ABOUT ASSURANT
Non-GAAP Financial Measures
(1) Assurant uses net operating income, excluding reportable catastrophes, as an important measure of the company’s operating performance. Net operating income equals net income attributable to common stockholders, excluding the net charge related to Iké, Assurant Health runoff operations, net realized gains (losses) on investments, amortization of deferred gains (including Assurant Employee Benefits), net charges relating to the acquisition of The Warranty Group (“TWG”), foreign exchange gains (losses) from remeasurement of monetary assets and liabilities, loss on sale of Mortgage Solutions and other highly variable or unusual items. Additionally, it excludes reportable catastrophes which represent catastrophe losses net of reinsurance and client profit sharing adjustments and including reinstatement and other premiums. The company believes net operating income, excluding reportable catastrophes, provides investors a valuable measure of the performance of the company’s ongoing business because it excludes items that do not represent the ongoing operations of the company and because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income attributable to common stockholders.
| (UNAUDITED) | Twelve Months | |||
|---|---|---|---|---|
| ($ in millions) | 2019 | 2018 | 2017 | 2016 |
| Global Lifestyle(1) | $ 409.4 | $ 297.7 | $ 180.0 | $ 154.4 |
| Global Housing, excluding reportable catastrophes | 299.6 | 320.5 | 287.9 | 291.0 |
| Global Preneed | 52.2 | 57.7 | 39.6 | 42.3 |
| Corporate and other | (85.6) | (84.0) | (62.8) | (71.0) |
| Interest expense | (82.9) | (65.8) | (32.2) | (37.4) |
| Preferred stock dividends | (18.7) | (11.0) | — | — |
| Net operating income | 574.0 | 515.1 | 412.5 | 379.3 |
| Adjustments, pre-tax: | ||||
| Assurant Health runoff operations | (28.0) | 3.2 | 16.0 | (47.3) |
| Assurant Employee Benefits | — | — | — | 13.8 |
| Net realized gains (losses) on investments | 66.3 | (63.4) | 30.1 | 162.2 |
| Reportable catastrophes | (51.8) | (214.8) | (295.7) | (157.4) |
| Amortization of deferred gains on disposal of businesses | 14.3 | 56.9 | 103.9 | 394.5 |
| Loss on extinguishment of debt and other related costs | (37.4) | — | — | (23.0) |
| Impact of TCJA at enactment | — | (1.5) | 177.0 | — |
| Net TWG acquisition related charges(2) | (28.1) | (82.4) | (12.5) | — |
| Change in tax liabilities | — | — | 27.1 | — |
| Loss on sale of Mortgage Solutions | (9.6) | (40.3) | — | — |
| Foreign exchange related losses | (18.2) | (14.8) | — | — |
| Net charge related to Iké | (163.0) | — | — | — |
| Other adjustments(2) | (19.1) | 9.9 | 9.1 | (40.1) |
| Benefit (provision) for income taxes | 8.5 | 69.0 | 52.1 | (116.6) |
| Net income attributable to common stockholders | $ 363.9 | $ 236.8 | $ 519.6 | $ 565.4 |
(1) Twelve Months 2019 and Twelve Months 2017 exclude losses of $0.1 million after-tax ($0.1 million benefit pre-tax) and $2.0 million after-tax ($3.1 million pre-tax), respectively.
(2) Additional details about the components of net TWG acquisition related charges, the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx
(2) Assurant uses net operating income per diluted share, excluding reportable catastrophes, as another important measure of the company’s stockholder value. Net operating income per diluted share equals net operating income, excluding reportable catastrophes (defined above), plus any dilutive preferred stock dividends divided by weighted average diluted shares outstanding. The Company believes this metric provides investors a valuable measure of stockholder value because it excludes items that do not represent the ongoing operations of the Company and because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income attributable to common stockholders per diluted share, defined as net income attributable to common stockholders plus any dilutive preferred stock dividends divided by weighted average diluted shares outstanding.
| Twelve Months Ended December 31, | ||
|---|---|---|
| ($ per share) | 2019 | 2018 |
| Net operating income, excluding reportable catastrophes, per diluted share(1) | $ 9.21 | $ 8.65 |
| Adjustments, pre-tax: | ||
| Assurant Health runoff operations | 0.45 | 0.05 |
| Net realized gains (losses) on investments | 1.06 | (1.06) |
| Reportable catastrophes | (0.83) | (3.61) |
| Amortization of deferred gains on disposal of businesses | 0.23 | 0.97 |
| Net TWG acquisition related charge(2) | (0.45) | (1.38) |
| Loss on sale of Mortgage Solutions | (0.15) | (0.68) |
| Foreign exchange related losses | (0.29) | (0.25) |
| Net charge related to Iké | (2.62) | — |
| Loss on extinguishment of debt and other related costs | (0.60) | — |
| Other adjustments(2) | (0.31) | 0.13 |
| Benefit for income taxes | 0.14 | 1.16 |
| Net income attributable to common stockholders, per diluted share(1) | $ 5.84 | $ 3.98 |
(1) Information on the share counts used in the per share calculations are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx
(2) Additional details about the components of net TWG acquisition related charges, the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website http://ir.assurant.com/investor/default.aspx