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 Assurant Reports Second Quarter 2017 Financial Results
   Tuesday, August 01, 2017 4:05:11 PM ET

--? $90.5 million of net operating income, $1.63 per diluted share, excluding catastrophe losses(1, 2)

--? 12.7 percent annualized GAAP ROE year-to-date, 10.0 percent annualized operating ROE, excluding AOCI and catastrophe losses(3 )year-to-date

--? $142 million returned to shareholders in share repurchases and dividends in 2Q 2017

--? $625 million in corporate capital at quarter end

Assurant, Inc. (AIZ ), a premier global provider of risk management solutions, today reported results for second quarter ended June 30, 2017.

"Overall results in the second quarter were in line with our expectations, despite higher non-catastrophe claims," said Assurant President and Chief Executive Officer Alan Colberg.

"We’ve made continued progress toward achieving our 2017 commitments, including capital deployment," he continued. "And we remain confident that our ongoing transformation is establishing a firm foundation for profitable growth in 2018 and beyond."

Reconciliation of Net Operating Income to GAAP Net Income
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)                                                                                       2Q                                                         2Q                                                      6 Months                                               6 Months
(in millions, net of tax)                                                                        2017                                                       2016                                                       2017                                                   2016
-------------------------------------------------------------------- -------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- ------------------------------------------------
  Global Housing                                                                                             $           56.2                                                              $           56.9                                                              $          118.1                                                              $ 133.3
  Global Lifestyle                                                                                                       40.2                                                                          50.1                                                                          92.6                                                                 91.5
  Global Preneed                                                                                                         12.8                                                                          11.3                                                                          22.7                                                                 17.0
  Corporate and other                                                                                                   (10.6 )                                                                       (19.4 )                                                                       (20.7 )                                                              (33.3 )
  Interest expense                                                                                    (8.1 )                                                     (9.9 )                                                    (16.3 )                                           (19.3 )
                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----- --------------------
   Net operating income                                                                               90.5                                    89.0                                   196.4                          189.2  
                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----- --------------------
Adjustments:
  Assurant Health runoff operations                                                                                       3.5                                                                          (5.4 )                                                                        11.4                                                                (32.6 )
  Assurant Employee Benefits                                                                                   --                                                                --                                                                --                                                                 10.5
  Net realized gains on investments                                                                                       8.6                                                                          14.0                                                                          10.8                                                                119.1
  Amortization of deferred gains and gains on disposal of businesses                                                     15.2                                                                          81.8                                                                          39.3                                                                112.7
  Other adjustments                                                                                    2.4                                   (10.1 )                                                      6.1                           (9.2 )
                                                                                          -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ----- --------------------
   GAAP net income                                                                                           $          120.2                                           $          169.3                                           $          264.0                                           $ 389.7  
                                                                                          ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ===== ====================

Note: Beginning with first quarter 2017, all amounts (excluding share and per share amounts) are presented in millions. Prior period amounts have been updated to reflect the current presentation and may result in rounding differences.

Additional financial information, including a schedule of disclosed items that affected Assurant’s results by business for the last eight quarters, appears on page 19 of the company’s Financial Supplement and is located in the Investor Relations section of www.assurant.com.

Second Quarter 2017 Consolidated Results

-- Net income was $120.2 million, or $2.16 per diluted share, compared to second quarter 2016 net income of $169.3 million, or $2.70 per diluted share. The decline primarily reflects a lower amortization of deferred gains from the sale of Assurant Employee Benefits, partially offset by improvements in Health and other items.

-- Net operating income(4) increased to $90.5 million, or $1.63 per diluted share, compared to second quarter 2016 net operating income of $89.0 million, or $1.42 per diluted share. Results benefitted primarily from lower Corporate and other expenses, partially offset by lower contributions from Global Lifestyle driven by the absence of an $18 million one-time tax benefit in the year-ago quarter. Assurant incurred no reportable catastrophe losses in second quarter 2017, compared to $16 million of reportable catastrophe losses in second quarter 2016. Excluding catastrophe losses, net operating income for second quarter 2017 totaled $90.5 million, compared to $105 million in second quarter 2016. The decrease was attributable to the tax benefit recorded in Global Lifestyle in the prior-year quarter.

-- Net earned premiums, fees and other income from the Global Housing, Global Lifestyle and Global Preneed segments totaled $1.43 billion compared to $1.52 billion in second quarter 2016, driven by a change in program structure implemented in fourth quarter 2016 for a large service contract client in Global Lifestyle. Absent this change, revenue increased, reflecting growth from all major business lines in Global Lifestyle as well as from multi-family housing in Global Housing, partially offset by lower lender-placed premiums.

Reportable Segments

Global Housing                                                     
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(in millions)                                                      2Q17                                        2Q16                 % Change                                      6M17                                        6M16                 % Change
Net operating income                                                        $                 56.2                                         $                 56.9                                      (1)%                                         $                118.1                                         $                133.3                                     (11)%
Net earned premiums, fees and other                      $                550.2                      $                561.1                   (2)%                      $              1,081.9                      $              1,138.5                   (5)%
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

-- Net operating income was generally level with second quarter 2016, reflecting $16 million of lower reportable catastrophes year-over-year. Excluding catastrophe losses, second quarter 2017 results declined, primarily due to ongoing lender-placed insurance normalization and higher non-catastrophe losses, including claims that did not reach Assurant’s reportable catastrophe threshold.

-- Net earned premiums, fees and other income decreased in second quarter 2017, primarily due to expected lower placement rates in lender-placed insurance and reduced demand for originations and field services in mortgage solutions. Growth in multi-family housing and from new lender-placed clients partially offset the decline.

-- Combined ratio for risk-based businesses(a) was 87.0 percent in the second quarter 2017 compared to 87.3 percent in prior-year quarter. This improvement resulted from lower reportable catastrophe losses, partially offset by higher frequency and severity of non-catastrophe claims, as well as expenses to support new lender-placed clients.

-- Pre-tax margin for fee-based, capital-light businesses(b) was 11.7 percent, up from 11.2 percent from the second quarter of 2016. The improvement resulted from growth in multi-family housing, largely through expansion within our affinity channels. This increase was partially offset by ongoing market weakness and lower client volumes in mortgage solutions. Actions taken to lower expenses in these businesses helped mitigate declines. (a) Combined ratio for the Global Housing risk-based businesses is equal to total policyholder benefits, losses and expenses, including reportable catastrophe losses, divided by net earned premiums and fees and other income, for lender-placed and manufactured housing and other businesses. (b) Pre-tax margin for the Global Housing fee-based, capital-light businesses is equal to income before provision for income taxes divided by total net earned premiums, fees and other income, for multi-family housing and mortgage solutions businesses.

Global Lifestyle                                                   
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(in millions)                                                      2Q17                                        2Q16                 % Change                                      6M17                                        6M16                 % Change
Net operating income                                                        $                 40.2                                         $                 50.1                                     (20)%                                         $                 92.6                                         $                 91.5                                       1 %
Net earned premiums, fees and other                      $                836.0                      $                914.9                   (9)%                      $              1,640.9                      $              1,849.2                  (11)%
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

-- Net operating income decreased in second quarter 2017 due to an $18 million one-time tax benefit in the prior-year quarter. Excluding the tax benefit, second quarter 2017 net operating income increased, primarily due to improved profitability in Connected Living, reflecting lower expenses and a one-time client adjustment in extended service contracts, as well as modest growth in mobile. Less favorable loss experience in vehicle protection partially offset the increase.

-- Net earned premiums, fees and other income decreased compared to the prior-year period entirely due to a change in program structure in fourth quarter 2016 for a large service contract client in Connected Living. Excluding this $138 million reduction, second quarter 2017 revenue increased across all major lines of business, primarily in mobile and extended service contracts. Foreign exchange volatility partially offset the increase.

-- Combined ratio for risk-based businesses(a) increased to 97.0 percent from 95.8 percent in second quarter 2016, driven largely by less favorable experience in vehicle protection.

-- Pre-tax margin for fee-based, capital-light businesses(b) was 6.4 percent, up from 3.2 percent in second quarter 2016. The increase was driven in part by the change in client program structure. Higher contributions from Connected Living and ongoing expense management efforts also contributed to the improvement. (a) Combined ratio for the Global Lifestyle risk-based businesses is equal to total policyholder benefits, losses and expenses, divided by net earned premiums and fees and other income, for vehicle protection, credit and other businesses. (b) Pre-tax margin for the Global Lifestyle fee-based, capital-light businesses is equal to income before provision for income taxes divided by total net earned premiums, fees and other income, for Connected Living, including mobile, extended service contracts and assistance services.

Global Preneed                                                     
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(in millions)                                                      2Q17                                        2Q16                 % Change                                      6M17                                        6M16                 % Change
Net operating income                                                        $                 12.8                                         $                 11.3                                      13 %                                         $                 22.7                                         $                 17.0                                      34 %
Net earned premiums, fees and other                      $                 46.3                      $                 43.3                    7 %                      $                 90.5                      $                 86.0                    5 %
----------------------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

-- Net operating income increased primarily due to higher fee and investment income, partially offset by higher expenses.

-- Net earned premiums, fees and other income was up, driven mainly by increased volume in Canada.

-- Face sales totaled $239.0 million, down from $245.6 million in second quarter 2016, reflecting lower volumes of final need policies.

Corporate & Other                                     
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
(in millions)                                         2Q17                                        2Q16                 % Change                                      6M17                                        6M16                 % Change
Net operating loss (5)                      $               (10.6)                      $               (19.4)                  (45)%                      $               (20.7)                      $               (33.3)                  (38)%
---------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------

-- Net operating loss(5) declined compared to second quarter 2016 primarily due to lower taxes and fees associated with Assurant Employee Benefits, which was sold in March 2016, as well as reduced corporate expenses in second quarter 2017.

Capital Position

-- Corporate capital approximated $625 million as of June 30, 2017. Deployable capital totaled approximately $375 million, net of the company’s $250 million risk buffer. Dividends from the businesses paid to the holding company in second quarter 2017 totaled $160 million. This included $71 million from Assurant Employee Benefits and Assurant Health and $89 million from Global Housing, Global Lifestyle and Global Preneed operating segments.

-- Share repurchases and dividends totaled $142 million in second quarter 2017. Dividends to shareholders totaled $30 million, and Assurant repurchased approximately 1.1 million shares of common stock for $112 million. From July 1 through July 28, 2017, the company repurchased an additional 235,000 shares for approximately $25 million, with $442 million remaining under the current repurchase authorization.

Company Outlook

Based on current market conditions, for full-year 2017 Assurant now expects:

-- Assurant net operating income, excluding reportable catastrophe losses, to be roughly level with 2016 results, excluding catastrophe losses. Profitable growth primarily in fee-based, capital-light offerings and a lower net operating loss at Corporate to be offset by declines in lender-placed insurance and legacy businesses.

-- Assurant operating earnings per diluted share, excluding catastrophe losses, to grow double-digits from 2016 primarily due to share repurchase activity.

-- Global Housing net earned premiums and net operating income, excluding reportable catastrophe losses, to decrease from 2016 as a result of additional declines in lender-placed insurance reflecting lower placement rates anticipated for the second half of 2017, as well as reduced contributions from mortgage solutions. Ongoing expense management initiatives within Global Housing and growth in multi-family housing to partially mitigate declines.

-- Global Lifestyle to increase net operating income as a result of improved performance in Connected Living, driven primarily by growth in mobile, as well as higher contributions from vehicle protection and from expense efficiencies. Declines in legacy credit insurance and retail clients to continue. Revenue expected to decrease, largely due to a change in program structure for a large service contract client. Under the new structure, the overall economics of the program are maintained with no impact to profitability, however net earned premiums will be lower by approximately $500 million compared to 2016 with a commensurate reduction in expenses. Excluding this, net earned premiums and fee income to increase from growth in Connected Living and vehicle protection globally. Results to be impacted by foreign exchange.

-- Global Preneed fee income and earnings to increase due to sales growth across North America from our alignment with market leaders and operational efficiencies.

-- Corporate & Other(6) full-year net operating loss to be approximately $60 million, compared to $71 million in 2016, primarily reflecting lower tax and employee-related costs as well as reduced corporate expenditures.

-- Capital to be deployed through a combination of share repurchases, common stock dividends, and reinvestments and acquisitions in the business, subject to market conditions and other factors. Business segment dividends from Global Housing, Global Lifestyle and Global Preneed to approximate segment net operating income including catastrophe losses, subject to the growth of the businesses, rating agency and regulatory capital requirements. In addition to the $86 million received year-to-date, approximately $15 million in dividends expected from Assurant Health and Assurant Employee Benefits, subject to regulatory approval.

Earnings Conference Call

The second quarter 2017 earnings conference call and webcast will be held Wednesday, Aug. 2, 2017 at 8:00 a.m. ET. The live and archived webcast, along with supplemental information, will be available in the Investor Relations section of www.assurant.com.

About Assurant

Assurant (AIZ ) is a global leader in risk management solutions, helping protect where people live and the goods they buy. Millions of consumers count on Assurant’s innovative products, services and support for major purchases like homes, cars, appliances, mobile devices and funerals. Assurant partners with leading companies that make, sell or finance those purchases to take great care of their customers and help their business grow. A member of the Fortune 500, Assurant has a market presence in 16 countries worldwide. As of June 30, 2017, the company had $30 billion in assets and $6 billion in annualized revenue. Learn more at assurant.com or follow us on Twitter @AssurantNews.

Safe Harbor Statement

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

(i)        loss of significant client relationships or business, distribution
                              sources or contracts and reliance on a few clients;
(ii)                          general global economic, financial market and political conditions
                              and conditions in the markets in which we operate, including
                              uncertainty surrounding the new administration;
(iii)                         failure to adequately predict or manage claims and other costs;
(iv)                          inadequacy of reserves established for future claims;
(v)                           losses due to natural or man-made catastrophes;
(vi)                          a decline in our credit or financial strength ratings;
(vii)                         risks related to our international operations, including
                              fluctuations in exchange rates;
(viii)                        deterioration in our market capitalization compared to its book
                              value that could result in an impairment of goodwill;
(ix)                          failure to maintain effective internal control over financial
                              reporting;
(x)                           failure to effectively maintain and modernize our information
                              technology systems;
(xi)                          data breaches compromising client information and privacy;
(xii)                         cyber security threats and cyber-attacks;
(xiii)                        significant competitive pressures in our businesses;
(xiv)                         inability to execute strategic plans related to acquisitions,
                              dispositions or new ventures or integrate them effectively;
(xv)                          failure to develop or maintain distribution sources or attract and
                              retain sales representatives;
(xvi)                         diminished value of invested assets in our investment portfolio (due
                              to, among other things, volatility in financial markets; the global
                              economic slowdown; credit, currency and liquidity risk; other than
                              temporary impairments and increases in interest rates);
(xvii)                        unfavorable outcomes in litigation and/or regulatory investigations
                              that could negatively affect our results, business and reputation;
(xviii)                       current or new laws and regulations that could increase our costs
                              and decrease our revenue;
(xix)                         uncertain tax positions, changes in tax laws and unexpected tax
                              liabilities;
(xx)                          risks related to outsourcing activities;
(xxi)                         decline in the value of mobile devices in our inventory or subject
                              to guaranteed buyback;
(xxii)                        employee misconduct;
(xxiii)                       unavailability, inadequacy and unaffordable pricing of reinsurance
                              coverage;
(xxiv)                        insolvency of third parties to whom we have sold or may sell
                              businesses through reinsurance or modified co-insurance;
(xxv)                         inability of reinsurers to meet their obligations;
(xxvi)                        credit risk of some of our agents;
(xxvii)                       inability of our subsidiaries to pay sufficient dividends; and
(xxviii)                      failure to successfully execute our transformation, retain and
                              hire qualified personnel including key executives and provide for
                              succession of key executives.

For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to our Annual Report on Form 10-K, as filed with the SEC.

Non-GAAP Financial Measures

Assurant uses the following non-GAAP financial measures to analyze the company’s operating performance for the periods presented in this news release. Because Assurant’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing Assurant’s non-GAAP financial measures to those of other companies.

(1)   Assurant uses net operating income (as defined below), excluding
                         reportable catastrophe losses, as an important measure of the
                         company’s operating performance. The company believes net operating
                         income, excluding reportable catastrophe losses, provides investors
                         a valuable measure of the performance of the company’s ongoing
                         business because it excludes the effect of reportable catastrophe
                         losses, which can be volatile. The comparable GAAP measure is net
                         income.
                                                                                                                                                   
------------------------------------------ -------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- -------------------------------------------------
(UNAUDITED)                                                             2Q                                                         2Q                                                      6 Months                                               6 Months
(in millions)                                                          2017                                                       2016                                                       2017                                                   2016
------------------------------------------ -------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- -------------------------------------------------
                                                                                   $           56.2                                                              $           72.9                                                              $          118.7                                                              $  158.6
  Global Housing, excluding catastrophe
  losses
  Global Lifestyle                                                                             40.2                                                                          50.1                                                                          92.6                                                                  91.5
  Global Preneed                                                                               12.8                                                                          11.3                                                                          22.7                                                                  17.0
  Corporate and other                                                                         (10.6 )                                                                       (19.4 )                                                                       (20.7 )                                                               (33.3 )
  Interest expense                                                          (8.1 )                                                     (9.9 )                                                    (16.3 )                                            (19.3 )
                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------
    Net operating income                                                    90.5                                   105.0                                   197.0                           214.5  
                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------
Adjustments, pre-tax:
  Assurant Health runoff operations                                                             4.3                                                                          (7.7 )                                                                        16.9                                                                 (42.0 )
  Assurant Employee Benefits                                                         --                                                                --                                                                --                                                                  16.8
  Net realized gains on investments                                                            13.2                                                                          21.6                                                                          16.6                                                                 183.3
  Reportable catastrophe losses                                                      --                                                                         (24.6 )                                                                        (0.9 )                                                               (39.0 )
                                                                                               23.4                                                                         125.8                                                                          60.4                                                                 173.4
  Amortization of deferred gains and gains
  on disposal of
  businesses
  Other adjustments                                                                             3.9                                                                         (15.6 )                                                                         9.7                                                                 (14.2 )
  Provision for income taxes                                               (15.1 )                                                    (35.2 )                                                    (35.7 )                                           (103.1 )
                                                                -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------
    GAAP net income                                                                $          120.2                                           $          169.3                                           $          264.0                                           $  389.7  
                                                                ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================
(2)   Assurant uses net operating income (as defined below) per diluted
                         share, excluding reportable catastrophe losses, as an important
                         measure of the company’s stockholder value. The company believes
                         this metric provides investors a valuable measure of stockholder
                         value because it excludes the effect of reportable catastrophe
                         losses, which can be volatile. The comparable GAAP measure is net
                         income per diluted share, defined as net income divided by weighted
                         average diluted shares outstanding.
                                                                                                                                                      
--------------------------------------------- -------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- -------------------------------------------------
(UNAUDITED)                                                                2Q                                                         2Q                                                      6 Months                                               6 Months
                                                       2017                                                       2016                                                       2017                                                   2016
--------------------------------------------- -------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- -------------------------------------------------
Net operating income, excluding catastrophe                                           $           1.63                                                              $           1.67                                                              $           3.51                                                              $   3.34
losses,
per diluted share
Adjustments, pre-tax:
  Assurant Health runoff operations                                                               0.08                                                                         (0.12 )                                                                        0.30                                                                 (0.65 )
  Assurant Employee Benefits                                                            --                                                                --                                                                --                                                                  0.26
  Net realized gains on investments                                                               0.24                                                                          0.34                                                                          0.30                                                                  2.85
                                                                                                  0.42                                                                          2.01                                                                          1.09                                                                  2.70
  Amortization of deferred gains and gains on
  disposal of
  businesses
  Reportable catastrophe losses                                                         --                                                                         (0.39 )                                                                       (0.02 )                                                               (0.61 )
  Other adjustments                                                                               0.07                                                                         (0.25 )                                                                        0.17                                                                 (0.22 )
  Provision for income taxes                                                  (0.28 )                                                    (0.56 )                                                    (0.64 )                                            (1.61 )
                                                                   -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------
Net income per diluted share                                                          $           2.16                                           $           2.70                                           $           4.71                                           $   6.06  
                                                                   ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================
(3)   Assurant uses operating return on equity ("Operating ROE"),
                         excluding accumulated other comprehensive income ("AOCI") and
                         reportable catastrophe losses, as an important measure of the
                         company’s operating performance. Operating ROE, excluding AOCI and
                         reportable catastrophe losses, equals net operating income (as
                         defined below) for the periods presented divided by average
                         stockholders’ equity, excluding AOCI and reportable catastrophe
                         losses, for the year-to-date period. The company believes Operating
                         ROE excluding AOCI and reportable catastrophe losses provides
                         investors a valuable measure of the performance of the company’s
                         ongoing business, because it excludes the effect of Assurant Health
                         runoff operations, the divested Assurant Employee Benefits business,
                         which was sold on March 1, 2016, and reportable catastrophe losses,
                         which can be volatile. The calculation also excludes net realized
                         gains (losses) on investments, amortization of deferred gains and
                         gains on disposal of businesses and those events that are highly
                         variable and do not represent the ongoing operations of the company.
                         The comparable GAAP measure is GAAP return on equity ("GAAP ROE"),
                         defined as net income, for the period presented, divided by average
                         stockholders’ equity for the year-to-date period.
                                               
-------------------------------------------------- -------------------- ----------------------------------------- ----------------------------------------- ----------------------------------------- ---------------------
(UNAUDITED)                                                   2Q                     2Q                  6 Months               6 Months
                                          2017                   2016                   2017                   2016
-------------------------------------------------- -------------------- ----------------------------------------- ----------------------------------------- ----------------------------------------- ---------------------
Annual operating return on average equity,                                         9.2 %                                    10.9 %                                    10.0 %                                    11.9 %
excluding
AOCI and reportable catastrophe losses
  Assurant Health runoff operations                                                0.4 %                                    (0.6 )%                                    0.6 %                                    (1.8 )%
  Assurant Employee Benefits                                            -- %                          -- %                          -- %                                     0.6 %
  Net realized gains on investments                                                0.9 %                                     1.5 %                                     0.6 %                                     6.6 %
                                                                                   1.5 %                                     8.5 %                                     2.0 %                                     6.3 %
  Amortization of deferred gains and gains on
  disposal of
  businesses
  Reportable catastrophe losses                                         -- %                                    (1.7 )%                         -- %                                    (1.4 )%
  Other adjustments:
    Gain related to benefit plan activity                                          0.4 %                          -- %                                     0.5 %                                     1.0 %
    Amount related to the sale of AEB                                   -- %                          -- %                          -- %                                    (1.0 )%
    Post-close cont. liab. on previous disposition                                (0.1 )%                         -- %                                    (0.1 )%                         -- %
    Intangible asset impairment                                         -- %                                    (1.1 )%                         -- %                                    (0.5 )%
    Change in derivative investment                                               (0.1 )%                                    0.1 %                                    (0.1 )%                         -- %
  Change due to effect of including AOCI                                          (0.7 )%                                   (2.8 )%                                   (0.8 )%                                   (4.6 )%
                                                                        -------------- -----                      -------------- -----                      -------------- -----                      -------------- -----
Annual GAAP return on average equity                                              11.5 %                                    14.8 %                                    12.7 %                                    17.1 %
                                                                        ============== =====                      ============== =====                      ============== =====                      ============== =====
(4)  Assurant uses net operating income as an important measure of the
     company’s operating performance. Net operating income equals net
     income excluding Assurant Health runoff operations, Assurant
     Employee Benefits, net realized gains (losses) on investments,
     amortization of deferred gains and gains on disposal of businesses
     and other highly variable items. The company believes net operating
     income provides a valuable measure of the performance of the
     company’s ongoing business because it excludes the effect of
     Assurant Health runoff operations and the divested Assurant Employee
     Benefits business, which the company sold on March 1, 2016. The
     calculation also excludes net realized gains (losses) on
     investments, amortization of deferred gains and gains on disposal of
     businesses and those events that are highly variable and do not
     represent the ongoing operations of the company. The comparable GAAP
     measure is net income.
                                                                                                                                                      
--------------------------------------------- -------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- -------------------------------------------------
(UNAUDITED)                                                                2Q                                                         2Q                                                      6 Months                                               6 Months
(in millions)                                                             2017                                                       2016                                                       2017                                                   2016
--------------------------------------------- -------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- ----------------------------------------------------------------------------- -------------------------------------------------
    Net operating income                                                              $           90.5                                                              $           89.0                                                              $          196.4                                                              $  189.2
Adjustments (pre-tax):
  Assurant Health runoff operations                                                                4.3                                                                          (7.7 )                                                                        16.9                                                                 (42.0 )
  Assurant Employee Benefits                                                            --                                                                --                                                                --                                                                  16.8
  Net realized gains on investments                                                               13.2                                                                          21.6                                                                          16.6                                                                 183.3
                                                                                                  23.4                                                                         125.8                                                                          60.4                                                                 173.4
  Amortization of deferred gains and gains on
  disposal of
  businesses
  Other adjustments                                                                                3.9                                                                         (15.6 )                                                                         9.7                                                                 (14.2 )
  Provision for income taxes                                                  (15.1 )                                                    (43.8 )                                                    (36.0 )                                           (116.8 )
                                                                   -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------ --------------------
    GAAP net income                                                                   $          120.2                                           $          169.3                                           $          264.0                                           $  389.7  
                                                                   ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ====== ====================
(5)   Assurant uses Corporate & Other net operating loss as an important
                         measure of the corporate segment’s operating performance. Corporate
                         & Other net operating loss equals Total Corporate & Other segment
                         net income, excluding Health runoff operations net income (loss),
                         amortization of deferred gains and gains on disposal of businesses,
                         net realized gains (losses) on investments, interest expense and
                         other highly variable items. The company believes Corporate & Other
                         net operating loss provides a valuable measure of the performance of
                         the company’s corporate segment because it excludes the effect of
                         amortization of deferred gains and gains on disposal of businesses,
                         net realized gains (losses) on investments, interest expense and
                         those events that are highly variable and do not represent the
                         ongoing operations of the company’s corporate segment. The
                         comparable GAAP measure is Total Corporate & Other segment net
                         income.
                                                                                                                                                     
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- -------------------------------------------------
(UNAUDITED)                                                                                   2Q                                                 2Q                                              6 Months                                           6 Months
(in millions)                                                                                2017                                               2016                                               2017                                               2016
-------------------------------------------------------------------- -------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- --------------------------------------------------------------------- -------------------------------------------------
                                                                                                                                                                                                                                                                                                             
GAAP Total Corporate & Other segment net income                                                              $   11.0                                                              $   51.0                                                              $   30.6                                                              $  137.4
Excluding: Health runoff operations net income (loss)                                          3.5                            (5.4 )                                             11.4                           (32.6 )
                                                                                          -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
GAAP Corporate & Other segment net income                                                                         7.5                                                                  56.4                                                                  19.2                                                                 170.0
 Adjustments, pre-tax:
  Amortization of deferred gains and gains on disposal of businesses                                            (23.4 )                                                              (125.8 )                                                               (60.4 )                                                              (173.4 )
  Interest expense                                                                                               12.4                                                                  15.2                                                                  25.0                                                                  29.7
  Net realized gains on investments                                                                             (13.2 )                                                               (21.6 )                                                               (16.6 )                                                              (183.3 )
  Other adjustments                                                                                              (3.9 )                                                                15.6                                                                  (9.7 )                                                                14.2
  Provision for income taxes                                                                  10.0                            40.8                            21.8                           109.5  
                                                                                          -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------                      -------------------- ------ --------------------
Corporate & other net operating loss                                                                         $  (10.6 )                                                            $  (19.4 )                                                            $  (20.7 )                                                            $  (33.3 )
                                                                                          ==================== ====== ====================                      ==================== ====== ====================                      ==================== ====== ====================                      ==================== ====== ====================
(6)   The company outlook for Corporate & Other full-year net operating
                         loss constitutes forward-looking information and the company
                         believes that it cannot reconcile such forward-looking information
                         to the most comparable GAAP measure without unreasonable efforts. A
                         reconciliation would require the company to quantify amortization of
                         deferred gains and gains on disposal of businesses, interest
                         expense, net realized gains on investments, and change in derivative
                         investment. The last two components cannot be reliably quantified
                         due to the combination of variability and volatility of such
                         components and may, depending on the size of the components, have a
                         significant impact on the reconciliation. The company is able to
                         reasonably quantify a range for the first two components for the
                         forecast period, based on certain assumptions relating to future
                         reinsured premium on disposed business and level of interest on
                         non-recourse debt during the forecast period. In addition, the
                         company is assuming it does not incur additional recourse debt or
                         extinguish recourse debt in the forecast period. Amortization of
                         deferred gains and gains on disposal of businesses is expected to be
                         approximately $62-72 million after-tax while interest expense is
                         expected to be approximately $32-35 million after-tax.
                          
                         A summary of net operating income disclosed items is included on
                         page 19 of the company’s Financial Supplement, which is available
                         in the Investor Relations section of www.assurant.com.
Assurant, Inc.
Consolidated Statement of Operations (unaudited)
Three Months and Six Months Ended June 30, 2017 and 2016
                                                                                                                                                                                      
                                                                                                                                     2Q                                                                                                           6 Months
                                                                                                        2017                                  2016                                  2017                                2016
                                                                                        -------------------------------------------------------- -------------------------------------------------------- -------------------------------------------------------- --------------------------------
                                                                                                                                                                                                                    (in millions except number of shares and per share amounts)
Revenues
Net earned premiums                                                                                        $        1,115.3                                         $        1,202.3                                         $        2,165.6                                         $    2,617.5
Fees and other income                                                                                                 326.9                                                    328.3                                                    667.1                                                686.0
Net investment income                                                                                                 121.7                                                    119.8                                                    242.3                                                255.5
Net realized gains on investments                                                                                      13.2                                                     21.6                                                     16.6                                                183.3
Gain on pension plan curtailment                                                                             --                                           --                                           --                                                 29.6
Amortization of deferred gains and gains on disposal of businesses                                  23.4                                 125.8                                  60.4                             173.4
                                                                                        -------------------- --------------                      -------------------- --------------                      -------------------- --------------                      -------------------- ----------
  Total revenues                                                                                 1,600.5                               1,797.8                               3,152.0                           3,945.3
                                                                                        -------------------- --------------                      -------------------- --------------                      -------------------- --------------                      -------------------- ----------
Benefits, losses and expenses
Policyholder benefits                                                                                                 416.4                                                    400.8                                                    774.4                                                944.6
Selling, underwriting, general and administrative expenses                                                            993.0                                                  1,146.3                                                  1,958.8                                              2,397.9
Interest expense                                                                                    12.4                                  15.2                                  25.0                              29.7
                                                                                        -------------------- --------------                      -------------------- --------------                      -------------------- --------------                      -------------------- ----------
  Total benefits, losses and expenses                                                            1,421.8                               1,562.3                               2,758.2                           3,372.2
                                                                                        -------------------- --------------                      -------------------- --------------                      -------------------- --------------                      -------------------- ----------
Income before provision for income taxes                                                                              178.7                                                    235.5                                                    393.8                                                573.1
Provision for income taxes                                                                          58.5                                  66.2                                 129.8                             183.4
                                                                                        -------------------- --------------                      -------------------- --------------                      -------------------- --------------                      -------------------- ----------
  Net income                                                                                               $          120.2                                         $          169.3                                         $          264.0                                         $      389.7
                                                                                        ==================== ==============                      ==================== ==============                      ==================== ==============                      ==================== ==========
                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                    
Net income per share:
  Basic                                                                                                    $           2.18                                         $           2.72                                         $           4.74                                         $       6.12
  Diluted                                                                                                  $           2.16                                         $           2.70                                         $           4.71                                         $       6.06
                                                                                                                                                                                                                                                                    
Dividends per share                                                                                        $           0.53                                         $           0.50                                         $           1.06                                         $       1.00
                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                    
Share data:
  Basic weighted average shares outstanding                                                                      55,230,367                                               62,244,778                                               55,713,172                                           63,665,856
                                                                                                                                                                                                                                                                    
  Diluted weighted average shares outstanding                                                                    55,509,898                                               62,723,292                                               56,075,152                                           64,274,009
Assurant, Inc.
Consolidated Condensed Balance Sheets (unaudited)
At June 30, 2017 and Dec. 31, 2016
                                                                                   
                                                                                  June 30,                                          December 31,
                                              2017                             2016
------------------------------------------------- -------------------- -------------------------------------------------- --------------------------------
                                                                                                          (in millions)
Assets
Investments and cash and cash equivalents                                                 $ 12,488.4                                         $   12,511.0
Reinsurance recoverables                                                                     8,953.2                                              9,083.2
Deferred acquisition costs                                                                   3,326.6                                              3,267.4
Goodwill                                                                                       905.5                                                830.9
Assets held in separate accounts                                                             1,779.1                                              1,692.3
Other assets                                                              2,606.1                           2,324.3
                                                                       -------------------- --------                      -------------------- ----------
  Total assets                                                                            $ 30,058.9                                         $   29,709.1
                                                                       ==================== ========                      ==================== ==========
                                                                                                                           
Liabilities
Policyholder benefits and claims payable                                                  $ 13,371.4                                         $   13,414.1
Unearned premiums                                                                            6,718.3                                              6,626.5
Debt                                                                                         1,136.6                                              1,067.0
Liabilities related to separate accounts                                                     1,779.1                                              1,692.3
Deferred gain on disposal of businesses                                                        170.1                                                232.2
Accounts payable and other liabilities                                    2,658.8                           2,578.9
                                                                       -------------------- --------                      -------------------- ----------
  Total liabilities                                                      25,834.3                          25,611.0
                                                                       -------------------- --------                      -------------------- ----------
                                                                                                                           
Stockholders’ equity
Equity, excluding accumulated other comprehensive                                            3,987.7                                              4,003.5
income
Accumulated other comprehensive income                                      236.9                              94.6
                                                                       -------------------- --------                      -------------------- ----------
  Total stockholders’ equity                                              4,224.6                           4,098.1
                                                                       -------------------- --------                      -------------------- ----------
  Total liabilities and stockholders’ equity                                              $ 30,058.9                                         $   29,709.1
                                                                       ==================== ========                      ==================== ==========

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170801006619r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170801006619/en/

SOURCE: Assurant, Inc.

Assurant 
Media: 
John M. Moran 
Vice President, External Communication 
212.859.7002 
john.m.moran@assurant.com 
or 
Investor Relations: 
Sean Moshier 
Manager, Investor Relations 
212.859.5831 
sean.moshier@assurant.com


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