no assurance that the implementation will achieve all of its intended goals.
For additional information, see “Item 1 – Business – Regulation” in this Report. We are involved in a variety of litigation and legal and regulatory proceedings relating to our current and past business operations and may, from time to time, become involved in other such actions. We continue to defend ourselves vigorously in these proceedings.
We are involved in a variety of litigation and legal and regulatory proceedings relating to our current and past business operations and may, from time to time, become involved in other such actions. We continue to defend ourselves vigorously in these proceedings.
We distribute many of our insurance products and services through a variety of channels, including service providers (including device carriers and cable operators), financial institutions, mortgage lenders and servicers, retailers, association groups, other third-party marketing organizations and, to a limited extent, our own captives and affiliated agents. Our relationships with these distributors are significant for our revenues and profits.
We distribute many of our insurance products and services through a variety of channels, including service providers (such as device carriers and cable operators), financial institutions, mortgage lenders and servicers, retailers, association groups, 25 other third-party marketing organizations and, to a limited extent, our own captives and affiliated agents.
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.
Any of these developments could materially adversely affect our results of operations and financial condition. 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.
Dollar strengthens against a local currency. In 2023, we reported a $31.3 million unfavorable impact to net income due to foreign exchange-related losses. These fluctuations in currency exchange rates may result in losses that materially and adversely affect our results of operations. Additionally, we may incur foreign exchange losses in connection with the designation of the U.S.
In 2024, we reported a $0.8 million unfavorable impact to net income due to foreign exchange-related losses. These fluctuations in currency exchange rates may result in losses that materially and adversely affect our results of operations. Additionally, we may incur foreign exchange losses in connection with the designation of the U.S. Dollar as the functional currency of our international subsidiaries.
The realization of deferred tax assets depends upon the existence of sufficient taxable income of the same character during the carryback or carry-forward periods. In determining the appropriate valuation allowance, management made certain judgments relating to recoverability of deferred tax assets, use of tax loss and tax credit carry-forwards, levels of expected future taxable income and available tax planning strategies.
In determining the appropriate valuation allowance, management made certain judgments relating to recoverability of deferred tax assets, use of tax loss and tax credit carry-forwards, levels of expected future taxable income of the appropriate character and available tax planning strategies.
From time to time, we adjust our reserves, and may adjust our reserving methodology, as these factors, our claims experience and estimates of future trends in claims frequency and severity change. Reserve adjustments may cause volatility in our reported results, such as the reserve reductions in 2023 compared to reserve increases in 2022.
From time to time, we adjust our reserves, and may adjust our reserving methodology, as these factors, our claims experience and estimates of future trends in claims frequency and severity change. Reserve adjustments have caused volatility in our reported results.
To a large extent, we do not currently hedge foreign currency risk. If the U.S. Dollar weakens against a local currency, the translation of our foreign-currency-denominated balances will result in increased net assets, net revenue, operating expenses and net income. Similarly, our net assets, net revenue, operating expenses and net income will decrease if the U.S.
Dollar weakens against a local currency, the translation of our foreign-currency-denominated balances will result in increased net assets, net revenue, operating expenses and net income. Similarly, our net assets, net revenue, operating expenses and net income will decrease if the U.S. Dollar strengthens against a local currency.
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.
We rely on manual processes and procedures that subject us to increased risk of error and internal control failure compared to automated processes.
We are exposed to risks related to the creditworthiness and reporting systems of some of our agents, third-party administrators and clients. We are subject to the credit risk of some of the agents, third-party administrators, clients and client-owned reinsurance companies with which we contract in our businesses.
We are subject to the credit risk of some of the agents, third-party administrators, clients, client-owned reinsurance companies and clean energy sponsors with which we contract in our businesses.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWhile we have not experienced a cybersecurity incident that resulted in a material adverse effect on our business, operations, financial condition or results of operations, there can be no guarantee that we will not experience such an incident in the future. Although we maintain cybersecurity insurance, the costs and expenses related to cybersecurity incidents may not be fully insured.
Biggest changeRisks from Cybersecurity Threats While we have not experienced a cybersecurity incident that resulted in a material adverse effect on our business, operations, financial condition or results of operations, there can be no guarantee that we will not experience such an incident in the future.
The Board has ultimate oversight of cybersecurity risk. The Board reviews management’s assessment of our key enterprise risks and its strategy with respect to each risk, including cybersecurity risks, and receives a corresponding risk management update annually.
Board Oversight The Board has ultimate oversight of cybersecurity risk. The Board reviews management’s assessment of our key enterprise risks and its strategy with respect to each risk, including cybersecurity risks, and receives a corresponding risk management update annually.
Our CISO has implemented a management-level governance structure and process to assess, identify, manage and report cybersecurity risks, and manage our overall information security program.
Our CISO has implemented a management-level governance structure and process to assess, identify, manage and report cybersecurity risks, and to manage our overall information security program.
We require employees to participate in annual cybersecurity training and provide them with additional optional training and awareness materials, and regularly engage our employees in phishing exercises, reporting results to the Information Technology Committee. In addition, we regularly engage assessors, consultants, auditors and other third parties in our management of cybersecurity risk.
We require employees to participate in annual cybersecurity training and provide them with additional optional training and awareness materials, and we regularly engage our employees in phishing exercises, reporting results to the Information Technology Committee. In addition, we regularly engage assessors, consultants, auditors and other third parties in our management of cybersecurity risk.
We assess third-party cybersecurity controls through a cybersecurity questionnaire and a review of independent cybersecurity rating assessments. Our contracts with third parties generally include security and privacy addendums where applicable and require counterparties to meet a specific standard of data security and report cybersecurity incidents to us.
We assess third-party cybersecurity controls through a cybersecurity questionnaire and a review of independent cybersecurity rating assessments. Our contracts with third parties generally include security and privacy addendums where applicable and require counterparties to meet a specific standard of data security and to report cybersecurity incidents to us.
The Information Technology Committee reviews the effectiveness of our cybersecurity controls and procedures, including procedures to identify and assess internal and external risks from cybersecurity threats; controls to prevent and protect from cyberattacks, unauthorized access or other malicious acts and risks; procedures to detect, respond to, mitigate negative effects from and remediate cybersecurity attacks; and controls and procedures for fulfilling applicable regulatory reporting and disclosure obligations of the risks and costs of cybersecurity incidents.
The Information Technology Committee of the Board reviews the effectiveness of our cybersecurity controls and procedures, including procedures to identify and assess internal and external risks from cybersecurity threats; controls to prevent and protect from cyberattacks, unauthorized access or other malicious acts and risks; procedures to detect, respond to, mitigate negative effects from and remediate cybersecurity attacks; and controls and procedures for fulfilling applicable regulatory reporting and disclosure obligations of the risks and costs of cybersecurity incidents.
In the event of a cybersecurity incident, we follow our Enterprise Information Security Incident Response Plan (the “IRP”), which outlines steps from incident detection to assessment, response, mitigation, recovery and notification, including to key functional areas such as Global Risk 41 Management, Corporate Law, Privacy and Compliance, senior leadership and the Board, as appropriate.
In the event of a cybersecurity incident, we follow our Enterprise Information Security Incident Response Plan (the “IRP”), which outlines steps from incident detection to assessment, response, mitigation, recovery and notification, including to key functional areas such as Global Risk Management, Corporate Law, Privacy and Compliance, senior leadership and the Board, as appropriate.
We have implemented cybersecurity policies and standards based on leading industry frameworks, including the ISO 27001 standard and the National Institute of Standards and Technology Cybersecurity Framework, and regularly assess our policies and practices, including tabletop exercises, aimed at mitigating cybersecurity risks.
Risk Management Policies and Procedures 40 We have implemented cybersecurity policies and standards based on leading industry frameworks, including the ISO 27001 standard and the National Institute of Standards and Technology Cybersecurity Framework, and we regularly assess our policies and practices, including tabletop exercises, aimed at mitigating cybersecurity risks.
Our Chief Information Security Officer (“CISO”) briefs or provides a report to the Information Technology Committee on our cybersecurity and information security posture and program at least quarterly, including penetration test results and related remediation and significant cybersecurity incidents, and also provides an annual cybersecurity update to the full Board. Cybersecurity risk is integrated into our Global Risk Management process.
Our Chief Information Security Officer (“CISO”) briefs or provides a report to the Information Technology Committee on our cybersecurity and information security posture and program at least quarterly, including penetration test results and related remediation and significant cybersecurity incidents. The CISO also provides an annual cybersecurity update to the full Board.
Cybersecurity risk continues to be identified as one of our key enterprise risks. Risk owners from the Management Committee, senior leadership and the Global Risk Management function have been assigned to develop risk mitigation plans, which are tracked and reported at least quarterly to the Finance and Risk Committee of the Board and annually to the Board.
Risk owners from the Management Committee, senior leadership and the Global Risk Management function have been assigned to develop risk mitigation plans, which are tracked and reported at least quarterly to the Finance and Risk Committee of the Board and annually to the full Board.
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Role of Management Cybersecurity risk is integrated into our Global Risk Management process. Cybersecurity risk continues to be identified as one of our key enterprise risks.
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Although we maintain cybersecurity insurance, the costs and expenses related to cybersecurity incidents may not be fully insured.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeDuring 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.
Biggest changeIn December 2024, we started marketing for sale the property located in Florence, South Carolina. In January 2025, we entered into an agreement to sell our office in Miami, Florida, which had served as a shared office space supporting our Global Lifestyle and Global Housing businesses.
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.
For more information on the sale, see “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.” In addition, we have started marketing for sale the property located in Florence, South Carolina. We lease office space and device care centers globally, with terms ranging from month-to-month to twelve years.
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We believe that our owned and leased properties are sufficient to support our current business operations. See Notes 13 and 26 to the Consolidated Financial Statements included elsewhere in this Report for additional information about our properties.

Item 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 27 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 26 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 changeIn 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.
Biggest changeAs of December 31, 2024, $374.5 million aggregate cost at purchase remained unused under the repurchase authorization.
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.
The graph assumes that the value of the investment in our common stock and each index was $100 on December 31, 2019 and that all dividends were reinvested. 43 Total Values/Annual Return Percentages (Includes reinvestment of dividends) Initial Investment at 12/31/2019 TOTAL VALUES December 31, Security / Index 2020 2021 2022 2023 2024 Assurant, Inc.
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.
See “Item 1A – Risk Factors – Financial Risks – Our subsidiaries’ inability to pay us sufficient dividends could prevent us from meeting our obligations and paying future stockholder dividends .” For the year ending December 31, 2025, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us under applicable laws and regulations, without prior regulatory approval, is approximately $524.2 million.
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.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is listed on the NYSE under the symbol “AIZ.” On February 14, 2025, there were approximately 216 registered holders of record of our common stock.
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.
Stock Performance Graph The following graph compares the cumulative total return (stock price increase plus reinvestment of dividends paid) on our common stock from December 31, 2019 through December 31, 2024 with the cumulative total returns for the S&P 400 MidCap Index and the S&P 500 Index, as the broad equity market indexes, and the S&P 500 Multi-line Insurance Index and the S&P 1500 Property & Casualty Index (“S&P 1500 P&C Index”), as the published industry indexes.
Dividends or returns of capital paid by our subsidiaries, net of infusions of liquid assets and excluding amounts used for acquisitions or received from dispositions, was approximately $772.6 million for the year ended December 31, 2023, of which $622.7 million was generated by our U.S. domiciled insurance subsidiaries.
Dividends or returns of capital paid by our subsidiaries, net of infusions of liquid assets and excluding amounts used for acquisitions or received from dispositions, was 44 approximately $804.7 million for the year ended December 31, 2024, of which $420.0 million was generated by our U.S. domiciled insurance subsidiaries.
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.
Common Stock 6.09 % 16.46 % (18.34) % 37.52 % 28.55 % S&P 500 Index 18.40 28.71 (18.11) 26.29 25.02 S&P 400 MidCap Index 13.66 24.76 (13.06) 16.44 13.93 S&P 500 Multi-line Insurance Index (18.28) 45.78 9.67 12.21 8.12 S&P 1500 P&C Index 5.39 19.57 14.80 10.94 33.58 Issuer Purchases of Equity Securities The table below provides information regarding purchases of our common stock during the fourth quarter of 2024.
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.
Period in 2024 Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (1) October 1 – October 31 98,507 $ 194.37 98,507 $ 475.4 November 1 – November 30 134,992 223.27 134,992 445.2 December 1 – December 31 325,011 217.47 325,011 374.5 Total fourth quarter 558,510 $ 214.80 558,510 $ 374.5 (1) Shares purchased pursuant to the November 2023 publicly announced share repurchase authorization of up to $600.0 million aggregate cost at purchase of outstanding common stock.
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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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Beginning with the 2024 Form 10-K, we changed one of our benchmark indexes from the S&P 500 Multi-line Insurance Index to the S&P 1500 P&C Index, as we believe it better reflects our current mix of businesses after our multi-year transformation that included exiting preneed, health and life insurance-related businesses.
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Data for the S&P 500 Multi-line Insurance Index is provided for comparison purposes only as we transition to use of the S&P 1500 P&C Index.
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Common Stock $ 100.00 $ 106.09 $ 123.55 $ 100.90 $ 138.75 $ 178.36 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 S&P 400 MidCap Index 100.00 113.66 141.80 123.28 143.54 163.54 S&P 500 Multi-line Insurance Index 100.00 81.72 119.13 130.65 146.61 158.51 S&P 1500 P&C Index 100.00 105.39 126.01 144.67 160.50 214.39 ANNUAL RETURN PERCENTAGES Years Ended December 31, Security / Index 2020 2021 2022 2023 2024 Assurant, Inc.

Item 7. Management's Discussion & Analysis

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

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Biggest changeThe increase in net income was partially offset by higher after-tax depreciation expenses of $18.2 million, mainly due to higher software assets placed into service, lower earnings from Global Lifestyle, mainly due to ongoing elevated claims in Global Automotive, and $12.7 million of higher losses from foreign exchange from the remeasurement of net monetary assets in Argentina, due to the country’s classification as a highly inflationary economy. 51 Global Lifestyle The table below presents information regarding the Global Lifestyle segment’s results of operations for the periods indicated: For the Years Ended December 31, 2023 2022 Revenues: Net earned premiums $ 7,362.6 $ 6,952.3 Fees and other income 1,198.8 1,109.6 Net investment income 347.5 253.6 Total revenues 8,908.9 8,315.5 Benefits, losses and expenses: Policyholder benefits 1,607.9 1,356.6 Underwriting, selling, general and administrative expenses 6,508.7 6,149.5 Total benefits, losses and expenses 8,116.6 7,506.1 Global Lifestyle Adjusted EBITDA $ 792.3 $ 809.4 Net earned premiums, fees and other income: Connected Living $ 4,376.8 $ 4,259.4 Global Automotive 4,184.6 3,802.5 Total $ 8,561.4 $ 8,061.9 Net earned premiums, fees and other income: Domestic $ 6,739.5 $ 6,270.9 International 1,821.9 1,791.0 Total $ 8,561.4 $ 8,061.9 Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022 Adjusted EBITDA decreased $17.1 million, or 2%, to $792.3 million for Twelve Months 2023 from $809.4 million for Twelve Months 2022, primarily due to ongoing elevated claims costs in Global Automotive, including higher labor and parts costs due to inflation and unfavorable loss experience in select ancillary products, lower mobile results in Asia Pacific, including the impact of foreign exchange, and lower profitability in extended service contracts.
Biggest changeThe increase in net income was partially offset by $106.9 million increase in after-tax reportable catastrophes, higher after-tax depreciation expenses of $23.8 million, mainly due to higher software assets placed into service, and lower earnings from Global Lifestyle, mainly due to elevated claims in Global Automotive. 52 Global Lifestyle The table below presents information regarding the Global Lifestyle segment’s results of operations for the periods indicated: For the Years Ended December 31, 2024 2023 Revenues: Net earned premiums $ 7,506.0 $ 7,362.6 Fees and other income 1,461.3 1,198.8 Net investment income 356.6 347.5 Total revenues 9,323.9 8,908.9 Benefits, losses and expenses: Policyholder benefits 1,738.6 1,607.9 Selling and underwriting expenses 4,770.4 4,789.3 Cost of sales 841.6 564.2 General expenses 1,199.9 1,155.2 Total benefits, losses and expenses 8,550.5 8,116.6 Global Lifestyle Adjusted EBITDA $ 773.4 $ 792.3 Net earned premiums, fees and other income: Connected Living $ 4,807.9 $ 4,376.8 Global Automotive 4,159.4 4,184.6 Total $ 8,967.3 $ 8,561.4 Net earned premiums, fees and other income: Domestic $ 6,970.2 $ 6,739.5 International 1,997.1 1,821.9 Total $ 8,967.3 $ 8,561.4 Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 Adjusted EBITDA decreased $18.9 million, or 2%, to $773.4 million for Twelve Months 2024 from $792.3 million for Twelve Months 2023, primarily due to elevated claims costs in Global Automotive, mainly from higher losses in select ancillary products, and from higher labor and parts costs due to inflation, higher expenses for investments in new client programs and capabilities in Connected Living, declines across mobile from trade-in programs due to the business mix and lower volumes and from mobile device protection from higher loss experience, and the unfavorable impact of foreign exchange.
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.
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 • hindsight testing of prior loss estimates - the loss estimates on some product lines will vary from actual loss experience more than others.
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.
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.
Factors used in their calculation include experience derived from historical claim payments and actuarial assumptions. Calculations incorporate assumptions about the incidence of incurred claims, the extent to which all claims have been reported, reporting lags, expenses, inflation rates, future investment earnings, internal claims processing costs and other relevant factors.
Factors used in their calculation include experience derived from historical claim payments 47 and actuarial assumptions. Calculations incorporate assumptions about the incidence of incurred claims, the extent to which all claims have been reported, reporting lags, expenses, inflation rates, future investment earnings, internal claims processing costs and other relevant factors.
Short Duration Contracts Claims and benefits payable reserves for short duration contracts include (1) case reserves for known claims which are unpaid as of the balance sheet date; (2) IBNR reserves for claims where the insured event has occurred but has not been reported to us as of the balance sheet date; and (3) loss adjustment expense reserves for the expected handling costs of settling the claims.
Short Duration Contracts Claims and benefits payable reserves for short duration contracts include (1) case reserves for known claims which are unpaid as of the balance sheet date; (2) IBNR reserves for claims where the insured event has occurred but has not been 48 reported to us as of the balance sheet date; and (3) loss adjustment expense reserves for the expected handling costs of settling the claims.
Such indicators include: a significant adverse change in legal factors, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a significant decline in our expected future cash flows due to changes in company-specific factors or the broader business climate. The evaluation of such factors requires considerable management judgment.
Such indicators include: a significant adverse change in legal factors, an adverse action or assessment by a regulator, unanticipated competition, loss of key personnel or a significant decline in our expected future cash flows due to 50 changes in company-specific factors or the broader business climate. The evaluation of such factors requires considerable management judgment.
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.
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.
The underlying premise of the Chain Ladder method is that future claims development is best estimated using past claims development, whereas the Bornhuetter-Ferguson method employs a combination of past claims development and prior estimates of ultimate losses based on an expected loss ratio.
The underlying premise of the Chain Ladder method is that future claims development is best estimated using past claims development, whereas the Bornhuetter-Ferguson method employs a combination of past claims development and estimates of ultimate losses based on an expected loss ratio.
Our actual results might differ materially from those projected in these forward-looking statements as a result of various factors, including those discussed below and elsewhere in this Report, particularly under the headings “Item 1A – Risk Factors” and “Forward-Looking Statements.” General Segment Information As of December 31, 2023, we had two reportable operating segments which are defined based on the manner in which the Company’s chief operating decision maker, our CEO, reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered: • Global Lifestyle: includes mobile device solutions (including extended service contracts, insurance policies and related services), extended service contracts and related services for consumer electronics and appliances, and 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”); and • Global Housing: includes lender-placed homeowners, manufactured housing and flood insurance, as well as voluntary manufactured housing, condominium and homeowners insurance (referred to as “Homeowners”); and renters insurance and other products (referred to as “Renters and Other”).
Our actual results might differ materially from those projected in these forward-looking statements as a result of various factors, including those discussed below and elsewhere in this Report, particularly under the headings “Item 1A – Risk Factors” and “Forward-Looking Statements.” General Segment Information As of December 31, 2024, we had two reportable operating segments which are defined based on the manner in which the Company’s chief operating decision maker, our CEO, reviews the business to assess performance and allocate resources, and which align to the nature of the products and services offered: • Global Lifestyle: includes mobile device solutions (including extended service contracts, insurance policies and related services), extended service contracts and related services for consumer electronics and appliances, and financial services and other insurance products (referred to as “Connected Living”); and vehicle protection services, commercial equipment services and other related services (referred to as “Global Automotive”); and • Global Housing: includes lender-placed homeowners, manufactured housing and flood insurance, as well as voluntary manufactured housing, condominium and homeowners insurance (referred to as “Homeowners”); and renters insurance and other products (referred to as “Renters and Other”).
See Note 5 to the Consolidated Financial Statements included elsewhere in this Report for more information on our evaluation of the credit risk exposure from these recoverables. As a result, the amounts presented in this table do not agree to the future policy benefits and expenses and claims and benefits payable in the consolidated balance sheets.
See Note 4 to the Consolidated Financial Statements included elsewhere in this Report for more information on our evaluation of the credit risk exposure from these recoverables. As a result, the amounts presented in this table do not agree to the future policy benefits and expenses and claims and benefits payable in the consolidated balance sheets.
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.
Our results also depend on our ability to profitably grow our businesses, including our Connected Living, Global Automotive and Renters businesses, and the performance of our Homeowners business.
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.
We define Adjusted EBITDA, our segment measure of profitability, as net income excluding net realized gains (losses) on investments and fair value changes to equity securities, non-core operations (which consists of certain businesses which we have fully exited or expect to fully exit, including the long-tail commercial liability businesses (sharing economy and small commercial businesses), certain legacy long-duration insurance policies and our operations in mainland China (not Hong Kong)), restructuring costs related to strategic exit activities (outside of normal periodic restructuring and cost management activities), Assurant Health runoff operations, interest expense, provision (benefit) for income taxes, depreciation expense, amortization of purchased intangible assets, as well as other highly variable or unusual items.
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.
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 9 to the Consolidated Financial Statements.
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.
Our subsidiaries do not maintain commercial paper or other borrowing facilities. This program is currently backed up by the Credit Facility, of which $500.0 million was available as of December 31, 2024.
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.
The Credit Facility has a sublimit for letters of credit issued thereunder of $50.0 million. The proceeds from these loans may be used for our commercial paper program or for general corporate purposes. 59 We made no borrowings using the Credit Facility during Twelve Months 2024 and no loans were outstanding as of December 31, 2024.
See also Notes 2, 8 and 10 to the Consolidated Financial Statements included elsewhere in this Report, “Item 1A – Risk Factors – Financial Risks – Our investment portfolio is subject to credit, liquidity and other risks that may adversely affect our results of operations and financial condition ” and “ – Investments” contained in this Item 7.
See also Notes 2, 7 and 9 to the Consolidated Financial Statements included elsewhere in this Report, “Item 1A – Risk Factors – Financial Risks – Our investment portfolio is subject to credit, liquidity and other risks that may adversely affect our results of operations and financial condition ” and “ – Investments” contained in this Item 7.
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.
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, which will be impacted by our ability to provide a superior 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.
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.
We had $1.81 billion in cash and cash equivalents as of December 31, 2024. Please see “ – Liquidity and Capital Resources” below for further details. Revenues We generate revenues primarily from the sale of our insurance policies, service contracts and related products and services, and from income earned on our investments.
We did not use the commercial paper program during Twelve Months 2023 and there were no amounts relating to the commercial paper program outstanding as of December 31, 2023. 58 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.
We did not use the commercial paper program during Twelve Months 2024 and there were no amounts relating to the commercial paper program outstanding as of December 31, 2024. For additional information, see Note 18 to the Consolidated Financial Statements included elsewhere in this Report. Letters of Credit Letters of credit are issued in the ordinary course of business.
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.
Valuation and Recoverability of Goodwill Our goodwill related to acquisitions of businesses was $2.62 billion and $2.61 billion as of December 31, 2024 and 2023, respectively. We review our goodwill annually in the fourth quarter for impairment, or more frequently if indicators of impairment exist.
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 total gross reserve for fully reinsured runoff operations that was excluded was $642.1 million which, if the reinsurers defaulted, would be payable over a 30+ year period with the majority of the payments occurring after 5 years. Additional information on the reinsurance arrangements can be found in Note 17 to the Consolidated Financial Statements included elsewhere in this Report.
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.
For further information on our ratings and the risks of ratings downgrades, see “Item 1 – Business – Ratings” and “Item 1A – Risk Factors – Financial Risks – A decline in the financial strength ratings of our insurance subsidiaries could adversely affect our results of operations and financial condition. ” Holding Company As of December 31, 2024, we had approximately $673.0 million in holding company liquidity, $448.0 million above our targeted minimum level of $225.0 million.
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 can use such assets for stock repurchases, stockholder dividends, acquisitions and other corporate purposes. Dividends or returns of capital paid by our subsidiaries, net of infusions of liquid assets and excluding amounts used for or as a result of acquisitions or received from dispositions, were $804.7 million and $772.6 million for Twelve Months 2024 and Twelve Months 2023, respectively.
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.
These letters of credit are supported by commitments under which we are required to indemnify the financial institution issuing the letter of credit if the letter of credit is drawn. We had $1.8 million and $2.9 million of letters of credit outstanding as of December 31, 2024 and 2023, respectively.
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.
We use the term “holding company liquidity” to represent the portion of cash and other liquid marketable securities held at Assurant, Inc. (out of a total of $760.1 million as of December 31, 2024) which we are not otherwise holding for a specific purpose as of the balance sheet date.
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.
For the year ending December 31, 2025, the maximum amount of dividends our regulated U.S. domiciled insurance subsidiaries could pay us, under applicable laws and regulations without prior regulatory approval, is approximately $524.2 million. Our international and non-insurance subsidiaries provide additional sources of dividends.
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.
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.
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.
See “Item 1A – Risk Factors – Business, Strategic and Operational Risks – Significant competitive pressures, changes in customer preferences and disruption could adversely affect our results of operations, ” “ – Our mobile business is subject to the risk of declines in the value and availability of mobile devices, and to regulatory compliance and other risks ” and “ – The success of our business depends on 46 the execution of our strategy, including through the continuing service of key executives, senior leaders, highly-skilled personnel and a high-performing workforce.” For Twelve Months 2024, net cash provided by operating activities was $1.33 billion; net cash used in investing activities was $657.8 million; and net cash used in financing activities was $477.5 million.
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.
Factors affecting these items, including conditions in the financial markets, the global economy, political conditions and the markets in which we operate, fluctuations in exchange rates, interest rates and inflation, including the current period of inflationary pressures which have impacted claims costs including in the Global Automotive business, and tariffs and global supply chain disruptions may have a material adverse effect on our results of operations or financial condition.
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 – 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.
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 table below shows our recent net cash flows for the periods indicated: For the Years Ended December 31, 2024 2023 Net cash provided by (used in): Operating activities $ 1,332.7 $ 1,138.1 Investing activities (657.8) (637.7) Financing activities (477.5) (403.9) Effect of exchange rate changes on cash and cash equivalents (17.1) (5.8) Net change in cash $ 180.3 $ 90.7 Cash Flows for the Years Ended December 31, 2024 and 2023 Operating Activities We typically generate operating cash inflows from premiums collected from our insurance products, fees received for services and income received from our investments while outflows consist of policy acquisition costs, benefits paid and operating expenses.
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.
As of December 31, 2024, we had exposure to $168.2 million of reserves below the deductible that we would be responsible for if the clients were to default on their contractual obligation to pay us the deductible.
If the transaction is consummated pursuant to the terms of the Agreement, we expect to record a gain in 2024 above the current carrying value of $46.0 million as of December 31, 2023. We do not anticipate that the gain will impact our capital deployment priorities.
If the transaction is consummated pursuant to the terms of the agreement, we expect to record a gain above the current carrying value of $46.0 million as of December 31, 2024, less estimated costs to sell. We do not anticipate that any such gain will impact our capital deployment priorities.
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.
Net realized losses on investments and fair value changes to equity securities were $75.8 million for Twelve Months 2024 compared to net realized losses on investments and fair value changes to equity securities of $68.7 million for Twelve Months 2023.
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.
As of December 31, 2023, $785.2 million and $1,506.9 million of goodwill was assigned to the Connected Living (including Global Financial Services which was aggregated with Connected Living in 2023) and Global Automotive reporting units, respectively.
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.
The following table provides details of the reinsurance recoverables balance as of December 31, 2024 and 2023: 2024 2023 Ceded future policyholder benefits and expense $ 340.7 $ 339.9 Ceded unearned premium 5,188.5 5,265.2 Ceded claims and benefits payable 1,808.9 971.4 Ceded paid losses 241.4 72.7 Total $ 7,579.5 $ 6,649.2 For additional information regarding our reserves and reinsurance recoverables, see Notes 2, 4, 16 and 17 to the Consolidated Financial Statements included elsewhere in this Report.
Dividends and Repurchases During Twelve Months 2023 and Twelve Months 2022, we made common stock repurchases and paid dividends to our common stockholders of $352.3 million and $717.8 million, respectively. On January 18, 2024, the Board declared a quarterly dividend of $0.72 per common share payable on March 25, 2024 to stockholders of record as of February 5, 2024.
Dividends and Repurchases During Twelve Months 2024 and Twelve Months 2023, we made common stock repurchases and paid dividends to our common stockholders of $455.8 million and $352.3 million, respectively. On January 16, 2025, the Board declared a quarterly dividend of $0.80 per common share payable on March 31, 2025 to stockholders of record as of February 3, 2025.
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 following table illustrates the amount of goodwill carried by operating segment as of the dates indicated: December 31, 2024 2023 Global Lifestyle (1) $ 2,299.3 $ 2,292.1 Global Housing 316.7 316.7 Total $ 2,616.0 $ 2,608.8 (1) As of December 31, 2024, $793.6 million and $1,505.7 million of goodwill was assigned to the Connected Living and Global Automotive reporting units, respectively.
The following table 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.
The following table shows the credit quality of our fixed maturity securities portfolio as of the dates indicated: Fair Value as of Fixed Maturity Securities by Credit Quality December 31, 2024 December 31, 2023 Aaa / Aa / A $ 3,987.5 55.6 % $ 3,958.7 57.3 % Baa 2,699.7 37.6 % 2,564.8 37.1 % Ba 415.7 5.8 % 318.6 4.6 % B and lower 72.2 1.0 % 70.0 1.0 % Total $ 7,175.1 100.0 % $ 6,912.1 100.0 % The following table shows the major categories of net investment income for the periods indicated: Years Ended December 31, 2024 2023 Fixed maturity securities $ 385.9 $ 335.3 Equity securities 13.2 15.2 Commercial mortgage loans on real estate 19.2 17.5 Short-term investments 18.4 12.9 Other investments 21.3 39.1 Cash and cash equivalents 77.0 85.7 Total investment income 535.0 505.7 Investment expenses (16.1) (16.6) Net investment income $ 518.9 $ 489.1 Net investment income increased $29.8 million, or 6%, to $518.9 million for Twelve Months 2024 from $489.1 million for Twelve Months 2023.
The following discussion covers the year ended December 31, 2023 (“Twelve Months 2023”) and the year ended December 31, 2022 (“Twelve Months 2022”). Please see the discussion that follows, for each of these segments, for a more detailed comparative analysis.
In 2024, mainland China operations were sold. The following discussion covers the year ended December 31, 2024 (“Twelve Months 2024”) and the year ended December 31, 2023 (“Twelve Months 2023”). Please see the discussion that follows, for each of these segments, for a more detailed comparative analysis.
Liabilities for future policy benefits and expenses have been included in the commitments and contingencies table. Significant uncertainties relating to these liabilities include mortality, morbidity, expenses, persistency, investment returns, inflation, contract terms and the timing of payments.
See Note 23 to the Consolidated Financial Statements included elsewhere in this Report for more information. 61 Liabilities for future policy benefits and expenses have been included in the commitments and contingencies table. Significant uncertainties relating to these liabilities include mortality, morbidity, expenses, persistency, investment returns, inflation, contract terms and the timing of payments.
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 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.
Also contributing to the change was an increase in purchases of short-term investments due to the timing of working capital needs. Financing Activities Net cash used in financing activities was $403.9 million and $818.4 million for Twelve Months 2023 and Twelve Months 2022, respectively.
Also contributing to the change was a decrease in sales of short-term investments due to the timing of working capital needs. Financing Activities Net cash used in financing activities was $477.5 million and $403.9 million for Twelve Months 2024 and Twelve Months 2023, respectively.
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.
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.
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.
Regulators or rating agencies could become more conservative in their methodology and criteria, increasing capital requirements for our insurance subsidiaries or the enterprise.
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.
Our Homeowners revenue is impacted by changes in the housing market, as well as the voluntary insurance market. In addition, across many of our businesses, we must respond to competitive pressures, including the threat of disruption and competition for talent, which has increased due to labor shortages and wage inflation.
In 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.
In February 2020, we amended the Retirement Health Benefits to terminate such plan benefits to retirees effective December 31, 2024. Due to the Assurant Pension Plan’s current overfunded status, no contributions were made during 2024 and none are expected to be made in 2025.
The increase was primarily driven by higher yields and assets in fixed maturity securities, short term investments and cash and cash equivalents.
The increase was primarily driven by higher yields and assets in fixed maturity securities and short term investments, partially offset by lower income in Other investments primarily driven by lower partnership income.
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.
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.
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.
Based on this assessment, the Company determined that it was more likely than not that the reporting units’ fair values were more than their respective book values and therefore quantitative impairment testing was not necessary for Connected Living, Global Automotive and Global Housing as of October 1, 2024.
Refer to Note 15 to the Consolidated Financial Statements included elsewhere in this Report for further detail. Recent Accounting Pronouncements Please see Note 2 to the Consolidated Financial Statements included elsewhere in this Report.
Refer to Note 14 to the Consolidated Financial Statements included elsewhere in this Report for further detail.
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.
We paid dividends of $0.80 per common share on December 30, 2024 to stockholders of record as of December 9, 2024. This represented a 11% increase to the quarterly dividend of $0.72 per common share paid on September 30, June 24, and March 25, 2024.
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.
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.
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.
For more information on our investments, see Notes 7 and 9 to the Consolidated Financial Statements included elsewhere in this Report. Liquidity and Capital Resources The following section discusses our ability to generate cash flows from each of our subsidiaries, borrow funds at competitive rates and raise new capital to meet our operating and growth needs.
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.
The timing and the amount of future repurchases will depend on various factors, including those listed above. 58 Assurant Subsidiaries The primary sources of funds for our subsidiaries consist of premiums and fees collected, proceeds from the sales and maturity of investments and net investment income. Cash is primarily used to pay insurance claims, agent commissions, operating expenses and taxes.
The 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.
The effect of higher and lower levels of loss frequency and severity on our ultimate costs for claims occurring in 2024 would be as follows: 49 Change in both loss frequency and severity for all Global Lifestyle and Global Housing Ultimate cost of claims occurring in 2024 Change in cost of claims occurring in 2024 3% higher $ 2,765.8 $ 158.8 2% higher $ 2,712.3 $ 105.3 1% higher $ 2,659.4 $ 52.4 Base scenario (1) $ 2,607.0 $ — 1% lower $ 2,555.1 $ (51.9) 2% lower $ 2,503.8 $ (103.2) 3% lower $ 2,452.9 $ (154.1) (1) Represents the sum of the case reserves and incurred but not reported reserves as of December 31, 2024 for Global Lifestyle and Global Housing.
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.
Should the operating results of these reporting units decline substantially compared to projected results, or changes to macroeconomic conditions having a potential impact of substantially reducing future profitability of the reporting units, 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 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.
The table below shows our cash outflows for taxes, interest and dividends for the periods indicated: For the Years Ended December 31, 2024 2023 2022 Income taxes paid $ (38.9) $ 235.4 $ 127.7 Interest paid on debt 107.4 107.4 108.6 Common stock dividends 155.9 152.3 150.2 Total $ 224.4 $ 495.1 $ 386.5 Contractual Obligations and Commitments We have contractual obligations and commitments to third parties as a result of our operations, as detailed in the table below by maturity date as of December 31, 2024: As of December 31, 2024 Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Contractual obligations : Insurance liabilities (1) $ 2,809.1 $ 2,138.9 $ 534.2 $ 80.3 $ 55.7 Debt and related interest 3,592.0 107.3 369.2 467.6 2,647.9 Operating leases 71.7 17.7 28.8 18.1 7.1 Pension obligations and postretirement benefits (2) 459.6 49.7 98.1 96.2 215.6 Commitments: Investment purchases outstanding: Commercial mortgage loans on real estate 6.4 6.4 — — — Capital contributions to non-consolidated VIEs 239.2 239.2 — — — Liability for unrecognized tax benefits 20.4 — 16.9 — 3.5 Total obligations and commitments $ 7,198.4 $ 2,559.2 $ 1,047.2 $ 662.2 $ 2,929.8 (1) Insurance liabilities reflect undiscounted estimated cash payments to be made to policyholders, net of expected future premium cash receipts on in-force policies and excluding fully reinsured runoff operations.
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.
Net unrealized losses on our fixed maturity securities portfolio decreased $30.6 million during Twelve Months 2024, from a $380.3 million unrealized loss at December 31, 2023 to a $349.7 million unrealized loss at December 31, 2024, primarily due to higher yields offset by spreads tightening.
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.
Global Housing net earned premiums, fees and other income increased $314.1 million, or 15%, to $2.46 billion for Twelve Months 2024 from $2.14 billion for Twelve Months 2023, primarily due to Homeowners top-line growth, including growth in policies in-force and higher average premiums within lender-placed, as well as growth across various specialty Homeowners products.
Our assets consist primarily of the capital stock of our subsidiaries. Accordingly, our future cash flows depend upon the availability of dividends and other statutorily permissible payments from our subsidiaries, such as payments under our tax allocation agreement and under management agreements with our subsidiaries.
Accordingly, our future cash flows depend upon the availability of dividends and other statutorily permissible payments from our subsidiaries, such as payments under our tax allocation agreement and under management agreements with our subsidiaries. Our subsidiaries’ ability to pay such dividends and make such other payments is regulated by the states and territories in which our subsidiaries are domiciled.
Policyholder 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.
Selling and underwriting expenses decreased $18.9 million, or 0.4% mainly due to lower commission expenses for extended service contracts in Connected Living and Global Automotive, partially offset by higher commissions from global mobile device protection programs. 54 Global Housing The table below presents information regarding the Global Housing segment’s results of operations for the periods indicated: For the Years Ended December 31, 2024 2023 Revenues: Net earned premiums $ 2,281.0 $ 2,014.5 Fees and other income 176.0 128.4 Net investment income 127.3 109.7 Total revenues 2,584.3 2,252.6 Benefits, losses and expenses: Policyholder benefits 1,010.2 862.0 Selling and underwriting expenses 158.1 137.1 General expenses 744.8 679.3 Total benefits, losses and expenses 1,913.1 1,678.4 Global Housing Adjusted EBITDA $ 671.2 $ 574.2 Impact of reportable catastrophes $ 245.2 $ 111.0 Net earned premiums, fees and other income: Homeowners $ 1,958.9 $ 1,663.4 Renters and Other 498.1 479.5 Total $ 2,457.0 $ 2,142.9 Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 Adjusted EBITDA increased $97.0 million, or 17%, to $671.2 million for Twelve Months 2024 from $574.2 million for Twelve Months 2023, mainly due to continued growth from higher policies in-force, average insured values and premium rates within Homeowners and $52.6 million of favorable year-over-year net impact to non-catastrophe prior year reserve development.
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.
Recent Accounting Pronouncements Please see Note 2 to the Consolidated Financial Statements included elsewhere in this Report. 51 Results of Operations Assurant Consolidated The table below presents information regarding our consolidated results of operations: For the Years Ended December 31, 2024 2023 Revenues: Net earned premiums $ 9,795.8 $ 9,388.0 Fees and other income 1,638.6 1,323.2 Net investment income 518.9 489.1 Net realized losses on investments and fair value changes to equity securities (75.8) (68.7) Total revenues 11,877.5 11,131.6 Benefits, losses and expenses: Policyholder benefits 2,766.5 2,521.8 Underwriting, selling, general and administrative expenses 8,076.7 7,695.1 Interest expense 107.0 108.0 Loss on extinguishment of debt — (0.1) Total benefits, losses and expenses 10,950.2 10,324.8 Income before provision for income taxes 927.3 806.8 Provision for income taxes 167.1 164.3 Net income $ 760.2 $ 642.5 Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 Net Income Consolidated net income increased $117.7 million, or 18%, to $760.2 million for Twelve Months 2024 from $642.5 million for Twelve Months 2023, primarily driven by higher earnings in Global Housing, a $31.0 million favorable change in after-tax foreign exchange related gains (losses), a $32.2 million after-tax decline in losses related to our non-core operations and a $22.9 million reduction in after-tax restructuring costs related to our previously announced restructuring plan.
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.
Investing Activities Net cash used in investing activities was $657.8 million and $637.7 million for Twelve Months 2024 and Twelve Months 2023, respectively. The change in net investing cash flows was primarily driven by the increased investment of net cash 60 provided by operating activities and reinvestment of proceeds from the sale of fixed maturity securities during the period.
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.
Total benefits, losses and expenses increased $19.2 million, or 15%, to $149.8 million for Twelve Months 2024 from $130.6 million for Twelve Months 2023, primarily due to an increase in general expenses of $19.3 million, or 15%, primarily driven by higher employee-related expenses and higher third-party consulting expenses to support enterprise growth initiatives. 56 Investments We had total investments of $8.54 billion and $8.22 billion as of December 31, 2024 and 2023, respectively.
The entry into a definitive agreement and the consummation of the transaction are subject to significant uncertainty. There can be no assurance that a definitive agreement will be executed or that any transaction will be approved or consummated. 55 Regulatory Requirements Assurant, Inc. is a holding company and, as such, has limited direct operations of its own.
There can be no assurance that the transaction will be consummated. 57 Regulatory Requirements Assurant, Inc. is a holding company and, as such, has limited direct operations of its own. Our assets consist primarily of the capital stock of our subsidiaries.
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.
Global Lifestyle net earned premiums, fees and other income increased $405.9 million, or 5%, to $8.97 billion for the Twelve Months 2024 from $8.56 billion for Twelve Months 2023, primarily due to contributions from newly launched trade-in programs and device protection programs.
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.
General expenses increased $65.5 million, or 10%, primarily due to higher costs associated with growth and the reclassification described above. 55 Corporate and Other The table below presents information regarding the Corporate and Other segment’s results of operations for the periods indicated: For the Years Ended December 31, 2024 2023 Revenues: Net earned premiums $ — $ — Fees and other income 0.4 0.2 Net investment income 27.2 21.4 Total revenues 27.6 21.6 Benefits, losses and expenses Policyholder benefits — 0.1 General expenses 149.8 130.5 Total benefits, losses and expenses 149.8 130.6 Corporate and Other Adjusted EBITDA $ (122.2) $ (109.0) Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023 Adjusted EBITDA was $(122.2) million for Twelve Months 2024 compared to $(109.0) million for Twelve Months 2023.
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.
During Twelve Months 2024, we repurchased 1,548,520 shares of our outstanding common stock at a cost of $299.9 million, exclusive of commissions. In November 2023, the Board authorized an additional share repurchase program for up to $600.0 million of our outstanding common stock. As of December 31, 2024, $374.5 million aggregate cost at purchase remained unused under the repurchase authorization.
In 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”).
Senior and Subordinated Notes The following table shows the principal amount and carrying value of our outstanding debt, less unamortized discount and issuance costs as applicable, as of December 31, 2024 and 2023: December 31, 2024 December 31, 2023 Principal Amount Carrying Value Principal Amount Carrying Value 6.10% Senior Notes due February 2026 $ 175.0 $ 174.3 $ 175.0 $ 173.7 4.90% Senior Notes due March 2028 300.0 298.6 300.0 298.2 3.70% Senior Notes due February 2030 350.0 348.2 350.0 347.9 2.65% Senior Notes due January 2032 350.0 347.3 350.0 347.0 6.75% Senior Notes due February 2034 275.0 272.8 275.0 272.7 7.00% Fixed-to-Floating Rate Subordinated Notes due March 2048 400.0 397.7 400.0 397.0 5.25% Subordinated Notes due January 2061 250.0 244.2 250.0 244.1 Total Debt $ 2,083.1 $ 2,080.6 In the next five years, we have two debt maturities in February 2026 and March 2028 when the 2026 Senior Notes and the 2028 Senior Notes, respectively, become due and payable.
Net investment income increased $93.9 million, or 37%, primarily due to higher yields on cash, short-term investments and fixed maturity securities.
Net investment income increased $9.1 million, or 3%, primarily due to higher yields on cash, short-term investments and fixed maturity securities. Total benefits, losses and expenses increased $433.9 million, or 5%, to $8.55 billion for Twelve Months 2024 from $8.12 billion for Twelve Months 2023.
Global Housing Adjusted EBITDA increased $328.2 million, or 133%, to $574.2 million for Twelve Months 2023 from $246.0 million for Twelve Months 2022, primarily driven by the factors noted below, including $60.4 million of lower pre-tax reportable catastrophes.
Global Housing Adjusted EBITDA increased $97.0 million, or 17%, to $671.2 million for Twelve Months 2024 from $574.2 million for Twelve Months 2023, primarily driven by growth in Homeowners, partially offset by $134.2 million of higher pre-tax reportable catastrophes.
The decline was partially offset by higher net investment income across Global Lifestyle and stronger mobile device protection results in North America. Total revenues increased $593.4 million, or 7%, to $8.91 billion for Twelve Months 2023 from $8.32 billion for Twelve Months 2022.
The decrease in Adjusted EBITDA was partially offset by higher net investment income across Global Lifestyle, as well as improved contributions from our financial services business and improved results within extended service contracts. Total revenues increased $415.0 million, or 5%, to $9.32 billion for Twelve Months 2024 from $8.91 billion for Twelve Months 2023.
Our comparative analysis of Twelve Months 2022 and the year ended December 31, 2021 is included under the heading “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 filed with the SEC on February 17, 2023.
Our comparative analysis of Twelve Months 2023 and the year ended December 31, 2022 is included under the heading “Item 7.
Policyholder benefits decreased $22.1 million, or 2%, primarily due to lower reportable catastrophe losses and favorable non-catastrophe prior year reserve development, partially offset by higher current year non-catastrophe loss experience from business growth and higher severity.
Total benefits, losses and expenses increased $234.7 million, or 14%, to $1.91 billion for Twelve Months 2024 from $1.68 billion for Twelve Months 2023. Policyholder benefits increased $148.2 million, or 17%, primarily due to higher reportable catastrophe losses and non-catastrophe losses from exposure growth, partially offset by the favorable year-over-year non-catastrophe prior year reserve development.
The best estimate is generally selected from a blend of the different methods. The IBNR associated with the best estimate is then allocated to accident year based on a weighting of the underlying actuarial methods.
The best estimate is generally selected from a blend of the different methods.
Net earned premiums increased $262.9 million, or 15%, primarily driven by Homeowners from higher lender-placed average insured values and policies in force, as well as higher premium rates primarily to address increased claims severity, and the absence of $32.8 million of unfavorable catastrophe reinstatement premiums from Twelve Months 2022 compared to a favorable adjustment of $5.1 million in Twelve Months 2023, partially offset by exits from certain international markets.
Net earned premiums increased $266.5 million, or 13%, primarily driven by Homeowners from higher lender-placed policies in-force, average insured values, higher premium rates and growth across various specialty products, partially offset by the non-run rate adjustment described above and exits from certain international markets.
Corporate and Other Adjusted EBITDA was $(109.0) million for Twelve Months 2023 compared to $(99.2) million for Twelve Months 2022, primarily driven by lower investment income and higher employee-related expenses.
Corporate and Other Adjusted EBITDA was $(122.2) million for Twelve Months 2024 compared to $(109.0) million for Twelve Months 2023, primarily driven by higher third-party and employee-related expenses. In addition, the California Wildfires began in January 2025, causing significant damage throughout the Los Angeles metropolitan area and surrounding regions.
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.
Total revenues increased $6.0 million, or 28%, to $27.6 million for Twelve Months 2024 from $21.6 million for Twelve Months 2023, primarily driven by an increase in net investment income of $5.8 million, or 27%, mostly due to higher yields and asset balances for fixed maturity securities.
Net investment income increased $33.9 million, or 45%, primarily due to higher yields on fixed maturity securities, cash and short-term investments, partially offset by lower gains from the sales of real estate joint venture partnerships.
Fees and other income increased $47.6 million, or 37%, primarily driven by the reclassification of certain service fees from an expense account. Net investment income increased $17.6 million, or 16%, primarily due to higher yields and asset balances on fixed maturity securities, cash and cash equivalents and short-term investments.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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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.
Biggest changeDecember 31, 2024 December 31, 2023 2024 vs. 2023 Value of net assets (liabilities) Exchange rate per USD Value of net assets (liabilities) Exchange rate per USD % Change in exchange rate per USD British pound sterling (GBP) $ 323.3 1.2684 $ 321.5 1.2649 0.3% Canadian dollar (CAD) 239.3 0.6955 233.9 0.7567 (8.1)% Euro (EUR) 146.8 1.0514 170.7 1.0924 (3.8)% Brazilian real (BRL) 70.6 0.1630 87.3 0.2040 (20.1)% Australian dollar (AUD) 64.7 0.6372 60.5 0.6707 (5.0)% Mexican peso (MXN) 71.0 0.0497 85.4 0.0583 (14.8)% Japanese yen (JPY) 32.4 0.0065 28.6 0.0070 (7.1)% New Zealand dollar (NZD) 15.2 0.5783 12.8 0.6213 (6.9)% Chilean peso (CLP) 12.1 0.0010 17.6 0.0011 (9.1)% Argentine peso (ARS) 13.7 0.0010 8.6 0.0012 (16.7)% Indian rupee (INR) 9.4 0.0118 9.0 0.0120 (1.7)% Other (various currencies) (5.8) (2.6) Value of net assets denominated in foreign currencies $ 992.7 $ 1,033.3 Net assets $ 5,106.7 $ 4,809.5 As a percentage of total net assets 19.4 % 21.5 % Pre-tax decrease in fair value of our investments in foreign subsidiaries from a hypothetical 10 percent strengthening of the USD $ (109.6) $ (116.1) Pre-tax increase in fair value of our investments in foreign subsidiaries from a hypothetical 10 percent weakening of the USD $ 109.6 $ 116.1 Credit Risk Credit risk is the possibility that counterparties may not be able to meet payment obligations when they become due.
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.
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.
Foreign Exchange Risk We are exposed to foreign exchange risk arising from our investments in foreign subsidiaries. Foreign exchange risk is the possibility that changes in exchange rates produce an adverse effect on earnings and equity when measured in domestic currency.
Foreign Exchange Risk We are exposed to foreign exchange risk arising from our investments in foreign subsidiaries. Foreign exchange risk is the possibility that changes in exchange rates produce an adverse effect on earnings and equity when measured in domestic 62 currency.
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.
Dollar and other foreign currencies may materially and adversely affect our results of operations. ” The following table summarizes the net assets (liabilities) denominated in foreign currencies as of December 31, 2024 and 2023 and the sensitivity to a hypothetical strengthening of the U.S. dollar.
For additional information, see Note 19 to the Consolidated Financial Statements included elsewhere in this Report and “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources”.
For additional information, see Note 18 to the Consolidated Financial Statements included elsewhere in this Report and “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources”.
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.
There were no other significant changes in our primary market risk exposures or in how those exposures were managed for the year ended December 31, 2024, compared to the year ended December 31, 2023.
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.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk The following is a discussion of our primary market risk exposures and management of such exposures as of December 31, 2024.
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).
For more information, see “Item 1A – Risk Factors – Financial Risks – Actual results may differ materially from the analytical models we use to assist in our decision-making in key areas such as pricing, catastrophe risks, reserving and capital management. ” Our sensitivity analysis model produces a loss in fair value in the fixed maturity portfolio of (i) $173.2 million and $170.0 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates (including impacts of changes in credit spreads), and (ii) $340.0 million and $333.2 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 100 basis point parallel increase in interest rates (including impacts of changes in credit spreads).
For additional information, see Notes 8 and 10 to the Consolidated Financial Statements included elsewhere in this Report and “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Investments”.
For additional information, see Notes 7 and 9 to the Consolidated Financial Statements included elsewhere in this Report and “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Investments”.
For additional information, refer to “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Investments” and Notes 5 and 8 to the Consolidated Financial Statements included elsewhere in this Report.
For additional information, refer to “Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Investments” and Notes 4 and 7 to the Consolidated Financial Statements included elsewhere in this Report. 63
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 sensitivity analysis model produces a loss in fair value of our debt obligations of (i) $48.4 million and $54.0 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 50 basis point parallel increase in interest rates, and (ii) $95.3 million and $106.3 million as of December 31, 2024 and 2023, respectively, based on a hypothetical and instantaneous 100 basis point parallel increase in interest rates.
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.
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.
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.
The carrying value of our investment portfolio at December 31, 2024 and 2023 was $8.54 billion and $8.22 billion, respectively, of which 84% was invested in fixed maturity securities.
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.
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.
Added
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.

Other AIZN 10-K year-over-year comparisons