(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,
2020 and accompanying notes included in our Annual Report on Form 10-K for the
year ended December 31, 2020 (the "2020 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, 2021 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 with respect to the closing of the Global Preneed
transaction, including our financial plans and any statements regarding our
anticipated 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 if those parties face financial, reputational or regulatory issues;
(ii)  significant competitive pressures, changes in customer preferences and
disruption;
(iii)  the failure to implement our strategy and to attract and retain key
personnel, including key executives and senior management;
(iv)  the failure to find suitable acquisitions at attractive prices, integrate
acquired businesses effectively or grow organically;
(v)  our inability to recover should we experience a business continuity event;
(vi)  the failure to manage vendors and other third parties on whom we rely to
conduct business and provide services to our clients;
(vii)  risks related to our international operations;
(viii)  declines in the value of mobile devices, the risk of guaranteed
buybacks, or export compliance or other risks in our mobile business;
(ix)  our inability to develop and maintain distribution sources or attract and
retain sales representatives and executives with key client relationships;
(x)  risks associated with joint ventures, franchises and investments in which
we share ownership and management with third parties;
(xi)  negative publicity relating to our business or industry;
(xii)  the impact of general economic, financial market and political conditions
and conditions in the markets in which we operate;
(xiii)  the impact of the COVID-19 pandemic and measures taken in response
thereto;
(xiv)  the impact of catastrophic and non-catastrophe losses, including as a
result of climate change;
(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 of our insurance subsidiaries or
in our corporate senior debt ratings;
                                       32
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(xvii)  fluctuations in exchange rates;
(xviii)  an impairment of goodwill or other intangible assets;
(xix)  the failure to maintain effective internal control over financial
reporting;
(xx)  unfavorable conditions in the capital and credit markets;
(xxi)  a decrease in the value of our investment portfolio, including due to
market, credit and liquidity risks, and changes in interest rates;
(xxii)  impairment of our deferred tax assets;
(xxiii)  the unavailability or inadequacy of reinsurance coverage and the credit
risk of reinsurers, including those to whom we have sold business through
reinsurance;
(xxiv)  the credit risk of some of our agents, third-party administrators and
clients;
(xxv)  the inability of our subsidiaries to pay sufficient dividends to the
holding company and limitations on our ability to declare and pay dividends or
repurchase shares;
(xxvi)  the failure to effectively maintain and modernize our information
technology systems and infrastructure, or the failure to integrate those of
acquired businesses;
(xxvii)  breaches of our information systems or those of third parties with whom
we do business, or the failure to protect the security of data in such systems,
including due to cyber-attacks and as a result of working remotely;
(xxviii)  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, data protection or tax;
(xxix)  the impact of litigation and regulatory actions;
(xxx)  reductions or deferrals in the insurance premiums we charge;
(xxxi)  changes in insurance, tax and other regulation;
(xxxii)  volatility in our common stock price and trading volume; and
(xxxiii)  employee misconduct.
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
2020 Annual Report, and "Item 1A-Risk Factors" below and in our 2020 Annual
Report.
General
Global Preneed Discontinued Operations
In March 2021, we entered into a definitive agreement to sell the legal entities
which comprise the businesses previously reported as the Global Preneed segment
and certain businesses previously disposed of through reinsurance, which were
previously reported in the Corporate and Other segment (collectively, the
"disposal business") to CUNA Mutual Group ("CUNA") for total cash consideration
of $1.25 billion, subject to certain purchase price adjustments at closing. The
transaction is expected to close by the end of the third quarter of 2021,
subject to regulatory approvals and other customary closing conditions.
The estimated carrying value of the disposal business is subject to adjustment
in future quarters until closing, and may be influenced by various factors
including the following:
•The performance of the disposal business, including the impact of discount,
interest, mortality and reinsurance rates; and
•Changes in the terms of the agreement with CUNA, including as a result of any
subsequent negotiations, any necessary changes to obtain regulatory approval or
any changes due to unanticipated developments.
We have determined that the disposal business meets the criteria to be
classified as held for sale and that the sale represents a strategic shift that
will have a major impact on our operations and financial results. Accordingly,
the results of operations of the disposal business are presented as net income
from discontinued operations in the consolidated statements of
                                       33
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operations and segregated in the consolidated statement of cash flows for all
periods presented and the assets and liabilities for the disposal business have
been classified as held for sale and segregated for all periods presented in the
consolidated balance sheets. Transactions between the disposal business and
businesses in our continuing operations are not eliminated to appropriately
reflect the continuing operations and the assets, liabilities and results of the
disposal business. Refer to "-Results of Operations-Discontinued Operations"
below and Note 4 to the Consolidated Financial Statements included elsewhere in
this Report.
Reportable Segments
As of March 31, 2021, the Company had three reportable segments, excluding
discontinued operations described above, which are defined based on the manner
in which the Company's chief operating decision maker, our Chief Executive
Officer ("CEO"), reviews the business to assess performance and allocate
resources, and which align to 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"); 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 run-off of the Assurant Health business.
Corporate and Other also includes goodwill impairments, 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, 2021 ("First
Quarter 2021") and the three months ended March 31, 2020 ("First Quarter 2020").
Executive Summary
Consolidated net income from continuing operations was relatively flat at $148.5
million for First Quarter 2021 from $148.6 million for First Quarter 2020, as
the absence of a $79.3 million one-time tax benefit in First Quarter 2020 was
offset by higher net realized gains on investments compared to net realized
losses in First Quarter 2020.
Global Lifestyle segment net income increased $8.2 million, or 7%, to $129.1
million for First Quarter 2021 from $120.9 million for First Quarter 2020,
primarily driven by strong results in Global Automotive, including a
$4.3 million one-time benefit, as well as higher investment income and
underlying global growth. Connected Living results also increased from mobile
subscriber growth in Asia Pacific and North America, higher trade-in volumes and
contributions from recent acquisitions. First Quarter 2020 included
$11.7 million of one-time benefits within Connected Living and Global
Automotive.
Global Lifestyle net earned premiums, fees and other income decreased $84.6
million, or 4%, to $1.86 billion for First Quarter 2021 from $1.95 billion for
First Quarter 2020, reflecting the impact from the previously disclosed mobile
program contract change. Excluding this $98.0 million reduction, net earned
premiums, fees and other income was flat year-over-year.
Global Housing segment net income decreased $6.8 million, or 9%, to $67.4
million for First Quarter 2021 from $74.2 million for First Quarter 2020, driven
by $21.7 million of higher reportable catastrophes primarily from the severe
winter storms in Texas. Excluding reportable catastrophes, segment net income
increased $14.9 million, primarily due to favorable non-catastrophe loss
experience, mainly in Specialty and Other products driven by underwriting
improvements and lower overall claims frequency, as well as growth in
Multifamily Housing. Lender-placed Insurance also benefited from higher premium
rates, though lower real estate owned ("REO") volumes, due to foreclosure
moratoriums, offset results.
Global Housing net earned premiums, fees and other income decreased $7.4
million, or 1%, to $493.0 million for First Quarter 2021 from $500.4 million for
First Quarter 2020, primarily due to declines in Specialty and Other products,
including
                                       34
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the expected run-off from our small commercial product, as well as a modest
decline in Lender-placed Insurance. The decrease was partially offset by growth
in Multifamily Housing.
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 our businesses, in particular our
Connected Living, Multifamily Housing and Global Automotive businesses, and
maintain our position in our Lender-placed Insurance business. Factors affecting
these items, including conditions in financial markets, the global economy and
the markets in which we operate, fluctuations in exchange rates, interest 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, including COVID-19 and measures taken in response
thereto, see "Item 1A-Risk Factors" below and in our 2020 Annual Report, and
"Item 7-Management's Discussion and Analysis of Financial Condition and Results
of Operations-Critical Factors Affecting Results" in our 2020 Annual Report.
Our results may be impacted by our ability to continue to grow in the markets in
which we operate and to maintain relationships with significant clients,
distributors and other parties or renew contracts with them on favorable terms,
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,
Strategic and Operational Risks-Our revenues and profits may decline if we are
unable to maintain relationships with significant clients, distributors and
other parties, or renew contracts with them on favorable terms, or if those
parties face financial, reputational or regulatory issues" and "Significant
competitive pressures, changes in customer preferences and disruption could
adversely affect our results of operations" in our 2020 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 stock.
For First Quarter 2021, net cash used in operating activities from continuing
operations was $454.0 million; net cash provided by investing activities from
continuing operations was $63.2 million; and net cash used in financing
activities from continuing operations was $153.0 million. We had $1.67 billion
in cash and cash equivalents as of March 31, 2021 as compared to $2.21 billion
as of December 31, 2020. See "-Liquidity and Capital Resources," below for
further details.
Critical Accounting Policies and Estimates
Our 2020 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
2020 Annual Report were consistently applied to the unaudited interim
Consolidated Financial Statements for First Quarter 2021.
Recent Accounting Pronouncements
For a discussion of recent accounting pronouncements, see Note 3 to the
Consolidated Financial Statements included elsewhere in this Report.

                                       35
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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,
                                                                              2021                2020
Revenues:
Net earned premiums                                                       $  2,105.6          $ 2,065.5
Fees and other income                                                          249.9              383.6
Net investment income                                                           76.3               83.6
Net realized gains (losses) on investments                                       0.8              (84.0)

Total revenues                                                               2,432.6            2,448.7
Benefits, losses and expenses:
Policyholder benefits                                                          528.7              535.2

Amortization of deferred acquisition costs and value of business acquired

    946.7              895.3
Underwriting, general and administrative expenses                              735.7              892.6

Interest expense                                                                28.4               25.5

Total benefits, losses and expenses                                          2,239.5            2,348.6
Income before provision for income taxes                                       193.1              100.1
Provision (benefit) for income taxes                                            44.6              (48.5)
Net income from continuing operations                                          148.5              148.6
Net income from discontinued operations                                         14.3                7.2
Net income                                                                     162.8              155.8
Less: Net loss (income) attributable to non-controlling interest                 0.2               (1.1)
Net income attributable to stockholders                                        163.0              154.7
Less: Preferred stock dividends                                                 (4.7)              (4.7)
Net income attributable to common stockholders                            $ 

158.3 $ 150.0




For the Three Months Ended March 31, 2021 Compared to the Three Months Ended
March 31, 2020
Net Income from Continuing Operations
Consolidated net income from continuing operations was flat at $148.5 million
for First Quarter 2021 compared to $148.6 million for First Quarter 2020. Net
income from continuing operations for First Quarter 2021 included $34.5 million
of reportable catastrophes, primarily related to the Texas winter storms,
compared to $12.9 million in First Quarter 2020. Excluding reportable
catastrophes, net income from continuing operations increased $21.5 million, or
13% primarily due to the absence of $67.2 million of after-tax net realized
losses, mainly from a decrease in the fair value of our equity securities and
collateralized loan obligations in First Quarter 2020, favorable earnings
contributions from Global Housing, that were primarily driven by favorable
non-catastrophe loss experience and growth in Multifamily Housing, as well as an
increase from Global Lifestyle, primarily due to the continued expansion in
Global Automotive and Connected Living. These increases were partially offset by
the absence of a $79.3 million tax benefit that was recorded in First Quarter
2020 related to the utilization of net operating losses in connection with the
2020 Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act").

                                       36
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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,
                                                                                         2021               2020
Revenues:
Net earned premiums                                                                  $ 1,648.7          $ 1,597.7
Fees and other income                                                                    213.6              349.2
Net investment income                                                                     50.8               54.7
Total revenues                                                                         1,913.1            2,001.6
Benefits, losses and expenses:
Policyholder benefits                                                                    327.4              336.2

Amortization of deferred acquisition costs and value of business acquired

                                                                                 889.2              838.4
Underwriting, general and administrative expenses                                        527.2              667.9
Total benefits, losses and expenses                                                    1,743.8            1,842.5
Segment income before provision for income taxes                                         169.3              159.1
Provision for income taxes                                                                40.2               38.2
Segment net income                                                                   $   129.1          $   120.9
Net earned premiums, fees and other income:
Connected Living (mobile and service contracts)                                      $   952.4          $ 1,088.3
Global Automotive                                                                        812.4              753.1
Global Financial Services and Other                                                       97.5              105.5
Total                                                                                $ 1,862.3          $ 1,946.9
Net earned premiums, fees and other income:
Domestic                                                                             $ 1,380.6          $ 1,434.5
International                                                                            481.7              512.4
Total                                                                                $ 1,862.3          $ 1,946.9


For the Three Months Ended March 31, 2021 Compared to the Three Months Ended
March 31, 2020
Net Income
Segment net income increased $8.2 million, or 7%, to $129.1 million for First
Quarter 2021 from $120.9 million for First Quarter 2020. First Quarter 2021
included $4.3 million of one-time income in Global Automotive, compared to $11.7
million of benefits within Connected Living and Global Automotive in First
Quarter 2020. Excluding these items, segment net income increased $15.6 million,
or 14%, primarily driven by Connected Living from mobile subscriber growth in
Asia Pacific and North America, and higher trade-in results, including
contributions from recent acquisitions, as well as improved profitability within
extended service contracts. Global Automotive also contributed to the increase,
mainly due to organic global growth, higher investment income and lower claims
activity. These increases were partially offset by the run-off of certain
domestic mobile programs.
Total Revenues
Total revenues decreased $88.5 million, or 4%, to $1.91 billion for First
Quarter 2021 from $2.00 billion for First Quarter 2020. Fees and other income
decreased $135.6 million, or 39%, mainly driven by a previously disclosed mobile
program contract change, the run-off of certain domestic mobile programs,
partially offset by growth from recent mobile acquisitions. Net investment
income decreased $3.9 million, or 7%, primarily due to lower cash yields and
lower income from real estate, partially offset by higher income from an
increase in fair value of investments in limited partnerships. These decreases
in total revenues were partially offset by an increase in net earned premiums of
$51.0 million, or 3%, primarily driven by continued growth from prior period
sales in our Global Automotive business, partially offset by the run-off of
certain domestic mobile programs.
                                       37
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Total Benefits, Losses and Expenses
Total benefits, losses and expenses decreased $98.7 million, or 5%, to $1.74
billion for First Quarter 2021 from $1.84 billion for First Quarter 2020. The
decrease was primarily due to a decrease in underwriting, general and
administrative expenses of $140.7 million, or 21%, primarily due to the run-off
of certain domestic mobile programs and a previously disclosed mobile program
contract change, partially offset by an increase in growth in our Global
Automotive and Connected Living businesses, including new mobile acquisitions.
Policyholder benefits decreased $8.8 million, or 3%, primarily driven by lower
loss experience from Global Automotive. The decrease in total benefits, losses
and expenses was partially offset by a $50.8 million, or 6%, increase in
amortization of deferred acquisition costs and value of business acquired,
mainly related to growth in our Global Automotive business.
                                       38
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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,
                                                                              2021                2020
Revenues:
Net earned premiums                                                      $     456.9          $   467.8
Fees and other income                                                           36.1               32.6
Net investment income                                                           19.4               22.0
Total revenues                                                                 512.4              522.4
Benefits, losses and expenses:
Policyholder benefits                                                          201.3              198.7

Amortization of deferred acquisition costs and value of business acquired

                                                                        57.5               56.9
Underwriting, general and administrative expenses                              168.8              173.3
Total benefits, losses and expenses                                            427.6              428.9
Segment income before provision for income taxes                                84.8               93.5
Provision for income taxes                                                      17.4               19.3
Segment net income                                                       $      67.4          $    74.2
Net earned premiums, fees and other income:
Lender-placed Insurance                                                  $     260.4          $   264.3
Multifamily Housing                                                            117.3              109.0
Specialty and Other                                                            115.3              127.1
Total                                                                    $     493.0          $   500.4


For the Three Months Ended March 31, 2021 Compared to the Three Months Ended
March 31, 2020
Net Income
Segment net income decreased $6.8 million, or 9%, to $67.4 million for First
Quarter 2021 from $74.2 million for First Quarter 2020. Segment net income for
First Quarter 2021 included $34.5 million of reportable catastrophes, primarily
related to the Texas winter storms, compared to $12.8 million for First Quarter
2020. Excluding reportable catastrophes, segment net income increased $14.9
million, or 17%, primarily driven by favorable non-catastrophe losses primarily
across Specialty and Other products, higher premium rates in our Lender-placed
Insurance business and growth in our Multifamily Housing business. These
increases were partially offset by lower REO volumes related to COVID-19 and
fewer policies in-force from a financially insolvent client in our Lender-placed
Insurance business.
Total Revenues
Total revenues decreased $10.0 million, or 2%, to $512.4 million for First
Quarter 2021 from $522.4 million for First Quarter 2020. Net earned premiums
decreased $10.9 million, or 2%, primarily due to declines in our Lender-placed
Insurance business, mainly driven by lower REO volumes related to COVID-19 and a
reduction in policies in-force for a financially insolvent client, the run-off
of certain sharing economy offerings and the run-off of our small commercial
product. This decrease was partially offset by premium rate increases in our
Lender-placed Insurance business and continued growth from renters insurance in
our Multifamily Housing business. Net investment income decreased $2.6 million,
or 12%, primarily due to lower income from real estate related investments and
lower cash yields. The decrease in total revenues was partially offset by an
increase in fees and other income of $3.5 million, or 11%, primarily due to an
increase in claim processing fees in our Lender-placed Insurance business and
growth in our Multifamily Housing business.
Total Benefits, Losses and Expenses
Total benefits, losses and expenses decreased $1.3 million to $427.6 million for
First Quarter 2021 from $428.9 million for First Quarter 2020. The decrease was
primarily due to a decrease in underwriting, general and administrative expenses
of
                                       39
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$4.5 million, or 3%, primarily due to lower catastrophe-related assessments and
a decline in advertising expenses for the renters business in Multifamily
Housing. Policyholder benefits increased $2.6 million, or 1%, mainly from higher
reportable catastrophe losses, partially offset by lower non-catastrophe losses
in our sharing economy offerings and small commercial product, as well as lower
frequency of theft and vandalism claims across most major products.
                                       40
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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,
                                                                         2021                2020
Revenues:

Fees and other income                                               $       0.2          $     1.8
Net investment income                                                       6.1                6.9
Net realized gains (losses) on investments                                  0.8              (84.0)

Total revenues                                                              7.1              (75.3)
Benefits, losses and expenses:
Policyholder benefits                                                         -                0.3
General and administrative expenses                                        39.7               51.4

Interest expense                                                           28.4               25.5

Total benefits, losses and expenses                                        68.1               77.2
Segment loss before benefit for income taxes                              (61.0)            (152.5)
Benefit for income taxes                                                  (13.0)            (106.0)
Segment net loss from continuing operations                         $     

(48.0) $ (46.5)




For the Three Months Ended March 31, 2021 Compared to the Three Months Ended
March 31, 2020
Net Loss from Continuing Operations
Segment net loss from continuing operations increased $1.5 million, or 3%, to
$48.0 million for First Quarter 2021 from $46.5 million for First Quarter 2020.
The increase in net loss was primarily due to the absence of a $79.3 million tax
benefit related to the utilization of net operating losses in connection with
the CARES Act in First Quarter 2020. The increase was partially offset by the
absence of $67.2 million of after-tax net realized losses, mainly from a
decrease in the fair value of our equity securities and collateralized loan
obligations in First Quarter 2020, as well as the absence of $5.8 million of
after-tax losses associated with the sale of Iké and $4.2 million of after-tax
acquisition related transaction costs, all recorded in First Quarter 2020.
Total Revenues
Total revenues increased $82.4 million to $7.1 million for First Quarter 2021
from $(75.3) million for First Quarter 2020, primarily due to the absence of
unrealized losses on investments mostly related to a decrease in the fair value
of equity securities and collateralized loan obligations in First Quarter 2020.
Total Benefits, Losses and Expenses
Total benefits, losses and expenses decreased $9.1 million, or 12%, to $68.1
million for First Quarter 2021 from $77.2 million for First Quarter 2020. The
decrease was primarily driven by the absence of $5.2 million of acquisition
related transaction costs from First Quarter 2020 and a $4.2 million decrease in
current expected credit losses associated with our credit risk from reinsurance
recoverables related to businesses in run-off.
                                       41
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Discontinued Operations
Overview
The table below presents information regarding the results of the discontinued
operations for the periods indicated:
                                                                         

For the Three Months Ended March


                                                                                        31,
                                                                              2021                2020
Revenues:
Net earned premiums                                                      $      17.7          $    18.3
Fees and other income                                                           37.5               37.5
Net investment income                                                           72.0               72.4
Net realized losses on investments                                              (1.1)             (11.3)

Total revenues                                                                 126.1              116.9
Benefits, losses and expenses:
Policyholder benefits                                                           74.0               72.0

Amortization of deferred acquisition costs and value of business acquired

                                                                        19.2               18.9
Underwriting, general and administrative expenses                               21.8               16.9
Total benefits, losses and expenses                                            115.0              107.8
Income before (benefit) provision for income taxes                              11.1                9.1
(Benefit) provision for income taxes                                            (3.2)               1.9
Net income from discontinued operations                                  $  

14.3 $ 7.2




For the Three Months Ended March 31, 2021 Compared to the Three Months Ended
March 31, 2020
Net Income from Discontinued Operations
Net income from discontinued operations increased $7.1 million, or 99%, to $14.3
million for First Quarter 2021 from $7.2 million for First Quarter 2020,
primarily due to the absence of unrealized losses mainly related to decreases in
the fair values of equity securities in First Quarter 2020.The increase in First
Quarter 2021 was also due to a $1.9 million net gain related to the pending sale
of Global Preneed consisting of $5.3 million in tax benefits partially offset by
$3.4 million of after-tax transaction costs incurred in connection with the
pending sale. The increases in net income from discontinued operations were
partially offset by a $2.4 million decrease in Global Preneed's operating
results primarily due to higher mortality in connection with COVID-19.
Total Revenues
Total revenues increased $9.2 million, or 8%, to $126.1 million for First
Quarter 2021 compared to $116.9 million for First Quarter 2020, primarily due to
the absence of unrealized losses mainly related to decreases in the fair values
of equity securities in First Quarter 2020.
Total Benefits, Losses and Expenses
Total benefits, losses and expenses increased $7.2 million, or 7%, to $115.0
million for First Quarter 2021 from $107.8 million for First Quarter 2020,
primarily driven by transactions expenses in First Quarter 2021 related to the
pending sale and higher policyholder benefits mainly due to an increase in
inforce policies and higher mortality due to COVID-19.

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Investments


We had total investments of $7.87 billion and $8.22 billion as of March 31, 2021
and December 31, 2020, respectively. Net unrealized gains on our fixed maturity
securities portfolio decreased by $200.6 million during First Quarter 2021, from
$570.9 million as of December 31, 2020 to $370.3 million as of March 31, 2021,
primarily due to an increase in Treasury yields.
The following table shows the credit quality of our fixed maturity securities
portfolio as of the dates indicated:
                                                                             Fair value as of
Fixed Maturity Securities by Credit Quality               March 31, 2021                           December 31, 2020
Aaa / Aa / A                                  $      3,850.0                 58.5  %       $  4,051.3                 59.5  %
Baa                                                  2,279.1                 34.7  %          2,288.1                 33.6  %
Ba                                                     342.9                  5.2  %            384.4                  5.6  %
B and lower                                            103.9                  1.6  %             91.7                  1.3  %
Total                                         $      6,575.9                100.0  %       $  6,815.5                100.0  %

The following table shows the major categories of net investment income for the periods indicated:

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