(In millions, except number of shares and per share amounts)
The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with Management's Discussion and
Analysis of Financial Condition and Results of Operations ("MD&A") and the
annual audited consolidated financial statements for the year ended December 31,
2019 and accompanying notes included in our Annual Report on Form 10-K for the
year ended December 31, 2019 (the "2019 Annual Report") filed with the U.S.
Securities and Exchange Commission (the "SEC") and the unaudited consolidated
financial statements for the three months ended March 31, 2020 and accompanying
notes (the "Consolidated Financial Statements") included elsewhere in this
Quarterly Report on Form 10-Q (this "Report").
Some of the statements included in this MD&A and elsewhere in this Report,
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 "will," "may," "can," "anticipates," "expects," "estimates,"
"projects," "intends," "plans," "believes," "targets," "forecasts," "potential,"
"approximately," and the negative version of those words and other words and
terms with a similar meaning. Any forward-looking statements contained in this
Report are based upon our historical performance and on current plans, estimates
and expectations. The inclusion of this forward-looking information should not
be regarded as a representation by us or any other person that our future plans,
estimates or expectations will be achieved. Our actual results might differ
materially from those projected in the forward-looking statements. We undertake
no obligation to update or review any forward-looking statement, whether as a
result of new information, future events or other developments. The following
factors could cause our actual results to differ materially from those currently
estimated by management:
(i)    the loss of significant clients, distributors or other parties with whom
       we do business, or if we are unable to renew contracts with them on
       favorable terms, or those parties facing financial, reputational or
       regulatory issues;


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


(iii)  the failure to find suitable acquisitions, integrate completed

acquisitions or grow organically, and risks associated with joint ventures

and franchise ownership and operations;

(iv) the impact of general economic, financial market and political conditions,

including unfavorable conditions in the capital and credit markets and in


       the markets in which we operate, including as a result of COVID-19;

(v) the impact of the COVID-19 pandemic, including the scope and duration of

the outbreak, government actions and restrictive measures taken in

response, and its effect on the global economic and financial markets;

(vi) risks related to our international operations, including the United

Kingdom's withdrawal from the European Union, or fluctuations in exchange

rates;

(vii) the impact of catastrophic and non-catastrophe losses, including as a

result of climate change;

(viii) our inability to recover should we experience a business continuity event,

including as a result of COVID-19;

(ix) our inability to develop and maintain distribution sources or attract and

retain sales representatives and executives with key client relationships;

(x) the failure to manage vendors and other third parties on whom we rely to

conduct business and provide services to our clients;

(xi) declines in the value of mobile devices, the risk of guaranteed buybacks

or export compliance risk in our mobile business;

(xii) negative publicity relating to our products and services or the markets in

which we operate;

(xiii) the failure to implement our strategy and to attract and retain key

personnel, including senior management;

(xiv) employee misconduct;

(xv) the adequacy of reserves established for claims and our inability to

accurately predict and price for claims;

(xvi) a decline in financial strength ratings or corporate senior debt ratings;

(xvii) an impairment of goodwill or other intangible assets;


                                       38
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(xviii) the failure to maintain effective internal control over financial

reporting;




(xix)  a decrease in the value of our investment portfolio, including due to
       market, credit and liquidity risks, changes in interest rates and
       COVID-19;

(xx) the impact of U.S. tax reform legislation and impairment of deferred tax

assets;

(xxi) the unavailability or inadequacy of reinsurance coverage and the credit

risk of reinsurers, including those to whom we have sold business through

reinsurance;

(xxii) the credit risk of some of our agents, third-party administrators and

clients;




(xxiii) the inability of our subsidiaries to pay sufficient dividends to the
        holding company and limitations on our ability to declare and pay
        dividends, including as a result of COVID-19;

(xxiv) changes in the method for determining LIBOR or the replacement of LIBOR;

(xxv) the failure to effectively maintain and modernize our information

technology systems and infrastructure, or the failure to integrate those

of acquired businesses;

(xxvi) breaches of our information systems or those of third parties with whom we

do business, or the failure to protect data in such systems, including due

to cyber-attacks and as a result of working remotely during the COVID-19

pandemic;

(xxvii) the costs of complying with, or the failure to comply with, extensive

laws and regulations to which we are subject, including those related to

privacy, data security and data protection;

(xxviii) the impact from litigation and regulatory actions, including those

arising from COVID-19;

(xxix) reductions or deferrals in the insurance premiums we charge, including as


       a result of COVID-19; and


(xxx)  changes in insurance and other regulation, including to mitigate the
       impact of COVID-19.


For additional information on factors that could affect our actual results,
please refer to "Critical Factors Affecting Results" below and in Item 7 of our
2019 Annual Report, and "Item 1A-Risk Factors" below and in our 2019 Annual
Report.
General
As of March 31, 2020, the Company had four reportable segments, which are
defined based on the nature of the products and services offered:
•      Global Lifestyle: provides mobile device solutions and extended service

products and related services for consumer electronics and appliances

(referred to as "Connected Living"); vehicle protection and related

services (referred to as "Global Automotive"); and credit and other

insurance products (referred to as "Global Financial Services and Other");

Global Housing: provides lender-placed homeowners insurance, lender-placed

manufactured housing insurance and lender-placed flood insurance (referred

to as "Lender-placed Insurance"); renters insurance and related products

(referred to as "Multifamily Housing"); and voluntary manufactured housing

insurance, voluntary homeowners insurance and other specialty products


       (referred to as "Specialty and Other");


•      Global Preneed: provides pre-funded funeral insurance, final need
       insurance and related services; and

• Corporate and Other: includes activities of the holding company, financing

and interest expenses, net realized gains (losses) on investments (which

includes unrealized gains (losses) on equity securities and changes in

fair value of direct investments in collateralized loan obligations),

interest income earned from short-term investments held, income (expenses)

primarily related to the Company's frozen benefit plans, amounts related

to businesses previously disposed of through reinsurance and the runoff of

the Assurant Health business. Corporate and Other also includes the

foreign currency gains (losses) from remeasurement of monetary assets and

liabilities, changes in the fair value of derivative instruments and other

expenses related to merger and acquisition activities, as well as other

highly variable or unusual items other than reportable catastrophes

(reportable catastrophe losses, net of reinsurance and client profit

sharing adjustments, and including reinstatement and other premiums).

The following discussion covers the three months ended March 31, 2020 ("First Quarter 2020") and the three months ended March 31, 2019 ("First Quarter 2019").


                                       39
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Executive Summary
COVID-19
In March 2020, the World Health Organization recognized the novel strain of
coronavirus, COVID-19, as a pandemic. While still evolving, the COVID-19
pandemic has caused significant global economic and financial market disruption,
resulting in increased financial market volatility, business and operational
challenges such as temporary closures of businesses, and diminished expectations
for the economy and the financial markets.
Toward the end of First Quarter 2020 and into the second quarter of 2020, the
pandemic began to impact each of our operating segments and may continue to
impact our businesses if similar conditions persist or worsen. The COVID-19
impact on net income for First Quarter 2020 included $76.1 million of after-tax
net unrealized investment losses related to a decrease in the fair value of our
equity securities and collateralized loan obligations and $7.3 million after-tax
increase in our allowances for expected credit losses largely related to
increased credit risk for premiums receivable and reinsurance recoverables.
These losses were mostly offset by a $79.3 million tax benefit related to the
March 2020 enactment of the Coronavirus Aid, Relief, and Economic Security Act
("CARES Act"), which allows the carryback of net operating losses to years taxed
at higher rates. Our investment portfolio will continue to be impacted by
COVID-19 and related financial market volatility. Though we generally believe
our portfolio remains well diversified and high-quality, with the majority
comprised of investment grade fixed maturity assets, interest rates are expected
to remain relatively low for the foreseeable future. Refer to "-Investments"
below and Note 9 to the Consolidated Financial Statements included elsewhere in
this Report.
Our Response to COVID-19
As a global organization, we have been actively monitoring the developments of
the rapidly evolving situation resulting from COVID-19. Throughout this period
of uncertainty, we have acted swiftly and deliberately to safeguard our
employees, to maintain business operations and service levels for our customers,
and to support our local communities. We implemented a global ban on business
travel and transitioned the vast majority of our workforce to work-from-home.
For those employees who need to work in our global facilities due to the
essential nature of their roles, we've continued to implement safety and hygiene
protocols, such as social distancing, use of personal protection equipment and
regular cleaning and disinfecting of our locations, based on the guidelines of
the Centers for Disease Control. To support our employees during this period of
uncertainty, we have offered financial support through a special COVID-19
Emergency Relief Program to eligible employees who are experiencing severe
financial hardship caused by the pandemic. We also have been active in
maintaining our support within our local communities through charitable
contributions.
Evaluation of Business Trends, Capital and Liquidity
We recognize that our first quarter results may not be an indicator of
performance in the coming quarters, as the COVID-19 pandemic continues to
evolve. We have run multiple scenarios based on the potential duration and
severity of this crisis to better understand how our business might perform and
stress-tested our capital, cash flows and liquidity. We expect a greater impact
to our business as a result of the ongoing financial market volatility,
prolonged government containment measures and their impact on consumer behavior.
In late March and through April, our businesses experienced a reduction in new
sales across our Multifamily Housing and Global Automotive lines of business, as
well as Global Preneed. Our mobile business experienced lower trade-in activity
and slower sales growth. This may be partially offset by our installed customer
base across Connected Living, Global Automotive, Multifamily Housing and Global
Preneed and our counter-cyclical Lender-placed Insurance business, as well as
multiple channels we have in place for consumers. We have also extended options
such as extended grace periods for premium payments and waiving of late payment
fees for policyholders experiencing financial hardship as a result of COVID-19
and are monitoring results across our product lines.
For Global Lifestyle, in mobile, we expect new subscriber growth to be more
muted in the event of a prolonged crisis and lower trade-in volumes, reflecting
store closures and lower demand for new devices. While uncertain, we expect
volumes to rebound when stores re-open and carriers resume in-store promotional
activity. In Global Automotive, we believe a reduction in sales would impact the
business longer term, while unearned premium continues to contribute in the
shorter term. Furthermore, approximately half of our business within Global
Automotive comes from service contracts on used car sales, which have been less
impacted as a result of prior economic downturns. We would also expect
investment income to be impacted from lower investment yields coming from new
business. Throughout Global Lifestyle, we may also continue to see adverse
fluctuations in foreign exchange.
For Global Housing, we expect some level of continued decline in new policies as
renters delay moving, which may be offset if tenants regain comfort with moving
and as we enter the summer when we typically experience increased activity. For
Lender-placed Insurance, we will continue to monitor the state of the overall
housing market, including the potential impact of the current mortgage
moratorium which would delay placement of new policies. Should the economy
deteriorate for a

                                       40
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prolonged period, we would expect a longer term increase in our placement rates
which would be beyond 2020. Lastly, our small commercial business continues to
run-off and we continue to monitor regulatory actions regarding business
interruption coverage, though our policies generally include virus exclusions.
For Global Preneed, we are working with our clients on product changes and
increasing our virtual presence. We are also monitoring mortality trends, which
are currently largely consistent with 2019 given our policy footprint which is
concentrated in California, Texas, South Carolina and Tennessee. We expect
longer term results to be impacted from lower yields on new sales due to the
current interest rate environment, given the average duration of our investment
portfolio.
We are taking actions to mitigate potential impacts, including deferring certain
discretionary expenses and delaying the fulfillment of open positions in support
functions. While we are deferring some investments as a precautionary measure,
we have continued to make progress against key strategic initiatives to support
our clients and their customers. These have included continuing to enhance our
self-service capabilities and our dynamic claims fulfillment to facilitate
faster claims resolution, as well as our ongoing IT transformation.
Throughout this period, we believe our liquidity has remained strong. At the end
of March, we had $433.4 million of holding company liquidity and, to strengthen
our liquidity position and capital flexibility during this period of
uncertainty, we drew $200.0 million under our revolving credit facility in
March.
The COVID-19 situation remains fluid and we are actively managing our response
in collaboration with our clients, our employees, our vendors and other third
parties with whom we work, and assessing potential impacts to our business,
results of operations and financial condition.
For a discussion of the material risks relating to COVID-19 on our business,
results of operations and financial condition, refer to the risk factor
disclosed in Item 8.01 of our Current Report on Form 8-K filed on May 5, 2020
and "Item 1A-Risk Factors-The value of our deferred tax assets could become
impaired, which could materially and adversely affect our results of operations
and financial condition" in our 2019 Annual Report.
Iké
In 2019, we undertook a strategic review of our investment in Iké Grupo, Iké
Asistencia and certain of their affiliates (collectively, "Iké"). In the third
quarter of 2019, we decided to pursue the sale of our interests in Iké and on
January 29, 2020, we entered into agreements to sell our interests in Iké to the
management shareholders of Iké. We expect closing to occur in the second quarter
of 2020 resulting in an expected net cash outflow of $54 million, plus seller
financing in an amount of up to $40 million as well as transaction costs. In
connection with this agreement, we recorded an incremental after-tax loss of
$5.8 million in First Quarter 2020, primarily due to changes in foreign
currency, as partially offset by gains from an economic hedge that we
established. The sale is subject to customary closing conditions. For additional
information on this transaction, see "-Liquidity and Capital Resources" below
and Note 5 to the Consolidated Financial Statements included elsewhere in this
Report.
American Financial & Automotive Services
On May 1, 2020, we completed our acquisition of American Financial & Automotive
Services ("AFAS"), a provider of finance and insurance products and services
including vehicle service contracts and other ancillary products sold directly
through a network of nearly 600 franchised dealership clients across 40 states,
for $157.5 million.
Summary of Financial Results:
Consolidated net income attributable to common stockholders decreased $11.0
million, or 7%, to $150.0 million for First Quarter 2020 compared with net
income attributable to common stockholders of $161.0 million for First Quarter
2019, primarily driven by an increase in unrealized losses on investments mostly
related to a net decrease in the fair value of equity securities and direct
investments in collateralized loan obligations compared to net unrealized gains
from equity securities in First Quarter 2019, partially offset by a $79.3
million tax benefit related to the CARES Act.
Global Lifestyle segment net income increased $20.3 million, or 20%, to $120.9
million for First Quarter 2020 from $100.6 million for First Quarter 2019. First
Quarter 2020 included a $6.7 million client recoverable in Connected Living.
Excluding this item, segment net income growth was driven primarily by an
increase in mobile subscribers from new and existing programs, as well as higher
income from Global Automotive, including some one-time benefits. The increase
was partially offset by lower margins from our mobile trade-in programs, in part
due to the impact of COVID-19, and unfavorable foreign exchange.
Global Lifestyle net earned premiums, fees and other income increased $265.3
million, or 16%, to $1.95 billion for First Quarter 2020 from $1.68 billion for
First Quarter 2019, primarily due to higher mobile trade-in volumes and
continued

                                       41
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subscriber growth from recently added protection programs. Growth in extended
service contracts and Global Automotive also contributed to the increase.
Global Housing segment net income increased $1.5 million, or 2%, to $74.2
million for First Quarter 2020 compared with $72.7 million for First Quarter
2019. Results included $4.0 million of higher reportable catastrophes, mainly
related to earthquakes in Puerto Rico, compared to First Quarter 2019. Excluding
reportable catastrophes, segment net income increased primarily due to favorable
non-catastrophe loss experience, the absence of losses within the small
commercial business, which is now in run-off, and higher premium rates in our
Lender-placed Insurance business. The increase was partially offset by a
reduction of policies in-force, including from the previously disclosed
financially insolvent client.
Global Housing net earned premiums, fees and other income were flat
year-over-year, as continued growth from sharing economy products and
Multifamily Housing was offset by declines in Lender-placed Insurance, primarily
related to the financially insolvent client and the expected run-off of small
commercial products as referenced above.
Global Preneed segment net income increased $0.5 million, or 4%, to $12.3
million for First Quarter 2020 from $11.8 million in First Quarter 2019,
primarily due to continued growth in the U.S. from prefunded funeral policies as
well as prior period sales of final need insurance.
Global Preneed net earned premiums, fees and other income increased $4.3
million, or 9%, to $53.4 million for First Quarter 2020 from $49.1 million for
First Quarter 2019, primarily driven by the factors listed above.
Critical Factors Affecting Results
Our results depend on, among other things, the appropriateness of our product
pricing, underwriting, the accuracy of our reserving methodology for future
policyholder benefits and claims, the frequency and severity of reportable and
non-reportable catastrophes, returns on and values of invested assets, and our
ability to manage our expenses and achieve expense savings. Our results will
also depend on our ability to profitably grow all of our businesses, in
particular our Connected Living, Multifamily Housing and Global Automotive
businesses, and manage the pace of declines in placement rates in our
Lender-placed Insurance business and the North American credit insurance
business in Global Financial Services and Other. Factors affecting these items,
including the impact of the COVID-19 pandemic and measures taken in response
thereto, conditions in financial markets, the global economy and the markets in
which we operate, fluctuations in exchange rates and inflation, may have a
material adverse effect on our results of operations or financial condition. For
more information on these and other factors that could affect our results, see
"Item 1A-Risk Factors", below and in our 2019 Annual Report, "Item
7-Management's Discussion and Analysis of Financial Condition and Results of
Operations-Critical Factors Affecting Results" in our 2019 Annual Report and
"Item 2-Management's Discussion and Analysis of Financial Condition and Results
of Operations-Executive Summary-COVID-19," above.
Our results may be impacted by our ability to continue to grow in the markets in
which we operate, including in our Connected Living, Multifamily Housing and
Global Automotive businesses. Our mobile business is subject to volatility in
mobile device trade-in volumes based on the actual and anticipated timing of the
release of new devices and carrier promotional programs, as well as to changes
in consumer preferences. Our Lender-placed Insurance revenues will also be
impacted by changes in the housing market. In addition, across many of our
businesses, we must respond to the threat of disruption. See "Item 1A-Risk
Factors-Business and Competitive Risks-Significant competitive pressures,
changes in customer preferences and disruption could adversely affect our
results of operations" in our 2019 Annual Report.
Management believes that we will have sufficient liquidity to satisfy our needs
over the next twelve months, including the ability to pay interest on our debt
and dividends on our common and preferred stock.
For the three months ended March 31, 2020, net cash used in operating activities
was $123.7 million; net cash provided by investing activities was $181.9 million
and net cash provided by financing activities was $91.4 million. We had $2.00
billion in cash and cash equivalents as of March 31, 2020 as compared to $1.87
billion as of December 31, 2019. See "-Liquidity and Capital Resources," below
for further details.
Critical Accounting Policies and Estimates
Our 2019 Annual Report describes the accounting policies and estimates that are
critical to the understanding of our results of operations, financial condition
and liquidity. The accounting policies and estimation process described in the
2019 Annual Report were consistently applied to the unaudited interim
Consolidated Financial Statements for First Quarter 2020.
Recent Accounting Pronouncements

                                       42
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For a discussion of recent accounting pronouncements, see Note 3 to the
Consolidated Financial Statements included elsewhere in this Report.
Regulatory Matters
We are subject to extensive federal, state and international regulation and
supervision in the jurisdictions in which we do business, including insurance
holding company laws in the jurisdictions in which our insurance companies are
domiciled. For example, 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. Under these laws, "control" is presumed when any
person acquires or holds, directly or indirectly, 10% or more of our common
stock or of the voting securities of any of our insurance company subsidiaries.
To obtain approval, the proposed acquiror must file an application with the
relevant regulator, including the regulator for the insurance subsidiaries we
have established in the Netherlands for continued access to the European markets
after the transition period for the U.K.'s withdrawal from the European Union.
For additional information, see "Item 1-Business-Regulation" in our 2019 Annual
Report.

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Results of Operations
Assurant Consolidated
Overview
The table below presents information regarding our consolidated results of
operations for the periods indicated:
                                                             For the Three Months Ended
                                                                      March 31,
                                                                2020             2019
Revenues:
Net earned premiums                                        $   2,083.8       $   1,904.4
Fees and other income                                            416.9             328.3
Net investment income                                            156.0             166.3
Net realized (losses) gains on investments                       (95.3 )    

28.8


Amortization of deferred gains on disposal of businesses           4.2      

7.8


Total revenues                                                 2,565.6      

2,435.6


Benefits, losses and expenses:
Policyholder benefits                                            607.2      

614.7

Amortization of deferred acquisition costs and value of business acquired

                                                914.2      

777.3


Underwriting, general and administrative expenses                908.1             799.9
Iké net losses                                                     1.4               0.2
Interest expense                                                  25.5              26.5
Total benefits, losses and expenses                            2,456.4      

2,218.6


Income before (benefit) provision for income taxes               109.2      

217.0


(Benefit) provision for income taxes                             (46.6 )    

48.4


Net income                                                       155.8      

168.6

Less: Net income attributable to non-controlling interest (1.1 )

         (2.9 )
Net income attributable to stockholders                          154.7      

165.7


Less: Preferred stock dividends                                   (4.7 )            (4.7 )
Net income attributable to common stockholders             $     150.0

$ 161.0





For the Three Months Ended March 31, 2020 Compared to the Three Months Ended
March 31, 2019
Net Income Attributable to Common Stockholders
Consolidated net income attributable to common stockholders decreased $11.0
million, or 7%, to $150.0 million for First Quarter 2020 compared with $161.0
million for First Quarter 2019. The decrease was mostly due to an increase in
net realized losses on investments driven by $76.1 million of after-tax net
unrealized losses from a decrease in the fair value of our equity securities and
collateralized loan obligations in First Quarter 2020 compared to $24.4 million
of after-tax unrealized gains on equity securities in First Quarter 2019. This
decrease was partially offset by a $79.3 million tax benefit related to the
utilization of net operating losses in connection with the CARES Act and
favorable earnings contributions from Global Lifestyle.



                                       44
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Global Lifestyle
Overview
The table below presents information regarding the Global Lifestyle segment's
results of operations for the periods indicated:
                                                            For the Three Months Ended
                                                                     March 31,
                                                                2020            2019
Revenues:
Net earned premiums                                        $    1,597.7     $  1,428.5
Fees and other income                                             349.2          253.1
Net investment income                                              54.7           58.9
Total revenues                                                  2,001.6        1,740.5
Benefits, losses and expenses:
Policyholder benefits                                             336.2     

347.2

Amortization of deferred acquisition costs and value of business acquired

                                                 838.4     

705.8


Underwriting, general and administrative expenses                 667.9     

555.8


Total benefits, losses and expenses                             1,842.5     

1,608.8


Segment income before provision for income taxes                  159.1          131.7
Provision for income taxes                                         38.2           31.1
Segment net income                                         $      120.9     $    100.6
Net earned premiums, fees and other income:
Connected Living (mobile and service contracts)            $    1,088.3     $    871.0
Global Automotive                                                 753.1     

693.6

Global Financial Services and Other                               105.5     

117.0


Total                                                      $    1,946.9     $  1,681.6
Net earned premiums, fees and other income:
Domestic                                                   $    1,434.5     $  1,191.3
International                                                     512.4          490.3
Total                                                      $    1,946.9     $  1,681.6


For the Three Months Ended March 31, 2020 Compared to the Three Months Ended
March 31, 2019
Net Income
Segment net income increased $20.3 million, or 20%, to $120.9 million for First
Quarter 2020 from $100.6 million for First Quarter 2019, and included a $6.7
million after-tax benefit for a client recoverable in our Connected Living
business. Excluding this item, net income increased primarily due to an increase
in mobile subscribers from new and existing programs, as well as higher income
in our Global Automotive business, including some one-time benefits. The
increase was partially offset by lower trade-in margins from our mobile repairs
and logistics business, partially due to the impact of COVID-19, and unfavorable
foreign exchange.
Total Revenues
Total revenues increased $261.1 million, or 15%, to $2.00 billion for First
Quarter 2020 from $1.74 billion for First Quarter 2019. Net earned premiums
increased $169.2 million, or 12%, mostly driven by organic growth in our
Connected Living business, mainly due to a new extended service contract program
and continued subscriber growth from recently added mobile protection programs,
and continued growth in our Global Automotive business, partially offset by
unfavorable foreign exchange. Fees and other income increased $96.1 million, or
38%, primarily due to higher trade-in volumes from our mobile repairs and
logistics business and an $11.1 million benefit for a client recoverable in our
Connected Living business. Net investment income decreased $4.2 million, or 7%,
primarily due to unfavorable foreign exchange and an increase in investment
expenses related to our strategic decision to outsource the management of our
investment portfolio.

                                       45
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Total Benefits, Losses and Expenses
Total benefits, losses and expenses increased $233.7 million, or 15%, to $1.84
billion for First Quarter 2020 from $1.61 billion for First Quarter 2019.
Policyholder benefits decreased $11.0 million, or 3%, primarily driven by lower
loss experience due to a favorable mix of mobile business and favorable foreign
exchange, partially offset by an increase from growth in Connected Living
business. Amortization of deferred acquisition costs and value of business
acquired increased $132.6 million, or 19%, primarily due to growth in our Global
Automotive and Connected Living businesses. Underwriting, general and
administrative expenses increased $112.1 million, or 20%, primarily due to
growth in our Connected Living business, including higher trade-in volumes from
our domestic repairs and logistics business and growth in our mobile protection
and extended service contract programs, as well as growth in our Global
Automotive business.

                                       46
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Global Housing
Overview
The table below presents information regarding the Global Housing segment's
results of operations for the periods indicated:
                                                            For the Three Months Ended
                                                                     March 31,
                                                                2020            2019
Revenues:
Net earned premiums                                        $      467.8     $    460.1
Fees and other income                                              32.6           39.9
Net investment income                                              22.0           25.4
Total revenues                                                    522.4          525.4
Benefits, losses and expenses:
Policyholder benefits                                             198.7     

198.9

Amortization of deferred acquisition costs and value of business acquired

                                                  56.9     

53.9


Underwriting, general and administrative expenses                 173.3     

180.7


Total benefits, losses and expenses                               428.9     

433.5


Segment income before provision for income taxes                   93.5           91.9
Provision for income taxes                                         19.3           19.2
Segment net income                                         $       74.2     $     72.7
Net earned premiums, fees and other income:
Lender-placed Insurance                                    $      264.3     $    274.2
Multifamily Housing                                               109.0          104.0
Specialty and Other                                               127.1          121.8
Total                                                      $      500.4     $    500.0


For the Three Months Ended March 31, 2020 Compared to the Three Months Ended
March 31, 2019
Net Income
Segment net income increased $1.5 million, or 2%, to $74.2 million for First
Quarter 2020 from $72.7 million for First Quarter 2019. Segment net income
included $4.0 million of higher reportable catastrophes in First Quarter 2020
compared to First Quarter 2019 mainly related to earthquakes in Puerto Rico.
Excluding reportable catastrophes, segment net income increased $5.5 million, or
7%, primarily driven by the absence of losses within the small commercial
business, which is now in run-off, and higher premium rates in our Lender-placed
Insurance business. The increase was partially offset by declines in our
Lender-placed Insurance business, mainly from a reduction in loans tracked,
including those from a financially insolvent client.
Total Revenues
Total revenues decreased $3.0 million, or 1%, to $522.4 million for First
Quarter 2020 from $525.4 million for First Quarter 2019. Net earned premiums
increased $7.7 million, or 2%, primarily due to growth from our Specialty and
Other business, mainly sharing economy products, premium rate increases in our
Lender-placed Insurance business and continued growth from renters insurance in
our Multifamily Housing business, partially offset by declines in our
Lender-placed Insurance business, mainly from the reduction in loans tracked for
a financially insolvent client, decline in placement rates and lower real estate
owned volume. Fees and other income decreased $7.3 million, or 18%, primarily
due to a decline in Lender-placed Insurance mostly due to declines in the volume
of loans tracked and reduced fees for services. Net investment income decreased
$3.4 million, or 13%, primarily due to a lower income from real estate related
investments.

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Total Benefits, Losses and Expenses
Total benefits, losses and expenses decreased $4.6 million, or 1%, to $428.9
million for First Quarter 2020 from $433.5 million for First Quarter 2019. The
decrease was primarily due to a decrease in underwriting, general and
administrative expenses of $7.4 million, or 4%, primarily due to lower
employment related expenses in our Lender-placed Insurance business. Total
policyholder benefits were flat as a decrease in non-catastrophe losses,
primarily due to reduced frequency of water damage losses across various
products, was largely offset by an increase in reportable catastrophe losses
mainly related to earthquakes in Puerto Rico. Amortization of deferred
acquisition costs increased $3.0 million, or 6%, primarily due to new
Lender-placed Insurance business and growth in our Multifamily Housing business,
partially offset by the runoff of our small commercial business.

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Global Preneed
Overview
The table below presents information regarding the Global Preneed segment's
results of operations for the periods indicated:
                                                             For the Three Months Ended
                                                                     March 31,
                                                                2020             2019
Revenues:
Net earned premiums                                        $        18.3     $     15.8
Fees and other income                                               35.1           33.3
Net investment income                                               70.1           69.1
Total revenues                                                     123.5          118.2
Benefits, losses and expenses:
Policyholder benefits                                               72.0    

68.6

Amortization of deferred acquisition costs and value of business acquired

                                                   18.9    

17.6


Underwriting, general and administrative expenses                   17.0    

16.9


Total benefits, losses and expenses                                107.9    

103.1


Segment income before provision for income taxes                    15.6           15.1
Provision for income taxes                                           3.3            3.3
Segment net income                                         $        12.3     $     11.8


For the Three Months Ended March 31, 2020 Compared to the Three Months Ended
March 31, 2019
Net Income
Segment net income increased $0.5 million, or 4%, to $12.3 million in First
Quarter 2020 from $11.8 million in First Quarter 2019, primarily due to
continued growth in the U.S. from prefunded funeral policies as well as prior
period sales of final need insurance.
Total Revenues
Total revenues increased $5.3 million, or 4%, to $123.5 million for First
Quarter 2020 from $118.2 million for First Quarter 2019. Net earned premiums
increased $2.5 million, or 16%, primarily due to supplemental policy conversions
and sales of final need insurance. Fees and other income increased $1.8 million,
or 5%, primarily due to growth in prefunded funeral policies in the U.S. Net
investment income increased $1.0 million, or 1%, primarily due to an increase in
invested assets, partially offset by lower yields and an increase in investment
expenses related to our strategic decision to outsource the management of our
investment portfolio.
Total Benefits, Losses and Expenses
Total benefits, losses and expenses increased $4.8 million, or 5%, to $107.9
million for First Quarter 2020 from $103.1 million for First Quarter 2019.
Policyholder benefits increased $3.4 million, or 5%, primarily due to higher
mortality. Amortization of deferred acquisition costs and value of business
acquired increased $1.3 million, or 7%.

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Corporate and Other
Overview
The tables below present information regarding the Corporate and Other's segment
results of operations for the periods indicated:
                                                              For the Three Months Ended March 31,
                                                                   2020                    2019
Revenues:
Fees and other income                                                     -                      2.0
Net investment income                                                   9.2                     12.9
Net realized (losses) gains on investments                            (95.3 )                   28.8
Amortization of deferred gains on disposal of businesses                4.2                      7.8
Total revenues                                                        (81.9 )                   51.5
Benefits, losses and expenses:
Policyholder benefits                                                   0.3                        -
General and administrative expenses                                    49.9                     46.5
Iké net losses                                                          1.4                      0.2
Interest expense                                                       25.5                     26.5
Total benefits, losses and expenses                                    77.1                     73.2
Segment loss before benefit for income taxes                         (159.0 )                  (21.7 )
Benefit for income taxes                                             (107.4 )                   (5.2 )
Segment net loss                                                      (51.6 )                  (16.5 )
Less: Net income attributable to non-controlling interest              (1.1 )                   (2.9 )
Net loss attributable to stockholders                                 (52.7 )                  (19.4 )
Less: Preferred stock dividends                                        (4.7 )                   (4.7 )
Net loss attributable to common stockholders               $          (57.4 

) $ (24.1 )




For the Three Months Ended March 31, 2020 Compared to the Three Months Ended
March 31, 2019
Net Loss Attributable to Common Stockholders
Segment net loss attributable to common stockholders increased $33.3 million, or
138%, to $57.4 million for First Quarter 2020 compared to $24.1 million for
First Quarter 2019, primarily due to an increase in net realized losses on
investments driven by $76.1 million of after-tax net unrealized losses from a
decrease in the fair value of our equity securities and collateralized loan
obligations in First Quarter 2020 compared to $24.4 million of after-tax net
unrealized gains on equity securities in First Quarter 2019. This decrease was
partially offset by a $79.3 million tax benefit related to the utilization of
net operating losses in connection with the CARES Act.
Total Revenues
Total revenues decreased $133.4 million to $(81.9) million for First Quarter
2020 from $51.5 million for First Quarter 2019, primarily due to an increase in
unrealized losses on investments mostly related to a decrease in the fair value
of equity securities, a decrease in net investment income primarily due to a
higher concentration of lower yielding liquid investments in First Quarter 2020
compared to First Quarter 2019 and lower amortization of deferred gains
associated with the sale of Assurant Employee Benefits.
Total Expenses
Total benefits, losses and expenses increased $3.9 million, or 5%, to $77.1
million for First Quarter 2020 from $73.2 million for First Quarter 2019. The
increase was primarily driven by $4.6 million of expenses associated with merger
and acquisition related activities, $3.4 million of current expected credit
losses due to an increase in credit risk from reinsurance recoverables related
to business placed into runoff and $3.1 million of direct and incremental
operating expenses incurred in

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connection with the COVID-19 pandemic, partially offset by a $7.4 million decrease in integration expenses associated with the TWG acquisition.


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Investments


We had total investments of $13.62 billion and $14.57 billion as of March 31,
2020 and December 31, 2019, respectively. Net unrealized gains on our fixed
maturity securities portfolio decreased by $461.3 million during First Quarter
2020, from $1.26 billion as of December 31, 2019 to $796.3 million as of March
31, 2020. This decrease was mainly due to widening credit spreads due to the
market volatility caused by the COVID-19 pandemic, partially offset by a
decrease in treasury rates.
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    March 31, 2020         December 31, 2019
Aaa / Aa / A                                $  7,709.9     66.1 %   $   8,014.7     65.1 %
Baa                                            3,436.6     29.4 %       3,734.7     30.3 %
Ba                                               447.6      3.8 %         480.7      3.9 %
B and lower                                       76.5      0.7 %          92.3      0.7 %
Total                                       $ 11,670.6    100.0 %   $  12,322.4    100.0 %


The following table shows the major categories of net investment income for the
periods indicated:
                                                      Three Months Ended
                                                           March 31,
                                                       2020          2019
Fixed maturity securities                          $    120.7      $ 122.1
Equity securities                                         5.2          5.8
Commercial mortgage loans on real estate                  9.7          8.5
Short-term investments                                    2.8          5.6
Other investments                                         5.2          7.6
Cash and cash equivalents                                 7.0          7.0

Revenue from consolidated investment entities (1) 31.9 40.7 Total investment income

                                 182.5        197.3
Investment expenses                                      (9.1 )       (5.6 )

Expenses from consolidated investment entities (1) (17.4 ) (25.4 ) Net investment income

$    156.0      $ 166.3

(1) The following table shows the net of revenues and expenses from consolidated

investment entities for the periods indicated. Refer to Note 10 to the

Consolidated Financial Statements included elsewhere in this Report for

further detail.

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