- Assurant uses net operating income, excluding reportable catastrophes (which represents catastrophe losses net of reinsurance and client profit sharing adjustments and including reinstatement and other premiums), as an important measure of the company’s operating performance. Net operating income equals net income attributable to common stockholders, excluding Global Preneed goodwill impairment, 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), COVID-19 direct and incremental expenses, the CARES Act tax benefit, foreign exchange gains (losses) from remeasurement of monetary assets and liabilities, the net charge related to Iké, as well as 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 with 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) | 2020 | 2019 | 2018 |
|---|---|---|---|
| Global LifestyleSee footnote 1(1) | 2020: 437.2 | 2019: 409.4 | 2018: 297.7 |
| Global Housing, excluding reportable catastrophesSee footnote 1(1) | 2020: 371.0 | 2019: 299.6 | 2018: 320.5 |
| Global PreneedSee footnote 1(1) | 2020: 48.0 | 2019: 52.2 | 2018: 57.7 |
| Corporate and otherSee footnote 2(2) | 2020: Loss of (92.8 | 2019: Loss of (85.6 | 2018: Loss of (84.0 |
| Interest expense | 2020: Loss of (81.2 | 2019: Loss of (82.9 | 2018: Loss of (65.8 |
| Preferred stock dividends | 2020: Loss of (18.7 | 2019: Loss of (18.7 | 2018: Loss of (11.0 |
| Net operating income, excluding reportable catastrophes | 2020: 663.5 | 2019: 574.0 | 2018: 515.1 |
| Adjustments, pre-tax: | |||
| Assurant Health runoff operations | 2020: 16.1 | 2019: 28.0 | 2018: 3.2 |
| Net realized (losses) gains on investments | 2020: Loss of (17.4 | 2019: 66.3 | 2018: Loss of (63.4 |
| Global Preneed goodwill impairment | 2020: Loss of (137.8 | 2019: — | 2018: — |
| Reportable catastrophes | 2020: Loss of (173.7 | 2019: Loss of (51.8 | 2018: Loss of (214.8 |
| COVID-19 direct and incremental expenses | 2020: Loss of (27.2 | 2019: — | 2018: — |
| CARES Act tax benefit (after-tax) | 2020: 84.4 | 2019: — | 2018: — |
| Amortization of deferred gains and gains on disposal of businesses | 2020: 10.7 | 2019: 14.3 | 2018: 56.9 |
| Loss on extinguishment of debt and other related costs | 2020: — | 2019: Loss of (37.4 | 2018: — |
| Net TWG transaction and other related charges | 2020: — | 2019: Loss of (0.6 | 2018: Loss of (52.6 |
| Acquisition integration expenses | 2020: Loss of (22.1 | 2019: Loss of (27.5 | 2018: Loss of (29.8 |
| Loss on sale of Mortgage Solutions | 2020: — | 2019: Loss of (9.6 | 2018: Loss of (40.3 |
| Foreign exchange related losses | 2020: Loss of (11.7 | 2019: Loss of (18.2 | 2018: Loss of (14.8 |
| Net charge related to Iké | 2020: Loss of (5.9 | 2019: Loss of (163.0 | 2018: — |
| Other adjustmentsSee footnote 3(3) | 2020: 4.2 | 2019: Loss of (19.1 | 2018: 8.4 |
| Benefit for income taxes | 2020: 40.0 | 2019: 8.5 | 2018: 69.0 |
| Net income attributable to common stockholders | 2020: 423.1 | 2019: 363.9 | 2018: 236.8 |
- Segment net operating income of the Global Lifestyle operating segment is equal to GAAP segment net income, except that Twelve Months 2019 excludes losses of $0.1 million after-tax ($0.1 million benefit pre-tax). Segment net operating income of the Global Housing operating segment is equal to GAAP segment net income of $233.8 million in 2020, $258.7 million in 2019 and $150.8 million in 2018, and also excludes reportable catastrophes of $137.2 million in 2020, $40.9 million in 2019 and $169.7 million in 2018. Segment net operating income of the Global Preneed operating segment is equal to GAAP segment net income.
- Refer to Note 3 in this Non-GAAP Financial Measures section for more information on this non-GAAP financial measure and a reconciliation of Corporate and other net operating loss to its most comparable GAAP measure.
- Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website https://ir.assurant.com/investor/default.aspx
- Assurant uses net operating income per diluted share, excluding reportable catastrophes, as another important measure of the company’s stockholder value. Net operating income per diluted share equals net operating income (defined above), excluding reportable catastrophes (defined above), plus any dilutive preferred stock dividends divided by weighted average diluted shares outstanding. The company believes this metric provides investors with a valuable measure of stockholder value because it excludes items that do not represent the ongoing operations of the Company and because it excludes reportable catastrophes, which can be volatile. The comparable GAAP measure is net income attributable to common stockholders per diluted share, defined as net income attributable to common stockholders plus any dilutive preferred stock dividends divided by weighted average diluted shares outstanding.
Twelve Months Ended December 31,
| ($ per share) | 2020 | 2019 | 2018 |
|---|---|---|---|
| Net operating income, excluding reportable catastrophes, per diluted shareSee footnote 1(1) |
2020: 10.80 | 2019: 9.21 | 2018: 8.65 |
| Adjustments, pre-tax: | |||
| Assurant Health runoff operations | 2020: 0.25 | 2019: 0.45 | 2018: 0.05 |
| Net realized (losses) gains on investments | 2020: Loss of (0.28 | 2019: 1.06 | 2018: Loss of (1.06 |
| Global Preneed goodwill impairment | 2020: Loss of (2.18 | 2019: — | 2018: — |
| Reportable catastrophes | 2020: Loss of (2.75 | 2019: Loss of (0.83 | 2018: Loss of (3.61 |
| COVID-19 direct and incremental expenses | 2020: Loss of (0.43 | 2019: — | 2018: — |
| CARES Act tax benefit (after tax) | 2020: 1.34 | 2019: — | 2018: — |
| Amortization of deferred gains on disposal of businesses | 2020: 0.17 | 2019: 0.23 | 2018: 0.97 |
| Net TWG transaction and other related charges | 2020: — | 2019: Loss of (0.01 | 2018: Loss of (0.88 |
| Acquisition integration expenses | 2020: Loss of (0.35 | 2019: Loss of (0.44 | 2018: Loss of (0.50 |
| Loss on sale of Mortgage Solutions | 2020: — | 2019: Loss of (0.15 | 2018: Loss of (0.68 |
| Foreign exchange related losses | 2020: Loss of (0.19 | 2019: Loss of (0.29 | 2018: Loss of (0.25 |
| Net charge related to Iké | 2020: Loss of (0.09 | 2019: Loss of (2.62 | 2018: — |
| Loss on extinguishment of debt and other related costs | 2020: — | 2019: Loss of (0.60 | 2018: — |
| Other adjustmentsSee footnote 2(2) | 2020: 0.06 | 2019: Loss of (0.31 | 2018: 0.16 |
| Benefit for income taxes | 2020: 0.64 | 2019: 0.14 | 2018: 1.16 |
| Net income attributable to common stockholders per diluted shareSee footnote 1(1) |
2020: 6.99 | 2019: 5.84 | 2018: 3.98 |
- Information on the share counts used in the per share calculations are included in the Financial Supplement located on Assurant’s Investor Relations website https://ir.assurant.com/investor/default.aspx
- Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website https://ir.assurant.com/investor/default.aspx
- Assurant uses Corporate and Other net operating loss as an important measure of the Corporate and Other segment’s performance. Corporate and Other net operating loss equals Corporate and Other segment net loss attributable to common stockholders, excluding the Global Preneed goodwill impairment, interest expense, 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), COVID-19 direct and incremental expenses, the CARES Act tax benefit, foreign exchange gains (losses) from remeasurement of monetary assets and liabilities, the net charge related to Iké, as well as other highly variable or unusual items other than reportable catastrophes. The company believes Corporate and Other net operating loss provides investors a valuable measure of the performance of the company’s Corporate and Other segment because it excludes highly variable items that do not represent the ongoing results of the company’s Corporate and Other segment. The comparable GAAP measure is Corporate and Other segment net loss attributable to common stockholders.
(Unaudited)
Twelve Months
| ($ in millions) | 2020 | 2019 | 2018 |
|---|---|---|---|
| GAAP Corporate and Other segment net loss attributable to common stockholders |
2020: Loss of (295.9 | 2019: Loss of (356.3 | 2018: Loss of (269.4 |
| Adjustments, pre-tax: | |||
| Assurant Health runoff operations | 2020: Loss of (16.1 | 2019: Loss of (28.0 | 2018: Loss of (3.2 |
| Net realized losses (gains) on investments | 2020: 17.4 | 2019: Loss of (66.3 | 2018: 63.4 |
| Interest expense | 2020: 102.9 | 2019: 105.0 | 2018: 83.2 |
| Global Preneed goodwill impairment | 2020: 137.8 | 2019: — | 2018: — |
| COVID-19 direct and incremental expenses | 2020: 27.2 | 2019: — | 2018: — |
| CARES Act tax benefit (after-tax) | 2020: Loss of (84.4 | 2019: — | 2018: — |
| Amortization of deferred gains and gains on disposal of businesses | 2020: Loss of (10.7 | 2019: Loss of (14.3 | 2018: Loss of (56.9 |
| Loss on extinguishment of debt and other related costs | 2020: — | 2019: 37.4 | 2018: — |
| Net TWG transaction and other related charges | 2020: — | 2019: 0.6 | 2018: 52.6 |
| Acquisition integration expenses | 2020: 22.1 | 2019: 27.5 | 2018: 29.8 |
| Loss on sale of Mortgage Solutions | 2020: — | 2019: 9.6 | 2018: 40.3 |
| Foreign exchange related losses | 2020: 11.7 | 2019: 18.2 | 2018: 14.8 |
| Net charge related to Iké | 2020: 5.9 | 2019: 163.0 | 2018: — |
| Other adjustmentsSee footnote 1(1) | 2020: Loss of (4.2 | 2019: 19.1 | 2018: Loss of (8.4 |
| Benefit for income taxes | 2020: Loss of (25.2 | 2019: Loss of (19.8 | 2018: Loss of (41.2 |
| Preferred stock dividends | 2020: 18.7 | 2019: 18.7 | 2018: 11.0 |
| Corporate & other net operating loss | 2020: Loss of (92.8 | 2019: 85.6 | 2018: 84.0 |
- Additional details about the components of Other adjustments and other key financial metrics are included in the Financial Supplement located on Assurant’s Investor Relations website https://ir.assurant.com/investor/default.aspx